Environmental Impact

Since the beginning of the industrial revolution, 63% of worldwide emissions of industrial CO2 and methane can be traced to only 90 companies. The weight of evidence tells us that corporations play a tremendous role in harming—or protecting—the environment.

Americans saw the planet as a key stakeholder affected by corporations. Do companies work to protect the environment and conserve resources? What role do they play in environmental damage? Below are the Components that Americans defined as important in measuring JUST environmental impact, and how we are measuring corporate performance for each of them. Click on the Components to learn more.


Components

Following are Components that Americans said were important in defining environmental impact, and how we are measuring corporate performance for each of them. Click on the Component metrics to learn more.


Minimizes Pollution

Americans believe that minimizing pollution is an important component of JUSTness. Below are JUST Capital’s metrics for Does the company work to reduce environmental pollution? According to our 2015 Survey, Americans said that environmental accidents (94%) and emissions (87%) were important in measuring JUST environmental impact.

Environmental Impact

Description: Total Direct Environmental Damage Costs relative to turnover.  The Direct Environmental Damage Costs are those incurred when a company emits pollutants or uses natural resources as part of its own activities. The ten most significant impacts are listed below. Carbon Dioxide To Air (Tonnes), River Abstraction (Cubic Meters), Nuclear Waste To Land (Tonnes), Groundwater Abstraction (Cubic Meters), Methane To Air (Tonnes), Sulphur Dioxide To Air (Tonnes), Nitrogen Oxide To Air (Tonnes), Dinitrogen Oxide (Nitrous Oxide) To Air (Tonnes), Barium To Land (Tonnes), Particulates To Air (Tonnes).

Data Source(s): Trucost
Metric Type: Performance
Geography: Global
Unit of Measurement: Ratio

Supply Chain Environmental Impact

Description: Total Supply Chain Environmental Damage Costs relative to turnover.  The Supply Chain Environmental Damage Costs are those incurred when a company emits pollutants or uses natural resources as part of the goods and services it purchases. The ten most significant impacts are listed below. Carbon Dioxide To Air (Tonnes), River Abstraction (Cubic Meters), Nuclear Waste To Land (Tonnes), Groundwater Abstraction (Cubic Meters), Methane To Air (Tonnes), Sulphur Dioxide To Air (Tonnes), Nitrogen Oxide To Air (Tonnes), Dinitrogen Oxide (Nitrous Oxide) To Air (Tonnes), Barium To Land (Tonnes), Particulates To Air (Tonnes).

Data Source(s): Trucost
Metric Type: Performance
Geography: Global
Unit of Measurement: Ratio

Number of Accidents

Description: Number of spills of hazardous materials reported by the company in its latest annual disclosure.

Data Source(s): Bloomberg
Metric Type: Performance
Geography: Global
Unit of Measurement: Number


Has Environmentally Responsible Management

Do company policies and practices work to prevent environmental incidents? According to our 2015 Survey, Americans said that activities such as repairing damage to land (93%) the use of renewable energy (85%) and energy efficient buildings (83%) were important in measuring JUST environmental impact.

Commitment to Environmental Practices

Description: Commitment to environmental practices, comprising assessments of:

  1. the quality and comprehensiveness of a company’s Environmental Management System; and
  2. whether the company’s Environmental Management System has received external certification (i.e. according to the ISO 14001 standard).

The Metric is calculated as an average of data point 1 and data point 2, divided by 10.

Data Source(s): Sustainalytics
Metric Type: Management
Geography: Global
Unit of Measurement: Score (0-10)

Environmental Fines

Description: Fines over the past three years from the Bureau of Safety and Environmental Enforcement, Energy Department Office of Enforcement, Energy Department referral to the Justice Department, Environmental Protection Agency, Environmental Protection Agency civil settlements, Environmental Protection Agency criminal docket, Environmental Protection Agency referral to the Justice Department, Federal Energy Regulatory Commission, National Oceanic and Atmospheric Administration referral to the Justice Department, Pipeline and Hazardous Materials Safety Administration, U.S. Coast Guard referral to the Justice Department and the U.S. Fish and Wildlife Service referral to the Justice Department.

Data Source(s): Good Jobs First Violation Tracker
Metric Type: Fine
Geography: US
Unit of Measurement: US Dollars

Controversies in Environmental Responsibility

Description: Number of severe and very severe cases (major scandals or systematic risk incidents) in influential and highly influential news sources occurring globally over the past three years. Incidents include waste issues; overuse and wasting of resources; other environmental issues; local pollution; impacts on ecosystems/landscapes; and global pollution (including climate change and GHG emissions).

Data Source(s): RepRisk
Metric Type: Controversy
Geography: Global
Unit of Measurement: Number


Uses Resources Efficiently

Does the company conserve resources? According to our 2015 Survey, Americans said that energy efficiency (93%), recycling (93%), and water usage (83%) were important in measuring JUST environmental impact.

Water Use

Description: Volume of water that is directly abstracted and purchased from utility companies in cubic meters / USD million of revenue.

Data Source(s): Trucost
Metric Type: Performance
Geography: Global
Unit of Measurement: Ratio

Fuel Use

Description: Reported fuel usage in Megawatt Hours / USD million of revenue.

Data Source(s): CDP
Metric Type: Performance
Geography: Global
Unit of Measurement: Ratio

Electricity Use

Description: Reported electricity usage in Megawatt Hours / USD million of revenue.

Data Source(s): CDP
Metric Type: Performance
Geography: Global
Unit of Measurement: Ratio

Waste Management

Description: 

  1. Recycled Waste calculated as the total amount of waste the company recycles, in thousands of metric tons. JUST Capital may adjust for one-time items such as demolition waste recycled, or add additional items such as composting, or recycling of other items not always included in primary recycling category such as batteries or electronic waste.
  2. Total Waste calculated as total amount of waste the company discards, both hazardous and non-hazardous, in thousands of metric tons.

Waste Management is calculated as follows: Recycled Waste / Total Waste

Data Source(s): Bloomberg
Metric Type: Performance
Geography: Global
Unit of Measurement: Percent