Justice for All: Climate Change and the Energy Economy

The TakeAway: It’s time for us to reach across social and cultural divides to kickstart our economy and advance the cause of justice. One way of doing that is to address fear and mistrust head-on, and then work together to encourage more investment and follow-through in the energy economy—especially the job-generating Better Buildings Initiative.

Today we celebrate Martin Luther King, Jr.’s tireless efforts for simple justice—not just racial, but economic. So it’s a good occasion to celebrate continuing efforts to bring about economic justice, and contemplate what we, the people, can do to advance it. That’s why last week’s powerful speech by AFL-CIO chief Rich Trumka continues to resonate, especially when he said: “The truth is that in many places – and not just places where coal is mined – there is fear that the ‘green economy’ will turn into another version of the radical inequality that now haunts our society—another economy that works for the 1% and not for the 99%.”

Amidst the political gridlock and troubling gaps between the rich and everyone else, Trumka’s remarks snapped everyone to attention and hammered home a message that helps loosen the lock and build a bridge. He appeared before a gathering at the United Nations of roughly 500 global investors and financial players concerned about climate risk. (The speech, which was streamed live, can be viewed online[1]). His remarks drew a standing ovation from the assembly, who together control $20 trillion and hail from four continents. They were in New York for the 5th Investor Summit on Climate Risk and Energy Solutions, an annual affair co-hosted by Ceres, United Nations Foundation, and the United Nations Office for Partnerships (UNOP).

Trumka’s speech occurred near the end of a day packed with practical information on new ideas and financial products for scaling climate and energy solutions, how to make the clean energy transition in both the developed world and emerging economies, and how the financial community can influence social policy. The Investor Summit was capped by the release of the 2012 Investor Action Plan on Climate Change Risks and Opportunities, a 5-point manifesto for managing and integrating climate considerations into portfolio decision making—including the selection of investment managers, greater investment in low-carbon / energy efficiency solutions, and integration of water risk and opportunities.

But it was Trumka’s talk that dazzled, because he called upon investors, workers, environmentalists, and policy makers to remember the 99 percent and the need for shared respect in forging a new national commitment to economic recovery and sustainability. His words underscored the critical importance for those of us working in the corporate governance, social responsibility, and sustainability space to do a better job engaging and enlisting the general public in building a better world. Continue reading

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Getting Off the Couch

The TakeAway: Last year we became conscious of the breakdown in public trust and its civic moral and economic consequences—and what average people can do to make a difference. This year more of us will get off the couch and work to refuel the engines of democracy and capitalism, of liberty and prosperity, to promote community well being, for decades to come. Here’s the beginning of a series on how.

“2011 set the table.  2012 has the potential to accelerate the ‘revolution’ toward the new corporation agenda,” Allen White wrote to a group of us the day after New Year’s. “Growing wealth disparities between managers and workers, regressive taxes, privatizing gains while socializing losses, ‘too big to fail’, hyper-leveraged organizations linked to financial destabilization and dislocation—these are among the many, linked conditions that are bringing unprecedented scrutiny of the purpose and design of corporations,” he said.

White, who’s a Senior Fellow with Boston-based Tellus Institute for a Great Transition, was referring to the fact that, despite the “volatility and hardship” of 2011, it was a year that also provided hope—perhaps falling short of “urgently needed systemic change,” yet offering “glimpses of the possible.” He also drew upon remarks made at last year’s World Economic Forum by U.N. Secretary General Ban Ki-moon, which underscored the importance of “revolutionary thinking and action” to bring about sustainable development in all aspects of modern life.  White was signaling to those of us affiliated with Tellus’ Corporation 20/20 project – now in its tenth year – that 2012 bodes well for redefining the purpose of business within a larger public interest context, in which questions about purpose and meaning – affecting economic, political, and civic life – are raised and, more importantly, addressed.

