Five years out from its 2030 deadline to meet ambitious sustainability targets, Bayer has overhauled its Sustainability Council, adding five new outside experts and parting ways with four members.

Created in 2020 and composed entirely of external individuals, the council advises management on climate, agriculture and health. An independent, non-governing body, it does not have formal decision-making power but meets several times a year with Bayer’s top executives to provide input and scrutiny.

The pharmaceutical and agriculture giant said the shake-up will help internal teams work more directly with outside specialists and “engage even more in specific projects” in the final stretch toward its goals.

“Our approach of working with such renowned experts as part of a Sustainability Council is quite unique in the industry,” said Matthias Berninger, Bayer’s executive vice president and head of public affairs, sustainability and safety. “We strongly believe that the diverse backgrounds and expertise from the different Council members provide tremendous value to help us achieve our ambitious sustainability targets, but also to continuously challenge us to see whether there is even more we can do to address climate change and the implications thereof.”

Sustainability is the strategy 

Bayer has tied its business strategy to sustainability. In 2020, it adopted the mission “Health for all, hunger for none,” pledging to support 100 million smallholder farmers, 100 million women in low- and middle-income countries with modern contraception and 100 million people in underserved communities through self-care by 2030.

It also committed to reduce its own greenhouse‑gas emissions (Scopes 1 and 2) by 42 percent by 2030, to cut its value‑chain emissions (Scope 3) by 25 percent by 2029 and to enable farmers to reduce the greenhouse‑gas footprint of crop production by 30 percent, also by 2030.

Who’s at the table — and why

The revamped line-up brings experience from sustainable agriculture, public health, circular economics and corporate stewardship. The new faces include:

  • Facundo Etchebehere, co-founder of NGO Ambition Loop and former head of Danone’s sustainability strategy
  • Lisa Lange, an expert in circular economics and stewardship at Federated Hermes Limited
  • Philipp Roesler, a physician and a former German vice-chancellor
  • H.E. Toyin Saraki, founder of the Wellbeing Foundation Africa and advocate for maternal health
  • Cori Wittman Stitt, a fifth-generation farmer and regenerative agriculture specialist

Although they’re uncommon in the pharmaceutical industry, similar expert advisory bodies have been adopted in other sectors. For example, Nestlé convenes a Creating Shared Value Council and Unilever has a Sustainability Advisory Council. Bayer positions its council as distinct because of its integration into its core business strategy.

Etchebehere sees his role as helping Bayer “contact allies, see opportunities and accelerate important transitions, all with the goal of feeding the world within the limits of the planet,” he said in an interview. 

For Wittman Stitt, the link between regenerative farming and corporate sustainability is personal. “On our farm, everything we do is evaluated through the lens of environmental sustainability — through the regeneration of soils and natural resources while producing increasingly healthy, nutrient‑dense food,” she said. “And I see parallels in the conversations and lenses being used at Bayer.”

That perspective is important because agriculture accounts for around a third of global greenhouse‑gas emissions, and Bayer is a major supplier of seeds and crop‑protection products. 

‘Genuine conversation’

To meet its target of cutting the greenhouse‑gas footprint of crop production for its customers by 30 percent, the company will need to work closely with farmers.  

Outside advisors can be a box-checking exercise for companies, Wittman Stitt acknowledged. “But that doesn’t seem to be the case at Bayer. There is genuine conversation, genuine curiosity, genuine requests for that honest, critical, constructive feedback. Not just to be a ‘yes’ council but to really pressure-test targets and ask if these things we’re doing pass the litmus test of these broader targets.”

“I’m confident it’s taken seriously,” said Roesler, who is also a former managing director at the World Economic Forum. “We had more than an hour talk with the CEO, and you could really see it’s not an add‑on like a charity or foundation. It’s a part of the business strategy at Bayer.”

The will may be there, but turning it into timely action is another challenge. “I’m worried that changes due to climate change in agriculture are happening way faster than technological solutions,” Roesler said. “We have to speed up all the processes and have a short line between those who are on the ground facing challenges and urgently need help and those who are trying to provide help.”

Contradictory signals

Meeting the 2030 targets will be daunting. The company must cut emissions across thousands of suppliers, invest $628.65 million in energy efficiency at its own plants, roll out digital tools and regenerative practices to farmers and expand access to contraception and self‑care in low- and middle-income countries.

The Science Based Targets initiative recently validated Bayer’s climate pathway, which aligns with keeping global warming well below 2 degrees Celsius. Bayer has also received an “A” rating from Carbon Disclosure Project for its climate and water management commitments. 

But the company’s carbon footprint remains vast: annual Scope 1 and 2 emissions were nearly 3 million metric tons at the last count, with Scope 3 just under 8 million. More than 70 percent of Scope 3 comes from purchased goods and services, and changing supplier behavior is notoriously difficult.

The company has launched a “Scope 3 Accelerator Program” to engage suppliers on renewable energy and efficiency, but the effects remain to be seen.

On the agricultural side, enabling farmers to cut emissions by 30 percent will require scaling regenerative practices, digital tools and climate-resilient crops. Yet these initiatives have drawn criticism. In 2023, for example, Spanish farmers accused Bayer of “a textbook example of greenwashing” after it promoted the weedkiller glyphosate under the banner of regenerative agriculture, Sustainable Views reported.

This April, Bayer reaffirmed its climate commitments but blocked shareholders from voting on its Climate Transition and Transformation Plan, citing “concerns around timing” amid an international ESG backlash, according to Responsible Investor. Bayer’s largest bloc of investors — representing 32 percent of stock — is in North America.

Coffee, not chocolate

Regardless whether Bayer hits every target, its Sustainability Council offers one model for embedding sustainability into corporate governance: independent yet integrated, drawing on expertise in areas from regenerative farming to global finance, and with direct access to the leaders in the company. 

