Environmental Threats to Us and Mother Earth – Seven Trends to Consider…and Develop Solutions From the Forum for the Future

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

This week we are celebrating Earth Day.  The first (in 1970) observance became a catalyst for action – soon after the first of a series of environmental-focused Federal legislation began to change dirty air to cleaner and then clean, and more laws to address a very unhealthy state of affairs in the U.S.A. (The Environmental Act, Clean Water Act, Clean Air Act, RCRA, etc.). 

But…the challenges for society have not gone away. The list of “hot ESG issues” grows by the week. 

Once an ESG issue emerges and people begin to dive into the details, a range of sub-issues arises.  In this corporate proxy season we are seeing top-line issues in focus and the underlying questions that investors have as they bring their resolutions to the companies for inclusion in the broader shareholder-base voting.

Example: Where “political spending” began as a broad issue the investors moved on to ask from where the company money was being spent directly(corporate donations to political party or candidate or PAC) to now, indirectly (is the company’s money going to business industry groups that lobby against shareholder interest – which ones, addressing what issues, how much money?) 

Some environmental challenges of the 1970s are still with us (consider the continuing impact of coal-burning, the state of global plastics disposal, and questions about water treatment such as in animal husbandry and fracking). And more issues are in focus under the huge bundle we refer to as “climate change”.

The evolvement of ESG as an integrated approach for investor evaluation of companies has complicated life for many corporate managers. 

In the recent past, a large-cap would assemble the “top 10” issues list for the management team and their direct reports to address.  For 3M, as example, “highway safety” and related issues under the heading would be high on the list (the company’s important product offerings would be directly impacted by changes). 

Today, that Top 10 list is all about the materiality of the issue(s) for many investors and companies — and how those issues are being measured, managed, how risk is being addressed and opportunities seized — and then reported to stakeholders.

In many large-cap companies a broader-based team will be busily shaping ESG strategy, policy, sustainability team practices and addressing issues-associated risk management on a much wider range of topics and subtopics. 

Timothy McClimon, head of the American Express Foundation, brings us his views on seven global trends – and their relevant issues – that are impacting the sustainability movement today. (You can think about how the seven impact your organization through the 2020s, the focus of the research and perspectives shared.)

He reviews the Forum for the Future’s report in a Forbes commentary.  The report is “Driving Systems Change in Turbulent Times” – with major implications for “how” or even “if” we will be able to address current global “E” challenges.  (Are patterns of behavior, structures or mindsets shifting toward or away from sustainability?)  Consider:

First – the plastics kickback; we continue to produce and then dispose of eight million tons each year with no real change in sight. (We are adding tons of material that will go “somewhere” and have an impact on society.)

Second – Climate change and the impact on mass migration; large parts of the world are becoming less hospitable and more people will try to move to safer places. Mass migrations are ahead. Perhaps as many as 2 billion persons will be affected by climate change and migrating away from their homes.

Third – around the world, Nationalism Marches Again; this is leading to fragmentation, intolerance, competition for fewer resources… complicated by growing inequality and a range of old and new “S” issues.

Fourth – We Live in the “On-Life” – by the end of this year, half of the world’s 7-billion-plus will be online, with issues arising (mental health, social cohesion, personal interaction, privacy and security, and more).

Fifth – The Rise of Participatory Democracy; cities and states lead the way in combating rising levels of protectionism and nationalism, which may usher in a new era of more local decision-making and civic participation.

Sixth – Asia’s Changing Consumerism; China leads the way with India, Japan, South Korea and Thailand close behind in moving more people into middle class status.  But, we are losing our global capacity to sustain them as the pursue the good life.  Millennials may slow the trend in Asia (they’re more conscious consumers).

Seventh – Biodiversity is Now in Freefall; scientists see mass extinction of some plant and animal species and one-fifth of the valuable Amazon rainforest has disappeared. (Something has to give to make room for growing food to meet the needs of the growing Earth population.) Little is being done about this, say the report authors.

How can we meet these global environmental challenges – what principles can be adopted to preserve the good life so many of the citizens of Earth enjoy today?  Some are spelled out in the Top Story for you.

