PRACTITIONERS have long argued they add to the long term value of their companies and that finance directors and stock markets are just too myopic to know better.
Certainly it’s true that improved operational eco-efficiency often can pay for itself over quite short timescales (and that’s where M&S made most of its cost savings). Harder to prove is revenue growth.
In this edition we report on a study by British Brands Group with many examples of benefits to business and society from CSR but no methodology to capture it. A study from Accenture finds a direct link between sustainability policies and innovation – confirmed by a third study reported here, from Brands & Values, where European CEOs say that increased environmental constraints like water shortages are driving corporate innovation.
In other news this time, it’s clear from a slew of separate stories that exploiting tar sands for oil is becoming the next big eco-battle. Footprints are big news too this month – the latest from CDP on companies’ carbon footprints, a push for water foot-printing by Ceres and now a forest footprint too.
Meanwhile in the mainstream media, rows over executive pay, pensions and above all bonuses have been in full flood. So it’s interesting to see here both Aviva Investors and EIRIS calling for a stronger link between executive remuneration and underlying performance and responsible business behaviour.
A shame then that we have to report The Economist Intelligence Unit finding fewer than one in five companies with any link between pay and sustainability indicators. That said, would shareholders’ complaints about Sir Stuart Rose’s multi-million package really subside if it were strictly tied to achieving Plan A? Don’t hold your breath.
Mike Tuffrey is founding editor of Corporate Citizenship Briefing, and founding director of Corporate Citizenship. In addition, he is an elected member of the London Assembly and has been appointed by the mayor to the London Sustainable Development Commission.
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