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Source: Governance & Accountability Institute

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December 1, 2016

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Quo Vadis on Sustainability Issues in 2017 -- As a New Administration & New Congress Come to Town?

Are you holding your breath after the November elections?  Wondering where corporate sustainability or sustainable investing goes from here?  What our public sector positioning may be on issues of importance to the corporate or capital markets communities?

The author of the best seller, "Green to Gold" takes on the Quo Vadis questions regarding sustainability issues as President-elect Donald J. Trump builds and announces his management team, albeit with an unusual method that reminds one of the popular TV show, "The Apprentice."

In the Harvard Business Review, author Andrew Winston posts that "sustainable business" will move ahead with or without the future Trump Administration's support or involvement or interference.  Companies will continue on their sustainability journeys because macro forces are driving the movement, he believes.  And we can move forward even without the Federal government's push (although that support and encouragement is always nice to have as the wind-at-our-backs). 

There are five "mega-trends" at work here, author Winston offers up for us.  For example, if you want to install solar or wind power for your business, as a manager you should be encouraged that the cost to build is down by half or much more from prior levels.  (The wind-at-our-back here of course includes the very important public sector support for development of non-fossil-fuel generated power.)

Second, climate change is now well beyond theory, author Winston argues.  The CEO of Kellogg speaking at the Paris COP-21 meetings said for his company, "climate change is mission critical."  Many other CEOs are publicly or privately thinking/expressing the same thoughts.  Climate-related weather shocks can seriously damage crops -- and ripple through food, apparel, fuel and other industrial production.

Third, consider the huge Millennial generation -- soon to be half of the global workforce -- these men and women are not retreating from the sustainability advances made to date.  Almost 9-out-of-10 of this demographic cohort believes (Winston explains to us) that "...the success of a business should be measured in terms of more than financial performance..."  These Millennial generation men and women are rising fast to positions of power in industry (and in government, finance, NGO management, etc.). They are taking us in a different direction on key societal issues.

Number Four on his list: Social media today can quickly create fame and fortune -- or disaster -- for the company on the right side or the wrong side of important societal issues -- like responsible management of supply chains, and acting responsibly on key social and environmental issues that our society now deems to be important (especially for popular brand marketers).

And then there is the breadth and depth of many governmental commitments for -- and action taken on -- climate change issues. There was great momentum coming out of the Paris meetings in Fall 2016 and on to the Morocco meetings concluded just days ago.  We are moving inexorably toward a low-carbon economy and many global public sector leaders -- unlike the American President-elect's campaign comments -- do not believe "all of this" is a hoax (that is, generated by China). Indeed, as explained in our Top Story, even China has clearly delivered the message:  Climate Change, it's not a hoax.

We invite your reading of the HBR commentary by Andrew Winston, and suggest that you share it with your colleagues (and especially the "anxious" folks in your circle). Andrew Winston is on target with his projections that the business community will continue to act even if the new Trump Administration does not take positive positions on critical societal sustainability issues.

In this, our weekly newsletter for you, we have added a section with an eye on sustainability issues, with focus on the November-December-January transition to the new executive branch leadership and the coming of the 115th U.S. Congress.  A great deal is at stake on decisions to be taken on many of our societal issues.  We are presenting for you a brief selection of the many news stories and commentaries being published that can help us to understand what may/or may not be in store -- regarding the decisions and actions to be taken after January 20, 2017 with regard to sustainability issues.  

 

Top Story

Sustainable Business Will Move Ahead With or Without Trump’s Support
(Monday - November 21, 2016)
Source: Harvard Business Review - Will the seismic shift in U.S. political leadership have a chilling effect on corporate action around environmental and social issues? The short answer is no.

Sponsored Message

 

Sustainability in Focus

Source: The Diamondback - Our nation remains divided on many important national issues, and much is uncertain, but amid the turbulence, the University of Maryland has remained faithful to one key commitment: sustainability.

Report indicates campus sustainability efforts are working
(Tuesday - November 22, 2016)
Source: record.umich.edu - Faculty, staff and students have made progress with waste prevention, promoting sustainable food and participating in activities like the Planet Blue Ambassadors program, based on the latest report of the U-M Sustainability...

Next steps for a sustainable European future - European action for sustainability: Questions & Answers
(Wednesday - November 23, 2016)
Source: European Commission - Society at large needs to ingrain sustainability as a guiding principle in the many choices that each citizen, company and civil society makes every day. This Communication joins up the SDGs of the 2030 Agenda to the European...

