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Reports | Thursday April 2, 2020

Climate Action in the Value Chain: Reducing Scope 3 Emissions and Achieving Science-Based Targets

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Business has a vital role to play in the effort to limit global warming to 1.5°C in line with the Paris Agreement targets—and ambition is rising. To date, over 800 companies have committed to setting science-based targets (SBTs) to reduce their greenhouse gas (GHG) emissions in line with climate science.

Achieving such goals requires companies to identify their most significant emissions reduction leverages, including those found throughout their value chains. Most companies pursuing science-based targets have a good understanding of their Scope 1 emissions, generated by their own operations, as well as their Scope 2 emissions, generated from the energy sources that power their operations. Yet according to CDP, a company’s supply chain emissions are on average 5.5 times larger than its Scope 1 and 2 emissions. While some companies have begun piloting projects to reduce Scope 3 emissions, action in this area remains fragmented and limited. 

A new approach for tackling Scope 3 emissions is needed. In this paper, BSR presents our three-step approach that can serve as a roadmap for business, providing a way into the topic for companies at the beginning of their journey and guidance for companies already taking action to scale their efforts. We recommend business to take the following approach:

• Map the value chain to locate the greatest GHG reduction potential. To do so, companies can adopt a “reverse sourcing” approach—rather than moving down the value chain by first engaging Tier 1 Suppliers, companies need to assess their entire value chain to identify where the most potential for emissions reductions lies.
• Demonstrate emission reductions through pilot projects. Pilot projects allow companies to determine the best structure for a project and to demonstrate the opportunity to achieve GHG reductions at scale in the value chain. Pilots will provide learnings that set the company up for large scale deployment and greater industry collaboration.
• Scale up and engage value chain partners and peers. To effectively achieve their Scope 3 targets, businesses will need to widen the scope of collaboration with value chain players and peers and ensure that the right internal processes, such as procurement and marketing, are in place to shift the value chain.

Blog | Wednesday April 1, 2020

The Urgency of a New Social Contract

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The COVID-19 crisis makes one thing abundantly clear: the social contract between government, business, employees, and people is not working as it should.   

In the United States, the crisis we are experiencing has laid bare the failure of the current social contract in many ways: the lack of access to healthcare owing to the tying of health insurance to paid employment; the extreme vulnerability of gig-economy workers to a sudden downturn of business; and for many workers, the absence of paid sick leave, inadequate childcare, and insufficient unemployment insurance.  

The social contract was not fit for purpose before the COVID-19 pandemic struck, but these and many other shortcomings have now been revealed in the most human, tragic, and devastating ways.   

During this public health and economic emergency, the attention of business and government is understandably on near-term priorities, like maintaining employment, providing sick leave for those who need it, helping with short-term financial needs, and supporting the immediate needs of our healthcare system. 

But let’s not kid ourselves. These are not sustainable solutions. 

In due course, we will need to turn our attention to modernizing our social contract for the 21st century—a social contract that allows the overall economy to thrive by enabling everyone to participate in, and benefit from, economic activity. 

The social contract was not fit for purpose before the COVID-19 pandemic struck, but these and many other shortcomings have now been revealed in the most human, tragic, and devastating ways.   

But what does “modernizing the social contract” mean in practice?  

• It means recognizing the fundamental changes in work, technology, demographics and family structures that have occurred since our current models were developed. 
• It means a radical overhaul of the social safety net, including pensions, unemployment insurance and sick leave.  
• It means investment in families, including parental and elder care leave, childcare, and annual leave. 
• It means improved conditions for workers, including predictable schedules, portable benefits, living wages, and flexible working arrangements that benefit businesses and workers alike. 
• It means creating fair tax policies, addressing inequity, enhancing the status of women in the workplace, and providing opportunities for historically marginalized communities. 

And it means investing in our workforce by providing access to education and skills development and enabling people to thrive as automation and the transition to a low-carbon economy take hold. 

Crucially, it also means taking these steps in ways that enable business innovation to flourish.  

The response of many companies to the crisis has been excellent in the near term. Numerous businesses are rising to the occasion by preserving employment, supporting their workers and communities, and calling for government to reinforce the social safety net when it most badly needed.   

But more is needed. At BSR, we want to make sure we build for the future beyond this extraordinary moment, to create and realize a new vision for the shared interests of government, business, employees, and people. We want to make sure that we “build back better” by activating today’s intense focus on the failings of our current social contract and turning it into a movement for long-term change.   

Critically important to achieving this ambition is the fact that the many private and public sector innovations across different social and economic issues and institutions will provide experiments grounded in reality, not theory, and can be built upon to envision, design, and implement new social and economic structures, policies, and programs.   

The social contract is not going to be (and should not be) modernized by business alone. It requires a common effort that brings together companies, government at all levels, worker representatives, and civil society organizations.  

