CEOs & Business Leaders Speak Out on Voter Rights – Corporate Citizenship, USA-style On Display

April 14 2021

By Hank Boerner – Chair & Chief Strategist – G&A Institute 

Corporate America and “Corporate Citizenship” – Today, that can mean lending the CEO and company voice to address critical societal issues in the United States of America.  Some applaud the move, while others attack the company and its leader for their position on the issues in question.   

In this context, powerful messages were delivered today from the influential leaders of the US corporate community – clearly voicing concern about the American electoral process and the rights of all qualified voters in the midst of mounting challenges to the right-to-vote. 

What the CEOs, joined by other influentials in the American society, had to say to us today:

As Americans we know that in our democracy we should not expect to agree on everything.

However – regardless of our political affiliations, we believe the very foundation of our electoral process rests upon the ability of each of us to cast our ballots for the candidates of our choice.

We should all feel a responsibility to defend the right to vote and oppose any discriminatory legislation or measure that restrict or prevent any eligible voter from having an equal and fair opportunity to cast a ballot.

Who is saying this? A list of bold name signatories in an advertisement that appears today in The New York Times and The Washington Post – these messages (these above and more) splashed across two full pages (a “double truck” in newspaper language) with a dramatic roster of prominent names from Corporate America. And prominent accounting and law firms with bold name corporate clients. And not-for-profits. And individuals. Celebrities.  People and organizations that every day in some way touch our lives. 

This advertisement certainly continues to set the foundation in place for pushback by powerful people and organizations as various state legislatures take up electoral voting measures. And pushes back against the “Big Lie” that the November 2020 elections at federal, state and local levels were widely fraudulent.

The names on the two pages jump out to capture our attention: Apple. American Express. Amazon. Dell Technologies. Microsoft. Deloitte and EY and PwC. Estee Lauder. Wells Fargo. BlackRock. American Airlines and JetBlue and United Airlines. Steelcase. Ford Motor and General Motors. Goldman Sachs. MasterCard. Vanguard. Merck. Starbucks. IBM. Johnson & Johnson. PayPal. T. Rowe Price. And many more.

CEOs including Michael R. Bloomberg (naturally!). Warren Buffett. Bob Diamond, Barclay’s. Jane Fraser, Citi. Brian Doubles, Synchrony. Brian Cornwell, Target. Roger Crandall, Mass Mutual.

Luminaries joined in as individual in support of the effort: David Geffen. George Clooney. Naomi Campbell. Larry David. Shonda Rhimes. Larry Fink. Demi Lovato. Lin-Manuel Miranda. Many more; think about the influence of their influencers in our American society in 2021.

And we see the names of these law firms: Akin Gump. Arnold Porter. Milbank. Morgan Lewis & Bockius. Fried Frank. Cleary Gottlieb. Holland and Knight. Ropes & Gray. (If you are not sure of who these firms and many more law firm signatories are, be assured that in the board room and C-suite and corporate legal offices these are very familiar names).

And the “social sector” institutions/organizations signing on include leaders of the Wharton School, Morehouse College, Spelman College, University of Pennsylvania, Penn State, NYU Stern, United Negro College Fund, Hebrew SeniorLife, and Council for Inclusive Capitalism.

The New York Times covered the story of the advertising message in an article in the Business Section – Companies Join Forces to Oppose Voting Curbs (bylined by Andrew Ross Sorkin and David Gelles). Subhead: A statement that defies the GOPs call to stay out of politics.

The effort was organized by prominent Black business leaders including Ken Chennault, until recently the highly-regarded CEO of American Express, and Ken Frazier, the also-widely-admired CEO of Merck.

Recall that Senate Minority Leader Mitch McConnell corporations said that corporations should “stay out of politics”. The recent State of Georgia legislation addressing voting rights was a trigger for prominent corporate leaders (such as heads of Coca Cola, Delta Airlines, both headquartered in Atlanta) to criticize measures that could deter or inhibit minority voter populations from exercising their rights.  Leader McConnell reacted to this. 

The Times quoted Kenneth Chennault: “It should be clear that there is overwhelming support in Corporate America for the principle of voting rights…these are not political issues…these are the issues that we were taught in civics…”

Also made clear: The CEOs, social influential and thought leaders including celebrities involved in the ad message effort were non partisan and not attacking individual states’ legislative efforts.

Remember The Business Roundtable’s recent re-alignment of the groups mission statement to focus on “purpose”? According to the Times report, the subject of the ad effort was raised on an internal call and CEOs were encouraged to sign on to the statement; many CEOs did.

Where does this go from here? Corporate executives are speaking out separately on the legislative measures being discussed in individual states that appear to or outright are clear about restricting rights of minority populations. That happened in Georgia recently. Coca Cola and Delta Airlines were hit with criticism; those companies were not signatories on the ad today. Home Depot (also HQd in Atlanta) waffled; the company is not represented on the signatory line nor was there public criticism of the legislature’s effort.

Perspective: While corporate citizenship has been an area of focus and public reporting for many years at a number of large cap public companies, the glare of publicity centered on the question of “what are you doing to help advance society on critical issues as a corporate citizen” is more recent.

The spotlight is intensifying on voting rights (as we see today) and also on climate change, diversity & inclusion, human capital management (especially in the Covid crisis), investment in local communities, in supporting public education, in hiring training & promotion of women and minorities, doing business with nations with despot leaders (think of Burma/Myanmar), equality of opportunity for all populations…and many other issues.

And so today’s advertising splash with CEOs especially putting their stake and their company’s stake in the ground on these types of issues is something we can expect to see continue and even expand in the coming weeks.

The division lines in the USA are certainly clear, especially in politics and public sector governance, and we are seeing that corporate leaders are responding to their stakeholders’ expectations…of being “a good corporate citizen”.

And it’s interesting to see the perspectives shared that even the meaning and understanding of the responsibilities of the “corporate citizen”) is defined along some of the lines that divide the nation.

Interesting footnote:  Clearly illustrating the political and philosophical divide, the members of the Republican Party who are organized as the opposition to the GOP today — The Lincoln Project — called on followers to sign on to an email that singles out JetBlue (one of the ad signatories) for contributing to political campaigns of what the Lincoln Project calls “seditionists”.  These are elected officials who “support voter suppression”. Says the project: If enough of us make it clear that we won’t stand inequality, voter supression and sedition, we will make a difference.

The battle lines are clearly drawn in voting rights issues. 

The advertisement today:

April 14 2021 – The New York Times and The Washington Post messages:

 

 

 

 

Expanding Public Debates About the “What” & “How” of Corporate ESG Disclosure

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

March 2, 2021

Corporate sustainability / ESG reporting — What to disclose? How to frame the disclosures (context matters!)? What frameworks or standards to use?  Questions, questions, and more questions for corporate managers to consider as ESG disclosures steadily expand.

We are tuning in now to many more lively discussions going on about corporate ESG / sustainability et al public disclosures and structured reporting practices — and the growing complexity of all this disclosure effort, resulting often in disclosure fatigue for corporate practitioners!

