A selection of sustainability frameworks that enable value creation - economic, social and environmental.

1. Sustainability Frameworks
Bruce Starcher
2011

2. Sustainability Value Creation
Commerce Justice
Economic Environmental Social
Market Cap = Eliminate Toxins Basic Needs Food
+ Revenue Neutralize Carbon Shelter
- Cost Sustainable Lifestyle Sustainable Living Health
+ Brand Positive Change Wellness
+ Employees Education
- Financing Financial Security
- Risk Community Workplace
Social
Political

3. Value Creation
Shared Value
World
Environmental, Social value
Ecosystem
Activism
Industry
Open
Collaboration
Platforms
Suppliers
Assessments
X-Sector
Beyond
Groups
Company Industry
Engagement
Association
Code of
Person Conduct
Total Rewards
Economic Value

4. Linear to Closed Loop Systems
• Systems diagram here …

5. CSR Maturity
Defensive Compliance Managerial Strategic Cooperative
Pre-2006 2006 - 2010 2011 - 2015 2015 - 2018 2018+
Employee Engagement None I’m aware of the message I understand the message I believe I am committed to act
Adopt a policy-based Embed the societal issue Connecting externally with
Deny practices, outcomes or Integrate the societal issue
Focus compliance approach as into core management organizations to drive
responsibilities into core business processes
a cost of doing business processes broader change
One or two projects
Activities No Action Green-wash Bundle of Projects Management System Full Integration
No strategy
Leadership and
Management Processes, Strategy, Financing,
Embedded No No Business Processes
Strategy, Employee Reputation, Brand
Engagement
To mitigate the erosion of
economic value in the To enhance economic value To enhance long term
To defend against attacks to To mitigate the erosion
medium term and to in the long term and to gain economic value by
their reputation that in the short of economic value in the
achieve longer-term gains first mover advantage by overcoming any first mover
The “why” term could affect sales, medium term because of
buy integrating aligning strategy and process disadvantages and to realize
recruitment, productivity, and ongoing reputation and
responsible business innovations with the societal gains through collective
the brand. litigation risks
practices into their daily issue action.
operations.
Source: Simon Zadek, “The Path to Corporate Responsibility”

6. CSR Landscape
Economic Environmental Social Governance
Financial Performance Supply Chain Responsibility Employees Metrics and Measurement
Economic Benefit Manufacturing Agreements, Diversity and Inclusion, Balancing Change Management
Supplier Code of Conduct, Supplier work-Life, People Development and CSR Assessments
Audits, Supplier SRE Training, Advancement, Employee and Global CSR Program Management
Transparency, NGO Collaboration, Citizenship, Employee Engagement,
Verification and Assurance Compensation and Benefits,
Minimal Waste Promoting Wellness, Health and
Reuse, Recycle, Repair, Rethink, Safety.
Recover, Compost, Producer Human Rights
Responsibility Open door policies, Diversity
Environmental Sustainability Policies, Human Rights and Labor
Marketing Communications, Policies, Standards of Business
Operations, Manufacturing, Conduct.
Logistics, Product Use, EH&S, Supply Chain Responsibility
Resource Efficiency Sustainable Sourcing, Supplier Social
Climate and Energy Responsibility, NGO Collaboration,
Scope 1, Scope 2, Scope 3 Transparency, Supplier Diversity
Sustainable Design Community
Compliance, Design for the Employee Volunteerism, Corporate
Environment, Lifecycle Analysis Philanthropy, Community
(LCA), Accessibility, Zero Waste Engagement, Economic Impact
System Privacy

7. How to look at CSR
Responsible
People Climate & Energy Minimal Waste Purpose Governance
Product
Communities Product Carbon Management Waste to Landfill Ethics Metrics & Measurement
• Employee Volunteering • Legal • Scope 1 • CSR Metrics
• Community • Safe • Scope 2 • CSR Measurement
Engagement • Environmental • Scope 3
• Corporate Philanthropy • Sustainable
• Economic Impact • Ethical
Employees Process Waste to Water Values driven leadership CSR Assessments
• Diversity & Inclusion • Environmental • CSR Self-Audit
• Employee Engagement Marketing Strategy • SCORE assessment
• Health Safety & • Product Material Audit
Wellness • Supplier Management
• Human Rights • Design for Environment
• Total Rewards • Lifecycle Analysis
• People Development
• Work Life Programs
Supply Chain Waste to Air Change Management
• Integrate CSR in • Communications
Sourcing • Training
• Supplier Social and
Environmental
Responsibility
• Transparency
• Supplier Diversity
CSR Program
Management

