Launching Sustainability Programs Bruce Starcher
Many Points of View Corporate Social ResponsibilitySocial Responsibility Corporate Sustainability Corporate Citizenship Sustainability Sustainable Responsible Business Corporate Conscience Responsible Business Corporate ResponsibilitySustainable Development Environmental Social Public Spirit Environmental, Health and Safety
Sustainability: how it all startsBig Bang Shareholder activism Board / CEO mandate NGO action Greening the desert Bottoms up Employee Passion Maverick
The Sustainability Program INTEGRATED Sustainability MANAGEMENT SYSTEM HOW WE DO THINGS BUNDLE OF PROJECTS ALIGNMENT PROJECTS ROADBLOCKS STAKEHOLDER ANALYSIS PROJECT BUSINESS CASE COALITION BUILDING SPONSORSHIP UNDER THE RADAR Big BangGreening the desert EUPHORIA End Years Scale Business Case
Program Success Factors Evolve the plan , track Leader who can articulate and sell the vision Business Case assumptions and manage them as the plan evolvesLeadership Team builder who can build bridges across Customer Understanding Yes! organizations Explicit values and operating principles Develop a clear strategy; evolve it Knowledgeable of Sustainability Strategy as the market and your understanding changesTeam Mix of experiences Report to someone who has direct Dedicated resources Structure access to the CEO Strong, committed sponsorsSponsorship Hire outside experts to fill in knowledge gaps Success Have a clear observable goal Changing sponsors is a major red flag Use a stage gate process, start small and add Companies are in business to Yet never forget … resources only as needed. make a profit!Funding Keep it as small as possible for as long as possible Have clear proof points to justify continuedControls funding
Sustainability Value Drivers A number of studies have been conducted to demonstrate the link between Sustainability programs and improved financial performance, as measured by stock price.= Market Capitalization Access to markets Win bids•Revenue Increased competitive position Increased loyalty Retain business Less material•Cost Increased efficiencies Less waste Lower energy use Consumer perception•Brand Increased brand equity Emotional connection Increased productivity•Employees Increased employee engagement Retention Hiring Access to SRI funds•Financing Lower cost of capital Pass financial institution filter Supplier risk Product risk Facility risk•Risk Lower risk Regulatory risk Competitive risk Reputational risk
Sustainability Landscape Economic Environmental Social GovernanceFinancial Performance Supply Chain Responsibility Employees Metrics and MeasurementEconomic Benefit Manufacturing Agreements, Diversity and Inclusion, Balancing Change Management Supplier Code of Conduct, Supplier work-Life, People Development and Sustainability Assessments Audits, Supplier SRE Training, Advancement, Employee and Global Sustainability Program Transparency, NGO Collaboration, Citizenship, Employee Engagement, Management Verification and Assurance Compensation and Benefits, Minimal Waste Promoting Wellness, Health and Reuse, Recycle, Repair, Rethink, Safety. Recover, Compost, Producer Human Rights Responsibility Open door policies, Diversity Environmental Sustainability Policies, Human Rights and Labor Marketing Communications, Policies, Standards of Business Operations, Manufacturing, Conduct. Logistics, Product Use, EH&S, Supply Chain Responsibility Resource Efficiency Sustainable Sourcing, Supplier Social Climate and Energy Responsibility, NGO Collaboration, Scope 1, Scope 2, Scope 3 Transparency, Supplier Diversity Sustainable Design Community Compliance, Design for the Employee Volunteerism, Corporate Environment, Lifecycle Analysis Philanthropy, Community (LCA), Accessibility, Zero Waste Engagement, Economic Impact System Privacy
How to look at Sustainability ResponsiblePeople Climate & Energy Minimal Waste Purpose Governance ProductCommunities Product Carbon Management Waste to Landfill Ethics Metrics & Measurement• Employee Volunteering • Legal • Scope 1 • Sustainability Metrics• Community • Safe • Scope 2 • Sustainability Engagement • Environmental • Scope 3 Measurement• Corporate Philanthropy • Sustainable• Economic Impact • Ethical SustainabilityEmployees Process Waste to Water Values driven leadership Assessments• Diversity & Inclusion • Environmental • Sustainability Self-Audit• Employee Engagement Marketing Strategy • SCORE assessment• Health Safety & • Product Material Audit Wellness • Supplier Management• Human Rights • Design for Environment• Total Rewards • Lifecycle Analysis• People Development• Work Life ProgramsSupply Chain Waste to Air Change Management• Integrate Sustainability • Communications in Sourcing • Training• Supplier Social and Environmental Responsibility• Transparency• Supplier Diversity Sustainability Program Management
Sustainability Maturity Defensive Compliance Managerial Strategic Cooperative Pre-2006 2006 - 2010 2011 - 2015 2015 - 2018 2018+Employee Engagement None I’m aware of the message I understand the message I believe I am committed to act Adopt a policy-based Embed the societal issue Connecting externally with Deny practices, outcomes or Integrate the societal issue Focus compliance approach as into core management organizations to drive responsibilities into core business processes a cost of doing business processes broader change One or two projects Activities No Action Green-wash Bundle of Projects Management System Full Integration No strategy Leadership and Management Processes, Strategy, Financing, Embedded No No Business Processes Strategy, Employee Reputation, Brand Engagement To mitigate the erosion of economic value in the To enhance economic value To enhance long term To defend against attacks to To mitigate the erosion medium term and to in the long term and to gain economic value by their reputation that in the short of economic value in the achieve longer-term gains first mover advantage by overcoming any first mover The “why” term could affect sales, medium term because of buy integrating aligning strategy and process disadvantages and to realize recruitment, productivity, and ongoing reputation and responsible business innovations with the societal gains through collective the brand. litigation risks practices into their daily issue action. operations. Source: Simon Zadek, “The Path to Corporate Responsibility”
Sustainability Evolution Defensive Compliance Managerial Strategic Cooperative Pre-2006 2006 - 2010 2011 – 2015 2015 - 2018 2018+Responsible Product - Packaging - Green Product Portfolio - Full understanding of all - Continuation and extension of - Non compliant - Sustainable Packaging product inputs, components, strategic work. Industry leadership chemicals - Responsible Supply Chain processes and their impacts. in all product categories re: - Supplier - Lifecycle Analysis - Detailed plan(s) in place to methods, R&D, manufacturing, Sustainability - PVC substitution reduce or eliminate impacts, to sourcing. Compliance - Ongoing Product Material Compliance become resource "neutral" via - Mentorship and strategic - Green Products upcycling, alliances to create alliances outside of industry to industrial nutrients (i.e. waste= spread knowledge. food). Minimizing transport; packaging, etc.Climate and Energy - Carbon Management - Carbon Management - Deep understanding of the • Scope1 • Scope1 environmental impacts of ALL • Scope 2 • Scope 2 aspects of the enterprise by all • Scope 3 • Scope 3 employees AND all company activities analyzed and guided by this understanding. - Sharing of knowledge and active support of science and research institutions working in these areas.
