Page 54 – Sustainability Academy

Climate Change is one of the biggest challenges for the global community and greenhouse gas emissions (Greenhouse Gas-GHG) in the atmosphere are considered the main factor that cause. Apart from the international commitments (Rio, Kyoto Protocol) and national efforts to reduce emissions, organizations and businesses can also have an active role in tackling climate change. This is no what citizens / consumers who attach great importance to this environmental aspect require from companies and expect concrete results proving so. The measurement of carbon footprint is now common practice for many organizations worldwide, and is usually accompanied by a specific strategy on Climate Change.

In any case it is considered an environmental claim, meaning that companies communicate to consumers a message of protecting the environment, however it is more than this. Several models for calculating carbon footprint require companies to develop plans to reduce the footprint of products over time. These actions may relate to changes in energy consumption, use of new environmental-friendly technology, changes in product packaging, use of raw materials with less transportation needs (emphasis on local suppliers), thus result in the long-term reduction of carbon footprint and therefore beneficial for the environment. Carbon footprint and the overall Carbon Strategy are not just marketing, but also provide substantial benefits to society, and many companies have begun to realize the importance of this interaction with consumers.

For more information visit our consulting services for LCA and Verification or GHG Measurement and Reduction

Clean technology has emerged as an umbrella term encompassing the investment asset class, technology, and business sectors which include clean energy, environmental, and sustainable or green, products and services. Clean technologies are known to improve the lives of people in both developing and developed countries, and therefore investments can render a nation competitive, offering added value to its citizens.

The World Clean Technology Summit will bring together world leaders in renewable energy, exhibitors, investors, scientists and clean technology providers from around the world to engage, interact with each other, exchange business contacts, forge partnerships, and pave a way forward for a sustainable future.

The Following are objectives for the World Clean Technology Summit:

Create a shared understanding of the role governments, private sector, non-Profit, academic and the media play in promoting clean technologies to achieve a sustainable future for all
Provide a platform for companies, investors, Governments, foundations, academicians and civil society organizations to share the efforts they are undertaking to promote clean technologies and to publicize new commitments to action
Inspire new forms of public-private, private-private partnerships, public policy measures, and associated business and development opportunities to overcome environment and development challenges at the country and international levels.

Every year, Pilot International continues to provide a Global Platform for Advancement of Innovations and Clean Technology for a Sustainable World.
The growth and success of our events is testament to Pilot Internationals’ determination to provide a global platform for effective dialogue on renewable energy, clean technology and environmental innovations, as well as to achieve 3 of the millennium development goals, such as, the DG3: Promoting Gender Equality& Women Empowerment, the MDG7: Ensuring Environmental Sustainability and the MDG8: Developing A Global Partnership For Development.

For more information you can visit www.pilotinternationalconferences.com

The current global economic crisis has had devastating effects on industries, societies and whole nations. The development gains of the past decades for which countries and their people struggled, were scaled down due to the economic downturn. With fewer resources available to confront the development threats and challenges, sustainable development is clearly at risk. Economic, social and ecological balances are all necessary to address various development deficits and inequalities facing all regions.

More than 14 million people lost their jobs in the States due to the crisis, and millions more saw their income being decreased, thus experiencing insecurity, with more sensitive sectors like tourism, IT and construction being particularly vulnerable. At the same time, nations seeking to strengthen their economies and revive productivity, make high investments on stimulus packages. However, not all countries have the fiscal space to implement countercyclical measures due to large existing budget deficits. The time has come to restore stability and sustainability in the economic and social order of the world.

The economic crisis can be seen as an opportunity to move from individual country responses to a more coordinated and integrated regional response. Developing the foundations for social protection needs to be seen by countries as an economic investment rather than a social cost. “Green fiscal stimulus packages” have seen a boost to their demand, as sustainable development is known to be cost effective. However, the mere 12% share of the US “Green fiscal stimulus packages”, preceded with the equivalent UK 11% share and the 64% share for the 25 EU countries (HSBC, 2009), shows there is still room for improvement.

