LEADERSHIP -
H&M, Unilever, Nestlé and several other leading companies and investors have committed to reporting climate change through the Climate Change Reporting Framework or other comparable frameworks as a matter of fiduciary duty, whether or not required by current regulation.This represents an unprecedented collective commitment and a practical step capable of enabling positive change in economic and financial market activity at scale.
NEW METRICS -
Socially Responsible Investing (SRI) is a growing force in markets across the world. According to the US SIF Foundation, the responsible investing market in the US increased 486 percent while the broader US market of professionally managed assets grew 376 percent between 1995 and 2012. SRI investments are generally demand-side driven. More and more investors are looking for vehicles that are aligned with their values and priorities. In 2014, the total Assets Under Management (AUM) of the 1,278 signatories of the UN Principles for Responsible Investment (PRI), which include asset owners, investment managers and professional service partners, totaled $45 trillion. The SRI niche is not going away.
NEW METRICS -
More than $100 trillion in cumulative public and private spending, and 1,700 megatons of annual carbon dioxide (CO2) — a 40 percent reduction of urban passenger transport emissions — could be eliminated by 2050 if the world expands public transportation, walking and cycling in cities, according to a new report released by the University of California, Davis, and the Institute for Transportation and Development Policy (ITDP).In addition, an estimated 1.4 million early deaths could be avoided annually by 2050 if governments began requiring the strongest vehicle pollution controls and ultralow-sulfur fuels, according to a related analysis of these urban vehicle activity pathways by the International Council on Clean Transportation (ICCT) included in the report.
PRODUCT, SERVICE & DESIGN INNOVATION -
On Monday, Barclays reaffirmed its commitment to the Green Bonds sector by announcing it will invest a minimum of £1bn (US$1.64) by November 2015 to form part of its liquid asset buffer — one of the largest such investments by a bank."Every so often, market innovation and social imperatives come together to create something exciting that has the potential to make a real difference,” said Tushar Morzaria, Group Finance Director at Barclays. “The Green Bond sector is a fast-growing and powerful example of this synthesis."
THE NEXT ECONOMY -
Nearly 350 global institutional investors representing over $24 trillion in assets have called on government leaders to provide stable, reliable and economically meaningful carbon pricing that helps redirect investment commensurate with the scale of the climate change challenge, as well as develop plans to phase out subsidies for fossil fuels.
LEADERSHIP -
The University of California has announced it will allocate $1 billion over five years for direct investments in solutions to climate change.In addition, as part of UC President Janet Napolitano’s goal of bringing university operations to carbon neutrality by 2025, the 10-campus university system has signed agreements to secure substantial solar energy for the next 25 years.
SUPPLY CHAIN -
Institutional investors representing over half a trillion dollars in assets under management are calling on four major palm oil producers to adopt an immediate moratorium on deforestation and join the growing effort within the industry to establish traceable, deforestation-free palm oil supply chains.Led by Green Century Capital Management, investors called on Sime Darby Plantation, Kuala Lumpour Kepong Berhad, IOI Corporation Berhad, and Asian Agri to cease their efforts to weaken the existing threshold for no-deforestation.
ORGANIZATIONAL CHANGE -
By creating an enabling environment to establish novel internal-management systems, Solidaridad's Better Mill Initiative has equipped textile-factory managers and workers to improve working conditions and livelihoods, and reduce the environmental impact of the factories.
CHEMISTRY, MATERIALS & PACKAGING -
Last week, shareholder advocacy organization As You Sow (AYS), along with shareholders representing $11.8 billion worth of shares, presented a proposal to Mondelez International asking that the company make the switch to recyclable packaging.The resolution, which received 28.4 percent shareholder support, was presented at the giant food manufacturer’s annual meeting.The world’s largest snack food company, Mondelez International produces brands such as Oreo, Chips Ahoy!, Trident gum, and Philadelphia cream cheese. It comprises the global snack and food brands of the former Kraft Foods, from which it split in 2012.
PRODUCTS AND DESIGN -
Mowing the grass results in a lot of wasted biomass that could probably be put to better use. EcoMow is a small, self-fueled mower and grass pellet harvester that uses freshly cut grass as fuel and processes the biomass that it doesn’t use into a dried pellet form that can be used for other applications such as heating or power generation.
