[Graeme]

6 things about the McKinsey survey on sustainability

Companies are increasingly rallying behind sustainability, but as it becomes part of the company’s core business, many still find it a challenge to capture its full financial, social and environmental benefits.

This is one of the main findings of a recent survey by United States-based management consulting firm McKinsey involving 3,000 business executives from companies worldwide, on actions they take to address environmental, social and governance issues, the practices they employ to manage sustainability and the value they give to such initiatives.

McKinsey’s findings showed that trends are changing. While firms still value reputation as important, many of them do not necessarily pursue reputation-building activities that give them the maximum financial returns.

The firm compared the results to surveys conducted since 2010, and in many years, reputation management was a top reason why companies address sustainability. This year, however, aligning sustainability with the company’s business goals, missions and values was cited the most important reason to address sustainability.

The survey, titled ’Sustainability’s strategic worth‘, also identified six key trends in how companies address sustainability issues and maximise value as they carry out their sustainability plans.

1. Aligning sustainability with business goals
Companies increasingly view sustainability as an integral part of their business operations. From 30 per cent of the companies surveyed in 2012, nearly half (43 per cent) are now looking to align sustainability to their overall business goals, missions and values. Moreover, the survey found those companies which incorporated sustainability in their organisational processes such as performance management fared better than their industry peers.

2. CEOs viewing sustainability as a top priority
As sustainability becomes increasingly central to the business agenda, it is also climbing higher on the priority lists of CEOs. Almost half of the 281 CEOs polled by McKinsey said sustainability was a “top three” priority on their agenda.

eco-business

[Pops]

I do graphics for some county fairs, a couple of years ago the themes were really heavy on "sustainability" recycling etc. The only thing that actually changed?
The words on the posters.

[Graeme]

America’s Top 10 ‘Coolest Schools’ in Sustainability

For the eighth year, Sierra, the official publication of the Sierra Club, has released its “Coolest Schools” rankings, rating the 173 four-year U.S. colleges and universities who returned a questionnaire created by Sierra and the Association for the Advancement of Sustainability in Higher Education.

And the winner is … the University of California, Irvine. The school has placed in the top 10 for the last five years but this is its first time in the top slot. Among its efforts to become more eco-friendly that earned it the honor: three on-campus solar projects, a 19-megawatt turbine cogeneration plant and regularly exceeding its energy efficiency goals.

“For eight years Sierra magazine has encouraged America’s colleges and universities to fully embrace their unique and multifaceted role in tackling the climate crisis and protecting America’s air, water, public health and beautiful places,” said Sierra magazine’s editor in chief Bob Sipchen, citing the role of colleges and universities in innovative research and development, powering campuses with wind and solar, and educating students in the most advanced thinking on sustainability.

The top ten schools for 2014 are:

1. University of California, Irvine (Irvine, CA)
2. American University (Washington, DC)
3. Dickinson College (Carlisle, PA)
4. Loyola University Chicago (Chicago, IL)
5. Lewis and Clark College (Portland, OR)
6. Stanford University (Stanford, CA)
7. University of South Florida (Tampa, FL)
8. Green Mountain College (Poultney, VT)
9. University of Connecticut (Storrs, CT)
10. Georgia Institute of Technology (Atlanta, GA)

ecowatch

[Graeme]

SUSTAINABILITY: TIME TO GET IN THE REAL GAME

Corporate sustainability reporting has taken off in recent years, with thousands of companies publicly disclosing everything from use of recycled materials to energy savings to water withdrawals to biodiversity and habitat protection efforts.

Some observers call such reports nothing more than public relations. Corporate sustainability reporting, though, has been one of the few environmental memes that’s actually gained ground in the last decade.


But Bakker’s declaration wasn’t about the trend of corporate sustainability reporting — it was about its substance, or lack thereof.

His point was that corporate sustainability reporting separates sustainability from the real business of business, a sidelining that’s fatal to real sustainability (and not smart for business, either).

