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Sustainability reporting in tech companies – the hardware vs software divide

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Nature's fragility

Photo credit Koshyk

I wrote (and subsequently updated) a post a few weeks ago reviewing the Sustainability Reports of various companies in the technology space.

I updated the review again this afternoon (see the updated review below) with the 2009 reports from IBM, Adobe and SAS.

Something which struck me previously, and which hasn’t changed with the new rankings, is the yawning chasm in attitudes to sustainability reporting between hardware versus software companies.

Obviously this divide has a lot to do with risk – hardware companies who have significant manufacturing facilities, with massively complex supply chains, often containing toxic substances have far more exposure to risk than software companies.

This is reflected in the table below where eight of the top ten listings are hardware companies.

On the other hand, the bottom of the table is all software companies (with the exception of Apple – because they refuse to produce a sustainability report!).

The real odd one out though is the leader, SAP. Their sustainability reporting is out on its own. It is way ahead of any other organisation I have come across and this despite the fact that they are a software company!

One factor may be that they have a significantly European representation in senior management – they have a very different thought process when it comes to sustainability. SAP say they want to be an exemplar and an enabler – and, so far, they seem to be delivering on that.

None of the other software companies seem to take sustainability reporting anywhere nearly as seriously as the hardware companies.

Why do you think that is?

[table id=11 /]

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Where is Adobe’s commitment to Sustainability?

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Adobe

Photo credit midiman

I was extremely lucky to be given a tour of Adobe’s triple platinum LEED certified HQ in Palo Alto last year. I video’d highlights of the tour and posted them here. At the time I was extremely impressed with Adobe’s sustainability initiatives.

However, since then I have been more and more wondering if the building is a one-off and if Adobe has any significant commitment to Sustainability.

Why do I say this?

  1. Adobe’s 2009 CSR report, while slightly better than its 2008 report, it is still a triumph of style over content. There is no adherence to GRI reporting standards, no external audit and no mention of targets set or previous targets reached
  2. No-where on the Adobe site or in its CSR reports (that I could find) does it mention who in the organisation has responsibility for Sustainability. If no-one has overall responsibility for it, then we shouldn’t be surprised if it doesn’t get done
  3. Adobe’s LiveCycle Enterprise Suite gets a passing mention in the 2009 CSR report when it says

    The United States Government Printing Office used Adobe? LiveCycle? and Adobe Acrobat? to generate, authenticate, and disseminate documents electronically, saving more than 20 tons of paper and $1 million over five years.

    Where are the white papers or case studies to back this up? Surely others are using LiveCycle and also saving paper. Why aren’t we hearing more about them? Similarly for Adobe Acrobat Connect Pro, and

  4. A more trivial example, but as I reported a few weeks back, Adobe charge more for downloadable, soft copies of their software, than they do for physical shipped product (which includes carbon associated with media, packaging and transportation)! This wouldn’t be allowed to happen in a company with any focus whatsoever on Sustainability. Software companies should be actively pushing customers to downloadable versions of their products

So, if a company of Adobe’s size and success can get away with such a passing regard for sustainability – are companies who take corporate responsibility seriously like SAP, BT and IBM wasting their time and energy?

You should follow me on twitter here.

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Global telco’s sustainability reports reviewed

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Nature's fragility

Photo credit WTL photos

When I published my review of tech company sustainability reports a couple of weeks back, it was suggested that I should add in telco’s as well. Instead, for clarity, I decided to publish a separate review of telco sustainability reports here.

[table id=9 /]

Some points to note from the review:

  • BT & Telefonica both produced very good reports (though Telefonica’s was only in Spanish which limits how accessible it is outside of the Spanish-speaking world)
  • T-Mobile were let down by their chairman, Ren? Obermann, whose contribution was a cut & paste of an online interview he did a couple of months back as opposed to a report specific communication. Matters were made worse by the fact that the picture of the chairman in the report shows him with bottled water. In their Sustainability Report!
  • China Mobile produced an excellent report (in Chinese and English) which was let down only by the lack of external audit
  • Telecom Italia’s report was one of the best in terms of data transparency
  • AT&T’s 2008 report is very nicely laid out but it is dated, only to GRI level C and not externally assured
  • Telenor didn’t bother producing a report (that I could find) but they do have a Corporate Responsibility site while
  • 3 (owned by Hutchinson Whampoa) don’t have any Corporate Responsibility site or report that I could find on any of its sites. For shame.

