The CSR Newsletters are a freely-available resource generated as a dynamic complement to the textbook, Strategic Corporate Social Responsibility: Sustainable Value Creation.

To sign-up to receive the CSR Newsletters regularly during the fall and spring academic semesters, e-mail author David Chandler at david.chandler@ucdenver.edu.

Friday, March 28, 2025

Strategic CSR - Buzzwords

I am increasingly seeing headlines such as this one, which appeared recently in the article in the url below:

"Don't Call it ESG, Call it Resilience."

In particular:

"There's a new buzzword in sustainability circles when it comes to investing in renewables and clean technologies: resilience."

The pertinent term here, I think, is "buzzword," which implies exactly the right amount of thought that has gone into this latest phase of the environmental conversation. To me, it feels more like a reaction to what suddenly cannot be said (i.e., ESG) than reflecting any serious attempt to chart a measured and coordinated approach to tackling climate change:

"'In the beginning you had 'social' and 'responsible investing' and then it became 'ethical investing' and then a whole host of other things have sort of emerged from that,' said Jason Britton, chief product officer at asset manager Sphere. ''Sustainability' was a buzzword for a really long time then 'regenerative' and 'triple bottom line,'' he said. 'This is an industry's effort to describe an incredibly complex thing in a series of one or two marketing words. 'Resilience' is the bingo buzzword of the day.'"

As a result, we should expect a demise similar to all the other acronyms or "buzzwords" that have come and gone, whether CSR, SRI, ESG, sustainability, green, offsets, and so on. In my world, words matter because, when ill thought through, they reveal underlying biases and ignorance, or simply an attempt to greenwash (to borrow another fluffy phrase). The sooner we realize that trends or buzzwords are not the way to tackle a fundamental and existential threat to humanity (see Strategic CSR – Jeans), the greater the chance we will have to do something serious about it:

"For investors, 'resilience' is the new catch-all term for investments aimed at mitigating the effects of climate change on their businesses. Often seen alongside terms like 'adaptation finance' or 'transition finance,' ESG professionals are using the word increasingly in marketing and communications related to their investments."

The sentiment 'moving deck chairs around on the Titanic' comes to mind. Of course, climate change is not waiting while we decide whether we are serious.

Take care
David

David Chandler
© Sage Publications, 2023

Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler6e  
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/


Don't Call it ESG, Call it Resilience
By Yusuf Khan
February 28, 2025
The Wall Street Journal
 
Posted by David Chandler at 5:40 AM

Tuesday, March 25, 2025

Strategic CSR - Mining

The article in the url below makes the case for reviving mining in the U.S. for the key raw materials required to transition to a more sustainable energy industry:

"Although America has abundant deposits of many of the critical minerals that go into our vehicles, electronics and buildings, these materials are mostly mined abroad in poorer nations where labor is cheap (or worse, workers are enslaved) and environmental laws are more permissive, rarely enforced or easily sidestepped with bribes."

The argument is that, by outsourcing much of this extraction, we currently focus on poorer societies where the materials can be mined more cheaply, primarily because the standards to do so are so low:

"The decline of domestic mining means that Americans are outsourcing the environmental and social costs of our inexpensive consumer goods to lower-income nations. More than 70 percent of the world's cobalt, sometimes called the blood diamond of electric vehicle batteries, comes from the Democratic Republic of Congo, where child labor and sexual violence are rampant in mines. About half of the world's nickel, another key ingredient in electric vehicle batteries, comes from mines in Indonesia, some of which have wiped out almost 200,000 acres of rainforest amid allegations of operating illegally on Indigenous land."

So, mining domestically would introduce higher standards, by definition; it is also required so that increased supply can match growing demand:

"A United Nations study found that meeting international climate goals by 2030 could require building as many as 80 copper mines, 70 lithium mines and 70 nickel mines to supply the materials for electric vehicles, solar panels and a host of other low-carbon technologies."

And, the article advocates for a consumer-led component to the economic equation, with individual customers willing to pay the (relatively) small premium that domestic production would generate:

"Many of us are already paying more for responsibly sourced goods, such as chocolate and coffee. We should demand the same for our smartphones and batteries. … Although mining will never be zero-impact, it has the potential to be fair and responsible."

