2Sustain

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…)

For a decade now, consumers have been calling on chocolate companies to take more responsibility for transparency in the cocoa bean supply chain.  Late last month, the Hershey Company announced that it is doing just that, as it assumes a leadership role in this area and extends its commitment to drive the long-term change that’s needed.

As previously pledged, Hershey has begun to reinforce its cocoa sustainability efforts by accelerating farmer and family development in West Africa, where 70 percent of the world’s cocoa is grown.

In a press release, the company outlined its plans to: (more…)

For years now, consumers, investors, advocacy groups and other stakeholders have been pressing for improved transparency in business practices, and in line with appeals like these, California legislators passed the Transparency in Supply Chain Act (SB 657), effective as of January 1, 2012.

Simply put, The Transparency in Supply Chain Act requires retailers and manufacturers to publicly disclose their efforts to eradicate slavery and human trafficking from their supply chains. The law applies to all corporations doing business in California with more than $100 million in worldwide gross receipts, and as a result, it’s estimated to affect some 3,200 companies.

Not surprisingly, the new regulations have been the subject of much debate. (more…)

In an effort to provide all of us with fundamental information about our communities, the US Environmental Protection Agency (EPA) released its annual Toxics Release Inventory (TRI) earlier this month. This analysis provides information on nationwide toxic chemical disposals and other releases into the air, water and land, as well as data on waste management and pollution prevention activities n neighborhoods across the country.

TRI data is submitted annually to EPA and states by multiple industry sectors including manufacturing, metal mining, electric utilities and commercial hazardous waste facilities. Facilities must report their toxic chemical releases to EPA under the federal Emergency Planning and Community Right-to-Know Act (EPCRA) by July 1st of each year. In addition, the Pollution Prevention Act of 1990 requires information on waste management activities related to TRI chemicals.

EPA’s analysis for the latest reporting year, 2010, concluded that disposals are higher than the previous two years, but lower than 2007 and prior year totals.

The 2010 TRI data showed that since 2009 there has been: (more…)

The world’s highest rates of deforestation, a key factor to rising atmospheric CO₂ levels and subsequent climate change, are occurring in the emerging economies of Brazil, Indonesia and Nigeria, according to research released earlier this month by risk analysis and mapping company Maplecroft.

Maplecroft’s new  Deforestation Index concludes that economic growth, poverty, corruption and the rise of biofuels are among the major causes of deforestation in nine countries which Maplecroft now classifies as “extreme risk.”

These endangered nations are:

Rank      Country

1           Nigeria

2           Indonesia

3           North Korea

4           Bolivia

5           Papua New Guinea

6           Democratic Republic of Congo

7           Nicaragua

8           Brazil

9           Cambodia

The report also details specific challenges faced by different countries.

For example, (more…)