America’s Tech Giants Address Climate Change, Global Warming With Bold Initiatives in 2020

August 12 2020

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

It’s global warming, you say?  Well, we have to say that it certainly is a hot summer in many parts of the world (north of the Equator) and the U.S. National Hurricane Center has a large list of names for the storms to come.

That’s Arthur and Bertha on to Vicky and Wilfred – 21 named storms so far, with “Isaias” whipping through as tropical storm and causing hundreds of thousands of homes and business to lose power this past week in the NY region. And it was not even a full hurricane in the U.S. Northeast!

And during this week, many communities in the American Midwest lost electric power. Not be provincial here – in the Eastern North Pacific there are storms to come named Amanda and Boris on to Yoland and Zeke.

For the Central Pacific? – Akoni and Ema, and Ulana and Wale are possibly coming your way.  So, can we say this is an effect of global warming or not?  Let’s say…yes, with a number of contributing factors.

Like steadily-rising Greenhouse Gas Emissions trapping heat in the atmosphere.

Think of methane (CH4), carbon dioxide (CO2), nitrous oxide (N2O-or-NOX), ozone, and a host of chlorofluorocarbon gasses steadily drifting upwards into the atmosphere and over time, changing weather patterns to create more super storms. Think: tornadoes, floods, more torrential rain coming down (hello, Houston and New Orleans!)

In the U.S.A. major companies have been steadily addressing their carbon emissions and putting in place important programs to reduce emissions, such as by adding renewable energy sources, and taking small and larger steps to conserve electric power use, and more.

But if you are a company using a lot of power…and constantly adding power…there are ever more challenges to address.

That’s the case as the world continues to move online for many activities in business, education, healthcare, investing, shopping, and more.  And coming online — we are seeing more AI, robotics, approaches to develop self-driving vehicles, machine-to-machine learning, more and more communication…5G systems…all coming our way.  All needing more power generated.

Over the past few days some of the major U.S.-headquartered, powerhouse tech firms have been announcing their plans to address GHG emissions…and in the process the companies have or are putting significant strategies and initiatives in place to protect the planet and do their part of address climate change.

Eight companies launched the Transform to Net Zero coalition, to accelerate action toward a net zero carbon economy. (The firms are A.P. Moeller-Maersk, Danone, Mercedes-Benz, Microsoft, Natura & Co, Nike, Starbucks, Unilever, Wipro, along with the Environmental Defense Fund.)

The examples for you this week in our Top Story choices are familiar names in the U.S. corporate sector: Microsoft, Apple, Facebook, Alphabet/Google.  Read on!

Top Stories

Progress on our goal to be carbon negative by 2030
(Source: Microsoft)
By year 2030, MSFT intends to be carbon negative and by 2050, will remove from the environment more carbon than the company ever emitted since its founding.  The company launched a new environmental sustainability initiative in January 2020 focused on carbon, water, waste and biodiversity.

Microsoft commits to achieve ‘zero waste’ goals by 2030
(Source: Microsoft)
By the year 2030, Microsoft will divert at least 90% of the solid waste headed to landfills and incineration from its campuses and datacenters, manufacture 100% recyclable Surface devices, use 100% recyclable packaging, and achieve 75% diversion of construction and demolition waste for all projects.

Facebook to buy 170MW of windpower in landmark renewables deal 
(Source: Power Engineering International)

Renewable energy developer Apex Clean Energy has announced a power purchase agreement (PPA) with Facebook for approximately 170MW of renewable power from its Lincoln Land Wind project in the US state of Illinois, making the social media giant Apex’s largest corporate customer by megawatt.

Apple commits to be 100 percent carbon neutral for its supply chain and products by 2030 
(Source: Apple)

Already carbon neutral today for corporate emissions worldwide, Apple plans to bring its entire carbon footprint to net zero 20 years sooner than IPCC targets. That “footprint” includes the company’s supply chain and products… every device sold! (Apple is already carbon neutral for its global corporate operations.)

Alphabet issues sustainability bonds to support environmental and social initiatives
(Source: Google)

As part of a $10 billion debt offering, Alphabet has issued US$5.75 billion in sustainability bonds — the largest sustainability or green bond by any company in history. During the past three years Google has matched the company’s entire electricity consumption with renewables…and has been carbon neutral since 2007.

Corporate ESG Stakeholders – Supply Chain Management – What’s in Your Supply Chain Mix?

By Pam StylesG&A Institute Fellow

The current COVID-19 pandemic has exposed countless concerns, including (global) supply chain management issues near the top of the list.

Public and private-sector professionals and officials are soon to be attempting to get economies back up and running. Following Herculean and likely imperfect restart efforts, it will be important to debrief supply chain systemic failures and risks that have been exposed during the pandemic crisis.

ESG/Sustainability practitioners may be able to offer unique vantage to assist the debrief in collaboration with company supply chain experts and management teams.

Well-established ESG tracking practices and voluntary reporting frameworks, such as GRI (est. 1997) and CDP (est. 2000), could possibly be used to expand internal information sharing and analysis to augment internal supply chain risk assessments, monitoring and oversight capabilities.

ESG reporting frameworks are not necessarily a perfect fit or infallible, however they could potentially provide existing information platforms from which to add and/or improve accessible reporting, analysis and assessment, and executive leadership observation in a multitude of strategic (multi) sourcing risk assessments and repositioning exercises to come.

As we all try to learn and make important changes going forward, important questions to ask:

What do you know about your company’s suppliers’ supply chain, their suppliers, and so on?

The Business Continuity Institute, Zurich Insurance Company and others have been raising the red flag for years that too many companies do not have full visibility of their supply chain, nor the ability to fully track components through the full vertical supply chain.

Just a few recent examples of how reality has suddenly struck some pharmaceutical, consumer products and electronics companies (the list of other sector impacts can go on):

  • U.S. Pharmaceutical supply chain dependencies on China were well known at high levels prior to COVID-19, but effectively nothing was done about it and consumers were unaware of the looming risk.
  • Consumer Products giant Procter & Gamble indicated 17,600 products could be affected by Coronavirus in China.
  • Apple is dealing with pandemic-driven supply chain and sourcing woes.

Back in 2008 PwC published a fascinating paper about German companies supply chain sourcing practices in China, in which it suggested companies take a closer look at their KPI’s.

Who should raise warning flags and influence corrective supply chain action?

Supply chains can be very complicated with many layers or tiers, all the way down to original raw materials source. Aggregate supply chain geographic risk management is surely challenging.

As a specialist at well-known Gartner Supply Chain observed, “COVID-19 should be a wake-up call to boards of directors, CEOs and supply chain leaders that being well prepared for disruptions, regardless of their cause, is not an optional extra. It is a business necessity.

Companies are learning painful lessons in the shortcomings of legal boilerplate risk disclaimer language in situations like today’s. These lessons should compel executive leadership and Boards to step-up their efforts and investment in overseeing supply chain strategy and active risk management mitigation.

Does your company regularly review and remediate identifiable aggregate risks across the company’s supply chain and associated third-party relationships?

As recently pointed out in a COVID-19 related article by another G&A Institute Fellow, Daniel Goelzer, “Internal auditors are missing key risks.” He went on to observe,

“The Institute of Internal Auditors (IIA) has released its annual survey of Chief Audit Executives. The 2020 North American Pulse of Internal Audit “reveals serious gaps in internal audit’s coverage, with audit plans deficient in key risk areas.”

“For example, the IAA found that almost one-third of respondents did not include cybersecurity/information technology in their audit plans. In addition, more than half did not include governance/culture or third-party relationships, and 90 percent did not include sustainability.”

Postulating that the professional supply chain management tools kit is loaded with granularity to boggle the mind, it is fair to suggest the possibility that the many different tools may inadvertently complicate aggregate risk assessments.

Thus, we should think about whether there might be an opportunity for ESG/Sustainability professionals to constructively share their inherently top-down vantage and tools kit to assist companies with additional angles for risk assessment and oversight.

Brainstorming how the growing mainstream ESG/Sustainability field can help:

One gets a strong sense that professional supply chain experts across the board are now committed to re-engineer their collective body of knowledge and management resources to truly understand–down to the last pharmaceutical raw ingredient source, medical gear and equipment–the geographic and geo-political risks of their companies’ product vertical manufacturing and supplies.

First, let’s acknowledge that professional supply chain experts have a lot of knowledge, skills and complex management tools at their disposal that those outside their discipline know little about.

Second, kudos to the U.S. Army Corps of Engineers for their brilliance and ingenuity. Their recent reminder to all of us that, when a problem is large and complex and a fast solution is needed, it’s worth remembering the “keep it simple” concept.

Their challenge: emergency need to rapidly expand hospital bed and critical care capacity in multiple locations across the country.

Their solution: work with the infrastructure already there – large convention centers, empty hotels, and the like – and quickly retrofit them to meet the hopefully short-term surge capacity needs.

