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…

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.

This Week’s Top Stories

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…

Economic Growth, Protecting & Preserving Our Ecological Systems – Are These Conflicted, Or Complementary As We Strive For Greater Global Sustainability?

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

The continued drive toward greater societal sustainability is very encouraging.  The public sector, multilateral organizations, companies, investors, NGOs, and other stakeholders are adopting new strategies and embracing new approaches and best practices.  Picture the installation of the vast array of a desert solar generating “farm” – that’s progress to cheer.

But there are substantial societal challenges that will require much more effort than we see today if we are to achieve greater, widespread sustainability — worldwide.

Growth is good/growth is an issue.  We are on track, demographers tell us, to see the global population grow from today’s 7.6 billion to 9.6 billion by the year 2050.  We recall a description that describes the challenge of meeting this particular situation: It is like changing tires on an automobile that is moving.

The imagery of that is tantalizing to consider.  This could apply to the challenges of developing solutions to vexing social, environmental and governance issues of 2018 as we steadily move towards 2050.

The United Nations Sustainable Development Goals (the SDGs) comprise an excellent roadmap for us to (1) look at the vexing societal issues and (2) collaborate and innovate to develop solutions, even as economic, population, demographic, political, financial, and other issues throw up still more challenges to meet as we strive to meet today’s challenges.

Reality:  We have to continue “growing”, right?

The 17 SDGs include such laudable and aspirational goals as ending poverty (#1), proving education (#4), providing clean water and sanitation (#6), and achieving “zero” hunger (#2).

Governments, industry, investors, civic leadership, NGOs, and other stakeholders are busily trying to figure out the “how” of addressing the challenges.  (And, how to pay for the work to be done.)  This week the UN Secretary General spoke about the lack of progress in general since the goals were structured in 2015.  Only 12 years are left until the 2030 deadline for having solutions in place, observers noted.

So the question:  Can sustainable development logically co-exist with current economic growth?  The Phys.Org organization provides an interesting (brief) exploration of the topic in a feature article in September. There’s an elephant in the room, say the authors, and that is the “trilemma of population growth, economic growth, and environmental sustainability” – which (they say) reveals the vast incompatibility of current models of economic development with environmental sustainability.

These are some of the findings of a study published in the Proceedings of the National Academic of Sciences (USA); the lead author is Professor Graeme Cumming of the ARC Centre of Excellence for Coral Reef Studies at James Cook University.

An example of the research results:  High-income countries often rely more on non-extractive industries, such as manufacturing and services, but consume more per capital and import more raw materials.

In low-income countries, populations depend more on the extractive industries (agriculture, mining, logging), but have lower per capita consumption rates and higher population growth (and will have more mouths to feed).

The world is divided into two distinct groups of national economies, the authors posit in the Proceedings, roughly equated to developed and less developed nations…and both are pushed toward two different equilibrium points that are unsustainable under population growth. (They studied data and models that are described in the Journal report.)

The solution that we can all agree on:  We need to find ways to make economic development and good standards of living compatible with ecological sustainability.  We can use this knowledge to steer economic growth towards win-win outcomes for people and the environment (so say the authors).

The Journal article is available to you at:
Linking Economic Growth Pathways and Environmental Sustainability by Understanding Development as Alternate Social-Ecological Regimes http://www.pnas.org/content/early/2018/09/04/1807026115

Our Top Story provides highlights of the report authored by Professor Cumming and his colleague, Stephan von Cramon-Taubadel); Dr. Cumming presents brief highlights for you.

This Week’s Top Story

Can sustainable development co-exist with current economic growth?
(Thursday – September 06, 2018) Source: Phys.org – New research confronts the elephant in the room—the ‘trilemma’ of population growth, economic growth and environmental sustainability—and reveals the vast incompatibility of current models of economic development with…

Global Warming / Climate Change — What Are Current Weather Events and Dramatic Changes Telling Us?

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

The National Geographic describes “Global Warming” as a set of changes to the Earth’s climate, or long-term weather patterns, varying from place-to-place.  The dramatic changes in the rhythms of climate could affect the face of our planet – coasts, forests, farms, mountains…all hang in the balance.

