Southwestern Pennsylvania Sustainable Business Compact Essentials V

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1 Southwestern Pennsylvania Sustainable Business Compact Essentials V What is the Southwestern Pennsylvania Sustainable Business Compact? The SWPA Sustainable Business Compact provides an opportunity for SWPA businesses to voluntarily engage in sustainability actions that simultaneously advance their organizational mission, the environment, and the social fabric of their communities. Business organizations that incorporate sustainable practices into their operations and commit to a regional sustainability orientation stand out as valuable contributors to SWPA s sustainable development and are more competitive and prosperous, as has been documented by several leading business studies. As more businesses apply sustainability in their operations and community responsibility, the cumulative benefits of sustainable practices produce a stronger SWPA region poised to thrive and continue its legacy of innovation. Why have a Compact? A Compact offers a common set of conventions, based upon market-selected practices and peerreviewed expert knowledge, which reflect the evolving market for sustainable business activity in the SWPA regional market. A business enjoys triple bottom line benefits by focusing on the sustainability of its operations, on its products and services, and on the sustainability of the people and resources in the surrounding community. The sustainability of a business comes about through the development of organizational capacities that align with goals and achieve performance for the organization, the community of which it is a part, and the environment that supports both. Business capacities for continuous improvement provide the ability of the business to perform and adapt to dynamic changes in the marketplace as well as contribute to positive trends for enhancing and supporting the community and environment, in both the short term and long term. These capacities mean better financial outcomes, greater efficiencies, higher performance, and new opportunities. They also contribute to creating a business environment in communities that employees find desirable. What is involved with joining the Compact at the Challenger, Leader, or Champion level of achievement/recognition? At increasing levels of sustainable performance, the Compact involves: 1. Self-assessing a company s operational performance according to the levels of sustainability practices reviewed in the form of the Compact checklist that follows. 2. Providing substantiation to support self-assessment (partially at Leader level and fully at Champion level). 3. Identifying the sustainability issues most important to the business (and its industry type) with assessment of how the company compares to sustainability leaders in its field and plans to either remain a leader or become so. This requirement is only for the highest (Champion) category of achievement) Visit C4SPgh.org/Compact.html for more information 1

2 SWPA Sustainable Business Compact Levels of Achievement 1 Challenger 2 Leader 3 Champion Increasing Performance in Sustainable Business Practices Some Sustainability Goals Some Sustainability Performance Measures Some Sustainability Expertise Some Operational Practices Long + Short Term Foci Sustainability Goals.Sustainability Measurement / Evaluation Sustainability Policies Sustainability Operational Practices Growing Sustainability Expertise/Recognition Increasing Transparency Sustainability Extensive Throughout Practice.Sustainability Part of Strategy and Culture Extensive Sustainability Expertise/Recognition Regional Sustainability Goals Full Transparency Focus on highest impacts of firm Businesses that complete the assessment (and qualify for one of the three levels) will be publically recognized as a participant of the SWPA Sustainable Business Compact reflecting their level of performance and may use the designation in their own reporting and communications. Levels of Recognition The Compact provides recognition at three achievement levels, creating a pathway for organizations to grow, build, and demonstrate their commitments and practices: 1. Challenger: The business possesses foundational capacities that support its own operational sustainability, leading to long-term success as well as short-term performance. Business goals may reflect some commitment to developing sustainable performance criteria. The business is in the process of assembling sustainability-related expertise. Some knowledge relating to sustainable performance has been accessed and is being put into practice. The business is on the path to sustainability, deserving of increasing recognition commensurate with its progress. 2. Leader: The business has clear goals relating to sustainable performance and is in the process of evaluating them through its practices. Visit C4SPgh.org/Compact.html for more information 2

