Tag: 3BL

Next generation of professionals challenged to develop a business concept leveraging artificial intelligence in plastics value chainFinalists will present virtually to panel of judges that includes leaders in sustainability 

OAKLAND, Calif., January 21, 2025 /3BL/ – Net Impact announces its third Circular Plastics Challenge with a case prompt that encourages emerging business professionals to leverage artificial intelligence (AI) to maximize circularity in the plastics value chain.

Presented with the support of Hillenbrand, Inc. and The Coca-Cola Company, the competition calls for participants to learn about the modern plastics value chain while developing AI-supported business models to maximize circularity at any point within the value chain (pre-consumer, during consumer use, or post-consumer). Final submissions are due in April, and in June, five finalist teams will present their concepts virtually to a panel of judges that includes plastics industry and sustainability leaders. The first-place team will be awarded $5,000, followed by $2,500 for second place and $1,000 for third place.

“We love this program because it enables our responsible business-oriented community to think critically about how to leverage the latest technology like AI for sustainable applications in the corporate context,” Karen Johns, CEO of Net Impact, said. “With so much growth around artificial intelligence, this will be a wonderful opportunity for our community to learn and explore this topic in tangible terms.”

Net Impact and Hillenbrand, a leading global provider of highly-engineered processing equipment and solutions, developed the Circular Plastics Challenge concept in 2022 to foster innovation and champion sustainability. The first competition was held in 2023 to engage future leaders in developing industry-shifting ideas to keep plastics in the economy and out of the environment. In 2024, finalists presented concepts during a virtual showcase at NPE2024, a tradeshow produced by the Plastics Industry Association (PLASTICS) that drew more than 50,000 attendees from over 110 countries. In the program’s first two years, teams representing dozens of countries around the world have submitted more than 115 proposals.

Net Impact facilitates the competition by bringing together its global network of social impact and sustainability leaders to address the challenge. With more than 130,000 members across over 300 chapters at colleges, universities, and local communities worldwide, Net Impact aims to address social challenges, protect the environment, develop new concepts and approaches, and leverage the tools of business toward the greater good.

“Plastics are essential to today’s global economy, and it is important that we continue to advance the material through the entire value chain. As we incorporate AI into this year’s competition, I believe we can unlock new possibilities in advancing plastics circularity,” said Kim Ryan, President and CEO of Hillenbrand. “This partnership with The Coca-Cola Company and Net Impact continues to foster innovation and engage the next generation of the plastics industry.”

In the competition’s inaugural year, participants were challenged to design solutions to keep plastics in the economy and out of the environment by using upstream innovation to reduce plastic leakage. The winning team was Ashaya, an India-based startup that is turning post-consumer multi-layer plastics, typically found in packets of chips, into new products such as recycled sunglasses. In 2024, participants were tasked with designing concepts to increase the supply of rPET, or recycled polyethylene terephthalate. The winning team, Strong Bottle, proposed a redesign of bottles intended to prevent flattening during the recycling process, which in turn could result in a 15% increase in PET collected during the recycling process.

More information about the Circular Plastics Challenge, including participant applications and previous winners, can be found at netimpact.org/programs/circular-plastics-challenge.

About Net Impact 
Over 30 years Net Impact has built a diverse community in 40+ countries committed to using business to advance social and environmental action. Net Impact mobilizes its global community of more than 100,000 emergent change agents to leverage their careers to drive transformational environmental and social change. Through a strategic set of initiatives aimed to engage and benefit its core stakeholders, Net Impact is committed to advancing climate action and building the capacity of the next generation of workforce members. Visit www.netimpact.org.

About Hillenbrand 
Hillenbrand (NYSE: HI) is a global industrial company that provides highly-engineered, mission-critical processing equipment and solutions to customers in over 100 countries around the world. Our portfolio is composed of leading industrial brands that serve large, attractive end markets, including durable plastics, food, and recycling. Guided by our Purpose — Shape What Matters For Tomorrow™ — we pursue excellence, collaboration, and innovation to consistently shape solutions that best serve our associates, customers, communities, and other stakeholders. To learn more, visit www.Hillenbrand.com.

