Month <span class=April 2015" src="/wp-content/uploads/2014/04/cropped-office-building-secondary-1.jpg">

Month April 2015

Best of the Blog – April 2015

The SSC Team April 30, 2015 Strategic Sustainability Consulting No comments

Each month, we highlight some of our more popular content on the SSC blog!

In case you missed them, here's a round-up of our most popular blog posts from this past month. These are the articles that received the most attention from our online audience. Check them out! 

  1. 3 Skill Sets Every Sustainability Consultants Should Have
  2. Puma, Adidas, Under Armour - Who Has the Best Sustainability Sustainability
  3. Do Sustainability Consultants Need to Blog?
  4. Sustainability Consulting: One Size Does Not Fit All
  5. 10 Steps to Building a Better Business Case

If you like an article, please consider sharing it online via your favorite social media platform. Helping us grow our audience is the #1 way you can show your support for the work that we do.

Workplace Movement Toward Environmental Sustainability – Pt. 1

The SSC Team April 28, 2015 Tags: , , , , , , , Strategic Sustainability Consulting No comments
By: Alexandra Kueller Last week we introduced the Retail Industry Leaders Association’s (RILA) brand new Retail Sustainability Management Maturity Matrix. The Matrix hopes to be a tool that will be used by sustainability executives, individual companies, and industry-wide. We also noted that while the Matrix is designed with the retail industry in mind, we think that is has a wide applicability beyond just the retail sector. Today we are focusing on three of the seven sectors that are featured in the Matrix. Hoping to provide a more in-depth look at how RILA hopes to benchmark across the industry in terms of environmental sustainability, we are going to look at what it would take for a company to become a leader in that sector.

Strategy and Commitment

Before a company can begin their sustainability journey, they must first have some sort of sustainability strategy, right? And if that strategy is weak, how strong will a company's goals be? How well will the company show executives that sustainability is necessary? What this section hopes to capture is how well a company is addressing environmental sustainability at a governance level. A leading company in this sector will have a sustainability strategy that is aligned across departments and integrated into corporate strategy, has defined comprehensive and aggressive goals, incorporates executives from all relevant parts of the business, and more. The Strategy and Commitment sector has five different dimensions:
  • Strategy
  • Materiality/Risk Identification
  • Goals
  • Governance & Executive Engagement
  • Incentives

People and Tools

Sustainability cannot happen without people. Whether the people are stakeholders or employees, sustainability is a collaborative process that needs to have everyone involved from the beginning. While the people involved in your sustainability process is important, so are the tools you use. If you don't have the right set of tools and the right people, your company might be falling short in terms of their sustainability. According to RILA, in order to be leading this sector, a company must demonstrate that they have a dedicated team to creating and investing in sustainable innovations, incorporate feedback from key stakeholders into sustainability strategy, provide a collaborative forum for employees to engage in, and more. The People and Tools sector has four different dimensions:
  • Stakeholder Engagement
  • Employee Engagement
  • Funding Mechanisms
  • Business Innovation Mechanisms

Visibility

You have your sustainability strategy in place and have assembled a team of employees that have the right set of tools to tackle sustainability, so what's next? Choosing sustainability metrics focused on all material aspects. Using 3rd-party standards in your sustainability reporting. Having sustainability be a focus in marketing campaigns. Partner with other organizations to continue to identify room for improvement. These are just some of the ways RILA says companies can become better sustainability leaders while promoting their sustainability. The Visibility sector has five different dimensions:
  • Metrics & Measurement
  • Reporting & Communicating
  • Point-of-Purchase Consumer Education
  • Marketing Campaigns
  • Collaborative Involvement
Last fall we attended the annual RILA Sustainability Conference. Read about some of our thoughts on the conference here.

Choosing Sustainability Management Software for Your Business

The SSC Team April 23, 2015 Tags: , , , Strategic Sustainability Consulting No comments

This article was written as an expansion of our white paper “Choosing Sustainability Management Software for your Business” published in July 2011.  If you’re looking for information on how to make your software selection, check out the full article.  If you just want to make sense of this particular topic, keep reading. Enjoy:

Now that you’ve decided to purchase sustainability software, an important related decision is whether or not you want to do the implementation work in-house or if you want to bring on a consultant to help out.  Making the right decision will be critical to your overall project success as well as impact the total cost of ownership for your solution.  And depending on your specific situation, either answer can be the right answer.  This article covers four key considerations:  Culture, Cost, Capabilities and Confidence.

Culture

Your business culture is an important first consideration.  Either you are consultant friendly or you prefer to do projects internally.  Making a decision that fits your culture and is consistent with your values will be important throughout the project.  That’s not to say that you might not go in the other direction for a specific project, or even choose a hybrid approach to delivery; just be true to yourself, as that will contribute to project morale for the entire team regardless of who signs their paycheck.  

A hybrid approach may provide the best of both cultures for you without offending the purists on either side.  Bring in specific subject matter expertise that you don’t already have in-house and then match it up with the right internal members of your Green Team to deliver the project.  On a high performing team, your consultants should be looking to train the internal employees on all the ins and outs of the system so that eventually your people can take over and run with the operational system. A good consultant instills confidence that they provide specialized expertise and trust that you will feel comfortable to call on them for further assistance in the future, instead of keeping them on the project unnecessarily for extended or prolonged periods of time.

Cost

After culture, cost is a major factor in the DIY vs. consultant decision.  For many firms – large or small – the preliminary inclination is to try and do the work internally.  The general premise is that it will be cheaper to use people that you already are paying because there is no additional cash out of pocket like there would be with an external consultant.  Consultants seemingly come with a high, upfront, fixed cost as your employee costs are already embedded in your budget.  Don’t forget to account for the “opportunity cost” of your internal employees – after all, they would be working on something else valuable for your firm if they weren’t picked for this project.

Beyond the opportunity cost consideration, looking only at the incremental expense doesn’t address an important aspect of choosing your own internal people to do the work: Do they actually have time?  Presumably, all of your existing employees have a “day job” that brings them to work every day.  Some of them are probably even doing two or three different jobs during a regular workday.  Determining if you actually have the available slack time within your existing team members is an important determination.  After all, if you’re on a deadline and your employees just can’t carve out enough time to meet that target, it may end up costing you more money to bring consultants in later than it would have if you had engaged them at the start of your project.  If you engage them in the beginning, the consultants are competing for your business; if you wait to bring them in until later in the project, they know you are hiring them to help bail you out so the leverage has shifted into their favor.

A final cost consideration when hiring a consultant (or going the “cheaper” internal route) is that “you get what you pay for.”  This can be taken as advice that the lowest cost doesn’t always provide you with the best result – nor for that matter does the highest cost.  Just make sure that the cost is right for the work being performed and for your situation.  That brings me to the second aspect of “you get what you pay for” – which is to MAKE SURE you get what you paid for.  Pay your consultant based on their delivery of the results you are looking for on the project, not just because they send you an invoice.  If possible, get a consultant to sign up for a risk-reward component to their payment so that they will be incentivized to do a better job since some of their compensation is on the line.

Capabilities

One of the primary reasons to hire a consultant is that they have the necessary skills and/or expertise to perform the software implementation that you may not already have in-house.  Beyond the skills that they bring to the table, a consultant should also bring some other benefits to make a strong business case for hiring them.  Your consultant should bring the necessary tools, techniques, and methodologies to the table that their consultancy uses and which you don’t have.  This may be as simple as them showing up with their own laptops and software licenses that you don’t need to pay for, or them having the necessary data gathering systems to pull in all the info you need for your new sustainability software platform. 

As consultants, you are also expecting them to bring prior experience to the table.  Whether or not they’ve worked on a project exactly like what you are asking them to perform, you should be able to get veteran individual consultants and/or teams of consultants to come help you out.  And by teams, we don’t mean the kind where the senior partner sells the deal and then you don’t see him again except when he stops by infrequently to check on the team of freshly minted MBA’s that he’s actually assigned to your project.  We mean the kind of team where your senior (and junior) consultants are actively engaged on a daily basis to help you get the project done quickly and effectively – i.e. on time and on budget.

In addition to experience, your consultant may be able to offer a cost advantage, especially if their firm is already doing business with you and you can get any sort of bulk discount.  The discount opportunity may extend to software and/or hardware purchases as well since they may be able to aggregate purchases across multiple clients.  This discount opportunity may also arise if you are able to hire your software vendor as the implementation consultant.  While this may raise some concerns about “the fox guarding the hen house”, it may help keep your costs down. 

Confidence

There’s an old adage in the software industry: “No one ever got fired for hiring IBM.”  While this is generally an explanation of why you should hire a bigger firm over a smaller firm, it also illustrates the importance of having confidence in your choice.  Regardless of whether you feel the need for a big firm with vast resources, or if you prefer a smaller firm that provides a more personalized experience, the most important factor for you is that you find a good consultant that you can trust.  They should have a proven track record, have a solid network of resources they can draw on (regardless of whether they are internal or external to the consulting firm), and be able to instill the necessary confidence in you that they will deliver.  If they can’t do that, then you shouldn’t hire them.  If they’re the best solution to your need however, then by all means, hire away!

Now that you’ve read this article, tell us what you think!  And be sure to check out the full white paper.

AGPOM Sponsors Team for Earth Day Run

Tara Hughes April 21, 2015 Industry News No comments

AGPOM Sponsors Team for Earth Day Run – Saturday, April 18th

In support of this year’s upcoming Earth Day, AGPOM sponsored a team of participants from our partner, Fulcrum Insurance Programs​, for the local Earth Day Run. After the run a native sapling tree was given to each participant (to plant themselves or donate to the park to be planted). Additionally, for each finisher will have a mangrove tree planted in their name by the Mangrove Action Project. Mangroves are the number one carbon sequestering tree on the planet.

Investing in trees is one of the best investments you can make – did you know?

1. A single tree can absorb 10 pounds of air pollutants a year, and at the same time produce nearly 260
pounds of oxygen- enough to support two people.

2. Forests provide natural filtration and storage systems that process nearly two-thirds of the water supply
in the United States. Trees help filter water, help prevent soil erosion, moderate runoff during rain storms as well as increase groundwater aquifers.

3. Trees also reduce the greenhouse effect by shading our homes and office buildings. This reduces air conditioning needs up to 30%, thereby reducing the amount of fossil fuels burned to produce electricity. This combination of CO2 removal from the atmosphere, carbon storage in wood, and the cooling effect makes trees a very efficient tool in fighting the greenhouse effect.

4. Crunch the numbers: Over a 50-year lifetime, a tree generates $31,250 worth of oxygen, provides
$62,000 worth of air pollution control, recycles $37,500 worth of water, and
controls $31,250 worth of soil erosion.

5. A U.S. Department of Energy study reports that trees reduce noise pollution by
acting as a buffer and absorbing 50% of urban noise.

6. Mature tree’s can increase property value 5-15%.

View the benefits of trees article

The Earth Day Run event organizers were also accepting donations of used running shoes for the More Foundation which uses the proceeds from the sales to help people in Africa grow fruit trees, gardens and other projects. They also partnered with Arcadia Power so all the electricity that the event produced was off-set through purchased wind power. All end-of-race fruit was organic and waste was either recycled or composted.

 

Read more about this event on their website: http://www.magnusonseries.org/earthday

Introducing RILA’s 2015 Retail Sustainability Management Maturity Index

The SSC Team April 21, 2015 Tags: , , , , , , Strategic Sustainability Consulting No comments

By: Alexandra Kueller

The Retail Industry Leaders Association (RILA) recently announced their brand new Retail Sustainability Management Maturity Matrix. The Matrix, which is based on Deloitte and RILA’s knowledge of the retail industry and its sustainability programs, hopes to be a tool that will be used by sustainability executives, individual companies, and industry-wide.

(Although this matrix is designed with the retail industry in mind, we think that it has a wide applicability beyond just the retail sector.)

While there are many aspects of sustainability, the Matrix focuses specifically on environmental sustainability. The Matrix has seven sectors that helps break down the different components of environmental sustainability:

  1. Strategy & Commitment
  2. People & Tools
  3. Visibility
  4. Retail Operations
  5. Supply Chain
  6. Products
  7. Environmental Issues

Each sector is then broken down by dimensions, and each dimension is ranked by five categories: starting, standard, excelling, leading, and next practice. RILA acknowledges that only a few companies are in the “leading” category, but hopes that over the next few years more companies can get to that level. The main goal of the Matrix is to identify all of the possible pathways to strong environmental sustainability.

Here are some of the ways the Matrix can be useful:

  • Identifying and assessing the maturity of your sustainability program and opportunities for improvement
  • Helping to facilitate conversations about your sustainability program’s development
  • Finding ways to access for funding for your sustainability program
  • Training employees to have more sustainability responsibility
  • Allowing internal, external evaluation of your program’s perception, gaps it might have

It’s RILA’s goal to use the Matrix to benchmark the industry in 2015, while annually updating the matrix.

Over the course of the next two weeks, we will be further breaking down the Matrix by sector to get a more in-depth look at how the Matrix will work.

Last fall we took an in-depth look at SSC's peer benchmarking system that we used against the athletic wear industry. Catch up here.

How Sustainability is Saving Chinese Textile Mills Money

The SSC Team April 16, 2015 Tags: , , , , , , , , Strategic Sustainability Consulting No comments

By: Alexandra Kueller

It’s no secret that China is not an environmentally progressive country. Beijing is plagued by air pollution, over 100 cities are facing water scarcity issues, almost a third of China’s rivers are too polluted for human contact, and to top it all off, as a nation China is one of the highest emitters of carbon dioxide. 

One of China’s largest polluters are their textile producers. Responsible for roughly 50% of the world’s fabrics, textile manufacturing is a very environmentally un-friendly process that results in high energy and water use. The industry is responsible for the being the third largest dischargers of wastewater and the second largest user of chemicals in China. 

All hope is not lost, though. With the help of the National Resources Defense Council’s (NRDC) Clean By Design program, Chinese textile manufacturing facilities are using green tactics to not only reduce energy and water consumption, but also help them save money as well.

The NRDC recently released a report stating that the 33 textile mills that are using the Clean By Design program are saving an estimated $14.7 million annually. By going after the “low-hanging fruit” – the low-cost, easy to implement projects – the textile manufacturers are helping to make a strong business case for sustainability.

Here are some of the ways the Chinese textile mills have not only reduced their environmental impact, but also saved money along the way:

Electricity Reductions

10 of the 33 textile mills went after projects that helped reduce electricity consumption. While the average reduction was only 4%, some of the more impactful projects yielded a 9% reduction with over $21,000 in annual savings. As a bonus, this project paid for itself in only a month!

Water Reuse

31 mills implemented 53 projects that resulted in an average of 9% water savings, with some of the top mills reducing water consumption by 20%. A lot of the reuse efforts focused on targeting process water and grey water, because those tended to yield the largest and most cost-effected reductions. Some mills installed a water treatment process, and that initial investment of $7,600 paid for itself in three months.

Energy Recovery

Through 173 projects that focused on electricity reduction, every participating mill saw an average reduction of 6%, with the top mills seeing a 10% reduction in energy. A majority of the projects saw efforts to recover heat from exhaust gas, water, and oil due to the fact that they produced that largest, most cost-effective reductions: a $500,000 investment yielded roughly $650,000 in annual returns.

Looking for ways to reduce your company's carbon footprint? Learn more by checking out our white paper!

BOMI International Partners with the Hospitality Industry to Reach Green Goals

Tara Hughes April 10, 2015 BOMI International No comments

BOMI International Partners with the Hospitality Industry to Reach Green Goals

BOMI-LogoBOMI International, the Independent Institute for Property and Facility Management Education, has partnered with many industry-leading hospitality companies to train and prepare their teams to meet new challenges in facility management. One such client is Starwood Hotels & Resorts Worldwide, Inc.

BOMI International offers designation programs to further industry understanding and implementation of best practices in property and facility management. The educational institute’s Facilities Management Administrator (FMA®) designation provides the critical knowledge and tools professionals need to strengthen their practical experience and empower them to become more effective facilities professionals.

Starwood’s Directors of Engineering earn the FMA designation and apply the knowledge gained toward meeting Starwood’s high standards of excellence, such as the 30/20 by 20 program.

“The goal of Starwood’s 30/20 by 20 program is to reduce energy use by 30 percent and cut water consumption by 20 percent by 2020 at every property,” said Gus Newbury, Starwood’s Regional Director of Engineering—East. “BOMI International has helped us along the way by providing facility management education to our Directors of Engineering globally.

“Since our partnership was launched in 2011, 187 of our DOEs have participated in the FMA. Since they have gone through BOMI International’s program, they have been able to focus on guest experience priorities such as comfort, safety, daily operations, and maintenance, all while creating a safe and productive workplace and keeping sustainability in mind,” continued Newbury.

Among many other sustainability initiatives and practices, Starwood has introduced a program involving meetings and group business. A few years ago, Starwood launched the “Sustainable Meeting Practices” effort to enhance their guest participation in sustainability initiatives.

“At Starwood, we have a shared belief that people want a better way to experience the world. We view our work in sustainability and social responsibility as our commitment to making sure there is a better world to experience,” Newbury added.

BOMI International is committed to its corporate educational partnership programs that bring classes directly to clients, including courses that lead to earning BOMI International certificates and designations like the FMA. Ninety-eight percent of BOMI International graduates said that its courses have enabled them or their employees to be more efficient. In addition, 68 percent have experienced a decrease in monthly operating expenses, energy consumption being the number-one cost savings.

To learn more about BOMI International’s designations and certificates, including the FMA, visit www.bomi.org/AGPOM.aspx or call Laney Solomon at 410-974-1410 ext. 1320 for special AGPOM member pricing.

April 10, 2015

Prepared for AGPOM

© 2015 BOMI International

45 years logo

10 Steps to Building a Better Business Case

The SSC Team April 9, 2015 Tags: , , Strategic Sustainability Consulting No comments
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This article was written as an expansion of our white paper “Choosing Sustainability Management Software for your Business” published in July 2011. Enjoy:

As part of your decision making process, you need to make a business case – in financial terms (and maybe some softer measures) – in order to make sure you that you are on the right track.  The outline below should help guide your thought process in fleshing out what the benefits might be for your firm.

1. What’s your overall strategy?  

Is it a cost savings approach?  Do you want to just provide better reporting to stakeholders?  Or are you generating revenue from a green product line and therefore need to track how green it is?

2. What can you actually measure?  

Are you saving labor/time?  Do you have fewer errors and better data quality?  Is it a reduction in risk of losses due to litigation?  Or are you able to increase sales revenue by having better data on your environmental impact?

3. What are the baseline values for those metrics?  

It might take a 100 hours per month of staff time to produce your current report.  Maybe you average $50K in legal fees yearly.  Or you are currently selling $100K per month in your new product line.

4. What supporting research do you have?  

This could be clear internal documentation of your baseline metrics as well as competitive research on your competitors, your region, your industry, etc.  This research will tell you how your data in number 2 and 3 above stacks up against a larger pool of data.

5. What incremental percentage change do you expect to drive in your metrics?  

You should be able to estimate this based on your answer to number 4.  Are you going to be 5% better yearly?  10% lower yearly?  50% higher monthly?  Just make sure you document your assumptions on how big a percentage change you are going to drive, which direction that change is in and what time period that change will cover – i.e. monthly metric, yearly metric etc. Does the change all happen in the first year or does it happen steadily for the entire period of your business case? 

6. What volume change in your metrics results from the incremental percentage change?  

Does a 5% decrease in labor hours equate to 5 hours a month or 500 hours a month?  You need to be able to convert from percentage to number.

7. Translate your percentage/number value into a monetary amount.

Now you have to put on your quantitative hat as you churn through the numbers.  This is where you weed out the quantitative benefits from the qualitative benefits.  Both are desirable, but you want to be able to show the monetary value that you are going to save or earn as a result of your purchase.

8. Decide how you are going to measure it.

You know what you are measuring, how much it is going to change and what your end result is expected to be.  Now you need to determine how you are actually going to measure your progress from start to finish.  If you can’t put a firm description around how you are going to specifically measure the change – i.e. maybe your product revenue will increase for reasons besides its greenness – then you’ve found a soft benefit.  It’s still worth tracking, but you may need to share some of your business case benefit with another department or project.  If you’ve got a very specific way to track your benefit realization, then you’ve found a hard benefit.  The hard benefits, are the kinds that your accountants will like – try to get as many of these on your list as you can.

9. Write it up. 

You’ll need to present your business case benefits to somebody – whether it is your bank when asking for a loan to purchase the software, or to your executives to convince them to support your purchase decision.  Tell them why your purchase is going to be a big success for the company, how much it will contribute to their triple bottom line, and how you are going to come back in a year or three and show them how well things went. 

10. Measure it.

After you implement the software, you have to go back and do the things you said you were going to do in number 9.  Many companies don’t actually close the loop today with projects – they just move on to the next thing and go on their way.  If you want successful business results, it all comes down to measuring it, if you want to manage it.

Now that you’ve read this article, tell us what you think!  And be sure to check out the full white paper.

Best of the Blog – March 2015

The SSC Team April 2, 2015 Strategic Sustainability Consulting No comments

This month, we decided to introduce a new feature on the SSC blog!

In case you missed them, here's a round-up of our most popular blog posts from this past month. These are the articles that received the most attention from our online audience. Check them out! 

  1. 3 Stupid Mistakes that Sustainability Job Seekers Make
  2. The Brutal Truth about Sustainability Reporting
  3. Puma, Adidas, Under Armour - Who Has the Best Sustainability Sustainability
  4. How NOT to Choose Green Team Members
  5. 7 Ways to Get Attention for Your Sustainability Plan

If you like an article, please consider sharing it online via your favorite social media platform. Helping us grow our audience is the #1 way you can show your support for the work that we do.