Topic: supply chains

RELEASE: New Mapping Tool Provides Unprecedented Ability to Assess Water Risk

Lauren Zelin — Tue, 29 Jan 2013 22:08:10 -0500

Aqueduct provides companies with comprehensive, high-resolution picture of water risks worldwide.

The World Resources Institute (WRI) today launched a new online tool that maps water risk worldwide based on the most current, highest resolution data available. Companies, investors, and governments can use the Aqueduct Water Risk Atlas to see how water stress will affect operations locally and globally, and help prioritize investments that will increase water security.

The online tool was developed by WRI, working with founding members of the Aqueduct Alliance, GE and Goldman Sachs, as well as Skoll Global Threats Fund, Shell, Bloomberg, Talisman Energy, Dow, United Technologies (UTC), DuPont, John Deere, Veolia Water, and the Dutch and Swedish governments.

The Aqueduct Water Risk Atlas is a customizable global map, based on 12 indicators of physical, regulatory, and reputational risk. In a user-friendly way, companies can now evaluate how water stress, flood occurrence, access to water, drought, and other issues may affect operations. Additionally, the global map can be tailored specifically for nine water-intense industry sectors - from oil and gas, to agriculture, to chemicals.

“Recent history is littered with companies that failed to anticipate emerging threats. Water scarcity is one such threat. Thankfully, forward-thinking business leaders are starting to get it. They understand that water risk is one of the top issues that they face,” said Andrew Steer, President, World Resources Institute. “This new platform will provide companies with comprehensive, high-resolution tools to measure water risk. It gives them an unprecedented ability to understand and better manage these risks.”

Companies have already been using earlier versions of the Aqueduct tool to understand how their operations and supply chains may be exposed to water risk. For example:

McDonalds has asked 353 of its global suppliers’ facilities to use Aqueduct to assess their local water risk;
Procter & Gamble, Owens-Corning, and AU Optronics have used Aqueduct to understand how local water supply, quality, and other risk factors may affect their global facilities, and to prioritize water efficiency and other investments;
Bank of America Merrill Lynch used Aqueduct to inform investors about water risks and opportunities in a recently released research report; and
Companies used Aqueduct to disclose and report on external water risk in the Carbon Disclosure Project’s (CDP) 2012 Global Water Report.

“Aqueduct’s global water risk map provides an innovative tool and important step forward in understanding critical water issues,” said Kyung-Ah Park, Head of the Environmental Markets Group at Goldman Sachs. “Assessing risk is challenging, and even more so with complex issues like water. Aqueduct provides a much more complete picture of the water issues affecting business globally than we’ve had before.”

Through the Atlas, users can plot the locations that matter most to them – from facilities, to suppliers, to potential new markets or proposed power plants – and compare those locations’ potential exposure to water stress and risk. They can also review maps of individual indicators, such as seasonal variability, which may be highly important to their operations.

“GE knows first-hand that water scarcity is a major challenge in many parts of the world,” said Heiner Markhoff, President and CEO of GE Water. “We’re very pleased that Aqueduct’s new global water risk maps will enhance understanding of these risks in ways that enable society to address them more effectively.”

The release of the global Water Risk Atlas is the culmination of a three-year effort by WRI to create a peer-reviewed and robust methodology for mapping complex water security around the world.

“Aqueduct’s global water risk mapping information is a valuable tool for understanding and addressing the pressing global threat of water security,” said Sylvia Lee, Water Manager, Skoll Global Threats Fund. “We understand that water is not just an environmental issue, but a real and substantial risk to communities, economies, and businesses. The new global water risk maps make it easier than ever to research and understand where in the world these risks are greatest, and where action is most needed.”

On Thursday January 31, WRI is hosting a public webinar to showcase the new Aqueduct water risk mapping tool – see information below.

On February 8, water experts from leading companies will participate in the “Water: Emerging Risks and Opportunities Summit” co-hosted by GE Power & Water, Goldman Sachs, and WRI at Goldman Sachs headquarters in New York City. For more information, contact Kevin Smith from Goldman Sachs at kevin.m.smith@gs.com.

EDITOR’S NOTE

Aqueduct is holding a webinar at 11:00AM ET on Thursday January 31 to introduce the Aqueduct Water Risk Atlas. To register, visit http://www.wri.org/event/2013/01/webinar-wris-aqueduct-global-water-risk-mapping-tool.

RELEASE: New Greenhouse Gas Standards Unveiled for Corporate Value Chain and Products in India

Lauren Zelin — Thu, 15 Mar 2012 00:19:03 -0400

The Greenhouse Gas Protocol launched two new standards today in New Delhi, India, to empower businesses to better measure, manage, and report their greenhouse gas emissions. Developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), the Corporate Value Chain (Scope 3) and Product Life Cycle Standards enable companies to save money, reduce risks, and gain competitive advantages. The launch event was hosted by WRI, WBCSD, and The Energy and Resources Institute (TERI), and was followed by local training workshops on the new standards.

This is the first time WRI and WBCSD have officially released GHG Protocol standards in India, though a growing number of Indian companies are already doing corporate greenhouse gas (GHG) accounting. According to the Carbon Disclosure Project (CDP) 2011 India Report, 57 companies submitted reports and 89% reported their GHG emissions using the GHG Protocol Corporate Standard or a protocol based on it. Given India’s significant role in the global economy, product and value chain management are becoming increasingly important, so the new standards bring multiple strategic insights and opportunities for Indian businesses.

“The new GHG Protocol standards allow Indian companies to identify and target new market opportunities for low-carbon business models and products,” said Pankaj Bhatia, Director, GHG Protocol, WRI. “Businesses will find that these standards provide state-of-art methods and tools that can be deployed not only to measure and manage GHG emissions, but also to track important co-benefits in the India context. This, in turn, can help Indian businesses reduce energy use and manage resources more effectively across the full value chain.”

