Strategic CSR - Microsoft (+ Delta)

The article in the url below from Bloomberg Green Daily's newsletter is disappointing, for many reasons:

"Staff at Microsoft have told some developers of carbon removal credits that the company is pausing what is currently the world’s biggest program for financing the extraction of CO2 from the atmosphere."

To give you an idea of how big a blow this is to the market for carbon removal credits, the chart accompanying the article makes the extent of Microsoft's impact abundantly clear:

 

 To be specific:

"Microsoft is by far the largest investor in removal credits, having set an ambitious goal to be carbon negative by 2030. The company is engaged in deals across a variety of technologies, with Bloomberg estimating that its purchases in 2025 accounted for 96% of the entire market."

The article develops a line of argument that seeks to explain the decision to pull back but, in the process, instead makes clear why Microsoft's continued engagement is more essential than ever:

"While Microsoft has expanded its carbon removals program, the company’s greenhouse gas emissions have increased significantly on the back of its investment in data centers needed to power artificial intelligence."

Microsoft has been progressive on this issue for a long time, and was one of the first companies to account for an internal carbon price to help assess the ROI on projects (see Strategic CSR - Carbon tax). It is disappointing to see them pull back from this market, especially when technological innovation seems at a formative stage. But, they are clearly not alone -- on this or other related stories. To learn about companies dropping their 'net zero' targets, for example, see the article in the second url, below:

"Delta Air Lines Inc. quietly scrubbed a pair of key environmental targets from its sustainability web page. The Atlanta-based carrier deleted its pledge to use sustainable aviation fuel (SAF) for 10% of its jet fuel by 2030. It also rephrased its quest to achieve net-zero emissions by 2050 as an “aspiration,” rather than a 'goal.'”

As the graphic accompanying that article shows, Delta is far from where it would need to be to achieve the targets it (voluntarily) set itself -- unfortunately, they are not an outlier in the airline industry (see also Strategic CSR - Executive pay):

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  

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Microsoft Staff Tell Some Carbon Capture Companies It's Pausing Deals

By Alastair Marsh and Ishika Mookerjee

April 13, 2026

Bloomberg Green Daily

https://www.bloomberg.com/news/newsletters/2026-04-13/microsoft-staff-say-carbon-removal-deals-paused-in-program-shakeup

Delta Waters Down Net Zero Target to an 'Aspiration'

By Ben Elgin and Kyle Stock

April 14, 2026

Bloomberg Green Daily

https://origin.www.bloomberg.com/news/newsletters/2026-04-14/delta-waters-down-net-zero-target-to-an-aspiration

Strategic CSR - Executive pay

Another indication that the ESG fad has run its course (and was always a distraction) is the decoupling of executive pay from specific associated metrics:

"Two years ago, many of America’s largest companies began stripping diversity targets out of executive pay packages. Now, environmental measures—including goals tied to climate emissions—are beginning to face a similar fate."

In particular, the article in the url below highlights a more recent decision by Apple: 

"Apple Inc. quietly dropped a so-called 'ESG modifier' from its 2025 pay packages for Chief Executive Officer Tim Cook and other top executives, according to a corporate filing last month. The provision, in place since 2021, had allowed Apple’s board to adjust annual bonuses up or down by as much as 10% depending on the company’s performance on a variety of measures, including greenhouse-gas reductions and renewable energy use among suppliers."

But, Apple is not alone:

"Apple’s move follows similar decisions at dozens of companies, including Starbucks, Salesforce, Mastercard and P&G, which have recently weakened or severed ties between environmental performance and the size of their executives’ paychecks."

As a result, the more important underlying principle, the need to align compensation with the most essential performance metrics, is being lost due to the shallowness of the ESG discussion:

"The shift is beginning to show up in the numbers. The share of S&P 500 companies tying executive compensation to environmental metrics fell to 46.7% in 2025, down from a peak of 52.6% two years earlier."

Ultimately, in spite of the good intentions driving the ESG 'movement,' the rush to establish it opened the door to easy criticism, and therefore setback the conversation, because it was so ill-thought-through.

