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

Tag leadership

Using Risk as a Lens for Sustainability Decision-Making

The SSC Team October 1, 2015 Tags: , , Strategic Sustainability Consulting No comments

Dispatch from SSC President Jennifer Woofter

I often tell clients that sustainability is not a stand-alone concepts, but a lens through which  companies can make good business decisions. It's another set of criteria, another flowchart of questions, that lead to optimal choices.

That said, sustainability is not a perfect lens in and of itself. Sure, there are sustainability concepts and frameworks (like materiality, zero waste, and The Natural Step) that aim to provide guidance on how to think about sustainability, and protocols on how to use sustainability to make decisions. But I find that it's often lackluster -- at the end of the materiality process, or the Natural Step "ABCD process" we often look around the table and say "okay, that seems reasonable, but what does it mean for ACTUAL planning for next quarter? And what does it tell us about changes needed for next year's budget?"

Here is where risk, and it's associated tools, comes in. By marrying traditional risk assessment, mitigation, and adaptation methodologies with sustainability concepts, we can start to answer questions like:

  • How likely is it that climate change is going to have a significant impact on our operations in the next three years?
  • How big of an impact is water scarcity going to be for our supply chain in the next decade?
  • How resilient is our business to labor unrest in Asia?
  • Of all the options for adapting to increasing sustainability regulation, which ones are likely to be the most effective?

There is SO MUCH WORK to be done at the intersection of sustainability and risk. It's really exciting work, and if you've done any reading on the subject lately, I'd love to hear your thoughts in the comments below! 

5 Ways to Benchmark Your Sustainability Performance

The SSC Team September 24, 2015 Tags: , , , , Strategic Sustainability Consulting No comments
A dispatch from SSC President Jennifer Woofter As we work with clients to advance their sustainability journey, we're always looking for ways to slice and dice the information we gather. I thought it might be helpful to share some of the common ways we analyze an organization's performance:

Company Now vs. Company Then

How does the client's current performance compare against it's performance in the past (1 year ago, 5 years ago, etc.). This works best when we've been working with a client for a while and can judge how much progress has been made since our initial assessment.

Company vs. Industry Peers

We look at client performance against a representative peer group -- so for example, a midsize mining company would be compared against other midsize mining companies.

Company vs. Industry Leaders

We look at client performance against the sustainability leaders in the industry -- so we might compare a midsize mining client against the current mining constituents of the Dow Jones Sustainability Index (DJSI).

Company vs. Value Chain Partners

We look at the client's performance against its key upstream suppliers and downstream customers. This analysis provides great insight into risk mapping and alignment -- is the client paying attention to the things its customers care about?

Company vs Sustainability Standard

Comparing a client's sustainability performance against other external standards (ISO 14001, GRI, CDP, SASB, DJSI, etc.) is another way to spot omissions and mis-alignment. It can also help to spot the areas where the standards overlap -- where the client may get the most bang for the buck in closing a gap. What other ways to benchmark are we missing? Let us know in the comments!

RILA’s 2015 Retail Energy Management Report: 3 Takeaways

The SSC Team September 22, 2015 Tags: , , , , Strategic Sustainability Consulting No comments

By: Alexandra Kueller

Last week, we took a look at RILA’s Retail Sustainability Management Report, and today we’ll be looking at RILA’s Retail Energy Management Report.

Earlier this year, the Retail Industry Leaders Association (RILA) announced their brand new Retail Energy Management Maturity Matrix, which hopes to be a tool that will be used by retail executives, individual companies, and industry-wide to help companies focus on energy management. In September 2015, RILA released their Retail Energy Management Report that uses the matrix to analyze energy management initiatives from over 100,000 RILA member companies.

Taking the 23 dimensions related to energy management RILA has identified from six key sectors, the report looks at where the companies rank in terms of maturity: are they starting, just standard, excelling, leading, or at the next practice already. RILA presents their key findings from each dimension, then provides resources for companies to reach the next level, case studies to look over, and how to get involved on a greater scale.

Here are three observations that really stood out to us:

Dedicated energy management teams

At 85%, a large majority of the retailers surveyed indicated they have at least one fill time energy staff person, with the average company retaining about 3 full time staff members. Despite only 15% of respondents not having a full time energy management staffer, roughly 50% of the companies indicated that they use a third-party or consultant to help with their energy management. With energy management often linked to sustainability, less than 25% of the energy teams report to their company’s sustainability/CSR department, instead a lot of the energy teams report to either the Facilities or Real Estate departments.

