Climate Change Report 'greywashing'

Pleon Climate Change Integration Report

Greywashing: Why green companies seem grey and what they can do to change their image This Climate Change Integration Report bridges the gap between company wide awareness and ­implementation in core business.

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The Climate Change Integration Report

Executive Summary

Executive Summary Climate change is an increasingly important issue in board rooms across the world. It is an issue that companies have to deal with, both in the long term as a license to operate and to identify future markets, as well as in the short term to cut costs and attract and retain talent. Companies are turning to the government to develop an international framework for reducing greenhouse gas emissions with clear objectives and methods for holding organizations accountable for their impact on the environment. Businesses need a measureable understanding of current and future governmental regulations on emissions in order to take the necessary steps to respond to environmental concerns. Without an effective strategy, they will waste time and money. As this study shows, top global ICT companies are making sustainability a driving factor in decisions related to financial investments, supply chain policies and human resources management. Climate change related goals are increasingly being integrated in the core functions of the company. What we find is that companies don’t get recognized for their efforts as much as they could. As climate change is becoming more mainstream, there is a need for companies to engage and communicate more directly with strategic stakeholders, including consumers. The natural evolution of these types of communications is now consumer focused and it is important that these messages incorporate both marketing and public affairs. By taking a proactive role to collect, analyze, and report those steps taken by the organization to reduce potential business risks, companies can remain in control of the message they want delivered to its stakeholders. For many companies, this is an area of weakness, for others it is an act of modesty. Either way, the result is a process of greywashing: companies that are actually green seem grey in the eyes of the beholder. What makes this publication distinct from other climate change reports is its primary focus on the integration of climate change initiatives into the core functions of the organization. It is crucial for companies to develop a corporate strategy integrating efforts to mitigate climate change in financial investments, strategic supplier selections, and human resource practices. Without cross-functional support and knowledge sharing, businesses will unknowingly keep successful projects in a silo hiding from the rest of the organization. By opening up the discussion across all levels and functions of the company, businesses will finally start to realize the large gains that can be achieved through small environmental initiatives. Continuous evolution of these environmental practices will be an on-going challenge for all businesses in the new low-carbon economy. This Climate Change Integration Report is primarily based on research gathered through interviews with employees of ICT companies represented in the Global 500. The companies selected for inclusion in this study participated in the 2008 Carbon Disclosure Project (CDP). In addition to the company interviews and CDP surveys, data was procured and verified through company reports (annual/CSR/environmental), websites, press coverage, and other independent publications. At the time the research was performed, this was the most current and comprehensive dataset of corporate climate change activities available.

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9 Key Elements

The Climate Change Integration Report

9 Key Elements to Successfully Capitalize on ­Climate Change Initiatives In the course of our study, we identified 9 recurring elements that obviously mark efforts to successfully capitalize on climate change efforts.

1. Executive management must be committed at the highest levels of the organization. 2. Unlock successful climate change related business projects from their silo’s through crossfunctional support and knowledge sharing. 3. ‘Subject Matter Experts (SMEs)’ are catalysts in organizational awareness and development in integrating climate change. 4. Focus on increasing efficiencies is an enabler to reduce operating costs and CO2 emissions. 5. Strategic partnerships within the supply chain help companies get the most out of their climate change efforts. Consumer pressure is increasingly adding to the sense of urgency to disclose emissions and efforts relating to climate change. 6. Companies that proactively exceed the minimum regulation standards gain a competitive advantage over their peers and secure a long term license to operate. 7. HR departments need tools to effectively use climate change efforts for employee recruitment and retention, since employees want to work for organizations that are good corporate citizens. 8. Strategic communications on environmental and CSR programs including reporting strengthen a company’s reputation and brand management. 9. Companies should always include stakeholder dialogue and online social media in its communications plans for climate change related initiatives.

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Appendix

The Climate Change Integration Report

Appendix B. Project Background “The Climate Change Stakeholder Report” is a product of Pleon’s Corporate Social Responsibility Practice Group, lead by Arthur van Buitenen at the Pleon office in Amsterdam, the Netherlands. Authors of the report are Crystal Crawford Nielsen and Arthur van Buitenen. Questions can be addressed to [email protected] or arthur. [email protected], phone (+31 20 487 4000). Lead Author: Crystal Crawford Nielsen Co-Author: Arthur van Buitenen Project Team: Pleon NL, Amsterdam office: Crystal Crawford Nielsen, Arthur van Buitenen University of Amsterdam Business School: Ans Kolk and Jonatan Pinkse

Appendix C. About Pleon Pleon is an international consulting firm with European roots which creates and implements strategies for private and public sector organizations around the world. With deep understanding of business, politics and communications, Pleon is uniquely placed to devise compelling solutions which deliver measurable and tangible results. Going beyond traditional marketing and communications, we make a real and positive difference to our customers’ competitiveness and success.

Contact Information



Pleon, The Netherlands



Amsterdamseweg 206



1182 HL Amstelveen



The Netherlands



T +31 20 487 4000



www.pleon.nl

Appendix D. About the Universiteit van Amsterdam The Universiteit van Amsterdam (UvA) is one of the major comprehensive universities in Europe. The Faculty of Economics and Business at the UvA holds a strong portfolio containing bachelor, master and executive master programmes in Business, Accounting & Control and Finance for the domestic and international graduate and post-graduate market. Two renowned educational institutes of the faculty, the Amsterdam Business School and the Amsterdam School of Economics, manage these programmes. The Amsterdam Business School (ABS) hosts the Amsterdam MBA and the specialised Master of International Finance. Ans Kolk, Professor of Sustainable Management and Research Director of the ABS.

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