How can you create a rigorous sustainability change monitoring and evaluation system?

First step is to define the metrics that you want to monitor for change within Sustainability - Under Environment some might be GHG emissions, waste, water, air-quality, under Social - you want to track working conditions, impact on community, relationship with stakeholders, procurement practices, diversity among others, and under governance - you would want to track - board representation etc. GRI or BRSR guidelines are good starting points to align on the metrics. You then set goals / targets on each of these and setup the tools / mechanism to capture data and track progress on theses systematically (good to find a technology solution to help)

Define Your Change Goals: First, clearly outline your desired sustainability outcomes. What environmental or social aspects are you aiming to improve? Be specific and translate these goals into SMART objectives (Specific, Measurable, Achievable, Relevant, and Time-bound). Plan Your Data Collection and Analysis: Identify the data needed to measure progress towards your objectives. This will involve a mix of quantitative (numbers) and qualitative (descriptive) data collection methods.

Saber onde se quer chegar é muito importante para que possamos calcular qual rota seguir, quais métricas avaliar, conhecer nossos stakeholders, qual o impacto ambiental minha empresa causa e que pode sofrer com as mudan?as climáticas. Fazer o mapeamento com análise SWOT tbm é muito interessante porque abrange os impactos que a companhia causa e os que ela pode ser atingida.

First and foremost, when setting targets, the contribution to the company's short, medium and long term goals should be taken into account and should always be in line with the demands that regulatory developments in the field may bring. For this reason, the team setting the targets should always be able to provide up-to-date information.

What gets measured gets managed. Every organization is suffering with huge numbers of data points of different frameworks. Identify key material topics & relevant data points will be first and most important task. #Set specific objectives: What do you want to measure? What changes are you monitoring? # Involve relevant stakeholders and understand their needs, expectations, and priorities. # Collect data systematically and consistently. Use various methods: surveys, interviews, observations, sensor data, etc. A robust monitoring and evaluation system goes beyond mere numbers; it involves comprehending shifts, acquiring knowledge, and making well-informed choices.

Establish the baseline and start collecting sustainability data across all material topics. In second step ensure the quality and transparent of data sets. To ensure effective monitoring introduce effective tools of data collection preferably digital tools. Get support from independent sustainability rating evaluators and implement change management effectively across all dimensions of the Organization.

It's important to ensure that the time / money / effort it takes to do data collection is worth the value delivered. In the early stages of testing a theory of change, it can be more helpful to have quick and easy indicators than more robust metrics that take a long time to attain. Early indicators can give you a sense of whether your theory of change holds up in the real world - or whether you need to revise the theory as your assumptions weren't correct. Once you have more confidence in your theory of change it can make sense to invest in more robust measurement systems.

In current era of technology always use technological means of collecting and evaluating the data sets. It is best to use a baseline sustainability software tool to collect, analyze, and evaluate data sets. Transparent and quality evaluation of data keeps on giving top improvement areas within the reporting dimensions.

Transparency is essential in communicating your findings. Make sure to share your sustainability reports openly and consistently with stakeholders, including employees, investors, customers, and the wider community. Engaging stakeholders throughout the reporting process is also critical. Solicit feedback and integrate their perspectives to enhance transparency and accountability is valuable. Leverage technology and data visualization tools to enhance the clarity and accessibility of your reports will help stakeholders better understand the information presented and encourage meaningful engagement with the data.

One of the ways companies can apprise stakeholders of the progress or lack thereof (while explaining reasons) is through voluntary reporting aligned with reputable global reporting frameworks. This will allow companies to inform stakeholders of important aspect like material topics, strategy and goals and also the progress and gaps. Other avenues is through their traditional media and social media channels, analyst briefings, newsletters etc. This will help companies remain consistent, committed and also bring transparency into reporting which will help build trust

This is an area where it's easy to create a cottage industry! Understand what is needed and useful for making decisions. Keep asking yourself what is good enough. As it's often better for your team to be spending time on making impact than many hours producing beautiful charts. This may change as the idea becomes more established and the impact can be scaled by sharing learnings and creating ripples of change.

Conduct rigorous evaluations to assess the impact of sustainability initiatives on environmental, social, and economic outcomes. Use appropriate evaluation methodologies, such as cost-benefit analysis, life cycle assessment, social return on investment (SROI), and multi-criteria decision analysis, to measure outcomes and assess effectiveness.

Normally companies compile an yearly report and upload on their website with Targets and Achievement’s to date as per plan. This helps all international and local stakeholders!

Acknowledging that the first version of your company's sustainability change monitoring and evaluation system might not be perfect is crucial, to gradually develop your system further. Challenge whether the chosen metrics are the right ones to let you track progress across the different areas. Moreover, existing whitespots (e.g. data points that have not been provided by certain business units, departments, countries, etc.) should be identified and action plans subsequently implemented to close the gaps.

In my opinion, it's important to foster a culture of continuous learning and improvement within your organization. Encourage open communication, feedback, and accountability at all levels. Celebrate successes, but also learn from failures and setbacks. Regularly review and refine your monitoring and evaluation processes to ensure they remain relevant and effective. Consider involving stakeholders and beneficiaries in the design and implementation of your sustainability initiatives. Their insights and perspectives can greatly enhance the relevance and impact of your programs. Finally, stay up-to-date with industry best practices, emerging technologies, and innovative approaches that could strengthen your monitoring and evaluation efforts.

Apart from the steps mentioned, following aspects can also be incorporated for rigorous M&E. 1)First define the performance metrics which needs to monitored and analysed. 2)M&E should provide cause and effect relationship between all the three pillars of environment and socio-economic outcomes. 3)Sustainability needs to be embedded in all the project life cycle. 4)A robust governance framework for sustainability monitoring and evaluation.

Consider developing a proprietary scoring system for evaluating questions directed to your suppliers. This approach facilitates continuous monitoring and enhancement of supplier performance. Organize a workshop involving key stakeholders to gather input on the scoring criteria pertinent to their areas. This initiative not only aids in benchmarking and comparing your suppliers KPIs and metrics (as well as yours) across the board but also establishes a foundation for setting goals aimed at improving your overarching sustainability targets and impact.

In terms of reporting, one can have 3rd party validations (audits, assurance etc). This can enable companies to learn about their performance measured against specific requirements and also develop greater credibility.

Promoting transparency by sharing progress, challenges, and successes with the stakeholders. Communicating about sustainability efforts can garner support from the stakeholders.

True, to create a rigorous sustainability change monitoring and evaluation system, establish clear sustainability metrics, implement regular assessments, utilize key performance indicators (KPIs), and integrate stakeholder feedback for ongoing improvement.