Sustainability Management Improve Brand & Profitability via TBL & CSR Anand Subramaniam

“ The world will not move beyond its current state of crisis using the same thinking that got us there in the first place .” - Albert Einstein

“ The world will not move beyond its current state of crisis using the same thinking that got us there in the first place .”

- Albert Einstein

Highlights Sustainability Corporate Social Responsibility (CSR) Triple Bottom Line (TBL) Business Case for Sustainability Framework - Sustainability Management Roadmap - Planning for Sustainability HR’s Role in Building a Sustainable Enterprise Reference

Sustainability

Corporate Social Responsibility (CSR)

Triple Bottom Line (TBL)

Business Case for Sustainability

Framework - Sustainability Management

Roadmap - Planning for Sustainability

HR’s Role in Building a Sustainable Enterprise

Reference

Sustainability

Next Wave.. Value-driven and transformative Responsive to emerging shift in global values Making corporate citizenship and corporate sustainability core business strategies

Value-driven and transformative

Responsive to emerging shift in global values

Making corporate citizenship and corporate sustainability core business strategies

What is Sustainability? Put simply, it is - “ future-proofing your business ” The process to develop specific strategies and an action plan to help ensure the long-term sustainability of an initiative Considers a full range of resources and competencies – needed to meet long-term goals

Put simply, it is - “ future-proofing your business ”

The process to develop specific strategies and an action plan to help ensure the long-term sustainability of an initiative

Considers a full range of resources and competencies – needed to meet long-term goals

Why Sustainability ? Improve Productivity Reduce Absenteeism Improve Stakeholder Value Create Healthier Environments Improve Business Benefits Reduce Cost Reduce Risks

Key Aspects Focus simultaneously on the People, the Environment and Profits Balancing social, environmental and economic factors for short and long-term performance

Focus simultaneously on the People, the Environment and Profits

Balancing social, environmental and economic factors for short and long-term performance

Principles - Sustainable Performance Source: Improving Sustainability Performance - Epstein and Roy Ethics Environment Employment Value Community Profit Relationships Transparency Governance Sustainable Performance

Sustainable Enterprise - Qualities Is committed to transparency and accountability Long-term, collaborative, “holistic” or systems-oriented mindset Pursues a “triple bottom-line”– social, environmental and economic Ethics-based business principles and sound corporate governance practices considers rights and interests of all relevant stakeholders, not only the immediate interests of company shareholders Uses its influence to promote meaningful systemic change amongst its peers within its neighboring communities throughout its supply chain

Is committed to transparency and accountability

Long-term, collaborative, “holistic” or systems-oriented mindset

Pursues a “triple bottom-line”– social, environmental and economic

Ethics-based business principles and sound corporate governance practices

considers rights and interests of all relevant stakeholders, not only the immediate interests of company shareholders

Uses its influence to promote meaningful systemic change

amongst its peers

within its neighboring communities

throughout its supply chain

Corporate Social Responsibility (CSR)

Corporate Social Responsibility (CSR) Integrate social and environmental sustainability Rely on stakeholder dialogue / outside interest groups

Integrate social and environmental sustainability

Rely on stakeholder dialogue / outside interest groups

CSR - Benefits Reputation, brand, integrity and trust Transparency, effective risk management and public reporting = investor confidence Improved employee morale / pride = attracting talent Closer attention to the firm’s reputation and its intangible assets = competitive advantage Closer contact with the community = better business outcomes

CSR - Success Criteria Success Criteria Develop positive relations with all stakeholder groups Be transparent with results / outcomes in relevant areas Compelling Business Case Promote the triple bottom line within the firm Regular stakeholders communication Utilise a structured / methodical approach Create culture that fits with sustainability values Environmental Scan for programs and new ideas Inculcate a continuous improvement mentality Ensure high Stds. of workplace health and safety Facilitate / define firm’s motivation for CSR involvement Develop awareness & obtain top management commitment

Triple Bottom Line (TBL)

Mental Model Source - The Sustainability Advantage, Bob Willard. Typical Business View Sustainability View Society Envi-ron-ment Economy Environment Society Economy

