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If Your Investors Are Assessing Your Climate Risk, Shouldn’t You Be?

The SSC Team June 7, 2018 Tags: , , , , , , Strategic Sustainability Consulting No comments
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Enjoy this post from the SSC Archives. 

 

A few summer ago, the World Resources Institute and the UNEP Finance Initiative consulted with more than 100 energy, climate, and finance experts to create a discussion framework for investors to weigh exposure to the risks of climate change.

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

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

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

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

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

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

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

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

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

The SSC Team May 31, 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 May.

 

Sustainability Strategy Isn't a Checklist

 

Data or Your Gut? Understanding Your True ROI

 

3 Questions to Make Sustainable Decisions

 

5 Minute Video: Making Your Business Case for Sustainability

  

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Data or Your Gut? Understanding Your True ROI

The SSC Team May 8, 2018 Tags: , , , Strategic Sustainability Consulting No comments
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When it comes to business there will probably never be an end to the discussion of return on investment talk. But it’s important to remember that while financial returns may be easier to document and demonstrate, there is a lot of "data" that's simply subjective, part of the institutional knowledge, or coming from the expert you've hired that you clearly expect to trust. When all these issues are floating around the world of statistics, here’s why going with your "gut" isn't wrong.

 

In the world of sustainability measuring your ROI cannot be based on stats alone. Sure, if you reduce your energy and water usage it’s great to watch your bill go down. However the bigger savings is the enormous — and less immediately clear — impact that these efforts are having on the environment. What’s more important? Saving $50 or reducing your carbon footprint? Hopefully it’s the second one.

 

Paul Marushka adds to the narrative by examining how a “prove it” mentality challenges the value that environmental health and safety bring to the workforce. Despite our obsession with being able to use data to prove the worth of an initiative, sometimes we simply know the intrinsic value in something. Even if there aren’t stats to back it up. Marushka uses the former CEO of Alcoa as an example of what significant results can be achieved without having data to support the efforts: After he challenged the company to become the world’s safest, Alcoa saw an increase in earnings of 600 percent with sales growing by 15 percent per year during a 5-year period. Seems pretty clear that you can prove to leadership the value of investing in environmental health and safety — even if you don’t have software to examine everything and back you up.

 

Because when it comes to sustainability you have to look past the simple dollar value of your business efforts. There may be other ways to measure ROI. Although these efforts may be less tangible immediately, as a business owner you should start trusting your instincts. In a piece for Inc., Peter Kozodoy brought up a unique concept: how trusting your instincts over hard data could help you make better business decisions. And science is supporting the notion that your intuition is there to help you.

 

In a report published in Psychological Science Joel Pearson, an associate professor of psychology at the University of New South Wales, and his research team found evidence that people can use their intuition to make better, faster, more accurate and more confident decisions. Considering how much we tend to cling to data in the business world, this may seen like an unreliable option, however Pearson’s study showed that surrounding ourselves with more positive, subliminal inputs not only helps us make better choices, but it helps us to trust those choices. Engaging in this concept of picking up on other’s subconscious messages could explain why some folks get "luckier" than others — they always have the uncanny ability to spot exceptional business ideas, or seem to find the best people to work with. Individuals who are more in tune with their intuition over what statistic might tell them may be coming out ahead.

 

As you continue forward in your sustainability efforts, remember that your decisions shouldn’t be based on stats alone. There are a little of elements to consider and numbers don’t always tell the full story. 

Sustainability Strategy Isn’t a Checklist

The SSC Team May 3, 2018 Tags: , , , , , , Strategic Sustainability Consulting No comments
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Enjoy this post from the SSC Archives. 

 

There are a lot of business books out there that provide templates for business plans and checklists. And having a plan and a checklist is important for any project or start-up, but developing a business strategy or incorporating sustainability into a business strategy isn’t a series of items to check off of a “to-do list.”

Even if you went through and commissioned and then checked off an annual sustainability report, a carbon footprint, a life-cycle analysis, et cetera, there is no guarantee that your organization would even be close to executing a true sustainability strategy.

Sustainability strategy should be based on an organizational understanding of why you need to invest in assessing and reducing your environmental impact. Without understanding why, you risk wasting time and money on projects that don’t align with the overall business strategy and stakeholder needs.

After determining why sustainability is important to the organization, you should focus on materiality, or what are the most important or impactful steps the organization can make inside of a realistic timeframe or budget or deadline.

Finally, look to experts to develop a proven path forward that speaks to both the materiality and the underlying corporate strategy on this issue.

For example, if your company is a small manufacturing firm held accountable to demanding suppliers or upcoming environmental regulations, but you have no clear idea on your environmental impact, then your why may be “we need to know what we are facing so we can answer questions of our stakeholders with honesty and confidence.”

Next, is materiality – are suppliers or regulators more important? Can they be addressed through the same sustainability tool or report?

