The Daily Tell

Under pressure from institutional shareholders to reduce pesticide use, the McDonald’s Corporation agreed to formally survey pesticide use in its potato supply chain and promote best practices for pesticide reduction.

McDonald’s, as the largest buyer of potatoes in the U.S., said its commitment will support progress on pesticides, which affect the environment, public health and farm employees. The agreement led to the withdrawal of a shareholder resolution filed by the Bard College Endowment, Newground Social Investment and the AFL-CIO Reserve Fund.

"Because McDonald’s has such a commanding presence in the marketplace, this commitment offers the promise of significant reductions of pesticide use, which will benefit consumer health, as well as farm workers, local agricultural communities and the environment," said Bruce Herbert, CEO of Newground Social Investment.

Students and shareholder activists said the agreement was a positive example of shareholders engaging companies on social change. "The Bard community believes that colleges and universities can leverage their power as investors for positive social change," said Bard student Katherine Burstein, a member of the school’s committee on investor responsibility.

The shareholder resolution was the first of its kind initiated by a college or university, according to Investor Environmental Health Network (IEHN).

Richard Liroff, executive director of the IEHN, a collaboration of investment managers advised by NGOs, said other food companies like Sysco, General Mills and Campbell’s have already implemented pesticide use reduction.

"We welcome McDonald’s stepping up to the plate and look forward to supporting the company’s efforts to reduce pesticide use in the future," Liroff said.

Under the agreement, McDonald’s said it will survey its U.S. potato suppliers for best practices in pesticide reduction, which the company will encourage other suppliers to adopt. The company will also communicate its findings to shareholders and in the company’s social responsibility report.

Pennsylvania Governor Edward G. Rendell and Philadelphia Mayor Michael A. Nutter named new members today to the Philadelphia School Reform Commission (SRC), the governing body formed after the state took control of the Philadelphia school district in 2001.

Robert L. Archie Jr., Joseph Dworetzky and Johnny Irizarry will join current SRC members Heidi Ramirez – who is being re-nominated for a full term – and Denise McGregor Armbrister. Rendell announced that Archie will serve as the commission’s chair.

The governor said the school district has made progress since the state takeover, including a doubling of the number of students who are on grade level in reading and math.

"The Philadelphia school district has made enormous strides with Sandra Dungee Glenn at its helm, and I am grateful for her service and her commitment to the city’s children," Rendell said.

Rendell cited the district’s balanced budget and the city’s requirement that students take an African-American history course before they graduate – the first such requirement in the country – among the outgoing chair’s accomplishments.

Rendell nominated Dworetzky, a former Philadelphia city solicitor; Armbrister; and Ramirez, whom he first nominated to the SRC in 2007. State law stipulates that the governor nominate three of the SRC members and the mayor appoints the balance.

Last month, the SRC released its five-year strategic plan for improving achievement levels, graduation rates and achievement gaps between racial groups in the district.

Currently, one-third of Philadelphia school children score below proficiency in reading and 31 percent score below basic math proficiency.

Only 61 percent of students in the district graduate within six years and there is a 25 percent gap in reading scores between white students and black students.

PepsiCo today announced a pilot project of 30 low-emissions Pepsi-Cola vending machines in high-consumer traffic areas in the Washington, DC area.

The vending machines use less energy and generate 12 percent less greenhouse gas (GHG) emissions than current vending machines, the company said. The machines use carbon dioxide (CO2), a natural refrigerant, instead of hydrofluorocarbons (HFCs), marking the first time CO2 machines have been introduced in the United States.

PepsiCo said the pilot project represents its commitment to reducing the environmental footprint of the vending and cooling equipment used to sell its drinks. PepsiCo was the first in the industry to mandate that its vending machines and coolers be free of HFCs.

"Many people don’t realize that the largest part of a vending machine’s GHG emissions – about 95 percent, in fact – come from the energy required to run it," said Robert Lewis, vice president of packaging and equipment development for PepsiCo. "The insulating foam and refrigerant gases are responsible for the rest and we’re committed to reducing all parts of the equation."

PepsiCo has continually improved the energy efficiency of its machines over the years. The 2008 model vending machines use 51 percent less energy than the 2003 models and 2008 coolers consume 44 percent less energy than 2003 models, the company said.

Through these improvements, the beverage company has reduced GHG emissions from its refrigeration equipment by 598,000 metric tons – which is equal to removing 52,000 cars from the road in a year or planting 125,000 trees annually.

The Environmental Protection Agency (EPA) recently awarded PepsiCo a 2009 Energy Star Sustained Excellence Award in recognition of its commitment to protecting the environment through energy efficiency.

World Vision, a Christian relief organization, said it will send emergency supplies and staff to Fargo, North Dakota, where the Red River overflowed its levees last week causing widespread flooding and property damage.

