Monthly Archives: November 2017

AT THE NET IMPACT CONFERENCE 2017 – PATH TO PURPOSE

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Guest Post by Laura Maio Yague, Sustainability Report Analyst, Governance & Accountability Institute

The Annual Net Impact Conference in the City of Atlanta, Georgia was held on October 26th, 27th and 28th of October and I was one of the fortunate ones to attend. This year was an exceptional event as the organization was celebrating its 25th anniversary under the banner of “Path to Purpose”.

Atlanta live tour

Atlanta welcomed us with an amazing tour “Atlanta Alive: Street Art & Social Justice Tour” during which we discovered the city art scene through its different neighborhoods.

At the same time, we learned and deepen more about its history, social movements and remarkable local figures of the Human Rights like The Rev. Dr Martin Luther King Jr. The city history of self-improvement of the city, dealing with racism and diverse social injustices made the tour the perfect starting point to get us ready for the immersion into the incredible experience that Net Impact 2017 had to offer.

“PATH TO PURPOSE” That was the main topic of this year’s annual gathering of Net Impact professionals and guest attendees.  The organizers wanted to make the audience think about what their purpose in life is, where to address the efforts and how to define our career.

The powerful idea of this year’s event was to bring together a large group of passionate students and young professionals from around the world to seek an innovative thinking to find solutions for the most pressing challenges of our time.

An intense and variety of sessions, panels, round-table discussions and activities were programmed for these three days to talk and address different issues about sustainability, environment, governance, social responsibility and social impact.

The sessions embraced topics from different fields and perspectives, ranging from technical to social aspects.   An example: Global Development, Corporate Impact, Food or Startups & Tech. The various panels targeted topics of interest for students and professionals alike. Students could participate in panels such as ‘Building Equity and Inclusion on Campus’ or sessions for One-on-One Coaching, with mentors and experimented professionals.

For those whose careers are taking off and were looking for encouragement, information on specific fields and advise, there were interesting panels which provided personal and professional guidance, such as Careers with Purpose: Building skills-based Volunteering into Any Organization, or ‘How to align Who You Are with What You Do.

The offer was very extensive, and I was really excited for attending many of the sessions.  Facing difficult choices, I finally decided to participate in the following panels:

  • Leading with the Triple Bottom line: Creating Shared Value Through Business’; this panel presented interesting stories and personal experiences of people driving CSR and sustainability forward in their companies.
  • The next wave of strategic Philanthropy and Impact investment’ analyzed the current solutions for companies to get the right financial support.

A few sessions related to food:

  • Farm to trash: Disrupting the Food Waste Epidemic
  • A Dialogue with Monsanto: Our Perspective on Food System For the Future.

Both of these sessions included activities bringing to our table a real case for which the audience was encouraged to find a sustainable solution.

  • NI17 Pitch Competition. I think this session reflected the real meaning and spirit of the conference. Young students presented ideas of either models or real businesses with a social impact. They upheld their work to convince the audience for a vote in order to get some economic resources to turn their dream into a real startup. It was a hopeful and vibrant moment.

In addition, each of the Keynote sessions united the whole audience in the big Auditorium with exceptional speakers sharing their personal experiences and stories.

Speakers shared with us how they built their impact projects related to fair trade, climate change solutions, human rights advocacy, all of them under the idea of following a purpose. They were very driven and motivating.

Derreck Kayongo presenting ‘The Global Soap Project’

I would like to make a special mention for Paul Hawken, Executive Director, Project Drawdown and Derreck Kayongo, CEO, National Center for Civil and Human Rights, for their encouraging and inspiring speeches. It is also remarkable a common point of all the speakers: their positive and resilience attitude to undertake challenges and problems in life.

Paul Hawken, presenting Project Drawdown

World of Coca-Cola Art Gallery

There was also free time to enjoy the city and its tourist attractions, such as the welcome party at the World of Coca-Cola and the Aquarium Sips Under the Sea Party.  Those were enjoyable and  really fun places which provided a cordial and relaxed climate for networking and continue meeting interesting people with common concerns and similar objectives.

Georgia Aquarium

There was a special atmosphere around the whole conference. Net Impact is the right place to elevate and bolster your career. This opportunity to share experiences with a multidisciplinary group of people with similar goals is really motivating.

