IS SP-SA STUDY GUIDE
FIRST EDITION, 2016
Copyright © 2016 by the International Society of Sustainability Professionals. All rights reserved. The International Society of Sustainability Professionals (ISSP) invested considerable time and resources to create this Study Guide. ISSP authorizes individual use of this Study Guide to those who purchase the Study Guide from ISSP. In return for this authorization, the purchaser agrees to: • Retain all copyright and other proprietary notices contained in the Study Guide, • Not sell or modify the Study Guide, and • Not reproduce, display, or distribute the Study Guide in any way for any public or commercial purpose, including display on a website or in a networked environment. Unauthorized reproduction or display of the Study Guide violates copyright, trademark, and other laws and is prohibited. Redistributing the Study Guide on the internet or otherwise reproducing and/or distributing the Study Guide is STRICTLY prohibited even if offered free of charge. Disclaimer This Study Guide is intended to assist candidates in preparing for the ISSP Sustainability Associate (ISSP-SA) exam with guidance on how to organize their study efforts. It is not intended to be the sole source of information as knowledge needed to pass the exam should come from a variety of sources, including but not limited to the ISSP Core Competency Study, the ISSP Body of Knowledge and the ISSP Job Task Analysis. Using this Study Guide is not a guarantee that a candidate will successfully pass the exam. As a condition of use, the user covenants not to sue and agrees to waive and release the International Society of Sustainability Professionals, its officers, directors, staff, and volunteers from any and all claims, demands, and causes of action for any injuries, losses, or damages (including, without limitation, failure to pass any International Society of Sustainability Professionals exams) that the user may now or hereafter have a right to assert against such parties as a result of the use of, or reliance on, the Study Guide. We welcome feedback! Please address all questions and comments to us at:
[email protected].
International Society of Sustainability Professionals 2515 NE 17th Ave Portland, OR 97212 USA
ISBN: 978-0-9983925-0-9
ACKNOWLEDGEMENTS The ISSP Sustainability Associate (ISSP-SA) Study Guide is a valuable tool for sustainability practitioners preparing to attain the ISSP Sustainability Associate (ISSP-SA) credential. We are extremely grateful to those who were involved in the creation of this resource.
ISSP Management Gina MacIlwraith, General Manager
Study Guide Task Force Lucinda Brown, ISSP Board of Directors, Liaison to Board, Project Manager, Lead Co-author Christopher Juniper, Task Force Chair, Lead Co-author Steve Flannery, Editor Beverly Oviedo, Instructional Designer The report has been created by contributions from: Madhav Acharya, Rob Andrejewski, Dorothy Atwood, Sarah Beaubien, Steve Boss, Kathryn Cooper, Julian Crawford, Joan Darvish-Rouhani, Paola Fiore, Neal Forsthoefel, Ian Gesch, Sue Ide, Justin Imiola, João Marcello Macedo Leme, KJ McCorry, Jeffery Omelchuk, Steven Parker, Illene Pevec, Aurora Reinke, Oscar Rodriguez-Gonzalez, Rosalinda Sanquiche, Kelly Simmons, Lesley Stone, Shannon Tocchini, Oxana Trotsenko, Jerry Unruh, Marsha Willard, and Jeffrey Yorzyk.
Support for this study guide was provided by: H K Allison Projects For Sustainability, Communication Design Team, Project Lead: Nicole Langstaff The Dragonfly Fund
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TABLE OF CONTENTS Chapter Table of Contents Introduction............................................................................................................................1 Chapter One: Issues, Trends, Impacts and Perspectives.. ...........................................................6 Defining Sustainability and Sustainable Development......................................................... 7 Key Social Issues.......................................................................................................... 11 Key Environmental Issues.............................................................................................. 15 Key Economic Issues..................................................................................................... 24 Chapter Two: Social Justice, Impact, and Responsibility......................................................... 37 Engaging Stakeholders.................................................................................................. 38 Engaging Employees . . .................................................................................................... 40 Customers and constituents........................................................................................... 43 Engaging Suppliers....................................................................................................... 44 Engaging Communities.. ................................................................................................ 44 Engaging Future Generations......................................................................................... 45 Chapter Three: Frameworks and Principles............................................................................ 50 Sustainability Frameworks............................................................................................. 51 Sustainability Principles. . .............................................................................................. 56 Chapter Four: Systems Thinking and Interdependencies......................................................... 66 Systems Structure and Behavior.. .................................................................................... 68 Applying Systems Thinking........................................................................................... 71 Examples of Interdependencies....................................................................................... 72 Chapter Five: Benefits of Sustainability Practices................................................................... 77 Enterprise Practices and Benefits.................................................................................... 79 Social Practices and Benefits . . ........................................................................................ 83 Governance Practices and Benefits................................................................................. 85 Summary of Sustainability Benefits................................................................................. 86 Chapter Six: Historical Background and Events...................................................................... 92 The Industrial Age....................................................................................................... 93 The Birth of Environmentalism...................................................................................... 94 Toward Sustainable Development................................................................................... 97 At-a-Glance History of Sustainable Development........................................................... 100 Chapter Seven: Global Institutions, Policies and Initiatives.. ................................................. 105 Global Institutions..................................................................................................... 106 Global Policies and Initiatives..................................................................................... 113 Chapter Eight: Regulatory Trends and Policies..................................................................... 122 Mechanisms for Driving Behavior Change.. .................................................................... 123 Mechanisms for Addressing Economic Issues.................................................................. 125 Mechanisms for Addressing Environmental Issues........................................................... 127 Mechanisms for Addressing Social Issues....................................................................... 134 Chapter Nine: Standards, Protocols, and Certifications......................................................... 143 Standards and Protocols.............................................................................................. 144 Certifications & Labeling............................................................................................ 152 Scorecards. . ............................................................................................................... 161 Chapter Ten: Technology, Tools, and Innovations . . ............................................................... 167 Technologies and Innovations...................................................................................... 168 Tools and Techniques. . ................................................................................................ 177 Case Studies.............................................................................................................. 183 Glossary of Terms................................................................................................................ 190 Acronyms............................................................................................................................ 227
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INTRODUCTION ISSP SUSTAINABILITY PROFESSIONAL CERTIFICATION Background The field of sustainability has grown exponentially in the past three decades, as businesses, nonprofits, and governments worldwide have adopted sustainable practices, creating the need for more professionals with the expertise to guide them. In response to this demand, thousands of people from a variety of backgrounds across multiple disciplines have taken on the work of “sustainability professional.” While practitioner diversity has enriched and informed the growing field, it has also created a need to qualify the accepted skills, knowledge, and capabilities expected of a sustainability professional. As a result, many have called for the development of a rigorous set of KSAs (knowledge, skills and attributes) to guide performance. To build the profession’s credibility in the eyes of clients, colleagues, employers, and the public, ISSP has taken a central role in developing universal standards of competency, based on KSAs that consistently meet the highest expectations of the profession. ISSP was formed in 2007 with the mission to empower professionals to advance sustainability in organizations and governments throughout the world. The organization has taken on the task of certifying sustainability professionals as it aligns with our vision and mission. In ISSP’s early years, this meant we provided training for professional development at all levels, since there were few institutions of higher learning with sustainability curricula. Now that colleges and universities have expanded their sustainability training programs, ISSP is leading the sustainability community in developing the standards of practice for sustainability professionals.
2015 Beta Launch
2016 First Cohort Certified
2014 Board Commits 2013 Body of Knowledge 2010 Competency Study
Figure 1: ISSP Certificate Progress (Illustration Courtesy of ISSP)
Research behind the Credential • In 2010, ISSP published the results of its research aimed at identifying the competencies most critical to the successful performance of sustainability professionals. • In 2013, we published the first “Sustainability Practitioner: Body of Knowledge” for the profession. It outlined the Knowledge, Skills and Attributes (KSAs) a professional must demonstrate to assure successful completion of each job task. This job task analysis (JTA) formed the basis for the certification scheme, reflecting the input of ISSP members and other sustainability professionals from around the world.
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• In 2014, our Spring Survey of over 800 sustainability professionals showed that 70% were in favor of creating a certification. • Our research continued in 2015 when we conducted a Sustainability Hiring Survey to see what knowledge, skills and abilities were in demand for organizations looking to hire sustainability professionals.
Launching the Exams • Based on this foundational research the ISSP Board of Directors voted unanimously, at its November 2014 meeting, to create a credentialing process for sustainability professionals. • In 2015, ISSP conducted a first round of Beta tests for the Sustainability Associate (ISSP-SA) and Certified Sustainability Professional (ISSP-CSP) Certification programs. Over 160 members of the sustainability field participated in helping us refine the Certification process and bring it closer to a 2016 launch. • As a result of the high interest in our first round of Beta testing, in 2016, ISSP conducted a second round of Beta testing for the Sustainability Associate (ISSP-SA) exam. We also launched an Education Partner Program to recognize organizations that provide high quality sustainability education and training, including newly developed preparatory courses for the ISSP Certification exams. • This Study Guide has been developed for the official launch of the ISSP-SA exam in November 2016.
Levels of Certification The ISSP Sustainability Certification has been designed by sustainability practitioners, for sustainability practitioners, through global collaboration and expertise, to advance the practice of sustainability. It has been designed following the internationally recognized ISO 17024 standard, which sets out criteria for an organization’s certification program for individual persons. Adhering to the ISO 17024 standard ensures that the ISSP Certification is a global benchmark for sustainability professionals, providing industry-recognized credentials that can be carried across national borders. There are two levels of ISSP Certification available to sustainability practitioners. Maintaining the Certification at either level will require ongoing professional development activities. • Sustainability Associate (ISSP-SA): Individuals who are new to the field of sustainability but have sufficient education and training to pass a test on basic knowledge and understanding of key sustainability concepts. Note: the ISSP-SA is a prerequisite for the ISSP-CSP. • Certified Sustainability Professional (ISSP-CSP): Experienced sustainability practitioners who demonstrate a combination of sustainability-related work experience and formal education. It should be noted that the only correct way to abbreviate the credentials is as ISSP-SA and ISSP-CSP respectively.
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t jus 2.
e h ol d e Stak r
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The ISSP Sustainability Professional Credentials provide assurance that a professional has the knowledge, skills, and abilities (KSAs) required of sustainability practitioners—regardless of specialization, experience, or geographic location. These KSAs have been organized into six interconnected “domains” in the Body of Knowledge (illustrated in Figure 2 to the right). ISSP’s Sustainability Professional Job Task Analysis (JTA) further specifies the key “job tasks” within each of these domains.
6. A d
THE ISSP SUSTAINABILITY ASSOCIATE (ISSP-SA) CREDENTIAL
1. Core Sustainability Concepts
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A Sustainability Associate (ISSP-SA) is someone who has the En g a g e m e nt minimal knowledge, skills, and abilities of an entry-level susm va en tainability professional, specifically defined as the KSAs outlined t 5. E in the first domain of the Body of Knowledge: Core Sustainability Concepts. To demonstrate this competency, an ISSP-SA candidate must pass a credentialing exam comprised of questions Figure 2: Relationship between Domains of the Body of Knowledge drawn from this first domain. Material drawn from the other (Illustration Courtesy of ISSP) domains comprises the Certified Sustainability Professional (ISSP-CSP) exam. Candidates wishing to acquire the ISSP-CSP credential must successfully complete the ISSP-SA exam as a prerequisite for applying to become an ISSP-CSP. Domain 1: Core Sustainability Concepts Job Task #1.1 – Explain ideas, concepts, and importance of sustainability to various audiences • Demonstrate familiarity with global and local economic, social, and scientific issues, by describing key trends, impacts and perspectives relevant to sustainability • Explain sustainability frameworks and principles • Identify issues of social justice and social impacts • Explain and apply systems thinking • Summarize historically significant events related to sustainability • Describe current trends in and interplay among various sustainability issues • Explain the importance of sustainable practice and how it can contribute to social, environmental, and business objectives Job Task #1.2 – Choose appropriate third-party sustainability resources • List applicable regulatory trends and policies as they relate to sustainability • Demonstrate familiarity with GHG inventorying and its relationship in areas such as buildings, transportation, and materials • Define sustainability claims, eco-labels and certifications • Describe key aspects of the landscape and architecture/hierarchy of global institutions, frameworks and standards relevant to the organization, its sustainability issues and its stakeholders • Identify relevant trends, technologies, and approaches related to common sustainability initiatives
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Sustainability is a very broad topic and, at its most basic, is about systems and systems thinking. As such, it is difficult to create a linear outline of all the topics encompassed in sustainability. Also, as with every system, it can help to view the system structure from different perspectives. As a result, although this Guide follows a different outline than the Job Task Analysis, it does include information from all twelve knowledge areas of Job Tasks #1.1 and #1.2 described above.
THE ISSP-SA STUDY GUIDE The ISSP Sustainability Associate (ISSP-SA) Study Guide provides guidance to credential applicants preparing to sit for the ISSP-SA credentialing exam. This Guide is intended to serve as a refresher of knowledge previously learned through adequate sustainability education. It is not intended to be a comprehensive reference manual for sustainability professionals; rather it is intended to provide a candidate with a deeper dive into the job tasks highlighted by ISSP’s “Sustainability Practitioner: Body of Knowledge”. The content provided in this Guide was developed based on two criteria: 1. What information would a potential employer or client expect a “minimally competent” Sustainability Associate to know, regardless of the industry in which the professional is employed?1 2. Would the information be relevant to a sustainability practitioner regardless of their geographic location? If local or regional in nature, does the topic have international relevance? Note that while this Study Guide is intended to be as global and diverse as possible, in some cases the US standard is listed. Readers are encouraged to research the equivalent in their local context. Note that we have made every attempt to provide accurate, up-to-date information to our readers, and to provide enoughinformation to find suggested resources using a good search engine. However, in this rapidly changing world, websitesregularly change and new information comes to light. Therefore, we encourage readers to reach out to us at:
[email protected] and provide us with feedback.
HOW TO USE THIS GUIDE In the interest of providing a candidate with the most up-to-date information, the Study Guide’s references were selected for their credibility and current relevance. The sustainability field is still young and constantly growing and expanding. The ISSP-SA exam and this Study Guide will change and grow with the field. We welcome your suggestions for improvement. The body of the Study Guide is organized as follows: Chapter 1: Issues, Trends, Impacts, and Perspectives Chapter 2: Social Justice, Impact, and Responsibility Chapter 3: Frameworks and Principles Chapter 4: Systems Thinking and Interdependencies Chapter 5: Benefits of Sustainability Practices 1
“Minimally competent” is the terminology used to describe those who achieve the minimal passing grade of a credentialing exam.
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Chapter 6: Historical Background and Events Chapter 7: Global Institutions, Policies, and Initiatives Chapter 8: Regulatory Trends and Policies Chapter 9: Standards, Protocols, and Certifications Chapter 10: Technology, Tools, and Innovations Each Chapter begins with a table of contents outlining the material that is covered in the chapter. As a study aide, you will also find certain Key Concepts are hyperlinked to the glossary where you will find the definition. In some areas, you will find textboxes that suggest Related Topics that indicate linkages between concepts. (Please use your PDF reader’s search function to locate these terms throughout the document.) And at the end of each section, you’ll find links to high-quality, third-party sources where you can go to gain a deeper knowledge of the subject. Although the ISSP-SA-level competency focus is on the first Domain (Core Sustainability Concepts), the ISSP-SA Study Guide has gone beyond merely providing a glossary list of concepts that need to be understood at the SA level. It includes references to additional material in order to be more useful as a source for professionals of SA-level knowledge and resources. The Key Concepts identified in the Study Guide help the user by identifying in the text the concepts defined in the Study Guide’s Glossary, which are derived from the ISSP’s Core Sustainability Concepts. Following the 10 chapters listed above, you will find an appendix that includes a Glossary of Terms and a List of Acronyms that support the information in the ten Chapters.2 Keep in mind that knowledge alone does not make a sustainability professional good at his or her job. While it might be tempting to flip to the back of this Guide to memorize the facts conveniently provided in table format, an ISSP Sustainability Associate (ISSP-SA) needs to understand how things fit together as a whole. The chapters, taken collectively, provide important context. Having an understanding of how all the pieces fit together, and how to tailor the tools in your toolbox, are key to becoming successful sustainability professionals. Note, that ISSP also has produced a set of flashcards, based on the appended Glossary of Terms that readers may find helpful when studying for their credentialing exams. They can be purchased directly from us on our website through the following link: https://www.sustainabilityprofessionals.org/civicrm/event/info?id=5769&reset=1 2
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CHAPTER ONE Issues, Trends, Impacts and Perspectives Chapter Table of Contents Purpose. . ...................................................................................................................................7 Overview..................................................................................................................................7 Defining Sustainability and Sustainable Development.....................................................................7 Valuing All Forms of Capital.. .......................................................................................... 8 Weak versus Strong Sustainability.................................................................................... 8 Limits to Growth.. .......................................................................................................... 9 The I=PAT Equation.. ................................................................................................... 10 The Commons............................................................................................................. 11 Interconnectivity......................................................................................................... 11 Key Social Issues...................................................................................................................... 11 Basic Human Needs...................................................................................................... 12 Equity . . ....................................................................................................................... 13 Human rights . . ............................................................................................................. 13 Justice – Social and Environmental. . ............................................................................... 14 Key Environmental Issues.......................................................................................................... 15 Climate Change........................................................................................................... 15 Greenhouse Effect................................................................................................. 15 Atmospheric Concentrations of GHGs..................................................................... 16 Global Warming Potential and CO2 Equivalents.. ...................................................... 17 Total Emissions and Emissions Ratios....................................................................... 17 Growing Methane Contributions............................................................................. 18 Global Temperatures. . ............................................................................................ 18 Ocean Acidification.............................................................................................. 19 Rise in Sea Levels................................................................................................. 19 Decline of Natural Capital . . ........................................................................................... 20 Biodiversity, Habitat, Land Use............................................................................... 20 Toxins in the Environment..................................................................................... 21 Air Pollution........................................................................................................ 22 Atmospheric Ozone............................................................................................... 23 Water.................................................................................................................. 23 Key Economic Issues................................................................................................................. 24 Setting Economic Priorities........................................................................................... 24 Accounting for Externalities................................................................................... 25 Managing for the Long-Term. . ................................................................................. 25 Measures of Progress.............................................................................................. 26 Sustainable Economic Models........................................................................................ 27 Steady-State Economy........................................................................................... 27 Circular Economy . . ................................................................................................ 27 Sustainable Markets . . .................................................................................................... 28 Sustainable Consumption....................................................................................... 28 Lifestyles of Health and Sustainability (LOHAS). . ..................................................... 29 Additional Resources................................................................................................................ 31 Chapter One Endnotes......................................................................................................... 32
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PURPOSE A sustainability professional must be able to understand a range of topics that provide economic, social, global and local context, as well as scientific sustainability-related issues, including trends, impact, and perspectives. They must also be able to explain the threats and opportunities these topics pose to business, government, and communities in a manner that is relevant to each of a wide variety of stakeholder groups.
OVERVIEW This chapter provides an overview of sustainability and some of the most pressing social, environmental, and economic sustainability issues. The first half of this chapter reviews key terms and concepts.
Defining Sustainability and Sustainable Development
“Development involves a progressive transformation of economy and society. A development path that is sustainable in a physical sense could theoretically be pursued even in a rigid social and political setting. But physical sustainability cannot be secured unless development policies pay attention to such considerations as changes in access to resources and in the distribution of costs and benefits. Even the narrow notion of physical sustainability implies a concern for social equity between generations, a concern that must logically be extended to equity within each generation.” — Brundtland Commission, 19871
There may be as many definitions of sustainability and sustainable development as there are groups trying to define it. Many have defined sustainability in general terms relating to the ability of maintaining something indefinitely. For example, “sustainability is a set of conditions and trends in any given system that can be continued indefinitely.”2 However, sustainability mustn’t be confused with stasis or simply maintaining the status quo. Sustainability economist, Herman Daly used four operational principles to define sustainability more precisely: 1. Human systems have to be within the limits of the carrying capacity of natural systems 2. Technological progress requires increasing efficiency rather than throughput 3. Renewable resources cannot be driven to extinction (either by over extracting or by emitting wastes that exceed the capacity of ecosystems to assimilate the emissions) 4. Nonrenewable resources should only be used at a rate equal to or less than the rate at which substitutes are created3 However, the most widely quoted remains the one provided in the conclusion of the Brundtland Commission’s “Report of the World Commission on Environment and Development: Our Common Future.” “Sustainable development is development that meets the needs of present without compromising the ability of future generations to meet their own needs. It contains within it two key concepts: • the concept of ‘needs’, in particular the essential needs of the world’s poor, to which overriding priority should be given; and • the idea of limitations imposed by the state of technology and social organization on the environment’s ability to meet present and future needs.”4 Brundtland further concludes that “...the goals of economic and social development must be defined in
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terms of sustainability in all countries—developed or developing, market-oriented or centrally planned. Interpretations will vary, but must share certain general features and must flow from a consensus on the basic concept of sustainable development and on a broad strategic framework for achieving it.”5 Interpretations have indeed varied. However, at their foundations, most definitions include the concepts of: • Equity and fairness • Operating within the limits of the world’s ecosystems • Having a long term, multi generational view • Understanding the interconnections between the economy, society, and environment At its most basic level, sustainability is the goal of sustainable development.
Valuing All Forms of Capital “What might be called ‘industrial capitalism’ does not conform to its own accounting principles. It liquidates its capital and calls it income. It neglects to assign any value to the largest stocks of capital it employs – the natural resources and living systems, as well as the social and cultural systems that are the basis of human capital.” — Paul Hawken, Amory Lovins, and L. Hunter Lovins, 19996 The term “capital” is most commonly used to refer to money and material goods. However, in the context of sustainability, there are a number of different types of capital that need to be considered. The landmark book Natural Capitalism (1999) suggests four types of capital: • Financial capital – cash, investments, and monetary instruments • Manufactured capital – infrastructure, machines, tools, and factories • Human capital – labor and intelligence, culture, and organization • Natural capital – resources, living systems, and ecosystem services7 The sustainability challenge is that humans tend to focus on generating, improving, and enhancing financial and manufactured capital at the expense of other types of community capital. Human and social capital can be depleted, for example, by failing to sufficiently invest in worker safety, employee compensation, or community education, weakening the fabric of a community on which all enterprises depend. A crisis is also looming due to rapid reductions in natural capital that cannot be made up by other capital forms. As described in Natural Capitalism: “Our continuing progress is restricted not by the number of fishing boats but by the decreasing numbers of fish; not by the power of pumps but by the depletion of aquifers; not by the number of chainsaws but by the depletion of primary forests.”8
Weak versus Strong Sustainability Understanding that natural capital cannot be replaced with other forms of capital can be understood as the concepts of weak and strong sustainability.9 Weak sustainability is the concept that manufactured capital of equal value can take the place of natural capital while strong sustainability is the concept that the existing stock of natural capital must be maintained and enhanced because the functions it performs cannot be duplicated by manufactured capital. Examples of natural ecosystem services that would be
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very difficult to replace with built capital include: • the ozone layer, which has been damaged by the use of man-made chlorofluorocarbons (CFCs), and • the thermohaline circulation, the large scale oceanic circulation systems such as the Gulf Stream, which have a large impact on the Earth’s weather patterns and are endangered by climate change. Pioneering ecological economists such as E.F. Schumacher stressed that the environment is actually a critical source of capital for economic activity and development: “… we are estranged from reality and inclined to treat as valueless everything that we have not made ourselves. … Far larger is the capital made by nature and not by man – and we do not even recognize it as such. Let us take a closer look at this ‘natural capital.’ First of all, and most obviously, there are the fossil fuels. No one, I am sure, will deny that we are treating them as income items although they are undeniably capital items. If we treated them as capital items, we should be concerned with conservation; we should do everything in our power to try and minimize their current rate of use…”10 In addition to proper valuation of resources such as fossil fuels, fish, and timber, this concept has been developed to include valuation of the potentially irreplaceable services of healthy natural systems, as well as the promotion of economic development strategies that embrace investments in such natural capital. Such “ecosystem services” include nature’s ability to purify air and water, protection from the sun’s harmful ultraviolet waves, and “aesthetic beauty and intellectual stimulation that lift the human spirit.”11 In 1997, when the annual global gross national product (value of all economic output globally) was estimated to be US$18 trillion per year, the annual value of all Earth’s ecosystem services was estimated to be US$33 trillion12. An updated valuation in 2011 increased the estimate to US$125 trillion per year. A key point of natural capital valuation estimates is that traditional economic measures do not include these critical contributions, creating a skewed perspective of both present and future economic health.13 The Economics of Ecosystems and Biodiversity (TEEB) is a global initiative that continues the effort to understand ecosystem value by focusing on “making nature’s values visible.” Their mission is to mainstream the values of biodiversity and ecosystem services into decision-making.14
Limits to Growth Related to the concepts of weak and strong sustainability is the concept of limits to natural resources, including ecosystem services, and the problem of rapidly increasing rates of use of those resources, generally referred to as limits to growth. Pioneer sustainability thought leaders identified this system archetype as a fundamental flaw in the relationship between the human economy and the Earth’s ecological capacities. Although the Earth is finite, the demands placed on it by society are growing at an exponential rate. An exponential rate of growth means that a given measured item grows every year, year after year, like the compounding interest of a bank savings account. This exponential growth therefore causes a reinforcing loop that continually feeds back into the system, building upon itself at a faster rate than most people expect. A $100 savings account earning 3% compounded interest, for example, would double in about 24 years (seven years sooner than it would take the same account accruing 3% simple interest per year). At 8% annual growth, the original amount would double in 9 years. The economist, Al Bartlett provides a rule-of-thumb formula for estimating this doubling time, given a
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specific rate of growth: “…[T]ake the number 70, divide it by the percent growth per unit time and that gives you the doubling time. So our example of 5% per year, you divide the 5 into 70, you find that growing quantity will double in size every 14 years.”15 The conundrum of exponentially growing human population and economic activity occurring on a finite planet was first explored by economist Herman Daly and the authors of the 1972 book The Limits to Growth.16 This book concluded that humankind faced two core problems—the Earth’s limits would be reached within 100 years, and the likely scenario when they are reached would be a disastrous “overshoot and collapse”: “In any finite system there must be constraints that can act to stop exponential growth. These constraints are negative feedback loops. The negative loops become stronger and stronger as growth approaches the ultimate limit. . . . In the world system the negative feedback loops involve such processes as pollution of the environment, depletion of nonrenewable resources, and famine. “The delays inherent in the action of these negative loops tend to allow population and capital to overshoot their ultimately sustainable levels. The period of overshoot is wasteful of resources. It generally decreases the carrying capacity of the environment as well, intensifying the eventual decline in population and capital.”17 Avoiding the overshoot and collapse scenario for Earth’s ecosystems is a critical outcome of sustainability efforts worldwide.
The I=PAT Equation The IPAT equation is a conceptual model used to describe the relationship between the three main drivers of humanity’s Earth impacts—population, affluence, and technology. Developed by Paul and Ann Ehrlich of Stanford University, this model suggests that humanity’s impact on the systems that sustain our existence can be approximated by the following equation:
RELATED TOPICS • Factor 4 • Factor 5 • Factor 10
I=PxAxT Where: • I = society’s negative impact on the ecosphere • P = population size • A = affluence of average individual (consumption) • T = technology and services driving consumption18 The equation illustrates that, given humanity’s general unwillingness to limit growth through regulations and that humanity generally seeks to increase the affluence of individuals, it becomes critical to reduce the impact multiplier of technology. This can be accomplished through sustainable energy sources and increasing the efficiency with which materials and energy are used. Therefore a key competency of the sustainability professional is to support the rapid adoption of more sustainable technologies.
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The Tragedy of the Commons Another archetypical system structure that challenges sustainable development is “the tragedy of the commons” whereby common resources are shared by all and owned by none. The atmosphere, for example, is not owned by a specific individual, organization, or government, nor are the ocean currents, clean air, or the pollination provided by honey bees. The problem is that private entities have incentives to use or take from the commons in ways that promote private gain while causing decline of the commons. However the decline everyone feels is small compared to the private gain obtained by unsustainable use of the commons.19 There are some examples where governments have acted both individually (e.g., an individual nation’s efforts to preserve natural areas in parks) and collectively through international agreements to attempt to manage the Earth’s commons for sustainability. Examples of collective action include: • Montreal Protocol to regulate ozone depletion20 • Kyoto Protocol and The Paris Agreement to regulate climate change21 • Law of the Sea and related global efforts to regulate marine mammals and fisheries22 • The Biodiversity Indicators Partnership and related biodiversity preservation efforts23
Interconnectivity Both “Limits to Growth” and “The Tragedy of the Commons” are examples of challenges that arise because the world is a system with complex interconnections. Individuals live, work, and play in their communities. The economic viability of institutions depends on the labor provided by individuals who are also customers. Governments serve, protect, and defend order within society so that people and businesses can thrive. And this collective society is wholly dependent on Earth’s ability to support daily activities. Creating a sustainable economic, social, and environmental world requires whole systems thinking. Unlike the standard Venn diagram that shows these spheres as only overlapping in a small area, a true representation of the Earth’s system is one of concentric circles—with the human economy existing within the social sphere, which in turn exists within the environmental sphere.
RELATED TOPICS • Systems Thinking
Economy Society Nature Figure 3: Earth’s system represented by concentric circles. (Courtesy of ISSP)
KEY SOCIAL ISSUES “While sustainable development is intended to encompass three pillars, over the past 20 years it has often been compartmentalized as an environmental issue. Added to this, and potentially more limiting for the sustainable development agenda, is the reigning orientation of development as purely economic growth. This has been the framework used by developed countries in attaining their unprecedented levels of wealth, and major and rapidly developing countries are following the same course.” — John Drexhage and Deborah Murphy, 201024 Although most frequently assumed to be about the environment, sustainability at its most basic is a
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social problem. After all, individuals and communities lacking the resources to meet basic needs don’t have the luxury of applying long-term thinking to solve immediate, life threatening issues. Key to addressing such social issues as hunger and violence is having an understanding of how these issues impact different stakeholder groups. Note that, since social issues are at the crux of sustainability issues, key elements of the problems are discussed in this section and a more in depth discussion is provided in Chapter 2.
Basic Human Needs “Overcoming poverty is not a gesture of charity. It is an act of justice. Like slavery and apartheid, poverty is not natural. It is man-made and can be overcome and eradicated by the actions of human beings.” — Nelson Mandela, 200525 Social science, on the other hand, tends to be ephemeral—how do we actually define present and future “need”? Karl-Henrik Robèrt, founder of The Natural Step, defines “needs”, in the basic sense, as “inborn requirements that need to be satisfied in order for people to remain healthy—physically, mentally, and socially.”26 They are not things that simply make us happy or satisfy our wishes. Economist Manfred Max-Neef identified nine fundamental human requirements that help explain dominant human motivations, which depend on which needs have been previously met. From most basic to advanced—Subsistence, Protection, Affection, Understanding, Participation, Recreation, Creation, Identity and Freedom.27 These are similar to psychologist Abraham Maslow’s hierarchy of needs, typically expressed as a pyramid (shown below) with five types of needs.28
Figure 4: Maslow’s Hierarchy of Needs (Illustration Courtesy of H K Allison Projects For Sustainability)
The necessity of reducing poverty has been recognized by most sustainability frameworks and government sustainability programs. This is because people living in poverty have great difficulty thinking or acting for the long-term sustainability of their assets and the planet. In the words of the United Nations (UN):29 “Eradicating poverty in all its forms and dimensions, including extreme poverty, is the greatest global challenge and an indispensable requirement for sustainable development. The 2030 Agenda for Sustainable Development resolves to free the human race from the tyranny of poverty and to heal and secure our planet.”
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As poverty is the result of multiple environmental and social factors, there is no “silver bullet” that will quickly eradicate it. It will take a coordinated effort that addresses the ability of the most marginalized people in societies to find a means of contributing productively in exchange for income. In cases where this is not possible, governments and civil society will need to institute mechanisms to support such individuals. In addition to a focus on the individuals within a specific community or country, achieving sustainable development requires addressing the disparity between countries themselves. Leading-edge actions have included the Clean Development Mechanism of the Kyoto Protocol’s implementation in the European Union (EU) that allowed greenhouse gas (GHG) reduction investments in developing countries to count towards EU requirements, and the adoption of a national sustainability goal in 2005 by Norway to improve imports from Less Developed Countries (LDCs) in Africa as part of global poverty reduction.30
Equity The question of equity—addressing the disparity between the “haves” and “have-nots”—permeates society. Such global challenges are found on a national level too, with the rich getting richer, the poor getting poorer, and the vast middle tending to disappear. As witnessed by Britain’s recent “BREXIT” vote (their decision to leave the EU), cultures that fail to tackle inequality find themselves face-to-face with political upheaval.31 As happened with the “Arab Spring”, when non-democratic, authoritarian governments fail to address such issues, turmoil and violence may ensue. Across cultures, society struggles to accept and integrate minority populations without subsuming individuality. Differences of religion, sexual orientation, and economic status create insider and outsider groups that fail to communicate on issues of common ground. Although some progress has been made in addressing nondiscrimination, the need to belong (with its corollary behavior of isolating those that don’t) is a key sustainability issue. Unsurprisingly, with such societal challenges, organizations and local communities also must tackle equity and diversity challenges. As it happens, those organizations that embrace diversity are stronger and more resilient. For example, according to R. Paul Herman of HIP Investors: “When companies create quantifiable value for society as well as shareholders, those firms can be more profitable and become the foundation of a stronger portfolio. Across all investment types (cash, fixed income, equities, venture, real estate), human, social, and environmental impact can be quantified, scored and valued—and linked to profit and shareholder value.”32
Human rights “The idea of human rights is as simple as it is powerful: that people have a right to be treated with dignity. Human rights are inherent in all human beings, whatever their nationality, place of residence, sex, national or ethnic origin, colour, religion, language, or other status. Every individual is entitled to enjoy human rights without discrimination. These rights are all interrelated, interdependent and indivisible.” — The United Nations, 201533 The United Nations’ 1948 Universal Declaration of Human Rights (UDHR) was the first attempt to codify into international law a basic set of rights to which all humans are entitled. More than 170 nations have affirmed their commitment to upholding these rights. For workers, these rights include “four categories of principles and rights: freedom of association and the right to collective bargaining; the
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elimination of compulsory labour; the abolition of child labour; and the elimination of discrimination in respect of employment and occupation.”34 This body of international law and principles provides a reference point for what constitutes basic human rights. Guest worker programs can result in near-slavery conditions. For example, a Bloomberg Businessweek report in August 2016 estimated that nearly 16,000 guest workers from Asia were functionally stranded in Saudi Arabia because of construction slowdowns, who had not received compensation for up to eight months, and were being housed in small concrete rooms where temperatures can reach 122F.35 Anti-Slavery International reports that at least 21 million people are in forced labor worldwide, the majority (56%) in Asia, followed by Africa and Latin America/Caribbean, and over 3 million in the “developed economies” and the EU.36 Another key human rights issue is how indigenous peoples are treated. Non Governmental Organization (NGO) advocacy group FIAN reports that: “In the majority of cases indigenous peoples face hunger because their access to land is denied or their livelihoods are destroyed, for example, by public development projects, mining projects or the current agrofuels boom. The rights of indigenous people, especially their collective land rights, are internationally protected by Convention 169 of the International Labour Organization (ILO) and the UN Declaration on the Rights of Indigenous Peoples (UNDRIP). However, despite legal protection, the human rights of indigenous peoples are often violated.”37
Justice – Social and Environmental Social justice variously refers to fair wages or lack of access to social and economic assets by all people. According to the Center for Economic and Social Justice:38 “One definition of justice is ‘giving to each what he or she is due.’ … Social justice encompasses economic justice... [It also] imposes on each of us a personal responsibility to work with others to design and continually perfect our institutions as tools for personal and social development.” The concept of environmental justice deals with the inextricable relationship between people and their environment. The US EPA (Environmental Protection Agency) defines it as: “the fair treatment and meaningful involvement of all people regardless of race, color, national origin or income with respect to the development, implementation and enforcement of environmental laws, regulations and policies… It will be achieved when everyone enjoys the same degree of protection from environmental and health hazards, and equal access to the decision-making process to have a healthy environment in which to live, learn, and work.”39 The EU has expressed similar views, and in 1998 adopted the Aarhus Convention, which outlines a set of rights related to environmental justice. The Convention provides for: • access to environmental information. • public participation in environmental decision-making. • access to justice.40 Increasingly, “food security” is also an important component of justice. As defined by the UN: “Food and nutrition security exists when all people, at all times, have physical, social and economic access to sufficient, safe and nutritious food to meet their dietary needs and food preferences for an active and healthy life.”41
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The UN’s Committee on Food Security, which serves as its forum for world food policies, develops and endorses policy recommendations to address this social justice issue. The following Principles for Responsible Investment in Agriculture and Food Systems guide their actions: 1. Contribute to food security and nutrition 2. Contribute to sustainable and inclusive economic development and the eradication of poverty 3. Foster gender equality and women’s empowerment 4. Engage and empower youth 5. Respect tenure of land, fisheries, and forests and access to water 6. Conserve and sustainably manage natural resources, increase resilience, and reduce disaster risks 7. Respect cultural heritage and traditional knowledge, and support diversity and innovation 8. Promote safe and healthy agriculture and food systems 9. Incorporate inclusive and transparent governance structures, processes, and grievance mechanisms 10. Assess and address impacts and promote accountability42 Addressing these social sustainability issues requires that organizations consider and involve a wide range of stakeholders in the decision making process. These include: • Employees • Customers and constituents • Suppliers • Communities up and down the supply chain • Future generations
KEY ENVIRONMENTAL ISSUES Climate Change Greenhouse Effect Earth has a balance of atmospheric gases that absorb and emit infrared radiation. This balance allows the Earth to remain at a temperature where water remains liquid, plants grow, and creatures live in comfort. Scientists believe that the very small concentration of natural GHGs in the upper atmosphere – estimated to be 0.028% of the atmosphere’s content prior to the Industrial Revolution (280 parts per million of carbon dioxide, or CO2) – have made life on Earth as we know it possible by warming the Earth’s surface to about 59°F (15°C). Naturally occurring GHGs include water vapour (H2O), carbon dioxide (CO2), nitrous oxide (N2O), methane (CH4), and ozone (O3). Absent such gases, Earth’s climate would more closely resemble that of Mars, too much of these gases would make it like Venus. When we burn fossil fuels we add GHGs into the atmosphere. Cutting back forests that could reabsorb the newly released CO2, prevents the removal and sequestration of that carbon dioxide. The more fossil fuels burned, the more these warming gases accumulate in the lower
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atmosphere and trap heat from the sun. That trapped heat warms the Earth and changes our climate. The effect is akin to draping a tarp over seedlings in early spring — thus the moniker “greenhouse gases” when referring to the seven warming gases in the atmosphere.43 Weather refers to atmospheric conditions over short periods of time. Climate is the long-term behavior of the atmosphere—an accumulation of weather over time. Although daily weather may appear relatively constant, incontrovertible scientific data shows that Earth’s climate is warming. Due to very small variations in the Earth’s orbit, the climate naturally fluctuates, with seven ice ages in the past 650,000 years. Since the Industrial Revolution, however, human activity has resulted in exponentially increasing greenhouse gases (GHGs) concentrations in the atmosphere. These GHGs include: • CO2 • CH4 • N2O • Sulphur hexafluoride (SF6) • Hydrofluorocarbons (HFCs) • Perfluorinated compounds (PFCs) GHG emissions create a “radiative forcing” towards atmospheric warming and resulting in climate change (also called “climate chaos” because the effects remain fairly unpredictable and localized). The key data points to track are: • Atmospheric concentrations of CO2, the primary GHG by volume, and other GHGs • Total GHG emissions and radiative forcing effects (i.e. global average temperature changes) • GHG emissions ratios relative to population levels and economic activity • Global targets and GHG reductions required to reach global targets
Atmospheric Concentrations of GHGs Atmospheric concentration of GHGs is often expressed as either a total of concentration (parts per million, billion, or trillion) and resulting radiative forcing, or a percentage increase relative to an estimate of the pre-industrial GHG levels. As shown in Table 1, since the start of the start of the Industrial Revolution (circa 1750), the atmospheric concentration of GHGs has increased dramatically. According to the UN Intergovernmental Panel on Climate Change (IPCC): “The primary source of the increased atmospheric concentration of carbon dioxide since the pre-industrial period results from fossil-fuel use, with land-use change providing another significant but smaller contribution.”44
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Tropospheric Concentration Gas
Pre-1750
Recent
% Increase
Carbon dioxide (CO2)
~280 ppm
399.5 ppm
43%
Methane (CH4)
722 ppb
1834 ppm
154%
Nitrous oxide (N2O)
270 ppb
328 ppb
22%
Table 1: Changes in GHG Concentrations of Selected GHGs Over Time45
In recent years, the average annual increase of CO2 concentrations has been 2 parts per million. The current concentration level of CO2 is higher than existed in one million years or longer.46
Global Warming Potential and CO2 Equivalents Because each greenhouse gas captures infrared radiation and reflects it back out into the atmosphere at a different rate, each gas has a different potential to warm the Earth. This is expressed in terms of the global warming potential (GWP) and Table 2, based on data from the IPCC’s Fifth Assessment Report (AR5), shows how the different GHGs compare. The GWP Value is based on the carbon dioxide equivalent (CO2e), a measure used to compare the emissions from various greenhouse gases based upon their global warming potential. For example, the global warming potential for methane over 100 years is 28. This means that emissions of one million metric tons of methane are equivalent to emissions of 28 million metric tons of carbon dioxide. Common name
Chemical formula
100-year GWP values
Carbon dioxide
CO2
1
Methane
CH4
28
Nitrous oxide
N2O
265
Sulfur hexafluoride
SF6
23,500
Nitrogen trifluoride
NF3
16,100
Hydrofluorocarbons
HFCs
4 to 12,400
Other Perfluorinated compounds
PFCs
6,630 to 17,400
Table 2: Global Warming Potential (GWP) Values for 100 year Time Horizon47
Total Emissions and Emissions Ratios According to the UN IPCC, “annual GHG emissions grew on average by 1.0 gigatonne carbon dioxide equivalent (GtCO2e) (2.2%) per year from 2000 to 2010, compared to 0.4 GtCO2e (1.3%) per year from 1970 to 2000.”48 Global energy-related emissions of carbon dioxide stood at 32.1 billion tonnes in 2015 (up from about 15 billion tonnes in 1975), according to the International Energy Agency (IEA).49
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CO2 emissions, however, are not the only GHGs of concern. Since 1970, about 25% of anthropogenic GHG emissions have come from non-CO2 sources.50
Growing Methane Contributions Substitution of natural gas (primarily methane) for more carbon-intensive forms of energy (coal and petroleum) has focused attention on the climate change contributions of the natural gas development and use lifecycle. Methane has a GWP during the first 20 years after its emission that is 84-86 (i.e. 84-86 times worse for climate stability than CO2).51 According to activist/author Bill McKibben “To the extent our leaders have cared about climate change, they’ve fixed on CO2. Partly as a result, coal-fired power plants have begun to close across the country. They’ve been replaced mostly with ones that burn natural gas, which is primarily composed of methane. Because burning natural gas releases significantly less CO2 than burning coal, CO2 emissions have begun to trend slowly downward, allowing politicians to take a bow. “But this new Harvard data, which comes on the heels of other aerial surveys showing big methane leakage, suggests that our new natural-gas infrastructure has been bleeding methane into the atmosphere in record quantities. And molecule for molecule, this unburned methane is much, much more efficient at trapping heat than CO2.”52
Global Temperatures The years 2014 and 2015 set global temperature records (since 1880) as shown in Figure 5; at least nine of the months of 2015 set all-time global temperature records and July 2016 was the hottest July ever recorded (in 136 years).53 Global temperatures in 2015 averaged more than 1 degree Celsius (C), or 1.8 Fahrenheit (F), above pre-industrial levels for the first time. It is estimated that the ocean has absorbed more than 90% of excess heat from global warming since 1970.54 Higher temperatures have caused the polar ice caps to melt (the Arctic ice sheet has shrunk 1.07 square kilometers since 1979), which has led to a rise in ocean levels (19 centimeters between 1901 and 2010) and an increase in severe weather events—at both temperature extremes—across the globe.55
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Figure 5: Change in Global Mean Temperature from 1880 to 201556 (Illustration Courtesy of H K Allison Projects For Sustainability)
Absent immediate and definitive action, experts forecast an increase in global temperatures of 1.4°C/2.5°F to 5.5°C/10°F degrees over the next century.57
Ocean Acidification A secondary effect of the upper atmospheric changes since 1750 is a gradual change in ocean acidification. According to the IPCC, the average ocean has become 30% more acidic in that time and by the end of the 21st century is projected to be approximately 150% more acidic than normal; more acidic than in the past 20 million years. This change is correlated with increasing CO2 concentrations.58 According to the US National Oceanic and Atmospheric Administration (NOAA): “Ocean acidification is expected to impact ocean species to varying degrees. Photosynthetic algae and seagrasses may benefit from higher CO2 conditions in the ocean, as they require CO2 to live just like plants on land. On the other hand, studies have shown that a more acidic environment has a dramatic effect on some calcifying species, including oysters, clams, sea urchins, shallow water corals, deep sea corals, and calcareous plankton. When shelled organisms are at risk, the entire food web may also be at risk.”59 Another problem with the rise in ocean temperatures is coral bleaching, which occurs when the ocean water is too warm and the corals expel the algae that live in the coral tissue, giving it color. When the algae is expelled, the coral turns completely white. If coral bleaching is too severe, the coral can die.
Rise in Sea Levels Climate change and the related rise in ocean temperatures is also causing sea levels to rise—at a rate of 1 to 2.5 millimeters (0.04 to 0.1 inches) per year since 1900, according to NOAA.60 New satellite altimetry technology indicates that this rate has accelerated to 3 millimeters (0.12 inches) per year since 1992.61 Two climate change mechanisms can cause sea levels to rise—seawater expansion due to rising
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ocean temperatures, and increased water volume from melting ice. As a result, scientists predict that, depending on the emissions scenario, the global mean sea level will rise by 25 to 58 centimeters (10 to 23 inches) by the year 2100.62 Furthermore, according to the IPCC AR5, “Shifting biomes, soil carbon, ice sheets, ocean temperatures and associated sea level rise all have their own intrinsic long timescales which will result in changes lasting hundreds to thousands of years after global surface temperature is stabilized.”63 Sea level rise could result in the displacement of 187 million people in low coastal areas this century, with small island states, Africa, and parts of Asia most likely to see coastal abandonment according to a 2011 study.64 Devastated coastal communities will experience mass migration, with residents abandoning their homes due to sea water inundation. This is happening already in island nations such as Fiji and the Solomon Islands65 as well as in developed countries in the wake of severe weather events, such as Hurricane Katrina in the United States (US). These communities will need to implement rigorous adaptation strategies even if climate mitigation solutions are put in place. A less visible problem with sea level rise is saltwater intrusion of coastal aquifers. According to the Florida Oceans and Coastal Council: “Rising sea level will increase the hydraulic backpressure on coastal aquifers, reduce groundwater flow toward the ocean, and cause the saltwater front to move inland, thus threatening to contaminate water-supply wells in coastal areas with seawater.”66
Decline of Natural Capital Biodiversity, Habitat, Land Use In addition to the impacts of climate change on natural capital and ecosystems described above, there are a number of other significant sustainability-related issues with global ecosystems and natural resources related to the impact of human social and economic activity on biodiversity and habitat. A core source of comprehensive information about global trends is the UN’s Millennium Ecosystem Assessment, which concluded that: “Over the past 50 years, humans have changed ecosystems more rapidly and extensively than in any comparable period of time in human history, largely to meet rapidly growing demands for food, fresh water, timber, fiber and fuel. This has resulted in a substantial and largely irreversible loss in the diversity of life on Earth. In addition, approximately 60% (15 out of 24) of the ecosystem services it examined are being degraded or used unsustainably, including fresh water, capture fisheries, air and water purification, and the regulation of regional and local climate, natural hazards, and pests.67 The Global Footprint Network estimates whether human activity is using more land than is available on Earth, including country-by-country measurements. The methodology estimates that humanity now “uses the equivalent of 1.6 planets to provide the resources we use and absorb our waste” and estimates that under a “Business As Usual” scenario, two Earths will be
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required to support humanity by 2030.68 A 2010 International Institute for Sustainable Development (IISD) report estimated that 60% of the Earth’s ecosystem services have been degraded in the past 50 years.69 Natural capital continues to decline globally, as evidenced by the measurements of the Global Footprint Network and the World Wildlife Fund’s Living Planet Report, which documented in 2016 that: • The Living Planet Index shows a decline of 58 per cent between 1970 and 2012 with greatest losses in freshwater environments. • If current trends continue to 2020 vertebrate populations may decline by an average of 67 per cent compared to 1970. • Increased human pressure threatens the natural resources that humanity depends upon, increasing the risk of water and food insecurity and competition over natural resources70
Toxins in the Environment Toxicity refers to the ability of a substance to cause harm, either to humans or the environment in which we live. Toxins may damage individual cells, groups of cells, or an entire organism.71 In some cases, these substances may bioaccumulate in the ecosystem—becoming concentrated as predators consume prey, or persisting over long periods of time. In fact, according to the Stockholm Convention on Persistent Organic Pollutants (POPs), they: • Remain intact for exceptionally long periods of time • Become widely distributed throughout the environment as a result of natural processes involving soil, water, and most notably, air • Accumulate in the fatty tissue of living organisms including humans, and are found at higher concentrations at higher levels in the food chain • Are toxic to both humans and wildlife72 In addition to POPs, volatile organic compounds (VOCs), like formaldehyde, may pose significant health risks. Not only do these substances put the ecosystem at risk, workplace exposure to VOCs or heavy metals, such as lead and mercury, create challenges for organizations as well.73 Global chemicals output grew 84% between 2000 and 2010, with emerging economies accounting for 65% of the increase.74 About 2000 new chemicals (~6 per day) are introduced into the US each year.75 The value of global chemical output grew 24-fold from 1970-2010.76 An estimated 140,000 chemicals are on the EU market, which is a reasonable proxy for a global estimate.77 According to the UN: “While there is extensive evidence of adverse effects of chemicals on human health and the environment, there are also large data gaps. Of the tens of thousands of chemicals on the market, only a fraction has been thoroughly evaluated … a report by the European Chemicals bureau indicated that of approximately 2,500 high-production-volume chemicals, only 14% had sufficient data to comply with the EU’s Dangerous Substances Directive.”78
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As these are man-made substances, they have varying degrees of biodegradability and many are likely building up in living beings and ecosystems, with relatively unknown short- or longterm effects. • Fifty-four percent of the global burden of disease due to chemicals is borne by children under the age of 15. A mother can pass as much as 33% of her chemical body burden to her child–232 toxic chemicals were found in umbilical blood from US newborns.79 • According to the UN, “Many studies document high levels of persistent organic pollutants in wildlife, including aquatic mammals, polar bears, and fish-eating birds.80 Chemicals also create substantial health risks for workers, whether making chemicals or using them. For example, the World Health Organization (WHO) estimates that 125 million people are exposed to asbestos in workplaces, resulting in over 100,000 deaths from exposure per year.81 The Stockholm Convention on POPs initially identified 12 chemicals that human health and the environment need particular protection from; 11 additional POPs were added by 2015.
Air Pollution Air pollution consists of natural (e.g., dust) and man-made substances; pollutants are typically regulated via six “criteria pollutants” that threaten human health—nitrogen dioxide, ozone, lead, particulates, carbon monoxide, and sulfur dioxide. Ozone, a major component of smog, is formed by VOCs interacting with nitrogen dioxide emissions and ambient oxygen. While four of the six criteria air pollutants result from burning activity, VOCs result from evaporation of chemicals or when fossil fuels aren’t burned completely.82 High levels of ozone in the lower atmosphere “are toxic to living systems – crop production, forest growth and human health.”83 According to a global assessment by the US agency NOAA, in North America and Europe many of the problems associated with nitrogen and sulfur pollution “have been substantially reduced over the past decade … largely due to stringent regulations of air pollutant emissions from electric power plants, industry and automobiles.”84 However, Asia continues to have high concentrations of air pollutants that damage human health and degrade sensitive forests and watersheds. According to WHO: “Indoor and outdoor air pollution are both among the leading avoidable causes of disease and death globally, and the world’s largest single environmental health risk … 4.3 million deaths occur each year from exposure to household (indoor) air pollution and 3.7 million deaths are attributable to ambient (outdoor) air pollution, at a high cost to societies.”85 The WHO reports that: “More than 80% of people living in urban areas that monitor air pollution are exposed to air quality levels that exceed WHO limits. While all regions of the world are affected…96% of cities in low- and middle-income countries and 56% of cities in high-income countries, with more than 100,000 inhabitants do not meet WHO air quality guidelines.”86 Global ambient air pollution levels, in urban environments, increased by about 8% from 20082013, though more than one-third of low- and middle-income cities and more than one-half of high-income country cities reduced air pollution levels by more than 5% in five years.87
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Atmospheric Ozone Composed of three atoms of oxygen, ozone exists both at ground level and in the upper atmosphere. The so called “ozone layer” exists in a small concentration of about 3 parts per million in the stratosphere (about 6-30 miles above Earth). It absorbs much of the biologically-damaging ultraviolet sunlight, protecting ecosystems and humans as well as warming the stratosphere. Over some parts of Antarctica up to 60% of ozone is depleted from September to November each year and similar processes have depleted the layer over the Arctic polar region most years.88 Ozone depleting substances, such as chlorine, fluorine, bromine, carbon and hydrogen, are emitted in various concentrations by human activity. For example, Freon, a family of chemicals trademarked by Dupont, are fluoridated compounds previously used in aerosols and refrigerants. Colorless, odorless, nonflammable, and non-corrosive these CFCs were created in the 1930s and used widely in refrigerators and air conditioning equipment.89 In addition, halons have been used in fire suppression systems. While relatively nontoxic, when emitted into the atmosphere these substances absorb energy, forcing their molecules to split apart through a process of “photochemical dissociation.”90 Implicated in the 1970s as contributing to depletion of the atmospheric ozone layer, CFCs became banned as part of the Vienna Convention for the Protection of the Ozone Layer and the subsequent Montreal Protocol agreement. This agreement called for phasing out the use of chemical compounds with a high ozone depleting potential (ODP), including: • Chlorofluorocarbons (CFCs) • Halon • Carbon tetrachloride (CCl4), Methyl chloroform (CH3CCl3) • Hydrobromofluorocarbons (HBFCs) • Hydrochlorofluorocarbons (HCFCs) • Methyl bromide (CH3Br) • Bromochloromethane (CH2BrCl)91 The success of the Montreal Protocol has been well documented, with NASA first reporting that the hole in the ozone was beginning to recover in 2006.92 According to NOAA, “as atmospheric amounts of chlorine and bromine have stabilized, a further worsening of ozone depletion appears to have been avoided. Continued declines in ozone-depleting gases are expected to allow for a recovery of the ozone layer but not until the middle of the century.”93
Water The world is awash in unsustainable water use, degrading land-based freshwater systems, ocean water systems, and overall ecosystem health. Global water withdrawals have approximately tripled from 1950-2010.94 The UN projects that by 2025, 1.8 billion people may be living in countries or regions with absolute water scarcity, and with climate change, almost half the world’s population may be living in areas of high water stress by 2030.95
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According to Sandra Postel of the Global Water Policy Project: “An unsettling number of large rivers are now so overtapped that they discharge little or no water to the sea for months, or years, at a time. Lakes and wetlands are shrinking, and crucial aquifers are being depleted. Some 10% of the global food supply today depends on the unsustainable use of groundwater. “At the same time, basic human needs for water continue to go unmet. Nearly 800 million people – about 11% of humanity – lack access to safe drinking water… “When it comes to preserving ecosystem health and services, most of the trends are going in the wrong direction. In North America, 700 freshwater fish species (39% of the total) are imperiled, nearly double the number in 1989.”96 Freshwater problems have resulted from water pollution and excessive demands on watersheds, including consumptive water use for power plant cooling that removes watershed water from reuse downstream—permanently removing approximately half the water diverted.97 Agricultural water users typically battle both geographic mismatch and timing mismatch of water necessary for irrigation. A 2010 study estimated that globally, 283 cubic kilometers of underground aquifers are being depleted annually, demonstrating currently unsustainable practices.98 Water use has been traditionally underpriced, leading to less efficiency and more overuse. According to the International Monetary Fund: “Water use is found to negatively correlate with water cost (e.g. Denmark has the highest costs, and least use per capita) suggesting a role for price signals to rationalize water consumption. Public utilities in many countries set water prices below the cost recovery level, creating incentives for overuse and underinvestment. . . . Water subsidies provided through public utilities are estimated at about $456 billion; they are also inequitable, disproportionately benefiting upper-income groups.”99
KEY ECONOMIC ISSUES Operating in a finite world poses great challenges and organizations face a critical imperative to take action. Social tension has heightened. The decline in quality and quantity of natural capital is constricting resource availability. Unless businesses respond, they put their license to operate at risk. Understanding the types of economic changes that are needed and how enterprises can become more profitable by adopting sustainability practices is important knowledge for the sustainability professional.
Setting Economic Priorities “The key to restructuring the economy is to get the market to tell the truth through full-cost pricing. If the world is to move onto a sustainable path, we need economists who will calculate indirect costs and work with political leaders to incorporate them into market prices by restructuring taxes.” — Lester R. Brown, 2012100
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Accounting for Externalities
RELATED TOPICS
The global economy is set-up for continual economic • Pigouvian Tax growth on a finite planet. In theory, market feedback mechanisms would help the economy adjust to sustainability challenges with price signals indicating when ecological systems are declining or vital resources are becoming scarce. However, because of price externalities that cause prices to not tell the truth, and the structures of global markets for finite resources that delay feedback to the market system, the market’s signals do not result in timely adjustments towards a sustainable economy, especially when future impacts are distant and long-lasting, as with climate change. Economists are in wide agreement that a fundamental flaw of market-based economies is that prices do not reflect externalities. As noted by free-market economist Milton Friedman, “An externality is the effect of a transaction . . . on a third party who has not consented to or played any role in the carrying out of that transaction.”101 Inherently, this means that everything is likely to be underpriced; externality estimate studies have found that the full-cost price of coal-fired electricity, for example, should be $0.18-$0.20 per kilowatt hour – several times what utilities pay. A critical part of the externality problem is that full-cost pricing could have dramatic effects on the prices of some products/services and little on others – the problem being the uncertainty of calculating these effects. Prices are the universal language of an economy. If they aren’t providing an accurate picture of the life cycle cost of production throughout their value chains, resources will be inefficiently allocated to other products or services. This provides an unfair competitive advantage to the subsidized merchandise—drawing investment in resource depleting practices. In the highly competitive global market economy, corporations must maximize externalizing of costs to compete on price. Former CEO and sustainability leader Ray C. Anderson described the corporation’s incentive as to “externalize any cost that its unwary or uncaring public will allow it to externalize.”102 A global approach is likely needed and even preferred by businesses: “For nations to factor these externalities into the costs of doing business is probably the most important correction necessary in current market systems. This basic defect can be mended by a variety of instruments. Ultimately, however, business and governments must undertake the process in an internationally harmonized manner.”103 By not including externalities in prices, the economy effectively subsidizes less sustainable products and services–making them more competitive in the marketplace. For this reason, accounting for externalities is an imperative if society wants to achieve sustainability.
Managing for the Long-Term Setting short-term economic incentives also sets market priorities that work against successful sustainable development. In many cases this short-term bias derives, understandably, from the necessity of maintaining a positive cash flow. Small businesses may need to meet payroll, while governments may be restricted from borrowing by their charters. As noted by the UN Global Compact, “Short-termism in investment markets is a major obsta-
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cle to companies embedding sustainability in their strategic planning and capital investment decisions.”104 A 2011 survey of 642 international sustainable business experts found that 88% “see pressure for short-term financial results as a barrier to businesses becoming more sustainable.”105 Thus, the economic infrastructure of society needs to take a long term perspective, to make decisions based on their ultimate impact, if we are to provide for future generations. Many critical sustainability actions can address long term declines in, or risks to, natural or human capital potentially without strong short-term return-on-investment (ROI). Sustainability practitioners can help pave the way.
Measures of Progress “If ever there was a controversial icon from the statistics world, GDP is it. It measures income, but not equality. It measures growth, but not destruction, and it ignores values like social cohesion and the environment. Yet, governments, businesses and probably most people swear by it.” — OECD, 2004106 There is no more universally relied upon measure of a country’s progress or quality of life than Gross Domestic Product (GDP), yet it was never intended to measure either. It was created in the late 1930s as a way to measure production capacity and only includes monetary transactions related to the production of goods and services. The use of GDP as an indicator of progress and quality of life encourages unsustainable practices, however. “By measuring only market economic activity ...GDP ignores changes in the natural, social, and human components of community capital on which the community relies for continued existence and wellbeing. As a result, GDP not only fails to measure key aspects of quality of life; in many ways, it encourages activities that are counter to long-term community well-being. Of particular concern is that GDP measurement encourages the depletion of natural resources faster than they can renew themselves.”107 Two movements that began in the 1970s have aimed to “redefine progress” by providing (1) refined measures of economic progress that better reflect true costs of economic activity; and (2) quality-of-life measurements that supplement economic measures. In 1989, Herman E. Daly and John B. Cobb proposed the Index of Sustainable Economic Welfare (ISEW) as an alternative to the GDP. The ISEW was further refined and renamed the Genuine Progress Indicator (GPI) in 1995. Both of these indicators adjusted GDP by measures (both positive and negative) of economic welfare including income distribution, costs of commuting, loss of farmland and wetlands, etc. Comparing GDP with ISEW from 1950 to 1986, Daly and Cobb found that while US GDP per capita more than doubled, the ISEW per capita increased only 20%.108 In 2007, John Talberth and John Cobb showed that from 1950 to 2004, while the US GDP increased by nearly US$25,000 per person, the GPI increased by less than US$7,000 during that time.109 Since then, alternatives to the GDP that have been proposed, some of which include non-economic components: • Genuine Savings Indicator – developed by the World Bank and defined as “the true level of saving in a country after depreciation of produced capital; investments in human capital (as measured by education expenditures); depletion of minerals, energy, and forests; and damages from local and global air pollutants are taken into account”110
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• Green GDP – numerous attempts have been made to create Green GDPs that factor in estimates for environmental degradation and depletion of natural resources although no countries are currently reporting on this. • Ecological Footprint – a measure of the yearly biocapacity of the planet compared to humanity’s yearly use of natural capital and ecosystem services.111 • The Happy Planet Index – a project of the UK New Economics Foundation, which measures individual wellbeing, life expectancy, inequality of outcomes, and ecological footprints (average impact that each resident places on the environment).112 • Gross National Happiness Index – tracked by Bhutan since the 1970s, it uses 33 indicators of wellbeing.113 • The Human Development Index (HDI) – used by the UN Development Programme (UNDP) focuses on longevity, knowledge, and decent living standards.114 None of these alternative measures have gained sufficient traction to replace the GDP from its inappropriate role as a measure of progress.
Sustainable Economic Models Steady-State Economy In response to the contradiction between an exponentially growing economy and a finite planet, beginning in the 1970s ecological economist Herman E. Daly explored the concept of aiming for a “steady-state economy” (SSE): “The closer the economy approaches the scale of the whole Earth the more it will have to conform to the physical behavior mode of the Earth. That behavior mode is a steady state – a system that permits qualitative development but not aggregate quantitative growth... “We might define [a steady state economy as one] with constant population and constant stock of capital, maintained by a low rate of throughput that is within the regenerative and assimilative capacities of the ecosystem. This means low birth equal to low death rates, and low production equal to low depreciation rates. Low throughput means high life expectancy for people and high durability of goods.”115 However, governments and sustainability advocates have not actively embraced policies that would implement the concept to date, in part because it requires a non-growing population and restrictions on free trade.
Circular Economy “The Circular Economy involves a fundamental rethinking of products, materials and systems of commerce. It is not simply next-gen recycling.”116 — Joel Makower, State of Green Business 2016 The concept of a circular economy, and its cradle to cradle thinking, embraces changes to economic systems (e.g. infrastructure, incentives, and designs for materials reuse) that maximize materials reuse, with accompanying energy and water savings throughout the lifecycle of the
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products. Examples of circular economy elements include eco-industrial parks that co-locate enterprises that can use each other’s wastes. In a nutshell, sustainability progress requires minimizing the energy and materials used to satisfy human needs. Sustainability experts have created roadmaps for reducing energy and materials throughputs by factors of 4-10 with little, if any, diminishment of quality of life (a factor 5 reduction, for example, means an 80% improvement in resource productivity to one-fifth of what was previously required).117 Dramatic improvements in resource productivity result from energy and water efficiency and reuse of materials. A carpet tile, for example, when designed for recycling and made from recycled materials, can reduce the throughput of energy and materials to provide an area of nicely carpeted floor by 97% (partly by not requiring the entire floor’s carpeting to be replaced when some areas are worn). Similarly, an aluminum beverage can made from recycled aluminum is estimated to require about 5% of the energy to produce a can from virgin aluminum. Pioneers of designs for a circular economy include Walter Stahel’s Product-Life Institute118, and McDonough Braungart Design Chemistry, founded and managed by the authors of Cradle to Cradle, William McDonough and Michael Braungart.119 The non-profit Ellen MacArthur Foundation, a leading proponent of the concept, defines Circular Economy as: “One that is restorative and regenerative by design and aims to keep products, components and materials at their highest utility and value at all times, distinguishing between technical and biological cycles.”120 The Foundation estimates that global circular economy opportunities could reach $700 billion per year in materials savings. Circular economy development was cited as one of the top ten sustainable business trends for 2015 by GreenBiz.com.121
Sustainable Markets Sustainable Consumption “In most countries, household consumption, over the life cycle of the products and services, account for more than 60% of all impacts of consumption.” — United Nations Environment Programme (UNEP, 2010)122 Sustainability progress would be negligible without individual consumers choosing more sustainable products, services, and investment opportunities. Sustainable consumption and production systems were defined by the UN in 1994 as: “the use of services and related products, which respond to basic needs and bring a better quality of life while minimizing the use of natural resources and toxic materials as well as the emissions of waste and pollutants over the life cycle of the service or product so as not to jeopardize the needs of future generations.”123 The World Business Council for Sustainable Development (WBCSD) views progress on sustainable consumption and production as a systemic challenge requiring actions from businesses, governments, civil society, and consumers, which: “all have the power to affect change, sometimes in ways that are not traditionally per-
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ceived to be their role. Consumers may feel a moral responsibility to live sustainably, however they cannot do so without effective support from governments, NGOs and the businesses with which they interact.”124 Typical consumer choices with the largest impacts on sustainability performance involve: • Energy- and water-efficient purchases and minimized use • Nontoxic products • “Organic” (or equivalent) agricultural products • Recycled content products • Easily recyclable/reusable products • Local or sustainably-certified products According to United Nations Environment Programme (UNEP), the specific categories of consumer activities with the biggest impacts are: • Processes involving fossil fuel combustion. • Agricultural and biomass using activities. • Purchases from fisheries • Processes and purchases including metals (iron, steel and aluminum)125 Data show that consumers are attempting to make more sustainable choices – both in what they choose to purchase as well as the brands they seek. For example, the 2015 Nielsen Global Corporate Sustainability Report found through its surveys that: “Sixty-six percent of global consumers say they are willing to pay more for sustainable brands – up 55% from 2014. Seventy-three percent of global Millennials are willing to pay extra for sustainable offerings – up from 50% in 2014.”126
Lifestyles of Health and Sustainability (LOHAS) LOHAS (an acronym for Lifestyles Of Health And Sustainability) is a term frequently used to describe this ever growing market segment of sustainability minded consumers. LOHAS consumers emphasize “health and fitness, the environment, personal development, sustainable living, and social justice” when making purchasing decisions. According to Mobium Group, an Australian LOHAS market research group, these consumers fall into the following market segments: • Leaders – Strong concerns about personal, community and planetary health and sustainability issues which shape their values, worldviews and decision making. Highly committed, knowledgeable and have high levels of current participation in multiple LOHAS market categories • Leaning – Moderate to strong concerns regarding personal, community and planetary health and sustainability issues. They currently participate in selected LOHAS market categories, however they are not completely engaged and often make trade-offs in their consumption choices. Many feel highly conflicted by their desire to live a more sustainable lifestyle and maintain their current levels of material consumption.
