Tag: 3BL

Kathleen Dumes, CFA| Responsible Investing Research Analyst—Fixed Income Responsible Investing

For a deeper dive into PRISM 3.0, read our paper, Breaking the ESG Barrier: Empowering Credit Investors Through Better and Faster Data.

Transcript

Investors need to integrate financially material ESG risks and opportunities into their portfolios. But that’s no easy matter. Company ESG data, when it exists, can be hard to find and subjective. And there are few global data standards, making apples-to-apples comparisons challenging.

Investors looking to avoid data issues frequently turn to third-party ESG rating providers. Unfortunately, not only is there huge variability in ESG scores provided by third parties, but those scores often look in the rearview mirror, ignoring companies’ commitments and paths forward.

That’s why we’ve developed a new approach to credit research that allows our analysts to capture, objectively analyze and consistently evaluate financially material ESG metrics, turning a data problem into a data-driven solution.

We call this digital ESG scoring platform PRISM 3.0.

PRISM sources nearly 180 metrics from NGOs, governments and third parties.

This data is not only financially material, in our view, but is also clean, to ensure data integrity. That helps minimize human biases and generates more objective company analyses.

PRISM’s resulting ESG scores allow for meaningful comparison of companies, both within industries and across industries. That’s because PRISM doesn’t try to fit the same generic ESG metrics onto all companies. Because different industries are exposed to different environmental and social risks, PRISM looks at industry-relevant metrics to provide more accurate assessments.

For example, when analyzing an airline, looking only at carbon intensity may be misleading. Emissions per passenger-kilometer flown better represent an airline’s ability to be fuel efficient.

Unlike most third-party scorers, PRISM covers 96 to 98% of the universe of investment-grade, high-yield and emerging-market corporate bonds, including small and unlisted companies.

Lastly, PRISM frees up credit analysts’ time, allowing them to focus on targeted engagements* with corporate issuers to gain unique, forward-looking insights—the kind that power active investing.

Ultimately, PRISM puts robust, contextualized ESG data at portfolio managers’ fingertips to enable faster—and better—decision-making for client portfolios.

*AB engages issuers where it believes the engagement is in the best financial interest of its clients.

The views expressed herein do not constitute research, investment advice or trade recommendations and do not necessarily represent the views of all AB portfolio-management teams. Views are subject to revision over time.

Learn more about AB’s approach to responsibility here.

Originally published in the Chemours 2023 Sustainability Report

In a year shaped by external and internal challenges and change, Chemours’ commitment to sustainability and our values remained unwavering. This is reflected in the significant progress we made against our Corporate Responsibility Commitment goals, which prioritize actions that improve lives, power modern progress, and protect our planet for future generations. We are focused on priorities that matter to our company and our stakeholders, and we fully integrate sustainability into our business decisions and actions across our organization. We are firm in our belief that what is good for the world is also good for business.

This past year, we’ve seen our values in action as we confronted challenges headon, turning hurdles into opportunities. We’ve taken decisive action in advancing sustainable innovations, strengthening our environmental leadership, and reducing our operational impact while delivering important products that our customers and the world need for a more sustainable future.

Partnering for Progress

The growing needs to address climate change, preserve biodiversity, and ensure that prosperity and progress are inclusive are not only essential for our society, but also essential to our business. The products we make enable sustainable technologies and applications that intersect with these global priorities, and our chemistry is inseparable from meeting the world’s demand for clean energy, next-generation semiconductor chips, and data centers that consume less energy and water. The scale and complexity of these global challenges can make them appear insurmountable; no single organization can solve these problems alone. The need for partnerships with stakeholders across the public and private sectors is more vital than ever as the shared pursuit of solutions, diverse perspectives, and expertise are the cornerstones of transformative progress.

Responsible Manufacturing

We can each do our part to create a better world. In our daily operations, sustainability begins with our employees and the responsible manufacturing of our products. Across our manufacturing network, we have invested in ground-breaking emissions control technologies to reduce our environmental impact, worked to reduce our energy and water consumption, and continue to partner across industry and academia on pathways to promote greater circularity. While the products we produce are critical, how we produce them is equally as important.

