Millennials Really Do Want To Work for Environmentally-Sustainable Companies, According to a New Survey of Large Company Employees

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

Here we are in the new millennium, since 2000 or 2001 (the clear delineation of the century-break has been debated) and the generation that straddles the 20th and 21st centuries has characteristics that may be quite different for employers (and as customers, investors, voters).

The Millennial Generation has been defined by the U.S. Census Bureau as those men and women born between 1981 and 1996, who are 23-to-38 years of age in 2019. (For sure, the exact definitions of recent generations are not always in general agreement.)

This cohort succeeded the smaller-sized “Generation Xers” and the larger Baby Boom generation (born 1946-1964, originally 77 million strong and two-thirds larger than the “Silents” before them).  The long-dominant Boomer population has been decreasing in total size since 2012…so what comes next for the business sector and the financial sector?

Answer:  Millennials! – and then over time the Post-Millennials, those born 1997-to-the-present day. But today’s focus is on the many impacts, strong and subtle, of the Millennials.

The Pew Research Center sees some of the defining trends for the Millennials as including experiencing the September 11, 2001 terrorist attacks and the aftermath (shes off at the airport screening); the 2008 financial crisis and the impacts of the Great Recession that followed; steadily escalating costs for higher education and healthcare and housing…and other factors that created “slow starts” for their careers and “that will be a factor for American society for decades to come.”

This is also the generation that grew up surrounded with technology and for some, the experience of transition from land-line phones to early cell phones and then on to sophisticated iPhones; and for most, the internet, the World Wide Web, and social media became the center of life, observes the Pew researchers.

So what should business leaders expect as this maturing generation – in terms of attractive to potential job applicants and for retention of Millennials already under the roof?

Fast Company, the go-to magazine for many in the generation, says corporate sustainability is a priority and most Millennials would actually take a pay cut to work at an environmentally-responsible company; 40 percent have already done so because “company sustainability”. That is higher than the answers of respondents of prior generations (below 25% for Gen Xers and 17% for parents and grandparents in the post-WW II Boomer crowd).

Millennial survey respondents (40%) said they have chosen a job because the company performed better on sustainability than other choices…something only 17% of Boomers said they had done.  As for employee retention, consider that 70% of Millennials said they would stay with a company if it had a strong sustainability plan.

Are these survey results a “blip”?  Fast Company [magazine] tells us that in 2016 a similar survey reported that 64% of Millennials said they would not take a job at a company that was not “socially responsible” — and 75% said they would take a smaller salary to work at a company more in line with their “values”.

The 2019 survey was based on conversations with 1,000 employees at large U.S. companies.  More than 70% of respondents said they would choose to work at a company with a strong environmental agenda, and a sizable number said they would take a pay cut to do so.

Today’s business leaders need to keep these attitudes in mind as this significant demographic shift is taking place.  As the huge generation of Baby Boomers continue to age out of the workplace (the oldest are 73 years of age, the youngest are now 55),

Transition:  Millennials will make up three-out-of-every-four workers in the next six years, staff writer Adele Peters tells readers.(And the Census Bureau says they are one-out-of-four of the total US population today.)

The survey was commissioned by the blockchain-based clean energy platform Swytch – another sign of the times; this is a new platform organized to track and verify the impact of sustainability efforts and action on the global level of C02 emissions using blockchain technology.

The company says that consumers reducing their energy use can win tokens.  Is this 21st Century approach to currency exchange a “blip”? Perhaps not – JPMorgan Chase recently announced its own crypto-currency and as we write this, Bitcoin values are at $4,000.

Says Swytch co-founder Evan Caron of the survey:  “From my perspective, it’s a competitive advantage for large enterprises to really align themselves with employees’ ideas about creating more environmentally-sustainable choices.”

This Week’s Top Story

Most millennials would take a pay cut to work at a environmentally responsible company
(Friday – February 15, 2019) Source: Fast Company – Nearly 40% of millennials have chosen a job because of company sustainability. Less than a quarter of gen X respondents said the same, and 17% of baby boomers.

Question for Corporate Leaders: Is Your Company’s Sustainability Journey Based on Key Strategies? Is There Clear Alignment of Foundational Strategies with Sustainability?

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

HBR Authors Share Some Research Findings Of Importance to Corporate Leaders and Asset Managers…

Strategy – the familiar word comes down to us over the eons from the language of ancient Greece. The roots of the original word (translated to the more modern “stratagem”) mean “the work of the generals, or generalship” which is to clearly say:  to lead from the front..or the top!

