Adobe recently released its most recent corporate responsibility report, which is chock full of data on where the $4.1 billion Silicon Valley software giant made headway on environmental, diversity and governance issues. The recent overall focus for Adobe, however, is on how the company believes it can make an impact on society, especially youth. Other companies in the information technology space, including SAP and Microsoft, have made massive commitments in money, resources and employees to youth employment and empowerment programs.
Adobe, however, takes a slightly different approach. To learn a more about how Adobe’s corporate responsibility stands out within an industry where a lot of progress has been made, I spoke with Michelle Crozier Yates, Adobe’s director of corporate responsibility.
More companies are changing their tone towards animal rights as organizations from the Humane Society to PETA are highlighting what is going in the products you eat and fashion you wear. The Responsible Down Standard (RDS), which has raised awareness about what is happening to geese as their down is harvested for winter apparel and bedding, is one of the more recent initiatives underway. Allied Feather & Down is currently the largest RDS-certified supplier on the market, and this year it has made several industry moves. The latest is its announcement that 10 brands are now sourcing the company’s down, including The North Face and Eddie Bauer.
Why is this important? Previous responsible sourcing efforts were opaque and did little to assuage animal rights activists who questioned the “responsible down” that companies were sourcing for everything from jackets to comforters. The new RDS guidelines, which The North Face was instrumental in drafting, are a more open process. The collection of down is not exactly the most humane process — abuses from force feeding to overcrowding were a constant complaint. With much of the world’s down supply coming from Eastern Asia and China, a global standard that could apply to factory audits anywhere and allow for seamless supply chain traceability were both needed.
For an industry that is built upon gauging and managing risks, one would think the insurance industry would be more prepared to deal with climate change’s potential effects. But the most recent annual report by Ceres shows an overall lack of preparedness in confronting climate-related risks and addressing potential opportunities. Similar to last year’s report, Ceres found some leadership amongst 300-plus U.S. insurance companies it surveyed, but still finds a lack of innovation and long term planning.
The survey found that nine insurers, or three percent of the companies that responded to the survey, earned what Ceres described as a “leading” rating. Property and casualty insurers tend to have a greater understanding about how climate change could potentially affect their business; life and health insurers lag behind. And only about 10 percent of the surveyed insurance companies have publicly disclosed risk management statements that include climate change as a significant long term risk to their businesses. The larger companies pay more attention to climate change than smaller insurers, though exceptions, such as the Catlin Group, exist.
So who are some of the leaders?
The clean energy sector has been on an economic roller coaster the past several years, but despite entrenched interests, questions about efficiency and costs, renewables are on the upswing in the U.S.
That includes solar power, which is experiencing a surge in installations large and small—witness SolarCity’s success in recent years. Of course, the regulatory environment has a lot to do with how solar is spread.
So to that end, the writers at Solar Power Rocks, a clearinghouse of solar information from rebates to technology, recently ranked the U.S. states and the District of Columbia. The top 10 solar states may just surprise you—unless you live there and you have seen what is going on in your local community.
In order to gauge the winners and laggers on the solar power front, Dan Hahn and Dave Llorens, the brains behind Solar Power Rocks (SPR), looked at a bevy of factors, including each states renewable portfolio standard (RPS), the cost of electricity, rebates and credits related to solar, tax exemptions and regulations related to grid connectivity.
SolarCity is hot on Wall Street these days, judging by the fact its stock is holding steady and the company has no problem issuing bonds for its various investments. In fact, not only was the company the first in the U.S. to sell bonds backed by rooftop solar panels, it raised over US$200 million during its third debt offering on the markets in three months. Now SolarCity is turning to crowdfunding, albeit a tightly managed program, in order to raise more funds.
The system is akin to Kickstarter or Indiegogo meeting Fidelity or Vanguard. According to SolarCity, the offer to invest in Solar Bonds is relatively simple. You open an account, deposit some money and those funds in turn offer a return from the payments from residential and commercial projects SolarCity has all over the country. Unlike the growing solar crowd-funding juggernaut Mosaic, these funds are not for specific projects; rather they are akin to a mutual fund for current and future SolarCity initiatives. So should investors jump in, or is this the Amanda Palmer crowdfunding campaign of the clean energy sector?
We spend so much time here at TriplePundit talking about how companies and universities are becoming more sustainable, it is easy to forget the sustainability agenda is going on everywhere, and yes, that includes government. To that end, more prisons are making moves to become more environmentally responsible. The latest is the Northwest State Corrections Facility in Swanton, Vermont. Recently the women’s prison, which incarcerates over 200 prisoners, announced it had become compliant with the state’s 2012 solid waste and recycling law.