So, also hanging in the balance:  the fate of humanity!

Explains NatGeo:  “Glaciers are melting, sea levels are rising, cloud forests are dying, and wildlife scrambles to keep pace.  It’s becoming clear that humans have caused most of the past century’s warming by releasing heat-trapping gases as we power our modern lives.  Greenhouse gases (GhGs) are at higher levels now than in the last 650,000 years.” *

“Climate Change” is the less politically-volatile term used by leaders in the public and private sectors (such as in the numerous shareholder-presented proxy resolutions that are on the ballots of public companies for owner voting and in the language of corporate sustainability reporting).

Carbon Dioxide emissions (CO2) released into the atmosphere have increased by a third since the start of the Industrial Revolution, and so addressing this challenge would logically be a prime responsibility of those who benefited most from the 200-year-plus revolution – pretty much all of us!

The political climate in most of the developed industrial world is mostly reflective of the will to do “something” – witness the almost 200 sovereign nations signing on to the Paris Agreement in 2015 (“COP 21”) to work together and separately to holding the temperature rise to well below 2-degrees Centigrade (3.5F), the pre-industrial levels — and pursuing efforts to limit the temperature rise to 1.5-degrees C above pre-industrial levels. (“As soon as possible.”)

The Agreement also calls for the increasing society’s ability to adapt to the adverse impacts of climate change and foster climate resilience including low GHG emissions development. **

The outlier nation to the agreement, sad to say, is the world’s largest economy and significant GHG emitter, the United States of America, which has begun the withdrawal process from the Paris Agreement.

This week we present a selection of top stories about climate change – and global warming! – to illustrate the effects of a changed climate around the globe.  And to send signals to the doubting policymakers in Washington DC that the threat is real!

The good news is that many corporate managements, powerful institutional investors, and public policy makers in a growing number of leaders in U.S. cities, states and regions are committed to the goals of the Paris Agreement and working to implement steps to hold the line – to build resilience – that will benefit all of society.

We really do have to hurry — take a look at what is happening around our planet:

This Week’s Top Stories:
Drought, Heat Wave, Wild Fires
— Is the Earth Burning Up?

Earth at risk of becoming ‘hothouse’ if tipping point reached, report warns
(Tuesday – August 07, 2018) Source: CNN – Scientists are warning that a domino effect will kick if global temperatures rise more than 2°C above pre-industrial levels, leading to “hothouse” conditions and higher sea levels, making some areas on Earth uninhabitable.

5-year drought raises questions over Israel’s water strategy
(Monday – August 06, 2018) Source: ABC News – For years, public service announcements warned Israelis to save water: Take shorter showers. Plant resilient gardens. Conserve. Then Israel invested heavily in desalination technology and professed to have solved the problem by…

Our climate plans are in pieces as killer summer shreds records
(Monday – August 06, 2018) Source: CNN – Deadly fires have scorched swaths of the Northern Hemisphere this summer, from California to Arctic Sweden and down to Greece on the sunny Mediterranean. Drought in Europe has turned verdant land barren, while people in Japan and…

Are devastating wildfires a new normal? “It’s actually worse than that,” climate scientist says
(Wednesday – August 08, 2018) Source: CBS News – California Gov. Jerry Brown has called the devastating wildfires tearing through Northern California “part of a trend — a new normal.” But one climate scientists says “it’s actually worse than that.”

Europe battles wildfires amid massive heat wave
(Wednesday – August 08, 2018) Source: ABC News – Record-breaking temperatures across Europe have forced people to sleep in a Finnish supermarket, uncovered a piece of World War II history in Ireland and are making it harder to battle the wildfires that have been raging in Spain…

Don’t despair – climate change catastrophe can still be averted
(Wednesday – August 08, 2018) Source: The Guardian – The future looks fiery and dangerous, according to new reports. But political will and grassroots engagement can change this…

Australia’s most populous state now entirely in drought
(Thursday – August 09, 2018) Source: CBS – CANBERRA, Australia — Australia’s most populous state was declared entirely in drought on Wednesday and struggling farmers were given new authority to shoot kangaroos that compete with livestock for sparse pasture during the…

