Report: Company executives putting higher priority on sustainability
Executives at all levels see an important business role for sustainability. But when it comes to mastering the reputation, execution, and accountability of their sustainability programs, many companies have far to go, according to a new survey of executives, conducted by think tank McKinsey Global. In past surveys, when asked about their companies’ reasons for pursuing sustainability, respondents most often cited cost cutting or reputation management. This year, “43 percent (and the largest share) say their companies seek to align sustainability with their overall business goals, mission, or values —up from 30 percent who said so in 2012”. The shift in mentality may correspond to the increasing priority of sustainability on the business agenda. Further results show “CEOs are twice as likely as they were in 2012 to say sustainability is their top priority. Larger shares of all other executives also count sustainability as a top three item on their CEOs’ agendas”. Going forward the report cites three key drivers of value in sustainability: extending the product lifecycle, looking to technology, and focusing strategy. (McKinsey)
Responsible Investment
Sainsbury’s agrees green loan to support its sustainability investments
The UK retailer chain Sainsbury’s has agreed a £200 million corporate ‘green’ loan that it will use to invest in on-going carbon reduction and sustainability projects, following similar recent moves by EDF and Unilever. While Green Bonds are now increasingly issued by institutions to support environmental initiatives, few commercial loans have been structured to do the same. The loan will be underpinned by clear environmental commitments to ensure the business uses the money for energy, waste and water-related projects. Sainsbury’s CFO, John Rogers said: “This £200 million loan… demonstrates our commitment and leadership in carbon reduction and sustainability, and shows the value we attach to environmental improvements”. The green loan will be independently measured and monitored by a third party to evaluate its use and its positive environmental impact. Jan van Nieuwenhuizen, member of the executive board of Rabobank, which acted as Sole Mandated Lead Arranger, said: “This green deal is a first of its kind and further emphasises how we collaborate with our clients to meet our joint sustainability aspirations”. (2Degrees)
Renewable Energy
GE ramps up wind energy investment with Indian development deal
Engineering giant GE has announced it is to invest in three wind farm projects in India, as part of its commitment to invest at least $1 billion annually in renewable energy capacity worldwide. Combined, the projects are expected to deliver 126 megawatts of capacity and are expected to benefit from the Indian government’s feed-in tariff incentives, which are seeking to mobilise investment in new clean energy projects. Atria Power, a regional energy player, will construct the wind farms, a partnership which Raghuveer Kurada, business leader for India and South East Asia at GE Energy Financial Services welcomes. “Partnering with Atria Power… accelerates our global growth and India wind portfolio,” he said. The move also underlines Atria Power’s position as one of India’s leading wind energy developers. Sunder Raju, director at the company embraces the collaboration: “GE’s global experience, financial structuring capabilities and commitment to advanced technology complements our strategy to develop low-cost renewable energy projects with maximum energy output,”. (Business Green)
Environment
Largest coal mine in Australia: government gives Carmichael project go-ahead
The Australian environment minister, Greg Hunt, has approved a $16.5 billion resources project that will lead to the creation of the largest coal mine in Australia, and one of the largest in the world. The project, overseen by the Indian mining company Adani, will consist of a network of open cut and underground mines in the Galilee Basin region of central Queensland. The mine has been fiercely opposed by environmentalists due to its potential impact upon the Great Barrier Reef, groundwater at its site and its hefty carbon emissions. Greenpeace has claimed coal from the mine will cause an additional 128 million tonnes of carbon dioxide to be released into the atmosphere. Greenpeace said Hunt has “laid out the red carpet for a coal company with a shocking track record to dig up the outback, dump on the Great Barrier Reef and fuel climate change”. The minister has however imposed 36 conditions, primarily aimed at protecting groundwater, on the Carmichael coal mine and rail project. These ensure Adani “meets the highest environmental standards and that all impacts, including cumulative impacts, are avoided, mitigated or offset”, he said. (The Guardian)
Bee research tainted by corporate funding, MPs say
Critical future research on the plight of bees risks being tainted by corporate funding, according to a report from UK MPs. Pollinators play a vital role in fertilising three-quarters of all food crops but have declined due to loss of habitat, disease and pesticide use. New scientific research forms a key part of the government’s plan to boost pollinators but will be funded by pesticide manufacturers. The environmental audit select committee (EAC) report urges ministers to end their opposition to bans on insecticides, arguing there is now even more evidence of damage. EAC chair Joan Walley said: “When it comes to research on pesticides, the Department of Environment, Food and Rural Affairs (Defra) is content to let the manufacturers fund the work… This testifies to a loss of environmental protection capacity in the department responsible for it”. Friends of the Earth’s nature campaigner Sandra Bell, said: “If the government’s action plan to protect Britain’s pollinators is to have any credibility it must back the ban on bee-harming insecticides and set out a clear strategy to reduce pesticide use”. (The Guardian)
COMMENTS