Can You Measure Your Way to Sustainability?
CSIN National Conference
March 2, 2010
The Courtyard by Marriot
David Simpson
The importance of measurement
The value of measurement as a
response to the sustainability challenge
rests on the assumption that more
measures and information will lead to
better sustainability management inside
the company
“What gets measured gets managed…”
“If you don’t know where your are
going, you won’t be able to define
where you are heading..”
Measurement Failure: BP Explosion (Texas)
March 23, 2005
One of the most serious workplace disasters in the US:
15 deaths; 170 serious injuries
What Went Wrong?
BP arguably failed:
• To listen
• To fully understand
• To respond
Lesson: Measurement alone will not get us to a
sustainable future.
Measurement and Accountability
In order to plot a
successful path towards
sustainability,
measurement must be
tied to an overarching
accountability
framework.
Accountability as a Concept
AGENT
P
P
(representative model)
(stakeholder model)
Principles of Accountability
Inclusiveness
Materiality
Responsiveness
Inclusivity:
Do Measures Reflect Stakeholders Interests?
• Do they invite the participation and active
engagement of both internal and external
stakeholders in the design and analysis of
the measures?
• Are measures transparent and accessible?
• Does the process allow stakeholders to
influence how measures are used and
interpreted?
Are you listening to us?
• Are stakeholders involved in identifying
issues and analyzing outcomes?
Inclusiveness – Case Study
Traidcraft – A ‘fair trade’ company which aims to fight
poverty through approaches to trade that help poor
people in developing countries.
• ‘Fair wages’ - an important indicator of success
• No universal understanding of what ‘fair’ meant
• At heart of debate was varied interpretations of the
company’s values, ‘fairness’, and so what constituted
suitable measures to calibrate performance.
• Often the debate itself can be valuable
Materiality:
Are the Measures Relevant?
• Are measures relevant and significant
to stakeholders?
• Will measures help to influence the
decisions, actions and performance of
an organization or its stakeholders?
• Do measures reflect a
comprehensive and balanced
understanding / prioritization of
important sustainability issues?
Do you really get what’s important?
Case Study -
11
Measures and Materiality
• Focus on the most relevant and significant issues
• Don’t let the tail wag the dog (ie. Keep eye on issue
not the measure – finance v.s operations)
• Don’t shy away from qualitative data (it can often be
more material)
• Use appropriate time horizons (short/long) to
determine impacts.
•Don’t start using GRI indicators as a pick and choose
menu.
Responsiveness:
Are Measures Linked to Actions?
• Are measures linked to decisionmaking?
• Do measures respond to the needs,
concerns and expectations of
stakeholders?
• Are measures contextualized?
Are you ready to respond?
•Are meaningful targets set for
measures which stakeholders can
agree with?
Responsiveness – Case Study
Vancity – Financial Services CU in Vancouver
• Develops measures and reports back on their
performance. Linking each measure to an executive in
the company.
• Measure development process embedded into
governance function.
• Measures integrated into the business strategy and
planning process – not just the sustainability
department.
•Channel measures into learning and improvement.
Conclusion:
• An overemphasis on measurement may simply
lead us down the garden path.
• Accountability mechanisms lie at the root of the
effective measurements and need to be hardwired in to sustainability plans.
• A measurement and evaluation function is part
of an accountability framework but it also
requires:
– Adequate disclosure and transparency
– Meaningful participation; and
– A feedback and complaints handling process when
measures are being wrongly used or interpreted