NEWS: Companies Reporting Sustainability Data Come Out On Top

As many of us have suspected, a recent report by GMA and PricewaterhouseCoopers titled “The Food, Beverage, and Consumer Products Industry - Achieving Superior Financial Performance in a Challenging Economy - 2008” now confirms that those companies which report sustainability data consistently generate higher cash flow, outperform on gross margins and return on sales, and experience rising shareholder return and higher return on assets than non-reporting businesses. Greater return on assets and cash flows can likely be explained by wise investment decisions and operational improvements. Better overall performance may be attributed to the following two explanations. First, sustainable practices often result in leaner operations which in turn yields cost savings on energy and inputs. Second, consumers support environmentally-conscious companies, paying a premium for goods produced through sustainable practice. Still, it may be too soon to determine if green companies are better at a) meeting consumer demand, and/or b) adapting to fluctuating markets, than non-green firms. We can, however, safely conclude that sustainable practice is paying off at the bottom line for those companies committed to green business.

VIEWS: Sustainability Consulting: One Size Does NOT Fit All

To remain competitive in an increasingly global marketplace, companies of all shapes and sizes and from different industries and sectors are introducing sustainability programs to gain a competitive advantage. Companies are expected to react to these changing dynamics and to address the changing consumer preferences for environmentally and socially sustainable products and services. The ideas of corporate social responsibility and sustainability are no longer fringe issues or passing trends, but are topping the list of strategic issues of executive management at Fortune 500 companies. Most multinational firms have incorporated some sort of sustainability initiative within operations, such as ethical sourcing, measuring and reducing carbon usage and recycling initiatives.

However, small- and medium-size companies are in a unique situation when it comes to sustainability. These firms don’t necessarily have the time, money or other resources to lead a full-blown, comprehensive sustainability program. Because of these differences, it is important to realize that sustainability consulting cannot be a “one size fits all” approach. What works for a Fortune 100 company most likely will not be a good fit for a small business. This is why it’s so important to hire consultants that really understand the process of developing and implementing sustainability programs, the resources available and constraints to expect, as well as the stakeholder “buy-in” necessary to execute a successful sustainability strategy for a small- or medium-size company. With these pieces in place, professional sustainability consultants can successfully navigate companies through the sustainability arena.

Sustainability consultants must remain flexible and adaptable, and should be competent in assessing the feasibility of programs and identify long-term opportunities and constraints. Consultants should recognize that a company typically cannot make one isolated change without addressing the impact of that change on other issues in the business. This “results-oriented” thinking ignores the complexity of execution and implementation of programs and does not provide opportunities for the necessary reflection and evaluation of the sustainability initiatives.

One of the key factors contributing to success of a sustainability plan is the level of collaboration and engagement among employees and other stakeholders during the planning process. This balance of top-down and bottom-up planning increases the likelihood of the plan gaining support and advocacy from stakeholders during the implementation phase. Finally, consultants should work with companies to plan long-term sustainability programs that are tied into business objectives, which will deliver a more integrated approach to sustainability. This is critical, as most “knee-jerk” programs that are not well-thought out, planned or executed have not proven to be very successful or sustainable.
If you are a small business that is interested in hiring a sustainability consultant, contact us for a free consultation. We can help you think through the best way to approach "going green" with special attention to your small business realities. Call (202-470-3248) or email us (info@sustainabilityconsulting.com) today!

VIEWS: Comparing CSR actions in the US and Europe

Thanks to our fall intern Heather Shand for the following comparison of corporate social responsibility in the US and Europe:

A recent study done by Germanwatch, an independent environmental group, has found that out of the 56 nations doing the most polluting, the United States ranks at the bottom of the list in its actions to protect the climate (just one country above Saudi Arabia).

In contrast, the top 10 nations who are doing the most to counter climate change are mostly European nations. Although the Germanwatch study was focused on countries as a whole and the impact they are having on the environment, the same trend follows with regard to CSR actions in Europe and the United States. Why is this?

Of course, not all European companies are picture perfect with their triple bottom lines, but in general the Europeans are significantly ahead in the race. Regulations are one reason for this. The European Union and its individual nations create and follow more stringent regulations than the United States. For instance, products such as toys, electronics and cosmetics that contain specific plastics, toxins or chemicals are not allowed into the EU. The European Union has found that these toxins or chemicals are either already harmful to people and the environment or MAY be harmful. This is a prime example of the EU taking a more pro-active approach through regulatory actions. They react to potential hazards and long term affects, whereas the U.S. government waits for absolute scientific proof before banning anything dangerous.

