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Source: Governance & Accountability Institute

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April 21, 2015

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Corporate CEOs  Acknowledged to be the Face of the Brand -- What Face Do Sustainability Leadership Companies Present?

Corporate CEOs are considered by many to be the face and cultural symbol of the public company -- whether they choose to be, or not. CEOs have become the Chief Reputation Officers.  Part of the credit can go to Jack Welch when he was the young, dynamic, fast-charging head of giant General Electric Company.  Years after he stepped down Mr. Welch is still giving CEOs advice, though his advice rarely touches on sustainability topics (to the contrary, Jack Welch dismissed the threat of global warming).

And credit also goes to Lee Iacocca four decades ago when he revived the fortunes of Chrysler Corporation, the laggard of America’s then Big Three auto makers.  His autobiography and other “leadership” books he authored helped to position both the veteran carmaker himself and his “rescued company.”  Mr. Iacocca helped to position CEOs are “rescuers” of companies in trouble and elevated the prominence of the office.

So today – who is the face of a large public company that is an acknowledged leader and pacesetter in sustainability, responsibility, ethics, contributions to the common good…the serious concerns of shareholders and stakeholders…and more?  Take a look at Paul Polman, the CEO of Unilever – as The Guardian newspaper comments: “…he is everywhere.”  What does that mean?

As Dhananjayan Sriskandarajah (Secretary-General of the activist group Civicus) describes it in a commentary:  “…he’s been criticizing fellow business leaders for putting profit ahead of fighting poverty and climate change, blogging on the urgent need to create a low-carbon economy, championing market-based approaches to ending poverty and calling for gender parity in development.” Is this the model for the 21st Century CEO?

This might be considered to be “so-un-CEO-like” if you look skeptically at Polman’s MNE peer group in general. Yes, there are global company CEOs who address important societal issues in a courageous and forward-thinking way.  But when we consider the immense size, reach and influence of Unilever, we could consider the actions and comments of CEO Polman to be the pacesetter for important stakeholders:  his company’s peers; his workforce; investors; the public sector; NGOs…

In the commentary we see other companies in the spotlight for beneficial social program actions:  Santander, IBM, Telefonica, Nike, Mastercard, World Bank (who the author feels all have educational initiatives worthy of positive recognition).  And the head of Civicus calls out companies that are seen as laggards – Google, Amazon, Starbucks (because of their “tax evasion” policies which work against the common good).

Key takeaways:  Unilever and CEO Paul Polman are showing the way; some other global companies are addressing some societal issues in a positive way; others are hurting society with policies such as evading taxes; there is a new spirit of dialogue and partnership between companies and NGOs; true corporate engagement involves risk; at the same time, NGOs have to be careful to protect their own methods and motives.

We invite you to read the Top Story in this week’s newsletter.  Think it through:  What do you think of Paul Polman’s outspoken approach…positions on issues…should some of his CEO peers take the risk and follow suit on these and other business-society issues?  Is he on target with the issues of most concern – the material issues – to his important stakeholders?  Is he too much of a risk taker?

Top Story of the Week

Corporations are doing more about sustainability – but we must remember they have their own agenda  
(Friday - April 17, 2015)
Source: The Guardian - Paul Polman, the CEO of Unilever, is everywhere. In the last few weeks alone, he’s been criticizing fellow business leaders for putting profit ahead of fighting poverty and climate change, blogging on the urgent need to create a...

Sustainability in Focus

What the experts say: how to make our cities more sustainable
(Friday - April 17, 2015)
Source: The Guardian - The growth of the city demands our attention. How can we make our cities better places to live, both for us and the planet, when they are expanding at such a phenomenal rate in many parts of the world?

Why This Entrepreneur Says Sustainability Is the No. 1 Business Opportunity  
(Friday - April 17, 2015)
Source: Entrepreneur.com - Though he’d always been the outdoorsy sort, racing sailboats as a teen on the Great Lakes not far from his native Detroit, Adam Lowry remembers being bitten by the sustainability bug during an ecology lecture as a Stanford...

George Will: Sustainability gone wild
(Thursday - April 16, 2015)
Source: The Star Press - Syracuse University alumni are new additions to the lengthening list of people who can stop contributing to their alma maters. The university has succumbed — after, one suspects, not much agonizing — to the temptation to indulge...

