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Social Impact
COVID Business TREND. Drive Ins.
Who joins in the renaissance of the drive in movie theater? Wal-Mart
Wal-Mart is patterning with Tribeca to offer certain films for free.
How many stores will see their lots turned into drive in theaters? 160
Entertainment Weekly | Walmart announces free drive-in movie screenings of Black Panther, LEGO Batman, E.T., and more
This Week: World’s Largest Corporate Sustainability Bond Issued
The corporation: Google
The sustainability bond:
- $10 billion debt offering
- issued $5.75 billion in sustainability bonds
- largest sustainability (green ) bond by any company ever
- proceeds support investment in both environmental and social initiatives
The project types that the bond will fund:
- energy efficiency
- such as by optimizing use of energy, water, and materials for efficient data centers
- clean energy & smart buildings
- LEED certification to move toward its longer-term vision to source carbon-free energy for operations 24 hours a day, 7 days a week
- clean transportation to limit CO2s
- Circular economy and design to promote reuse of finite materials
Americans Look to Business for Leadership During Pandemic?
Eater theorizes that Americans are looking for leadership and finding it in chain restaurants.
Why pray tell? Because these familiar, comfort food spots are requiring masks and there is no requirement from the federal government.
Which businesses are mandating masks? Starbucks, Panera Bread, Noodles & Company, Chipotle, and McDonald’s
What considerations are behind the mask decisions? Protecting their employees, protecting their guests, protecting their stakeholders
eater | In Trying Times, Americans Look to Our True Leaders — Chain Restaurants — for Guidance
BLM + COVID Governor Executive Order: Racism is a Public Health Crisis.
The Governor: Michigan Governor Gretchen Whitmer
The Executive Directive by Governor Whitmer makes 3 points:
- “racism is a public health crisis”
- coronavirus pandemic “has revealed, confirmed, and highlighted … preexisting inequities caused by systemic racism.”
- COVID has taken a disproportionate toll on Black Americans and other minority communities
The Governor also signed an Executive Order creating the “Black Leadership Advisory Council” with the goal of promoting economic growth and wealth equity for the Black community.
@washingtonpost on instagram
The Hill | Michigan governor signs order calling racism a public health crisis
Michigan.gov | Governor Whitmer Signs Executive Directive Recognizing and Addressing Racism as a Public Health Crisis, Creates the Black Leadership Advisory Council
COVID. Women Leaders Had Better Results for their Countries
What actions did female world leaders take that limited COVID in their countries?
- Women leaders issued stay at home orders earlier
- Look to New Zealand, Taiwan, Norway, & Germany
- Women led countries had fewer cases & fewer deaths
What time frame are we looking at for this data? The 1st quarter of the pandemic
Is it that women are more risk adverse? No, women are more willing to take economic risks but less willing to take risks with health
World Economic Forum | Women leaders are better at fighting the pandemic
Diversity +Inclusion: A Group Effort
What is A Group Effort: A self-funded project by actor Ryan Reynolds to create jobs that improve diversity & inclusion on his projects
Who will A Group Effort seek to promote: “Black, Indigenous, people of color and several other marginalized communities”
Go back to this self funded part, what does that mean? “new recruits will be paid and housed out of my [Ryan Reynolds] salary and will spend their days on set learning from professionals and getting real-life experience that they can then parlay into another job and another job and hopefully a career in the film industry”
COVID + Non Profit Fundraising + Online Platform + $10 Million Investment
Who has made a $10 Million, 3 year commitment to improve online fundraising for non-profits? Okta
What are the details?
- Will fund nonprofits working at the intersection of social good and technology
- Support accelerating the nonprofit sector’s move to the cloud
- Further the digital transformation: Enabling nonprofits to reach beneficiaries and stakeholders digitally at scale
- Protecting critical data and identities
- Growing and strengthening the ecosystems, coalitions and partnerships enabling nonprofit tech
- Changing the conversation among nonprofit leaders, funders and technology partners on how we enable nonprofits with tech
Why now? The pandemic made it clear that non-profits are the safety net during a crisis
OKTA’s list of partners in this effort
Nonprofits Should Be As Powerful As Their Missions: Our $10 Million Commitment
+1 City Offering Social Impact Bonds for Homelessness
The City: Madrid Spain
How would it work for procurement?
- procurement of service providers would be carried out through social outcomes contracting methodologies
- Madrid is only required to pay for the services if the objectives are achieved
What the social impact bond will fund: “improving the effectiveness of services for vulnerable people residing in temporary accommodation”
Will the City of Madrid have partners in its social impact bond? Yes, the European Investment Advisory Hub, funded by the European Commission and the European Investment Bank (EIB)
Texas Attorney General Opinion on Governance of Non-Profits in Housing
The Texas Attorney General will be answering these questions about the governance of non-profits created for housing authorities in Texas:
1. If the Board of Commissioners of the Housing Authority took no action to approve any amendments to the non-profit’s Articles, are the purported amendments void and of no effect? [Article IX of the non-profit’s Articles of Incorporation provides that amendments to the Articles are subject to the approval of the Housing Authority.]
2. May a non-profit created by a governmental body, and stated to be an instrumentality of such governmental body, act on its own to cease serving as an instrumentality of the governmental body?
3. May a governmental body that created a non-profit as an instrumentality of such governmental body approve that the non-profit cease serving as an instrumentality in order to become a private non-profit?
4. Are the assets of a non-profit, created by a governmental body to be an instrumentality of such governmental body, public or governmental assets?
5. If so, can the either the governmental body or instrumentality non-profit convert such public or governmental assets to private assets without complying with gifting prohibitions of the Texas Constitution?
6. Do the provisions of the PFC Act apply to a non-profit corporation created by a governmental agency as the governmental agency’s instrumentality pursuant to the Texas Non-Profit Corporation Act prior to the effective date of the PFC Act?
7. If so, do the provisions of the PFC Act invalidate the purported amendments to the non- profit’s Articles of Incorporation, filed after the date of enactment of the PFC Act, in the absence of formal Housing Authority approval by its Board of Commissioners? [Section 303.027(a) requires a sponsor resolution be submitted with the amendment. Section 303.027(b) requires the signature of the secretary or clerk of the sponsor to sign the amendment. Section 303.027(c)(5) of the PFC Act states that amendments to a PFC’s Articles of incorporation must contain “a statement that the amendment was authorized by the sponsor’s governing body.” Section 303.027(c)(6) provides that the amendment must also state “the date of the meeting at which the governing body approved the amendment.”]
8. If the amendments to the non-profit’s Articles are invalid, do the original Articles filed in 1994 remain and govern operation of this non-profit? [Those original Articles provide that members of the Housing Authority Board of Commissioners serve as members of the Board of Directors of the non-profit.]
9. If the amendments to the non-profit’s Articles are considered invalid, would the Housing Authority Commissioners automatically constitute the non-profit’s Board of Directors, once again, with full authority to govern the affairs of the non-profit?
10. Pursuant to Section 303.035(d), may the Housing Authority remove the non-Commissioner Directors of the non-profit?
11. Pursuant to Section 303.045, may the Housing Authority alter the non-profit’s structure and organization?
New Study: Booming Investment in Funds that Empower Women
Who conducted the study? Wharton School of the University of Pennsylvania
What did it find?
- 2019: $4.8 billion invested in “gender-lens-related” funds
- That’s more than double the $2.2 billion from 2018
- 59% growth in the number of funds that want to make a direct impact on women
Philadelphia Inquirer | Investing in funds that empower women boomed in 2019, Wharton study finds
How retail is adopting sustainability in the new normal.
The retailer: Ulta
What new sustainability measure has Ulta adopted? A new Conscious Beauty program certifying brands in five areas
What are the 5 areas of sustainability that are considered?
- clean ingredients
- cruelty-free testing
- vegan formulations
- sustainable packaging
- positive impact
Innovation. Fast Thinking. A Texas Company Thriving in COVID.
Who: Magna Imperio Systems Corps. (MI Systems).
What steps did MI Systems take during COVID that led to growth?
