News Archive

Comer On CSR (1)

by msecadm4921

Mike Comer of Cobasco lays into the climate change and carbon emission trading sector.

On November 3, 2009, Justice Michael Burton ruled in the High Court that a 42-year-old<br>“Sustainability Manager” for a property firm had been unfairly dismissed because his employer<br>had discriminated against his “green views”. The Judge, who heard that the man was so<br>environmentally enthused that he refused to travel by air, concluded that “environmentalism<br>has the same weight in law as religious and philosophical beliefs".<br>Two years earlier, the same Judge ruled that Al Gore’s film “An Inconvenient Truth” featuring<br>the supposed imminent disaster of global warming – which he found contained nine gross<br>misstatements – could be shown to every British schoolchild provided it was accompanied by a<br>health warning on its political rather than scientific conclusions.<br>THINKSPEAK- NO LONGER GLOBAL WARMING<br>Like it or not, believe it or not, the global warming crisis (now rebranded as “climate change”,<br>simply because since 1998 global average temperatures have not risen) is the number one<br>priority item for most politicians – especially those in the EU – who promote the impending<br>disaster as a great excuse for compelling a woefully misinformed, but guilty and self-flagellating<br>electorate into accepting more government control and penal taxes. It is also at the heart of<br>many “Corporate Social Responsibility” (CSR) programmes that increasingly pressure<br>companies – and especially retailers – into vast expenditure to prove their green credentials.<br>The European Union defines CSR as “a concept… to integrate social and environmental<br>concerns into business operations on a voluntary basis” but for some companies the effort is<br>far from “voluntary” and more a headlong rush to “greenwash” their competitors and to appeal<br>to those customers who believe spending two pounds in store X rather than store Y will save<br>the planet.<br>ANOTHER BLOODY SURVEY<br>Here We Go<br>In February 2009, Mizz Fionnuala Walravens (for it is she) and other goodbodies at the<br>Environmental Investigations Agency (EIA), an independent campaigning organisation,<br>supported by Mizz Sophie Rivett Carnac of Spring PR Consultancy, released a report titled<br>“Chilling Facts”. This condemned many leading British food retailers for their unwillingness to<br>replace cooling systems that use hydro fluorocarbons (HFCs) as their refrigerant. It was a<br>worthy cause, but badly handled.<br>The report calculated that HFC emissions from retail freezers were equal to flying from London<br>to New York 2.5 million times or to more than 1 billion car journeys to an “average local<br>supermarket” or to 4,000 return flights to Australia. How, or why, such totally meaningless<br>comparisons were computed remains a mystery. Being generous, it is possible that they may<br>be relevant to those who make 2.5 million trips to New York.<br>The Co-operative Group<br>The Co-operative Group was singled out for criticism by EIA because it supposedly uses HFCs<br>in 50% of its depots and also had the audacity to refit some of its stores with the refrigeration<br>systems EIA found so offensive. Morrisons told the EIA to take a running jump. For this<br>effrontery they were rated at the bottom of the EIA’s league table; with the obvious intention of<br>pressurising the company into making changes.<br>AUTHORITY WITHOUT RESPONSIBILITY<br>The Authority of Jobsworths<br>What right do organisations such as the EIA have to poke their snouts into what is a very small<br>part of a much more complicated problem of which they probably have no real<br>understanding?. These days it seems any jobsworth can set up in virtually any position and<br>publish surveys or supposedly scientific findings, free of any responsibility or accountability.<br>They can avoid disclosing even the most glaring conflicts of interest. For example, is it<br>possible that the fragrant Fionnuala’s ex-partner, with whom she has the hump, works at<br>Morrisons: is she a major shareholder in a competitive store or is there some other personal<br>reason behind the adverse appraisal? Most likely none of these apply and Fionnuala, is simply<br>a very nice person in need of a name change. But we would never know if there was a conflict<br>of interest because promoters of surveys are never required to make any disclosures. If you<br>want to damage a competitor- rent a survey and brief against them.<br>No Personal Liabilities<br>An equal latitude is permitted of politicians. They can tell the most outrageous lies, disguised<br>as "spin", with a smile, tear or hand gesture – preferably holding a banana – with total impunity.