A note from Mike Wallace:

November was a hotbed of sustainability-oriented activity, as you will read below. One of the most significant events of the past month was the election, which will result in national and international action on environmental and social issues, most notably GHG emissions. The Governors’ Global Climate Summit, hosted by Gov. Schwarzenegger, reinforced the changing international tone on these issues by bringing together hundreds of international dignitaries and business leaders to commit to a concerted effort to address GHG emissions.  President-elect Barack Obama was featured in a telecast where he outlined his own level of commitment and that of the US.

In addition, some of the world’s most well known companies convened in San Francisco this month to present their detailed efforts to reduce their water footprints. In other parts of the world, financial institutions committed to adopting climate principles that will affect their own operations, as well as those of their business partners and suppliers.

While certain sectors of the economy slow, areas that address resource management, operational efficiency and responsible business are finding access to capital. We expect this trend to continue as the new administration takes the reins in Washington.

Environmental Governance - Leveraging existing corporate governance systems to respond to the growing market demand for sustainability information.

Whether you have an existing sustainability program or are just beginning to contemplate one, Wallace Partners can help you focus your efforts in a manner that meets your business needs while addressing your most influential stakeholders' interests.

Here are some questions we can help you answer:

• What are the most important sustainability criteria for your industry and your company?
• What do your stakeholders really want to know about your sustainability performance?
• How do you compare with your competitors on sustainability?
• Is your sustainability performance being accurately communicated by your company, within the market and among your stakeholders?
• Are your departments (EH&S, IR, HR, PR, etc.) aligned and working together to address the growing demand for sustainability information?

Economic Growth Around Sustainability

Sustainability Executives Say Green Spending Increasing, Despite Weakened Economy
According to the findings of a recent study conducted by market research group Panel Intelligence, 80% of corporate sustainability executives surveyed across North America plan to maintain or increase levels of sustainability-related spending in 2009, despite current economic conditions.

According to the study,

• An increase of 73% in spending for sustainability and clean technology is expected through 2010
• Energy efficiency was identified as the most important current investment by 82% of respondents
• Corporate spending on sustainable waste management initiatives is expected to grow by 20%
• Cost savings, revenue generation, and brand strength are the 3 most important drivers in environmental and clean technology initiatives listed by respondents
• Nearly 55% of respondents observe no financial criteria (i.e. ROI, payback period) when evaluating sustainability projects for their respective organizations

The survey concludes that a majority of respondents believe capital remains available for sustainability projects.

The Economist Finds Corporate Citizenship & Sustainability to go Hand-in-Hand
The Economist recently published a report from their Economic Intelligence Unit recognizing how Corporate Citizenship can profit from a sustainable business. In their report, The Economist highlighted both tangible and intangible benefits of a sustainable corporate citizenship programs.

Office Depot Sees Interest Growing in Green Products
According to Office Depot’s Green Book, the company's catalog of green products, sales of environmentally preferable products represented increased by more than 10% in the contract channel in 2007. Findings also state that 69% of small businesses claim to utilize green practices.

The latest controversies to hit the financial sector are rippling through the sustainability community as a call for increased 'responsibility', 'transparency', and 'accountability', words synonymous with sustainability and corporate social responsibility.

Corporate Push For Sustainability

Five Major U.S. Companies Call for Congressional Action on Climate Change, Clean Energy
Five leading U.S. corporations joined with Ceres today to announce the launch of a new business coalition, the Business for Innovative Climate and Energy Policy (BICEP), calling for stronger U.S. climate and energy legislation in early 2009 to spur the clean energy economy and reduce global warming pollution.

The group's key principles include:

• Stimulating renewable energy
• Promoting energy efficiency and green jobs
• Requiring a 100% auction of carbon allowances
• Limiting new coal-fired power plants to those that capture and store carbon emissions

The founding members of BICEP include Levi Strauss & Co., Nike, Starbucks, Sun Microsystems and The Timberland Company.

Continued Financial Sector Interest in Sustainability

Trillion Dollar Investor Coalitions Unite on Carbon Reduction
Several trillion dollar investor coalitions announced their plan to issue a landmark joint statement calling on governments to reduce 50%-85% global GHG emissions cuts in developed countries by 2050 as recommended by the International Panel on Climate Change (IPCC). Signatories to the statement include CalSTRS and several large pension funds in Europe and Asia Pacific. Adoption of the emission cuts are believed to be accompanied by a global rollout of carbon cap-and-trade markets and carbon taxes.