This type of forward thinking can be paralleled here in the States as recently proven by the state of California. Beginning in 2009, any product containing phthalates cannot be distributed, sold or manufactured in California. This will force companies to change their sourcing to become more environmentally friendly, resulting in fewer harmful chemicals ending up in both people and landfills.

Moral attitudes may be another driver of action versus inaction. US companies still need a financial incentive for becoming more sustainable, while European companies are more likely to make their financial, social and environmental commitments equal to one another. Even with the stricter regulations CSR reporting is still voluntary in the European Union, but individual countries and companies still show strength in their own progressive actions. France, for example was the first country in the world requiring public companies to produce CSR reports.

However, these attitudes are beginning to change in companies throughout the United States. Obviously the media has started making climate change a priority in their reports, which has helped the public learn that our personal actions and choices affect people and the environment around the world. The growing belief that producing goods and services with fewer negative social and environmental impacts can actually create a positive financial outcome is finally changing the attitude of larger U.S. corporations.

With regard to wide-spreading and possibly powerful regulations, we as citizens tend to have more influence on the state level as shown with California and its restriction on phthalates. Rather than waiting on the federal government to take steps, state level governments can begin their own campaigns to protect the environment and people. Consumer choice can force the hand of companies reluctant to jump on the green bandwagon. With consumers becoming more and more aware of where and how a product is made, many are beginning to make sustainable purchases and investments a priority.

So, while Europe has had much success due to regulations and being pro-active, it appears that one of OUR biggest assets in the United States for strengthening CSR is the individual. Many of us feel the importance of CSR and we have the opportunity to do as much as possible to incorporate it into the companies where we work. Many owners and employers are too busy to think about their eco-footprint, often allowing employees to take the initiative. Many times this begins with small steps, but an employee’s actions can gain rapid momentum resulting in a strong impact on co-worker and stakeholder actions. It is this chain of events currently being set in motion by individuals that will have a powerful influence on reducing our overall corporate environmental impact.


Sources:
The State Of Responsible Business; EIRIS; www.eiris.org

The Communication of Corporate Social Responsibility: United States and European Union Multinational Corporations; Department of Management at DePaul University study published summer 2007; http://www.springerlink.com/content/f83v0051353071r2/

http://www.allheadlinenews.com/articles/7008830327

http://news.yahoo.com/s/afp/20071207/sc_afp/unclimatewarminggermanysurvey

http://www.npr.org/templates/story/story.php?storyId=16616951

VIEWS: When Tech Support Doesn't Understand Energy Efficiency Questions

Note: The following missive comes from Scott Kleiman, one of SSC's Summer Interns. We thought it was a great story about how frustrating the pursuit of basic environmental information can be...and how important it is for companies to educate their employees about their corporate CSR issues...enjoy!

Strategic Sustainability Consulting publishes an annual Sustainability Report that reviews how effective we've been as a company in minimizing our firm's environmental impact as we work. As part of this effort, Jennifer asked each of the summer interns to track and calculate our own ecological footprints associated with our internships over the past several months.

Most of us work remotely, communicating primarily through conference calls, online "meetings," and email. Our efforts largely go towards supporting SSC's senior consultants' client-work, through researching company and industry information, brainstorming solutions, and helping write reports. We also contribute to SSC's ongoing knowledge base of solutions, case studies, webinars, and white papers. Consequently, the majority of our time is spent on computers. Indeed, as I put together my own footprint data, my largest impact was the electricity used by my 5+ year-old Dell laptop.

Having spent the summer reading and writing about specific strategies and steps for businesses to incorporate sustainability into their operations, and being familiar with Dell’s new energy efficient computing campaign, I expected determining the energy used by my computer to be a relatively straightforward process: multiply the watts used (a rate) by the number of hours I spent working at my computer for SSC, and I'd get a rough estimate of my total related energy usage for the summer (in Kilowatt-hours). How I was mistaken...

I purchased my computer before my freshman year of college, at that point of my life having little conception of energy efficiency, so I never thought to ask about my computer's energy footprint when initially configuring it. As I began looking for energy usage information, my first thought was that it would, of course, be noted among the maze of notations printed on the bottom of my laptop or its power transformer cube. Voltage requirements, as well as some other certification gibberish were there, but nothing specific about energy consumption.

