Search

For the second year in a row, telecommunications company AT&T is selecting five education technology companies to participate in its six-month Aspire Accelerator program. The program is open to any ed-tech venture working to develop technology to support students’ education and career success. Throughout the duration of the program, ventures will receive financial, mentoring and business support. Final applications are due today, Feb. 5.

Aspire Accelerator was launched last year as part of AT&T’s $350 million commitment to improving student education and outcomes. Funds have also supported online education portals such as Udacity and Khan Academy.   

Last year’s inaugural class included five for- and not-for-profit organizations hailing from Baltimore, Washington, D.C, California, North Carolina and New York. Their products have reached more than 2 million students, 200,000 teachers and 4,500 schools across the country, according to a press release from AT&T.

LearnTrials, based in Raleigh, North Carolina, provides an ed-tech platform management system where verified educators post recommendations and best practices to give teachers and administrators tailored insights that improve instruction and budgets.

San Francisco-based mobile platform GradGuru, designed to increase community college retention, delivers notifications to students’ smart phones with reminders of academic and financial aid deadlines and provides encouragement and guidance through academic milestones.

Tools and technologies with a direct focus on building solutions for students at-risk of dropping out of school will be given special consideration for the program. Candidates will not need to relocate to participate.

“The Aspire Accelerator shows how we use the power of our network to build a better tomorrow,” said Nicole Anderson, assistant vice president of social innovation at AT&T. “The inaugural class’ results continue to amaze us and are being used by students, teachers and districts daily. I can’t wait to see the game-changing solutions this year’s class will bring.”

Advisors and collaborators to the program include notable names from leading education and technology companies comprised of DonorsChoose.org, Black Girls Code, EdSurge, Kapor Center for Social Impact, GSV Summit, Declara and Tipping Point Community.

The Aspire Accelerator’s customized six-month program includes the following resources for selected ventures:

• Aspire investment: A $100,000 AT&T investment and an additional $25,000 for each venture to cover costs of the program. For nonprofit companies, the investment will be a general contribution. They receive this in exchange for participating in the Aspire Accelerator and meeting certain requirements, including submitting impact measurements.

• Mentorship: Access to AT&T and external mentors from education and technology.

• National platform: Inclusion in the broader AT&T Aspire initiative, which is committed to driving innovation in education.

• Flexible location: Organizations can participate from where they are, without relocating.

“We need to welcome ideas from every corner that use technology in innovative ways to help students succeed,” said Nancy Poon Lue, executive director of GSV Summit. “The Aspire Accelerator’s unique focus on helping both for- and non-profit ed-tech ventures thrive is already having an impact. I’m excited to join the Board of Advisors and see what the 2016 class will achieve.”

The Aspire Accelerator application is open through Feb. 5. Selected ventures will begin May 2016. Candidates must complete their projects by the end of the program and demo their work in October. For additional information and to apply, visit the AT&T Aspire Accelerator website.

Images courtesy of AT&T

By Jeff Sutton

In spite of recent advances, the reality of life for many CSR and sustainability officers is still pretty disheartening. Many senior executives and key internal stakeholders still think of corporate social responsibility (CSR) as an afterthought – another box to check on the corporate checklist. One recent study found that over 71 percent of companies in the U.S define their CSR spending as in-kind donations and free product giveaways. Another 16 percent define it as cash donations, and the remaining 13 percent as employee volunteering and giving.

The challenge we see for CSR and sustainability teams is the need to sell embedded sustainability programs internally -- convincing their peers and leadership teams that the true benefit of corporate sustainability cannot be unlocked by well-intentioned, but siloed initiatives that focus only on philanthropy and volunteering.

When an organization’s sustainability strategy clearly connects to its mission, vision, ethics and long-term financial goals, it will protect a company’s reputation, drive innovation and employee engagement, satisfy consumers, attract and retain top talent, demonstrate compliance, and lead to market differentiation – all of which are key ingredients for long-term growth and profitability. All of this hinges on a shift in perspective: Sustainability is less about mitigating risk than it is about finding opportunity. And therein lies the rub.

Change isn't an easy process in any organization. But for a large business (with thousands of concerned stakeholders and a P&L with millions of dollars hanging in the balance), sustainability initiatives often don't seem like a sound investment. So, the challenge for many CSOs is getting their boards and corporate leadership to think beyond short-term quarterly and yearly earnings and realize the substantial value that sustainable thinking can have on mid- to long-term growth.

To move this conversation forward, here is a list of seven benefits organizations have seen after integrating sustainability into overall business strategy:

1. Increase in sales

Paul Polman, CEO of Unilever states, “We recognize, for the first time, and in pure monetary terms, that the cost of inaction is now far greater than the cost of action.” For giants like Unilever, the proof is in the bottom line. Of the more than 400 brands Unilever sells, those with the strongest sustainability credentials have seen sales grow at or near double-digit rates since 2012.

