launching sustainability programs

Launching Sustainability Programs

Bruce Starcher

Many Points of View

Sustainability

Corporate Social Responsibility

Corporate Responsibility

Environmental, Health and Safety

Corporate Citizenship

Corporate Conscience

Sustainable Responsible Business

Public Spirit

Corporate Sustainability

Sustainable Development Environmental

Social Responsibility

Responsible Business

Social

Sustainability: how it all startsBig Bang

Greening the desert

Shareholder activism

Board / CEO mandate

NGO action

Bottoms up

Employee Passion

Maverick

80%

20%

One Company – How Many Tribes

The Sustainability Program

Greening the desert

Big Bang

BusinessCase

UNDER THE RADAR

COALITION BUILDING

BUSINESS CASE

SPONSORSHIP

STAKEHOLDER ANALYSIS

PROJECT

PROJECTS

Sustainability MANAGEMENT SYSTEM

BUNDLE OF PROJECTS

EUPHORIA

INTEGRATED

ScaleYears

HOW WE DO THINGS

ALIGNMENT

End

ROADBLOCKS

Program Success Factors

Leadership

Leader who can articulate and sell the vision Business CaseEvolve the plan , track assumptions and manage them as the plan evolves

Team builder who can build bridges across organizations Customer Understanding Yes!

Explicit values and operating principles

Team

Knowledgeable of Sustainability StrategyDevelop a clear strategy; evolve it as the market and your understanding changes

Mix of experiences

Dedicated resources Structure Report to someone who has direct access to the CEO

Sponsorship

Strong, committed sponsors

Hire outside experts to fill in knowledge gaps Success Have a clear observable goal

Changing sponsors is a major red flag

Funding

Use a stage gate process, start small and add resources only as needed. Yet never forget … Companies are in business to

make a profit!

Keep it as small as possible for as long as possible

Controls Have clear proof points to justify continued funding

Sustainability Value DriversA number of studies have been conducted to demonstrate the link between Sustainability programs and

improved financial performance, as measured by stock price.

= Market Capitalization

•Revenue Increased competitive positionAccess to marketsWin bidsIncreased loyaltyRetain business

•Cost Increased efficienciesLess materialLess wasteLower energy use

•Brand Increased brand equity Consumer perceptionEmotional connection

•Employees Increased employee engagementIncreased productivityRetentionHiring

•Financing Lower cost of capital Access to SRI fundsPass financial institution filter

•Risk Lower risk

Supplier riskProduct riskFacility riskRegulatory riskCompetitive riskReputational risk

Sustainability Landscape

Economic Environmental Social Governance

Financial PerformanceEconomic Benefit

Supply Chain ResponsibilityManufacturing Agreements, Supplier Code of Conduct, Supplier Audits, Supplier SRE Training, Transparency, NGO Collaboration, Verification and AssuranceMinimal WasteReuse, Recycle, Repair, Rethink, Recover, Compost, Producer ResponsibilityEnvironmental SustainabilityMarketing Communications, Operations, Manufacturing, Logistics, Product Use, EH&S, Resource EfficiencyClimate and EnergyScope 1, Scope 2, Scope 3Sustainable DesignCompliance, Design for the Environment, Lifecycle Analysis (LCA), Accessibility, Zero Waste System

EmployeesDiversity and Inclusion, Balancing work-Life, People Development and Advancement, Employee and Global Citizenship, Employee Engagement, Compensation and Benefits, Promoting Wellness, Health and Safety.Human RightsOpen door policies, Diversity Policies, Human Rights and Labor Policies, Standards of Business Conduct.Supply Chain ResponsibilitySustainable Sourcing, Supplier Social Responsibility, NGO Collaboration, Transparency, Supplier DiversityCommunityEmployee Volunteerism, Corporate Philanthropy, Community Engagement, Economic ImpactPrivacy

Metrics and MeasurementChange ManagementSustainability AssessmentsSustainability Program Management

