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Blog | Wednesday November 1, 2017

Introducing the We Mean Business Climate Policy Tracker

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The Paris Agreement on climate change was a historic turning point. It gave businesses much-needed clarity on global policy direction and provided a valuable roadmap for creating the low-carbon economy.  

Today, we are excited to introduce the Climate Policy Tracker, an online tool led by BSR, which is intended to help businesses realize the immense benefits of embracing a low-carbon future by providing the up-to-date landscape of climate regulation.

Nationally Determined Contributions—the climate action plans individual countries have articulated to realize the Paris vision—are currently being implemented at scale, transforming the regulatory landscape that businesses operate in, sector by sector. According to a recent study from the London School of Economics, up to 47 new laws have been ratified around the globe since the Paris Agreement was adopted.    

Now is a defining moment for companies to embrace the transition to the low-carbon economy. Businesses that effectively prepare for these new policies and sustainable investment opportunities will be in a better position to seize the benefits of the transition. These include innovation, risk management, competitiveness, and growth—opportunities that, as Morgan Stanley noted in a recent blog post, could amount to US$10 trillion annually by 2050.

Not only are policymakers actively working to address the threat of climate change through new laws, for example, that would phase out fossil-fuel-powered vehicles, but we are also seeing companies respond to this clear policy direction. For example, just last month, GM announced plans to launch 20 new electric vehicles by 2023—plans that are aligned with new regulations to promote a shift to electric vehicles in countries like India and the U.K.

Guide to Action

Accurate and up-to-date information on climate policy can help inform corporate strategy and investment decisions. Moreover, this information can help to demonstrate the need for corporate climate action to key stakeholders, including investors, board members, and employees.

The tool can also simplify a potentially complex process. Businesses can quickly identify regulations relevant to their operations and supply chains and recognize critical differences between geographies and sectors that are vital to factor into low-carbon strategies.

The tracker currently includes 120 policies from nine geographies—China, the United States, the EU, India, Japan, South Korea, Brazil, South Africa, and the U.K. Moving forward, more countries will be added to the tool, as will information on policies in cities, states, and regions.  

By highlighting relevant climate regulation, the tracker points businesses to how they can practically respond through commitments from the We Mean Business coalition’s Take Action campaign.  

Business Is Leading

Forward-looking companies are responding to the challenges that climate change presents with ever-more-ambitious plans to reduce their greenhouse gas emissions across their value chains. To date, more than 620 companies have committed to climate action via the Take Action campaign, including some 130 industrial companies, more than 40 utilities, and three of the world’s largest consumer goods companies: Nestlé, Procter & Gamble, and Unilever.

Together, these companies have committed to cut some 2.31 gigatons of Scope 1 and 2 greenhouse gas emissions—a reduction that would be equivalent to the total annual emissions of Russia.

The growing action from companies to combat climate change is giving governments increased confidence to ratchet up their own commitments, supporting their efforts to fully implement the Paris Agreement with targeted policy interventions.

As the scale and ambition of climate policies increase, forward-looking companies can utilize the Climate Policy Tracker to stay ahead of the curve. By embracing and acting on climate policy in this way, businesses are demonstrating their abilities to future-proof their operations and their active support for the Paris vision.

Learn more about the Climate Policy Tracker for business.

Blog | Tuesday October 31, 2017

Planned Parenthood’s Cecile Richards Urges Business to Support Women’s Healthcare at BSR17

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In a keynote address at the BSR Conference 2017, Planned Parenthood Federation of America and Planned Parenthood Action Fund President Cecile Richards highlighted the role of business in advancing women's empowerment and access to women's healthcare.

"The good news is that business and business leaders are best positioned to lead us out of the patriarchy and into the light," Richards said.

Following her address, which received a standing ovation, Richards joined a conversation with BSR Senior Vice President Laura Gitman and answered live questions from BSR Conference participants on Twitter.

