Although sustainability has invariably moved to the top of the corporate agenda across various sectors, businesses still face challenges in effectively implementing these transformative changes. Photo via Getty Images

Amid remarkable fund allocation towards tackling environmental, social, and corporate governance issues, investors deeply concerned about climate change exert substantial leverage on firms and regulators to make reforms.

Furthermore, the Securities and Exchange Commission has proposed new rules requiring all publicly listed corporations to disclose climate change risks in their regular filings with clear reporting obligations, such as information on direct greenhouse gas emissions (Scope 1), indirect emissions from purchased electricity or other forms of energy (Scope 2), as well as GHG emissions from upstream and downstream activities in the value chain (Scope 3).

Although sustainability has invariably moved to the top of the corporate agenda across various sectors, businesses still face challenges in effectively implementing these transformative changes. Many companies are still dealing with questions like:

  • What problems and possibilities should they prioritize?
  • Where should they devote time, effort, and money to have the most long term effect via business processes?
  • What principles, policies, and internal standards should be implemented to initiate the process and get good ESG ratings?
  • When do corporate sustainability challenges necessitate collaborations with other businesses to meet commitments and achieve goals?
  • What organizational behavior and change management measures should be incorporated to induce sustainability into the corporate culture?

One-fifth of businesses still need a sustainability plan in place, and fewer than 30 percent feel the effect of that strategy is evident to all employees.

Introducing climate-related practices across businesses and corporations takes time and effort. Since sustainability transformation initiatives span multiple business functions and units, whether they are helping or hurting the bottom line is often a fuzzy picture. It is not easy to quantify near-term profitable impacts directly emanating from sustainable strategies, disincentivizing many businesses from setting ambitious carbon reduction targets.

Businesses often struggle with what they intend to assess and what "good enough" performance looks like for the firm. Furthermore, sustainability performance reporting is infested with the inherent stakes of the legitimacy of data collection, defining the metrics and materiality, accountability to the stakeholders, the dynamism of the business environment, the complexity of reporting standards, and the risk of obsolescence of the tool.

For context, there are approximately 600 sustainability reporting standards, industry efforts, frameworks, and recommendations worldwide. Additionally, the one-directional data collection method used by the carbon market trading systems for scoring analyses often leads to intentional or unintentional greenwashing.

So then, what is the path forward?

An effective strategy would involve adopting a synergistic approach, just like the yin and the yang elements that embody balance and harmony on two distinct yet interconnected levels. The yin aspect, prevailing at the government level, would require a robust standardization of reporting frameworks via policymaking and regulations that can effectively implement suitable transformation engines for businesses. It will entail developing adaptable market mechanisms to successfully guide businesses and consumers to identify, plan, navigate, strategize, and execute greenhouse gas reduction initiatives. It will require answers to foundational questions like:

  • What tools and resources can help businesses improve their financial performance by reducing energy waste and energy costs?
  • How do manufacturers engage their suppliers in low-cost technical reviews to improve process lines, use materials more efficiently, and reduce waste?
  • How can waste management and recycling help a business by saving money, energy, and natural resources?

There is a dire need to standardize and consolidate the industry benchmarks and reporting frameworks against which businesses can assess their performance for climate action and potentially improve their bottom line by investing in appropriate carbon mitigation activities. This will create a fundamental shift in the mindset of corporates and raise the level of conversation from "Should we implement sustainable business frameworks?" to "How we could best implement sustainable frameworks for better ROI and an impactful bottom line?"

On the other hand, the yang element operates at the business or corporation level. Successful execution of sustainability strategies entails interweaving the sustainability thread into the business core across strategies and processes, operations and personnel, and products and services.

What is the business case for sustainability efforts? From operational cost savings to expansion in new markets, from enhanced brand equity to investor interest and share expansion, companies that incorporate robust and scalable sustainable practices have opportunities to unlock new sources of value capture and new markets that can deliver immediate financial rewards. Such measures will demonstrate the overall sustainability transformation's power and potentially provide money or cost savings to fund other components.

One way to do it is by introducing circular business models to reshape the whole product usage cycle: re-engineering product designs with more sustainable materials, redesigning the manufacturing lifecycle, recycling products, packaging, and waste, and reducing emissions in transportation, water, and energy consumption activities. By leveraging technology and AI in the extended system of interactions within and outside the business, companies can monitor, predict, and reduce the carbon emissions in their supply chains and yield immediate financial results.

Designing, implementing, and managing the foundational governance of sustainable business practices, strategies, structure, and tactics will require robust governance of sustainability efforts in all key business areas, including marketing, sales, product development, and finance. Additionally, organizational values, leadership initiative from the CEO and board level to the employees, and stakeholder interest are necessary to drive value for business policy. Involving employees in decision-making will help induce better commitment and accountability to implementing economic, social, environmental, and technologically sustainable interventions and initiatives.