So now let’s apply the “keep it simple” concept, to think about what infrastructure we already have that can be efficiently and effectively adapted to immediate re-purpose, constructive to supply chain risk management.

Pre-dating the world’s awareness of the coronavirus COVID-19 crisis, the Global Reporting Initiative (GRI) stated in an article published November 15, 2019, that it “recognizes that joining the dots between corporate reporting and the practical changes needed to promote transparent supply chains can be challenging.”

In that same article, GRI announced its new two-year business leadership forum to help businesses work through challenges to bridge the gap between supply chain management and reporting. Your company may already use or be familiar with the GRI reporting framework.

Specific to supply chain, you might take another look at three GRI KPI sub-series: 204 – Procurement Practices, 308 – Supplier Environmental Assessment, and 414 – Supplier Social Assessment.

GRI is the oldest and most widely recognized voluntary ESG/Sustainability reporting framework and provides a wide range of supply chain related leadership interaction. It has alliances and synergies with the ISO certification standards and CDP, among other organizations.

Hence, GRI could be a robust resource to turn to for facilitating internal supply chain risk discussion, brainstorming and improvement.

CDP, originally known as the Carbon Disclosure Project, has grown beyond carbon to include a host of other key sustainability topics including supply chain. Several germane excerpts from the CDP Supply Chain Report 2018-2019:

  • Companies’ supply chains create, on average, 5.5 times as many greenhouse gas emissions as their own operations. (This hints at the veritable iceberg of suppliers beyond the companies’ direct control.)
  • Having a single, common disclosure platform is also proving to be beneficial. Amongst program members, 63% are currently using, or considering using, data from CDP disclosures to influence whether to contract with suppliers or not.
  • Managing supply chain risks, impacts, and capturing opportunities for sustainable value creation is complex. However, the fundamental steps are common across all organizations: understanding, planning and implementing. Learning from outcomes is essential in order to deepen and broaden the value of a Supply Chain strategy.
  • This year a record number of companies submitted disclosures on climate change. CDP supply chain members made requests to 11,692 suppliers, with 5,545 responses received from businesses headquartered across 90 different countries. This is a 14% increase on the 4,858 responses received in 2017.

Taking inspiration from the U.S. Army Corp of Engineers, a serious question to ask is whether either or both the existing GRI and CDP reporting and data analysis infrastructures could be used (1) ingeniously for a foundation from which to build or expand distance and country concentration inputs to provide additional foundation for sourcing risk analysis and oversight capabilities for companies, as well as (2) to facilitate improved global commerce and public stakeholders supply chain risk awareness?

Concluding Encouragement

To ESG/Sustainability practitioners:

Your reporting frameworks, databases and analytical tools may be well-positioned for collaborative solutions to help companies identify and address deep-tier supply-chain risks — both immediate (public health/safety) and longer-term (climate change) — that can and should now rise to a higher level of scrutiny.

When it comes to Sustainability – climate change is important, but supply chain is urgent.

Pamela Styles – Fellow G&A Institute – is principal of Next Level Investor Relations LLC, a strategic consultancy with dual Investor Relations and ESG / Sustainability specialties.

Technology: Providing Vital Components Influencing the Fight Against COVID-19

G&A Institute Team Note
We continue to bring you news of private (corporate and business), public and social sector developments as organizations in the three societal sectors adjust to the emergency. This is post #17 in the series, “Excellence in Corporate Citizenship on Display in the Coronavirus Crisis” –

16 April 2020   #WeRise2FightCOVID-19   “Corporate Purpose – Virus Crisis”

By Lama Alaraj – Sustainability Reporting Analyst-Intern at G&A Institute

As the tasks of our everyday world are put on hold, all around the world we are playing the waiting game, hoping for an end to this madness.

While at home, waiting for the world to be “normal” again, often our only source of communication with the outside is through our tech devices.

Without most people doing much to get ready for the unanticipated spread of the virus, technology for connecting with one another and the outside world was widely-available and already serving as our first source of comfort…and tech connectivity remains so during this crisis.

Where we stand today: Many sectors in our economies are muted and our reliance as a global society leaning on the digital world greater than ever.

What about after the crisis ebbs and then eventually passes? This is a survey of what is happening in the virus crisis and how tech companies are lending their support. And what developments during the crisis might be breakthroughs for future use.  Here is a round-up of what tech companies are doing in the virus crisis.

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Blue Dot
From the beginning of the crisis, this Canadian tech startup had caught on to the danger posed by virus even before the WHO released an official statement. Blue Dot used a cloud-based GIS platform that works to detect infectious disease outbreaks around the world. This sophisticated technology also uses AI to send alerts about diseases tailored to the affected region (source: Bluedot, 2020).

The power of knowledge enabled by these approaches to use of advanced technology is unrivaled. Artificial intelligence (AI) has the capability of harnessing a previously unthinkable amount of data to sift through, then applying results to an algorithm and calculating vital information that influences our responses (Source: Bowles, 2020).

Technology tools were not only able to detect the first few cases of COVID-19, but through this innovative software development, Blue Dot was able to predict the region the disease was going to spread to from the initial location at Wuhan.

The CBS Network program “60 Minutes” had a good look at the technology and approach behind the success of the Blue Dot detection capabilities.  The program:  ‘The Computer Algorithm That Was Among the First to Detect the Coronavirus Outbreak”.

Subtext:   On New Year’s Eve, a small company in Canada was among the first to raise the alarm about an infectious disease outbreak. Its computer algorithm calculated where the virus might spread next. The technology could change the way we fight another contagion.

You can see the segment here: https://www.cbsnews.com/news/coronavirus-outbreak-computer-algorithm-artificial-intelligence/

We are seeing the global tech giants partnering with the American government to fight against the pandemic. Supercomputers and Artificial Intelligence are the key components in the battle.

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The IBM supercomputer (Watson) is built to analyze standard mathematical problems utilizing AI to generate algorithms based on various models.

In Oak Ridge National Laboratory, the IBM technology was used to look at 8000 different drug compounds – quickly narrowed down to 77 that are believed to be possible components of a future vaccine (Gil, 2020).

This supercomputing / processing power has helped in the current crisis by being able to conduct rapid research that otherwise would have taken years.

Although technology has not yet found a solution for our current dilemma, the foundations and resources these companies are providing are based on valuable insights — giving us relief from trying to understand this disease completely in the blind.

The relationship between health and technology — which has been going on for years —  is now leading the fight in the combat zone.  And there are many promising opportunities for society in the post-crisis, thanks to tech advances.

# # #

Microsoft – another global tech giant — has introduced a Healthcare chatbot. The bot uses machine learning to quickly assess COVID-19 symptoms and provide a resolution of whether you should stay home or seek medical help. The US Centre for Disease Control and Prevention (CDC) is currently using this innovation.

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A statement from Alphabet’s Google Inc, and Apple Inc was released recently in regards to the latest development against the fight. The tech giants are now going to utilize AI through our smartphones in order to be able to track the movement of COVID-19.

The end result is that our smartphones will actually start sending us warnings when we have come into contact with a person who has tested positive with the deadly virus.

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Although this is an incredibly sophisticated innovation that can help us flatten the curve, where do we draw the line when it comes to AI and our morals and ethics?  And personal privacy?

There have been a lot of positive changes coming out from this sector that will aid the world’s health professionals with resources to speed up the process in finding a cure.

However, the concept of utilizing surveillance and accessing our private medical records is an area of concern for many. This exact turn in events is what makes humankind fear the coming of AI.

While economies around the world are experiencing a global shutdown and many are suffering due to this, some tech companies have actually experienced new growth.

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Zoom, a video conferencing application, actually experienced a dramatic surge in the amount of users (10X user growth just in days!).

Many people in all walks of life had to adapt quickly to the new norm and Zoom presented its platform as the easy, available answer to be able to connect multiple users at once making meetings, interviews, school classes possible. (The company did experience problems and suffered wide public criticism in the rollout to a broader audience, with many new users mostly unfamiliar with the platform.)

As Zoom shows, the world as we know it every day can be completely transformed in the blink of an eye.

In a world that has just turned dark, our strength must not be divided. Zoom in its concern for society gave us the platform to jump back into our accustomed social constructs in order to hold onto some sense of normal — but for many, through a digitalized lens.

# # #

Bloomberg LP reported that Samsung was experiencing growth in the crisis. The company released their results for the Q1 with an unexpected increase in sales by 5%.

The positive performance of some tech companies can be attributed to the economic shock we are in due to the pandemic. The instantaneous lock-downs across the world changed the consumer demand pattern, where the almost-complete transition to work from home and adaptation to social distancing spiked a demand in video gaming — and thus demand for semiconductors that Samsung provided (Kim, 2020).

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Cautionary Note
The growth the companies are currently experiencing may not be sustainable throughout the rest of the year due to the continuing, aggressive economic downturn and spreading of the virus.

With all these changes that we are seeing it is important to take into account the concern that some may not be able to take part in this ongoing transition. Many businesses have completely shut down for the time being without being able to continue production from home.