I’ll go Bakker one further: Corporate sustainability reporting is just one example of how marginalized sustainability and conservation are in public and private decision making.

Yes, we’ve made progress. But the numbers we tout as measures of green hope and success are often not as good as they first sound.

ensia

[Graeme]

Sustainability: Reconfiguring the Relationship Between Humanity, Energy, and the Natural World

A new ‘Zeitgeist’ is increasingly taking hold in growing pockets of society, politics and the business world. All indications point to one direction – towards the concept of ‘sustainability’ dominating human behavior and thinking in the twenty-first century. As the urbanization wave around the globe rolls on, megacities are increasingly becoming the epicenter of human life and economic activity for billions of people. Inevitably, this trend will bring about new challenges and exacerbate looming, well-known challenges such as climate change. As the World Economic Forum notes in a newly-released report on “The Competitiveness of Cities”:

“Cities are especially intensive users of energy, food and water, given their concentrations of people and economic activity, and are responsible for over half of global greenhouse gas emissions. Their challenge, particularly in the developing world, is to fuse technology and markets to become much more efficient in using available resources.”

Thus, global needs for clean water, sanitation and food as well as demand for energy, mobility (transportation) and for an improved standard of living will increase and put tremendous strain on existing natural resources. The growing awareness of environmental problems – especially that without a timely, coordinated, and ‘corrective’ intervention by governments the problem of climate change will eventually become irreversible – in addition to the perception of natural resources’ finite supply brings any debate back to the fundamental question of how to sustain life on earth.

What is Sustainable Development about?

The first association that comes to mind has to do with energy needs in general – and the finite fossil fuel supply amid projected future demand growth – and carbon-emissions-free energy in particular. Renewable energy sources (solar, wind, hydro) have the potential to pick up the slack and supply a larger percentage of projected future energy demand globally. In this context, technological innovation represents one suitable solution to problems related to sustainability. However, a different angle to tackle these problems is a change in human behavior based on better information and awareness leading to energy savings by implementing simple energy efficiency measures. This point emphasizes the importance of public awareness and/or education, which can serve as a catalyst for action – i.e. a change of course.

Apart from concerns about energy, the concept of sustainability includes all aspects of political, economic, and social life in so far as present actions may constrict future actions. The so-called UN ‘Brundtland Report’ from 1987 is very instructive on this topic and defines sustainable development as follows:

theenergycollective

[ralfy]

The formation of institutions of higher education and corporations require high energy returns.

[vtsnowedin]

The formation of institutions of higher education and corporations require high energy returns.

`While both higher education and corporations consume high amounts of energy if it is available there is nothing that says it is a root requirement for their formation or existence. Some corporations of course that engage in energy intensive activities such as steel production or transportation need energy to preform their desired tasks. The corporation papers or structure do not drive this as a sole proprietorship would need as much energy to melt the ore. etc.

[Graeme]

How sustainability leaders hold steady over the long haul

Fortunately, the steady erosion of your green dream is not inevitable or even unpredictable. A growing body of research now reveals key traits and processes that differentiate leading sustainability programs from the rest.

McKinsey recently conducted an online survey garnering responses from 3,344 executives representing a spectrum of regions, industries, company sizes, functional specialties and tenures. The "Sustainability's strategic worth" study results show that sustainability leaders are approximately three to five times more likely to:

1) Set aggressive external targets or goals for sustainability initiatives
2) Have a unified sustainability strategy with clearly articulated strategic priorities (no more than five focus areas)
3) Set aggressive internal targets or goals for sustainability initiatives
4) Involve a broad leadership coalition in shaping or co-creating the sustainability strategy, goals and milestones
5) Understand the financial benefits of sustainability within the organization

What's more, reports McKinsey, much larger shares of executives at the leader organizations say their top leaders prioritize sustainability and report higher employee engagement on sustainability at every level, including CEOs, board members and sustainability advisory committees.