3 The business has built knowledge, created policies, deployed staff, and explored alternative methods for achieving those sustainable goals. The business has increasing confidence that sustainability is contributing to enhancing its operational performance, with both short-term and long-term horizons. The business's rising stature as an emerging sustainability pacesetter in its industry brings with it expectations for a level of transparency in the name of both verification of performance and leadership, showing the way for others in the field. For this reason, at least 50 percent of the information about the business s affirmatively indicated sustainability achievements per the Compact essentials is publically shared via the Compact website. This information is to be in the form of a link to relevant supporting/validation materials found on the business s website or in the form of a document that the company posts on its website to which the Compact website can link. 3. Champion: The business has well-established, consistent, and evaluated sustainability-oriented operational goals, practices, and performance criteria throughout the enterprise and as a steward in the regional community. Sustainability has become part of the business s culture. The business demonstrates its role as a leader in its industry from the sustainability discipline, has gained extensive recognition as such, and has a process for maintaining and improving upon its leadership role. The self-assessment portion of the Compact essentials is shared (on the Compact website) as example for others to strive to emulate. All of the responses from the business for the Compact essentials are publically shared via the Compact website. For at least 80 percent of the affirmative responses, substantiation is provided in the form of a link to relevant supporting/validation materials found on the businesses' website or in the form of a document that the company posts on its website to which the Compact website can link. The business, as part of its Compact submittal, has identified the sustainability aspects most important to its core business activities and its impact on the larger community with indication provided for how the company compares to sustainability leaders in its field of business/industry type. The company has also provided insight as to how the company is either an established sustainability leader or where it otherwise stands on the path to becoming so. The company provides its plan and structure for how it will become an established sustainability leader. This self-review will be shared on the Compact website. It is anticipated that in year four of the self-assessment at the Champion level, a Compact Review Panel of peers will review, assess, and validate (as deemed appropriate) continuing Champion status. Sustainable Essentials and Corresponding Compact Points There are 12 categories of sustainable essentials in areas such as energy efficiency, economic prosperity, and equity, among others. There are 3 levels of essentials across all 12 categories: baseline, engaged, and transformative. The levels reflect the amount of relative effort a business needs to invest in order to integrate that essential in their operations. Point levels are associated with each element in line with its level. -level essentials are worth 1 point. -level essentials are worth 2 points. -level elements are worth 3 points. There are a total of 49 baseline-level essentials, 164 engaged-level essentials, and 117 transformative-level essentials, with a total of 330 essentials. Visit C4SPgh.org/Compact.html for more information 3

4 To be considered a Challenger, the business must complete half of all of the essentials at the baseline level and achieve a minimum score of 25 Essential Points (EP s). To be considered a Leader, the business must complete all of the baseline essentials and complete half of all of the essentials at the engaged level, and achieve a minimum score of 131 Essential Points (EP s). To be considered a Champion, the business must complete all of the baseline and engaged essentials and complete half of all of the essentials at the transformative level, and achieve a minimum score of 272 Essential Points (EP s). Technical note: It is possible for a business to count an essential from a higher level category (e.g., engaged level) in place of an action at a lower level (e.g., baseline level); such a substitution, however, will earn essential points at the equivalent of the lower level for which the substitution is taking place. How were the Compact s essentials criteria created and selected? Sustainable Pittsburgh created the Compact through a year-long process that involved: 1. Benchmarking sustainable business rating systems, such as the Global Reporting Initiative (GRI) as well as corporate social responsibility (CSR) reports and programs that are common throughout the marketplace. 2. Translating benchmarked practices into sustainability essentials (such as air quality, energy usage, water conservation, sustainable materials management, etc ) and performance metrics. 3. Vetting these essentials through a peer-review process involving regional sustainability managers and other leaders in regional sustainability practice for how meaningful these essentials would be to SWPA s sustainability performance. 4. Aligning the vetted essentials into categories reflecting their contribution to baseline, engaged, and transformative levels of sustainable business practices. 5. The resulting set of essentials reflects meaningful and measurable sustainable business practices. It is the presence of these indicators, across all of the categories, with their interlocking reinforcement of corporate systems, management practices, leadership and employee activities, that create emergent, adaptive, and resilient capacities present in a sustainable business. How is information about the Compact shared? Businesses that are recognized as Challenger certified participants in the SWPA Sustainable Business Compact will be publically acknowledged as meeting the requirements of participation. Company information used in completing the Compact for Challenger level certification will be held as confidential and not be shared publically or otherwise. Only the list of the entire Compact essentials will be made public. For the Leader level, at least 50 percent of the Compact essentials that the business has claimed to achieve in the affirmative will be disclosed to the public, with appropriate documentation as described in the Levels of Recognition section. In addition, the list full of businesses that are recognized as Leader certified participants in the SWPA Sustainable Business Compact will be made public. For the Champion level, as described in the Levels of Recognition section above, all responses to the Compact essentials will be disclosed, with appropriate documentation. The business s selfassessment of its core business sustainability aspects within their industry will be shared publically. Visit C4SPgh.org/Compact.html for more information 4