<br>This is in stark contrast to the standards required of business managers who under such things<br>as the Companies Acts, Listing Rules or Sarbanes-Oxley face the most penal personal liabilities<br>for any transgression at work. It is time that Sarbanes-Oxley standards were introduced into<br>the media, scientific and political arenas.<br>THE IMPORTANCE OF FACTS<br>Stating the Bleedin’ Obvious<br>If the researchers at the EIA had seriously wished to provide a study of value they would not<br>simply have relied on questionnaires (even on recycled paper) but would have dug deeply into<br>the CSR positions of the companies on which they were reporting. The fact that these<br>goodbodies hoped to establish the facts through a simple questionnaire shows a remarkable<br>lack of understanding of human nature and is akin to sending out a circular to men asking<br>them to disclose the size of their todgers. Most sensible people would not reply and those that<br>did would exaggerate, with the result that conclusions are meaningless. You cannot expect the<br>truth when you ask Dracula if he has stopped sucking blood.<br>The Shining Star in CSR<br>In the case of the Co-operative Group deeper research would have found an overwhelming<br>effort to be socially responsible: a fact that is abundantly obvious to anyone prepared to read<br>the 145, print packed, pages of its 2008 "Group Sustainability Report”.<br>Although the Co-op’s cream doughnuts are nothing to salivate over, and its television ads are a real<br>turn-off with their affected Scottish voice-overs, it has won just about every award possible for<br>its CSR programs. The Co-op is a shining star in the world of CSR. In fact it is so “sustainable”<br>that it is difficult to decide whether it is a top retailer with an effective CSR program or a Vatican<br>outpost that happens to sell carrots and cabbages.<br>The researchers would also have found that the Group had committed plans to invest £200<br>million over the next four years to replace its HFC refrigeration systems. Maybe these will not<br>be installed with the urgency that the EIA required, but they were already part of a<br>comprehensive plan for environmental sustainability in all of the Group’s operations. With CSR<br>you have to look at the whole picture and not just nitpick.<br>CLIMATE FRAUD – FRAUD CLIMATE<br>The Effects of Messianic Zeal<br>People’s concerns with CSR programs may not be with their value but more usually because of<br>the messianic zeal with which all aspects of global warming are pursued; starting with the<br>initiating climatology “science” through to the Intergovernmental Panel on Climate Change<br>(IPCC), political initiatives and abatement actions. An attitude often prevails in which anyone<br>who asks questions is immediately branded a “sceptic”, “denier” or “criminal”. For example,<br>James Hansen of NASA’s Goddard Institute of Space Studies (who is to Global Warming what<br>Colonel Sanders is to Kentucky Fried Chicken), called for trials of climate sceptics for "high<br>crimes against humanity". He also urged the closing down of coal fired power stations calling<br>them "factories of death” and the trains carrying coal to them “death trains". This is a deliberate<br>echo of Nazi death camps and shows just how extreme “alarmists’” arguments are becoming<br>and how determined they are to suppress dissent. If the global warming case is so “settled” or<br>“unarguable” why are “alarmists” so nasty, unprepared to debate or to allow their findings to<br>be scrutinised? You don’t have to be a climate scientist to know that if people refuse to<br>answer questions, watch out.<br>Climate Cops<br>A similar sort of manic enthusiasm is reflected in some CSR programs. For example the<br>massive electricity supplier- nPower- has a program referred to as "Climate Cops" which both<br>directly and through schools encourages children to snoop, record and report on<br>environmentally improper (or in luvvyspeak – “inappropriate”) behaviour by their parents and<br>friends. The campaign encourages rug rats to download colourful “crime cards”, which have<br>space to record their parents’ transgressions. Kids issue “tickets” and report back to their<br>teachers. They are also provided with James Bond type assignments –like rummaging through<br>their dads’ golf bags to find the odd dog end. If they pass they qualify for membership of an<br>elite Academy. What next? Maybe an SS badge.<br>CSR STYLE<br>A “ Robert Maxwell”, dominating management style is evident in some aspects of the CSR<br>world where those in charge operate in a monoculture where everything not environmentally<br>friendly is immediately condemned. Worse still, the interests of social responsibility can distort<br>the criteria on which business judgements are based, thereby giving those in charge of CSR<br>programs far greater power than would otherwise, or should, be the case.