In 2019, “strategy” and “sustainability” should be clearly linked, right?  In the corporate sector, setting strategies is at the heart of the work of the men and women at the top, in the board room and in the C-suite.  So what does that mean to us in terms of the intensive focus today on corporate sustainability and ESG performance? (And, the impacts positive and negative in the capital markets?)

The corporate enterprise that is seeking to excel among its peers, and clearly demonstrates leadership in sustainability matters (that encompasses a broadening range of ESG issues today) surely has the leaders at the top crafting, innovating and sharpening the leadership strategy…and driving the foundational elements down into the depth and breadth of the enterprise.  Typically, universal understanding helps to drive competitive advantage and creates a moat more difficult for peers to cross.

And so in this context, what about the “corporate sustainability laggards”?  Often in our ongoing conversations with a wide range of corporate managers – and with investment managers evaluating corporate ESG performance – the companies not yet well along in the journey or perhaps not even started on the journey, lack of sustainability strategy sends a signal of “silence” from the top ranks.

What this says to stakeholders:  ESG and strategy = not connected yet, there is a lack of quality in our management and board.  Don’t look to our firm for signals of sustainability leadership.

We find that most large-caps “get it” and it is the resource-challenged small-cap and mid-cap firms that are not yet started or not far into the sustainability journey.

The topic of corporate sustainability strategy gets a good overview in the pages of the Harvard Business Review by the outstanding ESG / sustainability experts, George Serafeim and Ioannis Ioannou.  Their post is based on their new 45-page paper (“Corporate Sustainability: A Strategy?”) and their co-authored HBR management brief is the topic of our Top Story for you.

They recently published the paper using data from MSCI ESG Ratings for 2012-to-2017 (looking at 3,802 companies); among the approaches was to separate “common practices” (across many companies) and “strategic” (those not so common to most companies).

Your key takeaway from their work:  “Our exploratory results confirm that the adoption of strategic sustainability practices is significantly and positively associated with both return on capital and market valuation multiples, even after accounting for the focal firm’s past financial performance.”

And…”the adoption of common sustainability practices is not associated with return-on-capital, but is positively associated with market valuation multiples.” There’s more for your reading in the Top Story below.

You could share these findings upward in your organization if your firm’s executives are not quite tuned in yet to the importance of having a clear strategy that factors ESG factors and sustainability into account.

Notes:  George Serafeim is Professor of Business Administration at Harvard B-School and Ioannis Ioannou is Associate Professor of Strategy and Entrepreneurship at London Business School.  They frequently collaborate and both write extensively on topics related to corporate sustainability and sustainable investment. And both are frequent speakers and panelists at trade and industry conferences and workshops.

This Week’s Top Story

Yes, Sustainability Can Be a Strategy
(February 11, 2019) Source: Harvard Business Review – In recent years, a growing number of companies around the world have voluntarily adopted and implemented a broad range of sustainability practices. The accelerating rate of adoption of these practices has also provoked a debate about the nature of sustainability and its long-term implications for organizations. Is the adoption of sustainability practices a form of strategic differentiation that can lead to superior financial performance?

Or, is it a strategic necessity that can ensure corporate survival but not necessarily outperformance?

The Ethical and Sustainable Supply Chain – Some Thoughts on This For You From Forbes

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

Ethical sourcing” — we see that term used a lot by companies that are systematically addressing issues in their sourcing and supply chain management to better understand and address (and better manage!) the various issues that their investors, customers, employees, business partners, and other stakeholders care about.

What is “ethical” behavior, to be found in the layers-upon-layers of suppliers in the usual  corporate globalized sourcing effort?  How do we define this?

As we sometimes hear in the poetic notion, little things can have substantial impact; think of the the butterfly wings’ flapping and fluttering in Brazil that can have effects all the way north as expressed through the hurricane winds hitting Mexico and in the tornado whirlings on the American Gulf coast.

This “butterfly effect” (part of the chaos theory portfolio) has counterparts in the supply chains of companies sourcing from near and far lands.

An example shared:  Poor working conditions in the Bangladesh factories have been brought to consumer attention by United Kingdom news reports; the Asian-produced goods (such as T-shirts) end up on retailer shelves with “Spice Girl” branding.  Irony:  the shirts were part of the Comic Relief Event campaign staged to raise money for “gender justice” – and the Bangladesh female workers made 30 cents an hour under hostile working conditions (details are in our Top Story).