Triple Bottom Line – Concept Environment Value Add Financial / Economic Value Add Social Value Add Procurement policies Employee compensation Community contributions Demand for products / services Other monetary issues related to company activities Processes, products or services that affect the environment Equality Employee issues Treatment of minorities Public opinions / concerns Shaping local, national and international public policy Tangible Value Intangible Value

Procurement policies

Employee compensation

Community contributions

Demand for products / services

Other monetary issues related to company activities

Processes, products or services that affect the environment

Equality

Employee issues

Treatment of minorities

Public opinions / concerns

Shaping local, national and international public policy

Intangible Value – Improved Brand / Image Intangible Value Tangible Stakeholders Supply chain Local communities Partnerships / alliances Regulators & policymakers Customer & labour relations Emerging Markets Human rights Oppressive regimes Economic development Products & Services Product safety Intellectual capital New product innovation Product Life Cycle Mngt Design for environment / use Governance Agility / adaptability International “best practice Strategic scanning capability Performance indicators / monitoring / reporting Human Resources Health & safety Employee motivation Recruitment / retention Knowledge capture & sharing Innovation capacity / capability

Stakeholders

Supply chain

Local communities

Partnerships / alliances

Regulators & policymakers

Customer & labour relations

Emerging Markets

Human rights

Oppressive regimes

Economic development

Products & Services

Product safety

Intellectual capital

New product innovation

Product Life Cycle Mngt

Design for environment / use

Governance

Agility / adaptability

International “best practice

Strategic scanning capability

Performance indicators / monitoring / reporting

Human Resources

Health & safety

Employee motivation

Recruitment / retention

Knowledge capture & sharing

Innovation capacity / capability

Triple Bottom Line (TBL) Disclosure (reporting) is a key part of doing sustainable business Sustainability reporting is broader in scope than traditional financial reporting The Triple Bottom Line (TBL) is one way to report on sustainable business activity

Disclosure (reporting) is a key part of doing sustainable business

Sustainability reporting is broader in scope than traditional financial reporting

The Triple Bottom Line (TBL) is one way to report on sustainable business activity

Increasing Trends Social Security Diversity Fair trade Equal rights Job Creations Transparency Business Ethics Labour Relations Better living standards Skill Enhancements Economic Speed & Flexibility Life-long learning Intellectual capital Shorter Product life-cycles Technological Change & Innovation Interdependent Economies Improvements in Margins, revenue, risk , Capital Efficiency, Shareholder Returns Environment Zero Waste Global Warming Safety & Health Population growth Resource Efficiency Pollution and waste Loss of bio-diversity Scarcity of Natural Resources Ecological risk awareness Life Cycle Management

Social

Security

Diversity

Fair trade

Equal rights

Job Creations

Transparency

Business Ethics

Labour Relations

Better living standards

Skill Enhancements

Economic

Speed & Flexibility

Life-long learning

Intellectual capital

Shorter Product life-cycles

Technological Change & Innovation

Interdependent Economies

Improvements in Margins, revenue, risk , Capital Efficiency, Shareholder Returns

Environment

Zero Waste

Global Warming

Safety & Health

Population growth

Resource Efficiency

Pollution and waste

Loss of bio-diversity

Scarcity of Natural Resources

Ecological risk awareness

Life Cycle Management

Business Case for Sustainability

Business Case Maximise Revenue Minimise Cost

Cost Minimisation Operational performance & efficiencies Process optimisation Improved relations with regulators Efficient use of resources; risk reduction Improved product quality and reduced error rates Minimising business risks and improving safety Establishing a comprehensive Corporate Responsibility (CR) policy and strategy can offset these risks, spanning legal, financial, environmental and societal risks Improved recruitment and retention of talented employees Improved employee morale and productivity via training and development Minimise Cost

Operational performance & efficiencies

Process optimisation

Improved relations with regulators

Efficient use of resources; risk reduction

Improved product quality and reduced error rates

Minimising business risks and improving safety

Establishing a comprehensive Corporate Responsibility (CR) policy and strategy can offset these risks, spanning legal, financial, environmental and societal risks

Improved recruitment and retention of talented employees

Improved employee morale and productivity via training and development

Revenue Maximisation Learning and innovation Improved understanding of consumer needs Identifies new markets and price premium opportunities New products through the application of new technologies Stakeholder engagement a catalyst for corporate innovation Improved customer loyalty Aligning corporate values and activities with stakeholder expectations Improved access to capital Enhanced credit worthiness and lower cost of capital due to investor confidence in the company’s ability to manage change Improved supply chain management Enhanced recognition and reputation (brand) Improved market share from enhanced ability to strategically plan for the longer-term First mover advantage by anticipating the impacts of social pressures/ trends Maximise Revenue

