2Sustain

Corporate sustainability programs aren’t typically integrated with tax departments, and that could be costing companies valuable financial opportunities, according to new research from Ernst & Young LLP.

The survey, entitled Working Together: Linking sustainability and tax to reduce the cost of implementing sustainability initiatives, included responses from 223 senior executives at companies predominantly in the US. 19 percent of those polled were Chief Sustainability Officer (CSOs), while the remaining 81 percent were tax directors or their equivalent. Responses from each group were vastly different, highlighting the lack of coordination between the two groups. For example, only 28 percent of tax directors believe their company has a sustainability strategy or is developing one, compared to 90 percent of CSOs surveyed. In addition, the survey results showed that: (more…)

The risk of natural resource shortages, coupled with changing customer and employee expectations, is likely to impact core business objectives in the coming years. Exactly how global companies have been addressing impacts like these has been somewhat murky –at least until now.

Results from a 2011 Ernst & Young LLP/GreenBiz Group comparative survey, “Six Growing Trends in Corporate Sustainability,” determined an increasing financial focus by executives on corporate sustainability efforts affecting core business objectives.

For example, the replies of 272 sustainability executives from 24 industry sectors provided several illuminating statistics centered on six major trends: (more…)

The world’s leading chemical company, BASF, has announced new ambitious environmental, health and safety goals.

Since BASF operates in an energy-intensive industry, it makes perfect business sense for the company to mitigate its energy and raw material risks by focusing on energy efficiency and then broader sustainability goals.

For example, by 2020, BASF wants to:

• Increase its energy efficiency –defined as the amount of sales products in relation to the primary energy demand – worldwide by 35 percent, compared to the previous goal of 25 percent.
• Reduce greenhouse gas emissions per ton of sales product by 40 percent compared to 2002.
• Reduce carbon emissions related to the amount and distance of transported natural gas by 10 percent compared with 2010.
• Reduce by half the current amount of drinking water in use for production compared to 2010.
• Establish sustainable water management systems at all production sites in areas of water stress.

These new ambitions mesh well with BASF’s past progress. As of last year, the company had: (more…)

Even though investors and companies increasingly agree on which corporate environmental, social, and governance (ESG) issues affect a company’s financial value, there are still disconnects regarding metrics and disclosure. A new study, Finding Common Ground on the Metrics that Matter, released by the Investor Responsibility Research Center (IRRC) Institute, deep dives into these concerns and provides the first comprehensive analysis of which corporate ESG information is tracked by companies and how it is –or isn’t –consistent with analogous information sought by investors, researchers and other stakeholders.

In broad terms, the study revealed that:

• There is agreement on key corporate sustainability issues, but not on the metrics used to measure the management of them, nor on the purposes served by examining corporate ESG information.
• Though ESG metrics routinely are reported on request by many companies, few report all the ESG information they collect internally.ESG researchers, investors and corporate representatives approach ESG issues from a risk mitigation perspective, not a value creation perspective.

In addition, key data from the study concluded that: (more…)

Last week, President Obama visited the Daimler Trucks North America (DTNA) manufacturing facility in Mount Holly, North Carolina, where he announced a new $1 billion National Community Deployment Challenge to spur deployment of clean, advanced vehicles in communities around the country.

DTNA is a partner in the Energy Department’s SuperTruck initiative, which is focused on increasing the fuel efficiency of long haul trucks (aka, 18-wheelers) by 50 percent by 2015.

While these particular trucks represent only 4 percent of the on-road vehicles in America, they are responsible for almost 20 percent of the country’s on-road fuel consumption, and this class of vehicle currently consumes more than 30 billion gallons of gasoline each year.

In order to achieve the SuperTruck imitative goal, companies like Daimler are developing and improving a number of vehicle technologies, including engine efficiency, aerodynamics waste heat recovery and hybridization.  Through these types of improvements, the Energy Department estimates fuel economy increases could save long-haul truckers more than $15,000 per truck per year in fuel costs. (In an earlier post, I reported that MIT researchers also have identified significant cost savings for businesses that use electric vehicles to make deliveries on an everyday basis in big cities.) (more…)