Continuous energy management improvement

From 2014 to 2015, all dimensions except for five saw improvement in overall energy management. The sectors People & Tools and Energy Consuming Systems saw the biggest gains, with almost every dimension hitting the maturity level of “standard”. While there weren’t significant strides from last year (except for “Food Service”), the growth is still positive. As more robust energy teams and goals are put in place, there will hopefully be an increase in energy management maturity in the future.

No one has hit a plateau

And speaking of increasing energy management over the next couple of years, many retailers indicated that there are many new initiatives in place. RILA has even forecasted that many of these new initiatives, plans, and goals will help push many of the retailers to an average maturity level of “excelling”, with some companies reaching “leading” status. Even retailers that are currently at “leading” or “next practice” have indicated that more work is going to be done with energy management within their company.

Looking to start a new sustainability project but need to gain support? Find out ways to gain that support for your new project or idea here!

3 Observations from RILA’s Retail Sustainability Management Report

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

By: Alexandra Kueller

This past spring, the Retail Industry Leaders Association (RILA) announced their brand new Retail Sustainability Management Maturity Matrix, which hopes to be a tool that will be used by retail executives, individual companies, and industry-wide to help companies become more sustainable. Fast-forward to September 2015, and RILA just released their Retail Sustainability Management Report that uses that matrix to analyze sustainability initiatives from over 50,000 RILA member companies.

Taking the 27 dimensions related to sustainability management RILA has identified from seven key sectors, the report looks at where a lot of the companies rank: are they starting, just standard, excelling, leading, or at the next practice already. RILA presents their key findings from each dimension, then provides resources for companies to reach the next level, case studies to look over, and how to get involved on a greater scale.

Here are three observations that really stood out to us:

What comprises a retail-based sustainability team?

RILA offered a breakdown of how many retailer’s sustainability teams look like, and over 50% of those surveyed indicated that there is one person or no full time employee dedicated to sustainability (and a surprising 10% of companies have 10 or more people working on sustainability full time). Often times, the sustainability team will set the sustainability goals for the company, but almost a quarter of the retailers said they do not have sustainability goals. And in terms of budgeting for sustainability, almost 75% of companies said their budget either stayed the same or increased over the past year.

The leaders are well ahead of the pack

When looking at how the retailers did across all dimensions, it becomes apparent most companies are falling firmly in the "standard" category (or rather a 2 on a 1-5 scale). But the leading companies aren't just one or two steps higher, they are already at the "next practice" level (or a 5 on a 1-5 scale). Looking at all of the dimensions, over half the time the leading company was getting top marks - only in 4 dimensions was the leading retailer at the "excelling" level (or a 3 on a 1-5 scale). Leading companies obviously know what they're doing when it comes to sustainability, so now there needs to be an effort to get everyone else up to their level.

A shift to the supply chain

Overall, the supply chain section was one of the weakest, with many companies falling between the “starting” and “standard" category, but as retailers begin to solidify their internal sustainability, there is a growing focus on supply chain sustainability. Companies have started to engage suppliers about various sustainability issues, such as the need to reduce energy and water.

Looking to start a new sustainability project but need to gain support? Find out ways to gain that support for your new project or idea here!

How Sustainability Practitioners Should Give Feedback

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

Enjoy this article from the SSC blog archives:

As consultants, it's our job to deliver feedback to our clients throughout the sustainability consulting engagement--and we've gotten pretty good at identifying, refining, and delivering news (both good and bad) about a company's "state of sustainability" and roadmap for action. But when we read the article, Don’t Sugarcoat Negative Feedback, in Harvard Business Review, we realized that the art of providing feedback has a much broader application to companies pursuing sustainability initiatives. Here are some of our takeaways:

USE FACTS IN YOUR FEEDBACK

Berglas: Deliver constructive feedback rapidly in its raw form. This doesn’t mean harshly; there’s a way to soften blows without delaying them if you strive to be empathic. Just never make it seem like you’re avoiding hard cold facts. All that does is make the facts seem worse than they are.

Focusing our feedback on facts is a great way to create some space between participants, so that no one feels blamed, guilty, or shamed. It also allows everyone to (more) objectively assess the situation--including whether the feedback being provided is correct, how a solution should be constructed, and how responsibility and accountability for change should be allocated.