Climate change is still considered a major threat to sustainable development. The challenge that needs to be met is to reduce GHG, while maintaining the economic growth which is necessary for development. This climate friendly economic development can be achieved through investment in sustainability –or else green- strategies. The shift of the individual level consumption patterns needs to be followed by a governmental strategy shift, in order for sustainable growth to spread, grow roots and lead countries to development. This way, countries will not only battle the current crisis, but will become crisis-resistant in time, while ensuring future growth.

Source: HSBC (2009). Building a Green Recovery. May 2009

According to the MIT Sloan Management Review Report corporate sustainability programs grew in 2011. Two thirds of the executives surveyed have responded that CSR has been part of their strategic agenda and is more likely to remain in the preceding years. Another issue being raised is also the necessity of CSR in order to increase business competitiveness in the dynamic business environment. However, although 70% of those surveyed realize the aforementioned importance of CSR strategies in the corporate agenda, only 24% have embraced such long term strategies and a 31% has started to realize the sustainability business case but have not yet integrated it in the organizational culture.

A further interesting finding of the study is the nature of corporate motivators to embrace sustainable business strategies: Consumer preference of the offered product or service seems to be to the most highly appreciated factor, with political pressure, resource scarcity/price volatility, competitors’ sustainability programs and stricter requirements from customers along value chain following.

And while businesses need to make a decision on establishing CSR strategies, it is also important that they understand the augmented value such strategies would offer. Apart from increased, businesses can gain a great competitive advantage, develop an ideal working environment and achieve high levels of risk and reputation management. Organizations therefore face a great challenge, now more than ever: Embrace Sustainability in their Corporate Strategy and form a solid sustainable business case.

Sustainability issues are at the forefront of corporate agendas across the world. Investors, board members and consumers are all curious as to what practices companies are using to remain sustainable.

“Twenty years ago, there were very few businesses that even knew what sustainability was,” says Bill Ford, executive chairman at Ford Motor Company told The Guardian. “If they did, they were pretty much against it. Today, you’d be hard-pressed to find a business that doesn’t understand the importance of it.”

A new survey, released by Accenture and the United Nations Global Compact, showed that 93% of CEOs realize that sustainability issues are important to the future success of the companies that they lead. Additionally. 81% of CEOs surveyed believe that sustainability issues are fully embedded into their companies’ strategy and operations, with many moving focus to their supply chains.

Are these companies really implementing processes in their everyday practices?

John Elkington, founder of SustainAbility and Volans, explained to The Guardian that while CEOs have appointed CSOs and complete annual reports, they are not looking at sustainability as a transformative agenda.

Where does your company stand on this? Do you go beyond annual reports?

Traditional risk management has extended to encompass the risks arising from climate change. What about the potential effect on production and business operations, regulatory and litigation risks and reputation risks?

Across the world, companies are addressing climate change utilizing a cross between traditional risk management and corporate sustainability efforts.

Climate change worries corporate decision makers, investors and insurers. How will the continually changing climate affect your company? Will there be a disruption to your business? Will you be impacted financially?

Investors are paying more attention to these issues more than ever. In a Ceres report, CEO of the California Public Employees’ Retirement System, Anne Stausboll wrote:

In light of our long-term liabilities, we need to understand the critical risks and opportunities faced by the companies in our portfolio.

Today, that includes the serious risks — financial, physical, and reputational — associated with issues such as climate change, natural resource scarcity, supply chain pressures and other global sustainability challenges. Any company that ignores these risks, and fails to develop a long-term strategy to address them, is diminishing its competitiveness in the 21st century. At the same time, there are enormous opportunities for businesses that fully embrace sustainability.

Ceres has outlined 20 key expectations that investors have in today’s business world that include the areas of governance, stakeholder engagement, disclosure and performance.These are meant to be utilized at guidelines.