<br>This type of inflated authority applies in such areas as vendor selection, choice of carbon<br>offsets projects and sponsors, construction of renewable energy facilities, long-term<br>procurement of supposedly green energy: among others. These are all highly exposed to fraud<br>and corruption because they introduce subjective, complex and obscure criteria into decision<br>making processes. And line managers may be afraid to ask questions for fear of being branded<br>“sceptics”.<br>ENERGY AND POWER FALSE ACCOUNTING<br>Energy and Carbon Emissions<br>There can be a problem over the way in which emissions and emission savings are calculated.<br>Just check for yourself on the vast numbers of Internet sites that calculate carbon footprints.<br>You will find a massive disparity. Some suggest that for every gigawatt hour (GHw) of electricity<br>used, 300 tonnes of carbon dioxide will be emitted: others say 540 tonnes and one 900<br>tonnes. There is a big difference.<br>The British Wind Energy Association (the trade association representing turbine suppliers)<br>originally promoted a ratio of 860 tonnes of carbon dioxide per gigawatt hour, thereby proving<br>that wind turbines were extremely effective. However, after the figure was questioned, the<br>factor was reduced to 430 tonnes: a big difference, with no explanation. Was the mistake<br>accidental? What do you think? It resulted in many wind farm planning applications and<br>investment returns appearing twice as good as they were. There is a lot of false accounting in<br>the carbon world.<br>Some Internet sites, having calculated what a dreadful emitter you are, will offer to sell you<br>offsets. Of course these do nothing to reduce your emissions and can be compared to the<br>ridiculous indulgences provided by Pope Leo X in the 16th century. One site calculated a<br>colleague’s emissions at 336.65 tonnes per annum and suggested that if he were to buy -<br>from them of course – 337 eucalyptus trees in Abyssinia for £1,700 everything would be okay.<br>This was a hopelessly ineffective remedy because as everyone but a raving idiot knows and<br>discusses over breakfast, these trees sequester only 50 pounds (or 0.026 tonnes) of carbon<br>dioxide each per annum. Thus it would take a forest of 14,000 trees – planted every year- to<br>indulge his transgressions. There is a big difference.<br>If you read the CSR reports that some companies issue you will find that they fall into the same<br>trap and misrepresent such things as carbon dioxide emissions or the efficiency of offset<br>mechanisms. They also happily confuse “capacity” with “load” for renewable energy and<br>especially wind turbines. These facts have not gone unnoticed by the Advertising Standards<br>Authority and some companies have been exposed. And luvvies should consider this: if<br>companies lie to them about sustainability stuff can their other claims – like raising their<br>chickens in luxury at Hilton Hotels – be trusted?<br>Measurement of CSR Programs<br>The success of CSR programs is difficult to measure and there are at least eight different<br>commonly used methodologies, ranging from fairly simple balanced scorecards through to<br>complex systems such as the Global Reporting Initiative, G3 standard. The criteria used by<br>these alternative systems vary widely and they can be “cherry picked” to produce the best<br>results, thereby hiding less than optimal performance.<br>Few of the systems enable the summarisation of costs and benefits or take into account more<br>innovative possibilities such as compulsory organ donation, condom recycling or sponsored<br>fire eating. The bottom line is that a universal, comprehensive standard is required for<br>assessing CSR programmes that includes really important things like supplier payment<br>policies, litigation records, fines and other punishments as well as all aspects relating to<br>regulatory compliance and fair accounting.<br>There are also serious problems about renewable electricity and claims made by companies<br>that they have gone entirely green with energy. In fact, as of January 2009, the UK generated<br>a total of 21,597.50 gigawatts of renewable electricity. Yet if you were to add up CSR claims<br>you will find that this total is exceeded. Again the suspicion is of false accounting.<br>Compliance with Kyoto: The Good News<br>The good news – for anyone laying awake at night, tossing and turning, worried that the UK will<br>not meet its carbon dioxide reduction targets under Kyoto- is that there is no doubt that we will<br>surpass them but only providing New Labour remains in power. Our present leaders are<br>unquestionably world-class at achieving targets including policing, health service, pensions,<br>immigration, social security and equality. You name it and these boys can achieve it, mainly<br>because their credo of “what gets measured, gets managed” is applied as “what gets<br>measured, gets manipulated”.

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