The U.S. still struggles to shake off its stubborn racial wealth gap, one that is most apparent when contrasting the total amount of assets owned by Black and white families. On average, Black families across the U.S. have only <a href="https://www.mckinsey.com/featured-insights/diversity-and-inclusion/the-economic-state-of-Black-america-what-is-and-what-could-be" target="_blank">one-eighth the wealth</a> when compared to white families, and that gap has actually <a href="https://www.cnbc.com/2020/06/17/wealth-inequality-black-families-90-percent-less-wealth-than-white-families-united-states.html" target="_blank">widened</a> in recent years. Meanwhile, it has been an ongoing challenge for leaders who support and fund programs that could boost Black families’ ability to build intergenerational wealth. The problem? Much of the data available that could help address this wealth disparity is incomplete or long outdated. 

The <a href="https://www.theatlantic.com/education/archive/2018/07/black-white-wealth-gap-inheritance/565640/" target="_blank">impacts</a> of the racial wealth gap in the U.S. are <a href="https://www.triplepundit.com/story/2020/black-families-intergenerational-wealth-gap/707026" target="_blank">devastating</a>. To start, family wealth provides economic cushions at times of need. Having that access to cash (or even a home equity line) can help a family through a rough economic patch. Wealth allows for investments in real estate and passive income streams such as equities, and the availability of such funds can pay for a child’s education or unexpected medical bills without turning to burdensome loans.

To that end, the nonprofit <a href="https://prosperitynow.org/" target="_blank">Prosperity Now</a> has launched a partnership with Bloomberg Philanthropies’ <a href="https://www.bloomberg.org/founders-projects/the-greenwood-initiative/" target="_blank">Greenwood Initiative</a>, a program focused on building wealth for Black families while taking on the lack of investment in Black communities throughout the U.S.

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Key to this partnership is the <a href="https://blackwealthdata.org/" target="_blank">Black Wealth Data Center</a> (BWDC), an initiative that seeks to narrow the racial wealth gap by providing relevant, nonpartisan, evidence-based information to policymakers and other leaders who are determined to design programs that could improve racial equity.

Plans for the BWDC includes the <a href="https://blackwealthdata.org/explore/intro" target="_blank">hosting of data sets</a> with information on assets, debt, education, employment, home ownership and business ownership. With strong, relevant and reliable data, the BWDC can function as a resource for advocates and leaders to build better and evidence-based policymaking and investment choices — thereby chipping away at the wealth gap lingering across U.S. states and local communities.

“At Prosperity Now, we know firsthand that reversing centuries of economic inequities takes intentional, coordinated efforts aimed at dismantling structures that exclude people and rebuilding our economy from the ground up," Gary Cunningham, CEO and president of Prosperity Now, told TriplePundit in an email. "The BWDC underscores the importance of democratizing data, because the most effective solutions come from those most closely impacted by injustice. The Black Wealth Data Center is a significant advance for the field as it will help us unearth new ways to build wealth in Black families and ensure that we are using the most robust information and tools to create programs and policies that drive toward racial wealth equity,”

Image credit: <a href="https://www.pexels.com/photo/family-having-dinner-and-celebrating-4262173/" target="_blank">August de Richelieu</a> via Pexels

New Data Center Offers Policymakers the Tools to Bridge the U.S. Wealth Gap

Just a few months ago, the 2022 midterm elections were shaping up as a classic battle between the usual conventions of Republican and Democratic politics. However, the “capitalism-versus-socialism” formula long favored by the right has shifted in recent weeks. The battleground has now moved on to the nature of corporate citizenship itself. House Republicans' new “Commitment to America” agenda, which <a href="https://www.esquire.com/news-politics/politics/a41341631/kevin-mccarthy-agenda-leak/" target="_blank">leaked</a> ahead of its planned release last week, aims to attract Republican voters partly by stripping the ESG and corporate social responsibility models down to their bones.

<h2>ESG and DEI programs are the targets</h2>

One leading element of the corporate social responsibility model is ESG (environmental, social and governance) investing, in which financial institutions <a href="https://www.triplepundit.com/story/2022/esg-reporting-disney/745516" target="_blank">gravitate toward businesses</a> that demonstrate an ability to manage risks and opportunities in the era of climate change and social progress in the U.S. and globally.

Another important feature consists of corporate DEI (diversity, equity and inclusion) programs. Through DEI programs, business leaders recognize that bottom-line benefits follow a workforce that reflects the diverse experiences of U.S. workers, executives, customers and clients, <a href="https://www.triplepundit.com/story/2021/dei-challenge-office/730366" target="_blank">along with communities</a> beyond the office walls.

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The corporate social responsibility model does many things, but there is one thing it clearly does not do. It does not support a political party that has elevated the politics of race and gender supremacy to the highest level of elected office in the U.S. Partisan, ad hominem attacks on ESG and DEI programs were all but certain to increase after former President Donald Trump was elected to office in 2016, and they did.

<h2>A clear line from former President Trump to the 2022 midterms</h2>

Former President Trump won election in 2016 <a href="https://www.triplepundit.com/story/2020/ashes-trump-presidency/707891" target="_blank">by appealing to white supremacists</a>. He continued to govern from that platform after taking office, especially through immigration policies that <a href="https://www.triplepundit.com/story/2017/97-top-tech-companies-line-against-trump/19896" target="_blank">challenged business leaders</a> to stand up for Muslims and other minorities. Trump also began to bolster white domestic terrorist organizations with the support of the presidency, setting the stage for dozens of murders <a href="https://www.adl.org/blog/two-years-ago-they-marched-in-charlottesville-where-are-they-now" target="_blank">attributed to racial hatred</a> over the next two years and, ultimately, <a href="https://www.triplepundit.com/story/2021/corporations-bloodless-coup/724596" target="_blank">the violent insurrection of Jan. 6, 2021</a>.

As the 2020 campaign season approached the crucial months of September and October, Trump also took aim more specifically at the corporate social responsibility movement, leading his party in a charge <a href="https://www.triplepundit.com/story/2020/diversity-training-red-scare/706151" target="_blank">against diversity training</a>.

That strategy failed, but Trump continues to hold a firm grip on the Republican Party.

His <a href="https://www.triplepundit.com/story/2022/red-alert-pride-month-attacks/747801" target="_blank">influence on white supremacist organizations</a> also continues to ripple out in state and local politics, taking a variety of forms that undermine ESG and DEI principles. Some examples are the <a href="https://www.triplepundit.com/story/2021/corporations-federal-lgbtq-rights/722111" target="_blank">legally sanctioned harassment of LGBTQ children and their families</a>, book bans that focus on minority, LGBTQ and women authors, the fostering of a false scare over the <a href="https://www.triplepundit.com/story/2021/critical-race-theory-alec/725786" target="_blank">teaching of critical race theory</a>, and the amplification of <a href="https://www.triplepundit.com/story/2022/texas-blackrock-fossil-energy/754656" target="_blank">the “woke capitalism” canard</a> against a prominent Jewish financier. 

Considering the connection between <a href="https://www.triplepundit.com/story/2022/dei-bystander-effect-court-stacking/744056" target="_blank">misogyny and white supremacist politics</a>, it is also no surprise that Republican-led states jumped on the opportunity to impose new restrictions on abortion following the decision of the U.S. Supreme Court in the Dobbs case. Millions of U.S. women now find <a href="https://www.triplepundit.com/story/2022/dobbs-pregnant-people/750141" target="_blank">their health and safety in jeopardy</a>, and may face legal consequences along with their employers and health workers, after the Dobbs decision upended 50 years of protections for pregnant and pregnancy-capable people.

<h2>Corporate leaders need to look in the mirror</h2>

These existential threats to the corporate social responsibility model are at least <a href="https://www.triplepundit.com/story/2022/abortion-business-leaders/749556" target="_blank">partly the fault of business leaders</a> who have provided financial support to extremist candidates over the years.

Corporate support for right wing “bill mills” like the National Rifle Association and the American Legislative Exchange Council has withered over the years. However, <a href="https://www.citizensforethics.org/reports-investigations/crew-reports/promises-kept-the-companies-not-funding-sedition/" target="_blank">even after the failed insurrection</a> of Jan. 6, <a href="https://www.triplepundit.com/story/2021/pride-month-political-donations/724241" target="_blank">some U.S. corporations </a>have continued to <a href="https://www.triplepundit.com/story/2022/obbying-full-pride-month/746486" target="_blank">provide funds to</a> Republican candidates and office holders who appeal to misogynists and white supremacists.

Last week, for example, independent journalist Judd Legum reported that AT&amp;T, Google and Cigna were among the corporations providing funds to members of Congress <a href="https://popular.info/p/these-corporations-are-backing-the" target="_blank">who support a national abortion ban</a>, alongside Home Depot, Koch Industries and more than three dozen others.

<h2>‘Commitment to America:’ The call is coming from inside the house</h2>

Corporate support for Republican office holders has come back to bite them long after Trump lost the 2020 election, and they are badly mistaken if they think this chapter in U.S. political history is closed.

