Companies discuss the lessons to be learnt from CSR industry initiatives On 5 June, the Ethical Corporation Institute (ECI) announced the publication of a new report, ‘Guide to Industry Initiatives in Corporate Social Responsibility’, which takes an in-depth look at identifying the right multi stakeholder initiatives for companies. The report outlines what different CSR initiatives are being undertaken, lessons learnt from nineteen multinational corporations and includes detailed studies on five multinational corporations. For example, the report cites IKEA, who outline how membership of the Better CottonInitiative gives them access to an invaluable source of learning and guidance on sourcing. The report aims to help companies understand how they will benefit from joining an initiative, how to distinguish between well and poorly run initiatives, and what to consider when selecting an initiative. Contact: Ethical Corporation www.ethicalcorp.com
Coca-Cola uses small firms for distribution in Africa Coca-Cola’s approach to distribution in Africa – the Manual Distribution Centre (MDC) programme – is hailed as being both good for the company and good for international development in a recent report published by the company along with the CSR Initiative at the Harvard Kennedy School and the International Finance Corporation. Coca- Cola’s approach to distributing its products in hard-to-reach urban and peri-urban areas in Africa utilises small businesses that deliver Coca-Cola products manually to local smallscale retailers. The MDCs account for over 80% of the company’s sales in East Africa while creating small-business ownership opportunities and jobs for an increasing number of first-time entrepreneurs and women. To date, the Coca-Cola system has created over 2,500 MDCs in Africa employing over 12,000 people and generating over $500 million in annual revenues. Contact: The Coca-Cola Company www.thecoca-colacompany.com
NASDAQ OMX and CRD Analytics launch new index On the 15 June, the NASDAQ OMX Group and the CRD Analytics introduced the NASDAQ OMX CRD Global Sustainability 50 Index. The index enables investors to track the performance of companies, in real time, that are taking a leadership role in sustainability performance reporting. These companies have voluntarily disclosed their carbon footprint, energy usage, water consumption, hazardous and non-hazardous waste, employee safety, workforce diversity, management composition and community investing. Contact: NASDAQ OMX www.nasdaqomx.com
Carbon Trust makes green loans more accessible for SMEs On 29 June, the Carbon Trust revealed it has revamped its £100 million green business loan scheme in an attempt to make it more accessible for small and medium-sized businesses. The scheme, which offers businesses interest-free and unsecured loans to help fund spending on energy-saving technologies, has been extended, with the minimum loan amount being cut from £5,000 to £3,000. The maximum loan size has been doubled to £400,000. Contact: Carbon Trust www.carbontrust.co.uk
PepsiCo joins Ceres network of companies PepsiCo announced on 22 June that it has been approved as a member of Ceres’ corporate network. As a Ceres member, PepsiCo will be among more than twenty five Fortune 500 companies that have joined Ceres, a leading coalition of investors, environmental groups and public interest organisations working with companies to address sustainability challenges such as global climate change. Contact: PepsiCo www.pepsico.com
Cisco’s telecommute scheme cuts costs and emissions On 25 June Cisco announced the findings of its Teleworker Survey, conducted to evaluate the social, economic and environmental impacts associated with telecommuting. The study revealed that teleworking is as good for the company as it is for employees, with a number of benefits resulting from its flexible work programme. The company’s workforce now telecommutes an average of two days per week, resulting in a more productive, engaged workforce as well as generating significant savings for the company. Cisco’s strategic consulting arm found that the company has saved $277 million by allowing employees to telework. In addition, teleworking decreased Cisco’s company-wide emissions by more than 47,000 tonnes through reduced travel. Contact: Cisco Systems www.cisco.com
Aligning corporate reporting with climate change costs The Climate Disclosure Standards Board has issued a proposed framework that would align corporate reporting of climate change with principles and objectives of financial reporting rules. The exposure draft of the framework seeks comments by 25 September 2009 from business, investors, the accounting profession, and regulatory agencies, so that the findings can be updated in advance of the UN Climate Change Conference in December. The proposed framework uses the Corporate Accounting and Reporting Standard developed by the Greenhouse Gas Protocol (GHG Protocol) as its basic emissions reporting standard and is designed to provide investors with information that will help them assess the affect of climate change on corporate performance. Contact: Climate Disclosure Standards Board www.cdsb-global.org
