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Should You Pare Down Your Sustainability Agenda?

The SSC Team August 27, 2015 Tags: , , , , , , Strategic Sustainability Consulting No comments
Enjoy this blog from the SSC archives: At the beginning of the year, a lot of people find themselves making long lists of things to achieve over the next 12 months. And ambitious sustainability agendas are no exception--it seems like we're always being pushed to do more, move faster, and achieve greater sustainability performance. After all -- we know that global challenges can't be solved by half-measures. Today, we're challenging the idea that you must do "better" sustainability by doing "more" sustainability-related activities. Instead, let's look at the benefits of doing less. And we'll start by reviewing an article called The Art of Adding by Taking Away by Matthew E. May, published last January in The New York Times. May begins his article with a quote from ancient Chinese philosopher Lao Tzu: “To attain knowledge, add things every day. To attain wisdom, subtract things every day. Profit comes from what is there, usefulness from what is not there.” This saying sparked something in May, who began to investigate the logic of problem solving by taking things away: "It dawned on me that I’d been looking at my problem in the wrong way. As is natural and intuitive, I had been looking at what to do, rather than what not to do. But as soon as I shifted my perspective, I was able to complete the project successfully." May finds that there are many ways to tie the "doing more by doing less" thinking into the business world:
  • By removing distractions, companies can focus on what really matters.
  • By searching for patterns and finding common elements, companies can spot opportunities earlier and streamline decision-making.
  • By removing product features, companies can drive innovation and reach new audiences.
So what does this mean for sustainability practitioners? Take a hard look at your company's sustainability activities -- are they clearly aligned and focused with your business strategy? Are they designed to mitigate your biggest environmental and social impacts? Are they responsive to your key stakeholders? Or...are your company's sustainability activities spread too thin and flow in so many directions it is difficult to adequately keep track of them? If your sustainability agenda doesn't revolve around a clear strategy, it's time to get off the merry-go-round and do a little paring. Here's what we suggest:
  • Conduct a materiality assessment to identify and prioritize your (internal and external) stakeholders and what they care about. This will give you a short list of sustainability topics that are the most important, and a longer list of "nice to have" activities to tackle as time permits.
  • Assess each of your existing sustainability activities against a materiality matrix. If you find that activities are falling outside of the "must have" sustainability priorities, you should consider redirecting resources to more important places.
  • Develop guidelines to help you address the importance, effectiveness, and urgency of any new activities under consideration. This will keep you on the straight and narrow going forward.
If you'd like some help in conducting a materiality assessment, please contact us! We love to take clients through this process--it's enlightening, empowering, and energizing to identify what's important (and what you can leave behind). In the meantime, we love May's final advice about how to apply this thinking to your own life: "First, create a “not to do” list to accompany your to-do list. Give careful thought to prioritizing your goals, projects and tasks, then eliminate the bottom 20 percent of the list — forever." "Second, ask those who matter to you most — clients, colleagues, family members and friends — what they would like you to stop doing. Warning: you may be surprised at just how long the list is." "The lesson I’ve learned from my pursuit of less is powerful in its simplicity: when you remove just the right things in just the right way, something good happens." Have you tried this approach? We'd love to hear what you're giving up in 2014, and what you're making more room to do! Leave us a comment or join the conversation on Twitter.

Using Sustainability to Avoid Risk

The SSC Team August 25, 2015 Tags: , , , , , , , , , , , Strategic Sustainability Consulting No comments
Enjoy this blog from the SSC archives: The evidence that sustainability can be good for business is overwhelming. Most of the case studies, examples, and analysis that has been done show positive links between a sustainable approach to environmental and social issues, and corporate profits, Thus far, the research has been primarily focused on direct operational efficiencies (like retrofitting your office lighting to save money and reduce your carbon footprint), innovation (using biomimicry to drive new product development), and productivity (ie. more engaged employees take less sick leave). However, there hasn't been as much talk about the nexus between sustainability and risk management. And for corporations operating in complex supply chains in a globally-connected economy -- well -- effective risk management can be the difference between success and failure. Below, we take a look at three articles that shed light on why companies still struggle to incorporate sustainability into their risk management practices (and vice versa).

Has sustainability become a risky business? 

This GreenBiz article by John Davies reviews a report by Ernst & Young. The key takeaway: While more companies are concerned about increased risk and the proximity of natural resource shortages, corporate risk response appears to be inadequate to address the scope and scale of some of these challenges. The free report looks at six corporate sustainability trends with a strong focus on the internal influencers of corporate performance (CEOs and boards), as well as external forces ranging from governments to shareholders and investors.

Playing It Safe Is Riskier than You Think

This article by Bill Taylor in the Harvard Business Review makes the case that "difficult and uncertain times are often the best times for organizations to separate themselves from the pack, so long as their leaders are prepared not to stand pat." While not directly about sustainability, this article certainly supports the notion that economic turmoil is no reason not to be ambitious about tackling big sustainability challenges.