2. Innovate and differentiate

Embedded strategies help business rethink the way existing products are being created, opening up opportunity to boost corporate image, reduce material costs, gain an edge over competition, or carve out market share with an entirely new demographic of customer – all while reducing their impact on the environment. The success of Nike's Flyknit running shoes and Levi’s Water<Less jeans provide two two striking examples of innovation driven by sustainability.

3. Enhance and build reputation

Warren Buffett once said, "It takes 20 years to build a reputation and five minutes to ruin it." Although sustainability is as much about opportunity as it is about risk, organizations that can identify and communicate their greater brand purpose have historically outperformed their competition.

According to the 2015 Meaningful Brands Report from Havas Media, a meaningful brand has a 46 percent higher “share of wallet” (defined as how much a person is willing to spend on a particular product) than a less meaningful brand. This observation holds true on a macro scale too; the top 25 meaningful brands outperform the stock market by 133 percent.

4. Future-proofing

Good business practice demands that organizations understand and embrace the impacts and risks that external forces can have on their business – both today and in the future. (Will legislation affect raw material supplies? Will new environmental policies impact operational costs? Etc.)

For better or worse, the world is changing and evolving at an unprecedented pace. An embedded sustainability strategy will identify the material issues that impact your business so that you can get ahead of change. By fully embracing external challenges and looking for ways to reduce impact, sustainability strategy can move a business’s outlook for the future from reactive to proactive.

5. Recruit and retain

The 2016 Deloitte Millennial Survey reports that nearly 44 percent of millennials have turned down a job offer because the company's values did not match their own. Nearly half (49 percent) said they have rejected assignments at work because of conflicts with their ethics. And 56 percent have sworn to never work for specific companies because of the organizations' values.

It’s becoming abundantly clear that the next generation of talent are looking beyond financial compensation when choosing a job and seeking out organizations that understand their role in protecting our planet.

6. Cut costs

Whether it’s the reduction of materials in your manufacturing process or finding innovative ways to reduce energy and water consumption, businesses that have fully integrated sustainability have seen dramatic decreases in overall costs – both internally and externally. A business can find additional cost savings and impacts when similar reductions occur across their the supply chain.

7. Unify teams and align decision making

A clearly-defined strategy that highlights a comprehensive outline of the economic, social and environmental challenges impacting its future success can be used as a decision-making framework that unites business units – ensuring that individual strategies and tactics are aligned. This increases consistency of decision-making across the entire organization.

The takeaway

CSOs and CSR teams looking to push their strategies forward can take solace in knowing that they are not alone. Global leaders like Nike, Unilever, BMW and Adidas have lived through the experience and realization that, in order for business to truly integrate, all parties must realize that sustainability and profitability are not mutually exclusive. Thankfully, they also believe it’s in everyone’s best interest to share insights on the challenges they’ve have had to overcome along the way. Learn what you can from the companies that are further along on their journey, but realize that every business is unique and that no strategy is one-size-fits-all.

Image credit: Pixabay

Jeff Sutton helps businesses and organizations transform for the better with purposeful visions, strategies, and stories. As Vice President of thinkPARALLAX, he works alongside a team of strategists and creatives to cultivate knowledge, spread awareness, and create powerful, connections for businesses and organizations striving to make a positive impact. thinkPARALLAX is a culture driven creative communications consultancy committed to building brands with purpose. They work at the intersection of business strategy, corporate responsibility, and communication. Their focus is to create communication strategies, campaigns, and stories that influence behavior and drive positive change in the world and greater business community. 

How fun is makeup created by a 3-D printer?  Would you wear a bracelet that tracks energy usage to curb your carbon footprint?  Ever wonder how well the laborers who dug up your diamond are making a living?

Cool technology innovations and concerns for people and the planet are evolving the demands of consumers who can afford the most tony of lifestyle purchases. These consumers want the best, and they increasingly want to know they can trust brands to be socially conscious.  In a new report, the industry group Positive Luxury analyzes market forces and predicts trends in sustainability of the luxury industry.

Here are 10 sustainability trends gleaned from its 2016 market report titled Predictions for the Luxury Industry:

10. Sustainability is becoming more mainstream for business

Investors are asking about the social and environmental impacts of companies with longer-term views about their connections to profits.  Celebrities are touting good global citizenship along with lifestyle campaigns.  In the U.K., businesses must now publish an annual statement on slavery and human trafficking, a move designed to make them take responsibility for labor practices in their supply chains.

9. Carbon-cutting is finally en vogue

The global climate talks in Paris (COP21) moved forward the world's efforts to slow climate change, with a goal to keep the annual rise in temperature below 2 degrees Celsius.

Positive Luxury reports: "With the power of collective action to cut carbon emissions, the deal will have a direct effect on all businesses, especially luxury companies that focus on sustainability."  Saving energy and reducing pollution have become the norm for more businesses, and it's often expected of those seeking luxury products.

8. Climate change jeopardizes raw-materials sourcing

Sourcing high-quality raw materials is essential for businesses using everything from organic cotton to cashmere and silk.  Yet, rural and coastal communities around the globe are at risk from weather extremes that could mean droughts, floods or even loss of agricultural land.  Luxury brands must strategically plan for long-term sourcing.