Leading Republicans in Congress made that clear earlier this month, when U.S. Sen. Lindsay Graham (R-S.C.) laid the groundwork for a <a href="https://www.forbes.com/sites/alisondurkee/2022/09/13/lindsey-graham-introduces-national-abortion-ban-heres-what-it-would-do/?sh=5f1fbba26796" target="_blank">national abortion ban</a>. House Minority Leader Kevin McCarthy (R-Calif.) followed up last week with the introduction of his party’s new “Commitment to America” platform.

It is easy to make fun of McCarthy’s media rollout, which <a href="https://www.esquire.com/news-politics/politics/a41357812/kevin-mccarthy-commitment-to-america/" target="_blank">featured a fake quote</a> attributed to Abraham Lincoln along with stock images from a Russian website. However, there is nothing funny about the document. It is a summary of the key legal and rhetorical daggers thrown against corporate social responsibility over the past two years, couched in the conventional language of Republican politics.

<h2>The 'Commitment to America' and the QAnon conspiracy</h2>

In fact, the Commitment to America agenda includes lines that echo the wild ramblings of the off-the-rails but influential QAnon conspiracy theory. That is probably no accident. QAnon began to merge with support for the former president during his time in office. The connection was evident in the Jan. 6 insurrection. In recent weeks, Trump himself has drawn QAnon followers <a href="https://www.cnn.com/2022/09/21/politics/qanon-fans-donald-trump/index.html" target="_blank">more aggressively</a> into his circle of influence, and by extension, the Republican Party.

QAnon’s depiction of an elite group that exercises behind-the-scene control over world affairs dovetails neatly with the Commitment to America. Through that lens, the Commitment to America is nothing more than a dressed-up version of QAnon conspiracies, hiding behind a generous helping of the usual economic conservatism and law-and-order <a href="https://twitter.com/metzgov/status/1572649572744429568?s=20&amp;t=25fFyh_HUkwM7alO3Stl9w" target="_blank">conventions of Republican policies</a>.

The official <a href="https://twitter.com/metzgov/status/1572649572744429568?s=20&amp;t=25fFyh_HUkwM7alO3Stl9w" target="_blank">one-page version of the document</a> (available on Twitter and elsewhere) is front-loaded with a long list of items that reflect at least nominally conventional Republican policies. However, those who continue reading past the first two sections will find echoes of the QAnon appeal under the third heading, “A Future That’s Built on Freedom.”

By freedom, they mean freedom from the tenets of ESG investing, corporate DEI programs, and laws that protect minorities, women and the LGBTQ community from repression. The “Freedom” section includes a validation of extremists who have been disrupting school board meetings, advocating for book bans and seeking to censor lessons that fail to meet the white supremacist platform, with these words: “Advance the Parents’ <a href="https://www.republicanleader.gov/parents-bill-of-rights/" target="_blank">Bill of Rights</a>…and expand parental choice so over a million more students can receive the education their parents know is best.”

Another item validates the anti-transgender movement with these words: “Defend fairness by ensuring that only women can compete in women’s sports.” Another item covers the entire gamut of racism and misogyny as expressed in abortion bans, hate speech and white supremacy, with these words: “Uphold free speech, protect the lives of unborn children and their mothers, guarantee religious freedom, and safeguard the Second Amendment.” Still another item validates election deniers, including those seeking to disrupt local elections offices, with these words: “…increase accountability in the election process through voter ID, accurate voter rolls, and observer access.”

The Commitment to America also promises to “stop companies from putting politics ahead of people,” which apparently covers the entirety of the corporate social responsibility movement.

The fierce blowback against the new abortion bans could ultimately help swing the needle against extremism on Election Day.

However, business leaders would be wise not to sit by while advocates for the principles of corporate citizenship and ESG do all the heavy lifting. Their votes might not be enough.

Don’t say you weren’t warned.

Image credit: <a href="https://unsplash.com/photos/Os2kIaebMW8" target="_blank">Alejandro Barba</a> via Unsplash

The ESG Movement Has the Numbers, But ‘Commitment to America’ Might Have the Voters

As a new school season kicks off, educators, students, parents and schools are still battling the effects of the coronavirus pandemic. 

Teachers are being stretched thread-thin as they push to cope with a large number of students who are behind academically and struggling with challenges such as mental health issues and food insecurity. The rising cost of goods is putting further strain on families, with 40 percent of respondents in a recent survey saying they’re <a href="https://www.adweek.com/commerce/inflation-back-to-school-shopping-budgets/" target="_blank">stressed about the money they will spend</a> on back-to-school shopping — up from 28 percent in 2021. 

To take stock of the present need, <a href="https://www.adoptaclassroom.org/" target="_blank">AdoptAClassroom.org</a> <a href="https://www.adoptaclassroom.org/2022/04/12/state-of-teaching-statistics-2022/" target="_blank">surveyed</a> 4,665 teachers who instruct students from pre-Kindergarten through high school at public, private and charter schools. Not surprisingly, teachers reported shouldering more responsibilities and relying more on their own resources to meet students’ needs.

Eighty-one percent of teachers reported a heavier workload during the last school year, while 80 percent said they were spending more time addressing students’ mental health needs. Another 71 percent reported spending more of their own money on supplies for their classrooms, and 69 percent said they were devoting more time to helping students catch up academically. 

<h2>Teachers increasingly shoulder emotional and financial burdens in the classroom, but businesses can help</h2>

Studies have shown that about 96 percent of teachers purchase supplies for their students, spending an average of $750 annually. Because of academic deficits tied to the pandemic, 78 percent of teachers reported needing more classroom supplies.

The pandemic also continues to take its toll on families, and 92 percent of classrooms have students whose parents cannot afford to purchase school supplies, according to AdoptAClassroom.org’s study.

The Minnesota nonprofit has been providing funding for school supplies to classrooms and families in need since 1998. <a href="https://www.triplepundit.com/story/2021/return-school-pandemic/727466" target="_blank">Educators</a> can register on AdoptAClassroom.org’s website and receive funding in several ways: through individual donations, crowdfunding, corporate sponsor donations or by applying for AdoptaClassroom.org’s Spotlight funds. 

As teachers face continued challenges, more companies are responding to those needs by strengthening their relationships with AdoptAClassroom.org. 

In particular, Subaru of America, Inc. and its retailers across the U.S. “adopted” classrooms at schools in their communities and provided supplies, as well as flexible funding in the form of credits to be spent on the AdoptAClassroom.org marketplace, supporting learning resources. Subaru is the largest corporate supporter of AdoptAClassroom.org. The automaker and its retailers have provided supplies to more than 300,000 students nationwide since 2021 as part of the <a href="https://www.subaru.com/learning" target="_blank">Subaru Loves Learning initiative</a>, and they continue to expand their participation. <a href="https://www.triplepundit.com/story/2021/return-school-pandemic/727466" target="_blank">More than 600 Subaru retailers</a> partnered with high-need schools in their local communities this year. 

In just one of many examples, <a href="https://www.baldwinsubaru.com/" target="_blank">Baldwin Subaru</a> of Covington, Louisiana, has taken <a href="https://pineviewmiddle.stpsb.org" target="_blank">Pine View Middle School</a> under its wing and last year began providing flexible funding in the form of credits to the AdoptAClassroom.org marketplace, resources and volunteer hours to the school, including $10,000 which was used to buy seating for students with disabilities.
<figure role="group"><img alt="AAC Subaru Lovs Learning students at Hopkins HS-10" data-entity-type="file" data-entity-uuid="ca14688f-c836-4c60-a71c-a3970e97f96c" src="https://back.3blmedia.com/sites/default/files/inline-images/AAC%20Subaru%20Lovs%20Learning%20students%20at%20Hopkins%20HS-10.png" /><figcaption>Subaru is the largest corporate supporter of AdoptAClassroom.org. </figcaption></figure><h2>In Covington, Louisiana, a local business helps a public middle school weather tough times</h2>

The only public middle school in the area, Pine View serves all of the surrounding elementary schools, which means it has a highly diverse population. Like most of the schools in the AdoptAClassroom.org program, Pine View is a high-needs school, based on the number of students who receive free and reduced-priced lunches. 

While the school says it does have resources to support students' emotional and academic needs, its staff can always use more help. There is a full-time mental health provider and guidance counselor on staff, as well as 20 before- and after-school extracurricular activities in which students can participate, as noted by Dr. Seu Hee Ledet, principal of Pine View Middle School.

“They can feel a sense of belonging that helps with their socialization, connectedness and mental health,” Dr. Ledet said. “We address academic deficits with targeted daily interventions using student data and student work.”

Recently, Baldwin Subaru employees and members of the community held a “beautification day” at Pine View, painting the school’s exterior doors, basketball court, and the exterior of the building that surrounds the playground area. They also planted flowers around the area and donated basketballs. 

“The basketball court was in rough shape, so we removed the grass from the court and replaced the backboards with new netting,” said Lindsey Rose, marketing director of Baldwin Subaru. The dealership plans to continue to work with the school for future facility updates and donate needed playground equipment. 

“We loved working with this school so much and saw that they really needed the funds, so we increased the donation and activities for this year,” Rose continued. “In May, we also visited the school with our mobile service van and provided free multi-point inspections, fluid top-offs, oil changes, and inflated tires for all of the teachers and staff.”