Watch the full video below:

The BSR Conference 2017 took place October 24-26 in Huntington Beach, California, and gathered sustainability leaders from business, government, and civil society to explore the theme of “How Business Leads.” Follow the conversation on Twitter at #BSR17. See all video highlights on BSR’s YouTube channel. 

Blog | Thursday October 26, 2017

Embedding Inclusive Growth in Business Decisions: A Framework for Companies and Investors

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Decades of globalization and technological innovation have produced tremendous economic growth, but the distribution of benefits has been skewed toward a few. This inequality has given rise to economic and social instability, which is now further exacerbated by global challenges of rapid urbanization, extreme weather events, and advancing automation.

While governments will play an important role in making progress on these issues, the private sector will be a key player in contributing to the sustainable development agenda and achieving a more inclusive economy. Those companies who understand that growing responsibly does not mean sacrificing efficiency or profits are likely to succeed in this new era: Inclusive growth is good business. 

In fact, broad, inclusive growth creates an external environment more conducive to business growth, namely through an improved operating environment and enhanced consumer purchasing power. It can also provide internal benefits, such as improved retention, productivity, and ethics; a culture that encourages innovation; and enhanced relationships with suppliers.

How do companies help foster this? First, they must understand how the current lack of inclusive growth impacts their businesses. Then, they need to examine how they might impact inclusion via their employees, operations, products and services, and overall management.

In collaboration with BSR, Morgan Stanley has developed a framework to explore the relationship between inclusive growth and business performance. A new paper, “Inclusive Growth Drivers: The Anatomy of a Corporation,” lays out how corporations can positively influence inclusive growth through decisions across all functional areas of their businesses. This work breaks down the “anatomy of a corporation” into four key areas through which company actions can achieve societal and business benefits. Further, investors can use this framework to evaluate risks and opportunities related to inclusive growth.

For each functional area represented in the “anatomy of a corporation,” we focus on the levers that companies can use to integrate inclusive growth into their business decisions.

Human Resources

Choices about diversity, hiring and staffing practices, labor relations, and training and professional development affect employee financial and physical well-being, innovation, and the overall success of businesses. Companies can build inclusive workplaces with job security, good working conditions, and/or profit sharing, either directly in their own operations or through their value chains.

Products and Services    

Decisions here can consider the needs of more and newer consumer segments; products can be marketed and sold in fair ways, and customer needs can be more broadly considered from concept and design through the life of the product. By creating accessible and affordable products that meet critical needs in healthcare, infrastructure, education, and other sectors, companies can contribute to a more inclusive consumer economy.

Operations Management

Operational decisions affect how goods and services reach end customers, and how workers are treated throughout the supply chain. They also give small and diverse suppliers an opportunity to participate in economic growth. By monitoring working conditions and working with suppliers to build capabilities, companies can deepen relationships and create a more reliable supplier base.

Firm Governance and Management    

Sound governance and transparent management practices promote corporate ethics, long-term thinking, and consideration of all stakeholders—including but not limited to shareholders. Companies can also use their political and social capital to influence the policy environment in ways that promote inclusive policies for labor, trade, taxes, and fair market competition.

Inclusive growth can provide a mutually beneficial environment for both companies and society. For businesses and investors, developing an inclusive growth mindset provides direct benefits like greater talent attraction, access to new markets, improved product innovation, and enhanced reputation. By taking a thoughtful look at inclusive growth levers in business decisions, companies can realize business benefits while also contributing to a more prosperous, inclusive, and stable society.

Blog | Wednesday October 25, 2017

How Business Can Act Now for Women’s Health and Empowerment: Q&A with Robyn Russell

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Today sees the release of the new business guide, How Businesses Can Invest in Women and Realize Returns, co-authored by the UN Foundation, the Evidence Project led by the Population Council, and BSR’s HERproject. The guide encourages corporate leadership and showcases how companies can take action in the field of women workers’ health and empowerment. We sat down with Robyn Russell, Deputy Director of the Universal Access Project at the UN Foundation, to discuss private sector action for women’s health and well-being.

