Sustainability & ESG Trends in View -– The G&A Institute Team Closely Monitors Developments For You

by Hank Boerner – Chair & Chief Strategist, G&A Institute

Every week G&A Institute assembles the value-added content that our team gathers for you as we closely monitor trends and developments in corporate sustainability, corporate responsibility, corporate citizenship, sustainable investing, and related topics and issues.

Our Editor-in-Chief Ken Cynar leads the daily effort and you see the results of his work in each issue of Highlights (note we are on #406 this week).  We hope that you benefit from this effort, part of our information-sharing and educational mission.

One of the benefits for us on the G&A Institute team is the yield from the close and continuous tracking and deep analysis of important trends in the related fields in every corner of the world, and in varying spheres of influence.   We are monitoring thought leaders on the corporate sector side, on the asset owner and manager side, from the perspective of the NGO or civic activist, the regulators, the academics, the ESG research service providers, and many more.

As the Global Reporting Initiative’s  (GRI) Data Partner for the United States of America, the United Kingdom and the Republic of Ireland, our team collects, analyzes and databases considerable volumes of data and narrative from the more than 1,200 reports we process each year (the reports are then made part of the GRI global inventory for public access).

From the thousands of corporate & institutional sustainability reports we process year-after-year, the yield includes value-added information on long-term trends, emerging trends, and “might-be-a-trend-taking-shape” development.  And so high on our list is news, information, research results related to corporate sustainability and responsibility reporting.  We highlight a few for you at the top of the newsletter this week.

We share volumes of information through our communication platforms, such as this weekly newsletter; our G&A Institute company website; the Accountability Central and Sustainability HQ web platform; the  G&A Sustainability Update blog; our TwitterFacebook, and other social media feeds; and more in-depth management briefs through our “G&A Institute To the Point!” platform.

IMPORTANT:  As always, we welcome your engagement, invite your queries, your feedback, your suggestions for issues and trends to watch, and suggestions for the guidance of the information-sharing that we do.  We’d also welcome the opportunity to speak with you about our consulting services.  Email us at info@ga-institute.com.

In this week’s issue, we’ve identified an especially higher number of important trends for you that are worth “tuning in to” as you continue on your sustainability journey.

“Sustainability “ trends that are the march – worldwide!

“Warm regards to you” from The Team at G&A Institute this sweltering summer in most parts!

Urban Centers – Preferable Place for Billions of Us to Settle Down — So What About Helping Growing Cities Become More Sustainable?

by Hank Boerner – Chair & Chief Strategist, G&A Institute

In focus:  With the majority of the population moving into urban centers in coming decades…how can the action of today’s city planners create a better future for us?  Scientific American shares some perspectives.

The Seto Lab at Yale University tells us that in 2008, the global urban population exceeded the world’s rural population for the first time – and that by 2050, 70% of the population will be living in urban areas.  Nearer term, by 2030 there will be 1.5 million square kilometers of new urban land area.  That will triple the global urban land area of the year 2000 as we entered the 21st Century.

The forecasts suggest a limited window opportunity to shape future urban development.  Author Chan Heng Chee offers suggestions in a very interesting Scientific American article for you – our Top Story this week.

Author Chan Heng Chee is Ambassador-at-Large for the Singapore Foreign Ministry, and chair of the Lee Kuan Yew Center for Innovative Cities at the Singapore University of Technology and Design.  We may remember her as the ambassador to the U.S.A. (1996-2012).

She reports from this year’s World Cities Summit  in Singapore, which this year focused on “Livable and Sustainable Cities: Embracing the Future Through Innovation and Sustainable Cities.”

One necessary ingredient for embracing sustainable development:  a visionary leader and a desire to implement the vision.  The availability of the Sustainable Development Goals is another.  Institutional structures are needed to put the vision in place (she offers examples from her home country of Singapore). And the fellowship of the city leaders worldwide is important – the example being the C40 Cities Climate Leadership Group.

The message: You are not alone – and collaboration and cooperation is critical if the civic, business, financial and other sectors are going to make the world’s urban areas sustainable in this century.  This is a fascinating report that you will want to read.

