The following are extract pages taken from the February 2016 Ethical Corporation magazine. There's analysis on:
** US Presidential elections and the lack of a sustainability agenda
** Briefing on the food industry and the challenges of feeding the global population
** Our roundup of the latest brand, ngo, academic news and announcements
** Feature on sustainability within the automotive sector
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CSR magazine analysis - February 2016
1. February 2016 www.ethicalcorp.com
US elections
CSR lite
Automotives
Ethics benchmarking
Higg index
Apparel stripped down
Future food
How to grow sustainably
2. Estelle Brachlianoff
Senior Executive
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CEO
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Company Group
Chairman
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CEO
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3. 3
Ethical Corporation | August 2014???Contents
35 NGOWatch
Global inequality
37 Cheat sheet
All you need to know
Strategy and management
41 Automotives
CSR benchmarking
49 US apparel
Ethics indexed
Review
56 Report: Ikea
58 Report: Tetra Pak
60 Academic news
63 New books
65 People on the move
67 On the web
5 From the editor
EthicsWatch
6 EU corporate tax
Closing loopholes
8 UK online retail
Age concern
10 US elections
CSR trumped
12 PolicyWatch
EU reporting rules
Food briefing
14 Man v. food
Sustainable consumption
24 Future farming
Harnessing technology
33 BrandWatch
GMO labelling
14Future growth
Sustainable food
Ethical Corporation | February 2016
49Higg index
Ironing out ethics
4. 10
Ethical Corporation | August 2014??? Ethical Corporation | February 2016EthicsWatch: US elections
US primaries
Nobody’s talking sustainability
By April Streeter
Many eyes internationally are on Donald Trump and the US election process. But will
the eventual outcome have any effect on sustainability efforts?
For outsiders, the presidential candidate caucuses held in February in Iowa and New Hamp-
shire are a strange, incomprehensible yet fascinating preview of who might be the next US
president. This year’s results, in which
candidates on the edges of the US political
spectrum are receiving a sizeable amount
of support, seem stranger and more incom-
prehensible than usual.
On the Republican right, two strident,
divisive candidates (Ted Cruz and Donald
Trump) are battling for supremacy while a
third, more establishment choice (Marco
Rubio) tries hard to muscle in. The situation
on the Democratic left is similar. The
favourite, Hilary Clinton, has been dogged by “democratic socialist” Bernie Sanders, who
managed to get as much of the vote as Clinton in Iowa and won in New Hampshire.
How would any of these candidates help or hinder sustainability efforts in the US? Trump is
considered a business savant and has a laissez-faire approach to the environment. Few people
in the US seem to know or care about the UK backlash against him or know of his opposition
to a wind farm that spoilt the view to a golf course he built.
In the US, Trump has publicly come out against the US Environmental Protection Agency,
calling it a “disgrace”; said he doesn’t believe global warming and climate change are real; and
proposed a tax plan that would probably exacerbate social inequality in the country, by giving
top earning individuals a tax break from 39.6% to 25% and reducing the business tax to 15%.
Conversely, Trump’s plan is supposed to give the middle class relief by lowering taxes and
increasing economic output, which he hopes will stimulate job creation as well as increase wages.
(This is at the expense of government revenues, expected to fall significantly if he takes office.)
Cruz’s tax plan is even more radical – a 10% flat tax and, instead of a corporate income tax,
a 10% value added tax (VAT) that is supposed to greatly increase business incentives to invest
but is very regressive, shifting the tax burden to the middle and lower income earners and
especially to seniors living on US social security. Rubio’s tax plan includes tax cuts for busi-
ness and high-earning individuals, and has been estimated to offer a boost to GDP of 15% and
significantly cut government income and social programmes.