"Building a Culture for Sustainability," a recent book by Jeana Wirtenberg, takes a close look at the sustainability efforts inside nine companies to uncover what sets apart those with staying power. Wirtenberg's case studies offer some rich analysis for understanding the internal and external practices that get results.
Wirtenberg bolsters over 100 best practices with specific examples and cross references them into categories including people, community, customers, planet, supply chain and profit. Here's a snapshot of lessons learned at the end of each chapter:
Changing culture is not a "one size fits all" effort, and any change-management endeavor must start with an understanding of the company's unique culture.
Align sustainability with and embed it in everything you're doing; it's not a separate set of activities.
Take a top-down and bottom-up approach. Translate sustainable behavior into business practices. Make middle management accountable for business objectives.
Practice what you preach. This is particularly critical in the professional services industry.
Engage with all your stakeholders up front and listen. Address stakeholder concerns head-on and don't sweep issues under the rug.
In branding, don't make sustainability campaign-specific. Rather, have it woven and incorporated holistically into your culture and your brand.
Ensure key performance indicators (KPIs) are in place.

(For a deep dive into sustainability programs from Ingersoll Rand, Sanofi and Wyndham, read exclusive excerpts from Wirtenberg on EarthPeople Media.)

greenbiz

[ralfy]

`While both higher education and corporations consume high amounts of energy if it is available there is nothing that says it is a root requirement for their formation or existence. Some corporations of course that engage in energy intensive activities such as steel production or transportation need energy to preform their desired tasks. The corporation papers or structure do not drive this as a sole proprietorship would need as much energy to melt the ore. etc.

The energy use does not take place directly.

[Graeme]

Science and sustainability goals: what researchers want businesses to know

If your company is aiming to improve the efficiency of its factory, it might aim for a 3% improvement in productivity each year, with a stretch target of 5%. Hitting those goals would deliver meaningful benefits to the company’s bottom line. If, however, your company is trying to plan for operating in a world where every fundamental resource – from water to energy to talent – is increasingly constrained, standard business goal-setting strategies may not apply.

Instead, sustainability advocates and consultants are increasingly encouraging companies to get a better grasp on the science behind various environmental impacts – and the reality of climate change – and to set goals accordingly. A similar approach is being encouraged for social responsibility goals, although there’s not necessarily the same consensus there on metrics – no global standard exists (yet) for measuring employee happiness or productivity, for example.

The push for more science-based (or what some call “context-based” or “reality-based”) goals in sustainability began in earnest in 2013, as various leading-edge companies, including Unilever, Autodesk, and Intel, began to talk more openly about incorporating science into goal-setting.

In late 2013, Climate Counts released the world’s first science-based ranking of corporate carbon emissions. It calculated not only the amount of CO2 each company emits, but also each company’s potential reductions, placed against a backdrop of the global reductions climate scientists say we need in order to stem the tide of climate change.

“Five years ago, it was the norm to set incremental goals for sustainability in the same way that you would for other aspects of a business – people would look at what they did the previous year and aim to do 3% better,” says consultant and Vanderbilt professor Jeff Gowdy, who partnered with author and consultant Andrew Winston (also a Guardian contributor) to launch the site PivotGoals.com, a database of corporate sustainability goals, last year.

theguardian

[Graeme]

How to make Wall Street notice sustainability leaders

Companies that have made sustainability a core element of their business strategies often find that their efforts deliver significant value. The gains in the marketplace can come in the form of reduced risk, lower costs, sustainability-driven market opportunities and top-line growth, or intangible benefits such as greater customer loyalty, higher brand value or improved ability to recruit and retain top-notch employees.

But many sustainability leaders report frustration in translating their sustainability-related competitive strengths and corresponding profitability into improved stock market results. As Joel Makower noted in August in “Why sustainability leaders don’t impress Wall Street,” investors seem unconvinced that strong sustainability performance delivers shareholder value. More specifically, he argues that investors don’t have the data they need to connect the dots.