Corporate managers ponder the important question:  which of the growing number of ESG frameworks or standards to use for disclosures? (The World Economic Forum (WEF) describes some 600 ESG guidelines, 600 reporting frameworks and 360 accounting standards that companies could use for reporting.  These do vary in scope, quantity, and quality of metrics.)

In deciding the what and how for their reporting, public companies consider then the specifics of relevant metrics and the all-important accompanying narrative to be shared to meet users’ rising information needs…in this era of emergent “stakeholder capitalism”.

Of course, there is the question for most companies of which or what existing or anticipated public sector reporting mandates will have to be met in various geographies, for various sectors and industries, for which stakeholders.

We here questions such as — how to get ahead of anticipated mandates in the United States if the Securities & Exchange Commission (SEC) does move ahead with adoption of new rules or at least strong guidance for corporate (and investor) sustainability reporting.

The European Union is today ahead in this area, but we can reasonably expect the USA to make important moves in the “Biden Climate Administration” era.  (The accounting standards boards are important players here as well as regulatory agencies in the sovereign states.)

Company boards, executive committees, professional staff, sustainability team managers wrestle with this complex environmental (for ESG disclosure) as their enterprises develop strategies, organize data flows, set in place data measurement protocols, and assemble the ESG-related content for public disclosure. (And, for expanded “private sharing” with ESG ratings agencies, credit risk agencies, benchmark/index managers, to meet customer ESG data requests, and more).

The list of issues and topics of “what” to disclose is constantly expanding, especially as institutional investors (asset owners and their managers) develop their “asks” of companies.

Climate change topics disclosure is at the top of most investor lists for 2021. Human Capital Management issues have been steadily rising in importance as the COVID-19 pandemic (and spread of variants) affects many business enterprises around the globe.

In the USA, SEC has new guidance for corporate HCM disclosures.  Political unrest is an issue for companies.  Anti-corruption measures are being closely examined.

Diversity & Inclusion (including in the board room and C-suite) is growing in importance to investors.

Also, physical risk to corporate assets in the era of superstorms and changing weather patterns – what are companies examining and then reporting on?  Exec compensation with metrics tied to performance in ESG issues is an area of growing interest.

We are monitoring and/or involved in multiple discussions and organized initiatives in the quest to develop more global, uniform, comparable, reliable, timely, complete, and assured corporate sustainability metrics, and accompanying narrative.  And, to provide the all-important context (of reported data) – what does the data mean?  It’s a complicated journey for all involved!

This week we devote the content of this week’s Highlights newsletter to various elements of the public discussions about the many aspects of the journey.

Here at G&A Institute, our team’s recommended best practice:  use multiple frameworks & standards that are relevant to the business and meet user needs; these are typically then disclosed in hybridized report where multiple standards are harmonized and customized for the relevant industries and sectors of the specific company’s operations and reflect the progress (or even lack of) of the enterprise toward leadership in sustainability matters.

This approach helps to reduce disclosure fatigue for internal corporate teams challenged to choose “which” framework or standard and the gathering of data and other content for this year’s and next year’s ESG disclosures.

We shared our thoughts in a special issue of NIRI IR Update, published by the National Investor Relations Institute, the important organization for corporate investor relations officers:


Here are our top selections in the content silos for this week that reflect the complexity of even the public debates about corporate ESG disclosure and where we are in early-2021.

TOP STORIES

The ever-evolving world of ESG investing from a few different points of view. What are the providers of capital examining today for their portfolio or investable product decision-making?  Here are some shared perspectives:

Game Changing News on Climate Crisis Actions – President Biden Announces “Whole of Government” Plans

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

What a time to be a sustainability advocate – January 2021 is it!  There was significant news in the USA on matters related to meeting climate change challenges. Start with the Biden-Harris Administration bold moves on addressing the climate crisis…

President Joseph R Biden, in his first days in office signed Executive Orders to commit the “whole of government” to addressing the climate crisis in the USA — and around the world.

The President of the United States of America has broad, sweeping powers as the elected head of the Executive Branch of government.  Presidential EO”s must be anchored in the existing laws of the land (such as the Clean Air Act), be within the powers of the presidency as set out by the Constitution of the United States, and serve as the “directives” and instructions (as well as memoranda and “findings” and more) from the head of the Executive Branch to the organs of the Federal government of the United States of America.

The American Historical Institute explains the EO serves to deliver direct orders, intrepretation of law, provide guidance for future regulatory actions, structure government institutions or processes, and make political statements (foundations of policy). This is an often-used approach creating policy.

American heads of state have used the EO process at least 20,000 times dating back to the days of President George Washington – these orders can be challenged by the other two branches of the U.S. government (Judicial and Legislative).

The Biden Executive Orders are assembled in “Tackling the Climate Crisis at Home and Abroad” – the EOs issued “take bold steps” to combat the climate crisis at home in the USA and throughout the world with many elements included (starting with rejoining the Paris Agreement). Consider:

  • The climate crisis will be “centered” now in U.S. foreign policy and in national security considerations.
  • There will be a climate leaders’ summit in the USA on Earth Day (in April 2021).
  • The Major Economies Forum will be re-convened.
  • A new Special Presidential Envoy is appointed (former Secretary of State John Kerry).
  • The USA’s process to address the “Nationally Determined Contribution” (NDC) called for in the Paris Accord is now underway.
  • The National Intelligence Estimate on security implications of climate change is to be prepared by the Director of National Intelligence for the White House.
  • The White House Office of Domestic Climate Policy is established (headed by former US EPA Administrator Gina McCarthy).
  • Important: the National Climate Task Force is created; this brings the top leaders of the Federal government across 21 agencies (all Cabinet officers) to implement the president’s climate agenda.
  • Clean energy job creation is an important objective – this to be part of the “Build Back Better” initiatives.
  • “Made in America” for manufacturing is a pillar; the Order directs all agencies to buy “carbon-pollution-free” electricity for all government facilities and clean, zero-emission vehicles to help create good paying, union jobs and stimulate clean energy industries.

There’s more – rebuilding infrastructure (focus on “green” here); advancing conservation; reforestation; revitalizing communities left behind as the transition to clean energy displaced workers in fossil fuel extraction and processing; developing approaches to secure “environmental justice” for communities; spurring economic growth; bringing science back into climate change discussions; creating a Presidential Council of Advisors on Science and Technology.

The White House is now reviewing more than 100 of the Executive Orders of the prior administration to reinstate protections for air, water, land and communities.

This is sweeping and presents abundant opportunities and risks for both the corporate community and the capital markets. (As the EOs were being announced, General Motors unveiled its plan to “go all electric” in vehicle manufacture by 2035!)

We have prepared a Resource Paper to explain and explore the many implications for the Biden-Harris Administration moves to address the climate crisis. You can download the paper here: https://www.ga-institute.com/research-reports/resource-papers/biden-harris-white-house-actions-a-ga-resource-paper.html

In the days ahead we will be preparing numerous commentaries for this blog on the many (!) developments aligned with, and supporting, the presidential moves of this week. Stay Tuned!

