Footprint Network Blog - Our Partners’ Work
Global Footprint Network first began encouraging greater environmental risk integration into bond credit analysis five years ago. Since then, a growing number of fixed income investors are following suit. We are particularly delighted by the recent announcement PRI (Principles for Responsible Investment), an influential investor group who is calling on credit rating agencies to incorporate environmental, social and governance (ESG) factors into their credit analysis more systematically and transparently.
Some of the world’s major rating agencies last June confirmed their willingness to participate in a project to make this vision a reality. Now the PRI is calling on fixed-income investors to sign a Statement on ESG in Credit Ratings before its official launch on Friday, May 6, to be at forefront of this call to action.
As of April 15, 14 investors already have signed on, including MN, an asset owner in the Netherlands and member of our Carbon Disclosure Working Group.
The initial success of this campaign underscores the widespread movement towards integrating environmental risk into investment decisions. A growing number of investors are coming around to realizing what our research has shown: Resource constraints and climate change are material risks that can affect national economies and credit worthiness not only long term but in the short- and medium-term as well.
The PRI makes a similar point in its press release, noting that integrating ESG into credit analysis provides more granular insight into issuer creditworthiness. The PRI further points out that ESG issues such as natural resource management affect government’s tax revenue, trade balance and foreign investment.
Credit rating agencies are a critical part of the world’s US$100 trillion debt capital markets. But currently they are not transparent in how they consider ESG factors. Indeed, 78% of 99 investors surveyed by the PRI believed ESG should be more explicit in ratings.
This new PRI initiative will go a long way toward increasing the systematic and transparent integration of ESG factors into credit ratings. We applaud the PRI for taking this bold, important step, and urge investors and credit rating agencies to endorse it.
Together with our partner Earth Day Network, we’re happy to give trees a special nod today.
At Global Footprint Network, we have a soft spot for trees and forests. They are an essential pool of biodiversity. And they are one of our most important ecological assets: A whopping 70 percent of humanity’s Ecological Footprint is comprised of demand for forest products (paper, timber, etc.) and carbon capture, an ecological service that forests provide.
In fact, even if the whole Earth were covered with forests, we still wouldn’t have enough to meet our current demand for their products and services…Besides, we obviously need to leave some productive land available for crops to feed us.
Overall, total forest biocapacity worldwide has declined by 5 percent since 1961, the earliest year reliable data is available. On a per-person basis, the decline is much greater, at 59 percent.
Brazil, Russia, the United States and Canada are the countries with the most forested land in the world today. Combined, they generate 54 percent of the renewable goods and services that all forests provide globally.
Protecting, restoring and maintaining forests is a significant responsibility of governments not just for the sake of their people, but for the world at large, as greenhouse gas emissions know no borders.
Of the top five countries with the highest forest biocapacity in the world, China has shown the most remarkable trend reversal, followed by the United States.
Planting trees is an important, wonderful mission to pursue. But at least as important is focusing on reducing the demand we put on forests. First and foremost: carbon sequestration. Because we produce more carbon than our forests can absorb, it accumulates in the atmosphere and contributes to climate change. Since we can never plant enough trees to mitigate climate change, the path is clear: we need to reduce our carbon emissions.
Click here for more information and graphs about the status of forests around the world.
Would you believe this colorful Footprint image above was created from actual origami pieces? This charming depiction of the Ecological Footprint was used in “The Ecological Footprint for Sustainable Living in Japan” that we produced with WWF Japan last year. We tip our hats to Almazora Carla Marie Hugo, Trina D.Dela Rama and Rina Malonzo of Tink Tank Studio for their labor of love spent to produce the origami pieces.
Japan’s Ecological Footprint is smaller than it was 10 years ago, but the country still demands more from nature than its own ecosystems can renew. In fact, today, Feb. 21, marks the national ecological deficit day for Japan. Its citizens’ demand for the goods and services that its land and seas can provide—fruits and vegetables, meat, fish, wood, cotton for clothing and carbon dioxide absorption—now exceeds what Japan’s ecosystems can renew over the full year. Japan’s high population density is one key contributor to its ecological deficit; per person consumption is another contributor.
