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Concepts                                                           Fishbeck, Thompson, Carr & Huber, Inc.




                                                                                                                                      January 2013




Sustainability Reporting: What is Just Right for your Organization?
As the need to demonstrate sustainability        allows them to demonstrate their interest in             with respect to economic and social
continues to become more important for           both the internal and external community;                considerations.
municipalities, companies, and institutions,     it builds trust and promotes transparency;
voices demanding transparency and                and solicits feedback on performance from a         Determining the best sustainability reporting
accountability are growing louder.               diverse set of stakeholders.                        framework to adopt is dependent on your
                                                                                                     organization’s structure and objectives
Disclosing sustainability planning efforts and   As a practical matter, there is no need to          for reporting. Common frameworks like
results helps satisfy stakeholder demands        tackle every sustainability-related issue on        the Global Reporting Initiative (GRI) are
for transparency. These efforts require a good   the horizon. An organization should focus on        well-suited for a multinational corporation
deal of vision and strategy. Revealing too       its core value issues, or core performance          but may be too lengthy and complex for
much or too little each has its own risks.       indicators, that are relevant to its operations     organizations like municipalities or small
                                                 and activities. Determining the “materiality”       businesses. ICLEI – Local Governments for
What do you do?                                  of each focus area                                                         Sustainability offers a
What protocols do you follow?                    allows an organization to
                                                                              an organization should develop a              tool-kit and guidance to
How do you spend your time and resources?        use its limited resources relevant framework based on suitable its municipal members.
Aggressive sustainability reporting protocols    to analyze the issues        protocols that is challenging and             There are also sector-
                                                 that will resonate with
are being used by a variety of organizations
                                                 its stakeholders. For        helps it to identify, deliver, and track based frameworks that
                                                                                                                            may be explored for
and becoming commonplace to frame
communication with stakeholders. These           instance:                    sustainable outcomes.                         universities, hospitals,
standards focus on a customized mix of           •	 A manufacturer could focus on improving                                 and non-manufacturing
social, economic, and environmental metrics            the recycled content of its product           companies. Protocols should be looked
or indicators (triple bottom line). The                instead of investing in selected high-cost,   upon as reference tools, not requirements.
selected metrics or indicators are intended            low-return alternative energy technology      Because there are no mandatory or market-
to increase transparency so stakeholders               that does not support its core values.        preferred protocols,
have a better view of the organization’s true                                                        an organization should develop a relevant
                                                 •	 A city could evaluate and report on              framework based on suitable protocols that
performance and ability to stay healthy in
                                                       its “walkability,” which measures how         is challenging and helps it to identify, deliver,
the long term. These stakeholders include: a
                                                       friendly an area is to walking, and           and track sustainable outcomes.
municipality’s residents and business owners;
                                                       includes a variety of indicators such as
a company’s customers and shareholders; or
                                                       safety, access to businesses or schools,      The major focus areas for measuring
an institution’s patients, students, alumni,
                                                       and connectivity to public green spaces.      sustainability success include environmental,
and faculty.
                                                                                                     economic, and social.
                                                 •	 An institution might focus on the
The benefits to an organization that tackles
                                                       efficiency of how it delivers core services
quality sustainability reporting are clear: it
Pro                 Sustainability Planning in Practice
    le                                 fit           FTC&H is helping a diverse set of clients define sustainability plans and connect programs to
                                                     their overall strategy. Our team of engineers and scientists are helping guide a collaborative
  op
                                                     sustainability planning process of selected counties and cities in Michigan. These projects
Pe

                                                     help define and catalog the best planning practices and ultimately draw them together into
                                                     a tool-kit for use by other communities. One of FTC&H’s large industrial clients needed help
                                                     developing greenhouse gas inventories for its global manufacturing operations. This simple
                                                     project demonstrated how interconnected the energy consumption and environmental issues

                          Planet                     were. Management realized the need for more comprehensive sustainability planning, and
                                                     they looked to FTC&H to provide support. Our integrated multidisciplinary teams developed
                                                     programs to help the client satisfy its triple bottom line.



