Masthead graphic based on a painting by Gudrun Thriemer.

Hot Topic

Loading...
Showing posts with label corporate social responsibilty. Show all posts
Showing posts with label corporate social responsibilty. Show all posts

Wednesday, July 02, 2008

B. Burtis; I. Watt; "Getting to zero: defining corporate carbon neutrality," Forum for the future, 2008.

[The issues discussed here go far beyond questions associated with hockey or the use of nuclear power. However, it would be appropriate to recall Stephen Harper's claim that nuclear energy is "emission free." This testimonial is one kind of frivolous claim to being inherently "carbon neutal" that gives rise to the first question below. A hockey teams whose primary or even sole emission reduction strategy is to use some of the big bucks to buy carbon credits and thus "offset" frequent flyer miles and refrigeration plants fueled by natural gas would be an example of the kind of delusion that gives rise to the second question. -jlt]

Two key questions frame the debate about neutrality. Firstly, which emissions should an organization accept responsibility for (the “boundary” question)? Should the organization focus simply on the direct emissions caused by its operations? Or is it also responsible for neutralizing some or all of the emissions that arise in its supply chain or from the use of its products?

Secondly, what strategy should an organization use to achieve neutrality? How far must a company go in actually reducing its emissions baseline? And to what extent can neutrality be achieved through the purchase of carbon offsets or “green” energy?


The Executive Summary gives this glimpse of an answer to the boundary question:
The process for achieving neutrality should begin with an inventory of the company’s entire carbon footprint (or a full life-cycle analysis of a particular product) and the setting of a clear boundary. The company should then embrace a neutralization strategy that prioritizes the avoidance of emissions, their reduction through energy efficiency, the replacement of high-carbon energy sources with low- or zero-carbon alternatives, and then the use of high-quality carbon offsets. Every claim must be backed up by easily accessible, clearly communicated information regarding the company’s full carbon footprint; the boundaries it has applied; and the strategy that has been embraced to achieve neutrality.

A more detailed discussion of implementation leads to the report's eight recommendations. Since these are likely to find immediate practical use sooner among citizen's groups than among the industries they are meant to influence, I have reproduced the full list from the Executive Summary here:

1) Embrace a stretching boundary

The key tension surrounding any claim of neutrality remains reconciling the absolute nature of the claim – implying zero net impact – with a practical boundary-setting process. In the spirit of the term, we recommend that companies accept that claiming neutrality implies some responsibility to consider and address broader value-chain emissions. This is not to suggest that companies accept legal responsibility for the direct emissions of others, but rather that indirect emissions be explicitly considered as part of the neutrality process.

2) Demonstrate a broad understanding of your entire carbon footprint prior to making any claim of neutrality – and ensure that your claim covers a relatively significant set of emissions

A transparent understanding of the company’s full carbon footprint is essential as a prerequisite for any claim of neutrality, regardless of what boundary is set. This does not mean that companies should chase every gram of carbon in their value-chain, but rather that they are able to broadly disclose and discuss where their biggest indirect emissions lie.

Questions remain about the appropriateness of a company making a limited claim of neutrality (i.e., regarding its “manufacturing operations”) when the associated emissions are relatively trivial compared to other emissions in its value-chain. If companies claim neutrality for relatively insignificant sets of emissions, the concept risks losing its legitimacy.

3) Exhibit caution in making blanket corporate-wide claims of neutrality

Any claim of neutrality brings with it some risk, but unqualified claims are riskier than others. Unless the company in question can clearly demonstrate a full understanding and subsequent “neutralization” of its entire climate footprint, blanket claims are likely to mislead and should not be made.

4) Consider whether a claim of neutrality will resonate with your stakeholders

Some companies will always find it difficult to convince stakeholders of the sincerity of any neutrality claim – either because the use of their product or service leads to emissions that dwarf their direct emissions, or because they are seen as fundamentally unsustainable. For those companies, we recommend that they avoid the use of the language of carbon neutrality, and instead seek to show climate change leadership in other ways.