If you have any updates or would like to suggest a company, please feel free to do so in the comments below and I’ll happily update the post.

You should follow me on twitter here.

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Tech company sustainability reports reviewed – Updated

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Corporate Social Responsibility
Original photo by ATIS547

I was asked on Twitter recently where to find a list of links to tech companies’ CSR reports.

I didn’t know where to find one, so I built one and as well as just the links, I also added in a few extra observations I noted about the reports.

[table id=4 /]

As previously reported here, the 2009 SAP Sustainability Report is superb.

Another company in the list worthy of note is BT, whose report, despite the lack of interactivity, is the only other report to hit the GRI A+ rating.

HP’s site has gone heavy on design to the detriment of usability which is unfortunate because some of the content is really good.

After that, almost all of the companies who have a 2009 report published have done a really good job. The exception to this is Microsoft whose 2009 report, while an improvement on previous reports, still has a long way to go to approach a professional CSR Report standard.

Of the companies who have yet to publish their 2009 report, Oracle and Adobe’s 2008 reports are lacklustre attempts, at best. Neither report to GRI standards and both are long on pretty pictures and short on relevant data.

Having said that, at least Oracle and Adobe are producing Sustainability reports.

The three laggards in this list are Google, Amazon and Apple – none of whom are producing sustainability reports at the minute.

In their defence, Google has its Going Green at Google website and Apple has its Apple and the Environment site, both of whom go into considerable detail on each companies initiatives. In Apple’s case, it does go deep into a lot of the data you would normally see in a Sustainability report. Why it refuses to produce a formal report is beyond me.

In contrast, Amazon’s attempt at an Environmental site/page is an embarrassment. If this is the best they can do, honestly, they’d be better off doing nothing.

One issue I noted was that HP, Cisco and Apple [PDF] all report on sourcing 100% renewable power in Ireland. This is not possible for the reasons I outlined in this post.

What other companies should I add to this list? Please feel free to suggest any in the comments and I will update the list.

UPDATES:
Since publishing this, Nokia have brought out their excellent 2009 report and it is now included above.
Also, based on suggestions received on FaceBook I have added details about 3 other companies (NEC, Fujitsu and Indra Sistemas). It was also suggested there that I go over various telco companies CSR reports. I’ll leave that to a separate post.

You should follow me on twitter here.

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Sustainable SAP

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SAP co-CEO Bill McDermott at SapphireNow 2010

I attended SAP’s Sapphire Now conference in Orlando earlier this week along with around 12,000 others.

It was a very interesting few days of talks, meetings, and showcases.

SAP’s commitment to Sustainability was evident throughout the event. The two keynote speakers invited by SAP were Al Gore and Richard Branson, for example – both of whom talked about the importance of sustainability to help mitigate climate change.

For me though, the most impressive statement that SAP considers Sustainability a strategic imperative, not just a sop to marketing, was the fact that both co-Ceo’s addressed Sustainability at length in their keynote addresses.

In my interview with Diversey’s CEO Curt Johnson a few weeks back he made the point that

CO2 is waste, so if you minimise CO2, you minimise waste and you maximise efficiency and increase profits

In his keynote on Tuesday morning, SAP co-CEO Jim Hagemann Snabe made the same point when he said that saving carbon emissions meant saving money. He concluded his keynote discussing SAP’s carbon reduction targets and how SAP’s sustainability solutions will help SAP’s customers reduce their emissions.

