Posts Tagged ‘Coca-Cola’

Is this where your savings are?

I have to say that it is one of my least favorite corporate practices – mountaintop removal or MTR. I just don’t see any sustainable benefit from it. And it’s pretty ugly too. So no surprise that people continue to target the industry for some activist scrutiny. 

Their latest target is JPMorgan Chase. Young activists are targeting JPMorgan Chase for underwriting “environmental Armageddon”. Harsh words but that’s in the nature of activism. Although I am interested in the MTR issue this specific campaign raises another long standing interest of mine – defining CSR and Sustainability for the banking and financial sector.

The recent economic meltdown raised serious questions on the role of banks and financial institutions and how they serve society. I’m not going to go there as it is well documented and an ongoing discussion. But I would like to propose we think of banks in a similar way that we look at other companies – via their value chain.

We ask of companies to be responsible by looking at the impact of their business operations as well as throughout their supply chain – upstream and downstream. It’s not good enough for a clothing company to only look at their own operations, they now have to have guidelines and systems in place to ensure their suppliers don’t commit human rights violations. Today we go even further by asking companies to also look at the environmental impact of their suppliers and to favor those who have a better environmental impact.

Of course we also ask companies to make sure that they take some level of responsibility for their products once they leave their stores. We expect computer manufacturers to offer some level of recycling and we want bottled beverage companies to take responsibility for the bottles they sold us. Heck, some cities and states help us (and the companies) to recycle these goods.

In short, we ask companies to make sure their products are manufactured in a responsible way and that they take responsibility even when they no longer ‘own’ the product.

Banking works the same way. We don’t want banks to make money through theft or money laundering and we don’t want them to fund terrorism or offer services to dictators or organized crime. That’s the easy part…

Why do we not expect them to take responsibility for the environmental impact of their services? Banks make investments that could threaten our future through global warming possible. Should they not be held responsible? Should we not measure the environmental impact of their money? Or rather, the environmental impact of their “investments”?

For me it goes beyond activism as we can then start measuring the impact of banks and financial services. We can make judgements on the values of these companies based on the impact they have – directly or indirectly. And the nature of CSR and Sustainability is to adapt to make it work for each industry. Maybe this is the way we can start figuring out the social and environmental impact of companies offering services – look at the impact they result in.

Maybe then we’ll stop funding everything in the name of profit. Or at least know what a responsible and sustainable bank looks like.

Do you know where your investment is going?


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