From green product definitions and classifications to the Green Option Matrix

Hybrid cars, recycled products, photovoltaic cells, bioplastics: why so different products can be called ‘green’? Which practices companies willing to develop green products should implement? How companies can easily and effectively communicate to stakeholders the environmental features of their green products? This paper tries to answer these questions, by developing a Green Option Matrix (GOM), which characterizes green products and practices along different dimensions. This matrix is then used to analyze the different features of green products as well as related green practices developed by a sample of companies belonging to the Dow Jones Sustainability World Index (DJSWI). Relevant data are collected by means of content analysis of companies’ websites and sustainability reports. Green products and practices developed by each company in the sample are positioned in the matrix and results are presented and discussed for each industrial sector. Then, different sectors’ behaviors are compared. The proposed matrix can be used by companies as a market tool to analyze competitors’ green products and practices and as a communication tool to effectively communicate to stakeholders the specific green features of their products and practices.     

Assessing the quality of sustainability reporting: an alternative methodological approach

Against the background of the growing importance in corporate sustainability reporting, the Institute for Sustainable Management at the University of OAS in Aargau, North-Western Switzerland, instigated a research project in 2003. This represents one of the first attempts to perform a quantitative and qualitative analysis of corporate sustainability reporting in one country (Switzerland) and is the second and, at the time, most comprehensive national study worldwide on reporting practices. The object of this paper is to reflect the methodology of the Swiss study independent of other procedures used to-date. The extent to which the new methodological approach overcomes the weaknesses of other approaches will primarily be demonstrated. Secondly, the research team's findings from the results of the study and interviews with managers from 25 Swiss companies in connection with the study will be presented.     

Corporate social responsibility: sustainable water use

Freshwater scarcity is no longer limited to sub-Saharan developing countries; also in Western society, access to unlimited amounts of freshwater is not assured at all times. It has been argued - and laid down in many national legal systems - that access to freshwater is a basic human right. What if corporate freshwater use threatens to interfere with this human right? The main focus of the article is to explore the role of today’s companies in relation to freshwater. A number of tools have been developed to attend to the necessity to reduce corporate use of freshwater. The article discusses specialised water reporting instruments such as the 2007 Global Water Tool and the ‘water footprint’ calculation method. In addition, attention is paid to a CERES report (2010) revealing that the majority of the 100 world’s leading companies in water-intensive industries still has weak management and disclosures of water-related risks and opportunities. To obtain concrete information about corporate water strategies and practices, an explorative analysis was conducted on 20 Dutch multinational companies. The article highlights various innovative practices. In sum, it is demonstrated that companies are expected to bear responsibility for their impact on water resources, in particular when it influences public access to water in areas with freshwater scarcity and/or weak government. Notwithstanding the critical conclusions of the CERES report, it is interesting to see an evolution in corporate research concerning sustainable water use and the development of greener products and greener ways of production.     

Environmental reporting in a developing country: a case study on status and implementation in Malaysia

With the increase in awareness of environmental issues, the level of environmental disclosure and stakeholder demands for environmental information is increasing. New developments in the ISO 14000 standards also make it more evident that a company's environmental performance as well as its environmental reporting should be considered as strategic issues in business strategy. Especially for a developing country like Malaysia, many companies are under external pressures to improve their environmental performance.In this study, a review on the image and environmental disclosure, together with the challenges in environmental information management and a short case study are presented. Subsequently, the paper explores some of the strategic implications of environmental reporting as an important tool for improved environmental management.     

