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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

This Week’s Top Story

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

Food & Ag Sector – Sustainability is in Focus from Farm-to-Table As Companies Make Progress / Stakeholders Say “More”

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

Hey, a Cuppa Joe – the morning treat for many people around the world.  That first hot cup of dark coffee can set the tone for us for the day. And when our spirits (and energy) may lag, the cuppa joe can perk us up again for a while at any time of day.

But – how many of us give thought to how that wonderful dark liquid arrived in our grocery stores, at the local Starbucks or Dunkin’ Donuts or other local coffee counters?

The Ecologist took a close look at the business of coffee recently and their commentary (and report on the industry) is our Top Story for you this week.

The writer set out characterizing the global coffee industry as one that has been mostly “unsustainable” but lately, major coffee producers have been working to create more sustainable business models.

Guest Writer Emily Folk explains:  the coffee industry spans countries and cultures, is centuries old, and from harvesting the beans through roasting to the final retail product, the industry is recognizing public expectations about some practices – and is undergoing changes.

She ventures that “people have begun to take note and hold companies accountable” – like Starbucks – and in response, major coffee companies are making promises to do better.  But are they keeping the promise? Doing enough?

Alas, there is a lack of progress to be reported, she says.  As well as some progress to cheer about.

Starbucks according to a news report in the UK runs water 24 hours a day in the production process.  Bad practice?  The company has also been selling reusable cups and installing recycling bins at every store.  Certainly good practices.

Should the buying public pressure brand name companies like Starbucks to do more?  The writer delves into that.

It would be good to recognize that progress is being made by growers through retail food marketing companies and to be thoughtful about what is next in that company’s (and other companies’) sustainability journeys.

The G&A Institute team has been working with food and agriculture companies on various issues over many years.  This is a sector (Food & Ag) rich in traditional practices and ripe for positive change as stakeholders and consumers present their expectations for the firms to be more sustainable – and accountable to society.

Every week in the newsletter we present Food & Ag news, commentary and research content for your consideration.  There are several items in this issue on the topics.

Top Stories

Making the coffee industry sustainable
(Wednesday – May 23, 2018)
Source: The Ecologist – Sustainability is increasingly important for implementation in businesses. One of the industries that has been unsustainable since its inception is coffee. However, some major coffee producers have been working to make a more…

We’re a Long Way from NYC’s Stonewall Inn, But Still a Ways to Go for Corporate LGBT Policies, Says Investor Coalition

by Hank Boerner – Chairman, G&A Institute

We’ve come a long way since the gay & lesbian communities mobilized and began in earnest their civil rights campaigns of the 1970s and 1980s and into the1990s. It was the New York City Police Department’s wrongheaded “raid” on the Stonewall Inn in Greenwich Village neighborhood in June 1969 that provided the important spark for the long-term, winning campaign by LGBT community for equal rights and equal protection under the laws of the land. “Stonewall” became a rallying cry for the next installment of the continuing “journey” of the civil rights movement in the United States.

The 1960s/1970s were the era of civil rights protests — we were involved in or witnessed and were affected by the civil rights / voting rights movement; the counter-culture “revolution” (remember the hippies?); the drive for adoption of the ERA (Equal Rights Amendment to the Constitution); and the anti-war movement protests against the conflict in Vietnam.  These were catalysts as well for the LGBT equal rights warriors of the decades that followed the 1969 Stonewall protests.

Finally, in recent years, after years of campaigning by LGBT advocates, most states have been adopting protective measures to protect the LGBT community.  Same gender marriage is a reality in many U.S. jurisdictions.

On November 7, 2014 The New York Times carried an update — it was a “milestone year” for LGBT rights advocates, the publication explained.  Voters in the 3Ms — Maine, Maryland and Minnesota – favored same-sex marriage; the first openly-gay US Senator (Tammy Baldwin) was elected by Wisconsin voters.

Still, there was vocal and often fierce opposition to same-sex marriage and equal protection under the law for LGBT citizens.