Trump has a laissez-faire approach to the environment
ANDYKATZ
5. 11
Ethical Corporation | August 2014??? Ethical Corporation | February 2016
On the democratic side, Sanders would raise taxes if he became president, and the Tax
Foundation, a non-partisan research centre based in Washington, DC, expects that Sanders’
plan would raise tax revenues by $9.8tn over a decade, yet lower after-income taxes for all
taxpayers and for the wealthy significantly. Since the cost of investment capital would rise, the
Tax Foundation said that the US GDP would fall under Sanders.
With Clinton as president, taxes would also increase through a number of different (and
complicated) mechanisms, including a higher tax on the very wealthy. Clinton’s tax plan would
collect more revenues to be spent on new social programmes, and might reduce the US GDP
by about 1% over the long term, according to the Tax Foundation.
Few US voters (just 6%) put climate change as their top priority in deciding on a presidential
candidate, so the topic has received little attention from Republican contenders – both Cruz
and Trump deny it – and just a little more on the
Democratic side. Clinton has a plan to install
500m solar panels by 2020 (a 70% increase from
today’s installations) and expand renewables’
share of the energy mix to 33% by 2027. For his
part, Sanders has gained endorsements from
Friends of the Earth and Bill McKibben’s 350.
org group, and has endorsed a carbon tax; he is
also the most vocal candidate on the threats of
climate change.
It’s not easy to make sense of how all these
positions would affect companies’ sustainability
actions, yet it is evident that the Republican
candidates are business-as-usual, and economic vibrancy is still one of the pegs that holds up
sustainability’s three-legged stool. On the other hand, it seems the Republicans would drive
this change at the expense of both environmental and social progress, which would probably
cause the sustainability stool to topple.
Companies that are currently working on sustainability actions might enjoy their unfettered
business gains yet still continue their programmes, like Castagra Products, a maker of plant-
based coatings in Reno, Nevada.
“If Donald Trump became president we would pursue our CSR and sustainability goals as
planned,” says Tats Nakagawa, Castagra’s marketing and strategy vice-president. “Sustaina-
bility is the core of our business and outside events do not affect our mission in this area.”
And those companies that have yet to start acting in the sustainability space? If Trump or
Cruz became president sustainability laggards would have little incentive to start. If Clinton or
Sanders win the presidency, regulations around climate change would press many to begin
to measure and mitigate at least one environmental aspect of their operations, and by paying
higher taxes these companies would contribute to social equity without (hardly) trying.
Clinton plans to spend more on social programmes
EDSTOCK
EthicsWatch: US elections
6. 14
Ethical Corporation | August 2014??? Ethical Corporation | February 2016
Global markets
Forever food
By Ellen R Delisio
Putting food in the world’s mouths has always been difficult, and doing
it sustainably is only going to get harder
The need to produce more food with minimal environmental impact has
never been more pressing or more challenging. By 2050, the world’s
population is expected to grow to 9.1 billion, a 34% increase over the current
figure. Crop yields are increasing at about 1.8% a year for grain farmers
globally, but climate change is holding back that increase by about 2.5% each
decade, according to a December 2015 report from the US Department of
Agriculture (USDA).
The task of feeding those additional people is complicated by changing
dietary patterns, water scarcity, declining soil quality, energy price fluctuation
and the unpredictability of climate change. “We need an intensification of
sustainability,” says Daniel Rosario, European Commission spokesperson
for agriculture and rural development. “There is a danger that some farm
businesses expand too rapidly and unsustainably.”
Corporations are also eyeing their supply chains in an effort to keep less
sustainable foods out of their products and off store shelves. “More companies
are setting goals and that is going to continue to grow,” says Suzy Friedman,
agriculture sustainability director for the Environmental Defense Fund
(EDF). “They are making goals as to how to reduce their footprint and make
themselves more resilient to climate change. Companies that are in the food
By 2050
the world’s
population is
expected to
grow to 9.1
billion
PRUDKOV
Food briefing
7. 15
Ethical Corporation | August 2014??? Ethical Corporation | February 2016
In 2011 Coke
bought its first
batch of sugar
certified by
Bonsucro
supply chain need farmer-facing partners able to provide sustainability advice
and programming across their sourcing areas, so they are looking for those
advisers farmers trust. We need agricultural retailers to develop programmes
across the country that they can roll out to the food companies.”
