Social Impact

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

Sustainable Headlights. 

Ford is using coffee chaff, the skin from a coffee bean that comes off during the roasting process, to make plastic headlamps of some cars. McDonalds connected Ford to their sustainable coffee bean suppliers.

Prior Headlight Production.

Ford used plastic and talc to make its headlamp housing

How’s this More Sustainable? 

The coffee headlights are lighter. Coffee chaff is widely available and doesn’t use talc which is not renewable and thereby not a sustainable source.

Ford’s Other Sustainability Efforts. 

The company has been working to incorporate more organic materials for a decade. They currently utilize soy, waste from wheat, coconut, tomato and other plants in its cars.

CNN Business | Ford and McDonald’s are turning coffee waste into car parts 

American Food Waste. 

If you pile up all the food that’s not eaten over the course of a year in the U.S., it would be enough to fill a skyscraper in Chicago about 44 times. Food waste emits methane in landfills and has been estimated to be responsible for 10% of greenhouse gas emissions.

Dairy Farmers to the Rescue. 

Farmers feed waste into anaerobic digesters along with their cow manure to capture the methane emissions and make renewable energy. 

Food Waste Supply.

Whole Foods grinds all types of food waste, from bones to vegetables and provides it to the farmers for their energy production.

Energy for All.

The farmers only use 10% of this energy. The rest goes into the grid which can provide additional income for the farmers.

NPR.org | Chew On This: Farmers Are Using Food Waste To Make Electricity 

Fashion Industry Concerns:

Currently millions of pounds of clothing are sent to landfills or incinerators annually in the U.S. alone. The industry is responsible for producing 10% of all greenhouse gases. 

An Increased Demand for Sustainable Clothing.

A Google search for sustainable fashion gets 280 million results.

Working Solutions:

• Sustainable Manufacturing
• Ethical Materials 
• Reduction in frequent fashion changes
• Use of recycling plastic for certain garments 

High Demand for 3D Printed Clothing:

Danish company, Son of a Taylor, uses an algorithm to create custom design garments which reduce fabric waste from 21% to less than 1%. 

The company began taking orders for a 3D printed sweatshirt & reached its Kickstarter fundraising goal of $15,000 in 40 minutes.

Forbes | From Recycled Plastic To 3D Printing: More Creative Solutions For Sustainable Fashion

Consumer Mindset: Individual responsibility for sustainability is strong. However, over the past 10 years consumers have become more knowledgable and now look for big change from companies and governments.  

Stats: 

• sustainable products = 17% of the consumer packaged goods (CPG) market
• 51% of consumers purchase a sustainable product because “they are better for the earth/environment” 

In 2019 Seals/Certifications Make a Difference: 

• 5% increase in consumer purchase motivation with a “Fair Trade” seal
• 9% increase in consumer purchase motivation with “Rainforest Alliance Certified” 
• 8% increase in consumer purchase motivation for certified carbon neutral products 

FoodNavigator-USA.com | The Hartman Group: How are consumers talking about social responsibility and sustainability? 

Corporate Leadership Trend:

• All time high CEO turnover in the top 2,500 global companies
• Ethical breaches are now the leading cause for involuntary dismissal

Why the Change?

• CEOs are less autonomous, requiring more board approval. =
• Misdeeds are now more difficult to hide with a public focus on sustainable & ethical business. 
• The August 2019 Business Roundtable statement has increased ESG expectations for companies

Key Takeaway:

Current consumer trends mean corporate perception is just as critical to success as financial achievement. CEOs who only worry about financial returns are becoming archaic.

Boston Business Journal | CEOs, accountability, and a new standard of corporate governance

The Issue: 

Experiments with AI-based recruitment find that automated recruitment discriminates against women and those with African-American sounding names.

The Cause:

White, male coders are inadvertently coding their bias into the algorithms.

Who is Trying to Solve This?

