Sixth Annual Businesswomen’s Sustainability Leadership Summit

Posted on December 6, 2009 by wnsfwriter

New Dynamics of Sustainability Leadership: Changing Roles, Fresh Opportunities
At The Institute for International Education, United Nations Plaza

Thank you to our sponsors: The Coca-Cola Company, DuPont, McGraw-Hill Companies, Pfizer, PricewaterhouseCoopers, Siemens

Thank you also to Alexandra Marchosky and Framework: CR for serving as rapporteur.

Four Summit Themes:

  • Changing Dynamics: How the sustainability landscape has changed in the last year and the implications for business.
  • Fresh Opportunity: New ways to broaden the scope and influence of sustainability in business.
  • Global Perspective: How business can accelerate sustainability through global operations and networks.
  • New Roles: New partnerships that are emerging because of government attention to sustainability.

Introduction

WNSF Chair Kathy Robb opened the Summit. There are “instances when a new ideamarks an unmistakable and instantaneous change from everything that has come before,” she explained. One instance was the 1972 ”Blue Marble” photo of the Earth. “In it, the Earth looks like a blue pebble floating in space – beautiful and fragile. There, for the first time, we saw our Earth, as a single, self-contained, indivisible whole, with no political boundaries… . We knew, the minute we saw it, that whatever happens to this planet in the future will happen to all of us together.” In the future, “sustainability as a dynamic concept implemented in all its depth,” may well prove to be another bright line that marks a change in the way we see ourselves, she suggested.

WNSF Executive Director Ann Goodman, PhD then briefly spoke about the political and economic sea changes of the past year. In this shifting landscape, there is increasing policy interest in, and public awareness of and pressure on business to be truly sustainable.

WNSF has always focused on the nexus of three powerful influences: women, business, and sustainability. There is now increasing empirical evidence that women play a significant role in bolstering sustainability efforts and that these efforts have a positive impact on business and the larger worlds. In fact, a growing number of initiatives are measuring company performance based on principles and “metrics” that examine the links between women and sustainability in business. (WNSF plans to host a session on these metrics initiatives soon. Please check back or sign up for the WNSF mailing list for details.)

Businesswomen’s Sustainability Leadership Award Winner:

Linda Fisher, Chief Sustainability Officer, DuPont

Dr. Goodman introduced this year’s winner, Linda Fisher, who has played a major role in helping DuPont achieve sustainable growth. Before joining DuPont in 2004, Ms. Fisher served in leadership positions in industry and government. As a former Deputy Administrator at the EPA, Ms. Fisher has been able to help DuPont build relationships and credibility with NGOs and government offices.

By 2006, Ms. Fisher had helped DuPont develop watershed sustainability goals that help its customers improve their sustainability performance. Putting customer needs first has helped DuPont integrate sustainability into its core business practices.

The award itself was provided by Rivanna Designs of Charlottesville, Virginia. It was designed by a refugee woman, Kristina Constantine, specifically for WNSF and is made of FSC-certified wood.

Ms. Fisher’s Keynote Address

Themes in Ms. Fisher’s speech:

  • Real change is necessary if we are going to save the world and make it viable for the billions living here.
  • Businesses can’t succeed through green-washing; we must integrate sustainability into core business practices.
  • Partnering with non-governmental organizations is a key part of the process.
  • Good, clear government regulation is another cornerstone.

Ms. Fisher’s address highlighted that working in sustainability for the past 25 years has been dynamic, interesting and challenging; she’s hopeful that there will be even more robust sustainability practices 25 years from today.

When Ms. Fisher graduated from law school and began working at the Environmental Protection Agency, her older brother, a finance attorney, dismissively noted, “The environment. Well that will be a very nice boutique practice.” We all now know how wrong her brother was. However, Linda is the first to acknowledge that 25 years ago, it was unfathomable that businesses would ask for regulations, seek partnerships with environmental advocates, and ask stakeholders for input on environmental solutions. Twenty-five years ago, companies were fighting Superfund clean-up standards and liability; environmental advocates seemed to not understand business needs at all; and stakeholder input was unheard of. A lot has changed.

Is there green-washing? Yes and no. Some companies are guilty of green-washing; but many companies are making real, substantive changes and genuinely debating what sustainability means and how to move towards it. Leading companies realize this is not a fad; sustainability is here to stay.

One proof of the change in attitude and commitment is that the conversation about sustainability is no longer occurring only in the legal and health and safety departments. It is now part of the conversation about the marketplace and growth. It has moved from a fringe issue to part of core business operations. The public, clients, and government are demanding healthy, safe, and sustainable products. These demands are fostering market-driven considerations of the energy used by products, how to remove toxins from them, and the volume of material waste created through production and use. The public (not government) is doing much of the pushing and monitoring. Ms. Fisher believes this public pressure is more effective than government regulation.

Non-Governmental Associations Have Learned Business. In the 1980’s, business people wished that environmentalists understood business. Now they do, and they are using the marketplace to push for change. 1) NGOs organize boycotts to create market pressure. This often leads companies to make quick, global, lasting changes. 2) NGOs are forming partnerships with businesses. Business clients want products that are more sustainable, long-lasting, and made from renewable resources, so DuPont is changing its products and services. Working with NGOs can help it meet these goals. In this way, DuPont grows markets through sustainability, in addition to reducing its own risk.

Economic success follows from being sustainable. Marketplace requests are much more transformative than government regulation.

Leading businesses know what their customers want before their customers do. In sustainability, that means being the first to market with products and services that address energy, water, and food issues, and in this way both create and respond to growing consumer awareness of the problems.

Government’s Role. We need regulations. The marketplace and corporations are imperfect. They need the pressure and minimal performance standards regulation provides. Fair, cost-effective regulations establish a level playing-field, create markets for innovative products, and guarantee safety.

Companies that need 5-10 years for research and development also need the certainty regulations provide. This is why DuPont is partnering with NGOs to advocate for regulations regarding greenhouse emissions and nanotechnology.

The Bottom Line: We cannot succeed through green-washing; we must do much more than not pollute in order to feed, clothe, and shelter a growing global middle class. Businesses must make real changes, with the help of NGO partners and good government regulations.

Questions from the audience

  • What about safety, human rights, and labor, which are also part of creating sustainable organizations?
    DuPont’s first focus was on reducing emissions and making its products less toxic, because it is a chemicals company. Now it is also focusing on water. The company has human rights and animal rights policies, but this is not an area of focus for the company because it does not have a lot of employees in developing countries.
  • What kind of leadership is needed for companies to begin their sustainability journey?
    DuPont started addressing sustainability issues well before Ms. Fisher arrived. It first began addressing these issues in the 1980’s, under the leadership of then CEO Edgar Woolard Jr.; each successive CEO has built on the work of his predecessor. When Linda arrived, DuPont’s sustainability efforts were focused inward and on doing less bad. Now the focus has evolved to doing good and providing better products for clients. Now it is a business conversation–Where are the market opportunities? That shift in focus makes a big difference; sustainability isn’t just about reducing its own footprint and risks; it’s also a way to develop market share.
  • What language do you use to engage senior executives? How do you measure the market size of opportunities?
    DuPont uses 11 criteria to evaluate new products; the new product must beat current offerings by 40% on 1 criterion and at least match existing products on the remaining 10 criteria.
    There is an on-going discussion at DuPont about how to use the “green” and “sustainable” labels.
    Ms. Fisher doesn’t tell the businesses the size of the market; the businesses know their market. Instead, she works to help the businesses understand the opportunities, externalities, and risks. And, realistically, some businesses will never be green; DuPont is not going to stretch “green” to operations where it doesn’t fit. For those businesses, DuPont focuses on reducing harm and risks.
  • What about emissions cap and trade regimens?
    At DuPont, they are debating where in the company cap and trade will be housed. DuPont has already done a lot of trading on the Chicago Climate Exchange because of its refrigerant reductions. Linda’s office does audits to ensure the reductions are real; the division that reduces its use of refrigerants gets the money earned from the Exchange; and the CFO is also involved. Current in-house discussions are focused on whether trades should be made internally before turning to external markets. There will be more CEO involvement to develop this business strategy.
    Every part of DuPont is affected by higher energy prices. Everyone benefits from energy efficiency. Twenty to thirty plants are covered by a cap and trade Bill being considered by the House. These plants will need allocations; some will receive free allocations, then there are the rest. The company has to determine how much to invest in reductions and how much to spend on off-sets. The House Bill has helped to crystallize what life under greenhouse gas emissions will look like; despite recent efforts, DuPont still releases a lot of emissions. But, Ms. Fisher reminds them, higher energy prices are great for DuPont’s solar products!

Strategic Dialogue: New Dynamics of Sustainability Leadership

Following Linda’s address, conference attendees formed groups of four to five people and discussed one of the four summit topics noted above. At the conclusion of the dialogues, the plenary group reconvened and individuals shared discussion highlights.

Please click here to read a sample of the takeaways from the café dialogues.

How has the sustainability landscape changed in the last year and what are the implications for business?

  • The economic challenges of the past year have allowed some sustainability efforts to grow as these departments have gained budget and momentum, while others have had their resources limited as their companies focus on basics.
  • Herman Miller is not hiding what it’s doing; it’s sharing its information to bring other manufacturers along with it on the path to sustainability. Are there new ways to broaden the scope and influence of sustainability in business today?
  • Employees are the gateways to implementing change, but they have to believe the leadership really understands and supports the new platforms.
  • Make sustainability language understandable to everyone.
  • Use common vocabulary and standards. Broaden the “footprint” idea to include water, food, etc.

How can business accelerate sustainability through global operations and networks?

  • One size does not fit all. Solutions have to be tailored to each location.
  • Pilot projects are great; one group or product line tries something new, while the rest of the company watches and learns (this monitoring also creates positive pressure on the pilot group).
  • Use communication channels to get employee buy-in and their resulting efforts and loyalty.
  • The networks have to include NGOs, trade associations, and other businesses, as well as local communities and employees.

What new partnerships are emerging through government attention to sustainability?

  • Competitors are working together. For example, Sony and its competitors now ship products together in order to save money and resources; insurance companies and property managers are also working together to protect their shared investments.
  • A focus on building infrastructure and communications.
  • Stimulus funding is being used for clean technology.
  • Consider how the government can work with NGOs and businesses, and how new collaborations can help create new processes and materials.

Panel Dialogue

Shannon Schuyler, Americas Corporate Responsibility Leader, PricewaterhouseCoopers moderated a dialogue with a distinguished panel. Ms. Schuyler began by asking the panelists to share their insights on the four conference themes.
Hye-Won Choi, Senior Vice President, Head of Corporate Governance, TIAA-CREF, and Co-Chair, SEC Investor Advisory Committee.
Beth Keck, Sr. Director for Sustainability and Strategy, International Sustainability & Strategy, Walmart Stores.
Dr. Ponni Subbiah, VP of Global Access Strategy, Pfizer Inc.
Dr. Sharon Nunes, Vice President, Strategic Growth Initiatives – IBM Green Innovations.

  • Changing Dynamics: How the sustainability landscape has changed in the last year and what the implications are for business.

Dr. Nunes: Big Green Innovations is an emerging business within IBM. It is part of IBM’s Smarter Planet Initiatives, which focuses on managing world systems–energy, transportation, water, and carbon. The mandate for Dr. Nunes’s group is to explore business opportunities related to water and energy. There is great support and excitement about this initiative; IBM employees have offered to provide volunteer support to the group on their nights and weekends.
Big Green Innovations was formed just as “An Inconvenient Truth” and the IPCC report created a surge in public interest on sustainability issues. In March 2007, Sports Illustrated had a lead story on stadiums under water; to Dr. Nunes, this is great proof of how mainstream these issues have become. Further proof came from the survey of approximately 1,100 global CEOs that IBM conducts every two years. Sustainability is now one of their top three issues (along with globalization and talent retention).
Innovation and sustainability have to go together.

Dr. Subbiah: Like Dr. Nunes, Dr. Subbiah heads a pilot project/start-up business within the company. Her team is focused on creating channels to serve the base of the pyramid– including the four billion people around the world who don’t have access to health care– by looking at both near and long-term perspectives. Working with other colleagues at Pfizer, they are focused on addressing the health care needs of this population, including infectious diseases like malaria and tuberculosis that will spread to new geographies with global warming. An example of their work includes their partnership with the Clinton HIV/AIDS Initiative (CHAI) to improve access to Rifabutin, an important drug used in the treatment of TB in patients who have HIV/AIDS and are taking second line antiretroviral therapies. Pfizer will sell Rifabutin at $1 per dose, which is an approximately 60% reduction in price, and will also support registration in priority countries in the developing world. This agreement with Pfizer marks CHAI’s first partnership agreement with a research-based pharmaceutical company. Pfizer is also working with CHAI to explore a pediatric TB dose and the feasibility of co-packaging TB medicines in order to improve adherence.

Pfizer is also partnering with other organizations to develop drugs for diseases in the developing world. In addition, they are working with NGOs and public partners to change policies to address access issues.
In addition, because they work with some of the same external partners and certain issues involve both groups, Dr. Subbiah’s team has begun talking with members of Pfizer’s Environmental Sustainability team. Pfizer’s environmental efforts include a 20% reduction in emissions from its manufacturing processes since 2001 (plus a commitment to a further 20% reduction), and using fewer toxic chemicals.

Ms. Keck: Sustainability drives efficiency, transparency, and innovation. Walmart has three long-term sustainability goals: zero waste, 100% renewable energy, and selling sustainable products.

Walmart customers are frugal and price-sensitive, but they also have a growing awareness about quality and safety issues. The peanut butter and milk recalls (in the U.S. and China, respectively) had a considerable impact on consumer awareness. As consumer attitudes are changing, Walmart is broadening and accelerating its efforts, even in the downturn, and even though the sustainability team is small–just 8 people for a $400 billion business. In July 2009, Walmart announced that it is backing an independent consortium that is developing a simple sustainability index to help consumers make buying decisions.

How do you know if suppliers are really sustainable? How does Walmart define sustainability? Walmart, in partnership with NGOs and suppliers, has developed a 15-question Sustainability Suppliers Assessment Tool for suppliers. It provides suppliers with a simple roadmap to get them started.

Walmart also partnered with NGOs to bring transparency to the supply chain for certain jewelry items; a priority because jewelry has a challenging supply chain.

