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REco: Time to evolve beyond carbon tunnel vision

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By Susana Gago

· 9 min read


The rise of B Corporation (BCorp) certification represents a well-intentioned effort to incorporate social and environmental responsibility into the heart of business operations. Yet, there is an argument to be made that the current metrics fall into the trap of reductionism - too often focusing excessively on carbon emissions as the pinnacle metric of corporate social responsibility.

While BCorp certification has pioneered the shift towards more ethical business practices, it's time to evolve and diversify the metrics for a more rounded view of corporate responsibility. Expanding the indicators to cover these multiple facets will not only strengthen the certification's credibility but also empower corporations to become more holistic entities that positively impact the world in varied ways. 

The limits of carbon-centric metrics

Certainly, reducing carbon emissions is crucial for mitigating climate change. However, exclusively focusing on this narrow band of metrics renders us blind to a panoply of other equally meaningful indicators. It perpetuates a "carbon tunnel vision," overshadowing broader socioeconomic and environmental impacts.

A more comprehensive approach

For the corporate world to genuinely enact meaningful change, it's crucial to look beyond just carbon figures. Below are some proposed key performance indicators that should be part of forward-thinking certifications such as REco (Regenerative Ecosystem) to provide a more holistic overview:

Environmental indicators

1. Allocation of profits

Companies should be transparent about how much of their profits are allocated to social and environmental projects. This brings a quantitative edge to assessing a company's commitment to larger global causes.

2. Carbon removed vs Emissions

Simply reducing emissions is not enough. Companies should also work on actively removing carbon from the atmosphere. The ratio of carbon removed to carbon emitted could be a much more potent indicator of environmental commitment.

3. Waste generation by category

An inventory of waste generated by category - organic, metal, paper, plastic - can offer insights into resource efficiency, guiding companies towards sustainable choices.

4. Waste reduction Y2Y

Year-to-year comparison of waste by category can indicate a company’s earnestness in adhering to the principles of a circular economy.

5. Waste management systems

Companies should outline their waste management strategies, encompassing recycling, reuse, and other methods of disposal that minimize environmental damage.

6. Soil and land impact

The quality of soil (Soil Organic Matter), groundwater table levels, number of trees & species planted, and biodiversity increase, are valuable indicators of a company’s ecological footprint.

7. Logistics impact

Beyond carbon emissions, logistics can have impacts through sound pollution, road wear-and-tear, and other local environmental effects. These should also be measured and disclosed.

8. Regeneration of barren land

Land degradation is a severe global issue. Metrics indicating the hectares of barren land regenerated can be a powerful measure of a company's commitment to reversing environmental decay.

9. Air quality impact

Beyond carbon emissions, businesses can have other effects on air quality, such as releasing particulates, nitrogen oxides, and volatile organic compounds. Tracking these emissions would offer a fuller picture of a company's environmental impact.

10. Ecological footprint of products

Consideration should be given to the entire lifecycle of products - from sourcing to production to disposal. How do these products impact ecosystems and what is the plan to minimize these impacts?

11. Light and sound pollution

For companies operating in multiple geographies or close to wildlife areas, the impact of light and sound pollution could be important, affecting both humans and animals.

 12. Ecosystem services valuation

This involves putting a monetary value on the ecosystem services that a company either contributes to or depletes. This can be an eye-opening way of understanding a company's net impact on nature.

How is the company contributing to climate resilience? Are they investing in natural capital like regenerating barren land, mangroves, which both store carbon and protect against storm surges?

13. Material circularity

How close is the company to achieving a circular economy model for its materials? Are products designed for disassembly and recycling at the end of their life?

14. Native species protection

For companies involved in land development or agriculture, metrics around protection or restoration of native species are crucial.

15. Impact on indigenous lands

Companies should assess and disclose their impact on indigenous lands and the steps taken to minimize negative outcomes.

16. Resource sourcing sustainability

Is the company sourcing materials in a sustainable manner? Metrics could examine whether materials are renewable, recycled, or certified as sustainably sourced.

Raising the bar

Adding these dimensions can lead to a richer, multi-faceted certification system that covers a broader range of ethical concerns, thus helping consumers make better-informed decisions.

These additional environmental indicators would require rigorous data collection and auditing, but they would significantly strengthen the existing frameworks for assessing a corporation’s true environmental impact. With advancements in technology, particularly in data science and remote sensing, these metrics are increasingly within the realm of possibility to monitor accurately.

However, implementing these metrics isn't without challenges. They require rigorous auditing and may introduce operational complexities. But isn’t that the point? If corporate social responsibility is to be more than just a marketing gimmick, it should hold companies to high, multifaceted standards that genuinely benefit society and the environment.

Social indicators

The pursuit of corporate responsibility is a complex and ever-evolving journey. Beyond the indicators already discussed, here are some additional metrics that could offer a more nuanced understanding of a company's impact:

1. Employee well-being index

Metrics could include rates of burnout, mental health support provided, work-life balance, and overall job satisfaction. This offers a comprehensive picture of a corporation’s social responsibility towards its employees.