Through the sessions you are able to do networking, acquire knowledge and discover new fields. It is a very enriching and fulfilling experience. I would highly recommend to anyone whose purpose is to build a society that is sustainable, equitable and fair for all. This is a good place to start to take action.

“The time is always right to do what is right.” Martin Luther King, Jr.

At the Net Impact Conference:  Governance & Accountability Research Analysts Laura at Left Mola Yague (left) and Cher Xue (right).

Laura Malo Yague was graduated from Escuela de Ingenieria y Arquitectura de la Universad de Zaragoza in Industrial Technical Engineering, Industrial Electronics with Diploma in Business Management from IE (Spain).  She recently finished an Advanced Diploma at New York University, in Monitoring and Evaluation (project management for the United Nations, governments and not-for-profits).  Laura is a Corporate Reporting Analyst with G&A Institute.

Seven Important Trends From Textile Exchange Conference Summed Up: The Industry Gets It on Sustainability

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“Sustainability is front and center in the apparel sector” — so writes Tara Donaldson in the November 5th feature story in the Sourcing Journal in covering the Textile Sustainability Conference in October. Seven major trends were discussed at the meeting of industry execs.

Considering such things as reducing microfibers polluting our oceans or using more materials with less environmental impact or other factors, the industry focus on sustainability is creating a new vision for the apparel industry, including for brands that had not yet been on board.  Because: the consumer and industry now demand this.

And there are seven trends that illustrate the paradigm shift in the industry, with details set out by the Journal for each:

Embrace of Sustainability Development Goals (SDGs) – more companies are taking a close look at how their businesses align with these, and the October conference in Washington, DC focused on exploring what SDGs mean to the apparel sector. The SDGs provide a common vocabulary for the industry.  And the manufacturing centers are taking a closer look — like China, India, Bangladesh and El Salvador.

Better raw materials in products – slowly but steadily, brands are building products with sustainable materials; the trend is up for the year, according to the 2017 Preferred Fiber & Materials Report.

Circularity/Circularity/Circularity – companies are gearing up for more circularity (circular value chains that is!), with about one-quarter of firms developing such a strategy and more than half with a strategy being implemented.  For example, making a silk-like fiber out of orange peels.

Actions on Climate – for many firms, climate change is a major issue and more than 200 companies have set carbon reduction targets. Luxury products marketer Kering Group plans to reduce carbon emissions by 50% by 2020, for example.

Leveraging Technology for Sustainability – DNA tech is one of the “big things” with the ability to provide greater transparency and traceability for fiber (the technique is using DNA-based tags embedded in raw materials such as organic cotton).

Water — Being Better Stewards – apparel companies are “water guzzlers,” with 14-plus liters to make one cotton suit (as example).  Companies are figuring out how to go “waterless” or really cut their water usage over time in the production of apparel.

Investors and Long-Term Viability – and yes, the industry leaders acknowledge that investors “are paying heed” to sustainability and long-term business viability. A Bloomberg LP analyst laid out the importance of sustainability to the conference attendees.

There’s more for you in the Top Story on the above seven major trends.  And we include in our wrap up this week another report — about investors now paying greater attention to sustainability efforts in the apparel industry.

Note:  for the Sourcing Journal – a subscription is required — a “Free” registration will allow you access to this story, with a limit of 5 articles per month.

Top Stories This Week…

The Top 7 Sustainability Trends Coming Out of Textile Exchange
(Monday – November 06, 2017) Source: Sourcing Journal – Whether it’s circularity, reducing microfibers polluting the world’s oceans or using more materials with less environmental impact, sustainability is front and center in the apparel sector, and brands that hadn’t been on board…

The 2017 Net Impact Conference – Finding Your Path to Purpose

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Guest Post by Cher Xue, Sustainability Report Analyst, Governance & Accountability Institute

The 2017 Net Impact Conference was held in Atlanta, GA, from October 26-28, 2017. The conference gathered about 2,000 students and young professionals who are committed to making a positive and lasting social and environmental impact throughout their careers.

Net Impact, headquartered in Oakland, California, is a leading global nonprofit, a global community with over 100,000 strong leaders and 300 chapters. Members are well equipped with the vital skills, experience and connections to people that will allow them to have the greatest impact — and turn their passions into a lifetime of world-changing action.

