MGMT8420 Sustainable Management
Winter 2020
Final Course Assignment (Individual)
DUE DATE
Delivery Method
Friday, April 24th before midnight
Electronic Word x file assignment uploaded to eConestoga dropbox
Worth 30% of final grade for this course (60 marks)
Total MAX word count: 2500 words
Overview
This Final Course Assignment replaces the Final Exam and is to be completed individually, i.e. NO collaboration, copying or sharing. Turnitin is enabled, and any student found violating any of these prohibitions will receive an Academic Offence/Penalty. This assignment will assess your understanding and application of key course themes, topics and lessons. Adhere to each question’s word limit and apply course themes, as well as external research with APA formatted referencing in your answers.
Instructions
· Read through entire Assignment Instructions.
· Answer the questions listed below.
· *Be sure to draw on course themes and examples.* – do not GOOGLE your answers… this will result in a 0 for that particular question. Again, use course materials exclusively, to form your answers.
· Adhere to the word limits for each question.
· Include in-text citations as needed, and a reference section in APA format.
· Assignments with NO ATTEMPT to include APA formatted in-text citations and reference list will receive a grade of zero (0).
*Questions*
1. How is climate change both a threat and opportunity for global businesses? (5 marks)
a) Provide at least two specific examples for each (2 threats & 2 opportunities) on how climate change is influencing business operations.
· Word limit: 350 words.
2. The creator of the GDP concept, Simon Kuznets, cautioned society against its widespread use as a measure of prosperity. (5 marks)
a) What are some of the flaws of using GDP as the only measure of economic success?
b) What are some alternatives; and how do the alternatives encourage and support sustainable development?
· Word limit: 350 words.
3. Explain the process and three steps a company should go through as they operationalize and/or integrate sustainability into their organizations. (10 marks)
a) Describe each step, with real world business examples.
b) Identify some common mistakes organizations make that prevent them from achieving an integrated sustainable strategy.
· Word limit: 700 words
4. Choose ONE of the four sustainable development management programs: Energy Management Program, Water Management Program, Waste Management Program, or GHG Management Program: (10 marks)
a) Explain the Triple Bottom Line benefits for that specific management strategy.
b) Identify two specific activities/strategies business can use to promote/actualize that specific management strategy.
c) Suggest a reporting/guiding organization the business could use to assist with the disclosure and integration (ie. think EMS, GRI framework & standards…)
· Word limit: 700 words
5. With reference to at least TWO of the following theories: Tragedy of the Commons, Anne and Paul Ehrlich’s I=PAT Equation, Failure of ‘Free Market’ Environmentalism, or Lynn White Jr’s controversial theory grounded in Christian values: (5 marks)
a) Provide an overview of the fundamental causes of unsustainability and why sustainability is difficult to achieve.
· Word limit: 350 words
6. The journey to Natural Capitalism involves four major shifts in business practices, all vitally interlinked. (10 marks)
a) Explain and provide examples of how businesses can implement each of these Natural Capitalism practices.
· Word limit: 500 words
Submission
1. Report should have a Title Page with:
· Your Name and Student Number
· Course Identifier and Section #
· Title for the Submission
· Date of Submission
· Instructor Name
2. Answers to Questions:
· Number the questions 1-6 into your report. Provide the answer to all parts/sub-parts of the question, ensuring use of both external research (with in-text citations) as well as key course concepts and examples.
3. Reference List
· Complete Reference list at the end of your document in proper APA format. Minimum of 10 sources used.
4. Saving & Submitting your Assignment:
· File name: Your Name – Final Assignment x
· Upload your final submission in *Word x format *to the Final Course Assignment Dropbox.
Marking/Rubric (60 points, 30%)
Scoring Element ↓ |
Unacceptable 4/1 Points |
Needs Improvement 6/2 Points |
Meets Expectations 8/4 Points |
Exceeds Expectations 10/5 Points |
Question 1 – 6
#1
#2
#3 pts
#4
#5
#6 = 45 pts |
Answers are missing information or may be missing entirely Lack of enough research |
Answers may be missing information Some supporting research is used |
Answers are complete Effective use of supporting research |
Answers are complete and demonstrate a robust understanding of key terms and concepts, with research |
Overall/Format/Adhere to Assignment Instructions
Use of Key Course concepts Referenced completely and accurately (APA format)
= (45 + 15 pts = 60 pts) |
The report contains many spelling or punctuation errors, which makes the writing difficult to understand The answer is disorganized Lacks citations and/or a reference (automatic 0) |
The report contains minor errors, which make the writing difficult to understand The report is somewhat organized An effort to use citations and/or references |
Spelling and punctuation errors do not significantly affect the communication of ideas The report is organized Minor issues with citations and/or reference |
The report is nearly free of spelling and punctuation errors The report is well organized All citations are complete along with references |
A Note on Academic Integrity
“Written or other work which a student submits in a course shall be the product of his/her own efforts. Plagiarism, cheating, or other forms of academic dishonesty are prohibited. Cheating means the misrepresentation by the student of his/her performance in a college setting” (Conestoga College, 2018).
For more information on this policy, please go to the Academic Integrity Website at
http://lib.conestogac.on.ca/academic-integrity
Or come speak with me.
To avoid plagiarism, be sure to cite your sources using the APA style. Should you require further information and/or assistance using the APA style guide, please visit the Learning Commons, the Library in person or online at APA @ Conestoga. Failure to cite your sources is considered a violation of academic integrity and will not be tolerated by the College.
https://www.youtube.com/watch?v=jqxENMKaeCU
1. Towards Sustainable Development
https://hbr.org/2016/10/the-comprehensive-business-case-for-sustainability
https://www.corporateknights.com/channels/health-and-lifestyle/debating-population-13859891/
https://science.sciencemag.org/content/162/3859/1243
2. Sustainable Environmental Economics
https://www.theatlantic.com/business/archive/2016/11/economic-growth/506423/
3. Sustainable Business Strategy
https://www.unglobalcompact.org/take-action/leadership/integrate-sustainability/roadmap
‘Overview’, ‘5 Stages of Sustainability Integration’, ‘3 Lenses to Integrating Sustainability’ and ‘Which Organizational Functions Should be Your Priority’
https://www.iisd.org/business/pdf/business_strategy
4. Sustainable Operations: Energy Management
https://www.thestar.com/opinion/contributors/2018/06/04/us-trade-antics-no-match-for-low-carbon-manufacturers.html
http://www.footprintcalculator.org/
https://www.theglobeandmail.com/report-on-business/rob-commentary/climate-change-can-be-an-opportunity-not-a-cost-for-businesses/article37090189/
https://www.corporateknights.com/channels/built-environment/hotels-airbnb-battle-for-green-cred-14428152/
5. Sustainable Operations: Greenhouse Gas Managemen
https://www.theglobeandmail.com/report-on-business/rob-commentary/climate-change-can-be-an-opportunity-not-a-cost-for-businesses/article37090189/
https://ghgprotocol.org/
6. Sustainable Operations: Waste Management
https://www.theguardian.com/small-business-network/2016/jun/08/entrepreneurs-waste-opportunity-rubbish
https://www.wm.com/us/en/inside-wm
7. Sustainable Operations: Water Management
https://www.mckinsey.com/business-functions/sustainability/our-insights/the-business-opportunity-in-water-conservation
WWF & Coca Cola (2016). A Transformative Partnership to Conserve Water
https://c402277.ssl.cf1.rackcdn.com/publications/1096/files/original/WWF_CC_Partner_Report_2017_WebFinal ?1506450588
8. Engagement
https://www.bain.com/insights/achieving-breakthrough-results-in-sustainability
Bertels, S., and Schulschenk, J. (2015) Introduction to Framework. Embedding Project
9. Sustainable Marketing
Esty, D. & P.J. Simmons (2011). Green to Gold. John Wiley and Sons Inc. New Jersey. Chapter 15: Marketing and Sales (pp. 268 – 286)
10. Reporting & Recognition
CPA (2013). A Starter’s Guide to Sustainability Reporting. Please read chapter 1 & 2.
https://www.environmentalleader.com/2017/12/kraft-heinz-csr-report/
11. Future Directions
https://hbr.org/2007/07/a-road-map-for-natural-capitalism
· Lovins, A., Lovins, H. & P. Hawken. “A Roadmap for Natural Capitalism”. Harvard Business Review. (1999): 145 – 158.
Embedding Sustainability
Self-Assessment
Embedding Sustainability
Self-Assessment
This document is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. You are
free to share (copy and redistribute the material in any medium or format) or adapt (remix, transform, and build
upon) the material with appropriate attribution. You must give appropriate credit, provide a link to the license, and
indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests that the
authors or The Embedding Project endorse you or your use of our work product.
Bertels, S. (2014) Embedding Sustainability Self-Assessment. Embedding Project.
DOI: 10.6084/m9.figshare.3901908.
https://creativecommons.org/licenses/by-sa/4.0/
Prime 17
Cultivate Champions 18
19
Trigger 19
Explain 20
Look Beyond 20
shape identity 21
Brand 21
Share Stories 22
Mission, Vision, Values 22
signal 23
Self-regulate 23
Commit 24
Model 24
Inform 25
Follow Up 25
Recognize 26
demonstRate 27
Employee Wellbeing 27
Invest in Communities 28
Resolve Inconsistencies 28
Link 29
Leverage Interest 29
Tackle Issues 30
manage talent 31
Recruit 31
Onboard 32
Develop 32
Contents
instRuctions 1
sample Full Question 2
plan 3
Envision 3
Prioritize 4
Sustainability Goals 4
Strategy 5
impRove 6
Review 6
Root Causes 7
Ask Employees 7
Listen 8
innovate 9
Operations 9
Improve Products and Services 10
Think Systemically 10
Internal Knowledge 11
Explore 11
Pilot 12
connect outwaRds 13
Scan 13
Benchmark 14
Standards 14
Feedback 15
External Knowledge 15
engage leadeRs 16
Frame 16
Ask Leaders 17
assign 33
Sustainability Roles 33
Allocate to Senior Leaders 34
Personal Goals 34
Compensate 35
Promote 35
integRate 36
Governance 36
Risk 37
Policies 37
Procedures 38
Business
ning 38
Business Processes and Systems 39
assess pRogRess 40
Measure 40
Information Systems 41
Analytics 41
Report 42
Verify 42
the emBedding FRamewoRk 43
what does youR pReliminaRy selF-assessment tell you? 44
46
acknowledgments 47
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 1
To help you gain familiarity with the Embedding Framework, we have created a
self-assessment workbook that is a simplified version of Embedding Project’s full
practices assessment process. If you have not already done so, we recommend you
read “Introducing the Embedding Framework.” The intention of this self-assessment
workbook is to allow you to gauge the degree to which each of the 60 practices in the
framework is embedded in your organization.