Released internationally in October 2011, the Corporate Value Chain and Product Life Cycle Standards were created in response to businesses that wanted to better understand and measure their climate impacts beyond their own operations. The standards were developed with input from business leaders, NGOs, academics, and policymakers around the world. More than 2,300 participants from 55 countries contributed to the process, and 60 companies road tested the new standards. Businesses that use the GHG Protocol standards will be able to create better products and improve efficiency throughout the value chain.

“The launch of the new GHG Protocol Corporate Value Chain and Product Life Cycle standards in India marks an important step in the global uptake of these important tools,” said Thierry Berthoud, Managing Director, Energy & Climate, WBCSD. “Businesses around the world increasingly understand that by measuring, reducing, and reporting on their full corporate GHG impact, they can save money, reduce risk, and drive new business opportunities.”

The Corporate Value Chain Standard reveals opportunities for companies to make more sustainable decisions about their activities and the products they produce, buy and sell. Large and small companies can look strategically at greenhouse gas emissions across their value chain, showing them where to focus limited resources to have the biggest impacts.

The Product Life Cycle Standard enables companies to measure the greenhouse gas emissions of an individual product. Covering materials, manufacturing, use and disposal, the product standard will help companies improve and design new products, and provide insights for more informed consumer choices.

“TERI has been working with the GHG Protocol since the first Corporate Standard was released in 2001, and we have worked on a pilot basis with various corporate houses to advise them about GHG emissions,” said Girish Sethi, Director-Industrial Energy Efficiency and Sustainable Technology, TERI. “These standards can help companies understand, measure, and manage their GHG emissions and work towards reducing their carbon footprints.”

Prior to the launch in India, previous events have been held in New York, London, Tokyo, Beijing, and Durban, South Africa. Recognizing the significance of the new standards for emerging markets, the GHG Protocol is planning further launches and training events, including Brazil in the summer of 2012.

More information on the GHG Protocol standards is available at: www.ghgprotocol.org.

# # #

The Greenhouse Gas Protocol
A global collaboration led by WBCSD and WRI. It provides the foundation for sustainable climate strategies and more efficient, resilient and profitable organizations. GHG Protocol standards are the most widely used accounting tools to measure, manage and report on greenhouse gas emissions. www.ghgprotocol.org

The World Resources Institute
WRI is a global environmental think tank that goes beyond research to put ideas into action. We work with governments, companies, and civil society to build practical solutions to urgent environmental challenges. WRI’s transformative ideas protect the Earth and promote development because sustainability is essential to meeting human needs and fulfilling human aspirations for the future. www.wri.org

The World Business Council for Sustainable Development
WBCSD is a CEO-led organization of forward-thinking companies that galvanizes the global business community to create a sustainable future for business, society and the environment. Together with its members, the council applies its respected thought leadership and effective advocacy to generate constructive solutions and take shared action. Leveraging its strong relationships with stakeholders as the leading advocate for business, the council helps drive debate and policy change in favor of sustainable development solutions.

The WBCSD provides a forum for its 200 member companies - who represent all business sectors, all continents and a combined revenue of more than $7 trillion - to share best practices on sustainable development issues and to develop innovative tools that change the status quo. The Council also benefits from a network of 60 national and regional business councils and partner organizations, a majority of which are based in developing countries. www.wbcsd.org

The Energy and Resources Institute (TERI)
From microbiology to global climate change, from smoke-filled rural kitchens to plush corporate boardrooms, from schoolchildren to heads of state—no sphere of human endeavor is unfamiliar to TERI. Headed by world-renowned economist and Head of the Nobel Prize winning UN Climate panel, Dr. R K Pachauri, TERI is best described as an independent, not-for-profit research institute focused on energy, environment, and sustainable development and devoted to efficient and sustainable use of natural resources. www.teriin.org

TERI-BCSD
For the past several years, TERI has been addressing issues related to sustainable development with Indian industry, by setting up TERI-BCSD (Business Council for Sustainable Development). Having succeeded to garner the support of over 100 member companies recently, TERI-BCSD India has received the fillip to evolve into a unique industry body mobilising the corporate sector in implementing the principles of sustainable development. bcsd.teri.res.in

Greenhouse Gas Protocol

admin — Thu, 01 Dec 2011 16:25:37 -0500

The Greenhouse Gas Protocol (GHG Protocol) is the most widely used international accounting tool for government and business leaders to understand, quantify, and manage greenhouse gas emissions. The GHG Protocol Initiative, a decade-long partnership between the World Resources Institute and the World Business Council for Sustainable Development, is working with businesses, governments, and environmental groups around the world to build a new generation of credible and effective emissions accounting and reduction programs for tackling climate change.

NEW Video: The Benefits of the Scope 3 and Product Standards | 4:29

Executives from companies such as PepsiCo, BASF, and Tesco discuss the important role the standards play in revealing new opportunities for GHG reductions. Visit the Greenhouse Gas Protocol website for more information.

PRESS RELEASE: New Greenhouse Gas Standards Unveiled for Corporate Value Chain and Products in China

Lauren Zelin — Thu, 17 Nov 2011 23:02:50 -0500

The Greenhouse Gas Protocol (GHG Protocol) launched two new standards today in Beijing, China that will empower businesses to better measure, manage, and report their greenhouse gas emissions. Developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), the Corporate Value Chain (Scope 3) and Product Life Cycle Standards will enable companies to save money, reduce risks, and gain competitive advantage.

It is the first time for WRI and WBCSD to officially release GHG Protocol standards in China. Eight Chinese companies were involved in road testing these new standards, and other Chinese organizations were engaged in the GHG Protocol’s international standards development process.

The eight road testing companies are Baosteel Group Corporation, Lenovo China, Quanta Computer, PricewaterhouseCoopers China, Swire Beverages, Lianye Garment-making (Dongguan) Co., Ltd, Shanghai Zidan Printing Co., Ltd, Kunshan Taiying Painting Co., Ltd.

