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Sustainable

A Handbook for
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A Handbook for Sustainable Development
A Handbook for Sustainable Development

A companion to BS 8900, Guidance for managing


sustainable development

David Jackman
A Handbook for Sustainable Development

First published in the UK in 2008


by
BSI
389 Chiswick High Road
London W4 4AL
© British Standards Institution 2008

All rights reserved. Except as permitted under the Copyright, Designs and Patents
Act 1988, no part of this publication may be reproduced, stored in a retrieval
system or transmitted in any form or by any means – electronic, photocopying,
recording or otherwise – without prior permission in writing from the publisher.
Whilst every care has been taken in developing and compiling this publication,
BSI accepts no liability for any loss or damage caused, arising directly or
indirectly in connection with reliance on its contents except to the extent that
such liability may not be excluded in law.
The right of David Jackman to be identifed as the author of this Work has been
asserted by him in accordance with sections 77 and 78 of the Copyright, Designs
and Patents Act 1988.
Typeset in Berkeley and Humanist by Monolith – www.monolith.uk.com
Printed in Great Britain by MPG Books, Bodmin, Cornwall

British Library Cataloguing in Publication Data


A catalogue record for this book is available from the British Library

ISBN 978 0 580 60728 8


Contents

Foreword vii

1. Introduction 1

2. Business case and main themes 3

3. Where to start? Outcomes and principles 23

4. Identifying issues and stakeholder engagement 31

5. Embedding a culture of sustainability 58

6. Putting sustainable development into practice –


key management issues 63

7. Building trust and confdence 97

8. Ways forward 1 20

9. Conclusion 1 42
vii

Foreword

Sustainable development and standardization


The future for standards is changing. There will always be a need for precise

product speci fcations to assist international trade but standard setters


need to consider the pressing issues of the day and the wider function that

standardization can play.

We have been working on a new style of standard, so-called ‘soft

standards’, which aims to engage those who are not normally standards users,

particularly including small- and medium-sized enterprises and community

organizations. This breed of new standards offers a framework to stimulate

interest, develop commitment and educate the user.

The emphasis is on providing enough structure and ‘space’ to allow

organizations to learn for themselves and to embed new approaches or ways

of working. This is moving a long way from tick box prescription, towards

changing mindsets and, in itself, is more sustainable – getting into the DN A of

organizations and wider society.

One of the most signi fcant of the ‘big issues’ facing us today is the need
for co-operation and direction in facing the global implications of climate

change and diminishing resources. BS 8900, Guidance for managing sustainable


development provides a road map to help all organizations work towards

sustainable outcomes.

The new standard explores how principle-based standards can work,

starting by focusing on outcomes. This book provides a companion to the

f
standard, focusing on practical examples of how dif cult issues involving values,
A Handbook for Sustainable Development
viii

principles and ethics can be addressed and changes implemented in organizations


and businesses.
Standards of this type may also have an increasing role in bridging the gap
between statutes or regulations and informal industry codes. This has growing
importance, as over-regulation is recognized as counterproductive, so standards
have value in facilitating deregulation, buttressing voluntary good practice and
providing stakeholder reassurance.
Finally, ‘softer’ frameworks, encouraging greater engagement, may also
have a role in developing local communities and even in strengthening and
maturing our decision-making processes at all levels.

Professor David Jackman


The Ethics Foundation
Chair, Sustainable Development, British Standards Institution
Easedale, September 2007
1

Chapter 1 : Introduction
There can be few subj ects more important to all of us than sustainable

development. It is the focus of our individual, corporate and common futures.

Yet for many organizations, both public and private, this is a complex area,

f
which can be off-putting and dif cult to approach.

This Handbook is designed to make it easier for organizations of all

types and sizes to understand and begin to come to terms with the implications

of a sustainable future. It provides a route map to set out on a j ourney, or a

framework to rationalize existing work. Every effort has been made to avoid

confusing j argon and overly technical detail, although many will fnd that they
are led down avenues which require further material.

The Handbook is a companion to the British Standard, Guidance for


managing sustainable development (BS 8900) , published in 2006. The format

follows the structure of the British Standard, with case studies and examples

inserted to illustrate good practice.

BS 8900 is a guidance standard and cannot be used to obtain certifcation.


This is deliberate, to provide an overview which allows organizations to f nd

their way into sustainable development and to navigate successfully. Subsequent,

more speci fc standards, which can be used to obtain certifcation, are being
produced, which will include coverage of:

• sustainable events management;

• food and farming;

• procurement;

• measurement and reporting;

• sustainable communities.
A Handbook for Sustainable Development
2

This subject area is connected to social responsibility and international


standards writing is underway with the intention of forming a social
responsibility standard (ISO 26000). All of these subjects are co-ordinated in
the UK by the BSI Committee for sustainable development (SDS/1). For further
information on the committee’s work, please contact Monika Green, committee
manager at British Standards.
Copies of BS 8900:2006 are available from British Standards Institution at:
389 Chiswick High Road, London, W4 4AL, or at
http://www.bsi-global.com/en/My-BSI/My-Subscriptions/BSOL/Search/.

References
BS 8900:2006, Guidance for managing sustainable development, London: British
Standards Institution
ISO/WD 26000, Guidance on social responsibility , Geneva: International
Organization for Standardization
3

Chapter 2: Business case and main themes

What is sustainable development?


Sustainable development is a direction of travel. It summarizes in one phrase

an intention to progress in a way that can be continued, at least in theory,

inde fnitely. This implies that development, of whatever kind, does not limit

future choices or irretrievably damage possible future resources.

The de fnition that BS 8900 uses is derived from the Brundtland Report
(World Commission on Environment and Development, 1 987) but sees a

broader scope. It is:

an enduring, balanced approach to economic activity, environmental responsi-


bility and social progress.

(Source: BS 8900, 0. 1 )

This de fnition makes two fundamental points: frst, that sustainable


development necessarily considers social, economic and environmental aspects

together, and secondly, that options for the future should not be limited.

Sustainable development, however, has come to encompass a very broad and

complex tapestry of integrated factors, including the social, economic and environ-

mental, but also the political, ethical and technical. The important point is that it

is a holistic approach which, at its heart, seeks to be inclusive and draw together

a very wide range of differing factors, recognizing the voracity and signi fcance of
interactions in society, the economy and between man and his environment.

Sustainable development is essentially an approach to de fning outcomes:


where we want to be and what we want to achieve. It is a set of criteria or
A Handbook for Sustainable Development
4

value j udgements about what is important and what should be avoided. It is

essentially a compass for travel, rather than a fxed point to reach.


It is important to say what sustainable development is not. Sustainable

development is not a process or series of processes. Certainly, the outcome

or outcomes of sustainable development may require new processes, or

amendments to existing ones, but the mechanisms employed should not become

a substitute for discussing the obj ectives. Process is not a substitute for purpose.

Sustainable development has become attached, misleadingly, to speci fc


agendas – most notably environmental agendas – but it is important to be

clear that sustainable development is not synonymous with ‘being green’.

Environmental and social accounting and reporting mechanisms are examples of

processes that support sustainable development, and form part of a wider whole.

Is sustainable development insuffciently ambitious?


It could be argued that sustainable development is a somewhat limited obj ective.

Apparently aiming to keep going could be seen as unambitious, seemingly

neglecting or negating the human potential to innovate, adapt and overcome

limitations. Clearly, technical developments push back, what may seem to be at

one point in time, impassable boundaries. Sustainable development, if it is to be

a useful concept, has to allow fexibility for dynamic change and improvements
of this kind. It should be a guide to balancing risk management with seeking

opportunities or nurturing innovation. The word ‘development’ is instructive;

sustainable development is about progress not about preserving in aspic.

Sustainable development should not become an excuse for preserving the

status quo, or conserving indefensible positions on the basis of a fear of change.

Change and progress is inherent in the concept of sustainable development and

f
it often requires the making of dif cult choices.

Organizations need to set out their view of sustainable development.

The views of two large organizations, BT and Philips, are provided in

Examples 1 and 2.

Example 1 — BT
How can we contribute to sustainable economic growth?
For much of the last two decades our approach to sustainability has focused
on reducing the negative social and environmental impacts of our business.
We now want to adopt a more holistic approach and to extend our focus
Business case and main themes

from risks and impacts to look more closely at opportunities. We believe that
ICT technology has great potential to contribute towards sustainability – by
enabling economic growth that benef ts society within environmental limits.

CSR Leadership Panel


“If BT can sell ICT and carbon reduction to their clients this will be a
profound shift towards a more sustainable business model.

Elisabeth Laville, Founder & Director, Utopies”

To ensure we embrace these opportunities we have launched a sustainable


economic growth programme – a key strand of our CSR strategy. We
will focus on integrating sustainability into our business development
processes, creating new products and services with sustainability benef ts
and encouraging new business models. As one of the world’s largest
companies, ranking 1 62nd in Fortune’s Global 500 we believe we can make
an important contribution.

We have already started to identify new ways in which our technology and
operations can have broader bene f ts for BT and society. For example, we
are developing a Carbon Audit service to help customers understand the
carbon footprint of their ICT systems and use technology to reduce their
overall emissions.

Our sustainable economic growth programme in brief


1. Integrating sustainability into business development processes . We will take
account of sustainability factors in our product development processes.
2. Identifying products and services with sustainability bene f ts . For example,
ICT solutions that enable home-working or better management of
chronic disease.
3. Exploring obsolescence in the ICT industry. ICT has environmental
drawbacks as well as benef ts. For example, the relatively short life span
for much ICT equipment contributes to wasted resources.
4. Measuring our progress . We will establish indicators to drive progress.

Contributing to the economy


Our sustainable economic growth programme will build on strong
foundations. We make a signi f cant direct economic contribution by
employing 1 06,204 people and buying goods and services worth billions of
pounds a year.
A Handbook for Sustainable Development
6

As an ICT company we also have an indirect economic impact through our


technology. The products and services provided by BT are used by others to
raise their productivity and ability to compete.

COMMENT: Andy Green


CEO Group Strategy and Operations, BT
We are committed to sustainable development because it matters to
society and our customers. It ref ects the ethos of our company and is a
natural extension of our long history of engagement in environmental issues.
We’re convinced that economic growth is a good thing if it is achieved in a
sustainable way that helps people worldwide to raise their standard of living.

Our industry has great potential to stimulate economic growth in a way


that bene f ts society, reduces inequalities and prevents environmental
degradation. Travel substitution is one example. By facilitating remote
working, ICT can stimulate the growth of virtual global enterprises that bring
people into the workforce and contribute to sustainable local communities.
But this potential won’t be realised automatically – it requires creative
thinking.

We have had a positive response to this initiative internally – now we have


to channel this energy and embed it into our product development process.
This has to be part of our day-to-day business.

COMMENT: Elisabeth Laville


Founder & Director, Utopies
BT’s sustainable economic growth programme puts them among the leading
companies in this area. Up to now most companies have focused on risk
management and pollution prevention. Now the leaders are thinking about
how to make a positive contribution through their everyday business activities.

I’m interested in their idea of a carbon audit service. If BT can sell ICT and
carbon reduction to their clients this will be a profound shift towards a more
sustainable business model.

We shouldn’t assume that ICT solutions by themselves will always have a


benef cial environmental impact. Installing a video conference system won’t
necessarily reduce business travel. You have to communicate intensively
and create incentives for people to adopt sustainable solutions. I think BT
understands these challenges.
Business case and main themes

BT’s programme is very relevant but it is in its early stages. I would like
them to set targets and embed this work in their business. If they really
see opportunities in this area they must make it part of their core business
strategy and communicate it externally.

(Source: BT, 2 007)

Example 2 — Philips

How would you defne sustainability at Philips?


It’s no different than our company mission – to improve the quality of
people’s lives through the timely introduction of meaningful innovations.
Sustainability is an integral part of the way we do business. We are actually
in a unique position because sustainability has always been in our DNA. Our
company’s founders never lost sight of their employees or the communities
they came from. From the early days they provided pensions, sick pay
and medical care. They built housing for employees in Eindhoven, and
set up sporting and cultural activities. They also provided elementary and
secondary schools, and a foundation to f nance college scholarships for
employees’ children. I myself benef ted from a Philips scholarship during my
studies.

What does this mean today?


Our company has changed a lot over the years, but as for sustainability, we
are loyal to our roots. We still put people at the center of our activities.
That’s what our brand promise of “sense and simplicity” is all about –
making technology easier to experience and designed around people, while
still being advanced. We need new innovations to improve people’s lives in
advanced and new and emerging markets, including developing countries.
We want to be a company that simpli f es solutions for complex issues like
sustainable development.

(Source: Philips, 2 007)

The role of standards in sustainable development


Sustainable development requires the involvement and commitment of a very

wide range of groups, e. g. businesses (employers and employees) , community


A Handbook for Sustainable Development
8

groups, government, families, academics, non-governmental organizations


(NGOs), and investors and shareholders in companies. The list is long. What is
necessary for sustainable development to be successful is that these groups are
engaged as much as possible.
Obviously, there are many ways of engagement taking place, and similarly
numerous ways of encouraging and promoting engagement. A series of
standards is just one tool for facilitating engagement and helping development
move in a more co-ordinated direction.
Standards, such as BS 8900, provide a focus for many different interest
groups to come together and agree upon specifc ways forward. In this sense,
standards are a framework for sustainable development, providing a road map
and a degree of confdence in the overall direction taken.

Stakeholders
The standard adopts the perspective of an organization, whether it be a
commercial business, a non-pro ft organization or a community group,
becoming involved in, and making its contribution to, sustainable development.
This is a convenient position from which to consider all the aspects of
sustainable development and a reasonable unit for achieving change. Clearly,
however, it is not the only perspective or vehicle for change – as can be seen
from proposed work on sustainable communities. It is also possible to conceive
of change at the level of the household or individual, where some of the same
principles might apply. However, BS 8900 is primarily focused on organizations
and how they can contribute to and deliver effective development.
From this perspective there are a number of groups of people who
can and do infuence the actions of the organization and, similarly, there are
possibly different groups of people who are affected by the actions that the
organization takes. These groups who are the infuence or who are impacted by
an organization are generally termed ‘stakeholders’, in that they have a stake or
interest in how the company performs and behaves.

Identifying stakeholder groups


Clearly, some (like employees) have a large interest in how the company or
organization acts, but others who may, for instance, be at steps removed as part
of a long supply chain, may have both little infuence on the workings of an
organization and be only marginally affected by its decisions (assuming that they
have many other customers, which of course may not be the case).
Business case and main themes

Ultimately, everyone is a stakeholder of everyone else. Even in a supply


chain the number of parties involved can be enormous, if each component and
raw material is taken into account for a product, for example. The important
skill is identifying where the breakpoint exists between stakeholders with a
signifcant interest in a particular organization and those who are at the margin
and can safely be not regarded as stakeholders of that particular organization.

What makes BS 8900 so different?


In an area so integral to all that we do, sustainable development will always
be much more effective if it is something that we want to do rather than feel
required to attain. Therefore, at the heart of the approach set out in BS 8900,
there is the overriding imperative to win hearts and minds and build commitment
and competence, rather than focusing on setting a standard to achieve.
Clearly, one of the functions of standards is to set benchmarks which
provide assurance to others. BS 8900 is concerned with building a relationship
of trust and confdence between organizations and their stakeholders, which
provides a foundation for such assurance, rather than focusing on the standard
as a short cut to that verifcation.
The intention of the more specifc standards to follow within the BS 8900
series is that they will provide a more conventional accreditation in specifc
areas where a technical level has been reached. However, within each of these
standards the primary aim is to embed a sustainable mindset and commitment
within the organization.
If sustainable development can be seen as a mindset or a way of thinking,
then we need to consider ways of developing and encouraging such a way
of thinking. If the standard tells the user exactly what to do and is quite
prescriptive, the tendency of the user will be to do exactly as he or she is told.
Then the standard becomes a checklist which is ticked off without a lot of
thought or fnesse from the organization or individuals applying it. This has
signifcant downside. First, if individuals or organizations are accustomed to
simply using checklists, they may not fully understand why they are doing
something or how sustainable criteria could operate. Consequently, they may
well produce a sound solution by applying a standard mechanically, but if they
understood why and how it works, they might produce a solution which is even
more suited to their needs and situation.

Secondly, change means that criteria set at one point in time may no
longer be applicable as circumstances change. Therefore, a deeper understanding
A Handbook for Sustainable Development
10

of the standard’s concepts allows for ongoing evolution. BS 8900 strongly


encourages development and evolution as the horizon moves forward – as it
undoubtedly will in this rapidly developing area.
Thirdly, if organizations do not fully understand and internalize a
sustainable way of thinking, then they are less likely to be fully committed to
the concept and buy into its purpose and practice. Therefore, when greater
pressures arise, such as commercial pressures, it is more likely that the
sustainable elements will give way. For developments to be effective, a consistent
and co-ordinated approach is required, to achieve change over a broad front.
Fourthly, a large number of people need to be informed and involved
in sustainable activities if they are to be meaningful. It is more likely that
a joined-up approach will be achieved and consistently applied if all the
individuals concerned understand the purpose and direction of sustainable
development rather than them simply following a checklist of details that may
appear to be disconnected and, sometimes, irrelevant.
Finally, a culture of dependency can be built up (Jackman) 1 through
increasing prescription, which not only discourages fexible thinking and
initiative, but also reduces confdence in individuals and teams making their
own decisions in new and pressured situations. As this confdence becomes
further eroded, it is more diffcult to rebuild the key skills of judgement and
mature decision making. These skills are critical in the delivery of an effective
and sustainable approach to sustainable development. BS 8900 seeks to develop
and encourage this decision-making capability and confdence directly.
BS 8900 aims therefore to infuence the culture of an organization and
assist in developing a more mature approach generally, and, as part of that
maturity, a deeper and wider engagement in sustainable development.

Regulatory dividend
In fnancial services it has been important for regulators to try to bring about
certain changes in behaviour and practice. Initially, the focus was on writing
rules to cover every eventuality, inspecting frms and bringing in forceful actions
against frms that breached the rules. Over the past fve years, the Financial
Services Authority (FSA) has switched its emphasis to trying to mould corporate
and sector culture, emphasizing core outcomes and values. Figure 1 sets out
different kinds of frm behaviour and the way in which a changing culture not

1 Jackman D. Does regulation make it worse. Journal for Financial Regulation and
Compliance., Vol 12 Number 2, pp 106–110, June 2004.
Business case and main themes

11

only brings changes in performance, which can be as a result of internal changes


rather than of external intervention, but also a different relationship with, and
style of operation for, the regulator. This is the so-called regulatory dividend,
which allows frms demonstrating an appropriate culture and clearly treating
customers fairly to have a more mature relationship with the regulator, which
can then deal with the frm in a more arm’s length fashion. This is less costly
for the frm and, overall, the regulator is able to reduce the burden of rules and
enforcement, thus making regulation less costly and more sustainable. This
has contributed to London becoming a more attractive place to do fnancial
services business and may well have contributed to London outstripping New
York as the leading international fnancial centre in recent years. So there is a
real beneft, in commercial terms, to encouraging and developing a focus on
values that brings together the differing stakeholder requirements (in this case,
consumers and markets). This model might also be applicable to developing
a sustainable development-oriented culture and assisting frms in reducing
the need for regulation, and, where possible, helping to manage stakeholder
involvement and pressure.
Figure 1 offers a model for the development of values and culture, and the
nature of the relationships between frms, consumers and us. The model works
in terms of individual frms, or a sector, or the industry as a whole. It is also not
assumed that frms move in one direction consistently; they may slip back or
develop at differing rates at different times. However, the model gives a direction
and an ethical dimension for frms/sectors/the industry.

Sustainable development versus sustainability


Sustainable development is a broad statement of outcome, including the
sort of criteria that should be applied to selecting or maintaining new and
existing activities. Sustainability is the ability to develop sustainably or to act
sustainably. In relation to an organization, this ability therefore includes both
the organization’s competence in relation to sustainable development and its
commitment to a sustainable path.

