Microsoft’s ambitious carbon goals, Facebook joins internet freedom group and the US debates Burmese sanctions
Microsoft goes carbon neutral
Software giant Microsoft has revealed its latest environmental ambition: carbon neutrality.
The announcement came after the company met its 2009 goal to cut carbon emissions 30% per unit of revenue based on 2007 levels, which was achieved through energy efficiency measures and boosting renewable energy use.
From July 1, Microsoft will go carbon neutral by instituting a range of ambitious programmes targeting its internal operations, which span more than 100 countries.
One of the more innovative initiatives is a new, internal carbon fee (based on market prices for renewable energy and carbon offsets), which is meant to incentivise each business group to take responsibility for its carbon emissions.
All of Microsoft’s business groups will now build the price of carbon into their budgets. The groups will pay a carbon fee for each tonne of emissions associated with the operation of data centres, software development labs, office buildings and employee air travel.
So, for example, each group will not only pay the cost of electricity to a utility, but will also tack onto that the cost of offsetting the emissions from its electricity use. For corporate air travel, each group will pay the price of the ticket, plus the cost of offsetting the emissions from the flight, and so on.
All carbon fees will go into a central investment fund, which will be used to buy renewable energy and carbon offsets to help Microsoft achieve carbon neutrality.
Microsoft will also employ its technology savvy to monitor the carbon fee process, using both existing and new IT and finance systems. The company has partnered with Australian company CarbonSystems to implement an enterprise sustainability platform, which will continuously track company-wide environmental data, giving Microsoft a window into its emissions behaviour and revealing new efficiency opportunities.
Other impressive initiatives include a pilot programme on Microsoft’s Redmond campus in Washington, which utilises software to improve the building’s energy efficiency. The pilot is expected to achieve $1.5m in energy savings in the current financial year, and earn back the company’s investment in just 18 months, says a Microsoft spokesman.
Microsoft also published a white paper exploring the often-missed opportunities in IT to create efficiency and reduce emissions, not to mention generate cost savings.
Wal-Mart expands sustainability scorecard
In its fifth annual Global Responsibility Report, Wal-Mart announced that it would upgrade its global Sustainability Index scorecard to assess up to 100 major product categories by the end of 2011.
The scorecard started in 2010 using 15 questions to gauge its suppliers’ commitment to sustainability, and subsequently make their efforts (or lack thereof) known to Wal-Mart customers. The programme has been incredibly successful and, with more than 100,000 suppliers, has helped tens of thousands adopt more sustainable business practices.
For the new “Live Better” category scorecards, Wal-Mart will continue working with the Sustainability Consortium to gather data and establish key performance indicators for 100 product categories, such as electronics, food and clothing. Wal-Mart buyers will use these detailed scorecards to evaluate product performance; those who come out with top marks will be rewarded, while those who do not may risk being left off Wal-Mart’s lucrative shelves.
Mattel creates a new type of Barbie
A new Barbie is to join the famous play-doll family. But this doll from Mattel will not be a blonde, brunette or a redhead – she will be bald.
Following a wildly popular Facebook campaign started by the group “Beautiful and Bald Barbie! Let’s see if we can get it made”, led by parents whose children are affected by hair loss from cancer treatment and other illnesses, Mattel has announced that in 2013 it will produce and distribute 10,000 of these bald Barbie dolls. They will be donated “exclusively to children’s hospitals and other hospitals treating children with cancer throughout the US and Canada, directly reaching girls who are most affected by hair loss”, says Alan Hilowitz at Mattel.
The doll will come replete with accessories such as wigs, hats and scarves, to help girls enjoy these unique dolls as much as they would traditional Barbies.
The Children’s Hospital Association and CureSearch for Children’s Cancer will distribute the dolls throughout North America. The company also plans to donate dolls to the National Alopecia Areata Foundation. Hilowitz says Mattel is also working with its international subsidiaries to offer small numbers for donation.
“We made the decision not to sell these dolls at retail stores and profit from them, but rather more directly and immediately get these into the hands of children who can most benefit from a play experience with these dolls,” Hilowitz says.
Easier socially responsible investment
Leading global financial services firm Morgan Stanley Smith Barney (MSSB) has launched a socially responsible investment scheme – Investing with Impact Platform – which the company says will help its clients better align their investments with their values.
According to Christine Pollak at MSSB, the platform offers 70 products centred on positive social and environmental impact, without sacrificing financial return potential, and includes mutual funds, exchange traded funds, private equity, unit investment trusts, separately managed accounts and more.
MSSB also created four distinct categories to help clients more simply align their investments with the type of impact they want their investments to have: values alignment; environment, social and governance integration; sector exposure; and, impact investing. The first three involve investments in public equity and public debt, while impact investing covers investments in private equity and private debt. For example, a values alignment investment could be a mutual fund that excludes tobacco or firearms companies.
“We pride ourselves in our ability to analyse and identify promising investments, to construct portfolios, and to select high quality managers who are aligned with our clients’ specific needs and risk tolerances. Now, we are able to focus this expertise on investments that can deliver impact,” Pollak says.
Facebook a new GNI observer member
Facebook is the first company to join the Global Network Initiative (GNI) under the organisation’s new observer status.
GNI is a multistakeholder group of companies, civil society organisations, academics and investors working to protect and advance freedom of expression and privacy in the technology sector. Members commit to working together on these issues and implementing GNI’s principles within their organisations, which – in the case of companies – must also be independently assessed.
GNI recently established the observer status after hearing from companies that were interested in learning more about GNI but were not yet ready to commit.
To become an observing member, companies must complete a thorough application process. GNI then consults with its members and board to determine whether the company should be granted this special status.
As an observer, Facebook will be privy to GNI policy discussions, attend its annual forum, and join member-learning calls on internet freedom issues that arise throughout the year. Facebook also has the opportunity to schmooze with GNI staff and board members to better learn the responsibilities of membership.
Facebook is not, however, allowed to attend GNI board meetings or calls, and is also exempt from GNI’s independent assessment process. Observer members pay a membership fee that’s a percentage of what full members pay.
After the 12-month period, observing companies can choose to become GNI members or opt out, though the latter would undeniably raise some eyebrows.
“Building a better understanding of the value of the open internet, and its direct impact on job creation, education, and good governance, is critical, and precisely where the work of GNI can be useful,” says Facebook vice-president for global public policy Marne Levine.
American business and Burma
A host of American business groups have written a joint letter to the US president, Barack Obama, urging his administration to halt sanctions on Burma, for fear of missing out on the country’s ripening business opportunities.
Following Burma’s recent landmark election, the international community’s commercial interest in the country peaked considerably, as demonstrated by the European Union and Canada, which both quickly lifted sanctions.
Consequently, American business organisations including the American Petroleum Institute, the Business Roundtable, the US Chamber of Commerce, and nine others are pressing the administration to halt sanctions so American companies have an equal opportunity to invest in Burma and reap the financial rewards, particularly in the extractive industry.
“Permitting certain US sectors to invest while excluding others will not prevent those sectors from being developed in Burma; it will simply ensure that our competitors fill the void, as they are already doing, and that jobs which could be given to American workers will go to workers in Asia and elsewhere,” the letter states.
Human rights organisations, by contrast, have expressed serious concern about lifting sanctions prematurely, writing their own letter to the administration that states: “While companies are eager to gain a foothold in Burma’s economy, we believe that the goal of promoting positive political reforms in Burma will be jeopardised if new investments or other business activities reward individuals implicated in mass atrocities and other human rights abuses.”