Tag: 3BL

Patrick O’Connell, CFA| Director—Fixed Income Responsible Investing Research

Christian DiClementi| Portfolio Manager—Emerging Market Debt

Elizabeth Bakarich, CFA| Portfolio Manager—Emerging Market Corporate Debt

Just six metrics can effectively assess sovereign issuers’ sustainability and provide guidance for both issuers and investors.

From a sustainability perspective, investing in sovereign emerging-market (EM) debt can feel messy. Most investors feel just familiar enough with individual EM countries to fall prey to subjective judgments when making comparisons. The market tends to overreact to news—good news, bad news and often both at once. And huge, complex data sets bog down analyses and muddy the view.

That’s why we’ve charted a new path: one that sheds light on sovereign EM investing through a small set of concrete metrics that help identify potential value and provide guidance for both issuers and sustainable investors.

Gauging Sustainability with Precision Metrics

To solve the problems of subjectivity, reactivity and obscurity, we’ve identified six measures by which a sovereign issuer may be ruled in or out of an investable universe of sustainable sovereign debt.

We began with the 17 UN Sustainable Development Goals (SDGs), which we recognize as a blueprint for identifying sustainable investments. Together, these 17 SDGs comprise 169 specific sub-targets. From these, we selected six that represent the broader investment themes of climate, health and empowerment. We believe that these six sub-targets capture the spirit of the larger list. They cover the transition to low-emissions energy consumption; biodiversity; hunger; infant mortality; equal employment opportunities; and institutional strength (Display).

For each of these six sub-targets, we identified a specific measure. For example, to be considered in alignment with UN SDG 3.2 (one of the two health sub-targets), countries should reduce newborn mortality to 12 or fewer deaths per 1,000 live births—a threshold set by the UN. Roughly half of all countries pass this metric.

Applying the Framework to Narrow the Investable Universe

The result is a robust analytical framework anchored in specific UN SDG targets. A country that passes all six metrics qualifies for sustainable EM investing. Countries that fail three or more metrics should not be considered for inclusion in a sustainable investing universe.

In our analysis, countries that fall just short of passing, failing only one or two of the six metrics, deserve a closer look. If we believe we can engage* with the country to improve in that fifth or sixth category, that country may become eligible for inclusion.

Just how rigorous is this methodology? Only about half of all countries pass any single metric. Fewer than 20% of countries globally, including developed markets, pass all six metrics.

Further, thanks to the materiality of the identified metrics over the long run, we believe that countries that pass this framework can deliver better risk and return outcomes over time than those that fail.

Putting the Framework into Practice

Three countries—Chile, Brazil and the Philippines—exemplify the rigor of this framework.

Chile hits the mark by passing all six metrics. The country’s sustainable development is on par with that of many developed countries. For example, from 2010 through 2019, Chile increased wind and solar energy from around 1% to 14% of total electricity. Since 2000, it has increased its forested land by around 15%. It recently met UN goals around lowering preventable infant deaths. And it has a strong female participation rate in the labor force.

Brazil fails one critical metric: deforestation. Since 2000, the country’s forest cover has declined by 10%, due mostly to destruction of the Amazon rainforest. (Almost 20% of the Amazon rainforest has been destroyed since 1970.) In our framework, this signals the need for investors and asset managers such as ourselves to actively engage with Brazil to make needed improvements on this front.

After all, Brazil leads the world in many other sustainability measures: increasing wind and solar from around 0% to 10% of total electricity; meeting the UN threshold on preventable infant deaths; and having a fairly strong labor force participation rate from women.

By contrast, the Philippines fails on three metrics and thus is not yet eligible for inclusion in our sustainable universe, despite having a dynamic economy and an investment-grade rating. From 2010 through 2019, the country increased wind and solar only marginally to just 2% of its electricity matrix. Though the Philippines has worked to reduce preventable infant deaths, at the current rate the country will fail to meet UN goals by 2030. And the labor force participation rate from women is below our threshold.

The Benefits of a Sustainable Framework

Not only is this framework robust, but unlike many existing approaches to defining a sustainable investment universe, our approach is simple, transparent and objective, with data drawn from neutral sources such as the World Bank.

What’s more, our approach positions the investable universe to grow as more countries meet more metrics, because it uses absolute, rather than relative, thresholds. In addition, five of the six metrics are forward-looking, so that we are able to assess not only where a country is now (static measure) but where it is going (dynamic measure). And the approach allows for targeted, effective engagement on material and relevant issues—helping an issuer move the needle from nearly to fully qualified.

