Sustainability Flashcards
When was the UN’s first meeting on environmental issues?
1972
What did the Club of Rome publish & when?
What was the conclusion - what was the impact?
1972 ‘The Limits of Growth’
Limit to economic growth due to resource constraints - did not shape public policy
When was the Brundtland Commission established?
What report did they publish, what was the conclusion?
Established in 1980s
1987 - commission’s final report
Concluded that sustainable development needs to be compatible with economic growth
‘Development that meets the needs of the present without compromising the ability of future generations to meet their own needs’
When did corporations begin to widely pursue CSR?
1990s
Wen did investors begin pressing companies to become more sustainable? What was this referred to as?
1990s
Referred to as ‘shareholder engagement’
When was ESG coined as a term, by what?
When was this solidified?
ESG coined in 2005 by UN Global Compact
Solidified when embedded into the UN PRI (2006)
What are corporations corporate-level climate goals motivated by?
- bottom up consumer pressure
- government policy
- investor / lender pressure
Is Climate an exclusively ESG issue? Why?
No - impacts all stakeholders, including those who are not currently acting in sustainable ways
When were the UN SDGs launched?
What were they launched as part of?
2015
UN’s 2030 Agenda for Sustainable Development
What was adopted at the 1992 Rio Earth Summit? By whom?
Agenda 21 - plan for a global partnership on sustainable development
178 countries
Who was the Rio Earth Summit started by?
UNFCCC - UN Framework Convention on Climate Change
Convention on Biological Diversity
What have the UNFCCC and Convention on Biological Diversity helped to support?
Large role in coordinating communication regarding scientific consensus built by the IPCC with Governments
Why is the UNFCCC important
All major global level climate-policy agreements have happened under aegis of UNFCCC
MDGS : when established, how many, to be achieved by ___?
Established in 2000
X8 goals
To be achieved by 2015
Success of MDGs, why?
Ultimately fell short
Lack of private sector engagement
But helped set a benchmark
Mandate of the 2030 Agenda for Sustainable Development
Build on the MDGs and complete what they did not achieve
Centred on people, planet, prosperity & peace
Success of SDGs based on?
Broad, all encompassing, detailed goals
169 targets provide specificity and better tracking / focus
Broader set of policies covered - allows wider range of stakeholders to find agreement on some issues
CS: Goal 4 - Quality Education
Free access to primary & secondary
Access to early childhood care
Access to technical, vocational and higher education
Eliminate gender disparities
CS: Goal 7 - Affordable Energy
By 2030…
Universal, reliable, affordable modern energy services
Increase share of renewable energy in global mix
Double global rate of improved energy efficiency
International cooperation on research / tech / investment
Expand infrastructure for supplying modern energy - esp. in developing
Nature based solutions - brief description
Help protect, manage or restore ecosystems whilst addressing societal challenges
WWF definition of nature based solutions
Increased ECOSYSTEM functionality
Be SCIENCE based
Be SYNERGISTIC
Involve STAKEHOLDERS form local / indigenous communities
Be MEASURABLE
First 6 SDGs (individual rights)
1 - no poverty 2 - zero hunger 3 - good health & wellbeing 4 - quality education 5 - gender equality 6 - clean water & sanitation
External Requirement SDGs - x5
- Affordable clean energy
- Decent work & economic growth
- Industry, innovation & infrastructure
- Reduced inequality among countries
- Sustainable cities
Environmental SDGs X4
- Responsible consumption & production
- Urgent climate action
- Protect life below water
- Protect life on land
Final 2 SDGs
- Peace, Justice & Strong Institutions
17. Partnership for Goals
Previously businesses used to practice ‘pure’ capitalism - who was this aligned to?
Friedman
‘There is one social responsibility of business - to use its resources and engage in activities designed to increase its profits’
When was the ‘triple bottom line’ developed
1980s & 1990s
When was the term CSR developed?
When did it get popularised?
Developed in 1950s
Popularised in 1990s
Who issued one of the first sustainability reports?
When was this?
Shell - 1998
What did shell develop to support its sustainability reports? When was this established?
Internal Social Responsibility Committee - 1997
What was the conclusion of Shell’s first sustainability report
No choice needed to be made between ‘profits and principles’
What trend are we starting to observe in sustainability reporting from the late 1990s to present?
Move away from values towards establishing targets
What sort of effect do SDGs have on companies and industries?
What does this mean?
Material effects
Effects can impact the financial bottom line
Understanding SDG alignment is important - what tools are out there for measuring this?
MSCI’s SDG Alignment Tool
8500+ companies - overview of net contribution to the UN SDGs
Reputation Risk can be material for companies - how does this come about and what may it result in
Perceived breaches of sustainability can lead to reduced demand
Increased scrutiny from creditors or regulators
Potential to lose ‘social license to operate’
Example of where a lack of sustainability has resulted in material financial impact
2019 Dam in Brazil - Vale
Collapsed - killing 250+ and polluted downstream
Share price collapsed >24%
What council was formed at the 1992 Rio Summit, what is its mandate?
World Business Council for Sustainable Developed (WBCSD)
Research on CSR & share best practice
When was the PRI launched?
What did it pave the way for?
2006
Helped pave the way for issue-specific coalitions
By joining the Principles for Responsible Investment, you commit to…
- INCORPORATING ESG in investments & decision
- ACTIVE ownership
- Seeking DISCLOSURES
- Promoting Principles ACCEPTANCE
- Collaborating to IMPLEMENT the principles
- REPORTING activities and progress
Individuals - At - Daylesford - Always - Implement - Rudeness
When was the SASB board founded?
How many industries do they set standards on for the most materially relevant issues?
2011
Most materially relevant issues in 77 industries
What 5 main dimensions does the SASB look at?
How many key issues does this cover?
- Social Capital
- Human Capital
- Leadership & Governance
- Environment
- Business Model
Covers 26 key issues
What initiative was founded in the wake of an oil spill? & when?
What has their journey been?
Global Reporting Initiative - 1997
Initially focused on guidelines - since 2016 has focused on setting standards for sustainability reporting
Who is the WBCSD composed of?
200+ global firms
Members from a range of industry sectors - CEOs act as council members
What is the UN Global Compact?
13,000 participants
Framework based around 10 principles on human rights / labour / environment / anti-corruption
Coined the term ESG in 2005
What is the PSI and when was it launched?
How many principles and what is the mandate
Principles for Sustainable Insurance - launched in 2012
4 principles - manage ESG issues, develop resilient, inclusive, sustainable society
What are the 6 Principles for Responsible Banking - brief version
- Alignment
- Impact & Target Setting
- Clients and Customers
- Stakeholders
- Governance & Culture
- Transparency & accountability
All - Turtles - Can (be) - Saved - Go - Turtles
What is the three step process which guides PRB signatories through implementing their commitments?
- Impact Analysis - most significant products / services
- Target Setting - setting & achieving
- Reporting - publicly report
PRB Principle: Alignment
Describe
Be consistent with and contribute to individuals’ needs expressed in SDG & PCA
PRB Principle: Impact & Target Setting
Describe
Continuously increase positive impacts whilst reducing negative impacts on people & environment
PRB Principle: Clients & Customers
Describe
Work to encourage sustainable practices, create shared prosperity
PRB Principle: Stakeholders
Describe
Proactively consult, engage and partner
PRB Principle: Governance & Culture
Describe
Implement commitment to principles via governance & culture
PRB Principle: Transparency & Accountability
Describe
Periodically review individual and collective implement of these principles - be transparent about +/- impacts
