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Blog | Wednesday July 12, 2023

How Diversity, Equity, & Inclusion is Gaining Momentum in Asia-Pacific

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In recent years, companies have been facing the evolving challenges of responding to structural and social inequities. As a result, Diversity, Equity, and Inclusion (DEI) approaches are increasingly used as a strategic tool to improve competitive advantage, enhance employee engagement, and create a more supportive and inclusive workplace that values differences. While much of the spotlight has been on the multitude of DEI initiatives in North America and Europe, there is a significant uptick in interest in what DEI means in Asia-Pacific (APAC).

Given the different levels of maturity and ambition of companies and the varying perspectives on DEI across regions, there is no global framework or a “one-size fits all” approach. Since COVID-19 and recent protests around structural racism in North America and Europe, the discourse around DEI has also gained more traction in APAC and has moved the needle to some extent on business awareness, action, and approaches.

Although DEI is becoming a priority for some companies in APAC, the majority is still moving at a relatively slower pace than their North American and European counterparts. This may be primarily due to different cultural and organizational dynamics as well as fewer compliance-related expectations.

At the BSR Asia offices, we have been proactively engaging with our member companies in APAC on understanding DEI priorities. Throughout our engagement, stakeholders often ask: Is DEI in APAC behind, or is it just different? Given our experience, we are leaning towards the latter question. Here are our top three reflections from our engagement with APAC companies on DEI so far:

1. DEI is a relatively nascent topic in APAC but is growing in momentum

The business case for companies demonstrating a clear and actionable commitment to DEI has been discussed at length—whether as a competitive advantage in attracting talent, or that diverse companies are more profitable, innovative, and more likely to exceed financial targets.

For APAC companies, DEI initiatives in APAC have focused on diverse representation and gender-related issues, such as increasing female leadership roles in the workplace. Efforts are often centered on “Diversity and Inclusion” but are now slowly including the concept of ‘Equity’—a pillar that is often overlooked. However, it is evident that the slower pace of change does not necessarily imply a lack of interest or willingness to ramp up efforts to address other dimensions of DEI.

2. Social Norms and Cultural Nuances Shape DEI Priorities

APAC is one of the most ethnically, culturally, and linguistically diverse regions in the world. Against this backdrop, it requires a more nuanced understanding of culturally appropriate DEI approaches. The current landscape varies by country, making the practice of DEI more complex. In contrast, DEI themes and issues of interest in North America and Europe more generally relate to historical and social dynamics, for example, around race, ethnicity, ability, and class.

The fundamental definitions and principles of DEI hold significance and relevance, albeit with a different lens. In APAC, there is an emphasis on collective rights and identities rather than individual rights which can influence how DEI is approached.

Gender inequality in the workplace also remains a key issue in many APAC countries, with women being underrepresented in leadership positions. For example, Japan and South Korea consistently rank lowest in terms of gender equity among leading economies and this gender gap is often a DEI priority in the region. On the topic of LGBTQIA+ rights, recent surveys show that there is more public acceptance of same sex relationships in Singapore and Thailand compared to a few years ago. As of July 2023, Nepal is also on track to be the second country in Asia to legalize same-sex marriage. On the other end of the spectrum, homosexual activity is criminalized by harsh penalties in Brunei.

Public attitudes around other DEI themes are also shifting. For example, in the aftermath of the COVID-19 pandemic, mental health and wellness has emerged as a crucial topic that was once considered taboo. As a result, an increasing number of companies throughout the region are now prioritizing this issue and engaging in more widespread discussions about it.

3. Legal and Regulatory Frameworks in APAC are Still Evolving 

From a legal and regulatory perspective, recent developments have signaled marked progress for inclusion. Even in the absence of robust legislation on DEI disclosures, the business case and stakeholder expectations are still main drivers of DEI in APAC. Australia and New Zealand are at the forefront of gender equity in the region, especially following the introduction of new legislation regarding gender pay gap disclosure.  

The DEI related legislative process may be facing a relatively slower uptake than usual in more conservative societies, and this could potentially be a barrier to progress. However, there have been recent developments which have signalled positive changes in the region. From a corporate governance perspective, Japan revised and added a clause of promoting diversity within its Corporate Governance Code in 2021, requiring companies to establish and disclose policies and goals on diversity. Japan has also recently introduced gender pay gap disclosures for companies. The Hong Kong Stock Exchange and Singapore Stock Exchange have also updated board diversity disclosure requirements for listed companies.  

There seems to be a global shift in the understanding of DEI, however, there is no “one size fits all approach” for APAC and the conversations are always evolving. Though some companies have already taken steps forward by formalizing commitments to DEI, inquiry into how it may be adjusted to suit different contexts is ongoing. To determine appropriate approaches, engagement with our member companies and careful consideration of cultural and social norms will be necessary on a case-by-case basis, though certain challenges, opportunities, and principles may remain constant across the board. 

For more information on how BSR works with companies in Asia Pacific on DEI, please get in touch. 

Blog | Monday August 30, 2021

Sustainable from the Start: Embedding ESG into High-Growth Business Strategy

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We are experiencing a profound shift in stakeholder expectations and business growth strategy: sustainability is more important than ever before. Younger, high-growth companies—those that either are privately held or recently went public—face unique challenges and opportunities as they expand business while also considering environmental, social, and governance (ESG) factors, be it climate change, privacy, diversity, or a range of other material issues. 