I couldn’t agree more. The signs are everywhere. Continue reading

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Song of Sorrow or Call to Arms? Four Stratagems to Improve Our Politics

The TakeAway: While extremist politics dominate Washington, financial markets continue to seize, and US credit-worthiness takes a beating, advocates of sustainability and good governance need to stop moping and get off the bench. Here are four stratagems to reverse the tide: educate and engage a broader public, hold political candidates accountable, and support Bob Massie for U.S. Senate.

What a week this was: in the face of a double-dip recession, the Dow exhibits bipolar behavior, its wild volatility (including the worst trading days since September 2008) an apparent reaction to last Friday’s unprecedented downgrade by Standard & Poor’s of the nation’s debt rating, from “AAA” to “AA.” President Obama hit the airwaves Monday afternoon, less than a week after signing a debt-ceiling bill that many believe is a complete capitulation to right-wing Republicans because it failed to include any tax increases while calling for massive cuts—which in the long run won’t make much of a difference. Adding insult to injury, Congress abdicated its authority to a 12-member “Super Congress” that supposedly will recommend at least $1.5 trillion of additional deficit measures, further concentrating public power in the hands of a few.

Meanwhile, despite last year’s passage of omnibus financial regulatory reform, its opponents have taken to the courts while seeking to castrate the SEC by defunding its ability to make and enforce rules based on the law’s provisions. Unemployment remains at historic levels (9.1 percent), with nearly 14 million Americans out of work and more than 6 million of them jobless for more than six months.  Income / wealth inequalities – exacerbated across racial and ethnicity lines – continue to rise, with most Americans unable to cope with a $1,000 emergency. This is a picture far removed from Washington’s political gamesmanship as politicians gear up for 2012 elections. Last night’s Republican debate was the opening salvo in what promises to be a dreary, dirty campaign season.

No wonder the public is fed up. A Washington Post poll reveals that three-quarters of the American people have little or no confidence in Washington’s ability to repair the economy. The vast majority are dissatisfied by the way the way our political system is working, and believe Washington is focused on the “wrong things.” “The decline in confidence has potentially profound implications for coming elections,” reports the Post, “although the anger appears directed evenly between the two parties.”

We’re suffering from a “failure of leadership,” opines the New York Times, telling us what we already know: that our elected officials have no sense of what we need, no empathy for our plight, and no apparently ability to speak our language, define the problem and call upon us all to rise to the occasion and fix it.

You’d think that in the face of this mess that my colleagues, who’ve dedicated their lives to sustainable prosperity and social justice, would rally quickly and use their power as civic change agents as effectively as they’ve used their power as private sector change agents. You’d think that they would apply their recognition of the links between private prosperity and the public good and the overlapping interdependence of healthy ecosystems, and work to complete an incomplete picture of what’s wrong and what’s needed.

But you’d be wrong. Continue reading

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The Sustainability Ratings Industrial Complex: Breaking the Hold

The TakeAway: The recent launch of the Global Initiative for Sustainability Ratings seeks to bring some order, quality, and accountability to the diverse and booming growth industry of sustainability ratings and rankings—also a topic of the online “SustyChat3” among experts, occurring this week on the OpenEyeWorld platform.

Today we celebrate another “movement milestone”, one of several occurring during the month of June: the long-awaited launch of the Global Initiative for Sustainability Ratings (GISR), announced at a Washington, D.C. briefing held June 9th by the nonprofit groups Tellus Institute and Ceres.  GISR’s purpose, according to the press release, is to “create and bring to widespread adoption a single standard for rating the sustainability performance of companies.”  GISR will operate as an independent, non-commercial framework that “builds on the current system’s strengths and, corrects its shortcomings, thereby unleashing the full power of ratings to drive sustainability deep into capital, procurement and consumer markets.”

