Tag Archives: Climate Change

Climate, News

Shareholders more likely to support eco-initiatives if they have experienced climate disasters

Shareholders in locations recently hit by climate-related disasters such as hurricanes are far more likely to support environmental proposals, by as much as 38%, even when such proposals risk decreasing firm value, according to new research from the Rotterdam School of Management Erasmus University (RSM).

The study, undertaken by Dr Guosong Xu at RSM alongside Dr Eliezer Fich at Drexel University, sought to bring greater understanding to two key questions at the crux of encouraging corporations to better support environmental protection efforts; whether shareholder beliefs about climate change alter their support for environmental proposals, and whether those proposals affect firm value.

Dr Xu says;

“Climate change related proposals have increased steadily in recent years, reflecting growing investor demand for corporate accountability. However, despite their popularity, these proposals commonly receive insufficient support. According to a report by the UN, just 2.8% received enough votes to pass during stockholder meetings held from 2006 to 2020.

“Our study seeks to better understand why these initiatives receive such little support, and what it takes to pass them successfully.”

The researchers speculate that such a lack of voting support is driven by stockholders’ perception that climate-change is not an immediate concern. Belief, they say, plays an important role in investor behaviour.

The researchers analysed mutual funds’ voting records of US firms according to the Institutional Shareholder Services (ISS) Voting Analytics database, between 2006 and 2020. They then mapped each funds headquarters to the Census 2010 county Federal Information Processing Standards (FIPS) code, to identify hurricane locations.

By doing this, the researchers were able to base their findings on more than 357,000 voting observations made by shareholders of US-based firms.

Dr Xu and Dr Fich made several key discoveries.

Firstly, funds in areas hit by a hurricane were significantly more likely to vote for an environmental proposal in the immediate aftermath of the event, as were funds located in other hurricane-prone locations. The difference in investor support was as much as 38% higher in such locations.

However, the effect was, for many, temporary, with most investors returning to their previous stances and reversing their support for such schemes within three years.

Notably, the researchers say that fund characteristics such as size, performance, flows, attitudes towards environmental, social and corporate governance (ESG) issues had little impact on their research findings. Those instances where unconditional support was found for climate proposals did not differ among funds located either inside or outside of hurricane-prone locations in the years without a hurricane strike.

Therefore, shareholders’ changed perceptions about climate risks were the most likely reason for their increased support for pro-environmental initiatives after a hurricane strike.

Lastly, once climate-related proposals were passed, firm performance typically weakens. In analysing whether ESG-related proposals created value for firms, the researchers discovered that companies that approved environmental proposals also typically exhibited lower long-term stock returns and accounting underperformance.

The researchers say their work adds important information to the ongoing debate on the role of corporations in global environmental protection, by highlighting the role of investor psychology in altering shareholders’ perceptions about climate risks and, consequently, their support for corporate environmental policies.

News

Energy Efficiency Advice From World’s First Ever Zero Emissions Online Contact Centre

More than ever, climate change has been in the spotlight with calls for world leaders to address the issue. With the rise in natural disasters all over the planet and increasing concern for our futures, many can’t help but wonder if we can still stop the negative impacts of climate change? While there is no clear answer, what is clear is that the best way to attempt to slow down the crisis is to reduce our carbon footprint. In the spirit of Energy Efficiency Day, Norango, the world’s first ever zero-emissions online contact centre, shares expert advice on making your business more energy-efficient while reducing your carbon footprint. 

Modernise Your Electrical Appliances

This may sound like a no-brainer but many offices throughout the UK still don’t use energy-efficient LED bulbs, or they are trying to scrimp and save on office costs by having old appliances. However, since old electrical appliances are less adapted to modern environmental requirements and are less energy-efficient, not only are they more harmful for the environment but they will rack up higher power bills for you and your business in the long run too.

Along with upgrading all electrical appliances to modern models, make sure to also set them to ‘sleep’ mode while not in use. Most computers, printers and other electronic devices offer a ‘sleep’ mode after a certain amount of idle time which can reduce their energy consumption by up to 70 percent.