This ties in very strongly with the SAP Sustainability strategy which SAP Chief Sustainability Officer Peter Graf set forth during his presentation. SAP are committing to being an Exemplar and Enabler. By that they mean SAP will be an exemplar organisation in terms of its own sustainability initiatives and through its software solutions, it will enable its client companies to do the same.

Peter told me some time back that though SAP’s CO2 emissions were around 500,000 tonnes, their customers’ emissions were 10,000 times that! That’s a lot of emissions to be able to influence.

To that end, SAP’s on-demand Carbon Impact application seems to be coming along nicely now. I saw a pre-release of the upcoming version and it is starting to go beyond carbon impacts in terms of emission management, so I wonder how long before we have a re-brand! And SAP’s Sustainability Performance Management tool is a big help for companies wishing to track and communicate sustainability performance

SAP co-CEO's (and bottled water!)

SAP co-CEO's (and bottled water!)

I have written about how good their 2009 Sustainability Report was and how customers have been asking SAP to productise it. I asked Peter Graf during his presentation when he planned to deliver a Sustainability Report Generator to enable customers to also produce awesome sustainability reports but there are no imminent plans to release it it seems, which is a pity.

Despite the fact that both co-CEO’s had bottled water beside them during their keynotes at Sapphire Now (see pic), SAP have been quite consistently pushing the sustainability message for a while now. It is great to see. Hopefully some of SAP’s competitors will take note and the term Sustainability will go away because it will be synonymous with business as usual.

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SAP’s latest Sustainability Report is teh awesome!

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SAP's 2009 Sustainability Report using OAuth!

SAP released its 2009 Sustainability Report during the week and if last years Sustainability Report was good, this one is outta the park!

SAP released their first Sustainability Report in November 08 reporting on the 2007 year. It was a good initial effort (prepared in accordance with the GRI guidelines and achieving a ?C? level certification) delivered in your typical PDF format. The main innovation the first year was that there was a separate site for readers to leave feedback.

Then in May 2009 SAP released their 2008 Sustainability Report. This report achieved a B+ GRI rating and was far more interactive than the previous report (or any Sustainability Report I had previously seen). It allowed readers to interact with the data and showcased the interactive Sustainability Map which categorised core business processes related to sustainability and mapped them into distinct categories. Again SAP solicited feedback from users.

Now the 2009 Sustainability Report takes this to the next level. It:

  • achieved an A+ GRI rating by reporting on more sustainability GRI indicators and by adding new metrics, including Renewable Energy, Business Health and Culture Index, and Employee Satisfaction
  • includes the new edition of the Sustainability Map
  • establishes short- and long-term goals for many of SAPs metrics beyond carbon footprint
  • contains more embedded interactive dashboards leveraging data sourced from SAP Carbon Impact and SAP Business Objects Sustainability Performance Management
  • enables readers to comment on SAPs performance and solutions in the context of the report (no longer on a separate site) and
  • SAP will now produce quarterly updates on their carbon performance

There’s also the Materiality Matrix and the Create Your Own sections where you can try out different scenarios to see how they would affect SAP’s goals.

What do I love about this report?

  • I love how the two co-CEO’s went beyond simply putting their name to a letter at the start of the report (that’s so 2009!). They took the time out to record videos to introduce the Sustainability Report and talking about SAP’s commitment to sustainability.
  • I love the ability to leave comments on every page. The comment system allows you to login using your Twitter, LinkedIn, Yahoo, FaceBook, Google, or AOL credentials and uses OAuth for account verification. The geek in me just loves that (hence the screenshot above).
  • I love how the performance summary presents the data in stunningly simple to digest format. Clicking on the data here drills down into more detail on those numbers. The detail section is often highly interactive. For example in the carbon footprint section of the report you can see the carbon footprint by quantity, or by employee, by region or overall, by emission scope and clicking on a year gives a breakdown for that year specifically. Also, clicking on the printer icon allows you to print, while clicking on the Excel icon lets you download the data! and
  • I love how this report makes SAP’s sustainability data and their targets so transparent

Scott Bolick, SAP’s VP Sustainability Solutions, informed me that readership of SAP’s Sustainability report went from 3,500 for the 2007 PDF report to approx 30,000 readers for the online 2008 report. On top of that, many of SAP’s customers after looking at it, asked if they could purchase the technology to produce a similar report themselves! That’s a ringing endorsement right there.