Once your company has taken to its investors, a report by Marsh recommends that companies assess their exposure tat the board level as well, “so that directors can be aware of where climate change-related risks will appear on the list of the company’s biggest risks.”

There is still a long way to go in developing processes for managing climate risk. What approaches are your companies taking?

Twitter hit 500 million member in February of 2012 and some of the users of this micro-blogging service are corporate executives.

According to Susan McPherson, senior vice president with Fenton, a public-interest communications and CSR consultancy, Twitter is well suited for those in the CSR and the sustainability arenas.

“The mantra of corporate social responsibility is transparency and open communications,” McPherson told The Guardian, “and social media channels like Twitter can lend credibility to these communications.”

CSR practitioners are using Twitter to network with their peers, promote their peers, remain up-to-date on news and trends and connect with stakeholders. Our company utilizes this medium to communicate trends in the industry as well as to disseminate information regarding our training programs.

While it’s hard to measure the value of social medial on sustainable business, it keeps consumers informed and involved with the sustainable companies they support. Utilize this forum to connect with thought leaders to expand your knowledge base or provide your consumers with up-to-date information.

Is your company’s sustainability officers on Twitter? Do you engage about sustainability on Twitter?

We do. Follow us : @CSE_Network

In today’s business world, being green is a necessity. Shareholders, investors, consumers and company employees all want to know how your organization is approaching sustainability.

Whether companies are successful at their corporate sustainability initiatives are another story. The Huffington Post’s Mark Tercek evaluated successful corporations and found that they have similar plans for success.

The Chief Sustainability Officer: These inspired leaders are paving the way as key players for the development of solutions that benefit nature and business.
These CSOs need to have a strong understanding of a company’s core operations, possess a commitment to the environment and foster strong relationships with allies. Tercek writes “a great CSO builds a true culture of sustainability across every aspect of the business, embedding environmental thinking into employees’ goals, measures and incentives.”
The Eco-Advantage Mindset: When a CSO works alongside a stellar CEO who shares the commitment to making sustainability a top priority, good things happen. As a team, they take a long-range view of time frames and payoffs when they evaluate their decisions. Together, their actions remain transparent to stakeholders and the general public.
Full Integration: Strong sustainability leaders have the ability to integrate nature into core business strategies because they recognize the value of nature. Investing in long-term resources will ensure a solid position in the future.
Resolution: In an ever-evolving field, there is going to be criticism. Strong sustainability leaders realize that perfect outcomes are not in the cards. Just because there are setbacks, doesn’t mean that these sustainability chiefs are going to step back from these long-term plans.

ChiefExecutive.net also brings to light that CSOs handle more than just being green. They also oversee sweatshops, workforce diversity, pay equity and community service. They serve as a resource to help overturn bad publicity.

As more companies continue to focus on sustainability and provide the public with sustainable reports, the public is still has doubts about this commitment.

According to the third annual Gibbs & Soell Sense & Sustainability Study, 21 percent of Americans believe that the majority of business are making an effort toward sustainable development.

Although this skepticism exists, 71 percent of consumers are interested in what companies are doing to to become sustainable and 75 percent believe that the media is more interested in reporting bad news.

The study looked into multiple areas, including the perceptions of a businesses’ commitment to sustainability; responsibility for sustainability initiatives; barriers to more businesses “going green;” perceptions of media coverage and content about companies “going green;” interest in learning about companies “going green;” and the impact and reach of medial coverage for related news stories.

Other key findings of the study include:

Thirty-four percent of executives indicated that there is no one person who is responsible for “going green.”
One out of five corporate leaders report that there is a team of individuals who have a job specifically dedicated to sustainability. This is an increase from 17 percent in 2011.
Sixty-nine percent of executive believe the media is more likely to report on bad news than good news when it comes to sustainability.
Newspapers dominate green news among mainstream media. A study from Cision Global Analysts found that 83 percent of coverage of comes from print and online versions of newspapers.

