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Purpose
1. Business is destroying the world 2.What do we mean by sustainability? 3. A Sustainability Maturity Model
Version 5
Purpose
The purpose of Organisational Sustainability is:
To describe a way organisations, both private and public sector, can : a) Improve theirs and others sustainability, and in doing so also b) Show how their progress can be measured in economic, community, and environmental terms .
Main Headings: 1. 2. 3. 4. 5. 6. Business is destroying the world What do we mean by sustainability? A Sustainability Maturity model Example of maturing Organisational Sustainability Planning to make it happen How to assess Governments & Industries Sustainability Maturity
Copyright David Alman 2011
Civilisation in danger
Slide 1 with 12 supporting slides from Interconnectness of world problems by Fritjof Capra
Copyright David Alman 2011
Organisational Sustainability
An Organisations ability to achieve its goals and increase long-term stakeholder value by integrating economic, environmental and social opportunities into its strategies.
Adapted from Symposium on Sustainability Profiles in Leadership, NYC, Oct. 2001.
UN Based Definition
Meeting the present generations needs in ways that are not only economically viable, environmentally sound and socially equitable but will also allow future generations to do the same .
Based on an explanation in the Brundtland Report Our Common Future United Nations World Commission on Environment and Development, 1987
Copyright David Alman 2011
Thick Value
To achieve social, environmental, and economic (SEE) sustainability by optimising the value of resources and outcomes value to stakeholders (Organisational Health).
Thin Value
To achieve organisational sustainability by minimising waste in the use of resources (inputs) and optimising the value of services/products (outputs) (Financial Health).
Thin & Thick Value are terms coined by Umair Haque in The New Capitalist Manifesto Copyright David Alman 2011
Sustainability Terms
Social
Well-being
Environment
Economic
Resources
Productivity
Figure 4 from World Economic Forum report Redesigning business value: A roadmap for sustainable consumption
2. Well-being covers: Employee Health The World Health Organisation (WHO) and International Labour Organisation (ILO) define the aims of occupational health as: The promotion and maintenance of the highest degree of physical, mental, and social well-being of workers in all occupations by prevention of departures from health, and controlling risks. The four elements affecting employee well-being are therefore: Environmental factors; Physical health; Mental (psychological) health; and Social health.
Information drawn from Creating Healthy work organisations edited by Cooper & Williams
Cost of workplace stress in Australia (inc Presenteeism and Absenteeism) $14.81 billion a year
(Ref: The cost of workplace stress in Australia. August 2008. Medibank Private).
Economic cost of work related injury and illness in 2005-6 in Australia was $57.5 billion
(Ref Australian Safety and Compensation Council quoted by Safe to Work) Copyright David Alman 2011
Sustainability
Community well-being
Sustainability
Adapted from the World Economic Forum Report Redesigning Business Value: A Roadmap for Sustainable Consumption
Copyright David Alman 2011
2. Rebuilding: Breakthrough innovative improvements. The first step is toLevel firm up the foundation, as the current leading business practices of today Organisations integrate sustainability across all operations. Viable new operating and business models developed. Level 3. New value chains: Zero waste and no harm performance. Integrating sustainability across entire value chains to achieve no harm and zero net waste. Level 4. Balanced systems: Stakeholder driven sustainability. In which innovation drives sustainable value chains and value is redefined for all stakeholders as partners.
Adapted from the World Economic Forum Report Redesigning Business Value: A Roadmap for Sustainable Consumption
Copyright David Alman 2011
Adapted from the World Economic Forum Report Redesigning Business Value: A Roadmap for Sustainable Consumption
Copyright David Alman 2011
Adapted from the World Economic Forum Report Redesigning Business Value: A Roadmap for Sustainable Consumption
Copyright David Alman 2011
Adapted from the World Economic Forum Report Redesigning Business Value: A Roadmap for Sustainable Consumption
Copyright David Alman 2011
Adapted from the World Economic Forum Report Redesigning Business Value: A Roadmap for Sustainable Consumption
Copyright David Alman 2011
External
Shareholder dialogue
Natural Environment
Waste reduction
Value adding
Community well-being
Natural Environment
Waste reduction
Resources: Supplier dialogue Resources e.g. waste & emissions reduction Employee well-being e.g. health (physical, mental, and social)
Value adding
Community well-being
Waste reduction
Resources: Supplier dialogue on value chains Resources e.g. waste & emissions reduction Employee well-being e.g. Employee engagement
Value adding
Waste reduction
Resources: Supplier dialogue: On value chain change Resources e.g. waste & emissions reduction Employee well-being e.g. Employees enabled & empowered; use of Deep smarts
Value adding
Shareholder dialogue:
Industry & government collaboration; Consumer/ citizen engagement; co-opetition platforms
Natural Environment
Lower service & product impact on finite environmental resources
Waste reduction
Resources Supplier dialogue: Sustainability across value chains Community well-being. Reduced work related health costs. Resources e.g. Closed loops, Zero waste & emissions, No harm approach Employee well-being e.g. No harm approach & equity
Value adding
Shareholder dialogue:
Sustainable lifestyles, consensus business/government partnership
Waste reduction
Resources Supplier dialogue: Continuous value chain innovation. Closed loops. Resources e.g. Closed loops, Zero waste & emissions, No harm approach. True cost of resources in valuing resources Employee well-being e.g. Enrichment & social justice
Value adding
Community wellbeing. Sustainable enriched communities
Social
Safety hazards (flow on) costs to suppliers employees from products/services provided Transport costs
Network value contribution Competency level assessments Employee participation levels Staff absence costs Conflict/complaint costs Injury/stress costs
Economic
Customer/ Citizen
Complaints. Service/product satisfaction
Process productivity
% new improvements % inefficiency (non value adding activities)
Environmental
Suppliers
% of contaminants in supplies % of hazardous chemicals supplied % Energy used in supplies Sustainability of supplies Environmental damage from supplies
Process waste/value
Overall energy consumption Water usage/% recycled Solid waste/% recycled Emissions Hazards from materials used Network value contribution Competency level assessments Employee participation levels Staff absence costs Conflict/complaint costs Injury/stress costs
Social
Safety hazard (flow on) costs to suppliers employees from products/services provided Transport costs
Individuals; Employees and unions; Community & community groups; Industries and shareholders; Government (local, state, & federal); Media (news, talk shows); Social media.
