Start Here Guide

  • Author Lindsay McIvor, Stephanie Bertels
  • Publisher Network for Business Sustainability
  • Publication date April 2014
  • Type Reports
  • Industry Oil, Gas & Mining
  • Category Managing Corporate Responsibility
  • Discipline Operations Management
  • Language English
  • Link Start-Here-Guide-Final (PDF)
  • Free/Pay for content Free

Sustainability frameworks are useful tools. They provide clarity on risks and responsibilities, and often kick-start a company’s sustainability strategy. But, it can be a challenge to navigate the existing Canadian and international frameworks. In mining, the Prospectors and Developers Association of Canada’s e3 Plus, the Mining Association of Canada’s Towards Sustainable Mining, ICMM’s Sustainable Development Framework, the UN Global Compact and the IFC’s Performance Standards make up the go-to sustainability frameworks.

How can a company know which framework to use and when to use it? What are the specific benefits of aligning your company with one of these frameworks? How can a manager know where to start? The answer? Start here guide.

This Start Here Guide is written for exploration, development and small producing companies (EDSPs). It introduces managers and mining professionals to the sustainability standards, guidelines, frameworks and toolkits that are most relevant to them. Specifically the guide

  • Clarifies external expectations for the environmental and social performance of mining projects
  • Supports efforts to build reputation, benchmark performance and gain access to financing
  • Outlines a step-by-step approach to understanding the most relevant sustainability frameworks
  • It distills the most widely used resources into a easy-to-understand format so managers can achieve sustainability requirements.

A set of topic-specific Quick Sheets, specifically targeted to EDSPs, accompany this guide. Download the Quick Sheets from http://nbs.net/knowledge/start-here-guide/.

Integrating ESG in Private Equity

Integrating ESG in Private Equity

  • Publisher UN Principles for Responsible Investment
  • Publication date April 2014
  • Type Reports
  • Industry Finance
  • Category SRI/Sustainable Finance
  • Discipline Finance
  • Language English
  • Link PRI_IntegratingESGinprivateequity_digital
  • Free/Pay for content Free

This document provides practical guidance on how GPs can develop a framework for the integration of ESG factors within their organisation and investment cycle and points to industry resources and case studies. GPs are encouraged to use the practices and examples presented here as a starting point and adapt them to their organisations and investment styles. PRI GP signatories can use this resource to help implement the types of practices that are consistent with the PRI Reporting Framework.

LPs can also use this guide to understand the different ESG integration practice being implemented in the market, which will in turn facilitate a more informed discussion with their GPs during both fund selection and monitoring.

A supplement of case studies has also been made available, which present more details on the practices described.

The selected case studies cover a range of geographies, investment strategies and GP sizes, and also highlight practices from GPs which are at different stages of ESG integration.

Appendices include (A) an overview of the various industry tools publicly available to help GPs with integration of ESG factors, and (B) resources for further reading.

Over 50 GPs and LPs across the globe were interviewed during the development of this guide and the guidance points presented are reflective of current practice. All quotes measure ESG practices that are highlighted throughout the document have been lifted from these interviews. Please see Appendix D for the list of participating GPs and LPs as well as an explanatory note on the interview selection process.

The Future of Tea– A Hero Crop for 2030

  • Author Ann-Marie Brouder, Simon Billing and Sally Uren
  • Publisher Forum for the Future
  • Publication date February 2014
  • Type Reports
  • Industry Food & Beverage
  • Category Sustainability and the Business Case
  • Stakeholder Engagement
  • Responsible Supply Chain Management
  • Responsible Business in Emerging Markets
  • Language English

The numerous sustainability challenges faced by many industries, including the tea industry, are too big for any one company to address alone; rather they need the co-operation of all parts of the value chain working together. For the first time in history, some of the key players in the tea sector have come together to explore the future for tea in a collaborative project called Tea 2030. They are working jointly to identify the key challenges, forecasting the issues that need to be addressed and combining their knowledge and expertise to deliver new solutions that will overcome the issues facing the sector – creating a shared vision for what the global tea industry can do together to ensure it has a prosperous and sustainable future. They are fully committed to implement this initiative in compliance with all applicable laws.

Led and facilitated by Forum for the Future, the leading global sustainability non-profit, this report presents the challenges and opportunities the tea sector will face in the future, including 4 possible future scenarios for the tea industry. The report marks the end of phase II of Tea 2030 which set out to explore the future for tea and the beginning of the implementation phase of Tea 2030.

