By Kristen Sullivan from triple pundit.com • Reposted: March 27, 2023
Committing to meet environmental, social, and governance (ESG) objectives and targets is one thing. Acting on them is quite another. What are businesses doing to prepare for high-quality sustainability and ESG reporting, and what challenges are they uncovering along the way? To find out, Deloitte surveyed 300 public company executives to get a pulse on current trends and sentiment. Here are five takeaways from the front lines of real-world change.
Embed ESG in the corporate strategy
Nearly 3 in 5 executives (57 percent) say their company has established a cross-functional working group to drive strategic attention to ESG, an increase of 21 percent since last year. Another 42 percent say they’re in the process of establishing one.
A typical ESG working group includes executives from finance, accounting, risk, legal, sustainability, operations, supply chain and other functional areas. Increasingly, accountability for ESG performance can be most effective with an integrated governance structure that brings together all business functions. A philosophy of ownership across the business, paired with a strategic approach to governance, can establish ESG as a strategic priority highly aligned to corporate strategy.
Assign roles and responsibilities
Only 3 percent of executives say their companies are prepared for potential increased ESG regulatory or other disclosure requirements, but many are getting ready. For instance, 81 percent of companies have created new roles or responsibilities, and 89 percent say they’ve enhanced internal goal-setting and accountability mechanisms to promote readiness.
Who has management responsibility over ESG disclosure? Today, in many cases, it’s the chief financial officer (CFO) or chief sustainability officer (CSO), but many respondents indicate that increasingly there is shared responsibility for ESG reporting across the executive leadership team, human resources, supply chain and other functions.
Of those executives surveyed, board-level oversight has been predominantly assigned to the nominating and governance committee, but we are seeing a trend of expanded oversight responsibility across all committees, aligned to respective remit, to drive greater integration and oversight of ESG risks and opportunities.
Increase focus on assurance
Nearly all (96 percent) surveyed executives plan to seek assurance for the next ESG reporting cycle. To prepare for a reasonable level of assurance, 37 percent of companies are starting to apply the Committee of Sponsoring Organizations of the Treadway Commission (COSO)’s internal control guidelines, which can help companies measure, manage and validate ESG information with the same rigor typically applied to financial reporting.
Respondents shared that they use a range of different frameworks and standards for their disclosures. The most common is the Task Force for Climate-related Financial Disclosures (TCFD) (56 percent), closely followed by the Sustainability Accounting Standards Board (SASB) (55 percent). Around half of respondents also use standards from the Greenhouse Gas Protocol, International Integrated Reporting Council (IIRC), and Global Reporting Initiative (GRI).
For multinational firms, the rapid progress of the International Sustainability Standards Board (ISSB) signals optimism for convergence of a number of leading sustainability reporting standards and frameworks and the creation of a global baseline for sustainability reporting to help meet the information needs of the capital markets, as well as serve as the basis upon which other jurisdictions can build.
Develop a workable solution for data gaps
When it comes to sustainability reporting, access to quality ESG data now appears to be a bigger challenge than data availability. Still, a majority (61 percent) of respondents indicate their companies are prepared to disclose details about the greenhouse gas (GHG) emissions they directly produce, known as Scope 1. Even more (76 percent) say they’re ready to disclose details of their Scope 2 GHG emissions, or emissions generated by the electricity a company purchases, a substantial increase from the 47 percent who said so the previous year.
At the same time, Scope 3 emissions — which account for GHGs produced along a company’s entire value chain — appear to remain a challenge. Most respondents (86 percent) indicate they’ve run into challenges measuring them, and only 37 percent are prepared to disclose them in detail.
To close any gaps, companies may consider focusing on the Greenhouse Gas Protocol, which currently serves as the leading standard for measuring greenhouse gas emissions and provides for methodologies to promote consistency of measurement with due consideration to the level of measurement uncertainty and data availability.
Invest in technology for ESG reporting, disclosure and action
New technology is on the horizon for many companies as they embark on their ESG integration and disclosure journeys. Nearly all executives (99 percent) are somewhat likely or very likely to invest in new technology to prepare to meet stakeholder expectations and future regulatory requirements.
Technology solutions can assist in accelerating preparedness in moving from reporting in accordance with voluntary sustainability standards and frameworks to enhanced disclosure in accordance with authoritative ESG standards and new regulation.
No matter where a company is in their sustainability journey, strategic attention to ESG integration and disclosure today can help to deliver long term value to stakeholders into the future. By implementing the insights shared by public company executives, companies can gear up for ESG reporting and work to meet stakeholder expectations while also creating long-term value.
Kristen B. Sullivan is a partner with Deloitte & Touche LLP and leads Sustainability and ESG Services, working with clients to help address their sustainability and non-financial disclosure strategy needs.
By Robert Lempert, Professor of Policy Analysis, Pardee RAND Graduate School and Elisabeth Gilmore, Associate Professor of Climate Change, Technology and Policy, Carleton University via The Conversation * Reposted: March 21, 2023
The latest reports from the Intergovernmental Panel on Climate Change, including the synthesis report released March 20, 2023, discuss changes ahead, but they also describe how existing solutions can reduce greenhouse gas emissions and help people adjust to impacts of climate change that can’t be avoided.
The problem is that these solutions aren’t being deployed fast enough. In addition to pushback from industries, people’s fear of change has helped maintain the status quo.
To slow climate change and adapt to the damage already underway, the world will have to shift how it generates and uses energy, transports people and goods, designs buildings and grows food. That starts with embracing innovation and change.
Fear of change can lead to worsening change
From the industrial revolution to the rise of social media, societies have undergone fundamental changes in how people live and understand their place in the world.
Some transformations are widely regarded as bad, including many of those connected to climate change. For example, about half the world’s coral reef ecosystems have died because of increasing heat and acidity in the oceans. Island nations like Kiribati and coastal communities, including in Louisiana and Alaska, are losing land into rising seas.Residents of the Pacific island nation of Kiribati describe the changes they’re experiencing as sea level rises.
Other transformations have had both good and bad effects. The industrial revolution vastly raised standards of living for many people, but it spawned inequality, social disruption and environmental destruction.
People often resist transformation because their fear of losing what they have is more powerful than knowing they might gain something better. Wanting to retain things as they are – known as status quo bias – explains all sorts of individual decisions, from sticking with incumbent politicians to not enrolling in retirement or health plans even when the alternatives may be rationally better.
This effect may be even more pronounced for larger changes. In the past, delaying inevitable change has led to transformations that are unnecessarily harsh, such as the collapse of some 13th-century civilizations in what is now the U.S. Southwest. As more people experience the harms of climate change firsthand, they may begin to realize that transformation is inevitable and embrace new solutions.
A mix of good and bad
The IPCC reports make clear that the future inevitably involves more and larger climate-related transformations. The question is what the mix of good and bad will be in those transformations.
If countries allow greenhouse gas emissions to continue at a high rate and communities adapt only incrementally to the resulting climate change, the transformations will be mostly forced and mostly bad.
For example, a riverside town might raise its levees as spring flooding worsens. At some point, as the scale of flooding increases, such adaptation hits its limits. The levees necessary to hold back the water may become too expensive or so intrusive that they undermine any benefit of living near the river. The community may wither away.
Riverside communities often scramble to raise levees during floods, like this one in Louisiana. Photo: Scott Olson/Getty Images
The riverside community could also take a more deliberate and anticipatory approach to transformation. It might shift to higher ground, turn its riverfront into parkland while developing affordable housing for people who are displaced by the project, and collaborate with upstream communities to expand landscapes that capture floodwaters. Simultaneously, the community can shift to renewable energy and electrified transportation to help slow global warming.
Optimism resides in deliberate action
The IPCC reports include numerous examples that can help steer such positive transformation.
For example, renewable energy is now generally less expensive than fossil fuels, so a shift to clean energy can often save money. Communities can also be redesigned to better survive natural hazards through steps such as maintaining natural wildfire breaks and building homes to be less susceptible to burning.
Costs are falling for key forms of renewable energy and electric vehicle batteries. IPCC sixth assessment report
No one group can enact these changes alone. Everyone must be involved, including governments that can mandate and incentivize changes, businesses that often control decisions about greenhouse gas emissions, and citizens who can turn up the pressure on both.
The Stakeholder Model of Purpose. Graphic: CONSPIRACY OF LOVE
The Stakeholder Model Of Purpose: How Cause Marketing, CSR, Sustainability, DEI And ESG Can Operate Harmoniously In This New Age Of Purpose. By Afdhel Aziz, Contributor, Co-Founder, Conspiracy Of Love, And Good Is The New Cool via Forbes. Reposted: March 16, 2023
One of the biggest questions in the global movement of business as a force for good is how the different disciplines of CSR, ESG, sustainability, cause marketing, and diversity and inclusion all fit with the idea of Purpose.
I propose this simple model to show how they can all work in harmony.
Purpose is the Next Digital
A good analogy to start with comes from the quote ‘Purpose is the next Digital’ by Max Lenderman. In the same way that businesses had to transform themselves in every aspect (from the supply chains to their marketing) with the arrival of digital technology, the same evolution is happening with the advent of Purpose.
We see the emergence of the term ‘Purpose’ – the overarching umbrella term now increasingly being used to describe the idea of business as a force for good – in much the same way as we see the term ‘Digital.’ Just as ‘Digital’ now covers a myriad of different channels and technologies (from CRM, to supply chain management, to social media), so too does Purpose now encompass a wide range of different disciplines that preceded it (like CSR, ESG, DEI, etc).
Moving from Shareholder to Stakeholder Capitalism
The evolution of business we are seeing has also often been described as a move away from purely Shareholder-driven capitalism (where only the needs of investors were taken into account) towards a more Stakeholder-driven model (where the needs of multiple stakeholders including employees, consumers, investors, communities and the planet are also considered).
As such, mapping different manifestations of Purpose against these stakeholder groups provides a simple way to understand how they can all work in harmony, towards the higher order purpose.
Purpose at the core: The higher order reason for a company’s existence that inspires action to profitably solve the problems of the world. This exists as the core organizing principle of a truly Purpose-driven company, acting as a North Star around which to align all of the following.
Diversity, Equity and Inclusivity (DEI) is an Employee-focused manifestation of Purpose, ensuring that there are systems and processes in place in order to ensure a culture of belonging and opportunity, regardless of gender, ethnicity, sexuality, disability or neurodiversity. Inclusion should be baked into every aspect of the employee experience from recruitment to retention to Governance. If done right, it can not only lead to employee motivation and engagement but also innovation that leads to inclusive growth, through identifying new opportunities that less diverse cultures cannot envision.
Of course, DEI is only one manifestation of Purpose as it pertains to employees: there are so many more avenues (from inspiring personal purpose, to volunteering, giving, innovation and more generally, building it into the talent value proposition (TVP) and activating it at every stage from recruitment to onboarding to retention and career planning.
Cause marketing (or Purpose-driven marketing) is the legacy term for the manifestation of Purpose towards Consumers. This has now blossomed into many forms beyond its original basic models of the past.
This could take the form of initiatives that engage consumers via simply buying the product (eg TOM’s famous 1 for 1 model or Product (Red) which helped raise money for HIV/AIDS prevention.
At retail, this could manifest in a portion of revenue from products going to good causes (for instance, see Chips Ahoy raising money for the Boys and Girls Clubs of America).
Or indeed in digital or physical activations (for instance, Airbnb’s Open Homes initiative which invited hosts to donate their homes to refugees and victims of natural disasters).
Corporate Social Responsibility (or CSR) is the manifestation of Purpose towards the Communities a company serves – whether they be geographically contextual (like helping communities in the cities the company is based in) or issue focused (like The North Face funding non-profits that help make the outdoors more diverse via their Explore Fund grant).
This has always been a form of corporate philanthropy that a company has practiced in a more ‘defensive’ mode to deflect criticism of them not being a good corporate citizen. But in recent years, progressive companies have seen the benefit of treating CSR in a more enlightened way. By representing the voice of community to the company, and building deep relationships with non-profits and other partners, it can become a vital force helping drive authenticity, innovation and growth.
Sustainability is the manifestation of Purpose towards the Planet, pertaining to everything from how a company utilizes resources efficiently (like reducing their carbon footprint, stripping plastic out of their supply chain or managing waste) to how it obtains the resources (eg agricultural or mineral) with an ethical supply chain that is respectful not only to the Earth but the people who help them obtain it (eg farmers)
ESG (Environmental, Social, Governance) is the manifestation of all of the above in a codified way towards Investors and Shareholders, in a transparent and measurable way, in a way that allows for comparison between companies. Despite attempts to politicize and demonize it, when done correctly it can become a useful tool to help articulate Commitments the company is making in service of environmental and social goals (people and planet) in an accountable and tangible way.
The key to success in this new world of Purpose is orchestration. When all these disparate disciplines are re-aligned around a powerful and inspiring Purpose, the effect is so much stronger than if they were focused on a myriad of different objectives and issues. They become parts of an orchestra playing a harmonious single theme rather than instruments operating on a discordant solo basis.
How the adoption of new data-driven, omnichannel marketing models can improve CX. By Duncan Steels & Romain Fontaine from Spiceworks.com • Reposted: March 15, 2023
After more than two years of pandemic-induced rapid change and uncertainty, the dust seems to be settling and marketers are left with a “new normal” that looks like more uncertainty and change. Duncan Steels, vice president of customer transformation at Capgemini Invent, and Romain Fontaine, manager of customer transformation at frog, share why marketers need to build a more data-driven and omnichannel strategy to meet CX needs of customers today.
Consumers who raised their standards for customer experience during the pandemic seem to be raising them even higher now, and many companies are playing catch-up. In 2022, rankings fell for 19% of the brands in Forrester’s CX IndexOpens a new window , and Forrester noted that overall CX quality is “reversing gains made in 2021.”
The message should be clear: Consumers are moving forward faster than ever. Organizations, therefore, must let go of the marketing operating models that worked before the digital transformation to meet their needs now and in the sure-to-be-different future. Instead, companies need to adopt capabilities for a new data-driven, omnichannel, collaborative, and agile model. What does an organization need to do this?
Data-driven and real-time marketing strategies require fresh ways of thinking about customer relationships, new technologies for collecting and analyzing data, updated skills for leveraging those analyses. In addition to that, willingness to break down departmental silos to create a more agile, customer-centric organization. As CMOs are still responsible for brand building, they’re also increasingly accountable for technology to analyze and leverage data and insights and for business strategy aligned with brand purpose. Let’s examine the key elements required to enable this transformation and support CMOs in their expanding role.
Data And Insights
In a recent survey of marketing leaders, only 38% said they had customer segment and persona dataOpens a new window to work with. Because creative decisions, from product development to messaging, now hinge on data insights, data forms the foundation of the new marketing operating strategy. When collaborative, cross-disciplinary teams have the same 360-degree view of their customer, it’s easier for the group to develop a comprehensive, consistent customer experience across all touchpoints.
Organizations need to collect, standardize, and unify their data for analysis and insights to have the resources they need for effective decision-making. This requires a consistent data collection framework that eliminates silos and makes data available to all stakeholders across the organization.
Online-offline integration
With data-driven insights, organizations can develop content for online and offline touchpoints to speak to customer needs in those moments and spaces. This creates a more consistent experience across all channels, whether the customer engages with the brand on social media, in a physical store, or on a website.
An effective data collection framework ensures that data from and about customer engagements at all online and offline touchpoints flows into the organization’s customer data platform. That platform then performs analysis that keeps personas and individual customer profiles current. With a continuous stream of new omnichannel data complementing historical data, the platform’s AI can eventually learn which next steps to suggest at each stage of the customer journey, ensuring the right content appears at the right time for every customer.
New Communications And Media Strategy
As the number of channels and touchpoints proliferates and the marketing function becomes more customer-centric, marketers need an updated strategy for engagement that leverages data insights and omnichannel capabilities. For example, continuously updated customer profiles allow for quick changes to messaging as customer behavior and sentiment evolve.
Communication now also requires continuous two-way engagement with customers, up to and including the co-creation of products. Loyal customers and influencers may create brand-related content that businesses are learning to leverage as part of their overall communication strategy. By building communities around the brand, specific products, or consumer tribes (or targeted personas), organizations can amplify or invest in the reach of this user-generated content which further blurs the line between Earned and Paid media. For example, when a customer mentions a company on social media, the marketing team should be ready to engage and build on it. Wendy’s added more than 1 million new Twitter followers after their response to a customer’s question about free food. Ocean Spray seized the opportunity to connect with younger consumers after being included in a viral TikTok that became a popular trend.
Omnichannel Experience
Organizations must unify all customer touchpoints under their single, cross-disciplinary marketing team to support customer experience enhancement. For example, a team member responsible for the direct-to-consumer (D2C) channel might bring in D2C customer feedback that can improve CX in the organization’s social commerce and retail channels. At the same time, feedback from in-store shoppers about, say, the fit of a brand’s popular sweater or pair of jeans can help refine the buying experience for social, e-commerce, and D2C shoppers.
To keep up with the accelerated pace of digital transformation, customer expectations, and the skills that employees need, organizations must have an agile culture—including cross-disciplinary agile pods with the collective skills to pivot to high-ROI, CX-enhancing activities as they emerge and evolve. Organizations also need well-designed change management processes and practices to serve them now and over the long term. Ideally, these agility mindset and change management resources will help the organization adapt to changing expectations and technologies as they emerge instead of reacting.
CMOs also need to ensure their teams have the necessary blend of data, communication, product, and service skills to implement the new marketing operating model—and to work in new ways. The new marketing team must be made up of agile pods of cross-functional talents who can identify high-ROI initiatives and shift priorities quickly, adapt to the ever-changing consumer and competitor landscape, and test and learn to increase speed to market and support continuous improvement of products and activations. A 2021 CMO surveyOpens a new window found that just 44% of marketing leaders said their organization had the data science or AI skills they needed. Closing that gap and committing to this new way of working might require more proactive recruiting, more internal skills development, or both.
Like the other capabilities we’ve covered, effective change management for today’s marketing landscape requires collaboration to draw in information from all team members about what’s happening in their channel or area of expertise. And while some team members may be enthusiastic about contributing across channels and departments, it can be harder for others to adapt to a less linear, hierarchical way of working. Change management must include a strong, visible commitment from leadership, speak to the entire organization, and welcome feedback on changes to be effective.