Take care
David

David Chandler
© Sage Publications, 2023

Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler6e  
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/


This Dirty Industry Is Better Off Operating in America
By Stephen Lezak
July 28, 2024
The New York Times
Late Edition – Final
SR8
 
Posted by David Chandler at 8:14 PM

Thursday, March 20, 2025

Strategic CSR - Time

This short video presents a dramatic, humbling, and emotional analysis of human perceptions of time (see also Strategic CSR – The Long Now). It places our lives in the context of the history of the universe (as we know it) in a way that provides insight and perspective:

The takeaway is grounding in that it challenges us to make the most of the brief moment we have been given, together with the implicit demand that we leave things better than we found them.

Take care
David

David Chandler
© Sage Publications, 2023

Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler6e  
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/

Posted by David Chandler at 2:38 PM

Wednesday, March 19, 2025

Strategic CSR - Mining

The article in the url below provides an interesting perspective on the extraction industries – especially comparing the raw materials of the past with those of the present and future:

"The mining industry is currently one of the most significant contributors to planet-warming emissions – but it's on track to become one of the most important sectors for a net-zero future."

A feature of the mining of the future is that overall demand will increase (e.g., "Annual demand for energy-transition metals will grow fivefold by mid-century from 2023 levels"), but the amount of materials extracted from the ground is predicted to decrease:

"Specifically, we'll need almost no coal – which still contributes significant revenues to mining companies. In fact, all the refined metals needed to reach net zero by 2050 will add up to less than the amount of coal mined in 2023 alone, according to think tank Energy Transitions Commission."

This graphic accompanying the article presents this contrast in stark comparison:
 

Part of the reason for this phenomenon is that the recyclable rates of the non-coal raw materials is much higher. There are other qualifiers:

"It's worth noting these figures do not include the full weight of extracted ore, which often contains a small concentration of metal. The figures also don't show the weight of extracted oil and gas. This is important because, all combined, fossil fuel taken out of the ground today still outweighs mined ores."

I have not often seen the extraction industry discussed in terms of a positive contribution to a sustainable future.

Take care
David

David Chandler
© Sage Publications, 2023

Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler6e  
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/


Net Zero Needs More Metals, But Less Extraction From The Earth
By Akshat Rathi
September 10, 2024
Bloomberg
 
Posted by David Chandler at 7:29 AM

Thursday, March 13, 2025

Strategic CSR - Whales

The video in the url below is a short documentary about "whale falls." This term describes the phenomenon of whale carcasses that sink to the bottom of the ocean, after the whale dies, and provide nutrition that supports ecosystems of animals that have evolved to survive in otherwise nutrient-poor parts of the deep ocean:


The video reminded me that humans are the only animal on the planet that produces any 'waste.' Every other animal only produces things that are of value to some other organism – we are the interruption of an otherwise perfectly sustainable ecosystem.

Take care
David

David Chandler
© Sage Publications, 2023

Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler6e  
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/

Posted by David Chandler at 6:04 PM

Tuesday, March 11, 2025

Strategic CSR - ESG

At a time when ESG is being attacked on all sides (the acronym, rightly so; the underlying sentiment, incorrectly), Barron's annual ranking of the "Top 100 Sustainable Companies" appeared in the article in the url below. You might be surprised at the No.1 company on the list (for the second year running):

"Clorox holds the crown for the No. 1 spot on the list for the third consecutive year. The consumer staples company, which owns household brands such as Burt's Bees, Glad, and Hidden Valley Ranch, scores high based on environmental factors, product safety and quality, and governance. While last year the company stood out for achieving gender pay equity, this year it gets kudos for linking executive compensation to how well they meet their sustainability goals."

In fact, I was quite surprised at how many manufacturing companies made the Top 10 in the table accompanying the article: 


Overall, the story was surprisingly positive:

"… while ESG critics have been cranking up the volume, the better barometer of the sustainability movement's strength comes down to a simple question: How committed are large companies to their sustainability goals? For now, most aren't backing off them, and many are making significant advancements."

As with such lists, the methodology was biased and opaque, but at least the ultimate DV seems appropriate – "operations and risk":

"The 100 companies on our list this year span market capitalizations ranging from American States Water's $2.8 billion to Nvidia's $3.4 trillion—companies that were ranked No. 73 and No. 74, respectively, on their sustainability. To evaluate all the companies, Calvert considered practices under five themes—the planet, workplace, customers, community, and shareholders—and assigned each company weightings for the categories based on what is most relevant to their business operations and risks."