Lastly, our framework for sustainable sovereign investing aligns with investor objectives and intentions. Where the goal is to improve sustainable practices around the world, we believe our framework stands out as both effective and credible.

*AB engages issuers where it believes the engagement is in the best 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.

Meet McDonald’s crew member Maria Angela, a proud participant in McDonald’s global Youth Opportunity program (run in partnership with the International Youth Foundation). She’s based in Washington, D.C. and is a valued Crew member at a local McDonald’s brand restaurant. She is gaining the skills, experience and confidence that will carry her into her career.

Maria is one of almost 2,000,000 young people impacted by McDonald’s partnership with the International Youth Foundation since 2018. The Youth Opportunity program provides job readiness training, employment opportunities and workplace development programs to lower barriers to employment for young people, especially in underserved communities. Around 87% of Youth Opportunity participants are Black or LatinX, and around 56% are female.

Whether it’s interview coaching, virtual lessons, language and interpersonal skill development or simply a safe and welcoming workplace, Youth Opportunity helps participants practice critical life skills and prepare for their future.

McDonald’s created the Youth Opportunity program to reduce barriers to employment for young people like Maria Angela through pre-employment job readiness training, employment opportunities, and workplace development programs. 

About McDonald’s

McDonald’s is the world’s leading global foodservice retailer with nearly 40,000 locations in over 100 countries. Approximately 95% of McDonald’s restaurants worldwide are owned and operated by independent local business owners.

View original content here.

Meet McDonald’s crew member Maria Angela, a proud participant in McDonald’s global Youth Opportunity program (run in partnership with the International Youth Foundation). She’s based in Washington, D.C. and is a valued Crew member at a local McDonald’s brand restaurant. She is gaining the skills, experience and confidence that will carry her into her career.

Maria is one of almost 2,000,000 young people impacted by McDonald’s partnership with the International Youth Foundation since 2018. The Youth Opportunity program provides job readiness training, employment opportunities and workplace development programs to lower barriers to employment for young people, especially in underserved communities. Around 87% of Youth Opportunity participants are Black or LatinX, and around 56% are female.

Whether it’s interview coaching, virtual lessons, language and interpersonal skill development or simply a safe and welcoming workplace, Youth Opportunity helps participants practice critical life skills and prepare for their future.

McDonald’s created the Youth Opportunity program to reduce barriers to employment for young people like Maria Angela through pre-employment job readiness training, employment opportunities, and workplace development programs. 

About McDonald’s

McDonald’s is the world’s leading global foodservice retailer with nearly 40,000 locations in over 100 countries. Approximately 95% of McDonald’s restaurants worldwide are owned and operated by independent local business owners.

View original content here.

Originally published by Gilead Sciences

When Shirley Cantin was a law student, about half of her classmates were women. Yet when she joined a corporate law firm, Shirley noticed that most of its leaders were white men. And when she left a decade later, little progress on the leadership team’s diversity had been made.

“I really want to see more diversity at the top, which is where it matters most,” says Shirley, now Senior Associate General Counsel, Head of U.S. IP Litigation at Gilead. “We need women, working mothers, people of color and others with diverse backgrounds in leadership positions – and to get there, everyone needs to pitch in.”

For the last two years, Shirley has been working with Keeley Wettan, Senior Vice President of Global Legal Business Partners, and other team members to shape a more diverse and inclusive future for the legal field and recently obtained Mansfield Certification for Gilead. The certification program aims to diversify leadership and increase opportunities for people who have been historically underrepresented in law firms and in-house legal departments. In addition, Gilead achieved Mansfield Certification Plus, which measures actual diverse representation within the company’s Legal Department.

“The Mansfield Certification allows us to move beyond saying we’re committed to diversity and inclusion,” says Keeley. “We’ll be able to demonstrate our work to attract, retain and promote diverse talent.”

Mansfield Certification Efforts 
The Mansfield Certification program was created in 2017, and hundreds of U.S. businesses and law firms across industries, including a small group of pharmaceutical companies, have been certified so far.

The Legal team kicked off its efforts to obtain certification in 2021, and for Keeley, part of the reasoning was personal. “I’m the mother of three girls. When they enter the workforce, I want them to see leaders that reflect society,” says Keeley.