Author Timothy J. McClimon is president of the American Express Foundation and serves on not-for-profit boards. He also teaches at New York University and at Johns Hopkins University.

Click here for more on the Forum for the Future (not for profit).

Each of the 7 trends has a chapter devoted to the issues. 
Click here for the full report.


This Week’s Top Stories

7 Global Trends Impacting The Sustainability Movement   
(Tuesday – April 16, 2019) Source: Forbes – the Forum for the Future advances seven trends that have major implications for how (or if) we will be able to address current global environmental challenges…

When Will Sustainable Investing Be Considered to be in the Mainstream?

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

“Movements” – what comes to mind when we describe the characteristics of this term are some 20th Century examples.

The late-20th Century “environmental movement” was a segue from the older 19th and early 20th Century “conservation movement” that was jump started by President Theodore Roosevelt (#26), who in his 8 years in the Oval Office preserved some 100,000 acres of American land every work day (this before the creation of the National Parks System a decade later).

The catalysts for the comparatively rapid uptake of the environmental movement?  American rivers literally burned in the 1960’s and 1970’s (look it up – Cuyahoga River in Ohio was one).

And that was just one reason the alarm bells were going off.  New York’s Hudson River was becoming an open, moving sewer, with its once-abundant fish dying and with junk moving toward the Atlantic Ocean.  Many East Coast beaches were becoming fouled swamp lands.

One clarion call – loud & clear — for change came from the pen.  The inspired naturalist / author Rachel Carson wielded her mighty pen in writing the 1962 best-seller, “Silent Spring”. 

That book helped to catalyze the rising concerns of American citizens. 

She quickly attracted great industry criticism for sounding the alarm…but her words mobilized thousands of early activists. And they turned into the millions of the new movement.

She explained the title:  There was a strange stillness.  Where had the little birds gone? The few birds seen anywhere were moribund; they trembled violently and could not fly.”  (Hint:  the book had the poisonous aspects of the DDT pesticide at its center as the major villain.)

Americans in the 1960s were becoming more and more alarmed not only of dumping of chemical wastes into rivers and streams and drifting off to the distant oceans —

—but also of tall factory smokestacks belching forth black clouds and coal soot particles;

–of large cities frequently buried beneath great clouds of yellow smog a mile high on what were cone clear days;

–of dangerous substances making their way into foods from the yields of land and sea;

–of yes, birds dropping out of the sky, poisoned;

–of tops of evergreen and other trees on hilltops and mountains in the Northeast burned clean off by acid rain wafting in from tall utility smokestacks hundreds of miles away in the Midwest…and more. 

Scary days. For public health professionals, dangerous days.

We will soon again be celebrating Earth Day; give thanks, we are long way from that first celebration back in spring 1970. (Thank you, US Senator Gaylord Nelson of Wisconsin for creating that first Earth Day!)

Most of our days now are (as the pilots cheer) CAVU – ceiling (or clear) and visibility unlimited. 

We can breathe deep and as we exhale thank many activists for persevering and driving dramatic change and creating the modern environmental movement… and on to the sustainability movement. 

And now – is it time (or, isn’t time!) for another movement along these lines…the sustainable investing movement going mainstream? 

Experts pose the question and provide some perspectives in this week’s Top Story.

In Forbes magazine, they ask:  “Why Hasn’t Sustainable Investing Gone Viral Yet?”

Decio Fascimento, a member of Forbes Council (and chief investment officer of the Richmond Global Compass Fund) and the Forbes Finance Council address the question in their essay.

In reading this, we’re reminded that such mainstream powerhouse asset managers as BlackRock, State Street/SSgA, Vanguard Funds, TIAA-CREF, and asset owners New York State Common Fund, New York City pension funds (NYCPERS), CalPERS, CalSTRS and other capital market players have embraced sustainable investing approaches. 

But – as the authors ask:  what will it take for many more capital market players to join the movement?  There’s interesting reading for you in the Top Story – if you have thoughts on this, send them along to share with other readers in the G&A Institute universe.