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• Learners – Have more recent awareness of health and sustainability issues. They have poorer levels of knowledge and their interest at a community and planetary level is lower—they are more interested in personal aspects. They fundamentally want to do the right thing but are unsure where to start. At present they are not participating at any deep level in the LOHAS market categories. • Laggards – Have low levels of interest in the overall theme of health and sustainability in their lifestyles. Their future intention to participate in the LOHAS market categories is at very low levels.127 A BSR/Futerra survey of businesses revealed an expectation of dramatic growth in sustainable lifestyle interest in coming years – from 2% who are “very interested” and 88% “slightly interested” today to 98% being “very interested” in five years. As a result, “The number of companies working on inspiring, enabling and persuading consumers into sustainable behaviors will double by 2018. More than 50 large companies believe the riskbased business case for sustainable behavior change will be replaced by innovation and market share drivers within five years.”128 The reductions required to achieve sustainable lifestyles by 2050 is dramatic. According to the EU funded project SPREAD Sustainable Lifestyles 2050, the average European has an annual material footprint of 27,000 to 40,000 kilograms–well above the sustainable level of 8,000 kilos of natural resource consumption.129 Sustainable lifestyles growth reflects a decoupling of quality of life from income levels: “Growing desires for sufficiency or focus on quality of life and healthy living support the theory that the subjective well-being of people is linked to increasing income only up to a certain point. Once that point is reached, well-being and income decouple as increasing levels of income provide diminishing returns in terms of well-being and happiness.”130 However, as noted by the WBCSD based on stakeholder insights: “Consumer groups say that business has a key role to play in providing the most sustainable products and editing out ‘unsustainable’ ones. Studies over time have shown that there is a limit to how much we can expect from consumer choice alone. Consumers are not willing to pay significantly more for “green” products … and currently lack useful guidance on which products and services are more sustainable.”131 As part of their capacity building efforts, businesses are also getting on board. In the BSR/Futerra survey, 40% of respondents currently try to encourage more sustainable lifestyles, which is expected to double in three to five years.132 The forward looking employers understand that a workforce that observes a sustainable lifestyle at home, is better prepared to implement the organization’s sustainability strategy.
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ADDITIONAL RESOURCES • “UN, Sustainable Development: From Brundtland to Rio 2012.” http://www.un.org/wcm/ webdav/site/climatechange/shared/gsp/docs/GSP1-6_Background%20on%20Sustainable%20Devt.pdf • Herman Daly, “Sustainable Development: Definitions, Principles, Policies,” April 30, 2002: http://www.earthrights.net/docs/daly.html • General definitions: Enviropedia (http://www.sustainable-environment.org.uk) provides information on a range of environmental issues with links to pages with greater detail. • Adam Werbach on the death of environmentalism and the “Birth of Blue”: ¤ Grist, “The Birth of Blue: Adam Werbach calls for a new movement of a billion consumers,” Grist, Apr 13, 2008: http://grist.org/article/the-birth-of-blue/ ¤ Adam Werbach, “Where the environmental movement can and should go from here,” Grist, Jan 13, 2005. http://grist.org/article/werbach-reprint/ • Gretchen Daily, et. al., “Ecosystem Services: Benefits Supplied to Human Societies by Natural Ecosystems,” Issues in Ecology, Spring 1997: http://www.esa.org/esa/wp-content/ uploads/2013/03/issue2.pdf • Mark Mykleby, Patrick Doherty, and Joel Makower, The New Grand Strategy: Restoring America’s Prosperity, Security and Sustainability in the 21st Century, Macmillan, 2016. See: https://thenewgrandstrategy.com/ • Henry Fountain, “Ozone Hole Shows Signs of Shrinking, Scientists Say,” The New York Times, 30 June, 2016: http://www.nytimes.com/2016/07/01/science/ozone-hole-shrinking-montreal-protocol.html?rref=collection%2Fsectioncollection%2Fscience&action=click&contentCollection=science®ion=rank&module=package&version=highlights&contentPlacement=1&pgtype=sectionfront • Rachel Carson, Silent Spring, 1962 : http://www.rachelcarson.org/SilentSpring.aspx • UNEP, “Global Chemical Outlook”: http://www.unep.org/chemicalsandwaste/UNEPsWork/ Mainstreaming/GlobalChemicalsOutlook/tabid/56356/Default.aspx
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Chapter One Endnotes 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28.
Brundtland Commission, a.k.a. World Commission on Environment and Development (WCED), “Our Common Future, From One Earth to One World,” 1987: http://www.un-documents.net/our-common-future.pdf Alan AtKisson, The Sustainability Transformation: How to Accelerate Positive Change in Challenging Times, Earthscan, 2011 Herman E. Daly, “Toward some operational principles of sustainable development,” Ecological Economics, 1990 Op. cit. WCED, 1987 Op. cit. WCED, 1987 Paul Hawken, Amory B. Lovins and L. Hunter Lovins, Natural Capitalism – Creating the Next Industrial Revolution, Little, Brown, 1999, available at www.natcap.org Op. cit. Paul Hawken, et. al., 1999 Op. cit. Paul Hawken, et. al., 1999 Jérôme Pelenc, Jérôme Ballet, and Tom Dedeurwaerdere, “Brief for GSDR 2015: Weak Sustainability versus Strong Sustainability”: https://sustainabledevelopment.un.org/content/documents/6569122-Pelenc-Weak%20Sustainability%20versus%20Strong%20Sustainability.pdf E.F. Schumacher, Small is Beautiful – Economics as if People Mattered, Harper & Row, 1973. Gretchen Daily, et. al., “Ecosystem Services: Benefits Supplied to Human Societies by Natural Ecosystems,” Issues in Ecology, Spring 1997: http://www.esa.org/esa/wp-content/uploads/2013/03/issue2.pdf Robert Costanza, et. al., “The value of the world’s ecosystem services and natural capital,” Nature, Vol 387, 15 May 1997: http://www.esd.ornl.gov/benefits_conference/nature_paper.pdf Robert Costanza, et. al., “Changes in the Global Value of Ecosystem Services,” Global Environmental Change, Volume 26, 2014: http://www.sciencedirect.com/science/article/pii/S0959378014000685 The Economics of Ecosystems & Biodiversity: http://www.teebweb.org/about/the-initiative Al Bartlett, “English transcript of Arithmetic, Population and Energy - a talk by Al Bartlett”: http://www. albartlett.org/presentations/arithmetic_population_energy_transcript_english.html Donella H. Meadows, Dennis L. Meadows, Jorgen Randers and William W. Behrens III, “Limits to Growth: A Report for The Club of Rome’s Project on the Predicament of Mankind,” Universe Books, 1972: http:// www.donellameadows.org/wp-content/userfiles/Limits-to-Growth-digital-scan-version.pdf Ibid, Foreword. Paul R. Ehrlich and Anne H. Ehrlich, “Too Many People, Too Much Consumption,” Environment 360, 2008: http://e360.yale.edu/content/feature.msp?id=2041 Garrett Hardin, “The Tragedy of The Commons,”2001: http://www.garretthardinsociety.org/articles_pdf/ tragedy_of_the_commons.pdf UNEP Ozone Secretariat, “The Montreal Protocol on Substances that Deplete the Ozone Layer”: http:// unep.ch/ozone/pdf/Montreal-Protocol2000.pdf UN IPCC, “Sixth Assessment Report”: www.ipcc.ch UN’s Division for Ocean Affairs and The Law of the Sea: http://www.un.org/depts/los/ Biodiversity Indicators Partnership, “2016 Biodiversity Barometer,” 2016: www.bipindicators.net John Drexhage and Deborah Murphy, “Sustainable Development: From Brundtland to Rio 2012,” 2010: https://www.scribd.com/document/149351285/Sustainable-Development-From-Brundtland-to-Rio-2012 BBC, “In full: Mandela’s poverty speech,” February 3, 2005: http://news.bbc.co.uk/2/hi/uk_news/politics/4232603.stm Karl-Henrik Robèrt, et. al., Strategic Leadership Towards Sustainability, Blekinge Institute of Technology, 2007, page 148. Darcy Hitchcock and Marsha Willard, The Step-by-Step Guide to Sustainability Planning – How to Create and Implement Sustainability Plans in any Business or Organization, Earthscan, 2008, 173 pages, p. 41. A.H. Maslow, “A Theory of Human Motivation,” Psychological Review, 1943, http://psychclassics.yorku.ca/ Maslow/motivation.htm
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29. UN Department of Economic and Social Affairs, Sustainable Development Knowledge Platform “Poverty eradication”: https://sustainabledevelopment.un.org/topics/povertyeradication 30. Norway Ministry of Finance, “Indicators for Policies to Enhance Sustainable Development,” 2005, https:// www.regjeringen.no/globalassets/upload/kilde/fin/bro/2005/0001/ddd/pdfv/246109-indicators.pdf 31. John Cassidy, “Why the Remain Campaign Lost the Brexit Vote,” New Yorker, June 24, 2016: http://www. newyorker.com/news/john-cassidy/why-the-remain-campaign-lost-the-brexit-vote 32. R. Paul Herman, “Quantifying well-being and impact can drive investors to build a better world,” 2013: http://hipinvestor.com/wp-content/uploads/HIP-25-Page-Summary.pdf 33. United Nations, “UN Guiding Principles Reporting Framework,” 2015: http://www.ungpreporting.org/ wp-content/uploads/2015/02/UNGuidingPrinciplesReportingFramework_withimplementationguidance_ Feb2015.pdf 34. Ibid. 35. Glen Carey, “Saudi Building Bust Traps Thousands in Desert Nightmare Stuck in the desert’s searing summer sun with no work, no pay, and no way out,” Bloomberg, 8 August 2016: https://www.bloomberg.com/ news/articles/2016-08-08/stranded-in-desert-foreign-labor-is-casualty-of-saudi-slowdown 36. ILO, “21 million people are now victims of forced labour, ILO says,” 2012: http://www.ilo.org/global/aboutthe-ilo/newsroom/news/WCMS_181961/lang--it/index.htm 37. FIAN International, “Indigenous Peoples”: http://www.fian.org/what-we-do/issues/indigenous-peoples/ 38. Center for Economic and Social Justice, “Defining Economic Justice and Social Justice,” http://www.cesj. org/learn/definitions/defining-economic-justice-and-social-justice/ 39. US EPA, Environmental Justice, “Environmental Justice”: https://www.epa.gov/environmentaljustice. 40. European Commission, “The Aarhus Convention,” http://ec.europa.eu/environment/aarhus/ 41. UN High Level Task Force on Global Food Security, “Food and Nutrition Security: Comprehensive Framework for Action,” 2011: http://un-foodsecurity.org/sites/default/files/SUMMARY_UCFA_EN.pdf 42. UN Committee on World Food Security, “Principles For Responsible Investment In Agriculture And Food Systems,” 2014: http://www.fao.org/3/a-ml291e.pdf 43. Lucinda F. Brown, Small Steps, Big Strides: Building Sustainability Habits at Home, STET Sustainability Consulting, 2016. 44. IPCC, “IPCC Fourth Assessment Report: Climate Change 2007; Working Group I: The Physical Science Basis”: https://www.ipcc.ch/publications_and_data/ar4/wg1/en/spmsspm-human-and.html 45. T.J. Blasing, “Recent Greenhouse Gas Concentrations,” Carbon Dioxide Information Analysis Center (CDIAC): http://cdiac.ornl.gov/pns/current_ghg.html; “% Increase” column calculated by ISSP 46. C. Forbes Tomkins and Kelly Levin, World Resources Institute, “Climate Milestones of 2015: The Good, The Bad, and The Signs to Watch,” 30 Dec. 2015: http://www.wri.org/blog/2015/12/climate-milestones2015-good-bad-and-signs-watch 47. Greenhouse Gas Protocol, “Global Warming Potential Values”: http://www.ghgprotocol.org/calculation-tools/all-tools 48. IPCC, “Summary for Policymakers,” 2014: http://ipcc.ch/pdf/assessment-report/ar5/wg3/ipcc_wg3_ar5_summary-for-policymakers.pdf 49. IEA, “Decoupling of global emissions and economic growth confirmed,” 16 March 2016: https://www.iea. org/newsroom/news/2016/march/decoupling-of-global-emissions-and-economic-growth-confirmed.html 50. Op. cit. IPCC, 2014 51. Joe Romm, “More Bad News for Fracking: IPCC Warns Methane Traps Much More Heat Than We Thought,” Think Progress, 2 Oct. 2013: http://thinkprogress.org/climate/2013/10/02/2708911/fracking-ipcc-methane/ 52. Bill McKibben, “Global Warming’s Terrifying New Chemistry,” The Nation, 22 March 2016: http://www. thenation.com/article/global-warming-terrifying-new-chemistry/ 53. NASA Earth Observatory, “July 2016 Temperature Anomaly”: http://earthobservatory.nasa.gov/IOTD/view. php?id=88607 54. Op. cit. C. Forbes Tomkins and Kelly Levin, 2015
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55. Op. cit. NASA 56. NASA Goddard Institute for Space Studies, “GISS Surface Temperature Analysis (GISTEMP),” GISTEMP Team, 2016: http://data.giss.nasa.gov/gistemp (Table Data: Global and Hemispheric Monthly Means and Zonal Annual Means) 57. Op. cit. NASA 58. IPCC, “Climate change 2007: Synthesis Report”: https://www.ipcc.ch/publications_and_data/ar4/syr/en/ spms3.html 59. NOAA Pacific Marine Environmental Laboratory Carbon Program, “What is Ocean Acidification?”: http:// www.pmel.noaa.gov/co2/story/What+is+Ocean+Acidification%3F 60. Robert J. Nicolls, et. al., “Sea-level rise and its possible impacts given a ‘beyond 4°C world’ in the twenty-first century,” Royal Society Publishing, 29 November 2010: http://rsta.royalsocietypublishing.org/content/369/1934/161 61. Ibid. 62. Ibid. 63. IPCC, “Climate Change 2014: Synthesis Report Assessment Report: https://www.ipcc.ch/pdf/assessment-report/ar5/syr/SYR_AR5_FINAL_full.pdf 64. Robert J. Nicolls, et. al., “Sea-level rise and its possible impacts given a `beyond 4°C world’ in the twenty-first century,” Royal Society Publishing, 29 November 2010: http://rsta.royalsocietypublishing.org/content/369/1934/161 65. Climate Change News: http://www.climatechangenews.com/2014/01/17/fiji-village-relocated-under-climate-change-programme/ and http://www.climatechangenews.com/2014/08/15/solomon-islands-town-to-relocate-as-climate-pressures-mount/ 66. Florida Oceans And Coastal Council, “Climate Change And Sea-Level Rise In Florida: An Update Of The Effects Of Climate Change On Florida’s Ocean & Coastal Resources,” 2010: http://seagrant.noaa.gov/Portals/0/ Documents/what_we_do/climate/Florida%20Report%20on%20Climate%20Change%20and%20SLR.pdf 67. Millennium Ecosystem Assessment, “Current State and Trends Assessment,” 2005: http://www.millenniumassessment.org/en/Condition.html 68. Global Footprint Network, “Living Planet Report 2014 Facts,” and “Humanity’s Demand on Nature Climbs as Biodiversity Suffers Major Decline, Living Planet Report 2014 Finds”: www.footprintnetwork.org. 69. Op. cit. John Drexhage, et. al., 2010 70. WWF, “Living Planet Report 2016: Risk and resilience in a new era,” 2016: http://awsassets.panda.org/ downloads/lpr_living_planet_report_2016.pdf 71. State of California, “Understanding Toxic Substances: An Introduction to Chemical Hazards in the Workplace,” 2008: https://www.cdph.ca.gov/programs/hesis/Documents/introtoxsubstances.pdf 72. Stockholm Convention, “What are POPs?”: http://chm.pops.int/TheConvention/ThePOPs/tabid/673/Default.aspx 73. US Department of Labor, “Safety and Health Topics,” https://www.osha.gov/SLTC/metalsheavy/ 74. UNDP, “Chemicals and Waste Management for Sustainable Development,” May 2015: https://sustainabledevelopment.un.org/content/documents/1963Chemicals%20and%20Waste%20Management.pdf 75. Joel Makower, et. al., “State of Green Business 2014,” GreenBiz Media, p. 11 http://info.greenbiz.com/rs/ greenbizgroup/images/state-green-business-2014.pdf 76. UNEP, “Global Chemicals Outlook,” 2013: http://www.unep.org/chemicalsandwaste/UNEPsWork/Mainstreaming/GlobalChemicalsOutlook/tabid/56356/Default.aspx 77. Op. cit. UNEP, 2013 78. Op. cit. UNEP, 2013 79. Op. cit. UNDP, 2015 80. Op. cit. UNEP, 2013 81. Op. cit. UNEP, 2013 82. Bay Area Air Quality Management District, “Pollution Sources and Criteria Pollutants”: http://data. baaqmd.gov/cleanairprimer/IIIA3.html
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83. US NOAA, “Science: Ozone Basics”: http://www.ozonelayer.noaa.gov/science/basics.htm 84. US NOAA, “New global assessment examines air pollutants falling on the earth’s surface,” 15 April 2014: http://research.noaa.gov/News/NewsArchive/LatestNews/TabId/684/ArtMID/1768/ArticleID/10535/Newglobal-assessment-examines-air-pollutants-falling-on-the-Earth%E2%80%99s-surface.aspx 85. WHO, “Health and the environment: Draft roadmap for enhanced global response to the adverse health effects of air pollution,” 6 May 2016: http://apps.who.int/gb/ebwha/pdf_files/WHA69/A69_18-en.pdf 86. WHO, “Air pollution levels rising in many of the world’s poorest cities,” 16 May 2016: http://www.who.int/ mediacentre/news/releases/2016/air-pollution-rising/en/ 87. Ibid. 88. NASA, “NASA and NOAA Announce Ozone Hole is a Double Record Breaker,” 2006: http://www.nasa. gov/vision/earth/lookingatearth/ozone_record.html 89. Encyclopedia Britannica, “Freon”: https://www.britannica.com/science/Freon 90. Encyclopedia Britannica, “Photochemical Reaction”: https://www.britannica.com/science/photochemical-reaction 91. Australian Government, Department of the Environment and Energy, “Ozone depleting substances (ODS)”: https://www.environment.gov.au/protection/ozone/ozone-depleting-substances 92. Op. cit. NASA, 2006 93. US NOAA Earth System Research Laboratory, “Stratospheric Ozone Layer Depletion and Recovery”: http://www.esrl.noaa.gov/research/themes/o3/ 94. Kalpana Kochhar, et. al., “Is the Glass Half Empty or Half Full? Issues in Managing Water Challenges and Policy Instruments,” International Monetary Fund (IMF), 2015: http://www.imf.org/external/pubs/ft/sdn/2015/sdn1511.pdf 95. UN International Decade for Action ‘Water For Life’ 2005-2015, “Water Scarcity”: http://www.un.org/waterforlifedecade/scarcity.shtml 96. Sandra Postel, “Sustaining Freshwater and Its Dependents,” Worldwatch Institute, State of the World 2013, Chapter 5, 2013: http://library.uniteddiversity.coop/More_Books_and_Reports/State_of_the_World/State_ of_the_World_2013-Is_Sustainability_Still_Possible.pdf 97. Op. cit. Sandra Postel, 2013. 98. Op. cit. Sandra Postel, 2013. 99. Op. cit. Kalpana Kochhar, et. al., 2015 100. Lester Brown, “Getting the Market to Tell the Truth,” Treehugger webpage, 11 April 2012: http://www. treehugger.com/economics/getting-the-market-to-tell-the-truth.html 101. Quoted in Joel Bakan, The Corporation – The Pathological Pursuit of Profit and Power, Penguin Group, 2004. See also the documentary “The Corporation”. 102. Ibid. 103. Stephan Schmidheiny, Changing Course – A Global Perspective on Development and the Environment, MIT Press, 1992. 104. UNGC, “Act for the long-term in a short-term world. Short-Termism in Financial Markets”: https://www. unglobalcompact.org/take-action/action/long-term. 105. UNEP, “Financial Short-termism a Major Obstacle to Sustainable Change in Business: Expert Poll,” UNEP News Centre, 26 Jan. 2012: http://www.unep.org/NEWSCENTRE/default.aspx?DocumentId=2666&ArticleId=9011 106. OECD, “Is GDP a Satisfactory Measure of Growth?”, OECD Observer, Dec. 2004: http://www.oecdobserver. org/news/archivestory.php/aid/1518/Is_GDP_a_satisfactory_measure_of_growth_.html. 107. Robert Costanza, Maureen Hart, Stephen Posner, and John Talberth, “Beyond GDP: The Need for New Measures of Progress” Pardee Papers, No. 4, January 2009: http://www.bu.edu/pardee/files/documents/PP004-GDP.pdf?PDF=pardee-paper-004-beyond-gdp 108. Herman E. Daly and John B. Cobb Jr., For the Common Good – Redirecting the Economy Toward Community, the Environment, and a Sustainable Future, Beacon Press, 1989, Appendix. 109. Op. cit. Robert Costanza, et. al., 2009 110. Hamilton, K., G. Ruta, et. al., “Where Is the Wealth of Nations? Measuring Capital for the 21st Century,” The World Bank, 2006: http://siteresources.worldbank.org/INTEEI/214578-1110886258964/20748034/All.pdf
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111. Global Footprint Network: http://www.footprintnetwork.org/ 112. New Economics Foundation, “The Happy Planet Index 2016”: http://happyplanetindex.org/about 113. The Centre for Bhutan Studies & GNH Research, “Bhutan GNH Index”: http://www.grossnationalhappiness.com/articles/ 114. UNDP “Human Development Report: Overview,” 1990: http://hdr.undp.org/sites/default/files/reports/219/ hdr_1990_en_complete_nostats.pdf 115. Herman E. Daly, “A Steady-State Economy,” UK Sustainable Development Commission, 2008: http://www. sd-commission.org.uk/publications.php?id=775 116. Op. cit. GreenBiz Media, 2016 117. Ernst von Weizsacker, et. al., Factor Five – Transforming the Global Economy through 80% Improvements in Resource Productivity, The Natural Edge Project, Routledge, 2009: http://www.naturaledgeproject.net/factor5. aspx 118. Product-Life Institute, “Cradle to Cradle” http://www.product-life.org/en/cradle-to-cradle 119. MBDC: www.mbdc.com 120. Ellen MacArthur Foundation, “Towards A Circular Economy: Business Rationale For An Accelerated Transition”: https://www.ellenmacarthurfoundation.org/assets/downloads/publications/TCE_Ellen-MacArthur-Foundation_26-Nov-2015.pdf 121. Op. cit. GreenBiz Media, 2016 122. UNEP, “Assessing the Environmental Impacts of Consumption and Production – Priority Products and Materials,” 2010: http://www.unep.org/resourcepanel/Portals/24102/PDFs/PriorityProductsAndMaterials_Report.pdf 123. UN Dept. of Economic and Social Affairs, Sustainable Development Knowledge Platform, “Sustainable consumption and production”: https://sustainabledevelopment.un.org/topics/sustainableconsumptionandproduction 124. World Business Council for Sustainable Development (WBCSD), “Sustainable Consumption Facts and Trends – from a Business Perspective,” 2008: http://www.saiplatform.org/uploads/Modules/Library/WBCSD_ Sustainable_Consumption_web.pdf 125. Op. cit. UNEP, 2010 126. Nielsen, Press Room, “Consumer-Goods’ Brands That Demonstrate Commitment to Sustainability Outperform Those That Don’t,” 12 Oct. 2015: http://www.nielsen.com/us/en/press-room/2015/consumer-goods-brands-that-demonstrate-commitment-to-sustainability-outperform.html 127. Mobium Group, “Consumer Segments”: http://www.lohas.com.au/consumer-segments 128. BSR and Futerra Sustainability Communications, “Value Gap – The Business Value of Changing Consumer Behaviors,” 2013: https://www.bsr.org/files/work/Sustainable-Lifestyles-Frontier-Group-Value_Gap.pdf 129. European Commission, “Scenarios for Sustainable Lifestyles 2050: From Global Champions to Local Loops,” 2013: http://www.sustainable-lifestyles.eu/fileadmin/images/content/D4.1_FourFutureScenarios.pdf 130. Shane Fudge, et. al., editors, The Global Challenge of Encouraging Sustainable Living – Opportunities, Barriers, Policy and Practice, Edward Elgar Publishing Inc., 2013 131. Op. cit. WBCSD, 2008 132. Ibid.
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CHAPTER TWO Social Justice, Impact, and Responsibility Chapter Table of Contents Purpose. . ................................................................................................................................. 38 Overview................................................................................................................................ 38 Engaging Stakeholders.............................................................................................................. 38 Engaging Employees . . ................................................................................................................ 40 Child and Slave Labor.................................................................................................. 40 Workplace Health and Safety......................................................................................... 40 Livable Compensation.................................................................................................. 40 Employee Ownership.................................................................................................... 41 Employee Engagement and Work-Life Balance.................................................................. 42 Education and Training................................................................................................. 42 Engaging Customers and Constituents......................................................................................... 43 Customers and Constituents as Stakeholders.................................................................... 43 Inclusive Business........................................................................................................ 44 Engaging Suppliers................................................................................................................... 44 Ethical Sourcing / Fair Trade. . ........................................................................................ 44 Engaging Communities.. ............................................................................................................ 44 Community Contributions and Involvement.................................................................... 44 Environmental and Social Justice................................................................................... 45 Engaging Future Generations..................................................................................................... 45 Youth Stakeholders. . ..................................................................................................... 45 Intergenerational Responsibility..................................................................................... 46 Additional Resources................................................................................................................ 47 Chapter Two Endnotes......................................................................................................... 48
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PURPOSE While environmental impacts are often easier to see and measure, and frequently get the most attention from industry, social justice and social impacts are just as critical to the principles of sustainability. In parts of the world where social justice issues have been legislated (e.g. minimum wage laws, workers health and safety regulations, and whistleblower protection), organizations often fail to account for them properly in their operations and policies. Sustainability professionals should be sufficiently familiar with the key social sustainability trends, regulations, and best practices to help organizations and communities successfully address their most pressing issues.
OVERVIEW “Historically the term “sustainable” arose among those with environmental concerns, and most of the literature and assessment instruments reflect this emphasis. However, it is increasingly recognized that sustainability cannot be achieved without addressing social justice issues. There can be no sustainable communities and institutions without social justice.” — John B. Cobb Jr., 19981 At its simplest, social sustainability is related to the concepts of basic human needs, equity, and human rights, which were discussed in detail in Chapter 1. This chapter looks at how those three concepts apply to a variety of stakeholder groups. These issues can be seen as two overlapping, but distinct, areas of focus—the wellbeing of individuals, and the collective health of society. Both individual enterprises and communities collectively are working to address these issues and are using diverse social sustainability indicators to help build and implement successful sustainability strategies. Common social performance indicators for enterprises include such concerns as diversity, workplace health and injury rates, and the labor practices of suppliers. Common government indicators, on the other hand, include poverty rates, school enrollment rates, and access to healthcare.
ENGAGING STAKEHOLDERS “The business world has had to rethink what is means to be a ‘responsible’ company. It’s not just about ‘doing the right thing’ or ‘doing well by doing good.’ It’s about creating value – for shareholders, of course, but also employees, customers and communities.” — GreenBiz Media, 20142 Organizations seeking to address social sustainability issues need to understand the social issues discussed in Chapter 1. They also need to understand and engage the myriad stakeholders that are impacted by the organization’s activities. The idea that businesses have a greater responsibility than earning a profit is nothing new. As noted by the Center for Ethical Business Cultures: “Business giving and business involvement in community issues was familiar turf to many leading companies in the first half of the 20th century. Its roots reach back at least into the 19th century, and far earlier if one recognizes that the earliest ‘corporations’ were chartered with . . . public interest objectives as well as private economic objectives in mind.”3
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This is beginning to be addressed by companies in the mining industry. For example, the Australian Commonwealth Scientific and Industrial Research Organisation (CSIRO) works with mining companies to benchmark social performance and facilitate stakeholder engagement. The Company’s social license to operate is considered as essential as fulfillment of formal regulatory conditions.4 Today various forms of corporate social responsibility (CSR) – a.k.a. corporate responsibility (CR) – typically encompass environmental performance as well as a range of employee, supply chain, product safety, and community concerns.5 Surveys have shown the increasing importance of such activities among consumers. The 2015 Cone Communications Global CSR Study (conducted in nine countries) found: “CSR is now woven into the very fabric of how consumers lead their lives. Global consumers view CSR as a personal responsibility to be integrated and championed across the things they buy and the companies they work at and invite into their neighborhoods – and are willing to make sacrifices to address social and environmental issues. Ninety percent of the over 10,000 consumers surveyed said they would switch to brands that supported responsible causes.”6 Despite such popular desire for CSR initiatives, their adoption can face resistance. More than 40% of executives and investors in a 2004 survey by The Economist cited “cost implications and unproven benefits” as the biggest obstacles to implementation.7 Measuring the specific business value of such initiatives can be difficult, as noted by McKinsey & Co.: “The perceived importance of corporate environmental, social, and governance systems has soared in recent years as executives, investors, and regulators have grown increasingly aware that such programs can mitigate corporate crises and build reputations. But no consensus has emerged to define whether and how such programs create shareholder value, how to measure that value, or how to benchmark financial performance from company to company.”8 The HBS Social Enterprise Institute’s research had similar conclusions: “There is increasing pressure to dress up CSR as a business discipline and demand that every initiative deliver business results. That is asking too much of CSR and distracts from what must be its main goal: to align a company’s social and environmental activities with its business purpose and value.”9 A further challenge is that some companies, especially those primarily concerned with reputational benefits, may view corporate responsibility as an easier-to-achieve substitute for the rigors of implementing truly sustainable practices. This is because there is no specific definition for when an enterprise has attained “responsibility” to its stakeholders. In addition, the enterprise may not include future generations in its definition of stakeholders. In this case the organization may be guilty of greenwashing. Organizations have a responsibility to keep their stakeholders informed about the issues that impact them and the efforts to mitigate their cause. Providing a mechanism for these individuals and groups to offer feedback on those policies and practices that most affect them is central to successful stakeholder engagement. For example, the vision of AccountAbility, a UK non-profit established to assist implementation of corporate responsibility, is “a world where people have a say in the decisions that impact them, and where organizations act on and are transparent about the issues that matter.” It defines stakeholders as “groups who affect and/or could be affected by an organisation’s activities, products or services and associated performance.” Furthermore, it believes that quality engagement can lead to “more equitable and sustainable social development by giving those who have a right to be heard the opportunity to be considered in decision-making processes.”10
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Each stakeholder group has unique needs and the impacts they experience do not occur in isolation. In the following sections, we highlight some specific stakeholder issues that sustainability professionals should understand.
ENGAGING EMPLOYEES Child and Slave Labor Slavery is prohibited by the UDHR.11 In fact, UN Sustainable Development Goals (SDGs) for 2030 calls for measures to: “Eradicate forced labour, end modern slavery and human trafficking, and secure the prohibition and elimination of the worst forms of child labour, including recruitment and use of child soldiers, and by 2025 end child labour in all its forms.”12 According to the sustainability advocacy NGO Ceres, however, between 21 million and 27 million people worldwide are ensnared in forced labor and human trafficking, “The vast number of companies, suppliers, contractors, recruiters, and labor brokers involved in today’s global marketplace often obscures the conditions under which work is done and products made, making identification and eradication of forced labor and human trafficking challenging.”13 A Ceres and Sustainalytics 2014 survey of 613 large US publicly-traded companies found that only 31% have “formal policies or statements protecting the human rights of their direct employees”, and only 13% mention both forced and child labor explicitly in their human rights policy or statement.”14 Slave and child labor are of particular concern in a number of industries including garment manufacturing, cotton, cocoa, and seafood. In response to such practices, the state of California has legislation requiring that large retailers and manufacturers investigate and disclose the use of slavery in their products’ supply chains.
Workplace Health and Safety Public safety and health has been a foundation of environmental and occupational health protection regulations and enterprise sustainability management systems. For example, the US Clean Air Act, the EU’s REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) regulations, and Taiwan’s Occupational Safety and Health Act all provide for the establishment and enforcement of standards related to public health. Many enterprises manage human health and safety goals together with environmental sustainability efforts using environmental management systems (EMS). During such a system’s Plan-Do-Check-Act process, organizations set important health and safety goals. For example, goals to reach zero workplace injuries, limiting overtime, and increasing employee fitness program participation all improve the work environment.
Livable Compensation A “just” wage is a human right defined in the UDHR: “Article 23: 3. Everyone who works has the right to just and favorable remuneration ensuring for himself and his family an existence worthy of human dignity and supplemented, if necessary, by other means of social protection.”15
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Livable compensation is a comparison of the costs of living in a particular community/region with compensation levels. A typical US livable compensation measure is the wage rate per hour sufficient that one wage earner can afford a 2-bedroom apartment while paying no more than 30% of their gross income (before taxes) for total housing costs.16 Note that benefits packages can substantially alter total compensation but are not included in hourly living wage minimum estimates. However, workers throughout the supply chain can live in poverty, even when compensated at minimum levels required by law. According to a 2014 Oxfam report, three things explain this phenomenon: 1. unfair share of value in the chain 2. absence of collective bargaining 3. inadequate minimum wages17 Living wages can vary dramatically by region, country, and the number of adults and children/dependents in a household. Organisation for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises, adopted by 46 countries, call for the best possible wages that “are adequate to satisfy the basic needs of the workers and their families.”18 Fair Trade principles include “sustainable wages” as a component of “fair labor conditions.”19 The Future-Fit Business Benchmark includes the goal of paying employees a living wage at a minimum. According to Oxfam, “it has taken many years for companies to give serious consideration to payment of a living wage in their own operation and supply chains. While progress was made in health and safety, which is less challenging, and child labour, which carries reputational risks; it is only with the increasing momentum of living wage campaigns in recent years that practical steps are starting to be taken.”20
Employee Ownership Offering equity in an enterprise to rank-and-file employees can greatly enhance their ability to provide for themselves. Beyond providing livable compensation, employee ownership enhances worker loyalty and improves productivity. Because enterprises are often engaged in fierce global competition, they continually look to improve worker productivity, which can lead to layoffs if sales are not growing as rapidly as productivity gains. Employee ownership can soften the landing of people who are losing their employment – they can share in the increased profitability of the company that no longer needs them. In her landmark book The Divine Right of Capital, business ethics author Marjorie Kelly noted that corporations are too often managed solely for the interests of shareholders (owners) rather than stakeholders (such as employees) whose lives are much more impacted by corporate decisions, and who contribute much more to the organization’s success than a financial investor.21 The Mondragon Corporation of the Basque region of Spain, founded in 1956 with revenues now exceeding 15 billion euros, is considered a leading example of successful worker ownership. The flexibility that allows worker-owners to act together in reducing labor costs during recessions explains, in part, its endurance over time.22 Mondragon’s success demonstrates that employee ownership can provide sustainability benefits to both the corporation and its employees. Employee ownership attorney Deborah Groban Olson lists additional reasons why worker ownership promotes enterprise sustainability:
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• Economic – Local people are employed, typically at higher wages, and profit-retention benefits the local economy • Environmental – Local owners are more likely to protect the local environment, and more empowered employees help reduce waste (as they directly benefit from higher profitability)23 As summarized by the American Sustainable Business Council: “Worker-owned companies can take a variety of forms; all expand opportunity and smartly allocated the rewards of productivity to create broad-based, sustainable economic growth and prosperity. They can strengthen retirement savings and the finances of middle-class families. In addition, they enable workers to earn higher wages and continue to work during economic downturns.”24
Employee Engagement and Work-Life Balance Employees can be engaged both in and through sustainability efforts. An enterprise’s commitment to sustainability imbues every job with a greater sense of purpose. In addition, such initiatives as reducing business travel or encouraging telecommuting offer morale-boosting benefits while reducing environmental impact and increasing time on the job. Canadian sustainable business consultant and thought-leader Bob Willard observes: “Sustainability strategies and programs result in higher levels of employee engagement. Engaged employees are more productive. They want their company to succeed so that it can continue to add value to the community and ecosystems which the employees care about. Engaged employees are the secret sauce in the business case for sustainability.”25 Willard estimates that such efforts can boost productivity between 2% and 20%. On another level, achieving a “sustainable workforce” has prompted many employers to consider ways to foster a healthy work-life balance. These include flexible scheduling, career development programs, initiatives to maintain a motivated and engaged workforce, and inclusive leadership and strategic training programs. Employers with effective sustainable employment practices are using innovative solutions to help their employees adapt to social and economic change; they are embracing multiculturalism and globalization, and tying employee incentives to business sustainability goals. While there has been a great deal of focus on other sustainability issues, sustainability leaders are increasingly focusing more attention on work-life balance issues. Proactive strategies taken include offering child-care, family leave, and flexible work schedules.
Education and Training The field of sustainability involves different areas of study, such as systems thinking, life cycle analysis, social justice, and chronic health concerns facing humanity. While only a handful of individuals are likely to achieve deep expertise in such matters, implementing the practices required to create a sustainable planet depend on a general awareness of these topics among everyone. Commitment to recycling and paying or receiving a living wage are just two examples of sustainability related topics that can be addressed only through education of the entire population. It is critical, therefore, to incorporate elements of sustainability in school curricula from an early stage. A good example of this is the project “The Story of Stuff” by Annie Leonard, which highlighted some of the challenges that society faces from excess waste generation. The International Labour Organization (ILO) published guiding booklets in 1996 concerning educa-
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tion and training “to promote sustainable development.” It noted that all the stages of education – “basic education for all, vocational training, development of skills, trade union education and leadership training, and provision of information” – were required to support awareness of the “close links between human and work activities and the environment.”26 In 2007, the ILO identified greater investment in education and training as a “critical need … particularly in developing countries” that is a shared responsibility of governments, enterprises, social partners and individuals.27 “Training and education” is one of the eight aspects of sustainability reporting in the Global Reporting Initiative (GRI) Guidelines – specifically the “average hours of training per year per employee by gender and by employee category” and “programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.”28 The Future-Fit Business Benchmark lists the “Education Crisis” among the 16 key global challenges for sustainable businesses; worker training is assessed for B Corp certification; and “education and training” is listed among the “Building Blocks” for women’s empowerment by BSR.29
ENGAGING CUSTOMERS AND CONSTITUENTS Just as environmental responsibility requires enterprises to deliver Earth-friendly products and services, a commitment to sustainability leads businesses to respond to customer and constituent needs. As an ethical matter, organizations must deliver value and quality to these critical stakeholders, regardless of socioeconomic position.
Customers and Constituents as Stakeholders Whether it is a government serving its citizens, a school serving its students and their parents, an NGO serving its donors and clients, or a restaurant serving its diners, every organization has customers and constituents it must engage as stakeholders. In the marketplace, business models that embrace customers as important stakeholders have thrived. Cooperatives (co-ops) or public utilities/hospitals are often created by their own customers. Examples include agricultural cooperatives owned by the farmers they serve and organized to provide marketing services for agricultural products and/or supplies needed. Another concept of how businesses can more sustainably serve customers as stakeholders – and gain competitive advantage – is grounded in the product as service concept. For example, customers of a building’s services are not seeking to own light fixtures, they seek to receive the service of quality illumination which can be achieved through more effective daylighting. Similarly, the nascent autonomous vehicle industry is focusing on mobility as a service rather than on selling cars to people. Respecting customer stakeholders in sustainability efforts also means assisting and educating customers to live more sustainably.30 Additionally, GRI Reporting Guidelines require reporting on safety of customer use and sale of banned products.31
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Inclusive Business “Why is it that with all our technology, managerial know-how, and investment capacity, we are unable to make even a minor contribution to the problem of pervasive global poverty and disenfranchisement? Why can’t we create an inclusive capitalism?” — C.K. Prahalad, 200532 Business professors C.K. Prahalad and Stuart Hart began collaborating in 1997 on strategies for businesses to profitably serve “the bottom of the pyramid” – roughly defined (in 2005) as the one billion people living on less than $2 per day. Extending the benefits of global capitalism to them involved both products and services appropriate for their ability to pay, as well as engaging them as entrepreneurs. According to Prahalad: “The process must start with respect for Bottom of Pyramid consumers as individuals. The process of co-creation assumes that consumers are equally important joint problem-solvers. … New and creative approaches are needed to convert poverty into an opportunity for all concerned.”33 This work has received support from the WBCSD “Inclusive business” project, which has provided educational resources and events, and developed with The World Bank a database that “serves as a onestop source of data on household consumption patterns in developing countries.”34
ENGAGING SUPPLIERS Ethical Sourcing / Fair Trade Social and environmental impacts occur throughout the supply chain. At times, the organization has direct control over the actions that create those impacts, while at other times they do not. Supply chain management, therefore, has become an increasingly important concern as customers and NGOs have held manufacturers responsible for these impacts.35 The fundamental social justice mechanisms in supply chain management ensure that vendors comply with: • Fair Trade standards • Cruelty-free treatment of animals in product testing, manufacturing, or food production • International law concerning labor, accounting and the environment (e.g. avoiding conflict minerals, or paying a living wage) • Quality standards • Anti-corruption and bribery laws
ENGAGING COMMUNITIES Community Contributions and Involvement Charitable community contributions have long been a part of corporate responsibility. Direct contributions to community health, as well as those made through corporate foundations, are vital to local and
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global charities alike. Corporations have long seen charitable giving as acting in their enlightened self-interest—a cost-effective means of boosting reputation, strengthening stakeholder relationships, and supporting employee recruitment and retention. Studies show that charitable giving and CSR are particularly important in employee recruitment of Millennials, who have “increased desire to be part of greater social change.”36 In fact, employees are more inspired when they were able to help direct philanthropic contributions. At the leading edge of social responsibility practices are strategies that reduce environmental impacts while helping the poor. For example, US-based Grid Alternatives obtains corporate contributions and provided volunteers to install solar electricity on homes of low-income residents.37 Nestle (Switzerland) supports cocoa farmers by providing training in sustainable practices, access to healthcare, and educating their children.38 Companies seeking market leadership in corporate responsibility have incorporated charitable giving into their core business model.
Environmental and Social Justice The principle of “Common But Differentiated Responsibilities and Respective Capabilities” (CBDR) occurs both in the Rio Declaration and the UN Framework Convention on Climate Change. An environmental and economic justice consideration in climate change and other sustainability challenges, CBDR reflects two key foundations for determining allocations of resources in problem solving. First, every country has responsibilities, but, second, differing commitments will be expected based on differing circumstances, development needs, capacities, and historic contributions to CO2 emissions. Including this principle in Rio and the UNFCCC reduced the requirements for developing countries to take steps towards climate action. This placed more of the burden on wealthier nations with historically higher contributions. In recent years, however, wealthier nations have objected to CBDR as a legally binding principle.39 The responsibility for ensuring justice goes beyond the actions of nations. The phenomenon of “NIMBY” (not in my backyard) provides an example of how the strong voices of the wealthy often jeopardize the ability of others to meet their basic needs. E-waste disposal offers a prime example of this.40
ENGAGING FUTURE GENERATIONS Youth Stakeholders The UN’s “Major Group for Children and Youth” is the mechanism established for influence on sustainable development negotiations for people younger than 30 years of age. It is presently governed by organizations such as the European Youth Forum, Pacific Youth Council, Restless Development and Children and Youth International. It has a role in various processes regarding Sustainable Development such as the Open Working Group on Sustainable Development and Financing for Sustainable Development.41 Unsurprisingly, a 2012 survey of young people in 186 countries found that “the main challenges for youth were “limited opportunities for effective participation in decision-making processes” leading them to feel excluded and marginalized in their societies and communities. Greater capacity development,
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participatory structures and greater trust between youth and institutions was stressed. The UNDP: “…further recognizes that young people can engage in peacebuilding, leading non-violent revolutions, using new technologies to mobilize societies to bring about change. Young people have demonstrated the potential to build bridges across communities, working together – (they) are vital stakeholders in conflict and in peace-building.”42
Intergenerational Responsibility “Since the world has been given to us, we can no longer view reality in a purely utilitarian way, in which efficiency and productivity are entirely geared to our individual benefit. Intergenerational solidarity is not optional, but rather a basic question of justice, since the world we have received also belongs to those who will follow us.” — Pope Francis, 201543 The Industrial Revolution that began in the late 1700s gave humanity a problem that it didn’t previously have: toxic and hazardous effluents from manmade sources.44 The effects on our atmosphere from the greenhouse gases released by chemical systems and the use or the burning of carbon-based fuels will last more than a century.45 In addition, the waste generated by the extractive industries often remains untreated in many parts of the world. The lack of stringent laws and a failure of society to understand the long term risks associated with such hazards, have contributed to this state of affairs. According to the UK’s Institute of Development Studies (IDS):46 “The principle of intergenerational justice argues that there should be distributive justice between generations, and that the rights of generations should be considered equal over time. While political leaders often recognize the importance of intergenerational justice in speeches, it is not reflected in policies or proposals at the international, national or local level.” The IDS notes that intergenerational ecosystem damage from, for example, climate change, seriously impacts child rights articulated in the UN Convention on the Rights of the Child. Some of the rights granted to children under this convention, include: • the right of a child to have his or her best interests be a primary consideration in all actions concerning him or her (Article 3) • the right to of children to survive and develop healthily (Article 6) • the right to the enjoyment of the highest attainable standard of health (Article 24) • the right to education (Article 27)47 Intergenerational responsibility is usually considered a moral question—one which people elect to address—but two recent legal cases may change this perspective and enshrines intergenerational equity as a responsibility.48 Regardless, consideration of the needs of future generations should always permeate sustainability practices.
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ADDITIONAL RESOURCES • The Environmental Justice Atlas (https://ejatlas.org) website tracks nearly 2,000 environmental security threats worldwide. • The US Centers for Disease Control and Prevention’s, “A Sustainability Planning Guide for Healthy Communities” is aimed at coalitions of community organizations that need to “develop a hopeful, yet realistic, vision of a healthier community.”https://www.cdc.gov/nccdphp/dch/programs/healthycommunitiesprogram/pdf/sustainability_guide.pdf. • Corporate Citizenship, “Creating Resilient Strategies – Insights on how companies are responding to societal challenges,” 2014: http://corporate-citizenship.com/wp-content/uploads/Europe-Creating-Resilient-Strategies.pdf • UN Sustainable Development Knowledge Platform, “Children and Youth” https://sustainabledevelopment.un.org/majorgroups/childrenandyouth • Kamala D. Harris, California Attorney General, “The California Transparency in Supply Chains Act – A Resource Guide,” 2015: https://oag.ca.gov/sites/all/files/agweb/pdfs/sb657/ resource-guide.pdf. • C.K. Prahalad and Stuart L. Hart, “The Fortune at the Bottom of the Pyramid,” Strategy + Business, 2002: http://www.strategy-business.com/article/11518?gko=9a4ba • Canadian Business for Social Responsibility, “Is Your Company Transformational?,” 2015: http://cbsr.ca/transformationalcompany/wp-content/uploads/2015/07/tcq-glance-en.pdf • Transparency International website https://www.transparency.org/whatwedo/tools/ • Brandon Vaidyanathan, “Science of Generosity – Corporate Giving: A Literature Review,” University of Notre Dame Center for the Study of Religion and Society, 2008: https://generosityresearch.nd.edu/assets/17636/corporate_giving_final.pdf
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Chapter Two Endnotes 1. 2. 3. 4. 5.
6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24.
Cobb is quoted from a presentation to the 1998 “Sustainability and the Liberal Arts” conference in “Definitions of Sustainability”: https://www.uwosh.edu/facstaff/barnhill/490-docs/readings/definitions.pdf. Joel Makower and the editors of GreenBiz.com, “State of Green Business 2014,” GreenBiz Media, p. 20, at http://info.greenbiz.com/rs/greenbizgroup/images/state-green-business-2014.pdf Kenneth Goodpaster et. al., “Corporate Social Responsibility – The Shape of a History, 1945-2004,” Center for Ethical Business Cultures, 2005, at: http://www.cebcglobal.org/wp-content/uploads/2015/02/CSR-The_ Shape_of_a_History.pdf Australian Commonwealth Scientific and Industrial Research Organisation (CSIRO), “Social Licences to Operate” : http://www.csiro.au/en/Research/MRF/Areas/Community-and-environment/Social-licence-to-operate. Numerous resources are available to provide details on CSR activities. See also the lists of CSR activities, for example: https://www.smartrecruiters.com/blog/top-10-corporate-social-responsibility-initiatives/; http:// www.businessnewsdaily.com/5499-examples-socially-responsible-businesses.html; http://www.csrworld.net/ corporate-initiatives.asp CyberGrants, “6 Key Findings on the Rising Role of Corporate Social Responsibility (CSR),” 11 June 2015, at: http://www.cybergrants.com/blog/corporate-social-responsibility-csr-201506.html The Economist Intelligence Unit, “The Importance of Corporate Responsibility,” 2005, based on a survey of ~200 executives and investors, at: http://graphics.eiu.com/files/ad_pdfs/eiuoracle_corporateresponsibility_wp.pdf McKinsey & Co., “Valuing corporate social responsibility: McKinsey Global Survey Results,” 2009, at: http://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/valuing-corporate-social-responsibility-mckinseyglobal-survey-results V. Kasturi Rangan et al., “The Truth About CSR,” Harvard Business Review, Jan-Feb 2015, at: https://hbr. org/2015/01/the-truth-about-csr AccountAbility, “AA1000 Stakeholder Engagement Standard 2015,” http://www.mas-business.com/docs/ AA1000SES%202015.pdf UN, “Universal Declaration of Human Rights,” 1948: http://www.ohchr.org/EN/UDHR/Documents/ UDHR_Translations/eng.pdf UN Sustainable Development Knowledge Platform, “Goal 8,” https://sustainabledevelopment.un.org/sdg8 Ceres, “Hidden in Plain Sight,” http://www.ceres.org/roadmap-assessment/roadmap-in-action/explore-by-topic/performance-supply-chain/hidden-in-plain-sight Ceres, “Gaining Ground: Corporate Progress on the Ceres Roadmap for Sustainability,” 2014: http://www. ceres.org/roadmap-assessment/progress-report/progress-report Op. cit. UN, 1948 National Low Income Housing Coalition, “Housing Wage Calculator”: http://nlihc.org/library/wagecalc Oxfam Issue Briefing, “Steps Toward a Living Wage in Global Supply Chains,” 2014: https://www.oxfam.org/ sites/www.oxfam.org/files/file_attachments/ib-steps-towards-living-wage-global-supply-chains-101214-en.pdf Roel Niewwenkamp and Marjoleine Hennis, “Scaling Up Living Wages in Global Supply Chains,” OECD, 2016: http://oecdinsights.org/2016/04/28/scaling-up-living-wages-in-global-supply-chains/ Fair Trade USA, “What is Fair Trade?,” http://fairtradeusa.org/what-is-fair-trade Op. cit. Oxfam, 2014. Marjorie Kelly, The Divine Right of Capital – Dethroning the Corporate Aristocracy, Berrett-Koehler, 2001. Introduction available at: http://corporation2020.com/corporation2020/documents/Resources/Kelly.pdf Giles Tremlett, “Mondragon: Spain’s giant co-operative where times are hard but few go bust,” The Guardian, 7 March 2013: https://www.theguardian.com/world/2013/mar/07/mondragon-spains-giant-cooperative Deborah Groban Olson website, “Sustainable Businesses, Employee Ownership & Cooperatives,” http:// www.esoplaw.com/practice-areas/sustainable-businesses-employee-ownership-cooperatives/ American Sustainable Business Council website, “Worker Ownership,” http://asbcouncil.org/issues/worker-ownership#.V6wEQrW89Eo
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25. Bob Willard, “5 Reasons I low-ball Employee Productivity in the Business Case for Sustainability,” Sustainability Advantage, 2013: http://sustainabilityadvantage.com/2013/02/05/5-reasons-i-low-ball-employee-productivity-in-the-business-case-for-sustainability/ 26. ILO, “Using ILO Standards to Promote Environmentally Sustainable Development – Education and Training,” 1996: http://www.ilo.org/wcmsp5/groups/public/---ed_dialogue/---actrav/documents/publication/ wcms_122114.pdf 27. International Labour Conference 96th Session, “Report VI – The Promotion of Sustainable Enterprises,” 2007: http://www.ilo.org/wcmsp5/groups/public/---ed_emp/---emp_ent/documents/publication/wcms_093969. pdf 28. Global Reporting Initiative, “G4 Sustainability Reporting Guidelines,” 2015: https://www.globalreporting. org/resourcelibrary/GRIG4-Part1-Reporting-Principles-and-Standard-Disclosures.pdf 29. Business for Social Responsibility and International Center for Research on Women, “Building Effective Women’s Economic Empowerment Strategies,” Jan. 2016: http://www.bsr.org/reports/BSR_ICRW_Building_Effective_Womens_Economic_Empowerment_Strategies.pdf 30. WBCSD website, “Sustainable Lifestyles,” http://www.wbcsd.org/Clusters/Sustainable-Lifestyles 31. Global Reporting Initiative, “G4 Implementation Manual,” 2015: https://www.globalreporting.org/resourcelibrary/GRIG4-Part2-Implementation-Manual.pdf 32. C.K. Prahalad, The Fortune at the Bottom of the Pyramid, Wharton School Publishing, 2005, Preface. 33. Ibid. Preface and P.3. 34. World Bank, “Global Consumption Database,” http://datatopics.worldbank.org/consumption/ 35. Marc Gunther, “Under pressure: the campaigns that persuaded companies to change the world,” The Guardian, 9 Feb. 2015: https://www.theguardian.com/sustainable-business/2015/feb/09/corporate-ngo-campaign-environment-climate-change 36. Michelle Bittner, “Study: Corporate Giving Improves Employee Performance,” NonProfit Quarterly, 9 Jan. 2015: https://nonprofitquarterly.org/2015/01/09/study-corporate-giving-connected-to-employee-performance/ 37. Grid Alternatives: www.gridalternatives.org 38. McKinsey & Co., “The business of sustainability: McKinsey Global Survey results,” 2011: http://www.mckinsey.com/business-functions/sustainability-and-resource-productivity/our-insights/the-business-of-sustainability-mckinseyglobal-survey-results. 39. Pieter Pauw et al., “Different Perspectives on Differentiated Responsibilities,” German Development Institute, 2014: https://www.die-gdi.de/uploads/media/DP_6.2014..pdf 40. UN Step Initiative, “What is e-waste?”:http://www.step-initiative.org/what-is-ewaste.html 41. UN Sustainable Development Knowledge Platform, “Children and Youth,” https://sustainabledevelopment. un.org/majorgroups/childrenandyouth 42. UNDP and UN Focal Point on Youth of UN-DESA, “Youth, Political Participation and Decision-making,” 2012: http://www.un.org/esa/socdev/documents/youth/fact-sheets/youth-political-participation.pdf 43. Pope Francis, “Encyclical Letter Laudato Si’ of the Holy Father Francis on Care for our Common Home,” 2015: http://w2.vatican.va/content/francesco/en/encyclicals/documents/papa-francesco_20150524_enciclica-laudato-si.html 44. David Biello, “Spent Nuclear Fuel: A Trash Heap Deadly for 250,000 Years or a Renewable Energy Source,” Scientific American, 28 Jan. 2009:http://www.scientificamerican.com/article/nuclear-waste-lethal-trash-or-renewable-energy-source/ 45. IPCC, “Climate Change 2007: Working Group I: The Physical Science Basis, TS.2.1 Greenhouse Gases,” 2007: https://www.ipcc.ch/publications_and_data/ar4/wg1/en/tssts-2-1.html 46. Institute of Development Studies, “Climate Change, Child Rights and Intergenerational Justice,” 2009: https://www.ids.ac.uk/files/dmfile/IF13.2.pdf 47. Op. cit. Institute of Development Studies, 2009 48. Op. cit. Institute of Development Studies, 2009 and Our Children’s Trust, “Landmark US Federal Climate Lawsuit”
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CHAPTER THREE Frameworks and Principles Chapter Table of Contents Purpose. . ................................................................................................................................. 51 Overview................................................................................................................................ 51 Sustainability Frameworks......................................................................................................... 51 The Natural Step (TNS)............................................................................................... 51 Triple Bottom Line (TBL)............................................................................................. 54 Community Capitals Framework..................................................................................... 55 Adapting and Using Frameworks.. ................................................................................... 55 Sustainability Principles. . .......................................................................................................... 56 Foundational Principles . . ............................................................................................... 56 Rio Declaration.................................................................................................... 56 Earth Charter....................................................................................................... 57 Precautionary Principle.......................................................................................... 58 Principles of Environmental Law............................................................................. 58 Principles of Natural Systems.................................................................................. 59 Principles for Organizations........................................................................................... 59 UN Global Compact.............................................................................................. 59 UN Guiding Principles on Business and Human Rights............................................... 60 Ceres Principles.................................................................................................... 60 Equator Principles................................................................................................. 61 Melbourne Principles for Sustainable Cities.............................................................. 61 Principles for Production............................................................................................... 61 Industrial Ecology................................................................................................. 61 Hannover Principles.............................................................................................. 62 Additional Resources................................................................................................................ 63 Chapter Three Endnotes...................................................................................................... 64
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PURPOSE Sustainability frameworks are mental models used to explain sustainability and how economic and social activity can fit within a sustainable global environmental system. Sustainability principles are sets of fundamental ground rules for achieving sustainability. There is no single “right” framework or set of principles—rather, frameworks and principles show how to apply sustainability thinking across a wide variety of situations and contexts. A sustainability professional needs to be conversant with commonly used sustainability frameworks and principles, and be able to apply and adapt appropriate frameworks and principles depending upon a particular situation and context.
OVERVIEW As noted in Chapter One, the UN’s Brundtland Commission Report (1987), “Our Common Future,” provides the most widely cited definition of sustainability: “providing for our current needs without compromising the ability of future generations to meet their own needs.”1 While it captures the primary intent behind sustainability, it does not offer sufficient direction for action. Over the years professionals have crafted more specific definitions, typically tailored to the unique situation they will be used in. However, the numerous definitions that have emerged have created some confusion within the field. Therefore, familiarity with the range of definitions allows sustainability professionals to clarify understanding in various contexts. Figure 5 illustrates a hierarchy demonstrating that sustainability tools, standards, and certifications are derived from sustainability principles, which are derived from sustainability frameworks derived from the laws of nature.2
Figure 6: Natural Laws, Frameworks, Principles, Tools (Courtesy of Darcy Hitchcock and Marsha Willard)
SUSTAINABILITY FRAMEWORKS Sustainability frameworks provide a model of what humans must do to live within the laws of nature. They help us understand our relationship with these laws, translate them into actions, and provide a shared language for communicating about these understandings and actions. Sustainability frameworks have application across industry sectors, geographies, and cultures. There are many different sustainability frameworks that are used either as originally drafted or by adapting them, sometimes by combining with other frameworks. While sustainability practitioners often mix and match frameworks based on the needs of the situation, in the following sections, you’ll find three broadly used examples.
The Natural Step (TNS) Developed in the 1990s, The Natural Step (TNS) follows a five-level framework developed by Dr. Karl-Henrik Robèrt, a former pediatric oncologist in Sweden. Motivated by his work on childhood cancers, Dr. Robèrt used the scientific method to identify the system conditions under which human
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activity on Earth could be considered sustainable. TNS has translated its societal system conditions into an implementation system for enterprises. Both the implementation system and the non-profit organization of the same name (TNS) that assists enterprises with its implementation were created by Dr. Robèrt.3
RELATED TOPICS • ABCD Planning Method
Robert’s hierarchical framework for planning in complex systems underpins TNS and consists of five levels:4 Level 1: System The planning process begins with a look at the principles governing the social and ecological constitution of the system under consideration. In the case of sustainability, that system comprises an economy that supports society operating within the environment. At this level, TNS acknowledges the universally accepted natural and scientific laws governing our planet. Namely that: • Nothing Disappears – All mass and energy in the universe is conserved. According to the First Law of Thermodynamics, energy may be converted into different forms, but the total amount of energy in an isolated system remains constant. • Everything Spreads – Energy and matter tend to spread spontaneously; everything has a tendency to disperse (the Second Law of Thermodynamics, or the Law of Entropy). • There is Value in Structure – What we consume are the qualities of matter and energy—the concentration, purity, and structure of matter—and the ability of energy to perform work. We never consume energy or matter because it is neither created nor destroyed. • Photosynthesis Pays the Bills – Net increases in material quality on Earth are generated almost entirely by the sun-driven process of photosynthesis. According to the Second Law of Thermodynamics, disorder increases in all isolated systems. The Earth is a closed system with respect to matter, but it is an open system with respect to energy because it receives light from the sun. It is this flow of sunlight that continues to create structure and order from the disorder. Yet, over time, society has overlooked these laws, resulting in four “system conditions”: • humans extract substances, such as water, from the Earth at a greater rate than nature can replenish them • humans create and emit substances, such as antibiotics and endocrine disruptors, at a faster rate than nature can absorb them • humans are physically degrading the quality of natural systems, such as over harvesting old growth forests and depleting of aquifers, at a faster rate than nature can repair them • human populations around the globe find it increasingly difficult to provide for themselves5 The shape of a funnel provides an apt metaphor to illustrate the constraints placed on our actions with continued status quo behavior.6 All the things we need to run our businesses and support the lives of citizens of the planet are in decline – potable water, arable top soil, forests, fisheries, fossil fuels, etc. The need of our growing population and its increasing appetite is outstripping the earth’s capacity to provide. In order to “even out” the walls of the funnel and increase the operating space for humans, we have to learn to operate within the laws of nature that govern this system.
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SUPPLY
Dec
Natural Resources Restorative Capacity Equality Purity Fairness
rea s
ing
Sustainable Society DEMAND
? tion tora Res
Through innovation, creativity, & the unlimited potential for change, we can reopen the walls of the funnel to a Third Industrial Revolution!!! Res tora tion ?
Consumption Emissions Population Competition Market Pressures
ing
eas Incr
Time
Figure 7: Funnel Metaphor Showing Systematic Decline in Options for Society (Illustration Courtesy of Lucinda Brown)
Level 2: Success After building an awareness of how the system functions, planners define the basic principles for achieving a favorable outcome of planning within that system. Based on the system conditions described above, TNS sets forth the following four “System conditions”, or “Sustainability Principles” (SPs) to guide decision-making as society attempts to mitigate the unsustainable system conditions.1 In a sustainable society, nature is not subject to systematically increasing … … concentrations of substances from the Earth’s crust, … concentrations of substances produces by society, … degradation by physical means, …and in that society … … there are no structural obstacles to people’s health, influence, competence, impartiality and meaning.7 To bring system conditions closer to the SPs, TNS provides two overarching approaches — dematerialization and substitution. Dematerialization includes improvements in human and resource productivity combined with waste reduction. Substitutions include the use of abundant, degradable, and renewable resources gained through fair practices in place of limited or rare resources. Level 3: Strategy With an understanding of how the ecosphere functions and what sustainability will look like, decision-makers can begin planning. At the strategy level, the four SPs form the basis for developing organizational sustainability principles to guide a successful process for achieving sustainability, based on their specific circumstances. Traditionally, organizations have built strategic plans based on forecasting from current circumstances. Yet, this approach can take them in the wrong direction entirely. Further, the more complex the scenar Note that in his Framework for Strategic Sustainable Development (FSSD), Robèrt calls these system conditions “basic principles for a sustainable society in the biosphere” or the “basic principles of sustainability”. [Source: Karl-Henrik Robèrt, Strategic Leadership Toward Sustainability, Blekinge Institute of Technology, 2004.] 1
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io, the more difficult planning becomes—one simply cannot plan for every eventuality. Robèrt, therefore, devised a process called “backcasting from basic principles” — a method for planning that begins with a vision of sustainability followed by a gap analysis of the circumstances that are described by the difference between the existing state and the vision state. This assessment leads to a set of actions that will close the gap overtime.8 Level 4: Actions With the strategic planning process complete, organizations begin to take concrete actions that fit strategic guidelines. Since the framework does not provide much guidance on how to implement the selected actions, decision-makers should turn to other frameworks for additional guidance. Level 5: Tools Regardless of the implementation approach the organization has chosen, the final level of TNS calls for the systematic measurement, monitoring and auditing of actions against both strategic goals and basic principles.
Triple Bottom Line (TBL) Perhaps the most widely used framework for understanding sustainability—the Triple Bottom Line (TBL)—focuses on three areas of concern: the environment, society, and the economy. Sometimes it is described as “economic prosperity, environmental quality, and social equity,” (i.e., “3Es”) or as “people, planet, profit” (i.e., “3Ps”).
RELATED TOPICS • B Corp • Circles of Sustainability • Future Fit Business Benchmark (F2B2)
Both TBL and 3Ps were developed by consultant and thought leader John Elkington of SustainAbility, in 1994-1995. The TBL came about, he said, because: “We had been looking for new language to express what we saw as an inevitable expansion of the environmental agenda … we felt that the social and economic dimensions would have to be addressed in a more integrated way if real environmental progress was to be made.”9 The traditional business model of strictly focusing on financial performance fails to capture the full range of costs and benefits associated with business activity. For example, financial statements don’t reflect workforce turnover resulting from ill health or disillusionment that has enormous, system-wide impact on performance. Likewise, expenditures on renewable energy might appear to lower profits—at least for short-term investors—but may reduce future regulatory costs and improve brand performance. The TBL has become associated with frameworks for sustainability reporting. According to the Global Reporting Initiative (GRI): “The concept of ‘triple bottom line’ reporting, such as offered by the GRI, is increasingly welcomed by financial analysts and investors because it helps them make better judgments about the true value and prospects of a company across a broader range of assets.”10 Elkington concluded in 2004 that: “...the TBL agenda focuses corporations not just on the economic value that they add, but also on the environmental and social value they add – or destroy. … The TBL agenda as most people would currently understand it is only the beginning. A much more comprehensive approach will be needed that involves a wide range of stakeholders and coordinates across many areas of government policy, including tax policy, technology policy,
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economic development policy, labour policy, security policy, corporate reporting policy and so on. Developing this comprehensive approach to sustainable development and environmental protection will be a central governance challenge.”11 By focusing on, and accounting for, their TBL impacts, organizations actually improve their financial performance and become more attractive investments for all stakeholders.
Community Capitals Framework The Community Capitals Framework (CCF) offers a systems perspective to economic development that supports the creation of healthy, resilient, and sustainable communities. The framework places emphasis on understanding community capital, the assets of a community, rather than simply focusing on deficiencies and needs.12
RELATED TOPICS • Natural Capitalism • LASER • Systems Thinking
Taking a systems perspective, planners identify the assets in each of seven capitals, the types of investments, and the interaction between these stocks and flows. The seven capitals include: 1. Natural capital – Those assets, found in the ecosystem, that provide the community with a broad range of goods and services. 2. Cultural capital – Reflects the way people “know the world,” the voices they hear, and how they act within it. 3. Human capital – The skills and abilities of people within the community. 4. Social capital – The connections among people and organizations that provide the social glue to make things happen. 5. Political capital – The access to power and the ability to influence standards, rules, regulations and their enforcement. 6. Financial capital – The tax base and other financial resources available to invest in community capacity building, business development, and civic and social entrepreneurship. 7. Built capital – The physical infrastructure and utilities that supports the community.