7. Data and technology are powerful tools

Customers shopping on mobile devices and luxury brands using social media to interact are strong trends reflected in the report. Product development is rapidly changing due to technological advances. Also mentioned is how big data, when analyzed well, can help companies innovate. Prada and Nordstrom are developing dressing rooms with mirrors that double as interactive screens.

6. Community stores and community jobs matter

Despite growing electronic commerce, luxury brands that stand out are also supporting brick-and-mortar stores.  Positive Luxury reports that more global brands opened physical stores in 2015, often enriching local communities with jobs.

5. Millennials and Generation Xers expect social good

Researchers say millennials and Gen Xers, with their growing disposable incomes, are demanding more social responsibility from brands than earlier generations.  They care how the money they spend impacts workers and the environment.  Luxury brands that want their business must effectively communicate how social consciousness is ingrained with their products and services.

4. Growing economies mean more demand for luxury

It's noted that a leading economist for Goldman Sachs recognized growing economies early this century in Brazil, Russia, India and China.  Positive Luxury also cites growth potential in less prominent countries such as Indonesia, Sri Lanka, the Philippines, Bangladesh, Tanzania, Kenya, Zambia, Ethiopia, Colombia and Peru.  However, luxury spending seems to be slowing in China, along with its economy, despite that country being the top market for luxury consumer goods.

3. An omni-channel approach is essential

Luxury brands are finding new and innovative ways to reach consumers.  In addition to traditional brick-and-mortar, they are connecting with shoppers online.  Consumers increasingly expect to find the same selection both in person and online.

2. Consumers will spend on experiences, not just goods

Luxury spending doesn't have to be conspicuous consumption on goods.  Instead, millennials are noted for investing in quality experiences such as live entertainment.  Brands can score big as event hosts.  Consumers also enjoy using technology to connect before (buying tickets), during (connecting via social media) and after the live experience.

1. Luxury consumers want products that last

One of the most basic ways consumers understand sustainability is that it means products are less wasteful and last longer.  This requires high-quality materials and science-driven innovation.  The result can be old-fashioned durability of a product that won't need replacing anytime soon.

How can innovative, sustainable ideas inform the modern perception of luxury?  The cosmetics world will be forever changed by Grace Choi's introduction of a 3-D makeup printer that could let you choose custom colors on demand.  A wristband by Worldbeing made of recycled electrical components can keep track of carbon emissions to monitor your daily carbon footprint.  The De Beers Group of companies touts its Forevermark line of diamonds for their responsible sourcing.  The brand supports advancement of women in careers as miners, geologists and engineers in Africa.

Innovation in the luxury industry can wow consumers with the latest products, while mission-driven sustainability practices can earn customer loyalty.  In its conclusion, Positive Luxury restates, "In general, people want to align with brands that represent their values and care about the things they care about."

Positive Luxury issues participating brands the Butterfly Mark as a third-party certification of commitment to sustainability.

Image credit: Positive Luxury

This article is part of a series by students at Bard College's MBA in Sustainability. Principles of Sustainable Management is a foundational class for all Bard MBA students. It delivers ecological and social literacy, the frameworks and tools used by sustainability professionals, the business case for more responsible treatment of people and planet, systems thinking and integrated bottom line accounting.

By Katie Ellman

When New York City was incorporated into the five boroughs in 1898, Manhattan was the heart and business and economic center of the metropolis.

As mass transit and other infrastructure was built, all roads and subway lines led to midtown, often at the expense of better connecting neighborhoods within the outer boroughs and better connecting the outer boroughs to one another.

New York has always prided itself on its mass transit, but any New Yorker will bemoan the pitfalls of daily commuting: overcrowding, delays, litter and more. Despite a population that continues to grow, the city and state resist the New York City Metropolitan Transit Authority’s requests for more funding, and commutes become longer and less bearable.

In a city with expanding population and business centers, it’s important for the government to create new transportation routes to keep up with the rapidly changing economy.

How we used to get around

A hundred years ago, New Yorkers got around by bike, streetcar, ferry, and, in some places, by subway. The subway revolutionized transit in New York and ultimately expanded to each borough. By the 1950s bus lines replaced streetcar lines, cars took over the streets and cycling, as a mode of commuting, was deemed unsafe.

The rent is too damn high! Soon only the oligarchs and billionaires will be able to live in Manhattan. Increasingly, the people that make the city great are living outside of Manhattan and even moving beyond the furthest reaches of the city limits.

With industries and smaller businesses no longer able to afford Manhattan rents, business centers and hubs of innovation are now located in Sunset Park, Brooklyn, Long Island City, Queens and the South Bronx.

Unfortunately, mass transit options have not kept up with the changing city. It makes good business sense to capitalize on connecting us to one another without adding additional cars, or buses, to our already congested roads.

Transportation alternatives

Bike lanes are a low cost way to allow people who do not live near mass transit to get from point a to point b. It has been shown that bike lanes calm traffic and that bike parking and bike share appeal to local businesses because they enable additional customer access and sales.

