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Data Management Concepts for Sustainability, Pt. 4

The SSC Team August 20, 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.  Whether you like this article or not, we want to hear from YOU so that we can continue to provide the best insight for YOU, our readers…  Our series on Sustainability Software continues with “Data Management Concepts for Sustainability”.  In this article (Part 4 of 4), we’ll complete the introduction and definition of key Data Management terms (read Part 3 here).  Our end goal with this series is to enable YOU, as the Business Leader, to feel more comfortable in a technical discussion related to the various areas of Data Management, especially as related to the care and feeding of Sustainability Software packages. Being able to “talk the talk” is the best defense in the technology wilderness.  Just remember, at the basis of any technical term is a common sense business notion, and staying grounded to this notion will help keep your conversations from drifting astray.

Data Integration

Data Integration is one of the most difficult of the activities covered in this series because it involves most of the different activities working in concert with each other.  For example, it is implicit in Data Movement between systems where the Data models are different.  Suppose we have data in our Accounting system that will be used in a cost calculation algorithm (method) in our Sustainability Software.  To do this, we need to copy the Accounting data, then reshape it to conform to the load utilities for our package and proceed with the load.  This setup entails numerous subtleties including the cross referencing of the source data model in the Accounting System with the format of the import utility.  This is called Field Mapping and it’s not just an easy matching question where you can get the first few right and guess the rest.  Examples will help us here.
  • Suppose we need to deal with quantity shipment data and the target model is asking for unit prices and volumes.  We might need to deduce the carbon content per gallon from the available carbon content per fifty five gallon barrel, or just divide by 55.
  • A more complex example involves translation from the English System to the Metric System (raise your hand if you can do this without a calculator).
  • Another example would be the rules concerning the potential for rounding errors for large quantities.
  • A final classic example is how to deal with Asian names (commonly listed with the surname first) being transferred into a system with a European paradigm (where the surname is listed last).
Data Integration is expensive to build and more expensive to operate.  SaaS is a way to avoid the Integration Tax to the extent possible since it has already been built into many of the downstream systems you’ll be using.

Data Mining

Data Mining is the last major topic to be introduced.  It also involves smatterings of the others, but has a unique ad-hoc character at its essence. Suppose we have a database that describes product production events in a manufacturing setting.  Suppose also that we wish to learn more about root causes of some recurring problem that has escaped previous attempts to solve it and choose to “look at all the occurrences at once”.  Someone who is expert in the data itself, as well as all the business processes it describes could attempt to construct queries that will reveal common conditions that led to the problem occurrences.  For example, he might notice they all tend to fall in the first half hour of their respective production runs.  Further drill down might reveal they all involve late shipments from the same raw material vendor, while production runs with timely shipments from the same vendor seem to go without mishap.  This would lead us to suspect potential spoilage or lack of maturity in the late arriving material.  Data Mining is a spiral learning discipline.  One spirals in to a common cause, or spirals out to learn the nature of the Cosmos.

Conclusion

We hope that as a result of this information, albeit somewhat high-level, you’ll find a greater degree of ease in approaching Data Management problems and their solutions with any Sustainability Software package that you may be considering.   As with the rest of this series, our goal is to guide you through each of these complex topics and bring them safely toward a solution that will provide you with robust and accurate data and data management practices that will last for years to come. Now that you’ve read this article, tell us what you think!  And be sure to check out the full white paper.

Data Management Concepts for Sustainability, Pt. 3

The SSC Team August 18, 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.  Whether you like this article or not, we want to hear from YOU so that we can continue to provide the best insight for YOU, our readers…   Our series on Sustainability Software continues with “Data Management Concepts for Sustainability”.  In this article (Part 3 of 4), we’ll continue introducing and defining key Data Management terms (read Part 2 here).  Our end goal with this series is to enable YOU, as the Business Leader, to feel more comfortable in a technical discussion related to the various areas of Data Management, especially as related to the care and feeding of Sustainability Software packages. Being able to “talk the talk” is the best defense in the technology wilderness.  Just remember, at the basis of any technical term is a common sense business notion, and staying grounded to this notion will help keep your conversations from drifting astray.