Putting It All Together: New Functions For The CMO
The CMO is responsible for implementing these capabilities, making a data-driven mindset, agile philosophy, and customer-centric attitude key skills for CMOs to cultivate. So is the ability to listen effectively to questions and feedback from leadership, team members, and customers.
Adding or enhancing the marketing operating capabilities we’ve covered here may seem daunting. However, there’s real value in making those improvements from a marketing KPI standpoint and an agile mindset/change management perspective. By taking these steps now, marketing leaders can build the capacity to keep up with the pace of change and meet customers’ needs as they keep evolving.
By Kristen Philipkoski, Contributor from Forbes.com • Reposted: March 13, 2023
Eco-conscious fashion is on the rise, but one of the most environmentally damaging industry practices—overproduction—is still common.
Fashion brands routinely produce up to 40% more clothing than they think they’ll ever sell, according to severalreports. Clothing companies hope overzealous consumers will surprise them and buy more than forecasts predict. But, as frenzied as shoppers can get, they never buy all the goods manufactured.
As a result, many designers destroy extra merchandise to prevent it from winding up on the racks of off-price retailers and potentially devaluing the brand. Burberry was outed for burning $37.8 million in clothing in 2018. Chanel, Louis Vuitton, and Coach have also been caught in the act.
A new online marketplace called Otrium is providing a safe space for designers to sell their extra, previous-season merchandise at up to 70% off without diluting brand identity. With more than 400 brands already signed on, it’s the responsible shopper’s best kept secret—but it may not be that way for long.
“Every person I tell about this is like ‘how have I not heard of this before?’ This is the year we plan to make that no longer the case,” Otrium’s president and COO Zuhairah Scott Washington said during a recent press call.
Otrium was founded in 2015 by Milan Daniels and Max Klijnstra in Amsterdam and launched it’s American presence in 2021. Business in the states is quickly ramping up, with new brands consistently signing on—Closed and Rosie Assoulinebeing two of their most recent additions. In 2022, Otrium featured more than 5 million products, grew revenue by 1,000% year over year, and grew new members by 500%.
Its growth is thanks to its coveted designers and great prices, certainly, but also because of the unique business to business solutions it offers brands. The company prides itself on giving its partners access to tools that allow them to control their merchandizing, creating less of a warehouse feel and more of a luxury experience.
Brands can also track customer behavior and sales in real time.
“Partners are floored by the level of detail and data that they get about their businesses on our platform,” Washington said. “We really want them to see Otrium as their outlet and another channel for them… to help make better decisions about replenishing on our platform or even reproductions from their own core line of clothing.”
Otrium hosts both mass brands like Diane von Furstenburg and Tommy Hilfiger alongside higher-end (in the Designer Edit section) and cultish ones: Farm Rio is viral on Instagram, Reiss and Belstaff products are hard to find in the states, and Daily Paper is an edgy, inclusive favorite of the avant-fashion set, just to name a few examples.
This is not an entirely new concept—brands like Bluefly, Gilt, and RueLaLa pioneered the concept of selling past-season designer goods at lower prices—and all of those brands struggled to become profitable, eventually pursuing acquisitions in the early 2000s.
But Otrium hopes to differentiate its business by focusing on the sustainability angle and becoming a go-to for both brands and consumers who want to make more conscious consumption decisions.
Otrium also facilitates discovery across brands and hopes to guide customers to current-season, full-price products.
“We connect our consumers to a curated selection of brands they either already know and love, or brands they can discover with a great incentive to try them at a discount,” Mariah Celestine, Otrium’s U.S. General Manager said in an emailed comment. “This ease of discovery may also lead customers to pay full price for a brand’s regular collections, thereby preventing additional fashion waste and furthering our purpose.”
Celestine added that 60% of Otrium customers have tried a brand they’ve never heard of just because it’s on sale.
Fast Company recently named Otrium one of the most innovative companies of 2023 in the fashion and apparel category, “For convincing luxury brands to sell, rather than burn, last season’s merchandise.”
Industry experts say innovation is key to solving fashion’s pollution problem.
“Fashion has always been a hotbed for innovation, as well as a catalyst for social change; it’s time to leverage the industry’s creative energy to design better business models—ones that operate within the means of the planet rather than a take-make-waste approach,” wrote Angela Adams, a senior sustainability consultant at Quantis in 2021. “These could include rental, resale and repair schemes; pre-order models of production, print on demand and a departure from the traditional seasonal cycle; and a greater emphasis on product quality and durability, which is often compromised to fuel the industry’s unsustainable business model.”
Otrium’s tagline states that it wants to ensure “every piece of clothing that’s made is worn.” It’s a lofty goal, considering the literal mountains of unwanted clothing clogging African beaches, and considering Otrium does not partner with the fast fashion brands responsible for much of that detritus.
Otrium’s “code of conduct” requires partners commit to several environmental, social and government factors including fur-free garments, prohibiting human trafficking, child labor, slavery, discrimination in all forms as well as abiding by laws and regulations.
“Our aim is two-fold: to empower brands to improve their environmental impact and connect them to a base of conscious shoppers, and to help consumers build a timeless wardrobe of quality pieces that can be worn again and again, thus reducing the reliance on a ‘trend-driven’ consumption cycle,” Washington said. “This is not what fast fashion companies are known for.”
Shunning fast fashion just might be the way to go. A “total abandonment of the fast-fashion model, linked to a decline in overproduction and overconsumption, and a corresponding decrease in material,” is essential for reducing environmental damage, according to a 2020 paper published in Nature Reviews Earth & Environment.
Other experts say even small changes can make a big difference when it comes to the enormous problem or overproduction.
Washington hopes that by helping consumers see fashion as a creative expression instead of a cycle of trend-driven consumption, they can be a catalyst for real change in the fashion industry.
“Fashion is the largest art form in the world,” she said. “And we’re really excited about providing an opportunity that allows individuals to determine their own style—not just take what people say is the hottest today but really giving them a sustainable alternative to find items that speak to them and their own personal style.”
Greenwashing has become part of our modern-day lexicon. Now there’s a new term, ‘green hushing,’ for when a company is too quiet about its accomplishments. By Talib Visram from Fast Company • Reposted: March 12, 21023
Greenwashing—the term referring to businesses exaggerating their commitment to sustainability—is now firmly rooted in our modern-day lexicon. Baseless green claims draw public scrutiny and sometimes outrage, not to mention lawsuits, such as ones filed against companies including Dasani, Kroger, and Whole Foods.
Faced with the threats of tarnished reputations and legal trouble, some companies are instead choosing not to communicate their climate goals at all, leaving them unpublicized and meaning other companies can’t emulate their success. A new term has sprouted to signify the practice: green hushing.
WHAT IS GREEN HUSHING?
Green hushing refers to companies purposely keeping quiet about their sustainability goals, even if they are well-intentioned or plausible, for fear of being labeled greenwashers.
Xavier Font, professor of sustainability marketing at the University of Surrey in the U.K., defines it as: “the deliberate downplaying of your sustainability practices for fear that it will make your company look less competent, or have a negative consequence for you.”
HOW LONG HAS THIS TERM BEEN AROUND, AND HOW COMMON IS IT?
Since at least 2017. Font had seen the term only once before studying the practice more closely that year. And for something many of us may not have heard of, the practice is pretty prevalent. “Greenwashing is very visible,” Font says. “Green hushing, by definition, is not. [But] I think green hushing happens a lot more than we realize.”
It gained more widespread coverage after October 2022, when Swiss carbon finance consultancy South Pole highlighted the trend of green hushing in a report. It noted that nearly a quarter of 1,200 companies with a sustainability head are not publicizing achievements “beyond the bare minimum.” (Belgium had the highest rate, with 41% of its companies with science-based climate targets not publicizing them.) The report called the trend “concerning,” because publishing green actions has the power to inspire others, shift mindsets, and encourage collaborative approaches.
WHAT DOES IT LOOK LIKE IN PRACTICE?
In his study, Font, who focuses on the tourism industry, found that companies were not communicating environmental successes to consumers, especially odd in an industry where there are many chances to do so, such as at hotels or on websites.
The study concentrated on 31 small rural tourism businesses in England’s Peak District National Park. Font found that companies communicated only 30% of their sustainability actions.He noted that companies feared that by broadcasting their sustainability practices, customers would believe their vacation experiences would be worse.
One issue, he says, is that many companies aren’t sure when to announce achievements. A hotel he worked with that procured sustainable seafood sourcing didn’t know whether to announce it when launching, or when half of its hotels used it, or when all of them did. “If 50% of my supply chain is doing something,” he was asked, “is that a message that is credible for me to communicate to the world?”
Similarly, Font mentions pushback over supermarkets labeling bananas as fair trade, because customers then asked why more goods weren’t fair trade. “Many companies are choosing to not talk about it, simply for fear that the customers will see the glass as being half empty, not half full,” he says.
For larger companies, there are legal motivations to not report extensively. In recent years, lawsuits have been filed against Dasani for claiming its water bottles were 100% recyclable, and Kroger for claiming its sunscreen was “reef-friendly.” Cracking down on these false claims—like the ubiquitous “locally sourced wherever possible”—is a good thing, Font says. “That’s a bit like me saying, ‘I’m a good husband whenever possible,’” he says. “It has no value.”
Several states, most notably Florida, are divesting billions of dollars from BlackRock because it has developed strong ESG portfolios. “We see attacks being more irrational and so fierce,” says Peter Seele, a professor of corporate social responsibility and business ethics at Università della Svizzera Italiana in Switzerland. This has created another reason for companies to stay silent, or else also be on the receiving end of “anti-woke” tirades.
That polarization is troubling, Font says, and seeps into customers’ beliefs, which requires businesses to be culturally sensitive in the markets they operate in. “If I was a company in the U.S., serving the full range of customers, I would downplay the ‘S word,’” he says, referring to sustainability. They may want to spin a sustainable practice as one that is beneficial to customers in some other way.
“In the U.S., we’re just more litigious,” says Anant Sundaram, professor of business and climate change at Dartmouth University. “You say something in your 10K, or you put out some document, [and] immediately it becomes the basis for a lawsuit.” So American companies “tend to prefer to stay under the radar, and are a little gun-shy.”
WHAT COULD REDUCE GREEN HUSHING?
Climate reporting is now prevalent across developed nations. And the disclosures on climate risks, mitigation, and sustainable strategies that companies submit to government agencies are publicly accessible. But mostly, they are voluntary—allowing businesses to green hush.
Companies are keeping relatively quiet about most of their climate data. In the U.S., a report found that while 71% of S&P 500 companies report their greenhouse gas emissions, only 28% of smaller companies do so. And only 15% of S&P 500 companies disclose information on biodiversity and deforestation, and 12% on water risks.
But public reporting is changing soon. In the EU, climate disclosures will become mandatory in 2025, and for a wider swath of companies than previously. In the U.S., the Securities and Exchange Commission aims to roll out stricter regulations for 2024 (which will initially be for larger, publicly traded companies, with market caps of at least $700 million). This stricter enforcement may give businesses less of a choice to practice green hushing.
WHAT ARE THE CONSEQUENCES OF GREEN HUSHING?
It’s not ideal. As the Swiss report noted, companies discussing their climate actions can have positive knock-on effects and create change. But not if they’re silent.
Greenwashing crackdowns are valuable, but not if they are indiscriminate. Seele says there is a trend of attacking companies no matter how good their actions or intentions—which has brought about another phrase in the German media: “greenwashing truther,” for people who launch those kinds of accusations.
And in France, new greenwashing laws will place fines on companies for making misleading claims like being carbon neutral. While well-intended, such laws may serve to reduce greenwashing but heighten green hushing.
By Mandi McReynolds, Head of Global ESG, Workiva • Republished: March 1, 2023
A recent Workiva survey has revealed that a majority of senior decision makers surveyed have noted a positive correlation between their ESG practices and tangible business value.
While the idea of building corporate value through ESG isn’t new, the path to success in this area isn’t always clear.
During a panel discussion organised by the Financial Times in partnership with Workiva titled ‘The Future of ESG and Sustainability Reporting’, I argued that “it all comes down to values translating to value.” But how does this work in practice?
Where ESG and value creation come together
When considering the link between ESG and value creation, the incentives and pressures brought in by governments and external stakeholders may be the first things to come to mind.
As expectations and regulations rise, the immediate benefits of keeping up soon become apparent—both in the form of ‘carrots’ like ESG-linked executive compensation schemes, and ‘sticks’ such as potential penalties from regulators or limited access to capital financial institutions or customers..
Although these considerations are crucial, focusing exclusively on external, shorter-term motivators and detractors fails to dive deeper into the true purpose and complexity of ESG, thereby limiting the potential for greater growth and value creation over a much longer period of time. The relationship between ESG and financial success is multi-layered, requiring a more holistic view in order to be fully harnessed.
If done correctly, ESG strategies can help companies increase their value in a number of key areas, including:
Top-line growth
Lower costs
Alignment with governmental initiatives
Talent retention
Return on company investments
Stronger risk management practices
While these are all potential areas for value creation through sound ESG practices, not each of these will be equally important for every company. To stand out, business leaders need to determine specific areas of focus that make sense for their company.
‘Values’: a question of materiality
This brings us to the idea of ‘values’.
It’s worth unpacking what is meant in this context. In a politically and socially divided world, the term—which carries with it implications of a shared moral code—can feel loaded.
To some extent, it’s undeniable that ESG initiatives on a global scale follow a particular ethical framework (regarding, for instance, human rights or environmental sustainability). But while companies are obliged to follow certain standards in how they operate and report, they are not being asked to single-handedly address and solve all of the world’s problems—a common misinterpretation of ESG that can lead to disjointed initiatives, a ‘scattergun’ approach of trying to address everything at once, or even accusations of greenwashing.
The purpose of ESG is to enable company stakeholders to make sound, informed decisions that take into account the wider environmental and social context within which the company is operating. The idea of ‘values’ in this context therefore relates more closely to a shared company mission and questions of materiality.
Of course, being seen to make a positive impact on the world is becoming a highly material question for many organisations. Consumers, stakeholders and governments are expecting more from corporations, and these expectations need to be taken into account. However, standalone ‘feel good’ initiatives which are divorced from the bread and butter of the organisation are more likely to be ineffective, or even do real damage, than to provide tangible benefits.
To build real value for the business, the focus of an ESG strategy needs to be closely tied to the company’s daily activities, taking into account its particular circumstances alongside its existing strengths and resources. While a multinational food distributor, for instance, may wish to leverage new technologies for tracking the journey and carbon footprint of individual items of food, a consultancy might choose to focus their efforts on adopting innovative solutions for measuring the happiness and wellbeing of their staff.
Determine your purpose, then tell your story
The final—and perhaps most crucial—piece of the puzzle is the ability to communicate the information in a transparent, consistent and reliable manner, underpinned by verified and verifiable data.
While the CSRD comes into play in Europe, the SEC begins to introduce new disclosure requirements and mandatory ESG reporting looms on the horizon throughout the world, this level of rigour and transparency will soon become a baseline requirement. Having ready access to reliable data is essential, but organisations also need to understand why they’re in the data and what story they’re telling. By having established a purpose and area of focus underpinned by shared organisational values, leaders will be able to tell a compelling ESG story that has clear meaning and direction in a way that both showcases and increases the value of the organisation.
Lucy Usher of Oliver looks into research that suggests that few people really trust brands to follow through on their sustainability promises – and recommends how to bridge that gap.
No one likes making promises they can’t keep, least of all businesses in the public eye. Yet, right now, as the world heads deeper into financial instability, some fear that brands and businesses won’t be able to keep their sustainability promises.
Achieving net zero is, wrongly, seen as expensive, difficult and only for the fortunate few. But by slowing down on sustainable and net zero goals, businesses put themselves behind the transformation needed to succeed in a net zero world that continues to sprint ahead.
Promises matter now more than ever (just look at the state of politics). Delivering on the commitments we’ve made will not only deliver better brands and companies for this and future generations; it’ll also deliver trust, responsibility and accountability within boardrooms.
Here are the ways brands and businesses can become uncompromisable on their sustainability promises in 2023 (arguably one of the most challenging years for the climate on record).
The far-reaching financial benefits of being a trusted brand
As a measurable framework for advertising emissions emerges, brands will no longer be able to ignore the tension between growth targets and net zero investment.
Alongside reputational benefits, there are clear financial benefits to being a trusted sustainable brand. Brands with a strong sustainability DNA outperform competitors by 21%, in both profitability and environmental and social impact. Businesses’ bottom lines and the planet can both benefit from effective and economical sustainability plans that cater to all, not just ‘ethical consumers’.
Bridging the sustainability-trust gap
According to data from market research company GWI, 62% of consumers are only a little trusting that brands will stick to their environmental claims or pledges. 22% don’t trust brands at all. With a significant rise in greenwashing, it’s no surprise that shoppers are skeptical.
How can brands bridge this sustainability-trust gap? Here are four considerations.
1. Start
Sustainability isn’t a destination. It’s a journey. Brands must enter this journey with a spirit of inquiry and a can-do attitude.
Define what you want your business to stand for and what you want its sustainability purpose to be. Then, talk to customers. Use feedback to prioritize areas of the business where people would most like change, whether that’s packaging, manufacturing processes, distribution methods, or recycling. This will open the conversation in the long run.
2. Collaborate
With evolving technologies and breakthroughs happening all the time, brands don’t have to reinvent the wheel when it comes to adopting sustainable ways of working. But nor do we have time to all work in silos on the same problems. Instead, we must collaborate on reaching common goals rapidly.
There’s a wealth of existing credible sustainability frameworks to choose from that offer help with structural, operational, and cultural change. From the Conscious Advertising Network and Purpose Disruptors’ Advertised Emissions Framework to the Change The Brief Alliance, there are many resources to tap into.
3. Upskill
Education and training are key to embedding sustainability into the core values and practices of any business. It is important that sustainability considerations become business-as-usual: from creative ideas to operational deliverables. This means providing staff (at all levels) with training and aligning them to the brand’s commitments.
The opposite of this is a workforce ignorant of the rapidly changing landscape. They will be forced to focus on risk avoidance only (like adhering to the Green Claims Code), rather than seizing the opportunities awaiting upskilled businesses who are able to act on the ‘system upgrades’ that sustainable thinking brings.
Small changes add up. In terms of building trust with customers, an upskilled workforce is the biggest advocate for your brand.