Outsource or Go Remote

Norango’s recent carbon footprint assessment showed that during 8 months of work, a remote Norango employee produces only 0.5 tonnes of CO2 compared to an average 3.5 tonnes by a regular office worker, which skyrockets up to 20 tonnes of CO2 per employee at high energy-consuming organisations. Traditional call centres using a large office space, employing several hundred employees, may even produce over 2700 tonnes of CO2 in only six months.

In order to offset just one tonne of carbon dioxide emissions, 50 trees need to be planted and grown for at least a year. 

In our post-pandemic world, the advantages of having a team working totally or partially remotely are clear: higher employee motivation, no daily commutes and positive environmental and financial impacts.  Conservative estimates suggest that even a microbusiness spends at least GPB£2300 on their electricity and gas bills per year, increasing to at least GBP£7500 for mid-sized businesses. The ability to outsource call handling to a fully-remote company like Norango eliminates the need for a reception desk and dedicated office space, while offering a high-quality service, reducing the environmental impact and business expenses. 

Join a Carbon Offset Programme

Currently, it is very difficult for businesses to reduce their carbon footprint to an absolute zero. Even those teams that are operating on a 100 percent remote basis still produce a certain amount of CO2. In these cases, companies could consider joining carbon offset programmes to get closer to net-zero carbon impact. In addition to their daily efforts to make their business model as sustainable as possible, Norango also invests in carbon offset programmes to reduce their already-minimal carbon emissions.

Environment, Environment News, News

The Glasgow Tourism Declaration – for climate change action across travel and tourism

COP26 Summit is taking place in in Glasgow 31 October – 12 November 2021. It aims to accelerate action towards the goals of the Paris Agreement and the UN Framework Convention on Climate Change. See https://ukcop26.org/

In anticipation of this the Glasgow Tourism Declaration has been created. The Glasgow Declaration aims to catalyse an acceleration of climate action across travel and tourism during the COVID-19 recovery and beyond. It defines a clear and consistent sector-wide message and approach to climate action in the coming decade, aligned with the wider scientific framework and urgency to act now.

This was discussed at an event in September 2021 in advance of the Glasgow Declaration’s official launch at COP26 this November. The event explored the Declaration’s background and purpose and introduced some case studies of frontrunners delivering Climate Action in Tourism.  It also introduced the pathways proposed in the Glasgow Declaration to accelerate tourism’s ability to transform and achieve net zero as soon as possible. You can learn more by watching the even here: https://www.youtube.com/watch?v=JA2oflMGpfk

Professor Geoffrey Lipman, President of SUNx Malta, says:

“The Glasgow Tourism Declaration is a great start to improve sector climate response, and we are pleased to be an early signatory. It moves in the right direction, but it has to go further, and it has to go faster. It builds on previous UNWTO Tourism & Climate Declarations in Djerba in 2003 and Davos in 2007. All good and well intentioned, but now we need much more to help to avert the “Code Red” Climate Crisis that the UN states we are all facing.

“To fully respond to the science and the extreme weather calamities around the world we need a DASH-2-Zero if we are to cross the finishing line in time. The Glasgow goal of a Net Carbon Zero travel industry by 2050 should shift to 2030, with a hard stop of all greenhouse gas emissions (carbon, nitrogen, sulphur, and methane compounds) by 2050. This will be our focus.

“What is very positive is the emphasis on measurement and recorded reduction in emissions by companies and communities and we stand ready to support the Glasgow process with the SUNx Malta Climate Friendly Travel Registry, which is linked directly to the main UN Global Climate Action Portal.”

  

About SUNx Malta

SUNx is an EU based, not-for-profit organisation, established as a legacy for Maurice Strong, climate and sustainability pioneer and partnered with the government of Malta.

