Month: August 2023

August 14, 2023 /3BL/ – As the California State Assembly returns this week to Sacramento for the end of the 2023 legislative proceedings, more than a dozen major companies are calling for lawmakers to finalize first-in-the-nation legislation that would require companies to provide standardized and consistent climate-related disclosures.

In the coming weeks, lawmakers are set to consider two key pieces of legislation that would provide consumers, investors, and other stakeholders with information about how companies are managing the financial risks and opportunities from climate change. SB 253 (authored by Sen. Scott Wiener) would require all large public and private companies operating in the state to report their greenhouse gas emissions across their operations and supply and value chains, while SB 261 (authored by Sen. Henry Stern) would require them to report on their climate-related financial risks.

While most large companies voluntarily disclose climate information already, these bills would provide a standardized and consistent template that would apply to companies operating in California, across the economy. Designed to meet the growing consumer and investor demand for information about companies’ risk management and sustainability plans, the legislation has also won the support of leading businesses who see an opportunity to demonstrate their leadership to those stakeholders while helping them measure their own progress toward achieving their goals.

“We believe businesses have a responsibility to use not just their voices, but their operations to ensure the long-term health of our planet. We must develop new and innovative models to decouple economic growth from environmental impact while freely sharing our findings along the way. We must empower our employees, members, customers, and communities to support this transition. And we must demand that our government does the same,” said Matthew Thurston, divisional vice president, sustainability, REI Co-op. “Legislation such as SB 253 and SB 261 provide the necessary transparency for businesses to account for their carbon emissions and climate risks, a key step towards enabling them to measure, verify, and achieve their climate targets.”

“Decarbonization in the corporate sector should be an urgent priority given the growing risks posed by climate change,” said Stuart Landesberg, CEO, Grove Collaborative. “Without scope 1-3 GHG emissions disclosures, the full picture of corporate climate emissions and climate risks remains fragmented, incomplete, and unverified—making demands for action difficult to understand and follow through on. SB 253 and SB 261 provide a foundation for meaningful climate action, which is why Grove Collaborative proudly supports these critical steps towards corporate decarbonization, required to meet our net zero emissions by 2030 goal.”

Corporate support for the legislation has been growing this year. More than a dozen companies have submitted a letter to lawmakers in support of SB 253: Microsoft, IKEA USA, Sierra Nevada Brewing Co., Patagonia, Adobe, Avocado Green Brands, Dignity Health, Grove Collaborative, REI Co-Op, Everlane, Eileen Fisher, Recology, Atlassian, and Seventh Generation. In a separate letter, 12 companies signed in support of SB 261: Microsoft, VF Corp., Patagonia, REI Co-Op, Sierra Nevada, Alter Eco, DSM North America, Seventh Generation, Grove Collaborative, Avocado Green Brands, Atlassian, and Everlane.

Consumers and investors alike have been making their desire for climate disclosure increasingly clear in recent years. According to a recent survey, 85% of Americans said companies should disclose more about the impact of their business practices on society, and 87% support mandatory climate disclosure. And in 2022, more than 500 investors representing nearly $40 trillion in assets under management called for governments around the world to strengthen climate disclosure standards, such as by requiring mandatory reporting.

After a previous version of SB 253 failed to pass by a single vote in 2022, both bills have already been approved this year by the state Senate and are expected to come up for a vote in the Assembly before the end of the legislative session.

If passed, the bills would create the first broad-based climate disclosure policy in the U.S., with SB 253 applying to more than 5,300 companies and SB 261 covering more than 10,000 companies — reflecting California’s position as the world’s fifth-largest economy. The legislation would complement the IFRS’s International Sustainability Standards Board disclosure standards, the EU’s Corporate Sustainability Reporting Directive, and the federal disclosure rule soon to be finalized by the U.S. Securities and Exchange Commission, because it would provide transparency into how both public and private companies are managing material climate-related financial risks and opportunities.

“The disclosure of corporate financial risks is a normal business function, which is why policymakers around the world are sensibly applying it to the considerable business and economic threats of climate change,” said Alli Gold Roberts, senior director of state policy, Ceres. “Leading companies see the benefits of these policies, which help them attract investment, inform consumers, and measure their own progress toward their goals. Ceres and the companies and investors we work with urge the State Assembly to finalize SB 253 and SB 261 this year, positioning California once again as a national economic leader by bringing standardized and consistent climate disclosure requirements to the U.S.”