4. Shout
Tell everyone about your commitments – but only if you mean it. It should stem from a genuine desire to be a better brand, not just to win brownie points.
When goals are communicated and measured, they stand a better chance of being delivered. As a key trust-builder for customers (with their growing cynicism around authentic commitments to change), brands need to share transparent, data-backed sustainability progress.
Be, do, tell
Putting it even more simply, brands need to apply the ‘be, do, tell’methodology. Brands tend to shout about sustainability pledges before putting the work in, which leads to distrust when targets aren’t met.
Instead, they should be sustainable, do the things that make them authentically sustainable businesses, then tell consumers about it. Even more simply: be better, do better, then tell customers how you’ve made better.
Sustainability investments aren’t just about reaching net zero targets. They’re heavily focused on improving overall performance. It’s up to everyone to drive change, and those at the top will benefit faster in the future by keeping their promises now.
Be, do, tell – and enjoy being one of the few that actually deliver.
This content is produced by The Drum Network, a paid-for membership club for CEOs and their agencies who want to share their expertise and grow their business. Find out more
From Submittable.com • Reposted: February 26, 2023
Once upon a time, businesses could focus on profitability above all else.
Not any more: modern companies are expected to care about making the world better. They’re expected to serve their communities, listen to their customers, take public stances (and action) on important issues, value and support employees, work for sustainability, and respond to current events.
CSR (corporate social responsibility) programs are one way businesses are meeting this mandate. And standout programs addressing social and environmental issues are most often the result of thoughtful CSR strategies.
Whether you’re new to CSR or looking to refine existing initiatives, understanding the ins and outs of CSR strategy is a prerequisite for creating successful programs with lasting impacts. The new “business as usual” demands smart social responsibility-are you ready to meet the challenge?
What is CSR strategy?
CSR strategy is the comprehensive plan companies and funders use to design, execute, and analyze their corporate social responsibility initiatives. It includes specific focus areas, program design, promotion and communication approaches, and evaluation procedures.
Most companies with thriving CSR initiatives use strategy to build and monitor their programs; a few of these companies also share their strategy publicly. Nestle is a great example, offering detailed insight into their brand’s approach (called “Creating Shared Value”) that includes long-term goals for serving individuals, families, communities, and the planet, as well as measurement procedures and transparent performance and reporting.
Some companies also release an annual corporate responsibility report which is another useful way for you to see what a CSR strategy can look like. Google’s 2020 Environment Report includes priorities, company mission, performance targets, and detailed analysis in five key focus areas.
Why have a CSR strategy?
In the world of CSR, it’s especially prudent to look before you leap.
This is because successful CSR initiatives are intricate, complex, and require demonstrable impact. They’re also public-facing (and potentially brand-damaging when done poorly). And they offer a host of business benefits you might miss out on by failing to plan.
A well-crafted CSR strategy can help you:
Keep everything organized
Great CSR initiatives involve lots of people, multiple goals, tons of data, and countless responsibilities. Your CSR strategy is an opportunity to get everything in order and prepare to stay on top of all the details.
Improve impacts
According to Deloitte’s third annual global survey of more than 2,000 C-suite executives at companies with societal impact goals, the presence of comprehensive strategy directly correlated with greater success (measured by innovation, growth, and employee acquisition).
Protect your brand reputation
Launching a corporate responsibility initiative without proper foresight is a big risk-that’s because your CSR program will be a public-facing endeavor with multiple stakeholders and partners who expect follow-through. Strategic planning can reduce the possibility that your company will gain a reputation for big talk and no action, which can ultimately harm your bottom line.
Take full advantage of CSR program benefits
CSR has a host of potential benefits for your company. A successful corporate responsibility initiative will benefit your community and serve your employees. It will also improve your brand image, attracting new talent and increasing customer loyalty. Ultimately, these outcomes can contribute to revenue and drive your company’s growth.
In order to reap the full business benefits of CSR, you’ll want a strategy that’s brand-aligned, well-researched, responsive, partnership-driven (at all levels), and constantly evolving in pursuit of positive impacts everyone can feel good about.
Best practices for creating a CSR Strategy
Understanding the role and value of a CSR strategy is an important first step.
Now, how do you create and develop a CSR strategy that gets results? There are seven key tactics for strategic planning that will help improve the outcomes of your business’s CSR activities.
1. Link to company values
Whereas CSR was once seen as a peripheral approach to boosting business performance and legitimacy, today’s best CSR initiatives are squarely brand-aligned and central to operational strategy.
Connecting CSR to business strategy is increasingly a corporate best practice, as evidenced by the 181 CEO’s from brands like Amazon, Citigroup, and Ford who signed Business Roundtable’s latest Statement of Purpose, indicating a commitment to “to lead their companies for the benefit of all stakeholders-customers, employees, suppliers, communities, and shareholders.”
What it looks like to align your CSR strategy with your brand, core competencies, and operational strategy, will be different for every company.
WarnerMedia’s Access Writers Program is a great example of a CSR initiative that clearly links back to company values: WarnerMedia is a media corporation focused on diverse entertainment whose latest program seeks to improve the access marginalized community members have to professional opportunities in television.
2. Get insights from your various stakeholders
You’ll want to develop a strategic plan for CSR inspired by what your customers, employees, and community members care about. You might also seek inspiration from what’s worked for other brands already. Here’s how:
Poll your customers
The creation of a CSR strategy is a great excuse to connect with your customer base. Build a short, easy to access poll to collect the following information:
Which environmental and social issues matter most to your customers?
Design your poll in alignment with your brand. For example, if you sell custom T-shirts, are customers most interested in your sustainability, supply chain, dedication to labor and human rights, or donations to kids in need? Focused questions will lead to more actionable results.
What do customers know about your current giving and initiatives?
If you have run programs in the past or currently engage in CSR, how well did you communicate about them? Are your initiatives known for success?
What associations do customers have with your brand?
This is a great opportunity to collect data about your business’s image, which you can try to influence in your new CSR strategy.
To help boost participation, consider offering an incentive to customers who complete your poll, such as a discount or entry into a drawing.
Collect employee feedback
Your CSR strategy doesn’t move without your employees. Start by determining your employees’ preferences and using that information to help build your overall strategy.
A survey is a great tool to collect this important information, combining multiple-choice and open-ended questions.
As an example, for your T-shirt company, you might have employees select between three brand-aligned volunteer opportunities followed by an opportunity for open feedback. This approach will you help you get the targeted data you need and also help employees feel heard and valued.
Assess community needs
What “community” looks like is unique for every business. Taking time to research and consider what your community needs is a great first step towards building the partnerships your CSR program will need to succeed.
Community Tool Box offers great suggestions for understanding community needs and resources, with methods that can be combined, depending on the extent of data you’re looking to connect.
3. Borrow great strategy
Your CSR strategy doesn’t have to reinvent the wheel. Spend time exploring where other businesses have succeeded in their sustainability, charitable giving, and employee engagement, for example. Don’t worry about being derivative: your strategy will necessarily be unique because your brand is unique and so are the people you care about and listen to.
One way to find brands doing the best CSR is via reports like “America’s Most Responsible Companies” from Newsweek and Statista-and congratulations to HP, Cisco, and Dell for top success in three focus areas: environment, social, and corporate governance.
Harvard Business School’s Baker Library offers a comprehensive list of social responsibility ratings and reports for companies. Of particular interest is Fortune’s “Change the World” list-you’ll find PayPal and Zoom in the top 10 for 2020.
Many companies have aligned their CSR activities in some way with the UN’s 17 Sustainable Development Goals (SDGs) that include issues like poverty, hunger, education, gender equality, and action around climate change. Chevron’s corporate sustainability program, for example, clearly lays out how the company is addressing every SDG, and Target includes an SDG index in their 2020 corporate social responsibility report.
4. Establish internal buy-in
You’ll need your team’s support, enthusiasm, and dedication to make your social responsibility program thrive. Engage employees early in the strategy process by being responsive and inclusive.
Respond to team values
Once you’ve assessed what your employees care about most and where they want the company to focus, put this data to work.
It probably won’t be possible to incorporate everyone’s feedback in your strategy, but at the very least, share your findings with the group. Your team will enjoy learning about what their colleagues value.
Use the information you’ve collected to identify top areas of interest and common suggestions for your CSR strategy. Try to actively pursue at least one employee-sourced initiative every quarter or fiscal year, with formal plans for addressing additional issues in the future.
Whether you establish an employee-led committee or include employee representatives in planning sessions, be sure employees are actively engaged and aligned with your CSR visions and values, missions and goals, and on-the-ground initiatives.
5. Build external partnerships
There’s already good work going on in the communities you’re looking to empower. Seek out the organizations and individuals doing this work early in your CSR strategy development process.
Many businesses are already reaping the value of partnership-driven CSR. This list from Donorbox offers examples of 14 major brands, including Adidas, IKEA, Apple, and BMW, that have partnered with community nonprofit organizations to better meet their CSR goals.
Community organizations will have the knowledge and experience to put your brand’s funding, sponsorship, or employee volunteerism, for example, to the best use. As philanthropic leader Edgar Viallanueva recently advised, “You shouldn’t feel that you need to recreate what’s already in place. Find organizations that have established relationships with grassroots communities and trust them to get the money to the right people. These bridge organizations often have the relationships and trust, but lack sufficient capital.”
Approach community partnerships with humility and take a learning stance-what do partner organizations need most and how can your business help? In addition to deep listening, be sure you’re establishing authentic relationships with partners. Sustainable and equitable partnerships (as opposed to shallow partnerships for the sake of PR) require that community members hold actual decision-making power, especially regarding campaigns that will directly affect them.
6. Be clear and transparent
Once you’ve tackled brand-alignment, stakeholders’ concerns (including customers, employees, and community members), and partner-driven strategy, it’s time to distill this wealth of information into a clear communication plan.
Get specific about goals and outcomes
Your CSR strategy should be as clear and specific as possible for a few reasons:
A clear strategy helps keep everyone on the same page
The more focused your goals are, the easier it will be to assess if you’ve met them
Clarity reflects positively on your brand’s commitment to corporate social responsibility, demonstrating rigor and care
Aim for precise language, numbered goals (each communicated in a single sentence if possible), key strategies and initiatives for meeting each goal, and measurement tactics for assessing progress towards each goal. Be sure to include your mission, vision, and partners.
Campbell’s Soup provides a great example of clarity and synthesis in its corporate responsibility strategy-especially this goals chart which lists target objectives alongside current progress displayed numerically and graphically.
Make a communications plan
Your CSR strategy shouldn’t be a secret. Think through how you’ll share this information internally and externally to foster enthusiasm, boost stakeholder engagement, and enhance accountability.
Your CSR strategy should include your plan for regularly and publicly discussing your CSR initiatives-via your website, social media, newsletters, email updates, reports, and even press releases.
Sharing high-level corporate strategy publicly can help generate interest in your CSR programs. It also indicates transparency and accountability-you’re sharing your plan because you intend to follow through and be accountable.
Use the same principles for sharing your strategy that you will to talk about your active and completed CSR campaigns, including these considerations adapted from the EMG group:
Objectives: What do you want to accomplish with your CSR communication plan?
Audience: Who will you communicate with?
Subjects and key messages: What will you tell your audience about?
Timescales: When will you communicate about CSR?
Channels: Where will you communicate with your audience?
Feedback: How will your audience be able to engage with you?
7. Learn, respond, and improve
In the world of CSR, there is always room for improvement, because CSR is about people and people are dynamic. Our needs change and so does the world we live in.
Accordingly, your CSR strategy won’t be complete without a plan for learning, adjustment, and growth-or as Global Giving puts it, the opportunity to “Listen, Act, Learn. Repeat.”
Plan for reporting and feedback
Data and feedback collection should be an essential part of your CSR strategy. Don’t wait for an initiative to finish to consider how you’ll assess outcomes-planning ahead will help ensure your whole strategy is aligned with what you hope to achieve and how you’ll demonstrate progress.
You also shouldn’t wait until the end of a campaign to begin your learning process. Establish a timeline for collecting information at regular intervals throughout your initiative.
There are plenty of ways to collect data and feedback, including interviews, surveys and questionnaires, observational data, focus groups, public forums, oral histories, or some combination of these. Plan to use the tools that make the most sense for your CSR initiative.
Whichever method you choose, be sure your strategy involves connecting with all relevant groups and stakeholders. What results did you achieve among community members and where could you improve? How did employees feel about your CSR program and what suggestions do they have going forward? Were customers interested in your campaign?
Your plan for measuring CSR performance should include how you’ll collect information and from whom, how you’ll assess the data, how you’ll share your findings, and how you’ll incorporate suggestions for improvement.
Be responsive to learning and to the moment
Your CSR strategy shouldn’t be iron-clad. It should evolve in response to new insight and data. Think of your strategy as a working, living document that can and should continue to improve, even mid-campaign, as necessary.
As an example, the events of 2020 forced businesses to reconsider their existing CSR programs. Many companies chose to pivot in response to COVID-19 and movements for racial justice. The publicity around these shifts, including critiques of hollow brand statements, underscored the importance for socially responsible companies of clearly linking action (via CSR) to rhetoric.
According to Mark Horowitz, CEO of Moving Worlds, global events have resulted in a tipping point for CSR, wherein business leaders are making bigger promises without changing operations to support their proposals. More than ever, he argues, companies must respond to the moment and take real action: “The next 10 months will define the CSR space for the next 10 years … CSR leaders within companies have the opportunity to right the position of corporations in society.”
While it’s vital to stay responsive, be wary of altering key goals and measurement tactics before you’ve had time to accurately assess them. Not only do you open your company up to critique for empty promises, but change doesn’t happen overnight and long-term objectives require longer-term measurement.
As Neil Buddy Shah, Managing Director at GiveWell, shared in a recent panel on impact data, you risk good ideas failing when organizations run an impact evaluation that is too rigorous too early.
Time for action: Bring your CSR strategy to life
A thoughtful CSR strategy requires time, thought, and teamwork to build. Make the best use of your efforts with tools that help transform your vision into action and results, faster.
Submittable’s CSR solution can connect your business to important causes while dramatically reducing the time it takes to oversee your corporate giving program. Manage corporate grants and scholarships, coordinate employee volunteers and giving programs, facilitate community sponsorships, and much more. We’d love to walk you through the platform-sign up for a free demo today.
By Laura Steele from submittable.com * Reposted: February 24, 2023
In the world of philanthropy, businesses and corporations are uniquely positioned to make a positive impact. They often have practice in uniting a team around a mission, using existing resources to increase capacity, and spreading the word about their work. For companies looking to leverage their strengths to better the community, corporate giving is a great tool to make change.
A corporate giving program is an initiative that allows businesses to invest in social good. There are a variety of options when it comes to program design, and each offers its own advantages. For inspiration, check out what other companies are doing.
No matter what kind of corporate philanthropy programs you choose, the time, money, and effort you invest will benefit not only the community at large, but will strengthen your organization.
The benefits of a corporate giving program giving
Become a trusted brand
These days consumers want to support businesses and corporations that invest in causes they care about. In fact, over 75% of consumers polled said they are more likely to buy from a company that supports environmental, social, or governance causes.
Kristin Kenney, Senior Associate at Carol Cone ON PURPOSE, explains, “Consumers are much more savvy today. They’re asking, how are employees treated? Where are products coming from? Who are products made by? And they’re really good at research.”
Corporate giving builds positivity around your brand and allows you to align your outreach with your community’s values. This provides your customers new, meaningful ways to engage with your business. It’ll also help you build a reputation as a company that does more than talk the talk. You show up.
Though in the past corporate giving has been viewed as an optional program, today it’s imperative that organizations get engaged with this work.
“If the social, health, and environmental crises of this past year are not enough to compel business leaders, then leaders need to hear this: You need a social impact strategy not just to do some good, but to remain relevant and competitive.” – Mark Horoszowski, CEO at MovingWorlds
Engage employees
A corporate giving initiative can also inspire your employees. Everyone wants to engage with a company that incorporates doing good into its mission—whether that means buying their products or being part of the team.
Giving back allows you to connect with your employees on a deeper level, helps them feel more fulfilled, and empowers them to make a difference. Plus it’s a great tool for recruiting. According to a recent survey, more than two-thirds of respondents said they’re more likely to apply for and accept a job with a socially responsible company.
Boost revenue
Using donations to create a loyal customer base and a strong company culture can help you boost revenue in the long run.
Corporate giving provides a great story for your marketing and recruitment team. It allows you to get your name out into the community in a new way and gives you the opportunity to build partnerships with other organizations. These connections can translate into more sales and they create a strong foundation for future growth.
Support sustainability
Beyond your bottom line, this form of corporate philanthropy supports long-term sustainability. Your business doesn’t exist on an island. It is part of a complex system that relies on the health and wellbeing of the planet, the people, and the social structures that connect them.
Investing in nonprofits that sustain the community and protect resources means you’re ensuring sustainability for your business and the world at large.
6 types of corporate giving programs
1. Community Grants
Awarding grants to nonprofits doing work in the community is a great way to leverage your resources and their expertise. Rather than picking a charity, you can set aside a designated amount of money to fund grants and invite organizations to apply.
If your team has a specific cause or population in mind, you can create targeted grant programs around an issue. Only organizations engaged in that specific work will be eligible to apply. For instance, you could create a grant dedicated to helping disadvantaged communities address climate change. In your grant application, you could ask applicants to explain how they are engaged in this work and what a grant will allow them to do.
Community grants allow your business to support the organizations already doing good work in the community. Forming relationships with these nonprofits helps you build trust with community members and shows that you’re willing to be humble in your approach to giving.
This model also fosters internal and external collaboration. By uniting around a common purpose, you can work together with the organizations you fund to make change. You can determine the program focus and help guide outcomes. Plus these connections can become long-term partnerships.
Meet community members where they are
As you build your grant program, be sure to center the people you’re aiming to support. Start by involving them in the conversations early. Get their input about what problems the community faces and what kind of solutions might do the most good. Remember: the people closest to a problem usually have the best insight about how to solve it.
Structure your grant application so that it is easy to access and complete. Nonprofits are busy. They don’t have time for a complicated application process. Choose a grant management software that streamlines the application experience and makes it easy on your internal team to review applications and communicate with grantees.
2. Charitable donations
A charitable donation allows your organization to give money or resources directly to a nonprofit. Structuring your giving this way allows your business to have an immediate impact.
