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How to Set Carbon Reduction Goals

The SSC Team February 16, 2017 Tags: , , , Strategic Sustainability Consulting No comments

Enjoy this post from the SSC archives.

Based on a presentation by the EPA, we picked up some great nuggets of advice for companies seeking to establish credible and meaningful carbon reduction goals.

KEY COMPONENTS OF A CREDIBLE GHG REDUCTION STRATEGY:

  • Begin with a corporate-wide GHG inventory (base year) of Scope 1 and 2 emissions, with Scope 3 emissions included if relevant to the goal. Annual tracking and reporting of progress is a must!
  • Build an emissions inventory plan, which institutionalizes progress and ensures high quality data. Make sure you know where the data is coming from, who is responsible for managing it, and where (and why) assumptions are being made.
  • Determine a GHG reduction goal, based on a complete and verified inventory. While independent, 3rd party-verification is best, it can be expensive. Consider beginning with an internal auditing and assurance process.

WHAT MAKES A STRONG CARBON REDUCTION GOAL?

  • Absolute reductions are important--don't just rely on efficiency improvements to lower carbon-per-product, carbon-per-revenue, or carbon-per employee trends.
  • Consider your company's goals against projected GHG performance in your sector--are you aligned with industry expectations? (And if you are wildly different from your peers, do you have a good reason as to why you are different?)
  • Goals should be achievable within 10-12 years--ambitious enough to need a decade to execute, but not so lofty as to lose touch with reality.
  • Public commitment from a company's executive leadership adds credibility and gravitas to the goal!
  • Make it specific to your company's operations, and beyond "business as usual".

ADDITIONAL CONSIDERATIONS WHEN SETTING CARBON REDUCTION GOALS:

  • Align your goals with what science tells us is necessary for climate-balance. For example, the IPCC recommends reductions of 20-30% by 2020, and 80% by 2050 (from 1990 levels).
  • Frequently review your emissions inventory for completeness, accuracy, and relevance. Determining your carbon footprint boundaries and data sources isn't a one-time process. It should evolve as your company evolves.

Want more information? Check out our carbon footprinting and CDP Reporting services, and download our white paper on the impact of employee commuting on your company's carbon footprint!

The Business Case for Sustainability

The SSC Team January 12, 2017 Tags: , , , , , Strategic Sustainability Consulting No comments

Enjoy this post from the SSC Archives. 

Each year we try and start fresh, assuming that our potential clients may be learning about sustainability strategy from a practical implementation standpoint for the very first time.

Even though this post is from our archives, this webinar presented by, SSC President Jennifer Woofter called "The Business Case for Sustainability" presented to the DC chapter of Net Impact a few years back is a great primer on  how to identify, calculate, and prioritize social and environmental benefits to organizations.

We recorded the session, and you can watch it here! 

Some people still think that implementing sustainability might be great for the company's image, but bad for its bottom line. Nothing could be further from the truth, and you will learn how sustainability makes both Sense and Cents. 

Over the course of the webinar we will identify key areas where "going green" can pay off, calculate basic savings opportunities for energy, water, transportation and other issues, and understand basic financial models for calculating return on investment (ROI). We will also discuss how to value a company's reputation, brand image, and stakeholder relationships, as well as how to reduce certain costs borne by the company. We will focus on the following areas and demonstrate with real-life case studies: 

  • Economic: Promoting business excellence and maintaining the highest ethical standards 
  • Social: Engaging with community and exemplifying corporate responsibility 
  • Environmental: Employing green building practices and minimizing carbon emissions

 If you found this webinar helpful, you may also want to check out our white paper, Sustainability Through the Value Chain.  For a complimentary conversation about the topics in the webinar or white paper, please contact us.

Sustainability Progress Check: Manufacturing Firms in the Architecture and Engineering Industry – Sustainability Lessons from ArchitectureBoston Expo (ABX)

The SSC Team January 5, 2017 Tags: , , , , , , , , , Strategic Sustainability Consulting No comments

In November, we headed out to ArchitectureBoston Expo (ABX) to get the pulse on sustainability from the perspective of architects, engineers, builders, contractors, manufacturers, and other AEC professionals. We spoke to dozens of representatives from the more than 400 exhibitors about sustainability programs, sustainability strategy, and what they think of it all.

