10.19.2011

Winston Keynote Speech at the NAEM Forum: Green Recovery – Get Lean, Get Smart, and Emerge from the Downturn on Top

The 19th Annual NAEM Forum began today with a morning keynote from Andrew Winston, co-author of Green to Gold.  He based his presentation on his most recent book, Green Recovery: Get Lean, Get Smart, and Emerge from the Downturn on Top. Some key points from his talk are below.

Winston argued that, though it may seem counterintuitive, these challenging times actually provide the perfect moment to double-down and invest in a strong sustainability program. This kind of program can be a catalyst for unbridled innovation. Forward-thinking leaders, he said, understand this and are acting accordingly.

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10.13.2011

Evolving to Sustainability 4.0, Value Chain Indices, and EHS/S Support with Developing Dimensions of Measurement

Sustainability has evolved from a reactive and defensive endeavor to one that is generative and central to all aspects of business decisions. This was a clear message expressed throughout the recent CR Commit Forum.

Commonly used was the phrase, “Sustainability equals efficiency.” That is, organizations that have a strong sustainability perspective and culture also have improved efficiency, effectiveness, and profitability. Yvon Chouinard et al echoes this sentiment in “The Sustainable Economy” in the current issue of the Harvard Business Review, which presents four sustainability eras: sustainability 1.0. 2.0, 3.0, and ideas for sustainability 4.0, where “sustainability will simply be [come] how business is done.”

The ideas presented in “The Sustainable Economy” are important for EHS/S professionals to understand and embrace. For instance, the phenomena of creating a sector-specific Value Chain Index (VGI) is innovative, cutting-edge, and appears to provide a powerful way to catapult sustainability, not only in an organization, but also more broadly in a market sector. The authors outline a process that Chouinard’s company (Patagonia) and Walmart, with assistance from BluSkye (a strategy consultancy), used to develop a VGI for the Sustainable Apparel Coalition (SAC).

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9.30.2011

Terms and Definitions in the CR/Sustainability Space

This past week, CR Magazine and NYSE Euronext co-sponsored the CR Commit Forum 2011 in New York City. The agenda was packed with valuable sessions that addressed a wide range of CR (Corporate Responsibility) and sustainability topics, issues, and challenges. Over the next several weeks, I will share insights and information from the Forum.

One of the predominant issues that struck me was the plethora of terms and definitions used to define the CR/sustainability space. Martin Reeves, senior partner and managing director at the Boston Consulting Group (BCG), discussed this in his keynote presentation, stating that the “concepts are treacherously fuzzy.” He presented a powerful visual: a word cloud that contained more than 40 words and terms used by respondents of the 3rd Annual Sustainability Global Executive Survey, conducted by MIT’s Sloan Management Review and BCG. Read More

9.15.2011

The Era of Transparency and a Mandatory Reporting Trajectory Point to the Need for a Strong Risk Management Framework

In the sustainability and corporate social responsibility (CSR) “space” there is increasing pressure to report on triple-bottom-line issues through reporting frameworks, such as the GRI G3. There is a trajectory toward quasi-mandatory reporting by value-chain stakeholders and actual mandatory reporting by regulatory-bodies. Quasi-mandatory reporting is seen with the inclusion of GRI sustainability reporting as tracked by Bloomberg’s Index and other financial indices. Mandatory reporting is seen in South Africa, Denmark, and France. Read More

6.22.2011

ISO 50001 Just Published – “Energy Management Systems – Requirements with Guidance for Use”

The much anticipated ISO management system for energy management was published on June 15. The ISO 50001 format closely follows ISO 14001 on environmental management. I will be posting comments over the next couple of weeks regarding things I see in it and issues that will help with implementation and integration.

At first glance, where an ISO 14001 or OHSAS 18001 management system is in place, integration of ISO 50001 will be somewhat straightforward.

