How can companies select the most meaningful indicator to report, for example, their local economic performance? What’s a better way of stating economic contributions to a community than 'paid $X in local tax contributions'?
Indicators become more meaningful when they communicate the greater impact of their work, both positive and negative.
How about using these indicators such as:
- 'created demand for $X in local products'
- 'established a supply of products for local market worth $X/yr and growing'
- ‘investing in (or now competing with!) X local businesses’
- 'integrated X local suppliers into our global supply chain'
This is exactly what a few companies, such as SABMiller, Nestle and Unilever, have started testing.
Download a free summary of our research on how some companies are selecting impact indicators, and better understanding the environments they work in.
25 Aug 2010
11 Aug 2010
Survey suggests Canadian and American interest in CSR is growing
In some ways, corporate sustainability in North America lags behind Europe. Anyone with experience in corporate sustainability would agree that this recent Washington Post article pulls the sustainability debate in the US back a decade.
For corporate sustainability to progress in North America, stakeholder education about sustainability is obligatory, including awareness of the remit of sustainability professionals.
73 corporate sustainability professionals recently surveyed in Canada agreed with this requirement. Stakeholder awareness - especially among the general public – was the third biggest opportunity identified.
Top three opportunities identified by Canadians working in corporate sustainability:
1. Pursuing renewable energy & energy efficiency (22%)
2. Developing solutions to climate change (16%)
3. Generating public awareness (13%)
Top three challenges identified:
1. Climate change (27%)
2. Embedding CSR into strategy and operations (24%)
3. Addressing the needs of First Nations communities (11%)
Our upcoming briefing on the state of corporate sustainability in Canada indicates a significant boost in company commitments to sustainability, and progress is largely attributable to government commitment and legislation.
So, what do corporate sustainability teams spend most of their time doing?
They are not spending their time on charity or orchestrating great disasters as the Washington Post suggests.
According to our survey of 73 professionals in Canada and 147 in the United States:
Top three activities of CSR/sustainability teams in the United States:
1. Partnerships & collaboration tied with Reporting (33% each)
2. Performance measurement (27%)
3. Community engagement (22%)
Top three activities of CSR/sustainability teams in Canada:
1. Performance measurement tied with reporting (37% each)
2. Partnerships & collaboration (29%)
3. Community engagement tied with building corporate reputation (25% each)
There has also been a noticeable rise in strategic engagement of Canadian and American professionals, and a growing interest in working hand-in-hand with operational managers to embed sustainable practices across their company.
For corporate sustainability to progress in North America, stakeholder education about sustainability is obligatory, including awareness of the remit of sustainability professionals.
73 corporate sustainability professionals recently surveyed in Canada agreed with this requirement. Stakeholder awareness - especially among the general public – was the third biggest opportunity identified.
Top three opportunities identified by Canadians working in corporate sustainability:
1. Pursuing renewable energy & energy efficiency (22%)
2. Developing solutions to climate change (16%)
3. Generating public awareness (13%)
Top three challenges identified:
1. Climate change (27%)
2. Embedding CSR into strategy and operations (24%)
3. Addressing the needs of First Nations communities (11%)
Our upcoming briefing on the state of corporate sustainability in Canada indicates a significant boost in company commitments to sustainability, and progress is largely attributable to government commitment and legislation.
So, what do corporate sustainability teams spend most of their time doing?
They are not spending their time on charity or orchestrating great disasters as the Washington Post suggests.
According to our survey of 73 professionals in Canada and 147 in the United States:
Top three activities of CSR/sustainability teams in the United States:
1. Partnerships & collaboration tied with Reporting (33% each)
2. Performance measurement (27%)
3. Community engagement (22%)
Top three activities of CSR/sustainability teams in Canada:
1. Performance measurement tied with reporting (37% each)
2. Partnerships & collaboration (29%)
3. Community engagement tied with building corporate reputation (25% each)
There has also been a noticeable rise in strategic engagement of Canadian and American professionals, and a growing interest in working hand-in-hand with operational managers to embed sustainable practices across their company.
28 Jul 2010
Preliminary findings available on measuring social and economic impact
Preliminary findings are now available from our current research into how and why companies are measuring social and economic impact in vulnerable communities.
View these findings in the slideshow from a well-attended roundtable debate in London.
Thanks to all who attended and contributed to the debate.
View these findings in the slideshow from a well-attended roundtable debate in London.
Thanks to all who attended and contributed to the debate.
Live surveys on the state of CSR in Canada and the USA
If you are a corporate sustainability practitioner located in Canada or the USA, you're invited to participate in our sustainability surveys.
Canadian practitioners can click here.
American practitioners can click here.
Some findings will be shared with participants, and full country briefings will be published in September and October this year.
Thanks in advance!
Canadian practitioners can click here.
American practitioners can click here.
Some findings will be shared with participants, and full country briefings will be published in September and October this year.
Thanks in advance!