Dominic Kotas: What is the link between health and empowerment in developing countries?

Robyn Russell: If you think about your own life, it becomes very clear: if you have access to the health services you need—including family planning, prenatal care, maternity leave, and so on—you’re going to be more empowered and more in control of your life.

Women in developing countries, who might be entering the formal workforce for the first time, need all the same things that we do in order to be healthy and empowered and advance their careers. In particular, they need family planning, because if you can’t choose when you become a parent, you can’t have very much control over your career.

Kotas: What are the biggest challenges around women’s health globally?

Russell: Our guide focuses on women in supply chains, many of whom move from rural areas to urban areas for their first employment. They have often lacked basic healthcare services: everything from menstrual hygiene management, to family planning, to prenatal care, to information about protecting themselves from sexually-transmitted infections. So, this is a real opportunity to meet women where they are and provide them with those services, whether that’s through factory clinics or referrals to local clinics. Of course, the stakes in developing countries are much higher, because we know that lack of access to family planning and good maternal care are leading causes of death and disability for many women and girls in developing countries.

Kotas: How far have we come and how far do we still have to go?

Russell: Historically, these areas have been underfunded and deprioritized. Under the Millennium Development Goals (MDGs), we saw minimal progress on reductions in maternal mortality and access to family planning. Fortunately, the new Sustainable Development Goals (SDGs) have a focus on health (Goal 3) and gender equality (Goal 5), and we’re hopeful we can make progress.

The global health community is working very hard on women’s health through several initiatives, such as Family Planning 2020. However, there is a real role and opportunity for the private sector, especially as women move out of the informal workforce and into the formal workforce. One billion women will enter the global workforce over the next two decades, and 94 percent of them will be in emerging and developing economies. Sectors like textiles, clothing, and footwear employ an estimated 60-75 million people, of which three quarters are women. Action in global supply chains to advance women’s health can have a major impact.

Kotas: We’ve seen more action from business on this issue over the past decade. What has been the driver for this?

Russell: We’re increasingly seeing consumers making purchasing choices based on the social and ethical credentials of brands. Businesses are also realizing that by investing in the health and empowerment of women, particularly in their supply chains, they can see a return on investment—they can reduce turnover, absenteeism, and so on. It’s a win-win for business: you have healthier, happier workers, and you’re reducing costs to production while creating an ethically-made product that’s in greater demand from your customers. Our new business guide highlights current investments from 26 companies working with 11 NGOs in 19 countries, giving readers a number of models for action. From the global public health side, health organizations are realizing they can reach more people by using these networks to make interventions through companies and workplaces.

Kotas: Who and what can help business go further?

Russell: To date, most investments have been as smaller pilots—but we are now seeing companies ready to scale throughout their supply chains and networks. If it’s a matter of support and coordination, we at the UN Foundation are prepared to help companies bridge that gap. NGOs, civil society groups, labor groups, and governments also have a role to play. In the business guide, we outline a list of organizations around the world that are already working with companies and are ready to jump in and do more.

Another avenue is to make sure that women’s health and empowerment are incorporated into standards and certifications, so that these practices are sustainable in the long-term.

We also need buy-in from the folks on the ground: the workers, the local vendors, and the governments in countries where this is happening. We want to listen to workers and understand what they need, so that we can make the most impactful interventions possible.

Kotas: What would be your message to business leaders?

Russell: I would have two. First: If you want to get ahead of the curve on this, now is the time to make these investments. This will be the new norm moving forward. And secondly, we—the global health community, NGOs, and others—stand ready to help you make this transition.

Blog | Tuesday October 24, 2017

New BSR Report: The Future of Sustainable Business

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On the occasion of BSR’s 25th anniversary, we have taken the opportunity to consider our accomplishments. With our member companies and other partners, we are proud to have imagined and worked toward a new vision of business that creates prosperity and fairness for all and preserves the natural environment on which we all depend.