The Coca-Cola Company is applying corporate social responsibility (CSR)
practices worldwide through its Water-Energy-Food strategy, designed to
produce its key inputs in a more sustainable way. “The three are closely linked,
so we do a risk assessment, using water as a lens,” says Greg Koch, Coke’s
senior director, global water stewardship. “Our ultimate aim is close the gap in
water, food and energy security. By 2020, our goal is to sustainably source our
top 13 agricultural ingredients
as well as pulp and paper.”
The company’s CSR approach
has 15 guiding principles for
sustainable agriculture.
Workplace rights has been an
established programme – “the
human side has been in place
for 10 years,” Koch notes – and
now the company has expanded
into more environmental issues
including resource management,
crop protection, post-harvest
handling, improved food safety
and preparing for climate change.
For each crop and each growing
region there are other criteria,
including external validation.
A Supplier Engagement
Programme provides guidance to
Coke’s suppliers on ways to achieve Sustainable Agriculture Guiding Principles
(SAGP) compliance. This programme applies to all areas and includes Coke’s
key product commodities and ingredients. In 2011, Coke bought its first batch
of sugar certified by Bonsucro, a global non-profit, multi-stakeholder
organisation that certifies sustainably grown sugarcane, and by July 2015, the
company was working with 40 sugarcane mills in Brazil and Australia that are
Bonsucro-certified. Through Project Unnati, the company is working with Jain
Irrigation to train farmers in India to increase their yields while growing crops
more sustainably.
Coke’s water replenishment programme, a key component of its CSR
policies,hasresultedin94%ofallwaterusedinfinisheddrinksbeingreplenished
PIXELFUSION3DWater, energy and food are closely linked
Food briefing
8. 33
DUCKYCARDS
Campbell Soup to place GMO labels on
products
Following the announcement that it will be elim-
inating artificial ingredients from its products,
Campbell Soup says it will now begin placing
genetically modified organisms (GMO) labels on
product packaging.
While in favour of mandatory labelling, the
American canned soup household brand says it
will continue to oppose what it calls a “patchwork
of state-by-state labelling laws” – such as the ones
proposed by individual states including Vermont,
Maine and Connecticut – which Campbell believes
to be incomplete, impractical and confusing for
customers.
Campbell will focus its efforts on creating a
single mandatory labelling standard in the form of
federal legislation that would require all foods and
drinks regulated by the Food and Drug Adminis-
tration and the US Department of Agriculture to be
clearly labelled for GMOs.
Lobbying for labels
Saving with purpose
PICK-UPPATH
Ethical Corporation | August 2014???
Sustainability saves Hilton $500m
Since the launch of its corporate respon-
sibility strategy four years ago, Hilton
Worldwide says global partnerships and
sustainability programmes have helped it
save more than $500m.
The hotel group’s sustainability
strategy, “Travel with Purpose”, focuses
on creating employment opportuni-
ties and community support, as well as
diminishing the use of natural resources
through which most of Hilton’s savings
were generated.
Since 2011, the hotel chain has
invested in proprietary technology to
track, analyse and improve natural
resource management across its port-
folio. As a result, it has reduced energy
use by 14.5%, carbon output by 21%,
waste by 27.6% and water use by 14%,
yielding an estimated $550m of cumula-
tive savings.
Efforts include upgrading energy
efficiency at several UK Hilton hotels
via the installation of green controls for
doors, windows and heating to ensure
intelligent use of energy depending on
whether rooms are vacant or let.