This approach to corporate giving lets you minimize the time and effort your team puts into structuring and executing the program. All you have to do is choose a cause, identify charities that align with your values, and make a donation.
You can choose to write a check or you can make an in-kind donation. Giving goods or services is great if you have the means and capacity and the community has a need for what you can offer.
Consider the timing of your gift. Do you want to align with a global giving event such as Giving Tuesday? Or perhaps you want the gift to coincide with an event you’re planning or a product launch you’re preparing. Adding a charitable component to business programs can be a great way to drum up more interest in both initiatives.
Root your giving in trust
When you make a charitable donation, you can choose to designate your gift for specific programs or you can make the funding unrestricted. Unrestricted funding allows the nonprofit to decide how best to use the resources they receive. It offers more flexibility for the charities as they seek to cover the costs of running programs.
Philanthropist Mackenzie Scott has become known for making unrestricted donations to nonprofits. She explains the decision: “Because we believe that teams with experience on the front lines of challenges will know best how to put the money to good use, we encouraged them to spend it however they choose. Many reported that this trust significantly increased the impact of the gift.”
3. Matching gifts
Matching employee contributions to nonprofits gets the whole team engaged in giving. A matching program allows employees to choose the causes they want to support. An employee donates to a nonprofit and the companies will match or double the donation to create a bigger impact.
This method gets employees involved by letting them determine how the company’s charitable funds will be distributed. They can choose the causes they care about most or those they have a personal connection to. By putting the decision in the employees’ hands, you ensure that company donations align with employee values.
For example, Related Group, an urban developer based in South Florida, has created a matching gifts program for their employees. This helps them get folks involved and boosts the assistance provided to nonprofit organizations.
Make giving quick and easy
These days, most employees expect companies to have some form of corporate giving and matching. According to the latest report from Chief Executives for Corporate Purpose, 85% of companies surveyed offer year-round matching gifts programs.
Despite matching gift programs being incredibly popular, participation can be a struggle. It turns out, one of the main reasons employees don’t participate in corporate giving programs is because the process is too complex. This is where technology comes in. One study found that nearly half of employees said an easy-to-use, online technology platform was a top motivating factor to donate. Choose a corporate giving platform that makes it easy for employees to get excited about giving and helps them track their impact.
4. Volunteering
When it comes to corporate giving, it’s easy to overlook one of your greatest resources: people. Your company has taken time to assemble a great team. The talent and enthusiasm each employee brings to the table is unique. Channeling these skills to help local nonprofits pursue their missions is a great way to leverage your resources and get employees engaged.
As part of a volunteer program, your employees donate hours to a local nonprofit. This can entail simple, non-specialized work that the charity determines. For example, your company could donate volunteer hours to a local food bank. Employees would go during their normal working hours to help the food bank with tasks such as packing boxes or sorting food. You can also find opportunities that encourage employees to use their professional skills in their volunteer efforts.
No matter how you structure your volunteering, this kind of program helps keep employees invested. It provides opportunities for folks to connect with team members they don’t often get to work with directly, enhancing cohesion and connection across the company.
Other forms of corporate giving can help employees feel a sense of purpose, but volunteering allows them to get their hands dirty and to truly get engaged in the work. This has countless benefits for morale and engagement. Plus it can actually improve employee mental and physical health.
Let employees lead the way
Volunteering is most impactful when employees get to choose the causes they give their time to. Rather than making your volunteer program feel like a top-down initiative, put employees in the driver’s seat. Seek out employee feedback to help you organize volunteer opportunities. And empower employees to create volunteer events and invite their coworkers.
Taking this approach lets you build on the relationships that already exist within your company. It’s much more powerful to get an invite from someone on your team who’s excited about a cause rather than a company-wide email from HR.
5. Scholarships
Channeling your corporate giving into a scholarship program means you will be helping students further their education by providing money for tuition, books, or other living expenses.
For example A+ Federal Credit Union has a scholarship program for high school and college students in Central Texas. In 2021, they awarded a total of $100,000 to 50 students chosen based on academic achievements and community involvement. The scholarship money goes towards college tuition.
Funding scholarships is a valuable investment in the future. You’re helping students access education and easing the financial burden on them and their families. Of course, this can have an immediate impact on when and where they attend college, but it also has long-term effects on their job prospects, earning power, and financial stability.
Investing in education connects you with the up-and-coming generation. Showing up for them will help your brand stay relevant. These are your future customers and employees.
Recruit top talent
Some companies focus their scholarship programs on disciplines related to their businesses. This approach can create relationships with a strong pool of candidates for the future. It also gives you the ability to reach out and support a wide range of students and, in turn, help diversify the pool of talent you can draw from.
For example, Acxiom is a customer data management firm. Each year, they offer $5,000 scholarships to students from diverse backgrounds who are enrolled in a full-time post-secondary degree program such as computer science or computer information systems. Through this program, the company is supporting diversity across the sector and connecting with potential applicants.
6. Sponsorships
In a sponsorship, a business helps financially support a community group, event, or activity. Often in exchange for the support, the company is featured in promotional materials. By affiliating with a beloved event or group, a business can build goodwill in the community. This form of outreach gives you a chance to subtly market your brand while spotlighting important community activities.
For example the Alaska Humanities Forum sponsors events that bring Alaskans together and encourage civil discussion. They support events such as the Blueberry Arts Festival and in return their logo is featured on the event website.
Sponsorships often entail funding, but you can also provide support through in-kind donations. Perhaps the goods or services you offer would be useful to organizers.
Align sponsorships with your mission
As you look for an event to sponsor, try to find one that aligns with your business mission. Think about your target customers and what kind of interests they might have. Not only will this give you a natural point of connection with the folks you most want to reach, but it will also make it easier for you to show up in an authentic way.
A great way to approach your search is by starting with the events and causes that your employees are already involved in. Perhaps you can include their input as you create your giving plans.
Create your corporate giving program today
Creating an effective corporate giving program is not so different from launching other business initiatives. You want to ensure success by building from strategy, setting clear objectives, and prioritizing transparency.
As Alnoor Ebrahim, author of Measuring Social Change: Performance and Accountability in a Complex World explains, “In the social sector, we tend to think a lot about impact but don’t necessarily give enough attention to strategy—and the two are completely intertwined.”
As a corporate social responsibility platform, Submittable can help you create a program that works for your whole team. Whether you’re managing grant applications, accepting sponsorship requests, or promoting a scholarship, Submittable makes it easy to launch, manage, and measure your program.
By Emma Samson from Sustainablebrands.con • Reposted: February 24, 2023
Marketing is becoming inextricable from sustainability. Marketers must collaborate with other departments closely, gather accurate knowledge and work out how to share brand attributes in a humble and credible way.
You might think of the marketing department as advertisers. Or salespeople, capturing the attention of customers with branding and snazzy videos. Or maybe as analysts, monitoring data and adjusting their content to appeal to their target market. But the role of marketers is expanding fast. Selling stuff to customers is no longer the sole focus. Consumers, retailers and employees are all looking for brands that conduct themselves with a higher sense of social and environmental responsibility; so, today’s sustainable marketer must don many hats to satisfy internal and external stakeholders — turning their storytelling superpowers to influence behaviour and drive positive change.
Marketer as Corporate Sustainability Officer
The gap between sustainability and marketing is closing as brands rush to position themselves as ‘green’ – driven by customers increasingly aware of environmental risk. ‘Green’ sells, but the sustainable marketer needs to steer clear of accidental greenwashing as authorities clamp down on ambiguous communication and targets. At COP26, governments agreed to create a new UN greenwashing watchdog to name and shame companies that swerve their sustainability promises. And in the UK, the Advertising Standards Authorityrecently issued stricter guidelines regarding unqualified claims such as ‘eco-friendly’ or ‘plastic-free.’ Marketing buzzwords will no longer be tolerated without substantiation, and ignoring these guidelines could cost a brand both reputation and profit — up to €100,000 in France, where brands are fined for using misleading terminology such as ‘carbon neutral’ without reporting corroborating GHG emissions. Sustainable marketers need to understand the technical truths behind their products so they can communicate authentically and build trust.
Marketer as behavioural psychologist
The average customer spends only 6 seconds deciding what to buy at the shelf. By this point, however, the skilled marketer has directed them through the sales funnel, so the decision is already partially made. Only a last-minute discount or free gift might trigger a change of heart. All sustainability initiatives will require a significant element of behavioural change, and the marketer can use their understanding of motivation to shape that circular journey. For example, Willemijn Peeters of circular plastics consultancy Searious Business thinks the marketer will be crucial to the uptake and success of reusable packaging.
“We see from our clients that the main barriers to reuse are cost-effectiveness and behavioural change. No scheme will succeed without high uptake and return rates. We need to sift through the complex messaging behind reuse and distil it into simple prompts that customers can absorb — marketers know how to do this.”
Marketer as packaging designer
The Ellen Macarthur Foundation states that a circular economy begins with thoughtful design. Products and their packaging need to be designed with the impact of their entire lifecycle in mind. Packaging designers are under tremendous pressure to eliminate waste, choose low-impact materials and increase recyclability while still prioritising functionality. These measures often leave little room for shelf appeal — the final battleground for the marketer. Most marketers are incentivised to sell by volume; they need their packaging to catch the eye, imply quality and add value to the product within. What happens to it after use is often a secondary consideration, and their influence can make or break a sustainable innovation before its leaves the drawing board. According to recent IBM’s research, 41 percent of consumers would shop more sustainably if they understood more about the environmental and social impact. Product packaging is the last opportunity to speak to your customer and leave a positive impression of your brand. Make sure your final words are transparent and honest. Make sure they are ones that attract and continue to engage sustainability-focused consumers.
As sustainability becomes an inherent part of our global economy, marketers must take on a leadership role in creating and communicating their brands’ purposeful identity — building trust with their customers, suppliers, investors and employees. According to a survey by the UN Global Compact and Accenture, 81 percent of consumers now want businesses to take a stand on important social and environmental issues. However, the customer is not the only stakeholder looking for this commitment; both retailers and suppliers are getting choosier over what brands they stock or sell to. They want to be associated with brands that share their principles and help them meet their environmental and social goals. A recentstudy from digital studio PLAY found that two-thirds of Gen Z employees felt it was important for the company they work for to be committed to acting sustainably. In a pressurised job market, attracting and retaining employees is critical — meaning, brand image is as essential to HR as it is to sales.
Marketing in the future will become inextricable from sustainability. Marketers must collaborate with other departments closely, gather accurate knowledge and work out how to share this in a humble and credible way. The number of hats on the marketer’s hat rack is increasing, but the most important is still the thinking cap.
One in three consumers prefer shopping with the planet in mind, even if it means paying a little more. By Alyssa Khan, Editorial Intern • Inc.com – Posted: February 16, 2023
Knowing your customer is one of the first rules for running a successful business, and customers today care about sustainability.
One in three consumers prefer shopping with the planet in mind, even if it means paying a little more, according to a SurveyMonkey study. Sales of products marketed as sustainable also grew 2.7x faster than those that didn’t, according to a study from New York University’s Stern Center for Sustainable Business. While making your company more environmentally friendly will likely require an upfront investment, it could pay dividends in the long term, and you don’t have to reinvent your entire business plan.
Here are three sustainability tips for every business owner in 2023.
Ericka Rodriguez founded her vegan lipstick brand, Axiology, in 2014 in New York City. Though her lipsticks were originally packaged in recyclable aluminum, Rodriguez learned that their plastic components meant they often couldn’t be recycled. So she and her team of four employees began testing ways to make their packaging more environmentally friendly. They settled on a compostable, food-grade paper free of animal-sourced waxes and glue that wraps around the lipstick like paper on a crayon. While it took a year and a half and thousands of dollars to make the switch, the final production cost is now less than that of the aluminum packaging, enabling Rodriguez to lower the retail price of her flagship lipstick from $28 to $24. The new packaging also helps differentiate her brand from the competition.
1. Rethink your packaging.
Ericka Rodriguez founded her vegan lipstick brand, Axiology, in 2014 in New York City. Though her lipsticks were originally packaged in recyclable aluminum, Rodriguez learned that their plastic components meant they often couldn’t be recycled. So she and her team of four employees began testing ways to make their packaging more environmentally friendly. They settled on a compostable, food-grade paper free of animal-sourced waxes and glue that wraps around the lipstick like paper on a crayon. While it took a year and a half and thousands of dollars to make the switch, the final production cost is now less than that of the aluminum packaging, enabling Rodriguez to lower the retail price of her flagship lipstick from $28 to $24. The new packaging also helps differentiate her brand from the competition.
“I don’t think the world needs another plastic packaging lipstick brand,” Rodriguez says. “There are already so many.”
2. Consider responsible sourcing.
Nadya Okamoto and Nick Jain founded the direct-to-consumer period care brand August in 2021. The main material for their products, cotton, is the most profitable nonfood crop in the world, but farming with pesticides, fertilizers, and other chemicals can contaminate waterways and soil, creating havoc in ecosystems. So, August’s founders were committed from the start to use only sustainably farmed, organic cotton versus the popular industry alternative viscose, a type of rayon that is less sustainable and the subject of various health concerns. That means the cotton crops used for their products create fewer greenhouse gas emissions and don’t contaminate surrounding ecosystems. The average price of a 28-pack of regular tampons retails for between $10 and $11, while a 24-pack of August’s tampons is priced between $14 and $15. For Okamoto, the difference in price is worth it for her customers and her business.
“Supply chains are being challenged to be as ethical as possible,” says Okamoto. “Our deepened commitment to making sure that we stand by those values has helped us cultivate a beautiful community.”
3. Beware of greenwashing.
It’s no secret that companies overstate how environmentally friendly their products are. “For me, greenwashing is overclaiming in a significant way or lying about what you’re doing,” says Tensie Whelan, director of the Center for Sustainable Business at New York University. “Some of it is a lack of competence. This is a whole new area. We’re all learning all the time.”
While misleading claims about products being environmentally friendly are common, companies that exaggerate details about sustainability risk significant reputational damage. Greenwashing has been at the center of controversy over the past five years as companies like Tide, Coca-Cola, and Banana Boat sunscreens have faced inquiries and even lawsuits challenging various claims related to sustainability.
By Ted Dhillon, Forbes Councils Member from fore’s.com • February 15, 2023
ESG (environmental, social and governance) is often viewed as a way for the financial markets to measure the social and environmental performance of a business. But it’s a lot more than that. Increasingly, prospective employees are using it as a measuring stick to decide where their next job will be.
ESG represents a set of principles that many prospective employees hold all over the world—the idea that businesses need to operate with sustainability at the forefront, doing as little harm to the environment as possible and promoting social responsibility and community building inside and outside the enterprise.
Generation-Z—the group many companies will draw their fresh talent from in the next two decades—already believes in these principles more than previous generations do.
My company draws talent from all corners, but especially from groups that have either studied or worked in environmental science. That’s because their values already align with our mission. It’s a natural fit for someone who wants to contribute to a climate change solution to gravitate toward companies that empower them to do just that.
But the Great Resignation that started with the pandemic is still taking a toll. Even companies outside the ESG industry that want to recruit and retain top talent don’t have the luxury of ignoring the class of climate change warriors. Enterprise leadership must think carefully about how they can align their values and practices with these prospects. It’s not enough to say you are pro-environment, diverse and inclusive—you have to show it and “pitch it” in the interview process.
Communicate an authentic message.
No one comes through the door supporting an environmental mission for exactly the same reasons, so messaging has to be strategic and, most importantly, can’t be seen as greenwashing. Greenwashing, in this context, means putting forward misleading claims to prospective employees to boost a company’s environmental credentials.
So how do you convince a top recruit that your company takes sustainability seriously? In short, communicate, demonstrate and engage:
1. You can communicate a pledge to sustainability through a clear impact statement on every job posting. It should answer some key questions:
What impact can an individual have at this particular company? How does the individual job role contribute to the positive impact the company wants to have on the environment?
If an employee is choosing between you and another company, the “50-50” decision could come down to how well you answer those questions.
2. You can demonstrate sustainable practices by proactively sharing a fact sheet or webpage with every job candidate, whether they ask for it or not. Using social media channels to amplify those messages especially works well to reach out to ultra-connected Gen-Zers. This signals that ESG concerns are not an afterthought but a priority.
In the interview process, make environmentally friendly benefits—even if they are as small as reimbursements for taking greener modes of transportation to work—a part of the standard benefits run-through.
3. Keep current employees engaged in sustainable practice discussions by initiating employee-led committees that have the power to push new sustainability policies. Mention to prospectives (or better yet, let other employees mention it in conversation) that there are internal structures in place to give them a voice on sustainable practices. Prospects will quickly see that there is no greenwashing going on in that shop.
Consider tracking and reporting.
There’s a panoply of green certifications that companies use for bragging rights (the LEED standard for green buildings might be the best known). But ESG rating systems, those firms that take reported data and create rankings of companies, can be confusing because they all use different methodologies that may not be fully transparent.
There are better ways to demonstrate true ESG impact. Job candidates are looking less for a list of green badges and more for evidence that the company can track its own impacts through clear and transparent ESG reporting. If your company already tracks impacts, which can range from emissions to water usage to social impacts, then package the most recent year (or five years) reporting in an easy-to-understand format for anyone interested in working for the company.
If you are not yet tracking impacts, developing a plan to do so and being transparent about it to prospective employees at least makes a definitive statement about where the company is headed.
Gen-Z Swedish activist Greta Thunberg is famous for calling out older generations who are fumbling the ball on climate change today. “My message is that we’ll be watching you,” she told a U.N. climate summit audience in 2019. She meant that there would be accountability for the world’s most existential problem, and decades from now, business leaders may be judged by what they do today to be part of the solution.
Forward-looking companies will strive to track ESG impacts, form action plans that meet specific emissions (and other) goals and then ask young climate change warriors to jump on board.
Ted Dhillon is the CEO and cofounder of FigBytes, an ESG insight platform.
A new survey asked shoppers why they aren’t buying from socially responsible brands anymore. The biggest problems: They can’t name any and think they’re too expensive. By Heath Shacklford from Fast Company • Reposted: February 9, 2023
The number of Americans who believe it is important to support socially responsible brands has risen in the past decade. The percentage of consumers who plan to increase their spending with such brands in the year ahead has never been higher. Yet, when push comes to shove, fewer and fewer consumers report purchasing products and services from socially responsible companies.