Our conversations resulted in two really great questions:

Additionally, we took extra time and conducted a survey specifically targeted at companies that manufacture products (as opposed to service providers and distributors) used in the AEC field to delve deeper into what types of companies are doing what types of sustainability programs and why.

We gathered survey results from 30 manufacturers ranging in size from 1-10 employees to 550+ employees to gauge their sustainability performance and pressure from stakeholders. Exactly ⅓ of the respondents are doing little to no work in sustainability - not tracking any metrics other than those required by law and, in most cases, offering LEED credits. On the flip side, ⅓ have completed full sustainability reports and many had done EPDs, HPDs, and/or LCAs or carbon footprints for their core business. The remaining ⅓ was - obviously - somewhere in the middle, having a largely uncoordinated sustainability program that has been pieced together based on stakeholder pressure - certifications, submitting energy or water or supply chain data based on customer requests.

Essentially, the industry seemed evenly split with regard to tracking sustainability information, but as predicted, the companies with the most employees and most visible global brands are doing the most work and completing more comprehensive analysis - and seeing financial returns on their sustainability efforts. The larger the company, the more resources to dedicate to sustainability, the more they benefit.

However, companies across the board reported that they were feeling pressure from stakeholders - whether architects or builders or developers - to report more thoroughly on sustainability. More than 42 percent of respondents said they have been asked for carbon footprint data, LCA, and/or HPDs/EPDs in the past year. Nearly 30 percent of respondents have been asked for specific data points - water use, supply chain certifications, energy use, and/or waste information. An additional 7 percent have been asked by shareholders or clients for a full sustainability report.

Although stakeholders are asking for information, very few draw hard lines when the information isn’t readily available, with companies noting that the frequency of being asked for the information is increasing, but they have yet to feel a negative effect for not having the information on hand.

The question is: When will the critical tipping point be reached when an LCA or EPD or HPD be required as a standard part of an RFP for a major construction project, and will the ⅔ of companies with little to no comprehensive data be ready in time to be competitive on the project?

The average GRI-compliant sustainability report, an HPD or EPD, or a comprehensive, third-party verified life-cycle assessment can take more than six months to complete, start to finish. And the investment in a sustainability project for a small to medium sized manufacturing firm can range from tens of thousands of dollars to 10-times that amount...

So what should your company do? 

We believe it’s time for companies to build a sustainability reporting strategy into the overall operating budget so all of the reporting mechanisms and comprehensive data are on-hand when that critical tipping point is reached.

The next questions are:

  • What type of reporting should your business be focused on?
  • What should you budget for sustainability?
  • How do you use the sustainability tools to your competitive advantage?

Luckily, with more than 10 years’ experience in the field, we can answer all of these questions for you in less than it cost to attend ABX in the first place.

We encourage all of our potential clients to invest in training for their employees so they understand the advantages of strategic sustainability implementation, the material issues for the industry segment you compete in, what your peers are doing, and how you can take a leadership role in sustainability through effective planning.

Instead of engaging us for a year-long life-cycle assessment project, when you really just need an EPD or to start your first annual sustainability report, take advantage of our 1-Day Sustainability Assessment and Rapid-Decision Making Workshop. For a fraction of the cost of your sustainability program, we will guide you and your team through

  • Sustainability 101
  • Give you our recommendations for the best-course for your company
  • Facilitate a rapid-decision making discussion to further narrow down a path forward that meets your company's needs, budget, resources, and goals. 

We'd love to hear from you! Check out our full service offerings and submit a contact form and we'll be happy to schedule a 15-minute phone call to help you clarify next steps on your sustainability journey.

 

 

Is your sustainability strategy too complicated?

The SSC Team January 3, 2017 Tags: , , , , Strategic Sustainability Consulting No comments

 Enjoy this post from the SSC archives.

You can't be all things to all people, and neither can an effective sustainability strategy. Companies that try to do everything (such as go carbon neutral, hire local, move to 100% telecommuting, redesign products to be zero waste, offer vegan lunch options in the cafeteria, install a rooftop garden, and retrofit the building) lack the focus to make truly meaningful change.

