Tag <span class=climate change" src="/wp-content/uploads/2014/04/cropped-office-building-secondary-1.jpg">

Tag climate change

TED Talks Sustainability: Barton Seaver, Chef: Sustainable seafood? Let’s get smart

The SSC Team November 10, 2015 Tags: , , , Strategic Sustainability Consulting No comments

Nothing inspires us like a good TED talk, and here’s one of our favorites. Enjoy it!

About the Speaker: Barton Seaver is an advocate of sustainable seafood and a chef in Washington DC. His work tells the story of our common resources through the communion we all share – dinner.

About the Talk: Chef Barton Seaver presents a modern dilemma: Seafood is one of our healthier protein options, but overfishing is desperately harming our oceans. He talks about the costs of overfishing - costs hidden underneath the waves. His suggestion on how to restore seafood? Focus on changing the “fundamental meaning of dinner.” 

3 Observations from RILA’s Retail Sustainability Management Report

The SSC Team September 17, 2015 Tags: , , , , , , Strategic Sustainability Consulting No comments

By: Alexandra Kueller

This past spring, the Retail Industry Leaders Association (RILA) announced their brand new Retail Sustainability Management Maturity Matrix, which hopes to be a tool that will be used by retail executives, individual companies, and industry-wide to help companies become more sustainable. Fast-forward to September 2015, and RILA just released their Retail Sustainability Management Report that uses that matrix to analyze sustainability initiatives from over 50,000 RILA member companies.

Taking the 27 dimensions related to sustainability management RILA has identified from seven key sectors, the report looks at where a lot of the companies rank: are they starting, just standard, excelling, leading, or at the next practice already. RILA presents their key findings from each dimension, then provides resources for companies to reach the next level, case studies to look over, and how to get involved on a greater scale.

Here are three observations that really stood out to us:

What comprises a retail-based sustainability team?

RILA offered a breakdown of how many retailer’s sustainability teams look like, and over 50% of those surveyed indicated that there is one person or no full time employee dedicated to sustainability (and a surprising 10% of companies have 10 or more people working on sustainability full time). Often times, the sustainability team will set the sustainability goals for the company, but almost a quarter of the retailers said they do not have sustainability goals. And in terms of budgeting for sustainability, almost 75% of companies said their budget either stayed the same or increased over the past year.

The leaders are well ahead of the pack

When looking at how the retailers did across all dimensions, it becomes apparent most companies are falling firmly in the "standard" category (or rather a 2 on a 1-5 scale). But the leading companies aren't just one or two steps higher, they are already at the "next practice" level (or a 5 on a 1-5 scale). Looking at all of the dimensions, over half the time the leading company was getting top marks - only in 4 dimensions was the leading retailer at the "excelling" level (or a 3 on a 1-5 scale). Leading companies obviously know what they're doing when it comes to sustainability, so now there needs to be an effort to get everyone else up to their level.

A shift to the supply chain

Overall, the supply chain section was one of the weakest, with many companies falling between the “starting” and “standard" category, but as retailers begin to solidify their internal sustainability, there is a growing focus on supply chain sustainability. Companies have started to engage suppliers about various sustainability issues, such as the need to reduce energy and water.

Looking to start a new sustainability project but need to gain support? Find out ways to gain that support for your new project or idea here!