That announcement coincides with year-long efforts of SustainAbility, a think tank and strategic consultancy, to examine and improve the corporate social responsibility (CSR) / sustainability ratings space, and sustainability expert Bill Baue’s work to spark conversation among experts about the value, role, and improvements needed to link ratings to performance improvement and impact.  “Corporate sustainability ratings are trending as a hot issue in the CSR space, so they’re a perfect focal topic for the third Sustainability Chat on OpenEyeWorld,” said Baue.  Baue, a MurnPost Co-Founder and ad hoc Editor, is curator of the two-day “SustyChat3” on Sustainability Ratings.  It’s happening today and tomorrow at OpenEyeWorld, a commercial platform for online sustainability expert engagement.  Representatives of both SustainAbility and GISR are moderating one of the three SustyChat3 dialogues. Continue reading

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Human Rights: A Moral and Material Business Concern

The TakeAway: Several sustainability milestones were reached in June, but the greatest of these was the UN Human Rights Council endorsement of the Guiding Principles for Business and Human Rights, which established human rights as both a moral and material consideration for economic enterprise.

It’s the end of June, and time to break out the sunscreen and flip-flops. Before sipping those sangrias, we thought it worth reviewing the major milestones occurring this month, which advance sustainability and justice.  Among the markers are those involving human rights; sustainability impact; integrated / sustainability reporting; and sustainability ratings. This progress signals the maturation of a movement that has ancient roots, yet continues to be challenged by those with parochial beliefs in unlimited growth and the supremacy of coins and paper over people and planet.  And, they point to new frontiers in need of civilization, particularly regarding stronger integration of sustainability and justice into socio-political systems and an emerging world economy. Today and tomorrow, we’ll provide a recap before commencing flag-waving and fireworks.

Human Rights: A Moral and Material Business Concern

First up: the landmark June 16th UN Human Rights Council (HRC) endorsement of the Guiding Principles for Business and Human Rights: Implementing the United Nations “Protect, Respect and Remedy” Framework. The HRC action further establishes human rights as both a moral and material part of economic enterprise, extending a principle that’s been around (but not widely accepted) for decades.  (Reminder: South African apartheid and the Sullivan Principles, or Northern Ireland discrimination and the MacBride Principles.)  The Guiding Principles were proposed by Harvard Kennedy School professor John Ruggie, the Special Representative of the Secretary General (SRSG) on human rights and transnational corporations.  We think it’s among the most important milestones in the recent era of corporate responsibility and sustainability, particularly given its emphasis on stakeholder engagement and collaboration among government, business, and civil society. Continue reading

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Bank Foreclosures Draw Investor Ire

Guest Commentary by Ariane van Buren, Contributing Analyst, The Murninghan Post

The TakeAway: Public pension fund investors turn up the heat on big banks as outrage over lending and mortgage practices mounts.

With millions of families losing their homes – and fears that millions more are on the brink – there’s a groundswell of concern about exactly what banks were doing, efforts to create safeguards so it won’t happen again.

Shareholder resolutions calling upon bank boards to conduct independent reviews of mortgage and foreclosure practices at Citibank, Wells Fargo, and Bank of America won high votes this season as pressures mount for banks to come clean about their questionable loan and securitization strategies.  (Vote tallies at JPMorgan Chase were unavailable at this writing.)  The Citigroup proposal received 29.3 percent support (based on votes cast “for” or “against”); those filed with Wells Fargo and Bank of America were supported, respectively, by 23 percent and a 39.5 percent, according to figures provided to Murninghan Post by Heidi Welsh of Sustainable Investments Institute (Si2). Continue reading

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Smart Power, Adaptive Leadership, and Human Rights

Part One of Two

The TakeAway: Advocates for corporate responsibility need to address the wider context of global politics and power, particularly within conflict zones where human rights abuses are most pronounced.

So we got Osama bin Laden. Now what?

