At Green Gov 2011 this morning I facilitated a lively panel that included discussion of what is  sustainability and what is the role of the sustainability profession. Ira Feldman (Greentrack Strategies), Terry Yosie (World Environment Center) and Valerie Patrick (Bayer Corporation) were our panelists and came with a rich set of views and experience.

The discussion of what is sustainability was broad and philosophical using terms like ‘systems thinking’ and ‘form of art’. But many people in the room (myself included) had sustainability jobs, with specific job descriptions and objectives.  So what can we compare that too ?

The more I think about it, the more I think that economics is a valuable analogy.  Economics is a broad topic about interrelationships and systems. I am sure you would find proponents of economics as a science and other proponents of economics as an art. Just like our discussion about sustainability.

And in companies you will find CFOs, accountants and accounts payable people. Just as you will find CSOs, corporate responsibility teams and energy management teams. And as the presence of finance folks doesn’t relinquish the rest of the company from the obligation to pay attention to cost and profit, so the presence of the sustainability folks doesn’t relinquish everyone else from the obligation to pay attention to the risk and opportunities of sustainability.

In so many ways I see sustainability  as analogous to economics. But where today we judge the success of so much through money and finance, sustainability asks us to take so much more into account in judging success of an organization or activity. Not just  financial impact, but a broad array of impacts on a broad array of stakeholders. 

Perhaps sustainability is not just analogous to economics. Perhaps it needs to take it on !

The leaves might be turning orange, but for BT this autumn has been all about green.  In the last month BT has been recognized by two major news organizations for their commitment to ‘green’ business practices.

The Newsweek/Daily Beast report ranked companies on their overall commitment to green business practices.  BT was the highest ranked ICT provider in 6^th place and recognized for its commitment to setting sustainability goals and meeting them consistently, for funding alternative energy sources, and for being the Sustainability Partner for the 2012 London Olympic Games.

Since I wrote about it last, Newsweek has made some significant changes to their rankings methodology that in my view improves the program. Most importantly the program is both more objective and also more transparent.  I addition, it now includes the Fortune 500, where last year it only covered the Fortune 100. This means BT is included in the ranking now, which it turns out, is great news for us!

Meanwhile, Computerworld 2011 Top Green-IT Vendors’ report ranked global corporations on how their IT departments’ are using technology to lower overall energy consumption and reduce their carbon footprint.  BT ranked a commendable 8^th place with the likes of Hewlett-Packard and Microsoft also making it in to the Top 10.

While these commendations are certainly gratifying, we know that we still have a long way to go in our sustainability journey as an organization.  As ICT evolves we have more options for helping our customers with programs such as teleworking, transport and logistics efficiency, and buildings energy management. But technology uses energy too, and we’re continually striving to find the optimal balance.  And then there are topics of broader resource and of societal sustainability in, developed economies and in emerging markets, such as Brazil and India; how can we enable sustainable business practices ahead of the curve?

These are the questions that I enjoy exploring on CSR Perspectives and as part of BT’s CSR team.  What do you see as the most pressing sustainability issues for global corporations?  Drop me a line, or let me know in the comments.

10 November 2011 postscript;  Thrilled that BT was today announced as a recipient of a 2011 Supply & Demand Chain Executive Green Supply Chain Awards which “honor companies that are working to achieve measurable sustainability goals within their own operations and/or supply chains in the areas of sourcing/procurement, fulfillment/logistics, operations, product lifecycle management, and other areas of the supply chain.”

I am facilitating a panel at GreenGov next week on the subject of the sustainability profession.   One of the topics I have discussed in preparation calls with the panelists is whether there are differences between the role of a sustainability professional in a government department and one working in a company. [Spoiler alert] The conclusion is that there are some differences but many more similarities. We will address this further in the panel on Wednesday next week but you will have to come along if you want to hear about them.

 My preparation has had me thinking yet again about the difference between corporate responsibility and sustainability. I posted a pictorial blog about this topic here only a week ago.