This year’s conference theme was “Path to Purpose” — and this resonated well in every session of the conference. To meet attendees’ different needs and interests, the conference offered more than 60 breakout sessions for professionals, students and faculties; these sessions are in the form of boot camps, panels and workshops.

The conference content covered a variety of different topics, including civic engagement, corporate impact, environment, equity, food, global development, social entrepreneurship, and startups & Tech. The conference also featured career advancement opportunities by organizing the on-site Expo, group mentoring and one-on-one career coaching.

One panel entitled, Leading with the Triple Bottom Line: Creating Shared Value Through Business, brought together people driving CSR and sustainability forward in their companies.

The panelists were:

  • Michael Oxman, the Managing Director of the Ray C. Anderson Center for Sustainability Business at Scheller College of Business, Georgia Tech;
  • Suzanne Fallender, Director of Corporate Responsibility at Intel;
  • Jami Buck-Vance, Director of Corporate Responsibility & Community Partnerships at Cox Enterprises; and,
  • Bruce Karas, V.P. of Environment & Sustainability at Coca-Cola North America Group.

This panel discussed details of both the challenges and solutions for corporate in social and environmental impact. The panelists shared their experience in what it takes to integrate impact metrics and values across the company. Young professionals, students, and people who would like to contribute to sustainability in their own companies found great advice for them to carry their work in the future.

Another panel –  Navigating the Clean Energy Transition  — featured:

  • Marilyn Brown, Professor at Georgia Institute of Technology;
  • Lee Ballin, Head of Sustainable Business Programs at Bloomberg;
  • John Federovitch, Senior Director of Renewable Energy & Efficiency at Walmart; and
  • Jim Hanna, Director of Datacenter Sustainability at Microsoft.

The panelists talked about how we could change the energy landscape from dependency on fossil fuels to cleaner options in an economically feasible and environmentally conscious way.

As the private sector plays a leading role in energy consumption, John Federovitch and Jim Hanna (from Walmart and Microsoft) shared their views on navigating the clean energy transition, the challenges, and future trends in Clean Energy.

Opening party at the World of Coca-Cola

In addition to panels and workshops, this year, in honor of the Net Impact’s 25th anniversary, the conference added more local networking events and excursions throughout the weekend for attendees to explore Atlanta. These included an opening party at the World of Coca-Cola, a visit to the Civil & Human Rights Museum, the panda enclosure at Atlanta Zoo, and a tour of the city’s “living walls project”.

The Atlanta city tour of street art and social justice allowed attendees to be immersed in its vibrant culture, socially conscious communities and southern charm.

Reception at the Georgia Aquarium

Atlanta is a thriving city with a history of social movements, and is the birthplace for one of the greatest Civil Rights icons, The Rev. Dr. Martin Luther King Jr.

The history of this southern city and national events influenced artists who create art in public space throughout the city with over 100 outdoor murals. The 4-hour long bus tour experience not only added welcome fun to the conference, but also allowed attendees to explore sections of town that use art as an identifier of their community, and examine how art was used to present powerful and thought-provoking messages.

Atlanta Alive: Street Art & Social Justice Tour

I found the three-day Net Impact conference in Atlanta to be a really wonderful gathering of the brightest, most enthusiastic and innovative change agents from all over the world. My participation allowed me to gain rich experience in all aspects, as well as tangible skills and actionable insights.  I am sure that participants came away feeling that the conference helped them to map out their Path to Purpose — to turn their passion into a purposeful career!

Qier “Cher” Xue is a recent graduate of Duke University, Nicholas School of the Environment.  She majored in Environmental Management with concentration in Energy.  She also earned a Certificate in Sustainable System Analysis, and worked as student consultant at Lenovo.  Her interests are in renewable energy, supply chain management and sustainability.  She’s a grad of the University of Minnesota, Twin Cities with Distinction Cum Laude Honors in Environmental Sciences, Policy and Management (B.S.).  G&A Institute is proud to have her working as Sustainable Reporting Analyst.