We are asking ourselves the questions: What will happen to these concerns when the virus crisis levels off and then subsides? What will happen to their workers?

Moreover, in areas where poverty is more prevalent, and rural regions, there is a real digital divide. This is becoming quite evident in the crisis.

Not every household has access to the internet (or can afford access) and therefore individuals and families cannot take part in the current state of daily life.

The opportunity to cling on to some piece of our world as we knew it is not available to all. For example, there are many school children who currently are not able to attend school, and without technology are missing out on continuing their education. Often, this is simply because they do not have adequate access to the internet or a machine to use for their class work.

We are seeing companies in the tech industry doing their part through the donation of large sums of money to various needy causes.  Examples:

# # #

Google has stepped up and is donating US$800 million to help governmental institutions and small businesses through this pandemic and economic crisis. The money will be supplied through channels of advertising credits/grants and loans (Zakir, 2020). Although this does not “fix” the detrimental effects of COVID-19, the tech giant provides temporary relief in dire times.

# # #

Chuck Robbins, the CEO of Cisco released a statement that the company will be donating “$225 million in cash, in-kind and planned-giving” to support the cumbersome fight against the pandemic.

During times of crisis, of course we do need business leaders like this CEO to help to meet peoples’ needs in order to provide humanity with hope and comfort amid the chaos. That includes shifting from normal production to emergency supplies for the medical community.

# # #

Honeywell has turned their operations over to producing N95 masks in their facilities, to help to address the global supply shortage. Efforts such as these are helping to make us more capable of coping through this crisis and the corporate contributions are helping buffer the severity of the pandemic.

The significance of the technology sector’s heavy involvement with the pandemic of today is no surprise. While many of us are sheltered at home, the internet has become our source of sanity. For many governments, artificial intelligence is their presumed knight in shining armor, ready to save the world.

I do believe that in the new normative we will not be shying away from our relationship with groundbreaking technology. However, there is much uncertainty in this transition.

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The Future Outlook
Our heavy dependence on the technology sector during this crisis is going to have dramatic impacts in our labor force, education and our various economic markets. Moreover, current global economies who do not have a developed technological sector may be left further behind and unable to reap benefits from the current against the pandemic.

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About the Author
Lama Alaraj
is a Sustainability Reporting Analyst-Intern at G&A Institute. She graduated from Dalhousie University (Canada) with a double major in economics and international development studies. Over the years, she developed a growing interest in the power of technology and how it manages to integrate in every sector in our global community.

In addition to the G&A analyst-internship, Lama is currently working as a marketing consultant for Web.com, a company built on web development.

Her personal goal is to take the knowledge she gains from this role and apply it extensively throughout any project or role she takes on.

Lama is very excited to be part of the G&A Institute community and to learn about how industries manage to adhere to their environmental responsibilities. Lama thinks that as the climate continues to change, the choices we make today are more vital than ever.

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G&A Institute Team Note

In this series we are bringing you news of private (corporate and business), public and social sector developments as organizations in the three societal sectors adjust to the emergency.

New items will be posted at the top of the blog post and the items posted today will move down the queue.

We created the tag “Corporate Purpose – Virus Crisis” for this continuing series – and the hashtag #WeRise2FightCOVID-19 for our Twitter posts. Do join the conversation and contribute your views and news.

Do send us news about your organization – info@ga-institute.com so we can share. Stay safe – be well — keep in touch!

Marriott, Apple, Google, Facebook, Schein, CVS, Sentient Technologies, American Express, JPMorgan Chase — Finding Ways to Help – and Innovate!

G&A Institute Team Note: We continue to bring you news of private (corporate and business), public and social sector developments as organizations in the three societal sectors adjust to the emergency.

This is post #15 in the series, “Excellence in Corporate Citizenship on Display in the Coronavirus Crisis” – April 10, 2020

#WeRise2FightCOVID-19 “Corporate Purpose – Virus Crisis”

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

The team members at G&A Institute are in conversations throughout the day with corporate managers, with the discussions centering on sharing “what companies can do / what companies are doing” to meet the challenges of the cororanvirus pandemic.

That consideration for many companies today is both internally and external focused — the key tasks are keeping people safe, serving the community’s needs, keeping the corporate operations going to be best of their ability, and looking forward to the post-crisis era.

Here are a few selections of what executives and managers and their organizations are doing.  As we are thinking…

Life hands you the lemon / squeeze! / make the lemonade!
And get it around to others as fast as you can.

Setting An Example: Cut My Pay, Says Schein CEO

Stanley M. Bergman, CEO of Henry Schein Inc. (important suppliers to the medical community) is taking a temporary cut in salary during the virus crisis. As his company’s client base experiences hazards and cares for patients, the CEO (in SEC filing) will take 100% pay cut.

The company also stopped its share buyback program. The company markets equipment and supplies for clinics, dentist & doctor offices, and other segments of healthcare.

Schein is a co-founder of the Pandemic Supply Chain Network, using its own supply chain for distribution of testing supplies. The network was created at the 2015 Davos meeting as a public-private partnership. Now, the PSCN is part of the global COVID-19 response.

Information for you if would like to become a part of the effort: https://www.weforum.org/projects/pandemic-supply-chain-network-pscn

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Apple & Google Teaming For New “Contact-Tracing” Bluetooth App

It’s hard to get one’s head around the pandemic: millions, tens of millions, yes billions of people are stationary, immobile, not able to move around, sheltered at home, working remotely.

And tens of millions of us are not able to not move around, we must be at our posts, picking the crops, stocking the warehouse, driving the truck, stocking the shelves, manning the cash registers at retail.

Or more frightening, driving the ambulance, being on post in the emergency room or in the ICU, or in the wards with non-COVID patients.

Or driving the police car to respond to “the unknown”, or the fire truck to extinguish the blaze and save lives. Think about the EMT in the ambulance, hour after hour, running to danger.

Keeping on touch, virtually all of us, mobile and immobile rely on our cell phone…the lifeline to loved ones as well.

For those who must be on their designated post, moving around, interacting, the fear is that the virus could be too close, within reach to infect. To the rescue: Apple Inc. and Google – in a rare partnership, the rivals are adding technology to the phone to alert us if we’ve come into contact with a person with the virus.

This is to be an opt-in feature – “contact-tracing” – that immediately alerts us: quarantine and isolate and then treat or seek treatment because we have been in close contact with an infected person.

Over time we can expect to see this application added to the basic phone operating systems.

Watch for the news in May for iPhones and Android; the management of the system will be by public health agencies. The reports to the phone will be on anonymous basis. As the two companies announced the collaboration,  The phone owner must opt-in to be part of the network.

MIT says it is developing a similar system. Of course, there are numerous privacy protection issues – we’ll see how that goes on the rollout.

Facebook Joins the Tracing Effort

Facebook is one of the world’s leading social media platforms (claiming 2 billion-plus of the “connected”). Users are invited to share their own coronavirus symptoms and experiences to help researchers pinpoint “where” the disease is occurring.

Carnegie Mellon, the great tech school, is using the data in pilot effort to try to see where data is telling us help is needed. Such as the all-important ventilators that are in such short supply. Or where “go home/stay home” guidance or orders are needed. The output is going to be shared with public sector health managers.

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Headed to the Drug Store? How Do You Know What You Need is There?

The CEO of the nationwide CVS drug store network, Larry Merlo, was interviewed by Barron’s Jack Hough. The CVS stores are in the midst of becoming “HealthHUBS” (to provide medical services) and strengthening is “Caremark” program for pharmacy benefits management. And now, the CVS workforce is pressed to help customers in the midst of the virus crisis.

Explains CEO Merlo: Home deliveries are up by three times the usual volume. Tele-medicine connections are up two times. CVS waived copays for tele-medicine and for deliveries. COVID-19 testing was starting in Shrewsbury, Massachusetts (in a store parking lot) to do 100-plus test a day. Stores are being kept stocked. Limits are applied to prevent hoarding.

The company maintains close contact with suppliers to keep the pipeline stocked and moving to stores. CDC guidelines are followed in the stores. Cash bonuses are being doled out to hourly store staff, pharmacists, managers. There is day care service where possible; sick leave is granted to part-timers.

Lessons Learned: Keeping mind the Chinese sign for crisis (“danger” and “opportunity”), we learn that the CVS CEO thinks the crisis has helped to strengthen the firm’s confidence in what CVS can do to help to change the trajectory of healthcare delivery.

Pharmacies (local) and tele-medicine (distant) are key elements. The critical role that healthcare professionals play in local communities (where CVS outlets are located) is really being demonstrated today.

Marriott and Hilton have been working with CVS to create a transition for those folks who are furloughed. Speaking of Marriott…

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Holding on to Customers / Serving the Local Community & Responders

Marriott CEO Arne Sorenson in communications to patrons explains that cancellations for scheduled trips are being adjusted out to June 30th (usually 24 hours notice is required). Expiration of points accrued for use at the properties is being extended. “Experience flexibility” is the theme.

