Social Impact

Beauty industry watchdog

The Instagram account, Estée Laundry, has called out large beauty companies for waiting to close physical stores to protect employees, forcing staff to use PTO days during quarantine, or cutting scheduled shifts to avoid paying employees.

Public pressure

Because consumers currently feel let down by employers many are being more vigilant about brands caring for employees during the outbreak.

Positive examples applauded by Estée Laundry

Glossier, Tarte Cosmetics, Sunday Riley

Action Spurred by Estée Laundry

Sephora and Ulta have closed physical stores and committed to paying employees for a period of time.

Glossy | Coronavirus cancel culture: Beauty brands face pressure around social responsibility

The Green Deal

New legislation requiring companies in the European Union (EU) to help meet the EU’s goal of complete decarbonization by 2050.

What are the economic consequences?

Businesses are concerned about competition from less restrictive countries like the U.S. or China.

The “carbon border tax”

A tax being considered on imports from more-polluting countries

Factor in the Coronavirus

• the Green Deal is no longer the biggest threat to EU businesses
• drastically reducing emissions – China’s carbon emissions down by 25% in the past few weeks as they’ve dealt with the virus
• oil demand is at record lows and the air travel industry has taken a major hit

Forbes | Could Coronavirus Beat Green Deal In Slowing Climate Change? 

Construction industry’s global environmental impact

private and commercial building generates 30% of total greenhouse gas emissions and construction uses 32% of the world’s natural resources

Key motivators

• Public Disclosure. the majority of the S&P’s 500 publicly report ESG standards
• Employees look for it. prospective employees consider ESG credentials when choosing a workplace
• Legislation. an increase of carbon related legislation 
• Market Dictating. public contracts and funders require community benefits

Certifications to prove ESG credentials 

• BREEAM (Building Research Establishment Environmental Assessment Method)
• WELL Building 
• WiredScore’s Wired

JD Supra | ESG and the construction industry

Who testified?

Texas Healthcare and Bioscience Institute representing 90 TX biotech companies

TX biotech companies involved in COVID 19 solutions

Liminex, Pure MHC, VGXI, Emergent Technologies, Everlywell 

Biotech efforts

• using supercomputers to find vaccines and track the spread of the virus
• investing in research and technology to develop faster test kits, home test kids, and vaccines
• researching coronavirus DNA to better understand it
• collaborating to send a vaccine candidate to FDA human trials

Austin American Statesman | Texas biotech community joins coronavirus fight 

Cotton production

• involves 250 million people
• requires vast amounts of water
• relies on water polluting chemicals
• involves child or forced labor 

Good news!

Overall sustainable cotton sourcing has increased from 21% to 25% in the past 2 years, a significant improvement for an industry of this size. During that time period, twice as many companies began engaging in improved practices.

Corporate leaders of the movement

Marks & Spencer, Adidas, Ikea, and H&M

The Sustainability Times | More market leaders are using sustainably produced cotton 

How?

The International Olympics Committee (IOC) will invest in carbon savings to exceed the carbon emissions of host cities. 

Current carbon reducing efforts

• The IOC will support Africa’s Great Green Wall project to fight decertification by planting an Olympic Forest.
• As part of Dow’s Leading Blueprint 2025 Sustainability Goal the company is now the official Carbon Partner of the IOC and will reduce Olympic carbon emissions by 4 million tons.

Tokyo 2020

• All electricity for the competition venues and Olympic Village will be from 100% renewable sources.
• The Olympic vehicle fleet will feature carbon zero vehicles including hydrogen cars. 
• 65% of waste generated from the Olympics will be either recycled or reused.

Triple Pundit | The Olympics Will Become Carbon Positive From 2030 

The durian

This super fruit smells so bad that it is banned on public transportation in Singapore and other public spaces in Asia.

A green energy alternative

Researchers at the University of Sidney found a way to convert durian and jack fruit waste into energy storage.

The durian’s large surface area and high porosity make  its scraps perfect for the production of low-density solid materials that can be used in a variety of ways including thermal insulation and cosmetic thickeners.

Charging your phone

The fruit’s biowaste is ideal for high capacity energy storages devices otherwise known as supercapacitors. This means it is very environmentally friendly and has the ability charge your phone FAST. 

Forbes | Famously Smelly Fruit Could One Day Charge Your Phone 

Off-grid Solar (OGS)

• growing by 30% per year
• $1.75 billion in annual turnover in 2019

Benefits of OGS

• considered one of the most widely accessible and affordable renewable energy sources
• an option for the 800 million+ people without access to clean and affordable energy 

Obstacles for OGS

• must meet or exceed an annual growth rate of 13% to serve a projected 823 million users by 2030
• needs $11 billion in finance to bridge the affordability gap
• a need for enabling policies 
• decrease in over-regulation are necessary to expand accessibility 

Sustainability Times | Off-grid solar is now available to 420 million people 

The PA campus

• 7 standalone buildings, 192 acres, 800 employees
• increasing landfill diversion efforts since 2012
• waste handling costs slashed by 50%+
• recycled 1,171 tons in 2019, which equates to saving 4,248 mature trees

A multi-year, multi-step process

Volvo partnered with Waste-Management to make the transition to zero-waste. The company began with single-stream recycling then multi-stream recycling, implemented a composting program, and diverted landfill waste to an energy facility that powers turbines. 

Waste Today Magazine | Volvo CE partners with Waste Management to achieve zero waste to landfill

“Climate Neutral Certified”

A certification by the nonprofit Climate Neutral https://www.climateneutral.org 

The certification process

Climate Neutral helps companies estimate their carbon emissions and requires them to buy carbon offsets. To claim carbon neutrality and receive the certification the brand’s entire carbon footprint must be offset.

A 12-24 month reduction action must also be provided.

How many companies are currently certified?

135 brands including Klean Kanteen & Kickstarter

The Verge | There’s a new label to vet brands’ climate change pledges 

The Virginia Clean Economy Act

requires the state’s biggest utilities to deliver electricity from 100% renewable sources by 2045

What supporters are saying

• The legislation will jump-start the wind and solar industries in Virginia, creating new jobs and boosting the economy. 
• Virginia will be among the top states in the nation to cut emissions.

What opponents are saying

The legislation preserves the monopoly of state’s biggest utility (Dominion Energy) on renewable energy in Virginia and doesn’t provide enough protection for consumers.

The Washington Post | Virginia passes sweeping law to mandate clean energy amid questions about cost 

Millennial data:

• 87% of high net worth millennials investigate a company’s ESG before investing
• 90% aim to customize investment based on their values
• 90% want to increase their investment in socially responsible investments (SRI)

Millenial ESG Favorites

Microsoft Corporation MSFT, Alphabet Inc. GOOGL and Johnson & Johnson JNJ

ESG Market Growth

Bank of America Corporation estimates a $20 trillion of asset growth in ESG funds in the next 20 years. That’s equivalent to the S&P 500’s value.

Yahoo Finance | Millennials Are Inclined Toward ESG: Here’s Why 

The legislation

• cut carbon emissions to 5 million metric tons, 5% of the state’s output in 1990
• remaining emissions will be offset by carbon capture projects
• 15 states currently have similar legislation

Interim benchmark reductions

45% by 2030

75% by 2040

Opponent concerns

• There are no adjustments for population growth. 
• The state could lose business to other states without similar regulations.
• There is no verbiage for carbon-reduction policies.

East Oregonian | Washington Senate adopts carbon-neutral mandate 

Secret weapon: the company’s own battery cell

Ultium battery technology developed in partnership with LG Chem will offer flexibility and scalability for a broad range of vehicles with a lower production cost.

The “pouch cells” can be stacked like bricks to provide common building blocks for multiple vehicles and allow for superior packaging density.

Less Cobalt

Current lithium ion batteries are produced with cobalt, a rare resource often from conflict zones. The Ultium battery uses 70% less cobalt than a typical battery and GM aims for zero cobalt with continued development. 