Business case
It is not intended to set out sustainable development as an alternative route to
economic prosperity. The two are not reached exclusively; indeed, the idea is to
fnd a common path by which economic objectives can be achieved along with
broader environmental and social outcomes.
A Handbook for Sustainable Development
12

Values and culture of frms Regulatory relationship

M inimum standards Policing

• Unthinking, mechanical compliance • Monitoring boundaries


• Does as little as can get away with • Detecting and responding to crises
• Culture of dependency • Enforcement ‘lessons’
• Tries to abdicate decisions and • Basic training
responsibilities

Compliance culture Supervising/educating

• Reliant on guidance • Developing ethics and competence


• By the book • Looking for early warning signs
• Unaware of some risks • Early action to bounce f rms back on
• Bureaucratic track
• Themed/focused visits

Beyond compliance Educating/consulting

• Risk focused, self policing • Facilitating the development of


• ‘Buying in’ at senior level competence and culture
• Ethos integrated into most business • Values scorecard
processes • Lighter touch
• Ethos seen as assisting business

Values-led business M ature relationship/benchmarking

• Internalize ethos of core values • Reinforce good practice


• Spirit, not just letter • Lead by example
• Values focused, goes beyond rules, not • Re-allocate resources to problem
just compliance f rms
• Well developed individual responsibility • Sustainable regulation
and sense of involvement by (all) staff
• Focus on prevention
• Continued reassessment and
improvement of approach
• Awareness and discussion of ethical
considerations at senior and all levels
• Open relationships
• Strong learning culture

(Source: FSA , 2 002 )

Figure 1 — Framework for the development of values


Business case and main themes

13

The aim is win-win: fnd the convergence between objectives of the


traditional kind and broader sustainable development aims. The intention of
BS 8900 is to plot that very path that draws together prosperity and sustainability.
The standard starts with a business case which aims to show in general
terms that sustainable development is indeed business friendly. Beyond that, the
standard argues that sustainable development is benefcial to business aims and,
crucially, can enhance the bottom line.
It is recognized that boards or organizing committees of organizations
will need to understand and be reassured about (in fnancial terms) adopting
a widespread sustainable development approach. It is intended that BS 8900
will give some of the support necessary for building such a case. However, it is
necessary to investigate the fner details for each particular case. Cases and some
examples are provided within this Handbook to offer examples of successful
sustainable development.
The main business benefts are:
1. marketing edge: increasingly, consumers are interested in the way in
which products are manufactured, outsourced and distributed. There is
also a growing awareness of the contribution consumers can make by
buying sustainable products. Therefore, there is a marketing advantage
from promoting the sustainable nature of products, services and, indeed,
the organizations that provide them. The last point is important, because
consumers may be interested in a specifc product or may have an interest
in how the organization behaves and is run more generally. This places a
greater emphasis on the need to embed sustainability as a way of operating
and thinking throughout the culture of an organization. There is no reliable
data about the quantity of this ‘ethical pound’ (Jackman) 2 except in fnancial
services where the level of ethical investing, particularly in sustainable
funds, can be quantifed (see UK Social Investment Forum (UKSIF), 2005 3 );
2. decision-making cohesion: sustainable development provides a framework
for making decisions on a wide range of issues that take account of
differing stakeholder perspectives and maintain a coherent direction. This
is particularly important in an increasingly globalized economy where
supply chains and distribution may be international in nature and highly
complex. In this respect sustainable development can provide the backbone
to strategic planning and implementation;

2 Jackman D, Ethics Foundation 2007.


3 At December 31st 2005, the broad UK SRI market was over £560 billion pounds
( €781 billion euros). This fgure comes from the European SRI Study 2006 published
by Eurosif – http://www.eurosif.org/publications/sri_studies.
A Handbook for Sustainable Development
14

3. building trust and confdence: engaging stakeholders on subjects that have


direct relevance to them helps to build a foundation of trust and provides
a call to partnership activities. Great emphasis has been placed in recent
years on transparency and accountability. The approach adopted in BS 8900
is based not on the presumption of mistrust, but on the ambition of closer
dialogue and clear lines of responsibility;
4. motivation and empowerment: addressing the subject which may touch
employees, or potential recruits, in a way which fnancial and other
considerations may not, can, if carried out genuinely and suffciently,
contribute much to employee motivation, loyalty and retention. Also, and
this is increasingly of importance to large organizations, it may help in the
recruitment of new staff, who may increasingly be making career choices on
the basis of organizations’ values and ethics; 4
5. reducing the need for increased regulation: pre-emptive action (PMT)
is action by organizations to demonstrate their wider responsibility and
internal values. Coherence can forestall or obviate the need for regulation or
increased regulation. A more mature approach to establishing sustainability,
stakeholder engagement and commitment to sustainable development can
be of use to persuade regulators to adopt a more arm’s length approach (see
Figure 1).
Beyond these business reasons there is of course a set of more personal
motivations, which may be shared corporately, driven by a recognition of
individuals’ and corporations’ responsibility to their surroundings and those
around them. Increasingly, senior managers, and staff at all levels, are concerned
about doing the right thing, rather than simply doing the thing right. An
example of making a business case for sustainability is given in Example 3.

Example 3 — Making a business case for sustainability: BT


[Extract from] An interview with BT’s Chairman

The business case for sustainability

Jonathon Porritt, Founder Director of Forum for the Future and Chairman
of BT’s CSR Leadership Panel, spoke with Sir Christopher Bland for this
report. This is an edited extract from their conversation…

JP: If you look back over your time as Chairman, which of the many sustainable
development actions by BT are you particularly proud of?

4 Paraphrased from a speech given at a conference of the Association of Graduate


Recruiters in 2006.
Business case and main themes

15

SCB: There are two. We have topped the Dow Jones Sustainability Index
for six successive years among telecommunications companies. That is an
external measure of sustainability I am really proud of. The second thing is
that we negotiated what was then the world’s biggest green energy contract
in 2004 and we have just renewed that until 201 0. That was a pioneering act
at the time.

JP: Where do you think the sustainable development agenda is going? Some
business people see it as having been quite a steep curve and now plateauing;
others think that it is a permanently rising curve in terms of expectation and
legislation.

SCB: I think it is a permanently rising curve in expectation, not necessarily


legislation. Certainly, our customers and our staff expect more of the
company today than they did 20 years ago. Ten years ago it was not that
high up the agenda of most companies – now everyone knows what you are
talking about. Not only that, but I think the days of paying lip service to it
are over. Pressure to perform, both internally generated and external, will
increase.

JP: Do you think the BT Board sees this as a rising curve and is constantly
thinking about its own role in the company? Do you think it is always looking to
the next six months, the next year out?

SCB: Yes, I think it is. Sustainable development is not the only thing that the
Board thinks about and it is not on every single agenda, but it is high on its
list of priorities.

I think the other thing that is happening is that there is a growing business
imperative about sustainable development, for two reasons: customers
expect it and companies that do not pay attention to what their customers
expect will suffer. Secondly, there are business opportunities out there for
BT which mean that we can both do good and be prof table. I think our
work on teleconferencing is an example of where something that accelerates
sustainable development is also one of our fastest growing businesses. That
changes and accelerates the interest of even the most commercially minded
of boards.

[From the same report:]

Is climate change a business risk or opportunity?

Climate change is one of the biggest challenges of our age. We want to be


part of the solution to climate change and aim to be a recognised leader
A Handbook for Sustainable Development
16

in this f eld. Climate change is a risk to our business but also presents
numerous opportunities for us to strengthen our relationships with
customers, employees and regulators. Our response to this issue will help
determine our long-term business success.

Reducing our carbon footprint

Communications technology can reduce carbon dioxide emissions. For


example, by enabling easier remote working, phone and video conferencing
that reduce the need to travel. However, we believe the technology’s full
potential is not yet being realised. We need to do more to provide our
customers with new products and services that help them to reduce their
CO 2 emissions.

BT currently uses over 0.7% of the UK’s electricity consumption so


reducing our own footprint is also important. We realise that our electricity
consumption could increase as we upgrade our network and provide new
services such as data management for our large customers. But there is a lot
we can do to prevent this. This year we audited energy consumption at ten
of our data centres to assess how we can boost energy eff ciency. We have
also identi f ed unused and underused equipment and have decommissioned
or consolidated around 3,000 servers. We expect this to save 23GWh of
electricity per year resulting in signi f cant cost savings and reducing CO 2
emissions by 3,300 tonnes.

We launched a new climate change programme this year to further reduce


our own carbon footprint, and help employees, consumers and other
businesses to cut carbon emissions by making better use of ICT.

(Source: BT, 2 007)

Sustainable development and corporate


social responsibility
Is there a difference between sustainable development and corporate social

f
responsibility (CSR) ? It is dif cult sometimes to draw a distinction between the

two. However, sustainable development has come to mean a far broader cultural

change, going beyond assisting external enterprises in the community.

Essentially, CSR represents an earlier step on the same road, with

sustainable development representing the further development of the same basic

ideas. CSR emphasizes, as the term suggests, the responsibility of businesses

to their surrounding community and environment. It focuses on making some


Business case and main themes

17

contribution to broader growth, beyond the bottom line, and also includes

alleviating some of the detrimental impacts of businesses’ activities, where these

are particularly obvious.

CSR has become widespread and almost expected of employers of

signi fcant size. Many make detailed reports, or partnership statements. In the

case of smaller organizations – small- and medium-sized enterprises (SMEs)

– often considerable efforts are made, disproportionate to their size, because

they may feel more attached to their local community or are more aware of the

importance of reputation and responsible action.

In the main, CSR has been very helpful for many local communities, but

it is not a substitute for broader sustainable development and is best viewed as a

stepping-stone or contributory factor to this development.

The danger of tokenism


It does not take much to be cynical about organizations’ motivations for

adopting a sustainable approach. Most people accept that there may be a

marketing reason, but employees and consumers are remarkably sensitive to a

mismatch between stated intentions and behaviour in practice.

It is necessary to ‘walk the talk’ for consumers to recognize an

organization as being sustainable, or for employees to feel a convergence

between personal values and corporate values.

If an organization puts its head above the parapet and makes claims

about sustainable achievements and yet these are all either unsubstantiated or

insubstantial, then the progress towards, and buy in to, sustainable development

is likely to be seriously undermined. Sustainability cannot be achieved through

the regular PR channels; it has to be embedded throughout the organization. It

may indeed be better for an organization to underplay promises and claims – a

mission statement on the wall soon becomes empty words and empty words

make for very poor PR.

One particularly important danger of tokenism is the sense that can easily

develop in organizations that a few worthy exercises, or supporting a high-

pro fle campaign, for example, can salve the conscience of the organization,
and take away the responsibility and the need to do anything else. If you have a

belief that you have ticked the sustainable development box, and do not need to

worry about it any more, it is likely that you have not grasped its implications.

Making a token gesture is almost worse than doing nothing at all, as box ticking

may also contribute to the cynicism of observers or active stakeholders, thus

diminishing their potential efforts.


A Handbook for Sustainable Development
18

So BS 8900 is about a genuine attempt to address the issues of sustain-

ability, and eschews a super fcial or mechanical ‘green wash’. Unfortunately, CSR

has developed a reputation for smart marketing rather than securing long-term,

widespread change. Sustainable development is attempting to move beyond this

stage, and it is recognized that there is a fairly substantial need to convince those

who have already become overly sceptical (see Example 4) .

Example 4 — Going Beyond CSR: Becoming Values Led


There is scarcely a major business that doesn’t purport to be socially
responsible. CSR reports and vision statements abound, but how much
difference do they really make to corporate life? Not a lot according to
many consumers. Eight people in ten disagree that “Directors of large
companies can be trusted to tell the truth”, 1 and as trust goes hand in hand
with standards in both public and corporate life, they ask for government
regulation to protect them from being ripped off. Furthermore, over two
thirds of people are disengaged from their work, with half of these being so
disaffected that it has a signi f cant effect on their productivity. 2

Clearly CSR doesn’t always make fundamental changes to the way that a
company is viewed, so what makes a company trustworthy, and what makes
it a good place to work? In short, what makes a successful organisation?

A wider defnition of success

Before answering this question, we need to ask ourselves what is ‘success’?


Is it measured in pure f nancial terms – return on capital, shareholder
returns or pro f t before tax – or is f nancial success just part of being a
successful company? I suggest that f nancial success is just a pre-requisite
for true success, that is success in creating meaningful employment, in
providing useful services or products, in distributing wealth, alleviating
poverty and enhancing the quality of life for all. That economic growth does
not automatically lead to a corresponding increase in quality of life was
highlighted by a study carried out by the New Economics Foundation. This
concluded that whilst GDP had increased by over 80% over the last 30
years, an index of well-being has never re-gained the peak reached in 1 976. 3

Similarly, corporate success will include f nancial prof tability, but it doesn’t
end there. After all, it is pretty diff cult to motivate employees with the
principal aim of making money for someone else.
Business case and main themes

19

Shared purpose

An organisation that really engages people will have a clear sense of purpose,
which is understood and shared by its employees, customers and other
stakeholders. This purpose will be expressed in the organisation’s vision,
and unlike mission statements on the wall, will be at the very heart of the
organisation. Bolt on ethics just doesn’t work – values need to be seen to
be wholeheartedly embraced by the organisation. With such a degree of
mistrust in corporate activity, organisations that add ethics as an optional
extra will have any inconsistencies exposed. In contrast, organisations that
take the time to develop and share a corporate ethic can not but help be
distinguished by their distinctive approach.

Finding inspiration and vision

So how do organisations f nd ‘vision’? For many businesses it translates to


operating in an ‘ethical manner’ whilst retaining the primary objective of
making money for shareholders and the company. This is the essence of
most CSR policies. Yet, to really achieve something of lasting value, the
organisation needs to be inspired by a vision which transcends f nancial
pro f tability. This is probably best explored by way of example.

Sometimes, businesses are prodded in to action by negative campaigning.


B&Q is a case in point. The company was initially targeted by Friends of the
Earth for its sale of wood products which were unsustainably sourced. In
response, the company not only implemented a ground-breaking policy on
ensuring that all wood products came from sources which had been veri f ed
as being sustainable, but it took a radical look at its whole reason for being.
Kingf sher, the company which owns B&Q asked fundamental questions
of itself such as whether it actually added value to local communities,
encouraged unsustainable consumption, or in an unequal world, whether
their global business was making the situation better or worse. The company
continues to ask these questions and the answers inform everything the
company does and has led the company to address twelve key issues and to
examine the ‘story’ or life cycle of its products. In turn, this has resulted in a
shift in values of other companies that have felt compelled to respond, and it
has also given the company a raison d’etre beyond pro f t alone.

Other companies change through inspiration from the top. The following
chronicles the personal story of how Ray Anderson, Chairman of the largest
carpet company in the world, became one of the leading proponents
of achieving sustainability: “For the f rst twenty-one years of Interface’s
A Handbook for Sustainable Development
20

existence, I never gave one thought to what we took from or did to the
Earth, except to be sure we obeyed all laws and regulations. Frankly, I didn’t
have a vision, except “comply, comply, comply.” I had heard statesmen
advocate “sustainable development,” but I had no idea what it meant. Then,
through what seemed like pure serendipity, somebody sent me a book: Paul
Hawken’s The Ecology of Commerce. I read it, and it changed my life. It was
an epiphany. I wasn’t halfway through it before the vision I sought became
clear, along with a powerful sense of urgency to do something. In 1 994, I
offered the task force a vision: to make Interface the f rst name in industrial
ecology worldwide through actions, not words. I gave them a mission: to
convert Interface to a restorative enterprise; f rst by reaching sustainability
in our practices, and then becoming truly restorative – a company returning
more than we take – by helping others reach sustainability. At Interface, we
seek to become the f rst sustainable corporation in the world, and, following
that, the f rst restorative company.”

Creating space for vision

If that’s not inspiration, I don’t know what is, but most of us get swept along,
doing what we do without making the time to assess whether we’re going
in the right direction. If we’re not going the right way it doesn’t matter
how we get there. Creating the space to shape and share the vision of the
organisation is vital to ensure that the organisation knows where it is going,
how it is going to get there and that this vision is understood and embraced
throughout the organisation.

Team values are much talked about, but just how strong are the values
which bind employees in an organisation? Are people really the f rm’s
biggest asset or does the company actually put shareholders f rst? Having a
clear vision which is shared throughout the company is key to its successful
implementation. Employees then move from being paid workers to being
evangelists for the company. Similarly, customers and the wider public can
also become company evangelists, such is the power of a company which is
led by its values.

Naturally this leads to increasing pro f ts, but pro f t instead of being the
sole driving force, becomes part of a much wider vision. In the words of
Ray Anderson, “We’ll be doing well by doing good. That’s the vision. Is it a
dream? Certainly, but it is a dream we share with our 7,500 associates, our
vendors, and our customers. Everyone will have to dream this dream to
make it a reality, but until then, we are committed to leading the way.”
Business case and main themes
21

[References]
1. Mori survey for the Financial Times, June 2003
2. Development Dimensions International, Spring 2004 research report
3. New Economics Foundation – ‘Chasing Progress’, March 2004

(Source: Fleetwood J, Ethics Foundation, 2 005)

A journey not a destination


Many standards are designed to secure a baseline of (often minimum)

performance. This makes sense for consumer protection and to ensure that

designed parts actually ft together. However, sustainable development is a

complex cultural change, perceived as an ongoing process.

Therefore BS 8900 sets out a j ourney towards sustainable development

rather than providing a destination. There cannot be a fxed point at which an


organization becomes 1 00% sustainable. Most organizations will be successful in

some areas and less so in others. Equally, they will progress at times very rapidly,

and at others, more slowly. The standard needs to allow for this ongoing j ourney,

which will differ for every organization.

So, rather than fx a line in the sand, BS 8900 sets out a path and indicates
various stages along the path. It is the commitment and engagement of the

organization that matters, not that it has reached a particular point. The more

speci fc standards that follow will need to be more concrete about the point at
which accreditation can be given. This will require the later standards in the

fc requirements, to allow certifers to determine


BS 8900 series to offer speci

whether an organization is ‘suff ciently sustainable’ to be certi f ed. However,

even here it must be recognized that sustainable development is an ongoing

process, by its very nature.

As technology progresses and we become more competent in sustainable

development, the horizon of what is possible and what is practical will shift,

and so what currently looks like good practice may seem to be somewhat

rudimentary in years to come. It is important that any standard allows for this

continual shift, in its requirements.

BS 8900 also encourages organizations to take a lead, to be adventurous

and to push what may now seem to be boundaries. Pioneering is almost a

requirement at the current state of maturity of this area. It is also implied within

the activity of vigorous and useful stakeholder engagement. With experience

and learning it should be almost inevitable that progress can be achieved and
A Handbook for Sustainable Development
22

that barriers can be broken. This is an inspiring and challenging prospect for all
organizations, commercial and social enterprises.

The structure of BS 8900


The standard is deliberately short and has fve sections, of which three form the
focus of the approach:
1. Scope
2. Terms and defnitions
3. Principles of sustainable development
4. Putting sustainable development into practice
5. Sustainable development maturity matrix
The scope of the standard is deliberately broad to encompass organizations
of any size, be they commercial or non-pro ft. The standard is also not sector
specifc or focused towards any particular type of organization. It can also be
used by an organization’s stakeholders.

BS 8900 contains a ‘Terms and defnitions’ clause, but it has been drafted
to avoid the use of jargon. This is because we relied on the terms we do use
being explained in the text or having their normal usage.
In consequence, the best place to begin is by starting to defne the sorts of
sustainable outcomes the organization wishes to achieve. This is a very diffcult
subject and an organization will fnd that it is necessary to keep visiting the
outcomes as an iterative process.

References
BT (2007) Sustainability – Business Overview , part of Changing world: Sustained
values 2007, BT’s sustainability opportunities, challenges and performance.
Available at http://www.bt.com/betterworld
The Financial Services Authority (FSA) (2002) Discussion Paper 18, Financial
Services Authority, An Ethical Framework for Financial Services , London: FSA
Fleetwood, J, Ethics Foundation (2005) Beyond CSR – Becoming Values Led, June
2005, Windermere: Ethics Foundation
Hawken, P (1994) The Ecology of Commerce, New York: HarperBusiness
Philips (2007) Improving Lives, Delivering Value, Sustainability Report 2006.
Available at http://www.philips.com/about/sustainability/ourcommitment/
index.page
World Commission on Environment and Development (1987) Our Common
Future (‘Brundtland Report’), Oxford: Oxford Paperbacks
23

Chapter 3: Where to start? Outcomes


and principles

Outcomes and principles – dealing with complexity


The essence of de fning outcomes is to try to put into words the situation,
products, service, environment or global picture you are trying to work towards.

This is potentially a complex process. While it is necessary to be as concrete as

possible in de fning outcomes, in the early stages of sustainable development it


is likely that an organization will have a fairly loose and incoherent review of

what it is trying to achieve.

As a result, BS 8900 rapidly moves users on to establishing principles of

sustainability. These are more general statements, rules of thumb, for example,

which have two advantages:

1. they help you to de fne outcomes in higher-level terms that are more fexible
and more widely understandable;

2. they help you to apply your strategy of sustainable development in practice

by providing reference points for making decisions both at a corporate and

at an individual level.

These principles may often start from widely held ethical principles, such as the

desire to be honest, fair and responsible. However, in the focus on sustainable

development, these are not enough. So the next stage is to de fne these
principles in a way that starts to approach and grapple with what sustainability

means in your context.

BS 8900 offers an example of how this ‘working towards’ principle might

be facilitated, as shown in Table 1 .


A Handbook for Sustainable Development
24

Table 1 — Sample principles


Principles Questions

Inclusivity • How do you identify those who could affect or be affected (stakeholders,
see 4.2.1 ) by your decisions and actions?
• How do stakeholders contribute their views, and on a continuing basis?
• How do you help stakeholders understand the reasons for the
organization’s decisions and the implications of its actions?
• How can you be sure that no groups or individuals are disadvantaged or
are “kept in the dark”?
• Are there interests beyond your immediate stakeholders which should be
considered?

Integrity • How do you try to deal with others with integrity?


• How is diversity encouraged and developed?
• How do you ensure bribery, abuse, oppression, and corruption are
avoided?
• How do you demonstrate that your decisions and actions are unbiased,
and comply with relevant rights, legal obligations and regulations?