And about helping the communities in which the resorts and hotels are based:

  • Marriott properties are donating food, pre-cooked and cooked meals to crisis responders, as well as a supply of cleaning products, masks, gloves, sanitizers, wipes, shower caps, anti-microbial wipes, and other supplies to local communities. Hotel windows sport signs and symbols of love and support to those passing by.
  • Working with American Express and JPMorgan Chase (two credit card partnering organizations), Marriott committed to provide $10 million worth of hotel stays to professionals on the front lines of the crisis. “Rooms for Responders” are being made available in New York City, New Orleans, Chicago, Detroit, Los Angeles, Las Vegas, Washington DC, and Newark, New Jersey.
  • To reach the responders, Marriott is working with the American College of Emergency Physicians and Emergency Nurses Association to help match doctors and nurses with available rooms.

And the “Community Caregiver Program” initiative (coordinated by franchisees and property owners) provides deep discount accommodations near to hospitals to first responders and healthcare professionals stepping up to serve local communities. This is available in North America, the Caribbean and Latin America (at 2,500 hotels to date).

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The Food Supply in the Crisis – Changes in Post-Crisis Behaviors

What is happening in the food sector? Mike Geraghty writing on the Sensient Technologies Corporation platform shares the results of a mid-March 2020 study by Nielsen that forecasts six key consumer behavior shifts happening during the crisis.

The findings will have a major impact on the food industry and will/could lead to permanent changes in the way consumers shop for food.

These are (by their headlines):

  • Proactive Health-Minded Buying
  • Reactive Health Management
  • Pantry Preparation
  • Quarantined Living Preparation
  • Restricted Living
  • Living a New Normal

Under each category headlines there are explanations of the shifts seen in consumer behavior and COVID-19 event markers. There’s valuable findings and shared perspectives here for you from the Sentient folks (providers of color technologies and services for the food and beverage industries).

The commentary: https://sensientfoodcolors.com/en-us/global-markets/covid-19-changing-food-industry/?utm_source=FoodNavigator&utm_medium=Email%20Top%20Text%20US&utm_campaign=COVID&utm_content=Apr%202020

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G&A Institute Team Note:
We continue to bring you news of private (corporate and business), public and social sector developments as organizations in the three societal sectors adjust to the emergency and organize their response.

New items are posted at the top of the blog post and the items posted today will move down the queue.

We created the tag “Corporate Purpose – Virus Crisis” for this continuing series – and the hashtag #WeRise2FightCOVID-19 for our Twitter posts. Do join the conversation and contribute your views and news.

Do send us news about your organization – info@ga-institute.com so we can share. Stay safe – be well — keep in touch!

Household & Personal Product Industry’s Response to COVID-19 – Strong Display of Corporate Citizenship by the House & Personal Products Industry

G&A Institute Team Note: We continue to bring you news of private (corporate and business), public and social sector developments as organizations in the three societal sectors adjust to the emergency. This is post #11 in the series, “Excellence in Corporate Citizenship on Display in the Coronavirus Crisis.  #WeRise2FightCOVID-19   “Corporate Purpose – Virus Crisis”  –  April 6 2020 

By Kelly Mumford – Sustainability Reporting Analyst Intern – G&A Institute

The current reality around the world has shifted dramatically since the outbreak of COVID-19 a few months ago. As the number of confirmed cases and deaths continue to rise across countries like Italy, Spain, and the U.S., there have been many reactions across industries to help out.

As of today, more than 10,000 people have died in the US, and unemployment rates are now at the highest ever as I write this.

Overall, the economy is struggling and our healthcare system is overwhelmed. However, during this time, the corporate response has also been overwhelming.

Many companies and corporations across sectors are feeling the effects of this pandemic on their operations and at the same time acting to help those who need it the most during this time.

There have been some significant, well-publicized responses from U.S. tech giants Microsoft, Apple, and Amazon. These companies have donated millions to various response efforts across the country.

Many other corporations are also doing what they can to continue paying employees during this time.  Amazon is hiring tens of thousands of employees to help their delivery efforts.

Needless to say, corporate actions have been indicative of a commitment to corporate social responsibility during the coronavirus crisis.

This is a recap of recent actions by companies in the Household and Personal Products Industry.

In the Beauty Field: Estée Lauder Companies

The household and personal product industry is no different. Estée Lauder especially has been leading a strong example. Last week, Estée Lauder Companies announced it will being shifting production to hand sanitizer to help relieve the shortage that has severely affected those in the healthcare industry.

They are re-opening a temporarily-closed facility in suburban Long Island, New York to produce hand sanitizer and volunteer employees will be compensated. However, their efforts don’t stop there.

Estée Lauder is also donating US$2 million to Doctors Without Borders — the organization that is greatly helping countries around the world with less medical support fight the coronavirus.

Also, Estée Lauder made a $75 million dollar grant to support the establishment of The NYC COVID-19 Response & Impact Fund. This fund unites many philanthropies and will go to support many vital community organizations and social services.

Estée Lauder Companies awarded $800,000 to relief efforts in China such as the Red Cross Society of China, the Shanghai Charity Foundation, and Give2Asia with an additional $1.4 million of donations to the China Women’s Development Foundation to support front line medical staff.

It is easy to see with these actions the Estée Lauder Companies’ strong values and family commitment to corporate social responsibility is admirable. Their actions are a promising example of the good that can arise during crisis.

SC Johnson Steps Up to Help

Another huge name in the industry — SC Johnson, another large company with deeply embedded family values is furthering their efforts against COVID-19 with a $5 million donation. The company will put that money towards the needs of the healthcare workers on the front lines.

They will be delivering care packages to police, fire and medical personnel including cleaning and disinfectant products made by SC Johnson. This donation comes in addition to the $2 million and $1 million they have already donated to the CDC Foundation’s Emergency Response Fund and to other efforts in China, Italy and the U.K.

The company said it was continually assessing the most urgent needs of people around the world, and acting accordingly. They have supported many healthcare needs across Europe, Asia, and Latin America to protect families from spreading the virus.

This support has come in the form of cash, product donations, and educational programs. As their headquarters in located in Racine, Wisconsin they have also made a special donation to the town to help support school children in the area and first responders.

Local focus:  The donation will be provided through a partnership with the Racine School District, the Racine YMCA, and Ascension All Saints Hospital.

Lastly, as a way to support the most vulnerable groups during this time the company has also made multiple $25,000 donations to food pantries and homeless assistance organizations to help ease the pressure on these already strained groups.

SC Johnson’s donations and efforts during this pandemic demonstrate a strong commitment to their corporate social responsibility efforts but more important, their assessment of placing aid to some of the most vulnerable groups reveals a targeted and strategic approach to CSR.

The Company is not just throwing money “anywhere” — but rather being strategic in their assessment, and loyal to the community of their headquarters..

Procter & Gamble – Relief Funds and Continued Production

Procter & Gamble, another one of the largest enterprises in the industry, has set up a special relief fund for COVID-19.

P&G has a long running record of CSR reporting and supporting communities so it’s not surprising that they have been working with their partner organizations to provide support and relief to people during this time.

They have created a donation portal for receiving donations — which they will match all donations up to $500,000 and give donations to support the healthcare providers around the world.

The largest P&G factory in Pennsylvania will start production of face masks during the pandemic. Employees will have regular temperature checks, will be socially-distanced, and there will be constant sanitization of all areas. 

Their factories are still open during this time, recognizing that the wide range of their products are necessary for many households, in normal times and during the crisis.

* * * * * * * *

Kelly Mumford is a GRI Report Analyst Intern at G&A Institute. She is a recent graduate of the Development Planning Unit at the University College London. She holds an M.S. in Environment and Sustainable Development (with merit). Kelly led a group during their research on the water and sanitation practices of a coastal city community in Freetown, Sierra Leone. She now plans to pursue a career in sustainability, focusing on ESG and leveraging her research experience and the knowledge gained of sustainability reporting during her internship with G&A Institute.

Sources For Your Reference

G&A Institute Team Note
We continue to bring you news of private (corporate and business), public and social sector developments as organizations in the three societal sectors adjust to the emergency.

The new items will be posted at the top of the blog post and the items today will move down the queue.

We created the tag “Corporate Purpose – Virus Crisis” for this continuing series – and the hashtag #WeRise2FightCOVID19 for our Twitter posts.  Do join the conversation and contribute your views and news. 

Do send us news about your organization – info@ga-institute.com so we can share.   Stay safe – be well — keep in touch!

Important Crisis Talk About PPE – Personal Protective Equipment – Excellence in Corporate Citizenship #3

by Hank Boerner – Chair & Chief Strategist – G&A Institute and the G&A team   — continuing a new conversation about the corporate and investor response the coronavirus crisis…continuing the second week of the conversation…   Post #3 – March 23 – first of two 

Introduction
These are the times when actions and reactions to crisis helps to define the character of the corporation and shape the public profiles of  each of the corporate citizens. For companies, these are not easy times.