The latest reports indicate that additional flooding due to a snow storm could cause the river to crest again and delay relief efforts. The National Guard estimated the state has spent $40 million so far to shore up flood walls, according to the Associated Press.

World Vision said it will initially send one truckload of emergency supplies and staff to assess the needs of affected families. The agency’s first shipment will leave Seattle on Tuesday and arrive at World Vision’s Storehouse in the Twin Cities on Thursday.

The group is sending cleaning supplies to help more than 150 families fight black mold and other hazards once they are able to return to their homes. The church group also plans to supply hygiene kits, paper towels, women’s clothing and trash bags; along with soccer balls, board games, coloring books, baby clothing, backpacks, school supplies, stuffed animals and shoes.

"It’s devastating for children and families to see their homes flooded and be forced to evacuate. But with this historic disaster happening on top of the economic downturn, people are going to be hurting even more," said Phyllis Freeman, World Vision’s director for domestic disaster response.

Freeman said the organization plans to coordinate with local churches and community organizations to assist low-income families and others already struggling due to the recession.

"Recovery is going to take time, even after it’s safe for these families to return," Freeman said. "Families that have had their homes heavily flooded will need to shovel out mud, wash down the walls, bleach everything and possibly rip out drywall."

The Gary and Mary West Foundation has announced $45 million in funding to create a medical research organization dedicated to advancing health through wireless technology.

Called the West Wireless Health Institute, the organization is one of the first in the world seeking to advance health and wellbeing using wireless technologies such as sensors that can track parameters through remote monitoring.

"We believe this emerging field will completely transform health care as we know it," said Gary West, who will serve as chairman of the institute’s board of directors. "The Institute aims to be the catalyst to move ideas and concepts quickly into reality, bringing cost-effective wireless health solutions to doctors, patients and their families."

Dr Eric J. Topol, chief academic officer at Scripps Health and Donald Jones, vice president of health and life sciences at Qualcomm, will also serve on the board. The institute, headquartered in San Diego, California, will be affiliated with Scripps Health and sponsored by Qualcomm.

The institute’s researchers will conduct clinical research on solutions to prevent, diagnose, manage and treat major health conditions through wireless technology innovations. Wireless sensors have been deployed to continuously track health indicators such as blood sugar, blood pressure, vital signs, sleep state and caloric intake and expenditure.

"Not only does this fit the optimal models of individualized and consumer-driven health care, but there is tremendous potential to upgrade quality of care, reduce the cost burden and shift away from reactive to preventive medicine," said Topol.

Engineers such as Jones will lead the integration of wireless technology with the clinical research, enabling inventors and medical device manufacturers to innovate ideas for wireless solutions to health problems, the institute said.

"We believe the launch of the West Wireless Health Institute will lead to levels of care never before seen in the delivery of healthcare," Jones said.

The National Academies of Science today kicked off a meeting of scientists, politicians and business and nonprofit leaders to strategize about solutions to the global climate crisis.

The two-day summit on climate change, called America’s Climate Choices, will produce reports proposing how the nation can mitigate climate change, adapt to its impacts and provide paths to action, according to the NAS.

Ralph J. Cicerone, president of the NAS, said climate change is intimately linked to other strategic challenges facing the country, including energy and national security.

"We are pleased that Congress recognized the need for independent, expert advice to inform and guide policymaking related to climate change and that so many of the nation’s top experts have volunteered to serve on the America’s Climate Choices studies," Cicerone said.

Four panels will issue reports on specific topics related to climate change and the summit will produce an overarching report that identifies short-term actions and long-term strategies to respond to climate change, the NAS said.

One panel devoted to mitigating the magnitude of climate change will focus on actions to reduce domestic greenhouse gas emissions and other human causes of climate change, such as changes in land use.

Other panels will examine means for advancing the science of studying climate change; the effectiveness of actions taken to limit the magnitude of future climate change, including "geo-engineering" approaches; and the activities, products and tools that could help ensure policy actions and decisions are informed by the best available technical knowledge.

In total, 90 experts have volunteered to serve on the summit’s panels, including Representative Bart Gordon, chair of the House committee on science and technology; James J. Mulva, chairman and CEO of ConocoPhillips; and James Woolsey, former CIA director and partner in VantagePoint Venture Partners.

Business travel executives gathered this week for the first ever Green Travel Summit, where industry leaders discussed strategies for reducing the environmental impact of corporate travel.

A report issued at the summit identified 10 challenges facing organizations in greening the corporate travel industry, most notably how to begin the process and how to overcome resistance to change.

With travel as the second largest variable expense for organizations, the summit emphasized the opportunity for corporate travel companies to provide measurable cost savings, reduced carbon emission liability and differentiation from competitors as socially responsible companies to stand out in the marketplace, summit organizers said.

One of the highlights of the summit was the awarding of the first Corporate Social Responsibility Awards given out by the National Business Travel Association (NBTA), which recognized Symantec and InterContinental Hotels Group (IHG) for innovative programs and initiatives.

