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GE’s Ecomagination Lacks Eco and Imagination

[fa icon="calendar'] Mar 12, 2014 9:00:09 AM / by Carol Pierson Holding

By Carol Pierson Holding

Remember back in 2005 when General Electric (GE) launched its Ecomagination contaminated tap waterinitiative? Its purpose, as the liberal news site Grist put it at the time, was “to ramp up development of clean technologies and lighten the company’s Goliath-like environmental footprint.” A noble effort indeed.

Many of the products highlighted in the Ecomagination launch were focused on renewable energy, such as wind turbines and solar voltaic panels. GE’s CEO Jeffrey Immelt announced major investments in eco-friendlier technologies, pledging to double GE’s research-and-development for Ecomagination to $1.5 billion in 2010.

World Resources Institute (WR) then-President Jonathan Lash called Immelt “not only a visionary, but in the absence of coherent national policies…just plain gutsy.” Lash even supported Ecomagination’s clean coal technologies: “Five years ago, I had to struggle to suppress my gag response to terms like ‘clean coal,’ but I’ve since faced the sobering reality that every two weeks China opens a new coal-fired power plant. There is huge environmental value in developing ways to mitigate these emissions.”

Despite many environmentalists insistence that there is no such thing as clean coal, Ecomagination believed it had a winner and sent its advertising staff off to promote it. The result was GE’s 2006 TV spot “GE’s Coal Miners.” In it, gorgeous half-clad male and female models with sweaty, soot-covered bodies pretend to toil in a coalmine…while a narrator intones about GE’s clean coal being beautiful.

It’s so shocking I thought it must be a parody (seriously, take a look), but its production values reveal the kind of wildly expensive commercial only a huge company can afford.

Today, climate change has ascended to the “worst problem facing the world today” as Senate Majority Leader Harry Reid said last week and coal’s heavy emissions are acknowledged as the climate’s number one enemy.

Who knew in 2005 that 10 years later, China would be the world’s largest solar market, even shutting down its existing coal plants. “Investments in new coal plants (in 2011) weren't even half the level they were in 2005” Justin Guay of the Sierra Club reported in Huffington Post.

In hindsight, Ecomagination’s focus on clean coal seems more delusional than visionary.

Immelt is still at the helm of GE. And the new Ecomagination is again straining credulity with environmentalists for so profoundly getting it wrong.

At least this time its not clean coal or, God forbid after Fukushima, nuclear power. No, this time Ecomagination is focused on natural gas.

Appropriately, I first saw the announcement of GE’s new Ecomagination initiative on the branding website BrandChannel, which headlined “GE Renews Ecomagination Initiative, Commits $25B to CleanTech R&D by 2020.”

Sounds like 2005 all over again.

It’s not that I begrudge the company for trying to make a buck. What gets me hot is that it’s using natural gas as a panacea for the eco set. Really? What we’ve been reading is that the methane leaked from natural gas drilling is worse – some say 20-100% worse - than the emissions released by burning coal. Fracking to release natural gas may cause earthquakes, taints water (remember the video of the farmer lighting his gas-contaminated tap water on fire?) and kills livestock.

Worst of all, natural gas delays the transition away from fossil fuels and into a survivable future at a critical moment.

But maybe GE’s message is designed for a different audience than environmentalists. Maybe Ecomagination is pure lobbying?

Friday’s New York Times editorial “Natural Gas as a Diplomatic Tool” makes that seem a possibility. The piece encourages the U.S. State Department to respond to the crisis in the Ukraine by opening natural gas exports to Europe, where they’re currently banned. The goal is to reduce Europe and the Ukraine’s dependence on Russian gas. Of course that would require “more facilities to liquefy and ship gas…that would cost billions of dollars.” And guess what business GE is in?

Now that’s amazing timing.

Photo is courtesy of http://bit.ly/1dNZNYH

Carol Pierson HoldingCarol Pierson Holding writes on environmental issues and social responsibility for policy and news publications, including the Carnegie Council's Policy Innovations, Harvard Business Review, San Francisco Chronicle, India Time, The Huffington Post and many other web sites. Her articles on corporate social responsibility can be found on CSRHub.com, a website that provides sustainability ratings data on 8,900+ companies worldwide. Carol holds degrees from Smith College and Harvard University.