Writing for Forbes (brands), contributor Richard Howell’s shares his thoughts in our Top Story.  “Social, economic and environmental sustainability should be at the heart of every supply chain…” he writes.

He posits that consumers are looking to buy from companies that have a preferable design, sourcing, manufacturing, delivery of goods & services…and that operate assets and equipment in an energy-efficient, safe environment (for team members and the environment).  Howell spells these out in his commentary.

So – what is ethical?  Among other things, fair wages, better working conditions and gender equality in the global supply chain that is sustainable as well.

This week’s Forbes commentary is by contributor Richard Howells, a 25-year veteran of supply chain management and manufacturing who describes himself as “responsible for driving market direction and positioning of SAP’s Supply Chain Management and IOT solutions.”  He’s worked on systems for such brand-facing companies as Nestle, Gillette, and others.

This Week’s Top Story

Tell Me What You Want, What You Really, Really Want: A Sustainable Supply Chain
(Thursday – January 31, 2019) Source: Forbes – Social, economic, and environmental sustainability should be at the heart of every supply chain

Davos 2019: The Conversation in Switzerland Ripples Out to The Rest of the World – News, Commentaries, Reports, Initiatives, For Your Consideration

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

Davos, Switzerland –  January 2019: The Conversation in Switzerland Ripples Out to The Rest of the World – News, Commentaries, Reports, Initiatives, For Your Consideration

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

The world leadership gathering in Switzerland in winter every year – we see this in the “Davos meetings” in the news report datelines – are part of the World Economic Forum’s (WEF) broad thought leadership activities.  This gathering is the WEF’s annual meeting (there are regional meetings as well).

Heads of state, CEOs, invited societal thought leaders, leading academics and journalists, politicians of all persuasions, NGOs, heads of multilateral heads (Christina Lagarde, International Monetary Fund)…they were all gathered there again this year.

WEF bills itself as “the international organization for public-private cooperation”; it was created in 1971 as a not-for-profit, to operate in a non-partisan, independent forum for leaders of society.  The annual meeting provides the opportunity for sharing ideas on a wide range of issues and topics. And then the broadcast of these out to the world.
This year, the broad themes of discussion included “4th Industrial Revolution”, “Geostrategy”, “Environment”, and “Economics”.

“Shaping” (taking actions as private-public partnerships) was the theme of numerous initiatives such as “Shaping The Future of Environment and Natural Resource Security”.

A slew of reports are typically issued each year; in 2019 one was “Seeking a Return on ESG: Advancing the Reporting Ecosystem to Unlock Impact for Business and Society”.

These reports and other information are available for you on-line at: https://www.weforum.org/agenda

Naturally, with the wise men and women of our global society gathered in the snowy reaches of Davos and presenting their views over several days, there was the usual flow of headlines and news stories out to the rest of the world.

Our team, led by Editor-in-Chief Ken Cynar closely monitors the Davos and other WEF meetings (the annual and regionals) to bring you relevant highlights. This week after the conference wrapped up, Ken Cynar selected this week’s Top Story pick.

That selection presents the comments of Hans Vestburg, CEO, Verizon Communications, on the theme of The Fourth Industrial Revolution and a Sustainable Earth.  CEO Vestburg (he’s originally from “high latitudes” Sweden and became CEO in August 2018) is strategically positioning his giant telecomm enterprise to balance market leadership, promising advances in technology (such as 5G networks) and challenges presented by climate change, population growth — and helping society achieve a sustainable and equitable future.

Hans Vestburg said at Davos: “Perhaps it because of my roots in a land so beautiful (Sweden) and yet so vulnerable…I’ve long had an interest in the potential link between technological advancement and environmental sustainability.”  CEO Vestberg helped to lead the U.N. Sustainable Development Solutions Network, as example.

He sees the coming generation of high speed, highly-interactive technologies as a possible resource to help society buy time against catastrophic worldwide climate change (think of 3D printing, 5G networks, the Internet of Things, 4IR networks, autonomous devices).

Consider this, said the CEO of Verizon to the Davos leadership gathering:  “If we and our partners throughout industry, government and academia can collaborate imaginatively on way to maximize the sustainability benefits of these emergent technologies from the very start, the next few crucial decades could see cascading gains in momentum against both materials wastage and emissions.”