Last year, BSR launched an effort calling for a modernized social contract for the 21st century, and prior to the COVID-19 pandemic, we had plans to engage our member companies during 2020 to advance this effort. However, now is the time to accelerate and increase our ambition.  

For this reason, we’re inviting all our member companies and partners interested in seizing this moment to modernize the social contract to get in touch and co-create a plan of action.  

There are several additional steps that businesses can and should take to remake the social contract once the current crisis passes.   

• Call for wage levels that enable working families to support themselves and that also create a level playing field so that all businesses can compete fairly.  
• Promote portable benefits systems that allow labor market flexibility alongside stability and security for workers. 
• Reinforce pension systems that recognize and are prepared for longer life spans, the decline of defined benefit pensions, and more frequent job changes. 
• Family leave policies that recognize a more diverse set of family structures and the need for both childcare and elder care. 
• Skill development that delivers a thriving economy and access to livelihoods for people who will work longer and need to develop new capabilities as the economy changes. 
• Ensure that the new social contract reflects new factors: the transition to a net zero carbon economy, the need to manage data safely, and the diversity imperative. 

These steps would undoubtedly benefit from a common vision of modern social contracts and a united business voice conveying that vision. We hope that the six principles for 21st-century social contracts that we highlighted earlier can act as a starting point. 

Moreover, the social contract is not going to be (and should not be) modernized by business alone. It requires a common effort that brings together companies, government at all levels, worker representatives, and civil society organizations.  

Times of crisis are very often seen in retrospect as the flowering of innovations that lead to human flourishing in ways we could not have imagined. We are living through an epic historical moment. Let us hope that when history looks back on 2020, the story is one of resilience in the moment and creativity for a better future.  

Blog | Tuesday March 31, 2020

Meet the Moment. Build the Future.

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As the health and economic impacts of the coronavirus pandemic continue to spread, we at BSR are working hard to continue supporting our member companies around the world, along with our many other partners, as you navigate this extraordinary and unprecedented time and contribute to our collective well-being.

From speaking with many of you, we know how challenging it is to manage effectively during this difficult and uncertain period, which poses significant impacts on your businesses, employees, and supply chains. Many of us are also coping with the stress of health impacts on ourselves, our families, and our communities.

This remarkable moment calls on all of us to bring our very best. We are quite literally writing history through countless acts and decisions we make every day.

Our approach at BSR can be summed up in six words: Meet the Moment. Build the Future.

Here’s what we mean by this.

Meet the Moment

It is essential for all of us to adapt sustainability activities to address the profound short-term needs faced by companies, employees, and communities in these challenging times. From speaking with many of you over the past few weeks, we know that you are facing new, unprecedented questions. How do I ensure that we continue with our commitments when our business is in such difficulty, with budgets under intense pressure? What is the right thing to do to support our employees, and those who are employed in our supply chains? How is the economic crisis impacting traditionally marginalized groups, and how can we respond to that? Can we reorient manufacturing to deliver on health care needs? Should we publish our sustainability report at a time when doing so might appear tone deaf?

We have been proud to see so many of you take action to protect employment, help generate badly needed medical equipment, provide capital, and support essential public policy steps to address the health and economic impacts of this pandemic. We are here to help you think through how to respond, to build partnerships, and to amplify your efforts.

Build the Future

As challenging as the day-to-day is right now, this is also a time to think ahead to building a fundamentally different future. For business, this means more emphasis on resilient business strategies, something which we have been discussing with many of you, and is now much more than an abstract concept. Sustainability questions can and should be a core element of such strategies. We also see the rising importance of ensuring societal resilience. This is why business has a strong interest in remaking the social contract to meet 21st-century needs, ensuring economic vitality, stability, and security. We know also that the next challenge to resilience could come from environmental challenges that risk creating serious social disruption and economic loss. The future may not seem relevant right now, but if this episode teaches us anything, it is that change can come more quickly and powerfully than we might think.

BSR’s Efforts

We are here to help you both meet the moment and begin to think about how to build a different future. We know that the pandemic is having a profound impact on your business. We also know that sustainability can be one of the core elements of navigating this crisis while also bolstering your position once the crisis passes. To help you achieve these goals, we are re-orienting some of our activities to help you meet these extraordinary circumstances, while also staying focused on longer-term objectives that remain extremely important, and indeed, could be seen as even more important.