The 3 pitfalls that trap sustainability leaders — and how to avoid them
(Thursday - April 16, 2015)
Source: GreenBiz - In my conversations with sustainability leaders throughout the years, I’ve heard varying views on what works to engage others — whether it be employees, CEOs, shareholders or your neighbor — in a productive exchange about how to...

Big energy companies operating behind 'smokescreen of sustainability' – GetUp  
(Wednesday - April 15, 2015)
Source: The Guardian - Emissions of toxic pollution by EnergyAustralia and Origin Energy have increased by more than 500% in the past financial year, and AGL has become the country’s biggest carbon polluter, a new study claims.

Shhh! Don't Tell Institutional Investors, but Sustainability Drives Returns in Real Assets
(Wednesday - April 15, 2015)
Source: Huff Post - Dave Chen and his team at Equilibrium Capital in Portland, Ore., don't generally pitch pension funds and other institutional investors on the firm's thesis that environmentally and socially beneficial practices can drive...

Making sustainability part of the business
(Tuesday - April 14, 2015)
Source: Harvard Gazette - Some people see climate change as a distant threat whose severest impacts won’t be felt for decades. But the head of one of the world’s largest consumer products companies says it’s here now, and it’s hurting business.

Leading CFOs Reveal Sustainability-Related Risks and Opportunities in New Corporate Eco Forum and World Environment Center Report
(Tuesday - April 14, 2015) Associated Profiles : CSRwire
Source: CSR Wire - The Corporate Eco Forum (CEF) and World Environment Center (WEC) today published new insights from leading Chief Financial Officers on the importance of evaluating and...

5 ways to boost sustainability's value proposition for CFOs
(Monday - April 13, 2015)
Source: GreenBiz - Until very recently, most CFOs viewed sustainability as someone else’s job — a matter of compliance or philanthropy unrelated to the pressing concerns that typically keep financial executives up at night.

Sustainability Is Not a Club
(Monday - April 13, 2015)
Source: TriplePundit - Those in the seafood industry furthest along the path to sustainability must never become the elite. Sustainability is not a club one joins. It is not an award one wins or a crown one wears. Sustainability must be nothing more...

H&M’s “sustainability” report hides the unsustainable reality of fast fashion
(Monday - April 13, 2015)
Source: Quartz - On April 9, H&M released its annual sustainability report for 2014. The document details—at great length—how the company is implementing more eco-friendly practices in its supply chain and stores to reduce the harm it causes the...

Fast-food giants clogging up sustainable palm-oil progress
(Monday - April 13, 2015) Associated Profiles : Union of Concerned Scientists
Source: Edie - The Union of Concerned Scientists (UCS) has ranked the 10 largest palm-oil users in three sectors fast-food, packaged food and personal care. Despite broadly positive results 21 companies out...

David Blood Makes the Business Case for Sustainable Investing
(Sunday - April 12, 2015) Associated Profiles : California State Teachers’ Retirement System
Source: Institutional Investor - Along with a growing number of other institutional investors, West Sacramento based CalSTRS has voiced concerns about the energy industry's potential problem of stranded assets...

ESG Issues & Players

BP shareholders vote overwhelmingly in support of disclosure on climate change risks
(Friday - April 17, 2015)
Source: Financial Post - LONDON — BP shareholders voted overwhelmingly on Thursday to publish regular updates on how its strategies were affecting climate change from next year, making it one of the first global oil companies to disclose such details.

Why Is The US West Drying Out? The Answer May Lie In The Pacific Ocean
(Wednesday - April 15, 2015)
Source: Tech Times - The droughts afflicting states in the Western U.S., as well as a general drying out that began with the turn of this century, has its roots even further west — in the winds of the Pacific Ocean, researchers say.

Top 20% of Earners Pay 84% of Income Tax
(Wednesday - April 15, 2015)
Source: Wall Street Journal - The individual income tax remains the most important levy in the U.S., providing nearly half of federal revenue. This is unusual: On average, developed nations get only one-third of their revenue from income taxes. Typically they...

