Business

  1. Business

The scoop: Golf is still growing, but it needs to incorporate sustainable practices to keep trending up.

Why it matters: Golf uses 2 billion gallons of water every day, and makes up over a million acres of land in the US alone.

Our recommendations:

  1. Invest in new technologies that conserve freshwater.
  2. Take advantage of regenerative and eco-friendly management practices like limiting the use of pesticides, encouraging the growth of wild plants off the fairway, or enacting policies that treat wildlife responsibly.

Bottom line: As a major outdoor sport, golf has a serious opportunity here to capture the hearts of young athletes. As much as it will be challenge, golf and sustainability can work together very well.

Dig deeper → 2 min

  1. Business

The scoop A new stock exchange was approved by the SEC in 2019. It focuses on long-term sustainability. We thought it demanded more PR.

Things to know

  1. 87% of executives and directors feel most pressured to demonstrate strong financial performance within two years.
  2. If all US companies had employed long-term strategies, they would have added
    • $1 trillion to U.S. GDP
    • Five million jobs between 2001 and 2015
  3. Economic earnings for long-term firms grew on average 81% more than other firms.

Long Term Stock Exchange was founded by Eric Ries after an international tour for his NYT best-seller Lean Startup. The stock exchange uses principles-based listing standards for new companies.

Bottom line In a time in which we face unprecedented and urgent long-term problems such as climate change, racial injustice, and the threat of epidemics, it is crucial that our infrastructure supports the long-term solutions needed to tackle such complex problems.

Dig deeper → 4 min

  1. Business

What to know American aluminum can suppliers are experiencing a shortage. Unpredictable consumer behavior and increased demand led suppliers to miss production levels and now beverage brands must scramble to compete for what's left.

Why it matters The overall shift from single-use plastics has also led major drink makers to shift from plastic bottles to aluminum cans. And while aluminum cans don't last in the atmosphere forever, they still can have damning effects on waste management. We are living in a world where China doesn't want our trash anymore, and recyclable aluminum cans are more of a band-aid solution of a larger problem.

The silver lining Consider it a stress test. With real-world examples about the fragility of our global system in place, we can now create applicable solutions outside the classroom.

Key recommendations for the shortage

  1. Brands can adapt by providing bulk alternatives to the traditional 12 oz can.
  2. Brands can also educate consumers on the label about the importance of maintaining a can's shape for recycling purposes. I was a beer can crusher in college, and I had no clue that crushing a beer can would make it near impossible to recycle.
  3. To consumer, do you love beer? Me too. Go to your local brewery, and fill up a growler. You can fill up a lot of beer for a great price, straight from the tap. You can support a local business, and the beer tastes fantastic if you pick the right brewer. There are more quality independent breweries out there today than ever before.

Dig deeper → 1 min

  1. Business

The scoop As consumer goods go green, PepsiCo announced last week its plan to further develop and scale the world’s first recyclable paper bottle.

Paper bottles PepsiCo will begin testing on the new paper bottle in 2021. The bottle is made from sustainably sourced pulp to meet food-safe standards and is designed to be fully recyclable in standard waste streams.

Bottom line

  • We need innovation and ambition in the food & beverage space, this is a good place to start
  • Limiting the amount of waste in the ocean is always a win, but Pepsi still has a long way to go
  • Organizations are building new, innovative ways to clean up Pepsi’s mess.
  • This is definitely a bit of greenwashing
    • The announcement calls for R&D testing in 2021, so we may not see paper bottles on the shelf for some time.
    • Furthermore, Pepsi did not elaborate on its major paper proposal’s inevitable impact on trees.
    • Will there be ecological offsets for the increased production of PepsiCo recyclable paper bottles?

Dig deeper → >1 min

  1. Business

The scoop BlackRock’s Larry Fink warns CEOs that the risks associated with climate change will compromise returns without reallocation of capitol, calling for potentially the biggest divestment in finance history.

Why it matters BlackRock, the world’s largest asset manager, pledges to divest from fossil fuels and coal, increase investment transparency, and promote firm accountability throughout their sustainable transition.

Bottom line Though his letter is a step in the right direction, it merely foreshadows the significant changes yet to come. Executives will either embrace innovation today or be overshadowed by forward-thinking leaders.

Dig deeper → 3 min

  1. Business

How it stands

  • Companies frequently implement corporate social responsibility (CSR) programs (which include sustainability initiatives) in order to improve their image in the eyes of investors and customers, which in turn boosts profits.
  • But it is unclear if CSR programs actually make the world a better place
  • Most of the information about a company’s environmental footprint is only available through the company itself, presenting an obstacle to objective evaluation.

Examples

  • Coca-Cola claims to have reduced the water footprint of their drinks. But their calculations do not include the water used in the supply chain that provides the ingredients and packaging for the final product.
  • CSR programs (like Coca-Cola’s) often use offsets which instead of conserving limited resources lead to increased consumption.
  • Unilever claims to use a scientific approach to sustainability, trying to reduce their own emissions instead of investing in offsets for carbon neutrality.
  • More recently, Unilever announced the addition of carbon footprint labels on all products to increase transparency.

Bottom line

  • While the effectiveness of corporate sustainability programs is mixed, the fact that sustainability is on their radar and part of their marketing strategy is a big step forward. 
  • Don’t take everything you hear at face value. Take a deep dive into a company’s sustainability practices and decide for yourself.

Dig deeper → 5 min

  1. Business

The scoop Market research firm JD Power released a new index based on environmental, social and governance (ESG).

Key findings

  • Consumer awareness and engagement with utility climate initiatives are very low
  • Most concerned cities: NYC, LA and Portland are most concerned cities on climate change
  • Climate change skeptics: Wyoming and Alabama have the largest percentages of climate change skeptics
  • Business customers more engaged in sustainability than residential customers

Why it matters Sustainability has a communication and education problem. Companies in traditional industries like electricity need to adapt marketing initiatives to match 21st century tools, and communicate better with consumers.

Dig deeper → 2 min

  1. Business

The billion-dollar banana maker announced an ambitious plan to eliminate fossil-based plastic packaging by 2025, and reach net-zero carbon emissions by 2030.

Dole's plan Turn food waste into repurposed solutions like...

  1. Pineapple skin packaging
  2. New snacks made from rejected fruit
  3. Facilities powered by food waste converted into electricity.

What to expect Other major food producers will respond. The goal-setting sustainability trend continues, and only time will tell whether R&D goal-making converts into tangible results.

In the meantime, you can feel a little bit better about your next purchase of a Nicaraguan-born Dole banana.

Dig deeper --> 1 min

  1. Business

What’s the matter: Greenhouse gas emissions fell sharply with COVID-19 lockdowns, but as governments ease restrictions, emissions are rebounding faster than expected. It begs the question: if a global pandemic can’t meaningfully cut emissions, what can?

By the numbers

  • Of the nearly $12 trillion committed by the world’s 50 largest economies to the coronavirus recovery, “only about $18 billion has been targeted at post-carbon economic priorities such as developing renewable energy or incentivizing clean industry.”
  • To achieve the 1.5 degrees Celsius threshold targeted by the Paris Agreement in 2015, we would need to cut emissions by at least 7% every year indefinitely

Next Steps: As we wrote about earlier this month, Europe has proposed an $826 billion green COVID-19 recovery plan. But the rest of the developed world, especially America, is still thinking brown. COVID-19 makes it clear that individual action will not be enough to fix the climate crisis. We need major structural changes at the governmental (and multinational) level to move forward.

→ Dig deeper (3 min. read)

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