“You can only have impact if sustainability is part of your business model, not just a nice to have when you have enough profit,” Roesler said. “It’s the coffee, not the chocolate topping. Every company should integrate sustainability into its core business.”

“The long‑term success of a company is only possible with a clear sustainability strategy,” Etchebehere said. “As a member of the Sustainability Council, I will work to integrate a proper conversation into the business, which means empowering the solutions but acknowledging what is wrong and what needs to change.”

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The International Organization for Standardization (ISO) and Greenhouse Gas (GHG) Protocol plan to “harmonize” their frameworks for emissions accounting and reporting, a move greeted with enthusiasm by professionals responsible for voluntary corporate disclosure.

The strategic partnership disclosed Sept. 9 by the two well-known international standards organizations seeks to unify the approaches used in ISO’s 1406X series of standards for managing greenhouse gas emissions inventories and product carbon footprints with GHG Protocol’s rules for how companies prepare statements for annual ESG and environmental reports. 

GHG Protocol’s guidelines are used by 97 percent of all companies that report. ISO, which represents 170 international standards bodies, has more than 25,000 standards, including around 600 processes related to energy, materials reuse and areas core to corporate climate action. 

The net effect of the new relationship will be to standardize how certain categories are defined across the frameworks for easier comparison. The partnership doesn’t apply to existing standards. New guidelines will eventually replace them.

“Investors need consistent, reliable data to deploy capital effectively in the transition to a low-carbon economy,” said Clara Barby, senior partner at investment firm Just Climate. “Together, ISO and GHG Protocol can provide coherent protocols as the basis for disclosure regions globally, offering the credibility and simplicity the market needs.” 

Deeper relationship

The two organizations have already been collaborating. ISO’s forthcoming net-zero standard, anticipated in late 2025, uses GHG Protocol’s definitions for its reference materials about how to consider emissions for Scope 1 (operational), Scope 2 (energy-related) and Scope 3 (upstream and downstream impacts). ISO and GHG Protocol are also aligning how they consider claims about carbon neutrality. 

Existing technical work at each organization will continue — both ISO and GHG Protocol are preparing big standards overhauls in 2025 — but governance teams are being asked to consider the harmonization process during that work, according to an ISO spokesperson.

No timeline was given for the work, but sustainability consultant Andrew Griffiths, who is involved with the ISO net-zero standard working group as co-founder of the Carbon Accounting Alliance, suggested it would take at least 18-24 months for the organizations to publish combined standards. 

There will be a lot of difficult negotiations ahead, said Griffiths in a LinkedIn update about the partnership that was reposted more than 120 times by sustainability professionals, most of whom were enthusiastic. 

The ISO-GHG Protocol partnership will be “transformative, bringing greater cost savings, efficiencies and interoperability to a market crying out for just this,” he said. “It is fundamentally a good idea, and it’d be a dereliction of duty if we didn’t seriously try to make this happen in the best possible way.”

The two organizations will remain fully independent in their governance and decision-making processes, the ISO spokesperson said. 

The agreement doesn’t explicitly include the Science Based Targets initiative, which has been consulting with both ISO and GHG Protocol on the overhaul of its corporate net-zero standard.  

The post What you should know about the partnership that’s unifying carbon accounting standards appeared first on Trellis.

Tennis legend Venus Williams turned heads at this year’s U.S. Open, carrying a high-fluff shearling tennis racket case by small Venice Beach brand ERL. She flashed more sheep-forward fashion while playing with John McEnroe in a black Merino wool dress by Brooklyn designer Luar.

For more than 10,000 years, wool was an OG outdoor fiber. Like Merino sheep, people benefit from wool’s temperature-regulating properties in extreme cold and heat. Athletes like its moisture-deflecting, odor-resistant properties.

In a few short decades, though, stretchy synthetic blends became the materials to beat in sports. Pro leagues play in highly engineered polyester, nylon, spandex and elastane. Lightweight, fast-drying and highly specialized blends endure friction, torque and frequent washings. Adidas, Nike, Puma and Under Armour are continuing their commitments to synthetics for uniforms, but also investing in recycling systems and startups to slim the virgin petro-fibers from their climate footprints.

And with those synthetics making up two-thirds of all fashions, many younger adults have little experience with wool, thinking of the itch factor of rougher fibers rather than pliable, cushiony Merino.

A ‘breakout’ for wool?

But now, sustainability experts see the pendulum swinging back.

“Anything that one of the Williams sisters is promoting could be a breakout moment in tennis products,” said Cynthia Power, a former Eileen Fisher director who co-hosts the Untangling Circularity podcast.

Wool makes up just less than 1 percent of the global fiber mix, according to the International Wool Textile Organization (IWTO). That was about a million metric tons’ worth in 2023, based on a count by the Textile Exchange.

However, the demand for natural textiles will nudge the annual wool market from $43.9 billion in 2025 to $52.6 billion by 2030, with annual growth just under 4 percent, according to Mordor Intelligence.

And while brand giants are not yet championing wool, numerous small companies are using the material, casting it as free of the chemical and carbon burdens of oil-based fibers. The list of these makers includes Mons Royale, Ibex, Devold, Woolx, Woolly, Wool&, Ryker, Röjk Superwear, Ridge Merino and Duckworth.

“We’re excited to see Merino on a global stage,” said VF Corporation’s Alicia Chin, director of sustainability and social impact for emerging brands. VF, the parent of The North Face and Vans, snapped up wool labels Icebreaker in 2018 and Smartwool in 2011. Chin predicted that wool will reach the mainstream as companies further enhance its quick-dry time, moisture-wicking and cooling properties.