Saudi Arabia’s Plan to Extend the Age of Oil  
(Monday - April 13, 2015)
Source: Bloomberg - Last fall, as oil prices crashed, Ali al-Naimi, Saudi Arabia’s petroleum minister and the world’s de facto energy czar, went mum. He still popped up, as is his habit, at industry conferences on three continents. Yet from...

Asset Managers, US Pension Funds, Sovereign Wealth Funds

 NZ Super Fund tries to claw back lost $200m
(Monday - April 13, 2015) Associated Profiles : New Zealand Superannuation Fund
Source: New Zealand Herald - Court documents filed in England reveal the New Zealand Superannuation Fund has lined up alongside vulture funds and an Indian steel billionaire in a bid to extract itself from a bad $200...

New York Discovers Wall Street Charges Fees
(Friday - April 10, 2015) Associated Profiles : New York City Comptroller’s Office: Bureau of Asset Management
Source: bloombergview.com - Whether those fancy things provide any extra value is, of course, a hotly debated topic. How much do New York City pension funds pay for investment management' Here is a very weird press release...

China: Did We Just Hear The Death Rattle Of The Economy?
(Monday - April 13, 2015)
Source: Forbes - Since last July, when the current bull market began, Shanghai stocks have soared 97.0%. Shenzhen shares during the period are up 95.9%. Tech companies are leading the way, now trading around 220 times profits.

Goldman Sachs Earnings: Impressive Growth All Around
(Friday - April 17, 2015)
Source: The Motley Fool - Goldman Sachs (NYSE: GS ) posted its first-quarter earnings on Thursday, and the numbers look great. The company posted strong improvement in pretty much every aspect of its business, and it handily beat the market's...

Watching the Watchers

Coalition for Urban/Rural Environmental Stewardship
Headquarters: Dinuba, CA

Established: 1997

KEY PARTNERS
Collaborates with many types of organizations, including state university branches, water districts, and state agricultural organizations. Funding and support come from such groups as the Almond Board of California and chemical companies, including Bayer CropScience, Dow, DuPont, and Syngenta.

OVERVIEW/MISSION
The mission of the Coalition for Urban/Rural Environmental Stewardship (CURES) is to “create and deliver science-based solutions and education to ensure that tools to control pests and grow plants are used in ways that protect people and the environment.”

BACKGROUND
The Stewardship is a nonprofit organization, established in 1997 under funding from the Western Plant Health Association.

STRUCTURE
The CURES staff and board work with coalitions that unite “stewardship interests” of a broad variety of stakeholders, including academics, environmental groups, government agencies, and representatives of agriculture.

METHODOLOGIES / OPERATIONS
CURES convenes coalitions that work to develop “science-based solutions to pesticide related problems” through education and training on best practices.

News Sweeps
Ag At Large: Growers grade smart sprayer
(Thursday - October 02, 2014) Associated Profiles : Coalition for Urban/Rural Environmental Stewardship
- The Sentinel - Giles and Daniel Downey; Franz J. A. Niederholzer, farm advisor for Sutter and Yuba counties; and Parry Klassen, executive director of the Coalition for Urban/Rural Environmental Stewardship. Each...

Northern San Joaquin Valley Farmers Eligible for $2.6 Million to Improve Water Quality and Create Habitat
(Wednesday - October 01, 2014) Associated Profiles : Coalition for Urban/Rural Environmental Stewardship
- red Orbit - "Congress is recognizing an important need of specialty crops farmers in Northern San Joaquin Valley," says Parry Klassen, Executive Director of Coalition for Urban/Rural Environmental...

$8M available to farmers for runoff management
(Wednesday - October 01, 2014) Associated Profiles : Coalition for Urban/Rural Environmental Stewardship
- Fresno Business Journal - The Dinuba-based Coalition for Urban/Rural Environmental Stewardship is administering $8 million in grant funding available for Central Valley farmers to prevent harmful runoff from...


These feeds are provided for Accountability-Central in partnership with 3BL Media.  3BL Media distributes press releases, blogs, videos, podcasts, reports, newsletters and more to the growing audience of stakeholders interested in Corporate Social Responsibility (CSR) and Sustainability.  Visit 3BLMedia.com for more.

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Capitalizing on Capital Markets Through ESG – A Commentary This Week on Forbes’ Blog by Chris Skroupa…

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