We think you’ll find his comments intriguing – and most welcome from the CEO of a prominent U.S. corporation with commitment to address critical issues related to climate change, and willing to speak up!

This Week’s Top Story

Want a Sustainable Earth? Bring on the Fourth Industrial Revolution
(Wednesday – January 23, 2019) Source: World Economic Forum – When I became CEO of Verizon back in August, one of my commitments was to accelerate our company’s progress in Fourth Industrial Revolution (4IR) technologies, drawing upon our longstanding role as a world leading…

From Sustainable Brands: A Prominent IT Professional’s Outlook on 2019 -– “Year of Sustainability” Empowered by Technology & Innovation

Is 2019 going to be “The Year of Sustainability”?  Greatly empowered by technology?  With exciting innovation on the business front?  One European-based writer (Carmen Ene, CEO of 3 STEP IT in Helsinki, Finland) thinks so. Writing for Sustainable Brands® SB/The Bridge to Better Brands, she outlines what she sees as the top sustainability issues for corporate leaders in 2019 — and offers advice on how to address them.

Consider her view: Companies can take better control of their sustainability strategies and publicly acknowledge the top issues they could be facing in this year.  Data-driven metrics can help here (“Big Data” analytics help in planning and strategy-setting at the top, for example).  The rate of adoption of sustainable practices has been picking up in recent years but in 2019, we can expect to see significant change in business leaders’ behavior toward sustainability efforts.

As the universe of third party ESG data and analytics providers continue to expand their efforts to tell a story about the ESG activities of public companies, without active control of the narration, corporate executives may see various independent narratives (presented by the third parties) that are not favorable portrayals of the company and its ESG activities.
Innovation in technology is empowering businesses to utilize tech solutions to keep up with society’s changing demand (think about the Internet of Things and Blockchain examples).

Artificial intelligence and blockchain are some approaches to be explored, says the writer. Naturally, as a seasoned IT professional, Carmen Ene sees innovation in tech as important means for leaders to keep up with meeting investor, customer and stakeholder needs.

Consumer behavior is something smart businesses always deal with.  And so, dealing with the prevalent “throwaway culture” for producers of IT hardware — think about the waste and need for recycling of electronic goods — will certainly present growing challenges. (China recently curtailed treatment of E waste from other nations, presenting real challenges for civil government leaders in the USA at the community level.)

As the “digital world” continues to expand (think: ever-increasing access to information via newly-acquired hardware), the cast-off waste and E-detritus continues to build worldwide.

That requires smart approaches by electronics manufacturers and others to develop more effective waste and recycling efforts — which for industry players means (the author advises) better management of hardware, improved purchasing decisions and focus on reduction.

More effective IT lifecycle management is one approach being adopted by companies, says Carmen Ene — and that is the focus of her company’s efforts.

Changing regulations will pose challenges for businesses — worldwide, more regulations are being put in place to address environmental issues such as those posed by plastic waste and increasing GHG emissions. Local and national governments are putting sustainability goals in place (the UN SDGs are a driver) with both voluntary and mandatory guidelines. The almost 200 nations signing on to the Paris Agreement are busily coming up with “solutions” to environmental issues at home.

A key takeaway from her commentary:  business has a real need to act responsibly as a key aspect of corporate strategy.  Technology does help to drive change (sometimes very rapidly and causing disruption in many instances), and technology properly deployed can help to drive sustainability practices — creating still more innovation in sustainability strategy and efforts.  Business offerings can be made more sustainable and ethical for the future – with the help of technology.

We’re presenting interesting reading for you from this author in our Top Story this week.  Carmen Ene joined 3 STEP IT as CEO in 2015; the company’s mission is “to enable the most advanced IT life cycle management while striving to make the circular economy a reality.”  She previously held senior management positions at IBM.

The publication is from Sustainable Brands (SB), the premier global community of brand innovators “shaping the future of commerce worldwide.”  SB positions itself as a bridge between brand innovators across all circles, acting as a catalyst for intelligent discourse.  G&A Institute collaborates with SB in sharing information of value to our connections and promoting visibility for the fabulous Sustainable Brands conferences.

Top Story

3 Top Sustainability Issues in 2019 and How to Address Them
(Monday – January 14, 2019)  Source: Sustainable Brands – Once seen as a ‘nice to have’ for businesses, sustainability has become a vital component of many global organisations’ social and economic strategies.