- Required masks company wide before any orders in Texas
- Used science to electrolyze salt water when sanitizer was in short supply
Any other things that helped MI Systems? According to 2 Texas professors, Texas and specifically Houston are well poised thanks to diverse people.
Corporate Partnership for a Sustainable Shopping Bag
Who is partnering to solve the plastic bag dilemma? Closed Loop Partners’ Center for the Circular Economy (the group partnering with Starbucks & McDonald’s for a sustainable coffee cup) & CVS Health, Target, and Walmart, and joined by Kroger and Walgreens
The investment: $15 Million
The project: “Beyond the Bag Initiative.”
COVID Corporate Action Sparks Change.org Petition
COSTCO stopped selling large sheet cakes that are purchased for large parties so as to not contribute to large group gatherings.
Now, meet Sheet-cake activist Kelly Stross
Yes, sheet cake activist. Let that sink in for a moment- sheet.cake.activist.
GrubStreet | Costco Still Doesn’t Trust America With Its Sheet Cakes
Where is the gap in corporate social responsibility?
A new paper published in Global Affairs says corporate social responsibility in forestry, mining and textiles is missing this element: long term change
Suggestions to address long term change: more information for consumers to make choices, more information to corporations on where investments are helpful, and more input from government
PHYS.ORG | Corporate social responsibility practices often lack ‘on the ground’ change
New Polling on Gender Issues
Who: PEW Research
79% say it is VERY IMPORTANT to have gender equality
69% of non feminists say it is very important to have gender equality
66% of non-feminist Republicans say it is very important to have gender equality
Gen Z & Millenial Consumers. Businesses That Align with Communities.
70%+ of the population are members of Gen Z, Millenials, and Gen X.
55% of GenZ and Millenials participated in Black Live Matters Protests or Awareness.
75% of Millenials have changed their spending habits because of environmental issues.
63% of GenZs will buy from a company that contributes to social causes.
Of businesses, these consumers want businesses to “use authenticity and transparency to prove they are community-minded and socially responsible.”
COVID. Anatomy of a Local Assistance Program.
Which local government adopted a local assistance program: Austin, Texas
What type of COVID assistance is it providing? $17 million rental assistance program
The Program’s name: Relief of Emergency Needs for Tenants (RENT) Program
History of the Relief of Emergency Needs for Tenants (RENT) Program:
- Launched version 1.0 in May
- 2/3 of applicants earn 30% of Austin’s median family income
- 11,000 applicants
- 1,681 households helped
- version 2.0 expects to launch in July and to help 2,000 households each month
KVUE | Austin announces $17M for emergency COVID-19 rent assistance
US Supreme Court Takeaways for Texas
Which U.S. Supreme Court ruling are we talking about? that employers cannot discriminate against gay or transgender persons under the Civil Rights Act of 1964
What are the potential economic and fiscal benefits of Texas passing a nondiscrimination act in employment, housing and public places?
- Contributes to attracting and retaining high-growth industries conducive to long-term economic growth
- Increasingly necessary for an active tourism market
- By 2025, a total increase in business activity in Texas of an estimated $19.8 billion in annual gross product
- By 2025, a gain of 180,226 jobs
- By 2025, an added $1.2 billion in tax revenue to the state
- By 2025, an added $0.9 billion in tax revenue to local governments
How will this change with COVID? Will only grow stronger
Waco Tribune | Ray Perryman: Supreme Court ruling on gays, transgenders points way for Texas
COVID Response. New Coalition Against Big Meat.
Big meat as in big poultry, beef, pork producers. To clarify for our gentle subscribers whose minds wander.
The new coalition goal: “Boycott Big Meat” national consumer education and lobbying campaign
Members of the coalition:
- The Organic Consumers Association (OCA)
- Forward Latino
- Socially Responsible Agricultural Project (SRAP)
- Dr. Mercola
- U.S. Farmers & Ranchers for a Green New Deal
How was the coalition received in Iowa? Endorsed by 50+ groups, including Cedar Rapids, Iowa Sunrise Hub and Iowa Alliance for Responsible Agriculture
What are the coalition’s Policy Goals: “decentralized system of organic regenerative pasture-raised/grass-fed meat production, run by a diverse network of local/regional independent farmers, ranchers, processors and retailers who are committed to fair pay and safe working conditions, and environmental and climate justice.”
COVID + BLM + Entertainment Industry = New executive vice president, philanthropy and social impact
The entertainment company: Sony Music
The newly created position: executive vice president, philanthropy and social impact
What does Sony Music want the executive vice president, philanthropy and social impact to achieve? Advance humanitarian efforts through impactful contributions and sustained strategic partnerships.
Who will the executive vice president, philanthropy and social impact report to? Sony/ATV Chairman and CEO Jon Platt and Sony Music Entertainment Chief Operating Officer Kevin Kelleher
What social impact actions has SONY taken in 2020?
- $100 million fund to support social justice and anti-racist initiatives
- Sony Corporation’s $100 million fund for global Covid-19 relief
Variety | Sony Music Group Names Towalame Austin Executive VP of Philanthropy and Social Impact
New Professional Sports Alliance for Social Responsibility in the Golden State
The coalition of professional sports teams: The ALLIANCE: Los Angeles
The members: Los Angeles include the Anaheim Ducks, Los Angeles Angels, Los Angeles Chargers, LA Clippers, Los Angeles Dodgers, Los Angeles Football Club, LA Galaxy, LA Kings, Los Angeles Lakers, Los Angeles Rams and Los Angeles Sparks
The goal of The ALLIANCE: Los Angeles: investment and impact for social justice through sport
How will they achieve this goal?
- Addressing racial injustice and disparities
- Developing educational opportunities
- Supporting other important issues facing communities of color, particularly Black communities
- Advocating for social justice
- Supporting the Play Equity Fund’s social justice movement in communities across greater Los Angeles
- Supporting Orange County’s Accelerate Change Together (ACT) Anaheim
Is the intent to spread to other states? Yes. Hello, Texas and all your professional sports teams.
Financial Managers Stewarding Social Responsibility
- Axa Investment Management
- Adopts one of the world’s toughest diversity policies “o force businesses around the world to appoint more women to board roles.”
- Goldman Sachs
- announced it will not take companies public unless they have at least one “diverse” board member
What is seen as working against corporate boards without diversity?
- These boards are viewed as having greater financial risk
- The pandemic has reinforced interest in diversity
National Review | Unacknowledged, but ‘Socially Responsible’ Legislators
BLM. NBA Jerseys can have Social Justice Messages
How will the social justice messages be displayed on NBA jerseys? The message will replace player names above their number.
What social justice statements can be chosen by players?
- “Black Lives Matter,”
- “Say Their Names,”
- “Vote,”
- “Equality,”
- “Freedom,”
- “Sí Se Puede” (Yes We Can),
- “I Can’t Breathe”⠀
- Justice
- Peace
- Enough
- Power to the People
- Justice Now
- Say Her Name
- Liberation
- See Us
- Hear Us
- Respect Us
- Love Us
- Listen
- Listen to Us
- Stand Up
- Ally
- Anti-Racist
- I Am A Man
- Speak Up
- How Many More
- Group Economics
- Education Reform
- Mentor
After the first 4 games, the social justice message can stay and the player name can be below the jersey number.
Deadline | NBA Approves 29 Social Justice Statements For Player Jerseys
2020 TREND. When a Corporation Asks a NFL Team to Change Names.
Which business asked the Redskins to change their name? FedEx
How did FedEx ask the Redskins to change their name? A one-sentence statement from Memphis-based FedEx, “We have communicated to the team in Washington our request that they change the team name.”
What’s the background between FedEx and the Redskins?
- FedEx is a Fortune 100 company with a 2 decade relationship with the Redskins
- FedEx holds the naming rights to the team’s existing stadium in Landover, Md., through 2026 under a 27-year, $205 million deal signed in November 1999
Who else has called on the Redskin name change?
