Study: fastest-growing cause for investors is sustainability
The number of shareholder resolutions filed by investors concerning social and environmental issues has increased dramatically over the past five years, according to a new study from Harvard Business School. Authors George Serafeim, Jody Grewal and Aaron Yoon analysed 2,665 shareholder proposals submitted between 1997 and 2012. They found that social and environmental resolutions – including on political spending, climate change, diversity, and human rights – are now some of the most frequently filed. Most significantly, 58 percent of such proposals are filed on issues classified as “financially immaterial” by the Sustainability Accounting Standards Board (SASB). According to Serefeim, this represents “further evidence that investors aren’t only motivated by short-term profit. Rather, it reflects the pro-social objectives of a large number of sponsors of such proposals”. (HBR)
Strategy
Natural Capital Protocol launched
Representatives from over 160 organisations spanning business, finance, accounting, conservation, academia, and policy meet today in London to celebrate the launch of the first global Natural Capital Protocol. The Protocol is a standardised framework designed to generate trusted, credible, and actionable information that business managers need to make truly informed decisions. It has been piloted by over 50 leading businesses, including Dow, Shell, Coca-Cola, Kering and Interface. According to a 2013 report commissioned by the Natural Capital Coalition, half of all existing corporate profits would be at risk if the costs associated with natural capital were to be internalised through market mechanisms, regulation or taxation. A water shortage, for example, would have a catastrophic impact on 40 percent of Fortune 100 companies. (Natural Capital Coalition)
Pearson, the world’s largest education and publishing company, has launched its 2015 Sustainability Report, which aims to advance the conversation about what sustainability looks like in the education industry. The report introduces Pearson’s new five year plan to integrate sustainability into every aspect of its business and to help drive forward the UN’s Sustainable Development Goals (SDGs) through contributing educational expertise, knowledge and resources to address key global sustainability challenges. Pearson’s new sustainability plan references three key SDGs (4-Quality education, 8-Decent work and economic growth, 10-Reduced inequalities), to ensure Pearson focuses its efforts where it can have the greatest impact. (Pearson)
Discrimination is biggest challenge for Airbnb, CEO says
The biggest challenge facing Airbnb is not the regulatory crackdown from cities such as New York, but blatant discrimination occurring on the company’s platform, CEO Brian Chesky has said. Airbnb was late to acknowledge and address discrimination, Chesky said, admitting it was not a problem that he and his fellow co-founders gave much thought to when designing the platform. A Harvard Business School study last year found persistent discrimination by Airbnb hosts, who were less likely to accept bookings from guests whose names sounded distinctly African-American. Airbnb is in the process of a 90-day study on how it can address the racism and discrimination, Airbnb’s legal officer, Belinda Johnson, said. (Reuters)
Waste
Singapore to introduce legislation on sustainable packaging
Singapore’s National Environment Agency (NEA) will be introducing mandatory requirements for companies to use sustainable resources in packaging and reduce packaging waste in the next three to five years. This has been announced by Masagos Zulkifli, the country’s Minister for the Environment and Water Resources. Preliminary ideas include requiring companies to submit annual reports on how much packaging they use, to develop waste reduction plans, or to meet recycling targets. Masagos noted that the country produced 1.73 million tonnes of domestic waste last year, and one-third of this was from packaging. While the voluntary Singapore Packaging Agreement (SPA) has made “commendable” efforts since it was signed in 2007, much more work is needed, he said. (Eco-Business)
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