• Chief Executives for Corporate Purpose 
• Salesforce CEO, Marc Benioff
• Congress

Proposed Solutions: 

• CSR teams collect social impact data to counter potential AI bias
• The Algorithmic Accountability Act which forces companies to audit AI for bias prior to use.
• Companies can hire teams of computer scientists, sociologists, anthropologists, legal scholars, and activists to develop more fair and accurate data.

Harvard Business Review | Is AI Bias a Corporate Social Responsibility Issue?

Which Companies?

Apple, eBay, Samsung Austin Semiconductor, and Sprint

White Mesa Wind Project

• a wind farm owned by Apex Clean Energy
• midway between San Antonio and El Paso
• expected to come online in 2021
• 500-megawatts

Why Buy Energy Together?

By pooling their energy demands, the partners lower costs for each other and bring more renewable energy to be brought onto the grid.

What This Means for Texas: Despite being the top wind-energy producer in the country, Texas has a reputation for avoiding environmental solutions. This  step by private industry is a step toward changing that reputation.

Triple Pundit | Four High-Tech Companies Unite to Buy Wind Energy in Texas

What is it?

The new department replaces the former Human Resources unit and has been allocated $942,111 to promote cultural awareness and equity in municipal services as well as enforce non-discrimination and civil rights laws.

Who:

Christina Brooks, formerly the Diversity & Inclusion Officer and LGBT liaison in South Bend, Indiana, the home of openly-gay Democratic presidential candidate Mayor Pete Buttegieg

Brooks’s Specific Experience:

• established a community program for men of color and police officers to interact
• SB ID program to provide immigrants an ID card for access to city services
• “restorative justice” program for the mental wellness of neighborhoods

The Texan | Fort Worth Moves Forward With $1 Million Taxpayer-Funded “Diversity and Inclusion Department”

Stats: 

• 1/3 of all agricultural land produces food that is lost during the production or consumption phase (1.3 billion metric tons of edible food)
• industrialized countries lose $680 billion in lost/wasted food
• developing countries lose $310 billion in lost/wasted food

Governments Tackling Food Waste:

The U.S. Government announced the Food Waste Reduction Alliance to formalize a collaboration between a federal agency, food manufacturers and the restaurant association = to reduce food waste 50% by 2030.

Vatican City hosted a summit on reducing food waste.

The Causes:

• poor climatic conditions which reduce farm capacity 
• improperly stored food
• eating habits

The Solutions:

• personal changes like decreasing portion size, eating misshapen fruits and vegetables, and not fully stocking pantries
• rethinking expiration dates set by companies rather than health agencies 
• local governments can compost and sell the more productive soil to farmers
• better refrigeration in developing countries

TIME | We Are Wasting a Massive Amount of Food. Here Are 4 Concrete Ways to Change That

The Study:

Globe Scan’s Healthy & Sustainable Living Consumer Insights study surveyed 25,000 people across 25 countries. It was designed and launched with corporate partners such as IKEA, PepsiCo, Visa, and VF Corporation. 

Approximately 50% of American respondents consider each of the following issues to be “very serious”:

• environment/pollution 
• depletion of natural resources 
• climate change
• loss of biodiversity 
• fresh water storage

American Thoughts on Sustainability:

• 4 in 10 respondents say it is important for them to live in a way that is healthy for them and good for the environment. 
• 6% of all consumers claim to be living a completely healthy/sustainable lifestyle.
• Gen Z Americans are more concerned about environmental issues than older counterparts

American Obstacles to Sustainable Living: 

• 58% state sustainable options are “too expensive”
• 35% like they way they are living now, though not younger generations
• a stated lack of support and information from government/brands 

Green Biz | Consumers need more affordable access to healthy and sustainable living

2030 Employee Targets: 

• 50% of workforce to be women
• 25% of workforce to be Black, Hispanic, & Latino 
• 40% of leadership positions held by women & 15% held by Black, Latino, or Hispanic employees

How Dell Plans to Achieve These Goals:

• educating the hiring staff, leadership members, & employees about unconscious bias
• investing K-12 education financially & through STEM programs
• increase recruitment at historically black colleges
• have 95% of employees complete annual education programs on bias & harassment

What Michael Dell Says: “Unlocking the power of data will advance humanity more than any other force over the next decade. We are committed to making that power broadly available to communities around the world, so we can all move forward together.”

