Month: August 2023

A new economic reality has arrived. It came how they often do—gradually, then all at once. Leaders who’d gone all in on rapid growth are downshifting to focus on short-term viability.

All the sudden, quarterly financial goals loom larger. Long-term projects slide to the back burner.

Unfortunately, this atmosphere puts corporate social responsibility programs (CSR) at risk. But abandoning CSR when the market gets volatile is like tossing your compass overboard when a storm blows in.

The truth is: markets might be changing, but expectations are not. All the reasons a CSR program made good business sense last year are even more valid now. Both consumers and employees have high expectations when it comes to social impact, with more than 70% of consumers interested in how brands are addressing social and environmental issues and 60% of employees choosing where they work based on their values. And they are all watching to see how brands respond to the current market.

Plus as the recent report from Deloitte highlights, environmental and ethics regulations continue to add pressure.

If anything, this is not the time to abandon your CSR mission. It’s time to double down. Because you don’t change course when the seas get rough. You get more strategic. Here’s how.

Respond to reality, not headlines

It’s true that the market is shifting for many high-growth, high-profile companies, but the headlines don’t tell the whole story. There are a whole lot of businesses still quietly growing and innovating—they’re just not on the front page right now.

As with much public storytelling, the loudest voices are the ones that make sweeping, dramatic proclamations about where things are headed. Look at the recent conversations around quiet quitting and the shift to remote work. For a while, everywhere you looked, someone was making a new exaggerated claim about the future of work. Reality tends to be more nuanced than headlines would suggest.

Right now, the sky may be cloudy, but it’s not falling.

It’s also important to understand the long arc of social progress. Equity, diversity, justice, and sustainability are not achievable as quarterly goals. They take a sustained, coordinated effort. Candidly, if our commitment to making meaningful change wavers every time the market dips, we don’t stand much of a chance.

Strengthen the ties between CSR and business objectives

In the same way that a volatile market can expose the cracks in a business strategy, these fluctuations also provide a stress test for your CSR strategy.

If company leaders have been treating CSR programs like pet projects, that has to change now. Corporate purpose is an essential business initiative. It needs to be planned and resourced as such.

To be effective, CSR programs need to be strategically integrated with other business initiatives. If you haven’t already, now is the time to tie your CSR mission clearly to business goals.

For example, Splunk, a data company, focuses a good portion of their CSR work on bridging the data divide—the gap between those who have access to the internet, computers, and technical skills, and those who don’t. The mission is a natural extension of their business strategy and it leverages their greatest strengths as an organization.

As part of the Impact Studio Conference, Patricia Toothman, the social impact manager at Splunk, talked about linking the pillars that support business and social impact work: “Connecting all of those pillars and really working towards our overall mission of bridging the data divide, that’s our new BHAG—our Big, Hairy, Audacious Goal. And that’s our North Star as we’re evolving, iterating, and creating new programs.”

As you advocate for your programs, be sure to connect them to your own North Star. And make an effort to explicitly tie your work to broader company objectives such as:

Employee satisfactionBrand loyaltyRetentionProfessional developmentCustomer engagementStrategic partnershipsRevenue

Measure the full value of your CSR programs

In times like this, it’s easy to get locked in on the black/red dichotomy of money in/money out. When it comes to measuring the true value of your social impact programs, don’t get stuck here.

Look at the full range of outcomes that your program contributes to. Alongside the internal outcomes around company culture and employee engagement, the impact of your programs extends into the community. In 2021, corporate giving accounted for over $21 billion of support for charitable causes.

In the past, the effect on communities was considered more a feel-good aspect of CSR. But recent events have reminded all of us how interconnected community and business are. Larry Fink’s letter is proof that the most successful corporate leaders are the ones who understand the full ecosystem that their business exists within. In reality, when the community thrives, businesses do too.

CSR and ESG initiatives also help your business future proof. Rather than reacting to new social and environmental regulations as they happen, you’ll be proactively planning for them. In the long run, a gradual, intentional approach to these changes is good for everyone. Even investors are prioritizing ESG compliance.