 

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  

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Apple Drops ESG Links From Top Executives' Pay Packages

By Ben Elgin and Jeff Green

February 18, 2026

Bloomberg

https://www.bloomberg.com/news/articles/2026-02-18/apple-quietly-unlinks-environmental-performance-from-pay-packages

Strategic CSR - Concrete

I have long known that concrete is a material that is successfully recycled. The article in the url below suggests there is no reason why all concrete (100%) cannot be reused in some form:

"Concrete slabs, beams, columns and other elements from dismantled buildings can be safely reused in new construction, according to a new study. The analysis could facilitate incorporating concrete—currently responsible for as much as 9% of global greenhouse gas emissions—into the circular construction industry and make the building sector as a whole more sustainable."

If we can successfully recycle existing concrete, of course, we reduce significantly the need to produce more of the stuff:

"Building codes generally require concrete to be sound for at least 50 years. When buildings are torn down (even before the 50-year mark, as is increasingly the case) it's usually assumed that concrete's useful life is over. Old concrete either gets landfilled or downcycled into rubble for road construction or aggregate for new concrete production."

Instead, the researchers suggest there is no reason why it cannot be reused for its original purpose (or close to it):

"But until now, there has been no organized method to evaluate the potential of reusing salvaged concrete. The researchers ran thousands of computer simulations to predict the future lifespan of reused concrete, based on measurements of the condition of existing buildings."

There are calculations required in terms of how far into the future recycled concrete can last, depending on what it was used for initially, and under what conditions, but there are techniques to preserve and enhance its usable life:

"For example, a concrete slab that has been exposed to harsh elements for many decades may be best reused as an interior component. Repair and refurbishment techniques—such as waterproof coatings—can also extend the lifespan of concrete."

This is not as exciting as some sustainability topics, but seems essential if we are to make meaningful progress. Concrete is dirty stuff, but essential, so making as little of it as possible would be a big step forward.

 

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  

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There's now hard evidence guaranteeing a second life for old concrete

By Sarah DeWeerdt

February 10, 2026

Anthropocene Magazine

https://www.anthropocenemagazine.org/2026/02/theres-now-hard-evidence-guaranteeing-a-second-life-for-old-concrete/

Strategic CSR - Meat

The article in the url below presents an interesting discussion around the environmental impact of our collective diet. In particular, it focuses on the impact of eating as much meat as we do:

"Food systems account for about a third of global greenhouse gas emissions, driven largely by animal farming, which is a major source of methane and a drain on land and water resources. Even if the world transitions away from fossil fuels, food alone could push temperatures past the 1.5°C threshold needed to limit warming. The onus falls disproportionately on the wealthy: The richest 30% of the world's population are responsible for more than 70% of food-related pressures."

And this says nothing of the negative health impacts to us, individually. But, it is challenging to see how this turns around any time soon, especially with this statistic about the number of cows in the world (see also Strategic CSR – Chickens):

"1.5 billion: The number of cows on the planet. Nearly 60% of agriculture's greenhouse gas emissions come from animal-based products, with cows among the biggest culprits."

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  

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Dinner without a side of global warming

By Agnieszka de Sousa

October 2, 2025

Bloomberg

https://www.bloomberg.com/news/articles/2025-10-02/eat-less-meat-is-still-the-message-from-flagship-diet-report

 

Strategic CSR - COP 21

In the midst of the largely pessimistic review of progress on climate change since COP 21 in Paris in 2015, the article in the url below contains a ray of sunshine:

"It took almost 70 years from the invention of the solar cell, in 1954, for the world to install its first terawatt of solar power, in 2022. The second one came two years later. The third? Perhaps later this year. In 2024, renewables provided more than 40 percent of the world's electricity, and twice as much money was invested in them than in fossil fuels — even though renewables offer, generally speaking, less return on investment. Ninety-three percent of new power worldwide came from clean sources, meaning that for every new unit of dirty capacity brought online in 2024, there were 24 units of the good, clean stuff. This is not yet enough to push global emissions downward. But in a battle between old energy and new, it represents an obliterating margin. As soon as next year, it is estimated, renewables will be the world's largest source of electricity."

The article suggests that, in spite of the current political climate that discourages some of the scientific rhetoric around the threats posed by climate change, progress on the transition to carbon free energy sources continues:

"… global leaders may be talking less about the risks of warming and the necessity of limiting it, these days, but on the ground, decarbonization is nevertheless racing ahead."

Nevertheless, the article also concludes something that seemed obvious even a decade ago:

"In certain ways, the story is one that moderates and skeptics long predicted: that decarbonization could not be reliably imposed from above on moralistic terms and would have to be powered instead by market forces, private investment and the informed consensus of a price-conscious public."