Makower concluded, however, that the situation seems to be improving as more data become available from Bloomberg, MSCI and other sources — and as companies learn to “tell their story.” But I see a risk that robust sustainability data may get harder to come by as many companies, frustrated by the seemingly increasing demands to fill out more surveys and provide more data and by the lack of payoff for such efforts, pull back on their sustainability reporting.


The world needs an accepted framework for sustainability reporting that would facilitate cross-company and even cross-industry comparisons. Success in this regard requires a pared focus on a core set of sustainability metrics with particular emphasis on ones that translate into financial advantage. As Makower’s article stresses, simplicity matters.

In this regard, David Lubin and I have proposed a straightforward "S/GPR" metrics framework, which seeks to provide a mechanism for companies to share data on their sustainability-driven (S) growth (G), productivity gains (P), and risk mitigation (R). We believe that this tightly focused “value driver” model offers a way to connect with investors and Wall Street analysts on terms they understand.

greenbiz

[Graeme]

Seven ways that lead to corporate sustainability

We have gathered some of their top tips. These companies are members of the Network for Business Sustainability’s Leadership Council, which is based at Western University’s Ivey Business School in London, Ont. The council’s members share best practices with each other, and today, they share some with you.

Tip #1: With multiple stakeholders, collaborate on multiple tracks

“Environmental organizations and the forest industry, including Tembec, saw an opportunity to work collaboratively on conservation outcomes in the boreal forest rather than engage in divisive and protracted communication battles in the marketplace. Regardless of how innovative our proposed solution was, provincial governments and First Nations, as decision makers on the land, also had to observe, see a benefit and engage their own processes to improve the agreement and move ahead together. We learned that for business and NGO collaborations to succeed, other parties must also be afforded the ability to shape and support the outcomes.” – Chris McDonell, manager of aboriginal and environmental relations with Tembec.

Tip #2: Two heads are better than one

“There’s no question Suncor faces technical challenges developing Alberta’s oil sands. As fierce as competition is in our industry, we choose to collaborate with both our competitors and our critics to find solutions. We’re all in this together. Any one company’s environmental issues are a challenge for the whole industry including Suncor, regardless of our own environmental record. We find better solutions faster by working together, and transparency with external stakeholders helps us speed implementation of these solutions.” – Peter MacConnachie, senior sustainability issues management specialist with Suncor.

Tip #3: The business case is not only about money

theglobeandmail

[Graeme]

The 2014 Dow Jones Sustainability Index: Abbott to Woolworths

After an annual review, 46 companies were deleted from the 15-year-old Dow Jones Sustainability World index — the three biggest (by free-float market capitalization) to be booted were Bank of America, General Electric and Schlumberger.

The good news is that 32 were added, including Amgen, Commonwealth Bank of Australia and GlaxoSmithKline.

Even better news, 16 companies have been recognized every single year: Baxter, Bayer, BMW, BT, Credit Suisse, Deutsche Bank, Diageo, Intel, J Sainsbury, Novo Nordisk, RWE, SAP, Siemens, Storebrand, Unilever and UnitedHealth.

Every year, S&P Dow Jones Indices teams with RobecoSAM to update its portfolio of sustainability index services, which consider both sustainable business practices and financial performance. The assessment criteria this year covered tax strategy (to address the growing risks associated with tax optimization schemes); social and environmental reporting factors, including materiality; human capital development policies; and performance scoring related to occupational health and safety, and talent recruitment and retention.

greenbiz

[dohboi]

Solar as % of US electricity is about doubling about every year--now at about .5%:



Wind is at about 5%, but not expanding at quite such a breakneck speed: http://en.wikipedia.org/wiki/Wind_power ... ted_States

[Graeme]

97% of companies fail to provide data on key sustainability indicators

Only 128 of the 4,609 largest companies listed on the world’s stock exchanges disclose the most basic information on how they meet their responsibilities to society, according to a new report.

