Archive for January, 2009

Norway’s SWF Sells US Cluster Bomb Maker

Based on a recommendation from the Norwegian Council on Ethics, the Ministry of Finance instructed NBIM, Norway’s Sovereign Wealth Fund (SWF), to exclude Textron, because the company manufactures a ‘Sensor Fuzed’ weapon, a cluster bomb.

 

Council on Ethics

Norway's Council on Ethics

Why the sudden sell off? NBIM has traditionally excluded cluster bomb makers but with the stricter definition of cluster bombs laid out in the recently signed new international treaty banning cluster weapons signed in December 2008, Norway’s Council on Ethics decided to revisit the country’s significant ($36m) investment in Textron, which also owns plane-maker Cessna.

 

Textron insists that its ‘Sensor Fuzed’ weapon’s advanced technology precludes the possibility of its ordinance remaining unexploded, risk the lives and limbs of innocent civilians.

More here: BBC, IHT, Reuters

List of Norway’s SWF Excluded Companies: Link Here

TOP Corporate Philanthropy Award?: Czech Donors Forum

In November 2008, the Czech Donors Forum (Fórum dárců), a proponent of Corporate Giving as CSR, recognised ‘socially responsible companies’ in the 5th TOP Corporate Philanthropy Awards.

Coming in 1st place in the Quantitative category, i.e. the firm that ‘distributed the highest volume of resources’, is the state-controlled electricity company CEZ.

(Its worth noting that CEZ, which is in a monopolistic position, has in the past been accused of Manipulating Energy Prices to Inflate Profits: Article at Czech Business Weekly

Other firms that received recognition include Skoda, Ceska Sporitelna and Microsoft.

czech donors forum awards 2008

Press Release: Czech Donors Forum

Also at: CSR360, The Prague Post

State of Czech CSR: An Interview with Business Leaders Forum

How are companies taking to CSR in the Czech Republic? 

What does the future hold for CSR in this Central European economy?

We ask Tomas Nejedlo, Executive Director of the Business Leaders Forum, a champion of CSR in Prague.

 

 

Tomas, what is the Business Leaders Forum’s mission?

When we first started out, our broad mission was to promote ethical business, when activities of the like were termed ‘corporate citizenship’.

Now after being established for a while, our specific mission is to bring Czech business leaders together to share their experiences and knowledge with each in the field that is now called Corporate Social Responsibility.

 

That’s great, but what specific activities does BLF engage in?

A key, long-standing program we are particularly proud of is our ‘Manager Shadowing Program‘ where we connect talent from universities with managers in business.

With universities, we also offer their faculty guidance in and encourage them to communicate and offer their services to businesses.

Education is also a focus of our activities, towards this we have produced a variety of booklets, conferences and even a dedicated website at CSR-Online.cz which publishes both theory, real-life practical applications and a diary of relevant activities.

To recognise leaders in the field, we administer a health, safety and environment award and nominate outstanding business projects to the European Commission for a European award.

Finally, to provide a globally accepted framework of measurement to Czech business, we have recently completed the translation of the Global Reporting Initiatives guidelines.

 

Tomas Nejedlo, Executive Director of Business Leaders Forum

Tomas Nejedlo, Executive Director of Business Leaders Forum

 

 

From your experiences, what do you think Czech companies believe CSR is?

With so many ‘expert opinions’ no one really has a universally accepted definition of CSR. One popular view, which in my opinion is nonsense, is that CSR is ‘doing good for society’ (i.e. foundations & philanthropy). This is the view championed by the Czech Donors Forum.

From the beginning, we have presented CSR as being about about business, about management. We are pleased that this view is growing in popularity.

But specific priorities are even more diverse and company dependent, with many Czech companies’ focus on Work Life Balance and their Environmental impact but, for example, Skoda Auto’s focus is about their Supplier & Sub-Contractor relationships. 

We also cannot forget the strong tradition of responsible business in the Czech Repubic, 1st brought to international attention by the efforts of Tomas Bata, this tradition has made many managers come to me asking why we are calling it CSR when it really is just ‘normal activity’. I tell them that it is important to recognise these activities and approach them with the same language as the global economy via, for example, the Global Reporting Initiative.