Turmoil in the USA / Washington Capitol Terror Attacks – Corporate Sector Responses to Threats to the Nation

Prepared January 20 2021 – Inauguration Day in the USA

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

These are troubled times in the United States of America. After the national elections in November 2020, political and social rhetoric became even more heated and widepread sharing of rumors and lies intensified than even in the weeks leading up to the ballots being cast by well more than 155 million citizens in the 50 states of the Republic.  (There are more than 200 million registered voters in all of the states.)

Moving toward the inauguration of the new president the major social media platforms unfortunately served as rioter assembly stations and important [negative] information sharing tools that helped to spread lies, rumors, and volumes of false and dangerous information.  The large platforms stand accused now of having helped to enable many thousands of protestors to travel to and assemble in Washington, D.C. for a January 6 rally that quickly spun out of control.

There will likely be short- and longer-term fallout here: What was a growing public debate on the role of social media and the focus on tech companies at the center of controversy (think of Facebook, Twitter, Google, others) quickly became a public ranting from all sides of the political spectrum.

The tempo of the public policy debate has sharply increased:  What actions should be taken to address concerns about the tech leaders and their role in spreading false and dangerous-to-democracy content? (Stay tuned to this important public policy debate in 2021.)

To recap what happened:  On January 6th, 2021 a mob of an estimated 8,000-plus men and women attended a rally and then took the point to travel with an even larger group behind them, along the major thoroughfares that lead from the White House and nearby National Mall to the Capitol Hill complex that houses the U.S. Congress (the House of Representatives and US Senate) -– ranting slogans and waving their flags along a brisk and angry 3.6 mile march (4.8 kilometers).

By the time the government complex on the hill was reached the point of the mob was out of control. The “tip of the spear” leadership group quickly pierced the Capitol Hill ramparts and the mob poured in behind to do their damage inside the halls of Congress.

The mob -– characterized by many now as being in fact domestic terrorists -– swarmed the complex, confronted a police force numbering about 1,400, swept past those guardians and into the Capitol Building to wreak havoc, steal items such as the Speaker of the House’s office laptop, and destroy government property.

They were there for hours. And much of this was broadcast live, on various news platforms and including on social media — by participants!

The mob even seemed to be threatening the very lives of the Members of House and Senate — and it seems, the well-being and maybe the life of the Vice President of the United States (Michael Pence) who also served as presiding officer of the US Senate during the crucial vote to accept the 2020 Presidential voting results. (The mob’s intention was to overthrow Congress and change the vote outcome to make Donald Trump the winner.)

The  widespread criticism of these actions was immediate; much of the American public was outraged. Anger was directed at the mob, at the social media platforms helping to spread the messages of the insurrection leaders and participants, at the President of the United States and his political allies for encouraging the unrest.

24/7, major news media published, broadcast and telecast news and the volumes of criticism — and, indeed the collective outrage of most of the nation – out to all of the nation and world.

A Day of Infamy for the USA – and Corporate Response

In Utah, the Deseret News described this in its headline as “Jan. 6, 2021: Another day that will live in infamy for Americans”.

An important sea change:  The corporate community, including major players in financial services sector industries, quickly became very visible among the critics. For some companies the silence about the “Steal the Vote” protests was a form of diffidence or even support. That changed!

Prominent corporate leaders and their trade associations blasted the actions, of both rioters and supporters, and took (and continue to take) actions in response to the horror that they witnessed. We bring you highlights of some of this initial response this week.

Following the attack there was dramatically expanding news of what was to come as a new legislative and executive branch was taking shape  -– the days after January 6th were climaxed by the inauguration of the new president and vice president on January 20th (done!) and the convening of a new US Senate leadership team (in process as we write this).

All of this news and opinion was being shared in the context of the continuing threat posed to the American nation by homegrown, domestic terrorists.

This is usually a time of great celebration of the peaceful transfer of power, a 200-plus year tradition in the USA that occurs every four years following the presidential elections.  Instead, these January days became a time of sorrow and sadness and disappointment.  All that was being reported out to the world as well.

The days leading up to the January 20th inaugural event had most Americans very jittery, with media reports of continued threats (such as possible physical harm to the national and state capitals, more heated partisan political talk, even the possibility of threats to human life posed by armed citizens in so-called ragtag “militias”).

There were more U.S. military members present in Washington DC on Inauguration Day  to protect our capital city than were present in the Middle East conflict zones.

The ongoing turmoil poses a serious threat to the American Experiment in Democracy as well as to the long-term symbolism of the Capitol Hill complex that many citizens of America (and even many in the world) consider to be a shining city on a hill, the citadel of democratic rule.

With this commentary we bring you some highlights of the immediate corporate sector response, and what some see as the responsibility of the corporate leadership to help move the nation forward.  The tempo of the corporate response is quickening and we’ll share more with you in our G&A Institute’s Sustainability Highlights newsletter and in this blog. 

TOP STORIES

Here is some of the immediate Corporate Sector responses to the mob’s January 6 attack on the US Capitol – with specific corporate responses that target the financial of candidate campaigns. The corporation’s role in society is in even sharper focus now.

Looking forward:  The news media is now also focused on the future – there is a new administration in place now, led by President Joseph Biden, VP Kamala Harris, and a  House and Senate led by the Democratic Party.  The focus on ESG issues is intensifying:

We will be sharing considerably more news along these lines in the days ahead. Stay Tuned!

Picking Up Speed – Adoption of the FSB’s TCFD Recommendations…

January 21 2021

by Hank BoernerChair & Chief StrategistG&A Institute

Countries around the world are tuning in to the TCFD and exploring ways to guide the business sector to report on ever more important climate related disclosures.  Embracing of the Task Force recommendations is a key policy move by governments around the world.

After the 2008 global financial crisis, the major economies that are member-nations of the “G20” formed the Financial Stability Board (FSB) to serve a collective think tank and forum for the world’s leading developed countries to develop strong regulatory, supervisory, and other financial sector policies (guidance, legislation, regulations, rules).

Member-nations can adopt the policies or concepts for same developed collectively in the FSB setting back in their home nations to help to address financial sector issues with new legislative and/or adopted/adjusted rules, and issue guidance to key market players. The FSB collaborates with other bodies such as the International Monetary Fund (the IMF).

FSB operates “by moral suasion and peer pressure” to set internationally-agreed to policies and minimum standards that member nations then can implement at home. In the USA, members include the SEC, Treasury Department and Federal Reserve System.

In December 2015, as climate change issues moved to center stage and the Paris Agreement (at COP 21) was reached by 196 nations, the FSB created the Task Force on Climate-related Financial Disclosures, with Michael Bloomberg as chair.  The “TCFD” then set out to develop guidelines for corporate disclosure on climate change-related issues and topics.

These recommendations were released in 2017, and since then some 1,700 organizations endorsed the recommendations (as signatories); these included companies, governments, investors, NGOs, and others.