SUNx Malta created the ‘Green & Clean, Climate Friendly Travel System’ which is designed to help Travel & Tourism companies and communities transform to the new Climate Economy. The programme is based on reducing carbon, meeting Sustainable Development Goals, and matching the Paris 1.5C trajectory. It is action and education focused – supporting today’s companies and communities to deliver on their climate ambitions and encouraging tomorrow’s young leaders to prepare for rewarding careers across the travel sector. It’s co-founder and President is Professor Geoffrey Lipman.

SUNxMalta is calling for a DASH-2-Zero for the influential Travel & Tourism sector.  Pushing for further action faster. Yes, to Net Zero Carbon, but by 2030 and a commitment to NO Greenhouse gases by 2050. DASH means Declare & Act with Support & Hope. SUNx Malta is training 100,000 young Strong Climate Champions across all UN States by 2030. Together with our 17 Sustainable Development Goal partners we are offering a UNFCCC linked Registry of Accelerated Ambition and support for Climate Friendly companies and communities

To learn more, visit their website:  https://www.thesunprogram.com/

 

News

BlackBerry delivers first-of-its kind autonomous flood protection innovation to curb impact of climate change and extreme weather events

BlackBerry Launches First-of-its-Kind Flood Risk and Clean Water Monitoring Solution

Based on BlackBerry AtHoc, the autonomous and intelligent solution has helped a municipality save nearly $1 million in operating expenses

BlackBerry Limited today announced a first-of-its-kind flood risk and clean water monitoring solution. Based on BlackBerry® AtHoc®, a critical event management platform, the innovative technology provides autonomous year-round monitoring and an intelligent early warning system, collecting and processing large amounts of sensor data, and generating alerts based on the data insights.

BlackBerry has partnered with the University of Windsor to deploy the solution in Canada, where Indigenous Peoples are disproportionately impacted by these issues. Its proven benefits include its ability to identify seasonal and unseasonal water related risks, and generate significant cost savings for governments, utility companies and local communities.  Using the solution, local municipalities could each save up to $1,000,000 or more annually in operating expenses, in addition to the environmental, safety, health, and other benefits of early warning flood mitigation and clean water

“BlackBerry is pleased to deliver this critical innovation, based on BlackBerry AtHoc, as the climate change crisis escalates.  Climate change is one of the most pressing threats to our everyday lives, and tackling it requires the urgent and combined effort of governments, organisations, and individuals,” said Neelam Sandhu, Senior Vice President & Chief Elite Customer Success Officer.  “BlackBerry is committed to delivering advanced technologies, that turn real-time data into intelligence and leverage our leadership in communications, to enable the safety and security of people around the world.  Furthermore, we are on-track to be carbon neutral this year.”

“Globally, societies must increasingly rely on the autonomous monitoring of air and water to inform our understanding of the environment and to alert us to impending danger.  The BlackBerry solution announced today delivers on this need,” said Mike McKay, Executive Director, Great Lakes Institute for Environmental Research, University of Windsor.  “Autonomous early-warnings and real-time monitoring are critical to provide enough time to address the risks communities around the world are currently facing. We are proud to have partnered with BlackBerry on this important and unique technology.”

Over two billion people globally lack access to clean water, with the lives of children under the age of five most threatened.  Almost one and a half billion of the world’s population faces a flood risk.  Both issues are exacerbated by climate change. To learn about BlackBerry’s commitment to be carbon neutral in 2021 click here.

For more information on BlackBerry AtHoc click here.

About BlackBerry

BlackBerry (NYSE: BB; TSX: BB) provides intelligent security software and services to enterprises and governments around the world. The company secures more than 500M endpoints including over 195M vehicles.  Based in Waterloo, Ontario, the company leverages AI and machine learning to deliver innovative solutions in the areas of cybersecurity, safety and data privacy solutions, and is a leader in the areas of endpoint security, endpoint management, encryption, and embedded systems. BlackBerry’s vision is clear – to secure a connected future you can trust.

For more information, visit BlackBerry.com and follow @BlackBerry.