Or send comments our way to supplement this blog post.


This Week’s Top Stories

Why Hasn’t Sustainable Investing Gone Viral Yet?
(Wednesday – April 10, 2019) Source: Forbes – Let’s first look at what sustainability looks like in financial terms. In sustainable investing, the ideal scenario is when you find opportunities that produce the highest returns and have the highest positive impact. 

And of further reading for those interested:

Remembering Marjory Stoneman Douglas and Her Rich Sustainability Legacy

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

As we watched the news of the tragic events at the high school in Broward County in South Florida, I wondered how many of us connected the oft-mentioned name of the high school with the woman – and her legacy – behind the institution’s name.

It’s a wonderful story to share with you: Marjory Stoneman Douglas was a valiant and heroic pioneer in so many ways on so many environmental and social issues.

She moved to Florida in 1915 from her early roots in Minnesota and New England (she was a Wellesley College grad) when the Sunshine State was in so many ways actually really a very new state. (Miami on her arrival had but several thousand residents and was a pioneer settlement).

Shortly after WW I ended there was a land boom in South Florida, with the Miami area coming alive with entrepreneurial and land and community development activity.

Some pieces of Miami land changed hands 10 times with the owner not even seeing the property “they owned.” The Miami Herald –her father was the founder and publisher — carried more classified advertising (buy my real estate!) than any other American newspaper at that time.

Marjory was born in 1890 and died in 1998 – her life spanned almost all of the 20th Century. She was an accomplished newspaper and magazine journalist, a tireless author and playwright and inspiration for female writers; an advocate for women, for civil rights, for human rights, for public health; a fighters for social justice; and a conservation leader who defended the previous Everglades eco-system for much of her life.

She moved to Miami – the new frontier of the American Atlantic coast in the early years of the 20th Century – and wrote for the city’s signature newspaper. She also wrote many short stories about this and that, for national magazines, and a run of good books. And then, in a defining moment in her life, she was invited by the Rinehart & Co. book publishing firm to contribute to the landmark series, “Rivers in America.”

(The 65 books in the series began appearing in 1937 and continued to 1974, with three publishers helming the efforts of local writers providing essays about their local rivers and the communities surrounding them.)

The editors asked her to write about the Miami River, which was not really a river at all, she cheerfully responded.

But then she began to research the ‘Glades” and there focused on the broad “wet” plains and the Biscayne Aquifer, giant Lake Okeechobee, and the role of the Kissimmee River in the fabled Everglades. The water was of the great stretch of wetlands was…well… moving…like a river.

The ‘Glades — not quite a river there, she explained to her readers, at least not like the Rio Grande or the Hudson or the Missouri and Mississippi – but it could be seen as a river of grass.

The result of her years of extensive exploration and research and working with naturalists and conservationists was her 1947 work, “The Everglades: River of Grass”.

She observed that the water did move, ever so slowly, shaping everything around it. That work awakened her interest in things conservation and environmental.

The Everglades was not just some, well, “swamp” – but a very important and vast and vital eco-system.

The Rivers series was very successful for the publishing house. I have copies of some of the book here on my bookshelf. Including River of Grass. Which has sold more than a half-million copies in the 70 years since first appearing in book stores. It is often compared to Rachel Carson’s Silent Spring in terms of impact and influence and awakening of the public conscience.

Marjory fought for many years to preserve and protect that eco-system and much of South Florida. Woe be to the “official” who stood in her way! She became known in the state as the “Grande Dame of the Everglades,” and a string of governors and other elected officials came into her crosshairs — and eventually under her sway.

I had the privilege to see Ms. Stoneman Douglas in action in Florida on several occasions. She appeared quite tiny and frail in her later days. But then she began to speak…and the sparks would fly! Her tiny voice was a megaphone for protection of the environment in Florida!

When I was an editor and publisher of Florida newsletters, magazines and management briefs, I constantly monitored the activities of the great lady, and came to appreciate the many achievements of her lifetime and way beyond (in the beneficial impacts on society today).