Data Movement

Data Movement is one of the silent cost areas of Data Management.  This entails the replication of data into a system and then out of it on to another system.  For example, suppose you have selected the ideal Sustainability Software offered in a SaaS-based contract by a reputable vendor.  A qualified consultant is hired to mastermind the installation and the ideal algorithms are determined, tested and approved.  All we need now is to move the company transaction data into it and let it do its work to produce the outputs we desire.  What can be so hard about that? Strong vendors of Sustainability Software will provide robust utilities to import data into their system and to export data from it.  These must receive special attention from your Consultant and from your IT staff who will need to know how they work, at least for diagnostic scenarios. We list some additional considerations below.

Data In

Suppose your consultant determines your current operational control systems can supply the data your new Sustainability Software needs and a prototype has proven this to everyone’s satisfaction.  It seems like all we need to do is to rerun the prototype code every day and everything will work. Axiom of Design:  Everything needs to be designed at least three times: Once to see if we even really want what we had in mind, once more to learn how to build the ongoing system, and once more to really build what we imagined.  Then Continuous Improvement kicks in. You are in the process of building what is called a Data Movement Application.  Any process that is repeated will fail often in new ways not anticipated.  Yes, computers can break and humans make mistakes frequently, but tornadoes and blizzards happen too. We want repeating processes to repeat as planned, and this is why the first design of any software will be replaced.  Moreover, you are probably required to prove to an auditor that all your data is being transmitted and received with very few errors that are themselves being analyzed and accounted for.  This is motivation for an Automated Balance and Control system that manages your Data Movement and assures its accuracy and timeliness.  If you intend all the work to be “outsourced”, be sure to consider these factors in your negotiations.  At minimum, be prepared to self-ensure for these events—they will happen.

Data Out

There are two main reasons to move data out of your Sustainability Software.
  1. To provide a report for approved readers
  2. To supply calculated data to another system
Reporting is technically “easy” now with all the Business Intelligence platforms that are available.  Vendors include Microsoft, Oracle, IBM and many others.  These tools are expensive but would be cost effective for SaaS providers because they can scale to serve many end users.  They are being enhanced daily to also support information display on tablets and smart phones, so you can digest this information over the Internet from nearly any place in the world. Data transfer to another system, however can be a different story.  This will be a Data Movement Application and all the considerations we’ve raised above apply here as well, except your system is now the supplier of data and another system is the recipient.  The complexities arise not only from engineering for repeatability, but from the likely need to translate source data so the target system can receive and interpret it appropriately. (TO BE CONTINUED…)  Now that you’ve read this article, tell us what you think!  And be sure to check out the full white paper.

Data Management Concepts for Sustainability, Pt. 2

The SSC Team August 13, 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.  Whether you like this article or not, we want to hear from YOU so that we can continue to provide the best insight for YOU, our readers…   Our series on Sustainability Software continues with “Data Management Concepts for Sustainability”.  In this article (Part 2 of 4), we’ll continue introducing and defining key Data Management terms (read Part 1 here).  Our end goal with this series is to enable YOU, as the Business Leader, to feel more comfortable in a technical discussion related to the various areas of Data Management, especially as related to the care and feeding of Sustainability Software packages. Being able to “talk the talk” is the best defense in the technology wilderness.  Just remember, at the basis of any technical term is a common sense business notion, and staying grounded to this notion will help keep your conversations from drifting astray.