Considering the depressing statistic that almost one in 100 American adults is behind bars, there is plenty of work to do on this front. From deliveries to food to water consumption, these facilities, operating 24/7 just as a small town does, provide plenty of opportunities to reduce waste and save money. Washington State, for example, partners with one of its state universities to implement recycling and sustainability programs within its correctional facilities. So what exactly is going on in this corner of New England?
It was not long ago that the chief sustainability officer—or whatever title that person or committee tucked into their email signature—was often someone on the outside looking in. For many companies, appointing a CSO was done to assuage some stakeholders with corporate social responsibility projects. That officer was also charged with giving a public face to the company’s efforts related to their sustainability agenda. But recent trends show that oft-heard complaint is less and less true. We see more companies, from the logistics sector to snack manufacturers, appointing a CSO, and one who has a role with teeth to get things done. They are increasing involved in day-to-day decision making within the C-suite, and their numbers are increasing annually. Now a report from the Weinreb Group shows the role of the CSO has matured even more the past few years.
And what is the biggest shift underway? These CSOs are no longer simply internal program managers—they, in the report’s words, are “strategic lynchpins” who are integral to a company’s overall strategy, often identify new opportunities for innovation and lead impactful strategic initiatives from within and outside the company.
General Motors (GM) continues to expand its global zero-waste program, inching closer to its goal of having 125 total facilities landfill-free by 2020. Eleven new facilities are now officially zero waste, and they range from assembly plants to regional headquarters. Following its own mantra of “reduce, reuse, recycle and compost,” GM has expanded this program to 122 facilities — over half of them outside of North America.
According to GM, the conversion of these factories and offices to landfill-free status helps the automaker prevent more than 600,000 tons of carbon emissions from entering the atmosphere annually. At last count, the company estimates that 97 percent of all waste at its landfill-free plants is recycled or reused; the remainder is converted into energy within the plants.
The amount of waste GM recycles hardly is small change: The company in the past has estimated that it generates about US$1 billion in revenues from raw materials that do not end up going into cars. Three years running, GM’s zero-waste plan is a solid example of a company rolling out sustainability goals — and actually meeting them.
Last week the American Petroleum Institute (API) was sued for trademark infringement by Choose Energy, Inc. For 10 years, San Francisco-based Choose Energy has been operating an online marketplace that allows consumers to compare home and business power options from natural gas to solar. In a lawsuit filed last week in a California federal court, Choose Energy, which operates the website ChooseEnergy.com, accuses the API’s launch of ChooseEnergy.org of confusing consumers and harming the company’s goodwill, or in layman’s terms, the company’s reputation and therefore its customers’ confidence.
The suit claims API’s site has confused Choose Energy’s potential customers, especially those who contact the firm through its chat interface, call center and via social media interaction on the Choose Energy’s Twitter account. The bulk of Choose Energy’s business is from working as a broker offering various energy options in the 10 states and the District of Columbia that have deregulated energy markets. So, API’s launch, the company insists, is having an adverse impact on its business. Considering API’s past use of fake Twitter accounts and litigation over renewable energy regulations in the past, this may not be too big a surprise to observers.
Kansas is a political mess right now, and its leaders have hardly been hospitable to sustainable development, but a new biofuels project underway, close to the border with the Oklahoma panhandle, shows that new clean energy technologies do have a future. This morning the Department of Energy and the Spanish multinational Abengoa are officially kicking off the company’s first commercial-scale biorefinery in Hugoton. Once known as Kansas’s natural gas capital, this town of 4,000 may very well become known as the catalyst for next-gen biofuels, such as cellulosic ethanol, finally scaling and becoming cost-competitive with other fuels.
So why would a €7.8 billion (US$10 billion) company be bothered with this corner of the prairies? A conversation I had with Chris Standlee, Abengoa’s executive vice president of global affairs, shed some light on the future of cellulosic alcohol—which could finally play a role in diversifying our country’s energy portfolio, reduce carbon emissions and generate revenue for farmers. According to Standlee, Albengoa’s investment in the Hugoton plant reflects the company’s confidence that cellulosic alcohol is finally becoming a more cost effective option.
India’s fifth largest city, Bangalore, deserves much of the credit and attention for India’s economic transformation the past 20 years. Home to massive information technology companies including Wipro and Infosys, the Bangalore metropolitan area contributes as much as one-third of India’s IT exports. Many global companies, including SAP, have long set up shop in Bangalore. Many of the technologies that are part of the foundation of the “smart cities” movement underway worldwide have a base in Bangalore.
