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By José Vázquez

Big for-profits are ‘going good’ by infusing existing business models to address and mitigate social inequalities.  Goldman Sachs elevates impact on social challenges in its 2014 Environmental, Social and Governance Report.  Unilever intends to grow business while reducing environmental footprint and increasing positive social impact through its Sustainable Living Plan.  Chevron is empowering women through business skills development in Brazil.

Going good, going social, what have you, is trending.  And with new trends comes new research analyzing the advantages and limitations of this more ‘socially conscious’ way of doing business.

Some of this research is happening at Oxford University where the  Saïd Business School  and Mars Inc. have tied the research knot in a private-academic partnership intended to “... better understand the value of mutuality and its application in different organizational and economic contexts.”

Saïd and Mars should consider mitigating the potential for any ‘big brother’ effect and address other, non-economic needs of local communities in experimenting with different applications of mutuality, particularly toward supply chains

What is mutuality?

The concept of mutuality applies to a range of situations within the context of a business relationship.  Mutuality is flexible, describing items such as alignment of interests between business partners, interpersonal connections between stakeholders or the logistics of profit-sharing for shareholders as is typical with a public limited company.

Mutuality, with a twist

In the traditional sense, mutuality would be equal seats at the same table.  For Mars and its supply chains, this is not the case.  Instead, Mars’ approach to mutuality is investing in new technology for cacao farmers.  Already, the investment in new technology has resulted in almost triple yield, increasing both Mars’ access to more cocoa and income for farmers.

Mars isn’t the only one interested in making its supply chains more robust through investment.  Amy Haimerl writes about Whole Foods and its loan fund which helps vendors finance their growth.  Whole Foods has directly invested about $20 million so far.  Consider this mutuality, but with a twist.

Mitigating the big brother effect

But wait a second.  Step back and let’s soak this all in.  A big for-profit is pumping money into impoverished, resource-deficit communities.  And now what?  Reframing the question:  So what?

With this investment, Mars risks producing a ‘big brother’ effect.  Poor supply chains may experience pressure to accept new investment and in turn produce higher yields. Since Mars is not providing seats at the table, how will this redefined form of mutuality assure some balance of power between the huge company and local farmers?

Mars should conduct public engagement to reduce a big brother effect.  Engaging at the local level first provides a venue by which local farmers understand the intentions behind this research, rather than limiting mutuality to academic jargon between Mars and Saïd.  Second, obtaining feedback at the local level makes this experimentation more significant in understanding other community needs and perhaps focus Mars’ efforts at investment.

Need for more than just economic investment

And continuing with that last thought for investment, is Mars’ application of mutuality just another phony attempt by a big for-profit to change the world?  Okay, that question is too broad, scratch it.  New question: Is economic investment enough to create paths toward general upward mobility in traditionally impoverished farming communities?

The short answer is no.  Apart from direct investment in new technology, Mars should also consider other, non-economic needs of local farmers in experimenting with mutuality.  A glance toward the competition may be necessary, particularly Nestle’s Creating Shared Value program, which addresses social disparity in items such as:  nutrition, water, the environment, and even corruption and bribery.  Or, if Mars doesn’t want to go ‘too broad’ in identifying all social disparities faced by its supply chains, then maybe a more targeted approach to mutuality is a better fit. Similar to a Fair Trade model, such an approach attempts to incentivize producer activity when meeting labor, environmental and production standards.

So, what’s next?

For Saïd and Mars, experimentation with a redefined version of mutuality is a step in the right direction.  Moving forward, there should be consideration for any pressure experienced by local farmers in producing, after ‘investment from above.’  Furthermore, Saïd and Mars should account for items outside of a rigid business structure and how greater livelihood may be achieved.

Mars can really be a game-changer in applying mutuality -- again, not in giving shares of profit, or seats at the table, but in addressing social needs affecting the livelihood of communities such as healthcare or education.

Mars could start by gathering the opinions of local farmers, asking farmers:  What’s in it for you? Back to the general sense of mutuality in business, this would be the starting point in developing a business relationship, right?  And so, in not just redefining, but also in reframing mutuality, Mars’ approach becomes a trend worth supporting.

Image credit: Flickr/Department of Foreign Affairs

José Vázquez is a Master of Public Affairs Candidate at the LBJ School of Public Affairs specializing in Public Management and Leadership.  Vázquez is interested in innovative solutions to address social disparities locally and abroad. Vázquez lives in Austin, Texas.

Interview by Kelly Eisenhardt

As Environmental, Social and Governance (ESG) issues continue to grow in importance for mainstream investors, KKR’s pioneering environmental initiative provides the resources and tools necessary for its participating private equity portfolio companies to determine materiality and the means to measure it.

Elizabeth Seeger(Washington, D.C.) is a Director on KKR’s Public Policy and Affairs team where she helps oversee the management of environmental and social responsibility issues and opportunities across KKR's portfolio, including through KKR’s newly relaunched Green Solutions Platform (GSP). Ms. Seeger was previously a Project Manager in the Corporate Partnerships Program of Environmental Defense Fund and a consultant with the Corporate Executive Board, where she advised companies across a broad range of industries in Europe and the United States. She is a 2013 Aspen Institute First Movers Fellow and is on the Standards Council of the Sustainability Accounting Standards Board. 

KE: What was the call to action for KKR to pioneer the original environmental initiative - Green Portfolio Program (GPP)?

ES: The Green Portfolio Program (GPP) was officially launched in 2008, but started back in 2007 when I was working at the Environmental Defense Fund (EDF). EDF’s goal at the time was to build a program that would enable private equity firms to implement and accelerate programs that could drive the most environmental benefits possible.

KKR is an active investor in the companies within our private equity portfolio and we have a relatively long investment period, often a 5-7 year investment hold. Thus, we help identify operational priorities and implement them over time. 

KKR and EDF worked together to develop a program that took advantage of the private equity investment platform to help drive both environmental and financial results from eco-efficiency projects. 

KE: How has the mission expanded from the Green Portfolio Program (GPP) to become the Green Solutions Platform (GSP)? 

ES: GPP was a value creation program to drive both environmental and business performance by leveraging KKR’s investment model.

