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New research on environmental sustainability from Harvard Business School faculty on issues including the role of companies to mitigate climate change, corporate social responsibility, reporting to stakeholders, government relations and development of Chief Sustainability Officers.
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Are Companies Actually Greener—or Are They All Talk?

by Rachel Layne

More companies than ever use ESG reports to showcase their social consciousness. But are these disclosures meaningful or just marketing? Research by Ethan Rouen delves into the murky world of voluntary reporting and offers advice for investors.

Larry Fink at BlackRock: Linking Purpose to Profit

Re: George Serafeim

In 2014, Larry Fink started writing letters to the leaders of some of the largest publicly listed companies, urging them to consider the importance of environmental, social, and governance (ESG) issues. Fink is the chairman and CEO of BlackRock, one of the largest asset management houses in the world. The firm’s success was rooted in its cost-effective, passive investment products that rely more on tracking indices and funds. But Fink wanted his firm to engage with the companies in which they invest and hold them accountable for their social and environmental impacts. What role should investors play in urging business leaders to take environmental, social, and governance issues more seriously and enforcing compliance? Harvard Business School professor George Serafeim discusses the merits of Fink’s approach, the importance of corporate investments in ESG themes, and how to lead a company driven by purpose and profit in his case, “BlackRock: Linking Purpose to Profit,” and his new book Purpose and Profit: How Business Can Lift Up The World.

The Moral Enterprise: How Two Companies Profit with Purpose

by Avery Forman

Despite polarized attitudes, Rebecca Henderson argues that it's the perfect time for companies to reset their moral compass. In an essay from the book A Political Economy of Justice, she explores the social efforts of Cadbury and Unilever.

How to Scale a Startup Marketplace for Used Furniture

Re: Ayelet Israeli

AptDeco, a peer-to-peer marketplace for used furniture in the New York City area, was growing rapidly in the massive $120 billion furniture market, despite its complexity and high costs. Co-founders Reham Fagiri and Kalam Dennis were considering different options to scale the business, including converting sellers into buyers and vice versa, finding superusers to fuel the supply for their platform, expanding to new markets, and rebranding with a sustainability focus. Professor Ayelet Israeli and AptDeco co-founder Kalam Dennis discuss the best way to scale the business in the case, “AptDeco: Circular Economy Furniture Marketplace.” Open for comment; 0 Comments.

How Footwear Startup Allbirds is Decarbonizing Fashion

Re: Michael W. Toffel

In 2021, the footwear startup Allbirds was extending its product range into apparel and expanding beyond its online store to open more retail stores around the world. It was also freely sharing its know-how and material innovations with its competitors to try to scale its efforts to decarbonize fashion, by substituting natural materials for conventional petroleum-based materials and leather. But the company also had to find ways to remain differentiated, based on design and comfort. Professor Mike Toffel and Allbirds co-founder and CEO Joey Zwillinger discuss the growing environmental impact of the fashion industry and how the company managed the tension between advancing its environmental mission and staying ahead of competitors in the case, Allbirds: Decarbonizing Fashion. Open for comment; 0 Comments.

What's the Role of Business in Confronting Climate Change?

by Lynn Schenk and Dina Gerdeman

COP26 shined a light on the complexities of addressing the climate crisis. We asked Harvard Business School faculty members to discuss how business leaders can help spur change and what opportunities might emerge. Open for comment; 0 Comments.

What Does an ESG Score Really Say About a Company?

by Kristen Senz

A key gauge in the $30 trillion sustainable investment market provides a murky picture of corporate social responsibility. Research by Anywhere Sikochi and George Serafeim probes the underlying factors. Open for comment; 0 Comments.

Can Fabric Waste Become Fashion’s Resource?

by Geoffrey Jones and Shelly Xu

COVID-19 worsened the textile waste crisis. Now it's time for the fashion industry to address this spiraling problem, say Geoffrey Jones and Shelly Xu. Open for comment; 0 Comments.

Accounting for Product Impact in the Telecommunications Industry

by George Serafeim and Katie Trinh

A product impact framework is a systematic methodology applicable to different companies across a wide range of industries. This study examines the telecommunications industry, estimating the value of a product’s reach, accessibility, quality, optionality, environmental use emissions, and end-of-life recyclability.

The ESG-Innovation Disconnect: Evidence from Green Patenting

by Lauren Cohen, Umit G. Gurun, and Quoc H. Nguyen

Energy-producing firms are more likely to produce “blockbuster” green patents than other firms. Yet energy firms are excluded from many environmental, social, and governance (ESG) funds, and are the targets of divestiture campaigns whose stated aims often include green energy innovation.

Accounting for Product Impact in the Consumer Finance Industry

by George Serafeim and Katie Trinh

A framework and method for measuring and monetizing product impact across industries, applying it to two competitors in the consumer finance space.

The European Commission’s Sustainable Corporate Governance Report: A Critique

by Mark Roe, Holger Spamann, Jesse Fried, and Charles Wang

The European Commission commissioned a report on sustainable corporate governance that purports to find serious problems of corporate short-termism. The report is wholly flawed: it conflates time horizon problems with externality problems, mismeasures investment and its financing, and proposes ineffective, possibly harmful reforms.

Accounting for Organizational Employment Impact

by David Freiberg, Katie Panella, George Serafeim, and T. Robert Zochowski

Impact-weighted accounting methodology standardizes previously disparate measures of impact, in this case the impact of employment. This paper’s methodology and analysis of Intel, Apple, Costco, and Merck shows the feasibility of measuring firm employment impact for insight into firm practices and performance. Closed for comment; 0 Comments.

Updating the Balanced Scorecard for Triple Bottom Line Strategies

by Robert S. Kaplan and David McMillan

Society increasingly expects businesses to help solve problems of environmental degradation, inequality, and poverty. This paper explains how the Balanced Scorecard and Strategy Map should be modified to reflect businesses’ expanded role for society.

How to Launch a New Biosciences Product: Start Small or Dive in?

Re: Jeffrey J. Bussgang

C16 Biosciences wants to replace palm oil, a major contributor to deforestation, with a lab-grown substitute. But CEO Shara Ticku faces a tough decision in bringing the product to market. Jeff Bussgang discusses his case study. Open for comment; 0 Comments.

Two Case Studies on the Financing of Forest Conservation

by Andrew Baxter, Connor Cash, Josh Lerner, and Ratnika Prasad

Case studies about The Conservation Fund and Sonen Capital highlight three broad lessons about fresh approaches to the ownership and management of forestland.

Market Investors Pay More for Resilient Companies

by Kristen Senz

During a market collapse, investors will pay up for companies considered resilient in their response, according to George Serafeim. Open for comment; 0 Comments.

Capitalism Is More at Risk Than Ever

by Martha Lagace

Almost a decade after writing Capitalism at Risk, Joseph Bower, Herman Leonard, and Lynn Paine argue that not enough companies are stepping up to fix big global problems. Open for comment; 0 Comments.

Corporate Resilience and Response During COVID-19

by Alex Cheema-Fox, Bridget LaPerla, George Serafeim, and Hui (Stacie) Wang

Investors look for evidence during a market crisis that a company is resilient. This study includes findings that challenge the notion that companies need to adopt practices that hurt their employees because investors want them to do so.

How Anchor Investors Help Impact Funds Succeed

by Sean Silverthorne

3Questions A startup fund's ability to attract a major first investor is a signal to others that the investment pool is just fine for entering. Shawn Cole and Rob Zochowski answer questions about anchor investors. Open for comment; 0 Comments.