Looking back is important; there is much to learn. But it is even more essential to look ahead: BSR, and the sustainable business movement more broadly, have always been about the future, and we must maintain that focus. This focus on what’s next is even more urgent today, when so many aspects of business, the economy, and culture are changing in profound ways.

And as we look ahead, it is clear that the time is here for a new approach to sustainable business. Many of the conditions that inspired the creation of BSR—a growing sense of resource scarcity and climate change, an increasingly interconnected world, and the rise of the purpose-driven business—have only accelerated over the past 25 years.

The need to reinvent, however, is shaped by three big developments that are creating a new context. First, business is undergoing systematic change—disruption—that is challenging every enterprise to reorient its strategy and approach. Second, we have a clear and universal roadmap for sustainable development, best expressed through the Paris Agreement on climate change and the UN Sustainable Development Goals (SDGs). Third, governance gaps—and failures—create the need for business to lead the way, often in partnership with others, if we are to achieve our shared goals.

Business as usual won’t get the job done—and sustainability as usual won’t suffice. If we are to avoid catastrophic climate change, build truly fair and inclusive economic growth, and navigate a radically reshaped world, it is time for change. Put more positively, we have within our grasp the ability to reorient business and turn the tide on climate change, deliver economic opportunity for all, and build connected societies in which all people can live in dignity and with respect.

For the companies that are addressing these challenges head on, there is the promise of remarkable innovation—not only in technology, but also in business models, partnerships, products and services, and ways of engaging consumers. What’s more, many of the new strategic imperatives for companies have the potential to bring massive improvements in sustainability. The changes that are emerging could deliver great leaps forward—through both direct and indirect means. For example, progress on climate is coming through ambitious targets and through technological innovation that is enabling a clean energy revolution, and digital payment systems have the potential for greater transparency and financial literacy for people in all corners of the world.

With these changes in mind, we believe it is time for a new agenda, new approach, and new advocacy. In other words, it is time for business and other partners to embrace new issues, new ways of pursuing sustainability, and a new—and more assertive—voice. Sustainable business leadership will increasingly be defined by how well companies approach climate resilience; inclusive growth in an era of automation; and technology, human rights, and ethics.

BSR was founded on the belief that a just and sustainable world is within our grasp, and that business is central to realizing that vision. We are as just as motivated today by this belief as BSR’s founders were a quarter-century ago. Never in BSR’s history has there been a time when the opportunity for impact has been so great, and the broad imperative for change so clear. That is a potent combination, and one that we aim to make the most of by working with you.

Today, we are excited to launch a paper that offers our thinking on where to go next. We hope this paper prompts new thinking, identifies new opportunities, and encourages you to join with us in redefining sustainable business.

It serves as an invitation to collaborate with us in the coming year to shape a new agenda, new approach, and a new voice for business that will meet our unique moment. Together, we can set a course for sustainable business, for business more broadly, and for the world.

Blog | Monday October 23, 2017

All the Ways to Follow Us at #BSR17

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Tomorrow, we’re kicking off the BSR Conference 2017 in Huntington Beach, California. Over the next three days, we’ll hear compelling stories from changemakers at companies, foundations, governments, and other organizations who are taking the lead and embracing the need to redefine sustainable business for an era of profound change and political and economic volatility. 

It all starts tomorrow evening with opening remarks from BSR President and CEO Aron Cramer, followed by a keynote speech from Former U.S. Vice President Al Gore. On Wednesday, we’ll hear from National Geographic Photographer Annie Griffiths and Microsoft’s Brad Smith, among many others. And Thursday we’ll feature a panel on Corporations and the Challenge of the Global Refugee Crisis, featuring TripAdvisor’s Stephen Kaufer, Mercy Corps’ Neal Keny-Guyer, and Mastercard Center for Inclusive Growth’s Shamina Singh, as well as a presentation from Morgan Stanley’s Audrey Choi. We’ll close the Conference with a keynote address from Planned Parenthood’s Cecile Richards.