Stewardship • How does this action affect quality of life?


• Will organizational decisions lead to irreversible environmental (including
biodiversity) or societal change or loss? If so, have alternatives been
evaluated?
• In any activity will the use of resources and its consequent impact be
considered and monitored?
• How are sustainable development management skills developed, shared,
applied and recognized?

Transparency • How do you make certain that relevant and reliable information is
available in an accessible, low-cost and comparable way?
• How are reasonable views or requests for further information considered
and responded to?
• How are signi f cant interests, in f uences or bene f ciaries recorded,
communicated and managed?
• How are decision makers identi f ed and the reasons for decisions
recorded and communicated, and to whom?

(Source: BS 8900:2 006)

On the left of the table are broad ethical principles and on the right are questions

that start to work out how these principles might translate into a more sustainable

format and focus.

The process of challenge and debate will be necessary to a re fned assess-


ment of workable principles – the more contributions to this discussion, the

more likely it is for a workable result to be achieved. Below are some examples
Where to start? Outcomes and principles

25

of how this might be achieved. From these principles an organization may then
be better placed to defne specifc outcomes.

National starting point


It may be useful to start from the UK Government’s perspective on sustainable
development principles, as set out in Figure 2. Examples of how organizations
set out their sustainable development principles follow, with that of Co-operative
Financial Services provided frst, in Example 5.

Living Within Ensuring a Strong,


Environmental Limits Healthy and Just
Respecting the limits of Society
the planet’s environment, Meeting the diverse
resources and biodiversity needs of all people in
– to improve our existing and future
environment and ensure communities, promoting
that the natural resources personal well-being, social
needed for life are cohesion and inclusion,
unimpaired and remain so and creating equal
for future generations. opportunity for all.

Achieving a Using Sound Promoting Good


Sustainable Science Responsibly Governance
Economy Ensuring policy is Actively promoting
Building a strong, developed and effective, participative
stable and sustainable implemented on the systems of
economy which basis of strong governance in all
provides prosperity scientific evidence, levels of society –
and opportunities for whilst taking into engaging people’s
all, and in which account scientific creativity, energy and
environmental and uncertainty (through diversity.
social costs fall on the Precautionary
those who impose Principle) as well as
them (Polluter Pays), public attitudes and
and efficient resource values.
use is incentivised.

1
(Source: UK Government sustainable development website)

Figure 2 — Shared UK principles of sustainable development

1 See http://www.sustainable-development.gov.uk/what/principles.htm.
A Handbook for Sustainable Development
26

Example 5 — Co-operative Financial


Services Sustainability Report 2005
Our purpose

To be a growing, pioneering f nancial services business delivering bene f ts


to customers, members and communities through commitment to value,
fairness and social responsibility.

Our vision

To be the UK’s most admired f nancial services business.

measured by

• Pro f t generation to create a sustainable business


• Market leading colleague satisfaction
• Market leading customer satisfaction
• Market leading social responsibility approach
• Membership growth.

Our values

As a Co-operative business, we believe in:


social responsibility

We are committed to leading the way on ethical, environmental and


community issues.
openness and honesty

We work hard to earn credibility and trust from our customers and each
other.
being successful

We work together to make sure that CFS is admired, pro f table and
sustainable.
being customer focused

We always aim to satisfy our customers and exceed their expectations


where we can.
making work fun

We are proud of CFS and know we can contribute to making it a great place
to work.

(Source: Co- operative Financial Services, 2 006)


Where to start? Outcomes and principles

27

Other examples of organizations’ principles


These principles and outcomes may be expressed in policy or in high-level
mission statements. For example, BP has been able to develop a high-level
mission statement for its environmental approach, 2 which is shown in
Example 6.

Example 6 — BP’s environmental mission statement

At the core of BP is an unshakable commitment to human progress. Our


products and services contribute to a better quality of life; they provide the
freedom to move and to heat. We believe this freedom is inseparable from
the responsibility to produce and consume energy in ways that respect both
human rights and natural environments.

Environment

Our goal is no damage to the environment; our challenge is to achieve this


while continuing to deliver energy products that support growth and social
development.

We work hard to minimise the environmental impact of our operations, by


improving eff ciency and investing in innovative technology.

For BP Fuel Cards the major environmental threats are spills during
the f lling process and on the road. Oil and fuel spills can damage the
environment, local communities and our business, as well as our customers’
business. In recent years we’ve made progress in tackling the risk of spills
and in dealing with those rare occasions when spills have occurred. There
will always be some risk that our products may leak or spill, but we believe
we can minimise this by taking action to protect our road tankers and
storage facilities, prepare well to deal with spills if they happen and learn
from past experience to improve our performance in the future. We take
a ‘prevention is best’ approach, but we also carry out regular oil and fuel
spills exercises to make sure we’re well prepared to deal with a number of
different spills scenarios.

We also work continuously on developing new products and services


that help f eet businesses reduce the impact of their operations on the
environment, and at the same time increase their operational eff ciency
and effectiveness.

2 See http://www.bp.com/genericsection.do?categoryId=4502958&contentId=50474.
A Handbook for Sustainable Development
28

For BP, this has then led to a specifc outcome expressed in concrete terms,
as follows.
The launch of targetneutral in the UK is another example of BP’s long-term
strategy of f nding new and better ways to minimise the impact of road transport
fuels on the environment.

Targetneutral is a non-pro f t making initiative that gives UK drivers a


simple, practical way to make their own, personal contribution to reducing,
replacing and neutralising‚ the harmful CO 2 emissions their driving produces.

By logging on to www.targetneutral.com, drivers can calculate how much


CO 2 their car emits, f nd out how to reduce that f gure and also learn
more about global projects to minimise CO 2. It is easy to participate, and
involves a cash contribution to the programme, usually around £20 per year,
depending on your vehicle, gas mileage and fuel consumption.

BP will also make a cash contribution, for every litre of BP fuel purchased
(excluding fuel card purchases), by targetneutral members using their
Nectar cards. And through the scheme, all of BP’s UK fuel tankers will now
be CO 2 neutral.

All the money raised, barring VAT and card/welcome costs, goes towards
positive environmental projects that offset the harm CO 2 emissions
produce, like three biomass energy plants, a wind farm in India and
livestock operations in Mexico. The scheme is monitored and guided by an
independent Advisory and Assurance Panel chaired by Sir Jonathon Porritt.
Targetneutral gives drivers an easy, affordable way to play their part in
balancing the equation.

Example 7, an extract from the Quarry Products Association’s Sustainable


Development Report March 2006 (Quarry Products Association, 2006), shows
how core values can be translated directly into outcomes and also set a direction
for future aspirations.

Example 7 — Core values to outcomes and aspirations


Resource conservation

Core value
We recognise our responsibility to make the most eff cient use of
all resources.
Where to start? Outcomes and principles

29

Performance indicators
• Tonnage of aggregates produced and landed: 281 million tonnes GB
• Volume from land sources: 201 million tonnes of primary aggregates GB
• Volume from marine sources: 1 3 million tonnes GB
• Proportion from recycled & secondary sources: 24% in 2004
• Per capita production in GB: 4.8 tonnes (EU: 6.9 tonnes)
• Water use metered/charged consumption per tonne of total production:
0.036 cubic metres
• Energy use, CO 2 kg per tonne of total production: 9.98kg
• Aggregates sector share of UK carbon emissions: 0.6%

Current position
QPA members have a responsibility to maximise resource eff ciency. This
means that we need to get the most out of each tonne of mineral extracted
whilst using the fewest possible resources in doing so. We have seen the use
of secondary and recycled aggregates increase substantially in recent years,
demonstrating the broad resource base of the industry and its ambition to
divert previously used materials from disposal and back into use.

As indicated in the appendices to this report, the production of primary


aggregates has “de-coupled” from construction output and economic
growth, although there remains a relationship between these indicators. The
use of total aggregates in Britain (4.8 tonnes pa per capita) is signi f cantly
lower than aggregates use in Europe (6.9 tonnes pa per capita in the EU),
demonstrating the relatively high resource eff ciency in the sector in Britain
(the production basis of the GB aggregates statistics is a good proxy for GB
consumption of aggregates.) In addition, the use of recycled and secondary
materials in aggregates markets in Great Britain has increased signi f cantly
in recent years. We estimate the use of recycled and secondary materials in
aggregates markets in Britain at 67 million tonnes in 2004, comprising 24 per
cent of the aggregates market. This GB market share has more than doubled
in the last 1 5 years, and the volume of recycled and secondary materials has
risen consistently since the mid-1 990s.

We also report here, for the f rst time, our energy and water data. It is
clearly too early to establish a trend and we also need to improve the
coverage of the data and monitor the quality of the data. In this f rst report,
our information on energy use and carbon emissions is limited to the on-site
use of energy excluding that used in the delivery of our products. Much
more work is required in the area of measuring and reporting water use as
we are active in many elements of the hydrological cycle and the interactions
A Handbook for Sustainable Development
30

are complicated. We report the consumption of metered or paid-for water,


but not the total volume of water abstracted during quarry de-watering, nor
the re-use of water used in processing.

In terms of energy use, we have identi f ed the use of electricity, natural gas,
gas oil, diesel, heavy fuel oil and recovered fuel oil and converted these
volumes to an overall kgs of CO 2 per tonne of total QPA production.

The f gure of 9.98kg of CO 2 includes the production of aggregates and


value-added products such as asphalt and ready-mixed concrete, but does
not include the use of energy in delivering our products to the market.

Aspirations

We aspire to ensure that all minerals are used appropriately and that we
maximise the use of previously used materials. We would like to reduce our
environmental footprint per tonne of material sold.

(Source: Quarry Products Association, 2 006)

Conclusion
BS 8900 suggests using different questions and approaches to fnd principles –
one might call them criteria – to help:
• defne sustainable outcomes; and
• apply an approach to sustainable development consistently across a wide
range of situations, sectors and possibly internationally.
In other words, principles to assist you to decide whether an outcome, a
decision, a course of action or an impact tends towards being sustainable or
not. This is particularly important in embedding sustainable development in
larger organizations.

References
Co-operative Financial Services (CFS) (2006) Co-operative Financial Services
Sustainability Report 2005, Manchester: CFS. Available at http://www.cfs.
co.uk/sustainability2005
Quarry Products Association (QPA) (2006) A Sustainable Development Report
from the Aggregates and Quarry Products Industry (‘Sustainable Development
Report March 2006’) , London: QPA. Available at http://www.qpa.org/sus_
report01.htm
31

Chapter 4: Identifying issues and


stakeholder engagement
f
Of course, it is very dif cult to de fne sustainable outcomes and principles in
isolation. As any organization has impacts of varying sizes on those who work

in the organization, around it and at arm’s length, it cannot take a view of its

sustainable nature without involving the perspectives of all stakeholder groups.

It is a common theme throughout BS 8900 that the closer the engagement

of all stakeholder groups, the healthier and more robust a path to sustainability

is likely to be.

Critical elements in developing any sustainable development model,

therefore, are:

• identifying signi fcant stakeholders;


• effectively engaging with stakeholders on an ongoing basis;

• identifying signi fcant issues with stakeholders.

Key issues
Core to the philosophy of effective stakeholder engagement is the need for

broad and representative engagement to ensure that needs are accurately

identi fed, actions explained and implications fully assessed. Again, BS 8900

avoids a formulaic approach and critically aims to build self-con fdence and
capability, driven by sound interests. This need, however, for effective and broad

engagement continues and is not simply an upfront or one-off activity.

In identifying who might be signi fcant stakeholders and who are not, it
is important to calculate the degree of dependency and in fuence, either way,
A Handbook for Sustainable Development
32

between the stakeholder and the organization. This may be a calculation not

only of the likelihood of one in fuencing the other, but also the degree of impact
one may have on the other. In risk management terms, this may be calculated in

terms of possibility ‘x’ impact.

It is important that engagement continues throughout the process and is

not a one-off effort at the beginning. This is part of the process of building and

maintaining con fdence (see Chapter 7) .


There are a number of models for structuring your stakeholder

engagement available on the market.

To be genuine and transparent, it is necessary to develop a relationship

with your stakeholders which re fects your willingness to:


• listen and take account of the views expressed;

• explain why some input is acted upon and other input is not;

• educate stakeholders about your plans, opportunities and limitations;

• maintain an ongoing relationship.

This is potentially expensive and time-consuming, but is the foundation for

effective sustainable development strategy and implementation. There is no easy

answer; the most useful focus might be the values you espouse as an organization

and your effectiveness in communicating and facilitating discussion. This may be

a new set of skills for some management teams and may require speci fc training
and development.

fecting on the previous section about the danger of tokenism, again,


Re

more damage can be done by apparently superf cial engagement, resulting in

greater cynicism and less potential engagement in the future.

The frst stage of engagement is to focus on identifying key issues, before


moving on to possible solutions and ways forward. It may not be immediately

apparent what the issues might be, particularly as each stakeholder group will

have a different perspective and set of priorities.

Many organizations identify their stakeholders by category, e. g. staff,

N GOs and shareholders, but this may not be realistic as many individuals either

may not ft into any category or may overlap into a number of different groups.
In addition, if stakeholder input is conf ned within set groups it may result in

polarized views becoming entrenched. At some point stakeholders need to see

the perspective of others and assist in coming to a consensus, or at least agree

on a best way forward. Consequently, BS 8900 suggests that trying to bring

stakeholder views together at the earliest possible stage is advantageous.


Identifying issues and stakeholder engagement

33

This may be best achieved through cross-stakeholder group discussions

or through specifc stakeholder education. It may be more effective, once


stakeholders have been identifed within criteria and groups, to then de-emphasize

such categorization in seeking views, using it simply as a check in the background

to ensure balanced and fair representation.

One important element of the standard is that it seeks to promote

sustainable development thinking throughout an organization and, rather than

using a great deal of detail, it offers a series of questions and criteria to help

you, as a user, to work out your own sustainable development path and actions.

Therefore, throughout this Handbook there are sets of questions to help you

move forward in each of the key areas.

You may wish to consider the following questions about your stakeholder engagement

• How do you ensure that relevant information is accurate, honest and easily accessible to
stakeholders?
• Is information offered in a low-cost, understandable and comparable way?
• Does the information you provide show bene f ts and costs in an unbiased and direct way?
• Do you ensure the consistent use of clear language: no jargon and no small print?
• How are you sensitive to the values, needs and interests of stakeholders?
• You always go out of your way to involve all relevant stakeholders – what does ‘out of your
way’ mean in practice?
• Do you look for collaboration and consensus rather than f nding reasons to ignore or excuses
to exclude?
• Do you explain your reasons for your response/actions or lack of action?
• Is your engagement transparent and a matter of public record?

Identifying key issues


Once you have identi fed your key stakeholders, it is then necessary to work
with them to clarify and re f ne your principles and outcomes and, within that

process, to identify the key issues for the stakeholders in question.

It is likely that different stakeholder groups will have different key issues

they wish to emphasize.

Some of these types of questions are provided in Example 8.


A Handbook for Sustainable Development
34

Example 8 — Questions stakeholders might ask


• Employees
What steps have you taken to be an employer of choice? How do you
develop your employees in terms of training? Do you exercise positive
discrimination in your employment policies, and how do you implement
an equal opportunities policy? What do you reward? Do employees
feel valued and how do you strive to achieve this? How do you involve
employees? In what ways are your terms of employment better than the
norm? Why would anyone want to work for you?

• Customers
Do your customers get the service that you have led them to expect?
Do you seek to exceed their expectations? How do you educate
customers about your values? Do you make the costs and conditions
of your services/products clear? How do you demonstrate that you are
worthy of your customers’ trust?

• Suppliers
Do you treat suppliers with respect and as an equal partner? Do you pay
suppliers on time? How important are environmental or social welfare
issues in your purchasing decisions? Do you seek to educate suppliers
about your values?

• Environment
Do you have an environmental management plan and how is this
implemented? Have you measured your environmental footprint? What
are your key environmental impacts and how have you addressed them?

• Investors
Do you provide your investors with accurate, timely and representative
information at all times? Do you pay your investors a fair return? Are all
investors treated equally? Are investors paid on time?

(Source: Ethics Foundation, 2 007)

Issues will be different for different sectors; as shown in Example 9.


Identifying issues and stakeholder engagement

35

Example 9 — Key issues

1 . Manufacturing company
i. Energy
What efforts have you made to reduce your use of non-renewable
energy in the manufacturing process, and have you sought to source
renewable energy? Have you measured your carbon footprint?

ii. Supply chain


How do you ensure that your suppliers act sustainably? (That
is, ensure fair working conditions and pay, and manage their
environmental impact responsibly.)

iii. Transport
How have you minimized the transport of goods and the carbon
footprint of that transport?

iv. Resources
How have you minimized your use of material resources and what
steps have you taken to reuse and recycle products?

v. Product life and reliability


What systems do you have in place to ensure that products are
long-lasting and reliable?

vi. Product use


How do your products benef t people? Can they be used in a
harmful way and, if so, how do you deal with this?

2. Retail company
i. Supply chain
How do you ensure that your suppliers act ethically? (That is, ensure
fair working conditions and pay, and manage their environmental
impact responsibly.) How do you work with them to improve
standards?

ii. Transport
How have you minimized the transport of goods and the carbon
footprint of that transport?

iii. Suppliers
Do you pay your suppliers a fair price for their goods? Do you pay
them on time? In what ways do you help suppliers? Do you share
risks with suppliers or do they take all of the risk? Do your contracts
with suppliers ref ect their commitment as well as yours?
A Handbook for Sustainable Development
36

iv. Product sustainability


Do you assess the environmental footprint of the products that you
sell, and how do you build environmental sustainability and product
durability in to product selection? Do you seek to educate your
customers about the environmental impact of your products?

v. Terms of sale
Do you accept responsibility for the goods that you sell and is
this ref ected in your returns policy? How fair are your servicing/
insurance agreements?

vi. Sales
How are staff remunerated and incentivized? How are they trained
to sell things that customers need rather than what will be most
benef cial for them to sell?

vii. Product purpose


Are your products environmentally or socially harmful or are they
benef cial? If they can be used in a harmful way, how do you mitigate
that possibility?

The Co-operative movement has developed a strong approach to engaging


stakeholders and defning their key issues, stakeholder group by stakeholder
group. Case study 1 is drawn from the 2005 sustainability report of the
Co-operative Financial Services group.

Case study 1 — Co-op Financial Services


Partners: developing relationships

CFS has identi f ed six groups, or Partners, upon whom its continued
success is, to varying degrees, dependent. Through ongoing dialogue with
Partners, CFS seeks to identify and con f rm their priorities, and put in place
measures to try and improve its performance in the areas that matter most
to them. This section provides a summary that identi f es who CFS’ Partners
are, what their stated priorities are in their relationship with CFS and
how performance is measured in these priority areas. The summary also
signposts areas of the Report where information of primary relevance to
each Partner group can be found.

Unlike some organisations, CFS does not de f ne ‘The Environment’ as a


separate Partner. The relationship between business and the ‘Natural World’
is essentially non-negotiable (in contrast to the relationship with suppliers,
Identifying issues and stakeholder engagement

37

staff, etc.). The activities of CFS and its Partners are ultimately governed by
Nature’s limited capacity to generate resources and assimilate waste. For
this reason, CFS assesses the degree to which value is delivered to each
Partner in an ecologically sustainable (and socially responsible) manner.