Today, thanks to her efforts, the Everglades National Park is a reality, saved from the relentless expansion and growth of developed areas for which Florida is nationally-known. Open space? Pave it over!

The area is also designated as a Wetland of International Significance and an International Biosphere Preserve.

We can all enjoy the Big Cypress area of the ‘Glades thanks to Marjory. Lake Okeechobee is still threatened by industrial activities but it is in much better shape than it would have been had she not joined the battle to push back on the flow of fertilizers, wastes into the lake, and other impacts that threatened this precious natural resource that helps to define Florida.

Well-Intended But In Turns Out, Boneheaded

The U.S. Army Corps of Engineers in the late-1930s and into the 1940s made a number of bone-headed decisions for “improving” the Kissimmee River flow and the effects on the Everglades. A series of floods had caused damage to newly-developed and agricultural areas, and the rising complaints by the increasing population moved government officials to “action”.

The river was “straightened out” in the 1940s and 1950s for much of it meandering course – with disastrous results. The little river flows from Lake Kissimmee, from close by to the well-visited Orlando area resorts, 100 miles south to the expanses of the Lake Okeechobee area through a wide and very flat floodplain.

This is home to a rich and wide variety of natural fauna and flora. In 1948, the Corps began building the “Central and South Florida Project” to move the river to a ditch, the C-38 Canal and installed water control facilities that…destroyed the natural river.

In 1992, the “reversal” began, restoring parts of the old natural river. The US Army Corps of Engineers splits the cost with the South Florida Water Management District – which Marjory helped to organize. (Known locally to some as “swiff-mud”.)

Marjory had strenuously pushed back on such modernization and “progress” — and won support for the restoration of the river; the project is still underway.

Marjory Stoneman Douglas High School:  The high school being named after her was in honor, we could say, of her quest for learning throughout all of her life. The Marjory Stoneman Douglas Building in the state capital (Tallahassee) is home to the offices of the Florida Department of Environmental Protection.

In her lifetime she was awarded the nation’s highest civilian honor – the Presidential Medal of Freedom – by President Bill Clinton (1993). England’s Queen Elizabeth paid her a visit. The National Wildlife Federation Hall of Fame inducted her, as did the National Women’s Hall of Fame in 2000.

When she passed in 1998 – 20 years ago at the age of 108! – President Clinton said: “Long before there was an Earth Day, Mrs. Douglas was a passionate steward or our nation’s natural resources and particularly her Florida Everglades.”

The Hall of Fame said of her book: “Her best-seller raised America’s consciousness and transformed the Florida Everglades from an area that was looked upon as a useless swamp – to be drained and developed commercially – to a national park that is seen as a valuable resource to be protected and preserved.”

And as we all know now, the scene of the February 2018 Parkland high school shooting tragedy took place at the high school named after her in 1990, during her lifetime.

Upon her passing her ashes were made part of the land – dust-returning-to-dust, to become part of the Marjory Stoneman Douglas Wilderness Area of the Everglades National Park.

And now you know more about the great lady of that name, who was a powerful voice that would very much at home in today’s sustainability movement!

She would be railing (I could picture her doing so) about global warming and the rising seas. She experienced the devastation hurricanes that ripped through South Florida in the 1920s and worried about her little house in Coconut Grove – that might be underwater at some point in the 21st Century (the restored house is a National Historic Landmark).

Her advice (according to a biographer, Mary Jo Breton in 1998): “Be a nuisance where it counts, but don’t be a bore at any time. Do your part to inform and stimulate the public to join your action. Be depressed (and she was at times in her life), discouraged and disappointed at failure but the disheartening effects of ignorance, greed, corruption and bad politics – but never give up.”

# # #

Graphic:  Wikipedia Commons

To learn more about this extraordinary woman and fighter for our environment, see the well done profile on Wikipedia: https://en.wikipedia.org/wiki/Marjory_Stoneman_Douglas

About her work, “The Everglades: River of Grass”: https://en.wikipedia.org/wiki/The_Everglades:_River_of_Grass

About The Kissimmee River restoration project: http://www.ces.fau.edu/riverwoods/kissimmee.php