A unique piece for 50001 is section 4.4.3 that addresses “energy review.” This is the equivalent of environmental aspects in 14001 and risk assessment in 18001. While this standard is new and interpretations will be fleshed out in the coming months and years, the interpretation of “energy” may not be trivial when considering conformance with 50001. The way it is defined will impact how the energy review requirements will be met. Read More

6.21.2011

Nonfinancial Reporting for Global Companies and Momentum Toward Integrated Reporting – A Call for EHS/S Leadership

With the evolution of the Triple Bottom Line, CSR, and sustainability issues over the past several decades, there has been increased attention given to nonfinancial reporting and the integration of nonfinancial, operational, and financial metrics.

This may seem to be a heady and non-relevant topic for EHS/S professionals, but I would suggest that EHS/S professionals should understand them because they will soon be affected by them, if they haven’t been already (e.g., developing EHS/S KPIs). With an understanding of these issues, EHS/S professionals and executives can provide important leadership in this area within their companies. Read More

5.27.2011

EHS/S and CSR Career Management and Growth in an Evolving Field

A goal of business functions such as quality, EHS/S, and CSR is to become embedded in the core business. This is also talked about in terms of becoming fully integrated in the business. A small research project I conducted in 2007 examined issues and challenges associated with “integrating” EHS/S in a company. Several of the EHS/S executives I interviewed at that time expressed concern that if EHS/S was fully integrated in a company, it would disappear. This possibility concerned them; the challenge, they said, was to integrate, but to also maintain visibility and evolve.

Over the years, EHS management system experts have voiced a similar concern with the development of generic, or fully integrated, management systems that include EHS, sustainability, security, quality, etc.

The Spring 2011 issue of the Corporate Citizen contains an article that touches on the integration/disappearing phenomenon associated with CSR and its professionals. Several interviewees suggest that CSR might go away in a company since its goal is to become fully embedded in the core business. This sounds familiar. Read More

5.25.2011

Supercharging Your EHS/S MS Management Review – Developing a Strategic Risk Management MS

Many EHS/S management system experts believe that one of the most important components of an integrated MS is management review. Management review is the time during which the overall strategy of an integrated EHS/S MS is assessed. Said differently, it is a time to see if the MS’s purpose and desired outcomes are being fulfilled. Management review is commonly framed as a performance evaluation activity. While this is correct, I would suggest that there is much more available through management reviews—that is, these are strategic opportunities to impact an organization’s Strategic Risk Management (SRM) process, and possibly start developing an SRM MS.

Enterprise Risk Management and the evolution of Strategic Risk Management are relatively new in the domain of organizational and management science. While strong frameworks for financial risk management have evolved, this is not the case for overall non-financial risks and their management. In particular, there is an absence of a universally accepted management system approach in this arena. Yes, the ISO 31000 standard on risk management goes a long way toward helping, but it is not a management system, per say. Rather, it is intended to augment an existing MS framework. Read More

3.17.2011

Nuggets of Gold for EHS/S Professionals from Boston College’s Corporate Citizenship Profile 2010

Boston College’s Center for Corporate Citizenship released “Profile of the Practice 2010: Managing Corporate Citizenship as a Business Strategy” in December 2010. The report provides a robust overview of the current state of CC/CSR from 190 responses to a Center survey conducted in June and July of 2010. The report characterizes respondents as mostly “large public corporations with an international scope”; 60 percent of the companies had annual revenues over $1B.

The report generally shows increased involvement of EHS/S professionals and departments in CC/CSR activities from its 2008 Profile report. The trend is toward cross-functional teams: 40 percent report that EHS departments were on their CC/CSR cross-functional team. These teams were predominately represented by Communications/PR (66% percent) and Community Involvement/Foundation (65 percent). The remaining 60 percent related to EHS indicates an opportunity for greater involvement for EHS/S professionals.

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2.18.2011

Integrated Reporting – What’s Your EHS and Sustainability Department’s Role?

An evolving component of sustainability management is the use of integrated reports that capture an organization’s financial, environmental, social, and governance performance in one document. A seminal event on this was held last October (2010) at Harvard Business School (HBS).

The event, “A Workshop on Integrated Reporting: Framework and Action Plan,” was sponsored by HBS’s Business & Environment Initiative. After the event, HBS published an e-book of the proceedings, a beefy publication with 64 chapters that cover a wide range of integrated and sustainability reporting topics. Read More

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