Over the past two years, we have hosted quarterly convenings for high-growth companies to share challenges and approaches on a variety of ESG topics. In these meetings, BSR spoke with company sustainability leaders, who shared how their experiences might apply to younger businesses. Based on the outcomes of these discussions, what are the main considerations for a high-growth company at the start of its ESG journey?

First Up: Identify Material ESG Issues

Conducting a materiality assessment is an essential “do this first” step to jump-starting an ESG strategy. A materiality assessment is a widely used approach to help companies develop ESG priorities by understanding the most important topics. It identifies key areas of overlap between enterprise value creation (“impact inwards”) and impact on society and the environment (“impact outwards”).

Materiality can help a young company: 1) align on relative priorities and clarify the rationale; 2) enable better allocation of resources to address priority issues; and 3) communicate more effectively, internally and externally, on the most material issues. 

We explore other key steps in a recent report published in collaboration with Morgan Stanley, which addresses why, when, and how high-growth companies can develop ESG strategies that support value generation and meet growing stakeholder (i.e. investor) expectations. 

So, you’ve taken the initial recommended steps. What do you need to consider first among the ESG dynamics at play?

Environmental Issues

Acting on the climate crisis is more urgent than ever, no matter where a high-growth company is in their sustainability journey. While younger companies may have a smaller environmental impact than more established ones, they must not ignore issues such as climate change and energy use because extreme, systemic climate risks can be disruptive to the global economy and all businesses.

To develop a climate strategy that fits a company’s business model, scale, and stakeholder expectations, start by measuring the company’s greenhouse gas emissions footprint, which will provide a baseline to make informed decisions, commitments, investments, and operational changes moving forward. Once the company understands its footprint, it can then create a strategy to meet an ambitious climate action commitment, as exemplified by Atlassian’s Science-Based Target and net-zero goal and Okta's 100-percent renewable energy commitment.

Social Issues

The COVID-19 pandemic, ongoing social justice movements, and recent social media deplatforming events have put a spotlight on how companies need to address the “S” in corporate ESG issues—and younger companies whose workforces are rapidly growing cannot wait to act.

While studies continue to show that diverse and inclusive teams provide many business benefits, companies big and small still struggle with creating a workforce where employees enjoy equitable opportunities in a welcoming environment. BSR recommends that high-growth companies adopt equitable and inclusive practices early on, such as ensuring job descriptions don’t include gender-biased language and working with a third party to conduct an annual study to ensure pay equity. We also encourage companies to promote social justice by leading with equity. 

Additionally, collaborative efforts with partners like the Tech Equity Collaborative, Alliance for Global Inclusion, and Partnership for Global LGBTI Equality are great ways for younger companies with smaller teams to work with others to help improve DEI practices and realize benefits at the company and industry-wide level.

Governance Issues

High-growth companies develop with such speed and scale that they often lack strategic approaches and governance structures for managing various ESG issues and are often not resourced with dedicated ESG staff. In turn, the management and communication of ESG efforts can be often an overwhelming task, leaving employees looking around and asking, “who’s responsible for what, and how does any of this get done?”

In establishing an ESG governance structure, first look at team members. Senior leadership support for and awareness of the business case for addressing material ESG issues is critical to gaining resources and realizing the benefits of action over time. Regardless of whether a dedicated Head of ESG position is an option or not, a cross-functional approach—in which senior leadership engages with various business units, be it human resources, investor relations, legal, sales, or product engineering—helps to ensure shared ownership and management of ESG issues that are often interconnected.  

When it comes to communications, start with a featured section of the company website that transparently shares where the company is in its ESG journey. Then consider more robust reporting frameworks, such as the Global Reporting Initiative and the Value Reporting Foundation, to identify indicators to use when reporting annual progress on the company’s material ESG issues.

It is never too early (or too late) to embed ESG into a high-growth business model. Embracing ESG practices early has shown to improve valuation and ultimately long-term success. BSR continues to run our high growth webinar series both in the US and EMEA—if you want to participate, don’t hesitate to reach out.

Blog | Wednesday May 12, 2021

Beyond #StopAsianHate: Building an AAPI-Inclusive Workplace Culture

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“Our community is being attacked. We are dying to be heard.”

In February 2021, civil rights activist Amanda Nguyen went viral. In a social media video—which has received more than 52,000 likes—she called on mainstream media networks to cover violent attacks on elderly Asian Americans.

It worked.

Major news outlets drove attention to the spike in hate crimes against Asian Americans over the past year, noting that advocacy group Stop AAPI Hate received reports of more than 3,800 hate incidents since the start of the COVID-19 pandemic.

Yet as the #StopAsianHate movement garnered support from business, policymakers, celebrities, and the wider public, the violence continued. In March, a shooting rampage in Atlanta targeted Asian-owned businesses and killed eight people, six of them women of Asian descent.

Groups have attributed the sharp increase in hate crimes against the Asian American Pacific Islander (AAPI) community in part to the xenophobic rhetoric of former U.S. President Trump. However, AAPI racism is not new.

As the U.S. celebrates AAPI Heritage Month this May, there is an opportunity for business leaders to learn more about the AAPI experience and help to build a more just, sustainable, and inclusive world—beginning in the workplace.

