Showing posts with label metrics. Show all posts
Showing posts with label metrics. Show all posts

The Power of Procurement to Reduce Both Emissions and Costs

Leveraging action across supply chains is a critical part of efforts to address the climate crisis.  We are seeing tremendous growth in companies investing in sustainability and these corporations are helping to drive the transition to a low-carbon economy. Reports demonstrate that this is both an indispensable strategy to manage risk and an important part of cost cutting efforts. The financial and environmental benefits include energy and resource efficiency.

According to a 2019 CDP/Carbon Trust global supply chain report, over the last decade some of the world's biggest purchasers have leveraged their buying power and demanded transparency from their suppliers. In the process they have cut carbon emissions by 633 million metric tons and saved an average of almost $20 billion annually.

The report is titled Cascading Commitments: Driving Upstream Action Through Supply Chain Engagement is derived from data disclosed through CDP by 5,562 suppliers representing a $3.3 trillion annual procurement spend. This includes companies like Bank of America, Dell, Kellogg Company, Unilever, and Walmart.

The report makes the point that big corporations have tremendous power to drive meaningful change. Disclosure is the first step and the number of suppliers disclosing to CDP has increased from 634 businesses in 2008 to 5,545 in 2018. Such disclosures help firms to identify weaknesses and opportunities in areas like climate mitigation, water conservation, and deforestation.

The CDP survey indicates that sustainability is a mainstream phenomenon. Almost three quarters of companies are or may soon select suppliers based on environmental considerations. In 2008, just 4 percent of the 27 major purchasing organizations said they were deselecting suppliers based on environmental performance. Today that number is 43 percent and and additional 30 percent are considering doing so.

In the last ten years the relevance of environmental factors in the contracting process has grown from less than 10 percent to almost two thirds (63%). More than 9 out of 10 indicate that they will do so in the future.

Sustainability Development Metrics: Indices, Approaches and Frameworks

Sustainability development metrics are aggregate measures that extend the concept of value beyond gross Domestic product (GDP). Commonly referred to as sustainability development indicators (SDI), these are measures of sustainability go beyond the generic concept.

Sustainability indicators, indices and reporting systems are of growing importance in both the public and private sectors. SDIs are seen as useful in a wide range of settings, by a wide range of actors this includes international and intergovernmental bodies; national governments and government departments; economic sectors; administrators of geographic or ecological regions; communities; nongovernmental organizations; and the private sector.

Here are some of the most prominent indices:

Human Development Index (HDI) of the United Nations Development Programme (UNDP);

The Ecological footprint of Global Footprint Network

The Environmental Sustainability Index (ESI)

Environmental Performance Index (EPI) reported under the World Economic Forum (WEF)

Genuine Progress Index (GPI) calculated at the national or sub-national level.

The Global Reporting Initiative Index

The Energy, Emergy and Sustainability Index (SI)

Environmental Sustainability Index

The Lempert-Nguyen indicator

Here is a listing of different approaches:

The Natural Step approach

The Ecological footprint approach

The Anthropological-cultural approach

The Circles of Sustainability approach

World Business Council for Sustainable Development approach

The Life-cycle assessment approach

Sustainable enterprise approach

Sustainable livelihoods approach

Development sustainability" approaches

Here are some other sustainability metric frameworks:

The International Institute for Sustainable Development sample policy framework

The Sustainability dashboard

UN Food and Agriculture Organisation (FAO) types of sustainability

The Food and Agriculture Organisation (FAO) has identified considerations for technical cooperation that affect three types of sustainability:

Institutional sustainability.
Economic and financial sustainability.
Ecological sustainability.

Some ecologists have emphasized a fourth type of sustainability:

Energetic sustainability.

One ancillary measure that is gaining growing support is the green GDP that would factor the cost of pollution and natural capital depletion.

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New Sustainability Metrics from KoAnn Skrzyniarz

Businesses are extending their metrics beyond the measurement of profit to other forms of value of creation. The new sustainability imperatives demands that we include new metrics. In response to both consumers and supply chain pressures businesses are under pressure to provide metrics that measure their sustainability efforts. While these metrics measure more than just profit, they are closely tied to financial performance and creating a competitive advantage.

Here are five new metrics from KoAnn Skrzyniarz. She is the originator of sustainable brands and Sustainable Life Media. She is one of the world's leading innovators in sustainability metrics. She explores ways of measuring new forms of environmental and social value.

Sustainable Life Media measures what they call a “wellbeing economy” -- or "WeFirst" capitalism, an economy whose measures of success would support and encourage rather than impede business innovation that generates broader societal benefit and the creation of shared value.