Whether you’re joining us in person or online, here are the best ways to follow along:

1. Catch the livestream.

We’ll broadcast our plenary sessions on Wednesday and Thursday in a live video feed. Visit the livestream registration page to sign up and join in.

2. Get social.

No matter your favorite social media platform, we’ll be there:

• Twitter: We’ll live tweet nearly the entire event from @BSRnews using the hashtag #BSR17. 
  
  
  
  
   
• Instagram: Follow our Instagram account, @bsrorg, for exclusive, behind-the-scenes looks at the Conference. Post your photos using #BSR17—and don’t forget to tag us!
  
  
   
• Find out more information and join in the conversation on Facebook, LinkedIn, and Flickr.

3. Ask questions. 

We’re opening up our plenary sessions for questions from Twitter—while you’re watching our livestream, ask our keynote speakers about their experiences using #BSR17.

4. Follow up.

We’ll have videos, wrap-ups, and other content available after the event, so be sure to visit the BSR blog, our YouTube channel, and the BSR Conference website.

Single-day passes are still available, so if you’re in the area, join us! Whether you’re with us in the plenary hall or participating virtually from your desk this week, we look forward to hearing your thoughts on #BSR17.

Blog | Friday October 20, 2017

Practical Guidance from the Frontlines of the Corporate Fight against Modern Slavery

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Having worked to combat human trafficking through my roles in the U.S. government, a global NGO, and, most recently, inside a Fortune 500 company, I see momentum building on this issue in the corporate world like never before. As practitioners, we are past the stage of asking what needs to be done; we are now asking how it should be done. Answering this question will require innovation, agility, and collaboration—all strengths found in successful businesses.

My colleagues across the globe in major corporations have tremendous reach on the frontlines of the fight against modern slavery. Many of them have seen abuses and the damage done to workers firsthand, and they also have pragmatic solutions to prevent trafficking in global supply chains. Working within a company, the challenges to taking effective action to address these issues are often both internal and external.

Here are my recommendations for building an effective program to address modern slavery:

Internally

• Seek Executive Support: In creating a program, it is critical to gain leadership buy-in from the outset, with budget and resources to take the necessary first steps. 
• Never Waste a Crisis: If and when your firm is spotlighted for alleged human rights abuses, act quickly and decisively, and use the opportunity to further embed good human rights practices deep in your established management systems. 
• Identify and Celebrate Your Allies: Leverage every ally you have within your company. It shouldn’t look like you are solving the problem alone—the most sustainable solutions come when actions flow from and into traditional business functions.
• Illustrate the Issue: Be creative in explaining the human rights challenge you are facing. For example, CH2M used an infographic to show how it addressed the conditions of construction workers on engineering projects. Clear, visual communication can go a long way to helping your colleagues understand why it is time to act.
• Embrace Transparency and Flexibility: Addressing modern slavery requires transparency and humility—characteristics that may be counterintuitive to the polished image that many corporate brands aspire to project. If your innovative pilot project goes off track or has unintended negative consequences, be candid about your experience and try another tactic.

Externally

• Be Open to Feedback (Positive and Negative): It can be difficult for companies to be taken seriously by NGO advocates, and it can be disheartening to hear criticism of an approach you are working hard to execute. Don’t react defensively—recognize that your civil society colleagues have a job to do, as you have yours, and we can learn from each other.
• Collaborate with Your Peers: Join or create a pre-competitive industry coalition, like Building Responsibly, which is a global initiative of the engineering and construction industries, supported by BSR and Humanity United, to promote the rights and welfare of construction workers. Learning from other sectors, Building Responsibly is modeled after the successful initiatives that the Electronic Industry Citizenship Coalition (EICC) champions. The Global Business Coalition Against Human Trafficking (gBCAT), which BSR supports, is another example of cross-industry collaboration on human rights.
• Share Your Experiences: I recently had the privilege of joining a BSR Human Rights Working Group meeting. With more than 20 companies around the table, we reviewed ideas and strategies on how to prevent slavery in supply chains. It was energizing to see so many empowered and talented corporate professionals candidly discussing their plans and challenges as they strive to embed human rights principles in their management systems.  