Tea 2030 is a global project bringing together some of the key organisations in the global tea industry, including the Ethical Tea Partnership, Fairtrade International, Finlays, IDH – The Sustainable Trade Initiative, Rainforest Alliance, S&D Coffee & Tea, Tata Global Beverages, Twinings, Unilever and Yorkshire Tea. We also thank the International Tea Committee for their support. future-tea-report

Institutional Landscape of CSR in Asia

Corporate Social Responsibility [CSR] and Education for Sustainable Development [ESD] are closely related and complementary initiatives. CSR seeks to develop and expand the effectiveness of business contribution to our society. ESD seeks to provide all students [at all levels of learning] with the skills to incorporate socially responsible practice into their personal and professional lives. As such ESD is, in the long run, a major mechanism for the wide adoption of the responsible business practice. In the Asia Pacific region, developments in CSR and ESD are highly interconnected and interdependent.

This region spreads from Uzbekistan in Central Asia to the tiny Solomon Islands in the Pacific Ocean and includes India, China and Japan and comprises 5 significant sub regions. During 2008 Asia-Pacific Sub-regional ESD Consultations, organised by UNESCO, with the generous contributions of the Japanese Funds in Trust, key issues confronting the region’s effort to be a more socially responsible and sustainable community were identified. These are social (e.g. access to education, peace/conflict, human rights, drug addiction), cultural (cultural heritage, preservation, indigenous knowledge), economic (poverty, food security, urbanization, rural development) and environment barriers (natural disasters, climate change, air pollution, desertification, biodiversity).The recent UNESCO review at the mid point in the  Decade of Education for Sustainable Development notes that in the Asia Pacific region ESD has demonstrated most progress in the formal education system development. The report indicates that there is little government engagement and insufficient government funding for non-formal and informal ESD-awareness raising programmes and initiatives. Formal educational system remains the major place where local student first encounter with CSR and ESD.

There are some good examples of CSR and ESD integration across the region. Thus, in Malaysia, the Regional Centre of Expertise [RCE] for Penang Island and the Northern region of Malaysia has undertaken an extensive base-line study on existing sustainable development learning activities and the organizational capacity of the entities involved. In Australia, the St James Ethics Centre has established ‘the Hub’  as a focus for responsible business practices with view to providing an opportunity for small and medium businesses, as well as larger businesses, to actively practice responsible business approaches and to gain recognition of their efforts. This has resulted in the development of a national register of responsible business practice. In China, the Asia-Pacific Regional University Consortium (RUC) has been established to promote sustainable development education. A Leadership Programme on sustainable development was designed as a collaborative effort of the RUC as a means to provide training for emerging leaders from various backgrounds in the Asia-Pacific region. In Japan, the United Nations University – Institute of Advanced Studies [UNU-IAS]has established a wide ranging program of action covering Biodiplomacy, Ecosystem Services Assessment, Education for Sustainable Development and Governance and Institutional Reform.

These initiatives are having a significant impact across the region. One example is the ProSPER.Net project www.prospernet.ait.asia supported by a consortium of regional universities to build issues of sustainable development and responsible business practice into the post graduate education curriculum. The ProSPER.Net academic and research alliance is an effort of the ESD Programme at UNU-IAS to bring about understanding and delivery of ESD and SD at the postgraduate level.

Sustainability: Thinking Long-Term

Two years ago, a first-year student at Kozminski University (KU) in Warsaw, Poland approached his family’s business in the south of the country with the intent of cutting expenses by reducing wasted electricity – an idea that was initially met with scepticism because it involved tackling a low-end cost. Fortunately, however, the student persisted and the family began switching off all unneeded lights and equipment in the company. What happened next was astonishing. Electricity consumption plunged 77%, thereby saving the business an estimated €28,800 per year and reducing its carbon emissions by 139,000 kilos. Not surprisingly, company managers immediately instigated an energy-saving program that began by investing in motion detectors to ensure that the business’s lights remain on only when needed. Further north, another Kozminski student showed her father how natural light could replace artificial light in his business as well as how the efficiency of the heating and cooling system could be improved. In addition she recommended replacing old electronic equipment with energy efficient alternatives, unplugging electric equipment when not in use, and changing work hours to be more compatible with day-light hours. The combined estimated annual savings totalled €31,751. Get the full review here: http://www.casinovergleich.eu/leovegas-casino

At Kozminski University, this is nothing new. Over the past two years, students at this Poland’s number one business school have shown more than 100 businesses in eleven countries how they can save an estimated total of over $2 million by minimizing waste – a first step toward sustainability (defined as the capacity to continue into the long-term). The driving force behind this achievement is a new introductory course about sustainability, which requires students to think about the problems and costs associated with waste, the spiralling cost of raw materials, problems associated with resource deficits, costs created or exacerbated by poorly designed products and production processes, the costs of climate change (including property damage and crop failure), the costs of unemployment and underemployment, and, in general, the negative financial implications of short-term thinking (for example, imagine if long-term thinking had been applied in the financial industry before the 2008 economic meltdown). When the course ends, students are required to go out and apply the concepts they learned in class (in the form of a written report) as opposed to simply taking an exam or writing an essay.