The gist of it

$20 billion investment in both electric and autonomous vehicle technologies over the next 5 years with an extensive vehicle roll out by 2025

Triple Pundit | Battery Tech is at the Heart of General Motors’ All-Electric Future 

Similar InfoHive Throwback

What does the proposed European Union (EU) Climate Action Law do?

• sets a common trajectory and imposes revised targets to member states every 5 years from 2023
• adopts legally binding legislation that will be enforced if the European Parliament and European Council have no objections

The budget

The EU will dedicate 25% of its budget to tackle climate change and work to mobilize $1 trillion euros in investment over the next 10 years. The funding will help regions most economically disrupted by the transition. 

What are environmental activists saying

Without a plan to increase the bloc’s overall emissions goal for 2030 the 2015 Paris agreement will not be met. Activists are urging climate taxes and carbon budgets.

The New York Times | EU Commission Unveils Climate Law Amid Criticism 

Data from the Energy and Climate Intelligence Unit (ECIU)

$39 trillion or 49% of the world’s annual GDP comes from nations, regions, or cities with net zero targets. This includes 121 nations.

HUGE increase in pledged targets

The percentage of the global GDP with net zero targets has increased 3x in the past 8 months, since the ECIU launched its tracker. The increase is linked to the Intergovernmental Panel on Climate Change (IPPC) report that was released in 2018.

IPPC Report 

Reaching net zero by 2050 provides a 50% chance of keeping global warming to the Paris Agreement target of 1.5 degrees Celsius 

Energy & Climate Intelligence Unit | Almost half of global GDP under actual or intended net zero emission targets 

The groundbreaking decision

The court ruled that the plans do not show compatibility with the U.K.’s Climate Change Act, which transposes the Paris Agreement commitments into law and promises to reduce emissions to net zero by 2050.

Third runway expansion details 

• cost $18 billion 
• estimated completion in 2028
• adds capacity of 700+ planes/day 

No appeal so far

The government has seen the ruling and not sought permission to appeal to the U.K. Supreme Court.

With strong opposition from U.K. Prime Minister Boris Johnson and environmental groups, it is expected that the airport will work with the government to resolve their concerns.

Forbes | Heathrow Third Runway Rejected Over Incompatibility With Paris Climate Agreement

What is the taxonomy?

a 5-step EU classification system for sustainable activities that provides guidelines and classifications to enable institutions to assess whether an activity is environmentally sustainable

Phased in over 2 years

Financial firms and non-financial companies will create disclosure and assessment processes using the taxonomy to examine the overall impact of their activities on climate mitigation and adaptation 

The goal

provide risk insights so firms can integrate climate objectives into strategic plans and determine targets for financing sustainable activities

Forbes | Can The EU’s Green Taxonomy Wipe Out Greenwashing? 

The new Taycan

• priced at $100,000
• battery-powered
• challenger to Tesla’s Model S

Green vs ESG (Environmental, Social, Governance) Funding

Green financing can only be used for defined projects with environmental benefits. ESG financing has no restrictions on use of proceeds.

Why Green & not ESG?

Porsche sought standardization for clearer objectives and transparency which was available via Green financing.  

Green financing enables the company to tap funds with a dedicated sustainability focus and provide an alternative path for investors that were over-exposed to the auto industry.

Business Standard | Porsche to lean on green financing for its $6.6 billion electric-car plan 

EC inspired by increased demand 

With a recent boom in funds named ESG (Environmental, Social, Governance) the SEC (Securities and Exchange Commission) wants to ensure money managers are not falsely advertising.

The SEC requested public comment on whether ESG products should follow existing rules requiring a fund’s name to match its investments.

The Boom

ESG Funds attracted $21.4 billion of new money in 2019, totaling $137 billion of assets.

The number of funds in various sustainable names

• ESG – 331 
• SRI – 208
• Sustainable – 162
• Green – 49
• Social – 30 
• Environment – 26

Bloomberg | ESG Funds Might Soon Have to Prove to SEC They’re Actually ESG 

The Utilizing Significant Emissions with Innovative Technologies (USE IT) Act
Boosts research into far-off technologies to capture carbon emissions directly from the air and to reuse carbon dioxide in cement and steel production.

Background

The legislation is attached to the Senate’s fiscal 2020 defense bill but was rejected for procedural reasons . Recent hearings have brought Democrats onboard with amendments. 

While the Trump Administration has not weighed in specifically, it generally supports carbon capture and considers it a way to make coal more sustainable and efficient. 

Additional support

• Oil & Gas Industry
• National Wildlife Federation
• National Audubon Society 
• multiple Democrat co-sponsors

Bloomberg Environment | Carbon Capture Legislation Gaining Steam, Bipartisan Support

Swiss climate action

In 2015 the country was the first in the world to submit to the U.N. a formal climate change plan that would reduce emissions 50% below 1990 levels by 2030.

Updated Nationally Determined Contribution (NDC)

The U.N. seeks countries to submit stronger NDC’s detailing methods to achieve the Paris Climate Agreement goals. Currently most submitted NDC’s map out plans for 2025 or 2030 goals.

Swiss plan details to be released in December 2020

Details on how the country will meet the 2050 goal are expected after the Swiss parliament updates its key piece of climate legislation, the CO2 Act.

Climate Change News | Switzerland joins few nations confirming to UN it will enhance climate action plans

The beginning 

The city adopted the Urban Environmental Accords in 2005, committing to be zero-waste by 2040.

Austin’s “zero-waste” programs timeline:

• 2011 – Austin Resource Recovery (ARR) piloted curbside recycling collection
• 2015 – the waste characterization study found the materials from Austin landfills to be compostable (46%) or recyclable (44%), and only 10% required solid waste disposal
• 2016 – ARR rolled out it’s curbside composting program which now provides green compost bins to all residential Austin customers
• 2018 – the city adopted its Universal Recycling Ordinance requiring businesses to divert at least 50% of their waste from the landfill

Austin composting could save money

30-40% of the food supply becomes food waste which costs $165 billion/year to properly dispose. Converting food waste to compost will enrich the soil and support future crops.

The Austin Chronicle | A Decade of Action Toward a Zero-Waste City 

Polestar: the competition 

• launched in 2017 with a plug-in hybrid called the Polestar 1, which has the longest electric range of any hybrid
• owned by Volvo Car Group and Chinese auto giant Zhejiang Geely Holding
• Sweden-based
• released the all-electric Polestar 2 last year and plans to develop a fully electric SUV in the near future

Polestar’s goals

Vehicle sustainability is about more than all-electric or hybrid capabilities. Recently released plans to incorporate natural fibers and 3-D knit fabrics to achieve a 50% reduction in weight and 80% reduction in plastic for their vehicles.

Other EV cars incorporating sustainable materials

• Fisker Ocean electric crossover 
• Nissan Leaf
• BMW i3

Triple Pundit | ‘Tesla Killer’ Polestar Says It’s Going Beyond All-Electric Vehicles

The sustainability-linked loan

JetBlue and BNP Paribas SA, amended an existing $550 million senior secured revolving credit facility by closing a sustainability linked loan.

The credit facility’s sustainability updates

• includes a pricing mechanism related to JetBlue’s ESG (environmental, social, governance) score 
• JetBlue must align its strategic initiatives with its ESG performance goals and objectives

Why the change?

JetBlue is increasingly focused on ESG goals. The airline is shifting business to financial partners with stronger ESG policies and operating carbon neutral on all domestic flights by offsetting emissions from jet fuel.