Ms. Choi: TIAA-CREF owns approximately 7,000 companies around the world; they are often indexed, so TIAA-CREF cannot sell company stocks at will. Instead, it works with companies to improve their policies and performance. One focus has been executive compensation. TIAA-CREF works with boards to make sure they are independent and really question management strategies and assumptions.

The company is also raising sustainability issues at the board level; it is part of governance and part of the pros and cons that need to be considered in business decisions. This is in accord with investors’ changing view on sustainability. Sustainability is not just a moral issue, it is an economic issue; sustainability impacts a business’s risk profile, reputation, brand, and franchise. TIAA-CREF is also advocating for climate change risk disclosures, including company strategy and metrics.

On the human rights front, it is currently raising attention regarding Sudan. TIAA-CREF wants companies to respect rights in all their operations–this again is both a moral issue and something that impacts risks, reputation, and investment returns–and specifically wants companies to act more responsibly in Sudan.
Because of new regulations, TIAA-CREF–and the public– can now have a stronger voice in governance issues, including executive pay. Other bills will give shareholders more say in board composition, but only if shareholders (all of us) use our new rights and powers. We have to step up and engage with the process.
There is a difference in the reputations of companies that are thinking about these issues defensively and those who think strategically and see opportunities.

  • Fresh Opportunity: New ways to broaden the scope and influence of sustainability in business.

Ms. Choi: She encourages companies to take leadership on governance issues, rather than waiting for the government to impose legislation. We now have a lot of new legislation regulating companies, but it didn’t have to be this way; companies could have developed market-based solutions. She prefers market-based solutions because they are more flexible and allow for more customization than regulations.

Dr. Subbiah: Water is a big issue. Consumption of dirty water can lead to infectious diseases; diarrhea is a big killer. The roles for Pfizer in addressing water-related issues are being explored.
Pfizer is also studying the various factors that prevent low-income people from accessing health care. An example of this work includes their partnership with Grameen Bank, where they are learning more about how lower-income individuals are interacting with the health care sector in the rural areas in Bangladesh. Dr. Subbiah’s team is listening and learning from different perspectives and engaging stakeholders from the start in order to develop potential solutions that are locally relevant; they know they can’t always use first-world solutions in the third world.

Dr. Nunes: She echoes Dr. Subbiah: IBM’s growth agenda is focused on opportunities in emerging geographies. Populations will shift to the first world if the third world cannot provide the resources to support them; Southern Europe is already experiencing this. Like Pfizer, IBM is exploring new business models for the base of the pyramid, seeing at it as an opportunity rather than a challenge.

** Keck: Economic development is a very important part of Walmart’s business model; the developing economies are its future clients and employees. Working at Walmart is often a first job that helps people move up the economic ladder.

  • Global Perspective: How business can accelerate sustainability through global operations and networks.

Dr. Subbiah: She cautions against accelerating too quickly–what works in one part of the world may not work in another. It is critical to get local input and local buy-in. You can teach the approach globally, but you have to develop localized solutions in partnership with an engaged community.

Ms. Keck: Walmart pairs a simple framework of three goals (zero waste, 100% renewable energy, and sustainable products) with tremendous freedom in each country for local innovation and methods for communicating what works. It is currently developing business processes and accountability systems related to sustainability. The Sustainable Value Network is comprised of business leaders, NGOs, academics, and government officials that work on issues. For example, the Packaging Network created a scorecard which has driven huge savings in supply chains. Business processes help people do more by demonstrating how new goals can be achieved.

Ms. Choi: Businesses need to incorporate different social norms and customs into their practices. You must be responsible to shareholders when you take public money. Europe is much more stakeholder friendly; companies are viewed as owned by the whole community, not just shareholders, and employee welfare is much more important. Europeans generally have a longer-term view. U.S. companies should follow this example.

  • New Roles: New partnerships that are emerging through government attention to sustainability.

Dr. Nunes: IBM is much more focused on public-private partnerships now that it is focusing on helping to develop and re-build public infrastructure. Both public water and utility infrastructures are incredibly inefficient; they lose 30-50% of the water/energy during transmission from centralized facilities to end-users.
IBM has co-invested in pilot projects such as a project in the U.S. Northwest that communicates real-time energy use information. Simply providing users with real-time data reduces use by 15% off peak loads, delaying or potentially eliminating the need to build new power plants.

The dialogue can begin either with government entities or NGOs. Investment money is often coming from business, so the NGOs are willing to start a conversation in order to access the corporate funding.

Ms. Keck: Regulations can be the confluence of what is possible and feasible. Good regulatory frameworks provide useful power and influence. An example: Walmart is dedicated to reducing shopping bag waste by one-third globally In China, use is down 95% because of a pre-Olympic ban on plastic bags. On the other hand, in Brazil there has been almost no reduction because there are no local policies that discourage use of plastic bags.

The message from an NGO session on food and agriculture was clear: invest in local farmers. In South America, Walmart partners with U.S. AID and local groups to provide resources and training to farmers. In Brazil, Walmart is working with meat suppliers to reduce environmental degradation and rainforest destruction related to raising cattle. Walmart credits a Greenpeace report for bringing this issue to the fore. Walmart then acted as a catalyst to bring the meat processors to the table. During its Walmart Brazil Sustainability Summit, it had the 20 largest suppliers, including every Brazilian beef processor, sign a corporate responsibility pact and commit to audits.

Walmart purchases very large heating and cooling systems, so it challenged the manufacturers to create systems that are 70% more efficient than EPA standards. Most companies refused to even try, but one company succeeded in creating the more efficient heating and cooling systems. Walmart now purchases exclusively from that company, helping to create a market for the new technology.

The panelists also answered questions from the audience:

How many Boards have sustainability committees?

Ms. Keck: Walmart is a young, fast-growing business that did not have all the needed systems in place, and as a result had problems with employment practices. It has now invested in infrastructure and systems to address those issues. Walmart has always complied with environmental laws and regulations, but then CEO Lee Scott saw a great opportunity for Walmart to become an environmental leader–the environment was an area where Walmart had not yet been publicly criticized. Its first efforts were defensive, but then Walmart recognized the possibilities for business innovation and employee engagement.

Who bears the responsibility for damage to water tables caused by years of manufacturing/production efforts? In general, who bears the responsibility for legacy problems?

Dr. Nunes: Responsible companies will remediate, even if they inherited the problem with an acquisition. Even as companies innovate, there will still be problems. In fact, there might be more problems as better detection methods allow us to discover more problems.

Ms. Choi: This is a policy issue. Your business accounting is not reflecting the full costs of the business and real economic situation if it does not include these issues.

Dr. Subbiah: Companies need to partner with local communities to address these issues. It is a matter of individual leadership. Companies are made of many employees; employees can push companies to do their part.

Closing Keynote Address by Michelle Moore, Federal Environmental Executive, Council on Environmental Quality, Executive Office of the President. Ms. Moore is responsible for promoting sustainability and environmental stewardship throughout the federal government’s operations. She previously served as the SVP of Policy and Public Affairs at the U.S. Green Building Council, where she created partnerships and programs that helped to grow green building from a niche market to a mainstream movement. Ms. Moore’s office leads the implementation of the new Executive Order on Federal Sustainability, which focuses on leadership by example in federal agency operations. It will leverage the size and scale of federal operations to build on the momentum of the Recovery Act and help to create a clean energy economy. The federal government owns significant amounts of land and nearly 500,000 buildings, operates more than 600,000 vehicles, employs more than 1.8 million civilians and 1.6 million military personnel, and purchases more than $500 billion of goods and services each year (that’s half a trillion dollars a year). It encompasses many varied agencies, organizations, and types of operations, including land management, administrative agencies, and military operations. In other words, the government has substantial purchasing power. It has the scale to move markets. This can be strategically used as a policy tool. The government can be a transformative actor; it can make a market for good entrepreneurial ideas that can become great American enterprises that create jobs.
Ms. Moore’s approach is threefold:

  • Focus on what is abundant. For example, the federal government has an abundance of wonderful people who have been interested in sustainability for 20+ years.
  • Integrate, avoid silos. The many federal agencies are very diverse with diverse missions, but they can learn from each other.
  • Keep score. In 2006, the Office of Management and Budget started using scorecards to measure energy use and environmental and fleet performance in order to meet an efficiency mandate. The scorecards are very effective at driving action. Similar scorecards will be used to measure the reductions required by a new Executive Order (see below), and they will be published on government websites so that all of the public can review them.

President Obama signed an Executive Order on October 5, 2009 requiring the federal government to incorporate sustainability into its operations. From the White House Press Release: Demonstrating a commitment to lead by example, President Obama signed an Executive Order today that sets sustainability goals for Federal agencies and focuses on making improvements in their environmental, energy and economic performance. The Executive Order requires Federal agencies to set a 2020 greenhouse gas emissions reduction target within 90 days; increase energy efficiency; reduce fleet petroleum consumption; conserve water; reduce waste; support sustainable communities; and leverage Federal purchasing power to promote environmentally-responsible products and technologies.

More information about these goals:

  • The emissions targets incorporate scope 1, 2, and 3 emissions; scope 3 includes emissions resulting from employee travel and commuting, so this is setting the bar at a challenging level. These efforts have to be cost-effective, to showcase that greenhouse gas emissions reductions also save money.
  • The goal is not just to reduce energy use; it’s also to increase agency use of renewable energy.
  • Water use reduction targets will be set and storm water will be managed (Washington D.C. actually charges a fee for sending storm water to the sewer plants).
  • To meet petroleum reduction goals, the army just made the largest electric-vehicle purchase by a government organization – more than 4,000 vehicles.
  • The federal government, as a large employer, can help to make communities more livable and sustainable. It provides economic opportunities and can also affect issues like traffic by locating offices near public transportation.

Special thanks for their contributions to: Coyne PR, Framework: CR, Hudson Chesapeake LTD, Institute of International Education, Mohawk Paper, Orange Sparkle Ball, Pam Snook Public Relations, Rivanna Designs

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The Green Consumer: Fact, Fiction and the Future of Marketing

Posted on June 30, 2009 by wnsfwriter

WNSF NET NOTES

VOLUME VI, NUMBER 6

Contents:

I. Presentation

“The Green Consumer: Fact, Fiction and the Future of Marketing” hosted by Herman Miller, New York City, June 30, 2009

II. Key Findings

III. Presenters:

Freya Williams; Co-founder and Global Planning Director of OgilvyEarth, Advertising Agency Ogilvy and Mather’s Global Sustainability Practice

Scott Charon; Product Development Manager, Herman Miller

Dave Stangis; Vice President for CSR and Sustainability, Campbell Soup Company

Kathy Robb; Partner, Hunton & Williams

IV. Questions for the Panel

V. Next Events

October 6: WNSF’s sixth annual Businesswomen’s Sustainability Leadership Summit Details and registration at http://www.wnsf.org

VI. News

VII. WNSF Concept

I. NETWORK PRESENTATION

The luncheon panel looked at the growing trend of ‘green’ consumption. As consumer preferences turn increasingly to more responsible, sustainable products, companies are marketing ‘eco-friendliness.’ The panelists also discussed how companies can develop effective marketing strategies for ‘green’ products in the current climate of perceived scarcer resources (both economic and natural). Lastly, as ‘green’ marketing and publicity become more pervasive, the Federal Trade Commission is taking a closer look at product labeling to ensure consumers understand what they’re buying. Adding to the burden of a global economic downturn, these variables create a major marketing challenge.

The panel included Ogilvie Mather’s Freya Williams, who talked about changes in advertising and a recent survey showing a greater awareness of sustainability in general in light of the economic downturn. Scott Charon of Herman Miller presented the company’s environmental principles and its ‘perfect vision’ to become a completely sustainable company by 2020. Campbell Soup’s Dave Stangis explained the reinvention of the company’s social responsibility policy, which includes reducing the carbon footprint of the product portfolio. Finally, Kathy Robb of Hunton & Williams discussed the FTC’s current guidelines on green advertising and the potential for movement into policy changes and alterations in current regulations.

I. KEY FINDINGS

  • As customers demand “green” products, companies must market their merchandise in ways that make the concept come alive to consumers.
  • When marketing, companies must be truthful, avoid generalities, specify what they’re doing and focus on the consumer.
  • Some companies (including Herman Miller) are striving for “perfect vision” by 2020–reducing hazardous waste and landfill to zero and purchasing 100 % renewable energy.
  • The Federal Trade Commission’s (FTC) Green Guides advise, but do not regulate, companies’ “green” product claims.

III. Freya Williams, Co-founder and Global Planning Director of OgilvyEarth, Advertising Agency Ogilvy and Mather’s Global Sustainability Practice

Ms. Williams discussed the importance of making green marketing relevant and understandable for consumers. Rather than focusing on more distant ideas, like saving polar bears and rainforests, companies should help consumers understand how sustainability can deliver value in areas that are more personally relevant such as their health, their families’ health and the health of their communities. When advertising, companies must figure out what motivates people and frame the sustainability message in those terms.

With the recent economic downturn, a fear has been that the topic of sustainability might be pushed aside by both consumers and government. Luckily, this hasn’t happened. If anything, the downturn has made people more open to change and new ideas, which, in turn, is paving the way for fresh interest in sustainable solutions. However, with that change comes uncertainty. People are hungry for “trusted sherpas” to guide them safely through this new reality. There is a clear role for companies to paint a positive picture of a sustainable future and show consumers how the brands they know and trust are helping make that future a reality–and how they can participate in building it.

IV. Scott Charon; Product Development Manager, Herman Miller

Beginning his presentation by holding up a bottle of honey, Mr. Charon displayed Herman Miller’s long-time dedication to and interest in environmental sustainability. He quoted the company’s founder, D.J. De Pree, who, in 1953 said: In the mid 1990’s, as a way to combat unwanted wasps in Herman Miller’s early location, the company brought in honey bees to rid the office of the pests. This innovative solution meant that the company would not have to spray any pesticides or insecticides. In this and other ways, the company tries to fulfill the longstanding aims of founder D.J. DePree, who, in 1953 said: “Herman Miller shall be good stewards of the earth.”

The company’s design team devises products for the environment, based on three pillars: chemistry, disassembly, and recyclability. The team looks to the supply chain to find out exactly what chemicals are used to make each product, and, from there, they can determine if the chemicals are harmful to the consumer or the environment. The company looks at two cycles of product disassembly, including a technical cyclet (taking something from nature, turning it into a steel or aluminum product and then recycling that steel/aluminum), and a biological cycle (taking nature, making a product and then returning it back to nature).