Wrong: [After 20 minutes of praise and exultation about everyone's awesome sustainability work.] "Look, even though we're all doing our best, it's not enough. We're falling behind on our performance data, and that's shown up in some recent press. We can't let our industry leave us in the dust. Come on, guys, we've got to improve!"

Right: "Our three-year carbon emissions are up 4.3%, while Competitor A is holding steady and Competitor B actually decreased its emissions by 1.1%. A report, which is getting press coverage this week in the New York Times and a number of "green blogs", calls us out for poor energy and climate performance in our industry. Let's talk about what that means in light of last month's board meeting where there was consensus about aiming for the top 25% of our industry across all sustainability issues."

DON'T PREDICT THE OUTCOME

Berglas: Resist the urge to prophesy. The absolute worst thing a CEO, coach, or consultant can do when offering constructive criticism to someone is to provide a timetable for the process that a person who must change should be expected to conform to.

While goals and targets are critical elements of effective sustainability planning, changing people (and institutions) is an uncertain process. When you need to address employee engagement and organizational culture issues, don't make promises that you can't keep. Yes, you can get a new Code of Ethics in place by the end of the year, but can you put a clear time line on when your emerging-market suppliers are going to really *get* the concepts of anti-bribery and corruption? You can provide a clear road-map, but putting calendar dates down for personal and organizational change is a dangerous proposition.

BE HONEST ABOUT THE EFFORT REQUIRED TO CHANGE

Berglas: Don’t minimize the challenge. When you critique someone with a history of success you have to assume that the flaws you see in them are (a) entrenched, and, (b) something they have long grappled with to suppress or get past. Saying, “No big deal” to that sort of issue can scare the socks off someone who knows that what you’re targeting for change is an issue they have battled unsuccessfully for years.

Sustainability is probably the biggest, most complex challenge that the world has ever faced -- and individual organizations trying to navigate a highly interconnected system in which it has limited leverage and resources is not an easy task. (Hah, understatement!) So don't portray the journey as all rainbows and kittens. It's going to be hard, and there are going to be really tough decisions. People need to understand that the road is going to be long, and the challenges are going to be scary--but that all great, epic adventures start with a seemingly insurmountable mountain to climb.

Looking to start a new sustainability project but need to gain support? Find out ways to gain that support for your new project or idea here!

Supporting Habitat for Humanity’s Women Build Initiative

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

By: Alexandra Kueller

At Strategic Sustainability Consulting, we are huge supporters of paying it forward and giving back to the global community. One of the ways that we give back is by supporting Habitat for Humanity. We are proud of the efforts they put forward to provide homes for those in need, and we are always excited when they are able to build sustainable, energy-efficient housing!

Recently, a close friend of SSC, Roya Khaleeli, mentioned she was participating in Habitat for Humanity's Women Build initiative, and wanting to get involved in some capacity ourselves, we donated some money to Women Build. Women Build aims to bring over 13,000 women together from around the world to allow women-only teams build over 2,300 homes together. This is a wonderful opportunity for women to not only help give back to their communities, but it also empowers them with new skills they might not have had before.

We are eager to see the amazing results from the upcoming Women Build events, and we are excited to hear how these women are changing the lives of others.

What Sustainability Practitioners Need to Know About Water

The SSC Team September 8, 2015 Tags: , , , , , , , , , , , , Strategic Sustainability Consulting No comments
Enjoy this article from the SSC blog archives: While carbon emissions management and reporting tend to be the first "big picture" sustainability issues that companies tackle, water is poised to become "the next big thing" in terms of corporate sustainability risk management. As always, we're staying on top of it--culling through the best resources and guides to help our clients effectively tackle the issue. Because we love to share- and don't want to re-create the wheel- here are three articles that bring home the most important tools, concepts, and frameworks related to corporate water management. Enjoy!

The four pillars of water risk assessment

In this economic climate and as part of our natural lives we are all familiar with undertaking risk assessments in our everyday professional and personal existence; from the most basic travel decisions ensuring punctuality, to the most comprehensive health and safety issues ensuring the safety of our colleagues in the workplace.

How far away is a standardised approach to water reporting? 

With corporate awareness of water-related risk growing exponentially, so the demand for a standard means of measuring and reporting water usage increases. Katharine Earley explores current practice in benchmarking usage at a global level, and examines the tools and guidelines available to companies as they unravel the complex web of their water footprint.