That is why we set ambitious environmental goals and every day apply the investments, creativity, and energy needed to achieve them. We have been, and continue to be, an environmental leader in our industry and recognize that our most important responsibility is to protect the well-being of our people and the communities surrounding our plants.

Moving Forward 

Our belief in what we can achieve together is stronger than ever. I am excited to renew our commitment to our goals and pledge our ongoing support to the Ten Principles of the United Nations Global Compact. I invite everyone to explore our Sustainability Report to see the milestones we’ve proudly reached with full acknowledgment that there remains more work to be done on our sustainability journey. We hope you’ll find that the report is a plain-spoken chronicle of our shared commitment and a roadmap for the future we are striving to create, as we to partner to forge a more sustainable path forward for us all.

Read the full Chemours 2023 Sustainability Report

For more about Chemours and it’s 2030 Goals, visit our site

Originally published in the Chemours 2023 Sustainability Report

In a year shaped by external and internal challenges and change, Chemours’ commitment to sustainability and our values remained unwavering. This is reflected in the significant progress we made against our Corporate Responsibility Commitment goals, which prioritize actions that improve lives, power modern progress, and protect our planet for future generations. We are focused on priorities that matter to our company and our stakeholders, and we fully integrate sustainability into our business decisions and actions across our organization. We are firm in our belief that what is good for the world is also good for business.

This past year, we’ve seen our values in action as we confronted challenges headon, turning hurdles into opportunities. We’ve taken decisive action in advancing sustainable innovations, strengthening our environmental leadership, and reducing our operational impact while delivering important products that our customers and the world need for a more sustainable future.

Partnering for Progress

The growing needs to address climate change, preserve biodiversity, and ensure that prosperity and progress are inclusive are not only essential for our society, but also essential to our business. The products we make enable sustainable technologies and applications that intersect with these global priorities, and our chemistry is inseparable from meeting the world’s demand for clean energy, next-generation semiconductor chips, and data centers that consume less energy and water. The scale and complexity of these global challenges can make them appear insurmountable; no single organization can solve these problems alone. The need for partnerships with stakeholders across the public and private sectors is more vital than ever as the shared pursuit of solutions, diverse perspectives, and expertise are the cornerstones of transformative progress.

Responsible Manufacturing

We can each do our part to create a better world. In our daily operations, sustainability begins with our employees and the responsible manufacturing of our products. Across our manufacturing network, we have invested in ground-breaking emissions control technologies to reduce our environmental impact, worked to reduce our energy and water consumption, and continue to partner across industry and academia on pathways to promote greater circularity. While the products we produce are critical, how we produce them is equally as important.

That is why we set ambitious environmental goals and every day apply the investments, creativity, and energy needed to achieve them. We have been, and continue to be, an environmental leader in our industry and recognize that our most important responsibility is to protect the well-being of our people and the communities surrounding our plants.

Moving Forward 

Our belief in what we can achieve together is stronger than ever. I am excited to renew our commitment to our goals and pledge our ongoing support to the Ten Principles of the United Nations Global Compact. I invite everyone to explore our Sustainability Report to see the milestones we’ve proudly reached with full acknowledgment that there remains more work to be done on our sustainability journey. We hope you’ll find that the report is a plain-spoken chronicle of our shared commitment and a roadmap for the future we are striving to create, as we to partner to forge a more sustainable path forward for us all.

Read the full Chemours 2023 Sustainability Report

For more about Chemours and it’s 2030 Goals, visit our site

Previously published by TriplePundit

By Abha Malpani Naismith

Teachers in the United States are spending more of their own money than ever before to meet an overwhelming need for even basic school supplies like paper and pencils. They spent an average of $860 on classroom supplies in the 2022-2023 school year, a 44 percent increase since 2015, according to AdoptAClassroom.org surveys. That’s largely because funding for classroom supply budgets have not kept up to meet students’ needs. 

Over the past four years, Subaru of America has partnered with AdoptAClassroom.org to help reduce this financial burden. Donors and corporate sponsors can “adopt” a specific classroom by donating on the fundraising platform. Teachers use the money for supplies, designing and developing the classroom environment, and incorporating modern educational technologies and materials for new teaching methods.