Austin American Statesmen | Dell says by 2030, it wants half of its workforce to be women

Where: India, Indonesia, China, Australia, Lebanon, Ethiopia

The Problem: Garbage around the globe amounted to 2.2 billion tons in 2016.

The Solution: “Waste-to-energy” plants burn garbage to produce energy. The global market for these plants will be $45 billion over the next 8 years.

What Opponents Say: Incinerators spew harmful chemicals into the air and have the potential to create toxic ash. In the U.S. incinerators are most common in low-income communities and communities of color. 

What Government Says: The plants lock cities into a contract requiring a minimum amount of waste or face a hefty penalty (7-8 figures) while plant operators seek favorable green energy tax benefits.

Key Takeaway: Waste to Energy Plants have the potential to greatly reduce landfill waste. Filters and scrubbers are being used at U.S. and U.K. plants to reduce the environmental concerns.

Ensia | As the world’s garbage piles up, controversy over waste-to-energy incineration continues

Teams with Inclusive Leaders are:

• 17% more likely to report high-performing status
• 20% more likely to make high-quality decisions
• 29% more likely to report collaboration

6 Traits of Inclusive Leaders:

• visible commitment to diversity & inclusion
• humility
• awareness of bias
• curiosity of others
• cultural intelligence
• effective collaboration

How Become a More Inclusive Leader:

• Schedule regular check-ins with staff & ask for feedback
• Be visibly committed to diversity & inclusion
• Seek out different opinions by offering those on the periphery the opportunity to speak up
• Track the success of your efforts & whether team members are following your lead

Harvard Business Review | Inclusive leaders are good for organizations. How to become one.

Standard Vodka Production: Utilizes starches for fermentation process requiring a lot of energy 

New More Sustainable Liquor Process Uses:

• carbon dioxide as an ingredient of alcohol rather than an emission
• an electric steam boiler that runs on solar energy 
• local suppliers for labels & bottles

Other Examples of Liquors Moving to Sustainability: 

• Absolut Vodka – 
  • takes leftover fermentation of wheat to feed 300,00 local pigs & cows per day
  • uses 40% recycled glass
• Macallan Distillery- 
  • 80% of heating from non-fossil fuels
  • working toward a zero waste to landfill goal by 2025
• Maker’s Mark & Jim Beam –
  • reduced water use per unit by 13%
• Diego’s Bulleit Distilling Company-
  • plans to use only renewable energy by 2030

Fortune | The Unconventional Methods Liquor Makers Are Taking to Be More Sustainable 

The Proposed Bill: “Zero Waste Omnibus Amendment Act of 2019”  proposed by Council Member Mary Cheh

Effects on Business/Local Government:

• Hotels & large restaurants required to provide reusable service ware
• Businesses:
  • responsible for sorting & composting organic waste
  • must sort recycling more carefully
    • Violations allow private collection companies to stop providing service
  • must participate in battery collection & recycling

Who Opposes It:

The Food Packing Industry

Who Supports It: 

• The Product Stewardship Institute 
• 9 of 13 council members have already signed on

Waste Dive | New D.C. zero waste bill would have major implications for composting and recycling

The New Policy: 20 weeks of paid leave to all parents, regardless of gender or caregiver status

What Motivated this Policy?

JPMorgan Chase paid $5 million to settle a class action case filed with the EEOC on behalf of fathers who claimed that they were denied the opportunity to take parental leave.

Other Banking Parental Leave Policies:

• Bank of America – 16 weeks paid leave regardless of gender or caregiver status
• Citigroup, Wells Fargo, Morgan Stanley, & JPMorgan Chase have different policies for primary & secondary care givers
• (International Bank) UBS Group AG – 26 weeks of fully paid parental leave for both parents

The Reality: More than 50% of fathers with these extended leave policies do not use it due to fear they will be perceived as not committed to their jobs. 1/3 worried about being fired.