5 Also, it in anticipated that in year four of achieving Champion status, the business will undergo a review process to validate its Compact top status and recognition. Renewal All participants must renew their certification at any time during a period up to 15 months from the date of the latest certification. Participants may apply for higher levels of certification at any time. 1. Diversity, Equity & Inclusion 1.b1. The business has a written policy prohibiting discrimination and valuing diversity. 1.b2. The business has commitment/support from leadership to creating a diverse and inclusive workplace. 1.b3. The business has a policy that enforces a respectful and inclusive workplace environment and a process for ensuring that this policy is enacted. 1.b4. The business provides professional development for all employees, with development and advancement opportunities open to everyone in the organization. 1.b5. The business has an action plan that encourages conducting business with minority and/or women-owned businesses. 1.b6. The business has a written plan and goal statement for incorporating diversity, equity and inclusion. 1.b7. The business has a commitment to participating in a wide range of community events that reflect diverse participation. 1.e1. The business has an established committee/group promoting diversity, equity and inclusion. 1.e2. The business offers mentoring and/or a diversity training program to all employees. 1.e3. The business has identified and implemented benchmarks/metrics related to diversity, inclusion and equity goals. 1.e4. The business has established an inclusive marketing plan, which includes an inclusive community outreach plan and inclusive marketing materials. 1.e5. The business has a strong, written employee recruitment plan, which includes a comprehensive outreach strategy to attract diverse talent. 1.e6. The business has a strong, written employee retention plan, which is linked closely with the recruitment plan and includes a strategy to retain diverse talent. 1.t1 The business works closely with human resources to provide comprehensive, inclusive benefits packages to encourage diversity and equity, such as leave benefits, domestic partner benefits, dependent care benefits, and flexible work hours. 1.t2. The business promotes diversity, strives for equitable successes, and supports inclusion in the region s economy. Visit C4SPgh.org/Compact.html for more information 5

6 1.t3. The business has received regional recognition for its efforts relating to diversity, equity, and inclusion in the regional economy. 1.t4. The business has achieved gender and racial diversity (at least) in both management and its entire workforce. 2. Energy Efficiency & Conservation 2.b1. The business reviews and tracks its monthly energy usage. 2.b2. The business maintains accessible energy utility records of its past energy usage and uses them to compare its energy performance over time. 2.b3. The business has a plan for conserving energy. 2.b4. The business has trained employees to conserve energy, e.g., turning off lights and equipment when it is not being used. 2.b5 The business has distributed energy savings tips to its employees for use at work and at home. 2.b6. The business has conducted a third party or an in-house energy audit of its major SWPA buildings and facilities. 2.e1. The business has implemented recommendations from completed energy audits. 2.e2. The business uses Portfolio Manager or other standard method for benchmarking energy performance of its buildings. 2.e3. The business budgets funds for investing in needed upgrades in equipment or facilities for energy efficiency. 2.e4. The business includes energy efficiency and conservation reporting and discussions as part of regular staff meetings. 2.e5. The business maintains records on its major energy using equipment, including its age, condition and nameplate data. 2.e6. The business has achieved an energy star rating in its portfolio of buildings and facilities in SWPA. 2.e7. The business has a policy to purchase energy star rated equipment when an available option. 2.e8. The business purchases renewable energy certificates or contracts for emissions-free energy for at least 50 percent of its electricity. 2.e9. The business has calculated its carbon footprint, including at least scope 1 and scope 2 emissions. 2.t1. The business takes actions to promote energy conservation along its supply chain. Visit C4SPgh.org/Compact.html for more information 6