While working on the GPP, we realized that while the process and the tools were evolving, the original framework was rigid and as such it limited the kinds of companies and projects that were part of the program. We noticed companies were working in environmental areas that didn’t fit into the current model, such as land use, renewable resource measurements, and community engagement. Having all companies conform to the same requirements when they had unique programs, key performance metrics, and goals didn’t make sense any longer. There was a larger story to be told beyond measuring avoided costs and environmental impacts. It was clear we needed to create a more flexible model. By launching the Green Solutions Platform (GSP) we have broadened the scope of what we are measuring. We’re still investing in eco-efficiency but we’ve made reporting more flexible, which will enable us to work with more companies over time.

KE: Who are some of the member companies engaged in reporting for the Green Solutions Platform and why have these companies put an emphasis on eco-efficiency?

ES: The members of the program are companies within KKR’s private investment portfolios. This program is a way we support them to achieve efficiencies that benefit both the business and the environment.

Of course, it is relatively easy to get companies to realize the benefits of programs in eco-efficiency because they can benefit in real-time with regard to business value and impact. We have case studies on our website (http://www.green.kkr.com/) that discuss programs that have been able to recognize millions of dollars in avoided costs as well as large reductions in greenhouse gas emissions. There is a relatively quick environmental and economic payback that can be measured. We know that this will remain a large part of the program going forward.

KE: Can you describe some of the eco-solutions companies that are part of the 22 GSP companies?

ES: One of the exciting examples of an eco-solution effort is championed by a company called Citic-Envirotech Ltd (CEL.) They are addressing China’s new stricter water quality regulations by developing a membrane bio-reactor (MBR). This technology is based on combining membrane separation with biological wastewater treatment. Its focus is to reduce water usage and improve quality. You can read the case study on our website: http://green.kkr.com/results/citic-envirotech-ltd. 

Another compelling example would be the work Sundrop Farms is engaged in for the agricultural sector. They’ve developed a system that desalinates seawater for irrigation in semi-arid regions and then uses it to cool, heat, and power high-tech farms. They are in the early stages of this work, which is described on the GSP program website: http://green.kkr.com/results/citic-envirotech-ltd.

KE: What are some of the top-line benefits for companies making environmental solutions core to their business model?

We believe that companies operating with the environment as core to their business mandate or philosophy are increasingly well positioned to handle the challenges of the future. 

We look at in two ways: one is eco-solutions and the other is eco-innovation. Eco-solutions companies benefit from the growth of the overall business as an environmental solution is at the core of operations. Eco-innovations companies experience revenue growth as a result of providing a new product or service. 

Coriance, a company in our Infrastructure portfolio and a member of the GSP, operates a portfolio of regulated district heating concessions in France and is another example of a company that provides an eco-solution to a current societal challenge – the need for clean, dependable energy. Through the concessions, they supply residential, social, and commercial buildings the energy they need through the use of renewable sources primarily through geothermal wells. Their use of renewable energy is around 40-50% of their portfolio and is expected to increase to 57% in 2016. The case study on our website shows a graph charting their expanding use of renewable energy from 2012 to 2017. (http://www.green.kkr.com/results/coriance)

KE: How is KKR creating sustainable value by addressing environmental, social, and governance (ESG) challenges and opportunities within its private equity portfolios?

ES: We try to take a mentality of continuous improvement within our portfolio of companies, believing that we can create and protect value in an on-going way by thoughtfully managing ESG issues and opportunities. We want to partner with our portfolio companies to help them identify risks and opportunities for their business. Another strength that comes with the portfolio is our ability to share best practices across companies, helping KKR and our companies learn what is working across sectors, industries and geographies.  

Through the GPP framework, we developed a series of tools and resources to help companies evaluate risks, seize opportunities, and determine what is relevant and material for each individual company. We also are able to offer resources outside of eco-efficiency and cover topics including worker health and safety, regulatory compliance, and crisis communications.

KE: How can companies learn more if they want to engage in the GSP?

ES: We invite your readers and all companies to learn from the work happening inside the Green Solutions Platform by visiting our website: green.kkr.com. As a reminder, though, this program is only for KKR portfolio companies. 

After a company enters the KKR portfolio, they would be eligible to enter in the program depending on their needs and areas of focus. We discuss this and our other ESG programs with members of both KKR’s and the company’s management team to determine if a program is a good match for the company’s needs. 

Assuming we move forward, we engage in a dialogue to set goals and a timeline that works for all parties, providing the company with resources and guidance as needed. We define our success not just in producing immediate results, but also in helping build processes and programs that will exist long after we are an investor in a company. Therefore, we work to make sustainability sustainable by providing the tools for companies to identify, operate, and measure projects on their own.

For more on our other ESG programs and processes, you can read our latest ESG report available at: www.kkresg.com. 

This article appeared originally on CSRwire.

 

 

By Sangeeta Haindl —

What would you say, if you knew that only one in five U.K. small businesses are majority-woman owned and yet contribute over £75 billion to the country’s economy? Or that if women set up businesses at the same rate as men, there would be a significant boost to the U.K.’s economic growth. These thought provoking statistics are revealed in the Federation of Small Businesses (FSB) latest report, Women in Enterprise: The Untapped Potential, which explores the specific challenges faced by women-led businesses along with recommendations for improving support, developing mentoring networks and increasing the diversity of business ambassadors.

The report shows that the U.K. economy is missing out on more than 1.2 million new enterprises due to the untapped business potential of women; that’s despite a number of initiatives by the government along with devolved agencies and the business community to promote and facilitate women business leaders and enterprises. In 2014, 20 per cent of single-person businesses and 18 per cent of smaller firm employers in the U.K. were majority-led by women; and self-employment is at the highest level in 40 years with the recent growth among women!

Small firms make a huge contribution to the U.K. economy; and if it was to harness the still largely untapped potential of women entrepreneurs, it could lead to additional jobs, economic growth and a more diverse and representative small business community - all issues that the U.K government is trying to solve. The FSB, a not-for-profit making and non-party political organisation wants a cultural shift towards equality in business and will soon launch a dedicated ‘Women in Enterprise Taskforce’ supporting woman entrepreneurs and business owners to get to the root of these problem. Helen Walbey, FSB Diversity Policy Chair, says: “Everyone should have the same chance to succeed in business. Understanding the importance of diversity and getting more women into business is critical for a dynamic and vibrant small business sector.”

