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Blog | Friday June 1, 2018

Where BSR Will Be in June 2018

Preview

BSR staff are on the move at sustainability-related events around the world this month. From our own “Redefining Sustainable Business” event series to Sustainable Brands, the BBB Forum, and Devex World, here are the events we’ll host, attend, and speak at this June.

What We’ll Host

• June 6: BSR will hold a members-only webinar on how artificial intelligence is delivering new insight and foresight on trends, stakeholders, and issues that can help companies enhance decision-making and build trust. Sustainability Management Managing Director Alison Taylor will speak.
• June 7: The HERproject team will host the second Brand Convening of 2018 in Hong Kong. HERproject Director Christine Svarer, Manager Cherry Lin, and Manager Marat Yu will speak.
• June 13: The Healthy Business Coalition will host a Sustainability Matters webinar on how companies can track and scale healthy business programs. Senior Vice President Laura Gitman will speak.
• June 21: BSR will host the first event of our invitation-only “Redefining Sustainable Business” series on business and the 21st-century social contract in New York. President and CEO Aron Cramer and Sustainable Futures Lab Director Jacob Park will speak.
• June 21: Managing Director Tara Norton and Manager Charlotte Bancilhon will host a half-day convening in New York about how embedding environmental, labor, and human rights considerations into supply chain finance mechanisms can help achieve business and sustainability goals.
• June 28: Information and Communications Technology Associate Director Michael Rohwer and Manager Kelly Gallo will host our San Francisco “Redefining Sustainable Business” event on the future of sustainable business in the Bay Area.

Where We’ll Be

• June 1: Managing Director Elisa Niemtzow will attend the 1.618 Sustainable Luxury Biennale in Paris.
• June 4: Rohwer, Manager Nate Springer, and Manager Berkley Rothmeier will attend Sustainable Brands 2018 in Vancouver. Springer will speak in the session "Science-Based Targets: Lessons from Retailers for Retailers."
• June 4-5: Cramer will attend the BSR board meeting in Paris.
• June 5: Maritime Anti-Corruption Network (MACN) Program Director Cecilia Müller Torbrand will present a paper on maritime corruption to the International Maritime Organisation in London.
• June 5-6: Taylor will attend RI Europe 2018 in London.  
• June 6: Associate Director Giulio Berruti will attend the launch event of the RE-Source platform and IRENA's Global Reference Index for Corporate Sourcing of Renewable Energy in Brussels.
• June 7: Manager Margaux Yost will moderate the panel “Gender and Workplace Safety in the Supply Chain” at IDH4Gender in Nairobi.
• June 11: Norton will be the keynote speaker at the Austrian Federal Ministry for Digital and Economic Affairs discussion forum, “Digitization and Responsibility in Global Supply Chains” in Vienna.
• June 12: Gitman will moderate a panel of sustainability leaders at the BBB Forum on Corporate Responsibility in New York.
• June 12: Director Angie Farrag-Thibault will facilitate an Airlines, Shippers, and Forwarders meeting organized by BSR in Düsseldorf. Berruti, Springer, and Associate Gareth Scheerder will participate in the event.
• June 12: Associate Director Cecile Oger and Manager Byron Austin will host the Healthcare Working Group in-person spring meeting in our Paris office. 
• June 12-13: Associate Léa Farnier will attend the ADEME Climate meeting in Paris. 
• June 12-13: Manager Magali Barraja will speak on the panel “Bridging the Gap—Getting the Business Benefits of Gender Equality” at the amfori Unleash Opportunity annual conference in Amsterdam. Manager Cliodhnagh Conlon will attend.
• June 13: Manager Mark Williams will join as a special guest panelist in an online stakeholder forum focused on SDG 8 hosted by GlobeScan.
• June 13-15: Farrag-Thibault, Berruti, Springer, and Scheerder will facilitate the Clean Cargo Working Group (CCWG) members meeting in Bonn, Germany. 
• June 14-15: Cramer will attend a meeting of the Global Climate Action Summit Advisory Committee in New York.
• June 18-23: Director David Wei and Manager Samantha Harris will attend the Adaptation Futures Conference in Cape Town, South Africa. Harris will present BSR’s research on private-sector climate risk and resilience.
• June 19-20: Berruti will attend the event “How Business Can Measure the Impact—and ROI—of Corporate Sustainability” in London.
• June 20-21: Farrag-Thibault, Human Rights Director Peter Nestor, and Associate Michaela Lee will facilitate the Building Responsibly members meeting and stakeholder convening in London.
• June 21: Associate Director Karlyn Adams will speak on behalf of Green Freight Asia on sustainable logistics as competitive advantage at the International Smart Logistics and Supply Chain Congress in Singapore.
• June 21: Director Jeffrey Crawford will attend Devex World 2018 in Washington, D.C.
• June 25: Farrag-Thibault will participate in the Transforming Heavy Transport workshop at WBCSD in Geneva.
• June 26-27: Manager Ouida Chichester will speak on a panel on “Solutions to Women’s Employment in Extractives” at the World Bank’s Gender and Oil, Gas and Mining: New Frontiers of Progress, Challenges and Solutions conference in Washington, D.C.
• June 29: Müller Torbrand will attend the SeaTrade Awards ceremony in London; both MACN and CCWG have been nominated for the CSR award.

Blog | Thursday May 3, 2018

Where BSR Will Be in May 2018

Preview

This month, as we prepare to launch registration for the BSR Conference 2018 (stay tuned, and join our mailing list if you want to hear about it!), we’re also hosting, attending, and speaking at several other sustainability events around the world.