Forbes | Goldman Sachs Has Upped The Ante For Paid Parental Leave On Wall Street

The Loan: €50 million over 5 years. Interest rates adjusted annually if sustainability targets achieved. 

The Sustainability Targets:

• # of stores with LEED Gold or Platinum certifications 
• employee sustainability training hours
• increased use of the company’s sustainable nylon substitute 

Prada’s Motivation: In combination with other sustainability initiatives, Prada hopes to demonstrate to customers that sustainability is key to their business.

Trend. Sustainability Loans: The sustainability-linked loan market has grown from $5 billion in 2017 to $40 billion in 2018, and is expected to grow as consumer and company awareness grows.

Vogue Business | Prada is first in industry to sign sustainability-linked loan

What: Microsoft conducted a trial in the Japan office that reduced the work week to 4 days.

Details of the Trial: 

• 4 day workweeks with pay for a full week
• 30 minute maximum for meeting times 
• 50% cut to standard meeting attendance
• Encouraged collaborative channels over meetings/emails

Beneficial Results: 

• 40% increase in productivity 
• 23% reduction in electricity costs
• during the 1 month experiment employees printed 60 pages less on average

Work Life Balance | The Trend:

• A New England company created the same trial in 2018 & found it so successful that they adopted the 4-day workweek permanently 
• France has granted employees the right to disconnect from email & phone calls after hours
• The U.K Labour Party has made a 4 day workweek part of its platform
• Since the 70s, worker hours have remained the same, despite an increase in productivity & a lag in pay

NPR.org | 4-Day Workweek Boosted Workers’ Productivity By 40%, Microsoft Japan Says

The Trend: Companies are embracing holistic employee wellness programs to increase employee satisfaction, retention, & productivity.

Examples of Holistic Employee Wellness:

• Hosting social events & safe programs for employees to express concerns & seek help for mental illness
• Providing financial advisors for retirement planning
• Incentivizing physical wellness via a step challenge or gym membership

Why CSR Matters to Employees: 

• Multiple studies show that giving back makes people feel better. 
• 74% of Gen Z workers believe that jobs should contribute more to their lives than a paycheck
• 46% say the ability to pursue passion as a key work motivator
  

How to add CSR to Employee Programs:

• Offer PTO for volunteering
• Utilize an app to match employees with volunteer opportunities 
• Give back by pledging 1% to the planet
• Partner with a local nonprofit
• Provide employees with an amount to donate to their charity of choice

Forbes | Why CSR Is The Missing Piece Of Holistic Employee Wellness

Key Takeaway: Business schools are offering classes on climate change, resource efficiency, & poverty mitigation.

The Motivation: 

• Demand by businesses & students for social good
• School accreditation bodies & MBA rankings now require CSR 

The Trend: 

• The Association of MBAs found that 2/3 of recent MBA graduates consider wider societal implications during decision making
• 750 management programs are using the Principles for Responsible Management Education program that focuses on balancing economic & social aims

Find MBE | Business education is going beyond the bottom line to teach students about issues such as climate change, resource efficiency and poverty mitigation

5 Details that Matter:

• Devote an entire navigational page to giving back, if it is a major part of your corporate identity
• Provide substantive data on your company’s efforts on environmental protection & sustainability
• Offer detailed facts & legitimate proof to back up your statements
• Be genuine by  finding a balance between humility & bragging
• Avoid overly complex terms 

Examples of Social Impact Communication Done Well:

• Wells Fargo
• Sempra Energy
• Timberland

Key Takeaway: Customers expect companies to be socially responsible & to share details about their efforts & impact on their website. 

Nielsen Norman Group | Social Impact and Sustainability on Corporate Websites

Key Takeaway: Sustainability is about more than environmental concerns. It should cIt can also create a corporate structure that’s equipped for longevity.