Finding the value in Environmental Sustainability
(Friday - November 25, 2016)
Source: Scoop - Improved environmental performance to provide long-term strategic value for New Zealand’s agri sector– industry report

On "A brief history of Sustainability"
(Friday - November 25, 2016)
Source: Treehugger - In 1994, John Elkington coined the term “triple bottom line“ to clarify sustainability as the integration of social, economic, and environmental value. I can think of nothing of value that doesn’t fall into one or more of these...

What's next for sustainability career hiring trends
(Friday - November 25, 2016)
Source: GreenBiz - I have observed a general uptick in sustainability jobs, especially in a couple of areas. I’ve noticed more specialist sustainability roles posted this year. For instance, rather than just sustainability manager roles, I’m seeing...

New funding platform launched for sustainability projects in Asia
(Friday - November 25, 2016) Associated Profiles : Jantzi-Sustainalytics, Sustainalytics
Source: Eco-business - and sustainability research and analysis company Sustainalytics. SFC Asia will begin welcoming online applications once its website goes live in December. Tony Gourlay, CEO of Global Initiatives behind the...

 

ESG Issues & Players

New Study Nails Elusive Link Between Fracking & Earthquakes
(Tuesday - November 22, 2016)
Source: Clean Technica - The natural gas picture just got a little more complicated last week, when researchers at the University of Canada released a study linking clusters of earthquakes in western Canada to oil and gas fracking operations. The finding...

Global wealth study reveals ‘shockingly’ high levels of economic inequality
(Wednesday - November 23, 2016)
Source: MarketWatch - According to the Credit Suisse Global Wealth Report, a mere 0.7% of the global population owns nearly half the world’s wealth. At the other end, 73% of the popular have less than $10,000 each.

Exploring the materiality of ESG data, part two
(Friday - November 25, 2016)
Source: Environmental Finance - But taking the Morningstar Sustainability business approach and obviously stamping funds based on â?? and they have one version of data from the Sustainalytics database and they have their own...

Asset Managers, US Pension Funds, Sovereign Wealth Funds

Public pension funds and socially responsible investing: Bad mix?
(Tuesday - November 22, 2016)
Source: Benefits Pro - A new brief from the Center for Retirement Research at Boston College says that environmental, social and governance (ESG) screening of investments in public pension plans can have a negative impact on returns and fiduciary...

World’s Biggest Pension Fund Gains $21 Billion as Stocks Rally
(Friday - November 25, 2016)
Source: Bloomberg - The world’s biggest pension fund posted its first profit in four quarters as stocks rebounded, providing some respite for the Japanese state money manager after critics lambasted it for taking on too much risk.


Trump's Transition -- And Potential
Impacts on Sustainability

A Bleak Outlook for Trump’s Promises to Coal Miners
(Monday - November 21, 2016)
Source: CNBC - Donald J. Trump made coal a centerpiece of his campaign, holding rousing rallies with miners in hard hats, who he said had been neglected under eight years of the Obama administration. The strategy paid off, helping him score...

Source: Green Biz - During the presidential campaign, then-candidate Donald Trump called climate change a hoax, threatened to dismantle the Environmental Protection Agency, committed to easing restrictions on drilling and mining on federal lands...

Donald Trump Outlines Policy Plans for First 100 Days in Office
(Tuesday - November 22, 2016)
Source: Time - Donald Trump released a video on Monday to detail his policy plans for his first 100 days in office, including withdrawing from the Trans-Pacific Partnership trade deal.

Trump Says He’s Keeping an ‘Open Mind’ on Pulling Out of Paris Climate Accord
(Wednesday - November 23, 2016)
Source: Fortune - U.S. President-elect Donald Trump said on Tuesday he was keeping an open mind on whether to pull out of a landmark international accord to fight climate change, in a softening of his stance toward global warming.

Associated Profiles : Bloomberg New Energy Finance
Source: Industry Week - Even without the Clean Power Plan, Bloomberg New Energy Finance forecasts that wind and solar energy will grow 33% over the next two years, adding 40 gigawatts. A lot of that will be driven by...

 

Thought You Might Be Interested...

America – The Great Melting Pot – The Crucible
(Monday - November 21, 2016)
Source: A commentary by Hank Boerner - At least until recently, many of us took pride in the idea that our great United States of America was “a melting pot,” where immigrants from many nations, of varying religious and ethnic backgrounds, could figuratively “come...

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