TABLE
      1  .                                                                                 Examples of Key Indicators
    Organization
       Type                 Desired Outcome                          Environmental                       Economic                             Social

                     ty
              ipali                                                Water consumption               Cost of water supplied               Number of annual
          nic                Reliable water services
      u                                                                per capita                        per capita                      boil water alerts
     M


                 i al        Reduced energy in                  Greenhouse gas emissions,                                           Greenhouse gas emissions
          u  str                                                                                       Energy costs
                                                                                                                                
      Ind                  manufacturing operations               indexed to production                                              avoided, in metric tons


               o     n
           ati                                               Stormwater managed onsite,                                             Research dollars connected
         uc                   Green infrastructure                                                 Building energy index
      Ed                                                          gallons per year                                                    to green infrastructure

               h
           alt              Improved medical waste                                              Cost of waste management,
         He are                  management
                                                            Waste generation, per patient
                                                                                                        per patient
                                                                                                                                    Community sharps program
           C


            all s                                                 Life cycle assessment
         Sm ines               Business longevity                                                 Customer base diversity           Management transition
             s                                                   of products or services
          Bu

                           Many indicators fit into all               present long case studies on programs           provided. The results of the external
                           categories depending on how they           developed specifically to improve the           verification can help an organization
                           are defined by the organization            organization’s sustainability.                  reevaluate and strengthen its framework
                           and the metrics selected to define                                                         for future improvements.
                           the baseline conditions and                                        Organizations
                           target outcomes. Examples of       major focus area s for          that develop            Conclusion
                           key metrics or indicators are in measuring sustainability and report on
                                                                                              sustainability          Careful sustainability planning and
                           table 1.
                                                              success include                 measures must           reporting can enhance an organization’s
                           It is most beneficial to include   environmental, economic, be mindful it                  longevity and reputation. The key
                           narrative and metrics for all                                      is not a one-           is to stay focused on sustainability
                           three focus areas­ social,
                                             —
                                                              and social.                     time effort.            practices and indicators related to core
                           economic, and environmental. How           It takes consistent evaluation and              values. Start small. Establish goals that
                           much emphasis is placed on each            attention. As an organization moves             challenge the organization. Define and
                           of the three areas will be guided by       forward through its sustainability              measure the key indicators early. Create
                           the organization. The environmental        planning and reporting activities, the          a sensible path for the organization.
                           effects of some organization               qualitative naturally moves towards             Stay focused on the triple bottom line.
                           activities may be quite small and          the quantitative. Complexity increases.
                           further reducing them would make           The meaning of its efforts and results
                                                                                                                      For more information regarding
                           little economic or social sense.           increases.                                      sustainable reporting, please contact
                                                                                                                      Michele Buckler, P.E., LEED AP BD+C
                           There is tremendous flexibility in           To avoid some of the pitfalls                 mjbuckler@ftch.com.
                           how an organization can present              to sustainability reporting, an
                           its progress and results. Some               organization could hire a third party
                           organizations rely strictly on               to verify the sustainability report.
                           presenting goals and progress                This may improve the credibility
                           in the form of metrics. Others               and transparency of the information



                          www.ftch.com/concepts

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Sustainability Reporting: What is Just Right for your Organization?