Instead, companies having the most effective sustainability plans are usually laser sharp in their sustainability strategy -- identifying just a couple of key leverage points to guide all subsequent sustainability decisions. That's what we recommend to clients (cover your bases, but choose to excel in one area at a time). 

But even with a straightforward and strategic sustainability plan, sometimes the message to stakeholders gets muddled. So how do you know if you are telling a simple and compelling sustainability story? In a recent article in Fast Company, The 10 Questions Every Brand Should Ask To Ensure It's Simple Enough, author Margaret Molloy gave some great insight. (While she is talking about branding, we think it applies equally well to sustainability communications.) 

Below, we've amended the 10 questions that Molloy poses in order to present them in a sustainability context.

  • Is senior leadership committed to providing a simpler sustainability story?
  • Do I know what our brand’s sustainability purpose is, and is it articulated in a simple, memorable, and inspiring way?
  • Do we have the tools in place to get everyone to consistently deliver on our sustainability purpose?
  • Have we made it as simple as possible to innovate at our company?
  • Is our brand deeply focused on what drives sustainability preference within the market?
  • Are our sustainability messages in sync with the customer experience?
  • Do customers share our view of who we are and what we want to be?
  • Are the sustainability aspects of our products and services clear and easy to navigate?
  • Do we know the sustainability issues where simplicity would be most appreciated and inspire greater loyalty?
  • Do we have a simple road map for the customer journey?

We recommend you read Molloy's entire article for additional insight. It really got us thinking...and we bet it will spark a discussion around your office's water cooler, too.

Thanks to 2degrees for publishing the article on their website!

Need more information on creating a good sustainability strategy?  Read our white paper, Sustainability Change Management:  We've Had the Green Audit, Now What?

 

Future of the FSC: What Happens When Manufacturers Reject Certification? Sustainability Lessons from ArchitectureBoston Expo (ABX)

The SSC Team December 22, 2016 Tags: , , , , Strategic Sustainability Consulting No comments

Last month, we headed out to ArchitectureBoston Expo (ABX) to get the pulse on sustainability from the perspective of architects, engineers, builders, contractors, manufacturers, and other AEC professionals. We spoke to dozens of representatives from the more than 400 exhibitors about sustainability programs, sustainability strategy, and what they think of it all.

Our conversations resulted in two really great questions:

Additionally, we took extra time and conducted a survey specifically targeted at companies that manufacture products (as opposed to service providers and distributors) used in the AEC field to delve deeper into what types of companies are doing what types of sustainability programs and why. Come back on Thursday to see what we’ve learned!

Future of the FSC: What Happens When Manufacturers Reject Certification?

Many of the manufacturing companies we spoke with manufactured some sort of wood product for the built space. Either importing wood from other continents or harvesting here in the United States and Canada, almost all of them said that they were “FSC Certified.”

But there’s a catch.

Nearly all of the company representatives, once they understood we weren’t potential clients and we just wanted to discuss sustainability certifications, immediately had a lot more to say.

One of the company representatives said, “We’re not renewing our FSC certification next year.”

Another said, “Yeah, we are FSC Certified, but we really don’t need to be.”

Another said, “I just don’t think FSC Certification is going to be around in a couple of years. We’re spending money on something to put on our labels or our website that fundamentally doesn’t change how we manage the forests we harvest from anyway.”

His point, like many was that most FSC Certified and non-FSC certified companies selling (specifically) hardwood products understand that sustainable forest management is the only way to not drive yourself out of business.

They have to manage the forest well. Replant. Use every bit of byproduct to maximize efficiency and profits. And the FSC Certification doesn’t change any of that, it just costs money to certify to doing something they would do regardless. Most companies in this industry sector must demonstrating best practice so they go out of business like the Once-ler and his Truffula trees.

What’s next for wood?

It will be interesting to see if the FSC Certification does fade away, but what will be more interesting is to see what’s next in the cutting-edge of sustainability from the wood products segment. Is importing South American hardwood or South African hardwood preferable to a material that is made from North American hardwood (assuming we live in North America)? Are there going to be wood substitutes that are more sustainable to manufacture from a life-cycle perspective? What metric does the FSC Certification miss that can actually demonstrate how different wood products companies are impacting the environment?

If the FSC is out, then something else needs to step in

Wood, in and of itself, isn’t a “renewable resource.” Active forestry management practices need to be in place to “renew” the resource, and there is always room for improvement.