Baldwin also plans to donate an additional 25 classroom supply kits to the school. “These kits were curated by AdoptAClassroom.org and Subaru by reviewing national purchasing data of the most in-demand and commonly used supplies,” Rose said. The kits will include items such as pencils, pens, disinfecting wipes, sticky notes, highlighters, dry erase markers and erasers.

Pine View Middle staff members say they’re grateful for the partnership. “Dr. Ledet specifically has been extremely accommodating and open to all the ideas that we have presented to her,” Rose said. “However, we have received the most feedback from the community. Since we started working with Pine View, we have had multiple customers tell us that they choose to purchase a car or service their vehicle with us because of the support that we have provided to the school.” 

“Our staff loves positive feedback and the publicity about the hard work they are doing and any partnership,” Dr. Ledet added.  “They are thrilled for another year’s sponsorship.”  

The Subaru philosophy is that partnerships such as these should not be viewed as going above and beyond, but as the norm. Retailers must start by providing support within their own cities and towns, Rose said. “Any business, local or national, that opens its doors in our community should take responsibility for helping the community that we live and work in grow and flourish,” she said. “This is part of the Subaru Love Promise and how Subaru gives back, simply because it is the right thing to do, and makes Subaru More Than a Car Company.”

This article series is sponsored by Subaru and produced by the TriplePundit editorial team. 

Images courtesy of Subaru of America, Inc.

Schools Still Face Impacts From the Pandemic, But Businesses Can Help

With widespread labor shortages across the U.S., more businesses are feeling the pressure to improve their environmental, social and corporate governance (ESG) policies. With Generation Z emerging as the new generation of workers, and a <a href="https://www2.deloitte.com/content/dam/Deloitte/global/Documents/2021-deloitte-global-millennial-survey-report.pdf" target="_blank">recent report</a> conducted by Deloitte revealed that 60 percent of Gen Z employees are concerned that current leaders in business are not focused enough on protecting the environment. These young workers are looking for employers who can demonstrate their commitment to combating the issues impacting our world.

Gen Z is becoming the <a href="https://www2.deloitte.com/us/en/pages/consumer-business/articles/understanding-generation-z-in-the-workplace.html" target="_blank">most populous and most diverse generation</a> on the planet, which makes it important for companies to consider how they can become an employer of choice. This new generation <a href="https://www.nytimes.com/2022/07/31/business/gen-z-jobs.html?referringSource=articleShare" target="_blank">prioritizes</a> mental health, flexibility and meaningful action on climate change. 

According to <a href="https://www.diligent.com/" target="_blank">Diligent</a>, which provides software to simplify corporate governance, getting the right people on board means starting with your ESG commitments. “Employers can prioritize engagement by driving transparency and confidence, and ensuring employees have the information and resources required for them to succeed in their roles,” Diligent’s chief people officer, Avigail Dadone, told TriplePundit. She suggests that this type of engagement allows employees to connect to a company’s mission and commit to shared goals. Some examples that Diligent implements include a goal management platform, an onboarding program to engage new starters for three months, and several employee-led programs and resource groups to focus on peer support and inclusivity in the workplace. 

Beyond creating a symbiotic work environment, “Employees and prospective talent are drawn toward ethical companies and want to know how an organization is giving back to the planet and their communities” Dadone noted. Because ESG is still new, there is a lack of clarity around defining and measuring it, which can lead to greenwashing. Companies are challenged to positively present their ESG initiatives in the recruitment process, but without evidence and accuracy, it’s difficult to back up, she added. 

It's also necessary to conduct proper risk management for any ESG-related initiatives. Dadone discussed how companies benefit by adopting precise systems that establish a standard of success, then tracking how well they measure up to their goals to keep them accountable. Stakeholders and prospective employees are concerned with sustainable and ethical business practices; therefore, staying on top of ESG reporting keeps companies competitive. Diligent <a href="https://www.diligent.com/carbon-accounting/" target="_blank">offers ESG management tools</a>, which the organization said are able to help businesses navigate their ESG journeys in a way that is meaningful to them and their stakeholders. 

In today’s business and regulatory landscape, ESG strategy is more of a need-to-have than a nice-to-have, Dadone said. Earlier this year the U.S. Securities and Exchange Commission (SEC) <a href="https://www.sec.gov/news/press-release/2022-46" target="_blank">proposed rules</a> that <a href="https://www.triplepundit.com/story/2022/sec-proposed-climate-related-disclosures/751891" target="_blank">require public companies to disclose</a> how climate change risks affect their business and provide more information on their impact on the environment. The implications of these rule changes indicate that failure to meet ESG requirements can result in not only reputational risk, but regulatory, operational and financial risk as well. 

Recent years have highlighted the pressing issue of climate change. With wildfires and extreme temperature conditions, Gen Z is awake to this crisis. Their choices are influenced by climate change risks, and where to seek employment is among those choices. Companies with quality ESG initiatives stand out to this diverse generation. Nearly half of Gen Zs surveyed by Deloitte reported their personal ethics have played a role in their career choices. Starting with ESG commitments is one way to ensure getting the right people on board in an organization. 

Image credit: <a href="https://unsplash.com/photos/iO2d-KYp5JU" target="_blank">Eliott Reyna</a> via Unsplash

Gen Z to Employers: Show You’re Committed to Ensuring Our Future

Tropical rainforests, or “Jewels of the Earth," overflow with abundance and wealth. They’re home to a staggering array of biodiversity, housing <a href="https://rainforests.mongabay.com/03-diversity-of-rainforests.html" target="_blank">over half of our plant and animal species</a> although they cover just a fraction of the Earth’s surface. Rainforests also store billions of tons of carbon, buffer against flooding and help prevent erosion. <a href="https://www.nps.gov/teachers/classrooms/wildlife-of-the-tropical-rainforests.htm" target="_blank">A quarter of natural medicines</a> have been discovered in tropical rainforests. In fact, it’s estimated that the benefit of the Amazon rainforest, if left standing, is <a href="https://www.xprize.org/prizes/rainforest/articles/economic-benefits-of-saving-the-rainforests#:~:text=Conducted%20by%20economists%20and%20agricultural,took%20many%20aspects%20into%20account." target="_blank">over $8.2 billion per year</a>. This value stems from products such as Brazil nuts, provision of raw materials like <a href="https://www.triplepundit.com/story/2015/making-market-deep-rainforest/34981" target="_blank">rubber and timber</a>, carbon dioxide sequestration, and local climate regulation.

The Amazon is the world's largest rainforest, stretching across northern South America like a green sheath. Brazil is home to nearly two-thirds of this lush ecosystem, containing the greatest extent of tropical rainforest in the world. Unfortunately, there’s <a href="https://www.triplepundit.com/story/2020/deforestation-increasing-pandemic/120676" target="_blank">trouble</a> in this corner of paradise. The amount of Amazon rainforest cleared has been rising over the last decade, and from 2020 to 2021, an area <a href="https://www.npr.org/2021/11/19/1057245837/brazil-amazon-rainforest-worst-deforestation-rate" target="_blank">nearly the size of Connecticut</a> was cut down. 

Ironically, over the last decade, the number of infraction notices for deforestation has declined. Brazil suffers from a multitude of environmental problems, in part <a href="https://www.triplepundit.com/story/2022/amazon-rainforest-brazil-bioeconomy/755501" target="_blank">fueled by its own government</a>. In 2018, Jair Bolsonaro was elected as Brazil's president, campaigning to open the Amazon rainforest <a href="https://www.theguardian.com/world/2019/jul/19/jair-bolsonaro-brazil-amazon-rainforest-deforestation" target="_blank">to agriculture and mining</a>. Since that time, he’s chipped away at environmental regulations and weakened government environmental agencies battling illegal mining and logging.

It wasn’t always like this. Deforestation rates fell between 2004 and 2012, as thousands of citations were written each year in Brazil. However, a backlog of cases languished for years in the courts, and only 10 percent to 15 percent of fines were ever paid. Today the federal and state agencies tasked with preventing deforestation are understaffed and under-resourced, at times even lacking cars to patrol areas. And they can face violent retaliation from loggers and ranchers, <a href="https://www.theguardian.com/world/2016/oct/24/brazil-amazon-environmentalist-murder-luiz-alberto-araujo" target="_blank">even fatal ones</a>. Cases that make it to the criminal justice system spend years in court, rarely sending offenders to prison. 

These problems aren’t confined to the steamy forests of Brazil, though. The Amazon’s destruction has ramifications across the globe. When rainforests are cleared, rainfall drops, which can make areas more vulnerable to drought and fires. On top of that, there’s increasing evidence that the Amazon’s destruction impacts <a href="https://e360.yale.edu/features/how-deforestation-affecting-global-water-cycles-climate-change" target="_blank">rainfall in distant regions</a>, perhaps as far away as the U.S. Midwest. Deforestation can also increase the spread of tropical diseases or spur the outbreak of new ones. Finally, clearing tropical rainforests releases billions of tons of carbon dioxide into the atmosphere. Sadly, it’s now estimated that the Amazon rainforest <a href="https://www.theguardian.com/environment/2021/jul/14/amazon-rainforest-now-emitting-more-co2-than-it-absorbs" target="_blank">releases more carbon dioxide than it absorbs</a>, as a result of heatwaves, fires set to clear land and droughts fueled by the loss of rain-producing trees.