The US Sustainable Development Goals – How Companies and U.S. Cities Are Leveraging the Goal to Maintain the Pace of Progress

The nation’s leading think tanks, home to numerous scholars and policy wonks, including former officeholders (with many centers headquartered in Washington DC) focus on a variety of political, economic, cultural, environmental, science, and global issues and topics — typically reflecting the points-of-view of their constituent base.

These research/policy centers include Brookings, Cato, Heritage, American Progress, Center for Strategic and International Studies, RAND, Council on Foreign Relations, Pew, and American Enterprise.  We certainly don’t mean to leave others out – we follow more than two dozen scholar centers that provide research results related to sustainability and good governance.

The century-old Brookings Institution typically leans toward the “social liberal” views of the political spectrum on numerous societal issues, including governance, metropolitan policy, economics, social welfare, and foreign policy/global cooperation (there are five major research programs at Brookings).  The organization stresses that the work is non-partisan; Brookings is among the most frequent of think tanks cited by media and the political community.

Looking at the Corporate Sector
The themes of the SDGs are being actively embraced, adopted, and pursued by a widening range of companies.  We see in our own monitoring of corporate sustainability / responsibility reporting the steady embrace / adoption of certain of the Goals that seemingly align with the mission of the corporation.  “Water” the #6 Goal or “Poverty” the #1 Goal or “Gender Equality” the #6 Goal are among these.

Recently, we published the results of a year-long effort that analyzed a total of 1,387 Sustainability / ESG Reports that utilized the GRI’s G4 Framework and then linked them to the 169 SDG targets mapped in the SDG Compass (produced by the collaborators GRI, UN Global Compact and WBCSD).  This study allowed us to analyze the activities of these sustainability reporters related to the SDG targets for 40 industries:  https://www.ga-institute.com/SDGsWhatMatters2018

This week we present two interesting and timely Brookings Institution commentaries for you, both focused on the UN SDGs and the embrace of the goals by corporations, and by city managements across the United States.

The scholars at Brookings (George Ingraham), 2U (Mai Nguyen) and Georgetown University School of Foreign Service (Milan Bala) teamed to examine 40 companies to provide a foundation of understanding of how companies are adopting the 17 SDGs, with interview with executives of 14 of the companies.

Business enterprises, they found, go through a deliberative evolutionary process to make the link between mission and sustainability.  This helps the leadership to “fit” the 17 SDGs with their 169 targets with their business or values case.

Linking SDGs to the business case means (they say) maximizing growth opportunities and minimizing risk for 80 percent of the companies studied.

There were three means of doing this:  (1) Strategic Integration at the top, (2) Operational Integration and (3) Organizational Integration (throughout the enterprise).

Here’s the link to the study document from Georgetown University.

Looking at the Public Sector
The second Brookings study also looks at the SDGs and how these are helping U.S. cities’ leadership and citizen base in tackling “urgent local economic, political and environmental challenges” – those vital to the health and well-being of residents. (This was a discussion at a D.C. event in November 2018.)

There are highlights of the discussion and a video; discussion leaders represented New York City, Pittsburgh, Los Angeles, and Carnegie Mellon University’s Metro21 Smart Cities Institute.

Important themes were explored:  (1) cities are leading globally, becoming the standard bearers of American leadership as the Federal government’s sustainability efforts lag under the new administration, which is abandoning the landmark Paris Agreement; (2) cities are becoming more unified and their social fabric is unifying to deliver results on the SDG agenda; (3) no one is going to be left behind, a theme to help residents achieve the American Dream; (4) cities and municipalities are promoting innovation, leveraging the SDG themes; and, (5) best practices and outcomes are being shared as cities communicate their progress as city leaders “GSD” (they Get Stuff Done!).

To demonstrate the synergy and interconnectedness of the SDGs, Brookings explains:  “Policies meant to advance progress on climate change…must simultaneously address inequities and inequality of opportunity, helping to create peaceful, just and inclusive societies…”

We present the two reports as our Top Stories for this week.

