Cheat Sheet Ethical Corp June 2013

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Summary of latest facts, figures and stats in the area of business sustainability, CSR and corporate responsibility

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Cheat Sheet Ethical Corp June 2013

  1. 1. Organisation snapshotsEco-building setto boomThe market for green constructionmaterials is set to more than doubleby the end of the decade, increasingfrom $116bn at present to $254bn by2020. A report by analyst firmNavigant Research finds the marketfor environmentally friendly buildingproducts is remarkably recession-proof. Growth in the sector willdepend on a combination of pro-green policies and regulations, theexpansion of voluntary certificationprogrammes, cost reductions forgreen materias and consumerdemand. The upbeat findings echoresearch by building firm McGraw-Hill Construction, which reckonsgreen building will double from 28%of its market today to 60% by 2015.www.navigantresearch.comSustainability leadersNational governments are the worst atdemonstrating sustainability leadership,with 80% of opinion leaders judginggovernments’ performance as poor (iewith a score of 1 or 2, on a scale of 1to 5 where 5 is “excellent”). Theannual Sustainability Leaders survey,by GlobeScan and SustainAbility rankssocial entrepreneurs in first place (with57% giving the sector a score of 4 or 5).Scientific leaders and NGO leadersfollowed, with scores of 4 or 5 taking44% and 42% of the votes, respectively).The corporate sector’s leadershipCorporate responsibility cheat sheetBy Oliver BalchAll the sustainable business facts and figures you needCheat sheet26 Ethical Corporation • June 2013Global Compact’s global networkThe UN Global Compact now counts small andmedium-sized enterprises as its most active group ofparticipants. SMEs now account for 3,829 of the 10,706participating organisations, 36% of the total, accordingto the annual report of the benchmark United Nationsinitiative for corporate responsibility. Larger companiesaccount for 30%, with the remaining 34% comprisingacademic institutions, NGOs and government entities.Of the 3,262 large companies involved in the GlobalCompact, around half are from Europe (1,597participants), one-quarter from the Americas (815participants), one-fifth from Asia/Oceania (668 partici-pants), and a mere 6% from Africa and the Middle East(182 participants). Spain has the largest number ofparticipants with 1,377, followed by France with 863 andthe Nordic Network with 541. The initiative boasts 101Local (ie national) Networks in total, with Burma as themost notable addition in 2012.Construction: reluctant retrofittersEuropean companies are “relatively active” in retrofittingbuildings compared with their counterparts in otherregions. A new report by The Economist IntelligenceUnit, in partnership with the World Business Councilfor Sustainable Development, finds that more thantwo-fifths (43%) of building sector executives in the EUfocus their emissions-cutting efforts on retrofits – morethan in the US (37%) and in China (23%), for example.The sector’s efforts still need to double, however, if it isto meet the EU goal of improving energy efficiency by20% by 2020. Energy-efficient retrofits, or “deep retro-fits” as they are known, currently account for a meagre1% of existing building stock.www.gbpn.orgAnswers in urbanisationUrbanisation is helping reduce poverty and improveprogress towards the Millennium DevelopmentGoals. In south Asia, for example, 60% of urbandwellers have access to sanitation facilities, comparedwith 28% in rural areas. Meanwhile, access to safewater in urban areas in developing countries wasalmost complete by 2010, with 96% coverage,compared with 81% of the rural population havingaccess. As for urban infant mortality rates, these rangefrom 8-9 percentage points lower than the rural ratesin Latin America and central Asia.The findings, which are based on the WorldBank’s annual Global Monitoring Report, are notuniversally positive. Slums in urban centres aregrowing, for instance. The problem is particularlyacute in Asia, which is home to three-fifths of the828 million slum dwellers. Africa and LatinAmerica house 25.5% and 13.4%, respectively. Citiesand towns in the developing world are expected toattract 96% of the 1.4 billion people due to be addedthe global population by 2030. According to the WorldBank, 970 million people will still be living on $1.25or less per day by 2015. Around three-quarters of theworld’s poor (76%) currently live in rural areas.www.worldbank.org/gmr2013Africa on the up, but notuniversallySub-Saharan Africa is growing quickly, but benefitsare unequally distributed, according to a new reportby UNDP. The region’s GDP grew by an average of5.4% in 2013, making it one of the fastest-growingregions in the world. Over the past decade, six of theworld’s 10 fastest growing countries have beenAfrican. Consumer spending in the continent isconsequently expected to grow to $1.4tn by 2020,$520bn more than in 2008. That said, sub-SaharanAfrica continues to struggle. Almost half of its 800million population lives on incomes of less than $1.25a day, while about 239 million people in the regionare currently malnourished. Life expectancy acrosssub-Saharan Africa is 52.5 years, compared with69.2 worldwide. Africa as a whole also faces starkchallenges. About 38% of the continent’s adultpopulation still lacks basic literacy and numeracyskills, for instance. Low incomes also remain thenorm, with 97% of all Africans earning less than$8 a day.http://web.undp.org/africaThe green constructionmaterials market is setto double by 2020 to$254bnSMEs nowaccountfor36%of UN Global Compactparticipants,its mostactivegroupECM June 2013_Layout 1 28/05/2013 17:02 Page 26
