Requiring that companies report on their environmental, social and governance (ESG) initiatives leads to broad improvement in socially responsible management practices, according to new academic research.
A working paper based on the research - The Consequences of Mandatory Corporate Sustainability Reporting by Ioannis Ioannou of the London Business School and George Serafeim of the Harvard Business School – concludes “that sustainability reporting not only increases transparency but can also change corporate behavior.”
According to the researchers, “mandatory disclosure of sustainability information leads to a) an increase in the social responsibility of business leaders, b) a prioritization of sustainable development, c) a prioritization of employee training, d) more efficient supervision of managers by boards of directors, e) an increase in the implementation of ethical practices by firms, e) a decrease in bribery and corruption, and f) an improvement of managerial credibility within society.
Read more at Business Ethics.com
Friday, April 29, 2011
Anheuser-Busch in a Big Push for Water Efficiency
This week Anheuser-Busch InBev (AB InBev) released its 2010 Global Citizenship Report. The report is timely, considering the greater attention businesses devote to water, a resource that is most critical for AB InBev’s long-term success. With 114,000 people employed in 23 countries, the beer brewing and beverage giant has a huge impact on environmental and social issues around the world. The company also can influence kindred companies both large and small to take a second look at how their supply chain and operations affect the communities in which they conduct business.
AB InBev’s 57-page report covers topics across the sphere of corporate social responsibility (CSR). The company’s management and employees have tackled drought, water efficiency, responsible drinking (the original social responsibility), volunteerism, and workplace inclusion.
On average, one liter of beer production requires five liters of water. This is a huge issue for beverage producers, and not every market has equal access to clean water. AB InBev has gotten that ratio down to 4:1 and is aiming for 3.5 in 2012.
Read more at Triple Pundit.com
AB InBev’s 57-page report covers topics across the sphere of corporate social responsibility (CSR). The company’s management and employees have tackled drought, water efficiency, responsible drinking (the original social responsibility), volunteerism, and workplace inclusion.
On average, one liter of beer production requires five liters of water. This is a huge issue for beverage producers, and not every market has equal access to clean water. AB InBev has gotten that ratio down to 4:1 and is aiming for 3.5 in 2012.
Read more at Triple Pundit.com
Wednesday, April 27, 2011
Georgia Carpet Maker -- America's Greenest CEO
Think of a green businessman and Ray Anderson isn't likely to be the first to come to mind. He's not a fresh-out-of-business-school, Silicon Valley visionary — he's well over 70 years old, and his accent marks him as a lifelong Georgian. He doesn't make solar panels or wind turbines or cellulosic biofuel. His company, Interface, manufactures carpet tiles, which is about as ordinary as you can get.
But Fortune has described Anderson as 'America's greenest CEO,' and the title fits, because there is no one else in the corporate world who has so taken to heart the essential lessons of sustainability — and then put them into practice. 'From my experience, it's a false choice between the economy and ecology,' Anderson told me recently. 'We can have both — and we have to have both."
In 1994, after reading a book titled The Ecology of Commerce, Anderson charged his engineers with calculating the company's environmental footprint. He was shocked to learn that it took over one million pounds of raw materials each year to support the business. Since that time, Anderson has put Interface on the path to sustainability, ruthlessly pursuing efficiencies and increasing recycling. Anderson says, "Our products are the best they have ever been, and so are our people. People need a higher purpose to identify with, and this is the highest purpose of all."
Read more at TIME.com
But Fortune has described Anderson as 'America's greenest CEO,' and the title fits, because there is no one else in the corporate world who has so taken to heart the essential lessons of sustainability — and then put them into practice. 'From my experience, it's a false choice between the economy and ecology,' Anderson told me recently. 'We can have both — and we have to have both."
In 1994, after reading a book titled The Ecology of Commerce, Anderson charged his engineers with calculating the company's environmental footprint. He was shocked to learn that it took over one million pounds of raw materials each year to support the business. Since that time, Anderson has put Interface on the path to sustainability, ruthlessly pursuing efficiencies and increasing recycling. Anderson says, "Our products are the best they have ever been, and so are our people. People need a higher purpose to identify with, and this is the highest purpose of all."
Read more at TIME.com
Tuesday, April 26, 2011
Majority of European firms fail on carbon reporting
Less than half of Europe's top 300 firms are publishing full and verified carbon emission data, with French and Swiss companies ranking worst at greenhouse gas reporting, a study showed Tuesday.
British financial services company Aviva placed first in the rankings based on emissions and levels of disclosure and verification, while Polish mining company KGHM came in last, according to the non-profit Environmental Investment Organisation (EIO).
Swiss telecom operator Swisscom ranked first among non-financial companies while unsurprisingly utilities were overall the biggest emitters, accounting for nearly 46 of all climate-changing greenhouse gases.
The EIO compiled its Environmental Tracing Europe 300 Carbon Ranking index and plans to release further regional indexes and a global index in the coming months to provide tools for the investment community to tackle climate change." Read more
British financial services company Aviva placed first in the rankings based on emissions and levels of disclosure and verification, while Polish mining company KGHM came in last, according to the non-profit Environmental Investment Organisation (EIO).
Swiss telecom operator Swisscom ranked first among non-financial companies while unsurprisingly utilities were overall the biggest emitters, accounting for nearly 46 of all climate-changing greenhouse gases.