[Groups and their issues]

Shareholders
Who ? Co-operative Financial Services (CFS) is an Industrial and Provident
Society and the holding company for CIS (Co-operative Insurance Society)
and The Co-operative Bank. Although the Bank has approximately 2,500
preference shareholders who receive a half-yearly f xed dividend, CFS’ sole
equity shareholder is the Co-operative Group (www.co-op.co.uk). The
Co-operative Group is an Industrial and Provident Society, which is owned
and democratically controlled by its members (www.co-operative.co.uk/
membership). The Group is the largest consumer co-operative in the UK,
with sales of £7.4 billion in 2005. The Group employs over 68,000 people
and trades with millions of customers across the UK every day through
shops, travel agents, banking, insurance, pharmacies and funeral homes…

What ? Issues of co-operation, ethics and sustainability are of real concern to


the Co-operative Group, as detailed in its Corporate Social Responsibility
Report 2005 (www.co-op.co.uk). The Co-operative Group’s vision is to
be the world’s most successful consumer co-operative business. It has the
following aims:

• to strive for world class levels of business performance;


• to be open, responsible and rewarding, putting co-operative values and
principles into everyday practice;
• to enhance the lives of its people, members, customers and the
communities where it trades; and
• to work for the long-term success of the co-operative sector…

Customers
Who ? CIS and the Bank have approximately 6.5 million customers. At
the end of 2005, CIS had approximately 4.4 million customers (2004: 4.8
million) and the Bank had approximately 2.1 million personal and corporate
customers (2004: 2.3 million). At the end of 2005, CIS provided 6.6 million
active policies (2004: 7.3 million) whilst account numbers at the Bank
increased to 3.3 million personal (2004: 3.1 million) and 1 02,000 corporate
and business (2004: 95,000). …
A Handbook for Sustainable Development
38

What ? Focus groups undertaken with CIS customers found that issues of
‘relationship’ are of primary importance (Source: Nunwood Consulting
2004). 2005 research indicates that the delivery of this priority has remained
important, despite a background of signi f cant change brought about by the
CIS modernisation programme. Focus groups undertaken with Bank personal
customers found that the issues of ‘service’, ‘relationship’ and ‘ethics’ are
of primary importance (Source: BDRC Customer Research 2000). Focus
groups undertaken with the Bank’s corporate and business customers,
found that ‘service’ and ‘relationship’ emerge as priority issues (Source:
Dataquest Customer Research 2001 ). The aforementioned stakeholder
dialogue continues to inform the development of indicators and customer
satisfaction research. 200 telephone interviews were undertaken with each
of the following groups of customers: (Bank personal) current account,
credit card, aff nity credit card, loan, savings and mortgage customers
(Nunwood Consulting December 2005); (CIS) telephone interviews with
(200 each of) motor insurance, home insurance, unit trust, life assurance and
pensions customers (Nunwood Consulting December 2005). 700 telephone
interviews were undertaken with corporate and business customers
(Dataquest February 2006). Additionally, Nunwood Consulting conducted an
e-survey with 500 smile customers in November 2005…

Staff

Who ? CIS and the Bank had 1 0,303 members of staff at the end of 2005
(2004: 1 2,938), of which 6,21 4 were contracted by CIS (2004: 8,791 ) and
4,089 were contracted by the Bank (2004: 4,1 47). These f gures include 95
temporary staff, but exclude 1 89 staff on maternity/adoption leave and 97
staff on career break…

What ? Qualitative research undertaken amongst Bank staff has indicated the
following to be priority issues, in descending order of importance: ‘salary
package’, ‘personal development and career opportunities’, ‘relationships
and working environment’, ‘job security’ and ‘co-operative culture and
ethical conduct’ (Source: Keeling Staff Research 2001 ). Given that CIS
operates in the same sector as the Bank (f nancial services) and both have
operations largely restricted to the UK and concentrated within the North
West of England, these priorities have been translated into CFS-wide
indicators and are considered to be generally applicable. In February 2006,
an opinion survey was again undertaken across CFS. This ascertained staff
satisfaction in the priority areas, and also looked at matters of well-being and
work/life balance. 62% of staff completed survey returns (2005: 45%), with
Identifying issues and stakeholder engagement

39

reported data collated by HI Europe. 1 5% of staff work part-time (2004:


1 2%), ranging from 9% (2004: 7%) of CIS-contracted staff, to 24% (2004:
23%) of Bank-contracted staff…

Suppliers

Who ? Over 1 ,000 different businesses supplied CIS and the Bank with
products and services in 2005 (where expenditure was more than £20,000).
The type of relationship between the supplier and CIS and/or the Bank
varies enormously, ranging from infrequent purchases to ongoing strategic
partnerships…

What ? Qualitative research undertaken amongst CIS and Bank suppliers


in 2004 con f rmed the following as priority issues, in descending order of
importance: ‘prompt payment’, ‘effective communication’, ‘fair treatment’
and ‘good relationships’ (Source: Nunwood Consulting 2004). As a
consequence, these areas continue to be regarded as priority indicators for
suppliers. Quantitative research was conducted via telephone interviews
with 35 CIS, 50 Bank and 72 suppliers who provided goods or services to
both CIS and the Bank (equivalent to 1 5% of suppliers). These interviews
sought to ascertain suppliers’ satisfaction in the priority areas, and their
opinions in connection with various aspects of ethics and sustainability…

Society

Who ? At the heart of CFS’ Sustainable Development Policy lies a recognition


of interdependence: the understanding that an organisation’s activities rely
for their success, and have an impact upon, the natural world and the six
billion people who inhabit it. More speci f cally, with its main off ces and
service centres in Manchester, Skelmersdale, Stockport and Salford, CFS is
very much in the heartland of Greater Manchester and the North West of
England. Additionally, CFS managed more than 200 other premises across
England, Scotland, Wales, Northern Ireland and the Channel Islands during
2005…

What ? Determining, for CFS, a common set of priorities directly with


society as a whole is next to impossible. Instead, the Bank has periodically
balloted customers on a series of Ethical Policy issues since 1 992. Customers
are both numerous and represent a good cross-section of society.
Additionally, the f rst ballot of CIS customers, which sought to determine
their social, ethical and environmental priorities, and their overall support
for a CIS Ethical Engagement Policy, took place in 2004. Over 44,000
A Handbook for Sustainable Development
40

customers responded to this consultation, which was preceded by three


rounds of focus groups. The most recent ballot of Bank customers (2001 )
saw 64,000 customers respond. A detailed analysis of the 1 998 Bank Ethical
Policy Review is provided in the Bank’s 1 998 Partnership Report (www.
co-operativebank.co.uk/partnership1 998). In addition, CFS consults with a
variety of external expert organisations, such as charities and campaigning
groups, which enjoy a high level of public trust. CFS treats these
organisations as proxy representatives of society…

Co-operative movement
Who ? The International Co-operative Alliance (www.coop.org) de f nes a
co-operative as ‘an autonomous association of persons united voluntarily
to meet their common economic, social, and cultural needs and aspirations
through a jointly-owned and democratically-controlled enterprise’
(Manchester 1 995). Co-operatives can be traced back to 1 844, when harsh
living conditions and inadequate consumer protection inspired 28 working
men to develop a new approach to the supply of food and other goods,
by setting up the Rochdale Equitable Pioneers Society. There are now
more than 800 million individual co-operators worldwide. Co-operatives
are involved in everything from food production and retailing, to banking,
insurance, travel, housing, health, education and leisure. The values inherited
from previous generations of co-operators are still highly applicable today;
not least the belief that business has a purpose beyond pro f t. Like the rest
of the Co-operative Group, CFS is conscious of its responsibilities to past
and future generations of co-operators, and strives to keep alive the values
passed down…

What ? In response to the recommendations of the Co-operative


Commission (www.co-opcommission.org.uk), which concluded in 2001 ,
UK
a working group was established by Co-operatives to devise and
promote indicators of co-operative and social performance. During 2004,
Co-operatives UK launched a basket of ten indicators (www.co-opunion.
coop). This followed consultation during 2003 with the membership of
Co-operativesUK (some 900 co-operatives of all shapes and sizes), of
whom more than 50 responded to an Exposure Draft of 1 6 indicators. The
indicators are considered to cover all seven of the Co-operative Principles,
and are promoted as a robust starting point for sustainability accounting and
reporting amongst co-operatives of all sizes. CFS’ reporting encompasses, in
full, the seven social indicators and, in part, the member indicators relating to
education and economic involvement. It does not encompass the indicator
relating to member democratic participation, as CFS is not under direct
Identifying issues and stakeholder engagement

41

member control. CFS’ reference to the work of Co-operatives UK supersedes


previous use of the reporting framework of Euro Co-op (www.eurocoop.
org), which was also based around the seven Co-operative Principles.

(Source: Co- operative Financial Services, 2 006)

Of course, at some point these different viewpoints need to be combined as

organizations, having listened to a range of stakeholder groups, set out the

issues in an integrated list. Case study 2 covers a very extensive list, which may

act as a checklist for some organizations to help start off their thinking.

Case study 2 — Marks and Spencer

[The following issues are grouped by subject and do not imply a


priority order.]

Making our operations more effcient

1. Carbon neutral –
Aiming to make all our UK and Republic of Ireland operations (stores,
off ces, warehouses, business travel and logistics) carbon neutral.

2. Energy eff ciency (stores) –


Reducing the amount of energy we use in our stores by 25% per square
foot of f oor space.

3. Energy eff ciency (warehouses and off ces) –


Achieving a 20% improvement in fuel eff ciency and energy use in our
warehouses and off ces.

4. Business travel –
Introducing a new ‘green’ business travel policy to reduce CO 2 emissions
caused by our travel.

5. Company cars –
Introducing a ‘green’ company car policy to reduce average CO 2
emissions.

6. BRE-EAM –
Targeting all new stores to achieve Building Research Establishments
Environmental Assessment Methodology (BRE-EAM) ‘excellent’ rating
and all other stores to be assessed against BRE-EAM rating system.
A Handbook for Sustainable Development
42

7. Green electricity –
Sourcing or generating 1 00% ‘green’ (renewable) electricity for M&S
stores, off ces and distribution centres in the UK and Republic of Ireland.

8. Anaerobic digestion –
Working in partnership to build and operate anaerobic digestion facilities
to generate renewable electricity.

9. Green stores –
Opening ‘green’ concept stores in Pollok, Galashiels and Bournemouth
in 2007.

1 0. On-site renewables –
Having 20% on-site energy generation from renewables in all new builds
where practicable.

1 1 . Bio-diesel –
Conducting trials and move towards the use of 50% bio-diesel in our
lorries as sustainable sources become available.

1 2. Green transport –
Introducing innovative new transport technologies and set further
targets as these become proven.

1 3. EURO engines –
Progressively converting delivery f eets to cleaner EURO IV and V
standard engines.

1 4. Carbon offsetting –
Working with the Government and environmental groups to develop an
acceptable approach to using carbon offsets where no other method of
reducing CO 2 emissions is available.

1 5. Refrigerants –
Continuing to replace HCFC gases and help to develop better
alternatives than HFCs for use in our refrigeration and air-conditioning
systems.

Helping reduce emissions in our supply chain


1 6. UK and Republic of Ireland –
Sourcing as much food as possible from the UK and Republic of Ireland.

1 7. Seasonal food –
Launching f ve Research and Development projects to extend UK grow-
ing seasons and develop new varieties that reduce the need for imports.
Identifying issues and stakeholder engagement

43

1 8. Supplier logistics –
Working with our suppliers to understand how we can improve the
eff ciency of their deliveries to our distribution centres, including
increasing the use of rail transport.

1 9. Food ‘carbon footprint’ –


Working with the Carbon Trust we will identify carbon ‘hot spots’ in our
food supply chain in 2007 and set targets to reduce CO 2 emissions.

20. Reducing air freight –


Investigating and minimising our use of air freight whilst balancing the
need to trade with developing countries and provide nutritional choice.

21 . Supplier Exchange (climate) –


Mobilising our key suppliers via our Supplier Exchange to signi f cantly
reduce their CO 2 emissions.

22. Green factories –


Supporting the development of ‘green’ factories with our suppliers.

23. Agricultural carbon balance –


Undertaking research to understand the carbon balance associated with
the production of agricultural raw materials.

Helping our customers to address climate change


24. Labelling air freighted food –
Labelling all air freighted food products within 1 2 months.

25. Carbon labelling –


Supporting the work of the Carbon Trust to develop a carbon labelling
scheme for consumer products and services.

26. Low carbon products –


Developing and selling products with a lower carbon impact.

27. Footprint Campaign –


Launching campaigns with the WWF and National Federation of
Women’s Institutes – to help our customers and employees understand
their ‘carbon footprint’ and how to reduce it.

28. The Climate Group Campaign –


Working with the Climate Group on a major educational campaign in
2007 encouraging people to wash clothes at 30 degrees to cut energy
use and CO 2 emissions.
A Handbook for Sustainable Development
44

29. Public transport and cycling –


Progressively introducing facilities to encourage the use of public trans-
port and cycling for both customers and employees where appropriate.

Reducing waste from our stores, offces and distribution centres

30. No operational waste to land f ll –


Aiming to ensure that M&S operations in the UK and Republic of Ireland
(stores, off ces and warehouses) will send no waste to land f ll.

31 . Food waste (reduction) –


Setting targets over the next 1 2 months to reduce food waste from our
stores and distribution centres.

32. Food waste (alternative disposal) –


Sending all remaining food waste to some form of recycling including
composting and anaerobic digestion.

33. Construction waste –


Sending no waste to land f ll from M&S store construction programmes.

34. Construction and f t-out materials –


Working with WRAP (Waste and Resources Action Programme) to
increase the amount of recycled materials used in the construction and
‘ f t-out’ of our stores.

35. Café Closed-Loop –


Trialling closed-loop recycling for packaging in Café Revives over the
next 1 2 months.

36. Consumables –
Improving our use of recycled and recyclable materials in consumable
items used in our stores and off ces.

Reducing packaging and ensuring that it’s easy to recycle

37. Packaging (reduction) –


Reducing the weight of non-glass packaging by 25%.

38. Packaging (sustainable raw materials) –


Increasing the amount of packaging made from more sustainable raw
materials such as recycled materials and Forest Stewardship Council
wood pulp.
Identifying issues and stakeholder engagement

45

39. Packaging (recycling and composting) –


Ensuring that all packaging can be easily recycled or composted, accept-
ing that in some case[s] this may require the use of heavier materials.

40. Packaging (WRAP logos) –


Labelling all our packaging with the WRAP and Recycle Now symbols.

41 . Packaging (Courtauld Commitment) –


Continuing to work with WRAP in order to achieve the targets
to reduce packaging and food waste contained in the Courtauld
Commitment between 2008–201 0.

Reducing waste from our products and making them easy to recycle

42. Bin bags –


Launching a range of bin bags made from recycled polythene collected
from M&S distribution centres.

43. Clothing hangers –


Extending hanger recycling with a customer awareness campaign to
build on the 50 million we currently recycle and re-use each year.

44. Customer recycling services –


Introducing a range of recycling services for our customers including a
project for used clothing.

Reducing our use of carrier bags

45. Carrier bags (reduction) –


Reducing carrier bag use by 33% by 201 0 including launching a ‘No to
Bags’ campaign.

46. Carrier bags (recycled plastic) –


Making our remaining carrier bags out of recycled polythene by 2008/09.

47. Carrier bag agreement –


Working with Department for the Environment, Food and Rural Affairs
(DEFRA), the British Retail Consortium and Waste & Resources Action
Programme to reduce the overall environmental impact of carrier bags
by (at least) 25% by the end of 2008.
A Handbook for Sustainable Development
46

Farming

48. Sustainable farming –


Producing our fruit, vegetables, salads and meat to independent
environmental standards and developing a set of sustainable farming
measurements to demonstrate the environmental benef ts of these
standards.

49. Organic food –


Tripling our sales of organic food in the UK and Republic of Ireland.

50. Pesticides (phase out) –


Phasing out a further 1 9 pesticides used in fruit, vegetable and salad
production by the start of 201 0 in addition to the 60 we have already
banned.

51 . Pesticides (post-harvest) –
Eliminating the post-harvest usage of pesticides on our fruit, vegetables
and salads.

52. Pesticides (Network) –


Launching a Pesticide Residue Reduction Network with our suppliers.

53. Non-GM –
Maintaining our non-GM food policy.

54. Sustainable textiles –


Reducing the environmental impact of the textiles we sell by trialling
new f bres such as bamboo, renewable plastics and new ways of
producing f bres such as organic cotton, linen and wool.

55. Cotton –
Launching a sustainability strategy covering all our cotton including
approaches such as ‘Fairtrade’, organic and the international cotton
industry ‘Better Cotton Initiative’ by 2008.

56. Food commodities –


Working with key stakeholder groups, including the ‘Roundtable for
Sustainable Palm Oil’ and the ‘Roundtable for Sustainable Soy’ to set
acceptable standards. Set targets for our usage once these standards
become available.
Identifying issues and stakeholder engagement

47

Harvesting natural materials


57. Wood –
Making sure all the wood we use is FSC certi f ed (or where FSC is not
available, an equivalent independent standard) or is recycled.

58. Fish –
Ensuring all the f sh (fresh and processed) we sell is Marine Stewardship
Council (MSC) certi f ed or, where MSC is not available, another
equivalent independent standard.

Man-made materials
59. Dye-houses –
Further improving our auditing system for dye-houses to ensure
compliance with our sector leading environmental and health and safety
standards.

60. Polyester –
Using recycled plastic (e.g. used bottles) to make polyester, rather
than using oil. Make ranges of men’s, women’s and children’s polyester
f eeces from recycled plastic within a year. Extend to other polyester
ranges such as trousers, suits and furniture ‘ f ll’ by 201 2.

Animal wel fare


61 . Clothing standards –
Improving traceability in our non-food supply chains for animal-derived
raw materials and work with animal welfare groups to develop sourcing
policies on animal welfare for leather and wool.

62. Fixed cut off date for animal testing –


Launching a f xed cut off date commitment for all our beauty products.

63. Free range –


Converting all our fresh turkey, geese, duck and pork products to free
range.

64. ‘Oakham chicken’ –


Further improve stocking densities for our welfare award winning
‘Oakham chicken’.
A Handbook for Sustainable Development
48

Water use

65. Water eff ciency (stores and off ces) –


Reducing our store and off ce mains water usage by 20%.

66. Water eff ciency (suppliers) –


Working with our suppliers to improve the eff ciency of water use
during the production of raw materials and products.

Store construction and equipment

67. Stores (raw materials) –


Setting sustainable raw material standards for store construction and
equipment.

Supply chain standards


68. Unannounced assessments –
Introducing random checking of our suppliers to ensure they are
working to our Global Sourcing Principles at all times.

69. In-country resources –


Increasing the number of people based in the countries of production
to follow up concerns identi f ed by our assessment system within
1 2 months.

70. Ethical Trading Initiative standards –


Working with our suppliers within the Supplier Exchange to share best
practices on issues such as working hours and living wages.

71 . Ethical trading assessments –


Extending the scope of our ethical trading assessments to include other
parts of our supply chains e.g. laundries, embroidery operations and
goods not for resale.

72. Con f dential complaints –


Trialling a con f dential worker complaints mechanism for workers in
2007/08.

73. Product information –


Introducing an enhanced web-based system that further improves the
information we have about factories and raw material suppliers within
three years.
Identifying issues and stakeholder engagement

49

Responsible buying

74. Supplier ranking –


Introducing a benchmarking system for clothing and home suppliers
(e.g. gold, silver, bronze) covering ethical trading and participation in our
Supplier Exchange initiatives by the start of 2008.

75. Buying guidelines –


Further developing our responsible buying guidelines and integrating
them into our buying processes.

76. Small suppliers –


Increasing our use of small and small local suppliers by improving the
understanding of our buying teams of the different needs of small
producers.

Support for UK farmers

77. Buying Pledges –


Extending our Milk Buying Pledge, that offers a guaranteed set price, to
other types of food in consultation with our farmers.

78. Linking customers and producers –


Connecting our customers to our suppliers by developing a website
providing information on how and where UK foods are produced.

79. Regional food sourcing –


Doubling the amount of food we source regionally and improve the
information we provide to customers.

‘Fairtrade’

80. ‘Fairtrade’ food –


Continuing to expand our ranges of ‘Fairtrade’ food including converting
all our jams, conserves, and bagged sugar to ‘Fairtrade’ and offering
more ‘Fairtrade’ fruit, wine and other products.

81 . ‘Fairtrade’ clothing –
Converting 20 million clothing garments including £5 plain t-shirts,
women’s strappy vests and oxford shirts to ‘Fairtrade’ cotton – equal to
1 0% of all M&S cotton use.
A Handbook for Sustainable Development
50

Support for suppliers

82. Supplier Exchange –


Launching a Supplier Exchange to drive best practices, stimulate
innovation and help suppliers secure funds to develop more sustainable
production techniques and invest in their workforces and local
communities.

83. Supplier Community Investment –


Working with our suppliers via our Supplier Exchange to help them
invest to improve livelihoods in vulnerable communities.

Employee involvement

84. ‘Marks & Start’ –


Continuing to help disadvantaged groups like the disabled and homeless
get into jobs via work placements in our stores, off ces and suppliers
factories.

85. Plan A Champions –


Appointing and training Plan A Champions in all our stores and off ces.

Engaging customers

86. Customer campaigns –


Developing and launching initiatives on environmental and international
community issues.

87. Breakthrough Breast Cancer –


Maintaining our campaigns with Breakthrough Breast Cancer.

Engaging franchise partners

88. Franchise Exchange –


Launching a website for our franchise partners to inform them about
Plan A and the activities that they could undertake in their own
businesses.

Providing healthier foods

89. ‘Eat Well’ –


Increasing the amount of… nutritionally-balanced food we sell from
30% of our food to 50%.
Identifying issues and stakeholder engagement

51

90. Labelling –
Introducing the use of nutritional traff c lights to relevant food products.

91 . Children’s sweets –
Removing children’s sweets from till points.

92. Natural colours –


Using only natural colours in our children’s sweets and cakes by the
start of 2008.

93. Salt –
Making further reductions to the amount of salt in our foods by working
to M&S targets, many of which go beyond those set by the FSA.

94. Omega 3 (salmon) –


Ensuring all our fresh salmon meets our new… standards (enriched
with Omega-3) during 2007/08.

95. Natural enrichment –


Developing agricultural projects to provide naturally-enriched foods.

96. Nutritional enrichment –


Developing nutritionally-enriched product choices within selected
ranges.

Encouraging healthier li festyles

97. Healthy Eating Advisers –


Introducing 1 ,500 Healthy Eating Advisers in our stores and extend this
training to our food section employees by the start of 201 0.

98. Health campaigns –


Launching at least two major health initiatives for our employees and
customers.

