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Sustainability: What It Is and How to Measure It
ISBN-13: 9781547416608 / Angielski / Miękka / 2018 / 335 str.
Sustainability: What It Is and How to Measure It
ISBN-13: 9781547416608 / Angielski / Miękka / 2018 / 335 str.
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This series includes professional unbiased books on corporate topics with an emphasis on governance, corporate leadership, and sustainability.
In his new book, Sustainability: What It Is and How To Measure It, consultant and author Gib Hedstrom wisely observes the salient selling point for many businesses when ruminating on how to address sustainability. From 2015 to 2030 the global middle class will double in size from 2.5 billion people to about 5 billion people. As Hedstrom wryly notes, in most of his meetings with corporate boards, eyes begin to glaze over when presented with some of the dry facts about sustainability but the growth of the global middle class grabs their attention.
Hedstrom's observation underscores what noted economist and professor Jefferey Sachs has posited regarding sustainability - economic policy works best when it focuses simultaneously on three big issues: first, promoting economic growth and decent jobs; second, promoting social fairness to women, the poor and minority groups; and third, promoting environmental sustainability.
Thus, the key challenge is how to understand the sustainability concept in its many guises, emphasizing the opportunity side of the equation (economic growth and jobs), and then presenting a complete system that enables a company to accurately measure itself. It's a compelling two-step process that could be the one-stop shopping many executives need in order to tackle what may be the most pressing issue of our time.
Hedstrom comes to the task unusually qualified: he spent 20 years at consulting firm Arthur D. Little, advising CEOs and board members about how to handle thorny environmental and business challenges. From 2004, with the establishment of his eponymous consulting firm, Hedstrom continues to assist the corporate community on sustainability issues. He also has served as program director for two sustainability committees at The Conference Board, which is how I came to know and appreciate Gib's unique capabilities and thought leadership.
Key to the book is Hedstrom's proprietary Corporate Sustainability Scorecard(TM), a C-suite rating system developed over the course of 20 years and employed by more than 70 Fortune 500 companies. Whether you are new to the field of sustainability or an experienced veteran, Sustainability: What It Is and How To Measure It, may prove to be the invaluable reference book on the most challenging issue of our time.
--Michael Fanning
Former global head of sustainability, Michelin Group, and
Former president, Business Partnership Foundation, USC Darla Moore School of Business
Part 1 1
Chapter 1: Sustainability in 2020 and Beyond 3
The Drivers: Economics 101 3
Sustainability: Four Big Buckets 5
The Huge Business Opportunity 6
Mixed Signals 7
How to Get Started 8
Chapter 2: Why Bother? 11
Opportunity of the Century 11
Global Risk Review-WEF 13
But Wait-Delhi, Delft, Des Moines 13
Why Have Companies Pursued ESG? 14
The Business Case for Sustainability 15
Investors Speaking Up 16
Customers Speaking Up 18
Approaching the Tipping Point 18
Chapter 3: Terminology-What Does Sustainability Really Mean? 21
The Jargon 21
What Is Sustainability? 22
ESG and the Triple Bottom Line 22
Two Sides of the Coin: Stop and Go 23
From Farm to Fork 24
Today's Sustainability Conversation 26
Chapter 4: What Does Sustainability Mean to Your Industry? 29
The 30,000 Foot View 29
The Common Denominator: More Profit-Less Stuff 30
Tomorrow's Industry Sectors 31
Tomorrow's Industry Sectors-Today 32
Counterpoint: The Skeptics ... 34
Positioning for Growth 35
Chapter 5 : Governance and Leadership: The "G" in ESG 37
The Situation: Governance and Sustainability 38
Governance: The Key Elements 38
Investors' Dilemma: Failing the 80/20 Rule 40
Governance at a Glance: Tomorrow's Leaders Today 41
The Scorecard: Governance and Leadership 43
Chapter 6: Strategy and Execution: The Missing "S" in ESG 45
The Situation: Beyond ESG 46
Strategy: The Key Elements 47
The Opportunity: Strategy and Sustainability 47
Strategy and Execution at a Glance: Tomorrow's Leaders Today 49
The Scorecard: Strategy and Execution 51
Chapter 7: Environmental Stewardship: The "E" in ESG 53
The Situation: Overdose on Environmental Issues 54
Materiality Assessment 54
Environment: The Key Elements 57
Environmental Stewardship At a Glance: Tomorrow's Leaders Today 58
The Scorecard: Environmental Stewardship 59
Chapter 8: Social Responsibility: The "S" in ESG 61
The Situation: Looking Back-Not Looking Ahead 62
Social Responsibility: The Key Elements 63
The Opportunity: Glass Half Full 64
Social Responsibility at a Glance: Tomorrow's Leaders Today 65
The Scorecard: Social Responsibility 66
Chapter 9: The New ESG Regulators 67
Investors: The New EPA? 67
The Global Regulatory Landscape 69
Private Sector Collaborations 73
The Impact of Millennials 73
Summary 74
Part 2 77
Chapter 10: Introduction to the Corporate Sustainability Scorecard-C-Suite Rating
System 79
This chapter outlines: 79
What Is the Corporate Sustainability Scorecard? 79
Why this Scorecard? 80
Who Is the Scorecard Intended for? 81
How Is the Scorecard Structured? 82
The Four-Stage Transformation Model 82
How Should the Scorecard Be Used? 85
Will the Scorecard Change over Time? 86
Organization of Part 2 87
Chapter 11: Vision, Mission, and Values 89
Public Statements 89
Private Actions to Reinforce Sustainability in Vision, Mission, and Values 93
External Recognition 94
How Do Companies Stack Up? 97
Chapter 12: CEO Leadership 101
CEO Engagement with Sustainability 102
Managing Board Agendas 106
Structuring the Sustainability Organization 107
How Do Companies Stack Up? 108
Chapter 13: Board of Directors Leadership 111
Board of Directors Sustainability Structure and Resources 112
Board of Directors' Assurance Processes 115
Board of Directors' Commitment of Time to Sustainability 117
How Do Companies Stack Up? 119
Chapter 14: Goals and Metrics 121
Goal-Setting Process 121
Time Horizon of Sustainability Goals 125
Content and Impact of Sustainability Goals 127
How Do Companies Stack Up? 131
Chapter 15: Culture and Organization 135
Management Accountability for and Attention to Sustainability 136
Key Culture Indicators Related to Sustainability 138
Sustainability Organizations 139
How Do Companies Stack Up? 142
Chapter 16: Stakeholder Engagement 145
Why Engage? 146
With Whom to Engage? 147
What to Engage On? 150
How and When to Engage 152
How Do Companies Stack Up? 153
Chapter 17: Disclosure, Reporting, and Transparency 157
Disclosure of Sustainability Risks, Posture, Programs, and Plans 158
Reporting of Sustainability Progress and Performance 160
Transparency 163
How Do Companies Stack Up? 166
Chapter 18: Strategic Planning 169
Sustainability Positioning and Strategy 170
Business Drivers for Sustainability Within the Company 171
Sustainability Inputs to Corporate Planning Process(es) 175
How Do Companies Stack Up? 178
Chapter 19: Innovation, Research, and Development 181
Role of Sustainability and Innovation 182
Processes and Methodologies 185
Sustainable Innovation Investments 187
How Do Companies Stack Up? 188
Chapter 20: Customers and Markets 191
Sustainability Linkage to Customers 192
Core Approach 193
Shaping Future Market Opportunities 195
How Do Companies Stack Up? 198
Chapter 21: Products, Services, and Solutions 201
Basic Product Positioning 201
The Product Development Process 204
Existing PSS 205
How Do Companies Stack Up? 208
Chapter 22: Environmental Footprint-Operations 211
Managing Purchased Resource Inputs 212
Managing Own Physical Footprint 217
Managing Nonproduct Outputs 218
How Do Companies Stack Up? 221
Chapter 23: Environmental Impacts-Supply Chain 225
Posture and Management Processes 226
Addressing the Most Material Supply Chain Environmental Impacts 229
Nature and Extent of Supplier Sustainability Partnerships 233
How Do Companies Stack Up? 234
Chapter 24: Environmental Impacts-Products 237
Overall Product Stewardship Approach 237
Product Design Process 240
End-of-Life Product Management 245
How Do Companies Stack Up? 247
Chapter 25: Own Operations-Workplace 251
General Workplace Environment 251
Core Workplace Programs 253
Sustainability Capability-Building Initiatives 256
How Do Companies Stack Up? 257
Chapter 26: Supply Chain Social Impacts 261
Posture and Management Processes 261
Addressing the Most Material Supply Chain Impacts 264
Supply Chain Partnerships 266
How Do Companies Stack Up? 267
Chapter 27: Community Investment 271
Community Policies and Programs 272
Community Investments 274
Benefits to Society 275
How Do Companies Stack Up? 277
Chapter 28: Conclusion: Tomorrow's Elite Corporation 281
Fit: Visualizing Success 281
Trim: Decoupling Growth and Profitability from Resource Intensity 282
Resilient: Capacity to Innovate Among Disruptions 284
A Few Words on Climate Change 285
The Path Forward 286
Appendix A: Definitions 289
Index 297
Gilbert S. Hedstrom, Hedstrom Associates
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