Go-to guidance for designing, implementing, and managing effective sustainability programs and their management systems
Moving past vague concepts, buzzword overloads, superficial efforts, and flavor-of-the-month misdirections, Sustainability Programs presents a pragmatic, step-by-step approach to creating and managing adaptable, organization-wide sustainability programs to achieve People, Planet, and Profit (3P) objectives with least cost, effort, and risk. Key steps covered in this book include reaching a programmatic Go decision, developing sustainability policies, designing an organizational framework, defining the most pressing sustainability needs, and cascading 3P goals, tactics, targets, and initiatives into business units, functions, and departments to create new capabilities and improve performance.
By following the principles and practices in this book, any organization can better achieve sustainabilitys full promise of social responsibility, environmental stewardship, and financial performance. Written by authors with a wealth of practitioner experience in the field, Sustainability Programs explores topics including:
Creating social, environmental, and financial strategies, tactics, targets, and initiatives that create new capabilities and resolve 3P performance issues Avoiding ad hoc projects that fail to address critical sustainability issues, wasting valuable resources and squandering competitive advantages Overcoming technical professionals lack of business management experience and helping management professionals understand sustainabilitys benefits and intricacies Understanding sustainability through the management lenses of risk reduction, improved efficiencies through eradication of wastes, increased revenues via innovation, and enhanced competitive advantages fueled by greenwash-free transparency. Responding to the demanding data capture, analysis, and reporting challenges of environmental, social, and governance (ESG).
Acknowledging that one size does not fit all, this book delivers individual concepts and methods adaptable across any organizations value chains. It is an essential read for leaders and practitioners working within private and public enterprises of all types and sizes, especially those with 2,000 to 5,000 employees.
Rejecting the notion of sustainability as a burdensome add-on, the book provides a flexible, step-by-step, continuous-improvement 'Sustainable Management System' model that mitigates risks and unlocks new opportunities. The authors emphasize that genuine sustainability within a value chain reduces costs and expenses, increases revenues, and gains competitive advantages through greenwash-free transparency Ultimately, 'Sustainability Programs' presents a clear, how-to-do-it framework for transforming organizations into more responsible, resilient, and financially successful entities. ~Salem Afeworki, MSc, Municipal Energy and Sustainability Services Division Manager, Global 40 Under 40 and Top 100 Environment + Energy Leader
Preface xv
Acknowledgments xxi
Acronyms xxiii
1 Introduction 1
1.1 SMS Best Management Concepts 2
1.2 Target Readers 3
1.3 The Book's Objectives 4
1.4 The Need for This Book 4
1.4.1 Helping Leaders Embrace Sustainability 5
1.4.2 The Business-as-Usual Problem 5
1.4.3 Change is Coming Ready or Not 5
1.4.4 Stumbling Blocks in the Way of Creating a Sustainable Organization 6
1.4.5 The Critical Importance of Sustainability Program Focus 7
1.5 How the Book's Approach Differs from Others 8
1.5.1 An Essential Concept: The PDCA Cycle 9
1.5.2 An Emphasis on Program Evolution 9
1.5.3 An Emphasis on Change Management 9
1.5.4 Emphasis on Adaptability 10
1.5.5 Emphasis on Integration 10
1.6 When Can Measurable Progress Be Expected? 11
1.7 Notes about Industry Standards and Government Regulations 12
1.8 A Risk to Sustainability Program Success 13
1.9 Consequences of Failing to Act 14
1.10 Advice for Leaders, Small Organizations, and Aspiring Sustainability
Practitioners 14
1.10.1 There is No Such Thing as Overnight Success 15
1.10.2 Sustainability Transformations are a Team Sport 15
1.10.3 Learn 15
1.10.4 The Book's Glossary 16
1.10.5 One Size Does Not Fit All 16
1.10.6 Different Readers Need Different Information 17
1.10.7 Take One
Chapter at a Time 17
1.11
Chapter Takeaways 17
1.12 Further Reading 21
1.12.1 The Volkswagen Emissions Scandal 21
1.12.2 Guidance: Making Environmental Claims on Goods and Services 22
