Page 32 – Sustainability Academy

Last week, over 300 representatives from business, government, and non-governmental organizations gathered at the European Business Summit in Brussels to discuss the Sustainable Development Goals. The main focus was on the role that businesses can play in bringing about positive societal impact while at the same time generating shared value.

An Opportunity for Sustainable & Inclusive Growth

The study that was conducted on behalf of CSR Europe demonstrates that although the SDGs have already been embraced by many business leaders, middle-management remains disconnected. While progress has been made, collaborative efforts must be reinforced in order to meet the UN 2030 Agenda. The SDGs not only provide a common language for the private and public sector to communicate, they also offer Europe an opportunity to foster sustainable and inclusive growth.

According to CSR Europe’s Director Stefan Crets, “Collaboration is fundamental to bring about the change that is needed. This is why CSR Europe recently launched the Sustainable Business Exchange, with the aim to empower companies to take action and co-create sustainable growth models”.

Implementing the SDG’s means supporting the prosperity of society, as well as ensuring the long-term viability of business. While the common denominator amongst the SDGs lies in the need for change, the opportunity to reach benefits from the SDGs rests with businesses and with their ability to go above and beyond to establish concrete multi-stakeholder partnerships and realize the goals effectively.

Getting involved in the Sustainable Business Exchange

CSR Europe will work through its network of more than 10,000 companies across Europe to promote business transformation through its Sustainable Business Exchange campaign. Companies themselves can get involved in the Sustainable Business Exchange in two different ways:

A learning network. This will help them embrace the circular economy, rethink the value chain, foster innovative partnerships and business models, as well as sustainable consumption and production.
An SDG Incubator. This will facilitate projects between companies, civil society and governments, to drive business contribution to the SDGs and tackle common challenges.

CSR Europe calls on all stakeholders, including the European Commission, to embrace the UN Sustainable Development Goals with practical action and opportunities for multi-stakeholder collaboration which is needed to spark Europe’s potential.

The 43^rd annual G7 Summit was held last week, on May 26 – 27, 2017. The location this year was Taormina in Sicily, Italy. The decision to hold the event in Sicily – and in particular in Taormina was to highlight the capacity to unite hope and hospitality in a single shared effort. The attendees of the 43rd summit included the leaders of the seven G7 member states as well as European Union representatives.

Improving the Conditions for Economic Growth Worldwide through Innovation & Sustainability

The mission of this year’s summit was ‘Building the Foundations of Renewed Trust’. The agenda was based on three fundamental pillars: 1) Citizen Safety; 2) Economic, Environmental and Social Sustainability and the Reduction of Inequalities; 3) Innovation, Skills and Labor in the Age of the next Production Revolution.

More specifically, the G7 Summit placed a great emphasis on how Innovation and Sustainability will be key drivers in shaping the future patterns of industrial development and in guiding the transition towards a digitized, innovative, low-emissions and more circular economy. The Business world should be concerned by the challenges the planet is confronted with, and should be fully committed to conciliating economic growth, job creation and environmental sustainability.

Climate Change & the future of the Paris Agreement

With respect to the crucial issue of climate change, the Group of Seven (G7) leaders have said in their final communique that they had failed to bridge differences with US President Donald Trump – and that the U.S.A. was unable to join other countries in committing to the Paris Agreement.

“The United States of America is in the process of reviewing its policies on climate change and on the Paris Agreement and thus is not in a position to join the consensus on these topics,” the communique reads. “Understanding this process, the heads of state and of government of Canada, France, Germany, Italy, Japan and the United Kingdom and the presidents of the European Council and of the European Commission reaffirm their strong commitment to swiftly implement the Paris Agreement,” it added.

G7 Nations Should Lead the Transition to a Low Carbon Economy

The G7 nations are responsible for 30 percent of coal-generated power worldwide – and as a result they should carry a large share of the responsibility for global greenhouse gas emissions. Talks about long-term growth are futile without taking into consideration the increasing scarcity of resources, which will push up prices and have an impact on the economy. The G7 nations ought to be a model for the necessary transition to a low-carbon economy.