- 85 investment firms and shareholders representing $620 billion in assets
- the group asked FedEx, Nike and PepsiCo to sever ties with the team unless its name changes
Natural Hair + Schools + Jobs = Meet Legislature #4 to Protect You
Where: Virginia
What: Virginia became the 4th state to prohibit discrimination against natural hair in schools and places of work
Refinery 29 | instagram | Virginia Becomes the 1st Southern State to Ban Natural Hair Discrimination
Leadership. Black police leadership = fewer fatal police shootings
When a city law enforcement is led by Black commanders:
- 65% lower per-capita rate of fatal shootings by police officers
- For a city of 1 million, this means 21 fatalities instead of 35
The data used: police data from the 60 largest U.S cities between 2015 and the first half of 2020
What the data also illuminates:
- 75% of the top 20 cities with the highest rates of fatal police shootings are led by white police leaders
- 13 out of the 20 cities with the lowest fatal police shooting rates are led by Black leaders
COVID Contact Tracing Assist from Tech Non-Profit
The tech non-profit: Silicon Slopes, that represents the state’s tech start-up community
What help is Silicon Slopes offering to governmental entities?
- a unified “crisis response service” for state governments
- test deployment
- virus-tracking
- data collection
Which tech companies are leading the initiative?
- Nomi Health, health-care vendor
- Overall coordinator for the organizations and processes
- Provides materials for pop-up test sites and connecting vendors, state health agencies, and public officials
- Domo, marketing analytics firm
- Qualtrics, an online survey software company
- Delivers an accessible symptom checking website
Government Technology | After Ironing Out Kinks, States Renew COVID-19 Contracts
How fast did Corporate America respond to BLM?
- By June 4th, almost all of the 50 largest corporations issued a BLM statement
- By June 4th, $1.1 billion had been pledged to Black Lives Matter, the NAACP, community rebuilding or outreach
- On June 1st, ViacomCBS turned 10 of its networks dark for 8 minutes and 46 seconds
- Vail Resorts Chief Executive Officer Rob Katz said his company and industry haven’t done enough to improve racial diversity in skiing, calling his own lack of action a “personal failing.”
- UnitedHealth Group created an education fund for George Flloyd’s children
- Goldman Sachs pledged $10 million “to help address racial and economic injustice.
Why has the response been different this time?
- Pandemic.
- Brands that are silent have more at risk than those that weigh in because “people are at home and watching.” – Tiffany McGhee, CEO and co-chief investment officer of institutional investment services at Momentum Advisors
- Polarizing Politics.
- Access to Information.
- “People are going to hold companies accountable, not just for what they say but for what they do.” – Rashad Robinson, president of Color of Change
Washington Post | Silent No More on Race, America’s CEOs Fumble for Right Words
By the Numbers. Growth of Social & Sustainability Bonds bolstered by COVID.
- $32 billion of “social” and “sustainability” bonds were issued in April 2020
- this growth is due to social bonds financing, both public and private responses, to create positive social outcomes to COVID
- 10.5% increase in government issued social and sustainability bonds in 2019
- In 2019, corporations went from issuing 3% of these bonds to 13%
- Since 2017, North America has increased its portion of social & sustainability bonds
Real Estate Development Meets Social Impact
Where is this happening? Detroit, Michigan
How does real estate development make a social impact? By revitalizing inner-city communities without displacing the community
What specific strategies are being used?
- connecting with tenants on a personal level
- growing real estate development around human capital
- addressing low rates of home-ownership in Detroit, the goal is buyer-friendly, rent-to-own leases
COVID & BLM Changed Fabric & Business of Fashion
What ways did COVID change the fashion industry?
- Supply Chains matter and the impact on people, communities & the environment matter to businesses and to consumers
- Identified systemic racism in the industry
The benefit to profits: “If you’re really authentically purpose driven…you can see an increase in productivity and innovation and in commitment, people get very excited when they think their job is likely to make a difference in the world, and that gives you some of the leeway you need to put purpose sometimes in front of profit.”
Sourcing Journal | In Fashion, Social Impact Is the New Black
Meet Imagine. CEOs supporting Corporate Social Responsibility. Why COVID strengthens their work.
Who is involved with Imagine: CEOs committed to speeding and scaling up corporate social responsibility efforts
Why has COVID solidified their goals of social corporate responsibility? capitalism as-is is not working because of the glaring inequalities in society
Who founded Imagine? Paul Polman, former CEO of Unilever, a pioneer of stakeholder capitalism who took over Unilever leadership during the 2008 recession with the goal of building a stronger society as Unilever grew stronger
What did the COVID pandemic reveal? “That global issues facing humanity today—the coronavirus, the climate crisis, cybersecurity—need global responses.”
Tim Cook on Corporate Social Responsibility
To open Apple’s WWDC 2020, Apple CEO said:
- On iPhone’s part in social responsibility:
- “We are humbled by it,”
- “some of the most dramatic societal changes have occurred because someone captured video,”
- “The thing that has changed though, and we’re very proud of this, is that we put a camera in everybody’s pocket, and so it becomes much tougher as a society, I believe, to convince themselves that it didn’t happen, or that it happened in a different manner or whatever it might be.”
- On corporate social responsibility:
- “We turned the company upside-down to help the world on COVID, and donated all of that, hundreds of millions of dollars,”
- “And so, I think my own view is, you pay what you owe in taxes, and then you give back to society. And Apple is clearly doing that.”
Apple Insider | Apple CEO Tim Cook pushes social responsibility in interview
The Age of Corporate Social Justice
What are the signs that we’re entering the Age of Corporate Social Justice?
- They make more money.
- Research says profits are higher at companies with effective corporate social responsibility programs.
- Consumers & Employees want more from corporations.
- The Killing of George Floyd brought about strong calls for social action by companies.
- 130 year old brands, like aunt Jemima, are being rebranded
- Companies are declaring Juneteenth company wide holidays
- Actions that are viewed as unjust are met with public criticism
- Donating to anti-LGBT politicians sees immediate backlash against corporations
- Selling facial recognition software which has been shown to mis-identify black and brown persons is criticized, and companies pull their software from the market
What can we learn?
- It is a solid NO to vanity projects
- Your company’s good acts have to fit your company and your community
- It is not just your company, it is your company’s partners also
- Be public about your social positions
Harvard Business Review | We’re Entering the Age of Corporate Social Justice
Why are Social Impact Funds out performing in a COVID world?
What reasons are financial experts offering for the success of socially responsible investments?
- A COVID recession is “a very humanitarian recession”
- Companies that are seen as helping, are benefitting
- Companies that are seen as bending the rules are losing value
New Tool for Social Impact Data
The new kid on the block: America’s Charities Engage software
What does America’s Charities Engage software offer?
- end-to-end giving and corporate social responsibility solution
- tells the complete picture of an organization’s global impact
- provides a complete picture of incorporating the United Nations Sustainable Development Goals (SDGs)
- manages all receipt, reconciliation, and distribution of employee-designated donations
Company Uses BlockChain to Fight Climate Change
The Company: Unilever
How is Unilever using blockchain to fight climate change?
- 1st, it established a billion-dollar fund to fight climate change
- 2nd, by using blockchain to create a deforestation supply chain
- 3rd, set a goal of 2032 to have an anti-deforestation supply chain
What Unilever subsidiary is also using blockchain? Ben & Jerry’s
How does Ben & Jerry’s use blockchain?
- Blockchain facilitates contributions to offset the carbon footprint
CryptoCurrency Post | Unilever Uses Blockchain Technology to Fight Climate Change
+1 Company Recognizing Juneteenth
The Company: Twitter
How will Twitter treat Juneteenth moving forward? Juneteenth will be a company holiday in the US henceforth
Diversity & Inclusion in Tech Spurred by BLM
The company: IBM
What did IBM’s top executive in North Carolina say? “If you’re going to be a good corporate citizen, then your employee base should match its surroundings, and quite often employers failed to look at that.”
What police reforms did the IBM CEO support as it pulled its facial recognition software?