Smartwool, launched by ski instructors in 1994, helped to popularize fine Merino. The label’s formula blends in recycled polyester and Tencel fiber. VF does not break out sales of sub-brands or fibers, but Smartwool took in $31 million in 2024, according to ECDB analytics.

Since 1965, Woolmark of Australia has represented wool producers. To elevate the fiber, it has collaborated with a wide spectrum of designers. Among the examples of wool in high-sweat settings:

“Wool truly is an ideal fiber” for sports and recreation, said Nica Rabinowitz, who manages brand engagement and supply chain efforts at the nonprofit Fibershed. “A lot of these synthetic fibers are trying to recreate what wool does, but are not able to do it as well and likely never will.”

Wool’s edge

Merino base layers outperformed synthetics for regulating body temperatures in hiking, cycling and golf, according to a study by North Carolina State University (which was funded by Woolmark).

Norwegian brand Devold's $818 Trollkyrkja jacket uses Merino-based Optim fabric.
Norwegian brand Devold’s $818 Trollkyrkja jacket uses Merino-based Optim fabric. Credit: Devold
Source: Devold

“Wool already has a meaningful share in base layers and multi-sport, next-to-skin applications,” said John Roberts, the managing director of Woolmark in London. He foresees wool helping brands to phase out PFAS forever chemicals and combat microplastics.

Engineering wool to create outerwear without toxic water-proof coatings also aligns with regulatory pressure, Roberts added. Anti-PFAS laws are already on the books in New York and California, and spreading throughout Europe. As evidence builds about the health harms and prevalence of microfiber pollution, plastic textiles pose future risks to brands and retailers.

The sustainability question

Australia, China and New Zealand are wool production hotspots, and industrial transparency is scant. However, sustainability-driven brands emphasize their vetting of smallholder suppliers. Smartwool, for one, sources 85 percent from ZQRX-approved “regenerative” farms in New Zealand. Wool meeting the Responsible Wool Standard (RWS) for animal and land welfare practices, grew in market share slightly in 2023, to 4.8 percent over 4.2 percent a year earlier.

The sustainability picture for wool is complicated. Not least, sheep require ample land for grazing and emit a lot of methane.

Wool boosters complain, however, that lifecycle analyses unfairly depict polyester and its ilk as less impactful. They point out orange-to-apples equations of the emissions of petrochemical fiber production against those from wool, which remain within the natural carbon cycle.

“One challenge is that natural fibers are often assessed on the wrong terms using models that don’t account for their ability to regenerate land or to biodegrade,” said Roberts of Woolmark. “Regenerative grazing sheep, for example, can improve biodiversity, store carbon and build soil health, so the farm itself becomes part of the circular system.”

The recycling rate for wool is only 6 percent, but that’s much higher than for other fibers. Only 1 percent of fabrics overall were recycled from waste textiles. And although 12.5 percent of polyester comes from recycled sources, most derives from things like plastic bottles or fishing nets rather than fashion waste.

Recycling 100 percent wool often results more in stuffing than sweaters. (The word “shoddy” originally described rags recycled from wool 200 years ago.) Blended fibers are generally impossible to recycle to their original integrity, and wool blends are no exception.

However, when wool waste naturally biodegrades, it can fix nitrogen and feed the soil, according to Rabinowitz of Fibershed. “Because it is so great for soil health it is a wonderful renewable resource.”

Ryker’s web ad for its Merino weight-lifting shorts plays to fears about microplastics and “forever chemicals.” Credit: Ryker
Source: Devold

Can wool scale in athletic wear?

There’s a bottom-line reason why polyester fleece, which Patagonia brought to market in 1979, has eclipsed the sheep-based original.

“Synthetics for the most part can be 20 percent less expensive,” said Tsui Pappas of the consultancy Pappas Creative in New York. “There is pressure from the C-suite at every brand to have higher margins.”

But apparel businesses can and should adjust cost or margins to prioritize natural fibers, according to Pappas, the former director of sustainability at Alice + Olivia. She points to the food industry: Consumer messaging about the value of organic produce eventually led to its mass adoption, and prices dropped when demand scaled.

And with enough development and support, biobased synthetics could address plastic shedding and lack of compostability in fabric blends. Advanced knitting technologies for wool, as well as blends with algae and other next-gen fibers, may also elevate sustainability and performance.

“We will continue our commitment to wool because we see its strengths: tech, versatility and legacy,” said Raul Lopez, founder of the Luar label, in a statement. “It’s why Venus chose wool for her U.S. Open kit.”

The post Why Venus Williams wore wool at the U.S. Open appeared first on Trellis.

Everlane launched 14 years ago as an ethical apparel brand extolling “radical transparency,” a term that it trademarked. This year, the company has shifted to a “clean luxury” message to elevate its image and focus on sustainability.

Advancing lower-impact, certified and mostly natural materials supports the company’s net zero goal for 2050 and hedges against future regulatory risks. The strategy also seeks to rebuild trust lost five years ago, after workers blasted Everlane for greenwashing and poor labor and social practices.

Steering Everlane forward is Alfred Chang, a former Fear of God and PacSun chief executive. Last October, he became Everlane’s third CEO since co-founder Michael Preysman stepped away in 2021.

Katina Boutis, the senior director of sustainability and sourcing who joined Everlane early in 2021, described the label as “moving from transparency of pricing to transparency of supply chain to a very robust and holistic view of sustainability across social and environmental impacts.”

For instance, the company is closing in on a goal of 100 percent “preferred” materials that eliminate virgin plastics by the end of this year, according to Boutis, previously the sustainability director at luggage maker Away. Ninety percent of Everlane’s materials in 2024 met such “lower-impact” standards, such as being organic, recycled or responsibly sourced. 

“We’ve proven over the years that we can build a strategy that is meaningful and also attain very lofty goals,” Boutis told Trellis.