If you determine through a materiality assessment that your suppliers are the most important stakeholder group to address first, next, consider what information they are demanding, in what format, and by when. In the example case of manufacturing, this may be be collecting LCA data for a supplier scorecard or more pulling together even more thorough data for a third-party environmental or human product declaration (EPD/HPD) report.

Essentially, sustainability strategy should be tailored as carefully as marketing strategy or pricing strategy.

Company leadership should clearly understand why the sustainability efforts are integral to the success of the company, how important they are to the stakeholders who drive that success to help prioritize efforts, and which strategic path forward to take to meet stakeholder needs best.

SSC not only delivers excellent sustainability consulting services, we are focused on ensuring our clients choose the service, and level of service, that will meet their real business goals

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

The SSC Team May 1, 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 April.

 

Guests, Properties Need to Coordinate in Minimizing Food Waste

 

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

 

Listen Up: Companies Should Not Be Afraid to Get Political

 

Becoming a Better Sustainability Consultant: Understanding Your Client’s Industry

 

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

The SSC Team April 12, 2018 Tags: , , , , , , , Strategic Sustainability Consulting No comments
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Enjoy this post from the SSC Archives. 

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!

Becoming a Better Sustainability Consultant: Understanding Your Client’s Industry

The SSC Team April 5, 2018 Tags: , , , , Strategic Sustainability Consulting No comments
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Do you often wonder how you could become a better sustainability consultant? Check out Strategic Sustainability Consulting President Jennifer Woofter’s monthly tip to help you gain knowledge that will better help you serve your clients. After listening to this month’s tip about focusing on the unique industry of each client, we invite you to share your questions in the comments below.

https://youtu.be/YfA9C7455FU

 

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

The SSC Team April 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 March.

 

The Importance of Creating a Diverse Work Team

 

How to Earn the Respect as a Sustainability Leader

 

How Does HR Fit into Sustainability?

 

Free Learning Resources for Aspiring Sustainability Professionals

 

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There is Room to Grow for Suppliers Tackling Sustainability

The SSC Team March 27, 2018 Tags: , , , , , Strategic Sustainability Consulting No comments
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Let’s start with the positive news. When it comes to implementing more sustainable sourcing practices, a recently published Stanford University study, which focused on large global suppliers, found that more than 50% of the companies reviewed have been implementing these practices. Not surprisingly companies with valuable brands (and therefore a more vocal customer base) were the most likely to be utilizing sustainable practices.

 

But Cassandra Sweet notes in There’s Room for Progress on Tackling Sustainability Through the Supply Chain, that while this is great news, the study also found that companies lower down the supply chain — where changes to their social and environmental practices would be more beneficial — have been less likely to implement sustainable practices.

 

To complete their research, 449 publicly traded companies from a variety of sectors were examined in order to evaluate the extent to which their efforts were going to impact the United Nations Sustainable Development Goals. And from this evaluation, it was clear that progress is being made. This portion of the study was focused on industry giants like L’Oreal and Coca-Cola Co. who, among others, have been making big adjustments. These include training their suppliers to help reduce or reuse plastic packaging, address climate change and promote sustainable production among other areas. Coca-Cola Co. has also been providing training to the farmers who supply them in order to help promote sustainable agriculture, gender equity, and fair working conditions.

 

With this good news, we now need to focus our attention on non-consumer-facing companies who haven’ t been as committed to implementing sustainable practices yet. Unfortunately supply-chain sustainable implementations aren’t as likely to drive change at a global scale unless a lot more companies start to utilize sustainable sourcing practices. Sweet raises the important issue that these practices need to be strong, verifiable, address a broad set of sustainability issues and reach all tiers of global supply chains.

 

Here’s the thing, so many companies are going half in when it comes to making sustainable changes. An example that Sweet highlights is when a company focuses on ensuring that one product ingredient is sustainably sourced, without paying any attention to other ingredients. Or by making sure that the packaging of a product is made from recycled materials, but at the same time the product contained within that packaging is not sustainably sourced.

 

Do you feel like your company is falling into this gray zone and could do better? If so, you will benefit from connecting with a sustainability consultant. You might be struggling to understand the complex world of corporate social responsibility, wondering how you can translate your values into actions, and unsure how to prioritize your social and environmental initiatives, but we can help! At Strategic Sustainability Consulting we can work with you to kick off your sustainability journey and help you understand the strengths, challenges, and best-fit sustainability strategy for your company, in your industry, to meet your stakeholder needs, right now. 

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

The SSC Team March 1, 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 February.

How to Improve Client Outreach

 

The Four Big Social Media Mistakes Your Company Is Probably Making

 

Straight Talk with the CEO to get Better Sustainability Results

 

If you like an article, please consider sharing it online via your favorite social media platform. Helping us grow our audience is the #1 way you can show your support for the work that we do.