From the UN climate negotiations in Germany, to the Copenhagen Fashion Summit, to events about the Global Climate Action Summit, here’s where we’ll be in May.

What We’ll Host

• May 3: Senior Vice President Eric Olson, Consumer Sectors Director Jorgette Mariñez, and Manager Byron Austin will host a dinner with sustainability leaders to discuss a shared agenda for 21st-century business in Chicago.
• May 15: President and CEO Aron Cramer and Manager Kelly Gallo will host an event at the Salesforce Offices in San Francisco for businesses to learn more about the Global Climate Action Summit and opportunities to engage.
• May 16: Cramer and Gallo will host a webinar to share information about the Global Climate Action Summit. This webinar will be held at two times for our global audiences.
• May 16: We will celebrate our 10th anniversary in New York with a happy hour.
• May 24: Our Paris office will hold a BSR Connect event on the French due diligence law and the strategic importance of a human rights impact assessment for companies as part of their vigilance plans.

Where We’ll Be

• April 30-May 10: Climate Director David Wei, Manager Samantha Harris, and Associate Katie Abbott will attend the UN climate negotiations in Bonn, Germany.
• May 1: Sustainable Futures Lab Director Jacob Park and Manager Jonathan Morris will attend the Task Force on Climate-Related Financial Disclosures' U.S. Scenario Analysis Conference, hosted by Bloomberg LP in New York.
• May 4: Maritime Anti-Corruption Network Program Director Cecilia Müller Torbrand will speak at the 3rd Annual Global Anti-Corruption and Compliance Summit in Amsterdam.
• May 4: Manager Salah Husseini will speak on the 49th Symposium on International Relations panel entitled “Protecting Workers’ Rights: A Global Perspective on the Role of Business and Other Stakeholders” in New Haven, Connecticut.
• May 9: Harris will moderate a panel during the UN climate negotiations on “The Role of Women in Climate-Resilient Supply Chains” in Bonn.
• May 15-16: Senior Vice President Peder Michael Pruzan-Jorgensen will moderate the session on “Digitalization and the Future of Fashion” with Spencer Fung, CEO of the Li & Fung Group, at the Copenhagen Fashion Summit. Managing Director Elisa Niemtzow will attend the event.
• May 16-17: Managing Director Tara Norton will attend the World Procurement Congress 18 in London.
• May 16-17: Morris will attend the Luxe Pack New York creative/luxury packaging tradeshow in New York.
• May 16-18: Managing Director Dunstan Allison-Hope and Associate Michaela Lee will attend RightsCon in Toronto. Allison-Hope will moderate a panel on the new frontier for law enforcement relationship reporting.
• May 17: Associate Director Michael Rohwer will speak on conflict minerals reporting at the Silicon Valley Conflict Minerals and Human Trafficking Forum in Sunnyvale, California.
• May 17: Sustainability Management Managing Director Alison Taylor will speak at the Transparency International 8th Annual Day of Dialogue in Toronto.
• May 21-25: Manager Berkley Rothmeier will attend the Sustainable Apparel Coalition annual meeting in Vancouver.
• May 23-24: Manager Lauren Shields will speak in sessions on gender equality and workers’ voices at the 2018 Global Sustainability Standards Conference in Sao Paulo, Brazil.
• May 29-30: Taylor will attend the OECD Forum in Paris.
• May 31: Cramer will deliver a keynote speech at the Global Mining Human Resources Forum in Toronto.

Blog | Tuesday November 12, 2019

The State of Sustainable Business 2019: Toward a Critical Decade

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When BSR launched its first State of Sustainable Business survey with GlobeScan in 2008, it would have been inconceivable for influential corporate leaders and major investors to engage in a very public, candid, and existential conversation questioning the future viability of capitalism, the foundation of our economic and social systems for the past three centuries.

Fast forward to 2019: We see influential CEOs declaring that “capitalism as we know it is dead” and calling for a new capitalism that values purpose alongside profit. The CEOs of the Business Roundtable have essentially called for a redefinition of the purpose of a corporation, embracing a form of “conscious capitalism” in which the need to deliver value to all stakeholders has surpassed the previously unchallenged primacy of shareholders. 

These are welcome and long-overdue conversations and developments and provide a particularly compelling backdrop for us to unveil the findings of our 11th annual State of Sustainable Business survey, which includes responses from business leaders representing 125 global companies—half of BSR’s global membership network. As it has been since its launch, the survey features the perspective of the business leaders who do sustainability work daily inside some of the largest and most influential companies in the world.

This survey is also our last before we move into the 2020s, and as many companies had sustainability strategies with a 2020 end date, we wanted to find out how our members think they fared. More than half of BSR companies surveyed reported having a sustainability strategy with a 2020 end date or milestone, but only 45 percent of those said they considered their company to have achieved a great deal of success in reaching their objectives—which suggests we are off track to achieve global sustainability targets. 

We need business to dramatically increase its sustainability ambitions over the coming decade. 

Given the urgency of bending the curve on emissions and lifting communities and people out of poverty while supporting fundamental human rights, the message here is clear: We need business to dramatically increase its sustainability ambitions over the coming decade. 

Furthermore, to truly achieve the sustainable change we need, significantly more effort must focus on a company’s value chain. Half of respondents say their efforts to address sustainability within supply chains have been ineffective—though they report being more effective in cases where they have been able to apply new technologies like blockchain.

One of the more interesting findings was that while a majority of companies plan on embedding sustainability more deeply into the business, less than half will be emphasizing long-term value creation, and fewer still are focused on trying to influence policy-making frameworks. 