These are some of the key takeaways from the 10th annual Conscious Consumer Spending Index, a benchmarking study my agency runs that gauges momentum for conscious consumerism, charitable giving and earth-friendly practices. The Index score is calculated by evaluating the importance consumers place on purchasing from socially responsible companies, actions taken to support such products and services, and future intent to increase the amount they spend with responsible organizations.
With inflation lingering near 40-year highs and one quarter of Americans reporting a decrease in their household income in the past year, more individuals are finding it challenging to support socially responsible brands, which typically cost more than traditional products and services. In fact, almost half of respondents (46%) said the cost of socially responsible goods and services prevented them from buying more from conscious companies.
This decrease in purchasing power resulted in only 57% of respondents reporting they purchased goods for socially responsible brands in 2022, down from 64% in 2021 and 62% from the inaugural index results in 2013.
While the current economic situation is making it harder for consumers to support socially responsible brands, there are also more systemic challenges to the “do good” movement. Specifically, here are three opportunities for improvement as we consider the path forward for conscious consumerism.
HOLDING OUT FOR A HERO
Way back in 2015, TOMS was in the media spotlight as an icon for what do good business was all about. It was a hero brand, a poster child for the movement. As part of the Index that year, we began asking consumers to name one company or organization that is socially responsible. Based on unaided recall, TOMS topped the list of responses, and repeated that performance the following year.
Fast forward to 2022. For the fourth year in a row, Amazon is the most cited brand when consumers are asked this question. Meanwhile, TOMS no longer makes the list at all. It’s a classic case of out of sight, out of mind. There are only so many experiences the average consumer can have with TOMS as a brand, even if they are rabid fans. Meanwhile, they engage with companies like Amazon and Walmart, number two on this year’s list, on a daily or weekly basis.
The TOMS one-for-one business model is no longer a novelty and no longer the focus of frequent media attention. As a result, we have lost our hero brand for socially-responsible business. We have many strong brands who are well-known for doing good: Patagonia and Ben & Jerry’s are among the examples. But no brand has captured our collective attention and imagination like TOMS did during its peak as a media darling.
Ultimately, this movement needs a hero. A brand that emerges as a leader and carries the torch for socially-responsible business practices. A brand that is large enough to demand consistent attention from the news media and the average consumer. A brand who can serve as an example and as a powerful advocate for business as a force for good.
From familywealthreport.com • Reposted: February 9, 2023
Nuveen, the investment manager of TIAA, has recently released its 7th Responsible Investing Survey, tracking US investors’ attitudes and behaviors regarding responsible investing.
A new survey by Nuveen shows that three-quarters of US investors believe that ESG factors should always be part of the investing process.
According to the survey, more than 80 per cent of US investors also think that companies need to be more open in communicating the risks and opportunities that shape their standing as “responsible investments.”
Seventy-three per cent said they are more likely to invest in a company that shares its plans with investors for effectively managing those factors.
Investors’ demand for more ESG-related information from companies is paired with strong agreement that ESG investing now represents a core portfolio approach, the firm continued.
Nearly eight out of 10 respondents see responsible investing as a framework that incorporates material factors not typically accounted for in traditional financial analysis. Four in five agree that investors should view responsible investing as a long-term strategy – and 76 per cent say that factoring in RI risks and opportunities should always be part of the investment process.
Younger investors are particularly in tune with the fundamental value of responsible investing: 92 per cent of Gen Z and Millennial investors agree that related risks and opportunities always belong in the investment process, compared with just 68 per cent of Gen X’ers and Baby Boomers, the firm said.
The survey, which was conducted by The Harris Poll on behalf of Nuveen, covered 1,003 adults aged 21 and over with at least $100,000 in investible assets between July and August 2022. It includes 573 investors who said they currently own funds managed according to principles of responsible investing – also known as ESG investing.
“Although many investors are interested in RI’s positive impact on society, in their minds the process of managing key ESG factors should also focus squarely on mitigating critical impediments to company performance,” said Amy O’Brien, global head of responsible investing.
According to the firm, about seven in 10 investors agree that having RI options in their retirement plan makes them feel good about working for their employer. The sentiment is even stronger among Gen Z and Millennial investors: 95 per cent would feel good, compared with just 56 per cent of Gen X’ers and Baby Boomers.
“Responsible investing options are becoming a ‘must-have’ for corporate retirement plans, driven by strong participant interest in aligning investments with their values while tracking toward long-term financial goals,” said O’Brien.
“Retirement plan sponsors who introduce RI options and offer education about the portfolio advantages clearly have an opportunity to build even greater appreciation and loyalty especially among employees who are early on in their careers,” she continued.
The dairy alternative brand Oatly is using its newly reformulated oat milk yogurt line to introduce U.S. consumers to its climate footprint label — which the company has featured on products in European markets since 2021. Seeing more carbon footprint labels on food products could signal an important shift toward more informed and responsible consumption, as Americans report a willingness to make changes for the sake of the planet.
Such labeling could be a boon for producers with small carbon footprints while perhaps encouraging carbon-heavy producers in sectors like such as beef to find ways to lighten the load. But widespread use and standardization across the food industry will be necessary for it to be effective.
“Transforming the food industry is necessary to meet the current climate challenge, and we believe providing consumers with information to understand the impact of their food choices is one way we as a company can contribute to that effort,” Julie Kunen, director of sustainability for Oatly North America, said in a statement.
There’s good reason to believe that a significant number of consumers will adjust their choices accordingly. A joint study by Johns Hopkins Bloomberg School of Public Health, the University of Michigan and Harvard University found that climate impact labels on food menus did influence respondents to choose a chicken, fish or vegetarian meal over a beef one. Warning labels were more effective in deterring people from choosing beef than low-impact labels were at encouraging people to eat an alternative. While it was a small study with a limited scope, the research does point to the potential for carbon footprint labels to inform people’s diets.
The global food system accounts for between a quarter and a third of annual greenhouse gas emissions, depending on methodology, leaving plenty of room for improvement — and impact.
For its part, Oatly compares its climate footprint labeling — which will list the product’s climate impact from “grower to grocer” in kilograms of carbon dioxide equivalent (CO2e) — to the nutritional information that is already required on packaging. The CO2e measurements include not just carbon emissions, but also other greenhouse gases such as nitrous oxide and methane which have been converted into interchangeable units in order to incorporate them in the total footprint.
However, the brand is clear that carbon footprint labels are neither required nor standardized, and they’re of little recourse to consumers until they become so. Thus the brand is hoping to inspire other producers in the industry to follow suit while encouraging consumers to eat more plant-based and low-carbon alternatives.
“The products we make at Oatly aim to make it easy for people to make the switch to non-dairy alternatives, and great taste is one of the most essential components of driving that conversion,” Leah Hoxie, the brand’s senior vice president of innovation in North America, explained further in a statement.
Taste has been a barrier for the plant-based movement, with major strides made in the latest generation of plant-based meats and dairy products that have hit the market. Indeed, more people are willing to make the leap to eating lower on the food chain as the taste, texture and price of alternatives become more palatable.
Fostering a sense of responsibility for the climate in their business practices and labeling should work in Oatly’s favor, especially among Gen Z.
Consumers have long been burdened with a status quo that makes doing the right thing more difficult, so it’s no wonder we have fallen into a food system that pollutes and destroys ecosystems at a rate far higher than it should. But by providing climate impact information on product packaging, brands can gain consumer trust and demonstrate that they also trust the consumer to make the right choice.
As the balance of information shifts and becomes more equitable, consumers could be empowered not just to lower their own gastronomic impact on the climate, but to expect better from the food industry as well. Naturally this would require a more intricate labeling system — perhaps including warnings on high-impact items — but Oatly is off to a promising start.
Fellow plant-based brand Quorn also includes carbon footprint labels on product packaging, and CPG giant Unilever has committed to roll such labeling out to its entire product portfolio. Other sectors, from beauty to tech, are also looking toward climate labels in a trend that seems to be just heating up.
By Tina Casey from triple pundit.com • Reposted: February 7, 2023
Crusaders against socially responsible investing have been holding forth about the evils of “woke capitalism” in recent years. For all the red-hot rhetoric, though, leading U.S. businesses continue to promote clean power. The latest effort involves GM, Ford, and other leading stakeholders in an effort to grow the market for virtual power plants.
What is a virtual power plant?
Although the idea may seem somewhat exotic, a virtual power plant is simply a networked grid system that enables individual electricity producers to interact with each other and with individual users. The overall aim is to avoid the cost of building new centralized power plants — and especially to avoid building new fossil power plants — while improving reliability and resiliency.
This network-based approach to grid planning is made possible by new smart grid and smart metering technology, along with the proliferation of rooftop solar and other small-scale renewable energy systems. It is a sharp contrast with the traditional strategy of building additional centralized power plants to get communities through periods of peak demand.
In addition, virtual power plants provide electricity users with new opportunities to save or even make money, depending on the incentives offered by their grid operator.
In a blog post last May, the U.S. Department of Energy described how virtual plants have come to include not only individual meters, but also individual appliances that are designed to interact with the grid, as well as electric vehicle charging stations and energy storage facilities.
“Operators gain the flexibility to better reduce peak demand and, as a result, defer investment in additional capacity and infrastructure to serve a peak load that is expected to increase as we electrify the nation’s economy,” explained Jigar Shah, director of the Energy Department’s Loan Programs Office.
Why don’t we all have virtual power plants?
For all their potential benefits, virtual power plants are a relatively new phenomenon, and they still account for a vanishingly small percentage of grid activity in the U.S.
In a followup blog post last October, Shah noted that the market for virtual power plants has only been open since 2020, through an order of the Federal Energy Regulatory Commission. “Nearly two years later, VPPs are just beginning to compete in organized capacity, energy, and ancillary services markets at a meaningful scale at the regional level,” Shah wrote.
In particular, Shah focused on the need for virtual power plants to secure revenue contracts. “To unleash the capital that makes ratepayer and wholesale power cost reductions possible, incumbent financiers need to see lower customer acquisition costs and consistent revenues for the critical services provided,” Shah noted.
Heeding the VPP call
GM and Ford have heeded the call for virtual power plants under the banner of the VP3, the new Virtual Power Plant Partnership hosted by the clean energy organization Rocky Mountain Institute (RMI). Other VP3 founding stakeholders include Google Nest, OhmConnect, Olivine, SPAN, SunPower, Sunrun, SwitchDin and Virtual Peaker.
GM and Google Nest served as seed funders of VP3. RMI also hopes to build on the success of its Renewable Energy Buyers Association partnership, of which GM is also a founding member.
“VP3 is an initiative based at RMI that works to catalyze industry and transform policy to support scaling VPPs in ways that help advance affordable, reliable electric sector decarbonization by overcoming barriers to VPP market growth,” according to a press announcement from the Rocky Mountain Institute.
“Our analysis shows that VPPs can reduce peak power demand and improve grid resilience in a world of increasingly extreme climate events,” added RMI CEO Hon Creyts, in a statement. “A growing VPP market also means revenue opportunities for hardware, software, and energy-service companies in the buildings and automotive industries.”
As a collaborative effort, VP3 will work to raise awareness about the benefits of virtual power plants, develop best practices and standards across the industry, and promote supportive policies.
The electric vehicle connection
Electric vehicles are in a perfect position to contribute to and benefit from virtual power plants, due to their mobility, flexibility and large energy storage capacity. That explains why Ford and GM jumped at the opportunity to get involved with VP3 as founding members.
Mark Bole, GM’s head of V2X and battery solutions division, noted that the V3 collaboration “underscores GM’s commitment to creating a more resilient grid, with EVs and virtual power plants playing a key role in helping to advance our all-electric future.”
In a separate announcement, Bill Crider, head of global charging and energy services at Ford, explained that electric vehicles are “introducing entirely new opportunities for consumers and businesses alike, creating a greater need for sustainable energy solutions to responsibly power our connected lifestyles.”
“Supporting grid stability through the introduction of technologies like Intelligent Backup Power is central to Ford’s strategy, and collaborating to advance virtual power plants will be another important step to ensure a smooth transition to an EV lifestyle,” Crider added.
Who’s next on the virtual power plant bandwagon?
Among the Big Three legacy U.S. automakers, Stellantis has yet to engage with VP3. That could change as the company that now owns Dodge and Chrysler ramps up its interest in virtual power plants.
In 2020, Stellantis began work on a large-scale virtual power plant in Italy based on electric vehicle-to-grid technology. The company, which also counts Fiat and Peugeot among its subsidiaries, may be waiting on the results of that project before committing itself to a policymaking endeavor in the U.S.
Interest in virtual power plants is also growing at Volkswagen and other overseas automakers that have an eye on the U.S. market. In addition, Tesla has embarked on virtual power plant ventures in California and Texas, deploying both its vehicle batteries and its Powerwall home batteries.
It remains to be seen if Tesla will collaborate with VP3 on industry standards, though. Tesla CEO Elon Musk established a well-known reputation for not collaborating in the early days of electric vehicle commercialization. He held out Tesla’s charging system as unique to Tesla, even as other automakers worked to create the standard CCS charging technology for Europe and North America.
Since its introduction in 2011, CCS has been supported by almost all other auto manufacturers in those two markets. Even Tesla itself leans on CCS to some degree, since it provides Tesla owners with an adapter to use at CCS charging stations. (Note: Japan and China continue to use their own charging systems.)
More recently, Musk further cultivated his outsider status in the early days of the COVID-19 lockdown when he criticized the U.S. government’s public safety guidelines and upstaged an inter-industry collaboration to restart U.S. factories. He also spread confusion and misinformation about the virus and the COVID-19 vaccine on social media.
When U.S. President Joe Biden convened a major media event for auto manufacturers in August of 2021, it was no surprise to see Tesla left out in the cold. Last year, the S&P 500 also took Tesla to task for not keeping pace with its peers in the auto industry on corporate ESG (environment, social, governance) issues.
Musks’s use of social media also makes Tesla an outlier among CEOs in the auto industry and elsewhere, in regards to his willingness to amplify and normalize white nationalist rhetoric.
With or without Tesla, though, VP3 is yet another instance in which industry leaders are swatting away the anti-ESG agitators like flies to take advantage of new opportunities to grow their businesses and attract new customers.
A colorized image of the 1963 civil rights March on Washington, where an estimated 250,000 people gathered to demand equal access to jobs, housing and education — and hear Martin Luther King Jr.’s now famous “I Have a Dream” speech.
By Mary Mazzoni from triple pundit.com • Reposted: February 3, 2023
Corporate efforts to observe Black History Month are often cringe-worthy at best and offensive at worst. If you’re planning to add a kente avatar on social media or pen a generic letter to employees, please do us all a favor and stop now. Business leaders can — and should — do better. Here’s some advice to get you started, from the Black thought leaders who have been telling us for years.
Don’t: Pander to your employees and customers this Black History Month
In the Year of Our Lord 2023, we should really all be past the platitudinous “Happy Black History Month” email to employees — or worse, the dreaded product drop. Think back to when TriplePundit asked workplace inclusion expert Kim Crowder about corporate cash-grabs around Juneteenth: “This is a repeat of why Juneteenth was needed,” she reminded business leaders. “It is basically commodifying the Black American experience by those who do not share those experiences and who have benefitted from the enslavement of people.”
The same holds true for brands that seek to capitalize on Black History Month while doing little to honor Black history or benefit Black communities. Just ask Ernest Owens, editor at large for Philadelphia magazine, who has never been shy with his opinions about how brands observe the holiday.
“Just like Pride Month, Black History Month has become a routine time of year when corporations say the absolute most while doing the least for marginalized communities,” he wrote in a 2021 op/ed for the Washington Post.
Do: Look inwardly — and act accordingly
Rather than looking to commodify the holiday or pat your company on the back for its great work on racial equity, turn your mind to the work ahead of you — and communicate frankly and thoughtfully with your employees and stakeholders about what comes up.
“Organizations should be looking beyond one day and focusing on areas such as pay equity, promotion rates, the ability for Black team members’ work to be seen and acknowledged, and partnering with Black businesses regularly — including paying them well for their work,” Crowder told us. “The goal is to work toward Black liberation every day.”
Don’t: Expect praise for pennies
In December polling commissioned by TriplePundit, less than 20 percent of over 3,000 U.S. consumers said they’d be impressed by a billion-dollar company donating $5 million to a social cause like racial equity, with the majority agreeing that “business should do more.”
Findings like these indicate that people are growing more wary of brands appearing to “check the box” by donating to a nonprofit. They want to see what changes you’re making, and they want to hear about the outcomes of that change.
“The key here is authentic leadership — in other words, walking the walk, not just talking the talk,” Gary Cunningham, president and CEO of Prosperity Now, told TriplePundit back in 2021. “It’s easy to say that you’re anti-racist without changing anything about how your organization operates.”
Do: Champion your partners
Of course, there’s absolutely nothing wrong with donating to nonprofits or establishing new programs that look to address racial equity, nor is it intrinsically wrong to communicate these programs during Black History Month. But if you do, do so thoughtfully.
Find clear alignment between your company, your teams and the nonprofits you support. Communicate with your stakeholders about the great work your partners do and why you trust them. For example, did someone from your team recommend this organization? Does it work in your community? Is it particularly positioned to address the issues your teams and stakeholders care about most? Remember, this is an opportunity to educate your stakeholders about the issues — and highlight the perspective of your community partners that know these issues best.
“So often I’ve witnessed corporations and business leaders act as if because they are very smart and can solve problems that they can understand and know how to solve the complex problems of racial and ethnic inequality,” Cunningham told us. “Trust the guidance of people who can help you learn, help you bring your work into the community, and help you understand the depth of the issues that you’re trying to contain.”
Don’t: Task your Black employees with more unpaid work
As companies pushed to demonstrate their commitment to racial equity in 2020, it wasn’t long before they looked toward their Black employees to do the hard work for them.
Asking Black employees to speak on panels, lead new employee resource groups, or consult on strategies for diversity, equity and inclusion (DEI) — all for no added compensation — is not only unfair, but it also plainly illustrates the very inequities these companies claim to oppose. Over half of Black women in particular told the consultancy Every Level Leadership they feel singled out as the sole resource to educate their colleagues about DEI.
Think of your team’s well-being, and don’t repeat the ugly cycle this Black History Month. As Najoh Tita-Reid, chief marketing officer for Logitech, observed in Fortune back in June 2020: “Black people did not create these problems, so please do not expect us to resolve them alone.”