To read the G7 Taormina Leaders’ Communiqué

The Centre for Sustainability and Excellence (CSE) is proud to announce its collaboration with the 28th annual SRI Conference on Sustainable, Responsible, Impact Investing (Nov. 1–3, 2017), at the Hotel del Coronado in San Diego, California.

CSE’s Certified CSR Practitioner Program, Advanced Edition 2017, is a pre-conference event, Oct. 31-Nov. 1, targeted to investment and sustainability managers alike. This challenging two-day training provides the latest practical tools and resources required to assess investment opportunities and to implement or upscale corporate sustainability. It provides the foundation knowledge in sustainability needed to generate value and create effective strategies. Executives from Fortune 500 companies such as PepsiCo, Pfizer, HSBC, Whole Foods, Under Armour and Lloyds Banking Group, the World Bank and European Investment Bank, local governments and academia have trusted CSE. They’ve participated in our advanced training to become Certified CSR Practitioners and earn a unique recognition in the Sustainability and CSR field. Click here to see the training agenda.

San Diego, SRI Conference, CSE, Sustainability, Sustainability Academy| — Responsible Investments

The SRI Conference offers attendees many opportunities to meet and learn from passionate, creative people from the responsible investment community in the United States and around the world. CSE is proud to offer our training to this community. Course topics include the principles of nature and business, the triple bottom-line approach to sustainability, incorporating the Sustainable Development Goals (SDG’s) for 2030, new sustainability trends and regulations, calculating SROI, stakeholder engagement, cause-related marketing, sustainability ratings (DJSI, CSRHub, ET Research Index), materiality, external assurance, case studies and simulation exercises.

The CSE training at the SRI Conference provides an opportunity to network with hundreds of financial professionals and industry practitioners representing client-facing licensed investment professionals; SRI mutual fund companies, asset managers, social research organizations, and other product/service providers; and investors including nonprofit organizations, community development banks, credit unions, faith based organizations, and other groups working on social change initiatives. According to the 2016 Report on U.S. Sustainable, Responsible, and Impact Investing Trends from US SIF, $8.72 trillion is under professional management — nearly one in every five dollars of AUM in the U.S.

CSE is offering a discount to conference participants, and registrants have the opportunity to use the conference hotel rates at the Hotel del Coronado. In the collaborative environment of the CSE training and The SRI Conference, investors, managers, corporate leaders and entrepreneurs can learn and engage, building knowledge, community and prosperity.

About the Centre for Sustainability and Excellence – CSE

Certified CSR Practitioner Program, Advanced Edition 2017, Oct. 31-Nov. 1 – registration

Click here for training agenda

About the SRI Conference, Nov. 1-3 – SRI Conference home

Conference registration

Hotel del Coronado reservations

For more information, academic or group rates, contact:

Rosalinda Sanquiche

[email protected]

Today, we live in a world where everything that surrounds us is driven and impacted by big data. As data gathering is becoming advanced, so is our ability to understand copious amounts at once. The corporate world can use Big Data in order to better understand the environmental impact of their operations and optimize their use of resources.

One “real world” problem that Big data analytics is being applied to right now is environment sustainability. Climate change is currently happening and there is nothing that can truly deny its existence. World leaders are discussing climate change at almost all major forums as the problem has moved to the forefront of world-scale issues. This is because it is affecting every country.

Human activity has proved to be the major cause of this change as CO2 emissions have heavily increased in recent years. While a major part of the climate change damage is irreversible, it is still possible to get some control over the global increase in temperature. Big data applications can be as relevant towards the cause of environment sustainability as they have been to other sectors, such as healthcare.

Understanding Environmental Impact and Resource Optimization through Big Data

Big data’s usefulness lies in its ability to help businesses understand and act on the environmental impacts that their operations are having. Big data’s potential impact on sustainability rests on its power to present a clear picture of the complete impact their operations are having.

An important application of Big Data is assessing environmental risks that the world faces right now or might possibly face in future. Another contribution of Big Data to the corporate world is its ability to help optimize usage of resources. Small improvements in efficiency due to resource optimization can result in large company savings.