Sustainability Evolution Defensive Compliance Managerial Strategic Cooperative Pre-2006 2006 - 2010 2011 – 2015 2015 - 2018 2018+Minimal Waste - General Office - Site Recycling - Process Redesign - Approaching or achieved Printing - General Office Printing - 100% take back packaging guaranty, including “Minimal waste" goal...and - Solid Waste Reduction agreements with suppliers re: packaging types, continuing to make adjustments to materials and transport strategy. perpetuate it. Incentive plan(s) to actively engage customers - Active participation in multi- in ACCOs zero waste initiative. industry coaltions re: zero waste strategies around the world.People - Purpose - Employee Engagement - Continuation and expansion of - Employee Engagement - Community Engagement strategic era plans. Employee - Diversity - Integrate Sustainability metrics in MIP and generated ideas have resulted in - Compensation and benefits MBO objectives spin-off businesses or - People development - Introduction of cash and non-cash (e.g. organizations that work with ACCO. - Work-Life programs awards/recognition, time off, etc.) incentives - Health, safety and wellness for employee ideas or projects. - Partnering with schools (elementary through university) to develop brand awareness AND environmental/social goals. - Partnering with non-profits and community based NGOs to provide products and raise awareness of company mission & goals.
Sustainability Evolution Defensive Compliance Managerial Strategic Cooperative Pre-2006 2006 - 2010 2011 – 2015 2015 - 2018 2018+Governance - Environmental - Align around a long term Sustainability - Develop Company level - Corporate Governance Business Case roadmap Sustainability strategy and - Access to SRI funding - Customer - Sustainability External Reporting integrate into corporate strategy - Management compensation includes Sustainability risk - Sustainability Communications - Integrate Sustainability in ACCO’s Sustainability component. profile and - Sustainability Training Culture. -External Networks, Working Groups, requirement - Establish Sustainability metrics, - Increased investment by SRI and External Collaboration - Sustainability measurement and reporting institutional investors as a result - All Board members have familiarity Baseline audit infrastructure of Sustainability accomplishments and /or expertise with Sustainability - Embed - Public goals and goals. goals and issues. Sustainability in key - Link values to behaviors and - Well established e-learning - Company and shareholders are processes performance appraisals systems and other completely and actively aligned with - Customer Request - Develop Company level Sustainability internal/cultural mechanisms regard to ACCOs Sustainability agenda process and strategy and integrate into corporate allow budget resources to be freed and goals. structure strategy up for other uses. - Company is leading by example and - Build external network among NGOs, supporting political and social policies leading Sustainability companies and that further environmental and social other key sustainability players practices and initiatives. - Compensation of all employees AND selection of all suppliers, contractors and vendors have mandatory Sustainability goal requirements.
A balanced approach to projectsIntangibleTangible Short Term Long Term
Broad Based Change – Greening the Desert• Identify gap• Create knowledge and build expertise• Share knowledge and expertise with trusted network• Get input and refine knowledge• Add value through application of knowledge and expertise• When confident, go outside trusted network and share capability and expertise• Build coalition, find sponsors and Mentor of Mavericks (MOMs)• Start lower in the organization, build support and gain access to more senior managers; keep moving up the organizational structure• Grow share of personal activity• Strive for the establishment of a permanent position
Sustainability has to be made tangible Customer ConsumerObjective To be among the industry leaders in Corporate Social Responsibility Strategy Cost and environmental impact reductions across products and processes Product Charac- Offering Packaging Category Specific Attributes teristics Post Sales Minimal Waste Minimal Material Waste Minimal Process Waste Reduce, Reuse, Rethink,… Climate and Energy Carbon Management “ACCO products and solutions offer People Responsible Supply Chain best in class features and value fromOperations Brand Community a company committed to Employees sustainability” Governance Metrics and Measurement Change Management Sustainability Program Management SustainabilityFunctional Supply Communi- Investor Marketing Sales R&D Compliance Finance HRStrategies Chain cations Relations Governance
SummaryThe job of a Sustainability leader is to work towards eliminating the position, to get to the point where Sustainability becomes the way the company operates … … but there is a lot of work to be done from beginning until you might eventually get to that point …