Participants in the full practices assessment process make use of the comprehensive
version of the questionnaire to assess their position more accurately and with a greater
degree of granularity, as well as calibrate their responses against those of other
organizations. In addition, participants in a full practices assessment process will see
their data plotted against our evolving maturity model that takes into account the
sequencing of practices and helps them to prioritize their next steps. For your interest,
we have included one of the questions in its full form on page 2.
Undertake your preliminary self-assessment as follows:
Beginning on page 3, read the simplified versions of each of the 60 assessment
questions and check the appropriate box below each question to assess the degree to
which each practice is embedded in your organization, from low (if your organization
does not engage in this practice at all or only at an ad-hoc level), to medium (if your
organization is beginning to engage in this practice in a more systematic way), to high
(if this practice is well embedded in your organization). Use the space below each
questions to make any notes that would help you support your answer.
On page 43 we have provided a simplified version of the embedding framework that
will enable you to gain a visual sense of the distribution of your efforts. Once you have
completed the questions, detach page 43 and color in the wedges in the outer ring
following these instructions:
• Color to the innermost dotted line if your organization engages in the practice at an
ad hoc lev
el
• Color to the middle dotted line if your organization is beginning to engage in this
practice in a more systematic wa
y
• Color in to the outer line if this practice is well embedded in your organizatio
n
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 2
ENVISION
Engage in a process to make sense of a set of future scenarios and envision a sustainable
future in which the organization is able to operate in a way that adheres to environmental
limits and enhances social foundations
To what extent do you envision future sustainability scenarios in order to inform what
you do today?
0. We do not make any attempts to envision future sustainability scenarios in order to
inform what we do today.
1. We have discussions about what our organization’s sustainable future might look like,
but the process is quite informal and concentrated among a small set of people.
2. We are starting to develop an understanding of where we are headed in terms of
sustainability (possibly using future thinking tools such as forecasting, backcasting, or
scenario planning). We are beginning to use organizational and external data to inform
a set of scenarios but these do not yet translate into informing our goals.
3. We make use of future thinking tools to envision sustainability scenarios. This process
includes external data on the environmental and social thresholds of the communities
in which we operate. We use the results of this process to inform our long-term and
short-term sustainability goals but this process does not yet drive our core strategy.
4. Our core strategy team uses rigorous future sustainability scenarios to inform our
organization’s overall short-term and long-term goals. Based on this work, we have a
good sense of how our actions impact the ecosystems and social systems within which
we operate and how quickly we need to change, resulting in meaningful changes in
our business level strategies and targets.
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 3
Plan
Develop an understanding of what it would look like for your organization to operate in a
way that adheres to environmental limits and enhances social foundations and develop a
plan to help your organization move towards this future state.
ENVISION
Engage in a process to make sense of a set of future scenarios and envision a sustainable
future in which the organization is able to operate in a way that adheres to environmental
limits and enhances social foundations
To what extent do you envision future sustainability scenarios in order to inform what you
do today?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 4
PRIORITIZE
Identify a set of material economic, environmental and social issues based on an understanding
of the organization’s positive and negative influences on the ecosystems and social systems in
which it operates
To what extent have you identified your material economic, environmental and social issues
based on an understanding of your positive and negative influences on the ecosystems and
social systems in which you operate?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
SUSTAINABILITY GOALS
Develop organizational and business unit goals and targets that would enable operating in a
way that adheres to environmental limits and enhances social foundations
To what extent have you set organizational and business unit goals and targets that address
environmental limits and enhance social foundations?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 5
STRATEGY
Incorporate consideration of environmental limits and social foundations into the organization’s
core strategy-making process
To what extent do you integrate sustainability into your core strategy-making process?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 6
Improv
e
Build internal capacity to revisit and evaluate past sustainability efforts and mistakes.
Put mechanisms in place to encourage and enable your employees to provide input on
how your sustainability performance might be improved.
REVIEW
Revisit the organization’s efforts and progress towards its sustainability goals and
commitments and determine whether changes in approach are needed
To what extent do you routinely revisit your efforts towards sustainability to determine
whether you are meeting your goals and commitments and whether changes in approach
are needed?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 7
ROOT CAUSES
Proactively seek to understand and learn from prior incidents, problems or concerns related
to sustainability
To what extent do you proactively seek to understand and learn from prior incidents,
problems or concerns related to sustainability?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
ASK EMPLOYEES
Proactively seek employees’ opinions and ideas about how to approach and solve
sustainability issues
To what extent do you seek opinions and ideas from employees about how to approach
and solve sustainability issues?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 8
LISTEN
Foster a culture that is receptive to employees’ opinions and ideas about
sustainability
To what extent do you foster a culture of listening to employee ideas about sustainability?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 9
Seek out ways to improve your organization’s sustainability performance by thinking
systemically and considering the full lifecycle of your products and services. Develop
formal and informal channels to enable your employees to participate in this process.
IMPROVE OPERATIONS
Improve the sustainability performance of your operations
To what extent have you improved the sustainability performance of your operations?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 10
IMPROVE PRODUCTS AND SERVICES
Understand and improve the sustainability of products and services both in terms of their
production and their performance
To what extent do you make efforts to understand and improve the sustainability
performance of your products and services?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
THINK SYSTEMICALLY
Consider the full lifecycle impact of products and services (for example in the design,
development, delivery, use, end of life and recommissioning stages) and how decisions
made across the business and value chain are connected in terms of their influence on
the ecosystems and social systems in which the organization operates
To what extent do you approach understanding your organization’s sustainability by
assessing connections between environmental and social impacts across the business
and the value chain?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 11
INTERNAL KNOWLEDGE
Encourage the sharing of sustainable ideas and solutions among employees across the
organization through internal knowledge networks and communities of practice
To what extent do you encourage and support the exchange of sustainability ideas and
solutions among employees across the organization?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EXPLORE
Encourage employees to try new things or develop their own solutions, and provide
resources to aid them
To what extent do you encourage employees to try new things or develop their own
solutions, and provide resources to aid them?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 12
PILOT
Make a formal decision to undertake new initiatives or practices as a test or trial with a clear
start point, end point, and associated set of evaluative activities
To what extent do you support the formal piloting of sustainability initiatives and projects?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 13
Gather and exchange information with actors outside your organization and make use of
standards in order to benchmark and improve your organization’s performance and the
performance of others.
SCAN
Make use of systems or processes to perceive and recognize external information and trends
related to sustainability
To what extent do you make use of systems or processes to scan for external sustainability
information and trends?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 14
BENCHMARK
Compare the organization’s sustainability processes and performance with the performance
of other organizations
To what extent do you benchmark your sustainability processes and performance against
those of other organizations?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
STANDARDS
Comply with a recognized set of external standards related to environmental and/or social
performance
To what extent do you adhere to recognized sets of external standards related to
sustainability performance?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 15
FEEDBACK
Solicit input from those outside the organization on its priorities and its performance
against them
To what extent do you solicit input from those outside your organization on your
sustainability priorities and your performance against them?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EXTERNAL KNOWLEDGE
Exchange sustainability knowledge with other organizations with the aim of generating
system-wide improvements
To what extent do you exchange sustainability knowledge with other organizations?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 16
Identify and support formal and informal leaders across the organization to help them
better understand how sustainability fits into your operations and to help them contribute
effectively to making the changes needed to further your sustainability progress.
FRAME
Communicate the importance of sustainability by aligning it with the varying priorities of
different leaders across the organization
To what extent are you able to develop a set of distinct but complementary frames
that communicate the importance of sustainability in a way that resonates across your
leadership team and beyond?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 17
ASK LEADERS
Proactively seek senior and mid-level management’s opinions about how to improve the
organization’s sustainability performance
To what extent do you proactively seek senior and mid-level management’s opinions about
how to improve your sustainability performance?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
PRIME
Prepare future organizational leaders to better incorporate sustainability into their actions
and decision-making
To what extent do your emerging leader programs prepare future leaders to better
incorporate sustainability into their actions and decision-making?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 18
CULTIVATE CHAMPIONS
Identify influential individuals and support them to become sustainability champions
To what extent do you identify influential individuals and support them to become
sustainability champions?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 19
Prepare employees for their role in supporting your organization’s sustainability vision by
helping them see the positive and negative consequences of particular actions, helping
them understand how sustainability applies to their everyday work, and challenging their
existing assumptions about sustainability.
TRIGGER
Disrupt the status quo by helping employees see a positive vision of the future and/or the
negative impacts of unsustainable behaviour
To what extent do you disrupt the status quo to help employees see a positive vision of
the future or help employees see the impacts of unsustainable behaviour?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
Build Readiness
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 20
EXPLAIN
Explain how sustainability connects to an employee’s everyday experiences and work
To what extent do you help employees to understand how sustainability applies to your
organization and their everyday work?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
LOOK BEYOND
Raise the level of awareness and understanding of sustainability through the provision of
information that challenges existing assumptions, profiles new technologies or presents
alternate visions of the future
To what extent do you make attempts to raise employees’ awareness of sustainability
through the provision of information that helps them challenge their assumptions and
introduces them to cutting edge ideas?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 21
Build sustainability into the fabric of your organization by explicitly referencing it in your
mission, vision, and values; employing a brand to communicate your sustainability vision;
and encouraging the development of a cohesive narrative about sustainability to help
shape your sustainability journey.
BRAND
Employ characteristics (e.g. visual, cultural or symbolic) that call to mind sustainability
To what extent does your brand communicate your sustainability vision and commitments
to employees and others?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 22
SHARE STORIES
Build a capacity for and acceptance of the sharing of sustainability stories and anecdotes as a
means to inform the organization’s sustainability journey
To what extent have you built a capacity for and acceptance of the sharing of sustainability
stories and anecdotes as a means to inform the organization’s sustainability journey?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
MISSION, VISION, VALUES
Integrate sustainability into the organization’s mission, vision and values
To what extent do you make explicit statements about sustainability in communicating your
organization’s mission, vision, values, and/or core purpose?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 23
Undertake actions to communicate the importance of sustainability to your employees by
making external commitments and by establishing internal processes for follow up and
recognition of sustainability efforts.