Shifting recognition

“Everlane now stands out less for its marketing claims and more for the tangible steps it’s taking on materials, emissions and accountability,” said fashion industry veteran and consultant Liz Alessi.

The company recently topped a list of 52 brands in the 2024 Fashion Accountability Report by Remake, a San Francisco advocacy group.

External estimates, which the privately held Everlane declined to verify, peg its 2024 sales around $200 million or more, with 420 employees across six continents. Although not a brand leader by size, Everlane’s transparent and ethical selling points have invited scrutiny since its founding. 

It holds a longtime narrative of eliminating middlemen to sell finely crafted, timeless fashions directly to consumers at a markdown. Its graphic of the “true costs” of a garment went viral.

Tracing the trouble

Despite this focus, Everlane was from its earliest days subject to watchdog complaints that it was short on sustainability details. And those complaints paled next to a March 2020 tweet by Sen. Bernie Sanders, who shamed the company after it had laid off hundreds of retail and customer support roles following attempts to unionize. 

That summer, former employees (self-described as the “Everlane Ex-Wives Club”) penned a public letter complaining of the company’s systemic racism and “convenient transparency.” 

Following an apology and investigation, Everlane changed leadership and began publishing annual impact reports.

Still, the company’s social responsibility disclosures fall short of being “radical,” according to Luke Smitham, a senior manager at Kumi Consulting in London.

“Currently they are very much within the pack but their communication tends to be more detailed and in some places refreshingly honest,” he said. For instance, the company explains why achieving living wages within its supply chain is very challenging, according to Smitham.

Material matters

Although the company declined to comment on past controversies, it is eager to discuss its progress on sourcing and manufacturing. Both are pivotal to hitting its net zero target, validated by the Science-Based Targets initiative. Sixty percent of the business’s climate footprint originates from materials, and 99 percent from Scope 3 sources.

Boutis described leading sustainability and sourcing across “a very tightly wound, cross-functional team.” She reports to a senior vice president who reports to Chang and the board.

“While many brands dabble in sustainable fabrics, Everlane has created a clear roadmap toward 100 percent preferred materials and tied it directly to science-based climate targets,” consultant Alessi said. “They’ve already achieved 90 percent of their materials meeting those standards and they’re one of the few brands close to fully sourcing sustainably. The choices they make in closing that final gap will define what true material leadership looks like in the industry.”

Everlane’s preferred materials ramp-up

Credit: Everlane 2024 Impact Report

Last year, the company counted an emissions drop of 52 percent per product unit against a baseline year of 2019 — close to the 2030 aim of 55 percent. So far, 95 percent of its cotton is either organic, regenerative, recycled or traceable back to the farm. Everlane invests in climate- and soil-friendly farming projects. In addition, all of Everlane’s virgin leather, manmade cellulosic fibers and down meet third-party standards. 

The company has switched 45 core materials to recycled versions, although 4 percent of its polyester and nylon still included virgin sources in 2024. Everlane originally sought to eliminate virgin plastics by 2021 for products and packaging, too. It succeeded with packaging, but moved the product goal to 2025.

“We see this less as pushing out a deadline and more as doubling down on a systems-level challenge,” Boutis said. After realizing that the hard-to-recycle items like zipper pulls, buttons and stretchy fabrics were an industry-wide problem, Everlane sought to support related startups.

In addition, 91 percent of the label’s goods were made under third party-certified chemicals standards, such as Oeko-Tex. And 78 percent of its Tier 2 mills, including for dyeing and finishing, had cleaner chemistry certifications.

“Once we achieve one goal or one milestone, we have to set our sights further,” Boutis said. “Sometimes, what we’ve noticed is that the solutions don’t even exist today.” That applies, for example, to Everlane’s participation with the Apparel Impact Institute in its efforts to help suppliers adopt low-emissions practices.

And although bottle-to-textile recycling may be the best “circular” solution so far, textile-to-textile recycling could be better. To that end, Everlane is partnering with Fiber Club, a multi-brand project by the startup Circ, to feature Circ’s recycled lyocell in a small 2026 collection.

Reducing plastic risks

The natural fiber-forward approach is also about risk reduction. Everlane actively supports policies, including the nation’s first extended producer responsibility law, which in California this year began requiring fashion brands to account for their sold merchandise. 

The company developed its first synthetics at the same time it devised materials targets in 2018. That shed light on the lifecycle impacts of polymer fibers, which Everlane limits to items like jackets with low rates of shedding. (Everlane lobbied for a California bill that would have required filters on washing machines.)

“It’s not just the public that is starting to really understand and grapple with the subject,” Boutis said of concerns about plastic pollution from fashion. “The industry and lawmakers in particular are on that same pathway.”

“We’ve been able to demonstrate that we’re making real, meaningful progress, whether it’s our climate commitments or material commitments,” Boutis said. “We are actually succeeding, both on the business end and the sustainability end, which I think many times are positioned as in opposition to one another.”

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The Science Based Targets initiative (SBTi) has been urged not to exclude nature-based solutions from its net-zero standard. The plea comes from more than 40 experts who fear the organization will overly favor engineered solutions, such as direct air capture.

At the heart of the group’s argument, made in an open letter published last week, is opposition to the idea that because fossil carbon emissions originate from long-term geological stores, they should only be counterbalanced by removals that can be sequestered for a thousand or more years. The SBTi’s Corporate Net Zero Standard is undergoing revisions and the current draft suggests using this “like-for-like” principle to help determine which carbon credits companies can use.

“It’s just a fundamentally flawed concept,” said Joe Fargione, North America science director for The Nature Conservancy, who signed the letter along with 12 colleagues from the organization. 