It will be interesting to see what the readership of this report will be – you gotta suspect it will blow way past the 30,000 that last year’s report had.

[Disclosure – SAP are GreenMonk clients]

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Suddenly the business case for being an ethical, non-polluting business seems all the stronger

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BP Oil Spill

Photo credit NASA Goddard Photo and Video

Is the massive environment, health and safety (EHS) risks, which fossil fuel companies represent, starting to hurt their businesses?

Reading this morning about the Deepwater Horizon explosion and the continuing oil spill in the Gulf of Mexico I note that BP’s market value has fallen from ?122bn last week to ?102.5bn today – a loss of almost ?20bn in a week (or just over 16% of its value).

What has to be really worrying for BP investors is that

Things must be pretty grim at present in BP’s plush London HQ but it is not like BP have an exceptionally poor record by fossil fuel producers standards. For example:

And this EHS risk is not limited to oil and gas companies. On the contrary:

Massey Energy, the owner of the Upper Big Branch coal mine which exploded four weeks ago, killing 29 miners, has a terrible record of environmental and health and safety abuses. In fact, so bad are they that the FBI announced recently that they would be investigating Massey for the possible bribery of federal officials overseeing mining industry regulation and for potential criminal negligence.

Massey’s main competitors in the US are little better –

With the rapidly increasing number of environmental lawsuits taking place companies like the above are going to be spending more and more of their time in the courts with the consequent losses in time, productivity and reputation which that entails.

When you couple that with the growing interest in environmental issues being taken by the SEC, the EPA and investors and suddenly the business case for being an ethical, non-polluting business seems all the stronger.

After all, as many people noted on Twitter in the last few days, spills of air from wind farms or sun from solar plants are not going to have the devastating environmental consequences we have witnessed in the last decades as a result of our addiction to fossil fuels.

You should follow me on twitter here.

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Curt Johnson, Chair of Diversey, talks RoI of Sustainability, “CO2 is Waste” and energy savings

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Diversey invited me to attend their Climate Change Summit in Amsterdam earlier this week. I went along and was very pleasantly surprised by Diversey’s commitment to corporate sustainability.

Towards the end of the day I had a chat with Curt Johnson, the Chair of Diversey, about their sustainability initiatives. Some of the highlights of the conversation:

  • Sustainability goes back to Curt’s grandfather leading an expedition into the Amazon in the 1930’s! – 1:00
  • Curt’s father (Sam Johnson) banned CFC’s as propellants from all SC Johnson products before there was any legislative requirement – 1:20
  • A cost/benefit analysis shows that being sustainable produces ROI – 2:40
  • Diversey are tripling their target and now aim to reduce CO2 emissions 25% by 2013 over their 2003 baseline – 3:56
  • Diversey’s experience is that for every $1 invested in emissions reductions, they get $2 back – 4:30
  • Diversey are tripling their target and now aim to reduce CO2 emissions 25% by 2013 over their 2003 baseline – 3:56
  • CO2 is a waste by-product of our operations… if you can reduce CO2 it is inevitable that you will create a more efficient system that is more cost effective – 4:40
  • CO2 is waste, so if you minimise CO2, you minimise waste and you maximise efficiency and increase profits – 6:00
  • Diversey’s sustainability initiatives have a huge influence on employee morale, engagement and retention – 6:31

Some other great tidbits which were left on the cutting room floor were:

  • Diversey participate in the EPA’s SmartWay program to reduce the impact of shipping
  • Diversey intend to be the first company to publish the carbon footprint of all of their products on the products
  • Diversey have converted to a daylight office cleaning regime for a one-off cost of $100,000. This move is now saving Diversey 8% on their annual energy bill and
  • Diversey actively works with their customers to help them to reduce their chemical usage!
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Can corporate social responsibility affect your company’s bottom line?