While product design is a big part of the company’s sustainability focus, Herman Miller also aims for “perfect vision” by 2020– reducing hazardous waste and landfill to zero, purchasing 100 % renewable energy and minimizing its carbon footprint.

V. Dave Stangis; Vice President for CSR and Sustainability, Campbell Soup Company

Mr. Stangis discussed the importance of communicating the genuineness of a company’s green advancements, without misleading the consumer. Each company must decide who its customers are, what they want to know–and then communicate in a way that simplifies the message and conveys authenticity to the customer. The simple rules include: tell the truth, avoid generalities (e.g., ‘environmentally friendly’ is too vague), be specific about what the company is trying to do (e.g., if this product is better than the last, explain why, including the specific benefits of the new product), and finally, focus on the consumer.

Mr. Stangis also mentioned the Campbell Copy-Claim Review Board, a team that meets weekly to review all the potential claims and ensure that no mistakes are made, as a way to systematically manage advertising and marketing claims.

VI. Kathy Robb; Partner, Hunton & Williams

Following Mr. Stangis’s mention of the Copy-Claim Review Board, Ms. Robb went into further depth on jurisdiction and guidelines of the marketing of ‘green’ products. The Green Guides, as passed in 1992 and revised in 1998, is the FTC’s way of looking through the consumer’s eyes and at how they’ll interpret and react to packaging and what is written on product labels. Advertisements must be truthful, substantiated , and not confusing or misleading.

The FTC can bring enforcement actions. In the past, the FTC has focused primarily on claims of “recyclable” and “biodegradable” for products. While companies can list specific environmental innovations about their products, they cannot describe their environmental impact in a way that would be misleading to consumers. Ms. Robb then gave the example, from the FTC green guides, of paper trash bags labeled “recyclable”. While the bag itself may in fact be recyclable, this statement is misleading, because the average consumer in normal use of the bag would not separate the garbage from the bag to recycle it.

Since it has been over 10 years since the last revision of the FTC’s Green Guide, there are plans to reassess it. New provisions may include whether ‘carbon-neutral’ and ‘sustainable’ can be used on labels and what requirements a product must meet in order to earn such a label.

VII. QUESTIONS FOR THE PANEL

Q: How can a company develop effective marketing strategies that promote their ‘green’ items, with the increasing regulatory oversight. How can companies advertise honestly, while maintaining a balance of being outspoken but staying within the regulations?
Dave: Building consumer education, so that they learn more about products’ attributes i.e. recyclability.
Freya: Work with clients to understand their vision, and how best to say it. Transparency is critical. Example: Sun Chips’s bags are created by solar power and they recently launched the news that beginning in 2010, their bags will be 100 % compostable.

Q: How does the FTC use standards that are being self-created?
Kathy: The FTC is aware of the standards and there is compliance with self-regulation on green guides. Dave: Companies are also enforcing each others’ claims. They are regulating their competitors by checking on the labeling of competing products, and then bringing enforcement action against the companies.

Q: How, on the order of internal carbon footprint, have you looked at your companies’ packaging and tried to change from expendable to sustainable?
Dave: Campbell’s has looked at the supply chain and defining measures for suppliers. Small changed in packaging has save millions of dollars and millions of gallons in water/pounds in waste. Campbell has developed a set or Sustainable Packaging Guidelines. The important next step is to then show and share this with the customers and consumers. Scott: Herman Miller strives to select products that can be recycled, but that will also last and not break. The construction of products is a balancing act between being recyclable and being strong.

Q: With customers being worried about climate change, how does that change advertising?
Freya: We have developed four pillars of sustainability brand strategy to guide our and our clients’ thinking towards best practice:

  • Synergy: Sustainability should enhance what a consumer is looking to a brand to deliver, to build the brand and strengthen consumer loyalty
  • Transparency: be open and honest about your progress, both your strengths and where you still have work to do
  • Relevance: find a way to tell a story that meets a consumer need or desire
  • Sustainability can often deliver exactly what people are looking for
  • Leadership: brands should strive to go beyond compliance to leadership to deliver the greatest value to consumer and to the business

VII. NEWS

  1. In May, WNSF held its third annual Businesswomen’s Sustainability China Dialogue in NYC with its Chinese partner, the China Association of Women Entrepreneurs (CAWE), welcoming a delegation of ten. This year’s dialogue focused on water issues in the US and China, featuring Yu Jian, chairman of Shenzhen Water Co., and Kathy Robb, chair of WNSF’s Board of Directors and Director of the Water Policy Institute at Hunton & Williams, where she is a partner.
  2. In June, former intern Sohana Barot, who began with WNSF just after her freshman year and worked with the organization over three years graduated from CUNY last spring with a Bachelors in Political Science, Magna Cum Laude, along with City College of New York Honors, Rosenberg Humphrey Honors and Political Science Honors. She’s off to an accelerated law school program at Rutgers University School of Law, where she will focus on international business and environmental law. The theme of her senior thesis centered on CSR in China and Saudi Arabia. Says Barot: “WNSF has definitely been a major contributing factor in my interest in corporate social responsibility as well as my future plans for law school. ”

VIII. THE WOMEN’S NETWORK FOR A SUSTAINABLE FUTURE

WNSF provides a forum for business and professional women to congregate, reflect, and act on the converging issues of corporate social responsibility and sustainable development. Through meetings and simple electronic support tools, the Network aims to facilitate the exchange of experiences and best practices on these vital workplace issues. By creating a new network of executive women, the Network seeks to improve responsible practices in workplaces; sensitize corporate culture more generally to issues of sustainability and social responsibility; and encourage a public commitment locally, nationally, and internationally to sustainability principles.

For more information, please contact:
Ann Goodman, PhD
Executive Director
WNSF
http://www.wnsf.org
info@wnsf.org

BOARD OF DIRECTORS: CHAIR: Kathy Robb, Esq., Partner, Hunton & Williams; Marlys Appleton, VP, Alternative Investments and Sustainability, AIG; Dianne Dillon Ridgley, Director, Interface Inc. Board; Shelly Esque, VP, Intel Corporation; Karen Flanders, The Prince’s Rainforest Project; Joanne Fox-Przeworski, former Director, Bard Center for Environmental Policy, Bard College; Ann Goodman, Executive Director, WNSF; Sarah Howell, former Director, Corporate Communications, BP; Michele Kahane, Professor, The New School; Clair Krizov, Director, EHS, AT&T; Joyce La Valle, Senior Vice President, Interface Inc.

The Women’s Network for a Sustainable Future is a 501c3 organization. This issue of Net Notes was compiled by Kat Barnes

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First Annual West Coast Summit: Women and Sustainability: Clean Tech’s Advantage for Growth

Posted on May 21, 2009 by wnsfwriter

West Coast Summit – May 21, 2009

Hosted by Intel
Sponsors: Intel, HP, Adobe, Symantec, Applied Materials
Special Thanks to: Framework:CR, Steve Voien

Introduction & Welcome

Shelly Esque, Vice President, Intel, and WNSF Board Member, welcomed attendees. Kathy Robb, Partner, Environmental Practice, Hunton & Williams, and Chair, WNSF Board What is WNSF? WNSF = women + business + sustainability

  • Women in particular want to make a difference at work
    • Help business understand sustainability
    • Create business opportunities, contribute expertise
    • Help people connect
  • Broader value of WNSF: Cited valuable WNSF training programs such as in China for women entrepreneurs

Ann Goodman, Ph.D., WNSF Executive Director

  • Welcomed participants to first West Coast summit, thanked the sponsors, and, in particular, the Intel staff who worked for months to help put this event together – Shelly Esque, Suzanne Fallender, and Grace Davis
  • The goal of the WNSF’s first West Coast Summit is to zero in on the contributions the technology industry can make in advancing sustainability
  • The potential benefits we can help create are many, including: reducing carbon footprint, lowering energy costs, engaging employees, and enhancing company reputations
  • We gravitated to the topic of ‘clean tech’ for three reasons:
  • First, the West Coast has a record of and a vision for innovation in sustainability
  • Second, technology is a driver of the economy here; the industry is increasingly using its expertise to come up with sustainability solutions.
  • And third, clean tech is now becoming a key policy issue at the local, state, national and international levels.
  • So this combination of factors helped us home in on the theme of how ‘clean technology’ can help increase efficiency, reduce waste and boost productivity–not just in the Information, Communications and Technology (ICT) sector, but in others, too.
  • Our speakers–leading women in the technology industry–will address the challenges they face in implementing new clean technology operations, products and services.
  • We’ll also get some insights from a non-technology company on how it has used clean-tech measures to advance sustainability, as well as a representative from civil society.

Panel Discussion

Moderator: Dr. Goodman
Panelists

  • Lorie Wigle, General Manager, Eco-Technology Program Office, Intel
  • Nancy Parmer, Senior Director of Sustainability, Customer Solutions Group, UPS
  • Mary Dent, General Counsel, SVB Financial Group
  • Bonnie Nixon, Director of Environmental Sustainability, HP
  • Margaret Bruce, Western Regional Director, The Climate Group, and board member, Sustainable Silicon Valley (nonprofits)

Ms. Goodman posed the following questions to the panelists:

1: How can technology in general–and clean-tech solutions in particular–help companies improve energy efficiency, reduce their carbon footprint, and achieve their larger sustainability goals?

Ms. Wigle: We take a team approach as to how products contribute to the environment
We talk about “sustainable manufacture and use”
Look at the entire product cycle
Our internal rule of thumb is 2%-98%

  • Studies from Gartner and the Climate Group showed that information and communications technologies contribute 2% of global CO2 emissions
  • Other industries account for the remaining 98%
  • Our role
    • How to optimize that 2%?
    • For example, reduce energy use in data centers
    • How do we use our 2% to benefit the 98%
    • We determined which industries emitted the most CO2
    • Three biggest: construction, manufacturing, transportation
    • Correlates with how much they spend on information and communications technology as a percent of revenue
    • Q: Does Intel place a special focus on these industries?
    • Intel is examining and working with partners to focus on those industries
  • Examples/opportunities
    • We see the potential to do 3-D simulations of prototypes for these industries–cuts energy/time spent on developing prototypes
    • Buildings are responsible for 70% of U.S. emissions
    • Design in air flow and sunlight
    • More efficient electricity delivery through the Intel Open Energy Initiative
    • As we build Smart Grid with $4B in Recovery and Reinvestment funding, help put infrastructure in place to make sure that money is well spent
    • We’re pushing for open architecture and standards to leave room to innovate

Ms. Nixon

  • 11 years at HP; in her most recent role, managed ethical sourcing
  • HP has become much bigger and more consumer focused since we purchased EDS, now we have 300K employees–we became a very large services operation, more along the lines of IBM
  • We do real research, some of it regionally customized
  • We are active in development of legislation
  • “We put the environment in a framework of ‘Our house, your house, our world”
  • Particularly in the last two years, we’re bringing out a lot of energy-efficiency products
  • We see our role as to help industry reduce impacts, e.g., dematerialization of newspapers * 30-70% of magazines and newspapers never get read–we have an initiative to digitalize these publications

Ms Dent

  • SVB Financial Group is primarily a commercial bank, focused on serving Silicon Valley and other entrepreneurial centers across the United States and abroad. SVB banks for 160-170 clean-tech companies
  • In addition to banking services, SVB sees an important legislative role for the private sector in turning policy from “Why we can’t do something, these are the problems” to “How can we make this happen?”

Ms. Parmer

  • One of our important roles is that when we identify energy saving-technologies we share them with our customers. We are seeing an increase in customers who benchmark what UPS is doing in the area of sustainability. Customers want to know their carbon footprint so they can set their baseline and identify ways to reduce their CO2 emissions

Ms. Bruce

  • The question for Sustainable Silicon Valley is how do we advance sustainability, how do we make improvements in critical issue areas, without command and control regulation?
  • With regard to The Climate Group, we have only a few years to beat climate change, and need to accelerate the process. It’s important to accelerate high-tech solutions, such as carbon capture and storage, solar, photovoltaics, and in particular how to make the Smart Grid work
  • We’re placing a big emphasis on Copenhagen. Also on legislation in the Midwest. We bring good news stories regarding the potential of clean-tech jobs

2: How can users, particularly those in non-tech industries, profit from clean-tech solutions? What are the potential benefits to the bottom line?

Ms. Nixon

  • For non-tech companies, these are some of the demands that clean-tech products can satisfy
    • How can we save variable energy costs–electricity and gas?
    • My data center is full up–how can I get more capacity out of it?
  • Many data centers are filled with unused capacity. Our paradigm shift–and this is pretty dramatic–is to move from the business of equipment sales into services, in which we own and manage all the equipment–servers, desktops, data centers–and use new security technology to protect data. This allows us to manage the entire center much more efficiently, reducing our footprint and that of our customers

Ms. Parmer

  • Clean tech has the potential to bring benefits to the bottom line. For example:
    • UPS has one of the largest alternative fuel vehicle fleets in the transportation sector. We have 1,819 AFVs in our network. In 2006 UPS purchased a hydraulic hybrid vehicle
    • How many of you have heard of our avoid-left-hand-turn policy? Our engineers figured out that if you avoid left turns and continue driving right in a looped pattern, you actually save time and fuel. This is part of a bigger software program developed by UPS called package flow technology, which maps the most fuel- efficient route for our drivers. Altogether, through this avoid-left-hand-turn policy we have saved 3 million gallons of fuel and reduced CO2 emissions by 32,000 metric tons in 2007. This is equivalent to removing 5,300 passenger cars from the road for a full year
    • We started installing Telematics technology in all of our new package cars. This technology draws a detailed picture of the drivers’ and package cars’ daily activities, from the number of times a package car moves in reverse to the amount of idle time. This technology has helped UPS reduce energy consumption and carbon impact by optimizing vehicle performance, fuel economy, improved maintenance, and optimized dispatch planning and driver routing to reduce overall driver miles
    • We understand the importance of fuel management and carbon efficiencies in today’s economy. In our engineering and automotive groups we have people that are dedicated to reducing carbon and improving fuel efficiencies. This is our commitment to a cleaner environment
    • In 1985 we made a decision to replace our 727s with the quieter and more fuel-efficient 757s. We retired our last 727 back in 2004. The 757s are 30% more fuel efficient than the 727s. LIDO is another technology UPS leverages to calculate the most efficient routes based on weather, winds, terrains, and other factors. LIDO was introduced in 2003 and has saved more than I million gallons of gasoline
    • We also use the continuous descent approach (CDA). Many airlines approach the airport taking a step approach. In order to reduce fuel emissions and noise, the CDA uses aircraft idle power for approaching the airport. The test data suggest that CDA reduces noise by 30% and nitrous-oxide emissions by 34% and saves 40-70 gallons of fuel per approach. UPS is awaiting FDA approval to implement this on a larger scale
    • Clean tech also creates opportunities for collaboration. We are a long time Charter Partner with the EPA Smart Way Program. In 2008, we won the Smart Way Environmental Excellence Award for conserving energy and lowering greenhouse gas emissions
    • UPS is also a member of Climate Leaders, an industry-government partnership that works with companies to develop comprehensive climate-change strategies. The companies commit to completing their greenhouse gas emissions inventory and setting greenhouse gas reduction strategies. If you would like to learn more about what UPS is doing, you can visit two websites: http://www.sustainability.ups.com and http://www.pressroom.ups.com

Ms Wigle

  • Whether it’s digitizing music or something else, clean tech can help us reinvent more and more of our daily life processes, allowing us to transform how we do things in ways that are more sustainable

Audience follow-up question: How do you deal with this tradeoff: That selling new products, even if they are more energy efficient, puts older equipment into landfills?