Learning and innovation

Improved understanding of consumer needs

Identifies new markets and price premium opportunities

New products through the application of new technologies

Stakeholder engagement a catalyst for corporate innovation

Improved customer loyalty

Aligning corporate values and activities with stakeholder expectations

Improved access to capital

Enhanced credit worthiness and lower cost of capital due to investor confidence in the company’s ability to manage change

Improved supply chain management

Enhanced recognition and reputation (brand)

Improved market share from enhanced ability to strategically plan for the longer-term

First mover advantage by anticipating the impacts of social pressures/ trends

Sustainability Management Framework

Framework - Sustainability Management Models Terminology Management Practices Scope / Structure Implement Conceptual Framework Evaluation Roles Scope Stakeholders Responsibilities Training Change Management Methodology / Roadmap Knowledge Portal / Forums Benchmarking Reporting / Results / Awards Expert Opinion / Consultation Rewards / Performance Evaluation Vision / Mission Business Case Benefits / Values Strategies / Plans Success Criteria Motivation / Priorities Capture Communicate Collaborate Continuously Improve Sustainability Management

Models

Terminology

Management Practices

Roles

Scope

Stakeholders

Responsibilities

Training

Change Management

Methodology / Roadmap

Knowledge Portal / Forums

Benchmarking

Reporting / Results / Awards

Expert Opinion / Consultation

Rewards / Performance Evaluation

Business Case

Benefits / Values

Strategies / Plans

Success Criteria

Motivation / Priorities

Roadmap - Planning for Sustainability

Reasons for Sustainability Planning To clarify where you are and where you want to go To develop strategies for long-term success To provide benchmarks to measure progress To demonstrate to stakeholders the value of your work

To clarify where you are and where you want to go

To develop strategies for long-term success

To provide benchmarks to measure progress

To demonstrate to stakeholders the value of your work

Roadmap – Planning for Sustainability Vision Success Criteria Strategic Resourcing / Funding Change Management Stakeholder Relationship Advocates / Champions Internal Process / Systems Sustainability Plan

Vision Clear and shared vision of what you want to achieve. Know what you want to sustain Know how your initiative fits with the long term goals Know what you mean by sustainability Scope of activities Scale of operation Timeline

Clear and shared vision of what you want to achieve.

Know what you want to sustain

Know how your initiative fits with the long term goals

Know what you mean by sustainability

Scope of activities

Scale of operation

Timeline

Success Criteria / Results Define success criteria, measure progress over time and share your results Adopt a results framework Be clear about the results you want to achieve as well as the systems that serve them Use indicators and performance measures to track progress and improve your work

Define success criteria, measure progress over time and share your results

Adopt a results framework

Be clear about the results you want to achieve as well as the systems that serve them

Use indicators and performance measures to track progress and improve your work

Strategic Resourcing / Funding Have a clear sense of the cost of your initiative and develop strategies to secure relevant resources Make the best use of existing resources Revenue maximisation of available sources Obtain required funding Create stakeholder partnerships Generate new sources of revenue

Have a clear sense of the cost of your initiative and develop strategies to secure relevant resources

Make the best use of existing resources

Revenue maximisation of available sources

Obtain required funding

Create stakeholder partnerships

Generate new sources of revenue

Change Management Pro-actively respond to changes in your environment Monitor funding opportunities Cater to stakeholder interests and their participation Identify opportunities to improve policies / procedures / systems Participate in collaborative advocacy to encourage change

Pro-actively respond to changes in your environment

Monitor funding opportunities

Cater to stakeholder interests and their participation

Identify opportunities to improve policies / procedures / systems

Participate in collaborative advocacy to encourage change

Stakeholder Relationship Determine support required and develop an engagement plan Encourage involvement of stakeholders Support via training and education Build partnerships that foster collaboration rather than competition