BrandWatch
BrandWatch
By Nadine Hawa
GMO labelling, Hilton resource savings, data centres heat water and Congo child labour
accusations
Ethical Corporation | February 2016
9. Ethical Corporation | August 2014???
34
BrandWatch Ethical Corporation | February 2016
SCANRAIL
Minerals dispute
FAZON1
Apple, Microsoft and Samsung
accused of child labour
Apple, Microsoft, Samsung, Sony and
Vodafone are among 16 multinationals
being accused of child labour linked to
cobalt mining in the Democratic Republic
of the Congo (DRC).
In a joint report – This is what we die
for: Human rights abuses in the Demo-
cratic Republic of the Congo power the
global trade in cobalt – Amnesty Inter-
national and African Resources Watch
(Afrewatch) trace cobalt used in lithium
batteries sold to the companies to mines
where artisanal miners, including thou-
sands of children as young as seven,
mine cobalt in life-threatening conditions.
Of the 16 companies reported as
using processed cobalt from Huayou
Cobalt, one admitted the connection,
four were unable to specify the source
of their cobalt, five denied sourcing the
mineral from the firm despite being listed
as customers in company documents,
and two said that they did not source
cobalt from DRC.
Russian internet giant using computers to
heat water
Russian internet giant Yandex – which operates
the largest search engine in Russia – is harnessing
the heat generated from one of its data centres in
southern Finland to warm water.
The heat recovery plant uses hot air generated
by the servers to heat water from the residential
water supply system of the town of Mäntsälä.
“We wanted to make full use of the excess ener-
gies we produce in order to benefit the community,”
says Ari Kurvi, data centre manager. The company
says the scheme is set to halve local gas consump-
tion of utility providers, reducing CO2
emissions
by 40%.
Yandex also argues the method is significantly
cheaper than building and operating a typical gas
boiler, and predicts it will cut residents’ heating
costs by 5% in the coming year as well as electricity
costs at the data centre by as much as a third.
Data recovery
10. 37
Ethical Corporation | August 2014???Cheat sheet Ethical Corporation | February 2016
Corporate responsibility cheat sheet
UK ethical sales worth £38bn
Sales of ethical goods in the UK increased by 8%
in 2014 thanks in large part to strong sales of solar
panels (£716m), electric vehicles and other low-emis-
sion (tax band A) cars (£7bn) and bicycles (£956m).
The overall value of ethical sales amounts to £38bn,
up from £35bn the previous year, a report by Ethical
Consumer and Triodos Bank finds. The definition of
“ethical” is relatively broad, including charity shops,
organic food and energy efficient lightbulbs. Some
of the leading product areas include sustainable fish
(up 12%), free range poultry sales (up 8%) and free
range egg sales (up 2%). A stricter definition based
on Fairtrade sales shows a different picture, with
revenues dropping 4% to £1.6bn compared with the
previous year – the first time Fairtrade sales have
dropped since their launch two decades ago.
Ethical Consumer markets report 2015
Millennials: fair-minded, but flighty
More than half of young people in developed and
developing economies would rule out working
for an employer because the firm’s values do not
match their own. And according to a wide-ranging
study by professional services firm Deloitte, 44% of
young people have actually turned down a job offer
because of a values misfit. The personal values of
so-called millennials also impact what assignments
they are willing to take on once working for a busi-
ness, with almost half turning down a task that they
felt uncomfortable with. An overwhelming 87% also
believe that metrics for business success should
include non-financial measures alongside financial
performance. It’s little wonder therefore that
a substantial minority is on the look-out for “better
fit” employers. More than four in 10 millennials
would like to leave their current employers in the
next two years. That figure increases to two-thirds
when the timeframe is extended to five years.
The Deloitte annual survey, now in its fifth year, is
based on responses from nearly 7,700 millennials
from 29 countries.