Kari Niedfeldt-Thomas, managing director of corporate insights & engagement for CECP, explains how CSR can help you future proof this way: “Companies for generations were focused around what shareholders wanted. And shareholders sometimes were only concerned about the short term. They wanted to be able in the short term see a company increase their profits to a point, see the stock go up so they could sell. They weren’t there for a long-term model. Yes, maybe the company is meeting all minimum regulatory standards, but they’re not necessarily looking at a net-zero future of where the market is potentially headed and where they have to be prepared to operate as a business when the rules might change.”

When company leaders cut CSR programs, they are sometimes focused on the operational costs they’ll save. But you have to take into consideration the costs and the damage to the brand and the community. Revealing your company to be a fair weather ally is a particularly bad look. Plus, if market forces are impacting your business, odds are nonprofits and community members are feeling the squeeze too. Pulling back support now will be extremely destabilizing.

Setting up the infrastructure and partnerships to support your CSR work and then dismantling them can be like taking one step forward, then two steps back.

Find opportunities to innovate

It’s true that the current economic pressure might force you to shift how you provide support to community organizations. It’s time to think outside the box. If you don’t have the resources to fund the same level of grants or donations you’ve done in the past, consider other avenues of giving such as:

Employee giving & matching: Set up a fundraising campaign to encourage employees to donate.Volunteering: Organize volunteer events to give nonprofits additional capacity.In-kind donations: Donate your products or services directly to a nonprofit.Marketing & advocacy: Use your platform to spread the word about an organization and its cause.

As much as this moment tests your commitment to social impact, it will also reveal a lot about your relationships with your nonprofit partners. Do you know what they need? Or do you at least know how to ask what they need?

If you’ve just been writing checks, now is the time to pivot and start building a deeper relationship. Think of the organizations you work with as true partners. Invest time in seeking their feedback and learning how you can better support their work.

This moment also calls for efficiency. Teams will be doing more with less. Case and point: many DEI teams are being cut, but if you look closely, many companies are not backing off their DEI goals. Do everything you can to streamline and centralize your CSR processes to put your team in the best position to deliver results.

Come out stronger on the other side

Like many moments of adversity, this is a chance for your team to weather the storm and come out stronger and wiser on the other side.

As belts tighten and business leaders get even more obsessive about ROI, there’s intense pressure for CSR professionals to make programs as compelling as possible. Now is the time to shore up your strategy.

The big upside of this pressure? Leveraged in the right way, this intensity can shape your social impact programs to be more effective, more efficient, and more ingrained with your business.

For those in the business of social impact, there may be a storm to weather, but the future is bright.

Originally published on Avantor Sustainability

Building Diversity at Avantor

To encourage our associates to learn from each other, broaden their perspectives, generate respect, and accelerate acceptance, Avantor has a robust DE&I strategy and leadership diversity goals. We are incredibly proud of the communities established for our associates to gather, celebrate, share and learn. In fact, we saw 72% growth in DE&I discussion participation at Avantor in 2022, including 42% participation growth amongst Europe- and Asia-based associates.

Associate Centric Teams (ACTs)

Avantor introduced Associate-Centric Teams (ACTs) in 2020 to provide our global associate population with opportunities to learn and deepen their understanding of others’ lived experiences and perspectives. Our ACTs, which are sponsored by Executive Leadership Team members and supported by active participation from leaders across the organization, aim to elevate the voices of Avantor associates, highlight concerns of the community, create programs and initiatives to support allies, foster awareness, and further promote respect and inclusion in the workplace.

With the addition of three new ACTs in 2022, Avantor now has eight active employee groups: Global Black ACT, Diverse Abilities ACT, PRIDE Network ACT, Women in Business ACT, VETS ACT, ALMA ACT (Avantor Latinos Moving Ahead), New Professionals ACT, and Pan Asian Middle East ACT. Before establishing a new ACT, interested associates discuss their ideas with our DE&I leadership to ensure we are best reflecting our associate population. In total, our eight ACTs engaged more than 3,100 associates in 2022 – a 50% growth over the prior year.

Supporting this growth is our ACT Toolkit and Event Guidelines Resource Guide launched in 2022 to further align events planning and best practices to encourage ACT participation across our global workforce.