Ceres will join a rally at the Sacramento Capitol on Aug. 23 at 1 p.m. to demonstrate broad, cross-sectoral support for both SB 253 and SB 261. Notable participants include the bill authors, Sens. Wiener and Stern, as well as Assembly Member Tasha Boerner and other supporters of the legislation, such as Patagonia, California Environmental Voters, and the Greenlining Institute, among others.

About Ceres

Ceres is a nonprofit organization working with the most influential capital market leaders to solve the world’s greatest sustainability challenges. Through our powerful networks and global collaborations of investors, companies and nonprofits, we drive action and inspire equitable market-based and policy solutions throughout the economy to build a just and sustainable future. For more information, visit ceres.org and follow @CeresNews.

Media Contact: Helen Booth-Tobin, booth-tobin@ceres.org, 617-247-0700 ext. 214

Buildings account for at least 39% of energy-related global carbon emissions annually, and a significant portion of these emissions result from embodied carbon associated with building materials and construction. It has become evident that a change in the way we plan and manage our built environment is crucial to addressing climate change and sustainability challenges.

Forward-thinking businesses are embracing construction circularity as a strategic approach to reduce their dependence on scarce raw materials and minimize waste generation.

Let’s take a closer look at construction circularity and the many benefits it offers both businesses and the environment.

What Is Construction Circularity?

Construction circularity is an approach that focuses on reusing, recycling, and renewing materials and resources throughout a building’s life cycle. It creates a closed-loop system where waste is minimized and materials are continually reintegrated into the construction process.

The construction circularity movement has emerged as a means for the construction industry to engage in more sustainable and resource-efficient practices.

For more in-depth discussion on this topic make sure to join our webinar on Building Materials Circularity from our Global Remediation Working Group on September 7, Register Here!

What Are the Fundamental Principles of Construction Circularity?

These guiding principles of construction circularity help those in both the construction and demolition industries maintain a closed loop.

Design for deconstruction: Buildings are designed with the idea that they will be disassembled or deconstructed in the future. This means using modular and easily separable components.Mindful demolition: Instead of disposing of building materials as waste, efforts are made to salvage and reuse them in new construction projects.Resource efficiency: Construction circularity encourages using fewer resources and choosing materials with a lower environmental impact, such as green building materials. This reduces the need for raw materials and lowers overall waste generation.Extended lifespan: Buildings are constructed to be durable and long-lasting, minimizing the need for frequent replacements and renovations.Circular business models: This strategy involves adopting business models that support the recovery and reuse of building materials. It may include rental, leasing, or buyback arrangements for certain materials.

Construction Circularity in Action

Let’s take a look at how construction circularity works with one of the world’s most commonly used and recycled synthetic materials: concrete.

Responsible material sourcing

In the first stage, sustainable practices are applied when sourcing concrete for construction. Alternative cementitious materials, such as fly ash or slag – the byproducts of other industrial processes – can be used, reducing the demand for raw materials.

Mindful demolition

At the end of the building’s life cycle, the structure is carefully dismantled and concrete is salvaged for reuse or recycling. The concrete is crushed into aggregate.

Design for disassembly

During the design phase of a new building, architects and engineers implement strategies for easy disassembly. Modular construction techniques are adopted, allowing for individual components, including concrete elements, to be easily separated and reused in future projects.

Material reuse

The recycled concrete aggregate from the previous demolition is incorporated into the new construction project, extending its life and reducing the embodied carbon footprint of the building.

End-of-life recycling

When this new structure reaches the end of its life, any remaining concrete is carefully dismantled and sent for recycling. The recycled concrete is then used again in the construction of new buildings, completing the circularity loop.