Perhaps it was on the "Spec Sheet" Dell had included when it shipped my computer? Being the packrat that I am, I knew I had it stashed away in the front part of the second right-hand drawer of my desk at home, and I ran upstairs to check. Nope – it just showed me that I needed to clean my room.

“It’s the age of the Internet,” I thought. The information I didn't have myself should certainly be just a click away on the Dell website. After 15 minutes of navigating through endless attempts to convince me about the fantastic characteristics of Dell's many new computers that it sells, I concluded that my search terminology must have been wrong and decided to call Dell customer support.

The 20-minute call, which included 8 long minutes of listening to Dell's ubiquitous muzak, concluded with me trying to convince a supervisor that, "No, there's not a problem with my system. I just want to know its energy consumption. In watts. Please....". This was followed up by an email detailing instructions detailing how I should return my defective part to Dell, succeeded 2 weeks later by an express mailed Windows System Restore CD directing me to resinstall my operating system to fix my problem.

Realizing the phone call was fruitless, I returned to the Dell website and booted up their online chat for customer support. Maybe typing out my problems would overcome the language and/or culture barrier that seemed to be preventing the very nice customer support agent from understanding my question over the phone. I excerpt from the instant message conversation below:

Scott:	"I'd like to know about the energy usage of my Dell computer"
Scott:	"Dell Inspiron 8200"
Agent:	"I do understand that you are wanting to know the energy usage and I will do my best to assist you.
Agent:	"For references - The warranty expired on the system on 07.30.2005. Is this your first contact with Dell regarding the energy usage?"
Scott:	"I'm not sure --"
Scott:	"I'm not having a problem with my system"
Scott:	"I only need information about its energy usage"
Agent:	"Scott, allow me 3-6 minutes to research this information."
Agent:	"Thank you for holding. I do apologize for the delay. The power information that I have is that the system uses a 8 cell battery and a 65 Watt Adapter."
Agent:	"Scott, it has been a great pleasure working with you today. I'm going to send you some important information for your records. I apologize for its lengthiness. Let me know if you have any questions about it."

My struggle illustrates one of the many challenges that remain as both consumers and companies look for ways to become more sustainable. (To read how this same issue manifests for many corporate IT managers, check out Andrew Binstock's article "How Many Watts Does that PC Consume Exactly, and Why?" from GreenerComputing News.)

In many cases, the enthusiasm and marketing efforts voiced by high-level executives are not consistently matched by the products and employees that support them. As Dell aims to be a leader among computer manufacturers in selling environmentally responsible systems, it must ensure that relevant environmental impact information about its products is both easily available for consumers online, and that its customer support staff understands corporate priorities in being able to communicate that data.

Even if new, environmentally innovative product lines are slower to evolve than the processes to publicize those accomplishments, developing corporate habits of transparency and openness towards customers can go a long way to helping companies of all sizes and sectors attract the attention of the new green consumer audience.

Neil from Dell Responds (in record time!):

I’m at Dell Headquarters in Austin, Texas and I just read the post on your blog but comments were disabled. I’ve worked in support here at Dell for a long time on the phones, in chat queues, and now in the blogosphere and can honestly say that I’ve never heard that question so I had to do a bit of looking around. What I found was a site; dell.com/energy, that has energy calculators and other info that you were seeking, only not for the system Scott has. I was only able to find it for later model servers, workstations, and the Optiplex and Latitude lines of desktop and notebook computers.

I realize this isn’t ideal for consumers with Inspirons and would imagine that as more consumers begin to seriously factor that sort of thing into their purchase, it will become available. I haven’t been a part of this site so I don’t speak from experience on this, but I would guess that the reason only the newer models of business machines were featured is that it is only a consideration for companies going forward and other factors will still dictate when the current systems are to be phased out either way. I can inquire about a specific system if you’d like but I think the general rule of thumb with the newer, dual-core machines is to enable the power saving features, kill unnecessary visuals, and not leave it on unnecessarily. If there’s any info you’d like me to find, I’d be glad to try and help track it down.

News: Can sustainability and globalization co-exist?

In a report released by Shell, Ford, Novo Nordisk, Vodafone, The Skoll Foundation and others, globalization and sustainability are assessed within the frame of 21^st century business. The conclusion: “there is no more business as usual.” The report, entitled Raising Our Game: Can We Sustain Globalization, was released by consulting firm SustainAbility. The report illustrates four different scenarios for 2027, titling each scenarios after a card suit. The best scenario, “Hearts,” depicts a neo-renaissance of politics, economics, and sustainability coalescing homogenously.” Diamonds,” the worst scenario, depicts democratic lifestyles sweeping the globe, and destroying ecosystems and disabling decision makers and inhibiting society’s ability to respond.