There’s a desire for change. <a href="https://www.reuters.com/article/us-amazon-investors/as-amazon-burns-230-big-investors-call-on-firms-to-protect-worlds-rainforests-idUSKBN1W32T3" target="_blank">International corporations and investors</a> have been putting pressure on companies operating in the Amazon to help end the destruction. In 2019, over 200 investors recommended businesses implement a no-deforestation policy with measurable commitments. This includes establishing a monitoring system, assessing risks their supply chains pose to rainforests, and reporting annually on deforestation risks and management.

<a href="https://newsdirect.com/news/the-role-of-sustainability-certifications-in-mitigating-deforestation-775436120" target="_blank">Third-party sustainability certifications</a> also help ensure companies uphold their commitments, confirming the mitigation of deforestation in natural forests for the biofuel, forestry, food and agricultural industries. Some programs also assure products sourced from tropical forests are environmentally, socially and economically sustainable. 

While daunting, some businesses including <a href="https://www.triplepundit.com/story/2015/rainforest-alliance-reviews-paper-giants-forest-conservation-efforts/36946" target="_blank">Asia Pulp and Paper</a> and <a href="https://www.wilmar-international.com/docs/default-source/default-document-library/sustainability/policies/wilmar-ndpe-policy---2019.pdf?sfvrsn=7870af13_2" target="_blank">Wilmar</a> say they have taken the plunge and committed to zero natural forest destruction policies. Other companies, like Nestle, Mars and Kellogg, have committed to using palm oil that is deforestation-free. While far from foolproof, these pledges are steps in the right direction.

Committing to rainforest protection is also good business. Products that contribute to deforestation can be difficult to sell to retailers that have strong environmental, social and governance (ESG) policies in place. In addition, S&amp;P 500 companies that are actively managing and planning for climate change <a href="https://www.theguardian.com/sustainable-business/2014/sep/23/business-companies-profit-cdp-report-climate-change-sustainability" target="_blank">outperform those that don’t</a>, getting an 18 percent higher return on their investments, 50 percent lower volatility of earnings over the past decade, and 21 percent stronger dividends.

Finally, the public has a strong interest in companies that take environmental sustainability and corporate social responsibility seriously. <a href="https://morningconsult.com/2022/02/28/consumers-want-greener-climate/" target="_blank">Surveys show</a> the majority of people in major markets around the world expect companies to take action against climate change, and many say they would be <a href="https://www.triplepundit.com/story/2022/consumer-attitudes-esg/752006" target="_blank">more likely to purchase a product</a> if the company advocated for an issue they cared about. 

In a few short years, the Brazilian Amazon has transformed from a conservation success story to a cautionary tale. But it’s not too late to reclaim this treasure, and businesses should play a crucial role in protecting the wealth of the world’s greatest tropical rainforest. 

Image credit: <a href="https://unsplash.com/photos/JVUCzgbTjDE" target="_blank">Kiyoshi</a>/Unsplash

The Rapidly Shrinking Riches of the Amazon

ESG, which refers to how environmental, social and governance factors pertain to business, has been all over the headlines lately — and the debate has become increasingly contentious. Billionaires like <a href="https://time.com/6180638/tesla-esg-index-musk/" target="_blank">Elon Musk</a> call it a “scam,” consumers and business leaders see it as a <a href="https://www.triplepundit.com/story/2022/consumer-attitudes-esg/752006" target="_blank">strategic priority</a> to develop more sustainable business models, while governments are implementing ESG standards as a way to <a href="https://www.triplepundit.com/story/2022/disclosure-sec-reporting-requirements/748631" target="_blank">act in the public’s interest</a>. 

Each of these diverse sets of stakeholders have a valid claim to ESG, but they also have radically different priorities when it comes to how it’s used. It’s no wonder, then, that debates around the topic between these groups often devolve into arguments, name-calling, and more shouting than listening. 

In order to move the debate from combative to constructive, we need a shared language. Stakeholders need to be able to express what they want out of the movement, and be able to understand what others want out of it (even if they are approaching it from a different angle). 

When debating ESG, stakeholders typically fall into one or more of the following categories in terms of what they want out of the movement: assurance, impact or regulation.

<img alt="types of ESG" data-entity-type="file" data-entity-uuid="ccbd89d4-e2ec-4685-93fc-be1a28ab4479" src="/sites/default/files/inline-images/Types%20of%20ESG.png" width="1912" height="1056" loading="lazy" />

In this article, we’ll take a closer look at each, and suggest how they can be used together to facilitate the implementation of meaningful practices that positively impact society and the environment.

<h2>ESG for assurance</h2>

ESG for assurance is all about adjusting for financial risk. From this perspective, ESG is a means to make better financial decisions — rather than a way to drive sustainable business transformation. This is what investors, board members and chief executives care the most about: monitoring potential risks to the financial bottom line (for example, a lawsuit for non-inclusive hiring practices, or decreased future earnings as natural resources become less available). 

There are a number of frameworks out there to measure and report on this, all of which are voluntary, and some of which are more comprehensive than others. The conversation around ESG reporting continues to evolve, and increasingly, is moving toward a standard of Double Materiality:

<img alt="double materiality ESG principle" data-entity-type="file" data-entity-uuid="e0d225a7-bfca-4a59-8251-fccd7c0bed14" src="/sites/default/files/inline-images/double%20materiality%20ESG%20principle.png" width="2047" height="1063" loading="lazy" />

A <a href="https://1.reutersevents.com/LP=32742" target="_blank">new report</a> from Reuters has a nice explanation of this, and Proof of Impact recently published a piece <a href="https://impactentrepreneur.com/double-materiality-benchmarking/" target="_blank">on this same topic</a>.

That being said, until we have a universally accepted standard for reporting, it will continue to be difficult to compare ESG performance across companies using different frameworks. International bodies are working to solve that problem, and at the U.N. COP26 climate talks in 2021, the <a href="https://blog.movingworlds.org/top-esg-reporting-frameworks-explained/" target="_blank">International Sustainability Standards Board (ISSB)</a> was established in order to merge the many ESG disclosure standards into one, and to encourage the uptake of these standards globally. 

It’s important to note that this does not mean that ESG for assurance has anything to do with progress toward the U.N. Sustainable Development Goals (SDGs). Even if we arrive at a universal standard for reporting, companies can still report on factors like their environmental impact (carbon emissions, as an example) without any intention to reduce or address them. 

While it’s true that ESG will never reach its full potential when viewed exclusively through a financial materiality lens, it is still important to work toward a universal standard for the sake of comparison and global adoption. However, <a href="https://www.ey.com/en_be/assurance/how-the-eu-s-new-sustainability-directive-will-be-a-game-changer" target="_blank">as EY points out</a>, the need to build consensus across the globe puts global standards at risk of being drawn down to the lowest common denominator. That’s why, on its own, ESG for assurance isn’t enough. 

<h2>ESG for impact</h2>

ESG for impact is about leveraging ESG to drive more sustainable, equitable business models. As opposed to assurance, which is about mitigating financial risk, ESG for impact is about creating positive social and environmental value. 

ESG for impact is typically driven by a company itself, rather than an external reporting or regulatory body. A company will typically be motivated to make a real impact on environmental, social and governance factors when it sees the possibility of realizing a positive returns on that investment, including:

<ul><li>Building the brand and attracting new and more loyal customers</li>
	<li>Helping tap into new markets and customers</li>
	<li>Recruiting, engaging, and retaining the best employees</li>
	<li>Driving better governmental regulations and relationships</li>
	<li>Qualifying for preferential treatment with other business partners and suppliers</li>
</ul>Microsoft, for example, was not forced by any external body to make investments in becoming both <a href="https://blogs.microsoft.com/blog/2020/01/16/microsoft-will-be-carbon-negative-by-2030/" target="_blank">carbon neutral and water negative</a>, however, it did so because it helps build goodwill with some of its biggest customers (including governments) and also helps it retain and engage its employees.

As mentioned above, realizing the potential of ESG for impact still requires a universal standard to serve as a common measuring stick. The difference is that when reporting from this perspective, an additional step is taken to then address and improve those factors (versus simply disclosing them).

Social impact professionals, consumers and employees tend to care the most about impact. In some cases, politicians do as well, given that many of the priorities of potential voters relate to society and the environment. However, a desire to do good from a handful of companies is not enough to change the economy and achieve the SDGs. This is why ESG for regulation is still needed.

<h2>ESG for regulation </h2>

ESG for regulation is something that is imposed by an outside governing body — like a national government or the U.S. Securities and Exchange Commission (SEC). Globally, <a href="https://movingworlds.org/esg-reporting-guide#esg-requirements-and-regulations" target="_blank">governments have imposed</a> different ESG and CSR (corporate social responsibility) laws. Most of these are for disclosure and assurance purposes, and to facilitate the adoption of universal standards that make comparison across sectors and geographies possible using the same measuring stick.

For example, earlier this year the <a href="https://www.sec.gov/news/press-release/2022-46" target="_blank">SEC proposed a set of rules</a> to standardize and enhance climate-related disclosures for investors. These rules don’t set specific targets that companies need to achieve for impact purposes, but rather, are meant to unify ESG for assurance frameworks for easier comparison. Still, some governments, like India and Singapore, take regulation a step further by actually building in criteria related to impact. 