The Subaru journey into educational support began with a shared vision. “It started with a simple introduction to AdoptAClassroom.org, which turned into a powerful collaboration under our Subaru Loves Learning initiative,” said Lauren Papasidero, Love Promise Community Commitment Specialist at Subaru of America. “Our goal was clear from the beginning — we wanted to ensure that every student had the necessary tools for success, irrespective of their economic background. As of this year, we will have helped over 750,000 students nationwide.”

Subaru of America is headquartered in Camden, New Jersey, and over the past four years the company has adopted every grade school and every high school in the city’s public school district.. “Through our partnership, we have helped set up their classrooms, we provided a graphic arts lab to one high school, and we assist them with any task they need,” Papasidero said. “We also ask Subaru of America colleagues to spend a day volunteering and supporting teachers at schools throughout the entire Camden City School District.”

Before partnering with AdoptAClassroom.org, Subaru was working hard to align the national scope of its educational support program with local impact needs. It’s crucial that the company’s more than 630 automotive retailers can support high-needs schools within their local communities. The solution was coordinating with AdoptAClassroom.org to match each retailer with a nearby school in need, while navigating complexities such as pre-existing relationships with non-eligible schools. Subaru then encouraged retailers to consistently partner with the same schools to foster long-term relationships and maximize impact.

“This year, we have 78 percent of our retailers partnering with the same school for the fourth consecutive year,” Papasidero said. “While it was a hurdle in the beginning — how can we execute locally when we’re national? — I’m proud to say we have overcome that challenge and now have relationships in every local community. AdoptAClassroom.org helped us foster these relationships and grow them, and our retailers have really taken it and run with it.”

Reflecting on the broader impact highlights the effectiveness of the partnership, but also illustrates the deep-seated needs that persist in educational institutions across the country. “Ninety-two percent of teachers reported that our contributions significantly increased access to essential educational materials,” Papasidero said. 

The flexible funding that Subaru provides offers teachers the opportunity to get what they need most for their classrooms. And on top of that, Subaru retailers are always encouraged to go above and beyond in their efforts to make a difference. 

“One of our retailers learned that many students go home without access to electricity, so they were unable to charge their devices,” Papasidero said. “The students would come in the morning with little to no battery on their devices, so they weren’t able to participate in their educational activities. When we contacted AdoptAClassroom.org, we learned that the school was interested in purchasing charging carts, but had budget restrictions. So, team Subaru stepped up and, through AdoptAClassroom.org, donated over 35 charging carts to this school, providing every student in the classroom access to electricity.”

Creating an internship program for local special education graduates is another example of a Subaru retailer thinking outside the box. “They learn real-world business skills and how to work in a professional setting, but in a nurturing environment,” Papasidero said. “And what’s more, last year’s intern was hired on full-time after their internship.” 

The synergy between Subaru and AdoptAClassroom.org is a testament to the power of collaborative philanthropy. As companies like Subaru step up to address societal challenges, their actions set a precedent for how corporate entities can make a difference.

Previously published by TriplePundit

By Abha Malpani Naismith

Teachers in the United States are spending more of their own money than ever before to meet an overwhelming need for even basic school supplies like paper and pencils. They spent an average of $860 on classroom supplies in the 2022-2023 school year, a 44 percent increase since 2015, according to AdoptAClassroom.org surveys. That’s largely because funding for classroom supply budgets have not kept up to meet students’ needs. 

Over the past four years, Subaru of America has partnered with AdoptAClassroom.org to help reduce this financial burden. Donors and corporate sponsors can “adopt” a specific classroom by donating on the fundraising platform. Teachers use the money for supplies, designing and developing the classroom environment, and incorporating modern educational technologies and materials for new teaching methods.

The Subaru journey into educational support began with a shared vision. “It started with a simple introduction to AdoptAClassroom.org, which turned into a powerful collaboration under our Subaru Loves Learning initiative,” said Lauren Papasidero, Love Promise Community Commitment Specialist at Subaru of America. “Our goal was clear from the beginning — we wanted to ensure that every student had the necessary tools for success, irrespective of their economic background. As of this year, we will have helped over 750,000 students nationwide.”

