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Sustainability Management Planning:

Creation and Implementation

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Outlining the ProcessVital mileposts along the journey

• Where to start• Establishing clear objectives, scope

and limits• Infrastructure that enables

sustainability• Measuring progress• Assuring on-going progress -

Training and communication• Resources to assist• Case Studies of Success

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Where to Start…and WhySimilar to infusing Total Quality Management in organizations

• Management Support• Self-initiated internal champions• Customers/Key clients• Public Image

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Understand & Define Objectives, Scope & LimitsConsider previous experience and any existing activities when defining

Be realistic…

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Elements of a Sustainability ProgramInfrastructure and a multi-year “map” in order to achieve sustainability targets

• Sustainability Team/Committee• Sustainability Policy Signed by Top

Management• Written Management Plan (SMP)• Implementation Strategy• Metrics• Communication Plan

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Contents of the Sustainability PlanUpdate regularly to reflect changes in business climate

• Vision & Guiding Principals• Management Commitment

– Policies & Procedures• Focus Areas• Green House Gas Emissions (GHG)• Building Footprint• Transport

– Product & Employee Travel• Water, Solid Waste, Land Use• Education & Communication• Sustainability Opportunities

– Metrics & Projects

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Assure the Triple Bottom Line Throughout Supply ChainInclude activities in Sustainability Plan that address ENTIRE supply chain

• Social Policies, e.g. wage, child labor

• Conflict minerals• Fair trade sources

• Reduction Scope I,II,III Emissions• Waste reduction• Reduction water usage

• Sustainable procurement

• Sustainable Branding• Optimizing operations

Sustainability Analysis for a ManufacturerImproving the profit and sustainability of products and services

Lowering energy use and carbon footprint per unit of production in each of these components will increase profitability

Product Processing

Plant

Ingredients

Packaging

Consumables

Scope 3

Finished Product

FOB Warehouse

Purchased Electricity

Organization Boundary

Waste

Delivered Product

Purchased Water

Scope 2

Scope 3

Scope 3

Scope 1

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Branding and SustainabilityHost of products being branded as sustainable

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Implementing Sustainability PlansEarly “wins” create momentum

Retu

rn o

n In

vest

men

t

Hig

hLo

w

Difficulty of Implementation

Low High

Phase I

Phase II Phase III

Selecting Sustainable Projects

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Developing Appropriate MetricsVital to the long term success of a program

• Develop a metrics and data gathering plan– 12 month calendar based– Baseline– Interim (monthly, quarterly)– Annual savings– Sunset – NORMALIZE the data

Landfill WasteGlassPaperCorrugatedPlasticsWrappersCompostMetalsElectronicsBatteriesFlurescent Bulbs

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Training & Communication are KEY to successOn-going throughout your organization, community, supply chain

Address Multi-Stakeholders in Organization, Community, Supply Chain:

1. Employees

2. Contractors

3. Vendors/Suppliers

4. Potential & Current Customers

5. Community

6. Regulators

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Resources to AssistUseful whether starting or have existing Sustainability Program

Resource Tool Kits Access to Funding

Department Commerce & Economic Opportunity (DCEO)

X

Utilities X

EPA X

DOE X

USDA X

Illinois Sustainable Technology Center (ISTC)

X X

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Impact of Technical Assistance Program on IllinoisSupporting Illinois’ manufacturing base

Benefits to Illinois:

• Annual savings: +$900,000• Annual reduction: 12 MTCO2

• Annual kWh savings: 9,000,000• Companies visited: 172

2013 Figures

Strategic SustainabilityMeeting the need to meet the “Triple Bottom Line”

• Triple Bottom Line: People, Planet, Profits• Organizations driving sustainability in supply chains:

– Unilever: Double size while reducing environmental impacts through sustainable, profitable, volume growth

– Wal-Mart: Reduce 20 million metric tons of greenhouse gas emissions from its global supply chain by 2015

• Example of metrics being developed regional and globally:– The Greenhouse Gas Protocol Initiative

http://www.ghgprotocol.org/standards/product-and-supply-chain-standard

– Eco Index (product life cycle for outdoor equipment)http://www.ecoindexbeta.org/

• ISTC approach: focus on enhancing sustainability AND profitability– Reduce both the carbon footprint (i.e. CO2 footprint) AND the production

cost of the delivered product

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CASE STUDIESReaping the benefits of becoming more sustainable

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Results from Organizations that ACT on SustainabilityBased on results from 5,300 executives from 118 countries

Attributes of organizations that thoroughly address sustainability issues share the following traits:

• More than 90% have a sustainability strategy• 70% have sustainability on their top management agenda• 69% have developed a sustainability business case• Focus on five business fronts: sustainability strategy,

business case, measurement, business model innovation, and leadership commitment

• 60% have indicated increase in profits due to addressing sustainability

From: “Sustainability’s Next Frontier”, MIT Sloan Management Review, December 2013

Characterize Analyze Implement Evaluate

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We conduct waste audits and assist with materials management planning, supply chain optimization, and stakeholder engagement.Our Resources:• Waste characterization mobile, for sorting in all

locations/conditions • ASTM standard methodology• 2000 lb-per-day sort capacity• Region-wide database of recycling service

providers• Access to University of Illinois expertise,

including economic analysis, product design, and sustainable behavior change

• 30 years of materials management experience

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We leverage nation-wide connections to provide Illinois organizations and communities with the latest material recovery tools and techniques.Our core team’s credentials include:• Deb Jacobson

– Air & Waste Management Association, Regional Board– Illinois Green Business Association, Advisory Board– Sustainable Green Printing Partnership, Auditor– Printer’s Nat’l Environmental Assistance Center, Director– Chicagoland Chamber of Commerce, Sustainability Forum

• John Mulrow– IL Food Scrap Coalition, Market Development Committee– Plant Chicago, Board of Directors– McDonald’s Best of Green, California Composting Project

• Shantanu Pai– Solid Waste Education Center – UW Stevens Point– US Zero Waste Business Council, Member

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Measurable results

Chicago Department of Aviation Case Study

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Scale-up of compost program

From carts to compactors

Front-of-house collection rollout

Bin and signage improvement

Catalyze compost route density

Creation of Green Enterprise Zone

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Three Levels of Service Available through ISTCOptions to begin the process

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Service Silver Gold Platinum

Waste audits X X X

Review / develop sustainability plan X X

Triple Bottom Line Analysis X X

Supply Chain Analysis X

• Retained based services• Waste audits on a quarterly basis using statistical process control type analysis• Compare sustainability plans to comparable for market sector• Triple bottom line analysis reviews items including: conflict minerals, fair trade

sources, energy usage, carbon footprint, water usage, branding, procurement• Supply chain analysis includes review of relevant partners within supply chain

and comparison to any required sustainability “score cards” commonly being used in market sectors

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Illinois Governor’s Sustainability AwardRecognizing sustainability related achievements of organizations and communities

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Next StepsISTC assistance

Whether just starting to infuse sustainability or interest in a review of an existing program, contact:

Deb Jacobson1010 Jorie Boulevard

Suite 338Oak Brook, IL 60523

djacobso@illinois.edu630.472.5019