While there is no conflict with having a sustainability practitioner in a government department, it is somewhat obvious that you cannot have a corporate social responsibility professional in a government department.   The primary mission of government is to deliver public policy and services that meet the broad needs of society (and indirectly of environment to whatever extent you consider that environment brings benefit to society). Therefore, we would hope that everyone in government is responsible in that regard as part of their basic set of objectives.

 The primary mission of a corporation in contrast is to deliver returns to shareholders. One could argue that more progressive companies define their mission as to deliver services that their customers want,  and that in so doing they will also deliver good returns to shareholders. But either way,  the primary defined mission of most corporations is not to deliver broad public and societal good.   Looked at in this context, the role of corporate responsibility is to address the tension that can exist between the needs of customers and investors on the one hand and the broader public good on the other. 

 So you can have a sustainability officer in a government department (or a non-profit for that matter) as the role need not be defined by presence or otherwise of a profit driver. But the role of the CSR practitioner is defined in the context of the profit mission of companies.

 If you are coming to GreenGov 2011, please join us in the Education and Education stream on Wednesday at 8.30 where I have the honor of moderating a panel with Valerie Patrick of Bayer Corp, Ira Feldman for the  International Society of Sustainability Professional and Terry Yosie of the World Environment Center.

 Also consider taking a look at these links for the Association of Climate Change Officers and Corporate Responsibility Officers Association (in which I am involved) for perspectives on these related and evolving practices.

Last month it became official: the Washington DC metropolitan region has the worst traffic in the country.  The Texas A&M study confirmed what all of us who live here know, that trying to get anywhere during ‘rush hour’ will make you lose days of your life.  In fact, the study estimates that a typical commuter will spend three days a year sitting in traffic.  And traffic is so bad in the region that even our bike paths experience gridlock too!

While many businesses in the region are strong proponents of telework and pioneers in the technology that makes it possible, many employees at small and medium size businesses miss out on the opportunities because of lack of resources.  But now, the Commonwealth of Virginia is seeking to expand the reach of telework by offering tax breaks of $1,200 per employee to a maximum of $50,000 to fund the purchase of equipment over the next two years.  To be eligible businesses must apply to the Virginia Department of Taxation by October 31^st.

As my regular readers know I am a huge proponent of teleworking. It has so many benefits for the individual, for the company, and for the environment.  I hope that as many companies as possible take advantage of the program.

In an earlier post  I talked about the role of CSR in society and how it also helps the business. I see sustainability challenges reflected increasingly in discussions both I and my leadership team have with our customers.  Our customers (and in particular those from the sector for which I am responsible, consumer packaged goods) tell us that sustainability is among their top strategic priorities. I am thrilled to be working with companies such as Unilever, Pepsi, P&G, Nestle, Mars and others who are sustainability leaders in their sectors.  And my peers in other verticals look after customers in sectors such as agriculture and logistics that have connected sustainability challenges.

What sorts of challenges do we see?   Our business customers are facing an increasingly interconnected world where their consumer customers are expecting increasing amounts of information on the products they are considering buying.  They want to know the source of those products and their environmental and social impact. And they expect this information to be available to them when and where they want it, in an easy to digest form.

Companies see pressures on the availability of raw materials as populations grow and are lifted out of poverty.  Connectivity and IT technologies offer opportunities for increasingly efficient production of commodities.  Better, more timely information equals improved efficiency. So our planet’s limited resources go further.

Many of our customers describe challenges in their supply chains; especially, where large numbers of small farms are involved in developing economies. They want to support those small farmers and help them ensure their livelihoods are sustainable.  Connectivity and IT technologies offer the opportunity for better communication between large companies and large numbers of small farmers. They also provide potential for those farmers to increase their yields and profitability.

And between the farm and the supermarket shelf?  Telecommunications and IT is the enabling infrastructure for improved energy efficiency in manufacturing and in logistics. Our greatest role will come though solutions across sectors.

