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Evidence-Based Pathways for Business to Support the SDGs

9 10 2023

Climate Week attendees strike a pose at the SDG Pavilion in front of the United Nations Headquarters in New York City on September 21, 2023. (Image credit: U.N. Partnerships/Pier Paolo Cito via Flickr)

By Mary Riddle from Triple Pundit • Reposted: October 9, 2023

As the Sustainable Development Goals (SDGs) reach their midpoint, the world is “woefully off-track” in meeting the targets by the 2030 deadline, the United Nations warned this summer. Only 15 percent of the SGDs are on track, according to the U.N. Global Compact. Progress on 37 percent of the targets has either stagnated or reversed, while efforts on the remaining half are considered weak or insufficient. With seven years left to meet the Global Goals, the U.N. is calling on the private sector to help accelerate implementation.

While business leaders remain confident about the vision for the future underscored in the SDGs, their confidence in meeting the targets by 2030 dwindled from 92 percent in 2022 to 51 percent this year, according to a new report.

Last month, Accenture partnered with the U.N. Global Compact to publish the Global Private-Sector Stocktake, a first-of-its-kind look at private-sector impact on the SDGs, with tangible action items and resources that companies can consider to drive progress on the road to 2030. The report outlined 10 key pathways for corporations — which include putting existing markets to work for social equity by way of a living wage and addressing gender pay gaps, as well as more transformative moves to integrate the SDGs into corporate finance and promote sustainability leadership in the private sector.

Sustainable corporate finance

“There is a lot of momentum around impact accounting, which ensures companies are taking into full account both tangible outcomes like revenues and returns for shareholders, but also the intangible outcomes like indirect carbon emissions,” said Vik Viniak, senior managing director and North America sustainability lead at Accenture.

“For example, Mastercard links incentives for executives and employees to their ESG [environmental, social and governance] objectives, which include gender equity and emissions reductions,” he said. “With Google and Amazon, if you look at their tech businesses like Google Cloud and [Amazon Web Services], they are using green principles to create more energy-efficient computing systems, and that ties into their executive remuneration. In most public companies, your compensation is tied to shareholder value, but it is important to remember that ESG is also directly tied to shareholder value.”

Sustainable corporate finance just makes good business sense. Impact accounting helps corporations establish better decision-making frameworks and can give companies leverage in discussions with their supply chain partners.

“If you are looking at two suppliers in your supply chain and everything else is equal, but one supplier has a better record on emissions, suddenly the decision becomes much easier,” Viniak said. Impact accounting should also be part of a company’s public reports, he said.

However, he emphasized that sustainable finance is an evolving space. The U.N. Global Compact launched the CFO Coalition last month to put clear definitions and guidelines in place to help companies integrate the SDGs into their corporate financing. Viniak is optimistic about the coalition’s work. “The current state of confusion is causing companies to not take action,” he said. “There is a paralysis. This clarity can help get blood flowing so it can function.”

Strengthening sustainability leadership for the SDGs

“True sustainability leadership is about holding senior leaders accountable,” Viniak said. “Empower everyone in the organization to take action, but make sure leaders are talking the talk and walking the walk. We need humility and self-realization in organizations. Management can lead by being humble and knowing that they can do more.”

There are clear benefits to corporate support for the SDGs, but it is important for companies to be able to substantiate their claims, show their metrics, and transparently report on their goals, reasoning and progress. “The market has gotten smarter,” Viniak said. “Investors and consumers can identify SDG-washing in companies that can’t support their claims.”

When leaders embrace the SDGs, it can serve to engage the entire workforce, Viniak said. “For leaders, one of the most important incentives for working toward the SDGs is that people are going to get excited,” he told us. “At Accenture, we have a huge, young workforce, and this workforce is asking Accenture what we are doing for the SDGs. Our CEO always says that we need to be our best credential. We have rallied our workforce around the mission of sustainability, and in our global workforce, in every community we are in, our people are making an impact. You can rally your whole organization around the SDGs and give them the tools to measure their impacts, and we can all hold each other accountable.”

The SDG Stocktake is a clarion call for all corporations

For companies that have yet to examine their impact on the SDGs, Viniak emphasized that it is not too late. “I encourage every company to start the process of understanding specific ESG impacts based on their industry and sector,” he said. “The biggest positive and negative impacts need to inform strategy.”

Once a corporation clearly understands their ESG impacts, they can evaluate how those impacts could help meet the targets of the SDGs and embed that into their decision-making frameworks.

“You can’t improve what you can’t measure,” Viniak said. “Companies must reflect on their impact on the SDGs. Then, they must set goals, identify how they can continue to accelerate the areas in which they lead, and how they can double down to improve those areas where they might be behind.”

Scaling up new incentive systems is also key to move progress forward. In the Global Private-Sector Stocktake report, business leaders clearly identified the support they need. “There is a huge lack of clarity in terms of goals and measurements,” Viniak explained. “Eighty percent of business leaders claim there are insufficient policy incentives to incorporate ESG considerations, and 84 percent are uncertain about measurements and calculations.”

Fortunately, the private sector is rapidly innovating to address leadership concerns, with new data management companies and softwares regularly coming to market that address these challenges. “There are now data providers that are helping companies define specific impacts on the SDGs,” Viniak said. “This kind of data could help companies understand their own impact in a measurable way for the first time.”

But for these services to make a difference, companies have to use them. “Companies need to see the value of this and pay for it,” Viniak said. “This data could revolutionize incentives if tied to accounting and taxation in the future. We may be able to crack the data measurement problem soon. While companies are currently not being held accountable in consistent ways, with emerging data tools, they can be and should be.”

Viniak recognizes that the private sector is off track, but he remains optimistic. “Games are won in the second half, not the first,” he said. “Yes, we are trailing. We are behind, but we can win. The private sector is a key player to achieve the SDGs. It is time to step up in the second half to win this game.”

To see the original post, follow this link: https://www.triplepundit.com/story/2023/ways-business-support-sdgs/785016

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Tags: accountability, corporate social reponsibility, corporate social responsibility, CSR, ESG, Global Private-Sector Stocktake, green marketing, responsible brands, SDGs, sustainability, sustainable branding, sustainable brands, Sustainable Development Goals, U.N. Global Compact
Categories : Climate Change, corporate social responsibility, DEI, ESG, green marketing, reputation management, responsible brands, social responsibility, sustainability, sustainable branding, sustainable brands

How Sustainable Is Your Strategy? Insights From Reuters Impact Report

7 10 2023

*Photo credit: monsitj – stock.adobe.com*

From the Reuters Events Sustainable Business vs. CSRWire • Reposted: October 7, 2023

The urgent call to decarbonize has thrust sustainability into the spotlight on the corporate stage. Whilst the growth in reporting has created an expansive list of pressing priorities.

But how are businesses preparing for the comprehensive and complex reporting landscape? Where are they investing today, and perhaps more pertinently in the years to come, to meet the needs of regulators and climate-conscious stakeholders? And how are today’s businesses strategizing to meet their sustainability ambitions?

Discover the answers to these pivotal questions in the Reuters Impact Global Sustainability Report 2023, a valuable resource that will help shape your sustainability strategy, chart your investment course, and provide a meaningful benchmark against industry peers.

Our unique, proprietary dataset, assembled using survey responses from more than 570 sustainability practitioners and decision-makers globally, provides a detailed examination of how sustainability investments are shifting towards a new set of technologies, where businesses are setting their sustainability priorities and the strategies being pursued to meet them.

Our research has unveiled several key findings:

Data analysis and emissions accounting solutions are the leading destinations of business investment for sustainability purposes today, but by 2026 a new suite of technologies is expected to lead the way.
Our technology investment leaderboard highlights differences in investment approach between companies operating in North America and those in Europe. Are European organizations still sustainability’s trailblazers?
Energy and decarbonization is a top priority for a leading majority of organizations responding to our survey, however there is a distinct mix of strategies being pursued to reduce remissions.

Claim Your Report Now

To see the original post, follow this link: https://www.3blmedia.com/news/how-sustainable-your-strategy-insights-reuters-impact-report

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Tags: accountability, corporate social reponsibility, corporate social responsibility, CSR, ESG, green marketing, responsible brands, Reuters Impact Global Sustainability Report, sustainability, sustainable branding, sustainable brands
Categories : Climate Change, corporate social responsibility, DEI, ESG, responsible brands, social responsibility, sustainability, sustainable branding, sustainable brands

Lego’s ESG dilemma: Why an abandoned plan to use recycled plastic bottles is a wake-up call for supply chain sustainability

7 10 2023

Legos are designed to last for decades. That posed a challenge when the toymaker tried to switch to recycled plastics. AP Photo/Shizuo Kambayashi

By Tinglong Dai, Professor of Operations Management & Business Analytics, Carey Business School, Johns Hopkins University, Christopher S. Tang, Professor of Supply Chain Management, University of California, Los Angeles and Hau L. Lee, Professor of Operations, Information & Technology, Stanford University via The Conversation • Reposted: October 7, 2023

Lego, the world’s largest toy manufacturer, has built a reputation not only for the durability of its bricks, designed to last for decades, but also for its substantial investment in sustainability. The company has pledged US$1.4 billion to reduce carbon emissions by 2025, despite netting annual profits of just over $2 billion in 2022.

This commitment isn’t just for show. Lego sees its core customers as children and their parents, and sustainability is fundamentally about ensuring that future generations inherit a planet as hospitable as the one we enjoy today.

So it was surprising when the Financial Times reported on Sept. 25, 2023, that Lego had pulled out of its widely publicized “Bottles to Bricks” initiative.

This ambitious project aimed to replace traditional Lego plastic with a new material made from recycled plastic bottles. However, when Lego assessed the project’s environmental impact throughout its supply chain, it found that producing bricks with the recycled plastic would require extra materials and energy to make them durable enough. Because this conversion process would result in higher carbon emissions, the company decided to stick with its current fossil fuel-based materials while continuing to search for more sustainable alternatives.

As experts in global supply chains and sustainability, we believe Lego’s pivot is the beginning of a larger trend toward developing sustainable solutions for entire supply chains in a circular economy. New regulations in the European Union – and expected in California – are about to speed things up.

Examining all the emissions, cradle to grave

Business leaders are increasingly integrating environmental, social and governance factors, commonly known as ESG, into their operational and strategic frameworks. But the pursuit of sustainability requires attention to the entire life cycle of a product, from its materials and manufacturing processes to its use and ultimate disposal.

The results can lead to counterintuitive outcomes, as Lego discovered.

Understanding a company’s entire carbon footprint requires looking at three types of emissions: Scope 1 emissions are generated directly by a company’s internal operations. Scope 2 emissions are caused by generating the electricity, steam, heat or cooling a company consumes. And scope 3 emissions are generated by a company’s supply chain, from upstream suppliers to downstream distributors and end customers.

Lists of examples of sope 1, 2, 3 emissions sources with an illustration of a factory in the center — *What scope 1, 2 and 3 emissions involve. Graphic: Chester Hawkins/Center for American Progress*

Currently, fewer than 30% of companies report meaningful scope 3 emissions, in part because these emissions are difficult to track. Yet, companies’ scope 3 emissions are on average 11.4 times greater than their scope 1 emissions, data from corporate disclosures reported to the nonprofit CDP show.

Lego is a case study of this lopsided distribution and the importance of tracking scope 3 emissions. A staggering 98% of Lego’s carbon emissions are categorized as scope 3.

From 2020 to 2021, the company’s total emissions increased by 30%, amid surging demand for Lego sets during the COVID-19 lockdowns – even though the company’s scope 2 emissions related to purchased energy such as electricity decreased by 40%. The increase was almost entirely in its scope 3 emissions.

As more companies follow in Lego’s footsteps and begin reporting scope 3 emissions, they will likely find themselves in the same position, realizing that efforts to reduce carbon emissions often boil down to supply chain and consumer-use emissions. And the results may force them to make some tough choices.

Policy and disclosure: The next frontier

New regulations in the European Union and pending in California are designed to increase corporate emissions transparency by including supply chain emissions.

The EU in June 2023 adopted the first set of European Sustainability Reporting Standards, which will require publicly traded companies in the EU to disclose their scope 3 emissions, starting in their reports for fiscal year 2024.

California’s legislature passed similar legislation requiring companies with revenues of more than $1 billion to disclose their scope 3 emissions. California’s governor has until Oct. 14, 2023, to consider the bill and is expected to sign it.

At the federal level, the U.S. Securities and Exchange Commission released a proposal in March 2022 that, if finalized, would require all public companies to report climate-related risk and emissions data, including scope 3 emissions. After receiving significant pushback, the SEC began reconsidering the scope 3 reporting rule. But SEC Chairman Gary Gensler suggested during a congressional hearing in late September 2023 that California’s move could influence federal regulators’ decision.

This increased focus on disclosure of scope 3 emissions will undoubtedly increase pressure on companies.

Because scope 3 emissions are significant, yet often not measured or reported, consumers are rightly concerned that companies that claim to have low emissions may be greenwashing without taking action to reduce emissions in their supply chains to combat climate change.

At the same time, we suspect that as more investors support sustainable investing, they may prefer to invest in companies that are transparent in disclosing all areas of emissions. Ultimately, we believe consumers, investors and governments will demand more than lip service from companies. Instead, they’ll expect companies to take actionable steps to reduce the most significant part of a company’s carbon footprint – scope 3 emissions.

A journey, not a destination

The Lego example serves as a cautionary tale in the complex ESG landscape for which most companies are not well prepared. As more companies come under scrutiny for their entire carbon footprint, we may see more instances where well-intentioned sustainability efforts run into uncomfortable truths.

This calls for a nuanced understanding of sustainability, not as a checklist of good deeds, but as a complex, ongoing process that requires vigilance, transparency and, above all, a commitment to the benefit of future generations.

To see the original post, follow this link: https://theconversation.com/legos-esg-dilemma-why-an-abandoned-plan-to-use-recycled-plastic-bottles-is-a-wake-up-call-for-supply-chain-sustainability-214573

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Tags: accountability, Carbon Footprint, Climate Risk, corporate social reponsibility, corporate social responsibility, Corporate Value Chain, CSR, ESG, European Sustainability Reporting Standards, green marketing, Greenwashing, Lego, responsible brands, sustainability, sustainable branding, sustainable brands
Categories : Climate Change, corporate social responsibility, DEI, ESG, green marketing, reputation management, responsible brands, social responsibility, sustainability, sustainable branding, sustainable brands

‘The Climate Crisis Is, in Part, a Communication Crisis:’ Brands Must Walk Their Talk to Galvanize Consumers

7 10 2023

IMAGE: VIKTORIA SLOWIKOWSKA

From Sustainable Brands • Reposted: October 7, 2023

A new study by Magna, Teads and Project Drawdown confirms consumers are relying on brands to create a clear, tangible and compelling vision — backed by substantive action — to guide them toward more sustainable lifestyles.

Today, MAGNA — the investment and intelligence arm of IPG Mediabrands — released a study conducted in partnership with Project Drawdown and cloud-based, omnichannel advertising platform Teads to better understand consumer perspectives on sustainability, especially as it relates to the continued barriers that prevent more sustainable lifestyles.

Sustainability Speaks: Breaking the Barrier of Climate Communication explores how brands can help bridge these barriers and how advertisers can more effectively communicate their sustainability goals while also supporting brand growth.

MAGNA surveyed 9,112 people in the United States, the United Kingdom and Australia, and held five focus groups in the US. Along with echoing recent research from Sustainable Brands® and Deloitte on the most common, ongoing barriers to consumer adoption of more sustainable habits and lifestyles (expense and lack of access), the study found that despite these barriers, people remain motivated to ensure a better future — with 99 percent of people agreeing that they can be motivated to take sustainable action.

“The climate crisis is, in part, a communication crisis,” said Jonathan Foley, Ph.D., Executive Director of Project Drawdown. “We already have the solutions we need to turn things around; but we are still paralyzed by misinformation, fear and the lack of will to act. We need a clear and compelling vision to move forward — a vision of a better future, where we come together to stop climate change, and build a better world for all. That could change the world.”

Additional key findings confirm the imperative for brands to be part of the conversation: 77 percent of respondents said they wanted brands to take a stance on sustainability. Furthermore, 75 percent somewhat or strongly agreed that if brands took meaningful action on sustainability, it would have a tremendous impact on the environment; and 35 percent would be motivated to act, if they see brands have, too.

A brand that offers tangible, relevant data in advertising — such as a statistic on how much water was saved in manufacturing — scores better than ambiguous messaging. Defining sustainability itself, a broad term that can vary by product category, makes a difference in helping consumers align around a company’s actions.

The study also ranked which channels consumers favor more when receiving sustainability messaging. Advertising, at 66 percent, was the optimal channel; followed by social media (62 percent), newsletters (57 percent), and influencers and other brand representatives (52 percent).

But advertising itself is also in the hot seat, thanks to its until-recently-unchecked carbon footprint — initiatives such as Scope3 and Ad Net Zero have emerged to help ensure the climate impacts of the messengers no longer undermine their sustainability messaging.

“Sustainability practices are good for business, with innovation, transparency, and information key for brands to strengthen their customer relationships long term,” added Neala Brown, SVP of Strategy & Insights at Teads. “While brands should ease customer hesitations toward adopting a sustainable lifestyle and given advertising as an optimal channel for that messaging, we are simultaneously working with our brand partners to reduce their own digital carbon footprint with supply chain and media optimization via direct publisher relationships.”

Going forward, in addition to reining in the physical impacts of ad production, brands would do well to focus on two aspects of their messaging:

Authenticity and credibility — with heightened awareness and scrutiny of sustainability claims and sensitivity to greenwashing, brands must ensure both their communications teams and the content creators they partner with are versed and confident in the validity of the claims they espouse.
Broader target demographics — brands automatically limit the potential impact of their messaging when they make assumptions about which demographics are more easily engaged on sustainability topics; by considering these more carefully — and developing and marketing sustainable choices for all consumers, not just those thought to be most easily moved by sustainability claims — brands can ensure broader influence and impact.

The full study can be found here.

To see the original post, follow this link: https://sustainablebrands.com/read/marketing-and-comms/climate-crisis-communication-crisis-brands-walk-talk-galvanize-consumers

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Tags: accountability, corporate social reponsibility, corporate social responsibility, CSR, ESG, green marketing, Greenwashing, Magna, Project Drawdown, responsible brands, sustainability, sustainable branding, sustainable brands
Categories : Climate Change, corporate social responsibility, DEI, ESG, green marketing, reputation management, responsible brands, social responsibility, sustainability, sustainable branding, sustainable brands

Following The Data: Why Companies Should Prioritize ESG And Tips For Success

5 10 2023

Image: Getty

By Carolyn Berkowitz, Forbes Councils Member via Forbes • Reposted: October 5, 2023

In recent months, efforts to stop the enactment of environmental, social and governance initiatives and reporting by promoting false narratives have reached a fevered pitch. As a rule, executive business decisions should be driven by data and facts. And the data shows that ESG policies and practices are not only good for society but also good for business.

1. ESG practices result in bottom-line advantages.

Key data points supporting this conclusion include:

• Three-fourths of Americans believe companies need to positively impact society, the 2021 Porter Novelli Purpose Premium Index reported.

• Large U.S. corporations that best meet stakeholder needs “had a 4.5% higher profit margin, 2.3% higher return on equity and paid five times more in dividends,” according to research by JUST Capital and CNBC.

A KPMG survey found that 70% of U.S. CEOs said their ESG programs improved their companies’ financial performance.

2. Purpose helps companies win the ‘talent war.’

Long-term business success depends on attracting and retaining top talent. Even as the talent market fluctuates, there is growing evidence that the best employees join companies that are purpose-driven and remain loyal when their values align with the organization and they are contributing to the corporate purpose. The data cited below shows the correlation between purpose-driven initiatives and employee engagement, satisfaction and motivation.

• About 70% of potential employees are more likely to apply for and accept an offer from a socially responsible organization, according to a 2021 IBM survey.

• More than 40% of employees are “reconsidering their current job because their company is not doing enough to address social justice issues externally,” research by Porter Novelli found.

• A report by Citi (download required) said millennials are willing to forgo around 14.4% of their compensation to work at companies that are socially responsible.

3. ESG can help organizations mitigate risk.

Risk mitigation is a key component of corporate compliance requirements, performance measures and, ultimately, valuation. The impact of climate change is of growing concern for business continuity, and adhering to ESG reporting mandates in the European Union is required to compete globally.

• In 2020, a special report by Edelman said 92% of U.S. investors agree “a company with strong ESG performance deserves a premium valuation to its share price.”

• Volatility is higher for those with a poor ESG score when compared to those with high ESG scores.

• The European Union adopted a corporate sustainability reporting directive in 2022, with full compliance from global companies required by 2024.

4. ESG-focused brands build positive corporate reputations.

Building a positive reputation with key stakeholders is essential for a company’s growth. It enhances trust, customer loyalty and brand preference, which, in turn, leads to increased sales and profitability. A strong reputation also helps companies withstand crises and earn the trust of communities.

• A low ESG score can result in only a 10% willingness to buy, but a high ESG score can result in a 67% willingness to buy, according to a report by RepTrak (registration required), which analyzed data from its corporate reputation database.

• Research commissioned by Dotdash Meredith and Omnicom Media Group analyzed “the future majority,” a group defined in the study as “Black, Latina, AAPI women and LGBTQIA individuals 40 and under.” Nearly 90% of respondents said they will prioritize taking the time to “research brands, including their values and how they support the communities I care about.”

• Nearly 65% of consumers expect companies to talk about their behavior and impact on the world, research by FleishmanHillard found.

Getting Started With ESG

Despite the data-driven business case for ESG and CSR and its increasing importance to stakeholders, corporate executives are not sufficiently resourcing this function. Recent data from the 4th Annual CSR Insights Survey by the Association of Corporate Citizenship Professionals, where I’m CEO, offers insight. The data, from CSR and ESG professionals at nearly 149 leading companies, showed real-world consequences of constricting ESG resources in the current business environment: 86% of respondents said their responsibilities had increased over the past year, which led to longer hours for 61% of those surveyed, burnout for 50% and mental health concerns for 19%.

Amid a turbulent backdrop, businesses must keep sight of the inherent value of ESG and resource it appropriately. To get started:

1. Determine your CSR and ESG strategy.

One key step toward developing an effective strategy is to conduct a materiality assessment, or, for those who have already done so, revisit it with fresh eyes. These assessments identify and prioritize social and environmental issues critical to a company’s success and are aligned with stakeholder input. While traditionally associated with larger corporations, organizations of all sizes should routinely evaluate areas impacting their business significantly. Although not mandatory, a materiality assessment serves as a road map for prioritizing CSR and ESG initiatives.

2. Communicate in the language of your business.

In today’s landscape, it’s important to communicate about these efforts in ways that align with the company’s core language and values. Focus messages on the business’s unique expertise on the issue and the concrete positive impacts of the effort, e.g., how and why a communications company is providing broadband access in underserved communities and the impact of the results on education and economic opportunity.

3. Resource the strategy and programs for results.

Starving CSR and ESG efforts of the resources required to achieve intended outcomes is an invitation for risk. If initiatives aren’t adequately staffed or funded, the outcome leads to the potential for community criticism, employee ill will and political fodder to those who are intent on dismantling ESG. CSR and ESG are inexpensive functions. When resources are cut, impact diminishes because reporting and compliance take priority over strategy and effective execution.

To secure a more prosperous future for both business and society, businesses can use the data available to them and resource the functions within their organizations that are steering the strategies that center around sustainability and corporate responsibility.