Wah Fung Group is the first Chinese company to adopt the final Product Life Cycle Standard. As a leading fabric supplier, Wah Fung Group released a report showing that its Cold Pad Batch dyeing technology achieved 13 percent carbon savings and over 50 percent water savings compared with the conventional dyeing process.

“These standards are a breakthrough for business. For the first time, companies will be able to measure and manage the full scope of emissions in their value chain and products, so they can take advantage of new opportunities as they reduce greenhouse gases,” said Manish Bapna, Interim President, WRI. “Backed by the credibility of the GHG Protocol, the new standards will help move businesses and reporting programs to one harmonized global reporting framework.”

The new standards were created in response to businesses that want to better understand and measure their climate impacts beyond their own operations. Companies that use the standards will be able to create better products and improve efficiency throughout the value chain.

“The new standards provide companies with a comprehensive view of the emissions produced when making a product and across the value chain. They will help companies make better business decisions and stimulate innovation of products and production methods,” said Björn Stigson, President, WBCSD. “In today’s world, it is necessary to understand and measure the costs for production, labor and transportation of products, which become visible and actionable through emissions.”

“The new Greenhouse Gas Protocol Corporate Value Chain Standard provides a much needed harmonized global methodology for businesses to measure corporate value chain and product greenhouse gas emissions,” said Kelly Semrau, Senior Vice President of Global Corporate Affairs, Communication and Sustainability for S.C. Johnson. “Our road test of the new Scope 3 standard provides us with key data to drive our strategic business decisions regarding greenhouse gas reductions. We encourage other businesses to similarly employ this effective method to measure, and subsequently address, greenhouse gas emissions from the entire value chain.”

The Product Life Cycle Standard enables companies to measure the greenhouse gas emissions of an individual product. Covering materials, manufacturing, use and disposal, the product standard will help companies improve existing products and design new products, and provide insights for more informed consumer choices.

“The new GHG Protocol Product Standard gives us a globally consistent approach to measure and manage our product emissions that will help us innovate and improve our products over time,” said Kevin Anton, Vice President and Chief Sustainability Officer, Alcoa. “This knowledge may bring us savings in both carbon and cost, but it is also exciting to think what this might mean for the future of customer education and purchasing. In a world where knowledge is power, the GHG Protocol Product Standard gives us and our customers the information needed to make informed decisions.”

Alcoa performed a cradle-to-grave GHG inventory of their aluminum truck wheel, with an assumed recycling rate of 95 percent. Through recycling, Alcoa could achieve a 10 percent reductions in greenhouse gas emissions.

Already, these new standards are gaining widespread traction:

The Consumer Goods Forum, representing over 400 consumer goods companies and retailers with a combined 3 trillion dollars in sales, has recommended the new standards be used by members who choose to measure and report scope 3 and product greenhouse gas emissions;
The Sustainability Consortium has adopted the Product Life Cycle Standard as the GHG methodology used in their tools to promote product sustainability; and
The Global e-Sustainability Initiative, a consortium of leading ICT companies and other experts, are utilizing the Product Standard as the basis for developing sector guidance for ICT products and services.

The Corporate Value Chain and Product Life Cycle Standards were developed with input from business leaders, NGOs, academics, and policymakers. More than 2,300 participants from 55 countries contributed to the process, and 60 companies road tested the new standards.

“The standards were developed through a global, multi-stakeholder process making them both credible and user-friendly,” said Pankaj Bhatia, Director, GHG Protocol, WRI. “Building on current best practice and extensive input from businesses, governments, and other partners, these standards will be beneficial to businesses and other stakeholders in developing strategies to reduce emissions around the globe.”

The new standards are available on the GHG Protocol website: www.ghgprotocol.org.

PRESS RELEASE: New Greenhouse Gas Standards Unveiled for Corporate Value Chain and Products

Lauren Zelin — Tue, 04 Oct 2011 15:22:02 -0400

The Greenhouse Gas Protocol launched two new standards today that will empower businesses to better measure, manage, and report their greenhouse gas emissions. Developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), the Corporate Value Chain (Scope 3) and Product Life Cycle Standards will enable companies to save money, reduce risks, and gain competitive advantages.

GHGP Resources

Corporate Value Chain (Scope 3) Standard

Product Life Cycle Standard

Fact Sheet (PDF, 104 Kb)
FAQ About the Standards (PDF, 127 Kb)
Quote Sheet (PDF, 93 Kb)
Watch the Video
Listen Live to the NYC Event
Follow the Event on Twitter (hashtag #ghgp)
Slide Presentation
Q&A with Janet Ranganathan & Pankaj Bhatia

Already, these new standards are gaining widespread traction:

The Consumer Goods Forum, representing over 400 consumer goods companies and retailers with a combined 3 trillion dollars in sales, has recommended the new standards be used by members who choose to measure and report scope 3 and product greenhouse gas emissions;
The Sustainability Consortium has adopted the Product Life Cycle Standard as the GHG methodology used in their tools to promote product sustainability; and
The Global e-Sustainability Initiative, a consortium of leading ICT companies and other experts, are utilizing the Product Standard as the basis for developing sector guidance for ICT products and services.

The new standards are available at: www.ghgprotocol.org.