In my role at BT, I continue to see great opportunity to work with our employees and customers on sustainability and so magnify the positive impact of BT on society and on the environment. Let me know what you think.

Last weekend, the Washington Post carried an interesting article about the future of the light bulb business.  Energy to produce light contributes a significant proportion of our carbon emissions. The proportion of energy in a traditional incandescent bulb that produces heat, when what we want from it is light, is much too high.

The article highlighted for me many of the key principles that we need to incorporate as we move away from disposable, energy intensive consumerism, towards a more sustainable model;

• Per unit and up-front costs will often be higher for more sustainable products. Companies need to reset consumer expectations and/or come up with new models for financing such as leasing.

• Companies (such as Philips and Ikea highlighted in the article) that see the future and take the initiative will be better positioned to reap the rewards than the laggards who drag their heels.

• Solutions that adapt to and protect the existing infrastructure and investment of the customer (in the case of lighting this would be screw-in bulb sockets) will ease the transition.

• Companies need to create new marketing approaches internally and new consumer mind sets externally for products that were viewed as consumables to be viewed instead as durables.

• The very terminology ‘consumer’ implies the item is consumed, in the process of serving its purpose. Perhaps we need to come up with a better term!

• New measures are required. In the case of lighting, we must help people understand why lumens are the better measure for light after years of using wattage as the primary descriptor.

I cannot help but think back to the 1970’s when telephones were something that was leased from the phone company as part of the service. Separation of the telephone from the regulation of the telephone line enabled an explosion of creativity and enabled the wide range of choices we have today in telephones. But it also took us from a repairable, reusable device with replaceable parts and great longevity to an often substituted device where only the battery is replaceable and everything else is disposed of at end of life.

The principles we can draw from the lighting sector evolution can be applied to sustainable product development in other sectors and perhaps to broader sustainability also.

1) Corporate Responsibility

The understanding that (1) business is wholly dependent for its  continuing success on people (society) and resources (environment) and (2) that business has a significant  impact on society and environment.  The appreciation  therefore  that the success of both is interdependent.

2) Sustainability

Based on an ethical principle that gives future generations the same rights as today’s population, sustainability can be applied to any activity and calls on us to test that meeting the needs of today does not compromise the  needs of future generations. When applied to the activity of a company, this is one way of assessing corporate responsibility.

I’ve written more on this subject.  Check out:
Defining CSR
Ethics and CSR
Sustainability is Overrated

As our Americas president Kim McMann mentioned in her guest post, we recently joined, and made our commitment to, the Clinton Global Initiative.  Like me, you may have wondered what the CGI Annual Meeting is like. Other than the named member and select VIPs, the only other attendees are volunteers.  Bernie Shaw, a long time  BT colleague, has volunteered at the CGI Annual Meeting for a couple of years and kindly agreed to share her perspective on the event in this guest post.

Two weeks ago I volunteered at the CGI annual meeting in New York and it can only be described as a somewhat surreal experience, to see so many visionary people all in one place.

Mohammed Yunus, the winner of the 2006 Nobel Peace Prize for his work on microfinance in Bangladesh was there, as was Paul Farmer, the founder of Partners in Health. Also there (via video) – was Aung San Suu Kyi, the Burmese opposition leader. Hearing her speak about democracy and reconciliation without any trace of bitterness or anger was incredible. I personally find it difficult to comprehend how someone who has been imprisoned for almost 15 years can emerge from that ordeal with such grace, clarity of vision and true wisdom to share. It was reminiscent of listening to Nelson Mandela, following his release.

The corporate world was also very well represented and this year there seemed to be a growing acknowledgement of the importance of engaging with local communities. The CEO of Oando, an energy company operating in Nigeria, talked about building schools along a planned pipeline, before the pipes were even laid. This approach ensured that the local community saw direct benefits from Oando’s engagement in their region, which in turn created a more stable and secure business environment. Bob McDonald of Procter & Gamble talked about his company’s efforts to improve local healthcare standards and encourage girls to stay in school longer. These social investments helped to drive local economic growth, which in turn expanded the market for P&G products. McDonald maintained that the more social investing his company did, the greater the overall financial return it was likely to see. However, a challenge acknowledged by many CEOs was the difficulty in reconciling these social-based investment programs (critical to the longer term bottom line), against the quarterly demands of shareholders.