‘False binary’

The signatories’ objections to like-for-like include the “false binary” that defines permanent storage as “either 1,000 years or failure.” They argue instead for a focus on “durability,” which encompasses how long the carbon is likely to remain stored and the mechanisms used to deal with potential reversals. 

In this view, credits from storage mechanisms with relatively high risk of reversal — such as forests, which can release carbon back to the atmosphere in the event of fire — can be used in net-zero frameworks provided adequate insurance mechanisms are in place. These include holding back some credits from sale so that they can be used to compensate for potential future losses.

The letter also warns of the opportunity cost of excluding nature-based solutions. That’s partly an issue of scale: The authors peg the removals potential of these solutions as 11 gigatons of carbon dioxide a year over the next decade, around a fifth of current annual total global emissions. In addition, investing in nature helps safeguard existing forests, which, if lost, could release enormous amounts of carbon.

All about the claim

One expert often seen as an advocate of like-for-like is Robert Höglund, head of climate strategy and carbon dioxide removal at Milkywire, a Swedish company that helps businesses meet climate and nature commitments. He told Trellis that he agrees with many of the arguments in the letter. “There’s a big miscommunication around when permanent carbon removal is supposed to be used,” he said.

Höglund argued for a focus on how the credits associated with climate solutions are used. In an emissions trading scheme, for instance, companies can purchase credits instead of reducing emissions. The SBTi also allows companies to use credits to offset hard-to-abate emissions that remain at the end of a journey to net zero. In these situations, said Höglund, permanent removal is required because the credits are a substitute for emissions reductions.

Many other companies, however, want to use credits to compliment ongoing reduction efforts. In this case, credits purchases are akin to a tax that companies pay because of their ongoing emissions. “If it’s just a tax you pay on your way to zero? Then I don’t see it has to be permanent,” said Höglund “Then you should look at just what’s most cost-effective.”

Consultation on the current draft of the SBTi’s net-zero standard closed last month. The organization will next pilot the standard with a small number of companies, with a view to finalizing the document next year.

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The opinions expressed here by Trellis expert contributors are their own, not those of Trellis.​

Throughout the past few months, we’ve discussed how to set sustainability strategy through an approach we call Sustainability Tension Management, which allows practitioners to adapt and operate fluidly in both the profit and loss culture of business and the policy and impact world of sustainability. But it’s always helpful to see what this strategy looks like in practice and we’ve gotten that opportunity by observing the UPS sustainability team led by chief sustainability officer Scott Childress.

Childress brings a unique profile to the CSO role. An economist by training, he spent most of his UPS career in the finance and accounting department, rising to serve as the CFO for specific business lines. Someone with Scott’s background represents a prime example of a business insider leading the function. Our research has found business insiders often lean towards making modest, incremental moves, while sustainability experts from outside of business frequently push for more ambitious impact.

While it may sound as if insiders’ lower ambition might make them less impactful, their ability to leverage business acumen, internal relationships and navigate corporate bureaucracy provides them with a set of Akido-like capabilities, where force is not met with force but by redirection.

These skills can drive tangible impact for people and profit, as we’ve seen with Childress and his team. Below are five lessons we’ve learned from UPS’ sustainability transformation.

Lesson 1: Use data to drive change

Disclosure and reporting processes, while essential, can make incredibly rich, varied and strategic emissions and energy data start to look and feel static and siloed. Our research finds the most successful sustainability leaders prioritize creating systems and processes that go beyond disclosures and foster the use of data to drive insight and impact for people, planet and profit. To advance this, the UPS Sustainability team moved away from ad hoc data management via Excel and centralized the data collection process, working with tech partners and the IT department to create a solution that fit UPS’s approach to information management.

Childress and his team intuitively understood that sustainability needs to align with the organizational culture and entrepreneurial style of UPS. At its heart, UPS manages logistics with an engineering firm’s approach: laser-focused on data-driven efficiency. “We view validated, high-confidence data as a huge enabler,” he said. That’s because robust data and analytics encourage decision makers to devote resources to improve energy performance and keep the company on track towards its 2050 carbon neutrality commitment.  

Lesson 2: Get data in the hands of the right decision makers

Too much sustainability data often remains visible only to a company’s sustainability team. Childress and his team saw that data collection was set up to respond to the requirements of specific government reporting standards. However, it was missing the opportunity to better inform internal operational decision makers.

The UPS team set up their group to serve as the central hub for all sustainability data, which they then translated into actionable, user-friendly, consistently updated formats for teams across the business. To affect decisions and behaviors of decision makers, the data needed to be “bilingual” and speak the language of the business in addition to the language of sustainability reporting standards, rating systems and regulatory requirements. The sustainability team made sure to connect with key internal stakeholders to understand what questions they wanted to answer, how frequently they wanted updates and what kind of analytic functionality would best support them.

Lesson 3: Help decision makers balance tensions and resolve tradeoffs

Childress’ own experience as CFO helped the sustainability team recognize that UPS decision makers wanted a data management system that would allow them to track emissions tied to financial and accounting modeling. While many GHG tracking tools support reporting and disclosure, this functionality was not readily available. “Instead of going to others to look at ROI on invested capital we used our own company models to build a cash flow model to determine how an option for reducing emissions would affect budget expenditures and financial outcomes such as reduced costs,” Childress recalled.

Doing so helped company leaders translate GHG data to familiar financial analytics. They could now understand GHG and energy from the lens of efficiency and treat GHG as a waste stream that needed management optimization. Now anyone who might not have ever heard of Science Based Targets could accelerate their evaluations and scenario analysis and make decisions regarding capital allocation that would drive financial and low carbon outcomes.

Lesson 4: Drive impact and business benefits

The outcome of the sustainability team’s work is an interactive data management tool that allows business leaders to get granular carbon and energy data by emission source. It enables leaders to craft scenarios that show the impact of changes on emissions and related costs and/or savings.