Do: Take responsibility for educating yourself
It’s past time for non-Black people to take personal responsibility for educating themselves about racial justice issues, rather than leaning on their friends and colleagues. If you’re an executive, read more, watch more and generally consume more media about the topic. Encourage everyone in your organization to do the same, and give them opportunities to discuss it, if and when they choose.
“Take responsibility for your own education on racial issues,” Tita-Reid suggested in Fortune. “Create companywide forums and Q&A sessions to educate large groups. Bring in experts, if needed, to provide actionable plans that systematically implement racial equity. Identify those of us who are open to speak, and respect those of us who do not want to talk about the situation.”
When it comes to your formal DEI strategy work: Resource it, and pay your teams accordingly. “Do not shortchange race equity work,” Andrea J. Rogers and Tiloma Jayasinghe of Community Resource Exchange recommend in Nonprofit Quarterly. “And if you feel like doing that, ask yourself why, and take this opportunity to unpack biases around what is valued, who is valued, and what impact means for your organization.”
By Dariush Mozaffarian, Dean of Friedman School of Nutrition Science and Policy, Tufts University, Jeffrey B. Blumberg, Professor Emeritus in Nutrition Science and Policy, Tufts University, Paul F. Jacques, Professor of Nutrition Science and Policy, Tufts University and Renata Micha, Associate Professor in Human Nutrition, Tufts University from The Conversation • Reposted: January 24, 2023
Many people aim to start the year off with healthier food choices. But how do you choose between seemingly similar foods, snacks or beverages? How does a bagel with cream cheese compare to toast topped with avocado, for instance? Or a protein-based shake compared to a smoothie packed with fruits? Or two chicken dishes, prepared in different ways?
As nutrition scientists who have spent our entire careers studying how different foods influence health, our team at Tufts University has created a new food rating system, the Food Compass, that could help consumers and others make informed choices about these kinds of questions.
Food rating systems explained
Many such systems exist and are widely used around the globe. Each one combines facts about different nutritional aspects of foods to provide an overall measure of healthfulness, which can be communicated to consumers through package labels or shelf tags. They can also be used to help guide product reformulations or socially conscious investment goals for investors.
All such food rating systems have strengths and limitations. Most aim to be simple, using data on just a few nutrients or ingredients. While this is practical, it can omit other important determinants of healthfulness – like the degree of food processing and fermentation and the presence of diverse food ingredients or nutrients like omega-3s and flavonoids, plant compounds that offer an array of health benefits.
Some systems also emphasize older nutrition science. For example, nearly all give negative points for total fat, regardless of fat type, and focus on saturated fat alone, rather than overall fat quality. Another common shortcoming is not assessing refined grains and starches, which have similar metabolic harms as added sugars and represent about one-third of calories in the U.S. food supply. And many give negative points for total calories, regardless of their source. Millions of Americans are overweight yet undernourished.
Enter the Food Compass
To address each of these gaps, in 2021 our research team created the Food Compass. This system assesses 54 different attributes of foods, selected based on the strength of scientific evidence for their health effects. Food Compass maps and scores these attributes across nine distinct dimensions and then combines them into a single score, ranging from 1 (least healthy) to 100 (most healthy). It incorporates new science on multiple food ingredients and nutrients; does not penalize total fat or focus on saturated fat; and gives negative points for processing and refined carbs.
We have now evaluated 58,000 products using Food Compass and found that it generally performs very well in scoring foods. Minimally processed, bioactive-rich foods like fruits, veggies, beans, whole grains, nuts, yogurt and seafood score at the top. Other animal foods, like eggs, milk, cheese, poultry and meat, typically score in the middle. Processed foods rich in refined grains and sugars, like refined cereals, breads, crackers and energy bars, and processed meats fall at the bottom.
We found Food Compass to be especially useful when comparing seemingly similar food items, like different breads, different desserts or different mixed meals. Food Compass also appears to work better than existing rating systems for certain food groups.
For example, it gives lower scores to processed foods that are rich in refined grains and starch and to low-fat processed foods that are often marketed as healthy, like deli meats and hot dogs, fat-free salad dressings, pre-sweetened fruit drinks, energy drinks and coffees. It also gives higher scores to foods rich in unsaturated oils, like nuts and olive oil. Compared with older rating systems, these improvements are more aligned with the latest science on the health effects of these foods.
We also assessed how Food Compass relates to major health outcomes in people. In a national sample of 48,000 Americans, we calculated each person’s individual Food Compass score, ranging from 1 to 100, based on the different foods and beverages they reported eating.
We found that people whose diets scored higher according to Food Compass had better overall health than those with lower scores. This includes less obesity, better blood sugar control, lower blood pressure and better blood cholesterol levels. They also had a lower risk of metabolic syndrome or cancer and a lower risk of death from all causes. For every 10-point higher Food Compass score, a person had about a 7% lower risk of dying. These are important findings, showing that, on average, eating foods with higher Food Compass scores is linked to numerous improved health outcomes.
Fine-tuning
While we believe Food Compass represents a significant advance over existing systems, more work is needed before it can be rolled out to consumers.
As one step, we’re investigating how the scoring algorithm can be further improved. For example, we’re considering the most appropriate scoring for food items like certain cereals that are high in whole grains and fiber but are also processed and have added sugar. And we’re looking at the scoring of different egg, cheese, poultry and meat products, which have a wide range of scores but sometimes score a bit lower than may make intuitive sense.
Over the coming year we will be refining and improving the system based on our research, the latest evidence and feedback from the scientific community.Whole grains are much better for you than refined grains.
In addition, more research is needed on how a consumer might understand and use Food Compass in practice. For example, it could be added as a front-of-pack label – but would that be helpful without more education and context?
Also, while the scoring system ranges from 1 to 100, could it be more accessible if scores were grouped into broader categories? For instance, might a green/yellow/red traffic light system be easier to understand?
And we’re hoping that future Food Compass versions might contain additional criteria to filter foods for people who follow special diets, such as low-carb, paleo, vegetarian, diabetic-friendly, low-sodium and others.
The big picture
Food Compass should not be used to replace food-based dietary guidelines and preferences. Raspberries and asparagus score really well – but a diet of only these foods would not be very healthy. People should seek a balanced diet across different food groups.
To help, Food Compass may be most useful to compare similar products within a food group. For example, someone who prefers eggs for breakfast can look for higher-scoring egg dishes. Those preferring cereal can look for higher-scoring cereals. And even better, Food Compass can help people add other highest-scoring foods to their plate – like veggies and healthy oils to eggs, and fruit and nuts to cereal – to increase the overall health benefits of that meal.
To make use by others as easy as possible, we’ve published all the details of the scoring algorithm, and the scores of the products evaluated, so that anyone can take what we’ve done and use it.
Stay tuned – as we complete additional research, we believe Food Compass will become an important tool to clear up confusion in the grocery store and help people make healthier choices.
Executives view climate change as both a short- and long-term threat, but most are failing to address it proactively, PwC CEO Survey shows. By Mary Mazzoni from Triplepundit.com • Reposted: January 21, 2023
We’ve heard it for years — “business-as-usual isn’t working” — and the annual PwC CEO Survey indicates executives are well aware. Nearly 40 percent of more than 4,000 responding global CEOs think their companies will no longer be economically viable in a decade if they continue down their current path.
That’s a pretty big deal. Yet while one would think such a grim consensus would spur an immediate push for change, many executives told PwC they don’t have nearly enough time to think and talk about the future. Maintaining current operating performance consumed the biggest share of CEOs’ time last year, according to the survey, and executives admitted they’d rather spend more time evolving their companies’ strategies to meet future demands.
Findings like these reflect the “dual imperative” facing CEOs around the world as they look to reinvent their businesses for the future while navigating a laundry list of daunting challenges in the present day, the PwC CEO Survey found. “If organizations are not only to thrive but survive the next few years, they must carefully balance the dual imperative of mitigating short-term risks and operational demands with long-term outcomes — as businesses that don’t transform, won’t be viable,” Bob Moritz, global chairman of PwC, said in a statement.
So, will business leaders act to save themselves, or will they be too busy with next quarter’s P&L? Let’s take a closer look inside the survey to see what executives are saying — and what it could mean for the future.
Executives view climate change as both a short- and long-term threat, but most are failing to address it proactively, PwC CEO Survey shows
While managing climate risk is a long-term challenge that continues to vex executives, the PwC CEO Survey indicates many are also concerned about the effects of climate change in the here and now.
Most of the CEOs surveyed expect their businesses to feel some degree of impact from climate change within the next 12 months. About half predict the effects of climate change will have a “moderate,” “large” or “very large” impact on their cost profiles. More than 40 percent anticipate impacts to their supply chains, while around a quarter are worried about climate-related damage to their physical assets.
Their concerns are warranted: The 10 most significant climate-related disasters to strike the world last year caused more than $3 billion worth of damage each, according to the World Economic Forum.
Still, the way they respond could use some work. “Deeper statistical analysis of the survey shows that the CEOs who feel most exposed to climate change are more likely to take action to address it,” PwC researchers observed.
“This kind of reactive approach is understandable — when your house is in the path of a forest fire, you reach for the hose — but it creates risks of its own,” they continued. “Combating climate change requires a coordinated, long-term plan. It won’t be solved if the only companies working on it are those that face immediate financial impact.”
Beyond issues with reactivity, the researchers underscore that they “don’t know how much” the actions most often taken by businesses — such as decarbonization initiatives and moves to innovate more climate-friendly products and services — “will move the needle, particularly in the near-term, which, in light of emissions already in the atmosphere, promises continued warming under virtually every scenario.”
While it remains murky if business actions will do anything to curb their climate risk in the short term, the researchers warn that many long-term corporate climate strategies are also incomplete or less effective than they could be — setting the stage for even more serious risk in the years to come.
More than half of all CEOs surveyed, including 70 percent of those at U.S. companies, say their teams have no plans to apply an internal carbon price to decision-making, “even though doing so could help them account for considerations like taxes and incentives, and clarify strategic trade-offs,” the researchers found. Many are also dropping the ball on reporting, as another recent PwC survey found that 87 percent of global investors think corporate reporting contains unsubstantiated sustainability claims, often referred to as “greenwashing.”
CEOs predict declining global economic growth, but is that really a bad thing?
Nearly three-quarters (73 percent) of CEOs believe global economic growth will decline over the next 12 months. This is a marked departure from recent years, as more than 75 percent of respondents to the 2020 and 2021 iterations of the PwC CEO Survey said they thought economic growth would improve. It’s also the most pessimistic CEOs have been regarding global economic growth since the PwC CEO Survey began asking this question 12 years ago.
This comes as no major shock, as other recent polling indicates CEOs around the world are bracing for a recession in 2023. Still, it begs a few questions: Is a slowdown in economic growth inevitable, and is it even a bad thing?
In the decades since economist Milton Friedman declared that the social responsibility of business is to increase profits for shareholders, conventional reason has dictated that the ultimate marker of business health is to grow bigger and bigger every year, with solid shareholder returns that climb on a quarterly basis.
Yet study after study indicates that the never-ending pursuit of more consumption, more profit and more money does not equate to better quality of life across the economy — and the spoils of rugged capitalism are not shared equally. In the U.S., for example, CEO pay has grown by a staggering 1,460 percent since 1978, while median worker pay has not even kept pace with inflation, increasing by a mere 18 percent over the same period. U.S. CEOs were paid 399 times as much as a typical worker in 2021.
So, if the dogged pursuit of “more, more, more” does not increase quality of life for the many, and workers by and large find themselves more wage-poor than their parents were, who really benefits from eternal economic growth as a marker of success? Even businesses stand to lose out as CEOs cash their bloated paychecks while predicting their companies will be belly-up within a decade.
Against a backdrop like this, it makes sense that conversations around degrowth are having a major moment in mainstream business circles. As the name implies, degrowth calls for intentional reductions in production and consumption to stay within the boundaries of a resource-constrained world — particularly in rich countries, allowing developing countries to have a greater share of the economic pie (and the global carbon budget).
While respondents to the PwC CEO Survey stop far short of advocating for strategic degrowth, they don’t plan to cope with the impending recession in the way many might expect. While over half of responding CEOs say they are moving to cut operating costs and raise prices, the majority (60 percent) say they do not plan to reduce the size of their workforce in the next 12 months, and 80 percent say they have no plans to reduce compensation.
Still, it makes sense that predictions about the worst recession in a century would be preoccupying for executives, but as Moritz of PwC observed, those that don’t keep the future in mind are destined for failure. This type of push and pull between long-term longevity and short-term profit is one that has defined conversations around stakeholder capitalism and corporate responsibility for as long as they’ve existed. Parsing through these survey responses, it could be that Mother Nature — and the markets — will finally force executives’ hands, pushing into fruition something that for decades was simply words.
P&G Releases 2022 Citizenship Report • Reposted: January 18, 2023
In today’s complex world, we know it has never been more important for P&G to step up as a responsible corporate citizen. This means delivering sustainable growth and value creation and strengthening the communities where we live and work, while balancing the needs of those we serve and support — from our consumers and retail customers to our employees and shareholders.
That’s why we’re building citizenship into how we do business, every day. From supporting people who rely on our superior performing products and services, to using our global reach and scale to deliver Acts of Good that help communities grow and thrive, we are united in our efforts to be a Force for Growth and a Force for Good across our citizenship focus areas: Community Impact, Equality & Inclusion and Environmental Sustainability and underpinned by our commitment to Ethics and Corporate Responsibility.
Our 2022 Citizenship Report shares our ongoing progress and commitment to making a difference for the billions of people we serve every day and the planet we call home.
Here are just a few of the different ways in our fiscal year that we have stepped up to inspire lasting and meaningful impact for our employees, through our brands and with our partners.
Supporting Families After Natural Disasters
We know that in moments of crisis, everyday experiences like having clean clothes or a supply of diapers become health and hygiene necessities. That’s why this year, as devastating floods hit communities around the world, including Kentucky (U.S.), British Columbia (Canada) and throughout much of Pakistan, we came together with partners like Matthew 25:Ministries, GlobalMedic and HOPE charities to provide vital relief support to the communities most impacted. Learn more about our disaster relief efforts.
Protecting Our Shared Home
We are committed to achieving Net Zero greenhouse gas (GHG) emissions across our operations and supply chain by 2040, driving greater circularity for plastics, helping build a water positive future and protecting the long-term health of natural ecosystems.
From working with partners in water-stressed areas to support solutions that will result in meaningful benefits to help build a Water Positive Future, to protecting the endangered Malayan tiger population with the World Wildlife Fund Malaysia, we’re acting with partners around the world to ensure a healthy planet for present and future generations. Learn more about the impact we’re making for our shared home.
Creating Visibility and Addressing Bias
We aim to create a society where equality and inclusion are achievable for all. Through initiatives like Can’t Cancel Pride, we’re celebrating the unique stories that unite the LGBTQ+ community, while raising funds for the LGBTQ+ organizations that create local impact. We’re also continuing to use our voice to spark dialogue and bring communities together, as we did with The Name, a film that encourages people to learn how to pronounce Asian American Pacific Islander names. Read more about the actions we’re taking to create a more equal world here.
Acting for Tomorrow’s Leaders
We know that the young people inheriting our businesses, communities and planet are already inspiring change today. That’s why we’re helping nurture and grow the next generation through initiatives like the Hispanic Star’s Capitanes del Futuro, which provides future Hispanic leaders access to role models and essential resources within the soccer ecosystem. To create opportunities for moving women forward in leadership, our gender equality partner Vital Voices has created a unique training opportunity for young women from Argentina, Brazil, Costa Rica, Guatemala, Mexico, and Panama. Read more about the efforts we’re making for future generations.
Addressing Health & Hygiene Inequalities
Supporting health equity is one of the greatest ways to create community impact. That’s why we’re taking action through our brands to create equal access to essential health and hygiene products, care and services around the world. This includes:
Pampers partnering with healthcare professionals to address Black maternal health disparities.
Oral B helping Close the Smile Gap by working with partners to offer free oral health care for families in need.
Always helping End Period Poverty for the 1 in 5 girls who miss school due to lack of period products.
Doing good is in our DNA as a company. For decades we’ve been creating impact across the world. This is only possible by working closely with our incredible partners, whose essential expertise and resources, including deep knowledge of and access to local communities, enable us to help create positive impact together.
In this season of reflection and gratitude, we’re especially thankful for all the people and partners across the world who have joined us to help make a difference in communities through so many Acts of Good in 2022 and throughout the years.
As 2023 approaches, we remain deeply committed to doing our part as a corporate citizen by inspiring and supporting the actions needed to address our collective challenges and to create sustained impact, now and for the future.
Learn how we are continuing to drive solutions that make a difference for people and our planet in our 2022 Citizenship Report and on our social media using #ActsOfGood.
A logjam of Southwest 737s on December 27, 2022 at Santa Barbara Municipal Airport. On a typical day, there are six Southwest arrivals and 6 departures at Santa Barbara, and rarely more than one of the airline’s 737 at the airport at the same time. Photo: Glenn Beltz
Southwest is attempting to appease holiday travelers who were stranded in the airline’s latest fiasco with frequent flier miles and a mediocre, excuse-laden apology — but its pilots’ union (Southwest Airlines Pilots Association, SWAPA) is having none of it. They’ve called leadership out — referring to executive management as a cult in a letter that lists the ways their failures have led to the brand’s persistent problems. Instead of investing in much-needed technological upgrades and staffing, the letter accuses the airline of “maximizing shareholder return” at their expense. Like all corporate entities, Southwest has a duty to its employees and customers first. The airline’s massive disruptions will likely continue until it recognizes the need for corporate responsibility and purpose beyond enriching shareholders and stock buybacks.
Extreme winter weather caused a wave of cancellations across airlines this holiday season — although none weathered it quite as badly as Southwest. Over 15,000 flights were scratched by the transportation giant from December 22nd through the 30th. But it wasn’t just the ice and snow that did them in. As NPR and other news outlets reported, the raging “tripledemic” had many workers out sick — then to top it off Southwest’s ancient staff scheduling software just couldn’t handle the crisis.
What’s worse, though, is that none of this is a surprise to anyone at the airline. Union pilots have been begging leadership to upgrade their technology for years. “I fear that we are one thunderstorm, one ATC event, one router brownout from a complete meltdown. Whether that’s Thanksgiving, or Christmas, or New Year, that’s the precarious situation we are in,” Casey Murray, SWAPA President, is quoted as saying in November, not long before the meltdown.