Corporate social responsibility in the mining industry: Exploring trends in social and environmental disclosure

In recent years, concerns about the sustainability and social responsibility (CSR) of businesses have become an increasingly high profile issue in many countries and industries, none more so than the mining industry. For mining, one outcome of the CSR agenda is the increasing need for individual companies to justify their existence and document their performance through the disclosure of social and environmental information. This paper explores recent trends in the reporting of such impacts and issues in the global mining industry. It offers a detailed review of the development of the media of social and environmental disclosure in the mining industry, and of the factors that drive the development of such disclosure. A temporal analysis of the recent trends in disclosure using a case study of the world's 10 largest mining companies is presented. Whilst there is evidence of increasing sophistication in the development of social and environmental disclosure, there is considerable variation in the maturity of reporting content and styles of these companies. The paper offers a simple classification of reporting companies, from ‘leaders’ to ‘laggards’. Stronger leadership and co-operation from the top reporting companies is necessary to support the laggards of the industry.     

Experiences of and views on third-party assurance of corporate environmental and sustainability reports

This study explores the development of environmental and sustainability reporting in Sweden and the dynamics behind the corporate decision to introduce, or not to introduce, third-party assurance of voluntary reports. The results are based on interviews with 28 Swedish companies, an analysis of corporate environmental/sustainability/annual reports as well as interviews with assurance providers. Between 1990 and 2003, the number of corporate voluntary reports increased and by 2003 approximately one-third of the reports were subject to third-party assurance. In general, the assured companies were positive in regards to the perceived benefits from third-party assurance, e.g. guidance on how to develop efficient internal reporting systems and increased credibility for published data. The companies without assurance were hesitant to adopt the concept. Their main arguments included the high cost of assurance and the lack of evidence that third-party assurance would result in enhanced credibility. According to the companies, the driving forces for the future development of assurance practices will most probably consist of a combination of proactive approaches from leading companies, generally accepted reporting guidelines and assurance methods, increased pressure from stakeholders and the general acceptance that third-party assurance creates benefits for the company and its stakeholders. In conclusion, this study calls for more attention to be paid towards establishing possible links between methods for third-party assurance and increased credibility for corporate environmental or sustainability reports.     

The environmental monitoring of large international companies. How and what is monitored and why

Monitoring is critical for environmental management. Environmental management decisions are dependent on monitoring; the same holds for reporting for legal purposes and reporting the environmental performance of the company. For improvement-based environmental management, an extensive monitoring system is needed. Such monitoring should be partly physical and partly financial. The core of physical monitoring should consist of materials accounting based on a mass balance of inputs and outputs of plants and measurements of releases. Financial monitoring should be focused on integrating all environmental costs into product costs. The aim of this survey is to find out how and what is actually monitored and why companies are conducting environmental monitoring. To address these issues investigations were carried out using structured interviews in seven large internationally operating companies. We found that legislation is the main reason for monitoring releases. The frequency of monitoring and which materials are monitored are also mainly dependent on legislation. None of the companies in our survey is using the extensive monitoring system needed for improvement-based environmental management. The financial part of the monitoring system was the least developed, but also the physical part showed many deficiencies. High uncertainties are possible in the results of monitoring. The companies studied have no comprehensive policy as to monitoring environmental costs and integrating these costs into product costs. The companies studied are monitoring environmental management system results infrequently. Accounting materials in order to determine a mass balance is not executed by the companies studied. Audits should be part of the monitoring program. All of the companies studied have regular audits. The audits are used mainly by most of the companies to control the working of the environmental management system.     

Using corporate social responsibility benchmarking framework to identify and assess corporate social responsibility trends of real estate companies owning and developing shopping centres

Shopping centres that include retail activities have come in for criticism as to their environmental, architectural and social impacts. However, the sector has been applying corporate social responsibility (CSR) practices. In an attempt to identify the best practices regarding CSR and trends therein we developed a CSR benchmarking of companies from the real estate sector owning and developing shopping centres. Based on information from websites, annual, environmental and sustainability reports, and customer services department’s information, in 2004 and 2010, a comparative CSR benchmarking was performed on 23 real estate companies with shopping centres based in Europe, China, Australia and the USA. The CRS benchmarking framework focused on reported CSR practices and included categories and sub-categories of evaluation in four domains: (1) external results, (2) internal results, (3) management processes and (4) learning and innovation. The framework was inspired by the sustainability balanced scorecard structure. The United Kingdom real estate sector’s companies studied did relatively well when evaluated by the framework used in this study. The highest ranked real estate companies applied sustainable or environmental buildings standards and did show a commitment to transparency and CSR disclosure. The positive evolution of CSR practices in the 23 companies studied in 2004 and 2010 may reflect efforts to improve competitiveness and the reputation of the companies with shopping centres through CSR initiatives.     

