[Welcome to Weekly Shorts—Sustainability's Cutting Edge, a collection of, well, weekly short reports from Natural Logic. Why? Because there's so much value we want to share with you between our longer and less frequent newsletters. In the next few weeks, we'll give you the ability to better manage your subscription by selecting whether to receive one or both; I hope you'll stay with us at least until then.]

One big idea: There's a rising tide of interest in the intersection of sustainability and money—and specifically accounting and finance. The Sustainability Accounting Standards Board (I serve on its board of advisors), which was formed to develop industry-specific sustainability accounting standards, has gained ANSI accreditation and reported out from its first Industry Working Group—Health Care. Some 29 global financial institutions (though still no US banks) signed on to the Natural Capital Declaration in Rio last year, while a comparable number of global companies pledged to follow Puma's lead in development of 'ecological profit and loss statements and balance sheets.

The management challenge is stark. CFOs are still relatively rare players in the sustainability game, yet their active participation is essential. Sustainability is still seen as a cost by so many people who should know better. And most companies are still flying blind. As my colleague R. Paul Herman of HIP Investor, observes, most executives would acknowledge that people—what we're lately calling 'human capital'—are any company's most valuable asset, but if they're to be found on the balance sheet at all they're listed as a liability. 'How can you manage what you don't measure?' Herman asks, and the same question holds for the many 'externalities'—costs and benefits—that are still absent from the world of finance but are inescapably present in the physical and biological world on which all wealth and well-being depends.

Meanwhile, China has announced plans to institute a carbon tax (and still plans to reduce carbon intensity 40% by 2025). While the impact remains to be seen, it's a bold move in contrast to US avoidance of the issue, and is another data point suggesting a growing shift in global leadership.

Tweet of the week: 'Financial reports tell us a lot about a company's past, but very little about its future.' - Sustainability Accounting Standards Board

Opportunities:

• How robust are your company's sustainability initiatives? And how embedded are they in your business? Take this quick self-assessment and find out.
• What's the 'Biggest Brand Promise' you could possibly make? And what implications that could have for your business?
• Do your employees know what sustainability means for their job? Do they know what they need to know? And do? Would on-demand eLearning help get them engaged and knowledgable?
• Do your leaders, emerging leaders and teams have the coaching and support they need to excel?

Events: This week: the GreenBiz Forum (code gbf13speakerguest for 10% off), where I'll be anchoring a 'green guru' session (about Brand Promise). And join us at the Wednesday evening for the launch party for Noble Profit. (Watch Noble Profit video interview here.) As always, here's my full events calendar—and how to book me for your next event.

For more information on how we might work together to create value and impact: Call me, or use this contact form.

With best regards,

Gil

Gil Philip Friend
President & CEO
510-248-4940
Natural Logic Inc.

Natural Logic helps companies sustainability seriously. And take it deep.

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