BSR Insight

A Weekly Newsletter for BSR Members | January 11, 2011

   
 

In This Issue

Editor's Note

How Sustainability Will Shape Business in 2011

For our first Insight of 2011, BSR President and CEO Aron Cramer shares his perspective on trends that will likely shape business in the year—and years—to come. Highlighting five developments we can expect to emerge as priorities in sustainable business, he reminds us that we need to pay most attention to the underlying structural changes taking place: "2011 will likely deliver 'surprises' that are in fact the immediate manifestations of long-term trends. And all of these trends show just how central sustainability is to the business agenda."

We also discuss the results of the Carbon Disclosure Project's recent survey on corporate disclosure of water-related strategies and management systems that show that water remains a significant and urgent risk and opportunity for most businesses.

Finally, we highlight the recently launched Responsible Sourcing Network, a multi-stakeholder effort to combat slavery and other human rights abuses in corporate supply chains.

What to Look for in 2011 Department Icon

In Depth

What to Look for in 2011

By Aron Cramer, President and CEO, BSR

As we enter 2011, and the 2008 market meltdowns recede from view, the world is now shifting its attention to structural changes that are shaping the business environment. Five trends in particular point to an even greater focus on sustainability as one of the defining characteristics of business success in the year to come.

Read more →
Icon

Spotlight

Responsible Sourcing Network Helps Companies Combat Human Rights Abuses in Supply Chains

Corporate accountability NGO As You Sow recently launched the Responsible Sourcing Network (RSN) in an effort to combat slavery and other human rights abuses in corporate supply chains. RSN provides a space for companies, investors, NGOs, and other stakeholders to share best practices and take coordinated action. RSN is presently working to end forced child labor in Uzbekistan's cotton industry, and addressing the conflict minerals trade in the Democratic Republic of the Congo—where profits help fuel one of the world's bloodiest conflicts.

In May 2010, BSR and RSN co-hosted a Conflict Minerals Forum to understand the issues and lay the groundwork for multi-stakeholder discussions and recommendations for the draft Securities and Exchange Commission conflict minerals reporting rules. You can also read a summary from the BSR Conference 2010 session on this topic.

In the coming months, BSR will host a Sustainability Matters webinar to help update our members on the ongoing efforts to address the challenges associated with conflict minerals. Please let us know what specific topics you would like to discuss at this event by contacting Marshall Chase.

Icon

Toolbox

Companies Report on Water-Related Risks and Opportunities

The Carbon Disclosure Project's (CDP) latest report summarizes the results of its first annual water disclosure questionnaire that was distributed to 302 of the world’s 500 largest companies in the FTSE Global Equity Index Series. The survey asked companies for information about their water strategies and management plans, water-related risks and opportunities, and water use within the context of local scarcity or abundance.

Highlights from the report include:

  • Water-related risk remains an urgent challenge for business. More than half of the physical, regulatory, or other risks identified were classified as either current or near-term (one to five years), and 39 percent of companies have already experienced operational disruptions such as drought or flooding, declining water quality, higher water prices, and fines and litigation related to pollution incidents.
  • While 96 percent of respondents are aware of their own operational water risks, only 53 percent could identify risks in their supply chains.
  • Sixty-two percent of respondents identified significant water-related business opportunities: improving water-management practices to reduce operating costs, and meeting the growing demand for water infrastructure to support growing populations and to adapt to climate change.

For information related to reporting on water-related risks, read our session summary from the BSR Conference 2010, or contact Linda Hwang.