FYI – the Top 10 Cities roster today (in descending order) identifies:  Zurich (#1), Singapore, Stockholm, Vienna, London, Frankfurt, Seoul, Hamburg, Prague, and Munich at #10).

Top Stories

3 Ways Cities Can Become More Sustainable
(Monday – July 09, 2018) Source: Scientific America – With the majority of the population moving into urban centers in coming decades, the actions of city planners now could create a better future for us all. But how?

And related to this story:
UN forum spotlights cities, where struggle for sustainability ‘will be won or lost’
(Friday – July 13, 2018) Source: Modern Diplomacy – Although cities are often characterized by stark socioeconomic inequalities and poor environmental conditions, they also offer growth and development potential – making them central to the 2030 Agenda for Sustainable Development…

Cities and states mull straw ban
(Wednesday – July 11, 2018) Source: ABC Ban – Starbucks’ announcement that it will be going strawless soon to help the environment is part of a broader effort from private companies like McDonald’s and Marriott and cities like New York and Seattle to curb the use of plastic…

Information about the Seto Lab and its work in urbanization and global change: https://urban.yale.edu/research/theme-3

“Total Impact Valuation” – Monetizing the Enterprise’s “Cost-Benefit Analysis” of the Impact on Society? This is for CEOs – Advice From The Conference Board

by Hank Boerner – Chair & Chief Strategist, G&A Institute

Today’s question for corporate CEO’s:  Have you examined your company’s “Total Impact Valuation,” a new approach being advanced by The Conference Board, wherein the enterprises’ impact on society is monetized (cost/benefit evaluated and value attached)?

A small group of companies is doing these exercises. Think of their efforts to date as expanding the usual reporting of “Input/Output” to seriously consider (1) Outcomes, (2) Impacts, (3) Cost and Benefit to Society (and to the company).

Such firms as BASF (the German chemical giant), cement industry leaders Holcim/Ambjua Cement and LafargeHolcim, Samsung, Akzonobel (materials), ABN AMRO (Holland, financial services), Volvo (vehicles), and Argo (materials, Colombia) have been doing something along these lines and reporting results for a few years now on web sites, in sustainability reports, in financial statements, in a “total contribution report” or “value-added statement”, and by other means.

Some of these disclosures are third party assured (Argo’s is by Deloitte) and otherwise guided; the big accounting firms are involved (PwC and KPMG included).

This appears to us to have the potential to take corporate sustainability reporting to expanded (new) levels for at least the publicly-traded large caps – that is, if enough investors jump aboard the concept and ask for the information.  (Think about public discussion of the company’s “plus or minus” impact on society beyond the fences.)

Thomas Singer, Corporate Leadership research leader at The Conference Board, presents findings of his sampling of firms (those identified above) and shares his perspectives on the concept in Chief Executive Magazine – it’s our Top Story for you this issue.

BASF shares its “Value to Society” model (there’s a link to this in the article).  The company, explains Singer, monetizes more than 20 different types of environmental, social and economic impacts, including direct and indirect suppliers and even customer industries.

Author Thomas Singer turns out a good amount of strategic advice to company leaders and has been focusing more in his Director Notes on ESG and corporate sustainability.  There’s links to his papers and publications for you in the link.

A major drawback here in the U.S.A.: there is no standard benchmark for measuring progress or lack of, and to guide reporting; there is in turn no way to compare company “A” to “B” for investors, ratings analysts and others.

So what do you think – is this a “we’re a long way from Kansas, Toto” moment for corporate leaders in terms of expectations of shareholders and stakeholders for what the companies will share in their disclosures of the future?  (The “Kansas” reference being the bad old days practices of chemicals and other companies “externalizing” costs to society for environmental mismanagement and minimizing the actual costs of clean up in financial reports.)

The total value practice got underway in Europe – and we will be watching to see if U.S.-based public companies pick up on the concept. Especially those where their foreign peers have the modeling and techniques underway.  That is what happened with corporate sustainability and ESG reporting over time.

Top Stories

CEOs Need To Put This Sustainability Trend On Their Radar
(Tuesday – July 03, 2018) Source: Chief Executive – What if America’s CEOs could understand the full financial impact their company has on society? It could make them rethink their game plan for how they prevent workplace accidents, lessen air pollution, manage waste – the list…