Businesses must adapt sustainable finance models to prepare for innovation flood, says Interserve
Businesses must prepare for a “flood” of technological advances by adjusting how they assess the non-financial impacts of low-carbon investments, according to Tim Haywood, Head of Sustainability and Group Finance Director of construction firm Interserve. Haywood noted that companies would have to account for the wider natural, environmental and social benefits of the uptake of sustainable innovations following new government regulations. His role involves assessing any potential investment through a “financial-sustainability” lens to ensure they are economically viable, even if the benefits of such investments are not obvious. This avoids what Haywood refers to as “green bling” – sustainability solutions deployed based solely on the CSR stories they can help to tell, without any regard for financial sustainability. One example was Interserve’s decision to exit from large energy-from-waste contracts last year due to the high charges associated with the contracts, following which the FTSE-250 company’s share price soared. (edie)
Diversity
Black women’s equal pay day highlights wage gap in the US
Black women working full time, year round make only 63% for every dollar paid to their white, non-Hispanic male counterparts, according to new report by the National Women’s Law Centre (NWLC). The American Association of University Women (AAUW) has recognised Monday, July 31 as Black Women’s Equal Pay Day, the symbolic day when Black women’s earnings “catch up” to white men’s earnings from the previous year. According the AAUW, the pay gap threatens Black women’s “economic security and can hinder women’s ability to pay bills, including student loans.” Although NWLC found that the number of Black women pursuing higher education has increased over the past decade, it states that it has done “little to close the wage gap”. The AAUW’s recent report also showed that 57% of Black women who were repaying student loans reported that they had been unable to meet essential expenses within the past year. (Diversity)
Supply Chain
Australian businesses unaware of slavery in supply chains, inquiry told
A federal inquiry has heard Australian businesses are not doing enough to tackle slavery in their supply chains, as acknowledged by business lobbies and companies. However, big businesses are concerned that Australia may end up with laws that place stricter requirements than is the case in other nations such as Britain, which has a Modern Slavery Act. The 2016 Global Slavery Index estimated that two-thirds of the 45.8 million victims of slavery reported across 167 countries are in the Asia-Pacific region, with more than 4,000 in Australia. Companies’ submissions to the joint committee looking at establishing a Modern Slavery Act in Australia, including those of Nestle, Woolworths, Qantas, BHP and Fortescue Metals, have called the government to clearly define which companies will be required to report and on what part of their supply chains, avoid duplication of requirements from existing laws and provide guidance in the implementation to minimise the costs of implementation. (The Sydney Morning Herald)
Innovation
The Competitive Agility Index: Sustainability could unlock $1bn for auto, industrial companies
Interdependent business strategies focused equally on growth, profitability and sustainability and trust are better placed to compete in future markets than one-dimensional strategies, according to new Accenture research. The company has released a new performance index — the Competitive Agility Index — which identifies the corporate leaders of the future across nine industries and is based on a set of nine performance measures. The Competitive Agility Index revealed that automotive and industrial companies stand to gain the most from adopting interdependent business strategies that focus on all three dimensions — in the range of $1 billion per company. The top performing companies on the Index include: BMW, Schneider Electric, Honeywell and Daikin. According to the analysis of a set of 47 automotive and industrial companies, a $30 billion company that adopts a three-dimensional strategy could see revenues rise by almost $1 billion. Such competitiveness dimension needs to put emphasis on growth and automotive companies should seize the opportunities of changing sales channel structures and new mobility business models, Accenture said. (Sustainable Brands)
Energy
Deepwater plans to pair US offshore wind farm with Tesla battery
US developer Deepwater Wind has unveiled plans for what it claims will be the “largest combined offshore wind and energy storage project in the world” bolstered by a Tesla battery when demands on the grid peak. The move aims to defer the need to construct “costly” new peaking generating facilities and transmission lines. By kick-starting the offshore wind and energy storage industry in the region, ratepayers will benefit from increased competition, declining costs and a steadily maturing regional supply chain, the company said. Deepwater Wind CEO Jeffrey Grybowski said the flexibility and scalability of the project presented a “serious advantage of offshore wind” as it can be built “to the exact size utilities need”. If approved, the project would begin in 2022, with operations planned to start in 2023. (Business Green)
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