Camelot leads the way in responsible gaming UK National Lottery operator Camelot has received certification of alignment with European Responsible Gaming Standards – part of a responsible Gaming Certification Framework established by the European Lotteries Association. Camelot’s certification confirms its commitment to setting and maintaining the highest standards of responsible gaming in the UK gambling industry, as well as in the lottery sector worldwide. Contact: Camelot Group www.camelotgroup.co.uk
Investment forum looks at economic value of biodiversity The European Sustainable Investment Forum (Eurosif) and oekom research jointly published a report, ‘Biodiversity Theme Report’ on 4 June, which examines the business risks and opportunities associated with loss of biodiversity. The report focuses on five industrial sectors considered particularly vulnerable: agriculture and food, extractive, paper and forestry, real estate and infrastructure, and tourism. The business risks associated with species loss and the restricted functional capacity of ecosystems include decreased availability of resources, the likelihood of regulatory action to protect environmental resources, increased prices and limited access to capital and insurance, an increase in trends toward ecologically responsible purchasing, legal action, and reputational damage. Contact: oekom research www.oekom-research.com
EPA files legal action against exporter of e-waste It was announced on 10 June that the US Environmental Protection Agency filed a Complaint and Compliance Order against EarthEcycle, the electronic waste handler for several charity e-waste collection events. Basel Action Network (BAN) tracked seven sea-going containers of the collected toxic ewaste to Hong Kong and South Africa after assurances were made by EarthEcycle that the waste would be recycled locally. The EPA complaint cites seven violation counts for illegal management and exportation of old computer monitors and TVs. Sarah Westervelt of BAN outlined how charities should “start seeing the hypocrisy in organising e-waste events that irreparably harm children and animals in developing countries, while their organisations try to protect children and animals here in the US”. Contact: Basal Action Network www.ban.org
UNEP FI signatories rewarded for sustainable banking ON 4 June, it was announced that five of UNEP Finance Initiative’s Signatories were rewarded for thinking and financing in a ‘green’ way, during the fourth FT Sustainable Banking Conference and Awards. The FT Sustainable Banking Awards were created to recognize banks and other financial institutions that have shown leadership and innovation in integrating social, environmental and corporate governance considerations into their operations. The winner for Sustainable Bank of the Year was Triodos Bank (Netherlands) whilst Itau Unibanco (Brazil) won the Emerging Markets Sustainable Bank of the Year award. Contact: UNEP Finance Initiative www.unepfi.org
Comment
Multinationals operating in developing countries are often acutely aware of the poverty on their doorstep. Many have established effective community investment programmes, frequently with a strategic focus, to help the local communities in which they operate with healthcare and education delivery. Programmes are often evaluated for their outputs and impacts. But how well do companies understand how their core business operations and supply chain contribute to the economic development of the countries they operate in?
It is still relatively rare for a company to measure the impact of its business in terms of the jobs and wealth it creates directly and indirectly through its production and distribution processes. But as Coca Cola’s recent study assessing the impact of its innovative distribution model in Africa demonstrates, the findings can be hugely informative in understanding and growing the business. An economic impact assessment of this type provides an excellent management tool for mapping where job creation potential is greatest and how to expand into hard-to-reach markets to drive sales growth. It also serves as an excellent channel for engaging with external stakeholders such as governments, regulators and NGOs on the wider economic development agenda.
So with significant business benefits on offer, why aren’t more companies undertaking assessments similar to Coca-Cola’s study? On the face of it, an assessment of a company’s economic impacts can seem daunting. Data collection, particularly in countries where systems are less sophisticated, can present challenges. Added to that are the resource requirements and the technical expertise needed to measure in a credible way the contribution to the wider economic development agenda.
These challenges can be tackled and successfully overcome. They require a pragmatic approach to data collection using existing, readily available, management information. However, data alone will not tell the full story. An essential element must be interviews with the local managers, employees, suppliers, distributors and retailers. These are the people that really understand and experience the economic benefits first-hand.
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