In fact, this isn’t Southwest’s first self-inflicted disaster. An issue with air traffic control in Jacksonville was felt around the country in October 2021 when the incident had 29 percent of the airline’s flights canceled or temporarily grounded in cities nationwide. Additionally, 2,300 flights were canceled in July 2016 when the airline’s routers went out and issues in 2014 caused 130 flights to be canceled out of Chicago during the month of January. “Systemwide meltdowns at Southwest Airlines have been increasing in frequency and magnitude over the past 15 years,” according to the letter — which was signed by SWAPA’s 2nd Vice President Captain Tom Nekouei.
Nekouei’s main point throughout the letter is that a cultural shift happened at Southwest when Garry Kelly assumed the top position, noting that during that time the company rewarded shareholders with roughly $12 billion and Kelly’s compensation package went up 700 percent. Although he is no longer CEO, Nekouei asserts that Kelly’s influence still dominates the airline’s corporate culture.
Of the lack of investment in technological upgrades needed to keep flights running, Nekouei wrote: “Share buybacks that were once illegal, that provide no benefit for the Company itself while artificially inflating share prices (thus inflating stock-based executive compensation) and sent the clear message that the Company has excess cash on hand but that the CEO thinks there is no better place for investment of capital within his Company.”
Nekouei further noted that while nothing tangible has been done to fix the structural and technological problems, “we continue to receive saccharine corporate-communications- department-written and legal-counsel reviewed ‘we’re sorry’ and ‘I love you’ meaningless and generic messages from SWA corporate executives.” And, while these apologies ring hollow right along with the measly 25,000 frequent flier points Southwest has offered those travelers who were caught in the worst of the mess, Nekouei offered a solution — a return to the values and purpose the airline was founded on:
“You put your employees first. If you truly treat your employees that way, they will treat your customers well, your customers will come back, and that’s what makes your shareholders happy. So there’s no constituency at war with any other constituency. Ultimately, it’s shareholder value that you’re producing.” — Herb Kelleher
The 2016 Cause Marketing Halo Awards announced its 42 finalists of programs designed to yield both social and financial dividends. The Gold and Service winners in each of ten categories will be announced at the at the 2016 Cause Marketing Forum Annual Conference in Chicago June 1-2, 2016.
More than 100 entries were received in the Cause Marketing Forum’s competition for North American programs designed to yield social and financial dividends.
Programs named finalists in multiple categories include
Bank of America’s “Pass the Flame” campaign with Special Olympics promoting inclusion of people with intellectual disabilities in sports and in life;
‘Think it Up’ Staples/DonorsChoose.org partnership supporting student-powered, teacher-led projects in classrooms across the country;
‘Gateways and Getaways’, a bird- and flight-centric education program for New York families from JetBlue and the Wildlife Conservation Society;
‘Dementia-Friendly Massachusetts’ which Senior Living Residences developed to help people better understand the challenges of living with dementia;
‘#Unlimited’ a tween-targeted back to school program from Old Navy and Boys & Girls Clubs of America to support summer programming for kids.
The Halo Awards will highlight many of the most innovative programs that companies and causes took at the intersection of profit and purpose last year. Some examples include:
A video game marathon that raised funds to put veterans back to work.
An app that helps autistic children make social and emotional connections.
Canvas shoes turned into artwork to support high school arts programs.
“Thumb Socks” that help persuade teens from texting and
With the proliferation of cause campaigns reaching consumers each day, the Cause Marketing Halo Awards are designed to bring clarity, innovation and best practices to light.
About the Cause Marketing Forum
Now in their fourteenth year, the Cause Marketing Halo Awards are North America’s highest honor in the field of cause marketing. They are presented to US and Canadian companies by the Cause Marketing Forum, a company dedicated to providing business and nonprofit executives with the practical information and connections they need to succeed.
Timberland’s partnership with Omni United will create co-branded automotive tires specifically designed to be recycled into footwear outsoles when their road journey is complete.
According to a joint press announcement, Timberland and Omni United first conceived this partnership three years ago, when sustainability leaders from both brands came together to address a longstanding shared concern. The tire and footwear industries are two of the largest users of virgin rubber. The majority of tires on the market today have a limited life span; ecologically-sound disposal at the end of that life span presents yet another challenge.
In a statement, Stewart Whitney, president of Timberland said, “Our partnership with Omni United marks a new day for the tire and footwear industries. An outdoor lifestyle brand and an automotive industry leader may, at first blush, seem unlikely partners – yet our shared values have given birth to tires that express a lifestyle, deliver performance and safety, and prove that sustainability can be so much more than a theory. It’s this kind of cross-industry collaboration that’s fueling real change and innovation in the marketplace.”
G.S. Sareen, president and CEO of Omni United said, “Omni United and Timberland are taking an entirely different view of sustainability by designing Timberland Tires for a second life from the outset. That is one of the reasons why establishing a take-back and recycling program before the first tire is sold – and choosing an appropriate rubber formulation for recycling the tires into footwear – is so critical. Our intent is to capture every worn Timberland Tire and recycle it for a second life, so none is used as fuel or ends up in a landfill.”
To bring the tire-to-shoe continuum to life, Timberland and Omni United have established an industry-first tire return/chain of custody process, to ensure the tires go directly to dedicated North American recycling facilities to begin their path toward a second life as part of a Timberland® product. Key steps include:
Tire retailers will set aside used Timberland Tires for recycling after consumers purchase new tires to replace their worn out tires.
Omni United is partnering with Liberty Tire Recycling and its network of tire collection and recycling firms to sort and segregate the Timberland Tires at the companies’ facilities.
The used tires will be shipped to a North American tire recycling facility where they will be recycled into crumb rubber.
The crumb rubber will be processed further into sheet rubber for shipment to Timberland outsole manufacturers.
The rubber will be mixed into a Timberland-approved compound for outsoles that will ultimately be incorporated into Timberland® boots and shoes. This blended compound will meet the company’s exacting standards for quality and performance, as well as its stringent compliance standards.
Timberland Tires will be sold initially in the United States at leading national and regional tire retailers, as well as online through a state-of-the-art e-commerce platform.
In a new campaign celebrating the benefits of the great outdoors, The North Face introduces a video today encouraging city dwellers to embrace nature and the environment. Using Woody Guthrie’s venerable This Land Is Your Land reworked by My Morning Jacket, the campaign subtly demonstrates the uplifting benefits of outdoor activity.
The centerpiece of the campaign is the 90 second video. The spot closes with the store’s long-running slogan, “Never stop exploring,” and urges consumers to download the new recording of the song from iTunes. The download will cost $1.29, with Apple pocketing its customary third and the rest going to the 21st Century Conservation Service Corps within the United States Interior Department, which hires veterans and at-risk young people to restore and preserve public land. Additionally, the retailer is contributing $250,000 to the corps.
New research released in London this week points to the effectiveness of cause driven social campaigns activated by brands – showing superior business results than traditional brand communication stories, especially in social media.
In the report, Seriously Social by marketing consultant Peter Field, research indicates that not only were cause-driven campaigns better at delivering business effects — they also generated greater numbers of brand effects once the non-profits were removed from the equation.
Field analysed case studies from the Warc Prize for Social Strategy – a global competition for examples of social ideas that drive business results – defined social strategy as any activity designed to generate participation, conversation, sharing or advocacy.
“Cause-driven campaigns are more strongly associated with business effects,” Field stated, a finding that became even clearer when stripping non-profit campaigns out of the calculation.
Field was able to compare the impact of campaigns that associated a brand with a good cause, with the impact of those that built a story around a brand.
He found that media usage for cause-driven campaigns was more strongly focused on online, WOM/earned media and traditional advertising channels (excluding TV). Brand story campaigns, in contrast, made wider use of media channels and, as they were more likely to be short-term campaigns, included much more activation.
These patterns had an impact on subsequent effectiveness. The business effectiveness of cause driven-campaigns was found to increase markedly over time, whereas that of brand story campaigns did not.
“Again, this is a reflection of the short-term outlook of the latter group,” Field said, who suggested that conclusions about effectiveness drawn over a period of less than six months would underplay the true strength of cause-driven campaigns.
“Brands often fall short of their potential to do good – reputation without responsibility. Brandkarma will change that.”
Upendra Shardanand, founder Daylife
Welcome Brandkarma.com – the first social community that will rate and review brands ability to do good in the world.
Consumer research has repeatedly demonstrated that people expect businesses to operate responsibly and to contribute to positive change in the world. Many people say that if brands fail to operate responsibly, they will stop purchasing the products that the brand provides.
Brandkarma.com was launched to empower consumers to better translate those beliefs into action. Brandkarma.com allows consumers to see brands holistically – not only the quality of their products but the brand behaviors toward their employees, their community and the planet at large.
Unilever has launched a worldwide new initiative to motivate millions of people to adopt more sustainable lifestyles. Launched yesterday on Universal Children’s Day in Brazil, India, Indonesia, the UK and the US, Project Sunlight aims to make sustainable living desirable and achievable by inspiring people, and in particular parents, to join what Unilever sees as a growing community of people who want to make the world a better place for children and future generations.
Project Sunlight was launched with the four-minute film embedded here and created by DAVID Latin America and Ogilvy & Mather London at dawn on November 20th in Indonesia and then follow the sun to India, the UK, Brazil and the US. Additional information can be found at an online hub – www.projectsunlight.com – which brings together the social mission stories of Unilever’s brands across the world, and invites consumers to get involved in doing small things that help their own families, others around the world and the planet.
To mark the launch of Project Sunlight on Universal Children’s Day, Unilever will be helping 2 million children through its ongoing partnerships, providing school meals through the World Food Programme; supporting Save the Children to provide clean, safe drinking water; and improved hygiene through UNICEF.
Ogilvy & Mather Chairman and CEO Miles Young, explains: “Unilever asked us to find a new way to talk about sustainability that would make the benefits real for ordinary people. Project Sunlight is founded on the principle that even small actions can make a big difference and that together, we can create a brighter future. We are honored to be a part of such a positive and significant movement for the good of our client and our communities.” Famed film director Erroll Morris directed “Why bring a child into this world?” including moving interviews with expectant parents from around the world.
The project draws on the legacy of Unilever’s founder Lord Leverhulme, who believed that he could change the world with a brand of soap he called Sunlight.
Kudos to Unilever, Ogilvy, DAVID and everyone involved in this important initiative that hits at the heart of the matter: if we can’t work to improve living conditions on our precious planet, how dare you bring a child into this world.
An overwhelming majority of Americans want brands to get engaged in creating and implementing recycling programs, according to a new survey of 1000 adults by the Carton Council of North America (CCNA).
In a statement, Jason Pelz, VP of environment at Tetra Pak North America, and VP of recycling projects for the CCNA said, “First and foremost, this survey reiterates the importance of including a recycling message on product packaging. In an increasingly competitive and green‑minded climate, consumers are revealing they expect food and beverage brands to actively help increase the recycling of their packages.”
U.S. consumers also indicated that they look first to the products they purchase for environmental information, ahead of other resources, with the vast majority (76 percent) consulting a product’s packaging to learn if a package is recyclable, followed by the product’s company website (33 percent) and the consumer’s city website (26 percent).
Importantly, 45% say their loyalty to food and beverage brands would be impacted by that brand’s engagement with environmental causes.
The Carton Council is leading a national effort to increase access to carton recycling in the U.S. In 2009, 21 million U.S. households had access to carton recycling in 26 states. Now, 52.5 million households in 45 states can recycle cartons, a 150 percent increase that includes 64 of the nation’s top 100 cities. Food and beverage brands that use cartons for their products are encouraged to join this effort, especially in helping promote carton recycling to their customers. CCNA can provide companies with tools to inform their customers — from the first step, which is adding the recycling logo to packages and recycling information on their websites, to an extensive list of possibilities beyond that.
BSR/GlobeScan of 700+ corporate sustainability executives in companies worldwide shows decreasing levels of collaboration between sustainability functions and other core corporate functions.
Survey respondents note a lower level, and decreasing, engagement between sustainability functions and corporate functions, such as investor relations (with 37 percent of those surveyed saying they engage with investor relations, down 1 point from 2011), human resources (34 percent, down 3 points), R&D (32 percent, down 9 points), marketing (28 percent, down 14 points). The weakest area of engagement is between corporate sustainability and finance at 16 percent, down 2 points from 2011. Unless greater collaboration is made in this area, the business case for sustainability and its potential positive impact on financial performance will be very difficult to make.
“The trend toward weaker engagement between sustainability functions and core functions such as finance, marketing, HR, investor relations, and R&D, is concerning.” Chris Coulter, CEO at GlobeScan, noted, “Not only is engagement limited with these strategic areas, but collaboration between them and sustainability teams has declined—in some cases by a significant margin. While there is a clear need for external collaboration, there is an equally important case to be made for greater internal collaboration.”
Additional topline findings from this survey include:
When asked to choose which sustainability issues need collaboration the most, climate change and public policy frameworks promoting sustainability are ranked highest.
Only one in five companies has fully integrated sustainability into business.
Engagement between sustainability functions and corporate functions such as marketing, R&D, and finance remains very low.
Collaboration by BSR member companies focuses more often on engagement with NGOs and other businesses than it does on engagement with government.
Fewer companies collaborate often with governments (46 percent) or media (27 percent), both of which are rated as the most difficult partners for collaboration.
21 percent report that their company is close to full integration. A majority say that their company is either about halfway to integration (51 percent), or is just getting started (22 percent).
“The survey reveals both the sense of urgency to address climate change, and the sense that meaningful progress goes well beyond the steps a single company can take,” observed Aron Cramer, President and CEO of BSR. “No one sector—not business, government, civil society, or consumers—can ‘save us’ from climate change.
A new global consumer study confirms the rise of nearly 2.5 billion consumers globally who are uniting style, social status and sustainability values to redefine consumption.
According to the report by BBMG, GlobeScan and SustainAbility : The2013 Aspirational Consumer Index – more than one-third of consumers globally (36.4%) identify as Aspirationals, defined by their love of shopping (78%), desire for responsible consumption (92%) and their trust in brands to act in the best interest of society (58%). The study draws from a telephone and in-person survey of more than 21,000 consumers across 21 international markets conducted in April 2013.
According to Eric Whan, Sustainability Director at GlobeScan, “Aspirationals are materialists who define themselves in part through brands and yet they believe they have a responsibility to purchase products that are good for the environment and society. By engaging Aspirational consumers, brands can further the shift toward more sustainable consumption and influence behavior change at scale.”
Key characteristics of Aspirational consumers include:
Trust in Brands: Nearly six in ten Aspirational consumers globally say they “trust global companies to act in the best interest of society” (58%), compared with 52% of all consumers;
Seek Style and Status: Three-fourths of Aspirational consumers say “I want to stand out by the way I look, my style” (73%), compared to 53% of all consumers;
Positive Influencers: Nearly nine in ten Aspirational consumers say “I encourage others to buy from socially and environmentally responsible companies” (88%), compared to 63% of all consumers;
Empowered Shoppers: Nearly eight in ten Aspirational consumers say “shopping for new things excites me” (78%), compared to 48% of all consumers, and believe they “can change how a company behaves based on my purchase decisions” (78%), compared with 66% of all consumers;
Responsible Consumers: Nine in ten Aspirational consumers say “I believe we need to consume less to preserve the environment for future generations” (92%), compared to 75% of all consumers, and that they are “willing to pay more for products produced in a socially and environmentally responsible way” (91%) compared to 64% of all consumers;
Young and Urban: Demographically, Aspirational consumers make up the largest percentage of Millennial (40%) and GenX (37%) generations, compared to 32% and 33% in the general population, respectively, and nearly six and ten (59%) live in cities; and
Strength in Emerging Markets: Countries with the largest populations of Aspirational consumers include China (46%), Nigeria (45%), Pakistan (44%), India (42%), Australia (41%), Canada (40%), Indonesia (38%), Greece (37%), France (36%), USA (36%), Turkey (35%) and the UK (34%).
“Driven by young, optimistic consumers in emerging markets and amplified by technology and social media’s influence, Aspirationals represent a powerful shift in sustainable consumption from obligation to desire,” said Raphael Bemporad, co-founder and chief strategy officer at brand innovation consultancy BBMG. “With Aspirationals, the sustainability proposition has changed from being the ‘right thing to do’ to being the ‘cool thing to do,’ and brands have a profound opportunity to harness sustainable design and societal values to inspire the next generation of commerce and create positive impact in the world.”
“For decades, green marketers have been speaking to the wrong consumers, assuming that by engaging the most committed ‘advocates’ we would create significant business growth, cultural relevance and change at scale,” Bemporad added. “What makes Aspirationals so compelling is that they combine an authentic commitment to sustainability with a love of shopping, design and social status, aligning economic, cultural and social forces to shift the way we shop.”
“With 2.5 billion consumers worldwide, Aspirationals offer an important opportunity to redefine sustainable consumption,” said Mark Lee, Executive Director at SustainAbility. “Like never before, brands can engage Aspirationals to pioneer new models and practices that can deliver economic growth while reducing negative impacts on the environment.”
In a recent survey of more than 1,800 adults in the United Kingdom, The Carbon Trust Fund found that 68% of people were unable to name a company that is taking sustainability seriously.
In addition, just 5% of respondents see businesses as being most effective in helping the environment. Despite the significant efforts many companies across the world are making to turn their business operations to more responsible and sustainable entities, the UK study underscores how poorly those companies are communicating their actions.
According to Tom Delay, the chief executive of Carbon Trust:
“While it’s clear that consumers still care about the environmental future, their perspective on where the responsibility falls is skewed. It cannot be solely down to environmental groups to shoulder the weight of protecting our planet’s natural resources. Businesses have an enormous role to play here and need to be seen to be doing their part. As businesses look for more ways to grow, sustainability should become a golden opportunity for investment, allowing them to become more resilient to future environmental resource shocks and to cut their costs and grow their revenues. The smart companies will invest now and put sustainability inside their businesses.”
The same survey of UK adults did have some encouraging signs regarding concern for the environment. The demand for green products appears to be increasing with only 6% saying they are less likely to buy a sustainable product and/or service than five years ago while almost three in ten (27%) said they are more likely. Increased concern about the personal impact of what they buy on the environment was the most important reason for this (45%) and 43% of the public surveyed said they lead a more sustainable life than five years ago.