The report outlines seven recommendations:

• Plan for the unexpected
• Focus efforts in areas of developing needs and booming populations.
• Over time, a blended value bundle will be the norm in future business.
• Work to increase Earth’s “immune system” through market intelligence and creation. Be a source for help.
• Find opportunity in social and environmental issues
• Step outside the comfort zone to find new innovations, technologies, and solutions.
• Get involved in the politics, and find the vision, courage, and innovation to lead your company into the next business sphere.

If your organization needs help thinking through these issues, why not contact SSC for a consultation?

NEWS: College students are concerned about the environment more than jobs.

A survey was conducted of more than 400 college students of the class of 2011 and their parents to determine whether or not there has been any change in overall attitude over a generation. The study found that while parents were more concerned about post-graduation employment, the college students were, in fact, more concerned about the environment. Both groups were equally concerned with making enough money to be self-sustained, good grades, and keeping up with schoolwork. Of the students polled, 18% stated that the environment was their biggest social concern. Also, 91% stated they would pick an employment position they were passionate about over earnings. When the class of 2011 graduates, time will tell if these ideals hold true.

VIEWS: Measuring CSR

How do we measure corporate social responsibility? Sir Andrew Likierman, Professor of Management Practice in Accounting and Acting Dean at London Business School, recently wrote about the topic. Titled, “Acting ethically - and being able to prove it,” Likierman argues that since companies set the CSR tone, there is no agreed upon definition. Likierman believes that in order to measure success, company CSR goals must be matched against their relative successes.

Likierman has four ways to approach such measurement:

• First, companies must link CSR goals to tangible objectives that can be met, such as the amount of money invested in internal or social programs, or by financial performance.
  
• Second, measures must be actionable and linked to outcomes. They should be broken down into informative levels that can be measured against external, established measures and successes.
  
• Third, measurements should be based on credible data. Measures should be clear, and based over a long period of time to ensure transparency.
  
• Fourth, recognition of measurement limitations. A good measurement framework is essential for credible measurements, but it isn't always sufficient to capture the intangible value of CSR.
  

We couldn't agree more.

VIEWS: What Makes An Accountable Supply Chain

We've talked recently about the importance of ethical supply chains. Now, I'd like to share more about SSC's approach to supply chain management, and the three components we consider to be critical in creating a successful and accountable procurement plan:

1. Policies – the first step in creating a “green supply chain” is to identify the key environmental impacts of your products/services and create a policy that specifically addresses those areas. For example, if your company makes electrical components (e.g. semiconductors), then your key environmental impacts during the production process are a) toxic chemical use during production, b) energy use, and c) water use. So your policy should explicitly address the need to find eco-friendly alternatives for those areas. Whereas, if you are a basic office (without manufacturing), then your key environmental impacts have to do with land/building use and office supplies. Your policy then should deal specifically with infrastructure (green building, etc.), energy, and office materials.

2. Programs – the next step is to set up a purchasing program that integrates traditional metrics (price, quality) with environmental (and sometimes social) indicators. There are a variety of ways to do this, and we specialize in helping our clients figure out a way to maximize their eco-priorities without sacrificing material availability and profitability. There is also a component of marketing here, since consumers will often pay a premium for eco-products, and this should factor into the purchasing program’s structure.

3. Performance – the final step is to actually implement the program, and here is where we provide supply chain auditing services. Sometimes we review suppliers that are already being used, to judge whether they are meeting the policy’s goals. Other times we seek out new suppliers, especially when the supply chain is not already well-established. Ideally, any committed company factors in an annual review of their suppliers, to ensure that their policy/program is working correctly, and here we help too.

If your organization is ready to take a look at its supply chain from a social and environmental responsibility veiwpoint, please email me at jennifer@sustainabilityconsulting.com for a free consultation. Getting started is easier than you think!

VIEWS: Ethical Supply Chain Trends for 2007

VIEWS: Ethical Supply Chain Trends for 2007

The following predictions come from an article in the Responsible Sourcing blog, and while it didn't come straight from my own brain I can't agree more with their forecast.

