Avon Aims to End Deforestation & BMW Joins with Peugeot for Electric Cars

When people think of the company Avon, they may conjure images of door-to-door make-up saleswomen, or they may even recall the company’s efforts to fight breast cancer. But Tod Arbogast, vice president of sustainability and corporate responsibility says he wants Avon to be known as the company that helped end deforestation.  Meanwhile, electric car market fever is gaining traction. BMW and Peugeot PSA have joined forces to produce electric cars, fuelling speculation of a full-blown Franco-German merger. 

By Tilde Herrera, an editor at GreenBiz Group (3 February 2011):

When people think of the company Avon, they may conjure images of door-to-door make-up saleswomen, or they may even recall the company’s efforts to fight breast cancer.

Tod Arbogast, vice president of sustainability and corporate responsibility at Avon Cosmetics, hopes the company gains a different type of reputation.

“We want to be known as the company that is going to help end deforestation,” Arbogast said.

In a workshop at the State of Green Business Forum, Arbogast offered a look at how chief sustainability officers can identify and manage potential environmental and social business risks before a crisis requires immediate action. A range of tools exist to help chief sustainability officers get in front of issues voluntarily, before it becomes mandatory. 

“As sustainability practitioners, the earlier we can get visibility into an issue, the better informed we are to make a choice,” Arbogast said.

Arbogast took this approach with forestry, a material business issue for a company that is a major publisher of product catalogs. “Our ‘storefront’ is our brochure, our catalog,” Arbogast said.

It was a highly relevant issue for Avon that was growing in attention and concern, but the company had no position or sourcing policy for pulp used in its catalogs. The company utilized a range of tools to help it decide how and when to address deforestation, which eventually led to the formation of what it calls the “Avon Paper Promise.”

The Promise aims to promote sustainable forest use through the purchase of 100 percent of its paper from certified and/or post-consumer recycled content sources by 2020, with a preference for pulp certified through the Forest Stewardship Council  (the company is now at about 70 percent, about 30 percent of which is FSC); protecting forests, old growth, high conservation or endangered forests and ecosystems; reducing demand on forests; promoting clean production practices; and promoting continuous improvement and transparency.

To identify potential business risks like forestry, Avon regularly maps issues by weighing both their relevancy and maturity or societal awareness to guide the organization in how they might react.

“If it’s very relevant to your organization, but no one in society really knows about the issue, you should probably execute against it, but do so quietly. No point in being outspoken about it if no one really knows about it,” Arbogast said. “If it’s very relevant and it’s an issue that well known, you should be very strategic with it.”

Is it a less-relevant issue that’s not well-known? Be responsive based on risk, Arbogast said, but don’t allocate a lot of resources. Not relevant, but well-known in society? Be concerned and monitor in case it eventually requires action.

Avon also uses another tool to determine the level of action the company should take on issues, and figure out where it wants to be on issues, based on five stages ranging from Elementary (Stage 1) to Transformational (Stage 5).

“Because of forestry’s relevance to Avon, the last place we want to be in terms of our implementation strategy to address the issue is at the elementary level,” Arbogast said. “What we really want to be seen as, based on our actions, is transformational.”
Source: www.greenbiz.com

Robert Lea in The Times (3 February 2011):

BMW and Peugeot PSA have joined forces to produce electric cars, fuelling speculation of a full-blown Franco-German merger.

The prospects of a marriage combining steely German success with French panache has long been the subject of saloon car chatter.

But while the big day may still be some way off, the relationship has been getting stronger.

The companies have been working together on conventional engine development for five years and agreed last year to produce a four-cylinder petrol engine.

Now they are setting up a 50-50 joint venture to produce hybrid vehicles powered by a combination of electricity and petrol or diesel.

The move binds the companies together in what is generally regarded as the next big automotive market.

“We are sure to develop and expand our expertise and to build a European leader in the field of automotive hybrid innovation,” said Philippe Varin, the chief executive of PSA.

Peugeot has been one of the world leaders in electrification, with the launch last month of the Peugeot iOn in an electric battery and engine collaboration with Mitsubishi of Japan.

This alliance has been the subject of speculation that it may be the precursor to a Franco-Japanese merger.

The tie-up with BMW comes before Peugeot’s industry-leading launch this year of a diesel hybrid that will power its Peugeot 3008 family-sized vehicle.

BMW’s conversion to hybrid and electric production has been significantly slower.

The joint venture with PSA, its most substantial commitment to the market yet, will spark speculation that the Mini could be the ideal model for the new technologies.

A low-key trial of electric Minis is being carried out in Oxfordshire but is understood to be a long way off commercialisation.