Subaru of America is headquartered in Camden, New Jersey, and over the past four years the company has adopted every grade school and every high school in the city’s public school district.. “Through our partnership, we have helped set up their classrooms, we provided a graphic arts lab to one high school, and we assist them with any task they need,” Papasidero said. “We also ask Subaru of America colleagues to spend a day volunteering and supporting teachers at schools throughout the entire Camden City School District.”

Before partnering with AdoptAClassroom.org, Subaru was working hard to align the national scope of its educational support program with local impact needs. It’s crucial that the company’s more than 630 automotive retailers can support high-needs schools within their local communities. The solution was coordinating with AdoptAClassroom.org to match each retailer with a nearby school in need, while navigating complexities such as pre-existing relationships with non-eligible schools. Subaru then encouraged retailers to consistently partner with the same schools to foster long-term relationships and maximize impact.

“This year, we have 78 percent of our retailers partnering with the same school for the fourth consecutive year,” Papasidero said. “While it was a hurdle in the beginning — how can we execute locally when we’re national? — I’m proud to say we have overcome that challenge and now have relationships in every local community. AdoptAClassroom.org helped us foster these relationships and grow them, and our retailers have really taken it and run with it.”

Reflecting on the broader impact highlights the effectiveness of the partnership, but also illustrates the deep-seated needs that persist in educational institutions across the country. “Ninety-two percent of teachers reported that our contributions significantly increased access to essential educational materials,” Papasidero said. 

The flexible funding that Subaru provides offers teachers the opportunity to get what they need most for their classrooms. And on top of that, Subaru retailers are always encouraged to go above and beyond in their efforts to make a difference. 

“One of our retailers learned that many students go home without access to electricity, so they were unable to charge their devices,” Papasidero said. “The students would come in the morning with little to no battery on their devices, so they weren’t able to participate in their educational activities. When we contacted AdoptAClassroom.org, we learned that the school was interested in purchasing charging carts, but had budget restrictions. So, team Subaru stepped up and, through AdoptAClassroom.org, donated over 35 charging carts to this school, providing every student in the classroom access to electricity.”

Creating an internship program for local special education graduates is another example of a Subaru retailer thinking outside the box. “They learn real-world business skills and how to work in a professional setting, but in a nurturing environment,” Papasidero said. “And what’s more, last year’s intern was hired on full-time after their internship.” 

The synergy between Subaru and AdoptAClassroom.org is a testament to the power of collaborative philanthropy. As companies like Subaru step up to address societal challenges, their actions set a precedent for how corporate entities can make a difference.

LinkedIn

Deeanne King joined Toptal‘s Talent Economy podcast to talk about her role as T-Mobile‘s Chief People Officer. “The way I see it, our role as HR professionals is to take care of the people who take care of our customers!

Thank you, Michelle Labbe, for a great conversation. You can listen to the full episode here.”

LinkedIn

Deeanne King joined Toptal‘s Talent Economy podcast to talk about her role as T-Mobile‘s Chief People Officer. “The way I see it, our role as HR professionals is to take care of the people who take care of our customers!

Thank you, Michelle Labbe, for a great conversation. You can listen to the full episode here.”

Recycled building materials–those that are reclaimed when a building is deconstructed rather than demolished– play an important role in reducing emissions and air pollution and uplifting communities.

It’s a topic that Kelley Lowe, director of salvage at Re:Purpose Savannah, is deeply passionate about.

In this interview in the Georgia Climate Digest video series, Eriqah Vincent of Drawdown Georgia speaks with Kelley about the path that led the Fine Arts major to a career in deconstruction and recycled building materials, and the many benefits of reclaiming these materials, from environmental to cultural to economic.

Kelley also shares how you can support the work of Re:Purpose Savannah and the movement to reclaim building materials in your community.

Click here to watch the video.

In this latest blog written by Rick Ridgeway, co-founder of Cascale, he shares reflections on Cascale’s origins and roadmap for future success following our Annual Meeting in Munich. Ridgeway highlights why Cascale’s founding principles are relevant today and reiterates how, with enormous potential, the right tools, partnerships, and a commitment to continuous improvement, Cascale stands ready to guide the industry forward.

Read the full blog here.