99. Diet and Health information –


Evaluating the most effective means of providing expert Diet
and Health information to customers including: trialling in-store
Nutritionists and the provision of a Nutrition customer care line.

1 00. Lifestyle information –


Providing improved health and lifestyle information to our employees
and customers.

(Source: M arks and Spencer Group plc, 2 007)


A Handbook for Sustainable Development
52

BS 8900 suggests general criteria for identifying key issues, but the more speci fc
related standards, that are being developed as standards which can be used to

obtain certi fcation, are more detailed. Example 1 0 provides an extract from

the British Standard on sustainable events (BS 8901 : 2006, Speci f cation for

a sustainable event management system with guidance for use) , regarding key
issue identi fcation.

Example 10 — Key issue identifcation


[Identifying these key issues will provide a focus for developing an
implementation plan.]

Table 1 – Examples of potential sustainability


issues in event management
NOTE The possible objectives listed are not prescriptive and do not need to be met by every
organization to achieve compliance with this standard. However, organizations may want to consider
them as a route to compliance.

Categories Questions to determine Possible objectives


whether an issue exists

Environmental

Climate change Will the activity generate energy Reduce energy use/demand.
demands? Promote the use of renewable
supplies of energy.
Offset carbon emissions associated
with energy use.

Will the activity generate an Reduce the need for transport and
increased need for travel? promote eff cient modes of travel
and renewable fuels.
Offset carbon emissions associated
with transport use.

Air quality Will the technologies employed Reduce emissions to air by promoting
for the activity’s energy supply and low emission technologies for energy
transport generate air emissions? supply and transport.

Water use Will the activity require water? Minimize water use and promote
water eff ciency.
Identifying issues and stakeholder engagement

53

Table 1 – Examples of potential sustainability


issues in event management (cont’d)

Categories Questions to determine Possible objectives


whether an issue exists

Environmental

Emissions to Will the activity affect the water Maintain water quality and prevent
water quality? pollution.

Will the activity affect the Protect watercourses and prevent


watercourses? pollution.

Land use Will the activity require previously Optimize the use of previously
developed land (rather than developed land when selecting the
green f eld sites) to be used? location of an event.

Will the activity affect its Design the event building/


surroundings? structure with consideration to its
surroundings/mitigate effects in
surrounding areas.

Biodiversity Will the activity affect existing Protect existing biodiversity


biodiversity resources? resources.
Implement opportunities to enhance
habitats and species.

Archaeology and Will the activity affect sites of Protect sites of archaeological or
cultural heritage archaeological or cultural interest? cultural interest.

Emissions to land Will the activity give rise to risks of Minimize risks of ground
ground contamination at the site? contamination at the site.

Solid waste Will the activity generate waste Minimize the amount of waste
management materials? materials produced.
Encourage re-use, recycling and
recovery of waste.

Environmental, social and economic

Procurement Will recyclable or re-useable waste Promote “closed loop” waste


– product be generated from the activity’s management by purchasing re-usable
stewardship purchased products? products or products with a recycled
content.

Will the activity give rise to ethical Promote ethical and environmental
or environmental issues from the issues in the procurement of
procurement of products? products.
A Handbook for Sustainable Development
54

Table 1 – Examples of potential sustainability


issues in event management (cont’d)
Categories Questions to determine Possible objectives
whether an issue exists

Environmental, social and economic

Will the activity give rise to ethical Promote ethical and environmental
or environmental issues from the issues in the supply chain.
supply chain?

Are the contractual terms fair? Ensure fair contract terms with
suppliers.

Will those employed during Promote fair terms of employment


the activity have fair terms of for those employed during the event.
employment?

Will products/services required for Promote the use of locally produced


the activity be produced/sourced and sourced products and services
locally? to reduce transport impacts and
support the local economy.

Social and economic

Health, safety and Could the activity impact Ensure the health, safety and well-
comfort negatively on the health, safety and being of the stakeholders at or likely
well-being of event stakeholders? to be affected by the event.

Security Could the activity give rise to Maximize security and the sense of
security issues? well-being of visitors, exhibitors and
speakers.

Equal opportunity Will the activity ensure equality Ensure equality for all in relation to
and diversity for all? the event.

Community, local Will the activity give rise to Encourage investment in local skills
employment and investment in local skills and and employment.
skills employment?

Will the activity cause nuisance to Avoid nuisance to the local


the local community? community.

Amenity Will the activity provide suitable Provide suitable amenities to enhance
amenities to enhance the area/site the area/site and visitor experience.
and visitor experience?

Viability Will the activity be viable Ensure the f nancial viability of the
f nancially? event, including security of funding.
Identifying issues and stakeholder engagement

55

Table 1 – Examples of potential sustainability


issues in event management (cont’d)

Categories Questions to determine Possible objectives


whether an issue exists

Managing delivery

Governance Will there be an appropriate Implement an appropriate


governance framework for the governance framework to manage
activity in terms of sustainable sustainable delivery of the event.
event delivery?

Communication, Will there be regular Communicate with stakeholders


stakeholder communication with stakeholders regularly to encourage improved
engagement and throughout the activity to sustainability performance.
awareness raising encourage improved sustainability
performance?

Supply chain Will the costs and benef ts of the Ensure that the costs and benef ts
management event be shared fairly throughout of sustainable events are equitable
the supply chain? throughout the supply chain.

Will supply chain management Implement supply chain management


procedures be put in place for the procedures that successfully deliver
activity to achieve a desired level the sustainability objectives of the
of sustainability performance? event.

BS 8901:2006 suggests applying the following criteria to the sustainability


issues identifed:
1. the magnitude of effects : i.e. the size of the effects. For example, an event that
is required to provide catering facilities for 10,000 people is more likely to
have a signifcant effect than an event catering for 50 people;
2. the time period over which the effects occur: a week-long festival is more
likely to have signifcant effects than a comparable event taking place over a
weekend;
3. whether the effects are permanent or temporary : for example, construction
for a major event may result in loss of green space or habitat through
permanently altered land use, whereas damage or disruption to green space
or habitat from erecting temporary structures may not. This could also take
into account any intended (i.e. positive) legacy effects of the event;
4. whether the effects are positive or negative: although identifcation of issues
generally tends to identify negative consequences of activities, it is important
to appreciate that activities can also generate positive effects. For example,
A Handbook for Sustainable Development
56

fxtures and fttings that would otherwise contribute to the waste stream
could be donated to local charities or community groups;
5. the probability of the effects occurring: if the probability of an effect occurring
is high, then there is a greater likelihood of resources being required to
mitigate potential effects, and as a consequence, the signifcance of the
effect is higher. For example, one would expect the probability of a serious
accident/incident occurring at an air show or motor-racing event to be
higher than at an awards ceremony. The level of signifcance would suggest
the need for a higher level of emergency response;
6. the frequency of event occurrence: if an effect occurs more frequently, it will
be more signifcant than if it only occurs occasionally. For example, some
events are weekly (e.g. football fxtures during the winter months), whereas
others might occur only once a year (e.g. a motor show);
7. whether there are cumulative effects : an effect may be more signifcant if it is
considered alongside other activities, events, projects, etc. that have similar
effects. For example, the effect of spectators exiting from an event en mass
during peak travel times is likely to be more signifcant than outside of peak
hours;
8. whether there are secondary effects : secondary effects should also be
considered when determining an issue’s signifcance. For example, an event
that generates additional traffc loads may in turn lead to signifcant traffc
congestion, lowering of air quality due to vehicle emissions and higher
accident rates;
9. whether there are synergistic effects : an example of a synergistic effect is when
the effects of crowding (e.g. of spectators) are more signifcant when the
weather is extremely hot, due to discomfort (behaviour and security) and/or
health impacts (heat stroke, etc.).

Conclusion
Effective sustainable development is built on the foundations of:
• ongoing stakeholder engagement; and
• clarifying key issues and prioritizing them.
Both are ongoing processes.
Without these two areas operating well it is likely that sustainable
development will be diffcult to target and, particularly, embed throughout
the organization.
Identifying issues and stakeholder engagement

57

References
Co-operative Financial Services (CFS) (2006) Co-operative Financial Services
Sustainability Report 2005, Manchester: CFS. Available at http://www.cfs.
co.uk/sustainability2005
Marks and Spencer Group plc (2007) How we do Business 2007 Report, London:
Marks and Spencer Group plc. Available at http://www.marksandspencer.com/
howwedobusinessreport2007
BS 8901:2006, Specifcation for a sustainable event management system with
guidance for use, London: British Standards Institution
58

Chapter 5: Embedding a culture


of sustainability

Introduction
BS 8900 then moves on to practical models of embedding and maintaining a
sustainable approach across an organization. This is defnitely not management
system speak but is focused on the essence of managing sustainable development.
There is great store placed on stakeholder engagement that means something
and is ongoing – not a one-off publicity exercise. The emphasis is on quality
and breadth of engagement and the two-way nature of the process. For example,
it is suggested that when stakeholders are asked for input (maybe through a
consultation process) and some of the signifcant proposals are not taken up, the
organization concerned should give its reasons for not acting on those particular
proposals. This may also trigger an education-style exercise to explain the
organization’s thinking more fully, so that there is improved understanding across
the stakeholder group. This is a more sustainable outcome, if only to reduce the
likelihood of the same cycle of feedback and possible frustration occurring next
time around.
BS 8900 covers two distinctive techniques:
1. presenting questions as a framework for developing company-specifc
principles, developing new thinking and implementing socially responsible
practice; and
2. proposing a development matrix as a template for assessing existing
corporate culture, identifying issues and aligning paths for future possible
progress.
Embedding a culture of sustainability

59

These are perhaps the most important and unusual aspects of the standard.

The aim is to encourage and guide the thinking of the user rather than tell the

user precisely what to do. It is a standard in the sense that BS 8900 provides

f
a framework of how to identify, consider and weigh up dif cult issues and

priorities, and then apply sustainable development. How that stimulation,

challenge to existing thinking and continual re-evaluation is brought about is at

the heart of BS 8900.

Building a culture of sustainability


The driver or agitator of change comes from the use of questions throughout

the standard, constantly challenging what may already be in place and pointing

towards issues that must be considered if you are to be sustainable. This is

a basic educational tool that has been adapted from the normal educational

context for use by businesses, organizations and communities, and applies to

considerations across wider society. These techniques have been employed

in fnancial services regulation with the same end in mind, of gaining broad-
based engagement and ownership of growth and development. This mindset of

questioning differently, evolving balances in priorities and continual learning

from experience (and elsewhere) is a very powerful model for embedding a

culture of change that is, critically, sustainable.

The questions might include the following.

• What are the outcomes of what you do – both short and long term?

• What steps have you taken to reduce your environmental footprint?

• How do you bene ft the local and wider community?


Organizations can have profound impacts beyond their immediate stakeholders:

on the environment, on producers on the other side of the world, and on other

people who come in to contact with their products. When considering the out-

comes of what we do, we therefore need to be mindful of the wider implications.

Timescales and sustainability are also important. Sometimes our actions

can be bene fcial in the short term, only to have serious negative consequences
in the long term, and vice versa.

An ongoing process of questioning probably takes place. A second level of

questions might include the following.

• How can you be sure no groups or individuals are disadvantaged or kept in

the dark?

• How do you try to deal with others with integrity?


A Handbook for Sustainable Development
60

• Will organizational decisions lead to irreversible environmental or societal

change?

• How do you make certain that relevant and reliable information is available

in an accessible, low-cost and comparable way?

• How are signi fcant interests, infuences and benefts recorded,


communicated and managed?

The idea is to create a kind of crossroads where issues can be looked at from many

different angles and the intersection provides an indication of a way forward.

Again, it is necessary to re fect back on your agreed outcomes, which now


may start to become more de fned.
It is important to get sustainable development as an agenda item in the

everyday thinking of the organization. It may be useful to insert questions in

board agendas, management meetings and appraisals, or regarding HR policies.

You could consider inserting the following in everyday meeting or

decision-making agendas, for example:

• How does your long-term view balance short-term expediency?

• Who bene fts, who loses out – and why?


• How can you establish sustainable win-wins?

• Have alternative routes been evaluated, to examine the most sustainable

outcomes?

• Do you balance your responsibilities to all stakeholders?

The aim is to get sustainability as a subj ect into all parts of your business, to

ensure that it is acceptable for everyone, at all levels, to raise sustainability issues

or questions. This may involve some discomfort if you allow people to try ideas

out and make mistakes, but overall there is no need for this to add cost or disrupt

normal operations, other than to nudge the organization in a sustainable direction.

You may wish to ask the following.

• Do you embed frameworks that support and promote the continual

development of sustainability by staff themselves, especially by allowing the

experience of applying sustainable principles in practice?

• Do you allow time/space in meetings, formally and informally, and at board

level, to evaluate and consider sustainable implications and to learn from

experience?

• Do you allow space and resource for personal development in the

sustainability area?

• Do you search for relevant case studies and apply helpful codes or

standards?
Embedding a culture of sustainability

61

• Are your codes and example materials primarily developed by yourselves

and not transplanted, possibly unthinkingly, from others?

Putting sustainability into practice in all parts of the organization is the chal-

lenge. Examples 1 1 and 1 2 provide some illustration of this.

Example 1 1 — ExxonMobil Corporation

Putting biodiversity principles into practice

Cepu, Indonesia —- 3D seismic exploration


Conducting Seismic exploration onshore requires extensive planning and
preparation in order to minimize the environmental footprint, maintain
high safety performance and achieve business and technical goals. The
process involves sending sound waves into the ground and recording
re f ections as the waves bounce off different layers within the earth. These
re f ections give geoscientists information that helps them determine the
presence of oil and gas.

In Cepu, Indonesia, seismic data was acquired over an area of 1 200 square
kilometers. To support the efforts of up to 3000 workers over a 1 5-month
period, 64 temporary worker camps were built in addition to the main
base camp. The Cepu area contains teak forests, rice f elds, roads, railroads,
a major river, numerous towns and villages and a population of about
3 million. The challenge was to conduct the survey in harmony with the
local environment.

Prior to the survey, the environmental assessment was completed which


included a review of available literature on the biology, culture and
economics of the area, surface water and groundwater sampling, and wildlife
observations. In addition, ExxonMobil met with elders and off cials from 31 4
villages within the survey area. Based on community input and assessment
f ndings, limits were placed on f eld activities and camps were located in
areas to minimize the environmental and social footprint.

The project was designed to avoid the need to move vehicles cross-country,
thus minimizing the clearing of vegetation and avoiding the rutting and soil
disturbance issues associated with heavy vehicles. This method reduces the
environmental and social impact; however, it requires a signi f cant number of
workers to perform tasks.
A Handbook for Sustainable Development
62

During operations, environmental management plans were in place to


ensure that all wastes generated at the camp sites were disposed of
properly. This included capture of all sewage, and disposal of all waste offsite
in approved disposal facilities. At the completion of the survey, all worker
camps and seismic lines were reclaimed to their original condition. The
entire survey was conducted safely for workers and the public, with minimal
impacts on the forests, wildlife and day-to-day life of the villagers.

© Copyright 2003–2007 ExxonMobil Corporation. All Rights Reserved

(Source: http://www. exxonmobil. com/Corporate/


energy_biodiversity_principles. aspx)

Example 12 — Quarry Products Association


Terminal 5 is Britain’s largest current construction project. When its f rst
phase opens in 2008, it will allow Heathrow to handle an extra 30 million
passengers a year. At its peak, the site has consumed nearly 4,000 cubic
metres of concrete every day.

The aggregates for T5 have come from Foster Yeoman’s Torr Quarry in
Somerset, so helping to sustain 1 30 rural jobs. To win the job, the company
invested in a new railhead at Colnbrook which can store up to 40,000
tonnes of aggregates. It has received up to 23 trains a week – the equivalent
of 1 ,500 lorry journeys. The result is a massive reduction in both traff c and
carbon dioxide emissions.

The sustainable development credentials of this project are further


strengthened by the fact that Foster Yeoman has engaged a recycled
aggregate partner. Day Aggregates has supplied over a quarter of a million
tonnes of processed demolition and construction wastes drawn from all
over west London.

(Source: Quarry Products Association, 2 006)

References
Quarry Products Association (QPA) (2006) A Sustainable Development Report
from the Aggregates and Quarry Products Industry (‘Sustainable Development
Report March 2006’) , London: QPA. Available at http: //www. qpa. org/sus_

report01 . htm
63

Chapter 6: Putting sustainable development


into practice – key management issues
BS 8900 is not a management standard. There are many you can refer to, such as

the ISO 9000 series, and there is no need to repeat here the quality management

f
or ef ciency principles of the ‘Plan-Do-Check-Act’ (or PDCA) cycle.

N ote: ISO 1 4040, ISO 1 4044, ISO/TR 1 4047, ISO/TS 1 4048 and ISO/

TR 1 4049 provide guidance on life cycle management.

BS 8900 does emphasize several aspects of practical implementation.

1 . Vision and leadership


There is a need for a coherent view across an organization. Ideally, this includes

a commitment to sustainable development at the highest level. However,

leadership does not need to be so top-down and there can be champions and

implementers at all levels within the organization.

The key is having a clear vision of the outcomes the organization is trying

to achieve, and articulating it in a way that is accessible to all levels within

the organization and to stakeholders beyond the organization. This is part of

articulating a clear purpose for the organization, and to do so the principles of

sustainability need to be incorporated within the values of the organization.

Management commitment is key, and BS 8900 identi fes the importance


of incorporating sustainability within everyday management planning, using

strategic discussions to detail actions.

Sustainable development may be seen as part of the risk framework.

However, while claiming a sustainable set of credentials may carry some


A Handbook for Sustainable Development
64

reputational risk, it is possibly more appropriate to consider the opportunities

offered by a commitment to sustainability.

Organizational governance

In a situation where decisions are often fnely balanced in relation to sustainabil-


ity, it is even more important to maintain transparency and to deal with conf icts

of interest proportionally and effectively. There are numerous codes of practice

in this area. In the UK, the most useful is the Combined Code on Corporate
1
Governance issued by the Hampel Committee in J uly 2003 .

The organization may wish to consider the following.

• Do you have processes in place to identify and manage con ficts of interest
fcant interests or infuences?
and signi

• Do you have speci f c training to ensure con f icts can be identi f ed and dealt

with?

• Do you provide help to others outside the organization in mitigating or

resolving broader con ficts of interest and pressures that also impact on you?
• Do you have a register of external connections? Is the register made available

in an easy, accessible way to all relevant staff?

• Do you have a register of signi fcant individual, senior management and


board interests?

• Do you always clarify and make transparent all senior-level potential

conficts of interest and connections?


• Do you ensure all signi f cant inf uences, such as bene f ciaries, are publicly

identi f ed?

2. Capability and capacity


Intrinsic within the idea of embedding a culture of sustainability within an

organization (see Chapter 5 ) is the need for staff to gain experience and

understanding of the sustainable approach, so that they can apply it in practice

and make appropriate provisions, even, perhaps, when not fully supervised. The

emphasis within staff development is on:

• recruitment;

• learning and development; and

• appraisal and reward.

1 Available to download from http: //www. shef. ac. uk/cuc/pubs/CHEMS_Higgs_Code. pdf.


Putting sustainable development into practice – key management issues

65

It is necessary to be clear with potential recruits about the expectations


and responsibility that will be placed on them as part of a responsible and
sustainable organization. Similarly, it is also necessary to explicitly include
sustainable issues, alternatives and valuation techniques within the mainstream
of training and development. Finally, the organization will probably obtain
the most commitment to ongoing sustainable actions by incorporating clear
measures within its appraisal and reward systems that make a direct connection
between sustainable commitment and salaries/bonuses.
To achieve the latter, it is also necessary to consider appropriate measures
of sustainable development for the organization. These should form part of the
mainstream recording, tracking and management systems – rather than being an
adjunct, to one side.
These measures need to relate directly to the outcomes, principles and
vision set out in the organization’s strategy, and refect the commitment to the
engagement of stakeholders and embed a culture of sustainability within the
organization.
Note: for further information on the identifcation, planning, implementa-
tion and measurement of processes, see the paper giving Guidance on the Concept
and Use of the Process Approach for management systems (ISO/TC 176/SC 2, 2004).

These measures should be, for example, fexible, refect changes to


external and internal environments, and refect moving horizons in the area of
sustainable development.
Factors that the organization should consider include:
• future technologies;
• the socio-economic environment (in particular, factors such as the market-
place and competitor activity);
• the political environment;
• the availability of resources;
• possible changes in the balance between the needs and expectations of
interested parties.
It is critical that the organization is a learning organization, i.e. that it is able to
draw from experience and continue to challenge and evolve its principles and
their practical applications.
It may be necessary for certain individuals to be designated champions of
sustainable development, but in broad terms it is better that a frm’s sustainable
development thinking is incorporated into all aspects of management and human
A Handbook for Sustainable Development
66

resources. It is preferable that all accept ownership and responsibility to deal

with problems and opportunities, rather than leaving this to a few individuals.

The organization may need to consider its competence framework and

inserting or amending competencies directly related to sustainable thinking

and action.