Carolyn Berkowitz is President and CEO of the Association of Corporate Citizenship Professionals. To see the original post, follow this link: https://www.forbes.com/sites/forbesbusinesscouncil/2023/10/04/following-the-data-why-companies-should-prioritize-esg-and-tips-for-success/?sh=26cd5b886df5

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Tags: corporate social reponsibility, corporate social responsibility, DEI, ESG, Porter Novelli Purpose Premium Index, responsible brands, sustainable brands
Categories : corporate social responsibility, DEI, ESG, reputation management, responsible brands, social responsibility

Why Committing To Sustainability Is Critical For Today’s Businesses

4 10 2023

Photo: Getty Images

By Gajen Kandiah, Brand Contributor, Hitachi Vantara Perspectives via Forbes.com • Reposted: October 4, 2023

When we think of sustainability, of doing what we can in business and society to preserve and protect the environment, it’s easy to want to think of quick fixes; things we can do right now to solve the problem. We think in terms of products that we can buy to help, and products to avoid; processes to implement, and those to abandon. We want to solve the problem and move on to something else.

But sustainability is not a trend. It will not fade away or be replaced by a new trend. As such, our collective responsibility cannot fade. Operating sustainably is the new way of doing business. We must operate thoughtfully with an eye on how our decisions may impact those that come after us, down the road and into the future.

The concept is not new. I’ve always been fond of the adage, the world is not given by his fathers, but borrowed from his children.

As I wrote last November, despite the well-intentioned efforts of governments and international bodies, like the United Nations’ Climate Change Conference, industry need not wait for regulation to act on emissions, energy, and waste. We can, and many organizations have, act now to reduce and eliminate our carbon emissions, to increase our use of renewables, and to insist that our supply chains are aligned with our missions.

For our part at Hitachi, we are aggressively implementing initiatives to improve our environmental footprint, from our energy usage and emissions, all the way to the products and solutions we develop that are more eco-friendly than previous iterations. We are also expanding this work to involve our extensive partner ecosystem to ensure that everyone with whom we work is on the same sustainability page as we are. Our corporate goals are well documented, to be carbon neutral as a global company by 2030, and to be carbon neutral across our entire value chain by 2050. And while there is tremendous work being done, there’s much more to come.

Like many, I was heartened by the recent Global Electricity Report 2023 from the global energy think tank, Ember, that reported electricity generation was its “cleanest ever” in 2022, falling to a record low of 436 gCO2/kWh, due to dramatic growth in wind and solar generation around the globe. In fact, the report noted that more than 60 countries “now generate more than 10% of their electricity from wind and solar.”

The Future is Not Ours

As we spend Earth Day speaking of policies, programs, and targets to be more environmentally responsible, I encourage you to think of the potential value of all your programs on the future. When we ingrain sustainability into everything we do, with a view of the impact of our decisions on the next generation, it sets in motion actions for the next generation to replicate; momentum is generated and perpetuated, ad infinitum.

A little more than 100 years ago, Theodore Roosevelt said, “I recognize the right and duty of this generation to develop and use the natural resources of our land; but I do not recognize the right to waste them, or to rob, by wasteful use, the generations that come after us.”

The future is not ours, but it is our responsibility. And unless you haven’t been paying attention, our children, the next generation, are in many ways taking a more proactive leadership role in this area than we are. They are demanding action, and it is time for us to step up and meet the challenge.

Let us demonstrate to them, through decisive action, that we are listening and that we are committed to creating a better world for them. It is time to set aside short-term thinking and embrace a long-term approach that considers the implications of our actions on future generations.

Indeed, let us be inspired by the leadership of our children and work together to create a greener future. By doing so, we can ensure that we leave behind a legacy we can be proud of – a world that is healthy and sustainable.

For more on Hitachi Vantara’s eco-first approach to data centers, view here.

To see the original post, follow this link: https://www.forbes.com/sites/hitachi-vantara-perspectives/2023/10/03/why-committing-to-sustainability-is-critical-for-todays-businesses/?sh=e14e58f1d6e8

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Tags: accountability, corporate social reponsibility, corporate social responsibility, CSR, ESG, Global Electricity Re\port, green marketing, responsible brands, sustainability, sustainable branding, sustainable brands, UN Climate Change Conference
Categories : Climate Change, corporate social responsibility, DEI, ESG, green marketing, reputation management, responsible brands, social responsibility, sustainability, sustainable branding, sustainable brands

New Sustainability Expert Travel Certification For Travel Agents Launches

3 10 2023

By Kate Harden-England from travolution • Reposted: October 3, 2023

New free e-learning platform empowers the future of a responsible tourism industry

The ‘Sustainability Expert’ initiative was launched during the ANTOR Media Awards Gala Dinner in London.

The new free-to-use e-Learning platform provides a “convenient and easily accessible” resource for responsible tourism education and training worldwide.

It serves as a singular hub for the global travel industry, highlighting organisations, destinations and travel brands committed to environmental stewardship, cultural responsibility, and eco-conscious practices.

The hub, curated by Equator Global, enables individuals to attain the Sustainability Expert certification by successfully completing a minimum of four courses from the 28 free courses featured.

It is endorsed by leading travel and tourism players and underscores the collective responsibility of the worldwide travel industry in working together towards shared goals, in building a sustainable future.

Courses cover a wide spectrum of topics, including Costa Rica’s Pura Vida eco-tourism pledge, Switzerland’s Swisstainable programme and Finland’s Sustainable Travel objectives.

Participants will also be able to delve into Alaska’s conservation endeavours and explore the preservation investments made by AlUla, Thailand and Egypt to protect their timeless cultural treasures, among other topics.

Ian Dockreay, CEO of Equator Global and Travel Uni, said: “For the first time, travel and tourism professionals worldwide can gain recognition as advocates for this crucial initiative for free.

“By just investing their time in learning about the eco efforts of destinations and travel-related companies, they will be better equipped to advise and guide consumers in their holiday choices.

“With travellers increasingly prioritising sustainability in their travel decisions, it is imperative that those arranging their trips can provide informed and confident guidance.”

To see the original post, follow this link: https://www.travolution.com/news/new-sustainability-expert-travel-certification-for-travel-agents-launches/

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Tags: accountability, corporate social reponsibility, corporate social responsibility, CSR, Equator Global, ESG, green marketing, responsible brands, sustainability, sustainable branding, sustainable brands
Categories : corporate social responsibility, DEI, ESG, green marketing, reputation management, responsible brands, social responsibility, sustainability, sustainable branding, sustainable brands

Building an Economic Case for Sustainability Transformation

3 10 2023

Graphic: Vectormine/stock.adobe.com

By Karthik Balakrishnan from Supply and Demand Chain Executive • Reposted: October 3, 2023

Ultimately, sustainability-linked investments result in reduced liabilities, reduced risk of stranded assets, and reduced risk of regulatory backlash, and improved unit economics and supply chain resilience.

In recent years, corporate sustainability efforts have focused on measurement and reporting. We’ve heard the phrase “what gets measured gets managed” countless times and taken it to heart. The result has been a robust carbon accounting and reporting universe filled with tools that can estimate the emissions for every industry, and an alphabet soup of reporting standards. This result, however, hasn’t been particularly promising. Even companies with the most ambitious climate goals and robust measurement and accounting programs have had trouble cutting their emissions. It turns out that simply measuring something doesn’t mean it’s going to be managed. Measurement is an important first step for an organization to understand and prioritize sustainability efforts. However, sustainability is about the real-world impact that can only be achieved with real-world investments, not an endless cycle of measurement and reporting. Put another way, what gets measured might get managed if you can show that the upfront costs of sustainability are truly investments in a classical business sense, with benefits including ROI, customer retention and risk mitigation.

When your organization is part of a complex supply chain, achieving sustainability targets is made difficult because the investments needed to meet your sustainability goals often involve assets outside of your organization. In these cases, a business justification is especially important, since achieving your targets will only come from partnering with other organizations and showing them the benefits of either investing in their facilities on your behalf, or accepting direct investments for actions and equipment that they might not otherwise purchase.

The first step is to map the key outcomes that apply to your business that can be enhanced by sustainability- and ESG-linked investments. For example, a product’s unit economics can each be improved by changing designs to use less raw material, adjusting production dies and molds to waste less material, and switching to equipment which uses less fuel and is easier to maintain. An existing factory or distribution center can benefit from lower insurance costs by investing in solutions for climate resilience. Meanwhile, a brand-new factory can benefit from a lower cost of capital by investing in future-proof clean technologies that reduce the risk that the facility ends up as a stranded asset due to changing market demands or regulatory conditions.

In all of the examples above, the benefits of sustainability-driven efforts actually benefited the business as a whole. Instead of a green premium, these businesses would benefit from a green return.

As sustainable technologies improve and become more mature, these returns will only improve as well. Holistically studying the impacts of sustainability and ESG investments allows supply chain leaders to build a business case for sustainability that goes beyond marginal abatement curves. Simply focusing on minimizing the cost of sustainability is not a winning strategy when the cost of capital is high. Instead, it’s critical to show how sustainability-linked investments maximize return and positively impact financial outcomes. This is especially helpful when making a case for investment to a key supplier or manufacturer, who may be reluctant to make the process, material or equipment investments standing between you and your sustainability goals.

There is, of course, the elephant in the room. Is it even worth considering ESG and sustainability given all of the controversy and political turmoil surrounding the term? After all, a modern supply chain is fine-tuned, and ultimately performs best by minimizing all sorts of risk, especially those like political risks that live outside your control. The answer, surprisingly, is yes. There are several real unassailable trends that have gained momentum in the last couple of years. In the wake of the Inflation Reduction Act (IRA), passed in August 2022, 80% of money allocated by the bill for clean energy and sustainability projects has gone towards Congressional districts represented by individuals who publicly oppose ESG messaging. Deployments of large, utility-scale solar projects follow the annual resource (how much sunlight is available in a given year) independent of political boundaries. And regardless of the political sentiment, over two-thirds of consumers consider sustainability positively when making at least some of their purchase decisions — nearly sixteen times the number that are influenced negatively by sustainability. Fundamentally, the science and economics of sustainability are sound, and while reporting frameworks and standards may change, the real-world drivers which led to the creation of ESG remain. The bottom line is that while the term “ESG” is facing backlash and the name will change as it has in the past, these principles are being “hardwired” into financial strategies in all but name at full speed. The ROI of sustainability not only shows up at the level of the individual initiative, but increasingly contributes to the overall financial position and investability of the company as a whole.

Ultimately, sustainability-linked investments result in reduced liabilities, reduced risk of stranded assets and reduced risk of regulatory backlash, and improved unit economics and supply chain resilience. Quantifying and clearly communicating these financial and performance benefits, on top of the pure ESG benefits, is critical to move beyond measurement and reporting to achieve real impact.

To see the original post, follow this link: https://www.sdcexec.com/sustainability/carbon-footprint/article/22874707/actual-building-an-economic-case-for-sustainability-transformation

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Tags: accountability, corporate social reponsibility, corporate social responsibility, CSR, ESG, green marketing, responsible brands, Supply Chain, sustainability, sustainable branding, sustainable brands
Categories : Climate Change, corporate social responsibility, ESG, green marketing, reputation management, social responsibility, sustainability, sustainable branding, sustainable brands

How to Market to the Increasingly Socially Conscious Customer

30 09 2023

Graphic: U.S. Chamber of Commerce

By Gino Sesto from Entrepreneur.com • Reposted: September 30, 2023

Key Takeaways

Socially conscious shopping is more than a trend; it’s a movement shaping the current consumer landscape.
Brands have unique opportunities to highlight their commitment to social responsibility.

In today’s dynamic retail environment, there’s a significant shift occurring in the way brands approach their customers. Historically, many industries prioritized competitive prices and discounts. However, the modern consumer is evolving, and the marketing world must follow suit. Brands are now transitioning away from emphasizing price to highlighting values, beliefs and overarching ethos. This shift from cost awareness to conscious consumerism redefines the marketing approach across sectors.

The emergence of the socially conscious consumer

Socially conscious shopping is more than a trend; it’s a movement shaping the consumer landscape. Customers increasingly make purchasing decisions based on the broader impact of their choices, whether environmental sustainability, ethical manufacturing or social justice.

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Recent surveys like the Harris Poll show these changes in consumer spending habits happening in multiple industries. However, while price remains a dominant factor for many consumers, it’s not the sole consideration anymore. Although numerous shoppers still prioritize cost, a growing group is willing to pay a premium for products aligned with their values.

Take fashion as an example. Data reveals that while 22% of shoppers now consider where apparel is manufactured, 17% evaluate brands based on their sustainability initiatives. Fifteen percent examine a brand’s attitude to social issues, and 13% consider its employment practices. While these figures might appear modest, they indicate a growing inclination toward value-driven, socially conscious shopping. As modern shoppers progressively align spending habits with their values, brands that adapt to this approach will reap the benefits of a loyal and expanding customer base.

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Crafting marketing strategies for diverse audiences

Successful brands are those that understand their audience’s nuances. It’s crucial to segment the audience not just by age or gender but by values, beliefs and priorities. For older generations, emphasizing cost-effectiveness and quality remains key. While baby boomers focus on price and quality, younger generations like GenZ-ers and Millennials are more inclined to consider a brand’s values and beliefs. For this generation, the key lies in the tangibles. Brands must emphasize cost-effectiveness without compromising on quality. Promotions, discounts, and loyalty programs are effective marketing tools, while Gladly’s 2022 Customer Expectations Report indicates the importance of the entire shopping experience. Convenience also makes a difference through easy returns, a seamless online shopping experience, or efficient customer service. Boomers are looking for value, but they also want ease and simplicity.

This doesn’t mean cost isn’t essential for younger consumers, but they’re more likely to pay more for products and services that align with their values. Younger audiences and people of color are even more likely to align shopping habits with their values. For these audiences, shopping isn’t just a transaction; it’s a statement. Quality, style and, most importantly, a brand’s position on social and environmental issues have all become equally significant. Brands must integrate values into the shopping experience by showcasing their efforts transparently. Clear stances on social issues and ethical employment practices are effective strategies. Collaborations with influencers who support their values, limited edition “cause” collections, or even a percentage of sales going to a social cause can also be successful

Harnessing digital channels for socially conscious marketing

In the current digital age, brands have unique opportunities to highlight their commitment to social responsibility. Digital marketing platforms allow companies to convey their values, initiatives, and beliefs transparently. Research from The Roundup shows consumers are becoming increasingly environmentally conscious, with many actively seeking out sustainable products.

This shift is supported by a 2021 study that showed 45% of consumers are willing to pay a premium for sustainable products. Additionally, 52% of the respondents emphasized the importance of purchasing from companies whose values align with theirs, marking a significant increase from 43% in 2019. Recent findings from the ninth annual Conscious Consumer Spending Index also showed a 25% surge in socially responsible spending in 2021 compared to the prior year. This data underscores the shift in consumer behavior, where decisions are influenced not just by product quality or cost but also by a brand’s ethical and societal values.

Digital platforms, especially social media, have become the epicenter for brands to showcase their alignment with social causes, sustainable manufacturing processes, and ethical sourcing. By integrating these values into their marketing strategies, brands can foster deeper connections with their audience, building a trustworthy and value-driven image. As consumer preferences continue to evolve, the significance of socially conscious marketing in nurturing brand loyalty and fostering trust becomes even more evident.

Staying nimble in a dynamic landscape

Change is the only constant in the retail world. Brands must remain adaptable as consumer preferences evolve, influenced by global events, cultural shifts, and generational differences. Success lies in understanding and catering to the modern, socially conscious consumer. Companies must balance offering cost-effective solutions and championing values, ethical practices, and social responsibility. As brands navigate this new terrain, those who genuinely connect with their audience’s values will be the ones to thrive.

To see the original post, follow this link: https://www.entrepreneur.com/growing-a-business/how-to-market-to-the-increasingly-socially-conscious/459456

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Tags: accountability, corporate social reponsibility, corporate social responsibility, CSR, ESG, green marketing, Harris Poll, responsible brands, Socially Conscious, sustainable branding, sustainable brands
Categories : Climate Change, corporate social responsibility, DEI, ESG, green marketing, reputation management, responsible brands, social responsibility, sustainability, sustainable branding, sustainable brands

Coalition Connects Brands With Schools Struggling to Teach Sustainability

29 09 2023

Students work together on an assignment about ecosystems and environmental impacts during a seventh-grade science class in December 2020. While more schools are introducing sustainability curriculum, some are struggling to get started. (Image credit: Allison Shelley for EDUimages via Flickr)

By Gary E. Frank from Triple Pundit • Reposted: September 29, 2023

Elementary and secondary school teachers want to teach about sustainability, yet many lack the time, resources, and in particular, the tools to do so effectively. For those in the United States, help is on the way.

By 2030, the Sustainability Education Coalition aims to give more than 10 million K-12 students access to educational resources that will help them make informed decisions and take responsible actions when it comes to sustainability.

It’s a first-of-its-kind initiative aligned with the United Nations Sustainable Development Goals and launched by Discovery Education, a leader in developing digital content for K-12 teaching.

“The need for comprehensive sustainability education has never been more pressing,” Amy Nakamoto, Discovery Education’s general manager of social impact, said in a statement. “Recent statistics reveal a concerning trend: While the majority of teachers recognize the importance of teaching students about climate and sustainability, only half of them are currently addressing these vital topics within their classrooms.”

Three factors hinder teaching sustainability to K-12 students in the U.S., Natamoto said. First, some teachers have difficulty figuring out where classes on sustainability belong in their curricula.

“It could be in science classrooms, it could be in social studies classrooms, it could be in blended STEM [science, technology, engineering and math] classrooms. I think currently, teachers are having a hard time figuring out where it fits in the school day,” Nakamoto told TriplePundit.

Others feel they do not know how to teach sustainability topics, she said. Teachers need and want more support in this area, according to a report from the Smithsonian Science Education Center. Of the teachers surveyed, 69 percent said professional development on sustainability would be helpful.

“They want to be able to talk about this with their students, but they don’t know how,” Nakamoto told us. Lastly, while school administrators believe sustainability is a critically important topic to teach, they don’t know how to get the resources to do so, she said.

The Sustainability Education Coalition aims to solve all three problems. It uses insight and expertise from partner companies to create digital content for students to learn from alongside the lessons on the Discovery Education Experience learning platform, Nakamoto said. Support is specifically focused on providing STEM and sustainability education resources to school districts that would struggle to access them otherwise.

“Another way the collaboration happens, in addition to the curriculum and the content, is through strategic thought leadership that takes educators and administrators and puts them in the same rooms as these leading companies,” Nakamoto said. “So [the companies] can understand the challenges of schools to talk about these topics, and the schools and administrators can understand how companies are wrestling with these topics in more real-time.”

On the other side, company partners benefit from joining the coalition through employee engagement, Nakamoto said. Employees want to see their companies investing in initiatives that align their corporate mission with a local community mission.

“Employee engagement is leveraging the employees of our partners to be part of the story. So, we are telling their stories, we are filming them and the solutions they’re doing,” Nakamoto said. “We deeply believe in showing the people who are the leaders in this movement to the students in classrooms across the U.S.”

So far, Subaru of America, LyondellBasell, Nucor, Honeywell, and the National Environmental Education Foundation have partnered with the coalition. Each company that joins helps to unlock access to a complete library of STEM and sustainability education resources for some critical communities, Nakamoto said.

“[Sustainability] is a topic that everybody is both wrestling with and evolving with at the same time,” she concluded. “We have a big vision to grow this to represent multiple sectors, multiple interests because the sustainability story is an everyday story that we all experience just walking through the world. In order to tell that story to students, we need to be influenced by all of the sectors that are engaged in sustainability at their corporate and community level.”

To see the original post, follow this link: https://www.triplepundit.com/story/2023/sustainability-education-k-12/784606

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Tags: accountability, corporate social reponsibility, corporate social responsibility, CSR, Discovery Education, ESG, green marketing, responsible brands, sustainability, Sustainability Education Coalition, sustainable branding, sustainable brands
Categories : Climate Change, corporate social responsibility, DEI, ESG, green marketing, social responsibility, sustainability, sustainable branding, sustainable brands

California’s Climate Risk Disclosure Rules Are the Talk of Climate Week

27 09 2023

California Gov. Gavin Newsom joins New York Times correspondent David Gelles on stage at Climate Week, where he announced he would sign a pair of recently passed bills that mandate climate disclosure from large companies operating in the state. (Image: The Climate Group/Flickr)

By Mary Mazzoni from Triple Pundit • Reposted: September 27, 2023

World leaders, business executives and activists are back in New York City for Climate Week and the United Nations General Assembly — and everybody’s talking about California.

In case you missed it: Last week California legislators approved a pair of bills that require all large public and private companies operating in the state to disclose their greenhouse gas emissions to investors and the public. Business leaders organized by the sustainability nonprofit Ceres came out in support of the bill before it passed. They say their progress in tracking and disclosing the full scope of their emissions proves it’s possible for other companies to do the same.

As lawmakers and business coalitions enjoy a victory lap at Climate Week, we’re taking a closer look at the landmark legislation and the ripple effects it could send well outside the Golden State.

Why corporate climate disclosure matters

“There was a billion-dollar weather and climate disaster event every four months in our country in the 1980s. By 2010, there was one every three weeks,” Mindy Lubber, CEO and president of Ceres, said at a press conference on Tuesday. “This year, we’ve experienced more than a billion-dollar event every two weeks.”

Indeed, extreme weather cost the United States nearly $40 billion in the first eight months of 2023 alone. But the impacts these disasters and other climate disruptions have on corporate bottom lines is less understood, because many companies don’t calculate it. “People are operating in the dark,” Lubber said. “I can tell you of the 700 investors we work with, they want to understand: What are the risks from climate [change], and what are the opportunities? They cannot make a decision about building a portfolio without adequate information.”

In 2022 surveys, 70 percent of U.S. investors said they would support mandatory climate disclosure in the U.S.

What the California climate disclosure rules require

The two recently passed bills — Senate Bill 253 (SB 253) and Senate Bill 261 (SB 261) — are on Gov. Gavin Newsom’s desk, and he confirmed this week that he will sign them. The bills require the California Air Resources Board to develop rules that mandate public and private companies with annual revenues exceeding $1 billion to disclose their greenhouse gas emissions.

Crucially, the rules will cover emissions created upstream and downstream in a company’s value chain (known as Scope 3). Though Scope 3 comprises around 70 percent of corporate emissionson average, it’s left out by many companies that currently disclose.

The rules will apply to around 5,500 companies doing business in California, lawmakers said. Companies will be required to disclose emissions from their direct operations (known as Scope 1) and those from the electricity they purchase (known as Scope 2) by 2026. Mandatory Scope 3 disclosure will come into force a year later, with financial penalties waived for three years as a transition period.

“SB 253 does not dictate how they should reduce their carbon emissions. But by making clear that within a couple of years these emissions are going to become public, the corporations have a huge incentive to innovate to reduce those emissions,” said California state Sen. Scott Wiener, who represents San Francisco and parts of San Mateo County. “We’re going to see in a few years who’s walking the walk and who’s just talking the talk. And I hope that after a few years before the implementation, the companies that are walking the walk are going to be a much higher number than they are today.”

attendees at climate week 2023 clap as california governor gavin newsom says he will sign bills that mandate climate disclosure — Attendees are all smiles during California Gov. Gavin Newsom’s remarks at Climate Week. *(Image: The Climate Group/Flickr)*

Insiders predict a race to the top that goes way beyond California

Lawmakers say Californians will benefit directly from the new climate disclosure rules. “As a member who currently represents environmental justice communities who live near the harbor — who are seeing the emissions and feeling them every single day, the impacts of bad air quality, as well as the severe, tangible impacts of climate change — this will deeply, deeply benefit my constituents and constituents across the state of California,” said state Sen. Lena Gonzalez, who represents Long Beach and Southeast Los Angeles.

But given California is the fourth largest economy in the world, the implications could stretch far beyond its own borders. “As disclosure becomes real, some companies are going to step up, clean up and really lead, and other companies are going to be forced to do the same,” said Mary Creasman, CEO of California Environmental Voters, which lobbies in support of climate and environmental legislation in the state. “There’s going to be pressure out there like we’ve never seen to change business-as-usual.”