Research: Why Companies Keep Getting Blind-Sided by Risk

by Mary Driscoll in the Harvard Business Review presents fascinating insight into why companies (and their executives) are not succeeding at identifying and mitigating risk. Survey findings indicate that most organizations’ leaders did indeed express concern about the impact of political turmoil, natural disasters, or extreme weather. But the findings also show that the people at the front lines of the business were hamstrung by a lack of visibility into risk. Nearly half said they lacked the resources needed to adequately assess business continuity programs at supplier sites. Many relied on the suppliers filling out perfunctory, unreliable checklists. There are some big lessons here for sustainability practitioners! Are simple mistakes holding back your sustainability? Find out how to correct those mistakes here!

Reducing and Managing Food Waste presented by ITP’s Green Hotelier

Tara Hughes July 31, 2015 Tags: , , , , , , , , , , , , , Industry News No comments
FOOD WASTE

Reducing and Managing Food Waste in Hotels presented by Green Hotelier

Join us for a complimentary webinar about Reducing and Managing Food Waste presented by AGPOM’s Partner International Tourism Partnership on September 24th.

Register heregreen hotelier

 

 

 

 

 

 

 

 

Every bit of food you throw away costs you and the environment.

According to UNEP, roughly one third of the food produced in the world for human consumption every year – approximately 1.3 billion tonnes – gets lost or wasted. Additionally, according to the Food Waste Alliance, 68m tonnes of food waste are produced each year in the US, with around 39.7m tonnes going to landfill or incineration. One third of this is from full and quick service (QSR) restaurants. The saddest part is 842 million people in the world do not have enough to eat.

What’s the environmental issues cased by food waste?

  • When food rots it creates methane (CH4) which has 21 times the global warming potential of carbon dioxide
  • Every time food is wasted, the water, energy, time, manpower, land, fertilizer, fuel, packaging and MONEY put into growing, preparing, storing, transporting, cooking the food is wasted.
  • If food waste was a country, it would be the world’s 3rd largest emitter of CO2

Reduced Waste = Reduced Expenses

By taking a few simple steps to waste less and recycle more, and by working out the cost of food waste to the business, hotels can reap financial as well as environmental benefits. Read more

Grow Your Sustainability Consultancy Business by Speaking Your Client’s Language

The SSC Team July 7, 2015 Tags: , , , , , , , , , , , , , , , , , , , , , Strategic Sustainability Consulting No comments
Enjoy this blog from the SSC archives: So, you know all about your prospective client and you’ve decided on the strongest business case for sustainability for their situation. Now it’s time to win them over and solidify the relationship with a smashing proposal or pitch.

1) Don’t think of a pitch as a sell, think of it as an educational opportunity

Don’t worry so much about whether or not the client is going to hire you at the time you are meeting with them. Instead, treat it like a customized webinar or mini-conference where you are showcasing your knowledge about sustainability, the realities of where the economy is heading, their specific opportunities in relation to sustainability, and what they will need to do to get ahead and effectively adopt sustainability in their corporate strategic framework. You are just showing them the raw ingredients, while keeping a hold of the recipe. 

2) Start at the very beginning, a very good place to start

So, you know all about sustainability. And you know all about your prospective client. Unfortunately, your audience, be it the CEO or a mid-level executive, may not know much more about sustainability than “I think it costs a lot, but everybody seems to be doing it.” Clear that up right away with a brief definition of strategic sustainability – use the definition you use for your own consultancy. Make sure the client know that sustainability is a business framework, not a philanthropic or public relations gesture. Drop a few names, too – Wal-Mart, GE, Nike, Rio Tinto, Toyota. It doesn’t hurt for your client to know that they are joining the ranks of commerce’s elite.

3) Stress the long term and a future of change

“Fundamentally, corporate sustainability is about exploring the next way your company will be successful, because almost all the things you currently rely on -- energy, supply chain, consumers, investors, regulation -- are going to change,” said David Bent from the non-profit sustainability organization Forum for the Future in a blog series for Greenbiz.com. Changing times demand that companies factor in future risks, such as rising energy prices, increased regulation, and pressure from consumers, into their strategic plans. Since many of these future risks and market changes are going to stem from environmental and social concerns, integrating sustainability principles into the corporate framework now, to address these issues now, isn’t just a “cost” to the business, it’s an investment in the future risk management. “You can’t predict ‘the’ future, but you had better be prepared for possible futures with a portfolio of strategies – and a business case – that ‘future-proof the company’ by diversifying your risk going forward,” advises Gil Friend, founder and CEO of Natural Logic. You must stress this fact to prospective clients – they will probably have to become sustainable eventually, but they might as well make some money doing it proactively instead of reactively. Just be sure to avoid scare tactics or pressure. The fact is: the world is changing, and change can be good.