2. Local community engagement

How engaged is a company with the local communities where it operates? Measures could include local hiring ratios, community service hours, and investments in local infrastructure.

3. Life quality in supply ecosystem

Supply chain impacts cannot be ignored. Regular audits should be conducted to measure the quality of life for individuals within the supply ecosystem, including wage standards, safety conditions, and overall well-being.

4. Transparency and corporate governance

A score could be developed based on the transparency of a company’s financials and governance structures, including their stance on issues like executive pay and lobbying efforts.

5. Human rights compliance

If a company operates globally, it's crucial to understand how it upholds human rights standards. This could involve assessing supplier labour conditions, ethical sourcing, and adherence to international human rights agreements.

6. Female leadership increase Y2Y

Gender equality is an important measure of social progress. Metrics should monitor the yearly increase in female leadership within the company. 

7. Educational investments

Investments in educational programs or partnerships with schools could be a measure of a company's commitment to social upliftment.

8. Cultural sensitivity and inclusivity

This could include efforts to ensure that products and marketing are culturally sensitive, as well as metrics related to the diversity of employees beyond just gender.

9. Technological and informational footprint

How does the company handle data privacy? What is the environmental impact of their servers and digital activities? Are they taking steps to minimize this?

10. Adaptability to climate risks

How well-prepared is the company to adapt to the long-term risks posed by climate change? This could be measured through assessments of corporate strategies around climate adaptation.

11. Animal welfare

If applicable, metrics could be developed to assess a company's treatment of animals, be it in product testing, food production, or other areas.

12. Political neutrality and ethical contributions

How is a company's money used in the political sphere? Is it contributing to PACs or candidates that oppose social or environmental welfare? 

By integrating these additional layers, a certification like BCorp could offer a more multi-dimensional, holistic view of corporate behaviour. While capturing all these elements may initially seem overwhelming, the ongoing evolution of data analytics and monitoring technologies makes this an increasingly achievable goal. The main challenge will be in deciding which metrics matter most, given the vast and varied impacts that businesses can have on our world.

Holistic monitoring: A comprehensive look at living environments

In the ongoing discourse on corporate responsibility and sustainable practices, the magnifying glass often hones in on carbon footprints and waste management. Yet, to truly comprehend and sustain the health of our planet, we must widen our scope to living environments. It's not just about metrics in isolation, but understanding the interwoven tapestry of life that makes our ecosystems thrive. So, what should we monitor in a living environment?

1. Nutrient cycles:

Every living system thrives on a delicate balance of nutrients. From nitrogen to phosphorus, the cyclical flow of these essential elements underpins the health of our ecosystems. Monitoring nutrient cycles helps us understand the efficiency of nutrient use, detect imbalances, and intervene before irreversible damage occurs. For corporations involved in agriculture or waste management, understanding nutrient flow is paramount to ensure sustainable practices.

2. Water cycles: 

Water, the elixir of life, operates in a dynamic cycle. From evaporation to precipitation to groundwater replenishment, understanding the water cycle is pivotal. It's about gauging water availability, distribution, and consumption. With the looming threat of water scarcity, businesses, especially those heavily reliant on water, must monitor and adapt their practices to ensure sustainable water use.

3. Energy flow: 

The flow of energy, from the sun's rays absorbed by plants to the predators at the top of the food chain, is a testament to the intricacies of life. It's a continuum, and disruptions can spell disaster for entire ecosystems. By monitoring energy flow, we can ensure that energy consumption, whether natural or man-made, remains in balance with the ecosystem's capacity.

4. Diversity: 

Biodiversity is more than just a buzzword; it's the very foundation of resilient ecosystems. A diverse ecosystem is robust, adaptable, and more resistant to threats like diseases or climate change. Monitoring diversity isn't merely about counting species but understanding the roles they play, their interrelationships, and ensuring that no single species becomes disproportionately dominant or threatened.

5. Capacity: 

Every living environment has a carrying capacity – the maximum number of individuals or species it can support without degradation. Pushing beyond this capacity can lead to resource depletion and habitat destruction. Monitoring an ecosystem's capacity helps in setting limits, be it for resource extraction, tourism, or development.

Incorporating these monitoring metrics into our understanding of living environments presents a holistic, rounded approach to sustainability. For businesses and corporations, it means embracing an ethos that respects the intricate balance of life. In a world grappling with ecological crises, this comprehensive lens could very well be the key to unlocking sustainable, harmonious coexistence with nature.

illuminem Voices is a democratic space presenting the thoughts and opinions of leading Sustainability & Energy writers, their opinions do not necessarily represent those of illuminem.

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About the author

Susana Gago is the founder of UNAKTI, a female-led ecosystem dedicated to cultivating high-value medicinal and aromatic plants, and transforming them into pure raw materials for the Cosmetic, Health & Wellness industries. As part of her job at UNAKTI, she collaborates with local women farmers and communities, empowering them through regenerative medicinal forest cultivation to step up into leadership roles within their families and communities. 

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