Practical Sustainability Strategies: How to Excel in ESG and Gain a Competitive Advantage provides the essential tools needed to implement ESG (Environmental, Social, and Governance) frameworks. With a strong focus on actionable strategies and practical applications, this real-world guide offers expert insights into how sustainability can drive corporate success while benefiting the environment and society.
In-depth yet accessible chapters bridge the gap between theory and practice, arming readers with proven frameworks to align organizational goals with global sustainability standards. The book covers the latest ESG trends and includes real-world case studies to help readers navigate the evolving landscape.
The updated and expanded third edition builds on previous insights by incorporating the latest trends, tools, and guidelines, including an entirely new chapter on ESG and circular economy, to ensure that businesses stay ahead of the curve. Laying out a clear path to building sustainable, competitive businesses, this book: - Provides the tools and knowledge required to communicate, measure, and report ESG metrics- Empowers organizations to lead with transparency and accountability, positively impacting both their bottom line and the wider world- Includes PowerPoint slides for instructors and trainers to facilitate effective teaching and learning- Addresses both advanced and specialist levels, suitable for professionals and students at various stages in their careers- Contains numerous case studies and practical templates based on Global Reporting Initiative (GRI) Standards
Ideal for graduate-level students studying sustainability, corporate social responsibility, business strategy, and corporate governance, Practical Sustainability Strategies: How to Excel in ESG and Gain a Competitive Advantage, Third Edition is also a valuable resource for C-Suite executives and sustainability managers, including Chief Sustainability Officers looking to deepen their knowledge and improve their organization’s ESG performance; as well as for government organizations and NGOs.
Table of Contents
Preface of George P. Nassos xvii
Preface of Nikos Avlonas xxi
About the Companion Website xxiii
Part I Introduction to Sustainability and ESG Concepts 1
1 Urgency to Adopt Sustainability 3
Creation of the Environment 4
Exceeding the Ecological Footprint 5
The Limits to Growth 6
Consumption Factor 9
Conservation of Water 10
The Depletion of Fossil Fuels 12
Climate Change 13
Population Growth 15
The Environment’s Big Four 16
References 17
2 Development of the Sustainability Concept 19
Sustainability and the Triple Bottom Line 20
Advent of Corporate Social Responsibility (CSR) 21
Along Came ESG (Environmental, Social, and Governance) 23
The Sustainable Development Concept Thousands of Years Ago 23
The Next Phase of Sustainability 24
References 24
3 The Importance of ESG Criteria 27
ESG Criteria 28
Environmental Factors 28
Social Factors 29
Governance Factors 29
References 31
4 Legislation Leading to Sustainability 33
United States 33
Clean Air Act (1970) 33
Clean Water Act (1972) 34
Endangered Species Act (1973) 34
Corporate Average Fuel Economy (CAFE) Standards (1975) 34
Security Exchange Commission (SEC) Requirements 34
International 35
Montreal Protocol (1987) 35
Kyoto Protocol (1997) 35
Paris Agreement (2015) 35
Cop 28 36
Going Forward 36
References 37
Part II Sustainable Strategies 39
5 Imbedding the UN Sustainable Development Goals to Achieve Sustainability 41
UN 2030 Agenda 42
The 17 Sustainable Development Goals 43
A Further Look at the SDGs 48
Emergent Technologies 49
References 50
6 Addressing Climate Change 51
Energy: Wind Turbines (Onshore) 52
Energy: Solar Farms 54
Energy: Nuclear Fission and Fusion 55
Energy: Heat Pumps and Geothermal 56
Materials: Refrigeration 57
Materials: Alternative Cement 58
Food: Reduced Food Waste 58
Food: Plant-Rich Diet 59