 

Are there any companies that are truly leading the way in the Czech Republic?

I really love Kovohutě Příbram, which is a medium organisation in central Bohemia engaged in the recycling of old batteries and selling the Lead from them to companies.

I’d also like to highlight O2, which has really surprised me, their presentation and activities have been outstanding in the last year.

 

There has been significant concern that due to the economic turmoil, CSR activities will suffer, so you believe Czech companies will cut down on their activities?

My personal feeling is that CSR is not just about costs so I actually think that this is a good opportunity for companies to develop new methods and new activities which will benefit the company without any extra cost.

 

America’s new President has just been inaugurated, his speech at the event highlighted his desire for both sustainability and accountability to be key priorities for his administration in the coming years, what do you think this means for CSR in the Czech Republic?

To be honest, I have no idea. The question is how will his influence, in turn influence our region. This effect could be strong with many firms here not engaging in CSR for CSR’s sake but to fulfill the demands of their clients.

Yesterday, while presenting the idea of CSR at a Sponsorship conference, participants reminded me that in an open economy like ours, our customers are often international, with products that are likely sold in the west, where customer concern for CSR could grow significantly.

So again, the influence of the new US administration will not be a direct one, but an indirect one through the supply chain.

 

What do you think will be the key challenges for CSR in the Czech Republic in 2009 and how do you intend to address them?

I believe one of our key challenges will be the adoption of globally accepted frameworks for CSR and will work towards encouraging discussion about measuring & reporting in the business community. But we have to first find partners and companies who are both willing and suitable.

Czech Business Weekly have also recently published a Great Article by Lenka Česenková, CSR Consultant at Ernst & Young CZ: Link Here

Tesco: Green from China to Czechia?

Tesco CZCan Tesco meet its CEO Sir Terry Leahy’s vision of halving its carbon footprint by 2020? 

If it will, surely its operations outside of the UK which account for nearly half of its 4 thousand strong array of global stores will have a pivotal role.

Solar Power in Czechia 

In the Czech Republic, Tesco is in the midst of building the country’s largest private Solar Power Facility to generate 30% of the energy for the 24,000 sqm Distribution Center it will set above.

Setting aside the Solar Power however, the Distribution Center itself does not seem to be the most environmentally friendly structure around. It runs 24/7 lights burning, is kept at an average temperate of 9 degrees Celsius and is home to a fleet of 250 trailer trucks.

Some sustainable features have been implemented however, including the switch to fluorescent and a cooling systems which releases air (pushed underground during the day) at night to cool the building.

More at Adrian Chen’s Article @ The Prague Post

Another Energy-Saving Store in China

This week saw the opening of China’s 3rd ‘Energy-Saving’ Tesco Store in Tieling, North-East China. It joins the 1st store in Shanghai and 2nd store in Tianjin as models for Tesco’s plans to introduce updated energy-saving initiatives to all its 59 stores in China.

The ‘energy-saving’ features in the new Tieling store seem a little less than inspiring and  focus on efficient cooling systems which Tesco estimates will reduce  the store’s energy consumption by 25% (halfway to 50%!).

More at: ChinaCSR, BizChina and China Retail News

Earlier Article about Banned Plastic Bags in China: EvolvingChoice

Update: Tesco has just opened a store in Cheltenham, Manchester with similar features to the Chinese ‘Energy Savers’ claiming a 70% reduction in an equivalent store’s carbon footprint. From: BusinessGreen & ClimateBiz

 

What do you guys think? Could Tesco halve its Carbon Footprint by 2020?

1st US Mutual Fund to use Sustainability Index

DJSI

Announced on December 18th, the Dreyfus Global Sustainability Fund is the 1st US Mutual Fund to use the DJSI Global Index as its investable universe. In plain english, this means the Fund will only select investments that have passed the fund’s strict sustainability criteria.

BNY Asset Management LogoDreyfus, part of BNY Mellon Asset Management, will join the Chicago Climate Exchange and State Street Global Advisors as the 3rd US Licensee of DJSI. Germany counts 11 Licensees, Switzerland 6 and Japan 2.