About The Coca-Cola Company 
The Coca-Cola Company (NYSE: KO) is a total beverage company with products sold in more than 200 countries and territories. Our company’s purpose is to refresh the world and make a difference. We sell multiple billion-dollar brands across several beverage categories worldwide. Our portfolio of sparkling soft drink brands includes Coca-Cola, Sprite and Fanta. Our water, sports, coffee and tea brands include Dasani, smartwater, vitaminwater, Topo Chico, BODYARMOR, Powerade, Costa, Georgia, Gold Peak and Ayataka. Our juice, value-added dairy and plant-based beverage brands include Minute Maid, Simply, innocent, Del Valle, fairlife and AdeS. We’re constantly transforming our portfolio, from reducing sugar in our drinks to bringing innovative new products to market. We seek to positively impact people’s lives, communities and the planet through water replenishment, packaging recycling, sustainable sourcing practices and carbon emissions reductions across our value chain. Together with our bottling partners, we employ more than 700,000 people, helping bring economic opportunity to local communities worldwide. Learn more at www.coca-colacompany.com and follow us on Instagram, Facebook, and LinkedIn.

CONTACT:

Net Impact 
Hilary Manzo, Associate Director of Programs 
Phone: 415-495-4230 x369 
Email: hmanzo@netimpact.org

TAIPEI, Taiwan, January 21, 2025 /3BL/ – Federal Express Corporation (FedEx), one of the world’s largest express transportation companies, has recently partnered with the Society of Wilderness (SoW) to tackle water resource challenges. As part of this initiative, FedEx encouraged team members and their families to join a riverside cleanup along the Touchian River in Hsinchu. After several hours of dedicated effort, the team successfully removed nearly 181 kilograms of waste. This accomplishment highlights the strong commitment FedEx has for environmental stewardship and its positive contribution to Taiwan’s ecological sustainability.

The Touchian River, which plays a critical role in the Greater Hsinchu area, was selected for the cleanup due to its importance in supplying over 90% of the local water, supporting agriculture, sustaining livelihoods, and being essential for the operations at the Hsinchu Science Park. Notably, Taiwan’s high-tech sector, which relies heavily on electronic components—its largest export in 20231—benefits significantly from this water resource.

“FedEx is committed to fostering sustainable development in the communities we serve and supporting local environmental conservation efforts,” said Michael Chu, managing director of FedEx Taiwan. “The Touchian River is a vital resource for the Hsinchu area, and our ongoing partnership with the Society of Wilderness underscores our dedication to environmental stewardship and corporate social responsibility. We are committed to enhancing Taiwan’s ecological environment, growing alongside local communities, and pursuing a more sustainable future through our actions.”

“A clean river is the key to a blue sea,” said Liu Yueh-Mei, Honorary Chairperson of the Society of Wilderness. “We are excited to collaborate once again with FedEx, focusing on Taiwan’s water resources. According to the results of these two riverside clean-up events, the most common debris were plastic bottles, plastic bags, and disposable utensils. This emphasizes the importance of reducing plastic usage and reminds us to minimize the reliance of single-use products from everyday activities to achieve environmental sustainability. Additionally, numerous large waste items were discovered in the streams, highlighting the urgent need to prevent dumping trash or wastewater into our waterways to preserve their cleanliness. The Society of Wilderness eagerly anticipate more companies, organizations, and individuals, like FedEx, to join in protecting our land, rivers, and oceans, for a cleaner, sustainable future.”

In addition to organizing two cleanup events on December 14 and 28, 2024, FedEx partnered with the Society of Wilderness to hold an environmental education seminar titled “For Blue Seas, Start with Clean Streams.” This initiative aimed to explore the beauty of Taiwan’s aquatic and marine environments while educating team members on the importance of protecting the natural world. Through these hands-on cleanup events and educational seminars, FedEx team members are inspired to incorporate sustainability into their daily lives, particularly by reducing the use of disposable plastic items. FedEx actively supports sustainable practices, collaborating with local NGOs to promote environmental sustainability and foster a virtuous cycle.

1https://www.ey.gov.tw/state/6A206590076F7EF/8b5032af-1a67-4c02-bd16-8791aa459cd2

Click here to learn about FedEx Cares, our global community engagement program.

MilliporeSigma, the U.S. and Canada Life Science business of Merck KGaA, Darmstadt, Germany, revolutionized its approach to packaging sustainability with its SMASH Packaging initiative. Building on the program’s success since its original launch in 2019, the company introduced SMASH 2.0 last year. SMASH 2.0 is an updated packaging sustainability framework to optimize its implementation across the organization, with new targets set for 2030.