While not explicitly tied to ESG for impact, ESG for regulation is still an important part of scaling the movement. While investors will use those disclosures to make financial decisions, employees and consumers can use that same information to make decisions about whether or not to engage with certain companies based on their track records. 

<h2>Combining the three to move the movement forward</h2>

The ESG space is rapidly evolving and expanding, and debates are an inherent part of that. But for those debates to lead to any type of meaningful outcome, all stakeholders need to be more active in owning their intentions for ESG initiatives and reporting — and also in labeling and communicating them. 

Indeed, at the most basic level, companies need to report on environmental, social and governance factors for assurance and regulatory purposes. But those things aren’t necessarily mutually exclusive to ESG for impact -— in fact, assurance, impact and regulation are all needed for the movement to reach its full potential. 

ESG can help facilitate better financial decisions and progress toward the SDGs. After all, as former CEO of Unilever Paul Polman puts it, investing in a more sustainable and regenerative economy is “the biggest business opportunity of our time”... and the future of our planet depends on it. 

Image credit: <a href="https://unsplash.com/photos/YUcGY15s5_o" target="_blank">Nick Staal</a>/Unsplash

Graphics courtesy of Moving Worlds

We Need to Create a Shared Language Around ESG

From the start of his presidency, <a href="https://www.businessinsider.com/bolsonaro-plan-to-develop-amazon-rainforest-2019-1" target="_blank">Jair Bolsonaro</a> has promised the Brazilian people free economic development in the Amazon rainforest. Half a year into his term, he was telling the world: “We preserve more [rainforest] than anyone. No country in the world has the moral right to talk about the Amazon. You destroyed your own ecosystems.” 

Bolsonaro's decision to allow deforestation in the Amazon rainforest for ranching and agriculture is shortsighted, especially when you consider the climate consequences, as the Council on Foreign Relations (CFR) <a href="https://www.cfr.org/in-brief/deforestation-brazils-amazon-has-reached-record-high-whats-being-done" target="_blank">outlines in an August brief</a>. Even still, his popularity with Brazilians makes sense. Why wouldn’t a nation with plentiful natural resources want to make use of those resources and increase its gross domestic product? 

According to the CFR, Brazil has become the world’s top exporter of beef and soy. Could Bolsonaro be right about unrestrained deforestation in the Amazon being the right economic decision for Brazil?

<h2>A new model for economic growth: The bioeconomy</h2>

Or maybe the desire for economic development and the need for conservation don’t have to be at odds. In the United States, the <a href="https://www.triplepundit.com/story/2021/forests-sustainable-forestry-101/719676" target="_blank">Forest Stewardship Council</a> (FSC) is able to find a confluence between those goals through responsible forest management. That means the owners of forests in the U.S. are able to gain profits from the land while keeping ecosystems intact. Business activities like selective logging, hunting and recreation can make use of forests in a way that maintains them for generations to come, and they give landowners an incentive to keep forests the way they are. In a sense, forest management shows landowners the true value of trees. 

In the Amazon rainforest, economic opportunities look more like acai berries and ecotourism. Acai palms grow natively in the rainforest, and the acai industry has benefited more than 500,000 families over the last 20 years, Carlos Nobre, a Brazilian earth system scientist and member of the Royal Society, said at this year’s <a href="https://www.eventbrite.com/e/the-amazon-as-a-bioeconomy-superpower-tickets-412279006607?utm_source=eventbrite&amp;utm_medium=email&amp;utm_campaign=event_reminder&amp;utm_term=eventname" target="_blank">United Nations Science Summit</a>. Some acai farmers are reaching the middle class, Nobre said, having come from the depths of poverty.

Compared to conventional cattle and soy industries that require a transformation of the land, acai also provides an economic advantage. Annually, cattle provide $100 per hectare and soy $600, while a hectare of acai is valued at $1,000, Nobre explained. 

<h2>Opportunities for developing a bioeconomy in the Amazon rainforest abound</h2>

The <a href="https://www.nationalgeographic.com/animals/fish/facts/arapaima" target="_blank">15-foot piraracu fish</a>, oils, pulps, butters, craftsmanship — these are all economic opportunities that Amazonians have only begun to explore, Nobre said. That’s not to mention the incredible potential for ecotourism. “Two streets here in New York have more companies than 6.5 million square kilometers [in the Amazon rainforest],” he said, emphasizing the economic possibilities. Investment in a bioeconomy would reap benefits across the triple bottom line — for indigenous people, biodiversity and climate, as well as profit.

But a lot of work will be required to achieve this goal. The Brazilian Amazon has already seen <a href="https://www.aljazeera.com/news/2022/9/19/tragedy-foretold-brazil-sees-surge-in-amazon-fires" target="_blank">more fires</a> this year than in all of 2021. Also this year, the nation set another record for deforestation. In April alone, <a href="https://www.aljazeera.com/news/2022/5/6/brazil-sets-another-amazon-deforestation-record-prompting-alarm" target="_blank">the equivalent of 140,000 football fields</a> were transformed. This is just months after Bolsonaro signed the <a href="https://www.bbc.com/news/science-environment-59088498" target="_blank">COP26 pledge</a> to end deforestation by 2030. 

We’re just a month away from an election that may prove supportive of a bioeconomic approach, though. Former president Luiz Inácio Lula da Silva is running, and he is pursuing a <a href="https://www.reuters.com/world/americas/exclusive-lula-pushes-brazil-indonesia-congo-cop-forest-alliance-if-elected-2022-08-31/" target="_blank">rainforest alliance</a> with Indonesia and the Democratic Republic of Congo, which has the second-largest rainforest in the world, in the case that he is re-elected. It was under Lula’s presidency, from 2004 to 2012, that deforestation in the Brazilian Amazon <a href="https://news.mongabay.com/2022/09/brazil-faces-two-contrasting-legacies-for-the-amazon-in-octobers-elections/" target="_blank">decreased by over 80 percent</a>. Rates have increased by 60 percent under Bolsonaro.  

While many Brazilian Amazonians pursue <a href="https://www.csmonitor.com/World/Americas/2021/1102/Saving-the-Amazon-one-wood-carved-spoon-at-a-time" target="_blank">sustainable and traditional industries</a>, the <a href="https://www.hrw.org/news/2021/04/22/bolsonaros-empty-promises-protect-amazon" target="_blank">environmentally lax approach</a> of the current administration actively harms their initiative. Whoever wins their presidential bid should instead be anxious to get behind bioeconomic activities.

In an article for <a href="https://www.forest-trends.org/blog/an-amazon-bioeconomy-is-a-path-forward-for-brazil/" target="_blank">Forest Trends</a>, Beto Borges states the economic potential teeming in the Brazilian Amazon: “As a prominent economic force and the world’s largest forest country, Brazil is strategically positioned to be a global leader in shaping and modeling a new way of doing business, a challenge and opportunity as countries slowly turn to post-pandemic recovery.” 

Image credit: <a href="https://unsplash.com/photos/RvV6qccrbkA" target="_blank">Jaime Spaniol</a>/Unsplash

The Amazon Rainforest is a Massive Bioeconomic Opportunity

Over the past few decades, the gender gaps in the working world regarding pay, leadership roles, advancement opportunities and funding have somewhat narrowed. But they still remain too wide for many women struggling to elevate their brands in a male-dominated business climate. 

In many ways, we still see women playing second-fiddle to their male counterparts, even though nearly half of all businesses — <a href="https://www.fundera.com/resources/women-owned-business-statistics" target="_blank">40 percent, to be exact</a> — are owned by women. Those female-owned enterprises <a href="https://www.fundera.com/resources/women-owned-business-statistics" target="_blank">generate $1.8 trillion a year</a>, making women a formidable force in the business world. 

The question is: How can venture capitalists and other businesses looking to make deals with founders support women-owned brands? 

<h2>Supporting founders through funding </h2>

According to recent studies, a paltry <a href="https://hbr.org/2021/02/women-led-startups-received-just-2-3-of-vc-funding-in-2020" target="_blank">2.3 percent of startups</a> that received venture capitalist (VC) funding in 2020 were women-led. This lack of support from funding sources does not match the number of women-owned brands that exist, leaving many startups out in the cold, seeking alternative means of funding their ventures. 

The pandemic has also had a disproportionately negative impact on the careers of women — highlighted, among other things, by the sharp decline of financial backing women founders have received. A study by McKinsey showed that women’s jobs were <a href="https://hbr.org/2020/09/dont-let-the-pandemic-set-back-gender-equality" target="_blank">1.8 percent more vulnerable</a> than their male peers during the pandemic. The added responsibility on many of these women serving as unpaid caregivers to family members has only left them further behind in terms of closing the gender gap.

While some VCs have <a href="https://nixongwiltlaw.com/invest-in-women" target="_blank">put forth funds</a> specifically for women-owned businesses in an attempt to address the obvious disparity, in order to permanently close the gap, the 2.3 percent statistic needs to be addressed, and more funding needs to be made readily available for women-owned brands. Funding is the crucial first step to supporting these ventures and closing the widening gaps. 