In 2022, Avantor’s ACTs held a variety of high-quality events throughout the year reflecting the diverse interests of the groups, including:

Virtual guest speakers Christy Martin, Garrard Conley, Dr. Bal Pawa, Kara Goldin, and Timothy Shriver offered insights and discussion on DE&I issues through their personal experiences. 
 Celebrations recognizing Women’s History Month, Black History Month, and PRIDE Month, such as PRIDE parades and desk decorating contests. 
 Continuation of safe space conversations addressing associate concerns uniquely affecting their communities, facilitating space for associates to share and process emotions with those of shared identities.

Expanding Avantor’s ACT Mentorship Program 

Since its pilot launch in 2021, the ACT Mentorship program has provided associates with meaningful career growth and networking opportunities aligned with their professional goals. Topics such as skill development, personal effectiveness, business knowledge, and talent management are common discussion themes in many mentor/mentee interactions. As a global enterprise, these interactions have helped advance our culture of inclusivity and connectedness while fostering a workplace that values learning, development, collaboration and respect.

Continuing this momentum, in 2022 the ACT Mentorship Program was expanded to offer participation for all Avantor ACT members and allies. Productive mentor/mentee interactions are supported by training resources available through Avantor’s on-demand learning library, offering lessons dedicated to the subject.

“Being a part of the ALMA ACT gives me the opportunity to highlight the Latinos of Avantor and supporting them in their careers here and ensuring they know they are welcomed and appreciated by the business.”

– Alicia Morales, Marketing chair for ALMA and Talent Acquisition Partner, Americas

Productive mentor/mentee interactions are supported by training resources available through Avantor’s on-demand learning library, offering lessons dedicated to the subject.

Unconscious Bias Awareness & Actions

At Avantor, we also continuously examine our existing systems to remove any bias and expand our benefits coverage to support all associates adequately. As a result of this focus, we further aligned to the Human Rights Campaign Foundation Corporate Equality Index, including updating the Avantor Code of Ethics, and expanding benefits coverage for family events such as adoption services as well as gender affirmation services in our self-insured medical plans. We also enhanced our holiday schedule to include Martin Luther King Jr. Day as a paid holiday.

“For me, ACT means a positive and inclusive work environment for all associates regardless of their background or identity. As a member of ACTs, I feel valued, motivated and empowered. 
I also enjoy working with other ACT Allies who are very supportive, collaborative and respectful.”

– Barkath Neesa, Personal Development Chair Pan Asian Middle Eastern ACT

Avantor Signs Human Rights Campaign Statement Opposing Anti-LGBTQ Legislation

As part of our commitment to support diversity and a culture of belonging, we are proud to announce Avantor has signed the Human Rights Campaign (HRC) Business Statement Opposing Anti-LGBTQ Legislation. Respect is one of our iCARE values, emphasizing treating others with dignity by seeking to understand each other’s experiences and celebrating our diverse backgrounds and perspectives. In signing the HRC Business Statement, we aim to ensure the safety and well-being of LGBTQ associates and individuals where we live, work, and conduct business.

We are also expanding our collaboration with HRC to:

Establish benchmarking of inclusion best practices for LGBTQ community members in our policies and programs. 
 Leverage the Transgender Inclusion in the Workplace Toolkit, to support transitioning associates. 
 Participate in the 2023 HRC Corporate Equality Index, a rating criterion to help businesses understand best practices as well as resources to support process and policy improvement.

We recognize the members and allies of Avantor’s PRIDE Network ACT for their efforts to raise awareness of the Human Rights Campaign commitment, and for their continued dedication to create positive impact for all community members, both externally and internally at Avantor.

To learn more, download the Avantor 2023 Science for Goodness Sustainability Report here.

The KeyBank Foundation has awarded Michigan Ability Partners (MAP) a $175,000 grant. The funds will support the organization’s Permanent Supportive Housing services.

The grant dollars from the KeyBank Foundation will allow MAP to place 15 additional participants into permanent housing the first year, decreasing the homeless population, and to annually support 30 participants to maintain housing – preventing eviction.

Under the Permanent Supportive Housing program, MAP offers subsidized rent and long-term case management services for the chronically homeless. The organization owns and operates seven properties and continues to develop affordable housing. Participants eligible for this program are homeless, low-income and have a documented disability. Thanks to the efforts, 97% of participants remain stably housed.