  2. 2. scores were as follows: 5 (excellent),2%; 4, 20%; 3, 40%, 2, 30%; 1 (poor),7%; don’t know, 1%. The figures showa small regional variation with respectto the private sector. Sustainabilityexperts in Asia (32 votes in total) and inAfrica and the Middle East (also 32) arefractionally more likely to judge corpo-rate leaders as making an “excellent”contribution to sustainability than theirpeers in Europe (20), North America andLatin America (22), and Oceania (9).At a company level, Unilevercame top in the survey for the thirdyear in a row. The Anglo-Dutchconsumer goods company wasmentioned by one in four of the 1,170qualified sustainability experts thatparticipated in the survey, up 8% onlast year. The other most mentionedcompanies include Patagonia (14%),Interface (11%) and Wal-Mart (8%).Brazil’s Natura and India’s Tata werethe only companies that garneredmore than 1% of mentions fromexperts in Europe and North America.www.globescan.comLimited scopeof GHG disclosureNearly two-thirds (63%) of theworld’s largest companies fail toprovide full and accurate informationabout their greenhouse gasemissions. Research by theEnvironmental Investment Organi-sation (EIO) also finds that eight inten (79%) of large global firms declineto verify such data independently.EIO’s Environmental TrackingCarbon Rankings puts BASF in topspot for GHG disclosure. The Germanchemical company is credited forpublishing all 15 indirect (so-calledScope 3) emissions. Its Scope 1, 2 and3 emissions intensity measures 933tonnes of carbon dioxide equivalentfor every $1m of turnover. The foot-print of the worst performer –US-based First Energy – is more than10 times the size, at an estimated10,342 tCO2e/$m turnover.The study, which is based on theET Global 800 portfolio of companies,ranks Italy and Spain in joint first foremissions transparency. Two-thirds(63%) of companies in both countriesdisclose complete data, with morethan half (54%) verifying their emis-sions data externally as well.www.eio.org.ukUS top for greenincentivesThe US tops a new ranking by KPMGon fiscal incentives for the greeneconomy. The KPMG Green TaxIndex singles out the world’s largesteconomy for the federal-level taxstimulus it offers investments inenergy efficiency, renewable energyand green buildings. However, whengreen tax penalties alone are consid-ered, the US drops into 14th place –behind the likes of China and SouthAfrica, among others. Second placeoverall in the 20-country study goesto Japan, which, in contrast to theUS, scores higher on green tax penal-ties than it does on incentives. Japanalso leads the ranking for taxmeasures to promote the use andmanufacture of green vehicles. TheUK is in third place, although it topsthe table for progressive taxmeasures relating to carbon andclimate change. While KPMG insistslessons can be gleaned from the fiscalframeworks of all the countriesstudied, it relegates Brazil,Argentina, Mexico and Russia to thebottom of the table.www.kpmg.comAssessing sub-suppliersAlmost one in three small andmedium-sized businesses with aturnover of less than £25m have zeroinformation on their suppliers’suppliers. In contrast, companies witha turnover of over £1bn are more onthe ball, with around eight out of 10having some data on their tier 2suppliers. The findings emerge froma poll of 131 directors, procurementmanagers and buyers by logisticsconsultancy firm Achilles.400ppm carbonin the atmosphereThe concentration of carbon dioxidein the atmosphere reached thesymbolically important 400 parts permillion in May. The findings wererecorded by the US government’sEarth Systems Research centre inHawaii. CO2 atmospheric levelsregistered around 280ppm at the startof the industrial revolution, and haveincreased by 84ppm over the past 55years (since the Hawaii centre wasfirst established).www.esrl.noaa.gov ICheat sheet 27Ethical Corporation • June 2013Company insightsAdidas ratings riseAdidas saw a “substantial” increase in its supplier factories’ sustainabilityratings during 2012, according to its recent Sustainability Progress Report.The number of strategic suppliers with a 3C-rating (good) or better on thecompany’s own internal ranking system now stands at 86%. More than athird, meanwhile, have a 4C-rating or better, denoting the highest level ofperformance. Among the other achievements highlighted by the sportsclothing brand are the 26,000 hours that its employees spent volunteeringon community projects in 22 countries.www.adidas-group.comMerck’s donations jump 49%Pharmaceutical firm Merck increased its social investment budget by 49%in 2012. Its expenditure on drug donations and social programmesamounted to €11.8m, an increase of €3.9m on the previous year. One ofthe significant components of its drug donation programme was the freeprovision of more than 27m Praziquantel tablets to combat schistosomiasis(a prevalent type of worm disease) in Africa. Merck was placed eighth inthe sector-based Access to Medicine Index 2012 (having previously been17th out of 20 companies in 2010).http://merck.online-report.eu79%of largeglobal firms declinetoverifygreenhousegasemissions data2nd placegoes to Japan in the KPMGGreenTaxIndexOne-thirdof small sized SMEs haveno information on theirsuppliers’ suppliersCO2 levels have increased by84ppmoverthe last55 yearsECM June 2013_Layout 1 28/05/2013 17:02 Page 27

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