Not only will her company meet its biggest customers’ demands for lowered impacts, its CFO will also have the information needed to compile and share an environmental P&L statement like Puma’s. Having lost the sale, the CEO tells the VP of design that all products for next season must have cumulatively better VCI ratings. Developed jointly by multiple players in an industry, a VCI draws on objective data produced by life-cycle analysis efforts and covers a range of categories, such as land use, water, energy, carbon, toxics, and social welfare. Each year EPA releases the Advancing Sustainable Materials Management: Facts and Figures Fact Sheet, formerly called Municipal Solid Waste in the United States: Facts and Figures. Recycling one ton of paper saves 17 trees. California AB 32, passed in 2006, requires a statewide 25% reduction of greenhouse gas emissions by 2020 against a 1990 baseline. Investors now see that companies’ water use, carbon emissions, stance toward labor, and supply chain management practices have a material impact on their valuations. DBA Doctorate of Business Administration in Sustainability Management. Graduate . 17. Once a voluntary global standard is being used by enough key stakeholders, the alignment will yield the political will for policy measures that ensure that the true costs of products across all sectors and markets are reflected in their price. Together they make for a bewildering set of arbiters. Still the perception lingers in many quarters that sustainable investing leads to lower market returns because it limits the universe of securities to draw from. Progress will be fastest if we can create a system in which the products that cause the least harm also have the lowest price. Accreditations & Rankings We must connect the dots between climate change, water scarcity, energy shortages, global health, food security and women’s empowerment. The organization now has teams working on the arduous task of quantifying the contribution of ecosystems to human life. Our companies, Patagonia and Blu Skye, have devoted decades to the business of sustainability, and never before have we felt the optimism we feel now. Investors rely on sources like the Global Reporting Initiative (a standard used by 2,000 companies worldwide to report their environmental, social, and economic performance) and the Carbon Disclosure Project for insight into corporate practices and results. Real change will come as ecosystem service valuations filter down to individual companies’ bookkeeping. In essence, this is a focus on the economics of sustainable development. The concept of circular economy looks beyond societies’ current take-make-dispose model to create a more restorative economy which designs out waste, keeps products and materials in use for as long as possible and regenerates natural systems. The first — related to an enduring obsession among climate wonks— has to do with the limitations of existing modeling. More recently, at the 2010 Convention on Biological Diversity, in Nagoya, Japan, World Bank president Robert Zoellick announced a major project that enables emerging and developing countries to arrive at valuations of what he calls their natural capital, to help their leaders make more-informed development decisions. Prototype quickly; then refine. China is the world’s top polluter emitting 10,357 metric tons of carbon dioxide, followed by the United States, India, Russia and Japan. Calculations and accounting like this will pave the way for companies to internalize costs they have ignored in the past as externalities. 15. Regimes like “cap and dividend”—which proposes to tax carbon suppliers, raise the price of energy-intensive products and services, and then rebate all those costs back to consumers— would surely drive rapid market-based innovation. And yet collectively we have not been making progress on reducing the damage business does to the world. Inclusive and sustainable economic growth can drive progress and generate the means to implement the Sustainable Development Goals. Sustainable economy is founded on the economic development that aims to satisfy the needs of consumers in a way that sustains natural resources and the environment for future generations. We see many signs of gathering will, too: The trends outlined here are being driven in large part by passionate businesspeople. First, investors will benefit as the “brand view” afforded by a VCI gives them a means of comparing the sustainability performance of publicly traded companies. The term sustainability has its most known roots in the 1987 Brundtland Report which officially defined sustainable development for the first time. This chapter reviews the literature on the economic … Those standards compete and overlap in multitudinous ways. The SAC’s index called for separate measures of various environmental impacts—energy, water, carbon, air, toxics, biodiversity, and land use—and social impacts. Agricultural Emissions could be reduced by as much as 70% by adopting a vegan diet and 63% by adopting a vegetarian diet. Even without such alignment (and notwithstanding the failure of the Copenhagen climate conference) we are seeing interesting legislation proposed. Four steps towards a more sustainable global economy 10 January 2018, New York. The two code-named their partnership David and Goliath. Achieving economic growth and sustainable development requires that we urgently reduce our ecological footprint by changing the way we produce and consume goods and resources. Think back to the first trend, calculating the costs of externalities: The developments in the investing world go hand in hand with it. Wir stellen vor: Samsungs Fakten & Zahlen. We believe our road map to sustainable business offers that vision. Corporate social responsibility (CSR) primarily hinges on each company’s core business, which by dint of globalisation impacts on economic, social and environmental conditions. Sustainability will simply be how business is done. 21. The World Economic Forum is an independent international organization committed to improving the state of the world by engaging business, political, academic and other leaders of society … The 3.0 era will render the term redundant. A sophisticated fund manager, accessing the same VCI tool as our blouse designer, would spot—perhaps faster than the designer would—the fact that her firm’s cotton order is more likely to go to India than China. 36 million people live in modern slavery today, many of who are working in the supply chains of Western brands such as that of the fast fashion industry. 