Reporting water risks: A step-by-step guide

An increasing number of companies are experiencing detrimental water-related business impacts, including operational or supply chain disruptions and property damage from flooding, to name a few. These impacts can be costly -- in 2011 they cost some companies up to $200 million -- and have caught the attention of investors around the world. To make the reporting process easier, WRI has aligned its Aqueduct Water Risk Atlas with CDP’s water questionnaire. If you are interested in corporate water management, you'll love our free white paper Every Last Drop: Water and the Sustainable Business. Got another water resource to share? Leave a comment, or talk to us on Twitter (@jenniferwoofter).

What Sustainability Practitioners Need to Know About Water

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

Enjoy this article from the SSC blog archives:

While carbon emissions management and reporting tend to be the first "big picture" sustainability issues that companies tackle, water is poised to become "the next big thing" in terms of corporate sustainability risk management. As always, we're staying on top of it--culling through the best resources and guides to help our clients effectively tackle the issue.

Because we love to share- and don't want to re-create the wheel- here are three articles that bring home the most important tools, concepts, and frameworks related to corporate water management. Enjoy!

The four pillars of water risk assessment 

In this economic climate and as part of our natural lives we are all familiar with undertaking risk assessments in our everyday professional and personal existence; from the most basic travel decisions ensuring punctuality, to the most comprehensive health and safety issues ensuring the safety of our colleagues in the workplace.

How far away is a standardised approach to water reporting? 

With corporate awareness of water-related risk growing exponentially, so the demand for a standard means of measuring and reporting water usage increases. Katharine Earley explores current practice in benchmarking usage at a global level, and examines the tools and guidelines available to companies as they unravel the complex web of their water footprint. 

Reporting water risks: A step-by-step guide 

An increasing number of companies are experiencing detrimental water-related business impacts, including operational or supply chain disruptions and property damage from flooding, to name a few. These impacts can be costly -- in 2011 they cost some companies up to $200 million -- and have caught the attention of investors around the world. To make the reporting process easier, WRI has aligned its Aqueduct Water Risk Atlas with CDP’s water questionnaire. 

If you are interested in corporate water management, you'll love our free white paper Every Last Drop: Water and the Sustainable Business. Got another water resource to share? Leave a comment, or talk to us on Twitter (@jenniferwoofter).

6 Ways to Gain Support for Your New Sustainability Project

The SSC Team September 3, 2015 Tags: , , , , Strategic Sustainability Consulting No comments

By: Alexandra Kueller

You’re a member of your company’s sustainability team, and you just thought of a brand new sustainability project for your company to undertake. This project will not only help better the environment, but also help save the company money! But what’s the hold up? Often, like many other new projects and ideas, sustainability-related projects get lost in the shuffle.  

In a Harvard Business Review article called “A Guide to Winning Support for Your New Idea or Project", author Rebecca Knight discusses several ways you can win support and get people on board for your new project. We decided to add a sustainability twist to her idea and help you find new ways to gain momentum for your new sustainability project.

1. Understand What’s Motivating You

If you want to successfully pitch and sell your new idea, be sure you are able to explain why. If you want your company to undertake a carbon footprint, it’s a good idea to have a response that goes beyond “it can help the environment in the long run.” Identify why you think your company should invest resources into a carbon footprint and be able to articulate those thoughts.

2. Think Small

Sure, it would be great if every company could have a top-to-bottom sustainability makeover, but unfortunately that’s not the reality. Business still have actual businesses to run and can’t throw an endless supply of resources to the sustainability team. Think small, and try to get as specific as possible. The more precise you are with your goals and outcomes, the better chance you have to get people to respond. It’s much easier to dismiss a large, lofty goal than something that seems more tangible.

3. Gather Feedback

You might think that proposing a materiality assessment is a great idea, but what do your coworkers think? If you find yourself with colleagues who might have interest in the idea, present it in an informal manner, such as “What do you think of our company going through a materiality assessment?” You’ll be able to quickly hear any concerns or questions they might have, allowing you to tighten up your plan to make sure it is a sure-fire success.

4. Sell, Sell, Sell

As Knight mentions in her article, selling your idea is more of a campaign than a singular event. If you want your company to undergo a life cycle assessment, bring up the idea – often. This is when you need to market your idea and get as many people on board as you can. Make your coworkers understand what a life cycle assessment is and why it’s important for your company to complete one; try to get as much agreement as you can.