As a city of islands, it makes sense to utilize our blue highway in further moving our residents around. The City has an ambitious plan to begin East River ferry service to the South Bronx, Astoria, Queens, Roosevelt Island, Red Hook, Brooklyn, Rockaway and elsewhere by 2017. The program will complement existing ferry routes and restore ferry service to the Hallets Cove Area of Astoria, Queens, which ironically lost its ferry in 1936 when the Triborough Bridge opened. The ferry will cost the same as a ride on the subway and will serve communities that already have dense populations, are far from the subway and slated for large population increases because of proposed residential development.

Delays on the Second Avenue subway and the exorbitant cost of building additional subway lines show that the idea of expanding the subway network in New York is a pipe dream. Adding tracks at street level may be a cheaper and better way to go. The idea for a new light rail would utilize tracks embedded on existing streets the same way streetcars used to move people around. There is a proposal to add a light rail line connecting Sunset Park in Brooklyn to Astoria in Queens.

To keep up with a rapidly changing city economy and population, the relative low cost of expanded ferry service, bike lanes and a light rail network is a smart investment. These new networks would shorten commute times and fill the need of locals and how New Yorkers move around now; where they work, play and spend their money.

Image credit: Pixabay

Katie Ellman is a student in Bard College's MBA in Sustainability program.

Last year, we saw Etsy become the largest certified B Corp to go public. Now, get ready for the first public stock offering by a chartered Benefit Corporation. This ain't no friendly neighborhood organic coffee roaster, either. Laureate Education promises to operate as a triple-bottom-line business, but this is a much bigger, more complicated deal.

Laureate is the world's largest for-profit operator of online and campus-based higher education. It owns, controls or manages 88 institutions that enroll more than 1 million students, 90 percent of whom live outside the United States. It has been growing rapidly, and in 2014 its revenues exceeded $4.4 billion. It's a 16-year-old company, but it announced its new charter as a Delaware Benefit Corporation just four months ago, on the same day it registered for its IPO.

Laureate's current owners aren't the kind of folks you'll find at a typical Benefit Corp meet-up. Kohlberg Kravis Roberts (KKR), one of the world’s largest private equity firms, leads a group of investors who control Laureate’s shares through a holding company. Point72, another venture capital behemoth, owns a big chunk. So does the International Finance Corp., which is the private-sector arm of the World Bank.

KKR's leaders are Henry Kravis and his cousin, George R. Roberts, who gained fame for their scorched-earth takeover of Nabisco in the late 1980s. They're old-school corporate raiders. Now, they own a Benefit Corporation, and that could be a big deal.

Laureate registered as a Benefit Corporation so IPO investors will know that it takes its social mission seriously, according to its founder and CEO, Doug Becker.

"We recognize that some investors in public companies are highly focused on short-term results," Becker wrote in the company's prospectus, "and we hope that it is very clear to them that this is not our approach. With the benefit of a long-term view, we will balance the needs of stockholders with the needs of students, employees and communities in which we operate, and we believe that this approach will deliver the best results for our investors."

SEC laws prohibit Becker and KKR from talking about the IPO. But others are taking notice. "KKR could be just the tip of the iceberg," says Luke Stephan, a partner at Keene Advisors in Newton, Massachusetts, a small firm that specializes in advising business owners who are selling their companies. Many Keene clients bring their social consciences to their businesses, and Keene itself is pursuing Benefit Corp certification.

"If the Laureate IPO is successful, it will provide a roadmap for institutional investors, family offices and individual investors who want to invest capital in businesses that generate a good return and make valuable contributions to society at large," Stephan wrote. "And it will provide a strong counterpoint to skeptics that believe that businesses cannot access institutional capital unless they focus exclusively on maximizing value for shareholders."

"Laureate is a real validation of the value side of the equation," says Rick Alexander, legal advisor to B Lab, the nonprofit behind B Corp certification -- not to be confused with Benefit Corps. "About $6 trillion in investment funds are earmarked for social impact in some way. That's a huge target. But benefit corporations are a new idea, and a lot of investment professionals are not convinced that they will give a good return. Many of them just don't know about us.

"KKR is a high-profile company, so the Laureate IPO could convince a lot of people that they're safe to invest in. The essence of the idea is that by serving the interests of stakeholders as well as shareholders, you create value that companies focused only on their shareholders do not create."

Switching its status might also help Laureate answer the many critics of for-profit higher education. According to a 2012 US Senate committee report that examined 30 companies, including Laureate, the sector spent an average of 41 percent of its revenue on marketing, advertising, recruiting and admissions, and profit distribution. They spent just 18 percent on instruction. The report argues that making federal grants and loans to students at for-profit colleges is a bad deal, both for the students and the government.

Alumni of Walden University, an online degree program owned by Laureate serving mostly graduate students in the United States, have accumulated the second-highest amount of federal loans of any school in the country, according to a 2014 study by the Brookings Institution. And only 44 percent of its undergraduates had started to repay their loans three years after leaving the school, a level far below the national average.