While about half of companies report a “fair amount” of focus on public policy across all issues, with human rights and climate change drawing somewhat more attention than inclusive growth and women’s empowerment, we do see an opportunity for companies to make it more of a focal point. Given the significant business influence over policy frameworks and the urgency of achieving sustainability goals, we hope to see more companies speaking out strongly on these vital issues.

Another noteworthy insight is that investor interest has become a major driver of corporate sustainability efforts overall. While reputation risks and customer/consumer demand continue to be identified as the most important drivers of company sustainability efforts, professionals citing investor interest as one of key drivers of sustainability efforts has increased significantly over the past year, with 40 percent citing it as a top three driver, up from 25 percent in 2018.  

The integration of sustainability into the core of business strategy continues to be an opportunity for more ambitious company action. Despite continued CEO focus—more than half of companies say sustainability is among their CEOs’ top five priorities—and rising investor interest, little has changed in the past three years in the level of self-reported integration of sustainability into the core of the business.  

Overall, 66 percent of companies say that sustainability is at least fairly well integrated, exactly the same as it was in 2016. Integration of sustainability into strategic planning and into products and services is being pursued by only about half of the companies surveyed. 

Climate change, ethics and integrity, diversity and inclusion, and human rights remain the top sustainability priorities for companies. 

As we move into the 2020s, the survey also revealed that climate change, ethics and integrity, diversity and inclusion, and human rights remain the top sustainability priorities for companies. 

However, in 2019, climate change has emerged from the pack, making a significant jump with more than 50 percent of respondents citing it as a “very significant” priority over the coming year. Company leaders exploring how they can move toward net-zero carbon emissions, while also assessing their climate risk scenarios, are no doubt also well aware of the increased sense of urgency expressed by scientists and other experts and the surge of public demonstrations demanding urgent action to limit global temperature rise to 1.5°C.   

It is worth noting that despite its ranking as a top corporate priority, the survey reveals minimal movement in the number of companies setting an internal price on carbon.  Only 31 percent of companies either already have, or are moving to implement, an internal carbon price. In addition, only one-third of companies say they are focused on managing climate change through tier-2 suppliers and supply chains. Most businesses with science-based targets will need to address these emissions as part of the global effort to bend the curve on emissions and limit global temperature rise to 1.5°C.

Companies are becoming more interested in deepening their relationship with stakeholders. 

Finally, we were heartened to discover that companies are becoming more interested in deepening their relationship with stakeholders. As we noted in our report, Five Steps to Stakeholder Engagement, earlier this year, we are living in an era of increased investor interest, widely accepted international agreements, heightened public transparency, and a digital media environment in which information is shared at lightning speed. Stakeholder engagement is more important than ever, and the fact that companies are taking it seriously is good news indeed.

We will be looking forward to connecting with our own stakeholders, including our members and other partners from business, civil society, and the broader sustainability community, at the BSR Conference 2019 in San Jose this week, where The New Climate for Business will take center stage. We’ll discuss our common challenges, and the opportunities for stepped-up corporate action on sustainability as we prepare for the critical decade of the 2020s.

Blog | Wednesday September 14, 2022

“And” May Be the Most Important Word

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Editor's Note: We are living through a time of profound and accelerating change. Our world has been rocked by a series of disruptions: COVID-19, war and social conflict, rollback of rights and democracy, and now high inflation and the risk of recession. These developments have jolted society and business.

To help our 300+ member companies navigate this volatile environment, we're releasing a series of blogs to build insight into how to shape business approaches that address this unique moment. Following last month’s piece on the role of business in combating societal fragmentation, today we focus on how new laws, regulations, and standards mark the beginning of a new era.

We’ll conclude with a deeper dive into how BSR’s 2025 strategy can help your company to navigate these turbulent times—and how you can collaborate with our global network to push us further, faster, to achieve a more equitable, just world for all.

The field of just and sustainable business stands at the threshold of a new era.

Governments are establishing new laws and regulations that will inevitably reshape the way companies address sustainability risks and opportunities, including how due diligence is conducted, how decisions are made, and how risks are disclosed. 

The twin EU directives on reporting and due diligence, the SEC’s proposed climate disclosure rule, and revisions to Japan’s Corporate Governance Code promise to be especially influential.

Standards-setting bodies are accelerating progress toward harmonized reporting frameworks. The International Sustainability Standards Board (ISSB) brings together standards for disclosing the impact of sustainability on enterprise value creation, while the Global Reporting Initiative (GRI) has integrated the UN Guiding Principles on Business and Human Rights (UNGPs) and continues to evolve sustainability standards. 

The GRI is also known for collaborating with the European Financial Reporting Advisory Group (EFRAG) and for co-creating the European Sustainability Reporting Standards (ESRS), which will become mandatory under the CSRD.

However, the dialogue about how companies can navigate this new era of decisive change often emphasizes binary choices.

Does today’s focus on “applying the standards” limit more entrepreneurial approaches to just and sustainable business? Will the emphasis on “ensuring compliance” overshadow more ambitious priorities and become a tick-box exercise? Does the instinct to cover everything listed in the new standards undermine the principle of materiality and the company’s ability to focus on what’s most important?

Rather than seeing these as “either-or” options, we believe that “and” is the most important word for this new era of just and sustainable business. 

While we recognize the obvious tensions inherent in these binary questions, we believe this can be creative rather than destructive. We encourage companies to see this new era of just and sustainable business as an opportunity to define new approaches. 

Entrepreneurship AND Standards

When BSR was founded in 1992, there were no sustainability standards, and everyone in the field needed to be an entrepreneur. We made everything up as we went along, trusting our instinct, using our values as a guide, and creating new approaches based on first principles. Thirty years later, we have standards left, right, and center, and everyone in the field has become hyper-focused on “how we apply the standard in practice.” In doing so, companies risk getting trapped in believing that there is only one “right” approach to just and sustainable business, with little innovation.