Dreyfus’ Chief Investment Officer, Phil Maisano, believes the fund is being launched at an ideal juncture in US government spending priorities:

We expect over the next several years a substantial governmental commitment to invest in the environment. The new Dreyfus Global Sustainability Fund is well positioned to capitalize on this growth area

Also on:  SocialFunds, GreenerPastures

Press Releases: DJSI, BNY Mellon

Credit to Jerome Tseng of CSR Taiwan for putting this on Twitter.

Fiji Water: Food Miles Greenwash?

Fiji Water’s efforts to promote its Green Credentials (previous article here) have received significant attention since launch, not all of it positive of course.

Greenwash BrigadeRecently it made a ‘Top Greenwashes of 2008′ list by National Public Radio’s Greenwash Brigade along with a satirical comment

‘Yes, shipping water in container ships from a pristine aquifier in paradise is somehow green’

But could it be?

 

Life Cycle

Fiji Green)

Fiji Water's Carbon Footprint (Courtesy: Fiji Green)

Fiji Green (Fiji Water’s Green Blog) points out that bottled water has not been a substitute for Tap Water, a commonly held assertion, but for carbonated soft drinks & sugary fruit drinks.

From an Environmental perspective, bottled water is preferable to these other drinks that use up significant Refrigeration Energy and have a higher Agricultural Impact stemming from the Energy, Pesticides and Fertilizers used in growing their inputs, e.g. Sugar & Corn.

Quoting articles from the New Yorker and the Wall Street Journal, which propose more comprehensive approaches to measuring a product’s Carbon Footprint, Fiji Water asserts that when compared to its alternatives in this comprehensive ‘Life Cycle’ manner, demand for Fiji Water is good for the environment. 

They compare Fiji Water with Apples & Lamb from New Zealand which have a lower carbon footprint (including transport) than locally sourced alternatives in England.

Why New Zealand Imported Produce have Lower Carbon Footprints:

a) Increased Productivity from More Sunshine

b) Lower Direct Environmental Impact from Less Fertililzer Use

c) Lower Indirect Environmental Impact from Greater Access to Renewable Energies

The above factors probably don’t hold true for Bottled Water though, it is hard to imagine that Bottled Water produced ‘Locally’ will have a greater environmental impact than Fiji Water.

What’s more, Fiji Water give themselves (and the bottled water industry) a pat on the back by crediting the switch to bottled water with: Eliminating about a Trillion calories from the American diet.

Food Miles

A growing form of measuring the carbon impact of food & drink has been ‘Food Miles’, the idea that the more food/drink has to travel to get to you, the greater its impact on the environment.

Fiji Water, in its Green Efforts, has actually INCREASED the Distance it travels to get to NYC by 50%. However, it demonstrates that this results in 55% LESS Emissions.

This is largely achieved through an increased reliance on Ocean Freight which generates 85% less emissions than Trucking.

Here are the Past & Current Routes Compared:

Past: Fiji to Los Angeles (Ship) > Los Angeles to New York (Truck)

Current: Fiji to Philadelphia / Newark (Ship) > Philadelphia / Newark to New York (Truck) 

 

Trying

Sure, alot of what Fiji Water is publishing about its activities is easily perceived as spin (e.g. comparing ‘producing’ water with the production of apples and lamb) but I believe they have taken significant steps to sustainably reduce their environmental impact and between bottled water and soft drinks, would anyone insist that we would be better off selecting soft drinks?

How about you?

Do you think Fiji Water’s efforts are a total Greenwash? Vote here:

A Flight to CleanTech?

 Forum for the Future, a sustainable development charity, has published a great article chronicling the recent ‘Chorus’ of political and business leaders envisioning CleanTech as one of the key areas investors will turn to as the financial markets recover.

It asks questions like ‘Will Obama force Detroit to take the Green Road?‘ and makes a case for a rise in interest in CleanTech in light of the current environment of:

a) Volatile Resource Pricing

b) Fears of Peak Petroleum

c) Flight to Tangibles

It also contains some headline worthy quotes from thought leaders such as Nicholas Stern, former World Bank Chief Economist, who said

This Recession will be Big, but Climate Change will be Bigger

and Merril Lynch’s CleanTech Strategist, Steven Milunovich, who refers to its rise as the ’6th Industrial Revolution’ and projects that solid investments in the field include:

Clean Technology1) Energy Efficiency

2) Electric Cars

3) Wind / Solar Powered Microgrids

With Geothermal Energy and Biofuels as Dark Horses.