OECD's MNE Guidelines to get a boost on supply chains, human rights & environment
On the 1st of June the OECD continued it's long, consultative process for updating the Guidelines for Multinational Enterprises.
The OECD chose to strengthen the guidelines in response to stakeholder requests for a greater focus on human rights, supply chains and environment (a previous previous blog post links to these requests).
The consultation was based on discussion papers by John Ruggie, BSR and the OECD, each paper seeking to outline the core aspects of human rights, supply chains and environment.
The white papers and complimentary slideshows available on the OECD website provide a nice refresher for anyone working in one of these three areas.
Let's hope the final update of the Guidelines are able to reflect these core issues, and push businesses and governments to challenge the way they operate.
The OECD chose to strengthen the guidelines in response to stakeholder requests for a greater focus on human rights, supply chains and environment (a previous previous blog post links to these requests).
The consultation was based on discussion papers by John Ruggie, BSR and the OECD, each paper seeking to outline the core aspects of human rights, supply chains and environment.
The white papers and complimentary slideshows available on the OECD website provide a nice refresher for anyone working in one of these three areas.
Let's hope the final update of the Guidelines are able to reflect these core issues, and push businesses and governments to challenge the way they operate.
21 Jul 2010
CCC says UK growth is dependent on low-carbon funding
In the new report 'Building a low-carbon economy - the UK's innovation challenge', the prestigious Climate Change Committee warns that economic growth and progress towards climate targets are dependent on continued funding of low-carbon technologies.
The committee - comprised of nine distinguished scientists, economists, political scientists and an engineer - was asked by the UK's Chief Scientific Adviser, John Beddington to "review the adequacy of research and innovation arrangements in the UK related to achieving our climate change goals".
A strong recommendation emerged: the continued funding of green technologies, which the committee believes is sub-par relative to funding levels in other countries.
The report supports UK development and deployment of offshore wind, marine, carbon capture and storage (CCS) for power generation, aviation technologies, smart grids, and electric vehicle technologies.
It encourages research in hydrogen fuel cell vehicles, technologies in agriculture and industry, 3rd generation solar PV technologies, energy storage and advanced biofuels technologies.
Additional recommendations to the UK Government include longer-term climate change objectives (beyond 2020) and to quickly develop a clear strategy on climate change so that the necessary institutions can be supported or established.
The committee - comprised of nine distinguished scientists, economists, political scientists and an engineer - was asked by the UK's Chief Scientific Adviser, John Beddington to "review the adequacy of research and innovation arrangements in the UK related to achieving our climate change goals".
A strong recommendation emerged: the continued funding of green technologies, which the committee believes is sub-par relative to funding levels in other countries.
The report supports UK development and deployment of offshore wind, marine, carbon capture and storage (CCS) for power generation, aviation technologies, smart grids, and electric vehicle technologies.
It encourages research in hydrogen fuel cell vehicles, technologies in agriculture and industry, 3rd generation solar PV technologies, energy storage and advanced biofuels technologies.
Additional recommendations to the UK Government include longer-term climate change objectives (beyond 2020) and to quickly develop a clear strategy on climate change so that the necessary institutions can be supported or established.
Cameron plans to eliminate the Sustainable Development Commission
Contrary to David Cameron's pledge to lead the "greenest government ever", the UK Government plans to axe its sustainability watchdog.
The Sustainable Development Commission was established in order to advise government how to cut carbon emissions.
The Green Party is calling it an absolute disaster, and purports that public sector spending cuts are misdirected.
According to the Guardian, Caroline Lucas MP, the head of the Green party, called the move an "absolute disaster". "The Sustainable Development Commission has been a vital source of well-informed scrutiny of government policy. The commission has come out with very sensible proposals."
In a similar vein, the new Government has also failed to appoint a replacement CSR minister.
Given a shortfall of sustainability regulation, is removal of these positions likely to impact the level of corporate commitment to sustainability?
The Sustainable Development Commission was established in order to advise government how to cut carbon emissions.
The Green Party is calling it an absolute disaster, and purports that public sector spending cuts are misdirected.
According to the Guardian, Caroline Lucas MP, the head of the Green party, called the move an "absolute disaster". "The Sustainable Development Commission has been a vital source of well-informed scrutiny of government policy. The commission has come out with very sensible proposals."
In a similar vein, the new Government has also failed to appoint a replacement CSR minister.
Given a shortfall of sustainability regulation, is removal of these positions likely to impact the level of corporate commitment to sustainability?
13 Jul 2010
Reports of unethical findings in supply chains are aplenty
Unethical allegations
In Ethical Corporation's new briefing, Rajesh Chhabara, our Asia Editor, states “It’s a familiar picture. Dirty Clothes, a report in April 2010 by the National Labour Committee, a US-based rights group, accused a Wal-Mart and JC Penney supplier in Jordan of human trafficking and abuse of young women migrant workers from Bangladesh, Sri Lanka and India.”