Understanding the Diversity within the AAPI Community

Employees are one of the most important stakeholder groups to any business. While you may list AAPI staff in just one or two boxes in the EEO-1 documents, it’s important to remember how broad and far-reaching the term AAPI is.

The term AAPI accounts for more than 24 million people in the U.S., whose origins span East Asia, Southeast Asia, the South Asian subcontinent, Polynesia, Micronesia, and Melanesia. AAPIs can include first generation immigrants or those whose families have been in the U.S. for generations, and come from varied income levels and education backgrounds. It’s also important to remember that AAPI experience in the U.S. will be different than those of Asian or Pacific Islander colleagues based in other countries.

Recognizing this diversity of cultures and experiences is necessary to connect and engage with colleagues, clients, and community members of AAPI descent. When crafting diversity, equity, and inclusion (DEI) strategies, there is no one-size-fits-all approach to working with AAPIs.

Confront Existing Biases about Asian Americans and Pacific Islanders

As the past year has brought to light, there is a long way to go to achieving racial justice in the U.S. And as the recent hate crimes have demonstrated, many communities suffer from racist violence.

Most companies have systems in place to deal with overt discrimination and racist acts. Creating truly inclusive workplaces, however, involves confronting individual bias—even those that could be perceived as ‘positive.’ The model minority myth—the belief that Asian Americans have overcome discrimination and are more successful than other ethnic minorities—is problematic for multiple reasons.

Primarily, it perpetuates many of the stereotypes that lead to microaggressions in the workplace: they excel at science and math, they are good workers but not leadership material, and there are expectations around being quiet and docile. Other common workplace microaggressions include the constant questioning over “Where are you really from?” and “How do you speak English so well?” or confusing Asian employees for one another.

Learning about these biases is important not just for leadership and managers, but for all colleagues to understand any stereotypes or prejudices they may have about AAPIs. Without this shared understanding about implicit biases, it is impossible to make meaningful progress on social and racial justice.

Apply a Lens of Equity and Inclusivity across Sustainable Business Practices

A company’s commitment to racial justice does not exist in a vacuum, separate from business strategy or sustainability practices. In fact, a business can only fulfil its commitment to racial justice if it takes diversity, equity, and inclusion (DEI) action beyond its human resources practices.

As BSR’s Diversity, Equity, and Inclusion Director L. Simone Washington has written, DEI is “a philosophy that permeates throughout a company’s business operations,” and business should apply “a critical lens to its policies, practices, and programs and to identify how it can be more inclusive and create opportunities for those who are systematically marginalized.”

This can include ensuring that business climate plans advance climate justice solutions, assessing how products and operations may disproportionately impact a group of people, applying intersectional approaches to gender equality programs, and more.

What’s Next

Over the past year, we have seen companies across all industries make statements in support of racial justice—from #BlackLivesMatter in June 2020 to #StopAsianHate in March 2021. Some have even put forth commitments related to hiring, promotion, investment, and sourcing to advance diversity and equity goals. Still, there is more work to be done—to address systemic racism, to build Black wealth, to destroy the model minority myth.

One immediate action business can take to support the Asian-American community is to support federal legislation to address anti-Asian American hate crimes. The bill passed in the U.S. Senate in April and is expected to face a House vote this month.

As BSR continues to work with member companies, the business community, and partners to build a more just, sustainable world, we seek to actualize a vision for equity and inclusion. We hope you will join us.

Blog | Thursday September 28, 2023

BSR’s Climate Journey Toward Net Zero

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With 2030 quickly approaching, global climate commitments must move toward swift action to halve emissions and reach global 2050 net-zero goals. At BSR, we work with our membership network to deliver credible action to keep 1.5°C within reach, while also maximizing synergies with nature; human rights; and equity, inclusion, and justice.

While we focus on sustainability impact in all the work we do with our members, like all organizations, our day-to-day operations have an environmental impact. It is important we hold ourselves to the same standard we expect from members, and recognize this opportunity to share openly about our climate journey. We have therefore set a climate target for our organization and embarked on a journey to deliver on it. 

Our Climate Target

Using BSR’s 2021 GHG footprint as the baseline, BSR commits to: 

• A near-term (2030) target, to reduce total Scope 1 (own operations) Scope 2 (energy source) emissions by 50%, and our top emitting total Scope 3 (value chain) emissions by 42%. 

• A long-term (2040) target, to reduce total Scope 1&2 emissions by 90%, our total Scope 3 emissions by 90%, and to reach net-zero by neutralizing residual emissions with permanent removals. 

Starting in 2023, we are applying a carbon price to our Scope 1, 2, and 3 emissions, and using the funds to invest in climate solutions that contribute to global net zero beyond our value chain. In 2023, we have decided to use the US Government Social Cost of Carbon as a reference. 

For more information on BSR’s GHG emissions data and climate targets, please visit Sustainability at BSR. 

Climate Goal Development Process 

We believe impactful work and a credible climate target and implementation plan go together. The SBTi Net Zero Standard is the most robust standard currently available, and although as a non-profit we cannot officially commit to the SBTi, we are committing to a target that follows SBTi’s guidance.