Competencies may include:

• demonstrable ethical decision making at all levels, including team meetings,

individual assignments and at board level;

• widespread experience in making evaluations and j udgements based on

ethical principles and values;

• the capability to hold and balance complex, varied issues and interests, and

to resolve signi fcant ethical dilemmas.


Where appraisal or review identi fes gaps, appropriate training may be required.
The Investors in People (IIP) model and assessment scheme provides a suitable

structure for those frms wishing to develop their staff training schemes or
refocus their organizations (see Example 1 3 ) .

Example 13 — Investors in People


The Investors in People Standard will give you a framework to ensure that
you achieve this. It doesn’t matter what size or type of organisation you
are, the Investors in People standard is there to help you improve the way
you work. You have to meet the same criteria – or ‘indicators’ – as other
organisations, but the Standard recognises that you will meet them in your
own way. Investors in People recognises that organisations use different
means to achieve success through their people. It does not prescribe any
one method but provides a framework to help you f nd the most suitable
means for achieving success through your people.

(Source: http://www. investorsinpeople. co. uk/Standard/Pages/Default. aspx)

Example 1 4 illustrates some of the Investors in People criteria.

Example 14 — Some Investors in People criteria


Indicator 1 : A strategy for improving the performance of the organisation is
clearly de f ned and understood.
Putting sustainable development into practice – key management issues

67

… 1 Top managers make sure the organisation has a clear purpose and vision
supported by a strategy for improving its performance…

2 Top managers make sure the organisation has a business plan with
measurable performance objectives…

3 Top managers make sure there are constructive relationships with


representative groups (where they exist) and the groups are consulted when
developing the organisation’s business plan…

4 Managers can describe how they involve people when developing


the organisation’s business plan and when agreeing team and individual
objectives…

5 People who are members of representative groups can con f rm that top
managers make sure there are constructive relationships with the groups
and they are consulted when developing the organisation’s business plan…

6 People can explain the objectives of their team and the organisation at
a level that is appropriate to their role, and can describe how they are
expected to contribute to developing and achieving them.

(Source: http://www. investorsinpeople. co. uk/Documents/


OnlineCommunities/Version%2 09%2 0Guidance%2 0(Std) %2 0v1 . pdf)

The organization may wish to consider the following points.

On training and development:

• Do you create situations where individuals, teams or organizations are

allowed to apply sustainable development practices that fall within the

organization’s vision or code themselves?

• Do you create environments that encourage and support individuals and

teams in developing their con fdence and capability in applying sustainable


development?

• Do you create structures that require or encourage individuals or groups at

all levels to apply their sustainability principles, and to face and deal with

f
dif cult situations or issues?

• Are you conscious about building your ethical capacity and honest about

any shortcomings?

• Do you look for opportunities to bene ft from sustainable development


trends and relevant initiatives?
A Handbook for Sustainable Development
68

On appraisal and reward:

• In what ways are you recognizing sustainable performance?

• How does this translate into target setting and prioritization day to day?

• How is sustainable development explicitly recognized in your appraisal

process and reward structure?

• How does sustainable development contribute to succession and promotion

decisions?

• How do you celebrate all recognized success in sustainable development,

internally and externally?

3. Supply chain management


Procurement is not developed in BS 8900, but it is an important issue and is

more fully covered in the subsequent standards under development that can be

used to obtain certi fcation. The extract in Example 1 5 is taken from the British

Standard on sustainable events (BS 8901 , Speci f cation for sustainable event
management systems with guidance for use) .

Example 15 — Sustainable procurement


What is sustainable procurement and why is it required?

Successful implementation of sustainable event management depends on


the sustainability objectives being extended throughout the supply chain.
This requires engagement with a wide range of suppliers, from specialists to
non-specialists. The following section provides information on sustainable
procurement and a checklist of potential issues is provided in Table B.1 .

Sustainable procurement is the integration of sustainability management into


all aspects of the procurement cycle including:

a) de f ning the need for sustainable procurement;


b) evaluating possible options;
c) design and speci f cation;
d) supplier selection;
e) tender evaluation;
f) post-contract management;
g) supplier development; and
h) performance review.

Four key aims should be addressed when integrating sustainability manage-


ment into the procurement process:
Putting sustainable development into practice – key management issues

69

1 . minimizing the impacts of products and/or services (e.g. impacts on


health, air quality, generation of hazardous waste);
2. minimizing demand for resources (e.g. by using resource-eff cient
products such as energy-eff cient appliances, fuel-eff cient vehicles and
products incorporating recycled content); and
3. minimizing the negative impacts of the supply chain itself, in particular
the social aspects (e.g. giving preference to local and/or smaller suppliers
and those that meet minimum ethical, human rights and employment
standards);
4. ensuring that fair contract terms are applied and respected.

Table B.1 — Sustainable procurement checklist

Categories of issues for consideration in sustainable procurement Have the


issues been
considered?
(Y/N)
Corporate commitment – sustainable procurement
Is there organization-wide consensus on the approach to sustainable
procurement for event management projects?
Is a senior procurement director or manager responsible for the
implementation of sustainable procurement and have adequate resources
been allocated?

Policy for procurement and strategic planning


Has a procurement policy been def ned, documented and communicated?
Has a sustainable purchasing strategy been def ned and adopted, and is it
widely understood?
Is the role of the procurement function def ned in terms of achieving
organizational sustainability targets?
Are policies/codes of conduct/guidelines/minimum standards used to
demonstrate what the organization will/will not buy?
Are the most important categories of procurement identi f ed for
targeted action?
Are future procurements mapped?
Is the purchase core to the business?
Are there a limited number of suppliers?
Will the company suffer negative PR in the event of supply failure?
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70

Table B.1 — Sustainable procurement checklist (cont’d)


Categories of issues for consideration in sustainable procurement Have the
issues been
considered?
(Y/N)
Does the scope of the sustainable procurement strategy cover…
economic, social, health and safety, environmental and natural resource issues?

Do the sustainability objectives embedded within procurement…


promote positive sustainability outcomes as well as managing negative
impacts?
demonstrate concern for, and effort to, maintain and build reputation?
assist in incorporating sustainability values into supplier strategies and develop
performance measures for mutual benef ts (e.g. innovation, cost reduction,
quality enhancement, increased f exibility, compliance and proactive risk
management)?
contribute to national policies by stimulating markets for sustainable goods?
take the form of a tender speci f cation and, where necessary, additional
guidance?

Are targets/KPIs…
linked to the overall organizational sustainability objectives?
compliant with legislation as a minimum, and industry best practice standards?
related to a def ned outcome?
driving real improvements through the supply chain?
transparent?
where applicable, based on sound science?
SMART (speci f c, measurable, achievable, realistic, time-bound)?

Assessment criteria
Has a weighting/scoring system for supplier/tender evaluation been
developed?
Have life cycle impacts and whole life costs issues been considered?
Has the environmental purchasing hierarchy (see below) been applied?
Is the supplier prepared to sign up to a supplier code of conduct?
Does the supplier meet industry best practice standards?
Does the supplier represent best value?
Are the contract terms fair?
Putting sustainable development into practice – key management issues

71

Table B.1 — Sustainable procurement checklist (cont’d)

Categories of issues for consideration in sustainable procurement Have the


issues been
considered?
(Y/N)
Have best practice tools/techniques, etc. been incorporated, such as…
a supplier code of conduct? If so, does the scope of this code include:
• child labour?
• forced labour?
• health and safety?
• freedom of association and collective bargaining?
• discrimination?
• disciplinary practices/harsh and inhumane treatment?
• working hours?
• remuneration and bene f ts?
• personal management systems?
• employment security?
• community relations?
• environmental issues?
policies/codes of conduct/guidelines/minimum standards?
the environmental purchasing hierarchy – “rethink, eliminate, reduce, reuse,
recycle, dispose”?
checklists and speci f cations?
lists of pre-approved materials?
involvement of sustainability personnel in contract negotiations?
supplier development programmes to set requirements, form action plans,
provide support and monitor progress through performance reviews?
supplier audits and/or frequent supplier visits?
integration with existing procurement tools such as total life costing, supplier
performance classi f cation and ratings, quality procedures, terms and
conditions and Total Quality Management?
contractual requirements to provide details on sustainability standards and
contract “milestones”?
pilot programmes to try out new sustainable products/services?
working with R&D to solve sustainability problems?
supplier training and seminars/presentations, etc.?
inclusion of “eco labels” or “eco label” criteria in speci f cations?
A Handbook for Sustainable Development
72

Table B.1 — Sustainable procurement checklist (cont’d)


Categories of issues for consideration in sustainable procurement Have the
issues been
considered?
(Y/N)
Dialogue with suppliers
Is a combination of the “command and control” and “partnership” supplier
relationship approach used?
Do contractual terms with suppliers ref ect equal capacities to contract?
Are communications with suppliers non-adversarial?
Are expectations and roles within the communication clear?
Have the suppliers been consulted regarding the communication?
Are positive communication actions rewarded?
Is dialogue between the organization and the supplier bases set up at an early
stage?
Are suppliers encouraged to be innovative with sustainable product options?
Are variants to speci f cations considered in order to encourage performance
improvements beyond functional speci f cation?
Are both “winning” and “losing” suppliers constructively debriefed?
Are new bidders introduced for each invitation to tender (ITT) to facilitate
competition?
Has the organization, where necessary, engaged with trade/industry bodies to
assist with def ning speci f cations, best practice, etc.?

Has sustainability management been incorporated into the


procurement cycle stages, including:
def ning the service need: developing the programme or project brief?
developing the business case: appraising options and establishing value for
money?
def ning the procurement approach: specifying the requirements?
competitive procurement: inviting and evaluating bids and selecting the
supplier?
awarding and implementing the contract: preparing for delivery?
managing the contract: maintaining performance, value for money and
fairness?
reviewing the key decision points in the procurement cycle?
Putting sustainable development into practice – key management issues

73

Table B.1 — Sustainable procurement checklist (cont’d)

Categories of issues for consideration in sustainable procurement Have the


issues been
considered?
(Y/N)
Monitoring and reporting
Is the strategy implementation monitored through appropriate performance
measures, KPIs and benchmarks?
Is information collected during the monitoring process assessed, reported and
acted upon?
Are the lessons learned documented and possible improvements identi f ed for
future activities?

When should sustainable procurement issues be considered?

Sustainability issues should be considered at the earliest stage of the


procurement process by building relevant criteria into product/service
speci f cations. This allows options to be selected that meet the speci f cation,
but which also provide the best value for money. This approach avoids
potential con f icts between sustainability and economic issues arising later in
the procurement process.

What does sustainable procurement involve?

Key steps that should be undertaken are:

a) establishing a policy for sustainable procurement;


b) producing tender speci f cations that incorporate sustainability
performance criteria;
c) engaging in dialogue with suppliers/potential suppliers; and
d) assessing tender submissions and evaluating sustainability performance
throughout the procurement cycle.

Sustainable procurement policy and strategic planning

A procurement policy should be established and documented that is aligned


with the sustainability policy for the event as a whole and which elaborates
on (in the context of sustainable procurement) the issues, objectives, KPIs
and targets established for the event as a whole. The sustainable procure-
ment policy should:
A Handbook for Sustainable Development
74

a) de f ne the scope (i.e. extent) of sustainable procurement, e.g. economic,


social, environmental and natural resources; life cycle approach, key
event themes, etc.;
b) state the desired performance level, e.g. basic legal compliance or
extend to ‘beyond best practice’ including building environmental values
into supplier strategies;
c) de f ne the approach/criteria for assessing suppliers during tender
evaluation;
d) assess consistency and alignment of performance requirements for
suppliers with the organization’s expectations for itself.

Techniques for assessing and managing sustainability issues in


procurement

The following considerations should be taken into account in de f ning the


approach to assessing/managing suppliers and prospective suppliers.

a) The extent to which the supplier’s products/services are critical to the


purchasing organization.
b) The level of expenditure on suppliers in order to establish the degree of
in f uence that can be exerted on suppliers.
c) The key social, economic, environmental and natural resources issues
and associated risks relating to the product/service.
d) Separating suppliers by industry, service or product type in order to
develop appropriate means of communicating/engaging with them.

The organization should select from appropriate approaches, tools and


techniques to assess and manage sustainable procurement. These include:

1 . weighting/scoring systems – quantitative/qualitative ways of assessing the


merits of proposed solutions to be applied to the KPIs;
2. life cycle assessment and whole life costing – the “true” impacts of
products and/or services based on a “cradle-to-grave” approach, i.e. a
holistic approach which assesses the environmental aspects and potential
impacts associated with the manufacture, use and disposal of a product;
3. the environmental purchasing hierarchy – “rethink, eliminate, reduce,
reuse, recycle, dispose”, an approach to minimizing natural resource
impacts which is similar to the waste management hierarchy;
4. a supplier code of conduct – can be employed by the contracting
organization in order to ensure that its suppliers conform with the
social and ethical elements of sustainable procurement, as well as the
environmental aspects;
Putting sustainable development into practice – key management issues

75

5. industry best practice – standards for sustainability management for


speci f c industry sectors/areas def ned by the industry and representing
the industry’s assessment of appropriate performance levels; and
6. best value – using the UK Government def nition: the optimum
combination of whole life costs and bene f ts to meet the customer’s
requirements. This approach enables sustainability and quality to be
taken into account when service delivery options are being considered.

Developing a dialogue with suppliers

There are two broad approaches that can be used to establish sustainability
goals for suppliers: the “command and control” approach and the
“partnership” approach.

“Command and control” approach : this approach involves close management


and regulation of suppliers and includes the use of a contract that includes
standards and checklists which organizations may insist their suppliers must
comply with. Although it can be effective, it can also be in f exible by making
suppliers react to precise requirements rather than proactively engaging
with the objectives for sustainability. This sometimes leads to a “tick box”
approach whereby the supplier takes the minimum measures to meet the
performance standard required.

“Partnership” approach : this approach involves relationship building with


the supplier and uses in f uence, information and education with the aim of
ensuring that both the supplier and the organization are working towards
similar goals. In the long term, the “partnership” approach tends to be more
effective than “command and control”; however, it requires more effort
and investment. Where particular products and services are required on a
routine basis, it might be most appropriate to invest in the “partnership”
approach.

It is likely that organizations will adopt a combination of the above techniques.

A designated sustainable procurement champion should be responsible


for future procurement contracts and for developing early dialogues with
the suppliers, in order to anticipate implications associated with changes in
requirements, supply, legislation, etc. Rather than being too prescriptive,
contracting organizations should encourage suppliers to develop variants in
order to provide suppliers with opportunities to develop new, innovative
sustainable product/service options. This approach is also particularly useful
where the buyer lacks the necessary knowledge of the product/service to
provide a meaningful speci f cation.
A Handbook for Sustainable Development
76

Feedback should be given to suppliers at the end of the procurement


cycle to inform the review process. New bidders should also be sought
at the invitation to tender (ITT) stage to promote supplier competition.
Where the contracting organization is constrained in terms of entering into
dialogue with suppliers, or lacks the competence to provide a speci f cation
to suppliers, the organization should approach representative trade bodies/
organizations for assistance.

Assessment of tender submissions

Tender submissions should be evaluated using the criteria and assessment


techniques outlined previously. Once the preferred supplier has been selected,
the contracting organization should incorporate the sustainability performance
information provided in the supplier’s tender submissions into the condi-
tions of contract. Suff cient detail should be included to be able to determine
instances of non-compliance (i.e. where suppliers have failed to achieve
expected performance) and to inform subsequent performance reviews.

Sustainable procurement – monitoring and reporting

The strategy implementation should be monitored throughout the implemen-


tation stage using appropriate KPIs and benchmarks. Information collected
during the monitoring process should then be assessed and reported upon.
The “lessons learned” should be documented and incorporated into the
review process to identify improvements for future activities.

4. Product development – a case study


Case study 3 provides a good example of a thorough and integrated approach to

SD and draws together many of the treads in this manual.

Case study 3 — The Boots Group plc


A journey towards sustainable retail products
The Boots Group plc.

Summary

This case study examines the creation of a sustainable product development


strategy at Boots and how it has been embedded into everyday business
operations as “part of the way we do things”.
Putting sustainable development into practice – key management issues

77

Boots is a major product developer, manufacturer and retailer with a large


and varied portfolio of products. The approaches we have taken enables the
company to keep abreast of changes driven by the challenge of sustainable
development and harness these to drive innovation in consumer products
within a complex business.

The principles and methods used to embed sustainable development into


product development described here can apply to any manufacturing or
retail organization large or small.

Sustainable products and services

The way society has addressed environmental, social and ethical issues has
evolved considerably over the last twenty years. From an early focus on the
mitigation of “end of pipe” impacts, thinking has now moved on to a more
holistic and sustainable approach closely linked to the concept of social
responsibility. Understanding the complex systems that determine our effect
on the social and natural environment is now seen as critical in meeting the
challenges facing society.

For product developers, manufacturers and retailers this evolution has


been mirrored by a move from management of single issues such as the
environmental impact of packaging waste or product safety into the arena of
whole product impact and sustainable product development. Entire product
lifespans are now considered using cradle-to-cradle thinking.

This is recognised in the UK Government Sustainable Development Strategy:

We need a major shift to deliver new products and services with lower
environmental impacts across their life cycle, while at the same time boosting
competitiveness. And we need to build on people’s growing awareness of
social and environmental concerns, and the importance of their roles as
citizens and consumers.

(Source: Securing the Future — Delivering UK


Sustainable Development Strategy, The Stationery Off ce, 2 005)

However the interplay between the various factors in f uencing sustainable


development is complex and potential solutions are only beginning to be
understood. New tools and methods are required to understand this in the
context of products and services and unlock its potential for innovation.
A Handbook for Sustainable Development
78

Product sustainability – Boots integrated approach

The challenge of sustainable product development

Our ambition for product sustainability is:

To be a leading developer and retailer of sustainable health and beauty


products and services, protecting and enhancing trust in the Boots brand and
creating opportunities for innovative product and retailing ideas.

We believe that improving product sustainability should be seen as an


opportunity to innovate new products, build brand trust and minimise
risk rather than act as a brake on product development. The best way to
achieve this is by full integration of sustainable development into product
development. This way it becomes a natural part of the process rather than
an optional extra.

However adopting a sustainable development strategy for products in a


major manufacturer and retailer presents several challenges.

• The approach has to be applicable across a wide range of different


product types. Boots have approximately 30,000 product lines and up to
1 0% are changed annually.
• It has to be f exible to cope with the rapid turnover of products.
• It has to cope with the three routes by which products are introduced
at Boots (own manufacture, third party supply of Boots brands,
proprietary brand).
• It has to be embraced and understood by multi-disciplinary teams
working on product development.
• It has to raise awareness of complex sustainable development issues
whilst recognising that not everyone in the process is a sustainability
expert.
• It has to provide guidance on where and how improvements can be
made.
• It must act as a stimulus for sustainable innovation.
• It must be commercially successful.

Boots solution has been to develop an integrated approach as a key element


of our Corporate Social Responsibility Strategy. Our approach was grounded
on existing systems yet introduced new tools and processes to raise
awareness, facilitate improvements and drive innovation in an incremental
way. The methods and tools developed continue to be ref ned as we move
further along the path towards sustainability.
Putting sustainable development into practice – key management issues

79

Embedding a sustainable culture

When Boots CSR strategy was launched in 2004, the f rst task was to embed
the principle of sustainable development into all areas of the business. Our
analysis revealed f ve potential barriers to the integration of sustainable
development into business processes. Strategies were developed to
overcome these barriers. These are detailed below:

POTENTIAL BARRIER SOLUTION


Awareness of issues – “what is sustainability” Dedicated expert team support and
advocacy.

Development of competencies – “not my Development of tools and processes


job”. “It’s too diff cult”

Scepticism – “this isn’t commercial”. “It’s a Business case


passing fad” Demonstration projects

Perceived cost impacts – “It’s going to cost Demonstration projects


me money”

Organisational culture – “Not the way the Link to brand values


business operates”

The strategies and solutions we introduced pertaining to product


development are detailed below.

Dedicated team support

As part of the introduction of Boots CSR strategy a dedicated Environmental


section in the Quality & CSR (Q&CSR) team was set up bringing together
expertise in the areas of;

• Product sustainability
• Biodiversity
• Supply chain
• Chemicals
• Waste & Logistics
• Healthy Living

This team acts as a central point of advice and drives the adoption of our
CSR strategy. Its functions include:
A Handbook for Sustainable Development
80

• Developing the business case for sustainable product development.


• Identifying opportunities for new business models and cross-functional
working.
• Managing pilot or demonstration projects to drive innovation in
sustainable product development.
• Acting as a centre of expertise and advice for the whole business, raising
awareness and providing support at all levels.

Building the business case and linking to Boots brand values

Developing the business case for product sustainability linked to business


strategy and values is vital in order to gain acceptance and embed sustainable
thinking in the organisation. For Boots we have built the business case
around three parameters:

1. Improving Eff ciency


2. Developing our Product Offer
3. Stakeholder Management.

Sustainable Development – Business Benefits

Stakeholder management
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?

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?

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?

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? ? ?? ? ?

E fficiency Our O ffer


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??
? ? ?

?
? ? ?

? ? ?? ?? ? ? ? ?? ? ? ? ? ? ?? ? ?? ??
?