Individual countries are taking measures within their borders to encourage corporations to adopt disclosure and reporting recommendations. There are four pillars -– governance, strategy, risk management, and metrics & targets.

A growing number of publicly-traded companies have been adopting these recommendations in various ways and publishing standalone reports or including TCFD information and data in their Proxy Statements, 10-ks, and in sustainability reports.

The key challenge many companies face is the recommendations for rigorous scenario testing to gauge the resiliency of the enterprise (and ability to succeed!) in the 2C degree environment (and beyond, to 4C and even 6C),,,over the rest of the decades of this 21st Century.

Many eyes are on Europe where corporate sustainability reporting first became a “must do” for business enterprises, in the process setting the pace for other regions.  So – what is going on now in the region with the most experienced of corporate reporters are based?  Some recent news:

The Federal Council of Switzerland called on the country’s corporations to implement the TCFD recommendations on a voluntary basis to report on climate change issues.

Consider the leading corporations of that nation — Nestle, ABB, Novartis, Roche, LarfargeHolcim, Glencore — their sustainability reporting often sets the pace for peers and industry or sector categories worldwide.

Switzerland — noted the council — could strengthen the reputation of the nation as global leader in sustainable financial services. A bill is pending now to make the recommendations binding.

The Amsterdam-based Global Reporting Initiative (GRI) is backing an EU Commission proposal for the European Financial Reporting Advisory Group (EFRAG) to consider what would be needed to create non-financial reporting standards (the group now advises on financial standards only). The dual track efforts to help to standardize the disparate methods of non-financial reporting that exist today.

The move could help to create a Europe-wide standard. The GRI suggests that its Global Sustainability Standards Board (GSSB) could make important contributions to the European standard-setting initiative.

And, notes GRI, the GSSB could help to address the critical need for one global set of sustainability reporting standards.  To keep in mind:  the GRI standards today are the most widely-used worldwide for corporate sustainability reporting (the effort began with the first corporate reports being published following the “G1” guidelines back in 1999-2000).

The United Kingdom is the first country to make disclosures about the business impacts of climate change using TCFD mandatory by 2025.

The U.K. is now a “former member” of the European Union (upon the recent completion of “Brexit” process), but in many ways is considered to be a part of the European region. The UK move should be viewed in the context of more investors and sovereign nations demanding that corporations curb their GhG emissions and help society move toward the low-carbon economy.

In the U.K., the influential royal, Prince Charles — formally titled as the Prince of Wales — has also launched a new charter to promote sustainable practices within the private sector.  He has been a champion of addressing climate challenges for decades.

The “Terra Carta” charter sets out a 10-point action plan designed to reduce the carbon footprint of the business sector by year 2030.  This is part of the Sustainable Markets Initiative launched by the prince at the January 2020 meeting in Davos, Switzerland at the World Economic Forum gathering.

Prince Charles called on world leaders to support the charter “to bring prosperity into harmony with nature, people and planet”. This could be the basis of global value creation, he explains, with the power of nature combined with the transformative innovation and resources of the private sector.

We closely monitor developments in Europe and the U.K. to examine the trends in the region that shape corporate sustainability reporting — and that could gain momentum to become global standards.  Or, at least help to shape the disclosure and reporting activities of North American, Latin American, Asia-Pacific, and African companies.

It is expected that the policies that will come from the Biden-Harris Administration in the United States of America will more strenuously align North American public sector (and by influence, the corporate sector and financial markets) with what is going on in Europe and the United Kingdom.  Stay Tuned!

TOP STORIES FOR YOU FROM THE UK AND EUROPE

Items of interest — non-financial reporting development in Europe:

About “Stakeholder Capitalism”: The Public Debate

Here is the Transition — From the Long-Dominant Worldview of “Stockholder Capitalism” in a Changed World to…Stakeholder Capitalism!

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

October 2020

As readers of of G&A Institute’s weekly Sustainability Highlights newsletter know, the shift from “stockholder” to “stakeholder” capitalism has been underway in earnest for a good while now — and the public dialogue about this “21st Century Sign of Progress” has been quite lively.

What helped to really frame the issue in 2019 were two developments:

  • First, CEO Larry Fink, who heads the world’s largest asset management firm (BlackRock) sent a letter in January 2019 to the CEOs of companies in portfolio to focus on societal purpose (of course, in addition to or alongside of corporate mission, and the reasons for being in business).
  • Then in August, the CEOs of almost 200 of the largest companies in the U.S.A. responded; these were members of influential Business Roundtable (BRT), issuing an update to the organization’s mission statement to embrace the concepts of “purpose” and further cement the foundations of stakeholder capitalism.

These moves helped to accelerate a robust conversation already well underway, then further advanced by the subset discussion of Corporate America’s “walking-the-talk” of purpose et al during the Coronavirus pandemic.

Now we are seeing powerful interests weighing in to further accelerate the move away from stockholder primacy (Professor Milton Friedman’s dominant view for decades) to now a more inclusive stakeholder capitalism.  We bring you a selection of perspectives on the transition.

The annual gathering of elites in Davos, Switzerland this year — labeled the “Sustainable Development Impact Summit” — featured a gaggle of 120 of the world’s largest companies collaborating to develop a core set of common metrics / disclosures on “non-financials” for both investors and stakeholders. (Of course, investors and other providers of capital ARE stakeholders — sometimes still the inhabiting the primacy space on the stakeholder wheel!)

What are the challenges business organizations face in “making business more sustainable”?

That is being further explored months later by the World Economic Forum (WEF-the Davos organizers) — including the demonstration (or not) of excellence in corporate citizenship during the Covid-19 era. The folks at Davos released a “Davos Manifesto” at the January 2020 meetings (well before the worst impacts of the virus pandemic became highly visible around the world).

Now in early autumn 2020 as the effects of the virus, the resulting economic downturn, the rise of civil protests, and other challenges become very clear to C-suite, there is a “Great Reset” underway (says the WEC).

The pandemic represents a rare but narrow window opportunity to “reflect, reimagine, and reset our world to create a healthier, more equitable, and more prosperous future.”

New ESG reporting metrics released in September by the World Economic Forum are designed to help companies report non-financial disclosures as part of the important shift to Stakeholder Capitalism.

There are four pillars to this approach:  People (Human Assets); Planet (the impact on natural environment); Prosperity (employment, wealth generation, community); and Principles of Governance (strategy, measuring risk, accounting and of course, purpose).

The WEF will work with the five global ESG framework and standard-setting organizations as we reported to you recently — CDSB, IIRC, CDP, GRI, SASB plus the IFAC looking at a new standards board (under IFRS).

Keep in mind The Climate Disclosure Standards Board was birthed at Davos back in 2007 to create a new generally-accepted framework for climate risk reporting by companies. The latest CDSB report has 21 core and 34 expanded metrics for sustainability reporting. With the other four collaborating organizations, these “are natural building blocks of a single, coherent, global ESG reporting system.”

