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Creating Sustainable Value (for a Business)

The SSC Team August 23, 2018 Tags: , , , , , , , , Strategic Sustainability Consulting No comments
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Day in and day out, you likely encounter clients who question how sustainability will create value for their business. Let this video by Alexandre Magnin help you respond to their concerns so you can better work with them to incorporate sustainability into their strategy. Magnin’s video focuses on the Sustainable Value Framework (published in 2003 in the journal of the Academy of Management Executive).

https://sustainabilityillustrated.com/en/portfolio/creating-sustainable-value-business/


Are You Getting the Real Truth from Your Employees?

The SSC Team August 21, 2018 Tags: , , , , , , , , Strategic Sustainability Consulting No comments
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We know that lying is a part of life. All of us have told the occasional white lie, even at work. But when it comes to managing a business how often are your employees lying and more importantly, why are they bending the truth?

 

First, let’s take a look at how often employees lie. Harvard Business Review says that according to research “20% of people tell 80% of the lies, and 80% of people account for the remaining 20%.” So, the good news is that most of your employees are probably not lying; at least not very often.

 

Let’s get to the bottom of why employees lie. The 20% telling most of the lies often don’t see anything wrong with their deceit. Normally, things are going well for our deceitful employees when they lie and they “…do it when they are feeling good or in control of things – because they get a kick out of it.” Our frequent liars are also more likely to admit their deceitful ways if confronted.

 

But what about the majority of employees who make up the remaining 20%? Frequently their lies stem from stress, poor work/life balance, pressure to fit in with peers, or a lack of timely opportunities to tell the truth.

 

If we are able to acknowledge that our employees are going to tell lies (as are we) the next question is how to eliminate, or at least minimize harm. As we know, not all lies are negatively affecting business. If two employees don’t care for each other but claim to ‘like one another’ and cooperate, well, what’s the problem?

 

If you suspect you aren’t getting the truth slow down and take a closer look at the situation. Are you being honest with employees? Do employees have frequent opportunities to offer the truth and do leaders value that feedback? Are transparency and feedback a regular part of the day-to-day operation?

 

Feedback is essential to creating highly effective teams and thriving companies. But how can you ensure you are getting truthful, constructive feedback from your employees?

 

The simple answer is to just ask them. From using Survey Monkey to utilizing regular check-ins to hear how things are going, there are many ways companies solicit feedback

 

Additionally, you need to determine how much feedback you want. There is quite a spectrum of feedback out there. We’ve all likely been solicited for feedback by our leadership only to have it fall on deaf ears as more of a formality. Additionally, we’ve all probably been asked to provide feedback only to be met by a staunch defense that leaves us feeling, somehow, in the wrong for doing what we were asked to do.

 

“One of the biggest tragedies of mankind is people holding their opinions in their heads… they’re not dealing with the things they need to deal with,” Ray Dalio, Founder and CIO of Bridgewater Associates, told Adam Grant on his podcast Work Life.

 

Bridgewater is one of the biggest hedge fund firms in the world. Its culture is founded on something Dalio calls “radical transparency,” where all employees, from top to bottom, put “every criticism, every opinion, out in the open.” The newest, lowest ranking employee is encouraged to provide feedback as high up as the CEO.

 

So, is radical transparency right for your company? Probably not to the extent Bridgewater takes it. But according to Grant “… if we want to get better at something, we should go and learn from the extreme.”

 

At the end of the day, employees lie for a variety of reasons. It is not our responsibility as leaders in the organization to discover the origin of each lie and punish the instigator.

 

Instead, we can take a closer look at ourselves as leaders and our organizational culture. This can help us to discover the optimal level of transparency that motivates our teams to be more truthful and productive. 

TED Talk Kamal Meattle: How to Grow Fresh Air

The SSC Team August 16, 2018 Tags: , , , , , , , Strategic Sustainability Consulting No comments
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Everyone loves a good TED Talk! Here’s one of our favorites

From 2009, Kamal Meattle’s TED Talk is focused on how three common houseplants used in specific spots within a home or office building, can result in measurably cleaner indoor air. With the EPA lifting strict limits on air emissions, this creative thinking toward have fresh air to breath is more necessary than ever. Meattle’s New Delhi office is filled with air-filtering plants and sustainable architecture, making it a model green business. 

United We Understand: EcoPulse 2017 Special Report

The SSC Team August 9, 2018 Tags: , , , , , , , , , , Strategic Sustainability Consulting No comments

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White Paper: United We Understand
This special report released by GreenBiz earlier this year is centered around the idea that words have power. Are you choosing the ones that unify? Or the ones that divide?