# # #

The Greenhouse Gas Protocol is a global collaboration led by WBCSD and WRI. It provides the foundation for sustainable climate strategies and more efficient, resilient and profitable organizations. GHG Protocol standards are the most widely used accounting tools to measure, manage and report on greenhouse gas emissions. www.ghgprotocol.org

The World Resources Institute is a global environmental think tank that goes beyond research to put ideas into action. WRI works with governments, companies, and civil society to build solutions to urgent environmental challenges. www.wri.org

The World Business Council for Sustainable Development is a CEO-led, global coalition of some 200 companies advocating for progress on sustainable development. Its mission is to be a catalyst for innovation and sustainable growth in a world where resources are increasingly limited. The Council provides a platform for companies to share experiences and best practices on sustainable development issues and advocate for their implementation, working with governments, non-governmental and intergovernmental organizations. www.wbcsd.org

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[Top]

Greenhouse Gas Protocol Product Life Cycle Accounting and Reporting Standard

Maggie Barron — Mon, 03 Oct 2011 22:58:31 -0400

The GHG Protocol Product Life Cycle Accounting and Reporting Standard (referred to as the Product Standard) provides requirements and guidance for companies and other organizations to quantify and publicly report an inventory of GHG emissions and removals associated with a specific product. The primary goal of this standard is to provide a general framework for companies to make informed choices to reduce greenhouse gas emissions from the products (goods or services) they design, manufacture, sell, purchase, or use. In the context of this standard, public reporting refers to product GHG-related information reported publicly in accordance with the requirements specified in the standard.

Related Standards

New! Corporate Value Chain (Scope 3) Accounting and Reporting Standard

Corporate Accounting and Reporting Standard

As awareness about climate change increases and concerns grow, investors are demanding more transparency, and consumers are seeking greater clarity and environmental accountability. Companies are increasingly receiving requests from stakeholders to measure and disclose their corporate GHG inventories, and these requests often include a company’s products and supply chain emissions. Companies must be able to understand and manage their product-related GHG risks if they are to ensure long-term success in a competitive business environment and be prepared for any future product-related programs and policies.

This standard focuses on emissions and removals generated during a product’s life cycle and does not address avoided emissions or actions taken to mitigate released emissions. This standard is also not designed to be used for quantifying GHG reductions from offsets or claims of carbon neutrality.

Ultimately, this is more than a technical accounting standard. It is intended to be tailored to business realities and to serve multiple business objectives. Companies may find most value in implementing the standard using a phased approach, with a focus on improving the quality of the GHG inventory over time.

Watch the Video

Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard

Maggie Barron — Mon, 03 Oct 2011 22:57:38 -0400

The primary goal of this standard is to provide a standardized step-by-step approach to help companies understand their full value chain emissions impact in order to focus company efforts on the greatest GHG reduction opportunities, leading to more sustainable decisions about companies’ activities and the products they buy, sell, and produce. The standard was developed with the following objectives in mind:

Related Standards

New! Product Life Cycle Accounting and Reporting Standard

Corporate Accounting and Reporting Standard

To help companies prepare a true and fair scope 3 GHG inventory in a cost-effective manner, through the use of standardized approaches and principles
To help companies develop effective strategies for managing and reducing their scope 3 emissions through an understanding of value chain emissions and associated risks and opportunities
To support consistent and transparent public reporting of corporate value chain emissions according to a standardized set of reporting requirements Ultimately, this is more than a technical accounting standard. It is intended to be tailored to business realities and to serve multiple business objectives. Companies may find most value in implementing the standard using a phased approach, with a focus on improving the quality of the GHG inventory over time.

Watch the Video

PRESS RELEASE: Businesses See Climate Change Adaptation as an Opportunity

Lauren Zelin — Mon, 20 Jun 2011 10:42:14 -0400

New report surveys companies, offers practical solutions for climate resilience

Climate adaptation offers competitive advantages to businesses worldwide, according to the new report, Adapting for a Green Economy: Companies, Communities and Climate Change, jointly released today by the UN Global Compact, the UN Environment Programme (UNEP), Oxfam and the World Resources Institute. In response to a survey of global businesses, 86 percent described responding to climate risks or investing in adaptation as a business opportunity.

“Business can only thrive in stable and enabling environments,” said Georg Kell, Executive Director of the UN Global Compact. “Climate adaptation offers a pathway to help communities that are already feeling the devastating impacts of climate change. At the same time, it creates a wealth of new opportunities for the private sector.”

Drawing on the results of a 2010 survey among companies engaged in Caring for Climate, the joint climate action platform of the UN Global Compact and UNEP, the study makes the business case for private sector adaptation to climate change in ways that build the resilience of vulnerable communities in developing countries. Already, businesses worldwide are beginning to see the risks and economic impacts of more frequent and intense storms, water scarcity, declining agricultural productivity and poor health.

Achim Steiner, UN Under-Secretary General and UNEP Executive Director, said: “We live in a world where extreme weather events on one day can move food and fuel prices the next, impacting vulnerable and poor communities and a company’s supply chain. We also live in a world where infrastructure established decades ago will become increasingly at risk to events such as storm surges and high winds, that in turn threaten the viability of the business-as-usual models of the past, and the profits or losses of firms for the future.”

“There are multiple reasons why the world urgently needs a transition to a low-carbon, resource efficient Green Economy, including climate change and adapting to its impacts. This report underlines that climate-proofing is not just a responsibility of governments, but should be at the centre of more and more companies’ business models and forward-looking corporate strategies,” he added.

The study suggests actions that companies and policymakers can pursue to catalyze and scale up private sector engagement. Confirming the notion that the climate threats many communities face are also business risks, 83 percent of companies surveyed responded that climate change impacts pose a risk to their products and service.

“Businesses are facing increasing challenges from the rise in extreme weather events— such as droughts, heat waves and floods,” said Manish Bapna, Managing Director, World Resources Institute. “In this changing environment, companies that move first to address the risks and develop innovative strategies to adapt to climate change are likely to be the winners and gain a competitive advantage moving forward.”

The study recommends, among others, that businesses integrate climate adaptation into core strategic planning and build a portfolio of climate-resilient goods and services. Addressing policy makers, the authors call for stronger policy and finance commitments to adaptation, financial and risk-reduction incentives to stimulate the market, and for new forms of public-private partnerships.

“Communities around the world are already dealing with the impacts of climate change,” said Raymond C. Offenheiser, President of Oxfam America. “Since companies depend on community members as suppliers, customers and employees, and need to count on local services and infrastructure to be able to operate efficiently, the well-being of communities on the frontlines of climate change and the viability of companies are intricately intertwined.”