- Creating a federal registry of police misconduct
- Greater police accountability for misconduct
- Expanding STEM education opportunities to communities of color
- Condoning mass surveillance, racial profiling, & violations of basic human rights and freedoms
Corporate Injustice Social Impact Plan
The company: Comcast
The Social Justice Impact Plan:
- $100 million
- $75 million in cash
- $25 million in media
- multiyear plan
- to “fight injustice and inequality against race, ethnicity, gender identity, sexual orientation or ability,”
The plan includes partnerships with:
- NBCUniversal & Sky to build programs & allocate resources
- for partnerships with national and local organizations
The Company’s statement:
“We know that Comcast alone can’t remedy this complex issue. But you have my commitment that our company will try to play an integral role in driving lasting reform. Together, we hope to help create a more equitable, just and inclusive society.” – Comcast CEO Brian Roberts
TV Technology | Comcast Pledges $100M for Social Justice, Equality
4 Policy Statements from Ben & Jerry’s Black Lives Matter Statement
Ben & Jerry’s social impact background:
- 1985 created the Ben & Jerry’s Foundation
- Employee-led grant program
- In 2018 distributed $2.7 million to support grassroots organizing for social and environmental justice
- Shares its values transparently & on its products
- Provides premiums to dairy farmers who achieve levels of sustainable agriculture and also dignified livelihoods for their farm workers
How is Ben & Jerry’s entity organized?
- B Corp
- It is a purpose-driven business owned by a multinational company
- & it is profitable
The 4 Policy Actions Ben & Jerry’s calls for in its statement:
- Elected officials must commit to a formal process of healing and reconciliation
- “Congress to pass H.R. 40, legislation that would create a commission to study the effects of slavery and discrimination from 1619 to the present and recommend appropriate remedies”
- Create a national task force to draft bipartisan legislation aimed at ending racial violence and increasing police accountability
- Reinstate DOJ’s Civil Rights Division that has been rolled back
Ben & Jerry’s | We Must Dismantle White Supremacy Silence Is Not An Option
Forbes | Why Ben & Jerry’s Won’t Stay Silent On White Supremacy—Or Other Social Justice Issues
Business Waves Fess for Black Businesses
Who: Uber Eats
What did Uber Eats do to promote black businesses?
- Waves fees for black owned businesses through 2020
- The app will prompt people to a list of available Black-owned restaurants in your area
Did Uber make a statement on Black Lives Matters? Yes.
- “I wish that the lives of George Floyd, Ahmaud Arbery, Breonna Taylor, and countless others weren’t so violently cut short.”
- “I wish that institutional racism, and the police violence it gives rise to, didn’t cause their deaths. I wish that all members of our Black community felt safe enough to move around their cities without fear.”
- “We know this isn’t enough. It won’t be enough until we see true racial justice. But we plan to work day in and day out to improve, learn, and grow as a company. Lastly, let me speak clearly and unequivocally: Black Lives Matter.”
Thrillist | Uber Eats Is Waiving Delivery Fees for All Black-Owned Restaurants
Anti-Racism: Local Resolution Creating Reparations Commission
Where: Chicago
What: Chicago City Council is considering a resolution to create a Reparations Commission for the next 20 years
What would be the goal of Chicago’s Reparations Commission?
- investigating how the city could make amends for slavery
- amends for housing segregation
- amends for other racist policies that inflicted harm on the city’s black residents
- “ensure equity, equality, and parity for citizens of African descent in Chicago who are mired in poverty”
Who would have a seat on the commission?
- the mayor
- 5 members of the city council
- 10 members from the public
- at least 8 people who would have to be from an “eligible impacted community”
Route 50 | One City Considers Creating a Reparations Commission
Anti-Racism: School Districts Cut Contracts with Police
Which school districts have cut their contracts with local police departments? Minneapolis & Portland
Which school districts are poised to follow suit? Denver, Phoenix, & Chicago
What are supporters saying?
- “It became a question of our morals, and what we value, and where we put our money.” -Minneapolis Board of Education student representative
- “We don’t have rigorous, causal evidence proving that SROs make schools safer,” -Associate professor at the Rutgers Graduate School of Education who studies school violence prevention.
- “When we need them, we’ll call them.” -Denver Board of Education Secretary Tay Anderson
Stateline via Route 50 | After George Floyd, Some School Districts Cut Ties With Police
Fortune 500 CEO Letters on Social Impact & Black Lives Matter
Which Fortune 500 CEOS? The 4 Black CEOs out of the 500 Fortune 500 CEOs
Who: Jide Zeitlin, CEO of the luxury goods brand Tapestry
What did Zeitlin say?
- “We can replace our windows and handbags, but we cannot bring back George Floyd, Ahmaud Arbery, Breonna Taylor, Eric Garner, Trayvon Martin, Emmett Till, and too many others. Each of these black lives matter,”
- Will “convene a number of social justice, legal, and corporate entities to formulate a longer-term plan for addressing systemic inequality” in areas like health, economic opportunity, and public safety.
Who: Marvin Ellison, CEO of Lowe’s
What did Ellison say?
- “I grew up in the segregated south and remember stories my parents shared about living in the Jim Crow South,” wrote Ellison. “So, I have personal understanding of the fear and frustration that many of you are feeling.”
- Lowe’s has a ZERO tolerance policy on racism
- Commitment to new resources to better support employee and communities
Who: Merck CEO Ken Frazier
What did Frazier say?
- “What the African American community sees in that videotape is that this African American man, who could be me or any other African American man, is being treated as less than human,”
- “huge opportunity gaps” still exist today
- “It is the responsibility of corporate America to bridge those gaps,”
Who: Roger Ferguson, CEO of TIAA
What did Ferguson say?
- “Personally, I am outraged by the recent incidents of racism, violence and police brutality against members of the African American community. The haunting video of Mr. Floyd’s last breaths is a sobering reflection of this national crisis,”
- “Particularly with the pandemic issues we are confronting in 2020, this is a time when we must embrace our differences and become more inclusive,
COVID Reshapes Corporate Focus
Who: Former CCO of Ascott, current CEO of National Volunteer and Philanthropy Centre
Why will the corporate focus switch to purpose driven?
- Chaos of the pandemic offered time to think about purpose as they had caught up on a slower day to day operations
- Awareness of corporate social responsibility (CSR) is growing during COVID
- More companies have been actively socially responsible during COVID
- Business Roundtable led the way with its August 2019 announcement changing corporate purpose to a commitment to ALL stakeholders not prioritizing shareholders
CNA Luxury | Companies will step up CSR efforts post-pandemic, says NVPC deputy CEO
How a Company Increases its Corporate Social Responsibility Goals Amid COVID
Who: Intel
How is Intel increasing its corporate social responsibility (CSR) goals?
- Launching a new 2030 csr strategy
- New RISE framework for CSR to be more:
- (R)esponsible
- (I)nclusive
- (S)ustainable
- (E)nable global challenges, tech industry initiatives, and Intel operational and supply chain goals
What is included as tangible CSR goals?
- 90% of employees believe that Intel has a strong safety culture
- 50% employee participation in their global corporate wellness program
- ensuring respects for human rights across suppliers
- delivering over 10 million community service hours
- 2x the number of women and minority numbers in senior leadership roles
- better accessibility for workers with disabilities
- increasing global spending with diverse suppliers by 100%
- 100% renewable energy goal
- conserving energy
- reducing carbon emissions by 10%
- increasing product energy efficiency for microprocessors
- achieving net positive water use by conserving 60 billion gallons of water
- achieving zero total waste to landfills
Forbes | Intel’s Amps Up Its 2030 CSR Goals Amongst COVID-19 Crisis
Auto manufacturer CEO letters on Black Lives Matter
Who: CEO Mary Barra of General Motors Co.
What did Barra say?
- Start asking “What are we going to do?”
- Expressed impatience and disgust
- GM will be inclusive
- Barra will lead an inclusion advisory board “of both internal and external leaders”
- GM will condemn intolerance
- GM will stand up against injustice
Who: Executive Chairman Bill Ford and CEO Jim Hackett of Ford Motor Co.