The Wall Street Journal | JetBlue Closes Sustainability-Linked Loan With BNP Paribas

The plan 

• distribute large recycling bins and compost containers citywide 
• pay local residents a living wage to collect recyclable materials  
• salvage construction and demolition materials 
• promote community adoption and ownership of vacant lots and buildings
• cut ties with Wheelabrator, the city’s trash incinerator 

Supporters 

a coalition of environmental and community groups and 6 Baltimore City Council members

Opposition 

Wheelabrator officials argue that burning waste at the facility is better for the environment than transporting waste to a landfill. It also generates electricity and steam to heat downtown buildings, reducing the need for fossil fuels.

The Baltimore Sun | Baltimore launches plan to get to ‘zero waste,’ starting with closure of city trash incinerator

Avenue CDC

Houston-based nonprofit dedicated to developing affordable homes and strengthening communities

Green Mountain’s Sun Club

The Sun Club had donated $8.9 million to 122+ projects.It is an employee and customer funded nonprofit that empowers local communities through nonprofit partnerships and sustainability grants.

$200,000 to the Near Northside new community resource center

• 35+ kilowatts (kW) total of solar to reduce energy costs, 
• an electric vehicle,
• electric vehicle charging stations, 
• bike racks for clean methods of transportation,
• showers installed on-site to encourage bicycle commuting by Avenue Center tenants 

CSRwire | Avenue’s New Community Center Gets Sustainable Upgrades in Near Northside 

“Ready to Run” Initiative

Only 27% of elected officials in the U.S. are women. 

Through this corporate responsibility initiative M.M. LaFleur will lend clothes to women who run for office to support female candidates who lack the financial resources or time to build a wardrobe for the campaign trail. 

Non-partisan

To clearly set their non-partisan intentions the brand is partnering with the non-partisan group, “She Should Run”, which has a goal of recruiting 250,000 women to run for office by 2030.

The response

Within 2 days of the Instagram announcement 550+ women responded. 

The Washington Post | Dressing for the campaign trail can be tough for female candidates. M.M. LaFleur is lending free clothes to ease the burden. 

The 2050 initiative: 

• cut farming’s environmental impact in half 
• increase farm productivity by 40%

Nothing to do with climate change

The initiative will not mention climate change. Instead it will focus on research, innovation, and improving the USDA’s ability to collect data on farmers’ conservation practices.

Related USDA happenings

“Climate change” is a touchy topic for the USDA to address due to the current administration rolling back environmental regulations and the reluctance of farmers and ranchers to grapple with the scientific consensus that global warming is caused by human activity. 

Farming associations and lobby groups are more open to increased sustainability when the cause of global warming is not relevant.

Politico | USDA to unveil plan to cut farms’ environmental impact in half by 2050 

The LIFE program:

• EU’s funding instrument for environmental and climate action
• founded in 1992
• co-financed 5,400+ projects 
• 2021-2027 budget to increase by 60%

Climate projects

$108 million toward 10 large-scale environmental and climate projects that will “conserve nature, improve air and water quality, and make the economy greener”

Where?

Cyprus, Estonia, France, Greece, Ireland, Latvia, Slovakia, Czechia, Spain

Circular. | EU invests more than €100m to promote a “green and climate-neutral” Europe

The investments:

$250 million to Calvert Social Investment Fund for green bonds 

$250 million to Nuveen’s Core Impact Bond Strategy

$300 million to an impact fund from Avenue Capital Group

The state pension fund’s history on climate action

• considers itself a leader on climate action and has sought to take advantage of financial opportunities created by the transition to lower carbon
• made a climate action pledge in 2019
• plans to double its sustainable investments to $20 billion

Chief Investment Officer | New York Invests $800 Million into Green Bonds, Private Credit 

How?

BP will still produce oil and gas in 2050 but less than it does now and it will invest more in low-carbon businesses. 

The pledge requires BP to cut or offset 360m tons of greenhouse emissions each year though tree-planting and/or carbon capture technologies.

Change in the business model

The model will no longer be upstream or downstream. There will be four new business areas: 

• production and operations
• customers and products
• gas and low-carbon energy
• innovation and engineering

Other environmental changes

The company will play a more active role in lobbying for policies that prompt action on the climate crisis. 

It will cut spending on corporate reputational sponsorship and redirect the funds towards promoting climate action.

The Guardian | BP sets net zero carbon target for 2050 

The task force behind the guidelines

The Task Force on Climate-related Financial Disclosures (TCFDs) was established in 2015 to provide recommendations on climate-related financial disclosures and has had explosive growth in participation. 

The motivation to report

• Companies reporting TCFD recommendations have a lower risk profile and perform better than their peers.
• The World Economic Forum recently ranked climate risks as the top 5 threats facing the global economy.
• There is increased investor demand for information to help mitigate risks and understand opportunities related to the transition to a low carbon economy.

The firms

• 1,027 organizations across 55 countries
• 473 financial firms responsible for a combined $183.8 trillion
• major banks, regulators, stock exchanges, credit rating agencies, and national governments

Business Green | Climate risk: 1,000 global firms give backing to corporate disclosure guidelines 

The program

Test drives will start soon for all-electric, self-driving cars designed by Nuro to deliver fast food, groceries, and small packages.

Participants

WalMart, Domino’s, Kroger

Nuro’s R2 vehicle

• battery-powered and smaller than any passenger car
• relies on AI software, digital sensors, cameras, and LIDAR technology link: https://oceanservice.noaa.gov/facts/lidar.html 
• 360-degree vision to monitor for traffic, pedestrians, bike riders, and road conditions
• front end will giveaway should it strike a pedestrian or vehicle
• recently received the Department of Transportation’s first federal exemption to test drive on public streets
• a BIG HIT with investors raising over $1 billion

Triple Pundit | Nuro’s Self-Driving Electric Cars Will Soon Make Deliveries in Houston 

The Bezos Earth Fund

will finance “scientists, activists, NGOs – any effort that offers a real possibility to help preserve and protect the natural world”

Bezos past commitment to climate action

He’s previously invested in the Breakthrough Energy Ventures fund to finance the development of tech to mitigate climate change and reduce fossil fuels and carbon emissions.

Amazon’s climate action

• committed to net zero carbon by 2040
• by 2030 the entire corporate infrastructure will be powered by renewables

Background/Refreshing Our Recollection

Recent media reports have focused onAmazon’s employees and their participation in an all employee organization for “climate justice,” which may be a catalyst for Amazon’s commitment to climate action.

TechCrunch | Jeff Bezos announced a $10 billion fund to fight climate change

Why the need?

There is no one definition of “sustainable” or “eco-friendly” although the terms are very on-trend in the fashion industry. Consumers want sustainable clothing options and are overwhelmed trying understand the social impact of each brand.

Informative platforms

Wearwell, Good On You, & Compare Ethics review sustainability criteria for brands and choose items to feature accordingly. 

The companies consider criteria such as using recycled or materials organic materials and paying workers a living wage when curating their platforms.

Helpful for the fashion industry

These platforms inform the industry of what the consumer is looking for in sustainability. Recently there has been a strong increase in consumer interest in living wages and organic cotton products.

Vogue Business | The shopping platforms that want to standardize sustainability 

Companies with social impact commercials 

P&G, Michelob, Verizon, and Snickers

Lessons from successful CSR ads:

• Be timely & relevant
• Avoid politics and stay true to your brand
• Connect with the right audience whether it’s customers, policymakers, or both
• Focus on impact

A successful example: 

P&G Olay’s ad featuring the hashtag #makespaceforwomen and referencing the all-female space crew currently on the International Space Station.

Marketing Dive | Corporate social responsibility emerges as content king in 2020 Super Bowl ads 

Clean Economy Act

The bill lays out a plan for the U.S. to achieve net-zero greenhouse gas emissions no later than 2050. The E.P.A. will be responsible for implementation.

Who introduced it?

Senate Environment and Public Works Committee Chairman Tom Carper (D-Del.) and other Democrats

The House version:

The U.S. House released a broader bill (600 pages) detailing efforts to reduce emissions but the Senate version has more support including environmental and labor groups as well as the business community. 