Are supply chain scorecards helping?
Traditional supply chain scorecards have made a significant impact in areas such as strengthening the rule of law and ethical norms, but have under-performed in areas such as worker awareness and temporary worker inclusion.
How can this scorecard/audit approach be improved?
Success in prevention
Sustainability professionals and consumers alike are applauding pro-active measures taken by companies such as P&G and Wal-Mart.
The UN Global Compact hosts a website on common human rights dilemmas. Through case studies, the UN hopes to educate and encourage discussion within companies.
The UN also recognises leaders, recently recommending an M&S supplier in Sri Lanka, the Brandix Group’s ‘Green factory’ as a model of sustainable production.
P&G recently introduced their supplier code.
Wal-Mart made headlines with the introduction of their sustainability index and supplier assessments this year.
More and more companies are realising faster change by openly working with suppliers to address ethical challenges.
Further reading
Recent supply chain allegations have been published by watchdog organisations such as War on Want, an Australian television company, and major newspapers such as the The Guardian, and reports of garment worker deaths due to a fire in a factory in Bangladesh.
Each of the companies featured in these reports now devote significant attention to factory conditions and preventative measures.
Read more in our Briefing on Supply Chains.
7 Jul 2010
Fair trade for developed countries
Farmer Direct, a Canadian farmer-owned cooperative, is the first organisation to receive certification for a fair trade scheme that has been adapted to the needs of developed countries.
Why fair trade in developed countries?
Two farmers who have helped formalise the fairDeal explain the needs of workers and farmers in developed countries.
"People usually associate fair trade with coffee, sugar, bananas and other crops from the global south, but fair wages to farm workers and fair prices to farmers are just as much a concern in industrialized nations like Canada and the United States," explains Murray Horkoff a Farmer Direct Coop farmer-owner. "Now organic consumers can purchase fairly traded, flax, wheat, beans, hemp, peas, lentils and other crops grown in the Northern Hemisphere," adds Horkoff.
"Most of society is unaware that farm workers in many states and provinces are not protected under Federal, State or Provincial Labour laws. Since farm workers have no recourse under law they are often exploited. Therefore, organic consumers are now demanding organic foods that are fairly traded," states Keith Neu another Farmer Direct Coop farmer-owner. "We are proud to be able to offer certified organic, fairly traded food to these families."
About the fairDeal
Along with fair prices to farmers and living wages to farm workers the fairDeal, an organic industry supply chain non-profit and product seal, was founded to incorporate fair trade, pay equity and other additional ethical standards into organic agriculture.
The fairDeal is a nonprofit organisation that was developed through the collective efforts of a number of organisations in Canada and the US including the Agricultural Justice Project, RAFI and Farmer Direct Co-operative.
Farms are independently certified through Quality Certification Services, an independent auditing company with a long history of organic certification across North America.
For more information on the fairDeal is available on the Farmer Direct Coop website.
Why fair trade in developed countries?
Two farmers who have helped formalise the fairDeal explain the needs of workers and farmers in developed countries.
"People usually associate fair trade with coffee, sugar, bananas and other crops from the global south, but fair wages to farm workers and fair prices to farmers are just as much a concern in industrialized nations like Canada and the United States," explains Murray Horkoff a Farmer Direct Coop farmer-owner. "Now organic consumers can purchase fairly traded, flax, wheat, beans, hemp, peas, lentils and other crops grown in the Northern Hemisphere," adds Horkoff.
"Most of society is unaware that farm workers in many states and provinces are not protected under Federal, State or Provincial Labour laws. Since farm workers have no recourse under law they are often exploited. Therefore, organic consumers are now demanding organic foods that are fairly traded," states Keith Neu another Farmer Direct Coop farmer-owner. "We are proud to be able to offer certified organic, fairly traded food to these families."
About the fairDeal
Along with fair prices to farmers and living wages to farm workers the fairDeal, an organic industry supply chain non-profit and product seal, was founded to incorporate fair trade, pay equity and other additional ethical standards into organic agriculture.
The fairDeal is a nonprofit organisation that was developed through the collective efforts of a number of organisations in Canada and the US including the Agricultural Justice Project, RAFI and Farmer Direct Co-operative.
Farms are independently certified through Quality Certification Services, an independent auditing company with a long history of organic certification across North America.
For more information on the fairDeal is available on the Farmer Direct Coop website.
30 Jun 2010
Companies look beyond performance, and now measure impacts
Our analysts have been conducting in-depth analysis on companies are now measuring more than just performance and outputs. Leading companies wish to understand the true impact of their business on local communities, and communicate it to their stakeholders.
Our upcoming report focuses on an area of sustainability that is not well-understood by companies: how to measure socio-economic impacts.
Initial findings suggest that corporate communication and reputation-building needs are driving this interest in socio-economic impacts.