It is essential to find a final balance. We can be entrepreneurs and continue exploring ways of doing things better than before, and we need to apply standards so that we can adhere to collective expectations. Indeed, some of the best innovation happens in constrained conditions, so let’s view these new standards as helpful design constraints.

Ambition AND Compliance

Before this new era, compliance efforts made an important but somewhat limited contribution to the field, mainly showing up in labor standards, environmental management, and anti-corruption. By contrast, companies had a huge blank canvas upon which goals could be established, strategies launched, and sustainability reports written. Today, the tide of new standards and regulations raises the standard for everyone and ensures that all companies will undertake a certain amount of “just and sustainable business”—for example, the CSRD will push nearly 50,000 companies in the EU to consider sustainability as part of board discussions.

On the other hand, we fear that the focus on compliance risks is detracting from the original intention, purpose, and spirit of laws, regulations, and standards being implemented. We risk forgetting why we do what we do.

We need to have the discipline of compliance and stand up to the increased scrutiny that will accompany it, but we must also stay true to our transformative ambition and not shy away from the bold goals, innovation, and systemic change that are needed to achieve a just and sustainable world and build resilient businesses for long-term value.

Materiality AND Comparability

Over the past two decades, it has become abundantly clear that companies should focus resources on the most significant issues, no matter how materiality is defined by a company. But while the concept of materiality features prominently in the laws, regulations, and standards of the new era, we hear from BSR member companies a countervailing trend—the instinct to limit legal liability and not to be “caught out” leads to a quest for companies to cover every potential issue referenced in every law, regulation, and standard. Call it the “C.Y.A. approach” to just and sustainable business. 

We need to achieve both. BSR believes that a “comply or explain” approach to disclosure will give companies the time and space to put meaningful and rigorous policies and new systems in place for material issues.

We are struck by the sheer reach, ambition, and comprehensiveness of the laws, regulations, and standards that are a defining feature of this new era of just and sustainable business. We urge companies to pay close attention to them because they will surely transform the field of just and sustainable business, impact a company’s business strategy and day-to-day operations, and dramatically change how sustainability is governed within companies.

However, we believe that this important focus on standards, compliance, and comparability should not be accompanied by a rejection of the entrepreneurship and ambition that got us this far. We encourage companies to take creative approaches to the tensions that will undoubtedly arise and seek to achieve both the letter and the spirit of laws, regulations, and standards. 

At BSR, we are working with our member companies to map regulatory requirements and assess their preparedness. We also help our member companies develop the ambitious strategies, goals, and targets necessary for a just and sustainable future.

Blog | Thursday July 14, 2022

Delaying Climate Action: The Challenges of Moderating Climate Misinformation on Social Media

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Misinformation about climate change has been around for decades, mostly in the form of climate denialism. Today, climate misinformation is focused on seeding doubt about climate science and the measures that are taken to mitigate climate change. Examples include: suggesting that the consequences of global warming may not be as bad as scientists claim, arguing that climate change policies are bad for the economy or national security, describing clean energy as unreliable, or claiming that no action will be able to halt climate change.

These varying manifestations of climate misinformation all have the same outcome: delaying climate action.

Earlier this year, the IPCC drew attention to the impacts of climate misinformation for the first time:

Vested interests have generated rhetoric and misinformation that undermines climate science and disregards risk and urgency. Resultant public misperception of climate risks and polarized public support for climate action is delaying urgent adaptation planning and implementation.

Social media brings both opportunities and risks to the climate science dialogue. Scientific information related to climate change is accessible to larger populations through social media platforms—including real-life experiences of affected populations. On the other hand, social media can significantly undermine climate science by allowing for the rapid and widespread sharing of misinformation through user-generated content and online advertising. Social media platforms are also just one part of the information ecosystem, which also includes news media and professionally created entertainment.

At a point when delays in climate action may lead to catastrophic and irreversible harm, companies must address climate misinformation urgently and decisively. 

In 2021, Ford Foundation, the Ariadne Network, and Mozilla Foundation commissioned a research project to explore grantmaking strategies that can address issues at the intersection of environmental justice and digital rights. As part of this project, BSR wrote an issue brief on the role of social media companies in creating, shaping, and maintaining a high-quality climate science information environment.

The brief explores the specific challenges of moderating climate misinformation. We describe some of these challenges below:

• Climate Misinformation Is Happening in “Subtler” Ways and Is Increasingly Intersectional.
  While outright climate denialism is easy to refute, it is more difficult to identify subtle ways of spreading climate misinformation—such as claims that green policies are too costly. The response to climate change is a topic of political debate, making climate misinformation closely tied to politics, elections, and the larger civic space. These intersectional ties help grow the reach of misinformation and take it to different levels that can be difficult to anticipate.

• Existing Content Moderation Frameworks Are Not Sufficient in Addressing Climate Misinformation.
  Most of the content moderation principles and frameworks used by social media platforms today were written to address immediate harms related to hate speech, incitement to violence, and other objectionable content, and they are not as applicable for scientific misinformation that may be associated with broader, longer-term harms.

• Content Removals May Not Be Adequately Effective in Fighting Scientific Misinformation.
  While the removal of content is effective in fighting harmful content such as hate speech, scientific misinformation may require different approaches. Platforms should not only rely on content removal but also focus on tactics to reduce the visibility of misinformation and display high-quality information to inform users.