Benefits of Construction Circularity

Reduced greenhouse gas emissions. Manufacturing new building materials has a significant carbon footprint. Adopting construction circularity and reusing materials can substantially mitigate these negative environmental impacts.Improved ESG performance. Embracing material reuse not only helps combat climate change but also aligns with your environmental, social, and governance-related sustainability goals, showcasing your commitment to a greener and more environmentally responsible business.Conservation of raw materials. The extraction of raw materials puts immense strain on natural resources and ecosystems, leading to habitat destruction and biodiversity loss. Circular practices minimize the demand for virgin materials, promoting sustainable resource management and reducing the environmental footprint of your projects.Decrease overall waste generation. The construction industry generates an astonishing amount of waste, contributing significantly to environmental impact. Adopting sustainable strategies contributes to a greener and more efficient construction process.Reduce hazardous materials in the environment. Proper demolition techniques and material reuse play a vital role in minimizing the release of hazardous substances into the environment.Avoid fines and fees for improper disposal. Improper waste disposal can lead to severe legal and financial repercussions for businesses. However, by implementing mindful demolition and material reuse, you can steer clear of these penalties.

A Winning Strategy for Sustainable Building Practices

With decreased reliance on costly new materials and reduced waste disposal expenses, companies can achieve greater operational efficiency and bolster their bottom line. Embracing construction circularity through mindful demolition and thoughtful design not only contributes to a more sustainable future but also provides tangible benefits for businesses.

You can view more on the Benefits of Green Building in this previous blog. 

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Regulations regarding plastic waste are expanding at a dizzying pace. The United Kingdom established plastic taxes in 2022, followed by Spain in 2023. The United States is intensifying its regulatory efforts, with more than 100 extended producer responsibility (EPR) laws implemented to date.

Meanwhile, in its quest to make all packaging reusable or recyclable by 2030, the United Nations is preparing to launch a plastic treaty in 2024. At the same time, businesses themselves are furthering their commitment to sustainable practices through voluntary agreements, such as those proposed by the Ellen MacArthur Foundation and the United Nations Environment Program (UNEP).

Consumers are taking up the issue as well. According to UNEP, 91% of consumers express concern over plastic waste. A study by Trivium Packaging and Boston Consulting Group indicates that 73% are willing to spend more for eco-friendly packaging.

Compliance with these new regulations can be a challenging and expensive task for businesses of all sizes. Many smaller to mid-range organizations lack in-house expertise on these issues, often resulting in either rudimentary monitoring or expensive outsourcing. Larger companies may find the immense scale of the task daunting and default to costly shortcuts.

“With the complexity that they face and the sheer volume of business they have across multiple products and multiple countries, many organizations tend to be conservative to avoid fines,” explains Darren West, product expert for Circular Economy Solutions at SAP. “As a result, they will more or less approximate what taxes they need to pay, and overestimate to add in some contingency.”

Driving Up Accuracy, Driving Down Costs

For consumer goods giant Henkel, the quest for an effective solution to its plastic waste challenge began in its tax department. Triggered by the advent of plastic taxes across the UK and EU, Henkel’s tax experts embarked on a project aimed at addressing compliance from a fiscal perspective.

On the IT side, the team was immediately faced with some significant hurdles. First, to comply with new regulations and avoid penalties, it needed a system that could monitor, measure, and report its products’ plastic data. Amidst a limited market of solutions, finding the right tool for its needs was no easy task – one made more difficult due to the newness of the regulations. And it needed to aggregate and organize the essential master data for accurate reporting without excessively complicating or inflating the cost of its IT infrastructure.

SAP Responsible Design and Production was born out of a desire for a more dynamic approach to plastic waste. The solution can supply teams with a streamlined, granular data management system to help facilitate the monitoring, measuring, and reporting related to the environmental impact of production and packaging.

Today, the SAP Responsible Design and Production solution assists operations such as Henkel’s in navigating the labyrinth of product and packaging composition. Handling the details of primary, secondary, and tertiary packaging, as well as transport packaging throughout the supply chain, requires a meticulous approach. The solution offers a digital model of the larger packaging and product landscape, helping facilitate a thorough and accurate impact analysis.

To encapsulate the complexity of the packaging process, the solution can capture precise data on material flows and circularity attributes. It can also assist teams in recording the weights, volumes, and shipment information as well as important details regarding recycled content, import/export information, and the various packaging components. This precision is crucial for calculating plastic taxes as well as EPR fees, which demand exceptional accuracy and knowledge of detailed material flows within a country and across borders.