To earn certification, an all-volunteer team at Gilead developed benchmarks and measurement systems to track hiring, promotions, career development opportunities such as speaking engagements, and roadmaps for advancement of attorneys who have been historically underrepresented. This includes women, underrepresented races and ethnicities, individuals who identify as LGBTQ+ and people with disabilities. Part of these efforts included reworking Gilead’s job application system to allow applicants to identify, if they choose, as LGBTQ+ – enabling the team to track progress made.

“This is about broadening the pipeline pool,” says Shirley. “When you see the data, it shows where you are and where you can improve.” The process was challenging and rigorous, even for companies like Gilead that have established programs focused on inclusion and diversity. For example, the program extends to outside firms that work with Gilead, requiring that at least half of the teams considered are led or co-led by attorneys who have been historically underrepresented.

Gilead Looks Ahead to a More Diverse Future 
Gilead’s Legal Department plans to continue using its newly established tracking systems to maintain and measure its progress. To bring about lasting change, the team is also focused on inclusion and retention.

“We’re continuing to make sure everyone feels comfortable being who they are,” says Shirley. “You can’t have diversity without inclusion.”

As one step, earlier this year the department held a six-session inclusive leadership training that included support for protecting psychological safety. Another program matches legal professionals with senior leaders though a sponsorship program. Leaders then advocate for their matches internally.

“It’s great to introduce folks to someone they wouldn’t necessarily have a relationship with, to learn from and to think about what they can do with their career,” says Keeley.

Although the Mansfield Certification process only applies to legal departments and firms, Gilead is committed to promoting inclusion and diversity across all of the company’s functions.

“We know that diverse workforces have a higher performance and a stronger work environment,” says Keeley. “The Mansfield Certification provides the pathway for us to chart our improvement.”

Originally published by Gilead Sciences

When Shirley Cantin was a law student, about half of her classmates were women. Yet when she joined a corporate law firm, Shirley noticed that most of its leaders were white men. And when she left a decade later, little progress on the leadership team’s diversity had been made.

“I really want to see more diversity at the top, which is where it matters most,” says Shirley, now Senior Associate General Counsel, Head of U.S. IP Litigation at Gilead. “We need women, working mothers, people of color and others with diverse backgrounds in leadership positions – and to get there, everyone needs to pitch in.”

For the last two years, Shirley has been working with Keeley Wettan, Senior Vice President of Global Legal Business Partners, and other team members to shape a more diverse and inclusive future for the legal field and recently obtained Mansfield Certification for Gilead. The certification program aims to diversify leadership and increase opportunities for people who have been historically underrepresented in law firms and in-house legal departments. In addition, Gilead achieved Mansfield Certification Plus, which measures actual diverse representation within the company’s Legal Department.

“The Mansfield Certification allows us to move beyond saying we’re committed to diversity and inclusion,” says Keeley. “We’ll be able to demonstrate our work to attract, retain and promote diverse talent.”

Mansfield Certification Efforts 
The Mansfield Certification program was created in 2017, and hundreds of U.S. businesses and law firms across industries, including a small group of pharmaceutical companies, have been certified so far.

The Legal team kicked off its efforts to obtain certification in 2021, and for Keeley, part of the reasoning was personal. “I’m the mother of three girls. When they enter the workforce, I want them to see leaders that reflect society,” says Keeley.

To earn certification, an all-volunteer team at Gilead developed benchmarks and measurement systems to track hiring, promotions, career development opportunities such as speaking engagements, and roadmaps for advancement of attorneys who have been historically underrepresented. This includes women, underrepresented races and ethnicities, individuals who identify as LGBTQ+ and people with disabilities. Part of these efforts included reworking Gilead’s job application system to allow applicants to identify, if they choose, as LGBTQ+ – enabling the team to track progress made.

“This is about broadening the pipeline pool,” says Shirley. “When you see the data, it shows where you are and where you can improve.” The process was challenging and rigorous, even for companies like Gilead that have established programs focused on inclusion and diversity. For example, the program extends to outside firms that work with Gilead, requiring that at least half of the teams considered are led or co-led by attorneys who have been historically underrepresented.

Gilead Looks Ahead to a More Diverse Future 
Gilead’s Legal Department plans to continue using its newly established tracking systems to maintain and measure its progress. To bring about lasting change, the team is also focused on inclusion and retention.

