BSR Insight

A Weekly Newsletter for BSR Members | August 21, 2012

   
 

In This Issue

Editor's Note

Attracting Long-Term Investments in Sustainability

It may seem unlikely in our age of rampant short-termism, but a growing number of asset owners and investment managers are focused on long-term investing for sustainability. Mainstream investors like the California Public Employees’ Retirement System (also called CalPERS) believe that a company’s performance on environmental, social, and governance metrics are good predictors of its overall performance for the long term.

This week, BSR’s Managing Director Laura Gitman and Hélène Roy outline what’s driving this trend, why long-term investors are valuable to companies, and four ways companies can attract some of the estimated US$32 trillion available.

Speaking of financial opportunities, it appears there is also some in e-waste: An estimated 320 tons of gold, or US$16 billion, go into electronics each year. But only 10 to 15 percent of gold from e-waste is recovered.

Finally, we share highlights from a recent BSR report on the opportunities for business to help grow China’s field of social entrepreneurship—which has great potential to help address social and environmental challenges that the government has not been able to solve.


Four Ways to Attract Long-Term Investors Department Icon

In Depth

Four Ways to Attract Long-Term Investors

Laura Commike Gitman, Managing Director, Advisory Services, BSR, and
Hélène Roy, Intern, BSR

Even as a relentless focus on short-term gain pervades our economy, asset owners and investment managers are increasingly embracing sustainable investing. Here's how to access some of the estimated US$32 trillion available.

Read more 


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Quick Hit

Precious Waste: Finding Gold in Discarded Electronics

By Julia Robinson, Communications Associate, BSR

 

waste

 

An article by United Nations University highlighted the opportunity for recovering potentially billions of dollars' worth of precious metals from discarded electronics. As global demand for electronics rises and technological advances make product life cycles shorter and shorter, better solutions for recovering and reusing e-waste materials become more pressing.

An estimated 320 tons of gold, or US$16 billion, go into electronics each year. But only 10 to 15 percent of gold from e-waste is recovered. There are more precious metals in electronics than in traditionally mined ore—some estimate that this source is 40 to 50 percent richer—and they can pose environmental hazards if left in landfills.

Apart from designing electronic products that are more durable and "upgradeable," governments and companies should implement more robust recycling programs and end-of-use product services, which will result in more sustainable consumption, better environmental conservation, and economic benefits. BSR's Marshall Chase offered more solutions to product obsolescence and e-waste in an Insight article late last year.


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Spotlight

How Business Can Help China’s Emerging Social Enterprises

By Julia Beier, Associate, Advisory Services, BSR

Social entrepreneurs—who can help address a country's social and environmental challenges—have gained ground in Western countries, but the sector is still young in China.

Social entrepreneurship nonprofit FYSE's "2012 China Social Enterprise Report," launched last week with BSR and the nonprofit Unltd, found that 54 percent of Chinese social enterprises started only within the last three years. Many are struggling to grow because they lack funding and resources, trust from the public and potential donors, and supportive legislation (it is notoriously difficult to register nonprofits in China).

Corporations can help Chinese social enterprises by offering:

  • Employee expertise: Companies can encourage their employees to share their skills and experience with social entrepreneurs, who may need help with marketing, sales, or formulating a business plan, for example.
  • Donations and collaboration: Companies can provide in-kind donations or corporate space, as well as work with social entrepreneurs to cross-brand products and create cause-related marketing.

To learn more about applying corporate expertise to nonprofit models, read a new report from BSR's CiYuan initiative.