AU Optronics (AUO), a multinational electronics manufacturer, conducted a global geographic water risk assessment using WRI’s Aqueduct Water Risk Atlas. This assessment aims to identify which of AUO’s fabrication plants are located in or source water from areas facing potential water risks....
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This post originally appeared on Forbes.com.
What do three leading chemical, automobile, and software companies have in common? All three – Honda, BASF, and SAP – are looking to curb risks and take advantage of opportunities across their global supply chains. They’re doing so by measuring their greenhouse gas emissions—not just in their operations, but up and down their value chains.
Many other multinationals are heading in the same direction. The Carbon Disclosure Project’s (CDP) annual survey of the Global 500, released last month, reveals that seven in ten respondents measured some value chain emissions in 2011, up from about half in 2010. (Note this figure is based on WRI’s analysis of the 405 companies that submitted data to the CDP 2012 survey data.)
What’s driving the world’s biggest corporations down this path? In a nutshell: reputation, risk, and opportunity.
“To tell the story of the corporation is to tell the story of a grand bargain gone awry,” says Pavan Sukhdev in his new book, Corporation 2020: Transforming Business for Tomorrow’s World. It’s a bold statement, but he backs up his claim persuasively. While many companies are reaching record profits, they’ve oftentimes come at the expense of ecological degradation, rising greenhouse gas emissions, unemployment, spikes in food and fuel costs, and social inequalities.
But Sukhdev has developed what he believes is a framework for shifting the private sector towards a greener, more equitable economy. WRI recently hosted Sukhdev at our Washington, D.C. office to discuss his new book and his vision for the future. The founder of GIST Advisory and former head of UNEP’s Green Economy Initiative joined a panel discussion with WRI’s Managing Director, Manish Bapna, and Naoko Ishii, CEO of the Global Environment Facility.
“Pavan has written a remarkable new book,” said WRI’s president, Andrew Steer, who opened Wednesday’s event. “It not just a book, but really a campaign to change corporations in four viable ways.”
The 4 “Planks” for Corporate Sustainability
Sukhdev’s framework for shifting the private sector towards greater social and environmental sustainability includes what he calls the “four planks of change:”
2011/2012 was a transition period as WRI said goodbye to President Jonathan Lash and welcomed new President Andrew Steer. With ample wind in our sails from 18 years of Jonathan’s leadership, the Institute’s accomplishments—many captured in this report—reflect both the strength and versatility he...
The unsustainable use of water and the risks it creates is on the minds of many of the thousands of water experts from the corporate, NGO, and government worlds who convened in Stockholm this week for World Water Week. As companies increasingly view water as not just an environmental issue, but a complex driver of very real risks to their businesses, the appetite for better information on how to manage these risks and become good water stewards has grown substantially. In fact, many organizations have put tremendous effort into developing tools and methodologies and compiling the best publicly available water information so that companies can manage their water use in sustainable, efficient, and equitable ways.
This week in Stockholm, teams from the World Business Council for Sustainable Development (WBCSD), World Resources Institute (WRI), and Water Footprint Network (WFN) convened a seminar called “Towards Sustainability: Harmonising Water Tools for Better Water Governance”. The event focused on providing an overview of each tool and highlighting areas requiring better harmonization and coordination efforts to help drive companies towards better management and stewardship of water resources. The seminar also included Ceres, DEG (a German development finance institution), World Wildlife Fund (WWF), and the UN CEO Water Mandate. The goal of the seminar was to explain how our organizations are striving to provide companies with a clear, easy-to- understand, and compatible set of water management tools—not a variety of competing efforts, but rather an organized and coordinated front.
This piece was co-authored by Stuart Orr, Freshwater Manager, WWF. It also appears on the WWF Freshwater Programme blog.
There is no shortage of troubling statistics to prove that water management is a global challenge. About 1.2 billion people currently face water scarcity, and a population expected to grow to 9 billion by 2050 will put increased strain on already pressured water supplies worldwide.
But while the water challenge is truly global, it also demands solutions that are tailored to local conditions. Availability, use, and quality of water vary dramatically from place to place.
This piece was co-authored by Keith Liao, Senior Engineer with the AU Optronics Corporate Sustainability and Environment Department
Companies are increasingly feeling the financial impacts of water risks like shortages and pollution. Ceres’ most recent report, Clearing the Waters, highlights the fact that companies are falling short on identifying key areas where their operations are exposed to physical water risks. Mitigating these threats, then, requires doing more to assess, disclose, and address them.
In an effort to learn more about how companies can better understand and manage water risks, the World Resources Institute’s Aqueduct program recently partnered with AU Optronics (AUO) to assess water risks faced by the company’s fabrication plants around the world. Headquartered in Hsinchu, Taiwan, AUO is a leading manufacturer of electronic screens, otherwise known as thin-film transistor liquid crystal displays (TFT-LCDs). AUO makes up 17 percent of the world’s market share of TFT-LCDs and generated $12.5 billion in annual sales revenue in 2011.