Such value can be understood as poverty elimination, collaboration, and environmental restoration and maintenance. Their efforts are premised on the goal of finding ways to grow revenues from sustainable activities that decouple growth from impact and deliver shared benefit to society in all sorts of creative ways.

As explored in a Forbes article by Sarah McKinney, Skrzyniarz champions better collaboration, and standardization through the use of key metrics as a way to help companies on their sustainability journeys.

Here are five new metrics:

1. Life Cycle Assessment is a technique used to assess environmental impacts associated with all the stages of a product’s life from-cradle-to-grave (i.e., from raw material extraction through materials processing, manufacture, distribution, use, repair and maintenance, and disposal or recycling).

2. ISO 14000 is a family of standards related to environmental management that exists to help organizations (a) minimize how their operations negatively affect the environment (i.e., cause adverse changes to air, water, or land), (b) comply with applicable laws, regulations, and other environmentally oriented requirements, and (c) continually improve in the above.

3. The Higg Index is an apparel and footwear industry self-assessment standard for assessing environmental and social sustainability throughout the supply chain. Launched in 2012, it was developed by the Sustainable Apparel Coalition.

4. B Corporation Certification is a private certification issued to for-profit companies by B Lab, a United States-based non-profit organization. To be granted and to preserve certification, companies must receive a minimum score on an online assessment for “social and environmental performance”, satisfy the requirement that the company integrate B Lab commitments to stakeholders into company governing documents, and pay an annual fee.

5. STARS is a transparent, self-reporting framework for colleges and universities to measure their sustainability performance, created by the organization AASHE.

Sustainability metrics are still young and we can expect a whole range of new measurements of value going forward. This will include measurements that gauge replenishing our natural resources, supporting the economic stability of local economies and encouraging the health and wellness of society.

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Sustainability Development Metrics: Indices, Approaches and Frameworks
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Is Sustainability Still Possible?
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Event - New Metrics 14 Conference

The fourth annual New Metrics ’14 conference will take place September 24-26 in Boston, Massachusetts. In 2011 Sustainable Brands launched its first “New Metrics” conference, initially partnering with Wharton’s IGEL program to host the conference. This year they are collaborating with MIT’s Sloan School of Business to bring together an audience of 300 brand leaders to be in dialogue with 60+ thought leaders from well-respected brands, NGOs and think tanks who will speak about how they’re working to create a path toward smarter, more accurate and more inclusive business metrics.

As explained by KoAnn Skrzyniarz, "Profit, revenue and margin growth will tell you plenty about the success of your business, but in today’s economy, they won’t provide insight into how business is positioned to operate against the broader trends that are influencing longer-term survival. Updating business models and metrics that enable social, economic and environmental resiliency in the 21st century will ensure the ability to thrive for the long term."

For more information and to register click here.

Related
Sustainability Development Metrics: Indices, Approaches and Frameworks
New Sustainability Metrics from KoAnn Skrzyniarz
e-book - Metrics for Environmental Health and Sustainability
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White Paper - Redefining Value: The New Metrics of Sustainable Business
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PPR Home's Sustainability Journey: Innovative Metrics Shed Light

e-book - Metrics for Environmental Health and Sustainability

Effective operational metrics are an essential part of benchmarking and measuring progress. This e-book helps you to select the appropriate metrics across environment health and safety, sustainability, quality and more. Produced by LNS Research, in conjunction with MESA International, this e-book contains the detailed findings of the five-month, 2013-2014 Manufacturing Metrics that Matter research project.

This information-packed eBook answers many of the questions on business leaders’ minds today, including:

  • Which metrics are being used to best understand operational improvements today? 
  • How does technology support and impact metrics programs and performance? 
  • Which metrics are being utilized as part of role-based dashboards? 
  • What are the best practices I can learn from market leaders?

To download the e-book click here.

Related
Sustainability Development Metrics: Indices, Approaches and Frameworks
New Sustainability Metrics from KoAnn Skrzyniarz
KoAnn Skrzyniarz: A Leader in Sustainable Brand Innovation
White Paper - Redefining Value: The New Metrics of Sustainable Business
Evolving Metrics for Corporate Sustainability: Beyond Waste, Water and Energy
Is Sustainability Still Possible?
Ten Sources of Green Supply Chain Information
PPR Home's Sustainability Journey: Innovative Metrics Shed Light

Event - The Future of Capitalism: New Metrics, New Models, New Outcomes

This TSSS Event will take place on Tuesday, March 4th and a follow up webinar will be aired on Thursday, March 20th. The event will be hosted by Mark Anielski, a leading expert on the emerging metric of well-being (the new bottom line). The followup webinar will dive deeper into the issues. The Future of Capitalism: New Metrics, New Models, New Outcomes by Mark Anielski will ask the question, "Are you ready to compete in an economic system that rewards shared values, well being and inclusive prosperity?"