Many important decisions are to be made, many priorities set in an environment of unknown unknowns — and there are many stakeholders to be taken care of.

The good news:  Corporations are not waiting to be part of the solution – decisions are being made quickly and action is being taken to protect the enterprise.  This is no easy task while protecting the corporate brand, the reputation for being a good corporate citizen, watching out for the investor base and the employee base — and all stakeholders.

What are companies doing? How will the decisions made at the top in turn affect the company’s employees, customers, hometowns, suppliers, other stakeholders? Stay tuned to our continuing commentary.

* * * * * * * *

Important Crisis Talk About PPE – Personal Protective Equipment

About those face masks…”PPE’s” for this conversation include protective clothing, gowns, face shields, goggles, face masks, gloves, and other equipment designed to protect the wearer.

These could be those PPEs especially designed for medical use (such as for use in surgery or dentistry) that are fluid-resistant, loose-fitting and disposable, for example. Many of the devices are regulated such as by FDA, or reviewed and registered with the agency.

Or the N95 that many refer to could be the ubiquitous industrial mask, tye disposable type, used in many industries.  It’s important to note that the medical version (“S”) is desperately needed in the medical crisis, of course.

And the corporate sector is stepping up to fill the gaps.

Many PPE items are in short supply. Right now, FDA is collaborating with manufacturers of surgical masks and gowns to “better understand” the supply chain issues related to the outbreak, and to deal with widespread shortages of products.

The U.S. government has strategic stockpiles of surgical (medical) N95s filtering facepiece respirators that exceed the manufacturers’ recommended “shelf life” — and so the Agency is considering whether or not to release the equipment during the crisis.

The good news is that many of the devices tested should provide the expected level of protection to the user. This varies by manufacturer and shelf life.

Manufacturers identified by CDC in its communications include 3M, Gerson, Medline/Alpha Portech, Kimberly-Clark, and Moldex. Other makers include Cardinal Health, Ansell, DACH, CM, Hakugen, Shanghai Dasheng, Yuanqin, and Winner. The CDC is providing guidance at: https://www.cdc.gov/coronavirus/2019-ncov/release-stockpiled-N95.html 

(Note: Kimberly-Clark also produces toilet paper, towels and diapers – items flying off consumer shelves these days.)

The N95 industrial mask is a different situation than the “s” model designed for medical use, since the N95 model is made for industrial and construction use (as examples) and not for medical care.

In a crisis such as this one, “something” would be better than nothing, or having medical workers fashion masks out of materials to try to be safe.

The “perfect” solution here would be the enemy of the good, as the saying goes. And so millions of N95 are pressed into action and industry is responding with donations.  And companies are in high gear to produce masks.

Background: With the masks generally in short supply, the Centers for Disease Control (CDC) is saying that the usual N95 respirators are not recommended for use by the general public to try protect themselves from respiratory diseases, including COVID-19. Also, people who are well should not be using surgical (face) masks to protect themselves from the virus.

Worn properly, the surgical mask (the “s”) can help to block large-particle droplets, splashes, sprays or splatter containing viruses or bacteria – but not small particles in the air transmitted by coughs, sneezes or medical procedures because of the loose fit (face mask, on the face). And the masks are suggested to be used just once and then discarded.

N95 Respirators generally are protective devices designed to achieve a fit tight and serve to filtrate airborne particles, exceeding the protection of the face mask. The design forms a seal around nose and mouth – as explained, there are both industrial and surgical version.

The industrial version is used in construction, food preparation, manufacturing, etc. The surgical version is the N95s, tested for various medical applications. Manufacture of these devices is regulated.

The N95s is in great demand for healthcare workers and the CDC is urging “conservation” of surgical masks and gowns (such as use of reusable gowns vs. single use) while supplies are being made available to medical professionals.

* * * * * * * *

3M – 24/7 Production Lines In Action

The company is the largest producer of the N95 respirator face mask – the global output was just upped to the target of 1.1 billion or 100 million monthly. Inside the U.S. the company makes 400 million-plus N95’s in a year. Investment is now being directed to produce 30% more over the next 12 months.

The company is advising consumers not to show up in stores for the masks  – production should be directed to the front lines, those caring for coronavirus-infected patients.

In response to the crisis, 3M is striving to produce 100 million masks per month going forward (the global output). Current production is 35 million per month. Healthcare workers will receive 90% of the production, and the rest will go to other sectors of the economy (like food, energy, pharm companies).

This week 500,000 respirators are going to sent to New York State/City and Seattle. The company also produces hand sanitizers, disinfectants and filtration solutions, and is working with government officials, customers and distributors worldwide to address the supply issue.

* * * * * * * *

Honeywell is expanding production of masks at its Smithfield, Rhode Island eye protection products plan to make N95 masks – and hiring 500 workers immediately to support the effort. The products will go to the U.S. Department of Health and Human Services for the national stockpile. (VP Michael Pence talked about this in the weekend briefing – orders for “hundreds of millions of masks” were placed through the Federal Emergency Management Agency.)

* * * * * * * *

Dr. Anthony Fauci (head of NIH Allergy and Infectious Disease) said fresh supplies of masks will be reaching medical professionals in days, not weeks.

Note that the U.S. Congress expanded the U.S. PREP Act to ensure both types of N95 respirators will be available to hospitals and healthcare workers.

* * * * * * * *

Challenge: Mike Bowen, principal of Prestige Ameritech (a mask maker in Texas), told The New York Times that 95% of face masks are made outside of the U.S. including by U.S.-headquartered companies that moves production offshore. He’s getting 100 calls a day now for his products.

Challenge: Even for those companies making masks in the United States, we cite the example of Strong Manufacturing in Charlotte, North Carolina, making of 9 million masks each month. The raw materials come from Wuhan, China – ground zero of the coronavirus outbreak. The materials are not arriving (yet) – the boxes are on the dock in China.

Challenge: Just one facility here in New York City (the Columbia-Presbyterian system typically would use 4,000 N95 makes per day — and is now using 40,000 per day and expecting to double that in the crisis.

 * * * * * * * * 

And so — the Corporate Sector Responds

Apple:  CEO Tim Cook is going to donate millions of masks to healthcare workers in the U.S. and Europe (according to his weekend Tweet) – Vice President Michael Pence said that on the weekend White House Task Force briefing and the company CEO then confirmed this:

“Our teams at Apple have been working to help source supplies for healthcare providers fighting COVID-19. We’re donating millions of masks for health professionals in the US and Europe. To every one of the heroes on the front lines, we thank you” (CEO Tim Cook).

Tesla – CEO Elon Musk donated a truckload of PPEs (masks, gowns etc) to a UCLA Health center in California. We know this from Twitter tweeting. Musk told California Governor Gavin Newsom that 250,000 masks will be donated to California hospitals.

Hanes Brands – President Donald Trump at the weekend briefing talked about Hanes, the clothing maker, that is retrofitting factories to make face masks. The goal is to make 1.5 million masks a week, and working with Parkdale Mills America (they make the yarn for Hanes) and a consortium of companies, will ramp up to 5-to-6 million makes every week.

The company’s experts in supply chain and product development worked with the U.S. Department of Health and Human Services to develop the products and FDA has given its approval to masks that are not the traditional N95 but a prototype that can be used in N95s are not available.

The Hayner Hoyt Corp, a local company doing construction work at St. Joseph Health, in Syracuse (upstate New York) donated 1,200 face masks to the hospital. “I encourage other construction businesses and construction supply companies to see if they have any PPE that they can give to our healthcare providers during this critical time,” says the firm president, Jeremy Thurston. The hospital itself has reached out to doctors, dentists and vet offices to ask for donations of masks, gowns, eyewear, thermometers and other PPEs – something we will be seeing all over the nation to help to meet local shortages.

* * * * * * * *

G&A Institute team note: We continue to bring you news of private (corporate and business), public and social sector developments as organizations in the three societal sectors adjust to the emergency.

The new items will be posted at the top of the blog post and the items today will move down the queue.

We created the tag “Corporate Purpose – Virus Crisis” for this continuing series – and the hashtag #WeRise2FightCOVID-19 for our Twitter posts.  Do join the conversation and contribute your views and news.

Send us news about your organization – info@ga-institute.com so we can share.   Stay safe – be well — keep in touch!

 

Excellence in Corporate Citizenship on Display in the Coronavirus Crisis – #2

by Hank Boerner – Chair & Chief Strategist – G&A Institute and the G&A team   — continuing a new conversation about the corporate and investor response the coronavirus crisis…this is the beginning….

Introduction
These are the times when actions and reactions to crisis helps to define the character of the corporation and shape the public profiles of each of the corporate citizens. For companies, these are not easy times.

Many important decisions are to be made, many priorities set in an environment of unknown unknowns — and there are many stakeholders to be taken care of.

Employees – Customers – Suppliers – Regulators – Partners – Investors – Lenders – Communities – Civic Leadership.