The EIO compiled its Environmental Tracing Europe 300 Carbon Ranking index and plans to release further regional indexes and a global index in the coming months to provide tools for the investment community to tackle climate change." Read more
Walmart's CSR Report Shows the Power, and Limits, of Efficiency
Arguably, Walmart has done more than any environmental group, politician, government regulator or Silicon Valley clean tech firm to nudge the U.S. economy towards sustainability in the last five years.
Walmart's 2011 Global Responsibility Report, published last week, makes clear that despite the recession and some recently rough going for the company -- lately its stock has lagged the S&P500 -- Walmart is pushing ahead towards its big goals: To generate no waste, to be 100 percent-powered by renewable energy and to sell lots more products that sustain people and the environment.
Yet a closer look at the report demonstrates that there are limits to what any company, even one as vast as Walmart, can do. Most of its environmental gains have come from doing what Walmart has always done very well -- driving efficiency in its stores and supply chain. When sustainable initiatives cost more money, as they sometimes do, progress has been halting.
Still, Walmart deserves at least two cheers, maybe two-and-half for its efforts, particularly in the current political climate.
Read more at GreenBiz.com
Walmart's 2011 Global Responsibility Report, published last week, makes clear that despite the recession and some recently rough going for the company -- lately its stock has lagged the S&P500 -- Walmart is pushing ahead towards its big goals: To generate no waste, to be 100 percent-powered by renewable energy and to sell lots more products that sustain people and the environment.
Yet a closer look at the report demonstrates that there are limits to what any company, even one as vast as Walmart, can do. Most of its environmental gains have come from doing what Walmart has always done very well -- driving efficiency in its stores and supply chain. When sustainable initiatives cost more money, as they sometimes do, progress has been halting.
Still, Walmart deserves at least two cheers, maybe two-and-half for its efforts, particularly in the current political climate.
Read more at GreenBiz.com
Thursday, April 21, 2011
Whole Foods Launches New Standards for Household Cleaning Products
Whole Foods announced last week that it has introduced the Whole Foods Market Eco-Scale, a color-coded rating system for all household cleaners in its stores.
The system is tiered, and products are based on the specific set of environmental standards each of them meet. Every product will now be evaluated for environmental impact, safety, efficacy, source, labeling and animal testing. Based on the product evaluation, it will be rated red, orange, yellow or green on the Eco-Scale. Certain ingredients are prohibited in order for a cleaning product to meet the specific standards for each level of the Eco-Scale rating system and, with that, all products that do not at least meet the orange tier will be removed from the shelf by Earth Day 2012.
Whole Foods hopes that the Eco-Scale system will allow customers to make informed choices and, at the same time, encourage producers to create better products.
Read more at Triple Pundit.com
The system is tiered, and products are based on the specific set of environmental standards each of them meet. Every product will now be evaluated for environmental impact, safety, efficacy, source, labeling and animal testing. Based on the product evaluation, it will be rated red, orange, yellow or green on the Eco-Scale. Certain ingredients are prohibited in order for a cleaning product to meet the specific standards for each level of the Eco-Scale rating system and, with that, all products that do not at least meet the orange tier will be removed from the shelf by Earth Day 2012.
Whole Foods hopes that the Eco-Scale system will allow customers to make informed choices and, at the same time, encourage producers to create better products.
Read more at Triple Pundit.com
Sunday, April 17, 2011
CalPERS commits $100 million to sustainable investment product
The California Public Employees’ Retirement System (CalPERS) has committed a total of $400 million to three emerging managers in the pension fund’s Manager Development Program for public equity investment. Continuing CalPERS' commitment to progressive investment management approaches, the plan earmarked $100 million each to Quotient, an employee-owned investment company for a new environmental, social and governance product.
CalPERS will receive an undisclosed equity stake in each of the new firms in exchange for working capital.
“These emerging managers will play an important role in our effort to nurture potential diverse major players in the financial markets,” said Joseph Dear, CalPERS Chief Investment Officer.
Read more at Finance GreenWatch
CalPERS will receive an undisclosed equity stake in each of the new firms in exchange for working capital.
“These emerging managers will play an important role in our effort to nurture potential diverse major players in the financial markets,” said Joseph Dear, CalPERS Chief Investment Officer.
Read more at Finance GreenWatch
Friday, April 1, 2011
$546bn investor group backs EPA to address greenhouse gases
A group of 44 international investors with $546bn in assets under management have written to the leaders of the US Senate urging them to back the Environmental Protection Agency on greenhouse gas regulations.
They warn the US risks falling behind other countries in the “new energy economy” as well as identifying risks for companies in their investment portfolios.
Signatories to the March 29 letter include US-based socially responsible investors such as Calvert Asset Management, Domini Social Investments, Christian Brothers Investment Services, Trillium Asset Management and Walden Asset Management.
Read more at Responsible Investor.com
They warn the US risks falling behind other countries in the “new energy economy” as well as identifying risks for companies in their investment portfolios.
Signatories to the March 29 letter include US-based socially responsible investors such as Calvert Asset Management, Domini Social Investments, Christian Brothers Investment Services, Trillium Asset Management and Walden Asset Management.
Read more at Responsible Investor.com
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