Stages to Sustainability

Transcription

1 Stages to Sustainability The essential components for effectively evaluating an organization s sustainability performance - from the boardroom to the manufacturing floor By Mark Heaney Vice President, AlterEcho New York, New York You have to go back four decades to the beginnings of the Environmental Protection Agency, the first Earth Day and an American Indian shedding a lonely tear over littering to find a time when the public was so concerned about the plight of our environment. Many people, at home and at work, have quickly become conversant in green issues such as recycling and sustainability, and there is a growing understanding and acceptance of the concept of the footprint an individual or a business leaves on our society and our environment. This ever-growing awareness presents positive opportunities to address the economic, environmental and social challenges we face in preserving and protecting our environment in the 21 st century. Unlike 40 years ago, however, a significant part of environmental awareness and discussion today is coming from business. Look no further than the reusable shopping bag sold by WalMart, which proclaims: Paper or Plastic? Neither. Or look at General Electric s EcoMagination campaign, which boasts of the future of wind power. Or take note that the rental companies owned by Enterprise (Alamo, National and Enterprise) have helped their renters take 42,000 metric tons of carbon the equivalent of 98,000 barrels of oil out of the environment in just one year of a carbon offset purchase program. How important is today s environmental movement to the world of business? As noted venture capitalist and ardent environmentalist John Doerr said last year at a conference on business and the environment: "This is the largest economic opportunity of the 21st century. To compete effectively in an increasingly integrated world, organizations are recognizing the economic, environmental and social factors that impact and shape their business strategies. A key part of those strategies is how they address the concept of environmental sustainability. The United Nations Commission on Environment and Development defines sustainability as meet(ing) the needs of the present without compromising the ability of future generations to meet their own needs. Today s leaders need the tools to evaluate their organization s sustainability along a continuum of issues and to be prepared to more effectively manage risks and leverage their opportunities. With more than 25 years of experience in helping clients manage complex environmental issues and how they intersect with financial responsibility and social awareness, the

2 people of AlterEcho are uniquely positioned to help organizations confront the anticipated challenges of meshing sustainability and profitability. As demonstrated in AlterEcho s Stages to Sustainability which follows these twin concepts are not only able to co-exist, but they are complementary and can help a business grow. Stages to Sustainability shows that a business can indeed do well and do good. Where to Start on Sustainability Discusssions of how to go green and take steps such as implementing a sustainability program are likely popular at many businesses, but how does a company actually approach greening itself? AlterEcho s experience of helping clients develop and manage the skills, systems and support that are needed to make the operational improvements that not only drive bottom-line growth, but also enhance our environment, has helped us to identify critical elements for a successful sustainability program. We have found that a strong commitment to reducing and eliminating waste (not just solid waste, but also wasted energy and raw materials and resources, e.g.), protecting the environment and increasing operational efficiency, while also reducing total costs, is needed throughout the organization. A clear corporate vision on sustainability, coupled with specific, measurable goals that maximize value and provide focus and drive during the program development and implementation process are also critical. Sustainability entails managing resources and operations for maximum efficiency and effectiveness with minimal environmental impact. It is multi-disciplinary and can cut across many parts of an organization. Corporate sustainability provides a business approach to create long-term shareholder value by embracing opportunities and managing risks deriving from economic, environmental and social developments. Corporate sustainability leaders harness the market's potential for sustainability products and services while at the same time successfully reducing and avoiding sustainability costs and risks. 1 This sustainable approach to business can result in protecting the environment and future business resources, increasing operational efficiency, decreasing costs and,providing benefits that spread beyond initial process improvements. A successful sustainability program reflects a culture built upon: Environmental Performance Economic Benefit/Return on Investment Regulatory Management Social Responsibility While environmental impacts and management are core elements of sustainability, they are not the only focus. As indicated above, sustainability is an approach to business. Our team has found that the use of business tools such as benchmarking analysis and organizational development analysis are excellent starting points on the path to sustainability. 1 Dow Jones Sustainability North America Index. Dow Jones Sustainability United States Index Guide Book. Version 4.2, June 2009.