SELF-REGULATE
Adopt more stringent practices than mandated by regulation or common standards
To what extent do you implement voluntary initiatives and adopt more stringent practices
than mandated by regulation or common standards?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 24
COMMIT
Have the organization and/or senior leadership team make a public commitment to
sustainability goals and targets
To what extent does your organization and your senior leadership team make its
commitment to sustainability public?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
MODEL
Managers visibly fulfill the organization’s desired sustainability behaviors and through
their actions demonstrate their commitment and their expectations of others
To what extent does organizational leadership model the organization’s desired
sustainability behaviors and through their actions demonstrate their commitment
and their expectations of others?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 25
INFORM
Keep employees informed, apprised, and up-to-date on efforts and progress related
to sustainability
To what extent do your managers ensure that they keep employees informed about the
status of ongoing sustainability projects and initiatives including which initiatives are
being pursued (or not pursued) and why?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
FOLLOW UP
Regularly monitor and enquire about the status of sustainability tasks
To what extent do your frontline managers regularly follow up with employees to monitor
and enquire about the status of sustainability tasks in your organization?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 26
RECOGNIZE
Show awareness of, approval of, or appreciation for efforts to implement sustainability
through informal accolades
To what extent do you recognize efforts to implement sustainability (such as coming up
with solutions to sustainability problems, devising efforts to save energy or reduce waste,
and volunteering) through rewards and recognition?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 27
Invest resources to ensure that your organization’s commitment to sustainability aligns with
its on-the-ground actions and that your organization is working towards positively impacting
its work force, the environment, and society.
EMPLOYEE WELLBEING
Provide programs or initiatives to support the wellbeing of employees
To what extent does your organization signal its commitment to employee wellbeing?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 28
INVEST IN COMMUNITIES
Contribute resources to the communities within which the organization operates and
encourage and enable employees to do the same
To what extent do you contribute resources to the communities within which you operate
and encourage and enable employees to do the same?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
RESOLVE INCONSISTENCIES
Identify and eliminate perceptions of inconsistencies between stated intentions and on the
ground actions
To what extent do you Identify and eliminate perceptions of inconsistencies between your
sustainability commitments and your on the ground actions?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 29
LINK
Bring sustainability down to the individual level by connecting the impact of everyday actions
at work with sustainability at home (and vice versa); connect organizational sustainability
activities to personal sustainability activities (and vice versa); make it easier
for employees to make choices that favour sustainability
To what extent do you encourage employees to bring their personal sustainability behaviors
to work or connect organizational sustainability activities to their personal lives?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
LEVERAGE INTEREST
Condone, encourage, and support grassroots efforts of employees and engage interested
employees to help identify and reconcile inconsistencies and spread environmentally and
socially responsible behaviours
To what extent do you encourage and support grassroots efforts and/or engage interested
employees to identify and reconcile inconsistencies and help spread environmentally and
socially responsible behaviours?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 30
TACKLE ISSUES
Work with other organizations to try to achieve broader sustainability goals that benefit the
environment and/or society
To what extent do you collaborate with other organizations to try and achieve shared
sustainability goals that benefit the environment and/or society?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 31
Make investments into ensuring that your employees possess the competencies and
knowledge needed to support your sustainability vision by including sustainability in
the recruitment and onboarding processes and by providing professional development
opportunities.
RECRUIT
Include sustainability as an element of the recruitment process by promoting the
organization’s sustainability commitments or by assessing a candidate’s sustainability
values and/or competencies
To what extent do you include sustainability as an element of the recruitment process by
promoting your sustainability commitments and/or by assessing a candidate’s sustainability
values and/or competencies (such as interdisciplinary thinking or an understanding of
lifecycles and systems)?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 32
ONBOARD
Incorporate sustainability training and socialization into the organization’s onboarding process
To what extent do you incorporate sustainability training and socialization into a new
employee’s onboarding process?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
DEVELOP
Invest in identifying, assessing and developing the competencies and knowledge that
employees need to deliver on the organization’s sustainability
commitments
To what extent do you invest in identifying, assessing and developing the competencies and
knowledge that employees need to deliver your sustainability commitments?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 33
Clearly establish accountability for delivering on your organization’s sustainability vision by
establishing sustainability roles, allocating responsibility to senior leaders, and translating
organizational goals and targets into employee responsibilities. Support accountability by
incorporating sustainability criteria into compensation and promotion.
SUSTAINABILITY ROLES
Establish roles or responsibilities within the organization that allocate sustainability
responsibilities
To what extent have you established roles and responsibilities within the organization to
allocate sustainability responsibilities?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 34
ALLOCATE TO SENIOR LEADERS
Allocate the responsibility of delivering on the sustainability agenda to the most senior
leadership roles within the organization
To what extent do you allocate the responsibility for delivering on the sustainability
agenda to senior leaders?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
PERSONAL GOALS
Translate organizational sustainability goals and targets into employee responsibilities
and expectations
To what extent do you translate organizational sustainability goals and targets into
employee responsibilities and expectations?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 35
COMPENSATE
Link employee compensation (salaries, wages, incentives and commissions) to the
achievement of set sustainability objectives
To what extent do you link employee compensation to the achievement of set
sustainability objectives?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
PROMOTE
Move people with sustainability values and skills into higher positions in the organization
through incorporating sustainability criteria into decisions about advancement
To what extent do you move people with sustainability values and skills into higher positions
in the organization through incorporating sustainability criteria into decisions about
advancement?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 36
Build sustainability into the plans, policies, and processes that guide and support your
organization’s daily work.
GOVERNANCE
Incorporate fundamental considerations of environmental and social factors into the
governance of the organization
To what extent do you incorporate fundamental considerations of environmental and
social factors into the governance of the organization?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 37
RISK
Incorporate sustainability considerations into the organization’s risk process
To what extent do you integrate sustainability into your risk assessment process?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
POLICIES
Develop and put into use policies, codes of conduct, and management standards related to
sustainability
To what extent do you create and make use of organizational policies, codes of conduct,
and management standards related to sustainability?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 38
PROCEDURES
Outline and equip employees to enact the procedures that are required to deliver on the
organization’s sustainability commitments
To what extent have you aligned your procedures to guide employees in enacting your
sustainability policies?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
BUSINESS PLANNING
Incorporate sustainability into the organization’s business planning process
To what extent do you integrate sustainability into your business planning process?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 39
BUSINESS PROCESSES AND SYSTEMS
Ensure that the organization’s existing business processes and systems are in alignment
with delivering on its sustainability commitments
To what extent have you undertaken a process to ensure that your existing business
processes and systems are in alignment with delivering on your sustainability commitments
(for instance, project management systems; design processes; and accounting or financial
management systems)?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 40
Build an understanding of where your organization is, where it needs to go, and whether
it is on the right track to get there by capturing, storing, analyzing, and reporting on
sustainability data, and by rigorously verifying the accuracy of the data you collect.
MEASURE
Assess and quantify the organization’s sustainability impacts and contributions
To what extent do you measure your sustainability impacts and contributions?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 41
INFORMATION SYSTEMS
Use information systems to collect, store and render sustainability data accessible
To what extent have you developed information systems to support your sustainability efforts?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
ANALYTICS
Use, combine, and display sustainability data in meaningful ways to generate new insights
To what extent do you use analytics and algorithms to combine and display sustainability data
in meaningful ways to generate new insights?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 42
REPORT
Document and publicly share the organization’s sustainability performance and progress
To what extent do you report on your sustainability performance?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
VERIFY
Undertake systematic assessments to form an opinion on whether statements about actual
circumstances or past performance are true and correct
To what extent do you verify the results of your sustainability performance?
Our organization engages in this practice at an ad-hoc level
Our organization is beginning to engage in this practice in a more systematic way
This practice is well embedded in our organization
Notes:
E
nv
is
io
n
P
rio
rit
iz
e
S
us
ta
in
ab
ili
ty
G
oa
ls
S
tra
te
gy
R
ev
ie
w
Ro
ot
C
au
se
s
As
k E
m
p
loy
ee
s
Lis
ten
Imp
rov
e O
per
atio
ns
Imp
rov
e P
rod
ucts
an
d S
erv
ices
Thin
k Sy
stem
icall
y
Intern
al Kn
owled
ge
Explore
Pilot
Scan
Benchmark
Standards
FeedbackExternal Knowledge
FrameAsk Leaders
PrimeCultivate Cham
pions
Trigger
E
xplain
Look B
eyond
B
rand
S
hare S
tories
M
ission, V
ision, V
alues
S
el
f-R
eg
ul
at
e
C
om
m
it
M
od
el
In
fo
rm
Fo
llo
w
U
p
Re
co
gn
ize
Em
plo
ye
e
W
ell
be
ing
Inv
es
t in
C
om
mu
nit
ies
Re
so
lve
In
co
ns
ist
en
cie
sL
ink
Lev
era
ge
Inte
res
t
Tac
kle
Issu
es
Recr
uit
Onboard
Develop
Sustainability Roles
Allocate to Senior Leaders
Personal Goals
Compensate
Promote
Governance
Risk
Policies
Procedures
Business Planning
Business Processes and S
ystem
s
Inform
ation S
ystem
s
A
nalytics
R
eport
V
erify
M
easure
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 43
Date of Assessment:
P
la
n
Im
pr
ov
e
Innov
ate
Connect
Outwards
Engage
LeadersBuild
R
eadiness
S
hape
IdentityS
ig
na
lDe
mo
ns
tra
te
Manage
Talent
Assign
Integrate
A
ssess
P
rogress
Deliver
on existing
commitments
Formal practices
that leverage rules and procedures
Advance
further along
the path to
sustainability
Informal practices
that leverage values and influence social norms
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 44
What does your preliminary
self-assessment tell you?
BUMPY OR SMOOTH?
Is your wheel quite smooth or rather bumpy? A bumpy wheel suggests that your company
may run the risk of advancing too far on certain practices without the internal alignment and
support to sustain them.
WHAT IS THE DISTRIBUTION OF PRACTICES BETWEEN THE FOUR QUADRANTS?
Do you find that your practices cluster in particular quadrants? Are you over using some tactics
and underusing others?
Formal Fulfillment: These practices aim to clarify expectations; to outline desired practices
and procedures; and to assess the organization’s progress against its stated sustainability
objectives.