BSR’s climate goal and implementation plan are grounded in four key principles: 

1. A clear vision on transformative climate leadership. 

2. Learning from peers’ climate ambitions to ensure alignment with best practices. 

3. Aligning with the recommendations provided to BSR members and demonstrating a commitment to “walking the talk”. 

4. Leveraging the transformative power of BSR’s unique membership network model as a catalyst for broader change. 

BSR’s climate goal development process began with a comprehensive greenhouse gas footprint from an external expert. We then participated in one-to-one discussions on the learnings and challenges of developing a climate strategy with non-profit peers, and benchmarked industry counterparts and partners before forming and testing the feasibility of multiple climate goal options in alignment with the SBTi Net Zero Standard. The creation of the implementation plan included a review of our emissions data to understand BSR’s leverage to influence and reduce Scope 3 emissions, our largest source of emissions—largely due to our contractors and professional services use.

The whole process was validated by BSR’s internal experts, leadership team, and the CEO to ensure 1) internal operational and financial support and 2) alignment with business needs to continue our mission. 

Implementation and Beyond 

Climate commitments have true value when accompanied by a robust implementation plan with specific milestones. The delivery of our climate targets starts in 2023 and is supported by three timebound task forces: 

• Renewable energy, heating, and green offices: Propose strategies to reduce offices’ GHG footprint and engage staff in sustainable practices at the office—including green IT and waste reduction—both with considerations for the impact of home working. 

• Policy development: Include climate considerations in travel and contractor engagement policies to reduce emissions from two of our largest sources of Scope 3 emissions—business travel and purchased services. 

• Beyond value chain mitigation strategy: Develop and deliver BSR’s strategy to invest in climate solutions from now and define parameters for our long-term strategy to invest in carbon removals. 

A key aspect of our implementation plan is the use of the social cost of carbon to fund our investments in climate solutions that contribute to global net zero beyond our value chain. We hope that this unique approach can inspire others to ground climate investment estimations in amounts that reflect the real-world damage to people and the environment.

Although BSR is a small organization with a small GHG footprint on a global scale, we believe that our current climate goal will bring positive impact and help us take responsibility for our impact. In parallel, we are working on ways to activate the great potential for GHG emissions reduction with our members. 

BSR’s implementation plan consists of collaboration across departments, engagement with partners and BSR members, and continuous iteration. We have climate goal implementation taskforces involving different functional teams on climate action and will work with partners and BSR members to reduce GHG emissions together. While we are still figuring out how to address our main Scope 3 hotspots, such as our contracted services and partners and business travel, we are not waiting until we have a perfectly developed strategy to act. 

Leading by Example 

BSR acknowledges the ambitious nature of our net zero target. As a small organization, we have limited leverage on our Scope 3, and do not have all the solutions now nor the resources of the large companies with which we work. However, we remain steadfast in our commitment to playing our part in achieving global net-zero and being an example of how SMEs can prioritize sustainability.

This pledge reflects BSR's core identity as a sustainability organization, the urgency of the climate crisis, and our attitude to “walking the talk” with transparency, humbleness, ambition, and a commitment to sustainable business practices.

Achieving climate goals is a journey, and BSR remains dedicated to regularly reviewing our climate strategy, open communication on our progress, and continuous improvement, including expanding our sustainability efforts to address other important issues in the future. 

Audio | Thursday August 1, 2024

Navigating U.S. Election Uncertainty: A Call to Action for Sustainable Business

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In the United States, electoral uncertainty, threats to democracy, and the potential for instability and chaos are notably apparent as the country faces an enormously consequential election this fall. What are the risks for sustainable business, and what proactive steps can business leaders take to mitigate them? BSR President and CEO Aron Cramer chats with David Stearns about five topics central to the just and sustainable business agenda that will be affected by the outcomes of the election, followed by strategies for advancing sustainability objectives using BSR’s Act, Enable, Influence approach.

Blog | Tuesday May 2, 2023

Climate Transition Plans That Enable Business Transformation

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Investor groups and key climate organizations are expecting clarity on how companies are moving from target-setting to taking action with a climate transition plan. The Glasgow Financial Alliance for Net Zero (GFANZ), the Task Force for Climate-Related Financial Disclosures (TCFD), and the CDP, among others, have released climate transition plan disclosure frameworks and guidance recently. In March 2022, the UN Secretary General’s High Level Expert Group on the Net-Zero Emissions Commitments of Non-State Entities published its final report with ten recommendations for non-state entities, which include creating a transition plan.

Calls for these disclosures are a response to gaps between companies’ targets and progress, as well as meaningful emissions reductions. In its latest progress report, the Science Based Targets Initiative (SBTi) highlights this gap—of 692 companies analyzed in the report, only 46 percent reported progress against all their science based targets.

Climate transition plans are a set of actions and accountability mechanisms that ensure business strategies and operations deliver GHG emissions reductions and a net-zero transition. While definitions and frameworks are evolving, climate transition plans should state the company’s climate objectives and goals and how they will be achieved via a net-zero aligned resilient business strategy, governance and accountability, business and financial planning, implementation, organizational culture alignment, and engagement with value chains, industry, and policy. In addition, climate transition plans should ensure a just and equitable transition, as well as the protection and restoration of nature and biodiversity.

To ensure that companies make meaningful progress toward their climate commitment, climate transition plans must enable net zero-aligned business transformation. Effective climate transition plans:

1.     Are integral to a resilient business strategy.

Integrating climate actions into business strategy will not be sufficient to deliver meaningful progress—it will require a paradigm shift. Resilient businesses anticipate material changes to the operating environment, systemically develop and test strategic plans in the context of such changes, and allocate resources that enable success in multiple potential futures. By focusing on building resilience, companies will develop and implement transformative climate transition plans that drive meaningful progress toward climate targets and deliver long-term business value. Building a resilient business may require a rethinking of business models, long-term value, and growth.