In an age filled with divisive rhetoric, sustainability messaging can be a unifying force. Check out this report for ideas about how your company can create sustainability messages that help you connect with your consumer values.

 https://www.greenbiz.com/whitepaper/united-we-understand-eco-pulsetm-2017-special-report

5 Ways You can Promote Sustainability by Instilling Values In Your Organization

The SSC Team August 7, 2018 Tags: , , , , , , , , , Strategic Sustainability Consulting No comments
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It's a common problem in sustainability consulting: how do you get employees to pay attention to sustainability and integrate social and environmental considerations throughout their job responsibilities and daily behavior? New research in psychology has some insight, and we're diving in for a closer look at how focus on values and virtues can help drive organizational success.

In 5 Reasons You Need to Instill Values in Your Organization, Jessica Amortegui outlines the connection between good intentions and effective transformation in the workplace. "It is an old truism: employees do not turn to written statements on the company intranet for clues about how to behave--they look to each other," Amortegui writes. "If your goal is to intentionally shape the actions and interactions of employees, you know the importance of creating a 'values-based' culture. However, you also know how difficult it is to implement one."

She further adds: "For companies to truly close the chasm between their stated and lived values, they must enter the human psyche to extract excellence from the inside-out, not dictate it from outside-in. This requires organizations to pivot their approach: rather than get people to live the values, they should focus on the values that live in the people. This taps into the innate qualities that exist across mankind: human virtues."

There a lot more great information in the article (read it in its entirety here) with many helpful links to additional studies and research, but what caught our eye was how Amortegui's thinking could easily be applied to the sustainability work we do with clients. Below, we take excerpts from her list (in italics) and add our own commentary on how it applies to sustainability-oriented change management.

1. Virtues Are a Workplace Game Changer

Amortegui: Employees who feel welcome to express their authentic selves at work exhibit higher levels of organizational commitment, individual performance, and propensity to help others.

Just as Walmart found with their Personal Sustainability Projects, allowing employees to identify a sustainability-related behavior that was personally relevant and valuable was instrumental in creating corporate-wide momentum. Consider how you engage employees -- are you making it clear how "green" opportunities and expectations in the office allow them to bring their most authentic selves to the job?

2. Virtues Lead To Growth Of The Whole Person

Amortegui: The ideal company makes its best employees even better--and the least of them better than they ever thought they could be. Employees are not just looking for the best places to work. They want to join the best places to grow.  

Find ways to tie sustainability goals into personal growth opportunities. Whether it's allowing employees to practice a hands-on skill (how to build a rain barrel or the basics of composting), develop speaking skills (hosting brown-bag workshops on green topics), or engaging with senior managers (participating on the Green Team), make sure that you cultivate a clear link between the initiative itself and the opportunity it provides for participants.

3. Virtues Lead to Greater Onboarding Success

Amortegui: When companies emphasize newcomers' authentic best selves, versus an organizational identity, it contributes to greater customer satisfaction and employee retention after six months.

Start talking about the opportunities for employees to exhibit their personal values by contributing to the company's sustainability efforts from day one. Include an overview of your sustainability goals and strategy in new employee orientations.  Find out how their personal interests and virtues align with the organization and invite them to participate accordingly.

4. Virtues Improve Engagement

Amortegui: Two of the most important predictors of employee retention and satisfaction are reporting to use your top strengths at work and reporting that your manager recognizes your top strengths. 

The more that mid-level managers understand and communicate sustainability goals and priorities to their staff, the easier it will be for employees to "get" how their individual job responsibilities play into the larger picture of organizational sustainability. Provide the training and leadership needed to get managers to 1) understand, 2) communicate, and 3) recognize sustainability potential in their departments. 

5. Virtues Increase Self-Awareness

Amortegui: Organizations that realize this potent potential for human excellence will transcend their current cultures and create a greenhouse effect: shining brightness on what is best about their people while cultivating the conditions for any organizational value system to live, breathe, and flourish.

There is great knowledge within your workforce about the practical realities of achieving sustainability in the workplace, within your industry, and in your community. Companies that tap into that knowledge on a regular basis will find that they reap a myriad of rewards: enthusiasm, morale, expertise, and engagement. Why not take advantage of it!

Want to read more about employee engagement? Check out another article we wrote on the subject for 2degrees, Three Ways to Engage Non-Wired Employees.

Thanks to 2degrees for publishing a version of this article!

Sustainability Consulting Round-Up: Best of Our Blog from July 2018

The SSC Team August 2, 2018 Tags: , , , , , , , , , , , , Strategic Sustainability Consulting No comments
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We try to post a new blog at least once a week, just to share our insights into the world of sustainability strategy and what it takes to be a sustainability consultant or professional today. Here are our most-read posts from July.