How to look at Sustainability

People Responsible Product Climate & Energy Minimal Waste Purpose Governance

Communities Product Carbon Management Waste to Landfill Ethics Metrics & Measurement

• Employee Volunteering• Community

Engagement• Corporate Philanthropy• Economic Impact

• Legal• Safe• Environmental• Sustainable• Ethical

• Scope 1• Scope 2• Scope 3

• Sustainability Metrics• Sustainability

Measurement

Employees Process Waste to Water Values driven leadership Sustainability Assessments

• Diversity & Inclusion• Employee Engagement• Health Safety &

Wellness• Human Rights• Total Rewards• People Development• Work Life Programs

• Environmental Marketing Strategy

• Product Material Audit• Supplier Management• Design for Environment• Lifecycle Analysis

• Sustainability Self-Audit• SCORE assessment

Supply Chain Waste to Air Change Management

• Integrate Sustainability in Sourcing

• Supplier Social and Environmental Responsibility

• Transparency• Supplier Diversity

• Communications• Training

Sustainability Program Management

Sustainability Maturity

Defensive Compliance Managerial Strategic Cooperative

Pre-2006 2006 - 2010 2011 - 2015 2015 - 2018 2018+

Employee Engagement None I’m aware of the message I understand the message I believe I am committed to act

Focus Deny practices, outcomes or responsibilities

Adopt a policy-based compliance approach as a

cost of doing business

Embed the societal issue into core management

processes Integrate the societal issue

into core business processes Connecting externally with

organizations to drive broader change

Activities No ActionOne or two projects

Green-washNo strategy

Bundle of Projects Management System Full Integration

Embedded No No Business ProcessesLeadership and

Management Processes, Strategy, Employee

Engagement

Strategy, Financing, Reputation, Brand

The “why”To defend against attacks to their reputation that in the short term could affect sales, recruitment,

productivity, and the brand.

To mitigate the erosion of economic value in the

medium term because of ongoing reputation and

litigation risks

To mitigate the erosion of economic value in the medium term and to

achieve longer-term gains buy integrating

responsible business practices into their daily

operations.

To enhance economic value in the long term and to gain

first mover advantage by aligning strategy and process innovations with the societal

issue

To enhance long term economic value by

overcoming any first mover disadvantages and to realize

gains through collective action.

Source: Simon Zadek, “The Path to Corporate Responsibility”

Sustainability Maturity Models

Sustainability EvolutionDefensive Compliance Managerial Strategic Cooperative

Pre-2006 2006 - 2010 2011 – 2015 2015 - 2018 2018+

Responsible Product

- Packaging- Non compliant chemicals- Supplier Sustainability Compliance- Green Products

- Green Product Portfolio - Sustainable Packaging - Responsible Supply Chain - Lifecycle Analysis - PVC substitution - Ongoing Product Material Compliance

- Full understanding of all product inputs, components, processes and their impacts. - Detailed plan(s) in place to reduce or eliminate impacts, to become resource "neutral" via upcycling, alliances to create industrial nutrients (i.e. waste= food). Minimizing transport; packaging, etc.

- Continuation and extension of strategic work. Industry leadership in all product categories re: methods, R&D, manufacturing, sourcing.- Mentorship and strategic alliances outside of industry to spread knowledge.

Climate and Energy

- Carbon Management• Scope1• Scope 2• Scope 3

- Carbon Management• Scope1• Scope 2• Scope 3

- Deep understanding of the environmental impacts of ALL aspects of the enterprise by all employees AND all company activities analyzed and guided by this understanding.- Sharing of knowledge and active support of science and research institutions working in these areas.


Pre-2006 2006 - 2010 2011 – 2015 2015 - 2018 2018+

Minimal Waste

- General Office Printing

- Site Recycling - General Office Printing - Solid Waste Reduction

- Process Redesign- 100% take back packaging guaranty, including agreements with suppliers re: packaging types, materials and transport strategy.Incentive plan(s) to actively engage customers in ACCO's zero waste initiative.

