Newsletters
Corporations And Stakeholders
February 2010, Volume 6, Number 2
In This Issue:
- Feature Article: H20: Lots on Tap for the "Next Big Issue" by Matt Turner, Water Program Director, The Future 500
- Future 500 News: Updates on our work
- Report on Teleconference with Nike's Sarah Severn and Corporate Ethics International's Michael Marx
- Upcoming Teleconference with Friend's of the Earth's Michelle Chan and American Enterprise Institute's Kevin Hassett
- Future 500 Blog
- Welcome our newest Partners
- Welcome our newest Senior Fellow
- Support Us
- In Memory of Harry Ott
- Future 500 Blog
- Meet the Staff: Danna Moore, Stakeholder Campaigns Director
- Coming Events: various locations; Seoul, Korea; London, England
- Donate to The Future 500
- Previously Featured Articles
- Be sure to Follow Us on Twitter and Find Us on Facebook!
Feature Article
H20: Lots on Tap for the "Next Big Issue"
by
Matt Turner
There is broad consensus among stakeholders -governmental officials, academics, NGOs, foundations, socially responsible investment groups and business - that water is likely the next "dominant big issue" of the 21st century. A pronounced increase in media articles, exposes, documentaries, voluntary multi-stakeholder initiatives, working groups and campaigns by NGOs and activist groups designed to raise consumer and corporate awareness confirm this trend.
Consider the following global facts:
- Less than 1% (0.0007) of the world's freshwater is easily accessible for direct human use (i)
- Nearly 1 in 8 people in the world, lack access to clean and safe water resources (ii)
- About a third of people without access to an improved water source live on less than a day. More than two thirds of people without an improved water source live on less than a day(iii)
- Poor people living in the slums often pay 5-10 times more per liter of water than wealthy people living in the same city (iv)
While the impacts of the water crisis are most dire and pervasive in the global south, trends are also disturbing in wealthy countries like the United States:
- Thirty-six different U.S. states will experience local or regional water shortages over the next five years (v)
- Agriculture (largely through irrigation) accounts for almost a third of water use, and is currently the largest user of fresh water in the United States. The percentage of total irrigation withdrawals from ground water has nearly doubled in the past fifty years, increasing from 23 percent in 1950 to 42 percent in 2000.(vi)
- In the past five years, over 62 million Americans have been exposed to drinking water that did not meet governmental health guidelines. (vii)
Considering these real environmental and social drivers, it is no surprise that "people around the world view water issues as the planet's top environmental problem, greater than air pollution, depletion of natural resources, loss of habitat, and climate change," concludes a 2009 commissioned report conducted by the notable research organization Globescan on attitudes about fresh water sustainability, management, and conservation.
The popular catch phrase bandied by experts and practitioners that is resonating with mainstream media is that "water is the next oil." It's evocative, and an immediate call to action. But it masks a critical difference - there is no substitute for water.
Alternative sources of energy can be indentified and advanced to replace oil but not for water. Legal frameworks at the international, national and local levels that regulate water have some similarities, but are very different from that which regulates minerals such as oil.
Regardless of the popular oil metaphor, understanding and acknowledging the importance and timeliness of the water issue is complex. The issue is exacerbated by population growth in the developing world, increased demand for energy and food (both highly intensive users of water), climate change, and inefficient water management by individuals and industry often through market distorting subsidies. Non-alignment between government (and even split among the municipality, state and federal levels), civil society and business is pervasive - and further complicates the issues.
Acknowledging these gaps and challenges, as well as understanding the opportunities, 27 of the key regional and national US environmental funders convened at the Johnson Foundation at Wingspread for a three-day forum "to develop a shared sense of how the foundation world can best help solve the nation's [fresh]water challenges." The driver for the special forum "was based on a growing concern in the foundation community that current efforts to support water resource management fall short of what is needed to prevent and overall decline in natural ecosystems while also sustaining the water needs of our human population."(x)
The water funders agreed there are many gaps within the water sphere - but also concluded: where there is challenge, there is opportunity.