4) Look to frame sustainability as a driver for innovation and opportunity

Find examples of “play-to-win” organizations that have used sustainability to tap into new opportunities (destroying the competition in the process) to help sell the concept. Companies are inherently competitive, but often are mired in a “compliance mentality.” Remind your audience that business is a battlefield; you might be able to tap into that competitive spirit. Use what you know about the company’s competitors or industry to highlight how the sustainability program may get them ahead of the game.

5) Present the client’s customized business case in a language that everyone can understand – shareholder value

It’s meat and potatoes time. You’ve briefly discussed sustainability, the risk of not acting, and the opportunity gained by taking action. Next is what they’ve all been waiting for – the business case. At this point, be fairly specific about what you feel the key “value drivers” of a sustainability program will be for this specific organization. First, present the business case. For example, an engineering firm with a zillion vacancies on its “careers” page and a reputation of an ‘old boys club’ may benefit from a sustainability program stressing competitive advantage – a program that will help its recruitment program, shape its industry, and help it become an early mover on new and emerging areas for growth (like green design, perhaps). Second, present the projected investment (in time and money) and the estimated return on investment (ROI). According to Friend, the business case has to provide a clear ROI in the financial, operational, and strategic dimensions. But be clear that ROI in sustainability isn’t only about short-term dollars and cents. When you are talking about elements like “recruitment” and “industry shaping,” be sure to clarify that these, albeit not short-term financial returns, are “indirect” returns. While direct returns include costs (lighting retrofits or waste-reduction), indirect returns ( impacts on brand reputational value, employee productivity and retention, product quality, community goodwill, etc.) can open companies to new business as much as any marketing plan while helping reduce risk. For an in-depth discussion on costing for sustainability, check out the book Making Sustainability Work by Marc Epstein. Third, use statistics, examples, graphics, and best practices, briefly but effectively, to back up your claims on how your proposed programs can directly affect shareholder value through direct and indirect returns. Finally, give the client a path on how a sustainability program for this value driver might be incorporated into their organizational framework.

6) Don’t frighten them off

Although you may have made an amazing pitch with ROI analysis that just can’t be denied, a client may still balk. “But we don’t have $150,000 for a lighting retrofit, even if we know it will save us $300,000 over the next six years…” Yes, it may be ideal if you could tackle each value driver head on, re-write the strategic plan, and reorganize the company, but, more likely, the financial minds at your prospect’s firm are going to be reluctant to loosen the purse strings. To help ease them into the process (and help you begin to form a long, trusting relationship), break it down into steps. Begin with saying, “Now that I’ve presented the strategic sustainability framework that will eventually deliver the most value to your organization, let’s talk about where we begin. Every journey starts with a series of small steps…” At this point, have one or two programs that will work as small but effective pilot programs for this broader sustainability plan. Try to find the one or two manageable programs with the lowest-hanging, least expensive fruit, and suggest that the client give them a try first. The pilots will help you build credibility with the CFO’s office, as well as awareness throughout the rest of the organization. Hopefully by achieving documented success with the first few pilot programs, the company will continue to draw on your services to expand into the more complex strategic development of their sustainability program (that you were the architect of).

7) Be straightforward about the business relationship

Once you’ve delivered the presentation (no more than an hour of their time) and have some concrete offerings available for them (green audits, waste audits, pilot ‘Green Team’ programs, stakeholder engagement initiatives, or whatever your other pilot programs were) be ready for questions. Know how long each program will take and what it may cost if they suddenly want to go whole hog. Be prepared to answer detailed questions about customer service, your ‘next steps’ in project development, your experience, your resources, costs of your service, as well as costs directly to them (retrofits, training investments, life-cycle-analyses, etc.) and the overall estimated ROI for each suggested program. Instead of spending your time trying to convince the client through testimonials of how great you are, just do what you do best: consult them. Show them what you know and use examples from research or from your past experience to illustrate how they, too, can meet their goals, transform their business, reduce their risk, and increase shareholder value through sustainability. You are simply the person with the tools to help them get the process started. Find out how you can become a better sustainability leader in one of our latest blogs.