Adapting and Using Frameworks Sustainability frameworks provide a shared model for developing a strategic sustainability program. The sustainability frameworks above are the most broadly used, although most organizations combine and/or adapt these frameworks to fit their particular circumstances. Sustainability consultants, Darcy Hitchcock and Marsha Willard, offer enterprises a strategy for adapting and combining sustainability frameworks in a synergistic way – using each for what it is best at. They state that a framework should include: • A definition of sustainability and the basis for a vision of success • A common language for talking and teaching about sustainability • An organizing structure for sustainability efforts • Suggestions for metrics and report organization • Credibility for the program and assurance that no important element of sustainability has been left out
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Hitchcock and Willard observe that frameworks such as TBL lack a defined way to measure success at achieving their goals. On the other hand, The Natural Step framework provides guidance on goals but can be difficult for non-scientists to understand. Combining frameworks can draw on elements from one framework that compensate for such weaknesses while holding on to what is best from the other.13
SUSTAINABILITY PRINCIPLES Principles provide a set of rules that govern the decisions made and actions taken. Sustainability principles offer initial guidance, support good choices that take people in the right direction, and give parameters for mid-course corrections. The following adopted principles provide guidance for sustainability implementation, often targeted to specific types of organizations or situations.
Foundational Principles Foundational sustainability principles offer high-level guidance. As with the scientific principles underpinning TNS, these principles form the foundation upon which more specific principles and standards can be formed. Below, we provide five examples of such principles.
RELATED TOPICS • • • • • • • • • • •
Caux Round Table Principles for Business Caux Round Table Principles for Government Talloires Declaration Agenda 21 Sustainable Consumption Polluter Pays Principle Youth Stakeholders Persistent Organic Compounds Stockholm Convention on POPs LOHAS Social Justice
Rio Declaration A major outcome of the 1992 Earth Summit in Rio, the Rio Declaration on Environment and Development defined a series of governing principles for responsible, sustainable development. Building on earlier efforts, these principles aim to protect global environmental integrity while achieving long-term economic progress. Recognizing the fundamental right of human beings to lead healthy and productive lives, the Rio Declaration’s 27 principles outline nations’ responsibilities to facilitate those rights. In particular, they must pursue sustainable development that equitably meets environmental and developmental needs of present and future generations. In principle, nations should:14 • Cooperate to eradicate poverty and decrease economic disparities • Balance production with consumption • Have polluters bear the cost of environmental degradation • Work individually and collectively to safeguard the Earth’s ecosystem with laws, treaties, and policies
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• Provide citizens with access to environmental information held by authorities so they can participate in decision-making • Recognize the particular roles that women, youths, and indigenous peoples play in environmental protection • Practice precaution—lacking full scientific certainty does not justify postponing cost-effective measures to prevent environmental degradation
Earth Charter Developed in 2000 by the Earth Charter Commission, the Earth Charter provides an ethical framework for building a just, sustainable, and peaceful world. Since its inception, over 6000 organizations have endorsed the Earth Charter. According to the Earth Charter Initiative, “The Earth Charter is acquiring the status of a soft law document … considered to be morally but not legally binding on state governments and often form the basis for the development of hard law.”15 Understanding the interdependence and fragility of the Earth, as our collective home, the Earth Charter acknowledges our broad cultural diversity. In the face of that diversity, it seeks to build a sustainable society “founded on respect for nature, universal human rights, economic justice, and a culture of peace.16 The Earth Charter recognizes four existing conditions: • The Earth is our home and the wellbeing of humanity depends on its resiliency • The benefits of development have not been equitably shared, which threatens global security • Survival requires fundamental changes to our values, institutions, and lifestyles • The responsibility for enacting change falls on each and every one of us Based on the existing conditions, the Earth Charter provides guidance for the transition to more sustainable living and development through 16 principles that address four primary concepts:17 1. Respect and care for the community of life, supporting participatory democracies and securing Earth’s bounty for future generations. 2. Protect and restore ecological integrity, prevent harm even in the face of limited knowledge, and adopt patterns of consumption that safeguard resources. 3. Support social and economic justice, ensuring activities and institutions eradicate poverty and further individual wellbeing equitably across all populations. 4. Practice democracy, nonviolence, and peace by strengthening democratic institutions, promoting lifelong learning, treating individuals with respect and supporting a culture of nonviolence, tolerance, and peace.
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Precautionary Principle In both the Rio Declaration and the Earth Charter, one particular principle stands out: the Precautionary Principle. In the context of sustainability, the principle of precaution encourages behavior that protects human and environmental health in the face of scientific uncertainty.
RELATED TOPICS • Restriction of Hazardous Substances (RoHS) Directive • Nuclear Power • Pollution Prevention (P2) • Endangered Species Act
UNESCO uses the following working definition for the Precautionary Principle: “When human activities may lead to morally unacceptable harm that is scientifically plausible but uncertain, actions shall be taken to avoid or diminish that harm. Morally unacceptable harm refers to harm to humans or the environment that is: • threatening to human life or health, or • serious and effectively irreversible, or • inequitable to present or future generations, or • imposed without adequate consideration of the human rights of those affected.”18
Principles of Environmental Law Governed by international agreements and treaties, principles of international environmental law help parties settle trans-border disputes on issues relating to the environment. Broad topics covered by environmental law include hazardous and nuclear waste, marine resources, ozone and pollution, wildlife and endangered species, sustainable development, and trade and the environment. Over time, the UNEP has identified the following eleven “emerging principles and concepts”19 that help guide international environmental law, some of which evolved out of Rio & Stockholm: 1. Sustainable Development, Integration and Interdependence 2. Inter-Generational Equity/Intra-Generational Equity 3. Proximity Principle (Transboundary Harm) 4. Transparency, Public Participation and Access to Information and Remedies 5. Cooperation, and Common but Differentiated Responsibilities 6. Precaution 7. Prevention 8. Polluter Pays Principle 9. Access and Benefit Sharing regarding Natural Resources 10. Common Heritage and Common Concern of Humankind 11. Good Governance
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Principles of Natural Systems
RELATED TOPICS
The six principles guiding the behavior of natural systems • Permaculture are said to have been developed by Charles Birch an Australian entomologist and religious scholar.20 Together with Paul Ehrlich, Birch argued that nature was change—an unwavering evolutionary process—not hovering in a “fragile balance”.21 Along with the basic laws of thermodynamics, Bill Mollison used Birch’s Six Principles of Natural Systems as a foundation for permaculture design. 1. Nothing in nature grows forever. There is a constant cycle of decay and rebirth. Continuation of life depends on the maintenance of the global biogeochemical cycles of essential elements, in particular carbon, oxygen, nitrogen, sulphur, and phosphorus. 2. The probability of extinction of populations or a species is greatest when the density is very high or very low—crowding and scarcity of a species may reach thresholds of extinction. 3. The chance that a species has to survive and reproduce is dependent primarily upon one or two key factors in the complex web of relations of the ecosystem. 4. Our ability to change the fate of the Earth increases at a faster rate than our ability to foresee the consequence of change. 5. Living organisms are not only the means, but the ends. In addition to their instrumental value to humans and other living organisms, they have an intrinsic worth.
Principles for Organizations Perhaps as many sets of organizational guiding principles exist as organizations themselves. Often grounded in higher level principles, they help public and private—both for-profit and nonprofit enterprises—build tailored sustainability strategies. Some organizational principles, such as the UN Global Compact (UNGC), focus broadly on TBL impacts. Others, like Ceres and the UN Guiding Principles on Business and Human Rights, place greater stress on a specific area of impact. Finally, principles have been developed to direct industry specific performance.
UN Global Compact The UNGC, developed in 1997, reflects principles for enterprises so they “meet fundamental responsibilities in the areas of human rights, labour, environment and anti-corruption.” The Principles’ numbers are shown below in parentheses (“P1” is “Principle 1” etc.): • Human Rights: (P1) Businesses should support and respect the protection of internationally proclaimed human rights; and (P2) make sure that they are not complicit in human rights abuses. • Labour: (P3) Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; (P4) the elimination of all forms of forced and compulsory labour; (P5) the effective abolition of child labour; and (P6) the elimination of discrimination in respect of employment and occupation.
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• Environment: (P7) Businesses should support a precautionary approach to environmental challenges; (P8) undertake initiatives to promote greater environmental responsibility; and (P9) encourage the development diffusion of environmentally friendly technologies. • Anti-Corruption: (P10) Businesses should work against corruption in all its forms, including extortion and bribery.22
UN Guiding Principles on Business and Human Rights In 2011 the UN Human Rights Council endorsed the “Guiding Principles on Business and Human Rights,” developed to guide implementation of the UN’s “Protect, Respect, and Remedy” Framework. These principles were originally drafted by Professor John Ruggie of Harvard and are sometimes referred to as the Ruggie Principles and Ruggie Framework. The 31 Principles address the responsibilities of governments and businesses, including “access to remedy” of abuses. The “Foundational Principles” for business enterprises include a responsibility to respect human rights” expressed in the Declaration on Fundamental Principles and Rights at Work put forward by the International Labour Organization (ILO). Among multiple enterprise responsibilities is to carry out “human rights due diligence,” which includes “assessing actual and potential human rights impacts, integrating and acting upon the findings, tracking responses, and communicating how impacts are addressed.23
Ceres Principles In 1989, in response to the Exxon Valdez oil spill, the US-based, globally-focused NGO now known as Ceres published the 10-point Ceres Principles for corporate environmental conduct (each topic listed below is supported by a proactive commitment statement, as shown for Principle 1): The Ceres Coalition includes 130-plus socially/environmentally responsible investors and public interest organizations.24 The Ceres approach to corporate governance principles has expanded to ESG/sustainability in its Ceres Roadmap for Sustainability, addressed in Chapter 10. 1. Protection of the Biosphere 2. Sustainable Use of Natural Resources 3. Reduction and Disposal of Wastes 4. Energy Conservation 5. Risk Reduction 6. Safe Products and Services 7. Environmental Restoration 8. Informing the Public 9. Management Commitment 10. Audits and Reports
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Equator Principles Based on International Finance Corporation (IFC) and the World Bank Group standards, the Equator Principles provide financial institutions with guidance for managing social and environmental risk. These principles have been adopted by 84 financial institutions in 35 countries, which together represent 70-plus percent of “international project finance debt in emerging markets.” Adopting institutions “commit to implementing the Equator Principles in our internal environmental and social policies” as well as “procedures and standards for financing projects.” The 2013 updated principles address: 1. Review and Categorisation 2. Environmental and Social Assessment 3. Applicable Environmental and Social Standards 4. Environmental and Social Management System and Equator Principles Action Plan 5. Stakeholder Engagement 6. Grievance Mechanism 7. Independent Review 8. Covenants 9. Independent Monitoring and Reporting 10. Reporting and Transparency25
Melbourne Principles for Sustainable Cities The Melbourne Principles for Sustainable Cities were developed in 2002 through a process fostered by UNEP and ICLEI – Local Governments for Sustainability (ICLEI). The ten principles encourage city governments to think long-term, recognize the value of ecosystems, empower people and networks to participate, promote sustainable production and consumption, and provide accountability/transparency.26
Principles for Production Practitioners can further tailor strategic principles to fit the needs of production. Two such examples, Industrial Ecology and the Hannover Principles are described below.
Industrial Ecology Industrial ecology offers a systems-based approach to production—conceptualizing the industrial processes as natural systems. Six principles of industrial ecology, which concerns the relationships of businesses to ecological health, were proposed in 1992:
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RELATED TOPICS • Cradle to Cradle/Gate/Grave • Circular Economy
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1. Create industrial ecosystems (e.g. close loops, treat waste as a resource, etc.) 2. Balance industrial inputs and outputs to natural levels 3. Dematerialization of industrial outputs (including use of recycled materials) 4. Improve the efficiency of industrial processes 5. Reduce environmental impacts of energy used 6. Adopt industrial-ecology-based economic policies e.g. internalize externalities, etc.27
Hannover Principles The various systems guiding development of more sustainable built environments (a.k.a. green buildings) are frequently based upon a set of principles. For example, the Living Building Challenge™ system includes 20 “imperatives” in the categories of Place, Water, Energy, Health & Happiness, Materials, Equity and Beauty.28
RELATED TOPICS • • • •
Cradle to Cradle/Gate/Grave LEED Living Building Challenge™ WELL Building
Sustainable built environment principles trace their origins largely to The Hannover Principles developed by William McDonough in 1992: 1. Insist on the right of humanity and nature to coexist. 2. Recognize interdependence. 3. Respect relationships between spirit and matter. 4. Accept responsibility for the consequences of design. 5. Create safe objects of long-term value. 6. Eliminate the concept of waste. 7. Rely on natural energy flows. 8. Understand the limitations of design. 9. Seek constant improvement by the sharing of knowledge.29
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ADDITIONAL RESOURCES • Yosef Jabareen, “Frameworks: Building a Conceptual Framework: Philosophy, Definitions, and Procedure,” 2009: https://www.researchgate.net/publication/265991064_Building_a_ Conceptual_Framework_Philosophy_Definitions_and_Procedure • John Elkington, Cannibals With Forks: The Triple Bottom Line of 21st Century Business, Wiley, 1999 • Darrell Brown, J.D.R.S.M., “Triple Bottom Line: A Business Metaphor for a Social Construct,” March, 2006: http://www.recercat.cat/bitstream/handle/2072/2223/UABDT06-2. pdf?sequence=1 • Mary Emery and Cornelia Flora, “Spiraling-Up: Mapping Community Transformation with Community Capitals Framework,” 2006: https://www.uvm.edu/rsenr/rm230/costarica/Emery-Flora-2006.pdf • Cornelia Butler Flora, Mary Emery, Susan Fey and Corry Bregendahl, “Community Capitals: A Tool for Evaluating Strategic Interventions and Projects,” 2014: http://wp.aae.wisc. edu/ced/wp-content/uploads/sites/3/2014/01/204.2-Handout-Community-Capitals.pdf • International Labour Organization (ILO), “The text of the Declaration and its follow-up”: http://www.ilo.org/declaration/thedeclaration/textdeclaration/lang--en/index.htm • UNEP, “Law division: Environmental Law”: http://www.unep.org/delc/EnvironmentalLaw/ tabid/54403/Default.aspx • Hardin Tibbs, “Industrial Ecology - An Environmental Agenda for Industry,” Global Business Network, 1993: http://static1.squarespace.com/static/570ce46bd51cd428a1ef3190/t/570ff3a186db43ff62349075/1460663202474/Industrial+Ecology.pdf
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Chapter Three Endnotes 1. 2. 3. 4.
5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24.
World Commission on Environment and Development, “Report of the World Commission on Environment and Development: Our Common Future,” 1987: http://www.un-documents.net/our-common-future.pdf Darcy E. Hitchcock and Marsha L. Willard, The Step-by-Step Guide to Sustainability Planning: How to Create and Implement Sustainability Plans in Any Business or Organization, Routledge, 2012. Karl-Henrik Robèrt, The Natural Step Story – Seeding A Quiet Revolution, New Society Publishers, 2002. The Natural Step, “The 5 Level Framework”: http://www.thenaturalstep.org/sustainability/5-levels/ and Karl-Henrik Robèrt, Strategic Leadership Toward Sustainability, 2004, excerpted: http://www.bth.se/ste/ tmslm.nsf/(WebFiles)/BDCBC034F303DF4DC1256FEA0037BC45/$FILE/Cover%20and%20Preface%20 FINAL%202.pdf The Natural Step, “The Science Behind Our Approach”: http://www.naturalstep.ca/the-science-behind-ourapproach The Natural Step, “Understanding the Problem”: http://www.thenaturalstep.org/sustainability/understanding-the-problem/ The Natural Step, “The Four System Conditions of a Sustainable Society”: http://www.thenaturalstep.org/ sustainability/the-system-conditions/ Op. cit. Karl-Henrik Robert, 2004 and The Natural Step, “What is Backcasting”: http://www.thenaturalstep. org/sustainability/backcasting/ John Elkington, “Chapter 1: Enter the Triple Bottom Line”: http://www.johnelkington.com/archive/TBL-elkington-chapter.pdf Allen L. White, “Redefining corporate disclosure,” OECD Observer: http://www.oecdobserver.org/news/archivestory.php/aid/788/Redefining_corporate_disclosure_.html Op. cit. John Elkington, 2004 Department of Sociology at Iowa State University, “Community Capitals”: http://www.soc.iastate.edu/staff/ cflora/ncrcrd/capitals.html Darcy Hitchcock and Marsha Willard, “Sustainability Circus: Bringing the Major Frameworks and Indicators Under One Tent (TBL, ESG, TNS, GRI),” ISSP Insight, 2010: http://www.sustainabilityprofessionals. org/sites/default/files/ISSP%20Sust%20Circus.pdf UNEP, “Rio Declaration on Environment and Development,” http://www.unep.org/documents.multilingual/ default.asp?documentid=78&articleid=1163 Earth Charter Initiative, “What Is The Earth Charter?”: http://earthcharter.org/discover/what-is-the-earthcharter/ Earth Charter Initiative, “The Earth Charter”: http://earthcharter.org/invent/images/uploads/echarter_english.pdf Ibid. World Commission on the Ethics of Scientific Knowledge and Technology (COMEST), “The Precautionary Principle,” 2005: http://unesdoc.unesco.org/images/0013/001395/139578e.pdf UNEP, “Training Manual on International Environmental Law,” Chapter 3: http://www.unep.org/delc/Portals/119/publications/UNEP_Training_Manual_Int_Env_Law.pdf Bill Mollison, “Extracts from Permaculture: A designers Manual,” 1988: http://garden.menoyot.com/assets/ blogAssets/garden/Bill_Mollison_Principles_and_Systems.pdf David Michael Steffes, “The “eco-worldview” of Charles Birch: Biology, Environmentalism, and Liberal Christianity in the 20th Century”, page 349, 2008: http://cas.ou.edu/Websites/oucas/images/hsci/Steffes-Abstract.pdf UNGC, “The Ten Principles of the UN Global Compact”: https://www.unglobalcompact.org/what-is-gc/ mission/principles UN Office of the High Commissioner on Human Rights (UNHCR), “Guiding Principles on Business and Human Rights – Implementing the UN ‘Protect, Respect and Remedy’ Framework,” 2011: http://www. ohchr.org/Documents/Publications/GuidingPrinciplesBusinessHR_EN.pdf CERES, “The CERES Principles”: http://www.ceres.org/about-us/our-history/ceres-principles
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25. Equator Principles Association, “The Equator Principles”: http://www.equator-principles.com/ 26. Sustainable Melbourne, “Vision – The Melbourne Principles for Sustainable Cities”: http://www.sustainablemelbourne.com/visions/the-melbourne-principles-for-sustainable-cities/ 27. The Global Development Research Center, “Sustainability Concepts – Industrial Ecology”: http://www.gdrc. org/sustdev/concepts/16-l-eco.html 28. International Living Future Institute, “Living Building Challenge 3.0 – A Visionary Path to a Regenerative Future,” 2014: https://living-future.org/sites/default/files/reports/FINAL%20LBC%203_0_WebOptimized_low.pdf 29. William McDonough and Michael Braungart, “Celebrating 20 Years – The Hannover Principles”: http:// www.mcdonough.com/wp-content/uploads/2013/03/HP+20_email_121023.pdf
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CHAPTER FOUR Systems Thinking and Interdependencies Chapter Table of Contents Purpose. . ................................................................................................................................. 67 Overview................................................................................................................................ 67 Systems Structure and Behavior.. ................................................................................................ 68 Stocks and Flows.......................................................................................................... 69 Dynamic Equilibrium and Complexity............................................................................. 69 Feedback Loops............................................................................................................ 69 Constraints................................................................................................................. 70 Resilience, Self-Organization, and Hierarchy.. .................................................................. 70 System Archetypes....................................................................................................... 70 Applying Systems Thinking....................................................................................................... 71 Mindsets and Mental Models.. ........................................................................................ 71 Leverage Points. . .......................................................................................................... 72 Examples of Interdependencies................................................................................................... 72 Human Behavior, Energy, and Climate Change................................................................. 72 Food, Water, and Energy Nexus...................................................................................... 73 Sustainable Agriculture and Reducing Hunger.................................................................. 74 Additional Resources................................................................................................................ 75 Chapter Four Endnotes.. ....................................................................................................... 76
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PURPOSE At an organization level, pursuing sustainability involves addressing complex problems involving many interdependent variables. It is necessary, therefore, for sustainability professionals to be skilled at systems thinking. Sustainability professionals need to avoid pursuing strategies that fail to address the root cause of a problem. Instead, they need a good grasp of the basic principles of causal loops, system archetypes, dynamic complexity, and other key concepts related to systems thinking.
OVERVIEW “If our species is to survive the predicaments we have created for ourselves, we must develop a capacity for whole-systems thought and action. Whole-systems thinking calls for skepticism about simplistic solutions, willingness to seek connections between problems and events that conventional discourse ignores, and the courage to delve into subject matter that may lie outside our direct experience and expertise.” — David Korten, 20011 “Having a systems perspective brings nothing less than joy because it creates endless sources of intellectual pleasure. Asking “And what causes that?” or “What impacts does that have?” can lead one down endless trails of discovery and understanding.” — Alan AtKisson, 20132 The sustainability frameworks in the previous chapter are all versions of a whole systems approach to sustainability performance. Neglecting to apply a whole systems approach potentially diminishes their effectiveness. A system can be defined as “an interdependent group of agents working together as a whole.” Further, the imperative to use whole systems thinking is that the “behavior of complex systems is not comprehensible by searching for single causes or by trying to reduce problems into their separate components for individual analysis.”3 Sustainability approaches based upon the use of whole systems thinking help decision-makers: • Understand the problem, particularly complex ones • Develop potential solutions • Implement synergistic solutions According to systems expert Donella Meadows: “A system is a set of things, people, cells, molecules, or whatever, interconnected in such a way that they produce their own internal dynamics. The system may be buffeted, constricted, triggered, or driven by outside forces. But the system’s response to these forces is characteristic of itself, and that response is seldom simple in the real world.”4 What thwarts system thinking, says Meadows, is that: “Ever since the Industrial Revolution, Western society has favored science, logic, and reductionism over intuition and holism. Psychologically and politically, we would much rather assume that the cause of a problem is ‘out there,’ rather than ‘in here.’ It’s almost irresistible to blame something or someone else, to shift responsibility away from ourselves, and to look for the control knob, the product, the pill, the technical fix that will make a problem go away.”5 But Meadows clarifies that both types of thinking are helpful:
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“I don’t think the systems way of seeing is better than the reductionist way of thinking. I think it’s complementary, and therefore revealing. You can see some things through the lens of a human eye, other things through the lens of a microscope, others through the lens of a telescope, and still others through the lens of systems theory. Each way of seeing allows our knowledge of the wondrous world in which we live to become a little more complete.”6 Biologist Garrett Hardin illustrated the importance of a systems approach in expressing what it means to understand the Earth’s ecology. He noted that while being “literate” is to understand words and “numerate” is to understand numbers, being “ecolate” is characterized by striving to understand the system. Hardin cautions that: “The natural world is organized into a web of life more complex than we know. We have only a limited ability to predict what will happen in time as the result of any intervention, however well meant, in the natural order of things. Caution and humility are the hallmarks of the ecolate attitude towards the world.”7 As described by David Peter Stroh in Systems Thinking for Social Change, the benefits of systems thinking are that it: • Increases awareness of how individuals might be contributing to the problems they want to solve • Empowers individuals to have greater impact on others by shifting intentions, thinking, and actions • Mobilizes diverse stakeholders to take actions that increase the effectiveness of the whole system over time instead of meeting their immediate self-interests • Helps problem solvers anticipate and avoid the negative longer-term consequences of well-intentioned solutions • Identifies high-leverage interventions that focus limited resources for maximum, lasting, system-wide improvement • Motivates and supports continuous learning8
SYSTEMS STRUCTURE AND BEHAVIOR Understanding the elements of systems both reveals the value of systems thinking and offers a framework for identifying intervention points and facilitating comprehensive sustainability performance. According to Donella Meadows, systems are made up of a number of interconnected elements: • Stocks, Flows and Dynamic Equilibrium • Feedback loops • Shifting Dominance, Delays, and Oscillations • Scenarios and Testing Models • Constraints • Resilience, Self-Organization, and Hierarchy • Mindsets and Models
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Stocks and Flows According to Meadows, stocks and flows “are the bedrock of any system.”9 Stocks are typically the physical assets of a system – for example, the amount of water in a bathtub. Stocks change via the flows of the system, movements of physical assets, such as water flowing into the tub or out the drain. A system’s state is the condition or amount of “whatever standing stock is of importance.”10 Perception of state varies by situation. An example is that of groundwater which accumulates over millions of years in aquifers—the rapid withdrawal in a matter of a few decades for agricultural or industrial use, will deplete the stock significantly. In contrast, the state of the Earth’s atmosphere could be described in terms of the increasing stock of GHGs, the inflow of which far exceeds the natural outflows through sequestration or breakdown.
Dynamic Equilibrium and Complexity Systems, especially large ones, are difficult to predict in terms of both behaviors and outputs. The term “dynamic complexity” captures the fact that system changes will often result in unpredictable outcomes. The dynamic complexity of economies, with numerous variables at work, make it challenging to predict the outcomes of new policies or initiatives. For example, carbon taxes, designed to discourage the use of fossil fuels and incentivize renewables, would make carbon-based fuels less price competitive and divert funds from other investments, with unpredictable consequences. Systems in which stocks remain relatively constant due to balancing inward and outward flows are said to be in a state of dynamic equilibrium. For example, the water level in a reservoir in equilibrium would remain level, despite the throughput of water. It is often hard to detect changes to large systems in equilibrium as they may initially absorb change with little visible disruption. An ecological example is the moderating effect of the oceans which, due to their size, have a vast capacity for absorbing heat without a significant discernable change in temperature. This has slowed atmospheric warming significantly below what would be expected based on the heat-trapping potential of the growing concentration of GHGs. Scientists estimate that the oceans have delayed the rise in surface temperatures by anywhere from 10-100 years.11
Feedback Loops Carefully examining the dynamics of systems helps us understand the effect of various feedback loops. Reinforcing loops exhibit positive feedback, generating exponential growth or collapse at an increasing rate, causing runaway behavior that strengthens with each iteration. For example, a for-profit business is designed so profits are a positive feedback. These profits allow the business to expand and improve its competitiveness, producing even more profits. Climate change is made worse by various positive feedback loops, including that a warming planet releases a potent GHG, methane, from frozen soil – increasing the warming effect. A negative feedback loop is where one parameter dampens the operation of another parameter in the system (or, alternatively, offers a helpful restraint as a correcting loop). Two examples of these balancing loops include: • The body’s temperature regulating system that, when overheated, emits sweat, which has a cooling effect and lowers the temperature and keeps it from spiraling out of control.
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• The concept of “price elasticity of demand” on consumer goods, where higher prices create less demand and greater supply causes prices to decline.
Constraints Systems do not exist in isolation, although the level of interaction with outside elements depends on their nature. Systems that do interact with their environment are considered to be open systems, businesses or governments, for example. Other types of systems are closed to interaction with others. Except for receiving energy from the sun, the Earth is a closed system. Both types of systems have constraints—internal and external to the system—that limit the way they operate and define their needs. Businesses and governments, for example, must follow prescribed mores and laws, even as their organizational structures limit how they succeed. Because they don’t interact with outside forces, closed systems must exhibit self-sufficiency. For this reason, planet Earth must live within its means—constrained by the ability of the sun to replenish energy and matter.
Resilience, Self-Organization, and Hierarchy Fortunately, systems have a natural ability to function within their constraints. The ability to self-organize, create a hierarchical structure, and adapt, make systems resilient. According to Meadows, “The capacity of a system to make its own structure more complex is called self-organization.”12 In enterprises, self-organization refers to the ability of people to organize projects according to the team’s specific needs for success, rather than having a management structure imposed on them. Such flexibility creates more complexity, with potential benefits and challenges for the overall system. Taking a systems perspective to strategic planning offers resiliency and provides a flexible way to successfully manage operations.
System Archetypes An archetype perspective is one that looks for common traits that help identify likely behaviors (e.g., “artists” or “innovators”13). According to Meadows, system archetypes (referred to as “traps and opportunities”) are “system structures that produce common patterns of problematic behavior.”14 Certain combinations of reinforcing and balancing feedback loops commonly occur in systems, each with a common theme and structure: • Fixes that backfire/fail – Problems recur despite efforts to fix them • Shifting the burden – Recurring problems need more and more of the fix to be kept under control • Limits to growth/success – Seemingly limitless growth allows operators to mask problems. When problems emerge, existing practices take great effort and have little impact • Tragedy of the commons – Common resources become depleted because they belong to everyone and, therefore, no one • Accidental adversaries – Partners behave as adversaries because one of them undermines the other unintentionally • Escalation – Parties continually try to outperform one another • Drifting/eroding goals – Lowering goals to meet lower performance • Success to the successful – Past success attracts future investment and greater resources, which
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leads to more success • Growth and underinvestment – Potential growth is never achieved due to lack of concrete evidence to support investment15
APPLYING SYSTEMS THINKING “The shift from a fragmented worldview to a whole systems mental model is the significant leap our culture must make – framing and understanding living system relationships in an integrated way.” — Bill Reed, 200616
RELATED TOPICS • • • •
Industrial ecology Circular economy Cradle to Cradle Certified™ VISIS
Mindsets and Mental Models Everyone—individually and collectively—has deeply held beliefs, or mindsets, that govern the way they see the world. So deeply held, in fact, that changing these world views can be one of the biggest challenges facing sustainability practitioners. Nonetheless, switching from a linear mindset to systems thinking approach is the only way to work efficiently within a complex world. Our mental models, often unexamined, can strongly influence how we view a particular situation. For example, many businesspeople have a mental model that pursuing sustainability will mean less profitability. This concept is particularly pertinent to people’s understanding of dynamic systems and their ability to implement change. As summarized by Meadows: 1. “Everything we know about the world is a model. Every word and every language is a model. So are the ways I picture the world in my head – my mental models. None of these is, or ever will be, the real world. 2. “Our models usually have a strong congruence with the world. That’s why we are such a successful species in the biosphere. 3. “Conversely, our models fall far short of representing the world fully. In our heads, we can only keep track of a few variables at one time. We often draw illogical conclusions from accurate assumptions. Few of us can intuit how to damp oscillations in a complex system.”17 One particularly pervasive mental model is what Rebecca D. Costa refers to as “super–memes.” Super-memes can become so pervasive, so stubbornly embedded, as to contaminate or suppress all other beliefs and behaviors in a society. As foundations of resistance, especially in high consumption industrialized countries and communities, Costa suggest they should inform governance strategies.18 • Irrational Opposition – rejecting rational solutions becomes the norm • The Personalization of Blame – Foisting the responsibility for complex problems onto the shoulders of individuals • Counterfeit Correlation – Accepting correlation as proof of causation, using reverse-engineering to manipulate evidence, and relying on consensus to determine facts • Silo Thinking – Compartmentalized thinking and behaviors that prohibit the collaboration needed to address complex problems
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• Extreme Economics – Simple business principles, such as profit/loss, become the litmus test for determining the value of people, initiatives and institutions19 Mental models can also provide a way of building a shared view of how a system is functioning. Therefore, creating a system map that details the stocks, flows, and feedback loops, can provide deep insights into system behavior.
Leverage Points Leverage points are places in a system “where a small shift in one thing can produce big changes in everything.”20 Donella Meadows identified the following leverage points for system intervention, which she listed in increasing order of effectiveness: 12. Constants, parameters, numbers (e.g. subsidies, taxes, standards). 11. The size of buffers and other stabilizing stocks, relative to their flows. 10. The structure of material stocks and flows (e.g. transport networks, population age structures) 9. The lengths of delays, relative to the rate of system change. 8. The strength of negative feedback loops, relative to the impacts they are trying to correct against. 7. The gain around driving positive feedback loops. 6. The structure of information flows (who does and does not have access to information). 5. The rules of the system (e.g. incentives, punishments, constraints) 4. The power to add, change, evolve, or self-organize system structure. 3. The goals of the system. 2. The mindset or paradigm out of which the system – its goals, structure, rules, delays, parameters – arises. 1. The power to transcend paradigms.21
EXAMPLES OF INTERDEPENDENCIES This section explores topics that illustrate the interdependent nature of the world around us, demonstrating why understanding systems thinking is a core sustainability issue.
Human Behavior, Energy, and Climate Change Addressing climate change involves understanding numerous complex systems. An obvious set of systems involves the anthropogenic and natural global emissions of GHGs and their varying climate change potency. Another set of systems involves the role of “carbon sinks,” such as soil, trees and plants, and oceans. However, equally important are the economic and social systems that influence, first, the human technologies and behaviors around energy consumption and, second, the actions of individuals, organizations, and communities to address (or not) climate change. These include: 1. Anthropogenic greenhouse gas (GHG) emissions, their causes and impacts on Earth’s climate. 2. Absorption of GHG from the atmosphere and how humans impact “carbon sinks” through deforestation, agriculture, and ecosystem health.
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3. Global and local economic and social systems that makes use of fossil fuel easier and more cost effective given existing infrastructure, including patterns of land use and modes of transportation. 4. Collective action humans have begun to take to mitigate damages already caused and to slow further degradation. Each of these systems contain not only their own complexity but interrelate and influence each other. For example, people choose to burn CO2 emitting fuels, not because they wish to overwhelm the atmospheric system with an inflow of GHGs that can’t be balanced with a corresponding outflow, but because fossil fuels are inexpensive. Thus, reductions in fossil fuel-based CO2 emissions are largely a function of the comparative cost-effectiveness of non-CO2 producing alternatives, including energy efficiency and sustainable energy sources. In other words, the most important stock in the average person’s GHG production system is the financial resources it requires. To maintain a state of equilibrium in this personal financial system, sustainable energy must not require a greater outflow of financial stock than fossil fuels. Yet even personal budgets are complex economic systems. If a driver acquires a more fuel efficient car, for example, he or she may drive it more, knowing the net fuel costs will not increase. Consequently, the potential reduction of CO2 emissions may be diminished by the fact that the driver’s stock of financial resources will not be reduced by driving more. This particular issue is further complicated by the persistent low cost of fossil fuels, which makes striving for efficiency or being willing to invest in non-CO2 emitting alternatives less important if the state of one’s personal financial stock is a person’s chief concern, as is the case of people struggling financially.
Food, Water, and Energy Nexus The three resources most in-demand by the growing global population are food, water and energy — each linked to the other two in often complicated ways. Consequently, trying to address availability of a particular resource invariably raises challenges around the other two. This is often referred to as the “nexus” between food, water, and energy. Food and water are linked in multiple ways. For example, crop choices impact water availability as do dietary habits. Many regions of the world grow crops that require lots of water throughout the year, straining the local aquifers and making them vulnerable to prolonged droughts. Similarly, the increase in meat consumption in developing countries is cause for concern as the amount of water required to make 1 kg of beef or chicken is considerably higher than for the same quantity of plant matter.22 Energy production uses enormous amounts of water—to run cooling equipment, create steam to run turbines, generate hydroelectricity, and hydraulic fracturing. In each case, water taken from an underground aquifer, surface reservoir or even the ocean, becomes unavailable for other purposes such as agriculture, industry, and household use. As regions around the world struggle with water scarcity, it is important to find ways to lower the water footprint of the energy industry. While utilizing more water efficient designs is important, some of the biggest gains have come by increasing energy efficiency of consumer appliances such as a clothes washer. In doing so, the net energy required goes down, and this in turn lowers the water used upstream.23 Finally, there is an increasing overlap between food and energy based on the growth of the biofuels industry. For example, corn is grown as a raw material for ethanol that, when blended with conventional fuels boosts octane. Yet, expanding the market for corn increases demand for the crop, raising
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prices, which disproportionately impacts low income families. A possible solution to this food versus fuel dilemma is the development of, so-called, “second generation” biofuels that utilize the non-edible components of the corn plant. Food and energy also intersect around transportation. With the advent of globalization, it is very common to find basic foods like fruits, vegetables, and meats that are grown in one part of the world but consumed in faraway places. Like a water footprint, each food item also has a carbon footprint resulting from its transport, and contributes to climate change. In response to this, there is a growing trend towards growing and eating local foods. But the solution is not that simple. For example, which would be a more sustainable option: a meat based diet that focused on local sourcing or a plant based diet that sourced foods from far away? Understanding these life cycle challenges is important to succeeding as sustainability professionals.
Sustainable Agriculture and Reducing Hunger Zero Hunger, one of the UN’s Sustainable Development Goals (SDGs) for 2030, seeks to “end hunger, achieve food security and improved nutrition, and to promote sustainable agriculture.” The urgency of this goal is underscored by the fact that world population is expected to increase through mid-century by 2 billion. As of 2014, 795 million people are “chronically undernourished, often as a direct consequence of environmental degradation, drought and loss of biodiversity.”24 There are many different reasons for people not having enough nutritious food to eat. For example, low crop yields, food perishing before it reaches the consumer, income inequality, and economics that favor low quality, high calorie foods. Genetically modified organisms (GMOs) can help increase crop yields as could sustainable agricultural practices. GMO crops have received a lot of attention because they can potentially resist certain pests, however, the precautionary principle should be used when considering any new introduction into an ecosystem. Sustainable agricultural practices have been around for thousands of years and involve re-use of animal waste as a fertilizer, biological pesticides and multi-cropping to maintain soil fertility. Allowing food to be stored properly and arranging for its transport to the destination is critical to getting it to the end consumer. Increasingly people are starting to look for local foods that reduce the carbon footprint of their meal. Finally, income inequality and policies that favor low quality foods are best addressed through governmental intervention. Food assistance programs exist to enable those of insufficient means the ability to feed themselves and their families. Reducing hunger, therefore, is best achieved through a systems approach that uses a combination of technology, logistics and policy shifts to deliver the intended results.
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ADDITIONAL RESOURCES • Peter M. Senge, The Fifth Discipline: The Art & Practice of the Learning Organization, Doubleday, 2006. See pages 389 to 400 for his description of systems archetypes. • Barrett C. Brown, “The Four Worlds of Sustainability – Drawing Upon Four Universal Perspectives to Support Sustainability Initiatives,” Next Step Integral, 2007: http://nextstepintegral.org/wp-content/uploads/2011/04/Four-Worlds-of-Sustainability-Barrett-C-Brown.pdf • Ken Wilber, “Introduction to the Integral Approach (and the AQAL Map),” 2006: http:// www.kenwilber.com/Writings/PDF/IntroductiontotheIntegralApproach_GENERAL_2005_ NN.pdf • Simon A. Levin and William C. Clark, “Toward a Science of Sustainability,” Harvard Kennedy School of Government, 2010: https://www.hks.harvard.edu/content/download/69163/1249462/version/1/file/196.pdf • Robert Max Holmes, et al., “Permafrost and Global Climate Change,” Woods Hole Research Center, 2015: http://whrc.org/wp-content/uploads/2015/06/PB_Permafrost.pdf • John Seely Brown, The Power of Impossible Thinking, Chapter 1: Mental Models and Mindsets, 2004 http://catalogue.pearsoned.co.uk/samplechapter/0131877283.pdf
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Chapter Four Endnotes 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24.
David Korten, When Corporations Rule the World, 2nd Ed., Kumarian Press, 2001. Alan AtKisson, Sustainability Is for Everyone, written in conjunction with his induction in the ISSP Hall of Fame, ISIS Academy, 2013, available at www.isisacademy.com Stephen Menendian and Caitlin Watt, “Systems Thinking and Race,” Kirwan Institute for the Study of Race and Ethnicity, 2009: http://kirwaninstitute.osu.edu/docs/systems_thinking_and_race_primer_july2009.pdf Donella H. Meadows, Thinking in Systems – A Primer, Sustainability Institute, 2008 Ibid. Ibid. Garrett Hardin, Filters Against Folly – How to Survive Despite Economists, Ecologists and the Merely Eloquent, Penguin Books, 1985, pp. 22-25. David Peter Stroh, Systems Thinking for Social Change – A Practical Guide to Solving Complex Problems, Avoiding Unintended Consequences, and Achieving Lasting Results, Chelsea Green, 2015. Donella Meadows, “Leverage Points: Place to Intervene in a system,” 1999: http://www.donellameadows.org/ wp-content/userfiles/Leverage_Points.pdf Ibid. See “The Role of Oceans in Climate” at http://www.oco.noaa.gov/roleofOcean.html Op. cit. Donella H. Meadows, 2008 See, for example, Caroline Myss, “Determining Your Archetypes” https://www.myss.com/free-resources/sacred-contracts-and-your-archetypes/determining-your-archetypes/ Op. cit. Donella Meadows, 2008 John D. Sterman, “Sustaining Sustainability: Creating a Systems Science in a Fragmented Academy and Polarized World” http://jsterman.scripts.mit.edu/docs/Sterman%20Sustaining%20Sustainability%206-19.pdf Bill Reed, “Shifting our Mental Model – “Sustainability” to Regeneration,” Integrative Design Collaborative and Regenesis website, April 2006, at: http://www.integrativedesign.net/images/ShiftingOurMentalModel.pdf Op. cit. Donella H. Meadows, 2008 Rebecca D. Costa, The Watchman’s Rattle – A Radical New Theory of Collapse, Vanguard Press, 2010 Ibid. Op. cit. Donella Meadows, 1999 Ibid. Environmental Working Group, “Climate and Environmental Impacts” http://www.ewg.org/meateatersguide/a-meat-eaters-guide-to-climate-change-health-what-you-eat-matters/climate-and-environmental-impacts/ See, for example, Collin Dunn, “Washing Laundry in Cold Water is the same as:” Treehugger, 15 Dec. 2008: http://www.treehugger.com/culture/washing-laundry-in-cold-water-is-the-same-as.html UNDP, “Goal 2: Zero Hunger”: http://www.undp.org/content/undp/en/home/sdgoverview/post-2015-development-agenda/goal-2.html
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CHAPTER FIVE Benefits of Sustainability Practices Chapter Table of Contents Purpose. . ................................................................................................................................. 78 Overview................................................................................................................................ 78 Enterprise Practices and Benefits................................................................................................ 79 More Sustainable Products/Services................................................................................ 79 Products as Services. . .................................................................................................... 80 Zero Waste.................................................................................................................. 81 Carbon Neutral............................................................................................................ 82 Water Neutrality.......................................................................................................... 83 Social Practices and Benefits . . .................................................................................................... 83 Work Environment....................................................................................................... 83 Charitable Contributions.............................................................................................. 84 Community Involvement. . ............................................................................................. 84 Supplier and Value Chain Relations................................................................................ 85 Governance Practices and Benefits............................................................................................. 85 Transparency............................................................................................................... 85 Summary of Sustainability Benefits............................................................................................. 86 Reduced Expenses........................................................................................................ 87 Increased Employee Productivity.................................................................................... 87 Reduced Hiring and Attrition Expenses........................................................................... 87 Reduced Risks. . ............................................................................................................ 87 Increased Profitability and Capital Attraction.................................................................. 88 Additional Resources................................................................................................................ 89 Chapter Five Endnotes......................................................................................................... 90
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PURPOSE A sustainability professional is often called upon to justify the pursuit of sustainable practices, which requires understanding and being able to communicate why sustainability is important to the Earth and to those operating within its system. They can do this by becoming familiar with research that demonstrates the benefits that can be derived from pursuing sustainability as well as the potential costs and risks of unsustainable practices in order to craft a compelling and defensible “business case” for sustainability. This will allow the sustainability professional to help organizations, communities, and regions find their own recipe to gain the competitive benefits that sustainability offers – to make products/services and conduct operations that are better in all respects.
OVERVIEW “Companies with sustainable products and services experienced revenue growth of 91% 2010-2013 while overall revenues grew 15%.” — The Conference Board, 20151 Sustainability professionals will frequently be asked “Why should we do this sustainability project/ initiative?” The answer must be in the context of compelling reasons for the enterprise, and for humanity in general. Sustainability information sources have compiled thousands of examples of enterprises achieving sustainability advantages in the past twenty years. This chapter lists only a few as illustration. The sustainability professional’s “advantage” is to know which examples to apply when illustrating the case for a new initiative, or to refine existing initiatives. Sustainability thought leader and ISSP Sustainability Hall of Fame member, Bob Willard advises asking what he calls the “Big 3 Whys” and the “Ultimate 10 Whys”2, shown in the figure below.
Figure 8: Business Case Justifications and Elements (Illustration Courtesy of Bob Willard, Future Fit Business Benchmark)
The sustainability benefits that Willard mentions can be summarized as follows: • It’s the right thing to do and is aligned with the organization’s purpose and values • To capture financial opportunities:
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¤ Increased revenue and market share ¤ Reduced expenses—especially of energy, materials, waste, and water ¤ Reduced human resources expenses through increased employee engagement and productivity ¤ Reduced hiring and attrition expenses • Reduced risks – related to all of the above3 Consultant Kevin Wilhelm suggests addressing the question of sustainability advantage from the viewpoint of the person who is asking the question, both in terms of that person’s primary job responsibilities and personal values, of the person you are working with to find sustainability advantages for the enterprise. For example, for an accountant the advantage may include decreasing expenses and improving profitability. For a fleet manager the advantage may include saving on fuel and delivery time.4 Many sustainability practices provide benefits across the social, environmental, and economic areas. For example: • Using less energy, materials, or water to make products benefits the environment and reduces costs, which provides economic benefits. • Such waste reductions may also improve employee morale and productivity as employees know that waste has a negative impact on their own salaries, and working for an employer making environmentally responsible decisions adds an additional sense of purpose to one’s work. • Likewise, employee productivity gains often accompany community and charitable contributions—both in the attraction of higher quality employees and through offering employees additional motivation on the job. It is helpful to be able to identity all the benefits of a sustainable practice in order to understand the true value of incorporating these practices into an organization’s operations. The rest of this chapter provides examples of sustainable practices and their benefits. Note that the mention of specific organizations is not intended to be an endorsement, rather these examples are intended to encourage sustainability practitioners to learn from what others are doing. It should also be noted that there is a difference between setting goals and achieving those goals. Setting lofty goals is an important first step but measuring and reporting on results is required to ensure progress is made.
ENTERPRISE PRACTICES AND BENEFITS More Sustainable Products/Services Higher sustainability performance of an enterprise’s products or services is likely to be at the core of its overall performance. Some products’ sustainability impact comes mainly during their manufacture, while others products—especially those that use energy, water, or materials in their operation—make a larger impact during their life cycle of use by customers. For example, only 12% to 28% of a motor vehicle’s total life cycle carbon emissions generally comes from the raw materials assembly, manufacturing, and distribution energy prior to consumer use.5 More sustainable products/services are: • More durable
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• Dematerialized (i.e., use less materials to accomplish the same work or value) • Energy and water efficient • Less toxic to make and use • Circular economy friendly (made of reused or recycled materials and easily recyclable or reusable) Product quality is a cornerstone of pursuing sustainability, especially for producers of durable goods expected to last for several years. Producing such goods requires large investments of energy and materials. Therefore, an item that lasts twice as long because of its quality (or repairability) is twice as “productive” regarding those investments.6 Quality in the manufacturing process, epitomized since the 1990s by using best practices and an ISO 9001 standard quality management system, is a method for reducing materials waste throughout the value chain. These gains come primarily through minimizing outputs rejected due to unacceptable quality. It is common for sustainability-oriented enterprises to adopt both a quality management system and an environmental management system, which can be operated in a synergistic manner.7 A typical example of an enterprise addressing their negative impacts through combining environmental, quality and workplace safety management is First Solar’s use of ISO 14001 for environmental management, ISO 9001 for quality management and OHSAS 18001 for occupational safety.8 Finally, product quality is reflected in the energy, water, and materials efficiency of the product during use if inputs such as electricity, fuels, chemicals, or water are required.
Products as Services Manufactured product value chains typically contain at least a dozen contracts between suppliers, manufacturers, and customers—all of which may or may not contain financial or performance incentives towards sustainability performance. One strategy that emerged in the late 1990s to better infuse value chains with sustainability incentives is the transition from selling products to selling services of the products, known as Product Service Systems (PSSs). For example, if an auto manufacturer, instead of buying paint from a paint supplier, purchases the service of a “painted car” for a fixed price, the supplier’s incentive has switched from maximizing paint sales to minimizing waste. The UNEP and many sustainability advocates have promoted PSSs as a sustainability performance solution. According to UNEP: “The key idea behind product service systems is that consumers do not specifically demand products, per se, but rather are seeking the utility these products and services provide. By using a service to meet some needs rather than a physical object, more needs can be met with lower material and energy requirements. “A product service system is a competitive system of products, services, supporting networks and infrastructure. The systems includes product maintenance, parts recycling and eventual product replacement, which satisfy customer needs competitively and with lower environmental impact over the life cycle.”9 Beyond reduced consumption of physical resources (and related costs), the benefits of PSSs are rooted in the addition of services to the functionality of many traditional products:
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“The customer benefits from a restructuring of the risks, responsibilities and costs traditionally associated with ownership. The supplier/manufacturer can improve their competitiveness as these ‘solutions’ may be clearly differentiated from product-based offerings while simultaneously retaining asset ownership that can enhance utilization, reliability, design and protection.”10 This opens the business potential for new revenue streams and allows market expansion among customers seeking a product functionality at a lower cost. According to the Circular Economy Toolkit website, product service systems include: • Pay per service unit – The customer pays each time they use the service. The provider is responsible for all life cycle costs so is incentivized to design a product which is optimized for usage, maintenance, reuse of parts or products, and remanufacture and recycling. • Product renting or sharing – The customer pays to access the product for a certain period and other customers sequentially use the product. • Product Lease – Ownership is still retained by the provider but the customer has continuous access to the product. • Product pooling – The product is simultaneously used by many customers.11 The growing “sharing economy” is a derivation of PSS concepts. Experts expect such systems to foster dramatic reductions in the life cycle throughputs compared to traditional ownership patterns.12
Zero Waste Enterprise leaders intuitively dislike waste, whether of time, money, or other resources. Consequently, “zero waste” goals became a popular sustainability and profitability strategy beginning in the 1990s. The strategy revolves around systems, such as lean manufacturing, that closely connect inputs with outputs and manage entire value chains. The Zero Waste International Alliance (ZWIA) was established by experts beginning in 2002 “to assist businesses and communities in defining their own goals for zero waste.”13 It adopted the first peer-reviewed internationally accepted definition of zero waste in 2004 and adopted the following revised definition in 2009: “Zero waste means designing and managing products and processes to systematically avoid and eliminate the volume and toxicity of waste and materials, conserve and recover all resources, and not burn or bury them.”14 According to ZWIA, implementing zero waste “will eliminate all discharges to land, water or air that are a threat to planetary, human, animal or plant health.” In addition, ZWIA’s 10 business principles include: • establishing “clear accounting and reporting systems” that provide life cycle environmental impact information on products and services • creating takeback systems for products and packaging • designing and evaluating value chain systems to eliminate waste • continual evaluation of waste handling markets to recover the highest value of wastes • encouraging customers, workers and suppliers through economic incentives to eliminate waste and maximize reuse15
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Consequently, the benefits of zero waste reach beyond an enterprise’s operations to include supply chain and customers. Reporting systems provide stakeholders a basis for informed decisions about risks and benefits, and takeback systems and incentives promote sustainable behavior in the larger community. Greater efficiency throughout the system also provides financial benefits, including reduced materials and waste disposal costs. In short, “zero waste is a goal that is ethical, economical, efficient, and visionary, to guide people in changing their lifestyles and practices to emulate sustainable natural cycles, where all discarded materials are designed to become resources for others to use.”16
Carbon Neutral The terms carbon neutral and climate neutral, like zero waste, are aspirational strategies often associated long-term goals. Both terms concern a process or plan designed to “credibly neutralize” greenhouse gas (GHG) emissions through a combination of energy efficiency, fuel switching, and the purchase of carbon offsets. Leading-edge corporations made climate or carbon neutral commitments in the mid2000s. The preferred process, according to the Global Carbon Project, is to “first reduce all possible emissions and impacts and then contribute to a measured reduction elsewhere to balance the rest.”17 Protocols have been developed to help enterprises ensure their carbon neutral progress claims are credible, including ISO 14064 concerning GHG emissions quantification and the Greenhouse Gas Protocol. Examples include those of the CarbonNeutral process of the CarbonNeutral Company,18 the PAS 2060 Carbon Neutrality Specification,19 and national standards such as the Australian National Carbon Offset Standard.20 Similar to climate neutrality are goals to be energy neutral—i.e. produce as much energy at facilities as they require, typically including carbon-free sources. Though carbon-reduction through increased energy efficiency provides significant economic benefits, achieving carbon neutrality requires replacing or offsetting carbon-emitting energy sources, which can create additional expense. A common strategy is using the savings from energy productivity improvements to purchase sustainable energy and carbon offsets, thereby achieving progress without increasing energy expenditures. Such efforts, however, may or may not yield sufficient sustainability benefits. A 2013 study of 100 companies’ commitments found that: “only about half of those companies’ goals were sufficient to address [their] fair share of carbon emissions reductions needed to limit climate change to what scientific consensus deems to be tolerable.”21 In light of this reality, a key benefit of pursuing true carbon neutrality is reducing future risk or liability related to carbon taxes or other climate-related economic impacts. Reduced dependence on carbon-emitting energy also lowers risks related to potential disruptions in fossil fuel supplies. Carbon neutral claims, which have been applied to specific products ranging from flowers to air travel, can increase sales to environmentally conscious consumers. Toward this end, “carbon positive” products—those produced with a net reduction in associated CO2 emissions—are also beginning to appear. For example, Interface Inc., long a corporate sustainability leader, has raised the bar with its 2016 “Climate Take Back” mission that aims for reversing climate change.22 Similar to climate neutrality are goals to be energy neutral, i.e. produce as much energy at facilities as they require—typically including carbon-free sources. For example, IKEA Group’s Sustainability Strategy for 2020 includes a goal to “produce as much renewable energy as we consume in our operations.”23
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Water Neutrality The “State of Green Business 2014” noted that “Some companies are looking to be ‘water-neutral’ or even ‘water positive.’” The report gave the specific example of Coca-Cola’s goal to “to safely return to communities and nature an amount of water equal to what [they] use in [their] finished beverages and their production.”24 Water responsibility also includes corporate commitments to support clean water distribution and improve hygiene.25 Water strategies and climate strategies are closely related, particularly with respect to climate resiliency (i.e., the ability to adjust to changed climate conditions such as reduced water availability). As with energy, offset credits are now available for the pursuit of water neutrality goals. For example, the Bonneville Environmental Foundation (BEF) offers “Water Restoration Credits” (WRCs) certified by the US National Fish and Wildlife Foundation. “Each WRC produced by BEF’s projects represents one thousand gallons of water restored on a company’s behalf and directly contributes to the recreational and ecological vitality of freshwater ecosystems.”26 Sustainability benefits of water neutrality closely parallel those of climate neutrality. In addition to preserving ecosystems and future availability of clean water, increased water efficiency offers savings in water supply and treatment costs. Water neutrality also mitigates risk of disruption to water supply or liability from environmental impact or regulatory costs. Finally, as public concern over clean water issues grows, the competitive advantage of companies with responsible water practices also grows.
SOCIAL PRACTICES AND BENEFITS Work Environment Enterprises create high-quality working environments to attract world-class talent, which is increasingly the key to global competitive success. Such working environments are characterized by livable wages, healthy workplaces, work-life balance, innovation-orientation, education and training support, internal advancement potential, and participating in products and services that solve customer needs in an environmentally-sound manner. Making more sustainable products and services can be a critical factor in offering employees a desirable work environment. Surveys since the 1990s have consistently shown that employees are more attracted to enterprises that are making a positive difference in the world, including through perceptions that the enterprise is a sustainability leader. For example, a Net Impact survey in 2014 found that MBA students would take a 15% pay cut if they could: 1. “work for an organization whose values like [their] own” (88%) 2. “have a job that seeks to make a social or environmental difference in the world” (83%) 3. “have a job in a company committed to corporate and environmental responsibility” (71%).27 Personnel specialists Bain & Co. found, in a 2013 survey of employees in six leading industrial countries, that employees’ four most important issues included employee safety, preventing child labor, corporate behavior, and reducing pollution in the developing world.28 In additional to attracting and retaining high-quality employees, enterprises that care about issues of environmental health and safety (EHS) enjoy lower personnel costs (due to reduced need for recruiting
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and training), higher productivity rates, and the reputational benefits of employees who speak well of their employer.
Charitable Contributions Long a mainstay of corporate social responsibility (CSR), contributions from corporations and related foundations towards community health continue to be vital to charitable work locally and globally. A 2008 literature review of US corporate giving found that: • Corporate philanthropy can be “a cost-effective means for companies to improve their broader competitive context” • Unless philanthropic activity is aligned with the company’s core competencies, it cannot create sustainable social impact • Employee volunteering programs, including employee development, have several benefits, including improved public perception, improved operations (from cross-functionality and client-relationships), positive impacts on recruitment and retention • Corporate philanthropy boosts “reputational or moral capital, which serves as a form of insurance”29 Studies also show that charitable giving and social responsibility are an important factor in employee recruitment of Millennials, who have “increased desire to be part of greater social change.”30 In these studies, employees were even more inspired when they were able to help direct philanthropic contributions. With the integration of environmental and social responsibility under the sustainability umbrella, the leading edge for charitable giving prioritizes efforts that reduce environmental impacts while helping the poor. Such efforts often become core to an enterprise’s identify, amplifying the human resources and reputational benefits while bringing about the direct sustainability benefits the philanthropy is funding.
Community Involvement Enterprises often have expertise—both managerial and technical—that can help communities better design and implement various improvement efforts. In such cases, careful application of conflict-of-interest ethics is needed to ensure that enterprises are not inappropriately self-serving when lending expertise to communities. Productive involvement can take many forms, for example individual contributions to NGO and government committees or public forums, guest presentations to schools or other institutions, and charitable project design and management. Sometimes expertise is provided through training, including workforce training that plays a strategic role for the enterprise by expanding its pool of knowledgeable potential employees.31 Sustainability leaders have frequently shared their expertise with other enterprises through local or national NGO business networks, such as the Vermont Businesses for Social Responsibility32 or Sustainable Business Australia.33 Genuine, well-executed community involvement can be seen as a form of enlightened self-interest. The healthier the community in which an enterprise resides, the more the enterprise benefits. For example, if employees are happy with the place they live, they will be happier and more productive at work, as well as less likely to relocate and leave their jobs. In addition, businesses that earn a reputation
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for supporting their communities are more likely to receive local governmental and private support for business initiatives that require community cooperation.
Supplier and Value Chain Relations “Supply chain risk and sustainability are the two greatest concerns in supply chain management today and are frequently intertwined.” — Lee Buddress, Portland State University, 201434 Sustainability-related value chain management strategies range from verification of supplier records to restructuring the supplier/customer relationship via lean manufacturing. Global companies have found value in helping suppliers reach the quality and sustainability standards expected by their stakeholders. These efforts are often conducted in a collaborative manner involving suppliers, industry-oriented organizations (e.g., trade associations), NGOs, and governments. The supplier collaborations focus on reducing costs and risks, and topics range from resource productivity to labor practices. For example, worker wellbeing in the value chain was the focus of a collaborative effort led by Ceres in 2011.35 Levi Strauss’s “Worker Well-Being Initiative” begun 2011 includes a goal for 80% of its products in 2020 to be made by companies with a qualified “Worker Well-Being” factory and NGO-supported program promoting workers’ health and life management skills (e.g., financial literacy). The initiative’s results include higher productivity via reduced worker absenteeism and attrition; Levi reports a return for suppliers of $3 for each $1 invested in the program.36 Enterprises are also addressing the use of toxics in their value chains. For example, the American Apparel and Footwear Association publicly lists about 250 restricted substances used in clothing production—legally limited in some places but not others. Several initiatives have been launched to eliminate the use of such substances, including the Roadmap to Zero Discharge of Hazardous Chemicals, a joint effort by private enterprises, the Sustainable Apparel Coalition, and the Outdoor Industry Association”.37 According to business consultant Accenture: “Most companies now recognize that a sustainable supply chain is no longer just an optional nice-to-have—it’s a business imperative, critical to the success of the organization as a whole in a perilous world.”38 Sustainability benefits include opportunities for cost reduction through greater efficiency, increased revenue through innovation and opening new markets, increased brand value, increased supply chain stability, and greater collaboration and innovation.
GOVERNANCE PRACTICES AND BENEFITS Transparency The practices of transparency concern key stakeholders for enterprises, including suppliers, employees, and customers. B Corp Certification and other sustainability performance rating systems increasingly value transparency as a key sustainability practice. The transparency achieved by sustainability reporting was addressed in a survey by the Boston College
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Center for Corporate Citizenship and EY in 2013. It found that more than 50% of respondents believed that sustainability reporting improved the enterprise’s reputation, and between 20% and 35% believed it provided the following benefits: • “increased employee loyalty • reduced inaccurate information about the organization’s corporate social performance • helped the organization refine its corporate vision or strategy • increased consumer loyalty • led to waste reduction within the organization • improved relationships with regulatory bodies • [supported] monitoring long-term risk and improving long-term risk management • led to other forms of cost savings within the organization • helped the organization take measures to increase long-term profitability.”39 Understanding the specific concerns of stakeholder groups also helps in understanding the transparency benefits specific to each: • Supply chain – The BSR/Earthscan 2015 State of Sustainable Business survey of over 400 business executives from about 200 companies, that “[e]nsuring good working conditions, along with transparency, [were] the[ir] most important supply chain issues.”40 • Enterprise leaders committed to sustainability must know the practices of their suppliers to truly understand their own sustainability-related impacts. Plus, this data allows businesses to make credible claims, and enjoy the associated benefits, to consumers regarding the environmental footprint or social impact of their products. • Employees – A 2011 survey of enterprises conducting sustainability reporting found that employees were a “vital audience” of the reports, with 18% of respondents believing employees were the most important audience.41 Employee ownership systems naturally drive greater transparency among employees, who must be empowered with information to assist with strategic enterprise decision-making. Transparency allows employees to commit more confidently to their employer’s mission and to correct and respond to issues that may arise more quickly and thoroughly. • Customers and Public Stakeholders – With historically low confidence in institutions — particularly big business — transparency becomes a more critical component of corporate responsibility. An online survey of consumers found that “transparency in an organization’s practices count most in building trust.”42 An international 2012 survey of consumers found 90% wanting companies to be as transparent as possible.43 Therefore, transparency is fundamental to not only gaining customers’ trust, but to earning their loyalty.
SUMMARY OF SUSTAINABILITY BENEFITS Sustainability information sources have compiled thousands of examples of enterprises achieving sustainability advantages (of which only a few are listed here – see Additional Resources section for key sources). The sustainability professional’s role is to know which examples to apply when illustrating the case for a new initiative or to refine existing initiatives.
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Reduced Expenses The key areas that enterprises have found sustainability strategies to reduce expenses concern reducing energy, water and materials waste (especially hazardous materials). Savings also result when purchasing buildings or machines on a lowest life cycle cost basis rather than first-cost basis. According to business sustainability thought leader Bob Willard: “Even if a company does not really care about the environment per se, there are substantial savings to be derived by using less energy, water, and materials in the manufacturing process. These are the ‘low-hanging fruit’ of eco-efficiency associated with sustainability programs.”44 Consultant Ernst & Young estimates that cutting costs by 1% is roughly equivalent to increasing sales by 10% with respect to bottom line effects.45
Increased Employee Productivity Employees become more productive with experience at their work, continual improvement of their skills through education and training, stability in their personal lives, and inspiration from their work making a positive difference in the world. A Gallup Consulting poll found that enterprises in the same industry with a highly engaged workforce achieved 18% greater productivity, 12% higher profitability, and 2.6 times the earnings per share growth rate. A MonsterTRAK.com poll found that 92% of young professionals would be more inclined to work for a company that is environmentally-friendly.46
Reduced Hiring and Attrition Expenses Sustainable companies are more competitive at attracting and retaining top talent. According to Bob Willard: “Hiring top talent is one challenge; keeping it is another. Of employees in G7 countries, 83% say their company’s positive Corporate Responsibility reputation increases their loyalty…. Estimates of the total cost of employee turnover range from 30% of the yearly salary of the vacated position for hourly employees to as much as 150%.”47
Reduced Risks Sustainability strategies reduce a range of strategic, operational, compliance, and financial risks. Such risks include price spikes in critical inputs such as energy, water and materials. Enterprises may face brand/reputational risks from increasingly aggressive corporate behavior monitoring, risks of regulatory changes, and risks of disinvestment by socially-conscious investors. In addition, they may need to increase the quantity of stranded assets on their balance sheets.48 Two sources of primary global risks to enterprises validate that sustainability strategies reduce potential negative impacts from them: • The World Economic Forum’s Global Risks Landscape for 2015 lists water crises, failure of climate change adaptation, and extreme weather events among the eight most likely risks with the highest impacts.49 • The UN Global Compact’s Global Opportunity Report 2015 identifies five critical risks for
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enterprises and governments as extreme weather, lack of freshwater, unsustainable urbanization, non-communicable diseases, and lock-in to fossil fuels.50
Increased Profitability and Capital Attraction When organizations demonstrate their commitment to sustainability, and begin to reap the benefits of reduced expenses, increased productivity, and reduced risks, they also become more profitable. This strengthening of their financial positions makes them more attractive to investors and donors alike. According to Matteo Tonello, of the Conference Board, sustainability can ultimately increase revenues, widen operating margins, and use assets more efficiently. This reduces capital expenditures, lowers applicable tax rates, and reduces the cost of capital. “Companies across all sectors will increasingly see that improved environmental risk management enables them to obtain equity capital at a lower cost.”51 The funds of socially responsible investors (SRI) continues to grow. According to EIRIS (a collaborator on the FTSE4Good index), “at end of July 2015 there was over £15 billion invested in the UK’s green and ethical retail funds. This estimate is based on around 83 UK domiciled green or ethical retail funds and it seeks to not include UK money invested in ethical funds domiciled outside of the UK.”52
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ADDITIONAL RESOURCES • Joel Makower, “Inside Interface’s Bold New Mission to Achieve ‘Climate Take Back’, GreenBiz.com, 6 June 2016: https://www.greenbiz.com/article/inside-interfaces-bold-new-missionachieve-climate-take-back • Arnold Tukker, TNO Institute of Strategy, “Eight Types of Product Service System: Eight Ways to Sustainability? Experiences from SusProNet”: http://sustainelectronics.illinois.edu/ NSFworkshop/Reading/Eight%20Types%20of%20Product-Service%20System%20Eight%20 Ways%20to%20Sustainability%20Experiences%20from%20Suspronet.pdf • Resources to explore regarding sustainability governance strategies and examples include the websites of ICLEI, OECD, UNDP and UNESCAP, IISD, Pacific Institute and the Pembina Institute. • See also the website for the Great Game of Business and its recommendation for open-book management: www.greatgame.com • Jack Stack and Bo Burlingham, A Stake in the Outcome: Building a Culture of Ownership for the Long-term Success of your Business, Doubleday, 2002.
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Chapter Five Endnotes 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28.