Informal Fulfillment: Practices in this quadrant support the goal of delivering on sustainability
commitments by focusing on changing the ‘hearts and minds’ of employees and in turn, their
behaviors.
Informal Advancement: These practices help to build momentum through informal efforts to
create an environment that is conducive to developing the new ideas needed to bring the
organization closer to sustainability.
Formal Advancement: Practices in this quadrant instill capacity for change and involve the
creation of structures or processes that form the foundation for future innovation towards
sustainability.
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 45
HOW FAR HAVE YOU ADVANCED?
Mostly at the inner ring indicates that you are at the beginning of starting to think about
what sustainability could mean for your company. You may have basic compliance around key
social and environmental regulations in place and are starting to consider what some early
gains, mostly around efficiencies, might be. There are lots of opportunities to progress on
your journey and your focus at this point should be on establishing proof points to build the
business case for your work with the core business teams while building trusting networks of
colleagues with whom you can advance sustainability throughout the company.
Mostly mid-way indicates that you are beginning to embed and may have some great
initiatives underway that are starting to gain traction. The opportunity now lies in translating
specific projects and initiatives into ‘the way we do things around here’. The work ahead is to
embed sustainability into everyday organizational policies, practices and procedures.
Most practices in the outer ring means that you are well on your way to having sustainability
embedded across your company. Considerable work has been achieved in order to realize
this and there is a strong culture of sustainability across the organization that is driven by the
business units themselves. Your company has a strong understanding of what sustainability
means to your business and real change is happening within your operations and your supply
chain. The work ahead of you lies in engaging your industry to realize collective change.
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 46
About the Embedding Project
The Embedding Project is a collaboration between leading sustainability researchers
and practitioners undertaking pioneering work on embedding sustainability globally. By
facilitating global communities of practice, we gather the best available knowledge and,
working with our practitioner members, we create practical assessments, guidebooks and
tools that help you chart your company’s path to good business.
Our work is anchored in a review of prior academic and practitioner work on embedding
sustainability conducted in 2010 for the Network for Business Sustainability that resulted
in a framework to guide companies in their sustainability efforts. Our framework charts a
portfolio of organizational practices that, together, lead to embedding and highlight the
importance of balancing your efforts to deliver on your sustainability commitments while
laying the foundation for the changes that will help you become more sustainable.
The initial framework was enthusiastically received by the business community and
in response to requests from organizations for more information and guidance on
implementation, Dr. Bertels in partnership with the Network for Business Sustainability
brought together a dozen leading global companies to form an Embedding Sustainability
Working Group to test and refine the framework. Working for three years with global
practitioners, the framework has now been refined into a practices assessment tool that
charts an organization’s maturity and embeddedness.
We invite you and your company to participate in this ongoing research and join other
companies leading this effort. The Embedding Project can help you understand your past
efforts, identify gaps, benchmark against your peers, prioritize next steps, and provide the
guidance to do so. Our partner companies benefit through opportunities to learn from their
peers in facilitated and structured processes that explore the topics that matter to you.
To learn more about how the Embedding Project could support you and your company,
visit us at embeddingproject.org
http://www.embeddingproject.org
EMBEDDING SUSTAINABILITY SELF-ASSESSMENT 47
We are grateful to the organizations that participated in the Embedding Sustainability Working
Group and in the creation of this guide for their commitment and support of our research.
The Embedding Project is hosted by the Beedie School of Business at Simon Fraser University
and the Graduate School of Business at the University of Cape Town.
This research was supported by the Social Sciences and Humanities Research Council of Canada
and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ).
- Instructions
- What does your preliminary
self-assessment tell you?
Sample Full Question
Plan
Envision
Prioritize
Sustainability Goals
Strategy
Improve
Review
Root Causes
Ask Employees
Listen
Innovate
Improve Operations
Improve Products and Services
Think Systemically
Internal Knowledge
Explore
Pilot
Connect Outwards
Scan
Benchmark
Standards
Feedback
External Knowledge
Engage Leaders
Frame
Ask Leaders
Prime
Cultivate Champions
Build Readiness
Trigger
Explain
Look Beyond
Shape Identity
Brand
Share Stories
Mission, Vision, Values
Signal
Self-regulate
Commit
Model
Inform
Follow Up
Recognize
Demonstrate
Employee Wellbeing
Invest in Communities
Resolve Inconsistencies
Link
Leverage Interest
Tackle Issues
Manage Talent
Recruit
Onboard
Develop
Assign
Sustainability Roles
Allocate to Senior Leaders
Personal Goals
Compensate
Promote
Integrate
Governance
Risk
Policies
Procedures
Business Planning
Business Processes and Systems
Assess Progress
Measure
Information Systems
Analytics
Report
Verify
The Embedding Framework
About the Embedding Project
Acknowledgments
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Week 2 – in Review
Review each of the four theories that describe the fundamental causes of unsustainability
Do you agree with any one theory; or, do you have your own theory regarding the fundamental causes of unsustainability?
What solutions, presented in “Debating Population“, may help us save ourselves… from ourselves!?
Schedule & Learning Objectives
Capitalism: a Brief Introduction
Sustainable Environmental Economics
APA workshop & work period
Capitalism: a Brief Introduction
Maybe the cause of unsustainability is free-market environmentalism… but wait, let’s back up for a moment…
Capitalism is the dominant economic system in the world today
In capitalism, the means of production (facilities, tools, machinery, natural resources, etc.) are privately owned and operated for a profit (profit-motive)
Many theorists contributed to the economic system, notable among them:
Adam Smith (1723 – 1790) – invisible hand/division of labour
Karl Marx (1818 – 1883) – creates a class system/uniformity, conformity & cheapness
Central to capitalism is the concept of perpetual growth
Sustainable Environmental Economics
While it is generally agreed that sustainable development would be difficult if not impossible to achieve under capitalism as it exists today, with a few small modifications, it may be possible for the two to coexist!
Let Consumers make informed decisions
Value nature’s “free” services
Reconsider socially-efficient solutions
Adopt a more comprehensive measure of development
Sustainable Environmental Economics
1. Let Consumers make Informed Decisions
The “free-market” of capitalism sets market costs for goods and services based on what the consumer is willing-to-pay; however, the market cost may not represent the true cost
Must consider externalities (hidden costs) associated with any given good or services
Solution: prices must reflect the true cost!
A $200 hamburger? Raj Patel describes why the true cost of a burger is closer to $200 than $5!
Sustainable Environmental Economics
2. Value Nature’s “Free” Services
Natural capital is generally treated as a “free” input
Or, if value is assigned, it often dramatically underestimated
Solution: assign value to incommensurables
Sustainable Environmental Economics
3. Re-Consider Socially-Efficient Solutions
Entrenched within our regulatory apparatus, environmental decisions are routinely made in consideration of the most socially-efficient solutions
Decision making relies on benefit-cost analysis
Let’s consider an example: what are you willing-to-pay for clean air?
Solution: sustainable benefit-cost analysis
Sustainable Environmental Economics
4. Adopt a more comprehensive measure of development
Gross domestic product (GDP) has been adopted as the primary measure of development
A brief history of GDP
If GDP is up, why is America down?
Natural disasters are positive, unpaid work is a waste of time, depletion of natural capital is encourage and pollution is king! (yes…. you are reading this correctly!)
Solution: redefine development goals; there are a few options, including: Sustainable Development Goals and Genuine Progress Indicator
Course Project Introduction & APA
To ensure that we are all on the same page with APA – let’s take some time to review and revise our work!
Open your CP introduction – let’s do a citation check
Reference list check
Summary & Next Steps
Capitalism preaches growth, without valuing the very capital that makes such growth possible
It’s time to review the current economic system to ensure it supports corporations’ triple bottom line prosperity
Next class: Sustainability’s Stakeholders
Review instructions for Assignment #2
Complete assigned reading
Complete and re-submit Assignment #1
A Transformative
Partnership
to Conserve Water
ANNUAL REPORT 2016
1
Introduction
World Wildlife Fund (WWF) and The Coca-Cola Company have worked together for a
decade to help conserve the world’s freshwater resources and reduce Coca-Cola’s
environmental footprint. Our partnership proudly serves as a model for cross-sector
collaborations to create a more water-secure future for our planet.
Our global partnership is focused on helping ensure healthy, resilient freshwater basins
in the Mesoamerican Reef catchments in Mexico, Belize, Guatemala, and Honduras, and
the Yangtze River basin in China.
WWF and Coca-Cola are also working to improve environmental performance across
Coca-Cola’s supply chains, integrate the value of nature into decision-making processes,
and convene influential partners to help solve global environmental challenges. These
priorities intersect in the Mesoamerican Reef catchments and the Yangtze River basin
to strengthen the ecosystem health of the basins and improve results for the local
communities.
Collaboration is at the heart of our partnership. Working with government, international
financial institutions, academia, industry, and civil society is necessary to make a lasting
impact. Our partnership is committed to tackling the natural resource challenges that
impact freshwater and, along the way, elevating awareness of the power of partnership
to address these challenges.
Protection of
3
5
0 hectares
of forest in
the Pasabién
River basin
in Guatemala
continued,
through control
and prevention
of forest fires.
Cover: Amy Sparks Photography ; Left:
© Audra Melton
2
Mesoamerican Reef Catchments
Protecting Fresh Water through Fire Prevention, Certifying
Sustainable Sugar, and Employing Science
WWF and Coca-Cola are working together to address freshwater conservation challenges around
the world, including those faced by the catchments that drain to the second-largest barrier reef
in the world, the Mesoamerican Reef in Central America. There, deforestation, forest fires, land
conversion, and unsustainable agriculture threaten forest, river, and reef ecosystems, which are
depended upon by more than 2 million people and more than 500 fish species.
The threats trickle downstream. Deforestation in the headwaters and unsustainable commercial
agriculture reduce the water quality that flows into the reef, which is already struggling with
impacts from climate change, such as
rising sea levels and temperatures. The
complexity of these challenges and the
fact that the water is shared—by people,
communities, businesses, and nature—
from source to sea, mean the solution
must be collaborative and comprehensive.
All stakeholders—businesses,
government, and local communities—
need to come together to address the
shared challenges and risks.
Through the implementation of a ridge-
to-reef approach, our partnership is
demonstrating how—together—water
stewardship, sustainable agriculture,
and data-driven conservation can foster
a thriving environment with abundant,
healthy water for people and nature.