• Climate Misinformation Is Political and Is Backed by Institutions.
  Since the 1980s, climate disinformation campaigns have been largely driven by the fossil fuel industry’s intentional efforts to undermine climate science. Today, climate misinformation can still typically be traced to fossil fuel interests. In addressing climate misinformation, it is important to consider the material incentives of the producers of such content.

In our brief, we make recommendations to social media companies, as well as civil society actors, and funders. These include the addition of climate misinformation under content policies, applying content moderation frameworks to climate misinformation, strengthening fact-checking capabilities, investing in user resiliency, and increasing scrutiny on advertising by oil and gas companies. We envision a high-quality climate science information environment that supports informed public debate, ambitious business action, and science-based policy making.

Social media companies have made significant commitments to reduce the climate impacts of their businesses (i.e., reducing GHG emissions), but they also have a responsibility to address the potential harms that they may be connected to through climate misinformation on their platforms. 

Civil society groups and funders have an essential role to play in holding companies accountable for their actions or omissions to address climate misinformation and keep this topic on the agenda. Among these actors, it is our observation that environmental groups are less familiar about the practical challenges, complexities, and nuance of misinformation, and the content governance community is less familiar with how climate information can adversely impact our collective efforts to address the climate crisis. These communities would benefit from increased collaboration and knowledge sharing.

Fostering a deeper understanding of this topic across sectors will not only help remove one of the biggest barriers in the way of climate action, but it will also broaden our understanding of scientific information, and how human rights may be impacted online. 

BSR will continue to work with social media companies, civil society groups, and funders on this topic. Please reach out if you’re interested in connecting with us.

Blog | Wednesday November 6, 2019

The Case for Prioritizing Net Zero Carbon Emissions, Especially in Value Chains

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As we breathe smoky air from another devastating wildfire that is threatening Northern California communities, we are once again reminded of the need to aggressively address climate change locally and around the globe.

The fires follow catastrophic damage from Hurricane Dorian in the Bahamas and historic flooding in the Midwest. As the frequency and strength of extreme weather events increase, the effect of climate change on our planet and communities has become ever present—making it harder for citizens, governments, and businesses worldwide to ignore the impact.

Kaiser Permanente and BSR recently partnered with Newsweek for a survey of 300-plus multinational companies on progress toward carbon neutrality and found that 70 percent of corporations are experiencing disruptions in operations due to climate change. Now, these businesses’ efforts to reduce their carbon footprint and integrate sustainable practices into their operations have created new challenges—and opportunities—for global supply chains.

According to the 2018 National Climate Assessment, we must achieve net zero carbon emissions by 2050 or earlier to prevent irreversible harm to our planet’s health. Newsweek’s survey results indicate momentum is building across industries to embrace sustainable programs.

For example, we were encouraged to find that 76 percent of companies surveyed have set a goal to achieve net zero carbon emissions from organizations’ operations, with 90 percent aiming to reach this goal by 2030.

These findings reinforce the urgency of the situation at hand and spotlight the importance of developing adaptable policies and building resilience to stay afloat. To do so, companies must learn to prepare, plan, and adapt to changing environmental conditions to mitigate risk for the climate, customers, and bottom line.

Many businesses’ primary motivation to achieve carbon neutrality is insulation from future climate risks.

Disruptions in the Supply Chain

Globally, seven in 10 respondents reported that climate-related events had disrupted supply chains over the past year, with six in 10 experiencing direct impacts to their operations.

As seen in the aftermath of Hurricane Maria, climate-fueled events can rupture the global supply chain, leading to months of nationwide shortages for crucial supplies like saline bags at hospitals, including Kaiser Permanente’s.

Witnessing the sometimes devastating effects of climate change firsthand, it comes as no surprise that many businesses’ primary motivation to achieve carbon neutrality is insulation from future climate risks. For companies like Kaiser Permanente, this means embedding efforts to mitigate climate change into day-to-day operations—including how the company manages buildings; purchases food, medical supplies, and equipment; consumes energy; and processes waste. By reducing emissions through climate smart programs and advancing environmental stewardship across supply chains, organizations can catalyze decarbonization across the economy.

Reducing Upstream and Downstream Emissions

Focusing only on emissions that companies have under their direct ownership or operational control misses those which occur through the products and services businesses purchase and also in how their own products and services are used.

In fact, these so-called “Scope 3 emissions” account for the largest volume of emissions that companies can influence. Reducing emissions associated within a company’s value chain offers the potential for aggressively mitigating the worst impacts of climate change.

Examples of climate smart actions in the value chain include:

• Purchasing from suppliers with lower carbon emissions
• Increasing product lifespans and reducing waste
• Reducing vehicle trips by employees and customers
• Shifting investments away from fossil fuels

By addressing emissions and encouraging suppliers to follow suit, corporations targeting Scope 3 emissions are leading the charge toward net zero.

In addition to revising procurement standards, our survey results indicate leaders actively engage and support key suppliers to reduce emissions—with six in 10 executives recognizing the imperative for companies’ main suppliers to switch to renewables as part of the organization’s net zero goals.

BSR encourages its network of members to set results-driven goals and embrace an “act, enable, influence” framework to advance an effective climate strategy.

By first acting to address operational emissions, companies can then encourage and enable action by suppliers and partners to reduce downstream and upstream emissions at scale. However, Scope 3 emissions are often spread thinly across supply chains, so without an effective influence strategy, companies will not foster the policy environment needed to achieve these goals. By addressing emissions and encouraging suppliers to follow suit, corporations targeting Scope 3 emissions are leading the charge toward net zero.