Highlighted below are three packaging projects from the Milwaukee, Wisconsin, distribution center, one of the company’s largest distribution centers in the United States:

“Packaging for Smalls”: This project minimizes the packaging dimensions for shipping small products like small vials. The change is anticipated to impact approximately 1,000 shipments daily, reducing cardboard usage by up to 61% per box. This will lead to a total annual reduction in shipping weight of 60 metric tons.Air Pillow Replacement: A switch was made to plastic air pillows made of 95% recycled content, reducing the amount of virgin plastic in the company’s supply chain, affecting 56 metric tons of plastic every year.Deforestation-Free Packaging: The Milwaukee site uses an estimated 3,800+ metric tons of fiber-based packaging per year. The site has made significant progress, with 83% of fiber materials that meet the company’s deforestation-free requirements. This year, two projects are in progress that add sustainable forestry certification to over 300 metric tons of material, bringing the Milwaukee site to 91% alignment of responsibly sourced fiber materials. These deforestation-free requirements not only include fiber material certifications, but also include the use of recycled fiber materials, which contribute to this measurement.

To learn more about MilliporeSigma’s SMASH Packaging plan and progress, visit the company’s Sustainability & Social Business Innovation webpage.

Takeaways

Open source AI is transforming healthcare outcomes by enabling important innovations in medical technology and healthcare research.Researchers have used models like Llama to improve the accuracy of radiological diagnostic tools, match patients with clinical trials and more.With more equitable health outcomes estimated to lead to nearly $3 trillion in GDP growth, open source AI drives economic growth as well as healthcare innovation.

Open source AI models like Llama are available for free for organizations to use, modify and build on, making this critical technology more accessible than commercial models.

As a result, open source is enabling important innovations in medical technology, healthcare research and related sectors, helping researchers make crucial advancements to solve intractable problems.

Developers, researchers and other professionals can download and fine-tune the models on their own devices. That they don’t need to send their data back to the AI model providers strengthens control and security over private health data – critical factors for highly regulated industries like healthcare. The stakes here are not only scientific but economic, with improved health outcomes across communities estimated to add $2.8 trillion to US GDP by 2040.

Here are a few stories from companies who are using Llama’s open source technology to create a healthier future.

Zauron Labs

Zauron Labs’s Guardian AI double-checks radiological imaging exams and reports to find errors, helping to improve healthcare outcomes. “People don’t realize that there are around 3 billion medical imaging exams done per year with a 3-5% error rate,” says radiologist Dr. Kal Clark. “That’s millions of patients.”

When such errors occur, proper treatments can be delayed, illness and suffering can linger, and patients may experience worse long-term health outcomes. Open source AI models have the potential to substantially reduce those errors.

“With Meta’s Llama, we’re able to collaborate with universities and build the Guardian AI tool to double check for errors. It’s like a spell checker for radiologists,” says Dr. Clark, Vice Chair of Informatics at University of Texas Health San Antonio and co-founder of Zauron Labs.

Llama has enabled Zauron Labs to open up development across health systems, so that developers can “layer on” multiple algorithms to check for numerous medical issues at once as part of regular quality and safety exercises, amplifying the tool’s usefulness for patients and practitioners.

Mendel

Mendel’s Hypercube is an AI platform that helps health and science organizations draw insights from patient data using a chat-like tool built on open source AI, including Llama.

Applications for Hypercube include trial matching and patient cohorting, which are important: around 80% of clinical trials fail to meet their enrollment targets today, slowing the discovery of new treatments. “Studies have shown that it takes hundreds of days to match patients with a clinical trial. Hypercube can do it in one day,” says Dr. Wael Salloum, Founder and Chief Science Officer at Mendel.

Open source AI gives companies access to what Dr. Salloum calls “breakthrough technology.” “Using Meta’s open source AI, Llama, Hypercube allows health care companies to organize their data on their own cloud, creating a secure and searchable knowledge base.” adds Dr. Salloum.

With Llama, Mendel’s Hypercube can be used to extract reliable information from patient records at scale.