This Week’s Top Stories

How corporations are approaching sustainability and the Global Goals
(Wednesday – January 09, 2019) Source: Brookings – Corporations are increasingly building sustainability into their business strategies, and linking outcomes to the Sustainable Development Goals (SDGs), as seen in the 7,500 companies issuing annual sustainability or corporate…

US cities leading on the Sustainable 
(Friday – January 11, 2019) Source: Brookings Institute – On November 29th in D.C., an event co-sponsored by Carnegie Mellon’s Heinz College of Information Systems and Public Policy and the Global Economy and Development program at Brookings examined how the 17 U.N. Sustainable…

There Were Many Positive Developments for Sustainability Professionals in 2018 and Much Promise for What’s To Come in 2019 – We Are Watching For You

There were many positive developments and trendlines in 2018 that we believe were encouraging for corporate sustainability & responsibility managers, sustainable investing champions, NGO managers and members, and other stakeholders.  The analyses and wrap-ups are beginning to appear now in the many media outlets and platforms that we monitor.  We bring you some highlights in this first newsletter of the exciting new year, 2019!

One of the most compelling and sweeping of essays to kick off the year was the commentary of Andrew Winston in the Harvard Business Review – “The Story of Sustainability in 2018:  We Have About 12 Years Left.”

Author Winston came to broad attention with the publication of his books, “Green to Gold” and “Green Recovery”, and the recent “The Big Pivot”.  In his end-of-year HBR commentary, the author begins with the important 2018 sustainability themes that he sees as having lasting impact, and his belief that the year just ended brought “incredible clarity” about the scale of our challenges and opportunities.”

Clarity:  the world’s scientists sound a “final” alarm on the climate — citing the Intergovernmental Panel on Climate Change/IPCC report on where we are; that is, dear reader, in a global, universally-perilous state with just a dozen years left for bold, collective action on carbon emissions.

Clarity:  the key elements of the government of the United States of America told a similar story in the U.S. National Climate Assessment released at Thanksgiving time (with the White House attempting to bury on a slow Friday after holiday) – climate change inaction could knock off 10% of this, the world’s leading economy’s enormous GDP.  The U.S. GDP was US$19.39 trillion in 2017, said sources including the World Bank.

Clarity:  Business must dramatically change how it operates and companies must push well past their comfort zones.

There’s lots of information for you regarding the threats and challenges posed by dramatic climate change.  And, Andrew Winston points out the positive developments as well, by corporate leaders at organizations such as Unilever, Salesforce, Nike, Kroger, and Danone (which became the world’s largest B Corporation in 2018).

We present Winston’s wrap up for you in this week’s Top Story:

The Story of Sustainability in 2018: “We Have About 12 Years Left” 
(Wednesday – January 02, 2019) Source: Harvard Business School – We have about 12 years left. That’s the clear message from a monumental study from the Intergovernmental Panel on Climate Change (IPCC). To avoid some of the most devastating impacts of climate change, the world must slash carbon…

Recycling – The Circular Economy: Admirable Efforts, With Significant Challenges As The Efforts Expand & Become More Complex for Businesses

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

In these closing days of the year 2018, of course, we’ll be seeing shared expert perspectives on the year now ending and a look into the new year, 2019.  Sustainable Brands shared one person’s perspectives on three sustainability trends that are gaining momentum heading into 2019.

The commentary is authored by Renee Yardley, VP-Sales & Marketing of Rolland Inc., a prominent North American commercial & security paper manufacturer established in 1882. The company strives to be an environmental leader in the pulp and paper industry. A wide range of fine paper products is made using renewable energy, recycled fiber, and de-inked without the use of chlorine.  Rolland started making recycled paper in 1989 and adopted biogas as an energy source in 2004. The company is privately-owned and headquartered in Quebec, Canada.

The trends the author explains, do of course, affect users of all types of paper products — but also are useful for businesses in other sectors & industries.  He sees:  (1) a shifting of global recycling mindsets and in the circular economy; (2) more open collaboration and partnerships for impactful change; and (3) the need for more measurement and efforts to quantify impact.

Rolland is a paper supply company and so there is a focus on recycled (post-consumer) paper, fiber, forests, the recycled paper process, moving toward zero waste, municipal recycling in North America, and so on.

On recycling:  we are seeing reports now of problems arising in the waste stream; in the USA, municipalities are calling for a reduction of waste and automating processes (to help reduce costs).  There are new on-line marketplaces as well for buying and selling recovered items.  The “market solution” is a great hope for the future as we continue to use paper products (we are not quite a paperless society, are we?).

