Tagged
ESG


ESG and CSR Game Changer: the CalPERS Embrace

A model of good money management embraces ESG. 

By Hank Boerner

We’ve commented here on “Universal Ownership,” which like the term “SRI” can have several meanings and dimensions, depending on the speaker (and those who hear her and interpret the words). I like the concept of UO as the communities’ monies, with funds contributed into the larger pool, partially and in the main by individuals and government, and other institutions, to be managed by independent fiduciaries with very clear duties and responsibilities for the ultimate beneficiaries. Think of pension funds (corporate and public sector), mutual funds, and endowments and the concept of monies being universally-owned.

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04:51 pm by csrwiretalkback[87 notes]

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CSD-19: Can developed and developing countries find common ground?

With multi-stakeholder dialogue on CSD-19 and Rio+20 continuing, will a bridge be crossed?

Originally posted on the CSRwire website.

By CSRwire Contributing Writer Martha Shaw

The 19th annual meeting of the United Nations Commission on Sustainable Development (CSD-19) opened with hopes countries will agree on policy decisions that will significantly improve the safe use of chemicals, management of waste, safety in mining, efficiency of transport and reduction of the world’s consumption of Earth’s materials. Annual CSD meetings seek to promote more sustainable use of Earth’s resources. Sha Zukang, Under-Secretary-General for Economic and Social Affairs, warned of the consequences of unsustainable consumption and production on the world’s ecosystems. Member States are being urged to agree on a plan to promote more efficient and safer use of chemicals and waste.

“We need to change our consumption and production patterns so that our economies proceed on sustainable paths, and so that we are able to address key global challenges like climate change, water and other resource scarcities, and environmental degradation,” said Mr. Sha Zukang.

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07:53 pm by csrwiretalkback[6 notes]
Your query didn't return any results. [hope] [CSD-19] [United Nations] [UN] [Rio+20] [ESG] [sustainability]

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Save the World, Not the Planet

We need to act as citizens of the world to save it.

By Sophie Constance

With Friday marking the 41st anniversary of Earth Day, we need to stop being consumers of the planet, and start being citizens of the world.

“Save the planet,” we hear endlessly. But a planet is just a rock orbiting a star. It’s a self-correcting system and it will be here for a long time after we’re gone. The world, on the other hand, is the interlocking community of people, the environment and millions of species of plants and animals. The planet doesn’t need saving. The world absolutely does.

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06:00 pm by csrwiretalkback[17 notes]

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To Create a True CSR Culture, You Have to Start with Wall Street

Some CEOs are bucking the Wall Street trend to move the needle on CSR.

By Ann Charles

It’s impossible to discuss the role of Corporate Social Responsibility (CSR) in today’s business without acknowledging the elephant in the room. The economic collapse that began in 2007 was largely the result of a colossal failure of leadership in both the finance industry and U.S. government. The once venerable investment banking industry has devolved into an unsupervised and unregulated market, a giant that casts its dark shadow over the entire economic system. And while most of us are still wading through the debris of the Great Recession, Congress has yet to enact any truly game changing regulation, and Wall Street compensation still incongruously exceeds the pay of today’s brain surgeons.

For a comprehensive history of how we got here, watch Inside Job, but here is the abbreviated version: The banking community created complex high risk financial instruments whose singular purpose was to drive maximum short term profits. The government did nothing to protect us, except to determine taxpayers must bailout these companies that were considered too big to fail. The credit crisis, housing market collapse, illegal foreclosures and long term unemployment ensued, while the banks continue to thrive, rewarding themselves with lavish pay and bonuses.

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09:48 pm by csrwiretalkback[4 notes]

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Impact Investing 2.0 – time for a new approach!

Impact investing is a hot topic, but Version 2.0 would improve the odds.

By Dr. Matthew Kiernan

“Impact Investing” is generating an enormous amount of “buzz” these days – even if it is talked about much more than it is practiced. It has become particularly popular among foundations, endowments and high net worth individual investors. While the precise meaning of the term is still being defined and debated, in essence, impact investing is a style that explicitly pursues social and environmental objectives as well as purely financial ones.

