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Source: Governance & Accountability Institute

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December 11, 2015

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Profile: American Cleaning Institute – and the ACI Charter for Sustainable Cleaning

G&A Institute interviews American Cleaning Institute’s Brian Sansoni & Melissa Grande…our Top Story this week.
 
As we monitor U.S. companies’ disclosure and periodic reporting on their respective sustainability journeys, we are seeing that companies have both expanding and narrowing choices. Expanding, more U.S. companies either begin or steadily expand disclosure and reporting on their sustainability journey, and widen the range of effective means of telling the story of their corporate responsibility activities.

Narrowing in the sense that the choice of standards more often now means that the Global Reporting Initiative (GRI) framework - now in its fourth generation (“G4?) since the introduction of the GRI approach in 1999-2000 - is considered by managements to be the de facto global standard for their company reporting. Consider: There are now 30,000 sustainability reports in the GRI database - two thirds of the reporting organizations published GRI Reports.  The tally for U.S. company reports in the GRI global database has been dramatically expanding over the past few years.

And what are the preferred means of expanding corporate reporting? We are seeing the choice of frameworks and standards and other means of corporate sustainability reporting steadily expanding.  The GRI report is a foundation activity, and companies embrace additional choices of reporting standards, frameworks, industry codes of conduct, third party guidelines, the templates of third party requests for information such as CDP and RobecoSAM, and much more. All of these choices serve to take sustainability / responsibility / citizenship / environmental performance reporting far beyond choices for sustainability or CR reporting activities a decade ago.

It’s clear:  Many U.S. corporate managements and boards recognize the importance of sustainability and CR reporting and are devoting the necessary [human and financial] resources to the task.  As the exclusive data partner for the United States of America, the United Kingdom and the Republic of Ireland for the GRI, the G&A Institute team carefully examines each corporate and institutional report published in the three major business centers. In our conversations with corporate sustainability managers, we discuss the range of reporting choices that their companies have, and the effort that it takes to assemble the data and narrative needed for more compelling story-tell – and effective reporting to meet stakeholder needs.

For companies just beginning the reporting stage:  The bar is constantly being raised by (1) the industry peers in their reporting; (2) the increased demand of the third party requests for information; (3) the third party frameworks available for reporting, such as the segue from GRI G3.1 to G4 (all GRI reports now must be G4-compliant after a 2 year grace period); (4) the demand by major customers of their supply chain partners is steadily expanding beyond “simple data sets,” to include requests or strong suggestions that suppliers sign on to pledges, codes, etc.

In response, we see a growing number of global and U.S. industry associations and trade groups helping their corporate members understand key sustainability issues, so that companies can better map materiality for reporting; better understand industry stakeholder expectations; help member companies align strategies, activities and programs, third party engagements, and disclosure and reporting to meet the ever-expanding stakeholder and shareholder expectations. Among these industry efforts are industry membership organizations as Automotive Industry Action Group(AIAG) and theElectronics Industry Citizenship Coalition(EICC).

G&A’s Sustainability Update blog this week tells the story of a U.S. industry association with well-known names of member companies – this is the American Cleaning Institute.  We spoke with Brian Sansoni, VP-Sustainability Initiatives, and Melissa Grande, Senior Manager-Sustainability Initiatives.  They explain the importance of the ACI’s Charter for Sustainable Cleaning for member companies, the industry, and for B-to-B and consumer markets for member companies’ products.

Member companies of ACI include American enterprises such as Church & Dwight, The Clorox Company, Ecolab, Huntsman, International Fragrances & Flavors, P&G, and SC Johnson; and, non-US companies BASF (Germany) and Farabi Petrochemicals (Saudi Arabia).  (The complete list of companies signing on the ACI Charter for Sustainable Cleaning is in our profile.)  We invite you to read the American Cleaning Institute story in our Sustainability Update blog – and sign on to receive new posts on a timely basis.

Top Stories of the Week

U.S. Industry & Trade Associations Encourage Corporate Sustainability — Today, the American Cleaning Institute is in Focus
by Hank Boerner – G&A Institute Chairman
One large industry-focused effort we focus on today organized resources to develop a charter to provide a common, voluntary approach to promote and demonstrate continual improvement in the industry’s sustainability profile is that of the cleaning (products & services) industry — the American Cleaning Institute (ACI).

Special Report on Paris Climate Conference
This past week heads of state and country representatives flocked to Paris under extraordinary security to meet on the "future of the world."  The following are some of the articles that reflect the tone, urgency and optimism of this historic conference.

