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

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

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.

Read More

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

11.16.2010

EHS, Sustainability, and CSR Professionals as Transformative 3rd-Generation Leaders

At the Pegasus Conference 2010: Systems Thinking in Action, held last week in Boston, several pioneers—including Daniel Kim, Robert Fritz, and Peter Senge—presented nuggets of wisdom for EHS, Sustainability, and CSR professionals. I’ve shared a few of them below.

Daniel Kim discussed what he calls “The 3rd-Generation Leadership Challenge.” Speaking generally about two eras—the industrial revolution era and the current “knowledge and learning” era—he characterized the evolution of leadership as having two generations in the industrial revolution (Pioneer- and Manager-Leaders) and four leadership options in the current era (which he refers to as 3rd-Generation Leadership: Parasite-, Operator-, Stagnant-, Learning/Transformative-Leaders). Read More

11.12.2010

Characteristics of Corporate Environmental Sustainability Practices

A robust study[1] of corporate sustainability practices as been conducted by Cowan et al. The authors correctly indicate that there is a void in standardized approaches in this area, with many companies relying on guidance or criteria set forth by the Global Reporting Initiative (GRI), in ISO standards such as 14001, and in the Dow Jones Sustainability Indexes. They also observe that numerous names and labels are used to describe sustainability in companies such as Sustainability Programs, Corporate and/or Social Responsibility Reports, and Global Citizen Reports.

The authors identified nine components of sustainability programs common to the 130 companies they examined. These were grouped into three areas: Resource Management (Solid Waste, Water Conservation); Energy Management (Energy Conservation, Renewable Energy, GHG Emission Reduction, Energy Efficient Construction, e.g., LEED); and Product Sustainability (Product Transportation, Supply Chain Audit, Product Stewardship, Life-Cycle Program). Read More

11.12.2010

The New Intelligent Enterprise: What Are Your EHS/Sustainability/CSR Analytics?

Recently, more companies have focused their attention on analytics and the role that they play in reinventing company management practices. Participants at MIT’s CIO Symposium on “Emerging Stronger from the Downturn” reported an increased use of data analysis and analytics applications to “understand customers, parse trends, distribute decision making, and manage risk.”

To help managers capitalize on the ways in which information and analytics are changing the competitive landscape, MIT Sloan School of Management and the IBM Institute for Business Value have initiated a research program entitled “The New Intelligent Enterprise,” which addresses the following: Read More

10.19.2010

Auditing Your Supply Chain for Sustainability and CSR

Understanding and crafting your supply chain is an integral part of a meaningful sustainability/CSR strategy. The inputs to your products and services play a huge role in defining them in this sustainability/CSR era. For instance, the amount of water used in producing a liter of soda, or the labor practices in harvesting cotton used in making a T-shirt have become significant issues for manufacturers of these products.

Measuring and auditing supply-chain performance is challenging. A short piece in the current issue of the Harvard Business Review (Oct, 2010) reports on an HBR Advisory Council survey that indicates companies are hampered in efforts to impact supply-chain performance because of costs, complexity, and lack of information.

Read More

5.19.2010

A Management of Change Boost with Organizational Learning and Systems Thinking Tools

As a living system, a company’s risk profile is continually shifting. The growing attention on sustainability and corporate responsibility (CSR) has stretched companies as they wrestle with ways to characterize and manage their sustainability and CSR risks.

Integrated EHS, sustainability, and CSR management systems provide a robust structure to manage risks.  A key concept in an integrated management system is “the management of change” (MOC), which focuses on identifying and managing risks as operations or the operating environment change. MOC procedures and process typically kick in when new equipment or manufacturing lines are installed, during mergers and acquisitions, or during internal re-organizations. On the corporate responsibility front, forward-thinking companies include the monitoring of third-party monitoring criteria in their MOC process.

Strong MOC processes are part of a company’s first line of defense for risk reduction. The MOC process should detect most risks that arise in between formal risk assessments. Read More

4.30.2010

Building the Sustainability/CSR Department and Personnel Competencies

With the increasing need to address Sustainability and Corporate Social Responsibility (CSR) issues, organizations are faced with several options on how to proceed in developing their internal capabilities. Beyond their sustainability and CSR strategy, there are nuts-and-bolts issues to consider, such as who will lead the effort and how to build the team or department.

A common starting place is to tap the EHS department and their personnel. The logic behind this is solid, given how central EHS is to sustainability and CSR. While the EHS function and its personnel are a good starting point, sustainability/CSR quickly encompasses areas in the organization well beyond EHS.

The C-Suite must consider how it is going to identify and develop its people who lead and manage sustainability/CSR. In the case of EHS professionals, those competencies and skills go beyond their solid technical foundation. Read More

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