Finally, businesses need to understand that they could truly develop long-term business success and shareholder value when they stop viewing sustainability from a compliance or ESG reporting lens. Long-term business success cannot be achieved solely by maximizing short-term profits but through market-oriented yet responsible behavior that automatically drives enhanced business bottom lines. This demands a collaborative partnership between policymakers, the private sector, nonprofit organizations, academia, and civic society to usher in economic growth, competitiveness, and consumer interest. This partnership is essential for environmental protection and social responsibility to ensure a sustainable future.

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Ruchi Gupta is a certified mentor and vice chair at SCORE Houston. This article originally ran on EnergyCapital.

Here's what to attend at virtual SXSW this year. Photo via SXSW.com

7 can't-miss events at virtual SXSW featuring Houston speakers

south by the bayou

Many Houstonians were hoping to be able head out to Austin next week for SXSW 2021, but now they don't have to venture out from behind their computer screens.

SXSW has pivoted to virtual this year, but the online schedule still features all the thought leadership as previous years. If you're looking to hop into innovation and tech conversations featuring Houstonians, check out these events across space, health care, energy, and more.

Tuesday — Leading the Global Energy Transition

The Greater Houston Partnership is hosting a series of thought-leadership discussions focused on the global energy transition. Join Houston House for interviews with some of the brightest minds in energy who are leading the global energy transition through corporate innovation, energy technology, ESG, and the future of workforce.

Editor's note: InnovationMap was the facilitator for some of the interviews.

Catch the event Tuesday, March 16, from 10 am to 1 pm.

Tuesday — The Climate Crisis & American Cities

Cities are succumbing the ravages of a rapidly changing climate more and more often. Once in a lifetime flooding events are more frequent, wildfires are raging with greater intensity, droughts are being prolonged, and the rising seas levels are imperiling coastal communities. Aside from the ecological and economic impact of climate change, the effects of climate change are being disproportionately felt by low-income communities of color.

Hear from mayors of America's largest cities — including Houston Mayor Sylvester Turner — on how they are approaching this crisis and what you can do to help fight climate change in your community.

Catch the event Tuesday, March 16, from 10:15 am to 11:10 am.

Tuesday — The Health Trust Gap and How to Fix It

While the term "Infodemic" has circulated widely during the pandemic, the spread of health related misinformation is not a new phenomenon rather one that has been exacerbated. Now more than ever before we are seeing a divide in behaviors and in humanity. So how do we begin to build trust in this breakdown of communication? What steps can and should individuals, governments, media and businesses play?

Moderator Dr. Natalia Peart of Houston-based Catalyst Innovation Group will explore these questions and more with her panel of experts.

Catch the event Tuesday, March 16, from 10:15 am to 11:10 am.

Wednesday — Building a Thriving and Diverse Innovation Ecosystem

The Greater Houston Partnership is hosting a series of thought-leadership discussions focused on the global energy transition. Join Houston House for interviews with leaders from across the region's startup ecosystem discuss how Houston has become a thriving hub for digital technology while fostering a culture of inclusive innovation.

Editor's note: InnovationMap was the facilitator for some of the interviews.

Catch the event Wednesday, March 17, from 10 am to 1 pm.

Wednesday: Digital Access: A New Social Determinant of Health

Children's hospitals and T-Mobile are partnering to discuss the growing digital divide and the emergence of a new social determinant of health; digital access. Technology and digital access can now play a significant role in a patient's ability to have equitable access to healthcare, education and many other areas of their life.

Jackie Ward, chief nursing officer at Texas Children's Hospital joins this discussion.

Catch the event Wednesday, March 17, from 3:30 to 3:55 pm.

Thursday — Who on Earth should Govern Space?

Who will make the rules once out of the Earth's orbit? Can any commercial space company attempt to colonize Mars? These are just the start-off questions for those with insatiable curiosity. Texas A&M University's president, the director of space flight policy at SpaceX and an expert on who owns artifacts discovered in space confer with an award-winning science journalist.

Catch the event Thursday, March 18, from 9 to 9:55 pm.

Friday — Pushing our Bodies and Minds Beyond the Limits

In 2020 people across the globe experienced extreme isolation and mental health challenges. A source of empathy and education was found beyond the globe, in the small group that have spent time in space. An astronaut and sports psychologist discuss similarities and challenges of keeping mental and physical health in top shape while in isolation.

Houston-based former astronaut Bonnie Dunbar will be in on the discussion.

Catch the event Friday, March 19, from from 3:30 to 3:55 pm or at the encore Saturday, March 20, at 10 to 10:55 am.

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Houston space companies land $150M NASA contract for vehicles and robots

space simulations

Houston-based MacLean Engineering and Applied Technology Services LLC, known as METECS, has received a five-year contract from NASA to develop simulations and software services for space-based vehicles and robots, with a maximum value of $150 million.

Two other Houston-area companies, Tietronix Software Inc. and Vedo Systems LLC, were assigned as subcontractors for the award.

"This award is a strong testament to NASA’s continued trust in the quality of our work and their confidence in our ongoing support of the human spaceflight program," John MacLean, president of METECS said in a release.

