The CSR Newsletters are a freely-available resource generated as a dynamic complement to the textbook, Strategic Corporate Social Responsibility: Sustainable Value Creation.

To sign-up to receive the CSR Newsletters regularly during the fall and spring academic semesters, e-mail author David Chandler at david.chandler@ucdenver.edu.

Thursday, November 8, 2007

Strategic CSR - Carbon Labels II

The article in the first url link below demonstrates the growing impact of carbon footprints in the UK (Special Cases of CSR: GM Labeling, p293):

“Carbon footprints provide a measure of how much of an impact an individual or company is having on the planet, and a carbon label is an indication of the amount of carbon dioxide emitted as a result of producing goods and services. This information is difficult to estimate without detailed knowledge of the producer's methods, so consumers and investors have little idea of a company's carbon footprint, or the footprint of what they buy, unless companies choose to disclose it. … Walkers Crisps then put the first carbon label on packets of its crisps. More companies followed: Timberland, Coca-Cola, Halifax, Muller Dairy and the brewer Scottish & Newcastle are all committed to either carbon labelling or footprinting.”

In spite of the enthusiasm, however, the processes used to generate these carbon profiles are still evolving and there is little informed agreement about both their reliability and validity at this stage:

"Quoting results in grams of C02 per product suggest a high level of accuracy that is not possible on a large scale today. Much of the data required is not readily available so many assumptions need to be made which reduce the accuracy of the calculation. … Another concern is that there is as yet no standard way to perform the measurements. "Companies typically spend 2-3 months doing footprint analysis for their first product and even then results are contentious due to methodology."

The article in the second url link below demonstrates the importance of having an holistic perspective in viewing a firm’s supply chain, especially when estimating the environmental impact of specific food products:

“While much consumer and media attention has recently focused on "food miles", transportation, it turns out, is only a small part of the carbon footprint of food. Meanwhile, food and agriculture are responsible for a wide range of environmental impacts ranging from food waste and water use to nitrogen run-off and methane emissions from livestock.”

The complexity of the problem is paralyzing, especially when considering the institutionalized production processes in farming and other financial barriers to reform:

“"It's just that it's such a diverse group of stakeholders and there's not enough technical research or grant money available to farmers to allow cost sharing when adopting some of these sustainable strategies." For food and agriculture businesses, another challenge is to introduce sustainable practices in an industry in which rising commodity prices are eroding margins.”

Take care
Dave

Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther

FT REPORT - SUSTAINABLE BUSINESS 2007
http://www.ft.com/reports/susbusiness2007

Food footprints coming soon to a label near you.
By FIONA HARVEY
900 words
12 October 2007
Financial Times
Surveys SUB1
Page 4
http://www.ft.com/cms/s/1/cb820020-76e7-11dc-ad83-0000779fd2ac,dwp_uuid=f89cd9c6-7567-11dc-b7cb-0000779fd2ac.html

Food chain is complex.
By SARAH MURRAY
822 words
12 October 2007
Financial Times
Surveys SUB1
Page 7
http://www.ft.com/cms/s/1/ceb3bf22-76e7-11dc-ad83-0000779fd2ac,dwp_uuid=f89cd9c6-7567-11dc-b7cb-0000779fd2ac.html