In the future, SAP plans to extend the solution to help track and monitor the recyclability, reusability, and embedded CO2 of various materials. Such data is essential for organizations seeking to comprehend their scope 3 emissions across their entire packaging portfolio and to make their packaging more sustainable.

The solution helps provide results that businesses can stand behind, saving time and money and decreasing complexity – particularly when it comes to new markets. If an enterprise is based in one country, such as Belgium or the Netherlands, and is looking to expand, say, to France and Italy – which each have their own distinct systems and rules to govern packaging – the complexity of data management increases. With SAP Responsible Design and Production, material, packaging, and transportation data can be tailored for new market expansions without repeating the same processes.

But the real beauty lies in the solution’s ability to adapt once the data is integrated. It can seamlessly adjust to different market requirements, working to enable straightforward report generation for tax and EPR compliance at the click of a button.

“What we’re talking about here is simplicity,” says West.

Redesigning a More Sustainable Future

Data and insights are just the start. The real challenge is translating this information into action.

Beyond supporting businesses in fulfilling operational obligations such as paying plastic taxes and accurately calculating EPR fees, the solution can enable informed strategic decisions. By offering insights into the impact of material choices and compositions, it helps empower businesses to embrace sustainable and responsible packaging solutions and business models.

After working with SAP Responsible Design and Production, Henkel was able to meet its fundamental obligations more efficiently, gaining better insight into its data. These new capabilities have delivered far more than short-term efficiencies. They’ve spotlighted Henkel’s ongoing efforts to reduce its environmental footprint, adding a new dimension to its green leadership in the industry.

“One of the greatest things about this solution is what it does for an organization like Henkel,” says Stephen Jamieson, global head of Circular Economy Solutions at SAP. “Namely, allowing it to evidence the good work it is already doing very effectively.”

Henkel’s initiative with SAP Responsible Design and Production dovetails well with a related Henkel initiative to strengthen supplier communication, collect more data, and enrich its sustainability database.

These efforts equip Henkel’s teams to pinpoint the products with the highest plastic tax load. These insights could soon guide strategic product redesign, potentially leading to significant cost savings. Moreover, by laying a solid foundation in regions such as Spain and the UK, Henkel is preparing itself to adapt to regulatory changes across markets.

The Road Ahead

As the global economy begins to look towards a more circular model, SAP Responsible Design and Production is innovating in stride. Recognizing that businesses interact with diverse material types, the solution will expand in the future to accommodate elements such as food, land use, textiles, batteries, waste electronics, and more – all cornerstones of the circular economy – measuring key factors such as virgin materials, recycled content, embedded CO2, and renewable content.

At its core, SAP Responsible Design and Production aims to assist organizations in actualizing their circular economy vision – eliminating waste, promoting material circulation, and rejuvenating natural systems. The solution is engineered to integrate smoothly with essential business processes and systems, empowering businesses to implement their sustainability strategies with more precision and efficacy. Whether it’s incorporating cost calculations into invoice procedures or integrating with other solutions to create a more holistic approach to sustainable practices overall, SAP Responsible Design and Production can assist teams in transforming their business operations.

“At Henkel, we are committed to leadership in plastics reduction and offering greener options for our customers,” says Dr. Nora Mundschenk, corporate director, Finance Tax and Trade Group, Henkel AG & Co. KGaA. “SAP Responsible Design and Production and SAP Services and Support are going to help us do that.”

For more information on how SAP helps companies record, report, and act on their sustainability goals, visit www.sap.com/sustainability.

JACKSONVILLE, Fla., August 14, 2023 /3BL/ – Thanks to efforts by prominent Black social impact developers Pastor Clinton Bush and his brother, Anthony B. Miles, the Preventative Health Hub® concept is coming to Jacksonville’s downtown and urban core. The longtime Jacksonville residents are co-architects of this innovative compact master plan development approach to community health, which they have recently pioneered in Philadelphia. Healthy and sustainable workforce multifamily housing units for service workers and independent 55+ fully furnished senior residences will anchor the Jacksonville hub.

“The Preventative Health Hub® introduces new workforce and senior housing options into downtown and the urban core, providing healthcare workers, first responders, police officers, fire department employees and teachers affordable places to live that provide them an opportunity to be more fully integrated into the communities they serve,” said Pastor Bush, whose long service to the Jacksonville community has given him a unique perspective on just how much return on impact this approach can have on a community’s overall health and its sense of purpose and pride.