The report can be found at http://www.wri.org/publication/adapting-for-a-green-economy.

About the UN Global Compact
Launched in 2000, the United Nations Global Compact is a call to companies around the world to align their strategies and operations with ten universal principles in the areas of human rights, labour, environment and anti-corruption, and to take action in support of broader UN goals. Through the development, implementation, and disclosure of responsible corporate policies and practices, business can help ensure that markets advance in ways that benefit economies and societies everywhere. With more than 6,000 corporate signatories in over 135 countries, it is the world’s largest corporate responsibility initiative. www.unglobalcompact.org

About the UN Environment Programme
The United Nations Environment Programme (UNEP), established in 1972, is the voice for the environment within the United Nations system. UNEP acts as a catalyst, advocate, educator and facilitator to promote the wise use and sustainable development of the global environment. To accomplish this, UNEP works with a wide range of partners, including United Nations entities, international organizations, national governments, non-governmental organizations, the private sector and civil society. www.unep.org

About the World Resources Institute
WRI is a global environmental think tank that goes beyond research to put ideas into action. WRI works with governments, companies, and civil society to build solutions to urgent environmental challenges. www.wri.org

About Oxfam
Oxfam is an international confederation of fifteen organizations working together to find lasting solutions to poverty and injustice. Together with individuals and local groups in more than 90 countries, Oxfam saves lives, helps people overcome poverty, and fights for social justice. www.oxfam.org

MEDIA ADVISORY: Adapting for a Green Economy Report Launch

Lauren Zelin — Wed, 15 Jun 2011 18:16:38 -0400

How Will Companies Adapt to a Changing Climate?

The UN Global Compact in cooperation with UN Environment Programme, Oxfam and the World Resources Institute invite you to the launch of the Caring for Climate report entitled “Adapting for a Green Economy: Companies, Communities, and Climate Change”.

The event, to be held in conjunction with the annual Global Compact Board Meeting, will bring together representatives from government, the UN, business and civil society to support the efforts leading up to Rio+20. The launch will explore the nexus between climate change risks and opportunities, sustainable development and climate change adaptation.

Panel discussion followed by a cocktail reception.

When:
Monday, 20 June 2011 5:00 p.m. – 6:00 p.m.

Where:
UN Millennium Plaza Hotel 1 UN Plaza, 44th Street, 28th Floor – Riverview Room New York, NY 10017

Who:
* Mr. Georg Kell, Executive Director, UN Global Compact
* Mr. Munyaradzi Chenje, Head of Policy Coordination and Inter-Agency Affairs, UNEP
* Mr. Raymond C. Offenheiser, President, Oxfam America
* Ms. Janet Ranganathan, Senior Vice President of Science & Research; Member, Executive Leadership Team, World Resources Institute

Why:
When world leaders gathered at the Earth Summit in Rio de Janeiro twenty years ago to sign the first global agreement to tackle climate change, the impacts of climate change on communities and economies were just beginning to be understood, and the role of the private sector in responding to these challenges was only just emerging. But two decades later, climate change is no longer a distant threat looming on the horizon; it has emerged as arguably the greatest global challenge of our time.

And while much of the responsibility to drive climate change solutions that address the needs of the poorest and most vulnerable rests with governments, it has become increasingly clear that business will be an essential partner in preparing for and responding to the impacts of a changing climate and in building a global green economy.

This publication aims to support the efforts leading up to UN Conference on Sustainable Development (Rio+20) in June 2012, as well as the activities, processes, commitments and partnerships that flow from it. Drawing on the results of a 2010 survey of corporate signatories to the UN Global Compact and the UN Environment Programme Caring for Climate initiative, as well as on existing literature, “Adapting for a Green Economy” makes the business case for private sector adaptation to climate change in ways that build the resilience of vulnerable communities in developing countries – and provides useful guidance to business leaders and policymakers alike.

Media:
RSVP by Sunday, 19 June 2011 to media@unglobalcompact.org.

NEWS RELEASE: New Greenhouse Gas Protocol Accounting Standards Available for Public Comment

Jessica Forres — Wed, 03 Nov 2010 12:08:40 -0400

WRI and WBCSD unveil new Product and Supply Chain Standards

Comprehensive global standards that will help business and government understand, measure and manage greenhouse gas (GHG) emissions have entered the final stage and are available for public comment.

These new standards, developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), will help measure the emissions of supply chains and products.

The two standards— the Product Accounting and Reporting Standard and the Corporate Value Chain (Scope 3) Accounting and Reporting Standard— supplement the existing Corporate Accounting and Reporting Standard, which has become the global framework for GHG reporting by companies. The new standards are part of a multi-stakeholder 12-year partnership, the GHG Protocol Initiative, led by WRI and WBCSD to provide real-world solutions to help reduce emissions.

“The business community is taking action to reduce their emissions by finding innovative and cost-effective solutions. The original GHG Protocol Corporate Standard helped businesses understand the impacts of their own operations,” said Björn Stigson, president of the WBCSD. “These two new standards give businesses the tools they need to understand the emissions across the entire life cycle of their products and through their value chains, and manage it accordingly.”

The GHG Protocol Product Standard studies all potential contributions to the emissions of a product, including suppliers, transportation, production and disposal, while the Corporate Value Chain (Scope 3) Standard allows corporations to measure and manage their GHG emissions across their entire supply chain.

“Throughout the process, we are engaging with a wide-range of stakeholders to ensure that these standards are of the highest quality, user-friendly and practical for businesses,” said Jonathan Lash, president of WRI. “These standards will provide an essential resource for businesses so they can track, measure and control their emissions.”

The two standards have already undergone significant input, review, comment and testing over the last two years. A unique feature of the development process is the “road testing” of the new standards. Sixty-two companies from a variety of countries and sectors tested the standards over a six month period and submitted comprehensive feedback on their usability.