Thomas Singer, “Driving Revenue Growth Through Sustainable Products and Services,” The Conference Board, 20 June 2015: https://www.conference-board.org/publications/publicationdetail.cfm?publicationid=2973 Bob Willard, Sustainability Advantage, “UltBook: Answering the Big 3 Whys,” http://sustainabilityadvantage.com/2016/09/02/ultbook-answering-the-big-3-whys/ Bob Willard, The New Sustainability Advantage – Seven Business Case Benefits of a Triple Bottom Line, New Society Publishers, 2012. Kevin Wilhelm, Making Sustainability Stick: the Blueprint for Successful Implementation, Pearson Education Inc., 2014 Scientific American, “When Used Cars Are More EcoFriendly Than New Cars”: https://www.scientificamerican.com/article/when-used-cars-are-more-ecofriendly/ Autumn Spanne, “Want people to buy a product that lasts? Sell them an emotional connection,” The Guardian, 17 Jan. 2015: https://www.theguardian.com/vital-signs/2015/jan/17/the-struggle-to-sell-to-products-that-last Christian Lupo, “Standard Synergy – Combining ISO9001 and ISO14001 compliance efforts can reduce cost and improve quality,” NSF: https://www.nsf.org/newsroom_pdf/Standard_Synergy_White_Paper.pdf First Solar, “Sustainability Metrics”: http://www.firstsolar.com/en/About-Us/Corporate-Responsibility/Sustainability-Metrics UNEP Division of Technology, Industry and Economics, “The Role of Product Service Systems in a Sustainable Society”: http://www.unep.org/resourceefficiency/Portals/24147/scp/design/pdf/pss-brochure-final.pdf T.S. Baines, et al., “State-of-the-art in Product-service Systems,” Journal of Engineering Manufacture, 2007: https://core.ac.uk/download/files/14/336354.pdf Circular Economy Toolkit, “Introduction: Products as a Service”: http://circulareconomytoolkit.org/products-as-a-service.html Joel Makower, “State of Green Business 2016: The Sharing Economy Goes B-To-B”: www.greenbiz.com/ article/state-green-business-2016 Zero Waste International Alliance (ZWIA): http://zwia.org/standards/zw-definition/ Ibid. Op. cit. ZWIA Op. cit. ZWIA Global Carbon Project, “Carbon Neutral”: http://www.globalcarbonproject.org/carbonneutral/index.htm Carbon Neutral: http://www.carbonneutral.com/ BSI Group, “PAS 2060 Carbon Neutrality”: http://www.bsigroup.com/en-GB/PAS-2060-Carbon-Neutrality/ Australian Government, Department of the Environment and Energy, “National Carbon Offset Standard”: https://www.environment.gov.au/climate-change/carbon-neutral/ncos Joel Makower and the editors of GreenBiz.com, “State of Green Business 2014,” GreenBiz Media, p. 8, at http://info.greenbiz.com/rs/greenbizgroup/images/state-green-business-2014.pdf Interface Inc., “Climate Take Back”: http://www.interface.com/US/en-US/campaign/negative-to-positive/ Climate-Take-Back IKEA Group, “People & Planet Positive – IKEA Group Sustainability Strategy for 2020”: http://www.ikea. com/ms/en_US/pdf/reports-downloads/sustainability-strategy-people-and-planet-positive.pdf Op. cit. Joel Makower, et. al., 2014 p. 15 Op. cit. Joel Makower, et. al., 2014 p. 2 Bonneville Environmental Foundation, “What are Water Restoration Certificates?”: http://www.b-e-f.org/ learn/what-are-water-restoration-certificates/ Net Impact, “Students weight in on Impact issues: 2014 Business as UnUsual,” 2014: https://www.netimpact.org/business-as-unusual/infographic-students-weigh-in-on-impact-issues Jenny Davis-Peccoud, “Sustainability Matters in the Battle for Talent,” Harvard Business Review, 20 May 2013: https://hbr.org/2013/05/sustainability-matters-in-the
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29. Brandon Vaidyanathan, “Science of Generosity – Corporate Giving: A Literature Review,” University of Notre Dame Center for the Study of Religion and Society, 2008: https://generosityresearch.nd.edu/assets/17636/corporate_giving_final.pdf 30. Michelle Bittner, “Study: Corporate Giving Improves Employee Performance,” NonProfit Quarterly, 9 Jan. 2015: https://nonprofitquarterly.org/2015/01/09/study-corporate-giving-connected-to-employee-performance/ 31. Michael E. Porter and Mark R. Kramer, “The Competitive Advantage of Corporate Philanthropy,” Harvard Business Review, 2002: https://hbr.org/2002/12/the-competitive-advantage-of-corporate-philanthropy 32. Vermont Businesses for Social Responsibility: https://vbsr.org/ 33. Sustainable Business Australia: http://www.sba.asn.au/sba/ 34. Lee Buddress, “Managing Supply Chain Sustainability and Risk,” The Conference Board, 2014: https:// www.conference-board.org/retrievefile.cfm?filename=TCB_DN-V6N13-141.pdf&type=subsite 35. Ceres and Levi Strauss & Co., “Improving Workers’ Well-being: A New Approach to Supply Chain Engagement,” 2012: http://www.ceres.org/resources/reports/improving-workers-well-being-a-new-approach-to-supply-chain-engagement 36. Levi Strauss, “Sustainability: People; Apparel Workers”: http://www.levistrauss.com/sustainability/people/ 37. Elizabeth Grossman, “How Eileen Fisher, other brands are rinsing toxics from clothes,” GreenBiz, 26 June 2015: https://www.greenbiz.com/article/how-eileen-fisher-other-brands-are-rinsing-toxics-clothes 38. Accenture, “Why a sustainable supply chain is good business”: https://www.accenture.com/us-en/insightoutlook-why-sustainable-supply-chain-is-good-business 39. Jack Stack and Bo Burlingham, A Stake in the Outcome – Building a Culture of Ownership for the Long-term Success of your Business, Doubleday, 2002. 40. Business for Social Responsibility (BSR) and GlobeScan, “The State of Sustainable Business 2015,” September 2015: http://www.bsr.org/reports/BSR_GlobeScan_State_of_Sustainable_Business_2015.pdf 41. Op. cit. Jack Stack and Bo Burlingham, 2002 42. Charlie Arnot, “Transparency is no Longer Optional: How Food Companies Can Restore Trust,” Forbes, 30 Nov. 2015: http://www.forbes.com/sites/gmoanswers/2015/11/30/transparency-no-longer-optional/#38eaf9947705 43. Greg Harman, “The Naked Brand documentary: Trust is the key to new marketing,” The Guardian, 8 Oct. 2013: https://www.theguardian.com/sustainable-business/naked-brand-questus-transparency-marketing 44. Op. cit. Bob Willard, 2012 45. Ernst & Young, “Business Pulse: Exploring Dual Perspectives on the top 10 risks and opportunities in 2013 and beyond – Global Report,” 2015: http://www.ey.com/Publication/vwLUAssets/Business_Pulse_-_top_10_ risks_and_opportunities/%24FILE/Business%20pulse%202013.pdf 46. Op. cit. Bob Willard, 2012 47. Op. cit. Bob Willard, 2012 48. Joel Makower, “Two Steps Forward: Exxon, stranded assets and the new math”: https://www.greenbiz.com/ blog/2014/03/24/exxon-stranded-assets-and-new-math 49. World Economic Forum, “The Global Risks Landscape 2015: 10th Edition”: http://www3.weforum.org/docs/ WEF_Global_Risks_2015_Report15.pdf 50. UNGC, DNV Glas, and Monday Morning Institute and Sustainia, “Global Opportunity Report 2015,” Global Opportunity Network, 2015: http://globalopportunitynetwork.org/the-2015-global-opportunity-report.pdf 51. Matteo Tonello, “The Sustainability Business Case,” Harvard Law School Forum, 2013: https://corpgov.law. harvard.edu/2013/06/28/the-sustainability-business-case/ 52. EIRIS, “Key Facts & Statistics”: http://www.eiris.org/media/statistics/
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CHAPTER SIX Historical Background and Events Chapter Table of Contents Purpose. . ................................................................................................................................. 93 Overview................................................................................................................................ 93 The Industrial Age................................................................................................................... 93 Innovations of Industry................................................................................................. 93 Labor Rights................................................................................................................ 94 The Birth of Environmentalism.................................................................................................. 94 Civil Society............................................................................................................... 94 Environmental Health.................................................................................................. 95 The Atomic Age.......................................................................................................... 96 A Call to Action. . ........................................................................................................ 96 Toward Sustainable Development............................................................................................... 97 Uniting Nations. . ......................................................................................................... 97 Defining Sustainable Development................................................................................. 97 An Underlying Structure............................................................................................... 97 Effective International Collaboration. . ............................................................................ 98 Continuous Improvement.............................................................................................. 98 At-a-Glance History of Sustainable Development ...................................................................... 100 Additional Resources.............................................................................................................. 102 Chapter Six Endnotes........................................................................................................ 103
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PURPOSE The field of sustainability is now over 30 years old. Current practices and models have been shaped by past events and the successes and failures of hundreds of individuals and organizations. A sustainability professional should be conversant in the history of the field and the commonly used language in order to both help others understand what sustainability means as well as to work with other professionals in forwarding the most effective sustainability practices.
OVERVIEW This chapter paints, with a broad brush, the history of how society’s practices became unsustainable and the movement to change that trajectory. It provides a synopsis of the innovations that mechanized manual tasks in ways never possible before. It outlines how, by the beginning of the 20th century, these changes had revolutionized society and created great, but uneven, promise. By the latter half of the twentieth century, the chorus of skeptics had grown and mounting evidence showed that unfettered growth was unsustainable. Thus, stakeholders began joining together to define the problems and begin committing to intentional action. Along this ongoing journey, society has passed myriad milestones—too many to cover in great detail in this brief summary. However, the timeline at the end of this chapter points to some of the most notable occurrences that have contributed to the current state and offer promise in meeting our challenges.
THE INDUSTRIAL AGE Innovations of Industry From a Western perspective the Age of Discovery—the 15th to 18th centuries— marked a time of globalization, discovery, and expansion of trade. As this period drew to a close, the people of Europe—particularly England—had become interested in scientific inquiry. Their government largely followed the laissez-faire (leave it be) doctrine espoused by Adam Smith in his seminal book The Wealth of Nations, published in 1776. This free-market environment was ideal for the development and dissemination of new technologies.1 The Industrial Age, which began in the 1700s, saw numerous innovations which significantly changed the economic and social systems of the world and consequently the ecological systems of the Earth. James Watt’s adaptation of the steam engine to run machinery in 1763 was a key driving force for these changes with its impact on the powering of industrial processes.2 At the same time, innovations like James Hargreaves’s invention of the “Spinning Jenny” in 1764, and Edmund Cartwright’s power-loom invention in the 1780s changed the lives of workers in industrial societies, including young children, were pulled away from agricultural work to work in factories. On the other side of the Atlantic, Eli Whitney was inventing the Cotton Gin (1796), which provided the fibers for the new textile technologies.3 Innovative smelting processes supported the expansion of the iron industry and paved the way for locomotives—the Cornish inventor, Richard Trevithick, built the first successful train in 1804.4 By 1850 most English laborers lived and worked in industrial towns, making Great Britain the “work-
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shop of the world.” As the Napoleonic wars came to an end, the Industrial Revolution gradually spread through Europe, then the United States. This rapid transformation of life—manual production techniques having changed little in the prior 1,000 years—caused by fossil-fuel-powered mechanization gave rise to the moniker for the new era.5 The rise of the Industrial Age is an example of a complex system, where the invention of machines that could do the work of hand tools and the use of steam and other kinds of power took the place of human or animal power allowed more goods to be made more quickly and more cheaply. At the same time, the machines required fuel to power them, increasing the extraction and burning of fossil fuels. Thus, an unsustainable cycle began. Mass production made products cheaper, increasing demand for both the products and the fuel and raw materials needed to manufacture them. The dependence on coal—and later oil—began to remove fossilized carbon from the Earth’s sequestered reserves and emit it into the atmosphere.
Labor Rights As Britain industrialized and production increased, so did demand for coal to fuel steam engines and blast furnaces. Coal production went from 4.7 million tonnes in 1750 to 250 million tonnes in 1900, requiring miners to dig ever deeper as they followed veins horizontally into the earth. As the mines got deeper, the conditions became increasingly dangerous.6 From the beginning, industrialization showed signs of negatively impacting the wellbeing of workers. With long hours (12- to 14-hour days) of monotonous work, the conditions inside textile mills and factories—largely staffed by women and children—were oppressive.7 The worker guilds of medieval times gave birth to trade unions in the 17th century. These unions brought together the voices of workers who had disputes with their employers, which threatened the status quo. Consequently, in 1799 and 1800—during the Napoleonic wars—the British government passed the Combination Acts, which banned any sort of striking action.8 While Britain and other western countries moved on to the “Second Industrial Revolution” (marked by such inventions as the light bulb and the telephone) most of the rest of the world was being left behind economically—continuing as unindustrialized agricultural economies.9
THE BIRTH OF ENVIRONMENTALISM “All I ask of our brethren is that they will take their feet from off our necks and permit us to stand upright on the ground which God intended us to occupy.” — Sarah Moore Grimke, 2007 10
Civil Society Nongovernmental organizations (NGOs), also referred to as “civil society,” began playing a critical role in environmental and social health beginning in the late 18th century. According to businessman and sustainability thought leader Paul Hawken, in Blessed Unrest, his seminal history of social justice and ecological sustainability NGOs, all can trace their origins to 1787, when a dozen people in London organized to abolish the slave trade.11
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In 1840, the abolitionists came together in London to convene the World Anti-Slavery Convention. Largely attended by men, the female abolitionists Elizabeth Cady Stanton and Lucretia Mott were denied seats on the floor of the convention. Stanton and Mott thus became leaders in the suffragette movement.12
Environmental Health Environmentally-focused NGOs arose in the late 19th century as the capability of the Industrial Revolution to destroy wildlife and other forms of natural capital became evident. In the US, for example, the Sierra Club was formed in 1892 and took on Yosemite National Park boundary issues.13 The National Audubon Society was formed in 1905; sixteen state-level organizations were already working to protect waterbirds from exploitation for their feathers.14 Naturalists—including John Muir, Gifford Pinchot, US Presidents Theodore Roosevelt (a biologist), and Franklin Roosevelt (a practicing forester)—noticed in the late 19th century that industrialized processes were devastating nature. The economic models were not promoting sustainable resource use, private and public lands were being abused for short-term gains, and rivers were becoming visibly polluted. Regional air pollution grew rapidly due to the burning of coal for smelting ore, making steel, and generating energy. Studies estimated that worldwide between 300,000 and 700,000 deaths occurred each year due to air pollution—reaching some 25 to 40 million by the end of the 20th century.15 In Europe, London’s air pollution led to “a series of public health campaigns” that fostered the 20th century environmental movements.16 Throughout the 20th century, humanity developed environmentally destructive consumption and economic development habits, characterized by: • An unusual intensity of change and the centrality of human effort in provoking it • Unintended ecological consequences of social, political, economic and intellectual preferences and patterns • Patterns of thought, behavior, production and consumption adapted to the century’s abundance of cheap energy and fresh water, rapid population growth and rapid economic growth17 Since the beginning of the Industrial Revolution, NGOs have played an important role in sustainable development. According to the International Institute for Sustainable Development (IISD), “Campaigning groups have been key drivers of intergovernmental negotiations, ranging from the regulation of hazardous wastes to a global ban on landmines and the elimination of slavery.”18 By the 21st century, the number of NGOs operating internationally numbered more than 20,000, with activities encompassing a broad array of sustainability related causes.19 Conservation International’s work to protect the environment has included “the creation, expansion and improved management of nearly 50 million acres of marine and terrestrial protected areas, and its data collection[, which] has led to the discovery of more than 1,400 species new to science.”20 Beyond environmentalism, numerous NGOs now advocate for humans rights, economic justice, and sustainable-development issues. Examples include Amnesty International, which advocates for human rights in 150 countries with the help of 7 million supporters,21 and Fairtrade International (FLO), which supports fair trade producers and traders through the development of standards, facilitating business development and strengthening organizational structures.22
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The Atomic Age The machines created during the Industrial Revolution changed the face of warfare as well. Faster production, machine driven vehicles, and advancing weapons technology created horrific carnage during World War I.23 World War II saw further advances in airplanes and communications systems. By the end of that war, with the Manhattan Project, the Industrial Revolution had led to the creation of nuclear weaponry. The dawn of the “Atomic Age” in 1945 alerted humanity that science may have “signed the mammalian world’s death warrant” and that “survival is not assured.”24 This concern was not only about the risk of nuclear annihilation but also about humanity’s ability, through technological advances, to exterminate itself—an awareness that extends beyond the devastation of nuclear warfare to the destructive power of a host of human activities. According to historian Clive Ponting: “Since the Second World War there has been a significant change in industrial processes and therefore in the type of pollution produced…pollution levels have risen far faster than the increase in population or even the increase in material consumption in the industrialized world.”25
A Call to Action Nearly 200 years after the invention of the Spinning Jenny, the environment had reached an alarming state. Rachel Carson’s landmark book Silent Spring, published in 1962, describing the decline of bird populations due to man-made chemicals sounded an alarm that awoke the public to the imminent environmental crisis. The pioneering work of ecological economists such as E.F. Schumacher, Herman Daly, and Kenneth Boulding pointed out the unsustainability of the “cowboy” economic model of endless frontiers on a finite planet.26 In this model (as discussed in Chapter 1), natural capital—mistaken for income—is rapidly consumed.27 Proposed solutions included the concept of a “steady-state” economy emphasizing development over growth, and deployment of “appropriate technology” to improve lives in developing countries and rural areas in environmentally and socially supportive ways. In the 1960s and 1970s, developed countries began implementing regulatory schemes to protect the environment. These included efforts to clear up the air and water and protect wilderness and ecosystems. NGOs supporting such efforts also began to emerge, supporting both general regulatory efforts as well as taking on specific projects or initiatives (such as citizen ballot initiatives to end further development of nuclear power). By the late 1970s, however, it became clear that environmental arguments were insufficient without economic rationale, and the multiple benefits of more environmentally-sensitive economic and business development were emphasized. For example, Friends of the Earth US published the book Progress As If Survival Mattered: A Handbook for a Conserver Society in 1977, which envisioned a “sustainable economy.” NGOs and ecological economists also began attacking the blind economic progress measures Gross National Product (GNP) and Gross Domestic Product (GDP) for giving false impressions about the net benefits of economic growth by ignoring all environmental and human health costs.
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TOWARD SUSTAINABLE DEVELOPMENT “What is needed now is a new era of economic growth – growth that is forceful and at the same time socially and environmentally sustainable.” — Gro Harlem Brundtland, “Our Common Future,” 1987 28
Uniting Nations In the throes of World War II, society woke up to the realization that finding a balance of powers was critical to maintaining peace. On New Year’s day 1942, US President Franklin Roosevelt, UK Prime Minister Winston Churchill, Soviet diplomat Maxim Litvinov, and China’s T.V. Soong, signed the “Declaration by United Nations.” The next day, 22 additional nations, allied against the Axis Powers, joined to sign the document, which was underpinned by the principles of the previous year’s Atlantic Charter—an agreement between the US, Great Britain, and Ireland.29 The UN Charter of 1945 focused on four primary purposes: peace, human rights, social progress, and respect for international treaties and laws. Established also at this time were the main organs of the UN: the General Assembly, the Security Council, the Economic and Social Council, the Trusteeship Council, the International Court of Justice, and the UN Secretariat.30
Defining Sustainable Development The UN produced the Conference on The Human Environment in 1972, which set the stage for the concept of sustainable development by concluding that: “we must shape our actions throughout the world with a more prudent care for the environmental consequences. To defend and improve the environment for present and future generations has become an imperative goal … to be pursued in harmony with the fundamental goals of peace and of worldwide social and economic development.”31 As initial UN environmental protection work proceeded, the UN Secretary-General determined that an organization independent from the UN’s central body should take the lead. Thus, in 1983, Javier Perez de Cuellar asked Gro Harlem Brundtland, a former Norwegian prime minister, to chair a World Commission on Environment and Development (WCED).32 She convened a group of politicians, civil servants, and environmental and development experts to formulate a “global agenda for change.”33 According to Nitin Desai, a senior adviser to and drafter of the Brundtland Commission report, “the Brundtland Report changed sustainable development from a physical notion based on the concept of sustainable yield in forestry and fisheries to a much broader concept that linked economic and ecological policies in an integrated framework”.34
An Underlying Structure Twenty years after the Brundtland Commission’s report, 172 nations represented by dozens of heads of state met in Rio de Janeiro to continue their dialogue on sustainable development and create momentum for progress. The UN Conference on Environment and Development (UNCED), known as the “Earth Summit,” produced five major outcomes: 1. Rio Declaration on Environment and Development
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2. Agenda 21 3. United Nations Framework Convention on Climate Change (UNFCCC) 4. Statement of Forest Principles 5. United Nations Convention on Biological Diversity35 The Earth Summit spurred formation of the World Business Council for Sustainable Development (WBCSD) and numerous major corporations to assume leadership positions towards a more sustainable business model. The UNFCCC was tasked with the long-term objective of stabilizing greenhouse gas (GHG) concentrations in the atmosphere “at a level that would prevent dangerous anthropogenic interference with the climate system.”36 Since voluntary emission reductions were not forthcoming, in 1997 at the third Conference of the Parties (COP3), countries signed the 1997 Kyoto Protocol, in accordance with Article 24 of the Convention.37 The Protocol, “sets binding targets to reduce emissions 5.2 percent below 1990 levels by 2012.”38
Effective International Collaboration There is still a long way to go to solve the myriad sustainable development issues, however addressing ozone depletion provides one positive example of how nations can come together to solve an environmental crisis. In the 1970s, evidence began to mount regarding the impact of some man-made chemicals, including Chlorofluorocarbons (CFCs), on the ozone layer in the Earth’s stratosphere. As concern from the scientific community mounted, UNEP began facilitating negotiations between member states, culminating in the 1981 Vienna Convention for the Protection of the Ozone. Two years later, at a conference of the parties in Montreal, Canada, the Montreal Protocol was drafted. The Protocol sought to promote cooperation in research and information exchange, and adopt mechanisms to discourage activities that adversely affect atmospheric ozone. This included phasing out the manufacturing and use of ozone depleting substances. According to the Ozone Secretariat, “the latest scientific assessment of ozone depletion, the ozone layer over the mid-latitudes (30–60 degrees north and south) should recover by 2049, and over the Antarctic by 2065. The ozone layer outside the polar regions is already showing signs of recovery – a significant achievement.”39
Continuous Improvement Building on earlier Conventions and Protocols, the work toward sustainable development has continued. In 2002, ten years after the Earth Summit in Rio, another summit was held in Johannesburg, South Africa. Known as the World Summit on Sustainable Development (WSSD), a key result was the Johannesburg Declaration on Sustainable Development.40 At the UNFCCC’s twenty first Conference of the Parties (COP21) in Paris in 2015, nations agreed to adjust the global approach to limiting climate change. The central aim was to keep increases well below 2 degrees C above preindustrial levels and to further pursue strategies that could limit increases to within 1.5 degrees C. All parties (lesser-developed and industrialized countries alike) agreed to “put forward their best efforts through Nationally Determined Contributions (five-year plans) in support of global peaking of GHGs as soon as possible. Plus each party will implement continual reporting and strengthening of efforts.
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The obligation of developed countries to assist developing countries was affirmed, and incentives such as carbon taxes are favored as strategies.41 The agreement entered into force on November 4th of 2016 when countries representing 55% of global emissions have submitted their instruments of ratification.42 The UN followed Agenda 21 in 2000 with the Millennium Development Goals (MDGs), which focused on sustainable development. These were stretch goals for achievement by 2015, primarily focused on poverty reduction but they reflect the breadth of sustainable development: • Eradicate extreme poverty and hunger • Improve maternal health • Achieve universal primary education • Combat HIV/AIDS, malaria and other diseases • Promote gender equality and empower women • Reduce child mortality • Ensure environmental sustainability • Develop a global partnership for development43 The MDGs were succeeded in 2015 by the 2030 Agenda of 17 Sustainable Development Goals (SDGs). A 2010 UN Background Paper on sustainable development history concluded that: “It is generally accepted that sustainable development calls for a convergence between the three pillars of economic development, social equity, and environmental protection. “Sustainable Development is a visionary development paradigm; and over the past 20 years governments, businesses, and civil society have accepted sustainable development as a guiding principle, made progress on sustainable development metrics, and improved business and NGO participation in the sustainable development process. “Yet the concept remains elusive and implementation has proven difficult. Unsustainable trends continue and sustainable development has not found the political entry points to make real progress.”44 Sustainable development progress has been fostered by numerous international institutions such as development banks, industry NGOs, sustainability-related NGOs, as well as non- and for-profit enterprises and consumer choices. The UN’s approach has generally followed the pattern established at the Earth Summit of forging multinational partnerships to address unsustainable patterns, such as climate change. These agreements will continue to spur the national and local government policies that both drive and complement corporate and private sustainability initiatives.
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AT-A-GLANCE HISTORY OF SUSTAINABLE DEVELOPMENT Date
Event
1763 1764 1776 1787 1798 1804 1804 1859 1872 1876 1927 1945 1948 1958 1960 1962 1968 1968 1969 1969
James Watt adapts steam engine to run machinery James Hargreaves invents the "Spinning Jenny" Adam Smith publishes The Wealth of Nations “Society for Effecting the Abolition of the Slave Trade” formed in London Thomas Robert Malthus publishes his essay on population growth First Locomotives built World population 1 billion Drilling in Titusville, PA (US) strikes oil US established the world’s first National Park in Yellowstone, Wyoming Alexander Graham Bell makes the first successful telephone transmission of clear speech World Population 2 billion US drops atom bombs on Hiroshima & Nagasaki Universal Declaration on Human Rights adopted by UN General Assembly Charles David Keeling begins tracking atmospheric CO2 at Mauna Loa Observatory World population 3 billion Rachel Carson writes Silent Spring Garrett Hardin publishes the article “The Tragedy of the Commons” Ecologist Paul Ehrlich writes The Population Bomb Apollo 11 Lands on Moon – “One small step for man, one giant leap for mankind” US government begins requiring Environmental Impact Statements (EISs) and establishes its Environmental Protection Agency (EPA) Limits to Growth published in conjunction with the Club of Rome UN Conference on the Human Environment (Stockholm) Apollo 17 Sends “Blue Marble” picture of Earth as seen from the Moon World population 4 billion Sherwood B. Idso publishes Carbon Dioxide: Friend or Foe? Brundtland (WCED) Commission established Bhopal chemical leak Responsible Care chemical producer code of conduct issued Antarctic ozone hole discovered US passes EPCRA (Community Right to Know Act) requiring facilities to report on toxic chemicals used or emitted by facilities Chernobyl nuclear power station disaster World population 5 billion Exxon Valdez oil spill and Ceres Principles published
1972 1972 1972 1974 1982 1983 1984 1985 1985 1986 1986 1987 1989
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1989 1989 1992 1994 1994 1996 1997 1997 1999 1999 1999 2000 2001 2001 2002 2005 2007 2006 2008 2010 2010 2010 2011 2012 2012 2014 2015 2015 2015 2016
The Dutch National Environmental Policy Plan launched – governments partner with industry groups to achieve national environmental goals Montreal Protocol entered into effect Earth Summit held in Rio De Janeiro UN Framework Convention on Climate Change ratified Ray C. Anderson launches Interface’s leading edge sustainability efforts World Food Summit in Rome results in Declaration on World Food Security John Elkington publishes Cannibals with Forks: The Triple Bottom Line of 21st Century Business Kyoto Protocol ratified Hawken, Lovins, and Lovins write Natural Capitalism UN Millennium Development Goals (MDG) established World population 6 billion Earth Charter launched Terrorist attacks on NYC World Trade Center and Pentagon Earth Summit Rio + 10 (Johannesburg) HIV/AIDS pandemic in sub-Saharan Africa UN initiated Millennium Ecosystem Assessment (MA) ISSP established NASA reports that the ozone layer is recovering Walmart Supplier Sustainability Assessment Scorecard launched Arab Spring sparked by Tunisian street vendor Deepwater Horizon (a.k.a. the Gulf Oil Spill) Japan earthquake and tsunami/Fukushima Daiichi nuclear disaster World population 7 billion Dhaka, Bangladesh garment factory fire Earth Summit Rio +20 Eastern basin of Aral Sea dries up UN Sustainable Development Goals (SDG) launched Pope Francis issues encyclical on climate change Paris Agreement (COP21) ISSP Sustainability Professional credentials launched
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ADDITIONAL RESOURCES • Jeffrey Sachs, The Age of Sustainable Development. 2015. Columbia University Press. • David F. Murphy and Jem Bendell, “In the Company of Partners: Business, Environmental Groups and Sustainable Development Post-Rio,” 1997: http://www.observatoritercersector. org/pdf/centre_recursos/2_9_mur_40160.pdf provides a detailed history of government and business partnerships emerging in the 1980s/1990s. • UN IPCC, “Historical Overview of Climate Change Science”: https://www.ipcc.ch/pdf/ assessment-report/ar4/wg1/ar4-wg1-chapter1.pdf. A literature search found that “climate change science literature grew exponentially, with a doubling time of 11 years (e.g. ~6.5% annual growth rate) from 1951 to 1997. • US EPA, “EPA History: National Environmental Policy Act”: https://www.epa.gov/aboutepa/epa-history-national-environmental-policy-act • Nuclear Energy Institute, “Fact Sheets”, 2015: http://www.nei.org/master-document-folder/ backgrounders/fact-sheets/chernobyl-accident-and-its-consequences • Resource Renewal Institute, “Netherlands Green Plan,” and other green plan summaries: http://www.rri.org/green-plans-netherlands.php • UNFCCC, “Climate Negotiations Timeline”: http://www.un.org/sustainabledevelopment/ climate-negotiations-timeline/ • UN Sustainable Development Knowledge Platform, “Agenda 21” https://sustainabledevelopment.un.org/outcomedocuments/agenda21 • Interface, “Toward A More Sustainable Way of Business”: http://www.interfaceglobal.com/ sustainability.aspx and books by Ray C. Anderson including Mid-Course Correction and Confessions of a Radical Industrialist • Douglas Brinkley’s books The Wilderness Warrior: Theodore Roosevelt and the Crusade for America, Harper Perennial, 2010; and Rightful Heritage: Franklin D. Roosevelt and the Land of America, Harper, 2016. • IISD Sustainable Development Timeline 2012. http://www.iisd.org/pdf/2012/sd_timeline_2012.pdf
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Chapter Six Endnotes 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30.
Lewis Hackett, “Industrial Revolution: Industrialization, The First Phase,” History World International, 1992: http://history-world.org/Industrial%20Intro.htm Jeffrey Sachs, “The Age of Sustainable Development”, Columbia University Press, 2015 Eli Whitney Museum and Workshop, “The Cotton Gin: Eli Whitney and the Need for an Invention”: https://www.eliwhitney.org/7/museum/eli-whitney/cotton-gin Op. cit. Lewis Hackett, 1992 Op. cit. Lewis Hackett, 1992 C. N. Trueman, “Coal Mines in the Industrial Revolution,” The History Learning Site, 31 Mar 2015, 16 Aug 2016: http://www.historylearningsite.co.uk/britain-1700-to-1900/industrial-revolution/ coal-mines-in-the-industrial-revolution/ Op. cit. Lewis Hackett, 1992 National Archives, UK, “The struggle for democracy: Trade unionism, Early trade unionism”: http://www. nationalarchives.gov.uk/pathways/citizenship/struggle_democracy/trade_unionism.htm Op. cit. Lewis Hackett, 1992 National Women’s History Museum, “Rights for Women: The Suffrage Movement and Its Leaders,” 2007: https://www.nwhm.org/online-exhibits/rightsforwomen/abolitionandsuffrage.html Paul Hawken, Blessed Unrest – How the Largest Movement in the World Came Into Being and Why No One Saw It Coming, Penguin Group, 2007, p. 24. Op. cit. National Women’s History Museum, 2007 Sierra Club, “History: Sierra Club Timeline”: http://vault.sierraclub.org/history/timeline.aspx Audubon Society, “History of Audubon and Science-based Bird Conservation”: http://www.audubon.org/ content/history-audubon-and-waterbird-conservation J.R. McNeill, Something New Under the Sun – An Environmental History of the Twentieth-Century World, W.W. Norton, 2000, p. 103. Op. cit. Paul Hawken, 2007, p. 7 Op. cit. J.R. McNeill, 2000 IISD, “The rise and role of NGOs in sustainable development”: https://www.iisd.org/business/ngo/roles.aspx The Global Journal, “NGOs: A Long and Turbulent History,” 2013: http://www.theglobaljournal.net/article/ view/981/ Sustainability Degrees, “ The 14 Most Influential Sustainability NGOs”: http://www.sustainabilitydegrees. com/blog/most-influential-sustainability-ngos/ Amnesty International, “Key Facts About Amnesty International”: http://www.amnesty.ca/about-us/whatwe-do/key-facts-about-amnesty-international International Trade Centre, International Trade Forum, “NGOs in Trade Development: International Players,” 2006: http://www.tradeforum.org/ngos-in-trade-development-international-players/ Nicole Shutt, “The Industrial Revolution and its Effect on World War 1,” 13 May 2015: https://prezi.com/ xxtw7rqn41jz/the-industrial-revolution-and-its-effect-on-world-war-1/ Paul Boyer, By the Bomb’s Early Light – American Thought and Culture at the Dawn of the Atomic Age, University of North Carolina Press, 1994, pp. 5 and 7. Quotes are from journalists in August, 1945. Clive Ponting, A Green History of the World, Penguin Books, 1991, p. 369. Kenneth E. Boulding, “The Economics of the Coming Spaceship Earth,” 1966: http://editors.eol.org/eoearth/wiki/Kenneth_Ewart_Boulding E.F. Schumacher, Small is Beautiful – Economics as if People Mattered, Harper & Row, 1973 Gro Harlem Brundtland, “Report of the World Commission on Environment and Development: Our Common Future,” Foreword, 1987: http://www.un-documents.net/our-common-future.pdf UN, “1942: Declaration of The United Nations”: http://www.un.org/en/sections/history-united-nations-charter/1942-declaration-united-nations/index.html UN, “Main Organs”: http://www.un.org/en/sections/about-un/main-organs/
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31. UNEP, “Declaration of the United Nations Conference on The Human Environment”: http://www.unep. org/documents.multilingual/default.asp?documentid=97&articleid=1503 32. UN, “Biography of Dr Gro Harlem Brundtland”: http://www.un.org/News/dh/hlpanel/brundtland-bio.htm 33. Brundtland Commission, “Report of the World Commission on Environment and Development: Our Common Future,” 1987: http://www.un-documents.net/our-common-future.pdf 34. Sustainable Development in Action, “Framing Sustainable Development: The Brundtland Report – 20 Years On,” 2007: http://www.un.org/esa/sustdev/csd/csd15/media/backgrounder_brundtland.pdf 35. The Earth Summit, UN: http://www.un.org/geninfo/bp/enviro.html 36. Center for Climate and Energy Solutions, “History of Kyoto Protocol”: http://www.c2es.org/international/ negotiations/kyoto-protocol/history 37. UNFCCC, “Status of Ratification of the Kyoto Protocol”: http://unfccc.int/kyoto_protocol/status_of_ratification/items/2613.php 38. Op. cit. Center for Climate and Energy Solutions 39. Achim Steiner, “Handbook for the Vienna Convention for the Protection of the Ozone Layer: Foreword,” Ozone Secretariat: http://ozone.unep.org/en/handbook-vienna-convention-protection-ozone-layer/2203 40. World Summit on Sustainable Development, “Johannesburg Declaration on Sustainable Development,” 2002: http://www.un-documents.net/jburgdec.htm 41. UNFCCC, “Summary of the Paris Agreement”: http://bigpicture.unfccc.int/#content-the-paris-agreemen 42. UNFCCC, “Status of Ratification,” December 2016: http://unfccc.int/paris_agreement/items/9444.php 43. UNDP, “Millennium Development Goals”: http://www.undp.org/content/undp/en/home/sdgoverview/mdg_ goals.html 44. John Drexhage and Deborah Murphy, “Sustainable Development: From Brundtland to Rio 2012,” 2010: http://www.surdurulebilirkalkinma.gov.tr/wp-content/uploads/2016/06/Background_on_Sustainable_Development.pdf
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CHAPTER SEVEN Global Institutions, Policies and Initiatives Chapter Table of Contents Purpose. . ............................................................................................................................... 106 Overview.............................................................................................................................. 106 Global Institutions................................................................................................................. 106 UN Institutions......................................................................................................... 106 UN Environmental Programme (UNEP)................................................................. 107 Intergovernmental Panel on Climate Change (IPCC)............................................... 107 UN Development Programme (UNDP)................................................................... 108 World Health Organization (WHO)....................................................................... 108 International Court of Justice............................................................................... 108 Multilateral Institutions.............................................................................................. 108 Organization for Economic Co-operation and Development (OECD).......................... 108 World Bank........................................................................................................ 109 World Trade Organization (WTO)......................................................................... 109 Nongovernmental Organizations and Think-Tanks.......................................................... 109 Business for Social Responsibility (BSR) . . ............................................................... 109 Global Footprint Network.................................................................................... 110 Greenpeace........................................................................................................ 110 ICLEI – Local Governments for Sustainability. . ....................................................... 110 Institute for Sustainable Development (IISD).. ........................................................ 111 International Society of Sustainability Professionals (ISSP)...................................... 111 International Union for Conservation of Nature (IUCN). . ........................................ 111 Ocean Conservancy............................................................................................. 112 World Business Council for Sustainable Development (WBCSD)............................... 112 World Green Building Council.............................................................................. 112 World Resources Institute (WRI).. ......................................................................... 112 Worldwatch Institute........................................................................................... 112 Global Policies and Initiatives................................................................................................. 113 Earth Summit in Rio 1992........................................................................................... 113 Rio Declaration on Environment and Development. . ................................................ 113 Agenda 21. . ........................................................................................................ 114 UN Framework Convention on Climate Change (UNFCCC). . ................................... 114 Statement of Forest Principles. . ............................................................................. 115 UN Convention on Biological Diversity (CBD)....................................................... 115 Kyoto Protocol. . ......................................................................................................... 115 Development Goals.................................................................................................... 116 Millennium Development Goals (MDGs).. .............................................................. 116 Sustainable Development Goals (SDGs)................................................................. 116 Vienna Convention & Montreal Protocol...................................................................... 118 Additional Resources.............................................................................................................. 119 Chapter Seven Endnotes.................................................................................................... 120
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PURPOSE Sustainability and systems do not recognize national borders. There is a need for global efforts to target issues that span the Earth, like climate change, human rights, and ocean health. International bodies shape global thinking and work to set policy and align governmental institutions and businesses around global goals, standards, processes, and action. International policy impacts local actions and possibilities. Likewise, local and regional leadership influences national and international strategies. Sustainability professionals should be familiar with the accords, policies, and organizations that shape and impact sustainability concerns locally, regionally, and globally. Such knowledge is foundational to understanding and communicating about sustainability concerns and issues. It also helps professionals understand risks, anticipate global trends, align organizational practices, and contribute to global sustainability performance. Note that the potential scope of this chapter is enormous and it would be easy for it to get out of control while still missing essential content. Thus, this is only a sampling of the many excellent organizations working on sustainability issues around the world, some of which are included in other areas of this Study Guide.
OVERVIEW “Sustainable development is a noble and necessary aspiration. It is a visionary development paradigm; and over the past 20 years, governments, businesses, and civil society have committed to sustainable development goals. Despite recognition of and commitment to the principles of sustainable development, action has not moved beyond the margins and certainly has not led to the core changes needed to support a transition to sustainable development.” — International Institute for Sustainable Development, 20101 Though previous chapters have mentioned various components of global institutions and policies when relevant to the topic at hand, this chapter provides a closer look at the important institutions and policies that have helped define the state and direction of addressing sustainability challenges on a global level.
GLOBAL INSTITUTIONS UN Institutions The United Nations (UN) is a global intergovernmental organization convened and funded by national governments. Because its enforcement authority is weak compared to national governments, it is largely aspirational in its mission—calling on people worldwide to do their best to promote peace and prosperity, including through sustainable development. Like other sustainability advocates in the for-profit and not-for-profit realms, the UN educates decision makers worldwide about sustainability-related threats and opportunities. It has educational and research capabilities and “convening power.” The UN General Assembly is comprised of the member nations, each having one vote; decisions on important questions require a two-thirds majority; all other decisions require a simple majority. The UN Security Council, which has “primary responsibility for the maintenance of international peace and security,”2 is comprised of 15 members, of which five are permanent and ten are elected to two-year terms.
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The UN’s sustainable development work is supported by Article 55 of its charter that calls for it to promote: • Conditions of economic and social progress and development • Solutions to international economic, social, health and related problems • International cultural and educational cooperation • Universal respect for human rights3 The UN’s multi-faceted approach to sustainable development involves collaborative efforts of several UN agencies towards global progress on the 17 Sustainable Development Goals (SDGs) adopted as part of the 2030 Agenda for Sustainable Development adopted in 2015. The agencies and their primary roles are:
UN Environmental Programme (UNEP) Established in 1972, the UN Environment Programme (UNEP) has the mission “to provide leadership and encourage partnership in caring for the environment by inspiring, informing and enabling nations and peoples to improve their quality of life without compromising that of future generations.”4 In fulfillment of this mission, UNEP has responsibility for seven sub-programmes: • Climate Change – supporting environmental resiliency in the face of change • Disasters and Conflicts – minimizing the resulting environmental threats to human wellbeing • Ecosystem Management – that supports human wellbeing • Environmental Governance – building capacity to achieve international objectives • Chemicals and Waste – supporting sound management approaches • Resource Efficiency – promoting sustainable consumption and production • Environment Under Review – designed to empower stakeholders
Intergovernmental Panel on Climate Change (IPCC) Established by the UN in 1988, the Intergovernmental Panel on Climate Change (IPCC) assesses “the scientific basis of risk of human-induced climate change and options for adaptation and mitigation.” UNEP and World Meteorological Organization (WMO) are parent organizations.5 Together with the UNEP and the WMO, the IPCC oversees four task forces, three of which meet annually in plenary session: • The physical science basis for climate change • Climate change impacts, adaptation, and vulnerability • Mitigation of climate change • National Greenhouse Gas (GHG) Inventories
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UN Development Programme (UNDP) The UN Development Programme (UNDP) was established in 1966 to help countries eradicate poverty, reduce inequalities, build institutions, and foster resilience “in order to sustain development results.” The UNDP works in concert with other organizations to further progress toward meeting the SDGs and annually publishes a Human Development Report, assessing challenges and progress.6
World Health Organization (WHO) Established as a UN Agency in 1948, the World Health Organization (WHO) now has 150 country offices worldwide. WHO works “side by side with governments and other partners to ensure the highest attainable level of health for all people” by directing and coordinating health issues within the UN’s, in the following areas: • Health systems • Promoting health through the life-course • Non-communicable diseases • Communicable diseases • Corporate services • Preparedness, surveillance, and response
International Court of Justice Established in 1945 upon the founding of the UN, the International Court of Justice (ICJ) is the UN’s principal judicial organ. While the other main bodies are headquartered in New York, the Seat of the ICJ Court is in The Hague (Netherlands). Cases are heard by a panel of 15 judges, who are appointed by the UN General Assembly and the Security Council and serve a nine year term. The Court is tasked with settling legal disputes and giving advisory opinions on legal questions referred to it by authorized UN organs and agencies. One such example that has potential to shape sustainability efforts is a dispute between Australia and Japan over whaling in the Antarctic.7
Multilateral Institutions Organization for Economic Co-operation and Development (OECD) The Organization for Economic Co-operation and Development (OECD) was established in 1961“to promote policies that will improve the economic and social wellbeing of people around the world.”8 OECD collects information on a broad range of topics, analyses the data, and uses it “to help governments foster prosperity and fight poverty through economic growth and financial stability.” The environmental implications of development comprise an important part of their work.
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World Bank The World Bank was established in 1944 to support global development. Today it is comprised of five institutions, called The World Bank Group (WBG): • International Finance Corporation (IFC) • International Development Association • Multilateral Guarantee Agency • International Bank for Reconstruction and Development • International Centre for the Settlement of Investment Disputes It is made up of 189 member countries, which are represented by a 25-member Board of Governors. Generally member countries’ ministers of finance or development, board members are the “ultimate policymakers at the World Bank.”9 The World Bank provides low-cost loans, credits, and grants to developing countries and assists with management of initiatives across a wide-range of regions. The IFC provides low-cost loans to private sector development projects in developing countries. It adopted social and environmental performance standards for its loans in the late 1990s, which became the basis for development of The Equator Principles for global development financial institutions (see Chapter 3).
World Trade Organization (WTO) The World Trade Organization (WTO) was established in 1996 and presently has 164 country members. Its primary purpose is to “help trade flow as freely as possible” through monitoring policies and providing a forum for negotiations and handling disputes.10 In addition, it is concerned with mitigating undesirable side effects of trade. According to the WTO: “Sustainable development and protection and preservation of the environment are fundamental goals of the WTO. They are enshrined in the Marrakesh Agreement, which established the WTO. ...In general terms, the (WTO) rules, with their fundamental principles of non-discrimination, transparency and predictability, help set the framework for members to design and implement measures to address environmental concerns.”11
Nongovernmental Organizations and Think-Tanks Nongovernmental organizations (NGOs) advocating for sustainability progress do research, provide aid, further environmental conservation, and help build resilient communities around the world.12 NGOs working against sustainability priorities also exist, though none are listed here. Awareness of such organizations is also valuable for sustainability professionals, as knowing the arguments being used against sustainability is key to addressing critics’ concerns and providing viable solutions.
Business for Social Responsibility (BSR) US-based Business for Social Responsibility (BSR) was established in 1992 and expanded in the late 1990s to include EU-based corporations and global sustainable business organizations, leading to six Asia and EU offices by 2012. BSR provides sustainable business consulting assi-
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tance to businesses as well as research services, such as the annual “State of Sustainable Business” survey (with GlobeScan).13
Global Footprint Network Dedicated to providing “ecological footprint” accounting tools and education, the Global Footprint Network has 90-plus partners on six continents. Co-directed by co-founders Mathis Wackernagel and Susan Burns (members of the ISSP Hall of Fame), the network comprises leading practitioners of footprint accounting and education. Footprint programs help decision-makers recognize the impact of ecological overshoot on their own policies, investments, and projects and demonstrate that it is both in their interest and within their power to turn the tide. The Network also develops international footprinting standards, provides stewardship of the National Footprint Accounts, and has launched a Sustainable Human Development initiative to help define human quality of life.14
Greenpeace Greenpeace fills an important role in furthering progress toward sustainability, by playing the role of “Iconoclast”15—persistently attacking the status quo in uncomfortable, often disruptive, ways. Accordingly, their mission is to: “Defend the natural world and promote peace by investigating, exposing and confronting environmental abuse, championing environmentally responsible solutions, and advocating for the rights and well-being of all people.”16
ICLEI – Local Governments for Sustainability ICLEI – Local Governments for Sustainability (ICLEI) was founded in 1990 by 200 governments from 43 countries to provide technical assistance for sustainability efforts. Today, this network of cities, towns and regions encompasses 1,500 members that represents over 25% of urban populations worldwide. Involved in the development of the Melbourne Principles, ICLEI’s work focuses on building a green, low-carbon, economy that is resilient, eco-mobile, biodiverse, resource-efficient, and productive.17 Its current work is focused on 10 Urban “Agendas” that address all sustainability aspects of city management: 1. Sustainable City – to ensure an environmentally, socially, and economically healthy and resilient habitat for existing populations. 2. Low-carbon City – to pursue a step-by-step approach towards carbon neutrality, urban resilience and energy security, supporting an active green economy and stable green infrastructure. 3. Resource-efficient and Productive City – to ensure socio-economic development is significantly decoupled from resource exploitation and ecological impacts. 4. Resilient City – to ensure essential functions, structures, and identity thrive in the face of continual change.
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5. BiodiverCity – support the diverse natural world, which is necessary for both survival and quality of life. 6. Smart City – embed smart growth practices into operations to facilitate sustainability and resiliency. 7. EcoMobile City – creating more livable and accessible cities 8. Healthy, Happy, and Inclusive Communities – look beyond gross domestic product (GDP) to gross national happiness (GNH) as the primary indicator for development. 9. Sustainable Local Economy and Procurement – local initiatives to improve human wellbeing and social equity, while protecting the environment. 10. Sustainable City-Region Cooperation – amplify influence beyond jurisdictional boundaries to create change at the local, regional and sub-national level.18
International Institute for Sustainable Development (IISD) Canada-based Institute for Sustainable Development (IISD) was established in 1990 and serves projects in more than 70 countries. Its mission is human development and sustainability via research, projects, and partnerships. Its strategic goals relate to economic law and policy, water, energy, knowledge, resilience, and reporting services.19
International Society of Sustainability Professionals (ISSP) The International Society of Sustainability Professionals (ISSP) was formed in 2007, with the vision of “making sustainability standard practice around the world.” To this end, their mission is to empower professionals advancing “sustainability in organizations and communities throughout the globe.”20
International Union for Conservation of Nature (IUCN) From its founding in 1948, International Union for Conservation of Nature (IUCN) has grown to a large and diverse environmental network involving 1,300 member organizations and 16,000 natural world experts with a mission to inform and empower ecological conservation efforts worldwide. The IUCN World Conservation Congress meets every four years to: “set priorities and agree on the Union’s work programme. IUCN congresses have produced several key international environmental agreements including the Convention on Biological Diversity (CBD), the Convention on International Trade in Endangered Species (CITES), the World Heritage Convention, and the Ramsar Convention on wetlands.”21 The IUCN’s Conservation tools include tracking the risk of species extinction and of ecosystem collapse, as well as protected areas. The IUCN “Red List of Threatened Species” uses criteria to evaluate the extinction risk of thousands of species. The ecosystem Red List is similarly based on scientific assessments, such as reductions in geographical distribution or degradation of key processes or components of ecosystems.22
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Ocean Conservancy The Ocean Conservancy was founded in 1972 and focused on ocean ecological health, including “solutions” concerning trash-free seas, sustainable fisheries, restoring the Gulf, confronting ocean acidification, ocean planning, and protecting the Arctic. Its Trash Free Seas Alliance was launched in 2012 to provide a forum for cross-sector solutions and includes several global corporations.23
World Business Council for Sustainable Development (WBCSD) Since its founding in 1992, the WBCSD has been a collaborative partner with the UN’s sustainable development efforts. An international business membership organization with 200 members and a network of 60 national and regional business councils, its global initiatives have included the SDG Compass (to help companies navigate the SDGs); promotion of inclusive business practices; periodic reports on business sustainability practices; and task forces on major business sustainability issues.24 In addition, WBCSD partnered with the World Resources Institute (WRI) on the Greenhouse Gas (GHG) Protocol Initiative, which has become the universal standard used for developing and maintaining GHG inventories.
World Green Building Council The World Green Building Council, established in 2002, is a partnership of over 100 national green building industry councils that typically establish green building standards and certifications and provide education for the industry and consumers. Its mission is to strengthen national councils, support a global goal of all buildings being “net zero” energy by 2050, and it provides global resources such as business case analysis.25
World Resources Institute (WRI) In addition to their involvement with the GHG Protocol, WRI hosts an Environmental Democracy Index that rates countries on “three mutually reinforcing rights” to public participation in land and natural resource decisions: 1. The right to freely access information on environmental quality and problems 2. The right to participate meaningfully in decision-making 3. The right to seek enforcement of environmental laws or compensation for harm26
Worldwatch Institute The Worldwatch Institute was established in 1974 as an independent research institute to provide in-depth research and perspectives on global development issues. Its publication series have included topical papers and annual “Vital Signs” and “State of the World” reports. Its current mission is focused on: “universal access to renewable energy and nutritious food, expansion of environmentally sound jobs and development, transformation of cultures from consumerism to sustainability, and an early end to population growth through healthy and intentional childbearing.”27
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GLOBAL POLICIES AND INITIATIVES The international community has come together several times, since Brundtland, to engage in dialogue and formulate consensus for action on sustainable development. A number of pivotal global policies and initiatives provide the foundation for regulatory policies around the world. Treaties, conventions, protocols, and conferences provide key tools that shape international law and the sanctions imposed in the event of noncompliance.
RELATED TOPICS • The Economics of Ecosystems and Biodiversity (TEEB) • UN Global Compact (UNGC)
• Treaties – These compacts or contracts are made between or among sovereign nations after completion of formal negotiations. • Framework Conventions – Also international agreements that often have a narrower scope than a treaty and may consist of agreed-upon arrangements that precede, or form the basis for, a formal treaty. • Protocols – Documents that provide a template for subsequent diplomatic transactions, serving as a draft that is subject to further refinement. • Conferences of the Parties (COPs) – Bilateral or multilateral diplomatic meetings that are conducted so the parties may agree on policy statements outside of more time-consuming, international negotiations. International organizations may also create mechanisms for examining and resolving international issues—as in the 1988 case of the UNEP and WMO establishing the IPCC.28
Earth Summit in Rio 1992 In 1992, twenty years after the first UN Conference on Environment and Development (UNCED) (a.k.a. the Brundtland Commission) 172 nations met to further their dialogue around sustainable development. Known interchangeably as the Earth Summit, or Rio, hundreds of thousands of people participated in developing several pivotal documents that continue to guide governments and institutions today. Five outcomes resulted: 1. Rio Declaration on Environment and Development 2. Agenda 21 3. United Nations Framework Convention on Climate Change (UNFCCC) 4. Statement of Forest Principles 5. United Nations Convention on Biological Diversity29
Rio Declaration on Environment and Development The first outcome of Rio was the Rio Declaration on Environment and Development, which set forth 27 principles to guide sustainable development. Building upon the 1972 UN Conference on the Human Environment, in Stockholm, the Rio Declaration had the “goal of establishing a new and equitable global partnership through the creation of new levels of co-operation among States, key sectors of societies and people.” The Declaration was meant to lay the
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groundwork for future “international agreements which respect the interests of all and protect the integrity of the global environmental and developmental system.”30
Agenda 21 The second outcome of the Earth Summit, Agenda 21, was adopted to guide implementation of the Rio Declaration’s 27 Principles. It provided the world’s first comprehensive set of strategies and actions for sustainable development. Taking a whole-system approach, the Agenda addressed four major issues: • Addressing the social and economic dimensions of development • Conservation and management of resources for development • Strengthening the role of major groups • Outlining a means of implementation31 A UN analysis of Agenda 21’s success in 2012 noted that the “Rio deal” made at UNCED used a three-pronged approach: 1. “Developed countries would take the lead in changing production and consumption patterns (their economic model). 2. “Developing countries would maintain their development goals but take on sustainable development methods and paths. 3. “Developed countries committed to support developing countries through finance, technology transfer, and appropriate reforms to the global economic and financial structures or practices.”32 Another outcome of Agenda 21 is the United Nations Convention to Combat Desertification (UNCCD), the only legally binding international agreement that links the environment, development, and sustainable land management. Specifically addressing the vulnerable species found in arid, semi-arid, and drylands, the Convention is designed to work in concert with the other Rio Conventions. In addition, the 195 parties to the UNCCD are working to improve the living conditions of populations that depend on these lands for existence.33
UN Framework Convention on Climate Change (UNFCCC) In addition to the Rio Declaration and Agenda 21, the parties adopted three, interconnected, conventions at the Earth Summit. The first of these—the United Nations Framework Convention on Climate Change (UNFCCC) was created “to bring the world together to curb GHGs and adapt to climate change.” Per agreement of the parties, the UNFCCC entered into effect in 1994, after the fiftieth instrument of ratification.34 The goal of the Convention was the “stabilization of greenhouse gas (GHG) concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system.”35
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Statement of Forest Principles
RELATED TOPICS
The Statement of Forest Principles, another key • Land use, land-use change and agreement of the 1992 Earth Summit, included forestry (LULUCF) fifteen principles relating to the management, conservation, and sustainable development of forests around the world. The principles acknowledged that forests are essential to all life and provide multiple and complementary uses, including traditional uses. Furthermore, forest management at all levels, from national to local, should address forest issues in a holistic manner and monitor and report on the health of the forests to ensure their continued health and sustainable development.36 An important outcome of Agenda 21 and the Forest Principles was the Montreal Process through which the 12 member countries, representing 90 percent of the world’s temperate and boreal forests, developed the Montreal Process Criteria and Indicators of Sustainable Forest Management as a tool for understanding and exchanging information on forest management best practices and a common framework for evaluating forest conditions.37
UN Convention on Biological Diversity (CBD) The UN Convention on Biological Diversity (CBD) was signed by 150 government leaders at the 1992 UNCED. It is dedicated to promoting sustainable development by recognizing that: “Biological diversity is about more than plants, animals and microorganisms and their ecosystems—it is about people and our need for food security, medicines, fresh air and water, shelter and a clean and healthy environment in which to live.”38 The Aichi Biodiversity Targets for 2020 adopted at the Convention’s tenth meeting of the 2010 Conference of the Parties (COP), include: • At least halve, and where feasible, bring close to zero the rate of loss of natural habitats, including forests. • Establish a conservation target of 17% of terrestrial and inland water areas and 10% of marine and coastal areas. • Restore at least 15% of degraded areas through conservation and restoration activities. • Make special efforts to reduce the pressures faced by coral reefs.39 The Biodiversity Indicators Partnership (BIP) is a global initiative of over forty organizations working internationally “to promote and coordinate development and delivery of biodiversity indicators in support of the CBD, Multilateral Environmental Agreements (MEA), Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES), national and regional governments and a range of other sectors.”40
Kyoto Protocol The UNFCCC process to address climate change resulted in adoption of the Kyoto Protocol, five years later, in 1997. The Protocol sets specific GHG reduction targets (averaging 5% below 1990 levels) for
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industrialized nations and went into effect in 2005, with 37 nations and the EU participating in targeted reductions. Now in its second stage of operation through 2020, 37 nations and the EU have committed to achieving reductions of 18% below 1990 levels. The Protocol established reporting and compliance systems and three market-based mechanisms to facilitate cost-effective reductions of GHGs in industrialized countries: • International emissions trading – allows countries who have emissions lower than their targets to sell units of “excess capacity” to countries that are over their targets. • Clean Development Mechanism (CDM) – allows countries that are over their emissions targets to earn credits toward their own emissions reductions by implementing emissions projects in developing countries. • Joint Implementation (JI) – allows an industrialized country to receive credits toward its own emissions targets for investing in an emissions-reduction project in another industrialized country.41 Global effectiveness of the Protocol has been diminished by the nonparticipation of the US (and withdrawal of Canada in 2012), lack of emissions reduction participation by major developing country GHG emitters (e.g., China and India), and lack of meaningful penalties for failure to achieve targets.42
Development Goals Millennium Development Goals (MDGs) In September 2000, the UN Millennium Summit brought together leaders from 189 countries, including 149 heads of state. The assembly unanimously adopted the Millennium Declaration, which included the eight Millennium Development Goals (MDGs).43 Slated for achievement by 2015, the MDGs were “a direct heir of the Rio Declaration’s Principle 5,” which called for “eradicating poverty and raising the standards of living for all.”44 According to the UN, the following eight MDGs formed “a blueprint agreed to by all the world’s countries and all the world’s leading development institutions.”45 The eight goals were: 1. To eradicate extreme poverty and hunger 2. To achieve universal primary education 3. To promote gender equality and empower women 4. To reduce child mortality 5. To improve maternal health 6. To combat HIV/AIDS, malaria, and other diseases 7. To ensure environmental sustainability 8. To create global partnerships for development
Sustainable Development Goals (SDGs) With the arrival of 2015, the UN convened the Sustainable Development Summit. Building on Agenda 21 and the MDGs, the summit adopted The 2030 Agenda for Sustainable Development. It is the comprehensive global policy for sustainable development as of 2016, comple-
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mented by specific sets of topical principles concerning biodiversity.46 The 17 Sustainable Development Goals (SDGs) are paraphrased below; targets are to be achieved by 2030 unless otherwise noted:47 • SDG 1 – End poverty in all its forms everywhere • SDG 2 – End hunger, achieve food security and improved nutrition, and promote sustainable agriculture • SDG 3 – Ensure healthy lives and promote wellbeing for all at all ages • SDG 4 – Ensure inclusive and equitable quality education and promote lifelong learning • SDG 5 – Achieve gender equality and empower all women and girls • SDG 6 – Ensure availability and sustainable management of water and sanitation for all • SDG 7 – Ensure access to affordable, reliable, sustainable and modern energy for all • SDG 8 – Promote sustained, inclusive, and sustainable economic growth; full and productive employment, and decent work for all • SDG 9 – Build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation • SDG 10 – Reduce inequality within and among countries • SDG 11 – Make cities and human settlements inclusive, safe, resilient, and sustainable • SDG 12 – Ensure sustainable consumption and production patterns • SDG 13 – Take urgent action to combat climate change and its impacts • SDG 14 – Conserve and sustainably use the oceans, seas, and marine resources for sustainable development • SDG 15 – Protect, restore, and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss • SDG 16 – Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable, and inclusive institutions at all levels • SDG 17 – Strengthen the means of implementation, and revitalize the Global Partnership for Sustainable Development The adopted SDGs include prescriptions for achieving the goals that typically refer to strategies such as increased investment, policy adoption, and market and regulatory fixes. The UN’s 10-Year Framework of Programmes on Sustainable Development is designed to enhance international cooperation to accelerate the shift towards sustainable consumption and production in all countries. Other objectives include contributing to resource efficiency and poverty eradication, mainstreaming sustainable development policies, support for capacity building, and enabling all stakeholders to share information and knowledge.48
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Vienna Convention & Montreal Protocol The Vienna Convention for the Protection of the Ozone Layer, drafted in 1985, provided the legal framework for reducing the presence of ozone depleting substances (ODS). This framework convention, committed the parties to “protect human health and the environment against the ‘adverse effects’ of human-induced modifications of the ozone layer.”49 Two years later, the parties drafted the Montreal Protocol on Substances That Deplete the Ozone Layer. In 1989, 46 countries agreed “to apply limits to the production and consumption of the main chemicals causing the destruction of the Earth’s protective ozone layer.”50 The Protocol provided a schedule for phasing out the use of 98% of ozone depleting substances, including chlorofluorocarbons (CFCs) and halons.51 The Protocol’s implementation required regulations at the national level. For example, in the US, the Clean Air Act was amended to allow the EPA to issue regulations in compliance with the Protocol—a process that was replicated in all adopting nations. Chlorofluorocarbons (CFCs), the most dangerous, were phased out first, followed by phase out of the transitional substitutes, hydrochlorofluorocarbons (HCFCs).52 By 2006, scientists at the US National Aeronautics and Space Administration (NASA) reported that the depth of the ozone layer had been largely restored.53 Nonetheless, CFCs also show a global warming potential (GWP) of up to 13,900 times that of carbon dioxide,54 making them subject to continued scrutiny under the UNFCCC.
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ADDITIONAL RESOURCES • Worldwatch Institute, “State of the World 2014: Governing for Sustainability, Island Press, 2014, on grass roots efforts to create better governance for sustainability”: http://www. worldwatch.org/bookstore/publication/state-world-2014-governing-sustainability • Noah Smith, “The Dark Side of Globalization: Why Seattle’s 1999 Protesters Were Right,” The Atlantic, 6 Jan. 2014: http://www.theatlantic.com/business/archive/2014/01/the-darkside-of-globalization-why-seattles-1999-protesters-were-right/282831/ • Chad P. Bown and Rachel McCulloch, “Environmental Issues in the World Trade Organization,” Brandeis University, Feb. 2003: http://people.brandeis.edu/~cbown/papers/bown_ mcculloch_kluwer.pdf • UN Sustainable Development, “United Nations Conference on Environment & Development, Rio d Janerio (sic), Brazil, 3 to 14 June 1992: Agenda 21”: http://sustainabledevelopment.un.org/content/documents/Agenda21.pdf • Center for Climate and Energy Solutions, “Kyoto Protocol Glossary”: http://www.c2es.org/ international/negotiations/kyoto-protocol/glossary • UNFCCC, “Kyoto Protocol Reference Manual: On Accounting of Emissions and Assigned Amount,” 2008: http://unfccc.int/resource/docs/publications/08_unfccc_kp_ref_manual.pdf • UNFCCC, “Climate Change: Guide to Kyoto Protocol Project Mechanisms, Volume A: Overview of the Project Mechanisms”: https://wbcarbonfinance.org/docs/a_en_kyoto_projects_ld.pdf • UN Department of Economic and Social Affairs, “The Millennium Development Goals Report 2015,” at: http://www.un.org/millenniumgoals/2015_MDG_Report/pdf/MDG%20 2015%20rev%20(July%201).pdf • Millennium Development Goals and Beyond 2015 http://www.un.org/millenniumgoals/ • David Waskow and Jennifer Morgan, “The Paris Agreement: Turning Point for a Climate Solution,” World Resources Institute, 12 Dec. 2015: http://www.wri.org/blog/2015/12/paris-agreement-turning-point-climate-solution • UN, Habitat III – The New Urban Agenda: https://habitat3.org/ • ISO, “First International Standard for sustainable procurement nears publication: http:// www.iso.org/iso/home/news_index/news_archive/news.htm?refid=Ref2105
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Chapter Seven Endnotes 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31.