Prince Charles opens Paris climate talks and calls on world leaders to act now
(Monday - November 30, 2015)
Source: The Guardian - Prince of Wales calls climate change the greatest threat facing humanity and urges leaders to protect the planet for future generations
 
Primer: The Paris Climate Summit
(Monday - November 30, 2015)
Source: US News - Tens of thousands of delegates and world leaders from nearly 200 nations will be descending on Paris on Monday where, for the next 12 days to two weeks, they'll be hammering out an international climate agreement – one experts...

A Path for Climate Change, Beyond Paris
(Tuesday - December 01, 2015)
Source: New York Times - The pledges that countries have signaled they will make over the next two weeks in Paris to cut emissions will inevitably fall short of what is needed to solve the problem of climate change.
 
With climate at 'breaking point', leaders urge breakthrough in Paris
(Tuesday - December 01, 2015)
Source: Reuters - World leaders launched an ambitious attempt on Monday to hold back rising temperatures, with the United States and China leading calls for the climate summit in Paris to mark a decisive turn in the fight against global warming.

World headed toward 'suicide' if no climate agreement: pope
(Tuesday - December 01, 2015)
Source: Reuters - The U.N. climate conference in Paris is most likely humanity's last chance to thwart global environmental disaster, Pope Francis said on Monday, warning the world was "at the limits of suicide".

After leaders’ rhetoric, climate negotiators start work on deal
(Wednesday - December 02, 2015)
Source: Reuters - With encouragement from 150 world leaders ringing in their ears, government negotiators in Paris were on Tuesday left to turn the rhetoric into reality and agree on a draft text of a global deal to slow climate change

Paris Has to End with a Firm Decision
(Thursday - December 03, 2015)
Source: Huff Post - The global average surface temperature in 2015 is likely to be the warmest on record and to reach the symbolic and significant milestone of 1° Celsius above the pre-industrial era, according to the World Meteorological...

Paris climate talks: what difference will temperature rises really make?  
(Friday - December 04, 2015)
Source: The Guardian - Negotiators in Paris are trying to craft a deal at the UN climate talks that will keep global temperature rise below 2C. But what does that mean in reality - and what difference will a couple of extra degrees really make?


Sustainability in Focus

Much Ado About Sustainability: Is it Time to Stop Sensationalizing and Start Simplifying the Solution?
(Wednesday - December 02, 2015)
Source: Huff Post - Americans are tireless talkers. Let's face it, we like to pontificate. What's more, we love to debate. We are drawn deep into the drama and entertainment of sound bites, gotcha moments, and sensationalized current affairs....

Sport industry an unlikely ally in environmental sustainability
(Monday - November 30, 2015)
Source: Phys.org - When it comes to leadership in environmental sustainability, the sport industry might not immediately come to mind. However for Dr Sheila Nguyen, Deakin University sport for social change expert, they are a perfect ally. ...

DuPont Commits $10B Investment in Sustainable Food R&D
(Monday - November 30, 2015)
Source: Just Means - According to the Food and Agriculture Organization (FAO), the world has the capacity to produce enough food to feed everyone adequately. However, nearly 800 million people still suffer from chronic hunger, despite the progress...

We can achieve sustainability – but not without limiting growth
(Monday - November 30, 2015)
Source: The Conversation - In a recent article on The Conversation, Steve Hatfield-Dodds argued that sustainability was possible in Australia without sacrificing economic growth.

Managing costs critical to achieving sustainability
(Monday - November 30, 2015)
Source: NewsDay - Profitability is, thereby, determined by deduction of costs from the sales, thereby, anchoring procurement to be the undisputable driver of competitiveness and sustainability...

'We can't go on as we are': why sustainability is the big issue of our time
(Tuesday - December 01, 2015)
Source: The Guardian - Businesses, alongside governments and citizens, will lead the way towards a more equitable, sustainable future. Along with our UK and US counterparts, GSB Australia will investigate the social and environmental impact of business...

Sustainability is Reaching New Heights
(Wednesday - December 02, 2015)
Source: Clean Technicia - Energy conservation and sustainability is becoming more and more important in this ever evolving world. Switzerland is one country that is making significant investments in being environmentally-friendly and energy-conscious...

Sustainability driving foodservice packaging
(Wednesday - December 02, 2015)
Source: Packaging Digest - The 2015 Trends Report from the Foodservice Packaging Institute, Falls Church, VA, highlighted industry opinions that focused predominately on environmentally friendly packaging and customization techniques to differentiate...