“I saw the importance of this kind of community investment when, 18 years ago, Anthony and I founded then ran City Kidz Ice Cream Cafe, which incorporated a food science education laboratory that has been held up as a national model,” he continued. “Now we want to put this kind of social impact investment to work at a much larger scale.”

Healthy, sustainable development 

“Can you imagine the behemoth benefits for our workforce, our healthcare systems, our business sector, our residents and our communities if we expand the city’s affordable housing infrastructure in a way that is healthier for both the people and the planet?” said Pastor Bush. “Building healthy, sustainable communities from the ground up and from the inside out is an investment that will have an outsized social impact that will directly benefit our city’s residents, large and small businesses, and the public sector. But it will also add to Jacksonville’s growing reputation as a healthcare hub, increase its contributions as an economic development engine for the state, and serve as a national model for how to approach community development going forward.”

Pastor Bush noted that the new construction will use the latest innovations in sustainable building materials, including Thermasteel panels and CLT or hybrid mass timber products. The goal is to substantially minimize the use of steel and concrete for the buildings, because those materials significantly increase the embodied carbon of a project — by up to 75% in some cases, according to a recent article in Architects Journal.

Using far less concrete than is typical in projects of this type helps balance the environmental impact when concrete is the only option, such as roads, tunnels and storm water drainage, and building that infrastructure is equally important to Jacksonville’s growth agenda.

“Building more sustainably is a critical part of how we address climate change,” said Pastor Bush, “and striving for decarbonization through our building practices is where developers can make a significant contribution. But prioritizing the health of the planet is only part of the equation. We also must prioritize the health of the people who will live in the Preventative Health Hub®, because the places and spaces where we live our lives are fundamental parts of the public health toolkit that keep us healthy, happy and productive.”

Pastor Bush said that the importance of quality indoor air was one of the great lessons of the pandemic, and leading-edge air filtration and circulation systems will be at the core of the new residences, with an inline air purification in the HVAC system from Delos, which has pioneered a suite of other science-backed innovative healthcare technologies, such as circadian lighting and enhanced water filtration options.

“We’re also designing the buildings to achieve WELL Certification from the International WELL Building Institute, using its evidence-based strategies to deliver cleaner air and water, better lighting and enhanced thermal comfort in every building,” he said. “We’re excited to get started.”

“We’re strongly encouraged by the interest in our two hubs that are underway in Philadelphia,” said Miles, who formerly served in the U.S. Navy, and whose own experience dealing with a service-related disability opened his eyes to the profound need for bringing the pieces of community health and wellness together. Like Jacksonville, the hubs are anchored by mixed income apartments and condos, with lottery set-asides for healthcare workers, police officers, teachers, firefighters and city workers, with special accommodations for seniors. Miles noted that a 18,629-square-foot dress and safety eyewear ophthalmic manufacturing facility and a 142,000-square-foot state of the art health services facility are also part of the Philadelphia hub, which is in the Tioga neighborhood adjacent to Temple University Health Sciences Campus. All buildings will seek WELL Certification and the entire footprint plans to pursue certification as a WELL Community.

“Locating in federally funded Opportunity Zones helps boost investment and equitable development outcomes, including job creation and business growth,” Miles continued. He noted the Tioga project had also received a $750,000 Redevelopment Assistance Capital Program (RACP) grant from State of Pennsylvania and a $500,000 Neighborhood Economic Development (NED) grant from City of Philadelphia Department of Commerce.

“We believe the way to address large-scale social and economic challenges is to lead by example and make sure our investments drive positive social performance across health, sustainability and equity,” Pastor Bush continued. “Now that we’ve worked out the details so we can rapidly scale this unique urban real estate approach, we’re excited to bring our Preventative Health Hub® to Jacksonville and be part of the effort solve some of the city’s workforce and affordable housing needs. We look forward to opportunities to work with the city and other Jacksonville civic and business leaders and any of the health systems that are interested in our Preventative Health Hub® concept.”

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For more information:
Matt Serra
mserra@mulberrymc.com
(773) 817-3106