© Audra Melton
3
PREVENTING FIRE TO HELP PROTECT THE SOURCE
One of the major challenges in Central America is forest fires, which
can negatively impact water source quality. Since the inception of our
partnership, fire control and prevention projects have been a focus
for us in this area—a region susceptible to wildfires during the dry
season, and where fire is too often used as a tool for agricultural land
management.
In 2016, we continued protection of 350 hectares of forest in the
Pasabién River basin in Guatemala through prevention and control
of forest fires. Our partnership also transferred lessons learned to
Honduras, where our partners in Guatemala conducted fire training with
División Municipal de Aguas (DIMA), the local water management agency
for the San Pedro Sula region, leveraging support from SAB Miller.
Further, we launched the Río Belize Task Force (RBTF) collective action
platform and engaged the Belizean Minister of the Environment and
local Coca-Cola bottler for support and participation. Bowen & Bowen,
the local Belizean Coca-Cola bottling partner, is now participating in the
RBTF and sharing water data and analysis capabilities.
Our partnership also worked with stakeholders to identify water reserves in Guatemala to help
advance the country’s water security. Water reserves are critical areas for the capture, recharge,
and regulation of water flows, and consequently, contribute to the sustainability and health
of society, the economy, and the environment. Further, these areas are an essential strategic
measure for building resilience to climate change. As part of stakeholder discussions, Guatemala’s
National Forestry Institute agreed to utilize the new water reserves map to inform upcoming
projects.
MEETING SUSTAINABLE SUGAR CERTIFICATION GOALS
IN CENTRAL AMERICA
Through global sourcing efforts, in collaboration with bottling partners, Coca-Cola sustainably
sourced more than 1 million tons of sugar in 2016, with plans to double that amount in 201
7
. This
work supports Coca-Cola’s overarching sustainable agriculture goal to more sustainably source our
priority ingredients, including sugar, by 2020. Agriculture accounts for approximately half of what
Coca-Cola spends on inputs to its products and packaging, and Coca-Cola embraces the opportunity
to promote improved sustainable agriculture practices worldwide, including in Central America.
In 2016, our partnership helped the Magdalena sugar mill, a Coca-Cola supplier in Guatemala,
attain Bonsucro certification, making it the second sugar mill to receive this certification in Central
America. Combined with the success of the Honduran Azucarera del Norte (Azunosa) sugar mill’s
certification in 2015, we have met our goal to support Bonsucro certification of two sugar mills
within the catchments of the Mesoamerican Reef.
© Audra Melton
4
Bonsucro certification is the preferred method for sugarcane mills and growers to demonstrate
compliance with Coca-Cola’s Sustainable Agriculture Guiding Principles (SAGP), which, among
other requirements, sets standards to be met by farm suppliers for human and workplace rights,
environmental protection, and responsible farming management.
Our partnership continues to work to promote Bonsucro certification in the region, and we are
currently working with two sugar mills in Mexico and Honduras. In addition, WWF completed
detailed supply risk analyses for five frontier geographies (including Honduras and Mexico) to
inform Coca-Cola’s sustainable sourcing strategies and actions toward its 2020 sourcing goals.
USING SCIENCE TO MAKE THE BUSINESS CASE FOR
NATURAL CAPITAL INVESTMENT
By measuring stable isotopes, it can be determined which part of a watershed supplies water to
a certain area. This innovative approach pinpoints the part of the watershed that provides water
downstream to help direct conservation efforts and guarantee future water availability.
Isotope studies are a tool WWF employs to help businesses and municipalities identify their
water sources so they can make appropriate investments in natural resource efforts to improve a
source’s ability to continue to provide supply. WWF has used this science-based approach to help
Coca-Cola bottlers in Central America recognize the
business case for natural capital investment beyond
the fence line. The first isotope study was conducted
for Bottling Investments Group (BIG), the Coca-Cola
bottler in Zacapa, Guatemala, and is now being utilized
with other bottlers in the region.
Through these studies, bottlers have realized their
exposure to potential water risks from uncontrolled
fire in their source water areas and have helped build
the awareness of local communities regarding the
importance of fire prevention and control, while also
investing in on-the-ground projects.
The Magdalena
sugar mill,
a Coca-Cola
supplier in
Guatemala that
sources from
7,000 hectares
of sugarcane
land, attained
Bonsucro
certification.
It is the
second Central
American mill
to achieve
certification.
Above and right: © Audra Melton
http://www.coca-colacompany.com/content/dam/journey/us/en/private/fileassets/pdf/2013/07/sustainable-agricultural-guiding-principles
5
6
Yangtze River Basin
Working to Protect Water Resources in Central China
The Yangtze River, the third-longest river in the world, at 4,000 miles, plays a critical role in
connecting cultures, landscapes, ecosystems, and economies. Unfortunately, the river faces great
challenges from unprecedented pollution, resulting from rapid, large-scale development and
agricultural runoff. In partnership with local conservationists, WWF and Coca-Cola are helping
preserve and protect sub-basins in the Yangtze, and are working with the Chinese government to
implement policies to protect this important resource into the future.
Partners, in concert with the Hunan provincial government, are promoting sustainable
development in three key areas of the Yangtze River basin:
— The Liuyang River, a tributary to the Xiang River, and one of China’s most polluted
rivers
— The Chang-Zhu-Tan city cluster, three cities growing at the intersection of two
major economic belts and the Xiang River
— Dongting Lake, China’s second-largest freshwater lake and the outlet for most of
the rivers in Hunan
REINTRODUCING PÈRE DAVID’S DEER
Since 2014, WWF and Coca-Cola have been working on a
restoration project at Junshan Rear Lake to help the local
community transition away from illegal fishing activities
and towards land-based activities aimed at replenishing
water and increasing eco-tourism.
Due to the completion of wetland restoration near
Junshan Rear Lake, protected wetlands in Dongting
doubled to 20,000 hectares and the State Forestry
Administration reintroduced Père David’s deer, called milu
in China, into the area in 2015. Native to China, the deer
eat grasses and aquatic plants. According to Chinese lore,
the milu imbues the qualities of four animals—a deer’s
agility, a horse’s speed, an ox’s strength, and a donkey’s
sense of direction. Five Père David’s deer were born in
2016 in the protected wetlands, another sign that the deer
are thriving in their new home.
The completion
of wetland
restoration
near Junshan
Rear Lake
meant that
protected
wetlands
in Dongting
doubled to
20,000 hectares.
Above and right: © Audra Melton
7
8
INCREASING AQUATIC BIODIVERSITY
Over-application of fertilizers and pesticides by farmers can result in polluted field runoff to
nearby streams. WWF, Coca-Cola, and the Jinjing Tea Company sought to reverse this negative
impact by constructing wetlands. Thanks to this collaboration, today the wetlands are ensuring
that water flowing from tea plantations is cleaner. Pollutants, which may have flowed into nearby
streams, are feeding aquatic plants. Frogs and other species that are indicators of a clean
environment are returning to the locale for the first time in years.
The habitat reconstruction at Jinjing Tea Garden was named one of the 30 most beautiful tea
gardens of 2016 by a Chinese Agriculture Association.
PROTECTING AN URBAN ENVIRONMENT
Changsha, the capital of Hunan province and located in south central China, is home to over 7
million people. It is also home to a Coca-Cola bottling partner and a recently formed wetland park,
Yanghu Wetland Park. Based on past lessons, WWF realized the park staff might benefit from
support and training.
WWF has been actively involved in the capacity building of management staff of Yang Lake to
ensure effective management. Our partnership participated in the wetland design to help treat
sewage and conducted a series of training on wetland restoration. In conjunction with the
Forestry Department of Hunan Province (FDHP), partners supported the construction of a facility
for environmental education (a nature school), the first of its kind in Hunan province. In the future,
a series of events will be hosted with partners in order to promote the school.
CONSTRUCTING WETLANDS
As a result of our partnership’s work, the Hunan provincial government included eight pilot
wetland restoration sites, covering a total of 200 hectares, in its three-year action plan (2016–
2018) for Xiang River. These pilots are an important step toward establishing a local commitment
to conservation of the basin. The Hunan government invested nearly US$5 million in green
infrastructure, and the local government matched these funds for a total of nearly US$
10
million.
To support implementation of the action plan, 60 people from forestry departments across
a number of cities were trained on how to effectively restore wetlands. Furthermore, lessons
learned from this work will be replicated in other areas of the Yangtze River basin.
ASSESSING THE NATURAL CAPITAL OF THE LIUYANG RIVER SUB-BASIN
WWF and partners, including academia and local government, released the Natural Capital
Assessment of the Liuyang River report in October 2016, in response to the 13th Five-Year Plan
for National Economy and Social Development of Hunan Province, and its findings will be
incorporated into future project implementation. To accomplish this goal, the full assessment will
be published later in 2017, and workshops will be held for government officials and researchers to
share the research methods and results, and discuss how to replicate the work.
The Hunan
provincial
government
has included
8 wetland
restoration
sites in its
recent 3-year
action plan for
Xiang River,
an important
step towards
establishing local
commitment to
conservation of
the Basin.
Right: © Audra Melton
9
Around the World
To create a more water-secure future, WWF and Coca-Cola work together locally to protect
watersheds and address water needs in dozens of countries. Below are examples of the progress
that has been achieved through these local alliances.
1. Amur-Heilong
The Amur-Heilong spans an area covering parts of northeastern China and the Russian Far East,
and is host to a vast array of species. In past years, Coca-Cola and Cargill worked with WWF to
establish demonstration farms in Songyuan in the Jilin province of China in order to highlight
sustainable agricultural practices ranging from planting, tilling, and harvesting to storage and
selling. In 2016, this pilot project developed into a longer-term partnership between WWF and a
local company, Yili Dairy. This new partnership incorporates our conservation objectives around
sustainable agriculture and creates a long-term model for sustainability for the dairy company and
the farmers who supply its feed.
2. Great Barrier Reef
The Great Barrier Reef is the largest barrier reef system in the world and is an immensely
ecologically diverse system. Project Catalyst, a partnership between The Coca-Cola Foundation
(TCCF), WWF, farmers, and natural resource management groups, aims to promote innovative
sugarcane growing practices that reduce water quality impacts in the Great Barrier Reef
catchments in Australia. The project started out with 19 farmers in 2009, and has progressively
grown to include 80 growers who farm more than 15,000 hectares. These growers are pivotal
in evaluating innovations and practices. In 2016, TCCF signaled their continued support of this
project through an additional US$500,000 grant.