The fact that thousands of multinational companies will be compelled to disclose their emissions may also make it easier for other markets to pass similar legislation. “SB 253 marks a major advancement in detailed emissions disclosure, potentially revolutionizing corporate responsibility in combating climate change for the world, not merely California,” said Kentaro Kawamori, CEO of the carbon accounting firm Persefoni. “As the global community confronts the pressing need for climate action, California’s leadership might inspire comparable efforts in other states and countries.”

Markets including the U.K., Japan and the European Union already moved to mandate climate disclosure within the past two years. While it’s too early to say whether those rules amounted to this type of sea change, early evidence indicates it is a likely outcome. “We don’t have a lot of data yet as to how it has changed things,” Lubber told us. “But we do know when a company … makes a declaration and commitment to doing it — and that’s public and you’re showing how you’re going to do it and you’re accountable — it drives behavior change. And it probably does that as well as anything else I can think of.”

What about the SEC?

Last year the U.S. Securities and Exchange Commission (SEC) issued draft language for mandatory climate disclosure rules that would apply to all large publicly-traded companies operating in the country. The release date for the final rule has been pushed back several times and is now expected toward the end of this year. It’s also still up in the air as to whether the final SEC rule will include mandatory reporting of Scope 3 emissions.

But if and when the SEC does mandate climate disclosure, companies will be well positioned to translate the work they’re doing in California to comply with the federal rules.

“For us as an industry association, it’s very important to have harmonization among reporting requirements,” said Chelsea Murtha, director of sustainability for the American Apparel and Footwear Association, which represents more than 1,000 brands and came out in support of the legislation. “We worked with Sen. Wiener and Ceres to get language in the bill that made sure that if you were reporting to the SEC and that was a substantially similar disclosure, it would work in California. We were really glad to see pieces like that come together and make this a process that was really designed to help businesses succeed.”

The bottom line: Climate disclosure won’t fix it, but it’s a major step forward

Disclosure won’t solve our climate problems, but in the spirit of sunlight as a proverbial disinfectant, transparency is a crucial piece of the puzzle. “There’s no doubt that it’s only a first step,” Lubber told us. “Once companies analyze their risk and measure it, they can then manage it. It’s very hard to come up with a climate plan to act without knowing what the problem is.”

Ceres provides toolkits and direct consultation to help companies translate the data from their disclosures into time-bound climate transition plans, and it will continue to do so as California’s rules come into force, Lubber said.

“The public, investors and regulators want to know what is the risk to a company, and that’s why they have been calling for climate risk disclosure,” she told us. “Good information is just that — not the panacea, but it provides the base to make smart decisions about managing carbon emissions.”

To see the original post, follow this link: https://www.triplepundit.com/story/2023/california-climate-disclosure-rules/783851

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Tags: accountability, Climate WEek, corporate social reponsibility, corporate social responsibility, CSR, ESG, green marketing, responsible brands, SEC, sustainability, sustainable branding, sustainable brands
Categories : Climate Change, corporate social responsibility, DEI, ESG, responsible brands, social responsibility, sustainability

The Arrival of Mandatory Corporate Sustainability Reporting

27 09 2023

By Steve Cohen from the Columbia Climate School • Reposted: September 27, 2023

To paraphrase the management icon Peter Drucker, you can’t manage something unless you measure it. Without measurement, you can’t tell if management’s actions are making things better or worse. The importance and seriousness of sustainability management requires the development of generally accepted sustainability metrics. Just as financial accounting requires agreement on terms and reporting requirements to facilitate independent auditing, sustainability requires the same level of precision. Publicly traded and owned corporations are under pressure from investors to report environmental risks, and more and more companies are disclosing environmental and social governance (ESG) measures.

A recent Wall Street Journal survey of corporate sustainability officers indicates that while more companies are disclosing sustainability metrics, there is confusion about the measures and a demand for uniform reporting requirements. According to Journal reporter David Breg:

“Public companies in the U.S. are increasingly disclosing sustainability information, but many say they find it a challenge to report fundamental climate data that many regulators around the globe likely will require under incoming mandatory reporting standards. Nearly two-thirds of respondents said their company was disclosing environmental, social and governance information, up from 56% in the prior year, according to the annual survey of sustainability officials that WSJ Pro conducted this spring.”

The reporting challenge is due to imprecise measures and a lack of experience collecting and reporting these data. That challenge will be met by sustainability professionals trained in measuring greenhouse gasses and conducting life cycle analyses. In Columbia’s MS in Sustainability Management program, we offer courses in each of those areas, and before long, hundreds of our graduates will be helping corporations meet their reporting requirements.

The U.S. Securities and Exchange Commission has been revising its proposed sustainability reporting requirements in response to a deluge of comments and has delayed issuing those requirements, once expected last spring. The political calendar of a national election next year creates extreme pressure to issue those standards this fall, and currently, they are expected in October. There will certainly be legal challenges to whatever rule is issued, but to the extent that the rules connect environmental risk to financial risk, they are well within the SEC’s enabling legislation. Additionally, the SEC is not the only body working on uniform sustainability metrics. Again, according to Breg:

“Regulators around the globe are finalizing rules that would require companies to publish standardized information after years of patchy voluntary ESG reporting based on a host of frameworks. California’s governor has said he would soon sign that state’s requirements into law. The U.S. Securities and Exchange Commission’s rules are expected later this year. European regulations are already in place and many other countries are also working on standards. The International Sustainability Standards Board hopes its climate framework, completed this past summer, becomes the global baseline.”

Assuming the SEC rules survive the ideological onslaught they will face, it is likely, just as with financial accounting, that an American rule would be highly influential and, over time, would become a global standard. If the extreme element of America’s right wing dominates the debate over disclosure and overturns the rules in the conservative Supreme Court, U.S. corporations operating globally would be subject to foreign or global reporting requirements that they would have little hope of influencing. The realpolitik of sustainability reporting requirements may convince American corporations to focus their attention on influencing rather than overturning reporting requirements. The ideological and dysfunctional side of American national politics will certainly result in court challenges to the SEC rule, but the seriousness of the effort and its impact is unknowable.

The initial SEC rule is more limited than many of the other frameworks under development and focuses narrowly on carbon disclosure. My guess is that carbon emissions from a company’s supply chain will be omitted or optional in the final disclosure rule. My view is that this initial rule is a foot in the door and, like financial accounting, will evolve over time.

A growing number of publicly traded companies and even many privately owned companies are disclosing sustainability metrics. The ideologues labeling this as “woke” management fail to understand the degree to which these measures are indicators of effective and sophisticated management. ESG measures do not drive out financial indicators, they are, in fact, correlated with financial success. The principal concerns of a private firm do not change under sustainability management. They remain profit, market share, and return on equity. But modern organizations recognize that they are operating on a more crowded, interconnected, and warming planet. These facts of organizational environments require that they manage their environmental, social, and community impacts as a part of routine organizational life.

In addition, modern organizations compete for talent, and that means that workers have influence over management behavior. Young employees care about a company’s ESG performance. The post-pandemic push for hybrid work arrangements is ample evidence that top-down management is no longer possible, and organizations must respond to employee preferences.

Corporations operate in a regulated environment. That is why they have in-house counsel and engage outside law firms on a regular basis. When employees are fired or laid-off it is not unusual for them to sue their ex-employer. An American corporation operating nationally must understand state law and even local ordinances to successfully function. Companies operating globally must understand the rules of other nations. Over 10,000 non-European companies are subject to the European Union’s new ESG reporting requirements. About a third—or over 3,000—are U.S. corporations. This regulatory environment is normal and expected and fully integrated into decision-making in modern corporations. The free market is a relative and not absolute concept. There has never been and will never be a totally free market since that is akin to anarchy. An indicator of a successful company is its ability to navigate its regulatory environment while achieving its financial goals. The widespread and growing voluntary disclosure of sustainability metrics is happening in anticipation of government regulation but also in response to investor, customer, and employee demands.

But the problem with voluntary disclosure is that the measures they use do not enable investors to compare one company’s environmental risk to another, and the disclosures are not audited. Even worse, some of the NGOs that help companies measure and report sustainability are paid by the companies they report on, so these ESG reports might be fiction, and we’d never know. Uniform disclosure metrics are urgently needed. Only the SEC, with its gatekeeper function to the public capital marketplace, has the power to develop and impose standard reporting and audit requirements.

The move to decarbonize our economy will continue to be quietly and, at times, visibly opposed by fossil fuel interests. But they are increasingly unable to counter the facts of our warming planet. They will persist and, as Mike Bloomberg’s recent initiative recognizes, will shift their emphasis from burning fossil fuels for energy to utilizing them for plastics and other petrochemicals. Bloomberg is spending $85 million to block chemical plant siting as part of his effort to reduce global warming. If petrochemical plants were required to measure and report on their air pollutants, they might well be motivated to learn how to reduce those emissions while producing what they are selling. It’s easy to see why they might oppose reporting requirements, but if the alternative is to fight siting wars with local community groups, it might be in their financial interest to measure, report, and reduce emissions.

Sustainability metrics and indeed sustainability management have finally arrived. For those of us who have been working for well over a decade to develop these practices and this profession, this is welcome but not a surprise. The climate crisis modeled and predicted in the final decade of the twentieth century is now with us. The biodiversity loss feared has also arrived. I continue to believe that we can develop a productive and growing economy without destroying our home planet. It takes brainpower, ingenuity, and technology, but most of all, our attention and concern. Carbon disclosure is a critical step in carbon management. Standardized sustainability metrics are a crucial step in realizing the vision of sustainability management.

To see the original post, follow this link: https://news.climate.columbia.edu/2023/09/25/the-arrival-of-mandatory-corporate-sustainability-reporting/

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Tags: accountability, corporate social reponsibility, corporate social responsibility, CSR, ESG, EU CSRD, green marketing, responsible brands, SEC, sustainable branding, sustainable brands
Categories : Climate Change, corporate social responsibility, ESG, reputation management, responsible brands, social responsibility, sustainability, sustainable branding, sustainable brands

Luxury To Responsibility: Hospitality’s Journey Towards Sustainability

25 09 2023

Graphic: Cambro

Balancing luxury with the imperative of sustainability presents an ongoing dilemma. The challenge lies in finding a harmonious path that doesn’t compromise customer satisfaction. Achieving this delicate balance requires a multifaceted approach. By Manthati Sai Kiran from Business World • Reposted: September 25, 2023

The hospitality industry is known for its exceptional services. Luxury and facilities. The sector is now not only known for creating exceptional experiences for its guests but also for driving positive change. This sector presents unique opportunities and challenges.

Similar to many other industries, the hospitality sector is committed to advancing sustainable practices. But it has faced considerable adversities, particularly due to the impacts of the COVID-19 pandemic. As it looks ahead, sustainability cost stands as one of the challenges.

In mathematical terms, the hospitality industry contributes approximately 11 per cent of global carbon emissions and it is expected to grow by 85 per cent over the next few years. The growth comes at a cost and it involves a high environmental impact, including increased water usage and the generation of disposable and non-disposable waste. Implication – more emission of carbon footprint.

In a recent panel discussion, industry leaders shared their strategies and best practices for addressing various issues, minimising food waste, sustainability initiatives, and inclusive and active engagement with local communities. These collaborative efforts demonstrate the industry’s commitment to making a positive impact while navigating the complexities of luxury and sustainability.

Gaurav Sinha, Hotel Manager, JW Marriot said “Sustainability is not just a path we aspire to explore as an industry, but a responsibility we embrace. Our guests, play a pivotal role alongside with us in giving back to society and preserving our precious natural resources. Through dedicated practices and innovative equipment, we aim to make a meaningful contribution. Tonight, as our conversation unfolds, we look forward to discussing these vital steps towards a brighter, more sustainable future”.

HC Vinayaka, VP Technical, EHS & Sustainability, ITC Hotels, shared strategies for minimizing food waste, from removing dustbins in cafeterias to implementing programs where food is measured every time it is thrown and target food wastage reduction year-by-year plans.

He strongly believes, educating management teams, and fostering a shared commitment to sustainability are the cornerstones to tackling food waste.

Manish Garg, General Manager, Hilton and Hilton Garden Inn Bengaluru Embassy Manyata Business Park, shared inclusive practices, that he led in his organisation. He has taken steps to include specially-abled individuals in the workforce, recognizing the importance of diversity and inclusivity. However, it’s not just about hiring, it’s about fostering an environment where everyone can thrive. This means equipping ourselves and our teams with the skills and understanding needed to work effectively with differently-abled colleagues. It’s about learning sign language, adapting communication methods, and ensuring safety measures are inclusive.

“In my experience, the biggest challenge lies in ongoing training, where we continuously strive to improve our communication and support for our specially-abled team members. In the hotel industry, there are diverse roles, such as operators, where physically challenged individuals can excel. It’s about creating an environment where they not only have a job but also feel valued and motivated to come to work, just like any other team member”, he added.

To see the original post, follow this link: https://www.businessworld.in/article/Luxury-to-Responsibility-Hospitality-s-Journey-Towards-Sustainability/24-09-2023-492476/

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Tags: accountability, corporate social reponsibility, corporate social responsibility, ESG, green marketing, hospitality, ITC Hotels, responsible brands, sustainability, sustainable branding, sustainable brands
Categories : Climate Change, corporate social responsibility, ESG, green marketing, reputation management, responsible brands, social responsibility, sustainable branding, sustainable brands

Greenhushing: Is Silence Hindering Sustainability?

24 09 2023

Unlike greenwashing, a quieter phenomenon raises concerns about transparency and authenticity. By Patricia Costinhas from impakter.com • Reposted: September 24, 2023

In the world of corporate sustainability, it’s not always about what companies proudly proclaim; sometimes, it’s the hushed secrets they keep that reveal their true shades of green. You’ve probably heard of greenwashing before, but now there is a subtler player lurking in the shadows: greenhushing.

While greenwashing wears its false eco-badges loud and proud, greenhushing prefers to stay in the background, quietly concealing its true colors. But make no mistake; silence can speak volumes. It raises questions about companies’ transparency, accountability, and their true sustainability efforts.

What is Greenhushing?

Though not a term that rolls off the tongue as easily as greenwashing, greenhushing has been growing in popularity. In essence, it revolves around companies deliberately opting to keep their environmental and social credentials discreet, almost as if they are hushing their sustainability efforts. Greenhushing involves downplaying or conveniently omitting mention of a company’s environmental initiatives.

Now, you might wonder, isn’t modesty a virtue? Indeed, in the realm of corporate sustainability, there is merit in humility. However, the practice of greenhushing raises a cause for concern when it comes to sustainability communication. Companies that embrace greenhushing may aim to convey that they are committed to sustainability without making a fuss about it. Yet, by choosing to remain vague and ambiguous, they can inadvertently give the impression that their environmental efforts are more substantial than they truly are.

his subtle approach to sustainability communication has its drawbacks, as it can obscure the reality of a company’s emissions and sustainability initiatives. Furthermore, it opens the door to sophisticated greenwashing tactics, which exploit this hushed narrative to create a façade of environmental responsibility.

Measuring Sustainability

Assessing a company’s commitment to sustainability in today’s corporate world can be a tough task. While financial metrics enjoy well-established and standardized criteria, the same cannot be said for sustainability metrics, which are often kept hidden.

Numerous organizations, frameworks, and industry groups within the business landscape have their own sets of reporting guidelines. This diversity of standards results in a fragmented sustainability landscape, making it challenging to compare how businesses fare in terms of sustainability targets and environmental credentials.

Then there’s the commonly designated ESG reporting field, a trio encompassing Environmental, Social, and Governance aspects. This reporting framework seeks to gauge a company’s commitment to sustainability, social well-being, and upholding ethical standards. However, it now finds itself in middle of growing scrutiny and criticism within the corporate world.

ESG Metrics and Growing Criticism

Quantifying social impact and ethical governance is no easy feat, and the absence of robust regulatory oversight has raised concerns about the relevance of ESG reporting. Many companies grapple with how to measure their environmental impact and fulfill their sustainability targets, adding to the complexity of the situation.

Last year, Tesla CEO Elon Musk made headlines by publicly denouncing ESG, going as far as labeling it a “scam.” This declaration came after Tesla’s removal from the S&P 500 ESG Index, a move that prompted Musk to voice his discontent on Twitter. He suggested that the integrity of the index provider had been compromised, pointing out the irony of oil giant Exxon Mobil retaining its top-10 position while his electric car company was removed from the list altogether.

Then there is the case of rampant greenwashing. Without clear-cut or standard sustainability reporting metrics, what we find is a breeding ground for corporations to exaggerate or falsify their initiatives.

The new EU CSRD Directive will make ESG reporting mandatory from January 2025. This means companies should start to collect their data from January 2024. Starting from larger companies and then later SMEs everyone will have to report on their sustainability efforts.

Motivations Behind Greenhushing

To truly grasp why organizations choose the path of greenhushing, we must first understand the driving forces behind it.

Resource Constraints

One significant factor in the greenhushing equation is resource constraints. Imagine a smaller company with limited manpower and budget resources. When they start trumpeting their sustainability achievements, they can quickly find themselves overwhelmed with demands for more data, additional proof, and numerous reports. These resource limitations can swiftly transform the green spotlight into a glaring interrogation lamp. Consequently, some organizations choose to maintain discretion as a shield.

Regulatory Costs

Navigating the labyrinth of regulations can be expensive, particularly for companies seeking to solidify their green credentials. The fear of incurring regulatory fines due to inadvertent missteps acts as a potent deterrent. Therefore, some organizations opt to remain under the radar until they are absolutely certain they can meet all regulatory requirements. Some companies prefer quiet, prolonged testing of their green initiatives before making grand announcements. This approach helps them avoid both the financial and administrative costs associated with compliance.

Shielding from Scrutiny

By selectively revealing their sustainability efforts, organizations can avoid intense scrutiny and accusations of greenwashing. Companies making exaggerated or false green claims not only risk reputational damage but also potential legal consequences. Thus, through greenhushing, firms can remain unnoticed by watchful eyes. An example is the recent accusation against global banking giant HSBC. They faced allegations of greenhushing when they downgraded funds exclusively invested in sustainable assets to those including environmental or social factors, without necessarily targeting a sustainable outcome. While the company claimed compliance with EU regulations, critics viewed it as an attempt to evade investor scrutiny.

Taking a critical stance on these motivations for greenhushing is vital. While resource constraints and regulatory costs are valid concerns, they should not excuse a lack of transparency. In an era where consumers and stakeholders demand responsible investment decisions, underreporting sustainability efforts can backfire. Some may inadvertently damage trust and credibility in their attempt to shield themselves from scrutiny.

The Sustainability Imperative

All things considered, sustainability rests on transparency and accountability. It goes beyond marketing or shielding from criticism. Despite ESG criticism, customers now focus on product carbon footprints, integral to their choices. This awareness drives firms to adjust emissions goals and prioritize strong sustainability credentials in their climate strategies.

Ultimately, the path towards sustainability is far from silent. By wholeheartedly embracing transparency and accountability, organizations can not only avert allegations of greenwashing but also make substantive contributions to the collective mission of combatting climate change and addressing environmental challenges.

To see the orignal post, follow this link: https://impakter.com/greenhushing-is-silence-hindering-sustainability/

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Tags: accountability, corporate social reponsibility, corporate social responsibility, CSR, ESG, EU CSRD Directive, green marketing, Greenhushing, Greenwashing, responsible brands, sustainability, sustainable branding, sustainable brands
Categories : Climate Change, corporate social responsibility, ESG, green marketing, lack of trust, reputation management, responsible brands, social responsibility, sustainability, sustainable branding, sustainable brands

Intrepid Travelers Can Now Understand Their Adventures’ Carbon Impacts

22 09 2023

Image: Intrepid Travel

From Intrepid Travel via Sustainable Brands • Reposted: September 22, 2023

Intrepid has launched one of tourism’s most comprehensive carbon-labeling initiatives, alongside new research that shows consumer demand for better transparency and understanding their personal impacts.

Today, Intrepid Travel unveiled carbon labels on over 500 itineraries, including its top 100 trips, with plans to continue measuring and disclosing the emissions of every trip. The labels, which appear on individual tour pages, will tell travelers the carbon footprint of each Intrepid tour — providing greater transparency as the company deepens its commitment to climate-conscious travel.

Joining the efforts of smaller tour operators including Adventure Tours UK and Much Better Adventures, carbon-impact information is now displayed on over half of Intrepid’s trip pages — showing the estimated CO2e of the trip per traveler, per day. Emissions are calculated by identifying the different components contributing to the overall carbon footprint — including accommodations, transportation, food provided during the trip, activities, the local operations’ office emissions and waste. A 15 percent contingency is then added to each trip’s total emissions, to account for anything unintentionally missing.

Intrepid’s Greenhouse Gas Inventory calculation process was developed in line with the best-practice requirements set by Climate Active — an ongoing partnership between the Australian Government and corporations to drive voluntary climate action in the private sector.

Carbon labeling informs consumers of the impact of a product or service on the environment by providing a CO2e kg number similar to a nutrition label, allowing customers to make better-informed decisions. Seen the most so far in the food industry – with brands including Chipotle, Just Salad, Oatly, Quorn, Strong Roots and more including carbon-impact data on their products — carbon labels can now also be found on everything from personal-care products to electronics, footwear and sportswear.

Intrepid’s new labels will help educate travelers on their own carbon footprint and make it easier for them to understand their impact. They will also be able to access information on how Intrepid is offsetting these emissions and compare the data with everyday activities. For example, 100kg CO2e is about the same as charging a smart phone 12,164 times or driving a gas-powered car about 399 kilometers.

Image credit: Intrepid Travel

As part of the debut, Intrepid commissioned new research from The Harris Poll that revealed 64 percent of adults worldwide have no idea what their carbon footprint is. 60 percent are more likely to book trips with a company that is transparent about their environmental impact; and yet only 38 percent find it easy to find that information. And more than 1 in 2 people globally say they would be more willing to alter their plans if they could easily see and understand the carbon impact of each travel option.

Carbon labeling is not only helpful for consumers — it may soon become the new normal as we see more scrutiny and stricter regulations on greenwashing. Intrepid hopes these efforts will encourage other businesses to take accountability and follow suit.

“Without higher government regulations or the need for ESG disclosure, it is nearly impossible to hold businesses accountable for reducing their emissions,” said Sara King, GM of Purpose for Intrepid Travel. “We cannot shy away from our impact, and we cannot effectively reduce what we do not measure. With carbon labeling, we can increase customers’ understanding of their footprint while advocating for this level of measurement and transparency to become an industry standard.”

In addition to the rollout of carbon labels, Intrepid continues to roll out lower-carbon itineraries: In 2024, the company says it will have approximately 4,000 fewer flights on trips (compared to 2023) and will be discontinuing all scenic flights.

To see the original post follow this link: https://sustainablebrands.com/read/marketing-and-comms/intrepid-travelers-estimate-adventures-carbon-impacts

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Categories : Climate Change, corporate social responsibility, social responsibility, sustainability, sustainable branding

Moving Beyond Targets: The Time is Now for Climate Transition Action Plans

22 09 2023

Image credit: Karsten Würth/Unsplash

By Steven Clarke from Triple Pundit • Reposted: September 22, 2023

As the material business risks from climate change become increasingly clear, more than a third of the world’s largest 2,000 companies have set goals to reach net zero emissions by 2050 or sooner. Many companies have gone even further, setting emission reduction targets that are in line with what the latest climate science says are needed to meet the goals of the Paris Accords and limit global warming to 1.5 degrees Celsius. They are also disclosing information about the impacts of their business on carbon dioxide and other greenhouse gas emissions, water quality and scarcity, and nature.