• Communications: We will be producing a series of blogs and webinars to help you understand and discuss the impacts of the pandemic on sustainable business, both overall, and on specific issues like human rights, women’s empowerment, and the impact on ESG investing. In addition, our industry teams are bringing member companies together to share challenges and best practices within their sectors.
• Collaboration: We have shifted many of our collaborative initiatives to virtual formats, and the initial signs are that these are delivering on group objectives well, in some cases with even more participation as virtual models take hold. We are also speaking with many of you on how we can generate new collaborations that meet the moment, whether staying focused on climate action despite turbulent times or designing more resilient supply chains that will be needed once the crisis subsides, and we welcome your inputs on other matters we can help you navigate with peers. We also remain mobilized to support you one-on-one via advisory work.
• 21st-Century Social Contracts: We are accelerating our work on 21st-century social contracts. We welcome your engagement on this crucial issue, and will have content coming in the next two weeks on how business can not only meet short-term needs, but also contribute to more resilient social contracts that enable economic vitality, as well as economic mobility and security in a fast-changing world.
• Emerging Issues/Scenarios: To help you stay focused on the future, we are launching the first in a series of emerging issues briefs in June. This will be delivered by our Sustainable Futures Lab and will be based in part on a virtual salon in late April.

This crisis will pass. Our world, our businesses, and our economies will not look the same in the post-pandemic environment. But our values and objectives will not only endure, they will provide the very basis for seeing us through the crisis. They will also serve as the foundation for structural changes that produce more resilience, more economic fairness, and an ongoing commitment to preserve natural resources.

And these values will guide us as we meet this moment and build the future—together.

Blog | Monday March 30, 2020

COVID-19: A Rapid Human Rights Due Diligence Tool for Companies

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The critical role of business during the time of COVID-19 is clear for everyone to see. Whether it is providing access to accurate information, continuing to pay hourly waged staff, or ensuring continuity of emergency supplies, companies are central to our collective response.

It also seems clear that this role won’t just continue, but it will intensify and become more difficult over time. Companies are going to run low on income, operate with reduced human capacity, and face increasing pressure from governments to assist with emergency COVID-19 efforts.

The severity of the COVID-19 pandemic has reached such a level of imminent threat to public health that restrictions on certain human rights, such as limiting freedom of movement, appear to be justified. A lot has been written about human rights and the role of governments during this time of emergency, such as this analysis from Human Rights Watch on the application of human rights law and this appeal from leading UN human rights experts for states not to abuse emergency measures to suppress human rights.

But this begs a critically important question: what are the key human rights principles for companies to uphold during this public emergency?

While noting that public health may be invoked as grounds for limiting certain human rights, such measures should only be specifically aimed at preventing disease or providing care.

The UN Guiding Principles on Business and Human Rights (UNGPs) expect companies to identify and assess actual or potential adverse human rights impacts and to take appropriate action to address them. Under normal circumstances, companies have weeks, months, or even years to complete this due diligence; not so in the age of COVID-19, when decisions are being made by the hour.

Using the UNGPs and the various human rights principles, standards, and methodologies upon which the UNGPs were built, BSR had previously developed a rapid human rights due diligence tool to help with this rapid decision-making challenge. We’re making this tool publicly available today.

The range of human rights issues at stake today is huge:

• Under what circumstances might a company share personal data with others—such as governments, public health agencies, researchers, or civil society organizations—to support public health efforts?
• In what circumstances—such as the provision of essential products and services—should employees be required to continue working for the public good even though it may adversely impact their own health and safety?
• How should companies act if governments abuse their emergency powers by limiting human rights by more or for longer than is necessary?

The BSR tool guides companies through human rights due diligence in situations when very little time is available. The tool also makes specific reference to the Siracusa Principles, adopted by the UN Economic and Social Council in 1984, which describe limitations on the restriction on human rights that governments may apply for reasons of public health or national emergency.

While noting that public health may be invoked as grounds for limiting certain human rights, such measures should only be specifically aimed at preventing disease or providing care. The Siracusa Principles set out very important guardrails, such as being undertaken in accordance with law, being directed towards a legitimate aim, being proportionate to that aim, being strictly necessary, using no more restrictive means than are required for the achievement of the purpose of the limitation, and being of limited duration.

BSR member companies are welcome to get in touch with Jenny Vaughan for further guidance on this dynamic situation and assistance using this tool and tailoring it to your unique needs.

Download the Tool

Blog | Tuesday March 24, 2020

So, Your Sourcing and Manufacturing Footprint Is Changing: Six Sustainability Considerations

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2019 continued the existing movement of supply chains out of China. This movement was driven in part by rising wage rates in China, a Chinese focus on reducing pollution, and the government policy to export low value-added manufacturing processes, and it was further exacerbated by trade tensions. As the exodus of manufacturing continued and accelerated, both manufacturing groups and global buyers sought opportunities to re-globalize their value chains. This Globalization 2.0 trend will continue over the coming decade. 

Now, 2020 brings us COVID-19. The impacts of consolidated risks in global supply chains are thrown into even sharper relief. Consequently, risk mitigation and the need to build resilience into global supply chains are going to accelerate the re-globalization of these supply chains.  