 

Big Businesses Making Smarter Sustainable Choices

 

Motivate Your In-House Team to Meet Your Sustainability Goals

 

Why Standards Would Benefit the Green Finance Industry

 

Facility Managers: Putting Energy & Sustainability Practices to Work

  

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Why Standards Would Benefit the Green Finance Industry

The SSC Team July 26, 2018 Tags: , , , , , , , , , , , , , , , Strategic Sustainability Consulting No comments
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It’s safe to say we all agree that green efforts in any industry should be applauded and the same is true when it comes to finance. But while a desire for green finance continues to grow worldwide, how can investors and issuers best identify and evaluate risk when the industry has no standards?

It’s clear that the industry is seeing major growth. In 2017 the issuance of labeled green bonds (PDF) jumped to nearly $160 billion and the self-labeled U.S. green bond market more than doubled, powered by a mix of municipalities, states and large corporations. But as these new and innovative financing options are being established, it seems increasingly important that some mandatory standards be created to guide those working in the industry.

Standards in the world of green finance would be beneficial for both investors and for issuers. For investors who are building their green portfolios and need assurances of best practice and reliable ways to monitor the quality of green instruments — regardless of which geographies or industries they invest in — a sense of best practices and who is meeting them would clearly help with decision making. When it comes to issuers, common standards would clarify options in terms of issuance while also ensuring that deals are being appropriately structured and reaching the right investors for each project.

Standardization also serves to enable innovation because it establishes a level playing field. While ING was first to issue a sustainability rating-linked loan, they have since observed that other banks have embraced different set-ups. Five years ago, Climate Bonds Initiative (CBI) and the International Capital Markets Association (ICMA) both set out to establish a voluntary set of guiding principles for participants.

The framework from both organizations was focused on the process that needed to be followed when issuing green bonds: how issuers should describe the allocation of proceeds to investors; how a second opinion should be obtained; and how they should set about reporting in a transparent way.

And as a way to help kick-start the market, these served as helpful principles that could reassure investors and facilitate the uptake of green bonds, without being overly prescriptive about the use of the finance.

But the market has greatly expanded since 2013 and questions related to the use of green bond proceeds — their so-called "content" — have inevitably arisen: Which projects will qualify in specific sectors? Where should the boundaries be set? Where should classifications lean towards green or social bonds?

While CBI and ICMA with the input of other banks and stakeholders have continuously refined their earlier standards, the fact that the principles remain voluntary means that issuers do not need to follow them. On the flip side, if the standards around the industry become too settled, it will be difficult for the market to support the wide range of investor who would like to participate.

Who are these investors? Well the green finance industry has groups coming from varying green backgrounds, including investors with dedicated mandates for green bonds, investors with diversified portfolios that include pockets of green, and investors who find green bonds attractive but don’t have a dedicated mandate in place.

Because of their varying levels of commitment to being green, the investors might have different standards. Those with a dedicated green mandate are going to put potential issuers under much higher scrutiny than others.

And this is where there is a fine line to maintain between what investors want and expect, and what issuers want and need. It’s simply a fact that different industries are moving at different speeds when it comes to sustainability and different industries will face distinct challenges along the way. Within the investor community, there are a range of perceptions about standards and the various investment opportunities available.

Chief executive of the Loan Market Association, Clare Dawson, summed up the need for green finance standards perfectly, "With any new market, establishing a general framework for the product such as the Green Loan Principles (GLPs), which we recently launched, is beneficial as it helps create a common understanding of what people are looking at. We will be seeking to develop the GLP further to accommodate a wider range of loan structures, including revolving credit facilities, to maximize the number of borrowers able to take out green loans."

While issuers and investors have managed admirably with a voluntary patchwork of existing guidelines this far, a fresh set of commonly adopted standards will be the key to allowing green markets to expand. If these standards put the emphasis on process over content, it should create better conditions for green markets to thrive in future. And that’s great news for everyone.

Motivate Your In-House Team to Meet Your Sustainability Goals

The SSC Team July 24, 2018 Tags: , , , , , , , , , , , Strategic Sustainability Consulting No comments
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Convincing employees to work hard and work well is a millennia-old management challenge. Hundreds of studies point to proven motivational tactics, such as goal setting, feedback, and incentives, but all of these tactics can (and will) backfire.

“Chances are that you (at least sometimes) are using the wrong tools under the wrong circumstances,” writes Juliana Schroeder, a behavioral economist and psychologist.

Using feedback effectively

  • Use positive feedback to enhance personal commitment. For example, if you’re ramping up the arduous data collection process that goes along with a complex, detailed life-cycle assessment, that’s when you want to use encouraging words. We can do this!
  • Use negative feedback when you’re nearing the finish line. So data collection starts off well with everyone ready to get going and get the project done, but you get into a lull midway as the engineers and logistics folks are tired of taking your calls, that’s when you might want to roll out some stern warnings about being a team player and calling your supervisor.

Goal Setting

“Typically, a shorter distance between you and your goal is more motivating than a longer one,” writes Schroeder. “It feels within reach, and it’s easier to feel that you’re making progress. This means people should set closer targets or sub-goals.”

