Strategic CSR - Trees

The article in the url below reports on an encouraging application of science by a U.S.-based nonprofit (World Forest ID) to solve a specific supply chain challenge:

"Scientists are embarking on an effort to keep sanctioned Russian timber out of Europe by mapping the unique chemical fingerprints of trees, a process that could be used to vet corporate supply chains for other banned commodities."

In this case, the technology was used to enforce economic sanctions, but it is a small step to imagine how it could be used to verify the source of other rare and/or protected raw materials:

"The project aims to bring science to bear in a fight by companies and governments to stop illegal wood from seeping into timber supply chains—complex, difficult-to-police networks of logging companies, sawmills, wood manufacturers and traders."

It is encouraging to see that some companies see the potential application:

"Although work on the database is ongoing, furniture giant IKEA has already used it to vet suppliers for sanctioned timber after the war forced it to revamp its supply chain. Belgian authorities have also employed it to seize more than 260 tons of illegally shipped Russian timber."

And, the potential seems clear:

"If scaled up, the project could have broad implications for how companies source a range of other agricultural commodities, such as cotton and cacao, which have been linked to environmental and human rights abuses."

The science, with the aid of artificial intelligence, is logical in its approach:

"World Forest ID currently uses two tests to identify the chemical composition of wood samples. One measures the ratios of stable isotopes, which vary based on factors such as rainfall or temperature. The other test measures trace elements such as magnesium and copper, which vary based on the soils in which trees grow."

The results are encouraging:

"World Forest ID's model identified false origin claims in 40% to 60% of cases. … [Victor Deklerck, World Forest ID's head of science] said the test was designed to be conservative to minimize the chance of incorrectly identifying shipments as illegal."

Take care

David

David Chandler

Strategic Corporate Social Responsibility: Sustainable Value Creation (6e)

© 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/

Science Used to Police Banned Russia Timber

By Dylan Tokar

June 11, 2024

The Wall Street Journal

Late Edition – Final

B1, B4

https://www.wsj.com/articles/keeping-sanctioned-russian-timber-out-of-the-eu-is-tricky-this-nonprofit-has-a-solution-1bf366b0

 

Strategic CSR - COP 29

I am interested in scale. It is central to meaningful change, in whatever topic you are discussing. But, it is particularly relevant to the sustainability discussion, partly because of the size of the challenge, but also given the time constraints we are working within.

It is in this light that I saw this quote, from the article in the url below, discussing the effort at COP 29 to generate sufficient financing (from developed to developing economies) to begin tackling climate change worldwide:

"Getting from billions to trillions is a big deal. To give you an idea, one billion minutes will take up just over 1,900 years. One trillion minutes lasts for nearly 2 million years."

No matter how many times I read that, it still blows my mind.

Take care

David

David Chandler

Strategic Corporate Social Responsibility: Sustainable Value Creation (6e)

© 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/

COP29: Searching the Seat Cushions

By Siobhan Wagner

November 13, 2024

Bloomberg

https://www.bloomberg.com/news/newsletters/2024-11-13/cop29-searching-the-seat-cushions

 

Strategic CSR - Goalposts

What to do when you face the likelihood you will fail to reach a goal you set yourself only a short while ago? Well, you move the goalposts, of course. Or, at least, that is what you do if you are a large corporation that is having second thoughts about your public commitment to reduce plastic waste, as indicated in the article in the url below:

"In 2020, dozens of major companies joined the U.S. Plastics Pact, signaling a commitment to minimizing plastic waste. Their goals included phasing out plastic straws, cutlery and intentionally-added PFAS, also known as "forever chemicals"; recycling or composting half of their plastic packaging; and making sure 100% of plastic packaging would be reusable, recyclable or compostable—all by 2025."

After all, the companies that signed this pledge are responsible for up to a third of all plastic waste in the U.S.:

"Signatories include major brands like General Mills, Nestlé, Kraft Heinz and Coca-Cola Co., the largest known contributor to global branded plastic waste, according to research published in the journal Science Advances. Retailers like Walmart and Target and packaging and materials suppliers also signed."

While all the companies have reiterated their commitment to reducing plastic waste, of course, the targets will need to wait a little longer:

"Now, with the 2025 deadline close at hand, the U.S. Plastics Pact has published an updated set of objectives. They look a lot like the 2020 goals, with a key difference: Many of the target dates have been pushed back to 2030."

OK, so one reconsideration is understandable. After all, this is difficult stuff, right?