Or, in other words:

"Polls show that voters don't actually prioritize decarbonization and, crucially, aren't willing to pay much to bring it about."

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  

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It Isn't Just the U.S. The Whole World Has Soured on Climate Politics

By David Wallace-Wells

September 16, 2025

The New York Times

https://www.nytimes.com/2025/09/16/magazine/climate-politics-us-world-paris-agreement.html

 

Strategic CSR - ICEs

Here is an interesting quote from the article in the url below about internal combustion engines (ICEs):

"About three-quarters of the energy produced by a typical combustion engine is lost through heat and released through a car's exhaust system. But what if some of that heat could be captured and turned into electricity?"

I had no idea ICEs were so inefficient, which must mean three-quarters of the fuel that we put into our cars is essentially wasted. Capturing some of that excess, and reducing the waste, seems like a worthwhile project. Specifically:

"Converting even a fraction of the waste heat produced by such vehicles into electricity could reduce fuel consumption and battery usage … leading to lower carbon-dioxide emissions."

Fortunately, some smart people are looking into that possibility:

"In a recent study, researchers created a prototype of a device, called a thermoelectric generator. … When inserted into an exhaust pipe, the device can turn waste heat into a continuous source of electricity for vehicles such as cars, helicopters and unmanned aerial vehicles, making them more efficient, the researchers say. … The study was partly funded by the U.S. Army with unmanned aerial vehicles in mind, but the researchers believe the device has the potential to be used much more broadly. That's because the thermoelectric generator can be installed into tailpipes of different vehicles without changing how they operate."

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  

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The Heat Coming Out of Your Car's Tailpipe? Some Can Be Turned Into Electricity

By Lisa Ward

April 21, 2025

The Wall Street Journal, Journal Report: Alternative Energy

Late Edition – Final

R2

https://www.wsj.com/business/energy-oil/car-tailpipe-electricity-eaab01f2

 

Strategic CSR - Earth Day

Ahead of Earth Day on Tuesday, some thoughts on recent developments around ESG.

When I criticize various sustainability policies or proposals, the response I often get is along the lines of 'well, at least we are trying.' To which I reply along the lines of 'well, good intentions do not substitute for good outcomes.' My general thought is that, kidding ourselves we are making progress is no help to anyone – if anything, it lulls everyone into a false sense of security through the illusion of progress, and that is a problem because it ensures even less progress than if we were sufficiently self-aware to know we were not really moving the needle.

The evolution of the resistance to ESG in the U.S., as reported in the article in the url below, demonstrates the danger of relying on good intentions. ESG, from the beginning, was clearly based on false assumptions and inconsistent logic, topped off with the desire to start making money as soon as possible. This could have continued for a while, except that the fragile intellectual foundation (characterized by incomplete definitions and inconsistent measurement) allowed ideological opponents to pick it apart. If ESG had rested on a sounder foundation, the ridiculous ideological attacks against it would have fallen flat. But, because ESG is inherently flawed, it was easy for those opposed to cherry-pick the flaws that best matched their arguments, to make their pushback sound more legitimate, even in the face of economic gain:

"Climate investors have warned the political right is winning a war against ESG investing. A recent poll shows American support for renewable energy and electric vehicles is fading. And yet, President Joe Biden's signature climate law is in many ways benefiting conservative red states the most."

I have said this many times, but I'll repeat for good measure – in my opinion, as a society, we are not serious about tackling climate change. In fact, I would go as far as to say that we have not even begun a conversation about planning how we might be serious at some distant point – as noted by Tad DeLay, quoted in the article in the second url below:

"Just by driving to get groceries you emit carbon dioxide … a fifth of [which] … will still be in the air in 500,000 years, killing species that haven't yet evolved."

You would think we would take all of this a little bit more seriously. All you have to do is realize that during the COVID lockdown, when none of us were going anywhere and the global economy had virtually shuttered, global carbon emissions dropped a mere 6% (see Strategic CSR – COVID-19). 6%! And we think we can get to net zero by 2050. It would be laughable if the implications of our self-delusion were not so serious.