7 2.t2. The business has installed renewable energy equipment. 2.t3. The business purchases carbon offsets for transportation and other carbon emissions for at least 50 percent of its non-electricity-based carbon emissions. 2.t4. The business supports the adoption of energy efficiency practices and the promotion of resource conservation as a regional priority. 2.t5. The business participates actively in the Pittsburgh Green Workplace Challenge. 2.t6. The business has received regional recognition for its energy efficiency and conservation practices. 3. Sustainable Materials Management 3.b1. The business tracks how much it spends on the disposal and recycling of its waste materials. 3.b2. The business encourages its employees to participate in waste reduction and recycling activities both at home and at work. 3.b3. The business has a written waste reduction, re-use, recycling policy for its facilities. 3.e1. The business has conducted a waste audit of its waste stream and knows its current waste generation rates. 3.e2. The business pursues waste reduction strategies built upon a waste audit. 3.e3. The business has performed one or more life cycle assessments of products and services and taken actions to improve the environmental footprint of those products and services. 3.e4. The business has an environmentally preferable purchasing policy for its facilities and operations to reduce waste. 3.e5. The business trains its employees in its waste reduction, reuse and recycling policies/operations. 3.e6. The business buys recycled products through its supply chain. 3.e7. The business diverts organic waste for productive use. 3.e8. The business recycles its e-waste through a Basel Action Network e-stewards Recycler or other certified electronic waste handler. 3.t1. The business reduces waste along its supply chain. 3.t2. The business supports, promotes, and participates in the implementation of regional waste reduction, re-use, and recycling policies, programs and efforts. 3.t3. The business has received regional recognition for its waste reduction, re-use, and recycling practices. Visit C4SPgh.org/Compact.html for more information 7

8 4. Smart Growth, Sustainable Communities, and Green Buildings 4.b1. The business avoids placing new production sites near environmentally sensitive or protected areas and/or uses precautionary principle, highest level of safeguarded operational techniques for operating near such environments. 4.b2. The business practices and/or contributes to historic preservation programs in the region. 4.b3. The business has chosen to occupy existing space rather than new construction for a majority of its facilities. 4.b4. The business chooses green building design solutions, such as green roofs, sustainable landscapes, and storm water management strategies for the modernization or renovation of facilities. 4.b5. The business has adopted LEED-based guidelines for new building standards. 4.e1. The business has constructed or resides in a SWPA LEED certified building, space, or neighborhood. 4.e2. The business has rehabilitated an existing space or structure using LEED-EB guidelines or equivalent. 4.e3. The business has transformed and occupies a formerly blighted or abandoned property. 4.e4. The business occupies a historic or civically significant space. 4.e5. The business examines the neighborhood walk score, transportation score, and the housing and transit affordability index in its decisions about where to locate its facilities. 4.e6. The business uses traditional neighborhood development (TND) plans and contextually sensitive design for its facility construction and location. 4.e7. The business is active in regional planning initiatives. 4.e8. The business promotes biodiversity on its grounds and facilities as is applicable. 4.e9. The business has implemented a biodiversity or wildlife preservation program on their regional sites as is applicable. 4.e10. The business has rehabilitated a SWPA brownfield and/or located its facilities on a former SWPA brownfield. 4.e11. The business conserves the natural resources (habitats, water, minerals, trees, for example) on its properties, sites, and facilities. 4.e12. The business has created a conservation easement to protect its properties that provide habitat support and/or that contain significant natural areas. 4.e13. The business offers an employer assisted housing program to its employees. 4.t1. The business resides in a facility with a green roof. Visit C4SPgh.org/Compact.html for more information 8

9 4.t2. The business supports the adoption of smart growth strategies for SWPA s sustainable development. 4.t3. The business promotes to the community a LEED-based approach to building design, responsible construction methods, and the renovation of existing structures. 4.t4. The business has received regional recognition for its adoption and promotion of smart growth, sustainable community, and green building practices. 4.t5. The business supports initiatives to ensure our region s residents have access to quality and affordable housing. 4.t6. The business has received regional recognition for its initiatives to ensure our region s residents have access to quality and affordable housing. 4.t7. The business has received regional recognition for its regional conservation activities. 5. Workforce Development 5.b1. The business engages with programs that connect the region s employers with highly skilled students and educators. 5.b2. The business engages in outreach to university students for future employment opportunities. 5.b3. The business has a program for employee professional development, training, and education. 5.e1. The business sponsors workforce training for low-income and inner-city residents. 5.e2. The business creates green job opportunities. 5.e3. The business offers sustainability training programs to its workforce. 5.e4. The business offers flexible schedules, work from home programs, and other arrangements to employees to support work-life balance and employee professional development. 5.t1. The business supports regional efforts to increase participation in workforce opportunity trends, career opportunities and the education of the present and future workforce. 5.t2. The business has received regional recognition for its commitment to increase participation in workforce opportunity trends, career opportunities and the education of the present and future workforce. 6. Economic Prosperity 6.b1. The business has strong, sustained economic performance. 6.b2. The business pursues and documents long-term financial sustainability in addition to shortterm quarterly performance. Visit C4SPgh.org/Compact.html for more information 9