When a nation like Japan is in ecological deficit, it meets demand by importing, liquidating its own ecological assets and/or using the global commons by emitting carbon dioxide into the atmosphere. Trade is a fact of life in our globalized economy, but just as a trade deficit can be a risk, so can an ecological deficit. See how much nature Japan has (biocapacity) and how much its citizens use (Ecological Footprint) in the figure below.
Learn more about Ecological Footprint work in Japan:
Beijing, China–Global Footprint Network launched the beta version of a new website, www.zujiwangluo.org, on Nov. 12 to build on and support the growing interest in the Ecological Footprint among partners and practitioners in government and academia throughout China.
The website, a core element of our Footprint initiatives in China, was launched today to support WWF China’s Living Planet Report-China 2015. The report, to which Global Footprint Network contributed, shows that in less than two generations time, China’s per-person demand on nature has more than doubled. This increase in demand went hand in hand with a substantial loss in the abundance of wild species: The average population size of China’s terrestrial vertebrates declined by half from 1970 to 2010.
Global Footprint Network’s new China website aims to serve as a collaboration platform for practitioners in government and academia in China who share the common goal of making Ecological Footprint accounting and related tools as rigorous as possible to fulfill China’s vision of an ecological civilization. The website’s name means “footprint network” in Mandarin.
This is a series of blog posts titled "Making A Difference" where we highlight a different voice each week.
Throughout 2015, we have been eagerly awaiting the climate talks in Paris that began this week. Recent events have expanded the conversation to restoring peace, security and safety. To live in harmony and peace, however, we need to ensure a healthy world that guarantees all people have basic resource security. The link between climate change and national security continues to be more important than ever. Read more.
Not a day goes by that I don’t wake up and think, "What am I going to face today? What kind of issue will it be: fish kill, pollution from industry, or destruction from a typhoon?"
As the general manager of the Laguna Lake Development Authority, I am responsible for managing and protecting the environment one of the most densely populated areas on earth, the home of 25 million people, in the heart of the Philippines. Read Neurus' story.
Two years ago I decided against building my dream home after falling in love with the Ecological Footprint. A question for clearly measuring sustainability led me to this unique data-based approach to calculate humanity's impact on the planet, including my family's. Read Daniel's story.
Since I was a child growing up in southern Iran, years of severe drought have threatened the vitality of the rich farmland in my native Fars province, Iran’s traditional bread basket. Today, as a PhD student in agricultural development at Shiraz University in Iran, I am exploring innovative ways to help make agriculture sustainable in Iran, especially in the Fars province. Read Mahsa's story.
I had two passions as a kid: nature and technology. After starting as an electrical engineering and computer science undergraduate at University of California at Los Angeles (UCLA), I realized my path lay elsewhere. Read David's story.
The United Nations launches global goals to achieve humanity’s collective dream: sustainable development
This week marks an extraordinary moment for humanity. Representatives of 193 nations are convening in New York at the United Nations to launch the Sustainable Development Goals (SDGs). These goals lay out the conditions we need to secure great lives on this one planet for all, regardless of income level, gender or ethnicity.
At a time when global economic uncertainty and human tragedy dominate the news cycle, this unique opportunity to bring the universal dream of sustainable development to the forefront of public attention worldwide is definitely worth celebrating.
We are pleased that the UNEP World Conservation Monitoring Centre has proposed the Ecological Footprint as an SDG metric for Goal 12.2: "by 2030 achieve sustainable management and efficient use of natural resources."
And we can't help but ask the following question: How do we know whether all the SDG activities generate sustainable development? With the United Nations on the verge of adopting sustainable development as its central agenda, how do we know whether all the potential activities on the 169 goals are adding up to sustainable development?
Dr. Jennie Moore,
Director, Sustainable Development and Environment Stewardship
British Columbia Institute of Technology
School of Construction and the Environment
In 2006, the British Columbia Institute of Technology (BCIT) became the first post-secondary educational institution to join Global Footprint Network’s partner network, which now numbers 76 institutions applying the Ecological Footprint methodology around the world. Dr. Jennie Moore, director of sustainable development and environmental stewardship at BCIT’s School of Construction and the Environment, has led the charge, applying Footprint science to make real policy changes for the Vancouver city government.
Media outlets around the world helped share the news of Earth Overshoot Day this year, and thanks to countless partners and supporters, a conversation about our planet’s ecological deficit also took off on social media.