The Hill | Senate bill requires US to reach net-zero carbon emissions by 2050

Loop: a modern version of the milkman model

Brands design non-disposable packaging for everyday items such as deodorant, ice cream, laundry detergent, dish soap etc. 

Consumers pay a deposit for the product’s container. Once the product is used, customers schedule a pickup and do not pay the deposit again as long as the container is returned. An online ordering system makes the process seamless and the introduction of Loop into retail stores will reduce deposit costs and increase brand selections.

Brands OnBoard:

Nestlé, Unilever, P&G

Benefits:

• Ellen MacArthur Foundation estimates that converting 20% of plastic packaging to reusable models is a $10 billion business opportunity
• Decrease in the carbon footprint for brands in the program
• Reduction of plastic waste in oceans and landfills
• Packaging designed by brands to optimize product quality (think ice cream that never melts in route to the store or home)
• The aesthetics of Loop packaging are more appealing to customers

Fast Company | Giant brands love Loop’s zero-waste packaging—and now it’s coming to a store near you

The 2019 Renewable Energy Buyers Alliance Report

Names the top renewable energy buyers for 2019, totaling 9.33 gigawatts of renewable energy bought in the U.S

Renewable procurers on the list: 

At the top of the list: Facebook and Google

Surprises on the list: McDonalds, Honda, Ford

Why tech companies?

Tech companies require energy-intensive data centers. Pressure is increasing for improved efficiency of data centers which involves the purchasing of more renewables.

Triple Pundit | Tech Companies Dominate the Largest U.S. Renewable Energy Buyers of 2019

How will JetBlue achieve this?

Since 2008 the company has had carbon offset programs which amount to 2.6 billion pounds of offset carbon emissions. JetBlue will continue these programs to offset an additional 15-17 billion pounds.

What is a “carbon offset”?

A carbon offset can be bought by a company to fund projects that reduce greenhouse gas emissions. Funds go to renewable energy projects, reforestation programs, or similar projects that reduce carbon emissions. 

When will the company make the shift?

July 2020 for the summer travel rush

Digital Media Solutions | JetBlue Goes Carbon Neutral As Social Responsibility Encourages Brand Loyalty

Move to Zero Collection

The line has been designed for the 2020 Summer Olympics in Tokyo and is made of at least 60% recycled and organic fabrics using new manufacturing methods to reduce waste.

Just the beginning

Nike is working on a “wholesale shift” in the way the company thinks about designing, sourcing, manufacturing, and selling all products. 

Skateboarding: the new kid on the block

2020 is the first year skateboarding will be an Olympic sport and Nike is designing 100% recycled polyester uniforms for the USA, French, Brazilian, Nigerian, and Korean teams.

Yahoo Finance | Nike’s Tokyo Olympic apparel is made out of 60% recycled material

Break Free From Plastic Pollution Act

Introduced by Sen. Tom Udall (D-N.M.) and Rep. Alan Lowenthal (D-Calif.)

The bill shifts costs of managing waste and recyclables from local and municipal governments to the producers of plastic materials.

Current issues with U.S. recycling: 

Many U.S. municipalities were shipping a large percentage of their recyclables abroad until 2018 when China changed its import policy on scrap materials. This coincided with increased public concern about ocean pollution and plastic waste.

The Hill | New bill calls for US to address source of plastic pollution

The City:
Kiel, a Baltic port , is the first and only German city to commit to the global “zero waste” initiative. 

The Goal:

eliminate waste, conserve and recover resources and not burn or bury them

Background: 

With a 68% recycling rate, Germany leads the EU in recycling. Many German cities believe enough is being done via these efforts although they are a top waste producer.

Others to commit to zero waste:

Corporate: Adidas, AG, Unilever, & BlackRock

Government: 300 municipalities in Italy, 100 municipalities in Spain, U.S. cities such as San Francisco

Bloomberg Green | Meet the First (And Only) German City to Commit to ‘Zero Waste’

The numbers:

15% of Etsy’s 1,209 employees are black and Latino

The plan to reach the 2023 goal of 18% Black & Latino employees:

• implement mentorship programs 
• create hiring rubrics to be more fair
• make changes to its performance management system

Black & Latino employees in other tech companies:

• Pintrest – 10%
• Google – 6.5%
• Twitter – 10.4%

Etsy’s rare accomplishment for the tech industry:

50%+ of the company’s workforce, board, and executive team are women.

CNBC.com | Etsy doubles black and Latino hires but still has work to do, diversity report shows 

The 2019 European numbers:

• funds that incorporate ESG criteria into their strategies increased 56% to $735 billion
• 50+ of the 360 funds started had a climate-oriented mandate
• the number of sustainable investment funds rose to 2,405

Who’s jumping on the ESG bandwagon?

Big investment firms around the world like BlackRock Inc. and Amundi SA

Bloomberg | European ESG Funds Pulled in Record $132 Billion in 2019 

Why the increase in microgrids?

increased demand for resiliency coupled with the far better energy security they provide

Companies poised to benefit from the increased interest in microgrids:

• CleanSpark, Inc.
• General Electric Company
• Eaton Corporation PLC
• Home Depot Inc.
• Walmart Inc.

Examples of the increased interest:

• Excel Energy is seeking approval for 7 new microgrid projects.
• California will complete microgrid projects prior to the next wildfire season.
• Cranston, RI plans to reach 100% renewable energy by 2030 with wind and solar microgrids

PRNewswire | Microgrids are Becoming the Most Sought After Solution to Energy Problems 

Pandora climate-based targets: 

• source 100% renewable electricity at its 2 crafting facilities in Thailand by 2020
• achieve carbon neutrality in its own operations by 2025

Plans to reach goals:

• source renewable electricity for its 2 Thailand facilities from verified solar energy providers
• increase its own production of solar power
• engage directly in developing renewable energy projects through power purchase agreements 
• introduce a policy for purchasing green power for its stores
• purchase carbon offsets for remaining unavoidable emissions, less than 5%

Current sustainability efforts: 

use of primarily recycled metals and man-made stones which have a significantly lower environmental footprint than mined stones

Professional Jeweler | Pandora vows to be 100% carbon neutral by 2025 

GM’s EV Investments:

• $2.2 billion to convert its Detroit-Hamtramck plant to exclusively produce all-electric trucks and SUVs
• $28 million for a new EV battery research center
• $2.2 billion to form a joint-venture with LG Chem for more affordable EVs

Past GM attempts at EVs:

• EV-1 – launched in 1996, only 1000 units sold before pulling from market in 2001
• Volt electric hybrid (sedan) – launched in 2010 and pulled in 2018
• Volt electric hybrid (crossover) – launched in 2016

Key takeaway:

While GM’s current focus is on primary internal combustion engine cars, it is building an infrastructure to compete with Tesla on EV cost. 

Triple Pundit | GM Seeks Competitive Edge in a 100 Percent EV Future 

Why?

based on the newspaper’s reporting on the urgency of climate change and a desire to be true to company vales

A broad editorial shift on “climate change”:

• transitioning from use of the term “climate change” to “climate crisis” or “climate emergency” to more accurately reflect the situation
• will use images that reflect the human costs of the “climate crisis” rather than lonely polar bears

The risk:

40% of the newspaper’s revenue comes from advertising. It is unclear how the move will financially impact the organization.

The Washington Post | The Guardian ends advertising from fossil fuel companies because of climate change 

The Collection:

“We are the Weather” is a capsule collection (essential items that won’t go out of style) inspired by Jonathan Safran Foer’s book which recommends eating less meat as a way to save the planet.

Sustainability:

All pieces of the collection are made with sustainable fabrics such as organic cotton, organic linen, and regenerated cashmere.