KU Student Business-Assessment Results (examples)

  • In northern Belarus, a group of Kozminski exchange students worked with an earth-moving equipment company and explained how it could save €10,460 annually by maximizing fuel use.
  • A Ukrainian shoe manufacturer was shown how it could eliminate €19,875 in costs (and 280,000 kilos of carbon emissions in the process) by three transfer students who attended Kozminski University for one semester.
  • In Slovenia, three Kozminski exchange students showed a heavy truck manufacturer how it could save €8,356 every year by minimizing waste.
  • In Warsaw, three Kozminski undergraduates explained to a printing firm how it could cut €20,000 in costs by minimizing office waste.
  • a similar waste assessment conducted by Kozminski students showed a kitchen equipment wholesaler how it could reduce its annual costs by €29,042

Although this program is looked upon favourably by quite a few administrators, it still faces formidable obstacles from mid-range managers that sometimes threaten to shut it down. These obstacles include the same types of arrogance, apathy, and short-term thinking found in businesses. Simply put, to many academics (and managers) remain unimpressed with the subject of sustainability, deeming it too vocational, not academic enough, a fad, or too entrenched in the domain of environmentalism to merit serious inclusion in an academic curriculum. Yet surely, any institute that calls itself a business school must be obliged to examine every aspect of business, not just the traditional subjects it considers worthy of study Hunter Lovins, a recognized giant in the field of sustainable business development, and president of Natural Capitalism Solutions in Eldorado Springs, Colorado (USA), says that only around 150 business schools in the world acknowledge sustainability and waste reduction in their curriculums, rarely going further ‘unless it’s demanded by students’ – which is happening more frequently.

To understand sustainability it is essential to begin by comprehending the big picture – to acknowledge that sustainability is about longevity and to develop an awareness of what that means before analytic thought does its (necessary) reductive work. Studying research based on a limited set of empirical experiences is not enough. The problem with this method is that once a few facts become clear it is tempting to believe they represent an independence all their own and to rest in them and think that they are the foundation of what is being sought. For this reason it is important to note that sustainability embraces the legal, financial, economic, industrial, social, behavioural and environmental arenas – which suggests that there is plenty of room for long-term thinking to play a major role in virtually every business subject currently being taught in business schools. First, however, it is crucial to note that sustainable business activity cannot be accomplished without first understanding the importance of waste minimization. Our Tipp: www.casinovergleich.eu/mr-green-casino

Just as marketing can be broken down into an alliteration (price, product, promotion, etc) to explain its multiple facets (often described as the marketing mix), the same can also be done with sustainability. Obviously, alliterations are never perfect, but the 7-P sustainability model has proven to be effective enough in explaining waste minimization as a first step toward sustainable activity. Briefly, the 7-P’s of sustainability are as follows:

  • Preparation – setting the stage for change (both physically and psychologically) and understanding what the reformer is up against when trying to implement profitable, long-term business practices while accepting the breadth and depth of this subject (e.g.: the financial implications of sustainability and the fact that it is not about being independent).
  • Preservation – encompasses two areas: internal (collecting and displaying real-time measurement) and external (keeping ahead of laws, pending legislation, trends, and developments).
  • Processes – sustainable belief systems, philosophies, business models, and thought patterns that help match a business with customer demands, core capabilities, and best practices.
  • People – accepting the importance of training and education and working diligently to avoid the wasting of people, specifically: employees (who seek security and motivation), stakeholders (who want a return on their investment), customers (who want safe, value-laden products), and the world community – including the two-thirds of humanity who are currently left out of the global economic loop (who desire jobs and inclusion) and who represent an economic force all their own.
  • Place – the buildings and places where work is performed and/or products are sold.
  • Product – ensuring that goods and services are free from unnecessary waste (‘non-product’) and toxins – and designed so that the materials, energy, and manpower that comprise them (and their packaging) are treated as investments and continuously reused.
  • Production – the physical, mechanical, biological, and chemical processes used to transform raw materials into products or services – and transport them