An inter-sectoral comparison of green supply chain management in China: Drivers and practices

The issue of green supply chain management (GSCM) has received increased attention in recent years among manufacturing practice and research. Yet, the corporate and environmental manufacturing issues in developing countries have not been as well investigated. This paper compares drivers and practices of GSCM in one developing country, China, focusing on three typical sectors, the automobile industry, the thermal power plants and the electronic/electrical industry. We sought to determine where the differences occur and which industries are further along. This study indicates that Chinese companies in different industries have differing drivers and practices. We tend to confirm that globalization and China's entry into the world trade organization have helped promote GSCM practices in manufacturing enterprises.     

Environmental management system and human resource practices: is there a link between them in four Brazilian companies?

The aim of this article is to analyze the theoretical model proposed by [Jabbour CJC, Santos FCA. Relationships between human resource dimensions and environmental management in companies: proposal of a model. Journal of Cleaner Production 2008;16(1):51–8.] based on the data collected in four Brazilian companies. This model investigates how the phases of the environmental management system can be linked to human resource practices in order to attain continuous improvement of a company's environmental performance. Our aim is to contribute to a field, which has little empirical evidence. Although the interaction between the phases of the environmental management system and human resource practices is recommended by the specialized literature [Daily BF, Huang S. Achieving sustainability through attention to human resource factors in environmental management. International Journal of Operations and Production Management 2001;21(12):1539–52.], the results indicate that most of the theoretical assumptions could not be confirmed in these Brazilian companies.     

Techno-economic assessment of recycling practices of municipal solid wastes in Cyprus

In this study, the application of modern recycling technologies in accordance with the European and Cyprus legislation, aiming at the recovery of paper, glass, plastics, aluminium and non-ferrous metals from municipal solid waste (MSW) is presented. The international situation was reviewed, the general trends are marked and the main recycling practices treatments are reported. The paper presents also an overview of the current practices and their environmental implications in Cyprus, and discusses the design and feasibility of a recycling plant located in Pafos area. Three recycling practices for recyclables that were separated at source, varied by their level of automation (0%, 50%, 100%), have been studied from the technical and economic aspect. It was considered that source segregation of organic part from the MSW takes place and no organic matter reaches the recycling plant. A sensitivity analysis was carried out in order to define the most significant parameters affecting the viability of a recycling scheme. It is proved that a fully automated recycling plant with a capacity of 6 tn/h of recyclables located in the industrial area of Pafos, seems to be conditionally feasible and economically profitable solution.     

Linkages between best practice in business and good environmental performance by companies

Is the adoption of currently accepted best practice in business associated with improved environmental performance by companies? What methods can be used to assess and compare the environmental practices and performance of different companies? In this pilot study, the business and environmental practices and performances of five companies in the metal working sector were examined and scored. The business practices and performances were assessed using the best practice model adopted in the Australian Manufacturers Council study (AMC, November 1994, Melbourne, 112pp.). The environmental practices and performance of the companies were assessed based on a five stage framework of business response to environmental issues presented here. A strong correlation was observed between environmental performance and business practices (correlation coefficient, r = 0.85, p < 0.05). The company closest to best practice had a strong focus on quality, efficiency and elimination of waste, well-developed strategy, good teamwork and a high level of commitment and also had the highest score for environmental performance. The company with poorest score for its business practices had the poorest environmental performance, with the remaining companies lying between on both scores. There was no significant correlation between business performance outcomes and environmental performance.     