Find out more
On the 14th of July, the London Centre for Corporate Governance & Ethics and Ethical Corporation will be hosting a free roundtable debate on this topic. In August, a free summary of this report will be available here.
Our upcoming report focuses on an area of sustainability that is not well-understood by companies: how to measure socio-economic impacts.
Initial findings suggest that corporate communication and reputation-building needs are driving this interest in socio-economic impacts.
Find out more
On the 14th of July, the London Centre for Corporate Governance & Ethics and Ethical Corporation will be hosting a free roundtable debate on this topic. In August, a free summary of this report will be available here.
CEOs are more optimistic about sustainability than sustainability managers
In a United Nations Global Compact (UNGC) and Accenture study of 766 CEOs 93% believe that sustainability will be critical to their future success and 81% said that sustainability issues had become part of their company’s strategy and operations.
That's good news, but is it all talk?
Well, not necessarily.
78% of the CEOs say the downturn has actually raised the importance of sustainability - a term which has also come to incorporate the reliable provision of a company's products and services to communities. According to CEOs, sustainability is just good business, and it is being recognized as a source of cost efficiencies and revenue growth.
Consumer trust again emerges as the much-discussed driving factor. 72% of those surveyed said that "brand, trust and reputation" was a primary factor.
According to the study, consumers have become the most influential stakeholder - a title previously reserved for employees. 58% of the CEOs selected consumers as the stakeholders with the greatest influence, while 45% selected employees.
Government is the third most important stakeholder, selected by 45% of CEOs.
The most affirming news is that 54% of the CEOs surveyed think sustainability will be fully integrated into business worldwide within the decade, but 80% say it will happen within 15 years.
This view contrasts with the often pessimistic discussions that have emerged among sustainability managers at Ethical Corporation events. Perhaps top management is more committed than we think.
Read more about how companies are actually integrating sustainability at www.ethicalcorp.com/csr.
That's good news, but is it all talk?
Well, not necessarily.
78% of the CEOs say the downturn has actually raised the importance of sustainability - a term which has also come to incorporate the reliable provision of a company's products and services to communities. According to CEOs, sustainability is just good business, and it is being recognized as a source of cost efficiencies and revenue growth.
Consumer trust again emerges as the much-discussed driving factor. 72% of those surveyed said that "brand, trust and reputation" was a primary factor.
According to the study, consumers have become the most influential stakeholder - a title previously reserved for employees. 58% of the CEOs selected consumers as the stakeholders with the greatest influence, while 45% selected employees.
Government is the third most important stakeholder, selected by 45% of CEOs.
The most affirming news is that 54% of the CEOs surveyed think sustainability will be fully integrated into business worldwide within the decade, but 80% say it will happen within 15 years.
This view contrasts with the often pessimistic discussions that have emerged among sustainability managers at Ethical Corporation events. Perhaps top management is more committed than we think.
Read more about how companies are actually integrating sustainability at www.ethicalcorp.com/csr.
22 Jun 2010
Instant news service on corruption launched
Thomson Reuters, the well-known providers of instant information on global disasters, has today launched a similiar service on corruption.
TrustLaw is described as a global hub for free legal assistance and anti-corruption news and information.
Watch this site as its content develops. It may prove to be a rich source of country corruption information, case study analysis, updates on global anti-corruption conventions and free legal advice.
TrustLaw is described as a global hub for free legal assistance and anti-corruption news and information.
Watch this site as its content develops. It may prove to be a rich source of country corruption information, case study analysis, updates on global anti-corruption conventions and free legal advice.
When will sustainability rankings become more accurate?
Macleans recently published a list of the 50 most socially responsible companies with a strong presence in Canada.
Among the leaders are Adidas Group, Ballard Power Systems Inc., BCE Inc., BMO Bank of Montreal and BMW.
Some of their CSR practices are worth sharing. However, there are a number of critiques on their methodology. This is commonly the case with corporate ranking schemes.
Yes, it is good to recognise socially and environmentally productive activities. But it is time that we stop labelling a giant corporation as an overall sustainable leader based on a few activities.
It’s time we start rewarding companies that have embedded sustainable practices into their company’s strategy, operations and culture. At a minimum, let’s put a company’s praise into context.
Does such a ranking of ‘embeddedness’ exist?
Among the leaders are Adidas Group, Ballard Power Systems Inc., BCE Inc., BMO Bank of Montreal and BMW.
Some of their CSR practices are worth sharing. However, there are a number of critiques on their methodology. This is commonly the case with corporate ranking schemes.
Yes, it is good to recognise socially and environmentally productive activities. But it is time that we stop labelling a giant corporation as an overall sustainable leader based on a few activities.
It’s time we start rewarding companies that have embedded sustainable practices into their company’s strategy, operations and culture. At a minimum, let’s put a company’s praise into context.
Does such a ranking of ‘embeddedness’ exist?
16 Jun 2010
Water Footprinting versus Water Life Cycle Analysis
Water is the new environmental issue being discussed by businesses.