According to NASA, the awardees are tasked with providing:

  • Simulation and software services for space-based vehicle models and robotic manipulator systems
  • Human biomechanical representations for analysis and development of countermeasure devices
  • Guidance, navigation, and control of space-based vehicles for all flight phases
  • Space-based vehicle on-board computer systems simulations of flight software systems
  • Astronomical object surface interaction simulation of space-based vehicles
  • Graphics support for simulation visualization and engineering analysis
  • Ground-based and onboarding systems to support human-in-the-loop training

The contract is called Simulations and Advanced Software Services II (SASS II), and begins in October. This is the second time METECS has received the SASS award. The first also ran for five years and launched in 2020, according to USASpending.gov.

METECS specializes in simulation, software, robotics and systems analysis. It has previously supported NASA programs, including Orion, EHP, HLS, Lunar Gateway and Artemis. It also serves the energy, agriculture, education and construction sectors.

Tietronix Software has won numerous awards from NASA. Most recently, it won the NASA JSC Exceptional Software Award (2017). Some of its other customers include Houston Independent School District, Baylor College of Medicine, DARPA and Houston Methodist.

Video Systems offers software for implementing human-rated, AI and autonomous systems, as well as engineering services to address the needs of spaceflight and defense. The company has previously worked with NASA and METECS, as well as Axiom Space and defense contractor Lockheed Martin.

The three companies are headquartered near NASA’s Johnson Space Center in Houston.

Greentown Labs names Lawson Gow as its new Houston leader

head of hou

Greentown Labs has named Lawson Gow as its Head of Houston.

Gow is the founder of The Cannon, a coworking space with seven locations in the Houston area, with additional partner spaces. He also recently served as managing partner at Houston-based investment and advisory firm Helium Capital. Gow is the son of David Gow, founder of Energy Capital's parent company, Gow Media.

According to Greentown, Gow will "enhance the founder experience, cultivate strategic partnerships, and accelerate climatetech solutions" in his new role.

“I couldn’t be more excited to join Greentown at this critical moment for the energy transition,” Gow said in a news release. “Greentown has a fantastic track record of supporting entrepreneurs in Houston, Boston, and beyond, and I am eager to keep advancing our mission in the energy transition capital of the world.”

Gow has also held analyst, strategy and advising roles since graduating from Rice University.

“We are thrilled to welcome Lawson to our leadership team,” Georgina Campbell Flatter, CEO of Greentown Labs, added in the release. “Lawson has spent his career building community and championing entrepreneurs, and we look forward to him deepening Greentown’s support of climate and energy startups as our Head of Houston.”

Gow is the latest addition to a series of new hires at Greentown Labs following a leadership shakeup.

Flatter was named as the organization's new CEO in February, replacing Kevin Dutt, Greentown’s interim CEO, who replaced Kevin Knobloch after he announced that he would step down in July 2024 after less than a year in the role.

Greentown also named Naheed Malik its new CFO in January.

Timmeko Moore Love was named the first Houston general manager and senior vice president of Greentown Labs. According to LinkedIn, she left the role in January.

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This article originally appeared on our sister site, EnergyCapitalHTX.com.

Houston foundation grants $27M to support Texas chemistry research

fresh funding

Houston-based The Welch Foundation has doled out $27 million in its latest round of grants for chemical research, equipment and postdoctoral fellowships.

According to a June announcement, $25.5 million was allocated for the foundation's longstanding research grants, which provide $100,000 per year in funding for three years to full-time, regular tenure or tenure-track faculty members in Texas. The foundation made 85 grants to faculty at 16 Texas institutions for 2025, including:

  • Michael I. Jacobs, assistant professor in the chemistry and biochemistry department at Texas State University, who is investigating the structure and thermodynamics of intrinsically disordered proteins, which could "reveal clues about how life began," according to the foundation.
  • Kendra K. Frederick, assistant professor in the biophysics department at The University of Texas Southwestern Medical Center, who is studying a protein linked to Parkinson’s disease.
  • Jennifer S. Brodbelt, professor in chemistry at The University of Texas at Austin, who is testing a theory called full replica symmetry breaking (fullRSB) on glass-like materials, which has implications for complex systems in physics, chemistry and biology.

Additional funding will be allocated to the Welch Postdoctoral Fellows of the Life Sciences Research Foundation. The program provides three-year fellowships to recent PhD graduates to support clinical research careers in Texas. Two fellows from Rice University and Baylor University will receive $100,000 annually for three years.

The Welch Foundation also issued $975,000 through its equipment grant program to 13 institutions to help them develop "richer laboratory experience(s)." The universities matched funds of $352,346.

Since 1954, the Welch Foundation has contributed over $1.1 billion for Texas-nurtured advancements in chemistry through research grants, endowed chairs and other chemistry-related ventures. Last year, the foundation granted more than $40.5 million in academic research grants, equipment grants and fellowships.

“Through funding basic chemical research, we are actively investing in the future of humankind,” Adam Kuspa, president of The Welch Foundation, said the news release. “We are proud to support so many talented researchers across Texas and continue to be inspired by the important work they complete every day.”