CSR

Environment ("E*)

• GHG, Climate Mitigants, Energy Eff., Transp., Waste generation, water mgt

Social

• Inclusion & Diversity, HuRi, Empl. educ., philantropic, Data and privacy, supply chian

Governance

• transparency, good mgt.

Elevate to next level by rolling out well-structured ESG programs to align with market expectations and investors

Driven by Bloomberg, Blackrock, SASB and others

Has 70 industry specific standards

ISO 20400 = sustainable procurement standard (not certifiable!)

ISO 2600 = guidance for social responsibility (not certifiable!)

Sust. procurement is a central tenet of SR and is envisaged that ISO20400 will complement IS26000. This is because ISO20400 directs organizations to minimize their E footprint, review their impact on HuRi and act to positively contribute to society and the economy. To this end, important practices explored in ISO26000 such as DD, setting priorities, avoiding complicity of all parties involved

ISO 9000 (1989): procuring organizations for standard product quality (more for internal purposes) and updated 2015. CERTIFIABLE!

ISO 14000 (1990s): similar to 9000 but exclusive focus on E aspects. accurate claims enabled to report on E with controlled processes and data collection (updated 2015) CERTIFIABLE!

ISO 26000 (2010) = ISO14000 plus social aspect, but only guidance and NOT CERTIFIABLE. 

ISO proves (only) use of certain standard methods, but not proof of correct Input and therefore correct Results. 

Global Reporting Initiative: Modular structure with some flexibility. Sector standards, currently 1) oil, gas and coal and 2) agriculture & fishing (announced)

• GRI 101: any org. to report on E or Social impact
• GRI 102: put in context
• GRI 103: Mgt approach. how does mgt work?
• GRI 201-207: insight into economic activity
• GRI 301-308: ditto into ecological....(emissions and waste)
• GRI 401-419: Social (health, safety, child labour etc.)

• continuous evolution make hard to compare reports
• few instructions how to report
• can have unintended impacts on mgt, practices and goals

All: 1.6x Earths (E)

CH: 3.3x

CH: 13.5 T

World: 7.4

sustainable limit 1.5

$75/t

only around 18% of polluters are on course to cut emissions to met +2 degree

because sunshine and wind are intermittent, better ways to store energy are needed. Hydrogen and batteries are frontrunners. Problem: for a given volume they store less energy than fossil fuels (possible solution: use electric cars as storage units)

CS builds and depends on Corporate Values. CV should be able to predict Corporate Behaviour. 

Problem: Who can be expected to actually implement CV along extensive, complicated supply chains is of crucial importance. = selling point for i365

Soc. Righrs:

• HuRi, Labor, employment practices (hiring, gender eq., health and well being)

E

• Ecodiversity, climate change response, efficiency, life cycle assessment, pollution prevention
• combating bribery and corruption
• Good tax governance

2500/42000

= provide industry-specific tools to manage and id S issues and opps 

= standardized, transparent way to get S info

= 77 industry specific reporting approaches

= 11 Sectors available based on SICs

= 26 core S issues in E, Soc. capital, HuCapital, business model, innovation and leadership

• GRI Global reporting Initiative
• ISO
• UN Global Compact
• SASB S Accounting Standard Board
• WBCSD World Business Council for S Development
• IIRC International Integrated Reporting Council
• OECD guidelines
• Economy of Common Good ECG
• CDP

Natual Capital = Earth's lands, water & biodiversity

==> Gross Ecosystem Product

Brazilian morals about forest are very different to Norwegian's as an example. Opp. cost of Brazillian rain forest must be paid by someone. Braz. minister quoted once $120/hectare which translated into around $12 billion /p.a.

In July 2020 announced closer rel.ship "how can both standards be applied together?"

SASB = affects co's, Short Term financial condition

GRI = Affects all Stakeholders, more LT, but ultimately also financial.

Happy Employees:

• sales +37%
• productivity +31%
• accuracy +19%

17 SDG with 169 Sub SDGs.

• low willingness to pay more as usually very small part of production costs
• high upfront costs of green tech with only LT payoff
• new skill sets are required and difficult to transfer from traditional industries
• new marketing required to access new markets

summary: low willingness with high development costs

Carbon Disclosure Project

1. avoid fines
2. respond to increasing consumer awareness
3. gain market share/advantage
4. mitigate risk
5. increase investor attraction
6. reduce footprint

1. PIE + conflict minerals or child labour
2. are non financial risks recorded
   1. id, mitigated, reported appropriate measures taken

-> comprehensive Risk Management System of Entire Value Chain necessary (incl. x tier)

S Reporting:

• Risk Mgt
  • ID risk
  • Mitigating measures
  • --> bring to planned outcome
• Resilience Mgt
  • Risk Mgt
  • + potentially new outcomes

Less incoming resources and less outgoing wast

World Business Council for S Development

• <200 members, large financially powerful multis and global corps
• Motto: SD not only good for business but "good business"
• Commitments
  • Consistency
  • Transparency in ESG, reviewed and benchmarked confidentially by WBCSD
• -- outside of political realm
• -- greenwashing accusations

80%

17% Buildings, 12 road transport, 2% shipping and fligths

• 25% China
• 12% USA
• 7% China
• 7% Europe

Over 70 countries have committed to reaching net-zero by 2050. 

Carbon pricing at <$75/t far too low to meet 2 degree temp. goal

ETS = Emission Trading Scheme

• giving money to green charity (planting trees, solar panels. etc.)
• 2018 $3/t vs. around $24/t by EU cap & trade scheme
• Very cheap to "greenwash" because of buying, scale advantages
• Estimates that only 15% of offsets have E benefit
• hardest to measure offsets are usually most popular
• planting trees, but no g^tee that elsewhere chopped
• new trees take time to absorb CO2, up to 100 years

• NOT = certifiable standard
• NOT = regulatory body (no power)
• NOT = trading and reporting on members
• = declaration of intent
• = expression of interest
• = non binding league of corporations
• = 10 principles announced in 1999
  • HuRi
  • Labor
  • E
  • Anti-corruption

9%

8%

12% of GDP

30% of government expenditure