For example, the company’s European operations can monitor monthly consumption of ground fuels, natural gas, diesel and bio-based and renewable fuels in its vehicle fleets. The database taps into purchasing invoices to get location specific data on the amount of fuels purchased and consumed and then calculate GHG emissions. The data even shows miles driven and related emissions by location. The sustainability team can track every flight and the amount of fuel burned by route. Auditing teams constantly make sure the numbers are validated. In addition, the database helps UPS respond to customer request support in reducing GHG emissions tied to their supply chain and logistics.

Lesson 5: Shift the focus of accountability from inputs to impacts

The data management system, “gives us tremendous flexibility,” Childress said. “We can now implement initiatives and measure monthly to see how seasonality affects us, and to see if initiatives are effective. It was super important to start with the data and then the ecosystem possibilities came to life.”

The database has become an invaluable tool for leaders across the business to pull their weight in reducing emissions. Rather than reviewing data and brainstorming ways to reduce emissions on an annual basis, decision makers can review and trial actions on a monthly basis. In addition, decision makers can develop the knowledge and skillset to connect better GHG and energy management to enhanced business and financial results.

The data also helps decision-makers make more informed calculations regarding fuel choices as they compare fossil fuels with renewables, biofuels, hydrogen, electric and other options.

For example, if UPS shaves a minute off a process, the savings across a global company of around 490,000 employees is substantial. The GHG and energy database catalyzes innovative ideas that improve efficiency.

Sweet spot alignment

The UPS example shows the potential of adapting business thinking to sustainability and sustainability thinking to business. Sustainability practices can get caught up in an over-emphasis on tracking inputs. But the UPS story reminds us of how important it is to make the subtle but profound shift to set up systems and incentives that establish accountability for delivering positive results for people, planet and profit.

 

The post How to find sustainability sweet spots: 5 lessons from UPS appeared first on Trellis.

Chief Sustainability Officer Jaycee Pribulsky has chosen to leave Nike, ending nearly nine years of leadership there, which included directing external engagement and leading global manufacturing and sourcing.

She is departing the Beaverton, Oregon, brand to return east for an undisclosed new role. Via LinkedIn on Sept. 9, Pribulsky announced the “bittersweet decision to leave the company for an incredible opportunity back in New York.” Her post attracted more than 90 positive comments from acquaintances and former colleagues across her career spanning high-profile public and private institutions, including the White House under President Bill Clinton.

“It has been an amazing run working with awesome teammates,” she wrote. “And I just want to say thank you. Nike is about the people and the teams. And there are too many to list here. I’ll be cheering you on!”

Without a successor named, it’s unclear who will continue to lead perhaps the giant apparel brand’s “move to zero” effort to center carbon, waste, water and circularity toward net zero. That strategy replaced the original “moonshot” focus set by former CSO Hannah Jones in 2017.

Her Nike roles

Pribulsky brought deep supply chain leadership experience when she assumed Nike’s top sustainability job in February 2024. That was three months after an epic sustainability shakeup at the end of 2023, when Nike shed nearly one-third of its sustainability staff.

The CSO slot had been vacated by Noel Kinder after some five and a half years. (In May, he joined Lululemon as senior vice president of sustainability.)

Nike has experienced a high amount of turnover of late. In October 2024, the company hired Elliott Hill to replace CEO John Donahoe. Chief Innovation Officer John Hoke retired after three decades this past spring, around the same time that Noah Murphy-Reinhertz became senior director of sustainable product design. Several months ago, Alice Hartley became Nike’s new circularity director.

When she came to the CSO desk, Pribulsky had been vice president of global footwear sourcing and manufacturing for more than three years.

As vice president of sustainable manufacturing and sourcing before that, she was responsible for carrying forward more than two decades of work to prevent the sweatshop conditions that had been exposed by activists and addressed by co-founder Phil Knight in the 1990s. From 2018 to 2020, Pribulsky was responsible for environmental, social and governance efforts in 500 contract factories employing almost 1 million workers in 40 nations.

Before Nike

Pribulsky’s career after graduating from American University began in public service, with three years at the now-shuttered U.S. Agency for International Development. She then joined the Clinton White House for three years, first as a scheduler for First Lady Hillary Clinton and later as a special assistant to the president.

After completing an MBA at Columbia University, Pribulsky worked at nonprofit Seedco before moving through corporate community affairs and relations roles in the early aughts. At United Technologies, she created its first corporate responsibility reporting strategy. At Citigroup, she focused on community relations in emerging markets. As vice president of global citizenship leading corporate social responsibility at Waggener Edstrom, her clients included Microsoft and Chevron.

Pribulsky then stayed for six years at the consulting firm Context Group, becoming managing director and head of its America practice. The firm assisted numerous corporate giants including Cisco, International Paper and PepsiCo.

Before departing New York to join Nike in 2017, Pribulsky briefly led communications and outreach at the Task Force on Climate-related Financial Disclosures.

“Look for the spaces where there’s work to be done, but no one’s raising their hand,” Pribulsky told her alma mater, Columbia Business School, this spring. “Maybe it’s not their job or they don’t want to do it, but if done it can make an impact.”

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It’s getting harder to build or maintain trust with diverse groups these days, so it’s no wonder people are turning to innovative methods to try to boost engagement.

But recent research conducted by GlobeScan and the Corporate Affairs Academy at the University of Oxford, finds that stakeholder engagement ranks among the top five priorities for corporate affairs professionals. At the same time, other GlobeScan research shows that many sustainability experts don’t see stakeholder management as a highly effective lever for advancing sustainability. This disconnect highlights a critical challenge: how can engagement be redefined to deliver trust and meaningful sustainability outcomes?