Large Banks and Insurers Adopt Sweeping Climate Principles
Major financial institutions – including Credit Agricole, HSBC, Munich Re, Standard Chartered and Swiss Re – have adopted The Climate Principles, the first comprehensive industry framework for the financial sector in response to climate change.

These financial institutions have signed on to incorporate climate change-related risks and opportunities in the development of investment products. Corporate banks will develop and implement a methodology for assessing the climate-related risks in their lending and investment practices. The institutions will also engage significant suppliers on climate change issues and work with them to reduce GHG emissions throughout their supply chains.

Rankings, Ratings, and Indices

Climate Scorecards Released for Electronic Devices
Greenpeace recently released its 8th edition of the Guide to Greener Electronics, which scores electronics brands on a tightened set of chemicals and e-waste criteria as well as on new energy criteria.

The ranking criteria reflect the demands of Greenpeace’s Toxic Tech campaign to electronics companies. The guide is just another example of how companies are being rated on their ability to produce “clean” products, recycle throughout their production process, and improve their governance policies with respect to both Climate and Energy.

Consumer Electronics Association Sustainable Practices Report
Similarly, the Consumer Electronics Association published a report that examines sustainable practices in all areas of 64 companies from 2004 to 2007. The report states that sustainable practices are just better business as improved product design allows for less packaging, increased recycling and energy conservation, and an increase in a product’s usability.

2008 Corporate Social Responsibility Index
The Boston College Center for Corporate Citizenship and Reputation Institute released a new ranking of 200 responsible companies based on its 2008 Corporate Social Responsibility Index. The rankings focused on public perception about company's corporate citizenship, governance and workplace practices. Google, Johnson & Johnson and Campbell Soup topped the list.

Global Environmental 60 Index (GE60)
KLD Indexes and Jantzi Research have collaborated to create the Global Environment 60 Index (GE60). The index will consist of companies that derive 50% or more of their business from products or services that relate to environmental themes. The GE60 is the first index planned in a series of five environmental, theme-based indices.

New Green Seal Certifications
Green Seal announced its new Laureate Program to offer Green Seal certification to companies awarding them with bronze, silver or gold. Companies will be evaluated in five areas:

1. Environmental management, performance, and compliance
2. Environmental impacts by category
3. Supply chain
4. Life cycle assessment
5. Product

The certification seeks to recognize companies for leadership in meeting comprehensive eco-friendly standards.

How we can help

Wallace Partners offers a unique approach to assessing current conditions and integrating sustainability into organizations. We apply a methodology that builds on existing management systems, identifies unforeseen assets, and enhances operational efficiency. Our strategic approach will help you identify the financial and reputational benefits of measuring and strategically reporting sustainability performance data to priority stakeholders and the broader market. By identifying internal and external opportunities, we will help you lay the foundation for efficiently measuring and managing environmental, social, and economic performance, and disclosing sustainability information in a manner that:

• Increases business resiliency
• Reduces reputational risk
• Clarifies external perceptions
• Enhances access to investment capital, and
• Aligns with broader branding initiatives

We’ve recently helped clients achieve sustainability recognition through the Dow Jones Sustainability Index and the United Nations Global Compact.

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Featured Event

$100 Discount, VerdeXChange Green Marketmakers Conference, Los Angeles, January 26th, 2009
Wallace Partners is working closely with the organizers of this California AB 32 inspired Clean and Green Energy/Technology Marketing Conference and networking event. Speakers include California legislators, innovators, and state government officials.

In support of the conference, we are offering a $100 discount, which can be redeemed while registering for the conference, and typing in our code: Wallace.

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Recent Publications

Mike Wallace actively writes about environmental governance and sustainability issues. This month, he was featured in Fortune Magazine and the National Investor Relations Institute (NIRI) monthly newsletter.

Fortune Magazine
Fortune Magazine recently covered Mike’s role on the Steering Committee of the Global Initiative for Sustainability Ratings (GISR). Read the article here.

National Investor Relations Institute (NIRI)
NIRI recently released their November Update - featuring What Is Our Company's Carbon Footprint? The article provides an outline of how and why shareholders are comparing and contrasting corporations, and what companies can do to manage the increasing demand for environmental and social information.