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TheCorporateCounsel

TheCorporateCounsel.net

A basis for research and practical guidance focusing on federal securities laws, compliance & corporate governance.

DealLawyers

DealLawyers.com

An educational service that provides practical guidance on legal issues involving public and private mergers & acquisitions, joint ventures, private equity – and much more.

CompensationStandards

CompensationStandards.com

The “one stop” resource for information about responsible executive compensation practices & disclosure.

Section16.net

Section16.net

Widely recognized as the premier online research platform providing practical guidance on issues involving Section 16 of the Securities Exchange Act of 1934 and all of its related rules.

PracticalESG

PracticalESG.com

Keeping you in-the-know on environmental, social and governance developments

It seems like E, S and G go together like peas and carrots (channeling Forest Gump). But that may not necessarily be the case. There are more instances where companies make decisions as though it is E versus S.

Here’s some news from WhiskeyRiff – not a publication you would expect us to cover:

“Jack Daniel’s would provide the corn slop byproduct that resulted from their whiskey production at little to no cost to farmers in what was called the Cow Feeder Program. The distillery was able to easily get rid of waste (farmers would come pick it up and haul it off), and Tennessee farmers would have a cheap way to feed their livestock.

But that’s all unfortunately coming to an end on March 31 of next year.

That’s because Jack Daniel’s Distillery has decided to enter into a partnership with Three Rivers Energy. In order to meet environmental benchmarks, they’ve developed what’s called an ‘anaerobic digester facility’ that will help turn the ‘slop’ into fertilizer and renewable gas. That means that all the ‘slop’ that used to go to local farmers for free will now have to be fed into the digester facility instead.

And unfortunately, that is devastating news for farmers who rely on the slop to feed their cattle.”

Some say all issues are local; here is a case in point.  As Brown-Forman, the corporate owner of the Jack Daniel’s brand, pursues climate goals from a global perspective, the company’s decisions cause negative impacts for the local farmers and economy. Brown-Forman isn’t alone in these conflicts, but must every such decision be a zero sum game? Was it possible for Jack Daniel’s to send 50% of their corn slop to both places, partially solving two problems rather that “wholly” solving one and abandoning the other?

Companies may need to change their mindsets to helping partially solve multiple sustainability problems/facets rather than “one problem, one solution” thinking.

Members can read more about managing supply chain ESG risks here.

If you’re not already a member, sign up now and take advantage of our no-risk “100-Day Promise” – during the first 100 days as an activated member, you may cancel for any reason and receive a full refund. But it will probably pay for itself before then. Members also save hours of research and reading time each week by using our filtered and curated library of ESG/sustainability resources covering over 100 sustainability subject areas – updated daily with practical and credible information compiled without the use of AI.

Are you a client of one of our Partners – SourceIntelligence, TRC, Kumi, Ecolumix, Elm Consulting Group International or Impakt IQ? Contact them for exclusive pricing packages for PracticalESG.

Practical Guidance for Companies, Curated for Clarity.

Photo credit: Joseph Hendrickson – stock.adobe.com

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The Editor

Lawrence Heim has been practicing in the field of ESG management for 40 years. He began his career as a legal assistant in the Environmental Practice of Vinson & Elkins working for a partner who is nationally recognized and an adjunct professor of environmental law at the University of Texas Law School. He moved into technical environmental consulting with ENSR Consulting & Engineering at the height of environmental regulatory development, working across a range of disciplines. He was one of… View Profile