Más contenido relacionado Más de Operational Excellence Consulting (20) Sustainability Management - Balancing the Environment, Equity & Economy2. © Operational Excellence Consulting
LEARNING OBJECTIVES
2
Acquire knowledge on the
key concepts and
definitions of Sustainability
Management
Understand the pros and
cons and the critical
success factors of
Sustainability Management
Describe the principles,
practices and measures of
Sustainability Management
NOTE: This is a PARTIAL PREVIEW.
To download the complete presentation, please
visit: https://www.oeconsulting.com.sg
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CONTENTS
3
INTRODUCTION &
KEY CONCEPTS
01
PRINCIPLES &
PRACTICES
02
MEASURES &
REPORTING
03
FROM ONE
EARTH TO ONE
WORLD
04
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$1 T
Worth of all food produced each year ends up rotting in the bins
of consumers and retailers, or spoiling due to poor transportation
and harvesting practices.
4
Source: United Nations Global Compact
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The greatest threat to our
planet is the belief that
someone else will save it.
Robert Swan
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PROJECTED GROWTH IN POPULATION & RESOURCE DEMANDS BY
2050
7
With 9.7 billion people on the planet by 2050, we can expect a 54 percent
increase in global food demand and 56 percent increase in energy demand.
Source: The Nature Conservancy
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2021 GLOBAL RISKS OUTLOOK
8
Source: WEF Global Risks Report 2021
LIKELIHOOD
IMPACT
Average High
Average
High
Environmental and societal risks
are the key concerns
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SOME FACTS ABOUT SUSTAINABILITY
9
Sources: Accenture, E&Y, Carbon Disclosure Project
Companies agree that
sustainability is vital to the
future of their business
Respondents cited cost
reduction as the principal driver
of their company’s
sustainability agenda
Sustainability executives report
an increase in inquiries from
shareholders and investors
regarding sustainability-related
issues
Companies cited consumer
demand is the primary driver of
investment in sustainable
initiatives
Companies say they have a
dedicated budget for energy
efficiency programs
Billion-dollar companies in the
U.S. are implementing
renewable energy integration
and procurement strategies
78% 74% 66%
62% 51% 70%
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MINDSET OF A NON-SUSTAINABILITY THINKER
10
“Impact of our effort will
be so low it won’t even
move the needle.”
“A PR project to
enhance the company
image.”
“It only has to do with
Marketing and
Operations.”
“Let’s leave it to
others to do it.”
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WHAT IS SUSTAINABILITY?
11
Climate Change?
Conservation?
Renewable Energy?
Eco-friendly?
Circular Economy?
Green?
Grassroot Activism?
Sustainable Growth?
Better Use of Technology?
A Population Problem?
Regeneration?
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© Operational Excellence Consulting. All rights reserved.
● Sustainability first operates under the
assumption that resources are finite
● Since resources will not last forever,
sustainability attempts to meet present-day
needs in such a way as to not compromise
resources for future generations
● When making use of resources, we should
contemplate long-term goals and the
consequences of reaching those goals
WHAT IS SUSTAINABILITY?
12
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OECD DEFINITION OF SUSTAINABILITY
13
Sustainability refers to:
a. use of the biosphere by present generations while maintaining
its potential yield (benefit) for future generations; and/or
b. non-declining trends of economic growth and development that
might be impaired by natural resource depletion and
environmental degradation.
Source: OECD
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THE THREE PILLARS OF SUSTAINABILITY – BALANCE BETWEEN THE
ENVIRONMENT, SOCIETY & ECONOMY
14
ENVIRONMENTAL
A viable natural environment
ECONOMIC
Sufficient
economy
SOCIAL
Nurturing
community
SUSTAINABLE
DEVELOPMENT
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WHY IS SUSTAINABILITY IMPORTANT?