It was good to see a positive narrative around a topic that has been nothing but doom-and-gloom for several months:

"The symbiosis between sustainability and efficiency at the top 100 companies often translates well for investors. In the first six years of Barron's ranking, the group outpaced the S&P 500. The 100 badly trailed the index's 25% and 26% returns including dividends in 2024 and 2023, respectively. But in those years, seven technology stocks fueled most of the S&P 500's return because the index is weighted by market capitalization."

Take care
David

David Chandler
© Sage Publications, 2023

Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler6e  
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/


Top 100 Sustainable Companies: Coping with Anti-ESG Sentiment
By Karen Hube
February 24, 2025
Barron's
Late Edition – Final
18, 20, 22
 
Posted by David Chandler at 8:02 PM

Thursday, March 6, 2025

Strategic CSR - Greenhushing

In contrast to the last newsletter that focused on greenwashing, the article in the url below notes that the phenomenon of greenhushing continues to spread:

"Greenhushing is the inverse of greenwashing: Companies are devoted to combating climate change yet reluctant to publicize their climate efforts. This phenomenon is emerging on both sides of the Atlantic Ocean, driven by different factors."

Looking on the bright side, this does not necessarily mean corporations are pulling back from their resource and risk-related commitments, but just that they are not advertising what they are doing:

"In response to the changing political landscape, many executives in corporate America are dropping the mention of 'climate change' in meetings. Instead, they start to highlight non-climate benefits of their work, such as job creation and economic growth."

The contrast in patterns of behavior with Europe is interesting. There, corporations are also minimizing their public statements on sustainability related issues, but for a very different reason:

"In Europe, where climate change hasn't completely fallen off governments' agendas, companies are also keeping their climate actions away from public sight due to the risk of being seen as greenwashing. Overstating green claims cause reputational damage that is hard to repair."

As a result:

"In 2024, 63 out of the 100 largest publicly listed firms in the UK under-promoted their work on environmental protection, according to an analysis by market research firm Connected Impact. … When it came to US companies, the desire for staying unnoticed was even greater — as many as 67 major public and private firms resorted to greenhushing."

I have long understood that low-cost strategy companies like Walmart do not advertise to customers their progressive work on sustainability in their supply chain, but that is due to the danger of misperception around the price being charged (people believe that 'green' products are more expensive; see Strategic CSR – Greenhushing). In this case, it is a different stakeholder (the government) that seems to be driving greenhushing, with uncertain implications:

"Some worry the silence risks damaging consumers' trust and weakening peer pressure needed for motivating more companies to go green. While others say it is a wise business decision in difficult times."

Take care
David

David Chandler
© Sage Publications, 2023

Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler6e  
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/


The sound of greenhushing
By Coco Liu
March 4, 2025
Bloomberg
 
Posted by David Chandler at 7:32 PM

Monday, March 3, 2025

Strategic CSR - Greenwash

The articles in the two urls below offer contrasting approaches by different countries to the issue of preventing greenwash in finance. In the first article, the Swiss government (rather optimistically) is happy to trust the firms in its finance industry to self-regulate:

"Switzerland's finance sector can regulate its own members when it comes to combating the miss-selling of sustainability-themed investment products, the government said. The Federal Council had given banks, insurers and other finance firms until August to come up with an effective self-regulation framework on greenwashing."

In contrast, and employing a modicum of commonsense, the Australian government is proposing to introduce a new labeling system that will add substance to the ambiguous meaning of sustainable:

"The Australian government … will establish labels and disclosures for investment products marketed as 'sustainable,' including funds run by the superannuation industry, after a public consultation in early 2025, according to a sustainable finance framework released on Wednesday. The plan also calls for large businesses and financial firms to incorporate climate disclosures based on the Australian Accounting Standards Board's guidelines, which are due to be finalized in August."

The key to the difference is in the article headlines – while the Swiss will allow finance firms to "police themselves," the Australian government is planning to "crack down with new regulations." I wonder which approach will be the most effective in reducing the amount of misleading information and behavior that pervades all things sustainable?

Take care
David

David Chandler
© Sage Publications, 2023

Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler6e 
Strategic CSR Simulation: http://www.strategiccsrsim.com/
The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/


Swiss Say Finance Firms Can Police Greenwashing Themselves
By Bastian Benrath
June 19, 2024
Bloomberg

Australia Cracks Down on ESG Claims with New Regulations
By Ishika Mookerjee
June 19, 2024
Bloomberg
 
Posted by David Chandler at 8:21 PM
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