The study by Canadian investment advisory firm Corporate Knights Capital says 97% of companies are failing to provide data on the full set of “first-generation” sustainability indicators - employee turnover, energy, greenhouse gas emissions (GHGs), injury rate, pay equity, waste and water.

While the number of companies disclosing individual metrics has risen in recent years, the study says it remains “disconcertingly low” and the improvement is starting to tail off.

More than 60% of the world’s largest listed companies currently fail to disclose their GHGs, three quarters are not transparent about their water consumption and 88% do not divulge their employee turnover rate.

The slowing down of disclosure is illustrated by the fact that while the number of large listed companies disclosing their energy use increased by 88% from 2008 to 2012, there was only a 5% rise from 2011 to 2012. A similar reporting slowdown is occurring on the other first-generation indicators.

The reason these figures are so important is because there is a direct correlation between transparency and companies taking substantive action to improve their performance.

theguardian

[dohboi]

Theoretically, we could be at 1/3 solar by 2020 (six doublings). I'm guessing limits, politics, economics and other factors may interrupt the doubling every year, though. If wind only doubles twice over the same period, we'd have 20% wind--so nearly 50% wind and solar by 2020--mathematically possible, perhaps.

Mandated efficiency, conservation and contraction should be able to get us nearly off coal for electric production by then, especially if hydro, biomass and (unfortunately) nukes continue to supply something like their current levels.

I have to fantasize about at least potential positive outcomes every little once in a while.

[Graeme]

5 ways to whet consumers' appetites for sustainability

Sustainable consumer behavior has improved only incrementally, and remains stagnant or has become less sustainable in areas such as transportation, housing and consumer goods, according to the 2014 Greendex survey.

Let's examine some ways that consumers can change their behavior to increase their sustainable consumption.

The fifth edition of this Greendex survey detects increasing concern about the environment, together with increasing awareness of human activity as the cause for climate change coupled with growing concern about how a changing climate will worsen people's way of life in their lifetime. It is clear that consumers are largely unable to translate their personal values and worries into meaningful action beyond incremental improvements.

On a slightly brighter note, however, the survey shows that consumers' food habits have become more sustainable in 11 of 18 countries tracked as consumers have started to embrace the local and organic food movements.

So, how is all of this relevant for business?

To better understand how we as individuals, including global corporate organizations, can accelerate the adoption of more sustainable habits among consumers, we took an in-depth look (PDF) at the dynamics of consumer behavior change in the area of food.

These insights may well be applicable beyond the realm of food and should be of interest to all who want to see a concerted drive to increase sustainable consumer behavior overall.
Here are five ways that can help to unlock sustainable consumer behavior.

1. Focus on emerging markets

A new index of behavior change potential based on current food habits versus willingness and capacity to change shows that consumers in emerging markets such as Mexico, Brazil and China have the most potential for change, while those in North America, Europe, Australia and Japan are the most set in their current habits (see accompanying graphic). The countries with the top-five change potential scores contain 1.8 billion people.

2. Target the right consumers
3. Focus on peer-to-peer communications
4. Be transparent
5. Link sustainability with personal health

greenbiz

[dohboi]

Thanks to Bob Wallace at neven's forum for link :

First Solar just bid two new solar farms in India at $0.086 and $0.087 per kWh.

(cheaper than coal-electricity using imported coal)

http://reneweconomy.com.au/2014/solar-c ... irms-60317

[dohboi]

One of the 'Big Four' German utilities is turning away from coal, gas and nukes, and toward renewables, grid improvements, and load management:

German: http://www.zeit.de/wirtschaft/unternehm ... ergiewende

the Source: http://www.eon.com/en.html
"Our new strategy: Empowering customers. Shaping markets.

E.ON will focus on renewables, distribution networks, and customer solutions. Its conventional generation, global energy trading, and exploration and production businesses will be combined in a new, independent company."