Social Impact

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,

CNN Business | There are just four black CEOs of Fortune 500 companies. Here’s how they are addressing the death of George Floyd

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

The Detroit News | “Let’s stop asking ‘why’ and start asking ‘what:’ automakers write employees in wake of George Floyd death

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

Cornell announces moratorium on fossil fuel investments

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

EDF + Business | CalSTRS says climate is major portfolio threat, companies must walk the walk on net-zero

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

Market Watch | Wells Fargo Names Nate Hurst to Lead Corporate Responsibility, Philanthropy, and Sustainability Efforts

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 8^th annual Australian customer loyalty and loyalty program research study, For Love or Money^TM 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

Insider | Selena Gomez’s makeup brand is hiring a ‘director of social impact’ to tackle the impossible standards of the beauty industry

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

Who: Social Distancing Perks 

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.

Notre Dame News | Firms perceived to fake social responsibility become targets for hackers, study shows

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

Southwest Indiana Chamber | CenterPoint Energy Foundation announces $1.5 million COVID-19 Relief Fund

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.

Red Green & Blue | The Coronavirus Pandemic Could Give Business Leaders a Broader Mandate for Sustainability

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

Cal Matters | Bold investments in clean energy and transportation infrastructure will help lead us out of a recession

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

CNBC | Aureus Asset Management Op-Ed | Investors will reward companies that take care of others in the coronavirus pandemic

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

Dallas Morning News Opinion | If you imagine that a local business making surgical face masks is working 24/7, guess again

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.”

San Francisco Business Journal | How the new definition of corporate purpose is reshaping today’s businesses – an executive discussion

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?

1. Diesel generators are used as a backup but this creates more carbon emissions.
2. 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

Consumers & Beauty Industry Watchdog Spur Social Responsibility During COVID-19 Outbreak

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

Climate Change & Coronavirus

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 Looking Toward ESG

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

Texas Biotech Testifies on COVID 19 Before House Public Health Committee

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 

Twice the Number of Companies Responsibly Sourcing Cotton

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 

Olympics Carbon Positive After 2030

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 

Stinky Fruit Could Charge Your Cell Phone

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 Energy Serving 420 Million Users

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 

Volvo Construction Equipment (CE) Pennsylvania Campus Now Zero-Waste

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

Overwhelmed by “Carbon Neutral” Pledges? There’s a Certification for That.

“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 

Virginia Sets Timeline to Close Fossil-fuel Plants

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 

Millennials Are All About (Environmental, Social, Governance) ESG Investments

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 

Washington State Carbon-Neutral by 2050

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 

GM’s Secret Weapon to a PROFITABLE All EV Future

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

European Commission Unveils Climate Action Law

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 

Half of Global GDP Under Net Zero Emission Targets

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 

New Runway at Heathrow Ruled Illegal Due to Lack of Climate Consideration

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

The European Union (EU) Creates Taxonomy to Systematically Classify Sustainable Activities

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? 

Porsche Cements Funding for Battery-Powered Vehicle with “Green” Investors

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 

SEC Asks for Comments on ESG Fund Names

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 

Growing Bi-Partisan Support for Carbon Capture Legislation

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

Switzerland Pledges Carbon Neutrality by 2050

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

10 Years in, Austin’s “Zero-Waste” Progress

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 

Serious Competition for Tesla

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

JetBlue Closes Sustainability-linked Loan

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

Baltimore Develops a “Zero Waste” Plan

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

Green Mountain Energy Invests $200k in Houston Housing Nonprofit

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 

Women’s Clothing Brand to Lend Clothes for the Campaign Trail

“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. 

Environmental Impact of Farming Cut in Half by USDA

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 

European Union (EU) Investing BIG in Climate Projects

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

New York State Pension Spends $800 million in Climate-Related Investments

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 

BP: Carbon Neutral by 2050

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 

1000+ Global Firms Support Voluntary Guidelines Disclosing Investment Risk from Climate Change

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 

Self-driving Cars Coming to Houston

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 

Bezos Steps Up on Climate Action

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

Third-party Platforms Provide Sustainable Fashion Information

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 

Super Bowl Ads Focus & Corporate Social Responsibility (CSR)

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 

U.S. Senate’s First Major Climate Legislation of 2020

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

Retail Stores to Add Loop Products

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

Tech Companies Top the List of Renewable Energy Buyers

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