UNEP to Companies: Time to Raise the Bar on Sustainability Reporting
(Thursday - December 03, 2015)
Source: Sustainable Brands - Corporate sustainability reporting desperately needs to up its game in order to align company-level sustainability performance with the broader systems-level ambitions of the 2030 Agenda for Sustainable Development and COP21, the...

How Dow educates future sustainability leaders
(Thursday - December 03, 2015)
Source: Green Biz - More than 2.5 billion people lack access to proper sanitation. By 2030, the United Nations estimates that 40 percent of the world’s population will lack adequate housing. By 2050, global energy use is projected to grow by...
 
The State of Industrial Sustainability
(Thursday - December 03, 2015)
Source: Automation World - Because attention to sustainability seems to ebb and flow, Automation World is taking a closer look at how industry is - or isn’t - addressing various sustainability issues...

Developing countries need more support in sustainability quest
(Friday - December 04, 2015)
Source: The State Press - Hundreds of political officials, government representatives and climate experts are in Paris debating how to reduce greenhouse emissions worldwide. The circulating rhetoric signals a common understanding amongst representatives...

ESG Issues & Players

Solar, wind power output to surpass shale in five years, says Goldman report
(Tuesday - December 01, 2015) Associated Profiles : Goldman Sachs - Sustain
Source: pv-magazine.com - The report, titled The Low Carbon Economy and produced by Goldman Sachs environmental division GS Sustain, expects a wider transition towards greener and cleaner technologies over the next decade, including LEDs...

Why some Americans remain skeptical about climate change
(Wednesday - December 02, 2015)
Source: CS Monitor - A network of conservative donors and interest groups in the US form an intricate ecosystem effective at converting dollars to public doubts about global warming...

Semi-annual Changes to the NASDAQ OMX CRD Global Sustainability Index
(Thursday - December 03, 2015)
Source: NASDAQ OMX Group, Inc. & CRD Analytics - The NASDAQ OMX Group, Inc., and CRD Analytics have announced the results of the semi-annual re-ranking of the NASDAQ OMX CRD Global Sustainability Index, which became effective prior to market open on...

Asset Managers, US Pension Funds,
Sovereign Wealth Funds

Market Structure Map - Dollars and Sense  
(Thursday - December 03, 2015)
Source: Tim Quast, president, ModernNetworks IR LLC - I looked back at what we wrote Dec 2, 2008. It was two weeks before Madoff (pronounced “made off” we’d observed bemusedly) became synonymous with fraud. Markets were approaching ramming speed into the Mar 2009 financial-crisis...

New York state pension fund hit by volatile markets
(Wednesday - November 25, 2015) Associated Profiles : New York State Common Retirement Fund
Source: Reuters - The New York State Common Retirement Fund fell 4.13 percent in the second quarter of its 2015-2016 fiscal year, which ends on Sept. 30, the state's comptroller's office said. The fund had a value of $173.5 billion at...

Super Fund and ACC should divest for Paris - Greens
(Friday - December 04, 2015) Associated Profiles : New Zealand Superannuation Fund
Source:   Voxy - The New Zealand Superannuation Fund is worth $29.8 billion and the ACC Fund is worth approximately $27 billion. They had around $140 million each invested coal, the dirtiest and most outdated fossil fuel, as at May 2015...

Check It Out...


G&A Institute Sustainability Update
Informative, insightful, thought provoking
Governance & Accountability Institute's blog focusing on the sustainable world evolving daily before our eyes.  Read it, absorb it, question it and challenge. Recent posts:

Reporting 2025 – Perspectives: Interview with Kumi Naidoo, International Executive Director, Greenpeace

Are Public Companies Including Sustainability Information In The Traditional Financial Communications Channels?

Reporting 2025 – Perspectives: ‘Shaping the future of sustainability’ – a highlights video from the Sustainability and Reporting 2025 Forum held 21 October 2015 in Rome, Italy

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\It is always helpful to know what peers and competitors are doing in certain practices -- what are the best practices of investment and industry peers in terms of transparency, disclosure and structured reporting on their sustainability performance?  What story do peers tell of their sustainability journey -- the strategies adopted, internal organization for success, implemented programs and initiatives, the third party recognitions they earned?  What is the story being told through their disclosures and reporting of the success of the sustainability journey?  Learn more About G&A's Competitive Benchmarking Analysis

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