ASSE - The Sustainability Professional, Taking EHS To The Next Level

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  • In a sense it is like the story of the blindfolded individuals who were asked to describe a massive object by touch. Each explored a different part, and each described quite accurately his or her own reality. The reality of what is going on in our professions is not defined by the personal experiences of a few, but the combined wisdom of many—collectively taking off the blindfold, so to speak.
  • ASSE - The Sustainability Professional, Taking EHS To The Next Level

    1. 1. The Sustainability Professional Become to Take EHS to the The Sustainability Professional Hector R Rodriguez, CIH, CSP Director, Global EHS & Sustainability Biogen Idec
    2. 2. <ul><li>And potential implications to the EHS professional </li></ul>Objectives of this Talk – An Overview of… What is Sustainability? What is Sustainability Management? Process to develop and implement a Sustainability Strategy
    3. 3. Challenges of this Definition Does not address resource consumption issues, nor the distinction between renewable resources and non-renewable resources. Does not really answer the question of what sustainability means and also leaves it to our imagination to determine which “needs” are legitimate and which ones are not. 2 Part I - What is Sustainability? Traditional Definition Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. 1 Philosophically, Sustainability could be thought of as the goal and Sustainable Development one of the requirements needed to achieve it… 1. “Our Common Future.” World Commission on Environment and Development . Aug. 1987. 2. “Re-Casting the Triple Bottom Line.” Center for Sustainable Innovation. Jun. 2007
    4. 4. <ul><li>Is it possible for the rate of human use of renewable resources to exceed the rate at which such resources are renewed or replenished? </li></ul>Addresses questions such as: 3 A Better Definition of Sustainability… 3. Daly H., Beyond Growth: The Economics of Sustainable Development . 253 pp. Boston: Beacon Press, 1996. <ul><li>Is it possible for the rate of human use of non-renewable resources to exceed the rate at which renewable replacements for such resources are developed? </li></ul><ul><li>Is it possible for the rate of waste emissions by humans to exceed the rate at which the environment can assimilate such wastes? </li></ul><ul><li>Is it possible for the rate of human, social, constructed and economic needs to exceed the rate at which they are being created? </li></ul>YES… Freshwater… fisheries… clean soil YES… e.g. Mineral replacements… YES… e.g. Superfund sites… YES… Healthcare in Africa… Education system in the US… Infrastructure in Mexico…
    5. 5. <ul><li>As the answers to the questions on the previous slide can be yes, we can say that the human activities associated with them are unsustainable. </li></ul>A Better Definition of Sustainability… (cont) In order to be sustainable, we must therefore address the impacts of human activity on the quality and sufficiency of vital capitals (renewable, non-renewable and societal) in the world.
    6. 6. <ul><li>“ Capital” is a stock of anything that yields a flow of valuable goods or services to people who need them. </li></ul><ul><li>Sustainability must therefore address and manage the impacts of human activity on the quality and sufficiency of vital capitals in the world… </li></ul>What is Capital? Linking Vital Capitals and Well-Being…
    7. 7. This is the capitals-based theory of sustainability, the foundation for most of what passes for mainstream practice in Sustainability Management. Vital Capitals and Well-Being Economic Capital Social Capital Environmental Capital Available flows of beneficial goods and services Appropriated by individuals and collectives Resulting in levels of individual and collective well-being CAPITAL FLOWS
    8. 8. Environmental Capital <ul><ul><li>Is the extension of the economic notion of capital to environmental goods and services. Environmental capital is thus the stock of natural ecosystems that yields a flow of valuable ecosystem goods or services into the future. For example, a stock of trees or fish provides a flow of new trees or fish, a flow which can be sustainable indefinitely. Environmental capital may also provide services like recycling wastes, water treatment and removal of air contaminants. </li></ul></ul>
    9. 9. Social Capital <ul><li>Social capitals required for human well-being include: </li></ul><ul><ul><li>Human capital - Individual knowledge, skills, and other assets (including human rights) required to take effective individual action. </li></ul></ul><ul><ul><li>Community capital - Shared knowledge and cooperative networks of people committed to achieving common goals (schools, hospitals, government, etc.) </li></ul></ul><ul><ul><li>Constructed capital - The material world that humans produce such as roads, utilities, etc. </li></ul></ul><ul><li>Also known as anthropogenic capital, because these capitals are produced by humans </li></ul>
    10. 10. <ul><ul><li>Should not to be confused with financial capital </li></ul></ul><ul><ul><ul><li>“ So, while the economic component of the triple bottom line is often assumed to be synonymous with financial performance [i.e., with the financial bottom line], in fact, there are significant differences between the two ….[E]conomics extends beyond the boundaries of a single organization ….A company’s investment in a community can serve as an engine of growth in the economy through employment, boosting local supply chains and developing a new skills base. The goods and services that companies produce can also contribute to a higher quality of life.” 4 </li></ul></ul></ul>Economic Capital 4. Henriques A., Richardson J. The Triple Bottom Line: Does It All Add Up? London: Earthscan Publications Ltd.., 2004.