Response from Ms. Nixon:

  • We must all be clear that this is a journey. For example, we still need a device to connect to one another. Can we make it smaller and more efficient? Yes.
  • And the reality is that we’re a for-profit company – we’re going to go on selling things

Response from Ms. Wigle

  • A big focus for us is looking at the entire life cycle of a product. How do we optimize each stage?
  • One idea we had was: Why not have the equivalent of a “freshness date” on our products, when consumers might want to start thinking about whether it’s time to replace them?

NOTE: At about this point about 10 young women came into the room and sat down. Ms. Esque later told us that they had invited 15 women tech bloggers to join us, and that we were being blogged, twittered, and videoed

3: How can clean technologies boost economic recovery locally, regionally, and globally?

Ms. Bruce

  • Clean tech can boost economies from the local to national level. But I’m concerned that huge expectations are being placed on clean tech to save the planet. It’s a tall order for a young industry in which the different technologies aren’t fully differentiated. Is it going to be nuclear or clean coal?
  • How are we going to use our new understanding of what wasn’t clean tech and what is clean tech to create solutions from the local to national level?
  • How do we transform into more of an “eco-society”, in which we use more data and less stuff?
  • How do we use cloud computing to reduce the need for more computers?
  • There are some basic logistics and infrastructure questions. For example, San Jose (California) has a goal of having the equivalent of 100% of the city’s electricity come from clean, renewable energy. One goal for achieving this is to encourage the installation of 100,000 solar systems over the next 15 years (see San Jose Green Vision document for details). Fifty-two weeks per year = 780 weeks, which means 128 systems permitted and installed every week. There’s not enough capacity to do that (systems, installers, etc). What about the permit staff? There aren’t enough people to permit these projects
  • Yes, clean tech can boost economies so long as we recognize there are many steps along the way. And that companies need to be at the policy table to make sure this is done right
  • There are global challenges as well. There’s a huge push in China to develop solar production, but in the rush to do this toxic chemicals are being dumped on the land that are killing people, while we congratulate ourselves that we’ve bought our solar panels. One of the ways governments can help is to set and uphold baseline standards in these areas

Audience Question (Posed by a recent graduate who earned a Masters in Environmental Science): How do you deal with NGOs who think companies are the bad guys? A lot of my grad student buddies can’t believe I went into the private sector

Ms. Parmer

  • Measurement is critical. When you create a baseline, and can then demonstrate reductions in energy use, for example, that helps

Ms. Bruce

  • Transparency is important

Ms. Nixon

  • I started out as an activist many years ago. At some point you must be willing to go into the mouth of the lion – no one is evil in these corporations. laughter in the audience; Ms. Nixon also begins to laugh Oh, you know, some may be evil. But it’s phenomenal how much we can accomplish from the inside.

4: What are some new opportunities related to policy efforts underway that may be available to companies?

Ms. Wigle

  • In the private sector, we get the biggest wins when we go on the offensive, apply our tech understanding to identify which actions will have the biggest impact. We’re in a unique situation to do that, then to work with governments to create good policies

Ms. Dent

  • I think we have to step back and think about what the long-term role of the government is in clean tech, not just what it’s going to do in the next several years with the Economic Recovery and Reinvestment Act. What’s the government’s role for the next 20-30 years? There’s just not enough discussion about that
    • Looking at important policies, certainly cap and trade is important. But there are myriad ways the government is involved. For example, is the government using its purchasing power in a way that will help develop clean technologies?
    • China is putting enormous resources into clean technology, and into integrating clean tech into overall economic development–serving as both funder and consumer
    • What about the role of tax incentives? One problem is that Congress typically only authorizes tax credits over five years. There’s no certainty that these credits will be there for the long term
    • Can we create better collaborations between government and universities? Can the government help new technologies get over the “valley of death” and reach the scale where they can get commercial funding?
  • In Europe, for example, the governments (through high prices) create a market in which consumers are driven to move more rapidly toward alternative/reduced fuel consumption cars, which spurs the development of leading edge technologies

Audience question: How do you get employees educated and involved in sustainability?

Ms. Wigle

  • Intel has established environmental metrics as part of people’s bonus. People are rewarded for developing sustainable products and actions in the workplace. Employees also receive recognition, which is a big motivator

Ms. Nixon

  • HP has had employee sustainability chapters for a long time that look at multiple areas of sustainability. We also look at what employees do at home to reduce impacts
  • What can we do at the facility level? In our Corvallis, Oregon, facility, for example, the engineers worked with the IT people to put in clean-tech controls to manage HVAC. In San Diego, it was solar. The engineers especially get very excited about this stuff
  • How do we develop processes and products to bring to market?
  • How do we impact the world in a better way? Through volunteerism, social investment, promoting digital lifestyles versus cutting down trees?

5: How can women get more involved in this field?

Audience elaboration: How do we get the board asking the big questions? One of the biggest forces for change, according to a new study, is women in the boardroom

Ms. Nixon

  • I have a sense of urgency about this and see my role as a catalyst

Ms. Parmer

  • Women can take more of a leadership role in this evolving field. In general women are not only multidimensional but also multigenerational. On our sustainability committees, 60% are women. We understand the importance of pushing forward

Ms. Dent

  • I don’t agree as much regarding the difference in genders. The question is to stimulate action. Whether it’s women, men, young or old, all have the ability to contribute. How can we collectively find solutions?

Attendees then discussed the same questions in small groups, later reconvening to hear the Keynote address.

Keynote highlights Mary D. Nichols, Chairman
California Air Resources Board

  1. Women are uniquely skilled to help organizations address sustainability challenges. And in this exciting time–with far-reaching implications for how companies position themselves to take on such challenges–many of the decisions that business takes rest on women’s shoulders.
  2. California is leading the way on environmental issues such as emissions and climate change. And with the Obama Administration’s position on environmental leadership–that industry and government can work together to protect the environment while positively affecting job growth and the economy–California business, the technology industry in particular, can find innovative ways to lead positive environmental change.
  3. California is providing a model for the new green economy, transforming how we produce and consume energy and control and reduce emissions and spurring clean-tech investment. And you, California businesses, are the state’s essential partners.
  4. By joining California on the ground floor of this effort you will not only enjoy an early jump on opportunity, you will align your reputation with California’s.
  5. The state of California is helping small businesses reduce their energy use and will continue to do so. California could get as much as $50 billion of the ARRA funds to help small businesses reduce their energy use.
  6. Energy efficiency is key to reducing energy use and greenhouse gas emissions. ARB has produced a toolkit to help small business reduce their carbon footprint and save money. See CoolCalifornia.org. ARB is also considering a similar toolkit for local governments.
  7. Cap and trade is a business opportunity. Companies that can figure out a way to cost-effectively give people the things they need and want, with the lowest overall life-cycle impact on the climate, will be the winners in this new economy.
  8. We all have a role to play in the transformation to a clean energy future. Leaders like you will be integral to leading us into a more sustainable future.
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Economic Crisis & Climate Change

Posted on February 12, 2009 by wnsfwriter

March 2009 Volume VI Number 4

Contents:

I. Presentation

“Economic Crisis and Climate Policy” hosted by Swiss Re, New York City, February 12, 2009

II. Key Findings

III. Presenters:

Adrienne Atwell; Senior Vice President, Swiss Reinsurance America Corporation
Emily Soong; Associate, Deutsche Asset Management
Rohit Aggarwala; Director of the New York City’s Mayor’s Office of Long-Term Planning and Sustainability

IV. Questions for the Panel

V. Next Events

April 16: Peer Learning Luncheon panel on “Greener Infrastructure and Design: Costs, Benefits, Opportunities in New York

Details to follow. Registration at http://www.wnsf.org

May 21: WNSF’s first West Coast Summit in Santa Clara

Details to follow. Registration at http://www.wnsf.org

VI. News

VII. WNSF Concept

I. NETWORK PRESENTATION

The luncheon focused on the near term issue of the economic downturn, along with the impact of long-term climate changes–and vice versa. Over the next 20 years, both public and private sectors are likely to increase their spending on climate adaptation. According to Mark Way, Director of Sustainable Development, Swiss Re Americas, the UN predicts that up to $100 b will be spent by 2030 for the world to adjust to climate changes and invest in sustainable development. Various aspects of the combined crisis were discussed by Adrienne Atwell, Sustainability Manager of Swiss Re, Emily Soong, associate at Deutsche Asset Management, and Rohit Aggarwala, Director of the New York City Mayor’s Office of Long-term Planning and Sustainability

II. KEY FINDINGS

  • With a growing imperative to adapt to climate changes, the UK Prime Minister has estimated that up to 25 million new “green” jobs around the world could be created by 2050 with the appropriate supportive policies in place
  • The public and private sectors will need to work together in order to adapt to and plan for environmental disasters.
  • Because NYC has 950,000 buildings, the city could become a key center of design for energy efficient construction and green renovations, according to the NYC Mayor’s Office.
  • The federal government’s new economic stimulus plan is estimated to include approximately $70 billion for “green” spending, with the bulk aimed at increasing climate science research, energy efficiency and renewable energy development.

III. Adrienne Atwell, Sustainability Manager, Swiss Re

Ms. Atwell discussed the risks involved with climate change, particularly involving climate-related natural disasters and other weather-related emergencies. Moving financial decisions to the emergency-response planning stage will better enable governments to cope with the effects of climate change and meet the needs of affected populations. In order to meet the demands of adaptation, public and private sectors will need to work together to plan for and anticipate natural disasters, as well as solutions to them.

Two examples of effective public-private partnerships related to climate adaptation were described: A Hurricane Relief Program in the Caribbean, and a Drought Program in Africa. The Caribbean Catastrophe Risk Insurance Facility (CCRIF) provides relief funding when storm winds reach a specified speed which then cause damage requiring funding aid. The African project involves an NGO and three African nations in preparation for potential drought. In this program, Swiss Re will pay $2 m if both precipitation and crop production fall below a certain level. This program helps the countries recover after a drought that has impaired crop production. These are just two of Swiss Re’s answers to climate and environmental risks

IV. Emily Soong, Associate, Deutsche Asset Management

Filling in at the last minute for Roelfien Kuijpers, Global Head of DB Advisors, Ms. Soong discussed her group’s climate change research and its investment implications. As of Dec. 2008, Deutsche Asset Management, (DeAM), managed roughly $655 billion across a number of asset classes including Real Estate and Alternatives. DWS Investments, the mutual fund arm of Deutsche Asset Management, manages approximately $4 billion in publicly listed climate change-related equities, in sectors ranging from agribusiness to new resources.

As one of the primary climate change research centers in the firm, DB Climate Change Advisors attempts to provide strategic insight and direction to all corners of the organization. Its primary role is to provide thought and market leadership on the climate change market to the investment community.

DB Climate Change Advisors has found that including climate change sectors in an investment portfolio through proper asset allocation can improve the risk/return profile for investors, while giving them exposure to an emerging low-carbon economy.

DB Climate Change Advisors believes that investment in the clean energy sector will continue to rise. Investment in the clean energy space increased from $148 billion in 2007 to $155 billion in 2008, representing a 4.4% increase. Venture capital and private equity investment continues to drive growth – there was approximately $13 billion of VC/PE clean energy in 2008, compared with $9.8 billion in 2007, according to New Energy Finance. Some sectors attracting the most PE/VC investment include the solar, wind, biofuels, and energy efficiency sector.

Although the global arena is now facing an overall economic downturn, approximately 69% of business owners claimed that they still plan to maintain their current level of investment in environmental causes in 2009. Deutsche Bank continues to be optimistic about the clean energy investment market. While the climate change investment market represents a long-term business opportunity, it also provides the investment community a venue to address the implications of its investments.

V. Rohit Aggarwala, Director of the New York City Mayor’s Office of Long-term Planning and Sustainability

Mr. Aggarwala gave insight and information on New York City’s reaction to the challenges of economic crisis and climate change. NYC was the first city in the US to have local projections on what climate change means and the how these changes contribute to the risk of decreasing and weakening the economy. These projections, a first for NYC, allow companies to actually plan ahead, with the facts. In order to promote sustainable development, all levels of the government must be involved and work together on this multi-faceted issue. The Mayor’s Office understands the importance of pricing carbon emissions and understanding climate risks, in order to be responsible stewards of public money. Since the local government cannot go into debt, the Mayor’s Office is stressing the essentialness of the private sector in helping finance environmental investments.

VI. QUESTIONS FOR THE PANEL

Q: What are the opportunities to diversify and bolster the local city economy through green investments?
Rohit: One idea has been to use the multitude of rooftops in Manhattan for solar energy. With 950,000 buildings in NYC, we should use them as our competitive advantage by becoming the center for design of green buildings and buildings with increased energy efficiency. As NYC redesigns and renovates the buildings, infrastructure investments will be increased. The city will need $30-50 billion over the years in order to create the 2nd Ave subway and green energy grids.

Q: What are some international policies and their contribution to the current economic downturn that need to be made?
Emily: In terms of investment needs, to reduce emissions by 50%, we will need $45 trillion world-wide by 2050, according to the IEA. Stimulus packages are being implemented in Europe, the UK, and China to help implement and boost a new low-carbon economy.

