MGT515
AKA-Pro
SecondEdition-345.pptxPractical Sustainability Strategies: How to Gain a Competitive Advantage 2nd Edition
Chapters 3, 4, & 5
C.E.R.E.S.
The Coalition for Environmentally Responsible EconomieS
154 Institutional Investors
Over 83 companies endorsing principles
CERES Investor Network
Addenda Capital
AFL-CIO
AGF Investments
American Fed of State, County and Municipal Employees
Amherst College
Arabesque Asset Management
Arjuna Capital
As You Sow
Bailard
Baldwin Brothers
Bentall Kennedy
BlackRock, Inc.
BNP Paribas
Boston Common Asset Management, LLC
Breckinridge Capital Advisors
Brown Advisory
Caisse de depot et placement du Quebec
California Public Employees' Retirement System
California State Controller's Office
California State Teachers' Retirement System
California State Treasurer's Office
Calvert Research & Management
Capricorn Investment Group, LLC
CCLA Investment Management
Christian Brothers Investment Services, Inc.
Church Pension Group
Clean Energy Ventures
ClearBridge Investments
Connecticut Office of the State Treasurer
CtW Investment Group
Dana Investment Advisors
DBL Partners
Deutsche Asset Management
CERES Investor Network
Domini Impact Investments LLC
Doris Duke Charitable Foundation
Double Time Capital
East Bay Municipal Utility District Retirement System
Encourage Capital
Essex Investment Management, LLC
EverHope Capital
Fidelity Investments
First Affirmative Financial Network, LLC
Florida State Board of Administration
Friends Fiduciary Corporation
Generate Capital
Generation Investment Management
Green Century Capital Management
Greentech Capital Advisors
Grinnell College
Hannon Armstrong
Hermes Investment Management
IFM Investors
Illinois State Treasurer
Impax Asset Management LLC
Inherent Group
International Brotherhood of Teamsters, Pension Fund
Jantz Management LLC
CERES Investor Network
JLens Investor Network
John Merck Fund
Jonathan Rose Companies
KBI Global Investors
Kendall Sustainable Infrastructure, LLC
KKR & Co. L.P.
Laborers' International Union of North America
Laird Norton Family Foundation
Legg Mason Inc.
Local Authority Pension Fund Forum
Macroclimate LLC
Maine Public Employee Retirement System
Makena Capital Management
Manulife Asset Management
Marshall Street Management
Maryland State Retirement and Pension System
Maryland Treasurer's Office
Massachusetts Office of the State Treasurer
Mercy Investment Services, Inc.
Miller/Howard Investments, Inc.
Minnesota State Board of Investment
Mirova
Montgomery County Employees' Retirement System
Morgan Stanley
Natixis Investment Management
NEI Investments
Nephila Capital
Neuberger Berman
New Mexico State Treasurer's Office
New York City Employees' Retirement
CERES Investor Network
New York City Office of the Comptroller
New York State Comptroller
New York State Teachers' Retirement System
Nova Scotia Pension Services Corporation
Nuveen, the investment manager of TIAA
Oak Hill Capital Partners
OPTrust
Oregon Office of the State Treasurer
Parametric
Park Foundation
Parnassus Investments
Pax World Management Corp.