Interestingly, from this study women-led businesses tend to be more highly concentrated in health, social work, community, social and personal services. There is a lack of women-led businesses in construction, transport, storage and communications sectors; reflecting traditional gender segregation patterns found in the wider labour market. While the sectors where there are greater numbers of female-owned businesses, tend to have lower levels of business growth with smaller turnovers. Tellingly some women felt that across all sectors there appeared to be a continued perception that entrepreneurship and business ownership is a male career.

Sadly, in this day and age these FSB findings reveal that there are specific and persistent barriers for too many women when setting up and growing their own businesses. From balancing work and family life (40 percent), achieving credibility for the business (37 percent) and a lack of confidence (22 percent). When comparing the U.K. to the other countries such as France, Germany, the U.S., Australia, Japan and a number of Scandinavian countries – its gender gap is high, placing it low down with Hungary, Poland and Canada. The only country with a greater proportion of female entrepreneurs to male entrepreneurs is Switzerland. While Spain, China and Italy are among those countries who report some of the highest levels of female entrepreneurship! It is definitely time for change here in Britain.

Photo Credit: Pixabay

This article originally appeared at Justmeans. 

 

With a busy week behind you and the weekend within reach, there’s no shame in taking things a bit easy on Friday afternoon. With this in mind, every Friday TriplePundit will give you a fun, easy read on a topic you care about. So, take a break from those endless email threads and spend five minutes catching up on the latest trends in sustainability and business.

Two weeks after the historic Paris Agreement signing ceremony, leaders gathered again this week to discuss the future of climate action. On Thursday and Friday, city government heads, business executives and civil-society leaders assembled in Washington, D.C. for Climate Action 2016, a multi-stakeholder summit aimed to accelerate climate action implementation.

Just in time for the summit, the Science Based Targets initiative announced a new milestone for corporate climate action: 155 companies are now committed to ambitious emissions-reduction targets that align with the global effort to limit global warming to "well below" 2 degrees Celsius.

"These commitments form the foundation of a credible corporate climate action strategy as the world transitions to the low-carbon economy," the Science Based Targets initiative -- a partnership between CDP, the U.N. Global Compact, the World Resources Institute and WWF -- said in a press release.

Forty-one new companies have joined the initiative since the COP21 negotiations in Paris last December. So, which companies are stepping up, and what do they plan to do? You can find a full list of committed companies here. But for those of you on the run, we rounded up some of the big ones below.

General Mills

General Mills' commitments are widely considered the windfall that started it all. The consumer packaged goods giant was the first multinational to commit to science-based targets -- months before the COP21 climate talks convened in Paris.

As a refresher, here's what the company plans to do: reduce absolute greenhouse gas emissions by 28 percent across its full value chain – from farm to fork to landfill – over the next 10 years. CEO Kendall Powell also joined other major food company CEOs in a letter to government leaders, calling for strong action ahead of COP21. With the way things are developing for the Paris Agreement, we'd say those leaders were listening.

Coca-Cola

Coca-Cola committed to reduce the absolute greenhouse emissions from its core business operations by 50 percent by 2020, using a 2007 base-year. It also committed to reduce the GHG emissions from its drinks by 33 percent by 2020, using the same base-year.

One of Coca-Cola's largest bottling partners, Coca-Cola Hellenic Bottling Co. (Coca-Cola HBC), also made big strides toward science-based commitments. The bottler, which serves 28 countries, mostly in Europe, aims to reduce total value-chain emissions by 25 percent per liter of beverage from 2010-2020, and reduce Scope 1 and 2 emissions by 50 percent per liter during the same time period.

“In the past, companies would set targets without the necessary information or a solid point of reference. They would just pick a round figure and aim for cuts of 20, 30, 40 percent, with no further justification, other than generic aspirations," Galya Tsonkova, environment manager for Coca-Cola HBC, explained in press statement. "Now, we have a target that is approved by external, credible experts, verified through relevant scientific methodology. That makes a big difference, both for external stakeholders, as well as to our management.”

Dell

Dell is making big moves in the sustainability world. It was one of the first companies to introduce plant-based, biodegradable packaging, and it's inching closer to a closed-loop supply chain for its electronic products. And when it comes to greenhouse gas emissions, this sustainability darling doesn't disappoint.

The company committed to reduce GHG emissions from its facilities and logistics operations by 50 percent by 2020, using a 2010 base-year. If that's not enough, it also aims to reduce the energy intensity of its product portfolio by a whopping 80 percent by 2020, using a 2011 base-year.

Sony

In its latest commitment, Sony said it plans to reduce GHG emissions from its operations by 42 percent below 2000 levels by 2020.

The commitment is the next step in a lofty long-term vision: to reduce the company's environmental footprint to zero by 2050. Such a goal may sound unattainable, but Sony is working with the Science Based Targets initiative to calculate just what it will need to make it happen -- namely, a 90 percent reduction in total value-chain emissions from 2008 levels.

Thalys

Those reading this story in the states may be scratching their heads at this company name. But readers in Europe likely know the international high-speed rail operator well. Its speedy train services can carry riders from London to Amsterdam in less than two hours -- providing a quick (and environmentally preferable) alternative to air travel.

Now, Thalys is going a step further by cutting GHG emissions per passenger kilometer by 41.4 percent by 2020, compared to a 2008 base-year.

Procter & Gamble

Procter & Gamble committed to cut emissions from operations by 30 percent from 2010 levels by 2020. The company also joined a WWF-sponsored program, called the Climate Savers Program, which helps companies with their efforts to address climate change. Learn more here.

Enel

It may be surprising to see a company whose main mission is fossil fuels on this list. But Enel, an Italian electric and gas utility, is making bold moves toward a low-carbon future.

The company plans to reduce carbon dioxide emissions by 25 percent per kilowatt-hour of energy sold by 2020, using 2007 as a baseline. The target includes the decommissioning of 13 gigawatts of fossil power plants in Italy. It's a milestone in the company's long-term goal to operate in carbon neutrality by 2050.

NRG Energy

Renewable-focused energy company NRG catapulted into the Fortune 250 through its emphasis on low-carbon solutions, so it's no surprise that the company wants to take things even further.

NRG committed to reduce absolute GHG emissions by 50 percent by 2030, using 2014 as a baseline. The company ultimately aims to cut absolute emissions by 90 percent between 2014 and 2050.

Pfizer

Pharmaceutical giant Pfizer plans to reduce GHG emissions from operations by 20 percent by 2020 from a 2012 base-year. This 2020 goal will keep the company on track to achieve a 60 to 80 percent reduction in emissions between 2000 and 2050.

