4. Environmental sustainability seems to be a buzzword at present with Apple Inc., CEO Tim Cook and Virgin Group founder Sir Richard Branson both championing the cause. Can you outline how an organization can improve their own efforts?
As noted, environmental sustainability entails a number of considerations and is increasingly being viewed as good business. Heavily regulated industries, unlike those that are not, generally have a strong emphasis on regulatory compliance, because of the substantial sanctions associated with non-compliance. But all industries have market-based incentives to go beyond compliance and become--and to become perceived as--sustainable.
Sophisticated companies interested in becoming sustainable generally integrate concepts of sustainability into their decision-making rather than considering it as an afterthought. Wal-Mart for example has announced it is creating a sustainability index to measure various aspects of sustainability. And ExxonMobil recently agreed to publish a “Carbon Asset Risk” report, describing how it assesses its financial risks from climate change, including not only risks associated with having to manage carbon but also with risks associated with climate change, e.g., prolonged droughts and the effect on water-intensive crops.
There are a number of standards that companies may adopt to achieve sustainability. In 1996, the International Organization for Standardization (ISO) established ISO 14000, a family of standards addressing various aspects of environmental management. The purpose of ISO 14000 is “to provide a framework for a holistic strategic approach to the organization’s environmental policy, plans and actions,” which includes development of an Environmental Management System and a commitment to compliance, continual improvement, and prevention of pollution.
Corporate sustainability programs generally include as elements: strategic planning; corporate policies and goals, infrastructure, and procedures; a code of conduct; standards, manuals, and guides; stakeholder communication, including dialog and reporting; performance and appraisal metrics; and line responsibilities. ISO launched the development of a standard--ISO 26000--to provide voluntary guidance on social responsibility including an international consensus on what it means and the issues that need to be addressed and how best to address them. But under most formulations, a distinguishing feature of a corporate social responsibility program is the notion that long-term environmental, and social aspects, as well as economic aspects, be integrated into a corporation’s business strategy, rather than considered in isolation or as add-ons.