Nearly 140 people dead amid Japan heat wave
(Thursday – August 09, 2018) Source: WTNH – Japan is dealing with a heat wave that had killed 138 people. The heat wave started back in May and has been roasting the country ever since…

Europe bakes again in near-record temperatures
(Thursday – August 09, 2018) Source: Phys.org – Europe baked in near-record temperatures on Monday but hopes were for some respite after weeks of non-stop sunshine as people come to terms with what may prove to be the new normal in climate change Europe…

* Greenhouse Gases are defined as a gas trapping heat in the atmosphere, contributing to the “greenhouse effect” by absorbing radiation:  carbon dioxide/CO2, methane, nitrous oxide, and flouorinated gases (such as chlorofluorocarbons, sulfur hexafluoride).

** The Paris Agreement is at: https://unfccc.int/sites/default/files/english_paris_agreement.pdf

Eco-Efficiency Green Firm-Specific Advantages — L’Oréal Case Study

Guest Post by Laura Malo Yague, Sustainability Reports Data Analyst, G&A Institute

Introduction:

The scope of this case study is the analysis of the sustainability strategy of the French company L’Oréal, focused on the actions taken related to the Eco-Efficiency Green Firm – Specific Advantages.

Eco-Efficiency is a type of operational environmental practices that some companies try to develop and incorporate to their production processes and procedures, in order to mitigate their impact for the planet, the climate, natural resources and human life.

Through these practices, the companies aim to get a closed-loop production, by using innovation and sustainable technology for minimizing the resources and raw material consumption and reducing the carbon footprint.

Companies and firms can improve their products’ design and performance by introducing eco-efficiency advantages in their strategy. One perfect example is the current case of L’Oréal with the official release in 2013 of their Program for sustainability of L’Oréal: ‘Sharing Beauty With All .

Product-related environmental management capabilities and environmental design capabilities under eco-efficiency advantages help firms to integrate environmental concern throughout a product’s life cycle and achieve material eco-efficiency, energy efficiency, and operational efficiency . Following these guidelines, L’Oréal presented its program supported in four basic main pillars:
• Innovating Sustainability
• Producing Sustainability
• Living Sustainability
• Developing sustainability

About L’Oréal and the Eco-efficiency Green Firm-Specific-Advantage: ‘Sharing Beauty With All’

L’Oréal released its first sustainability report in 2006 after acquiring The Body Shop company. The company reports under the GRI Standards and also complies with UNGC guidelines.

It wasn’t until 2013 with the founding of its ambitious sustainability program, ‘Sharing Beauty With All’ — spearheaded by CEO Jean-Paul Argon — that sustainability practices within the company became an important part of the yearly agenda. “We have stepped up our metamorphosis to the new L’Oréal: more universal, more digital and more sustainable,” states Argon.

‘Sharing Beauty With All’ is divided into four pillars of sustainability each with its own particular targets aimed to be achieved by 2020.

L’Oréal has undertaken a profound transformation towards an increasingly sustainable model, to respond to its environmental and social impacts, as well as to the main challenges which the world is facing today.

The company’s strong ethical commitment, its ‘Sharing Beauty With All’ sustainability program, its policy of promoting diversity and the corporate philanthropy actions conducted with the support of the L’Oréal Foundation enables the Group to contribute to 14 of the 17 Sustainable Development Goals (SDGs) set by the United Nations.

L’Oréal has also been awarded a ‘A’ by the CDP two years in a row and rated 4.2 in FTSE .

Through its company-wide program L’Oréal has successfully proven that economic performance and sustainability practices are not mutually exclusive. The program aims to show that both practices can go hand in hand.

For example, in 2017, L’Oréal reduced its CO2 emissions by 73% while increasing its production by 33%.

The CEO has placed the Sustainability Department directly under his leadership. Previously, the department was within the communications and PR department. Argon has also set up bonus incentives for the managers. Thus, the managers must hit their sustainability targets in order to receive their bonuses. These two facts clearly show how serious Argon and L’Oréal are about becoming more sustainable.