- Approaching or achieved “Minimal waste" goal...and continuing to make adjustments to perpetuate it.- Active participation in multi-industry coaltions re: zero waste strategies around the world.

People

- Purpose- Employee Engagement- Diversity- Compensation and benefits- People development- Work-Life programs- Health, safety and wellness

- Employee Engagement- Community Engagement- Integrate Sustainability metrics in MIP and MBO objectives- Introduction of cash and non-cash (e.g. awards/recognition, time off, etc.) incentives for employee ideas or projects.- Partnering with schools (elementary through university) to develop brand awareness AND environmental/social goals.- Partnering with non-profits and community based NGOs to provide products and raise awareness of company mission & goals.

- Continuation and expansion of strategic era plans. Employee generated ideas have resulted in spin-off businesses or organizations that work with ACCO.


Pre-2006 2006 - 2010 2011 – 2015 2015 - 2018 2018+

Governance

- Environmental Business Case- Customer Sustainability risk profile and requirement- Sustainability Baseline audit- Embed Sustainability in key processes- Customer Request process and structure

- Align around a long term Sustainability roadmap- Sustainability External Reporting- Sustainability Communications- Sustainability Training- Establish Sustainability metrics, measurement and reporting infrastructure- Public goals- Link values to behaviors and performance appraisals- Develop Company level Sustainability strategy and integrate into corporate strategy- Build external network among NGOs, leading Sustainability companies and other key sustainability players

- Develop Company level Sustainability strategy and integrate into corporate strategy- Integrate Sustainability in ACCO’s Culture.- Increased investment by SRI and institutional investors as a result of Sustainability accomplishments and goals.- Well established e-learning systems and other internal/cultural mechanisms allow budget resources to be freed up for other uses.

- Corporate Governance- Access to SRI funding- Management compensation includes Sustainability component.-External Networks, Working Groups, External Collaboration- All Board members have familiarity and /or expertise with Sustainability goals and issues.- Company and shareholders are completely and actively aligned with regard to ACCO's Sustainability agenda and goals.- Company is leading by example and supporting political and social policies that further environmental and social practices and initiatives.- Compensation of all employees AND selection of all suppliers, contractors and vendors have mandatory Sustainability goal requirements.

A balanced approach to projects

Tangible

Intangible

Short Term Long Term

1 2

43

Change Management Models

Broad Based Change – Greening the Desert

• Identify gap

• Create knowledge and build expertise

• Share knowledge and expertise with trusted network

• Get input and refine knowledge

• Add value through application of knowledge and expertise

• When confident, go outside trusted network and share capability and expertise

• Build coalition, find sponsors and Mentor of Mavericks (MOMs)

• Start lower in the organization, build support and gain access to more senior managers; keep moving up the organizational structure

• Grow share of personal activity

• Strive for the establishment of a permanent position

Sustainability has to be made tangible

To be among the industry leaders in Corporate Social Responsibility

ConsumerCustomer

Product

Packaging

Post Sales

Category Specific Attributes

Minimal Waste Minimal Material WasteMinimal Process WasteReduce, Reuse, Rethink,…

Climate and Energy Carbon ManagementPeople Responsible Supply Chain

CommunityEmployees

Governance Metrics and MeasurementChange ManagementSustainability Program Management

Marketing SupplyChainR&D HR Communi-

cationsFinanceComplianceSales Investor Relations

Objective

Offering

Operations

Functional Strategies

Charac-teristics

Brand

Cost and environmental impact reductions across products and processesStrategy

“ACCO products and solutions offer best in class features and value from

a company committed to sustainability”

Sustainability

Governance

Sustainability Leader Competency Model

Competences

Personal QualitiesPatient Focused Committed

Tenacious Thick Skin PositiveIntuitive Self Aware NetworkerEthical Good Listener Self Effacing

Comfort w/ ambiguity Resilient Pragmatic

Summary

The job of a Sustainability leader is to work towards eliminating the position, to get to the point where Sustainability becomes the way the company operates …

… but there is a lot of work to be done from beginning until you might eventually get to that point …