Currently, like all new business ventures, CleanTech is deeply reliant on debt financing, however if the ‘Chorus’ is anything to go by, this could change very quickly with investors incorporating alternative risk criteria into their decision making.

Deutsche Bank adds Middle East to CSR Foundations

Deutsche Bank Deutsche Bank has recently added a Middle East Foundation to its ‘family’ of foundations already in Asia, Africa and the Americas.
Launched in Dubai’s International Financial Centre (DIFC), amid praise from its Governer, H.E. Dr. Omar Bin Sulaiman, the foundation will focus on funding investments in education, community development, sustainability, and volunteering in the Middle East North Africa (MENA) region.

It can be imagined that regional NGOs will hope that the foundation supports initiatives with higher levels of direct impact than the event that launched it, a public display of part of Deutsche Bank’s extensive art collection normally only shown in their Frankfurt Head Office.

More at:  Zawya, Global Investment Watch, DB Press Release

Greenest Office in the US?

Light Filled Corridor

Light Filled Corridor

Recently redesigned, right in the middle of New York City, Audubon’s new HQ has been awarded the highest point total of ANY commercial interior in the world by the U.S. Green Building Council (USGBC) within its Leadership in Energy and Environmental Design (LEED) Program.

Achieved at only a 10% premium over the cost of less environmentally friendly renovations, the space’s green design features have a payback period of 10 – 15 years.

Some clever features incorporated into the offices include:

  • An Under-Floor Heating and Cooling system which utilises the Natural Bouyancy of Air
  • Lights that Dim according to the Level of Daylight Present

 

Audubon's Green Office

Audubon's Green Office

A Carbon Neutral Hotel – URBN Shanghai

Shanghai, one of the world’s most rapidly growing cities, in a country which produces the world’s highest levels of carbon emissions (24% of Global Total), seems to be a fitting location for one of the world’s first hotels that claim to be Carbon Neutral.

In typical Shanghai fashion, this project draws from diverse backgrounds and skills from across the globe. Conceived by a Californian and a Chinese-Australian and designed by 3 Canadian Architects based in China, including Tais Cabral, a Brazillian native who imbued the interiors with ‘a sense of luxury, modernity and comfort’.

    

URBN Hotel Shanghai

 

URBN Hotel Shanghai

So what makes this development so special then?

It’s Construction

The site itself is ‘recycled’ with the developers transforming a former factory building.

Bricks and Tiles used were Salvaged from Demolished Buildings.

All the Hardwood used was Reclaimed.

Additional Building Material was Locally Sourced.

It’s Design

Natural Shading is provided by Living Bamboo.

Ambient lighting comes courtesy of Fluorescent Lights housed in Lanterns.

Power is Supplemented by Passive Solar Shades

Rain Water Retention Basins are used

The Air Conditioning is Water Based

It’s Programs

All Energy Used (yes, including staff who commute and all supply deliveries) is Offset with Carbon Credits

 

URBN has grand plans for the future too, in an interview with Jill Stalowicz of Feel More Human, URBN indicated plans to expand to 20 Hotels throughout China including ones in Beijing, Hangzhou, Dalian & Suzhou and to include a retail section with ‘home-grown organic products’.

Since its opening in December 2007, the project has received significant attention from the travel world, named in Conde Nast Traveler’s 2008 Hot List, cited by Fodor’s Hot List and reviewed by the the NY Times.

Not Alone

It however is far from alone with ‘Eco Tourism’ growing by leaps and bounds in recent years. 

Kapawi Lodge - Ecuador

Kapawi Lodge - Ecuador

Conde Nast’s Concierge.com highlights some of the best,

from a lodge in Kenya run by Maasai Tribesman without skimping on Italian Linen…

to one in the Ecuadorian Amazon, run by the Achuar Natives on Solar Energy, while not denying traveler’s their Filet Mignon…

and even a property in Egypt built out of Clay and Salt with only oil lamps & candles to light the way, without skimping on the comforts that persuaded Prince Charles and Camilla to holiday there!


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