“We’re continuing to make sure everyone feels comfortable being who they are,” says Shirley. “You can’t have diversity without inclusion.”

As one step, earlier this year the department held a six-session inclusive leadership training that included support for protecting psychological safety. Another program matches legal professionals with senior leaders though a sponsorship program. Leaders then advocate for their matches internally.

“It’s great to introduce folks to someone they wouldn’t necessarily have a relationship with, to learn from and to think about what they can do with their career,” says Keeley.

Although the Mansfield Certification process only applies to legal departments and firms, Gilead is committed to promoting inclusion and diversity across all of the company’s functions.

“We know that diverse workforces have a higher performance and a stronger work environment,” says Keeley. “The Mansfield Certification provides the pathway for us to chart our improvement.”

Lisa Morden, Vice President of Safety, Sustainability and Occupational Health, was recently featured in the annual Pillars of the Green Transition: COP28 Edition report. The article from Investment Reports, in collaboration with Newsweek, provides insights from more than 100 industry leaders and policymakers on the key pillars of the green transition: finance, green energy, transportation, circularity and the built environment.

In the interview, Lisa discussed Kimberly-Clark’s innovative circular business processes, our commitment to delivering on our purpose of Better Care for a Better World and how we’re addressing environmental challenges while fostering the sustainable use of resources.

Read the full COP28 edition here: https://www.newsweek.com/pillars-green-transition-cop28-edition-1846421

See Lisa’s full interview here: https://www.investmentreports.co/article/lisa-morden-head-of-sustainability-kimberly-clark-808/

About Kimberly-Clark

Kimberly-Clark (NYSE: KMB) and its trusted brands are an indispensable part of life for people in more than 175 countries. Fueled by ingenuity, creativity, and an understanding of people’s most essential needs, we create products that help individuals experience more of what’s important to them. Our portfolio of brands, including Huggies, Kleenex, Scott, Kotex, Cottonelle, Poise, Depend, Andrex, Pull-Ups, GoodNites, Intimus, Neve, Plenitud, Sweety, Softex, Viva and WypAll, hold No. 1 or No. 2 share positions in approximately 80 countries. We use sustainable practices that support a healthy planet, build strong communities, and ensure our business thrives for decades to come. We are proud to be recognized as one of the world’s most ethical companies by Ethisphere for the fifth year in a row. To keep up with the latest news and to learn more about the company’s 150-year history of innovation, visit kimberly-clark.com.

December 12, 2023 /3BL/ – New guidance from ISEAL sets out how companies and sustainability systems can credibly communicate about their work on living wages. As corporate action on living wages gathers momentum, so too does the demand for ‘living wage claims’. But, like any sustainability claims, it’s crucial that living wage claims are credible: claims that are unclear, misleading or lacking in evidence can confuse consumers, erode public trust and face the risk of legal sanctions.

In response, ISEAL – the global membership organisation for sustainability systems – has produced a framework to support good practice in this area. Making Credible Living Wage Claims offers guidance to companies, sustainability systems and other organisations to help ensure the living wage claims they make are clear, accurate, relevant and robust.

The guidance can be applied by a range of potential ‘claims-makers’ including upstream and downstream companies; standard-setting organisations and other voluntary sustainability systems; governments; and trade unions and worker representative organisations.

The framework sets out the basic foundations of credible claims-making, and looks at what organisations need to consider when making claims about specific issues like living wages. It explains the different types of commitment, action and outcome-related claims and the information needed to back them up. It includes a step-by-step guide setting out the basic foundations of credible claims-making and unpacks the issues organisations need to think about when making living wage claims – from whether to make claims in the first place, to clarifying the scope and subject, to understanding the context and audience for different types of claims. Because many organisations are involved in collaborative efforts to improve wages, the guide also explores how companies can communicate their collective and individual contributions.

Although the guidance is focused on living wages, its principles can also be applied to other types of issue-based claims.

ISEAL’s Innovations Director, Patrick Mallet, said: “A growing number of companies, sustainability systems and others are making commitments and taking action to ensure workers in supply chains earn a living wage. They want to be able to communicate the work they’re doing to customers, clients and other stakeholders. This guidance will help them to ensure the claims they make are trustworthy and help to advance living wages, which are so important for helping workers achieve a decent standard of living”.

Over the last three years, ISEAL has been working with sustainability systems to support credible supply chain action on living wages.