Are you in the wood products industry and are thinking of giving up on FSC Certification? Tell us why in the comments.

Check back for Part 3 in our ABX series in January: What should your manufacturing company be doing right now to improve environmental and social impact? 

6 Ways to Get Executive Buy In for Sustainability

The SSC Team December 6, 2016 Tags: , , , , Strategic Sustainability Consulting No comments

Enjoy this post from the SSC Archives.

What do executives have in common with school kids? They both can be pretty picky. So when we read 6 Quick Lessons from the School Lunch Line for Pleasing Picky Customers, we realized that the tips applied equally well when trying to convince company executives to green-light a sustainability project. We've taken the article's six lessons which are listed below, and added our own commentary.

1. INVOLVE THEM INTO THE PROCESS.

It's easier to get approval for something when the person you are trying to convince feels ownership of it -- so ask for input and solicit feedback as you begin to plan and refine your proposal. Find out what makes your executives tick (cost savings, innovation, beating a competitor, etc.) and work that aspect into your pitch.

2. GIVE A NOD TO WHAT THEY KNOW.

If you can build on an existing program or process that is well-tested and well-loved, all the better. Anything you can do to reduce the risk (or perceived risk) of a new sustainability venture will make it more palatable for executives to swallow.

3. FREE SAMPLES NEVER HURT.

Can you give executives a taste of what's to come? Whether it's the results of a small pilot study ("Look, in just a week we saved $568- Imagine what we could do by rolling out this program company wide!") or a tangible thing to hold (a prototype of a new product), giving people a "bite" to try before committing to the whole meal can lower their resistance to something new. 

4. USE PEER DYNAMICS. PEOPLE ARE NATURALLY COMPETITIVE.

Sometimes you can use C-Suite dynamics to your advantage -- but tread carefully. You may find that certain executives are eager to prove themselves. That may mean that they challenge each other to find better and better sustainability initiatives. (Or it may mean that they undercut each other -- so again, be thoughtful in how you play office politics.) Alternately, consider framing your idea in terms of your company versus your competition. How can your initiative help leapfrog over your industry peers? How can it help you stay competitive? How can it open new markets that others haven't yet spotted?

5. DON’T GIVE UP IMMEDIATELY.

Anyone who has tried to sell their idea at the executive level has probably already learned this lesson, but it's worth repeating. It's unlikely that any significant initiative will get immediate approval -- so think early and often about how to introduce a phased approach, or plan your requests so that executives have plenty of time to consider and decide. 

6. ON THE OTHER HAND, ACCEPT YOUR LIMITATIONS.

Sometimes you just have to let it go. If executives are dead set against your program, move on. The beautiful thing about sustainability is that there is never a shortage of great ideas. So find the next one and start planning. (And don't forget that it's possible that your timing was just off -- keep your rejected idea in a drawer somewhere. It might be just what's needed six months from now!)

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

If you are interested in reading more on this topic, check out our blog post: Does Your Executive Team Really Understand Your Sustainability Strategy?

 

Incorporating 30 Elements of Consumer Value to Maximize Sustainability Returns

The SSC Team December 1, 2016 Tags: , , , , , , , Strategic Sustainability Consulting No comments

Occasionally we run across an article that is so jam packed with information and application to the world of corporate sustainability that we don't want to summarize a single word.

Instead, we recommend you stop what you're doing right now and read every single word of the recent article, The Elements of Value, from the September issue of the Harvard Business Review.

The article's implications for how B2C companies can position their own sustainability activities to generate consumer value are invaluable ways to approach sustainability strategy in product and service design and development. 

Yes. Mind. Blown.

Now that you're really understanding how this can truly transform your business, contact us so we can help get you on the path. The hardest part is usually the first step. We're here to help.

 

Integrate Total Cost of Ownership with Your LCA to Make Sustainable Choices

The SSC Team November 17, 2016 Tags: , , , Strategic Sustainability Consulting No comments

Sustainability professionals speak the language of quantifying carbon emissions. Most other business professionals, however, speak the language of currency. Budgets. Market fluctuations. Stock price. Cost of materials or labor.