Environmentally benign manufacturing: Observations from Japan,Europe and the United States

A recent international panel study (Gutowski T, Murphy C, Allen D, Bauer D, Bras B, Piwonka T, Sheng P, Sutherland J, Thurston D, Wolff E. WTEC Panel Report on: Environmentally Benign Manufacturing (EBM), 2000 on the web at; http://itri.loyola.edu/ebm/ and http://www.wtec.org/ebm/) finds Environmentally Benign Manufacturing (EBM) emerging as a significant competitive dimension between companies. With differing views on future developments, companies, especially large international companies, are positioning themselves to take advantage of emerging environmental trends. Among Japanese companies visited, the panel observed an acute interest in using the environmental advantages of their products and processes to enhance their competitive position in the market. In the northern European countries visited, the panel saw what could be interpreted as primarily a protectionist posture; that is, the development of practices and policies to enhance the well-being of EU countries, that could act as barriers to outsiders. In the U.S., the panel found a high degree of environmental awareness among the large international companies, most recently in response to offshore initiatives, mixed with skepticism. In this article, we survey EBM practices at leading firms, rate the competitiveness of the three regions visited, and close with observations of change since the study. Based upon these results, major research questions are then posed. In sum, the study found evidence that U.S. firms may be at a disadvantage due in part to a lack of coherent national goals in such areas as waste management, global warming, energy efficiency and product take back.     

ISO 14001 in environmental supply chain practices

This paper focuses on the role of ISO 14001 in environmental supply management practices in Swedish companies. It discusses the existing and potential role of ISO 14001 for three key operational tasks of environmental supply chain management: to communicate the requirements to the supplier, to motivate and enable the supplier, and to verify that the supplier follows the requirements. The study used three different research methods: interviews with environmental managers, focus group discussions and a survey of two multinational companies and their operating units in several countries.It concludes that cooperation between the purchasing and environmental functions within a company is frequently not sufficiently achieved in implementation of ISO 14001; this makes the communication of customer requirements to suppliers less efficient. Building close relationships with suppliers is important to overcome initial difficulties, but this often conflicts with having a large supplier base. For the supplier to have an ISO 14001 certificate is seldom an absolute requirement, however, preference is often given to such suppliers. The value of the ISO 14001 certificate, as a proof of environmental performance, is a combination of the supplier's environmental ambitions, the advancement of supply chain practices of the customer and the ambitions of the certification bodies. Supplier audits are not commonly used as they are resource-consuming. Monitoring and verification approaches need further development.     

Sustainability in the New Zealand wine industry: drivers,stakeholders and practices

This research aims to investigate various sustainability issues in the New Zealand wine industry. Namely, the study examines (1) what drives the industry to engage in sustainability practices, (2) the role of stakeholders in the company's decision-making, and (3) environmental practices related to water utilization, chemicals and waste management. A qualitative research approach supplemented by quantitative measures was adopted to answer the research questions. Twenty-four wineries were studied. The research found that the most important drivers for sustainable practices are personal values, preferences and satisfaction with the profession (i.e., enjoyment of the work itself), followed by product quality and customers' demand. Size of firm also appears to be an important factor. New Zealand wine companies are also driven by the market, but companies do not receive a price premium for grapes grown sustainably or organically grown. The study proposes a typology matrix that differentiates wineries' involvement in sustainability based on the extent of sustainability practices and sustainability drivers.     