Tackling climate change and creating the conditions for a more sustainable economic system will always require plenty of unconditional cheerleaders, not to mention brilliant minds who will innovate and provide encouragement along the way. It will also require those who can think critically about what we are doing, and work to prevent us from lulling into the false sense of security that is just as big a barrier to progress as sticking our collective heads in the sand.

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 

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Climate Investors Warn the Right Is Winning the Way on ESG

By Alastair Marsh

February 28, 2024

Bloomberg

https://www.bloomberg.com/news/articles/2024-02-28/climate-investors-warn-the-right-is-winning-the-war-on-esg

'What if there just is no solution?' How we are all in denial about the climate crisis

By Maya Goodfellow

June 20, 2024

The Guardian

https://www.theguardian.com/environment/article/2024/jun/20/what-if-there-just-is-no-solution-how-we-are-all-in-denial-about-the-climate-crisis

 

Strategic CSR - Energy

As the article in the url below starts off by saying, "Something strange is happening with utilities." Specifically:

"For decades, electricity usage in the US has been mostly flat. Even with more people starting to use more power for more things, much of that has been offset as buildings, factories and appliances become more efficient."

But suddenly that is no longer the case and, apparently, the utilities have been caught off-guard:

"Big tech companies need lots of electricity, for data centers and especially for artificial intelligence. Homes are using more electricity for heating and cooling. Factories need more electricity to shift away from fossil fuels."

As a result, ironically:

"… when faced with this sudden increase of load on the power grid, utilities are going to rely heavily on natural gas, and even coal."

This is not a minor or temporary shift, but something more fundamental:

"[Research predicts] demand to for electricity to climb almost 16% over the next five years, more than triple his estimate from a year ago. Utilities are expecting customers to need as much as 128 gigawatts of new capacity in 2029."

And, as is often the case when societies are asked to choose between economic growth and sustainability, it is the switch away from fossil fuels that is the primary casualty:

"That's really going to disrupt the green transition. Power providers that have made pledges to cut back or eliminate carbon emissions are now starting to reverse course. Duke Energy Corp. is extending the life of its largest coal-fired power plant, abandoning its plan to exit coal by 2035. FirstEnergy also will operate a pair of coal plants, stepping back from an earlier pledge to stop using the fuel by 2030. And energy companies in the US are planning new gas plants at the fastest pace in years."

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/

Coal-Black Swans Threaten the Green Transition

By Will Wade

December 17, 2024

Bloomberg

https://www.bloomberg.com/news/newsletters/2024-12-17/coal-black-swans-threaten-the-green-transition

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

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/

Net Zero Needs More Metals, But Less Extraction From The Earth

By Akshat Rathi

September 10, 2024

Bloomberg

https://www.bloomberg.com/news/articles/2024-09-10/net-zero-needs-more-metals-but-less-extraction-from-the-earth

 

Strategic CSR - Coal

A quick update, in the article in the url below, on where the world is in terms of its coal consumption – spoiler alert, we are not in good shape:

"We're burning more coal than ever. … Coal is both the dirtiest fossil fuel and the biggest source of electricity, accounting for 35% of the world's generation [in 2023]."

Unfortunately (or fortunately, depending on how you look at it), this sorry state represents progress:

"From 2006 through 2014, [worldwide coal consumption] was 40%-plus."

And, it does not look like we can keep the positive trajectory going:

"But even as scientists sound the alarm on dangerous climate tipping points, coal consumption is still growing. It's expected to hit a record in 2024, and is on track to be higher in 2050 than it was in 2000."

As an indication of how far from where we need to be we currently are:

"To reach net zero by 2050, global coal use would need to fall by more than 90%, and what's left would need to be handled by plants capable of capturing and storing emissions."

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/

Why We're Burning More Climate-Warning Coal Than Ever

By Will Wade

August 12, 2024

Bloomberg Law

https://news.bloomberglaw.com/environment-and-energy/why-were-burning-more-climate-warming-coal-than-ever-quicktake

 

Strategic CSR - Coal

Here is a tale of two trajectories for coal that are heading in opposite directions (at least, in the short term). First, the article in the first url below reports that Duke Energy has announced its intention to change its plans for its largest coal-fired power plant. The company had originally planned to close all its power plants that use "the dirty fuel" by 2035, but that has now changed:

"The utility said it plans to operate its massive Gibson Station in Indiana through 2038, according to a presentation about its resource plan for that state posted on its website Thursday. The company previously said it would shutter the plant by 2035, in line with its broader plan to be entirely coal-free by that year."