The company committed to require 100 percent of its key suppliers to manage their environmental impacts, including GHG emissions, through effective sustainability programs. It hopes to see 90 percent of these key suppliers institute GHG-reduction targets by the end of 2020.

International Post Corp.

International Post Corp., a global cooperative association of 24 postal operators, committed to reduce absolute emissions by 20 percent per letter and parcel delivery by 2025, from a 2013 base-year.

Headquartered in Brussels, the International Post Corp. counts the U.S. Postal Service, as well as the national posts of Belgium, Ireland, the U.K. and Canada, among its members. The association recommends that its member postal operators submit their individual targets to the Science Based Targets initiative for official quality checks.

Image credit: Eskinder Debebe for the U.N. News Center

Lebanon is one of the most dynamic countries on Earth. In an area far smaller than the state of Connecticut, this tiny country offers almost as much scenery and activities as California.

Its Beqaa Valley to the east produces fantastic produce, which you can find in abundance throughout the towns and cities on the country’s Mediterranean coast. The Mount Lebanon range is home to skiing in the winter and the iconic Cedars of Lebanon park, which offers spectacular scenery (and explains the design of the nation’s flag). Towns such as Byblos are home to ruins dating back to the Phoenicians. The country’s capital, Beirut, is arguably the educational, cultural, entertainment, culinary and party capital of the Middle East. And its approximately 20 million people have a reputation for being entrepreneurial and keenly business-savvy.

But of those 20 million people, only about 4 million currently live within the country’s borders. Lebanese emigration has been ongoing for over 100 years; the country’s 1975-2000 civil war, religious strife, longstanding tensions with Israel (or Occupied Palestine, as most Lebanese refer to what is to the south), and now the added strain of at least 1 million Syrian refugees encamped in Lebanon are among the reasons many Lebanese have left, or want to leave.

Many Lebanese seek work in the Gulf States of the United Arab Emirates, Saudi Arabia and Qatar in order to support their families yet still live a short flight away from home. Others have long emigrated as far as Australia and even Brazil, where as many as 6 million people of Lebanese descent are settled in industrial centers such as São Paulo and Porto Alegre.

Political and social problems aside, corruption has become the largest reason why many Lebanese have become frustrated with their home country. And the same has become true in other countries throughout Northern Africa, the Levant and the Arabian Peninsula.

According to a new report issued by Transparency International, Lebanese have a dim view of how their country is tackling corruption. And over the past year, 92 percent of citizens polled in this survey believe it has become even worse over the past year. About two-thirds say the public sector is entirely corrupt, and 76 percent insist that the government is doing a terrible job at fighting corruption.

Over the past year, 28 percent of Lebanese say they have paid a government official to get something done -- whether it was to attain timely medical care, score a building permit or identification document, or settle a dispute with a public utility. Overall, the only country in this region that scored worse is Yemen, but Egypt, Morocco and Sudan also report high rates of corruption.

One can see corruption’s effects walking through the streets of Beirut, where bombed-out shells of buildings still sit only a few blocks from the city’s stunning Corniche, or waterfront. The city’s central district, or Centre Ville, has been largely rebuilt, as that effort was a priority of Rafik Hariri, the nation’s late prime minister. But even in many of the city’s poshest neighborhoods, buildings stand decrepit; on many blocks, monstrous concrete structures replaced the Italianate architecture that helped burnish Beirut’s reputation as the “Paris of the Middle East.”

“The government picks and chooses who they want to re-develop this city, so if you don’t have the proper connections, forget it,” said a Beirut-based designer (who wishes to be anonymous) in an email to TriplePundit. “If you wonder why many properties like hotels are never updated, it is because many owners just do not want to deal with the bureaucrats, because they know they won’t be able to afford the bribes to do any upgrades. Meanwhile, beautiful buildings will suddenly disappear because that owner had a good friend in the government — or could afford to pay him to get the work done faster.”

In Lebanon, as well as the other eight nations surveyed by Transparency International, corruption has proven to become the insufferable reality for the region’s youth. Citizens younger than 35 are most likely to pay a bribe. And in a region where tradition dictates that men absolutely must be the breadwinners, Middle Eastern men -- far too many of whom are unemployed -- dole out bribes at a higher rate than women. The poor, and those who live in rural areas, are also more susceptible to bribery’s vicious circle.

For anyone who thought the Arab Spring of 2011 offered hope to a population long subjected to authoritarian yet ineffective regimes, Transparency International’s findings are indeed depressing. And the report also offers one reason why so many young people want to flee the region — or become tempted to join organizations that seek to upset the status quo, usually by violence.

The result is a jaded population: The survey suggests 1 in 3 people, or 50 million people within this region, have paid at least one bribe in the past year. Many suffer in silence, as 40 percent who reported corruption say they have also endured some form of retaliation.

The one bright spot of this report is that many respondents to this survey feel that the people themselves can make a difference in fighting corruption. That feeling runs in highest in Tunisia, which out of all countries in the region offered the most positive assessment.

Elsewhere, there is some hope, as more governments have welcomed sustainable development programs, which can go a long way toward boosting employment opportunities for the nation’s youth. And while the decrease, or outright cessation, of energy subsidies in this region have been somewhat disruptive to the population, they have also leveled the playing field, as these programs largely benefited the countries’ richer citizens.

But unless these Northern African and Middle East nations can get a handle on rooting out corruption, resentment will continue to foment within the region, as citizens' earnings continue to be unfairly diverted to those who already control the country’s resources.

 

Image credits: Leon Kaye

Hamdi Ulukaya, the founder of Chobani yogurt, made headlines late last month when he gave 10 percent of the company's stock to his 2,000 employees. It was an extraordinary act of generosity for a man who owns a business with annual sales of $1 billion. It was also smart business management.

Thirty-six percent of Americans who work for private companies that issue stock also own stock or options in their company, according to a 2010 survey sponsored by the National Center for Employee Ownership. The NCEO estimates that 13.9 million workers participate in an employee stock ownership plan (ESOP); 1.8 million have a stock bonus or profit-sharing plan; 9 million are compensated with stock options; and 11 million have access to a stock purchase plan.

Ulukaya gave his stock with no strings attached. But most founders who want to empower their employees do it by selling their stock to an ESOP, which operates like a retirement trust fund and is regulated by the IRS and the Department of Labor.