    11. 11. Economic Capital <ul><li>There are many, and could be considered variants of social capital: </li></ul><ul><ul><li>Employment rates </li></ul></ul><ul><ul><li>Employees’ wealth </li></ul></ul><ul><ul><li>Owners’ wealth </li></ul></ul><ul><ul><li>Local, regional and global </li></ul></ul><ul><ul><li>commerce </li></ul></ul><ul><ul><li>Trading partners </li></ul></ul><ul><ul><li>Customers </li></ul></ul><ul><ul><li>Community economic affairs </li></ul></ul><ul><ul><li>Etc. </li></ul></ul>
    12. 12. What is then Sustainability? 5. McElroy, M. Social Footprints – Measuring the Social Sustainability Performance of Organizations. Dissertation, 2008 The Sustainability Professional studies and manages the impacts of an organizations’ activities on the quality and sufficiency of vital capitals wherever it operates, as required to ensure human well-being. Sustainability is the subject of a social or management science that studies and manages the impacts of human activity on the quality and sufficiency of vital capitals in the world, as required to ensure human well-being . 5
    13. 13. Part II - What is Sustainability Management (SM)? Sustainability Management Enterprise Orientation Social Benevolence Eco-efficiency Triple Bottom-Line Context Based Orientation Life Cycle Orientation Environmental Capital Economic Capital Social Capital LCA’s of Products and Services Environmental Capital Social Capital Refresher: to achieve Sustainability, SM must address all three vital capitals
    14. 14. <ul><li>Focus is on influencing sustainability performance at the organizational level </li></ul><ul><li>Activity- or operations-oriented </li></ul><ul><li>Seldom takes into account sustainability performance further up or down the supply or demand chains </li></ul><ul><li>Product- and life-cycle-based </li></ul><ul><li>Takes the position that it is more important to influence the environmental impact of a product throughout its entire life cycle </li></ul><ul><li>This approach examines the impact of a product from its inception as a raw material to its ultimate disposal following consumer use </li></ul>Enterprise Life Cycle Analysis Two common approaches to managing and reporting on sustainability that differ by boundary and content: Enterprise vs. Life-Cycle Orientations As here defined, LCA’s are an important element of Sustainability Management
    15. 15. <ul><li>Eco-efficiency </li></ul><ul><li>Social Benevolence </li></ul><ul><li>Triple Bottom Line </li></ul><ul><li>Context-based Sustainability </li></ul>Enterprise Orientation – Four Schools of Thought
    16. 16. <ul><ul><li>“ Industry is moving toward ‘demanufacturing’ and ‘remanufacturing’ — that is, recycling the materials in their products and thus limiting the use of raw materials and of energy to convert those raw materials…It is the more competitive and successful companies that are in the forefront of what we call ‘eco-efficiency’ ” 6 </li></ul></ul><ul><li>Arguably the basis of the “green” movement </li></ul><ul><li>Also the basis of life cycle orientations to sustainability, including LCAs </li></ul><ul><li>Is more about efficiency than sustainability, as the name suggests </li></ul>Eco-Efficiency 6. Schmidheiny S., Changing Course, The MIT Press, Boston: Apr. 1992
    17. 17. <ul><li>Similar terminology includes Corporate Responsibility and Corporate Citizenship; views sustainability in terms of social responsibility and philanthropy. Companies that adhere to this view tend to focus on social and economic impacts, and less in terms of environmental performance </li></ul><ul><ul><ul><li>…“ is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large” </li></ul></ul></ul><ul><ul><ul><li>(WBCSD, 1999) </li></ul></ul></ul>Social Benevolence (Corporate Citizenship and CSR)
    18. 18. <ul><ul><li>“ Today we think in terms of a ‘triple bottom line,’ focusing on economic prosperity, environmental quality, and — the element which business had preferred to overlook — social justice.” 7 </li></ul></ul><ul><ul><ul><li>Explicitly pluralistic in its orientation: social, economic, and environmental. Arguably the dominant sustainability paradigm in use today, including reporting requirements under the GRI, the leading measurement and reporting standard </li></ul></ul></ul>Triple Bottom Line 7. Elkington J., Cannibals with Forks, Capstone Publishing LTD. Sep.1999.