Environmental (resources) Materials: % of recycled material used Energy: Energy saved due to conservation & efficiencies Water: % & total volume recycled & re-used Emissions, effluents, & waste: Greenhouse emissions by weight Ozone depleting substances by weight NO, SO, and other significant emissions by type & weight Total waste water discharged by quality & desalination Total weight of waste & hazardous waste. Total number and volume of spills Habitats affected by water discharge & run off
Biodiversity: Impact of activities, products, services on areas of high diversity value. Habitats protected or restored * Based on the Global Reporting Initiative (GRI). Reporting Frameworks. G 3.1 Guidelines Copyright David Alman 2011
To make it happen we have to be prepared to make major changes in our lifestyles, our economic models, our social organization, and our political life. We have to connect the dots between climate change and what I might call here, WEF water, energy and food Together, let us tear down the walls, he declared. The walls between the development agenda and the climate agenda. Between business, government and civil society. Between global security and global sustainability. It is good business good politics and good for society.
In over 1250 posts (at time of writing) the discussion has ranged widely, been informative, and supplied many references. This Power Point covers only one perspective on a small part (Organisational Sustainability) of that much larger discussion, now being reset into Blogs at: http://www.systemswiki.org/blog/?p=285
Copyright David Alman 2011
Helene Finidori
T.A. Balasubramanian
References
Models of Sustainability The ecology of commerce. Paul Hawken. Harper Business. Interconnectedness of world problems. Fritjof Capra. http://bit.ly/j7qPm9 The new capitalist manifesto. Umair Haque. Harvard Business Review Press. Capitalism at the crossroads. Stuart Hart. Wharton School publishing. Redesigning business value. Deloitte Touch Tohmatsu & World Economic Forum. http://bit.ly/k35zyx
Developing Organisational Sustainability Four steps to see sustainability as a strategic asset. Anton Breman. http://bit.ly/mdSXGV Creating Sustainable Value. Hart & Milstein. http://e4sw.org/papers/Hart_Milstein.pdf Mid-course correction toward a sustainable enterprise: The Interface model . Ray Anderson. The Peregrinzilla Press.
Productivity The Productivity Model. Philip McGee. http://bit.ly/lMhcmj Defining and measuring productivity in the public sector: Managerial perceptions . Linna, Pekkola, Ukko, & Melkas. http://bit.ly/iWWoMF Organisational Productivity. David Alman. http://slidesha.re/kZuPp7 Well-being Creating healthy work organizations. Ed. Cooper & Williams. Wiley & Sons The Gallop Q12 Employee Engagement- Poll 2008 Results. http://bit.ly/kOBxME The cost of workplace stress in Australia. August 2008. Medibank Private. http://bit.ly/kVRIPi The cost of work related injury and illness for Australian employers, workers and the community 2005-6. Safe to Work http://bit.ly/iGExb7 Workplace conflict and how business can harness it to thrive . CPP Global Human Capital Report. July 2008 http://bit.ly/lWJXST Sustainability Measures What is sustainable development? Kates, Parris, Leiserowitz. http://hvrd.me/jquAKT Translating ESG into Sustainable Business Value . UNEP Finance Initiative & World Business Council for Sustainable Development. http://bit.ly/lu67WO Global Reporting Initiative (GRI). Reporting Frameworks. G 3.1 Guidelines . http://bit.ly/mrtHfQ Sustainability Life Cycle Assessment The consumption dilemma. Deloitte Touche Tohmatsu & World Economic Forum. http://bit.ly/ij396T Life cycle-based sustainability indicators for assessment of the US food system . Heller & Keoleian. http://css.snre.umich.edu/css_doc/CSS00-04.pdf The Balanced Scorecard The Strategy-Focused Organization. Kaplan & Norton. Harvard University Press. Sustainable Organisation Performance. Graham Hubbard. http://bit.ly/kMwnoS The Sustainability Balanced Scorecard. Figge, Hahn, Schaltegger, & Wagner. http://bit.ly/msctCA Sustainability Benchmarking Lists of the most sustainable companies. Bob Willard. bit.ly/isZ0Ku Leadership and corporate responsibility metrics for sustainable corporate performance. Szekely & Knirsch. http://bit.ly/mrdjBs Sustainability Futures Thinking Systems Theory: Balancing efficiency with resilience. John Fullerton http://bit.ly/iMpkol The New Economics Foundation http://www.neweconomics.org/ Scenarios for 2040. The Challenge Network. http://bit.ly/jqIupu
Travelling Companions
http://bit.ly/kFOwpJ
http://bit.ly/lB7lEm
Copyright David Alman 2011
http://bit.ly/kYJRiS