In the same '09 Globe Scan survey respondents from the seven largest countries, both urban and rural, overwhelmingly said that "large companies were nearly as responsible as governments for ensuring clean water" and that having access to clean drinking water "will require significant help from companies."(xi)
One of the most pressing gaps and limited factor for more strategic policy and action hinges on the void of robust corporate disclosure of water risk and use. The Norwegian investment giant, Norges Bank Investment Management, emphasized this point in a November 2009 report: "As water becomes an increasingly constrained resource, it also becomes an investment issue. It is vital that institutional investors have access to high quality information on how water-related risks threaten corporations in order to make better-informed decisions."
Moreover, a widely cited report issued jointly by CERES and Pacific Institute in 2009 stated: "Businesses and investors are largely unaware of water related risks or how climate change will likely exacerbate them. To address this poorly recognized challenge, increased corporate water risk disclosure is vital.
To help plug this gap and to stimulate much wider corporate reporting, the Carbon Disclosure Project, a popular voluntary initiative that works with shareholders and large companies to disclose corporation's greenhouse gas emissions, is launching a sister Water Disclosure Project with its first round of surveys going out to large corporations this month. The CDP Water Disclosure program is intended "to help institutional investors better understand the business risks and opportunities associated with water scarcity and other water-related issues, by increasing the availability of high quality business information on this critical issue."
Unlike carbon, which can be dealt with locally at the highest levels of government, water is truly a local issue, demanding active engagement and leadership from private industry and agriculture, the largest user and most highly vested water stakeholder. In this context, every human being is a stakeholder, requiring that communities play an active role in ensuring water is managed in a democratic and sustainable manner, leading to growing acceptance of a human right to water.
New opportunities - through technology, innovative best practices from areas with experience in water stressed areas, and strong collective industry action - are emerging. The key will be to ensure that the key segments of the water issue emerge from their silos to work collaboratively.
Regardless of how collaboratively stakeholders choose to act, the next months and years promise to be transformational for how we view water. Whether water is the next oil, one thing is clear: the delivery of reliable and safe drinking water, a concern for NGOs for decades, is now finally atop governmental agendas and rapidly rising on the radar for business as both a risk and an opportunity.
(i) UNICEF/WHO. 2008. Progress on Drinking Water and Sanitation: Special Focus on Sanitation.
(ii) Ibid
(iii) http://water.org/learn-about-the-water-crisis/facts/
(iv) http://water.org/learn-about-the-water-crisis/facts/
(v) http://www.alternet.org/water/82378/
(vi) http://www.nationalatlas.gov/articles/water/a_wateruse.html
(vii) http://www.nytimes.com/2009/12/17/us/17water.html?_r=1&pagewanted=print)
(viii) http://www.pacinst.org/phprint.php
(ix) http://www.johnsonfdn.org/conference/national-water-funders-forum
(x) http://www.johnsonfdn.org/sites/default/files/conferences/whitepapers/10/02/05/DOWNLOAD_NATIONAL_WATER_FUNDERS_FORUM_MEETING_SUMMARY.pdf
(xi) http://www.circleofblue.org/waternews/wpcontent/uploads/2009/08/circle_of_blue_globescan.pdf
Future 500 News
Get Informed:
On February 10th, 86 people participated in the inaugural Future 500 corporate/NGO teleconference with Sarah Severn, Nike's Director of Stakeholder Partnerships and Michael Marx, Executive Director of Corporate Ethics International, entitled Achieving Sustainability: The Urgency and Potential for new Business-NGO Alliances.
Michael and Sarah began the call outlining lessons learned from their years of experience in corporate-NGO engagement and then focused on three current examples of areas where NGOs and companies are working to advance systemic change.
First, they explored the CERES-BICEP coalition's efforts on the passage of innovative climate and energy policy as a collaboration that leverages "corporate convening power" in a coalition with a credible NGO network like CERES that "makes the impact even stronger". This model could be expanded to influence legislation in other areas, such as the extractives industry - gold, copper, forestry.