Laureate is not the first for-profit school to become a benefit corporation. But it is the first to sign up for B Lab's rigorous social audit program, which it passed in 2015. It also participates in B Lab's Higher Education Standards Working Group. So, is Laureate using B Lab to clean up its image while it prepares to go public? Sure. And is that a bad thing? Only if it doesn't walk the talk.

Image credit: Flickr/herval

Note: This post was updated on Feb. 8 to clarify reader questions about Etsy's IPO. While Etsy was a certified B Corporation at the time of its IPO, it is not a chartered Benefit Corporation -- at least not yet. 

 

Test tube meat. Laboratory meat. Cultured meat. The $330,000 hamburger cultivated in a Petri dish. The very thought makes many of us squeamish in an era where many consumers are already creeped out by genetically modified crops and of course, GMO meat. But the current alternative is one that is a brutal business. Billions of animals are butchered annually to meet the global demand for animal protein, which is surging in developing countries as dishes resembling what’s readily available in the West are seen as progress. Some companies, such as Beyond Meat, are trying to replicate the taste of chicken (and are doing a solid job), while one startup has dabbled with a bloody, oozing burger that is vegetable-based.

The reality, however, is that many humans crave that scent and taste for grilled meat. To that end, yet another alternative meat startup, Memphis Meats, is doubling down on meat products cultivated in the laboratory instead of the factory farm.

Earlier this week, Memphis Meats scored $2 million in seed funding, which in part has allowed the company to officially launch today in San Francisco. Pairing Silicon Valley technology with the reputation of Memphis’ famous barbecue, the company insists it can bring its cultured meat products to market within five years.

The company’s co-founders include its CEO, Uma Valeti, a cardiologist based in Minnesota; Nicholas Genovese, a stem cell biologist; and Will Clem, a biomedical engineer who runs a chain of barbecue restaurants in the Memphis area.

Memphis Meats has already touted its success creating the “world’s first cultured meatball,” and has developed meat out of pig, chicken and beef cells. Eventually the company will create sausages and other meat products that will meld cultured meat with recipes developed by famous chefs.

One of the company’s largest supporters is the Good Food Institute, a non-profit that is dedicated to disrupting the global food supply chain. Besides reducing the number of animals slaughtered annually—a number that will only surge as the world’s population reaches 9 billion by 2050—the organization touts cultured meat as a more sustainable alternative. The Good Food Institute claims it takes 23 calories of feed to create one calorie of beef; Memphis Meats insists it can produce one calorie of meat from only three “inputs,” as in the water and energy required to keep such laboratories operating.

The company, as would any competitor in this space, faces an uphill climb. First, consumers will have to be educated as the “ick” factor will be tough barrier to overcome. And one study has suggested that lab-produced meat may actually require more energy than farmed meat, so those statistics need to be sorted. In fairness, however, the reduction in methane and other greenhouse gasses, plus the fact that less animals would be slaughtered, together provide a powerful argument for laboratory raised meat. Many global organizations have long pointed out that the global meat industry has a larger environmental impact than that of the world’s transportation sector. With more consumers open to new alternatives to conventionally farmed meat, the next decade could very well see a revolution in food production that only a few years ago seemed more science fiction than based on actual science.

Image credit: Good Food Institute

By Alice Williams

Women are good for business and particularly executive-level women: A study from global accounting firm Grant Thornton found that companies with at least one female executive board member performed better than those with male-only boards. Women play a major role in enabling better decision making at companies, creating sustainable organizations and increasing annual company philanthropic contributions.

Women and corporate social responsibility (CSR) go hand-in-hand. CSR is a solid long-term strategic practice that many of the world’s most successful companies have embraced. Companies with a strong commitment to CSR have been shown to have more satisfied customers which can lead to brand loyalty. While numerous organizations have shown a directional shift towards implementing CSR practices, applying meaningful change takes effort and it can be easy for businesses to take a superficial approach and face being labelled as greenwashing or ‘ethics-washing.’

Why women are crucial to CSR

Devin D. Thorpe, New Media Journalist and “champion of social good”, sees women as the real changemakers in corporate America. He points to the example of Nancy Mahon who is the Senior Vice President, Global Philanthropy and Corporate Citizenship for Estée Lauder.

Estée Lauder owns a variety of brands, including MAC cosmetics, and have raised over half a billion dollars for the MAC AIDS fund. Thorpe states that their annual rate of funding is now approximately $50 millions dollars, which make both Estée Lauder and Nancy Mahon real drivers of change in the global fight against AIDS. Their success is echoed through the collaboration of major celebrities, such as Lady Gaga and Rihanna, who act as spokesperson virtually for free. Estée Lauder, MAC Cosmetics and their distributors have made a real commitment to making a difference and this is what separates genuine CSR programs from ones that are seen as greenwashing or ethicswashing.

