Governments are undoubtedly important players in this whole societal shift towards climate mitigation and adaption. Equally important though, and by the argument of some possibly even more important: companies, the corporate world.
The largest number of cases on a global level are brought forward against governments. But about a forth of all cases are filed against corporations. This is not negligible - and, maybe more importantly, a number on a brisk raising trajectory.
The question hence for this blog post is: How is this climate litigation business shaping up to affect corporate players?
After some results at the COP in Vancouver, as well as the release of the first ever Science -Based Targets for Nature (SBTN) – finally (!) the recommendations by the TNFD (Task Force for nature-based financial disclosure) have been released. So the question obviously is, how do these targets address the 5 key drivers of biodiversity erosion eventhough it is only about reporting? Are the TNDF recommendations worth their salt?
Governments as well as legal persons such as companies are undoubtedly important players in this whole societal shift towards climate mitigation and adaption. When it comes to corporates though, and notably stock quoted companies, there is a group of people that is most prominently exposed in regards to the legality and societal ‘license to operate’ of a company: the Board of Directors (BoD). The question hence for this blog post is: How is this climate litigation business shaping up to affect the Board of Directors of publicly listed companies?
In her thought-provoking 2020 article, Laura Liswood exposes "The Illusion of Inclusion," where companies appear diverse but lack genuine inclusion. In this blog post I extend this idea to "The Illusion of Sustainability Impact Effectiveness," where businesses seem committed to sustainability but achieve minimal real impact. By adapting Liswood's Inclusion Stress Test, I drafted a version of the assessmnt that can be a usueful tool for companies to genuinely assess and enhance their corporate responsibility efforts across all dimensions.
Uniqlo's corporate Diversity and Inclusion policy in number.
2nd of an article series that analyses Uniqlo and why it joint forced with Bangladesh's Grameen Bank.
Knowledge and data are two interesting entities: essential for decisions at any one time. And yet evolving with time. And with that, decisions taken some time ago, possibly decades earlier, may prove flawed – in hindsight.
But what if years down the road these insights are resurfaced and either proven to be partially or fully inaccurate? What if the nuggets are suddenly being used in a context that has shifted significantly since? What if our best intended and best-possible informed statements of the past are called out years, decades later?
A few thoughts on this dilemma.
Can we say that modern businesses prefer long-term over short-term? For sure the business environment is more and more rewarding companies that think ahead and do not fail to consider existing or potential risks. What has happened in finance is striking and is based on the concept that long-term benefits outweigh the short-term pain.
Carbon – together with biodiversity – is one of THE most critical dimensions among the Planetary Boundaries. Because the already existing overshoot is putting our civilisation at risk. So far nothing new under the sun. The food and agri sector is - possibly together with the energy sector - one of the most important industries in this regard. Not only does it impact our living environment significantly - by how our food is grown - but also they play a key role to feed our global population. The big elephant in the room is of course: How well or badly do agri food companies perform right now in terms of their carbon footprint? And: Do they have at the least commitments to work on a Paris Agreement trajectory? I look into these questions. Spoiler Alert: There is not much to cheer about. Not at all.
The world of sustainability in fashion has changed fundamentally in the last few years. In this article we look at qualities that leaders such as Patagonia's Yves Chouinard have, that make them the movers and shakers of the sustainability agenda in the industry at large.
One of the things usually approved at the constituent board meeting after every company AGM are the board of directors' ‘Rules of Procedure’. What looks, and is often perceived, as a formality though, at close looks carries not just formal weight, but indeed formulates – directly or between the lines – the duties of the board.
What do these rules typically enshrine - and what not?
Large companies and institutional players are challenged to assess and calculate their carbon footprint. But they typically have the means to hire experts – in-house or consultants – and buy licenses of useful tools.This applies similarly to larger-sized SMEs. But what about distinctly small companies or indeed even individuals? How can they get a guesstimate on their carbon footprint, and possibly even some pointers how to do better going forward? Hence, here a short list of such calculators, both for individuals as well as for small companies.
The fashion industry needs to change. Why? A simple T-shirt needs 2000 litres of water 150 grams of pesticide to grow the cotton. And that's only the start!
This blog uncovers the surprising, and mostly overseen fact, that corporate cash holdings in banks more often than not have a relevant carbon footprint. Relevant enough for a company's own Scope 3 and overall footprint. We discuss actionable steps from the Green Action Cash Guide, and the type of support the guide gives – but also lacks. Topics touched upon are: board support, data gathering, and strategies for shifting to climate-friendly banking partners.
“Marketing used to be about creating a myth and telling it. Now it is about finding a truth and sharing it”. Better brands are those brands that will ensure their long-term existence, that will go beyond their founders and their children. How? By taking better decisions and looking at the bigger picture.
Textile Exchange recently launched their (first ever) Biodiversity Insights Report. In itself not a bad idea per se – after all, assessing the staus quo of things is at least a baseline – the report is indeed ‘insightful’ in a number of ways. Most importantly: it raises a lot of questions. Such as:
If predominantly large companies are such laggards in all things biodiversity - can you imagine the situation in companies with much less resources? And why are entirely inadequate tools used to measure biodiversity? Are the commitments not just a rehash of climate committments, that only very recently start to show teeth and results?
Reporting on ESG / sustainability dimensions is an issue.
One for the executives in a company across all levels of responsibility.
And one for the board.
For the board indeed even on two accounts, namely:
The metric they require to be reported to; and the metric that eventually find their way into publicly disclosed information of some shape or other.
Unsurprisingly: How seriously a company takes the ESG issue can be inferred from the extent, poignancy, and quality of their reporting.
That again – equally unsurprisingly – says is all about how ESG-savvy their board most likely is. Or, indeed, is not.
The leadership team level at company X is not making the moves that might be expected and needed from a sustainability perspective. What to do? How to overcome the blockage? How to make progress without even mentioning the S-word in the discourse?
The answer: Compliance, Risk, and the Fear of Missing Out (FOMO).
Or in more tangible terms - start the conversation by focusing on legal compliance, Risk and Due Diligence, Efficiencies ... and good old benchmarking with the competition.
No S-word needed. Not a big step for humanity no doubt. But a door opener to many more interesting conversations.
The book explains key factors in doing successful business with the poor, profitably as well as with a positive social impact. Numerous case studies show the how-to.
You can't manage what you can't measure. This often cited quote by Peter Drucker lies at the heart of many things: change management, quality management, staff diversity, environmental footprint, CO2 output … you know it. This is why many millions of dollars, and countless hours, have been invested in creating suitable measurement tools. It's just that: Measurement ≠ Data ≠ Information ≠ Knowledge ≠ Action.
We need new business models that are not predicated on selling more stuff to more people.
And because in the 'Here and Now', there is truly not much more to say, I could finish with the above quote.
Except that: Those ‘new business models’ are not reality. Far from it.
About the Role of the Board in the 'Why'.