As the the arms of the Federal government rush to aid the American society, CEO Chuck Robbins of Cisco put things in perspective in the story: “It’s critical that D.C. do something fast for companies – if you get 80 percent right today, it’s better than waiting a week and getting it 90% right.”

The good news:  Corporations are not waiting – decisions are being made quickly and action is being taken to protect the enterprise – no easy task while protecting the corporate brand, the reputation for being a good corporate citizen, watching out for the investor base and the employee base — and all stakeholders.

This continuing commentary in the first week of the crisis breaking through the barriers of doubt and with reality setting in. What are companies doing? How will the decisions made at the top in turn affect the company’s employees, customers, hometowns, suppliers, other stakeholders? Stay tuned.

* * * * * * * *

Friday, March 20, 2020 – Day Four of the National Shutdown in the Coronavirus Crisis…  The Second Roundup of the Day –  Evening Today

Walmart Responds – Setting the Pace for Mass Retailing

Walmart is the largest retailer in the United States of America, with branded stores, Sam’s Club stores, warehouses and other facilities in literally thousands of communities across the continent.

During hurricanes, floods, superstorms and the like, the Walmart men and women have stepped forward to aid their communities in various ways.

The company has a web site up for employees, customers and stakeholders to detail “Walmart’s Response to COVID-19″ (link below).

Among the steps announced so far:

The message from the CEO-President John Furner (Walmart U.S.) to his team members:  “We are so grateful for your hard work.  It’s been incredible to see Walmart associates step up to the challenge of serving America this month.  During a very uncertain and stressful time, you have done your jobs with calm, compassion and excellence.”

Full message here: https://corporate.walmart.com/newsroom/2020/03/19/walmart-u-s-ceo-john-furner-to-associates-we-are-so-grateful-for-your-hard-work

Walmart’s Walking-the-talk reward for associates:

  • Every full timer in stores, supply chain and HQs will receive $300 and part-timers $150 in the bonus (on April 2nd). The bonus payments for Q1 will be accelerated to be paid later in the month of April – the amount will be just as if the first quarter goals were reached.  No associate will receive less than the first Q bonus payment. Cost to WMT: US$180 million.
  • Overall, $550 million will be going to WMT associates during this critical period.  2019 Q4 payments were made this week – so Walmart team members will be seeing money coming in March 19 – April 2 – April 30 – May 28.

We’re hiring!  More associates are needed – the doors are open for up to 150,000 temporary workers for stores, clubs, distribution centers and fulfillment centers – some may convert to permanent jobs after the crisis.  The 2-week application process is now 24 hours.  Information is at careers.walmart.com

The company beefed up its COVID-19 emergency leave policy to encourage sick employees to stay home, or those “uncomfortable”, those who are quarantined, and associates with the virus.

Today (March 20) from 6 a.m. to 7 a.m. employees had an “associates-only” shopping hour with the usual 10% discount expanded to include vital grocery items.

Consider the lift:  This company has 2.2 million associates worldwide.

Walmart has a huge footprint across North America and stretched into parts of the world.  Each week (in normal times) 265 million shoppers (customers and “members”) visit 11,500 stores under 56 banners in 27 countries and eCommerce websites.

Says CEO-U.S. John Furner:  “Thank you again for what you’re doing – America needs Walmart right now, and we have been at our absolute best.

Bravo, Walmart associates, for keeping us supplied as best you can in this emergency.

You can keep up with Walmart news at: https://corporate.walmart.com/coronavirus

* * * * * * * *

Give Us a Few Hours and You Will Have Your Hand Cleaner

LVMH, the luxury brand marketer, met France’s call for more hand sanitizer in just 72 hours. On a typical day the Orleans, France factory produces perfume (Christian Dior etc).  This Monday, reports The Financial Times, the first lines of hand sanitizer in plastic bottles rolled forth, headed for doctors and nurses in Paris hospitals.

The government of France called on industry to help – that was last Friday – and Monday the bottles began to head for boxes for delivery to the besieged hospitals.  (LVMH – Louis Vuitton, Moet Hennessey is the largest company in France.)

The company intends to produce 12 tonnes (!) of the gel to 39 hospitals in Paris (the APHP”) over the coming days and two other production lines (Givenchy, L’Oise and Guerlain Brand, Chartres) are coming on line.

Secret to the ramp up: FT writer Leila Abboud explains that sanitizing needs three main ingredients – purified water, ethanol and glycerine – and the company had these at the ready as the equipment was set up (cosmetics and pharma products being close cousins). The company makes liquid soap, moisturizing creams for the usual products – Dior, Givenchy, Guerlain.

Said the company:  “LVMH will continue to honour this commitment as long as necessary.”

* * * * * * * *

In related news The Financial Times tells us that other French companies have joined the battle.

  • BNP Paribas donated 500,000 masks to Paris hospitals.
  • Renault loaned 300 autos for medical purposes.
  • L’Oreal is retooling factories to make millions of hand sanitizers destined for nursing homes and hospitals.

Keeping in mind:  Makers of luxury goods will be hard hit in the current crisis, especially as the lucrative China markets shut down – both for sales and for production.  (LVMH is not reliant on China for production, but sales, definitely.)

* * * * * * * *

Closer to Home – Bacardi in Puerto Rico Steps Up

Bacardi Limited, makes of popular rums, will help to supply the ethanol required for making hand sanitizers.  The distillery in Catano, P.R. where 80% of the rums are made, is partnering with Olein Refinery to product raw materials that will contribute to the production of the products.

Target: at least 500,000 of the 10-ounce units of hand sanitizers – and these will be donated to local communities.  Said Jose Class – VP-Supply Chain & Manufacturing:  “This is a family-owned business sand we know what it means to take care of a community in need.  In the 158 years of [the family-owned] Bacardi, we’ve endured our share of challenging times and have learned that resilience, optimism and community are what will help us come out stronger.”

We’ll hoist a glass to that!  Make it BACARDI® – GREY GOOSE® – DEWARS® – BOMBAY SAPPHIRE® – MARTINI® – and other brands of this corporate citizen in a U.S. territory still struggling to recover from a devastating superstorm.

* * * * * * * * *

Reuters / Ethical Corp:  Moving to the Online to Share Important Perspectives & Guidance

Ethical Corp / Reuters Events create “Reuters Events Ethical Corporation” events.  While in-person meetings will be a zero right now and probably at minimum for a while, that does not mean that the sharing has to stop.

The partners are organizing a new webinar series of 60 minutes each to “deliver solution to key sustainability challenges”.  Senior event speakers from Europe and the USA will present at the upcoming sessions:

  • Investors Engagement: Measuring Your Social Impact
  • Traceability & Visibility: Successfully Map and Monitor Across the Tiers
  • Best Practice Sustainability Supplier Engagement
  • Climate Disclosures – Accurately Reporting Climate Impacts, Risks and Future Opportunities

G&A Institute regularly partners with Reuters / Ethical Corp and G&A’s VP Amy Gallagher is the point person who alerts our connections about upcoming Reuters / Ethical Corp conferences.  She’ll keep us posted on the webinar series – watch for our communications through the usual channels.

* * * * * * * *

Global Reporting Initiative – Staying Safe and Continuing on Course

Tim Mohin, Chief Executive of the GRI, updated the global community plugged into the standards organization with news from Amsterdam (HQs of the GRI):

  • Most employees have transitioned to remote work arrangements to continue the operations.
  • Virtual solutions are enabling stakeholder engagements through online platforms.
  • All air travel is restricted for the GRI workforce.
  • Employees are being updated and informed through messaging apps, video, collaboration tools.

The GRI organization’s three priorities: (1) the wellbeing of all employees worldwide; (2) continuing the work with partners; (3) meeting new challenges with resilience, dedication and hard work.

You should know: Timothy J. Mohin was senior director of CR for Advanced Micro Devices (AMD) and former chair of the Electronic Industry Citizenship Coalition (EICC) before joining GRI as chief executive.  He’s the author of the best-seller, “Changing Business from the Inside Out: A Treehugger’s Guide to Working in Corporations”.

Earlier in his career Tim was founder/leader of Apple’s Supplier Responsibility program, and also led Intel’s sustainability functions.

G&A Institute is Data Partner for the GRI in the United States of America, the United Kingdom and the Republic of Ireland (an EU state).   We value our long relationship with the GRI team and with Tim Mohin and our decade-long collaboration with GRI.

* * * * * * * *

The National Geographic Shoulders On – Facts and Science in the Forefront

The National Geographic Society has assembled the magazine’s COVID-19 “scientifically-accurate” information for subscribers (online). This includes text, graphics, photos, videos, “fake news” exposes, data sets, and much more.  Also, resources for families (“for facts geared toward kids and ideas on how to occupy their minds while they are out of school – at “Nat Geo Kids”).