  • 1. Concepts Fishbeck, Thompson, Carr & Huber, Inc. January 2013 Sustainability Reporting: What is Just Right for your Organization? As the need to demonstrate sustainability allows them to demonstrate their interest in with respect to economic and social continues to become more important for both the internal and external community; considerations. municipalities, companies, and institutions, it builds trust and promotes transparency; voices demanding transparency and and solicits feedback on performance from a Determining the best sustainability reporting accountability are growing louder. diverse set of stakeholders. framework to adopt is dependent on your organization’s structure and objectives Disclosing sustainability planning efforts and As a practical matter, there is no need to for reporting. Common frameworks like results helps satisfy stakeholder demands tackle every sustainability-related issue on the Global Reporting Initiative (GRI) are for transparency. These efforts require a good the horizon. An organization should focus on well-suited for a multinational corporation deal of vision and strategy. Revealing too its core value issues, or core performance but may be too lengthy and complex for much or too little each has its own risks. indicators, that are relevant to its operations organizations like municipalities or small and activities. Determining the “materiality” businesses. ICLEI – Local Governments for What do you do? of each focus area Sustainability offers a What protocols do you follow? allows an organization to an organization should develop a tool-kit and guidance to How do you spend your time and resources? use its limited resources relevant framework based on suitable its municipal members. Aggressive sustainability reporting protocols to analyze the issues protocols that is challenging and There are also sector- that will resonate with are being used by a variety of organizations its stakeholders. For helps it to identify, deliver, and track based frameworks that may be explored for and becoming commonplace to frame communication with stakeholders. These instance: sustainable outcomes. universities, hospitals, standards focus on a customized mix of • A manufacturer could focus on improving and non-manufacturing social, economic, and environmental metrics the recycled content of its product companies. Protocols should be looked or indicators (triple bottom line). The instead of investing in selected high-cost, upon as reference tools, not requirements. selected metrics or indicators are intended low-return alternative energy technology Because there are no mandatory or market- to increase transparency so stakeholders that does not support its core values. preferred protocols, have a better view of the organization’s true an organization should develop a relevant • A city could evaluate and report on framework based on suitable protocols that performance and ability to stay healthy in its “walkability,” which measures how is challenging and helps it to identify, deliver, the long term. These stakeholders include: a friendly an area is to walking, and and track sustainable outcomes. municipality’s residents and business owners; includes a variety of indicators such as a company’s customers and shareholders; or safety, access to businesses or schools, The major focus areas for measuring an institution’s patients, students, alumni, and connectivity to public green spaces. sustainability success include environmental, and faculty. economic, and social. • An institution might focus on the The benefits to an organization that tackles efficiency of how it delivers core services quality sustainability reporting are clear: it
  • 2. Pro Sustainability Planning in Practice le fit FTC&H is helping a diverse set of clients define sustainability plans and connect programs to their overall strategy. Our team of engineers and scientists are helping guide a collaborative op sustainability planning process of selected counties and cities in Michigan. These projects Pe help define and catalog the best planning practices and ultimately draw them together into a tool-kit for use by other communities. One of FTC&H’s large industrial clients needed help developing greenhouse gas inventories for its global manufacturing operations. This simple project demonstrated how interconnected the energy consumption and environmental issues Planet were. Management realized the need for more comprehensive sustainability planning, and they looked to FTC&H to provide support. Our integrated multidisciplinary teams developed programs to help the client satisfy its triple bottom line. TABLE 1 . Examples of Key Indicators Organization Type Desired Outcome Environmental Economic Social ty ipali Water consumption Cost of water supplied Number of annual nic Reliable water services u per capita per capita boil water alerts M i al Reduced energy in Greenhouse gas emissions, Greenhouse gas emissions u str Energy costs Ind manufacturing operations indexed to production avoided, in metric tons o n ati Stormwater managed onsite, Research dollars connected uc Green infrastructure Building energy index Ed gallons per year to green infrastructure h alt Improved medical waste Cost of waste management, He are management Waste generation, per patient per patient Community sharps program C all s Life cycle assessment Sm ines Business longevity Customer base diversity Management transition s of products or services Bu Many indicators fit into all present long case studies on programs provided. The results of the external categories depending on how they developed specifically to improve the verification can help an organization are defined by the organization organization’s sustainability. reevaluate and strengthen its framework and the metrics selected to define for future improvements. the baseline conditions and Organizations target outcomes. Examples of major focus area s for that develop Conclusion key metrics or indicators are in measuring sustainability and report on sustainability Careful sustainability planning and table 1. success include measures must reporting can enhance an organization’s It is most beneficial to include environmental, economic, be mindful it longevity and reputation. The key narrative and metrics for all is not a one- is to stay focused on sustainability three focus areas­ social, — and social. time effort. practices and indicators related to core economic, and environmental. How It takes consistent evaluation and values. Start small. Establish goals that much emphasis is placed on each attention. As an organization moves challenge the organization. Define and of the three areas will be guided by forward through its sustainability measure the key indicators early. Create the organization. The environmental planning and reporting activities, the a sensible path for the organization. effects of some organization qualitative naturally moves towards Stay focused on the triple bottom line. activities may be quite small and the quantitative. Complexity increases. further reducing them would make The meaning of its efforts and results For more information regarding little economic or social sense. increases. sustainable reporting, please contact Michele Buckler, P.E., LEED AP BD+C There is tremendous flexibility in To avoid some of the pitfalls mjbuckler@ftch.com. how an organization can present to sustainability reporting, an its progress and results. Some organization could hire a third party organizations rely strictly on to verify the sustainability report. presenting goals and progress This may improve the credibility in the form of metrics. Others and transparency of the information www.ftch.com/concepts