Moving Towards Better Environmental Regulation

Big data can also be integrated with government policies to ensure better environmental regulation. Governments can now implement the latest technology and adopt real-time reporting of environmental quality data. This data can be used to monitor the emissions of large utility facilities.

Keeping track of how various business operations have an impact on the natural world gives way to new and innovative ways for bringing sustainability to an organization’s structure. Big Data is actively helping create a change, cut costs and boost long-term profitability in a resource-constrained world. That’s the real objective that every corporation should be aiming towards.

The Ecological Footprint is a measure that calculates human consumption and its demand on the planet’s ecosystems. According to reports from the GFN (Global Footprint Network) the world would need 1.7 Earths to support its current demands on renewable, natural resources.

Ecological Footprint & Biocapacity

The footprint takes into account how much in biological resources (such as forest land or fishing grounds) is necessary to fulfill the consumption of a country to absorb its waste. Along with an ecological footprint, the GFN also measures bio-capacity. This is the country’s ability to renew the resources demanded from its ecosystems. The smaller a country’s ecological footprint, and the bigger a country’s bio-capacity, the better it is.

Many countries have bio-capacities that are declining quickly. In some countries, this can be due to a combination of rapid population growth and deforestation. The United States for example, makes up 13% of the world’s total footprint and has the second-largest deficit in the world, after China. While the United States’ total footprint has been slightly decreasing since 2005, it is still twice the size of India’s and far greater than in other developed countries. Its consumption rate is still far from completely sustainable.

Economic Development

Economic development often means using more resources and increasing carbon emissions. For developing countries, an increase in ecological footprint may be necessary to strengthen their economies. The footprints in these countries may not be high to begin with, so small changes can cause a big jump. Also sustainable technology may not be as widely available in developing countries.

For developed countries, the opposite may be true. Because their rate of growth is decreasing and most already have large footprints, the fluctuations might not be so obvious. There are many different solutions, but the fastest way for a country to reduce its ecological footprint, according to GFN is to switch to greener energy sources.

On Friday, April 21, 2017, the United Kingdom had its first official coal-free day since the 19^th century. This marks an extremely historic milestone in Britain’s attempt to shift away from carbon fuels.

Coal-fired power generation is known to contribute heavily to climate change. Burning coal produces just as much carbon dioxide as it does to burn natural gas. We should attempt to reduce the world’s reliance on coal, by encouraging the use of renewable energy sources like solar and wind power instead.

UK’s Coal History

Historically, the U.K. was the first country in the world to use coal for electricity. Thomas Edison built the first ever coal-fired power station in Holburn, London back in 1882. This was considered absolutely groundbreaking for the time. Ever since that fateful day in 1882, coal burning has generally had nothing but success and expansion. That is, until the gradual industry decline of recent years. In 2015 the last deep coal mine closed, although open cast mining continued.

Before the complete coal shut down on April 21^st, the longest coal-free period in the U.K. had been in 2016 and lasted only 19 hours. The head of energy at Greenpeace UK, Hannah Martin remarked, “The first day without coal in Britain since the Industrial Revolution marks a watershed in the energy transition. A decade ago, a day without coal would have been unimaginable, and in 10 years’ time our energy system will have radically transformed again”.

Going Coal-Free in the UK by 2025

Fortunately, the government has announced that it aims to switch off all coal plants in the country by 2025 through the Paris Agreement. As a general advocate of renewable energy the UK has more offshore wind turbines installed than any other country in the world, as well as fields of solar panels with as much capacity at seven nuclear reactors.

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The head of climate and energy at WWF, Gareth Redmond King said that this change was a “Significant milestone in our march towards the green economic revolution.” Hopefully this dramatic, environmental step forward will be used as an example for other cities and countries around the world. We can only hope that in the future coal-free operations will become increasingly more common.

Today, we hear a lot about Chinese investments and money pouring into diverse markets and even Chinese loans being used to bail out struggling economies. The world is wondering “is China really that rich?” and the answer is yes, since the country has managed to accumulate huge financial assets in recent years.

While the sales and financial assets of Chinese companies have continued to grow for the past decade, more and more focus seems to be placed on their domestic and global performance in the realm of corporate social responsibility (CSR). Therefore, leading Chinese companies have started making fundamental changes in their strategic thinking, placing greater emphasis on becoming some of the world’s most reputable and pre-eminent brands.