For 140 years, the Levi’s® brand has made its 501® jean with the same care, craftsmanship and attention to detail. To that, they’ve added recycled plastic.
The Levi’s® 501® Waste<less™ jean is limited-edition and made exclusively for EKOCYCLE™. That’s the social movement founded by legendary musician and producer will.i.am in partnership with Coca-Cola. The goal of this jean and EKOCYCLE™ is to change the way we think about recycling choices and waste.
Each 501® Waste<Less™ jean is made with 29% post-consumer recycled content, using an average of eight recycled plastic bottles. This year, you might be wearing one of the plastic bottles you drank from – and recycled – last year.
Levi Strauss isn’t the first clothing manufacturer to create a new product line from recycled plastic. In 1993, Patagonia became the first outdoor clothing manufacturer to create fleece made from post consumer recycled plastic soda bottles, and the company’s support of recycling via their manufacturing continues. According to Patagonia’s website, the company has saved some 86 million soda bottles from the trash heap over the past thirteen years.
Another apparel company who incorporates sustainability throughout their business model is Puma. InCycle is the company’s first 100 percent biodegradable or recyclable clothing, accessory, and footwear collection. Puma’s efforts towards creating InCycle recently earned them Cradle to Cradle Products Innovation Institute’s product certification.
For an update on the Cradle to Cradle progress, check out The Upcycle: Beyond Sustainability – Designing for Abundance, the new best selling book from pioneers William McDonough and Michael Braungart.
When it comes to plastic use and its impact on human health and the environment, the various statistics are nothing short of disturbing: plastic takes up to 1000 years to degrade in a landfill; 92 percent of Americans age six or older test positive for BPA; Americans use 2,500,000 plastic bottles every hour.
Check out this video, which features will.i.am, along with Levi’s® James “JC” Curleigh and Jonathan Kirby.
Read more at the original post at http://www.triplepundit.com/2013/05/levi-strauss-creates-sustainable-jeans/
According to new research released this week by the World Federation of Advertisers, some 83% of marketers believe brands should have a “purpose”, but many shoppers have moved ahead of the industry in this area. Some 56% of industry insiders thought consumers would prefer brands that supported “good causes at the same time as making money”, but Edelman’s consumer research pegged the actual total at 76%.
These figures stood at 40% and 47% respectively with regard to how many people bought caused-backing products at least once a month.
More broadly, only 38% of marketers had witnessed “consumer scepticism” when trying to position their products around a “purpose”, with shoppers in Europe, somewhat surprisingly, the least cynical.
The trade body polled 149 marketers from 58 firms controlling $70bn in adspend. It then compared the results with a global poll of 8,000 shoppers conducted by Edelman, the PR network. The study was presented at the WFA’s Global Marketer Week, and features insights from organisations like Anheuser-Busch Inbev, the brewer, and Johnson & Johnson, the healthcare giant.
Fully 80% of the professionals polled agreed chief executives should help and be involved in shaping a purpose, a reading which stood at 74% for chief marketing officers, 64% for corporate communications and 53% for all staff.
While 49% of this panel agreed their brands had a purpose, only 38% felt it was communicated well. More positively, a 93% majority said the impact of purpose on reputation could be measured, as did 91% for consumer engagement.
Upon being asked to name the company which has best embraced purpose, Unilever, the FMCG firm, led the charts on 23%, buoyed by its goal to double sales and halve its environmental footprint by 2020.
Procter & Gamble, a rival to Unilever, took second on 15%, and has embraced the corporate mantra of “touching and improving” consumers. Soft drinks titan Coca-Cola was third on 14%.
“The social and environmental policies of the world’s ten biggest food and beverage giants are not fit for modern purpose and need a major shake-up.”
– Oxfam Statement
Oxfam released results today ranking the world’s Top Ten food and beverage companies on responsible brand behaviors – evaluating their performance on key measures such as land and water use, response to climate change, treatment of workers, farmers and women, and transparency.
According to the Oxfam report – Behind The Brands – “all of the big ten companies have acknowledged the need for a more just food system and have made commitments to that end. But the Behind the Brands scorecard shows these very same companies are currently failing to take the necessary steps in their policies to ensure the well-being of those working to produce their products. Instead they continue to profit from a broken system they should be helping to fix.”
Among several areas the Behind The Brands study identifies as serious improvement:
None of the big ten companies have policies to protect local communities from land and water grabs along their supply chains.
Companies are not taking significant steps to reduce agricultural greenhouse gas emissions responsible for the climate change affect their supplier farmers.
Most do not provide small-scale farmers with equal access to their supply changes or ensure they are receiving a fair price for their goods
Companies are overly secretive about their agricultural supply chains, making it difficult to verify and monitor sustainability goals and claims.
Only few efforts are in place to address the exploitation of female small-scale producers and farmers in their supply chains.
“None of the 10 biggest food and beverage companies are moving fast enough to turn around a 100-year legacy of relying on cheap land and labor to make mass products at huge profits, with unacceptably high social and environmental costs,” said Jeremy Hobbs, executive director for Oxfam International, in a statement. “No company emerges with a good overall score. Across the board, all 10 companies need to do much more.”
Honda and Acura are offering a pioneering new partnership with SolarCity that lets Honda customers install solar systems at home for little or no upfront cost.
Through a partnership with SolarCity, a residential and commercial installer, Honda and Acura will offer their customer’s home solar systems at little or no upfront cost, the companies said on Tuesday. The automaker will also offer its dealers preferential terms to lease or buy systems from SolarCity on a case-by-case basis, executives said.
The deal announced Tuesday by both companies will allow Honda will provide financing for $65 million worth of installations and will help the automaker promote its environmental aims and earn a modest return. It could also open the door for more corporate investment in solar leasing companies, which has largely been limited to a small cluster of banks to provide capital for their projects.
Honda approached SolarCity more than a year ago when it was looking for a partner to provide solar installation services for its hybrid and electric vehicle customers, said Ryan Harty, American Honda’s assistant manager for environmental business development. The company then decided to expand to all its customers — a group it is defining “very, very broadly,” Mr. Harty said, to include not just car owners but also those who have explored its Web sites. The offer will be available in 14 states: Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Maryland, Massachusetts, New York, New Jersey, Oregon, Pennsylvania, Texas and Washington, and the District of Columbia.
And SolarCity, one of the few clean-tech start-ups to find a market for an initial public offering of its stock last year, will potentially gain access to tens of millions of new customers through Honda’s vast lists of current and previous owners.
“When we partner with financial institutions, they aren’t promoting us to their customers, they’re essentially just providing us with capital,” said Lyndon R. Rive, SolarCity’s chief executive. But with Honda, he said, the company is gaining, “access to a broader customer base, and a customer base that is conscious of the environment.”
“I don’t think that by finding Honda buyers you’ve homed in on the perfect solar customer, but there’s enough overlapping between the demographics that you’re better off than the general population,” said Shayle Kann, vice president at GTM Research, adding that car buyers were more likely to own their homes and have the income and credit history to qualify for solar leasing.
While the American solar industry in general has been struggling in the face of declining government subsidies, overcapacity in production and a glut of inexpensive Chinese panels, interest and investment in solar leasing, or third-party ownership, has continued to grow. According to a recent report from GTM Research, a renewable energy consulting firm that is a unit of Greentech Media, third-party ownership accounts for more than 70 percent of all residential installations in developed markets like Arizona, California and Colorado and has generated at least $3.4 billion in private investment since 2008.
SolarCity and a rival, Sunrun, were among pioneers of the approach, but players like Clean Power Finance and Vivint, a home security company owned by the Blackstone Group, are also gaining momentum.
In a typical arrangement, a company provides a system at little or no cost in exchange for a long-term contract in which the customer pays a fixed fee for the electricity generated, set at less than the customer would pay for power from the local utility. The solar price often rises over the life of the agreement, which can last 20 years.
The two companies say they hope the joint venture leads to projects that integrate solar power and electric vehicle recharging for its customers.
The program will give Honda and Acura customers an extra $400 discount on top of SolarCity’s normal promotions, which they can use to sweeten the terms of the solar contract, like eliminating the escalation of the monthly payment. Honda projects the fund can finance as many as 3,000 systems on homes and 20 for its dealers. If the program catches on, Honda plans to expand it. Executives said they saw more immediate promise in cutting carbon emissions through solar power than the electric vehicles it would sell.
Abridged from an article in The New York Times. Link to the original below.
A new study by BBMG, GlobeScan and SustainAbility finds that a majority of consumers across six international markets are seeking to reconcile their desire for shopping and style with responsibility to the environment and society through their purchases. According to the report, Rethinking Consumption: Consumers and the Future of Sustainability, nearly two-thirds of consumers globally equate shopping with happiness (63%) while also feeling a sense of responsibility for society (65%). The study draws from an online survey of 6,224 consumers across Brazil, China, India, Germany, the United Kingdom and the United States conducted in September and October 2012.
In exploring the intersection of consumer values, motivations and behaviors, the study identifies four consumer segments on the sustainability spectrum: highly committed Advocates(14%); style and social status-seeking Aspirationals (37%); price and performance-minded Practicals(34%) and less engaged Indifferents (16%).
Aspirationals represent hundreds of millions of consumers globally, and are the largest consumer segment in Brazil, China and India. More than any other segment, Aspirationals care about style (65%) and social status (52%), and equate shopping with happiness (70%). Yet, they are also among the most likely to believe that we need to “consume a lot less to improve the environment for future generations” (73%), and feel “a sense of responsibility to society” (73%).
“Aspirationals are looking for brands to provide solutions that both improve their lives and serve society as a whole,” said Pam Alabaster, Senior Vice President Corporate Communications, Sustainable Development & Public Affairs at L’Oréal USA, a sponsor of the study. “Understanding this dynamic tension provides the greatest opportunity for companies to create positive impact through consumers’ purchasing decisions and social actions.”
“Aspirationals represent the persuadable mainstream on the path to more sustainable behavior. They love to shop, are influenced by brands, yet aspire to be sustainable in their purchases and actions,” said Raphael Bemporad, Co-Founder of brand and innovation consultancy BBMG. “This consumer segment represents a significant opportunity for forward-looking brands to unite consumerism with social and environmental values.”
“The ideals, influence and size of the Aspirationals segment — particularly in developing markets — is what makes them so compelling for sustainable brands,” said Mark Lee, Executive Director at think tank and strategic advisory firm SustainAbility. “But simply helping people to consume more products that are incrementally ‘better’ is not necessarily the answer. Leading companies will seek to meet the needs of the Aspirationals beyond just products by delivering value through services, sharing, expertise and purposeful engagement.”
Eric Whan, Sustainability Director at GlobeScan, added: “In our fifteen years of market analysis, we’ve never seen an opportunity like this. The Aspirationals will chart the future of sustainable consumption, as long as their favorite brands offer them what they want.”
Developed by BBMG, GlobeScan and SustainAbility, The Regeneration Consumer Study is an in-depth online survey of consumer attitudes, motivations and behaviors relating to sustainable consumption. The study is part of the The Regeneration Roadmap,a collaborative and multi-faceted thought leadership initiative designed to engage the private sector in advancing sustainable development by improving sustainability strategy, increasing credibility and delivering results at greater speed and scale.
According to the newly released TheRegeneration Consumer Study, two-thirds of consumers in six countries say that “as a society, we need to consume a lot less to improve the environment for future generations” and that they feel “a sense of responsibility to purchase products that are good for the environment and society”.
In a statement, Mark Lee, Executive Director at SustainAbility said, “Our economy and natural environment are facing unprecedented stresses as scarce resources are stretched to meet growing needs. Through the Regeneration Consumer Study, we are revealing how consumer attitudes, behaviors and collaboration can help enterprising brands as they work to innovate smarter, safer, cleaner and greener solutions.”
The findings are based on an online survey of 6,224 consumers across Brazil, China, India, Germany, the United Kingdom and the United States conducted in September and October 2012.
Among other key insights in the global consumer research:
Nine in ten consumers believe it is extremely or very important for companies to address safe drinking water.
67% are interested in sharing their ideas with companies to help them develop better products or create new solutions.
75% of consumers globally agree they would purchase products that are environmentally or socially responsible if they didn’t cost more.
The study also draws five key implications for marketers to connect with these consumers who are demonstrating strong desire for responsible brands. In summary, they are:
Congratulations to the drivers behind the research and their sponsors. Learn about the developers and their sponsors below:
Developed by BBMG, GlobeScan and SustainAbility, The Regeneration Consumer Study is an in-depth online survey of consumer attitudes, motivations and behaviors relating to sustainable consumption among 6,224 respondents across six major international markets (Brazil, China, Germany, India, the United Kingdom and the United States) conducted in September and October 2012. Drawn from consumer research panels, global data are comparable to having a margin of error of +/- 1.3 percent. Analysis of country-level data reflects a margin of error of +/- 3.1 percent.
The study is part of the The Regeneration Roadmap, a collaborative and multi-faceted thought leadership initiative designed to engage the private sector in advancing sustainable development by improving sustainability strategy, increasing credibility and delivering results at greater speed and scale.
Cone Communications has released the results of its new Corporate Social Return Trend Tracker showing that 86% of consumers are more likely to trust a company that reports its corporate social responsibility results.
In a statement, Cone Communications’ Executive Vice President Craig Bida said, “Stakeholders play more powerful roles than ever in a brand’s overall success or failure and they must be consistently engaged in a company’s CSR efforts and results from the outset. They need to feel a benefit. This mutual return will become the new table stakes for differentiating CSR efforts.”
Some of the other interesting insights from the research include:
84 percent of Americans hold companies accountable for producing and communicating the results of CSR commitments by going beyond the mission to robustly communicate progress against well-defined purpose.
82 percent say they are more likely to purchase a product that clearly demonstrates the results of the company’s CSR initiatives than one that does not.
84 percent recognize that for a company to make societal impact, it must also realize a business return, such as increased revenue or reduced costs
Importantly, the study also underscores continued consumer confusion regarding CSR and where to find the results and reports on CSR efforts. And documents how CSR efforts need to be communicated and more core to any company’s brand marketing efforts.
63 percent say they don’t know where to find information about a company’s CSR efforts and results
55 percent don’t understand the impact they are having when buying a product from a company that says it is socially responsible.
40 percent say they will not purchase a company’s products or services if CSR results are not communicated
“This shift in stakeholder expectations carries significant implications for companies engaged in CSR,” says Cone Communications’ Executive Vice President Jonathan Yohannan. “Purpose is no longer enough, and successful campaigns must demonstrate return for business, brand and society. ‘Proving purpose’ is the new mantra for effective CSR.” “Companies need to build customized output and outcome measurement components and identify projected stakeholder return at the outset of campaign development, and then track progress along the critical CSR pillars of business, brand and society,” adds Yohannan. “With the stakes so high, measurement can’t be an afterthought or add-on.”
Unilever and the Earth Institute have announced a new initiative to bring hand washing with soap – a lifesaving habit – to the Millennium Villages, a project that works with nearly 500,000 people in rural villages, across 10 countries in sub-Saharan Africa.
”The big issues the world is facing require new approaches, new business models and new partnerships. Responsible businesses must take a more active leadership role.” said Paul Polman, Unilever CEO, “The memo of understanding with the Earth Institute partnering Lifebuoy with the Millennium Villages Project is one such example where working together will enhance our expertise of addressing hygiene in deep rural Africa and enable us to develop more effective solutions to reduce child mortality.”
The partnership supports Unilever’s goal to deliver on one of its commitment under its Sustainable Living Plan – to help more than one billion people take action to improve their health and well-being. Over the past two years, Unilever has successfully changed the hand washing behaviour of 50 million people in Africa and South-Asia, through its leading soap brand Lifebuoy and partnerships with Population Services International (PSI) and UNICEF established through the Unilever Foundation.
“It is unacceptable that two million children die every year from infectious diseases when we have easy and cheap lifesaving solutions, such as hand washing with soap, readily available. Innovative partnerships between governments, civil society and business have a critical role to play in promoting better hygiene practices and in tackling the world’s deadliest diseases.” said Polman.
Millions around the world are asked to pledge on www.facebook.com/lifebuoy. With every pledge, Lifebuoy and its partners will help more children receive hygiene education through their dedicated handwashing behavior change programs.
In a statement, Jeffrey Sachs, Director of the Earth Institute at Columbia University said: “Diarrhoea and pneumonia are the two leading causes of under-5 deaths, accounting for around 30% of children’s deaths globally – more than two million lives lost each year. More than 80% of these deaths occur in sub-Saharan Africa and South Asia. Addressing these challenges through improved hygiene is a vital and effective step towards saving lives and achieving the global Millennium Development Goal to reduce the child mortality rate by two-thirds by 2015.”
Consistent evidence shows that hand washing with soap at critical times – before eating or preparing food and after using the toilet – can reduce diarrhoeal risk by 45% and acute respiratory infections such as pneumonia, by 23%. Studies also reveal that primary school absenteeism due to diarrhoea and respiratory infections dropped between 20% and 50% as a result of better hand washing practices .
“We are looking forward to working with Unilever to ensure that straightforward solutions like hand washing reach the people that need them the most,” said Sachs who leads the Millennium Villages Project. “The poor need solutions that are affordable, products that are highly effective, and information that is practical and accessible. The benefits can be enormous.”
The partnership will be focusing on villages in Ethiopia, Ghana, Kenya, Malawi, Mali, Nigeria, Rwanda, Senegal, Tanzania and Uganda, and aims to: decrease incidence in diarrhoeal diseases, promote gender equality, increase school attendance, enhance productivity and well-being for all community members. The partnership will also focus on governments. Governments should integrate hand washing with soap into national health and education policy frameworks. Governments and aid donors should ensure adequate finance for hygiene facilities and water availabilities. Business must act too, ensuring their products are even more affordable, and varied so that handwashing with soap is done everywhere and by all. Public-private partnerships have role to play and can help governments harness the power of business for the benefit of their population’s health.
Looking to the UN’s post-2015 agenda, Polman said, “It will be important to ensure that hygiene takes its place alongside targets on water and sanitation. This partnership with Millennium Villages Project will provide further evidence to demonstrate to policymakers how hygiene public policy can be improved, and help bring to an end the scandal of children dying from preventable diseases.
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Eric Block On Responsible Branding 
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