Trees seem to be popping up everywhere these days. In the last couple of months there have been announcements by companies such as Sky, and even luxury brands like Gucci, declaring commitments to protecting rainforests or planting trees. An understanding of biodiversity and integrated sustainability solutions seem to be making headway in the corporate world. Companies are recognising that planting trees and preventing deforestation will not only address carbon dioxide emissions concerns but also have a positive impact on water scarcity issues.
The launch of the Forest Footprint Disclosure Project – sister to the well established CDP, comes at a very opportune moment it seems. “Not another footprint!” I hear you scream, but the truth is that the use of commodities like soy, beef, palm oil and biofuels are part of often complex supply chains and contribute to deforestation around the world. The implications on people, planet and (as recently seen increases in food prices demonstrate) profits, are very real. The Independent newspaper found that 43 of the top 100 food products in the UK contain palm oil – all of them household names. Complex supply chains mean that often companies have little or no knowledge about the origins of raw materials; how can consumers then decide which products to support? Some companies, like Unilever, have championed the certification route which does go some way in differentiating products but this is a slow and largely voluntary process which means that take-up, though growing, is sporadic.
The FFD aims to make the process of understanding, and therefore addressing, the risks posed by association with deforestation more manageable. For companies to understand their own supply chains and mitigate the risks – regulatory, environmental and ultimately, reputational – means that concrete steps can be taken to reduce all our forestry footprints. For others, it means that the Orang-utan outfits can be placed firmly in the back of their closets.
Deepa is a consultant at Corporate Citizenship. Email Deepa at deepa.mirchandani@corporate-citizenship.com to discuss community investment, the London Benchmarking Group, Millennium Development Goals and impacts measurement
Environmentalism not seen as ‘core’ to businesses
Many businesses still see resource efficiency as a distraction from the core purpose of business, according to a new report published by the Sustainable Development Research Network (SDRN). SDRN, a policy studies institute funded by Defra and the Department of Transport, published the findings on October 1. The report calls for more ‘engagement’ with small and medium sized enterprises (SMEs) on resource efficiency and to get them to lower C02 emissions. SDRN also suggests intermediary organisations, such as banks, need to promote the agenda further. The report is based on a programme of work undertaken on behalf of SDRN by AEA Technology. Contact: Sustainable Development Research Network www.sd-research.org.uk
1,000 Companies Delisted by UN Global Compact Since 2008
According to an announcement on 7 October, 1,000 companies have been delisted from the UN Global Compact since 2008, for failing to meet the annual reporting requirements, also known as the Communication on Progress (COP) policy. Companies that sign-up to the UN Global Compact are required to report annually on progress made in the implementation of the initiative’s ten principles covering human rights, workplace standards, the environment, and anti-corruption. Following a one-year ‘grace period’, companies which fail to submit an annual COP for the Global Compact public database result in a change in their company status and consecutive failures to submit a COP results in the removal of the company from the UNGC. “Over the years, the Global Compact’s framework has become increasingly robust, through the establishment of integrity measures, introduction of guidance materials, and the support of the many local networks that provide COP mentoring,” said Georg Kell, Executive Director of the UN Global Compact. Contact: UN Global Compact www.unglobalcompact.org
High profile companies working with Forest Footprint Disclosure Project
Adidas, British Airways, Kingfisher and Sainsbury’s are among the companies which have committed to submit their responses to a questionnaire sent to more than 200 companies by the Forest Footprint Disclosure (FFD) Project. The questionnaire was targeted at Fortune 500 and FTSE 350 companies with high potential impacts on forests caused by the use of ‘forest risk commodities’ in their supply chains, such as palm oil, soya, timber, biofuels, beef and leather. It was designed by the FFD Project specifically to help companies identify how and where forest impact could be improved in their operations as well as aiding businesses to identify the key areas for consideration. The new initiative is endorsed by 26 asset manager companies with collective funds under management of $2.9 trillion who believe that unsustainable commodities could cause a future valuation risk to their investments. Contact: Forest Footprint Disclosure Project www.forestdisclosure.com
A new business model for the low-carbon world
Global management consultancy Arthur D. Little has produced a new report, ‘Ensuring survival: Business models in a low-carbon world’. The report identifies drivers behind the increasing price of carbon and how this will affect business in all sectors. Furthermore, the report encourages businesses to consider the cost of carbon when planning for long-term growth. “Whether in emerging or developed markets, companies with innovative solutions to thrive in a low-carbon economy will have a competitive edge. Conversely, companies that do not take this on board will lose their competitiveness, as the cost of carbon drives up operating and raw material costs, and leads to supply-chain inefficiency.” reflects Richard Clarke, Director of Arthur D. Little’s Global Sustainability Practice. Contact: Arthur D. Little www.adlittle.com
CRO Awards Eight CEOs for Corporate Sustainability
Corporate Responsibility Officer (CRO) magazine released the winners of its third annual Responsible CEO of the Year Awards on October 6. The awards recognize individual CEO expertise in articulating leadership and progress in corporate sustainability, governance, compliance, CSR and philanthropy. The 2009 award winners include: John Hess (CEO Hess Oil), Lawrence Blanford (CEO Green Mountain Coffee Roasters), Neil Eckert (CEO Climate Change PLC), Paul Dickinson (CEO Carbon Disclosure Project), Michael Eckhart (CEO American Council on Renewable Energy), Stanley Litow (President IBM Foundation), Luke Ravenstahl (Mayor, City of Pittsburgh). Contact: CRO Magazine www.thecro.com