How women can drive meaningful CSR

Eighty-six percent of American females stated that they would not work for a firm with a poor CSR reputation. While this has great implications on firms without a CSR vision, women should be encouraged to help drive change from within. Many CSR policies fail because they are not connected in a holistic fashion, and communication barriers arise. Women, who are typically good communicators and capable of empathy, can aid in the quest to create a CSR vision that is at the core of a business’s goals and strategies.

The task of creating a meaningful CSR program is demanding yet essential. It is imperative that both company executives and HR personnel are committed to CSR so that tangible action can be taken. It is not enough to simply claim that CSR is “connected to the core” of their business strategy, the company must be able to show this through physical means, which could include the appointment of a Chief Diversity Officer, support of charities that match their CSR values and etcetera.

What is next for women in CSR?

The future is bright for women in CSR – we continue to see collaboration around CSR programs, with initiatives stemming from Estée Lauder’s global fight against AIDS to Intel’s ‘Diversity in Technology’ initiative. Women should be encouraged to connect their CSR policies not only with charities that impact true change, but initiatives such as Intel’s, which work to invest in women and minority owned companies. It may seem cumbersome to develop programs without a quick return on investment that involve long-term investment, but initiatives such as this are exactly what companies need to turn their attention towards.

Women are making waves in the world of business, but companies need to ensure that they do not lose sight of their core values to direct CSR polices that are conducive to real change. To create genuine change that moves past the superficial, companies must understand the value of an innovative and collaborative company culture. Only then can companies move beyond the superficial.

Image credit: Flickr/WOCinTech Chat

Alice Williams is a communications professional with an MA in Communication Studies. In her spare time, she freelances and blogs about health and wellness over at www.honestlyfitness.com.

By Himani Phadke

At the COP21 climate conference in Paris, there was much debate about financing flows needed from developed to developing countries for climate mitigation and adaptation. It is clear, however, that if the transition to a low-carbon, resilient economy is to succeed, private-sector investments will play an important role. Private-sector investments now constitute up to 86 percent of global investment and financial flows, according to the U.N. Framework Convention on Climate Change.

Despite this essential role, investors in capital markets at the moment are operating somewhat blindly on the investment opportunities in these areas. They are also unable to assess systemic risks from climate change to their investment returns.

Ultimately, what they need is better information.

Financing change

For financial markets to direct capital toward climate change mitigation and adaptation, investors need to understand impacts from climate change on the companies in which they invest. These include not only the physical manifestations of climate change, but also the response of governments and populations to the issue. This response is shaping up in the form of disparate greenhouse gas (GHG) regulations and consumer demand shifts.

With better information, financial institutions need to integrate considerations of climate change into their core business. Fully factoring in impacts of GHG regulations in their credit-risk analyses, banks may redirect their loans from GHG-intensive activities to those that contribute to mitigation, such as renewable energy projects. Similarly, asset owners and managers can diversify their portfolios using information on climate risks and opportunities. Asset owners may also benefit from engaging with companies to improve performance on emissions reduction.

Indeed, recent studies have shown that ignoring climate-related impacts in financing decisions could have serious negative impacts on the financial sector itself. Lenders to carbon-intensive activities or to activities impacted physically due to climate change could face asset write-downs. Asset owners, including insurance companies, could face acute or chronic reduction in investment returns or asset impairment. This would impact the incentive fees -- and therefore the revenues -- of asset managers.

According to a 2015 study by Mercer, depending on the climate scenario, average annual returns from the coal industry, for example, could be lowered by between 18 percent and 74 percent over the next 35 years, with more pronounced effects in the coming decade. On the other hand, investments in the renewables sector could have average annual returns increasing by between 6 percent and 54 percent over 35 years.

Industry-specific implications

The impacts that investors face stem from similar risks and opportunities faced by companies in their investment portfolios. These include asset and operational impacts. As the Mercer study and the Sustainability Accounting Standards Board’s (SASB) research suggest, however, the severity, timing and manifestation of these impacts can vary markedly depending on the industry.

For large, direct GHG emitters, such as electricity generation and transportation, operational impacts arise from the cost of GHG regulations and fossil fuel price volatility. On the other hand, manufacturers of technology hardware, automobiles and other energy-consuming products are seeing impacts on revenues. These are occurring through shifts in consumer preferences and energy-efficiency standards.

Some industries, such as agriculture and real estate, are directly vulnerable to physical changes in the environment resulting from climate change. Companies in these industries may face losses in output or reductions in asset value without appropriate adaptation strategies. According to one estimate, without adaptation, counties in the U.S. Midwest and South could face more than a 10 percent decline in crop yields over the next five to 25 years if farmers continue to sow corn, wheat, soy and cotton.

Industry-specific corporate disclosures on climate risk would then be a win-win for investors and companies. Financial institutions could integrate such information in their investment strategies and offerings, to manage climate impacts better. The performance of financial institutions in this regard would not only protect the value of their investments and their revenues, but could also provide critical funding for mitigation and adaptation.