Deloitte, annual millennial survey 2016
By Oliver Balch
We read all the reports so you don’t have to
44% of young people
turned down a job because of a values misfit
Fairtrade sales revenues
dropped 4% to £1.6bn
11. 38
Ethical Corporation | August 2014???Cheat sheet Ethical Corporation | February 2016
Storming performance for Scotland’s
wind sector
Wind generation in Scotland increased by 16%
during 2015, exceeding domestic demand in six
of the year’s 12 months, the environment group
WWF Scotland calculates. For the year as a whole,
wind facilities generated sufficient power to meet
the needs of 97% of Scottish households, equiv-
alent to 2.34m homes. The total output from wind
reached 10.4 million MWh of electricity for the
year. In December alone, output hit 1.4 million
MWh, a record for the month (and 48% above
domestic demand). In a separate report by WWF
Scotland, the environmental charity compares the
cost of reaching Scotland’s 2030 decarbonisation
target (set at 50g CO2
/kWh or lower) via a renew-
ables-based power generation system or through
an approach based on thermal power plants with
carbon capture and storage technology attached.
The first option is projected to cost an estimated
£663m a year, compared to £1.85bn a year for the
second. The cost of a renewables-based system
is broadly similar to the cost of generating the
same amount of unabated gas-fired electricity,
the report concludes. The latest available figures
show that Scotland’s grid intensity is approximately
271gCO2
/ kWh.
WWF Scotland: Pathways to power
Fat Cat Tuesday
Dread going to work on Monday? Not if you’re chief
executive of a major UK company. By Tuesday 5
January, the second day of the working year for
most employees, the leaders of the FTSE 100 had
already earned more than the annual average for
the typical UK worker. The average UK salary in the
UK is £27,645 a year (up from £27,200 in 2014),
compared to £4.96m for top bosses (equivalent to
£1,200 per hour). The figures are published by the
High Pay Centre and are based on the Manifest
MMK pay survey.
High Pay Centre
Climate change to hit south-east Asia hard
South-east Asia could lose up to 11% of gross
domestic product (GDP) by 2100 due to climate
change if no action is taken. The warning comes
not from an environmental group, but the Asian
Development Bank (ADB), a level-headed multi-
lateral lender. Greenhouse gas emissions in the
region have increased by about 5% per year over
the past two decades, largely driven by deforest-
ation and changes in land use. Without explicit
mitigation measures, the ADB estimates that the
region’s emissions will jump by at least 60% by
2050 (compared with 2010), with energy sector
emissions rising by six times that rate. To keep
emissions at 500 parts per million would require
mitigation policies that would cost in the region
of 2.5%-3.5% of the region’s GDP over the 2010-
2050 period. These measures, which mostly focus
on cleaner energy and less carbon-intensive land
use, would bring benefits to health, transport and
road safety that would alone offset 40%–50% of
the policy costs. Add in the climate-change losses
avoided (such as from floods and harvest failures)
and the benefits derived from stabilising the climate
range from 5 to 11 times the net mitigation costs
from 2010 to 2100 (using a 5% discount rate). That
said, if the region delays to take action for 10 years,
the cost of keeping within a 500ppm scenario by
2050 will increase by 60%.
ADB, Southeast Asia and the economics of global
climate stabilization
South-east Asia’s GHG emissions have
increased by 5% per year
12. Stewart Whitney
President
Dave Stangis
Vice President,
Public Affairs
& Corporate
Responsibility
Lindsay James
Vice President of
Restorative
Enterprise
Jennifer Silberman
Chief of Staff & VP
Sustainability
Chris Librie
Senior Director,
Living Progress
Valerie Smith
Director Corporate
Sustainability
Hear from these sustainability leaders:
STRATEGIZE AND ACHIEVE your sustainable business
goals through successful internal engagement and external
collaboration
TAKE OWNERSHIP OF YOUR EXTENDED SUPPLY CHAIN
through effective auditing, vertical integration and certification
schemes
REPORT THE NUMBERS THAT COUNT and drive positive change,
re-enforcing the company vision and purpose
EMPOWER THE WORKFORCE and reduce labor costs through
development schemes, volunteerism programs and a transparent culture
#RBSUSA
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13. 41
Ethical Corporation | August 2014??? Ethical Corporation | February 2016Industry benchmarking
Automotive sector
Innovate,or pull over
By Stephen Gardner and Christian Braun
Car companies are at a junction, with an urgent need to address the
pollution their vehicles cause, especially in cities. Some of the huge
manufacturers are responding much more effectively than others
The big car companies are in an enviable position. They offer an aspirational
product that almost everyone wants. Modern society is, after all, built on
the car. The industry’s success is shown by steadily rising global sales. Figures
from the International Organisation of Motor Vehicle Manufacturers show that
new passenger car registrations worldwide rose from about 45m in 2005 to
65m in 2014, with only a relatively small downward blip in the economic crisis
years of 2008 and 2009.