3 Stages to Sustainability Benchmarking analysis allows a business to take stock of its current performance and identify areas of strength or weakness to build or to improve upon. Performance is compared to criteria such as regulatory standards, industry/competitor practices, or professional certification standards such as ANSI or ISO. Our experience supporting environmental regulatory agencies such as the U.S. Environmental Protection Agency in environmental management, compliance and remediation oversight, and with private sector clients on environmental management systems (EMS), ISO certifications and business process re-engineering has given us the insight and experience to develop a proprietary sustainability benchmarking approach and tool. AlterEcho s sustainability tool utilizes our Stages of Sustainability benchmarking methodology, drawing from more than 20 years of private industry research on best practices and organizational behavior and development. This research has shown four fairly distinct levels of performance and development for organizations (or portions of organizations) as they evolve and succeed, or cease to grow and stagnate. These levels of performance, or stages, each offer specific characteristics with observable breakthrough points as an organization progresses or regresses from one stage to another. The four stages are typically identified as: 1. Reactive operating in a reactive, at risk manner, early stage of development 2. Controlling managing for compliance, some proactive planning and management occurring 3. Leader management systems well established, effective planning and risk management 4. World Class operations are integrated for business results and value across multiple functions. Exhibit 1 illustrates the Stages of Sustainability process. There are no specific criteria that move a company from one stage to another, but a combination of several actions and attitudes. As a company moves from one stage to another, it has been found that a change is apparent in the culture of the company. The breakthrough trigger points in moving from one stage to another represent achieving efficiency in operations, effectiveness in operations and creating value.

4 Exhibit 1 The Stages of Sustainability An organization s performance is gauged against specific benchmarking performance indicators to determine its current stage of performance. Understanding the performance characteristics of each stage also allows an organization to target the stage of performance it wishes to achieve. The benchmarking performance indicators reflect the topics being evaluated, such as supply chain management, EMS, or in this case, sustainability. The Stages of Sustainability approach is industry and service agnostic, having been successfully used for many private and public sector clients in a variety of industries and service areas. AlterEcho has developed Stages of Sustainability performance indicators for seven sustainability-focused modules for benchmarking analysis. The modules include the following areas: Management Commitment, Planning and Implementation Facilities Evaluation Office Greening Resource Management Waste Management Transportation Supply Chain

5 Client, industry and service specific modules will continue to be developed as needs dictate. Each module contains multiple components consisting of performance indicators that have been developed to reflect appropriate regulatory standards and current professional certification requirements (where applicable), as well as best practices. Table 1 below provides an overview and example considerations from four of the modules. Table 1- Stages of Sustainability Module Examples Module Overview Example Considerations Management Commitment, Planning and Implementation Facilities Evaluation Office Greening Waste Management senior management commitment, planning, implementation, and performance evaluation. energy efficiency, air quality, lighting, water use, and materials pertaining specifically to facility operations. This module looks at overall management, waste management, purchasing, energy and water use in an office setting. planning and purchasing, storage, maintenance, recycling and storm water management. Are you approaching sustainability with only shortterm measures? Are roles clear within the organizations? Are policies focused on creating a business advantage? What is your vision? How is information communicated? Are cost savings considered when making decisions? Do you have a waste management plan? Can your building be LEED certified? Are there any local tax incentives that can be taken advantage of? Have you done an energy audit? Do you have a sustainability policy for the office? Is data tracked and readily useable and available to decision makers? Do you have procedures in place to reduce paper use and disposal? Are there purchasing policies pertaining to green products? Is energy use minimization incorporated in your corporate culture? Do you have measureable objectives for pollution prevention? Have you conducted a waste stream audit? Have you identified the EPA priority pollutant chemicals used on site? Are all stakeholders involved in waste management? Are you selecting equipment to minimize wastes? Sound planning and integrated approaches to managing the environmental and economic resources of an organization are the cornerstones of successful sustainability efforts. Benchmarking an organization s performance utilizing an approach and tool such as the Stages of Sustainability can target opportunities and save time and money, while avoiding false starts. AlterEcho gives a company the ability to transform its culture from one that is efficient to one that creates value in all aspects of its operations. The coming decade will need to be a decade of action concerning the challenges society and businesses alike face. Increasing the efficiency and effectiveness of resource use and business operations to create a more sustainable model of operations will benefit an organization s bottom line and its long-term viability, while also yielding a positive impact for society as a whole.