This means markets which already are sourcing platforms (e.g., Vietnam) are going to be seeing considerable growth, while more nascent markets, from Myanmar to Uzbekistan, will be increasingly on the map. It also means suppliers and buyers will be encountering new challenges in new markets as they set up shop.

Here are six sustainability considerations to help your company create Globalization 2.0 plans which can help achieve long-term success.   

1. Understand your own intent. It may seem obvious, but it’s still worth stating: your starting point should be understanding the business intent behind a supply-base diversification strategy. Pricing, delivery, quality, mechanization, de-carbonization, proximity and access to markets, resilience in key component manufacturing, risk diversification, and alignment with strategic partners may be all part of the business purpose and should provide context for the subsequent due diligence.

2. Look broadly at the sustainability and human rights risks of a country. The tools you used to qualify a factory in the early 2000s are not enough anymore. A factory audit isn’t sufficient and you should be aware of the broader environmental, social, and governance risks of the country in which you/your supply chain will be operating. Understand and map the relevant country risks—from pollution, natural disasters, and labor and employment standards to graft and corruption. These are just a few risk areas—these will vary by country and certainly should be integrated into risk frameworks and due diligence processes. Understanding (and engaging) key stakeholders with relevant knowledge can help you understand these risk areas. Surprises are not excusable.

3. Understand your (potential) partner(s). Ask the right questions in order to understand exactly who you are doing business with and to determine your risk exposure. Who are the beneficial owners of the partner?  What is the land/industrial zone permitting and history? What are the current relationships and reputation of that partner, based on past history (if any) in the sourcing country? Does this supply chain partner share your values and will they be a trusted partner in navigating the (inevitably) changing environment and the next crisis?

4. Do your supplier due diligence. Ensure a high-quality assessment of actual working conditions, management attitudes, and factory systems. Auditable information (fact gathering) on all the traditional compliance issues is important and a solid assessment of environmental (e.g., waste, energy, etc.), social (e.g., employee welfare, health and safety, human rights) and governance issues (e.g., grievance systems, anti-corruption, community engagement and transparency) is important. So too is the social dialogue inside the factory (industrial dialogue, communication systems, harassment issues) and the investment of the supplier in human capital (from hiring to training). Robustness of management systems and the qualifications of the actual leaders underlie the resilience of your partner(s).

5. Plan (and budget) for developing supplier resilience. How well is the supplier positioned to work through the key risk factors inherent in the country? Is the supplier making the investments which will enable resilience through critical times? Investments in grievance and dispute resolution systems, worker engagement, supervisor skills, and internal dialogue help mitigate risks during times of labor strife. Internal controls and strong external community relations enable resilience during times of changing external governance. Preparation and planning integrated into disaster risk reduction plans are important for preparing for weather, health, or other possible risk scenarios.

6. Plan (and budget) for buyer impact. What scenarios are you planning for: disasters, carbon prices, labor shortages, industrial action, rapid market expansion? How well-prepared will you, as the buyer, be in terms of expectations for local transparency and community needs? What opportunities are there for collaborative industry approaches or public-private partnerships? How might these create value for you or your supply chain? Plan for your own opportunities and needs in terms of people, resources, transparency, and stakeholder engagement. 

In short, think beyond compliance, understand the “total cost of ownership” of your supply chain plans, and know that your partners are aligned with your vision, values, and goals. Build resilience and plan for the next disruption. As Globalization 2.0 continues and supply chains diversify in new locations, let’s learn from the experience of the past three decades. Companies should continue to try to holistically understand and mitigate risk while finding collaborative opportunities for impact. At BSR, we know these actions work and can help build more equitable and resilient supply chains. 

Blog | Wednesday March 18, 2020

An Update from BSR on COVID-19

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Dear BSR Members and Valued Partners,

The COVID-19 coronavirus pandemic is presenting the world with a fast-changing and unprecedented global health situation. 

We hope that you and your families and communities are staying safe and healthy, and applying the values that underlie our collective work on sustainability to see us through this challenging time.

In addition, as a global business network dedicated to advancing sustainable business, we remain focused on our work while also adapting to address the ever-shifting environment in our offices around the world.

We remain very much open for business, with our teams working remotely (though in Hong Kong, some have been able to return to the office safely), at as close to regular capacity as the situation permits, and in accordance with the guidelines provided by relevant national, regional, and local health authorities. You can find us online, with all meetings conducted remotely via video teleconferencing platforms. 

Our work with you, our member companies and many partners, matters now more than ever. At moments like this, we welcome and encourage more dialogue with you, and more collaboration amongst our network.  

This week we will be rolling out new platforms and opportunities for engagement with BSR issue and industry experts, and for networking with other BSR member companies, partners, and thought leaders.  