But as in the case of other cities throughout India, being stuck in traffic gives the feeling one is anywhere but a “smart city.” The frustration in Bangalore is nothing new. An annual report by IBM ranked Bangalore highly in its 2011 “Commuter Pain Survey.” This city of eight million was lodged between Johannesburg and New Delhi, and faring worse than other cities notorious for snarled traffic, including Buenos Aires and Los Angeles. The impacts on local quality of life are all over the map, such as when ambulances take hours to move patients only a few kilometers across town to emergency rooms. But the toll Bangalore’s traffic has on workers gives cities a lesson on why cities have got develop more robust transportation plans in a crowded world: Quartz estimates the annual cost to local IT and business process outsourcing (BPO) companies to reach as much as US$6.5 billion annually. Considering the average salary of an IT or BPO employee in India, that sum is staggering.
Enterprise risk management (ERM) has long been a growing priority of corporate executives and boards — not a surprise since political, economic and social change can occur quickly. But a study issued by the business reporting firm Workiva suggests sustainability-related risks should be part of a company’s core ERM analysis. Climate is an obvious reason, as many businesses learned after Hurricane Sandy two years ago. But other factors, from supply chain management to confronting water scarcity, are behind why the study’s authors insist businesses need to take sustainability seriously if they are to remain viable for the long term.
Sustainability is more than highlighting environmental and social risks, however. The Workiva report insists that in order for sustainability to be part and parcel of a company’s risk management plan, buy-in has got to start at the top, board- and executive-level, with a solid corporate governance structure. And before those groans start coming out of the boardroom, it’s important to remember that many reports already out there prove that a company focused on being sustainable and socially responsible is one that also enjoys an improved financial performance.
But how should sustainability-related challenges be implemented and monitored?
I only got 10 likes in the last five minutes
Do you think I should take it down?
Let me take another selfie. . .
–“#Selfie,” by the Chainsmokers
Most of us who live on social media know that companies such as Instagram allow you to use their services on the condition that they can use your services, royalty-free, without any notification.
That was one reason why I avoided using Instagram at first, although almost 6,500 photos later, I got over those privacy concerns pretty quickly. Not that anyone would want to use photos of my dog, my dome smooshed into a bike helmet, or me doing a yoga backbend in front of the Taj Mahal. Maybe. But I also do not pose for selfies brandishing my middle finger, with my tongue wagging out, or passed out buried in a pile of empty Corona bottles (I only drink local or organic brews). Triple Pundit doesn’t need the embarrassment, nor do any of my business clients. But for those of you that love to post pics of your shopping expeditions or favorite junk foods, be aware: Your selfie could very well be dissected and analyzed by the digital marketing startup Ditto.
One of the more welcome trends in recent years is the increase in partnerships between NGOs and businesses to work on sustainability challenges. The nonprofit has the expertise and capacity to work on issues from water to land rights; companies in turn have the funds, technology or brand recognition that can help raise awareness and scale these programs. One of the latest high-profile partnerships is between Unilever and the World Resources Institute (WRI), which have worked together to further a much needed agenda: increase transparency in agricultural supply chains to stall the pace of deforestation.
WRI has long included deforestation within its body of work, which makes it a natural fit to partner with a company such as Unilever, which uses palm oil in many of its products. And the growing demand for palm oil over the past decade is one of the major factors behind global deforestation. Despite growing awareness about deforestation’s catastrophic effects, the felling of trees, mostly to create farms and pastureland, continues. In fact, University of Maryland study suggests the rate of forests lost between 2010 and 2012 was the equivalent about 50 soccer fields every minute of every day — over a span of 12 years. Last month’s Climate Summit in New York resulted in a pledge to restore 350 million hectares of forest worldwide by 2030, a massive undertaking considering that landmass is about the size of India. So, can the Unilever-WRI alliance help?
If plant-based protein becomes the norm — and meat production becomes only a minor, not major, contributor to the world’s problems coming from carbon emissions and pollution — then much of the credit should go to Stanford University researcher Patrick Brown. The professor of biochemistry, who has spent much of his career on genetic research, has taken on a new quest: finding alternatives to animal farming. And one of his ideas is a plant-based hamburger that oozes out blood like the real thing.
His brainchild is Impossible Foods, a Redwood City, California startup that has scored $75 million in venture capital funding, according to the Wall Street Journal. The company is developing fake cheeses and meats, including his beef substitute that uses plant-based molecules to recreate a more environmentally friendly, and humane, alternative to steak and hamburger. In his quest to change how we eat, and put a dent in the global meat industry, he is focusing on the environmental argument while trying to develop a product that has the taste and texture of the real thing — eschewing the emotional and ethical arguments typical of the anti-meat crowd.