McCartney – a leader in fashion sustainability: 

• life-long vegetarian
• leader in innovative materials like “fur-free-fur” and viscose fibers
• recently implemented a garment labeling system to remind customers of the environment when washing and maintaining their clothes

The Independent | STELLA MCCARTNEY AND AUTHOR JONATHAN SAFRAN FOER LAUNCH SUSTAINABLE COLLECTION TO HIGHLIGHT CLIMATE CRISIS

Recent Verizon sustainability commitments:

• carbon neutrality by 2035
• reduce electronic waste
• decrease water consumption
• counter deforestation 

The plan to decrease current emission levels:

• give customers options to reduce their carbon footprint when using Verizon
• lease space in energy-efficient buildings
• deploy internal green teams across 44 countries
• install onsite renewable power
• plant 2 million trees by 2030

Past Verizon sustainability commitments: 

• eliminated 8.2 million tons of C02 emissions
• repurpose, reuse, or recycle 100 % of all wireless devices and accessories
• offset 20,000 metric tons of CO2 through clean energy initiatives

Triple Pundit | Verizon Stands Firm on Commitment to Become Carbon Neutral by 2035 

The litigation: 

14 local governments and a few NGOs in France are suing Total SA for not doing enough to reduce its carbon emissions.

Total’s current climate commitment:

• 13% reduction in greenhouse gas emissions by 2025
• “ambition” to reduce carbon intensity of energy sold to customers by 15% 
• investing $2 billion annually in low-carbon electricity 

What the plaintiffs want:

Total to “align itself on a trajectory compatible with limiting global warming to 1.5 degrees Celsius” 

Bloomberg | Total Sued by French Cities, NGOs Over Carbon Emission Targets 

The Policy: 

The company’s external communication policy prohibits employees from discussing company business without approval.

Amazon Employees for Climate Change: 

The employee advocacy group has published statements and blog posts in multiple national newspapers to protest Amazon’s contribution to climate change and the company’s threats to terminate employees who speak on the matter.

The Trend:

Tech workers at Amazon, Google, Microsoft, and Tableau are leveraging their position as valued assets in a tight labor market to pressure employers on political issues.

Geek Wire | Hundreds of Amazon employees protest company PR policy by speaking out about climate change

Areas of focus:

Sustainability, digital education and training, employee engagement for social good

Access to digital technologies:

To make employees and job seekers fit for the digital job market Microsoft will offer a digital training program at a Volkswagen’s Faculty 73, a training program for IT specialists. 

Reduction of carbon emissions:

A “thinkathon” will be held this Spring with participants from both companies considering how to use artificial intelligence to reduce carbon dioxide emissions. 

Why:

Both companies have previously committed to sustainability issues and teamed up to improve the efficiency of their programs.

Automotive World | Social responsibility: Volkswagen Group and Microsoft expand partnership

Regulatory Action:

Governor Murphy issued an executive order requiring the state Dept. of Environmental Protection (DEP) to draft new regulations to be adopted by January 2022.

Applicants for DEP permits and approvals will be forced to consider how climate change will impact the project and the effect of its emissions on global warming. Rules will also apply to construction of state-funded projects and anything built with grants.

Why: 

A November 2019 study found sea level in New Jersey is rising more than two times faster than the global average and some coastal areas are experiencing subsidence (sinking).

National Trend: 

Several other states including Rhode Island are considering land-use laws to confront coastal resiliency. 

New York and California are taking regulatory climate action in light of the Trump administration’s regulatory rollbacks.

New York Times | With 130-Mile Coast, New Jersey Marks a First in Climate Change Fight 

Key Takeaway: 

Top financially performingcompanies help customers with energy efficiency, solve of the biggest sustainability challenges, and are leaders in productivity

3 ESG Funds outperformed the market by 4%:

• $878 Million Ave Maria Growth Fund 
• $4.9 billion Putnam Sustainable Leaders Fund 
• $3.8 billion Calvert Equity Fund

Companies that top performing ESG funds bet on:

• tech – Microsoft Corp., Apple Inc. and Alphabet Inc.
• healthcare – Danaher Corp. and Thermo Fisher Scientific Inc. 
• finance services – Visa and Mastercard

bloomberg.com | The Biggest ESG Funds Are Beating the Market 

“Good Done Right” Details:

Achieve better housing conditions and responsible antibiotic use for livestock used by the brand by the end of 2024

Wendy’s 2019 Noteworthy CSR Efforts: 

• achieved a perfect score the Human Rights Campaign’s Corporate Equality Index
• utilized all hydroponic, vine-ripened tomatoes in North America
• designated a Best Place to Work for LGBTQ Equality
• raised $15 million+ for the Dave Thomas Foundation for Adoption and its Wendy’s Wonderful Kids program
• extended domestic partner benefits to company employees
• expanded Employee Assistance Program to all company employees

QSRweb.com | Wendy’s pledges improved animal housing, responsible antibiotic use by 2024 

What is Davos?

Davos is the location of the World Economic Forum’s annual meeting where business leaders and government heads use the media spotlight to highlight major sustainability announcements.

Corporate Giant Announcements:

• Nestlé: 
  • commits to all recyclable or reusable packaging by 2025
  • invests $2 billion in the development of sustainable packaging solutions
• Microsoft: 
  • commits to remove all carbon it has created by 2050 and will be carbon negative by 2030
  • invests $1 billion into a climate innovation fund
• BlackRock: 
  • joins the Climate Action 100+
  • exits investments in thermal coal producers
  • sent a letter to investors describing climate change as a defining factor in companies’ long-term prospects

The (Customer Data Platform) CDP A-List:

CDP is an international non-profit that runs the global disclosure system for investors, companies, cities, states, and regions to manage their environmental impacts.

The CDP’s A-List compiles the world’s most pioneering companies at the forefront of environmental transparency and performance.

A few international leaders of the CDP A-List:

AstraZeneca, BT Group, CVS Health, Danone, H&M, Grupo CCR Klabin, The LEGO Group, L’Oreal, Ørsted, Sainsburys, Samsung Engineering, Sony, Unilever, & Walmart

Ethical Corporation Magazine | Microsoft, Nestlé and BlackRock put climate action centre stage at Davos

Bank of America: 

• clients invest $25 billion in environment, social, and governance (ESG) funds
• $300 billion investment over the next decade in sustainable business projects
• deploy $126+ billion to environmental business efforts

ESG investing on the rise:

$20 billion invested in ESG mutual funds. This is four times the 2018 level, which had been the previous record.

CNBC | Bank of America CEO says clients want to invest in companies ‘doing right by society’ 

What is it?

The rapidly accelerating corporate trend to focus on strategy, societal impact, talent, and technology 

Deloitte’s Readiness Report:

Surveyed 2,000+ C-Suite executives in 19 countries to see how organizations are utilizing technology to profit while acting in a more socially responsible way 

Survey findings:

• Companies with a comprehensive Industry 4.0 plan are outperforming their counterparts
• 40% of respondents focus on social issues because of the importance to external stakeholders
• 70% who’ve integrated Industry 4.0 have made a great deal of progress toward their goal of making a profit and an impact
• 90%+ have sustainability plans or are building them

Forbes | The Fourth Industrial Revolution: At The Intersection Of Readiness And Responsibility 

Budha Ismail Jam v. International Finance Corp.

Fishermen sued IFC on the grounds that it approved a $450 million loan for the Tata Mundra Ultra Mega Power (Coal) Project without ensuring that developers would adhere to environmental standards.

Resulting pollution prevented fishing nearby and reduced fish population.

The legal journey:

Lower courts accepted the IFC’s argument that it has immunity as a foreign government under the 1945 International Organizations Immunities Act (IOIA).

The U.S. Supreme Court determined in a 7-1 ruling that those protections have limits.

The bottom line:

There is no longer absolute legal immunity for the IFC and similar organizations. 

In the most recent Allianz Risk Assessment survey, 33% of the 3,000 respondents said the threat of legal and regulatory action poses the most significant impact in relation to corporate climate risk.

eenews.net | World Bank coal case a testing ground for climate liability

Larry Fink’s prediction:

In Fink’s statement about BlackRock joining the Climate 100+,  he predicts that capital will increasingly be allocated to companies with the most sustainable business models.