The companies involved in the road testing reported that they were able to complete an inventory in conformance with the requirements and found the guidance provided in the standards helpful and practical. Summaries of this feedback are available here. In addition, more than 60 organizations submitted written comments and 350 stakeholders from business, academia, governments, and NGOs attended workshops in Asia, Europe and North America, since the release of the first drafts in November 2009.

Björn Hannappel, Senior Expert Go Green, of Deutsche Post DHL said, “We are very pleased to be engaged in this process as a road testing company of the Product Life Cycle and Scope 3 Standards. We support the inclusive GHG Protocol stakeholder process and feel that by engaging with not only business- but also governments, NGOs and others- a more robust standard is developed that can be adopted around the world. This is key for us as a globally operating company, since we already base our carbon accounting on criteria according to the GHG Protocol and rely on respective standards that are accepted and applicable worldwide.”

This public comment period is the final step in the development process and will be used to make additional revisions. The new standards are expected to be finalized early next year and published in the spring of 2011.

Copies of the standards and comment submittal instructions are available on the GHG Protocol Initiative’s website.

NEWS RELEASE: New Report: Chinese Companies are Improving Environmental Standards Through Supply Chains

Michael Oko — Mon, 25 Oct 2010 10:55:32 -0400

Chinese suppliers can improve their business performance by adopting high environmental standards, according to a new working paper by the World Resources Institute (WRI) and the Institute of Public and Environmental Affairs (IPE). The paper, “Greening Supply Chains in China,” highlights the experiences of five companies in China that have worked to improve their environmental performance.

“China-based suppliers can be effective and innovative in addressing their environmental impacts,” said Ma Jun, Director of IPE and co-author of the report. “But to help these firms become responsible manufacturers, key stakeholders— especially buyers— need to demonstrate that sound environmental practices are valued.”

Many suppliers in China are now required to meet certain sustainability criteria by multinational buyers who have adopted “green supply chain” strategies. Firms that are unable to meet such environmental requirements may be restricted from doing business with their buyers. The impact of these “green supply chain” initiatives is likely to be particularly large on Chinese industry because of China’s role as “the world’s factory” and leading global exporter— accounting for much as 10 percent of the world’s total exports.

“Chinese suppliers must find ways to improve their environmental performance because it is increasingly crucial for the survival of their businesses,” said Ray Cheung, a consultant to WRI and co-author of the report. “Firms that adopt best practices in sustainability will have a competitive advantage over companies that fail to minimize their impact on the environment.”

The report’s case studies detail management processes that the companies used to identify and implement environmental improvements in a transparent manner. One common feature of all five companies is that previous environmental violations led them to work with key stakeholders, such as nongovernmental organizations (NGOs), government agencies and their buyers, to make improvements.

The environmental issues and industries highlighted in the report are:

• Industrial wastewater and energy consumption in the garment industry;

• Industrial wastewater and sanitary waste in the shoe industry;

• Industrial wastewater, biological and chemical waste in the consumer goods industry;

• Air pollution in the leather tannery; and

• Industrial wastewater, and solid and heavy metal waste in the electroplating industry.

The five companies were selected and reviewed by the independent Green Choice Alliance (GCA), a consortium of Chinese environmental experts and NGOs. The GCA represents local community members in an independent effort to assist multinational buyers in tracking the compliance records of their Chinese suppliers, and facilitating corrective actions and public disclosure.

“China’s drive to increase environmental transparency provides a unique opportunity to identify violations and misconduct in globalized manufacturing and supply chains,” said IPE’s Ma Jun. “It also sets the stage for more participatory environmental governance in which corporations collaborate with NGOs and communities to reduce pollution and promote long-term sustainable growth.”

The report is available on WRI’s website: here, and IPE’s website: here.

Greening Supply Chains in China: Practical Lessons from China-based Suppliers in Achieving Environmental Performance

Maggie Barron — Thu, 21 Oct 2010 14:37:52 -0400

Leading corporations all over the world are making environmental performance part of their core business strategy. As part of their efforts, international companies are implementing green supply chain initiatives, under which they require their suppliers to meet certain environmental performance standards. While these green supply chain requirements are starting to have global ramifications, the impacts are particularly significant for Chinese industry because of China’s role as the world’s factory and leading global exporter – accounting for as much as 10 percent of the world’s total exports. Chinese suppliers therefore face new challenges: If they do not meet the environmental requirements of green supply chain buyers, they risk losing their international customers.

The purpose of this report is to highlight examples of five companies operating in China by illustrating the approaches they have adopted to address environmental problems. The report focuses on water pollution within China’s challenging business landscape.

The five case studies presented specifically illustrate:

Management processes adopted by China-based suppliers.
Low-cost solutions that lead to effective results.
Companies that improved their performance after environmental violations.
The role of multistakeholders and independent third parties as drivers for supplier environmental performance.

All five companies highlighted in the best-practice case studies were independently reviewed and selected by the Green Choice Alliance (GCA), a consortium of Chinese environmental experts and nongovernmental organizations (NGOs). The five companies were among the 290 suppliers that were prepared to communicate with NGOs and the public about their environmental performance.

The cases featured in this report were chosen based on the following criteria:

1) the representative nature of the environmental problem; 2) the practicality and effectiveness of the management processes used to solve the environmental problem; and 3) the potential for management processes to be widely adopted by Chinese suppliers in various industries.

It is the authors’ hope that through these case studies Chinese suppliers will gain insights into how they can become green suppliers, enabling them to strengthen their relationships with international buyers and achieve business success.

Minding the Sustainability GAAP

Janet Ranganathan — Thu, 26 Aug 2010 11:38:22 -0400

Limited transparency around corporate sustainability risks can lead to investments that are bad for the environment, and investors’ bottom lines.