This post originally appeared on Forbes.com
The Amazon rainforest boasts incomparable biodiversity– home to one in 10 of all known species— and plays a vital role in regional water supply and global climate regulation. Yet, it is also a profitable working forest, benefitting both local businesses and international corporations.
Trying to reconcile the conservation and commercial roles of such biodiversity hotspots is no easy matter. But a group of multinational corporations— Anglo American, Danone, Grupo Maggi, PepsiCo, Natura, Vale, Votorantim, and Walmart— are attempting to do just that in Brazil.
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This document provides a glossary of financing instruments and the mechanism of these instruments. These definitions may serve as a useful reference for public sector decision-makers evaluating the broad toolkit
of options available to support private sector climate change mitigation...
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These tables provide examples of donor government, development bank, research organization, and private sector efforts that examine how to use public climate finance to leverage private capital for climate change mitigation projects in developing countries. These tables are intended to...
This is the fourth installment of a five-part blog series on scaling environmental entrepreneurship in emerging markets. In this series, experts in the field provide insights on how business accelerators, technical assistance providers, investors, and the philanthropic community can work with developing market entrepreneurs to increase their economic, environmental, and social impacts. Read the rest of the series.
What do development banks, impact investment funds, foundations, and business accelerators have in common? Each of these organizations plays a significant role in supporting entrepreneurs in developing countries, including those who are trying to solve environmental problems through commercial enterprises.
But in most cases, these groups have traditionally occupied distinct niches in the support they provide. Development banks specialize in providing businesses with grants, loans, and technical assistance; impact investors provide debt or equity at market or near-market rates; foundations channel their philanthropy to create change; and business accelerators help entrepreneurs hone their business skills and attract investors.
What would happen if these groups worked more closely together? As we discussed at a recent WRI event, if organizations were able to combine their respective strengths, entrepreneurs could capture greater benefits than if groups work alone.
The annual 2012 Mindshare Meeting of WRI’s Corporate Consultative Group (CCG) brought together experts and leading representatives from business partners to discuss cutting-edge issues at the forefront of corporate sustainability. The discussion embodied the ideas that can be generated when business works with non-profits to identify emerging issues and develop solutions to the planet’s most pressing challenges.
Business leaders from almost all of the 36 CCG companies attended this year’s meeting. With nearly $3 trillion in combined annual sales, this group’s reach and influence has a significant impact on people and the planet. Joined by WRI’s Board Chair Jim Harmon and WRI directors Robin Chase, Alison Sander, Tiffany Clay, and Clint Vince, the MindShare Meeting generated some big ideas to help inform decisions that are smarter for both business and the environment.
3 Ideas to Boost Corporate Sustainability
We had a stimulating two days with corporate leaders. Three major ideas that emerged from our conversations included:
This post was co-authored with Jose Carlos Lombana, co-founder of Sistemas de Captación de Agua Pluvial (SCAP).
This story is part of the “Aqueduct Sneak Peek” series. Aqueduct Sneak Peek provides an early look at how various stakeholders can use Aqueduct’s updated global water risk maps, which will be released in January 2013. Read more posts in this series.
A study by scientists at The Nature Conservancy and other institutions estimates that by 2050, more than 1 billion city dwellers may be living on less than one bathtub’s worth of water a day. While this and other water risks are undeniably troubling, they can be overcome in many cases. With the right data and innovation, entrepreneurs can turn these risks into business opportunities.
Rainwater Harvesting Solutions in Mexico City
Mexico City, the biggest metropolis in the Western hemisphere, faces significant water shortages, leaving many domestic, agricultural, and industrial users exposed to severe water-related risks. The city was built on the foundations of the Aztec capital, on the bed of Lake Texcoco. Today, centuries later, its groundwater supplies are rapidly diminishing, and it relies on a network of reservoirs and decaying infrastructure to pump in water from hundreds of miles away. Furthermore, urban growth and climate change are pushing Mexico City’s water supply to the edge. Reservoirs were dangerously low during the 2009 drought, leading the government to cut off water in some areas of the city.
Sarah Cohen, an intern with WRI's Markets and Enterprise Program, also contributed to this blog post.
Do you have colleagues who roll their eyes when they hear the words “environment” or “sustainability?” The sad truth is that environmental issues are not always a passion for everyone at every organization. However, climate change and other environmental challenges are shaping tomorrow’s markets—so how do you draw connections between sustainability and business value for those who may not see it right away?