CSRHub provides access to corporate social responsibility and sustainability ratings and information on 8,900+ companies from 135 industries in 103 countries. By aggregating and normalizing the information from 300+ data sources, CSRHub has created a broad, consistent rating system and a searchable database that links millions of rating elements back to their source. Managers, researchers and activists use CSRHub to benchmark company performance, learn how stakeholders evaluate company CSR practices and seek ways to change the world.

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Social Media: A New Tactic for Corporate Sustainability?

[fa icon="calendar'] Apr 11, 2012 6:00:00 AM / by CSRHub Blogging

By Kimberly Wilson


Social media has undeniably changed the corporate sustainability landscape as companies harness this technology for their sustainability programs. According to the SMI-Wizness Social Media Sustainability Index, in 2011 more companies used social platforms to communicate sustainability initiatives and to crowdsource ideas to resolve sustainability issues. A closer look into this trend suggests that it has only just begun.


The 2011 Social Media Sustainability Index, released by Social Media Influence and Wizness, reported that the number of companies in its index that use social media to communicate sustainability has more than doubled in the last year. In 2010, the report found 120 of the 287 companies in its index engaged in social media through platforms such as YouTube, Facebook, or Twitter, but only 60 companies dedicated resources to the mission. In 2011, 250 major corporations engaged in sustainability communications through social media and 100 companies committed resources to that goal.


The companies trailblazing the way include General Electric, IBM, and Pepsico, all of which made the top 10 list on the index. IBM’s Smarter Planet is a website devoted to communicating its sustainability initiatives and uses compelling storytelling that showcases its work around the world in communities and cities. Just look at its Facebook likes to see how popular it has become – 230,952 and counting.


Other companies like General Electric are using social media to crowdsource ideas to find innovative solutions to sustainability dilemmas. GE created the Ecomagination Challenge to find clean energy ideas in America and the winners received $200 million capital investment by GE and its partners. They also developed a strong editorial team to produce content to encourage participation.


While many companies turn to traditional social media platforms for their sustainability strategy, newer platforms are proving to be equally effective tool for companies. Starbucks brought its BetaCup Challenge to the Jovoto community, a website that crowdsources ideas from the public, in order to find a sustainable solution to the coffee cup. The website Causes, which hosted the famous, viral “Kony video,” has also been used by companies like AT&T to engage the public in its sustainability effort.


For many companies, social media does more than boost their sustainability profile, it is a necessary tool to manage their brand. Social media is a powerful way for consumers to speak out against corporate actions and for companies to engage with their dissenters. Companies that don't manage their brand perception on these platforms can quickly become a target of consumer backlash, like what BP experienced after the Gulf oil spill when a Facebook group "Boycott BP" formed and drummed-up 791,000 likes.


Now that companies have embraced social media for their sustainability initiatives, has it boosted their CSR performance? There may not be a direct correlation, however many of the leading companies on the Social Media Sustainability Index are performing better in general when compared with their peers on CSRHub, such as IBM which has an overall score of 66, higher than its industry average.


Whether or not social media will improve companies' CSR performance in the immediate future is still uncertain, but it certainly will be a driving force in how sustainability programs develop in the future. From what we've seen so far, it is likely that increasingly more companies will incorporate social media into their sustainability strategy in the future hoping to convert their consumers into loyal brand advocates.



Kimberly Wilson comes to CSRHub from Northwestern University where she recently completed her Master’s degree in business journalism. She began her career working in sustainable development at the International Finance Corporation as a marketing consultant. She went on to work at the Financial Times newspaper where she was involved with political and economic coverage. Kimberly has long been passionate about ways businesses can be leveraged to improve the world. This led her to volunteer in South Africa working with women who were microfinance recipients. In her downtime, she enjoys running along Lake Michigan, going to concerts, and weekend brunches in downtown Chicago. 


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