    19. 19. <ul><li>An approach that takes actual social, economic and environmental conditions in the world explicitly into account </li></ul><ul><ul><li>Knowledge of natural resource supplies tells us what our maximum impacts on the environment should be in order to ensure human well-being </li></ul></ul><ul><ul><li>Knowledge of social resource demands tells us what our minimum impacts on society and the economy should be in order to ensure human well-being </li></ul></ul><ul><li>Most of what passes for mainstream Sustainability Management tends to be context-free </li></ul>Context-Based Sustainability 8 8. McElroy M., “Sustainability Measurement and Reporting.” Deloitte . Weston, MA. 2010
    20. 20. Here’s the Company X performance with context missing Context-Based vs. Context-Free Example
    21. 21. Sustainability Threshold (performance above threshold is unsustainable) Here’s the Company X performance with context added Context-Based vs. Context-Free Example (cont.)
    22. 22. <ul><li>As Sustainability Management concerns itself with managing the impacts of human activity on the quality and sufficiency of our vital capitals as required to ensure human well-being, it follows that: </li></ul><ul><li>Only the Triple Bottom Line in conjunction with the context-based Sustainability approach allow us to manage all vital capitals needed to guarantee human well-being. </li></ul>What is then the Right Framework?
    23. 23. Part III – Developing a Sustainability Strategy 9 <ul><li>Objectives </li></ul><ul><li>Specific targets </li></ul><ul><li>Mission </li></ul><ul><li>Fundamental purpose </li></ul><ul><li>Values </li></ul><ul><li>Strategy </li></ul><ul><li>Prioritizes initiatives </li></ul><ul><li>Supporting </li></ul><ul><li>Organizational </li></ul><ul><li>Arrangements </li></ul><ul><li>Structure </li></ul><ul><li>Rewards </li></ul><ul><li>People </li></ul><ul><li>Systems </li></ul><ul><li>Strategic Analysis </li></ul><ul><li>Benchmarking </li></ul><ul><li>Assessment of impacts on vital capitals </li></ul><ul><li>Assessment of internal strengths and weaknesses </li></ul>9. Hambrick D., Fredrickson J., “Are You Sure You Have a Strategy.” Academy of Management Executive. 2001. Vol 15, No. 4.
    24. 24. Profit Margin Profit Margin Infrastructure Human Resource Management Technology Development Procurement Inbound Logistics Operations Outbound Logistics Marketing & Sales Service Support Activities Primary Activities Education and job training Diversity and discrimination Philanthropy Work-Life Balance Transportation impacts Pricing practices Marketing practices Product Safety Transparency Lobbying Tax Planning Stakeholder Alliances Supply chain practices Utilization of natural resources Trading Practices Commerce Impacts Emissions and waste Energy and water usage Worker safety and labor relations Hazardous materials Packaging use Transportation impacts Customer Assistance Quality of Life Relationships with universities Ethical research practices Conservation of raw materials Recycling Assessing Vital Capital Impacts – Value Chain 10 10. Porter, M. E., “Strategy & Society.” Harvard Business Review, Dec. 2006
    25. 25. Prioritizing Initiatives - Materiality Assessment 11 11. Global Reporting Initiative. Sustainability Reporting Guidelines. Amsterdam: 2006.