This does not mean that we can manage it in the same way we manage carbon emissions. Why? Well, because water is also a social and political issue.
So, how should companies measure water use, and use the findings to inform business strategy?
One camp supports the adaptation of Life Cycle Assessments (LCAs) to water
LCAs now have a standardised approach to measuring greenhouse gas emissions at the product level.
Advocates of LCA purport that we should not reinvent the wheel, and simply adapt this widely-accepted method to water.
Additional benefits of LCA for water include:
1. Quantifies impact and results in an absolute volume-based figure for which the method is more robust and incontestable
2. Allows stakeholders to benchmark competitors, and compare products irrespective of their industry or location
3. Focuses on direct impact only
4. Benefit from globally accepted method used for carbon that has clear timelines and budget estimates
In the other corner is water footprinting
Proponents for footprinting include organisations such as WWF and the Water Footprint Network.
Benefits of the water footprinting methodology include:
1. More inclusive as it includes direct and indirect water use along the value chain
2. Captures the full impact picture including type of water use, location, timing, temporal and local scarcity dimensions of water
3. Provides basis for local impact assessment and formulation of sustainable water use strategy
Here is an overview of the results of a recent water footprinting exercise, presented by WWF UK's Director of Corporate Partnerships at the 2010 Climate Change Summit.
These methodologies are not mutually exclusive. Hypothetically, a company could measure it's water LCA, and follow-up with a longer-term footprinting in order to place the findings into context, looking throughout the entire supply chain.
Read more about corporate water strategies at www.ethicalcorp.com/water.
This does not mean that we can manage it in the same way we manage carbon emissions. Why? Well, because water is also a social and political issue.
So, how should companies measure water use, and use the findings to inform business strategy?
One camp supports the adaptation of Life Cycle Assessments (LCAs) to water
LCAs now have a standardised approach to measuring greenhouse gas emissions at the product level.
Advocates of LCA purport that we should not reinvent the wheel, and simply adapt this widely-accepted method to water.
Additional benefits of LCA for water include:
1. Quantifies impact and results in an absolute volume-based figure for which the method is more robust and incontestable
2. Allows stakeholders to benchmark competitors, and compare products irrespective of their industry or location
3. Focuses on direct impact only
4. Benefit from globally accepted method used for carbon that has clear timelines and budget estimates
In the other corner is water footprinting
Proponents for footprinting include organisations such as WWF and the Water Footprint Network.
Benefits of the water footprinting methodology include:
1. More inclusive as it includes direct and indirect water use along the value chain
2. Captures the full impact picture including type of water use, location, timing, temporal and local scarcity dimensions of water
3. Provides basis for local impact assessment and formulation of sustainable water use strategy
Here is an overview of the results of a recent water footprinting exercise, presented by WWF UK's Director of Corporate Partnerships at the 2010 Climate Change Summit.
These methodologies are not mutually exclusive. Hypothetically, a company could measure it's water LCA, and follow-up with a longer-term footprinting in order to place the findings into context, looking throughout the entire supply chain.
Read more about corporate water strategies at www.ethicalcorp.com/water.
13 Jun 2010
Chinese consumer cynicism about corporate sustainability claims
Chinese consumers are becoming just as cynical as Western consumers about corporate green- and whitewashing (insincere environmental and social claims communicated by companies), according to the GlobeScan’s annual global tracking research.
The study, which interviewed over 30,000 people across 34 countries, finds that "while in 2005 more than 80% of Chinese consumers felt that companies communicated ‘honestly and truthfully’ about their social and environmental performance, this has now fallen sharply, with only 40 per cent feeling this way in this year’s study".
An increasing number of consumers are reading company sustainability pages. However, an even larger number of consumers (30%) look beyond company websites, to other online sources for information about a company's sustainability performance.
GlobScan also finds that the top-scoring green consumers of 2010 are in the developing economies of India, Brazil, China, and then Mexico.
Read more here.
The study, which interviewed over 30,000 people across 34 countries, finds that "while in 2005 more than 80% of Chinese consumers felt that companies communicated ‘honestly and truthfully’ about their social and environmental performance, this has now fallen sharply, with only 40 per cent feeling this way in this year’s study".
An increasing number of consumers are reading company sustainability pages. However, an even larger number of consumers (30%) look beyond company websites, to other online sources for information about a company's sustainability performance.
GlobScan also finds that the top-scoring green consumers of 2010 are in the developing economies of India, Brazil, China, and then Mexico.
Read more here.
UK DEFRA Chief Scientific Advisor explains the science of climate change
If you are given an opportunity to listen to Professor Robert Watson, UK DEFRA's Chief Scientific Advisor speak, take it!
Watson has the ability to captivate an audience and explain, in simple terms, the science behind climate change's impact on rising temperatures, increases water stress and more.
Here is a link to one of his many presentations on the science of climate change, and another on food security.
