Strategic Management and Sustainability #31
Some global sustainability initiatives related to water, net-emissions, deforestation
Good morning,
We are entering the final stretch of newsletters written by the students of the UC3M Strategic Management course, so this week there will be more than usual.
In the current newsletter you will find below some ongoing initiatives that address sustainability issues:
A Banking Alliance for Net-Zero emissions. By Davide Luigi Matrullo
New regulation and “a rulebook” for a more sustainable European textile industry. By Vanessa Zhu Zhu
ECOSIA, a company involved in the fight against deforestation. By Ana García Banús
Responses in Water Stewardship. By Eva Gajate Ayán
Enjoy reading!
Gloria Álvarez Hernández
Today's newsletter is 1121 words, about a 4.5-minute read.
Net-Zero Banking Alliance
Davide Luigi Matrullo
What: The Net-Zero Banking Alliance, promoted by the United Nations Environment Programme Finance Initiative (UNEP FI), brings together banks from all the world which are committed to reach the goals of Paris Climate Accords.
With more than 75 members in 35 countries, the NZBA represents over 40% of global banking assets, recognizing the fundamental role of the banks in contributing to the economic transition to net-zero emissions.
Examples: Intesa Sanpaolo, the biggest banking group in Italy, has recently joined the NZBA, committing to align its lending and investment portfolios with net-zero emissions by 2050. This decision is coherent with the sustainability strategy of the Group, which is committed to fight against climate change. In fact, the Group is included in some index of sustainability and it is one of the first european banks in various international ESG valuations. Moreover, Fideuram and Eurizon, two Asset Management societies of the Group, have recently joined the Net Zero Asset Management Initiative.
Sources:
https://group.intesasanpaolo.com/it/sala-stampa/news/cultura-e-responsabilita-social e/2021/zero-emissioni-e-net-zero-banking-alliance https://group.intesasanpaolo.com/it/sala-stampa/news/cultura-e-responsabilita-social e/2021/net-zero-asset-managers-initiative
https://www.unepfi.org/net-zero-banking/
Euratex’s New “Rulebook” Imposed to make Europe a Global Leader in Sustainable Textiles
Vanessa Zhu Zhu
The European Apparel and Textile Confederation (Euratex) has announced in September of 2021 that by the end of the year, it will be implementing measures to make a more competitive and sustainable European textile industry. It will do so by creating new regulations and a “rulebook” on sustainable policies.
With focus and emphasis on climate change, the new rulebook imposed on the European textile sector will aim to slow down the effects of the climate crises. The European Commission aligned this framework with other relevant EU policies such as the EU Trade strategy, the Sustainable Product Initiative and many more - to ensure successful and easier implementation. It also emphasized that the textile sector is of priority to ensure a carbon-neutral circular economy.
The organization aims to fulfill three goals:
position Europe as a global leader in sustainable textiles,
improve the efficiency of the industry, and
increase the region’s global market share.
In more detail, the framework will support the following missions:
Tackle the issue of textile waste at a large scale: to unite the European textile industry with 160,000 companies and over 1.5 million employees.
Encourage greater digitalization with a “Digital Transformation Fund”: pledges to support employees and innovations within the sector that are dedicated to developing sustainable textiles and new materials.
Increase global market share: increase market surveillance and work with other countries on agreeing to mutual recognition of standards and certification procedures.
Source:
Warren, L. (2021, September). HOW EURATEX AIMS TO MAKE EUROPE A GLOBAL LEADER IN SUSTAINABLE TEXTILES. Sourcing Journal. https://sourcingjournal.com/denim/denim-business/euratex-sustainable-textiles-plan-europe-policy-government-302610/
ECOSIA: INVOLVING PEOPLE IN THE FIGHT AGAINST DEFORESTATION
Ana García Banús
After a trip in 2009, a German sociologist called Christian Kroll understood the harmful consequences of deforestation in social, cultural and political terms. It was then, when he created ECOSIA, a sustainable internet research program that aims to fight deforestation. Currently located in Berlin, ECOSIA´s serviced are completely motorized by renewable energy.
The firm aims to fight deforestation through planting specific species of trees depending on the area. Hence, ECOSIA is not only helping climate change through reducing CO2 and protecting biodiversity, but also promoting wealth and economic development in some regions. Currently, more than 100 million trees have been planted, and 1 billion is expected for 2025.
However, ECOSIA has gone one step further. The firm involves the users in the fight against climate change and deforestation, but how does it work? Each search in ECOSIA is financed the advertisement, and 80% of the obtained income is used for planting trees. In addition, the company provides monthly reports and there is information available in its website, not only about the projects, but also about each extra planted tree. For instance, one important project of ECOSIA is developed in Peru. Working with PUR Project organization, they aim to provide employment to native people and reforest the region, that during the 80s was used for the production of cocaina harming considerably the floor.
To sum up, ECOSIA provides a new way of fighting against climate change. It does not only focus on deforestation instead of just looking at income and benefits, but also tries to involve the people in its initiative. Through this method, the users feel part of a change while cooperating with the environment, so what about trying it?
Sources:
https://www.mutua.es/blog/medio-ambiente/buscador-ecosia_post/
https://ruizhealytimes.com/sin-categoria/ecosia-el-buscador-ecologico/
https://info.ecosia.org/about
Stakeholder concerns response in Water Stewardship
Eva Gajate Ayán
According to the UNESCO, the planet will experience a shortfall in fresh water by 2030.
This has caused an increase in concern about this issue in the population and, therefore, in the stakeholders of the companies.
This is why we tell you some examples of the great leaders in Water stewardship.
Marks and spencer
This famous company has carried out different initiatives with the aim of improving its operations in this regard:
In its new version of the sustainable business transformation program, he implemented water stewardship programs for the most material and at-risk watersheds in its food, clothing, and home supply chains.
It has worked at WWF to measure risk in its value chain and participated in various programs together with its stakeholders in this regard.
Ford Motor
Like marks and spencer, this company was one of the most important in introducing
sustainable water processes in its business.
It is the first car company to enter the Business Area of Water and Climate, which aimed to find the risks related to water and their solutions.
It is one of the companies awarded an A in CDP for their water management efforts.
As we have seen, both companies have transformed their way of producing and doing business to adjust to the new changes and climatic problems of the world.
Thanks to the functioning of the economy, although these companies themselves did not have an aim to be sustainable, the pressure exerted by their stakeholders has led to a considerable improvement in the way they look at the environment and sustainability.
Source:
https://www.triplepundit.com/story/2019/7-companies-leading-their-industries-water-stewardship/82911