 

All Together Now — Industries, Sectors & Professional Groups See Collective Efforts As The Way Forward for Managing Sustainability Issues

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There is encouraging news as corporate executives, managers and a range of professionals get together to address the risks and opportunities inherent in sustainability matters that could affect a particular industry, sector or profession.   And, how with collective industry effort these challenges might be addressed.

Example:  Landscape architects gathered in Los Angeles to discuss designing (the heart of their work) in the era of challenges posted by climate change and global warming.  Consider that perhaps 70% of the Year 2050 global population will be living in urban areas.  And so, urban landscapes will need to (1) accommodate and support the greatly expanded population and (2) addressing the changing climate conditions that will complicate their work.

There is a video (2:29 minutes) posted with the report.  The graphic depictions of possible solutions with to climate change with experts’ narratives about the challenges are interesting to view.  Thought provoking.

Other examples are in three stories below. The vinyl and apparel industries efforts are highlighted, and we also provide a link to the text of a speech by the former Prime Minister of the Netherlands on the global need for new business models and consumption cycle.

All together now…forward!

Top Stories This Week…

Architects shape future cities for sustainability at LA gathering
(Monday – October 23, 2017)
Source: aljazeera.com – In Los Angeles, landscape architects have gathered to focus on sustainability and designing for an era of global warming and climate change at the 2017 American landscape architects conference.   with 3 minute video  materials (concrete) landscapes…

Changes Ahead for Corporate Sustainability Reporting

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This is a guest post by our colleague-in-sustainability, Jane DeLorenzo.  She recently completed the on-line Certificate in Corporate Responsibility & Sustainability Strategies.  The platform is hosted by G&A Institute and developed in partnership with IntegTree LLC. This is a dual credentials course!  A certificate is issued by Swain Center for Executive & Professional Education at the University of North Carolina-Wilmington and a separate certification is issued by G&A Institute.  This commentary is prepared as part of the completion of the coursework.  We are sharing it today to broaden understanding of the state-of-sustainability reporting – present and future.  Find out more about the dual certificate program here.

By Jane DeLorenzo  October 27, 2017

Now is the time for businesses and other organizations to take a closer look at their sustainability reporting; key considerations are what they report, why, how and which standards to use.

New standards released by the Global Reporting Initiative (GRI) will take effect July 1, 2018 — so the clock is ticking.

As more global companies produce sustainability reports, the process has become more complex. Competing standards and frameworks, increasing pressures from investors and other stakeholders, and the costs and resources involved to develop such reports can be challenging – and baffling to leaders.

While GRI is positioning and advocating to be the de facto global reporting standard, companies can select other frameworks, such as those of the Sustainability Accounting Standards Board (SASB) or the International Integrated Reporting Council (IIRC).

There are important factors to consider. Organizations can opt for an integrated report that includes both financial and sustainability information, or they can issue a sustainability report that is separate from the annual financial report.

Producing no sustainability report is also an option, since all three of these standards are voluntary in the United States and most other countries. Companies should be aware, though, that stakeholders may cry foul if no report is produced.

What’s a company to do?

The Continued Evolution of Reporting

Sustainability reports tell the story of an organization’s impacts on economic, environmental and social issues. Many corporations began to examine their non-financial impacts following the environmental and social movements of the 1970s in Europe and the United States.[i]

Public outcry due to rising awareness of pollution and social inequities pushed companies to try to be more transparent. Shareowners were making the case that non-financial issues can and do impact a firm’s financial performance.

In the U.S., for example, emissions data reporting was spurred by Right-to-Know legislation and rules in 1986 that required accountability from companies that were releasing toxic chemicals into the environment.[ii]

Demand for environmental and social disclosures led to the formation of GRI in 1997 by the Coalition for Environmentally Responsible Economies (now known as CERES) and the nonprofit Tellus Institute, both based in Boston. GRI later partnered with the United Nations Environment Programme (UNEP), which had been promoting voluntary environmental reporting by companies and industry groups.

At a ceremony in 2002 announcing the move of the GRI headquarters from Boston to Amsterdam in the Netherlands, UNEP Executive Director Dr. Klaus Töpfer acknowledged GRI’s mission to develop a framework for voluntary sustainability reporting.