Watson has the ability to captivate an audience and explain, in simple terms, the science behind climate change's impact on rising temperatures, increases water stress and more.
Here is a link to one of his many presentations on the science of climate change, and another on food security.
A 60-second clip gets to the crux of the climate change challenge
WWF Canada gets straight to the point with this public advocacy clip, highlighting the need to change societal norms.
8 Jun 2010
Sneak peek into a new report on the CRC
Here's a sneak peek into the results from Ethical Corporation's research for the brand new, 2nd edition report 'The Carbon Reduction Energy Efficiency Scheme: How Companies Cut Carbon, Save Money and Meet Legal Compliance'. The report covers:
Insight into how the CRC was designed, such as…
The scheme has been designed so that, over the long term, the relatively high price of allowances will make it more cost-effective for all firms to invest in cleaner technologies, improved production processes and energy-efficiency strategies. In this respect, the cap-and-trade market structure provides an incentive for organisations to reduce their emissions.
Strategic approaches to trading, such as…
By identifying and separating out its emissions sources, a firm can plot a marginal abatement curve that enables the firm to develop the most cost-effective and efficient abatement strategy based on its existing emissions. Firms should only purchase CRC allowances if all the abatement opportunities have been exhausted. The market price of carbon would need to be lower than the cost of abatement or there would be no point in purchasing allowances.
Exemptions from the scheme, such as…
Subsidiaries of CRC organisations (or whole CRC organisations if no subsidiaries exist) are exempt if they can demonstrate that they have more than 25% of their relevant emissions covered by Climate Change Agreements.
Last-minute changes to the scheme, such as…
Principal subsidiaries have now been renamed to ‘Significant Group Undertakings’, and regulations have been made more flexible for this group. Subsidiaries that are large enough to qualify in their own right (over 6000MWh) may now opt to participate in the scheme separately from their organisation group. The caveat here is that organisations cannot opt to disaggregate a nominated SGU if this will bring their own energy consumption below the 6000MWh threshold.
Critiques of the scheme, such as…
The British Retail Consortium believes that the UK Government has failed to understand the business realities of franchising operations, arguing that franchisers have very little control over their franchisees’ energy management.
BT contests DECC’s decision to exclude renewable energy, requiring companies to report renewables at the average grid factor. Several other interviewees echoed BT’s concerns, yet most agreed why DECC seeks to avoid double counting of fuel credits.
A simple presentation of what is required by your company, and associated fines such as…
If your organisation is eligible for CRC, but has failed to register by the end of the registration period, you will have to pay a fixed fine of £5,000. Then, for each subsequent working day you fail to register, you will be fined an additional £500 per working day to a maximum of 80 working days, together with publication of non-compliance.
Expert opinions on the specifics of the scheme, such as…
The following quote by an Asda representative: “The problem with a league table is that it is open to abuse, in that companies that have taken no action to reduce their carbon outputs could take rapid action and be seen as progressive whereas those companies, such as Asda, that have a sensible plan to reduce carbon outputs could join the scheme and have an impossible challenge of further reducing carbon against those companies who have taken little action to date. For the measure to work effectively, credit must be given to work undertaken before CRCs came into effect.”
By the end of the week, you can download a free summary from www.ethicalcorp.com/crc.
Insight into how the CRC was designed, such as…
The scheme has been designed so that, over the long term, the relatively high price of allowances will make it more cost-effective for all firms to invest in cleaner technologies, improved production processes and energy-efficiency strategies. In this respect, the cap-and-trade market structure provides an incentive for organisations to reduce their emissions.
Strategic approaches to trading, such as…
By identifying and separating out its emissions sources, a firm can plot a marginal abatement curve that enables the firm to develop the most cost-effective and efficient abatement strategy based on its existing emissions. Firms should only purchase CRC allowances if all the abatement opportunities have been exhausted. The market price of carbon would need to be lower than the cost of abatement or there would be no point in purchasing allowances.
Exemptions from the scheme, such as…
Subsidiaries of CRC organisations (or whole CRC organisations if no subsidiaries exist) are exempt if they can demonstrate that they have more than 25% of their relevant emissions covered by Climate Change Agreements.
Last-minute changes to the scheme, such as…
Principal subsidiaries have now been renamed to ‘Significant Group Undertakings’, and regulations have been made more flexible for this group. Subsidiaries that are large enough to qualify in their own right (over 6000MWh) may now opt to participate in the scheme separately from their organisation group. The caveat here is that organisations cannot opt to disaggregate a nominated SGU if this will bring their own energy consumption below the 6000MWh threshold.
Critiques of the scheme, such as…
The British Retail Consortium believes that the UK Government has failed to understand the business realities of franchising operations, arguing that franchisers have very little control over their franchisees’ energy management.
BT contests DECC’s decision to exclude renewable energy, requiring companies to report renewables at the average grid factor. Several other interviewees echoed BT’s concerns, yet most agreed why DECC seeks to avoid double counting of fuel credits.