“I am so grateful for the partnership with the KeyBank Foundation and their investment in helping MAP assist our most vulnerable community members in obtaining and maintaining affordable housing,” said Jan Little, CEO of MAP. “We believe that housing is a human right and we’re thrilled this grant will allow us to assist additional people.”

Since 1985 MAP has been creating pathways to stability for Veterans and opportunities for persons living with disabilities in southeast Michigan. Each year the non-profit agency assists close to 1,300 people who are homeless and in search of affordable housing, employment opportunities and needing financial stability. All services are aimed at assisting people to maximize their ability to live a fulfilling, productive, life in their community.

“At Key, we believe all individuals should have access to safe and affordable housing,” said Dave Mannarino, KeyBank’s Michigan Market President. “We’re incredibly proud to support the mission of Michigan Ability Partners and the work their staff is doing to ensure our most vulnerable neighbors can achieve their goals and dreams.”

Since 2017, KeyBank has made community investments supporting low to moderate income individuals and neighborhoods totaling more than $259 million in Michigan. This involves lending for affordable housing, small businesses, mortgage and home improvements as well as transformative philanthropy.

Originally published on bloomberg.com

At Bloomberg, we’re working hard to support the transition to a low-carbon economy. This includes our efforts through BloombergNEF (BNEF), a strategic research provider covering global commodity markets and the disruptive technologies driving the transition to a low-carbon economy. Our expert coverage assesses pathways for the power, transport, industry, buildings and agriculture sectors to adapt to the energy transition. We help commodity trading, corporate strategy, finance, and policy professionals navigate change and generate opportunities.

Here, three Tokyo-based employees tell us more about what it’s like working at BloombergNEF and what they enjoy most about their roles.

Olympe Mattei

Analyst, BloombergNEF, Tokyo

Why did you choose to work at Bloomberg?

I wanted to grow in a nurturing yet demanding environment. Bloomberg’s culture is a good fit as it offers us flexibility in how we work and gives us avenues to make our voices heard. It is also a stimulating, fast-paced workplace with many opportunities to thrive.

Tell us about your role and what is most interesting about what you do.

I am an analyst primarily covering natural gas markets in Japan and South Korea at BloombergNEF (BNEF), a research department within Bloomberg focused on commodities and the transition to a low-carbon economy. The most interesting part of my job is how much potential for learning there is – from exchanging insights with knowledgeable colleagues to getting feedback from our users on how to improve our product.

What has surprised you about working at Bloomberg?

Discovering that I am empowered to make decisions and shape my own work. Even as a rather junior employee, my views are recognized and appreciated.

What kind of support and opportunities have you received at Bloomberg?

There are many programs – on coding, for example – available through Bloomberg University and ad-hoc training sessions. I’ve also been lucky enough to enroll in the GOAL diversity and inclusion program, where I could share my experience working at Bloomberg and network with other female employees across APAC.

In terms of opportunities, I’ve been given the chance to present my work at various internal and external conferences in three languages (Japanese, Korean and English). I’ve also been trusted to oversee the publication of my team’s flagship report, which generates thousands of views on the Bloomberg Terminal. Most importantly, I feel stimulated and valued.

What is the best thing about our culture?

Bloomberg always strives to improve the working environment for everyone. This is reflected in the flexibility employees enjoy, how managers offer feedback, how training is designed and how goals are set.

Takehiro Kawahara

Aviation analyst, BloombergNEF, Tokyo

Why did you choose to work at Bloomberg?

I decided to join Bloomberg soon after the Great East Japan Earthquake, which occurred in 2011. I was studying environmental studies and sustainability science in Sweden at the time. The accident at the Fukushima Daiichi Nuclear Power Plant compelled me to think deeply about the transformation of the energy system and the introduction of renewable energy in Japan. In addition, I am from a coastal area of Iwate prefecture, which was hit by a tsunami triggered by the earthquake. I wanted to contribute to society through my work, so I decided to apply for a position at BNEF, analyzing the clean energy sector.

Can you tell us more about your current role?