He commented: “An increasing number of stakeholders, including the investment community, share the goal of the GRI to raise the practice of corporate sustainability reporting to the level of rigour, credibility, comparability and verifiability of financial reporting.”[iii]

GRI launched its first sustainability reporting framework in the year 2000 and subsequently developed four versions of its guidelines (G1 through G4). Keeping current was a long-term challenge for companies reporting their corporate social responsibility (CSR) efforts. Over time it became clear that a simplified, easier-to-update standard was needed. The new GRI Standards are meant to streamline and simplify the process.

As GRI marks its 20th year, the organization is attempting to “tackle the confusion among companies about the proliferation of different reporting frameworks,” according to GRI Chief Executive Tim Mohin.[iv]

While some media reports claim GRI and SASB are competing frameworks, a 2017 article in GreenBiz, co-authored by Mohin and SASB Founder/CEO Jean Rogers, intended to dispel this perception.[v] The article states: “Rather than being in competition, GRI and SASB are designed to fulfill different purposes for different audiences. For companies, it’s about choosing the right tool for the job.”

Best Practices

Using the right tool, or standard, is the key to companies producing a successful report for their target audience.

While GRI is the widely-accepted framework for reporting sustainability initiatives to a broad audience, SASB focuses on reporting to the investor audience. This audience is interested in the link between sustainability and financial performance. Both GRI and SASB agree on a common goal: to improve corporate performance on sustainability issues.

Other organizations with similar goals include a list of initials and acronyms:  IIRC, CDP, ISO, OEDC, SDG and more. These are:

  1. IIRC (International Integrated Reporting Council) promotes integrated reporting to provide “investors with the information they need to make more effective capital allocation decisions,” according to its website.[vi]
  2. CDP (formerly known as Carbon Disclosure Project) partners with organizations to measure their carbon footprint. Many companies use CDP alongside other reporting frameworks.
  3. ISO, the International Organization for Standardization developed ISO 26000 to help organizations improve their social responsibility efforts.
  4. OECD is the Organization for Economic Cooperation and Development. Its industrial economy member countries negotiate guidelines surrounding social responsibility.
  5. SDG stands for the United Nations “Sustainable Development Goals.” UN member states adopted the 17 SDGs with 169 targets that seek to protect the planet, end poverty, fight inequality and address other social injustices.

While CSR reporting has been widely voluntary, mandatory reporting is taking effect in some countries. In the European Union, large companies (more than 500 employees and certain assets and revenues) now face mandatory disclosure of environmental and social impacts beginning with their 2018 annual reports.[vii]

The EU published its own guidelines in 2017, but it allows companies to choose among the various standards. Laws requiring CSR reporting are also in effect in South Africa, China and Malaysia. Meanwhile, a growing number of stock exchanges around the world are issuing sustainability reporting guidance and requirements.

Companies that are just beginning the process to report on their sustainability impacts should find the new GRI Standards relatively simple to use. The Standards are free to download from the GRI website (www.globalreporting.org) by registering a company name and email address. Organizations can use all or some of the Standards, but they must notify GRI of their intended use.

The new Standards are made up of three modules (or manuals): (1) the Foundation, which describes the basic reporting principles; (2) General Disclosures, which outline required contextual information about an organization and how it operates; and (3) Management Approach, which requires organizations to state how they approach their selected sustainability topics or issues.

While the content and requirements are basically unchanged from the currently-used GRI G4, the Management Approach now takes center stage. A reporting company must provide information on how it “identifies, analyzes and responds to its actual and potential impacts.”[viii]

Once a company determines its approach to a key topic, this management approach might stay the same from year to year. Also, one management approach may apply to several key topics, which should make reporting more concise. The Standards include three additional modules that are organized according to topic categories: economic, social and environment.

Focusing on material (or key) topics, rather than a long list of topics, should also make the reporting process more concise as well as more meaningful to stakeholders. In other words, less is more. The new Standards direct companies to identify their key topics and then report on at least one of the topic-specific GRI disclosures.

For example, Company XYZ determines from stakeholder feedback that the topic of waste will be included in its sustainability report. Both the new GRI standards and G4 guidelines include five disclosures on waste. The new Standards require reporting on one disclosure so Company XYZ can report more in depth on this key topic.

Previously, some companies felt compelled to report on a greater number of topics and disclosures in order to be ranked favorably by rating agencies like Bloomberg or Thomson Reuters. These ratings not only can affect a company’s stock price, but they also can influence a company’s CSR strategy.