What does this mean for the future of business?

The corporate roles of finance, investor relations, and sustainability must become symbiotic. 

Stock prices react to sustainability:

Most stockholders do not read sustainability reports. However, when CEOs present long-term social responsibility plans to investors, stocks go up. 

New reporting methods that are more convenient for investors must be developed to simultaneously account for both economic performance and social impact.   

Examples of sustainability leading to profit: 

• Walmart raised entry-level employee wages leading turnover to decline and productivity to increase.  
• PayPal extended financing to small businesses that were denied credit, and opened a $10 billion market opportunity. 
• Novartis brought health education to rural villages in India and opened a new market of 70 million potential customers.

Harvard Business Review | Larry Fink Isn’t Going to Read Your Sustainability Report

The “Priceless Planet Coalition”: 

Platform to unite corporate sustainability efforts and make meaningful investments to preserve the environment.

What will it do?

The coalition will plant 100 million trees over 5 years and encourage customers to use mass transportation and contribute to their tree planing initiative.

Coalition partners: 

Citibank, Santander UK, IHS Markit, bunq, Saks Fifth Avenue, L.L. Bean, New York Metropolitan Transportation Authority, Transport for London, and American Airlines

Yahoo Finance | Mastercard and Partners Launch Priceless Planet Coalition to Act on Climate Change

Items to be included in the ban: 

food containers, cups, bowls, foam coolers, pool toys, packing peanuts and foam wine-shipment inserts

Items not included in the ban:

Clear plastic containers, foam trays under meat or fish at grocery markets, items shipped into the city, and an exemption if a business demonstrated the ordinance presents a hardship.

Enforcement? 

Via a complaint-based system, consumers will be able to report people or businesses. The City will provide 3 warning letters and then issue fines.

Public opinion:

In an online survey of chambers of commerce, trade organizations and local businesses:

• 91% supported a ban on polystyrene food containers at food establishments, 
• 89% supported a ban on the sale of polystyrene foam products at retail stores, 
• and 87% supported straws being provided only upon request.

Sonoma News | Pool noodles and packing peanuts: Sonoma takes aim against Styrofoam

The Italian National Fashion Chamber diversity agenda:

The 100+ chamber members will increase racial and gender diversity in key roles in Milan’s fashion houses. Progress will be monitored annually.

Why now? 

Recent scandals involving blackface designs by Gucci and Prada and a Chinese backlash that forced Dolce&Gabbana to cancel a major Shanghai show.

Other Italian Fashion Initiatives:

• Gucci launched a scholarship program to reach students who’ve been misrepresented in the industry. 
• Prada announced a diversity council headed by two Americans.

The Washington Post | Italian fashion world adopts manifesto promoting diversity 

The Program: 

“EY Ripples” – aims to positively impact 1 billion people by 2030 by offering consulting services for a nominal fee so impact entrepreneurs can afford them

Employee Engagement:

More than 1 million firm members will participate to:

• work with entrepreneurs to find innovative solutions to global issues
• support the next generation to find and maintain meaningful work
• build environmentally-friendly business models that simultaneously advance economic opportunity 

Status: 

500 EY Ripple projects have already been completed. All relate to the UN’s Sustainable Development Goals

Accounting Today | Firms giving back: EY launches worldwide ‘Ripples’ program

Initiative for Responsible Mining Assurance (IRMA): 

IRMA is a certification program that measures the performance of industrial-scale mines against its Standard for Responsible Mining. The certificate is used for multiple industries seeking increased transparency within their supply chain. 

What Led to the Move?

The industry pivot to electric vehicles requires products such as cobalt and lithium but these materials are often produced in dangerous or illegal mines in conflict-ridden countries.

Others in the IRMA: 

• Tiffany & Co.
• Anglo American 
• Microsoft
• International Jewelers of America

GreenBiz.com | BMW is the first carmaker to join responsible mining initiative

Legislation:

• Prime Minister Justin Trudeau is working to ban single-use plastics as early as 2021.
• Vancouver is the 1st Canadian city to ban single-use foam.
• Canadian provinces of Nova Scotia, Manitoba, Prince Edward Island, Newfoundland, and Labrador are planning bans.

Canadian Polling:

• 64% of consumers want to be offered the option of packaging-free products and deliveries. 
• 71.2% support a ban on all single-use plastics.
• 94% are “personally motivated to reduce single-use plastic packaging”.

Corporate Examples:

• Early this year Loblaw Companies Ltd will pilot a program with TerraCycle to allow shoppers to buy items in reusable containers.
• Metro, Inc allows customers to buy meat, fish, and pastries using their own containers.
• Empire Co. Ltd. will phase out plastic bags by the end of the month.

BNNBloomberg | Businesses aim to reduce waste in 2020 as consumers become more eco-conscious 

The Data:

GLG survey of 100+ current North American CEOs across multiple sectors

CEO thoughts on Corporate Social Responsibility (CSR):

• 90% agree with the Business Roundtable’s recent policy statement. 
• 85% plan to contribute money and/or in-kind services to combat climate change.
  62% plan to change hiring practices to advance gender parity.
  57% plan to change hiring practices to advance racial justice.

2020 CEO Financial Outlook:

• 80% are confident that their company’s revenue will grow 
• 51% think global growth will increase

PR Newswire | GLG 2020 CEO Survey Data Released: CEOs Bullish on Growth and Embracing Social Responsibility

The 2030 “zero waste” goals:

• 90% diversion rate from the landfill
• 30% reduction in campus-generated waste

Vanderbilt’s Sustainability Track Record:

• 30 year history of recycling
• 1st premier institution in the Southeast to pursue carbon neutrality and set a Net Zero + Resilience energy goals (by 2050) 
• currently diverts 47% of waste from the landfill

How the Goals Were Determined: 

On and off-campus stakeholders participated in a 9 month process to address the university’s carbon footprint and provide recommendations to reduce the university’s environmental impact.

vanderbilt.edu | Vanderbilt University commits to achieving zero waste goal by 2030 

What is Climate Action 100+?
A global investor initiative to ensure the world’s largest corporate greenhouse gas emitters take necessary action on climate change

Current Initiative Stats:

• 370+ investors signed on, representing $41+ trillion in assets
• 161 companies are currently engaged through the initiative 

Why This Matters:

BlackRock is the largest asset manager in the world. By joining the Climate Action 100+ the company has added $6.8 trillion in assets to those engaged in the program and cemented the program’s credibility.

Ceres.org | BlackRock joins Climate Action 100+ to ensure largest corporate emitters act on climate crisis

Past Sustainability Moves:

• Has used paper bags rather than plastic for years
• 2018 – introduced recyclable cold cups and lids
• 2019 – began highlighting their existing vegetarian items

New Sustainability Goals:

• all packaging to be recyclable, compostable, or reusable by 2025
• install recycling and composting bins in restaurants where local infrastructure permits 
• new packaging materials to be free of PFAS, phthalates, and BPA

Concerns:

The environmental impact will be determined based on how generous Taco Bell is with their currently vague definition of “reusable”. 

Fast Company | Taco Bell says it will make all its packaging recyclable, compostable, or reusable by 2025

Industry Trends: 

• There is growing public concern about how food gets from farm to table.
• Large farms like Honeysuckle are working to provide more transparency in their processes.

Vital Farms:

• on a mission to bring “ethically-produced food to the table”
• partners with 200 U.S. farms
• lists the farm of origin on every egg carton so customers can view the video from that farm
• animal welfare claims are third-party verified

Take a look here!

Triple Pundit | An Industry First: Look Inside the Henhouses at Vital Farms  

What: 

The Virginia Clean Economy Act builds an electric grid that runs on 100% carbon-free energy by 2050.

