Sustainability Management Planning: Creation and Implementation 1 Outlining the Process Vital 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 2 Where to Start…and Why Similar to infusing Total Quality Management in organizations • • • • Management Support Self-initiated internal champions Customers/Key clients Public Image 3 Understand & Define Objectives, Scope & Limits Consider previous experience and any existing activities when defining Be realistic… 4 Elements of a Sustainability Program Infrastructure 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 5 Contents of the Sustainability Plan Update 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 6 Assure the Triple Bottom Line Throughout Supply Chain Include activities in Sustainability Plan that address ENTIRE supply chain • Reduction Scope I,II,III Emissions • Waste reduction • Reduction water usage • Social Policies, e.g. wage, child labor • Conflict minerals • Fair trade sources • Sustainable procurement • Sustainable Branding • Optimizing operations 7 Sustainability Analysis for a Manufacturer Improving the profit and sustainability of products and services Scope 2 Purchased Electricity Purchased Water Scope 3 Ingredients Packaging Consumables Scope 1 Finished Product FOB Warehouse Product Processing Plant Scope 3 Delivered Product Organization Boundary Waste Scope 3 Lowering energy use and carbon footprint per unit of production in each of these components will increase profitability 8 Branding and Sustainability Host of products being branded as sustainable 9 Implementing Sustainability Plans Early “wins” create momentum High Phase II Phase III Low Return on Investment Selecting Sustainable Projects Phase I Low High Difficulty of Implementation 10 Developing Appropriate Metrics Vital 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 Waste Glass Paper Corrugated Plastics Wrappers Compost Metals Electronics 11 Training & Communication are KEY to success On-going throughout your organization, community, supply chain Address Multi-Stakeholders in Organization, Community, Supply Chain: 1. 2. 3. 4. 5. 6. Employees Contractors Vendors/Suppliers Potential & Current Customers Community Regulators 12 Resources to Assist Useful 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 Illinois Sustainable Technology Center (ISTC) X X X 13 Impact of Technical Assistance Program on Illinois Supporting 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 14 Strategic Sustainability Meeting 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 1 5 Reaping the benefits of becoming more sustainable CASE STUDIES 16 Results from Organizations that ACT on Sustainability Based 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 17 Characterize Analyze Implement Evaluate 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 18 National Leadership. Local Success. 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 – – – – – • John Mulrow – – – • 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 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 19 Measurable results 20 Chicago Department of Aviation Case Study 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 21 22 Three Levels of Service Available through ISTC Options to begin the process Service Silver Gold Platinum X X X Review / develop sustainability plan X X Triple Bottom Line Analysis X X Waste audits 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 23 Illinois Governor’s Sustainability Award Recognizing sustainability related achievements of organizations and communities 24 Next Steps ISTC assistance Whether just starting to infuse sustainability or interest in a review of an existing program, contact: Deb Jacobson 1010 Jorie Boulevard Suite 338 Oak Brook, IL 60523 djacobso@illinois.edu 630.472.5019 25