An approach for estimating net primary productivity and annual carbon inputs to soil for common agricultural crops in Canada

The current interest in characterizing, predicting and managing soil C dynamics has focused attention on making estimates of C inputs to soil more accurate and precise. Net primary productivity (NPP) provides the inputs of carbon (C) in ecosystems and determines the amount of photosynthetically fixed C that can potentially be sequestered in soil organic matter. We present a method for estimating NPP and annual C inputs to soil for some common Canadian agroecosystems, using a series of plant C allocation coefficients for each crop type across the country. The root-derived C in these coefficients was estimated by reviewing studies reporting information on plant shoot-to-root (S:R) ratios (n = 168). Mean S:R ratios for annual crops were highest for small-grain cereals (7.4), followed by corn (5.6) and soybeans (5.2), and lowest for forages (1.6). The review also showed considerable uncertainty (coefficient of variation for S:R ratios of ∼50% for annual crops and ∼75% for perennial forages) in estimating below-ground NPP (BNPP) in agroecosystems; uncertainty was similar to that for Canadian boreal forests. The BNPP (including extra-root C) was lower for annual crops (∼20% of NPP) than for perennial forages (∼50%). The latter was similar to estimates for relative below-ground C allocation in other Canadian natural ecosystems such as mixed grasslands and forests. The proposed method is easy to use, specific for particular crops, management practices, and driven by agronomic yields. It can be readily up-dated with new experimental results and measurements of parameters used to quantify the accumulation and distribution of photosynthetically fixed C in different types of crops.     

Disclosure of climate risk information by the world’s largest companies

The risks related to global climate change are seen as threats to companies, taking into consideration their impact on the return on investment. In order to mitigate climate risk and introduce new opportunities to financiers, companies need to identify, manage, and report climate risks. The purpose of this paper is to investigate the climate risks disclosed by the 100 largest companies in the world, according to the Bloomberg and Price Waterhouse Coopers (PwC 2015) classification, and identify some characteristics of these companies that explain the disclosure level of such information. Preliminary results revealed that of the companies investigated, 14% did not disclose any climate risk information in the Carbon Disclosure Program (CDP) report. Also, from the companies that disclosed information according to the Global Reporting Initiative (GRI), 9.9% did not provide information regarding policies, actions, and strategies for mitigating the risks related to climate change. The results shown by the content analysis suggested that, in general, there is still a low level of disclosure about climate risks by these companies. The final results through econometric instruments and statistical tests indicate that the size of the company or the fact that corporations are from developed countries do not necessarily explain the level of information disclosed. However, the activity sector, the continent, and the efficiency of the Board of Directors are factors that strongly explain the level of climate risk disclosure. We conclude that more effort is needed to encourage an engaging attitude from corporations to develop actions, policies, and strategies to mitigate climate change risks and threats. In addition, the world’s largest companies should make a greater investment in climate risk disclosure.     

Pollution minimisation practices in the Australian mining and mineral processing industries

Research was conducted to identify some of the current pollution minimisation practices adopted in Australia's mining and mineral processing industries. Initially, 84 mining and mineral processing companies were approached for inclusion in the study, with request only made for information that was available to the company stakeholders and the wider general community. Among the responses received, BHP Billiton, BlueScope Steel, Newmont Australia Limited and AngloGold Australia provided the information requested and/or a substantial quantity of information through reports on their company website. Analysis of the data collected for these companies indicated that improvements were made, and that policies had been implemented over the previous few years. The pollution minimisation and policy practices adopted at the operations of these companies include environmental management systems, advanced pollution control technologies, environmental awareness training for employees, and requirement – from company stakeholders – for increased accountability of environmental impacts.     

Investigating corporate social responsibility in supply chains: a SME perspective

This paper analyzes the practices adopted and difficulties experienced by Small and Medium-sized Enterprises (SMEs) to transfer socially responsible behaviors to suppliers that operate in developing countries. In particular, a multiple case study was conducted on five Italian socially responsible SMEs. It was found that companies use different strategies as well as diverse management systems and tools to address Corporate Social Responsibility (CSR) issues along their supply chains (SCs). The paper is innovative mainly since few are the existing studies that investigate the CSR practices adopted by SMEs in the SC. Furthermore, it is argued that our research can be helpful to SME managers willing to deal with CSR issues along their SCs, especially when developing countries are involved.