Data Modeling

This term is most commonly associated with Data Warehouse design, but is relevant to the construction of any database.  If you elect to design and build your own Sustainability Software you will find the design of its underlying database (Data Modeling) to be one of the most labor intensive steps in the process, and because Sustainability is a rapidly evolving concept, it will seem that the database changes are boundless. Data Modelers are not only IT-savvy, but are required to be subject matter experts in the business functions of the company.  Data Modeling usually starts with vocabulary lists which are organized by a discipline called Taxonomy.  These lists are then translated into abstractions called Logical Data Models which ideally constitute the rigorous definitions of, and relationships among all the data elements required for the enterprise to function.  Then magic happens and database administrators interpret the Logical Data Models into real databases in software products such as Oracle, DB2 or SQL Server.  There are software tools like ERWin and ERStudio that assist both the modelers and DBA’s in doing this. These are lofty goals indeed and can be expensive to implement especially if you purchase expensive tools.  Additionally, in a rapidly changing environment it can be difficult for the Modelers to keep pace with the Entrepreneurs, but if your Business requires databases to function, their models (designs) must either be purchased from vendors or created by the home team. Since Analysis Paralysis can be costly, we encourage you to “buy” vs. “build” the database for your Sustainability Software, especially given the wide variety of SaaS solutions available in the market today.  For small to midsized companies, this is by far the most cost effective option.  If you elect a SaaS approach, all these issues will be completely hidden from view and their expenses will be shared among all the system’s users as part of the overall licensing cost.

Data Storage & Archiving

This is where the ongoing cost kicks in.  Hardware for data storage is at an all time low and trending downward, but the software licenses required are costly to buy and to maintain going forward.  Both must be periodically patched and upgraded which requires a sophisticated IT Infrastructure team.  These costs and hassles furnish more strong arguments for SaaS. There are also potential standards clashes with bringing in special purpose software.  For example, SQL Server is an excellent database platform for a small to midsized company, but the Sustainability package you love most might be based on DB2 and Cognos.  The benefits of the new system could easily be outrun by the cost of this big company software alone.  Remember the notion of Total Cost of Ownership, wherein it often turns out that ongoing costs exceed the installation costs dramatically. This is the area of Data Management concerned with backups, disaster recovery, test environments, complex operational change control, etc.  Bear in mind that Sustainability is an emerging venture and that commercial and governmental influences are afoot to undermine your investment, no matter which way you start out.  It’s best to adopt the conservative approach unless your industry has specific special needs that package software has not yet addressed. If you feel you must support your own Sustainability Software on your own premises with your own team, then make platform compatibility one of your highly loaded criteria.  If you have a SQL Server shop, try to adapt to a SQL Server-based package if possible. One final significant consideration: regardless of who maintains the data storage servers, you will be at least partly responsible to assure all data privacy and audit best practices are followed.  If these are not contemplated in the initial setup, it is possible you will enjoy fines and audits that will eventually motivate the re-design of the storage systems (or migration to a SaaS solution!) (TO BE CONTINUED…)  Now that you’ve read this article, tell us what you think!  And be sure to check out the full white paper.

Data Management Concepts for Sustainability, Pt. 1

The SSC Team August 11, 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.  Whether you like this article or not, we want to hear from YOU so that we can continue to provide the best insight for YOU, our readers…  Our series on Sustainability Software continues with “Data Management Concepts for Sustainability”.  In this article (Part 1 of 4), we’ll begin introducing and defining key Data Management terms.  Our end goal with this series is to enable YOU, as the Business Leader, to feel more comfortable in a technical discussion related to the various areas of Data Management, especially as related to the care and feeding of Sustainability Software packages. Being able to “talk the talk” is the best defense in the technology wilderness.  Just remember, at the basis of any technical term is a common sense business notion, and staying grounded to this notion will help keep your conversations from drifting astray.

Data Management

The definition provided in the Data Management Association (DAMA) Data Management Body of Knowledge (DAMA-DMBOK) is: "Data Management is the development, execution and supervision of plans, policies, programs and practices that control, protect, deliver and enhance the value of data and information assets."  This term is the most general description of the collection of activities involved with data and broadly includes all the areas that we’ll introduce in this article.  If you’re really interested in more detail, check out the DAMA site at http://www.dama.org.