Corporate affairs practitioners surveyed say the most innovative ways to build trust with diverse groups is to return to the fundamentals, especially with stakeholders who are skeptical and critical: direct, in-person engagement and open dialogue, followed by clear communication and transparency. While digital tools and AI are part of the mix, they’re viewed as less powerful than authentic, human-centered approaches.

What this means

In a world of eroding trust and rising stakeholder expectations, organizations must focus on the quality of stakeholder engagement. By combining the relationship-building expertise of corporate affairs with the leadership of sustainability teams, companies can elevate engagement to drive credibility and impact. This means investing time in face-to-face dialogue to co-create solutions with stakeholders directly and, when possible, in person to ensure engagement not only builds and maintains trust but also contributes to tangible sustainability progress.

Based on a survey of 245 corporate affairs practitioners, February-March 2025.

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The opinions expressed here by Trellis expert contributors are their own, not those of Trellis.​

Despite their talent, a brand wouldn’t charge a sustainability team with launching a new business or product line — so why would it charge a team with implementing a resale program? 

Unfortunately, there’s a common misperception that sustainability teams should lead resale programs because it’s a sustainability initiative, and that the existence of a resale program makes the brand more sustainable, so additional resourcing is not required. 

This results in many resale programs stagnating after launch. Instead, leaders need to allocate resources and support to financially scale successful resale programs to achieve sustainability benefits and align the program’s trajectory with being a driver of new business, customer loyalty, customer acquisition and supply chain resilience. This requires the skills and expertise of teams who are accountable for brand growth and profitability. These teams need to work in conjunction with sustainability teams who can help develop the program guardrails to avoid problematic greenwashing. 

Integrating resale into business and innovation 

Integrating resale into a brand’s core business and brand is paramount to accelerating program growth. Executive approval to enlist a cross-functional team usually is the start, and given competition for increasingly limited resources, it’s critical that brand leadership understands the potential opportunities and value resale can provide:

  • Supply chain resilience: Create an alternative revenue stream that is less impacted by natural disasters and tariffs.
  • Market share: Compete for more price-sensitive customers without sacrificing quality, by simply selling the same items again at a lower price. 
  • Consumer engagement: Interact with existing customers and attract new customers to a brand. 
  • Merchandising: Create the ultimate sale with great prices and exciting treasure-hunting opportunities. 

Additionally, the role of resale as an innovation driver is often overlooked. Jen Yue, SVP of Tapestry & Coach Strategy, illustrates this with Coach’s experience with its circularity programming. “Coach (Re)Loved was the spark that ignited Coachtopia,” a distinct sub-brand designed to operate independently from Coach to “rapidly prototype new products, processes and ideas.” Launched in 2023, Coachtopia doubled its business and reached profitability within a year, ranking as the sixth most-innovative apparel company by Fast Company this year.

Ready, set, go … where?

Once a cross-functional team has been established to lead resale, specific targets, especially revenue and sales, are needed to hold teams accountable. These metrics are nearly impossible to benchmark across peer and competitor resale programs because brands don’t disclose this information. 

This results in most brands hesitating to set financial goals for resale programs because they have no idea what a competitive or reasonable goal would be. H&M recently set a precedent by announcing in its 2024 sustainability report, that sales of secondhand goods had doubled in 2024 to 0.6 percent of total sales, from 0.3 percent in 2022. H&M should be applauded for this transparency. More disclosure of resale revenue goals and progress would help brands gauge their own progress and ideally spark beneficial competition.

But without comparable benchmarks to draw from, brands can use the following approaches to developing resale revenue goals: 

  • Product and category track records: By evaluating the path to profitability of new product and category launches, brands can set realistic financial growth goals and timelines for resale programs. 
  • Industry benchmarks: Use industry-specific reports such as ThredUp’s annual report for secondhand apparel to understand growth rates over time to build a program forecast.
  • Impact forecasting: Use secondhand product footprints and the resale program’s displacement rate to forecast the environmental savings of a resale program under different growth scenarios, helping to inform program financial goals. 

Building a P&L that generates insights

Although a profit-and-loss statement is the most direct way to track the progress of a resale program, there can be unforeseen challenges. In the early years, the lines are often blurry about what should be considered a true cost of the program and it can be unclear and difficult to assign operating costs and expenses. For example, the resale program may not yet have a dedicated team, and instead many people are contributing a portion of their time to getting the program off the ground; or it might use existing systems and warehouse space in a piggy-back approach. 

In general, at the beginning of a resale program, take a simple “apples to apples” accounting approach with clear-cut expenses and sales attributed to it — keeping in mind that the value of the P&L is that it generates insights and learnings about where a program is failing and succeeding so that teams can iterate and adjust.

A challenge specific to resale P&Ls is how to account for the incremental spend of gift cards issued to sellers in the trade-in/buy-back process. The value issued on the gift card is the cost of product acquisition and will be accounted for in the cost of goods sold. When a seller uses the gift card, they may spend beyond the value of the card. 

Adding this revenue to the resale P&L will definitely make the program look financially stronger and more attractive; however, this can be greenwashing the P&L. This is because these gift cards usually can only be used to purchase new items, which perpetuates the linear business model because revenue is being derived from the sale of new items, despite the gift card originating in a circular business model. If the gift card can be used to buy secondhand items, then those transactions can be captured in the resale program sales. 

Expanding the understanding resale value

Along with traditional accounting tools, teams can set up KPIs that measure the additional business values of the program. For example, brands that measure the percentage of resale transactions coming from new customers report this number in the range of 10 to 25 percent. With this data, a business team can compare the cost of acquiring customers through its resale program versus other approaches to customer acquisition. Gaining these insights help build a holistic understanding of the challenges and opportunities of a resale program. 