What did they say?
- They will meet with employees across the company
- They will engage with the Ford African Ancestry Network ( employee resource group dedicated to promoting diversity)
- “pain that many of our team members have long felt in their daily lives.”
Who: CEO Mike Manley of Fiat Chrysler Automobiles NV
What did Manley say?
- He is “deeply disturbed”
- He and the Company “emphatically reject the hatred and prejudice”
- They have the power to make a difference & they will being by listening to their employees
Legislative TREND. State Social Impact Funds for Cannabis
Where: Massachusetts
What? S2650 (2020 | MA)
How would Massachusetts social impact fund for cannabis function?
- Creates the Cannabis Social Equity Loan Trust Fund
- Offers no-interest loans to cannabis entrepreneurs from communities disproportionately impacted by “previous marijuana prohibition and enforcement”
- Funded by revenue from the cannabis excise tax + private gifts, grants, and donations
Governing | Legislative Watch: The Cannabis Industry in the Age of COVID
2 Universities Divesting from Fossil Fuels
The Universities:
- University of Manchester
- Cornell
How did the Universities take action?
- Manchester updated its Socially Responsible Investment Policy
- Cornell Trustees voted for divestment
Their funds:
- Manchester has 3-5% of its investments in fossil fuels
- Cornell $6.9 billion endowment portfolio
- 4.2% is in fossil fuels
- 70% of the university’s assets under investment are run by managers committed to considering
University of Manchester to decarbonise its investment portfolio
Universities Ranked for Social Impact
Who is ranking universities for their social impact? Times Higher Education
When did they start the social impact ranking? 2017
What system do they use to rank a Univeristy’s social impact? United Nation’s Sustainable Development Goals (SDGs)
How are they adapting this system? Since 2019, they have created a ranking for each of the SDGs
Is Univeristy participation growing? Yes, 476 universities participated in 2019 & 860 in 2020
Stanford Social Innovation Review | University Rankings as a Tool for Social Impact
COVID Bond Financing
Where: South Africa
How would social impact bonds function?
- plug the Covid-19 relief funding gap
Have other countries offered social impact bonds?
- Yes, Guatemala issued bonds for COVID relief
- The UK issued social impact bonds for a rehabilitation programme for prisoners at Peterborough Prison
Fin24 | Could a social impact bond work to fund SA’s Covid-19 interventions?
Investors Push for COVID worker protection disclosures
Which company’s investors? Amazon
Who is included in these investors?
- managers of pension funds in New York, California, & Illinois
What do Amazon’s investors want to know?
- Investors want Amazon to release a report detailing the outcomes of its investments in worker safety during the pandemic
- Investors want the report released at the annual shareholder meeting
CNBC | Amazon investors want the company to address worker safety at its shareholder meeting
3 Ways COVID is Changing Corporate Social Impact Programs
- More Companies Supporting Non-Profits
- Buy one mask, donate one mask
- Partnerships with food banks
- Partnerships with Girls & Boys Clubs
- Companies quickly adapt to help other companies move to an online environment
- eBay’s “Up and Running” program helps retailers with their ecommerce presence + pledges of up to $100 million in support for small businesses
- Increase in Cause Branded Products
- Threadless & chain restaurant Bonchon launched limited edition Bonchon-designed shoes with all proceeds benefiting restaurant industry workers adversely affected by COVID-19
Forbes | Is COVID-19 Changing Corporate Social Impact Programs Forever? Let’s Hope So.
How did a Cosmetic Company Embed Zero Waste in its Company?
The Company: Lush Cosmetics
When was Lush founded? 1995 in a single storefront in Poole, England
How did Lush embed zero waste in its ethos?
- Lush is vertically integrated and controls its supply chain, so it saves money by reducing packaging
- Lush reformulates products to reduce water content
- Lush adopts technology like Lush Lens App, which allows customers to use their phones to scan products and get the typical information they would find on a physical label
- For 10 years, Lush has used recycled paper and 100% PCR content for all our plastics
- Localizing supply chain by developing meaningful partnerships with local processors
GreenBiz | How cosmetics retailer Lush is making purposeful profit through circularity
The largest educator-only pension fund on ESG investments
What is the largest educator-only pension fund? California State Teachers’ Retirement Systems
What 4 ways has CALSTRs integrated climate into their ethos?
- beliefs
- policies
- stewardship efforts
- investments
How does CALSTRS engage corporations on climate issues?
- initiatives like Climate Action 100+
- developing viable energy storage technology by supporting storage technology development and implementation through investments
- implementing a meaningful price on carbon
COVID & Museums Re-Opening
What are examples of COVID protocols being adopted by museums?
- mask requirements
- one way only routes
- social distancing requirements
- sanitation stations
- online ticket purchasing
- staggered entrance times
- elimination of audio guides/requiring visitors to bring their own headphones
- cancelled group tours
- plexiglass protections for staff
- scheduled sanitizing of surfaces
New York Times | Europe’s Museums Begin Reopening, Cautiously, With New Rules
+1 Corporate Responsibility, Philanthropy, and Sustainability Leader in “Wake of COVID”
Who has a new Corporate Responsibility, Philanthropy, and Sustainability leader? Wells Fargo
What will the Corporate Responsibility, Philanthropy, and Sustainability leader oversee?
- corporate citizenship
- charitable giving
- public affairs
- sustainability experience
How does this tie to COVID? Wells Fargo is working to ensure housing security, small business stability, & consumer financial health
3 Ways COVID Forcing Sustainability
Looking at the fashion industry, how will sustainability increase in the new normal?
- Consumers have an increasing awareness that individual actions have societal consequences, which strengthens consumer calls for sustainability
- Employees will prioritize sustainability and social responsibility
- Immediate Economic Advantage to brands that are sustainable and socially responsible. Consumers are more focused on where products come from
Forbes | Coronavirus Will Force Fashion To A Sustainable Future
What Does GenZ Want from Loyalty Programs? Social Impact
How do we know what GenZ wants? The 8th annual Australian customer loyalty and loyalty program research study, For Love or MoneyTM 2020
What social impact rewards does GenZ favor in consumer loyalty programs?
- Recycling rewards
- Healthy behavior rewards
- Retirement Contribution Cash Back rewards
- Cost of Living Rewards that reduce phone, energy or insurance bills
- Cryptocurrency (e.g bitcoin) rewards
68% of participants in the study found that customer reward programs improve brand loyalty.
Modern Currency | Australian loyalty program members want rewards with social impact
+1 Business Adds Director of Social Impact
Who: makeup brand Rare Beauty
Why is Rare Beauty hiring a Director of Social Impact? To make a positive impact by:
- helping the brand move beyond words
- taking action to support mental health awareness
- having a leader solely focused on this responsibility
- holding the brand accountable, both internally and externally
Elle | Selena Gomez’s Rare Beauty Is Hiring
CNBC | Selena Gomez is hiring a ‘director of social impact’ for her makeup brand
President of an Oil Refiner Chooses Social Responsibility
Who: President of Orlen, Poland’s biggest oil refiner
Why does Orlen call for social responsibility?
- Pandemics should be responded to with “bold decisions in all areas of life, especially in business “
- Thinking should be global, without losing sight of your country
- Companies should make decisions to benefit society
- Diversification is necessary including adding zero- and low-emission generation sources
The first News | Orlen boss calls for social and economic responsibility in times of pandemic
COVID Business TREND: Social Distancing Apps
What perks do app users receive? users gain points for distancing that can then be used with participating retailers
Considering additional social impact/social responsibility versions of this app? Yes, to offer discounts for recycling and volunteering
From the Founder: “We don’t have really big aspirations outside of encouraging people and supporting brands, but we like to think that those are pretty big aspirations that will bring about some positive change,”
KNoxNews | Knoxville company creates app that rewards social distancing
Hackers new territory: Companies appearing to fake Social Responsibility
Whose research discovered this new hacker paradise? Corey Angst, professor of IT, analytics and operations at Notre Dame’s Mendoza College of Business
What is the Information Systems research by the professor? “Too Good to Be True: Firm Social Performance and the Risk of Data Breach,”
What’s the big picture here? If your company is ‘greenwashing’ or perceived as ‘greenwashing’ your risk of being hacked is higher.