A Shared Goal for All: Collaborating for a Healthier Planet

The path to achieving net zero by 2050 isn’t easy, but it’s achievable. No one organization, industry, or government can do it alone and it will take a collaborative, coordinated effort to succeed.

Leading organizations are setting themselves apart by embedding a core commitment to sustainability within their existing corporate mission. Enacting such a cohesive strategy will solidify partnerships, which is ultimately the driving force for change in the space. On average, survey respondents with net zero goals listed 10 partners from a list of 18 that they believe will have a material impact on achieving defined goals. By involving key leaders in the sustainability field, businesses can accelerate success in reaching these target numbers.

The road to net zero will require continued public-private and cross-industry collaboration from leaders.

Join Us

Partnerships with NGOs and involvement in coalitions like RE100, a network of companies committed to sourcing 100 percent renewable energy, form a critical part of Kaiser Permanente’s zero carbon strategy—Kaiser Permanente is proud to be well on its way to being carbon neutral in operations in 2020.

At Kaiser Permanente, we prioritize partnerships to develop policies and systems that strengthen community health and protect our environment. The impact of climate change on both our environment and human health is substantial and affects everyone, with the greatest impact falling on those who are most vulnerable.  

BSR continues to build its portfolio of collaborations and coalitions aimed at enabling companies to take effective climate action. Long-standing efforts, such as the Clean Cargo Working Group, Future of Fuels, and our work with the We Mean Business coalition, have been joined in the last year by our new Value Chain Risk to Resilience platform and the formal launch of the Renewable Energy Buyers Alliance, in partnership with WWF, World Resources Institute, and the Rocky Mountain Institute.

The road to net zero will require continued public-private and cross-industry collaboration from leaders. Next week, BSR will convene thought leaders to collaborate on the path forward for businesses to address the most pressing sustainability issues, including climate change, at the BSR Conference 2019: The New Climate for Business in San Jose, California.

We invite you to join us and collaborate with like-minded organizations. Together, we will pave the way for companies, people, and the planet to thrive in this era of rapid change.

Case Studies | Tuesday June 1, 2010

ANZ: Responsible Growth in the Financial Services Industry

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The Challenge

In an era when the bank down the street is often headquartered in another country, the question of a company’s social license to operate has taken on new meaning. In this context, Australia-based ANZ asked BSR to apply its expertise in stakeholder relations in Asia as a key enabler of its strategy for expanding into new markets in the region. The company, which has a strong history of corporate responsibility at home, sought input on how to develop a new, groupwide corporate responsibility strategy to align with its business growth strategy, focusing on new target markets in China, Indonesia, and Vietnam.

Our Strategy

We developed and executed a regional stakeholder dialogue plan for ANZ to help the company understand expectations for a responsible bank in these markets.

This included planning and facilitating eight separate engagements in Beijing, Ho Chi Minh City, Hong Kong, and Jakarta. We identified the more than 55 stakeholder organizations that participated, including representatives from local and national government, multilateral institutions, peer companies, consumer protection organizations, environmental and labor NGOs, and others. We drew on BSR’s expertise in the industry and in the region, our stakeholder network, and our knowledge of advanced facilitation techniques.

The events yielded critical information on ANZ’s most material social and environmental risks and opportunities in these new regions, and also identified opportunities to build new relationships with stakeholders who will be critical to the bank’s social license to operate. Key themes such as urban sustainability, bridging urban and rural divides, and building financial capability emerged directly from these engagements and became core elements of the company’s new strategy.

Our Impact

Based on the dialogues, additional BSR research, and a two-day strategy workshop we facilitated with the company’s corporate responsibility team, BSR helped ANZ develop a new companywide corporate responsibility framework, and BSR CEO Aron Cramer joined ANZ CEO Michael Smith in the launch of the strategy in September 2009. The framework focuses on:

• Building individual prosperity: using products, services, education, and employment programs to create pathways to security and prosperity
• Contributing to thriving communities: developing local capacity to create solutions for important community issues
• Navigating growth responsibly: demonstrating responsible practices and decisions that balance economic, social, and environmental considerations

The company is now working on developing specific programs to support the framework and implementation at the country level. This includes providing specific tools and resources for bank leadership in these new markets, as well as a new network of local stakeholders who understand ANZ’s objectives and can support responsible market entry or expansion in these countries. This new platform will add value to the company’s existing work as it expands. It will also add consistency through more focused activities and communications, as ANZ implements its strategy of becoming a super-regional bank in the Asia-Pacific region.

Blog | Tuesday December 10, 2019

Human Rights Day 2019: BSR Reflections on the UN Forum on Business and Human Rights

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Under the theme "Time to Act: Governments as Catalysts for Business Respect for Human Rights," the eighth annual UN Forum on Business and Human Rights brought together over 2,000 representatives of companies, civil society, and states in Geneva in the final week of November to discuss best practices and emerging issues in business and human rights. BSR attended the event both to share our learnings from working with leading companies on business and human rights over the course of the year and to keep our finger on the pulse of the latest trends.

As we look ahead to 2020—and to the dawn of this decisive decade when the decisions we make as a society on how to address economic inequality, climate change, technological innovation, and political polarization will shape our shared future for generations to come—what are the pivotal human rights issues that businesses should be paying attention to? Here’s what we heard at the Forum:

States and regulators are responding to the call to action to protect human rights through mandatory due diligence and increased regulation.

A crucial discussion throughout the Forum highlighted the role of states and regional regulators to take on their duty to protect human rights and close the gap in implementing the UN Guiding Principles on Business and Human Rights (UNGPs), as Pillar One, the state duty to protect human rights, remains the true catalyst to realize corporate respect beyond voluntary measures.