Data Processing

This is another very broad term representing the collection of plans, processes, people and technology tasked with the collection of transactional data (e.g. item sales in a company's retail outlets) and the subsequent calculation of summary data that has meaning to your business such as periodic sales reports.  This includes the routine computational work performed by your company's people and computers that generate output like your monthly customer invoices or accounting reports, for example. Your Sustainability Software, in the ongoing state, would be supplied with data such as rigorous measurements of weights and volumes of raw materials and products (Collected Data) and the software installation will calculate the various indicators and reports for their respective uses (Calculated Data).  When discussing Data Processing, it is always a good grounding exercise to distinguish the Collected Data vs. Calculated Data being considered.  The two have different types of rules around them, which brings us to the next category of Data Management.

Data Governance

Data Governance is the management aspect of Data Management and has to do with identification and life cycle management of Business Rules connected with Data Management.  These rules might be driven by law, profit motivation, social norms or a myriad of other factors, but the establishment of definitions of terms and their existence in your company's soft assets is the foundation of Data Governance.  Examples of such rules include the following:
  • Meta-data Management is the collection of rules and definitions of the data elements used in your company.  It could be stored in a rigorous set of spreadsheets, or in an exotic, purpose-built system like Rochade from ASG Software.  Meta-data should have a dedicated team devoted to its maintenance and secure distribution to interested parties.  This team should include representation from both the technical side and the business side of your firm.
  • Business and technical ownership of data quality standards for things like customer mailing addresses and formulae used in reporting.
  • The clear specification of things like sales transactions and revenue classifications in the company's data streams.
  • The identification and lifecycle management of your company's master lists such as store locations, product names and their reporting rollups, and a consolidated customer contact list across all lines of business.  This activity is referred to as "Master Data Management" and has taken on a life of its own by numerous software companies and consultancies but it is based on the common sense notion to "Keep your lists straight."
Data Governance is like going to church, in that it is often postponed until there is enough confusion in the Business to make people desperate enough to try it.  It is definitely an endeavor that can start small, but requires the organization’s highest level of support.  Unlike some of the other topics presented here. Data Governance must be practiced within the confines of your corporate headquarters by your employees, perhaps augmented by technical consultants from time to time. (TO BE CONTINUED…) Now that you’ve read this article, tell us what you think!  And be sure to check out the full white paper.

Deciding on a Measurement Process: Calculating Your Company’s Carbon Footprint

The SSC Team July 28, 2015 Tags: , , , , , , , , , , , , , Strategic Sustainability Consulting No comments
9pcmmdc4crw-dominik-schroder.jpg Enjoy this blog post from the SSC archives: You can't manage what you don't measure -- but deciding what to measure, how to measure it, when to measure it, and where to capture and store the data can be one of the most challenging pieces of a carbon management strategy. If you're stuck at this stage (or getting ready to tackle it), here are some questions to guide your decision:

Which carbon calculation standard do you want to use?

There are several carbon calculation standards out there, but 99% of companies will end up choosing the GHG Protocol. Why?
The Greenhouse Gas Protocol (GHG Protocol) is the most widely used international accounting tool for government and business leaders to understand, quantify, and manage greenhouse gas emissions. The GHG Protocol, a decade-long partnership between the World Resources Institute and the World Business Council for Sustainable Development, is working with businesses, governments, and environmental groups around the world to build a new generation of credible and effective programs for tackling climate change. It provides the accounting framework for nearly every GHG standard and program in the world - from the International Standards Organization to The Climate Registry - as well as hundreds of GHG inventories prepared by individual companies.
Our advice: whatever standard you choose (e.g. an industry specific standard), make sure that it's built on (and in compliance with) the GHG Protocol. It makes life so much simpler.

Which emissions categories are most relevant to your organization?