8. Responsible Product
The first platform speaks to
the core of our business –
our products.
We want to evolve from
simply meeting our LEGAL SAFE ENVIRONMENTAL SUSTAINABLE ETHICAL
externally mandated /
legal and safety
requirements and move
towards providing ethical
products – products that do
the right thing for our
stakeholders. I am following I will not harm the I will do the right
the law environment thing for our
stakeholders
I will not harm our I will meet this generation’s
consumers needs but not at the expense
of tomorrow’s generation

9. Minimal Waste
Zero Waste is an inspiring
and achievable long term
vision and closely resembles
the TQM mantra of zero
defects. It focuses on DEVASTATE INCINERATE GENERATE RECYCLE REUSE REDUCE RETHINK
redesigning systems and
process for a total product
lifecycle.
Waste represents costs, both Discard into Capture useful Previously Waste as a
to our shareholders and to
our environment. the natural material for discarded resource
environment. waste to energy items have
The approach is an iterative Litter, program; saves value in
one based on setting a set of
goals and then educating, dumping, energy and another
assessing, prioritizing, burn barrels CO2 in the long process or
auditing, identifying term. company
potential actions,
implementing, reporting
and then repeating the
process until the goal is
High temperature Discarded items Buy less and
achieved.
destruction of are separated use less
material into materials
that can be used
again

10. Climate & Energy
Carbon is the common
denominator for all energy
sources. Whether you
believe that carbon is a
contributor to global
warming or not, we do
know that the byproduct of
carbon based processes are
pollution and growing
costs.
As we understand and
track our carbon footprint
over time, we will be able
to set aggressive goals to
pursue with both
environmental and
economic benefits.

11. People
COMMUNITY
Brands exists because of
people - our employees, our
partners’ employees and Employee Volunteerism
the communities in which Community Engagement
we operate.
Corporate Philanthropy
Economic Impact
EMPLOYEES
Purpose
Employee Engagement
Diversity
Human Rights
Total Rewards
People development
Work-Life programs
Health, safety and
wellness
SUPPLY CHAIN RESPONSIBILITY
Integrate CSR in sourcing operations
Supplier social and environmental
responsibility
NGO Collaboration
Transparency
Supplier Diversity

12. Governance
Governance focuses on
“how” we lead
Sustainability across the
organization and beyond.
These are topics that
require leadership and
change management to
affect how conducts
business.
GOVERNANCE
Metrics and Measurement
Change Management
Sustainability Assessments
Sustainability Program Management

13. The Business of Sustainability
Customer Consumer
How do all these pieces fit
together – from
Sustainability Objectives to Objective To be among the industry leaders in Corporate Social Responsibility
Functional strategies?
Over time, we will be Strategy Cost and environmental impact reductions across products and processes
moving from a project
driven structure to a
structure where
Sustainability is integrated
into each function and Product
business.
Charac-
Offering Packaging Category Specific Attributes
teristics
Post Sales
Minimal Waste Minimal Material Waste
Minimal Process Waste
Reduce, Reuse, Rethink,…
Climate and Energy Carbon Management
People Responsible Supply Chain
Operations Brand Vision Brand
Community
Employees
Governance Metrics and Measurement
Change Management
Sustainability Program Management
Supply Communi- Investor Sustainability
Functional
Marketing Sales R&D Compliance Finance HR
Strategies Chain cations Relations
Governance

14. Functional Platform Ownership
Product Supply Sustainabilit
Marketing Compliance HR
Development Chain y
Responsible
Product
    ◦ 
Minimal
Waste
   ◦ ◦ 
Climate &
Energy
◦   ◦ ◦ 
People
     