Pegasus Capital Advisors
Pennsylvania Treasury Department
Permian Global
PGIM
Portico Benefits Services
Praxis Mutual Funds
Presbyterian Church (USA)
Princeville Global
Progressive Investment Management
Reynders, McVeigh Capital Management
Rhode Island Office of the General Treasurer
Rockefeller Brothers Fund
Rockefeller Capital Management
San Francisco Employees' Retirement System
Seamans Capital Management, LLC
Seattle City Employees' Retirement System
SEB Investment Management
Service Employees International Union
CERES Investor Network
Seventh Generation Interfaith Coalition for Responsible Investment
Skoll Foundation
Sonen Capital
State Street Global Advisors
Sumitomo Mitsui Trust Bank
Sustainable Insight Capital Management
Terra Alpha Investments
The Bullitt Foundation
The Christopher Reynolds Foundation
The George Gund Foundation
The Lemelson Foundation
The McKnight Foundation
The Nathan Cummings Foundation
The Needmor Fund
The Russell Family Foundation
The Sierra Club Foundation
The Sustainability Group at Loring, Wolcott and Coolidge
The Vermont Community Foundation
Tri-State Coalition for Responsible Investment
Trillium Asset Management
Trustees of Donations to the Protestant Episcopal Church
UAW Retiree Medical Benefits Trust
Unitarian Universalist Association
United Church of Christ - Pension Boards
United Nations Joint Staff Pension Fund
University of California
University of Washington
VantagePoint Capital Partners
Veris Wealth Partners
Vermont Office of the State Treasurer
CERES Investor Network
Walden Asset Management
Washington State Investment Board
Washington State Treasurer
Water Asset Management
Wells Fargo Asset Management
Wespath Benefits and Investments
Zevin Asset Management
Network Members
Network Members
Network Members
Network Members
C.E.R.E.S. Principles
1. Protection of the Biosphere
2. Sustainable Use of Natural Resources
3. Reduction and Disposal of Wastes
4. Energy Conservation
5. Risk Reduction
C.E.R.E.S. Principles
6. Safe Products and Services
7. Environmental Restoration
8. Informing the Public
9. Management Commitment
10. Audits and Reports
CERES “Roadmap to Sustainability”
20 Expectations of the Road Map
Governance for Sustainability
Stakeholder Engagement
Disclosure
Performance
Governance for Sustainability
G1 – Board Oversight
G2 – Management Accountability
G3 – Executive & Employment Compensation
G4 – Corporate Policies and Management System
G5 – Public Policy
Stakeholder Engagement
S1 – Materiality Assessment Process
S2 – Substantive Stakeholder Dialogue
S3 – Investor Engagement
S4 – C-Level Engagement
S5 – Strategic Collaboration
Disclosure
D1 – Standards for Disclosure
D2 – Disclosure in Financial Findings
D3 – Scope & Content
D4 – Vehicles for Disclosure
D5 – Verification & Assurance
Performance
P1 – Operations
P2 – Supply Chain
P3 – Transportation & Logistics
P4 – Products & Services
P5 – Employees
Turning Point – Progress of Roadmap
Materiality matters – but not clear
Executive oversight improves
Employee engagement works, but not enough training
Financial risk disclosure improves, but lacks detail
Insufficient targets for climate change goals
More commit to water stewardship, but don’t prioritize
Human rights improves, but protection systems scarce
Sustainable supply chains are improving, but need more
Diversity is improving, but need to incentivize change
Accountability at top is critical – need to hit paychecks
Other Principles
The Earth Charter
The Precautionary Principle
The Houston Principles
FSC Principles
MSC Principles
The Asilomar Declaration for Sustainable Agriculture
A Few More Principles
The Hannover Principles
The Five Principles of Ecological Design
Sanborn Principles
U.S. Green Building Council
Biomimicry Principles
Permaculture Principles
The Chicago Principles
Drafted April 2004
Never Implemented as of November 2010
Draft of Chicago Principles
Champion positive change
Embrace city’s extraordinary diversity
Adopt integrated approach to decision-making
Focus on profitable businesses
Foster inter-generational responsibility
Chicago Principles (cont’d)
Rely on sunlight, wind and water
Cultivate vibrant neighborhoods
Make and use things that are safe, reusable and recyclable
Seek constant improvement
Lead by example
UN Global Compact
Globally most popular sustainability principles
Over 9,000 company signatories and 3,000 others, in 130 countries
Signatories must:
Have CEO and Board adopt UNGC Principles
Respect the Principles across operations and supply chains
Provide advocacy, collaboration and philanthropy for society
Submit an annual Communication on Progress (COP) report on conformance with the Principles (most use their GRI reports)
Participate in the relevant UNGC Local Network
UN Global Compact
Human Rights*
Businesses should:
support and respect the protection of internationally proclaimed human rights; and
make sure that they are not complicit in human rights abuses.
UN Global Compact
Labor
Businesses should:
uphold the freedom of association and the effective recognition of the right to collective bargaining;
the elimination of all forms of forced and compulsory labor;
the effective abolition of child labor; and
the elimination of discrimination in respect of employment and occupation.
UN Global Compact
Environment
Businesses should:
support a precautionary approach to environmental challenges;
undertake initiatives to promote greater environmental responsibility; and
encourage the development and diffusion of environmentally friendly technologies.