This is tremendous progress and highlights that companies see opportunities to be had in tackling these risks. But awash with targets and goals, investors and other stakeholders still have one core question: What meaningful and measurable actions are companies taking today, and in the near-term, to meet these targets?

Climate transition action plans have emerged as a leading framework for companies to identify, plan, and implement strategies that reduce climate-related risks and maximize opportunities. These actions should be specific, time-bound and, if possible, quantified to detail the emissions reductions that companies expect to achieve.

While targets and disclosures are both deeply important, too often companies lack a forward-looking strategy that defines how they will work to achieve these targets in the next three to five years — both within and beyond their operations.

In fact, organizations that analyze and track climate action — such as the Science-Based Target initiative, Net Zero Tracker, Transition Pathway Initiative and CDP — have found that an alarming number of companies have yet to develop these plans. For instance, out of nearly 19,000 companies that annually report their climate impacts to CDP, only 13 percent have disclosed a sufficient number of indicators to be considered a credible plan — and only 0.40 percent of companies met all 21 of CDP’s key indicators.

Every company knows that delivering on a goal takes a plan. Just as companies set goals and develop detailed plans for driving sales, investing in new markets or recruiting talent, they also need a detailed climate action transition plan for delivering on their goals for slashing emissions and addressing their exposure to climate risk.

And the pressure on companies to deliver these plans is ramping up. In 2022, Ceres counted just nine investors asking companies they held to publish transition plans via shareholder resolutions. In 2023, that number jumped to 61.

Addressing the Ceres Global climate conference in March 2023, Mary Schapiro, vice chair for global public policy at Bloomberg and vice chair of the Glasgow Financial Alliance for Net Zero, said: “If 2021 was the year of mainstreaming net-zero commitments and 2022 was the year of target-setting and developing the frameworks to operationalize these commitments, we are now calling 2023 the year of transition plans.”

The momentum is building as investors are already implementing transition action plans to mitigate the risks climate poses to their portfolios. To help companies create and implement these plans to achieve their emissions reductions targets, Ceres’ Ambition 2030 initiative and our partners have developed action-oriented guidance and tools. At a high level, we outline four components for every transition plan:

Actions a company will take to reduce its Scope 1, 2 and 3 emissions, covering its entire supply and value chains, in line with limiting global temperature rise to 1.5 degrees Celsius.
Actions to identify, manage, and address climate risks and opportunities and incorporate these considerations into core business strategy and governance.
Actions to advocate for public policies that support and enable the achievement of corporate climate targets and economy-wide emissions reductions.
Actions to consider and support workforces, suppliers, customers, impacted communities and other stakeholders in the transition to a net-zero-emissions economy.

The time for action is now, and we encourage all companies to follow these guidelines as they develop the plans to make their targets a reality.

To see the original post, follow this link: https://www.triplepundit.com/story/2023/climate-transition-action-plans/783621

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Well behind at halftime: here’s how to get the UN Sustainable Development Goals back on track

21 09 2023

Photo: United Nations

By Cameron Allen, Research Fellow, Monash University and Shirin Malekpour, Associate Professor in Sustainable Development Governance, Monash University via The Conversation • Reposted: September 21, 2023

This week world leaders are gathering at the United Nations (UN) headquarters in New York to review progress against the Sustainable Development Goals. We’re halfway between when the goals were set in 2015 and when they need to be met in 2030.

As authors of a global UN report on the goals, we have a message to share. Currently, the world is not on track to achieve any of the 17 goals.

There is much at stake. Failing to achieve the goals would mean by the end of the decade, 600 million people will be living in extreme poverty. More than 80 million children and young people will not be in school. Humanity will overshoot the Paris climate agreement’s 1.5℃ “safe” guardrail on average global temperature rise. And, at the current rate, it will take 300 yearsto attain gender equality.

But there is hope. With decisive action, we can shift the dial towards a fairer, more sustainable and prosperous world by 2030.

What does the research say?

The set of 17 universal goals agreed in 2015 to aim to end poverty, improve health and education, and reduce inequality – while tackling climate change and preserving our oceans and forests. Each of the goals are broken down into targets.

Every four years, the UN Secretary-General appoints an independent group of 15 international scientists to assess progress against these goals and recommend how to move forwards. We were among the authors of the latest Global Sustainable Development Report published late last week.

To provide a snapshot of progress, we reviewed 36 targets. We found only two were on track (on access to mobile networks and internet usage) and 14 showed fair progress. Twelve showed limited or no progress – including around poverty, safe drinking water and ecosystem conservation.

Worryingly, eight targets were assessed as still going backwards. These included reducing greenhouse-gas emissions and fossil fuel subsidies, preventing species extinction and ensuring sustainable fish stocks.

What is holding us back?

Recent studies have identified feasible and cost-effective globaland national pathways to accelerate progress on the goals.

Unfortunately, in many developing countries, insufficient financial resources and weak governance hinder progress. In other cases, existing investments in fossil fuels have generated strong resistance from powerful vested interests. Achieving some goals, such as responsible consumption and production, will also require big, unpopular changes in habits and lifestyles, which are very ingrained.

To accelerate progress on the goals, targets must be fully integrated by government and business at all levels into core decision making, budgeting and planning processes. We need to identify and prioritise those areas that lag furthest behind. To be effective, we also need to uncover and address the root causes of inadequate outcomes, which lie in our institutions and governance systems.

Accountability also remains weak. The goals are not legally binding and even though countries have expressed their support, this has often failed to translate into policy and investments. In practice, the targets are often “painted on” to existing strategies without redesigning norms and structures to deliver improved outcomes.

If the world is to accelerate progress on the goals, governments need to play a more active part, by setting targets, stimulating innovation, shaping markets, and regulating business.

We call on policymakers to develop tailored action plans to accelerate progress on the goals in the remaining years to 2030, including measures to improve accountability.

Scientists have a major role to play too. As we argued in Nature, scientists can help us redesign institutions, systems and practices. By studying ways to strengthen governance and build momentum for tough but transformative reforms, research can overcome resistance to change, and manage negative side-effects.

What does it mean for Australia?

Australia tends to perform poorly on the goals when compared to our peers in the OECD (Organisation for Economic Co-operation and Development), ranking 40th in the world in 2023. Our best-performing goals include health and education, while progress lags on environmental goals, economic inequality and cost-of-living pressures.

While some environment agencies, businesses and local groupshave embraced the goals, Australia’s poor performance is symptomatic of limited traction and commitment at the centre of government.

Here, the goals are often seen as an international development issue rather than central to domestic policy efforts. We lack a high-level statement or any strategy or action plan for the goals. There is no lead unit or coordination mechanism in place and no reference to the goals in the federal budget. One promising development, a national Sustainable Development Goal monitoring portal, hasn’t been updated in five years.

The best performing countries have taken concrete steps to mainstream the targets and ensure accountability:

Denmark requires new government bills to be screened and assessed for their impacts on the goals
Finland has taken steps to place sustainable development and people’s wellbeing at the heart of policy and decision making. A sustainable development commission, annual citizens’ panel on sustainable development and national audits provide increased accountability
Wales requires public bodies to use sustainable development as a guiding principle reflecting the values and aspirations of the Welsh people.

Australia’s first wellbeing framework is an important step forward. The framework of 50 indicators has considerable overlap with the goals, despite notable exceptions such as the lack of a poverty indicator or any specific targets or benchmarks.

To see the original post, follow this link: https://theconversation.com/well-behind-at-halftime-heres-how-to-get-the-un-sustainable-development-goals-back-on-track-206677

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Big businesses say they are helping to restore ecosystems – but proof remains elusive

21 09 2023

A coral restoration project in Indonesia. Martin Colognoli/Ocean Image Bank, CC BY-NC-SA

By Tim Lamont, Research Fellow, Lancaster University via The Conversation • Reposted Septsmber 21, 2023

We’re witnessing first-hand an alarming decline of the world’s ecosystems, which is having a devastating impact on the people who rely on them. In many cases, it’s no longer enough to just protect what remains – degraded ecosystems must be restored.

Expanding restoration efforts at the rate required will only be possible with committed buy-in from local communities, regional and national governments, civil society and – crucially – the corporate sector.

Many businesses are starting to embrace this vision by launching ambitious restoration projects to replant trees, wetlands, coral reefs and mangroves that far exceed their legal responsibilities.

These endeavours are promising. In some cases, these projects are even delivering significant benefits. But according to a study, which was carried out by myself and several colleagues, we can’t be sure whether large corporations are making good on these environmental promises.

The hidden reality

We delved into the publicly available sustainability reports of 100 of the world’s biggest businesses. Our aim was to summarise the extent of their restoration work and its impacts.

What we found was both eye-opening and disconcerting. Two-thirds of these corporations stated that they carry out restoration activities. But the devil lay in the detail — or, in this case, the lack thereof.

Many of the corporate sustainability reports gave very little evidence to back up their claims about ecosystem restoration. They lacked rigour in defining restoration, outlining methodologies and quantifying outcomes.

They also failed to clearly distinguish between projects designed to merely align with legal responsibilities and those that would genuinely contribute to global restoration goals.

The majority (80%) of the reports failed to disclose how much money they were spending on ecosystem restoration. And 90% didn’t report any of the ecological impacts that their work had. A third of the reports didn’t even say how big their projects were.

In essence, the evidence supporting many corporate-led ecosystem restoration projects is glaringly inadequate.

The potential power of ‘Big Business’

The world’s largest businesses are powerful entities. They possess the resources, wealth, logistics expertise and influence to play a pivotal role in the mission to restore the world’s ecosystems.

Imagine a world where corporations use their vast finances, labour forces, manufacturing capabilities and social influence help rebuild forests, wetlands, savannas and coral reefs around the globe. It’s a vision of corporate responsibility that goes beyond mere compliance with environmental regulations.

But ecosystem restoration is notoriously difficult to do well. It requires careful and strategic consideration of a range of environmental and social factors.

Genuine attempts to restore ecosystems can sometimes do more harm than good. They can, for example, accidentally cause environmental damage, disempower local people and landowners or destabilise local governance. Some corporations also oversell their efforts to gain an undeserved boost to their reputation (a practice known as “greenwashing”).

Two people restoring a coral reef. — Coral restoration in Indonesia. Martin Colognoli/Ocean Image Bank, CC BY-NC-SA

Improving transparency and accountability

Better reporting will be essential for big businesses to become genuine leaders of global ecosystem restoration. It will allow us to properly track the progress of corporate-led initiatives, hold businesses to account against the claims they make, and learn from those businesses that are leading the way.

In our paper, we suggest that the rigour of corporate reporting could be improved by implementing several key principles taken from restoration science.

For example, corporate sustainability reports could better meet the principle of “proportionality” (understanding how much restoration activity has been carried out) by providing information about the spatial extent and number of organisms planted in each individual restoration project that a company carries out. It would then be possible to evaluate the likely scale of the project’s impact.

The principle of “permanence” (committing to long-term restoration commitments) could be better evidenced by companies reporting on the number of years they’ve committed to maintain, monitor and report on projects after they’ve been started.

By reporting in ways that adhere to scientific principles like these, companies will be able to demonstrate much more convincingly that their efforts in ecosystem restoration are delivering the environmental and social benefits that they claim.

A woman holding a bowl of urucum in a forest. — A smallholder shows urucum produced in the Santarem region of the Brazilian Amazon. Marizilda Cruppe Rede/Amazonia Sustentavel, CC BY-NC-SA

Big business is showing an increasing interest in contributing to global sustainability. As part of this movement, corporate-led ecosystem restoration could become a valuable asset in the battle to protect our planet’s vulnerable ecosystems. But it will only work if we can ensure transparency, accountability and adherence to best practice.

The idea of big business helping to rebuild the planet is an alluring rhetoric. Now it’s time to back it up with evidence.

To see the original post, follow this link: https://theconversation.com/big-businesses-say-they-are-helping-to-restore-ecosystems-but-proof-remains-elusive-213282

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Diversity and Inclusion Policies Are at Threat – Here’s How To Keep Them on Track

20 09 2023

Image: SAP

By Supriya Jha, Chief Diversity and Inclusion Officer, SAP via World Economic Forum • Reposted: September 20, 2023

A debate in the United States around affirmative action has placed doubt on the future of broader diversity and inclusion (D&I) policies in the workplace.
The adversity around proactive D&I can provide an opportunity to revisit internal policies and practices to strengthen them.
Here are four things organizations can do to ensure D&I goals stay on track.

Diversity and inclusion (D&I) is under fire. In the United States (US), the courts recently ruled that race could no longer be a factor in university admissions, defeating affirmative action policies. There is now a passionate and polarizing debate on whether D&I strategies in the corporate environment lead to equity or bring down meritocracies.

To make matters worse, the narrative of defunding D&I initiatives in the corporate arena can unnerve companies’ small D&I teams. As we stand in the throws of this debate, it should be clear that D&I has not been a fleeting trend and remains an imperative that shapes the fabric of organizations and society.

The US trajectory on D&I might seem uncertain but the need for it is clear, including at a global level. Today’s challenges are opportunities to refine and strengthen our strategies so workplaces and communities are genuinely inclusive.

Maintaining the path to an inclusive future

As organizations stand at a crossroads, here are four things that can keep one grounded in the D&I journey:

1. Cultivating a sense of belonging

D&I is not a checkbox exercise; a common misconception is that it targets only people of colour. The purpose of D&I is to nurture a sense of belonging regardless of individual differences. When individuals feel welcomed, valued and respected, they contribute their best.

Gone are the days when people can simply be viewed as organizational assets: employees want to be valued as individuals and creators of change. Nothing cultivates belonging more than love and care – that’s evident as we feel genuinely connected to familial units, societies and organizations that care for us.

Nurturing that belonging in the workplace requires genuine and consistent leadership, commitment and vision. When I reflect on the many actions companies took during the pandemic, the most compelling ones contributing to higher retention involved leaders being accessible and present to listen to employees.

Creating opportunities for leaders to listen to and act on the needs of their diverse employee base is a strategy that works well in many directions. From the CEO to the front-line manager, empathetic listening skills assure employees they are heard and seen.

2. Doing the groundwork for our future

Efforts in the D&I arena are not momentary but also exist for future generations.

As a mother of two girls, I have a vested interest in driving forward D&I in organizations. I want my daughters to experience a workplace where they can be themselves and their differences and uniqueness are celebrated. They should be provided with opportunities based on their skills and talent.

More importantly, the workplace should help staff optimize their potential instead of wasting time fitting into cultures made by a homogenous majority. My hope is the pandemic-induced flexible and remote work policies don’t become exceptional but are normalized across industries where feasible. Additionally, providing employees with tools to recognize and address unconscious biases via continuous education and training can help raise collective awareness and foster a more inclusive environment.

Having served in the [diversity and inclusion] space for over 16 years, I’ve learned that [it] is not a one-time action; it requires resilience and constant adaption.”— Supriya Jha, Chief Diversity and Inclusion Officer, SAP SE

3. Unleashing the power of employee resource groups

Employee resource groups are beacons of progress in a company’s journey. hese networks are voluntary, employee-led groups that unite individuals with shared backgrounds, experiences, identities or interests. More importantly, they need to be open to all – so that the “upstanders” – not bystanders – and allies can find a space to learn and grow.

Spaces for shared experiences spark conversations that lead to meaningful change for the community and business. Making employee resource groups part of the business strategy with executive involvement has been tried and tested in most organizations. Enabling these groups to contribute to partner, supplier and community interactions can further help unleash the collective’s power. What makes for great strategy within the workplace can translate to a growing movement in society and the marketplace.

4. Consistency is key

Having served in the D&I space for over 16 years, I’ve learned that it is not a one-time action; it requires resilience and constant adaption. To bring about lasting change, we must show evidence of incremental progress. But any win is worthwhile, even minor achievements.

It is essential to remember that accumulating these steady, incremental steps leads to success overall. As we navigate the complexities of implementing D&I strategies, let us recognize that it is not about a destination but the journey.

Inculcating inclusive hiring practices at all levels, fostering environments that champion the engagement of neurodivergent talent and opening doors for underrepresented businesses will all set us on a path to a more equitable future. Setting clear and measurable goals, recalibrating at every step, celebrating the diversity and uniqueness of the workforce and amplifying the achievements loudly are the factors contributing to success.

Ultimately, our quest for belonging is a tapestry woven with threads of diverse experiences, united by a shared purpose. Let us continue weaving this tapestry, creating a world where our differences are not divisions but vibrant threads that enrich the canvas of human existence.

To see the original post, followo this link: https://www.weforum.org/agenda/2023/09/diversity-and-inclusion-policies-are-at-threat-here-s-how-to-keep-them-on-track/

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A Majority of Large U.S. Companies Adopting Ambitious Sustainability Goals

18 09 2023

By Boston Real Estate Times • Reposted: September 18, 2023

A new Veolia North America survey of 245 large U.S. companies shows that more than half will have ambitious goals addressing net zero carbon, zero waste to landfill, zero liquid discharge, and targeted increases in water efficiency, reuse, and waste recycling by 2025, with many firms already setting specific targets.

The survey shows reductions in greenhouse gas emissions are the top sustainability priority for most firms, but it is clear that priorities to address water and waste reductions are catching up.

While the commitments being made by firms are encouraging, the data in the new Veolia survey shows that the majority of companies have yet to identify specifically what the exact steps are to achieve their most ambitious medium- and long-term commitments.

Here are some highlights of the survey, which was conducted over the past year:

60% of firms identified specific projects and initiatives to achieve their short term sustainability goals (less than five years), while 37% had not.
40% of firms reported that reducing operational costs is a very important driver for pursuing sustainability goals.
While investments included in the landmark U.S. Inflation Reduction Act have gone far in providing firms with the financial support they need to convert to sustainable practices, it will not be enough to meet all their needs. Based on an analysis by the International Energy Agency and Boston Consulting Group, the overall transition to sustainable energy across U.S. industries will require at least $18 trillion in additional capital by 2030.

“This survey provides many important insights on how firms across America are responding to the growing concern around climate change, and why they are looking to reduce their impact on carbon emissions, waste streams and water use,” said Veolia North America President and CEO Fred Van Heems. “A large number of companies are genuinely committed to achieving sustainability objectives, yet they are not sure how to begin, which is keeping many of them from moving forward. The good news is there are solutions available to get them on track and help them sustain momentum.”

The survey findings point to the need for more urgency in clearing the way for industries to adopt more sustainable practices as soon as possible, according to Charles Iceland, Director of Freshwater Initiatives for the World Resources Institute, an environmental think tank based in the U.S.

“It’s clear from this survey that for large companies that are genuinely committed to operating on a more sustainable basis, more resources and data are needed to help them determine where their greatest needs are so they can take effective action,” Iceland said.

The survey found that a majority of companies are committing to sustainability goals primarily because of reporting requirements, regulatory compliance, cost savings and brand reputation. Of the firms surveyed, roughly one-third said the environmental risks to their operations were not a very important driver.

The survey findings are being announced one year after passage of the U.S. Inflation Reduction Act, which was meant to kickstart the economy with investments in critical infrastructure, with a special focus on initiatives that will help meet sustainability goals for addressing climate change.

The survey found that many respondents are prioritizing sustainability initiatives because of the incentives and opportunities available in the IRA legislation and other factors such as regulatory requirements and investor focus on climate disclosures.

What remains a challenge, the survey showed, is that companies still lack the funding to support the transition and take the concrete steps necessary to achieve their goals. They also are struggling to achieve alignment of internal goals and responsibilities and easy access to data to understand where they are and track progress.

“Before firms can invest in reducing their impact on the environment and become more sustainable, they need information on their current baseline, such as data on their energy emissions, waste and water use,” said Patrick Schultz, President and CEO of VNA’s Sustainable Industries and Buildings division. “This will enable them to choose measures that can be immediately and easily implemented, and ones that may require a strategy to mitigate over time.”

Schultz added, “This kind of analysis is only effective if it is conducted holistically, taking into account each firm’s contributions not only to high-profile factors like greenhouse gas emissions, but also equally important considerations like reducing landfill waste and preserving water resources. This is what Veolia North America means by triple zero – achieving net zero goals for energy, waste and water.”

To see the original post, follow this link: https://bostonrealestatetimes.com/a-majority-of-large-u-s-companies-adopting-ambitious-sustainability-goals/

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Content Creators Hold Back on Promoting Sustainability Amid Greenwashing Fears

18 09 2023

IMAGE: MIZUNO K

Unilever study uncovers barriers influencers face around creating sustainability content. The company is partnering with climate-focused nonprofits and launching a Creator Council to help address these barriers. From Unilever via Sustainable Brands • Reposted: September 18, 2023

A first-of-its-kind study by Unilever has revealed that although 60 percent of social media content creators want to make a positive impact on the environment, the majority (84 percent) are holding back from mentioning sustainability more in their content. While their content has the potential to drive more sustainable behaviors — with 78 percent of consumers claiming in an earlier study that influencers have the biggest impact on their sustainable purchasing and lifestyle habits — content creators fear greenwashing amongst other barriers.

According to the study — which polled the views of 232 content creators across YouTube, TikTok and Instagram in the UK, US, Brazil and the Philippines — almost two-thirds (63 percent) are creating more sustainability content this year compared to last year; and three-quarters (76 percent) want to create even more in the future.

But content creators say they are holding back, with the fear of greenwashing coming out as the top barrier for over a third (38 percent). Other barriers include finding it difficult to transition from the main focus of their content to sustainability; thoughts on what is or isn’t sustainable can change; and not feeling educated enough on the key sustainability issues — all receiving 21 percent. Concerns about being cancelled was cited as a problem by 18 percent of respondents.

While more than half (58 percent) of influencers say they feel confused about sustainability or environmental labels, the study also found that over 9 in 10 (91 percent) would find each of the following types of advice helpful:

direct support to ask questions on sustainability briefs;
support dealing with audience comments;
and access to training about making trustworthy statements about company and product sustainability claims.

To help address this, Unilever — alongside a coalition of partners including sustainability nonprofits and a new Creator Council — today calls on other brands, agencies and technology companies to join forces with them to help content creators authentically and accurately drive more sustainable consumer choices through social media content.

The new coalition of partners includes sustainability experts from Count Us In, United Nations Development Programme, Rare and Futerra Solutions Union; as well as an independent Creator Council — a community of social media content creators across travel, beauty and lifestyle sectors specifically brought together to advise on and shape this initiative.

“We have long known that climate action isn’t only for governments. In fact, the IPCC reports tell us that public action could quickly save 5 percent of ‘demand side’ carbon emissions,” says Count Us In co-founder Eric Levine. “There has never been a more critical moment in history to be part of a coalition that puts creators at the heart of advancing new solutions. Using credible, science-based guidelines and behavior change theory, we have the potential to influence billions of people through the collective reach of the creator economy.”

The coalition will work to co-create an industry-wide digital solution that will bring together social media content creators, nonprofits and brands to accelerate accurate and effective sustainability content built upon science and behavior change theory to encourage more sustainable behaviors. Partners are currently developing a framework and guidelines to ensure the solutions are in line with the latest climate science.

Dr Adanna Steinacker — entrepreneur, public speaker, digital influencer and member of the Creator Council — says: “As a digital content creator, I feel a responsibility to inspire my audience with solutions that are better for our environmental and planetary health. It is crucial that brands and creators unite in this mission, dissecting science-backed information into creative storytelling that resonates with the public and influences change on a global scale. With adequate brand support, we can enhance sustainability content on social media, inform our communities accurately, and collectively contribute to a better environment.”

“We know that sustainability content on social media has the potential to drive more sustainable behaviors; but it needs to be informative and meaningful content,” asserts Rebecca Marmot, Unilever’s Chief Sustainability Officer. “Climate Week NYC 2023 is the perfect opportunity to collaborate with others and empower influencers to communicate on the key issues with credibility.”

Unilever invites brands, nonprofits and social media content creators to join the coalition by contacting Count Us In at contact@countusin.com.

