3. Pure Strategies Capabilities Corporate Strategy Clean and Lean Production Supply Chain and Product Stewardship Safer Chemicals and Materials Sustainable Product Design Life Cycle Analysis CSR Reporting Water Footprinting Engineers, Scientists, Manufacturing Experts, Business Professionals 3 Data Wrangling
5. Session Goals Clarify my company’s data management needs Understand the context for Networking How to make business case for systems to manage this data Data Wrangling 5
6. AGENDA Context Activity Lecture Activity Lecture Conclusion Managing data has become extremely complex for today's businesses. We are awash in sustainability data from offices, stores, operations, tier 1 suppliers, employee travel, bills of materials, ERP systems, logistics, restricted substance lists, and life cycle studies. In an age of increasing transparency, managing and communicating your sustainability data has taken on key strategic importance. During this interactive session, you will learn how to determine how to decide what types of data are important, which metrics make sense, and how to track your company-level sustainability data and examine the tradeoffs of various accounting tools and methodologies. This interactive session is built on Pure Strategies 15 years of experience working with brands such as Stonyfield Farm, Seventh Generation, Mars, Dell, and The North Face. Data Wrangling 6
7. Around the Clock Buddies Metrics: Measuring What Matters 7 12 11 1 2 10 9 3 8 4 7 5 6 Fill your calendar!
9. Awash in a sea of metrics Corporate Social Responsibility Metrics Carbon Disclosure Project Metrics Customer Metrics Supplier Metrics Green Building Metrics Product Metrics Ecosystem Metrics Metrics: Measuring What Matters 9
10. Drivers Data Wrangling 10 12 11 1 2 10 9 3 8 4 7 5 6 What are the key drivers for your organization to track sustainability data?
11. Sustainability Reporting is Mainstream 11 CDP GRI Companies that don’t publicly report sustainability data are increasingly viewed as laggards by investors, customers and other stakeholders Data Wrangling
19. Requests from Top Customers/RFP Increase 14 Manufacturer (P&G) Retailer (Walmart) “Environmental data asked for in 300 RFPs last year” – F500 Global mfg Data Wrangling
28. Emissions Data Flow to Investors 19 CDP data displayed on Bloomberg terminals and Google Finance Ratings are displayed in the “Key stats and ratios” section of Google Finance, alongside key financial data. Data Wrangling
29. Non-financial and Financial Reporting Combine 20 Novo Nordisk Combines CSR and Annual Report FASB and other accounting boards are studying issue Data Wrangling
46. Mission Program and Report Mission Report Produced quarterly Measures Stonyfield performance against its mission Targeted for internal use Mission Program Program with middle managers to identify gaps in mission performance and Develop projects to address gaps 28 Metrics: Measuring What Matters
47. The Mission To serve as a model that environmentally and sociallyresponsible businesses can also be profitable. To educateconsumersandproducers about the value of protecting the environment and of supporting family farmers and sustainable farming methods. To provide a healthful, productive and enjoyable work place for allemployees, with opportunities to gain new skills and advance personal career goals. To recognize our obligations to stockholders and lenders by providing an excellent return ontheirinvestment. To produce the very highest quality all natural and Certified Organic products that taste incredible. 29 Metrics: Measuring What Matters
48. Metrics Metrics: Measuring What Matters 30 Employee Well-being Healthful Workplace Indicators 1.Lost Work Day Illness Injury Rate 2.Ergonomic Safety 3.Physical climate measurement Enjoyable Workplace Indicators 4.Compensation 5.Holidays 6.Vacation 7.Turnover 8.Length of Service 9.Stock Ownership 10.Employee Recognition 11.People event hours Opportunities to gain New Skills and Advance Personal Career Goals Indicators 12.Internal Advancement 13.Education/Training 14.Tuition Reimbursement 15.Employee Climate Survey Results Family Farms & Sustainable Agriculture Percent of Organic Sales Organic Acres Supported No. of Small Family Dairy Farms Supported Percentage of Milk from Small Farms Price Paid to Farmer (milk only) Environment Resource Use Solid Waste Wastewater and Water Use Packaging Pesticides and Toxics Hazardous Chemicals Pesticides Energy Use, GHG & Air Emissions Facility Greenhouse Gas Emissions Supply Chain Greenhouse Gas Emissions Acidification
49. More Metrics Profitability Stock Value (price per share) Gross Revenue ($, percent change) Market Share Price/Earnings ratio Net Income ($, percent change) Quality Consumer complaints Product Recalls Reject Rate Metrics: Measuring What Matters 31
52. Mission Action Program Achieved 46% absolute reduction in transportation GHG 2006-2010 ($7.6 million in savings). Prevented 18 tractor-trailer loads plastic per year ($3.2 million in savings). Reduced facility energy and GHG 11% 2007 - 2010 ($2 million in savings). Reduced solid waste by 39% 2007 - 2010 ($450,000 in savings). Metrics: Measuring What Matters 34