5) Use the carbon management hierarchy to inform your neutralization strategy

The strategy used to achieve neutrality should be informed by a hierarchy that prioritizes the avoidance of emissions, their reduction through energy efficiency, the replacement of high-carbon energy sources with low- or zero-carbon alternatives, and then the use of high-quality carbon offsets.

Offsetting will play an important role in any neutrality strategy, but a claim of
neutrality will ultimately be judged on the company in question being able to demonstrate a declining emissions baseline.

6) Be completely transparent

Given the complexity of the issues and assumptions surrounding any claim of neutrality, absolute transparency regarding all aspects of the claim is essential. Every claim should be backed up by easily accessible information regarding the company’s full carbon footprint; the boundaries it has applied; and the strategy that has been embraced to achieve neutrality.

7) Exhibit and sustain broad leadership on climate change

While it would be technically feasible for a company to achieve neutrality through a strategy of 100 percent offsetting, this would not represent the spirit of leadership embedded in the term. True climate leadership is indicated by companies rethinking their business strategy; engaging deeply with their suppliers, customers and peers; and developing products and services that will thrive in, and help bring about, a low-carbon economy.

While linking such actions directly to a claim of neutrality remains problematic, any company that wishes to position itself as a leader on climate change needs to embrace them.

8) Treat neutrality as a long-term commitment – and an ongoing, dynamic challenge

As stakeholder interest in full life-cycle emissions grows – and methodologies for measuring and allocating responsibility for such emissions develop – we can expect the rules of the game for claims of neutrality to change. Companies should embrace this challenge and use any commitment, or aspiration, to neutrality to drive ongoing change. A commitment to neutrality must therefore be a long-term commitment.

Getting to Zero is published by the UK Forum for the future and the US Clean Air - Cool Planet. The whole document (pdf, 52pp) is available here =>
Recommend this Post


More =>

Sphere: Related Content

Friday, May 09, 2008

Companies still in Burma should put up or get out

No one likes to say so, but ethics is hit or miss in the business community.

Last October, while the Burmese military junta was suppressing protests by Buddhist monks against rising fuel costs, World Report named five Canadian companies doing business with the regime: CHC Helicopter Corporation (Richmond, BC), Ivanhoe Mines (Vancouver), Jet Gold Corp (Vancouver), Leeward Capital Corp (Calgary), and Taiga Consultant Ltd (also Calgary). The Burma Campaign for Human Rights and Democracy in Burma still lists those companies on its dirty list. The Bank of Nova Scotia remains the only Canadian company to have either pulled out or made a principled decision not to become involved.

Folks dreaming of a Democratic victory in the US elections this year may recall that at that time, John McCain introduced a bill in the Senate to ban Chevron from continuing to hold a minority stake in the Yadana gas field in southern Burma. So Republican-style conservatives do not object to telling the lean mean private sector where to get off.

While French President Sarkozy indicated that he did not want Total, the main company behind the Yadana project, to increase its activities, France moved to protect investments the company had already made. French officials insisted that EU sanctions should not hurt Total's operations.

Revenues from gas, $2 billion in 2006, provide the largest source of income for the Burmese military. Most of that gas originates from Yetagun and Yadana.

Both India and China are keen to get their hands on Burma's oil and gas and both have invested in developing infrastructure there. There was some early suggestion, in the wake of Cyclone Nargis that the Chinese might prevail on the Burmese to let in UN relief workers. But neither the government nor its companies had any discernible effect.

According to der Spiegel, "India is also looking for military help from Burma to control its unruly minorities in its remote north-east corner.

EU governments banned Burmese imports of precious metals, gemstones and timber and restricted banking and financial transactions involving Burmese authorities or companies. But the failed to prevent the Burmese generals from using the world's leading global network for cross-border financial transfers, Swift. Swift has its headquarters in Belgium.

Andrew Crane and Dirk Matten, a couple of professors at the Schulich School of Business in York University, Toronto suggest that now is the time for any companies still doing business in Burma "to start rolling up their sleeves."

Companies involved in Burma argue that they can benefit ordinary people more by investing there than divesting. Crane and Matten suggest now is the time to demonstrate some concrete proof that their business links can bring positive social benefits to the Burmese people.