A simple presentation of what is required by your company, and associated fines such as…
If your organisation is eligible for CRC, but has failed to register by the end of the registration period, you will have to pay a fixed fine of £5,000. Then, for each subsequent working day you fail to register, you will be fined an additional £500 per working day to a maximum of 80 working days, together with publication of non-compliance.
Expert opinions on the specifics of the scheme, such as…
The following quote by an Asda representative: “The problem with a league table is that it is open to abuse, in that companies that have taken no action to reduce their carbon outputs could take rapid action and be seen as progressive whereas those companies, such as Asda, that have a sensible plan to reduce carbon outputs could join the scheme and have an impossible challenge of further reducing carbon against those companies who have taken little action to date. For the measure to work effectively, credit must be given to work undertaken before CRCs came into effect.”
By the end of the week, you can download a free summary from www.ethicalcorp.com/crc.
7 Jun 2010
Water stewardship surfaces as a top concern among sustainability professionals
Responsible water management has emerged as a leading concern among sustainability managers. 52% of sustainability professionals surveyed already list water stewardship as one of their company’s top 5 responsible business issues, while 99% believe that water concerns will become more of a priority for businesses in the next 5-10 years.
Ethical Corporation’s brand new report, Unlocking the Profit in Water Savings, 2nd Edition, explores how big companies manage water risk – and the business opportunities in doing so.
Many companies have made significant progress in their water management strategies. Since the first edition of this report in 2008, mainly more clear lessons and twice as many solid case studies have surfaced.
Several companies interviewed, such as Rio Tinto, now have ten years of experience to draw from.
Like carbon, the initial approach to water stewardship focuses on reduction. Efficiency and simple monitoring technologies provide quick wins, often realising a return on investment within one year.
Unlike carbon, corporate water management engulfs a host of direct social, economic and environmental risks. Degradation of community access, treatment and sanitation, ecosystems, scarcity and licenses to operate have become realities for many of the sustainability managers interviewed and surveyed.
A company’s water strategy depends on the specific risks and local issues confronting its operations, and determines where to focus its activities.
For more information:
Read about water management strategies from Whitbread, M&S, Unilever, Shell, SAB Miller, Coca-Cola, Molson Coors, Intel, Rio Tinto, and many more. Visit the report web page.
Listen to a podcast on one of our case studies. Toby Webb interviews Andrew Wales about water management at SAB Miller.
Ethical Corporation’s brand new report, Unlocking the Profit in Water Savings, 2nd Edition, explores how big companies manage water risk – and the business opportunities in doing so.
Many companies have made significant progress in their water management strategies. Since the first edition of this report in 2008, mainly more clear lessons and twice as many solid case studies have surfaced.
Several companies interviewed, such as Rio Tinto, now have ten years of experience to draw from.
Like carbon, the initial approach to water stewardship focuses on reduction. Efficiency and simple monitoring technologies provide quick wins, often realising a return on investment within one year.
Unlike carbon, corporate water management engulfs a host of direct social, economic and environmental risks. Degradation of community access, treatment and sanitation, ecosystems, scarcity and licenses to operate have become realities for many of the sustainability managers interviewed and surveyed.
A company’s water strategy depends on the specific risks and local issues confronting its operations, and determines where to focus its activities.
For more information:
Read about water management strategies from Whitbread, M&S, Unilever, Shell, SAB Miller, Coca-Cola, Molson Coors, Intel, Rio Tinto, and many more. Visit the report web page.
Listen to a podcast on one of our case studies. Toby Webb interviews Andrew Wales about water management at SAB Miller.
1 Jun 2010
Can volunteering be strategic or is it merely charity?
A few weeks ago, I was discussing the business case for volunteering with the Lord Mayor, City of London.
The City of London Corporation’s recent publication seeks to articulate the business case for volunteering.
Recent research by a number of organisations and academic institutions supports this case for volunteering. One challenge researchers face is that the impact of volunteering is usually indirect or induced. Cause-effect can be difficult to ascertain.
If you are looking to build a case for volunteering in your company, or tightening the connection between your volunteering programme and your bottom line, here are some statistics to help you:
2010 findings from the City of London’s ‘Volunteering – The Business Case’:
- The average annual cost to support each volunteer involved in an education based activity in London is £381 per person per annum. (This figure comprises the full cost including direct management costs and all additional costs involved in running an effective volunteering programme)
- 31% of organisations used volunteering as part of their strategy to address critical business issues.
- Over 60% agreed that volunteering builds teamwork skills in employees.
- Volunteers believe that they developed the following competencies:
66% communication skills
65% ability to help others
54% adaptability
45% influencing/negotiating
43% team working
41% leadership
41% willingness to improve
40% planning/organising
39% decision making
39% problem solving
39% fostering relationships and networks
The Institute for Volunteering Research conducted a 'Helping Out' study for the UK Cabinet Office in 2008. They found that:
1. 54% of UK employees who do not have access to a volunteering scheme, wish their employer had one.
