BSR Insight Articles About Strategy & Integration

Top Global Risks of the Next Decade

According to the World Economic Forum's "Global Risks 2011" report—which analyzes the global risk landscape in the coming decade—economic disparity and global governance failures are the two most significant risks given their high degrees of impact and interconnectedness. The report also identifies three main clusters of risks: the "macroeconomic imbalances" nexus (currency volatility, fiscal crises, and asset price collapse); the "illegal economy" nexus (state fragility, illicit trade, organized crime, and corruption); and the "water-food-energy" nexus (rising global population and resource shortages). Additionally, the report includes a series of risk-response strategies that can help all stakeholders take advantage of opportunities for innovation that emerge from risk mitigation. Read more →

Posted: February 14, 2011 | Topics: Strategy & Integration

Trends in Sustainable Investment

Xin Zhuo, Former Manager, Advisory Services Laura Gitman, Managing Director, Advisory Services

Despite the recent economic downturn, sustainable investment is extending beyond the United States and Europe, and into countries where it was previously not widely practiced. Nearly one out of every eight U.S. dollars under professional management in the United States is represented by socially responsible investment (SRI) assets. SRI approaches integrate social and environmental criteria into investment decisions with the goal of aligning financial activities with social and environmental objectives, values, or beliefs, and can include the incorporation of environmental, social, and governance (ESG) criteria by money managers, shareholder advocacy, and community investment. According to a 2010 report by the Social Investment Forum, at the start of 2010, professionally managed assets in the United States following SRI strategies amounted to US$3.07 trillion—an increase of more than 34 percent since 2005, compared to 3 percent growth for total assets under management (AUM). The growth in Europe is even more pronounced, with total SRI AUM increasing 87 percent in just two years, from €2.7 trillion to €5 trillion at the end of 2009, according to Eurosif. Read more →

Posted: February 14, 2011 | Topics: Conflict Minerals, Financial Services, Investor Perspective, Strategy & Integration

Will Old Europe Become the New World of Sustainability in 2011?

Peder Michael Pruzan-Jorgensen, Vice President, Europe, Middle East, and Africa

European companies, government officials, and civil society representatives have tended to scoff at their American cousins’ approach to sustainability, and also at the perceived fundamental disregard for the environment and human rights in BRIC countries. But as we make our way into 2011, I sense a shift in Europe toward a more somber mood, similar to the sobriety that comes to a soccer team the day after an unexpected defeat by a mignon competitor: heads down, feet dragging, and a realization that something different has to be done. Read more →

Posted: February 7, 2011 | Topics: Climate Change, Consumer Products, Energy, Environment, Financial Services, Food, Beverage & Agriculture, Health Care, Human Rights, Information & Communications Technology, Media & Entertainment, Mining, Reporting & Communications, Strategy & Integration, Supply Chain, Transportation, Travel & Tourism

The Business Case for Water

Linda Hwang, Former Manager, Research

Last week, BSR and the World Business Council for Sustainable Development co-hosted a forum in Washington, D.C. on corporate water strategies. JPMorgan Chase's James Fuschetti delivered the event's keynote address on the business case for investing time and resources into activities linked to water stewardship. He noted that having a clear understanding of the physical water risks for global facilities and meeting local stakeholders' expectations for water use are just two benefits of a proactive water strategy. Read more →

Posted: February 7, 2011 | Topics: Strategy & Integration, Supply Chain, Water

Bringing Pro Bono Services to China: Tapping Business to Build NGO Capacity

Adam Lane, Manager, Advisory Services

The nonprofit sector in China is evolving rapidly. To overcome its most immediate challenge—a lack of technical expertise—BSR is supporting a new, cross-sector partnership among a multinational company (HP), a U.S.-based nonprofit (the Taproot Foundation), a local nonprofit (Huizeren), and a local foundation (the Narada Foundation) to harness business’ human capital to build the capacity of emerging nonprofit organizations. This partnership is part of BSR’s CiYuan initiative, (http://ciyuan.bsr.org) a multi-year effort launched in 2010 to support the development of China’s nascent philanthropic sector. Read more →

Posted: February 1, 2011 | Topics: Strategy & Integration