To see the original post, follow this link: https://sustainablebrands.com/read/marketing-and-comms/content-creators-not-promoting-sustainability-greenwashing-fears

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Tags: accountability, Content Creators, corporate social reponsibility, corporate social responsibility, Creator Council, CSR, ESG, IPCC, sustainability, sustainable branding, sustainable brands
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Sustainability Is About Your Workforce, Too

18 09 2023

Javier Zayas Photography/Getty Images

By Josh Bersin from Harvard Business Review • Reposted: September 18, 2023

The EU has long been committed to improving worker well-being, claiming it wants to create more transparent and predictable working conditions for all its 182 million workers. Now, it’s moving ahead with this objective on a number of fronts:

Its Transparent and Predictable Working Conditions Directive, which member states were required to enact by August 2022, is geared toward improving employee protections and increasing labor market transparency.
Its Work-Life Balance Directive, which came into effect in 2019, aims to set minimum standards for paternity, parental, and career leave as well as flexible work arrangements.
Its Corporate Sustainability Reporting Directive (CSRD) mandates that, starting in May 2024, any company with €40 million in net turnover, €20 million in assets, or 250 or more employees that trades in Europe publish detailed information about their efforts to address a range of sustainability challenges.

In recent years, many companies hired a chief sustainability officer and established a set of high-priority programs to reduce carbon emissions and the risk of global climate change. The enactment of these new regulations signals a new era in which it’s time to extend the concept of sustainability to include similarly critical issues with the workforce — an idea I call people sustainability.

People sustainability takes a holistic approach to corporate human capital practices, including diversity and inclusion, well-being, employee safety, and fair pay. It raises these human capital issues to the C-suite and obliges chief human resource officers to work with chief sustainability officers on these programs. It means that your employee well-being efforts are no longer delivered piecemeal, which was ineffective no matter how well-intentioned or resourced they might be.

The EU is essentially saying that all these “HR programs” are much bigger than HR: They now fall into the category of global citizenship mandates, and companies must treat and report them as such.

How to Integrate People Sustainability into Your Company

I’m talking to European and U.S. firms about how they are gearing up for the Corporate Sustainability Reporting Directive and developing people sustainability metrics. Here are examples of how a few companies are approaching this:

Heineken has developed standard measurements of human rights, fair pay, and even living conditions for all its contract workers helping it deliver beverage sales around the world.
Enterprise software leader SAP has coupled its industry-leading diversity program to new pay equity and sustainability initiatives. For example, the company now openly publishes all pay bands so employees can see where they are and the pay scales for all new jobs posted. In parallel, it provides hiring and workplace support for neurodivergent employees. After undertaking a progressive gender pay equity analysis, it inaugurated a very aggressive program of promotions of women into senior leadership — all long-term “people sustainability” strategies.
Financial services firm Liberty Mutual sees people sustainability as a factor in limiting the global risks of its customers, partners, and employees in the face of accelerating climate change. Chief sustainability officer Francis Hyatt, who previously served as executive vice president of enterprise talent practices, oversees the integration of global climate issues in the firm’s risk management approach and promotes sustainability solutions for employees, resellers, and customers. The company promotes thought-through generational and gender equality programs, and Hyatt ensures that every employee understands how their long-term safety and success is part of the company’s overall sustainability strategy. In other words, this new job function unifies all the brand’s existing HR work into the context of sustainability and helping the planet.

What links all three of these major corporations is the way each separately discovered that when you frame human capital investment in the context of sustainability, it assumes even more importance than it did before.

If you see value in this approach, where should you start at your organization? Building on the European Union’s new detailed CSRD reporting requirements, leaders will need to address issues ranging from greenhouse gas emissions to gender pay across their own operations, as well as that of their suppliers and business partners. You should try to ensure sustainability becomes a pillar of operations as early as possible, as the compliance clock is ticking.

The real action is to get your HR team to start working as soon as possible with their ESG colleagues to get people sustainability metrics and strategies into your business goals. To drive this, bring together a team including your heads of HR, DEI, and ESG, as well as representatives from your corporate finance and legal teams, to design your people sustainability program. You’ll ultimately want to see these goals reflected in your annual report and other stakeholder communications, so that these programs are seen as a core part of company strategy.

A recent survey by PwC reveals that many CEOs anticipate climate risk will affect their cost profiles and supply chains in the next year. However, despite these challenges, 60% of the surveyed CEOs do not plan to reduce headcount, and 80% do not plan to decrease compensation, as they recognize the importance of retaining talented employees.

Data like this underlines how people sustainability has become an integral strategy for corporate growth. Investors will soon begin to measure the effectiveness of a company’s well-being initiatives as a key metric of overall performance as much as its P&L.

You don’t have to be directly affected by Europe’s new sustainability laws to see that bringing together previously disconnected efforts such as DEI, purpose, or L&D under the umbrella of “long-term organizational sustainability” makes a lot of sense. You might even see it as meeting the needs of the present without compromising your future: a measure of sustainability that certainly gets my support.

Josh Bersin is founder and CEO of human capital advisory firm The Josh Bersin Company. He is a global research analyst, public speaker, and writer on the topics of corporate human resources, talent management, recruiting, leadership, technology, and the intersection between work and life. To see the original post, follow this link: https://hbr.org/2023/09/sustainability-is-about-your-workforce-too

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The importance of renewing focus on the ‘S’ in ESG

14 09 2023

Graphic: Harvard University

From Consultancy.UK • Reposted: September 14, 2023

Business strategy has predominantly focused on the ‘E’ in Environmental, Social and Governance policy; but fostering good growth requires a renewed emphasis on the importance of the ‘S’ pillar, according to Xynteo Managing Partner Jonah Grunsell. He explains how this can help to create socially consciousness, inclusive and profitable supply chains.

In today’s dynamic business landscape, the integration of social consciousness and inclusivity within supply chains is crucial. Enterprises that prioritise these principles not only contribute to a fairer and more equitable world but also gain a competitive edge through the fostering of stronger relationships with diverse stakeholders. So, what can businesses do to embed social consciousness and inclusivity within their supply chains at every step?

The 2022 Global Sustainability Study shows that 66% of consumers rank sustainability as one of the top five drivers behind a purchase decision; meaning that transparent communication in supply chain practices plays a pivotal role in establishing trust with consumers, investors, and stakeholders. Businesses must strive for openness regarding their sourcing, labour practices, and social and environmental initiatives. Research by Label Insight showed a staggering 94% of consumers are likely to remain loyal to a brand that offers complete transparency about its supply chain, underscoring the growing importance of supply chain visibility in understanding a business’s impact.

Yet, transparency in supply chains goes beyond consumers, with investors, suppliers and other stakeholders also seeking clarity and openness.PwC revealed that 83% of investors believe that non-financial disclosures, such as supply chain information, are essential when making investment decisions. Enhancing communication with consumers, NGOs, and industry partners is also a vital element in creating a positive impact through supply chain practices. According to a study by the Harvard Business Review, 65% of consumers want to buy purpose-driven brands that advocate sustainability.

In the quest for responsible supply chain practices, reporting and certification play a crucial role in demonstrating a company’s commitment to transparency and accountability. Sustainability reports provide comprehensive insights into an ESG performance, showcasing their efforts to minimise environmental impacts, promote social welfare, and ensure ethical business practices.

While, environmental management certifications, such as ISO 14001, demonstrate a company’s dedication to reducing its environmental footprint and fairtrade certification guarantees that products meet strict standards, ensuring fair wages and better working conditions for farmers and workers. According to a study by the Global Reporting Initiative (GRI), 96% of the world’s 250 largest companies now disclose their sustainability performance through these reports.

A good example from the technology world is Apple, which has taken great strides both on reporting on its sustainability efforts as well as acting on the insights generated by increased transparency and tracking. This level of transparency instils trust among consumers, investors, and partners, encouraging them to support and collaborate with socially and environmentally responsible companies.

Embracing diverse and ethical strategies

True inclusivity requires forging partnerships with a diverse supplier base, particularly those within underrepresented groups such as women, minorities, and social enterprises. Businesses can support local communities, create economic opportunities and promote social mobility by actively seeking out and collaborating with these suppliers. A study by the Harvard Business Review indicates that actively embracing a supplier diversity programme can foster innovation and increase the bottom line. A procurement strategy that prioritises inclusivity expands the range of potential suppliers and fosters healthy competition within the supply base, leading to enhanced product quality and cost reduction.

One fundamental aspect of improving supply chains is ensuring fair labour practices and ethical sourcing. Businesses can take proactive steps to verify that their suppliers adhere to responsible labour standards, treat workers fairly, and provide safe working conditions. This includes regular audits, transparent supplier relationships, and collaboration with industry initiatives promoting ethical practices. By sourcing ethically, businesses can contribute to the well-being of workers, reduce social inequalities, and enhance the reputation of their brands.

Prioritising ethical sourcing practices involves scrutinising suppliers’ labour conditions, environmental impact, and compliance with human rights standards. Partnering with suppliers who align with these values ensures that products and services are not tainted by exploitation or harm to communities.

Providing suppliers with training, resources, and support can significantly enhance their operational efficiency, product quality, and compliance with ethical and environmental standards. This not only improves the overall supply chain’s performance but also promotes sustainable practices and responsible behaviour. Businesses also can make a positive impact on communities by investing in social programmes and projects that tackle pressing challenges such as education, healthcare, and infrastructure.

Prioritising local suppliers and supporting small businesses within the community can stimulate economic growth, create job opportunities, and promote entrepreneurship. Embracing local sourcing strengthens community ties, boosts regional development, bolsters community resilience, enhances quality of life, and contributes to societal progress, generating a broader positive influence beyond the business itself. The good news is that ethical business practices make commercial sense when you consider that, for example, 70% of American consumers think either “somewhat” or “very important” for companies to make the world a better place; while a huge 93% of employees believe companies must be led by purpose.

Unilever, for example, has set ambitious social targets under its ‘Sustainable Living Plan’, including empowering 5 million women through its value chain by 2020 and enhancing economic growth in local communities. Their ‘Partner with Purpose’ strategy aims to drive mutual growth that’s consistent, competitive, profitable and responsible, and influence the people they buy from to, in turn, buy from diverse suppliers, leading to the transformation of their value chain.

Nurture responsibility

Businesses must play a pivotal role in encouraging responsible consumption by engaging consumers and raising awareness about the social and environmental impacts of their products. A study by Nielsen reveals that sustainability is more important to 69% of global consumers than it was two years ago. Providing transparent information about sourcing and ethical considerations empowers consumers to make informed choices aligned with their values. By actively involving consumers in the journey towards a more socially conscious supply chain, businesses can build trust, loyalty, and a positive brand image.

Integrating social consciousness and inclusivity into supply chains enables businesses to create positive societal impact while ensuring long-term sustainability. Ethical sourcing practices, diverse partnerships, sustainable logistics, and responsible consumption are essential steps in achieving these goals.

Xynteo encourages businesses to take a proactive stance, transforming their supply chains into vehicles for change that promote fairness, equality, and environmental stewardship. Through collective efforts, we can build a more just and inclusive world, one supply chain at a time.

To see the original post, follow this link: https://www.consultancy.uk/news/35365/the-importance-of-renewing-focus-on-the-s-in-esg

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Business schools must step up on sustainable investing education

11 09 2023

Student-Managed Investment Funds provide students with experience managing real investment portfolios. But new research shows only. a small minority of funds include environmental, social and governance (ESG) factors in their mandates. Photo: Shutterstock

By Lorin Busaan, PhD Student, Gustavson School of Business, University of Victoria and Basma Majerbi, Associate Professor of Finance, Gustavson School of Business, University of Victoria via The Conversation • Reposted: September 11, 2023

Sustainable investing takes into account environmental, social and governance (ESG) factors alongside traditional financial components. While this form of investing has existed for a long time, ESG has become a hot-button issue due to recent politicization and widespread public misconceptions around what it really entails.

ESG investing examines quantitative and qualitative non-financial data on companies. This includes environmental issues like carbon emissions, pollution and resource use; social issues like employee treatment and relationships with communities; and governance issues like diversity of corporate boards, business ethics and transparency.

Criticisms of ESG investing have been exacerbated by post-secondary finance programs that barely touch upon these issues, resulting in a significant shortage of qualified sustainable investment professionals.

Due diligence

A basic qualification for finance graduates is the ability to analyze the environmental, social or governance factors that create risks and opportunities for a given company and, in turn, affect investors’ returns.

Unfortunately, graduates often lack even this basic qualification, in addition to more advanced expertise required to assess the investment impacts on people and the planet.

Given the climate crisis and persistent inequality, business schools must urgently and immediately tackle the sustainability deficit in finance education. Formal instruction must be enhanced with experiential learning techniques that expose students to the complexity and nuances of sustainable investing.

Our research shows that Student Managed Investment Funds (SMIFs) — currently present at many Canadian universities — are an underused, hands-on learning opportunity for training the next generation of sustainable investment professionals.

ESG under fire

Despite the potential of sustainable investing to accelerate the net-zero carbon transition and support the UN Sustainable Development Goals (SDGs), it has come under fire in recent years.

A dark-haired man speaks into a microphone. — The head of the Kansas Public Employees Retirement System testifies before a Kansas legislative committee in March 2023 about a bill that would bar the pension system from ESG investing. (AP Photo/John Hanna)

Politically, sustainable investing has become a flashpoint for partisan conflict in America’s culture wars. Right-wing critics argue that including ESG considerations in investment decisions is intrusive moralizing and part of a “woke capitalism” agenda.

Counterparts on the left downplay concerns about economic transition costs or exaggerate the power of ESG investing to create a better world.

Recent studies also show that third-party ESG ratings are unreliable, leaving considerable room for greenwashing or, at minimum, “greenwishing” — when companies or investors have good intentions but fail to meet their sustainability goals.

Criticisms and politicization, combined with other factors, have curtailed flows to ESG funds. This is unfortunate given the urgent need to mobilize more financial capital to address climate change, biodiversity loss and inequality.

Reforming business schools

Developing competence in sustainable investing requires a serious revision in business school finance programs.

Core courses must include sustainable investing concepts and tools as part of mainstream financial education. This is especially important given fast-evolving ESG and climate-related regulations and rising global risks that pose new threats to companies and investors.

It’s also important that students learn the limits of different forms of sustainable investing to avoid falling into the trap of greenwashing.

Many ESG strategies primarily focus on risk mitigation with, at best, a marginal impact on people or the planet. Others, such as impact investing, focus on measurable social and environmental outcomes, often using the UN’s SDGs for their impact goals, alongside financial returns.

Impact investing could unlock much needed capital for critical sectors in the net-zero transition that would otherwise be underfunded when using traditional financial metrics.

In short, sustainable investing, in all its forms, requires additional skills that are currently lacking in finance education. Social and environmental impacts can be difficult to quantify and may require longer-term perspectives and qualitative judgements about potential impacts on many stakeholders.

A lecture hall with a man at the front delivering a lecture. — *It’s important that students learn the limits of different forms of sustainable investing to avoid falling into the trap of greenwashing. Image: Unsplash*

Student-managed investment funds

These skills are best developed through hands-on practice that supplements formal instruction. Student-Managed Investment Funds (SMIFs) provide students with experience working together to manage real investment portfolios under the guidance of faculty supervisors and industry professionals.

Canadian universities have established more than 30 funds that students oversee as portfolio managers, buying and selling stocks, bonds or other assets. The capital in these funds comes from a variety of sources, including donations from companies, philanthropic gifts from individuals or foundations, and in some cases from university endowments.

Unfortunately, our research shows that only a small minority of these funds include ESG considerations in their mandates.

Of the 31 Canadian SMIFs we analyzed (totalling $79.5 million managed by students), only five (16 per cent) have some level of ESG consideration. Since business schools have long used student-managed funds to train the next generation of investment bankers, financial analysts and other financial industry professionals, this is surprising — and disappointing.

a graph shows the number of smifs in canada with esg components. — Authors’ analysis of SMIFs in Canada with ESG components based on publicly available data from major Canadian business schools’ websites as of fall 2022. Impact Investing Hub, University of Victoria

The gap is even more pronounced for impact investing, which is barely mentioned in any of the funds in our sample, despite universities’ commitments to the UN’s Sustainable Development Goals.

a graph shows the size of smifs in canada with and without ESG components. — Authors’ analysis of the size of SMIFs with and without ESG components, based on publicly available data from major Canadian business schools’ websites as of fall 2022. Impact Investing Hub, University of Victoria

Sustainable finance education could benefit greatly when students work together to integrate financial, environmental and social factors in student-managed investment funds.

Learning by doing helps students develop important analytical skills, familiarizes them with key tools and data sources and helps them navigate the maze of ESG standards, frameworks and guidelines.

The role of universities

Including sustainability mandates in finance programs and student-managed investment funds will ensure Canadian universities train the next generation of sustainable investment professionals needed to accelerate the net-zero transition.

We encourage university administrators and finance educators across the country to immediately implement ESG policies for existing student-managed investment funds. In collaboration with industry and donors, new funds could also be established that focus on particular themes, like climate solutions or nature-positive investing.

One encouraging initiative in this regard is by Propel Impact, a non-profit that is collaborating with seven universities to run their own local student impact funds.

Through creative partnerships with investors, Propel has been supporting student training while benefiting local communities, with $750,000 directed by students toward 14 Canadian social enterprises over the past three years. We offer this program to University of Victoria students and hope it expands to more Canadian universities.

As we confront pressing social and environmental challenges, we can’t be discouraged by partisan sniping. Instead, we must build momentum for sustainable investing by training future financial professionals more effectively.

To see the original post, follow this link: https://theconversation.com/business-schools-must-step-up-on-sustainable-investing-education-208352

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Tags: accountability, corporate social reponsibility, corporate social responsibility, CSR, ESG Investing, green marketing, Impact Investing, responsible brands, SMIFS, sustainability, sustainable branding, sustainable brands, UN SDGS
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ESG at a Crossroads: Down, But Not Out

11 09 2023

Image credit: Justin Luebke/Unsplash

By Tina Casey from Triple Pundit • Reposted: September 11, 2023

With the 2023 proxy season in the rear-view mirror, financial analysts noted a sharp decline in shareholder support for environmental, social and governance proposals. However, anti-ESG proposals also failed to stick, and signs of an ESG resurgence are already beginning to emerge.

Mixed support in the 2023 proxy season

Most U.S. companies hold proxy sessions between April and June, enabling shareholders to vote on issues without being present.

Based on the outcome of the 2023 season, shareholders seem to be losing interest in ESG issues. In a June analysis, the firm FTI Consulting noted that “2023 has seen investors support significantly less environmental and social proposals than in past years.”

The question is whether or not the drop-off marks a permanent trend or a temporary reaction to current events. FTI attributed much of the decline to the “anti-ESG” agenda, explaining: “The scrutiny on institutional investor vote behavior…by the anti-ESG activists has caused institutional investors to support less environmental and social proposals in 2023.”

At the same time, anti-ESG proposals also failed to garner much support from shareholders over the past five years, the analysis found. FTI advised that other factors can also have a significant influence on ESG support. Analysts cited the 2022 proxy season, which also saw a drop in ESG support after a rules change by the U.S. Securities and Exchange Commission. The change fostered a spike in the number of prescriptive proposals to come up for a vote, and prescriptive proposals generally receive low support from shareholders regardless of their subject matter.

We don’t talk about ESG, but we do it

One area where the anti-ESG movement has clearly had an impact is in the way in which bankers, money managers and other financial stakeholders communicate. Many continue to put the principles into action while avoiding specific references to ESG, as shown by a recent Bloomberg survey.

“About two-thirds of respondents in a survey of roughly 300 Bloomberg terminal users said the anti-ESG movement that started in the U.S. last year will force firms to stop using those three letters in conversations with clients,” Alastair Marsh and Lisa Pham of Bloomberg observed last month. “However, they’ll continue to incorporate environmental, social and governance metrics in their business.”

Financiers under fire

The Bloomberg analysis is among those attributing ESG avoidance to an aggressive, partisan political environment of legislative and legal attacks on ESG investing.

Though the issue seems to have failed to gain traction among voters, fossil energy stakeholdershave been credited with motivating Republican office holders to act. Their efforts reportedly include model bills created by the American Legislative Exchange Council (ALEC), which has established a right-wing reputation with an emphasis on protecting fossil fuels.

“The finance industry is now grappling with a second year of attacks on ESG by key members of the Republican Party, including threats of litigation from state attorneys general, as well as outright bans on the strategy in some U.S. states,” Marsh and Pham of Bloomberg noted.

The attacks prompted one of the highest-profile proponents of the ESG investing movement, BlackRock CEO Larry Fink, to stop using the acronym altogether.

“I don’t use the word ESG any more, because it’s been entirely weaponized … by the far left and weaponized by the far right,” Fink told a gathering at the Aspen Ideas Festival last summer, as reported by Reuters. In the same speech, he reaffirmed BlackRock’s commitment to discussing decarbonization, corporate governance and social issues with the companies in its portfolio.

Financiers fight back

Despite the political headwinds, financial stakeholders continue to act in support of social and environmental principles. Part of the effort is happening behind the scenes, as financial stakeholders seek to convince legislators that anti-ESG bills will result in financial harm to their states.

In a recent analysis, S&P Global identified 12 states in which Republican legislators “successfully pushed anti-environmental, social and governance legislation across the finish line.” In all, 19 states now have one or more anti-ESG laws on the books.

That may seem like a substantial gain, but the legislative failures outweighed the successes. “Many anti-ESG bills introduced in 2023 … failed after chambers of commerce, banking associations and public pension officials raised concern over costs or free market principles,” S&P observed.

In addition, only four of the 25 new anti-ESG laws to pass this year remained intact by the time of the August analysis. The other 21 were substantially revised to protect state pension funds. S&P cited Indiana and Texas as examples, both of which would have faced billions in losses over 10 years without the revisions.

Taking it to the courts

Financial stakeholders are also taking their case to court. For example, last month the Securities Industry and Financial Markets Association (SIFMA) — an industry group that counts BlackRock among its members — moved to challenge new Missouri rules on ESG documentation.

The rules went into effect on July 30. As described by SIFMA, they stipulate burdensome documentation that no other state requires. SIFMA argues that the new rules put Missouri in direct conflict with the 1996 National Securities Markets Improvements Act, under which states cannot preempt standard federal record-keeping rules.

“Under existing federal securities laws, broker-dealers and investment advisers are already required to provide investment advice that is in the best interest of their customers,” the group argued as it announced the suit. “The Missouri rules are thus unnecessary and create confusion.”

The climate factor

New reporting rules established by the European Union may also motivate U.S. companies to continue making progress on ESG principles, regardless of what’s happening at home.

The new EU Corporate Sustainability Reporting Directive became effective last January. “This new directive modernizes and strengthens the rules concerning the social and environmental information that companies have to report,” the European Commission’s website reads. The new rules cover large companies as well as small and midsized companies.

In June, the Republican-led ESG Working Group in the U.S. House of Representatives released an interim report that recommended protecting U.S. companies from “burdensome EU regulations.” However, Republican leadership will have a hard time reconciling protectionism with their party’s longtime support for free market principles.

The anti-ESG movement is also floundering on the national stage. Surveys routinely reflect public support for ESG principles. Moreover, high-profile Republicans aren’t helping the case.

The hapless presidential campaign of Florida Gov. Ron DeSantis is one example. Among other issues, the Republican governor has cultivated a reputation for opposing ESG investing, highlighted by a high-stakes legal feud with Florida’s top employer, Disney, over LGBTQ rights.

Another example is the looming impeachment of Texas Attorney General Ken Paxton, a prominent anti-ESG Republican, on charges of corruption and bribery. His wife’s reported involvement with a shell company has raised additional questions about allegiance to the principles of fiduciary duty.