Trend One: Supplier Ownership

More and more companies are looking to engage suppliers in creating sustainable improvements that will positively impact the lives and conditions of workers. To do so, brands and buyers are promoting the adoption of management systems that will help suppliers run more efficiently as well as manage social compliance issues in a planned and organized manner.

Trend Two: Collaboration

Brand and retailer initiatives continue to emerge with the goal of fostering collaborative approaches to responsible sourcing. Following in the footsteps of the Fair Labor Association and the Ethical Trading Initiative, there is also the Business Social Compliance Initiative in Europe, l'Initiative Clause Sociale in France, and CSC9000t in China. Some initiatives focus around sharing assessment results and working together to promote improvements in like-supply chains…[and] more and more stakeholder initiatives are emerging that are sector-specific, including the Electronics Industry Code of Conduct program, the Council for Responsible Jewelry Practices, and the Framework for Responsible Mining.

Trend Three: Convergence

As brands and retailers increasingly sign-up to these initiatives, we can hope for a converging of some of the many standards and programs into a few. The ETI, once thought of as a UK-based initiative, now boasts an increasing number of non-UK members, including the U.S.-based Gap, Inc. Many members of the ETI have chosen to adopt the ETI Base Code as the code of conduct used in their supply chains, in order to use an existing multi-stakeholder code that promotes the use of a common industry code. In fact, the Body Shop forewent their previously developed code to adopt the ETI code and promote the concept of a universal code of conduct. The Gap recently announced their intention to do the same.

The article has more examples (mostly from a UK perspective), and I highly recommend the whole thing. And stay tuned for another entry later this week on SSC's approach to supply chain management, where we'll explore how small and medium-size organizations can implement sustainable supply chains.

VIEWS: Finding Work-Life Balance

I've been thinking a lot about work-life balance lately, both in a personal and professional sense. There's just something about the start of the New Year that makes me take stock. This year in particular, I'm inspired to do more at work (SSC's new "webinars" are my latest endeavor) AND take more time for myself (I've made a commitment with a good friend to visit a museum once a month). But I'm finding that there's rarely enough time to do both.

I'm not the only one struggling with work-life balance, but at least it looks like more workers are getting the chance to take an active role in the endeavor. According to a recent Inc article:

More professionals are finding a way to achieve work-life balance without giving up pay…Seeking a better work-life balance, more and more mid- and senior-level professional women are successfully negotiating flexible work schedules without cutting back income.

And it looks like women are particularly benefiting from flexible work arrangements:

Of more than 400 female workers polled nationwide, more than 90 percent said they have opted for flexible work arrangements at some point in their careers, including telecommuting, flexible hours, or simply limiting tasks that require working evenings or travel. A full 88 percent said flexible work arrangements allowed them to continue working full-time despite managing complex personal lives.

It's not just low-paying work, either. About 85 percent of the survey's respondents were responsible for at least half of their household incomes.

But it's not all sunbeams and roses for women seeking work-life balance. According to a recent Catalyst survey:

…while approximately one in four lawyers in law firms report having used a flexible work arrangement, the majority of those surveyed see it as a career limiting move. More than half of the female lawyers surveyed believed that their use of flexible work arrangements limited their professional development and made them appear less committed to their firms, versus 21 per cent of men who used the same arrangements.

What's the message? While we're increasingly seeing employers offer flexible working arrangements—and employees are jumping to take advantage of them, the long-term career impacts are still in doubt. But that doesn't mean it's not worth exploring now!

…more than 60 percent of the survey's respondents said they were more loyal to employers offering flexible schedules, telecommutes, and other options.

VIEWS: The Biggest Trends In Small Business

A colleague recently pointed me to an article in USA Today on the Top 10 Trends Shaping Small Business in 2007. Of particular interest to me were #4 and #1. Read on to find out why…

No. 4. Green revolution

We seem to have reached a critical tipping point, and there's no turning back: green is good. And as nearly every large company now has a sustainability or corporate social responsibility program in place, smaller companies are starting to see the value in environmental excellence too.

Whether it's GM unveiling an all-new electric concept car last week, or Whole Foods markets becoming nearly ubiquitous, or the rise of sustainable development, there is no doubt that there is an increased desire on the part of businesses and consumers alike to go green. For the small business owner, the green revolution presents opportunities: It can mean helping other companies be more environmentally-friendly, or catering to the desires of your customers to be more organic, or offering green products, and so on, but whatever the case, this may be a chance to do good and do well at the same time.