How it works: 

• scales up investments in energy efficiency 
• requires utilities to scale up renewable energy deployment
• increases opportunities for Virginians to access clean energy resources 
• commits Virginia to join the Regional Greenhouse Gas Initiative (RGGI)

Who supports the legislation?

a broad coalition of businesses, clean energy advocates, & environmental justice groups

CSR Wire | Clean Energy Act Will Ensure Virginia is a Leader in the Net-Zero Emissions Future

The local ordinance: 

Dallas requires landlords to make trash recycling available for tenants of apartment buildings  with 8 units or more

Background:

Dallas adopted a “Zero Waste” goal in 2013. Because more than half of Dallas residents live in apartments this ordinance will affect a lot of the population and a large volume of trash. 

Most other large cities in Texas adopted apartment recycling years ago.

Concerns:

Texas Campaign for the Environment is concerned the law will not be enforced.

NBCDFW.com | Dallas Apartment Trash Recycling Law Takes Effect

Leader in Water Conservation:

The Bellagio, Caesar’s Palace, and Venetianfountains save millions of gallons of water each year through sustainable water programs.

Renewable Energy:

MGM, Wynn, and Caesars have completely left the electric grid.

MGM operates the nation’s largest rooftop solar array and it is currently breaking ground on a solar farm to power 90% of the daytime energy for their 12 Strip resorts by the end of the year.

Food Waste: 

To deal with the “all you can eat” buffet food waste, companies send hundreds of thousands of pounds of food scraps to local live stock farms.

CSR in 2018:

• Casino employees volunteered more than 422,000 hours.
• American Gaming Association companies gave $367 Million to charity.

Fortune | MGM Resorts CEO: What Happens in Vegas No Longer Stays in Vegas 

Business synergies from incorporating purpose driven profit:

• improved customer acquisition and retention
• improved staff engagement
• lower costs

The bottom-line (per Harvard Business Review):

• Highly meaningful work generates an additional $9,078 per worker/year. 
• When employees feel their work is highly meaningful, companies save $6.43 million/year on turnover for every 10,000 employees.

Success – Bulb Energy 

Bulb became the UK’s biggest green energy supplier during a time when 7 UK energy suppliers failed. Bulb reaches more than 1 million customers and attracts new employees by providing 100% renewable electricity and 100% carbon neutral gas.

Chief Sustainability Officer | Balancing Purpose and Pay

Intuit’s Established Sustainability: 

• ahead of schedule to meet goals for the Science Based Targets Initiative, which reduce emissions in-line with the Paris Agreement
• achieved carbon neutrality for its global operations in 2015

The New Initiative:

Intuit has partnered with Project Drawdown to become carbon neutral and eventually “climate positive” by 2030. 

10 to 15 other companies have also signed on to create more ambitious climate commitments. 

What Does “Climate Neutral” Look Like? 

The company pledges to reduce its carbon emissions by 50 times greater than its current carbon footprint.

Green Biz | Intuit teams with Project Drawdown for ambitious ‘climate positive’ pledge 

Trendstarter – San Francisco: 

In a pilot program, the Blue Bottle coffeehouse chain will stop using paper cups at 2 San Francisco locations in 2020. The program will inform the company ahead of their planned zero-waste transition for all 70 locations.

Nationwide Industry Leaders: 

Starbucks and McDonald’s invested $10 million to partner with Closed Loop to develop the “single-use cup of the future” that is recyclable and compostable. 

Starbucks plans to test newly designed recyclable cups in 5 cities next year.

Relevant Legislation:

New York State, Colorado, Oregon, and New Jersey are considering legislation to ban styrofoam cups. 

Maine, Vermont, and Maryland have already passed similar legislation.

NBCNews.com | Growing number of San Francisco cafes banishing disposable coffee cups 

Who conducted the study?

International Renewable Energy Association (IRENA) and the UN refugee agency, UNHCR

What?

Study looked at how solar power can deliver energy for lighting, water pumps, cooking and related needs in 2 refugee camps in Ethiopia and 2 refugee camps in Iraq.

The results:

The 2 camps currently use grid light, diesel-fueled generators, wood, charcoal, or animal dung and some had power for only 4 hours a day.

The switch to solar reduces emissions, improves life in refugee camps, and cuts the current $35 million the UN spends per year on diesel fuel for generators. 

Sustainability Times | Study touts solar as a solution for the world’s displaced 

The Program:

Lyft will provide 100 families in Prince George County, MD with rides to grocery stores for $2.50 each ride.

Lyft’s Community Building Initiative:

In January 2019 the City Works program rolled out in Washington D.C. It invests a minimum of $50 million/year to improving city life through transportation initiates. 

Why?

Reputation protection as Lyft is establishing itself as the “more ethical” ride-share service.

RetailWire | Lyft rides wave of social responsibility to fix food deserts 

Diamond Industry Recession:

• 25% decline in rough diamonds sales
• 10% decline in polished diamond sales
• 2% decline in global diamond retail sales

Mined Diamond Industry Disruptions:

• growing consumer demand for environmental and social responsibility
• online sales
• lab-grown diamonds 

What is the difference in this diamond industry recession & past ones?

Recent documentaries have shed light on the human and environmental costs of mined diamonds. 

Sustainable Options = Biggest Industry Threat:

Millennials and Gen Z consumers are the primary target for engagement rings and are choosing to buy lab-grown diamonds for their sustainability. 

Forbes | While Mined Diamond Sales Decline, The Future Of Lab Grown Diamonds Is Much More Than Jewelry

The First Round:

The city’s “Pitch & Pilot” initiative (part of their “SmartCityPHL” initiative) seeks tech solutions to track waste generation and promote diversion from landfills and incinerators. 

Philadelphia’s “SmartCityPHL” initiative:

• established to reach the city’s zero waste goal
• emphasizes community engagement and the use of technology to solve problems raised by citizens and businesses
• available to companies of all sizes
• first round initiative winner receives $34,000

Smart Cities Dive | Philadelphia’s first ‘Pitch & Pilot’ seeks tech to reduce waste 

Data: 

• More than 1,400 climate-change law suits have been filed against governments and corporations
• More than 1,000 of these suits were filed in the U.S. 

The ExxonMobil Case:

New York and Massachusetts joined forces in New York’s lawsuit against ExxonMobil. The states claim Exxon misled shareholders about the threat of climate change to their business. 

The New York’s highest court ruled for Exxon after a four year investigation.

Key Takeaway: 

Companies are wise to be transparent about the impact of climate change on their business. Investors expect that data in addition to reports on how they are preparing for a more sustainable future.

Canada’s National Observer | Climate litigation is on the increase and companies need to take notice

The App:

PAK – Planned Acts of Kindness has been nominated for United Nations NGO status

How it Works: 

Players are challenged to complete a simple act of compassion which is tracked on a leaderboard. Players level up to become eligible for real world prizes.

Examples of Acts Tracked:

giving way to strangers on the street, smiling at strangers, waving, buying a coffee for the person in line behind you

App’s Goal:

make people feel good so they can build that out into society

EuroNews | Gamifying Kindness: ‘Why a positive energy app can change the world’

Why? 

With accusations of “green or impact washing” on the rise, consumers & investors are demanding more transparency.

Etsy:

• provided a detailed sustainability report based on SASB standards in SEC form 10-k 
• engaged auditor PwC to provide sustainability reporting
• commissioned a third party to attest procedures on its carbon and energy metrics

Vornado Reality:

• 1st company to report on sustainability through SEC form 8-k
• included included detailed GRI and SASB reports in 8-k form

LeapFrog:

• 1st impact investor to conduct an independent audit of impact against the Operating Principles for Impact Management
• report led to company being called an “exemplification of industry best practice”

Forbes | Finally A Way To Assure Sustainability And Impact! Vornado, Etsy, And LeapFrog Lead The Charge

“Pulsed Laser Cleaning”: 

Any glass surface of the vehicle will be cleaned with lasers that will not affect the occupants’ eyes.

