Issue Papers: Sufficient, Sustainabile Livelihood for All: Sustainability

Church Council Actions

Sufficient, Sustainable Livelihood for All: Sustainability
NOVEMBER 2012

Sufficient, Sustainable Livelihood for All: Sustainability

Background

The ELCA social statement “Sufficient, Sustainable Livelihood for All” (ELCA, 1999)[1] is a benchmark for our role as Christians in economic life. Because of sin, we have fallen short of our responsibilities to one another in this world, but we live in light of God’s promised future that ultimately there will be no hunger and injustice. This promise makes us restless with a world that is less than what God intends. In economic matters, this draws attention to:

• The scope of God’s concern: “for all”;
• The means by which life is sustained: “livelihood”;
• What is needed: “sufficiency”; and
• Long-term perspective: “sustainability” (pg. 3).

“The vantage point of the kingdom of God motivates us to focus on more than short-term gains. Humans, called to be stewards of God’s creation, are to respect the integrity and limits of the earth and its resources” (pg. 14). We are challenged to pursue policies and practices concerning sustainability. The multitudes around God’s global table are recognized as neighbors rather than competitors or strangers (pg. 17).

Sustainable development is about ensuring a better quality of life for everyone, now and for generations to come. Thus it combines ecological, social, and economic concerns and offers business opportunities for companies to improve the lives of the world’s people (see for example, the World Business Council on Sustainable Development[2]). The International Institute for Sustainable Development further develops the concept to include, “Sustainable production and consumption to mean using, disposing and transforming resources in a way that minimizes harm to the environment while supporting the well being of people.”[3]

Although the concept of sustainability continues to evolve, several instruments, guidelines, and benchmarks have been developed and are now being used in the governmental and corporate sectors. The first of these is the Global Reporting Initiative Guidelines[4], a long-term, multi-stakeholder, international process with a mission to develop and disseminate globally applicable Sustainability Reporting Guidelines. Many corporations have embraced these guidelines as a way to organize voluntary reporting concerning issues of sustainability. Industry sector supplements, including one for non-profits, have been developed so that corporations have similar understandings for reporting metrics for their particular industry.

In 2003, the 3rd edition of “Principles for Global Corporate Responsibility: Bench Marks for Measuring Business Performance” was released. Faith-based investor groups from Australia, Hong Kong, Canada, South Africa, Colombia, and the United Kingdom, as well as the U.S.-based Interfaith Center on Corporate Responsibility, gathered to develop these principles and offer a long-range view for corporations focused on protecting the environment, creating sustainable communities, and ensuring human dignity.

With these tools, corporations are able to look at a “triple bottom line”—the integration of social, environmental, and economic performances. This integrated, holistic approach is also referred to as a corporation’s sustainability performance.

ELCA Social Policy

“Sufficient, Sustainable Livelihood for All” (ELCA, 1999) develops this church’s vision of sufficiency and sustainability focusing on economic life of all, with an emphasis on those who are poor and disenfranchised. It particularly calls for companies to bear the wider social and environmental costs of what they produce (pg. 14). Numerous Church Council actions support standing with those who are poor and disenfranchised around a variety of environmental and social issues. ELCA advocacy plans have outlined a variety of taxation, environment, employment, globalization, and fair trade issues.

Corporate Response

In responding to many converging calls for increasing disclosure, accountability, and transparency, many in the corporate world are responding by voluntarily reporting on sustainability and/or the triple bottom line. The call is not only for individuals to be called to high ethical practices but also for corporations to review their corporate ethics and the impact of their operations on peoples and communities in a public and verifiable manner.

The majority of the Fortune 500 companies have implemented some type of sustainability reporting. It is reasonable to ask all companies to begin looking at this type of reporting if they are not already doing so. Additionally, companies might be asked to increase the quality and relevance of triple bottom line reporting and/or use the format established by the Global Reporting Initiative. These measurements and reporting mechanisms could help companies identify ways to run operations more efficiently and identify problems that might result in liability for the company. A growing group of companies share their work with a variety of stakeholders for input prior to publication of such reports.

Social Criteria Investment Screens

None currently apply to this paper.

Resolution Guidelines for ELCA

1. We support public disclosure of information on corporate sustainability based on the format established by the Global Reporting Initiative.
2. We support the preparation of sustainability reports.
3. We support requests for policies reflecting the triple bottom line of environment, social and economic factors.
4. We support requests for sustainability policies and performance, including multiple, objective statistical indicators.
5. We support preparation of reports on a company’s sustainable paper purchasing policies, including the costs and benefits of incorporating these policies into the supply chain.
6. We support reports on sustainable management of water including

• potential environmental and community impacts of all company and affiliate ventures that extract water from water scarce areas and
• regulatory, environmental and reputational risks associated with water as it relates to a company’s operations and investments.

Resolution guidelines for ELCA – General

We support practices of good governance, specifically:

• A company having an independent chair or independent lead director;
• Reports on policies and procedures for political contributions and expenditures (both direct and indirect made with corporate funds;
• Reports on any portion of any dues or similar payments made to any tax exempt organization that is used for an expenditure or contribution which might be deemed political; and
• Guidelines or policies governing the company’s political contributions and expenditures.

Recommended by Advisory Committee on Corporate Social Responsibility, September 6, 2003

Endorsed by Division for Church in Society Board, October 24, 2003

Approved by Church Council, November 2003

Updated by Advisory Committee on Corporate Social Responsibility January 11, 2008

Approved by Church Council, April 2008 [CC08.04.24a]

Approved by Church Council, November 11, 2012 [CC12.11.44w]