Trademarks, including but not limited to BLACKBERRY and EMBLEM Design are the trademarks or registered trademarks of BlackBerry Limited, and the exclusive rights to such trademarks are expressly reserved.  All other trademarks are the property of their respective owners. BlackBerry is not responsible for any third-party products or services.

 

News

Eight Net Zero and carbon offset myths, busted

Carbon offsetting is a robust, immediate and measurable way for businesses to take responsibility for their current carbon footprint now, whilst on their journey to Net Zero. Yet many businesses are still reluctant to offset their carbon emissions. Why? Largely because of the many misconceptions that are out there around offsetting.

In this article, Vaughan Lindsay, CEO of ClimateCare wants to bust some of the myths that are currently out there regarding carbon offsetting to give your business the facts it needs as it journeys towards Net Zero.

  1. Offsetting won’t tackle climate change

Certainly, offsetting alone will not tackle climate change. However, as experts around the world agree, it is an essential part of our journey to Net Zero. Most companies will not be able to reach Net Zero without it as there will always be some stubborn or hard to address residual emissions.

We need to move to a low-carbon world as quickly as possible. But even in the best-case scenario, this transition will take time. As such, while we work on reducing our emissions (often involving long term systemic changes to decarbonise existing business models) , we need to do something about the carbon emissions we are producing today. Funding  an equivalent amount of carbon emissions reductions through voluntary carbon offsetting is an effective way to take responsibility for this carbon footprint and buys us time  while we develop new processes and technology to reduce it.

Organisations like WWF, SBTi, Oxford University, the UN and the Taskforce on Scaling Voluntary Carbon Markets, all agree that carbon offsetting plays a vital role on our journey to Net Zero. The conversation has moved on from ‘should companies offset emissions?’, to ‘how should companies offset emissions?’.

  1. Carbon offsetting is a step by step process

 Companies need to take full responsibility for all the emissions they produce both today and tomorrow. On the journey to Net Zero, a business will need to measure and disclose their emissions and set a science based target for reduction. Businesses need to take action to reduce their emissions in line with what the science says is needed and then offset what is left- their residual emissions. It’s not a step by step process, the key is actually to drive actions simultaneously and at pace, and then modify and adjust moving forward.

In short, we are up against a deadline to tackle climate change, and there isn’t time to take things one step at a time. Ultimately, it is today’s emissions that are causing tomorrow’s climate change and we need organisations to take full responsibility by offsetting their carbon emissions right now.

  1. Offsetting is just a guilt free way to carry on emitting

The key here is for companies to set and deliver against carbon reduction targets, as well as offset their emissions. It’s not either/ or, it’s both/and.

The climate emergency is urgent, and we need to do everything in our power to tackle it collaboratively. And the truth is, businesses who offset emissions are putting a voluntary tax on their carbon pollution that will only increase over time. This helps focus the whole business on reducing this cost through reduction and also (perhaps most importantly) initiates behaviour changes from the top. In fact, research shows that the typical offset buyer cut almost 17% of their scope 1 (direct) emissions, while the typical non-offset buyer reduced scope 1 emissions by less than 5% in the same year.

  1. Working from home means our footprint is low

It’s not just air travel or commuting you need to think about when it comes to your carbon footprint. In fact, digital footprint is a growing problem, especially in light of the pandemic. In our rush to stream, send emails, run video calls, store data and update our social media posts, we’ve lost sight of how energy-hungry the digital industry really is.

The internet and digital technology involve far more than just the energy required to run our devices. Rather, the storing of data, otherwise known to us all as ‘the cloud’, is one of the worst offenders of all. Far from being invisible, the cloud and the technical components to run it, generate extremely high emissions.

The carbon footprint of our gadgets, the internet and the systems supporting them accounts for 3.7% of global greenhouse emissions, similar to that of the airline industry. And these emissions are predicted to double by 2025 too.