So what does all this mean? From a business angle it can be argued that sustainability is about reducing expenses – including future expenses – in every conceivable form so as to facilitate longevity and competitiveness. Obviously, sustainability is too broad a subject to explain in one article, however, to learn more, the European Foundation of Management Development is publishing a free book titled The Sustainable Business, which will be available as a free PDF download. For readers desiring a printed hard copy, the book can also be ordered online. Both formats will be released in June 2010 to help promote wealth creation, facilitate job growth, and promote resource efficiency (i.e.: reduce environmental degradation). Please contact Business in Society Gateway team for more details. More uner: www.casinovergleich.eu.

Developing Tomorrow’s Global Leader

76% of CEOs and senior executives polled in a global survey conducted during the height of the 2008 financial crisis believe that it is important that senior executives have the necessary knowledge and skills to respond to trends like climate change, resource scarcity and doing business in emerging markets marked by poverty, corruption and human rights violations.

But fewer than 8% believe that these knowledge and skills are currently being developed very effectively by either their own organisations or by business schools more broadly.

There is clearly a strong demand for more and better executive education around sustainable development that is currently not being met.

The CEOs and senior executives polled in Ashridge’s research identified three broad clusters of important knowledge and skills:

  1. Context: the ability to identify relevant social and environmental trends and their business implications and understand how to factor these into strategic decision-making to respond appropriately
  2. Complexity: the ability to lead in the face of uncertainty, ambiguity and disagreement
  3. Connectedness: the ability to understand the actors in the wider political landscape and to engage and build effective relationships with new kinds of external partners – for different businesses this can mean regulators, competitors, NGOs or local communities

The research also sends a clear message about how best to develop these knowledge and skill sets – traditional approaches are not enough, learning facilitators need to use a broad range of learning approaches to develop the global leaders of tomorrow.

Because the issues are complex, senior executives believe the most effective learning and skills development comes through practical experience, whether the learning is on-the-job, project based, experiential or through action learning approaches. Senior executives also value learning from mentors and peers through learning networks. These learning experiences can be enhanced by structured reflection through coaching or appreciative inquiry.

Although learning approaches like conventional e-learning and lecture-style learning are less rated by executives, these are likely to still have a role where more straightforward knowledge transfer and basic awareness raising is required as part of a broader, blended learning experience. But learning programmes that rely heavily on a lecture-based format are not fit for purpose.

The research identifies examples where a number of leading companies have already taken steps to develop these kinds of knowledge and skills among their senior executives. Case examples include Unilever, IBM, Novo Nordisk, BG Group, ABN Amro and InterfaceFLOR.

The Global Leaders of Tomorrow project is part of the European Academy of Business in Society (EABIS) Corporate Knowledge and Learning Programme and has received financial support from the EABIS Founding Corporate Partners IBM, Johnson and Johnson, Microsoft, Shell and Unilever.

The project has been conducted in support of the UN Principles for Responsible Management Education (PRME) initiative and was launched at the Global Forum for Responsible Management Education at the United Nations Headquarters in New York, 4th December 2008.

The research has been led by Ashridge Business School with Case Western Reserve University, the Center for Creative Leadership, China Europe International Business School, IEDC-Bled, IESE, INSEAD, Tecnológico de Monterrey, the University of Cape Town and the University of Waikato.

To access the draft report and other materials, please visit www.ashridge.org.uk/globalleaders. Visitors to the site also have the opportunity to provide online feedback and reactions to the project leaders.

 

About the author

Matthew Gitscham is Director of the Ashridge Centre for Business and Sustainability. He works with colleagues across the Ashridge faculty to promote thought leadership around organisational change, leadership development and sustainability. He has recently led research exploring CEO perspectives on the implications of sustainability for leadership development. This was conducted in partnership with the European Academy of Business in Society and the United Nations, and sponsored by Shell, Unilever, IBM, Johnson&Johnson and Microsoft.

Towards Greater Corporate Responsibility – Conclusions of EU-Funded Research

  • Publisher European Commission
  • Publication date September 2009
  • Type Reports
  • Category Managing Corporate Responsibility
  • Language English
  • Link PDF)policy-review-corporate-social-responsibility_en (PDF)
  • Free/Pay for content Free

This publication examines the results of socio-economic research projects on Corporate Social Responsibility (CSR) funded under the European Union’s Sixth Framework Programme for Research and Technological Development. In this review, the research carried out is put in the context of developing the concept of Corporate Social Responsibility as well as the evolving European Union policy in this area. As the document analyses different aspects of the issue, from strategies through instruments to outcomes in a comprehensive way, identifying also knowledge gaps and possible future trends, it should provide informative reading to all parties interested in the topic.