I am in charge of analyzing the decarbonization of the global aviation sector. I keep track of emerging trends around next-generation aircraft and propulsion technology, government policies and airlines’ decarbonization strategies. The results of my analysis are delivered to our customers through the Bloomberg Terminal and the BNEF website. Also, I often give presentations to our clients and at events. I believe my work is meaningful because it helps customers in their strategy planning and decision-making.

What do you enjoy about your work?

Aviation is a relatively new theme for BNEF. I love that we can explore decarbonization strategies by combining existing insights that BNEF has accumulated over the years — on renewable energy, hydrogen and the carbon market, for example.

Before pursuing environmental studies and sustainability science, I studied aerospace engineering, which has been my passion since I was a child. The decarbonization of aviation ties these two fields together, and it is also an important global issue. I find joy in addressing this issue through my role as a BNEF analyst, and gaining new insights and perspectives.

What are some opportunities and experiences you’ve gained at Bloomberg?

I’ve had the chance to visit many different countries. For example, I’ve presented at an international renewable energy conference in Cambodia, conducted research interviews in Kenya, Tanzania and Ghana, and visited a start-up in the U.S. I also had the opportunity to work in our London office after being based in Tokyo for a few years. It was a valuable experience for me both professionally and personally.

Overall, what is it like to work at Bloomberg?

At my previous job, all of my colleagues were Japanese, so working with people from all across the globe at Bloomberg was a new experience for me. I love the culture of respecting one another’s differences. In BNEF’s Tokyo office, we have colleagues from Korea, Philippines, and France. We also have many Japanese colleagues who grew up overseas. We all get along and collaborate with one another.

Miquel Kishimoto

Sustainability analyst, BloombergNEF, Tokyo

Why did you choose to work at Bloomberg?

I decided to join Bloomberg as its truly open and global culture is unlike that of any other company. It is an ideal work environment where I can grow and contribute to society at the same time.

What is it like to work at Bloomberg?

Bloomberg is a place where I can be myself. Every day, I work with colleagues and customers around the world using different languages. Here, employees are encouraged to be proactive and take initiative in their work regardless of seniority, and there are many opportunities to receive constructive feedback and support.

Can you tell us about your current role?

The sustainable finance market is rapidly evolving and becoming more complex. In my role, I track market and policy developments related to sustainable finance, translate them into clear reports and charts, and explain them to customers in meetings and events.

What do you enjoy about your work?

Being part of a team that contributes to advancing the global transition to decarbonization through timely research and data. Personally, I enjoy analyzing complex issues and finding creative solutions to explain them in an easy-to-understand manner.

Is there anything that you’ve found surprising at Bloomberg?

I’m pleasantly surprised that I’ve been able to experience new and exciting career opportunities regardless of my educational background, work experience and seniority. It’s also surprising that less experienced employees are given important tasks, which enables them to advance to the next level. In addition, employees here come from diverse backgrounds and have different skills, yet we all help one another without hesitation. I believe this is one of the qualities that defines Bloomberg.

In late June, the International Sustainability Standards Board (ISSB) released its first two standards: the IFRS S1 and S2.

Companies globally welcomed these standards because they consolidate many existing reporting frameworks in which they are already participating — both voluntarily and, increasingly, as mandated by governments and stock exchanges. Investors were also appreciative of the standards as they prioritise financial materiality instead of requiring double (i.e. social and environmental impact) materiality.

What you need to know about the ISSB

The first standard, IFRS S1, defines the requirements for companies to communicate their sustainability-related risks and opportunities. The second, the IFRS S2, sets out specific climate-related disclosure requirements covering a holistic climate strategy such as greenhouse gas (GHG) emissions, transition plans, the impacts of climate risks using scenario analysis, and mitigation/ adaptation plans.

It is anticipated that these standards will gradually be adopted by regulators. Australia, Canada, the UK, Singapore and Hong Kong have already announced intentions to align their mandatory sustainability reporting requirements with the ISSB. The standards will apply to annual reporting periods starting from January 2024, with companies issuing disclosures against the standards in 2025. However, as the ISSB is a voluntary standard, applicability depends largely on adoption timeframes in specific jurisdictions.