Yesterday BP abandoned its hope of bidding on a potentially lucrative exploration license in Greenland. The implication is that its tarnished reputation is undermining its ability to compete for projects. Across the Atlantic, the Tennessee Valley Authority has lost nearly $50 million in power generation during this summer’s heatwave, because the Tennessee river is too hot for the nuclear plants’ cooling towers to function.

What do these two stories have in common? They are both examples of how environmental degradation can hit home for companies. The global environmental crisis, including climate change, water scarcity and ecosystem degradation, isn’t just a problem for “greens.” It also creates significant financial risks for companies and their investors.

Environmental Risks Alter Balance Sheets

Such risks vary from sector to sector but include: potential liability for environmental accidents; the physical impacts of climate change on supply chains; and growing water scarcity in many parts of the world.

BP’s recent crisis generated by the mammoth Gulf of Mexico oil spill is an extreme example of environmental risk. It turned the company’s anticipated net income of $5.6 billion for the second quarter of 2010 into a record $17.1 billion loss.

But in a resource-constrained and warming world, there are many other risks that may significantly alter the balance sheet. For example, research suggests that consumer goods companies could face a loss of earnings if they do not respond to environmental pressures in their supply chains, including physical climate change impacts and public policy responses to them. Specifically, the World Resources Institute (WRI) report Rattling the Supply Chains indicates that such businesses could face a 13-31 percent reduction in earnings before interest and taxes as soon as 2013, rising to 19-47 percent in 2018.

Certain sectors will be heavily impacted by specific risks in vulnerable countries or regions. For example, 79% of planned new power plant capacity in India will be built in water scarce or stressed areas. Since thermal and hydroelectric power plants depend heavily on water for cooling and energy generation, uncertain water supply creates significant risks for domestic power companies.

A Gap in Financial Accounting Standards

Worldwide, current financial accounting standards and generally accepted accounting principles (known as GAAP) fail explicitly to address such risks, which often derive from unsustainable business strategies. They can also miss the opportunities that such challenges create. Superior environmental performance by corporations can translate into lower costs from improved energy and resource efficiency and higher revenues from product innovation and enhanced brand recognition. General Electric’s Ecomagination™ product line is one compelling case in point.

Current financial accounting standards and generally accepted accounting principles fail explicitly to address environmental risks, which often derive from unsustainable business strategies.

Corporate sustainability reports can help fill information gaps on some risks. But sustainability reporting standards, such as the Global Reporting Initiative, remain largely voluntary, and as a result, their uptake is limited. Another recent WRI report Undisclosed Risk, for example, found that developing markets have particularly lagged behind in producing corporate sustainability reports. What’s more, stand alone reports all but guarantee that sustainability remains at the periphery rather than the mainstream of financial and investment decisions. A 2008 KPMG International Survey of Corporate Social Responsibility, for example, found that only three percent of annual financial reports had corporate responsibility information fully integrated into them.

The failure to integrate sustainability as a strategic business issue in annual financial reports means that businesses and investors continue to make investments that are bad for the environment, society and ultimately their own bottom line. As a result, environmental trends continue on a downward trajectory, creating even greater risks for companies, especially those that have not embraced sustainable business strategies.

The Movement for Integrated Reporting

A solution may finally be on its way. A coalition of businesses, regulators, accountants, securities exchanges and not-for-profit groups recently launched an International Integrated Reporting Committee initiative to “create a globally accepted framework for accounting for sustainability.” Jointly convened by HRH Prince Charles’s UK-based Accounting for Sustainability Project and the Global Reporting Initiative, the committee includes participants from the International Accounting Standards Board, U.S. Financial Accounting Standards Board, International Organisation of Securities Commissions, the Big Four auditors - Price Waterhouse Coopers, Deloitte, Ernst & Young and KPMG - and NGOs including the World Resources Institute. The committee intends to present a framework, which brings together financial, environmental, social and governance information in a single “integrated” reporting format, at the G20 intergovernmental summit in France in 2011. The G20 already backs the formation of a single set of reporting standards, and G20 support for broader rules will be crucial to their introduction.

Moving sustainability from the periphery to mainstream investment is an essential next step in preparing the corporate sector to deal with environmental risks. The move won’t be easy. But given worsening environmental trends and the fact that today’s investment decisions will either sustain or degrade the earth’s environment, integrated reporting is both sorely needed and long overdue.

Linnea Laestadius is an intern with the Office of the Vice President for Science and Research at WRI. She is a PhD student in Health and Public Policy and a CLF Farming the Future Fellow at the Johns Hopkins Bloomberg School of Public Health.

NEWS RELEASE: Companies Complete Road Testing of New Global Greenhouse Gas Accounting Standards

Jessica Forres — Tue, 17 Aug 2010 15:12:46 -0400

More than 60 companies have completed the road testing of new global standards designed to help measure the greenhouse gas (GHG) emissions of their products and supply chains.

Developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), the two new GHG Protocol standards –the Product Lifecycle Accounting and Reporting Standard and the Scope 3 (Corporate Value Chain) Accounting and Reporting Standard – provide methods to account for emissions associated with individual products across their life-cycles and of corporations across their value chains.

The 62 companies from multiple sectors and 17 countries started road testing the standards in January. In June, they submitted written feedback on their usability along with final GHG inventory reports. A summary of the feedback is posted on the GHG Protocol website.

“The road testing experience illustrates how developing rules around measurement, reporting, and verification involves complex technical and policy decisions that need real-world feedback to ensure the right balance is achieved between rigor and ease of use while keeping in view the capacity of both experienced and new users,” said Jennifer Morgan, director of WRI’s Climate and Energy Program. “The GHG Protocol approach to develop international standards provides us a model on how we might want to pursue the development of rules on tracking emissions at the country-level as well.”

The companies that road tested the Product Life Cycle Accounting and Reporting Standard reported they had little difficulty completing an inventory in conformance with the requirements and found the guidance provided in the draft helpful.