Why?

Tesla’s mission is to accelerate the transition to sustainable transportation. 

Removing the need for wipers is more sustainable and improves the current inefficiencies of windshield wipers.

Public Patents: 

Tesla is chooses to make patents open-source so the company’s sustainable ideas can quickly make it to mass market.

The Independent | Tesla Wants to Replace Windscreen Wipers with Lasers

Proof:

• Share prices for firms with 20% women in manager positions have higher returns over the past decade.
• Top 1/3 of gender diverse companies experience a 2% higher return than competitors.
• Wealth Management companies are refocusing investment strategies to require a certain number of women on boards before making investments.

Gender Diversity on Corporate Boards:

• 64% of companies report board member gender diversity
• 47% increase of women on boards

Relevant Legislation:

California legally required publicly traded companies to include at least one woman on their board by the end of 2019. The number of required women board members will increase in 2021.

American Banker | Diversity & Inclusion Yields Better Financial Performance

Who? 

631 investors representing over $37 trillion USD in assets signed on.

Investor Concerns:

Increased action to accelerate global low carbon transition and provide access to cleaner energy for all is required for the resilience of the global economy. Full Statement here.

What do They Want? 

Phasing out thermal coal power, ending subsidies for fossil fuels, and updating and strengthening nationally-determined contributions to meet the goals of the Paris Agreement.

UN News | COP25: Global investors urge countries to meet climate action goals 

Who:

General Motors and LG Chem

What:

A new joint venture to invest $2.3 billion to establish a battery cell assembly plant which will create more than 1,100 new jobs in Ohio.

Goals:

To meet their goal of all electric vehicles in the future, the JV will build a state-of-the-art plant to produce advanced battery technology more efficiently, with less waste and less cost.

CSR Wire  | General Motors and LG Chem Team Up to Advance Toward an All-Electric Future, Add Jobs in Ohio

An Increase in E-Waste: 

Rapid demand for newer, faster computers, smart phones, desktops, and laptops results in a reduction of electronic lifespan. 

The Business of Refurbishment: 

The UK IT resale market is worth $460 million. 

Old computers, phones, refrigerators, and microwaves are refurbished or disassembled for parts that can be made into other equipment such as vacuums or coffee machines.

Complications for Recycling Tech:

• Computers are not designed to be reused or recycled.
• China has stopped accepting hard plastic from computers.
• Used computers must be wiped prior to resale.
• The smaller, thinner devices are more difficult to refurbish.

The Financial Times | Why ‘zero landfill’ remains a distant dream for computers

What: 

Canadian study of 66,000 employees found giving back resulted in increased employee motivation and other benefits.

Employees Who Feel Good About Their Company Are More Likely to:

• stay at the company (18%)
• share good feelings about the company (45%)
• put in more effort (83%)
• feel valued (57%)

Companies With the Largest Community Investment:

• saw a 19% increase in revenue
• saved costs with reduced turnover
• increased qualified job applicants 

Triple Pundit | 66,000 Employees Have Spoken: They Want To Work For Companies That Give Back

Gen Z: 

• will represent more than 40% of all consumers by 2020
• are more than 40 million in the U.S.
• most diverse generation in history

Why CSR Matters:

Gen Z has a decreased trust in business for 3 reasons: (1) growing up during recessions, (2) fractured politics, and (3) frequent job changes of their parents.

• 42% have begun relationships with businesses they believe to have a positive social impact
• 37% have abandoned businesses they believe are unethical
• 65% research the origins of the products they buy

What Gen Z Values Most:

• gender equality 
• ethical practices 
• CSR that is fully integrated into corporate culture & business models

Digital Media Solutions | Brands That Implement Social Responsibility Will Connect With Gen Z

Who:

The Hyatt Regency Amsterdam and local brewery Lowlander

How:

Lowlander collected as many trees as possible, stripped the spruce, and brewed them into a sustainable 5% white-style IPA.

Why:

The Hyatt GM realized that 2.5 million Christmas trees were sold in the Netherlands, most of which went to the dump. 

The hotel holds the highest possible sustainability assessment score.This project aligns with their corporate values.

The Good: 

Lowlander is partnering with the Adopt a Tree foundation and the Hyatt is donating 5 cents from each beer sold to grow sustainable, organic tree forest.

Fortune | How Last Year’s Christmas Trees Became This Year’s Seasonal Brew 

Why Now?

Two NHL coaches have recently been accused of physically abusing players and using racial slurs.

NHL’s Response:

“Unequivocal” zero-tolerance for abusive behavior of any kind

Actions Taken: 

• “Severe discipline” when teams fail to report inappropriate behavior to club personnel 
• “Swift and severe discipline” for those involved in future or past incidents
• Mandatory, annual diversity and inclusion counseling for NHL coaches and GMs
• The formation of a disciplinary counsel

SportsNet | NHL to create program for coaches on diversity and inclusion 

CSR Stats:

• 40% of a company’s reputation is corporate responsibility  
• “Company mission and values” are the No. 1 reason (33%) new MBAs choose to work for one company over another

Examples of CSR Gone Wrong:

• CVS lost $2 billion/year when the company stopped selling tobacco 
• Campbell Soup reversed the decision to reduce salt in many soups when sales dropped 32%

How to Avoid These Mistakes:

• Weave CSR into the way the company does business
• Ensure the CSR program aligns with the values of your audience/customers
• Consider CSR to be a tool to ensure the company’s long-term success

Areas that Benefit from Authentic CSR:

• Investor Relations – The largest portfolio managers consider ESG information when choosing stock
• Human Resources – CSR grows recruitment, leads to higher levels of productivity and employee retention
• Public Relations – CSR is an offensive and defensive weapon to stay ahead when  a company has been criticized, and generates good news to dilute bad news.

Newsweek | Business Have Been Practicing Social Responsibility For Decades, But Is That Really A Good Thing? 

What is “VTO”? Volunteer Time Off

Texas Rocking It.

27% of Austin population volunteers weekly and Houston is a top city for volunteer hours

VTO Across Industry:

• Most Common Industries Incorporating VTO policies are professional services, informational technology and financial services and insurance 
• Average VTO allowance is 20 hours/year
• Top States: California, New York, Missouri, Texas
• Top Companies: Google, Intuit, Autodesk, American Express, Goldman Sachs, AT&T, Camden, David Weekly Homes, Edward Jones

patch.com | Volunteer Time off Trends in Texas and Around the U.S.

Current CSR Requirements:

Consumers, investors, financing sources, and supply chain buyers request CSR reports and ESG disclosures.  More requests for third-party certifications.

Why Spend $ to Verify CSR?

• Consumers prefer it.
• It meets sellers sustainability requirements.
• Private and public companies already face evaluation/ranking from ESG databases.This information can be used by competitors.

Benefits of 3rd Party Certification:

• Discovery of collateral exposure that affects profitability 
• Early detection of non-compliance conditions 
• Qualifying a company for specialty insurance 
• Companies with verification out-compete their competition, show better overall legal compliance, and benefit from a higher degree of employee productivity and satisfaction.

CFO.com | Companies Face Demand for Third-Party CSR Certifications 

Key Takeaway: 

Technology is important for scaling solutions, turning information into action, and creating capacities for collaboration.

Tech Helps Scale Sustainability.

Corporate sustainability programs must scale for greater impact. AI and machine learning offer insights to necessary adjustments humans are unable to calculate.  

Long-Term Impact: 

Companies never will have the time or resources to simultaneously solve every ESG problem. Technology can prioritize which actions have the greatest net impact.

Tech Collaboration for Solutions.

Although the tech industry is extremely competitive, companies like Salesforce have begun sharing their sustainability tech.

greenbiz.com | How Salesforce, Google, others use tech as a ‘force multiplier’ in sustainability innovation