What is interesting is that the article (pre-DeepSeek) blames A.I. for unpredicted electricity consumption, which is causing utilities to alter their plans of how they will be able to meet that growing demand:

"Some US utilities are struggling to meet ambitious climate goals set before electricity forecasts began spiking amid tech giants' move to build new data centers for artificial intelligence."

Similarly:

"FirstEnergy Corp. announced earlier this year it was abandoning its 2030 target for slashing greenhouse gas emissions because it couldn't replace some coal plants in time."

In contrast, the article in the second url below reports that the UK closed its last coal-fired power plant, in early October last year, in what is being framed as a risky experiment to meet its previously announced GHG emissions goal:

"By closing the 2,000 megawatt (MW) coal plant in Nottinghamshire, Britain has become the first G7 country to end coal-fired power production and make significant progress against energy transition and pollution reduction targets."

The key is that the UK is not self-sufficient in terms of LNG, which means it will need to rely on imports, paying the market rate that is heavily influenced by geopolitics:

"UK gas consumption has exceeded domestic gas production for the past 20 years, according to the 2024 Energy Institute Statistical Review of World Energy. … Between 2018 and 2023, UK LNG imports jumped by 171% from 7.2 billion cubic meters (BCM) to 19.4 BCM, according to the Energy Institute."

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 is the energy transition going?

By Brian Kahn

October 4, 2024

Bloomberg Green

https://www.bloomberg.com/news/newsletters/2024-10-04/ev-charging-is-getting-an-airport-lounge-like-upgrade-green-daily

UK's last coal plant shutdown bodes well for US LNG export

By Gavin Maguire

October 1, 2024

Reuters

https://www.reuters.com/markets/commodities/uks-last-coal-plant-shutdown-bodes-well-us-lng-exports-maguire-2024-10-01/

 

Strategic CSR - Aviation

I have been looking into the aviation industry, recently (see here). Thinking about how sustainability works in this space has been part of that inquiry. Along these lines, I found the article in the url below, which suggests we are nowhere near developing a sustainable aviation fuel (SAF), and that any headline you might have seen suggesting the opposite is misleading, at best:

"IPS report says replacement fuels well off track to replace kerosene within timeframe needed to avert climate disaster."

Even worse:

"Hopes that replacement fuels for airplanes will slash carbon pollution are misguided and support for these alternatives could even worsen the climate crisis, a new report has warned."

Specifically:

"There is currently 'no realistic or scalable alternative' to standard kerosene-based jet fuels, and touted 'sustainable aviation fuels' are well off track to replace them in a timeframe needed to avert dangerous climate change, despite public subsidies, the report by the Institute for Policy Studies, a progressive thinktank, found."

As with many good ideas in the sustainability space, the idea in theory is possible; in practice, scalability is the challenge:

"Chuck Collins, co-author of the report, said: 'To bring these fuels to the scale needed would require massive subsidies, the trade-offs would be unacceptable and would take resources aware from more urgent decarbonization priorities.'"

What are some of those potential tradeoffs?

"Burning sustainable aviation fuels still emits some carbon dioxide, while the land use changes needed to produce the fuels can also lead to increased pollution. Ethanol biofuel, made from corn, is used in these fuels, and meeting the Biden administration's production goal, the report found, would require 114m acres of corn in the US, about a 20% increase in current land area given over to the crop. In the UK, meanwhile, 50% of all agricultural land will have to be given up to sustain current flight passenger levels if jet fuel was entirely replaced."

The conclusion, due to the unique challenges of getting heavy airplanes off the ground:

"Phil Ansell, director of the Center for Sustainable Aviation at the University of Illinois, said the aviation industry had been faced with a much steeper challenge than other sectors to decarbonize. 'There's an under appreciation of how big the energy problem is for aviation. We are still many years away from zero pollution flights,' he said. … 'We are now trying to find solutions, but we are working at this problem and realizing it's a lot harder than we thought. We are late to the game. We are in the dark ages in terms of sustainability, compared to other sectors.'"

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/

'Magical thinking': hopes for sustainable jet fuel not realistic, report finds

By Oliver Milman

May 14, 2024

The Guardian

https://www.theguardian.com/environment/article/2024/may/14/sustainable-jet-fuel-report

 

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)

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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