Women and Girls: Educating Girls and Family Planning 60
Buildings and Cities: District Heating 61
Buildings and Cities: Insulation 62
Land Use: Tropical Forests 63
Land Use: Temperate Forests 64
Transport: Electric Vehicles 65
Transport: Ships 65
Top 20 Solutions 66
Implement Ucapture 66
Create Carbon Tax 67
Net Zero Versus Absolute Zero 68
Adaptation and Resilience 68
References 69
7 The Natural Step 73
The Four System Conditions for Sustainability 75
System Condition 1 - Substances from the Earth’s Crust Must Not Systematically Increase in the Ecosphere 76
System Condition 2 - Substances Produced by Society Must Not Systematically Increase in the Ecosphere 76
System Condition 3 - The Physical Basis for Productivity and Diversity of Nature Must Not Be Systematically Diminished 77
System Condition 4 - There MUST Be Fair and Efficient Use of Resources with Respect to Meeting Human Needs 78
Scientific Rationale for The Natural Step 79
The Natural Step Projects 80
Interface - The First Company to Adopt The Natural Step 80
The challenge 80
The result 80
Nike 81
The challenge 81
The result 82
Max Hamburgers 82
The challenge 82
The result 82
The Circular Economy 83
References 83
8 Eco-Effective versus Eco-Efficient 85
Fuel Efficiency 86
Computing Efficiency 87
More Durable Brake Pads 88
Increase Polymer Recycling 88
Reduced Sewage Effluent 89
More Efficient Clocks 90
Cradle to Cradle 91
Step 1 - Get Free of Known Undesirable Substances 91
Step 2 - Follow Informed Personal Preferences 91
Step 3 - Creating a “Passive-Positive” List 92
Step 4 - Activate the Positive List 92
Step 5 - Reinvention 93
Eco-Effective Versus Eco-Efficient 93
Do Not Take It To the Extreme 94
References 94
9 Dematerialization - or - Servicizing 97
Sell Illumination 99
Sell a Painted Car 100
Sell Floor Comfort and Aesthetics 100
Sell Water Treatment Services 101
More Servicizing Examples 101
Castrol, Inc. 101
Carrier 102
Herman Miller (Coro) 102
References 102
10 The Evolution of the Sharing Economy 103
Generation Share 105
Collaborative Consumption 105
Class Final Projects 106
Medication Delivery 106
Refill Perfume Shop 106
Luggage 107
Home-improvement Paint 107
Nutrient Services 107
Baby Mattresses 108
Seat-Go-Round 108
Bike Helmets 108
Q Card for Better Transportation 109
References 110
11 Adopting Systems Thinking - or - Tunneling 113
System Elements 114
System Interconnections 114
System Function or Purpose 115
Tunneling Through the Cost Barrier 116
Interface Pipe Design 117
Reducing Oil Imports 119
Reducing Carbon Dioxide Emissions 119
Illegal Immigration 120
Sailboat Design 121
Systems Thinking in Action 121
Costco Wholesale and Organics 121
Google and Renewable Energy 122
Subaru and Zero Waste 122
References 122
12 Environmental Innovation Through Biomimicry 125
Abalone 126
Spider Silk 127
Bivalves 128
Rhinoceros 129
Fish-inspired Travel 130
Cheetahs 131
Compact and Efficient Structure 132
Ethanol 136
Color from Structure Rather than Pigments 136
Cricket Sounds 138
Bio-inspired LEDs 139
Lessons from Lavasa 139
Owl Wings Inspire Wind Turbine Blade Design 140
Shaving Razors Inspired by Frog and Cricket Legs 141
Additional Technologies Inspired by Biomimicry 142
Mindful Mining: A Proposal 144
Introduction 144
Business as Usual 145
Business Unusual: Proposed Business Model 145
References 146
13 Base of the Pyramid 149
The Great Leap Downward 150
Electrify the Bottom of the Pyramid 153
Hindustan Lever and Nirma 154
BOP Protocol 155
Initiatives by the World Resources Institute 155
Developing the Bottom of the Pyramid 156
IstheBaseofthePyramidaMirage? 158
References 159
14 Environmentally Effective Buildings 161
Net-Zero Energy Buildings 168
LEED Project Certification Process 168
LEED Accredited Professional 169
Living Building Challenge 170
World’s Greenest Building 172
The WELL Building Standard 174
Breeam 175
Passive House 175
Other Building Certifications 176
References 177
15 The Development of the Circular Economy 179