We’ll also be offering a series of perspectives from our industry and issue experts, with the latest thinking on how business can continue to advance the sustainability agenda while navigating the challenge of the coronavirus. Our new COVID-19 content hub already features insights from BSR staff, including business lessons from the first phase of the pandemic, how to protect human rights while protecting public health, and the pandemic’s impact on workers and supply chains in China. We will be adding content in the days and weeks to come.

Finally, we will be encouraging additional engagement from you, our members, as we navigate this crisis together. This includes:

1. Information sharing and problem solving: We want to hear from you if you have perspectives to share on how this pandemic is affecting your business and your sustainability efforts; or support in solving particular challenges you face throughout your business, whether arising from the impacts of the pandemic or the long-term objectives that remain crucially important. In addition, as part of your BSR membership, you have access to high-level insights on how the coronavirus is impacting your digital (online and social media) profile through BSR’s reputation intelligence partner, Polecat. Please reach out to your relationship manager to learn more.
2. Project support: We will continue to support and work with members on one-on-one projects, using all of the remote tools at our disposal.
3. Networking: We will be looking at additional ways to enable you to share your experiences with other BSR member company contacts through online webinars or examples of responses to the pandemic via contributions to the new content hub. Reach out to your BSR relationship manager if you have ideas for a webinar, or an idea for a blog that you think may be of interest to the broader BSR network.
4. Collaboration: Our collaborative initiatives continue to operate with an immediate shift to virtual gatherings. If the systemic failures made apparent during this pandemic have inspired you to think more long term about how you can collaborate to build a more resilient business and a more resilient system, our collaborations offer a powerful platform. BSR’s CoLab, our incubator and accelerator of private-sector collaboration, works with companies and other partners on a range of sustainability issues, including global health. And BSR’s Healthy Business Coalition is a great resource for collaboration with private-sector peers on public health issues that affect companies and workers. Please reach out to your BSR contact if you’re interested in more information about this.
5. BSR Conference 2020: The Decisive Decade: The BSR Conference 2020 is still set for October 27-29 in New York, and the program will be launched formally later this spring. We will of course be monitoring the situation and re-evaluating the feasibility of hosting an in-person event as the pandemic situation evolves. We will provide updates as we learn more.

We are all facing a monumental challenge, which will undoubtedly have both short- and long-term impacts on the economy, and on the health and well-being of businesses, workers, and communities around the world. Our movement for resilient, sustainable business has never been more relevant, or important.

Our collective ability to achieve a world in which everyone can live a prosperous and dignified life within the planet’s natural boundaries remains fundamentally important. It is up to all of us to redouble our commitments, with urgency and kindness, to unlock the capabilities, ingenuity, knowledge, and resources of the private sector to achieve that vision.

Please stay tuned for further updates and visit this website and our social media channels for the latest information.

All of us at BSR wish you, your colleagues, and your families good health and safety during this challenging moment.

With thanks,

Aron Cramer
President and CEO, BSR

Blog | Monday March 16, 2020

Business Lessons from Phase One of the COVID-19 Pandemic

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How quickly life can change.

We are only in phase one of a pandemic that has changed the rhythm of daily life like no other recent event. As we take time to think first of the health of our families, friends, and communities, we are already learning lessons that will help us to navigate the urgent trials we face today as well as the fundamentally important challenges awaiting us once the worst of the pandemic passes.

Here are five lessons to guide us through these turbulent times and the uncertainties which lie ahead.

1. The virus makes clearer than ever that the social contract in many places is not fit for purpose and needs to be reformed.

The social contract, meaning the roles and responsibilities of government and business and the needs of citizens and employees, is being tested in an extreme way right now, but it was already clear that it was not fit for purpose before the pandemic struck. In the wake of the pandemic, the lack of access to health care in the United States has come into even sharper relief, this time in a potentially devastating way. We have also seen examples of the social contract being adapted, as with Denmark’s move—through tripartite discussion between government, business, and trade unions—to extend benefits to help Danes get through this difficult time. It is also interesting to see how different societies accept data sharing and transparency, which trade some privacy for increased protection. Businesses should certainly step up to help their staff sustain themselves in the context of much economic activity apparently being stopped. And while we are seeing in real time how well the social safety net functions, there are also long-term questions that business would do well to address more forcefully after this crisis is behind us. BSR has launched an effort calling for a modernized social contract for the 21st century, with more attention to the changing nature of work, access to education and skill development, and the financial stability of our pension systems, amongst other issues. The COVID-19 pandemic reveals this to be deeply relevant for business and society and can serve to catalyze more business action to ensure our social contracts are fit for purpose. The business responses to the crisis have in many cases been excellent: this leadership can also be applied in non-crisis situations.