10 6.b3. The business has met its regional tax obligations. 6.e1. The business makes capital investments in its regional operations and facilities. 6.e2. The business invests in research and development activities in the region. 6.e3. The business has expanded its regional employment within the last 5 years. 6.e4. The business offers living wages while maintaining its competitive positions. 6.e5. The business invests in green technology implementation. 6.e6. The business sources its materials and supplies from regional sources as the regional market can provide economically. 6.e7. The business obtains its food supplies from regional farms and sources as the regional market can provide economically. 6.t1. The business participates significantly in regional philanthropic activities. 6.t2. The business supports regional efforts that drive regional profit and prosperity from sustainable resource deployment and use. 6.t3. The business has received regional recognition for its commitment to regional profit and prosperity from sustainable resource deployment and use. 7. Water Quality & Stewardship 7.b1. The business reviews and tracks its monthly water usage. 7.b2. The business maintains accessible water utility records of its past water usage and uses them to compare its water usage performance over time. 7.b3. The business has a written policy and plan for conserving water. 7.b4. The business has trained employees to turn off water use and water-using equipment when it is not being used. 7.b5. The business has distributed water conservation tips to its employees. 7.e1. The business updates and maintains system facilities and infrastructure to minimize water consumption and maximize efficiency. 7.e2. The business has installed low-flow faucets, toilets, and other water flow control equipment. 7.e3. The business is aware of how its facilities handle storm water. Visit C4SPgh.org/Compact.html for more information 10

11 7.e4. The business minimizes storm water runoff through the installation of green infrastructure, such as green roofs, rain gardens, bio swales, below grade garden beds in parking lots, rain barrels, among other storm water mitigation strategies as is site applicable. 7.e5. The business does not send its storm water into sewers that combine with septic sewer systems. 7.e6. The business goes beyond compliance for conserving and protecting regional water resources. 7.e7. The business supports the adoption of water use reduction, improvements in water quality, and responsible water disposal practices, to maintain the region s healthy water resources. 7.t1. The business supports community organizations that are working to mitigate the region s combined sewer overflow and storm water runoff challenges. 7.t2. The business has hosted and/or conducted outreach programs to educate the community about water conservation and quality, such as combined sewer overflow and storm water runoff challenges. 7.t3. The business has received regional recognition for its commitment to regional water conservation, to improving the region s water quality, and for addressing combined sewer overflow and storm water runoff challenges. 8. Transportation 8.b1. The business seeks to locate facilities in a centralized corridor that complements sustainable forms of transportation. 8.b2. The business encourages its employees to walk, bicycle, take public transit, and ride-share for their commute and for work-related activities. 8.b3. The business offers incentives, such as pre-tax deductions, for employees that commute to work using public transportation, ride sharing, walking, and/or bicycling. 8.e1. The business commits to reduce the global transportation impact of its products and services. 8.e2. The business uses alternative energy vehicles to support on-site operations as applicable. 8.e3. The business encourages telecommuting or ride sharing for employees related to business travel. 8.e4. The business schedules conferences and meetings in a manner that minimizes transportation requirements. 8.e5. The business encourages the use of teleconferences to reduce travel for meetings. 8.t1. The business advocates to the community in support of public transit and other sustainable forms of transportation, such as carpooling, bicycling, and walking to improve mobility throughout the region. Visit C4SPgh.org/Compact.html for more information 11

