2Sustain

Here’s some welcome news: A new coalition promises to develop an independent, non-commercial framework for rating sustainability performance. If successful, this new Global Initiative for Sustainability Ratings (GISR) could

• eliminate market confusion,

• reduce conflicts of interest between rating agencies and the companies they survey and

• increase market and consumer confidence in how companies are rated in their environmental and social performance.

Launched last month, GISR is a joint initiative between Ceres, a national coalition of investors and public interest organizations, and Tellus Institute, one of the world’s leading sustainability research and policy organizations.

A more uniform framework is important because sustainability ratings have the ability to push capital and consumer markets towards companies that have embedded sustainability within their operations and supply chains. But, the proliferation of sustainability ratings over the past decade means that in some cases, companies can manipulate the results from various ratings systems and promote only the scores that put their company in a favorable light. Of course, those same companies also can “cherry pick” among results, avoiding the mention of other surveys that are less flattering.

Confusing matters further, some ratings offer little or no transparency about the methodologies used to determine their ratings, which blurs the line between the raters and the companies they rate.

Will this new, additional sustainability standard muddy the waters even more? (more…)

Companies today are facing a changing risk landscape as political and regulatory environments begin to address the many challenges associated with resource scarcity and global climate change.

In fact, in a new survey from Zurich Financial Services Group, Ceres and the Professional Risk Managers International Association (PRMIA), thirty percent of the corporate risk managers polled said climate change regulation was one of the top five risks facing their company.

But, what are organizations doing to mitigate their exposure?

“It’s clear that risk managers are conscious of risks posed to ‘business as usual’ by climate change,” says Lindene Patton, chief climate product officer for Zurich Financial Services Group.  “Now it is time to convert that knowledge to risk management action.”

The report recommends risk managers take the following steps to learn more about what these evolving risks mean for their business: (more…)

Proving itself (once again) to be a sustainability leader in its sector, U.S.-based global consumer electronics retailer Best Buy has joined Business for Innovative Climate and Energy Policy (BICEP), a coalition of major consumer companies advocating for strong U.S. climate and energy policy.

Best Buy joins other retail giants such as Nike, Starbucks and Levi Strauss & Co., who are already BICEP members. BICEP is coordinated by Ceres, a leading coalition of investors, environmental and public interest organizations working with companies to address sustainability challenges such as climate change.

“At Best Buy we’re committed to building sustainable business practices and helping our customers realize ways to live more sustainable lives,” says Laura Bishop, Best Buy’s Senior Director of Government Relations. “ We are honored to join BICEP in their efforts to advance legislation addressing climate change and promoting a clean energy economy.” (more…)

Water scarcity risks are growing in many parts of the world, and yet a new study, by the Ceres investor coalition, the financial services firm UBS and financial data provider Bloomberg, found that most companies in water-intensive industries have weak management and disclosure of water-related risks and opportunities.

The study, “Murky Waters? Corporate Reporting on Water Risk,” used a scoring scale of 0 to 100 to rank 100 publicly-traded companies in eight key sectors exposed to water-related risks.

Eighty of the 100 companies scored fewer than 30 points. The three highest scoring companies — UK beverage company Diageo (43 points), Swiss mining company Xstrata (42 points) and U.S. electric power company Pinnacle West (owner of Arizona Public Services) (38 points) –couldn’t even reach the 50-point threshold.

And, none of the 100 companies are providing comprehensive water data on their supply chains –an especially glaring omission given that the vast majority of many corporations’ water footprint is in the supply chain. (more…)

Last month, I wrote a post about an innovative way to measure your water footprint. This week, water is making headlines again, as a new report from Ceres and the Pacific Institute urges companies to start scrutinizing their water practices and managing the risks associated with decreasing water availability.

“The business community needs to wake up to the reality that water is becoming scarcer and will likely become even more so in many parts of the world due to climate change,” says Mindy S. Lubber, president of Ceres. “It is critical that companies and investors boost their attention on this issue.”

(more…)