Carbon Risk Assessment in the Financial Sector

The SSC Team August 4, 2015 Tags: , , , , , , , , Strategic Sustainability Consulting No comments
By: Mirele B. Goldsmith How can financial institutions and individuals factor climate change into their decisions about investments?  This question was considered at a meeting hosted by Moody’s Investors Service on Paving the Road to Paris COP21: Discussing Carbon Risk Assessment Strategies on July 27, 2015.  (The list of speakers may be found here.) Those of us focused on sustainability are well aware that over time climate change will impact every aspect of the economy.  The finance sector is facing this fact now that governments are beginning to introduce regulation requiring disclosure of the risks that climate change poses to investors. At the meeting there was a lot of talk about France, where legislation has just been proposed to require disclosure of climate risk.  China is also considering legislation.  The European Union already requires pension funds to consider climate risk.  The SEC requires that companies disclose material risks from climate change, although the speakers described this requirement as “toothless.” What risks could climate change pose to financial returns?   The most obvious risk is that companies will be impacted physically (operator risks) and investors will bear the costs. The risk that seems to be most on the minds of experts is changes in policy.  As one speaker put it, “it is becoming more expensive to pollute.”  Changes in technology which may make businesses obsolete or lead to falling prices are another risk.  And there are reputational risks. Much of the meeting focused on just how the financial risks of climate change can be quantified.  The two big sources of uncertainty are first, that we don’t know how much and what kinds of actions will be taken to mitigate climate change.  And second, we don’t know how much the climate will change.  Risk projections are usually informed by past experience, but there is no historical data that can be used to build and test models of climate risk. The speakers presented several tools that are designed to help investors at various levels incorporate climate into their risk assessments.  Speakers from the World Resources Institute and UNEP Finance Initiative gave an overview of their Carbon Asset Risk Discussion Framework.  The framework, which provides questions to ask but no answers, provides a structured approach to assess exposure to climate risk, valuate, and manage it.  Mercer has released a report on Investing in a Time of Climate Change that is meant to help investors assess their portfolios using four climate-risk factors to assess exposure under four possible climate scenarios.  Mercer’s approach is more user-friendly because it provides answers based on assumptions about how investments in certain sectors and regions will be impacted under specific scenarios.  However, given how much is unknown, this approach obviously requires making a lot of assumptions.  2 Degrees Investing Initiative has worked with UNEP Inquiry and CDC Climat Research to produce a review of various approaches to carbon risk assessment: Financial Risk and the Transition to a Low Carbon Economy.  The Bloomberg Carbon Risk Valuation Tool (available to Bloomberg subscribers) was also mentioned in passing. This meeting was focused on technical questions about how to assess climate risk in order to protect financial institutions and individual investors. However the speakers also alluded to the critical need to mobilize the influence of financial markets to accelerate action to mitigate climate change.   On this point, speaker after speaker emphasized the issue of the difference in time horizons for investment decisions and the major risks to investments from climate change.  Most investment decisions are made for 2-10 years, while these experts expect to see major impacts on investments from climate change only in 25-30 years.  In order to leverage the power of markets to address climate change something will have to change. Mirele B. Goldsmith is an environmental psychologist, program evaluator, and activist.  She is an expert in how to change human behavior – the key to solving environmental problems and building a sustainable future.  Mirele’s clients include community-based organizations, associations, and businesses, that are engaging employees, tenants, board members, and constituents, in saving energy, reducing waste, educating about sustainability, and advocating for change.  Mirele is a certified SSC Green Auditor and the principal of Green Strides Consulting.

Carbon Risk Assessment in the Financial Sector

The SSC Team August 4, 2015 Tags: , , Strategic Sustainability Consulting No comments

By: Mirele B. Goldsmith

How can financial institutions and individuals factor climate change into their decisions about investments?  This question was considered at a meeting hosted by Moody’s Investors Service on Paving the Road to Paris COP21: Discussing Carbon Risk Assessment Strategies on July 27, 2015.  (The list of speakers may be found here.)

Those of us focused on sustainability are well aware that over time climate change will impact every aspect of the economy.  The finance sector is facing this fact now that governments are beginning to introduce regulation requiring disclosure of the risks that climate change poses to investors. At the meeting there was a lot of talk about France, where legislation has just been proposed to require disclosure of climate risk.  China is also considering legislation.  The European Union already requires pension funds to consider climate risk.  The SEC requires that companies disclose material risks from climate change, although the speakers described this requirement as “toothless.” 