Building on the TCFD

The standard draws heavily upon the Task Force for Climate-related Financial Disclosure (TCFD) which has to date been considered the gold standard for sustainability disclosure and has been adopted in multiple jurisdictions globally. From 2024, the ISSB will also take over the monitoring of progress on companies reporting against the TCFD.

The climate-specific standard IFRS S2 adopts an identical structure to that of the TCFD, following the same four pillars of governance, strategy, risk management, and metrics and targets. Yet in some areas, it also goes further than the TCFD.

Some key examples include the following:
 

Risk management now integrates climate opportunitiesWhile the TCFD’s risk management pillar focused specifically on climate risks, the expectation from the IFRS S2 is that the disclosure and integration of processes to identify, assess and manage climate risks will now include climate opportunities too.More detail is also expected on the extent and nature of the integration that will take place within enterprise risk management processes and on how the nature, likelihood and magnitude of climate risks and opportunities are to be determined.Scope 3 emissions must be disclosedThe IFRS S2 framework requires the disclosure of scope 3 emissions in addition to scope 1 and 2. Under the TCFD, scope 3 was encouraged if it is deemed to be material but was not mandatory. The change ensures that the reporting shows the full impact of the company and its value chain.Financed emissions (scope 3, category 15) must also be disclosed by entities involved in asset management, commercial banking or insurance.Disclosed scope 2 emissions must be location-basedThe GHG Protocol outlines two methods for calculating scope 2 emissions: location-based scope 2 emissions reflect the average emissions intensity of grids, while the market-based approach reflects emissions from electricity that companies have purposefully chosen (or not chosen) to procure, e.g. by using contractual instruments. The ISSB stipulates that location-based scope 2 emissions should be used for disclosure, but that this should also be supplemented by information on any contractual instruments that are relevant (e.g. renewable energy certificates), so as to give the most informed understanding of the entity’s scope 2 emissions.

Clearer requirements for key disclosure areas

In other areas, the ISSB makes existing expectations under the TCFD framework more explicit. Examples include the following:

Quantified financial impact of climate risks and opportunitiesThe ISSB standards specifically require companies to disclose information on their financial position, performance and cash flows in the reporting period, whether as a range or single amount. This reinforces the TCFD’s expectation that companies provide information about their sustainability impacts and their efforts in their financial statements in order to reflect the financial impacts that climate issues can have on companies.In assessing climate risks and opportunities, entities must also disclose the amount and percentage of assets or business activities that are vulnerable to climate-related transition and physical risks, and which are aligned with climate-related opportunities.Greater focus on transition plansReporting entities must outline how they plan to transition to a low-carbon economy and achieve set climate targets. This should also include current and anticipated changes to a company’s business model, strategy, resource allocation and capital as a result of its exposure or vulnerability to climate change risks and opportunities.Climate-related skills and competencies on your Board and within your management teamsEntities must disclose how the governance body(s) or individual(s) determine whether the appropriate skills and competencies are available or will be developed to oversee strategies designed to respond to climate-related risks and opportunities

While this may seem overwhelming for some, the standards include a proportionality principle which clarifies that the ISSB only expects companies to use reasonable and supportable information that is available without undue cost or effort and within consideration of its skills, capabilities and resources to fulfill the disclosure requirements.

Where to from here?

No matter where your company is on its climate disclosure and action journey, you should take the ISSB into account before you take your next steps. We recommend that you prepare ahead of potential mandatory ISSB disclosure requirements in your jurisdiction/s. Each jurisdiction will define the specific scope of companies that may need to comply with its disclosure requirements. However, it is good practice for companies to start aligning with ISSB voluntarily, especially if you’re looking to be an industry leader.

For companies who are at the beginning of their climate journey or not yet reporting against the TCFD, the best way to start is to review your readiness using the ISSB standards. This can help locate your alignment gaps and the results can be used as inputs for the development of a roadmap or holistic climate strategy.

For more advanced companies who are already familiar and aligned with the TCFD, you should focus on the key areas where the ISSB requires more extensive disclosure compared to the TCFD and update your sustainability planning accordingly.

Not sure how the ISSB disclosure requirements will impact your business? It’s always better to be proactive with new best practice standards and prepare ahead of possible incoming mandatory requirements. Reach out to your South Pole representative to discuss.