12 8.t2. The business has received regional recognition for its support of public transit and other sustainable forms of transportation, such as carpooling, bicycling, and walking to improve mobility throughout the region. 9. Citizen Civic Engagement 9.b1. The business has an employee volunteer policy to encourage and support volunteerism. 9.b2. The business encourages employees to be active in their local communities. 9.b3. The business encourages its employees to run for local office in their local communities. 9.e1. The business donates to charitable foundations and/or businesses within the region. 9.e2. The business engages with stakeholder groups to consult community interests and needs. 9.e3. The business participates in local community development efforts. 9.e4. The business supports local groups who create and operate community gardens, farmers markets, parks, and trails in its community. 9.t1. The business supports civic engagement and community participation in civic decision making. 9.t2. The business has received regional recognition for its support of civic engagement activities and community participation in civic decision making. 10. Health & Wellness 10.b1. The business offers a health insurance program to employees. 10.b2. The business provides access to wellness programs, such as weight loss, exercise, stress reduction, and/or smoking cessation programs for employees. 10.b3. The business provides a safe work place for all employees. 10.e1. The business engages with regional outdoor recreational organizations to encourage its employees and their families to participate in outdoor recreational activities. 10.e2. The business has developed and implemented a health and wellness program. 10.e3. The business has a health and wellness committee that reviews the health and wellness program, surveys employees for its interests in the program, revises its goals, and engages in activities to promote health and wellness throughout the company. 10.e4. The business measures its progress on achieving its health and wellness goals. 10.e5. Management takes an active role in designing, reviewing, and promoting the health and wellness program in support of the health and wellness committee. Visit C4SPgh.org/Compact.html for more information 12

13 10.e6. Management has communicated with all employees in support of the health and wellness program. 10.t1. The business supports initiatives that promote the health and wellness of the region s communities. 10.t2. The business has received regional recognition for its initiatives that promote the health and wellness of the region s communities. 11. Air Quality Improvements 11.b1. The business promotes programs to employees to reduce emissions of criteria and toxic air pollutants to the environment. 11.b2. The business monitors indoor air quality and promotes programs to improve it. 11.b3. The business has an emissions policy. 11.e1. The business has a purchasing policy that reduces harmful air pollutants from its use of products. 11.e2. The business uses non-toxic and/or green chemistry materials for manufacturing processes, facilities, and/or office spaces. 11.e3. The business has reduced its emissions harmful to human health beyond compliance levels. 11.e4. The business has installed proper anti-idling signage and has trained suppliers and employees on minimizing the idling of vehicles. 11.e5. The business requires that construction and demolition activities are performed using clean construction equipment. 11.t1. The business supports air quality improvement plans and policies to reduce harmful air pollutants to improve the region s poor air quality ranking and the region s health. 11.t2. The business has received regional recognition for its air quality improvement plans and policies to reduce harmful air pollutants to improve the region s poor air quality ranking and the region s health. 12. Governance and Management 12.b1. The business has an ethics policy. 12.b2. The business has a conflict of interest policy. 12.b3. The business supports its employees engagement with professional societies. 12.b4. The business s employees follow professional codes of conduct and practice. Visit C4SPgh.org/Compact.html for more information 13

14 12.b5. The business provides information about environmental incidents/accidents through public reporting. 12.e1. The business has a corporate social responsibility (CSR) program. 12.e2. The business issues a corporate social responsibility (CSR) report or integrates it into its annual report or other comparable publications. 12.e3. The business assesses management s performance with respect to sustainability goals. 12.e4. The business has appointed a sustainability manager/coordinator/officer/ or corporate sustainability committee. 12.e5. The business participates in the Carbon Disclosure Project. 12.e6. The business performs sustainability audits of its operations and facilities. 12.e7. Management has sustainability training. 12.e8. The business participates in regional sustainability professional development groups, conferences, and university courses or projects. 12.t1. The business maintains a dashboard of an extensive set of sustainability measures that are continuously tracked and publically disclosed periodically. 12.t2. The business shows leadership in corporate sustainability at regional sustainability professional development groups, conferences, and university project by presenting its sustainability-related challenges, success stories and projects. 12.t3. The business has received regional recognition for its governance and management activities relating to sustainability. Visit C4SPgh.org/Compact.html for more information 14

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