Selling stock to an ESOP is a good choice for founders who want to realize their gains while also protecting their values, says Corey Rosen, founder of the NCEO. "A lot of baby-boomers don't like the idea of selling their companies, especially to a private equity firm that will strip the assets and flip it," he says. "Selling stock to an ESOP gives the founder a better chance of preserving the culture." The rules also allow sellers to defer their capital gain, and to buy the stock with funds borrowed against the company's future revenues. Employees sell their stock back to the company when they retire.

Ulukaya, who is 43, didn't give away 10 percent of his company to get a break on his taxes. But he might get more than his money back by encouraging Chobani's long-term growth.

A well-run, employee-owned firm fosters what Rosen calls a "high-involvement culture." "When employees are owners, they benefit by finding better ways to run the business," he says. Federal rules for ESOPs were set up in 1974, so researchers have had four decades to study their performance. And the research overwhelmingly shows that employee-owned companies produce more jobs, give their employees better retirement benefits, and lay off workers much less often than other companies do.

Chobani's employees own 10 percent. But the 175,000 employees of Publix Super Markets control over 50 percent of the company's stock. Other majority employee-owned companies include the supermarket chains Price Chopper, Winco, Brookshire Brothers and Harps; W.L. Gore & Associates, the makers of Gore-Tex; and Schreiber Foods, a Wisconsin-based dairy company with three times as many employees as Chobani. Added together, the 100 largest employee-owned companies employ 676,000 people.

ESOPs are complex legal structures, and Rosen says that building a high-involvement culture adds yet another layer of complexity. The strategy works best for privately-owned companies that are in good financial shape, with low debt, good cash flows, and owners who are committed to their employees. That was a good description of New Belgium Brewing, which became 100 percent employee-owned in 2012 (and is also a certified B Corp). Co-founder Kim Jordan financed the company's ESOP with a bank loan and guarantees of payments from future revenues.

"One of the neat things about business is that you can do what you want with the profits," Jordan told the PBS News Hour. "You only get one life, so you should do the things that bring you joy. This brings me joy."

It also brings growth to her company. When Jordan transferred her ownership, New Belgium was distributed only in Western states from its Colorado brewery. On May 2, it opened a tasting room attached to a second, state-of-the-art brewery in Asheville, North Carolina. New Belgium is on track to become a national brand, and it is already the eighth-largest brewer in the United States.

Image credit: Chobani 

Editor's note: This post originally appeared on the World Resources Institute blog.

By Eliza Northrop

The Paris Agreement signing ceremony at the United Nations in New York last week exceeded all expectations. A record-breaking 175 Parties (174 countries plus the European Union) signed on, and a further 15 countries also deposited their “instruments of ratification, acceptance or approval,” making them the first 15 Parties to officially join the Paris Agreement.

Pacific and Caribbean Islands led the charge, with Barbados, Belize, Fiji, Grenada, the Maldives, the Marshall Islands, Mauritius, Nauru, Palau, St Kitts and Nevis, St Lucia, Samoa and Tuvalu all formally joining. Somalia became the first African country to join, as well as the first Least Developed Country (LDC). Palestine, which only just joined the U.N. Framework Convention on Climate Change (UNFCCC) on Dec. 18, 2015, also joined on Friday.

The momentum didn’t stop there. At least 27 countries indicated their intent to join the Paris Agreement either this year or as soon as their domestic approval process allows—among them the United States and China. Combined, these countries would bring the total to 42 countries representing 49.3 percent of emissions. That’s pretty close to the threshold necessary for the Paris Agreement to become legally binding — when 55 Parties representing at least 55 percent of global greenhouse gas emissions join.

Filling the 6 percent emissions gap

So assuming all of these countries do join the Paris Agreement early, which countries will it take to cross the 55 percent emissions threshold?

Below are four possible scenarios on how the world can get to 55 percent of global emissions. Keep in mind that these are just one side of the coin — at least 55 countries will need to join the agreement as well.

One and done: Russia

If Russia were to join the Paris Agreement along with the countries referred to above, the total emissions threshold would be met. If this were to occur, it wouldn’t be a first for Russia – the country also triggered entry into force of the Kyoto Protocol, the previous international climate agreement under the UNFCCC.

Russia’s Parliament, the Federal Assembly, must approve by majority vote the country’s joining. Given that Russia has yet to provide any indication of when it intends to join the Paris Agreement, it is unlikely the country is prioritizing this politically.

Pick two: Brazil, India and Japan

Brazil, India and Japan are all relatively large emitters. If any two of these three countries were to join, the 55 percent of global emissions threshold would be met.

Brazil must get the approval of both houses of its National Congress to join. On Monday Brazil’s government indicated it would ask its National Congress to do just that, but it’s unclear whether this will happen anytime soon given the current political turmoil.

Neither India nor Japan have made firm statements about when they will join the Paris Agreement, but India’s environment and energy ministers have emphasized the country’s commitment to being part of the solution and fulfilling the targets set in its national climate commitment. At the signing ceremony, Japan indicated it would start the necessary preparations in order to ratify, but provided no timetable.

For India, the decision to join the Agreement rests with the executive government. For Japan, two houses of its legislative body, the Diet, must approve entry, with one-third of the members of either house present for the majority vote. The agreement must then go to the Cabinet for advice and approval before being attested to by the Emperor.

Triple play: Japan, South Africa and South Korea

The emissions threshold would also be met if Japan, South Africa and South Korea all joined. Both South Africa and South Korea have expressed support for early entry into force and for taking the necessary measures to make this happen, but neither country has committed to completing the process in 2016.

For both South Africa and South Korea, the nature of the domestic approval process depends on the nature of the agreement.

If South Africa considers an agreement to be technical, administrative or executive in nature, the executive government has authority to join. Any other international agreement must go to both houses of South Africa’s Parliament for approval by a majority vote in each house.

South Korea’s National Assembly must consent to join any international agreements that relate to mutual assistance or mutual security; important international organizations; friendship, trade and navigation; peace; legislative matters, or any agreement that restricts the sovereignty of or places important financial obligations on the nation. Given its global significance, the Paris Agreement is likely to fall into one of these categories.

The variety pack

The above scenarios all focus on small numbers of relatively large emitters getting us over the 55 percent emissions threshold. However, there are numerous other possible country combinations. Least Developed Countries — which account for more than 3 percent of global emissions — as a group have already committed to join the Paris Agreement early. Combined with the 42 countries above, that brings us well over the 55 countries threshold, but still shy of the emissions threshold.