Building Corporate Longevity:

• Focus on Staff. Encourage employee retention by creating a space where employee communication and opinions are heard & valued
• Use Games. To engage Millennials & Gen Z create games for staff sustainability & reward their behavior 
• Get Serious About Diversity & Inclusion. Hire a diverse staff & host training courses in allyship so staff feel prepared to advocate on behalf of others

Take it from Google’s Engineering Site Director: “Healthy teams deliver on time. Healthy teams innovate. Healthy teams have more fun, & we [at Google] are all about working hard and having fun.”

Innotech Today | Tech Giants Tackle Corporate Social Responsibility – and You Can Too

What defines Fast Fashion? 

Retailers who’ve found success by quickly churning out fresh, low-priced styles that pull trend-seekers into stores. 

Problems Facing Fast Fashion:

• The clothing industry is responsible for about 10% of global greenhouse gas emissions
• Overproduction has led some brands to burn millions or even billons in unsold products

Customer Trends:

• In 2018 U.S. shoppers spent $128.5 billion on sustainable versions of quick-selling goods 
• 48% of Americans say they’d change their consumption habits to reduce their environmental impact 
• 53% of those ages 21 through 34 would give up a brand-name product to buy environmentally friendly
• Consumers & investors are turning to thrift & second-hand retailers 

Industry Response: In 2018 Burberry destroyed $38 million in unused inventory. Investors questioned the practice. Todaythe company recycles or donates these products in addition to implementing more careful production. Other retailers are following suit.

Los Angeles Times | Does fast fashion have to die for the environment to live? 

The Tool: As You Sow’s app.

What it Offers: The ability to search mutual funds or ETFs & a list of “top rated” funds, which earn the highest returns and the highest “grades”. The 6 search tools are:

• Deforestation Free Funds
• Fossil Fuel Funds 
• Gender Equality Funds
• Gun Free Funds
• Tobacco Free Funds
• Weapon Free Funds

The Demand for Such a Tool: Impact or sustainable investing considers a company’s environmental, social, & corporate governance (ESG). 85% of individual investors want to add these investments to their portfolios but have difficulty finding them.

Similar Options: 

• Your SRI 
• MSCI

CNBC.com | Use this free tool to see if your investments are sustainable

Why do it? Save money, reduce waste, & improve office culture

How:  Conduct an audit to determine the materials generating the most waste at your office then approach those first.

Common Areas to Reduce Waste:

• Lunchtime. Replace disposable cups & flatware with reusable options
• Precycle. Consider if a product is recyclable & how much waste it will create before you buy
• Go Digital. Encourage employees to send documents digitally rather than in paper format
• Education. Explain the new program & benefits to employees

Yahoo News | Day 11: Going Zero Waste at Work

Colorado’s Current Stats:

Recycling rate of 17.2%., below national average of 35%. 

Hurdles:

• Ensuring enough materials are entering the recycling markets
• Building infrastructure to handle increased recycling

Colorado Advanced Legislation. 2 Bills to Interim Committee: 

• Study how to use tax breaks to incentivize companies to convert recycled items into new products.
• Requires the state to create a proposal for statewide composting to improve soil quality.

Colorado Sun | Colorado is bad at Recycling, so lawmakers spent months looking for solutions. Here’s what they professed. 

Brand Perception: CSR is now a key factor in brand value and the target’s overall brand. 

Expectations: Customers, investors, and corporate buyers expect companies to take a visible stand on ESG issues. 

Consumer Trends: Millennials and Gen Z represent $150 B of U.S. spending power. They focus their spending on companies that invest in social issues and correct the sustainability issues within the fashion industry.

Fashion’s Efforts: This August, 32 Fashion Brands (currently up to 150) including Adidas, Hermès, Prada, & Chanel pledged to reduce their environmental impact via the Fashion Pact. LVMH, a large fashion group pledged to ensure full traceability for animal products by 2025.

law.com | The Impact of Corporate Social Responsibility on Fashion Brands

Breakdown of Public Trust: Large companies rank among LEAST trusted institutions (think U.S. Congress), while small businesses rank among MOST trusted (only below the U.S. military). 

Lack of Trust & Big Business: Without social license to operate large/multi-national companies risk consumer backlash & increased government regulations.