At Strategic Sustainability Consulting, we're delighted to be on the front crest of the green revolution for small business. Not only are we on the receiving end (just check out our own environmental initiatives), but we're also uniquely positioned to help other small companies green their own operations.

No. 1: Global warming may put you out of business

It's no surprise to us that global warming is happening…and it seems like most Americans now "get it". But that doesn't mean we're prepared.

According to a report from the British government written by former World Bank economist Sir Nicholas Stern ("The Stern Review on the Economics of Climate Change"), "Climate change could devastate the global economy on a scale of the two world wars and the depression of the 1930s" (CNN.com, October 30, 2006.)

Yup—it's true. The scary truth is that we are facing a catastrophe that's moving towards us like a monster in slow motion. We can see it coming, and yet are doing very little to stop it. At Strategic Sustainability Consulting, one of the most important services we provide is consultations on climate change management. So if your organization doesn't have a plan for how to deal with the realities of global warming, contact me at jennifer@sustainabilityconsulting.com for a free consultation.

VIEWS: What Makes a Good Sustainability Consultant?

As I look back over the last year and a half, I'm amazed at SSC's success. We've gone from a 1-person shop to a consultant network with more than 50 professionals representing all kinds of sustainability-related expertise. As SSC continues to grow, I am particularly proud of our ability to assemble teams of consultants specifically chosen for each project—a depth that few other consultancies can match.

As we continue to add highly-qualified consultants to our network, I spend a lot of time talking with potential consultants about the state of the "sustainable consulting industry" and how they can get more involved. Just this week, I got an email this week that asked a question I hear frequently:

What skills or training do you look for in consultants? Is a Ph.D. useful or would an MBA be a better degree? Are there particular certificates, like LEED, that are useful?

I can't tell you how often that question has been posed—and how unprepared I feel to answer it. Since I'm in a position to see a lot of the trends as they happen, I thought I'd give it a shot. But first want to clear up some misconceptions:

1. You can't just be a "sustainability consultant".

This is a common mistake, especially from recent graduates who approach me with "great interest in getting into sustainability" but nothing more specific. The more I learn about sustainability, the more I realize that EVERYTHING is about sustainability: energy, waste, diversity, culture, attitude, infrastructure, transportation, community, stakeholder engagement, life cycle, product design, process flows, climate change, transparency and disclosure, human rights, unionization, accountability, and the list goes on…

One person CANNOT do it all, and the first step is to figure out where in the *big* picture you fit. Don't forget to think about your industry expertise too—in fact, I suggest that new consultants make an issue/industry matrix to help flesh out exactly where they can play in this growing field.

2. Sustainability means environmental AND social issues.

This is another problem I see a lot—people tend to divide into one group or the other. If you find that all of your expertise (and interest) lines up in one field or the other, perhaps sustainability isn't the right terminology for you. There is no shame in being an "environmental management consultant" or "energy consultant" or "social justice consultant". So be honest—are you committed (and qualified!) to work on the bridge between environmental and social issues, or are you more comfortable focusing on one area or the other?

3. Education may get you in the door, but it's experience that counts.

I have a cutting-edge graduate degree in "Strategic Leadership Towards Sustainability" from the Blekinge Institute of Technology in Karlskrona, Sweden. That looks GREAT on my resume, and I can honestly say that I learned many valuable things about sustainability that have made me a better consultant. That degree has given me a level of credibility that I didn't previously have—but it would never have been enough on its own.

I rely on my practical background in corporate social responsibility, in socially responsible investing, in ISO 9000, in shareholder advocacy, and in organizational accountability systems to run my business. So when people ask me "should I go back to school" my immediate question is: what does the rest of your resume look like? If you have years of hands-on experience, then maybe a degree is all you need. But without a significant portfolio of projects to point to, an aspiring sustainability consultant is unlikely to find another degree worth the necessary time and effort (and money!).

And now, some advice:

Consulting is a complicated business—with lots of variations. You can work for one of the "big 4" accounting firms within their burgeoning sustainability divisions if you like the sort of high-budget, business suit atmosphere those places convey. You can pair up with an NGO, many of whom are now partnering up with companies to form strategic alliances around sustainability. Or you can find a boutique consulting firm that caters to your specific expertise.

I've found that the old adage is true: discover what you love, then find a way to get paid for it. When I started Strategic Sustainability Consulting, I wasn't sure there was a market for it—I just knew that it was something I was good at, something I could be passionate about, something that was needed. The rest took care of itself.