Looming over all this is climate change, a factor from which Florida, Texas and other anti-ESG states are hardly immune. With the exception of fossil energy stakeholders, the rising threat of climate risks will continue to influence and motivate corporate behavior regardless of the outcome of the upcoming 2024 proxy season.

Tina writes frequently for TriplePundit and other websites, with a focus on military, government and corporate sustainability, clean tech research and emerging energy technologies. She is a former Deputy Director of Public Affairs of the New York City Department of Environmental Protection, and author of books and articles on recycling and other conservation themes. To see the original post, follow this link: https://www.triplepundit.com/story/2023/esg-down-not-out/782776

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Tags: accountability, ALEC, Anti-ESG, Bloomberg, corporate social reponsibility, corporate social responsibility, CSR, ESG, green marketing, responsible brands, S&P Global, SIFMA, sustainability, sustainable branding, sustainable brands
Categories : Climate Change, corporate social responsibility, DEI, ESG, social responsibility

Fairtrade: US consumers prioritise supply chain transparency

9 09 2023

By Lucy Buchholz from Sustainability Magazine • Reposted: September 09, 2023

The 2023 Fairtrade America Consumer Insights report reveals that 61% of Americans now identify the Fairtrade label, marking a 20% increase since 2021

The world’s most recognised label for social justice and sustainability, Fairtrade America, shared that recognition for the mark has more than doubled in the last four years – marking monumental progress.

According to the 2023 Fairtrade America Consumer Insights, 61% of American consumers now recognise the Fairtrade Mark, an increase of 20% from 2021.

The online study – which surveyed 2,000 American consumers and 11,000 from across 12 countries – disclosed that four in five consumers are willing to pay more for ethical and sustainability-sourced products, despite the cost of living crisis. Additionally, these findings demonstrate that shoppers are prioritising transparency amongst supply chains.

“Shoppers in the US are driving change with their purchasing power,” said Amanda Archila, executive director of Fairtrade America. “We are energised by these results and remain focused on increasing the US market for Fairtrade-certified products by meeting consumers where they are in their sustainable shopping journey and building strength with farming communities around the world.

Consumers demonstrate a growing trust in the Fairtrade mark

As trust in the Fairtrade label has steadily grown, 85% of US shoppers believe that featuring the label positively influences their perception of a brand.

In fact, two out of every three shoppers familiar with Fairtrade prefer retailers that stock certified products and globally, the Fairtrade mark remains the world’s most recognised ethical label, with 71% of shoppers having encountered it.

Among Fairtrade-certified products, coffee takes the lead with 48% recognition, and consumers are willing to pay up to 35% more for a bag of Fairtrade-certified coffee. Fairtrade chocolate closely follows with 43% visibility, and shoppers are ready to pay a premium of up to 55% for a Fairtrade-certified chocolate bar.

“We firmly believe that businesses can grow responsibly while ensuring that farmers and workers who grow our favourite foods including cocoa, coffee and bananas get a fairer deal,” Archila, adds. “And it’s clear that consumers are demanding the same.”

To see the original post, follow this link: https://sustainabilitymag.com/articles/fairtrade-us-consumers-prioritise-supply-chain-transparency

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Tags: accountability, corporate social reponsibility, corporate social responsibility, CSR, ESG, Fairtrade, Fairtrade America, green marketing, responsible brands, sustainability, sustainable branding, sustainable brands
Categories : Climate Change, corporate social responsibility, ESG, reputation management, social responsibility, sustainability, sustainable brands

5 Ways To Demonstrate Your Brand’s Social Responsibility

9 09 2023

Photo: Shutterstock

By Maggie Ellison from myhfa.org • Reposted: September 9, 2023

Are you aware of your surroundings? In tune with movements, trends, and fads? Understanding of the dynamic shift of generational mindsets? Giving back in big ways? Sharing your commitment to good? Consumers practically demand brands to share a deep compassion for the community they serve.

In a world of increasing social awareness, today’s consumers seek more than just a product or service. They’re seeking brands that align with their values and are dedicated to positively impacting society. According to one study, 70% of consumers said it’s important for brands to take a stand on social and political issues. It’s no longer a question of whether consumers care about brands being socially conscious but how you can integrate community and caring into your business. When you demonstrate your brand’s social responsibility, it isn’t just a marketing strategy – it reflects your values and commitment to making a positive impact.

Here are five ways to demonstrate your brand’s efforts toward corporate social responsibility:

Foster Employee Engagement

A great place to start showcasing your brand’s dedication to the community and the world is by starting with your team. One study found that 60% of employees choose a workplace based on their beliefs and values. Establishing core values will help guide you and your employees and serve as a starting point for determining appropriate causes to support. Encourage your team to get involved with volunteerism and partake in discussions about company values to help them develop a connection to the cause your company is championing. A team that believes in its cause is most likely to amplify your brand’s positive impacts!

What can you keep doing or start doing to ask your employees what matters to them?

Advocate for Causes That Align with Your Company Values

Pick a social or environmental cause that resonates with your brand’s values and aligns with your audience’s interests. From climate change to social inequity, you can use your platform to raise awareness and showcase your brand’s dedication to current events. 58% of consumers will buy or advocate for a brand based on their beliefs and values. Word-of-mouth marketing like that builds trust and community around a brand that is difficult to replicate any other way. Include messaging on furniture tags highlighting the cause – did a tree get planted for every couch produced? Did a child in need receive a backpack of school supplies for every hand-crafted table made in an impoverished area? Let people know that. Signage, tags, literature, social media tagging, and marketing messaging are easy ways to translate what matters to your customers. Commit to the commitment.

How can you highlight in all marketing channels your commitment to a cause?

Partner with Charitable Organizations

Collaborating with established organizations will ensure your efforts have a lasting impact and provide tangible support to the cause you’ve chosen to promote. This is a powerful way to leverage your brand’s reach for a good cause. Allow the partner organization to host a table within your brick-and-mortar, include their messaging in banner ads on your website, provide a give-back option for your customers to round up, and provide those funds to a non-profit that aligns. Another terrific opportunity is co-branding products or services or offering a simple add-on for customers where a percentage or all proceeds benefit the cause. This plus-up can be powerful, and the impact is far-reaching. Building trust with your audience is vital to a brand’s success, and partnering with trusted organizations to make change happen will show customers that your dedication to social change is more than a marketing tactic. 40% of consumers believe the best way for brands to display social responsibility is to collaborate with a non-profit organization dedicated to that cause.

What can you do to amplify your chosen cause and provide impact?

Engage with Your Community

Engage with your community by sponsoring local events or supporting local charities to connect with your audience face-to-face. An experiential marketing campaign that directly engages with your audience about the causes your brand cares about can foster a sense of community and shared responsibility by educating attendees and encouraging them to participate in problem-solving actively. Experiential marketing campaigns can boost your brand awareness and create loyal customers. 74% of consumers said engaging with experiential activations made them more likely to buy the promoted product. Also, 98% of consumers create social content from their experiences, and 100% share the content they create. Highlighting a social issue that resonates with your brand during community events can foster a stronger connection with your audience.

What can you step up to sponsor, or what events can you showcase your brand that impacts the community?

Be Transparent and Authentic

Throughout it all, communicate with transparency and authenticity to naturally build customer trust. By clearly articulating your brand’s core values and mission, your audience will understand what you stand for and develop a deeper relationship with your brand. In 2022, 60% of consumers said that trustworthiness and transparency were the most important traits of a brand. Consumers want to know that their money is going to a trustworthy company that will use its power to improve the world. This is why it’s important to regularly showcase your company’s steps to contribute positively to society, like charitable partnerships, co-branded products, advocating for products that are making a difference, and community engagement. By continuing to promote a social cause relevant to your brand, your audience will come to trust you for what you provide and what you stand for as a company.

How is your brand speaking to the public? Is it authentic?

Integrating social responsibility into your brand identity goes beyond superficial gestures – it’s about creating a meaningful and lasting impact. Whether through sustainable practices, ethical partnerships, educational campaigns, or community engagement, every step your business takes can contribute to a better world and deeply resonate with your customers. By aligning your brand’s core values with meaningful action, you’re building a loyal fan base and driving positive change. Remember, when you demonstrate a socially responsible brand it is more than a label; It’s a catalyst for change, and consumers today demand commitment.

To see the original post, follow this link: https://myhfa.org/5-ways-to-demonstrate-your-brands-social-responsibility/

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Tags: accountability, corporate social reponsibility, corporate social responsibility, CSR, DEI, ESG, green marketing, responsible brands, sustainability, sustainable branding, sustainable brands
Categories : corporate social responsibility, DEI, ESG, reputation management, social responsibility

U.S. teachers are struggling to teach sustainability in schools

8 09 2023

A recent poll by the Smithsonian Science Education Center and Gallup finds that while a majority of U.S. teachers say they want to teach lessons in sustainable development, they do not have the supports in place to do so. Stock Photo via Getty Images

Topics like climate action and clean energy are some of the least likely topics to be found within sustainability school lessons, according to a Smithsonian-Gallup poll. By Anna Merod from K-12dive.com • Reposted: September 8, 2023

U.S. teachers feel they have far fewer supports to teach topics on sustainable development compared to those instructing in countries like Brazil, Canada, France and India, according to a poll released Tuesday by the Smithsonian Science Education Center and Gallup.
Educators in those four countries were three times more likely on average than U.S. teachers to say they have enough support to instruct on sustainability — a stark difference of 60% versus 17%.
Despite the lack of resources, the poll found a majority of U.S. teachers see value in teaching sustainability: 83% say such curriculum can have a positive global impact, while 79% say it can benefit local communities.

Insight:

Socio-scientific topics within sustainability curriculum are especially nonexistent in U.S. classrooms, as teachers shared that this type of content was the least likely to be found in their lessons, according to the Smithsonian-Gallup poll.

For instance, 32% of U.S. educators said climate action, as well as clean water and sanitation, are dedicated parts of their curriculum. While 31% cited clean energy and responsible consumption, and 26% said information about sustainable communities was included in lessons.

“We were shocked to see that the topics we would define as socio-scientific like climate action, sustainable communities, clean water, clean energy were at the bottom of that list” in regard to U.S. curriculum standards, said Carol O’Donnell, director of the Smithsonian Science Education Center.

The United Nations Educational, Scientific and Cultural Organization defines sustainable development as “a resolution to meet the needs of the present without compromising the future.” Specifically, the United Nations created 17 goals tied to sustainability that fall under a “shared blueprint for peace and prosperity for people and the planet, now and into the future.”

The Smithsonian-Gallup poll, which surveyed over 2,500 teachers and administrators in spring 2023, explored 11 of those 17 goals, including climate action, clean energy, clean water and sanitation, innovation, justice, reducing inequality, and good health and wellbeing.

U.S. teachers also said they have a lack of expertise (74%) and instructional materials (76%) to teach sustainability.

“It’s just a reality that STEAM standards or STEM standards don’t exist in large scale across the board in schools and districts,” said Monique Chism, undersecretary for education at the Smithsonian. “So when you think about curriculum resources, professional development, time for teaching this content — it’s not surprising, because it’s not something that’s been a priority that’s been placed on standards and curriculum in the system.”

While climate education pushback has surfaced in recent years, Chism said she prefers to believe the gap in resources to teach sustainable development is likely unintentional. Based on the survey, Chism said it’s hard to exactly pinpoint why K-12 schools often lack these supports.

But as schools continue to face teacher shortages, brace for budget shortfalls, and address much-needed maintenance repairs, administrators and teachers are really trying to do the “best they can” while trying to solve these broader challenges, Chism said.

Chism added it’s clear from the poll that teachers have a desire to teach sustainability intertwined with other subjects beyond science. More than 70% of U.S. teachers each said instructing on this topic can make science more accessible to students and increase their interest in current events.

State curriculum standards are beginning to shift toward sustainable development topics, O’Donnell added. For instance, she said, environmental science standards are integrated into science lessons throughout California schools. New Jersey and Connecticut now require lessons on climate change and climate education, respectively.

“We are starting to see states start to come up with this idea that sustainability matters,” O’Donnell said.

To see the original post, follow this link: https://www.k12dive.com/news/smithsonian-poll-us-teachers-sustainability-curriculum/692983/

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Tags: Climate Education, corporate social reponsibility, corporate social responsibility, CSR, ESG, responsible brands, Scientific and Cultural Organization, STEAM, STEM, sustainability, sustainable branding, sustainable brands, United Nations Educational
Categories : Climate Change, corporate social responsibility, DEI, ESG, social responsibility, sustainability

Emerging tech will empower conscious consumers

8 09 2023

Image: Maskot/Getty Images

By Ken Moore from Fast Company • Reposted: September 8, 2023

Most consumers today want to buy from brands that align with their values—it’s more important to them than cost and convenience, brand loyalty, or product functionality. They will pay more for products and services that tangibly support their social, ethical, and environmental objectives—and abandon those that don’t. This sentiment has strong roots in the youngest consumers: An extraordinary 84% of teens told researchers they strive to buy based on their beliefs.

There is mounting evidence that companies benefit when they heed this message: A study from South Korea, published in January, found that food and beverage companies with strong reputations for their environmental and social initiatives generate more consumer trust and positive word-of-mouth. Unilever’s purpose-led Sustainable Living brands have grown more than the rest of its business. And new research from McKinsey found that products that made claims about their environmental, social, and governance (ESG) performance outsold products that did not.

This seems like a simple equation: Consumers will reward companies with convincing ESG stories, and those brands thrive. There is a problem, however. Only 4 in 10 consumers say they have adequate data to make sound sustainable purchasing decisions. This may explain the complaint that customers say they support green, ethical, socially responsible companies with their wallets—but often don’t. They lack the information they need to follow through.

In fact, most businesses struggle to present a thorough, compelling story detailing their environmental impact: Only 13% can map their end-to-end supply chain and four out of five have no visibility beyond their immediate suppliers. Executives surveyed by IBM acknowledged that inadequate data is the biggest obstacle to their ESG efforts.

DATA-DRIVEN INSIGHTS

This will change over the next 5 to 10 years as companies deploy emerging technologies that unlock data to enable smarter supply chains and measure their end-to-end carbon footprint, organic production, recycling track record, and other outcomes. These include:

Connected supply chains that link fragmented systems, technologies, and networks
Visibility technologies that provide a complete picture of supply chain operations, from procurement of raw materials to shipment and use of end products
Blockchains to create an immutable audit trail that tracks the provenance and the movement of goods and include verified information regarding suppliers
Internet-of-things networks that improve supply chain transparency, and collect data supporting ESG compliance
AI, machine learning, and predictive analytics to extract insights from supply chain data. Generative AI has the potential to do the same with unstructured ESG data.
AI, blockchains and open data frameworks to enable Scope 3 emissions reporting

DELIVERING THE MESSAGE

Companies with stellar sustainability results will presumably be the first to leverage these technologies to establish their credibility with consumers and other stakeholders including regulators, shareholders, and current and potential employees. If the population of value-driven consumers is as large and committed as it appears to be—particularly millennials and Gen Z—other companies will follow suit and new ESG reporting expectations will be set. Conscious consumers will be empowered to vote with their wallets.

Enterprises will also turn to emerging technologies to share this information with consumers precisely when, where, and how they want it—online, in the store, via QR codes printed on product packaging, through smart glasses and virtual reality (VR) goggles, or at the point of sale (digital or physical.) “With AR (augmented reality), brands can turn products, packaging, and places into digital discovery channels, surfacing their sustainability efforts through a humble QR code,” notes Zappar, an AR studio in Scotland.

Indeed, there is evidence this is an effective way to engage customers. Using AR to inform purchase decisions increases consumer confidence in the product, increases sales, and reduces returns.

CLOSING THE PERCEPTION GAP

Three-fourths of executives surveyed by IBM said their stakeholders understand their companies’ ESG objectives and performance, but there is a disconnect. Only about 40% of consumers said they have enough information about corporate sustainability to make purposeful decisions about what to buy and where to work.

That’s a problem. It’s no time for business leaders to assume their value-driven customers are on board, because consumers have made it clear they will jump ship for a competitor that can demonstrate strong ESG credentials. As we approach an era in which all companies will have the means to do that, leaders can seize a competitive advantage by providing conscious consumers with information that empowers them to do what they find difficult today—make purchase decisions that reward companies that align with their values.

Ken Moore is the chief innovation officer at Mastercard and expert-in-residence at Harvard Innovation Labs. To see the original post, follow this link: https://www.fastcompany.com/90948629/emerging-tech-will-empower-conscious-consumers

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Tags: accountability, corporate social reponsibility, corporate social responsibility, CSR, ESG, green marketing, responsible brands, sustainability, sustainable branding, sustainable brands
Categories : Climate Change, DEI, ESG, social responsibility, sustainability, sustainable branding

We Can Eat Our Way Out of the Climate Crisis

4 09 2023

Image: UCLA

By Antony Yousefian via Sustainable Brands • Reposted: September 4, 2023

Applied to food supply chains, ambient IoT allows farmers, distributors, grocers, regulators and consumers to know where food came from, how far it traveled, how it was transported and stored, and what condition it’s in — in real time.

The world can’t count on carbon offsets to deliver us from the climate crisis. As helpful as it may be for corporations to offset some of their emissions, the greatest force for good is the everyday citizen. Specifically, it’s the well-informed, carbon-savvy grocery shoppers who buy sustainably grown produce — not just because they know the carbon footprint of bananas, zucchini, or beef; but because it’s also clear which farmers are regenerating the land to support a healthy planet.

How on earth can shoppers know? By tracking everything, everywhere, all the time.

My time in the financial markets drew me to climate tech startups and the importance of impact investing. Indicators from our planet were signaling code red. At the same time, the increased frequency of supply chain disruptions from biodiversity decline and climate change was hitting corporate profitability.

Investment funds focused on environmental, social and governance (ESG) commitments were ballooning; but I struggled to quantify or have visibility into exactly which corporations, or their products, were actually “doing good.” Quantification of the E in ESG was a real problem; and it was a multitrillion-dollar opportunity that made sense on all levels.

Since then, I’ve been involved with various innovative companies committed to tackling the issue head on — from carbon removal in supply chains to restoring biodiversity in soils. The latter led me to agriculture technology (AgTech) and the cutting-edge field of the Ambient Internet of Things(IoT) — a system of ubiquitous Bluetooth tags and cloud-based software that makes anything traceable and intelligent.

One of my first ventures into AgTech was to leverage IoT to measure leaf temperatures, soil conditions and root health — all key to driving sustainable farming decisions. It gave food producers the tools to see or digitize their risks in real-time, make improvements, and share the results with the supply chain. But the cost to acquire the data was high, which hindered scalability.

Ambient IoT changes the whole calculus because it’s based on ultra-low-cost, battery-free, stamp-sized computer sensors that can go anywhere and communicate wirelessly with existing systems or off-the-shelf, standardized network devices. Applied to food supply chains, ambient IoT allows farmers, distributors, grocers and even regulators to know where food came from, how far it traveled, how it was transported and stored, and what condition it’s in — and not only back when the food was harvested, packed or put on a truck; but in real time.

Taken together, ambient IoT data — location, time-in-transit, temperature, humidity and more — provides crucial primary data to calculate the carbon footprint not just of the food companies involved but of every individual product on a supermarket’s shelves. It’s a chief sustainability officer’s dream. Armed with this information, we as citizens can be given a choice to select food products that make the planet healthier — to do our part by eating sustainably.

Carbon visibility and trust

In a recent study by the Boston Consulting Group, 77 percent of consumers said they were concerned about the sustainability of the food they buy; 63 percent said they were trying to shop more sustainably. Their challenge? Acting on their concern.

There are a couple of reasons it’s hard for consumers to shop for sustainable food (or for that matter, sustainable clothes, cosmetics or household supplies). First is that they don’t always know which groceries are, in fact, sustainable. Second is that they’re not sure who they can trust.

In stores, consumers are bombarded by signs and food labels touting “local,” “organic” or “sustainable.” But when it comes to climate impact, such messaging can be confusing, if not misleading. Locally grown vegetables may have been stored in carbon-hungry refrigeration or cultivated in greenhouses that emit more carbon than a slow boat from another continent. And those organic fruits may have been grown with regenerative practices on a different continent and flown (then, driven miles) to the store. Yet each product does, indeed, have an individual carbon footprint that can be traced.

But in the absence of product-level carbon data, consumers look to brands for guidance, seeking those committed to “net zero” or other pledges to protect the climate. These are laudable efforts but susceptible to what the public and regulators have come to identify asgreenwashing — an act of climate fraud best combatted with credible, real-time data.

Not to mention, even responsible companies can only report on their sustainability commitments annually or quarterly — whenever a report is finished. Even monthly reporting falls short of what should be the standard for carbon tracing in the food chain: real-time, product-level carbon visibility. And only the ambient IoT can achieve that.

Real-time carbon data

Consumers have become skeptical, with some justification. Recently, a Dutch environmental foundation — in association with other food groups — reported on the pervasiveness of greenwashing in the food supply chain, which experts say contributes one-third of global emissions.

In response, regulators have taken it upon themselves to require producers of all kinds to prove sustainability claims through data. The best way to do it reliably and consistently is through meaningful, real-time metrics delivered through a credible medium.

Consumers live in a real-time world of social media feeds, fitness trackers and generative AI. Carbon visibility should be the next killer app — not only as it relates to what people eat but what they wear, where they vacation, and more.

Whether on people’s smartphones or via smart, digital shelf signage, supermarkets can use ambient IoT data to deliver carbon visibility the same way they engage shoppers in points clubs, digital coupons, and other social media-style promotions. Yes, gamification can help save the planet when it leads to more sustainable food consumption.

Unlocking the benefits of ambient IoT

Real-time carbon visibility is just part of the ambient IoT equation. Companies that deploy an ambient IoT infrastructure can solve other challenges, some that further support their climate goals and others that align the planet with profitability.

In addition to tracking the carbon footprint of products in their supply chain, companies can use ambient IoT data to capture missed revenues and reduce food waste. Ambient IoT can collect environmental data on elements such as temperature and humidity, even in stores and trucks, which determine freshness and shelf life. And it produces data to comply with new supply chain regulations and ensure food safety. Until now, most compliance checks have been manual, expensive and ad hoc. Ambient IoT automates compliance and cuts costs because now every product effectively shouts its status (i.e., sends data packets) on the way to supermarket shelves.

But ambient IoT is capable of even more. In the long run, to combat climate change, we must use it to restore biodiversity and put carbon back into the ground. The food system can achieve these goals through regenerative agriculture, which improves the health of soil and creates healthy plants and nutrient-rich food. There is already an ecosystem of innovative solutions to help measure the process of regenerative agriculture and accelerate its adoption. Ambient IoT has a role in that measurement.

Ultimately, ambient IoT will help mobilize data about the land and nature’s status. It can determine whether that next meal is traceable to a healthy, sustainable, regenerative source. Already, major initiatives like the EU’s regulation on deforestation-free products and the USgovernment’s Food Safety Modernization Act will require companies to prove they know where food comes from. This is a game-changer because it requires visibility into the flow of goods and materials and the ability to identify who is contributing to regenerating the land.

I’m confident that when citizens are turned onto this level of visibility, we’ll see them over-consume delicious, healthy meals. That’s how we eat our way out of climate change.

To see the original post, follow this link: https://sustainablebrands.com/read/defining-the-next-economy/eat-our-way-out-climate-crisis

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Tags: accountability, AgTech, corporate social reponsibility, corporate social responsibility, CSR, ESG, green marketing, l0T, loT, responsible brands, sustainability, sustainable branding
Categories : Climate Change, DEI, ESG, responsible brands, social responsibility, sustainability, sustainable branding, sustainable brands

Commons App Informing, Facilitating Mass Shifts in Climate-Influenced Consumer Living & Spending

1 09 2023

Image: Commons

Highlighting the impact of individual purchases and their associated emissions output, the app — fresh off a large funding round — is evolving to meet the daily spending directives of its users. By Geoff Nudelman from Sustainable Brands • Reposted: September 1, 2023

There’s a lot of emphasis being placed on consumer spending as a real way to drive measurable impact in the fight against climate change; but for many everyday consumers, it remains one of the most confusing avenues of action. There are dozens of standards and certifications to understand, along with a never-ending stream of data connected to purchases (both good and bad).