This body of research can now be complemented by more focussed management research related to business processes on the following themes:

  • mainstreaming CSR in firms’ strategic processes, including SMEs,
  • the linkage between CSR and innovation,
  • performance and impact indicators, and
  • global supply chain management.

Research on the internal strategic processes and mainstreaming CSR in business processes, as well as research on the wider societal outcomes of CSR programmes, both require more research effort in the coming years. In addition, in the face of continuing globalisation, a more profound analysis of the implications of global supply chains on CSR, and the factors limiting uptake of CSR in developing countries and new EU Member States deserve more attention in European research.

EABIS and CSR Europe Launch New Framework for Market Valuation of Non-Financial Performance

In the current economic situation, demonstrating the relevance of non-financial performance in the dialogue between companies and investors is a more timely challenge than ever, concludes a major report released by EABIS and CSR Europe in support of the EU Alliance for CSR. This view was also recently endorsed by European Commission Vice-President Guenter Verheugen.

The report is the first significant output from a unique business-academic-stakeholder collaboration. Lloyds TSB and Telecom Italia have led a group of businesses to develop a set of principles and recommendations in consultation with investors, trade and sectoral bodies, accounting organisations and other key stakeholders.

In parallel, Cranfield School of Management has coordinated a leading research team involving SDA Bocconi, Vlerick Leuven Gent and the University of Lille to identify latest knowledge and practice in the field. The research work has been supported by €100K in funding from EABIS’ Corporate Founding Partners – IBM, Johnson & Johnson, Microsoft, Shell and Unilever – and additional sponsorship from Lloyds and Telecom Italia.

The consultation report and overall project seek to demonstrate links between a wide range of environmental, social and governance factors and the financial performance of business through a filter of core non-financial value drivers, such as human capital, innovation and corporate governance. Through a better understanding of the causes of the long-term value of companies, investors can better identify winners and losers based on non-financial performance.

Based on the framework elaborated by the project, a number of principles have been identified to guide the practical implementation of the framework:

  • The focus on a small number of core non-financial performance drivers, key metrics and relevant ESG factors is more likely to fit with individual companies’ existing management models.
  • Core non-financial drivers, key metrics and relevant ESG factors need to be integrated into individual business management systems so the credibility of data and any forecast performance can be more easily accepted by investors.
  • Where the link between key metrics and ESG factors can be calibrated within an individual business, that business is more likely to want to better measure, manage, and incorporate its performance against those ESG factors in its dialogue with investors.
  • Core non-financial drivers and key metrics need to be directly linked to individual business strategies so they are material to investors and incorporated into their valuation models.
  • Where core non-financial drivers and key metrics have a direct impact on financial performance, then the ESG factors contributing to those core non-financial drivers also impact on financial performance.
  • Establishing a relationship between the key metrics and a wider range of ESG factors will enrich companies’ strategic commentary on non-financial performance and the materiality of ESG factors for investors.
  • Key metrics based on widely established and robust business data collection processes across markets and sectors will enable effective company and investor dialogue.
  • Identification of the core drivers of non-financial performance and associated key metrics will facilitate more effective communication and investor saliency.
  • A critical mass of companies articulating the importance and demonstrating the materiality of non-financial performance will be a major catalyst for increased investor saliency.
  • The effective communication of non-financial performance is a prerequisite for enhanced long-term value creation.

Commissioner Verheugen said: “I hope that the work of this laboratory can contribute to a quiet revolution in the way that enterprises who wish to can measure and communicate their non-financial performance… There is indeed no other powerful incentive to consider the strategic role of corporate responsibility than an investor able to value the role that it plays for the future prosperity and sustainability of a business.”

To access the Interim Report and other materials, please visit www.investorvalue.org. Visitors to the site also have the opportunity to provide online feedback and reactions to the project leaders.

Featured Resources

  • 1. Valuing Non-Financial Performance: A European Framework for Company and Investor Dialogue
  • 2. Enhanced Analytics for a New Generation of Investor: How the Investment Industry Can Use Extra-Financial Factors in Investing
  • KPMG International survey of corporate responsibility reporting 2008

Featured Schools

  • Cranfield School of Management
  • SDA Bocconi
  • Vlerick Leuven Gent School of Management