Credible claims-making is also an important area of focus for ISEAL: truthfulness in claims-making is one of ISEAL’s Credibility Principles, which define the core values of credible and effective sustainability systems.

Notes:

ISEAL supports ambitious sustainability systems and their partners to tackle the world’s most pressing challenges. With a focus on credible practices, it advances scalable and effective solutions that make a lasting impact. Through its work to drive collective efforts, ISEAL makes markets a force for good.

Joining ISEAL’s learning community helps sustainability systems to deliver real, lasting, positive change. ISEAL Community Members are sustainability standards and similar systems that are committed to sharing learning that advances scalable solutions and drives positive impacts. ISEAL Code Compliant organisations are ISEAL Community Members who go further, adhering to ISEAL’s Codes of Good Practice – a globally recognised framework for best practice.

Find out more about ISEAL: www.iseal.org

Explore evidence on the impacts of sustainability systems: www.evidensia.eco

NEW YORK and LONDON, December 11, 2023 /3BL/ – AccountAbility, a global ESG Consulting and Standards firm with a three-decade history in guiding leaders to build better companies, announces a joint initiative with the Global Commons Alliance Accountability Accelerator (GCAAA) and the High-Level Champions to unveil the Nature and Climate Action Resource Navigator. This innovative resource – launched at the COP28 Nature Pavilion in Expo City, Dubai – helps organizations navigate the landscape of nature and climate assessment methodologies and disclosure frameworks and surfaces leading tools that enable meaningful nature and climate action that can improve their environmental and business performance.

H.E. Razan Al Mubarak, the UN Climate Change High-Level Champion for COP28 said: “In the race to tackle climate change, nature is our strongest ally. It offers countless opportunities to build resilience and cut emissions – yet nature is under threat. Businesses and financial institutions have a vital role to play in delivering a nature-positive and net-zero economy.” 

The Navigator is an important initiative to address the urgent need for transparency and comprehensive strategies in the face of escalating environmental challenges. As businesses strive to meet sustainability goals and mitigate their impact on the planet, the Navigator can empower them with the resources needed to understand their nature and climate intersections and impacts, make more informed business decisions, track progress towards milestones and targets, and communicate effectively with stakeholders. 

“Today, global leaders across industries and geographies recognize the critical connection between Nature and Climate, and the opportunities and challenges this creates. However, the landscape of frameworks, standards, tools, methodologies, and guidance is evolving and expanding at a rate that is difficult to keep up with,” said Mr. Sunil (Sunny) A. Misser, Chief Executive Officer of AccountAbility. 

“AccountAbility is proud to partner with the Global Commons Alliance’s Accountability Accelerator (GCAAA) and the High-Level Climate Champions to develop the Nature and Climate Action Resource Navigator, which aggregates tools and resources that corporate actors and financial institutions can use to make informed decisions about their nature and climate measurement, management, and disclosure practices. Together, through this important initiative, we hope to advance our shared mission of improving business practices and performance, while delivering positive lasting impact for people and the planet.” 

Global sustainability frameworks and tools that support corporate nature and climate initiatives are evolving quickly. This can make it challenging for organizations to know where to start, where to accelerate and bolster existing efforts, or where to find resources that support their specific needs. The Navigator was created in response to this challenge, to support organizations looking to source sector- and/or use case-specific resources for materiality assessment, value chain mapping, transition planning, target setting, and a host of other applications. 

“The science-backed linkages between climate change and nature loss are established, and the need for collective action on nature and climate has never been more urgent. The Navigator brings vital rigor and clarity for organizations grappling with complex climate and nature priorities as they contribute to a more resilient and regenerative future,” says Ms. Natasha M. Matic, Ph.D., Global Commons Alliance Accountability Accelerator Executive Director. 

The World Bank estimates that the collapse of natural systems could erase US $2.7 trillion per year from the global economy by 2030. With over 25% of earth’s species at risk of permanent loss and credible net zero pathways to 1.5°C of warming increasingly in doubt, the window to achieving transformational change is rapidly narrowing. In launching the Navigator, AccountAbility, GCAAA and CCT are supporting companies and financial institutions in delivering on their nature and climate commitments and strengthening their accountability to meet corporate targets. 

Access the full Nature and Climate Action Resource Navigator here. 
  