They moved on to a discussion of Global Initiative on Sustainable Ratings, an effort to distinguish between the explosion of competing sustainability rating standards by "rating the raters" so that "we do a better job of differentiating between good companies internalizing costs and bad companies externalizing costs." Such a system is needed to create more "transparency" and "accountability" by the standards, enabling companies, NGOs, and analysts to focus on fewer "high rated" standards.
They concluded with a discussion of the Green Exchange, a Nike-led effort whereby currently un-used patents on innovations that could solve pressing sustainability issues are made freely available to social entrepreneurs, academics, researchers, or companies. NGOs could partner with the Exchange, serving as 3rd-Party reviewers who vet the social and environmental benefits of new innovations.
Future 500 Teleconference Series:
Future 500 will be hosting its second teleconference in March with Michelle Chan, International Team Director of Friends of the Earth, and Kevin Hassett, Senior Fellow and Executive Director of Policy Studies at American Enterprise Institute, entitled Climate Policy: Business-NGO Vantage Points to Effective Legislation.
Both of these speakers bring a wealth of expertise to the climate debate. Michelle Chan has worked in the field of environmental finance for 15 years and works with major financial institutions to develop environmental management systems. She is the founder of BankTrack, an international NGO network, and is currently coordinating Friends of the Earth's China-related work.
Kevin Hassett has served as a senior economist at the Board of Governors of the Federal Reserve System and an associate professor of economics and finance at the Graduate School of Business of Columbia University, as well as a policy consultant to the Treasury Department during the George H. W. Bush and Clinton administrations.
The speakers will use an economic lens to analyze the current cap and trade system as well as alternative policy approaches, cap and dividend and carbon tax shift. Please watch for more information to come in the upcoming weeks. If you have any questions please feel free to contact Danna Moore, Future 500's Director of Stakeholder Campaigns.
Join the Discussion:
The Future 500 Climate Blog is up and running! The site will act as an open-ended forum for a wide range of stakeholders to address action on climate policy. Our goal is to provide a hub for those interested in discussing how to collaborate and build a network of support for federal legislation. Please come join the discussion here!
New Partners:
We are pleased to welcome our newest partners, Pepsi in support of our Water Program, and Renesas in support of our Labor & Transparency program focused on the information and communications technology (ICT) sector.
The Asia Water Project has launched its new website, with Future 500 named alongside CSR Asia, BSR, ICCR and others, as a project network member "contributing to build knowledge and share best practice around water resources and management in China.
Welcome our newest Senior Fellow:
We are pleased to welcome our newest Senior Fellow, Mark Satin, who will lend his extensive experience to Future 500's efforts to bring together the people and ideas of the political left and right. Mark has worked as a prolific political thinker and writer spanning five decades. Most recently, he has progressed the concept of the "radical middle"; a shift from schoolyard combative politics we see too much of today to more inclusive and collaborative problem solving that genuinely considers and thoughtfully integrates the concerns of left and right politics.
Support Us:
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Harry Ott and Elise Smithline:
Within the span of one week earlier this month, we at Future 500 were reminded to take heed of the circle of life.
We are sad to report that our dear colleague and friend, Senior Fellow Harry Ott, passed away due to complications from routine surgery. Through years of rolling up his sleeves to tackle sustainability problems, Harry earned a reputation as a measured, thoughtful sustainability advocate. He impacted positively all those with whom he worked and knew. His passion, kindness and infectious laugh will be sorely missed; the world was certainly a better place with him in it. Many thanks to the people who have written us with remembrances of Harry, which we have been passing along to his family.
While we mourn Harry's passing and celebrate his life, we are also celebrating the arrival of Elise Hope Smithline, daughter of Future 500 Climate Director Scott Smithline, to the Future 500 family. May Elise be fortunate enough to lead a life as fulfilling as Harry!