A new survey by Ernst & Young and GreenBiz Group has found that sustainability activities are being driven by financial considerations and other business objectives. Many companies are starting to realize that being green and being economic can go hand-in-hand. The report, Six Growing Trends in Sustainability, addresses this concept and more.

Trend 1: Sustainability is growing, but the tools are still developing: Since CorporateRegister.com began tracking corporate responsibility reports in 1992, the number has grown from 26 to 5,593 in 2010. As the demands for accountability have increased, customers, employers, investors, shareholders, policymakers, activists, analysts and suppliers each have taken an interest in a company’s sustainability matters.

The study found that 66% of the respondents of the survey reported an increase of inquiries over the past 12 months from shareholders and investors about sustainability-related issues. To meet this demand, companies are creating sustainability reports. The majority of these reports are basic spreadsheets that include life-cycle information.

Trend 2: The CFO’s Role in Sustainability is on the Rise: The report focused on three key areas in which the CFOs are playing an increased role: investor relations, external reporting and assurance, as well as operational controllership and financial risk management.

The survey found that 65% of respondents have CFOs who have taken on an increased role in sustainability. Cost reductions and managing risks are the two key drivers of their company’s sustainability agenda.

CFOs are also more involved because of the growing scrutiny of company sustainability issues by equity analysts. Eighty percent of companies identified new revenue opportunities as a means to drive sustainability initiatives. Sixty-six percent of those surveyed have seen an increase in requests for information regarding sustainability-related issues from their investors and shareholders.

80 percent said new revenue opportunities will be driving sustainability initiatives. And 66 percent have seen an increase in inquiries about sustainability-related issues in the past 12 months from investors and shareholders. We discussed this trend in an earlier blog post.

Trend 3: Employees emerge as a key stakeholder group for sustainability programs and reporting: An interesting finding of this survey is that employees ranked ahead of shareholders and investors as the second greatest stakeholder in driving a company’s sustainability initiatives. As companies continue to engage employees on sustainability, they achieve increased attraction and retention, improved operational efficiencies; strengthened customer relations, increased innovation and strengthened community ties.

It has also been found that companies that distribute their sustainability reports among their employees see this information shared with other external parties by their employee. Employees have a strong voice in the sustainability initiatives of their company employer.

Trend 4: Despite regulatory uncertainty, greenhouse gas reporting remains strong, with growing interest in water: Three-fourths of those surveyed have set greenhouse gas reduction goals, with 60% reporting them publicly. Companies look to release these numbers because of their reputation, their customer expectations and their efficiency goals.

The mining, oil and gas, chemicals, agriculture, power and utilities and food and beverage industries have an increased interest in reporting on water. Sixty-two percent of respondents to the survey publicly report water usage and one in six have their water footprints verified by an independent third-party.

Trend 5: Awareness is on the rise regarding the scarcity of business resources:
Companies are already recognizing resource constraints. Seventy-six percent of respondents anticipate that their core business objectives will be affected by natural resource shortages in the next three to five years. This availability is becoming a reporting requirement for companies, as many respondents have been asked about the sustainable sourcing and procurement of raw materials. Other concerns include conflict minerals, palm oil and rare earths.

Trend 6: Rankings and ratings matter to company executives: Respondents conveyed that filling out surveys and questionnaires regarding sustainability are important. Fifty-five percent of respondents believe these responses are a primary means of communicating with investors about their performance and initiatives in this area. These respondents believe that they can make a difference at their level and look upon the following ratings and ranking with high regard: The Dow Jones Sustainability Index, The Carbon Disclosure Project’s leadership rankings, Fortune magazine’s “Most Admired Companies” list, The 100 Best Corporate Citizen, named by Corporate Responsibility magazine and Newsweek magazine’s Green Rankings.

This joint survey was conducted in late 2011, with responses from 272 sustainability executives in 24 sectors who were employed by companies with annual revenues that exceeded $1 billion. According to Forbes, about 85 percent are based in the United States.

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