For more information click here.

Related
Sustainability Development Metrics: Indices, Approaches and Frameworks
New Sustainability Metrics from KoAnn Skrzyniarz
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White Paper - Redefining Value: The New Metrics of Sustainable Business
Evolving Metrics for Corporate Sustainability: Beyond Waste, Water and Energy
Is Sustainability Still Possible?
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Event - The Future of Capitalism: New Metrics, New Models, New Outcomes

The Future of Capitalism will take place on Tuesday, March 4, 2014 from 4:30 pm to 7:30 pm, at Loyalty One, 438 University Ave., 12th Floor, Toronto, Canada. This event is subtitled, "New Metrics, New Models, New Outcomes." It will address strategies for the new economy and competing in an economic system that rewards shared values, well being and inclusive prosperity. Attendees at this event will hear from Mark Anielski, one of the world's leading experts on the emerging metric of well-being...the new bottom line.

Anielski is the author of "The Economics of Happiness:Building Genuine Wealth" and advisor to the Prime Minister of Bhutan, will share with us how progressive companies are getting ahead of the curve and optimizing their most important assets - trust and relational capital.

Two important questions

1.Has Capitalism lost its way?
2. Can it survive or will it be replaced?

What will be covered

What's wrong with Capitalism? Does it have a future?
What we can learn from Bhutan - the happiest country in the world
Why was the topic of Inclusive Prosperity so prominent at Davos
How companies like PUMA and Unilever are positioning themselves for the future by expanding their metrics to include well-being
How progressive companies are optimizing their most important assets: trust and relational capital

Agenda

4:30 – 5:00 pm: Registration, snacks and networking
5:00 – 5:10 pm: Introductions and special announcements
5:10 – 5:40 pm: Presentation by Mark Anielski, author of “The Economics of Happiness”
5:40 – 6:00 pm: Small group discussion/brainstorming
6:00: – 6:40 pm: Groups report back to main audience and general Q and A
6:40 – 7:30 pm: Networking and snacks

Space is limited and registration closes February 27.

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Sustainability Development Metrics: Indices, Approaches and Frameworks
New Sustainability Metrics from KoAnn Skrzyniarz
KoAnn Skrzyniarz: A Leader in Sustainable Brand Innovation
White Paper - Redefining Value: The New Metrics of Sustainable Business
Evolving Metrics for Corporate Sustainability: Beyond Waste, Water and Energy
Is Sustainability Still Possible?
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Event - The New Metrics of Sustainable Business Conference 2013

The New Metrics in Sustainable Business event will take place on September 24 and 25, 2013 in Philadelphia, Pennsylvania. Explore the future of sustainable business metrics at the Sustainable Brands event. Learn from over 60 current change agents. More than 30 plenaries and breakout discussions including up to the minute trends, drivers and examples of the most successful ways businesses are creating and capturing entirely new forms of value, or quantifying previously-ignored existing economic, social and environmental impacts.

As the definition of value continues to evolve, the demand for business to demonstrate its ability to create value of various forms for all stakeholders – and not just profit for shareholders – is increasing, and the question of how this value is identified, measured and communicated becomes paramount. This 2-day, in-depth discussion with some of sustainability's top minds will examine leading-edge work that is expanding the way business creates, quantifies, and manages the value it delivers through the metrics it adopts.

The conference will explore the latest advances in capturing traditionally ignored social and environmental risks throughout the value chain, opportunities in creating and measuring shared value with all stakeholders in mind, the very tangible value of human capital and employee engagement, as well as the increasingly sophisticated science of assessing natural capital. We will check in for the latest on competing sustainability performance and reporting standards, and launch a search for new metrics on trust, reputation and 21st century brand value.

The conference will also examine new forms of value, or newly-quantified existing economic, social and environmental impacts, on three fundamental levels:

•Product & Service Value: New forms of value delivered through innovation for sustainability on the product or service level, as well as updates in environmental and social impact assessment methodologies. Key topics include life cycle assessment, certification, labeling, supply chain tracking, and consumer-facing communication of complex data.

•Organizational Value: New metrics reflecting company-level performance assessment and valuation, featuring the latest in sustainability reporting, ratings and rankings allowing comparisons across organizations, measures of employee contribution, and studies of 'green' brand value.