Countries that could play an important role in filling the emissions gap include small-to-medium size emitters: Indonesia, Vietnam, Thailand, Iran, Turkey, Cote d'Ivoire, Algeria, Nigeria, the United Arab Emirates, Colombia and Peru.

Regardless of which countries are the ones that get us to the double threshold of 55 countries and 55 percent emissions, the significant political will demonstrated last Friday at the signing ceremony increases the likelihood that the Paris Agreement will enter into force early — perhaps even this year. The focus now shifts to turning countries’ national climate plans into steel-in-the-ground projects, ensuring the world meets the ambitious goals of the Paris Agreement.

Learn more: Explore the Paris Agreement Tracker and build your own scenario for how to get reach the 55/55 threshold.

Image credit: U.S. State Department via Wikimedia Commons

Eliza Northrop is an Associate in the World Resource Institute's International Climate Action Initiative. She is an international environmental lawyer with expertise in climate change, indigenous rights and governance. Her work focuses primarily on international climate law and policy issues, in particular the design and implementation of the Paris Agreement.

By Clair Jones

There is an obvious movement within our culture to look for meaningful work: work that allows us to live according to our values, make a difference in our communities, and incorporate service into our work life -- not just pay the bills. Businesses of all sizes are starting to take this to heart, using environmental and social-justice volunteer programs to inspire loyalty in existing staff and recruit valuable new talent.

These 10 companies are leading the charge in sustainable company culture and environmental volunteering initiatives.

1. Timberland

Stratham, New Hampshire

Timberland, a popular footwear and outdoor apparel company, provides full-time employees with up to 40 paid volunteer hours per year, including an annual Earth Day event in April. Over 300 employees came together to complete 7 different service projects for Earth Day 2015. One project included revitalizing the Salisbury, Massachusetts Dog Park and Rail Trail, a 1.4 mile non-motorized path that provides safe outdoor recreation for locals.

“As an outdoor lifestyle brand, we are grateful to our employees and partners who are so passionate about joining in our mission to help protect the environment,” says Atlanta McIlwraith, senior manager of community engagement at Timberland. “It’s incredible to see the company band together for our earth day service events, and even more incredible to see the difference we’ve been able to make across the globe. We look forward to continuing these efforts and inspiring others to get involved in their communities around the world,” says McIlwraith.

2. Clearlink

Salt lake City, Utah

https://youtu.be/7QbB2azynfw

Clearlink, a digital marketing agency, provides its employees with paid time off to volunteer for multiple environmental causes each year, working with celebrated local Utah groups TreeUtah and SaveOurCanyons, as well as larger national charities like Walk4Water.

Clearlink recently tackled one of its largest volunteer activities to date, working with TreeUtah to plant 1,200 trees at Parley’s Historic Nature Park, a popular area for bird watchers, dog walkers, and community members looking to escape the city and spend time outdoors. Over 100 Clearlink volunteers planted one tree for each of the company’s 1,200 employees in an effort to offset their carbon footprint and improve air quality.

“By planting these trees we were able to provide clean, fresh oxygen for more than 2,400 people across the Salt Lake Valley, ultimately creating a lasting, positive impact for future generations to come," says Tyson Olcott, public relations manager for Clearlink.

3. Optoro

Washington, District of Columbia

Technology start-up, Optoro, reduces landfill waste by helping clients extend the lifecycle of their overstocked, outdated, or returned inventory. While their products create a more sustainable supply chain for retailers, Optoro also does its part to improve local ecosystems by providing employees with plenty of environmental volunteer opportunities.

Most recently, the Sustainability Team at Optoro teamed up with the University of the District of Columbia Center for Sustainable Development and D.C. Housing Authority to transform a vacant three-acre lot into a vibrant, useful area for local residents to learn about and interact with their environment.

“Sustainability and giving back is baked into our company’s DNA,” says Ann Calamai, director of sustainability at Optoro. “Not only did this community enhancement project improve the biodiversity of our ecosystem and reduce urban heat island effects, it provided a tangible benefit to D.C. residents by making healthy food and exercise more accessible."

4. Dogfish Head Brewery

Milton, Delaware

Dogfish Head Brewery recently built a $9 million on-site facility that will allow it to clean and reuse its waste water to clean pipes and tanks. The company also holds an annual fundraising race, called the Dogfish Dash, where employees are encouraged to volunteer to raise money for the Delaware Chapter of The Nature Conservancy. Last year’s event was the brewery’s 10th, which raised over $200,000 to help The Nature Conservancy protect and restore 30,000 acres of land in Delaware, securing freshwater and ocean resources for local wildlife and inspiring generations of conservation leaders and supporters.

“Everything Dogfish makes is from ingredients that are all natural and come from the earth. We want to protect open grounds, farming grounds, agricultural lands, and wild preserves, so The Nature Conservancy’s cause is near and dear to our hearts,” says Dogfish Head Brewery founder and president, Sam Calagione.

5. Greenvelope.com

Seattle, Washington

Digital invitation and event management solution, Greenvelope, was founded with the goal of offering an ecofriendly alternative to paper invitations. Since the company first launched in 2008, it has donated a percentage of every sale to Mountains to Sound, a Pacific Northwest nonprofit that maintains forest along the Interstate-90 corridor, and in 2014 Greenvelope became an official member of 1 Percent for the Planet.

“Sustainability and giving back is in the core of our product and our mission,” says Greenvelope founder and CEO, Sam Franklin. “We also want to do more than just help hosts save paper, but to help replenish our natural resources and give back to our communities through donations and volunteering.”

Greenvelope teams up with local non-profits like Mountains to Sound and Green Seattle Partnership to offer quarterly volunteer projects where employees plant trees, remove invasive species and help maintain the green spaces in their community.

6. UGE International

New York City, New York

UGE International has deployed renewable energy solutions in over 80 countries around the world. Best-known for putting wind turbines on the Eiffel Tower and installing solar on rooftops in China, the company also encourages its employees to give back to their local community.

Each year, UGE celebrates the week of Earth Day by offering volunteer opportunities and educational and awareness events for employees. During the 2015 UGEarth Week, volunteers participated in a rooftop garden expansion project at the Metro Baptist Church of NYC. As part of the Hell's Kitchen Farm Project, the garden donates food to local pantries to help feed the hungry.

