EY Sustainability Matters

In a changing geopolitical environment, how can organizations stay true to their sustainability and environmental, social, and governance (ESG) goals? In this episode of Sustainability Matters, Bruno is joined by Matt Bell, EY Global Climate Change and Sustainability Services (CCaSS) Leader. Together, they explore the megatrends that will likely impact businesses over the next ten years, and the potential challenges businesses may face as they navigate the choppy waters of economic downturns, global conflict and forced regulations. In particular, Bruno and Matt discuss the evolving role of the Chief Sustainability Officer (CSO), and the responsibility for CSOs to look beyond short-term objectives and lead the C-suite in staying true to sustainability ambitions.  As more businesses begin to explore how environmental impact goes hand in hand with impact on people, how can they look beyond nonfinancial disclosures to drive organizational change? Additionally, how can businesses not only adhere to compliance standards, but go beyond to embrace sustainability and ESG throughout their corporate culture?  Matt and Bruno discuss the practical steps that businesses can take, and some of the ongoing CCaSS initiatives that can help clients achieve their sustainability goals. Finally, Matt also shares his thoughts for people looking to make sustainability a career and how everyone, regardless of their job role, can contribute.   Key takeaways include: CSOs and sustainability professionals should look beyond immediate performance to steer organizations on a long-term path to sustainability. Focusing on the social dimension of sustainability, and corporate impact on society as well as the environment delivers corporate value. Nonfinancial reporting is expected to achieve the same level of importance as financial reporting, which means that every area of the business should embed sustainability into their agenda. Global downturns, conflicts and financial crises are unlikely to interrupt ESG initiatives and can potentially accelerate them as organizations look at new business models and alternative energy sources. For your convenience, full text transcript of this podcast is also available. Read the transcript.   © 2022 Ernst & Young Global Limited

The podcast explores the increasing importance of social factors in business success, including diversity and inclusion. It discusses the challenges of measuring social impact and the need for reliable data. The private sector leads in developing social impact reporting strategies. Bank of America emphasizes the importance of transparency in social impact measurement. Collaboration and public-private partnerships are key in measuring social factors for health outcomes and establishing globally aligned standards for ESG reporting.

The theme of Earth Day 2022 is “invest in our planet” — and can be seen as a direct call to businesses and investors to act on reducing their adverse environmental impact. In the lead-up to Earth Day, Jennifer Leitsch, Managing Director in the  Climate Change and Sustainability Services (CCaSS) practice at Ernst & Young, LLP, spoke to Cynthia Curtis, Senior Vice President for Sustainability at JLL, about the challenges and opportunities of ambitious net zero goals, and the actions the real estate and construction sector, a significant contributor to greenhouse gas emissions,[1] should take now to achieve them. Earth Day 2022’s thematic shift from citizen activism to corporate action poses some important questions on industry actions and accountability. While carbon offsetting can often be described as one of the answers to a business’s carbon emissions, it is unlikely to be the only solution. And as offsetting measurements come under increased scrutiny, how can proposals such as the “Carbon Credit Quality Initiative,” spearheaded by the World Wildlife Fund and the Environmental Defense Fund, help provide confidence in credible and verifiable offsets? The collaborations among organizations can be an important step toward reaching net zero emissions. Public-private partnerships, governments and long-term policy changes could also be important to building a low-carbon economy, and helping incentivize more green business practices that are both ethical and lucrative. Many industries are increasingly aware of the possibility to have a sustainable and thriving business. Cynthia and Jennifer discuss why it’s time for businesses of all shapes and sizes to act: Tackling climate change has become less about individual activism and more about corporate action. Global ambitions of carbon neutrality have led to an increase in carbon offsetting, prompting a greater need for a standardized calculation system. Offsetting can be part of the solution. Market-based guidelines, such as carbon tax, could significantly accelerate change across global business. Public-private partnerships can be important in building the low-carbon economy. While the real estate and construction sector has lagged in setting ambitious emissions targets, third-party organizations could be important to supporting responsible growth in the sector. © 2021 Ernst & Young LLP

Looking ahead into 2022, the Sustainability Matters podcast welcomes Bruno Sarda, Climate Change and Sustainability Partner with Ernst & Young LLP and new host for the EY Sustainability Matters podcast series, chronicling the recent prioritization of environmental, social and governance (ESG) and the need for greater ESG integration into investor decision-making and corporate strategy. In this episode, Bruno reflects upon the series to date, highlighting key ESG issues, along with ways businesses can prosper while working harmoniously with the environment and society at large. Bruno showcases three personal highlights from previous episodes and their continued relevance today: Susan Hunt Stevens of WeSpire on engaging employees in ESG Steve Bradley of Cox Cleantech on building an enterprise through sustainability Steve Varley, EY Global Vice Chair of Sustainability, on the outcomes for business of the COP26 forum. Finally, Bruno looks ahead to the next 12 to 24 months, and the issues that could inform the ESG agenda: the increase in regulation and reporting obligations, the role of private capital and finance, and the effect of the COVID-19 pandemic as a dress rehearsal for the disruption to global economies that climate change could bring. Bruno also discusses the importance of the social aspect of ESG and how diversity and inclusion are set to remain prominent issues. The crucial catalyst for change is the move from ambition to action in transitioning to low carbon business models. The implementation of increased regulation and disclosure requirements will likely be strong motivators for change. The private sector and private capital should take a leading role in financing this transition. The COVID-19 pandemic appears to be accelerating a change toward new business models and that could make organizations more adaptable. The increased focus on racial, gender equity and diversity & inclusion (D&I) issues is likely to continue to gain prominence alongside the environmental debate.   © 2021 Ernst & Young LLP