John Drexhage and Deborah Murphy, “Sustainable Development: From Brundtland to Rio 2012,” 2010: http://www.surdurulebilirkalkinma.gov.tr/wp-content/uploads/2016/06/Background_on_Sustainable_Development.pdf United Nations, “Charter of the United Nations: Chapter V,” http://www.un.org/en/sections/un-charter/ chapter-v/ UN, “UN Charter (full text)” http://www.un.org/en/sections/un-charter/un-charter-full-text/index.html UNEP, “UNEP Organization Profile” http://www.unep.org/PDF/UNEPOrganizationProfile.pdf IPCC, “Structure: How Does the IPCC Work?” http://www.ipcc.ch/organization/organization_structure. shtml UNDP, “Overview”: http://www.undp.org/content/undp/en/home/ourwork/overview.html and http://50. undp.org/en/#timeline International Criminal Court, “Whaling in the Antarctic (Australia v. Japan: New Zealand intervening)”: http://www.icj-cij.org/docket/index.php?p1=3&p2=3&code=aj&case=148&k=64&p3=0 OECD, “The Organisation for Economic Co-operation and Development (OECD)” http://www.oecd.org/ about/ The World Bank, “Organization” http://www.worldbank.org/en/about/leadership WTO, “Understanding the WTO: Who we are” https://www.wto.org/english/thewto_e/whatis_e/who_we_ are_e.htm WTO, “Trade and Environment” https://www.wto.org/english/tratop_e/envir_e/envir_e.htm Sustainability Degrees, “The 14 Most Influential Sustainability NGOs,” 2014: http://www.sustainabilitydegrees.com/blog/most-influential-sustainability-ngos/ BSR, “BSR/GlobeScan State of Sustainable Business Survey 2015” https://www.bsr.org/en/our-insights/reports Global Footprint Network “Living Planet Report” www.footprintnetwork.org A role in the “AMOEBA” game, described by Alan AtKisson, “The Innovation Diffusion Game: A tool for encouraging participation in positive cultural change - or for doing something different at your next party”: http://www.context.org/iclib/ic28/atkisson/ Greenpeace: www.greenpeace.org ICLEI – Local Governments for Sustainability, “Who We Are” http://www.iclei.org/about/who-is-iclei.html ICLEI, “Activities”: http://www.iclei.org/agendas.html IISD, “Our Mission”: http://www.iisd.org/about/about-iisd International Society of Sustainability Professionals (ISSP) website: https://www.sustainabilityprofessionals. org/history-issp IUCN: https://www.iucn.org/about IUCN, “Conservation tools”: https://www.iucn.org/resources/conservation-tools Ocean Conservancy website, including “Trash Free Seas Alliance” and “Our Solutions”: www.oceanconservancy.org WBCSD, “SDB Compass: Download the SDG Compass Guide”: http://sdgcompass.org/download-guide/ World Green Building Council, “advancing Net Zero”: http://www.worldgbc.org/index.php/activities/net-zero/ WRI, “Environmental Democracy Index”: http://www.environmentaldemocracyindex.org/about/background_and_methodology Worldwatch Institute: www.worldwatch.org Pollution Issues, “Treaties and Conferences”: http://www.pollutionissues.com/Te-Un/Treaties-and-Conferences.html#ixzz4Q6kiiHSe The Earth Summit, UN: http://www.un.org/geninfo/bp/enviro.html UN, “Rio Declaration on Environment and Development” http://www.unep.org/documents.multilingual/ default.asp?documentid=78&articleid=1163 UN Division for Sustainable Development, “Agenda 21,” 1992: https://sustainabledevelopment.un.org/content/documents/Agenda21.pdf
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32. UN Department of Economic and Social Affairs, Stakeholder Forum for a Sustainable Future, “Review of implementation of Agenda 21 and the Rio Principles,” Jan. 2012: https://sustainabledevelopment.un.org/ content/documents/641Synthesis_report_Web.pdf 33. Convention to Combat Desertification (UNCCD), “About the Convention”: https://www.cbd.int/history/ 34. UNFCCC, “Status of Ratification of the Convention”: http://unfccc.int/essential_background/convention/ status_of_ratification/items/2631.php 35. UNFCCC , “First steps to a safer future: Introducing The United Nations Framework Convention on Climate Change”: http://unfccc.int/essential_background/convention/items/6036.php 36. UN, “Report Of The United Nations Conference On Environment And Development: Annex III,” 1992: http://www.un.org/documents/ga/conf151/aconf15126-3annex3.htm 37. The Montreal Process: http://www.montrealprocess.org/ 38. The Convention on Biodiversity, “CBD – Convention on Biological Diversity”: https://www.cbd.int 39. The Convention on Biodiversity, “Quick Guides for the Aichi Biodiversity Targets”: https://www.cbd.int/ nbsap/training/quick-guides/ 40. Biodiversity Indicators Partnership: http://www.bipindicators.net 41. UNFCCC, “Kyoto Protocol “ and “Status of Ratification of the Kyoto Protocol”: http://unfccc.int/kyoto_ protocol/items/2830.php and http://unfccc.int/kyoto_protocol/status_of_ratification/items/2613.php 42. See, for example, Ed King, “Kyoto Protocol: 10 years of the world’s first climate change treaty,” Climate Change News, 16 Feb. 2015: http://www.climatechangenews.com/2015/02/16/kyoto-protocol-10-years-ofthe-worlds-first-climate-change-treaty/ 43. UN, “Conferences and Meetings”: http://www.un.org/en/events/pastevents/millennium_summit.shtml 44. UN Department of Economic and Social Affairs, Stakeholder Forum for a Sustainable Future, “Review of implementation of Agenda 21 and the Rio Principles,” Jan. 2012: https://sustainabledevelopment.un.org/ content/documents/641Synthesis_report_Web.pdf 45. UN, “Millennium Development Goals and Beyond 2015”: http://www.un.org/millenniumgoals/ 46. UN, “Sustainable Development Goals”: http://www.un.org/sustainabledevelopment/ 47. UN General Assembly, “Resolution adopted by General Assembly on 25 Sept. 2015”: http://www.un.org/ga/ search/view_doc.asp?symbol=A/RES/70/1&Lang=E 48. UNEP, “What is the 10YFP?”: http://www.unep.org/10yfp/About/Whatisthe10YFP/tabid/106245/Default. aspx 49. UNFCCC, “Phasing out CFCs: The Vienna Convention and its Montreal Protocol”: http://unfccc.int/resource/ccsites/senegal/fact/fs224.htm 50. UNEP Ozone Secretariat, “Handbook for the Montreal Protocol on Substances that Deplete the Ozone Layer: Introduction”: http://ozone.unep.org/en/handbook-montreal-protocol-substances-deplete-ozone-layer/3 51. Ibid. 52. US EPA, “Phase-out of Ozone–Depleting Substances”: https://www.epa.gov/ods-phaseout 53. “NASA and NOAA Announce Ozone Hole is a Double Record Breaker” NASA, October 19, 2006: http:// www.nasa.gov/vision/earth/lookingatearth/ozone_record.html 54. Greenhouse Gas Protocol, “Global Warming Potential Values”: http://www.ghgprotocol.org/calcula•tion-tools/all-tools
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CHAPTER EIGHT Regulatory Trends and Policies Chapter Table of Contents Purpose. . ............................................................................................................................... 123 Overview.............................................................................................................................. 123 Mechanisms for Driving Behavior Change.. ................................................................................ 123 Financial Incentives and Taxation................................................................................ 123 Policies for Fostering Sustainable Consumption.............................................................. 124 Ensuring Accountability. . ............................................................................................ 125 Mechanisms for Addressing Economic Issues.............................................................................. 125 Multilateral Agreements . . ............................................................................................ 125 Regulations Encouraging Sustainable Business................................................................ 126 Mechanisms for Addressing Environmental Issues....................................................................... 127 Creating Markets....................................................................................................... 127 Using Taxes & Incentives............................................................................................ 127 Controlling Hazardous Substances................................................................................ 128 Making Producers Responsible .. ................................................................................... 129 Driving Efficiency...................................................................................................... 130 Managing Waste . . ....................................................................................................... 131 Avoiding Resource Depletion....................................................................................... 131 Protecting Species...................................................................................................... 132 Restricting Land-Use.................................................................................................. 134 Mechanisms for Addressing Social Issues................................................................................... 134 Protecting Indigenous Rights....................................................................................... 134 Ending Slavery, Forced, and Child Labor....................................................................... 135 Defunding Conflicts................................................................................................... 136 Requiring Transparency. . ............................................................................................. 136 Additional Resources.............................................................................................................. 137 Chapter Eight Endnotes..................................................................................................... 139
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PURPOSE Local, national, and global policies can have an important impact on how organizations operate and citizens behave. Regulations imposed in seemingly distant regions can have significant ripple effects. Sometimes a local regulation will drive industry to adapt its practices everywhere rather than have variations in its operations from locality to locality. Countries viewed as being at the forefront of sustainability often set regulatory examples that other countries or jurisdictions eventually follow. Being familiar with the significant regulatory changes anywhere in the world helps sustainability professionals set directions within their own organizations.
OVERVIEW “Long before the climate crisis was the ‘greatest market failure the world has ever seen,’ it was a massive political and governmental failure. The knowledge that carbon emissions would sooner or later threaten the survival of civilization was known decades ago, but governments have done very little about it relative to the scale, scope and longevity of the problem.” — David W. Orr, 20141 Government regulations and policies address sustainability challenges on a variety of levels, from seeking to influence individual behavior to creating mechanisms and agreements governing national and global practices. For example, taxes or subsidies may be used to discourage or encourage behaviors with destructive or beneficial impacts, respectively. Multinational agreements may seek to prohibit trade of goods produced through environmentally destructive or unjust means. This chapter categorizes these regulatory efforts by scope (e.g., individual or corporate incentives and taxes) and sphere of impact (i.e., economic, environmental, and social). The OECD Database on instruments used for environmental policy provides a compendium of approaches for 57 countries.2
MECHANISMS FOR DRIVING BEHAVIOR CHANGE Financial Incentives and Taxation
RELATED TOPICS
The foundation of sustainability efforts is short- and long-term • Accounting for Externalities human and ecological health. Governments have long regulated human health via regulatory systems for food and drugs, health practitioners, health insurance, and safety of dangerous devices. These regulations have frequently been enforced using “sin taxes” and various penalties. “Sin taxes” are an informal name applied to taxes on activities deemed harmful to human health but that are nevertheless attractive to people—for example, alcohol and cigarettes. The tax aims to reduce demand and is often a revenue-generator for the government’s costs of addressing the negative effects of usage. For example, taxes on sugar ingredients in food are being adopted to help reduce a rapid growth in obesity and related health issues, such as increased rates of Type 2 diabetes. In 2013, Mexico adopted taxes raising consumer prices by 10% on sugar-sweetened beverages and 8% on several highly energy-dense foods. Surveys on consumption after approximately one year estimated a 17% reduction in
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sugar-sweetened beverage consumption in low-income areas.3 Another tax, known as a Pigouvian Tax (named after British the economist Arthur C. Pigou), is designed to address the tragedy of the commons dilemma by helping to internalize external costs. According to Pigou, “…private enterprise left to itself, even when it operates under conditions of simple competition, often leads to a distribution of resources less favourable to the national dividend than some other possible distributions…. When competition rules and social and private net product at the margin diverge, it is theoretically possible to put matters right by the imposition of a tax or the grant of a subsidy; when monopoly rules, it is theoretically possible to render it innocuous by the regulation of price, in conjunction, in some circumstances, with the regulation of output.”4 Pigou concludes that “…to counter the bias of private interest in these ways must prove in practice an extraordinarily difficult task, and one which cannot be carried through completely. Hence the question arises whether, other things being equal, it would not be better for public authorities themselves to operate certain classes of undertaking instead of trying to control their operation by private enterprise.”5 Behavioral economic research is providing a better understanding of how society, through governments, might better “nudge” people towards desirable behaviors, including sustainable consumption.6 Much public policy is based on the assumption that human beings are likely to make a choice if it’s rational, but, according to research by economist John Gowdy, this isn’t necessarily true, and policies should reflect that.7 Gowdy cites the example of organ donation; donor rates are much higher in nations where a citizen must proactively decline to be an organ donor instead of proactively choosing to be a donor. In the same way, governments must enact policies that ensure the sustainable choice is clearly the short- and long-term economically preferable choice.
Policies for Fostering Sustainable Consumption Nation signatories to the UN 2030 Agenda for Sustainable Development are committed to “making fundamental changes in the way that our societies produce and consume goods and services.”8 Along with governments, international organizations, the business sector, and other non-state actors, individuals must contribute to changing unsustainable consumption and production patterns. This is facilitated in a range of ways, including education programs by government institutions and NGOs; government subsidies and tax incentives for emerging, more sustainable technologies; and product labeling and certification efforts. For example, the German government’s national program for sustainable consumption, adopted 24 Fedruary 2016, calls for education, consumer information, and research programs targeting the six consumption choices with the greatest impacts: mobility, food, housing and households, office and work, clothing, and tourism/leisure.9 Governments are also trying to foster sustainable consumption by changing their own purchasing habits. Beginning in the 1990s, governments were adopting principles and guidelines for more environmentally-friendly procurement for government operations, as well as beginning to impose quality requirements on vendors that reflect sustainability values such as livable compensation.
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For example, in 2007, the US government explicitly adopted a sustainability strategy for its operations, including procurement. By 2025, they want to derive 25% of their heat and electricity from renewable sources and cut fleet emissions by 30%. In addition, they aim to reduce energy usage by 2.5% and water usage by 2% each year.10
Ensuring Accountability Requiring companies to be open and honest about the ingredients in foods, cosmetics, fabrics, building materials, and other products, can change the way consumers shop. In some cases, although transparency is required, organizations may illegally choose to hide information and if employees report on these activities, they punish the employees. This has led to regulations to protect these people, referred to as whistleblowers. Without sufficient legal protection, this critical component of regulatory compliance is ineffective. For example, the UK whistleblower regulations stipulate:11 “The wrongdoing you disclose must be in the public interest.… You’re protected by law if you report any of the following: a criminal offence, e.g. fraud; someone’s health and safety is in danger; risk or actual damage to the environment; a miscarriage of justice; the company is breaking the law, e.g. doesn’t have the right insurance; [or] you believe someone is covering up wrongdoing.” Governments aim to continually improve their regulatory approach to enterprise governance, with major changes often occurring as the result of a highly visible failure of regulations or markets. For example, in the US the 2002 Sarbanes-Oxley Act (SOX Act) responded to excessive fraudulent accounting by public corporations. Its key provisions were that top management must certify the accuracy of reported financial statements (and thus become liable for inaccuracies), and the organization must establish internal financial controls and reporting on their adequacy; rules promoting independence of auditors were also adjusted.12 A European version of this act, EuroSOX, was also passed.13 The American Sustainable Business Council (ASBC) is calling for more transparency about actual business ownership: “Anonymous companies, legal entities under current law, are being used to harm individuals and legitimate businesses, by scamming consumers and winning government contracts through fraud for example. This is possible because our states routinely incorporate companies whose true owners remain anonymous. To correct that, every state must identify and disclose the names of the real people who own or control the firms they incorporate, the beneficial owners.”14 Sustainable enterprise governance regulations include support for employee ownership of for-profit companies.
MECHANISMS FOR ADDRESSING ECONOMIC ISSUES Multilateral Agreements Various efforts to drive economic development in an increasingly global world have taken place since World War II, each with varying impacts on the environmental and social landscape of their respective economies. After two world wars, the countries of Europe began uniting after 1945, in an effort to avoid such con-
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flicts from igniting again. Gradually the member states have come to “an increasing acceptance of the need to abandon balance of power politics for a multiple-level shared sovereignty through economic and political integration with other European Union (EU) member states.”15 With 7% of the world’s population, 20% of imports and exports, and a GDP of €13,920,541 million in 2014, the EU has grown to become a major world trading power.16 While they have attempted to lead in the effort to combat climate change, they have had mixed success.17 As the recent “Brexit” vote by the Britain demonstrates, “decades of globalization, deregulation, and policy changes that favored the wealthy have left Britain a more unequal place, with vast regional disparities.”18 North America took a different approach, rather than uniting politically, they enacted a series of regional trade agreements. First Canada and the US joined together with Free Trade Area of the Americas (FTAA). Then the two countries joined with Mexico on the North American Free Trade Agreement (NAFTA). Arising to fill a lack of action by the WTO, these agreements were designed to eliminate most tariffs on products traded between the parties. Twenty years later, this type of agreement has proliferated but the impact on jobs and wages remains a point of contentious debate in all three economies.19
Regulations Encouraging Sustainable Business Government economic development programs have long featured support systems for new businesses or industries. In the 1980s and ’90s, Japan, the EU, and the US introduced specific efforts to support leading-edge environmental technology or “clean technology” businesses. These programs and strategies have evolved to include subsidies and risk-taking via research, business planning, sustainable community development grants, and new technology commercialization support, such as equity investments and low-interest loans. For example: • In 2015, the US government launched the Clean Energy Investment Initiative and Clean Energy Investment Center to streamline technology investments.20 In addition, the Jumpstart Our Business Startups Act (JOBS) of 2012 helped “emerging growth companies” raise capital from public investors (e.g., crowdfunding) by reducing some regulatory requirements.21 • The Canadian “Federal Sustainable Development Strategy 2016-2019 calls for phasing out subsidies for the fossil fuel industry and creating a “Low Carbon Economy Trust” to fund projects that materially reduce carbon emissions. • The European Organisation for Sustainable Development’s Enterprise Development for a Green Economy supports businesses becoming more sustainable.22 • The Korea Eco-Products Institute promotes consumption and production of environmentally-friendly products. Its “Fund for the Rational Use of Energy” provides energy efficiency investment support and provides the state-certified Eco-label.23
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MECHANISMS FOR ADDRESSING ENVIRONMENTAL ISSUES Creating Markets When externalities and other market factors combine to create excessive resource consumption or waste/pollution, governments have two fundamental strategies to address the “market failure”: restrictive regulations or schemes that will alter the price of the activity. Price alterations include direct taxation, tax reductions or subsidies (as a reward for desired behavior), and “cap and trade” schemes (which combine regulations with economic incentives).
RELATED TOPICS • CAFE standards • Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA) • Energy Policy Act of 1992 (EPACT 1992) • Feebate • Feed-in Tariff • International Emissions Trading
Restrictive regulations include outright bans on activities as well as approaches that require incremental movement toward new standards. An example of the latter is “portfolio standards,” which require products to contain a minimum percentage of a more sustainable input, such as recycled paper or renewable energy, within a specified time period. A similar result to a portfolio standard can be achieved by a cap and trade system. This approach sets a limit on the maximum emissions that can be produced within the regulated sector. Permits are then issued or auctioned to enterprises within this sector, allotting them a portion, or “allowance,” of the total emissions allowed under the “cap.”
Using Taxes & Incentives According to the World Resources Institute: “This scarcity creates a market price for the allowances based on supply and demand. Regulated emitters may buy and sell allowances, so companies that can cheaply or easily reduce emissions can sell allowances to other companies for which such reductions are more expensive or difficult. This flexibility lowers overall compliance costs by allowing companies to pursue the most cost-effective emission reduction options.”24 Because emissions under the cap for a particular entity are allowed at no cost, some have criticized cap and trade as a “license to pollute.” In contrast, a pollution tax (see Pigouvian Tax, above) is simply applied to all emissions, creating an economic incentive to continually pursue reductions in pollution, although regulators are often reluctant to introduce new taxes. Other attributes of each system also hold important implications. As economist Paul Krugman explains: “If the government imposes a pollution tax, polluters know what price they will have to pay, but the government does not know how much pollution they will generate. If the government imposes a cap, it knows the amount of pollution, but polluters do not know what the price of emissions will be…. Another important difference has to do with government revenue. A pollution tax… imposes costs on the private sector while generating revenue for the government…. Cap and trade, however, often involves handing out licenses to existing players, so the potential revenue goes to industry instead of the government.”25
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Pollution tax advocates have promoted combining pollution taxes with reductions of other taxes that individuals or businesses pay, often under the rationale of “tax ‘bads,’ such as pollution, rather than ‘goods,’ such as earned income.”26 This approach was used in British Columbia, Canada, regarding its carbon tax of 2008, which offsets approximately a billion dollars of individual and business taxes per year. Following are specific examples of the various approaches that have been widely implemented: • Taxation ¤ The Global Commission on The Economy and Climate reports that “around 40 countries and 20 subnational jurisdictions have now adopted or are planning carbon taxes or trading schemes.”27 ¤ Sweden’s carbon tax took effect in 1995 and produced tax revenues equivalent to 2.52% of GDP in 2012.28 ¤ British Columbia (Canada) adopted a “revenue-neutral” carbon tax in 2008 that has reduced personal and business taxes.29 • Tradable Permits ¤ Cap and Trade systems for carbon emissions have been adopted in the EU, Quebec, and California. ¤ Cap and trade system for sulfur dioxide emissions began in the US in 1990.30 • Subsidies ¤ Australia’s “Caring for our Country” grants subsidized natural resource protection projects.31 ¤ Subsidies for fuel-efficient vehicles and sustainable energy (offered by most industrialized countries). • Incentives ¤ Australia’s “Emissions Reduction Fund” to buy-back carbon credits in reverse auctioning. This program awards Australian Carbon Credit Units (ACCUs) to businesses investing in new technology, upgrading equipment, or changing business practices to improve productivity or energy use that pass the additionality test. Then, the government buys back the ACCUs to satisfy their international reduction obligations.32
Controlling Hazardous Substances The Precautionary Principle is based on Principle 15 from the UN “Earth Summit” in 1992:
RELATED TOPICS • Environmental Product Declarations
“Where there are threats of serious or irreversible damage, lack of full scientific uncertainty shall not be used as a reason for postponing cost-effective measures to prevent environmental degradation.”33 The concept is typically applied to man-made chemicals but is also invoked by sustainability advocates with regard to nuclear power and genetically-modified organisms.34 Its importance for chemicals is emphasized by the fact that it is estimated that, in the US alone, about 2000 new chemicals (about six per day) are introduced each year.35 Consequently, in 2016, the US launched Project TENDR (Targeting Environmental Neuro-Developmental Risks), a new effort to bring the Precautionary Principle to chemical regulations.36
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Nevertheless, application of the Precautionary Principle is often controversial. Critics contend its misapplication has “resulted in expensive restrictions and/or bans on technologies that posed minimal risk.”37 Supporters, however, contend that “precaution is simply the application of common sense to effective environmental regulations, allowing protective decisions to be made with greater confidence in the face of inevitable uncertainties and unknowns.”38 A 2013 European Environment Agency examination of 88 alleged misapplications of the Precautionary Principle found only four actual “false positives” (i.e., where an activity was inappropriately prevented due to potential risks).39 Regulatory approaches focus both on managing and restricting use of substances to minimize adverse impacts on people and the environment. Typically, regulations apply to users of hazardous substances that exceed minimum thresholds of use. The pioneering US Toxic Substances Control Act (TSCA, 1976) provided the EPA with authority to require reporting, record-keeping, and monitoring chemicals, including asbestos, radon, and lead-based paint.40 The 2016 TSCA update includes increased public transparency, new risk-based safety standards, and, for the first time, a mandate that the EPA evaluate existing chemicals (there are currently more than 83,000 in its inventory).41 Examples of specific regulations include the EU’s Restriction of Hazardous Substances in electrical and electronic equipment (RoHS). The measure requires member nations to ensure that the regulated equipment does not contain the following substances above a maximum concentration value (MCV): lead, mercury, cadmium, hexavalent chromium, polybrominated biphenyls (PBBs), and polybrominated diphenyl ethers (PBDEs). Similar approaches have been taken in California (US), South Korea, China, and India.42 The EU’s REACH regulations of 2007 (Registration, Evaluation, Authorisation, and Restriction of Chemicals) aimed to both reduce chemical risks and “enhance the competitiveness of the EU chemicals industry.” It placed the risk-related “burden of proof” on companies, which must “identify and manage the risks linked to the substances they manufacture and market in the EU.”43 If risks can’t be adequately managed, REACH states that authorities can place other restrictions on the substances with the ultimate goal of substituting less dangerous alternatives. The regulation also addresses animal-testing of chemicals. Other approaches include transparency requirements related to use of regulated substances. This can lead to preventing or minimizing these substances’ use, as was the case with the US Toxics Release Inventory regulations (1986), which became a worldwide model.44
Making Producers Responsible The concept of extended producer responsibility (EPR) includes “product stewardship” and “product take-back.” The OECD defines EPR as “an environmental policy approach in which a producer’s responsibility for a product is extended to the post-consumer stage of the product’s life cycle.” According to a 2014 EU guidance study: EPR is to be considered a major instrument in support of the implementation of the European Waste Hierarchy, and therefore for the increase of, by priority: ‘prevention, reuse, and recycling.”45 That waste management hierarchy has long been used in the US and elsewhere, typically called “reduce, reuse, and recycle.” The Canadian government distinguishes between EPR and product stewardship:
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“The main difference between the two approaches is that funding for EPR programs is provided by producers. In contrast, under a product stewardship program, legislated environmental fees and/or public funds are commonly used as a funding base.”46 The EU and Japan led adoption of EPR regulations in the early 2000s. All EU member states have implemented EPR schemes for packaging, batteries, vehicles (called End-of-Life Vehicles), and Waste from Electrical and Electronic Equipment (WEEE). Belgium has EPR schemes for batteries, electronics, packaging, tires, vehicles, graphic paper, oils, medical waste, agricultural film, disposable plastic kitchenware, and photo-chemicals. EU-28 countries have a wide range of collection rates – e.g., only 5% of batteries are collected in Malta but 72% in the Czech Republic.47 In the US, 25 states have adopted legislation mandating statewide “e-waste recycling,” but only California has also adopted a recycling fee collected by retailers to fund electronic waste recycling.48 According to the OECD: “Most OECD countries have now implemented EPR policies in key sectors such as packaging, electronics, vehicles, and batteries. Certain emerging economies in Asia [including China, India and Indonesia], Africa, and South America have also started to develop EPR programmes in recent years.”49
Driving Efficiency Governments adopt performance standards for products that restrict toxic materials and mandate efficiency performance of buildings, energy, and/or water use. The EU has adopted the Ecodesign Directive, a regulatory system to improve sustainability performance of “energy-related products.” It aims to eliminate energy-inefficient products (in 23 categories ranging from air conditioners to water pumps) from EU-28 consumer access in order to assist the EU with meeting its 2020 energy efficiency objective.50 The directive also addresses ancillary environmental impacts, such as water use and recyclability. Other leading examples include: • Japan’s “top-runner” approach to energy efficiency standards adopted in 1998, which stipulates that “the best product available on the market sets the standard and other products of the same product type have to achieve this standard within a certain timeframe… or can no longer be placed on the market.”51 • Massachusetts’ (US) “stretch code” provision has allowed more than 100 local governments to adopt stronger building energy-efficiency codes than the state standard.52 • Nine governments worldwide have established or have proposed fuel or carbon efficiency standards,53 including the EU carbon emissions efficiency standards for vehicles require a reduction by 2021 to an average of 95 grams CO2 per kilometer (the 2014 average was 123 grams). US standards call for approximately 86 grams per km by 2025.
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Managing Waste The EU WEEE directive is an example of federal-level rules concerning waste systems. Its aim is to “prevent or reduce the negative environmental effects resulting from the generation and management of WEEE and from resource use … [contributing] to sustainable production and consumption by the prevention of WEEE and by reuse, recycling and other recovery of wastes.”54 Other regulatory approaches to waste management have included setting targets for recycling rates, requiring consumer deposits on specific items, and creating economic incentives to recycle, such as ensuring that recycling is less expensive than landfill disposal and making recycling convenient (e.g., with curbside pickup). Additionally, some items have been banned altogether from landfills. However, patchwork waste management systems, such as found in the US, can generate confusion about rules that often diminishes the economic value of recycling. If recycled items are not properly separated from items that must be landfilled, large recycling losses (e.g. being landfilled) will occur. For a host of reasons including lack of economic incentives (including low landfill costs), the US recycling rate is only 34%, far below Germany and Austria at 62-63%. The EU is aiming for a 50% rate by 2020 and a small Japanese town, Kamikatsu, is aiming for zero waste by 2020.55
Avoiding Resource Depletion
RELATED TOPICS
Resource management has typically consisted of governments • Adaptation either regulating the use of resources they control or assigning property rights to individuals. In doing so, the central question • Adaptive Management in determining the best approach generally revolves around how to avoid the “tragedy of the commons”—a scenario in which a resource accessible to all at little or no cost is unsustainably depleted in pursuit of personal gain. Though historically restrictive regulations have been viewed as the primary remedy for avoiding resource depletion, cooperative schemes have been increasingly recognized as a means of successful resource management. According to Elinor Ostrom, co-recipient of the 2009 Nobel Prize in economics, successful communal management must follow eight principles: 1. a strong group identity 2. fairness in distributing costs and benefits 3. consensus decision-making 4. effective monitoring of effort and rewards 5. graduated sanctions 6. rapid and fair conflict resolution 7. sufficient autonomy when the group is part of a larger system 8. appropriate coordination between groups.56 As discussed in the section on Weak vs Strong Sustainability, a key consideration in resource-management regulations is how to properly value finite resources. How can the value to future generations of a finite resource be included in the valuation equation? Should resources be valued low, thus encouraging their development, or valued high, encouraging their conservation and efficient use?
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Protecting Species Legislative action to prevent species extinction began in 1900 with the passing of the Lacey Act, the landmark US legislation that bans the trade of illegally sourced products.57 It wasn’t until 1975, however, when the international community joined to take collective action on species protection. Drafted after an earlier resolution of The International Union for Conservation of Nature (IUCN), the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) is a voluntary, legally binding, multilateral agreement. Initially 80 signatories agreed to this framework that guides national legislation to protect endangered species, which now has 181 parties.58 The IUCN Red List of Threatened Species is a comprehensive catalogue of taxonomic, conservation status, and distribution information on plants, fungi, and animals. Their listings of “Critically Endangered,” “Endangered,” and “Vulnerable” indicate each species relative risk of global extinction.59 Regulatory approaches to protect threatened species include creating protected areas and establishing economic incentives. For example: • In Manitoba, Canada, the “Protected Areas Initiative” aims to “build a network of designated protected areas that conserve ecosystems and maintain biodiversity in all 16 ecoregions.” The network includes government-owned land and private lands owned by Ducks Unlimited Canada, Nature Conservancy, and Nature Manitoba. Protected areas prohibit activities that “may significantly and adversely affect habitat.”60 • The Czech Republic’s Natura 2000 network was established in response to the EU Council Directives on natural habitats and wild birds. Its purpose is to “guarantee protection of those animal and plant species and habitat types that are the most valuable, threatened, rare or restricted to a certain area in the European context.” The network includes 41 “Special Protection Areas” and “Sites of Community Importance.”61 • The US Endangered Species Act (ESA) of 1973 establishes regulations protecting threatened and endangered plants and animals that includes private and public lands. Federal agencies are required to ensure their actions are not likely to jeopardize any listed species, and domestic or foreign commerce is generally prohibited from use of any listed species. Because about half of listed species have more than 80% of habitats on private lands, the Act includes assistance for private landowners to create habitat protection plans, which serve to protect the landowners from ad hoc regulatory challenges.62 Economic regulatory incentives include the following: • Legal or Statutory incentives ¤ Safe Harbor agreements ¤ Candidate Conservation agreements ¤ Regulatory relief ¤ Property rights innovations ¤ Conservation easements ¤ Covenants and deed restrictions ¤ Stewardship exchange agreements
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• Financial incentives ¤ Compensation programs ¤ Insurance ¤ Cost-share incentives ¤ Conservation stewardship incentives ¤ Land and water rental and leases ¤ Conservation contracts ¤ Debt forgiveness • Public tax incentives ¤ Income, property, capital gains, and estate tax incentives • Facilitative incentives ¤ Education and technical assistance ¤ Administrative and organizational structures ¤ Recognition incentives63 Many of these incentives can be enhanced by market-oriented approaches, such as user fees, ecotourism promotion, ecolabeling and certifications, mitigation and conservation banking systems, transferable development rights, and ecosystem service markets. However, the effectiveness of any such efforts depends on proper implementation and oversight. A comprehensive 2011 analysis of regulations governing ecosystem services, resource sustainability, and biodiversity found that regulatory and economic tools are often implemented without “appropriate studies to assess their effectiveness.”64 The analysis, using 34 international case studies, confirmed the benefits of “adaptive management” (i.e., regular monitoring to enable “learning through doing”) and supported the importance of knowledgeable leadership in ensuring effective outcomes. Furthermore it stated that: “Growing recognition of the often hidden values of ecosystems services now supports [the CBD’s] recommendation to use economic or social instruments to promote effective conservation. Examples include waste-trading schemes, eco-labeling, creation of knowledge networks, and especially public payment for maintenance of certain ecosystem services.”65 Further, the World Business Council for Sustainable Development (WBCSD) has stressed importance of closer collaboration between businesses and policymakers within the UN Convention on Biological Diversity (CBD) and other multilateral environmental agreements. According to the WBCSD: “Much biodiversity and ecosystem policy and regulation relies on the private sector in its implementation, and in any event, it is often the private sector which has the resources and flexibility to develop and implement solutions at scale.… Principles should include providing clear signals for business, creating a level playing field, recognizing the importance of property rights, [and] being mindful of potential economic and social impacts and adaptable to cultural differences between nations.”66
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Restricting Land-Use Land use regulations define the rights and responsibilities of landowners and stakeholders, such as neighborhood associations and local governments. Typical zoning regulations are defensive in nature—in that they do not compel actions, but rather prevent actions (e.g., height limitations, parking limitations or requirements, design guidelines, and type of use restrictions). Specific land use decisions are often made in the context of long-range, “comprehensive” plans that articulate community-wide, quality-of-life goals that land uses support. Land-use regulations can include incentives or requirements for sustainable development, such as requirements on landowners for endangered species protections. Governments have sometimes required sustainability performance of their own buildings before adopting rules for the private sector. Land use and corresponding transportation plans largely lock-in many aspects of the sustainability performance for citizens and enterprises. Governments have used land-use rules to restrict their rate of growth and/or regional sprawl. Specific regulations in support of sustainability include: • Form-based zoning code • Creation of mixed-use zoning • Allowing solar panels by right • Incentives to green building practices • Open space credits for green (i.e., vegetated) roofs • Requiring minimum density around transit stations • Reducing parking requirements for transit stations • Allowing small-scale farming and community gardens under permitted uses67
MECHANISMS FOR ADDRESSING SOCIAL ISSUES Protecting Indigenous Rights According to the UN, indigenous people number 370 million—or about 5% of global population – in about 5,000 different groups in 90-plus countries.68 The UN Declaration on the Rights of Indigenous Peoples (UNDRIP), in 2007, called on nations to “provide effective mechanisms for prevention of and redress” for: 1. depriving them of their integrity as distinct peoples 2. dispossessing them of their lands 3. forced population transfer 4. forced assimilation or integration 5. racial or ethnic discrimination propaganda Nations are also to provide access to education in indigenous people’s own culture and own language.69 However, so-called “land-grabbing,” a worldwide phenomenon in developing countries, often violates
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these principles. How much land has been transferred with little transparency ranges from the World Bank’s estimate of 120 million acres to Oxfam’s 560 million acres.70 Indigenous rights battles continue worldwide, often on a case-by-case basis. Indigenous rights laws are complex; for example, Canada has passed 25 acts pertaining to indigenous relationships.71 Partly in response to UNDRIP, national governments (e.g., Australia and the US) are engaging in new efforts to support more successful collaboration. A 2013 Australian report found, for example, that existing government efforts needed to be refined towards whole systems that support greater senior-local-staff decision making, greater flexibility in funding arrangements, and bureaucratic culture shifts towards collaboration.72
Ending Slavery, Forced, and Child Labor Slave labor violates the international human rights declarations and policies and is fundamentally illegal worldwide. For example, the EU’s “Charter of Fundamental Rights” includes these provisions:
RELATED TOPICS • Universal Declaration on Human Rights (UNDHR)
• No one shall be held in slavery or servitude. • No one shall be required to perform forced or compulsory labor. • Trafficking in human beings is prohibited.73 However, according to Anti-Slavery International, “forced labour,” including child labor, persists in these industries: • Agriculture and fishing • Domestic work • Construction/mining/quarrying and brick kilns • Manufacturing/processing/packaging • Prostitution and sexual exploitation • Illegal activities74 The US adopted a law in 2016 prohibiting slave labor imports, identifying 136 goods from 74 countries that will be banned. The list was developed by the US Department of Labor in 2014 to raise public awareness; annual global illegal profits from slave labor were estimated at $150 billion per year. The law allows competitors and interest groups (interested parties) to petition for an investigation of whether an imported product was made with slave or forced labor; products can be forfeited if the investigation affirms the petition. A presidential executive order in 1999 had already prohibited the federal government from purchasing such products.75 Other nations banning slave-labor products include Canada and Australia. It is estimated that 11% of children worldwide, approximately 168 million, are engaged in child labor, almost half of which are involved in hazardous work. Business principles regarding child labor have been adopted by the UN Global Compact, Save the Children and UNICEF.76 Canada has adopted one regulatory approach – ensuring that its development aid is “consistent with the international standards of human rights.”77
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Defunding Conflicts Growing global awareness of armed efforts to secure valuable minerals—and the adverse impact on local peoples—has had a number of regulatory and business impacts. For example, in the US, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 included a requirement that persons (corporations) annually disclose: “whether any conflict minerals that are necessary to the functionality or production of a product … originated in the Democratic Republic of the Congo or an adjoining country, and, if so, to provide a report describing, among other matters the measures taken to exercise due diligence on the source and chain of custody of those minerals, which must include a private sector audit of the report.”78
Requiring Transparency Recent transparency regulations have included requirements to list genetically-modified organism (GMO) ingredients in foods and to provide more complete ingredients labeling in cosmetics. The EU has required GMO labeling since 1998,79 and in 2014 added “engineered nanomaterials” labeling requirements to food ingredients lists.80 Three US states will soon require GMO ingredients to be labeled. These regulations, however, have generated controversy regarding: 1. whether consumer preference should take precedence over science (though 96% of US consumers favor GMO labeling, there is no scientific evidence that there is “material difference” between the GM and traditional foods) 2. costs of labeling requirements to consumers 3. potential consumer confusion.81 The EU’s Cosmetics Directive was adopted in 2003 and bans over 1,300 chemicals “known or suspected to cause cancer, genetic mutation, reproductive harm or birth defects” from cosmetics (the comparable number of restricted chemicals in the US is 11). The EU regulation partially adopted the Precautionary Principle by requiring pre-market safety assessments. It also prohibits animal testing and requires government authorization of any nanomaterial ingredients.82 Cosmetics regulation reform legislation was introduced in the US Congress in 2015. It would require federal chemical safety testing, “good manufacturing” practices, and full ingredient disclosure on some products. However, according to the Campaign for Safe Cosmetics, the approach needs strengthening in numerous areas, including consumer’s right-to-know about adverse reactions, fragrance ingredients, industry self-certification of product safety, and safety standards.83
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ADDITIONAL RESOURCES • OECD Database on Environmental and Natural Resource Management Policy Instruments http://www2.oecd.org/ecoinst/queries/Default.aspx# • The UN Sustainable Development Knowledge Platform website has national sustainable development plans and reports, “National Reports by Topic: National Sustainable Development Strategies,” https://sustainabledevelopment.un.org/topics/nsds/nationalreports • The whole-system approach of the German government towards sustainability, including not burdening future generations with government debt, is a valuable example. See German Federal Government, “Sustainability,” https://www.bundesregierung.de/Content/EN/ StatischeSeiten/Schwerpunkte/Nachhaltigkeit/nachhaltigkeit-2007-04-13-die-10-managementregeln-der-nachhaltigkeit.html?nn=393722 • The ICLEI Case Studies series describes how local governments are driving more sustainable development: http://www.iclei.org/index.php?id=1163 • The US Government’s FedCenter website includes resources pertaining to sustainable procurement including Executive Orders and other regulations, case studies and tools (US Government, FedCenter, “Acquisition”: https://www.fedcenter.gov/programs/buygreen/). • ISO, “First International Standard for sustainable procurement nears publication”: http:// www.iso.org/iso/home/news_index/news_archive/news.htm?refid=Ref2105 • The UN’s Global Marketplace, and UNEP’s Sustainable Procurement, include sustainable procurement tools and training resources. (See UN Global Marketplace, “Sustainable Procurement,” and UNEP, “Sustainable Procurement”: https://www.ungm.org/Public/ KnowledgeCentre/SustainableProcurement and http://www.unep.org/resourceefficiency/ Consumption/SustainableProcurement/tabid/55550/Default.aspx); • Two EU initiatives are designed to make environmental information more accessible to citizens: Infrastructure for Spatial Information in Europe (INSPIRE) and Global Monitoring for Environment and Security (GMES) (See European Commission Environment, “Land use”: http://ec.europa.eu/environment/archives/land_use/index_en.htm). • The World Bank in 2006 produced a comprehensive analysis of Sustainable Land Management challenges and tradeoffs. (See World Bank, “Sustainable Land Management – Challenges, Opportunities and Trade-offs,” 2006: https://openknowledge.worldbank.org/ bitstream/handle/10986/7132/366540PAPER0Su11PUBLIC0as0of0July71.txt?sequence=2) • The Climate Action Tracker Consortium, founded in 2009, provides “independent scientific analysis produced by four research organizations tracking climate action and global efforts towards the globally agreed aim of holding warming below 2 degrees C” in 32 countries. (See Climate Action Tracker, “What is CAT?”: http://climateactiontracker.org/about.html). • The Rocky Mountain Land Use Institute (University of Denver, US) developed a model sustainable community development code in 2009 that addresses 29 specific topics from climate change to steep slopes to food production. (College of Architecture and Planning, University of Colorado, Denver, “Sustainable Community Development Code Framework”: http://www.ucdenver.edu/academics/colleges/ArchitecturePlanning/AboutCAP/
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ResearchCenters/CCSU/Sustainable_Community_Development_Code_Framework/Pages/ default.aspx) • The Land Use Management for Sustainable European Cities (LUMASEC) program of URBACT, an EU program designed to foster sustainable integrated urban development, provides tools and case studies. (See RBACT, “LUMASEC Results”: http://urbact.eu/lumasec#) • “The European Union’s Energy using Products – EuP – Directive 2005/32 EC: Taking Transnational Eco – Product Design • Regulation One Step Further” by Bernhard Kuschnik: http://www.temple.edu/law/tjstel/2008/spring/v27no1-Kuschnik.pdf • Carbon Taxing ¤ OECD, “Taxation, Innovation and the Environment: A Policy Brief,” 2010: https:// www.oecd.org/environment/tools-evaluation/48178034.pdf ¤ Carbontax.org on British Columbia carbon tax as standard bearer for carbon taxing. http://www.carbontax.org/where-carbon-is-taxed/british-columbia/ and “British Columbia’s Carbon Tax: By The Numbers,” Dec. 2015. Charles Komanoff and Matthew Gordon, Carbon Tax Center, : https://www.carbontax.org/wp-content/uploads/CTC_ British_Columbia’s_Carbon_Tax_By_The_Numbers.pdf
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Chapter Eight Endnotes 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24.
David W. Orr, “State of the World 2014: Governing for Sustainability,” Worldwatch Institute, 2014: http:// worldwatch.org/bookstore/publication/state-world-2014-governing-sustainability OECD, “The OECD database on Policy Instruments for the Environment”: http://www2.oecd.org/ecoinst/ queries/Default.aspx# M Aranxta Colchero et al., “Beverage purchases from stores in Mexico under the excise tax on sugar sweetened beverages: observational study,” BJM, 24 Nov. 2015: http://www.bmj.com/content/bmj/352/bmj.h6704. full.pdf Arthur C. Pigou, The Economics of Welfare, Part II, Chapter XXII Public Operation of Industries, 1920: http://www.econlib.org/library/NPDBooks/Pigou/pgEW.html Ibid. See Richard H. Thaler, Nudge – Improving Decisions about Health, Wealth & Happiness, Penguin, 2009. John M. Gowdy, “Governance, Sustainability and Evolution,” Worldwatch Institute, State of the World 2014: Governing for Sustainability,” Chapter 3, Island Press, 2014: http://www.worldwatch.org/bookstore/publication/state-world-2014-governing-sustainability UN Dept. of Economic and Social Affairs, Sustainable Development Knowledge Platform, “Sustainable consumption and production”: https://sustainabledevelopment.un.org/topics/sustainableconsumptionandproduction German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety, “General Information – Products and Environment”: http://www.bmub.bund.de/en/topics/economy-products-resources-tourism/products-and-environment/general-information/ US White House, Council on Environmental Quality, “Federal Leadership on Climate Change and Environmental Sustainability – Executive Order 13693,” 19 Feb. 2015: https://www.whitehouse.gov/administration/eop/ceq/sustainability UK Government, “Whistle-blowing for Employees”: https://www.gov.uk/whistleblowing/what-is-a-whistleblowe US Securities and Exchange Commission, “Public Law 107-204”: https://www.sec.gov/about/laws/soa2002.pdf Controllers Aps “The Components of EuroSox”: http://www.eurosox.dk/files/TheComponentsofEuroSox.pdf American Sustainable Business Council, “Incorporation Transparency”: http://asbcouncil.org/incorporation-transparency#.V7yZVrW89Eo Sherrill Brown Wells and Samuel F. Wells, Jr., “Shared Sovereignty in the European Union: Germany’s Economic Governance.” Yale Journal of International affairs, 2008: http://yalejournal.org/wp-content/uploads/2011/01/083203wells.pdf European Union “The Economy”: https://europa.eu/european-union/about-eu/figures/economy_en Charles F. Parker and Christer Karlsson, “The European Union as a global climate leader: confronting aspiration with evidence,” 2016: http://link.springer.com/article/10.1007/s10784-016-9327-8 John Cassidy, “Why the Remain Campaign Lost the Brexit Vote,” New Yorker, June 24, 2016: http://www. newyorker.com/news/john-cassidy/why-the-remain-campaign-lost-the-brexit-vote Council on Foreign Relations, “CFR Backgrounders”: http://www.cfr.org/trade/naftas-economic-impact/p15790 US Department of Energy, “US Department of Energy’s Clean Energy Investment Center”: http://energy. gov/technologytransitions/us-department-energys-clean-energy-investment-center US Government Publishing Office, “H.R. 3603”: https://www.gpo.gov/fdsys/pkg/BILLS-112hr3606enr/pdf/ BILLS-112hr3606enr.pdf European Organisation for Sustainable Development (EOSD), “EOSD: The Sustainability Partner”: http:// eosd.org/en/sustainable_partner.html Korean Environmental Industry & Technology Institute (KEITI), “Eco-label?”: http://el.keiti.re.kr/enservice/enpage.do?mMenu=1&sMenu=1 Eliot Metzger, “Bottom Line on Cap and Trade,” World Resources Institute, July 2008: http://www.wri.org/ publication/bottom-line-cap-and-trade
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25. Paul Krugman, “Building a Green Economy,” The New York Times, 7 April 2010: http://www.nytimes. com/2010/04/11/magazine/11Economy-t.html 26. Roy Morrison, Tax Pollution, Not Income: A New Prosperity in an Economic Age, Writer’s Publishing Cooperative, 2003: http://www.beechriverbooks.com/id23.html 27. Russell Bishop, “Raising Energy Efficiency Standards to the Global Best,” New Climate Economy, 2015: http://2015.newclimateeconomy.report/wp-content/uploads/2015/11/NCE_Raising-energy-efficiency-standards-to-the-global-best1.pdf 28. Government of Sweden, “Sweden Tackles Climate Change,”: https://sweden.se/nature/sweden-tackles-climate-change/ 29. Ministry of Finance, British Columbia, “Carbon Tax: Overview of Carbon Neutral Tax”: http://www.fin.gov. bc.ca/tbs/tp/climate/carbon_tax.htm 30. Robert Stavins et. al., Center for Economic and Policy Research (CEPR), “The US sulphur dioxide cap and trade programme and lessons for climate policy,” 12 Aug. 2012: http://voxeu.org/article/lessons-climate-policy-us-sulphur-dioxide-cap-and-trade-programme 31. Australian Government, National Land Programme, “Caring for our Country Achievements Report 2008– 2013”: http://www.nrm.gov.au/publications/achievements-report 32. Lenore Taylor, “Australian budget hands emissions reduction fund another year of funding,” The Guardian, 12 May, 2015: https://www.theguardian.com/environment/2015/may/12/australian-budget-hands-emissions-reduction-fund-another-year-of-funding 33. UNEP, “Rio Declaration on Environment and Development”: http://www.unep.org/documents.multilingual/ default.asp?documentid=78&articleid=1163 34. For example: UK Greenpeace, “The Precautionary Principle”: http://www.greenpeace.org.uk/about/the-precautionary-principle 35. Joel Makower and the editors of GreenBiz.com, “State of Green Business 2014,” GreenBiz Media, p. 11, at http://info.greenbiz.com/rs/greenbizgroup/images/state-green-business-2014.pdf 36. Roni Caryn Rabin, “A Call for Action on Toxic Chemicals,” The New York Times, 1 July 2016: http://well. blogs.nytimes.com/2016/07/01/a-call-for-action-on-toxic-chemicals/?hp&action=click&pgtype=Homepage&clickSource=story-heading&module=second-column-region®ion=top-news&WT.nav=top-news 37. See, for example, Andrew Porterfield, “Is the precautionary principle guiding law or a political notion?” Genetic Literacy Project, 23 June 2016: https://www.geneticliteracyproject.org/2016/06/23/precautionary-principle-guiding-law-political-notion/ 38. Paul Johnston and David Santillo, “Precaution Is Simply Common Sense,” GreenPeace, May 24, 2012: http:// www.greenpeace.org/international/en/news/Blogs/makingwaves/precaution-is-common-sense/blog/40617/ 39. Op cit. Porterfield, 2016 40. US EPA, “Summary of the Toxic Substances Control Act”: https://www.epa.gov/laws-regulations/summary-toxic-substances-control-act 41. US EPA, “The Frank R. Lautenberg Chemical Safety for the 21st Century Act”: https://www.epa.gov/assessing-and-managing-chemicals-under-tsca/frank-r-lautenberg-chemical-safety-21st-century-act 42. Chemical Risk, “Global round-up of RoHS-style regulations,” August 2014: https://chemicalwatch. com/20709/global-round-up-of-rohs-style-regulations 43. European Chemicals Agency (ECHA), “Understanding REACH”: https://echa.europa.eu/regulations/reach/ understanding-reach 44. US EPA, “TRI Laws and Regulatory Activities”: https://www.epa.gov/toxics-release-inventory-tri-program/ tri-laws-and-regulatory-activities; US EPA, “U.S. TRI Program: A Leader in International Chemical Release Reporting”: https://www.epa.gov/toxics-release-inventory-tri-program/tri-around-world
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45. European Commission – DG Environment, “Development of Guidance on Extended Producer Responsibility (EPR),” 2014: http://ec.europa.eu/environment/waste/pdf/target_review/Guidance%20on%20EPR%20 -%20Final%20Report.pdf 46. Environment and Climate Change, Canada, “Extended Producer Responsibility”: https://www.ec.gc.ca/gddmw/default.asp?lang=En&n=FB8E9973-1 47. Op. cit. European Commission – DG Environment, 2014 48. CalRecycle, “Electronic Waste Management: Retailer Information & Electronic Waste Recycling Fee”: http://www.calrecycle.ca.gov/Electronics/Retailer/ 49. OECD, “The State of Play on EPR: Opportunities and Challenges,” 2014: https://www.oecd.org/environment/waste/Global%20Forum%20Tokyo%20Issues%20Paper%2030-5-2014.pdf 50. European Commission, “Ecodesign Legislation: Framework Directive,” 14 Oct. 2016: https://ec.europa.eu/ energy/sites/ener/files/documents/list_of_ecodesign_measures.pdf 51. Osamu Kimura, “Japan Top Runner Approach for energy efficiency standards,” SERC Discussion Paper: SERC09035, 2010: http://www.climatepolicy.jp/thesis/pdf/09035dp.pdf 52. Massachusetts’ Business for Clean Energy, “Building Energy Efficiency Standards”: http://www.mabizforcleanenergy.com/ma-supports-clean-energy/building-energy-efficiency-standards/ 53. The International Council on Clean Transportation, “Global Passenger Vehicle Standards”: http://www. theicct.org/info-tools/global-passenger-vehicle-standards 54. European Commission, “Frequently Asked Questions on Directive 2012/19/EU on Waste Electrical and Electronic Equipment (WEEE),” April 2014: http://ec.europa.eu/environment/waste/weee/pdf/faq.pdf 55. Tracy Fernandez Rysavy, “Shrinking Our Waste,” Green America, 2016: http://www.greenamerica.org/Rethinking-Recycling/Articles/summer-2016/shrinking-our-waste.html 56. John M. Gowdy, “Governance, Sustainability and Evolution,” Worldwatch Institute, State of the World 2014: Governing for Sustainability, Chapter One, Island Press, 2014. 57. US Fish & Wildlife Service, International Affairs, “Lacey Act”: https://www.fws.gov/International/laws-treaties-agreements/us-conservation-laws/lacey-act.html 58. CITES, “What is CITES?”: https://www.cites.org/eng/disc/what.php and “Convention on International Trade in Endangered Species of Wild Fauna and Flora,” 1975: https://www.cites.org/eng/disc/text.php 59. International Union for Conservation of Nature and Natural Resources, “Introduction”: http://www.iucnredlist.org/about/overview 60. Government of Manitoba Province, Canada, “Manitoba Conservation and Water Stewardship: Annual Report 2014-2015”: http://www.gov.mb.ca/finance/publications/pubs/annualrep/2014_15/conservation.pdf 61. Ministry of the Environment of the Czech Republic, “Natura 2000”: http://www.mzp.cz/en/natura_2000_network 62. US EPA, “Summary of the Endangered Species Act”: https://www.epa.gov/laws-regulations/summary-endangered-species-act and US Fish & Wildlife Service, “Our Endangered Species Program and How It Works With Landowners”: https://www.fws.gov/endangered/esa-library/pdf/landowners.pdf 63. Frank Casey et al., “Incentives for Biodiversity Conservation: An Ecological and Economic Assessment,” Defenders of Wildlife, 2006: http://www.defenders.org/publications/incentives_for_biodiversity_conservation.pdf 64. R. E. Kenward, et. al., “Identifying governance strategies that effectively support ecosystem services, resource sustainability and biodiversity,” Proceedings of the National Academy of Sciences of the United States of America, 2 Feb. 2011: http://www.pnas.org/content/108/13/5308.full 65. Ibid. 66. WBCSD, “Effective biodiversity and ecosystem policy and regulation – Business input to the COP10 of the Convention on Biological Diversity”: http://www.wbcsd.org/Clusters/Ecosystems-Landscape-Management/Resources/Effective-biodiversity-ecosystem-policyregulation-Business-input-COP10-convention-on-biological-diversity 67. North Central Texas Council of Governments, “Sustainable Zoning Practices”: http://www.nctcog.org/trans/ sustdev/landuse/formbased_codes.asp
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68. UN Secretariat of the UN Permanent Forum on Indigenous Issues, “Partnering with Indigenous Peoples: Experiences and Practices,” 2011: http://www.un.org/esa/socdev/unpfii/documents/LibraryDocuments/partnering-with-ips.pdf 69. UN, “United Nations Declaration on the Rights of Indigenous Peoples,” 2008: http://www.un.org/esa/socdev/unpfii/documents/DRIPS_en.pdf 70. Fred Pearce, The Land Grabbers: The New Fight Over Who Owns the Earth, Beacon Press, 2012. 71. Government of Canada, Indigenous and Northern Affairs Canada, “Regulations Currently in Force”: http:// www.aadnc-aandc.gc.ca/eng/1337349146383/1337349307701 72. Australian Government, “Closing the Gap Clearinghouse: Engaging with Indigenous Australia—Exploring the Conditions for Effective Relationships with Aboriginal and Torres Strait Islander communities,” 2013: http://www.aihw.gov.au/uploadedFiles/ClosingTheGap/Content/Publications/2013/ctgc-ip5.pdf 73. EU Agency for Fundamental Rights, “EU Charter of Fundamental Rights”: http://fra.europa.eu/en/charterpedia/article/5-prohibition-slavery-and-forced-labour 74. Anti-Slavery International, “Forced labour”: http://www.antislavery.org/english/slavery_today/forced_labour/ 75. Hogan Lovells, “New Law Expands Liability for Forced Labor in Supply Chains – Food Companies at Risk,” 25 Feb. 2016: http://www.lexology.com/library/detail.aspx?g=daa2d092-4acd-4975-88b2-bd860d90113f 76. UNICEF, Children and Business: http://childrenandbusiness.org/ 77. Government of Canada, “Child labour”: http://international.gc.ca/world-monde/aid-aide/child_labour-travail_enfants.aspx?lang=eng 78. US Government, Securities and Exchange Commission, “Specialized Corporate Disclosure”: https://www. sec.gov/spotlight/ dodd-frank/speccorpdisclosure.shtml 79. International Centre for Trade and Sustainable Development, “GMOs, CODEX: Controversy on Labelling Rules,” 1 June 1998: http://www.ictsd.org/bridges-news/bridges/news/gmos-codex-controversy-on-labelling-rules 80. European Commission, Food, “Food information to consumers: legislation”: http://ec.europa.eu/food/safety/ labelling_nutrition/labelling_legislation/index_en.htm 81. Lily Puckett, “Why The New GMO Food-Labeling Law is So Controversial,” Huffington Post, 20 April 2016: http://www.huffingtonpost.com/teen-vogue/why-the-new-gmo-foodlabel_b_9738698.html 82. Campaign for Safe Cosmetics, “International Laws”: http://www.safecosmetics.org/get-the-facts/regulations/ international-laws/ 83. Campaign for Safe Cosmetics, “US Laws: Senate Personal Care Product Safety Act of 2015”: http://www. safecosmetics.org/get-the-facts/regulations/us-laws/
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CHAPTER NINE Standards, Protocols, and Certifications Chapter Table of Contents
Purpose. . ............................................................................................................................... 144 Overview.............................................................................................................................. 144 Standards and Protocols.......................................................................................................... 144 Standards. . ..................................................................................................................... 144 International Organization for Standardization (ISO)................................................... 144 ISEAL Alliance....................................................................................................... 145 Global Initiative for Sustainability Reporting (GISR)................................................... 146 Social Accountability 8000 (SA 8000) . . ...................................................................... 147 Reporting Protocols. . ....................................................................................................... 147 GHG Protocol – Inventorying and Reporting............................................................... 148 Carbon Disclosure Project (CDP). . ............................................................................. 149 Voluntary Carbon Standard (VCS)............................................................................. 150 GRI Reporting Framework.. ....................................................................................... 150 Sustainability Accounting Standards Board (SASB).. .................................................... 151 International Integrated Reporting Council (IIRC)...................................................... 151 Certifications & Labeling........................................................................................................ 152 Environmental Product Declaration . . .......................................................................... 152 Enterprises..................................................................................................................... 152 B Corporation......................................................................................................... 152 Green Globe........................................................................................................... 152 Supply Chain................................................................................................................. 153 Fairtrade International (FLO). . .................................................................................. 153 Forest Stewardship Council (FSC).. ............................................................................ 153 Rainforest Alliance.................................................................................................. 154 Marine Stewardship Council (MSC)........................................................................... 154 Organic Certifications.............................................................................................. 154 Energy and Carbon.......................................................................................................... 155 ENERGY STAR . . .................................................................................................... 155 European ENERGY STAR......................................................................................... 156 Compliance Carbon Credits...................................................................................... 156 Voluntary Carbon Credits......................................................................................... 156 Green-e.................................................................................................................. 156 Manufactured Products.................................................................................................... 157 Cradle to Cradle Certified. . ....................................................................................... 157 EPEAT................................................................................................................... 157 Design for the Environment...................................................................................... 157 Green Seal. . ............................................................................................................ 158 Built Environment.......................................................................................................... 158 Green Buildings. . ..................................................................................................... 158 Sustainable Infrastructure......................................................................................... 161 Scorecards. . ........................................................................................................................... 161 Investments.. .................................................................................................................. 161 Socially Responsible Investing (SRI).......................................................................... 161 Dow Jones Sustainability Index. . ................................................................................ 162 FTSE4Good............................................................................................................ 162 Consumer Goods. . ........................................................................................................... 162 GoodGuide............................................................................................................. 162 Additional Resources.............................................................................................................. 163 Chapter Nine Endnotes........................................................................................................... 164
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PURPOSE As the field of sustainability has matured, standards have emerged that shape practices related to accounting, measuring, and reporting. Product standards shape how products are manufactured and services are delivered. Whether or not they are adopted by organizations, standards and certifications provide helpful guidelines and examples for any organization interested in sustainability. Sustainability professionals familiar with these standards, certifications, and guidelines can use them to establish market distinction for their organizations, align practices with growing global norms, and vet supplier contracts.
OVERVIEW As consumers embrace product differentiation based on sustainability performance, marketers have become more aggressive about giving their products a competitive advantage through sustainability or green-product claims. Terminology varies, but terms that seem to attract consumers include “natural,” “locally grown,” and “no artificial growth hormones.”1 The 2005 EU Directive on unfair commercial practices specifically addressed misleading environmental claims. It defined “environmental claims” or “green claims” as “the practice of suggesting or otherwise creating the impression that a product or service is environmentally friendly or is less damaging to the environment than competing goods or services.” The directive specifies that claims “must not emphasize one environmental issue and hide any trade-offs or negative impacts on the environment.”2 High quality sustainability certifications that require minimum standards of performance have become indispensable to organizations. They help guide internal decision-making and provide assurance to stakeholders that sustainability claims are authentic—countering potential “greenwashing” accusations. This chapter explains the difference between standards, certifications, and labeling and briefly describes examples representing key approaches that sustainability professionals should understand.
STANDARDS AND PROTOCOLS Standards While legislation can protect the public from illegal and fraudulent behavior, it rarely goes far enough and typically lags the need for change. To fill this void and help guide performance, several international NGOs have developed rigorous standards to guide responsible behavior in a variety of areas. Once a standard has been set, organizations in both public and private sectors can adopt policies and practices that will help them conform to these standards.
International Organization for Standardization (ISO) The International Organization for Standardization (ISO) is the “world’s largest developer of voluntary International Standards.”3 Comprising 162 member countries, the ISO has a central secretariat based in Geneva, Switzerland. Its standards are developed through a “consensus process” by experts in the field for which they will be applied.4
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ISO standards families (each of which include several specific standards) or Technical Specifications related to sustainable development include: • ISO 9000 – Quality Control • ISO 13065 – Sustainability criteria for bioenergy • ISO 14000 – Environmental management (updated 2015) ¤ ISO 14001 – Environmental management systems (EMS) ¤ ISO 14004 – Implementing EMSs (Guidance only) ¤ ISO 14020 – Environmental labels and declarations ¤ ISO 14040 – Life cycle assessment (LCA) ¤ ISO 14063 – Environmental communication ¤ ISO 14064, 65, 66, 67, 69 – GHG emissions measurement • ISO/TS 14067:2013 – Greenhouse gas (GHG) and carbon footprint of products • ISO 16000 – Air quality (also ISO 12219 regarding air quality in vehicles) • ISO 19011 – EMS Auditing • ISO/TS 21929-2 – Sustainability in building construction • ISO 24510:2007 / 24511:2007 / 24512: 2007 are among standards relating to water (also ISO 16075 concerning treated wastewater in irrigation) • ISO 20400 – Sustainable procurement • ISO 26000 – Social responsibility (guidance only – not an auditable standard) • ISO 37101 – Community performance in sustainable development • ISO/TS 37151 – Measuring performance of “smart” community infrastructures
ISEAL Alliance The ISEAL Alliance is a global membership organization with the mission of strengthening sustainability standards. The membership is comprised of multi-stakeholder bodies that develop sustainability standards and accreditation programs. In addition ISEAL engages governments, academia, businesses, and nonprofits with a commitment to improving sustainability standards. Their stated goals are to: • Improve the impacts of standards • Define credibility for sustainability standards • Increase the uptake of credible sustainability standards • Improve the effectiveness of standards, including driving innovations in standards5 As part of their work, ISEAL has established a “Challenge the Label” initiative, based on their proposed five “universal truths” regarding sustainability claims. Claims should be: 1. Clear – easily understood and free from misleading details. 2. Accurate – truthful and based on substantiated evidence.
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3. Relevant – pertain to an issue that is material or significant to the product or business and not a distraction from bigger and more important issues. The information system should be: 4. Transparent – information about the system behind the sustainability claim must be freely available and easily accessible. 5. Robust – controls must be in place regarding when the claim can be used and by whom, and clear criteria must be met before a claim can be used.6 ISEAL suggests asking four key questions when evaluating the reliability of claims: • What product or service does the claim cover? Certifications attesting to the built environment provide no information about organizational practices or a product’s life cycle. • What type of claim is being made? A product that purports to perform better than its rivals based on testimonials asserts something very different than one that has gained Cradle to Cradle Certification. • What sustainability attributes does the claim cover? Organizations that pursue 100% renewable energy throughout their supply chain may still fail to address the needs of their employees or the human rights of indigenous peoples. • How is the claim verified? A third-party verified ecolabel would engender greater confidence than one issued by an affiliated organization.7
Global Initiative for Sustainability Reporting (GISR) Founded by CERES and the Tellus Institute, the Global Initiative for Sustainability Reporting (GISR) is a public benefit corporation that drives “transparency and excellence in environmental, social, and governance (ESG) research, ratings and indices to improve business performance and investment decision-making.”8 Working to improve the way companies measure and report their sustainability performance to investors, the GISR framework sets forth twelve principles. These principles are intended as “a high-level normative statement to guide the process and content aspects of sustainability ratings.”9 1. Transparency – A rating should be transparent to those whose decisions are affected by the application of such rating. 2. Impartiality – The design and application of a rating, whose primary users are external to the evaluated company, should be protected from undue influence by such company. 3. Continuous Improvement – Through periodic update, a rating should track and integrate the best-available science, measurement techniques, issues, and indicators. 4. Inclusiveness – Development of a rating should identify and systematically engage those stakeholders whose decisions are influenced by the application of the rating. 5. Assurability – A rating should be designed to allow for independent, third-party assurance that its application comports with the GISR Principles. 6. Materiality – A rating should assess performance based on sustainability issues rele-
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vant to the decision-making of stakeholders for which a rating is designed. 7. Comprehensiveness – Evaluating one or more aspects of sustainability performance should systematically assess for impacts on human, intellectual, natural, and social capital. 8. Sustainability Context – A rating should assess performance in the context of science-based thresholds and limits or, if unavailable, widely-accepted norms pertaining to long-term human and ecological wellbeing. 9. Long-Term Horizon – A rating should enable the evaluation of the long-term performance of a company while simultaneously providing insights into short- and medium-term outcomes in alignment with the long-term. 10. Value Chain – A rating should reflect all portions of a company’s value chain over which the company exercises significant influence. 11. Balance – A rating should utilize a mix of measurement techniques to capture historical and prospective performance. 12. Comparability – A rating should allow users to compare the performance of the same company over time and of different companies within the same time period.10 Additive to other reporting protocols, GISR varies from GRI, IIRC, and SASB in areas of process and content.11
Social Accountability 8000 (SA 8000) Social Accountability International (SAI) is a New York-based nonprofit developer and administrator of human-rights focused standards designed to support “decent work everywhere.” SAI’s goal is to “protect the integrity of workers around the world by building local capacity and developing systems of accountability.”12 SAI’s Social Accountability 8000 (SA 8000) workplace standard, was launched in 2001, updated in 2014, and is used in more than 3,700 factories in 69 countries.13 It requires certified organizations to comply with the following: • All laws and “prevailing industry standards” • Any other standards to which the organization subscribes • The SA 8000 requirements concerning child or forced/compulsory labor, health and safety, freedom of association and right to collective bargaining, discrimination, disciplinary practices, working hours, remuneration, and management systems (including suppliers and subcontractors)
Reporting Protocols Sustainability reporting systems have evolved to reflect the growing stakeholder interest in transparency and an interest in organizational sustainability performance. Reporting schemes, however, remain largely voluntary. Early leadership practices were focused on publicly reporting a comprehensive set of sustainability indicators. Such efforts sometimes foundered, as costs of obtaining the data exceeded the potential gains.
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Data that isn’t used for making better decisions, improving profitability or cost-effectiveness, or reducing risks can become a casualty of cost effectiveness. In the past twenty years, several key tools have gained substantial credibility and have become indispensable tools for decision makers and their stakeholders alike.
