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Harvard Business Review – Increased Focus on Corporate Sustainability, Convening CEOs for Critical Conversations on the Theme Harvard Business Review is one of the most powerful of external influences for the corporate C-suite. Ideas, concepts and themes appearing in the pages (digital and print) of HBR create important initiatives in American companies. HBR editors are focusing these days on corporate sustainability in various dimensions. Remember the debut of the “Shared Value” by Professor Michael Porter? Many first saw that concept introduced in the HBR pages. A current project of HBR is the “Future Economy Project,” looking at business sustainability agendas and engaging CEOs for discussion on the theme. A “virtual” roundtable with CEO’s was conducted to identify major themes of interest or concern to the business leaders. Participants in the dialogue included Andrew Liveris, Dow Chemical Company; Paul Polman, CEO of Unilever; Doug McMillon, CEO, Wal-Mart; Henry Paulson, former Secretary of the Treasury and Chair, Paulson Institute; Marne Levine, COO, Instagram/Facebook; Dominic Barton, Global Managing Partner, McKinsey & Co. The discussion was led by three leading academics and an industry expert; highlights are presented for you in the Top Story in this issue. Here are a few top lines for you: Paul Polman/Unilever saw the challenge of corporate sustainability as more clearly defining the “tactical” and “systemic” issues. And defining the terminology. On tactics: labeling claims need to be clear about what standards to develop, and disclosure and materiality. Systemic: system change, moving from short-term focus in politics and finance, and changing consumer preferences & habits. These need to change at the systems level; the first step is identifying the problem. Several of the CEOs said that companies are “becoming gradually more sustainable,” not at the speed needed, or the scale needed in the view of the session conveners. Climate change is seen by CEOs in the context of minimizing risk; when more CEOs see this as an opportunity to drive innovations that are both financially and socially beneficial, “that will be interesting”. CEO Andrew Liveris of Dow talked about his firm’s design of new and more sustainable product lines. A shared observation: Looking through the risk lens, if more companies did that, more product innovation and investment in more-resilient operations and supply chains would result. This can happen in different ways, such as value added by mitigation of 10% of carbon footprint. An interesting part of the discussion was around the “ah-hah” moment that often occurs. The transformation begins when there is a “spark” and things are seen in different ways. The former CEO of Rainforest Alliance described that when corporate managers went into the field to see sustainability forestry, or sustainable farming, they are no longer “far removed” from it. They see sustainability can be life-changing. The Millennial generation has a different view of business in society; more senior managers have to take their views into consideration. Along these lines, getting “others’” point of view is important. There has been a “sea change” in company-NGO engagement. Company and NGO goals, expectations and parameters can be better aligned. A common language can evolve. And investors’ points-of-view are important to the CEOs. Unilever’s Polman and McKinsey CEO Dominic Barton talked about shifting their investor base to attract more investors who really care about long-term value creation. But, the current emphasis on short-term in the investor universe is a challenge to address. On long-term value: One-in-five dollars in the USA is in ESG investments. Investors are interested in sustainability. This creates an opportunity for companies. One of the focal points for companies could be the Sustainable Development Goals as roadmap for companies – leveraging the SDGs could help to create more systemic change. A theme of the HBR: “We believe in climate change and we’re taking action.” This was in part stimulated by the U.S. government’s withdrawal from the Paris Climate Agreement. “The upside of the sustainability agenda is clear,” the project managers say. The pursuit of sustainable processes up and down the supply chain can translate into immediate savings (one example). So, too, reducing energy use and embracing renewable energy. There’s more information for you at: https://hbr.org/2017/08/future-economy The academics convening the discussion above were: Michael Toffel and Rebecca Henderson at Harvard Business School; Tensie Whelan, NYU Stern School of Business; and, Andrew Winston of Winston Eco-Strategies.
Top Stories This Week... FUTURE THINKING
About Sustainability: Progress Is Being Made Joseph Mariathasan: Sustainability presents an opportunity for investors The Impact of Trust on Financial Returns: Special Report Beyond Bonn: Eco-Social Policies For Social Justice And Environmental Sustainability Consumption is the bottleneck for sustainable development Sustainable Reporting: Lessons From the Fortune 500 Cornell Presents the 2017 Center for Hospitality Research Sustainability Roundtable Summary How to maximize the impact of corporate sustainability goals Source: Morningstar - It's complicated, but sustainable funds more than hold their own on a risk-adjusted basis. This Was the Year Sustainable Fashion Got Sexy—Read the Highlights Here How to design sustainability into an architectural practice There is Always Focus on Sustainability in Food & Ag France dominates this year’s Food and Farming Sustainability Index Commitment to sustainability: Nothing new for ranchers Our Focus This Week on A Range of ESG Topics & Issues -- Things to Think About... Source: Investment News - Women and millennials are responsible for the doubling of ESG assets to $8.1 trillion worldwide since 2014 — and you can expect that trend to continue. What's The Difference Between Business Etiquette And Business Ethics? Senate panel moves forward with bill to roll back Dodd-Frank
Allstate Enhances Sustainability Reporting Mars to boost $1bn sustainability plan with ‘sense of urgency’ Pfizer denies fumes from Viagra factory are having an arousing effect on locals in Cork village Google wants more humans to help solve the problem of child exploitation on YouTube Senior Volkswagen Executive Sentenced In Diesel-Emissions Scandal News & Opinion: Asset Managers, US Pension Funds, Sovereign Wealth Funds First tax havens blacklist published by EU Associated Profiles : 1Malaysia Development Berhad (1MDB, formerly known as Terengganu Investment Authority) Source: Asian Correspondent - During his speech at the Global Forum on Asset Recovery in Washington DC on Monday, Sessions said that action was related to the 1Malaysia Development Berhad sovereign wealth fund. SEE ALSO: 1MDB: Justice Dept probes US rap star... Public Pension Funds' Anti-Fossil Fuel Activism Raises Risks For Beneficiaries
Trump Administration News / Affecting Directions on Governance and ESG Consumer Bureau’s New Leader Steers a Sudden Reversal |
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G&A Institute Sustainability Update™ AT THE NET IMPACT CONFERENCE 2017 – PATH TO PURPOSE _________________________________________
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