Today, WRI is releasing a guide to address this question and many more related to corporate sustainability. The guide—which was road-tested this summer by a dozen major companies like Target, Method, and Staples—adds a sustainability component to the traditional Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis that corporations have relied on for more than 50 years. Our sustainability SWOT, or “sSWOT,” is designed to help corporate sustainability champions engage colleagues, customers, suppliers, and even competitors to identify links to business risks and brainstorm new business opportunities.
Forests are vitally important for the global environment, economy, and population. The forest sector employs 13.7 million workers and contributes to about 1 percent of the global GDP. Plus, an estimated 500 million people around the world directly depend on forests for their livelihoods.
But forests are also under threat. From 2000-2010, about 15 million hectares of the world’s forests were cleared, and a 2004 assessment estimated that 8-10 percent of the global wood trade is of illegal origin. In addition to deforestation, illegal logging can cause government revenue losses, poverty, unfair competition with legally sourced goods, unplanned and uncontrolled forest management, conflicts, and other illicit activities that can occur in instances where illegal logging’s proceeds are linked to organized crime and corruption.
But there are solutions. One way to improve forest management across the globe is for businesses, governments, and citizens to seek out and demand sustainably harvested wood and paper products.
Today, WRI and the World Business Council for Sustainable Development (WBCSD) released the third edition of a guide that helps businesses develop sustainable policies and seek out sustainably harvested wood and paper products. The updated guide, Sustainable Procurement of Wood and Paper-Based Products, is accompanied by a revamped website.
A joint collaboration between WRI and the World Business Council on Sustainable Development (WBCSD)
This WRI/WBCSD guide provides simple, clear information about the 10 key issues related to sustainable procurement of wood and paper-based products. The guide is designed as an...
A Sustainability SWOT
The sustainability Strengths, Weaknesses, Opportunities, Threats analysis (sSWOT) is designed to help drive action and collaboration on environmental challenges, creating business risks and opportunities. sSWOT helps individuals engage and motivate colleagues—particularly those with limited...
This post was co-written with Saurabh Lall, Research Director of Aspen Network of Development Entrepreneurs (ANDE). ANDE is a global network of over 170 member organizations that focus on the potential of small and growing businesses (SGBs) around the world to create economic, social and environmental impact.
Over the past few years, we have seen tremendous growth in impact investing, investments made to generate both a financial and a social/environmental return. The sector now manages about US$40 billion.
While this growth on the supply side of mission-driven capital has been tremendous, we must now focus on the demand side—in other words, the entrepreneurs themselves. It’s essential to ensure that there are enough entrepreneurs and small and growing businesses (SGBs) out there to address today’s complex, global challenges. These businesses must also have the capacity to take on the type of capital that impact investors have to offer. Accelerators and incubators are and will be increasingly critical to achieving these goals.
Accelerators are groups that provide business development support to enterprises with existing customers and revenue, while incubators typically serve earlier stage enterprises (pre-customers and pre-revenue). These types of groups can help grow environmental entrepreneurship by ensuring that demand meets supply; in other words, a strong pipeline of deals is ready to meet the growing supply of capital.
The Global Impact Investment Network defines impact investments as “investments made into companies, organizations, and funds with the intention to generate measurable social and environmental impact alongside a financial return.” Few people understand that concept better than Jed Emerson.
A recognized international leader in the field of strategic philanthropy and impact investing, Emerson has spent more than two decades exploring how capital investment strategies may be executed to create multiple returns. Currently, he is Chief Impact Strategist at ImpactAssets, a senior fellow with Heidelberg University’s Center for Social Investing, and a senior advisor to the Sterling Group in Hong Kong. In 2011, he co-authored the book, Impact Investing: Transforming How We Make Money While Making A Difference, the first book published on the topic of impact investing. We caught up with Emerson to discuss how impact investors can help developing market entrepreneurs increase their economic, environmental, and social impacts.
1) If you were in an elevator with a promising developing country environmental entrepreneur, what would be your advice on how to lock-in investment (whether from the traditional or impact investment community)?
This is the first installment of a five-part blog series on scaling environmental entrepreneurship in emerging markets. In forthcoming posts, experts in the field will provide insights on how business accelerators, technical assistance providers, investors, and the philanthropic community can work with developing market entrepreneurs to increase their economic, environmental, and social impacts.
One of the greatest challenges of our time is achieving economic development without harming the planet and local communities. Entrepreneurship can play a critical role in solving this dilemma.
In fact, entrepreneurs and the small and medium enterprises (SMEs) they create contribute up to 78 percent of employment and more than 29 percent of GDP in developing economies. These types of businesses play an invaluable role in creating jobs, spurring community growth, and alleviating poverty. Some of these SMEs create even more value by generating clear, measurable environmental benefits.
But the problem is that these entrepreneurs face a host of challenges when it comes to growing their businesses and succeeding. As Global Entrepreneurship Week is celebrated across the world this week, it’s a good time to examine the importance of environmentally focused entrepreneurs as well as the difficulties they face.