March 21, 2022
The First Quarter Sustainable Business & Enterprise Roundtable (SBER) Symposium, held last week on St. Patrick’s Day, was the first major event of 2022 for Sustainability Roundtable, Inc and our industry-leading Member-Clients. We are thrilled to be able to once again host hybrid events, having welcomed a group of local sustainability executives in person at the beautiful ART Hotel in Denver as well as sharing the event with our global Member-Client base virtually. A special thanks to our two wonderful presenters Andy Smith, Sr. Manager of Global Energy Management & Sustainability at Cisco Systems, and Mike Mattera, Director of Corporate Sustainability at Akamai Technologies.
The first half of the Symposium focused on global ESG strategy post-COP26 and the new Science-Based Targets Net Zero Standard. We discussed CEO-driven climate strategies, ESG reporting & governance trends, and goal-setting best practices to reach Net Zero.
SR Inc’s CEO and Founder Jim Boyle led a discussion on the corporate reactions to Putin’s invasion of Ukraine, which throw into high relief how fundamental values shape commercial value. Additionally, he spoke on the conclusions of UNICEF and the latest UN IPCC Report, which recognize human-caused climate breakdown as a health and human rights catastrophe with a “brief and rapidly closing window of opportunity to secure a livable and sustainable future for all.” A messaging strategy grounded in climate science and driven by CEOs, he argued, can transcend partisanship and even politics to offer needed societal leadership for the existential challenge facing all stakeholders.
Julia Rothfield, a Senior Analyst at SR Inc, laid out the state of the industry regarding reporting, dividing the dozens of global ESG reporting organizations into five primary categories: Governing Bodies, Internal Reporting, Target-Setting Organizations, External Reporting, and Investor Rankings. Jeff Meltzer, one of SR Inc’s Directors of Research and Consulting, analyzed the move towards integrated, mandatory reporting in the U.S., EU, and UK, reflecting on the increasing requirements driven by investor pressure in the marketplace. We look forward to the forthcoming guidance from the SEC regarding mandatory reporting in the U.S., set to be released in March 2022. While there are clear pathways to gaining brand value by addressing global environmental and social challenges, each company should choose their strategy based on their corporate purpose and functional “superpower.” (Note: the SEC released its proposed climate disclosure rules after this blog was initially published).
Additionally, this increased pressure has driven corporates to implement cross-functional ESG governance structures and processes that report to both senior management and the Board. According to a recent LinkedIn survey, hiring for green skills grew almost 40% globally from 2016-2021, but demand for green talent will soon outpace supply. This research forms the basis for SR Inc’s research into best practices for ESG budgeting and staffing throughout 2022. Our two Member-Client speakers shared with the group the state of Akamai and Cisco’s continually evolving ESG departments in which they sit.
Andy Smith, Sr. Manager of Global Energy Management & Sustainability at Cisco, next spoke on Cisco’s recent submittal of its 2040 Net Zero target to the Science Based Targets Initiative for approval. His team expects to achieve this goal by accelerating renewable energy usage, investing in carbon removal solutions, embedding circular economy principles across its business, embracing hybrid work, and increasing the energy efficiency of its technologies. Andy encouraged fellow executives to evaluate their environmental initiatives and goals regularly because best in class programs from five years ago can quickly become stale as science and best practices evolve.
In his role, Andy also leads on the FY25 goal to achieve net zero on global Scope 1&2 emissions. The primary strategy to meet this goal is sourcing renewable energy, which currently provides 85% of Cisco’s global electricity use. His team is also pursuing fleet electrification, energy efficiency, renewable natural gas, and electrification of heating systems as key strategies. The greening of local electric grids, Cisco’s hybrid work strategy, and carbon sequestration are also expected to help the company meet its Scope 1 & 2 goal.
We look forward to deepening our Member-Client-based guidance on global ESG leadership throughout 2022. Our next Symposium will be held in the Boston area on June 16th, with more details to come. Member-Clients can find a copy of the presentation deck from our Q1 Symposium in our Digital Library.