In the main producing countries, car companies are leviathans with
massive power on which whole ecosystems of suppliers and workers depend.
Germany, for example, in the second quarter of 2015, produced almost 3m
passenger cars. During the same period, 1.6m new cars were registered in
Germany, giving a net export figure of 1.4 million – more than the total produc-
tion of any other country apart from China, Japan, the United States, South
Korea and India. The big car brands “are of national importance for economies
and governments,” says Tom de Vleeschauwer, director of long term planning
and sustainability at analysts IHS.
But power can of course corrupt. It can also engender complacency
and resistance to change. For example, manufacturers have pushed back
Power can
corrupt and
engender
complacency
KIVILCIM PINAR
14. Ethical Corporation | August 2014??? Ethical Corporation | February 2016
42
The growing
world
population is
increasingly
living in cities
against tighter environmental standards. Peter Wells, a professor of business
and sustainability at Cardiff University, says the car industry “remains highly
conservative” and is “an incredibly powerful lobby”.
However, resisting the forces of change does not make them go away. Car
manufacturers face an increasingly urgent sustainability challenge. How each
company responds will define its prospects in the years ahead.
Mobility without pollution
The main issue for the industry is that although consumers want the mobility
that cars offer, cars remain highly polluting, resource-intensive and damaging
to quality of life. The greater the success of the industry in selling new cars,
the more pressing these problems become in terms of the overall impact from
emissions, congestion, harm to ecosystems and noise.
The industry’s sustainability challenge is made more difficult because the
growing world population is increasingly living in cities. The World Health
Organization said in January that research showed that the “public health
emergency” caused by air pollution in cities had become “dramatic”, with
3.3m premature deaths per year worldwide. Congestion and pollutants from
vehicle exhausts are a major cause. “We’re getting close in some of the major
cities to it becoming unsustainable,” de Vleeschauwer says.
The cheating by Germany’s Volkswagen on pollutant tests in the US has
thrown the issue into sharp relief. VW was caught using a secret “defeat
device” in the form of software installed in some diesel models, which detected
when cars were being put through tests to establish their emissions of nitrogen
WINHORSE
Air pollution in cities causes millions of premature deaths
Industry benchmarking
15. 56
Ethical Corporation | August 2014Report reviewReport review Ethical Corporation | February 2016
Ikea Group 2015 sustainability report
Going all-in
By Elaine Cohen
The furnishings giant demonstrates sustainability leadership
Having refurnished my office with Ikea products during the past year,
I appreciate at a very personal level the Ikea message that it aims to create
a better everyday life for people. Making good-looking products accessible,
affordable and easily transportable really does make life easier and greener.
At the same time, Ikea is driving sustainability through its supply chain system-
atically and transparently. Ikea, with 328 stores in 28 countries, 771 million
store visits a year, 155,000 employees and
€31.5bn in turnover, has become a leading
light in sustainability. The FY2015 Sustainability
Report is a testimony to that. Using Ikea’s estab-
lished format, it’s clear, well-written, balanced
and very interesting.
The “going all-in to tackle climate change”
message from Ikea in this report does the job.
