Assembly creates business sustainability designation

Rhode Island State House

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The General Assembly today approved legislation sponsored by Rep. Deborah Ruggiero and Sen. James A. Seveney to encourage Rhode Island businesses to adopt stronger environmental standards on sustainability. The bill now goes to the governor.

The legislation would create a voluntary, flexible program that would allow businesses to earn a sustainability designation by creating their own set of benchmarks for operating sustainably, and publicly reporting annually on their efforts to adhere to them.

The sponsors said the bill will encourage more sustainable business practices while also helping businesses communicate with the public about their efforts.

“Sustainability and social responsibility aren’t just buzzwords. They’re now business practices that provide long-term growth, profit, environmental and societal benefits. Sustainability for a business can range from replacing inefficient lighting, sealing air leaks, recycling, replacing water mains for efficiency, and using safer less toxic cleaning products. This bill provides an avenue for 21st century businesses to attract young employees, new customers, and investors by developing sustainable standards and metrics. It’s voluntary, but a real opportunity for a business to become a meaningful brand leader,” said Representative Ruggiero (D-Dist. 74, Jamestown, Middletown).  

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Under the Transparency and Sustainability Standards for Rhode Island Businesses Act (2019-H 5145A2019-S 0395A), a Rhode Island company may adopt a set of sustainability standards and a set of measures for assessing their effort to adhere to them. The Secretary of State would issue a certificate of adoption of transparency and sustainability standards to those companies that do so, and post their standards and annual reports online.

The program would be totally voluntary, and would allow each company to determine what its own efforts will entail, since best practices will vary from industry to industry. But since the bill would require participating businesses to publicly post their plans online, as well as their reports on their efforts to adhere to them, anyone interested in finding out how the company is improving its sustainability would easily be able to learn.

“Many customers want to do business with companies that are making an effort to be more environmentally conscious. This is an opportunity for many businesses that have been working hard on sustainability to showcase those efforts, and transparently tell their customers and prospective employees just what they are doing to reduce their environmental impact,” said Senator Seveney (D-Dist. 11, Portsmouth, Bristol, Tiverton).

The legislation was developed over a year and a half with help from the Rhode Island Manufacturers Association and environmental advocates. Delaware’s legislators approved a similar initiative last year.

“The Rhode Island Manufacturers Association is a strong advocate for the concept of sustainability,” said David M. Chenevert, executive director of the Rhode Island Manufacturers Association. “As an industry, manufacturers want to let our customers, employees and investors know that we are concerned about climate change and environmental issues. Rhode Island Manufacturers support the Sustainability and Transparency Standard for Rhode Island Business Act. We all play a role in sustainability and we want to make Rhode Island a better place to live and this is a step in the right direction.”  

Said Kevin O’Neill, chairman of Rhode Island Business Climate Leaders, “This is a great opportunity for a Rhode Island business — whether large, small, manufacturer or service provider — to show their commitment to sustainability. The public standards that the business sets and how they plan to follow them invites a favorable comparison in the industry.”

O’Neill is the owner of The Conference Exchange, a Cumberland-based software company with over 50 employees, and he vowed to participate when the law is enacted.

The legislation is cosponsored in the House by House Majority Leader K. Joseph Shekarchi (D-Dist. 23, Warwick), Rep. Alex D. Marszalkowski (D-Dist. 52, Cumberland), Rep. Christopher R. Blazejewski (D-Dist. 2, Providence) and Rep. Robert E. Craven (D-Dist. 32, North Kingstown). Senate cosponsors include Sen. Louis P. DiPalma (D-Dist. 12, Middletown, Newport, Little Compton, Tiverton), Sen. Cynthia A. Coyne (D-Dist. 32, Barrington, Bristol, East Providence) and Sen. Dawn Euer (D-Dist. 13, Newport, Jamestown).