In sustainability jargon, this is a question about materiality -- which activities within your operations and value chain generate material emissions? The GHG protocol outlines more than a dozen different categories (like "purchased electricity" and "employee commuting") to choose from. In most cases, you want to calculate emissions from Scope 1 (direct emissions) and Scope 2 (indirect emissions), along with a handful of Scope 3 (indirect emissions) categories that make the most sense given your size and industry.

Which carbon footprint tool makes the most sense?

There are a wide variety of options to measure your company's carbon emissions. There are excel spreadsheet models, and dozens of software programs -- both SaaS and enterprise-level options. Some companies even choose to develop their own internal calculators that integrate directly with their internal systems (like ERP, timesheets, business travel reimbursement, etc.). To dive deeper into this process, check out our free white paper on Choosing Sustainability Management Software. It's a vendor-neutral look at how companies can choose the most effective software option, including the pros and cons of some of the most popular software features.

How will we manage the process?

How many facilities are we going to include? Where is the raw data now, and how will we get it into our carbon calculator? Where are we missing data, and how can we best fill in the blanks? What is our timeline? All of these questions should be answered -- at least tentatively -- at this stage of the process. Are simple mistakes holding back your sustainability? Find out how to correct those mistakes here!

Tracking Progress with Your Sustainability Software

The SSC Team July 16, 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.  Enjoy: We started with the axiom “if you want to manage it, you have to measure it”.  So now that you’ve given some thought to the software solution that you want to purchase, it’s critical for you to come up with your specific measurements.  We’re not just talking about your carbon footprint or how many gallons of water you’re using.  We’re talking about the primary way that you’ll keep score for yourself and your employees so that everyone can tell if you’re actually doing better.  We’re talking about picking your Key Performance Indicators. Type “Key Performance Indicators” into your Google search and you’ll get 6.4 million results (and counting).  With so much written elsewhere on them, we thought it would be useful to give you some suggestions on what you might want to consider implementing as your key sustainability performance indicator.  These “measurements of performance” are not a one-size-fits-all measurement – you have to figure out what makes sense for your business. The most commonly used measures reflect your company’s Green House Gas (GHG) emissions.  These may be represented as an absolute measure of your firm’s emissions (usually in tons) or in relative intensity, such as emissions per employee, emissions per retail area, or emissions per unit of production.  These GHG totals will frequently be provided as “CO2e,” or “Carbon Dioxide Equivalent,” given that CO2 is the most commonly known green house gas ahead of others such as methane, Volatile Organic Compounds (VOCs), and a host of other emissions. A second form of sustainability KPI revolves around the use of energy, water, and other inputs to a company’s business process.  This might include data on total energy or water usage or may again break down the metric on a relative intensity level.  Due to the wide variety of potential inputs and outputs for a firm’s processes, there isn’t really a standard emission measure. A third major form of sustainability KPI is focused around packaging and waste.  This may take the form of the amount or weight of packaging involved in business operations.  Or it may manifest itself as part of a “Zero Waste” pledge taken by a firm that is seeking to reduce, reuse, and/or recycle the byproducts of their business operations. A fourth and (for now) final form of sustainability KPI is that which is customized and specific to your individual business.  You know how you measure success financially, for employee performance, for sales performance, for safety performance.  Maybe these measurements are part of an intensity ratio based on a per-revenue-dollar basis, a per-billable-hour basis, or maybe they are simply expressed in absolute values (total hours of lost productivity due to accidents).  Maybe you can re-use those same measures for sustainability KPIs, or maybe you need to identify new ones. To assist with getting you started on identifying your own KPI’s, here are some quick examples that fit each of the four types mentioned above.  You could find many more from reviewing the Corporate Social Responsibility reports of the companies mentioned below as well as by reviewing your competitors, your partners, your suppliers and your customers own statements.  No matter what approach you decide to take, figure out the measures that will be the right ones for YOU.