They identify Caterpillar (USA), China National Petroleum Corp. (CNPC), Daewoo International Corporation (Korea), Siemens (Germany), Gas Authority of India (GAIL), GlaxoSmithKline (UK), Hyundai (Korea), and Total (France) as companies still having operations in Burma. (The International Trade Union Confederation)
Recommend this Post


More =>

Sphere: Related Content

Friday, October 12, 2007

"Canada on the Burma Campaign's 'dirty list,'" October 12, 2007.

Canadians will be happy to learn that they can make a difference in Burma, but they might not be happy about how. The British NGO Burma Campaign names five Canadian companies active in Burma (aka Myanmar) on its “dirty list”. The list includes contact information and stock market symbols for the companies so it can be used by campaigners, investment funds and individual investors.

The complete list concentrates on companies with a British presence, but includes outfits headquartered in Australia, Denmark, France, Germany, Hong Kong, India, Japan, Korea, Malaysia, the Netherlands, New Zealand, the Russian Federation, Singapore, Switzerland, Thailand, and the US as well as Canada. Contact information includes email addresses and stock market symbols. Write the company and ask them to use their influence with the Burmese government to end the violence and release the protesters. Urge them to withdraw. Consider selling your stock in these companies. Be polite. You are not helpless.

Burma Campaign UK reminds readers that two days after her release from house arrest in May 2002, Aung San Suu Kyi stated “I don’t think we have found evidence that sanctions have harmed the Burmese people, because they have been clearly limited and many of those who have suffered under sanctions have belonged to the business community. Naturally some ordinary employees have been exposed, but we have not yet found proof that large numbers of Burmese have suffered as a result of sanctions. Sanctions have a role to play because they are a strong political message. But also because they are an economic message.”


CHC Helicopter Corporation
CHC Helicopter Corporation, a Canadian company, is the world’s largest provider of helicopter services to the global offshore oil and gas industry. It has aircraft operating in more than thirty countries around the world including Burma where it has supported offshore operations of international oil companies operating in the country. CHC trades on the Toronto Stock Exchange under the symbols FLY.A and FLY.B; and on the New York Stock Exchange under the symbol FLI.CHC.
CHC Helicopter Corporation
4740 Agar Drive
Richmond, BC
V7B 1A3
Canada
Email: communications@chc.ca

Ivanhoe Mines
Ivanhoe Mines is a Canadian mining company with very close links to the regime in Burma. As the largest foreign mining investor in Burma it operates the Monywa Copper mine in a joint venture with the regime. Rail and power infrastructure in the area of the mine was built using forced labour. The mine could be earning the regime over $40 million a year.

Robert Friedland
Ivanhoe Mines
World Trade Centre
Suite 654-999 Canada Place
Vancouver BC
Canada V6C 3E1
Email: info@ivanhoemines.com

Jet Gold Corp
Jet Gold Corp is a Canadian mining company. Its major focus is searching for gold in Shan state in Burma.
Robert L Card
President
Jet Gold Corp
1102 - 475 Howe Street
Vancouver, BC
Canada V6C 2B3
Fax: 00 1 604 687 7848
Email: info@jetgoldcorp.com

Leeward Capital Corp
Leeward Capital Corp are a Canadian mining company. They are in a joint venture with the regime to mine and export amber.

Managing Director
Leeward Capital Corp
Unit 4, 1922 – 9th Avenue SE
Calgary, Alberta T2G 0V2
Canada
Email: president@leewardcapital.com

Taiga Consultant Ltd
Taiga Consultant Ltd is a Canadian geological consulting firm. Taiga has an office in Burma and works closely with the regime exploring for base and precious metals.

Managing Director
Taiga Consultants Ltd
No 4, 1944 - 9th Avenue SE
Calgary, Alberta T2G 0V2
Canada
Email: taigaltd@taiga-ltd.com

The Burma Campaign also publishes a “clean list” of companies that have withdrawn from Burma or refuse to buy or sell Burmese products. The Bank of Nova Scotia is on that list.

Recommend this Post


More =>

Sphere: Related Content