In many cases investors are willing to sacrifice some of the latter to achieve the former. Typically, impact investing occurs in the emerging markets, in private transactions and at a small scale: to date the average investment has been in the USD 1 million range. Typical projects might include the purchase and distribution of cleaner-burner cooking stoves or solar-powered lamps, to rural villages in Africa, Asia or Latin America. All very good stuff, but…

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10:42 pm by csrwiretalkback[9 notes]
Your query didn't return any results. [impact investing] [SRI] [ESG] [CSR] [UN PRI] [investors] [environmental]

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Frack! Can The Energy Giants Learn From Independent Gas Companies?

Shareholder activists are pointing the way to greater environmental responsibility by gas drillers.


By Sanford Lewis, Attorney

Natural gas often is touted as a bridge fuel, leading a transition to cleaner energy sources. But recently it also has a lot of attention for the extraction practice known as “hydraulic fracturing” or “fracking,” which has stirred environmental controversy and threatens to undermine its growth as an energy source. Under pressure from investors and environmentalists, some of the smaller independent energy companies have begun to improve disclosures and environmental precautions. In contrast, the energy giants Exxon Mobil and Chevron are more resistant and face resolutions in their upcoming shareholder meetings. Can they learn from the best practices of the independents?

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03:29 pm by csrwiretalkback[42 notes]

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Baking Social and Environmental Values into Corporate DNA

The flexible purpose corporation could make companies more responsible.


By Susan H. Mac Cormac

As the oil flowed for months unchecked into the Gulf from the Deep Horizon rig, the world focused on the environmental and social harm corporations can inflict. Did BP cut corners in terms of safety and labor standards in order to promote shareholder value? 

In the wake of the BP oil spill, pundits and populists alike raised their voices to accuse large corporations of being motivated solely by the pursuit of profits at the expense of social values. However, the legal requirements that govern corporate behavior (what I refer to as the “corporate form”) often motivate corporations to focus on impact on short-term share price as opposed to impact on the natural environment and communities in which they operate. While the “business judgment rule” does afford considerable flexibility, I believe more incentives (and protection) are needed to encourage good behavior.

Thus, the Flexible Purpose Corporation was born. Currently a bill before the California State Assembly (S.B. 201), this new type of legal entity was created by a talented group of corporate lawyers in California. Specifically the form would allow corporations to pursue “special purposes,” such as sustainability or social goals, which are negotiated by and agreed to between the board and its shareholders, together with traditional financial goals. 

The Flexible Purpose Corporation shifts the fiduciary duties of boards and management, essentially creating a new safe harbor (in addition to the business judgment rule) to encourage and ultimately require the pursuit of agreed upon special purposes alongside financial goals. If, for example, management wanted to install solar panels at a facility, they could factor in the sustainability benefit, as well as the financial cost-benefit in their decision-making process.

The Flexible Purpose Corporation creates accountability because shareholders would be able to enforce adherence to the designated special purpose, in much the same way they are able to enforce financial goals today. Through metrics and mandatory reporting, this new corporate form promises a level of corporate transparency not currently available. The increased level of transparency and accountability promises to bring socially responsible investing out of its niche market into the mainstream, making funding more accessible for companies with environmental and social priorities.

It is important to note this new form not only enables the incorporation and operation of other new entities (like B Corps and Benefit Corporations from other states) but also works well with robust standards that have been (and are being) developed by folks like UL Environmental.

If enacted the Flexible Purpose Corporation would not replace existing corporate forms. It would simply provide another option for both new companies and existing corporations that wish to embed social and environmental values more deeply into their DNA. The new form has been specifically designed to accommodate large and small companies, including private and publicly-listed companies. 

If BP was incorporated as a Flexible Purpose Corporation, would the oil spill have happened? I honestly believe it would have been much less likely. But more importantly, its shareholders would have had a clear path to enforce accountability for the environmental and social impact. 

About Susan H. Mac Cormac

Susan Mac Cormac is a partner in the Corporate Group of Morrison & Foerster’s San Francisco office. She serves as co-chair of the firm’s 550-lawyer Business Department and the Cleantech Group.

Talkback Readers: What’s your take on the Flexible Purpose Corporation? Would companies act more responsibly with it? Share your thoughts on Talkback!

09:55 pm by csrwiretalkback[13 notes]

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Choke Point: China - Confronting Water Scarcity and Energy Demand in the World’s Fastest Growing Industrial Economy

Exploring an escalating confrontation over resources with global implications.