According to a 2016 study on rating agencies, about 33 percent of companies said inquiries from sustainability analysts shaped their overall business strategy.[ix]

Implications and Conclusion

Regardless of which sustainability reporting guidelines an organization chooses, the number of companies producing voluntary or mandatory reports is growing.

The process itself can give companies a clearer picture of their impacts and progress meeting their CSR targets. These insights help companies develop strategies to identify risks and opportunities within their realm of sustainability.

Because the GRI framework has been widely accepted globally, its new Standards will likely have a strong impact on the future of reporting. But it’s also likely that the leadership of corporations will continue to take a closer look at the link between sustainability and financial performance. Consequently, other frameworks that focus on both financial and non-financial impacts could gain acceptance.

GRI, SASB, IIRC and other frameworks are all driving improvements in sustainability reporting. As GRI’s Mohin explained: “In order to be more impactful, reporting needs to be concise, consistent, comparable and current. Brevity and consistency are key to successfully managing and understanding the insights delivered by the reported data.”[x]

Reporting must consider the financial bottom line if a company is to be both profitable and sustainable. What matters is that organizations need to be mindful of their reasons for reporting and how sustainability reporting can make an impact internally and externally. Honest, balanced and transparent reporting will ultimately benefit companies, their stakeholders and society-at-large.

Author:  Jane DeLorenzo is Principal of Sustainable Options, specializing in sustainability report writing and editing, and compliance with GRI reporting.

 

 

 

 

 

 

 

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The on-line Certificate in Corporate Responsibility & Sustainability Strategies provides a broad overview of key corporate responsibility challenges and strategies that will enable organizations to succeed in the 21st Century Green Economy.  The Program Developer is Nitish Singh, Ph.D., Associate Professor of International Business at the Boeing Institute of International Business at Saint Louis University with Instructor Brendan M. Keating.

Information is here:  http://learning.ga-institute.com/courses/course-v1:GovernanceandAccountabilityInstitute+CCRSS+2016/about

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References:

[i] Brockett, A. and Rezaee, Z. (2015). Corporate Sustainability: Integrating Performance and Reporting. Retrieved from https://www.safaribooksonline.com/library/view/corporate-sustainability-integrating/9781118238066/chapter02.html

[ii] Environmental Protection Agency, United States. (n.d.) Timeline of Toxics Release Inventory Milestones. Retrieved from  https://www.epa.gov/toxics-release-inventory-tri-program/timeline-toxics-release-inventory-milestones

[iii] CSRwire (2002, April 22). Global Reporting Initiative Announces Move to Amsterdam. Retrieved from http://www.csrwire.com/press_releases/15359-Global-Reporting-Initiative-Announces-Move-to-Amsterdam

[iv] GRI (2017, October 4). Q&A with GRI Chief Executive Tim Mohin. Retrieved from https://www.globalreporting.org/information/news-and-press-center/Pages/QA-with-GRI-Chief-Executive-Tim-Mohin.aspx

[v] Mohin, T. and Rogers, J. (2017, March 16). How to approach corporate sustainability reporting in 2017. Retrieved from https://www.greenbiz.com/article/how-approach-corporate-sustainability-reporting-2017

[vi] International Integrated Reporting Council. (n.d.) Why? The need for change. Retrieved from https://integratedreporting.org/why-the-need-for-change/

[vii] European Commission, Belgium. (n.d.) Non-financial reporting. Retrieved from    https://ec.europa.eu/info/business-economy-euro/company-reporting-and-auditing/company-reporting/non-financial-reporting_en

[viii] GRI (n.d.) GRI 103: Management Approach. Retrieved from https://www.globalreporting.org/standards/gri-standards-download-center/gri-103-management-approach/

[ix] Sustainable Insight Capital Management (2016 February) Who are the ESG rating agencies? Retrieved from https://www.sicm.com/docs/who-rates.pdf

[x] GRI (2017, October 4). Q&A with GRI Chief Executive Tim Mohin. Retrieved from https://www.globalreporting.org/information/news-and-press-center/Pages/QA-with-GRI-Chief-Executive-Tim-Mohin.aspx