<h2>It’s all about who you know </h2>

Women founders and entrepreneurs must harness the power of networking to further their business ventures. In business, who you know — rather than what you know — has always been a deciding factor in whether a business succeeds or fails. With this in mind, women-owned startups should seek out business-to-business networking events, partner with other female-owned companies for supplies or marketing assistance, and seek out connections within their industries. 

Partnering with other women-owned brands can help create a robust network that can be leveraged when a business needs exposure, funding or assistance. Additionally, B2B deals can be better negotiated successfully when the people in the room have a history together, know one another from a business standpoint, and can vouch for one another. 

<h2>Bringing attention and resources to women-owned brands</h2>

Diversity and equality consciousness has been having a moment in the business world in the last few years, which only stands to further benefit female founders seeking a leg-up in historically male-dominated spaces. The more consciousness that is raised regarding <a href="https://www.triplepundit.com/story/2022/businesses-black-women-promotion-gap/754421" target="_blank">gender gaps in the business world</a>, the more solutions will be brought to the table, and the more attention female-owned businesses will receive. 

Events such as <a href="https://www.leadpages.com/blog/national-womens-small-business-month/" target="_blank">National Women’s Small Business Month</a>, which happens every October, seek to bring awareness to the <a href="https://www.fundera.com/resources/women-owned-business-statistics" target="_blank">12.3 million</a> women-owned brands and businesses. Websites such as <a href="https://www.womenownedlogo.com/about-women-owned" target="_blank">AboutWomenOwned</a> also help to elevate female-owned businesses. 

There are also government programs that exist solely to support female-run businesses. When community members and other businesses stand up for female enterprise and take their concerns to the government, it can lead to more widespread change.

<h2>Diversity = performance </h2>

Business-minded people — male or female — rely on metrics to analyze and drive performance. The metrics for diverse businesses show that having a female perspective at the helm can lead to enhanced performance for the business overall: A McKinsey report showed that organizations that were more gender-diverse outperformed their less-diverse counterparts by <a href="https://www.mckinsey.com/business-functions/people-and-organizational-performance/our-insights/why-diversity-matters" target="_blank">up to 25 percent</a>. An investment in women-owned brands, by consumers and by other businesses, is an investment in furthering innovation and furthering female economic growth across the board. 

Image credit: <a href="https://unsplash.com/photos/QgYvORVDdd8" target="_blank">LinkedIn Sales Solutions</a>/Unsplash

How Can Businesses Support Women-Owned Brands?

Research by management consulting firm <a href="https://www.russellreynolds.com/en/insights/divides-and-dividends" target="_blank">Russell Reynolds Associates</a> reveals that while CEOs say they are pursuing sustainability within their organizations, employees and next-generation leaders disagree. As the clock ticks down to the climate crisis, leadership advisor and former CEO of Russell Reynolds, <a href="https://www.russellreynolds.com/en/people/consultant-directory/clarke-murphy" target="_blank">Clarke Murphy</a>, asserts that averting it will depend on leaders who are invested in a timely shift toward stakeholder capitalism. He spoke with TriplePundit about what makes this next generation of leaders different and how they are already affecting change in major corporations worldwide.

“Boards of directors have realized that this is a requirement of successful governance,” Clarke said of the movement he is witnessing toward sustainable leadership. “CEOs and boards see that it has to be a part of it.” He said almost all private equity firms have concluded that “a more sustainable footprint creates more value.”

So what attributes do these next-generation executives boast that make them more equipped to promote sustainable operations? Clarke described them as having multi-level <a href="https://www.forbes.com/sites/forbescoachescouncil/2020/06/15/the-role-of-systems-thinking-in-organizational-change-and-development/" target="_blank">systems thinking</a> — able to understand the complexity of intersecting issues and fold them into their solutions. “The ability to do this differentiates them,” he said. And as a result, they’re more likely to involve stakeholders, including regulators and competitors. “When they interviewed and tested these people, they are much more socially oriented… They interact more deeply and broadly with others and tend to have deeper listening skills.”

“These execs tend to be able to challenge their own way of thinking,” he said — which results in novel solutions. “They set pretty audacious goals and drive actions and investment toward those goals.” He gave the example of <a href="https://www.neste.com/oil-products/igniting-truck-re-fuel-ution-learning-volvo-and-mack-trucks" target="_blank">Volvo’s biodiesel trucks</a> and the lack of an adequate fuel supply. Instead of scrapping production, “they went back and took care of it.”

“It’s about action orientation. This is the issue of the next two generations,” he explained. “Their action orientation to speak up and act up is powerful.” He pointed to a proliferation of moonshotters in particular — leaders he described as taking action instead of waiting around for all of the answers.

But will it be enough to stave off climate disaster?  Clarke is hopeful. “The reason I wrote the book [Sustainable Leadership, <a href="http://www.amazon.com/Sustainable-Leadership-Lessons-Vision-Courage/dp/1119872154/" target="_blank">released this month</a>] is that we need to take it from tens of business leaders to tens of thousands. We hope we can accelerate the progress.” But while many people tend to focus on the climate alone, he pointed to the interconnection between the breadth of issues facing humankind on a planetwide basis — from water usage to poverty, equitable compensation, access to education, sustainable cities and more. As he wrote in Sustainable Leadership: “Corporations can’t thrive in a world of poverty, inequality, social unrest and environmental crisis. Markets will shrink, supply chains will break, consumers and employees will revolt and external regulators will slap you with punitive fines and operating restrictions.”

Clarke is also confident that sustainability can be achieved without sacrificing profit for purpose. “I think most businesses who are sincere about action see profit and purpose as aligning. I don’t think they’re putting purpose ahead of profit. The best companies have aligned them.” He explained that some businesses have even gone on to enhance profit as a part of purpose. “Not because they’re magical, but because they’re doing things like using less power and shipping across the ocean less.”

Clarke also pointed out that the best companies are recognizing their effect on communities and society as a whole, starting with the supply chain. He gave the example of Duke Energy's Blue Horizons program in North Carolina. The utility went from nearly causing a full-on ecological disaster when it leaked 40,000 tons of coal ash into the Dan River in 2014, to beginning to phase out coal and switch to renewables under CEO Lynn Good. “It took them a while to figure out,” he said, but eventually the energy provider realized that listening and investing in the community would pay off.

Clarke wrote: “The transition toward sustainable business is so much more than the right pledges, plans, programs or words on a page. It’s about leadership.” Which is why the next few years could be a time of reckoning for many businesses. While he expects to start seeing results from those that took action soon, “The ones that talked a big game but aren’t doing anything, we’re going to uncover them.” 

Image credit: <a href="https://unsplash.com/photos/34GZCgaVksk" target="_blank">Christina @ wocintechchat.com</a>/Unsplash

Preventing the Looming Climate Crisis Through Sustainable Business Leadership

Imagine driving from Washington, D.C., to Denver. It’s about 1,600 miles — or, <a href="https://pubs.acs.org/doi/pdf/10.1021/es702969f" target="_blank">according to many studies</a>, the distance the average fruit or vegetable travels before it gets to American consumers. Road trips may be great for the soul, but they’re not the most efficient way to get produce to consumers’ plates. And that’s just one example of the disadvantages of the fragmented produce industry, where unnecessary blind spots create both food and economic waste. 
  
Demystifying the supply chain and expanding the resources available to buyers and growers will help transform the produce industry into a connected and sustainable movement.

<h2>The reality of today’s produce industry</h2>

Simply put, the world cannot afford to waste food. In 2021, 193 million people were acutely food insecure and in need of urgent assistance, according to the <a href="http://www.fightfoodcrises.net/fileadmin/user_upload/fightfoodcrises/doc/resources/GRFC_2022_FINAl_REPORT.pdf" target="_blank">Global Report on Food Crises</a>. That is indeed a crisis, and without urgent action, it’s likely to get worse. Food insecurity is exacerbated by the other crises humanity faces, including climate change, global conflict, economic shutdowns and supply slowdowns. 
  
Food waste certainly contributes to these crises, but it also <a href="https://www.triplepundit.com/story/2022/food-waste-good-business/742936" target="_blank">represents an opportunity</a> to update food systems. The produce industry in particular is ripe for improvement. 
  
At $1.3 trillion in annual sales, the global produce market is enormous in scale and has food waste issues to match. Some measures to mitigate this waste — like picking produce early — can have undesirable side effects, such as reducing flavor and nutritional benefits. Despite these efforts, nearly 50 percent of all fruits and vegetables grown globally still goes to waste, <a href="https://www.unep.org/thinkeatsave/get-informed/worldwide-food-waste" target="_blank">according to the United Nations</a>. 
  
The fruits and vegetables that do make it to Americans’ plates don’t arrive in the most efficient way. In the process of traveling the aforementioned 1,600 miles, the average produce item is handled four to eight times by middlemen and marked up to three to six times the price. This creates approximately 50 percent of economic waste that is incurred by the consumer at the supermarket.
<figure role="group"><img alt="produce industry - producepay ceo interviews mexican farmer" data-entity-type="file" data-entity-uuid="3acb1888-3156-417d-bb7e-84df19a3cafc" src="/sites/default/files/inline-images/produce%20industry%20-%20producepay%20ceo%20interviews%20mexican%20farmer.jpg" width="1500" height="844" loading="lazy" /><figcaption>ProducePay CEO and founder Pablo Borquez interviews a Mexican farmer.</figcaption></figure><h2>The opportunity for operational solutions</h2>

Consumers are more interested than ever in the provenance of their food, especially produce. Ideally, this would be transparent across the board, making it clear where each fruit or vegetable came from, how it was grown, what was put into it and who handled it. 
  