1.12.3 The Triple Play: Growth, Profit, and Sustainability 23
1.12.4 The Visionary CEO's Guide to Sustainability 24
1.12.5 Beyond Checking the Box: How to Create Business Value with Embedded
Sustainability 25
1.12.6 The Burden of Proof for Corporate Sustainability is Too High 25
1.12.7 General Dynamics Zero Waste Program 26
2 Essential Sustainability Management System Concepts 27
2.1 The Relationships Between Organizational Structure, Performance, and
Culture 27
2.2 Key Concepts 29
2.3 Management Perspectives on Building an Effective Sustainability Program
30
2.4
Chapter Takeaways 33
2.5 Further Reading 33
2.5.1 ESG Momentum: Seven Reported Traits That Set Organizations Apart 34
2.5.2 Ten Characteristics of the World's Best Corporate Sustainability
Programs 34
2.5.3 How to Tell if Your Business Model is Truly Sustainable 35
3 The Importance of Change Management 37
3.1 Structure, Behavior, Performance, and Culture 37
3.2 A Change Management Appendix 38
3.3
Chapter Takeaways 39
3.4 Further Reading 40
3.4.1 Ready, Set, Go, and Keep Going: Why Speed is Key to a Successful
Transformation 40
3.4.2 Why 'Change Management' is Essential for Your Sustainable Ambitions:
Three Pillars: From Sustainability Ambitions to Sustainable Results 40
3.4.3 Change Management for Sustainability 41
3.4.4 Deloitte Leads Way on Employee Upskilling in Sustainability 41
4 Sustainability Management System Design Considerations 43
4.1 Cautionary Notes Regarding SMS Design Flexibility 44
4.2 A Format for Answering SMS Design Questions 44
4.3 High-level System Plan Phase: SMS Initiation 46
4.3.1 Create the SMS and Assure Executive Buy-In 46
4.3.2 Create the SMS's Shared Governance Function 46
4.3.3 Create an Iterative Process to Define Near- and Long-term
Sustainability Priorities 47
4.3.4 Create a Transparency Process to Monitor, Assess, and Report
Sustainability Program Performance 47
4.3.5 Define the SMS Implementation Process 47
4.4 Operations-level Plan Phase: SMS Administration 47
4.5 Operations-level Do-and-Check Phase: Capability Creation and Performance
Improvement 48
4.5.1 Create a Time-constrained Process to Design and Successfully Complete
Specific Projects 48
4.5.2 Create Quarterly Processes to Evaluate Projects 48
4.6 Operations and High-level Act Phase: SMS Enhancement 48
4.6.1 Create Processes to Improve the SMS 48
4.7 Some Additional Thoughts on Change Management 49
4.8 Sustainability Software Applications and SMS Documentation Boilerplate
49
4.9
Chapter Takeaways 50
4.10 Further Reading 51
4.10.1 12 Steps to Start Your Corporate Sustainability Program: A Guide to
Help You Get Your Company's Sustainability Program off the Ground 51
4.10.2 The Importance of Sustainability Metrics to Sustainability Management
52
4.10.3 The Current State of Advanced Information Technology Applications for
Sustainability 53
5 The Sustainability Program Go-Decision and Policy Development 55
5.1 The Business Case for Sustainability 55
5.2 Organizational Change Considerations 57
5.3 The Utility of ISO and Other Management System Standards 58
5.4 The "Go-Decision" to Create the Sustainability Program 59
5.5 The Overarching Sustainability Policy 60
5.6 Relationships Between Sustainability Policy and Mission, Vision, and
Values Statements 62
5.7
Chapter Takeaways 63
5.8 Further Reading 64
5.8.1 Making the Business Case for Sustainability 64
5.8.2 Business Policy Definition and Features 65
5.8.3 ISO Handbook: The Integrated Use of Management System Standards 66
6 A Model Sustainability Management System Organization Structure 67
6.1 The SMS's Organization Structure 67
6.2 Leadership Roles in the SMS 69
6.2.1 SMS Champion 70
6.2.2 Board of Directors and Its Sustainability Committee 71
6.2.3 Chief Executive Officer 71
6.2.4 Sustainability Management System Oversight Group 72
6.3 Support Roles for the Sustainability Management System 75
6.3.1 Organizational Planning, Finance, and Accounting 75
6.3.2 Decision Support 75
6.3.3 Information Systems 75
6.3.4 Legal Services 76
6.3.5 Human Resources 76
6.3.6 Environmental, Health, and Safety 76
6.3.7 Performance Improvement 77
6.3.8 Facilities 77
6.3.9 Public Relations and Marketing 77
6.4 The Capability Creation and Performance Improvement Roles in the Sms 78
6.4.1 Sustainability Specialty Teams 79
6.4.2 Ad Hoc Project Teams 81
6.5
Chapter Takeaways 82
6.6 Further Reading 83
6.6.1 How to Build Effective Sustainability Governance Structures 83