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

Sustainability Software: Total Cost of Ownership Revisited

The SSC Team July 14, 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.  Enjoy: We touched on the TCO – Total Cost of Ownership – in the main white paper, but since the cost is such an important part of your decision making process we felt the need to dig into a little more detail.  Be sure to check in with your CFO, your CPA, your financial advisor, or with whomever else you typically engage for financial input as well.  They’ll definitely have a view of the important costs that are specific to your situation.  We’ll break the Total Cost of Ownership down into four main areas:  Acquisition, Implementation, Maintenance/Enhancement, and Growth.

Acquisition Costs...

...include all the money that you need to spend on purchasing your software solution.  They may include direct payments to your primary software vendor as well as any related software that you may need to purchase a license for.  Ideally, you’ll get all the software costs for the enterprise carbon accounting software rolled up into one cost from your vendor, but if you decide to add complementary packages or tools, they may cost you extra. Any hardware costs would also fall into this category.  You can avoid these if you choose a Software-As-A-Service (SaaS) model, but if you need to purchase new equipment for your end users – maybe laptops or tablets/phones for field data entry or memory upgrades for your existing equipment – make sure you include these costs in your TCO.  Your analysis should also account for any taxes and shipping/handling charges on hardware and software purchases.  You will most likely be able to capitalize these costs as they are related to the purchase of company assets; they may be eligible for tax credits or other incentives.  Be sure to check with your accountant for the correct treatment.

Implementation Costs...

...include all the effort necessary to install, set up, configure, test, train, and otherwise get your software ready for launch.  You may need to pay your vendor or a consultant to set up and install the software.  You also may need to allocate time for your internal associates or employees to do work as part of their day job. This internal staff cost is important – your folks may not be able to just absorb this extra work alongside their regular responsibilities.  This cost may be payment for temporary labor to come in and cover the daily office activities, or it may help you determine that you really do need to leverage your vendor or consultant to do more work.  Performing your initial data load and set up, testing all the reports and data interfaces, and training your users on how to use the tool, create reports, and otherwise maintain the information, are all critical.  You may even need to spend time (and money) educating users on why it is important to correctly track your environmental impact. Aside from all the labor costs, you might also need to set aside money for travel (to and from training, vendor locations, etc.), for incidentals (such as food and snacks for meetings and training sessions), and even simple things like office supplies to help you get the implementation done.  Similar to acquisition costs, you can most likely capitalize implementation.  However costs for tasks like training and data conversion may not be eligible for that treatment.  Again, check with your accountant for the correct handling of these costs.

Maintenance Costs...

...cover everything related to your core software system’s ongoing maintenance and enhancement that comes after the initial launch.  In some cases, your ongoing maintenance fees will be bundled with your upfront purchase – if they are, be sure you are specific about what period they cover (i.e. one year, three years, etc.) and what the correct accounting treatment is for these costs.  For planning purposes, your annual software license is approximately will typically be 20% of the upfront purchase costs of the software.  This may vary depending on a number of factors, including whether or not you are on a subscription model, so be sure you identify this with the vendor up front. Once the initial maintenance period is over, you’ll also want to make sure you account for any increases in fees that may occur.  You don’t want to get locked into using a system that suddenly escalates out of your budget a few years down the road because you didn’t get things spelled out up front.   Things like bug fixes, troubleshooting, and support are also be covered under this category.  Maintenance costs are most likely to be operational expenses.  If they’re bundled with your upfront purchase, be sure you know how to split them out appropriately – when you talk to your accounting folks, they’ll thank you for that.

Enhancement Costs...

...for the software are other types of “future costs” that you more than likely will not pay up front.  They’ll come into play when your software vendor releases version 2.0, 3.0, X.0, etc. of your software solution.  You may have the option to stay with your current version, but then you’ll miss out on all the new features, enhancements, bug fixes, and other goodies that your vendor has bundled with the new software.  Your best bet is to get a clear understanding of how often upgrades – that aren’t included free of charge – will come along and what the cost will be.  You should also be sure to capture any accompanying “implementation” costs that may be incurred.  Depending on the nature of the enhancement, you may be able to capitalize the cost as it will relate to an asset versus an operational cost, but once again be sure to check with your accountant.