In my work to combat modern slavery over the years, I have seen that there are always new tools to develop, new solutions to propose, and new allies to be found. So, for those of us tackling this issue, let’s work together to use our collective talent, power, and reach to make global supply chains a source of empowerment and opportunity for workers across the globe.

I’m looking forward to candid conversations about solutions in this space at the BSR Conference in Huntington Beach, California, next week, during sessions like Human Trafficking and Modern Day Slavery and Protecting Workers on the Move. I hope to see you there.

Blog | Wednesday October 18, 2017

Why Business Supported the Clean Power Plan: It Made Economic Sense

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The last few weeks in the United States have seen an unprecedented number of consecutive natural disasters—including both hurricanes and wildfires—exacerbated by our changing climate. In fact, a September poll shows that a majority of Americans assess that it is likely that climate change indeed worsened the impact of these events.

In this context of heightened public awareness and increased devastation due to climate change, EPA Administrator Scott Pruitt signed a rule last week that will begin to roll back the Clean Power Plan (CPP). The Administrator made an economic argument in support of the repeal, claiming that regulations “ought to work with folks all over the country and say, 'how do we achieve better incomes by working with industry, not against industry'.”

However, all evidence points to the fact that climate action is good for the economy. That’s why many companies in the private sector have supported the CPP, arguing that it is good for business.

The state of California, which has the sixth-largest economy in the world, is in many ways a poster child for this argument: In 2015, California simultaneously reduced its greenhouse gas emissions and achieved its strongest economic growth since 2005. The state has some of the most ambitious climate targets in the United States, and in 2016, it created more jobs than any other state for the third year in a row.

California isn’t unique. The renewable energy industry overall is creating jobs at a rate of 12 times the rest of the U.S. economy. One recent study found that putting cities on a climate-friendly growth trajectory could save as much as US$22 billion by 2050 and avoid carbon emissions equal to India’s entire annual footprint.

The private sector sees this. When the CPP was instated in 2015, 365 companies and investors, including General Mills, Mars Inc., Nestle, Staples, Unilever, and VF Corporation, wrote a letter in support of the plan. In it, they stated that their “support [was] firmly grounded in economic reality … Clean energy solutions are cost effective and innovative ways to drive investment and reduce greenhouse gas emissions. Increasingly, businesses rely on renewable energy and energy efficiency solutions to cut costs and improve corporation performance.”

Since then, four of America’s largest companies—Amazon, Apple, Google, and Microsoft—filed amicus briefs in support of the CPP. As large consumers of electricity, these businesses sought to limit their environmental impacts in response to concerns about climate change. While they have developed their own renewable energy facilities to meet their sustainability goals, they argued that the Clean Power Plan would provide them with more and more cost-effective options. 

Even in the traditional energy industry, which arguably is more vested in a coal-friendly future than business writ large, not all companies have the same perspective on the CPP. While Peabody, America’s biggest coal miner (which came back from bankruptcy under the new U.S. presidency), welcomed the repeal, utilities have not been as vocally opposed. In fact, Reuters found that of 32 utilities in the 26 states that filed lawsuits over the CPP, “the bulk of them have no plans to alter their multi-billion dollar, years-long shift away from coal.” 

Business action in favor of climate-compatible solutions gained momentum leading up to the Paris Agreement in 2015, and it has continued since. For example, 619 companies are taking bold climate action through the We Mean Business coalition, which represents a market capitalization of US$15.5 trillion, including 32 companies with individual market capitalizations of more than US$100 billion. These companies emit a total of 2.31 gigatons of in their direct operations and purchased electricity, which is equivalent to the annual emissions of the Russian Federation. Moreover, more than 100 of these influential companies are committed to sourcing 100 percent renewable power globally, working to massively increase demand for—and delivery of—renewable energy.