The International Integrated Reporting Council (IIRC, another of the collaborators) weighed in to welcome the WEF initiative (that is in collaboration with Deloitte, EY, KPMG and PWC) to move toward common ESG metrics. And all of this is moving toward “COP 26” (the global climate talks) which has the stated goal of putting in place reporting frameworks so that every finance decision considers climate change.

“This starts”, says Mark Carney, Governor, Bank of England, and Chair of the Financial Stability Board, “with reporting…this should be integrated reporting”.

Remember, the FSB is the sponsor of the TCFD for climate-related financial disclosure.  FSB is a collaboration of the central banks and treasury ministries of the G-20 nations.

“COP 26 was scheduled for November in Glasgow, Scotland, and was postponed due to the pandemic. We are now looking at plans for a combined 26 and 27 meeting in November 2021.”  Click here for more information.

There is a lot of public dialogue centered on these important moves by influential players shaping and advancing ESG reporting — and we bring you a selection of those shared perspectives in our Top Stories in the Sustainability Highlights newsletter this week.

Top Stories On Davos & More

And then there is this, in the public dialogue on Stakeholder Capitalism, adding a dash of “reality” from The New York Times:

Cradle-to-Cradle: Method Case Study

Guest Column by Lama Alaraj – Analyst-Intern, G&A Institute

We live in a world where our society is run through consumerism and capitalist gains. As a result, this system has had adverse effects on the health of our environment.

One of the major industries in our economies is cleaning products, where demand is unlikely to decrease. Consumer behavior influences the supply of cleaning products in our economy, and as a result there is a rise in demand for the ‘green products’.

As consumers it is important for us to know what hazardous chemicals we are bringing into our homes. In this industry transparency is not enough, as the average human cannot understand chemical labels (citation, Grotewohl, 2018 – see bibliography at end).

I believe that we need more companies to shift their business model to be more of a commitment towards achieving holistic sustainability.

There are many different strategies and business models that companies can apply to experience financial growth, with sustainability and the environment in mind.  The focus of this essay will be on the cradle-to-cradle approach — a more sustainable business model that has proven to work in the cleaning products industry.

The cradle-to-cradle approach is a system that moves away from the conventional linear manufacturing process, which focuses on taking raw materials to produce products that will end up disposed, towards a circular approach by closing the loop in production and eliminating waste.

• This process requires businesses to change their business model towards one that incorporates conscious sustainable thinking at the core (Brennan et al, 2015).

• The approach talks about two types of metabolism: biological and technical (Severis et Rech, 2019).

• Each has corresponding nutrients — ‘biological nutrients’ — are materials that can be safely returned to the biosphere, and ‘technical nutrients’ are manmade materials that can be reused (Severis et Rech, 2019).

Goal: Reuse or Return to the Environment

The goal of this approach is to create products that can either be reused or return to the environment (such as though composting) and therefore eliminating the concept of waste at the end of the life cycle of a material which is related to the common cradle-to-grave operation (Severis et Rech, 2019).

An important term that was a prelude to the birth of the cradle-to-cradle approach is the strategy of being eco-effective. This strategy is defined as using resources that maximize the benefits of a product or a service in order for the material to have a continuous life cycle (Brennan et al., 2015).

For the cradle-to-cradle approach to be successful and sustainable in its application by a business, it needs to adhere to three guidelines: waste equals food, use renewable energy, and celebrate diversity (Brennan et al, 2015). For example:

(1) Waste equals food is essentially where the concept of upcycling comes from. By not creating more waste, companies can look at resources that have already been used and recycled, and utilize these materials to their maximum potential.

This guideline pushes businesses to be creative and innovative, enabling them to design a product that has multiple life cycles, and does not lose its value or superiority when it is recycled into something different (Brennan et al, 2015).

(2) The second guideline, use of renewable energy, pushes firms to switch from fossil fuels and to generate clean energy through the use of solar, wind, hydro or biomass technologies. This fits the framework of using what is naturally present and contributes to a holistic approach (Severis et Rech, 2019).

The final approach is about incorporating diversity within the business, through innovation. As part of this guideline firms are required to design products that “support biodiversity, socio-cultural diversity and conceptual diversity” (Ankrah et al.,2015).

This encourages business leaders and their firms to look outside the box and design products that avoid environmental pollution and strive for maximum material reutilization.

Cradle-to-Cradle Certification

To encourage and enable business to apply the cradle-to-cradle approach, the Cradle-to-Cradle certification was established in 2005. Since then, 200-plus companies have produced products that are certified (Source: Cradle to Cradle Products Innovation Institute, 2020).

The rise in Cradle-to-Cradle certified products is influenced by increased environmental awareness, growing consumer demands for green products and business financial savings.

According to research through the Ellen MacArthur Foundation, businesses in the European Union could save up to US$630 billion a year by switching to a cradle-to-cradle model and operating through a circular production system (Cradle-to-Cradle Products Innovation Institute, “CCPII” – 2020).

For instance, Shaw industries, a global carpet manufacturer, switched to a cradle-to-cradle business model in 2007 and as part of this switch, Shaw achieved a 48% increase in water efficiency, and improved energy efficiency, both of which have major environmental benefits (CCPII, 2020).

Financial benefits of this approach allowed Shaw to save US$2.5 million in 2012 alone (CCPII-2020). The benefits of this approach can be vast and are realized through economic, social and environmental gains.

One economic benefit is cost reduction — savings achieved through the reuse of materials, and resource efficiency by saving on water and energy spending (CCPII-2020).

Moreover, these benefits are eliminating toxic waste and pollution, and giving more than one life cycle to a product, through upcycling the material and creating something different in order to operate through environmental awareness and positive sustainable practices (Brennan et al, 2015)

Looking at Cleaning Products

Cleaning products typically contain many hazardous chemicals that can contaminate our groundwater, lakes and oceans, and lead to the formation of algal blooms which threaten marine life. Not only do these chemicals harm our ecosystems, they can also have adverse effects on humans, if exposed to high levels of these chemicals (Grotewohl, 2018).

This is where Method — a United States-based company — decided to take matters into their own hands. They are the “People against dirty”, their infamous slogan is an homage to their commitment against traditional cleaning products that are harmful to our environment, and us.

Method is one of the first green cleaning companies to have a full line of cradle-to-cradle certified products. The company uses non toxic, and full biodegradable formulas, ensuring their products adhere to the unique process of cradle-to-cradle for maximum reutilization (Ryan et al, 2011).

This sophisticated and innovative company values renewable energy at the core of their production process, ensuring to me the renewable energy guideline of cradle-to-cradle fundamentals.

The firm has even opened the first LEED-platinum -certified plant in their industry (Chow, 2015). Everything at this factory is made on site, a one-stop shop approach. The plant runs on wind and solar energy; they have utilized the space in an environmentally-conscious way by allowing Gotham Greens to use the plant’s entire rooftop as a greenhouse in order to harvest organic produce for the local markets and communities (Chow, 2015).