The path forward

A key announcement from COP21 was the appointment of Michael Bloomberg, former New York City mayor and board chair at SASB, as head of a task force on climate change risk disclosure by companies. This industry-led task force was initiated by the Financial Stability Board, an international body entrusted with the stability of global financial markets.

Corporate disclosure of climate risks and opportunities is an essential policy complement to global carbon pricing signals. Together, climate disclosures and a price on carbon would facilitate reductions in GHGs and climate adaptation at the lowest cost.

From a policy perspective, better climate disclosures could go a long way by themselves toward desired climate goals, with or without a global carbon price. However, a global, or at least regional, carbon price-signal is important for the success of climate goals, as it would enable companies and investors to better plan for operational impacts. The price-signal can be in the form of a carbon tax or carbon credit price in an emissions-trading system. The landmark COP21 agreement, in which representatives from more than 180 countries submitted targets for lowering GHG emissions, sets the stage for such a signal to emerge. Such a signal would reduce business uncertainty, allowing companies in certain industries to obtain capital at a more reasonable cost than they would have otherwise.

This would still leave unknowns on financial impacts from physical changes to the environment. Corporate transparency on performance in this regard could help improve aggregate information on economy-wide impacts over time, enabling further policy action.

The establishment of a climate disclosure task force, then, is a crucial step in the right direction. Financial institutions can be agents for positive climate outcomes. At the same time, the climate risks they face could create systemic impacts. The focus on information relevant to investors is therefore welcome.

Image credit: Pixabay

Himani Phadke leads SASB’s standards-setting activities as Interim Head of its Standards Setting Organization. Since joining SASB in 2012, Himani has been managing SASB’s research on sustainability issues and their potential to affect corporate value. Himani has previous experience in financial consulting at LECG, London, and policy development at the UK Treasury. At the Treasury, she developed policy proposals for investment banking reform, with legislation based on these proposals being subsequently adopted by the UK Parliament. At LECG, Himani conducted financial analysis for consulting on business and regulatory issues in areas of valuation, litigation, transfer pricing, and climate change. Himani co-founded a renewable energy social enterprise, REwiRE, focused on scaling up energy access solutions for emerging markets. Himani has an MA in International Policy—Energy and Environment, from Stanford University, an MSc in Development Economics from Oxford University (UK) and a BA in Economics and Statistics from Mumbai University (India).

By Allison Engel

The U.S. stole the top spot for women entrepreneurship in the 2015 Global Women Entrepreneur Leaders Scorecard, but that doesn’t mean it always offers a supportive environment for women entrepreneurs.

To reach this conclusion, 31 countries’ business environments, gendered access issues, leadership and rights opportunities, pipelines for entrepreneurship, and potential entrepreneur leaders were compared and assigned a percentage score and ranking.

However, the results weren’t pretty. In fact, the top nine highest-performing countries received overall “underperforming” ratings — failing to meet even half of the five targets. The No. 1 score of 71 percent really means the U.S. is average in propelling female entrepreneurship.

What’s even more alarming is that while the report sourced data from the World Bank Group and the Global Entrepreneurship Monitor, it also revealed an alarming lack of research on women in the workplace. In a business environment where data informs virtually every decision leaders make, how can we improve what we don’t measure? And make no mistake: Improvement is imperative.

Regardless of their countries’ scores, all leaders stand to benefit from recognizing and empowering women. In doing so, they’ll reap the gender dividend and ripple positive change throughout their communities. But to amplify the benefits, business leaders must think past policies that simply combat discrimination to formulate and execute on strategies meant to integrate women at all levels.

Luckily, there are steps business leaders can take to promote a more inclusive business landscape:

1. Start from within

You can crack the status quo by asking women employees what they need and supporting them through resource groups. By creating flexible workplace environments, you can also prevent women from dropping out mid-career.

These ecosystems won’t build themselves. Business leaders need to work with local chambers of commerce and building developers to create central hubs where communities can flock to collaborate, network, and share ideas. These hubs can also serve as platforms for successful entrepreneurs to mentor, infuse capital, and start new businesses.

Just look at the PayPal Mafia, which has fortified the tech industry in Silicon Valley. After PayPal was acquired by eBay in 2002, its founders started searching for new promising businesses to invest in and grow. A few of those companies just happened to be Tesla Motors, LinkedIn, and YouTube.

2. Invest in women entrepreneurship

One category in particular exposed some major areas for improvement: the pipeline for entrepreneurship. This segment awarded countries where women are engaging in startups at the same rate as men and where higher percentages of women know entrepreneurs, identify business opportunities, and believe they have the skills to start businesses. In this category, Nigeria, Ghana, and Jamaica earned the top three spots, respectively, while the U.S. came in at No. 17.

Research shows that people with ties to other entrepreneurs are more likely to become entrepreneurs themselves. However, in all 31 countries included in the survey, women are significantly less likely to know entrepreneurs. In 90 percent of participating countries, women are also significantly less likely to feel like they have the skills to start businesses.

To change this reality, it’s important for leaders to invest time and resources in supporting women entrepreneurship.