We have witnessed a rapid increase in the adoption of sustainable and energy-efficient technologies. For example, global sales of electric vehicles have surged from 1 million to over 10 million in the last five years, indicating a growing demand from consumers for sustainable transportation options. At the same time, demand for energy is expected to double in the next few years as a result of AI and other advanced technologies.

As a leading global climate innovator, our businesses and brands play a direct role in influencing greenhouse gas emissions. Our next significant opportunity to further climate action lies in the electrification of buildings and the cold chain. Achieving this goal will require us to rethink our approach to energy supply and demand by developing optimized systems supported by AI-driven automation and connected to clean energy sources in the most efficient configuration.

Guided by our Gigaton Challenge, a pledge to reduce our customers’ emissions by one gigaton, or one billion metric tons, by 2030, we are helping our customers transition to more sustainable solutions. Buildings are responsible for more than 30% of global emissions, with transport responsible for another 20%. Trane Technologies is decarbonizing the sectors responsible for more than half of the world’s emissions. The great news is that the technology exists today to significantly decarbonize the built environment. Our big idea is simple: It’s about capturing waste heat and redirecting it where it’s needed. Combining heating and cooling—with sophisticated controls—in a thermal management system can be 3-4 times more efficient than traditional methods. It saves money and reduces emissions. That’s why we’ve launched the Trane® Thermal Battery™ Storage-Source Heat Pump System – a first-of-its-kind solution that uses thermal energy storage ice tanks, air-to-water heat pumps, electric chiller-heaters, and intelligent controls to advance electrified, low-carbon heating in buildings.

In the transport sector, our new Thermo King® all-electric Advancer trailer refrigeration unit can adapt to a variety of power sources, including axle power, and operates with zero direct emissions. We deliver end-to-end connected, active temperature-controlled transport and temporary storage solutions across the entire cold chain: whether by air, ocean or land.

As an industry leader and disruptor, we know that innovation is powered by the ingenuity of our people. So, we are investing in innovative ways to recruit, develop and retain talent that will help drive the future. In 2023 we launched our Technician Apprenticeship Program, accredited by the U.S. Department of Labor, and have embraced a skills-forward approach to hiring. Our Operation Possible initiative, through crowd-sourcing and crowd-solving, allows our employees to bring diverse skill sets to brainstorm, give feedback, and develop solutions to global challenges with real-world applications.

To challenge what’s possible, we also have to challenge our own assumptions. We know that reversing the detrimental effects of climate change requires transformative innovation. By helping consumers and business leaders see the opportunity for innovation in our buildings, our transport and our workforce, we can take real action on climate in ways that are sometimes overlooked.

This article was originally published by Joules Accelerator, the largest climate technology incubator in the southeast. It has been adapted for the Trane Technologies blog.

CLEVELAND, January 21, 2025 /3BL/ – KeyBank Community Development Lending and Investment (CDLI) provided a $15.5 million construction loan, a $3.18 million permanent loan and $17.7 million in low-income housing tax credit (LIHTC) to finance the new construction of The Grand and The Glen, a scattered two site workforce affordable housing project in Toledo, OH.

The Grand and Glen will introduce 70 affordable family units to a vacant city-owned parcel and an underutilized parking lot. The project will target families with income levels between 50%, 60%, and 70% AMI levels.

The Glen is a 50-unit four story building at the Southland Shopping Plaza. The Grand will be 20 townhomes at the corner of Detroit and Grand avenues. Both locations boast proximity to downtown Toledo, The University of Toledo Medical Center, and numerous major employers and sought-after amenities. The project will offer a mix of one- and two-bedroom apartments and three- and four-bedroom townhomes. All units prioritize thoughtful design, energy efficiency, and accessibility. Moreover, the development will encompass modern amenities, enabling residents to comfortably age in place. This scattered-site development aims to diversify housing options, rejuvenate vacant or underutilized parcels, and inject approximately $28 million of investment into the City of Toledo

The sponsor, Pivotal Housing Partners, is a top ranked Ohio-based multifamily developer and property management company with LIHTC properties operating in 16 states including Ohio, Indiana, Michigan, Illinois, Iowa, Missouri, Kansa, Oklahoma, Texas, Tennessee, Georgia, Kentucky, West Virginia, Pennsylvania, North Carolina, and most recently, New York.

Derek Reed and David Lacki of KeyBank CDLI structured the financing for the transaction.