Future 500 Blog
Future 500's team of subject area experts are contributing to the conversations over at the Future 500 blog, discussing stakeholder engagement issues related to Climate & Environment, Recycling & Product Stewardship, Water and Labor & Transparency. Highlights of Recent Posts include:- Future 500 President Bill Shireman's argument to End the Bottle Battles and Waste Wars.
- Matt Turner's Lake Tai: Opportunity to Create a Water Blueprint?.
- Erik Wohlgemuth's One Voice, One Vote? and
- Danna Moore's Obama's Hopes for the Future of Climate Policy.
Meet The Staff
Danna Moore
Stakeholder Campaigns Director
Danna Moore came to Future 500 with a background in grassroots organizing and coalition building. She works as Director of Stakeholder Campaigns, helping to mobilize coalitions around important social justice issues in climate change, recycling, water, and human rights.
Prior to Future 500 Danna worked on a wide range of campaigns, forging strong alliances between key stakeholders and policy makers on international justice issues. By establishing an San Francisco-based grassroots action network, Danna helped put pressure on policy makers for the 2007 Farm Bill and Oxfam America's Make Trade Fair and Climate Equity Campaign(s). She also worked as a political consultant fighting against a billion dollar project that would result in the loss of one of the last pieces of undeveloped, environmentally sensitive land in the Bay Area.
Danna studied Communications and International Relations at San Francisco State University, and globalization at the Universidad Belgrano de Argentina and Universidad Complutense de Madrid. She also volunteered in France at Amnesty International, working on a global human rights campaign for political prisoners.
Coming Events
Dow Live Earth Run for Water
April 18, 2010, Various locations
Future 500 partner Live Earth is launching the largest global water initiative in history aimed at solving the world water crisis. The historic campaign focuses on the sources and impact of the water crisis locally, nationally and internationally and actions individuals can take to effectively address the issue: SAVE water, RUN/WALK in 6k races around the world to be held on April 18, 2010, GIVE money to provide clean drinking water where the problem is most critical, and SPEAK UP by signing the UN petition making water a basic human right.
The campaign will integrate 6K Community Run/Walks (the average distance women and children walk for water in many third world countries) with concerts, online components, and hands-on interactive experiences in countries across the globe - helping to create a tipping point to combat this crisis.
Business for the Environment Global Summit 2010
April 21 - 23, 2010, Seoul, Korea
Business for the Environment Global Summit is one of the world's premier international conferences for dialogue and business-driven action for the environment. The summit addresses the most urgent environmental challenges facing the world today. Important topics on the agenda include resource efficiency, renewable energies, new business models and climate policy and strategies.
This year's speakers include Ban Ki-moon, United Nations Secretary-General, George Kell, Executive Director of UN Global Compact, Puma CEO Jochen Zetiz, Siemens Sustainability Director Siegmar Probstl, NIKE VP for Corporate Responsibility Hannah Jones and Coca-Cola VP for Environment and Water Resources, Jeff Seabright.
Responsible Business Summit 2010
May 4 - 5, 2010, London, England
The Responsible Business Summit 2010 will teach you all you need to know to take full advantage of the opportunities this recession offers the CSR professional. Renowned as the CSR community's pre-eminent Conference, this year's event has been designed specifically to inform, challenge and educate you about the issues presenting themselves in these turbulent times - and show you step-by-step how to turn adversity into sound business strategy.
With wide-reaching plenary sessions on the state of CSR in 2010, and 24 case studies devoted to every issue the sustainability pro is wrestling with today, there is no better place to educate yourself and plan for the year ahead.
Gain insights and learn best practices from a roster of speakers including TaTa Beverages' CEO Peter Unsworth, Coca-Cola Enterprises Europe President Huberty Patricot, Amnesty International UK CEO Kate Allen, Head of Social and Environmental Responsibility for IKEA Thomas Bergmark.