Authored by Baker Tilly’s Jordan Anderson

As artificial intelligence (AI) continues to transform the way we live, work and interact with technology, Colorado has taken a significant step forward in the regulation of these systems. Signed into law by Governor Jared Polis on June 8, 2021, the Colorado AI Act [1] (also known as Senate Bill 24-205) is the first state-level comprehensive legislation in the U.S. that regulates the use of AI systems. The act aims to promote transparency, accountability and fairness in the development and deployment of AI systems while protecting the rights and interests of consumers and citizens.

Key provisions of the act

The act focuses primarily on “high-risk” AI systems, which are AI-based systems that, when deployed, make “consequential decisions.” Consequential decisions are decisions that have a material impact on consumers’ educational opportunity, employment, finance and lending, healthcare, housing, legal or government services.

Developer obligations

“Developers,” those that create or substantially modify a high-risk artificial intelligence system, must exercise reasonable care to protect consumers from any known or foreseeable risks of algorithmic discrimination arising from the use of their AI system. Additionally, “Developers” must make available the following documentation, disclosures and information to “Deployers” and other developers of the AI system:

A general statement describing the reasonably foreseeable uses and known harmful or inappropriate uses of the high-risk AI systemDocumentation disclosing: 
– High-level summaries of the type of data used to train the high-risk AI system 
– Known or reasonably foreseeable limitations of the AI system 
– The purpose of the AI system 
– Its intended benefits and uses 
– All other information necessary for a deployer to comply with the “Deployer’s” obligationsDocumentation describing: 
– How the AI system was evaluated for performance and mitigation of algorithmic discrimination 
– The data governance measures to cover the training datasets and measures used to examine the suitability of data sources including possible biases and appropriate mitigation 
– The intended outputs of the AI system 
– How the system should be used, not be used and be monitoredAny additional documentation that is reasonably necessary to assist the “Deployer” in understanding the outputs and monitor the performance of the AI system

Disclosures and notifications

“Developers” are obligated to disclose, on their website or in a public use-case inventory, a statement summarizing the types of high-risk AI that the developer has developed or modified and how the developer manages risks of algorithmic discrimination. Additionally, the “Developer” is required to keep these disclosures updated as the AI system is modified.

Within 90 days of a “Developer” discovering that a high-risk AI system has been deployed and has caused or is reasonably likely to have caused discrimination, they must inform the Colorado Attorney General and all known “Deployers” and “Developers” of the AI system.

Deployer obligations

“Deployers” are entities that do business in Colorado and deploy (e.g., implement or use with consumer impacts) a high-risk AI system. Like a “Developer,” a “Deployer” must exercise reasonable care to protect consumers from any known or reasonably foreseeable risks of algorithmic discrimination and must notify consumers when they have deployed a high-risk AI system to make, or be a substantial factor in making, a consequential decision concerning a consumer. “Deployers” are required to disclose:

A description of the AI systemA description of the purpose of the AI systemThe nature of consequential decisions being madeInstructions on how to access details of the AI system on their websiteProvide information regarding the consumer’s right to opt out of the processing of personal data concerning the consumer for profilingMake available in a manner that is clear and readily available on their website, the types of high-risk AI systems deployed, how they manage known or foreseeable risks of algorithmic discrimination, and the nature, source and extent of information collected and used by the AI systemWithin 90 days of discovering that their high-risk AI system has caused or is reasonably likely to have caused discrimination, they must inform the Colorado Attorney General

Adverse decisions

When a “Deployer’s” high-risk AI system makes a consequential decision that its adverse to the consumer, the “Deployer” must:

Provide to the consumer a statement disclosing:

The principal reason or reasons for the consequential decision, including the degree and manner to which the AI system contributed to the decisionThe types and sources of data that were processed by the AI system in making the decisionProvide an opportunity for the consumer to correct any incorrect personal data and appeal the adverse decision and require human review

Additional disclosures to consumers

While the sections above refer specifically to high-risk AI systems, the following disclosures apply to any AI system that consumers interact with. “Deployers” of AI systems (that are not obvious to a reasonable person) must disclose that the system the consumer is interacting with is an AI system.

