Creating a Better Understanding in the Sustainability Reporting World

By: Alexandra Kueller

Recently, the SSC team attended US SIF's annual conference in Washington DC which focused on sustainable and responsible investment. The discussion topics covered a wide range of issues – from finance and investing to sustainability. One of the discussions that piqued our interest was a conversation on measuring and reporting sustainability factors in portfolio performance.

Below are some takeaways from the discussion that we thought you might find interesting:

Is sustainability reporting truly an “apples to apples” comparison?

  •  When reading over sustainability reports, it is very easy to take Company A and try and compare it to Company B. But are those two companies really on the same playing field? Often, different industries will report different metrics or benchmarking goals. It is important to remember NOT to try and extrapolate data and project it.

Harmonization is needed

  •  Take a look at the sustainability reports out there. Do you see any similarities? There’s not a lot of commonality between reports, which can further cause us to blindly compare reports. By using well known platforms, such as GRI and CDP, it allows for more harmonization between reports.

Move beyond disclosure to context

  • If you want a strong sustainability report, it is key to move past just the “disclosure” phase and move into the “context” phase. Providing information about the metrics and data will give the report the details needed to beef up and strengthen your report.

Understand that change is incremental

  •  Everyone knows that change does not happen overnight. So why do we find ourselves hoping for dramatic change in data from year to year in sustainability reporting? Yes, we all want to see change, but if you enter with the right mindset – true change can take between 3-5 years – this can help create a better framework for your reporting (and allow yourself to set more appropriate goals!).

You can read more about our time at the US SIF conference here.

Happy Birthday SSC!

Today, we celebrate another rewarding year since SSC was founded and we want to thank you being part of our sustainability journey.  In case you missed it, we wanted to share one of our popular blog posts from this year.  Enjoy!

At SSC, we often look to thought leaders and successful CEOs to give us inspiration and we are rarely disappointed in what we find.  In the Harvard Business Review article, Four Keys to Thinking About the Future, author Jeffrey Gedmin offers four ideas to help leaders see into the future. We thought his points below were great, and applied them to sustainability strategy and planning.

1. ENHANCE YOUR POWER OF OBSERVATION.

"For starters, be empirical and always be sure you’re working with the fullest data set possible when making judgments and discerning trends. Careful listening, a lost art in today’s culture of certitude and compulsive pontificating, can help us distinguish the signal from the noise."

Listen to your stakeholders -- both your supporters and your critics. Listen to the language they are using. Investigate their claims.  Ask them for clarification when you don't fully understand what they are saying, and make them be specific. You don't have to respond to every request or complaint that you get, but having an open mind will allow you to spot trends and notice opportunities you might otherwise miss.

2. APPRECIATE THE VALUE OF BEING (A LITTLE) ASOCIAL.

"I’m convinced that a company culture that encourages curiosity is vitally important... Curiosity keeps us learning and helps us, like the virtue of patience, to see the hidden, or understand the unexplained."

Don't put all your eggs in one basket -- experiment, pilot, and test sustainability initiatives in small increments. Find a risk level that's comfortable for you and play around a bit. Ask the question "why?"... a lot.  Find ways to help your colleagues get curious about sustainability and its impact on their job functions.

3. STUDY HISTORY.

"I think you study history to study human nature, the human condition, and human behavior. This is the realm of patterns, but also — frustratingly and fascinatingly — of infinite complexity and unpredictability."

Revisit the sustainability initiatives that failed or were rejected by management and ask some questions. What are the systemic factors that are keeping your sustainability strategy from reaching its full potential? What lessons from other departments and initiatives can inform your approach? Are there examples that you can draw on from other industries, or other parts of your supply chain? Sustainability challenges are rarely unique, and in most cases you can find answers (or parts of answers) if you look around and notice who's been in a similar situation before.

4. LEARN TO DEAL WITH AMBIGUITY.

"Whether it’s nature or nurture, most of us seem hard-wired to sort the world into simple binary choices. Alas, there’s often lots of grey out there."

What impact is climate change going to have on your business? How is a growing income disparity going to affect your market share? When will tighter regulation on your supply chain partners start impacting your pricing model? You will find that the true answer to these questions is, "I don't know." Sustainability is so complex that it is often impossible to accurately predict the future. So effective sustainability leaders must learn to successfully deal with ambiguity. Using systems thinking, applying sustainability principles ("reduce reliance on fossil fuels") rather than prescriptive rules ("install solar") will help sustainability leaders stay flexible and open to the best opportunities when they present themselves down the road.

Thanks to Environmental Leader for publishing a version of this article on their website!

SSC helps companies develop sustainability strategies that are relevant today, AND sets a course for the future. If you'd like some assistance creating or refining your sustainability roadmap, please contact us. We'd love to help.

Creating a Better Understanding of the B2B Green Marketing Landscape

By: Alexandra Kueller

In June, GreenBiz.com hosted a webinar, presented by Joel Makower, focusing on the business to business (or rather B2B) green marketing landscape (the guest speakers included Yalmaz Siddiqui, Kirsten Ritchie, and Scot Case). As clients increase their sustainability knowledge, the information or type of product they request will change as well. You need to be one step ahead of them in anticipating their needs as their sustainability knowledge increases.

Below are some of our takeaways from the webinar to make sure that happens:

Figure out what your customer wants

  • One easy way is to (actually) read the Environmentally Preferable Purchasing Policies written in the priority segments provided by your client. The reading might be dry, but all the crucial details will be right in front of you.

Determine if the customer is seeking threshold-based or data-based communication

  • Be prepared to start supplying more information to your clients. As their sustainability knowledge increases, they’ll soon want more details about their product, so structured data reports will become the norm.

See if any additional environmental performances are needed

  • Make sure to check to see if your clients need to meet any additional criteria in the product. For example, if a client is trying to meet LEED standards, their product might have to be regionally sourced. Best to double check and be sure!

Expand to health, life cycle thinking and social equity

  • Go a step further and ask yourself what else can be done. Should you provide an ingredient disclosure? Does a Life Cycle Assessment need to be completed? Anticipate your clients’ needs!

Learn more about business to consumer green marketing here.