Kevin Maguire, president of NBTA, said the first NBTA CSR winners were selected from dozens of applicants through a rigorous review process.

Symantec drew recognition for its initiatives to minimize carbon emissions with enhanced video conferencing and a regional commute-reduction program. IHG won for its commitment to supporting societal needs and reducing environmental impacts through its Americas region sustainability initiative Chase the Extraordinary.

Leilani Latimer of NBTA’s CSR committee said the NBTA developed the program to provide leadership and resources for its member organizations, to help them better understand the balance between the social, economic and environmental impact of their business travel programs.

“The initiatives undertaken by these winners and all applicants serve as perfect examples of how businesses can create long term, sustainable value for their key stakeholders, from investors to employees and communities,” Latimer said.

Award winner semi-finalists included KPMG, Kimpton Hotels and Continental Airlines.

A group of social entrepreneurs is launching a foundation called Social Venture Philanthropy of Sacramento to provide funding and expertise to nonprofit organizations.

Jack Crawford, general partner of Velocity Venture Capital and a co-founder of the foundation, said professionals who are committed to philanthropy want to contribute more to vibrant nonprofit organizations, rather than just issuing checks.

Due to the current state of philanthropy, some foundations and funders are looking at a new model of giving that has been called social entrepreneurship, social venture philanthropy and capitalist philanthropy.

Social venture philanthropy is a growing trend in cities around the U.S., including places with a lot of venture capital like Seattle, Silicon Valley, Los Angeles and San Diego.

"The concept is catching on because people understand that by pooling resources and talents, they can have a much greater impact on a nonprofit and a community,” said Ruth Jones, executive director of the Social Venture Partners International network.

Social Venture Philanthropy of Sacramento’s partner organization will be the Sacramento Region Community Foundation, which assists area nonprofits.

The Sacramento foundation’s first round of funding and expertise will go to four or five select organizations that can work together around the foundation’s goal of making the Sacramento region one of the most physically fit in the nation, the group said. Subsequent rounds of funding will be available to address other needs identified by the group’s board.

Crawford said the group will launch with an invitation-only dinner to introduce potential donors to the venture philanthropy concept.

“I believe this new model of philanthropy will see local nonprofits outperforming their counterparts in other regions," Crawford said.

A resolution in the U.S. Senate voicing support for the current level of tax deductions for charitable donations was defeated Friday by a 49 to 48 vote.

Senator John Thune of South Dakota submitted a sense of the Senate resolution expressing support for the full preservation of the federal income tax deduction for charitable giving, as opposed to the proposal by President Obama, which would cut the deductions allowed for wealthy individuals.

The resolution was offered as an amendment to a National Service Bill being debated in the Senate that would increase federal involvement with public service organizations. Thune said the president’s plan would result in less charitable giving nationwide.

"The Senate missed an opportunity to affirm our commitment to charitable giving," Thune said. "Government programs alone cannot replace the services that non-profits and private charities provide to those in need, especially during these difficult economic times."

Thune said the administration’s plan, which has generated controversy within charitable circles, would effectively limit charitable giving at a time of its greatest need.

"Americans are generous people, even in difficult times. By reducing the tax deduction for charitable giving, the Administration is discouraging private giving and the negative effect will be hardest on those who are most in need of help," Thune added.

Obama said in a news conference earlier this week that he believes tax deductions should not be the primary consideration in charitable giving and wealthy individuals can still afford to give at the same level.

Some charitable organizations have come out publicly against the president’s tax deduction proposal because it could lead to some individuals giving less.

Three universities in California are making progress toward meeting green campus initiatives in part due to solar power systems installed on campus.

Solar Power Partners announced this week that solar systems at the University of California at San Diego, Point Loma Nazarene University and the California Institute of Technology (Caltech) are up and running and helping to provide power on the campuses.

Of the newly operational solar power systems, Bill Irwin, senior director of facility management at Caltech said, “It saves money, fosters awareness, reduces the Institute’s environmental impact, and provides environment stewardship.”

Irwin added that the solar systems are one way that Caltech is focusing on sustainability and pursuing renewable energy resources.

According to Solar Power Partners, the universities only pay for the energy produced by the system which helps to stabilize their energy rates. The actual solar system is owned and operated by Solar Power Partners.

Both UC San Diego and Caltech have the solar systems mounted on parking structures on campus. At Caltech over the next year engineers say energy output from the solar system will equate to eliminating 527,000 pounds of CO2 emissions from the atmosphere.

Solar Power Partners worked closely with each university to ensure the implementation of the new energy apparatus would mesh nicely with the green initiatives and renewable energy goals set at the school.

At UC San Diego, the new structure helped the educational institution earn the Climate Action Registry Climate Action Leader status.

The energy company said that in addition to listening to each university’s long-term needs, they enlisted the help of laborers in the area for system installation – another way to help boost the local economies.