Q: Since gas prices have recently gone down, what does that do to people’s choice to invest in renewable energy?
Emily: As energy prices come down, people will still be investing because of regulatory support. Subsidies and mandates will provide a “softer landing” for the renewable energy sector. The prediction is that people will still realize the necessity of investing.

Q: Is there a chance that NYC cabs may shift to being electric powered cars, in the coming years?
Rohit: The options of plug-in and electric cars are still being considered by the government in terms of their feasibility. The number of hybrid cabs is increasing, even as fuel prices drop. The city debated the idea of giving free parking to citizens driving hybrid cars, but decided not to do this, since it was predicted that this may encourage personal driving in the city.

Q: How do we convince the public that they should not drive more because gas prices have gone down?
Rohit: One option would be a higher gas tax. The problem is that other parts of the country do not necessarily see the long term benefits of driving less. There needs to be a rethinking of the way federal funding for transportation is allocated. Right now funds are allocated based on vehicle miles traveled. This system needs to be changed, but it must be done in a way that does not make rural/less dense states feel disadvantaged.

Q: There are several problems with the implementation of the public-private alliance, what are some of the ways we can unclog this quagmire?
Rohit: There are clear problems with the current relationship between the public-private spheres. For starters, there need to be a clear revenue stream that matches the investments made. It is important to remember that often times, when the public sphere is concerned, it is the public and not the bureaucracy that holds things up. Also, the private sector must bring more to the table than just financing.

Q: We are clearly experiencing earth changes, not just climate changes. How do we finance what’s coming? Do we need a new form of economy, and can there possibly be a win-win situation? Will we perhaps follow Ecuador’s credit system based on nature’s production of wealth?
Rohit: We are entering a new era of corporate social responsibility. We need to look at new opportunities. Of course, there needs to be investment for there to be return. Governments must be interested in helping the people. It is not possible to overemphasize the importance of flexibility and creativity. We must find a new way of aligning interests and regulation.

VI. NEWS

WNSF and Chinese partners launch project and competition in Beijing WNSF Executive Director Ann Goodman is appointed advisor to Green Spaces competition for social entrepreneurs in NYC

VII. THE WOMEN’S NETWORK FOR A SUSTAINABLE FUTURE

WNSF provides a forum for business and professional women to congregate, reflect, and act on the converging issues of corporate social responsibility and sustainable development. Through meetings and simple electronic support tools, the Network aims to facilitate the exchange of experiences and best practices on these vital workplace issues. By creating a new network of executive women, the Network seeks to improve responsible practices in workplaces; sensitize corporate culture more generally to issues of sustainability and social responsibility; and encourage a public commitment locally, nationally, and internationally to sustainability principles.

For more information, please contact:

http://www.wnsf.org
info@wnsf.org

BOARD OF DIRECTORS: CHAIR: Kathy Robb, Esq., Partner and Head of Environmental Practice, Hunton & Williams; Marlys Appleton, VP, Alternative Investments and Sustainability, AIG; Dianne Dillon Ridgley, Director, Interface Inc. Board; Shelly Esque, VP, Intel Corporation; Karen Flanders, Director of Sustainability, Coca-Cola Co.; Joanne Fox-Przeworski, Director, Bard Center for Environmental Policy, Bard College; Ann Goodman, Executive Director, WNSF; Sarah Howell, Director, Corporate Communications, BP; Michele Kahane, Special Projects Director, Center for Corporate Citizenship, Boston College; Clair Krizov, Executive Director of Environmental and Social Responsibility, AT&T; Joyce La Valle, Senior Vice President, Interface Inc.

The Women’s Network for a Sustainable Future is a 501c3 organization. This issue of Net Notes was compiled by Kat Barnes

Copyright 2008 Women’s Network for a Susustainable Future

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Purpose in Business: Women’s Career Priorities

Posted on November 18, 2008 by wnsfwriter

VOLUME VI, NUMBER 3

Women’s Network for a Sustainable Future (WNSF)

NET NOTES From the Women’s Network for a Sustainable Future (WNSF) December 2008 Vol. VI Number 3

Contents:

I. Presentation
“Purpose in Business: Women’s Career Priorities” hosted by Deloitte, New York City, November 18, 2008

II. Presenters:
Nancy McGaw; Deputy Director, Business and Society Program, The Aspen Institute
Stephanie Quappe; Global Talent Management, Deloitte Touche Tohmatsu
Amy Brenner; Senior Manager, Deloitte Financial Advisory Services LLP

III. Key Findings

IV. Presentation

V.Next Events
February 12: Luncheon panel on “Economic Crisis and Climate Policy: Risks and Opportunities,” hosted by Swiss Re in New York City

Spring 2009: WNSF’s first West Coast Summit
Details and registration at http://www.wnsf.org

VI. News
WNSF and Chinese partners launch project and competition in Beijing
WNSF Board member Shelly Esque is promoted to Vice President at Intel
WNSF Executive Director Ann Goodman is appointed advisor to Green Spaces competition for social entrepreneurs in NYC

VII. WNSF Concept

I. NETWORK PRESENTATION

The luncheon panel, called “Purpose in Business: Women’s Career Priorities,” focused on businesswomen finding purpose in their careers. Based on a recent study, the Aspen Institute found that emerging MBA women today are putting an increased emphasis on creating social purpose in their jobs. The statistical results from the study were fleshed out with presentations by Deloitte’s Stephanie Quappe and Amy Brenner, two executives who have achieved purpose through social responsibility and their work place.

II. KEY FINDINGS

  • Businesswomen, more so than men, place value on finding purpose in their work and so are more motivated to work for a company they feel gives back to the community through social responsibility and responsible business practices.
  • Men tend to be more concerned with a company’s financial return and with furthering their career. Women, on the other hand, are more interested in finding value in their jobs and having a positive impact on society, beyond monetary gains.
  • In terms of the students’ definition of a well-run company, women place more importance than men do on all factors – except offering a high financial return to shareholders. Some factors emphasized more by women than men include attracting and retaining exceptional employees, providing excellent customer service, and producing high quality products.
  • Ms. Brenner and Ms. Quappe’s presentations demonstrated that by maintaining the drive to find or create work that makes them proud of, it is possible to combine social responsibility on the job in business.

III. PRESENTATION

Nancy McGaw presented findings from the Aspen Institute’s 2008 research summary of MBA student attitudes about business and society. Originally surveyed in 1999, MBA students were surveyed again in fall 2007. The 2007 survey was conducted at 15 leading MBA schools in U.S., Canada and U.K. Of the nearly 2000 respondents, 65% were men and 35% were women. Twenty-seven percent of those surveyed are part of Generation Y, (27 and younger).
In ranking factors that define a ‘well-run’ company, women place more emphasis than men do on all of except one: offering high financial return to the shareholders.
In selecting the top three primary responsibilities of companies, women generally place less emphasis than men do on maximizing value for shareholders and satisfying customer needs. Women are more likely to cite producing useful and high quality goods, investing in employee development, and creating value for the local community, above monetary gains.
Reputation of potential employers matters to MBA students when they are looking for a job. Seventy percent of women and 61% of men strongly agree that corporate reputation is important to them when deciding where to work. When considering the specific characteristics of potential employers, such as fair employee relations and responsible and transparent business practices, women appear to have somewhat higher standards than men do.

The executive summary of this MBA student attitude research findings is available at: http://www.aspencbe.org/socuments/ExecutiveSummaryMBAStudentAttitudesReport2008.pdf.

Stephanie Quappe began her career in the banking industry in Germany 15 years ago. While the job utilized her business degree, she did not find meaning in the work and traveled abroad for a year. Through her travels, she was exposed to cultural diversity and the connection between business and culture. Through an international MBA and work in Europe and the United States, she collected international experience and started her own cross-cultural consulting firm, sponsored by the German government. She advised companies on cultural diversity and how to appreciate and use the diverse backgrounds of their employees and co-workers to develop leaders with a global mindset.
Moving to the US in 2005, she began working for Deloitte in Human Capital Consulting and participated in the International Business Resource Group, a diversity and inclusion employee network, founding the International Buddy Program (I-Buddy), which pairs internal employees with international workers. She also trains internal employees in cultural diversity. Since 2008 she is a manager in the Deloitte Touche Tohmatsu talent management team, responsible for global diversity and inclusion. Through Deloitte, Stephanie has found a way to combine her knowledge and experience in business with her passion for cultural diversity, along the way boosting employee satisfaction–and her own feeling of making a difference in the firm and the world.

Amy Brenner followed in the footsteps of a family anchored in the liberal arts, majoring in history while in college. After her junior year in Paris, however, she decided to focus on international business and began her career at AIG as a political risk underwriter insuring investments in developing countries. She soon learned she needed a more quantitative background in order to advance in her career and returned to school for a joint MBA/Master of International Affairs degree, which would combin her passion for international economic and community development with the finance skills she needed.
After business school, Amy worked at PricewaterhouseCoopers on international mergers and acquisitions and later at Marsh & McLennan on strategy and new product development. At the same time, she did a lot of volunteer work and participated on not-for-profit boards in order to give back to her community. Eventually, she took time off to do volunteer work in Brooklyn to figure out how to more effectively combine her interests in economic and community development with business.
Amy joined Deloitte three years ago, first in an internal strategy and new product development role and now as the leader of the Sustainability practice for Deloitte Financial Advisory Services LLP in the Northeast. She currently helps companies measure the soft and hard benefits of their sustainability and social investment programs, demonstrate that such programs can add value, and more effectively allocate resources to such programs. Since joining Deloitte, Amy has been able to use her business background to have a positive impact on her community and environment.

AUDIENCE SMALL GROUP DISCUSSIONS
Guests then discussed in groups of two or three the “one moment” in their career that influenced them to take on initiatives that fulfilled their personal passions and helped them find purpose in their work – and to consider specific steps they could take to get on the pathway toward finding more meaning in their work.

  • Several participants mentioned that a defining moment came when they realized that corporations can give to society as well as be financially successful.
  • Others mentioned finding internal supporters of ethnic, racial and gender diversity as a key moment.
  • Still others stressed the importance of working in a company that’s “up front” about its policies and inclusive or representative of the population at large.
  • One discussant mentioned the importance of having conversations about “gaps” between purpose and job, raising questions such as:
    • Is there a peer community?
    • Is the corporate culture a good fit?
    • Is the job type a good fit?

IV. NEXT EVENT

WNSF’s next luncheon panel, “Economic Crisis and Climate Policy: Risks and Opportunities,” will be hosted by Swiss Re in New York City on February 12, 12 noon to 2pm. Details and registration at WNSF’s web site: http://www.wnsf.org

Look for your email invitation to WNSF’s first West Coast Summit, to be held in Silicon Valley in Spring 2009. Details will be posted shortly on the WNSF web site.

V. NEWS

In December in Beijing, WNSF and Chinese partners launched a sustainability competition for Chinese businesswomen, the centerpiece of a two-year-old, ongoing sustainability dialogue, exchange and outreach for US and Chinese businesswomen.

WNSF Board member Shelly Esque was promoted to Vice President at Intel, where she is one of a handful of women to have achieved that position.

WNSF Executive Director Ann Goodman has been appointed advisor to the NYC-based Green Spaces competition for environmental entrepreneurs in NYC. See details of the contest at http://www.greenspaces.nyc.com

  • In December, WNSF spoke at the launch of a sustainability competition for Chinese businesswomen, All members are encouraged to join the Leadership Circle, which is a way to enrich sustainability leadership skills of women and an opportunity to network with businesswomen who are also interested in sustainable leadership.
  • Companies can get involved by volunteering to host a luncheon.
  • There will be another luncheon in early February; See events posted on WNSF’s web site (www.wnsf.org) and stayed tuned for more information.
  • WNSF board member Shelly Esque was recently named Vice President for Intel Corporation.

VI. THE WOMEN’S NETWORK FOR A SUSTAINABLE FUTURE

WNSF provides a forum for business and professional women to congregate, reflect, and act on the converging issues of corporate social responsibility and sustainable development. Through meetings and simple electronic support tools, the Network aims to facilitate the exchange of experiences and best practices on these vital workplace issues. By creating a new network of executive women, the Network seeks to improve responsible practices in workplaces; sensitize corporate culture more generally to issues of sustainability and social responsibility; and encourage a public commitment locally, nationally, and internationally to sustainability principles.

For more information, please contact:
Ann Goodman, PhD
Executive Director
WNSF
http://www.wnsf.org
info@wnsf.org

BOARD OF DIRECTORS: CHAIR: Kathy Robb, Esq., Partner and Head of Environmental Practice, Hunton & Williams; Marlys Appleton, VP, Alternative Investments and Sustainability, AIG; Dianne Dillon Ridgley, Director, Interface Inc. Board; Shelly Esque, VP, Intel Corporation; Karen Flanders, Director of Sustainability, Coca-Cola Co.; Joanne Fox-Przeworski, Director, Bard Center for Environmental Policy, Bard College; Ann Goodman, Executive Director, WNSF; Sarah Howell, Director, Corporate Communications, BP; Michele Kahane, Special Projects Director, Center for Corporate Citizenship, Boston College; Clair Krizov, Executive Director of Environmental and Social Responsibility, AT&T; Joyce La Valle, Senior Vice President, Interface Inc.

The Women’s Network for a Sustainable Future is a 501c3 organization.
This issue of Net Notes was compiled by Kat Barnes
Copyright 2008 Women’s Network for a Sustainable Future

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Soft Law in CSR

Posted on June 1, 2008 by wnsfwriter

VOLUME VI, NUMBER 2 New York Luncheon Panel Soft Law in CSR: How Voluntary International Standards Frame CSR

Sponsor: Hunton & Williams, LLP

Speakers:

Kathy Robb, Partner, Hunton & Williams LLP

Ira Feldman, President & Senior Counsel, Greentrack Strategies

Usha Wright, ITT Corporation

I. Network Presentation Key Findings Perspectives

II. What’s New

III. The Women’s Network for a Sustainable Future

I. Network Presentation

WNSF’s NYC Luncheon Panel focused on the growing use of voluntary standards in corporate social responsibility (CSR). Voluntary standards are an example of ‘soft law.’ As applied to CSR, these standards respond to stakeholder expectations of environmental and social policies and practices for which companies are held accountable and which are becoming norms in their own right. The role of voluntary principles in advancing CSR is becoming increasingly important as a “social license to operate.” The creation of ISO 26000 is the current effort of an international multi-stakeholder process to develop guidance with respect to social responsibility principles and best practices, not only for corporations, but for all types of organizations. ISO, the International Organization for Standardization, has decided to launch the development of an International Standard providing guidelines for social responsibility. The guidance standard will be published in 2010 as ISO 26000 and be voluntary to use. WNSF panelists explored the evolution and impact of soft law in CSR, how the array of existing standards and corporate positions influence them, and how they, in turn, influence corporate behavior.