25. Because sustainability cuts across industries and sectors of the U.S. economy, defining just what contributes to the green economy … The focus shifted from cost reduction to innovation, and initiatives began to consider whole value chains. A dizzying array of labels has cropped up in response to companies’ desire to communicate to consumers their environmental efforts. Sustainable Consumption and Production (SCP) Action Plan. Outcome 3: Trillion dollar markets open up. Examples show that this is exactly where limits to growth imply more sustainability. Companies that want access to such rewards must voluntarily provide a level of transparency into their operations that goes beyond regulatory reporting requirements. What happens when the trends we’ve just described combine to fuel one another? Sustainability If you like these facts … The companies in the apparel coalition are enthusiastic about the VCI’s clear role in helping their executives, managers, and employees make better choices based on fuller awareness of their consequences. The use of water efficient fittings and fixtures has the ability to cut water use in homes by 45%. Capital costs represent expenses incurred when setting up the process. 1196 Gland, Switzerland, BASE Milano - SUMAS Campus - Via Tortona, 56 If that’s true—and the proposition makes sense given that sustainability innovation is complex and requires real talent—it would clearly pay off in many ways. Just as important as the progress in ecosystems services valuation have been recent shifts in the world of socially responsible investing. Water use has grown at more than twice the rate of population increase in the last century. WITNESS calls this “video advocacy” and urges people to “See It, Film It, Change It!” As the parties affected by corporate activity move rapidly from being atomized to getting organized, sophisticated fund managers now see the material risks associated with sustainability issues, and consequently they have shifted their focus from companies with lower expenses to companies better positioned to sidestep the biggest threats investors perceive to their continued growth. Happily, most of us also care about these things directly. Further, given the transparency of the data and calculations involved, consumers could delve deeper into a rating if they chose. Energy is the dominant contributor to climate change, accounting for around 60% of total global greenhouse gas emissions. In some cases, yes; it is a misconception that if stock-picking is guided by social responsibility, subpar market returns must be accepted. That evolved into a more strategic stance—let’s call it Sustainability 2.0. From there, it’s a short hop to the second way that fund managers will use VCIs. The concept of circularity allows us to advance sustainable consumption and production and the transition to inclusive green economies: how to reduce and eliminate waste and pollution through intelligent design; how to keep products and materials in use; and how to regenerate and grow natural wealth through economic and fiscal policies that nurture and embrace nature-based solutions. Expert support for comments, appeals, and litigation 4. Because many of these impacts have been hard to gauge with any precision—or to assign to individual businesses with fairness—their costs have remained external to businesses’ accounting. I would like to receive updates on relevant programs, application deadlines, invites, news and offerings. International Campuses We provide support for the sustainability initiatives of non-profits, government agencies, and businesses. And industries are converging on standard indices by which to rate products’ sustainability and seek improvements throughout their value chains. We have mentioned the problem of fragmentation in ecolabels development. Companies are now recognizing that consumers respond resoundingly when, in considering products in a category, they’re presented with one, uniform rating. But here, again, the tide is turning. And as the true costs of manufacturing products become visible, any decisions to lower those costs will be dramatically leveraged to the company’s benefit, because they will likewise be visible to fund managers and bankers. IBCP. First, “prices” are now being calculated for many things that had been considered priceless; second, capital is flowing into companies known to manage those costs well; and third, indices are being established that allow disparate contributors in a supply chain to converge on sustainability standards. Less economic harm caused by increased weather-related damage Sustainable finance makes sustainability considerations part of financial decision-making. Fun Facts about Sustainability Fun Facts about Sustainability. Even those concerned about only business and not the fate of the planet recognize that the viability of business itself depends on the resources of healthy ecosystems—fresh water, clean air, robust biodiversity, productive land—and […]. Progress in each area spurs progress in the others, with the result that the long-sought alignment of a firm’s prosperity with the best interests of the planet seems not only possible but inevitable. Here are 30 facts about sustainability to help connect the dots: 1. As the rise of mutual funds turned average citizens into investors, niche funds were established to provide assurance to the socially minded that their money was not supporting business activities they found objectionable. It commissioned PriceWaterhouseCoopers to help develop the EP&L statement, and both companies hope to create a model robust enough to be adopted by others. 22. It supports the shift towards sustainable growth via a resource-efficient, low-carbon economy. This initial version uses qualitative indicators to measure impacts across a product’s value chain, except in the materials category, where the impacts were measured using quantitative life-cycle data. The SAC envisioned that retailers would use its index to compare the sustainability performance of brands they might stock, manufacturers would use it to vet supply chain and other vendors, and designers would use it to specify products and processes least harmful to the planet. Sustainable finance is needed to implement the Commission’s strategy towards achieving the SDGs. An example is Ikea’s use of the Forest Stewardship Council, an independent network of third-party certifiers that accredits sustainable logging and forest management practices. When organic matter is composted, organic matter is converted into stable soil carbon, “while retaining water and nutrients of the original waste matter.” This results in carbon sequestration and the production of a high quality fertilizer. All rights reserved. To appreciate how these three views mitigate impacts, imagine the CEO of a casual-apparel maker in a meeting with the head merchant of the company’s largest customer. 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