The eyes of the world were on the 2021 United Nations Climate Change Conference – COP26. With the dust settling and negotiations in place, what progress was made in adhering to the 1.5℃ goal of The Paris Agreement? This episode of the EY Sustainability Matters podcast, features Steve Varley – EY Global Vice Chair for Sustainability. Steve was in Glasgow to attend COP26 and in this episode of the podcast, he discusses the experience of being at the conference in person, the likely impact of the discussions, the actions that should be taken to reduce emissions globally and the part everyone – including business – can play. The coming together of nations was a cause for great optimism, but the reality is that there is still more work to be done to keep the 1.5oC dream alive. This means that commitment and collaboration between nations, governments and business will likely be critical, and could need further progress on trust and transparency as a priority. Some businesses are actively and enthusiastically addressing environmental, social and governance (ESG) by innovating and adapting their business model, and providing customers with a more sustainable offering. Other businesses view ESG as less of a priority, so finding a way to demonstrate the value of sustainability and moving climate change to the top of the agenda could be crucial. For Steve, COP26 is a cause for optimism, creating an atmosphere of ambition and providing an opportunity to take meaningful action. © 2021 Ernst & Young LLP

In this episode of the EY Sustainability Matters podcast, Chris Hagler meets with Antonis Mavropoulos, author of “Industry 4.0 and the Circular Economy” and CEO of D-Waste, along with Mark Weick, Managing Director of Climate Change and Sustainability Services (CCaSS) for Ernst & Young LLP, to find out more about the circular economy, and how its union with Industry 4.0 could revolutionize waste management and help contribute to a more sustainable planet.  Most organizations recognize the need to create a more circular economy, but do they truly understand the concept? Are they willing to change their business model to leverage the opportunities? And do they have the leadership and teams required to meet the challenge? There’s also much to think about outside of the environmental challenges that most organizations consider to be the definition of a circular economy. Some subject-matter experts suggest it can be better thought of as the transformation of the whole supply chain, and the inclusion of societal and governance issues. The integration of these aspects could help make businesses more resilient and less wasteful. For Antonis and Mark, this is a chance to reshape thinking on how to tackle climate change. And that shape, is circular. © 2021 Ernst & Young LLP

The use of plastics has grown significantly in the past 50 years. Plastics are a versatile material that are a part of many household and industrial products. Unfortunately, plastic waste in the environment has also grown, particularly in the oceans, threatening natural ecological systems. One organization looking to tackle the plastic waste problem is Dow. As a materials science company and large manufacturer of plastics, Dow is using its expertise to design systems and technology to enable the use of complex plastic waste as well as support the collection of plastic waste. In this episode of Sustainability Matters podcast, host Chris Hagler welcomes Jeff Wooster, Global Sustainability Director for Dow Packaging and Specialty Plastics, and Jamie Mattison, Senior Manager in EY’s Climate Change and Sustainability Practice. Together, they discuss actions that businesses can take to enhance the plastics value chain, supporting increased collection rates with the manufacturing of materials from plastic waste. © 2021 Ernst & Young LLP    

Podcast host Chris Hagler is joined by guests Ann Meitz, Vice President of Sustainability and Packaging Innovation at 3M and Mark Weick, Managing Director in EY’s Climate Change and Sustainability Practice, and circular economy services lead. Together they discuss opportunities for circular transformation including product design, material sourcing, reselling byproducts, right-to-repair, and end-of-life management. The global production and use of food and consumer goods has a large impact on our environment and is anticipated to experience a tremendous increase. One study estimates that the growth of the global middle class by 2030 will result in consumers adding the equivalent of a second United States to global consumption. 3M is one consumer products business that is pursuing innovative changes to manufacturing and design to advance the circular economy. By thinking holistically about the impacts of manufacturing and product changes, 3M has shown that it is possible to reduce waste while achieving characteristics like enhanced product performance and even elevated end user efficiency. ©2021 Ernst & Young LLP

EY’s Chris Hagler chats with Susan Hunt Stevens, founder and CEO of WeSpire, to discuss how organizations can accelerate progress towards their ESG goals, improve company culture, and stimulate innovation, all by activating and enabling their workforce.

In this episode of Sustainability Matters, EY market leaders join Chris Hagler to discuss actionable recommendations for organizations to achieve their climate goals. Their conversation also looks ahead at the future and covers new instruments that are being developed that corporations can utilize down the road to either further solidify their climate commitments or take on additional initiatives. ©2021 Ernst & Young LLP