2. Resilience is not just a catchphrase; it’s a necessity, and it’s having its moment.

Every single Board of Directors should learn from this global challenge and invest more time and thought in exploring where its business faces other risks. There is little doubt, of course, that climate change could deliver a blow to many companies that is as profound as COVID-19, but with far more lasting impacts. We have also seen unexpected political shifts over the past few years, and businesses that have assumed broad support for a globalized economy have seen their plans upended. Resilience in the face of fast-changing attitudes and actions on the part of a company’s workforce also present questions of fundamental importance. And we also know that political change can come overnight and test our models. In many ways, the rise of ESG investing is asking one simple question: is your business resilient in the face of massive change? We are experiencing in real time how hard it can be when the answer is no.

In an era when powerful political leaders call for walls and barriers and play to publics who can be swayed in that direction, this difficult episode teaches us the importance of collaborative solutions.

3. We must not turn our backs on our interdependent globalized world.

It should go without saying that we are all connected and interdependent; the virus proves just how true that is. But in an era when powerful political leaders call for walls and barriers and play to publics who can be swayed in that direction, this difficult episode teaches us the importance of collaborative solutions. Credit should be given to French President Emmanuel Macron for convening a virtual G7 Summit and to the tireless workers at the World Health Organization for providing valid and valuable information, enabling testing, and supporting health systems that need it most. In short, we need each other, and crises often remind us of that. This one certainly should be doing exactly that. It is folly to suffer the negative consequences of our connectedness without maximizing the benefits. Business has a strong interest in advocating for open societies, effective public governance, and the rules-based international system that has come under attack in recent years.

4. Futures thinking may be the most essential tool we have, so let’s use it.

One of the best ways to build a resilient strategy is to employ futures thinking. BSR launched its Sustainable Futures Lab in 2017, and we have worked with many companies and other partners to build scenarios to help them to map and understand possible pathways to create more desirable future outcomes. This is no academic exercise, as we now see. Indeed, one in a set of climate scenarios we began developing late last year began with an animal-borne virus emerging from China to undermine economic and human health globally. The steps called for in the Task Force for Climate-Related Financial Disclosures (TCFD) embrace scenarios as a core of TCFD disclosures. The concept underlying the TCFD should be extended well beyond climate, to ensure that companies can prepare for the diverse array of futures that may well emerge.

The need for progress on climate and other environmental challenges don’t vanish during a recession. The need to invest in communities and people whose economic circumstances are diminished only grows more important.

5. Action on climate and the SDGs cannot be put off.

The world’s attention is quite rightly focused on the urgent need to save lives and avert immediate economic distress. But we are here for the long term also. We need both to address this shock in the first year of the decisive decade and remain 100 percent committed to building the world we are committed to building in 2030. Even as every company, large and small, is understandably focused on the here and now, this is a time when business leaders and companies should speak out to reinforce the need to make significant, tangible progress towards the SDGs. And even if the virus leaves a recession in its wake, it is essential that business remain focused on achieving the SDGs. The need for progress on climate and other environmental challenges don’t vanish during a recession. The need to invest in communities and people whose economic circumstances are diminished only grows more important. And the march of technology needs to be aligned with human rights and ethics regardless of which direction global stock markets head.

We have spoken about the “new climate for business” over the past year as we entered this “decisive decade.” As we work through this rocky start to the new decade, it is essential that we remember the central importance of staying committed to our long-term goals, while adjusting to an altered reality that has much to teach us when we inevitably emerge from this crisis.

Blog | Friday March 13, 2020

Respecting Human Rights While Protecting Public Health

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As the COVID-19 coronavirus outbreak disrupts global supply chains and shutters factories and stores around the world, companies are grappling in real time with the human rights implications of the coronavirus response. This raises a question that we have had little opportunity to ask ourselves before: How can we best protect public health while respecting individual human rights?

Coronavirus is raising a range of human rights dilemmas for business, including:

• Discrimination, notably against ethnically Chinese and Asian persons (including persons of Asian descent and appearance). The outbreak of coronavirus, which originated in Wuhan, Hubei Province, China, has seen a global rise in anti-Chinese and anti-Asian sentiment spurred by fear and anxiety, leading to stigmatization. For example, there have been reports that some businesses worldwide, including restaurants, have barred entry to Chinese and Asian customers. Such discriminatory actions have been further fueled by media sensationalism as some news outlets have been criticized on how they have been reporting the crisis.
• Privacy, as health and other personal data are collected in the workplace and in public, often via integration with facial recognition and other biometric technologies (including temperature testing). This in turn raises concerns about security of data storage, future use and misuse of data, and the risks of empowering authoritarian governments. Companies are now beginning to develop more sophisticated technologies with the ability to identify persons wearing face masks. Critics of such facial recognition technologies are concerned that coronavirus is giving authorities and companies the opportunity to ramp up surveillance.
• Labor rights and worker welfare, with heightened risks for vulnerable workers and those in forced labor. On the one hand, workers risk unhealthy and stressful living and working conditions if employers do not set policies to allow people to work from home, self-quarantine, or take paid sick leave. On the other hand, workers risk lost wages or job loss if employers terminate contracts or withhold pay due to absences for illness, quarantine, or caring for a sick family member. Companies may also increase working hours to compensate for a reduced workforce, risking exploitation of their workers and undermining their health and well-being.
• Freedom of expression, as employees face consequences for speaking publicly about working conditions, and companies address increased risks of disinformation. Employees who are critical of working conditions as well as business approaches to health and safety risk backlash, censorship, and in extreme cases termination of employment. It was recently alleged that an employee in Hong Kong was dismissed after he posted comments on Facebook criticizing his company’s response to coronavirus, specifically for not implementing a work-from-home policy and providing sub-standard face masks.