Anti-Corruption
10. Businesses should work against corruption in all its forms, including extortion and bribery.
2015-30 SDG Topics
UN Sustainable Development Goals
1. No Poverty
2. Zero Hunger
3. Good Health and Well Being
4. Quality Education
5. Gender Equality
UN Sustainable Development Goals
6. Clean Water and Sanitation
7. Affordable and Clean Energy
8. Decent Work and Economic Growth
9. Industry, Innovation and Infrastructure
10. Reducing Inequalities
UN Sustainable Development Goals
11. Sustainable Cities and Communities
12. Responsible Consumption and Production
13. Climate Action
14. Life Below Water
15. Life on Land
UN Sustainable Development Goals
16. Peace, Justice and Strong Institutions
17. Partnerships for the Goals
Real Positive View of the Goals
The Natural Step
Founded by Karl-Henrik Robért
Swedish oncologist
Applied funnel effect
The Natural Step
Founded by Karl-Henrik Robért
Swedish oncologist
Applied funnel effect
Developed four system conditions based on science
Four Scientific Principles
Everything spreads
Nothing disappears
Concentration and structure give value
Green cells concentrate and give structure
Condition No. 1
Do not systematically increase concentration of substances extracted from the Earth’s crust
Do not remove fossil fuels, metals, minerals faster than reintegration
Concentrations would increase in ecosphere
Condition No. 2
Do not systematically increase concentrations of substances produced by society
Similar to first condition (synthetically produced)
Same impact if neglected
Condition No. 3
Do not systematically mismanage the ecosphere
Do not over-harvest fertile areas, soils, fresh water
Do not diminish availability of natural systems
Condition No. 4
Resources are used fairly and efficiently in order to meet basic human needs worldwide
Must use most resource-efficient methods possible
Necessary condition if first three are met
Eight Key Concepts for Action
Renewable (System Condition 1)
Degradable (2)
Sortable (4)
Nature (3)
Save (4)
Quality (4)
Efficiency (4)
Reuse (4)
Companies Employing The Natural Step
IKEA
Interface
Starbucks
Nike
IKEA Adopts TNS
Founded in 1943
Ingvar Kamprad in Elmtaryd Agunnaryd
Formaldehyde problem
First Environmental Day in 1990
Adopted TNS in 1992
Integration: Action and Results
Environmental Adaptation of the Product Range
Sustainable Forestry
Environmental Work with Suppliers
Transport and Distribution
Meeting the Customer
Interface: “The Next Industrial Revolution”
Ray Anderson – Founder, Chairman, CEO
Strived to set an example in industrial ecology
Read two books: “The Ecology of Commerce”, “Ishmael”
In 1994, started QUEST; in 1995, PLETSUS
Adopted TNS in 1996
Interface and The Natural Step
Education and Training
Employee Participation
Integration: Action and Results
Elimination of Waste
Benign Emissions
Renewable Energy
Closure of the Loop
Resource-Efficient Transportation
Sensitivity Hookup
Redesign of Commerce
Starbucks and The Natural Step
Howard Schultz attends coffee conference in Italy, 1983
Forms Il Giornale
Two-day workshop in 2000
Adopted the TNS framework
Sourcing practices
Transportation
Energy and water consumption
Store design & operations
Nike and The Natural Step
1962 – Bill Bowerman and Phil Knight
1993 – Formed NEAT (Nike Environmental Action Team)
1998 – Adopted TNS
Provides shared language & selection of guiding principles
Scientifically robust
Uses systems perspectives
Non-judgmental
Principles work across different cultures.
VinylPlus – European Commitment to PVC
PVC – longtime environmental problem
Program launched in 2011 with goal of 2020
Measures based on TNS
Dow Chemical Measures UP
Dow Chemical listed in Dow Sustainability Index 9 times
Established sustainability goals in 1996
Added 7 new ones in 2006
Saved $5 billion during 10 year period
Pratt & Whitney Canada
Engaged TNS in 2011
Want to become “the best aerospace company FOR the world”
Parent company established goals for 2025
Waste
Energy
Water
Safety & Wellness
Materials
Suppliers & Products
Some Additional Companies Adopted TNS
ABB
Alcoa
Canon
Carlsberg
Coca Cola Italy
Dow
Electrolux
Nokia
Panasonic
Philips
Scandic Hotels
Tetra Pak
Volvo
WWF
Early Strategies Leading to Sustainability
1973 OPEC embargo and U.S. CAFÉ standards
1987 U.N. World Commission on Environment and Development
Lean manufacturing
Eco-efficient or Eco-effective
Fuel efficiency
Computing efficiency
More durable brake pads
Increase polymer recycling
Reduce sewage effluent
More Efficient Products
Clocks & Watches
Leveraging Electrical Demand
Cradle to Cradle – 5 Step System
1. Get Free of Known Undesirable Substances
2. Follow Informed Personal Preferences
3. Creating a “Passive-Positive” List
4. Activate the Positive List
5. Reinvention