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Nestl? share price drops

Your company’s share price can be negatively affected if you fail to behave responsibly in your business practices.

I have written here a couple of times about environmental risks companies could potentially face. This first time I wrote about this it was in reference to FaceBook’s decision to source the power for their new data center from a utility which uses coal-fired power primarily.

I followed that up with a post about how the EPA, the SEC and institutional investors are becoming more interested in environmental risk, asking companies to report on risks which may impact on a business’ sales, properties or even their reputation.

The importance of this has been driven home forcibly over the last couple of days as GreenPeace launched an international campaign targeting Nestl?. Why? Because it turns out Nestl? is purchasing palm oil from companies whose plantations cause deforestation of Indonesian rainforests with all the attendant knock-on effects this has (massive CO2 emissions, indigenous communities destroyed, and devastation of the Orang-utan’s habitat to name but a few).

As part of the campaign, Greenpeace launched a report called Caught Red Handed [PDF] outlining the connections between Nestl?, their suppliers and habitat destruction in Indonesia. As part of the launch campaign, Greenpeace had people on the ground at Nestl? offices in Orang-utan costumes publicising the report and they posted a spoof video on YouTube.

Unfortunately Nestl?, decided that instead of fixing their supply chain, that they should go down the censorship route. They quickly contacted Google and had the video removed from YouTube. Nestl? didn’t reckon with the Streisand effect though and in very short order the video was posted on vimeo and promptly re-posted on many other sites.

Nestl?’s lawyers quickly abandoned the take-down option realising they’d merely be playing a game of whack-a-mole if they continued. The storm of publicity which ensued even spread as far as CNN and within 24 hours Nestl? was forced to backtrack . The video is now back up on YouTube.

Nestl? censoring comment on FaceBook

As these things do, the debate took place on FaceBook and Twitter too with many people calling for a boycott of Nestl? products! In a classic social media shot to the foot Nestl? warned people:

we welcome your comments, but please don’t post using an altered version of any of our logos as your profile pic – they will be deleted.

Now, in any social media forum (or any forum for that matter), threatening people with censorship is definitely not a way to win friends or influence people. And predictably this threat inflamed an already upset audience. The censorship threat went viral and Nestl?’s reputation went into freefall.

The end result, as you can see at the top of this post, Nestl?’s stock price fell too.

This was eminently preventable.

And it is a clear demonstration of the need to be fully aware of all the potential risks in your supply chain.

If Nestl? was utterly transparent and ethical in its business practices, then it couldn’t have been ambushed by Greenpeace.

If Nestl? had ensured that its supply chain was completely free of controversy it would have avoided the pr storm, the reputational damage and the financial losses from loss of sales and the fall in its share price.

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Energy and Sustainability show for March 15th

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We had a couple of snafu’s on the show today. At the beginning of the show we had some calendaring confusion and a couple of people watching last week’s show thinking it was the live one!

Then I had a close call at the end of the show when I thought I had stopped broadcasting but left the camera and mic on inadvertently! While it is true I uttered an expletive, at least I didn’t do a Nellgate on it!!!

Here is the chatstream from the show:

Tom Raftery :
Hi everyone

?16?:?33
monkchips :
have i been watching last week’s show?
nice

?16?:?34
yellowpark :
hahaha

?16?:?34
monkchips :
well change the recurring calendar entry then …
?
16?:?34
Tom Raftery :
http://www.earthtimes.org/articles/show/313715,11-siberian-tigers-starve-to-death-at-chinese-zoo.html
http://www.wired.com/wiredscience/2010/03/chile-earthquake-moved-entire-city-10-feet-to-the-west
http://www.econbrowser.com/archives/2010/03/the_challenges.html
http://www.reuters.com/article/idUSTRE62E14Z20100315
http://www.guardian.co.uk/world/2010/mar/10/spain-barcelona-snow
http://www.huffingtonpost.com/2010/03/11/juanita-goggins-dead-once_n_495498.html
http://www.treehugger.com/files/2010/03/nokia-moving-into-kinetically-charged-cell-phones-files-new-patent.php
http://news.cnet.com/8301-11128_3-20000430-54.html?part=rss&tag=feed&subj=GreenTech
?
16?:?43
Joe :
some sense from the auto industry at last…
?
16?:?43
MikeTheBee :
Hi Tom, oh, no date display today?
?
16?:?43
Tom Raftery :
http://www.treehugger.com/files/2010/03/new-charging-method-could-mean-exponentially-faster-battery-recharge-times.php
http://www.nytimes.com//2010/03/12/opinion/12chase.html
http://www.grist.org/article/death-of-a-thousand-cuts

?16?:?47
monkchips :
Smith Electric Vehicles Eyes Road to an IPO http://bit.ly/b76p5F #logistics #WAYmoreinterestingthantesla
never mind Tesla, a logistics EV IPO!
?
16?:?48
Tom Raftery :
http://www.treehugger.com/files/2010/03/cisco-saves-over-24-million-with-packaging-diet.php
http://www.treehugger.com/files/2010/03/dell-launches-most-efficient-desktop-computer-to-date.php
http://www.viridity.com/blog/bid/36035/Top-7-Reasons-to-Remove-Orphan-Servers-from-the-Data-Center-Floor
http://www.ceres.org/ceresroadmap
http://www.decc.gov.uk/en/content/cms/news/pn10_042/pn10_042.aspx
http://www.guardian.co.uk/business/2010/mar/15/rbs-blinded-by-spin

?16?:?52
Ian B :
UK still has lead in wave and tide development – but for how long?

?16?:?53
MikeTheBee :
Ireland are working hard to take the lead.
?
16?:?53
Tom Raftery :
http://blogs.msdn.com/mspowerutilities/archive/2010/03/11/let-s-call-the-smart-grid-what-it-is-disruptive.aspx
?
16?:?54
Ian B :
Yeah should have said UK and Ireland
?
16?:?55
Tom Raftery :
http://www.guardian.co.uk/business/2010/mar/15/bp-shell-tar-sands-green-energy
?
16?:?56
monkchips :
this is the same company claims 70% of its employees are workin on cloud…?
?
16?:?57
Tom Raftery :
http://planetgreen.discovery.com/tech-transport/trash-wifi-afghanistan.html
?
16?:?57
monkchips :
superb!
?
16?:?58
Tom Raftery :
http://news.bbc.co.uk/2/hi/uk_news/england/hereford/worcs/8562434.stm

?16?:?58
Ian B :
Too right
?
16?:?58
Tom Raftery :
http://www.fastcompany.com/1575650/cleveland-mall-gets-a-new-life-as-a-giant-greenhouse
?
16?:?58
MikeTheBee :
But all his family keep the money
?
16?:?59
Tom Raftery :
http://www.avaaz.org/en/protect_the_elephants/
?
17?:?00
MikeTheBee :
No date stamp today?, Tom
np
He made 45mill
Thx Tom.
?
17?:?02
Tom Raftery :
Thanks everyone for your comments and interest
?
17?:?03
Ian B :
Thanks Tom
?
17?:?03
monkchips :
nice close! “oh fuck!”#
?
17?:?03
MikeTheBee :
I still find it strange that when I am *not* logged into Zoho chat the links are clickable, but after I log in they are not. Wierd or what.
?
17?:?04
monkchips :
dont have a hand shandy there tom, you’re still broadcasting…
?
17?:?04
MikeTheBee :
You are still *LIVE* Tom
?
17?:?05
monkchips :
how long are you over for? which show is it?
?
17?:?06
MikeTheBee :
THE END!
?
17?:?06
Tom Raftery :
LOL!!!
Thanks guys