Using the same example from above, don’t kick off your LCA talking about the mountains of data we shall climb, instead map out with a consultant who has experience with LCA reporting a reasonable set of milestones for data collection inside of various processes identified. And when you see a big knot to untangle, break it into smaller pieces and set goals based on achieving the sub-goals.

“Focusing on the least amount of distance—either from the start or from the end of your project— is more motivating,” said Schroeder.

This means, don’t look up when you’re at the bottom, and don’t look down when you’re at the top.

Focus on the middle stages

“Research has found that people are more likely to slack off or behave unethically around the middle of a project,” said Schroeder.

Take this into consideration when project planning. If your team can quickly identify what the onerous parts of the job will be, and take on those early wince folks will still be motivated to perform well. In the middle, focus on the low-hanging fruit, like collecting the utility or transportation data or info you can get from third party vendors. If big obstacles pop up in the middle, try and work around them and save them to the end to tap into the motivation folks feel right as a project is wrapping up.

Incentives

If your company has the structure to provide incentives, don’t hesitate to use them. But don't go overboard.

“People will work harder for incentives they can get sooner—even if they are smaller than those they would get after waiting longer. The lesson here is simple: To motivate people, use immediate incentives,” said Schroeder.

If a team has a goal, structure small incentives for the manager or team member that help validate the hard work put in. Consider an extra day off for completing the work on time or a group luncheon after every major milestone.

“People also seem to value intrinsic incentives more when they are in the middle of pursuing a goal than when they have not yet started,” said Schroeder.

When working on sustainability projects, help frame the work in terms of the intrinsic benefits to the team members, to the company, and to company strategy focused on reducing environmental impact. Ideally this will already be a part of the company’s strategic plan, but capitalize on the feeling that employees have when they can take pride in working on a project that goes beyond the bottom line.

Selecting motivational tools can be complicated, especially keeping them fresh and appealing to meet the changing needs of employees. But, if you haven’t yet taken a strategic look at motivation, now is a great time to start.

Need to launch a life-cycle assessment or carbon footprint in 2018? We can guide you through the process and help keep your team motivated along the way.

Sustainability Consulting Round-Up: Best of Our Blog from June 2018

The SSC Team July 3, 2018 Tags: , , , , , , , , , , , , , , , , , , , , Strategic Sustainability Consulting No comments
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We try to post a new blog at least once a week, just to share our insights into the world of sustainability strategy and what it takes to be a sustainability consultant or professional today. Here are our most-read posts from June.

 

Mining Companies Can Care

 

Triple Bottom Line: The Science of Good Business

 

Keeping Your Sustainability Team Engaged- Words to Live By

 

Taking the Trash to a Whole New Level

  

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Straight Talk with the CEO to Get Better Sustainability Results

The SSC Team June 26, 2018 Tags: , , , , , , , , , , Strategic Sustainability Consulting No comments
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Sustainability decisions and reports are data-heavy. And not only that, sustainability data may be unfamiliar to many, including your own CEO.

One of the worst things a sustainability executive or sustainability consultant can do is jargon-speak and data-overload when presenting to corporate leadership.

“Too many executives overestimate the CEO’s understanding of, and desire for, detailed functional data. Many of the best CEOs are generalists who lack deep expertise in most functional areas,” writes Joel Trammell for Entrepreneur.

Remember that the CEO, and in many cases other executives, are relying on you – either as an consultant or as the in-house expert – to analyze the functional data and deliver your expert opinion on that data.

Here are Trammell’s three tips for turning down the data noise and turning up the sustainability signal to get better results:

  1. Keep the big picture in mind. Deliver “concise insight” into how a sustainability program is tracking on goals and how those goals are supporting the company’s overarching goals. Drop the details, and focus on impact.
  2. Focus on the future. When talking about a new sustainability program or report, focus on how the results of the report are going to affect the company’s future performance. Asking for an expensive LCA? Don’t dwell on the cost of the actual LCA assessment, instead frame the ask around how the LCA will “identify risk.” And, by identifying risk the LCA will give guidance on mitigating it, and the result will be long-term, low-risk operations in a more sustainable marketplace. Win!
  3. Ask for support when you need it. “Only the CEO can mitigate conflicts between departments and allocate resources where they are most needed,” said Trammell. This is especially important for sustainability executives, as we are trusted with advising and changing how other departments operate. Not everyone likes change. If you are feeling push back from purchasing on the new sustainable purchasing processes, directly provide guidance on how the CEO can proactively remove barriers in purchasing so he or she can see the positive results you promised from the program (Note: Don’t tattle. Keep it professional with clear action steps from the CEO).

By focusing on the big picture, the future, and framing how your role is working with and for other departments, you can keep your communication with the CEO focused and relevant.

Are you looking to pitch to company executives, but need to translate sustainability performance in a language that the C-suite understands? Let us know!