  1. Going climate neutral is just for CSR

Over the past two years, there has been a substantial shift in how many corporations think about the impact they are having on the environment. An increasing public awareness of climate change and changing consumer behaviours has catalysed this shift, which when combined with pressures coming from investors and Governments, has driven increasing climate ambition and action in the investment space. So much so in fact, that companies that have previously engaged with climate change mitigation mainly due to corporate social responsibility (CSR) are now beginning to see it as a business critical issue.

Going Climate Neutral can deliver a range of business benefits – from demonstrating environmental credentials and building customer confidence in your brand, to improving staff engagement with your broader sustainability programmes. It can even deliver business growth opportunities – building resilience in supply chains, supporting growth in key markets and helping to launch new products and services. As Mark Carney has previously stated, “firms that align their business models to the transition to a carbon-neutral world will be rewarded handsomely; those that fail to adapt will cease to exist.”

  1. Offsetting is too expensive

 Here’s one myth we can’t bust, because frankly, offsetting should be expensive. This is to reflect the true cost of climate change. Currently companies are able to pollute our climate at no cost. Companies that choose to offset their emissions are effectively putting a price on carbon for their business.

Putting carbon emissions on the balance sheet focuses attention on the issue, helping drive internal reductions, justify investment into new, low carbon busines models and will demonstrate behavioural change.

Offset project costs vary greatly depending upon their location, scale and the approach they use to reducing emissions. Accordingly, carbon credits prices in the voluntary carbon markets mostly fall within a range from about £3-5 per tonne at the lower end to £25 per tonne at the higher end.

Over time, as more companies move to become Net Zero, we expect to see the price of carbon rising and we’re encouraging companies to think ahead and work with a partner who can develop a long term offset strategy for their business. This can include new project development to manage long term price risk.

  1. SMEs are too small to offset

It’s not the size of your business, but the size of your carbon footprint that counts. Any business, no matter what size it is, can make a difference in tackling the climate crisis and work towards becoming Net Zero. Climate change is the single biggest issue that the world faces today, and we all have to play our part.

The UK Government has legislated to achieve Net Zero for the UK as a whole by 2050. Reducing emissions to Net Zero by 2030 gives us a better chance of keeping warming within the 1.5 degree target set out under the Paris Agreement. Multiple companies, of all sizes, have pledged to achieve Net Zero by 2030 and are currently considering how they can also influence their customers and supply chain to reduce their emissions too.

  1. Going climate neutral is the same as Net Zero

Going Climate Neutral today is a way for companies to take immediate action whilst they set themselves on course to meet their longer-term Net Zero target.

Going Climate Neutral by offsetting all emissions through high quality, independently verified carbon reduction (avoidance and removal) projects is the only way a company can take full responsibility for its current carbon footprint. This is because going Climate Neutral today compensates for a company’s existing carbon footprint immediately. This status should then be maintained whilst the firm takes steps to reduce its emissions as close to zero as possible, in line with a Science Based Target. In time the size of that company’s footprint will reduce and the amount they need to compensate for will reduce. The organisation will become Net Zero when it reaches its science-based carbon reduction target and compensates for all its remaining emissions through carbon removals projects.

They could then even go as far to work towards becoming carbon negative and take even more of a competitive share.

In busting these myths, it’s our aim to empower businesses of all sizes, to take responsibility for their climate impacts. Because we all need to step up and take action today. It’s today’s emissions that are causing tomorrow’s climate change and we need organisations to take full responsibility for them right now.

News, Sustainability

On the road to reversing climate change – new independent study confirms direct air capture’s potential as an efficient solution to combat climate change

In the quest to achieve global climate targets, the world is looking into climate solutions that can help to drastically reduce carbon dioxide emissions, and into solutions that permanently remove historic and unavoidable emissions from the air (carbon dioxide removal or negative emissions). One such solution is direct air capture in combination with underground storage – a permanent and safe process to remove carbon dioxide from the atmosphere.

A recently published independent life cycle assessment now provides new insights on the technology’s net environmental benefit. The assessment was carried out by the RWTH Aachen University – using data from Climeworks.