L’Oréal Sustainability Evolution and Development

In 1909, Eugène Schueller founded L’Oréal when he developed the first commercialized hair dye. Although L’Oréal got its start in hair-color products, the company expanded into other beauty sectors. In 1963 the company became publicly-traded on the stock exchange and by 1980 L’Oréal had become world’s largest beauty company.

Through multiple acquisitions, the company has grown to reach 140 countries, catering to the needs of each specific culture. As one of the leaders in Personal & Household Goods products, the group is making tremendous progress towards reaching their 2020 sustainability targets .

The first step in the Corporate Social Responsibility path was taken in 1989. Cosmetics R&D industry implies the use of new chemical reactions and components which can be harmful for human skin. After years of controversial due to their research practices, L’Oréal completely ceased testing its products on animals 14 years before the regulation required, becoming pioneers supporting animal welfare.

L’Oréal has learned how to adapt to the new context with a strong company policy tackling crucial issues for the current society, by promoting diversity and inclusion. Also, to the new scenario that our planet presents, with the increasing danger of a worsen global warming, the already-known marine plastic invasion, the unstoppable fossil fuel combustion and the fear of a world with limited natural resources.

With its 2013 Sustainability Commitment, L’Oréal wants to achieve important goals by 2020. Among other actions completed, the company has contributed to the mitigation of the environmental impact with the implementation of different Eco-Efficiency Operational Green Firm-Specific Advantages .

For example, by reducing the CO2 emissions of its plants and distribution centers by 73%, in absolute terms, compared to 2005, while increasing its production volume by 33% within the same period. The group reinforced its ability to combine economic growth with ambitious climate commitments.

Moreover, the 76% of products launched during the last 2017 improved its environmental or social profile. Every time a new product is created or renovated, the Group considers its contribution to sustainability as well as its performance and profitability.

The number of people from underprivileged communities who gained access to employment through one of L’Oréal’s programmes at the end of 2017 was 53,505. The company’s goal is to reach 100,000 people by 2020.

Furthermore, the company has already conducted an assessment of the environmental and social impact of more than 91% of their brands.

Finally, other important challenge was the complete elimination of PVC its packaging by 2016.

We can see the L’Oréal trends by the development of Eco-efficiency Green FSAs and practices under two main pillars from the company sustainability strategy: ‘Producing Sustainability’ and ‘Innovating Sustainability’.

As explained, L’Oréal adopted 14 of the 17 Sustainable Development goals — most of them aligned with these two pillars (see exhibit 1); this, reinforcing the Company’s Eco-efficiency strategy focused on the development of more sustainable products by using more sustainable processes.

Some of the negative ESG (Environmental, Social and Governance) hotspots from L’Oréal that they should take in account for improvement are the product packaging, which they state they are already working on, and the issue ofwater consumption.

Most of L’Oréal products contains many different single-use plastic and paper components, with the implications for the environment, from the extraction of natural resources all the way through to the disposal of the product.

Extracting finite natural resources to produce raw material depletes our resources and requires a significant amount of energy.

In addition, plastic and paper manufacturing process releases an immense amount GHG into the atmosphere.

Regarding the water issue, many of their products also involves water intensive processes along its entire life cycle. Therefore, L’Oréal is trying to reduce water consumption by 60% per finished product unit by 2020. Plastic extraction and cellulose treatment for the paper manufacturing, imply water uptake.
Conclusion

Nowadays, L’Oréal is the biggest beauty brand in the world, generating about 27.2 billion dollars in sales in 2017.

The adoption of this sustainability corporate policy by the company could initially imply big efforts for the group, such as, substantial upfront costs or important changes in the supply chain.

However, due to the important role that L’Oréal plays in the cosmetics industry market, the company can also have a positive and remarkable impact by mitigating CO2 emissions, decreasing fossil fuel use or reducing plastic use and pollution.
Any changes towards sustainability or eco-improvements will directly affect the L’Oréal ecological footprint, bringing great benefits for the environment and for all of us. L’Oréal states that

‘The path from fundamental research to the finished product involves an ultimate challenge, packaging innovation. This is what ensures that the product will be delivered in the best conditions of performance, safety and practicality’.