Kalundborg Symbiosis 179
Earlier Model 181
Terracycle Introduces “Loop” 182
Close the Loop 182
Designing for the Circular Economy 183
The Ellen Macarthur Foundation 183
Quantity of Waste for the Circular Economy 185
Personal Note 186
References 187
16 The Circular Economy Through Energy Recovery 189
Understanding Waste Management 189
Waste-to-Energy Systems 191
Incineration 191
Combined Heat and Power (Cogeneration) 192
Combined Heat, Power, and Cooling (Trigeneration) 193
Pyrolysis 194
Gasification 195
Anaerobic Digestion 195
Waste to Sustainable Aviation Fuel 196
The Challenges of Waste-to-Energy Initiatives 196
The Future of Waste-to-Energy Initiatives 197
References 198
17 Building Resilience to Climate Change 199
Introduction 199
Interconnectedness of Climate Risks in a Globalized World 200
Case Study Example 1: The Syrian Drought 200
Case Study Example 2: The 2011 Thai Floods 200
Actionable Insight 201
Large-Scale Climatic Shifts 201
Case Study Example 3: Managing Climate Risks Can Enhance License to Operate 201
Actionable Insight 202
Building Resilience 202
Case Study Example 4: Extractives Sector Partners with Government and Communities to Fight Malaria in Mozambique 203
Link to the Iceberg Model 203
Using the Case Study with the Iceberg Model 203
Actionable Insight 203
The Strategy Development Process 203
Actionable Insight 204
Conclusion 205
References 205
18 Emergent Technologies: Pioneering Sustainable Futures 207
Technological Innovations Driving Sustainable Development 208
Clean Water and Sanitation (SDG 6) 208
Affordable and Clean Energy (SDG 7) 209
Industry, Innovation, and Infrastructure (SDG 9) 210
Case Studies: Successes and Challenges 211
(SDG 1): Mobile Banking in Sub-Saharan Africa 211
(SDG 2): Precision Agriculture Technologies in India 211
SDG 3: Telemedicine in Rural China 212
SDG 11: Sustainable Cities and Communities in Chinese Cities 212
The Impact of Smart City Pilots on Clean Energy Development in Chinese Cities 212
Impact of Digital Transformation on Resource Efficiency (SD12) 213
Technologies and the Circular Economy (SDG 12 & 13) 214
Policy Frameworks and Regulatory Considerations 215
Strengthening Institutions (SDG 16) 215
Governance and Transparency 215
Legal and Regulatory Frameworks 215
Fostering Partnerships (SDG 17) 215
Multi-Stakeholder Collaboration 215
International Cooperation 216
Policy Recommendations for Enabling Technology-Driven SDG Approaches 216
Developing Inclusive Policies 216
Technological Equity and Accessibility 216
Challenges and Ethical Considerations 218
Conclusion and Way Forward 218
References 220
Further Reading 222
19 More Sustainability Strategies and “Big Hairy Audacious Goal” 225
Green Chemistry 225
Nanotechnology 228
“Big Hairy Audacious Goal” 233
Washing Machines 233
Toilets 233
Urban Farming 234
References 237
20 Sustainable Strategies and Beyond 239
References 241
Part III Tools and Metrics 243
21 Standards and Guidelines for Managing Sustainability and ESG 245
Need for a Sustainability and ESG Strategy 245
Managing Sustainability and Standards 246
Case Study: Unilever’s Sustainable Strategy 248
Global Reporting Initiative (GRI) and Stakeholders 249
GRI Interpretations of Stakeholder Engagement 250
The Stakeholder Reporting Process 250
United Nations Sustainable Development Goals (UN SDGs) 251
Case Study: General Motors - 2022 Sustainability Report and Supplement 252
Report Extract 252
United Nations Sustainable Development Goals (UN SDGs) 252
Sustainability Accounting Standards Board (SASB) 252
Task Force on Climate-related Financial Disclosures (TCFD) 263
International Sustainability Standards Board (ISSB Standards) 263
SEC Climate Rule 264
ESRS European Sustainability Reporting Framework 265
Corporate Sustainability and ESG Trends 266
References 268
22 The Corporation and Its Stakeholders 271
Examining the Stakeholder Concept 271