About the Global Commons Alliance 
The Global Commons Alliance is a growing coalition of scientists, philanthropists, civil society groups, businesses, and innovators, enabling collective action to safeguard the global commons. The five key components of the Alliance include the Accountability Accelerator (a co-author of this navigator), the Science Based Targets Network, the Earth Commission, Systems Change Lab, and Earth HQ. The collective mission of the Global Commons Alliance is to mobilize citizens, companies, cities, and countries to accelerate systems change and become better guardians of the global commons. Learn more at www.globalcommonsalliance.org

About the United Nations Climate Champions Team 
The current UN Climate Change High-Level Champions for COP27 and COP28, Dr. Mahmoud Mohieldin and Her Excellency Ms. Razan Al Mubarak build on the legacy of their predecessors to engage with non-state actors and activate the ‘ambition loop’ with national governments. Their work is fundamentally designed to encourage a collaborative shift across all of society towards a decarbonized economy so that we can all thrive in a healthy, resilient, and zero-carbon world. Visit www.climatechampions.unfccc.int 

About AccountAbility 
AccountAbility is a specialist global Consulting and Standards firm that works with businesses, investors, governments, and multilateral organizations to innovate and advance the global Sustainability / ESG agenda by improving the practices, performance, and impact of organizations. The firm focuses on delivering practical, effective, and enduring results that enable our clients to succeed. AccountAbility is a Public Benefit Corporation, operating globally through a highly qualified team from offices in New York, London, Riyadh, and Dubai. The firm is the recipient of multiple business awards from the Financial Times, Forbes, and Capital Finance International, and its website is archived with the United States Library of Congress. Learn more at www.accountability.org. 

Contact: 
Mr. Jon Packer, 
AccountAbility 
Head of Marketing & Communications 
Phone: +1 646 507 5900 
Email: jon.packer@accountability.org 
Web: www.accountability.org

December 11, 2023 /3BL/ – The latest COP28 draft agreement published today falls fatally short of what the climate and economy demand: a phase out of unabated fossil fuels.

Ceres CEO and President Mindy Lubber, said:

“While we appreciate the goal to preserve an orderly process for reducing the use of fossil fuels, climate change is not “orderly” and the scale of weather, water, fire, and other impacts on nature, people, and our economies have been catastrophic over the past few years. The time is now for clear, ambitious action by governments, corporations, and investors. There can be no ambiguity—we must phase out unabated fossil fuels.

We applaud the progress made at COP28, including the renewed commitments to renewable energy and sustainability, but we are deeply concerned that the draft agreement text uses the conditional term “could,” which does not reflect the level of urgency demanded by the global climate crisis. The final agreement must call on all countries to move away from fossil fuels and invest in job-creating, cost-saving clean energy technology.

The COP28 draft agreement also lacks specificity and leaves open the potential for procrastination by countries, companies, and industries. We need well-defined interim steps that can act as benchmarks, ensuring a more accountable and measured approach towards net zero goals. These interim measures will be essential in maintaining momentum and preventing complacency in the face of our pressing global sustainability threats that necessitate urgent and concrete actions.”

At COP28, more than 200 companies, collectively generating more than $1.5 trillion in global annual revenue, called on world leaders to phase out unbated fossil fuels, and last year, 600 investors with more than $42 trillion in assets under management called on governments for policies to support a phase out of fossil fuels. In an op-ed recently published in Triple Pundit, Ceres’ Andrew Logan, wrote: “This united front of investors and companies underscores the wide-ranging support for an impactful agreement at COP28. They’re advocating not only for the phased elimination of fossil fuel usage in line with the push to cap global temperature rise at 1.5 degrees Celsius above pre-industrial levels, but also for ambitious targets to triple renewable energy capacity and double energy-efficiency rates by 2030.”

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

Fortifying buildings for health has become a major priority as the building sector is confronted by a range of vulnerabilities from indoor air quality to extreme heat

“There is no planetary health and no human health separately. Both of them go hand-in-hand. We know the balance between them, and we understand that outcomes that are delivered by one benefit the other and vice versa.” This opening statement by Adhishesh Sood, Business Development Manager – Global Strategic Partnerships, Sustainable Building Technologies, Honeywell, set the stage for a provocative and practical conversation on a critical yet often overlooked imperative that is emerging — the need for buildings that are fortified for sustainability and health.

During the webcast, Climate Change Demands Healthier and More Sustainable Buildings, which was co-hosted by IWBI and BuildingAction, Sood shared his unique expert perspective on what’s happening in markets around the world, as well as the role technology and innovation play to help the building sector achieve success across ambitious climate and health goals.