STAKEHOLDER TRENDS AND INSIGHTS -
The U.S. Securities and Exchange Commission (SEC) has not adequately addressed the climate disclosure deficiencies of publicly traded corporations, despite four-year-old formal guidance requiring companies to disclose material climate change risks, according to a report published Thursday by Ceres.
SUPPLY CHAIN -
This post first appeared on CSRwire's TalkBack blog on January 7, 2014.This is part two of the Creating Sustainable Apparel Value Chains series. Read part one: Transforming the Industry.
PRODUCT, SERVICE & DESIGN INNOVATION -
Umicore’s ranking as #1 on the 2013 Global 100 index of most sustainable companies was met with healthy skepticism by social justice advocates and environmental purists. The company’s history as Union Minière du Haut Katanga created devastation that Umicore will need to continue to remedy at a hefty price tag.
WASTE NOT -
Pulp Green Tech Holding (PGT), an R&D-focused company that owns Thai Gorilla Pulp Ltd., announced this week that it has successfully achieved a high-grade paper pulp made from empty palm fruit bunches, which are most often treated as waste material from the palm oil extraction process.The company estimates that roughly 95 percent, or 300 million tons, of this raw material is currently discarded per year.PGT says the process is highly cost-efficient and will enable investors, palm oil producers and paper pulp mills to achieve ROI of over 100% in the first year of operation, assuming the pulp is sold at a price of comparable non-wood materials.
SUPPLY CHAIN -
On Thursday at the US Conference of Mayors Meeting in Washington, D.C., Walmart US President and CEO Bill Simon announced a new fund for innovation in US manufacturing.Walmart and the Walmart Foundation will fund the five-year program and launch it in March in collaboration with the US Conference of Mayors. The fund will provide grants to innovators in the manufacturing sector and seeks to create new processes, ideas and jobs that support the country’s growing manufacturing footprint.
MARKETING AND COMMS -
As companies begin their 2014 planning, it is critical to have a firm understanding of the regulatory and sustainability trends that will impact core business. In a new publication series Let’s talk: sustainability, Ernst & Young’s Climate Change and Sustainability Services group highlights the top concerns facing companies in these areas in 2014.
MARKETING AND COMMS -
Mosaic, the first U.S. company to crowdsource investments for solar projects, is kicking off 2014 with a New Year’s Resolution campaign to “Put Solar on It.” The campaign invites anyone to pledge to put solar on a local home, school, place of worship, business or other property on PutSolarOnIt.com. Throughout 2014, Mosaic says it will provide people with the tools and network they need to make their pledge a reality.Oscar-nominated actor Mark Ruffalo is leading the campaign with his pledge to put solar on his children’s school, Stephen Gaynor Elementary, in Manhattan.
SUPPLY CHAIN -
In a year of extreme weather events, commodity price spikes and supply chain disasters, the latest data from CDP’s forests program reveals that the business community remains largely unaware of the deforestation risks in their own supply chains, threatening shareholder value.
LEADERSHIP -
Five major organizations active in the social investment market — the Big Lottery Fund, Citi, Big Society Capital, the City of London Corporation and the Cabinet Office — have come together to launch the Social Investment Research Council (SIRC), which aims to “generate powerful and practical insights for the benefit of social sector organizations and investors.”The research body will seek to maximize the benefits for socially motivated investors by enhancing knowledge within the sector, the founders say. During the organization’s first year of operation, it will focus on better understanding the investment products currently on the market and the kind of investors they seek to attract.
COLLABORATION -
Yesterday, in an attempt to stimulate dialogue and increase awareness around global water risk, CDP held its Global Water Forum 2013, “Investing in Water Security.”The impetus for the conversation, and in general CDP’s water program, is to catalyze sustainable global water stewardship.Water scarcity is a long-term business risk which has not, quite frankly, been gaining the same level of attention as other sustainability issues, such as energy efficiency and carbon reduction.However, unlike carbon, water is not a renewable resource.“I am very passionate that water is not carbon,” said Will Sarni, Director and Practice Leader, Enterprise Water Strategy at Deloitte Consulting LLP. “There is no replacement for water. Carbon is renewable. Water is not.”