About KeyBank Community Development Lending and Investment

KeyBank Community Development Lending and Investment (CDLI) finances projects that stabilize and revitalize communities across all 50 states. As one of the top affordable housing capital providers in the country, KeyBank’s platform brings together construction, acquisition, bridge-to-re-syndication, and preservation loans, as well as lines of credit, Agency and HUD permanent mortgage executions, and equity investments for low-income housing projects, especially Low-Income Housing Tax Credit (LIHTC) financing. KeyBank has earned 11 consecutive “Outstanding” ratings on the Community Reinvestment Act exam, from the Office of the Comptroller of the Currency, making it the first U.S. national bank among the 25 largest to do so since the Act’s passage in 1977.

About KeyCorp

KeyCorp’s roots trace back nearly 200 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation’s largest bank-based financial services companies, with assets of approximately $190 billion at September 30, 2024. Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 1,000 branches and approximately 1,200 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank Member FDIC. 

###

CONTACT :
Laura Mimura
216-471-2883
Laura_J_Mimura@KeyBank.com

KEY MEDIA
NEWSROOM: Key.com/newsroom

We hope this issue of our newsletter brings a sigh of relief amid all the other news coming your way as 2025 begins. While many trends in climate change and sustainability action are worrying, the good news is that governments around the world continue to move regulations forward in ways that could have positive impacts across ESG topics and issues.

Recent news from Australia, Canada, and China point to a broad move towards requiring companies to report more corporate emissions and related sustainability disclosures. Most notably, in 2025 the Corporate Sustainability Reporting Directive (CSRD) will take effect not only for EU-listed companies but all companies headquartered anywhere with operations in the EU that meet 2 of 3 criteria (more than 250 employees, +€50 million in annual turnover, +€25 million in total assets).

Similarly, any company with total annual revenues greater than $1 billion that does any business in California will be subject to climate disclosure requirements once the State’s rule is finalized. Even without such requirements, ESG News highlights a study finding that around the world, 85% of executives planned to disclose GHG emissions because of what is viewed as the financial benefits of integrated reporting.

The U.S. offered more sources of hope with a Supreme Court decision that will allow communities to sue oil and gas companies for damages stemming from climate change.

The outgoing Biden Administration announced the U.S.’ nationally determined contribution towards achieving the goals of the Paris Agreement by setting a 2035 target of cutting GHG emissions by 61-66% from a 2005 baseline. And the U.S. Environmental Protection Agency approved a state-level ban on selling gas cars, which will start in 2035 in California. In New York, the governor signed legislation requiring fossil fuel companies to fund projects to help communities adapt to climate change, following a similar law in Vermont.

In addition to these governmental moves in support of expanded corporate reporting and accountability, companies continue to voluntarily undertake sustainability reporting and action, which have become widely accepted best practices. G&A Institute’s latest research shows substantial increases in sustainability reporting for both large-cap and mid-cap U.S. public companies in 2023. A record 93% of Russell 1000 companies published a sustainability report that year, driven by increases in the smaller half of the index by market cap.

Corporate sustainability leadership examples abound heading into 2025, and we will continue to spotlight these in our newsletter. Costco has made the business case for diversity in the face of anti-DEI pressure. LEGO made progress on its sustainable packaging goals. Aldi announced plans to eliminate hydrofluorocarbons by 2035, replacing them with natural refrigerants and building improvements to prevent food spoilage. And over 500 companies and financial institutions have committed to begin nature-related corporate reporting by 20

As we monitor the positive steps taking place around the globe at the dawn of 2025, the G&A team is available to help your company navigate its sustainability journey. Please reach out to us at info@ga-institute.com if you would like to discuss how our expert team’s support can help you meet the challenges and opportunities in 2025 and beyond.

This is just the introduction of G&A’s Sustainability Highlights newsletter this week. Click here to view the full issue.

Read the 2024 Wesco Sustainability Report here

Cybersecurity and Data Protection

Cybersecurity and data protection is an enterprise wide priority and is reflected in engagements with our customers and suppliers. Our comprehensive approach to securing our data and business systems from attack, compromise, or loss includes a combination of leading technologies, policies and procedures and a 24/7 cybersecurity operations team monitoring our environment for signs of attack and responding in real time.