GHG Protocol – Inventorying and Reporting Launched in 2001, the Greenhouse Gas Protocol (GHG Protocol) standards provide guidance to organizations so they can accurately report on emissions. Developed by the World Resources Institute (WRI) and World Business Council for Sustainable Development (WBCSD), these standards also provide invaluable information in the efforts to address climate change. The main reason for developing and conforming to a uniform standard when reporting on emissions, is to avoid double counting. This becomes an issue of critical importance when scientists and decision makers aggregate data. This is especially relevant regarding value-chain emissions, which can reach 70% of an enterprise’s “carbon footprint,” and emissions from derivative activities, such as individual employee transportation to work. In preparing a greenhouse gas (GHG) inventory, organizations must first determine the boundaries of their report: • Organizational boundaries – To delegate responsibility for emissions, organizations may use an Equity Share approach, which aligns with ownership of the operations. Alternatively, using a Control approach, leads to the assigning of responsibility to those emissions that the organization has managerial or financial control over—regardless of equity position. • Operational boundaries – This assessment allows an organization to determine which direct and indirect emissions are a consequence of operations and therefore must be reported upon. Direct and indirect emissions are divided into three categories, known as “scopes.” GHG Protocol standards require disclosure of emissions that directly result from business operations— both Scope 1 and Scope 2 emissions. These scopes have very specific definitions to ensure no overlap during data aggregation. While emissions from third-party activities are optional, organizations are encouraged to report on upstream and downstream activities. • Scope 1 emissions are direct emissions from sources within the organization’s organizational boundary. This includes emissions from onsite combustion (non-biofuels) for heat and power and chemical production from process equipment such as refrigerants. • Scope 2 emissions are indirect emissions resulting from grid-supplied electricity. • Scope 3 emissions are indirect from all other sources, such as transportation-related activities (e.g. commuting, business travel, shipping, etc.) and waste disposal. To begin reporting organizations choose a “base year” (“the earliest relevant point in time for which they have reliable data”) against which they will compare their performance in future years. (Note that, in the context of GHG Corporate reporting, “base year” should not be confused with “baseline,” which is used as a point of comparison in Project Accounting.) If including—or excluding—information could influence the decisions or actions of users, then that information is considered to be “material” and must be reported upon. Therefore,
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the materiality test holds that in the event of a material discrepancy—due to error, omission, or miscalculation, for example—the Protocol requires the organization revise their reports. According to the GHG Protocol “[a] well-designed and maintained corporate GHG inventory can serve several business goals, including: • Managing GHG risks and identifying reduction opportunities • Public reporting and participation in voluntary GHG programs • Participating in mandatory reporting programs • Participating in GHG markets The GHG Protocol Corporate Standard, described above, addresses enterprise emissions from the value-chain, product life cycle, and project perspectives. With more standards under development the GHG Protocol also offers reporting standards for: • The Corporate Accounting and Reporting Standard provides guidance corporations with guidance for performing a GHG inventory, with a focus on scopes 1 and 2 (see also the Scope 2 Guidance). • The Corporate Value Chain (Scope 3) Standard instructs companies on how to account for their scope 3 emission in their value chains. • The Product Life Cycle Standard instructs businesses on how to account for their GHG emissions throughout a product’s life cycle. • The Project Protocol provides project managers with guidance on how to quantify the benefits of their mitigation projects, using a comprehensive, policy neutral approach. • The GHG Protocol for Cities (GPC) offers a framework that helps communities account for and report on their GHG emissions. • The Mitigation Goal Standard offers a way of assessing progress toward national and sub national greenhouse gas reduction goals. • The Policy and Action Standard provides a standardized approach for estimating the greenhouse gas effect of policies and actions.14
Carbon Disclosure Project (CDP) Organizations use the GHG Protocol to report their impacts to investors and other key stakeholders. A major tool for doing this is the Carbon Disclosure Project (CDP), which runs a global disclosure system used by both governmental and non-governmental organizations. Under the CDP, entities self-report their environmental data on carbon emissions, water use, supply chain impacts, and forest preservation. As a non-profit organization, the CDP has a broad reach, which in 2015 had: • Offices in and partnerships in 50 countries • Over 5,600 companies responding their climate change, water, forests and supply chain questionnaire • 533 cities disclosing environmental information through their system • 827 investors with US$100 trillion in assets requesting information on climate
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change, water or forests • 71 of the world’s states and regions measuring their environmental impacts • 89 members, with a combined purchasing power of over $2 trillion, gathering impact information throughout their supply chain15
Voluntary Carbon Standard (VCS) The Voluntary Carbon Standard (VCS) sets standards, assesses projects against those standards, and provides reporting guidance to ensure transparency in the voluntary market for carbon credits. In addition, VCS maintains a registry of projects that meet their standard. • Standard – the VCS standard provides a framework of rules and requirements for emissions reductions projects, along with detailed procedures when appropriate. • Verification – In addition to guiding project managers on project design and implementation, VCS also oversees independent auditors and verifiers. They also provide support to accreditation programs to support VCS credibility. • Accounting Methodology – VCS sets forth parameters for measuring, accounting for, and monitoring project impacts. • Registry – VCS maintains a database of projects that conform to their standard.16
GRI Reporting Framework Founded by CERES and the Tellus Institute in 1997, the Global Reporting Initiative (GRI) provides a framework for all organizations to report on a full range of impacts resulting from their operations. Developed with the support of the UN, GRI is closely linked to the UN Global Compact (UNGC) so users can easily use it when filing their related Communication of Progress (CoP) reports.17 With thousands of organizations reporting out of over 90 countries, GRI has become internationally recognized as the most widely used standard for disclosing sustainability performance. According the GRI, 92% of the world’s largest 250 corporations report on their sustainability performance and 74% of them use the tool to do so.18 An important aspect of the GRI system is placing sustainability performance in context of how the organization,19 “…contributes, or aims to contribute in the future, to the improvement or deterioration of economic, environmental or social conditions, developments and trends at the local, regional or global level. Reports should therefore seek to present performance in relation to broader concepts of sustainability.” One expert finds that GRI “largely fails to enforce” the context requirement, however. Mark W. McElroy asserts that the GRI allows reports to address sustainability components such as eco-efficiency or philanthropy, but not contextual sustainability performance. In this view, the context requirement means that levels of resources required for stakeholder wellbeing must be defined, their current status determined, and the organization’s impact addressed.20
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Sustainability Accounting Standards Board (SASB) SASB was founded in 2010 by its CEO Jean Rogers, an environmental engineer, management consultant and accountant, and was formulated in collaboration with the Harvard University Initiative for Responsible Investment. Its mission is to set “standards for corporate sustainability disclosure, with a view towards ensuring the disclosure is material, comparable, and decision-useful for investors.” The standards were developed because, “A new, standardized language is needed to articulate the material, non-financial risks and opportunities…that affect corporations’ ability to create long-term value [i.e., sustainability issues].”21 SASB has created industry-specific standards for 71 sectors within 10 industries. For example, the auto industry’s “disclosure topics and metrics” include: • Materials efficiency and recycling • Product safety • Labor relations • Fuel economy and use phase emissions • Materials sourcing Each topic area includes a description of how to improve sustainability performance as well as specific metrics a company should track and report on.
International Integrated Reporting Council (IIRC) The UK-based IIRC is a global coalition of sustainability reporting stakeholders focused on developing comprehensive reporting standards to advance sustainability performance. The IIRC system was specifically designed to “enhance accountability and stewardship for the broad base of capitals…and to support integrated thinking, decision-making, and actions.”22 They define six capitals as follows: • Financial Capital – the pool of funds available to an organization for use in the production of goods or the provision of services, as well as such things as stocks, bonds, and currency • Manufactured Capital – are available to an organization for use in the production of goods or the provision of services, including buildings, equipment, and infrastructure • Intellectual Capital – organizational, knowledge-based intangibles, which includes intellectual property, systems and procedures, and brand reputation • Human Capital – people’s competencies, capabilities and experience, and their motivations to innovate • Social and Relationship Capital – the institutions and relationships established within and between each community, group of stakeholders and other networks…to enhance individual and collective wellbeing • Natural Capital – all renewable and nonrenewable environmental stocks that provide goods and services that support the current and future prosperity of an organization23
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The goal of an “integrated report” is to explain “how an organization creates value over time considering that value is:24 • Influenced by the external environment • Created through relationships with stakeholders • Dependent on various resources
CERTIFICATIONS & LABELING Sustainability certifications and ecolabels recognize voluntary compliance with standards and norms, which may or may not be assessed by third-party organizations. They are designed for promotional purposes to assure potential customers that the products they purchase, or businesses they frequent, meet certain levels of sustainability performance. Some of the most commonly used are described below, although there are many instances of the misuse of terms like “sustainable” to describe a product or its value chain. In response, the US Federal Trade Commission issued legal guidelines for companies to prevent deception and unhelpful legal challenges.25
Environmental Product Declaration Environmental product declarations (EPDs) provide consumers with impact information on the products they purchase based on a full life cycle assessment (LCA). When third-party verified and registered, these declarations follow a set of defined product category rules (PCRs). Both ASTM and EPD International AB of Sweden certify EPDs conforming to either the ISO 14025 standard or, in the case of construction products, EU’s regional standard EN 15804.26 27
Enterprises B Corporation B Lab, a US-based NGO with global operations, certifies for-profit enterprises as B Corporations (B Corps) when they meet a minimum level of sustainability performance according to its 200-point scale. B Corp Certification is the only enterprise certification available to companies in any industry or geographic location. The certification process is adjusted according to the industry. B Lab also supports legislative efforts to create for-profit legal entities with an expanded purpose that goes beyond share value, generally called for-benefit incorporation. Such corporations must consider and balance the impact of other stakeholders when making decisions and report annually on their environmental and social performance. While Certified B Corps are not required to be structured as Benefit Corporations, those entities with such a structure fulfill the governance requirements for certification.28
Green Globe Green Globe is an international membership organization that provides sustainability performance certification for enterprises in the tourism industry. Certified enterprises are expected
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to comply with 39 performance standards, implement a sustainability management system, support local community development and employment, respect heritage/culture, and be environmentally responsible with purchases, energy, and water management.29
Supply Chain Fairtrade International (FLO) Established in 1997, Fairtrade International (FLO) is an association of three producer networks and 25 fair trade organizations that certify products via product-specific international standards. Certification of compliance is performed by an independently governed subsidiary. The standards are “designed to address the imbalance of power in trading relationships, unstable markets, and the injustices of conventional trade.”30 FLO standards, which apply to both producers and traders, address environmental, labor, ownership and trading practices. Certified products, ranging from coffee to gold, are labeled with the FAIRTRADE Mark, which has been achieved by over 27,000 products worldwide. In addition, the Fairtrade Climate Standard aims to help smallholders and rural communities to produce Fairtrade Carbon Credits and gain access to the carbon market. Consumer understanding of the meaning of fair trade certification is typically based on a general understanding that producers (farmers) receive better prices for their products. In addition to FLO’s FAIRTRADE program, consumers can also find nationally recognized and corporate ecolabels, using the Ecolabel Index. (See Additional Resources.)
Forest Stewardship Council (FSC) Founded in the US in 1996, the Forest Stewardship Council (FSC) has offices on all continents and is dedicated to promoting “environmentally appropriate, socially beneficial and economically viable management of the world’s forests.”31 It offers three types of certifications: • Forest management certification of forest managers or owners • “Chain of custody” product certification for manufacturers, processors and traders of forest materials • “Controlled wood” certification, confirming that in mixed-forestry products categories of wood considered unacceptable are not present. Forest management certification is guided by the FSC Principles & Criteria (P&C) that describe the essential elements of environmentally appropriate, socially beneficial, and economically viable forest management. Each of the 10 principles is supported by criteria that determine whether the principle has been met in practice. All principles must be applied before any product or entity can receive FSC certification. The P&C apply to all forest types and are applicable worldwide.
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Rainforest Alliance The Rainforest Alliance, founded in 1986, initially focused on addressing unsustainable rainforest practices. Early initiatives included providing financial incentives for forest preservation. Its current Sustainable Finance Initiative supports small enterprises with the investments necessary to improve the triple bottom line of their businesses.32 Its “Rainforest Alliance Certified” label on products verifies that ingredients are sourced from Rainforest Alliance certified farms or forests. Certified forests must: • Protect endangered species and areas of high conservation value • Set aside land as a forest reserve • Provide workers with a decent wage and protecting their ability to organize • Follow FSC harvesting guidelines (see above) • Respect the rights of local communities and indigenous people Certified farms must: • Maintain or increase tree cover • Conserve soil quality and prevent erosion • Reduce chemical use • Protect wildlife • Ensure the wellbeing of workers and their families Rainforest Alliance also certifies tourism businesses that: • Protect nearby ecosystems • Operate with wise use of natural resources • Mitigate climate change • Provide benefits to the social and cultural development of surrounding communities.
Marine Stewardship Council (MSC) The Marine Stewardship Council (MSC) is an international nonprofit NGO that was established to address the problem of unsustainable fishing. Its mission is to “transform the seafood market by recognising and rewarding sustainable fishing practices and influencing the choices people make when buying seafood.”33 MSC’s blue label identifies seafood from certified fisheries that ensure “fish are caught at levels that allow fish populations and the ecosystems on which they depend to remain healthy and productive for the future.”34
Organic Certifications USDA Organic certification is used by more than 31,000 enterprises, both in the US and other countries, to ensure access to the $43 billion organic agriculture market. According to the US Department of Agriculture’s National Organic Standards Board (NOSB):
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“Organic agriculture is an ecological production management system that promotes and enhances biodiversity, biological cycles and soil biological activity. It is based on minimal use of off-farm inputs and on management practices that restore, maintain and enhance ecological harmony.”35 The standards for organic farms and processors require them to: • Preserve natural resources and biodiversity • Support animal health and welfare • Provide access to the outdoors so that animals can exercise their natural behaviors • Only use approved materials • Do not use genetically modified ingredients • Receive annual onsite inspections • Separate organic food from non-organic food36 The EU Organic certification requires that producers adhere to the following principles: • Practice of land-related crop cultivation and livestock production • Practice sustainable exploitation of fisheries • Exclude the use of GMOs • Are based on risk assessment and the use of precautionary and preventive measures • Restrict the use of external inputs • Limit use of chemically synthesized inputs to exceptional cases37 The EU organic regulation also requires the name of the producer, processor, or distributor who last handled the item to be on the product label. Additionally, organic labeling requires “a strict control system with checks carried out at every stage of the organic chain.”38 Similar standards are offered by the NGO Bio Suisse,39 Korea,40 and Japan.41 Note that neither the US nor EU Organic certifications address social performance or specifically farmworker labor conditions/treatment.
Energy and Carbon
RELATED TOPICS
ENERGY STAR Created by the US EPA in 1992 following the Energy Policy Act (EPACT), ENERGY STAR is a voluntary program that promotes energy efficiency. Covering products, businesses, and buildings, their standards help consumers and institutions save money while protecting the environment.42
• Energy-related product (ErP) • Energy-use product (EuP) • Restriction of Hazardous Substances (RoHS) Directive
According to EPA tracking data, ENERGY STAR certified homes typically use 15-30% less energy than uncertified residences. ENERGY STAR commercial buildings and industrial plants are in the top 25% of comparable for energy efficiency.43
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ENERGY STAR rates thirty eight consumer products across seven product categories (appliances, heating/cooling, office equipment, building products, electronics, lighting and fans, and water heaters). Rated products for business and government include commercial foodservice equipment and commercial appliances.
European ENERGY STAR Following a series of agreements that initiated in 2000 between the EU and the US, Europe adopted a similar ENERGY STAR program. EU ENERGY STAR certification only pertains to five office equipment categories. Over 130 participants have registered about 20,000 product models, with the program. This program is part of the Energy Label system governed by the EU Energy Labelling Directive covers household appliances.
Compliance Carbon Credits By setting up an international emissions trading mechanism, the Kyoto Protocol spawned a commodities market for greenhouse gas emissions. As part of their strategy for meeting reduction targets, parties to the Protocol may purchase the ownership right to emissions reductions achieved by others. Certified by national governments, there are three types of compliance credits: • Removal Units (RMUs) represents one metric ton of GHG reduction through land use, land-use change and forestry (LULUCF) activities, such as reforestation • Certified Emission Reduction (CER) units qualify for emissions reductions that conform to the Clean Development Mechanism (CDM) • Emission Reduction Units (ERUs) meet the requirements of the Protocol’s Joint Implementation (JI) mechanism
Voluntary Carbon Credits Organizations and individuals with emissions reductions strategies often use the voluntary carbon markets to meet their targets. Several instruments can provide assurance that the credits meet muster. Traded in denominations of one metric tonne, the most reliable credits conform to the VCS (see above). Examples include: • Voluntary Carbon Unit (VCU) • Voluntary Carbon Standard (VCS) credit • Verified Emissions Reduction (VER) • Gold Standard VER (VGS) • Renewable Energy Certificate (REC)44 • Australian Carbon Credit Units (ACCUs)
Green-e The Center for Resource Solutions, a US NGO, focuses on market solutions to mitigate climate change and build a sustainable energy future.
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• Green-e Certified – This ecolabel covers renewable energy certificates (RECs) that focus specifically on projects that expand renewable capacity in the electric grid. • Green-e Climate – These carbon offsets help consumers and institutions in the retail market finance the creation of third-party verified projects.45 Organizations that partner with the Green-e program are granted the right to use the Green-e logo.
Manufactured Products Cradle to Cradle Certified Cradle to Cradle Certification is a for-profit certification process created by McDonough Braungart Design Chemistry. According to the C2C website: “The Cradle to Cradle Certified Product Standard guides designers and manufacturers through a continual improvement process that looks at a product through five quality categories — material health, material reutilization, renewable energy and carbon management, water stewardship, and social fairness. A product receives an achievement level in each category — Basic, Bronze, Silver, Gold, or Platinum — with the lowest achievement level representing the product’s overall mark.”46 The Cradle to Cradle Products Innovation Institute trains independent organizations to do product assessments for those seeking certification. The institute then reviews the assessments, and products deemed to meet the C2C requirements are licensed to use the “Cradle to Cradle Certified” word and design marks. Manufacturers must renew their product certification every two years by demonstrating “good faith efforts to improve their products.”47
EPEAT The US-based Green Electronics Council’s Electronics Product Environmental Assessment Tool (EPEAT) is a rating system for identifying high-performing, “environmentally preferable” electronics products.48 EPEAT criteria are based on ANSI-approved standards, and its registry requires ongoing, independent verification of manufacturer’s claims.49 EPEAT considers several categories of environmental attributes that cover the full life cycle of electronic products, including the overall environmental performance of the manufacturer. The EPEAT product registry is available in 43 countries, including China, India, Brazil, and most of Europe.50
Design for the Environment The US EPA manages the Design for the Environment (DfE) Safer Product Labeling Program and certification system for chemicals. DfE is focused on empowering consumers to “select safer, effective chemical products that do not sacrifice quality or performance.”51 The 2000plus certified products are allowed to use the “Safer Choice” product label, which includes a sub-certification that a product is fragrance-free. Standards conformity must be verified by a third-party using ISO certification procedures.
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Green Seal US-based Green Seal offers third-party certification to enterprises, products, or services that meet its sustainability leadership standards. The standards are based on life cycle research and are developed through a stakeholder engagement process emphasizing transparency. Green Seal was founded in 1989 and currently manages 31 standards that cover more than 375 product/service categories. At the enterprise level, Green Seal certifies and has a pilot certification for hotels and lodging properties, residential cleaning services, commercial and institutional cleaning services, and restaurants and food services. It is piloting a new sustainability standard for the life cycle of manufactured products.52
Built Environment Our “built environment” includes the buildings we live and work in, as well as a delivery infrastructure that transports us and the resources we need to survive. Highways, power lines, water and sewage, waste-handling systems are all critical to living in an interconnected world. There is global evidence of a transition toward a more sustainable built environment: • The percentage of building professionals focused on green building doubled from 2009 to 2013 and was expected to double again by 2016; the global average share of “green” work was 38%. • Lower operating costs as a driver of green design nearly doubled in importance from 2008-2012, while companies that occupy buildings are much more likely to cite employee health and productivity as an important driver.53 This progress has been driven, in part, by sustainable building ordinances54 and a variety of tax incentives.55 Furthermore, according to the US-based Sustainable Cities Institute, “comprehensive community planning represents the most effective tool available for the implementation of a green infrastructure network.”56 Yet, regulations seldom go far enough. The following standards and certifications provide a framework that can drive progress faster and more efficiently.
Green Buildings According to UNEP, buildings account for global consumption of about 40% of energy, 25% of water, and 40% of resources, while producing a third of all greenhouse gas emissions.”57
RELATED TOPICS • Negawatt
Green buildings that have reduced impacts relative to other buildings due to improved design and operating efficiencies. Trends in green buildings include striving to meet high standards for indoor air quality, as well as incorporating solar, wind, or other sustainable energy sources that allow building to be climate neutral. A net-zero building uses roughly the same amount of energy annually as is generated on site through renewable energy technologies. The World Green Building Council is a network of national building councils from every continent working to improve the impacts of buildings. The most common green building standards include:
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Australian Green Star The Australian Green Building Council (AGBC) manages the Australian Green Star system of green building assessment. It also conducts product certifications that support credits towards its building ratings, which include industry certifications. Building projects can gain recognition under four programs: • Green Star Communities – Precinct planning and development • Green Star Design & As Built – Building design, construction, and renovation • Green Star Interiors – Fit-out design and construction of interior spaces • Green Star Performance – Building operations and maintenance58 BREEAM First launched in 1990, the BREEAM assessment process is managed by the BRE Trust and its BRE Group. It was established in 2002 in the UK to “advance knowledge, innovation and communication for public benefit.”59 The system includes standards for communities (master planning), infrastructure, and buildings, and: “addresses a number of life cycle stages such as New Construction, Refurbishment and InUse. Globally there are more than 538,300 BREEAM certified developments, and almost 2,231,100 buildings registered for assessment. The core technical standards and processes of BREEAM promote best practice for all aspects of sustainable property development.60 Comprehensive Assessment System for Built Environment Efficiency (CASBEE) The Comprehensive Assessment System for Built Environment Efficiency (CASBEE) was established in Japan in 2001 by the Japanese Sustainable Building Consortium under the auspice of the Japan Ministry of Land, Infrastructure, Transport and Tourism. The CASBEE system was developed according to the following policies: 1. The system should be structured to award high assessments to superior buildings, thereby enhancing incentives to designers and others. 2. The assessment system should be as simple as possible. 3. The system should be applicable to buildings in a wide range of building types. 4. The system should take into consideration issues and problems peculiar to Japan and Asia. Corresponding to the building life cycle, CASBEE is composed of four assessment tools, CASBEE for Pre-design, CASBEE for New Construction, CASBEE for Existing Building and CASBEE for Renovation, and to serve at each stage of the design process. CASBEE for Cities is under development for worldwide use.61 Excellence in Design for Greater Efficiencies (EDGE) The Excellence in Design for Greater Efficiencies (EDGE) system was developed by the International Finance Corporation (IFC), a subsidiary of The World Bank that provides capital to international development projects. EDGE’s free software “empowers [builders] to determine the most cost-effective options for [their] building’s resource-efficient design”. Those projects that use at least 20% less energy, water, and embodied energy in materials than the baseline scenario, meet the EDGE standard. Both a design tool and certification system, EDGE helps building designers gain the best return on investment on projects in developing economies.62
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Leadership in Energy and Environmental Design (LEED) The Leadership in Energy & Environmental Design standards (LEED) are managed by the US Green Building Council (USGBC), founded in 1993. LEED is: “A green building certification program that recognizes best-in-class building strategies and practices. To receive LEED certification, building projects satisfy prerequisites and earn points to achieve different levels of certification. Prerequisites and credits differ for each rating system, and teams choose the best fit for their project.”63 LEED’s five certification categories are Building Design & Construction; Interior Design & Construction; Building Operations & Maintenance; Neighborhood Development; and Homes. Living Building Challenge The Living Building Challenge™ is an international program of the US-based International Living Future Institute (formed 2009), which also manages the Living Product Challenge and the Living Community Challenge. The Challenge was first developed in the mid-1990s and became a codified standard in 2005. According to the International Living Future Institute (ILFI), the Challenge (now in version 3.1) represents “the built environment’s most rigorous performance standard.”64 The Challenge pertains to the building’s performance during its first twelve months. The Challenge is based on twenty categories of performance that address global sustainability “imperatives” ranging from “limits to growth” to “just organizations” and “beauty and spirit.” Buildings are expected to achieve “Net Positive Energy,” “Net Positive Water,” and “Net Positive Waste,” meaning that the building and its site produce more water or energy than is consumed and turn waste into a beneficial resource through re-use.65 The ILFI currently offers the world’s only net-zero certification process, although the World Green Building Council is in the process of launching one as well.66 International Well Building Institute (IWBI) The International Well Building Institute (IWBI) is a for-profit, public benefit corporation in New York that in 2013 developed and now administers the Well Building Standard. The standard system includes Well Building Certification and a WELL Accredited Professional certification program. IWBI has committed to donating 51% of after-tax profits from Well Building fees to charitable contributions.67 The WELL standard was developed by: “integrating scientific and medical research and literature on environmental health, behavioral factors, health outcomes and demographic risk factors that affect health with leading practices in building design and management.” The standard requires buildings to achieve sufficient performance in seven categories, including air, water, nourishment, fitness, light, comfort, and mind. The Comfort performance areas, for example, include: • Americans with Disabilities Act (ADA) Accessible Design • Visual and Physical Ergonomics • Noise and sound, including exterior noise intrusion, internally generated noise, sound masking, sound barriers, and sound-reducing surfaces
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• Thermal comfort and individual and radiant thermal control • Olfactory comfort • Reverberation time
Sustainable Infrastructure The Institute for Sustainable Infrastructure (ISI) is a US-based nonprofit “hub” for organizations and individuals involved in infrastructure planning, design, construction and maintenance. It was founded and is overseen by the American Public Works Association, and American Society of Civil Engineers, and the American Council of Engineering Companies.68 ISI created the Envision system to “develop and maintain a sustainability rating system for all civil infrastructure.” Envision includes individual credentialing, project verification and awards. The comprehensive Envision project rating system uses 60 sustainability criteria organized into five categories—Quality of Life, Leadership, Resource Allocation, Natural World, and Climate and Risk. The project’s goal is to help project designers “do the right project” as well as do the project right, including with strong stakeholder relationships and analysis of the entire project life cycle.
SCORECARDS Sustainability scorecards, developed by third-party entities, provide information to consumers and businesses to help guide their purchasing decisions. The raters gather information from companies about their policies and practices and then rank their relative performance to others in their class or against an ideal. Two examples, provided below, include the Dow Jones Sustainability Index (DJSI) and FTSE4Good for investors, and the GoodGuide for consumer products.
Investments Socially Responsible Investing (SRI) According to the Forum for Sustainable and Responsible Investment, “Sustainable, responsible and impact investing (SRI) is an investment discipline that considers environmental, social and corporate governance (ESG) criteria to generate long-term competitive financial returns and positive societal impact.”69 Though rapid growth in socially responsible investing (SRI) (also called “social impact investing”) has resulted in more than one out of every six dollars under professional management in the US in 2014 was invested “according to SRI strategies,”70 for most public companies the SRI component has not yet reached critical mass such that the company risks capital access because of poor ESG performance. However, SRI investors can enhance their impact on management through non-binding shareholder resolutions. Typical US resolutions have focused on political spending, executive compensation, sustainability reporting, hydraulic fracturing, and sexual-orientation non-discrimination.71
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Supporting private-sector SRI investing is the Principles for Responsible Investment Initiative (PRI) launched in 2006 in partnership with UNEP. The Principles were “developed by investors, for investors” and have gained over 1,500 signatories from 50+ countries.72
Dow Jones Sustainability Index Since 1999, the US-based Dow Jones Stock Exchange has partnered with RobecoSAM to produce the Dow Jones Sustainability Index (DJSI) of public companies. This highly regarded scorecard rates the sustainability performance of the largest 2,500 companies on the Dow Jones Global Total Stock Market Index.73 Approximately half of the questions are tailored specifically to the industry of the reporting organization.74
FTSE4Good Launched in 2011, in collaboration between Ethical Investment Research Services (EIRIS) and FTSE Russell, FTSE4Good (UK) has five international ethical investment indices with 2,300 publicly held companies. As with DJSI, FTSE4Good collects self-reported data and rates companies based on their ESG risk and performance. Criteria considered fall into six broad categories—environmental management, climate change, human and labor rights (both direct and in the supply chain), and corporate governance and bribery.75
Consumer Goods GoodGuide GoodGuide is a product scorecard that consumers can use to differentiate between options when making purchases. Their ratings provide information about the environmental and human health aspects of product ingredients. The goal of this scorecard is to compel retailers and manufacturers to make and sell better products. Using information provided by the manufacturer and authoritative scientific resources GoodGuide rates product ingredients and then evaluates the level of concern posed by the product. The resulting score—ranging from zero (worst products) to ten (best products)—helps consumers make a quick assessment of how a given product performs.76 Excernatur ra nimusae reperis aut laccum rempelit ea ipis posapidus, utest arciunt erum re vidusciis dis mos nos autatur, sandand itiunt fuga. Et experiantis sus dolorest quam eostrup tatibus ende voloreiur resequi consed modia cus, te pa ipit vidis dusandis arumquia quatiurit, con nonse corrore ptatem dictatem erspersperro endaeriati officte sitat ut aut volest, nonseque es apere et odiorep erchil molora cum volesequias maio. Aboreium aut amust millaut alit voluptiorrum nobitius cum rem quia nemolore estorerfero bea sapel et eostrum quam, iderum volupta erspic tem rerro tempore occum aut aribusda sequam conse venis vera nam hiciam aut volor remporrum audit ut hil excea si videssere volupta sperist runtiist, officia comnihi tasitas itibus excepudae at faccus autam ium quae. Untia nonserrum, offic te pos voluptius eum faccatius quaesciet ut voluptam doluptate conseceperat vel idunt elles autatquos nobis aut aut eum nihicip santibus si rae volorib uscit, sa volut magnat aligendebis pro veliquas quos magni assimol orrorru nduntiore, ommossunt rehenistias minveli ctotat.
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ADDITIONAL RESOURCES • The Equal Exchange website provides numerous articles and other resources on the Fair Trade and cooperatives movement, including the Equal Exchange / Babson College curriculum: http://equalexchange.coop/resources. • The Whole Building Design Guide provides resources regarding the 600+ (and growing) green product certifications in the world: https://www.wbdg.org/resources/gbs.php • B Lab’s Certified B Corporation process: http://www.bcorporation.net • Global Buildings Performance Network, “Defining Positive Energy – A Spectrum Approach”: http://www.gbpn.org/positive-energy-buildings/defining-positive-energy-%E2%80%93-spectrum-approach • ISEAL Alliance Good Practice Guide: http://www.isealalliance.org/sites/default/files/ISEAL_Claims_Good_Practice_Guide_v1_FINAL.pdf • The Ecolabel Index, maintained by the for-profit enterprise Big Room, tracks eco-labels worldwide and by country. Database of responsible ecolabels: Ecolabel Index (http://www. ecolabelindex.com/) • GoodGuide (http://www.goodguide.com/) website for consumers about the sustainability performance of consumer products. • Portfolio 21: http://trilliummutualfunds.com/portfolio21-global-equity-fund/ • Domini: http://www.domini.com/
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Chapter Nine Endnotes 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32.
Consumer Reports, “End the confusion over the term ‘natural’ on food labels: Consumer Reports calls for a ban on this misleading word,” Oct. 2014: http://www.consumerreports.org/cro/news/2014/07/end-the-confusion-over-the-term-natural-on-food-labels/index.htm European Commission, “Misleading Green Claims – Extract of the Guidance for the implementation/application of Directive 2005/29/EC on unfair commercial practices”: http://ec.europa.eu/environment/eussd/pdf/ green_claims/en.pdf ISO: http://www.iso.org/iso/home.html Ibid. ISEAL Alliance, “About Us”: http://www.isealalliance.org/about-us ISEAL Alliance, “Challenge the Label”: http://www.isealalliance.org/challenge Ibid. GISR: http://ratesustainability.org/ GISR “Principles”: http://ratesustainability.org/core/principles/ Ibid. GISR, “Sustainability Principles Comparison – GISR & Precursor Frameworks”: http://ratesustainability.org/ wp-content/uploads/2013/10/GISR-Principles-Map.pdf Social Accountability International, “Social Accountability 8000 International Standard,” 2004: http:// sa-intl.org/_data/n_0001/resources/live/SA8000%20Standard%202014.pdf Ibid. Greenhouse Gas Protocol, “Standards”: www.ghgprotocol.org/standards CDP, “About Us” : https://www.cdp.net/en/info/about-us Voluntary Carbon Standard, “What We Do”: http://www.v-c-s.org/about-vcs/what-we-do/ Global Reporting Initiative, “Making the Connection: Using the GRI G4 Guidelines to Communicate Progress on the UN Global Compact Principles”: https://www.globalreporting.org/resourcelibrary/UNGC-G4-linkage-publication.pdf Global Reporting Initiative “GRI and Sustainability Reporting”: https://www.globalreporting.org/information/sustainability-reporting/Pages/gri-standards.aspx Ibid. Mark W. McElroy, “Sustainability Context: What Is It?”, Sustainable Brands, 18 July 2011: http://www. sustainablebrands.com/news_and_views/articles/sustainability-context-what-is-it SASB: www.sasb.org and https://navigator.sasb.org/ IIRC website, “The International Framework,” 2013: http://integratedreporting.org/wp-content/uploads/2015/03/13-12-08-THE-INTERNATIONAL-IR-FRAMEWORK-2-1.pdf IIRC, “Capitals: Background Paper For ”: http://integratedreporting.org/wp-content/uploads/2013/03/ IR-Background-Paper-Capitals.pdf Ibid. US Federal Trade Commission webpage, “Environmental Claims: Summary of the Green Guides”: https:// www.ftc.gov/system/files/documents/public_events/975753/ftc_-_environmental_claims_summary_of_the_ green_guides.pdf ASTM, “Environmental Procuct Declarations”: http://www.astm.org/CERTIFICATION/filtrexx40.cgi?P+PROG+7+cert_detail.frm EPD International AB, “About the International EPD® System”: http://www.environdec.com/en/The-International-EPD-System/ Benefit Corporation, “What is a Benefit Corporation?”: http://benefitcorp.net/ Green Globe, “Standard Criteria and Indicators”: http://greenglobe.com/standard/ FLO, “What is Fair Trade?”: http://www.fairtrade.net/about-fairtrade/what-is-fairtrade.html FSC: www.fsc.org Rainforest Alliance: www.rainforest-alliance.org
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33. Marine Stewardship Council: https://www.msc.org/ 34. Ibid. 35. USDA, National Agricultural Library “Organic Production/Organic Food: Information Access Tools”: https://www.nal.usda.gov/afsic/organic-productionorganic-food-information-access-tools 36. Harvest Market Natural Foods: http://www.harvestmarketnaturalfoods.com/what-is-organic/ 37. European Commission, “Council regulation (EC) No 834/2007,” 8 June 2007: http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32007R0834&from=EN 38. Ibid. 39. Bio Suisse, “About Us”: http://www.bio-suisse.ch/en/aboutus.php 40. Statutes of the Republic of Korea, “Act On The Promotion Of Environment-Friendly Agriculture And Fisheries And The Management Of And Support For Organic Foods, Etc.”: http://elaw.klri.re.kr/eng_service/lawView.do?hseq=33028&lang=ENG 41. Japanese Ministry of Agriculture, Forestry and Fisheries, “Organic JAS Standards and Technical Criteria”: http://www.maff.go.jp/e/jas/specific/criteria_o.html 42. US EPA ENERGY STAR: www.energystar.gov 43. Ibid. 44. Voluntary Carbon Standard, “What We Do”: http://www.v-c-s.org/about-vcs/what-we-do/ 45. Green-e “Find Green-e Certified”: http://www.green-e.org/gogreene.shtml 46. Cradle to Cradle Products Innovation Institute: www.c2ccertified.org 47. Ibid. 48. EPEAT: www.epeat.org 49. Ibid. 50. EPEAT, “Countries/regions currently included in the EPEAT system”: http://www.epeat.net/about-epeat/ global-reach/ 51. US EPA, “Learn About the Safer Choice Label”: https://www.epa.gov/saferchoice/learn-about-safer-choicelabel 52. Green Seal: www.greenseal.org 53. McGraw Hill Construction, US Green Building Council and World Green Building Council, “World Green Building Trends”, 2013: http://www.worldgbc.org/files/8613/6295/6420/World_Green_Building_Trends_ SmartMarket_Report_2013.pdf 54. Sustainable Cities Institute of the National League of Cities website, “Model Ordinance: Sustainable Building”: http://www.sustainablecitiesinstitute.org/topics/buildings-and-energy/building-ordinances/model-ordinance-sustainable-building 55. American Institute of Architects, “State and Local Green Building Incentives”: http://www.aia.org/aiaucmp/ groups/aia/documents/pdf/aias076936.pdf 56. Sustainable Cities Institute of the National League of Cities website, “Green Infrastructure 101”: http:// www.sustainablecitiesinstitute.org/topics/water-and-green-infrastructure/green-infrastructure-101 57. UNEP Sustainable Buildings and Climate Initiative website, “Why Buildings”: http://www.unep.org/sbci/ AboutSBCI/Background.asp 58. Green Building Council of Australia, “Green Star: Rating System”: http://new.gbca.org.au/green-star/rating-system/ 59. BREEAM, “News From BRE”: http://www.breeam.com/newsdetails.jsp?id=1041 60. BREEAM, “What is BREEAM”: www.breeam.com 61. CASBEE: http://www.ibec.or.jp/CASBEE/english/index.htm 62. EDGE: https://www.edgebuildings.com/about/edge-ifc/ 63. US Green Building Council: www.usgbc.org 64. International Living Future Institute: www.living-future.org 65. Ibid. 66. Environmental Leader, “‘Net Zero’ Green Building Certification Coming Soon”: http://www.environmentalleader.com/2016/07/12/net-zero-green-building-certification-coming-soon/
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67. IWBI, “The WELL Building Standard”: https://www.wellcertified.com/sites/default/files/resources/WELL%20 Building%20Standard%20-%20Oct%202014.pdf 68. ISI: www.sustainableinfrastructure.org 69. Forum for Sustainable and Responsible Investment, “SRI Basics”: http://www.ussif.org/sribasics 70. Ibid. 71. Forum for Sustainable and Responsible Investment,“Shareholder Resolutions: http://www.ussif.org/resolutions 72. PRI, “About the PRI”: https://www.unpri.org/about 73. RobecoSAM, “Methodology”: http://yearbook.robecosam.com/methodology.html 74. RobecoSAM, “CSA Guide – RobecoSAM’s Corporate Sustainability Assessment Methodology,” 2016: http://www.sustainability-indices.com/images/corporate-sustainability-assessment-methodology-guidebook. pdf 75. FTSE Russell, “FTSE4Good Index Series”: http://www.ftse.com/products/indices/FTSE4Good 76. GoodGuide, “Ratings”: http://www.goodguide.com/about/ratings
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CHAPTER TEN Technology, Tools, and Innovations Chapter Table of Contents Purpose. . ............................................................................................................................... 168 Overview.............................................................................................................................. 168 Technologies and Innovations.................................................................................................. 168 Energy and Carbon..................................................................................................... 168 Energy Efficiency................................................................................................ 168 Renewable Energy............................................................................................... 169 Carbon Capture and Sequestration.. ....................................................................... 170 Water....................................................................................................................... 170 Desalination....................................................................................................... 170 Water Efficiency................................................................................................. 171 Materials and Waste................................................................................................... 172 Reduced Toxicity................................................................................................ 172 Reuse................................................................................................................ 173 Recycling........................................................................................................... 173 Waste to Energy Systems...................................................................................... 174 Product Design.......................................................................................................... 174 Nanomaterials.................................................................................................... 174 Dematerialization and Transmaterialization. . ........................................................... 174 Lean Manufacturing . . ........................................................................................... 175 Biomimicry.. ....................................................................................................... 175 Land and Ecosystem Management................................................................................. 176 Permaculture...................................................................................................... 176 Biodynamic Agriculture....................................................................................... 177 Bioremediation................................................................................................... 177 Tools and Techniques. . ............................................................................................................ 177 Implementation Systems.. ............................................................................................ 177 ISO 14001. . ........................................................................................................ 177 ABCD Planning Method...................................................................................... 178 VISIS................................................................................................................ 179 Balanced Scorecard............................................................................................. 180 Assessments & Measurement . . ...................................................................................... 180 Indicators . . ........................................................................................................ 180 Millennium Ecosystem Assessment.. ....................................................................... 181 Future Fit Business Benchmark (F2B2)................................................................... 181 S-CORE.. ........................................................................................................... 181 Life-Cycle Assessment (LCA)............................................................................... 182 Life-Cycle Costing (LCC).................................................................................... 182 Return-on-investment. . ........................................................................................ 183 Case Studies ......................................................................................................................... 183 Additional Resources.............................................................................................................. 185 Chapter Ten Endnotes.. ...................................................................................................... 186
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PURPOSE As the field of sustainability matures, there are more and more available tools, technologies, and resources to help professionals implement relevant practices and initiatives. While it is not necessary to become a skilled practitioner of every tool, a professional needs to understand their uses and applications to determine when each might be appropriate and how to work with skilled technicians to implement them.
OVERVIEW The sustainability professional needs a variety of tools and techniques to successfully handle a range of sustainability challenges. This chapter will touch upon the sustainability tools and technologies enterprises generally employ. The chapter highlights sustainable performance technologies, selected initiatives, and tools for analyzing and implementing initiatives.
TECHNOLOGIES AND INNOVATIONS Energy and Carbon To address climate change and mitigate its causes, society must convert to sustainable energy—i.e., practicing energy efficiency and deriving power from clean, renewable sources. In addition, removing heat trapping gases from the atmosphere may serve to reduce the greenhouse effect that causes temperatures to rise.
Energy Efficiency The abstract concept of “energy” is a property in objects that can be shifted to other objects. It is motion or the potential for motion. While performing this so-called “work,” the ratio of useful energy to total energy expended describes its efficiency. Energy efficiency initiatives target the reduction of wasted energy—getting more services from the energy produced. Productivity is a measure of resource efficiency—energy, materials, labor, etc.—used in creating a manufactured product or service. System inefficiencies underlying all human activity adversely affect society’s ability to be productive, yet energy inefficiency has a particularly significant impact. For example, consider what the International Energy Agency (IEA) refers to as electricity consumed by devices in “ready and waiting” mode. Globally, network-enabled devices consumed 616 terawatts (tWh) of electricity—more than Canada’s entire electrical consumption—the vast majority of which goes to powering them in standby mode. At the current rate, these devices will draw nearly double their current amount, reaching about six percent of global consumption by 2025. With up to 80 percent of their consumption going to maintain a network connection this “vampire power” or “phantom power” is extremely inefficient.1 Centralized electricity systems based on coal-fired power plants are also inefficient. Energy losses occur during extraction of the coal, during combustion, and across power lines—resulting in only one tenth of the coal’s original energy making it to an electrical outlet.2 Enormous opportunities exist for making energy systems more efficient, including at the point of consumption within the enterprise. LED lighting, for example, can provide illumination
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using about one sixth of the energy of incandescent bulbs (which expend 90% of their energy use as heat and only 10% as light). Similar, though less dramatic, advances have occurred with vehicle engines, HVAC systems, industrial production systems, and office machinery. Whole-system approaches to energy savings typically have a higher return on investment than piecemeal approaches. Systemic approaches, such as lightweighting (especially for vehicles) or reducing friction of materials being moved (such as with bigger pipes instead of bigger pumps) can reap large savings.3 The US Energy Star program, for example, provides a starter checklist of rapid payback energy efficiency investments, including operations and maintenance, lighting, office and food service equipment, and heating/cooling (HVAC).4 The Southeast Energy Efficiency Alliance found that energy efficiency investments in the Southeast US 2010-2013 achieved an average of 387% return-on-investment.5 Likewise, a study of efficiency investments in developing countries has confirmed that high returns on investment are typical (less than three years payback).6 In short, correcting energy inefficiencies can be one of the most cost-effective climate mitigation strategies. After all, a “negawatt” (a unit of energy that doesn’t get used) is free.
Renewable Energy Defined as energy from sources that renew themselves at a rate equal to or greater than that at which they are consumed, renewable energy offers promise in helping us live within Earth’s carrying capacity. Examples of renewable energy technologies include: • Solar – Photovoltaic and Solar Thermal • Wind – Land and offshore Turbines • Water – Hydroelectric and Tidal • Biofuels – Ethanol and Biodiesel • Geothermal – Deep well and Heat Pump (an energy efficiency technology) Because of the potential for rapid deployment, some advocate turning to nuclear power as a way to mitigate the effects of climate change.7 According to the Union of Concerned Scientists, while nuclear power emits very little carbon throughout its lifecycle, it “faces substantial economic challenges, and carries significant human health and environmental risks.” Consequently, incorporating nuclear into a nation’s energy portfolio requires enacting strong safety and security measures.8 From a resource perspective, nuclear could, conceivably, be considered sustainable. Though one of Earth’s least plentiful elements, it takes only one pound of uranium to produce the power generated by three million pounds of coal. Yet, on the back end, after the nuclear fission process is complete, the neutrons left behind decay to half their radioactive level in 4.5 billion years.9 During this time, society must safely store the waste. As witnessed in Fukushima, Japan, in 2011, the repercussions of an accident can be devastating.10 Sustainable energy, therefore, can be considered energy derived from renewable, non-carbon sources that can, both readily and safely, be absorbed by the ecosystem. This type of energy supports resiliency, employment, security, and better air and water.11
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Renewable energy sources, particularly from solar and wind, have seen dramatic decreases in cost, making them competitive with fossil fuels in the 21st century, though the dramatic drop in the cost of fossil fuels since 2008 has slowed this trend. Renewable technologies that can power vehicles—biofuels, batteries, and hydrogen, for example— have not yet achieved cost competitiveness with petroleum. From a cost-effectiveness perspective, energy efficiency has been the hands-down winner for enterprises for the last few decades. But the new competitiveness of sustainable power is disrupting utility business models. This has been facilitated in part by new financial structures, such as solar gardens, which benefit from economies of scale and allow business ownership of off-site solar electricity production.12 When combined with increasing commitments by governments to address climate change (e.g., California’s new climate change goals), there are ever increasing opportunities for enterprises to switch to sustainable energy.13
Carbon Capture and Sequestration As the fourth most abundant element in the universe, carbon comprises much of the Earth— stored mostly in rocks but also in the ocean, atmosphere, and living organisms. In nature, carbon dioxide (CO2) is produced through cellular respiration by animals, plants, and bacteria. Plants also convert CO2 into energy rich organic molecules through the process of photosynthesis, absorbing and “sequestering” more than they produce.14 Carbon capture and sequestration (CCS) is a technology that attempts to replicate the natural process of plants. Employing a geoengineering approach known as carbon dioxide removal (CDR), or carbon engineering, it attempts to counteract the greenhouse effect and ocean acidification by removing CO2 from the atmosphere. Some CCS projects have encountered technical challenges that have made their cost-effectiveness highly uncertain.15 However, other CDR technologies, such as afforestation (planting trees) and biochar or terra preta (tilling charcoal into the soil) have shown promise. Another geoengineering approach, solar radiation management (SRM) would employ mirrors to reflect the sun’s energy back into space, thus offsetting temperature increases caused by the greenhouse effect. These more difficult solar engineering techniques contemplate using albedo enhancement, space reflectors, and stratospheric aerosols. These proposals remain highly controversial because of the unknown, and potentially irreversible, side effects. Many scientists believe these options should be developed in case other options fail but used only as a last resort.
Water Desalination The approximately 15,000 desalination plants worldwide remove salt and pollutants from ocean water, adding relatively expensive water to freshwater supplies. According to Sandra Postel, director of Global Water Policy Project: “Desalination is indeed a viable water supply option . . . . The energy required to desalinate seawater has fallen by 60-80% over the last two decades. Nevertheless, the process remains energy intensive, expensive and potentially harmful to coastal marine environ-
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ments. While it provides a lifeline for some island nations and desert regions, desalination is no silver bullet for solving the world’s water problems.”16
Water Efficiency
RELATED TOPICS
Water efficiency investments by enterprises and • Low Impact Development (LID) governments can have at least four positive effects: reducing ongoing costs for water supply, wastewater treatment, and energy used to heat water, as well as helping the water utility avoid the expense and other negative impacts of developing new water resources. For example, use of recycled water instead of groundwater for a cogeneration electrical plant in Australia saved the company and estimated $2 million per year and the community an estimated $1 million per year.17 The Indian state of Andhra Pradesh organized village-level farmer groups to monitor water resources and develop water budgets for crop production. The net value of farm outputs has nearly doubled, partly from substitution of less water-intensive crops and more efficient irrigation.18 Like energy, water efficiency technologies have long been cost-competitive for enterprises and subject to similar underinvestment patterns because of up-front capital costs and other barriers. Enterprises typically pay for water use/management in three ways: 1. purchase of potable water 2. disposal of waste water via sanitary sewage systems 3. stormwater management costs – typically calculated by area of impermeable surfaces on-site (e.g. parking lots) Water efficient technologies reduce the first two types of cost while technologies that minimize the need for stormwater management (e.g. parking lot treatment swales) or strategies that minimize the need for parking lots (locations with strong transit or bike/pedestrian access) can reduce stormwater expenses. Water use and energy use have a strong nexus – water efficiencies (especially of heated water) create energy efficiency both at the point of consumption and throughout the utility’s water delivery system. (Energy efficiency and/or fuel switching can dramatically reduce utility consumptive use of water to cool power plants). Like energy systems, water systems can hold down costs for consumers if demand growth is limited by efficiency investments. This is because for a typical utility, each new source of power or water is more expensive than existing sources, which means that new sources necessarily raise the average price for all customers.19 Therefore, water and energy efficiency investments are a community benefit that helps keep utility prices cost-competitive for the entire region and for the enterprise’s utility bills in the long-term. For example, a study of a Colorado water utility’s efficiency program found that “a 21 percent reduction in average per capita water demand experienced over 30 years helped lessen water rate increases by 99 percent and wastewater rate increases by 18 percent.”20
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Materials and Waste
RELATED TOPICS
Intricately connected with energy and water issues are mate• Downcycle rials use and waste. What materials are selected and how they are used is critical to living within the Earth’s carrying capacity. • Pollution Prevention (P2) Furthermore, it is also critical to consider how materials are dis• Upcycle posed of after use—downstream from production is also critical. • Zero Waste Plastics dumped in the ocean become trapped in subtropical 21 gyres —a high pressure zone formed by global wind patterns and the Earth’s rotation.22 Spent neutrons from harnessing the nuclear fission process persist for millennia. Additionally, e-waste leaches toxic heavy metals into the local ecosystem. These three examples demonstrate the implications of the second law of thermodynamics: there is no “away” place to throw things! Multiple technologies, innovations, and approaches can help, such as avoiding the use of toxic materials, generating less waste, and responsibly managing materials at the end of their useful lives. Manufacturers and consumers alike must follow the Precautionary Principle and, when considering materials and waste management, following the rule of thumb to “Reduce, Reuse, Recycle,” (known as the 3Rs) is key to reaching sustainability goals.
Reduced Toxicity
RELATED TOPICS
Human creativity has produced amazing non-nat• Stockholm Convention on POPs ural materials that enhance quality of life through their flexibility, durability, and low-cost, but— partly due to their design—do not biodegrade. In addition, there are many naturally occurring materials that humans have extracted from the earth to create beneficial products. However, many of these natural and human-made substances disperse and accumulate in nature, causing loss of ecosystem and human health. The presence of volatile organic compounds (VOCs), persistent organic pollutants (POPs), and heavy metals throughout ecosystems pose significant health risks. Exposure to the hazardous chemicals and toxic substances can cause skin irritation, reduce lung function, and increase the chance of developing asthma. Once flushed down the drain, they work their way through the ecosystem and contribute to algal bloom formation. Such events clog the waterways, squeeze out important native plant species, and threaten wildlife populations.23 Less toxic materials, including increasing use of bio-based raw materials (e.g. plants instead of fossil fuels as the basis for plastics), are under development by chemical companies worldwide. As with biofuels, these technologies require life cycle thinking to ensure they improve sustainability performance, especially because of the potential for ecological destruction as bio-resources become popular in global markets (e.g., palm oil).24 In addition to chemicals, other advanced materials can create ecosystem challenges, Microbeads, developed by the Norwegian Dr. John Ugelstad and patented in 1972, have become practically ubiquitous in beauty and personal care products. Ranging from 0.5 to 500 micrometers in diameter—microbeads are neither biodegradable nor large enough for most water treatment facilities to remove. (As a point of reference, the average human hair measures 100 micrometers across.) Resembling fish eggs, any organism living in the water can easily mistake them for
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food—with the risk that they accumulate in the food chain.25 Responsible management of electronic waste, also referred to as “e-waste” is another critical sustainability issue. Containing a mixture of both precious and hazardous materials recycling these devices is at once lucrative and dangerous. Thus, properly disposing of electronics through a responsible recycling program is vital. Three important considerations in disposal of e-waste are: • The value of components – one ton of used cell phones (about 6,000 phones) yields $15,000 in precious metals. • The toxicity of components – if not deconstructed properly, the recyclers jeopardize the health of their workers. • The recyclability of components – metals are not the only part of the devices that can be recycled; as much as 99 percent of the materials in electronic components can be reused in other equipment. Plastic components, for example, are at the right grade to get remolded.26
Reuse Industrial ecology and circular economy models provide guidance to responsible management of society’s waste streams. In cradle-to-cradle thinking, individuals and organizations reuse materials, by upcycling them—converting materials into something of similar or greater value. The ability to continually reuse the component parts is limited, however, due to the second law of thermodynamics, or entropy. Therefore, many times, reuse entails downcycling the materials into products of lower quality.
Recycling Waste-handling technologies have been under development that would simplify municipal solid waste (MSW) recycling processes. These “single-stream,” “fully commingled,” or “single-sort” systems sort, sift, apply magnets, and spin waste to separate recyclable materials from one another. For those sorting manually, paper, glass and metals are easily identified by their respective materials. Plastics, however, can only be identified by their resin codes. These plastic recycling codes found world-wide were developed by the Society of the Plastics Industry (SPI) and are explained below: #1 PET / PETE – polyethylene terephthalate used to make soda bottles, beverage bottles, and food containers. #2 HDPE – high density polyethylene used to make milk bottles, beverage bottles, and food containers, detergent bottles, grocery, trash, and retail bags. #3 PVC – polyvinyl chloride (PVC or vinyl) used to make food and non-food packaging, medical tubing, siding, window frames, floor tiles, and carpet backing. #4 DLPE – low-density polyethylene used to make bread & frozen food bags, squeezable bottles, shrink wrap, and dry-cleaning bags. #5 PP – polypropylene used to make yogurt containers, plastic lids, and food and medicine bottles.
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#6 PS – polystyrene used to make plastic foam products, such as cups, plates, cutlery, compact disc jackets, and egg cartons. #7 Other – often polycarbonate used to make reusable water bottles and beverage and food containers. These plastics have the lowest recycling potential and are often fabricated from a mixture of the above plastic numbers. #8 Some MSW programs provide curbside recycling of compostable foodstuffs, which are occasionally assigned a recycling code of “0.” Even without this option, practicing composting is an important way to reuse the nutrients of food and food byproducts.
Waste to Energy Systems Waste that does make it all the way to the landfill does not necessarily require burying. Many jurisdictions have incorporated waste-to-energy incineration technologies as part of their renewable energy portfolios. Alternatively, capturing methane, a biogas that results from anaerobic decay (which takes place in the absence of oxygen), is a promising technology. This latter approach is sensitive to inputs so the waste collection systems of a region must be tuned to deliver the right recipe.27
Product Design Designing products with the end in mind offers additional opportunities for reducing the impact of waste.
Nanomaterials The US National Institute of Environmental Health Sciences (NIEHS) defines nanotechnology as “the art and science of manipulating matter at the nanoscale (down to 1/100,000 of the width of a human hair) to create unique materials and products.”28 The production of materials to this scale promises to make further dematerialization gains but with unknown and potentially serious environmental or human health impacts. According to NIEHS: “The unique properties that make engineered nanomaterials (ENMs) useful in the marketplace, also raises concerns about how they may act in the body. Currently little is known about the potential health effects of human exposure to these materials.”29
Dematerialization and Transmaterialization Efforts to reduce sending resources to the landfill must go beyond recycling. Responsible stewardship of resources needs to begin before products are created. Dematerialization and lightweighting are close cousins toward the goal of doing more with less. The sustainability impacts of an aluminum beverage can, for example, are substantially reduced by thinner walls; they are further reduced by the use of recycled aluminum, which reduces the energy required to manufacture a can by about 95%. Another innovation that supports the move toward dematerialization is transmaterialization—a way of thinking of products as services, rather than material goods. This approach sees services as solutions that fulfill needs and desires, with or without a physical product. Effective service strategies focus on the goal of going beyond satisfying the needs of the organization
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to providing customer value—in the form of price, performance, emotions, cultural value, or meaning.30
Lean Manufacturing Lean “thinking” and manufacturing systems are designed to minimize waste throughout the value chain of a manufactured product. According to the Lean Enterprise Institute, the “Principles of Lean” are: 1. Specify value from the standpoint of the end customer by product family. 2. Identify all the steps in the value stream for each product family, eliminating whenever possible those steps that do not create value. 3. Make the value-creating steps occur in right sequence so the product will flow smoothly toward the customers. 4. As flow is introduced, let customers pull value from the next upstream activity. 5. As value is specified, value streams are identified, wasted steps are removed, and flow and pull are introduced, begin the process again and continue it until a state of perfection is reached in which perfect value is created with no waste.31 For example, lean manufacturing reduces waste by setting up the supply system to produce only components for products when customer demand is proven to be sufficient, rather than estimating how many products might be demanded over a period of time and then making and storing the components until the demand materializes. The Institute’s resources include a recommended system for implementation – the Lean Action Plan, which is based on four phases: • Getting Started • Creating an organization to Channel Your Value Streams • Install Business Systems to Encourage Lean Thinking • Completing the Transformation32 One manufacturing business manager described lean systems as processes designed to eliminate or minimize waste in seven categories called the “seven deadly sins” of wasteful manufacturing: Defects, Overproduction, Transportation, Waiting, Excess Inventory, Unnecessary Movement, and Over-Processing.33 Six Sigma is a quantitative process often used in the context of lean manufacturing. Developed in 1995, it is used for measuring the quality of processes in order to understand process flaws and improve performance towards the goal of no more than 3.4 defects per million opportunities. The methodology includes varying approaches for improving existing systems or developing new ones.34
Biomimicry The concept of biomimicry was popularized by biologist Janine Benyus through her 1997 book Biomimicry: Innovation Inspired by Nature, which focused on biomimicry research that was contributing to sustainability solutions. Benyus founded and leads a nonprofit institute,
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Biomimicry 3.8, which provides resources and consulting assistance to organizations pursuing sustainability-related biomimicry science and engineering. The biomimicry process is a whole system for product or process design incorporating six components: life, technology, biology, design, nature, and innovation. The system is organized around the fundamental principles that “life creates conditions conducive to life” and that nature has evolved to solve problems. Therefore, the system uses the following laws of nature as a template for man-made products: • Nature runs on sunlight • Nature uses only the energy it needs • Nature fits form to function • Nature recycles everything • Nature rewards cooperation • Nature banks on diversity • Nature demands local expertise • Nature curbs excesses from within • Nature taps the power of limits35 The practice of biomimicry in product and process design relies on nature as a model, a measure, and a mentor.
Land and Ecosystem Management Like nanomaterials, technologies that might enhance ecosystem health are fraught with unknown side effects, such as the problems of superweeds evolving in response to GMO agriculture.36 However, rapidly evolving ecosystem mapping technologies can reduce materials needed for agriculture and maintaining ecosystem health through pinpoint applications instead of broad applications.37
Permaculture The concept of Permaculture (permanent culture) “could be defined as the science of maximizing beneficial relationships” by emulating natural patterns and principles to increase resilience and quality of life.38 Using a systems approach to agriculture, permaculture uses a series of approaches to harness natural ecosystem behavior. A few of the techniques employed include: • Companion planting – a practice that allows neighboring plants to support each other—attracting beneficial insects, fixing nutrients in the soil, or protection from the elements. • Xeriscaping – selecting native or adapted species that thrive in the local ecosystem without irrigation • Composting in place – allowing plant waste to decay in place, returning the nutrients to the soil.39
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Biodynamic Agriculture Biodynamic farming methods and standards development began in the 1920s under the brand name Demeter. Biodynamic agriculture is a holistic approach in which vitality is the highest priority, and farming returns more to the soil than it removes. In this approach, “...the farm is considered as an organism in which plants, animals and human beings are integrated together.”40 Today, Demeter-International allows only “strictly controlled and contractually bound partners” to use its brand. Partners must go through a verification process that ensures strict compliance with Demeter’s Production and Processing Standards, as well as applicable organic regulations in the various countries. The requirements exclude the use of synthetic chemicals in agriculture and artificial additives during processing. They also require “specific measures to strengthen the life processes in soil and foodstuffs.”41
Bioremediation Bioremediation is typically used when land has been contaminated with toxic chemicals and needs remediation prior to serving another purpose. According to the US EPA: “Bioremediation uses microorganisms to degrade organic contaminants in soil, groundwater, sludge, and solids. The microorganisms break down contaminants by using them as an energy source or co-metabolizing them with an energy source.”42 Sustainable remediation is specifically defined by the Sustainable Remediation Forum as “Remediation that protects human health and the environment while maximizing the environmental, social and economic benefits throughout the project life cycle.”43
TOOLS AND TECHNIQUES Implementation Systems Sustainability implementation systems focus on whole-systems approaches that facilitate change, promote common understanding of sustainability and what it means for the organization, and provide a system of measurement and management. Change management systems are also frequently used in sustainability implementation systems but are not addressed here. Enterprises typically create their own unique systems for sustainability implementation, which draw from various approaches that are best suited to the organization, industry, and purpose of the system. Implementation strategies also frequently integrate sustainability into existing management systems instead of creating an entirely new system or combine environmental management with health and safety or quality management.
ISO 14001 The ISO 14001:2015 standard for environmental management systems (EMSs) was first developed and applied in the 1990s by organizations in both the private and public sectors.
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The objectives of the system are to: • engage senior management in environmental management challenges • help the organization understand its environmental impacts and provide a systematic process for addressing those that are most significant • ensure that other systems are conducted to support “continual improvement” of environmental performance and the EMS According to ISO, “An environmental management system helps organizations identify, manage, monitor and control their environmental issues in a holistic manner.” The 2015 revisions added emphasis to using life-cycle thinking.44 The continual improvement process involves repetition (likely on an annual basis) of a sequence of strategic planning activities known as “Plan, Do, Check, Act” or variations thereof. This framework, as outlined below, is often used in sustainability management systems (SMSs) as well.45 • Plan – recognize an opportunity and plan a change • Do – test the change and carry out a small scale project/study • Check – review the test, analyze the results • Act – take action based on what you learned in the study step The American Society for Quality (ASQ) recommends this system for new situations requiring continual improvement, when defining a repetitive work process, or when implementing any change. An ISO 14001 EMS is a set of minimum standards that can be enhanced to serve as a driver for sustainability performance. Among the changes required is to expand consideration of impacts to social and economic impacts, rather than solely focusing on environmental impacts; establish greater transparency than required; and incorporate sustainability into the required policy that guides the EMS efforts.46 ISO systems (enterprise-wide or for specific operations, such as an assembly plant or office complex) can be third-party audited for conformance with the standards, a process that enterprises often invest in to assist their system’s performance as well as express to stakeholders their own seriousness about effectively managing their environmental impacts.
ABCD Planning Method The Natural Step provides a tool that organizations can use to help with planning and implementing their sustainability strategies. The ABCD planning method is a system based on “systems thinking, setting ambitious goals, and developing realistic strategies to achieve them.”47 This is the system’s sequence: A Awareness & visioning – develop an understanding of the system in which the organization operates and the rules for success within that system. B Baseline Mapping – “backcasting” to perform a gap analysis between the vision of success and current practices—starting with the end in mind. C Creative Solutions – brainstorm potential innovations that could close the gap between practices and intentions.
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D Decide on Priorities – from potential solutions arrived at in the previous step, prioritize those actions that will move the organization toward sustainability.48 The process of backcasting referred to in step “B” is a process of imagining a successful future outcome followed by planning directed by the question “What do we need to do today to reach that vision of success?” According to The Natural Step, it allows a broader range of options than forecasting, which “relies on what is known today.” Backcasting for sustainable development is best achieved by using a principle-based definition of achieving sustainability, such as The Natural Step’s four framework principles (see Chapter 3).49
VISIS The VISIS system was developed by consultant Alan AtKisson as part of his Accelerator methodology for sustainability implementation (initially for local governments).50 It is designed to build mutual understanding, collaboration, and consensus. It can be especially valuable to multi-disciplinary settings and follows a five level framework, from which its acronym is derived: • Vision – develop clear goals based on an understanding of sustainability • Indicators – gather data on key trends in order to understand how the system is functioning • Systems – map the system to understand how its elements are interconnected, and identify leverage points for driving change • Innovation – brainstorm potential innovations, from “hard” changes in technology, investment, and infrastructure to “soft” changes in awareness, attitude, and values • Strategy – evaluate each potential innovation to determine the potential for successful implementation. In addition to traditional strategic planning processes, this includes an analysis of cultural roles and the dynamics that may affect acceptance of a given innovation The Sustainability Compass is a tool – one of several in AtKisson’s Accelerator toolkit – available to decision-makers to help them develop strong and meaningful indicators. Metaphorically named, each point on the Compass corresponds to a different dimension of sustainability as follows: • N = Nature refers to ecological systems and natural resources. Issues to consider include resource extractions, toxins emitted, ecosystems balance, and biodiversity. • E = Economy is the process by which resources are put to work to produce the things and services that humans want and need. This would include products and services as well as the investment in tangible assets. • S = Society is the collective or institutional dimension of human civilization, incorporating how networks successfully function, both internally and externally. Consider institutional governance, corporate culture, as well as social norms regarding equity and opportunity. • W = Wellbeing refers to satisfaction and happiness of individual people—their health, their primary relationships, and the opportunities they have to develop their full potential. Explore issues of health and safety, self-satisfaction, and quality of life.51
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Balanced Scorecard According to the Balanced Scorecard Institute (BSI), the Balanced Scorecard (BSC) is a strategic planning and sustainability management system, which helps organizations align their practices with their strategic vision. The tool also helps them improve communications and monitor their performance against strategic goals. The system’s fundamentals include Key Performance Indicators (KPIs) that indicate progress toward a desirable outcome.52 Drs. Robert Kaplan and David Norton began developing the BSC in 1992 in an effort to retain “financial metrics as the ultimate outcome measures for company success, but [supplement] these with metrics from three additional perspectives – customer, internal process, and learning and growth.” Kaplan and Norton describe these “as the drivers for creating long-term shareholder value.”53 According to Kaplan and Norton, “[t]he scorecard lets [managers] introduce four new management processes that, separately and in combination, contribute to linking long-term strategic objectives with short-term actions.” This entails asking four questions: • Financial – To succeed financially, how should we appear to our shareholders? • Customer – To achieve our vision, how should we appeal to our customers? • Internal process – To satisfy our shareholders and customers, what business processes must we excel at? • Learning and growth – To achieve our vision, how will we sustain our ability to change and improve?54 Building on this framework, the Institute recommends a nine-step continual improvement process of Strategy, Objectives, Strategy Map, Performance Measures, Initiatives, Performance Analysis, Alignment, Evaluation, and Assessment.55
Assessments & Measurement Indicators Indicators provide data about a topic or situation, which strategists and managers use to understand the world, inform decisions, and plan for actions. Understanding, selecting, and tracking indicators is critical to successfully implementing sustainability strategies. As described by the UN Commission on Sustainable Development (CSD), indicators can perform multiple functions: • They can lead to better decisions and more effective actions by simplifying, clarifying, and making aggregated information available to policymakers • They can help incorporate physical and social science knowledge into decision-making, and they can help measure and calibrate progress toward sustainable development goals • They can provide an early warning to prevent economic, social and environmental setbacks • They are useful for communicating ideas, thoughts, and values56 A performance indicator system requires communication strategies that help decision-makers
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focus on problems with sufficient passion. These can be as simple as emoticons or color-coding performance. For example, the US Federal government and Whole Foods have both embraced the use of the color scheme common to traffic signals—red, yellow, and green—to indicate which processes require the greatest or most urgent attention (red), which need some attention (yellow), and which are on track (green).57
Millennium Ecosystem Assessment The Millennium Ecosystem Assessment (MA) arose from the Earth Summit’s Convention on Biological Diversity (CBD) and the Convention to Combat Desertification (CCD). The MA aimed to fill the void in scientific data about the health of the ecosystem. Begun in 2001, the MA looked at existing research to evaluate the consequences of a changing ecosystem on humans and provided the scientific basis for action to conserve the ecosystem. The MA website summarizes their findings as follows: “The bottom line of the MA findings is that human actions are depleting Earth’s natural capital, putting such strain on the environment that the ability of the planet’s ecosystems to sustain future generations can no longer be taken for granted. At the same time, the assessment shows that with appropriate actions it is possible to reverse the degradation of many ecosystem services over the next 50 years, but the changes in policy and practice required are substantial and not currently underway.”58
Future Fit Business Benchmark (F2B2) In an effort to describe what a truly sustainable company would look like and how much work is needed to reach sustainability, Bob Willard engaged thought leaders to develop the Future-Fit Business Benchmark (F2B2). The result is a series of self-assessment tools to help businesses measure and manage their performance so they can close the gap between current practices and what science says will be needed tomorrow. The F2B2 goes beyond other approaches that strive to improve on past performance, exceed the performance of peers, or meet goals that fit a strategic plan. Instead, the Benchmark “defines the environmental and social break-even point for business—giving companies a clear destination to aim for, and a way to assess progress toward it.”59 As a result, a Future-Fit Business is “one that creates value while in no way undermining—and ideally increasing—the possibility that humans and other life will flourish on Earth forever.”60
S-CORE S-CORE™ (Sustainability – Competency, Opportunity, Reporting and Evaluation) is a multi-purpose sustainability assessment tool that speeds up the implementation of organizational sustainable practices. A tool that works equally well for businesses and nonprofits, S-CORE™ helps organizations determine where they are on the road to sustainability and identify and prioritize opportunities to accelerate their journey forward. Originally developed by AXIS Performance Advisors in collaboration with the International Sustainable Development Foundation and the Zero Waste Alliance, the web-based version of S-CORE™ was created by Sustainable Measures, LLC, to allow easier access by a wider audience of users. In 2014, AXIS and Sustainable Measures turned ownership of S-CORE™ over to ISSP in order to put the tool
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into the public domain and accelerate the implementation of sustainable best practices. Using the online version of S-CORE™ provides access to benchmark data that allows an organization to compare itself to the current state-of-the-art of sustainable business practices. That information can then be used internally to make strategic business planning decisions.61
Life-Cycle Assessment (LCA) LCA is a quantitative process developed in the 1990s and now defined by international standards (ISO 14040 series) to estimate the environmental impacts of a particular activity, from the sourcing of raw materials through the entire life-cycle to waste disposal. It is typically applied in the product design phase to estimate the impacts of alternatives available to the enterprise, such as paper vs. plastic packaging or alternative systems of leather tanning. According to UNEP, the phases of LCA are: • Goal and Scope Definition – the product(s) or service(s) to be assessed are defined, a functional basis for comparison is chosen and the required level of detail is defined; • Inventory Analysis – of extractions and emissions, the energy and raw materials used, and emissions to the atmosphere, water and land, are quantified for each process, then combined in the process flow chart and related to the functional basis; • Impact Assessment – the effects of the resource use and emissions generated are grouped and quantified into a limited number of impact categories which may then be weighted for importance; • Interpretation – the results are reported in the most informative way possible, and the need and opportunities to reduce the impact of the product(s) or service(s) on the environment are systematically evaluated.62 UNEP has developed guidelines for conducting life-cycle analysis of social impacts focused on the five main stakeholder categories: workers and employees, local community, society, consumers, and value-chain actors.63 A modified system was developed in 2005 that is based upon LCA quantitative environmental impacts analysis combined with qualitative information about social and economic impacts. It is designed to help decision makers understand the sustainability impacts and risks of an activity and potential for impacts to be reduced in the future. It can be applied to a specific activity (e.g., different sources of a raw material) or a whole company. The outcomes are employee sustainability education, identification of life-cycle information gaps, and management focus on the “hot spots” that require management focus.64
Life-Cycle Costing (LCC) Life-Cycle Costing (LCC) aims to help reduce costs by identifying the most cost-effective option among alternatives over their life-cycle. The system is designed to assist procurement operations in avoiding “first-cost, least-cost” thinking, which can often lead to purchasing less energy- or water-efficient machines in an attempt to save money. But such short-term thinking will cause greater environmental damage during operations and higher costs for utilities or input materials throughout the life cycle.