2.     Are overseen by the board and executive leadership.

Board and executive-level oversight enables alignment of governance, strategy, and internal processes with climate targets and resilience building. Executive decision-making that is consistent with purpose and long-term value generation avoids short-term thinking that sets failure on targets. Governance, accountability, and the integration of stakeholder feedback are vital for companies to remain on track to deliver emissions reductions and be equipped to respond to a changing regulatory environment.

3.     Allocate resources toward decarbonization programs.

A transition toward net zero will require most companies to radically transform their operations and product and service portfolios and address high-carbon assets. Such interventions will require companies to rethink how they allocate resources and deploy human and financial capital. Prioritizing the allocation of financial resources toward these actions will require upfront investment but can build resilience to changing market conditions and bring long-term returns. Financial metrics must be adapted accordingly.

4.     Integrate climate into skill development and corporate culture.

As business models evolve, climate and sustainability-related responsibilities will be embedded across corporate roles that will involve cross-functional collaboration. To facilitate this integration, companies need to invest in skill development, such as reskilling employees from high-emitting business units to transition programs or providing company-wide training on climate change basics.

In addition, companies will need to create enabling cultures, by openly communicating climate-related plans, policies, and procedures to employees and engaging them in decision-making processes. Leadership will have a role in framing climate change as a priority issue for the company.

5.     Lead to closer engagement with value chains.

According to the CDP, upstream scope 3 emissions of the average global company are 11.4 times greater than its direct operations emissions. To meet Scope 3 targets, companies will need to drastically invest in responsible sourcing strategies. By working with upstream and downstream business partners that have aligned priorities, companies will be able to advance collaborative solutions. Facilitating supplier access to sources of finance, technology, and training will ensure value chains have the critical support needed to advance their own climate transitions.

The disclosure of climate transition plan and other sustainability-related information is key to generating decision-useful information for stakeholders. While it is important that companies disclose high-quality information, they must ensure that climate transition plans are integrated into business strategy, lead to short-term action and emissions reductions, and generate a net zero-aligned business transformation. This approach will ensure that companies will be equipped to manage climate-related risks, generate long-term value, and remain competitive in a net-zero global economy.

Beyond business transformation, climate transition plans should lead to system-wide interventions that facilitate a net-zero transition. This requires engagement with public policy, industry, and communities affected by climate and transition policies. BSR will cover these topics in upcoming blogs.

Blog | Wednesday October 27, 2021

Transform to Net Zero: Five Key Steps to Setting Net Zero Goals

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While more than 3,000 businesses have joined the UNFCCC Race to Zero campaign and pledged to reach net-zero greenhouse gas (GHG) emissions by 2050, many companies face challenges in putting this guidance into practice. 

Wipro is a founding member of Transform to Net Zero, a cross-sector industry initiative to accelerate the transition to an inclusive net-zero global economy. Our 2025 goal is for 1,000 Fortune Global companies to adopt targets backed up by transformation plans to achieve net-zero emissions no later than 2050.

To advance robust net-zero goal setting, Transform to Net Zero’s new Transformation Guide will share how three Transform to Net Zero members—Danone, Wipro, and Environmental Defense Fund (EDF)—approached a net-zero goal-setting process that translates into meaningful business transformation.

Below are five steps of how your organization can navigate the net-zero goal-setting process and commit to meaningful emission reduction targets.  

Step 1: Understand Your Emissions

Every company’s decarbonization journey begins with a comprehensive value chain GHG baseline and footprint assessment. Knowing your footprint allows you to set net-zero targets, but it is often easier said than done, especially with regards to Scope 3 emissions, which are often the lion’s share of a company’s emissions. 

Scope 1 and 2 emissions are relatively straightforward to account for because they are derived directly from company operations and therefore within the direct control of a company to remediate. Scope 3 requires accounting for your entire value chain, much of which is outside your control either upstream or downstream, which make Scope 3 emissions a tough nut to crack.  

Measuring Scope 1, 2 and 3 emissions are nevertheless a crucial first step in developing an accurate net-zero roadmap that demonstrates credibility to investors, customers, civil society, and other stakeholders. Amidst increased scrutiny of corporate net-zero targets, it is imperative that this accounting of your carbon footprint is reliable and transparent. 

Step 2: Set an Ambitious Net-Zero Goal with Clear Interim Milestones

Every company needs a north star commitment when it comes to emissions. For instance, Wipro has committed to net-zero GHG emissions by 2040, with a 55 percent reduction in GHG emissions by 2030. But making a commitment is not enough. Publishing a detailed plan explaining how you will get there is a major component as well. In an era where credibility is paramount, you must show your work. That means sharing key details regarding each phase of your GHG mitigations, including direct emissions (company facilities and vehicles), indirect emissions (purchased electricity, good and services), and yes, your value chain too (waste, transportation, business travel, employee commuting, and all downstream lifecycle activities related to your products and services). Creating and publishing a detailed roadmap accounting for every facet of your emissions with interim milestones will enable you to track and share your progress toward net zero with key internal and external stakeholders.  