The 2009 Covalence Ethical Ranking Announced
The latest Covalence Ethical Ranking report was released on October 7, showing IBM, Intel and HSBC with top Covalence ethical ranking among 541 multinationals within 18 sectors. Covalence ethical quotation system is a reputation index based on quantifying qualitative data, which is classified according to 45 criteria such as labour standards, waste management, product social utility or human rights policy. It is a barometer of how multinationals are perceived in the ethical field. Contact: Covalence www.covalence.ch
The ‘State of Corporate Citizenship’ in the United States
The Boston College Centre for Corporate Citizenship has published the 2009 ‘State of Corporate Citizenship in the United States’. It is the fourth biennial survey of the attitudes and actions of senior executives in small, medium and large businesses regarding corporate citizenship. The survey explores how tough economic times have impacted upon the challenges of integrating corporate citizenship into the core business model but suggests that despite the recession, US businesses continue to focus on corporate citizenship practices. The report also examines businesses reactions to public policy and the growth in public expectations for further regulation of business. Contact: Boston College Centre for Corporate Citizenship. www.bcccc.net
Kraft Foods launched their first mainstream Rainforest Alliance Certified Seal
On November 2, Kraft Foods launched the first mainstream chocolate products in Europe to carry the Rainforest Alliance Certified seal. The company has also committed to purchasing 30,000 tonnes of sustainable cocoa by 2012. Kraft Foods has been working with Rainforest Alliance, development organisations in Germany and the US as well as with the cocoa trader, Armajaro, to support sustainable cocoa production in the Cote d’Ivoire, West Africa. The public-private partnership, known as the ‘Market-Oriented Promotion of Sustainable Certified Cocoa Production’ project, is in line with efforts to take Rainforest Alliance Certified cocoa to mainstream brands. Contact: Kraft Foods www.kraftfoods.com
Ladbrokes wins Building Public Trust award
On October 21, Ladbrokes won the PricewaterhouseCoopers’ Building Public Trust award for its 2008 Sustainability Reporting. The ‘Sustainability Reporting in the FTSE 250’ award recognises the greatest depth and relevance of sustainability reporting in the FTSE 250, through publicly available information provided to stakeholders. This is Ladbrokes fourth year for CSR reporting and its second for which it has received recognition. The award judges specifically focused on; consideration of sustainable development issues factored into core business strategy/priorities; understanding impacts of sustainable development issues for both the company/organisation and the wider market environment; appropriate governance policies, targets and objectives relating to sustainable development performance; relevant sustainable development key performance indicators; performance monitoring and reporting on the company’s priority sustainable development issues. Contact: Ladbrokes www.ladbrokesplc.com
Business Adaptation to Climate Change reports Insurers lead climate change adaptation
According to a new study from the Network for Business Sustainability, released on October 13, insurers are the most advanced organizations in adapting to climate change. The report – a review of over 200 studies since 1997 on how businesses adapt to climate change – includes a sector-by-sector analysis of the risks and opportunities climate change brings and tools to help businesses adapt. What sets the leading insurers apart are their institutional networks, which promote collaboration. “While climate risks and opportunities are often sector-specific, some sectors are emerging as leaders and have done so through collaboration,” said Tima Bansal, Executive Director at the Network. “Lagging sectors can learn from these leaders to innovate new ideas.” While there is a growing consensus that adaptation is a central strategy in dealing with the impacts of climate change, the report found most businesses haven’t yet incorporated substantial measures and many are focused on mitigating instead of adapting. Contact: Network for Business Sustainability www.nbs.net
In Brief
O2 launches online recycling service
O2 announced on October 21 their O2 Recycle scheme. As a part of the telecommunications company’s commitment towards sustainability, this online service aims to make it as easy as possible for people to recycle old handsets in return for cash. Operated by phone recycling specialist Redeem, all products received will be collected and handled through Redeem’s Falkirk distribution centre before being processed and sold on to global markets while the individual is reimbursed. Additionally, all waste residues and non-workable products received will be sent for responsible materials recycling. According to O2’s Marketing Director Sally Cowdry, O2 Recycle aims “to offer all customers the very best service, experience and most competitive prices when disposing of their electronic devices.” Contact: O2 www.o2recycle.co.uk
Audi spends €5 million on new ‘Environmental Foundation’
Audi’s latest step in its commitment to environmental protection has been the creation of an ‘Environmental Foundation’ – announced on October 1 – which unifies its worldwide environmental measures. This foundation will focus exclusively on environmentally minded pursuits which complement Audi’s continued environmental efforts to improve fuel efficiency and reduce emissions. The company will reduce the CO2 emissions of its vehicle fleet by around 20% by 2012. Furthermore specific corporate and factory CO2 emissions at Audi are also targeted for ongoing decreases. Contact: Audi AG www.audi.com
GRI Readers’ Choice Awards Open
An invitation to participate in the second global reporting survey has been announced by the Global Reporting Initiative (GRI) and its partners. Open to both readers and preparers of sustainability reports – the online scoring platform survey and awards were opened on October 13. Sustainability reports allow businesses and other organizations to disclose their performance on a range of economic, environmental, and social issues, and the information is increasingly sought by investors, employees, consumers and regulators. Contact: Global Reporting Initiative www.globalreporting.org
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