Governance
     
 Leadership  Integral ◦ Peripheral

15. From planning to execution
Vision Identification Sponsorship Project Embedded Monitor
Function
Ownership Sustainability Sustainability Sustainability Function Function
/Sustainability
Function and
Function leads Function owns Sustainability
Identify projects
Develop long Sponsor projects projects and process and monitor the
that deliver on
Action term vision and across the creates the deliverables process to ensure
the long term
roadmap organization capability across across the implementation
vision
the organization organization and ongoing
performance

16. Sustainability Evolution
Defensive Compliance Managerial Strategic Cooperative
Responsible Product
- Packaging - Green Product Portfolio - Full understanding of all - Continuation and extension of
- Non compliant - Sustainable Packaging product inputs, components, strategic work. Industry leadership in
chemicals - Responsible Supply Chain processes and their impacts. all product categories re: methods,
- Supplier - Lifecycle Analysis - Detailed plan(s) in place to R&D, manufacturing, sourcing.
Sustainability - PVC substitution reduce or eliminate impacts, to - Mentorship and strategic alliances
Compliance - Ongoing Product Material Compliance become resource "neutral" via outside of industry to spread
- Green Products upcycling, alliances to create knowledge.
industrial nutrients (i.e. waste=
food). Minimizing transport;
packaging, etc.
Climate and Energy
- Carbon Management - Carbon Management - Deep understanding of the
• Scope1 • Scope1 environmental impacts of ALL
• Scope 2 • Scope 2 aspects of the enterprise by all
• Scope 3 • Scope 3 employees AND all company
activities analyzed and guided by this
understanding.
- Sharing of knowledge and active
support of science and research
institutions working in these areas.

17. Sustainability Evolution
Defensive Compliance Managerial Strategic Cooperative
Minimal Waste
- General Office - Site Recycling - Process Redesign - Approaching or achieved “Minimal
Printing - General Office Printing - 100% take back packaging guaranty, including waste" goal...and continuing to make
- Solid Waste Reduction agreements with suppliers re: packaging types, adjustments to perpetuate it.
materials and transport strategy. - Active participation in multi-
Incentive plan(s) to actively engage customers in industry coalitions re: zero waste
's zero waste initiative. strategies around the world.
People
- Purpose - Employee Engagement - Continuation and expansion of
- Employee Engagement - Community Engagement strategic era plans. Employee
- Diversity - Integrate Sustainability metrics in MIP and MBO generated ideas have resulted in
- Compensation and benefits objectives spin-off businesses or organizations
- People development - Introduction of cash and non-cash (e.g. that work with .
- Work-Life programs awards/recognition, time off, etc.) incentives for
- Health, safety and wellness employee ideas or projects.
- Partnering with schools (elementary through
university) to develop brand awareness AND
environmental/social goals.
- Partnering with non-profits and community
based NGOs to provide products and raise
awareness of company mission & goals.

18. Sustainability Evolution
Defensive Compliance Managerial Strategic Cooperative
Governance
- Environmental - Align around a long term Sustainability - Develop Company level - Corporate Governance
Business Case roadmap Sustainability strategy and integrate - Access to SRI funding
- Customer - Sustainability External Reporting into corporate strategy - Management compensation includes
Sustainability risk - Sustainability Communications - Integrate Sustainability in ’s Sustainability component.
profile and - Sustainability Training Culture. -External Networks, Working Groups,
requirement - Establish Sustainability metrics, - Increased investment by SRI and External Collaboration
- Sustainability measurement and reporting infrastructure institutional investors as a result of - All Board members have familiarity and
Baseline audit - Public goals Sustainability accomplishments and /or expertise with Sustainability goals and
- Embed - Link values to behaviors and performance goals. issues.
Sustainability in key appraisals - Well established e-learning - Company and shareholders are
processes - Develop Company level Sustainability systems and other internal/cultural completely and actively aligned with
- Customer Request strategy and integrate into corporate mechanisms allow budget resources regard to 's Sustainability agenda and
process and structure strategy to be freed up for other uses. goals.
- Build external network among NGOs, - Company is leading by example and
leading Sustainability companies and other supporting political and social policies that
key sustainability players further environmental and social practices
and initiatives.
- Compensation of all employees AND
selection of all suppliers, contractors and
vendors have mandatory Sustainability
goal requirements.