That’s where the potential of consumer spending/emissions measurement app Commons comes in. The app — which was launched in 2019 as Joro and relaunched this March under its current name — allows consumers to connect credit cards, bank accounts and other financial information to a system that measures the emissions output of every purchase; and it offers multiple ways to reduce impacts — whether through simple switches, more involved spending transitions or via the purchase of verified offsets.

“We learned a lot about what people were actually looking for,” Commons founder Sanchali Pal told Sustainable Brands®, noting that the app began primarily as a carbon tracking and offsetting platform. “It’s more about the spending choices we make — and that this is not one person’s responsibility, but the collective’s.”

The app is only a few years old; and while the company doesn’t share full user data, Pal said users are in the “tens of thousands.” Commons is currently available in the US and Canada(with most users in the former), and mostly used in large cities by the 25-55 demographic. So far, the app has raised $13.5 million — the company says investors include Sequoia Capital, Norrsken, entrepreneurial platform Incite, climate investors Amasia; and the founders of Headspace, Fitbit, Candy Crush and Nest; as well as public figures including actor Maisie Williams, Incubus’ Mike Einziger and Arrive, (the VC arm of Jay-Z’s Roc Nation empire).

Like a lot of tech companies and apps, the leverage is in the collected data — and the trends and spending shifts that the data show. Commons’ demographic, which is likely somewhat affluent (Pal shared that most users have a credit or debit card), offers a small snapshot of how these changes can drive impact in large, urban areas in the US and Canada. It also helps users understand the realistic impact of their purchases.

“Something that people don’t realize is that the goods and services we buy also have a footprint,” Pal says. “People are quite surprised by something like a t-shirt and how that compares to the footprint of eating a burger, for example — or how driving can have a similar footprint to buying makeup. Products and services having that footprint is a novel idea for many people.”

Pal notes that one area where the app is noticing a larger shift is in buying secondhand. The number of Commons users shopping secondhand grew 48 percent between 2021 and 2022; and Pal says content on the app and website associated with shopping “more sustainably” for apparel is some of its most popular.

There are also broader shifts happening in the ways Commons users get around. According to its 2022 Impact Report, 40 percent more Commons users took public transit in 2022, compared to 2021; and users already taking public transportation did so 75 percent more often. App users also bought 63 percent less gas than the average US consumer in 2022 and 36 percent less gas than in 2021. Lastly, it’s no surprise that Commons users also use EV stations at a high clip.

According to Pal, in 2022 the average user reduced their emissions by 20 percent and saved $200 a month via all the app has to offer.

To provide realistic updates on the impact of a particular purchase, Commons updates its data daily, monthly, quarterly or annually — depending on the specific metric. Pal notes the example of gas prices, which the company analyzes daily since the price per gallon regularly fluctuates; and the numbers Commons uses also needs to reflect inflation and other economic movers. In other cases, the movement isn’t enough to measure more than once every few months (for something such as more expensive durable goods).

Education a key component

Almost anywhere you move inside the Commons app, there’s an opportunity to learn. Whether it’s about the impact of taking one less flight or comparing your footprint to those of other users; there’s no shortage of measurable, comparable and, most importantly, actionable advice.

“Users may be looking for the kind of thing they didn’t know how to act on before using our products,” Pal says. “They may have been interested in what could have the most impact in their lives but didn’t know where to start. We have found that folks who are quite educated (on sustainability) still find the product useful.”

I was rather impressed by this once I linked up my own credit card and saw my spending data populate through the app. The home page shows a graph estimating the emissions output of all my purchases on that card in the current month and compared to prior months of my choosing.

One of the app’s newest features is breaking down purchases under a “sustainable purchases” category — which singles out specific purchasing categories such as public transit, rideshare, renewable energy and more. Under Commons’ classifications, I make few “sustainable purchases” — which I’m not particularly sure I agree with, but I would assume that category will continue to be refined.

I also appreciated a level of transparency and discussion around Commons’ choices of offsets. The company’s Offset Portfolio operates under four pillars, and users can take a rather deep dive into understanding the value and impact of each offset under each pillar. Inside the app, I was prompted to pay a certain amount each month to support these offerings (somewhat commensurate with my estimated emissions output) — which, if I took the time to sift through all of the information, I’d likely find a compelling way to reduce my personal impact.

Of course, only having “tens of thousands” of users as the sample population is ultimately a small slice of the entire consumer pool — but certainly enough to potentially influence some changes within a certain, finally comfortable section of the spending public. I could see myself making some small changes based on seeing the data there in plain sight. Once you have the graphs and metrics nicely laid out in front of you, it becomes clearer to see how the collective impact in how and where we spend could make a big difference.

“One of the advantages of what we’ve built so far is that we can connect with you no matter where you spend money,” Pal says. “Ultimately, we’re trying to shift spending behavior and show how money matters.”

To see the original post, follow this link: https://sustainablebrands.com/read/behavior-change/commons-app-shifts-climate-influenced-consumer-living-spendinghttps://sustainablebrands.com/read/behavior-change/commons-app-shifts-climate-influenced-consumer-living-spending

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Categories : Climate Change, corporate social responsibility, DEI, ESG, social responsibility, sustainability

Human Resources most influential’s top priorities: sustainability, ESG and achieving net zero

1 09 2023

By Matt Gitsham from Human Resources Magazine UK • Reposted: September 1, 2023

This year’s HR Most Influential (HRMI) survey found that there was a strong view that responsibility for environmental, social and corporate governance (ESG) sits with everyone in the business – but that HR has a vital role to play, alongside leadership as supporter, partner and educator.

Approximately 65% of survey respondents said their organisation had a formal strategy for improving performance on ESG/sustainability.

In most cases, it appeared that this strategy was being driven either by the board or some kind of central ESG function.

HR practitioners were, however, playing a key role in supporting the strategy from a people perspective, with a particular focus on inclusion and diversity, working conditions, fair pay, wellbeing and ethical business practice.

“Sustainability, ESG and helping businesses go net zero are now crucial components of business and people strategies,” said one respondent.

“HR needs to be at the decision-making table and influence from there,” said another.

“To make HR the ‘owner’ would run the risk of these important topics being ‘HR projects’. ESG/sustainability needs to be a belief system and not just a process.”

Educating the workforce

Survey respondents also felt HR had an important role to play in educating the workforce, with 52% saying leadership development on ESG/sustainability was being offered across the business.

“HR can help people unlock their understanding of how to embed this in day-to-day work”, and “HR has a key role in the education of the workforce, to ensure they understand ESG/sustainability and the impact of their decisions,” were among the comments.

There was a recognition among HR professionals that a focus on ESG could be a competitive advantage when it comes to recruitment, retention and brand reputation.

Employees were increasingly looking for organisations that support this agenda, and were voicing a desire to work for companies with strong values and a proactive commitment to fighting issues such as climate change and inequality.

“Ultimately, people are voting with their feet and basing consumer and employment decisions on the sustainability actions of companies,” said one respondent.

Developing sustainable leaders

It is good to see this growing recognition among HR professionals of the important role they have to play in both championing and supporting ESG efforts.

At Hult International Business School, we have been conducting research specifically into how leadership roles need to change in response to the critical environmental, social and human rights challenges facing us all.

Our findings underline the need for innovative learning and development interventions to help leaders, managers and future talent navigate the sustainability transitions that are happening right now.

Building literacy on sustainability and ESG issues is of course an important starting point, but our research suggests that first hand experiences are at the heart of what it takes for leaders to build the emotional connection and commitment to put the sustainability agenda front and centre in their work.

For the leaders interviewed in our study, this might have meant experiences such as engaging with people living in poverty, personal experience of the impact of climate change, or experience of the changing interests of key partners and stakeholders.

Influential mentors and participation in professional networks focused on ESG had also been formative experiences for many of our interviewees.

This has implications for the design of learning and development, as well as for the way HR approaches the wider task of managing talent and succession planning programmes.

Leadership development activities need to be structured to create opportunities for current and future senior leaders to have precisely these kinds of personal, first-hand experiences, through powerful experiential learning.

HR professionals also need to value these kinds of life experiences when making decisions about recruitment, career development and succession planning, and make sure they are embedded in the HR processes that underpin these.

As one survey respondent said: “It’s time for HR to contribute and view this as an opportunity to strengthen a purpose-led EVP just as much as an opportunity to help save our planet.”

The next stage of our research will look at the evolving role of HR in sustainability, surveying what kinds of activities HR departments are increasingly engaging in in relation to sustainability and ESG, and what they are learning about what works.

Matt Gitsham is director of the sustainability research lab at Hult International Business School. To see the original post, follow this link: https://www.hrmagazine.co.uk/content/features/hr-most-influential-s-top-priorities-sustainability-esg-and-achieving-net-zero/

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Categories : Climate Change, corporate social responsibility, DEI, ESG, social responsibility, sustainability

The Global Rise of Healthy Building Policy

30 08 2023

From the International Well-being Institute via CSR Newswire • Reposted: August 30, 2023

The past few years in the United States have seen remarkable progress in the adoption and implementation of healthy building policies. The U.S. Conference of Mayors (USCM) has issued two unanimous policy resolutions, one in 2020 and another in 2022, endorsing healthy buildings as a powerful tool to advance public health and an essential defense against future health threats. Heeding the call, cities like Miami, Jersey City and Oklahoma City are now leading by example, scaling the WELL Health-Safety Rating across a portfolio of municipal buildings. The Biden Administration too has shined a bright light on healthy buildings with the first ever White House Summit on Indoor Air Quality and the launch of the Clean Air in Buildings Challenge, not to mention CDC’s recent guidance on ventilation and GSA’s efforts to drive healthy building research and promote the Health in Buildings roundtable.

It’s clear that, increasingly, governments at all levels are stepping up to help create spaces that support health and well-being. And just as the momentum continues to build in the U.S., a similar trend is unfolding in other parts of the world, reflecting a universal demand for healthier spaces.

In the United Kingdom, the Department for Work and Pensions (DWP) and Department of Health and Social Care (DHSC) in July announced efforts to increase uptake of occupational health services in the workplace. The policy effort encourages employers to ramp up these services to help employees access vital mental and physical health support at work, particularly for those working in small and medium-sized enterprises.
In the United Arab Emirates, The Dubai Land Department (DLD)’s Real Estate Regulatory Agency (RERA) has officially adopted the WELL Health-Safety Rating and is encouraging organizations to align with the program in jointly owned properties (JOPs) and enhance investor confidence.
In the European Union this past spring, the EU Parliament passed its Energy Performance of Buildings Directive (EPBD), a key legislative tool to set and implement building decarbonization goals. The approved EPBD included an important healthy building provision, Article 11a, titled, “Indoor Environmental Quality,” which says, “Member States shall set requirements for the implementation of adequate indoor environmental quality standards in buildings in order to maintain a healthy indoor climate.”
In Australia, the Australian Health Protection Principal Committee, the national government’s top health protection committee, announced that it was making indoor air quality a national priority. “Today is about putting this on the agenda, on the map,” said Member of Parliament Dr. Michelle Ananda-Rajah, a longtime advocate of prioritizing IAQ and who, earlier this year, also hosted a Clean Air Forum earlier this year.
In Singapore, the National Environmental Agency recently issued updated guidance on improving ventilation and indoor air quality in buildings to better support an healthy indoor environment.

Globally, healthy building policies are shaping more than just urban landscapes, they’re transforming how our indoor spaces protect and enhance our health. As the global understanding deepens about the pivotal role healthy buildings can play in improving public health, there’s a mounting urgency to utilize policy to accelerate spaces that advance human health and well-being. Together, these global policy efforts will help accelerate the healthy buildings movement, enabling their benefits to reach more and more people around the world.

To see the original post, follow this link: https://www.csrwire.com/press_releases/782271-global-rise-healthy-building-policy

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Tags: accountability, Clean Air in Buildings Challenge, corporate social reponsibility, corporate social responsibility, CSR, ESG, green marketing, GSA, Healthy Buildings, sustainability, sustainable branding, sustainable brands, USCM
Categories : Climate Change, corporate social responsibility, ESG, reputation management, social responsibility, sustainability, sustainable branding, sustainable brands

Introducing Resilience Science: A Visionary Shift for Corporate Strategy and Reporting

29 08 2023

By Luke Heilbuth via Sustainable Brands • Reposted: August 29, 2023

Climate resilience is the ‘resilience of a company’s strategy and business model to climate-related changes, developments and uncertainties.’ This language is worth reflecting on, as it brings the concept of resilience science into mainstream business thinking.

Background

In June, the International Sustainability Standards Board (ISSB) issued its inaugural standards — IFRS S1 and IFRS S2. The Standards create a common language for companies to report on how sustainability and climate-related risks and opportunities affect their prospects. They reflect what investors want, and will form the basis of mandatory climate-related reporting requirements in many advanced jurisdictions (aside from the United States).

This article explores the most interesting part of IFRS S2: the climate-resilience assessment. Building on the TCFD — which IFRS S2 has now supplanted — climate resilience is defined as the “resilience of a company’s strategy and business model to climate-related changes, developments and uncertainties” [emphasis added]. This language is worth reflecting on, as it brings the concept of resilience science into mainstream business thinking.

Tipping points and ignorance

Invented by Canadian ecologist C.S. “Buzz” Holling in 1973, resilience science explains how human-natural systems (the interconnected relationship between humans and the environment) do not exist in a fixed state — but are instead characterized by constant change and tipping points.

This is not how businesspeople usually think. Instead, they assume that a complex system — like an organisation — is stable, isolated, measurable and linear. Take COVID: Most of us thought things would be disrupted for a time before ‘bouncing back’ to normal. The mistake is right there in the language. Post pandemic, we didn’t go back. The way we live and work changed.

A better understanding of the world acknowledges that systems go through adaptive cycles of growth, decay, restructuring and renewal. As business leaders, we must acknowledge our lack of certainty and control. We should reimagine our actions, plans and strategies as experiments that, as in science, must be constantly re-evaluated.

As author Nassim Taleb says in Fooled by Randomness, probability is “the acceptance of the lack of certainty in our knowledge and the development of methods for dealing with our ignorance.”

That’s why IFRS S2 is not the dry reporting standard it appears at first view, but something quite visionary — it embraces uncertainty and consents to our ignorance. It asks us to see through the ‘illusion’ of the pristine, perfectly self-contained balance sheet — where the ledger is always squared, and all things are known.

Focus on the process

To explain the “changes, developments and uncertainties” that arise from the physical and transition risks and opportunities of climate change, a company is required to use scenario analysis. This is not meant to predict what might happen in the future — but to offer up ‘what if’ scenarios to help your business better think through its options and plan accordingly.

IFRS S2 says you must disclose the “inputs and key assumptions” used in your scenarios — not just the result. In other words, your explanation of the process is essential. This is because investors want to test the quality of your thinking, rather than simply reading a claim that your business is resilient.

Staying practical

The method of scenario analysis you employ is up to you, and should be “commensurate with your circumstances.” For most businesses, an expensive, quantitative-modelling exercise is not required or even the best option. The authors of IFRS S2 recognize the burden that companies face in complying with a science-based approach to climate change.

As a result, they have sought to navigate a practical approach that requires the use of “all reasonable and supportable information” (the floor of the effort required) available at the reporting date without “undue cost or effort” (the ceiling). The concept is explained by ISSB Vice Chair Sue Lloyd in this webinar. The IPCC, IEA and PRI all provide publicly available scenarios which provide the basis for a useful, cost-effective and strategic approach.

Finally, your company is not required to perform a scenario analysis as part of the reporting effort each year. The minimum requirement for updating your scenarios is whenever you review your corporate strategy as part of the strategic planning cycle. That said, each year you must revisit the assumptions that underpinned your analysis and consider whether any changes affect the assessment of your company’s climate resilience. The IFRS refers to this annual update as a “resilience assessment.”

Scenario analysis done well will ultimately help you fine-tune your overall strategy and business model — enhancing your business’s prospects and resilience against the vagaries of an uncertain future.

In recent years, investor portfolios have grown too big to avoid systemic risks such as climate change. Recognizing their vulnerability to black swans, institutional investors have pushed investee companies to prioritize resilience over short-term cost optimisation; the IFRS Standards reflect the trend. As Taleb says, the defining characteristic of change is that it cannot be predicted: “This is the central illusion in life — that randomness is a risk — that it is a bad thing.”

To see the original post, follow this link: https://sustainablebrands.com/read/new-metrics/resilience-science-shift-corporate-strategy-reporting

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Categories : Climate Change, corporate social responsibility, DEI, ESG, green marketing, reputation management, social responsibility, sustainable branding

Climate Finance Must Combat Climate Prisoners

29 08 2023

A demonstrator shows support for climate justice at an Earth Day rally in Washington, D.C. earlier this year. Image credits: Victoria Pickering/Flickr and Markus Spiske/Unsplash

By David Hunter from Triple Pundit • Reposted: August 29, 2023

Early next month, representatives from more than 500 banks from around the world will gather to explore how to promote sustainable development and “align financial flows” with the Paris Agreement on Climate Change. Participants in the upcoming Finance in Common Summit account for 12 percent of global investment annually with $23 trillion in assets combined, allowing for enormous potential impact.

Not surprisingly, financing energy transitions will be central to the discussions, including Just Energy Transition Partnerships (JETPs), or creative financing packages to support developing countries’ transitions away from coal. Four JETPs have been announced so far with South Africa, Indonesia, Vietnam and Senegal. India is next in line. G7 countries and development banks are instrumental to financing these initiatives.

But like anything that requires a massive infrastructure shift, transparency and accountability are essential to ensure that the billions of allocated dollars are actually used for their intended purpose. In the case of the JETPs, this means moving toward renewable energy to benefit all communities. Such transparency and accountability is only possible where local NGOs and civil society experts can participate freely and fully in public discussions, provide independent monitoring of social and environmental impacts, and support communities to advocate for their rights.

This is what the “just” aspect of the just transition is all about — which is why financial institutions should be paying very close attention to the situation of civil society voices in the countries they are prioritizing.

Take Vietnam as an example.

Two development banks — the International Finance Corp. and the Asian Development Bank — joined forces with the U.S., U.K. and other G7 nations to finance a $15.5 billion JETP with Vietnam. Meanwhile, in the last couple of years, the Vietnamese government has arrested and detained five of the country’s most prominent climate leaders who should be at the forefront of this process. The charges all relate to “tax evasion,” but ample evidence, including multiple declarations from U.N. experts and treaty bodies, point to these vague laws being used to silence environmental defenders in Vietnam.

One of the climate justice heroes currently serving a five-year prison sentence in Vietnam is Mr. Dang Dinh Bach (“Bach”), whom I know personally both as a former student and as a partner in a U.S.-funded law reform project. His work centered around protecting vulnerable communities from pollution, including plastic waste, asbestos and coal-fired power plants. I was impressed with his strong sense of values, always respecting the Vietnamese legal system and speaking highly of the government. He’s still in jail despite numerous high-level calls for his release and a U.N. opinion that found his imprisonment a “violation of international law” in the context of a “systemic problem with arbitrary detention” of environmental defenders in Vietnam.

Just a few months ago, another climate champion in Vietnam, Obama Foundation ScholarHoang Thi Minh Hong, was detained on similar charges, continuing this highly concerning trend. The U.N. and several governments, including the U.S. and the U.K., have all released statements calling for her release, but to no avail.

Internationally-renowned climate leader and Goldman Environmental Prize Winner Ms. Nguy Thi Khanh was recently released after serving 16 months in prison on similar tax-evasion charges. Environmental groups continue to face threats, and many have shut down in reaction to this chilling situation.

For all banks that will be participating in the upcoming Finance in Common Summit, these arrests should be a red flag. Even more so for the International Finance Corp. and the Asian Development Bank, as they have recognized the link between dissent and sustainable financing, having adopted specific policies protecting those who voice opinions about the projects they fund.

The World Bank, of which the International Finance Corp. is a part, has a zero-tolerance policyaround reprisals and retaliation against those who openly share their views about projects it funds, stating: “Any form of intimidation against people who comment on Bank projects, research, activities and their impact, goes against our core values of respecting the people we work for and acting with utmost integrity.” The Asian Development Bank’s policy similarly says that civil society participation in its projects “fundamentally supports good governance, citizenship and accountability of the state.”

Both development banks must know that funding a JETP in Vietnam while the government is punishing those who argued for this precise transition violates the spirit of their policies and undermines the ultimate effectiveness of their JETP investments.

Banks should not be supporting JETPs in any country where advocating for clean energy is treated as a crime under the guise of tax fraud. If Bach, Hoang and Khanh can be arrested for taking reasoned positions against coal-fired power plants or other projects that exacerbate climate change, then anybody is at risk of being arbitrarily imprisoned in Vietnam for supporting the goals of the JETP in the future. Each of these individuals worked within the system and was eager to help monitor and implement the JETP on behalf of impacted communities.

To achieve a truly just energy transition in Vietnam, financing of the JETP must be contingent upon the urgent release of Bach, Hoang, and the other environmental defenders serving harsh and unjust sentences. In addition, civil society must be able to safely and freely contribute to the work needed for Vietnam to meet its net-zero emission target by 2050 and the JETP commitments without retaliation or threat of imprisonment. The same should be true for all countries receiving billions of dollars to meet the Paris Agreement goals.

At this year’s Finance in Common Summit, I urge the participating banks that finance JETPs or any other type of climate-forward initiatives to do their due diligence and make sure their money will actually be used to fund truly just energy transitions.

To see the original post, follow this link: https://www.triplepundit.com/story/2023/climate-finance-climate-justice/782171

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Tags: accountability, Climate Justice, corporate social reponsibility, corporate social responsibility, CSR, ESG, green marketing, JETPs, responsible brands, sustainability, sustainable branding, sustainable brands, World Bank
Categories : Climate Change, corporate social responsibility, social responsibility, sustainable branding, sustainable brands

Looking for a US ‘climate haven’ away from heat and disaster risks? Good luck finding one

25 08 2023

Burlington, Vt., is often named as a ‘climate haven,’ but surrounding areas flooded during extreme storms in July 2023. Education Images/Universal Images Group via Getty Images

By Julie Arbit. Researcher at the Center for Social Solutions, University of Michigan; Brad Bottoms, Data Scientist at the Center for Social Solutions, University of Michigan and Earl Lewis, Director and Founder, Center for Social Solutions, Professor of History, Afroamerican and African Studies, and public policy, University of Michigan via The Conversation • Reposted: August 25, 2023

Southeast Michigan seemed like the perfect “climate haven.”

“My family has owned my home since the ‘60s. … Even when my dad was a kid and lived there, no floods, no floods, no floods, no floods. Until [2021],” one southeast Michigan resident told us. That June, a storm dumped more than 6 inches of rain on the region, overloading stormwater systems and flooding homes.

That sense of living through unexpected and unprecedented disasters resonates with more Americans each year, we have found in our research into the past, present and future of risk and resilience.

An analysis of federal disaster declarations for weather-related events puts more data behind the fears – the average number of disaster declarations has skyrocketed since 2000 to nearly twicethat of the preceding 20-year period.

A man and woman sit on a park bench with water up to the man's knees. The woman is sitting on the chair back. A car in the street is flooded up to the roof. — *A powerful storm system in 2023 flooded communities across Vermont and left large parts of the capital, Montpelier, underwater. John Tully for The Washington Post via Getty Images*

As people question how livable the world will be in a warming future, a narrative around climate migration and “climate havens” has emerged.