This question, raised by pundits and policy makers, generally relates to using military power to protect and advance American interests. Overall, many reactions to bin Laden’s death – and our involvement with NATO forces protecting Libyans from Col. Muammar el-Qaddafi’s deadly wrath, not to mention continued unrest in Egypt, Syria, and other parts of the Middle East – stem from a misunderstanding of the context of power in the 21st century, and the fact that American influence on foreign policy no longer is restricted to the use of military force, or “hard” power. Continue reading

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Elizabeth Taylor and Social Justice

The TakeAway: Elizabeth Taylor forged a path for “celebrity social responsibility” that enabled others to use their star power for advancing sustainability and justice.

“Celebrity is not something that comes without responsibility.  If I can help further a worthwhile cause simply by lending my voice, I feel that it is my place to do so.”

Last evening when picking up the New York Times at a Cambridge 7-Eleven, I pointed to Elizabeth Taylor’s picture on the upper fold, saying to the young Asian cashier, “Now, there’s a beauty for you, perhaps the greatest movie star of all time.”  “Who’s that?” he asked.  “Elizabeth Taylor,” I said, “someone who was not only a screen goddess but a crusader for social justice, too.” “How come I never heard of her,” he asked.  “Well, maybe because you’re too young,” I replied.  “We’ll never see another like her again.”  “Well, I’ll go look her up in Google,” he said, putting my two dollars in the till.

Who was Elizabeth Taylor? Take your pick.   Continue reading

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Stepping Toward Corporate Sustainability Footprinting

Guest Commentary by Bill Baue, Contributor and Curator, The Murninghan Post

The TakeAway: Corporate sustainability ratings and reports don’t really tell us if a company is sustainable, but sustainability footprinting takes a step in the right direction.

I challenge you: name a corporate sustainability rating that earns its title—namely, by rating a company’s actual sustainability.  Or a corporate sustainability report that reports whether a company is really sustainable.  In other words, do they tell us if the company is doing its part to ensure future generations can meet their needs (to riff on Brundtland) and to preserve a planet similar to the one where we developed our civilization (to riff on Hansen)?

Many ratings and reports tell us how much carbon a company emits, or water it uses, to cite two prominent issues.  Great!  Phase Three of SustainAbility’s Rate the Raters project rightly commends raters who clearly identify their objectives, and the goal of pushing for incremental advances in corporate environmental, social, and governance (ESG) performance is laudable (and may even be profitable, as many raters seek to show.)

But this approach falls short of a more necessary and transformative goal: telling us whether these emissions and water use are sustainable – in the thermodynamic, biological sense (to riff on Hawken) – for the company and the world surrounding it.  Continue reading

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Passing It On: Joan Bavaria’s Legacy

Over at Ceres, nominations are still open – through next Tuesday, March 8th – for the Joan Bavaria Awards, so it’s a good time to reflect on this extraordinary woman who gave so much to what is now a large and vibrant movement.

Established in 2008, the Joan Bavaria Awards for Building Sustainability into Capital Markets were created by Ceres and Trillium Asset Management “to recognize investors, corporations, and NGOs that have helped move the capital markets from a system focused on short-term profits toward one that balances financial prosperity with social and environmental health.”  Should circumstances warrant, each year, an Impact Award and an Innovator Award goes to an individual or organization that “shares the spirit of collaboration and coalition building demonstrated by Joan Bavaria and the organizations she founded.”  Previous award winners include, in 2009, Murninghan Post Co-Founder and Publisher Emeritus Robert K. Massie, now running for the U.S. Senate in Massachusetts; and in 2010, Tim Smith, Senior Vice President at Walden Asset Management, and the Center for Political Accountability.

Please take a moment to reflect, and then submit your suggestions on the Ceres’ website. The 2011 Awards will presented at the May 2011 Ceres Conference in Oakland, California.

Joan’s physical form left us in November 2008, but she lives on in the hearts, minds, and work for thousands of us, each day.  If you don’t know who Joan Bavaria was, you should. Plain as that.  Here’s a glimpse. Continue reading

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