“We’re really looking forward to having a standard that can be used globally, for communication across a broad range of stakeholders,” said Robert ter Kuile, senior manager of energy and climate change at PepsiCo. “Road testing the Product Life Cycle Standard has enabled us to engage with other multinational organizations and to join in conversations with NGOs, governments, and academic institutions. When you bring these organizations together, to write a standard, that is going to be the standard that everybody follows and PepsiCo wanted to make sure that we not only learned from the process, but that we also had the opportunity to contribute.”

The companies that road tested the Scope 3 Accounting and Reporting Standard found it achievable to complete a Scope 3 inventory and many companies believe it practical to complete one on an annual basis.

“Road testing the Scope 3 Standard has been a helpful process that has allowed us to assess emissions throughout the entire value chain, and to identify areas that require more attention,” said Katie Wallace, sustainability specialist at New Belgium Brewing Company. “We plan to use the results to drive improvements and measure greenhouse gas reductions associated with New Belgium Beer. Because we believe transparency to be a key ingredient in any authentic sustainability effort, New Belgium will share our findings with our customers, coworkers and stakeholders. This process has taken us one step closer to true environmental stewardship.”

The road testers shared similar views on the business value of using the standards. Most road testers agree that the standards help in identifying GHG reduction opportunities and prioritizing reduction efforts; engaging suppliers and enabling supply chain GHG management; understanding risks and opportunities associated with emissions in the supply chain; creating competitive advantage and product differentiation; and improving credibility and transparency in GHG reporting.

The next steps will be to revise the standards based on feedback from the Road Testers as well as the Steering Committee and Technical Working Groups. The revised standards will be released at the end of September for a 30 day public comment period. The text will be finalized at the end of 2010 and the final versions will be published by March 2011.

Companies that participated in the road testing exercise include: 3M, Abengoa, Acer Inc, Airbus S.A.S, AkzoNobel, Alcoa, Amcor, Ampacet, Anvil Knitwear, Inc., Autodesk, Inc., Baoshan Iron & Steel Co. Ltd, BASF SE, Belron International, Bloomberg LP, BT plc, Coca-Cola Erfrischungsgetränke AG, Danisco A/S, Deutsche Post DHL, Deutsche Telekom AG, DuPont, Ecolab, Ford Motor Company, General Electric, Gold’n Plump Poultry, LLC, Herman Miller, Inc, IKEA, Italcementi Group, JohnsonDiversey, Kraft Foods, Kun Shan Tai Ying Paint Co, Ltd., Lenovo, Levi Strauss & Co., Mitsubishi Chemical Corporation, National Grid, New Belgium Brewing¸ Ocean Spray Cranberries, Otarian, PE International, PepsiCo, Inc., Pfizer, Pinchin Environmental Ltd., PricewaterhouseCoopers (Hong Kong), Procter & Gamble Eurocor, Public Service Enterprise Group, Inc., Rogers Communications, SAP AG, SC Johnson, Shanghai Zidan Food Packaging and Printing Co., Ltd., Shell International Petroleum Company Ltd., Siemens AG, Suzano Pulp and Paper, Swire Beverages, TAL Apparel Limited, Tech-Front (Shanghai) Computer Co., Ltd. / Quanta Shanghai Manufacturing City, Veolia Water, Verso Paper Corp., Webcor Builders, WorldAutoSteel.

DNV, KPMG, and PwC provided support to road test the 3rd party assurance guidance.

New Website and Survey Look Behind-the-Scenes at Ecolabels’ Environmental Claims

Jeff Rodgers — Thu, 01 Jul 2010 16:59:32 -0400

Ecolabelindex.com allows consumers and companies to compare green certifications side-by-side.

As consumers and companies become increasingly aware of their environmental impact, a surge of ecolabels have flooded the marketplace. Today, hundreds of ecolabels worldwide compete to tell us which products are best for the planet. These colorful stamps on labels declare products to be “carbon neutral”, “forest safe”, “fairly traded”, or any number of standards of sustainability. But in the self-regulated ecocertification industry, how can consumers and institutional buyers really know what these stamps of approval mean?

The 2010 Global Ecolabel Monitor

Enter the 2010 Global Ecolabel Monitor – a collaboration between the World Resources Institute and ecolabelling.org founders Big Room Inc. that gives a behind-the-scenes look at how different ecolabels certify their products. We invited 340 ecolabels in 42 countries to participate in a survey of their performance, organizational structure, and verification systems. The results are housed at ecolabelindex.com, a web resource that gathers ecolabels onto a common platform to make it easier for consumers and institutional buyers alike to interpret and compare them.

Visit ecolabelindex.com

The survey covers questions such as how the ecolabels’ rules were created and how they are funded. It also asks how the ecolabel is enforced, for example via site visits, audits, and/or third party verification.

Increasing Transparency and Accountability in Green Certification

The Global Ecolabel Monitor illustrates that there is clearly scope for improvement in ecolabel transparency and accountability. Over half of the ecolabels we invited to participate were unreachable or unwilling to share information about the metrics underlying their certification. Additionally, less than 30% of the ecolabels surveyed recognized, or were recognized by, any of their fellow labeling organizations, making it impossible to know for certain if one ecolabel’s interpretation of “green” would pass muster with their peers.

More than a third of US consumers say they are willing to pay a premium for eco-friendly products. But ecolabels, like nutritional labels on food, are only helpful when they are clear, transparent, and consistent from product to product. Imagine if one cereal box only had calories listed and another had only protein content; and both measured their nutritional content in different ways. How would you make an informed decision about which box was healthier?

From environmentally-conscious individuals shopping for themselves and their families, to institutional buyers stocking the shelves of multi-billion dollar retailers, purchasers of all sizes need transparent, concise comparisons to decode the ecolabels on the products they are choosing between. Improving transparency in the ecolabel marketplace is an important first step to reduce consumer confusion and increase credibility. Ecolabelindex.com will continue updating and tracking the developments of ecolabels, making it easier for consumers and companies to identify and select the ecolabels that are credibly, transparent and effective.