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According to consultants, Hitchcock and Willard, this approach also allows accounting for factors such as the maintenance costs and longevity of the product, associated costs of safety precautions, and disposal costs.65
Return-on-investment A return-on-investment (ROI) calculation is used to predict or (after implementation) measure the financial return or benefit of a project compared to the investment required. Numerous ROI calculation methods exist for specific purposes. Sustainability initiatives or projects are often subjected to ROI analysis, especially if the investment levels required and financial returns are reasonably quantifiable. According to the Inc.com encyclopedia, “ROI is the ratio produced when all gains from a transaction, less the costs associated with that transaction, are divided by the initial investment.” ROI can be used to evaluate investment in new equipment by dividing the increase in profit attributable to the new equipment by the increase in invested capital needed to acquire it.”66 A Sustainable Return on Investment (SROI) approach has been defined to incorporate the triple-bottom line objectives of sustainability initiatives into an ROI calculation. This requires quantifying and monetizing the sustainability benefits and impacts of a project through life-cycle assessment. Because ROI is typically applied to capital investments with a long life, ROI calculations are influenced by assumptions of the value of benefits and costs into the future, which are estimated by the process of discounting back to present values (i.e., net present value). The selection of discount rates is highly controversial since a high discount rate can severely devalue future benefits of costs in today’s dollars. ROI is often translated into a “payback period,” which is expressed in months, years, etc. It is “the time required for the amount invested in an asset to be repaid by the net cash flow output generated by the asset.”67 The basic formula is to divide the net cash outlay at the beginning by the estimated net cash flow to be generated each year.68
CASE STUDIES The list of businesses that have taken on sustainability leadership is long. Here are a few examples (listed in alphabetical order) that illustrate leadership in different aspects of sustainability performance. The examples are in part intended to illustrate the variety of initiatives available for enterprises. The sustainability professional’s role is to know the “universe” of potential initiatives and how best to formulate the particular recipe for a specific enterprise. It is also to answer the inevitable question from management when a new initiative is proposed: “Who else has done this and what happened to them?” IKEA, Sweden, home-products retailer, has long been among corporate sustainability leaders and was ranked fourth in the world by sustainability experts as a sustainability leader in 2016.69 Its current initiatives include reducing excessive work hours in Chinese factories without reducing total pay (to 49 hrs. per week); all cotton purchases coming from “more sustainable” sources; committing € 1 Billion towards climate action (jointly with IKEA Foundation); and attaining 50% of wood from “more sustainable sources”—all ahead of schedule.70
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Interface, US, maker of commercial interior products, became a sustainability leader in many respects beginning in 1994 when, drawing on a “dream team” of sustainability experts, it began designing products to achieve a 28-fold reduction in materials and energy use; defining fossil fuel use as a “waste” that should be reduced to zero; and formed public partnerships and gave presentations that continually advanced corporate sustainability.71 It continued its leadership in 2016 with its Climate Take Back strategy.72 Marks & Spencer, UK, launched its “Plan A” towards sustainable business in 2007 after being a retail leader for over a decade. It had won 230 sustainability awards by 2015. Its recent report cites 73% of its products meeting at least one Plan A sustainability performance specification, and it cites other unique sustainability goals, such as 5,800 work placements for unemployed young people since 2014. It has already achieved 57 of its 2020 commitments.73 Natura Cosmeticos, Brazil, was a founding member of the Union for Bioethical Trade. In support of its goal to “source ingredients sustainably without harming biodiversity,” it has been developing its 1.7 million sq. meter Ecoparque closed-cycle industrial complex, which will assist its goal of helping preserve the Amazon rainforest. In 2012 it sponsored a research network to finance new products using local and traditional Amazon-area knowledge. Natura was ranked seventh in the world by sustainability experts as a sustainability leader in 2016.74 Patagonia, US, led by visionary founder Yvon Chouinard, continues as a leader in use of recycled or organic materials for products (100% organic cotton since 1996), donations to charities and environmental NGOs (1% of sales and volunteer time), and launch of its “$20 Million and Change” fund to help “like-minded, responsible start-up companies bring about positive benefit to the environment.”75 Patagonia was ranked second in the world by sustainability experts as a sustainability leader in 2016.76 Puma, Germany, in 2011 became the first to implement an “Environmental Profit and Loss” framework – a form of “natural capital accounting.” It was the “only framework that provides businesses with valuable insights on relationships” between business and the environment “in a language they understand and [that] can be used to make changes.”77 It achieved leader status in Greenpeace’s ranking of brands, among other honors, in 2013.78 Walmart, US. Although often criticized for poor social sustainability practices,79 Walmart became a retail sector supply chain sustainability leader in the mid-2000s with adoption of 13 value-stream sustainability strategies, as well as a commitment to achieve 100% renewable energy use and zero waste. It has provided industry leadership towards sustainability labeling and product ratings, and its supplier sustainability survey, “The Sustainability Index,” was launched in 2009. It has also invested in assisting Asian agricultural suppliers with more sustainable practices and supported employees to conduct personal sustainability projects.80
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ADDITIONAL RESOURCES • Eric Lombardi, “Zero Landfill Is Not Zero Waste,” BioCycle July 2011, Vol. 52, No. 7, p. 44: https://www.biocycle.net/2011/07/18/zero-landfill-is-not-zero-waste/ • Climate Action Network, “A Sustainable Energy World Without Nuclear Power,” March 30, 2015: http://www.climatenetwork.org/sites/default/files/can_nuclear_position_ march_2015_0.pdf • Bloomberg Businessweek, “We Found Your Last Smartphone Next to Your Old VCR,” Nov 14, 2016: https://www.bloomberg.com/features/2016-ewaste-mexico/ • Corporate Citizenship, “Creating Resilient Strategies: Insights on how companies are responding to societal challenges,” 2014: http://corporate-citizenship.com/wp-content/uploads/Europe-Creating-Resilient-Strategies.pdf • The Corporate Knights, “Global 100 most sustainable corporations in the world”: http:// www.corporateknights.com/magazines/2016-global-100-issue/2016-global-100-results-14533333/ • GlobeScan, SustainAbility and Sustainable Brands, “The 2016 Sustainability Leaders”: http://www.globescan.com/component/edocman/?view=document&id=250&Itemid=591 • ISSP has more information about how to become a S-CORE™ assessor: http://www. sustainabilityprofessionals.org/resources/s-core-sustainability-assessment, as well as other training workshops: http://www.sustainabilityprofessionals.org/workshops • International Energy Agency, (IEA): http://www.iea.org/statistics/ • US National Academy of Sciences: http://www.nationalacademies.org/publications/index.html • International Organization for Standards (ISO), ¤ “ISO 14044:2006, Environmental management – Life cycle assessment – Requirements and guide-lines,” revised April 2016: http://www.iso.org/iso/catalogue_detail?csnumber=38498 ¤ “ISO 14040:2006 Environmental management – Life cycle assessment – Principles and framework,” revised April 2016: http://www.iso.org/iso/catalogue_detail?csnumber=37456 • Sustainability Compass https://compassu.wordpress.com/ • Ask Nature, “Ask Nature for Your Next Breakthrough Idea”: https://asknature.org/ • The following websites provide valuable continual updates of enterprise sustainability news: ¤ Business Green: http://www.businessgreen.com/ ¤ Ethical Corp: http://www.ethicalcorp.com/ ¤ GreenBiz: https://www.greenbiz.com/ ¤ Sustainable Brands: http://www.sustainablebrands.com/ ¤ Sustainable Business: http://www.sustainablebusiness.com/ ¤ Triple Pundit: http://www.triplepundit.com/ • Roundtable on Sustainable Palm Oil (RSPO: www.rspo.org
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Chapter Ten Endnotes 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.
16. 17. 18. 19. 20.
International Energy Agency, “More Data, Less Energy: Making Network Standby More Efficient in Billions of Connected Devices,” 2014: https://www.iea.org/publications/freepublications/publication/MoreData_LessEnergy.pdf Paul Hawken, Amory Lovins and L. Hunter Lovins, Natural Capitalism – Creating the Next Industrial Revolution, Little, Brown, 1999, p. 121. Paul Hawken, Amory Lovins and L. Hunter Lovins, Natural Capitalism – Creating the Next Industrial Revolution, Little, Brown, 1999, Chapters Two and Six. US ENERGY STAR “Invest in energy-efficiency measures that have a rapid payback”: https://www.energystar. gov/buildings/facility-owners-and-managers/existing-buildings/save-energy/find-cost-effective-investments Silvio Marcacci, “Energy Efficiency Creates 387% Return on Investment for US Southeast,” Cleantechnica, 3 March 2014: https://cleantechnica.com/2014/03/03/energy-efficiency-creates-387-return-on-investment-for-us-southeast/ Ludovico Alcorta, et. al., “Return on investment from industrial energy efficiency: Evidence from developing countries,” Energy Efficiency, 2014: http://link.springer.com/article/10.1007/s12053-013-9198-6 Fiona Harvey, “Nuclear power is only solution to climate change, says Jeffrey Sachs”: https://www.theguardian.com/environment/2012/may/03/nuclear-power-solution-climate-change Union of Concerned Scientists, “Nuclear Power & Global Warming”: http://www.ucsusa.org/nuclear-power/ nuclear-power-and-global-warming#.WCDGNiRp1W0 Union of Concerned Scientists, “How Nuclear Power Works”: http://www.ucsusa.org/nuclear-power/nuclear-power-technology/how-nuclear-power-works#.V_QXZCRp1W0 World Nuclear Association, “Fukushima Accident,” 2016: http://www.world-nuclear.org/information-library/safety-and-security/safety-of-plants/fukushima-accident.aspx See Natural Capitalism Solutions “Solving California’s Nuclear Dilemma” at http://natcapsolutions. org/2012/09/14/solving-californias-nuclear-dilemma/#.WC6MAXlriUk Jonathan Gifford, “Cleantech disruption to reduce annual utility revenues by up to $123 billion,” PV Magazine: http://www.pv-magazine.com/archive/articles/beitrag/cleantech-disruption-to-reduce-annual-utility-revenues-by-up-to-123-billion_100017449/#axzz4SCMitqN6 Chris Megerian and Liam Dillon, “Gov. Brown signs sweeping legislation to combat climate change,” Los Angeles Times, 8 Sept. 2016: http://www.latimes.com/politics/la-pol-ca-jerry-brown-signs-climate-laws20160908-snap-story.html NASA Earth Observatory, “The Carbon Cycle”: http://earthobservatory.nasa.gov/Features/CarbonCycle/ Ian Austen, “Technology to Make Clean Energy from Coal is Stumbling in Practice,” The New York Times, 29 March 2016: http://www.nytimes.com/2016/03/30/business/energy-environment/technology-to-makeclean-energy-from-coal-is-stumbling-in-practice.html?rref=collection%2Fsectioncollection%2Fscience&action=click&contentCollection=science®ion=stream&module=stream_unit&version=latest&contentPlacement=10&pgtype=sectionfront Sandra Postel, “Sustaining Freshwater and Its Dependents,” Worldwatch Institute, State of the World 2013, Chapter 5, 2013: http://library.uniteddiversity.coop/More_Books_and_Reports/State_of_the_World/State_ of_the_World_2013-Is_Sustainability_Still_Possible.pdf Anne Prieur-Vernat et al., Socio-economic and Ecosystems Water Valuation: Water Reuse in a Cogeneration Powerplant Kwinana, Australia,” 24 Aug. 2015: http://programme.worldwaterweek.org/sites/default/ files/engie_20150716-www.pdf Op. cit. Sandra Postel, 2013 This phenomenon was first described as the “spiral of impossibility” by Amory Lovins in Soft Energy Paths – Towards a Durable Peace, Friends of the Earth, 1975. Bill Christiansen, “Understanding Your Return on Investment: The Importance of Avoided Costs in Water Efficiency Program Evaluation,” Financing Sustainable Water, 11 March 2015: http://www.financingsustainablewater.org/blog/understanding-your-return-investment-importance-avoided-costs-water-efficiency-program
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21. The Ocean Cleanup, “Why We Need to Clean the Ocean’s Garbage Patches”: https://www.theoceancleanup.com/updates/show/item/why-we-need-to-clean-the-oceans-garbage-patches/ 22. National Geographic Society, “Encyclopedic Entry: Ocean Gyre”: http://nationalgeographic.org/encyclopedia/ocean-gyre/ 23. Lucinda F. Brown, Small Steps, Big Strides: Building Sustainability Habits at Home, STET Sustainability Consulting, 2016 24. Josephine Moulds and Emma Howard, “10 things you should know about sustainable palm oil,” The Guardian, 26 Nov. 2014: https://www.theguardian.com/sustainable-business/2014/nov/26/10-things-you-need-toknow-about-sustainable-palm-oil; and Ben Block, “Can Sustainable Palm Oil Slow Deforestation?” Worldwatch Institute, 2013: http://www.worldwatch.org/node/6082 25. Op. cit. Lucinda F. Brown, 2016 26. Op. cit. Lucinda F Brown, 2016 27. Tom Kraemer and Scott Gamble, “Integrating Anerobic Digestion with Composting,” Biocycle, Nov. 2014: https://www.biocycle.net/2014/11/18/integrating-anaerobic-digestion-with-composting/ 28. National Institute of Environmental Health Sciences, “Nanomaterials”: http://www.niehs.nih.gov/research/ programs/nanomaterials/index.cfm 29. Ibid. 30. Nathan Shedroff, Design Is The Problem, 2009: http://rosenfeldmedia.com/books/design-is-the-problem/ 31. Lean Enterprise Institute website, “Principles of Lean”: http://www.lean.org/WhatsLean/Principles.cfm 32. Lean Enterprise Institute website, “Lean Action Plan”: http://www.lean.org/WhatsLean/GettingStarted.cfm 33. Shawn Kitchell, Sr. VP of Operations, Madico Window Films, “Lean Manufacturing Yields ‘Green’ Results,” Environmental Leader, 2014: http://www.environmentalleader.com/2014/01/21/lean-manufacturing-yields-green-results/ 34. iSixSigma, “What is Six Sigma?”: https://www.isixsigma.com/new-to-six-sigma/getting-started/what-six-sigma/ 35. The Nature of Business website, “Biomimicry for Business?” 2013: https://thenatureofbusiness. org/2013/06/19/biomimicry-for-business/ 36. Charles Benbrook, The Organic Center, “Impacts of Genetically Engineered Crops on Pesticide Use in the United States: The First Thirteen Years,” 2009: https://www.organic-center.org/reportfiles/GE13YearsReport. pdf 37. National Ecosystem Approach Toolkit (NEAT), “Ecosystem Mapping Tool”: http://neat.ecosystemsknowledge.net/ecosystem-mapping-tool.html#1 38. Philippa Robinson, “Permaculture design: the fusion of old skills and new technology,” European Youth Portal, 28 February, 2014: http://europa.eu/youth/ie/article/62/14277_en 39. Ibid. 40. Demeter International, “Particularities of Demeter”: https://www.demeter.de/what-is-demeter/particularities-of-demeter 41. Demeter International, “Who Are We? What Do We Do?: http://www.demetercanada.ca/who-are-we-whatdo-we-do/ 42. US EPA, Contaminated Site Clean-Up Information (CLU-IN), “Bioremediation: Overview”: https://clu-in. org/techfocus/default.focus/sec/Bioremediation/cat/Overview/ 43. The Horinko Group, “The Rise and Future of Green and Sustainable Remediation,” 2014: http://www. thehorinkogroup.org/wp-content/uploads/2014/03/The-Rise-and-Future-of-Green-and-Sustainable-Remediation.pdf 44. ISO, “Introduction to ISO 14001:2015,” 2015: http://www.iso.org/iso/introduction_to_iso_14001.pdf 45. American Society for Quality website, “Plan-Do-Check-Act (PDCA) Cycle,” accessed Sept. 2016: http:// asq.org/learn-about-quality/project-planning-tools/overview/pdca-cycle.html 46. Dave Kunz, John Klosterman and Christopher Juniper, “Environmental Sustainability in the Manufacturing Process: Incorporating the Natural Step Principles,” Pollution Prevention Review, 2000: http://infohouse. p2ric.org/ref/39/38628.pdf
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47. The Natural Step, “Applying the ABCD Planning Method”: http://www.thenaturalstep.org/sustainability/ applying-the-abcd-planning-method/ 48. Ibid. 49. The Natural Step, “What is Backcasting?”: http://www.thenaturalstep.org/sustainability/backcasting/ 50. AtKisson Group website, “Introduction to VISIS,” accessed Sept. 2016: http://atkisson.com/visis/. Alan AtKisson is a member of the ISSP Hall of Fame. 51. AtKisson Inc., “The Sustainability Compass: Introduction and Orientation”: http://compassu.wordpress. com/ 52. Balanced Scorecard Institute, “Balanced Scorecard Basics”: http://balancedscorecard.org/Resources/Aboutthe-Balanced-Scorecard 53. Robert S. Kaplan, “Conceptual Foundations of the Balanced Scorecard,” 2010: http://www.hbs.edu/faculty/ Publication%20Files/10-074.pdf 54. Robert S. Kaplan and David P. Norton, “Using the Balanced Scorecard as a Strategic Management System,” 2007: https://labcalidad.files.wordpress.com/2013/02/oil.pdf 55. Balanced Scorecard Institute, “Building & Implementing a Balanced Scorecard: Nine Steps to Success”: http://balancedscorecard.org/Resources/The-Nine-Steps-to-Success 56. The Department of Economic and Social Affairs of the United Nations Secretariat, “Indicators of Sustainable Development: Guidelines and Methodologies,” 2007: http://www.un.org/esa/sustdev/natlinfo/indicators/guidelines.pdf 57. See, for example, the US Federal Office of Management and Budget’s Scorecard for executive agencies such as the Department of Education: http://www2.ed.gov/about/reports/strat/sustainability/fy2015-scorecard.pdf; Whole Foods rating system for seafood suppliers: http://www.wholefoodsmarket.com/sustainable-wild-caught-seafood 58. Millennium Ecosystem Assessment, “What are the main findings of the MA?,” 2005: http://www.millenniumassessment.org/en/About.html#2 59. Future Fit Business Benchmark, “What is a Future Fit Business”: http://futurefitbusiness.org/what-is-a-futurefit-business/ 60. Future Fit Business Benchmark, “Future-Fit Business Benchmark, Part 1: Concepts, Principles and Goals Release 1,” 2016: http://futurefitbusiness.org/resources/downloads/ 61. ISSP, “S-CORE™ Sustainability Assessment”: https://www.sustainabilityprofessionals.org/resources/s-core-sustainability-assessment 62. United Nations Environment Programme (UNEP), “Life Cycle Assessment,” April 2016: http://www.unep. org/resourceefficiency/Consumption/StandardsandLabels/MeasuringSustainability/LifeCycleAssessment/ tabid/101348/Default.aspx 63. UNEP, SETAC, and Life Cycle Initiative, “Guidelines for Social Life Cycle Assessment of Products,” UNEP, 2009: http://www.unep.org/pdf/DTIE_PDFS/DTIx1164xPA-guidelines_sLCA.pdf 64. Christopher Juniper, “Primer: The Sustainability Life-cycle Management (SLM) system,” 2015: http://www. sustainalogic.com/sustainable-lifecycle-management.html 65. Darcy Hitchcock and Marsha Willard, The Business Guide to Sustainability – Practical Strategies and Tools for Organizations, 3rd ed., Routledge, 2015. 66. Inc., “Return on Investment (ROI)”: http://www.inc.com/encyclopedia/return-on-investment-roi.html 67. Accounting Tools, “Payback Method / Payback Period Formula”: http://www.accountingtools.com/payback-period-formula 68. Ibid. 69. GlobeScan, SustainAbility, and Sustainable Brands, “The 2016 Sustainability Leaders,” GlobeScan, 2016: http://www.globescan.com/component/edocman/?view=document&id=250&Itemid=591 70. IKEA Group, “IKEA Group FY15 Sustainability Report”: http://www.ikea.com/ms/en_US/img/ad_content/2015_IKEA_sustainability_report.pdf 71. Ray C. Anderson, Mid-course Correction, Chelsea Green Publishing, 1998, and Confessions of a Radical Industrialist: Profits, People, Purpose – Doing Business by Respecting the Earth, St. Martins Press, 2009.
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72. Interface, “Climate Take Back”: http://www.interface.com/US/en-US/campaign/negative-to-positive/Climate-Take-Back 73. Marks & Spencer, “Plan A Report, 2016 ”: http://planareport.marksandspencer.com/M&S_PlanA_Report_2016_Overview.pdf 74. Op. Cit. GlobeScan, et. al., 2016 75. Patagonia, “Environmental and Social Responsibility”: http://www.patagonia.com/environmentalism.html 76. Op. Cit. GlobeScan, et. al., 2016 and Danielle Sacks, “Patagonia CEO Rose Marcario Fights the Fights Worth Fighting,” Fast Company, 6 Jan. 2015: http://www.fastcompany.com/3039739/creative-conversations/ patagonia-ceo-rose-marcario-fights-the-fights-worth-fighting 77. Raz Godelnik, “Puma’s New Natural Capital Accounting Framework Receives a Thumbs Up From Experts,” TriplePundit, 31 Dec. 2012: http://www.triplepundit.com/2012/12/pumas-new-natural-capital-accounting-framework-receives-thumbs-experts/# 78. Puma, “Sustainability”: http://about.puma.com/en/sustainability 79. Michelle Chen, “Here Are All the Reasons Walmart’s Business Is Not Sustainable: Walmart’s sustainability record is anything but ethical,” The Nation, 5 Dec 2015: https://www.thenation.com/article/here-are-allreasons-walmarts-business-not-sustainable/ 80. Walmart, “Sustainability”: http://corporate.walmart.com/global-responsibility/sustainability/
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GLOSSARY OF TERMS The following Glossary of Terms provides an at-a-glance view of the key terms that should part of the vocabulary of any well qualified sustainability professional. (Note that ISSP also has produced a set of flashcards, based on these terms, which can be purchased on our website at: https://www.sustainabilityprofessionals.org/civicrm/event/info?id=5769&reset=1.)
CORE CONCEPT
DEFINITION
USEFUL RESOURCES European Commission: http://ec.europa. eu/environment/aarhus/; http://www. unece.org/fileadmin/DAM/env/pp/documents/cep43e.pdf
Aarhus Convention
Entering into effect in 2001 among EU countries, and drafted by the United Nations Economic Commission for Europe (UNECE), this agreement guarantees the rights of individuals—independently and collectively—to live in “an environment adequate to his or her health and wellbeing.” This includes the “rights of access to information, public participation in decision-making, and access to justice in environmental matters.”
ABCD Planning Method
Adaptation
Adaptive management or Adaptive Resource Management (ARM)
Additionality
The Natural Step (TNS) provides a strategic plan- The Natural Step: http://www.thenatuning tool for sustainable development, based on the ralstep.org/our-approach/ work of Karl-Henrik Robert. This tool developed to help plan in complex systems entails four steps: Awareness and visioning, Baseline mapping, Creating solutions, Decide on Priorities. This is a tool used to address negative social or environmental impacts, by developing new, more effective ways of functioning after change has occurred.
NASA: http://climate.nasa.gov/solutions/adaptation-mitigation/
A systematic process of continuous improvement where policies and practices are improved and adapted based on learning from previous outcomes.
Foundations of Success http://www. fosonline.org/wordpress/wp-content/ uploads/2010/06/AdaptiveManagementTool.pdf
In the carbon offset market, this test answers the CORE: http://www.co2offsetresearch.org/ question: Are the GHG reductions a direct result of consumer/Additionality.html the project being sold? If, all else being equal, the project reduces GHG levels, then the project passes this test.
Agenda 21
A non-binding action plan for sustainable development adopted at the Earth Summit, it provided a wide-ranging blueprint to drive sustainable development around the world.
UN: https://sustainabledevelopment. un.org/milestones/unced/agenda21
British Columbia: http://www.who.int/ mediacentre/factsheets/fs313/en/
Ambient air pollution
Measured at ground level, away from direct sources of pollution, this refers to the level of pollution found in outdoor air. Poor air quality is associated with heart disease, lung cancer, respiratory diseases and stroke.
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CORE CONCEPT
DEFINITION
USEFUL RESOURCES
The UN Framework Convention on Climate Change defines these entities as industrialized nations (previously OECD members) and economies in transition (EIT). These countries are taking on emissions reduction obligations.
UN Framework Convention on Climate Change: http://unfccc.int/parties_and_ observers/items/2704.php
The proposed epoch in Earth’s history that begins around the time of the Industrial Revolution when human activities began to have a significant impact on the Earth’s geology and ecosystems.
Colin N. Waters, et al, “The Anthropocene is functionally and stratigraphically distinct from the Holocene,” Science, 2016: http://science.sciencemag.org/content/351/6269/aad2622.long
The effect of human activity on climate change.
Intergovernmental Panel on Climate Change: https://www.ipcc.ch/publications_and_data/ar4/wg1/en/ch9s9-7.html International Monetary Fund: http://www.imf.org/external/pubs/ft/ fandd/2015/06/mazarei.htm
Arab Spring
Sparked by a Tunisian street vendor who set himself on fire in December of 2010, this refers to a period of uprising across the Arab world. Years of economic inequality, high unemployment, and political disenfranchisement came to a head when millions of Arab people protested and rioted, demanding political, social, and economic justice.
B Corporation: https://www.bcorporation.net/what-are-b-corps/about-b-lab
B Corp Certification
A certification scheme for a for-profit company whose mission aligns with creating a better society and has met the sustainability standards developed by B Lab. Their rigorous standards address social and environmental performance, accountability, and transparency. Note that, some certified companies have legally organized themselves as “benefit corporations”.
The Natural Step: http://www.thenaturalstep.org/sustainability/backcasting/
Backcasting
Unlike forecasting based on data about what has already happened, this planning approach begins with the end in mind. Central to The Natural Step framework, planners first envision the desired future state, and then build a strategy that will lead to the desired outcome. A strategic framework used to align business practices with TBL goals, improve stakeholder communications, and monitor performance.
Balanced Scorecard Institute: https:// www.balancedscorecard.org/BSCResources/AbouttheBalancedScorecard/ tabid/55/Default.aspx
These are also known as negative feedback loops, and have a stabilizing effect, creating resistance, eventually limiting growth or collapse.
Thwink.org: http://www.thwink.org/sustain/glossary/FeedbackLoop.htm
Annex 1 Parties
Anthropocene
Anthropogenic
Balanced Scorecard
Balancing loops
Base year
In corporate GHG accounting, this is a specific year GHG Protocol: A Corporate Account(or an average over multiple years) against which ing and Reporting Standard: http:// an organization’s impacts are tracked over time. www.ghgprotocol.org/standards/corporate-standard
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Baseline
This term refers to emissions levels represented by the status-quo-ante in GHG Project Accounting. To evaluate project additionality (including GHG emissions reductions, removals, or storage), a project accountant develops various scenarios against this point in time.
The GHG Protocol for Project Accounting: http://ghgprotocol.org/files/ghgp/ ghg_project_accounting.pdf
Benefit Corporation
A legal entity that may (or may not) be a Certified Benefit Corporation: http://benefitB Corporation™. Directors of this corporate type corp.net/businesses/benefit-corporaare required by law to consider the impact of their tions-and-certified-b-corps actions on all stakeholders, rather than their stockholders alone. In most cases, they must publicly disclose their social and environmental performance, assessed against a 3rd-party standard. Occurring in December of 1984, this disaster took place at the Union Carbide (now Dow Chemical) pesticide plant in central India. A half million people were exposed to methyl isocyanate (MIC) gas.
Edward Broughton, “The Bhopal disaster and its aftermath: a review,” Environmental Health, 2005: http:// ehjournal.biomedcentral.com/articles/10.1186/1476-069X-4-6
Biodiversity
This term refers to the full range of life forms on Earth—their species, genetic, and ecological diversity.
National Wildlife Federation, US: http:// nwf.org/Wildlife/Wildlife-Conservation/ Biodiversity.aspx
Biodynamic agriculture
A holistic, ethical, and ecological approach to farming that strives to regenerate the soil and ecosystem.
Biodynamics Association: https://www. biodynamics.com/what-is-biodynamics
Bhopal chemical leak
Biofuel
A liquid fuel, derived from plant matter (biomass), US Department of Energy, Alternative which is used for transportation. There are three Fuels Data Center: http://www.afdc.enerformulations. Ethanol is an alcohol, fermented from gy.gov/fuels/natural_gas_renewable.html high carbohydrate biomass. Biodiesel is made from a mixture of alcohol and vegetable oil—sometimes recycled cooking oil. Biogas is a gaseous fuel, produced from either anaerobic digestion or gasification. Sources of biogas recovery include landfills, livestock operations, and waste treatment plants.
Biomimicry
An approach to product design and innovation Biomimicry Institute: https://biomimicry. that emulates nature’s patterns and strategies to find org/what-is-biomimicry/#.V3v9TTWmsustainable solutions to human challenges. D7g
Bioremediation
Introducing microbes and other biological organisms Cornell University: http://ei.cornell.edu/ to rehabilitate environmentally contaminated sites. biodeg/bioremed/
Bottom of the pyramid
A term used to describe four billion people who live in poverty and have been mostly un-served or underserved by the private sector. Contrary to conventional wisdom, these people are resilient entrepreneurs and value-conscious consumers who can partner with business to eradicate poverty.
Wharton School: http://knowledge. wharton.upenn.edu/article/the-fortuneat-the-bottom-of-the-pyramid-eradicating-poverty-through-profits/
BREEAM: http://www.breeam.com/
BREEAM
A TBL procurement, design, construction and operation assessment that evaluates a building construction project against performance benchmarks. Assessments are performed by independent auditors.
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Publisher of “Our Common Future” in 1987, the UN’s World Commission on Environment and Brundtland Commission Development got its moniker from its Chairwoman, Gro Harlem Brundtland, the ex-Prime Minister of Norway.
USEFUL RESOURCES UN Biography of Dr. Gro Harlem Brundtland: http://www.un.org/News/dh/ hlpanel/brundtland-bio.htm
The business structure of an organization, its purpose and method of making money.
HBR: https://hbr.org/2015/01/what-is-abusiness-model
CAFE standards (Corporate Average Fuel Economy)
Standards that set the average fuel economy for new vehicle that a manufacturer's fleet must achieve, originally established by the US Congress for cars and light trucks, in the 1970s, in response to the Arab oil embargo. In 2007 updated legislation raised the standards for cars, light trucks, and SUVs. Current standards must be met at maximum feasible levels through 2030.
Union of Concerned Scientists: http:// www.ucsusa.org/clean-vehicles/fuel-efficiency/fuel-economy-basics.html#. V7raujWmD7g
Cap and trade system
An emissions trading scheme, whereby lower emitters sell permits to excessive emitters so they can stay within their regulatory emissions cap.
Environmental Defense Fund: https:// www.edf.org/climate/how-cap-and-tradeworks
Carbon capture and sequestration (CCS)
A set of technologies used to remove carbon dioxide from the atmosphere and store it, long-term, deep underground. Designed to reduce the climate impact of gas- and coal-fired power plants.
EPA: https://www3.epa.gov/climatechange/ccs/
Carbon credits
Instruments used to trade carbon emissions among parties in either the voluntary or compliance markets.
Brokers Environmental: http://www. brokerscarbon.com/carbon-credits.php
Carbon cycle
Carbon is the building block of life on Earth. When nature is in balance, carbon flows cyclically between each of the “spheres”—the atmosphere, biosphere, hydrosphere, and geosphere.
NASA Earth Observatory: http:// earthobservatory.nasa.gov/Features/CarbonCycle/
Carbon dioxide (CO2)
Formed through cellular respiration, the decomposition of biomass, and combustion, excess carbon dioxide in the atmosphere is a major contributor to the greenhouse effect. This is one of the greenhouse gases that nations are required to track under the Kyoto Protocol. According to the IPCC’s Fifth Assessment Report (AR5) it has a global warming potential of 1.
NPR (5 part video series “Global Warming: It's All About Carbon” with Robert Krulwich): http://www.npr. org/2007/05/01/9943298/episode-1-itsall-about-carbon; “Global Warming Potential Values,” GHG Protocol: http:// www.ghgprotocol.org/calculation-tools/ all-tools
Carbon dioxide equivalent (CO2e)
The universal unit of measurement expressing the global warming potential (GWP) of greenhouse gases. It is used to compare the radiative force of a GHG to CO2.
GHG Protocol: A Corporate Accounting and Reporting Standard: http:// www.ghgprotocol.org/standards/corporate-standard
Carbon Dioxide Removal (CDR)
Also known as Carbon Engineering, this technology is used to counteract the greenhouse effect and ocean acidification by removing CO2 from the atmosphere. Multiple technologies have been proposed, such as afforestation, biochar, carbon capture, and sequestration.
Oxford Geoengineering Programme: http://www.geoengineering.ox.ac.uk/ what-is-geoengineering/what-is-geoengineering/
Business model
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The Carbon Disclosure Project: https:// www.cdp.net/en-US/Pages/HomePage. aspx
Carbon Disclosure Project (CDP)
Drives the disclosure of measurement information to improve the way companies manage their environmental risk over the long-term. They work with nearly 1,000 institutional investors to report Climate, Water, and Deforestation impacts, as well as, the performance of Supply Chains. In addition, their public sector program works with cities, states and regions to improve environmental performance. The total GHG emissions from fossil fuel use.
Global Footprint Network: http://www. footprintnetwork.org/en/index.php/GFN/ page/glossary/
Carbon footprint
Carbon offsets
Carbon sequestration
USEFUL RESOURCES
A mechanism employed by businesses to meet their CORE (Carbon Offsets Research carbon reduction goals. Purchasing carbon credits and Education): http://www.co2offseequivalent to emissions generated by operations tresearch.org/consumer/ allows businesses to offset their impacts and meet their reduction goals. Through the process of photosynthesis, trees, USDA Forest Service: http://www.fs.fed. grasses, and other plants take up atmospheric us/ecosystemservices/carbon.shtml carbon dioxide and store the carbon in their trunks, branches, foliage, roots, and soil. Over millennia, the biomass fossilizes and converts to coal and other fossil fuels.
Carrying capacity
The maximum population that can survive indefinitely on the available resources and services.
Sustainable Measures: http://www.sustainablemeasures.com/node/33
Caux Round Table (CRT) – Principles for Business
These provide “a worldwide vision for ethical and responsible corporate behavior and serve as a foundation for action for business leaders worldwide”.
Caux Roundtable: http://www.cauxroundtable.org
Caux Round Table (CRT) – Principles for Government
These are based on the idea that “the expectation that better government supporting the entrepreneurial endeavors of socially responsible businesses around the world will generate greater investment of private capital to create more wealth for poor people”.
Caux Roundtable: http://www.cauxroundtable.org
Ceres: http://www.ceres.org/
Ceres Principles
A global coalition of investors and environmental and social advocacy groups supporting investment, policy, and business leadership in order to promote sustainability. Qualified emissions reductions under the Clean Development Mechanism (CDM).
UN Framework Convention on Climate Change: http://unfccc.int/kyoto_protocol/mechanisms/clean_development_ mechanism/items/2718.php
Certified Emission Reduction (CER) units
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USEFUL RESOURCES European Chemical Agency (ECHA): https://echa.europa.eu/chemicals-in-ourlife/which-chemicals-are-of-concern
Chemicals of Concern
Everything containing matter is made up of chemicals—in liquid, gas, or solid form; natural and manmade; pure or mixed. The majority of chemicals pose no risk to humans or the environment, but those that could potentially cause harm are considered hazardous. Depending on the harmful properties of these they are regulated in order to protect human and environmental health.
Chlorofluorocarbon (CFC)
A family of chemicals that are nontoxic and nonflammable that are used by industry in such applications as aerosols, solvents, and refrigerants. One example, Freon (CHC-12) was used for decades in refrigerators, freezers and air conditioners. Because they react with the upper atmosphere, they have a high ozone depleting potential (ODP) and are therefore banned under the Montreal Protocol.
US National Oceanic & Atmospheric Administration (NOAA), Earth System Research Laboratory: http://www.esrl. noaa.gov/gmd/hats/publictn/elkins/cfcs. html
Circular economy
An approach to business and sustainable development that replaces our “take, make, waste” economy with one that continuously reuses outputs, adding only those inputs derived from exclusively renewable sources.
Ellen MacArthur Foundation: https:// www.ellenmacarthurfoundation.org/circular-economy
Passed in 1972, this act protects human and environmental health from the effects of air pollution. Over the years, it has been used to cut ozone, sulfur and nitrogen dioxide in order to address acid rain, and remove lead from gasoline. In 2007, the US Supreme Court upheld the EPA’s ability to regulate GHG emissions under this legislation. This action made it possible for the US to drive clean energy efforts despite political opposition.
Union of Concerned Scientists: http:// www.ucsusa.org/global_warming/solutions/reduce-emissions/the-clean-air-act. html#.V88qk62mD7g
Clean Development Mechanism (CDM)
A mechanism established by the Kyoto Protocol designed to encourage project-based emission reduction activities in developing countries. Purchasing the CERs produced by these projects allows Annex 1 countries to meet their reduction commitments.
Climate Change: Guide to Kyoto Protocol Project Mechanisms; Volume B: https://wbcarbonfinance.org/docs/b_en_ cdm_guide_ld.pdf
NASA: http://climate.nasa.gov/evidence/; http://www.nasa.gov/mission_ pages/noaa-n/climate/climate_weather. html
Climate change
While weather refers to atmospheric conditions over short periods of time, climate is the long-term behavior of the atmosphere—an accumulation of weather over time. Although daily weather may appear relatively constant, incontrovertible scientific data shows that Earth’s climate is changing. The result is an increase in severe weather events, drought, changes in ocean chemistry, and rising tides. Another term for net-zero.
NREL: http://www.nrel.gov/tech_deployment/climate_neutral/definitions.html
Also known as combined heat and power (CHP), this is the process of capturing and using waste heat, a byproduct of burning fuel for electricity.
Cogen Europe: http://www.cogeneurope. eu/what-is-cogeneration_19.html
Clean Air Act (CAA)
Climate neutral Cogeneration
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Communication of Progress (CoP)
At a minimum, signatories to the UNGC must produce one of these each year. The document reinforces corporate commitment to the UNGC and describes the measurable results of actions taken over the prior year.
UN Global Compact: https://www.unglobalcompact.org/participation/report/ cop
Community Capital
All the “natural, human, social, and built capital from which a community receives benefits and on which the community relies for continued existence”.
Sustainable Measures: http://www.sustainablemeasures.com/node/32
Comprehensive Assessment System for Built Environment Efficiency (CASBEE)
This is a Japanese rating system for evaluating the environmental performance of the built environment. The program provides tools for assessing the environmental performance of housing, commercial buildings, neighborhood, and cities.
Comprehensive Assessment System for Built Environment Efficiency (CASBEE): http://www.ibec.or.jp/CASBEE/ english/
Passed in the wake of the Three Mile Island nuclear accident, this act, provides a US Federal "Superfund" for hazardous-waste cleanup. It also empowers the US EPA to seek out responsible parties and assure their cooperation in the cleanup.
US EPA: https://www.epa.gov/laws-regulations/summary-comprehensive-environmental-response-compensation-and-liability-act
Conference of the Parties (COPs)
The supreme decision-making body comprised of the parties that have ratified the UN Framework Convention on Climate Change. It has met on an annual basis since 1995, to evaluate progress on the project mechanisms of the Kyoto Protocol. As of February 2003, it is comprised of 188 countries.
Climate Change: Guide to Kyoto Protocol Project Mechanisms, Volume A: https://wbcarbonfinance.org/docs/a_en_ kyoto_projects_ld.pdf
Global Witness: https://www.globalwitness.org/en/campaigns/conflict-minerals/
Conflict minerals
Refers to the trade in non-military goods, the income from which is used to fund wars and helps to perpetuate human rights abuses. Used in the context of central Africa, tin, tungsten, and tantalum (the 3Ts) plus gold comprise these goods.
Consumptive use
Refers to water that is removed from the environment through either evapotranspiration or consumption.
NREL “Consumptive Water Use for US Power Production,” 2003: http://www. nrel.gov/docs/fy04osti/33905.pdf
International, multilateral, instruments, often with a narrower scope than a treaty, which establish general guidelines and principles for governance that may precede, or form the basis for, a formal treaty. a type of legally-binding international treaty.
UN, NZCEL and SPREP, “Multilateral Environmental Agreement: Negotiator’s Handbook Pacific Region 2013”: http:// www.sprep.org/attachments/Publications/ EMG/MEA_Handbook_2013.pdf
Coral bleaching
This phenomenon results when resident algae die, due to changes in environmental conditions (e.g. temperature, light, nutrients), causing them to be expelled from their hosts.
US National Oceanic & Atmospheric Administration (NOAA), National Ocean Service: http://oceanservice.noaa. gov/facts/coral_bleach.html
Corporate Social Responsibility (CSR)
This term refers to the business practice of focusing on activities affecting the triple bottom line interests of all stakeholders.
IISD: https://www.iisd.org/business/issues/ sr.aspx
Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA)
Conventions
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Cradle to cradle
Refers to an assessment of impacts beginning with materials extraction through to the point where the materials become inputs for new products. This type of assessment is fundamental to a circular economy.
Circular Ecology: http://www.circularecology.com/glossary-of-terms-and-definitions.html#.V3_qbjWmD7g
Cradle to Cradle Certified
A product certification that provides third-party assurance that a product has been designed and produced so its component parts may be used as inputs to new products.
Cradle to Cradle Products Innovation Institute: http://www.c2ccertified.org/ get-certified/product-certification
An LCA assessment of impacts from materials extraction to the factory door.
Circular Ecology: http://www.circularecology.com/glossary-of-terms-and-definitions.html#.V3_qbjWmD7g
An LCA assessment of impacts from materials extraction through manufacture and usage, to the landfill.
Circular Ecology: http://www.circularecology.com/glossary-of-terms-and-definitions.html#.V3_qbjWmD7g
Cradle to Gate
Cradle to Grave
Countries adopting this declaration are committed to providing workers freedom of association and Declaration On the right to collective bargaining, the elimination Fundamental Principles of forced labor, the abolition of child labor, and the And Rights At Work elimination of discrimination in employment and occupation.
Deepwater Horizon
Dematerialization
Desalination
Design for the Environment (DfE)
International Labour Organization: http://www.ilo.org/declaration/lang--en/ index.htm
Also known as the Gulf Oil Spill, this 2010 disaster Scientific American: http://www.scienwas the largest oil spill in history. This event tificamerican.com/report/bp-gulf-oileffectively erased the efforts of BP (previously spill-5-years-later/ British Petroleum) to brand their company as an environmentally conscious company going “Beyond Petroleum”. This term describes the practice of reducing material flows—using less of the same substances to produce an equivalent product. Along with substitution, this practice provides a key mechanism for driving sustainable development.
KH Robert, “Strategic Sustainable Development: Selection, Design and Synergies of Applied Tools” Journal of Cleaner Production, 2002: http://www.foroandinopvc.org.co/documentos/Strategic%20 Sustainable%20Development%20-%20 K.H%20Robert%20et%20al.pdf
This technology uses a process called reverse osmosis (RO) to remove salt and other inorganic impurities from seawater, producing potable water for human consumption and crop irrigation.
Sloan Review, MIT: https://www.technologyreview.com/s/533446/desalination-out-of-desperation/
Originally a program of the US Environmental US EPA: https://www.epa.gov/safProtection Agency (EPA), this is an approach to erchoice/design-environment-procreating more sustainable products and services grams-initiatives-and-projects that incorporates human health and environmental impact into design decisions.
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Direct emissions
Emissions derived from sources that are owned or controlled by a reporting entity. This may include emissions from onsite combustion in boilers, furnaces, vehicles, etc., as well as emissions from chemicals in process equipment (e.g. fire suppression or refrigeration equipment. Direct emissions are reported under either Scope 1 or Scope 3.
GHG Protocol: A Corporate Accounting and Reporting Standard: http:// www.ghgprotocol.org/standards/corporate-standard
Dow Jones Sustainability Index (DJSI)
Maintained in collaboration with RobecoSAM, this scorecard follows a “best-in-class” approach to corporate sustainability rating for investors. Their series of indices are based on a comprehensive assessment of long-term TBL criteria.
Dow Jones Sustainability Indices: http:// www.djindexes.com/sustainability/
Downcycle
Since materials degrade when used (we know this from entropy, the 2nd law of thermodynamics), when recycled they can only be used as inputs for lower quality products. This term describes this phenomenon.
Dictionary of Sustainable Management: http://www.sustainabilitydictionary.com/ downcycle/
Dynamic complexity
Dynamic equilibrium
Earth Charter
Ecodesign Directive
Ecolabel
This term describes what happens in a system that The Fifth Discipline by Peter Senge, is both complex and changing. Taking action in 2006, Doubleday. page 71-72. one part of this type of system yields unpredictable, erratic results, that makes solving sustainability challenges like climate change particularly difficult. Equilibrium occurs when a system is in balance such that changes to that system are imperceptible. Static equilibrium describes a system that is unchanging and motionless, but this type of equilibrium exists when a system is in a state of change yet the opposing forces at work are equivalent.
Wendy K. Smith And Marianne W. Lewis, “Toward A Theory of Paradox: A Dynamic Equilibrium Model of Organizing,” https://www.researchgate.net/profile/Wendy_Smith22/ publication/274709284_TOWARD_A_THEORY_OF_PARADOX_A_DYNAMIC_EQUILIBRIUM_MODEL_OF_ORGANIZING/ links/5526aeb70cf229e6d635a31f.pdf
Based on the existing conditions, this is an ethical Earth Charter: http://earthcharter.org/ framework that provides guidance for the transition to more sustainable living and development. The 16 guiding principles address four primary concepts: Respect and care for the community of life; Ecological integrity; Social and economic justice; Democracy, nonviolence, and peace. This EU Directive provides rules for improving the energy efficiency and environmental performance of energy-using products (EuP) and energy-related products (ErP).
European Commission: http://ec.europa. eu/growth/industry/sustainability/ecodesign_en
A “sign or logo that is intended to indicate an environmentally preferable product, service or company, based on defined standards or criteria”. Depending on the certification standards, their reliability will vary.
Ecolabel Index: http://www.ecolabelindex.com/ecolabels/
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Ecological Economics
DEFINITION
USEFUL RESOURCES
The transdisciplinary field of ecology and ecoRobert Contanza: http://insights.som. nomics that endeavors to understand how humans yale.edu/insights/what-ecological-ecointeract with the ecosystem around them. Informed nomics by the past practitioners work to include the value of natural capital from ecosystem services to drive future decisions.
Ecological footprint
The measure of biologically productive land and water required to produce all the resources consumed and to absorb the waste generated. The carbon footprint is one part of this measurement.
Global Footprint Network: http://www. footprintnetwork.org/en/index.php/GFN/ page/glossary/
Ecological integrity
This term refers to an ecosystem when all the native components—the abiotic elements, biodiversity and ecosystem processes—intact.
Parks Canada: http://www.pc.gc.ca/eng/ progs/np-pn/ie-ei.aspx
Ecosphere
Comprised of four major systems explored by environmental studies and Earth science. The Geosphere is the Earth’s core, mantle, and crust. The Atmosphere is the air around the Earth, which includes the troposphere, stratosphere, mesosphere, thermosphere, and ionosphere. The Hydrosphere – is all the water contained on Earth, whether in solid, liquid or gaseous form (e.g. ice, oceans, clouds, etc.). The Biosphere – life on Earth, including plants, animals, insects, etc.
Norman Herr, Ph.D., California State University, Northridge: https://www. csun.edu/science/books/sourcebook/ chapters/8-organizing/files/earth-systems-interactions.html
Ecosystem
This consists of the biological community along with the physical and chemical factors that make up its nonliving environment.
Green Facts on Health and the Environment: http://www.greenfacts.org/en/ ecosystems/index.htm#8
Any positive benefit provided by an ecosystem. Four major categories of these were identified by the Millennium Ecosystem Assessment (MA): Provisioning (e.g. food, water); Regulating (e.g. pollination, carbon sequestration); Cultural (e.g. recreation, inspiration); Supporting (e.g. photosynthesis, carbon cycle).
National Wildlife Federation: https:// www.nwf.org/Wildlife/Wildlife-Conservation/Ecosystem-Services.aspx
A US-based product rating system for energy efficient information technology (IT) with environmental criteria addressing the full product life cycle—design, production, usage, and recycling. The rating is more rigorous than the ENERGY STAR qualifying criteria.
EPEAT: http://www.epeat.net/
The energy consumed throughout a product’s life cycle—outside the usage phase—including materials extraction, manufacturing, transportation, and end-of-life management.
Institution of Civil Engineers: https:// www.ice.org.uk/disciplines-and-resources/ briefing-sheet/embodied-energy-and-carbon
Ecosystem services
Electronics Products Environmental Assessment Tool (EPEAT)
Embodied or Embedded energy
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Emission Reduction Unit (ERU)
Emissions factor
Employee ownership
DEFINITION
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Under the Joint Implementation (JI) mechanism of the Kyoto Protocol, these carbon credits may be transferred from the account of the host country (the place where the emissions reduction project is located) to that of the investor country. These compliance credits help Annex 1 countries meet their emissions reduction targets.
Climate Change: Guide to Kyoto Protocol Project Mechanisms, Volume C: http://www.ffem.fr/ jahia/webdav/site/ffem/shared/ELEMENTS_COMMUNS/U_ADMINISTRATEUR/5-PUBLICATIONS/ Changement_climatique/GuideC_projets_Kyoto_angl.pdf
This is a value that helps to quantify the amount of a pollutant released into the atmosphere as the result of a given activity.
Ecometrica: http://emissionfactors.com/ knowledge/questions/25/emission-factors/
This describes the ownership of a company by a broad cross-section of employees—from rank-andfile to management—offered through a formal plan by the company.
National Center for Employee Ownership (NCEO): https://www.nceo.org/ employee-ownership/id/12/
Passed by Congress in 1973, this act made the US one of the first countries to afford legal protections Endangered Species Act to a full range of living things, including birds, in(ESA) sects, fish, reptiles, mammals, crustaceans, flowers, grasses, and trees.
US EPA: https://www.epa.gov/laws-regulations/summary-endangered-species-act
Endocrine disrupter
Certain chemicals, such as lead and mercury, have been shown to have adverse effects on hormone production and function. Many of these are still found in prolific products such as cookware, plastic containers, canned food, and others.
US National Institute of Environmental Health Sciences: https://www.niehs.nih. gov/health/topics/agents/endocrine/
Energy Efficiency
This term is defined as getting more output for the energy expended. It can be calculated as the ratio of useful “energy” (the capacity to do work) to total energy expended while performing “work” (defined as the transfer of energy).
The Physics Hypertextbook: http://physics.info/energy/; International Energy Agency (IEA): http://www.iea.org/topics/ energyefficiency/ Alternative Fuels Data Center: http:// www.afdc.energy.gov/laws/key_legislation
Energy Policy Act of 1992 (EPACT 1992)
This Act of 1992, enacted by the US Congress, was aimed at reducing petroleum dependence and improving air quality. The legislation covers all aspects of energy supply and demand and boosted investment in alternative fuels vehicle technology, among other things.
ENERGY STAR
Established under the Clean Air Act in 1992, this program helps businesses and individuals become more energy efficient, protect the environment, and save money. The European version of this program is a related scheme that applies to office equipment.
ENERGY STAR: https://www.energystar. gov/; EU ENERGY STAR: http://www. eu-energystar.org/
This legislation sets performance standards for those products that have an indirect impact on energy consumption (e.g. windows and faucets).
European Commission: http://ec.europa. eu/growth/industry/sustainability/ecodesign_en
This legislation sets energy efficiency thresholds for products that use energy (e.g. televisions, lighting, computers, etc.).
European Commission: http://ec.europa. eu/growth/industry/sustainability/ecodesign_en
Energy-related product (ErP) Energy-use product (EuP)
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USEFUL RESOURCES Frank L. Lambert: http://entropysimple. oxy.edu/content.htm
Entropy
This scientific law—the second law of thermodynamics—states that energy disperses and spreads out if not prevented from doing so. As a result anything emitted into the environment will disburse throughout nature.
Environmental justice
Environmental justice addresses the interaction between environmental quality and social justice. It is governed by the principle that everyone has the right to equal protection from damage, risk, and discrimination due to pollution.
Luz Claudio, “Standing on Principle: The Global Push for Environmental Justice,” Environ Health Perspective, 2007: http://www.ncbi.nlm.nih.gov/pmc/ articles/PMC2022674/
Environmental Management Systems (EMS)
This provides a framework for reaching sustainISO: https://www.iso.org/obp/ui/#iso:stability goals through consistent control of operd:iso:14001:ed-3:v1:en ations, which includes a process for continuous improvement. In addition to offering certification under ISO 14001, ISO 14004 provides guidance for creating this. Many types of these follow the Plan > Do > Check > Act (PDCA) framework.
Environmental Product Declarations (EPDs)
This document provides consumers with quantifiable LCA data on the environmental impact associated with a given product. Following the ISO 14025 product category rules (PCR), it is used to compare the relative impact of similar products.
ASTM: http://www.astm.org/ CERTIFICATION/filtrexx40.cgi?P+PROG+7+cert_detail.frm
UNPRI: https://www.unpri.org/about/ the-six-principles
Environmental, Social, and Governance (ESG)
Enterprises pursuing sustainability are often described as pursuing improvements in these three key areas. Some SRI reporting frameworks, such as those set forth by PRI (an investor initiative in partnership with UNEP Finance Initiative and UN Global Compact), use this model.
Envision – Sustainable Infrastructure standard
A sustainable infrastructure rating system comprised of 60 TBL criteria in five categories: Quality of Life, Leadership, Resource Allocation, Natural World, and Climate and Risk.
Institute for Sustainable Infrastructure (ISI): http://sustainableinfrastructure.org/ envision/how-it-works/
Equator Principles (EPs)
These principles, created in 2003 by the IFC (World Bank), provide the financial services industry with a risk management framework for assessing and managing social and environmental risk.
Equator Principles: http://www.equator-principles.com/resources/equator_ principles_III.pdf
Eutrophication
This is defined as the presence of excessive nutrients in bodies of water and the effect over enrichment has on aquatic life. This phenomenon causes depletes oxygen (hypoxia) and algal blooms.
World Resources Institute (WRI): http:// www.wri.org/our-work/project/eutrophication-and-hypoxia/about-eutrophication
E-waste
This refers to discarded electronic devices—any device with a circuit board—that find their way into the landfill. The presence of both precious metals and hazardous materials makes recycling these devices at once lucrative and dangerous. Responsible recovery preserves resources while protecting human and ecosystem health.
“The Future of Electronic Waste Recycling in the United States: Obstacles and Domestic Solutions” by Jennifer Namias, 2013 http://www.seas.columbia. edu/earth/wtert/sofos/Namias_Thesis_07-08-13.pdf
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DEFINITION
USEFUL RESOURCES
This is a building standard developed by the World Excellence in Design for Greater EffiBank’s International Financial Corporation (IFC). ciencies (EDGE): https://www.edgebuildUsing the accompanying free software, developings.com/ ers in emerging markets can determine the most cost-effective options for building resource-efficient structures. Those buildings that demonstrate 20% efficiency improvements can become certified.
Extended Producer Responsibility (EPR)
These directives place significant end-of-life responsibility on manufacturers, in managing the post-consumer treatment and disposal of their products. Requirements may be financial and/or physical in nature.
Organization for Economic Co-operation and Development: http://www.oecd.org/ env/tools-evaluation/extendedproducerresponsibility.htm
Externalities
This is a term Economists use to refer to the large indirect costs that affect people but are not captured in prices. Without capturing these costs in market prices, people cannot make informed decisions. Carbon emissions provide an excellent example of how this negatively impacts society.
International Monetary Fund (IMF): http://www.imf.org/external/pubs/ft/ fandd/2010/12/basics.htm
Factor 10
This term states that within one generation, a 10-fold decrease in resource consumption, coupled with a 10-fold increase in efficiency would be required to achieve dematerialization.
The Global Development Research Center (GDRC): http://www.gdrc.org/ sustdev/concepts.html
Factor 4
This term states that, using existing methodologies, society can enjoy life twice as much on half the resources—effectively quadrupling resource efficiency.
The Global Development Research Center (GDRC): http://www.gdrc.org/ sustdev/concepts.html
Factor 5
A revision of earlier estimates, this term states that society has the potential of improving resource efficiency by 80%—a five-fold productivity improvement--using existing methodologies.
The Natural Edge Project: http://www. naturaledgeproject.net/factor5.aspx
Fair trade certification
Feebate
This certification supports sustainable development Fairtrade International (FLO): http:// among small producers and agricultural workers www.fairtrade.net/; Fairtrade USA: in the poorest countries. This type of mark, of http://fairtradeusa.org/ Fairtrade International (FLO), is used throughout Europe, Africa, Asia, Australia and New Zealand. Fairtrade USA is the equivalent mark used in North America. This is an approach to taxation whereby those practicing undesirable behavior are levied a fee, which gets rebated to those practicing the desirable behavior. This approach is thought to be an effective way of spurring innovation.
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Rocky Mountain Institute (RMI): http:// www.rmi.org/FeebatesKeyBreakingOilAddiction
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DEFINITION
USEFUL RESOURCES Thinking in Systems: A primer by Donella Meadows, 2008, pages 25-34; Thwink.org: http://www.thwink.org/sustain/glossary/FeedbackLoop.htm
Feedback loops
As one part of a system changes, other parts of the system react and respond, regulating system behavior as a whole. This term is the mechanism by which the system regulates and manipulates this change. This closed chain of causal connections forms when changes in a stock affect the flows in and out of that stock. These exhibit two kinds of behavior: positive (reinforcing) and negative (balancing).
Feed-in Tariff (FIT)
Modeled after Germany’s approach to driving the deployment of renewable energy, this type of tariff drives investment away from nonrenewable fuels. It provides fixed income payments to renewable energy developers—individuals and businesses alike—for the energy they produce.
Clean Energy Wire, “Defining features of the Renewable Energy Act (EEG),“ 2014: https://www.cleanenergywire. org/factsheets/defining-features-renewable-energy-act-eeg
Financial Capital
The International Integrated Reporting Council (IIRC) defines this as “the pool of funds that is available to an organization for use in the production of goods or the provision of services”. It also includes such things as stocks, bonds, and currency.
IIRC: http://integratedreporting.org/ wp-content/uploads/2013/03/IR-Background-Paper-Capitals.pdf
First Law of Thermodynamics
This is also known as the Law of Conservation of Energy, and states that all energy and mass in a system is conserved in some way—that the essence of a thing may change but nothing is either created or destroyed.
The Natural Step: http://www.thenaturalstep.org/sustainability/the-science-behind-our-approach/
Flows
These are the interconnections between elements of a system that change over time—the relationships that hold the system together.
Systemdynamics.org: http://www.systemdynamics.org/DL-IntroSysDyn/stock.htm
According to the UN Food and Agriculture Organization (FAO), “[this] exists when all people, at all times, have physical, social and economic access to sufficient, safe and nutritious food which meets their dietary needs and food preferences for an active and healthy life”.
UN Food and Agriculture Organization, ”Trade Reforms and Food Security: Conceptualizing the Linkages,” 2003: http://www.fao.org/docrep/005/y4671e/ y4671e06.htm
A key agreement arrived at by participants to the 1992 Earth Summit included these 15 non-legally binding principles.
Enviropedia: http://www.sustainable-environment.org.uk/Action/Forests.php
Food security
Forest Principles
Forest Stewardship Council (FSC)
This organization promotes environmentally sound, Forest Stewardship Council: https:// socially beneficial, and economically prosperous us.fsc.org/ management of the world’s forests. Third-party verifiers assess forest management practices and chain of custody operations, tracing wood products through the supply chain from the live tree to enduse. This eco-label can be found on furniture, lumber and building products, pulp and paper products, along with non-wood products derived from forests, such as cork and bamboo.
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Fossil fuel
Frameworks
Fugitive emissions
DEFINITION
USEFUL RESOURCES
These are formed through the process of anaeroGeological Association of Canada bic decomposition of buried plant matter, which (GAC): http://www.gac.ca/wp/wp-congradually transforms into minerals—including tent/uploads/2012/09/FossilFuels_e.pdf petroleum, natural gas, and coal. Because they consist mainly of hydrogen and carbon, they are also referred to as hydrocarbons. When excavated and burned to produce energy, the sequestered carbon gets released back into the atmosphere. Because the production process takes millions of years, these fuels are considered nonrenewable. A mental model comprised of several interconnected core concepts that help us to understand a system. These concepts stand alone, while supporting each other, together forming a philosophical foundation for planning.
Yosef Jabareen, “Building a Conceptual Framework: Philosophy, Definitions, and Procedure,” 2009: https://www.researchgate.net/publication/265991064_Building_a_Conceptual_Framework_Philosophy_Definitions_and_Procedure
Emissions releases, either intentional and unintentional, that result from leaks in equipment such as those coming from joints, seals, packing, gaskets, as well as emissions from coal piles, wastewater treatment, pits, cooling towers, gas processing facilities, etc.
GHG Protocol: A Corporate Accounting and Reporting Standard: http:// www.ghgprotocol.org/standards/corporate-standard
Future-Fit Business Benchmark
A business that meets this standard “is one that Future-Fit Business Benchmark: http:// in no way undermines the possibility that humans futurefitbusiness.org/resources/downand other life will flourish on Earth forever”. To loads/ organize around this goal, such businesses focus on developing practices required for tomorrow rather than meeting short-term goals or emulating the current best practices of peers. This standard defines 21 future-fit goals that address social and environmental challenges while improving business performance.
Genetically modified Organism (GMO)
This term describes any organism (plant, animal, microorganism, etc.) with an altered genetic code. The genetic engineering process produces transgenic species with the combined traits of donor organisms.
Union of Concerned Scientists: http:// www.ucsusa.org/our-work/food-agriculture/our-failing-food-system/genetic-engineering-agriculture#.V7rj7TWmD7g
Genuine progress indicator (GPI)
This indicator measures the economic welfare generated by economic activity by including the depreciation of community capital as an economic cost. Going beyond consumption (represented by GDP), this indicator accounts for income distribution, environmental costs, crime, pollution, volunteering, household work, among other activities.
“Beyond GDP: Measuring and achieving global genuine progress” by Ida Kubiszewski, et. al.: http://www.kysq.org/ docs/2013_Kubiszewski_GlobalGPI.pdf
Geoengineering
This term is defined by Oxford University’s Geoengineering Programme as “the deliberate large-scale intervention in the Earth’s natural systems to counteract climate change.” Approaches used include Solar Radiation Management (SRM) and Carbon Dioxide Removal (CDR).
Oxford Geoengineering Programme: http://www.geoengineering.ox.ac.uk/ what-is-geoengineering/what-is-geoengineering/
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Geothermal energy
This type of energy comes from heat generated within the Earth’s crust, where decaying radioactive material contains over 50,000 times more energy than world fossil fuel stores. Both deep well power plants and ground-source heat pumps harness this heat to generate electricity or create more efficient heating and cooling systems for buildings.
Union of Concerned Scientists: http:// www.ucsusa.org/clean_energy/our-energy-choices/renewable-energy/how-geothermal-energy-works.html#.V7sJizWmD7g
Global Reporting Initiative: https://www. globalreporting.org/
Global Reporting Initiative (GRI)
This is a standards body that puts forth criteria for sustainability reporting, in partnership with global organizations focused on quality, environment, and economics. Their sustainability reporting framework is used by a majority of the world's largest corporations.
Global Warming Potential (GWP)
Each greenhouse gas captures infrared radiation and “Global Warming Potential Values,” reflects it back out into the atmosphere at a differGHG Protocol: http://www.ghgprotocol. ent rate, thus having a different potential to warm org/calculation-tools/all-tools the Earth. This is the term normalizes this potential relative to carbon dioxide (CO2)—the least impactful off all GHGs. This makes it possible to compare their relative impacts on climate change. Microworld: http://www.microworld.org/ en/about-microworld/about-microcredit
Grameen bank (microcredit)
This bank project takes its name from the Bengali word for “Village bank”. Created in Bangladesh in the mid-1970s, it marked the beginning of modern-day microfinancing. This type of microcredit lending funds for self-employment projects that generate enough income for the borrower to care for themselves and their families.