5. Propose a Pilot

Perhaps you have initial support for your idea of publishing an annual sustainability report, but there’s still some pushback. Instead of having an “all or nothing” mentality, suggest writing a rough skeleton outline of a sustainability report. This way people can get a better sense of what a report would look like, and it’s a fairly low time commitment. And if the sustainability report isn’t approved, minimal resources were wasted.

6. Don’t Get Discouraged

No matter what type of work you are doing, any time someone doesn’t approve of a new project or idea you suggested, it’s easy to get discouraged. Instead, gather feedback. Was your idea for a waste audit shot down because of budgeting reasons or rather your bosses needed some more time to think on it? Just because your project wasn’t accepted initially doesn’t mean there isn’t a chance to complete your waste audit in the future. Keep your head up and continue to advocate for sustainability projects within your company.

Are simple mistakes holding back your sustainability? Find out how to correct those mistakes here!

Carbon Risk Assessment in the Financial Sector

The SSC Team August 4, 2015 Tags: , , , , , , , , Strategic Sustainability Consulting No comments
By: Mirele B. Goldsmith How can financial institutions and individuals factor climate change into their decisions about investments?  This question was considered at a meeting hosted by Moody’s Investors Service on Paving the Road to Paris COP21: Discussing Carbon Risk Assessment Strategies on July 27, 2015.  (The list of speakers may be found here.) Those of us focused on sustainability are well aware that over time climate change will impact every aspect of the economy.  The finance sector is facing this fact now that governments are beginning to introduce regulation requiring disclosure of the risks that climate change poses to investors. At the meeting there was a lot of talk about France, where legislation has just been proposed to require disclosure of climate risk.  China is also considering legislation.  The European Union already requires pension funds to consider climate risk.  The SEC requires that companies disclose material risks from climate change, although the speakers described this requirement as “toothless.” What risks could climate change pose to financial returns?   The most obvious risk is that companies will be impacted physically (operator risks) and investors will bear the costs. The risk that seems to be most on the minds of experts is changes in policy.  As one speaker put it, “it is becoming more expensive to pollute.”  Changes in technology which may make businesses obsolete or lead to falling prices are another risk.  And there are reputational risks. Much of the meeting focused on just how the financial risks of climate change can be quantified.  The two big sources of uncertainty are first, that we don’t know how much and what kinds of actions will be taken to mitigate climate change.  And second, we don’t know how much the climate will change.  Risk projections are usually informed by past experience, but there is no historical data that can be used to build and test models of climate risk. The speakers presented several tools that are designed to help investors at various levels incorporate climate into their risk assessments.  Speakers from the World Resources Institute and UNEP Finance Initiative gave an overview of their Carbon Asset Risk Discussion Framework.  The framework, which provides questions to ask but no answers, provides a structured approach to assess exposure to climate risk, valuate, and manage it.  Mercer has released a report on Investing in a Time of Climate Change that is meant to help investors assess their portfolios using four climate-risk factors to assess exposure under four possible climate scenarios.  Mercer’s approach is more user-friendly because it provides answers based on assumptions about how investments in certain sectors and regions will be impacted under specific scenarios.  However, given how much is unknown, this approach obviously requires making a lot of assumptions.  2 Degrees Investing Initiative has worked with UNEP Inquiry and CDC Climat Research to produce a review of various approaches to carbon risk assessment: Financial Risk and the Transition to a Low Carbon Economy.  The Bloomberg Carbon Risk Valuation Tool (available to Bloomberg subscribers) was also mentioned in passing. This meeting was focused on technical questions about how to assess climate risk in order to protect financial institutions and individual investors. However the speakers also alluded to the critical need to mobilize the influence of financial markets to accelerate action to mitigate climate change.   On this point, speaker after speaker emphasized the issue of the difference in time horizons for investment decisions and the major risks to investments from climate change.  Most investment decisions are made for 2-10 years, while these experts expect to see major impacts on investments from climate change only in 25-30 years.  In order to leverage the power of markets to address climate change something will have to change. Mirele B. Goldsmith is an environmental psychologist, program evaluator, and activist.  She is an expert in how to change human behavior – the key to solving environmental problems and building a sustainable future.  Mirele’s clients include community-based organizations, associations, and businesses, that are engaging employees, tenants, board members, and constituents, in saving energy, reducing waste, educating about sustainability, and advocating for change.  Mirele is a certified SSC Green Auditor and the principal of Green Strides Consulting.