1
5
4
3
2
Mesoamerican
Reef catchments
in Mexico, Belize,
Guatemala, and
Honduras
(see page 2)
Yangtze River
basin in China
(see page 6)
10
11
3. Mekong
The Mekong River is touted as being the 10th-largest river in the world, and one of the most
diverse, stretching for 4,500 kilometers. WWF, with the support of Coca-Cola and The Coca-Cola
Foundation, developed and successfully advocated for a new wetland management policy in
Vietnam, helped implement an ecotourism plan that included construction of a new welcome
center meant to improve guesthouse accommodations in Vietnam, and chose five households for
a homestay development project to help increase household income and improve hygiene and
sanitation.
In Myanmar, Coca-Cola and WWF collaborated to draft a water stewardship strategy, conduct
trainings for the beverage industry, and develop a guide on wastewater management. WWF and
Coca-Cola worked to engage businesses in this approach via a newly formed multi-stakeholder
working group that included representatives from the beverage industry and government.
4. Rio Grande/Rio Bravo
The Rio Grande/Rio Bravo is the iconic binational river between the United States and Mexico, and
it provides freshwater to more than 13 million people. However, it is located in a water-stressed
region, and in 2001 the river failed to reach the Gulf of Mexico for the first time. WWF and Coca-
Cola are partnering with organizations to restore and build the resiliency of the river system,
especially along the border, where the river is recharged by water from Mexico as well as the
Mexican catchments that provide the water.
Along the border, WWF and both US and Mexican partners eradicated giant cane, a highly invasive
plant, to help foster a healthy river habitat and help with flood protection, conducted community
meetings, and held environmental workshops to engage women in conservation and rainwater
harvesting. Eight thousand native riparian trees were also planted along three miles of a key
tributary.
In 2016, in the Mexican catchments of the Rio Grande/Rio Bravo, WWF and Coca-Cola increased
the number of rainwater harvesting systems and trained individuals on how to maintain such
systems, reduced freshwater impacts from agriculture production, conserved headwater forests,
and began the construction of a wastewater treatment facility.
5. United States
Throughout 2016, WWF and Coca-Cola continued development of Field to Market: The Alliance for
Sustainable Agriculture, a multi-stakeholder initiative that works to create opportunities across the
agricultural supply chain for continuous improvements in productivity, environmental quality, and
human well-being. Field to Market provides a common framework for sustainability measurement
that farmers and the supply chain can use to better understand and assess performance at the
field, local, state and national levels. WWF and Coca-Cola provide collaborative leadership in Field
to Market, and participate in science-based, industry-wide dialogue. Field to Market is one of the
pathways to sustainably sourced corn as part of Coca-Cola’s sustainable agricultural sourcing
commitment for 2020.
The Hunan
provincial
government
has included
8 wetland
restoration
sites in its
recent 3-year
action plan for
Xiang River,
an important
step towards
establishing
local
commitment to
conservation of
the Basin.
12
Our Partnership in Numbers
— The Hunan provincial government has included eight wetland restoration sites in its recent
three-year action plan for Xiang River, an important step toward establishing local commitment
to conservation of the basin.
— The completion of wetland restoration near Junshan Rear Lake meant that protected wetlands
in Dongting doubled to 20,000 hectares.
— Protection of 350 hectares of forest in the Pasabién River basin in Guatemala continued
through control and prevention of forest fires.
— The Magdalena sugar mill achieved Bonsucro certification in 2016, making it the second mill
in Central America to achieve this standard. The mill is a Coca-Cola supplier in Guatemala that
sources from 7,000 hectares of sugarcane land.
— WWF staff worked with the Hunan Forestry Bureau to conduct trainings with 400 participants
on wetland park management and constructing wetlands for wastewater treatment.
Conclusion
World Wildlife Fund (WWF) and The Coca-Cola Company have worked together for nearly a decade
to conserve freshwater resources around the world and reduce the environmental footprint of the
company’s operations.
Through it all, we have remained committed to the power of partnerships in creating lasting
solutions to the world’s pressing conservation challenges. After all, water is essential to nature,
communities, and business. By engaging with local communities, businesses, and governments
in the areas in which we work, we hope to spur lasting momentum toward protecting water
ecosystems.
Over the years, we have learned many lessons when it comes to how to work better together
on implementing sustainable approaches to freshwater conservation. From understanding
organization structures and cultures to creating a coordinated vision with government partners,
partnerships require a solid foundation in order to realize conservation gains. Learn more about
building partnerships through our Engagement Checklist, which is designed to help guide NGOs
and corporations through the process of partnering together by visiting
http://wwfcocacolapartnership.com/building-partnerships/.
To learn more about our progress throughout the year and how you can join us, visit
wwfcocacolapartnership.com.
Right: © Audra Melton; Back cover: Amy Sparks Photography
http://wwfcocacolapartnership.com/building-partnerships/
http://wwfcocacolapartnership.com/
Creating a more water-secure future will require
collaboration with government, international financial
institutions, academia, industry, and civil society. WWF
and Coca-Cola are committed to helping address natural
resource challenges that impact fresh water and elevating
awareness of the power of collaboration to address global
challenges. Through partnership, greater scale and impact
can be achieved. To follow our progress and learn how to
join us, visit wwfcocacolapartnership.com.
http://wwfcocacolapartnership.com
The Environmental Roots of SD
Environmental Issues Today
Carson brought to our attention the delicate connection that we share with our surroundings, but more importantly, she awakened public interest and dialogue
The types of environmental issues that prompted Carson to act continue to persist today. Create a list of no fewer than five current environmental issues that challenge ‘business as usual’.
The Business Case for Sustainability
In-Class Activity
Select a multinational organization and answer the following questions:
What actions has the multinational taken to implement sustainability practices for bottom line results? Consider specific policies and practices. (Sustainable Actions)
What factors may motivate an organization to adopt a “lens of sustainability”? (Motivations)
Be prepared to share your results!
The Comprehensive Business Case for Sustainability (HBR, 2016)
How does sustainability benefit the bottom line?
Driving competitive advantage through stakeholder engagement
Improving risk management
Fostering innovation
Improving financial performance
Building customer loyalty
Attracting and engaging employees
Worldviews & Values
Weak & Strong Sustainability
Each of us has our own perspective about what supports the business case for sustainability, shaped by our worldviews and values
Two categories have been created to capture our sustainability-worldviews; weak vs. strong – however, in reality they exist on a spectrum; where do you fit in? How may this impact your management approach?
Equally, if not of greater importance is being able to effectively assess and communicate to other worldviews
Week 1: Summary & Review
An introduction to sustainable development (SD)
The environmental roots of SD
The business case for sustainability
Worldviews & Values
Schedule & Learning Objectives
A timeline of key events: from Carson to COP 25
Fundamental causes of unsustainability: a selection of theories
Introduction to assignment #1 (value – 10%)
A Timeline of Key Events
First Wave of Environmentalism
While industrialization brought unprecedented improvements in the quality of life for many people, by the 1960s, there was no denying its by-products: excessiveness, wastefulness and environmental/social degradation
In response, the international community, and national governments and began to take action – launching the first wave of environmentalism
Photos: Newsweek, 2015
A Timeline of Key Events
Second Wave of Environmentalism
By the 1990s it was becoming difficult to ignore the high price of this so-called “progress”, as global-scale environmental and social issues became a common topic of conversation
In response, a variety of global-scale treaties and protocols were formed including acknowledgement that business must play a key role in ensuring a more sustainable future
A Timeline of Key Events
The Paris Agreement
The Paris Agreement was introduced at the Conference of the Parties (COP 21) in Paris, on December 12th, 2015
The Paris Agreement’s central aim is “keeping a global temperature rise this century well below 2 degrees Celsius above pre-industrial levels” (UNFCCC, 2018)
What does this mean for business?
So, how did we get here?
What factors are responsible for unsustainability?
Fundamental Causes of Unsustainability
Malthus on Population
Among the early theories warning of environmental limits, in a 1798 essay on population, Thomas Malthus (1766 – 1834) suggested that overpopulation will result in a Malthusian Catastrophe
Was Malthus correct?
Fundamental Causes of Unsustainability
Ehrlich’s on Population
By the 1960s, a growing number of demographers were connecting rapid population growth and environmental degradation
Anne and Paul Ehrlich – two such academics – offered one such theory:
Where: I = environmental impact, P = population, A = affluence & T = technology
I = PAT
Complete the following table:
According to I=PAT, which country is the greatest environmental offender?
Country Population (in millions) Energy use per capita (kWh/year) I = PAT
China 1 412 2406
India 1 347 753
United States 325 9538.8
Brazil 210 1814
Nigeria 194 950
Philippines 106 699
Canada 36.8 9825
Data from the World Bank (2018)
Why may energy use per capita fail to provide an accurate surrogate measure for affluence and technology?
Fundamental Causes of Unsustainability
Garrett Hardin & the Tragedy of the Commons
Garrett Hardin reflects on two theories:
Adam Smiths’ “Invisible Hand” – population will stabilize itself
Do we continue in the spirit of Adam Smith or will this lead to our demise?
Forster Lloyds’ ‘Tragedy of the Commons’
Example of raising cows in a common pasture
Masai cattle pen near Masaï Mara National Reserve, Kenya (Yann-Arthus Bertrand, 2009)
Fundamental Causes of Unsustainability
White: an Alternative View
The Historical Roots of Our Ecological Crisis” (1966) was a controversial speech where Lynn White Jr. suggested;
“…development of modern science and technology coupled with a literal interpretation of Western Christianity is responsible for the ecological crisis.”
Fundamental Causes of Unsustainability
White – 1. Science & Technology
The evolution of agriculture – from medieval ploughs to the Green Revolution
“…technological advances will continue to support unfettered (unlimited) consumption of energy, food and stuff….genetically modified organisms, space colonization – none of these advances, if that is what they are, are going to rescue us from ourselves” (Buck, 2013)
What do you think; is technology the solution?
Fundamental Causes of Unsustainability
White – 2. Literal Interpretation of Christianity
Humankinds understanding of nature was developed in light of Christian dogma (recall scientific revolutionaries of the Renaissance, such as Copernicus & Galileo)
Further, a literal interpretation of Christianity would suggest that humans are the most valuable creation of God, but are not part of nature
“God said….have dominion over the fish of the sea and over the birds of the air and over every living thing that moves upon the earth.” (Genesis I:28)
What is your version; what is the fundamental driver of unsustainability today; and what is the solution?
