Sustainability

Sustainability: What It Is and How to Measure It begins with a succinct business-focused summary of how to think about the risks and opportunities associated with sustainability. The author then includes his proprietary framework, The Corporate Sustainability Scorecard TM C-suite rating system, including the over 140 key sustainability indicators that are used to rate an organization's sustainability efforts. Each KSI includes examples from organizations around the world, giving the reader a complete and unbiased understanding of all aspects of sustainability. The Scorecard has been developed over the past 20 years and used by more than 70 corporations to rate themselves on sustainability.

Gilbert S. Hedstrom illustrates the use of the Scorecard with hundreds of examples. He discusses sustainability transformation, governance, and strategy and execution. Social responsibility and environmental stewardship form important parts of his discourse in this important contribution to the debate on sustainability that will benefit business executives and those interested in sustainability and business.

Read the author's related article on the NACD blog here: https://blog.nacdonline.org/posts/pge-lessons-oversight

Auteur

Gilbert S. Hedstrom, Hedstrom Associates

Texte du rabat

Sustainability: What It Is and How to Measure It begins with a succinct business-focused summary of how to think about the risks and opportunities associated with sustainability. The author then includes his proprietary framework, The Corporate Sustainability ScorecardTM C-suite rating system, including the over 140 key sustainability indicators that are used to rate an organization's sustainability efforts. Each KSI includes examples from organizations around the world, giving the reader a complete and unbiased understanding of all aspects of sustainability. The Scorecard has been developed over the past 20 years and used by more than 70 corporations to rate themselves on sustainability.

Gilbert S. Hedstrom illustrates the use of the Scorecard with hundreds of examples. He discusses sustainability transformation, governance, and strategy and execution. Social responsibility and environmental stewardship form important parts of his discourse in this important contribution to the debate on sustainability that will benefit business executives and those interested in sustainability and business.

Read the author's related article on the NACD blog here: https://blog.nacdonline.org/posts/pge-lessons-oversight

Résumé

In his new book, Sustainability: What It Is and How To Measure It, consultant and author Gib Hedstrom wisely observes the salient selling point for many businesses when ruminating on how to address sustainability. From 2015 to 2030 the global middle class will double in size from 2.5 billion people to about 5 billion people. As Hedstrom wryly notes, in most of his meetings with corporate boards, eyes begin to glaze over when presented with some of the dry facts about sustainability but the growth of the global middle class grabs their attention.

Hedstrom's observation underscores what noted economist and professor Jefferey Sachs has posited regarding sustainability - economic policy works best when it focuses simultaneously on three big issues: first, promoting economic growth and decent jobs; second, promoting social fairness to women, the poor and minority groups; and third, promoting environmental sustainability.

Thus, the key challenge is how to understand the sustainability concept in its many guises, emphasizing the opportunity side of the equation (economic growth and jobs), and then presenting a complete system that enables a company to accurately measure itself. It's a compelling two-step process that could be the one-stop shopping many executives need in order to tackle what may be the most pressing issue of our time.

Hedstrom comes to the task unusually qualified: he spent 20 years at consulting firm Arthur D. Little, advising CEOs and board members about how to handle thorny environmental and business challenges. From 2004, with the establishment of his eponymous consulting firm, Hedstrom continues to assist the corporate community on sustainability issues. He also has served as program director for two sustainability committees at The Conference Board, which is how I came to know and appreciate Gib's unique capabilities and thought leadership.

Key to the book is Hedstrom's proprietary Corporate Sustainability Scorecard(TM), a C-suite rating system developed over the course of 20 years and employed by more than 70 Fortune 500 companies. Whether you are new to the field of sustainability or an experienced veteran, Sustainability: What It Is and How To Measure It, may prove to be the invaluable reference book on the most challenging issue of our time.

--Michael Fanning
Former global head of sustainability, Michelin Group, and
Former president, Business Partnership Foundation, USC Darla Moore School of Business

Contenu

Part 1 1

Chapter 1: Sustainability in 2020 and Beyond 3

The Drivers: Economics 101 3

Sustainability: Four Big Buckets 5

The Huge Business Opportunity 6

Mixed Signals 7

How to Get Started 8

Chapter 2: Why Bother? 11

Opportunity of the Century 11

Global Risk ReviewWEF 13

But WaitDelhi, Delft, Des Moines 13

Why Have Companies Pursued ESG? 14

The Business Case for Sustainability 15

Investors Speaking Up 16

Customers Speaking Up 18

Approaching the Tipping Point 18

Chapter 3: TerminologyWhat Does Sustainability Really Mean? 21

The Jargon 21

What Is Sustainability? 22

ESG and the Triple Bottom Line 22

Two Sides of the Coin: Stop and Go 23

From Farm to Fork 24

Today's Sustainability Conversation 26

Chapter 4: What Does Sustainability Mean to Your Industry? 29

The 30,000 Foot View 29

The Common Denominator: More ProfitLess Stuff 30

Tomorrow's Industry Sectors 31

Tomorrow's Industry SectorsToday 32

Counterpoint: The Skeptics 34

Positioning for Growth 35

Chapter 5 : Governance and Leadership: The G in ESG 37

The Situation: Governance and Sustainability 38

Governance: The Key Elements 38

Investors' Dilemma: Failing the 80/20 Rule 40

Governance at a Glance: Tomorrow's Leaders Today 41

The Scorecard: Governance and Leadership 43

Chapter 6: Strategy and Execution: The Missing S in ESG 45

The Situation: Beyond ESG 46

Strategy: The Key Elements 47

The Opportunity: Strategy and Sustainability 47

Strategy and Execution at a Glance: Tomorrow's Leaders Today 49

The Scorecard: Strategy and Execution 51

Chapter 7: Environmental Stewardship: The E in ESG 53

The Situation: Overdose on Environmental Issues 54

Materiality Assessment 54

Environment: The Key Elements 57

Environmental Stewardship At a Glance: Tomorrow's Leaders Today 58

The Scorecard: Environmental Stewardship 59

Chapter 8: Social Responsibility: The S in ESG 61

The Situation: Looking BackNot Looking Ahead 62

Social Responsibility: The Key Elements 63

The Opportunity: Glass Half Full 64

Social Responsibility at a Glance: Tomorrow's Leaders Today 65

The Scorecard: Social Responsibility 66

Chapter 9: The New ESG Regulators 67

Investors: The New EPA? 67

The Global Regulatory Landscape 69

Private Sector Collaborations 73

The Impact of Millennials 73

Summary 74

Part 2 77

Chapter 10: Introduction to the Corporate Sustainability ScorecardC-Suite Rating

System 79

This chapter outlines: 79

What Is the Corporate Sustainability Scorecard? 79

Why this Scorecard? 80

Who Is the Scorecard Intended for? 81

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