Business & The Environment

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Hans Jôhr. Nestlè. Corporate Head of Agriculture.Foto:  Toini Lindroos

Creating Shared Value at Nestlé

Hans Joehr, Nestlé’s corporate head of agriculture, is responsible for providing technical and strategic leadership for Nestlé’s worldwide agricultural material supply chain. One of the ways Nestlé accomplishes its goals is by providing agricultural “extension services” for the hundreds of thousands of rural farmers who are its suppliers. It’s all part of the company’s Creating Shared Value (CSV) approach to business, a process that seeks to create value for shareholders while also ensuring the company creates value for the communities in which they operate.

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Sustainability? Don’t Go It Alone

At the Sustainable Brands seventh annual community in June, a key theme was succinctly framed by Sally Uren, acting chief executive, Forum for the Future: “pioneering companies are hitting the limits of what they can do alone.” To address sustainability-related issues, a growing number of companies are becoming more collaborative. Not merely with suppliers, but with competitors as well. The complexity of business problems connected with sustainability is demanding collective action.

David Bresch

Insuring a Better Future: Sustainability at Swiss Re

As climate change progresses, the risk of financial and personal losses related to extreme weather events such as hurricanes, tornadoes, floods, heat waves, and droughts grows greater. Insurers and reinsurers must take these risks seriously, and for some companies, that means advocating strategies to help business and society mitigate the effects — and reduce the causes — of climate change. MIT Sloan Management Review’s Nina Kruschwitz spoke with David Bresch, Head of Sustainability at Swiss Re, about his company’s efforts to address the complex problem of climate change risk.

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Mitigation or Adaptation? Lessons from Abolition in the Battle Over Climate Policy

Although both mitigation and adaptation are needed to address climate change risks, says MIT professor John Sterman, adapting to climate change may be taking resources that could be better spent on mitigation and prevention. We have the ingenuity to successfully tackle this complex issue, and can look at the lessons learned from the abolition of slavery to help guide us.

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Choosing the Right Eco-Label for Your Product

With over 435 eco-label programs worldwide, how can companies avoid betting on the wrong one? Authors Magali A. Delmas (UCLA Anderson School of Management), Nicholas Nairn-Birch (U.S. Environmental Protection Agency) and Michaela Balzarova (Lincoln University) detail a three-part framework for companies to use. The framework evaluates eco-labels along three dimensions: consumer understanding and awareness, consumer confidence and willingness to pay.

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A View from the Peak: Balancing Our Carbon Budget

Earlier this year, the financial services company HSBC came out with a report in which their analysts calculated that taking climate change seriously could cut share prices of major oil companies by up to 60%. That report, Peak Planet: The next upswing for the climate agenda, held some sobering news for business. Now that it has been made freely available on the company’s website, executives concerned with managing risks may want to read it.

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Managing Risks, Creating Opportunities from Ecosystem Change

Most businesses depend on ecosystem services somewhere in their supply chain. Most don’t fully recognize the risk that environmental degradation poses to business. However, the Corporate Ecosystem Services Review 2.0 tool offers a 5-step process that helps managers develop strategies to deal with the risks — and opportunities — that develop from ecosystem changes.

Andy C Wales

A New Mix: More Sustainable Beer from Better Water Practices

It’s only natural that a beer company would be concerned about water. It takes five liters of water, on average, to manufacture one liter of beer. When SABMiller mapped its water footprint and found that it took 45 liters of water to produce one liter of its beer in the Czech Republic, and 155 liters in South Africa, the company changed its water practices to make its beer more sustainable. An interview with SABMiller’s senior vice president of sustainable development explains how they did it.

Image courtesy of Official U.S. Navy Imagery/Flickr.
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Designing for Resilience

Designing for resilience can ensure that critical systems continue to operate despite increasing threats. The focus of any organization concerned with resilience should be on whatever assures the continuity of business operations and the systems in which they’re embedded. By defining a critical system — its components, boundaries, and functions — managers can begin to use “what-if” scenarios to determine which components, or combination of components, are most vulnerable.

Robin Chase

How Next-Gen Car Sharing Will Transform Transportation

In communities where residents can join networks to share cars, people save money, emissions go down, parking spaces free up, and companies doing the coordinating make money. In this conversation with former Zipcar CEO Robin Chase she talks about her new venture, Buzzcar, another car-sharing business. The company calls this peer-to-peer car rental, and has taglines that include “Borrow the car next door” and “fewer cars, more options & the money stays in the ‘hood.’”

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What the Future May Bring

Many authors writing about the future dismiss contrary opinions, striving with provocative titles such as The End of History and the Last Man (by Francis Fukuyama) or The Singularity Is Near: When Humans Transcend Biology (by Ray Kurzweil) to persuade readers that the future they envision is not only plausible but inevitable. Jorgen Randers foregoes this temptation in his new book, 2052: A Global Forecast for the Next Forty Years (White River Junction, Vermont: Chelsea Green Publishing, 2012).

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A Future of Uncontrolled Decline?

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The planet’s focus today should be on resiliency rather than on sustainability, says Dennis Meadows, one of the original authors of the 1972 book Limits to Growth. That book was one of the first scholarly works to recognize that the world was approaching its sustainable limits.

Image courtesy of Flickr user World Economic Forum.
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What Environmental Ratings Miss

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Given the sparkle that environmental rankings lend to high-ranking companies, they should take into account a business’s advocacy activities to influence environmental regulation in addition to the business’s internal operations, argue Auden Schendler of the Aspen Skiing Company and Michael Toffel of Harvard Business School.
Christian Rynning-Tønnesen, President and CEO of Statkraft

The Power to Adapt: Building One of the World’s Largest Renewables Power Producers

The ability to create strategies and adapt to changing conditions quickly is critical for maintaining a competitive edge, says Christian Rynning-Tønnesen, the CEO of Statkraft, one of the largest power producers in the world. Building the organizational structures to support that demands shared values and solid management.

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Showing 21-40 of 61