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4 Actions Companies Can Take to Source Legal Wood

Illegal logging drives deforestation in many countries, robbing national governments and local communities of valuable income and contributing to global biodiversity loss and climate change. Apart from its environmental and economic damage, illegal logging can fuel corruption, and is sometimes linked to organized crime and violent social conflict.

A new guide, Sourcing Legally Produced Wood: A Guide for Business, provides four actions companies can take to source legal wood. The guide aims to help companies avoid illicit logging in their supply chains—both for the good of the world’s forests and their own bottom lines.

Demystifying the Role of Ecosystem Services in Impact Assessments

Ensuring that development projects benefit both people and the planet is becoming more and more of a priority.

Environmental and social impact assessments (ESIA) have been in use for decades to consider the effects of projects such as dams, highways, and oil and gas development. Over the years, ESIAs have evolved to cover both environmental and social impacts, including health and human rights.

However, the assessments often study social or environmental factors separately from one another, missing the many ways in which they interact.

In 2012, important financial institutions--the International Finance Corporation and the Equator Principles Financial Institutions--took a welcome step towards promoting a more holistic approach to impact assessment, requiring their clients to address ecosystem services as part of their due diligence.

Incorporating the concept of ecosystem services into ESIA can ensure that affected stakeholders, project developers, financial, and governmental institutions understand the full scope of a proposed project’s impacts on people and the environment. But as I recently learned at the annual conference of the International Association for Impact Assessment (IAIA) two weeks ago, there’s a lot of uncertainty about what the concept of “ecosystem services” really means and how it can be applied to conducting impact assessments. It’s a good time to clear up confusion on this critically important yet complex issue.

Nitrogen Trifluoride Now Required in GHG Protocol Greenhouse Gas Emissions Inventories

Scientific understanding of the chemicals that contribute to climate change is constantly improving. So, too, is the Greenhouse Gas Protocol (GHGP), as we work to keep abreast of such advances and ensure that they are reflected in our tools and standards.

One recent example concerns the greenhouse gas (GHG) nitrogen trifluoride (NF3), a chemical that is released in some high-tech industries, including in the manufacture of many electronics. The GHG Protocol now requires NF3 to be included in GHG inventories under the Corporate Standard, Value Chain (Scope 3) Standard, and Product Standard. A new GHGP Amendment updates the existing requirements.

How does this update affect my organization?

NF3 is used in a relatively small number of industrial processes. It is primarily produced in the manufacture of semiconductors and LCD (Liquid Crystal Display) panels, and certain types of solar panels and chemical lasers. To the extent that these processes occur in your company’s direct operations or value chain, they may need to be reflected in future inventories to ensure conformance with GHG Protocol standards.

Step-by-Step Guidance on Corporate Water Disclosure

Investors need to understand a wide variety of business and market risks facing the companies in which they invest. In the 21st century, that includes water risks.

An increasing number of companies are experiencing detrimental water-related business impacts, including operational or supply chain disruptions and property damage from flooding, to name a few. These impacts can be costly--in 2011 they cost some companies up to $200 million--and have caught the attention of investors around the world.

As a result, the movement toward increased Corporate Water Disclosure is gaining speed. The deadline for companies to respond to the CDP 2013 Water Disclosure Questionnaire is six weeks away. To make the reporting process easier, WRI has aligned our Aqueduct Water Risk Atlas with CDP’s water questionnaire. Together, we are providing step-by-step guidance on how to measure and report exposure to water-related risks.

New Integrated Reporting Framework Aims to Tackle Profit and Planet

This post originally appeared on The Guardian's Sustainable Business blog.

The way companies report on their financial status has changed little since corporate accounting standards were first created 80 years ago. Yet the world they operate in, and the risks and opportunities they face, have changed almost beyond recognition.

Global population has soared from two to seven billion, with human and manufactured capital now in abundance. Natural capital, on the other hand, has become scarcer and more precious. Once-plentiful forests, food, water, wetlands, minerals and metals are in short supply, creating supply chain and operational risks.

Today, a global coalition of regulators, investors, companies, and accounting organizations launched a new integrated reporting framework in six major cities, which aims to address this gap. The draft framework from the International Integrated Reporting Council (IIRC), based on input from 85 pilot companies and more than 50 investors, represents a much-needed milestone in the evolution of corporate reporting.

Accounting for Environmental Externalities Is Good for Business and the Planet

This post also appears on Greenbiz.com.

This is Part Four of a five-part blog series, Aligning Profit and Environmental Sustainability. Each installment explores solutions to help businesses overcome barriers that prevent them from integrating environmental sustainability into their everyday operations. Look for these posts every Thursday.

David Roberts at Grist, the online environmental news organization, commented on Twitter last week that “people talk about ‘externalities’ like they are just bad vibes or something. But that money is real money. Those costs are real costs.” How real is that money? Dr. Pavan Sukhdev, author of The Economics of Ecosystems and Biodiversity and Corporation 2020, claims that these “externalities”—or costs to society from carbon emissions, water use, pollutants, and other byproducts of business activities—are more than $2 trillion.

Putting a financial value on these environmental costs can help businesses make better informed decisions about how they manage their environmental risk. Not all companies recognize this—and even fewer actually know how to value these externalities correctly. But a few corporations are starting to show us the way.

Released for Review: New Standards for Tracking GHG Emissions from Policies and Goals

With the latest round of global climate negotiations at an end, many countries, states, and cities around the world are taking action to reduce greenhouse gas (GHG) emissions through mitigation policies and goals. Decision-makers need to understand the emissions impacts associated with these initiatives in order to evaluate effectiveness, make sound decisions, and assess progress.

However, there is currently little consistency or transparency in how such analysis is done. WRI aims to address this situation through forthcoming Greenhouse Gas (GHG) Protocol standards for mitigation accounting, which have recently been released for review.

The Need for Accounting Standards for Mitigation Policies and Goals

To date, no standardized approach has existed for quantifying the GHG effects of policies and actions and tracking performance toward mitigation goals. For example, there is an ongoing debate on whether the United States is on track to meet its goal of reducing emissions by 17 percent below 2005 levels by 2020. A recent study by Resources for the Future found that the United States is on track to meet its goal. However, the U.S. Energy Information Administration’s 2013 Annual Energy Outlook expects carbon dioxide emissions to be only 9 percent below 2005 levels by 2020 as a result of policies currently in place. This difference in findings reflects differences in assumptions about the emissions impacts of policies, such as performance standards for power plants and vehicle fuel efficiency standards. These variations have very real policy implications for the degree to which the United States needs to ramp up actions to meet its 2020 goal.

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