The study shows that direct air capture has a low carbon footprint when powered by low-carbon energy, such as waste heat or renewable energy. Specifically, it found that Climeworks’ plants can reach a net carbon dioxide removal efficiency of more than 90%. In other words, over its whole lifespan (including construction, operations and recycling), a typical Climeworks plant re-emits less than 10% of the carbon dioxide it captures. Future scenarios show that this can be further reduced to 4%.

Moreover, the study indicates that scaling up direct air capture to remove up to billions of tons of carbon dioxide can be viable and not limited by material or energy requirements, which in turn means the technology can significantly contribute to achieving the climate targets of the Paris Agreement.

As a result, the study offers important insights for the further development of the Climeworks technology. Since its founding in 2009, LCAs and scientific findings have always been a guiding principle in Climeworks’ technology development.

Climeworks therefore would like to express its gratitude to RWTH Aachen for conducting this study and making it publicly available. Link to the full study: https://www.nature.com/articles/s41560-020-00771-9.

 

Environment

Less than 10% of UK CEOs have a financial incentive to tackle climate crisis

Less than 10% of UK CEOs have financial incentives in place to be environmentally friendly in their business practices and thus tackle the climate crisis, according to new research from Vlerick Business School. In fact, the researchers found that only 6 per cent of UK CEOs have in their bonus a KPI focusing on the environment, and less than one per cent have long-term incentives focused on this area.

This research comes from Xavier Baeten, a professor in reward and sustainability at Vlerick Business School and director of the school’s Executive Remuneration Research Centre, alongside Vlerick researcher, Bettina De Ruyck. The study examined the pay levels, habits and incentives of CEOs and CFOs in 899 major European companies. The main focus of this was on the STOXX 600 – a stock index of the 600 largest firms across European countries, including 159 UK firms.

Analysis of data on the 159 UK companies by the researchers revealed that over 90 per cent of CEOs were given no financial incentive to focus on sustainability or environmental initiatives. UK CEOs had more incentives – both short-term and long-term – focused around income, revenue and profit, employees, customers, safety, innovation and shareholder return.

Professor Xavier Baeten said,

“There is a general consensus in business, certainly among larger firms, that there is a climate crisis and that different stakeholders have to play a role in becoming part of the solution. They now understand how their practices are impacting the environment, and are actively looking to implement initiatives that focus on being more environmentally friendly.

However, our research shows that for the overwhelming majority of UK firms, there is no incentive for the top CEOs to enact these environment focused initiatives and policies”.

The collated data also shows that though the majority of UK firms have included a least one non-financial KPI into their bonus plan, only 21 per cent of UK CEOs had a long-term incentive that was not related to the profit of the company or returns for shareholders.

Long-term incentives are a much more significant part of the remuneration package in the UK compared with other countries meaning that, according to the researchers, UK CEOs are much more strongly steered towards uplifting the share price compared with other countries. Even though this is the ultimate measure of firm value in the long term, performance shares, a popular part of UK CEOs remuneration package, could very easily lead to sub-optimal behaviour.

Professor Xavier Baeten also said;

“Though there is a clear lack of these environmental KPIs, it would not be effective for governments to look to impose these KPIs to firms. It would be much more effective and beneficial if firms think about exactly how the climate crisis will affect them and then look to first develop a sustainability strategy focusing on what are for them the most important topic of this, taking into account their business. Then, after identifying these, firms can select the relevant KPIs to include in CEOs remuneration”.

The researchers also found other results about UK CEOs in comparison to their European colleagues, including UK CEOs earning significantly more than their colleagues in Belgium, Netherlands, Scandinavia and South Europe and long-term incentive grants being much bigger in the UK compared with rest of Europe. Despite this, 42% of UK CEOs have actually had a decrease in their packages over the last three years – with FTSE 100 firm CEOs’ median remuneration dropping to €3.9m from €4.3m in 2016.

The Executive Remuneration Study by Professor Baeten from Vlerick Business School, has been carried out for nine consecutive years.