Norbert Reithofer, the BMW chairman, said that the creation of BMW Peugeot Citroen Electrification would create big economies of scale in joint research and development, production and component purchasing.

The venture is pitching itself as the standard for hybrid car production in Europe, a platform from which to sell components and technologies to other automotive groups and setting up a head-to-head rivalry with Volkswagen.

BMW and PSA refused to reveal their financial commitments to the project but indicated that detailed information would be published at the Geneva Motor Show, which opens next month.

A full merger of the two companies has always been regarded as difficult because both businesses have controlling family interests – the Peugeots and the Quandt family at BMW.

However, recent comments by Thierry Peugeot have suggested that control of the company in any future corporate structure is no longer a deal-breaker.

Source: www.theaustralian.com.au

Water Wor(l)ds Surfaces in Singapore; Climate Change on Stage and Film

Climate change is making itself felt on the London stage. Three plays on the theme open inside 10 days, starting with this major offering from the National Theatre. In Singapore, World Water Day and World Storytelling Day come together on 20 March in an aptly titled and unique celebration – “Water Wor(l)ds” – devised and organised by  Roger Jenkins, supported by the Singapore Environment Council. In Santa Monica, California, “ThinkSwiss Climate Trail & Polar Wonders: Photographs From the End of the World” went on show earlier this month.

Singapore Storytellers Come Out in the Open for World Water Day

World Water Day and World Storytelling Day come together on 20 March in an aptly titled and unique celebration – “Water Wor(l)ds” – devised and organised by  Singapore’s Roger Jenkins, himself a storyteller, director, teacher and author.

Stories with a water theme will be told and acted out at two venues during the day – Sengkang Wetlands stage and Lower Seletar Reservoir – while in the evening a gala performance will be held at the NTUC Auditorium, 1 Marina Boulevard, which also provides a panoramic view of the Marina Bay Reservoir.

Traditional tales from around the world – from the mountains of Ecuador to the mouth of the Ganges – will be told by professional storytellers Roger Jenkins, Chuah Ai Lin and Dolly Chew, with Gillian Tan sharing some stories in song.

Roger Jenkins explains that the importance of water – and storytelling – is universal. “Water is a symbol for life, cleanliness, renewal and healing”.  He quotes Ursala K Le Guin who said: “There have been great societies that did not use the wheel, but there are no societies that did not tell stories”.

For the evening performance at NTUC Auditorium, commencing at 8pm, it is necessary to book in advance for a seat, but entry is by donation. Funds collected by the Singapore Environment Council (SEC) will go towards a water conservation project in an ASEAN country.

Roger Jenkins says he has three main objectives in organising the World Water Day’s event:

• To enable a wide range of people of all ages to tell and listen to stories;
• To raise awareness of the importance of water;
• To raise funds for a water related project in an ASEAN country.

Internationally, the organisers of World Storytelling Day – www.worldstorytellingday.webs.com – have adopted the theme of water for the first time this year, while the international observance of World Water Day – www.worldwaterday2011.org  – is an initiative that grew out of the 1992 United Nations Conference on Environment and Development (UNCED) in Rio de Janeiro.

For more information on the day and evening activities go to www.rogerjenkins.com.sg and to make booking for the event at NTUC Auditorium on 20 March at 8pm, email to: waterworlds@rogerjenkins.com.sg

From Switzerland to Santa Monica

A traveling photography exhibit and program highlighting global climate change, developed by the Swiss government, is making a stop in Santa Monica this month.

The “ThinkSwiss Climate Trail & Polar Wonders: Photographs From the End of the World” event  provides a unique opportunity to get an artistic and scientific impression of climate change.

The educational displays and photography exhibit was dispersed throughout the Santa Monica Main Library Lobby and Youth Services Area at 601 Santa Monica Blvd.  

This presentation is open to the public, free of charge, and offers the Santa Monica community an opportunity to:

• Meet award winning photographer Daisy Gilardini and hear her speak about her expeditions to the polar regions.

• Learn about climate change from a scientific perspective as Konrad Steffen, Director, Cooperative Institute for Research in Environmental Sciences at the University of Colorado will discuss the global issues and answer your questions.

• See a film by documentarian Corina Gamma about the wildlife in Antarctica.

Event jointly organized by the City of Santa Monica Office of Sustainability & the Environment / SantaMonica Public Library / Sustainable Works and the Swiss Consulate General of Switzerland in Los Angeles as part of its U.S.–wide program ThinkSwiss-Brainstorm the Future.