#  #  #

Author Laura Malo Yague is a full-time candidate in the Master of Science in Sustainability Management at Columbia University. She was graduated with a degree in Industrial Technical Engineering – Industrial Electronics in Spain and has seven years experience in Product and Project Management. She was a valued intern-analyst at G&A Institute in 2017.

From Laura, some additional background: From Spain to New York City — with a professional background of seven years working as an engineer and a great lover of the environment, I arrived in 2016 seeking for a change in my career path. During the last two years I have been training myself in Project Management, focused in monitoring and evaluation, Corporate Responsibility and Sustainability at New York University (NYU).

I collaborated as a volunteer in the NGO ‘Engineering Without Borders’ for eight years participating in sustainability and development projects focused on environmental problems, eco-efficiency climate change and taking responsibility of our planet’s health, trying to do things better.

I love travelling with my ukulele, where I can combine my passions discover new cultures, meet people and enjoy the diversity of our planet. I would like to work in sustainability strategy to improve the accountability of market and industry process and development.

More information is at: https://www.ga-institute.com/about-the-institute/the-honor-roll/laura-malo-yague.html

Note to readers:  This content was prepared for completion of the Certification in Corporate Responsibility & Sustainability Strategies offered by G&A Institute, with dual credentials from the Swain Center for Executive & Professional Education at the University of North Carolina Wilmington Certificate. The course work is prepared by Professor Nitish Singh, Ph.D., founder and consultant at IntegTree LLC, and Associate Professor of International Business at St. Louis University, Boeing Institute of International Business. Information: http://learning.ga-institute.com/courses/course-v1:GovernanceandAccountabilityInstitute+CCRSS+2016/about

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

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

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

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

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

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

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

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

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

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

Top Stories

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

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

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

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

Are We Making Progress? Considering Recent News About “Apparel Fashion and Sustainability” — and the Investor Initiative to Help Make East Asian Factory Workers Safer and Better Paid…

by Hank Boerner – Chair, G&A Institute

In monitoring the growing abundance of news stories and commentary about “supply chain,” “globalization” or “trade” topics and issues, our editors often see the focus is on apparel, clothing, textiles, fashionand related topics & issues.

Companies in the developed economies widely source apparel footwear and related items in the developing and under-developed nations – and what happens there can quickly make news that travels around the globe.

Example:  The focus five years ago about this time was on the East Asian nation of Bangladesh and the Rana Plaza vertical factory tragedy in the capital city of Dhaka (or Dacca) that killed more than 1,000 garment industry workers.  The labels of leading western nation marketers were scattered about the debris and ashes — and those familiar brand images as well as images of the collapsed building and details of the tragedy helped to focus attention on worker conditions in the East Asian region in both North America and Europe.

The Interfaith Center on Corporate Responsibility (ICCR) investor coalition is keeping the focus on worker safety as the “Bangladesh Accord on Fire and Safety” is renewed for another three years.

ICCR institutions and their investor allies organized as “The Bangladesh Investor Initiative” (with collective AUM of US$4.5 trillion) on the 5th anniversary are urging a stronger corporate response and demonstrated commitment to local worker safety and adequate wage levels.  The link to our blog commentary on recent developments and background information for companies and investors is below.

Some good news to share is that sustainability is catching on in the fashion industry.  The uber fashion magazine from publishers Conde Nast – Vogue, with more than one million readers — just published a story about the embrace of “eco-friendly” fashion, spotlighting “the best designers of a new generation are stitching sustainability into everything they do…”

“While sustainability has long been considered a “byword for hemp-heavy bohemia,” writer Olivia Singer explains, “a new generation of designers is building brands with a more conscious approach to fashion at their core.”

Fabrics are sourced through collectives in India empowering female weavers as just one example.  In the article designers explain why sustainability is important to their brands (Richard Malone, Le Kilt, Elliss, E.L.V. Denim, Alyx, Marine Serre, Richard Quinn are featured interviews).