Green bonds
A tax-exempt debt instrument used by qualified organizations or municipalities to finance the development of brownfield sites. Often abandoned or underutilized, by definition these sites contain low levels of industrial pollution.
World Bank: http://treasury.worldbank. org/cmd/htm/WorldBankGreenBonds. html
World Green Building Council: http:// www.worldgbc.org/activities/net-zero/
Green building
This term refers to a movement to create healthier indoor environments in structures built with environmental health in mind. Worldwide, over 100 councils working to drive progress toward a net-zero built environment.
Green power
A generic term for renewable energy along with specific clean energy technologies that emit fewer GHG emissions than other energy supplying the grid.
GHG Protocol: A Corporate Accounting and Reporting Standard http:// www.ghgprotocol.org/standards/corporate-standard
Green Seal
Developed using transparent science-based enviGreen Seal: http://www.greenseal.org/ ronmental protocols this ecolabel provides assurance that the rated product meets rigorous sustainability criteria. This certification has more than 55 standards across 12 product and service categories, such as: household products, construction materials & equipment, and paints & coatings.
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DEFINITION
Green Star (Australia)
Run by the Green Building Council Australia, this is a green building assessment and product certification program. Projects can earn certification in any of four categories: Communities, Design & As Built, Interiors, and Performance.
Green Building Council Australia (GBCA): http://new.gbca.org.au/greenstar/rating-system/
This phenomenon results when heat becomes trapped in the Earth’s lower atmosphere and is prevented from escaping into space.
University Corporation of Atmospheric Research, National Center for Atmospheric Research: https://www.ucar.edu/ learn/1_3_1.htm
Greenhouse effect
When present in the atmosphere, these gases absorb and emit radiation within the thermal infrared range, contributing to the greenhouse effect. Certain of these, reported under the Kyoto Protocol, Greenhouse gas (GHG) that result from human activities include: CO2, CH4, N2O, HFCs, SF6, NF3, PFCs, and HFCs. The IPCC Assessment Reports periodically update the gases that parties to the Kyoto Protocol must report upon.
USEFUL RESOURCES
Required Greenhouse Gases in Inventories, Accounting and Reporting Standard Amendment, February, 2013: http:// www.ghgprotocol.org/standards/corporate-standard
GHG Protocol: http://ghgprotocol.org/ standards
Greenhouse Gas (GHG) Protocol
Developed by World Resources Institute (WRI) and World Business Council on Sustainable Development (WBCSD), this protocol provides a global standard for measuring, managing, and reporting on greenhouse gas emissions. In addition to their Corporate Standard, they provide industry specific guidance on Scope 3, Supply Chain, Product Life Cycle, and reduction Project accounting.
Greenhouse gas inventory
An organization’s (or city’s) accounting of the quantity of greenhouse gases emitted and removed from the atmosphere, including all sources and sinks for which they are responsible.
ISO 14064-1: 2006: https://www.iso.org/ obp/ui/#iso:std:iso:14064:-1:ed-1:v1:en
Greenwashing
Modeled after the term “whitewashing,” this term describes the marketing practice of making unsubstantiated sustainability claims.
The Greenwashing Index: http://greenwashingindex.com/about-greenwashing/
This is an index of a country’s economic output—the economic value of all goods and services, derived by tallying either all income received or Gross domestic product all money spent. It is used to determine a nation’s (GDP) level of prosperity. Calculated by summing recorded market transactions, many consider it an inaccurate indicator of progress because it ignores social costs, environmental impacts and income inequality.
Gross national happiness (GNH)
Bhutan uses this metric as an indicator of national prosperity. Its calculation involves an assessment of the people’s “wellbeing in things like community, culture, governance, knowledge and wisdom, health, spirituality and psychological welfare, a balanced use of time, and harmony with the environment”.
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Robert Costanza, et al,, “Development: Time to leave GDP behind,” Nature, 2014: http://www.nature.com/news/ development-time-to-leave-gdp-behind-1.14499
Centre For Bhutan Studies & GNH Research: http://www.grossnationalhappiness.com/
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DEFINITION
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Gross national product (GNP)
Derived by tallying all the income generated by companies and individuals residing within a country’s boundaries, this is an indicator used to assess the economic position of a given country. The calculations are net of foreign investment.
Investopedia: http://www.investopedia. com/terms/g/gnp.asp
Habitat
This is defined as the environment where an organism or group of organisms, including flora and fauna, normally live. That environment includes both living and nonliving things.
Encyclopedia Britannica: https://www. britannica.com/science/habitat-biology
Habitat III
Convened in 2016, under the auspices of the UN, UN, Habitat III: https://habitat3.org/ this was the third conference focusing on the consequences of rapid urbanization. The goal of these conferences is to promote a new model of urban development that can integrate all facets of sustainable development—promoting equity, welfare and shared prosperity. These principles underpin many green building standards. Developed by William McDonough in 1992, they governed his design of The World’s Fair, EXPO 2000, held in Hannover, Germany.
William McDonough & Partners, “The Hannover Principles: Design for Sustainability,” 2000: http://www.mcdonough. com/wp-content/uploads/2013/03/Hannover-Principles-1992.pdf
Heavy metals
Toxic metals, such as arsenic, lead, and mercury have harmful effects on human health when found in large quantities.
US Department of Labor: https://www. osha.gov/SLTC/metalsheavy/
Hierarchy of needs
Because the Brundtland commission did not elaborate upon how society might meet their needs, many have used this theory of human motivation to understand this aspect of sustainability. According to this theory, the main categories of need, in order of importance, are: Physiological; Safety; Love & belonging; Esteem; and Self-actualization.
John C. Ayers, “The Sustainability Revolution: A scientific analysis of beneficial changes for societies, communities, and individuals,” 2011: http://www.vanderbilt.edu/Sustainability/book/S1C1_handout.pdf
Human Capital
The International Integrated Reporting Council (IIRC) describes this as “people’s competencies, capabilities and experience, and their motivations to innovate”.
IIRC: http://integratedreporting.org/ wp-content/uploads/2013/03/IR-Background-Paper-Capitals.pdf UN: http://www.un.org/en/universal-declaration-human-rights/
Human rights
In their related declaration of 1948, the UN defined these as the rights of all members of the human family. They include the right to inherent dignity and the equal and inalienable rights of freedom, justice and peace.
Hannover Principles
Hydrofluorocarbon (HFC)
Hydropower
This is one of the greenhouse gases that nations “Global Warming Potential Values,” are required to track under the Kyoto Protocol. GHG Protocol: http://www.ghgprotocol. According to the IPCC’s Fifth Assessment Report org/calculation-tools/all-tools (AR5) it has a global warming potential that ranges from 4 to 12,400 over a 100 year time horizon. A form of renewable energy that harnesses the flow of water to generate electricity.
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Environmental and Energy Study Institute: http://www.eesi.org/topics/water-hydropower-wave-power/description
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Inclusive business
Indicator
DEFINITION
USEFUL RESOURCES
A term that refers to sustainable business solutions WBCSD Inclusive Business: http://www. that expand access to goods, services, and liveliinclusive-business.org/inclusive-business. hood opportunities for low-income communities in html commercially viable ways. Going beyond philanthropy, this type of business melds development and business goals to deliver higher socio-economic value to communities. This provides data about a topic or situation, which Donella Meadows, “Indicators and strategists and managers use to understand the Information Systems for Sustainable world, inform decisions, and plan for actions. Development,” 1998: http://www.iisd. org/pdf/s_ind_2.pdf Indigenous Peoples’ Literature: http:// www.indigenouspeople.net/
Indigenous people
This group of individuals is defined as having a set of specific rights based on their historical ties to a particular territory—culturally and historically distinct from the majority populations with political dominance.
Indirect emissions
Emissions that result from the activities of a reporting entity, but occur at sources owned or controlled by another entity. They are associated with the purchase of electricity.
GHG Protocol: A Corporate Accounting and Reporting Standard: http:// www.ghgprotocol.org/standards/corporate-standard
Indoor air quality (IAQ)
This term refers to the environmental condition World Health Organization: http://www. of spaces in and around buildings particularly as it who.int/mediacentre/factsheets/fs313/en/ relates to human health. Most countries regulate allowable levels of six criteria pollutants that may contaminate these spaces: Carbon monoxide, Nitrogen dioxide, Photochemical oxidants (as ozone), Sulfur dioxide, Lead, and Particulate Matter (PM2.5 and PM10).
Industrial ecology
The study of industry, viewed as an ecosystem, with The Global Development Research the inflow and outflow of resources interconnected Center (GDRC): http://www.gdrc.org/ as in nature. This concept lies at the heart of circu- sustdev/concepts/16-l-eco.html lar economy and cradle-to-cradle thinking.
Intellectual Capital
The International Integrated Reporting Council (IIRC) describes this as “organizational, knowledge-based intangibles”, which includes intellectual property, systems and procedures, and brand reputation.
One of the principles of environmental law. This concept describes the obligation of current generIntergenerational equity ations to protect environmental health, diversity and productivity for the benefit of future generations.
International emissions trading
The Kyoto Protocol created this commodity market for greenhouse gases. It allows countries to monetize any excess capacity by selling their “assigned amount units” (AAUs) to countries that have exceeded their targets. In addition, Annex B countries may trade RMUs, EURs, and CERs on this market.
www.sustainabilityprofessionals.org
IIRC: http://integratedreporting.org/ wp-content/uploads/2013/03/IR-Background-Paper-Capitals.pdf
Environmental Defenders Office (NT) Inc: http://edont.org.au/factsheets/guiding-principles-environment-law/
Kyoto Protocol Reference Manual: http://unfccc.int/resource/docs/publications/08_unfccc_kp_ref_manual.pdf
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International Labour Organization (ILO)
Established in 1919, this is the only tripartite UN agency. It brings together governments, employers and workers representatives to set standards, develop policies, and build programs that support worker rights.
International Labour Organization (ILO): http://www.ilo.org/global/aboutthe-ilo/lang--en/index.htm
International Organization for Standards (ISO)
An international NGO that works with hundreds of national bodies to develop specifications for products, services, and systems. They have developed more than 21,000 international standards, including several that relate to sustainability: ISO 14000; ISO 19011; and ISO 26000.
Standards may be found through ISO’s Online Browsing Platform: https://www. iso.org/obp/ui/#home
This “equation” expresses a causal relationship between total population (P), affluence (A), technology (T), and environmental impact (I). While overly simplified the construct of a multiplicative relationship between these elements has led to a broader understanding of environmental challenges such as climate change.
The Sustainable Scale Project: http:// www.sustainablescale.org/ConceptualFramework/UnderstandingScale/MeasuringScale/TheIPATEquation.aspx
A family of standards that provide guidance on developing environmental management systems (EMS) (ISO 14001, ISO 14004, ISO 14006) and greenhouse gas reporting (14064).
Standards may be found through ISO’s Online Browsing Platform: https://www. iso.org/obp/ui/#home
Provides guidance on internal and external auditing procedures for management systems.
Standards may be found through ISO’s Online Browsing Platform: https://www.iso.org/obp/ui/#iso:std:iso:19011:ed-2:v1:en
Provides guidance on the social responsibility of businesses and other organizations.
Standards may be found through ISO’s Online Browsing Platform: https://www.iso.org/obp/ui/#iso:std:iso:26000:ed-1:v1:en
Established by the Kyoto Protocol, this mechanism encourages the implementation of collaborative climate change mitigation projects between two Annex 1 countries. It allows for the creation, acquisition and transfer of “emission reduction units” (ERUs).
Climate Change: Guide to Kyoto Protocol Project Mechanisms, Volume C: http://www.ffem.fr/ jahia/webdav/site/ffem/shared/ELEMENTS_COMMUNS/U_ADMINISTRATEUR/5-PUBLICATIONS/ Changement_climatique/GuideC_projets_Kyoto_angl.pdf
An international agreement, linked to the United Nations Framework Convention on Climate Change (UNFCCC), which commits the parties to binding emissions reductions. It created 3 mechanisms to reduce GHGs: International Emissions Trading; Clean Development Mechanism (CDM); and Joint Implementation (JI).
UN Framework Convention on Climate Change: http://unfccc.int/kyoto_protocol/items/2830.php
IPAT
ISO 14000
ISO 19011
ISO 26000
Joint implementation (JI)
Kyoto Protocol, or Kyoto Accord
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Land use, land-use change and forestry (LULUCF)
Leadership in Energy and Environmental Design (LEED)
Lean manufacturing
DEFINITION
These activities impact the biosphere’s ability UNFCCC: http://unfccc.int/land_use_ to absorb carbon (act as a “sink”). Furthermore, and_climate_change/lulucf/items/1084. because forests sequester carbon, they can be a sig- php nificant “source” of carbon emissions. Despite the relatively short-term nature of such activities, they play a significant role in climate change mitigation. As a result, both the Kyoto Protocol and UNFCCC address issues related to these activities. A green building rating system developed by the US Green Building Council (USGBC).
Leverage points
Life cycle costing (LCC)
Life cycle thinking
US Green Building Council: http://www. usgbc.org/
A whole-system philosophy of production, develAmerican Association for Quality: oped by Toyota, that strives to eliminate all waste http://asq.org/pub/sixsigma/past/vol2_isfrom the system. Key aspects of this philosophy sue1/youropinion.html include just-in-time inventory management and “jidoka”—the system safely stops when work completes or a problem arises. A related approach, Six Sigma developed by Motorola, includes elements of financial accountability. Places to intervene in a system to create change.
Life Cycle Assessment (LCA)
USEFUL RESOURCES
Donella Meadows, “Leverage Points: Places to Intervene in a System,” circa 1972: http://donellameadows.org/archives/leverage-points-places-to-intervene-in-a-system/
A tool to measure, assess and manage the perforISO: https://www.iso.org/obp/ui/#iso:stmance of a product from raw materials through d:iso:14040:ed-2:v1:en production, use, and end-of-life phases. The process entails compiling data on the inputs and outputs of a system, in order to evaluate the potential impacts that will result throughout its life cycle. This refers to the practice of looking at the relative US General Services Administrabenefits and drawbacks of a given financial decision tion: http://www.gsa.gov/portal/conbased on a full range of related expenditures over tent/101197 the long-term. Capital outlays, operating expenses, and disposal fees are all included in such an analysis. A term used by sustainability professionals to help managers understand that there is a complete spectrum of impact quantification, with LCA at one end and pure qualitative analysis at the other.
A phenomenon found in developed nations throughout the Americas, Europe, and Asia, This term describes both a market sector and a consumLifestyles of health & er demographic. The marketplace of goods and sustainability (LOHAS) services relate to all aspects of sustainable living— health, environmental responsibility, social justice, and personal development.
www.sustainabilityprofessionals.org
The Life Cycle Initiative: http://www. lifecycleinitiative.org/starting-life-cycle-thinking/what-is-life-cycle-thinking/ Lifestyles of health & sustainability (LOHAS): http://www.lohas.com.au/ what-lohas
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DEFINITION
The Club of Rome: http://www.clubofrome.org/report/the-limits-to-growth/
Limits to Growth
Published by the Club of Rome in 1972, this was a controversial paper, authored by a team at MIT, working under Jay W. Forrester. Controversial at the time, the team used computer modeling to simulate the impact on the biosphere of continued economic and population growth. Their findings showed that the carrying capacity of the Earth could not withstand the then-current rates beyond 2100, without experiencing irreversible collapse.
MIT: http://livingwage.mit.edu/
Livable wage
The term describes the compensation needed to provide for the most basic of human needs. It permits, families to live locally, based on the local cost of living.
The Living Building Challenge: http:// living-future.org/lbc
Living Building Challenge™
This is the most rigorous performance standard for the built environment. It calls for building projects that operate as cleanly, beautifully, and efficiently as nature does. Rather than meeting standards at a single point in time, projects must demonstrate performance of a period of at least 12 months of occupancy.
Local Action for Sustainable Economic Renewal (LASER)
A process developed by Natural Capitalism Solutions and Global Community Initiatives for government sustainable economic development planning, using a framework for sustainability based on the development of ten forms of capital necessary for sustained prosperity.
Natural Capitalism Solutions: http://natcapsolutions.org/resource-library/tools/ laser-local-action-for-sustainable-economic-renewal/#.V5qEeY689Eo
BOND: http://www.gdrc.org/ngo/logical-fa.pdf
Logical framework approach (LFA), or logframe
This approach to project planning follows a hierarchical planning methodology that focuses on the achievement of one project purpose. Represented graphically this approach uses a matrix that helps develop measurable indicators, means of verification, and key assumptions for each aspect of the project plan: Objectives & Goals; Project Purpose; Desired Results; Intervention Activities along with their costs and expected returns.
Low impact development (LID)
This refers to an urban planning approach to property development that ensures proper stormwater management. Practices include close to the source design strategies that mimic natural hydrology such as rain gardens, bioswales, and permeable paving.
City of Edmonton: https://www.edmonton.ca/city_government/environmental_ stewardship/low-impact-development. aspx
The International Integrated Reporting Council (IIRC) defines this as physical objects that are created by an organization and “are available to an organization for use in the production of goods or the provision of services, including: buildings, equipment, and infrastructure”.
IIRC: http://integratedreporting.org/ wp-content/uploads/2013/03/IR-Background-Paper-Capitals.pdf
Manufactured Capital
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Materiality
A fundamental principle of financial disclosure, this test (as defined by the US Supreme Court) determines whether there is “a substantial likelihood that the disclosure of the omitted fact would have been viewed by the reasonable investor as having significantly altered the ‘total mix’ of information made available”.
Melbourne Principles for Sustainable Cities
USEFUL RESOURCES Sustainability Accounting Standards Board: http://www.sasb.org/materiality/ important/
These principles were developed in 2002 with the Sustainable Melbourne: http://www.sushelp of by UNEP and ICLEI and offer sustainability tainablemelbourne.com/visions/the-melplanning guidance to urban areas. bourne-principles-for-sustainable-cities/ Thwink.org: http://www.thwink.org/sustain/glossary/SystemsThinking.htm
Mental models
This is an abstract representation of a system—of something in the real world that we want to better understand—constructed in our imaginations. Cultivating the ability to think about the underlying structure and function of a system, through the use of these, is critical to successful sustainable development.
Methane (CH4)
This is one of the greenhouse gases that nations are required to track under the Kyoto Protocol. According to the IPCC’s Fifth Assessment Report (AR5) it has a global warming potential of 28 over a 100 year time horizon.
“Global Warming Potential Values,” GHG Protocol: http://www.ghgprotocol. org/calculation-tools/all-tools
Metric tonnes
All GHG measurement is reported in this unit. It is approximately equal to 1.1 short tons or 2,205 pounds. This unit of measure is the most widely used unit of measure when reporting under the UNFCCC and is required when reporting under the GHG Protocol.
UNFCCC: http://unfccc.int/ghg_data/ online_help/frequently_asked_questions/ items/3826.php
Metrics
Millennium Development Goals (MDG)
These are quantitative data that allow us to quanti- Investopedia: http://www.investopedia. fy indicators so we can measure, compare, and track com/terms/m/metrics.asp performance. In 2000, the UN began developing a concrete set UN: www.un.org/millenniumgoals/ of actions aimed at ending poverty, hunger, and disease around the world. Out of this process arose a set of eight goals to be achieved by 2015. In 2016, they were replaced with the Sustainable Development Goals (SDGs). UNEP: http://www.unep.org/maweb/en/ index.aspx
Millennium Ecosystem Assessment (MA)
This UN assessment was Initiated in 2001 to develop a scientific basis for action to conserve ecosystem resources and implement sustainable use policies. Assessment of the consequences of ecosystem change on human wellbeing included an appraisal of ecosystem services and suggested options for restoring, conserving, or enhancing the sustainable use of ecosystems.
Mindset
A deeply held belief. Evolving from a long-held belief structure to a new and unfamiliar paradigm is very difficult.
Carol Dweck: http://mindsetonline.com/ whatisit/about/
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Mobile combustion
Montreal Protocol
DEFINITION
USEFUL RESOURCES
This is a tool for addressing the root cause of negative social or environmental impacts, thereby diminishing the potential for damage before it occurs.
NASA: http://climate.nasa.gov/solutions/adaptation-mitigation/
Combustion of fuels in transportation devices such as automobiles, trucks, buses, trains, airplanes, boats, ships, barges, vessels, etc.
GHG Protocol: A Corporate Accounting and Reporting Standard: http:// www.ghgprotocol.org/standards/corporate-standard
Widely considered one of the most effective UNEP: http://unep.ch/ozone/pdf/Monenvironmental agreements, this protocol set forth treal-Protocol2000.pdf a timetable for the mandatory phase-out of all ozone depleting substances. Included among these substances are CFCs, halons and HCFCs, chemicals with high global warming potential. This is a structured process, used to ensure that a range of perspectives are included in decision-making.
UNDP: http://www.undp.org/content/ undp/en/home/librarypage/capacity-building/accountability/multi-stakeholder-engagement-processes.html
Nanomaterials
These contain nanoparticles—particles measuring less than 100 nanometers in at least one direction. (One nanometer = One billionth of a meter.)
EUROPA Public Health: http://ec.europa.eu/health/scientific_committees/opinions_layman/nanomaterials/en/
Natural Capital
The International Integrated Reporting Council (IIRC) describes this as “all renewable and nonrenewable environmental stocks that provide goods and services that support the current and future prosperity of an organization”.
IIRC: http://integratedreporting.org/ wp-content/uploads/2013/03/IR-Background-Paper-Capitals.pdf
This is an economic model that highlights the critical relationship between society and the ecosystem expressed in economic terms. It allows decision-makers to consider Earth’s carrying capacity and the risks associated with the limits to growth. Four central strategies of this concept can help countries, companies, and communities to thrive: Radical resource productivity; Biomimicry; Service and flow economy; Invest in natural capital.
Natural Capitalism: Creating the Next Industrial Revolution by Paul Hawken, Amory Lovins, and L. Hunter Lovins. Back Bay Books, 1999.
This is a saved unit of electricity.
Rocky Mountain Institute (RMI): http:// www.rmi.org/Knowledge-Center/Library/ E90-20_NegawattRevolution
This describes the practice of balancing production and consumption. Measured on an annual basis, buildings with an energy footprint described with this term use onsite renewable energy to generate all energy consumed. Those with this size carbon footprint produce no carbon emissions.
Whole Building Design Guide (WBDG): https://www.wbdg.org/resources/net-zero-energy-buildings
Multi-stakeholder engagement
Natural capitalism
Negawatt
Net-zero
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Nitrogen cycle
DEFINITION
USEFUL RESOURCES
A series of processes move nitrogen and its comKimball's Biology Pages: http://www.biolpounds through the biosphere, interconverting ogy-pages.info/N/NitrogenCycle.html the environment with all living organisms. While nitrogen makes up nearly 80% of the air we breathe and is a vital nutrient for plants, most organisms cannot use nitrogen in its pure form. Processes such as nitrogen fixation and decomposition that occur in the nitrogen cycle help make this resource usable to living things.
Nitrogen Trifluoride (NF3)
This is one of the greenhouse gases that nations are required to track under the Kyoto Protocol. According to the IPCC’s Fifth Assessment Report (AR5) it has a global warming potential of 16,100 over a 100 year time horizon.
“Global Warming Potential Values,” GHG Protocol: http://www.ghgprotocol. org/calculation-tools/all-tools
Nitrous oxide (N2O)
This is one of the greenhouse gases that nations are required to track under the Kyoto Protocol. According to the IPCC’s Fifth Assessment Report (AR5) it has a global warming potential of 265 over a 100 year time horizon.
“Global Warming Potential Values,” GHG Protocol: http://www.ghgprotocol. org/calculation-tools/all-tools
North American Free Trade Agreement (NAFTA)
A 1994 trade agreement, between the US, Canada, and Mexico, which eliminated most tariffs on products traded between the parties. Twenty years later, the impact on jobs and wages remains a point of contentious debate in all three economies.
Council on Foreign Relations: http:// www.cfr.org/trade/naftas-economic-impact/p15790
Union of Concerned Scientists: http:// www.ucsusa.org/nuclear-power/nuclear-power-technology/how-nuclear-power-works#.V_QXZCRp1W0
Nuclear power
This energy is generated through fission—a process that uses neutrons to break apart an atom’s nucleus. Upon breakup, these neutrons collide with other atoms, causing a chain reaction. Large, heavy, relatively weak, and unstable, uranium is an ideal element to fuel this process. Its instability makes uranium highly radioactive, with a half-life of 4.5 billion years. One pound of uranium can produce as much power as 3 million pounds of coal.
Ocean acidification (OA)
Sometimes called “the other carbon problem,” this results when the pH balance of seawater drops as a result of becoming supersaturated with calcium carbonate. Balanced absorption of CO2 into seawater is important to the ocean’s ecosystem, strengthening the skeletons and shells of marine organisms.
Pacific Marine Environmental Laboratory, NOAA: http://www.pmel.noaa.gov/ co2/story/What+is+Ocean+Acidification%3F
Operational boundary
When developing a GHG inventory, an organization performs an assessment of this to determine which direct and indirect emissions are a consequence to operations and therefore must be reported upon.
GHG Protocol: A Corporate Accounting and Reporting Standard: http:// www.ghgprotocol.org/standards/corporate-standard
Organizational boundary
When developing a GHG inventory, an organization performs an assessment of this to determine the method by which they will consolidate their emissions inventory—using either an equity or control approach.
GHG Protocol: A Corporate Accounting and Reporting Standard: http:// www.ghgprotocol.org/standards/corporate-standard
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Ozone (O3)
Ozone depleting substance (ODS)
Pareto Principle
Perfluorocarbon (PFC)
DEFINITION
USEFUL RESOURCES
This gas, composed of three atoms of oxygen, Air Now: http://www.airnow.gov/index. occurs both at ground level and in the upper atcfm?action=aqibasics.ozone mosphere. In the upper atmosphere, it protects the Earth’s surface from harmful UV rays. When found at lower levels, it is a volatile organic compound (VOC), created through chemical processes, which can be harmful to human health. The Montreal Protocol agreement set regulations to curb the use of compounds that produce this gas. In addition to tracking GHGs, the IPCC Assessment Reports track anthropogenic gases that have the potential to deplete the Earth’s atmospheric ozone layer. Used widely in refrigeration and as solvents, these gases are covered under the Montreal Protocol.
Australian Government, Department of the Environment and Energy: https:// www.environment.gov.au/protection/ ozone/ozone-depleting-substances
Named after an early 20th century economist, this principle holds that 80% of effects come from 20% of causes. Used as a general rule of thumb, the so called “80/20 Rule” provides guidance on where to focus limited resources for maximum benefit.
Melissa G. Hartman, “Separate the Vital Few From the Trivial Many,” Society for Quality, 2001: http://asq.org/quality-progress/2001/09/problem-solving/ separate-the-vital-few-from-the-trivialmany.html
This is one of the greenhouse gases that nations “Global Warming Potential Values,” are required to track under the Kyoto Protocol. GHG Protocol: http://www.ghgprotocol. According to the IPCC’s Fifth Assessment Report org/calculation-tools/all-tools (AR5) it has a global warming potential that ranges from 6,630 to 17,400 over a 100 year time horizon.
Permaculture
A combination word derived by combining “perma- A Permaculture Design Course Handnent” and “agriculture,” this approach to farming book: https://treeyopermacultureedu. uses a philosophy of working with, rather than wordpress.com against nature. Using a systems approach, these techniques were first developed in Australia by Bill Mollison and David Holmgren.
Persistent organic pollutants (POPs)
These chemicals are resistant to environmental Stockholm Convention: http://chm. degradation through chemical, biological, and pops.int/TheConvention/ThePOPs/taphotolytic processes. Over time, they persist, bioac- bid/673/Default.aspx cumulating with potentially significant impacts on human health and the environment.
Photosynthesis
Photovoltaic
This is the process by which plant cells capture en- The Natural Step: http://www.thenatuergy from the sunlight and convert it to energy. It is ralstep.org/sustainability/the-science-bethe only aspect of the Earth that is an open system, hind-our-approach/ gaining energy from the sun. According to The Natural Step, this process “pays the bills,” creating structure and order. This technology is used to convert light directly NASA: http://science.nasa.gov/sciinto electricity at the atomic level. When photons ence-news/science-at-nasa/2002/solarof light hit certain types of material, the photoelec- cells/ tric effect causes them to release electrons, resulting in an electric current.
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CORE CONCEPT Pigouvian Tax
Polluter pays principle
DEFINITION
USEFUL RESOURCES
This tax is levied on companies that pollute or incur excessive social costs through their business practices.
Library of Economics and Liberty: http:// www.econlib.org/library/NPDBooks/ Pigou/pgEW.html
This principle holds that the cost of mitigating negative impacts should be borne by the entity responsible for their emission.
UNEP: http://www.unep.org/delc/ Portals/119/publications/Judicial-Handbook-Environmenal-Law.pdf
Pollution prevention (P2)
This refers to a set of practices designed to reduce National Pollution Prevention Roundtapollution at its source, also known as “source reduc- ble: http://www.p2.org/about/what-is-poltion” techniques. lution-prevention/
Polychlorinated biphenyl (PCB)
A mixture of chlorinated compounds, this manEuropean Commission: http://ec.europa. made chemical is known to be carcinogenic and eu/environment/waste/pcbs/ cause both neurobehavioral and immunological changes in children. These Persistent Organic Pollutants (POPs) have been banned or severely restricted across the world due to their negative impacts. Disposal of these chemicals requires special handling to ensure their toxic waste does not make it into the ecosystem. In its flexible form this substance is familiarly known as vinyl. In its rigid form it is used in construction for plumbing pipes. Upon combustion, it produces hydrogen chloride (HCL). Evidence suggests that, throughout its entire life cycle, this chemical is responsible for a greater share of the nation’s annual dioxin burden than any other industrial product.
EPA: https://www.epa.gov/haps/ health-effects-notebook-hazardous-air-pollutants
Precautionary principle
This principle holds that where there is a potential threat of serious or irreversible damage, a lack of certainty should not be used to justify postponing cost-effective action.
UNEP: http://www.unep.org/documents. multilingual/default.asp?documentid=78&articleid=1163
Principles of Natural Systems
These principles, attributed to the Australian ecologist, Charles Birch hold that: nothing grows forever; continuation of life depends on the cycles of essential elements; the probability of extinction is greatest when population density is very high or very low; despite complexity, chances of survival and reproduction depend on only a few factors; our ability to change the Earth increases faster than our ability to foresee the consequences change; and living organisms are not a means but an ends—they have intrinsic value.
Bill Mollison, “Extracts from Permaculture: A designers Manual,” 1988: http:// garden.menoyot.com/assets/blogAssets/ garden/Bill_Mollison_Principles_and_ Systems.pdf
Process emissions
Emissions resulting from physical or chemical processes such as CO2 from the calcination step in cement manufacturing, CO2 from catalytic cracking in petrochemical processing, PFC emissions from aluminum smelting, etc.
GHG Protocol: A Corporate Accounting and Reporting Standard: http:// www.ghgprotocol.org/standards/corporate-standard
Polyvinyl chloride (PVC)
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DEFINITION
USEFUL RESOURCES
Product environmental footprint (PEF)
This is a kind of life cycle assessment that focuses primarily on environmental impacts. Used more commonly than LCA in Europe, the EU is seeking to standardize this assessment approach in the same way they have done for hazardous materials with REACH.
European Commission: http://ec.europa. eu/environment/eussd/pdf/footprint/ PEF%20methodology%20final%20draft. pdf
Product stewardship
Protocols
Radical resource productivity
Rainforest Alliance
Recycle
IUCN Red List of Threatened Species
Regulation on Registration, Evaluation, Authorization & Restriction of Chemicals (REACH) Reinforcing loop
Sometimes used synonymously with Extended Northwest Product Stewardship Council: Producer Responsibility (EPR), this environmenhttp://productstewardship.net/about/ tal management strategy assigns responsibility for what-product-stewardship minimizing the environmental impact of a product. Such responsibility may lie with the designer, producer, vendor, or user—whoever has the greatest ability to affect its impact throughout its life cycle. Most often responsibility lies with the producer. Separate, more detailed legal instruments than framework conventions, these documents provide a template for subsequent diplomatic transactions, serving as a draft that is subject to further refinement. To be legally binding, they must be signed and ratified by the parties of a convention.
UN, NZCEL and SPREP, “Multilateral Environmental Agreement: Negotiator’s Handbook Pacific Region 2013”: http:// www.sprep.org/attachments/Publications/ EMG/MEA_Handbook_2013.pdf
Increase productivity to slow resource depletion and pollution while creating jobs and lowering business costs.
Natural Capitalism: Creating the Next Industrial Revolution by Paul Hawken, Amory Lovins, and L. Hunter Lovins. Back Bay Books, 1999.
This international NGO focuses its work on bioRainforest Alliance: http://www.rainfordiversity and the livelihoods of those who depend est-alliance.org/ on it. They also certify products and services that are derived from sustainable farms and forests. The organization is a leader in helping to address the climate change issues associated with deforestation. This waste reduction strategy is used to reduce the quantity and improve the quality of materials heading to landfills.
ASTM: http://www.astm.org/SNEWS/ SO_2008/wilhelm_so08.html
Internationally recognized as the most comprehen- International Union for Conservation sive catalogue of taxonomic, conservation status, of Nature and Natural Resources: http:// and distribution information on plants, fungi and www.iucnredlist.org/about/overview animals. Listings of “Critically Endangered,” “Endangered,” and “Vulnerable” indicate which species face a higher risk of global extinction. This EU regulation is designed to protect human and environmental health from chemical exposure. The legislation also contains provisions relating to the use of animals in research.
European Chemicals Agency (ECHA): https://echa.europa.eu/regulations/reach
These are also known as positive feedback loops, and generate exponential growth or collapse at an increasing rate. This runaway behavior strengthens with each iteration.
Thwink.org: http://www.thwink.org/ sustain/glossary/FeedbackLoop.htm
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DEFINITION
Removal unit (RMU)
A tradeable commodity under the Kyoto Protocol, this instrument represents one metric ton of GHG reduction through land use, land-use change and forestry (LULUCF) activities, like reforestation.
USEFUL RESOURCES Kyoto Protocol Reference Manual: http://unfccc.int/resource/docs/publications/08_unfccc_kp_ref_manual.pdf
Renewable energy
This refers to energy production fueled by resources US DOE, The Green Power Network: that nature can replenish at a rate equal to or great- http://apps3.eere.energy.gov/greenpower/ er than it is used. “Clean” energy further includes markets/certificates.shtml the ability of nature to absorb the emissions created during the life cycle of the fuel.
Renewable energy certificate (REC)
Sold in the voluntary emissions trading markets, this type of offset represents an amount of CO2e emissions saved by using renewable energy to produce electricity. Rather than having a face value of one tonne of CO2e emissions, they can be purchased in varying denominations.
Resiliency
US DOE, The Green Power Network: http://apps3.eere.energy.gov/greenpower/ markets/certificates.shtml
This term describes the ability of a system to Resilience Center, Ohio State Univerbounce back—to survive, adapt, and thrive in the sity: http://resilience.osu.edu/CFR-site/ face of change. It is a critical element of those com- concepts.htm plex systems that persevere over time. European Commission: http://ec.europa. eu/environment/waste/rohs_eee/index_en.htm
Restriction of Hazardous Substances (RoHS) Directive
Enacted in 2003, this EU directive is targeted at reducing electronic waste by promoting its recycling through take-back programs. Closely linked with the EU’s Waste Electrical and Electronic Equipment Directive (WEEE), the law requires the replacement of heavy metals and certain flame retardants with safer alternatives. Since its passage other countries and jurisdictions have passed similar legislation.
Rio Declaration on the Environment and Development
This declaration defined a series of principles governing the rights of people to development, and their responsibilities of States to safeguard the common environment.
UN Environment Programme: http:// www.unep.org/documents.multilingual/ default.asp?documentid=78&articleid=1163
Rio Earth Summit
This is the common name for a conference that was held in Rio de Janeiro in 1992. During its convening of 172 governments, parties sought to rethink economic development. The conference resulted in 5 pivotal outcomes: Rio Declaration on Environment and Development; Agenda 21; Statement of Land Resources: Deforestation; UN Framework Convention On Climate Change; UN Convention on Biological Diversity.
Stephanie Meakin, “The Rio Earth Summit: Summary of the UN Conference on Environment & Development,” 1992: http://publications.gc.ca/Collection-R/ LoPBdP/BP/bp317-e.htm
Sarbanes-Oxley (SOX Act)
Enacted in 2002 by the US Congress, this act is intended to protect investors from fraudulent accounting practices by public corporations. Initially viewed abroad as a barrier to trade, other countries have since enacted similar laws, such as the 8th Company Law Directive of the EU.
Oslo University: https://oda.hio.no/jspui/ bitstream/10642/463/2/Dagnew_Iman. pdf
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DEFINITION
USEFUL RESOURCES
Scope 1
This group of emissions encompasses direct emissions from sources within the reporting entity’s organizational boundaries. It includes such emissions as derived from burning natural gas onsite, refrigerant leakage, and company owned vehicle emissions.
GHG Protocol: A Corporate Accounting and Reporting Standard: http:// www.ghgprotocol.org/standards/corporate-standard
Scope 2
This refers to the indirect emissions that result from GHG Protocol: A Corporate Accountthe use of grid-supplied electricity. ing and Reporting Standard: http:// www.ghgprotocol.org/standards/corporate-standard
Scope 3
These emissions are the result of activities that happen throughout the value chain, outside an entity’s direct control. Examples include employee commuting, freight, and supplier impacts.
GHG Protocol: A Corporate Accounting and Reporting Standard: http:// www.ghgprotocol.org/standards/corporate-standard
Second Law of Thermodynamics
Also known as entropy, this scientific law states Frank L. Lambert: http://entropysimple. that energy disperses and spreads out if not prevent- oxy.edu/content.htm ed from doing so. As a result anything emitted into the environment will disburse throughout nature. Holacracy: http://www.holacracy.org/ how-it-works/
Self-organization
A principle of most systems is that they have the ability to structure themselves, evolve into new structures, learn, diversify, and become increasingly complex. By loosening control, this phenomenon offers a valuable leverage point for change. Manufacturers use this methodology to improve output quality by defining, measuring, analyzing, improving, and controlling production.
American Society for Quality (ASQ): http://asq.org/learn-about-quality/six-sigma/overview/overview.html
Six Sigma
Smart growth
This term describes a set of strategies designed to US EPA: https://www.epa.gov/smartcreate urban environments that conserve natural growth/about-smart-growth capital, protect human health, and make communities more livable.
Social & Relationship Capital
The International Integrated Reporting Council (IIRC) describes this as “the institutions and relationships established within and between each community, group of stakeholders and other networks…to enhance individual and collective well-being”.
IIRC: http://integratedreporting.org/ wp-content/uploads/2013/03/IR-Background-Paper-Capitals.pdf
Social Accountability 8000 (SA 8000)
Based on the UNDHR, ILO, and international laws, this certification, developed by Social Accountability International (SAI), addresses workplace conditions across the industrial sector. The underlying standard applies a systems approach, setting forth structures and procedures that ensure continuous compliance.
Social Accountability International: http://www.sa-intl.org/index.cfm?fuseaction=Page.ViewPage&PageID=937
Social impact bond (SIB)
Through public-private-philanthropic partnerships, Rockefellerfoundation.org: https://www. this debt instrument is used to finance social prorockefellerfoundation.org/our-work/inigrams. With this development model, government tiatives/social-impact-bonds/ entities initiate the projects, funding is provided by financial institutions in the private-sector, and nonprofits administer the funds.
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Social responsibility
DEFINITION
USEFUL RESOURCES
This refers to fairness and equality among all people Matthew Robinson, “What is Social in society and encompasses issues of human rights Justice?” http://gjs.appstate.edu/socialand the distribution of resources. justice-and-human-rights/what-social-justice This is the practice of incorporating social and en- ISO 26000: https://www.iso.org/obp/ vironmental considerations into the decision-mak- ui/#iso:std:iso:26000:ed-1:v1:en ing process and being accountable for the impact of those decisions. Under ISO 26000 guidance, recognizing the stakeholder interests and incorporating those interests are a key element of its practice. This investment approach considers sustainability criteria when evaluating investment opportunities.
The Forum for Sustainable and Responsible Investment (USSIF): http://www. ussif.org/sribasics
Also known as Solar Engineering, this technology is used to reflect the sun’s energy back into space, thus offsetting temperature increases caused by the greenhouse effect. Technologies under consideration include albedo enhancement, space reflectors, and stratospheric aerosols.
Oxford Geoengineering Programme: http://www.geoengineering.ox.ac.uk/ what-is-geoengineering/what-is-geoengineering/
These system inputs and reservoirs are elements or entities that reside outside a system, but impact or influence it in some way. System inputs may also be reservoirs and vice versa.
American Chemical Society (ACS), “Greenhouse Gas Sources and Sinks: ACS Climate Science Toolkit | Greenhouse Gases”: https://www.acs.org/content/acs/en/climatescience/greenhousegases/sourcesandsinks.html
Any group or individual with an interest in the decisions and activities of an organization. While traditional corporations have narrowly focused on those with a financial interest, considering the interests of this broader constituency is critical to long term success. Broadly speaking these constituents fall into five categories: Investors & Risk Assessors; Consumers & Community; Business Partners & Competitors; Idea Generators & Opinion Leaders; Rule Makers & Watchdogs
American Society for Quality: http://asq. org/learn-about-quality/social-responsibility/stakeholders.html; Daniel C. Esty and Andrew S. Winston, Green to Gold. Yale University Press, 2006.
This term refers to the practice of engaging key stakeholders in dialogue to understand their vital Stakeholder engagement interests—is essential to fostering sustainable business practices.
Business for Social Responsibility (BSR): https://www.bsr.org/reports/BSR_FiveStep_Guide_to_Stakeholder_Engagement.pdf
This non-legally-binding statement of principles emerged from the Rio Earth Summit, calling for a global consensus for action to protect the world's forests from exploitation, fire, acid rain and alternative land use practices. The five program areas include: multiple use of forests and forest lands, promoting afforestation and reforestation, efficient use of forests and their trees, monitoring forest-related activities, and promoting cooperation.
UN: http://publications.gc.ca/Collection-R/LoPBdP/BP/bp317-e.htm#D.%20 Statement%20of%20Land%20Resources:%20Deforestation(txt)
Socially responsible investing (SRI)
Solar Radiation Management (SRM)
Sources and sinks
Stakeholder
Statement of Land Resources: Deforestation
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CORE CONCEPT Stationary combustion
Steady-state economy
DEFINITION Combustion of fuels in equipment such as boilers, furnaces, burners, turbines, heaters, incinerators, engines, flares, etc.
USEFUL RESOURCES GHG Protocol: A Corporate Accounting and Reporting Standard: http:// www.ghgprotocol.org/standards/corporate-standard
An economy where inflows and outflows, though Herman E. Daly: http://www.sd-commisin a constant state of fluctuation, remain in relative sion.org.uk/data/files/publications/Herbalance. Such an economy permits qualitative man_Daly_thinkpiece.pdf development without quantitative growth. Entering into effect in 2004 upon ratification, this is a global treaty to protect human and environmental health from organic pollutants that bioaccumulate with potentially significant impacts. Initially covering 12 organic chemicals, the convention now governs nearly 30 pesticides, industrial chemicals, and unintentionally produced substances.
Stockholm Convention: http://chm. pops.int/TheConvention/Overview/History/Overview/tabid/3549/Default.aspx
These are the elements of a system that you can see, feel, and count.
Systemdynamics.org: http://www.systemdynamics.org/DL-IntroSysDyn/stock.htm
Stranded assets
This term refers to those assets recorded as losses on a company’s balance sheet, because they have become nonperforming ahead of their useful life. Notably, in 2014, ExxonMobil began issuing a “Carbon Asset Risk” assessment that led to recording a portion of their oil reserves in this way.
Joel Makower: https://www.greenbiz.com/ blog/2014/03/24/exxon-stranded-assetsand-new-math
Strengths, weaknesses, opportunities, threats (SWOT)
This analysis involves a process of identifying the strengths, weaknesses, opportunities, threats faced by an organization.
Investopedia: http://www.investopedia. com/terms/s/swot.asp
Strong sustainability
A view of sustainable development that sees nature as having “critical” elements—conceptualized as ecosystem services—that uniquely contribute to human wellbeing. As “critical natural capital,” maintaining nature’s ecological functioning is required if society will continue to provide for the needs of future generations.
Division for Sustainable Development, UN-DESA: https://sustainabledevelopment.un.org/content/ documents/6569122-Pelenc-Weak%20 Sustainability%20versus%20Strong%20 Sustainability.pdf (paste link in browser)
These practices involve the replacement of conventional materials with less impactful alternatives. Along with dematerialization, these approaches provide a key mechanism for driving sustainable development. Harnessing renewable energy in lieu of fossil fuels is an example of this practice.
KH Robert, et. al., “Strategic Sustainable Development — Selection, Design and Synergies of Applied Tools,” Journal of Cleaner Production, 2002: http:// www.foroandinopvc.org.co/documentos/ Strategic%20Sustainable%20Development%20-%20K.H%20Robert%20 et%20al.pdf
This is one of the greenhouse gases that nations are required to track under the Kyoto Protocol. According to the IPCC’s Fifth Assessment Report (AR5) it has a global warming potential of 23,500 over a 100 year time horizon.
“Global Warming Potential Values,” GHG Protocol: http://www.ghgprotocol. org/calculation-tools/all-tools
Stockholm Convention on POPs
Stocks
Substitution
Sulfur Hexafluoride (SF6)
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CORE CONCEPT Supply chain
Sustainability Compass
DEFINITION This refers to three functions occurring in the life cycle of a product: materials supply, manufacture, and distribution through to the final customer.
USEFUL RESOURCES Canadian Supply Chain Sector Council: http://www.supplychaincanada.org/en/ supply-chain
This metaphorical tool helps planners navigate the The AtKisson Group: http://atkisson. journey toward sustainability. Used for indicator com/visis/ development, it offers four broad categories for assessment: N = Nature; E = Economy; S = Society; W = Wellbeing.
Sustainability Management System (SMS)
This systematic approach to sustainability strategy implementation--which often follows the iterative Plan > Do > Check > Act (PDCA) framework--provides for continuous improvement in day-to-day operations.
Robert B. Pojasek, Ph.D., “Planning a Sustainability Management System Program,” 2008: http://isites.harvard.edu/ fs/docs/icb.topic554273.files/Sustainability%20Planning%20Narrative.pdf
Sustainable consumption and production
This term describes the life cycle use of products and services in a way that provides for basic needs, improves quality of life, protects human and environmental health, minimizes the use of natural resources, and avoids waste.
UN Department of Economic and Social Affairs: https://sustainabledevelopment. un.org/topics/sustainableconsumptionandproduction
Sustainable development
The most widely accepted definition of this development approach comes from the 1987 Brundtland Commission report, which describes it as: “development that meets the needs of the present without compromising the ability of future generations to meet their own needs”.
World Commission on Environment and Development ”(WCED), a.k.a. Brundtland Commissions, “Our Common Future, From One Earth to One World,”1987: http://www.un-documents. net/our-common-future.pdf
Sustainable Development Goals (SDG)
These 17 goals, which went into effect in 2016, UN: http://www.un.org/sustainabledevelbuild on the UN’s Millennium Development Goals opment/ (MDGs). They call on all nations to end poverty in all forms by promoting individual wellbeing while protecting the planet. Though not binding in law, countries must devise implementation frameworks and report on progress toward these goals.
Sustainable energy
This describes energy that is available to all people—both today and in the future. Having the capacity to provide this requires a strong infrastructure, deriving fuel from renewable sources, and practicing energy efficiency.
System
UNDP: http://www.undp.org/content/ undp/en/home/ourwork/climate-and-disaster-resilience/sustainable-energy.html
More than the sum of its parts (elements, intercon- Donella Meadows, Thinking in Systems: A nections, and a function or purpose) this structure Primer, Chelsea Green, 2008 has a quality of “wholeness” and active mechanisms to maintain its integrity. While an important function of almost any such structure is self-perpetuation, understanding its behavior reveals a lot about its purpose. Changing any part of the structure changes it as a whole, although the most impactful change results from changing its function.
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DEFINITION
USEFUL RESOURCES
System archetypes
This term refers to the various combinations of reinforcing and balancing feedback loops that commonly occur in systems. They include: Fixes that backfire or fail, Shifting the burden, Limits to growth or success, Tragedy of the commons, Accidental adversaries, Escalation, Drifting or eroding goals, Success to the successful, and Growth and underinvestment.
John D. Sterman, “Sustaining Sustainability: Creating a Systems Science in a Fragmented Academy and Polarized World,” Springer Science, 2012: http:// jsterman.scripts.mit.edu/docs/Sterman%20Sustaining%20Sustainability%206-19.pdf
Systems mapping
This is a visual representation of a system that Joelle Cook, “An Introduction to System provides a way to better understanding how it func- Mapping,” 2015: http://www.fsg.org/blog/ tions in order to affect change. introduction-system-mapping
Systems thinking
Taking a holistic approach to analyzing complexiDaniel Aronson: http://www.thinking. ty. Rather than focusing on the details of isolated net/Systems_Thinking/OverviewSTartiproblems, way of thinking allows us to see the cle.pdf interconnections between constituent parts and the causes and effects of action. University Leaders for a Sustainable Future (ULSF): http://www.ulsf.org/programs_talloires_td.html
Talloires Principles
The Talloires Principles are a set of principles espoused by the presidents, rectors, and vice chancellors of universities from all regions of the world. They provide guidance to institutions of higher learning on building awareness and providing an educational setting that fosters progress toward sustainable development goals.
The commons
Derived from a 19th century word describing land that is shared collectively by the community, this term now refers to any shared and unregulated resource.
Garrett Hardin, “The Tragedy of the Commons,” 1968: http://science.sciencemag.org/content/162/3859/1243.full
This global initiative, that focuses on “making nature’s values visible,” aims to bring ecosystem service and biodiversity issues into mainstream decision-making practices.
The Economics of Ecosystems and Biodiversity (TEEB): http://www.teebweb. org/about/
Developed in the mid-1990s, this framework for planning in complex systems evolved from the research of Dr. Karl-Henrik Robèrt, a former pediatric oncologist in Sweden. Robert’s hierarchical framework for strategic sustainable development (FSSD) consists of five levels: System; Success; Strategy; Action; Tools.
The Natural Step: http://www.thenaturalstep.org/
This refers to the deep ocean currents that are driven by differences in water density, which is controlled by temperature (thermo) and salinity (haline). As glacier ice forms, the salt precipitates out into the surrounding seawater making it saltier and denser, causing it to sink. As this saltier water sinks, the fresh surface water drawn in to replace it also becomes salty—eventually sinking as well. The resulting deep ocean currents circle the globe in a kind of conveyor belt.
National Ocean Service, National Oceanic and Atmospheric Administration (NOAA): http://oceanservice.noaa.gov/ education/tutorial_currents/05conveyor1.html
The Economics of Ecosystems and Biodiversity (TEEB)
The Natural Step (TNS)
Thermohaline circulation
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CORE CONCEPT Traceability
Transmaterialization
DEFINITION This is a supply chain transparency concept that relates particularly to commodities where a buyer is unlikely to know the origins, or social and environmental impacts of the component or ingredient.
USEFUL RESOURCES UNGP, “A Guide to Traceability: A Practical Approach to Advance Sustainability in Global Supply Chains,“: https://www.unglobalcompact.org/library/791
A term related to industrial ecology, this is the Dictionary of Sustainable Management: concept of offering a service that satisfies the needs http://www.sustainabilitydictionary.com/ provided otherwise by a product. Providing services transmaterialization/ instead of products makes it possible to maintain economic growth while reducing resource consumption.
Triple bottom line (TBL)
Coined by John Elkington of SustainAbility, in 1994-5, this term refers to the practice of focusing, and accounting for, sustainability impacts on environment, society and the economy. Sometimes it is described as “economic prosperity, environmental quality, and social equity,” or as “people, planet, profit” (3Ps).
John Elkington, The Triple Bottom Line – Does It All Add Up?, Earthscan, 2004: http://www.johnelkington.com/archive/ TBL-elkington-chapter.pdf
UN Conference on Environment and Development (UNCED)
Also known as the Rio Summit, this 1992 conference laid the foundation for all future efforts by the international community to ensure sustainable development. Rio’s five main outcomes were: the Rio Declaration on Environment and Development, Agenda 21, the Statement of Land Resources and Deforestation, the UN Framework Convention On Climate Change, and the UN Convention on Biological Diversity.
Stephanie Meakin, “The Rio Earth Summit: Summary of the UN Conference on Environment & Development,” 1992: http://publications.gc.ca/Collection-R/ LoPBdP/BP/bp317-e.htm
Convention on Biological Diversity: https://www.cbd.int/intro/default.shtml
UN Convention on Biological Diversity
This convention was an outcome of the 1992 WCED summit in Rio de Janeiro and entered into force in 1993. It has three key objectives--to conserve biological diversity, support the sustainable use of biological diversity’s components, and promote the equitable sharing of benefits that arise from using genetic resources.
UN Framework Convention on Climate Change (UNFCCC)
The parent treaty to the Kyoto Protocol this framework convention was a major outcome of the 1992 Earth Summit in Rio. With near universal membership (197 members) the goal of the convention is “to stabilize greenhouse gas concentrations in the atmosphere at a level that will prevent dangerous human interference with the climate system”.
UNFCCC: https://unfccc.int/files/essential_background/background_publications_htmlpdf/application/pdf/conveng. pdf#page=7
UN Global Compact (UNGC)
Launched in 2000, this initiative helps businesses UNGC: https://www.unglobalcompact. adopt practices and policies that align with its ten org principles on human rights, labor, environment and anti-corruption. This is the largest corporate sustainability initiative in the world; with over 12,000 organizations based in 145 countries are signatories.
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DEFINITION
USEFUL RESOURCES
This Framework provides companies with principles to comprehensively report on human rights issues that align with their responsibility as defined by the UN Guiding Principles on Business and Human Rights.
UN Guiding Principles Reporting Framework: http://www.ungpreporting. org/wp-content/uploads/2015/02/UNGuidingPrinciplesReportingFramework_ withimplementationguidance_Feb2015. pdf
UN Guiding Principles on Business and Human Rights (Ruggie Framework)
Drafted under the direction of Harvard’s John Ruggie, these principles clarified existing human rights standards for transnational corporations and other business enterprises. These principles provide guidance for practicing the three pillars of CSR: Protect, Respect, and Remedy.
Kenan Institute for Ethics at Duke University: https://kenan.ethics.duke.edu/ wp-content/uploads/2012/07/UN-Guiding-Principles-on-Business-and-Human-Rights-Analysis-and-Implementation.pdf
Universal Declaration on Human Rights (UNDHR)
Adopted in the wake of World War II (1948), this declaration, represented the first global expression of the belief that all people have certain inherent and fundamental rights that should be universally protected.
UN: http://www.un.org/en/universal-declaration-human-rights/index.html
UN Guiding Principles Framework (UNGPs)
Upcycle
A term associated with cradle-to-cradle thinking, Dictionary of Sustainable Management: this is the process of converting material into some- http://www.sustainabilitydictionary.com/ thing of similar or greater value, in its second life. upcycle/
Value chain
The various value adding activities of an organizational network—from materials resourcing through waste management.
Dictionary of Sustainable Management: http://www.sustainabilitydictionary.com/ value-chain/
Vampire energy
Also called “phantom energy,” this term refers to the power drawn by AC/DC adapters and electronic devices when operating in standby mode.
Michael Bluejay: http://michaelbluejay. com/electricity/vampire.html
The process of obtaining an independent assessment as to the reliability of a GHG inventory.
GHG Protocol: A Corporate Accounting and Reporting Standard: http:// www.ghgprotocol.org/standards/corporate-standard
Verification
Verified Emissions Reduction (VER)
Vienna Convention for the Protection of the Ozone Layer
VISIS
These are carbon credits available in the voluntary Carbon 350: http://www.carbon350. marketplace. Verifiable through numerous stanco.uk/carbon-assets-and-offsets/vers/ dards these credits are compatible with CDM and JI projects, although small project managers may elect not to register them due to the costs associated with compliance. Ratified in 1988, this framework convention, laid the groundwork for the Montreal Protocol. Its objective was to promote research, facilitate the exchange of information, and adopt measures that would mitigate activities that deplete the ozone layer.
UNEP, Ozone Secretariat: http://ozone. unep.org/en/treaties-and-decisions/vienna-convention-protection-ozone-layer
Developed by Alan AtKisson, this methodology The AtKisson Group: http://atkisson. provides an iterative process of assessment, analycom/visis/ sis, initiative development, and planning toward sustainable development. Planners progress through a series of steps--visioning, indicator development, systems mapping, innovation brainstorming, and strategy development.
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DEFINITION
USEFUL RESOURCES
Volatile Organic Compounds (VOCs)
These chemical compounds are organic substances that evaporate easily, contributing to the formation of ozone and smog. They are linked to respiratory illnesses and memory impairment.
United Nations Economic Commission for Europe (UNECE): http://www.unece. org/env/lrtap/vola_h1.html
This global standard is used to develop credible voluntary carbon unit (VCU) credits.
Voluntary Carbon Standard (VCS): http://www.v-c-s.org/ Scientific American: http://www.scientificamerican.com/article/does-burninggarbage-to-produce-energy-make-sense/
Waste to energy
These landfill management practices involve the process of using discarded materials to generate heat and electricity, rather than allowing it to decay in the landfill. Sometimes referred to as “recovery” the process is sometimes included as the fourth “R” in waste management (reduce-reuse-recycle-recover).
Weak sustainability
A view of sustainable development that assumes natural capital and manufactured capital generate the same level of wellbeing to society. Proponents of this view believe that sustainability can be achieved for future generations by maintaining or increasing the aggregate value of all capital stocks.
Division for Sustainable Development, UN-DESA: https://sustainabledevelopment.un.org/content/ documents/6569122-Pelenc-Weak%20 Sustainability%20versus%20Strong%20 Sustainability.pdf (paste in browser)
Whistleblower
Someone who discloses information believed to be evidence of wrongdoing that threatens “public health and safety, financial integrity, human rights, the environment and the rule of law.” Protections for these people are designed to shield them from retaliation and encourage reporting of misconduct of those in power.
Transparency International: http://www. transparency.org/whatwedo/publication/ international_principles_for_whistleblower_legislation
Voluntary Carbon Standard (VCS)
Wicked problems
Zero waste
These problems are difficult or impossible to solve. Wicked Problems: https://www.wickedIn part, solutions to these challenges elude policy problems.com/1_wicked_problems.php makers and society because of their complexity or the lack of clear and complete information. Solving these social or cultural problems may be costly due to their systematic and the number of stakeholders involved. This approach to materials disposal goes beyond the practice of recycling, taking a whole-system approach to eliminating waste from human society.
www.sustainabilityprofessionals.org
Grassroots Recycling Network: http:// www.grrn.org/page/zero-waste
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ACRONYMS Acronym
Term
3Es
Economy, Environment, Equity or Economy, Ecology, Equity
3Ps
People, Planet, Profit
3Rs
Reduce, Reuse, Recycle
3Ts
Tin, Tungsten, and Tantalum (Conflict Minerals)
AAU
Assigned Amount Unit
ACCU
Australian Carbon Credit Unit
ADA
Americans with Disabilities Act (US)
AGBC
Australian Green Building Council
AR5
IPCC’s Fifth Assessment Report
ARM
Adaptive Resource Management
ASQ
American Society for Quality
BSC
Balanced Scorecard
BSI
Balanced Scorecard Institute
BSR
Business for Social Responsibility
BREXIT
Britain Exit from the EU
C2C
Cradle to Cradle Certified
CAFE
Corporate Average Fuel Economy
CASBEE
Comprehensive Assessment System for Built Environment Efficiency (Japan)
CBDR
Common But Differentiated Responsibilities and Respective Capabilities
CCF
Community Capitals Framework
CCS
Carbon capture and sequestration
CDM
Clean Development Mechanism
CDP
Carbon Disclosure Project
CDR
Carbon Dioxide Removal
CER
Certified Emission Reduction unit
CERCLA
Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (US)
CFC
Chlorofluorocarbon
CH4
Methane
CHC-12
Freon
CHP
Combined Heat and Power
CITES
Convention on International Trade in Endangered Species of Wild Fauna and Flora
CO2
GWP of Carbon Dioxide
CO2e
Carbon Dioxide equivalent
CoP
Communication on Progress
COP
Conference of the Parties
COP21
21st Conference of the Parties to the UNFCCC (Paris Agreement)
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Acronym
Term
CRT
Caux Round Table
CSR
Corporate Social Responsibility
DfE
Design for the Environment
DJSI
Dow Jones Sustainability Index
DLPE
Low-Density Polyethylene
EC
European Commission
EEG
Renewable Energy Act (Germany)
EHS
Environmental Health & Safety
EIRIS
Ethical Investment Research Services
EIS
Environmental Impact Statement
EIT
Economies In Transition (EIT)
EMS
Environmental Management System
ENM
Engineered Nanomaterial
EP
Equator Principles
EPA
Environmental Protection Agency (US)
EPACT 1992
Energy Policy Act of 1992
EPD
Environmental Product Declaration
EPEAT
Electronics Products Environmental Assessment Tool
EPR
Extended Producer Responsibility (EU)
ERU
Emission Reduction Unit
ESA
Endangered Species Act (US)
ESG
Environmental, Social, and Governance
EU
European Union
EuroSOX
EU equivalent of US SOX Act
e-Waste
Electronic Waste
F2B2
Future Fit Business Benchmark
FAO
UN Food and Agriculture Organization
FIT
Feed-in Tariff
FLO
Fairtrade International
FSC
Forest Stewardship Council
FTAA
Free Trade Area of the Americas
GDP
Gross Domestic Product
GEMI
Global Environmental Management Institute
GHG
Greenhouse gas
GISR
Global Initiative for Sustainability Ratings
GMO
Genetically Modified Organism
GNH
Gross National Happiness
GNP
Gross National Product
GPC
GHG Protocol for Cities
GPI
Genuine Progress Indicator
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Acronym
Term
GRI
Global Reporting Initiative
GWP
Global Warming Potential
HCFC
Hydrochlorofluorocarbon
HDPE
High Density Polyethylene
HFC
Hydrofluorocarbon
IAQ
Indoor Air Quality
ICCA
International Council of Chemical Associations
ICLEI
ICLEI - Local Governments for Sustainability
ICJ
International Court of Justice
IDS
Institute of Development Studies (UK)
IEA
International Energy Agency
IFC
International Finance Corporation
IIRC
International Integrated Reporting Council
IISD
International Institute for Sustainable Development
ILO
International Labour Organization
IPAT
Impact = Population x Affluence x Technology
IPBES
Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services
IPCC
Intergovernmental Panel on Climate Change
ISI
Institute for Sustainable Infrastructure
ISO
International Organization for Standards
ISSP
International Society of Sustainability Professionals
ISSP-SA
ISSP Sustainability Associate
ISSP-CSP
ISSP Certified Sustainability Professional
IT
Information Technology
JI
Joint Implementation
IUCN
International Union for Conservation of Nature
IWBI
International Well Building Institute
KEITI
Korean Environmental Industry & Technology Institute
KPI
Key Performance Indicator
KSA
Knowledge, Skill, Attribute
kWh
Kilowatt Hour
LASER
Local Action for Sustainable Economic Renewal
LCA
Life Cycle Assessment
LCC
Life Cycle Costing
LCI
Life Cycle Inventory
LCIA
Life Cycle Impact Assessment
LDC
Less Developed Country
LEED
Leadership in Energy and Environmental Design
LFA
Logframe Approach
LID
Low Impact Development
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Acronym
Term
LOHAS
Lifestyles of Health & Sustainability
LULUCF
Land use, land-use change and forestry
LUMASEC
Land Use Management for Sustainable European Cities
MA
Millennium Ecosystem Assessment
MDG
Millennium Development Goal
MEA
Multilateral Environmental Agreements
MSC
Marine Stewardship Council
MSW
Municipal Solid Waste
mWh
Megawatt Hour
N2O
Nitrogen dioxide
NAFTA
North American Free Trade Agreement
NASA
National Aeronautics and Space Administration (US)
NF3
Nitrogen Trifluoride
NGAC
New South Wales Greenhouse Gas Abatement Certificate (Australia)
NGO
Nongovernmental Organization
NIEHS
National Institute of Environmental Health Sciences (US)
NIMBY
Not In My Backyard
NOAA
National Ocean Service, National Oceanic and Atmospheric Administration (US)
O3
Ozone
OA
Ocean Acidification
ODC
Ozone Depleting Chemical
ODP
Ozone Depleting Potential
ODS
Ozone Depleting Substance
OECD
Organisation for Economic Co-operation and Development
P2
Pollution Prevention
PCB
Polychlorinated Biphenyl
PCR
Product Category Rules
PDCA
Plan, Do, Check, Act
PEF
Product environmental footprint (EU)
PET / PETE
Polyethylene Terephthalate
PFC
Perfluorocarbon
PM
Particulate Matter
POP
Persistent Organic Pollutant
PP
Polypropylene
PRI
Principles for Responsible Investment Initiative
PS
Polystyrene
PSS
Product Service System
PVC
Polyvinyl Chloride
REACH
Regulation on Registration, Evaluation, Authorization & Restriction of Chemicals (EU)
REC
Renewable Energy Certificate
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Acronym
Term
RMU
Removal Unit
RoHS
Restriction of Hazardous Substances Directive (EU)
ROI
Return on Investment
Ruggie
UN Guiding Principles on Business and Human Rights
SA 8000
Social Accountability 8000 Standard
SAI
Social Accountability International
SASB
Sustainability Accounting Standards Board
SDG
Sustainable Development Goal
SF6
Sulfur Hexafluoride
SIB
Social Impact Bond
SMS
Sustainability Management System
SOX Act
Sarbanes-Oxley Act
SP
Sustainability Principle
SPI
Society of the Plastics Industry
SRI
Socially Responsible Investing
SRM
Solar Radiation Management
SROI
Sustainable Return On Investment
SWOT
Strengths, Weaknesses, Opportunities, Threats
TBL
Triple Bottom Line
TEEB
The Economics of Ecosystems and Biodiversity
TNS
The Natural Step
TSCA
Toxic Substances Control Act (US)
UDHR
Universal Declaration on Human Rights
UN
United Nations
UNCBD
UN Convention on Biological Diversity
UNCCD
UN Convention to Combat Desertification
UNCSD
UN Commission on Sustainable Development
UNCED
UN Conference on Environment and Development
UN-DESA
UN Department of Economic and Social Affairs
UNDP
UN Development Programme
UNDRIP
UN Declaration on the Rights of Indigenous Peoples
UNECE
UN Economic Commission for Europe
UNEP
UN Environment Programme
UNFCCC
UN Framework Convention on Climate Change
UNGC
UN Global Compact
UNGP
UN Guiding Principles Framework
USGBC
US Green Building Council
VCS
Voluntary Carbon Standard
VCU
Voluntary Carbon Unit
VER
Verified Emissions Reduction
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Acronym
Term
VISIS
Vision>Indicators>Systems>Innovations>Strategy
VOC
Volatile Organic Compound
WBCSD
World Business Council for Sustainable Development
WCED
World Commission on Environmental Development
WEEE
Waste from Electrical & Electronic Equipment Directive (EU)
WHO
World Health Organization
WMO
World Meteorological Organization
WRC
Water Reduction Credit
WTO
World Trade Organization
ZWIA
Zero Waste International Alliance
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ISSP–SA STUDY GUIDE
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