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? ? ? ? ?

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?
Putting sustainable development into practice – key management issues

81

Boots as a brand has for a long time enjoyed a high level of trust by
consumers. Research by organisations such as the Future Foundation has
rated Boots highly in terms of trust and social responsibility. By successfully
demonstrating that the environmental and social aspects of products have
been addressed reinforces levels of consumer trust. Sustainable product
development is therefore able to enhance Boots’ key brand value.

This can be summarized as:

Developing more
sustainable products
can…

Reduce risks

Increase Brand Trust

Stimulate innovation

Improve efficiency

…whilst reducing
environmental impact and
improving social wel fare

Embedding the principles

Boots strategy on product sustainability is based on the principle of “cradle


to cradle” thinking across the whole product lifecycle incorporating all
aspects of sustainable development. In order to illustrate this in a simple and
engaging way we have developed the “Product Journey” approach. This is
employed both internally and externally to increase understanding of the
principles.
A Handbook for Sustainable Development
82

The product journey

Concept
Materials Production

Distribution

Use Retail
Disposal

At each stage of the journey all impacts including elements such as


biodiversity, energy, resource use, waste, and ethics are considered.

This ensures, for example in the case of chemical policy that this concept is
applied to the total product including ingredients and packaging:

“Product Recipe” – Typical Shampoo


Products Packaging
water cap
active polymer
stabiliser pigment
stabiliser
preservative water plasticiser
water
detergent
foam booster
active thickener
stabiliser preservative
preservative conditioner
water colour
fragrance
polymer
emulsifier stabiliser
preservative
active carrier
water
active
bottle
polymer
stabiliser pigment
preservative stabiliser
plasticiser
top notes
middle notes
base notes
fixative polymer
stabiliser
carrier Lavender pigment
stabiliser
& Rosemary plasticiser
labels
label material
adhesive pigment
SHAMPOO inks stabiliser
FOR MATURE HAIR lacquer carrier

resin
carrier
stabiliser
Putting sustainable development into practice – key management issues

83

For products manufactured by Boots, the company has control of the entire
supply chain. This provides a unique opportunity to use the product journey
concept to drive product sustainability and act as an exemplar to other
supply chains.

Developing tools and processes

The company has formal processes for all new product development and
introduction. To integrate sustainable development criteria consistently
across our product range new and revised tools and processes were
introduced.

Essentially this covered two main areas of activity.

Risk & Sustainability Assessment – A review of the new product


introduction process led to the creation of a set of tools to measure
and manage risks. These were developed with the speci f c intention of
integrating sustainable development criteria into the risk management
process. Their application is outlined below:

Sustainability Processes in New Product Development

Sustainable Product
Assessment

Risk Risk
Assessment Assessment

Needs Project Product &


Design Production
Conceptualisation Start Packaging
Development

Product Bank
Technology R&D

Banked Packaging Modules

A computerised Risk Assessment Model (RAM) replaced a paper based


assessment form. This model is f rst used right at the outset of a project to
create a risk prof le and an action plan for managing risks is identi f ed. As
the project progresses and actions are addressed the model revises the risk
level accordingly. Therefore the effect of mitigation can be identi f ed and the
failure rate of projects reduced.
A Handbook for Sustainable Development
84

A key component of the RAM is product sustainability. An initial f lter


identi f es the current state of engagement with sustainability and directs the
user to internal sources of expertise. If appropriate the user is also directed
to a second level detailed Sustainable Product Assessment tool.

This was developed within Boots and peer reviewed by Forum for the
Future to ensure the choice of criteria met the latest thinking on sustainable
development.

Sustainable Product Assessment – pro f le matrix (partial)

The Sustainable Product Assessment tool (SPA) covers 1 8 different product


attributes and is based on the principle of Sustainable Value, recognising
that products have the potential to have a positive sustainability benef t as
well as negative impacts. Completing the assessment provides the user with
the results as a sustainability pro f le. This is in three sections, identifying
opportunities as well as risks;

a) A sustainability matrix classi f es results by life cycle stage and impact


area. In each cell the results are in the form of improvement suggestions
and are coded: red = priority action, amber = desirable, green =
added sustainability value, providing an opportunity for marketing the
product on its sustainability credentials.
Putting sustainable development into practice – key management issues

85

b) A sustainability score that can be used for benchmarking.


c) An impact graph showing where in the product life cycle the major
impacts occur.

The tool has been designed so that a non-expert can generate a prof le
quickly. By providing advice as well as benchmarking the SPA has an
educational value by raising awareness across the business. It is intended to
use the sustainability scores to develop performance measures in product
development.

If a greater level of detail is required conventional life cycle assessment


techniques are available.

Product Bank

Product Bank is a dedicated team within the New Product Development &
Introduction department, and has two main roles:

• To spot and convert appropriate technology insights into products that


Boots can sell.
• To improve development eff ciency and effectiveness, ensuring that
products meet the company’s core quality standards.

Technology insights, which include trends information, innovation and


new supply sources, are assessed on market need, business value and
management of risk.

The system acts as a funnel to re f ne and adapt technologies and consists of


four levels:

Level 1 – Technology Research – covers the generation of ideas to prove the


principle behind a new solution;

Level 2– Technology Development – the marketability of the idea is


addressed;

Level 3 – The Product Bank Itself – covers the manufacturability of the idea;

– New Product Development – the idea is developed into the retail


Level 4
product;
A Handbook for Sustainable Development
86

Product Bank

LEVEL 1 Environmental issues

3–5 Years
TECHNOLOGY Sustainable Products
RESEARCH
Develop idea to
prove principle
Inclusive Design

Supply Chain
< 1 8m – 3 Years

LEVEL 2
TECHNOLOGY
DEVELOPMENT
Develop idea to New Formats/Packs
prove marketability

Visual E ffects/Graphics
LEVEL 3
1 2m – 3 Years

PRODUCT BANK
– Develop idea SMART Packaging
into product
module to prove
manufacturability
Convenience

LEVEL 4
Immediate

NPD – Deliver
idea into retail ?
? ? ? ? ? ??? ? ? ? ? ???? ?? ???? ? ? ? ?? ? ??
? ? ? ?

? ? ???? ? ? ? ?? ? ? ? ??? ? ? ? ? ??? ? ? ? ???


? ? ? ? ? ? ? ?

?
to prove ? ? ? ?

? ? ? ? ? ? ? ? ?? ? ? ? ?? ?? ? ? ?? ?? ?
? ? ? ?

? ? ?
saleability
? ? ?

Sustainability issues are addressed at each stage of the four stage Product
Bank process, with Boots recognising the need for solutions to meet
society’s needs, aligned to the company’s CSR Strategy.

The development of the Product Bank itself, a knowledge management


system, is of particular signi f cance acting as a gateway for sustainable
innovation and helping to replicate innovations in other product areas.

The investment in Product Bank is predicated on the belief that sustainability


can act as a key driver for innovation within the business – helping to
in f uence the creativity of new products, as well as the way the products are
packaged and distributed.

Demonstration projects

A number of demonstration projects have been instigated to demonstrate


that sustainable development works commercially as well as being strategi-
cally successful. These have been developed on the premise that they should
deliver a cost benef t as well as social and environmental benef ts. The exam-
ple case study (Appendix 3) demonstrates how these projects were able
to deliver both these criteria. The projects instigated by the Environmental
team within the Q&CSR group were seen as vital to embedding the concept
of sustainability into the business. The projects have also stimulated cross-
departmental liaison creating potential new business opportunities.
Putting sustainable development into practice – key management issues

87

Innovation
As part of our strategy for sustainable product development we recognize
that innovation is best achieved through partnership, working with experts
in a broad range of f elds. We have therefore set up links with Universities
such as Loughborough, Sheff eld Hallam and Cran f eld as well as Forum For
the Future, and Government organisations such as WRAP.

Our partnership with Loughborough University illustrates the symbiotic


approach that benef ts both Boots and academic institutions. The collabora-
tion started with a project whereby Boots provided existing product briefs
and samples to second year Design & Technology degree students who then
redesigned the products using eco-design principles. This project, now in its
fourth year, has benef ts for both parties: for the students in understanding
the commercial application of sustainable design through working on “live”
products, whilst Boots gains a source of fresh thinking and product innova-
tion. The partnership has now grown to include sustainable design research
projects including a DEFRA funded project on Ref llable Packaging Systems.

The results of these projects feed directly into our product development
strategies.

External networks
A wider network of stakeholders with an interest in product sustainability
has also been developed. This includes governmental organisations, NGOs
and interest groups such as WWF, Forum for the Future, and INCPEN,
academia, trade associations and suppliers. Because of our leading edge
position on product sustainability we are increasingly being consulted
on building wider sustainable development networks. This included, for
example, participation in the development of The Sigma Guidelines on
Integrating Sustainable Development in Organisations and latterly BS 8900,
Guidance for Managing Sustainable Development .

Results and progress


The processes described above have been in place for nearly one year and
already bene f ts in the area of product development are being realised.
These include:

• Improved risk management in the business.


• New and improved products to market.
• Greater awareness across the business of sustainable development
issues and an understanding of how Boots can make improvements.
A Handbook for Sustainable Development
88

• Sustainable development is now included in brand and product


development plans.
• New product development underway with sustainable development as a
key driver.
• Sustainable development is being used as a stimulus for innovation.

Other wider bene f ts from Boots’ approach to sustainable development


include:

• Organisational learning. Sustainable development requires the adoption


of a holistic approach requiring a level of systems thinking. This is having
wider benef ts within the business enabling different product categories
and functions to work together identifying synergies and new product
and marketing models. One example is the employment of sustainable
packaging design techniques in the area of store display units. This
resulted in improved recyclability, diverting waste from land f ll, and a
saving of around £56,000 pa in waste disposal costs.
• Improved consumer awareness of environmental aspects through product
and packaging labelling to facilitate behavioural change . As part of the
project to include recycled materials in packaging consumer labelling
was considered. After testing various options a simple on pack
message was adopted. This is intended to promote expertise and
con f dence in this area and reinforce brand trust. On-shelf promotional
material has also been developed. Boots are also sponsoring a PhD at
Sheff eld Hallam University that will investigate the communication of
sustainability through product use.
• Raising supplier awareness . Some of the demonstration projects carried
out within Boots are being rolled out to third party suppliers of branded
products. For example, as a result of our work on the use of recycled
PET in packaging discussions are being held with a number of product
suppliers.
• Building knowledge by working with stakeholders . Boots recognises that
progressing along the path towards sustainable development can only be
achieved by collaboration with a wide range of stakeholders and interest
groups. We work with a number of interest groups on sustainable
development projects. One example is through the Forum for the
Future Business programme where we have developed links with other
product manufacturers to share knowledge on product sustainability.
Putting sustainable development into practice – key management issues

89

• Developing future skills .


Boots’ partnership with educational
establishments such as Loughborough University and through the Design
Council is helping raise awareness of sustainability in future product
developers and designers.
• Increased routes to investment . Increasingly investors are embracing
sustainable development and social responsibility criteria when making
investment decisions. Presenting the Boots approach to product
sustainability has produced a positive response from our investors.
Boots has seen greater inward investment from green funds as its CSR
rating has improved.

The future

It is important to recognize that sustainable development is a journey of


continual improvement. The processes and tools we have developed are
under continual review and ref nement. Some of our priorities for the
immediate future include:

• Developing product sustainability benchmarking.


• Extending and adapting the risk assessment model for use in other
business functions.
• Building sustainable development criteria into brand and departmental
key performance indicators.
• Developing strategies for consumer information on sustainable
development issues.
• Understanding the climate change impacts of products.

In short Boots views sustainable development as a Holy Grail – given the


scale of the challenge, the complexity of our business and the pace of
change. But we know that it is a key differential for Boots, that we are
leading the way on many of the issues, and it is no less than what is expected
of us by our customers and wider society.

Other examples of sustainable product development


Here are some examples of award winners who have particularly interesting

ways of addressing energy and environmental issues.


A Handbook for Sustainable Development
90

Example 16 — Two of the Business in the


Community Awards 2007 winners
Serco Leisure – Energy effciency in leisure

Man Group International Climate Change Award in association with


The Climate Group
By improving the environmental management of its centres and encouraging
an entrepreneurial staff culture, Serco Leisure saved 2, 400 tonnes of CO 2 and
reduced costs by £750, 000 during 2006.

Processes
Serco Leisure is part of Serco Group and manages 64 leisure centres on
behalf of local authority clients and trusts. Energy is Serco Leisure’s second
largest cost, and with rapidly increasing energy prices resulting in an
anticipated £2 million of additional costs, in 2006, its board set a target of a
5% reduction in energy consumption.

Serco Leisure mainly focused on improving the management of its energy


use including:

• Reducing air and pool water temperatures where possible


• Reducing boiler temperatures
• Regularly monitoring energy use
• Implementing management controls and improved reporting and analysis
• Developing a ‘colour coded lighting strategy’ specifying light usage in
accordance with planned activities
• Insulating buildings and plant

The company also introduced new energy eff ciency measures including
Combined Heat and Power Units, swimming pool f lter insulation, and ‘liquid
covers’ to conserve water temperature in pools.

To engage staff in reducing energy use, Serco Leisure applied its


entrepreneurial culture, through a staff suggestion scheme – ‘Big Ideas’ –
which resulted in the use of bubble wrap to insulate swimming pool f lters. It
also created competition between sites through league tables and incentive
schemes. Finally, the importance of energy saving was communicated at site
level through e-mails, workshops, staff meetings and noticeboards.
Putting sustainable development into practice – key management issues

91

Serco Leisure has also encouraged customers to keep doors closed, not
to leave showers and taps running and displayed Carbon Trust posters and
stickers throughout its centres.

To further reduce its climate impacts, Serco Leisure is looking into wind
turbines, bore hole cooling, and ice rink thermal recapture. It is also working
towards transferring its initiatives across the businesses, including its prison
and hospital services and has since been appointed by local authorities to
review their energy management systems.

Impact

• Savings of approximately 2,400 tonnes of CO 2 and £750,000 during


2006
• Utilities usage reduction of 1 9.8%
• Savings on electricity costs from CHP units equates to £50K per annum
per unit
• Insulating swimming pool f lters makes calculated savings of up to
696,000kw/£20,000 per f lter, per annum

(Source: http://www. bitc. org. uk/resources/case_studies/afe_1 401 _serco. html)

Camelot Group plc - environmental leadership

EDF Energy Environmental Leadership Award, in association with the


Institute of Environmental Management and Assessment

Focusing on the environmental impact of its products and behaviour change


within the organisation, Camelot Group has cut carbon emissions by 2 9% in just
one year, while signi f cantly reducing resource costs for the company.

Process

Camelot operates the UK National Lottery, with a duty to maximise returns


to good causes. It has taken an international lead in its sector on social and
environmental responsibility, chairing the World Lottery Association Working
Group on Corporate Responsibility and becoming the world’s f rst major
lottery operator to go carbon neutral.

As the environmental impact of its off ces is limited, Camelot has worked
to reduce the impact of its products. It uses recycled paper to print lottery
A Handbook for Sustainable Development
92

tickets at terminals, while play slips and Scratchcards are produced with
paper from sustainable managed forests. It has also introduced interactive
gaming platforms and has developed National Lottery Fast Pay in partnership
with Tesco, allowing lottery tickets to be printed on till receipts. These
innovations have signi f cantly reduced the amount of paper used.

The company is also tackling the impact of its own operations, focusing
on the behaviour of its own employees. It has an ‘Above and Beyond’
programme which rewards employees with points that can be redeemed for
an item of their choice, for efforts to reduce the company’s environmental
impact. In addition it has set up a Green Team – a group of 20 volunteers
from across the company – whose aim is to raise environmental awareness
among colleagues.

Camelot has also cut the emissions of its operations, switching to green
electricity at its main off ces, moving to a diesel car f eet and reducing gas
and electricity use at its main sites. As a result, CO 2 emissions have been
reduced within a year by 29%, almost double the target of 1 5%.

Impact

• Using recycled paper in tickets and play slips has saved 745,975 kgs in
CO 2 in associated production emissions and diverted an estimated 80
tonnes of waste paper from land f ll every month
• National Lottery Fast Pay has reduced play slip use, saving 70,085 kgs of
paper and 57,750 kgs of CO 2 from paper production
• The Green Team helped reduce off ce paper consumption at the
Watford head off ce by 35%
• Switching to green electricity, moving the car f eet to diesel and reducing
energy and gas consumption have all resulted in a 29% reduction of
carbon emissions.

(Source: http://www. bitc. org. uk/resources/


case_studies/camelot_group_plc_. html)

5. Process engineering
Management should also consider the range of processes in an organization and

how these could be made more sustainable. See Example 1 7 for one of many

examples of how this can be achieved.


Putting sustainable development into practice – key management issues
93

Example 17 — A further Business in the


Community Awards 2007 winner
Prospero Recruitment – Sustainable development

Eco-eff ciency Award

By switching to electronic f ling and taking simple eco-eff ciency steps,


Prospero Recruitment has differentiated itself from competitors and reduced
waste by 90%.

Processes

Prospero Recruitment Ltd recruit staff for the audio visual, IT, games and
education sectors. The company’s aim is to create more services while using
fewer resources and creating less waste and pollution. Its eco-eff ciency
policy is linked to the company’s core communications and is the main
factor on which Prospero differentiates itself from its competitors.

Through the launch of the company’s CSR policy a number of eco-eff ciency
initiatives have been undertaken. Prospero Recruitment has moved away
from a paper based recruitment system to electronic f les. Recruitment
consultants are encouraged to communicate to clients via email and all
have attended courses on communication and marketing to enable them to
operate and comply with the company’s eco-eff cient policy.

Prospero has also introduced a number of simple measures to cut waste and
energy use, including:

• switching off monitors, computers, off ce equipment when not in use


• using energy eff cient light bulbs
• using an energy eff cient magnet in the off ce fridge which decreases the
energy use by 1 0%
• turning the heating down by 1 degree
• using ‘save a f ush’ bags in toilets
• recycling of off ce consumables, furniture and computer equipment

Employees are incentivised to support the eco-eff ciency policy in a scheme


to swap working hours for time dedicated to sustainable activities.

Prospero also bases purchasing decisions on suppliers’ environmental


performance and has imposed a sustainable sourcing policy, using only local,
fair trade and recycled product suppliers.
A Handbook for Sustainable Development
94

Impact

• £2,898 saved from reduced wastage and raw material use in 2006/07
• Reduced environmental impact of paper use by up to 93%
• Reduced waste by 90% through recycling
• Reduced energy consumption by 40%
• Reduced natural resource use by 35%
• Differentiated itself from competitors on grounds of sustainability
• Strengthen[ed] relationships with current clients and established new
relationships as a result of eco-eff ciency initiatives
• Employee involvement in social and community projects has created
network opportunities and new business leads

(Source: http://www. bitc. org. uk/resources/


case_studies/afe1 493_prospero. html)

Conclusion
Rather than considering speci fc questions, an organization may wish to
consider where it sits in relation to the criteria set out in Table 2.

Table 2 — Some indicators of SD practise graded


from initial stages up to fuller commitment
Some sustainable Embedded practice Advanced practice Commitment
practice to sustainable
development
practice

You are aware You avoid irreversible You f nd ways Commitment to ‘big
of and respect damage or change, of encouraging issues’ e.g. energy
environmental and or mitigate where biodiversity reduction, carbon
other limits possible neutrality, food miles
and climate change

You are aware of You seek to control You have a values-led Your approach
the impacts of your some resource- resources planning in planning and
actions intensive activities process operations is to seek to
prevent problems from
occurring, rather than
waiting for problems to
occur and then trying
to solve them
Putting sustainable development into practice – key management issues

95

Table 2 — Some indicators of SD practise graded from


initial stages up to fuller commitment (cont’d)

Some sustainable Embedded practice Advanced practice Commitment


practice to sustainable
development
practice

You measure some You publish an You are transparent You reinvest in the
resource impacts environmental impact about how you treat local community and
statement – as your responsibilities, ecosystems
appropriate environmental and
community

Your waste and You create resources You balance your You lighten your
pollution is reduced equal to or exceeding responsibilities to all footprint and seek
to a minimum, the resources stakeholders to their ways of increasing
recycling where consumed satisfaction resilience and future
possible capacity

Of course, the matrix could be extended to include a wide range of key manage-

ment issues. The concept of a maturity matrix is explored more in Chapter 7.