The Solution, Institutionalized CSR: Corporate citizenship provides large companies an avenue to prove they are like any citizen, and align their self-interest with the shared interests of society. 

Big Companies & Big Data: With access to big data and ownership of individual/business platforms, large companies must serve society via catalyzing global-scale solutions to climate change and other social issues.

Project Syndicate | Corporate Citizens Must Become Global Catalysts 

Of Note: 72% of people believe locally-owned businesses are more involved with their communities than large businesses.

The Small Business Advantage: Small local business owners

• see first-hand the most acute problems facing their local communities
• listen to customer needs before taking action
• understand their specific political climate and choose causes important to their clientele 

How Big Business can Adapt:

• Create organic, bottom-up community engagement programs
• Convey to consumers that the health of the community is part of corporate values
• Choose causes that unite rather than divide

Harvard Business Review | What Small Businesses Know about Corporate Social Responsibility 

Who did the Report? Chief Executives for Corporate Purpose

Volunteer Trends:

• 33% volunteer participation
• higher volunteer engagement rates with flexible volunteer hours are reported by companies
• 20 hours PTO to volunteer is average among companies surveyed

Giving Trends:

• corporate social investments increased by $26 billion (11%) since 2016
• international giving up 10%
• employee donation matches down 7%

Key Takeaway: 

Companies who measure community and business impact had highest giving and volunteer hours.

CSR Wire | Corporate Giving Tops $26 Billion in 2018, Industry-leading Report Finds, up 11% Since 2016

Key Takeaway: Complete commitment to social purpose can result in extreme profitability due to the ‘obliquity principle’.

The ‘Obliquity Principle’: Explains that complex goals are best achieved indirectly.  In business this translates to customers and employees feeling cared for, and caring for a business as a result. 

How one company (Eisai) achieved profit with complete social commitment:

1. Shareholders voted to replace profit-maximation with social purpose in their by-laws 

2. Eisai gives free drugs to WHO

3. Company maintains a market cap of $16.3B and 10,000 employees.

BRINK | Is Creating Social Value the Best Profit Strategy?

What to Provide: Non-partisan info on policy issues and elections

What it Means to Employees:

• Employees view employers as a creditable source of policy info
• 64% were more likely to vote
• 72% consider themselves more informed voters and citizens
• 72% believe their company cares about their community and is a good corporate citizen

The Benefits: 

• 70% would recommend their company as a place to work to a friend or family member
• 62% believe that that information fosters a stronger employer-employee relationship
• 57% believe that that information increased their understanding of the company’s mission and values
• 20% contacted a legislator based on info provided

Key Takeaway: 67% of employees want their employer to promote policies that are favorable to their industry and jobs. When provided with unbiased info on legislation, employees will vote to support their industry as well.

The Hill | The Business Case for Employer to Employee Engagement

Says Who: CEOs of Guardian Life Insurance & Global Philanthropy Group.

Why: 

• Large companies report college recruits expect stats on environmental stewardship, ESG investments, & diversity.
• Global Philanthropy Group, an organization which advises companies & high-profile individuals on socially impactful work, has noticed a difference in the way companies view CSR efforts.

Key Takeaway: To attract & retain top talent boards, CEOs, & HR departments are prioritizing social purpose.

Forbes | Social Purpose Is Imperative for Competitive Hiring Today, Executives Say

Why Battery Production Meets SDGs: More sustainable battery production can create 10 million new jobs & provide 600 million with access to electricity.

Levers for More Sustainable Batteries: 

• shared use of EVs
• spread of smart charging tech
• better refurbishment & repair
• repurposing & recycling used batteries

Key Takeaway: By implementing all levers, it is possible to achieve a 19-time increase in battery demand which would result in a 45% reduction in greenhouse gas intensity within the battery supply chain.

Sustainability Times | WEF shares a vision for more sustainable batteries

The Dilemma: The Ivory Coast & Ghana grows more than 60% of cocoa. The countries are threatening to suspend certifications that ensure chocolate was not grown on protected forests or with forced child labor.  