Step 3: Engage with Leaders to Create and Sustain Organizational Buy-In 

Decarbonization doesn’t happen instantaneously. It’s a long process that requires the buy-in and support of many people over a period of many years. In the beginning, your leadership must be onboard because decarbonization requires major operational changes through your organization. Wipro has been working on decarbonizing its value chain for more than 15 years. Initially, the focus was on socializing with leadership the idea of developing a strong climate change program and obtaining consensus on commitments to the necessary investments and resources.  Over time, this process matured into a common shared understanding throughout the company of the need to constantly improve our net-zero and sustainability work. 

Step 4: Collaborate with Suppliers and Employees on Meeting the Scope 3 Challenge

Achieving net zero is not possible without tackling Scope 3 emissions, which by definition are not under the company’s direct operational control. For many companies, measuring and ultimately eliminating Scope 3 emissions offer the greatest potential GHG reductions, so it’s an incredibly worthwhile, albeit difficult, task. For example, 75 percent of Wipro’s emissions in FY21 are from Scope 3 sources, with business travel, employee commute, and purchased goods/services comprising a significant proportion. 

To help reduce your Scope 3 emissions, consider adopting some of the following strategies:  

• Work with local transport authorities to improve access to public transport for employees 
• Increase carpooling by employees 
• Develop robust processes to promote remote working and collaboration
• Reduce business travel, in particular air travel
• Increase the lifecycles of your products and their end-of-life treatments
• Reduce the waste generated by your organization as much as possible 

In addition, work with suppliers directly through industry associations to decarbonize purchased goods, such as IT hardware, telecom, and other business services. Your suppliers must be a key part of your reduction strategy because they most likely contribute most of your value chain’s emissions. 

Step 5:  Partner with Customers

The GHG emissions of the IT services sector tend to be relatively lower than more carbon-intensive industry sectors. For B2B businesses, while reducing your own value chain emissions to net zero is a significant contribution, you can also play an equally important role in helping customers reduce their own GHG footprint with the help of the right technology solutions and expertise. Organizations around the world are all facing the net-zero imperative, and your organization’s experience planning and executing a net-zero commitment is valuable and important. Share it with your customers. While many of the world’s largest companies have net-zero commitments, even more do not. It is essential that more and more organizations join the drive to net zero, and by sharing your story with your customers, you make their own journey that much more palatable. 

We will be sharing more in Transform to Net Zero’s Transformation Guide on Net Zero Goal Setting being published on November 8, 2021. 

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Blog | Tuesday June 14, 2016

Sustainability and CSR: A Word about Terms

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If you came to BSR’s website looking for information on corporate social responsibility or to ask, “What is CSR?”, only to find a lot of talk about sustainability, you may be wondering why this is so and whether you’ve come to the right place (you have!).

So why does BSR focus on sustainability vs. CSR? And what’s the difference, anyway?

First, a quick qualifier: As a global nonprofit business network and consultancy, we take a flexible approach to the use of terms in our project work, reflecting the diverse needs and understanding of our members and partners in different parts of the world. In our experience, CSR, sustainability, sustainable business, corporate citizenship, and the like are all generally used to describe the same thing, and so we are happy to use whatever terms resonate most in a given place and context.

For purposes of our own branding and thought leadership, however, we see value in consistency and have made some clear choices based on what we are trying to achieve—and we recommend that our members do the same. In our case, the language of sustainability wins out over CSR for a number of reasons.

Sustainability conveys greater ambition because it focuses on what we need to achieve, rather than where we are today. The original definition of sustainable development, from the first Rio Earth Summit in 1992, focused on “meeting the needs of the present without compromising the ability of future generations to meet their own needs."

The language and tools of CSR, at least in its early forms, tended to focus on meeting—or balancing—the needs of stakeholders today. Additionally, the term is often confused with philanthropy. As BSR and the broader field have come to focus more on long-term systemic issues, such as climate change and the inclusive economy, we felt that the ambition conveyed by sustainability better captures the objectives of our work.

Sustainability emphasizes a common agenda for all sectors of society, while the “C” in CSR calls out corporate practices more exclusively. BSR’s above-mentioned focus on critical systemic issues has come with a greater commitment to multistakeholder collaborative initiatives, in which business, government, and civil society all have critical roles to play.

Sustainability is a holistic concept that encompasses the full range of environmental, social, and economic issues addressed by our work. While the same is true of a good CSR strategy or program, the “S” in CSR is too-often construed to mean a narrower focus on social issues. That is also why we now go by “BSR” instead of our original moniker, “Business for Social Responsibility.”

Sustainability represents a concept that, in our experience, is more easily integrated into the core purpose of business than “responsibility,” which is often perceived as a check or counter-balance to business-as-usual activity. As the field has evolved from an exclusive focus on risk management and avoidance of harm to also encompass innovation and value creation, sustainability provides a more attractive and inspiring framing.

In short, “sustainability” reflects the ambition, reach, and inspiration required to achieve BSR’s mission of working with business to create a just and sustainable world. And although some may argue it’s just semantics, to us, sustainability—and what comes with it—is core to everything we do. 

Blog | Wednesday February 1, 2023

Healthcare Working Group: Driving Change for over Two Decades

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In December 2022, we sunsetted (with pride!) the Healthcare Working Group (HCWG). As BSR’s longest-running collaborative initiative, over 23 years HCWG aimed to improve global health by creating a more sustainable healthcare industry and by empowering companies to maximize the scalability and impact of their response to societal issues.