What’s an example: If your social responsibility is contributing to a program that provides medical assistance to Sub-Saharan African countries but your primary business is mining coal in the Appalachians. The disconnect of the good works & your primary business is catching the attention of hackers.
COVID Relief Fund Established by Utility
Who: CenterPoint Energy Foundation
What: CenterPoint Energy’s COVID-19 Relief Fund
The relief Fund’s mission:
- $1 million in direct contributions
- up to $500,000 in matching gifts for employees’ contributions
- qualifying 501(c)3 organizations are eligible
Business TREND. Creating a Council for Sustainable Finance & Investing
Who: Goldman Sachs
What: Global Markets Division Sustainable Solutions Council’s composed of traders, sales staff and others
Why:
- share expertise on sustainable finance and investing
- build data sets and analytics tools
How does this support businesses? Clients look to achieve climate-change investment commitments after COVID and low oil prices
What did Morningstar Inc say about ESG funds? Returns at ESG funds held up better than non-ESG funds
Reuters | Goldman Sachs Puts Premium on Sustainable Investing With New Global Markets Council
ESGs Strong During COVID.
How funds focused on ESG have fared during COVID:
- Higher inflows in the same month over non-ESG funds
- 54% of global investors will increase ESG investments in 2020
- 80% of global ESG ETFs listed in Europe outperformed the MSCI World
How funds with NO ESG focus have fared:
- worst monthly outflows on record in March
ETF Stream | ETF Insight: ESG ETFs score major victory during coronavirus turmoil
Funds Europe | Sustainable funds resilient amidst covid-19 sell-off, study finds
What is corporate digital responsibility?
Corporate digital responsibility covers 4 areas:
- environmental
- responsible recycling or the disposal of tech equipment
- social
- data privacy protection of customers, employees, and other stakeholders
- economic
- creation of new digital-era jobs that are enriching, purposeful, and interesting (not gig employment)
- technological
- calling for a ban on the weaponization of AI and similar digital technologies
- avoiding biased or inaccurate AI decision-making algorithms can lead to unfair or discriminatory practices
Why is corporate digital responsibility timely?
- risks too high for corporate bad or unethical digital practices
- impact could be a total loss of personal privacy
- social and economic costs of unregulated gig-economy jobs with few or no social protections
What does data say about corporate growth and responsibility?
- 75% of Unilevers growth is attributable to its corporate responsible, sustainable line
MIT Sloan School | Corporate Responsibility in the Digital Era
COVID+ State Lottery Regulator = Social Responsibility Position
The State: Kentucky
The Kentucky Lottery Commission’s corporate social responsibility position: Kentucky Lottery’s Vice President of Communications and Social Responsibility
How much has revenue decreased since COVID? 50% decrease in lottery sales
Social responsibility actions during COVID:
- not inviting people who might be having financial difficulty to buy lottery games tickets
- “We’re going to continue to operate in a socially responsible manner, while we work to meet our commitments to Kentucky’s students.”
LEX18 | Kentucky lottery losses in the mega millions; overall sales down 7.3 percent
3 Ways COVID Moves Cannabis to Mainstream
- Elected officials embraced cannabis during COVID
- States declared cannabis an essential business
- Relaxing protocols to ease access to cannabis
CalMatters | COVID-19 pandemic response elevates cannabis to mainstream
Energy Innovation Opportunity: Social Impact Grant
Who is offering a social impact grant for energy innovation? Centrica
How many grants will be funded? Up to 10 grants can be secured between £100,000 to £500,000
The name of the grant program: Energy for Tomorrow
What targets should the energy innovators meet?
- address climate change
- lower energy bills
- deliver “real impact to people and communities”
Current News | Centrica launches social impact grant scheme to support energy innovation
3 Opportunities for Sustainable Business Models post COVID
- ADAPT. Business Models adapt as the World Rethinks What Matters. Look to IKEA and H&M in 2018 that saw economics not as linear, but circular and began including service programs like resale and recycling.
- WE ARE IN THIS TOGETHER. We’re all thinking of society, of community, of interconnectivity. Information passing at exponential speeds includes society. Creates Opportunity for companies to demonstrate commitment to the health, safety and prosperity of all stakeholders by addressing inequality in the business model.
- SUPPLY CHAINS MATTER. Invest in supply chain sustainability. Protect our societies, our economies and our businesses by ensuring stronger and more resilient value supply chain ecosystems.
COVID Crisis Leading to Greater Corporate Scrutiny.
Thought ESG, social impact, social responsibility, social good were important before COVID? Doing good could be more important now, after COVID, according two market analysts.
Why is scrutiny of whether companies treated their employees, supply chain and society well matter more? Because companies face greater scrutiny during the crisis
How does this also help drive profits higher for companies? Because employees who are treated well are more loyal, and perform 21% higher according to Gallup.
How do layoffs and furloughs impact employees?
- 41% decline in job satisfaction
- 36% decline in organizational commitment
- 20% decline in job performance
- replacing an employee costs a company on average 2x the previous employees annual salary
Morgan Stanley | Why the Coronavirus puts a new lens on ESG investing
Industry TREND. Women Led Breweries.
What: Pink Boots Collaboration Brew Day
Where: International Organization promoting women in the beer industry.
What does it mean for Austin’s breweries? A release of 6 women created brews for Pink Boots’ Brew Day/
Live Oak Brewing: Pink Pils!, an all-American pilsner available in six-pack cans
‒ Circle Brewing: Pink Velvet Collaboration IPA, available in six-pack cans
‒ St. Elmo Brewing: Caroline Hoppy Pale Ale, named after the deputy director of the Texas Craft Brewers Guild and available in 16 oz. four-packs
‒ Central District Brewing: Be a Lady, They Said Hazy Session IPA, available in 16 oz. four-packs
‒ Blue Owl Brewing: Pink Moon Boots Sour Dry-Hopped IPA, available for growler fills
‒ Bluebonnet Beer Co.: Blushing Bines IPA, available in 32 oz. crowlers or 32 or 64 oz. growlers
Austin 360 | Austin brewery’s Lizzo-inspired beer is ‘Good As Hell’
Is clean energy & smart infrastructure our economic salvation?
What does History says? Yes, infrastructure investments help the economy? Just like the works projects during the Great Depression
Can these investments protect us? Yes.
- We can protect our energy resiliency by employing workers, investing in American technology, and investing in technology that protects us against future volatility from international energy markets.
- Just like in 2008 during the Great recession, the Smart Grid Investment Program leveraged more than $9.5 billion in industry capital to strengthen cybersecurity, reduce operating costs, and develop new energy management innovation.
- Just look at the ROI when 2008 stimulus helped auto manufacturers in 2020, those manufacturers adapted facilities to make ventilators
3 Ways Investors Will Reward Companies in the new COVID world
Investors will reward companies that display acts of charity, compassion, and creative generosity.
Why do acts of charity, compassion, and creative generosity matter? mutual, index, and exchange-traded funds as well as institutional and individual investors measure socially responsible investing criteria
What does socially responsible investing mean? a focus on Environmental, Social and Governance criteria
How does that translate in the real world?
- “good citizenship” by companies
- such as manufacturers deploy excess capacity for ventilators, masks, and face shields, tech giants offer software for healthcare monitoring and data analysis and CEO’s cut their salaries
- or employers who placed their furloughed employees at other companies like Hilton did by placing their furloughed employees at Amazon
Tales of a Texas Business. Mask Maker.
A North Texas company that manufactures medical masks isn’t manufacturing 24/7. Some of the reasons why:
- American buyers wanted cheaper masks from China
- Supply chain is heavily tilted to Chinese products
- “If y’all don’t care about me in good times when everybody’s OK, how am I going to be there when you need me?” – the business owner
Connecting the Dots. COVID + Corporate Social Responsibility
Background: Earlier this year BlackRock’s Larry Flint called for greater sustainable business practices.
