BSR Insight

A Weekly Newsletter for BSR Members | September 7, 2010

   
 

In This Issue

Editor's Note

Expanding Access to Financial Services in ‘Unbanked’ Markets

In 2008, when the Australia-based bank ANZ launched a pilot program to offer a mobile banking and payments service to garment workers in Cambodia, workers in Phnom Penh were sending 5 million remittances annually to family members in neighboring provinces—an informal banking practice that cost them an average of 2.6 percent of the transfer amount each time they transferred money.

Since launching this program, ANZ has registered 150,000 customers in Cambodia who are generating more than 70,000 transactions per month. Now, those transactions cost customers approximately 50 percent less.

In this week's feature article, BSR's Chhavi Ghuliani presents a case study on how ANZ is addressing the challenge of financial inclusion while increasing the company's access to new markets.

We also look at how investors can "decode" the information in the proliferation of CSR reports in China. And we hear from Starbucks' Ethical Sourcing Director Kelly Goodejohn, who attended BSR's recent Energy Efficiency Partnership kickoff in Guangzhou, China.

Addressing Financial Inclusion: How ANZ is Using CSR to Access New Markets Department Icon

In Depth

Addressing Financial Inclusion: How ANZ is Using CSR to Access New Markets

By Chhavi Ghuliani, Manager, Advisory Services, BSR

By aligning its CSR strategy with its business aim to be a super-regional bank in the Asia-Pacific region, Australia-based ANZ is addressing the challenge of financial inclusion while increasing the company’s access to new markets.

Read more →
Icon

Toolbox

Decoding Chinese CSR Reports

By

Between 2005 and 2009, the number of CSR reports released in China went from less than 10 to more than 500. Unfortunately, this increase in quantity has not necessarily been matched by improved quality. Instead of creating valuable new data for investors, the influx of reports may have just created more for investors to (not) read.

BSR's latest Sustainable Investment in China newsletter (Chinese version here) recommends that investors look for the following when assessing the quality of these reports:

  • Disclosure of challenges: Companies that are transparent about challenges—and corresponding solutions—are more likely to have the management culture and level of openness needed to successfully manage environmental, social, and governance (ESG) issues.
  • Link to value: A compelling CSR report will demonstrate how appropriate ESG management contributes to cost savings and revenue generation.
  • Stakeholder input: With an increasingly complex and interconnected set of external factors impacting business performance, regular engagement with key stakeholders is critical. How a company manages stakeholders' input in its report tells investors the level of sophistication.
  • Data integrity: Assurance indicates that a company has a reliable data collection and verification system to ensure integrity and accuracy.
Icon

On the Record

Climate Change and Supplier Energy Conservation

By Ryan Schuchard, Manager, Climate and Energy, BSR

At the recent Energy Efficiency Partnership (EEP) kickoff meeting in Guangzhou, China, 11 companies including Starbucks, HP, and Levi Strauss & Co. gathered with more than 80 of their suppliers to share best practices and trends in energy management. Participants learned how to use energy action plans and take advantage of local service providers like CLP, which has a free energy audit program backed by the Chinese government.

During the opening remarks, Starbucks' Kelly Goodejohn noted the importance of energy conservation to her company:

"Climate change poses a substantial threat to coffee, our core business, and energy management is the most direct thing we can do to stop greenhouse gases. By working with suppliers, we can cost-effectively multiply our impact."

—Kelly Goodejohn, Director of Ethical Sourcing, Starbucks (August 23, 2010)

To learn more about supply chain energy efficiency, read our recent report on opportunities in China, or attend the BSR Conference 2010 session on "Supply Chain Energy Innovation." To learn more about participating in EEP, contact Ryan Schuchard.