The ThinkSwiss Climate Trail is a pathfinder toward global solutions. During workshops, conferences and fairs in many U.S. cities, thou­sands of people have walked the Climate Trail exhibition. It offers an interactive opportunity to learn about global warming and en­courages multidisciplinary discussions about how to pursue a more sustainable lifestyle.

The dramatic increase in greenhouse gases in the earth’s atmosphere has led to an increase in global temperatures and the destabilization of the earth’s climate. Globally, 11 of the hottest 12 years on record have occurred since 1995. In the past century, the earth’s surface has warmed by about 1.4°F, while arctic temperatures have risen at almost twice the global rate. The public health consequences of global warm­ing will have drastic effects. If warming continues, more than a million species worldwide could be driven to extinction by 2050.

There is not a single solution to address this pressing environmental problem; only a combination of measures will provide an effective response. Given rising prices for fossil fuels, renewable energy is an attractive alternative. Solar energy—the fastest growing energy technology in the world—increased by 50% in 2007 while wind power grew by 28% worldwide. Biomass and geothermal energy are also increasingly used for power and heating.

Switzerland is committed to reducing its greenhouse gas emissions by 8% below 1990 levels by 2012. The use of hydropower already meets 60% of Switzerland’s electricity needs, while public transportation and energy-efficient vehicles provide alternative modes of travel. The Swiss railroad system ranks among the best in the world: more than 50% of Switzerland’s adults are regular train travelers.

Switzerland has also increased its construction of energy- efficient buildings by 16 times since 2000. Buildings are responsible for 40% of energy use in most countries. In addition, Swiss scientific institutes conduct excel­lent climate research and produce state-of-the-art technology.

Global warming will remain a primary concern on the international agenda in the coming years. As one of its top priorities, Switzerland is strongly committed to finding and implementing solutions in col­laboration with other countries. We can all become climate heroes by using new technology and adopting a more sustainable way of living.

Source: www.smdp.com and www.thinkswiss.org

By Sarah Hemming for Financial Times (4 February 2011):

Climate change is making itself felt on the London stage. Three plays on the theme open inside 10 days, starting with this major offering from the National Theatre. It’s great to see the National tackling big issues of common concern, and it goes about it with tremendous ambition and energy. The result, unfortunately, is neither fish nor fowl. One of the central points of the piece is the difficulty of achieving anything at climate change conferences. Sadly that same unwieldiness seems to apply here: it flounders under its own weight.

The theatre has commissioned four playwrights (Moira Buffini, Matt Charman, Penelope Skinner and Jack Thorne), whose contributions are woven together by dramaturge Ben Power and director Bijan Sheibani. We have a wealth of mini-narratives that bob to the surface in turn, each offering a different perspective.

There is the passionate young eco-activist trying to explain her single-mindedness to her perplexed mother. There is the Arctic observer communing with his younger self on the shrinking ice. There is the lesbian couple at loggerheads over how to conduct their daily life. And there is the government adviser who is hoping to get a scientist to present his terrifying climate projections to the 2009 UN climate change conference. Present, too, are delegates from Mali and a lad who talks generally about risk and choice.

The piece certainly reaches for something epic and catches the paralysed sense of confusion as to what to do. I like the non-naturalistic style and Sheibani’s ambitious staging (designed by Bunny Christie), which uses the height and depth of the stage to create an apocalyptic dreamscape and deluges the hard-working cast variously in plastic bottles, sheets of paper and pouring rain. It has some beautiful moments, particularly when a huge, lifelike polar bear lumbers on to the stage.

But a downside of this kaleidoscopic approach is that nothing beds in and there is little real progress. The characters are thinly drawn, their relationships flimsy and their arguments often grimly clichéd. Theatre can be excellent at dialectic, or at plunging you into characters’ lives. This piece doesn’t do either: it neither rattles your brain cells nor stirs your emotions. This is a huge subject – you long for rigour, clarity, urgency, to have your ideas tested and your understanding increased. Greenland is a noble venture, but it feels like an opportunity missed. 

National Theatre

Source: www.ft.com

Making Economic & Business Sense out of Sustainability

Sustainability might be a buzz word to some, but it is increasingly making good business and economic sense to those who take it seriously – companies and countries large and small.

This is not just because we have a business in what we can the “sustainability sector”, because we have been writing and talking about corporate sustainability for many years, and – yes – acting on it as well.

In Sustain Ability Showcase Asia, along with ABC Carbon (the book, newsletter and consultancy), plus through our involvement in the new business Carbon Zero Solutions, we see our primary job as convincing governments, business, community leaders and all those we are in touch with, to see that sustainability – along with its associated commitment to the environment, social enterprise, energy efficiency, renewable energy and all things green – makes economic sense. It is not just good for the heart and soul, it is vital for the wallet and the bottom line.