..Looking to Expand Globally

Chinese business leaders have recognized the need to evolve, particularly in the area of CSR in order to become more competitive on a global scale. With the growing presence and influence of Chinese companies abroad, host countries increasingly expect Chinese companies to contribute positively to their sustainable development objectives and not to merely profit from their investments. The rise of more conscientious domestic and global consumers and investors, the prevalence of social media and the increasingly competitive global marketplace can all be viewed as key initial drivers for Chinese attention to CSR.

Becoming a Leader through CSR

The Chinese government has strongly supported the concept of CSR as a way for Chinese companies, mainly state owned, to drive harmonious integration into the broader global market. But, on the other hand, China wants to create its own CSR definition and guidelines that fit its unique economic situation and business culture.

Like many of their Western counterparts, Chinese companies faced a variety of societal and market pressures that ignited their CSR journey. However, perhaps more than their competitors, many Chinese companies view their futures as inextricably linked to their CSR performance and have begun viewing it as a potential competitive edge. China has learned that CSR, in the current economic and political landscape, will help the country to become a leader, not a follower.

At the UN Climate Conference in Paris, known as COP21, 196 countries joined together in the Paris Agreement, a universal pact that sets the world on a course to a zero-carbon, resilient, prosperous and fair future. While the Agreement is not enough by itself to solve the problem, it places us clearly on the path to a truly global solution.

The Agreement marks a new type of international cooperation where developed and developing countries are united in a common framework, and all are involved, engaged contributors. It reflects the growing recognition that climate action offers tremendous opportunities and benefits, and that climate impacts can be tackled effectively, with the unity of purpose that has brought us to this moment.

What is the Ambition Mechanism?

However, to fully understand why the Paris Agreement is such an achievement, we must unpack one of its core ingredients, what has become known as the ambition mechanism or cycles of action. This mechanism lays out a process to continue strengthening action in a regular and timely way every five years, starting before 2020. The Ambition Mechanism refers to an ongoing process to increase action by all countries and can be broken down into three main components:

Global Stocktake of implementation and collective progress every five years
Submission of updated nationally determined contributions (NDCs) from each country every five years informed by the Global Stocktake
Expectation of progression and highest possible ambition for each successive contribution.

What will happen after 2020?

After the 2018 assessment, the next moment for all countries to come back and assess implementation and collective progress will be in 2023, referred to in the Paris Agreement as the “Global Stocktake.” This Global Stocktake will then occur every five years and serve as the pivotal collective moment to assess implementation and progress towards achieving long-term Paris Agreement goals.

The Global Stocktake has broad scope and purpose—assessing mitigation action as well as adaptation, means of implementation (including finance, technology transfer and development, and capacity building), and other support. Assessments will be based on equity and informed by the best available science, including the latest Intergovernmental Panel on Climate Change reports. All Parties will be required to prepare and communicate new NDCs for mitigation, informed by the Global Stocktake outcomes.

The world has now embarked on a historic transformation. The regular and ongoing process to review and increase ambition across all elements of the Paris Agreement is what will ensure this is a historic, dynamic and durable outcome capable of driving the needed level of climate action.

The outcome of the U.S. presidential election seems to be the latest step in a longstanding global trend of increasing political and environmental uncertainty. As far as Sustainability is concerned, President Trump’s regulatory freeze that halted four rules designed to promote greater energy efficiency, appears to be just the first salvo in an ongoing plan to roll back environmental protections and slash environmental budgets.

As the economy becomes more sustainable and energy efficient, a new market for clean energy and sustainability jobs is created. This market is large, growing and intrinsically local. Even better, these jobs span across economic sectors, including renewable energy, energy efficiency and other green goods and services, like local and state government, transportation and corporations.

Key trends as sustainability jobs continue to grow

As sustainability jobs continue to grow across the US, there are several key trends that need to be taken into consideration. First of all, sustainability jobs represent a large and growing portion of the U.S. workforce across multiple sectors. Sustainability now collectively represents an estimated 4-4.5 million jobs in the U.S., spanning energy efficiency and renewable energy, to waste reduction and environmental education. Moreover, due to the on-site nature of many renewable and energy efficiency jobs, these jobs cannot be outsourced, and can pay above average wages. Lastly, it is a fact that clean energy and sustainability jobs are present in every state in America, providing 2.2 million jobs across the nation.