This letter has been updated for a COVID world in which he calls for:
- supporting our shared humanity
- higher value for long-term thinking
- strong sense of purpose
- “we can only serve our full set of stakeholders – from our employees to the communities where we operate – if we continue to make a positive contribution to society”
4 Takeaways for business:
- Companies that break with the doctrine of shareholder primacy, they avoid over-leveraging their balance sheets
- Invest in your employees, including health care and sick pay, & benefit from a more loyal and engaged workforce
- Treat your suppliers like partners, to experience fewer supply disruptions
- Do good and be rewarded by consumers
How is this playing out in a COVID world?
- 1 in 3 consumers are punishing companies that reacted poorly in the crisis
- corporate leadership should adopt a 360-degree view and become more attuned to their employees, value chains, and wider society
- Otherwise, you’re Amazon and hailed for a $100 million fund for climate change in February & then in March criticized for staff walk outs over inadequate safety measures
- LVMH hailed for making hand sanitizer at its factories & then criticized for taking government funds
Fortune | The coronavirus pandemic may be a turning point for responsible business
3 Reasons Equality Is Good for Business
- Improved innovation — Cindy Provin, GM, nCipher Security
- Diversity is not a buzzword; it creates monetary value –Anying Li, senior data scientist, Exabeam
- Problem solving in new & creative ways –Anying Li, senior data scientist, Exabeam’
SC Media | Help SC honor Women and Diversity in Cybersecurity with your recommendations
Socially Responsible Business + COVID = Resiliency
Background: In August 2019 the Business Roundtable announced a change in how business should think of itself in the US
What shift occurred in business? A shift in corporate values to evolve beyond financial performance to be more inclusive of broader, pressing societal interests… a sense of community in its employees and the communities in which it operates
What are examples of how companies have adopted this new model?
- The 5-bottom-line business model that supports and sustains our people, planet, community, business, and brands
- A focus on diversity in the boardroom and ESG (environmental, social, governance) initiatives
- Offering employees 5 days that they could use to volunteer and benefit the community
- Companies adopting certain charities
- Philosophical shift that “Management and the board have an obligation to be stewards of what is in the best interest of people and society as well as the environment.”
Is this change in corporate values to stay? ” I believe this is the new norm, as it should be.”
What is Responsible Procurement of Natural Gas?
Who developed this policy? Quebec’s power utility
What is the policy goal? “to promote business relations with proactive and responsible gas producers who are committed to being transparent and have demonstrated leadership in implementing ESG best practices.”
What are benchmarks for green-gas?
- producers and distributors comply with performance benchmarks for public disclosure
- labor standards
- finance
- field practices
- environment safeguards
- relations with communities and native tribes
Natural Gas Intel | Calgary’s 7G Secures ‘Responsible’ Natural Gas Supply Deal with Energir
Auto Insurers Issue Refunds In Response to COVID
Why?
During the pandemic driving mileage has decreased 35% – 50% causing a sharp decline in car accidents.
Which auto insurers?
Allstate:
- $600 million in refunds over the next 2 months for 18 million customer policies
- Allowing customers to delay 2 payments without penalty
- Opening Identity Protection products to all U.S. residents as cybercrime increases due to increased virtual meetings
American Family Insurance
- $50 rebate per car for more than 2 million customers
- Suspending late fees and cancellations
USAA, Progressive, & Farmers
extending grace periods, suspending late fees & cancellations, and allowing payment deferrals
Triple Pundit | Auto Insurers Issue Customer Refunds: ‘This is About Fairness’
NY Residents to Decide on $3 Billion Climate Action Bond Issue
Restore Mother Nature Bond Act and the Environmental Bond Act of 2020
- proposed by Governor Cuomo in January
- signed as part of the budget legislation for FY 2020-21 on April 3
- likely the only proposition to appear on the New York 2020 ballot
Where would funds be distributed?
- $1 billion for flood risk reduction, coastal rehabilitation, shoreline restoration, & ecological restoration projects
- $700 million for projects designed to mitigate the impacts of climate change
- $550 million for land conservation and recreation plans, programs, and projects and fish hatcheries
- $550 million for projects related to wastewater, sewage, and septic infrastructure, lead service line replacement, riparian buffers, stormwater runoff reduction, agricultural nutrient runoff reduction, and addressing harmful algal blooms
Ballotpedia News | New Yorkers will vote on a $3 billion bond issue designed to address environment and climate change issues in November
COVID Expected to Accelerate Environmental, Social, Governance (ESG) Investments
How has COVID increased ESG visibility?
Social – Companies doing right by their employees, customers, and communities in this most trying of times will be noticed, remembered, and rewarded with increased business.
Environmental – The impact of humans on the environment has been demonstrated the with countless images showing the recent decrease in emissions. This new evidence is providing a new perspective on climate action.
An opportunity for investors
- Current ESG measurements are imperfect providing an opportunity for investors to overlay their own analysis to discover potential opportunity and risk.
- ESG is not fully reflected in stock prices. This is likely to change, presenting an opportunity for active stock pickers now.
- ESG is here to stay. It results in changes to consumption preferences, which in turn affect revenue and operating margins. Anticipating changes to ESG scores will provide a profit opportunity.
nasdaq.com | How a global pandemic could accelerate the ESG imperative
JPMorgan Begins Mandatory Diversity & Inclusion (D&I) Training
Why?
A December New York Times article detailed customer and employee racial discrimination at an Arizona branch which was backed up by an audio recording.
What was the JPMorgan response?
The bank admitted D&I failures from the report and issued this statement: “We are all the keepers of our culture and we are committed to ensuring that ours is one where all employees and customers are treated equally and fairly, and where all of us receive the opportunity and mutual respect we deserve,”
Who must participate in the training?
all 257,000 employees and managers will receive special training
CNBC | JPMorgan starts mandatory diversity training for managers after discrimination allegations
World Health Organization (WHO) & Global Citizen partner for Virtual COVID Benefit
One World: Together At Home
The live event will be televised and streamed globally on April 18, 2020. Featured artists include but are not limited to Lizzo, Lady Gaga, Eddie Vedder, Paul McCartney, and Stevie Wonder.
How will the event support the COVID response?
Pledges from supporters and corporate partners go to the COVID-19 Solidarity Response Fund and local/regional charities that are providing food, shelter, and healthcare where it is most needed.
What does the WHO’s COVID-19 Solidarity Response Fund do?
- track and understand the spread of the virus
- ensure patients get the care they need and frontline workers get essential supplies and information
- accelerate efforts to develop vaccines, tests, and treatments
World Health Organization | WHO and Global Citizen announce: ‘One World: Together at home’ Global Special to support healthcare workers in the fight against the COVID-19 pandemic
Recycled Aluminum: A Future Energy Storage Option?
What happens with renewable energy when the weather does not cooperate?
- Diesel generators are used as a backup but this creates more carbon emissions.
- Power can be stored in batteries but the batteries require rare earth minerals.
Who’s working on a solution?
Swedish energy startup, Azelio uses recycled aluminum to store energy in the form of heat. The company says is its energy storage has a 90% round-trip efficiency.
Curent test sites
- Noor Ouarzazate solar complex in Morocco, a 580-megawatt (MW) power plant
- Abu Dhabi’s Masdar
Triple Pundit | Recycled Aluminum Could Allow for Next-Gen Energy Storage
COVID-19 Won’t Stop BlackRock’s Climate Action
Why still focus on ESG?
Companies performing well on ESG factors have outperformed the rest of the market since the S&P 500 peaked on February 19.
BlackRock motivated to continue climate focus amid pandemic
“The concept of long-term sustainability would suggest that companies that come through this crisis and do well would be exactly the kinds of companies you would look to as role models.”
ESG disclosures BlackRock expects of 2020 investments
- Disclosures aligning with the standards set by the Sustainability Accounting Standards Board (SASB),
- Published climate-related risks, following guidelines from the Task Force on Climate-related Financial Disclosures (TCFD)
- Plans for operations in a scenario where the Paris Agreement’s goal of limiting global warming to less than 2° Celsius is successful.