To diversify the infamously male-dominated tech industry, Intel Capital launched a $125 million fund to support startups run by women and minorities. While that level of funding isn’t feasible for every company, you can still help move the needle by supporting inclusion programs such as Men Advocating Real Change or #EntrepreneursUnite, a worldwide movement that aims to rally support from entrepreneurs, private sector leaders, and others. The movement recently had its first big win with the ratification of the United Nations’ Sustainable Development Goal 8.

3. Open a dialogue across company lines

Engaging your team in discussions about workplace equality is important, but it only skims the surface. Leaders must collaborate across verticals and company lines to shatter the barriers impeding women entrepreneurs. They should start core teams where everyone arrives at a mutual objective and works together to create a 360-degree plan that checks the box across the organization.

The HeForShe movement invites diverse perspectives to speak openly about the challenges women face in the workplace and to collaborate in combatting them. By opening the floor to celebrity mouthpieces such as Emma Watson, this organization has gained incredible momentum.

4. Seek out women-owned businesses and suppliers

As a business leader, you have the power to back women-owned businesses in the supply chain and beyond. The same people or partners tend to inherit the same contracts time and again. Break the chain by looking critically at who you’re grandfathering in, and seek out women-owned suppliers.

Whether you’re looking for new investment opportunities or simply a way to connect with women-owned businesses, WEConnect International is a great resource. It identifies, educates, registers, and certifies companies based outside of the U.S. that are at least 51 percent owned, managed, and controlled by women and connects them with multinational corporate buyers.

By making a concerted effort to employ and invest in women-owned businesses, business leaders can perpetuate the small business life cycle. At Dell, we spend more than $4 billion with our small and diverse suppliers, including Cathi Coan, CEO of Techway Services. We went into business when she was just starting, and now, Techway employs more than 100 people and continues to grow.

Although the scorecard exposed some grave discrepancies in global entrepreneurship, it’s not inherently negative. It highlights the need to break the status quo and forge a more inclusive path and, hopefully, inspires governments and private companies to take charge. Countries need to stay competitive in the global economy, and the only way to get ahead is to empower women entrepreneurs.

Image credit: Pixabay

Allison Conkright Engel leads global marketing and operations for Dell for Entrepreneurs. Prior to Dell, Allison worked for various startups, leading their Southwest expansion efforts. She has more than 15 years of experience in media and marketing and has worked for several iconic brands. 

If anyone needs convincing of the value of ESOS, we have the evidence, writes Thomas Whiffen, Senior Energy Specialist, National Energy Foundation.

Over the course of the first tranche of ESOS compliance, we worked with a number of organisations and identified hundreds of energy-saving opportunities, the potential value of which was millions of pounds of savings.

Using half-hourly energy data, utility bills, finance records and mileage claims, we identified energy savings totalling 29 GWh per year, the equivalent of £12.5 million per year off fuel and utility bills. One particular situation we experienced among our site visits and examination of various plant rooms across the country was at a commercial site where they had an onsite combined heat and power plant. Although they were using the power, they were dumping the heat into the atmosphere, only to use lots of energy heating hot water for their industrial washing facility. On top of that, there was no space heating in their centre during winter. The solution was to re-engineer the systems to produce space heating during the winter and deliver low-carbon pre-heating for the industrial washing facility. Together, these two solutions are set to save £40,000 and 1.7 GWh per year.

Our experience and top 12 insights:
1. There was positive engagement from the organisations we audited.
2. The ESOS process improved energy-use record keeping.
3. ESOS also improved energy awareness, and improving the visibility of their energy consumption helped organisations identify energy-saving opportunities.
4. Major energy-saving opportunities were identified through behaviour change initiatives in both buildings and transport – in the case of the latter through reducing the number of miles driven and incentivising improved driving techniques.
5. Major energy efficiency improvements were achieved through modernising the technology used to monitor and control energy, especially in areas of high energy demand.
6. There was scope for energy management behaviour to be improved in all the buildings we audited.
7. Likewise, there was room for all organisations to improve the support they provided to their staff through awareness and training initiatives.
8. Lighting upgrades and boiler replacements reduced lighting and heating demand by 25-50%.
9. Those organisations using fuel card systems were able to provide energy consumption data for their transport systems more easily, and the availability of driver fuel-use data made it easier to undertake behaviour-change programmes.
10. The true benefit and power of ESOS compliance will be in the number and value of energy saving opportunities that are actually implemented.
11. Over the next few months, we’ll be consulting with our clients, revisiting our original audits and working on strategies for implementing the savings we identified. We’ll also consider doing similar work for other ESOS-compliant organisations.
12. The next stage will be to measure the savings and, finally, to prove the business case.

Looking ahead, the National Energy Foundation is leading on a new standard (ISO 17747: Determination of Energy Savings in Organizations) which is now at Final Draft International Standard stage. Once approved, it will provide us with a standardised and an internationally recognised method for measuring energy savings, and give us the ability for improved reporting to our clients.

 

thomas.whiffen@nef.org.uk