Embracing  sustainability in business is a commitment to invest in the future, to save money and make money, to please customers and all stakeholders.

So we happily repeat here an article by Timothy Iszler, of the US professional firm Crowe Horwath, because it puts into words what makes sense. He writes:

“Many people are talking about corporate sustainability, but many don’t understand exactly what corporate sustainability means. Corporate sustainability is a business approach that creates long-term shareholder value by embracing opportunities and managing risks deriving from economic, environmental and social development.” Read More

Smart Business South Florida

Timothy Iszler, Partner, Crowe Horwath LLP

Many people are talking about corporate sustainability, but many don’t understand exactly what corporate sustainability means.

Corporate sustainability is a business approach that creates long-term shareholder value by embracing opportunities and managing risks deriving from economic, environmental and social development.

Still, even if a company is interested in achieving corporate sustainability, the prospect may seem overwhelming. But it’s really not that difficult to get started, according to Timothy Iszler, a partner with Crowe Horwath LLP.

“You can take small steps to get started,” says Iszler. “And the benefits can be significant. Generally when companies go through this process, they end up saving money and improving the bottom line.”

Smart Business spoke with Iszler about corporate sustainability and how it can improve a company’s image and its bottom line.

What key factors does a business need to focus on when approaching sustainability?

The first is a commitment from the CEO and top management. Without that commitment from the top, it will be very difficult to get the buy-in of employees and push the initiative throughout the organization. The leaders also have to develop a business case for sustainability, including a return on investment, as well as the compliance aspect with government regulations, consumer concerns and employee interest.

Consumer consciousness may be driving sustainability initiatives, but on the business end, they can also save costs and improve the bottom line.

Another factor to consider is finding the right person to lead the initiative. Don’t just assign someone to lead; instead, talk to people across different departments to find those who are really passionate about the issue, because without that passion and drive, the effort is likely to fail. You also need to measure the results of your efforts, and not just assume that they are working.

Finally, start small. Looking at too many areas at once can be overwhelming, and taking small steps will reap small successes, which will encourage you to continue your efforts.

What are some ways to start small?

One entry point is to look at your product design. For example, Nike started its sustainability initiative by examining its product design and discovered how much waste it had in the process. By reducing that waste, it was able to realize a cost savings, but it was also an environmentally good thing because a lot less material ended up in the landfill.

Another thing you can do, especially in manufacturing, is to go through your processes and determine where things could be done more efficiently to reduce waste. Even things that seem simple, like changing the light bulbs in a factory to more efficient lighting, can result in additional cost savings and benefit the environment.

Also, more and more companies are using environmentally friendly packaging with a certain percentage made from recycled cardboard and other materials. Doing so can not only save you money but also benefit your brand image, as more and more consumers are becoming more environmentally conscious and view recycled packaging in a positive light.

What are the benefits of sustainability?

The biggest one is an improved brand image for the business. There are also cost savings to be realized from things such as using less electricity, and sustainability can give a company an advantage in a very competitive marketplace. Finally, increased employee satisfaction is also a benefit as workers gain pride from working for a company that is doing the right thing for the environment.

How do you get buy-in for sustainability?

Employee buy-in is critical. When you find the right leader for the sustainability initiative, that person needs to put together a sustainability team. The people on the front line are the ones who are going to be able to identify the opportunities in your organization.

The challenge is to identify those people within your company who are driven and have a passion to pursue the opportunities and then have them spread that passion throughout the organization.

Sustainability should flow throughout the organization, not be separated into a silo or an individual department. The goal is to fully integrate sustainability issues into the core business structures and processes, rather than managing them as separate issues.

Can a company begin the process on its own, or should it consider outside help?

That depends on how sophisticated the company is. It can be difficult to identify issues from inside the company. Before you go down that path, it’s a good idea to have someone from outside the company come in and help you develop a plan. An outside firm can help you assess and respond to the risks and opportunities integral to achieving your strategic business objectives. A sustainable corporate governance program provides a platform to understand, communicate, collaborate and deliver solutions in alignment with your organization’s vision and mission.

A consultant will help you answer questions such as: How do customers measure your performance? What sustainability metrics are included? How do your customers validate what you report? What new sustainability initiatives are your customers putting in place? How are you taking advantage of new tax and economic incentives related to sustainability? How are you going to take advantage of the new business opportunities presented by companies reacting to climate change? How are you preparing for CO2 cap and trade programs?

By consulting with a professional firm, your company can take full advantage of sustainability opportunities to help the environment, improve its image and improve the bottom line.

Source: www.sbnonline.com