Previously Featured Articles
The Power of ICT to Change the Future
When electoral authorities declared Iran's incumbent Mahmoud Ahmedinejad winner of June 2009 presidential elections the power of technology became front page news around the world... READ FULL ARTICLE
Climate Solutions Must Be Real, Not Just Perceived
As Congress moves to enact the nation's first comprehensive climate protection law, economist
Paul Krugman asks that advocates not make "the perfect the enemy of the good." ... READ FULL ARTICLE
Ecology, Economy, and Energy
The relationship between economy and ecology is determinative, because "ecology" is the most immediate measure of the planetary ability to make productive use of current solar income... READ FULL ARTICLE
How to Win the War Against Hate
We are experts on hate. We work with people who hate every day:...corporate executives and activists who hate each other across the developed and developing world. Our job is to decimate hate - to destroy it, and the counterproductive actions hate justifies, so that we clear a path for rational, sensible, effective behavior. Once this is done, solutions can come forward... READ FULL ARTICLE
Multinationals and Their Stakeholders Set Plans For a More Harmonious 2008 Olympics
In August 2008, when three billion people turn to their televisions or the Internet to watch the Olympic Games in Beijing, it won't just be the athletes commanding the attention. China itself, and the many multinational corporations operating there, will also be center stage. They won't be judged for their athletic prowess, but for their performance on issues like chemical spills, child labor, democracy, and press freedom... READ FULL ARTICLE
Turning Conflict Into Cooperation
Ten years ago, top executives at three Mitsubishi companies were suddenly faced with a protracted consumer boycott campaign waged by activist NGO Rainforest Action Network (RAN), which sought to tarnish the company's brand to force it to change its business practices. Instead of fighting RAN, the companies did exactly the opposite of what its lawyers, public relations experts, and crisis professionals advised: They sat down and engaged the group's leaders in dialogue... READ FULL ARTICLE
Toward A Framework for Supply Chain Leadership
This document represents a first step toward a potential framework for supply chain leadership. It is based on interviews of companies conducted before the Working Group (October 2005), literature searches and reviews of thirteen companies and ten independent supply chain initiatives, and discussions among executives during the Working Group. It is a project of the Working Group on Global Corporate Citizenship and Risk Assessment, and is prepared by The Future 500 and The Conference Board...READ FULL ARTICLE
PET Peeve
In the face of continued declines in plastic recycling rates, a handful of PET industry advocates have hit upon a new strategy: prevent new more sustainable alternatives from entering the market. Their approach is just plain wrong. Better alternatives are the key to the success of plastic recycling, and may represent the future of the companies now devoted to PET.... READ FULL ARTICLE.
Avoiding Survey Fatigue
It is an old truism that wise investing depends on good information. While there are well-developed, government-regulated mechanisms for collecting and disseminating accurate and relevant financial information from publicly traded companies, the means for gathering and distributing non-financial information are relatively early in their development. But the demand for non-financial reporting is growing...issues like greenhouse gas emissions and other environmental and social liability potential. Many companies have responded by... READ FULL ARTICLE.
The Stakeholder Imperative, Part 2
In this article, we outline a three-phase stakeholder engagement process. These phases (and the steps or tasks that comprise each phase) build a sequence of activities that can create the foundation for an effective stakeholder engagement process, guide the business strategic planning agenda, and increase a company's ability to be robustly competitive in a changing business environment... READ FULL ARTICLE
The Stakeholder Imperative, Part 1
Today's companies serve not just shareholders but an increasing array of 'stakeholders' including employees, customers, community groups, governmental regulators and environmental advocacy groups...What are the features of this new environment for business? READ FULL ARTICLE
Jumpstarting California's Hydrogen Economy
Governor Schwarzenegger's recent announcement to commit 0 million to create a California hydrogen highway by 2010 positions the State as leading this technological transformation in the U.S. But several states - Ohio, Michigan, New York, Texas - are competing for this title... READ FULL ARTICLE
Dogged By Dozens of CSR Standards
The surge of standards for Corporate Social Responsibility (CSR) and Socially Responsible Investing (SRI) is creating tremendous challenges and opportunities for leadership companies... READ FULL ARTICLE
Future 500's stakeholder engagement methodology is based on feedback and adaptation. In this spirit, we encourage you -- our stakeholders -- to share your ideas below.
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