IHS provides economic, financial, and political information covering markets, companies, transactions, and geopolitics. The company supplies both content and analysis to a diverse customer base, including governments, multi-national corporations, technical professionals, and small companies.
The increase in environmental regulations as a response to resource scarcity presents an important challenge for businesses across all industries. Companies that offer products or services that facilitate adherence to environmental regulations or certifications could experience an expansion in business as demand for these services grows.
IHS offers a range of environmental impact solutions to businesses and governments. The company offers software applications for greenhouse gas management; chemical life-cycle management; air, water, and waste management; and sustainability tracking, management, and reporting. In addition, IHS offers guidance on greening chemical supply chains and compliance with environmental regulations. Through its information branch, IHS provides environmental impact information to companies in key industry sectors, such as the energy industry, in order to aid clients’ decision-making processes.
All companies, regardless of their industry classification, face increasing costs for key resources and services necessary for their operations such as electricity, waste disposal, transportation, and raw material procurement. Companies are increasingly being pressured to report on the environmental impact of their operations and establish initiatives to mitigate impact. According to the 2014 PricewaterhouseCoopers annual CEO Survey, 80% of CEOs interviewed believe it is important to measure and try to reduce their company’s environmental impact, an increase from 48% in 2013.1
In 2012, IHS introduced the Live Green framework as part of its internal sustainability strategy in order to promote environmental decision-making within the company. As part of the program, the company has increased the number of Leadership in Energy and Environmental Design certified offices in which it operates. It has also outsourced its largest external data center to a company that includes green initiatives in its operations. IHS has also established initiatives to reduce overall waste, increase recycling, improve efficiencies, and reduce costs related to waste services. As part of this effort the company has released metrics regarding its greenhouse gas emissions, waste output, electricity consumption, and water usage and has established specific targets to reduce its environmental impact in 2014.
Although IHSestablished general goals to reduce its environmental impact in 2014, these unfortunately do not include specific reduction targets for greenhouse gas emissions, water and energy consumption, or waste production. Portfolio 21 would like to see IHS establish both short- and long-term goals that establish quantitative reduction metrics.
To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 7/31/14 and may not reflect current opinions or subsequent events.