Determine support required and develop an engagement plan

Encourage involvement of stakeholders

Support via training and education

Build partnerships that foster collaboration rather than competition

Advocates / Champions Identify key decision makers and opinion leaders who will use their influence on your behalf Develop an effective outreach plan Cultivate a broad base of champions Business leaders Peers Clients Philanthropists

Identify key decision makers and opinion leaders who will use their influence on your behalf

Develop an effective outreach plan

Cultivate a broad base of champions

Business leaders

Peers

Clients

Philanthropists

Internal Process / Systems Internal process and systems to manage work effectively Develop strong governance, risk management, accounting, information, and human resource systems Use those systems to review strategies, make changes as needed

Internal process and systems to manage work effectively

Develop strong governance, risk management, accounting, information, and human resource systems

Use those systems to review strategies, make changes as needed

Sustainability Plan An implementation plan that describes the initiative’s - priorities & action steps Identify challenges, risks, constraints, assumptions and other initiatives Identify strategies to garner needed resources and overcome challenges Identify and communicate with key partners

An implementation plan that describes the initiative’s - priorities & action steps

Identify challenges, risks, constraints, assumptions and other initiatives

Identify strategies to garner needed resources and overcome challenges

Identify and communicate with key partners

HR’s Role in Building a Sustainable Enterprise

HR Agenda – Employee Sustainability Internal Change Management Attract & retain top talent Adopt a strategic perspective on workplace development including ecological sustainability Build the corporate knowledge and skill base (training) Increase employees’ role in decision-making Link sustainability goals to employee rewards, bonuses, and performance appraisal systems External Reinterpret strategy around a range of stakeholders Sustain on-going dialogue with stakeholders and been seen adding value Define social goals and action plans with KPIs Build stakeholder support to operate and grow. Form active partnerships with community groups to inform, critique and collaborate on sustainability initiatives Institute external monitoring, reduce environmental footprint

Internal

Change Management

Attract & retain top talent

Adopt a strategic perspective on workplace development including ecological sustainability

Build the corporate knowledge and skill base (training)

Increase employees’ role in decision-making

Link sustainability goals to employee rewards, bonuses, and performance appraisal systems

External

Reinterpret strategy around a range of stakeholders

Sustain on-going dialogue with stakeholders and been seen adding value

Define social goals and action plans with KPIs

Build stakeholder support to operate and grow.

Form active partnerships with community groups to inform, critique and collaborate on sustainability initiatives

Institute external monitoring, reduce environmental footprint

Reference

Resources Beyond the Boundaries: Leading and Recreating the Successful Enterprise by D. Stace & D. Dunphy Corporate Social Opportunity - 7 steps to make corporate social responsibility work for your business by D. Grayson and A. Hodges Cradle to Cradle by William McDonough & Michael Braungart Green to Gold by Daniel Esty & Andrew Winston Improving Sustainability Performance by Epstein and Roy Leading Change Toward Sustainability: A Change Management Guide for Business by B Doppelt Making Sustainability Work by Marc J. Epstein Product Design for the Environment by Fabio Giudice, Guido La Rosa, Antonino Risitano The Triple Bottom Line by Andrew Savitz The Business Guide to Sustainability by Darcy Hitchcock & Marsha Willard The Sustainability Advantage by Bob Willard

Beyond the Boundaries: Leading and Recreating the Successful Enterprise by D. Stace & D. Dunphy

Corporate Social Opportunity - 7 steps to make corporate social responsibility work for your business by D. Grayson and A. Hodges

Cradle to Cradle by William McDonough & Michael Braungart

Green to Gold by Daniel Esty & Andrew Winston

Improving Sustainability Performance by Epstein and Roy

Leading Change Toward Sustainability: A Change Management Guide for Business by B Doppelt

Making Sustainability Work by Marc J. Epstein

Product Design for the Environment by Fabio Giudice, Guido La Rosa, Antonino Risitano

The Triple Bottom Line by Andrew Savitz

The Business Guide to Sustainability by Darcy Hitchcock & Marsha Willard

The Sustainability Advantage by Bob Willard

“ The world has enough for everyone’s needs but not for everyone’s greed .” - Mahatma Gandhi

“ The world has enough for everyone’s needs but not for everyone’s greed .”

- Mahatma Gandhi

Good Luck http://www.linkedin.com/in/anandsubramaniam

Good Luck

http://www.linkedin.com/in/anandsubramaniam