Originally posted on the CSRwire website.


By Keith Schneider, Circle of Blue

Water scarcity, rapid economic growth and soaring energy demand are forming a tightening noose that could choke off China’s modernization.

Underlying China’s new standing in the world, like a tectonic fault line, is an increasingly fierce competition between energy and water that threatens to upend China’s progress. Simply put, say Chinese authorities and government reports, China’s demand for energy, particularly for coal, is outpacing its freshwater supply.

In a dozen chapters - starting this week with updates posted weekly through April - Choke Point: China reports in text, photographs and interactive graphics the powerful evidence of the fierce contest between growth, water and fuel that is virtually certain to grow more dire over the next decade.

Tight supplies of fresh water are nothing new in a nation where 80 percent of the rainfall and snowmelt occurs in the south, while just 20 percent of the moisture occurs in the mostly desert regions of the north and west. What’s new is China’s surging economic growth is prompting the expanding industrial sector, which consumes 70 percent of the nation’s energy, to call on the government to tap new energy supplies, particularly the enormous reserves of coal in the dry north.

The problem, scholars and government officials told us, is there is not enough water to mine, process and consume those reserves and still develop the modern cities and manufacturing centers China envisions for the region. “Water shortage is the most important challenge to China right now, the biggest problem for future growth,” said Wang Yahua, deputy director of the Center for China Study at Tsinghua University in Beijing. “It’s a puzzle that the country has to solve.”

The consequences of diminishing water reserves and rising energy demand have been a special focus of our attention for more than a year. In 2010, in our Choke Point: U.S. series, Circle of Blue found rising energy demand and diminishing freshwater reserves are two trends moving in opposing directions across America. Moreover, the speed and force of the confrontation is occurring in the places where growth is highest and water resources are under the most stress - California, the Southwest, Rocky Mountain West, and Southeast.

Stripped to its essence, China’s globally significant choke point is caused by three converging trends:

  • Production and consumption of coal - the largest industrial consumer of water - has tripled since 2000. Government analysts project China’s energy companies will need to increase coal production by 30 percent by 2020.

  • Fresh water needed for mining, processing and consuming coal accounts for the largest share of China’s industrial water use, a fifth of all the water consumed nationally. Though national conservation policies have helped to limit increases, water consumption, nevertheless, has climbed to record highs.

  • China’s total water resource, according to the National Bureau of Statistics, has dropped 13 percent since the start of the century. In other words China’s water supply is 350 billion cubic meters (93 trillion gallons) less than it was at the start of the century. That’s as much water lost to China each year as flows through the mouth of the Mississippi River in nine months. Chinese climatologists and hydrologists attribute much of the drop to climate change, which is disrupting patterns of rain and snowfall.

Choke Point: China, though, is not necessarily a story of doom.

We found a powerful narrative in China in two parts, and never before told: first is how effectively national and provincial governments enacted and enforced a range of water conservation and efficiency measures that enabled China to progress as far as it has.

Second is that despite the extensive efforts to conserve water, and to develop water-sipping alternatives like wind and solar energy, China still faces an enormous projected shortfall of water this decade to its energy-rich northern and western provinces. How government and industry leaders respond to this critical and unyielding choke point forms the central story line of the next era of China’s unfolding development.

About Keith Schneider

As Senior Editor, Keith manages the Circle of Blue news desk and participates in multimedia story development reporting, editing and production. He is a nationally-known journalist, online communications specialist and environmental policy expert. Keith was a New York Times national correspondent for over a decade, where he continues to report as a special writer on energy, real estate, business and technology. Before joining Circle of Blue, Keith was media and communications director at the US Climate Action Network and communications director at the Apollo Alliance. Keith developed one of the first independent online news desks as the founder and executive director of the Michigan Land Use Institute. A sought-after public speaker on the role of original reporting and online communications in the public interest, Keith is a regular contributor to the Times, Yale Environment 360, Grist Magazine and other prominent news organizations. You can read his personal website at Modeshift.org.

Talkback Readers: As energy demand and freshwater reserves continue to move to opposite directions, what steps can China take to minimize its environmental impact? Tell us on Talkback!

04:23 pm by csrwiretalkback[7 notes]

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