Coronavirus has put us all on notice that we must be ready with measures to ensure respect for human rights while protecting public health. The question for today is, “What’s the best way to do that?”

Companies can consider the following recommended actions to minimize adverse impacts on human rights stemming from their response to coronavirus or other public health crises in the future:

• Limit employee exposure to coronavirus in the workplace through a suite of actions: personal protective measures (e.g., hand and respiratory hygiene supported by proactive training and distribution of hand sanitizers), environmental measures (e.g., cleaning of frequently used surfaces and common spaces, appropriate ventilations), workplace policies (e.g., screening at the entrance in the facilities, social distancing, and others), and work arrangements (e.g., rotational schedules that reduce person-to-person contact, and work-from-home arrangements for non-essential staff).
• Provide paid leave in case of illness, quarantine, or to care for a sick family member. Employees who are required to work from home due to the outbreak should continue to receive their normal pay and benefits.
• Develop a plan with suppliers to ensure worker welfare while supporting business continuity, such as flexible quotas and delivery schedules.
• Ensure that any measures to increase working hours to compensate for workforce reductions are time-bound.
• Establish non-discrimination policies and proactive measures to protect staff and customers from discrimination.
• Ensure that personal data collection follows applicable regulations (e.g., GDPR), is limited to what is medically necessary (e.g., temperature), is provided under informed consent, and is not stored or used for purposes beyond public health measures to prevent the spread of coronavirus.

Pandemics are increasingly likely in today’s hyperconnected world, and our collective well-being is shaped by the well-being of the most vulnerable among us. Coronavirus has put us all on notice that we must be ready with measures to ensure respect for human rights while protecting public health. The question for today is, “What’s the best way to do that?”

And the question for tomorrow is, “How can we see the next one coming?”

Blog | Thursday March 12, 2020

Women’s Empowerment Principles: Turning a Decade of Lessons into Ambitious Business Action

Preview

This year marks the 10th anniversary of the launch of the Women’s Empowerment Principles (WEPs), a set of values based on international standards to guide business action to create more gender-equal workplaces.

Over the past decade, the business case for gender equality has expanded and deepened. For example, a 2019 study from S&P Global found that companies with female CEOs and CFOs produced superior stock performance, compared to the market average. In the 24 months post appointment, female CEOs helped drive a 20 percent increase in stock returns.

Gender-diverse workforces also help to attract talent, reduce turnover, and can contribute to building trust with clients and consumers. On a macro level, achieving gender equality could add upwards of US$12 trillion to the world’s economy. At the same time, we have seen increasing evidence highlighting the deeply entrenched and systemic barriers that women face in workplaces around the world, from violence and harassment to the unequal share of unpaid care and domestic work.

A new report from BSR and the United Nations Global Compact presents aggregate findings of the WEPs Gender Gap Analysis Tool, an online platform that has been used by more than 2,000 companies around the world since its launch in 2017 to anonymously assess their gender equality performance. Like the WEPs, the tool is holistic and considers the range of ways that companies can support women’s empowerment, from the representation of women in senior leadership, to ensuring equal pay for work of equal value, to respecting and supporting the rights of women workers in global supply chains. Here’s what we found:

1. Business is committed to advancing gender equality  

When the WEPs launched in 2010, there was a lot of discussion about the business case for policies and programs aimed at creating workplaces that women and men can equally contribute to and benefit from. Companies were eager to be equipped with data that would prove return on investment and convince business leaders to make a top-level commitment to gender equality. Today, it is encouraging to see that over two-thirds of companies have a leadership commitment or demonstrate public support for gender equality and women’s empowerment. And the list of business leaders that have signed the CEO Statement of Support for the WEPs has grown from 39 in 2010 to over 2,700 today.

2. Translating business commitment to action remains a key challenge

While corporate support for gender equality is strong, businesses have yet to introduce specific policies, measurable targets, and robust accountability mechanisms to ensure progress. In fact, only 28 percentof companies include time-bound, measurable goals and targets on gender equality in their strategy, and even fewer companies report publicly on progress made and outcomes.