Mandatory due diligence in national legislation is gaining ground, with the latest laws being enacted in France, the Netherlands, and Australia and with more legislation proposed. What’s more, mandatory frameworks are only expected to increase. Comments by the European Union, the Council of Europe, and the OECD all stressed the importance of policy coherence at the state and regional levels. Regional bodies such as the EU and the African Union—which will soon be publishing its first human rights and business policy—are playing a growing role in creating a level playing field and strong systems for human rights protection and business accountability. Similarly, trade investments, public procurement practices, and state involvement in investments such as mega-sporting events must integrate human rights due diligence in project screening as well as regulatory measures to ensure law and trade agreements include respect for human rights. With interventions by states from all over the globe, notable leadership was taken by northern European countries Norway, Sweden, the Netherlands, and Finland, reflecting the region’s long-standing commitment to sustainable development and human rights.

Translating businesses’ numerous commitments to gender equality will require practical action.

Equality and inclusion must be prominent enablers in realizing the UNGPs.

The world is facing a profound inequality crisis as the divide between low- and high-income groups continues to deepen and discrimination remains a burden to the realization of human rights, especially for vulnerable groups. Creating and fostering equal and inclusive societies was the theme of many sessions, with emphasis on equal workplaces and supply chains.

BSR was represented on two panels, the first on the role of the private sector in protecting LGBTI rights and the second on applying a gender lens to the UNGPs in practice. According to the panel facilitated by Dan Bross, Executive Director of the Partnership for Global LGBTI Equality (PGLE), commitment to implementing the UN Standards of Business Conduct must be a priority of business, and joint action to decriminalize sexual orientation will be central to creating inclusive workplaces and enabling regulatory environments.

Similarly, we are at a point where translating businesses’ numerous commitments to gender equality will require practical action. BSR Manager Francesca Manta’s contribution to the panel on gender and the UNGPs stressed the importance of ensuring gender-specific impacts and issues are made visible and taken into account by using a new framework for context analysis and data collection in global supply chains. Diversity and Inclusion policies and commitments to the Women’s Empowerment Principles (WEPs) as well as to the UNGPs may remain a paper exercise if differentiated impacts are not identified, monitored, and acted upon, using operational tools such as the Gender Impact and Data tool (GDI), which BSR developed for supply chain due diligence. It is time for due diligence to stop being gender-blind and make women visible and counted.

In an increasingly fragile world characterized by rising violence, closing civic space, and more authoritarian governance, business has a critical role to play in preventing corrupt practices and human rights violations. 

Addressing corruption and conflict must become a priority of business and states if we are to realize a future of peace and stability.

In line with this year’s theme, the Forum had numerous sessions on the linkages between corruption, conflict, and human rights and the role both states and companies must play to eradicate unethical practices and resolve regional and global conflicts.

Whispered already as the theme of next year’s Forum, corruption took center stage with discussions ranging from the integration of compliance and human rights due diligence processes to holistic approaches to context analysis such as the one at the session facilitated by the UN Global Compact networks. Corruption is often seen as a ‘victimless crime,’ and the panels urged participants to recognize corruption as a strong contributor to human rights abuses. In an increasingly fragile world characterized by rising violence, closing civic space, and more authoritarian governance, business has a critical role to play in preventing corrupt practices and human rights violations. The UN Working Group on Business and Human Rights is currently working on the connection between anti-corruption efforts and implementation of the UNGPs to inform its 2020 report to the UN Human Rights Council. In conflict-affected and high-risk areas, part of business’s responsibility to respect human rights involves actively combating corruption by integrating their anti-corruption and human rights efforts. Companies cannot successfully respect human rights without also addressing issues of corruption in the environment where they operate and that impact their supply chain.

The digital sphere is now indivisible from human rights impacts.

In a world where nearly every company can be considered a technology company, another important theme at the Forum was how human rights are affected by digital activities and what due diligence will mean in this sphere regardless of industry. Discussions spanned from the use of AI and biometrics in high-risk sectors such as defense and surveillance, to what accountability, attribution, and remedy look like in case of adverse impacts from digital activities, to how even digital marketing has far-reaching impacts on organized crime and online and offline hate crimes, and also explored how due diligence is key to ensuring ethical advertising by any brand. Every company should seek to understand the nature of its digital activities—data collection and processing, content management, advertising—and prioritize due diligence to understand human rights impacts from both intended and unintended misuse of their technology or digital activity. States, particularly those in Europe thanks to GDPR, are more and more involved in corporate dialogue and regulations in this sphere, including interesting initiatives such as the Tech Ambassador, which was instituted by Denmark to promote diplomatic activities with technology companies.

Climate is the biggest business and human rights issue of our time, and aggressive emission reductions by both states and businesses should be a core human rights demand.

Climate is our biggest challenge and will have profound human rights implications.

Another theme throughout the three days, the Forum stressed how the climate crisis is now inextricably linked to the current and upcoming human rights impacts—on human life, inequality, health, access to livelihoods, migration. The Forum concluded with a powerful final session on the theme where a unanimous panel agreed that climate is the biggest business and human rights issue of our time and aggressive emission reductions by both states and businesses should be a core human rights demand. There are indeed positive developments and companies that are truly transitioning to fossil-free business models, such as the panelist Scania, but the pace is still too slow to keep emissions under control, particularly in light of the newly published UNEP Emission Gap Report 2019 which predicts increase in temperatures by 3 degrees Celsius. Again, policy coherence was called upon to urge states and businesses to be true to their commitment to the Paris Agreement and act immediately to address climate change in how they operate and our growth models.