What They Want: A price plan to increase the price/ton for cocoa & give 70% of the increase (after costs) to farmers. 

Pros of the Price Increase:

• Sustainability conscious consumers increasingly demand certification.
• Paying the farmers a living wage is a more sustainable model of business.

Cons of the Price Increase: 

• Companies assume a big risk with the price increase. 
• Increased farmer pay incentivizes farmers to grow more cocoa on protected lands which could lead to unsustainable overproduction. 

San Antonio Express-News  | Chocolate makers face sustainability dilemma of farmers’ pay

Why CSR Increases Profits:

• 81% of millennials expect companies to make a public commitment to social good
• 3/4 of consumers are more likely to purchase from brands or do business with companies that are socially responsible

Keys to CSR:

• Clients – CSR provides a competitive edge, cultivates positive brand recognition, & increases client trust & loyalty  
• People – CSR creates a positive work environment, increases productivity, supports recruitment, retention, & employee satisfaction
• Community – Successful companies invest in the community which builds trust
• Corporate value- Direct data related to your impact

How to Create a Successful CSR Program: 

• Identify the strengths of the business 
• Consider customer & client values
• Ask for employee input
• Measure your impact

Boss Magazine | The 3 Pillars of Corporate Social Responsibility: Clients, People and Community

ESG Investing on the Rise:

• “ESG” was used 100% more on S&P 500 corporate earnings calls in the 2nd quarter of 2019 than the 1st quarter
• Globally ESG funds are estimated at $30 trillion
• Bank of America Merrill Lynch predicts up to another $20 trillion to be invested in ESG funds in the next 30 years
• ESG investments reduce volatility in downturns

What is Greenwashing? the practice of making statements or policies that appear more serious about ESGs than they actually are

Why it Matters: $$$. When ESG funds are reported to contain stocks that are not ESG friendly,  (aka greenwashing), stocks are quickly dropped from portfolios resulting in much lower rankings for funds & fund managers. 

What to do: To pick ESG winnersfact-check ESG claims until standardization of terms & transparency are more prevalent 

Market Watch | Opinion: For ESG investors, the newest challenge is separating fact from greenwashing

Barron’s | Why a Recession Could be Good for ESG Investors

The Survey: The Institute for Supply Management & Boise Paper assessed how sustainability is perceived & implemented by US-based supply management professionals. 

When did the Survey Occur? Summer 2019

Results: 

• 74% have sustainability goals in place
• 48% report that company sustainability goals are part of daily operations
• of 11 sustainability attributes, ethics & conduct, followed by health & safety are the top 2
• most supply mangers are willing to pay more for sustainable products 

Key Takeaway: As consumers demand increased sustainability, companies find that a track record in sustainability is linked to higher revenues, profit & company valuations.

PR Newswire | Survey: Sustainability a Driving Force for Supply Management

Why: 

• meet UN greenhouse emissions goals
• encourage the market to use greener products 
• encourage citizens to change their consumption habits
• improve how the city handles waste

Individual Responsibility: Each Montreal citizen would need to reduce their waste by 20 lbs/year.

The Plan: 

• public hearings to decide appropriateness of single-use items easier 
• reuse & donation of materials
• modernize  waste pickup 
• incrementally ban the throwing out of organic waste
• improve composting facilities
• reduce garbage pick-up

Cost: $8 million/year from 2020 to 2025 but the city estimates a $10 million savings in the cost or waste management

CBC | How the City of Montreal plans to go ‘zero waste’

Current U.S. CSR Situation: CSR is not required by U.S. statute or regulations but is treated as obligatory by most corporations due to customer demands & internal norms.

Of Note: 85% of companies on the S&P report on their ESG\Social Responsibility performance.

International Trends: The UN released the “UN Guiding Principles on Business & Human Rights”creating a transnational tort liability for corporations to 3rd parties. Companies should have “litigation ready” CSR programs.

Forbes | Can Corporate Social Responsibility be Legally Enforced?