Joining the responsibility revolution

This week we met Jeff Hollender, a successful and inspiring leader who is currently building support for the American Sustainable Business Council. It was interesting to hear about Jeff’s thoughts on the ASBC’s role in giving voice to all the small businesses who want Congress to act on the climate bill and other important issues; the latest round of corporate malpractice and malfeasance; and what it takes to be a truly regenerative business.

Tourism in a recession

Talk of the recession, frozen credit, and home foreclosures seems to dominate the airwaves these days. So it's natural to think that tourism, one of modern life's great indulgences, might be jettisoned quickly by consumers worried about the long-term health of the global economy, not to mention their own finances. After all, staycations can be enticing when money is tight.

Yet many economists and decision-makers, including tourism experts at the United Nations, herald tourism as an essential part of the economic recovery. Tourism is the world's largest industry in terms of jobs, especially for young people, women and other new entrants into the job market.

And many experts are arguing for increased support of tourism, an important source of international trade, in the various stimulus packages being developed around the world. Tourism even got some consideration at the recent G20 meetings in London.

One of the biggest headlines from G20 was the rich nations' decision to provide $1.1 trillion (via the IMF) in loans and financial guarantees. This credit is intended primarily for developing countries, citing the developing world as the key to the global recovery. Since tourism is a pillar of so many Latin American countries, tourism reasonably will figure into the economic recovery.

Tourism is also linked to climate change, so the best investments in tourism must effectively deal with the potential downsides of future development. For our team, that means smart siting, design and construction decisions in resort and infrastructure development, as well as a keen eye toward the negative impacts of land use change, which is especially important in tropical countries. Not to mention that the aesthetic beauty and other natural assets are what draw tourists in the first place.

Reduced green business travel in recession

February 11, 2009

Green Business Travel At Risk In The Recession

Companies are still committed to a Corporate Social Responsibility platform, but certain aspects of CSR, such as “green” forms of business travel, are beginning to suffer in the recession as organizations prioritize cost-saving over supporting sustainable travel, according to the latest opinion poll by the Association of Corporate Travel Executives and KDS.

The study of 329 travel managers and business travelers from around the world found that 61 percent of organizations now have a CSR charter, compared with 59 percent in 2008. Moreover, almost 30 percent of corporate travel departments are required to report carbon emissions performance to management.

However, the survey also found that this commitment to CSR does not translate into greener travel choices, which are often more expensive. Almost 80 percent of companies rated cost-cutting as the top business travel concern, while environmentally sustainable travel is a high priority for only 17 percent.

As viewed in Environmental Leader on February 12th, 2009

http://www.environmentalleader.com/2009/02/11/green-business-travel-at-risk-in-the-recession/

Can sustainability help in the financial crisis?

February 11, 2009

Sustainable Companies Outperform Peers During Financial Crisis

A.T. Kearney announced findings in a new report which showed that companies focused on sustainability outperformed their peers by 15% during the financial crisis.

The report, titled “Green Winners: The Performance of Sustainability-focused Companies in the Financial Crisis” looked at 99 companies with a strong commitment to sustainability as defined by the Sustainability Index and the Goldman Sachs Sustain Focus List.

Over the six months from May through November 2008, the study found that in 16 of the 18 industries studied, companies committed to sustainability averaged $650 million more than the industry average in protected market capitalization per company.

Dr. Daniel Mahler, author of the study, said, “We find common characteristics among the leading companies that show that sustainability goes far beyond the narrow definition of being environmentally friendly.”

These characteristics include:

• A focus on long-term strategy, not just short-term gains
• Strong corporate governance
• Sound risk-management practices

The firm released a study in 2007 revealing that while 60% of companies have sustainability strategies, only 36% have applied it to their supply chain. EL has reported in the past on A.T. Kearney’s ‘carbon-neutral consulting.’

As viewed in Environmental Leader on February 12th

http://www.environmentalleader.com/2009/02/11/sustainable-companies-outperform-peers-during-financial-crisis/