•Societal Value: A look at how business creates shared value for communities, cities and entire countries throughout its supply chain, with an eye toward new methods for exchanging economic value and robust measures of happiness.

For the conference program or to register click here.

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ISO Revisions Seek Overarching Guidance on 14001 Environmental Management Systems and Other ISO Standards

Revisions are being undertaken in ISO 14001 in order to create an overarching format in conformity with Annex SL (previously ISO Guide 83) which defines the framework for a generic management system. This new guidance is holistic and is intended to end conflicts, duplication, confusion and misunderstanding from different MSS management systems. Since being issued in 1996 and then revised in 2004, the ISO 14001 Environmental Management Systems standard has been adopted by more than 250,000 organizations around the world.

Annex SL, is described as a “high level structure and identical text for management system standards and common core management system terms and definitions.” Annex SL offers overarching guidance on ISO management system standards (MSS). It is intended to help explain how different standards fit together with minimum redundancy. Annex SL offers a common format, structure and core requirements for ISO 14001, ISO 9001, ISO 27001 and ISO 50001.

ISO's goal in revising its standards is to conform to Annex SL so that standards share a common format. However this is no easy feat as consensus is required from all 130 participating countries. All new ISO MSS will adhere to this framework and all current MSS will migrate at their next revision. In future all ISO MSS should be consistent and compatible.

The ISO Technical Committee (TC) 207 has started the process of revising ISO 14001, with a target of issuing a Final Version in 2015.

© 2013, Richard Matthews. All rights reserved.

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Webinar - Why GRI G4 Will Trigger New Directions In Sustainability Reporting

The Verdantix webinar, "Why GRI G4 Will Trigger New Directions In Sustainability Reporting," will take place on Thursday, May 30, 2013. In this complimentary webinar you will learn the new best practices for sustainability reporting and how to link mandatory reporting, voluntary frameworks and financial reporting.

Based on multiple Verdantix benchmarks covering stock exchanges, responsible supply chain assessments and a global survey of 250 heads of sustainability, this webinar helps heads of sustainability to chart out the best practices for sustainability reporting in a post GRI G4 world.

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Business Metrics at the 2011 Sustainable Brands Event

Explore the future of sustainable business metrics and measurement. This SB Issues in Focus one day event, in partnership with The Wharton School, looks at the retooling of key business metrics to optimize business for sustainable success in the 21st Century. Join other financial and non-financial managers seeking knowledge in the progression of work that measures and values both positive and negative environmental and social impacts of business activity. Industry leaders will collaborate on issues such as valuing eco-system services, moving environmental impact onto the balance sheet, and putting goals in context. October 24, 2011 in Philadelphia, PA.

One of the most compelling challenges of our time involves reassessing paths to value creation and sustainable business success. Underpinning the successful transformation of business is a need to identify a new set of metrics by which value is measured. By doing so we can put business in a better position to set strategy and goals that dependably support both near term success and long term continuity.

Produced by Sustainable Life Media in partnership with The Wharton School, University of Pennsylvania's IGEL (Initiative for Global Environment Leadership), this 1 day SB: Issues in Focus Conference will explore the forward edge of thinking and progression of work taking place on measurement and valuation of both positive and negative environmental and social impacts of business activity. Various key initiatives will be presented and time will be devoted for interactive and thought provoking discussion throughout the day.

Questions that will be addressed include:
  • How can your environmental and social impact activities be set in the context of what would constitute true sustainability of your activities?
  • What kind of shareholder value is, or might be created from your sustainability efforts?
  • What kinds of metrics or scorecards are taking shape to help you measure the various aspects of your environmental impact (organization, product, supply chain, whole industry, etc.)
  • Are you properly accounting for all your assets, or are there some investments that might be moved from expense to asset class on the balance sheet?
Confirmed and considered speakers include:

Valuing Eco-System Services: Inside the Dow/Nature Conservancy Partnership. Neil Hawkins, VP of Sustainability and EH&S at Dow Chemical Company and Glenn Prickett, Chief External Affairs Officer, The Nature Conservancy

Moving Environmental Impact onto the Balance Sheet: Another Take Puma, with PriceWaterhouseCoopers

Context-Based Metrics: Taking Sustainability Literally. Mark McElroy, PhD, Executive Director, Center for Sustainable Organizations and leading researcher in context based metrics

Human Value Added: People as an Asset on the Balance Sheet. Wharton 1989 Alum Paul Herman, investment advisor and author, The HIP (Human Impact & Profit) Investor in conversation with Pioneer InfoSys about "human resource valuation"

