17/11/08

US: Despite Economic Crisis, Consumers Value Brands' Commitment to Social Purpose, Global Study Finds

According to the news reported by csrwire.com, new findings from this year's goodpurpose(TM) global study of consumer attitudes reveal that nearly seven in 10 (68%) consumers would remain loyal to a brand during a recession if it supports a good cause, and 71% say that when they think about the economic downturn, they have either given the same or more time and money to good causes.

According to the news, the study was released by goodpurpose(TM), a consultancy at Edelman dedicated to connecting brands and companies with consumers around a powerful, involving social purpose idea for mutual benefit.

These findings, part of the second annual goodpurpose(TM) study, convey the eye-opening yet encouraging news that recent economic events have not had a negative impact on consumers' contributions to good causes. Despite the downturn, across the globe people’s sense of commitment to helping others -- and to brands and companies that share that commitment -- remains strong. The survey queried 6000 consumers in 10 countries (1) and was conducted in August, September and October by StrategyOne.

"Brands that engage in social purpose can do more than just stand out in the marketplace," said Mitch Markson, president of Edelman's Global Consumer Brands practice and founder of goodpurpose. "They can bring 'double value' to their customers, who get a product they want, plus support for a cause they believe in. Since 58% of consumers globally think it's OK for brands to support good causes and make money at the same time, marrying profits and purpose may prove to be a powerful strategy during these harsh economic times."

Consumers in China lead the way, with 58% indicating they are giving more despite the economic downturn. Women are more likely than men to agree that "during a recession it is still important for brands and companies to set aside money for a good cause or purpose" (82% v 78%) and that "if a company has to cut its costs during a recession it should not stop giving to good causes" (75% v 70%).

News report by csrwire.com / | November 17, 2008, available at:http://www.csrwire.com

UK: Cadbury Cuts Water Use 10 Percent

According to the news reported by greenbiz.com, though its water conservation strategy is still in the early stages of development, Cadbury cut its water use 10 percent last year compared to 2006.

The United Kingdom-based candy maker trimmed energy use, too, and appears to be on track to meet a 2020 carbon dioxide emissions reduction goal.

The company disclosed these details in its recent 2006/2007 Corporate Responsibility Report released Friday. Cadbury also highlighted the challenges it faces trying to implement a sustainability strategy across its operations that span continents.

It plans to put in place water reduction plans at all of its global sites deemed "water scarce." Several Asia and Pacific manufacturing facilities have already set water neutrality goals, which they'll reach for by carefully managing and reducing water use, and treating and capturing waste water. By 2020, the company hopes to reduce its water use 20 percent.

According to the news, the company reduced carbon dioxide emissions 3.6 percent below 2006 levels in 2007. But the 818,686 tons of emissions in 2007 were actually slightly higher than 2005 levels. Cadbury predicts it will reduce emissions 10 percent by 2010, and plans to slash absolute emissions in half by 2020, with at least 30 percent coming from in-house actions.

One of the more challenging environmental goals involves packaging, which must keep products fresh and safe. The company has tested several packaging materials in an effort to cut total consumption, including a new range of Easter Eggs wrapped only in foil without a cardboard box. Cadbury wants to reduce product packaging 10 percent per tonne of product, and by 25 percent for seasonal products. The company also worked with the Carbon Trust to measure the carbon footprint of its Cadbury Dairy Milk candy bar supply chain, and is expanding the approach to other products.

News report by greenbiz.com | November 17, 2008, available at: http://www.greenbiz.com

World Bank: World Bank Issues First ‘Green’ Bond

According to the news reported by environmental-finance.com the World Bank has issued its first bond where the proceeds will be directly invested in climate change-related projects. The bond is the first product of a wider Bank effort, in collaboration with large institutional investors, to direct large-scale institutional money to tackling climate change.

According to the news, the Bank has raised around $300 million in Swedish krona-denominated six-year bonds, sold by Swedish bank SEB to Scandinavian institutional investors. The money raised will be invested exclusively in technologies that reduce greenhouse gases, energy efficiency projects, reforestation or avoided deforestation projects, or to help developing countries adapt to the effects of climate change.

“This was very much based on demand from key investors,” Heike Reichelt, head of investor relations at the World Bank, told Environmental Finance. “SEB has had very positive feedback – we think there will be interest in other markets in Europe and maybe in the US.”

Doris Herrera-Pol, the global head of capital markets in the World Bank treasury department, added that about two thirds of the bonds were sold to life insurance companies, with the remainder going to pension funds, with some – but by no means all – bought by their dedicated socially responsible investment (SRI) portfolios.

Until now, the proceeds of all World Bank bonds – including a handful whose returns are linked to environmental equity indexes or carbon credits – went into a general pot. However, a spokesman said that SRI investors had wanted to ensure that their investments were directed towards climate change projects. “This allows us to expand our financing for climate change” by tapping into a hitherto closed pool of capital, he added.

Herrara-Pol said that, as well as the bond’s environmental benefits, the bond investors were also looking for high-quality assets that paid commercial returns. The triple A-rated bonds will pay a coupon 0.25% above Swedish government bond rates.

Meanwhile, Reichelt confirmed that the World Bank is in “the very early stages” of exploring ways to develop products that allow institutional investors to provide large-scale financing to address climate change.

News report by environmental-finance.com/ | November 12, 2008, available at: http://www.environmental-finance.com