Growth Costs...

...are the last major category of “future costs” that you should consider.  These costs are incurred when your usage of the software solution increases.  Maybe you start out with only a handful of users of the platform, but then want to scale up and have everyone in the company use the tool.  You may need to go from a “seat license” (for a single user) to a “site license” (for everyone at a single location) or an “enterprise license” (for everyone at your company).  Know these costs so they don’t break your business case down the road. You will also most likely increase the amount of data that you store over time.  This may be due to the addition of more sites, more data elements, or just more detail on your existing information.  Be sure you know when you’re likely to exceed a price threshold so that you can account for it in your planning process.  You may not be able to account for things like mergers and acquisitions at the present time, but you should have some idea of how you expect your business and usage of the system to grow over the next several years from your basic business planning, so be sure to include those details.  Depending on the specific driver for these costs, the accounting treatment may vary between capital and operating expense – try to provide your accountant with specifics when you talk to them.

Cost Timing...

...is important to each of these categories. Make sure you do some yearly projections so you know how much you are going to spend and when.  Your acquisition and implementation costs are most likely to occur in a relatively short time frame (maybe even in a single calendar year).  Your maintenance costs will almost certainly kick in at the start of Year 2, if not earlier.  Enhancement costs might show up yearly, beginning in Year 2 or Year 3.  Growth costs will hit whenever you hit those thresholds – try to make sure you’ve at least given yourself a year or maybe two of room in your initial contract.  You will need to consider the expected lifespan of the asset to determine just how many years forward you need to look.  A typical time frame for a smaller system may only be three years, but for a large enterprise level system that you have integrated with other major systems, you could be looking at a horizon of five or even seven years.  If you were wondering who could help you with that determination, you probably can guess who to ask: your accountant! Now that you’ve read this article, tell us what you think!  And be sure to check out the full white paper.

4 of the Best Ways to Share Your Carbon Footprint Results

The SSC Team June 11, 2015 Tags: , , , , , , , , , , , , , , Strategic Sustainability Consulting No comments
Enjoy this article from the SSC blog archives: Once you've gone through the trouble of gathering all of your data and crunching the numbers, many companies get stuck on how to most effectively communicate their carbon footprint results. Should you do a press release? Put it on the company website? Participate in the Carbon Disclosure Project (CDP) Report process? There are lots of ways to share the results of your carbon footprint. But before you jump into particular communication channels, it's essential to decide what aspects of the data you want to highlight. Here's our take on the four most critical elements to share:

1. Your absolute greenhouse gas (GHG) emissions.

This is the total metric tons of CO2-e that your company is responsible for over a given time period (usually a year). Be sure to divide it up between Scope 1 (direct emissions -- like natural gas), Scope 2 (indirect emissions – like electricity), and Scope 3 (indirect emissions -- value chain activities such as employee commuting, business travel, and waste).

2. Your adjusted GHG emissions.

Absolute emissions are important, but they lack context. You should also choose a relevant way to adjust for your company's specific operations. This might mean looking at carbon-per-employee, carbon-per-revenue, carbon-per-sales, or carbon-per-production-unit.

3. Emissions over time.

For both absolute and adjusted emissions, it's helpful to show a track record -- three years is considered the minimum, while five years or more is considered the “best practice.” (Of course, if you've just started calculating your annual carbon footprint, you won't have a 3-year track record yet!). By showing how your carbon profile changes over time, you'll give stakeholders an idea of your future trajectory.