So to all the would-be sustainability consultants out there: worry less about a particular degree or specific certification. Figure out:

• What you're already qualified to do—sustainability touches so many things that often you don't need a radical change to get involved
• Where the market is—are there already businesses involved in this area of sustainability?
• What kind of work-life balance you want—how much money you expect to make, what sacrifices you're willing to make, etc.

Then—and ONLY then—are you ready to start thinking about additional schooling and training.

(But let me get off my high horse and be direct: I see green building and energy as the two fastest growing sustainability areas. So if it turns out that you're just plain excited about sustainability, look into LEED certification, renewable energy contracts, and energy efficiency auditing. Just a thought.)

VIEWS: CSR in China

This November I spent a week in Shanghai, giving a workshop to Fortune 500 companies on "EHS and Strategic Sustainability Planning". It was my first trip to China, and my first opportunity to speak in depth with senior EHS managers operating in Asia. What I experienced there reinforced what I'd read about corporate social responsibility in China.

1. Multinational corporations (MNCs) and local business are held to two different standards.

One of the most interesting take-aways from my trip to China was the consensus among Fortune 500 companies that they are held to a higher standard than their Chinese competitors—in fact, a MUCH higher standard. Time and time again I was given examples of how a multinational company would be required by the Chinese government to meet regulations more stringent than EU standards, while their local competitor over in the next town was allowed to completely ignore even the most basic environmental precautions.

Lesson: The social and environmental impacts of globalization will hit big companies first, and multinational companies will need to be prepared to go above and beyond local "best practices" when introducing new factories in China.

2. Corporate social responsibility is too new to have much traction.

My workshop was officially titled "EHS and Strategic Sustainability Planning: Creating Competitive Company Value as A Good Corporate Citizen" and included topics like:

§ Sustainability in a Chinese Context

§ Wal-Mart and Sustainability: Implications for China's Supply Chain

§ Communicating Sustainability Performance

The first day opened with a session on environment, health, and safety (EHS)—where I talked primarily about the importance of having the "three Ps": policy, programs, performance. The next session was called "Beyond EHS" and talked about the emerging CSR issues that companies will need to address in order to keep up with larger sustainability trends. This session included things like diversity, human rights, unionization, community relations, and stakeholder engagement.

During this session, I was met by a lot of blank stares, and even some giggles. Because as far as the EHS has come in China, issues like diversity and human rights still don't make sense there. It's more than a matter of cultural context; these operations simply do not see a business case for promoting "soft" CSR issues. Not yet, at least.

Lesson: MNCs need to pay more attention to "soft" CSR issues, and make sure that adequate resources are devoted to issues beyond environment, health, and safety. This is ESPECIALLY true for companies that have global standards for CSR—because it's only a matter of time until they get caught operating with different standards.

3. Culture shifts are the key obstacle to long-term sustainability.

The final lesson I took away from my trip is that—while there are many obstacles to implementing a broader sustainability agenda in Chinese operations—cultural context is the most challenging. For MNCs moving into China, it's not just a matter of setting up the same programs, standards, and goals as at the headquarters location. If the employees don't understand the logic behind sustainability requirements—if they don't feel engaged and empowered in the process of making the facility a more responsible business entity—then CSR simply doesn't work.

Lesson: While global CSR standards are great, companies need to be aware of what a huge impact culture plays on the ability of a facility to "buy-in" to sustainability. New operations, in particular, need to make sure that enough time and energy is spent educating employees about the "why" behind CSR programs and performance goals.

VIEWS: Sustainability Reporting and G3

Last week, Strategic Sustainability Consulting submitted feedback to the Global Reporting Initiative (GRI) concerning their new edition of sustainability reporting guidelines, G3. Our comment represents a coalition effort of business, academic, and NGO communities from eight different countries--all who believe that GRI can be improved further. Our main point:

Our main concern, however, is that the G3 Guidelines (like the 2002 Guidelines) do not provide an appropriate context for reporting on performance indicators—namely, a definition of sustainability that is both scientifically sound and directly measurable. While the G3 Guidelines provide an excellent structure for reporting on economic, environmental, and social issues, this lack of a rigorous definition of sustainability means that reporting organizations cannot truly be held accountable for their progress towards sustainable development. Indeed, without an explicit recognition of the constraints underlying sustainability, organizations may not even internally understand the requirements of a sustainable society.

You can read the whole document (2 pages) here.