In this way Method demonstrates that the management thinks beyond profitability of the end product, and also looks to maximize every space in their factory and seek inclusivity and to benefit society through their community centered approach, meeting both the renewable energy and diversity guideline of the cradle-to-cradle approach.

The process of recycling actually produces toxins and pollution, so companies encouraging their consumers to recycle is not enough because they are not breaking the system of waste, just contributing to it (Ryan et al., 2011).

Competitors in the cleaning industry typically use white PET to package their goods, as a way to brand their green commitment. However, this type of plastic does not filter through recycling plants and so ends up in landfills (Ryan et al., 2011).

Method’s leaders did their homework, and rather than sticking to traditional industry trends, they designed packaging that is 100% recyclable and made from Post Consumer Recycled PET (Ryan et al., 2011).

In addition to Method’s cleaning materials being sustainably sourced, their packaging is made of 100% recycled bottles, reducing waste in their production process. By upcycling its waste, Method uses up to 70% less energy to manufacture its products (Ryan et al., 2011). Moreover, the plastics used are carefully chosen to ensure they can be recycled and reused, operating a closed loop production system.

For Method, waste is truly fuel, upholding the first guideline in the approach.

Looking at Laundry Detergents

Laundry detergent on the commercial scale is typically water intensive (“80% of detergent is water”), and causes a lot of waste (Ryan et al., 2011). Conventionally, it is packaged to make consumers believe that more is better, so consumers use more detergent than needed (like an optical illusion of sorts).

The first breakthrough in innovation a better detergent was in 2004, when Method launched their ‘three times concentrated’ formula, which uses a lot less water and a lot less energy to clean, making it more environmentally friendly than conventional detergents (Ryan et al., 2011).

This sparked a competitive race in the industry, and major names in the game launched their own versions of concentrated detergents (Ryan et al., 2011). Method creators did not patent their formula, rather they wanted to encourage their competitors to produce more environmentally-friendly and cleaner detergents (Ryan et al., 2011).

In 2010 Method made waves again, and launched their eight times concentrated detergent, and this time it became the first detergent to receive an official cradle-to-cradle certification for its innovative design, non toxic, biodegradable and reduced water formula (Gittell et al., 2012).

Moreover, because it does not require the same amount of energy to clean clothes, it does not require the same amount of detergent either — proving to be resource efficient.

The product is dispensed through a pump, is a lot smaller, and weighs less. This demonstrates the diversity aspect of cradle-to-cradle, because the product used design as a way to reduce excessive and wasteful amounts of detergent that we as consumers have mindlessly done, and by reducing we are benefiting the environment (Gittell et al., 2012,).

Looking Beyond Traditional Business Models

The cradle-to-cradle approach aims to push beyond traditional business models that lean on eco- efficiency policies and towards eco-effective strategies. Typically eco-efficiency relies on the three Rs: reduce, reuse, recycle, and operate on zero waste strategies (Brennan et al., 2015).

With this mindset there are some problems that can arise, as this is still adhering to a linear business model. For instance, with recycling, the product loses its value, and hence its life cycle is significantly shortened. We need to do better than that as businesses and go from downcycling, to upcycling, from eco-efficient, to eco-effective.

Method in my view is a cradle-to-cradle success story and I think it is a role model for companies to take that plunge. Since its conception, as a small two person company, Method has grown to be a US$100 million dollar company (Gittell et al., 2012).

Management has never broken the commitment to true sustainability, and has proved that having a cradle-to-cradle business strategy can result in positive environmental impacts & commercial growth. From breaking conventional trends in the industry, to pushing their giant competitors to adopt the three times cycled detergent, i see Method as a force to be reckoned with.


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Lama Alaraj is a graduate of Dalhousie University (Nova Scotia, Canada) with double major in economics and international development studies. She is a marketing consultant for Web.com. She was an analyst-intern with G&A Institute and was a key member of the team producing the S&P 500 Index annual research on sustainability reporting, and was very much involved in the G&A Institute’s GRI Data Partner duties.



Link: https://www.ga-institute.com/about-the-institute/the-honor-roll/lama-alaraj.html

Bibliography

Ankrah, N. A., Manu, E., & Booth, C. (2015, December). Cradle to Cradle Implementation in Business Sites and the Perspectives of Tenant Stakeholders. Elsevier, 83(Energy Procedia), 31-40. https://www.sciencedirect.com/science/article/pii/S1876610215028581#abs0005

Brennan, G., Tennant, M. and Blomsma, F. (2015). Chapter 10. Business and
production solutions: Closing Loops & the Circular Economy, in Kopnina, H. and Shoreman-Ouimet, E. (Eds). Sustainability: Key Issues. Routledge: EarthScan, pp.219-239

Chow, L. (2015, July 29). Gotham Greens + Method = World’s Largest Rooftop Greenhouse Coming to Chicago. EcoWatch. Cradle to cradle products innovation institute. (2020). Impact Study Executive Summary. www.c2ccertified.org. https://www.c2ccertified.org/impact-study

Gittell, R., Magnusson, M., & Merenda, M. (2012). The Sustainable Business Case Book (Vol. Chapter 6). Saylor Foundation. https://2012books.lardbucket.org/books/sustainable-business-cases/index.html

Grotewohl, E. (2018). Chapter 830: Cleaning Products Are Coming Clean. University of Pacific Law Review, 49(2). Scholarly Commons. https://scholarlycommons.pacific.edu/cgi/viewcontent.cgi?article=1161&context=uoplawreview

Ryan, E., Lowry, A., & Conley, L. (2011). The Method Method: Seven Obsessions That Helped Our Scrappy Start-up Turn an Industry Upside Down. Penguin.

Severis, R., & Rech, J. (2019). Cradle to Cradle: An Eco-effective Model. In Earth and Environmental Science Reference Module Physical and Materials Science. Springer, Cham. https://link.springer.com/referenceworkentry/10.1007/978-3-319-71062-4_62-1

Advancing Toward a Circular New York

By Kirstie Dabbs – Analyst-Intern, G&A Institute

New York City’s latest OneNYC 2050 strategy outlines an ambitious sustainability agenda that includes goals to achieve zero waste to landfill by 2030, and carbon neutrality by 2050.

New Yorkers who track city- and state-wide environmental goals and regulations are likely aware of the importance of renewable energy and energy efficiency in achieving this climate strategy, but those actions alone won’t fulfill New York’s ambitions.

A circular economy must also be adopted in order to further reduce greenhouse gas emissions and waste, while also conserving resources. Although the OneNYC strategy does make note of this shift, many New Yorkers remain unfamiliar with even the concept of the circular economy, let alone its principles, practices and potential impact.

What is the Circular Economy?

Also known as circularity, the circular economy calls for a reshaping of our systems of production and consumption, and an inherently different relationship with our resources.

Rather than following our current “linear” economic model that extracts resources to make products that are used and disposed of before the end of their useful life, a circular economy follows three core principles to extend the value of existing resources and reduce the need to extract new resources:

  • Design out waste.
  • Keep products and materials in use.
  • Regenerate natural systems.