A number of creative approaches being adopted by the designers is explained — just think about the contribution to global sustainability of turning recycled plastics and viscose into yarn and fringing, using organic cotton as well as recycled polyester for “new” fashions, creating ECONYL from fishnets to make swimwear, and using recycled cotton and plastics as part of the effort of making sustainability a “pillar of luxury”.

The encouraging details are in our Top Story this week – a cautionary note:  some of the fashion photos are edgy and might offend.

Top Stories

The Young Designers Pioneering A Sustainable Fashion Revolution
(Thursday – April 26, 2018) Source: Vogue – While eco-friendly fashion has never had particularly glamorous connotations, the best designers of a new generation are stitching sustainability into everything they do.

And of interest, our own related content on G&A’s Sustainability Update Blog:  The Bangladesh Garment Factory Workers Tragedy and Investor and Corporate Response Five Years On…

Dispatch From London and The Economist Sustainability Summit 2018

Guest Post By Juliet Russell – Sustainability Reporting Analyst, G&A Institute

The Economist’s third annual Sustainability Summit was convened in London on March 22nd, 2018. I attended as a representative of G&A Institute.

The discussions focused on how to shift from “responsibility to leadership”: how to lead and encourage co-operation on the path to progress.

I was impressed that significant players from a diverse range of sectors attended the conference, including representatives of Government, NGOs, Business and Academia. Panelists ranged from the CEO of Sainsbury’s, to Google’s Lead for Sustainability, to the Chair of the Board of Directors for Greenpeace and to a Deputy Mayor of London.

Each provided their own views and experiences of sustainability leadership and how to really see actions, instead of ‘just talk and promises’.

The key themes from the day centered around the need for collaboration, communication, shared responsibility, disruptive innovation, combatting short-termism and internalizing sustainability into core strategy and business models.

 

One of the most poignant messages for me was the need for understanding the urgency of the issues we are facing today, particularly in relation to climate change – “we are behaving as though the delta is zero and the delta is clearly not zero” (Jay Koh, The Lightsmith Group).

An attendee told a story of new LEED Platinum Certified buildings in Seattle that everyone is of course proud of — but in 30 years these super energy-efficient buildings will be underwater because we’re too busy focusing on small wins and continual growth, failing to act fast enough or understand the urgency when it comes to climate change and sea-level rise.

As quoted from Baroness Bryony Worthington of the Environmental Defense Fund – “…winning slowly with climate change is the same as losing!”

The conference was incredibly insightful, with such a breadth of timely and interesting topics, which highlighted different areas of debate and offered up potential solutions. Four of the panel discussions I feel are particularly worth highlighting:

1)    ‘A TALE OF THREE CITIES’
Discussion led by Mark Watts, Director of C40 Cities Climate Leadership Group
and featuring three city government representatives: Shirley Rodrigues, Deputy Mayor of London (Environment and Energy); Solly Tshepiso, Mayor of Tshwane, South Africa; and,  Karsten Biering Nielsen, Deputy Director of Technical and Environmental Administration for the City of Copenhagen.

The lack of adequate and strategic government action is failing so far in preventing climate change and also in reaching the United Nations Sustainable Development Goals (SGDs).

Mayor Solly discussed as example how slow progress on Paris Agreement targets were partly due to the lack of communication from top Government-level down to the city-level in South Africa. City-to-city communication and partnerships were touted as solutions to these kind of problems, as well as being vital in reaching the SDGs.

The C40 Cities Group facilitates this kind of partnership and network through the sharing of best-practice and successful innovation among their 92 affiliated cities around the world.

2)    ‘PIECES OF THE PUZZLE’
Discussion led by Christopher Davis, International Director of Corporate Responsibility and Campaigns from The Body Shop International.

This panel discussion focused around how to “do good and do well,”; Chris suggested that we need to be gearing business to be truly sustainable based on what the planet needs – not the economy or the shareholders – and creating benchmarks against planetary and societal needs.

Essential consideration for creating a sustainable business:  when sustainability is not an add-on function but embedded in the strategy and business model and thus integral to all activities. The Body Shop International management will know that they have been successful in their sustainability mission when sustainability is ingrained in everything the company is doing and they no longer have a need for a separate sustainability team.

