Bringing Sustainability to Life
We are officially half way through 2021 and ESG stories continue to monopolize the headlines. In this issue we highlight recent events, impacts to People & Planet, as well as considerations for your business.
Environment: Climate Change - What is difference between an increase in global temperature by 1.5°C compared to 2°C? The Answer is a lot!
Social: Mind the Pay Gap! Improving transparency in gender, diversity and wage gaps will attract and retain the best in class talent. improving transparency with Gender and Diversity Compensation
Governance: Ransomware Attacks - your company isn't too small to be concerned.
Environment: Climate Change - What is the difference between an increase in global temperature by 1.5°C compared to 2°C?
With the earliest start to tropical storm season in the Caribbean and record breaking temperatures on the west coast, the impacts of climate change are here. According to NASA’s Goddard Institute for Space Studies (GISS), the average global temperature on Earth has increased by a little more than 1° Celsius (2° Fahrenheit) since 1880. Two-thirds of the warming has occurred since 1975, at a rate of roughly 0.15-0.20°C per decade. Researchers a the World Wildlife Fund have done the analysis and share the impacts to our environment if the temperate increases by 1.5° Celsius v. 2° Celsius. Both are not good and suggest that change needs to happen now.
Companies need to consider climate change impacts as part of strong risk management practices.
But based on current impacts of global warming, businesses need to start planning for a more extreme future. Read our recent article - Business Considerations in a Warming World.
Social: Mind the Pay Gap! Improving transparency in gender, diversity and wage gaps will attract and retain the best in class talent.
Studies are showing that transparency is key to closing pay gaps. In organizations where they report on gender and diversity pay there is less disparity. In countries like the UK, Pay Gap Reports are part of an organization's annual disclosures. Although it is not required in the U.S. it is proving to be a way to tackle the systemic problem of unconscious bias. In a recent article from the Society for Human Resource Management (SHRM) they outline actions organizations can take to address the pay gap.
Governance: Ransomware Attacks - your company isn't too small to be concerned!
The latest Ransomware attack wasn't focused on asking for large ransom amounts from a single company, but rather attacked many small businesses worldwide. REvil the Russian cybercrime organization that took credit for this latest attack was also responsible for the $11M attack on the meat packing company JBS. A comprehensive cyber security plan is required of businesses of all sizes. The Federal Communications Commission has great resources to help small businesses get started in creating and better managing cyber security threats.
ESG Industry Analysis: Katherine Blue, IMPACT Leader for KPMG talks ESG & the Tech Industry in KPMG's "Tech and ESG" Podcast.
In the latest edition of the KPMG U.S. "Tech and…" podcast, Katherine Blue, joins Mark Gibson, KPMG Technology, Media, & Telecommunications Leader, to dive into overall ESG trends for the tech sector as it relates to climate and carbon reduction targets, and what we can expect to see in the future. Listen and subscribe as Mark connects with industry thought leaders on pressing issues and technology’s impact on businesses and the world around us.
ESG Education
Last month we joined Walgreens Boots Alliance’s Health Planet group to discuss how ESG complements Corporate Social Responsibility and Sustainability efforts within an organization. In the meeting we outlined: What is ESG?, How ESG works with CSR and Sustainability programs & reports, How Investors use Sustainability & CSR Reports and ESG data to make investment decisions. It was an honor to discuss these topics with a company making Sustainability a priority in all aspects of their organization. If your organization is interested in learning more about ESG, we can facilitate discussions to help start or accelerate your ESG Journey.
IN OTHER NEWS
Read our July C-Suite Beat! Focused on New Opportunities as businesses adapt post-pandemic
Insight into ESG from Crain's Chicago Business where they answer "What ways does an ESG strategy add value to an organization?"
Are your investment funds "sustainable" or is it just "greenwashing"? The SEC will soon want to know! The SEC to consider new sustainable fund criteria and data disclosure rules.
Schroders' latest "Institutional Investor Study," showing the coronavirus pandemic has sharpened institutional investor focus on sustainable investing.