What risks could climate change pose to financial returns?   The most obvious risk is that companies will be impacted physically (operator risks) and investors will bear the costs. The risk that seems to be most on the minds of experts is changes in policy.  As one speaker put it, “it is becoming more expensive to pollute.”  Changes in technology which may make businesses obsolete or lead to falling prices are another risk.  And there are reputational risks.

Much of the meeting focused on just how the financial risks of climate change can be quantified.  The two big sources of uncertainty are first, that we don’t know how much and what kinds of actions will be taken to mitigate climate change.  And second, we don’t know how much the climate will change.  Risk projections are usually informed by past experience, but there is no historical data that can be used to build and test models of climate risk.

The speakers presented several tools that are designed to help investors at various levels incorporate climate into their risk assessments.  Speakers from the World Resources Institute and UNEP Finance Initiative gave an overview of their Carbon Asset Risk Discussion Framework.  The framework, which provides questions to ask but no answers, provides a structured approach to assess exposure to climate risk, valuate, and manage it.  Mercer has released a report on Investing in a Time of Climate Change that is meant to help investors assess their portfolios using four climate-risk factors to assess exposure under four possible climate scenarios.  Mercer’s approach is more user-friendly because it provides answers based on assumptions about how investments in certain sectors and regions will be impacted under specific scenarios.  However, given how much is unknown, this approach obviously requires making a lot of assumptions.  2 Degrees Investing Initiative has worked with UNEP Inquiry and CDC Climat Research to produce a review of various approaches to carbon risk assessment: Financial Risk and the Transition to a Low Carbon Economy.  The Bloomberg Carbon Risk Valuation Tool (available to Bloomberg subscribers) was also mentioned in passing.

This meeting was focused on technical questions about how to assess climate risk in order to protect financial institutions and individual investors. However the speakers also alluded to the critical need to mobilize the influence of financial markets to accelerate action to mitigate climate change.   On this point, speaker after speaker emphasized the issue of the difference in time horizons for investment decisions and the major risks to investments from climate change.  Most investment decisions are made for 2-10 years, while these experts expect to see major impacts on investments from climate change only in 25-30 years.  In order to leverage the power of markets to address climate change something will have to change.

Mirele B. Goldsmith is an environmental psychologist, program evaluator, and activist.  She is an expert in how to change human behavior – the key to solving environmental problems and building a sustainable future.  Mirele’s clients include community-based organizations, associations, and businesses, that are engaging employees, tenants, board members, and constituents, in saving energy, reducing waste, educating about sustainability, and advocating for change.  Mirele is a certified SSC Green Auditor and the principal of Green Strides Consulting.

Where Are Your Sustainability Blind Spots?

The SSC Team June 16, 2015 Tags: , , , , , , , , , , , , , , Strategic Sustainability Consulting No comments
Enjoy this article written by Jennifer Woofter that was featured on the 2Degrees website in 2013: The journey towards sustainability is a marathon--a race of a thousand steps. And whether you are on the first step or somewhere in the middle (since no one is close to the end, right?), it's likely that you have made some assumptions, used estimates, or put aside things that aren't working. That's not a bad thing -- in fact, to effectively move forward to attain such an ambitious goal you must deal with complexity and uncertainty. Otherwise, you will face "analysis paralysis". However, the risk of taking that approach is that by simplifying, focusing, and systematizing your sustainability efforts, you can inadvertently create blind spots--weaknesses that you don't know are there. Blind spots are a particularly challenging problem because it isn't easy to fix something if you don't even know that it's broken. John Dame and Jeffrey Gedmin offer Three Tips for Overcoming Your Blind Spots in Harvard Business Review. We've pulled their best quotes (in italics, below) and then added our own thoughts about how to apply their advice to sustainability practitioners.