With a robust understanding of the benefits and challenges of a retailer’s resale program, a committed cross-functional team and a north star to point to, brands are well-equipped to develop successful programs — and expand beyond resale with other circular business models that help build a more responsible business and a more sustainable, circular economy.

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JBS, the world’s largest meatpacker, made its debut on the New York Stock Exchange in June, marking a comeback for a company that in 2020 had paid billions in fines to Brazilian and U.S. authorities to settle sweeping bribery and corruption cases. 

The rebrand included setting ambitious climate goals to appeal to ESG-focused investors: zero deforestation in its cattle supply from the Amazon by 2025 and net-zero emissions in its global operations — which span from Brazil to the U.S. and Australia — by 2040.

Four years later, though, the company’s plans still lack transparency and credibility, according to sustainability experts. Jason Weller, its global chief sustainability officer, told Reuters in January that JBS’s net-zero pledge “was never a promise,” but an “aspiration.” The Brazilian company hasn’t disclosed how much of its greenhouse gas emissions are attributed to land-use changes like deforestation, likely a significant source of its emissions, given that beef production accounts for more than three-quarters of the Amazon’s destruction.  

The meatpacker, which supplies McDonald’s, Walmart and other big retailers, reported small cuts to emissions between 2019 and 2023 and is investing in new tools to monitor its network of cattle farmers in Brazil. But those actions aren’t enough to meet its climate goals, according to environmental watchdogs, sustainable investment analysts and groups that evaluate corporate climate plans. They noted that JBS’s public listing in the U.S. means it can raise more cash from investors to help fund expansion into countries like Vietnam and Nigeria. Since June, JBS’s share price has risen to $15.60, an increase from its debut at nearly $14.

JBS didn’t respond to requests for comment. Chief Financial Officer Guilherme Cavalcanti told The Financial Times in June that it’s in the company’s interest to end deforestation “because we depend on the climate to have pasture for animals.”

Track record

In 2021, JBS was the first global meatpacker to announce a net-zero emissions goal. However, JBS’s net-zero plan now lags behind that of its peers, including Danone, Mars, Nestlé, and PepsiCo, according to an analysis by the NewClimate Institute in June. The think tank rated JBS’s strategy as “very poor,” citing little evidence that the company is embarking on deep emissions cuts. That would require shifting to more plant-based products, reducing fertilizer use and food waste, and eliminating deforestation. JBS hasn’t disclosed whether it will rely on carbon offsets to achieve its 2040 goal.

“Without major innovations to drastically reduce the emissions footprint of meat production or diversifying away from this highly GHG emissions-intensive industry, it is not credible for livestock agribusinesses to claim that they are on a path to deep decarbonization,” the NewClimate Institute said. 

JBS’s targets cover only Scope 1 and 2 emissions, which, even if achieved by 2030, would lead to a 1.1 percent overall reduction compared to 2019. That’s because 97 percent of JBS’s emissions are Scope 3 — the result of tens of thousands of individual farming operations and millions of consumers cooking, refrigerating and disposing of its products.

Biggest challenge: deforestation

JBS slaughters some 76,000 head of cattle a day from farms across the globe. In Brazil, it’s particularly difficult for agribusinesses to link cattle to deforested lands because the animals pass through many different farms before reaching the slaughterhouse, said Pablo Majer, conservation specialist at WWF-Brazil.

“The problem is those indirect suppliers, and meatpackers don’t have information on them,” Majer said. 

Brazil’s federal databases of land records and livestock movements aren’t interlinked and have quality issues, reported Angela Flaemrich, director of stewardship services for Morningstar Sustainalytics, who traveled to Brazil in October 2024 to engage with companies, including JBS, on behalf of institutional investors.

Satellites can show where trees are cleared, but not when cattle move or who owns the land. 

“I think JBS has put in a tremendous amount of work into this,” Flaemrich said, noting that the company traces direct suppliers — i.e., farms that are one step away from the slaughterhouse.

JBS created a Transparent Livestock Platform, which enables direct suppliers to submit information about the sources from which they purchased cattle. 

That doesn’t solve the problem of tracing cattle from birth, however, which would require a nationwide animal identification system using tags affixed to calves’ ears at birth, said Flaemrich. 

JBS has pilots underway, including with the government of Pará. The Brazilian state, which has some of the highest rates of deforestation in the Amazon, aims to tag all the cattle in the state by 2026. JBS said it will invest $43 million over three years to help farmers offset their costs.

Morningstar Sustainalytics gave JBS a “severe risk” rating on ESG issues. Sydney Krisanda, a research analyst, said the company has some strong initiatives to manage carbon within its own operations but continues to receive fines for sourcing cattle from deforested lands in Brazil.  

Political and economic realities

There likely won’t be deforestation-free cattle from Brazil until its largest customers demand it — namely, China, the U.S. and Middle Eastern countries like Egypt.

China buys about 40% of Brazil’s beef exports, Majer said, but the country is more interested in food security than ending deforestation. The U.S., the second-largest buyer, has rolled back its climate agenda under President Donald Trump. While the European Union is requiring traders to prove that cattle, soy, coffee and other imports don’t come from deforested land, the bloc is a relatively small customer for Brazil’s beef companies.

Between 2022 and 2024, the environmental watchdog groups Mighty Earth and AidEnvironment alerted JBS to more than 100 cases of deforestation in its cattle supply chain in the Amazon and Cerrado regions. JBS said the majority weren’t their suppliers, but provided no evidence to support those claims, Mighty Earth said.

Meanwhile, Brazil President Luiz Inácio Lula da Silva is focused on boosting the country’s economy, Majer said. Brazil is the world’s largest exporter of beef and soybeans, and agribusiness accounts for about 25 percent of the country’s annual GDP.

“It’s very tricky to balance these two agendas, economic and the environment,” Majer said.

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