These three principles — as put forth by the Ellen MacArthur Foundation — create opportunities to reduce and potentially eliminate waste,  from the design phase all the way to a product’s end of life.

Materials Matter

In the design phase, the choice of materials plays a critical role in either facilitating or preventing recirculation of materials down the line. By choosing to manufacture products with recycled materials, companies will drive demand for more post-consumer feedstock, further reducing waste to landfill which is aligned with the City’s waste-reduction goal.

Companies can also choose to manufacture products using responsibly sourced bio-based materials, which enable circularity because they biodegrade at the end of life with the appropriate infrastructure in place.

WinCup and Eco-Products are examples of companies leading the way toward biodegradable paper and plastic cup alternatives. The regenerative process of biodegradation is in line with the third principle of circularity and supports New York City’s waste goals in bypassing the landfill altogether and heading directly to the compost pile.

Durable Design Increases Product Lifespan and Reduces Consumer Demand

In addition to applying material design principles to divert material from landfill, companies can deploy design and marketing strategies to keep their products in use longer.

Designing durable products and those that can be easily repaired not only leads to longer product lives, but also reduces waste and demand for new products. Creating products that will be loved or liked longer – such as “slow” fashion that won’t go out of style – is another tactic to extend the emotional use of a product.

Finally, companies such as Loop that combine durability with reuse offer a solution to the packaging waste dilemma by keeping long-lasting packaging in circulation.

According to a 2019 report from the European Climate Foundation, by recirculating existing products and materials, the demand for new materials will decrease, reducing environmental degradation and product-related carbon emissions.

How Will the Circular Economy Help Reduce Greenhouse Gas Emissions?

The same report also notes that in order to meet the carbon reduction targets outlined by the Intergovernmental Panel on Climate Change, we “cannot focus only on…renewables and energy efficiency” but must also ”address how we manufacture and use products, which comprises the remaining half of GHG emissions.”

A recent press release from the World Economic Forum (WEF) summarized it succinctly: If we don’t link the circular economy to climate change, “we’re not just neglecting half of the problem, we’re also neglecting half of the solution.”

New York’s Steps to Advance the Circular Economy

Although the principles of circularity can be applied to an individual’s or organization’s behavior, to fully achieve a circular economy the economic system as a whole must fully adopt these principles.

According to a recent report by Closed Loop Partners — an investment company dedicated to financing innovations required for a circular economy — the four key drivers currently advancing circularity in North America are investment, innovation, policy and partnership. All are important and increasing; we are seeing the private and public sectors collaborating to take advantage of the economic opportunity offered by circularity while executing this environmental imperative.

The New New York Circular City Initiative

Closed Loop Partners, along with several other private and public organizations, have come together to found the New York Circular City Initiative, officially launching this month.

One of several partners participating in the initiative is the NYC Economic Development Corporation (NYCEDC), and Chief Strategy Officer Ana Arino spoke last year of how the NYCEDC is well-positioned to inspire and implement city-wide changes leading to a circular economy through levers such as real estate assets; programs to support circular innovation; its intersectional position between the private and public sectors; and public-facing awareness campaigns.

The vision of the New York Circular City Initiative is “to help create a city where no waste is sent to landfill, environmental pollution is minimized, and thousands of good jobs are created through the intelligent use of products and raw materials.” Through engagement in this collaborative effort, the City is taking an important step toward circularity, that, if scaled, has the potential to make significant and lasting changes in the local economy—and beyond.

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Kirstie Dabbs is pursuing her M.B.A. in Sustainability with focus on Circular Value Chain Management at Bard College.  She is currently an analyst-intern at G&A Institute working on GRI Data Partner assignments and G&A research projects. In her role as an Associate Consultant for Red Queen Group in NYC she provides organization analyses and support for not-for-profits undergoing strategic or management transitions.

 

Profile:  https://www.ga-institute.com/about-the-institute/the-honor-roll/kirstie-dabbs.html

 

This article was originally published on the GreenHomeNYC blog on September 28, 2020.

 

The United Nations at 75 Years This Week – Corporate CEOs Around the Globe Pledge Support of the Missions

October 20, 2020

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

Three-quarters of a century of serving humanity — the family of nations celebrates the 75th Anniversary of the founding of the United Nations on October 24th.

After the global conflict of World War Two, with great losses of life, liberty and property, 51 nations of world gathered in San Francisco to put the Charter into force — to collectively explore a better way forward with collaboration not confrontation.  (The Charter was signed as the war was ending in the Pacific and had ended in May in Europe).  We can say that on October 24, 1945, the United Nations “officially” came into existence with the ratification of the Charter by nations and the gathering of delegates.

The United Nations members states — the global family of sovereign nations collaborating peacefully for seven-plus decades to address common challenges — got good news in its 75th anniversary year.

More than one thousand business leaders from 100+ nations endorsed a Statement of Renewed Global Cooperation, pledging to further unite in helping to help to make this a better world…for the many, not the few. Some of the world’s best known brand marketers placed their signatories on the document.

UN Secretary General Antonio Guterres received the CEOs’ messages of support at a Private Sector Forum during the recent General Assembly in New York (September).

The Statement from Business Leaders for Renewed Global Cooperation was created as the nations of the world are coping with the impacts of the Coronavirus, domestic and global economic slowdown, rising political and civic unrest, wars in different regions, critical climate change challenges, the rising demand for equality of opportunity, and more.

The corporate CEOs’ public commitments included demonstration of ethical leadership and good governance (the “G” in ESG!) through values-based strategies, policies, operations and relationships when engaging with all stakeholders.

Now is the opportunity, the statement reads, to realign behind the mission of the UN to steer the world onto a more equitable, inclusive and sustainable path. We are in this together – and we are united in the business of a better world.

“Who” is the “We”? Leaders of prominent brands signing on include Accenture, AstraZeneca, BASF, CEMEX, The Clorox Company, Johnson & Johnson, Moody’s, Nestle, Thomson Reuters, S&P Global, Salesforce, Tesla, and many other consumer and B-to-B marketers. (The complete list of large-cap and medium and small companies accompanies the Statement at the link.)

There are many parts of the global community’s “meeting place” (the UN) that touch on the issues and topics that are relevant to us, the folks focused on sustainability. Think of the work of:

UN Global Compact (UNGC)
This is a non-binding pact (a framework) to encourage enterprises to voluntarily adopt sustainable and socially responsible policies and report on same; 12,000+ entities in 160 countries have signed on to date (the Compact was created in July 2000).

UN Principles for Responsible Investing (PRI)
Founded 2006, this is a global network of financial institutions and others in the capital markets pledging to invest sustainably, using 6 principles and reporting annually; today, there are 7,000+ signatories to date in 135 countries; this is in partnership with UNGC and the UNEP Finance Initiative.

UN Sustainable Development Goals (SDGs)
The SDGs (17 goals with 169 targets) build on the earlier Millennium Development Goals MDGs- (2000-2015).