Part of the issues recycling advocates are dealing with:  China is restricting the import of recyclable materials (think:  that paper you put at curbside at home of business).  Consumers can be encouraged to reduce consumption but paper is paper and we all use it every day – so new approaches are urgently needed!

That leads to the second trend – developing and leveraging partnership & open collaboration:  Yardley writes that collaboration across the spectrum of an organization’s stakeholders can help to address supply-chain wide sustainability if an organization can “understand the wider system” it is operating in (citing Harvard Business Review).  And, if an organization can learn to work with people you haven’t worked with before.

Rolland, for example, leverages biogas as a main energy source, partnering with a local landfill to recover methane (since 2004).  This trend is on the rise, with the EU biogas plants expanding by 200% (2009-2015).

And then there is Measure and Manage:  Environmental measuring and reporting is an important part of a company’s sustainability journey – at the outset and continuing and at G&A Institute we stress the importance of reporting year-to-year results in a standardized format, such as in a GRI Standards report  — most important, including a GRI Content Index.

At the Sustainable Brands New Metrics conference in 2018, SAP explained that organizations integrating ESG objectives see higher employee retention, and minimizing of risk for investors.

Renee Yardley’s commentary is our Top Story choice for you this week – do read it and you’ll find excellent examples of how companies in various sectors (Ford, Microsoft, Starbucks, Patagonia, Unilever) are dealing with their sustainability commitments in the face of challenges posed.

Click here for more information on Rolland and its environmental / sustainability efforts and products.

 

This Week’s Top Story

Three Sustainability Trends Gaining Momentum for 2019
(Friday, December 14, 2018) Source: Sustainable Brands – In the spirit of looking ahead to 2019, we’ve identified three important societal trends for 2019, relating to sustainability in business…

The UN Sustainable Development Goals -– “What Matters” For 40 Sectors? G&A Institute’s Research Project Yields Key Data

by Hank BoernerG&A Institute Chair & Chief Strategist

  • An examination of materiality decisions made by 1,387 corporations in their sustainability / ESG reports on all 91 GRI G4 Specific Standard Disclosures, linked SDG Targets, and GRI Standards Disclosures 
  • Forty individual sector reports including the “Top GRI Indicators / Disclosures” and “Top SDG Targets” rankings for each sector are available for download at https://www.ga-institute.com/SDGsWhatMatters2018

Nearing the end of the 20th Century, the United Nations assembled experts to develop the eight Millennium Goals (the MDGs), to serve as blueprints and guides for public, private and social sector actions during the period 2000-2015 (the “new millennium”).

For “post-2015”, the more ambitious Sustainable Development Goals (the now familiar SDGs) were launched with 17 goals and 169 targets.

These are calls to action for rich and poor and middle-income nations from 2015 out to the year 2030.  These ambitious efforts are focused on such societal issues as improving education and health; social protection; providing job opportunities; and encouraging greater environmental protection (global climate change clearly in focus!).

The 17 SDGs are numbered for themes – “No Poverty” is Goal #1; “Clean Water and Sanitation” is Goal #6; Gender Equality is Goal #5.

As the goals were announced after an exhaustive development process (ending in 2015), sovereign nations, regions, communities, corporations, academic institutions, and other societal stakeholders began “adopting” and embracing the goals, and developing action plans and programs related to the goals.

Numerous companies found (and are finding today) that the goals aligned with the long-term corporate strategies (and vice versa).

SDG strategies were and are being amended to align the goals with critical corporate strategies; actions and programs were formulated; partnerships were sought (corporate with government and/or social sector partners and so on).  And the disclosures about all of this began to appear in corporate and institutional GRI sustainability reports.

In the months following official launch, a wave of corporations began a more public discussion of the SDGs and their adoption of specific goals – those that were material in some way to the company’s strategies, operations, culture, stakeholders, geography…and other factors and characteristics.

As the SDGs were “adopted” and embraced, companies began quickly to examine the materiality of the SDGs relative to their businesses and the first disclosures were appearing in corporate sustainability reports.

To rank the materiality of the SDGs for 40 different sectors, the G&A Institute analyst team gathered 1,387 corporate GRI G4 Sustainability / ESG reports and examined the disclosure level of each on 91 Topic Specific Standard Disclosures.  The database of the reporters materiality decisions around GRI Indicators were then linked to the 169 SDG targets using the SDG Compass Business Indicators table.