The problem is that fresh produce is not traded on any commodities exchange. The industry lacks capital, pricing data, and platforms to connect electronically, creating inefficiencies and a lack of transparency. For generations, growers and buyers have had to operate their businesses while navigating around blind spots. 
  
Growers have had limited access to the buyers of their produce and industry data to help optimize their business. Buyers can’t usually travel to each farm to observe operations and uncover business opportunities. It’s no surprise that this system has made it difficult to build trust and make progress at scale. 
  
There’s a bright side among these challenges: many of the deepest issues in the produce industry are operational. With the right operational solutions, they can be overcome. Continued work to transform the produce supply chain into a more efficient and transparent food system will better equip the produce industry to meet the global food demand and avert crises by getting more food to the right people and places at the right time.

<h2>A supply chain that empowers buyers and growers</h2>

Exciting, groundbreaking work is happening at the genetic, seed, and farming levels to improve efficiency and reduce waste in the produce industry. Now, efforts must be focused on the post-harvest side of the business. 
  
This is where demystifying the produce supply chain comes in – and expanding the resources available to growers and buyers. Both can be accomplished by harnessing the possibilities of digitalization. For example, companies working at the intersection of agriculture and sustainability have pioneered technology to create specialized marketplaces that allow growers and buyers to access each other directly, effectively reducing post-harvest waste, economical waste, and the 1,600 “food miles” fresh produce travels before reaching the dinner table.

These types of solutions help meet the highest-priority needs of both parties. For growers, greater connection means greater visibility into buyers’ requirements and information, such as fair market pricing, supporting their business objectives. For buyers, it means a better line of sight into their partners, including which growers are selling direct (or would like to do so) and using growing practices in alignment with environmental, social and governance (ESG) requirements. 
  
It must be a priority to accelerate investment in this type of innovative, expansive solution that links buyers and growers – and delivers the pricing data, operational insights, and transparency they need to make more strategic business decisions. 
  
Fixing fragmentation in the produce industry can bolster businesses, reduce food waste and provide consumers with higher quality fruits and vegetables. Ultimately, a connected and sustainable movement can make wide-ranging impacts, helping to mitigate climate change and support a healthier world with more equitable access to fresh food for all. 

Images courtesy of ProducePay

Transforming Our Fragmented Produce Industry Is Imperative

Major storms struck the opposite coasts of North America over the weekend. Hurricane Fiona <a href="https://www.npr.org/2022/09/20/1123846384/puerto-rico-hurricane-fiona-hurricane-maria-anniversary" target="_blank">made landfall in Puerto Rico</a> on Sunday, killing at least two people and leaving millions without power before battering islands across the Caribbean including <a href="https://www.cnn.com/2022/09/20/weather/hurricane-fiona-puerto-rico-dominican-republic-tuesday/index.html" target="_blank">Turks and Caicos</a> and the <a href="https://www.nytimes.com/video/world/americas/100000008544143/hurricane-fiona-dominican-republic.html?playlistId=video/world" target="_blank">Dominican Republic</a>. Meanwhile <a href="https://apnews.com/article/floods-storms-united-states-alaska-typhoons-6bc502bdafc4876e6af40d924b3835e6" target="_blank">remote villages in Alaska</a> are taking stock of the damages from Typhoon Merbok, which affected more than 1,000 miles of coastline. As the global community watches the frequency and intensity of extreme weather events increase before their eyes, <a href="https://www.zurich.com/en/media/magazine/2022/there-could-be-1-2-billion-climate-refugees-by-2050-here-s-what-you-need-to-know" target="_blank">experts warn that up to 1.2 billion people</a> could become climate refugees by 2050. 

On the sidelines of Climate Week and the U.N. General Assembly, a group of leaders formed a new expert council to address climate-driven migration and put the case of climate refugees on the agenda at the U.N. climate talks this fall. 

<a href="https://www.climatemigrationcouncil.org/about-us" target="_blank">Launched on Monday</a>, the Climate Migration Council includes chef and humanitarian activist José Andrés, former U.S. cabinet secretaries, and current and former mayors and presidents from around the world. <a href="https://www.dropbox.com/s/akno7z5s215ezt8/Climate%20Migration%20Declaration%20(1).pdf?dl=0" target="_blank">All members signed</a> a Climate Migration Declaration and "committed to press leaders and multilateral organizations on this growing issue." 

<h2>Expert council looks to address climate-driven migration</h2>

The storms that battered Alaska and the Caribbean came after historic flooding killed more than 1,500 people in Pakistan last month and <a href="https://news.un.org/en/story/2022/09/1127051" target="_blank">left an estimated 7.6 million others displaced</a>. Meanwhile the Horn of Africa is facing one of its worst droughts on record, with <a href="https://www.unicef.org/stories/climate-drought-horn-of-africa" target="_blank">nearly 8 million people</a> driven from their homes in Somalia and Ethiopia alone. 

The pace and intensity of climate-related disasters mean people will continue to be displaced, and countries that have avoided or evaded meaningful immigration policy reform for decades, such as the United States, are doing themselves no favors by keeping their heads in the sand. 

The Climate Migration Council — launched by Laurene Powell Jobs and her <a href="https://www.emersoncollective.com/about/" target="_blank">Emerson Collective</a> — looks to combine the influence of policymakers, academics and business leaders to push the issue onto the global agenda. 

"We know that the climate crisis acts as a powerful accelerant to migration patterns, and we need legal pathways, clear institutional leadership and new integrated strategies at all levels of governance that anticipate and safely accommodate the increasing numbers of people affected by the climate crisis," the Climate Migration Declaration reads. 

Ed O'Keefe, senior White House and political correspondent for CBS News, <a href="https://www.cbsnews.com/news/jose-andres-climate-change-immigration-united-nations-general-assembly/" target="_blank">published an exclusive</a> on the council on Monday and spoke with Marshall Fitz, managing director of immigration for the Emerson Collective, who will help run the new group. "This is not a topic that governments like to entertain because they want to preserve the sovereignty of their borders," Fitz told him. "It's a hard conversation to have, but it's one that if we're going to be responsible about how we manage this large-scale flow of people, we need to get on top of it." 

Notably, the council includes Michael Chertoff and Janet Napolitano, two former homeland security secretaries who oversaw U.S. immigration policy, as well as former leaders of the U.S. Central Intelligence Agency (CIA), former presidents of Costa Rica and Colombia, and members of the <a href="https://www.mayorsmigrationcouncil.org/about-the-mmc" target="_blank">Mayors Migration Council</a>, a global mayor-led coalition to accelerate action on migration and displacement.

These leaders agreed to <a href="https://www.dropbox.com/s/akno7z5s215ezt8/Climate%20Migration%20Declaration%20(1).pdf?dl=0" target="_blank">four specific action items</a> by signing the declaration — among them financing locally-driven climate adaptation and resilience strategies to "address the root causes of climate-induced migration" and partnering with governments to ensure people who have already been displaced by disasters "have access to humanitarian assistance that meets their essential needs with full respect for their rights wherever they are."

In the short term, that means putting the plight of climate refugees on the agenda at the U.N. climate talks (COP27) in Sharm El Sheikh, Egypt, in November, O'Keefe reported. 

<h2>Putting climate refugees on the agenda at COP27</h2>

"We can no longer treat climate mitigation, climate adaptation, and climate-related migration as separate challenges," the Declaration reads. This would represent a policy departure from past U.N. climate talks, where world leaders made modest moves on financing adaptation and mitigation in developing countries but continued to skirt the issues of climate migration and climate-induced loss and damage, which refers to the fallout from extreme weather events. 

At the most recent COP26 talks in Glasgow, leaders <a href="https://unfccc.int/process-and-meetings/the-paris-agreement/the-glasgow-climate-pact/cop26-outcomes-finance-for-climate-adaptation" target="_blank">pledged</a> more adaptation and mitigation financing for developing countries but <a href="https://www.reuters.com/business/cop/climate-loss-damage-earns-recognition-little-action-cop26-deal-2021-11-13/" target="_blank">failed to establish</a> a dedicated new loss and damage fund after pushback from rich nations like the U.S.

Failing to help vulnerable countries cover the cost of disaster recovery means more displaced people, who will have to wait even longer before returning to their homes — if they ever can. 

<h2>Chef José Andrés and World Central Kitchen positioned to use their humanitarian expertise to drive new advisory council: Will more business leaders follow suit?</h2>

Michelin-starred chef José Andrés founded <a href="https://wck.org/story" target="_blank">World Central Kitchen</a> after the 2010 earthquake in Haiti to bring chefs and volunteers together to provide meals immediately following natural disasters and other crises. 