How can we continue this momentum?

Investments in clean energy and sustainability pay off in the long run and foster a stronger economy – that equals more jobs and a cleaner future. This is why businesses are increasing their investments in sustainability. All in all, Corporate America understands that prosperity and a low-carbon economy go hand-in-hand, and should continue to support investment in this area. America is transitioning to a clean energy future and we can’t afford to stand in its way!

by Michael Hines

Minimizing a company’s impact to society has long been considered to be at odds with maximizing stakeholder returns. Better informed customers, as well as liability averse investors are now requiring companies to do better. Companies are responding, and a bottom line benefit is emerging.

In the last 50 years sustainability has primarily been seen in Socially Responsible Investing (SRI), which avoids investment in companies with unethical or risky practices. While a positive development for society, this exclusionary practice has generally been associated with at best average investor returns.

Today corporate sustainability has evolved to where it is possible, even advantageous, to operate in a manner that is a win win for an organization, its partners and society. There is strong evidence that companies with their “Triple Bottom Line” – Environmental, Social and Governance (ESG) – ducks in a row are rewarded with a lower cost of capital and frequently outperform. These “best in class” companies are not only reducing their impact on others, but cutting waste and mitigating liabilities in their operations.

While a new concept for many, ESG is coming on strong. After nearly zero a decade ago, ESG related assets under management at the end of 2015 were over $21 trillion. Morningstar now has ESG sustainability ratings for funds. It’s both carrot and stick – recent financial crises have convinced regulators and investors that more information is needed from companies. And companies have recognized that being a good citizen is a point of positive product differentiation.

Much of the impact of ESG falls on the CFO’s desk. For the Social component – the S in ESG, companies that treat employees and suppliers fairly reap rewards of increased productivity plus less turnover and litigation.

Recent data breaches at companies like Target and Home Depot have shown that companies need to manage supply chain vulnerabilities that can threaten their sustainability. Companies like ThirdPartyTrust have emerged to address the issue as companies scramble to identify and manage this risk. For suppliers, demonstrating data security has become a necessary requirement to win contracts as well as a potential competitive advantage.

Strong corporate governance (the G in ESG) creates transparency and stability, encouraging investment.

Most early adopters are large multinationals, particular those in Europe with regulatory requirements from public exchanges. Companies such as Mitsubishi, Apple, and Cummins are providing ESG disclosure in an annual report like format. Goldman Sachs is a solid example of ESG reporting.

Standards for ESG measurement and reporting are evolving. Unlike standard GAAP financial principles with a well defined one way dissemination of information, ESG measurement is still both an art and a science. Communicating this sometimes hard to measure information is ideally a two way conversation with stakeholders. Just as GAAP represents a standardization of best practices over time, initiatives such as GRI and SASB aim for the same consistency and eventual auditability.

Driving change at an organization begins with measurement and communication of the relevant drivers. Sustainability Academy’s Certificate in ESG Performance for Investors and Sustainability Professionals provides useful knowledge about ESG reporting and the opportunities and challenges of this changing field.

What gets measured, gets managed. Markets and companies becoming more transparent will benefit both the environment and the economy.

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Michael Hines is an executive, consultant and entrepreneur. He is experienced in financial management, operational improvement, sustainability, and strategy. His work includes large and small companies, restructurings, startups and acquisitions.

An Opportunity for Sustainable & Inclusive Growth

Getting involved in the Sustainable Business Exchange

Improving the Conditions for Economic Growth Worldwide through Innovation & Sustainability

Climate Change & the future of the Paris Agreement

G7 Nations Should Lead the Transition to a Low Carbon Economy

Moving Towards Better Environmental Regulation

Ecological Footprint & Biocapacity

Economic Development

UK’s Coal History

Going Coal-Free in the UK by 2025

Key trends as sustainability jobs continue to grow

How can we continue this momentum?

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