This year, Ikea has decided to commit big across
a range of environmental impacts. Whether
this means pledging €1bn in funds to mitigate
climate change, promising 100% renewable
energy by 2020, achieving a fourfold increase in sustainably manufactured
products by 2020, completing the switch of Ikea’s entire lighting range to LED
lighting, committing to 100% sustainable cotton sourcing by 2015, with similar
commitments for palm oil, wood, seafood and leather, or recycling 90% of
waste, there is a step-change in Ikea’s approach.
At the same time, Ikea’s commitment on climate change focuses on a
small part of the supply chain impact. Ikea’s direct Scope 1 and 2 emissions
(730,000 tonnes of CO2
e) are a mere 2% of Ikea’s total all-scopes emissions
(38m tonnes CO2
e). Scope 3 emissions increased by 5m tonnes in 2015,
dwarfing consistent emissions reductions since 2010 normalised by products
sold. Despite the massive complexity in this global supply chain, and Ikea’s
life-cycle assessment of emissions to focus performance improvement activ-
ities, even if Ikea achieves 100% renewable energy in its direct operations as
committed, this barely dents the level of Scope 3 emissions reported by the
Group. The real opportunity for Ikea to mitigate climate change is Scope 3.
While Ikea acknowledges the challenges in this area and describes progress
made and planned, tangible commitments of Ikea’s People and Planet Posi-
tive strategy sidestep this significant area of impact.
16. 57
Ethical Corporation | August 2014???Report review Ethical Corporation | February 2016
Elaine Cohen is a
sustainability consultant
and reporter at Beyond
Business and CSR
blogger
Stakeholder voices
A great feature of Ikea’s report is the inclusion of external stakeholder perspec-
tives, which put a range of “challenges” to the Ikea team, including decoupling
growth from environmental impact, discouraging a throwaway culture and
combating child labour deep in the supply chain. Senior Ikea voices
respond to these challenges, offering the reader a focused perspec-
tive on sustainability dilemmas and demonstrating that Ikea is
connected to the burning issues of sustainable business.
On the other hand, the “Why do you work at Ikea?” piece is a little
forced. Eight carefully selected “diverse” employees each offers one
insight about working at Ikea. It’s nice to see their faces, and hear
that they appreciate diversity, opportunity and positive culture. I did
wonder, however, if these are all full-time employees. Ikea’s 155,000
workforce includes of 53% part-time employees of whom 36% work
less than 34 hours per week, 17% less than 20 hours. Not much is said
about the reason for this high level of part-time working (voluntary or
obligatory?) or the difference in benefits across these groups. For
example, Ikea provides recognition and tangible additional benefits
for employees through the One Ikea Bonus programme and loyalty
programme – but benefits appear to be for full-time employees only.
On the other hand, in a section on “the right to decent work”, Ikea
acknowledges the need for consistent standards on minimum hours
of work for part-time workers and describes plans to develop these.
Looking to 2030
Ikea is an early adopter of the UN Sustainable Development Goals
framework and includes an index of its sustainability activities
aligned with the 17 goals, hyperlinked to the relevant sections in the
report. This is another example of how Ikea has enhanced its global
sustainability leadership – quietly moving from an underdog positioning of
cheap, consumerist and low-quality to positive and purposeful impact. Ikea’s
report does not apply Global Reporting Initiative (GRI) guidelines but uses
them to “inform our reporting”, preferring to stay with Ikea’s own strategy and
KPI framework while demonstrating consistency in practice against multi-year
targets alongside participation in industry initiatives to improve sustainable
practice.
Alongside this, while we could always demand more, Ikea is demonstrably
leveraging its scale and reach to change consumer behaviour and awareness
around sustainability through its core offerings and commitment to transpar-
ency, as well as driving its suppliers and suppliers’ suppliers to comply with
sustainable standards. n
Snapshot:
Follows GRI? No
Assured? No
Materiality analysis?
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Sustainable
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