Climate Change Growth Index

Jonathan Lash and Fred Wellington offered a guide to companies on how to create a competitive advantage in a warming world. Investors at the same time would like to understand which companies will be competitive. To fill this gap, RepuTex has developed what it hails as a world first climate change index based on ASX300 companies.

The backgrounder provided by the company suggests that :

“The onset of climate change presents a series of unprecedented challenges as well as opportunities for all companies in the world, including Australia. This emerging climate change-influenced economy means investors are faced with the complexity of understanding the risks and opportunities for growth and factoring them into their investment decisions.

RepuTex Carbon Series enables the investment community to better anticipate the risks and opportunities presented by climate change on company earnings and integrate these developments into informed investment decisions.”

RepuTex uses methods suggested by Lash and Wellington and goes beyond using what they call the “value chain database” - which quantifies the energy intensity of each component of a company’s operations. This approach enables RepuTex analysts to measure the impact of key risks and exposures across the entire value chain, and assess correlation with management capacity.

The following snapshot provides a view of what is covered in the analysis. Some 45 companies are part of the index now and it will be live in June.

Reputex

A Greener Apple

Steve Jobs released yesterday a note on the Apple website about a “Greener Apple”. This was Jobs’s attempt to communicate to the stakeholders of Apple about its environmental programs till date and its future plans.A Greener Apple

When Greenpeace released its “Guide to Greener Electronics” report, I was shocked to find Apple at the bottom of the list. I use a iBook G4 and a iPod Nano. I know what it means to use well designed products. I also knew that Apple’s laptops are one of the best in terms of energy-efficiency.

Good Design is one of the basis for a environmentally friendly product. It did not make logical sense that Apple could be at the bottom of the heap. As Jobs said, “Apple is already a leader in innovation and engineering, and we are applying these same talents to become an environmental leader.”

Now Steve Jobs letter explains how Apple is ahead of the other computer manufacturers and what its plans are for the future.

Some highlights:

Apple completely eliminated the use of CRTs in mid-2006.

Apple products met both the spirit and letter of the RoHS restrictions on cadmium, hexavalent chromium and brominated flame retardants years before RoHS went into effect.

Apple plans to completely eliminate the use of arsenic in all of its displays by the end of 2008.

Apple plans to reduce and eventually eliminate the use of mercury by transitioning to LED backlighting for all displays when technically and economically feasible.


Apple plans to completely eliminate the use of PVC and BFRs in its products by the end of 2008.

Apple recycled 13 million pounds of e-waste in 2006, which is equal to 9.5% of the weight of all products Apple sold seven years earlier. We expect this percentage to grow to 13% in 2007, and to 20% in 2008. By 2010, we forecast recycling 19 million pounds of e-waste per year — nearly 30% of the product weight we sold seven years earlier.

In the above comparison Jobs in his own style clearly demonstrated how much ahead Apple is compared to its competitors and at the sametime pointing to Greenpeace about its method of rating companies.

Jobs highlighted the importance of design and materials, especially the iMac.

Producers must also take responsibility for the design and material choices that create the product in the first place. It is these choices that fundamentally determine the weight and recycling value of material waste at the end of a product’s life. The iMac is a world-class example of material efficiency, having shed 60% of its weight since its debut in 1998. Our designs use aircraft-grade aluminum, stainless steel and high-grade plastics that are in high demand from recyclers, who recover and resell these raw materials for use in other types of products. Few of our competitors do the same.

Unique Lessons

Some unique lessons come out of this note from Jobs.

One, that communicating with your stakeholders is important. As Jobs suggests, even abandoning Apple’s policy of not discussing about the future is important in this scenario. By providing some information about its future environmental plans to its competitors Apple is gaining by communicating to its customers, shareholders and other stakeholders and gaining reputation.

Two, the viral nature of the note from Steve Jobs. Jobs previously wrote about his now famous “Thoughts on Music” suggesting the move to a non-DRM music from iTunes. That created waves. A sincere, direct note from the CEO was a great viral marketing idea. He replicates this again.

Three, What is the methodology used by Greenpeace in its report? Is is just based on plans or plans on releasing plans as Jobs suggest? Greenpeace needs to be have a more transparent and robust methodology in releasiing its reports.

Fourth, the importance of design and innovation in general and to environmental performance in particular. The iMac and the generational change seen in the iPod are both examples of how design can be useful in cutting down size, creating a better product and improving the environmental performance.

Learn from the Leaders

GreebBiz.com reports that “Strategy consultancy SustainAbility, CSR communications agency Flag, and data management system providers credit360 created a partnership to develop Learn from the Leaders, which contains benchmark research into sustainability reporting excellence. “

The database, called “Learn from the Leaders” contains more than 350 specific examples of reporting best practice drawn from over 100 of the world’s leading reporters including BT, Nike, Ford, BP, Rio Tinto and Shell.

“Extending reporting to help deliver real solutions to sustainability challenges has tremendous market potential and should be at the heart of any decision-making processes about transparency and stakeholders’ expectations.”

Each report in the database has been assessed across four principal categories: governance and strategy, management, presentation of performance and accessibility and assurance. The database offers users an assessment of how well a particular company explains and evaluates its sustainability activities, integrates sustainability into its business strategy and how successful its reporting approach is in meeting the needs of key audiences.

The quality of reporting has improved significantly since SustainAbility published the first Global Reporters survey ten years ago, as companies recognise that sustainability strategies, performance and reporting can and will deliver value and competitive benefits.

A free trial offer for one week is available after which it will cost US$7,500 for a Annual Subscription with a 10% early bird discount and a further 15% discount for registrations from emerging markets.

For people in reporting world this should be a invaluable tool.