We have helped an entire sector mature through knowledge sharing between members, identifying opportunities for collective action, and providing leading research on timely subjects from access to healthcare (since 2009), to pandemic preparedness (2017), antimicrobial resistance, the nexus of climate and health (2018), AI (2019), and bioethics (2022).

As we end this collaborative initiative, we reflect on lessons learned, how the healthcare industry is pursuing its sustainability journey, and how we contributed to systemic change for a more just and sustainable world.

"The Healthcare Working Group provided a practical way for companies, like Johnson & Johnson, to collaborate across sectors on impactful projects, while also allowing members to openly discuss concerns, identify opportunities, and share best practices. In addition to the expertise brought by BSR, the Working Group also hosted numerous external experts who provided updates on ESG and sustainability trends and insights, which we brought back and incorporated into our organization.”

- Kyle Peoples, Director, Enterprise ESG Program Office, Johnson & Johnson

Improving Global Health through a Sustainable and Resilient Sector

HCWG’s mission was to empower member companies to be more sustainable, and strive to achieve a more resilient industry.

We worked collectively to build our understanding of emerging ESG issues with an industry lens, from access to healthcare to climate change resilience and bioethics. Companies could openly share best practices and challenges. We engaged external stakeholders on a regular basis, either collectively during our meetings or via one-to-one interviews, and built on our work with other industries that were more advanced on certain issues, e.g., the tech industry and the use of AI.

In 2013, we took a collective public positioning with the Guiding Principles on Access to Healthcare (GPAH), an industry-led call for cross-sector collaboration to expand access to quality healthcare signed by the CEOs of 13 major pharmaceutical companies, including GSK, Johnson & Johnson, Novartis, Sanofi, Takeda.

Empowering Leaders to Build a More Resilient Industry

Over two decades, we empowered industry leaders, helping them understand ESG issues and stakeholders' perspectives and integrate these into business operations.

We developed guidance and tools on emerging industry issues. Here are a few examples of our contributions to advancing the sector:

• Our 2016 Advancing Access to Healthcare Metrics report paved the way to improving the quality and comparability of metrics by increasing the focus on outcomes and by providing related guidance on monitoring and evaluation methodology.
• In 2017, the Innovative Finance to Expand Access to Healthcare paper aimed to catalyze innovative finance partnerships that would unlock more financial resources.
• The 2018 nexus between Climate and Health is still being referenced as helping companies understand their impact and building climate resilience.
• More recently, the Access to Healthcare Leadership Ladder was developed to provide a maturity diagnostic and ambition-setting tool aimed at driving progress on access to healthcare.

“LEO Pharma piloted BSR´s Access to Leadership Ladder with the aim to measure and set targets for our maturity in providing access to health. This tool has provided valuable processes that highlight gaps, and has kickstarted organizational discussion of roles and responsibilities with a standard framework developed within the healthcare industry.”

- Klaus Legau, Executive Advisor, Global Stakeholder Engagements, LEO Pharma

Improved Maturity on ESG Issues

Over the years, we have seen increased maturity on several ESG issues. Access to healthcare is now embedded into operations, with dedicated access teams, programs and even business units. We also see appetite for deeper engagement on other issues, including sustainability reporting, human rights management, diversity and inclusion, and sustainable supply chains.

We are also observing how different segments of the industry are advancing their sustainability journey. While big pharma companies embraced sustainability years ago and dedicated important resources to this, medical devices companies have now built strong strategies and programs to address their priority issues. Contract manufacturing organizations and other healthcare service providers are also integrating sustainability in their operations to answer requests from customers, investors, and regulators. Investors’ scrutiny is also driving life science companies to identify their ESG priorities through materiality assessment, even at the pre-revenue stage.

Anticipating the Future of Healthcare and Upcoming ESG Priorities

Pandemics, climate change, conflicts, and antimicrobial resistance call for collaboration between public and private sectors as never before. Health equity is now a top priority across many segments of the industry, as COVID-19 increased the focus on equitable access to healthcare in both developed and developing countries.

We are also supporting our members to navigate emerging ethical issues and human rights management across the value chain. Finally, we see companies and stakeholders building closer connections between environmental and social topics—which can be illustrated by the recent landmark resolution that recognizes a clean, healthy environment as a universal human right.

We thank the Healthcare Working Group members, both companies and individuals, for their drive, insight, and dedication over the past two decades—we are proud of what we achieved together.

We look forward to exploring new emerging issues with our healthcare members through other avenues: our membership engagement, events, and other collaborative initiatives.

Blog | Thursday October 31, 2024

Racing Past the Crossroads: How Sustainability Leaders Can Reassert Ambition

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BSR’s recent report, The CSO at a Crossroads: Three Paths Forward for Sustainability Leaders, drew on interviews with more than 30 chief sustainability officers (CSOs) to argue that we are at a crucial moment to reassert an ambitious vision for the CSO role.

After a period where CSOs focused (understandably) on reactivity and regulation, it is time to recognize the urgency and scale of global challenges and their implications for business. We emphasized the unique capabilities of the CSO in helping the company navigate external global developments and stakeholder interests with an eye on strategy, risks, and opportunities.

So how can CSOs steer down the more ambitious paths for sustainability leadership? 

