Companies in Action
3M integrates sustainability into every future new product. Increasingly, companies are embedding sustainability into investments and business decisions—including product development and R&D. As a result of internal stakeholder engagement, 3M in 2018 launched a new sustainability framework to guide the company’s long-term vision. The strategy focuses on three main pillars to drive impact: science for circular, science for climate and science for community. As part of this broader framework, 3M announced that starting in 2019 every new product launched by the company must have a Sustainability Value Commitment embedded in it demonstrating how it drives impact for the greater good. With an average of 1,000 new products released each year, representing around one-third of the company’s sales, the initiative has the potential to generate a significant ripple effect both within the company and beyond.
Ingredion integrates sustainability criteria into merger and acquisition due diligence process and within accountability mechanisms. Ingredion integrates sustainability into its strategic decision-making processes by assessing climate impacts and water availability as part of its due diligence process for mergers and acquisitions. In its CDP response, the company notes that the evaluation of these risks influenced decisions on whether or not to continue with potential acquisitions—primarily related to the availability of reliable power grid and water availability, both of which are impacted by climate change. The board of directors' Governance and Nominating Committee has direct oversight for sustainability issues, including climate, and receives updates from the management team on progress. Ingredion's Sustainability Council is made up of senior leaders within the organization and is tasked with establishing the sustainability strategy, metrics and action plans for the company's global operations.The company also provides incentives to eligible employees through bonuses that are based on company and employee performance, which are assessed in accordance with strategy and goals, including sustainability commitments.
PepsiCo integrates sustainability criteria into its Capital Expenditure Filter. Proactive companies are taking steps to address sustainability risks and are incorporating sustainability criteria into capital allocation decisions. According to the company’s 2019 CDP response, PepsiCo incorporates environmental sustainability criteria into its Capital Expenditure Filter, which is applied to all capital expenditure requests over $5 million. Each request is reviewed not only against business financial metrics and value in advancing the business strategy, but also the positive or negative impact that it will have on the company’s environmental performance, including energy use, GHG emissions and contribution to PepsiCo’s efforts to achieve its climate goals.