These “climate havens” are areas touted by researchers, public officials and city planners as natural refuges from extreme climate conditions. Some climate havens are already welcomingpeople escaping the effects of climate change elsewhere. Many have affordable housing and legacy infrastructure from their larger populations before the mid-20th century, when people began to leave as industries disappeared.

But they aren’t disaster-proof – or necessarily ready for the changing climate.

Six climate havens

Some of the most cited “havens” in research by national organizations and in news media are older cities in the Great Lakes region, upper Midwest and Northeast. They include Ann Arbor, Michigan; Duluth, Minnesota; Minneapolis; Buffalo, New York; Burlington, Vermont; and Madison, Wisconsin.

Yet each of these cities will likely have to contend with some of the greatest temperature increases in the country in the coming years. Warmer air also has a higher capacity to hold water vapor, causing more frequent, intense and longer duration storms.

These cities are already feeling the impacts of climate change. In 2023 alone, “haven” regions in Wisconsin, Vermont and Michigan suffered significant damage from powerful storms and flooding.

The previous winter was also catastrophic: Lake-effect snow fueled by moisture from the still-open water of Lake Erie dumped over 4 feet of snow on Buffalo, leaving nearly 50 people dead and thousands of households without power or heat. Duluth reached near-record snowfall and faced significant flooding as unseasonably high temperatures caused rapid snowmelt in April.

Two people shovel knee-deep snow off a roof. — A lake-effect snowstorm in November 2014 buried Buffalo, N.Y., under more than 5 feet of snow and caused hundreds of roofs to collapse. A similar storm hit in December 2022. Patrick McPartland/Anadolu Agency/Getty Images

Heavy rainfall and extreme winter storms can cause widespread damage to the energy grid and significant flooding, and heighten the risk of waterborne disease outbreaks. These effects are particularly notable in legacy Great Lakes cities with aging energy and water infrastructure.

Older infrastructure wasn’t built for this

Older cities tend to have older infrastructure that likely wasn’t built to withstand more extreme weather events. They are now scrambling to shore up their systems.

Many cities are investing in infrastructure upgrades, but these upgrades tend to be fragmented, are not permanent fixes and often lack long-term funding. Typically, they also are not broad enough to protect entire cities from the effects of climate change and can exacerbate existing vulnerabilities.

Workers in a rock cavern underground look up at a giant hole in the ceiling and pipe. — *Crews in Minneapolis work on a new stormwater tunnel underneath downtown. It’s designed to help protect part of the city, but not all of it. Alex Kormann/Star Tribune via Getty Images*

Electricity grids are extremely vulnerable to the mounting effects of severe thunderstorms and winter storms on power lines. Vermont and Michigan are ranked 45th and 46th among the states, respectively, in electricity reliability, which incorporates the frequency of outages and the time it takes utilities to restore power.

Stormwater systems in the Great Lakes region also regularly fail to keep pace with the heavy rainfall and rapid snowmelt caused by climate change. Stormwater systems are routinely designed in accordance with precipitation analyses from the National Oceanic and Atmospheric Administration called Atlas 14, which don’t account for climate change. A new version won’t be available until 2026 at the earliest.

At the confluence of these infrastructure challenges is more frequent and extensive urban flooding in and around haven cities. An analysis by the First Street Foundation, which incorporates future climate projections into precipitation modeling, reveals that five of these six haven cities face moderate or major flood risk.

Disaster declaration data shows that the counties housing these six cities have experienced an average of six declarations for severe storms and flooding since 2000, about one every 3.9 years, and these are on the rise.

An aerial photo shows the shoreline of Lake Mendota and the University of Wisconsin-Madison campus. — *Madison, Wis., has seen warmer summers and more precipitation in the past decade. Jeff Miller/UW-Madison, CC BY*

Intensified precipitation can further stress stormwater infrastructure, resulting in basement flooding, contamination of drinking water sources in cities with legacy sewage systems, and hazardous road and highway flooding. Transportation systemsare also contending with hotter temperatures and pavement not designed for extreme heat.

As these trends ramp up, cities everywhere will also have to pay attention to systemic inequalities in vulnerability that often fall along lines of race, wealth and mobility. Urban heat island effects, energy insecurity and heightened flood risk are just a few of the issues intensified by climate change that tend to hit poor residents harder.

What can cities do to prepare?

So, what is a haven city to do in the face of pressing climate changes and population influx?

Decision-makers can hope for the best, but must plan for the worst. That means working to reduce greenhouse gas emissions that are driving climate change, but also assessing the community’s physical infrastructure and social safety nets for vulnerabilities that become more likely in a warming climate.

Collaborating across sectors is also essential. For example, a community may rely on the same water resources for energy, drinking water and recreation. Climate change can affect all three. Working across sectors and including community input in planning for climate change can help highlight concerns early.

There are a number of innovative ways that cities can fund infrastructure projects, such as public-private partnerships and green banks that help support sustainability projects. DC Green Bank in Washington, D.C., for example, works with private companies to mobilize funding for natural stormwater management projects and energy efficiency.

Cities will have to remain vigilant about reducing emissions that contribute to climate change, and at the same time prepare for the climate risks creeping toward even the “climate havens” of the globe.

To see the original post, follow this link: https://theconversation.com/looking-for-a-us-climate-haven-away-from-heat-and-disaster-risks-good-luck-finding-one-211990

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Tags: Climate Change, Climate Havens, corporate social responsibility, ESG, sustainability, sustainable branding
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Consumers Already Care About Sustainability, and Signs of Economic Recovery Could Shift Preferences Further

25 08 2023

Image credit: Jacob Lund/Adobe Stock

By Andrew Kaminsky from Triple Pundit • Reposted: August 25, 2023

Indicators suggest that the worst of the economic strain is behind us. And while this doesn’t mean consumers will enjoy unabated shopping sprees any time soon, it may hint that more people will consider factors beyond the price tag when selecting a brand.

In tight economic times, consumer decision-making is generally limited to factors of price and quality — in other words, how do I get the most bang for my buck? When the grip on household spending loosens, though, and consumers find themselves with more disposable income, they have more room to consider other factors in their decision-making.

The U.S. Consumer Price Index for June 2023 saw the smallest monthly increase since 2021, signaling that inflation may have plateaued and offering consumers a bit of reprieve from the previous years’ bank account blitz.

In 2022, U.S. food prices had their largest annual increase since the 1980s, and per-capita disposable income fell by 6.6 percent. Now, food prices are beginning to stabilize, and the forecast for 2023 indicates that disposable income will start to see a small climb. Meanwhile, the global economy is also beginning to recover from disruptions caused by the COVID-19 pandemic.

If consumers find economic relief in the near future, they’ll enjoy more freedom to choose products and services based on preferences beyond simply finding the best price.

What does the data say about purchase drivers?

Data from Glow, a consumer data research company, shows that U.S. consumers consider price and quality as the most important factors when selecting goods or services in any industry. Given the state of the economy as of late, this isn’t much of a surprise.

Alongside price and quality, other purchase drivers include ease of use, customer support, availability and convenience, features and benefits, and sustainability. The final factor there, sustainability, is already top of mind for many consumers — and its relevance is quickly growing.

So, what really goes through consumers’ minds when they consider making a purchase? In industries where the price-quality combo is comparable between brands, consumers are more likely to look to the next set of drivers to aid in their final decision-making, said Mike Johnston, managing director of data products at Glow.

When we look at the Glow data for sustainability as a purchase driver across industries, it features as a top-three driver for 40 percent of U.S. consumers when it comes to energy providers, as well as 31 percent in the auto industry. The industry that sustainability ranked lowest in, convenience stores, still saw 20 percent of consumers ranking it as a top-three purchase driver.

“If there is a factor that is important to 1 in 5 consumers, or more, this is significant for any business as it can have a material impact on whether their brand is selected,” Johnston said.

Why is sustainability demand on the rise?

The whole spectrum of environmental, social and governance (ESG) issues is gaining traction with a large share of consumers. Granted, some consumers stand firmly in the “anti-ESG” camp, but a significant portion of shoppers are shifting their purchase drivers to prioritize sustainability.

Based on a recent study by NIQ, 69 percent of global consumers say that sustainability and ESG concerns have increased in importance to them over the last two years. It’s no surprise that the climate crisis has prompted many people to reevaluate their buying habits, but that’s only part of the reason why sustainability issues are playing a more prominent role.

“There are a mix of reasons for the growing importance of sustainability across consumers,” Johnston said. He points to the growing exposure in society of social issues, corporate scandals and the global climate crisis, as well as the changing demographics of the consumer base, as to why sustainability demand is on the rise.

“Sustainability and ESG issues are routinely seen to be more important with younger consumers,” Johnston said. These younger consumers, like millennials and Gen Z, are growing in importance quickly and increasingly occupying a larger share of the market.

‘Young’ consumers drive the sustainability surge

We can call them young, but there’s a good chunk of millennials who are closer to retirement than they are to high school, and they aren’t getting any younger. The dynamics of the market are changing as baby boomers and Gen Xers scale back their market influence.

For millennials, 61 percent say that sustainability and ESG issues have increased in importancefor them in the last 12 months. Across all categories, sustainability is a top-three purchase driver for 33 percent to 50 percent of these consumers. Aside from convenience stores, at least 10 percent of millennials ranked sustainability as the top purchase driver in all categories.

On the other side of the coin, baby boomers are least concerned about sustainability when making a purchase, according to Glow data.

Sustainability has to work in tandem with other purchase drivers

It’s growing in importance, but sustainability hasn’t yet reached the level of a standalone purchase driver in most cases. Depending on the product, price or quality has the ability to settle decisions single handedly.

It’s not uncommon to think or hear a shopper say, “I don’t care, just give me the cheapest one you got,” signaling price as the sole purchase driver. Or, likewise, “I don’t care what it costs, I just want the job done right,” meaning quality trumps everything else.

Consumers who care about sustainability are often willing to pay more and possibly even make a sacrifice on quality or convenience. But how much more will they pay, and how much else will they sacrifice? The answers to those questions vary depending on the product, industry, and consumer but are generally something like, “A little bit, but not too much.”

“There are many studies that show that consumers are willing to pay a premium for sustainable products,” Johnston said. In particular, Gen Z and millennials are more eager to pay those premiums.

Businesses that embrace the sustainability surge and can find that sweet spot between price, quality and sustainability will position themselves to attract a large share of the growing market for more sustainable products.

This article series is sponsored by Glow and produced by the TriplePundit editorial team. To see the original post, follow this link: https://www.triplepundit.com/story/2023/consumers-sustainability-purchasing-driver/782061

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Tags: accountability, Consumer preferences, corporate social reponsibility, corporate social responsibility, CSR, ESG, Glow Research, green marketing, NIQ, responsible brands, sustainability, sustainable branding, sustainable brands
Categories : corporate social responsibility, social responsibility, sustainability, sustainable branding, sustainable brands

Brands Would Do Well to Join the ‘Resale Revolution’

22 08 2023

Image: floorfound.com

Younger consumers are pushing resale into mainstream retail; and it’s changing how brands, platforms and other services that support commerce support and strategize around it. By Geoff Nudelman via Sustainable Brands • Reposted: August 22, 2023

We’re experiencing a “resale revolution;” and it’s fundamentally changing the way many of us in the US shop, according to the 2023 Reuse Report by global ecommerce marketplace Mercari.

According to the report, the US secondhand market is expected to reach $325 billion by 2031. What’s even more striking are the ways in which resale is slowly but surely becoming an integral part of the broader retail landscape; according to the report, Mercari has had more than 50 million downloads and gets 350,000 new listings every day in the US alone.

“Well over half of people surveyed for the report said buying secondhand is a lifestyle choice; and there’s a definite bias to younger consumers,” Neil Saunders, managing director ofGlobalData (which worked with Mercari to compile the report), told Sustainable Brands®.

From July 2022 – July 2023, the report notes almost 82 percent of US consumers purchased a secondhand item — 89 percent of millennials and 83 percent of Gen Z shopped resale. That shows the tilt towards resale is there with younger shoppers in ways that are erasing any prior, dated stigmas or stereotypes of buying used.

Falling right in line with the broader trend of climate-driven purchasing behaviors by younger consumers, the report stated that well above 20 percent of Millennial and Gen Z buyers placed “reducing environmental impact” as a factor in choosing to buy something secondhand. Those numbers also track on the opposite side — as younger consumers are also looking for more ways to extend the life of unused items through resale.

“We’ve seen a notable shift in the conversation around resale within the retail industry; and it’s clear that resale will play an important role in the wider industry’s move towards a more circular economy,” Visa chief sustainability officer Douglas Sabo told SB.

Embracing the powerful potential of resale

The shift is so notable that retail-adjacent players such as Visa are reshaping portions of their business as more shoppers turn to recommerce.

For Visa, this innovation comes in the form of initiatives such as its recently launched Recommerce Behavioral Insights Lab — which is facilitating several real-world experiments to better understand how to integrate circular practices into everyday retail.

According to Sabo, resale businesses are still working on that consumer connection — with only 23 percent of UK-based small businesses, for example, offering a resale option.

For a company such as eBay — arguably a resale pioneer long before it was ever a burgeoning trend — it requires a redefinition of what the platform could be for a new generation of buyers and sellers.

“Our platform has transformed into a hub for recommerce in many categories, driven by the sustainability-conscious preferences of younger generations like Gen Z,” says Renee Morin, the online auction company’s chief sustainability officer.

Despite the emergence of rival platforms such as Mercari, eBay remains a go-to, global marketplace for verified and authenticated goods through various self-run programs — especially with small appliances and electronics, which stand to have a greater positive environmental impact the longer they’re kept in service and out of the trash.

“Growth in eBay Refurbished GMV (gross merchandise volume) accelerated during Q1 2023, posting double-digit year-over-year growth with the addition of new categories — including computing and video game peripherals — as well as more brands and OEMs in existing categories,” Morin adds.

Apparel has the most potential and movement

One of the more interesting findings to come out of Mercari’s Reuse Report was the growth in male-identifying buyers exploring resale. 90 percent of male-identified consumers surveyed said they plan to purchase at least one secondhand item in the next year — and that’s supported by a 14.5 percent year-over-year growth in the “menswear” category on Mercari. Clearly, men’s-focused clothing is growing; and men are looking for more access to expensive items (sneakers, watches, etc) through verified resale channels. (GlobalData expects the “menswear” category to grow by 152 percent by 2031, according to the report. This is second only to “footwear,” which arguably could be partially incorporated into the “menswear” category, but remains separate for Mercari’s purposes.)

Over the last three years, apparel has easily been the largest growth category for recommerce — driven by streetwear, luxury and outdoor apparel brands alike looking to tap into new channels with current and new buyers. Whether by letting current customers buy and sell old pieces or offering a company’s own deadstock, flawed items or limited finds, apparel appears to be the most agile area for resale.

Recommerce is sure to continue evolving as consumers continue to explore it. Any entity with a stake in retail should adopt new messaging and offer more education to grow the segment, which is already making impact both in terms of the environment and the corporate bottom line: As Recurate asserted in its inaugural Resale Report, recommerce will be key for brands to unlock the next level of growth, engagement and consumer loyalty.

To see the original post, follow this link: https://sustainablebrands.com/read/defining-the-next-economy/mercari-brands-join-resale-revolution

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Tags: accountability, corporate social reponsibility, corporate social responsibility, CSR, ESG, Gen Z, Recommerce, Recurate, Resale Report, responsible brands, Reuse Report', Secondhand, sustainability, sustainable branding, sustainable brands
Categories : Climate Change, corporate social responsibility, responsible brands, social responsibility, sustainability

What does it take to be a Chief Sustainability Officer?

22 08 2023

Image: Odgers Berndtson

By Lucy Buchholz from Sustainability Magazine • Reposted: August 22, 2023

Sarah Gould discusses the crucial aspects needed for Chief Sustainability Officer

Shirley Parsons’ Sarah Gould discusses the crucial aspects needed for Chief Sustainability Officer to succeed in their businesses, to make lasting change

The pressure is on businesses, governments and other enterprises to deliver on commitments to hit decarbonisation targets. An organisation’s Chief Sustainability Officer or Head of Sustainability can lead that fight, but how do you get the right person for the job?

In an ever-changing economic landscape, the one thing that continues to grow is the demand for sustainability professionals, which makes it imperative to choose the right individual to take the lead in implementing vital policies.

Sustainability Magazine speaks exclusively to Sarah Gould, Principal Sustainability & ESG Consultant at Shirley Parsons, who is an expert in recruiting sustainability leaders and was recently placed as Head of Sustainability for a global logistics organisation.

What are the critical sustainability challenges for organisations?

The critical challenge for any organisation is recruiting a skilled, proactive and effective sustainability leader to drive its strategy forward. Without the right person at the helm, any sustainability drive can quickly end up on the rocks or going around in circles.

“We are seeing specialists in carbon, social values, waste, biodiversity, circular economy, energy and many other skills,” Sarah says. “Considering what an organisation wants to achieve from a senior hire helps set a clear direction and helps us effectively partner with our clients to make that match.”

Sarah continues to explain that it’s a collaboration to scope out the role and understand the purpose of the hire, as well as how it feeds into the goals and vision of the company. “It’s important to look at things from the candidate’s perspective when hiring,” she adds. “A candidate will not move just because it is a good name on their CV – they want to know what you will offer them, and they aren’t just talking about finances.”

How to attract and retain candidates

Retention and attraction are key challenges for a lot of organisations in a tight labour market. More individuals now want to know about an organisation’s mission – including their values, culture, diversity, social responsibility and career development opportunities, to name a few. That’s why it’s important to be prepared to answer their questions and provide a real sense of what it is like to work at your company.

“A candidate going for a Chief Sustainability Officer, Head of Sustainability or ESG position will want to know how much freedom they have to drive sustainability, who they report to – which gives them an idea of the influence they will have – and whether the organisation wants to make a positive change or if they are just greenwashing,” Sarah shares.

“It’s important to always be honest with candidates about your organisation’s commitment because if something is promised and not delivered, you will likely need to start hiring again quickly. Thinking about a candidate’s aspirations and how you can help them achieve their goals will prove beneficial.”

Assessing the suitability of candidates for sustainable careers

To identify critical personality traits and aspirations, Shirley Parsons uses MAPP (motivations, aspirations, personality and progression), a bespoke personality profiling system which is used both as part of the interview process and to assess teams ahead of future hires, determine what is missing and what is needed.

“Most suitable candidates have several options to choose from and will judge how efficient an organisation is from how you deal with them,” Sarah says. “Companies are losing candidates due to a lack of speed so consider how you can quicken your interview process. Make sure you have all the details sorted – development opportunities, training, benefits, location, and flexible working are all questions suitable candidates will ask.”

Sarah continues to explain that many organisations expect a Head of Sustainability to have several years of experience in their sector. However, sustainability is a growing skill area and doesn’t have the candidate pool of other technical industries, such as health and safety. Therefore, sector experience can be learned.

Finally, organisations should consider what can be gained by hiring someone outside of the sector. “You are hiring the Head of Sustainability for their expertise in sustainability, leadership, commercial awareness, and personality skills,” Sarah says, “and not for their 10 years of working in the sector.”

To see the original post, follow this link: https://sustainabilitymag.com/articles/what-does-it-take-to-be-a-chief-sustainability-officer

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Tags: accountability, Chief Sustainability Officer, corporate social reponsibility, corporate social responsibility, CSR, ESG, sustainability, sustainable branding, sustainable brands
Categories : Climate Change, corporate social responsibility, responsible brands, social responsibility, sustainability, sustainable branding, sustainable brands

Sustainability Drives Consumer Choice For Travelers

19 08 2023

Photo: Getty

By Richard Razgaitis, Forbes Councils Member via Forbes • Reposted: August 19, 2023

Travel contributes a disproportionate amount of greenhouse gas emissions into our atmosphere, and a powerful and growing movement has emerged within the travel and hospitality industry to show a commitment to environmentally friendly practices.

Consider that the 2,000-room New York Hilton Midtown now runs on a cogeneration plant that reduces its carbon footprint by over 30%, or that Royal Caribbean cruise ships use purification systems that remove 97% of sulfur dioxide emissions from their exhaust. Not satisfied with incremental steps, the Hotel Marcel in Connecticut is the country’s first net-zero energy hotel and generates all of its power needs through solar panels.

While it would be nice to believe that brands were making these choices for purely altruistic reasons, the reality is that these businesses are responding to consumer demand. For example, a survey commissioned by my company found that nearly 6 out of 10 travelers would prefer to stay at hotels that prioritized eco-friendly practices such as eliminating single-use plastics. That same study found that 30% of travelers would be willing to pay more to stay at hotels with green amenities, including available EV charging stations.

And while it’s true that this survey represents just one data point, it is consistent with the numbers we’ve seen in other research. A 2021 sustainability survey by Virtuoso found that 78% of luxury travelers prefer doing business with companies with strong sustainability policies, while a 2022 survey found that 75% of travelers would pay more for eco-friendly options if they knew how those funds were being used. And in the U.K., 61% of electric vehicle drivers consider EV charging stations a key factor when booking a hotel.

Whatever study you look at, one trend is abundantly clear: Demand for sustainable options and policies from the travel industry is not only strong but continuing to grow year after year.

It’s also worth noting that while many of these travel operators are making changes based on consumer preference, some are also responding to a growing number of laws meant to accelerate the trend. California and New York have both passed bills banning single-use toiletry bottles in hotels. To get ahead of this trend, mega-hotel chains such as Marriott and Hyatt enacted policies to remove all single-use toiletries from their properties.

Meanwhile, hotel chains and resorts as diverse as the Four Seasons, Hyatt and Disneyland have all launched initiatives to include water refill stations throughout their properties. In an interview with the New York Times (subscription required), Janet Redman, the climate and energy director for Green Peace, stated: “The travel world isn’t ignoring the severity of climate change. Many are even trying to find a way to slow it down so that tourism can keep thriving.”

How Hospitality Leaders Can Take Action

So what can hospitality leaders do to bring their businesses up to this new standard of sustainability that consumers expect? Here are a few options to consider.

• Decarbonize. Embracing energy efficiency and lowering your carbon footprint is appealing to guests and can also serve as a potential cost-savings where renewable energy sources, such as solar panels, are available and affordable.

• Reduce single-use plastics. Instead of offering guests single-use plastic water bottles, provide them with purified water through refill stations (full disclosure: my company offers these services, as do others.) Likewise, single-use plastic toiletries can be replaced with refillable bottles or recyclable packaging. Replacing plastic utensils with biodegradable bamboo ones can also give your guests a positive impression of your sustainability efforts.

• Reduce water usage. Installing water-efficient fixtures, such as flow regulators on showerheads or self-closing faucets that can shut off if inadvertently left on, can provide significant water savings. Even forgoing the use of pressure washers for cleaning can reduce the amount of water your property uses.

• Go car-free. Provide your guests with alternatives to driving their cars. Bikes and electric golf carts are excellent transportation in isolated areas. If you’re in an urban location with mass transit, provide guests with maps, schedules and guides to help them navigate your city’s trains and buses.

Remember that while many sustainability practices require an upfront investment, they can quickly pay for themselves by reducing waste and energy usage. In travel, good for the Earth is also good for business. If your hospitality brand isn’t prepared to adapt to this new reality, you could be increasingly out of step with your customers’ needs.

Rich ‘Raz’ Razgaitis co-founded FloWater in 2013 with a singular mission to put an end to single-use plastic water bottles. To see the original post, follow this link: https://www.forbes.com/sites/forbesbusinesscouncil/2023/08/18/sustainability-drives-consumer-choice-for-travelers/?sh=f90b27c273f5

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Tags: accountability, corporate social reponsibility, corporate social responsibility, CSR, ESG, green marketing, Green Peace, responsible brands, sustainability, sustainable branding, sustainable brands
Categories : Climate Change, corporate social responsibility, social responsibility, sustainability, sustainable branding, sustainable brands

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