Here are seven ways sustainability leaders can reassert ambition in transforming companies, economies, and societies: 

1. Use futures, foresight, and scenarios to reframe the time horizon for ambition. Corporate approaches that emphasize reactivity and compliance are doomed to deliver incremental improvements and miss the long-term changes that affect business and society. Companies can recognize the benefits of more resilient and ambitious strategies by weighing, “What developments might shape our business and operating environment over the next 10 years, and what actions should we take to prepare for them?” BSR’s 2018 report, Doing Business in 2030, encouraged leaders to contemplate scenarios based on the hyper-politicization of business and sustainability, dramatic geopolitical fragmentation, breakthroughs in AI, and a global public health crisis. The 2024 report, Between Two Worlds: Sustainable Business in the Turbulent Transition, updates futures thinking to enable Boards and senior executives to focus on longer-term considerations. 
2. Focus on the top few areas with the most strategic importance and impact. To date, sustainability strategy has too often been an exercise in breadth and bundling—covering a range of topics and aggregating them into themes. This may have made sense in an era when companies were in the early stages of understanding their impacts. With foundational double materiality assessments in place, CSOs can pursue more ambitious impact agendas by identifying and investing in a select few strategic priorities. These priorities will need to be tailored for each company and may be linked to the specific business model (US private sector on EU regulations). As Robert G. Eccles and BSR alumna Alison Taylor noted, “The CSO role is finally becoming strategic, if you define strategy as the art of choosing what not to do. Today, CSOs help identify and direct attention to the ESG issues that have a substantial impact on an organization’s financial performance and risk profile. This approach aligns with broader corporate strategy-making, as it helps organizations focus on what matters most to long-term value creation.” 
3. Shift from disclosure to strategy; from assessment to action. Recent regulations have launched a scramble to strengthen corporate governance, risk assessments, and disclosures on sustainability. Those are worthwhile developments, but ultimately meaningless unless they serve as the basis for strategy, action, and impact. Companies that are investing so much now in due diligence and compliance should begin to focus more on the resulting actions that will yield meaningful improvements in real world risk, opportunities, and impacts. You can’t simply “CSRD away” your climate risk. A focus on collective action and collaboration within and across sectors can also avoid duplication and better align efforts towards more efficient and impactful change. 
4. Rethink business models to address the fundamental tensions among corporate interests, society, and the environment. Business and economic models based on indefinite growth and unmanaged externalities are already running up against environmental, social, and political limits. Those limits will threaten many companies, such as those that depend on cheap natural resources, endless disposable plastics, unfettered trade, fragile logistics networks, low wage labor, and use of personal data. These limitations may manifest in response to commitments and regulations. For example, incremental action against a context of ongoing growth will not suffice to help most companies achieve their public, investor-facing commitments to Net Zero and Science-Based Targets. Additionally, the European Sustainability Reporting Standards specifically call for disclosures to account for the impacts of a company’s business model. Moreover, companies have an opportunity to build more ambitious, resilient strategies by examining and innovating in how they create, deliver, and capture value amid changing environmental and social dynamics. Areas for exploration might include designing products/services for sustainability and human rights, development of circular or service-based business models, expanded employee ownership, and more inclusive governance models. Focusing on business models puts sustainability at the center of major business decisions—where to build a factory, which technologies to adopt, mergers and acquisitions. Boards and executives will have to make such business decisions within the wider societal context. 
5. Activate boards and executives. Corporate leaders have moved rapidly up the maturity curve on sustainability, particularly in their oversight of disclosures and compliance. It will be vital to shift boards and executives to more active roles in grappling with the strategic impacts, risks, and opportunities of sustainability.
6. Elevate expertise and stakeholder voices. Senior executives and board directors rarely bring specific expertise in areas of vital sustainability importance such as climate change, human rights, and responsible AI. They also rarely come from vulnerable stakeholder groups. Important efforts are underway to upskill and diversify corporate leaders, though we can’t expect solutions to be quick or comprehensive. To access expertise, navigate complexity, and incorporate more diverse stakeholder viewpoints, boards and executives will benefit from ongoing platforms to tap external views. That might come through building partnerships, establishing external advisory councils, or leveraging industry wide stakeholder engagement. It might also include more significant governance changes such as mechanisms for employees to serve on boards, or granting a board seat to nature.
7. Engage in public policy; strengthen geopolitical capabilities. The call for companies to engage more thoughtfully in public policy is not new, but it is more important than ever given political backlash and reluctance to take on the major challenges that social and environmental risks pose to economic and societal well-being, and the fracturing of global cooperation on issues like climate change, trade, and peace. Companies will benefit from aligning sustainability and public affairs to promote shared priorities and boost credibility. More importantly, they can enhance sustainable business leadership by using that base of credibility to encourage rational policies that manage systemic risks and promote positive, sustainable transformation in the business operating environment. While business associations have often focused on preventing regulation and tax policy, those associations could be valuable forums to amplify the collective voice of specific industries to advocate for a strengthened enabling environment for sustainable business.

BSR plans to use these preliminary ideas as a starting point to engage members in the coming months, and we welcome your solutions, critiques, and quandaries.

It is especially crucial that these conversations reflect the challenging context of the present and the global imperatives of the future. If CSOs are indeed at a crossroads, it is time to race along a path of integration, ambition, and transformation. We look forward to bringing together CSOs, CEOs, and Board Directors to further discuss the evolving role of sustainability leadership.