We conduct mandatory information security awareness training for our employees at least annually and enhanced training for specialized personnel. We have instituted regular attack or malicious activity simulations for employees to enhance awareness and responsiveness to such possible threats, and we also employ third parties to perform penetration and vulnerability tests.

Our security policies are evaluated and updated annually to address changes in the regulatory and threat landscapes and evolving best practices. We identify potential cybersecurity risks using internal measures and external resources. Identified risks are captured and prioritized on our risk register. Results are regularly reported back to a cross-functional, executive cybersecurity risk committee which then validates risks. While we focus heavily on prevention and detection, response and recovery plans, service agreements and partner engagements are in place should there be a need for us to respond to an attack. We have adopted a security incident response plan that provides controls and procedures for timely and accurate reporting of material cybersecurity incidents. We also maintain cyber liability insurance coverage.

To more effectively prevent, detect and respond to information security threats, we have a dedicated Chief Information Security Officer whose team is responsible for leading enterprise-wide information security strategy, policy, standards, architecture and processes. As part of its oversight of cybersecurity risk, the Audit Committee of our Board of Directors meets at least quarterly with our Chief Information Security Officer, Chief Information and Digital Officer and other senior leaders to receive updates on cybersecurity risks and threats, the status of initiatives to strengthen our information security systems and management’s assessments of our security program. Wesco has achieved ISO 27001 certification for its Information Security Management System.

With these security measures in place, we did not experience any material data breaches in 2023. We also finalized our planned three-year infrastructure and security integration between Wesco and Anixter, making significant progress in Zero Trust configuration and data loss prevention implementation.

To learn more, download the 2024 Wesco Sustainability Report here.

About This Report

Unless otherwise stated, this report covers activities, data and initiatives from our fiscal year 2023.

ESG Disclosure and Framework Alignment

The topics covered in this report include those that we have determined to be material for our business and stakeholders as noted on page 12. Wesco aligns with several ESG frameworks and disclosures in support of our commitment to transparency and our fulfillment of stakeholder needs and expectations. We leverage the following frameworks and standards to provide robust ESG information disclosure:

Global Reporting Initiative (GRI): GRI offers a list of global standards and guidelines around sustainability reporting.Sustainability Accounting Standards Board (SASB): SASB provides a comprehensive set of industry-specific disclosure topics and guidelines.Task Force on Climate-Related Financial Disclosures (TCFD): TCFD provides disclosure recommendations on thematic ESG topics such as governance, strategy, risk management, metrics and targets to provide stakeholders with fuller information surrounding climate risks.CDP: Formerly the Carbon Disclosure Project, CDP is an international organization that helps companies and cities measure and disclose important environmental impact information through an annual questionnaire and rating system.United Nations Global Compact (UNGC): UNGC is an initiative that aims to help businesses align their strategies and work toward the U.N.’s Sustainable Development Goals.United Nations Sustainable Development Goals (U.N. SDGs): U.N. SDGs provide a shared set of 17 toward peace and prosperity for people and planet goals and create a call to action by all countries in a global partnership.

We also regularly engage with our investors, employees, customers, regulators, ratings agencies and others on ESG and business issues. Additional information about Wesco can be found in our public financial filings—including our annual report and proxy filings—as well as on the Security and Exchange Commission’s website at www.sec.gov or on the Investors page of our website at Wesco.com.

Wesco plans to continue to report annually as we monitor, measure, and deepen our ESG initiatives and disclosures.

Wesco endorses the United Nations Sustainable Development Goals (SDGs), which are a call to action to end poverty, protect the planet, and ensure that all people enjoy peace and prosperity.

More information about our SDG aligned initiatives is included throughout this report.

Assurance 
We did not seek third-party assurance for this report; however, we will consider doing so for future reporting. The information and data contained in this report was vetted by internal subject matter experts on the various ESG topics included in this report.

Contact Us 
We appreciate and welcome feedback on our ESG initiatives and reporting and invite you to contact us directly via email at Sustainability@Wesco.com. 

Read the 2024 Wesco Sustainability Report here

Cybersecurity and Data Protection

Cybersecurity and data protection is an enterprise wide priority and is reflected in engagements with our customers and suppliers. Our comprehensive approach to securing our data and business systems from attack, compromise, or loss includes a combination of leading technologies, policies and procedures and a 24/7 cybersecurity operations team monitoring our environment for signs of attack and responding in real time.