Earth Overshoot Day is an annual observance meant to bring attention to the risks of humanity’s growing ecological deficit. This year, August 19 marked the date when humanity exhausted nature’s budget for the entire year.
Highlights of Earth Overshoot Day 2014 media coverage included articles in Le Monde in France, El Mundo in Spain, and the Brasil Post in Brazil. Earth Overshoot Day also made the front page of La Stampa in Italy for the second year in a row. An online article in The Guardian in the UK generated 92 comments. In Switzerland, a Q&A with Bruno Oberle, director of the Swiss Ministry of Environment, was featured on the ministry’s website.
As of this week, we are in overshoot. Humanity has exhausted nature’s budget for the year.
August 20 was Earth Overshoot Day 2013, the approximate date humanity’s ecological resource consumption exceeded what Earth can renew this year. A mere 34 weeks into 2013, we demanded a level of ecological resources and services — from food and raw materials to sequestering carbon dioxide from fossil fuel emissions — equivalent to what Earth can regenerate for all of 2013.
For the rest of the year, we are operating in ecological overshoot. We will maintain our ecological deficit by depleting stocks of fish, trees and other resources, and accumulating waste such as carbon dioxide in the atmosphere and oceans. As our level of consumption, or “spending,” grows, the interest we are paying on this mounting ecological debt — shrinking forests, biodiversity loss, fisheries collapse, food shortages, degraded land productivity and the build-up of carbon dioxide in our atmosphere and oceans — not only burdens the environment but also undermines our economies. Climate change — a result of greenhouse gases being emitted faster than they can be absorbed by forests and oceans — is the most widespread impact of ecological overspending.
Earth Overshoot Day is an annual observance meant to bring attention to the risks of humanity’s growing ecological deficit. Making better choices will better ensure that we can reverse trends and move toward a sustainable future; measuring how much nature we have, how much we use and how much we need will help us make those choices. This year, due in no small part to the critical support of our partners and supporters, that message resonated around the world.
Major world media reported on Earth Overshoot Day 2013. The front page of the print version of the Italian daily newspaper La Stampa featured our infographic of ecological debtor countries as its Page 1 centerpiece. France’s Le Monde and Brazil’s Folha de S. Paulo ran articles explaining Overshoot Day calculations and the implications of humanity’s increasing Ecological Footprint. Mexico’s El Universal, the UK’s Daily Mail, Switzerland’s Tages-Anzeiger, the U.S. magazine Popular Science and the Brazilian science journal Galileu, among many others, also had their own stories, while Agence France-Presse (AFP) reported the story for Liberation and Le Figaro newspapers (both France), FOX News, the Japan Times, Manila Times, Voice Russia and other media outlets. Television and radio — such as the multilingual Euronews television network, CBS radio, Swiss radio, and broadcasters in Ireland, Uruguay, Mexico, Quebec, Germany, the Netherlands and elsewhere — carried either live interviews or taped stories on Earth Overshoot Day.
As media reportage provided the context, op-ed and commentary addressed strategies for living in a resource constrained world. Andrew Simms, originator of the Earth Overshoot Day concept and chief analyst at Global Witness, made the case for living within our means in The Guardian (UK). Carter Roberts, President and CEO of WWF-US, urged businesses to “begin producing more with less” in Foreign Affairs. “We have only a 15 to 20-year window in which to turn the tide,” Alessandro Galli, Global Footprint Network Mediterranean-MENA Regional Director, wrote in the Edinburgh Evening News.
This year’s print, airtime and online media and blog space devoted to Earth Overshoot Day were the best yet. And social media was ablaze. Facebook comments and reposts and Twitter #OvershootDay and #EcologicalOvershoot tweets and retweets climbed steadily. WWF’s concurrent #oshoot Vine and Thunderclap campaigns rolled across Twitter to create a collective shout about humanity already exceeding this year’s ecological resource limits.
Other partners such as INKOTA in Berlin, Germany and Swiss Clean Tech in Bern, Switzerland held events to commemorate the day. We heard from many followers as well, including a community college teacher who used Global Footprint Network’s individual Ecological Footprint calculator as a way to introduce her students to ecological resource limits on the semester’s first day of her “Humans and the Environment” course.
Thank you all for your dedication to raise awareness about this annual mark of humanity’s ecological overspending. We look forward to the day when we can celebrate our success together in reversing current trends and moving toward a world that works for everyone.