We can see the disconnect between commitment and implementation when we take a closer look at specific corporate practices. For example, while almost two-thirds of companies have a policy or a commitment for zero tolerance of all forms of violence at work, only 28 percent of companies provide annual training to promote this norm. Similarly, 67 percent of companies provide paid maternity and paternity leave, but only 21 percent track uptake of parental or care benefits, and only 9 percent report this data publicly. Only one-quarter of companies undertake a gender pay gap audit or evaluation, and only 15 percent disclose their gender pay gap.

3. Business can strengthen performance and contribution to gender equality by considering impacts across the value chain

Data from the WEPs Gender Gap Analysis Tool highlights key areas that have yet to receive adequate attention. For example, business has significant influence and reach to challenge negative gender stereotypes that are holding back progress. Yet, only 26 percent of companies have introduced a specific marketing policy or commitment to address the portrayal of gender stereotypes. Similarly, while engaging women entrepreneurs through inclusive procurement practices has a significant impact on economic growth, as well as business performance, only 3 percent of companies report on public spending on women-owned businesses.

BSR and the UN Global Compact are working with companies to address some of the most pressing issues related to gender equality and accelerate the pace of change. This includes:

• Signaling your commitment to women’s empowerment: Signing the WEPs CEO Statement of Support demonstrates top-level commitment to advance gender equality and women’s empowerment in the workplace, market, and community.
• Setting ambitious corporate goals for women’s empowerment: The UN Global Compact Target Gender Equality initiative supports companies in setting and reaching ambitious corporate targets for women’s representation and leadership, starting with the Board and Executive Management levels.
• Empowering women throughout your supply chain: BSR’s Gender Data and Impact Framework supports both brands and suppliers seeking to conduct better and more effective gender-responsive due diligence. The Framework includes a set of KPIs to measure outcomes for female and male workers and the Gender Data and Impact (GDI) tool, which suppliers can use to detect gender gaps in outcomes for workers. The GDI also helps companies to design an effective action plan, and track improvements against worker outcomes that are truly transformative.
• Working collectively to advance women’s rights: Business Action for Women is a leading coalition of companies committed to supporting women’s empowerment in the workplace. This initiative will inspire ambition, increase impact, and catalyze scalable corporate solutions to support women's global progress. By joining Business Action for Women, companies can discuss, learn, and explore dimensions of women’s advancement and gender equality with a focus on the full value chain—from policy engagement opportunities to investments in women workers in global supply chains.

With 2020 underway, we have entered a decisive decade to achieve the ambitious 2030 Agenda for Sustainable Development. However, the World Economic Forum currently estimates that it will take 257 years to achieve women’s economic empowerment and close gender gaps in the economy. Business can continue to play a critical role in achieving gender equality and empowerment for all women and girls by implementing the WEPs, supporting new international frameworks and guidance like the ILO Convention on Violence and Harassment in the World of Work and the Gender Dimensions of the UN Guiding Principles on Responsible Business, and participating in the Generation Equality Forum, which aims to build on this momentum to turn commitments into concrete actions.

However, stakeholders’ expectations of business are shifting, including investors and customers. As such, businesses will need to accelerate progress by identifying untapped areas for change, for example, only 31 percent of companies are taking proactive steps to recruit women in traditionally underrepresented roles. Imagine the outcomes for women if this number double or tripled? This decade is a moment for companies to prove they can turn their commitments into action, through targeted, meaningful programs and policies that enable women, and men, to thrive throughout their value chains.  

Reports | Thursday March 12, 2020

Women’s Empowerment and Business: 2020 Trends and Opportunities

Preview

2020 marks the 10th anniversary of the Women’s Empowerment Principles (WEPs), an ambitious set of principles to guide business action for more gender-equal workplaces. Since the launch of the WEPs, the business case for gender equality has continued to grow, and companies are scaling up their commitments to ensure women and men can equally contribute to and benefit from workplace policies and programs. However, as this report from BSR and the UN Global Compact shows, few companies are making the leap from commitment to action for meaningful change for women.

This report presents the aggregate findings from the WEPs Gender Gap Analysis Tool, an online resource for companies to anonymously measure their progress toward promoting a gender-equal workplace. As of January 2020, more than 2,000 companies from around the world have already used the tool to assess their gender equality performance across the workplace, marketplace, and community.

The report provides a snapshot of how companies are doing in terms of commitment, implementation, measurement, and transparency covering a wide range of issues. The results reveal important gaps in all areas, but in particular between the number of corporate commitments versus actions to promote gender equality, with even fewer companies tracking and reporting on progress. In order to support companies to move from commitment to action, the report highlights a range of initiatives to strengthen corporate efforts to create more gender-equal workplaces