For most procurement professionals, pricing out goods and services generally means looking at the bottom line cost per unit over time. For example, a restaurant chain looking at cloth versus paper napkins is factoring in the annual cost of purchasing and disposing of paper napkins versus the prorated annual cost of purchasing, laundering, and replacing cloth napkins over their useful life. It’s dollars and cents.

Where natural capital accounting is a way to present the balance sheet of an organization by factoring in environmental impact, total cost of ownership, or TCO, helps firms better integrate sustainability information into the procurement process.

By taking the LCA data and drilling into each stage in the life cycle and calculating an environmental “cost,” a firm can create a TCO framework for a product or service. Or, better yet, can create better procurement guidelines based on optimal TCO variables that balance environmental and financial choices.

A Big Leap

TCO work is not easy. It requires firms to “dive deep into the value chain, and look at factors including manufacturing time, costs of parts, research and development, and environmental sustainability. This includes emissions from suppliers as well as those of consumers using the products and services.”

However, by using TCO purchasing practices firms are finding new business opportunities by meeting the increasing demands of consumers seeking “green” goods and services, decreased overall costs as waste reductions are targeted, and helps firms focus on the long term benefits of spending more up front, for example on energy efficient or renewable energy technology, resulting in a net decrease in operational costs over time.

Just like natural capital accounting, TCO work is difficult, not quite standardized at the level of most carbon emissions calculators, and underutilized. We hope to see more firms take up both practices, further integrating the bottom line dollar with the bottom line for the environment.

 

3 Ways to Engage Suppliers on Sustainability

The SSC Team November 15, 2016 Tags: , , Strategic Sustainability Consulting No comments

We would like to get more involved in including sustainability initiatives during our procurement process and the selection of supplier process.  We want to work with our procurement team on this. What are some of the methods other organizations and companies have used in engaging with suppliers with their sustainability initiatives?

-- Barry Enix | Buckman

 

 

The question above was posed on the 2Degrees platform for sustainability professionals. It's a great question, and one that we frequently tackle in our work with clients seeking to push sustainability beyond their direct operational boundaries.

Here's what SSC President Jennifer Woofter said:

I find that effective supplier engagement needs three components: a policy element, a program element, and performance element.

The policy element is intended to explain the expectations that you have for suppliers in the area of sustainability. A supplier code of conduct, for example, will outline which sustainability issues (labor, environment, human rights, grievance processes, health and safety, etc.) you expect suppliers to address and comply with. Inserting similar requirements into supplier contracts, RFP/RFQs, etc. will ensure that the policy has "teeth" and can be used in contract decisions.

Supply chain programs including training and capacity building -- for both the suppliers themselves, but also for your procurement staff. Do purchasing managers know what to look for in a "sustainable" supplier? Are sustainability aspects incorporated into new vendor evaluations? What kind of auditing, self-assessments, corrective actions, and negotiation tools are available on each side? Robust programs will ensure that your policy isn't just a document on a wall somewhere, but is an active expectation lived out in day-to-day decision-making.

The final component is effective performance measurement. Sustainability professionals like to say "what gets measured gets managed" and it's essential that any supplier engagement program have effective metrics. You might begin with simple measures like "how many suppliers responded to our survey" or "how many suppliers attended our sustainability training," but generally I advocate moving to more outcome-based metrics such as "how much did serious incidents decrease after suppliers participated in our safety training?" and "how many tons of carbon emissions were suppliers who engaged with us able to reduce (as compared to non-engaging supplier)?" These kind of indicators will give you a much better sense of how effective your engagement efforts are -- and give you insight into what new initiatives are most likely to give you the results you seek.

Want to see what other sustainability practitioners recommended? Read the entire discussion over at 2Degrees.

 

TED Talks: Leadership – 5 Ways to Lead in an Era of Constant Change

The SSC Team November 10, 2016 Tags: , , , Strategic Sustainability Consulting No comments

Everyone loves a good TED Talk. Here’s one of our favorites.

Organizational change expert Jim Hemerling outlines strategies for making change management a positive experience instead of a tumultuous one. He argues that a business in today's constantly-evolving world can be invigorating instead of exhausting. Watch this awesome TED talk where Hemerling outlines five strategies, centered around putting people first, for turning company reorganization into an empowering, energizing task for all.