We conduct mandatory information security awareness training for our employees at least annually and enhanced training for specialized personnel. We have instituted regular attack or malicious activity simulations for employees to enhance awareness and responsiveness to such possible threats, and we also employ third parties to perform penetration and vulnerability tests.

Our security policies are evaluated and updated annually to address changes in the regulatory and threat landscapes and evolving best practices. We identify potential cybersecurity risks using internal measures and external resources. Identified risks are captured and prioritized on our risk register. Results are regularly reported back to a cross-functional, executive cybersecurity risk committee which then validates risks. While we focus heavily on prevention and detection, response and recovery plans, service agreements and partner engagements are in place should there be a need for us to respond to an attack. We have adopted a security incident response plan that provides controls and procedures for timely and accurate reporting of material cybersecurity incidents. We also maintain cyber liability insurance coverage.

To more effectively prevent, detect and respond to information security threats, we have a dedicated Chief Information Security Officer whose team is responsible for leading enterprise-wide information security strategy, policy, standards, architecture and processes. As part of its oversight of cybersecurity risk, the Audit Committee of our Board of Directors meets at least quarterly with our Chief Information Security Officer, Chief Information and Digital Officer and other senior leaders to receive updates on cybersecurity risks and threats, the status of initiatives to strengthen our information security systems and management’s assessments of our security program. Wesco has achieved ISO 27001 certification for its Information Security Management System.

With these security measures in place, we did not experience any material data breaches in 2023. We also finalized our planned three-year infrastructure and security integration between Wesco and Anixter, making significant progress in Zero Trust configuration and data loss prevention implementation.

To learn more, download the 2024 Wesco Sustainability Report here.

About This Report

Unless otherwise stated, this report covers activities, data and initiatives from our fiscal year 2023.

ESG Disclosure and Framework Alignment

The topics covered in this report include those that we have determined to be material for our business and stakeholders as noted on page 12. Wesco aligns with several ESG frameworks and disclosures in support of our commitment to transparency and our fulfillment of stakeholder needs and expectations. We leverage the following frameworks and standards to provide robust ESG information disclosure:

Global Reporting Initiative (GRI): GRI offers a list of global standards and guidelines around sustainability reporting.Sustainability Accounting Standards Board (SASB): SASB provides a comprehensive set of industry-specific disclosure topics and guidelines.Task Force on Climate-Related Financial Disclosures (TCFD): TCFD provides disclosure recommendations on thematic ESG topics such as governance, strategy, risk management, metrics and targets to provide stakeholders with fuller information surrounding climate risks.CDP: Formerly the Carbon Disclosure Project, CDP is an international organization that helps companies and cities measure and disclose important environmental impact information through an annual questionnaire and rating system.United Nations Global Compact (UNGC): UNGC is an initiative that aims to help businesses align their strategies and work toward the U.N.’s Sustainable Development Goals.United Nations Sustainable Development Goals (U.N. SDGs): U.N. SDGs provide a shared set of 17 toward peace and prosperity for people and planet goals and create a call to action by all countries in a global partnership.

We also regularly engage with our investors, employees, customers, regulators, ratings agencies and others on ESG and business issues. Additional information about Wesco can be found in our public financial filings—including our annual report and proxy filings—as well as on the Security and Exchange Commission’s website at www.sec.gov or on the Investors page of our website at Wesco.com.

Wesco plans to continue to report annually as we monitor, measure, and deepen our ESG initiatives and disclosures.

Wesco endorses the United Nations Sustainable Development Goals (SDGs), which are a call to action to end poverty, protect the planet, and ensure that all people enjoy peace and prosperity.

More information about our SDG aligned initiatives is included throughout this report.

Assurance 
We did not seek third-party assurance for this report; however, we will consider doing so for future reporting. The information and data contained in this report was vetted by internal subject matter experts on the various ESG topics included in this report.

Contact Us 
We appreciate and welcome feedback on our ESG initiatives and reporting and invite you to contact us directly via email at Sustainability@Wesco.com. 

Originally published by Northwestern Mutual on January 3, 2025

What is a mutual insurance company? 

A mutual insurance company is an insurance company that is owned by policyholders—the very people who purchase coverage from the company. 