6.6.2 The Evolving Role of Chief Sustainability Officers 84
6.6.3 Verizon Task Force on Climate-Related Financial Disclosures Report 86
6.6.4 GE HealthCare 2022 Sustainability Report 86
6.6.5 Walmart Environmental, Social, and Governance Highlights FY 2023
and Various Corporate Website Pages 87
7 The Sustainability Management System's Initial Needs Assessment 89
7.1 Define the Topical Scope and Organizational Scale of the SMS 89
7.2 The First Step in Defining an SMS's Strategic Goals, Tactical Objectives
and Targets, and Initiatives 90
7.3 The Use of Outside Experts to Conduct an SMS Needs Assessment 91
7.4 An Approach to an Initial SWOT Analysis 92
7.5 Who Conducts the SWOT Analysis? 92
7.6 Preparing SSTs for Their SWOT Analyses 97
7.7 The SWOT Analysis Process 97
7.8 Some Sustainability Ideas are Better Than Others: Prioritizing SWOT
Findings 98
7.9 Aggregating, Reviewing, and Approving the SWOT Analysis Results 101
7.10 The Next SMS Planning Steps 102
7.11
Chapter Takeaways 103
7.12 Further Reading 103
7.12.1 Walmart Environmental, Social, and Governance Highlights FY 2023
and Various Corporate Website Pages 104
7.12.2 GE HealthCare 2022 Sustainability Report 104
8 Define the Sustainability Management System's Strategic Goals 107
8.1 Essential Concepts in the Cascading Process 109
8.1.1 Strategic Goals 110
8.1.2 Tactical Objectives 111
8.1.3 Organization-level Unit, Function, and Department-level Initiatives
and Projects 111
8.2 Converting Prioritized OFIs into Strategic Sustainability Goals 112
8.3 Performance Breakthrough Goals 114
8.4 Frequency of Defining and Updating Strategic Goals 115
8.5 Future Needs Assessments and Strategy Development 115
8.6
Chapter Takeaways 116
8.7 Further Reading 116
8.7.1 Johnson & Johnson Health for Humanity 2025 Goals 116
9 Define the Sustainability Management System's Tactical Objectives and
Targets 119
9.1 A Deeper Dive into the Linkage Concept 119
9.2 A Process for Converting Strategic Goals into Tactical Objectives and
Targets 121
9.3 SMS Oversight Group, Sustainability Specialty Teams, and Other Personnel
Roles 123
9.4 Examples of Tactics 124
9.5 Refining the List of Tactical Objectives and Targets 125
9.6
Chapter Takeaways 127
9.7 Further Reading 128
9.7.1 The Boeing Company Sustainable Aerospace Together: 2023
Sustainability Report 128
10 Capability Creation and Performance Improvement Initiatives 131
10.1 Accountability Assignments 134
10.1.1 SMS Incentive Programs 136
10.1.2 Accountability Tracking 136
10.2 Project Design 137
10.3 Requests for Additional Project Resources 138
10.4 Milestone Progress Reports 139
10.5 Assistance in Defining Root Causes and Corrective Actions 140
10.6 End-of-Project and Multi-Quarter-Project Assessments 141
10.6.1 Unsuccessful Project Considerations 142
10.6.2 End-of-Fiscal-Quarter Project Reports and Reviews 142
10.7 Restart the Quarterly SMS Improvement Cycle 144
10.8
Chapter Takeaways 145
10.9 Further Reading 146
10.9.1 Microsoft 2022 Environmental Sustainability Report 146
10.9.2 Mattel 2022 Citizenship Report 147
11 Annual Administrative Assessment and Improvement of the Sms 149
11.1 The Annual SMS Administrative Assessment 150
11.2 Internal and External Assessments, Inspections, Audits, and Surveys
152
11.2.1 External Assessments, Inspections, and Audits 152
11.2.2 Internal Inspections, Audits, and Assessments 153
11.3 The Critical Importance of the SMS Check Function in Supply Chain
Management 154
11.4
Chapter Takeaways 154
11.5 Further Reading 155
11.5.1 The Teck Resources Limited Red Dog Mine Management System Review
Processes 155
11.5.2 Perdue Farms Child-labor Case: Subcontractor's Alleged Violations of
Child-labor Laws 157
Appendix A Origins and Evolution of the SMS Model 161
A.1 Introduction: Where We Have Been and Where We Are 161
A.2 In the Beginning: The 1960s and 1970s 162
A.3 Quality Assurance Morphs into CI Organizational Management Systems The
1980s 162
A.4 CI Management Systems Become Green: The 1990s 163
A.5 Time Out for Reflection in the 1990s 164
A.6 The 21st Century Part 1: CI Management Concepts Applied in a Tough
Environment 165
A.7 The 21st Century Part 2: Getting Greener 166
A.8 The 21st Century Part 3: Those Who Can Also Teach 166
A.9 The Evolved Sustainability Management System Model 167
Appendix B Essential Change Management Concepts 169
B. 1 Overview of Change Management 169
B. 2 Change Management Success and Failure Factors 170