Greening Your Non-Profit from the Inside Out

The SSC Team June 25, 2015 Tags: , , , , , , , , , , , , , , , , , , , , , , , Strategic Sustainability Consulting No comments
Enjoy this blog post from the SSC archives: Why is environmental responsibility important to an organization’s bottom line?  What are key impacts?  What does your organization’s carbon footprint look like?  Where should you begin?  These questions and more are addressed in an excellent resource that is easy-to-use and only a download away.  If you work for a non-profit or if you have non-profit clients, this is something that you will want to take a look at. “Greening Your Non-Profit from the Inside Out: A NeighborWorks® Guide for Community Development Organizations” essentially serves as a handbook that was designed to provide community development organizations with an easy-to-use resource for taking the first steps towards “going green”. Using the results of the sustainability action plans from 2008, NeighborWorks developed a manual and online course entitled “Greening Your Nonprofit Business” in 2009. The manual, produced in conjunction with Strategic Sustainability Consulting, is available free online to all network organizations and to the broader community development field to help them take steps toward environmental sustainability. The manual has been downloaded 24,000+ times since its publication in 2009, making it one of the most popular downloads on www.nw.org.  Once you start to skim you’ll quickly realize why it’s a top download and how it is still relevant today. It begins with a general introduction to the topic of environmental sustainability and prepares you for the following chapters that dive into specific green action items to get you started.  Divided into eleven “green” topics ranging from energy efficiency to customer communication, each section provides a wealth of information.  Statistics, case studies, recommendations, and other resources will help you to understand the environmental impacts of each topic and how to go about minimizing that impact in a simple, cost-effective way.  Because there is no “one size fits all” solution to going green, the manual includes website links to some of the best organizations working on the issue—where you can find a solution tailored to fit your circumstances.  This information is organized so that you can quickly find the information you need. In case you didn’t already know, we partner and work with NeighborWorks on a lot of different projects and have found their dual mission to be a perfect match for what we have to offer as well.  NeighborWorks America is the country’s leader in affordable housing and community development, working to create opportunities for lower-income people to live in affordable homes in safe, sustainable neighborhoods that are healthy places for families to grow.  NeighborWorks commits to being a leader with its network in employing and promoting equitable, green and sustainable practices for the long-term benefit of the environment so that people can live and work in healthy, ecologically friendly, and affordable places.  Learn more here and download the manual today! Find out how you can become a better sustainability leader in one of our latest blogs.

Workplace Movement Toward Environmental Sustainability – Pt. 2

The SSC Team May 7, 2015 Tags: , , , , , , , , , , , , , Strategic Sustainability Consulting No comments
By: Alexandra Kueller Two weeks ago, we introduced the Retail Industry Leaders Association’s (RILA) brand new Retail Sustainability Management Maturity Matrix. The Matrix hopes to be a tool that will be used by sustainability executives, individual companies, and industry-wide. We also noted that while the Matrix is designed with the retail industry in mind, we think that is has a wide applicability beyond just the retail sector. Last week, we discussed the first three sectors that are featured in the Matrix. Today we are focusing on the final four of the seven sectors. Hoping to provide a more in-depth look at how RILA hopes to benchmark across the industry in terms of environmental sustainability, we are going to look at what it would take for a company to become a leader in that sector.

Retail Operations

Environmental sustainability extends to all aspects of a company, including their retail operations. Whether it is a store or corporate offices, a company should be putting in effort to make these areas as sustainable as possible, such as having facilities be LEED certified. Other ways to make your retail operations more "green" can include incorporating green standards for all new warehousing and participating in the ENERGY STAR program. The Retail Operations sector has three different dimensions:
  • Store/Corporate Offices
  • Warehouses/DCs
  • Data Center & Applications

Supply Chain

Supply chain sustainability might not be the first aspect of a company's sustainability plan to come to mind, but it is no less important than any other aspect. To be a leader in the retail industry when it comes to supply chain sustainability, a company must demonstrate the reduction of environmental impact through the optimization of transportation, work closely with suppliers to help improve their sustainability metrics, and be more transparent when it comes to audit statistics (e.g., percent of non-compliant factories). The Supply Chain sector has three different dimensions:
  • Transportation/Logistics
  • Supplier Engagement
  • Supply Chain Transparency & Traceability

Products

When someone thinks of a retail organization and sustainability, often times their first thought is "how sustainable is the product?" RILA recognizes that product sustainability is a key component in a company's overall environmental sustainability and offers some suggestions on how to be a leader when it comes to making a company's product more sustainable. Some examples are using renewable energy sources during manufacturing, offering take-back services, and designing products with a "cradle to cradle" outlook. The Products sector has three different dimensions:
  • Product & Packaging Design and Development
  • Owned Manufacturing/Production
  • Product & Packaging End-Of-Life Stewardship

Environmental Issues

And finally, true environmental sustainability cannot happen if a company does not focus on the environmental issues at hand. How a company addresses these issues - energy, waste, recycling, etc. - in the context of the retail sector is telling, and some industry leaders are already paving the way. Some of these companies are implementing leading waste technologies and policies, establishing green chemistry programs that helps reduce toxins, recycling and reusing water, using alternative energies, and more. The Environmental Issues sector has four different dimensions:
  • Energy & GHG Emissions
  • Water & Wastewater
  • Waste & Recycling
  • Chemical & Toxics
Last fall we attended the annual RILA Sustainability Conference. Read about some of our thoughts on the conference here.