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Getting the Word Out: Sustainability Disclosure
Why and how companies should show that their sustainability programs are more than greenwashing.
Stakeholder groups are now attributing direct value to your company's sustainability performance: namely investors, regulators, employees, and customers. These groups are becoming ever more interested in what you are doing for the triple bottom line and ever savvier at discerning programs that are environmentally and socially responsible business from greenwashing initiatives designed to convey a false impression of strong environmental performance.
Programs like Climate Counts already rate companies across a variety of sectors on the transparency of their carbon initiatives. Somewhat more vindictive initiatives like the greenwashing index give the public a chance to comment on the authenticity of sustainability claims and call out the worst offenders who have greener claims than actions (sorry Sara Lee and Fiji Water -- ).
So how do you stay off of this worst offenders list while building value as a sustainable brand? How do you audit your sustainability programs and provide the appropriate level of disclosure to your stakeholders? The answer to these question starts, of course, with implementing programs which actually reduce your company's environmental footprint in ways which are good for your bottom line.
After performance comes communication. In this age of ever increasing corporate transparency, sustainability reporting helps your company to stay ahead of regulation requiring such disclosure, or public outrage for failing to provide such communication.
Such reporting requires more than a few fluffy paragraphs on your company website or in your annual report. A recent study by SAP and the Economist Business Intelligence Unit noted that "Corporate sustainability messaging has moved from a general statement in the annual report to a core strategy emerging from the boardroom -- [Stakeholders] favour a type of integrated reporting that permits companies to show the link between their financial performance and their social and environmental performance."
There are a number of tools available to show such a link between financial performance and social and environmental accomplishment. Let's examine two of the most widely used sustainability reporting tools:
- The Global Reporting Initiative
The Global Reporting Initiative is the most widely recognized standard for companies and organizations to report on environmental and social sustainability efforts. Modeled after financial reporting guidelines, GRI's G3 reporting framework (G4 is currently in the works) requires participating entities to state senior management's official position on sustainability and how sustainability affects organizational strategy, then report on actions across the organization related to good corporate governance, environmental initiatives, labor and decent work, product responsibility, and sector specific issues.
Well over 1.000 organizations around the world issue GRI reports, which are graded based on performance, assurance, and level of transparency. Reporting companies in Indonesia span the gamut and include:
- Astra International;
- Kaltim Prima Coal; and
- Telekomunikasi Indonesia
These reports are viewed by investors as a risk assessment tool and to determine listing on special stock indices such as the Dow Jones Sustainability Indexes. They are also reviewed by major customers as they evaluate the performance of their suppliers. Finally, potential employees may review your company's sustainability report as they consider taking a job with you; MSP client Union Bank makes a point of sharing its sustainability report with desirable potential hires.
- Carbon Disclosure Project
In an increasingly carbon-concerned world, the Carbon Disclosure Project provides the investor community with detailed information on how reporting companies view climate change as a risk or opportunity, and what they are in turn doing to mitigate or capitalize. Each year, 'CDP' distributes its questionnaire to over 3.500 companies and partners with PWC and SAP to create reports on how industries around the world are reacting to this global challenge.
Refusal by a company to respond to a CDP inquiry becomes a matter of public record. In 2010, 190 Asian companies responded to CDP on their climate activities; enhancing the credibility of their efforts and demonstrating their leadership to the investment community. The Indonesian private sector is conspicuously under-represented in providing such detailed disclosure and a number of prominent Indonesian companies have refused to respond to CDP.
As a country with a national emissions reduction target, Indonesia can expect mandatory carbon disclosure like that in other countries to materialize in the foreseeable future. It is therefore highly advisable for Indonesian companies to use CDP as a tool to get used to carbon evaluation and disclosure while it is still voluntary --
Sustainability disclosure using a recognized framework is an important initiative to clearly demonstrate your company's accomplishments and help to allay claims of greenwashing (ie to stay off that worst offenders list). It is also a smart move to acclimate yourself to these reporting tools before they become mandatory.
Beyond the 2 globally recognized standards explored above, there are also a variety of standards and ranking systems that are regionally recognized or more consumer-oriented. Contact Malk Sustainability partners if you have any questions.
About the Author
Zach Goldman is a Partner at Malk Sustainability Partners
Malk Sustainability Partners is a management consultancy focused on partnering with corporations to develop profitable environmental strategies.
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Frequently Asked Questions...
astra g 2.0 dti diesel Idle control?
Hi,
I have an astra g 2003 2.0 dti diesel the problem is the revs are to low and it makes the engine run rougth, how would I go about turning the revs up myself. will I need any special tools and is it an easy thing to do. Please if anyone can tell me what I need to do.
Thanks Laura.
Answer:
Most diesel engines are slightly rough at idle.
If it has always been like this, leave it be.
If it has recently become more rough, have a dealer investigate it.
Part of the diesel's fuel efficiency is due to it requiring very little fuel to idle. Increase the idle speed and you're increasing the fuel consumption (and hence running costs and CO2 emissions).
In a reasonably modern diesel like this, the idle speed will be set by the engine management system, so to increase it you'll need the correct diagnostics software and interface cable to reprogramme the system.
























