Week 3: Environmental Economics in Review
Capitalism: a Brief Introduction
In class, I proposed four modifications to capitalism that, if embraced, could help pave the way to a more sustainable future:
Let Consumers make informed decisions
Value nature’s “free” services
Reconsider socially-efficient solutions
Adopt a more comprehensive measure of development
Your Turn!
Select a product or service. Consider the entire value chain while comparing and contrasting the market cost and true cost.
Schedule & Learning Objectives
Integrating sustainability
Introduction to Assignment #2 & country selection
Course project introductions – check in!
We have clearly defined the business case for sustainability… shall we re-fresh our memories!?
Why business should integrate sustainability into strategy is clear; so, let’s turn our focus to the next big question: how
Various approaches have been put forward, including the Roadmap for Integrated Sustainability, which was created by the United Nations Global Compact
Integrating Sustainability
An Introduction
2020 Roadmap for Sustainability
Companies typically move through the stages upwards – although they may have projects or functions spread across phases
Let’s consider some examples
For more information, check out Bob Willards’s description of the 5 stage sustainability journey
Integrating Sustainability
Sustainability Stages Model
Strategy
Deliberate choices/goals that position the business for sustainable competitive advantage
Operations
Processes or management systems in place to achieve goals
Culture
“Culture eats strategy for breakfast” – Peter Drucker
Integrating Sustainability
Three Lenses
According to the Ivey School of Business, strategy is “how an organization creates and captures value in a specific product market.” (2018)
There is no single path to adopt an integrated sustainable business strategy but there are specific steps and considerations that can make it more likely to succeed
Let’s consider an example!
Integrating Sustainability
Strategy
Establish credibility
Understand your business environment
SWOT analysis, stakeholder mapping & risk assessment
Internal engagement
Change management
Spread the word
Integrating Sustainability
Strategy: Critical Steps for Integrated Sustainability
Let’s consider sustainability champion: Interface
Summary & Next Steps
What is a corporate strategy and how best to integrate sustainability
Next class – Energy
Look at key topic #1: energy and sustainable operations
Complete the assigned reading via E-Conestoga
Complete and submit assignment #2
Review instructions for the Case Study
Week 4 in Review: a Sustainable Business Strategy
Let’s consider sustainability champion Interface as an example of how best to achieve integrated sustainability! This purpose-driven organization has utilized all five steps, as described last week.
Schedule & Learning Objectives
Energy 101
Energy: Business Critical
Case Study: AB InBev & Veriform
Environmental Management Systems (EMS)
Introduction to Case Study
Energy 101
Energy: it makes the world go ‘round!
How would you life change with the end of cheap oil?
Energy: Business Critical
Energy is business critical:
Represents a significant cost
Represents a variable cost
Annual Revenue Conestoga McDonalds Hilton 0 25 10 Annual Energy Expense Conestoga McDonalds Hilton 2 0.5
Energy & Sustainability
Global energy use is a major contributor of unsustainability, including (but not limited to!):
Social injustice – paradox of plenty/resource curse
Land-use change
Greenhouse gas emissions (~80%), which cause global warming
International Efforts
In 1995 the United nations Framework Convention on Climate Change (UNFCCC) held the first Conference of the Parties (COP) in an effort to address global warming
In 1997, the Kyoto Protocol was opened for signatures
Today, the Paris Agreement requires nations to reduce emissions of global-warming causing greenhouse gases
Governments have responded by creating regulations and rules to encourage compliance with the Paris agreement – some corporations are acting on their own
Case Study: Energy Sustainability at AB InBev
A variety of projects and policies have been adopted (A Better World campaign) to support energy reduction efforts
Guiding their sustainability efforts are 8 of the SDGs
While a variety of factors motivate their efforts… “more beer sold!” is the driving force
Case Study: VeriForm
Local metal fabrication company established in 1996 and located in Cambridge, ON
Manufactures custom parts for a variety of industries – mining, forestry and renewable energies
Process for improvement:
Baseline
Benchmark
Recommendations (supported by financials)
Environmental Management Systems (EMS)
An EMS is a set of management processes and procedures that allow an organization to analyze, control and reduce the environmental impact of its operation and services (EPA, 2013)
An EMS can be part of quality management or may stand alone
An EMS does not dictate a specific level of environmental/social performance; each company will have a unique EMS based on their goals/business model
Environmental Management Systems (EMS)
The most well known and arguably most frequently used EMS is the ISO 14000 (1996) family
It is “…a series of international standards on e.m. It provides a framework for the development of both the system and the supporting audit program” (ISO, 2017)
The total number of ISO 14001 certifications in 2015: at least 300 000, in 171 countries (ISO, 2017)
What are benefits associated with certification?
In an increasingly global business marketplace, what may be some benefits/drawbacks of certification?
Does the organization that you selected for the course project have an environmental management system?
Is there evidence of the Plan, Do, Check, Act cycle for continuous improvement?
How does the organization measure sustainability? (i.e. what metrics do they measure?)
Is ISO 14001 part of the EMS strategy? Or, are they using another framework?
Sustainable Operations Planning Stage
Step 1 – Baseline
Baselining is the process of assessing “where you are at”
There are various tools that can be used, including process mapping, checklists and data collection
Let’s look at an example!
“You can’t manage what you don’t measure!”
Sustainable Operations Planning Stage
Step 2 – Benchmark
Benchmarking is the process of assessing where peers and leaders are at
Process benchmarking is when you research leading efforts within the same industry, while strategic benchmarking is when you focus research on a leader
Let’s look at an example!
“No need to re-invent the wheel”
Sustainable Operations Planning Stage
Step 3 – Recommend
Based on your research, identify best practices that may be applied
Assess for fit: remember, you can’t put a square peg in a round hole
Assess for feasibility: recommendations must be cost effective
“Customize best practices”
By implementing ~45 energy- and waste-saving projects between 2006 – 2008 at a cost of $46 186 Rak reduced energy costs by $89 152/year
Project Cost ($) (A) Annual Savings ($) (B) ROI
(B/A) Payback
(A/B)
Replace lighting 8 000 20 916 2.61 (260%) .38 years (4.6 months)
Raise power factor (machine efficiency) 11 285 24 118
Programmable thermostat 1 200 13 911
Heating disconnect on bay doors 1 200 7 893
Turn off peripherals at night 250 2 978
Print double-sided 320 1 200
Introduction to the Case Study
Goal: the case study requires you to think like a manager – can you save money by improving operational sustainability?
Work through steps required in an EMS;
Baseline
Benchmark
Recommendations
Value – 20%
Due March 23rd
Summary & Next Steps
Why is energy business critical?
What is an EMS and how does it support sustainable operations?
Next class – GHG/Waste Management
Complete the assigned reading via E-Conestoga
Work on case study/CP
Why is energy typically the metric of greatest concern to organizations looking to improve upon their sustainability?
What processes may an organization use to guide their energy management strategy?
5 – Energy: in Review
Schedule & Learning Objectives
The Greenhouse Effect
Greenhouse gases
Climate Change & Business: Impacts & Issues
United Nations Framework Convention on Climate Change
Paris Agreement & Mechanisms for Change – Carbon Markets
Impact on Business
Reporting on Greenhouse Gas Emissions
Energy and Greenhouse Gases
Often it is assumed that energy consumption is an accurate proxy of GHG emissions; however, while they are correlated it is important to measure both metrics separately
Energy
Greenhouse gases
Greenhouse Effect
The naturally occurring greenhouse effect keeps Earth’s average temperature at 15ᴼC – without it we would experience an average temperature of – 18ᴼC and life as we know it would not be possible!
Following industrialization, concentrations of greenhouse gases have increased, which has led to global warming and climate change
Greenhouse Effect
Greenhouse Gases I
Greenhouse Gas Pre-Industrial Levels (1800s) Current Levels (2013)
Carbon Dioxide (CO2) 280ppm 395ppm
Methane (CH4) 715ppb 1774ppb
Nitrous Oxide
(N2O) 270ppb 323ppb
Chlorofluoro -carbons
CFCs & HFCs 0 553ppt
(Adapted from: NOAA, 2013)
Greenhouse Effect
Greenhouse Gases II
The contribution of individual GHGs to global warming depends on properties intrinsic to each gas, including:
Residency (R.) time – how long the gas remains in the atmosphere
Absorption efficiency – how much heat the gas can absorb
Residency time + Absorption eff. = Global warming potential (GWP)
Abundance – how much of the gas exists in the atmosphere
GWP + Abundance = Relative Contribution
Greenhouse Effect
Greenhouse Gases III
Greenhouse Gas Current Levels (2013) R. Time Abs. GWP
Carbon Dioxide (CO2) 395ppm variable (50 yrs) low 1
Methane (CH4) 1774ppb 15 yrs high 21
Nitrous Oxide
(N2O) 323ppb 100+ yrs high 310
Chlorofluoro -carbons
CFCs & HFCs 553ppt 50 – 100 yrs very high 5 000
Relative Contribution
68%
15%
6%
11%
Climate Change & Business
Impacts & Issues
ghg
United Nations Framework Convention on Climate Change (UNFCCC)
Established in 1992, the UNFCCC is “a framework for international cooperation to combat climate change by limiting average global temperature increases and the resulting climate change…” (UNFCCC, 2014)
Paris Agreement
Re-focus and strengthen commitments under the Kyoto Protocol’s second commitment period
Nationally determined contributions
Funding mechanism for developing nations
Flexibility in achieving goals: joint implementations, carbon mechanisms, etc.
Do some research!
Provide two reasons why the Paris agreement may fail and two reasons why the Paris agreement may succeed
Impact on Business
So, what does this all mean for business?
The primary process for reducing greenhouse gas emissions is for each country to prepare and communicate national climate plans
These plans will provide businesses and investors with a forecast of the regulatory environments in which they operate or seek to operate
Incentive for low carbon innovation and investment
Carbon Markets: Cap & Trade vs Carbon Tax
Carbon markets allow business to determine how best to reduce greenhouse gas emission
There are different methods including cap and trade (Ontario until 2018) and carbon tax (British Columbia)
Reporting on Greenhouse Gases
So, why are more corporations reporting on greenhouse gases every year?
Regulatory requirements
As part of internal management efforts (ISO14001, for example!)