Use a Devil's Advocate to Fight Confirmation Bias

Confirmation bias is a well-documented tendency for people to draw conclusions and interpret events in a way that conforms to previously held beliefs--leading to poorly reasoned decision-making based on incomplete information and judgments. (Wikipedia has a great write-up on the phenomenon here.) "When you have a theory about someone or something, test it. When you smell a contradiction – a thorny issue, an inconsistency or problem – go after it. Like the orchestral conductor, isolate it, drill deeper. When someone says – or you yourself intuit – 'that’s just an exception,' be sure it’s just that. Thoroughly examine the claim." Whether you are predisposed to believe that the CFO will never get on board with your sustainability plan, or that your fellow employees care deeply about sustainability, it's essential that you incorporate a way to test those assumptions before investing too much time and resources into a plan of action. Regularly sit down with executives to better understand their priorities and pressures. Survey employees to determine which sustainability issues are most important to them, and how they rank in comparison to other workplace concerns. Test your beliefs and predispositions. And then test some more. "Dealing with confirmation bias is about reining in your impulses and challenging your own assumptions. It’s difficult to stick to it day in and out. That’s why it’s important to have in your circle of advisers a brainy, tough-as-nails devil’s advocate who – perhaps annoyingly, but valuably – checks you constantly." If your team is big enough, incorporate a devil's advocate. If it's just you, set aside time in your schedule (or in your process) to wear the devil's advocate hat yourself. Ask questions like:
  • What are we missing?
  • What could go wrong?
  • What alternate approaches can we take?
  • What are the unintended consequences that might pop up?
Use the role of devil's advocate to surface objections that might arise from others on your team, discover better routes to success, and assess a wider range of program outcomes.

Keep a Journal to Combat Hindsight Bias

Hindsight bias is also called the "knew it all along" effect, and causes "extreme methodological problems while trying to analyze, understand, and interpret results" (Wikipedia). It makes us think that things are more predictable, simpler, and more straightforward than they really are. For a challenge as complex as sustainability, this is a major concern. Here’s one way to check hindsight bias: Keep a diary. And record minutes from important meetings...What becomes painfully clear is that we failed to predict much of anything – claims after the fact notwithstanding. While acting as a mechanism to keep us honest about our ability to forecast the future, a detailed journal provides an added bonus: additional insight into how we make decisions. Once you've been using a journal for at least several months, go back and review it to see what patterns emerge. (For example, you may find that your boss is always grumpy in October, or that you have a tendency to lose your temper after a big success.)

Hire a Diverse Staff to Eliminate Groupthink

Groupthink is is "a psychological phenomenon that occurs within a group of people, in which the desire for harmony or conformity in the group results in an incorrect or deviant decision-making outcome. Group members try to minimize conflict and reach a consensus decision without critical evaluation of alternative ideas or viewpoints, and by isolating themselves from outside influences." (Thanks, Wikipedia!) Fighting groupthink should start at the hiring stage. Look for people who share your basic values and purpose, but who are also tough, independent, and able to tell you what they think. Moreover: check that decisions at all levels in the company are being made on the basis of rationality, not merely flowing from authority or a tendency (however subconscious) to conform. While sustainability practitioners (in-house, or consultants) may not be in a position to control who is hired in a company, there are other ways to avoid groupthink. More importantly, make sure that you don't shut yourself off from people who don't see the world from your viewpoint. Just as many sustainability leaders bemoan the closed-minded and isolationist philosophies of climate-change deniers, we too can fall prey to "preaching to the choir" and focusing only on talking to other sustainability believers. This approach does NOT mean that you must engage and bring in people who are intentionally at loggerheads with you. But it is important to understand why people feel the way that they do, what motivates them, and what values you share with them. Take note- it not only applies to big topics (like global climate change), but also to more discrete topics (like how to approach the topic of Green IT for your next budget cycle). Make a point to intentionally solicit information from a wide variety of perspectives early on in your process--your ultimate success may depend on it. Looking for ways to become a better sustainability consultant? Check out our blog post that talks about 8 steps to improving as a sustainability consultant!