All of this is in addition to the usual broad fare of science, geography and other content that the National Geographic offers.  The society’s national office in Washington D.C. is closed until at least March 31st

Says NatGeo:  “The work continues in these uncertain times.  It must.  Earth’s last wild places and millions of species are on the brink of being lost forever. If anything, this pandemic shows what happens when science and the experts are ignored.  We need solutions to the biggest challenges threatening our planet now more than ever. We can’t afford to pause our work, and we’ll do the best that we can to build a better future together while maintaining the health of all.”

* * * * * * * *

G&A Institute Team Note:
We will continue to bring you news of private (corporate and business), public and social sector developments as organizations in the three societal sectors adjust to the emergency.

The new items will be posted at the top of the blog post and the items today in this first blog post will move down the queue.

We are creating the tag “Corporate Purpose – Virus Crisis” for this continuing series – and the hashtag #WeRise2FightCOVID-19 for our Twitter posts.  Do join the conversation and contribute your views and news.

Send us news about your organization – info@ga-institute.com so we can share.   Stay safe – be well — keep in touch!

Today, We Have Corporate ESG Comparisons Galore – The Institutional Investor Has Access to Volumes of ESG Data Sets & Information – Where Can Others Find Scores, Rankings and Ratings of Public Companies?

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

These days the comparisons of companies ESG strategies and performance in sectors and industries and among investment peers (those companies chasing similar sources of capital) are continuing to gain momentum. 

There is a sizable universe of third party players — ESG raters, rankers, scorers — busily analyzing, measuring and charting company ESG performance.

These organizations assign proprietary scores, rankings, ratings and various kinds of comparisons (company-to-company, company to industry etc) for their investor-clients. (The institutional asset owners and their asset management firms.)

Companies typically get to see how they are doing when they inspect their ESG service provider profiles…but those data and information sets are not always publicly available. They are the secret sauce provided to investors — institutions holding equity or bonds or researching candidates for investment.

So how should the person without access to the major ESG service providers’ confidential output understand where the public company sits in the views of the analysts (at least the highlights, such as scores assigned)? 

Slowly but steadily some of the volumes of information provided to investor clients by the major ESG ratings agencies are making their way into public view. 

For example, you can see a public company’s Sustainalytics highlights on Yahoo Finance. For Apple Inc. / NASDAQ: AAPL “ESG Total Score” information, click here.

Our colleagues at CSR Hub® share a number of Ratings & Rankings and other CSR and ESG highlights on their web site and their “ESG Hub” information (which is available on the Bloomberg Terminal®)  CSR Hub is at: https://www.csrhub.com/

Now a neat presentation comes our way from Visual Capital, authored by Jenna Ross.  This is a mapping of “The Countries with the Most Sustainable Corporate Giants”. 

Remember BlackRock CEO Larry Fink’s letter to corporate CEOs urging them to serve a social purpose to deliver not only financial performance but also show how it makes a positive contribution to society? 

Following on that theme, Corporate Knights “2019 Global 100 Report” data and ranking of the “most sustainable corporations in the world” is presented in visualization format.

Corporate Knights scores companies on a mix of metrics after screening for those with at least US$1 billion in revenues and sufficient sustainability reporting:  resource management; employee (or human capital) management; financial management; “clean” revenue; supplier performance. 

The United States comes out at the top of the charting with 22 of the 100 companies on the list, followed by France (11), Japan (8), Finland and United Kingdom 7), and Canada (6).  No company in China or India made the list.

Of the “Top 10-star players” only one is from the USA – the REIT Prologis Inc.  Denmark has two companies; the rest are one-off listings from other countries.

Author Jenna Ross sums up: “It’s clear that sustainability is a strong differentiator in the business community.  The world’s largest – and smartest – companies are leading the charge towards a greener, more equitable future.” 

We think you’ll find the charting of this Global 100 fascinating and very useful – and there are many other clever and useful visual presentations on the web site.  Check out our Top Story for this week.

This Week’s Top Stories

Mapped: The Countries With the Most Sustainable Corporate Giants   
(Wednesday – May 08, 2019) Source: Visual Capitalist – Society is demanding that companies, both public and private, serve a social purpose. To prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society. 

Seven Compelling Corporate Sustainability Stories For You – How Entrepreneurs Are Managing Their Sustainable Business and Meeting Society’s Needs

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

How do we structure a more sustainable (and responsible) business – it’s a question we are regularly asked here at G&A Institute. By big firms and small companies — publicly-traded or privately-owned (and numerous planning to go public).

As we get into the conversation, what often becomes clear is that the company really was founded to meet some kind(s) of societal need, and sometimes it actually created a need (think of the popularity of the Apple eco-system or the early days of the Ford Motor Company and the “horseless carriage”) that it fills, benefiting society.

And in the firm’s “growing up and maturing” phase the leaders want to be recognized as a sustainable and responsible enterprise.

There are well-known corporate models that can help point the way for a management team.  We explain the successes of our “top performers and reporters” roster as examples of how the industry leaders (depending on sector and industry) have achieved clear, recognized leadership in sustainability. Their stories are inspirational as well as instructive.

(Tip:  read the companies’ GRI reports for a deep dive into corporate strategies, programs, collaborations, and achievements – our team dives into 1,500 corporate reports and more each year in our work as GRI Data Partners for the USA, UK and Republic of Ireland.)

But what about smaller enterprises, not “giants” in their industry, or niche players, run by talented entrepreneurs and managers who want to do the right thing as they build their business?  How do we find their stories?

You know, like the early story of Ben & Jerry’s (ice cream), two young guys with borrowed money operating a small store (a renovated gas station) in downtown Burlington, Vermont; the founders, Ben Cohen and Jerry Greenfield, built their business as a pioneer in social responsibility. (In 1985, the Ben & Jerry’s Foundation got 7.5% of annual pre-tax profits to fund community-oriented projects and supporting dairy family farming was a priority – like the duo’s support of Farm Aid.)

What we have for you today are the stories of seven perhaps less well-known firms briefly profiled by tech blogger Kayla Matthews in her guest commentary on the Born2Invest platform.  The quick-read profiles explain the companies’ business models and how they try to operate as sustainable enterprises.

These are: Prime Five Homes (building $1 million eco-mod homes in Los Angeles); LaCoste (marketing the well-known crocodile brand of clothing); Liberty Bottleworks (recycled water bottles); Cleancult (paving the way for more efficient detergents); Andean Collection (marketing jewelry from the rainforest and providing Ecuadorian women with jobs ); Blockchain (technology); Wash Cycle Laundry (eco-friendly local laundry service).

What is interesting is that each of the companies, the author explains, develop products and manufacturing processes that benefit employers, employees and Mother Earth by striving for and being (more) sustainable.  The stories are fascinating – and very appealing in this age of anxiety for many of us.

These stories remind us of the 2018 “Sense of Purpose” letter sent to public company CEO’s by Chairman and CEO Larry Fink, who heads the world’s largest asset manager, BlackRock. As a fiduciary, he explains, BlackRock engages with companies to drive the sustainable, long-term growth that the firm’s clients (asset owners) need to meet their goals.

And society, he explains to the CEOs receiving the letter, “…is demanding that companies, both public and private, serve a social purpose.”

To prosper over time, Mr. Fink wrote, “…every company must not only deliver financial performance but also show how it makes a positive contribution to society…without a sense of purpose, no company can achieve its full potential.”

You can read Larry Fink’s letter to corporate CEOs here – it well worth the read: https://www.blackrock.com/corporate/investor-relations/larry-fink-ceo-letter

You can follow Kayla Matthews on her tech blog, Productivity Bytes, where she often connects technology and sustainability topics: https://productivitybytes.com/

And do read our top story – it’s a fascinating and brief read to learn more about these innovative companies striving for greater sustainability and societal responsibility.

This Week’s Top Story

How 7 Eco-Friendly Businesses Are Changing The Sustainability Game
(Tuesday – September 11, 2018) Source: Born To Invest – To save the planet, it’s going to take cooperation from everyone, including both individuals and corporations. In fact, an increasing number of corporations are realizing that modern consumers are growing more environmentally…

Critical Development for CDP Responders in 2018 & 19: CDP Introduces Additional Alignment With FSB Task Force on Climate-Related Financial Disclosures Recommendations

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

Corporate ESG Data, Data, Data – it’s now everywhere and being digested, analyzed and applied to corporate equity analytics and portfolio decision-making.

Whether your public company participates in the annual round of organizing responses to the ever-more comprehensive queries from leading ESG / sustainability / CR rating agencies or not, there is a public ESG profile of your company that investors (asset owners, managers and analysts) are examining and applying to their work.

If you don’t tell the story of your firm’s progress in its sustainability journey, someone else will (and is).  And if you have not embarked on the journey yet…and there is not much to disclose and report on…you are building the wrong kind of moat for the company.  That is, one that will ever-widen and impair access to capital and affect the cost of capital.  And over time, perhaps put the company’s issues on the divestiture list for key investors.