Consumer demand for transparency and corporate social responsibility
Investor demand for transparency: the role of the CDP
Reporting on Greenhouse Gases
A variety of standards (ISO 14064) and protocols (Greenhouse Gas Protocol) exist – the government has their own method, as well
Key considerations:
Define the operations boundary: the sources of GHGs that will be included in the inventory
Define the organizational boundary: the parts of the organization (facilities, equipment, etc.) that will be included in the inventory
Data collection
Reporting on GHG Emissions
1. Operational Boundary
Scope 1 & 2 are mandatory components of a GHG inventory
Scope 3 is optional; but, should not be ignored!
Reporting on GHG Emissions
1. Operational Boundary II
Consider the issues and opportunities associated with Walmart’s GHG inventory:
Why may it be difficult for Walmart to provide an accurate report on GHG emissions?
What opportunities exist for Walmart and their GHG reporting?
Sales Scope 1 Scope 2 Scope 3 2.5 7.5 90
Reporting on GHG Emissions
2. Organizational Boundary
% of GHG Emissions Attributed to the Facility
Facility % Ownership Operational control? Equity share approach Control approach
Company owned 100 Yes 100 100
Leased 0 No 0 0
Leased 0 Yes 0 100
Joint venture 50 No 50 0
Joint venture 50 Yes 50 100
Reporting on GHG Emissions
3. Collecting Data
Emission Source Scope Data Source Examples
Stationary fuel consumption (i.e. natural gas or oil) 1 Invoices from utilities or fuel providers
Mobile fuel consumption (i.e. transportation of company vehicles) 1 Vehicle fuel consumption logs /read odometer at regular intervals
Process emissions (metals industry) 1 Consumption records of relevant inputs, such as lime, coke, etc.)
Fugitive emissions 1 Refrigerant recharge records/industry averages
Purchased electricity 2 Invoices from utilities
Purchased goods and services 3 Data from suppliers or LCA databases
Employee commuting 3 Survey employees/research
Reporting on GHG Emissions
3. Collecting Data II
Estimation of missing data should be avoided; however, there are no clear guidelines on dealing with missing data
Some examples of how to deal with missing data:
Use an average of the previous and following months’ values
Use the value from the same month during the previous year
So, now that we have the data, we are ready to calculate the GHG emissions!
Calculating GHG Emissions
There are two general approaches used to calculate GHG emissions:
Direct Measurement Approach: monitoring GHG concentrations and flow rate
used by very large emitters only
Emissions Factor Approach: used by most organizations
Emissions factors and GWP are published by leading reporting organization (GHG Protocol, etc.) and are updated to reflect advances in science/changes in electricity mix
CO2e = Amount x Emission Factor x GWP
Summary & Next Steps
What is the greenhouse effect, how is it connected to global warming/climate change and why it this business critical?
What motivates organizations to manage ghg?
How can an organize measure and monitor ghg?
Next class – Waste Management
Look at key topic #3: Waste and sustainable operations
Complete the assigned reading via E-Conestoga
Show up prepared to conduct an in-class waste audit
Week 6 – in Review
Energy: it makes the world go around!
Why do businesses care about energy management?
What may businesses do to better manage their energy?
Greenhouse Gas Measurement in-class activity
Schedule & Learning Objectives
An introduction to the “waste issue”
The business case for waste sustainability: cases
Waste audit
Products are created: Consider your laptop: for the pound of electronics that it contains, 8 000 pounds of solid waste was created somewhere in the world
Solid waste – any unwanted or discarded material that is not liquid or gas – amounts to 1.3 billion tonnes/year and costs $205 billion (World Bank, 2018)
Products are disposed: there are many ways in which we dispose of unwanted materials – nearly all have a negative impact
Global Waste Problem
Trash Mountain in Ghazipur, east Delhi (Hindustantimes, 2017)
Why may a business want to reduce waste?
Reduce/avoid costs
Increasing regulation
Innovation/capture new markets
Scarcity of resources
Declining landfill capacity
The Business Case for Waste Management
Operationalizing WM: Waste Audits
Waste audits can be used to generate a baseline
Waste audits can answer a variety of research questions
Waste audits must include a representative sample of waste
How to conduct a waste audit?
Determine the purpose
Organize yourself! Be sure to have the proper equipment and roles are assigned
Analyze your results
Audit Results
Create a pie chart that displays the categories of waste found in each receptacle/stream of refuse (garbage, paper and bottles/cans). Be sure that each chart is clearly labelled and includes appropriate tiles. Based on your findings, provide basic analysis that identified and explains any trends, anomalies, etc.
Based on the audit results, identify:
Which waste stream is used most frequently and least frequently
Which waste stream is used most effectively and least effectively
List three specific actions that could help to improve use of the three-bin sorting system
Summary & Next Steps
“Only we humans make waste that nature can’t digest” (Captain Charles Moore)
Waste is an inefficiency and prevention is the best solution
A waste audit provides information that may be used to support more effective resource use and management
Next class: Sustainability Metric – Water
Complete reading
Course Project/Case Study
Waste – in Review
Why would a business conduct a waste audit?
Many factors may motivate an organization to manage their waste; including?
Interesting in working in this field?
Week 11: in Review
Sustainability requires an embedded approach – treating it as an ‘add-on’ will not help to achieve the desired results
There are many tools aimed to help embed sustainability, including the Embedding Wheel
Schedule & Learning Objectives
LOHAS: is this you?
Marketing & Sustainability: a Great Green Opportunity
8 Steps to Marketing for Sustainability
Next class: presentations!
Lifestyles of Health & Sustainability (LOHAS)
How Lohasian are you?
This does not render you a “tree-hugger”, it means that you are part of the growing market segment of individuals that value health/sustainability, which is a key component of happiness, as captured in the most recent World Happiness Report
Marketing & Sustainability: a Great Green Opportunity
Demand for more sustainable products and services is growing
$25.5 billion
$75 billion
$90 billion
$33 billion
$128 billion
$325 billion
1. Identify your Sustainability Opportunities
Consider why it is that your consumers want you to adopt sustainability and if it aligns with your broader corporate strategy
2. Build on Current Green Strengths
Some products or services already have green attributes that may be underappreciated or not recognized at all
Brita – a very successful water filtration company – re-branded it’s products once they realized that environmental issues shaped consumer preferences more than taste
3. Solidify your “defense” before going on the “offense”
Marketing sustainability may attract extra scrutiny by environmental groups, consumers, NGOs, etc.
Pay attention to eliminating gaps in environmental practices and performance
Read more about this amazing company, here!
4. Deepen understanding of Customers’ needs, attitudes and buying behaviours
LOHAS
Mean Greens
Drifters
Conventionals
Apathetics
Dream Greens
Naturalites
How green are people, really? Different consumer segments exist as related to sustainability.
5. Stay Ahead of the Pack
Anticipate what customers will think and stay ahead of your competitors
Tesla spends 5 – 10% of the value of their yearly revenue on R & D (US 1.5 billion in R & D in 2019)
6. Take it Public
Price: Environmental premiums may be charged for some products… but not most. Value and performance remain the most important components – “green” is a third button consideration
Relevance: Messaging must be aimed at tangible efforts and be relatable on a local level
Authenticity: Volkswagen’s clean diesel…
Validation: to legitimize their claims, many organizations are using eco-labels – a stamp of approval from a third party source
Partnerships: Another way to legitimize claims may be to align with highly credible groups that are willing to publicly vouch for your efforts
7. Change Customer Attitudes and Behaviours
Engage, educate and empower consumers to make more informed decisions… to purchase your products/services
Interested in learning more… check out this link
8. Create Product Infrastructure
Employ systems thinking to ensure that products and services will flourish
An Introduction to Sustainable Development
Defining Sustainable Development
SD has become common terminology; however, it has taken on a variety of meanings
(Think) Develop a definition of SD
(Pair & share) Discuss with the person sitting beside you – arrive at a common definition
To get started you may want to consider questions such as:
Why is SD important and what needs to happen to ensure a sustainable future?
How do organizations, government and community ensure a sustainable future?
“Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs” (WCED, 1987)
“Environmental sustainability is about using natural resources in a way that doesn’t threaten future generations’ ability to use those resources “ (WBCSD, 2011)
“It is about improving the standard of living by protecting human health, conserving the environment, using resources efficiently and advancing long-term economic competitiveness” (Environment Canada, 2013)
While there are common themes there is no universal definition of SD
An Introduction to Sustainable Development
Definitions of Sustainable Development
The Environmental Roots of SD
Introducing Rachel Carson
“Miss Rachel Carson’s reference to the selfishness of insecticide manufacturers probably reflects her Communist sympathies, like a lot of our writers these days. We can live without birds and animals, but, as the current market slump shows, we cannot live without business. As for insects, isn’t it just like a woman to be scared to death of a few little bugs! As long as we have the H-bomb everything will be O.K.” (Editorial – New Yorker)
The Environmental Roots of SD
Environmental Issues Today
Carson brought to our attention the delicate connection that we share with our surroundings, but more importantly, she awakened public interest and dialogue
The types of environmental issues that prompted Carson to act continue to persist today. Create a list of no fewer than five current environmental issues that challenge ‘business as usual’.
The Business Case for Sustainability
In-Class Activity
Select a multinational organization and answer the following questions:
What actions has the multinational taken to implement sustainability practices for bottom line results? Consider specific policies and practices. (Sustainable Actions)
What factors may motivate an organization to adopt a “lens of sustainability”? (Motivations)
Be prepared to share your results!
Worldviews & Values
Weak & Strong Sustainability
Each of us has our own perspective about what supports the business case for sustainability, shaped by our worldviews and values
Two categories have been created to capture our sustainability-worldviews; weak vs. strong – however, in reality they exist on a spectrum; where do you fit in? How may this impact your management approach?
Equally, if not of greater importance is being able to effectively assess and communicate to other worldviews
Introduction to the Course Project
Goal: to better understand how current social, economic and environmental issues are connected with business
Select any topic of interest to you and follow it in the media – how may this issue present challenges/opportunity to aspiring business managers?
Value – 30% (Report 20%, Presentation 10%)
Due Week #13
Summary & Next Steps
Provide a definition of sustainable development
How are environmentalism and sustainability connected?
Why may a business choose to implements sustainable practices? i.e. What is the business case for sustainability?
What motivates the manager in you to embrace sustainability?
Next class: Towards Sustainable Development
Complete assigned readings via E-Conestoga
Review instructions for Assignment #1