About LGBT Policies and the US Corporate Community

Many large companies (estimate:70 companies in the S&P 500 Index to date) have adopted non-discrimination policies to protect LGBT employees in the United States, says the 2014 Corporate Equality Index (a national benchmarking tool of the Human Rights Campaign).

We see these policies and programs for inclusion described in the many sustainability and responsibility reports we examine as exclusive data partner for the Global Reporting Initiative (GRI) for the United States of America.

Still, legal protections for LGBT citizens are not sufficient in numerous US jurisdictions. “Homophobic” policies and attitudes still reign in too many US cities and states and local communities.

And policies, attitudes, practices in other countries?  Well, that’s really a problem, say sustainable & responsible investment advocates — and steps are being taken to address the situation.

The S&R investment advocacy campaign is focused on the LGBT employees of US firms working overseas.  In countries like Russia, one of the world’s largest industrial economies, which has harsh anti-LGBT policies. The US investor group points out that 79 countries consider same sex relationships illegal; 66 countries provide “some” protection at least in the workplace; and in some countries, homosexuality is punishable by death.

In a business environment that continues to globalize in every aspect, with American large-cap companies operating everywhere, the investor coalition is calling on US companies to extend their LGBT policies on anti-discrimination and equal benefits policies to employees outside the United States. A letter was sent by the coalition to about 70 large-cap companies (the signatories manage US$210 billion in assets.

Shelley Alpern, Director Social Research & Shareholder Advocacy at Clean Yield Asset Management explains: “Today, most leading U.S. corporations now have equitable policies on their books for their [American-based] LGBT employees. Ther’s a dearth of information on how many extend policies outside of the U.S. In starting this dialogue, we hope to identify best practices and start to encourage all companies to adopt them.”

The objective of the shareowner advocacy campaign is to stimulate interest in the issue and create a broad dialogue that leads to greater protection of LGBT employees of US companies operating outside of the United States.

Mari Schwartzer, coordinator of shareholder advocacy at NorthStar Asset Management compliments US firms with effective non-discrimination policies and states:  “While we are pleased that so many companies have adopted non-discrimination policies in the USA which incorporate equal protections for LGBT employees, the next phase of implementation is upon us — we must ensure that international employees are receiving equal benefits and are adequately protected.  Particularly those stationed in regions hostile to LGBT individuals…”

Signatories of the letters sent to companies include these sustainable & responsible investing advocates:  Calvert Investments; Jantz Management; Miller/Howard Investments; Office of the Comptroller of New York City; Pax World Management; Sustainability Group/Loring, Wolcott & Coolidge; Trillium Asset Management; Unitarian Universalist Association; Walden Asset Management; Zevin Asset management.

Companies contacted include:  Aetna, AIG, Allstate, Altria, Amazon, American Express, Apple, AT&T, Bank of America, Baxter, Best Buy, Boeing, Cardinal health, Caterpillar, Chevron, Cisco, Citigroup, Coca Cola, Colgate Palmolive, Costco, CVS Health, Delta, Dow Chemical, DuPoint, EMC, FedEx, Ford Motor, General Electric, General Dynamics, General Motors, Goldman Sachs, Google, HP, Home Depot, Honeywell, Human, IBM Ingram Micro, Intel, J&J, JPMorgan Chase, Lockheed Martin, McDonalds, McKesson, Merck, MetLife, Microsoft, Morgan Stanley, Oracle, PepsiCo, Pfizer, P&G, Prudential, Sears, Sprint, Starbucks, Target, Texas Instruments, United Continental, United HealthGroup, United Technologies, UPS, Verizon, Visa, Walgreen, Walt Disney, Walmart, Wellpoint, Wells Fargo.

Summing up the heart of the issue for investors (and corporate employees):  “Corporations must take the extra step to ensure consistent application of LGBT-inclusive workplace policies throughout their operations, regardless of location,” said Wendy Holding, Partner, the Sustainability Group of Loring, Wolcott & Coolidge.