We believe these key themes will take even more prominence as we enter the decisive decade next year, and we look forward to working with our members and partners to accelerate change and contribute to a just and sustainable future. To learn more about our work on human rights, please don’t hesitate to reach out and connect with our team.

Blog | Monday May 1, 2017

The Future Looks Clean: New Sustainable Fuel Buyers' Principles

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When it comes to predicting the future, even the best forecasters rarely provide the crisp detail most of us need to make confident decisions in the present. Nowhere is this more true than in sustainable fuels used in road freight.

We know we’re headed toward a low-emission future where different fuels—compressed natural gas, liquefied natural gas, biofuels, renewable diesel, and electricity—will be needed to serve different purposes, depending on unique fleet requirements. We also have a picture of the potential technological options.

Despite this directional clarity, buyers and suppliers still lack the certainty they need to make investments at scale. Buyers can’t make decisions because the technology isn’t far enough along, and it’s hard to weigh different fuel options based on sustainability because the social and environmental impacts are not always clear. Moreover, suppliers can’t make decisions because they don’t have a clear sense of the scale and shape of buyer demand.

When it comes to low-emission fuels—especially low-carbon fuels—it’s time for a new crystal ball. Enter the Sustainable Fuel Buyers’ Principles, which launch today at the Advanced Clean Transportation (ACT) Expo in Long Beach, California.

The inaugural signatories—including HP Inc.; IKEA Group; PepsiCo, Inc.; United Parcel Service, Inc. (UPS); and Wal-Mart Stores, Inc.—are committed to accelerating the transition to sustainable, low-carbon fuel and related technologies. These companies represent many of the country’s largest fleets and freight buyers.

Created by the members of BSR’s Future of Fuels and vetted through our network of 600 expert and industry stakeholders, these principles are intended to achieve three main goals: build the market for low-carbon fuels, ensure progress toward a sustainable set of fuel options, and create opportunities for partnership and collaboration.

The principles will do this by:

• Signaling the magnitude of business demand for more sustainable, low-carbon fuels for freight: Signatories join a growing group of companies that want more sustainable fuels, and BSR is planning to measure their demand annually starting this year.
• Clearly articulating criteria to increase buyers’ use of low-carbon fuels: For suppliers, these principles will clearly define what “sustainability” means to buyers. And the buyers—fleet owners and shippers—can use the Principles as a basis to develop custom criteria that fit their needs.
• Encouraging value chain engagement to boost collaboration and pilots of new fuel investments: The Principles promote pilots and partnerships focused on testing and scaling up low-carbon fuels.

While we can’t predict the precise mix of fuels and technologies, we know for sure that the future of fuels will include many different low-carbon options. And BSR’s Future of Fuels group is working to sharpen the focus by engaging partners across the value chain, sending stronger demand signals, and creating clear criteria needed for success.

We invite fuel purchasers and shippers to sign on to these principles. There is no cost to join, but we ask for companies to offer a sincere commitment to use these principles to proactively engage with their value chains around sustainable, low-carbon fuels. View the full list of signatories and the Principles themselves here.

Case Studies | Tuesday June 1, 2010

Walmart: Improving Supplier Energy Efficiency

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The Challenge

In 2008, Walmart committed to improving the energy efficiency of its top 200 suppliers’ factories in China by 20 percent by 2012. With the aim not only to benefit the environment but also to help suppliers become more competitive, Walmart sought to replicate the success it has had in Europe and the United States in increasing supply chain efficiency. In China, however, the company found that its suppliers often prioritize overall growth over increased energy efficiency. As a result, operations managers commonly lack the necessary incentives and know-how to achieve efficiency improvements. An additional challenge in China is the lack of a developed professional energy-efficiency industry to provide equipment and data-measurement tools that make this process easier in other regions. To help overcome these barriers, Walmart enlisted BSR’s help.

Our Strategy

We focused our work on identifying and addressing suppliers’ needs that prevented them from taking advantage of energy-efficiency opportunities. The most common needs we found were buy-in and support from senior managers and performance incentives for staff. Therefore, we centered our initial efforts on launch meetings to educate executives about the business opportunities associated with energy efficiency. Each meeting involved more than 300 executives and representatives from technical service providers.

Next, the BSR expert embedded in Walmart’s global procurement headquarters in Shenzhen, China, created a data-collection tool that enabled factories to measure their energy use and a framework that allowed Walmart to verify the factories’ performance reporting. Our surveys of suppliers showed that many managers lacked the skills and knowledge needed to manage energy more effectively. To address this critical need, BSR’s China Training Institute in Guangzhou led practical workshops focused on energy management for suppliers. We also worked with partners such as the Environmental Defense Fund to educate suppliers about the “low-hanging-fruit” opportunities in their facilities.

Finally, to enable better access by suppliers to energy- efficiency technology, we improved communication between suppliers and technical service providers through joint workshops and a common auditing tool that allowed for easier comparison between providers.

Our Impact

By the end of 2009, more than 100 factories had improved energy efficiency by more than 5 percent, beating Walmart’s expectations. The company also reported that dialogue between suppliers and technical service providers improved.

This created new lines of accountability within supplier factories, leading them to pursue efficiency programs for energy and other resources in the future. And it put participants on track to profit from saving energy—the largest budget item for many companies—while playing a key role in addressing climate change.

Following the initial success of this commitment, in early 2010, Walmart unveiled a new, sweeping goal of reducing 20 million tons of greenhouse gas emissions in its supply chain over the next five years. Ultimately, these efforts set the stage for Walmart to expand its program to Africa, the Middle East, and South Asia, while providing an example of how other companies can leverage the power of their networks by building win-win efficiency programs with their suppliers.