Alongside Honeywell, building industry experts engaged in a discussion on how leaders from across real estate, both commercial and residential, along with leading organizations in the design, engineering and construction industries, and building owners and operators, can move quickly to help support the well-being of the people inside their buildings, while supporting sustainability goals, especially when confronted by these new (yet predictable) vulnerabilities.

As the world turns its attention to the negotiations taking place now in Dubai at the UN Climate Change Conference – COP28 – the questions posed during the webcast remain relevant: what does this all mean for buildings, all the places that, first and foremost, need to protect occupants and keep them safe? Are they ready? Are they prepared? Many buildings — of all types, all sizes and in every part of the world — will now face numerous new, unanticipated pressures, sometimes with devastating effects to property, but also to health.

In his remarks, Russ Carnahan, BuildingAction Co-Founder and Former U.S. Representative (D-MO), shared that during his tenure in the House it was remarkable “how often buildings were not even mentioned…in terms of addressing sustainability, climate and energy issues. And as we all know, you can’t have a serious conversation about global or national sustainability or energy, if you don’t talk about buildings.” As a longtime champion for better buildings and legislation that focused on making them safer, healthier and more sustainable, the former Congressman advocated for partnership between the public and private sectors, which he believes affords a great combination of action, ideas and innovation that can make a remarkable difference when addressing both climate change and public health.

Kevin Kampschroer, Chief Sustainability Officer and Director, Office of Federal High-Performance Green Buildings, General Services Administration – the largest landlord in the United States – highlighted the evolution of the movement to create more sustainable, more resilient, healthier buildings. Starting from an original focus on Sick Building Syndrome, the industry now recognizes how buildings can be influential in ways that support “not just the absence of sickness, but the presence of positive health” of the people inside – from improved sleep patterns to better cognitive abilities. How can buildings be a part of the community? How can they be places of refuge? These types of positive interventions do not need to be expensive, he noted, they are simply a new way of doing things.

As part of the recognition of the health impacts of buildings, many in the global real estate sector are working to support rapid decarbonization, widespread adoption of energy efficiency solutions and other carbon reduction strategies.

According to Kampschroer, the process of electrification and decarbonization of buildings is the next frontier and “a multi-trillion dollar issue for the globe.” The industry must not only modernize our buildings, but also prepare the grid for these changes. Thus far, “the steps have been too small and too slow. We need to take bigger steps and start running,” he said.

Sood agreed with the sense of urgency and brought in the technology angle, stating, “There is a lot of concentration on the profitability of buildings…You don’t have to sacrifice one for the other. The tradeoff is not a given” and it is possible to implement technology efficiencies in terms of lighting, HVAC systems and occupancy levels.

That same sense of urgency also applies to climate resilience. When it comes to grid electrification and resilience, as well as bringing on more electric vehicles, systems such as battery energy storage can help with carbon reduction. These steps, too, must be fast according to Sood, and we must continue to take a holistic approach to sustainability, energy efficiency, health and other social elements in buildings.

“Our problems are multifaceted, so our solutions have to grapple with multiple issues. The climate resilience solutions are also human health resilient solutions,” added Jason Hartke, Executive Vice President, External Affairs and Advocacy, IWBI.

From IWBI’s perspective, the WELL Building Standard provides a framework for translating research into practice that allows us to share with our community the strategies and solutions that prioritize people’s health and well-being, including in the context of these climate change-driven health impacts. It’s why we created alignments with leading green building rating systems to better recognize projects that share a commitment to environmental sustainability with a commitment to human health.

In 2023, IWBI and the U.S. Green Building Council (USGBC) released a streamlined process for projects pursuing certifications under the LEED green building rating system and the WELL Building Standard. This new process creates an opportunity for organizations to apply an integrated approach to health and sustainability, transforming how they unite stakeholders and make key business decisions. Within a matter of months, hundreds of projects enrolled representing more than 100 million square feet of space. USGBC and IWBI aim to continue to expand shared efforts across several other priorities, including social equity, sustainable finance and advocacy – helping to drive efficiencies that can address the sustainability and health-related pressures and vulnerabilities associated with a changing climate.

View the complete webcast recording on-demand: Climate Change Demands Healthier and More Sustainable Buildings.

View original content here.