The team at World Central Kitchen has moved swiftly to the epicenter of virtually every major disaster since — from <a href="https://www.triplepundit.com/story/2018/jose-andres-3bl-forum-brands-taking-stands-2018-humanitarian-year/11466" target="_blank">Puerto Rico</a> following Hurricane Maria in 2017 to <a href="https://www.triplepundit.com/story/2019/jose-andres-and-world-central-kitchen-step-again-mozambique/83296" target="_blank">Mozambique</a> after Cyclone Idai two years later. More recently, World Central Kitchen has become <a href="https://www.triplepundit.com/story/2022/world-central-kitchen-ukraine/745296" target="_blank">the largest food relief organization</a> in war-torn Ukraine, and it's <a href="https://twitter.com/WCKitchen" target="_blank">currently on the ground</a> in Puerto Rico, the Dominican Republic and Alaska giving those affected by Fiona and Merbok the comfort of a hot meal. 

They'll head to Bermuda, Turks and Caicos and other Caribbean islands affected by Fiona in the coming days. "The experience of the past and the work in many islands around the Caribbean is giving us this know-how in making sure we adapt to the situation," Andrés said in a <a href="https://twitter.com/chefjoseandres/status/1572297787403821063/video/1" target="_blank">video message posted to Twitter</a> on Monday. 

His expertise in addressing the immediate fallout of natural disasters and speaking to climate refugees and other displaced people will surely be invaluable for the new council. But although the council is billed as "a group of government, business, national security, academic and advocacy experts," Andrés seems to be the only business leader on the member list so far. 

Considering that sustainable business coalitions like BSR <a href="https://www.bsr.org/en/emerging-issues/preparing-for-rising-climate-migration" target="_blank">already identify</a> climate-driven migration as a material issue, business leaders looking to support climate refugees now have a clear avenue to do so in the form of the new council.

"Businesses can act by ensuring people — and the issues that affect our communities — are integrated into climate strategies and net-zero commitments," Eileen Gallagher, associate director of climate and sustainability at BSR, said in a statement. "This includes listening and understanding people most affected by climate change and co-creating solutions with underserved communities, pushing for policy change, protecting human rights, and building resilience to climate change across their value chains."

But the question remains: Will business leaders take the opportunity?

Chef José Andrés Joins Former Presidents and Mayors in New Expert Council  to Address Climate-Driven Migration

Fossil energy advocates have long used the carrot of job creation — and the stick of job loss — to make their case, regardless of the impact on the environment and local communities. That argument has lost force in recent years, and now the Inflation Reduction Act will finally put it to bed by accelerating the creation of tens of thousands of new jobs in clean energy fields.

<h2>Follow the money: U.S. clean energy industry capitalizes on falling costs of wind and solar</h2>

The job creation argument was a solid one for fossil energy stakeholders until the cost of wind and solar energy began to drop in the early 2000s. 

Before then, hydropower was the only utility-scale, zero-emission alternative for electricity generation in the U.S. However, the availability of hydropower is limited by circumstances of geography. Similarly, the U.S. geothermal industry has been limited by the availability of suitable sites.

In contrast, solar panels and wind turbines can be located throughout the country, including coastal waters in the form of offshore wind farms.

Former President Barack Obama’s SunShot initiative <a href="https://www.triplepundit.com/story/2012/10-million-prizes-americas-next-top-model-rooftop-solar-model/64631" target="_blank">helped to foster the steep drop</a> in the cost of solar power. The program aimed to improve solar cell efficiency and lower the cost of solar panels and other hardware, as well as streamline permits and reduce other “soft” costs. <a href="https://www.triplepundit.com/story/2012/november-surprise-obama-resets-all-above-energy-policy/60816" target="_blank">The U.S. wind industry</a> also benefitted from federal R&amp;D programs promoted by the Obama administration. 

<h2>Despite setbacks, renewable energy is here to stay</h2>

When Obama left office, former President Donald Trump took a number of steps aimed at supporting fossil energy stakeholders. That included summarily pulling the U.S. out of the <a href="https://www.triplepundit.com/story/2019/common-ground-climate-change-us-labor-and-business-leaders-stand-paris-agreement/85811" target="_blank">2015 Paris Agreement on climate change</a>. Nevertheless, federal support for wind, solar, and other renewables continued during his administration through <a href="https://www.triplepundit.com/story/2017/leaked-doe-grid-study-favors-renewables-will-politics-intervene/16316" target="_blank">ongoing programs at the Department of Energy</a>, as well as other key agencies including the <a href="https://www.triplepundit.com/story/2017/us-wind-energy-blasts-forward-new-9-million-offshore-lease/18801" target="_blank">Department of the Interior</a> and the <a href="https://cleantechnica.com/2017/05/02/thanks-trump-us-army-cranks-yuuuuuge-solar-wind-project/" target="_blank">Department of Defense</a>.

Stakeholders in the utility sector also continued to plan for the end of coal power during the Trump administration, and the business community continued to push the market for renewable energy through organizations like the Renewable Energy Buyers Alliance.

<h2>The stage is set for next-level action</h2>

By the time President Joe Biden took office, wind and solar were firmly established in the U.S. energy landscape, though with mixed success on a state-by-state basis.

The new Inflation Reduction Act is designed to steamroll over state-based policies that have been holding back wind and solar development. In an August analysis, the trade organization <a href="https://cleanpower.org/blog/its-a-big-deal-for-job-growth-and-for-a-clean-energy-future/" target="_blank">America’s Clean Power</a> described the IRA as “the single largest investment in renewable power in the history of this country, and the largest investment in climate action to date.”

Among other provisions, the bill extends production tax credits for wind and solar, establishes a new tax credit for energy storage systems, and incentivizes domestic supply chain manufacturing. “It’s hard to understate the transformative impact that the IRA will have on the country’s electric grid — not to mention the broader climate benefits,” America’s Clean Power wrote, emphasizing that the new law provides stability and predictability in federal energy policy.

On a preliminary basis, America’s Clean Power estimated that the new law will generate $600 billion in capital investment and foster the development of 525 to 550 gigawatts of new clean power.

That activity is expected to create approximately 550,000 new jobs in clean energy industries, more than doubling the current clean energy workforce. In comparison, the organization estimates that a business-as-usual scenario would result in just 335 gigawatts of new clean power capacity.

<h2>Closing the door on destructive fossil energy projects</h2>

There is no such thing as an impact-free energy development project, renewable or not. However, to the extent that clean power projects reduce or eliminate local impacts while contributing to decarbonization, the growth of the U.S. renewable energy industry can create thousands of new jobs without destroying public health or the planet.

The clean power job creation argument began to gather steam during the Obama administration when <a href="https://www.triplepundit.com/story/2017/keystone-xl-approval-brings-high-risk-few-jobs-nebraska/14306" target="_blank">critics</a> of the sprawling <a href="https://www.triplepundit.com/story/2015/keystone-xl-pipeline-sputters-out-us-solar-generation-soars-record-high/32201" target="_blank">Keystone XL tar sands oil pipeline</a> pointed out that the project was expected to create just a handful of permanent jobs in the U.S. By the time President Biden took office, <a href="https://www.triplepundit.com/story/2021/joe-biden-keystone-xl/717641" target="_blank">the project was all but dead</a>.

In a parallel development, the state of Louisiana has emerged as a test case for the clean energy transition. In 2013 the Louisiana Flood Protection Authority-East filed a <a href="https://www.triplepundit.com/story/2013/louisiana-lawsuit-undercuts-keystone-xl-pipeline-safety-argument/49936" target="_blank">lawsuit against dozens of oil, gas and pipeline companies</a>, alleging their coastal infrastructure damaged protective natural barriers, exposing local communities to risks.

More recently, plans to expand a massive plastics complex in Louisiana’s notorious “Cancer Alley” were put on hold by a federal court, which cited both <a href="https://www.theguardian.com/us-news/2022/sep/16/plastics-plant-louisianas-cancer-alley" target="_blank">local public health impacts</a> as well as climate impacts.

America’s Clean Power currently ranks Louisiana down at 48th place in wind, solar, and energy storage capacity compared to other U.S. states, but that is about to change.

Earlier this month, the U.S. Department of Commerce tapped Louisiana as one of its “Build Back Better Challenge” awardees for regional energy projects. The $50 million award will enable Louisiana to <a href="https://cleantechnica.com/2022/09/11/build-back-better-lives-again-now-with-green-hydrogen/" target="_blank">kickstart a green hydrogen hub</a> in the New Orleans region, leveraging access to offshore wind resources in the Gulf of Mexico. 

The $50 million award is just the tip of the iceberg. <a href="https://www.whitehouse.gov/wp-content/uploads/2022/08/Louisiana.pdf" target="_blank">The Biden administration estimates</a> that the Inflation Reduction Act will pump another $5 billion of investment in utility-scale clean power and energy storage projects into the Louisiana economy by 2030, with a consequent impact on job creation.

With the total loss of the job creation argument, it’s little wonder that fossil energy stakeholders, and their allies among elected officials, have fallen back on <a href="https://www.triplepundit.com/story/2022/texas-blackrock-fossil-energy/754656" target="_blank">the “woke capitalism” slur</a> to gin up public resentment against renewable energy investors.

That may work in election-year politics, but there is no holding back the clean power tide. The impact of the Inflation Reduction Act will continue to ripple out long after President Biden completes his time in office.

Image credit: <a href="https://www.pexels.com/photo/solar-technicians-installing-solar-panels-8853536/" target="_blank">Los Muertos Crew</a>/Pexels

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