3)    ‘CHANGING MINDS’
Discussion led Dr. Simone Schnall from the University of Cambridge and Prerana Issar from the UN World Food Programme.

This discussion revolved around the relevance of ‘nudging’ in changing behaviour (a behavioral economics approach) to push progress in sustainability. Dr. Simone discussed the concept of ‘nudging’ – creating a choice architecture, which is set up so that people are more inclined to go for the ‘beneficial’ option, gently pushing people to do the right thing.

An example of this might be in putting the recycled paper products at eye-level, with the products made from less sustainable materials at a more awkward height to see and reach.

Essentially, using nudging, we bypass the attempt at changing minds but still change the behaviour.

This can help to reduce problems such as ‘moral licensing’, where people feel licensed to do something ‘bad’ if they have just done something morally good (and vice versa). For example, when using energy efficient products, some people then feel they are able to use them more often because they are doing a ‘good’, which actually negates the positive efficiency benefit.

Nudging may be more and more necessary as actions towards sustainability become more urgent, as we can’t generally rely on society to make the best and informed decisions all the time. Though as nudging still relies on choice, is this enough to make us change? In reality, society may need more guidance and regulation and here, there’s a role for stricter governance and policy.

4)    ‘PIECES OF THE PUZZLE’
Discussion led by Marie-Claire Daveu, Chief Sustainability Officer for Kering.

Touching on the themes of innovation, partnerships and collaboration, Marie-Claire discussed a tool that Kering developed and are using: their Environmental Profit and Loss (“E P&L”).

Many people around the world and across sectors acknowledge that over-exploitation and degradation of the environment and our resources are partially due to the fact that these resources, our ‘natural capital’, have not been accounted for in economic decision-making and cost-benefit analyses.

Because of this, we are failing to internalize the negative externalities, which is crucial if we are to properly be accountable and responsible for our actions in society today, thus failing to understand the true environmental consequences of our actions.

Many businesses would fail to acknowledge the environment as a stakeholder unless it explicitly showed up on their profit and loss accounting.

Kering, a first-mover in their field, created and proposed an E P&L accounting tool as a way to do this and it can be applied throughout the entire value chain. This tool allows identification of impact areas and thus increases ability to reduce it.

Kering also provide their E P&L methodology open-source, to encourage other companies to follow and increase their accountability. This hones in on the knowledge-sharing and sharing of best-practice theme.

During the final session of the day, editors from The Economist newspaper came up with their main takeaways, the “four Ps”:

  • Pragmatic – that is, moving from debating who is responsible and asking, ‘is it really happening?’ to understanding that the situation “is what it is” — and we need to just get on with it. For this, collaborations at all levels will be key.
  • Persistent – sustainability needs to be talked about and implemented persistently, in order to become deeply embedded – not something that has the ‘fickleness of fashion’ – being ‘in’ the one day and passé the next. Persistence can help to bring a necessary sense of depth to the issues and challenges we are facing, in order to trigger action.
  • Problem – understanding reality and assessing our achievements: if we add up all of our efforts today, is it anywhere near enough? I’m sure you’ll all agree that the answer is most definitely not. How do we scale up these efforts effectively? We need to be mindful of the scale of the threats the planet and society face – increasing measurement and transparency can help to uncover this.
  • Prioritization – at present, we can’t robustly value different externalities, which is necessary for internalizing them and dealing in the most efficient and effective way. We must remember to be aware that each trade-off has consequences and consider alternative actions.

Coming away from this wonderful conference, it was clear to me that the main takeaway was of the potential of collaboration – within companies, within industries, between industries, and across sectors. This was picked up on in nearly every talk.

We need a whole ‘ecosystem’ featuring collaboration (involving business, NGOs, government, academia and citizens) in order to win with the current challenges we’re facing; to really progress in sustainability and work towards meeting the United Nations’ Sustainable Development Goals. The conference was undoubtedly a timely and powerful call for action.