Key Findings

Corporations and their stakeholders are now leading socially responsible initiatives and are either creating or adhering to so-called “soft law.”
Soft law fills the void where government action and regulation may not have kept pace with globalization. Especially in new or innovative fields, such as CSR, soft law tends to precede – and perhaps pave the way for – hard law. While organizations have no formal liability for failure to adhere to soft law, their reputation is paramount, so even without any threat of legal consequences, companies that reject soft law may risk losing competitive advantage, market image or even financial strength. Soft laws are not necessarily a final solution, but can be a means to self-governance or self-regulation in a rapidly changing world. There are risks to the growth in popularity of soft law, especially in developing countries with a nascent legal system, or in complex, multi-stakeholder settings, where stronger regulations may be needed to protect some stakeholders. Still in development through a multi-stakeholder process, the ISO 26000 guidance may help to align various existing standards and protocols (Global Compact, ILO, Declaration of Human Rights, AA1000, SA8000 and the Global Reporting Initiative). Perspectives moderated by Kathy Robb

Kathy Robb (KR), partner at Hunton & Williams and head of its environmental practice; co-founder of WNSF and the current Chair of the Board

Ira Feldman (IF), founder, president and senior counsel of Greentrack Strategies, a consultancy focusing on strategic environmental management and sustainable business practices.

Usha Wright (UW), formerly Senior Vice President of Global Workforce Strategies at ITT Corporation, an engineering and manufacturing firm specializing in industrial products.

UW – The journey of the business sector through the world of hard law to soft is one of battling chaos to responsibility and proactive leadership. Lee Scott, of Wal-Mart, is an example of such proactive leadership. By pledging to cut energy by 25 per cent, holding suppliers to higher ethical standards and delivering good healthcare systems to employees of other business, Wal-Mart has not only exemplified proactive leadership – but delivered on the pledge. In selling millions of compact fluorescent light bulbs, they obviated the need for three coal power plants. That is a big impact entity which raises the question – is business going to solve problems that government cannot? This is a fundamental shift – business used to be the bad boys – restrained only by draconian laws. Now we look to them for leadership and activism. Historically, the relationship was that business was good and regulation was bad for business – the desire to fight any and all regulations is now changing. Why was it the case? Cost of compliance? Ignorance of impact? The hard laws were structured in such a way to command and control, to impose punitive monetary fines, which only served to validate the notion that regulation was bad. Remember “What is good for GM is good for the country?” Regulating for social and environmental good was perceived as bad due to the cost to business, which in turn was bad for society. There was no place for social good in pure capitalism. It was an outdated notion. The revolutionary concept is that now business addresses social problems and publicly pledges to contribute to improve society and the environment. The NGOs tried for so long to get corporations to move beyond compliance. The CERES principles – ITT being one of the subscribers – encouraged the beneficial association. Now ITT goes to NGOs to explore concepts – and understand how NGOs react – and vice versa. This association helps shape ITT strategies and ITT helps NGOs understand business drivers. The UN Global Compact, ISO 26000 and other loosely categorized soft laws are gaining prominence and threaten relevant hard laws on the books that have been unchanged for decades. This is worthy of our consideration.

IF – For the last 16 years I have worked exclusively in the “beyond compliance” niche – what I prefer to call strategic environmental management and sustainable business practices. Other related concepts are: “triple bottom line,” CSR, and (as the financial sector has come to call this same bundle) Environment, Social, Governance (“ESG”). If, as Usha mentioned, soft law threatens hard law – it is important to understand that some believe this is actually a positive development while others, unfamiliar with these emerging trends, feel threatened by it. In preparing with Kathy and Usha for this session, it is clear to us that no one is sure exactly what soft law is. In fact, many take the position that soft law is not law at all – but rather a set of social norms rather than legal norms. Others distinguish between treaty law and non-treaty law as applied to states, where international treaties and agreements are viewed as hard, but other pronouncements such as UN General Assembly resolutions are soft law. In this session we are taking a different approach to soft law in the context of CSR. What we are really talking about is change – a transition to sustainability. We have experienced rapid change in business and industry, in legal practice, and in the global economy – that is what is driving the evolution of soft law. In the U.S., the transition phase may last 30-50 years to move towards sustainability. But, we can not get there using the same tools, policies, institutions that we have now. What we have been seeing is a blurring of lines between the public sector and the private sector. We are all familiar with not-for-profits that deliver services similar to for-profit organizations. In this context we are seeing the emergence of soft law in the form of voluntary standards, codes of conducts, labeling, voluntary reporting and disclosure. The traditional dualistic view of regulator and regulated community is no longer adequate. Organizations no longer need just a regulatory permit, but also a “social license to operate.” With the use of soft law in CSR we are seeing a much more complex stakeholder dynamic, one in which multi-stakeholder dialogue and collaborative governance are important. One of the extraordinary aspects of soft law is the role it plays vis a vis hard law. It is useful to view soft law under CSR as the precursor or proving ground for hard law for future regulation; an equally valid perspective here is to envision a continuum of soft law to hard law. In the US we are still unfamiliar with concepts like self- regulation, private law and co-regulation, but there are already many examples in the EU that we can discuss further, such as EMAS and the Dutch sector-specific covenant approach. Closer to home, EPA’s Performance Track program can be seen as an example of voluntary regulation or co-regulation.

KR – I get worried as a lawyer about soft law. Law is something that when good is definable, it’s written down, with expectations everyone knows, put one on notice and enforced. Soft law is the opposite of all those things. Wonderful concepts in certain applications such as CSR or innovation areas with rapid change or climate change which has an unknown future and no legislative consensus – in these areas soft law could help. In practice, an example would be the Equator Principals which were used by banks for due diligence. That is a successful application of a group coming together to self-regulate. REACH – the EU regulations on chemicals and their safe use is another example. I worry about REACH – it’s a very comprehensive, complex, structure. The details are not fleshed out and those details will be in soft law. In the U.S., the laws surrounding the Colorado River – a compendium of treaties and opinions from courts, compacts and contracts all allocating water among seven States. The process went forward in 1920s, developing over time through a lot of different writings. In December, they announced adjustments to those allocations. The fundamental problem with the river is that they originally set the allocation based on what they thought was the norm. However, that amount of water they allocated was essentially flood levels. Now, they know that was not the norm, but it took time to reach consensus that drought was the norm, which came in part from the famous tree ring studies in the last 4 years. That’s what I think about when I think about soft law.

KR – Let’s talk about ISO 26000.

IF -There is a new draft of ISO 26000 which appeared last week and is currently in a comment period. There is at least another 18 months before the final product sees the light of day. The ISO standard is based on social responsibility as ISO Geneva decided early on to drop the “C” in CSR to make clear that social responsibility is applied to all stakeholders – not just corporations. The six defined categories of stakeholders are consumers, industry, NGOs, labor, government, and SSRO (service, support, research, other). The seven core issues are environment, human rights, labor practices, fair operating practices, organizational governance, consumer issues and community involvement/society development. Taken together, these seven issues are the core bundle of social responsibility obligations for organizations. In the latest draft, the ISO 26000 standards proposes the following as key principles for social responsibility: legal compliance, respect for intellectual instruments, recognition of stakeholders, accountability, transparency, sustainable development, ethical conduct, precautionary approach, respect for human rights and diversity. The ISO 26000 standard is not drafted as a management system standard; organizations will be able to select implementation options tailored to their own needs.

KR – What is the intent of the group putting this together and how is it to be used by those who get the document?

Adam Greene, U.S. Council for International Business – The general idea is to provide guidance and that’s essentially it. I would call it an awareness raising instrument more than anything else.

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II. What’s New

WNSF INTERNS WNSF welcomes college and university interns. Those who are interested should send a bio and writing sample to info@wnsf.org. Recent ‘graduating WNSF interns include:

Monika Kumar, WNSF’s former intern for two years, starts at the World Bank as Greening Coordinator, Corporate Environmental and Social Responsibility in a program responsible for identifying opportunities to reduce the environmental footprint of the Bank’s daily operations by managing carbon emissions, energy use, waste, water, and procurement, and for publicly reporting on that footprint annually.

Jen Peckman, another former WNSF intern, has spent the past year and a half as a consultant at the NYC office of Corporate Citizenship, a specialist corporate responsibility consulting firm. She manages US community investment related client projects and manages the LBG USA a group of companies working together to measure Corporate Community Investment (CCI).

Maria Hinostroza My new position is Program Manager for Sustainable Development at the UN Foundation.

NEXT WNSF EVENT The 2008 WNSF Businesswomen’s Sustainability Leadership Summit “Leading Change: How to Champion Sustainability in Your Company” will take place in New York City on October 2, 11:30 AM – 6:00 PM.

Please watch your email or go to the WNSF website (www.wnsf.org) for more information and to sign up for this and other upcoming events.

Back to top

III. The Women’s Network for a Sustainable Future

WNSF provides a forum for business and professional women to congregate, reflect, and act on the converging issues of corporate social responsibility and sustainable development. Through meetings and simple electronic support tools, the Network aims to facilitate the exchange of experiences and best practices on these vital workplace issues. By creating a new network of executive women, the Network seeks to improve responsible practices in workplaces; sensitize corporate culture more generally to issues of sustainability and social responsibility; and encourage a public commitment locally, nationally, and internationally to sustainability principles.

For more information, please contact: Ann Goodman, PhD Executive Director WNSF http://www.wnsf.org info@wnsf.org

Board of Directors CHAIR: Kathy Robb, Esq., Partner and Head of Environmental Practice, Hunton & Williams; Marlys Appleton, VP, Alternative Investments and Sustainability, AIG; Dianne Dillon Ridgley, Director, Interface Inc. Board; Karen Flanders, Director of Sustainability, Coca-Cola Co.; Joanne Fox-Przeworski, Director, Bard Center for Environmental Policy, Bard College; Ann Goodman, Executive Director, WNSF; Sarah Howell, Director, Corporate Communications, BP; Michele Kahane, Special Projects Director, Center for Corporate Citizenship, Boston College; Clair Krizov, Executive Director of Environmental and Social Responsibility, AT&T; Joyce La Valle, Senior Vice President, Interface Inc.; Anita Roper, Director of Sustainability, Alcoa Corp.; Deborah Sliter, Vice President of Programs, National Environmental Education & Training Foundation. The Women’s Network for a Sustainable Future is a 501c3 organization. This issue of Net Notes was written by Liza Pullman.

 

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Fifth Annual Businesswomen’s Sustainability

Posted on February 10, 2008 by wnsfwriter

Leading Change: How to Champion Sustainability in Your Company Sponsors: JPMorgan Chase, The Coca-Cola Company, AIG, AT&T, Intel, Interface, The McGraw-Hill Companies, Pfizer

Thanks to: Framework:CR, Rivanna, and Shital Patel

Introduction:

WNSF chair Kathy Robb and executive director Ann Goodman, PhD, launched WNSF’s fifth annual Businesswomen’s Sustainability Leadership Summit by drawing attention to the recent financial crisis and the opportunities it brings to make positive change in organizations. Ms. Robb aptly quoted Darwin: “It’s not the strongest of the species that survives, but the one who responds best to change.” She asked participants to reflect on the economic changes of recent weeks and how companies can adapt. Dr. Goodman noted that in the six years since WNSF was launched, sustainability has become a driver of business change, and that the current financial crisis highlights the opportunity to achieve a new balance of economic, environmental, and social progress and to rebuild from a more sustainable base.
She then introduced the discussion topics for the summit, which were defined based on feedback from attendees of last year’s summit.

Panel: How to Build a Culture of Sustainability
The panel moderator, Professor Anat Lechner at New York University’s Leonard N. Stern School of Business and an expert on organizational development, called the panelists “pioneers,” in thatJP they had blazed a trail of business responsibility and sustainability in their companies, in particular often addressing the cynicism of colleagues who did not see these as key business values. She then introduced the distinguished panel of speakers:

  • Marlys Appleton, Vice President, Sustainability, at AIG Investments
  • Lybra Clemons, Director of Global Diversity and Inclusion at American Express
  • Amy Davidsen, Director of the Office of Environmental Affairs at JPMorgan Chase
  • Shelly Esque, Director of Global Corporate Citizenship at Intel Corporation

Professor Lechner posed the following questions to the panelists: 1. What is the sustainability story at your company? What steps did you take to develop the culture of sustainability? What measurements were used?

Ms. Appleton: AIG Investments, has been working on sustainability since 2005 in a multi-year, multi-stage effort. Sustainability for investments is defined as the integration of environmental, social, and governance (ESG) factors into the investment decision process. Ms. Appleton, whose background is risk and valuation, first become involved in sustainability when, as part of an elite concept team, she was asked to recommend business responses to climate change, greenhouse gases, and socially responsible investing. This team of six managers completed a four-month empirical study that benchmarked sustainability activities of AIG Investments’ peers and competitors. Based on this review, the group recommended to the CEO a sustainability perspective for investments, which was subsequently approved by the AIG board of directors. Based on her leadership in this team and her background in performance management, Ms. Appleton was appointed by the CEO to lead the effort to embed principles of sustainability at AIG Investments.

Ms. Clemons: American Express Diversity and Inclusion incorporates age diversity, gender, sexuality, and race. Ms. Clemons is responsible for the effort in offices in the United States, Europe, Asia, and Latin America. Currently, the sustainability effort is focused mainly on environmental work, but it is built on the efforts established through the firm’s diversity initiatives.

Ms. Davidsen: Ms. Davidsen noted that she saw the potential for sustainability at JPMorgan Chase in 1999 when she was working with philanthropies and began dialogues with senior management in the company, including the chairman of the investment bank. Over the years, she sent e-mail tracking sustainability trends at financial services institutions. In November 2003, the executive committee created the department of environmental affairs. Ms. Davidsen focused on risk management, business opportunities, and strategic partnerships to establish the sustainability programs.