“It was very fulfilling to have the chance to be part of bringing healthy food to those who might otherwise not be able to access fresh produce,” says Jo Walton-Hespe, UGE's sustainability manager. “The project certainly brought us back to nature, and encouraged us to remember why we care so much for the planet and our community."

7. DaVita HealthCare Partners

Denver, Colorado

DaVita HealthCare Partners, a leading provider of dialysis services, is working to reduce their carbon footprint both inside and outside of their Denver, Colorado headquarters. The company has significantly reduced paper consumption, water usage, and solid waste in 1,991 dialysis centers since setting firm sustainability goals in 2007.

Each year, DaVita hosts an Earth Day initiative where employees from around the country organize community service projects that make a positive impact on their local community and environment. In honor of Earth Day 2015, 113 DaVita HealthCare Partners employees picked up 154 pounds of trash and 1,505 cigarette butts at Manhattan Beach in California.

"It's an honor to work at a place that values taking care of our communities and world around us,” says Rachel Mountin, sustainability manager for DaVita. “Teammates and their families and friends volunteered more than 5,400 hours on green projects in 2015 -- planting gardens, beach clean-up, and educating the community about composting.”

8. ABM Healthcare

Detroit, Michigan

Global facilities management company, ABM, helps clients conserve energy by lowering consumption, incorporating energy-efficient appliances and systems, and encouraging environmental stewardship through their ABM Greencare program. The company is one of the largest participants in the Environmental Protection Agency’s Energy Star program, and also partners with the Green Parking Council, a non-profit that helps to plan the conversion of parking facilities to more sustainable, environmentally responsible structures.

ABM Healthcare Support Services' celebrated 2015 as its fifth year of community involvement with Greening of Detroit, a non-profit dedicated to revitalizing the ecosystem of the Metro-Detroit area through tree planting, green spaces, and urban farms.

“While our company is blessed to be able to offer monetary donations to some of these organizations, we would like to go further,” says Jenny Day, marketing coordinator for ABM Healthcare Support Services. “We set up work days throughout the year where ABMers join the cause and can roll up their sleeves and work toward building, planting, feeding or educating individuals and families in need.”

9. Scotts Miracle-Gro

Marysville, Ohio

Miracle-Gro, a market leader in lawn and garden care products, kicked off their GRO1000 initiative in 2011 with a goal of supporting the creation of more than 1,000 community gardens and green spaces by 2018. Since then, they have helped plant over 500 gardens, and have donated nearly 5,000 hours of service to nonprofit organizations through their Give Back to Gro Community Service Program, which allows employees to receive two paid days off per year to volunteer in their communities.

Miracle-Gro teamed up with the Pasadena Tournament of Roses Association to provide a volunteer opportunity at Muir Ranch, a two-acre urban farm on the campus of John Muir High School in Pasadena, California. The Community Supported Agriculture project provides fresh fruits and vegetables for the high school cafeteria, as well as local residents.

“Programs, like the one at Muir Ranch, help students find inspiration in the most unexpected places,” says John Vass, vice president and general manager of Miracle-Gro. “This year we want[ed] to encourage families, gardeners, and flower lovers everywhere to step outside, get their hands dirty and find an adventure in their own backyard.”

10. NRG Energy

Princeton, New Jersey

https://www.youtube.com/watch?v=FTDdhXljAcE&feature=youtu.be

NRG Energy’s CEO David Crane recently announced the company's sustainability goals to reduce company carbon emissions by 50 percent by 2030 and 90 percent by 2050. The company is making giant strides toward this goal by opening a new environmentally-conscious workspace, slated to be finished in 2016, that will be among the most sustainable commercial sites in the country.

NRG and its employees visit Haiti every year as a part of a rebuilding effort that stemmed from the 2010 earthquake. Employees help install solar panels on sites such as hospitals and schools, to provide them with a source of sustainable power. One project that employees are particularly proud of is a solar installation donated to a medical center in Marmont, Haiti, that provides reliable, cost-effective, low-emissions energy used to improve patient care.

“NRG has had a long standing connection to Haiti – for over five years we’ve developed meaningful relationships with over 30 organizations, donated more than two million dollars, and positively impacted between 50,000 and 65,000 men, women and children,” says Jennifer Brunelle, director of global giving for NRG Energy.

Salary, benefits, and bonuses still matter when choosing a dream job, but many of us also long for employment that lets us give back to society in a meaningful way. These 10 businesses are fostering a sustainable company culture that places value on volunteer service, helping keep their local ecosystems healthy and doing their best to minimize their impact on the environment. While they are considered innovators today, in the future we can only hope environmental stewardship will be the norm.

Image and video credits: 1) & 2) courtesy of Timberland; 3) Clearlink; 4) Optoro 5) Dogfish Head Brewery 6) Greenvelope.com 7) UGE Energy 8) DaVita Healthcare Partners 9) ABM Healthcare 10) Scotts Miracle-Gro 11) NRG Energy

Clair Jones is a freelance journalist with an interest in sustainable living and business, off-the-grid homesteading, science and technology, and related topics.

By Jerry Nelson 

Following years of anticipation, East Austin’s Community First Village opened on April 27. The brainchild of Alan Graham, the village is a groundbreaking development meant for Austin’s homeless population.

The park is located on Hog Eye Road in Austin and sits on 27 acres. Consisting of over 135 homes, each dwelling is between 144 and 180 square feet and includes a sleeping area and a porch. The residents have access to outdoor kitchens, private bathrooms, showers and a laundry. The village also has a medical center, amphitheater, a wood workshop, chapel, market and a communal garden.

About 45 people are already living in the village, where rent starts at $220 a month. At least 150 more are expected to call the community home by the end of 2016. Volunteers expect the community to reach its full capacity of 250 by Spring 2017.

Designed to bring affordable and sustainable housing to the region’s homeless, Community First has been a dream of Graham for years. In his role as CEO of Mobile Loaves and Fishes (MLF), a nonprofit that provides meals to homeless populations, he identified a need for more permanent housing.

Graham was named 2015’s Austinite of the Year for his creative approach to addressing one of the root causes of homelessness. It's not just about giving people a roof over their heads, as shelters and hostels can do, but also giving them a sense of stability, independence and, most importantly, community.