The Paris Agreement builds on the UN Framework Convention on Climate Change.

The UN Environment Programme (UNEP) plays important roles in protecting the world’s environment.

In all, there are almost three dozen affiliated organizations working to advance humanity through the United Nations System.

 

SHARED PERSPECTIVES: FAYE LEONE
With all of this activity, the UN needs support, and shared ideas, to build even stronger foundations. Our colleague, G&A Institute Senior Sustainability Content Writer Faye Leone, has a decade of experience reporting on the UN.

Her perspectives: “It is exactly right for business leaders to express support for global cooperation– not competition- at this time. This is in the spirit of the UN’s 75th anniversary and critical for the next big challenge for multilateralism and solidarity: to fairly provide a safe vaccine for COVID-19.”

She explains that leading up to its 75th anniversary in September 2020, the UN conducted a year-long ‘listening campaign”. The results, after over one million people around the world participated!

They said they do not want “more of the same” from the UN.  They overwhelmingly called for a more inclusive, diverse, and transparent UN that does a better job of incorporating businesses, cities, vulnerable peoples, women, and young people. They also said the UN should be more innovative.

(View Source)

The Sustainable Development Goals, says Faye, can help with that.  The 17 goals “provide a common language for everyone to combine their strengths. According to the head of B Lab, business’ role is to participate in delivering on the SDGs, use the power of business to solve the world’s most urgent problems, and inspire others to do the same”.

(View Source)

Read more about the UN’s 75th anniversary through Faye’s work with IISD here.

Read more about the UN’s 75th anniversary here.

Mark October 24 on your calendar. That’s the day we commemorate the UN’s official founding after WW II (on 24 October 1945). We invite you to think about how you can support the UN moving toward the century-of-service mark in 25 years (2025) – and what ideas you can share to help this organization of the family of nations to address 21st Century challenges!

TOP STORY

Celebrating Highlights Issue #500 – And Unveiling a New Design

October 16, 2020

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

Celebrating Highlights issue #500 – this is a landmark achievement, we will say, for this is also the tenth anniversary year of publishing the G&A Institute’s weekly newsletter (G&A Institute’s Sustainability Highlights).  As you will see in reading #500, we are also introducing an enhanced format intended to make the newsletter easier to read or scan as well.

Our G&A Institute’s Sustainability Highlights newsletter is designed to share timely, informative content in topic/issue “buckets” that we think will be of value to you, our reader. So much is happening in the sustainable investing and corporate sustainability spaces these days – and we are working hard to help you keep up to date with the important stuff!

Publishing the Sustainability Highlights newsletter is a team effort here at G&A.

Our company was formed in late 2006 and among our first efforts, Ken Cynar, then and now our Editor-in-Chief, began the daily editing of the then-new “Accountability Central” web site with shared news and opinion. The focus was (and is) on corporate governance, environmental matters, a widening range of societal and corporate-society issues, SRI investing, and more.

Two years later we created the “SustainabilityHQ” web platform – Ken manages content for both platforms today.

Back in those early days there was not the volume of ESG news or opinion pieces that we see today. Whenever we “caught” something of note the rest of the G&A team would quickly share the item with Ken.

Our team had worked together (some for a number of years) at the former Rowan & Blewitt consultancy, specialists in issue management, crisis management and strategic communications for the fortunate Fortune 500s.

That firm was acquired by Interpublic Group of Companies and after 7 years the New York City team created G&A Institute to focus on corporate sustainability, responsibility, citizenship and sustainable & responsible investing.  All of us came equipped with a strong foundation of issue management, risk management, critical issues managements, and corporate communications experience and know-how.

“ESG” had just emerged as a key topic area about the time we began our publishing efforts and soon we saw a steady flow of news, features, research reports, opinions & perspectives that we started sharing.

We had worked on many corporate engagements involving corporate governance, environmental management, a range of societal issues, public policy, and investor activism.  Here it was all coming together and so the G&A enterprise launch to serve corporate clients!

By 2010, as we emerged from the 2007-2008 financial markets debacle, then-still-small-but-solid (and rapidly expanding) areas of focus were becoming more structured for our own information needs and for our intelligence sharing, part of the basic mission of G&A from the start. And so, we created the weekly Highlights newsletter for ease of sharing news, research results, opinion & perspectives, and more.

It is interesting to recall that in the early issues there were scant numbers of corporate CSR or sustainability etc. reports that had been recently published (and so we were able to share the corporate names, brief descriptions of report contents, links of those few reports).  That trickle soon became a flood of reports.

But looking back, it was interesting to see that at the start of the newsletter and our web sites, there were so few corporate sustainability / responsibility reports being published we could actually post them as news for readers. Soon that trickle of corporate reports became a flood.

A few years in, The Global Reporting Initiative (GRI) invited G&A to be the data partner for the United States and so our growing team of ESG analysts began to help identify and analyze the rapidly-increasing flow of corporate reports to be processed into the GRI’s global reporting database.

Hank Boerner and Lou Coppola in the early days worked closely with Ken on the capturing and editing of content.  Lou designed the back end infrastructure for formatting and distribution.

Amy Gallagher managed the weekly flow of the newsletter, from drafts, to layout and then final distribution along with the coordination of a growing body of conference promotions with select partner organizations.

And now with a solid stream of content being captured today, all of this is a considerable effort here at G&A Institute.

Ken is at the helm of the editorial ship, managing the “AC” and “SHQ” web platforms where literally thousands of news and opinion are still hosted for easy access. He frames the weekly newsletter.

Today Ken’s effort is supported by our ESG analysts Reilly Sakai and Julia Nehring and senior ESG analyst Elizabeth Peterson — who help to capture original research and other content for the newsletter.

Hank and Lou are overall editors and authors and Amy still manages the weekly flow of activities from draft to distribution.  Our head of design, Lucas Alvarez, working with Amy created this new format. As you see, it is a team effort!

There is a welcome “flood” — no, a tidal wave! — of available news, research and opinion being published around the world that focuses on key topic areas: corporate sustainability, CSR, corporate citizenship, ESG disclosure & reporting, sustainable investing, and more.  We capture the most important to share in the newsletter and on our web sites.

We really are only capturing a very tiny amount of this now-considerable flow of content, of course, and present but a few select items in the categories below for your benefit.  (The target is the three most important stories or items in each category.)

Much more of the ongoing “capture effort” is always available to you immediately on the SustainabilityHQ web platform (see the “more stories” links next to each category of headlines).

We hope that you find Sustainability Highlights newsletter of value. It’s a labor of love for us at G&A, and we would like to get your thoughts and feedback …including how we can continue to improve it. Thanks for tuning in all of these years to our long-term readers!

TOP STORIES

As example of the timely news of interest for this week we offer these (two) commentaries on the Sustainability Development Goals (SDGs).  We are five years in/with 10 years in which to make real progress…where do you think we are headed?

As students and faculty head back to campus – there’s discussion about “sustainability” and “campus”: