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Scope 3 Emissions: Which Ones Matter?

The SSC Team March 3, 2016 Tags: , , Strategic Sustainability Consulting No comments

Enjoy this post from the SCC Archives: 

If your company is getting ready to calculate its annual carbon footprint (or is thinking about doing it for the first time), you'll definitely want to pay attention:

In this 6-minute video, SSC President Jennifer Woofter provides an overview of the new Scope 3 emissions guide – developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), and published on the Greenhouse Gas Protocol website.  Jennifer explains how different companies may choose to approach the 15 categories of Scope 3 emissions, depending on their industry, operating structure, and internal capacity.

 

If your company would like to talk about carbon footprinting or developing a sustainability report, contact us to set up a 15-minute introductory phone assessment today. 

Use a “Pitch Deck” Format for Your Sustainability Project

The SSC Team February 23, 2016 Tags: , , , Strategic Sustainability Consulting No comments

Investors and C-suite leaders are used to seeing pitch decks. They’re used to getting high-level information that is well presented, organized, and clear, and quickly analyzing it to ask the right questions.

If you bog your ideas or proposals down in data, as we sustainability professionals do love the data, you risk losing the attention of the decision makers and not winning the work or getting the green-light on your big idea.

Instead, consider crafting a pitch deck style presentation to get your idea off the ground. Entrepreneur published a 14-point checklist for investors, and we think it’s easily molded for any project-pitching presentation. Not all 14 are relevant here, but we pulled out the best ones!

1. Cover page.

If you are an outside consultant pitching a project, include personal contact information, logo, and business name to establish your identity. And even if you’re an internal employee, put your name and title on the front page (just in case someone in the board room spaces on your name. Save everyone the embarrassment).

2. Elevator pitch.

Briefly summarize the scope of the project, the goals, and the impact on the company, specifically in terms of this project’s alignment with the company’s strategy (or lack of strategy) in sustainability. Keep this part short.

3. Describe the problem.

Outline why you’re proposing this particular sustainability effort for the company in the first place, using peer benchmarking, risk profiles, and/or stakeholder pressure to demonstrate how this project is a “worthy investment.” For example, if you’re going for a life-cycle assessment for a small manufacturing firm or supplier to a major retailer, talk about supplier scorecards and stakeholder pressure.

4. Propose a solution.

Explain why this sustainability effort is the best next (or first) step toward a marked solution to the problem. Be realistic and don’t over-promise.

5. Competition.

Bring up other case studies from companies similar to the one you’re pitching and demonstrate how a project of this type has been successful to others.

12. Critical risks and challenges.

In a traditional pitch deck, you would want to “address every obstacle and stumbling block you can foresee,” but in this case use this area to demonstrate that the scope of work might grow or change based on discoveries along the way.

6. Market opportunity.

If you’re a consultant, be sure to point out what makes you different from the competition, whether it’s your extensive industry knowledge, your data collection gurus, or your long performance record.

11. Press mentions and accolades (and case studies or references).

Keep this short, but provide references or a case study that demonstrates your expertise.

9. Team (and budget).

Outline how many of the company’s employees will need to set aside time to support this project (or just the budget if you’re pitching as a consultant).

A solid presentation that is well organized and clear will get your point across quickly and give you more time to answer specific questions if the need arises.

We like to provide clear proposals to our clients to clarify and demystify the processes, benefits, application, and cost of services like life-cycle assessments and sustainability reporting. Although every company is unique, we have more than 10 years of experience delivering valuable results for a modest investment. 

Food & Beverage Industry Demonstrates How “Business Success” Can’t be Achieved Without Sustainability

The SSC Team January 14, 2016 Tags: , , , , , , , , Strategic Sustainability Consulting No comments

The connections between increased revenue and investment in sustainability programs are complicated.

Even today, sustainability professionals continue to “make the business case” for sustainability.

It’s true that sustainability programs require an investment—in staff, in reporting, in communications, in change management—and the case for making smart investments for maximum results must continue to be made.

However, as we enter 2016, we should no longer need to make the case for sustainability itself.

Although directly linked financial benefits are sometimes difficult to identify, research suggests companies that fully integrate sustainability principles and practices into their strategic operations do outperform peers financially.

The counterargument is that these same companies are just more strategic overall, sustainability or not, so they will perform well simply because of a culture of innovation, risk mitigation, long-term planning, and thought-leadership.

Wrong.

The fact is, as we enter 2016, a company can’t even be considered a strong, strategic player without sustainability being one of its core principles. Sustainability has made it into the short list of core principles of true strategic leadership. In other words, you can’t have one without the other.

Case in Point: The Food & Beverage Industry

Pure Strategies, a sustainability consulting firm focused on the food and beverage industry, recently published results of a survey of major global food and beverage companies.

In the 2015 report, 18% more food and beverage companies, 100% of companies surveyed, are developing or implementing sustainability programs (from 82% in 2013), and 46% of the companies reported increased sales (up from 19% in 2013).

What the report tells us is:

  • More than ever before, food and beverage companies are implementing sustainability programs based on best practices of the companies that have already implemented sustainability programs
  • As the best-practice modeling increases throughout the industry, more food and beverage companies are reporting increased sales
  • The leaders of these food and beverage companies are tying industry-wide sustainability best practices directly to their increased sales

The food and beverage survey shows how sustainability, as a core strategic focus, is permeating the very operating principles of an entire industry – and a significant percentage of companies are making more money in the process.

Using food and beverage as an example, any company looking to become a long-term leader in any sector should look seriously at its approach to sustainability.

Sustainability must truly be integrated into a company’s core strategic plans, or it will likely get left behind.

If your company looking to integrate industry best practice planning into its sustainability strategy, a great place to start is with a sustainability assessment and peer benchmarking report.

 

 

 

Moody’s releases assessment of environmental risk by sector

The SSC Team December 15, 2015 Tags: , , , , Strategic Sustainability Consulting No comments

Moody’s, the bond credit rating agency, recently published two new reports, their global assessment of how environmental risks affect credit ratings and a report that shows how these risks vary across industry sectors (registration required to view).

It’s great to have both reports published because one can see how Moody’s approaches the data and then the results of applying their assessment standards.

Essentially, the agency looked at direct environmental impacts AND consequences of regulatory/policy impacts, crunched those numbers with materiality and timing projections, and, voila – they’ve published a risk profile by industry of 86 global sectors.

The highest risk sectors are projected to hold more than $2 trillion in debt with material credit exposure to environmental risk.

Which sectors are at the highest level of risk? Of course, coal is up there on the top, but some of the others are bound to surprise you.

Check out Moody’s assessments and let us know if you see any surprises on the high-risk list.

If your organization is looking to assess its own climate risk, or perform a materiality assessment to help prioritize sustainability efforts, contact us today.

How to earn respect as a sustainability leader

The SSC Team December 10, 2015 Tags: , , , , Strategic Sustainability Consulting No comments

When trying to lead a sustainability program from the inside, you may find that getting internal buy-in from your peers, managers and executives is the toughest part of the job. This is especially true when sustainability and CSR don’t get a lot of respect as a corporate priority.

Consider the situation from nay-sayers perspectives, though, and you can begin to see why sustainability (and you) aren’t favorites at work:

  • The CFO may be thinking: why was sustainability “forced” on my, and why does it always seem to be spending more money than it saves?
  • The COO may be thinking: have CSR programs really delivered anything meaningful to the company, or is it just a feel-good initiative that’s taking people away from their “real” jobs?
  • Department heads may be thinking: Do sustainability people do anything except for harp about recycling all the time?
  • The Director of Communications may be thinking: I just want to tell a good story. Why do the sustainability managers always want to bring up our weaknesses?

The industry, the corporate culture, the history of the company’s performance, the physical location, and many other factors may contribute to how your co-workers, subordinates, and leadership view the role of the sustainability leader.

In a recent article in the Harvard Business Review, Jim Whitehurst, the CEO of Red Hat, a security software company, gives some solid advice about earning respect inside a corporate culture.

Sustainability leaders may want to pay special attention to Whitehurst’s advice.

  • Show passion for the purpose of your organization and constantly drive interest in it. Even though you may have a TON of ideas on how your company can quickly change and make significant environmental gains, you should frame those ideas and the positive change they can create in language that speaks to the purpose of the organization itself. If internal stakeholders see sustainability programs as strengthening the business as a whole, and not just some ancillary reporting department, they will begin to respect sustainability’s role in the organization.
  • Demonstrate confidence. You may be asking employees who are not under your direct supervision to make changes to purchasing habits, reporting protocols, and behavior. You need to ask them with respect and confidence. Conveying confidence for a program that is supported up the chain-of-command will help establish you – and the programs you are implementing – will encourage others to follow your lead.
  • Engage your people. One of the biggest complaints about sustainability may stem from the top-down approach to change. Of course, you’re gathering the data, interpreting the reports, and making recommendations – but those who have to change because of a recommendation may come to see your role as an arbitrary rule imposer. As you look at programs and policies that affect department function or employee behavior, ask for input, ideas, and thoughts about how to implement change. You may get some great ideas from unexpected places.
  • Don’t be a know-it-all. You may know a bit about sustainability, but you probably don’t know a lot about the detailed work of the different functional areas in your company. By showing passion for shared company goals and values, being confident in your own role, and engaging people in different areas of the company, you will begin to build a positive reputation. But, you may also misstep. By “owning up” as Whitehurst says, you should frankly address when something doesn’t go as planned and help the team build a work-around together.

Managing sustainability is a difficult role in many corporate systems as sustainability is not a supervisory, but more of an advisory, department. This makes it even more important to earn respect with internal stakeholders. By doing so, you will really see the full effects of sustainability programs and help integrate sustainability into the fabric of the company’s culture.

Working on a tough sustainability project where internal stakeholders are pushing back? Let us know in the comments.

TED Talks Sustainability: Harish Manwani, COO – Unilever: Profit is not always the point

The SSC Team December 8, 2015 Tags: , , , Strategic Sustainability Consulting No comments

Nothing inspires us like a good TED talk, and here’s one of our favorites. Enjoy it!

About the Speaker: Harish Manwani joined global consumer products corporation Unilever as a management trainee in 1976; he is now the company's chief operating officer.

About the Talk: Capitalism has delivered some amazing things to society, but also some devastating ones as well. Although we may think that capitalism, and corporations, are all about the bottom dollar, Manwani argues that corporations can, and must, include the “fourth G” in measuring success: growth that is sustainable

If your investors are assessing your climate risk, shouldn’t you be?

The SSC Team November 12, 2015 Tags: , , , Strategic Sustainability Consulting No comments
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This summer, the World Resources Institute and the UNEP Finance Initiative consulted with more than 100 energy, climate, and finance experts to create a discussion framework for investors to weigh exposure to the risks of climate change.

Essentially, it is a toolkit for investors to evaluate a company based on climate risk factors not directly related to physical risk. Most investors can already pick out obvious physical risks, i.e. investing in coastal property as sea levels rise. But non-physical, climate-change effected risks are also important.

The WRI discussion framework addresses those risks, called carbon-asset risks. They include public policy, regulation, technology, unpredictable market conditions, and shifting public opinion.

This discussion framework is an excellent tool for investors to weigh risks as they choose to make investments, but we argue that companies themselves should be looking at this tool to discover their own carbon asset risks and then engaging in some deeper-level analyses and audits.

For example, the assessment recommends that investors look beyond carbon footprinting and delve deeper into company supply chain audits that may uncover risks. For example:

  • Geographic location (are too many of your suppliers in the path of a super-typhoon?),
  • Local regulations (are the countries your source your raw materials from looking to legislate and increase your costs?),
  • Diversification in operations or production (are your products and services too dependent on fossil fuels?).

This discussion framework, while absolutely useful for investors, can also be used as a cheat sheet for your own business. Next step: Start auditing and taking action now to mitigate your climate risk.

Reducing exposure to risk is crucial, not only to become more attractive to investors, but also to become a more sustainable organization overall!

If you’re ready to start looking more deeply at your carbon asset risk, contact us to learn more about sustainability assessment and supply chain analysis.

A Tale of Two Sustainability Reports – Part 2

The SSC Team February 17, 2015 Tags: , , , , , Strategic Sustainability Consulting No comments

By: Alexandra Kueller

Two weeks ago, we featured an article that highlighted sustainability reports from two of our clients: Chicken of the Sea and PureCircle. Both companies made great strides towards their 2020 sustainability goals and we wanted to feature their achievements.

This week, we wanted to do more of a comparison between the two companies. With both companies operating in the food industry – Chicken of the Sea with canned fish products and PureCircle with stevia – we thought this would be a great opportunity to see how close the companies (and the reports) compare within the same industry!

Chicken of the Sea 

Chicken of the Sea specializes in…

…producing a wide variety of seafood that ranges from frozen to refrigerated to cans, pouches, and cups. While Chicken of the Sea is known for their tuna products, they also produce other seafood items that include oysters, crabmeat, clams, salmon, sardines, shrimp, and more.

Their services relate to sustainability because…

…over-fishing in oceans is becoming a more prominent issue, especially regarding tuna. Chicken of the Sea is doing their best to make sure they are not only responsibly harvesting tuna, but also making sure that their production line is as sustainable as can be. 

These were their sustainability goals:
Chicken of the Sea has five main focus areas for the 2020 goals (against 2012 baseline):

  • Energy – reduce electricity and natural gas use by 20% each
  • Waste – reduce landfill waste by 30%
  • Water – reduce water use by 15%
  • Health & Safety – maintain/reduce safety incidents
  • Supply Chain – audit 90% of seafood procurement spend

 In 2013, Chicken of the Sea saw major strides towards a lot of their goals, but there were three focus areas that really stood out: waste, water, and health & safety. Chicken of the Sea saw a 27.8% reduction in waste, a 12.8% reduction in water use, and a 40% lower incident rate than the previous year, staying on par with their goal.

PureCircle 

PureCircle specializes in…

…producing and innovating the next generation of stevia to be used as sweeteners for the food and beverage industry that help support a natural and healthy lifestyle, such as low and no-calorie sweeteners.

Their services relate to sustainability because…

…even though this is PureCircle’s first sustainability report, sustainability has been engrained in their businesses practices since the beginning. From their operations to their social commitments, PureCircle has made sure to be socially and environmentally responsible by having sustainability policies in place. 

These were their sustainability goals:

On the environmental side, PureCircle has four main 2020 goals (against 2011 baseline):

  • Reduce carbon intensity across the product life cycle by 20%
  • Reduce energy intensity across the product life cycle by 20%
  • Reduce water intensity across the product life cycle by 20%
  • Eliminate waste across farming and processing operations with zero waste to landfill

So far, PureCircle is on course to meet all of their goals, with one goal – energy intensity – already exceeding the original goal by reducing intensity by 42%.

On the social side of PureCircle’s sustainability goals, the company hopes to:

  • Support 100,000 small-scale farmers with sustainable agriculture policies
  • Ensure 100% traceability from gate to individual farm

PureCircle is working and engaging with small-scale farmers on issues such as food security, biodiversity, waste reduction, and fertilizer application to help improve not only the stevia plants, but to enrich the lives of the farmers as well.

Regardless of whether it was the first or third report, what makes both of these sustainability reports strong is the incorporation of a materiality assessment. By completing the assessment, both companies were able to see what is not only what is considered important to the company, but also to their stakeholders, allowing each company to tailor their reports to fit their needs the best.

Curious about how a SSC sustainability report might look like? Check out our previous reports here!

A Tale of Two Sustainability Reports

The SSC Team February 5, 2015 Tags: , , , , , , Strategic Sustainability Consulting No comments
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By: Alexandra Kueller

Imagine our excitement when we discovered that not one, but two of our clients in the food industry were releasing their sustainability reports on the same day. This got us thinking, How can comparing these two reports help our community? We discovered that the patterns and differences can be translated across industries to help you understand what makes a good sustainability report whether it is your first time or third.

Chicken of the Sea is the nation's leading producer of packaged seafood, producing tuna, salmon, shrimp and more, and they are published their third report. PureCircle is a producer of stevia and natural sweeteners for the global food and beverage market, and they just published their first report.

Below we explore the highlights of the two reports:

Chicken of the Sea

In their third year of reporting, Chicken of the Sea continued to make progress towards their 2020 sustainability goals (2012 baseline). Chicken of the Sea has five main focus areas for their 2020 goals:

  • Energy – reduce electricity and natural gas use by 20% each
  • Waste – reduce landfill waste by 30%
  • Water – reduce water use by 15%
  • Health & Safety – maintain/reduce safety incidents
  • Supply Chain – audit 90% of seafood procurement spend

In 2013, Chicken of the Sea saw major strides towards a lot of their goals, but there were three focus areas that really stood out: waste, water, and health & safety.

Chicken of the Sea made a concerted effort in 2013 to reduce waste that went into the landfill, and it paid off nicely: Chicken of the Sea saw a 27.8% reduction in waste. Not only did the waste focus area see a huge reduction, but so did the water focus area as well. With the goal of 15% reduction, Chicken of the Sea reduced water use by 12.8% by installing new water-saving technology. Finally, Chicken of the Sea saw a 40% lower incident rate than the previous year, staying on par with their goal.

PureCircle

Even though this is PureCircle’s first sustainability report, sustainability has been engrained in their business practices since the beginning. This past year, though, they wanted to increase their transparency. Their first report did an excellent job at outlining their environmental and social commitments, and how those commitments align with their 2020 Sustainability Intensity Goals.

On the environmental side, PureCircle has four main 2020 goals (against 2011 baseline):

  • Reduce carbon intensity across the product life cycle by 20%
  • Reduce energy intensity across the product life cycle by 20%
  • Reduce water intensity across the product life cycle by 20%
  • Eliminate waste across farming and processing operations with zero waste to landfill

So far, PureCircle is on course to meet all of their goals, with one goal (energy intensity) already exceeding the original goal by reducing intensity by 42%.

On the social side of PureCircle’s sustainability goals, the company hopes to:

  • Support 100,000 small-scale farmers with sustainable agriculture policies
  • Ensure 100% traceability from gate to individual farm

PureCircle is working and engaging with small-scale farmers on issues such as food security, biodiversity, waste reduction, and fertilizer application to help improve not only the stevia plants, but to enrich the lives of the farmers as well.

Curious about how a SSC sustainability report might look like? Check out our previous reports here!