Ms. Esque: The founder of Intel, a conservationist, ingrained the idea in the fabric of the company that environmental stewardship would be underlie our manufacturing and product development. In 1997, a decision was made to incorporate the company’s philanthropy efforts into a sustainable, business-driven model too. This year sustainability was incorporated into the corporate-wide employee bonus system. 2. What concrete steps did you take to establish sustainability in your companies?

Ms. Appleton: While much progress has been made, there is still work to be done to execute on AIG Investments’ commitment to sustainability. A sustainability steering committee of analysts, vice presidents, and managing directors was drawn from the various business units: fixed income, equities, real estate and alternatives as well as support functions such as marketing, IT, and legal and compliance. In the first year the committee met twenty-five times and is currently meeting about every six weeks. A guiding document of roles and responsibilities was created which distributed the responsibility for the success of projects to the business units and stated that each member’s role is to contribute to the success of the entire initiative. Steering committee members were to be the leaders and act as champions for sustainability within their asset class. An early conclusion of the business units was that education and skills development were needed in order for the analyst and portfolio managers to integrate sustainability or ESG analysis into their due-diligence process. Another early step was a survey of knowledge to assess where people were in their understanding of sustainability, followed by a major education program that included ongoing skills development, a focus on thought leadership, the connecting of sustainability to clients’ needs, and an affiliation with external NGOs. The process of reporting and collecting metrics has been challenging due to the different nature of the different approaches to integrating ESG. Another important point is that each business unit must have flexibility to integrate based on their own internal processes and their differing time horizons but must show how they are complying with the policy. Another element of performance is the reporting of progress to executive management on a regular basis.

Ms. Clemons: The CSR discussion addressed issues very similar to the those addressed in the diversity discussion that occurred ten years ago. These include how to communicate; what is the business case; how to tie into compensation; and how to talk to business leaders and keep them engaged. Communication is valuable for attracting key talent and articulating the case for CSR.

Ms. Davidsen: JP Morgan Chase created an oversight committee, headed by very actively engaged people that were able to work sustainability and environmental initiatives into lines of business. It took a long time to find the right people to involve, and the effort is still a work in process. The committee reports to the board quarterly.

Ms. Esque: Intel began reporting environmental performance in 1994. While reporting drives change, until recently Intel’s public relations people were neither involved in nor aware of the reporting effort. Externally, Intel is quite well known for its sustainability efforts; Intel has found it much more difficult, however, to communicate its work internally. Intel believes in getting input from stakeholder communities. In particular, the social investing community has taught the company a lot in establishing their goals. 3. What are the challenges of making the culture shift and institutionalizing sustainability in your companies? What were the areas that held the most tension?

Ms. Appleton: Early on, the CEO took time to gain buy-in from his direct reports, which is critical for success. It was sometimes a challenge to speak to deal makers to help them to understand that they might be overlooking some of these emerging values in the market place. We went back to the business case–the impact that sustainability would have on their portfolios and the performance of specific investment holdings. To overcome the challenges, sustainability leaders have to be ambassadors or champions of sustainability. The culture is one in which you have to go out of your way to establish relationships and continue to emphasize the business case underlying sustainable investment practices, and further that integrating ESG factors is entirely consistent with seeking the best risk-adjusted returns. Internal messaging and terminology is important as it continues to reinforce the value and to also tie our activities to the client and investment consultant community.

Ms. Davidsen: The culture has changed over the years, given the many acquisitions and different leadership. Currently there is a lot of diversity of thought, which makes the effort a little easier. She invested a lot of energy in developing individual relationships with management team.

Ms. Clemons: American Express has an amazing culture. People are supportive, as the company is built on relationships. The corporate culture is key to moving sustainability forward. It is still important, however, to translate the sustainability effort to spend. How will impact the bottom line?

Ms. Esque: The Intel culture is about data, and results, an atmosphere of requiring employees to “prove it” meaning share the data that makes your case. Executives question everything, and want data, facts, and figures. Her team was able to show the data easily through the environmental initiatives. Competition and raising expectations are key, and Intel does a lot of benchmarking and sharing stories of what happened to competitors. 4. How does sustainability help in times like this?

Ms. Esque: Intel is not directly affected by the current times but was affected by the dot-com bust. Companies must focus on long-term decisions and their impacts and provide justification for short-term planning. If sustainability is truly embedded in a culture, it is a good thing to fall back on in difficult times.

Ms. Davidsen: JPMorgan Chase has a strong culture of ethics–the organization has been able to weather the current crisis because it did not take on a considerable amount of risk.

Ms. Clemons: American Express is stable, but the economy is not, so morale is down. It is critical at this time to communicate what a company is doing related to sustainability and tie it to employee satisfaction. Right now, it is the “right thing to do,” which helps to provide a productivity boost.

Ms. Appleton: We believe that the value of a company is based on cash flow three years and beyond and therefore doing our best to understand if a company is sustainable or not is important. Poor governance and a failure of risk management are major contributing causes of the current financial crisis. We have learned that good governance at the board, department, and project level is key to preventing another major failure such as we see today. Many people have come to particularly appreciate the value of understanding good governance. While we may not expect good governance to generate alpha for us, we strongly feel it can help us manage beta or risk, which is key to good performance. 5. What one focus point can people use to implement a sustainability program?

Ms. Clemons: Attracting key talent is vital to implementing a sustainability program. Generation X was shaped by the Gulf War and international events. Generation Y is focused on global issues such as climate change, and members of this group are collaborative, multicultural, and impatient. If companies want to create a dialogue with these groups, you will see a change in the culture of a company. What is important to Generations X and Y–flexibility, a company’s sustainability and critical philanthropic efforts, and then money.

Ms. Esque: If you have executives that aren’t on board with your program, you should look to understand what is important to them and use that as leverage to get them engaged.

Ms. Davidsen: Talent is critical. The sustainability concept becomes more ingrained as newer people come in. It is time to embed it into the culture.

Ms. Appleton: Employees are a key stakeholder. Management that does not pay attention to employees will not survive. It is also important to have a consistent internal message.

Strategic Café Dialogues

Following the panel session, the format switched to café dialogues facilitated by Dianne Culhane, former Group Director, Internal Communications, The Coca-Cola Company. The conference attendees formed groups of four and discussed one of the six summit topics noted below. The groups rotated every twenty minutes, allowing attendees to participate in three separate discussions. At the conclusion of the café dialogues, the plenary group reconvened and the small-group leaders shared discussion highlights.

The topics and a sample of the takeaways of the café dialogues are as follows:

A. What structures, practices, and knowledge systems in your company encourage or inhibit a culture of sustainability?

  • Inhibitors include a lack of understanding by senior leaders of how sustainability connects to the core business model, lack of connection to the mission or core values of the organization, and the belief that the individual or organization cannot make a difference.
  • Cultures of sustainability can be encouraged by integration into the core business strategy, finding and nurturing champions to launch the dialog within the organization and inclusion of sustainability into performance management.
  • It may be useful to look to the European community to understand what it has done.

B. What is the role of leadership/management in building a culture of sustainability? What opportunities do leaders see in a culture of sustainability? What barriers exist, and how have successful leaders used these barriers to their advantage?

  • Management is responsible for creating interdisciplinary sustainability leadership roles so that sustainability can be integrated throughout the organization.
  • Leadership can model stewardship, support sustainability initiatives as producing value to the organization, and promote sustainability as profitable a long-term Return on Investment.
  • The current economic downturn can be perceived as a barrier to encouraging sustainability or as an opportunity to show leadership and differentiation by applying the principles of sustainability within organizations.
  • Leadership can be helpful in supporting product innovation to reduce cost and risk, enhance reputation and build deeper relationships.

C. In a culture of sustainability, what are the best and worst ways/approaches to setting goals and measuring results?

  • It is not possible to look at everything, but it is important to set boundaries and to make clear why you choose what you are addressing and measuring.
  • One key approach is to make sure that knowledge is shared and the culture is embedded in the organization, especially given that the champion sometimes leaves the organization.
  • Look at reporting standards, which can provide guidance on how to be a leader within industry. Establish management systems, which spur continuous improvement.
  • Gain input and make the process inclusive of stakeholders, in particular employees.

D. As you build a culture of sustainability, how do you move from the ideal to the real? What is the ideal? What is real?

  • It is very important to have a vision, to connect the organization and business strategy to the vision, and to connect the vision to the execution.
  • Champions of the program can be a catalyst for real change. Reward them and give them voice. Empower and educate all within the organization.
  • The current reality is still the importance of demonstrating a return on investment.

E. How do you use communication effectively in changing culture? What leadership communication changes culture? What could be done to ensure communication moves up, down, and across the organization?

  • Participants agree that new technology, advanced media, and webcasting are useful tools in effective communication. These may help in creating an interactive platform for communication and inspire dialogue
  • Listen to stakeholders, tailor the message to your audience, and be sincere. Lead by example, because actions communicate as well as words.
  • There must always be substance behind communication. Utilize statistics to support the message.

F. How do we give voice and support to the next generation of sustainability leaders? What do they need to be successful?

  • The younger generation is pushing change in organizations, so it is important to listen to them, encourage their feedback, and create opportunities for engagement, including recognition of the value they bring and creation of mentoring and facilitating networks for additional development.
  • Engage in partnerships and dialogue to promote sustainable education.

Keynote Speaker
Gail Blanke: How to be a Champion for Change
Gail Blanke, CEO, Lifedesigns, began her discussion by drawing parallels between a ride on Disney World’s Space Mountain and today’s economic turmoil. She recalled how she had never been so terrified in her life on Space Mountain; never quite knowing when the ride was going to go up or down. She said that this is how most people feel in corporate America today, not knowing when the next high or low is going to hit. Ms. Blanke posited that we’re not meant to be comfortable in our lives and in our jobs – we are meant to change. Those that can adapt to or create change are the ones who make a difference.

Ms. Blanke shared five steps for becoming a champion for change from her book, Between Trapezes: Flying into a New Life with the Greatest of Ease:

Step 1: Tap into the incredible power of a vision. Ms. Blanke asked the participants what their vision is, and about what they are passionate. She asked them to understand how powerful a vision can be in being a champion for change. Motivation comes from vision. She shared how Walt Disney directed the castle to be built first when opening a new theme park. When you see and feel the magic, you have the motivation to build something beautiful. She warned not to be bogged down with tactics or information when constructing your vision, as this will not help you to achieve it.

Step 2: Let go. Ms. Blanke asked the participants to be aware of what keeps them from achieving their vision. This old view of the world and yourself–regrets, resignation, anger, being right, the fear of not being recognized, the fear of failure–is part of the past. Ms Blanke challenged the participants to leave that vision in the past and to discover who they are now. She also challenged each participant to go home and throw out fifty things, whether they are physical or mental things that keep them from taking action. She explained that courage to do something bold comes with action. Referring to the analogy of her best-selling book, “Between Trapezes”, she said that the greatest fliers are the greatest fallers. Great trapeze artists do not confuse falling with failing. Sometimes the new trapeze bar doesn’t show up until you let go of the old one.

Step 3: Make a list of defining moments. Ms. Blanke asked participants to think of moments throughout their lives when they found out they had something they didn’t think they had–perhaps a moment in which they won, or lost, or in which they changed as a person. She also asked participants to look back into the life of their organizations, to assess their companies’ defining moments. There would be a pattern in these moments, a definition of courage. She suggested they utilize the knowledge of this pattern to find the stamina to be bold, to recreate these moments, and to move forward.

Step 4: Adopt an entrepreneurial spirit. Entrepreneurs are passionate, risk-taking, and agile. They thrive on change. Rigidity is the entrepreneur’s enemy. Be agile, stay light.

Step 5: Understand the difference in life between fact and interpretation. Ms. Blanke explained that fact is a demonstrable thing, inarguable. Interpretation is something we make up about the fact, which becomes our truth. When something happens, we slap an interpretation on it, and that becomes our truth, whether it is a crisis or an opportunity. She noted that each of us gets to decide if something is a crisis or an opportunity. When making the interpretation, it is important to assess the fact and decide what you are committed to.

Ms. Blanke concluded with the thought that this is exactly the right time to make a difference. She challenged the audience to step into the change and inspire others to join them.

The Women’s Network for a Sustainable Future would like to thank all of the summit speakers and participants for attending this year’s event. We are grateful to our host and our sponsors for making this summit possible, and for their continuing support of our organization.

WNSF Summit notes compiled by Framework:CR.

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The New Chain Gang: Sustainable Suppliers

Posted on February 1, 2008 by wnsfwriter

Host: Hewlett-Packard Company
Speakers: Anna Walker, Bonnie Nixon

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PlaNYC 2030: The Mayor’s Sustainability Plan to keep New York Competitive

Posted on November 20, 2007 by wnsfwriter

November 2007 Volume V, Number 6

Speakers:
Laurie Kerr, Senior Policy Advisor for New York City’s Office of Long Term Planning and Sustainability
Elizabeth C. Girardi Schoen, Senior Director, Environment, Health & Safety, Strategic Partnerships & Planning, Pfizer Inc. and a member of the Mayor’s Sustainability Advisory Board

I. Network Presentation
Key Findings
Perspectives

II. What’s New

III. The Women’s Network for a Sustainable Future
The Concept of the Network
Contact Information
Sponsorship Opportunities

I. Network Presentation

Thank you to everyone who attended the WNSF’s November luncheon panel on November 20, 2007. The event was over-subscribed and we appreciate the enthusiastic response. We would like to give a special “thank you” to our host Pfizer. Pfizer provided space and luncheon at their building in New York City. The panel provided valuable insight into how the City and Pfizer are advancing sustainability with the long term goal of keeping New York and Pfizer competitive.

Key Findings

  • To view more information on the Mayor’s sustainability plan, please visit http://www.plannyc.com
  • Main issue facing New York today is population growth.
  • New York’s sustainability plan must include land, transportation, air, energy, water, and climate change.
  • Land goals include creating residences for almost a million more New Yorkers, while making housing more affordable and sustainable, ensuring people are within 10 minutes walking distance of a park and creating new brown fields.
  • Two water goals are: to develop back up systems for our aging water network and open 90% of NYC water ways for recreation.
  • NYC’s goal is to achieve the cleanest air quality in America.
  • A major challenge is to bridge the 30 billion dollar funding gap for required for renovations.
  • The Congestion Pricing Plan will use the money collected from increased fares to help fund improvements to transportation and congestion. The revenue from the congestion plan along with an unprecedented City commitment that the State will be asked to match, will help fund the SMART Financing Authority.
  • To stabilize demand of energy NYC will target the largest buildings and property owners through incentives, update the codes to ensure that the building stock becomes increasingly efficient, and change the City Charter to require that 10% of the NYC energy bill is devoted to retrofitting City buildings to improve their efficiency.
  • NYC plans to reduce global warming emissions by 30% over the next ten years.