Each cottage is 12 feet by 12 feet and has a wall socket and ceiling light. The homes are designed for natural cooling and airflow to minimize power use.

Close to the communal garden, beehives and chicken operations thrive under the care of community residents and volunteers. Dozens of chickens live in a large indoor coop made of repurposed materials and also have a larger, shaded yard. A movable rabbit hutch helps fertilize the raised garden beds which grow a variety of vegetables and herbs. The vegetables and eggs are sold daily on Austin’s streets.

Future plans call for a memorial garden and columbarium as well as an aquaponics fish operation.

Community First experienced some early problems when potential neighbors turned down prospective locations. Observers who work with the homeless say it is vital to approach necessities such as shelter before trying to resolve concerns such as mental illness and substance abuse.

Homeless villages not welcome everywhere

While volunteers and nonprofit groups are working to house the homeless, some agencies are doing all they can to sweep the homeless off the streets and into hidden housing facilities.

In summer 2014, a whistleblower  who worked inside the Los Angeles Department of Health told Info Wars that city officials planned to forcibly remove homeless people from the streets and house them in facilities from which they cannot leave. Pointing to a page on the Health Department’s official website, the whistleblower reported how “roving teams” were meant to help provide short-term housing to homeless DHS patients.

The idea of forcing homeless people from the streets and into facilities has been taking place across America. In 2015, the city of Colombia, South Carolina, voted to make homelessness a crime. The homeless were given the option to either enter a shelter on the edge of town or be sent to jail.  Over 45 cities throughout the country have already made feeding the homeless a crime and some cities, such as Camden, New Jersey, are bulldozing entire homeless encampments.

Image credit: Community First Village 

Jerry Nelson is an American freelance writer and photographer covering social justice issues globally. When not traveling, he lives in Buenos Aires with his wife Alejandra and their cat, Tommy. Follow him on Twitter.

By Kelsey Gaude

I recently had the amazing opportunity to travel to blue, beautiful Belize for the first time: a country known for the Munda Maya ruins, the incredible Great Blue Hole and the World Heritage barrier reef system.

I attended Oceana’s Reef Day, which was an educational event for Belizean youth that was supported by organizations that serve and protect the reef. During the event I spoke with Rubi, a Belizean student studying marine biology at the University of Belize. We discussed the unique cultures of Belize and the fantastic Marie Sharps hot sauce. But then our conversation quickly turned to the darker side of beautiful Belize: solid waste management.

Waste management in Belize

Belize produces approximately 200,000 tons of waste annually, which is roughly two to three pounds of waste per person, per day. This is a relatively low per-capita rate, but the systems in place to manage Belize’s waste are flawed -- and this is causing serious environmental and human health issues.

Trash pickup is costly and with a 14.4 percent unemployment rate for Belizeans, this is not a viable solution. Therefore, most waste is tossed onto the sides of highways; when exposed to the elements, it is dispersed everywhere. When the waste is collected, it is incinerated, which is detrimental to environmental and human health.

"This isn't just our issue"

Given the economic constraints, it is difficult to point a disappointed finger at Belize. The U.S. has the infrastructure and funding for waste management, and still our systems of waste management are far from ideal. For instance, only 8 percent of plastic is recycled in the states. When we don't recycle our waste and put it back into the market, it ends up at the landfill. Or does it?

Rubi relayed a sobering reminder: “You know, this isn’t just our issue … Do you know how many Forever 21 bags I have found on our coast? This isn’t coming from us in Central America; it’s coming from you. We don’t have Forever 21.”

While the problem is not the result of Americans deliberately dropping plastic bags into our oceans, unfortunately, this is what happens to a lot of displaced waste. The trash finds its way into earth’s dynamic systems and ends up in ocean gyres or on foreign coasts.

Plastic is E-V-E-R-Y-W-H-E-R-E, and this is just one side of its darker story. BPA is an industrial chemical that is utilized as an abundant plastic source, and the CDC’s research shows that 93 percent of Americans over the age of 6 have tested positive for BPA in their systems. This is a big deal because studies have concluded that BPA may impair brain function, cause high blood pressure, impact the endocrine system (gland system), and lead to serious disorders such as infertility, cancer, asthma, trans-generational effects, as well as resistance to chemotherapy. There is increased spending on research to better understand the impact on a human’s health with exposure to BPA and other industrial chemicals used in other polycarbonate plastics.

Solutions to the plastic crisis

It's clearly a problem when waste is not disposed of correctly. So, what are the solutions? In Belize, NGOs are partnering with waste-management firms to advance an economical and self-sustaining recycling network. For instance, the Belize Tourism Industry Association (BTIA) is running the Recycle Network of Belize. With this, the organization is promoting a zero-waste approach and implementing circular economies in order to advance recycling and strengthen the tourism industry (the No. 1 industry in Belize).

At Oceana’s Reef Day, I also spoke with Tyronne, a representative of the Belize Solid Waste Management Authority, who was there promoting the importance of proper waste management. Tyronne told me his target audience was the youth that was present at the event because he feels it's especially critical to educate them on the importance of sustainable waste management. The youth are the future of Belize, Tyronne said, and he feels that recycling is a way to show pride in Belize by maintaining the environment in a healthier way.

What can people do in the U.S. to prevent the dispersal of waste? We can help support our own recycling market and keep recyclables out of the environment by ensuring that we are disposing waste properly according to our districts' policies. For communities in the United States that lack the infrastructure for proper recycling, the incredible nonprofit Recycling Partnership utilizes public-private partnerships to make recycling more accessible and easier to participate in. The organization also implements community-engagement programs and generates campaigns to boost recycling behaviors.

In all of this, education is key. We have to educate ourselves on how to correctly dispose of our garbage. We have to educate ourselves on the issues surrounding waste management and the obstacles preventing individuals from participating. We have to understand that there are consequences that can occur if we do not act, and such inaction can put our health and environment at risk.

There is hope because recycling programs are on the rise, along with the promotion of circular economies. More companies are implementing products designed from recyclables, for instance, the rise of eco-athleisure. So, let's not make waste other countries' problem. Let's continue to follow the mantra of reduce, reuse and recycle, but let's add re-buy.

Images courtesy of the author 

Kelsey Gaude is inspired by the cross sections of people and the environment and believes proper waste management is the future of the circular economy and improving environmental impacts. She will graduate with an M.A. in Sustainability from Wake Forest University in 2016.