2Sustain

Launched in 1999, the Dow Jones Sustainability Indexes (DJSI) were the first global indexes tracking the financial performance of the leading sustainability-driven companies worldwide.

Each year, SAM, an investment boutique focused exclusively on sustainability investing, invites the world’s 2,500 largest companies, measured by free-float market capitalization, from the 57 sectors to report on their sustainability performance. The result of the Corporate Sustainability Assessment provides an in-depth analysis of economic, environmental and social criteria, such as corporate governance, water-related risks and stakeholder relations, with a special focus on industry-specific risks and opportunities.

“The DJSI have become the gold standard in recognizing the world’s corporate sustainability leader,” Michael A. Petronella, President, Dow Jones Indexes, said. “These indexes have become an invaluable market tool for those seeking to support companies that are committed to creating and adopting sustainable business practices.”

The results of this year’s assessment were announced last week, and the data shows some very interesting changes to the DJSI World. Overall, 41 companies will be added, and 23 firms will be deleted, resulting in a total of 342 components.

The largest additions (by free-float market capitalization) to the DJSI World include Medtronic Inc., Schneider Electric S.A. and Societe Generale S.A. The largest deletions (by free-float market capitalization) are Coca-Cola Co., Hewlett-Packard Co. and EnCana Corp.

The changes will become effective with the opening of trading on September 19, 2011.

Here are the 2011-2012 DJSI supersector leaders: (more…)

Last Wednesday, the Coca-Cola Company and H.J. Heinz Company announced a strategic partnership that enables Heinz to produce its ketchup bottles using Coca-Cola’s innovative PlantBottle packaging.

I first wrote about the PlantBottle when Coca-Cola launched it back in 2009. It looks, feels and functions just like traditional PET (polyethylene terephthalate) plastic –but, the PlantBottle is made from up to 30 percent sustainably-sourced plant-based material. Plus, it is 100 percent recyclable, like traditional PET plastic. (In other words, PlantBottle packaging can be recycled in the existing commercial recycling infrastructure.)

By adopting the PlantBottle technology, Heinz is making the biggest change to the brand’s iconic ketchup bottles since the company first introduced plastic in 1983. Heinz plans to convert to PlantBottle globally, beginning with the 20-ounce variety of Heinz Ketchup, which will be rolled out to US consumers this summer. All told, Heinz says it will introduce 120 million PlantBottle packages in 2011. (more…)

The Coca-Cola Company published its seventh system-wide sustainability report last week, and it contains a total of 25 sustainability goals distributed across seven core focus areas: Beverage Benefits, Active Healthy Living, Community, Energy Efficiency and Climate Protection, Sustainable Packaging, Water Stewardship and Workplace.

The 51-page sustainability review includes these notable performance highlights:
With regard to Energy Efficiency and Climate Protection, the Coca-Cola Company has

• Improved energy use efficiency 13 percent since 2004 and reduced absolute emissions from manufacturing operations in developed countries by 8 percent since 2004.

• Advanced energy efficiency of cooling equipment with the installation of some 3.1 million intelligent energy management devices to date, reducing energy consumption by monitoring energy use on refrigeration units.

• Installed more than 127,000 HFC-free refrigeration systems, bringing total placement to more than 240,000 units. The company says its goal is to phase out the use of HFCs in all new cold drink equipment as of 2015.

The Coca-Cola Company had also made significant strides with Sustainable Packaging. For instance, the company has (more…)

Water concerns are becoming more and more globally integrated and complex, and many corporations are now seeking out cooperative partnerships to help mitigate the increasing threat of water risks.

Here’s an example: Just last week, The Coca-Cola Company and The Nature Conservancy announced the release of a water footprint report, entitled Product Water Footprint Assessments: Practical Application in Corporate Water Stewardship. Released in conjunction with World Water Week in Stockholm, Sweden, this report details three pilot studies that were conducted on Coca-Cola products and ingredients.

Water footprint assessments like this one provide valuable insights into water use throughout the supply chain, including both direct and indirect water use and the impacts of use on local watersheds and communities. Those insights can then open new opportunities for companies to enhance their water stewardship, while mitigating the risks associated with water scarcity.

For instance, in this particular study, Coca-Cola and the Conservancy found that the largest portion of the product water footprints assessed in the pilot studies comes from the field –not the factory.

“We see significant opportunity to engage more directly with our agricultural suppliers to advance sustainable water use for the cultivation of ingredients in our supply chain,” Denise Knight, Water and Sustainable Agriculture Director, The Coca-Cola Company, said in a press release. “Our initial efforts will focus on the sustainable sourcing of sugarcane, oranges and corn.”

Water footprints typically identify three types of water: (more…)

Forming a partnership that illustrates the current trend towards non-profit/for-profit sustainability alliances, the World Wildlife Fund (WWF) has teamed up with The Coca-Cola Company to improve the water quality of the Yangtze River in China.

In many ways, the Yangtze has taken the brunt of China’s colossal economic growth, and even though the river provides China with 35 percent of its fresh water, it now ranks number one on WWF’s list of the ten most-threatened rivers in the world. For Coca-Cola, which operates 39 bottling plants in China, the partnership with WWF represents an opportunity to strengthen its commitment to water stewardship while mitigating its water risks.

A recent post at Knowledge@Wharton explains how non-profit/for-profit partnerships such as this one can be mutually beneficial: (more…)