4. Your carbon footprint story.

Don't just put up the numbers…explain them. What boundary did you draw around your footprint (e.g. what operations and activities were included)? Why are your numbers going up (or down)? How have changes to your business operations (like acquisitions, mergers, divestments, layoffs, expansions, etc.) affected your emissions profile? What are you expecting to see in the future? A few paragraphs of explanation will make a world of difference in your communications. Once you have the pieces in place, what are the best vehicles for sharing your carbon footprint information? We've listed our favorite options below -- and we'd love to hear your opinions in the comments section!
  • Website -- great as an all-purpose communications vehicle, for internal and external stakeholders. Example: Nestle
  • Visual infographic -- more interesting than a simple chart (when done correctly). Example: Microsoft
  • Press release -- a traditional way to announce timely news and to drive readers to your website, your sustainability report, and other communications. Example: Green Century Funds
  • Employee all-hands meeting -- a personal touch can go a long way in generating enthusiasm and buy-in among all levels of staff. Example: Megamas Training Company
  • Sustainability report -- the standard “best-practice” way to share not just your carbon footprint, but also other social and environmental performance. Example: Coca Cola (and note their disclosure about carbon recalculation at the bottom!)
  • Social media – by making the dialogue related to carbon calculations more social, companies can take their disclosure to the next level. Example: SAP
Find out how you can become a better sustainability leader in one of our latest blogs.

5 Habits That Might Be Stunting Your Sustainability Leadership

The SSC Team June 4, 2015 Tags: , , , , , , , , Strategic Sustainability Consulting No comments
By: Alexandra Kueller Sustainability is a broad term that can mean something different to each person you ask, and jobs that require sustainability leadership are no different. You might be a sustainability consultant, a CSO, head of a sustainability team, or even someone in marketing who got dumped with the task of sustainability. Each of these people will attack sustainability in a different way, but they all need good sustainability leadership. And no matter what your profession is, leadership will always be necessary. Larry Alton, wrote an article for Entrepreneur titled "5 Habits That Are Destroying Your Ability to Lead," took note and came up with a list of  bad habits leaders can acquire over time, and we decided to put our own sustainability spin on their list.

1. Isolating Yourself

It’s always tempting to go to your office, shut the door, and hammer away at a project. It can be an efficient way to get things done, right? While you might think you are just trying to be productive, you are also isolating yourself from your team members. You might be struggling to finish a carbon footprint, while trying to edit a sustainability report at the same time, but no one will know if you need help if you’re always cooped up in your office. Don’t be afraid to reach out when you need help, and be sure to keep your team members in the loop.

2. Setting Firm Direction

When it comes to sustainability, there is no “right way” to go about it. You might have a plan set for how you will report your company’s emissions data or have your 2020 goals set, but once you start moving forward, everything can change. It is easy to want to stick to what the original plan is, but don’t be stuck in the mud. Sustainability isn’t a linear path, and a good leader will know how to adapt.

3. Focusing on Day-to-Day Tasks

There are certain times of the year when sustainability professionals find themselves a bit busier than usual. It could be because you need to approve the final draft of your sustainability report and you need to make sure everything is perfect, or you could be completing a massive data collection process. Regardless of what you are doing, it becomes very easy to just focus on what needs to happen by the end of the day. The problem is that sustainability doesn’t end when a project does; sustainability is a long-term process. By only focusing on day-to-day tasks, you can lose sight on the long road ahead.

4. Making Excuses

When something doesn’t go our way, we tend to make excuses (and even if we try not to, we’re only human, after all). There are always opportunities for excuses: half of the data you need for a carbon footprint is missing, or you’re assigned over oversee a new sustainability project when you’re just someone from finance. Rise above the problem, and demonstrate why you’re a good leader.

5. Working Too Hard

You want to lead by example, so you show your coworkers how hard you work. That’s great, until you never take a break. Working long hours and skipping breaks will eventually catch up with you, whether it’s a lack of focus, increase in stress, or simply your physical health declining. No one wants to be around a leader that is constantly stressed out. Take a break every once in a while – your coworkers might thank you for it! Looking to focus your sustainability leadership? Find out how here!