Triple Pundit | BlackRock Investors Push for Climate Action During Pandemic
2019: The 2nd Biggest Year for Wind Energy
Global wind energy
- up 19% (60.4 gigawatts) in 2019 compared to 2018
- total capacity now 651 GW
- a record 6.1 GW or 10% of new offshore wind farm installations
- Europe saw 30% year-on-year growth in the onshore market
World’s largest wind energy capacity by country
- largest onshore – China & the US
- largest cumulative offshore – UK
- largest in new offshore- China
What needs to happen to reach Paris Agreement Objectives?
installation of 100 GW of wind energy annually over the next decade
Electrek | EGEB: 2019 was the second-biggest year in history for wind power
European Union (EU) to Include Climate Initiatives in Coronavirus Economic Recovery Plan
EU leaders agree that their COVID-19 economic response will be consistent with the union’s “green transition” including the longterm goal of carbon neutrality for all member states by 2050.
Supporters
26 of the 27 EU member states
300 climate change groups
Opponent
Poland argues that the pandemic will make EU targets harder to reach.
Why tackle climate action & the COVID-19 crises simultaneously?
Governments around the world are pouring money into the economy at levels not seen since WWII. Politicians, economists, and climate activists want these measures to be used to accelerate the shift away from coal, oil, and gas.
Reuter’s | EU leaders agree to consider climate in coronavirus recovery plan
What are the Positive & Negative Impacts COVID-19 on the Environment?
Positive climate impact of COVID-19
- 25% reduction in global carbon emissions, or 200 million tons of carbon dioxide
- Nasa satellite images show dramatic decline in pollution levels for China & Italy
- fog pollution lifted in Seattle, New York, Los Angeles, Chicago, Atlanta
- current talk of climate & energy relief in future stimulus package(s)
Negative climate impact of COVID-19
- a reduction in oil prices has historically lead consumers to use it less efficiently while simultaneously depressing EV sales & disincentivizing retrofitting offices/homes
- renewable energy projects are experiencing disruptions in the global supply chain
- businesses find it difficult to secure financing for planned solar, wind, and electric grid projects
- important climate research and gatherings are delayed due to social distancing requirements
- the US and China are reducing environmental supervisions
The New York Times | What the Coronavirus Means for Climate Change
SEC Allows Chevron & Exxon to Dismiss Shareholder Climate Proposal
What did the SEC say?
Chevron Corp. and Exxon Mobil Corp. may reject a shareholder proposal calling for reports on how the companies are addressing climate change goals.
What the shareholder group requests
- information on steps to align with the Paris Agreement goal of net-zero emissions by 2050
- reduction targets
- long-term business plans
The SEC response trend
climate change-related proposals from shareholders are interpreted as micromanaging which in turn leads to companies to be less specific in reporting
Pensions & Investments | Exxon, Chevron given OK to dismiss shareholder climate proposal
COVID-19 – Prisons & Surrounding Communities
Due to confined living situations, experts are highly concerned that outbreaks will prove disastrous for the prison population their surrounding rural communities.
Prison populations that may be impacted by COVID-19
- 2.3 million inmates
- 7,000 jails
Efforts to mitigate prison outbreaks
- early release for prisoners with less than 90 days left
- non-violent inmate release
- 14 senators from both parties have written to the Justice Department requesting inmates 60+ of age, who’ve served more than 2/3 of their sentence receive home release
Triple Pundit | Prisons and Surrounding Communities at Huge Risk to COVID-19
Amid Coronavirus Outbreak Legislators Face Pressure on Climate Action
What policy makers are saying
The stimulus bill is designed to stabilize the economy, not impact climate change.
What green companies & climate activists are saying
- Clean energy faces the same stresses as the travel, restaurant, and entertainment industries.
- There is no conflict in helping green companies with climate-friendly legislation.
- Wind turbines, solar panels, and other renewable technologies cost much less than they did in 2009 when Congress passed the last stimulus package.
- The clean energy sector employs far more people since 2009 and has the potential to employ more.
Advocates for including climate action in a stimulus package
- green energy groups like the Solar Energy Association and the American Wind Energy Association
- environmental groups like the Sierra Club
- several U.S. senators including Bernie Sanders, Elizabeth Warren, and Jay Inslee
- professors from various universities
The Washington Post | As they race to boost the economy, lawmakers encounter push for a greener stimulus
New York Tackles Diversity & Inclusion in the Construction Industry
What’s the issue?
Diversity in the construction industry is a challenge as companies fail to recruit from historically marginalized groups. Despite a labor shortage, there are few minorities & women employed in the industry.
Efforts to change
New York leads the nation at setting high impact Minority and Women-owned Business Enterprises (MWBE) goals. During fiscal year 2018-19, MWBE state contracts reached 29.13%.
What can companies do?
- target a workforce that represents the community in which a business operates
- weave diversity and inclusion strategies into all parts of day-to-day practices
- national corporations can attract candidates through corporate-led programs
Amsterdam News | Fostering diversity in construction starts with community engagement
Google’s Efforts to Tackle COVID-19
Google Maps update
The app shows an alert when someone is searching for a doctor or hospital
The alert
“Call your doctor before visiting if you may have COVID-19. Source: CDC.” populates in a rectangular box near the bottom of the screen.
Additional efforts by Google
The company is prioritizing legitimate information such as symptoms and instructions from the Work Health Organization, while blocking misinformation, speculation, and fraudulent reports.
Phone Arena | New Google Maps feature is designed for those who fear that they have been infected
“Essential Business” Stepping Up on Employee Benefits During COVID-19 Outbreak
Unsung heroes
By spending hours face to face with crowds of people, retail clerks and other hourly employees are providing communities with a sense of normalcy at their own risk.
How are companies stepping up?
In the midst of a global pandemic, companies realize the public health risks are too great to forgo paying people to stay home and be safe.
Which stores are stepping up & how?
- Publix – 80 hours of “emergency pandemic pay” to full-time employees; 2 weeks paid leave for part-time employees
- HEB – hourly pay increased by $2; shortened hours for employees to restock; will pay any employees who get COVID-19
- Target – temporarily increase hourly rate by $2; bonuses from $250 to $1,500 to 20,000 hourly employees; pregnant, high-risk, and employees 65+ receive up to 30 days paid sick leave
- Wal-Mart – will distribute $300 bonuses to employees; quarantined employees receive 2 extra weeks of paid sick leave
Triple Pundit | More Retail, Grocer and Pharmacy Clerks Are Winning Paid Sick Leave
Disability. The Forgotten Aspect of Diversity and Inclusion (D&I)
Stats:
- 90% of companies prioritize diversity
- 4% of companies consider disability as part of D&I programs
- 15% of the global population (1 billion) live with a disability
Why include disability in D&I?
The group can ease talent shortages and add to organizational diversity, driving better decision-making and innovation. As a customer base, the disabled consumer group has $8 billion+ in disposable income.
Steps to improve disability inclusion
- Remove barriers that discourage people with disabilities from applying such as application format, online accessibility, and job description language.
- Create accessible workplaces so employees feel included in and comfortable with their physical working space.
- Embrace disabled customers with media and communication materials.
Harvard Business Review | Do Your D&I Efforts Include People with Disabilities?
Biobased Asphalt. The Path to a Greener Road Construction Industry
The CHAPLIN (Collaboration in aspHalt Applications with LigniN) program
- a meeting of 22 organizations comprising the entire road construction value-chain
- works together to stimulate the development and commercialization of lignin-containing asphalt
What is lignin?
- organic polymers that form key structural materials in plants and some algae
- released during of paper production
- a good substitute for fossil bitumen, a non-sustainable petroleum product
How does it work?
Adding lignin to asphalt can make it 50% greener and reduce the temperature of production and application by 86 °F. Lingin saves around 20% CO2 and 50% of fossil fuels.
Renewable Energy Magazine | Consortium Begins Biobased Asphalt Cooperation Program
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