Not only do the economic claims of the current EPA seem unlikely, but there is increasing evidence that the agency’s policies may harm the economy. Companies recognize this, which is why we’ve seen so much business support for the CPP. It’s also why business will continue to lead on climate action more broadly, even if it must do so without the policy frameworks that support U.S. leadership on this issue. Indeed, other countries around the world, including China, increasingly recognize that climate leadership translates to economic leadership—a perspective that they are likely to be rewarded for in the long run.

Blog | Monday October 16, 2017

Q&A: The Future of Business Action on Climate Change

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As part of our Q&A series with our experts on the past, present, and future of sustainable business, we sat down with Climate Change lead David Wei to discuss innovations, opportunities, and challenges in the field.

Elisabeth Best: What has been the single most important innovation in business action on climate change in the last 25 years? 

David Wei: For climate practitioners, the adoption of the Paris Agreement in 2015 is the most important development of the past 25 years. For the first time in history, countries rich and poor alike agreed to reduce their emissions and build climate resilience. This sends a strong signal to the business community.

The agreement was as ambitious a text as 195 countries could agree on, and it includes clear long-term goals that set a new international standard to hold warming well below 2 degrees Celsius: to peak global emissions as soon as possible, rapidly reduce them to reach net zero in the second half of this century, build climate resilience, and reduce vulnerability. Equally important is the fact that the agreement asks governments to enhance their commitments every five years, repeatedly creating opportunities to push the global emissions trajectory downward.

Best: What does sustainable business, specifically as it relates to climate change, look like in 2030? 

Wei: It’s only 2017, but emissions reductions in direct operations are already becoming mainstream. The business case for renewable energy procurement and energy efficiency, for example, is very strong. Leading companies are moving to new frontiers of climate action—engaging their supply chains to reduce Scope 3 emissions, assessing and disclosing the climate risks that their businesses face, and building and implementing strategies to become more resilient to those risks. 

In 2030, supply chain climate action and the integration of climate resilience throughout companies’ value chains could be mainstream sustainable business. Indeed, by 2030, high-carbon business models in energy, transport, and agriculture could be relics of the past.   

Best: What’s the biggest challenge or opportunity you see looking forward?

Wei: While our collective direction toward the resilient, low-carbon economy envisioned by the Paris Agreement remains clear, the U.S. Administration’s intention to withdraw has injected short-term uncertainty into the policy landscape, which is a challenge. However, other major economies have made their continued commitment to climate policy clear.

As the BSR/Globescan 2017 State of Sustainable Business Survey anticipated, the U.S. decision about the Paris Agreement has not changed company commitments to climate action. Indeed, climate action is warranted by a broader business case, including companies’ desires to demonstrate leadership, respond to shareholder resolutions, manage risk, address stakeholder expectations, and control energy costs. The challenge for business will be to take the broader and medium-term perspective to continue to lead on climate.  

Best: What are leading companies doing today to make a sustainable future a reality? 

Wei: More companies are engaged on climate today than ever before, and individual companies are making commitments on an unprecedented scale.

For many large companies, climate action increasingly means collaboration—no matter how ambitious these organizations are, they cannot reach their GHG emissions reduction goals without forging partnerships throughout their value chains. Leading businesses are adopting emissions reduction targets that follow a trajectory to hold warming well below 2 degrees Celsius, and they are also stepping up by engaging their suppliers to reduce emissions and build climate resilience. 

Best: What aspect of this year’s BSR Conference are you most excited about?

Wei: I’m excited about Al Gore’s opening plenary speech. I’m also looking forward to the discussion about the 2018 Global Climate Action Summit, which BSR is proud to sit on the Steering Committee for on behalf of business. The Summit will feature climate leadership from businesses, investors, cities, sub-national regions, and civil society, and demonstrate our collective impact in achieving the vision articulated by the Paris Agreement. 