Feeding 9 Billion People in 2050? Challenging!  – A Leading U.S. CEO in the Food & Agriculture Business Has Important Perspectives to Share

by Hank Boerner -Chair, G&A Institute

The CEO of one of the nation’s leading food and agriculture companies has important messages for us:  “To move the planet forward, farmers must lead the charge. But they cannot do it alone. Coordinated action on sustainability across the food supply chains is the only way to achieve lasting progress.”  He tells us how and why in his commentary in a Top Story in our Sustainability Highlights newsletter.

BackgroundThe Population Division of the Department of Economic and Social Affairs of the United Nations Secretariat in the 2017 revision of the World Population Prospects (the 25th version of this report) says: the current world population of 7.6 billion is expected to reach 8.6 billion in 2030, 9.8 billion in 2050 and 11.2 billion in 2100.

More than 80 million people are added to the world’s population each year. One of the 2030 Agenda for Sustainable Development Goals (the SDGs) is to end poverty and hunger – how do we achieve this will depend in large measure on the success of growers in the USA and many other lands.

Looking at global agriculture moving towards 2050, there are serious challenges posed; the UN’s Food and Agriculture Organization (FAO) in 2009 described some of these:  much more food and fiber must be produced; there will be a smaller rural labor force to help do this; there will be increased demand for more feedstocks for a potentially huge bioenergy market; adapting to climate is  necessary; and, ag producers must be more efficient and sustainable.

Demand for cereals, as example, could almost double from today’s production (for animal feed and human food). Almost all of the land expansion for ag could be in sub-Saharan Africa and Latin America.

The CEO of Land O’Lakes, Chris Policinski writing in Agri-Pulse explains that while the discussion about climate change and other challenges seems to be focused on developments being a generation away, American farmers are dealing right now with such things as harsh drought, severe weather and more pests…the challenges to the food supply are happening right now.

And it is time to start talking about sustainability differently…to include (for example) the reality of what farmers face, acre-by-acre/field-by-field. And then, “farm-to-fork” issues.

Bringing together big-picture, company-level sustainability commitments and acre-by-acre conservation efforts makes both more effective. The great example used by the CEO is Wal-Mart’s Project Gigaton, which aims to remove one billion metric tons of GhGs from the company’s supply chain by 2030.  (Land O’Lakes was one of the first supply partners to sign on.)

There’s much more for you in the Land O’Lakes CEO’s message in one of our Top Stories this week.  There are related items “up top” for you – this week we have ag and food in focus in the Highlights.

Note:  Land O’Lakes, Inc. is a member-owned cooperative agribusiness and food production company based in Minnesota, with $13.7 billion revenues in 2017. The cooperative is almost 100 years in operation and ranks #215 on the Fortune 500® roster.

Top Stories – Ag & Food In Focus

Opinion: To Move Our Planet Forward, Food and Agriculture Must Think about Sustainability Differently
(Friday – April 06, 2018) Source: Agri-Pulse – In many ways, the sustainability story of the American farmer mirrors that of every other American. Farmers genuinely care about doing their part to protect our planet, for all the same reasons as anyone else. They want to leave…

Smallholder farmers are key to making the palm oil industry sustainable
(Monday – April 02, 2018) Source: Eco-Business – Smallholder farmers play an increasingly prominent role in Indonesia’s growing palm oil industry and could be the vanguard of sustainability, say WRI researchers.

A few surprising industries affecting the concept of sustainability in a positive way
(Tuesday – April 03, 2018) Source: Augusta Free Press – In the last ten years, sustainability has become a very important element in the business processes in many industries. For instance, all-natural and organic have become trendy terms in the food industry. Companies which are part…

Opinion: To Move Our Planet Forward, Food and Agriculture Must Think about Sustainability Differently
(Friday – April 06, 2018) Source: Agri-Pulse – In many ways, the sustainability story of the American farmer mirrors that of every other American. Farmers genuinely care about doing their part to protect our planet, for all the same reasons as anyone else. They want to leave…

Don’t Believe In Global Warming? Just Ask A Tuscan Winemaker
(Wednesday – April 04, 2018) Source: Forbes – “Have you seen the effects of climate change and global warming in your region?”

Hershey is investing in more sustainable cocoa for its chocolate treats
(Wednesday – April 04, 2018) Source: LA Times