A Corporate Sustainability Framework

Corporate sustainability frameworks towards a (A) Program Goal/Vision are developed with a consolidation of (B) traditional approaches available as covered in section 1, realization of (C) challenges faced & (D) advantages that entities possess. The right task break down structure for the achievement of milestones and vision, like the one given in section 2 of the article below, allows relevant teams to develop adaptable and resilient frameworks. The human experience, competence and qualification factors necessary for successful design of strategies are mapped in section 3.

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Section 1: Strategy design considerations

To design a successful and progressive strategy or framework, the team needs to start with determining the resources, skill sets and knowledge base at its disposal. Following are some considerations while designing a sustainability strategy:

(A) Program Goal / Vision

Clarity on the long term vision is the foundation block for the development of a framework. The custodians of the program and stewards should align the vision with the expectations and feedback of customers and other stakeholders.

In a sustainability context the vision of the program can vary from the development of comprehensive programs such as a Circular Economy Program, an Energy Conservation Program, Net Zero Carbon Emissions Program, etc. to specific objectives such as Sustainability reporting framework at group or subsidiary level, Non-Renewable to Renewable sources of Energy, Target ESG Valuation, DEI, etc.

(B) Traditional Approaches

The classical approach of strategy development focusing solely on profit maximization is outdated and not applicable to investment strategies, let alone for sustainability frameworks. Although the appropriate approach may vary as per the nature of entity such as private, public, commercial, non-profit, etc. the need of the hour is a systemic approach towards sustainability frameworks, i.e. within the local rules and cultural context.

Systemic approach ensures that the programs designed have least possible implementation barriers, realistic targets and optimum use of available resources. For developing entities these systemic frameworks will require an overlap with a processual approach, i.e. an unpredictable business environment. While for developed or established entities this overlap would be with an evolutionary focus on frameworks, i.e. an adaptable framework in line with the every changing economic or socio-political environment.

For Example, a sustainability framework with a vision zero plastic waste in developing nations such as Pakistan, India, Bangladesh, etc. can have overlapping pillars with frameworks of developed countries; however they will have to account for risks and uncertainties associated with the unregulated operations of a well structured informal sector.

While on the other hand, a sustainability framework developed by an Oil & Gas company in developed parts of the world such as middle east, will have to develop evolving KPIs so that commitments towards reduced utilization of non-renewable resource is tangibly attained.

(C) Challenges

Challenges in developing sustainability frameworks are unique due to the infant period of focus on these aspects as opposed to the substantial experience of and effort put in for frameworks related to financial management, marketing management, CSR management, etc.

There are no benchmark sustainability frameworks available for any industry or category of entities. Sustainability frameworks are a result of prioritization exercises or perception of entities and their leaders, hence the frameworks with similar vision of similar entities can be entirely different.

For Example, two similar manufacturing entities of same finished good, with a sustainability vision of reduced carbon footprint might have entirely different frameworks with one focused on KPIs and initiatives to reduce carbon footprint through supply chain interventions while the other can be focused on KPIs and initiatives towards consumption of non-renewable energy sources.

(D) Advantages

Sustainability strategies do not necessarily require intensive brainstorming session, research methodologies or experimental models. As opposed to a new financial strategy, product launch strategy, project feasibility, etc. sustainability framework requires the directional development and utilization of experiences and knowledge that entities already possess.

For example, a systemic sustainability strategy focusing on improving shareholder value on ESG Factors will have to develop on (1) past governance activities such as Internal Audit compliances, Company Law compliance, performance against smart KPIs, etc. (2) Social policies such as HSE, working hours, labor law compliance, etc. and (3) Environmental initiatives such as Gap analysis with environmental law of the land, Emissions monitoring, waste water treatment, etc.

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Section 2: Implementation considerations

Each framework will have its unique implementation considerations. For the purpose of this article we have listed some exemplary implementation considerations for developing a sustainability reporting framework for a developed organization with established training and development SOPs of teams:

(A)??????Alignment with global practices & approaches

a.??????Obtain organizational membership or GRI & SASB at the least to have recognized and verified reporting (financial & sustainability)

b.??????Conduct minimum baseline training of Senior Executives – At least classroom sessions on ISSP guidelines so that all executives and their objectives are in-line with global accepted practices & approaches

c.??????Our Long-term strategic goal may be to Strive to be part of the B Corps globally, i.e. Not the Best organizations in the world, best organizations for the world

(B)??????Strategic Alignment of initiatives

a.??????On Urgent footing obtain SBTi acknowledgement of our on-going initiatives of forestation, net zero carbon supply chain, circular economy initiatives, etc. by WRI – Mandatory for global authentication

b.??????Have organizational strategies evaluated against Circulytics by EMF OR Utilize CTI (Circular Transition Indicators) by WBCSD

c.??????Improve our CAPEX evaluations in line with CFO Leadership Network guides to incorporate sustainability benefits & opportunities

d.??????Be prepared for upcoming Circular Economy ISO standard, i.e., ISO 59004. ISO for sustainable procurement ISO20400

e.??????Review of CAFé requirements for corporate fleet management

(C)??????Capacity Building of Operational Teams

a.??????Awareness sessions across the group

b.??????Initiate mandatory trainings of relevant personnel in all subsidiaries for:

?????i.?????SASB FSA (Fundamentals of Sustainability Accounting) part 1 & 2

????ii.?????AEE CSDP (Certified sustainability development professional)

?????iii.?????AEE CEM (Certified Energy Manager)

?????iv.?????ACCCO CCP (Climate Change Professional by Association of Climate Change)

?????v.?????CTI Academy capacity building training

c.??????Formation of Green Teams

(D)?????Revisiting isolated initiatives

a.??????Focus on SDGs as per principal prioritization, as opposed to address easy to do SDG targets – current initiative may have a risk of easily being pointed out as SDG washing

b.??????A consolidated, visible focused and dedicated sustainability team of personnel in all subsidiaries with the highest ownership, authority and accountability.

(5) Employee Engagement activities

a.??????Every employee to measure their Living planet index

b.??????Every individual to measure the carbon footprint of their diet

c.??????Individual rankings on lifestyles of Health & Sustainability (LOHAS) index

d. Incentivized gamification exercises.?

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Section 3: Task Force Considerations

The task force for the development or implementation of sustainability frameworks can be developed from the existing pool of professionals given certain qualities are ensured collectively or individually:

1. Human Experience

a.??????Past familiarity with some of the ESG Factors such as HSE Policies, HR Policies, Compliance policies, Law of the land on Labor, environment, etc.

b. Successful functioning & performance as part of a team either leadership or follower roles

c. Demonstration of inclination purposeful job roles

2. Competencies

a. Adaptability & Resilience to changing environment and work scopes

b. Ability to understand, emotional intelligence, empathy

c. Creative Initiatives towards existing work scopes

d. Ability to create collaborations & influence stakeholders

e. Data driven approach, analytical abilities and reasoning

3. Qualifications

a. Baseline education with at least a bachelor's degree in a discipline of specific trade such as engineering, MBBS, geologist, etc. or diploma holders with at least 02 years of relevant experience

b. Relevant formal education in business management or similar general fields should be preferred

c. At least 01 formal certification with continuous education units requirements on topics related to sustainability or ESG within the entity's context

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The above summarizes a personal approach and opinion of the Author towards creating a successful sustainability framework, with no direct or indirect relation to the official positions currently held or at the time of writing the above article.