Blog | Thursday October 12, 2017

Q&A: The Future of Inclusive Economy

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As part of our Q&A series with our experts on the past, present, and future of sustainable business, we sat down with Inclusive Economy lead Susan Winterberg to discuss innovations, opportunities, and challenges in the field.

Elisabeth Best: What has been the single most important innovation in inclusive economy in the last 25 years? 

Susan Winterberg: The greatest advances in the inclusive economy field have been in the area of diversity and inclusion. Looking back just 50 years, it is astounding to see how much attitudes have changed regarding women and minorities in the workplace. Similarly, business leaders have been increasingly using their voices to stand up for diversity, which became evident when the U.S. business community came out in full force earlier this year: More than 100 companies signed an amicus brief on the U.S. Executive Order on Immigration.

It continues with new business commitments to advance the rights of women, refugees, the LGBTIQ+ community, and others announced almost every week. Nonetheless, much work still needs to be done on diversity. In particular, we will need to innovate and build a better evidence base on what works to retain and promote more women and minorities in key industries and occupations, close pay gaps, and increase representation in C-suites and boards.

Best: What does sustainable business, specifically as it relates to inclusive economy, look like in 2030? 

Winterberg: The 2020s will see major disruptions in social order, to governments, and perhaps even to capitalism itself. We’ve already seen the beginnings of this: first with Occupy Wall Street and Fight for $15, and more recently with the outcomes of the Brexit vote, the U.S. election, and a surge of interest in nationalist movements around the world. There are three major issues that business leaders will have to grapple with in the coming decade if we are going to have an inclusive, safe, and sustainable world in 2030: good jobs, taxes, and lobbying.   

A strong and secure middle class; a healthy government with fiscal capacity to fund education, infrastructure, and safety nets; and functioning democratic institutions are requirements for a peaceful and prosperous society. Many of the companies I have spoken to about the need to address these issues—particularly as they relate to their operations in the U.S. and other advanced economies—seem to see them as outside the purview of the sustainability department. However, these issues will become more critical—and sustainability professionals will be increasingly asked to address them—in the coming years.

Best: What’s the biggest challenge or opportunity you see looking forward?

Winterberg: Automation will be by far the biggest opportunity and challenge to an inclusive economy in the next decade. Technologies like artificial intelligence, big data, sensors, and autonomous vehicles will bring so many benefits to society—from enhanced health and safety to consumer convenience. Yet these technologies will also pose some hard questions on issues of privacy and discrimination. They will displace large numbers of people who will need to be retrained, and they will likely result in pockets of high unemployment in those communities most strongly affected by these changes. Companies need to begin preparing now to ensure a sustainable transition toward automation.

Best: What are leading companies doing today to make a sustainable future a reality? 

Winterberg: Companies are taking action on promoting a more inclusive economy through three main mechanisms: creating good jobs, expanding access to products, and engaging with society.  

Leading companies are thinking about good jobs by treating contingent workers more fairly, investing in training and career paths, creating predictable scheduling, increasing benefits coverage, and developing profit-sharing programs. They are also starting to develop ways to expand their diversity and inclusion efforts to include more groups who face challenges in employment. We have seen pioneering efforts to promote other types of diversity, like neurodiversity, and to create enhanced opportunities through their global supply chains through impact sourcing. Companies have also been increasingly vocal on key public policy issues affecting inclusion, from immigration to health care access.

Best: What aspect of this year’s BSR Conference are you most excited about?  

Winterberg: BSR is launching a new Sustainable Futures Lab—and we have a great line-up of sessions this year looking at sustainability challenges that will arise from new technologies: The 21st Century Social Contract, Ethics of Artificial Intelligence, Inclusive by Design, Human Rights by Design, The Just Transition, and Transportation of Tomorrow. I’m most excited to hear how companies are getting ahead of the curve and integrating concerns for ethics, inclusion, and human rights into their R&D processes to make a sustainable future a reality.