53. Metrics in the Context of a Corporate Sustainability Program Vision Management Systems Goals & Programs Data Management & Decision Tools Underlying Data 35 Metrics: Measuring What Matters
54. How do we select our metrics in context of a Corporate Sustainability Program? Radio Flyer Supply Chain 36
55. Positioning Lead the Future Meet Market Needs increasing integration Develop next generation products Anticipate Market Needs Listen to stakeholders Innovate faster Meet customer requirements Compliance Meet legal requirements 37 Metrics: Measuring What Matters
69. Demonstrated leadershipKey Activities Sustainability Council Functional Management Embedded in Company DNA Organization 39 Metrics: Measuring What Matters
70. Seventh Generation Virginia Manufacturing ~ $600M, 6 facilities Private label supplier of wipe products Emphasis on quality, price, delivery. Very high recent growth No sustainability program, but wants to introduce one ~ $200M sales, no mfg Leading household green brand for 20+ years Facing challenges from larger players (Chlorox) and new niche players (Method) Established sustainability program, needs to stay on top Metrics: Measuring What Matters 40
71. Strategy Summary Seventh Generation Virginia Manufacturing Maintain leadership & differentiation Key Issues: climate change, health, packaging, sustainable sourcing Goal Criteria Influence Beyond Our Size Radical Transparency Systems Thinking Create a Just and Equitable World Inspire Conscious Consumption Restore the Environment Anticipate customer needs in 3 years Year 1: focus on operations Key Issues: water, energy, waste, transportation Goal Criteria Measurable Relevant Accountable Cost effective Metrics: Measuring What Matters 41
76. Sustainability Management System? ISO 14001 – Environmental OHSAS 18001 – Health & Safety ISO 26000 – Social Responsibility AS 8003 – Corp. Social Responsibility BS 8900 – Sustainable Development ISO 50001 – Energy Management Investors in People Standard (UK) Data Wrangling 46
77. Linking to the Strategic Planning/Budgeting Processes Planning coincides with annual budget planning Data Wrangling 47
78. Key Features? Data Wrangling 48 12 11 1 2 10 9 3 8 4 7 5 6 What are the key features I want in a software solution? key drivers positioning & strategy
80. Spreadsheets Most Common Natural starting place Challenges Reconciling year-to-year datasets Creating and enforcing data ownership, including global standards for asset types and energy use Entering data error-free, especially without proper cell protection and validation formulas Generating real-time reports and viewing across the organization Obtaining ad-hoc reports and analysis Managing and sharing large files 50 Data Wrangling
87. Typical Corporate Level Software ToolStep by Step – all Systems Step 1: Data Entry Get sites & assets into database On a periodic (monthly) basis, gather all key data (energy, water, waste, etc.) Step 2: Manipulate Data Run calculations Ensure all data is uploaded & QC’d Step 3: Generate reports Internal/External reports Dashboards, graphs, automatically email, show progress against goals Data Wrangling 53 Software as a Service (SaaS)
96. Software Vendor Landscape 75+ software vendors 2011 EECA Leaders are shown below (listed alphabetically): Advantage IQ Enablon EnerNOC Enviance Hara IHS Johnson Controls PE International SAP Summit Energy 58 Data Wrangling
98. Enterprise Carbon System Cost (I) Pricing information is difficult to obtain Hosted or software-as-a-service (SaaS) products for basic carbon management (Scope 1 and 2, with water and waste tracking) and reporting $20K to $80K per year, depending on feature depth number of facilities languages, and other factors. Cost is greater if purchasing other modules (e.g., energy management) EHS vendors tend to sell many modules (20+), carbon module often priced together as part of a much larger suite. Data Wrangling 60
99. Enterprise Carbon System Cost (II) They don’t have per user pricing Typically 3 year contract EHS & Energy Management system Sometimes free or highly discounted if purchased as an additional module Data Wrangling 61
112. Top CustomersReduce corporate energy reduction Company-wide energy use database Internal benchmarking Increase productivity Free up EHS and Sustainability team for analysis, not spreadsheet guru’s 72 Data Wrangling
113. The Ask What do I need to ask of management once I have developed the business case? Data Wrangling 73
114. Summary Trends Sustainability Reporting is Main Stream Green Ratings Matter Investors Care Non-financial and Financial Reporting Combine Sustainability Impacts Key Business Processes Corporate Energy Management Emerges Spreadsheets Not Sufficient to Support Processes Get organized and do your homework There is no system that will meet all of your needs. 74 Data Wrangling