On the last day of the event, a young man walked past me and it took me a moment to recognize that it was Valentino Achak Deng. One of the lost boys of Sudan, Valentino had ended up living in refugee camps in Ethiopia and Kenya, before being resettled in the US.  Valentino made a commitment to CGI in 2007 that he would build schools in Southern Sudan. This year he reported back that there were now 350 registered students at his first school. While a major accomplishment, Valentino is now focused on trying to encourage more girls to enroll – by building dormitories, which he believes will provide a safe and more conducive environment in which to pursue their studies. In Southern Sudan, less than 1% of girls complete secondary education and an estimated 92% of women are illiterate. In order for Southern Sudan to build a sustainable future, the education of its young girls and women is critical.

Among all of the amazing achievements recounted at CGI, I find Valentino’s story truly inspiring. For me it reinforces that we just don’t know from what part of the world those brilliant minds will emerge, that will help us to successfully address the many challenges the world faces.

The various sessions at the CGI 2011 annual meeting can be viewed via the following website.

http://www.livestream.com/cgi_plenary

In September the National Employee Education Foundation (NEEF) and the GreenBiz Group released a report on how businesses can foster sustainable practices in business by empowering employees.

Companies such as BT, Proctor and Gamble, Johnson & Johnson, Kimberley-Clark, and Cisco Systems participated in the research and development of the report by contributing their experiences on creating innovative tools for employee engagement.

The report identified 5 key steps that companies should incorporate into their workplaces to promote and foster a culture of sustainability and generously credited me with help in developing the model. The first two steps came from a model I presented to the group, but NEEF and the other participating companies fleshed out my simplistic third step ‘harness’ into three actionable stages.

1. Permit: granting employees permission to become involved in sustainability initiatives.

2. Educate & engage: providing employees educational materials and engaging them in sustainability activities.

3. Act: empowering employees to take action at work, as well as at home and in their community.

4. Embed: making sustainability a regular part of their organizations, including their human resource processes, operations, product or service innovation & development, and beyond.

5. Evaluate: measuring and evaluating employee engagement efforts to gauge impact, support continued integration into company culture and inform future employee engagement efforts.

For me,  the most important decision  for a CR practitioner involved in employee engagement is whether you want to take a ‘policing’ approach or a ‘releasing’ approach.  By putting ‘permit’ first, the model takes a ‘releasing’ approach.

As a newcomer to the role some years ago, I overdid the policing approach. I couldn’t understand why employees who were involved in designing energy intensive data centers were getting worked up about theirr use of disposable cups and single sided photocopying, instead of focusing on the energy consumption of the data center. But my attempts to take them away from the cups and copiers backfired. They lost enthusiasm. I learned quickly,   I have since found it most  fruitful (and certainly more fulfilling!) to take a ‘releasing’ approach to my role .  Use communications to give people permission to get involved. That serves to release the pent up demand that I find is nearly always present amongst employees, Then our role as CR practitioners is to harness that energy by helping our  people understand what is really material and how to apply their  core competencies.

As CR practitioners we should be in the business of releasing, rather than policing,  the potential of our people to support society and the environment.

ICT services impact our every day lives from how we work, to how we travel to how we make purchasing decisions for our daily needs. In this video series, I examine all of these elements from inside executive offices, to transportation systems, inside grocery stores and even in my own home.

In this second episode, I explore the Washington D.C. Capital Bikeshare program and examine how sustainable travel can be user friendly and available to the community at large. The program makes available over 1100 bicycles across 110 stations to anyone in the D.C. Metro Area. Similar programs are run across the United States and in the UK.