Tag: Strategic Planning

ESG (Environmental, Social and Governance) is a hot topic. Investors want more reporting and transparency.  Non-financial reporting frameworks expect transparency on issues from climate change to forced labor.  The Board has questions.  And nobody expects it to fade any time soon.

It’s often “all hands on deck.”  But increased activity doesn’t always translate into effectiveness or efficiency.   Even companies that created Chief Sustainability Officer positions years ago are overwhelmed by new requirements, risks and demands.  One poll of over 300 Internal Audit professionals revealed that ESG “lives” in Environmental, Compliance, Investor Relations, or other departments.  There is no consensus on the right home.  Who should lead ESG?  What does “good” look like?  And how will things get done efficiently, effectively, and aligned with business objectives?  Read More

“Sustainability” can be difficult to include in annual budget planning. If you’re lucky enough to have a full-time Sustainability Manager, s/he may have priorities for your company’s 2015 budget. More likely, because Sustainability means so many things to so many stakeholders, s/he has probably overlooked some things. Here are five things that should be in your 2015 Sustainability budget:

Conferences & Education: The Sustainability field continues to evolve at a fast pace. There are many conferences addressing different facets of Sustainability. Conferences fulfill many needs. If you have a line of “green” products or services, you can meet potential customers. You can monitor competitors’ activities. You can network with other Sustainability professionals, perhaps developing collaborative relationships. You can see what’s not out there, and could be an opportunity for your company. There are so many conferences, attending them could be a full-time job. Be discriminating in what you attend, what you exhibit at. Education is available in many forms. Webinars are available on a variety of topics, and many are free. Many groups offer free email lists; www.environmentalleader.com and www.greenbiz.com are two organizations that offer insights on many topics, and occasionally offer free webinars. Several colleges and universities offer Sustainability curricula for working professionals. For example, the University of California at Los Angeles Extension offers a certificate program in Sustainability; some courses are offered online. Conferences and education can keep you informed of trends, opportunities – even mistakes being made by others – and help you plan your company’s business strategy.

Communications and Reporting: Sustainability involves considerable communication. Internal communication is needed to enlist support, convey expectations, and gather Sustainability information. External communications typically takes much more effort. Your company may publish a Sustainability report (typically annually). You probably do other Sustainability communication via product or service bulletins, website information, presentations to industry associations or other groups, social networking, or other means. Your company may need to respond to requests from customers, investors, financial institutions, analysts, or other stakeholders. These requests are rarely consistent with each other. Handling these incoming requests may involve several iterations of communications with these stakeholders. Communications about Sustainability may be “pure Sustainability” communications (as in response to a Sustainability questionnaire), or may be embedded in more general communications (the CEO’s description of the company’s performance and market position to a group of potential investors). The same type of effort is required for all Sustainability communications: understanding the need/ request; drafting responses; verifying accuracy of communications; evaluating communications channels; and measuring effectiveness of communications.

IT Systems & Data Management: As Sustainability programs mature at companies, they involve more and more data. You may collect data on waste reduction, energy efficiency projects, water use reduction efforts, supply chain monitoring programs, community outreach efforts, or any of dozens of other metrics. IT systems and controls developed for tracking sales and inventory may not be suitable for Sustainability data. It is important to have systems and controls to collect and assure the accuracy and reliability of this data. Whether you are using Excel spreadsheets or using Sustainability software, it always pays to devote some resources to ensuring the quality and timely reporting of Sustainability data.

Time: Budget some time for Sustainability – for you, other managers, and all staff. If there is no charge code for employees’ time for Sustainability, it suggests that it’s not important. It also doesn’t give you the opportunity to track just how much time, effort (and cost to your company) that Sustainability efforts really take. This can be the first step in setting priorities, or developing or improving business processes to manage Sustainability.

Resources: Even large corporations enlist support for Sustainability, often for topics where they don’t have in-house expertise. They may also value or require independent perspectives, such as for a greenhouse gas (GHG) emissions inventory audit, or for an audit of their Sustainability reports. Many companies have seen the value of an external “pre-audit”, where they gain the value of independent perspectives, get suggestions for improvement – without committing to an audit report. New issues arise where it is more cost-effective to use external resources. Dodd-Frank includes a provision on due diligence for conflict minerals; California is considering a law requiring due diligence for suppliers who may use forced labor. You may want some help to calibrate your company’s conformance to the Federal Trade Commission’s proposed revisions to the Green Guides. At some time in 2015, you’ll encounter a Sustainability issue where it’s best not to go it alone. Even if it’s a modest budget, set something aside so you can respond as quickly as possible to meet your company’s needs.