Stakeholders: Definition - Primary and Secondary Stakeholders 272
Case Study: Campbell Soup Company - 2022 Corporate Responsibility Report Extract 273
Stakeholder Engagement 273
Stakeholder Relations and Attributes - Power, Legitimacy, and Urgency 273
Case Study: TD Bank - 2022 Environmental, Social, and Governance Report Extract 277
Stakeholder Engagement 277
Balancing Stakeholders’ Expectations 277
Case Study: Canon - 2023 Sustainability Report Extract 281
Stakeholder Engagement Approach 281
Materiality Assessment 282
Materiality Matrix 285
Double Materiality 285
Case Study: Unilever - 2022 Material Sustainability Issues 286
Materiality Assessment 286
Defining Our Material Sustainability Issues 286
Our Latest Materiality Assessment 287
Phase 1: Issue and Topic Identification 287
Phase 2: Issue Prioritization 287
Phase 3: Strategic Alignment and Disclosure 288
Phase 4: Communicate Materiality Analysis Outcomes 288
Benefits from the Corporation’s Responsible Behavior: The Sustainability (ESG) Debate 288
References 290
23 Sustainability (ESG) Reporting 293
Context of Reports 293
Changes Over the Years 294
2022 Keurig Dr. Pepper Corporate Responsibility Report 295
Approach to Reporting 295
Reporting Standards 295
Materiality 295
Assurance 296
Requests for Information 296
Johnson & Johnson 2022 Health for Humanity Report 296
About This Report 296
Materiality Approach 297
Independent Review and Assurance 297
Acquisitions 298
B Corporation 298
Sustainability in the Supply Chain 299
EcoVadis 299
CSDD-Due Diligence 300
Sustainability (ESG) Reports and Impact Investments 301
ESG Ratings 301
Center for Sustainability and Excellence 2023 Research - ESG Performance and Profitability 303
Case Study: Marks and Spencer Plan A Report 2018, Plan A 2025 and Our Strategy - Helping to Make M&S Special Again 304
Transformation Timeframe 304
Starting Afresh 304
Step One: Restoring the Basics 304
Step Two: Shaping the Future 305
Step Three: Making M&S Special 306
STARS Framework 306
References 307
24 Sustainability and ESG Metrics for Improving Impact 309
Metrics in the GRI Guidelines and ESG Ratings 310
Case Study: ABM 2022 Environmental, Social, and Governance Impact Report 310
GRI Index 311
Ecological Footprint 314
Metrics for Carbon Footprint 315
Life Cycle Assessment (LCA) 316
Balanced Scorecard 317
How Metrics of Sustainability Can be Used (e.g., Assessments and Audits) 317
Case Study: The Hartford - 2022 Sustainability Report 318
Sustainable Value and ESG 318
Environment 318
Social | Employees 319
Social | Customers 319
Social | Community 319
Governance 319
Our Sustainability Strategy 319
Metrics and Sustainability 319
References 321
25 Carbon Footprint Reduction and Net Zero 323
World Population and Energy Consumption 323
Energy Consumption and Global Warming 323
Climate Change and Carbon Footprint 324
Carbon Emissions and Net-Zero Carbon Footprint 325
What is Net Zero and How to Achieve it 326
Net Zero Case Study 326
LCA and Measuring Carbon Footprint 327
Greenhouse Gas Protocol (WRI) 328
LCA and Product Labels 329
Cases for Carbon Footprint 330
Carbon Offset and the Gold Standard 332
Carbon-Offset-Projects: India, Clean Biogas for 7000 Families 333
References 334
26 Water Footprint 337
Overview 337
Guidelines for Measuring the Water Footprint 338
Water Footprint and LCA 340
Case Study: Coca-Cola Company’s 2030 Water Security Strategy 340
Nestlé 342
Dole Food Company 343
Water Footprint versus Carbon Footprint 344
References 345
27 Green Marketing and Communication and How to Avoid Greenwashing 347
Green Communication and Greenwashing 347
Green Marketing, Communications, and Sustainability 349
Green Marketing 350
Materiality and Sustainability 350
Guidelines for Green Marketing 351
Accuracy 351
Clarity 352
Sustainable Communications Strategy 354
The Importance of Social Media 357
The Importance of the Company Website 357
References 358
Part IV Epilogue 359
28 Epilogue 361
References 363
Index 365