B. 3 Schools of Thought within Change Management 171
B. 4 Essential Change Management Concepts 172
B. 5 The Role of a Change Agent 173
B. 6 Change Agent Dos and Don'ts 174
B. 7 Preparations for Change 176
B.7. 1 A Basic Change Process 176
B.7. 2 Communications Planning 177
B.7. 3 Change Readiness Assessments 179
B.7. 4 Readiness Assessment Data Acquisition 180
B. 8 Anticipating and Managing Obstructions 180
B.8. 1 The Root Causes of Change Resistance 181
B.8. 2 Personnel Dispositions Toward Workplace Engagement 181
B.8. 3 Types of Change Resistance 182
B.8. 4 Managing the TANSTAAFL Dilemma 183
B.8. 5 Leadership Shortcomings That Lead to Obstructionist Behaviors 184
B.8. 6 Methods for Overcoming Resistance in Preferred Order 184
B. 9 Institutionalizing Change 185
B. 10 Closing Thoughts on Change Management 186
Appendix c Sustainability Learning and Information Resources 189
C. 1 The Need for Sustainability Education, Instruction, and Training 190
C. 2 Types of Sustainability Knowledge Transfer Offerings 192
C. 3 Sustainability-themed Master of Business Administration Degree Programs
193
C. 4 Sustainability-themed Professional Certificate and Accreditation
Programs 195
C.4. 1 University Certificate Programs 196
C.4. 2 General Certifications 196
C.4. 3 Reporting Certifications 196
C.. 4 Green Building Certifications 196
C.4. 5 Operations in Built Environments Certifications 197
C.4. 6 ESG and Sustainable Finance Certifications 197
C.4. 7 Governance and Risk Certifications 197
C.4. 8 Urban and Infrastructure Certifications 197
C.4. 9 Other Specialty Certifications 198
C. 5 Sustainability-themed Short Courses and Other Resources 198
C.5. 1 On-Demand Online Short Courses Provided by Universities and
Nonprofits 199
C.5. 2 Live Online Short Courses Provided by Private Sector Organizations
199
C.5. 3 Economics, Finance, and Accounting Learning Resources Provided by
Nonprofits 200
C. 6 Management-themed Learning Resources 200
C.6. 1 Project Management 200
C.6. 2 Root Cause Analysis 201
C.6. 3 ISO Management Systems 201
C. 7 Online Sustainability Libraries and Other Information Resources 201
C.7. 1 General Information 201
C.7. 2 Green Living 202
C.7. 3 Environmental Stewardship and Social Responsibility 202
C.7. 4 Built Environment, Energy, and Technology 203
C.7. 5 Sustainability in Business and Government 203
Appendix d Special Considerations Regarding ISO Management System Standards
205
Appendix E Examples of Project Planning Worksheets 207
E.1 Project Summary Worksheet 208
E. 2 Task Description Worksheet 208
E. 3 Project Schedule Worksheet 212
E. 4 Project Budget Worksheet 212
Appendix F An Advanced Needs Assessment Method: Life Cycle Assessment 217
F. 1 Introduction 217
F. 2 What is a Life Cycle Assessment? 218
F. 3 The Life Cycle Perspective 219
F. 4 Key Environmental Assessment and Industrial Engineering Ideas in Lca
220
F. 5 Simplicity is a Virtue with LCA 222
F. 6 Scoping a Life Cycle Assessment 222
F. 7 Impact Assessment 224
F.7. 1 What Impacts are in an LCA And What They Should Not Be 224
F.7. 2 Adverse Impact Characteristics 226
F.7. 3 Impact Assessment Steps 227
F.7. 4 Prescription of Obviation and Mitigation Measures 228
F. 8 Inclusion of LCA Findings and Recommendations in an SMS 228
Glossary 229
Biographies 241
References 245
Index 251
William Borges has directed and participated in 100+ sustainability and environmental management projects. His work includes restructuring departments during the financial turnaround of an eventual Malcolm Baldrige National Quality Award winner in Silicon Valley, designing and introducing one of the first environmental management systems (EMS) at a United States military base, and initiating an EMS consulting practice at a major research institute. He has also designed and taught professional development and university-level sustainability courses.
John Grosskopf has helped hundreds of public and private organizations worldwide dramatically improve their environmental, health, and safety (EHS), security, and sustainability performance while simultaneously reducing their costs, risks, and impacts. He was a principal architect of General Dynamics pioneering EMS and its Zero-Discharge program. He is a management systems innovator that has advanced systematic and systemic EHS and sustainability management practices to help organizations better address climate change threats, ESG practices, and marketplace competitiveness.