Poverty Footprinting: Valuing Business Contribution to Development. Kyle Cahill, Oxfam and brand partner

Sustainability, Reputation and ROI – Modeling the Business Value of Sustainability Driven Reputation Enhancements. Pamela Cohen, PhD, University of Chicago and others

Modeling Shared Value of Industry Collaboration. John O'Connor, VP Sustainability Research, Gaia Metrics (formerly, World Bank, IMF)

Integrating Sustainability and Financial Analysis into Investor Relations. Dave Stangis, VP Corporate Social Responsibility, Campbell Soup Company

Beyond GDP: The Happiness Index. Jules Peck, The New Economic Foundation, UK

To register or to learn more about the innovative ways businesses are re-defining value and measuring their impact click here. When registering get a 20% discount by using the code: "3pnwsbm"

© 2011, Richard Matthews. All rights reserved.

Best Practices for Communicating Sustainability

Businesses need to understand how to communicate sustainability in a way that not only conveys environmental initiatives, but enhances the internal and external brand.

As reviewed in previous posts, sustainability provides innovative opportunities to reduce costs and reap long-term benefits while also increasing employee morale and commitment to the organization.

However, communicating sustainability is about more than information. Effective communications change behavior, while information alone does not always lead to action.

Effectively communicating sustainability is about attractive campaigns that make sustainable lifestyles fashionable and cool without being superficial. Marketing support including a logo, advertising, video and presentations can also help to communicate sustainability.

Effective strategies for sustainable communications involve clearly defining the target audiences and developing a corresponding message. The message objectives need to be concrete, clear, realistic and achievable. It is often better to focus on a single issue rather than numerous different points.

Decide how these objectives will be achieved by developing message(s) and defining channel(s). Do not overload an audience with information; maintain a common theme throughout all the aspects of the campaign. Identify how the particular audience prefers to receive information; consider how social networks could be used to communicate the message.

Conduct audience research using focus groups or telephone surveys. Find out what motivates the target audience, determine what they read, watch and listen to.

Perform a SLEPT Analysis (Social, Legal, Environmental, Political and Technical issues) that might affect the campaign.

To assist with planning and implementation, develop a timeline that identifies communications milestones. Set up a green team steering group, as well as a campaign coordinator.

Continually measure and evaluate the communications. Establish what will be measured and how. Seek audience feedback, then document and report this evaluation. Make the plan and the assessment metrics readily accessible to team members and update them as needed.

Tailor all sustainable communications to the culture in which they are being launched. For a useful guide to communicating sustainability see the publication by Futerra and UNEP.
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Best Practices for Sustainable Businesses

A sustainable best practices program involves a comprehensive and holistic approach that encompasses everything a business does that impacts the environment. A best practices program assists companies in making systematic changes in areas like emissions, energy, transportation, water and waste.

A sustainability initiative involves the development and implementation of green ideas and goals. Crucial to this process is the development of metrics that track and monitor performance. Also important is the identification and response to challenges, opportunities and threats.

Some well known evironmental guides and certification systems include the GRI G3 Guidelines , ISO 14001:2004 and ISO 14004:2004 . Most sustainable best practices programs address at least six key areas. Here is an alphebtical summary of the basic areas that are central to environmental sustainability.

Green Team

Assemble a company green team that will serve as the sustainability steering committee. This dedicated team is important to making and maintaining sustainable changes. The green team should have representatives from different departments. Policies should be written for the employee manual on energy, water, waste, transportation and pollution prevention. The green team is in charge of the development and implementation of these policies.

Emissions and Indoor Air Quality

Record and manage emissions, set targets for emissions reductions. Review physical infrasructure, building materials and furnishings. Source materials that have less impact on indoor air quality (Use carpets, furniture, paints, adhesives and cleaning products that are associated with less noxious outgassing).

Energy Efficiency

Monitor and manage energy consumption. Implement energy efficiency program including energy reduction targets for IT, manufacturing, lighting, heating and cooling.

Transportation Efficiency

Track the mileage of all company vehicles and work on finding more expedient travel routes. Employ more fuel efficient modes of transport including hybrid and fully electric vehicles.

Water Reduction Strategies

Monitor water consumption and develop strategies for water reduction. Effective strategies can begin with something as simple as retrofitted faucets with low-flow aerators.

Waste Reduction and Recycling

Log waste and develop a strategy for waste reduction and recycling. Summarize the waste stream and identify targets for waste reduction. Develop a recycling program with a good plan including logistics that detail how recycled materials will be collected and stored.
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