How common are mutual insurance companies? According to the American Council of Life Insurers 2023 Life Insurance Fact Book, a little more than 15 percent of all life insurers doing business in the United States in 2022 (110 out of 727) were mutual insurance companies. Despite making up such a small percentage of life insurers, mutual insurance companies had $8 trillion of life insurance in force in 2022—more than half as much as the stock insurance companies that make up most insurers.

How mutual insurance companies work 

As noted above, mutual insurance companies are owned by the policyholders. These policyholders elect a board, and the board directs the management of the company and is responsible for making decisions around risk management, coverage and investment strategies. 

A mutual insurance company makes money primarily in two ways. First, it sells insurance policies and collects premiums from its policyowners. Second, it uses the premiums collected to purchase various investments, which generate additional revenue. After paying insurance claims, taxes and operating expenses, the money that is left over is profit for the company. 

Unlike shareholders of a stock insurance company, who profit through buying and selling shares in the company, a mutual policyowner benefits from purchasing a policy and reaping the insurance benefits it generates, such as death benefit coverage, cash surrender value and/or dividends. 

What kinds of insurance do mutual insurance companies offer? 
Many mutual insurance companies offer participating life insurance. An example of participating life insurance is a whole life insurance policy that pays dividends1 to policyholders when the company performs better than the assumptions it made when setting the policy guarantees. These dividends are not guaranteed and can fluctuate from year to year as performance varies. A participating life insurance policy can also be called a “with-profits policy.” 

Other types of life insurance coverage are also commonly offered by mutual insurance companies, including: 

Term life insurance. Universal life insurance. Variable universal life insurance. 

Specific life insurance riders and endorsements may also be available, depending on the company. 

Mutual insurance companies vs. stock insurance companies 

The primary difference between mutual insurance companies and stock insurance companies lies in their ownership structure. 

Unlike a mutual insurance company, which is owned by policyholders, a stock insurance company is owned by shareholders. These are individuals who purchase the company stock on an exchange. 

With a stock insurance company, policyholders do not own any portion of the company by virtue of owning a policy. They also have more limited control over the direction of the company, as it’s the shareholders who elect the board of directors. In addition, when a stock insurance company performsbetter than its assumptions, it may choose to return that excess money to shareholders rather than to the policyholders. 

When a stock insurance company needs to raise funds for whatever reason, it has the ability to issue and sell new shares of stock. This means that stock insurance companies often have more flexibility than mutual insurance companies. 

Can a mutual insurance company become a stock insurance company? 
Yes. Through a process known as “demutualization,” a mutual insurance company can become a stock insurance company. When this happens, policyholders will typically receive shares of company stock as compensation for their ownership in the original mutual company. 

How to evaluate a mutual insurance company 

Ultimately, whether one chooses to purchase life insurance from a mutual insurance company or a stock insurance company, it’s important to carefully consider the company that one buys from. Some characteristics that should guide the decision include the company’s: 

Breadth of offerings 
If an insurance company doesn’t offer the type of coverage that one wants or needs, they may cross it off their list. In addition to policy types, one should consider riders and other endorsements that they may want to add to their policy to increase or modify the coverage. 

Financial stability 
Before one purchases life insurance from any company, they want to make sure that the company is financially stable and that it will be around for the long haul. In the U.S., four ratings agencies evaluate the financial strength of insurance companies. These ratings should carry a lot of weight in the final decision. 

Customer satisfaction 
One can learn a lot about an insurance company by the way current policyholders talk about their experience. Consider seeking out customer reviews and testimonials so one knows what to expect if they move forward with a particular insurer. 

Should one choose to work with a mutual insurance or a stock insurance company? 

There are many reasons to consider buying life insurance from a mutual insurance company rather than a stock insurance company. First, because policyholders own the company instead of shareholders, mutual insurance companies are not beholden to the quarterly earnings call. This means that mutual insurance companies can focus more on long-term success and stability over short-term profits. 

Second, because policyholders elect the board, one will have much more direct control over the direction of the company than they would with a stock insurance company. 

Finally, the possibility of receiving dividends is a major consideration for many individuals who ultimately decide to purchase life insurance through a mutual insurance company. Case in point: Northwestern Mutual’s foundation of mutuality and industry-leading long-term value allows us to expect to pay nearly $8.2B in dividends in 2025 to policyholders. 

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