This sounds a bit dramatic, but what is happening in the capital markets these days can be well described as a dramatic shift in focus and actions, with corporate ESG strategies, actions, programs, achievements, and disclosure becoming of paramount importance to a growing body of institutional and retail investors.

Consider these important developments:

  • The influential Barron’s editors, reaching hundreds of thousands of investors every week, beginning in Fall 2017 made coverage of corporate sustainability and sustainable investing a mainstay of the magazine’s editorial content.
  • Morningstar, the premier ranker of mutual fund performance, added sustainability to the analysis of funds and ETFs with guidance from Sustainalytics, one of the major ESG rating firms (and Morningstar made a significant investment in the firm).
  • SustainableInvest, headed  by Henry Shilling, former leader on sustainability matters for Moody’s Investor Service, noted that in 2Q 2018 as the proxy season was ending, 2018 voting was notable for the high level of “E” and “S” proposals, some achieving majority votes in shareholder voting at such firms as Anadarko Petroleum, Kinder Morgan and Range Resources.  Assets in 1,025 sustainable funds analyzed added $14 billion during 2Q and ended in June at US$286 billion; more than $1 billion was new net cash inflows, demonstrating investor interest in the products.

Significant:  according to the Harvard Law School Forum on Corporate Governance and Financial Regulations, two-thirds of investor-submitted proxy resolutions focused on having the company follow through on the 2-degrees scenario (testing) were withdrawn and company boards and managements agreed to the demand for climate risk reporting.

The FSB TCFD Impact on Corporate Sector and Financial Services Sector

The Financial Stability Board, an organization founded by the central bankers and financial leaders of the G-20 nations, created a Task Force on Climate-related Financial Disclosures (“TCFD”) to develop climate-related financial disclosures for adoption by financial services sector firms and by publicly-traded companies in general.

The 32-member Task Force, headed by Mayor Michael Bloomberg, announced financial recommendations for companies and investors in June 2017.

The essence of the recommendations:

  • Corporate boards and managements should focus on the risks and opportunities present and in the future taking into account a global temperature risk of 2-degrees Centigrade (3.5-F), and in the future, 4-C and even 6-C global temperature rises.

The risks (presented are not just to the affected companies but to the financial sector institutions investing in the company, institutions lending funds to the company, carriers insuring the company, etc.).

The risks and opportunities related to climate change should be thoroughly analyzed using the scenario testing that the company uses (an example would be projecting future pricing, regulations, technologies, and “what ifs” for an oil and gas industry company).

The company should consider in doing the scenario testing and analyzing outcomes the firm’s corporate governance policies and practices; strategies for the long-term; risk management policies and resources; establishing targets; and, putting metrics in place for measuring and managing climate risk.  Then, the next step is disclosing this to investors and other stakeholders.

Key Player:  CDP and its Wealth of Corporate, Institutional and Public Sector Data

The CDP – formerly known as the Carbon Disclosure Project – was founded almost two decades ago (2000) as a United Kingdom-based not-for-profit charity at the urging of the investment community, to gather corporate “carbon” data.

Timing:  soon after the start of meetings of the “Conference of the Parties” (or “COP”), organized by the United Nations as the Climate Change Conferences. (The “UNFCCC”.)

In the mid-1990s, the Kyoto Protocol emerged that legally-bound nations to their pledge to reduce Greenhouse Emissions (GHGs).  The U.S.A. did not sign on to the global protocol during the tenure of President George W. Bush, and the agreement reached in Paris at the COP meeting in 2015 was finally agreed to by President Barack Obama.

And then began the process of withdrawal under President Donald Trump.  The U.S.A. is now the prominent holdout (among the community of 197 nations signed on) in the global effort to address global warming before the danger point is passed.  In Paris, the COP agreed that the threshold was 2-degrees Centigrade.

Today, a growing universe of investors and many other stakeholders are increasingly focused on the role of carbon emissions in the framing of questions about what to do as scientists charted the warming of Earth’s climate.

And so — ESG / environmental data is critical to the mission of determining “what to do” and then implementing measures to address climate change challenges.

The Critical Role of CDP 

CDP over almost two decades since its founding has become the premier repository of corporate data related to climate change – with more than 6,000 companies’ data collected and shared in organized ways with the investment community.  (That includes the ESG data of half of the world’s public companies by market cap.)

The CDP emissions data focused has broadened over 16 years to now include water, supply chain, forestry (for corporates) and environmental data from more than 500 cities and some 100 states and regions available to investors.

Key user base:

  • 650-plus institutional investors with US$87 trillion in Assets Under Management.
  • Corporate Supply Chain members (such as Wal-Mart Stores) that collect data from their suppliers through CDP—a universe of 115 companies with over $3.3 trillion in combined purchasing power.

When the TCFD recommendations were being developed, CDP announced a firm commitment to align with the task force recommendations.

Following their release of the Task Force recommendations in July 2017, CDP held public consultations on a draft version of the TCFD-aligned framework. The current 2018 Climate Change questionnaire that corporations received from CDP is fully aligned with the TCFD recommendations on climate-related disclosures related to governance, risk management, strategy, and metrics and targets.

The TCFD recommendations are already aligned with the majority of CDP’s longstanding approach to climate change disclosure, including most of the recommendations for climate-related governance, strategy, risk management as well as metrics and target disclosure.

However, this year CDP has modified some questions and added new ones — the most impactful being on climate-related scenario analysis to ensure complete alignment.

Some modifications include:

The Governance section now asks for more information about oversight of climate change issues and why a company doesn’t have board-level oversight (if applicable). CDP also requests information about the main individual below the board level with the highest responsibility — and how frequently they report up to the board.

Next, in the risks and opportunities section, CDP now asks for the climate-related risk & opportunity identification, and assessment process.

As in past years, questions are posed in the Business Strategy module to allow companies to disclose whether they have acted upon integrating climate-related issues into their strategy, financial planning, and businesses.

CDP has also added a question for high impact sectors on their low carbon transition plans, so data users can gauge and further understand the sustainable and strategic foresight that these companies aim to achieve.

CDP also added a new question on scenario analysis, explaining that scenario analysis is a strategic planning tool to help an organization understand how it might perform in different future states.

A core aim of the TCFD recommendations is for companies to improve their understanding of future risks and develop suitable resilience strategies.

Finally, the TCFD recommendations highlighted five (5) sectors as the most important. In 2018, CDP rolled out sector-specific questions for the four non-financial sectors that the TCFD highlighted (they are energy, transport, materials, and agriculture).

TCFD also highlighted the financial sector – looking forward, in 2019, CDP is planning to release a financial sector-specific climate change questionnaire.

The TCFD resources for investors and corporate managers are embodied in three documents – (1) the Main Report; (2) an Implementation Annex; (3) the Technical Supplement for Scenario Analysis.  These are available at:  www.fsb-tcfd.org

G&A Institute Perspectives:

Our team has been assisting corporate managers in organizing the response to the CDP annual survey and we’ve tracked over the years the steady expansion of information requested of companies.

Our advice to companies not reporting yet:  get started!  The CDP staff members are very cooperative in assisting new corporate reporters in understanding what data are being sought (and why) and providing answers to questions.

CDP’s founding CEO Paul Simpson cautions:  “Big companies:  get better at telling those who hold the purse strings how climate risks could affect your bottom line.”

And so, our mission at G&A includes helping corporate issuers tell a better sustainability and ESG story, including the story told in the data sets communicated to 650-plus institutional investors by CDP!

CDP data is everywhere, we advise clients, including for example being part of the volumes of ESG data sets that Bloomberg LP shares on its terminals (through the terminal ESG Dashboard).

On the supply chain side, we point out that more than US$3 trillion is the collective spend of companies now addressing their supply chain sustainability factors and environmental impacts (customers see suppliers as part of their own CDP footprint).  Corporate leaders in this effort include Apple, Honda and Microsoft, CDP points out.

Resources:

CDP’s Technical Notes on the TCFD are available at: https://b8f65cb373b1b7b15feb-c70d8ead6ced550b4d987d7c03fcdd1d.ssl.cf3.rackcdn.com/cms/guidance_docs/pdfs/000/001/429/original/CDP-TCFD-technical-note.pdf?1512736184

The “A” List of CDP naming the world’s business leaders on environmental performance (160 firms) is at: https://www.cdp.net/en/scores-2017

The CDP USA Report 2017, focused on key findings on Governance, ESG and the Role of the Board of Directors is available at: https://b8f65cb373b1b7b15feb-c70d8ead6ced550b4d987d7c03fcdd1d.ssl.cf3.rackcdn.com/cms/reports/documents/000/002/891/original/CDP-US-Report-2017.pdf?1512733010

There’s an excellent interview with CDP CEO/Founder Paul Simpson at: http://www.ethicalcorp.com/disruptors-paul-simpson-atypical-activist-who-woke-c-suites-climate-risk

You can check out Henry Shilling’s SustainableInvest.com at: https://www.sustainableinvest.com/second-quarter-2018-sustainable-funds-investing-review/