Sustainability as a business strategy

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Sustainability as a business strategy

A pragmatic approach

• Presenter Alan Barrett

9th May 2008
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What if?

• Government wished you to embrace a sustainable
  approach to providing goods and or services
• Possible options
• Ignore
• Comply
• Embrace the opportunity
• Consumers, customers and /or clients wished to
  buy or receive goods only from organisations that
  were committed to sustainable practices

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So is it to be denial or an opportunity?

• Faced with the choice between changing one's mind
  and proving that there is no need to do so,
  almost everyone gets busy on the proof. 
• John Kenneth Galbraith

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Clients experience - How this worked in practice?

• Agreed approach Strategy must equal execution
• Supplier segmentation
• Assessment and metrics
• Measurement
• Leading to the definition of the Operational
  How
• Process
• Training
• Support
• Communication

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Approach making it clear

• Categorisation of projects and or needs according
  to their complexity.
• Classification of suppliers into, supplier
  types.
• Define levels of sustainability measurement for
  suppliers.
• Assign weightings for supplier evaluation which
  include elements of sustainability.
• Setting the project type/ supplier category/
  sustainability measurement level matrix.

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Step 1 Complexity affects procurement approach

• Urgent
• Scheduled
• Maintenance
• Project
• Facility
• Other

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Step 2 - Supplier segmentation make it clear
for all

• Potential
• Actual
• Preferred
• Panel
• Partner

Benefit required Clarity for all parties. It
is efficient and effective giving a uniform
approach that is easy to administer.
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Step 3 - How to select suppliers based on their
sustainability credentials?

• What to look for
• What questions to ask
• How to categorise them
• How to rate them , and
• How to use this information in a pragmatic way

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What to look for

• Sustainability varies by complexity impact
• Starfishs 6 categories for sustainability
• Social
• Environmental
• Economic
• Ethical
• Institutional
• Technological

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What questions to ask
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How to categorise them
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How to rate them

• Each of the 6 dimensions of sustainability have a
  level of maturity level 1 through 5
• Answers to questions allows a rating to be made

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How to use this rating
Create a Sustainability Matrix
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Step 4 Assigning weightings for evaluation

• Institutional
• Technical
• Ethical
• Economic
• Social
• Environmental

Metrics and measurement are a matrix between
category or type of need and sustainability
impact
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Step 5 Setting the sustainability matrix
Know what is required
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How this works in practice
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• Change is inevitable - except from a vending
  machine.  Robert C. Gallagher

Questions?
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