Perspectives

Moderator: Ann Goodman, Executive Director, WNSF.
Speakers: Laurie Kerr & Liz Girardi Schoen

Laurie Kerr addressed the Mayor’s Sustainability Plan indicating that the impetus for the plan was the estimated million more people residing in New York by 2030. Along with people, this growth will bring enormous benefits, including: 750,000 jobs, millions more tourist, and billions of dollars in new revenue. However, if this growth goes unchecked, it could undermine all the achievements made thus far. If we don’t take action today the effects could be paralyzing. The infrastructure will be strained beyond its limits. The main problems and goals pertaining to land, transportation, air, water, energy, and climate control are:

  • Land is our most limited resource; therefore NYC has to be smart about how the issue is approached. Land goals are: to create home for almost a million more New Yorkers, while making housing more affordable and sustainable; ensure people are within 10 minutes walking distance to a park; and create new brown fields.
  • New York City has 680 miles of water front and needs to make sure water supply to the City is clean and reliable and back up systems exist.
  • Most of small rivers are fairly polluted and they want to clean up 90% of them. NYC needs to invest more than 10 billion in sewage systems.
  • The goal is to achieve the cleanest air quality in America. In some neighborhoods, asthma rates are nearly four times the national average. The goal is to eliminate 3,000 tons of soot out of the air every year.
  • Every form of energy consumption is rising dramatically and the city’s total energy bill will increase by 3 billion by 2015. To stabilize demand, NYC will: target our largest buildings and property owners through incentives, update the codes to ensure that NYC building stock becomes increasingly efficient, and change the City Charter to require that 10% of the NYC energy bill is spent retrofitting City buildings to improve their efficiency.
  • NYC plans to reduce global warming emissions by 30% over the next ten years. To accomplish that they work to increase efficiency in city buildings, increase efficiency of electricity grid, and encourage the use of more efficient transportation (particularly the business sector) such as subways and regional lines.

Liz Girardi Schoen addressed her dual roles at Pfizer and as a member of the Mayor’s Advisory Board. At Pfizer, she is responsible for enhancing internal and external partnerships related to EHS and for strategic planning. Liz is also engaged in other strategic activities such as Corporate Citizenship. Partnering with external organizations includes influencing environmental policy where appropriate for Pfizer. It is also important to keep in mind that green buildings are great opportunity for businesses and are encouraged by Pfizer and the City. Liz has served on the Advisory Board to the Mayor on PLANYC, supporting the City by contributing time and expertise in the areas of organization planning and program development, energy, climate change, green buildings and waste management.

Founded in New York City in 1849, Pfizer has a special attachment to the City, so PLANYC is of natural concern for the company. Pfizer’s environmental efforts include advancing energy efficiency and greener building policy and practice – while reducing overall environmental impact of operations. Supporting NYC in its effort to encourage sustainability more broadly is helpful to business, particularly given the institutional and political issues that can get in the way of advancing environmental responsibility. For example, Pfizer occupies several buildings in Manhattan, some of which it owns, some of which it leases. In leased buildings, a company’s energy conservation programs may not offer direct business benefit, mainly because the rent includes energy costs, which aren’t automatically cut when energy use goes down. This is a business ‘disincentive’ in tenant-owner relationships. Working with NYC, business can help to raise awareness of such stumbling blocks to environmental responsibility and advance sustainability throughout the City.

II. What’s New

Executive Director Ann Goodman spoke on behalf of WNSF in Beijing, China in fall 2007 at two conferences, one hosted by the Center for International Business Ethics and the second presented by the China Association of Women Entrepreneurs. Both talks focused on the role of women in helping business achieve social responsibility and sustainability.

III. The Women’s Network for a Sustainable Future

The Concept of the Network

WNSF provides a forum for business and professional women to congregate, reflect, and act on the converging issues of corporate social responsibility and sustainable development. Through meetings and simple electronic support tools, the Network aims to facilitate the exchange of experiences and best practices on these vital workplace issues. By creating a new network of executive women, the Network seeks to improve responsible practices in workplaces; sensitize corporate culture more generally to issues of sustainability and social responsibility; and encourage a public commitment locally, nationally, and internationally to sustainability principles.

The Women’s Network for a Sustainable Future is a 501c3 organization. Gifts are tax deductible.

For more information, please contact:

Ann Goodman, Executive Director
Women’s Network for a Sustainable Future
Please direct inquiries to: info@wnsf.org

This issue of Net Notes was written by Omalola Taiwo.

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Combating Poverty: Innovative Business Approaches

Posted on May 11, 2007 by wnsfwriter

July 2007 Volume V, Number 5

Net Contents

I. Network Presentation
Key Findings
Perspectives

II. What’s New

III. The Women’s Network for a Sustainable Future
The Concept of the Network
Contact Information
Sponsorship Opportunities

I. Network Presentation

A big thank you to those who took the time to attend WNSF’s luncheon panel on June 22, 2007 entitled ” Combating Poverty: Innovative Business Approaches” hosted by the New York Regional Association of Grant Makers (NYRAG). The session featured speakers from IBM and Deutsche Bank, as well as the co-authors of “Untapped: Creating Value in Underserved Markets,” who explored new business approaches to combating poverty in both developing and developed countries.

Key Findings

  • Success for both companies and society can come from creatively finding ways to use the company’s core technologies or businesses to further social ends.
  • Social programs can prove to be a positive way for companies to enter new markets.
  • When looking to combat poverty, it pays to keep an open mind about the poor, eschewing prejudices about the business acumen of the poor, such as whether they will repay loans.
  • One obstacle that holds companies back from programs on combating poverty is a general lack of urgency about the problem, but communities can encourage corporate accountability by raising the issue and communicating their expectations of business.
  • Alleviating poverty doesn’t mean just finding products to sell to the Bottom of the Pyramid, but also training, hiring and buying from them.
  • Getting accurate community information, adapting to local culture and changing internal business perspectives are key to corporate success in combating poverty.

Perspectives

Welcome:
– Ann Goodman, Executive Director, WNSF

Moderator:
– Michele Kahane, Director, Clinton Initiative; WNSF Board of Directors; Co-author “Untapped: Creating Value in Underserved Markets”

Speakers:

  • Gary Hattem, Deutsche Bank, Managing Director
  • Stan Litow, IBM, President of IBM Foundation, VP, Corporate Community Relations and Corporate Affairs
  • John Weiser, Principal, Brody, Weiser, Burns; Principal author: “Untapped: Creating Value in Underserved Markets”

Stanley Litow is the President of the IBM Foundation and IBM’s Vice President for Corporate Community Relations and Corporate Affairs. He heads global corporate citizenship efforts at IBM, which contributes nearly $150 million across 170 countries. Under his leadership, IBM has developed innovative technologies to: help non-literate children and adults learn to read; help people with disabilities access the Internet; create a humanitarian grid to power research on Cancer and AIDS; and develop technology to increase economic growth and small business development.
Litow discussed the topic of combating poverty in light of IBM’s nearly 100-year history. Starting as a technology company with a core business in electric typewriters, it became a global computer company.
Traditionally, the main way companies tried to combat poverty was to make contributions to causes. Now, companies are starting to recognize that building sustainable value inside the business helps build sustainable communities. But, while many companies are aware of this principle, not all recognize that employees are the core, that they are the ones involved in the community they live in and thus tie the company to the community. IBM has a past of aiding the economic development of communities within which it locates it facilities. For example, in the 1950s, the CEO of IBM was looking to see where to put a plant. The plant became a first desegregating its work force before the Civil Rights Act.
IBM’s CSR activities can be divided into two categories: microfinance and technological innovation. For a decade, IBM has invested in microfinance projects, providing its commercial investors with $80 million in return within the past two years. In addition, IBM builds upon its core value of creating innovation for customers and the world by developing technology that is tested and marketed in social settings. This technique allows for investors to recognize the innovative product, see it being utilized in the real world setting, and develop the technology to apply to other uses. IBM thus creates a brand value by being seen as an innovator. For example, . Litow has encouraged the company to find a way to use its voice recognition technology to teach reading. The project builds business value for IBM by putting its technology to a new use, testing and marketing it in social settings, and, as it is recognized by investors, developing the technology further to solve other problems—further building IBM’s brand value as an innovator.
Stanley identified three main challenges faced by IBM. One of the main challenges IBM faces as it works to be a corporate citizen is the ever-present need to justify the business value in investing in communities. While research in labs is valued by traditional businesses, working in communities is more innovative, yet not readily accepted. As explained above, IBM uses innovative technologies in social settings, allowing investors to see results before adopting it commercially. In addition, this technique is utilized as a way to enter markets.
Another major challenge is the need to recruit and retain talent. IBM currently engages employees in a virtual community called “On Demand.” Building on the process, the company now also engages employees virtually to set core values through a “Values Jam.”
Developing new markets is also challenging. IBM believes in investing in social innovation, and in the people in countries where it operates. Social programs can serve as a way to enter new markets. For instance, IBM’s first foray into India was via a corporate social responsibility program. Now the company employs 70,000 people there. IBM’s basic believe is that business value is created through: technology, people, and profits.

Gary Hattem is Managing Director of Deutsche Bank and heads its Foundation and Community Development Finance Group. He is responsible for the firm’s lending, investment and philanthropic activities targeted to disadvantaged communities and oversees the firm’s corporate citizenship activities for the Americas. Deutsche Bank is a European-based investment bank, with asset management activities primarily for the institutional market.
Gary began by explaining the increasing competition amongst banks for lending to low-income individuals. This was mainly due to their belief that their loans might not be paid back. However with the passage of the “Community Re-investment” law, banks are now required to re-invest in the communities in which they operate. And the portfolios have done very well: Deutsche Bank invested about $1 billion, writing off just $100,000 in bad loans. This kind of success now has banks competing for low-income customers. Gary identified major challenge for Deutsche Bank include: differentiating itself from its competitors, building its brand in places where the Bank is growing, and institutionalizing corporate social responsibility initiatives externally so that the community work continues even if the bank moves.
Mr. Hattem mentioned that there’s a general lack of urgency about the issue of poverty. One thing communities can do to support corporate social responsibility is to raise their own expectations of companies to encourage corporate accountability.
To overcome the challenges corporations face in implementing poverty-combating initiatives, they need to develop better metrics to measure the benefits to communities; expand dialogue across sectors, and scale partnerships. John Weiser is a founding partner of Brody, Weiser, Burns and co-author of “Untapped: Creating Value in Underserved Markets.” John initiated his remarks by alluding to the fact that companies that are visible to the public are well aware of the need to incorporate sustainability into their business strategy. However, businesses that cater to other businesses can be slower in adopting this concept. . In addition, he stressed that innovation in corporate responsibility comes not just from selling products to the consumers at the so-called Bottom of the Pyramid, but also from hiring, training and buying from them. There are already some business models illustrating the latter; for instance, the Corporate Voice for Families and fair trade programs, which aim to bring the concerns of those at the bottom of the pyramid to the fore, via proper compensation (fair trade) or lobbying forces (Corporate Voices). Of course, there are some well-known disaster stories of corporate involvement in combating poverty, such as New Century lending to sub-prime market and is now facing difficulty collecting. In another example, Andeo won contract to manage water in Puerto Rico, but walked away from multi-million dollar contract because it hadn’t accurately predicted the cost and was not able to sufficiently increase the price of water.
To avoid disasters, declared John, companies need to follow five steps:

  • Get accurate local information
  • Adapt to local culture
  • Change internal perceptions
  • Create partnerships
  • Improve local environment, e.g., education

II. What’s New

  • WNSF’s annual Businesswomen’s Sustainability Leadership Summit, this year dubbed “Sustainability and Innovation: Women’s Business Leadership,” will take place on October 2 in NYC. For registration visit http://www.wnsf.org or write to info@wnsf.org
  • WNSF will continue its China Dialogue series this fall–in Beijing. WNSF Executive Director Dr. Ann Goodman will speak on Women and Consumer Trends at the annual CSR conference, “Consumer Rights and CSR,” sponsored by the Center for International Business Ethics in Beijing. Dr. Goodman will be joined by Prof. Shi, Secretary General of the China Association of Women Entrepreneurs, featured at a WNSF luncheon panel last spring, and at whose 2006 Beijing conference on women and sustainability Dr. Goodman also spoke.
  • Stay tuned for announcements of WNSF’s next luncheon roundtable, to be scheduled this fall.

III. The Women’s Network for a Sustainable Future

The Concept of the Network

The Women’s Network for a Sustainable Future (WNSF) provides a forum for businesswomen to congregate, reflect, and act on the convergent issues of corporate social responsibility and sustainable development. Through meetings, training and simple electronic support tools, WNSF facilitates the exchange of experiences and best practices, building a community of businesswomen who can serve as powerful change agents for corporate responsibility sustainability in the US and internationally.

The Women’s Network for a Sustainable Future is a 501c3 organization. Gifts are tax deductible.

For more information, please contact:

Ann Goodman, Executive Director
Women’s Network for a Sustainable Future
Please direct inquiries to: info@wnsf.org

Board of Directors:
CHAIR: Kathy Robb, Esq., Partner and Head of Environmental Practice, Hunton & Williams; Marlys Appleton, Vice President, Investments, Sustainability, AIG; Dianne Dillon Ridgley, Director, Interface Inc. Board; Karen Flanders, Director of Sustainability, Coca-Cola Co.; Joanne Fox-Przeworski, Director, Bard Center for Environmental Policy, Bard College; Ann Goodman, Executive Director, WNSF; Sarah Howell, Director, Corporate Communications, BP; Michele Kahane, Special Projects Director, Center for Corporate Citizenship, Boston College; Clair Krizov, Executive Director of Environmental and Social Responsibility, AT&T; Joyce La Valle, Senior Vice President, Interface Inc.; Anita Roper, Director of Sustainability, Alcoa Corp.; Deborah Sliter, Vice President of Programs, National Environmental Education & Training Foundation.

This issue of Net Notes was written by Monika Kumar. WNSF thanks founding sponsors AT&T and the Ford Foundation for their generous support.

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