"It is not the first time companies have pushed back timelines for aggressive recycling targets. Coca-Cola and Nestlé both made public promises as far back as 2007 and 2008 that didn't come to fruition, according to the Conservation Law Foundation, an environmental advocacy group."

As always, it is easy to find reasons why we cannot make the progress we need to make. Ultimately, though, we either make the changes we need to, or we do not:

"Today, less than 10% of plastic waste in the U.S. is recycled annually, according to a 2023 report from the National Academy of Sciences. While companies frequently tout pilot projects for plant-based plastics or paper bottles, the problem is expected to get worse in the future. Recent projections have found that plastic waste could triple by 2060, according to the Organization for Economic Cooperation and Development."

Take care

David

David Chandler

Strategic Corporate Social Responsibility: Sustainable Value Creation (6e)

© 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/

Companies Push Back Plastic-Waste Goals

By H. Claire Brown

June 11, 2024

The Wall Street Journal

Late Edition – Final

B10

https://www.wsj.com/articles/companies-kick-the-plastic-can-down-the-road-again-f503b8b0

 

Strategic CSR - True costs + prices

The article in the url below introduces the concept of true cost accounting:

"As pricey as a run to the grocery store has become, our grocery bills would be considerably more expensive if environmental costs were included, researchers say. The loss of species as cropland takes over habitat. Groundwater depletion. Greenhouse gases from manure and farm equipment. For years, economists have been developing a system of 'true cost accounting' based on a growing body of evidence about the environmental damage caused by different types of agriculture."

At first glance, I equated this to the lifecycle pricing that is a component of strategic CSR. But, on reading further, the article makes clear that the people at True Price (the Dutch nonprofit the authors worked with to generate the data in the article) do not want to alter prices (by embedding all costs), but instead want to place the 'true cost/price' next to the actual price (as a signal to impact behavior). In other words, they want to charge the current price and advertise the true cost, rather than charging the true price:

"Now, emerging research aims to translate this damage to the planet into dollar figures. By displaying these so-called true prices, sometimes next to retail prices, researchers hope to nudge consumers, businesses, farmers and regulators to factor in the environmental toll of food. The proponents of true cost accounting don't propose raising food prices across the board, but they say that increased awareness of the hidden environmental cost of food could change behavior."

The data is still imperfect, but is more comprehensive than I have seen elsewhere, demonstrating the extent to which costs we incur today are externalized onto future generations. Take beef, for example, where the retail price for 1lb is listed as $5.34, but the "estimated full price" is listed as $27.36 – an "estimated environmental cost" of $22.02 that is currently not being charged.

While I understand why they are proposing this less conflict-ridden approach, and agree the signal will have some effect, I also think the impact of this approach will likely be considerably weaker than directly changing the price.

Take care 

David

David Chandler

Strategic Corporate Social Responsibility: Sustainable Value Creation (6e)

© 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 Hidden Environmental Costs of Food

By Lydia DePillis, Manuela Andreoni, and Catrin Einhorn

September 19, 2024

The New York Times

https://www.nytimes.com/interactive/2024/09/19/climate/food-costs-protein-environment.html

 

Strategic CSR - Electricity

The article in the url below presents some fascinating graphics about how electricity in the U.S. is made – specifically, what proportion of electricity is generated using coal, natural gas, petroleum, nuclear, wind, and solar. The article starts with the country as a whole, mapping the way electricity generation has evolved over the past two decades:

"Natural gas surpassed coal as the country's top source of power in 2016, and renewables like wind and solar have grown quickly to become major players in the U.S. power system."

The article presents this information in terms of a longitudinal graphic, from 2001 to 2023:

The article contains a similar graphic for each of the country's 50 states, and the variance among states is significant, from Nevada:

"… natural gas became the top source of electricity generation in 2005, earlier than in many other places. More recently, solar power has surged there."

… to Iowa:

"Wind has taken off … over the past two decades, beating out coal in 2019 to become the state's largest source of power generation."

… to Wyoming:

"… where coal still dominates, alternative sources of power have made steady gains."

While the shift to renewables is notable, however, fossil fuels continue to provide the source of the majority of electricity generated in the U.S.:

"[In 2023], coal was the top electricity fuel in 10 states, down from 32 states in 2001. Natural gas largely took over during that time, but wind also emerged as a leading power source across the Midwest."

Take care

David

David Chandler

Strategic Corporate Social Responsibility: Sustainable Value Creation (6e)

© 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/

How Does Your State Make Electricity

By Nadja Popovich

August 2, 2024

The New York Times

https://www.nytimes.com/interactive/2024/08/02/climate/electricity-generation-us-states.html