2. The same study found 67% of UK volunteers felt satisfaction from their results.
3. 82% of UK employees said that having time off would motivate them to volunteer.
4. Where a volunteering scheme existed, 29% of employees volunteered.
5. Women are more likely to volunteer than men (64% vs 54%).
6. The biggest motivator for employee volunteering is having the ability to choose where to volunteer, followed by paid time off and the opportunity to build skills.
7. Employees of large UK companies are 47% more likely to have a work volunteer scheme.
D&T's 2007 Impact Survey found:
8. 62% of employees would prefer to work for a company where they can volunteer
According to the UK Home Office:
9. 11.1 m people involved in formal volunteering at least once a month are most likely to be involved in: organising or helping to run an activity or event (57%), raising or handling money (54%), leading a group/ being a member of a committee, giving other practical help (32%).
Do-It.org finds:
10. The most important aspect of volunteering opportunity is career training (36%), closely followed by wanting to make a difference (27%).
According to this study from Fidelity Charitable Gift Fund and VolunteerMatch:
11. Americans who volunteer their time and skills to nonprofit organizations donate an average of 10 times more money to charity than people who don't volunteer.
A 2009 Boston College publication shows:
12. The top three reasons American companies provide volunteering are PR, job satisfaction and team building.
13. Boston College has also published the drivers for volunteering effectiveness based on Fortune 500 companies. They found that one of the biggest drivers (36%) is having a culture of volunteering, which includes senior management volunteerism.
14. The college also designed a benchmarking tool for measuring the impact of volunteering.
A related area that lacks sufficient research is employee ethics. Recently LRN rightfully reported that most companies could do a lot more to encourage employees to do good on-the-job, not just off-the-job. One in three employees have left a company due to questionable ethics:
The City of London Corporation’s recent publication seeks to articulate the business case for volunteering.
Recent research by a number of organisations and academic institutions supports this case for volunteering. One challenge researchers face is that the impact of volunteering is usually indirect or induced. Cause-effect can be difficult to ascertain.
If you are looking to build a case for volunteering in your company, or tightening the connection between your volunteering programme and your bottom line, here are some statistics to help you:
2010 findings from the City of London’s ‘Volunteering – The Business Case’:
- The average annual cost to support each volunteer involved in an education based activity in London is £381 per person per annum. (This figure comprises the full cost including direct management costs and all additional costs involved in running an effective volunteering programme)
- 31% of organisations used volunteering as part of their strategy to address critical business issues.
- Over 60% agreed that volunteering builds teamwork skills in employees.
- Volunteers believe that they developed the following competencies:
66% communication skills
65% ability to help others
54% adaptability
45% influencing/negotiating
43% team working
41% leadership
41% willingness to improve
40% planning/organising
39% decision making
39% problem solving
39% fostering relationships and networks
The Institute for Volunteering Research conducted a 'Helping Out' study for the UK Cabinet Office in 2008. They found that:
1. 54% of UK employees who do not have access to a volunteering scheme, wish their employer had one.
2. The same study found 67% of UK volunteers felt satisfaction from their results.
3. 82% of UK employees said that having time off would motivate them to volunteer.
4. Where a volunteering scheme existed, 29% of employees volunteered.
5. Women are more likely to volunteer than men (64% vs 54%).
6. The biggest motivator for employee volunteering is having the ability to choose where to volunteer, followed by paid time off and the opportunity to build skills.
7. Employees of large UK companies are 47% more likely to have a work volunteer scheme.
D&T's 2007 Impact Survey found:
8. 62% of employees would prefer to work for a company where they can volunteer
According to the UK Home Office:
9. 11.1 m people involved in formal volunteering at least once a month are most likely to be involved in: organising or helping to run an activity or event (57%), raising or handling money (54%), leading a group/ being a member of a committee, giving other practical help (32%).
Do-It.org finds:
10. The most important aspect of volunteering opportunity is career training (36%), closely followed by wanting to make a difference (27%).
According to this study from Fidelity Charitable Gift Fund and VolunteerMatch:
11. Americans who volunteer their time and skills to nonprofit organizations donate an average of 10 times more money to charity than people who don't volunteer.
A 2009 Boston College publication shows:
12. The top three reasons American companies provide volunteering are PR, job satisfaction and team building.
13. Boston College has also published the drivers for volunteering effectiveness based on Fortune 500 companies. They found that one of the biggest drivers (36%) is having a culture of volunteering, which includes senior management volunteerism.
14. The college also designed a benchmarking tool for measuring the impact of volunteering.
A related area that lacks sufficient research is employee ethics. Recently LRN rightfully reported that most companies could do a lot more to encourage employees to do good on-the-job, not just off-the-job. One in three employees have left a company due to questionable ethics:
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