15
New Growth
Opportunities
Sustainability is not only
essential in order to prevent
negative global changes
but also offers opportunities
in new areas of growth
Green Investment &
Societal Development
Sustainability is seen as a
necessary component in
business; investors keep in
mind the company’s
environmental protection
and community
development efforts
Positive Business
Results
A reasonable degree of
sustainability in business is
usually responsible for
improved productivity,
lower debts, equity, and
better financial condition
Improve Corporate
Reputation
Most reputable businesses
believe that sustainable
business strategies improve
the company’s mission,
reputation, and customer
reviews
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EXAMPLES OF SUSTAINABLE DEVELOPMENT
16
Solar Energy
Green Space
Efficient Water
Fixtures
Sustainable
Construction
Wind Energy
Sustainable
Transportation
Sustainable Forestry
Crop Rotation
Sustainable Fishing
Hydropower
Sustainability
Community Food
Forest
Water Recycling
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EXAMPLES OF SUSTAINABILITY IN BUSINESS CORPORATIONS (1/3)
17
Walmart McDonald’s
§ Only source chickens in the U.S.
not treated with antibiotics
important to human medicine
§ Seven classic burgers have no
artificial preservatives, no artificial
flavors and no added colors from
artificial sources
§ Committed to only source cage-
free eggs by 2025 in U.S. and
Canada
§ Cut fuel usage for Wal-Mart’s
fleet of trucks to lower carbon
emissions and also lower fuel
costs by re-routing trucks, and
use of turn-loading pallets
§ Has their own private staff
meteorologist tracking hurricanes
and stocked up nearby
distribution centers outside the
path of the hurricanes to quickly
resupply stores after the
hurricane
Chr. Hansen
§ Company focuses its
sustainability efforts on
contributing to the United Nations’
Sustainable Development Goals
(SDGs)
§ As a result, 82% of the company’s
revenue contributes to targets like
increasing food yields, reducing
food waste and phasing out
antibiotics in animal production
Source: Operational Excellence Consulting Research
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U.N. GLOBAL COMPACT’S TEN PRINCIPLES
18
LABOUR
Principle 3 Businesses should uphold the freedom of
association and the effective recognition of the right
to collective bargaining.
Principle 4 The elimination of all forms of forced and
compulsory labor.
Principle 5 The effective abolition of child labor.
Principle 6 The elimination of discrimination in respect of
employment and occupation.
HUMAN RIGHTS
Principle 1 Businesses should support and respect the
protection of internationally proclaimed human
rights.
Principle 2 Make sure that they are not complicit in human
rights abuses.
ENVIRONMENT
Principle 7 Businesses are asked to support a precautionary
approach to environmental challenges.
Principle 8 Undertake initiatives to promote greater
environmental responsibility.
Principle 9 Encourage the development and diffusion of
environmentally friendly technologies.
ANTI-CORRUPTION
Principle 10 Businesses should work against corruption in all its
forms, including extortion and bribery.
Source: United Nations Global Compact
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DUAL GOALS OF SUSTAINABLE DEVELOPMENT
19
?
To meet the needs of the existing
generation without compromising
the quality of the environment for
future generations
To promote the kind of
development that minimizes
environmental problems
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LEAN THINKING APPROACH CONTRIBUTES TO SUSTAINABILITY
THROUGH WASTE ELEMINATION
20
OVER-PRODUCTION
Producing more than what the
customer needs
INVENTORY
Building and storing extra
products the customer has not
ordered
TRANSPORTATION
Moving product from one place
to another
DEFECTS
Reprocessing, or correcting
work
OVER-PROCESSING
Adding excess value when the
customer does not require it
MOTION
Extra physical or mental motion
that does not add value
INTELLECT
Not using employees’ full
intellectual contribution
WAITING
Employees waiting for another
process or a machine/tool
Wastes
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DESIGN THINKING APPROACH CONTRIBUTES TO SUSTAINABILITY
THROUGH INNOVATION & CREATIVE PROBLEM SOLVING
21
Learn about the
audience for
whom you are
designing, by
observation and
interview. Who is
my user? What
matters to this
person?
Create a point of
view that is
based on user
needs and
insights.
What are their
needs?