    26. 26. Implications for the EHS Professional Implications for the EHS Professional Leveraging Sustainability Part IV
    27. 27. Sustainability Management – Functional Support Environmental Capital <ul><li>EHS </li></ul><ul><li>Engineering </li></ul><ul><li>Facilities </li></ul>Social Capital Economic Capital <ul><li>IT </li></ul><ul><li>R&D </li></ul><ul><li>EHS </li></ul><ul><li>Engineering </li></ul><ul><li>Facilities </li></ul><ul><li>HR </li></ul><ul><li>Finance </li></ul><ul><li>IT </li></ul><ul><li>Marketing </li></ul><ul><li>Public Affairs </li></ul><ul><li>Accounting </li></ul><ul><li>Executive </li></ul><ul><li>Finance </li></ul><ul><li>Gvmt Relations </li></ul><ul><li>HR </li></ul><ul><li>IT </li></ul><ul><li>Quick Visual Scan Reveals… </li></ul><ul><li>Multi-functional support required </li></ul><ul><li>No clear right of ownership to SM </li></ul><ul><li>EHS is in prime position to drive both EHS performance improvement and career growth </li></ul>
    28. 28. <ul><li>Are EHS professionals properly trained, positioned and motivated to successfully deal with this new generation of issues and the changing perspectives on traditional issues? </li></ul>The Fundamental Question
    29. 29. Recent Presentation by EHS Professional… 12 Bruce A. Karas, MS, CIH, CSP, ROH  Director, Sustainability, Environmental and Safety
    30. 30. Yet Another… 13 David Eherts Ph.D. VP and Chief Safety Officer
    31. 31. Gretchen Digby  Senior Manager, Safety Engineering And Yet Another… 14
    32. 32. <ul><li>Are EHS professionals properly trained, positioned and motivated to successfully deal with this new generation of issues and the changing perspectives on traditional issues? </li></ul>Back to The Fundamental Question… Without a doubt... the answer is YES!
    33. 33. If appropriate , and depending on specific responsibilities and available resources, we should accept responsibility for driving Sustainability throughout our organizations. As shown above, EHS professionals have as much at stake in Sustainability Management as any other , and we’ve also proven to have the ability to take ownership of the program and drive it to success. We will however have to show the desire to learn new fields, the open-mindedness to accept new perspectives on traditional issues , and the passion to drive change. What to do?
    34. 34. Summary and Conclusion Sustainability is defined as that subject of management science that studies the impacts of human activity on the quality and sufficiency of vital capitals in the world as required to ensure human well-being. The Sustainability Professional studies and manages the impacts of corporate activities on the quality and sufficiency of vital capitals wherever it operates. The EHS professional, because of organizational positioning and experience in managing environmental and social capitals, is in prime position to gain responsibility and accountability for designing and implementing the organizations’ Sustainability strategy. The associated increased visibility and potential linkages to business drivers could drive both safety performance and career growth.
    35. 35. <ul><li>“ Our Common Future.” World Commission on Environment and Development . Aug. 1987. </li></ul><ul><li>“ Re-Casting the Triple Bottom Line.” Center for Sustainable Innovation. Jun. 2007 </li></ul><ul><li>Daly H., Beyond Growth: The Economics of Sustainable Development . 253 pp. Boston: Beacon Press, 1996. </li></ul><ul><li>Henriques A., Richardson J. The Triple Bottom Line: Does It All Add Up? London: Earthscan Publications Ltd.., 2004. </li></ul><ul><li>McElroy, M. Social Footprints – Measuring the Social Sustainability Performance of Organizations. Dissertation, 2008 </li></ul><ul><li>Schmidheiny S., Changing Course, The MIT Press, Boston: Apr. 1992 </li></ul><ul><li>Elkington J., Cannibals with Forks, Capstone Publishing LTD. Sep.1999. </li></ul><ul><li>McElroy M., “Sustainability Measurement and Reporting.” Deloitte . Weston, MA. 2010 </li></ul><ul><li>Hambrick D., Fredrickson J., “Are You Sure You Have a Strategy.” Academy of Management Executive. 2001. Vol 15, No. 4. </li></ul><ul><li>Porter, M. E., “Strategy & Society.” Harvard Business Review, Dec. 2006 </li></ul><ul><li>Global Reporting Initiative. Sustainability Reporting Guidelines. Amsterdam: 2006. </li></ul><ul><li>Karas B., “Sustainability: Coca Cola North America, System Actions to Support our Sustainability Strategy.” Occupational Safety & Health Group: ORC Worldwide. Washington D.C. 2009. </li></ul><ul><li>Eherts, D. “Leveraging Safety & Health to Enhance Labor Relations.” Occupational Safety & Health Group: ORC Worldwide. Washington D.C. 2009. </li></ul><ul><li>Digby G., “From Safety to Sustainability: an Ingersoll Rand Case Study.” Occupational Safety & Health Group: ORC Worldwide. Washington D.C. 2009. </li></ul>References

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