The sectors include Electricity, Beverages, Banks, Life Insurance, Media, and many more classifications (the list is available on the G&A web platform with selections to examine highlights of the research for each sector).

The results:  we now have available for you 40 separate sector report highlights containing rankings of the SDG Targets’ and the GRI G4 Indicators & GRI Standards Disclosures for each sector which can be downloaded here:  https://www.ga-institute.com/SDGsWhatMatters2018

The research results are an excellent starting point for discussion and planning, a foundation for determining sector-specific materiality of the SDGs and the GRI KPIs and disclosures as seen through the lens of these 1,387 corporate reporters across 40 sectors.

This is all part of the G&A Institute’s “Sustainability Big Data” approach to understanding and capturing the value-added corporate data sets for disclosure and reporting.  The complete database of results is maintained by G&A Institute and is used for assisting corporate clients and other stakeholders in understanding relevant materiality trends.
We welcome your questions and feedback on the year-long research effort.

Thanks to our outstanding research team who conducted the intensive research: Team Research Leaders Elizabeth Peterson, Juliet Russell, Alan Stautz and Alvis Yuen.  Researchers Amanda Hoster, Laura Malo, Matthew Novak, Yangshengjing “UB” Qiu, Sara Rosner, Shraddha Sawant, and Qier “Cher” Xue. The project was architected and conducted under the direction of Louis Coppola, Co-Founder of G&A Institute.

There’s more information for you at: https://www.ga-institute.com/SDGsWhatMatters2018

More information on the SDGs is at: https://www.un.org/sustainabledevelopment/

Contact G&A Institute EVP Louis Coppola for information about how G&A can help your company with SDGs alignment at:  lcoppola@ga-institute.com

Corporate America & Climate Change: McDonald’s Sets Pace for Strategies & Action in Global Fast-Food Industry

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

Game changer – early adopter – first mover – tipping point – striving for excellence:  These are some of the familiar themes of their work offered by best-selling business authors. These phrases help to frame our understanding of established or emerging trends.

Peter Economy, the “leadership guy” at Inc. magazine, offers us his take on the McDonald’s food chain announcement that “will change the future of the fast-food industry”.

Leadership:  The company says that 84 percent of its trademark “McCafe Coffee” for the U.S. outlets (and 54% globally) is verified as sustainably sourced.

That means the company is on track to meet its goal of 100% sustainably sourced coffee everywhere by year 2020.

Keep in mind that the familiar golden arches food outlets sell more than 500 million cups of coffee annually.  (The company has 37,000 restaurants in 120 markets, serving 69 million people daily.)

Why take this course of action?  The company says rising temperatures may dramatically affect coffee production and so McD will work with “thousands of franchisees, suppliers and producers” on the future of coffee production — and other societal issues related to climate change.

The “size and scale” of the McD brand operations will help to make a difference in this and other climate change matters, the company thinks.

For example, on beef production – the company sells more than 1 billion pounds of beef annually – McD ranks among the highest of all fast food companies in the Business Benchmark on Farm Animal Welfare…demonstrating concern about animal welfare.

McDonald’s in 2018 works through its “Scale for Good” initiative — which includes addressing such challenges as packaging and waste, restaurant energy usage and sourcing, and beef production.

The company will work to reduce GhG emissions — to prevent 150 million metric tons of GhG emissions from release to the atmosphere by 2030. That plan aims to reduce GhG emissions related to restaurants and offices by 2030 from the 2015 base year by 36%.  There is also the commitment to reduce emissions intensity across the supply chain against 2015 levels.

Note that franchisee operations (stores), suppliers and products account for 64% of McDonald’s global emissions – the company’s effort will be among the most sweeping in its industry to address the entire footprint of operations.

If you are a McDonald’s supplier or business partner – take note!  If you are a competitor – take note!

As part of its sustainability journey, McDonald’s has adopted SDG Goal #7 (Affordable and Clean Energy), Goal 13 (Climate Action) and Goal 17 (Partnerships for the Goals).

Click here for more information.

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McDonald’s Stunning New Coffee Sustainability Announcement Will Completely Change the Future of Fast Food
(Friday – November 30, 2018) Source: Inc. – Today, fast-food giant McDonald’s made a stunning announcement that will change the future of the fast-food industry. According to this announcement, 84 percent of McDonald’s McCafé coffee for U.S. restaurants (and 54 percent…