Enforcement by attorney general

The Colorado Attorney General has exclusive authority to enforce the act. “Developers” and “Deployers” that are faced with an enforcement action have an affirmative defense if both the following are true:

They discover and cure a violation of the act because of feedback, adversarial testing or “red teaming,” or internal review processes

They comply with the latest version of the NIST AI Risk Management Framework [2] or another nationally or internationally recognized risk management framework for AI systems, or any risk management framework designated by the attorney general.

Additional regulations

The attorney general may promulgate additional rules as necessary for the purpose of implementing and enforcing the act. These changes may include documentation and requirements for “Developers,” notifications to consumers, required disclosures and risk management and impact assessment policies and procedures.

Establishing risk management policies and program

A “Deployer” of a high-risk AI system must implement and maintain a risk management policy and program to govern the AI system that incorporates the principles, processes and personnel that the “Deployer” uses to identify, document and mitigate risks of algorithmic discrimination.

Acceptable risk management frameworks include the NIST AI Risk Management Framework [3], ISO/IEC 42001 [4] or other internationally recognized, substantially equivalent, risk management standards.

Impact assessment

Within 90 days of the act taking effect, a “Deployer” or third party contracted by the “Developer” must complete an impact assessment that is then repeated annually and whenever substantial modifications to high-risk AI systems occur. The impact assessment must include, at a minimum:

A statement disclosing the purpose, intended use cases and benefits afforded by the high-risk AI systemAn analysis of whether the deployment of the AI system poses any risks of algorithmic discrimination and the steps that have been taken to mitigate those risksA description of the categories of data the AI system processes as inputs and the outputs the AI system producesAny metrics used to evaluate the performance and limitations of the AI systemA description of any transparency measures taken to notify a user that the AI system is in useA description of post-deployment monitoring and user safeguards

Exemptions to high-risk AI policy

The “Deployer” employs fewer than 50 people

The “Deployer” does not use its own data to train the AI system

The AI system is used for its intended purpose

The “Deployer” makes available to consumers any impact assessment that the “Developer” of the AI system has completed

What should organizations do to prepare for compliance?

The act will take effect on Feb. 1, 2026, giving organizations two years to prepare for compliance. Organizations that operate in Colorado and leverage AI should consider the following steps to comply:

Appoint a team to lead AI compliance effortsConduct an inventory and assessment of existing and planned AI use cases and determine whether they meet the standard of a high-risk AI systemImplement an AI risk management framework, such as the NIST AI Risk Management Framework [5]Create and document the policies and procedures for disclosing, explaining and evaluating AI systems, and for addressing the feedback from the end user or consumerSet the foundation to conduct impact assessments by identifying the policies, processes and resources needed to orchestrate, conduct, document, analyze and monitor AI impactImplement and test the mechanisms and tools for providing the required documentation, disclosures and other required informationTrain and educate staff and stakeholders on the ethical and legal implications of AI systems, and on the best practices for designing and operating themMonitor and review AI systems regularly to adjust and improve as needed

Organizations that develop or deploy AI systems for use in Colorado should consider an AI Readiness Assessment to identify gaps in organizational preparedness and build a road map to achieve and maintain compliance with changing regulations.

What does this mean for companies outside of Colorado?

Although the legislation directly applies to organizations that do business in Colorado, the Colorado AI Act is landmark legislation that sets a precedent for other states to follow. Utah has enacted legislation that establishes liability for use of AI that violates consumer protection laws if not properly disclosed. Additionally, four other states (CA, IL, MA, OH) have active bills related to fair and responsible use of AI.

This policy proliferation reflects the growing awareness and concern about the potential impacts and risks of AI systems on society and individuals. Organizations with operations in affected states will need to align their AI practices with the state’s regulatory standards, potentially prompting a broader adoption of these guidelines to ensure consistency across their operations.

Finally, it is important to monitor the changing AI regulatory landscape, conduct regular risk and vulnerability assessments of AI systems and ensure governance is being applied across the organization.

How we can help

Ensuring your organization is properly equipped to adhere to incoming AI regulations will help save time, energy and resources by preventing retrospective efforts. Baker Tilly’s digital team can support your organization in defining an AI strategy, conducting readiness and impact assessments, designing and implementing an AI governance and risk management framework, or – if you already have things in place – implementing and scaling AI systems.

Contact a Baker Tilly specialist to learn more.