Brainstorm and
come up with
as many
creative
solutions as
possible.
Wild ideas are
encouraged!
Build a
representation of
one or more of
your ideas to show
to others. How can
I show my idea?
Remember: A
prototype is just a
rough draft!
Share your
prototyped idea
with your original
user for
feedback. What
worked? What
didn’t?
EMPATHIZE
DEFINE
IDEATE
PROTOTYPE
TEST
Source: Based on Stanford d.school
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SPOTLIGHT ON SUPPLY CHAIN
22
Sourcing &
Procurement
§ Supplier diversity
§ Supplier risk/
sustainability
Logistics &
Warehousing
§ Carbon emissions
§ Fuel
§ Routing
Manufacturing
§ Carbon emissions
§ Water and other
pollution
§ Electricity usage
Supply Chain
Planning
§ Network design
End-to-End Supply Chain
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EASY CHANGES TO LIVE SUSTAINABLY EVERY DAY
23
Use Sustainable
Products
§ Choose brands that
use recycled plastics
or materials
§ Replace fluorescent
tubes with LED bulbs
Choose Sustainable
Food & Beverages
§ Choose sustainable
food manufacturers
§ Shop at local farmers
markets
Make Transportation
Adjustments
§ Use an electric car,
cycle or walk
§ Opt to carpool
§ Drive coworkers and
friends
Choose Sustainable
Billing Options
§ Go paperless
§ Deliver bills to your
email
Cut Down on Plastic
§ Avoid plastic-made
products
§ Use reusable grocery
bags
Save Water
§ Take shorter showers
§ Install water-saving
shower heads or flow
restrictors
Recycle
§ Use the recycle bins
provided in or near
your homes and
businesses
Choose Reusable
Products
§ Use reusable bottles,
grocery bags and food
storage containers
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WHAT IS THE TRIPLE BOTTOM LINE (TBL)?
24
The Triple Bottom Line is a business concept that posits
firms should commit to measuring their social and
environmental impact—in addition to their financial
performance—rather than solely focusing on generating
profit, or the standard “bottom line.” It can be broken
down into “three Ps”: profit, people, and the planet.
Source: Harvard Business School Online
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WHAT ARE THE KEY ESG ISSUES?
25
SOCIAL
§ Health, safety, and human
capital development
§ Product and consumer
safety
§ Community relations work
§ Socially cognizant
opportunities the company
creates
ENVIRONMENTAL
§ Contribution to the fight
against climate change
§ A company’s utilization of
“natural capital”, e.g. raw
materials sourcing
§ Pollution and waste
management
§ Highlights of where the
company uses green
technologies and renewable
energy
GOVERNANCE
§ Corporate governance
fairness and accountability
§ Transparency and ethics
considerations
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THE SPECTRUM OF SUSTAINABILITY
26
Source: Bill Reed, ReGenesis
SUSTAINABLE
CONVENTIONAL GREEN REGENERATIVE
RESTORATIVE
REGENERATING
Natural System Design
Patterns
Holistic Thinking
DEGENERATING
Mechanistic Design
Reductionist Thinking
Parts
LESS
Energy / Materials
Required
MORE
Energy / Materials
Required
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CRITICAL SUCCESS FACTORS FOR BUSINESSES
27
Overarching sustainability policy
2
Awareness and training
3
Senior management commitment
1
Understand the business benefits
4
Set goals and targets
5
Align to legislative and regulatory
frameworks
7
Embed into the organization’s
processes
8
Job descriptions and incentives
6
Assign dedicated resources
9
Interdepartmental coordination
10
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“
Insanity is doing the same
thing, over and over again,
but expecting different
results.”
ALBERT EINSTEIN
28
30. © Operational Excellence Consulting
Operational Excellence Consulting is a management
training and consulting firm that assists organizations
in improving business performance and effectiveness.
Based in Singapore, the firm’s mission is to create
business value for organizations through innovative
design and operational excellence management
training and consulting solutions. For more
information, please visit www.oeconsulting.com.sg
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