References
Investors in People UK (undated) Health and Wellbeing at Work Project, Guidance
for Assessors: Standard/Level 1, Accompanies Version 9 (Extended Pilot Final
Draft) . Available at http: //www. investorsinpeople. co. uk

ISO 9000 series, Quality management systems , Geneva: International

Organization for Standardization

ISO 1 4040,Environmental management — Life cycle assessment — Principles and


framework , Geneva: International Organization for Standardization

ISO 1 4044,Environmental management — Life cycle assessment — Requirements


and guidelines , Geneva: International Organization for Standardization

ISO/TC 1 76/SC 2 (2004) ISO 9000 Introduction and Support Package: Guidance on
the Concept and Use of the Process Approach for Management Systems . Available

at http: //www. iso. org/tc1 76/sc2

ISO/TR 1 4047, Environmental management — Life cycle impact assessment —


Examples of application of ISO 14042 , Geneva: International Organization for

Standardization

ISO/TR 1 4049, Environmental management — Life cycle assessment — Examples


of application of ISO 14041 to goal and scope defnition and inventory analysis ,

Geneva: International Organization for Standardization


A Handbook for Sustainable Development
96

ISO/TS 1 4048, Environmental management — Life cycle assessment — Data


documentation format , Geneva: International Organization for Standardization

f
The Stationery Of ce (TSO) , Securing the Future — Delivering UK Sustainable
Development Strategy , N orwich: 2005 .
97

Chapter 7: Building trust and confdence

Review and evaluation


As with all aspects of the organization’s development, it is necessary to

maintain reliable information and to review progress. There is nothing unusual

about measuring sustainable development; it is simply a case of relating

indicators directly to the outcomes decided at the beginning of the process

outlined in BS 8900.

The overall intention of the standard is to link indicators and measure-

ment throughout the entire culture of sustainable development back to the

desired outcomes.

The fundamental interest is how to move away from a reliance on external

verifcation and build up suffcient trust and confdence between organizations


and their stakeholder groups so that the need for veri f cation is reduced.

After all, veri f cation can be based on the assumption of mistrust. The aim of

the standard is to encourage engagement so that this assumption is reversed

and stakeholders can be involved in the decision making, and the review and

communication of results.

However, there are many veri fcation organizations involved in external


review and reporting. BS 8900 does not list these, but tries to indicate where

they may be useful and how their services might be applied in a coherent way

across the organization.

There are numerous tools for helping organizations to re fne their key
performance indicators, but it is not proposed to repeat those here. N ote: for

internal auditing, see ISO 1 901 1 for further guidance.


A Handbook for Sustainable Development
98

The Government has produced examples of sustainable development key

performance indicators for a wide range of subj ects, as shown in Table 3 .

Table 3 — Key performance indicators


Indicator Description

Greenhouse gas emissions

1 . Greenhouse gas emissions: Kyoto target and CO 2 emissions

2. Carbon dioxide emissions by CO 2 emissions from industry, domestic, transport sectors


end user: (excluding international aviation and shipping)

3. Aviation and shipping Greenhouse gases from UK-based international aviation and
emissions: shipping fuel bunkers

Electricity generation

4. Renewable energy: Renewable electricity generated as a percentage of total


electricity

5. Electricity generation: Electricity generated, CO 2 , NO x and SO 2 emissions by


electricity generators and GDP

Carbon dioxide and other emissions

6. Household energy use: Domestic CO2 emissions, domestic energy consumption and
household spending

7. Road transport: CO 2 , NO x , PM 1 0 emissions and Gross Domestic Product

8. Private cars: Private car CO2 emissions, car-kilometres and household


spending

9. Road freight: Heavy Goods Vehicle (HGV) CO 2 emissions, kilometres,


tonnes and Gross Domestic Product

1 0. Manufacturing sector: Manufacturing sector CO2 , NO x , SO 2 , PM 1 0 emissions and


output

1 1 . Service sector: Service sector CO2 , NO x emissions and output

1 2. Public sector: Public sector CO2 , NO x emissions and output

Resource use

1 3. Resource use: Domestic Material Consumption and Gross Domestic Product

1 4. Energy supply: UK indigenous energy production and gross inland energy


consumption
Building trust and confdence

99

Table 3 — Key performance indicators (cont’d)

Indicator Description

1 5. Water resource Total abstractions from non-tidal surface and ground water,
use: leakage losses and Gross Domestic Product

1 6. Domestic water Litres per person per day


consumption:

1 7. Water stress: (to be developed to monitor the impacts of water shortages)

Waste

1 8. Waste: Waste: (a) arisings by sector (b) arisings by disposal

1 9: Household waste per person: (a) Arisings (b) recycled or composted

Natural resources

2 0. Bird populations: Bird population indices (a) farmland birds (b) woodland birds
(c) coastal birds (d) wintering wetland birds

2 1 . Biodiversity conservation: (a) Priority species status (b) priority habitat status

2 2 . Agriculture sector: Fertiliser input, farmland bird population, ammonia and


methane emissions and output

2 3. Farming and environmental Land covered by environmental schemes


stewardship:

2 4. Land use: (contextual) Area covered by agriculture, woodland, water or river, urban
(contextual indicator)

2 5. Land recycling: (a) New dwellings built on previously developed land or


through conversions (b) all new development on previously
developed land

2 6. Dwelling density: Average density of new housing

2 7. Fish stocks: Sustainability of f sh stocks around the UK

2 8. Ecological impacts of air Area of sensitive UK habitats exceeding critical loads for
pollution: acidi f cation and eutrophication

2 9. Emissions of air pollutants: NH3 , NO x , PM 1 0 and SO 2 emissions and GDP

30. River quality: Rivers of good (a) biological (b) chemical quality

31 . Flooding: Number of prope[r]ties in areas at risk of f ooding

Contextual indicators

32 . Economic output Gross Domestic Product


(contextual) :
A Handbook for Sustainable Development
100

Table 3 — Key performance indicators (cont’d)


Indicator Description

33. Productivity (contextual) : UK output per worker

34. Investment (contextual) : (a) Total investment (b) social investment relative to GDP

35. Demography (contextual) : Population and population of working age (contextual indicator)

36. Households and dwellings Households, single person households and dwelling stock
(contextual) : (contextual indicator)

Society

37. Active community Informal and formal volunteering at least once a month in the
participation: last 1 2 months

38. Crime: Crime survey and recorded crime for (a) vehicles (b) domestic
burglary (c) robbery

39. Fear of crime: Fear of crime: (a) car theft (b) burglary (c) physical attack

Employment and poverty

40. Employment: People of working age in employment

41 . Workless households: Population living in workless households (a) children (b)


working age

42 . Economically inactive: Percentage of people of working age who are economically


inactive

43. Childhood poverty: Children in relative low-income households (a) before housing
costs (b) after housing costs

44. Young adults: 1 6–1 9 year-olds not in employment, education or training

45. Pensioner poverty: Pensioners in relative low-income households (a) before


housing costs (b) after housing costs

46. Pension provision: Proportion of working age people contributing to a non-state


pension in at least three years out of the last four

Education

47. Education: 1 9 year-olds with Level 2 quali f cations and above

48. Sustainable development (to be developed to monitor the impact of formal learning on
education: knowledge and awareness of sustainable development)
Building trust and confdence

1 01

Table 3 — Key performance indicators (cont’d)

Indicator Description

Health

49. Health inequality: (a) Infant mortality: differences between socio-economic


groups (b) life expectancy: differences in average life
expectancy between local authority areas

50. Healthy life expectancy: Healthy life expectancy (a) men and (b) women

51 . Mortality rates: Death rates from (a) circulatory disease and (b) cancer, below
75 years and for areas with the worst health and deprivation
indicators, and (c) suicides

52 . Smoking: Prevalence of smoking (a) all adults (b) ‘routine and manual’
socio-economic groups

53. Childhood obesity: Prevalence of obesity in 2–1 0 year-olds

54. Diet: Proportion of people consuming (a) f ve or more portions of


fruit and vegetables per day and (b) in low income households

Mobility and access

55. Mobility: (a) Number of trips per person by mode (b) distance travelled
per person per year by broad trip purpose

56. Getting to school: How children get to school

57. Accessibility: Access to key services

58. Road accidents: Number of people and children killed or seriously injured

Social justice/Environmental equality

59. Social justice: (social measures to be developed)

60. Environmental equality: Populations living in areas with, in relative terms, the least
favourable environmental conditions

61 . Air quality and health: (a) Annual levels of particles and ozone (b) days when air
pollution is moderate or higher

62 . Housing conditions: (a) Social sector homes (b) vulnerable households in the private
sector in homes below the decent homes standard

63. Households living in fuel Households living in fuel poverty containing (a) pensioners (b)
poverty: children (c) disabled/long-term sick

64. Homelessness: (a) Number of rough sleepers (b) number of households


in temporary accommodation (i) total (ii) households with
children
A Handbook for Sustainable Development
102

Table 3 — Key performance indicators (cont’d)


Indicator Description

65. Local environment quality: Assessment of local environmental quality

66. Satisfaction in local area: Percentage of households satis f ed with the quality of the places
in which they live (a) overall (b) in deprived areas

International

67. UK international assistance: Net Off cial Development Assistance (a) per cent of Gross
National Income (b) per capita

Wellbeing

68. Wellbeing: Wellbeing measures

(Source: http://www. sustainable-development.


gov. uk/progress/national/index. htm)

Evaluating sustainable development


The key to sustainable development is recognizing that it is a holistic concept
and therefore a range of measures is necessary to produce an overall, reliable
picture.
It is unlikely that one measure will deliver success in terms of monitoring
and review, and any quick fx should be regarded with some suspicion. The
approach taken in BS 8900 is to consider a range of threads based around key
issues, together, in the round, and to assess the level of maturity in each area.
Clearly, an organization will not have advanced to the same level in each of these
threads or elements. Rather, it will be more realistic to see the organization as
more developed in some areas and less so in others.

Development or ‘maturity’ matrix


The matrix provides the map or assessment tool to fnd where you are, to
indicate ways forward and to show what progress has been made. It is suggested
that this tool be used throughout the process to defne and redefne the user’s
sustainable development path. For any organization or, indeed, community
it will be necessary to populate the cells in a way that is relevant to the body
concerned. BS 8900 provides a model with a number of leads but it is not
intended as a template. The standard’s matrix does show the sort of gradations
envisaged and, perhaps most helpfully, the kind of criteria that provide markers
Building trust and confdence
103

or lines which, if passed, suggest progression and higher levels of ‘maturity’ and

engagement (see Table 4) .

Table 4 — Abstract from BS 8900:2006’s example


of a sustainable development maturity matrix
Principles and practice Characteristics of developing organizations

Minimum involvement Full engagement

Inclusivity Stakeholder
engagement

Integrity Key drivers

Leadership and
governance

Managing risk

Stewardship Sustainable
development
culture

Building capability

Management
issues, e.g.:
supply chain

Environmental
assessment

Transparency Review

Reporting
and building
con f dence

One worry about the term ‘maturity’ is that it can suggest that if you reach the

boxes in the right-hand column you have in some ways ‘made it’. This is not the

case. Sustainable development is a continuous, lifelong commitment and the

aim is not to win badges or prizes. The goalposts will also be continually moving

as technological progress pushes boundaries, scienti fc understanding causes


us to re-evaluate environmental limits or popular expectations shift policy

positions. The matrix is meant to re fect that dynamic reality and encourage
ongoing learning, exploration and evolution.
A Handbook for Sustainable Development
104

External verifcation
In some organizations comparable management systems, addressing speci fc
requirements or market sectors, could also be audited (e. g. ISO 1 4001 for

environmental management or ISO/TS 1 6949 for the automotive industry)

Clearly, the ideal is to develop a relationship of trust and con fdence


with your stakeholders, which means that they start from a position of trust

in the organization, rather than a position of mistrust. However, in a sector

where there is a legacy of mistrust, it is important to build a foundation of trust

using external veri fcation. There are many schemes on offer, and a few of the

most well known are outlined below, including some that are examples of local

accreditation schemes, some that cover speci fc sectors and others that are
holistic in character.

1. AccountAbility offers a range of external veri fcation tools, including


veri fcation of stakeholder engagement.
The AA1 000 Series is comprised of:

1. AA1 000 Framework, 1 999


The AA1 000 Framework was developed to help organisations build
their accountability and social responsibility through quality social and
ethical accounting, auditing and reporting. It addresses the need for
organisations to integrate their stakeholder engagement process into
their daily activities. The Framework provides guidance to users on how
to establish a systematic stakeholder engagement process that generates
the indicators, targets, and reporting systems needed to ensure greater
transparency, effective responsiveness to stakeholders and improved
overall organisational performance…
2. AA1 000 Assurance Standard (AA1 000AS)
The AA1 000AS is the f rst non-proprietary, open-source Assurance
Standard that covers the full range of an organisation’s disclosure and
performance. In applying the AA1 000 Assurance Standard (AA1 000AS),
the Assurance Provider evaluates the credibility of the sustainability
report, and assesses the underlying systems and processes that deliver
the relevant information and underpin the organisation’s performance…
3. AA1 000 Stakeholder Engagement Standard (AA1 000SES)
The AA1 000SES advances the right of stakeholders to be heard, and
the organisations’ obligation to adequately respond to their concerns. It
offers a robust basis for designing, implementing, evaluating and assuring
the quality of stakeholder engagement…

(Source: http://www. accountability2 1 . net/default. aspx?id= 2 2 8)


Building trust and confdence

1 05

2. The Global Reporting Initiative

The Global Reporting Initiative (GRI) was initially convened by the

Coalition for Environmentally Responsible Economies (Ceres) , a non-pro ft


coalition of more than 5 0 investor, environmental, religious, labour and

social j ustice groups. The GRI was established in 1 997 with a mission to

elevate sustainability reporting to equivalency with fnancial reporting. It has

recently been established as an organization in its own right.

The GRI has developed a set of core metrics intended to be applicable

to all business enterprises, sets of sector-speci fc metrics for specifc types


of enterprises and a uniform format for reporting information integral to a

company’s sustainability performance.

1
In broad terms, the GRI Sustainability Reporting Guidelines recom-

mend speci fc information related to environmental, social and economic


performance. It is structured around a CEO statement, key environmental,

social and economic indicators, a pro fle of the reporting entity, descriptions
of relevant policies and management systems, stakeholder relationships,

management performance, operational performance, product performance

and a sustainability overview.

3. The Cumbria Business Environment N etwork is an example of a local

system of veri fcation. The following details the criteria for its Gold Environ-

mental Award.

Introduction – environmental awards: gold award: criteria

1 .1 The Business Environment Network

This is an award for organisations and companies who have a fully


implemented EMS and are demonstrating continual improvement of their
environmental performance.

They will have made their initial commitment to environmental


management, to the level required for the Bronze Award.

They will also have conducted an initial environmental review to identify


their environmental aspects/impacts/risks.

They will have implemented the main elements of an EMS and put in place
procedures to minimise risk and control signi f cant aspects/impacts, at a level
consistent with that of the Silver award.

1 See http: //www. globalreporting. org/Home.


A Handbook for Sustainable Development
106

They will also have assessed their performance in managing their impacts,
through environmental audits and a review of their EMS.

At the same time they will have monitored their performance in key areas
and implemented the feedback loop through the EMS review process.

Their management will have reviewed their progress and planned for future
continuous improvement in environmental performance.

1 .2 Criteria for the gold award


Recipients will have demonstrated (in response to questions, in documented
form and/or by action) the following:

1 . 2 . 1 M onitoring and measurement

Depending upon the type of activities, there may be parameters that must
be monitored and measured. If required, they must have been monitored,
documented and kept records for the required time interval.

1 . 2 . 2 Environmental Audits

Any Environmental Management System must be audited, to determine


if the planned Objectives, Targets and Environmental Management
Programme are being carried out or achieved, and to measure
Environmental Performance against the criteria laid down in the
Environmental Policy and the Standard to which they are aiming.

1 . 2 . 3 Non-conformance, Corrective & Preventive Action

A non-conformance is any situation, identi f ed by audit or reported


by any party, where the system fails to ‘live up to’ the planned criteria
or requirements of the Environmental Policy, Objectives and Targets,
Procedures and Operating Instructions, Management Programme or
any other planned performance criteria. Once a non-conformance has
been identi f ed, corrective and preventive actions need to be considered.
The EMS needs to have systems in place to deal with these important
performance monitors.

1 . 2 . 4 M anagement Review

Any Environmental Management System must be reviewed by top


management to consider its continuing suitability, adequacy and
Building trust and confdence

1 07

effectiveness. The review needs to consider the EMS, value to the


organisation, whether the scope is still adequate and any improvements/
changes that may be necessary to ensure the EMS continues to meet
the organisation’s needs, the relevant Standard criteria and improves the
environment.

1 . 2. 5 Document control

There must be procedures for the control of all documents within the
Environmental Management System, including records, registers and
procedures to ensure that the system is logical and auditable.

If all these requirements are implemented and maintained, the EMS will
improve the environmental performance of the organisation, no matter what
its size, and result in some overall environmental improvement for all of us and
the biosphere…

2.1 Monitoring & measurement

It is a well known management saying that ‘what is not measured cannot


be managed’. This applies to environmental management as much as any
other area of management. In order to assess whether improvement is
taking place therefore, baseline measurements need to be established.
These may be described in different ways, for example as environmental
Key Performance Indicators (KPI’S), targets, sustainability indicators etc. The
important factors are that they are consistent with the environmental policy,
objectives and targets and they are reported to top management.

2.2 Environmental audits

The frequency of auditing the EMS will depend on such factors as the
relative signi f cance of the organisation’s aspects/impacts relating to the
environment and the results of previous audits. In a large organisation, the
programme for auditing activities relating to the EMS may be based, for
example, on a comparative risk factor to other risks. In a small organisation,
the annual visit by the BEN Advisor may be the only audit needed.

Whether the auditing is carried out internally or externally needs to be


considered in relation to available skills, resources and expectations of
interested parties such as insurers, shareholders and regulators. This may
vary according to the activities covered by the audit. The results of audits
need to be recorded and appropriately communicated, particularly to those
responsible for carrying out the management review of the EMS.
A Handbook for Sustainable Development
108

A successful EMS needs to maintain an ability to identify the weak areas


which may cause the system to fail in the achievement of its intended
purpose and also where improvements can be made in its effectiveness. The
process of auditing provides a formal, structured way of satisfying this need.
The information from a well structured/conducted audit programme assists
the overall aim of continual improvement.

EMS audits can be divided into two categories:

• System audits
• Procedural/Operational audits

‘System Audits’ check that an EMS meets the set criteria. This involves
checking that all the areas of the standard have been addressed and that the
documentation essential for effectively operating the system is in place.

During Procedural/Operational Audits, the effectiveness of the EMS in terms


of achieving environmental control and improvement is assessed. These
audits check that what the EMS documentation says should be happening ‘in
theory’ is actually being achieved in practice.

There must also be an audit programme in place. This is a plan for auditing
the EMS over a given period of time and provides information such as the
areas of the EMS to be audited, the timing of audits and the people who will
be tasked with carrying out the audits. The areas and topics which the audit
programme covers should be related to the environmental signi f cance of
the activities concerned and to the f ndings of previous audits. An effective
audit programme should contain both system audits and procedural/
operational audits.

Auditing can be carried out either internally or externally. The decision


needs to be taken in the light of the skills and resources available and
the expectations of interested parties such as insurers, shareholders and
regulators. The decision may vary according to the activities to be covered
in the audit.

To be properly effective it is important that the results of audits are well


communicated, particularly at senior management level. It is through audit
reports that managers who are ultimately responsible for the EMS gain
a formal view of its effectiveness. Audit results should be discussed and
considered during the Management Review. This information will assist the
reviewers in evaluating the actions needed to be taken to ensure effective
operation of the EMS in important areas such as objectives and targets, the
audit programme and required changes to the EMS operation.
Building trust and confdence

1 09

2.3 Non-conformance, corrective & preventive action

Any EMS needs to have a system for reporting and managing identi f ed
non-conformances. This is part of the feedback loop from audits, but may be
reported from other sources such as incident reports or observations from
staff. For small organisations this might not be a documented system, simply
good communications between management and staff to identify when
things go wrong and ensuring they get put right. For larger organisations a
documented, formal system is more appropriate.

There are two basic types of non-conformances, Minor and Major:

• Minor Non-Conformances, in a system auditor’s vocabulary are things


that do not fail you, in the achievement of Certi f cation to any Standard
or Award, but must be corrected within a certain time limit. They must
also be ‘written off’ by the auditor within a speci f ed time limit by the
provision of suitable (usually documented) evidence.
• Major Non-Conformances, are those things that show up as faults with
major potential consequences, for example failure to conform with
Legislation or Regulation, situations that could lead to pollution incidents
which are not controlled etc. Normally these would lead to loss of
certi f cation or attainment of a Standard or Award until corrected.
These matters will be identi f ed, at external audit and will affect the
outcome of the attainment of an award.

Investigation of non-conformances is essential in order to correct what


has gone wrong and to identify ways of preventing re-occurrence. This
requires that a procedure is in place for dealing with non-conformances and
outcomes are reviewed by top management. In effect, the level of non-
conformance incidents is used as a barometer of how well the EMS is being
implemented across an organisation.

2.4 Management review

The review needs to be planned at suitable intervals, typically annually,


and the results should be recorded for future reference. Although it is not
necessary to consider all the areas of the EMS at each review, this should be
planned for over a cycle (3 years maximum is suggested). The review is an
opportunity to consider how further value can be added for the organisation
and the environment. The inputs and outputs for the review should include
the following:
A Handbook for Sustainable Development
110

INPUTS:

• Results of audits and compliance with legislation, regulatory and other


requirements
• Communications received from external interested parties, in particular
any complaints or criticisms
• The overall environmental performance in terms of continual
improvement year-on-year
• The extent to which current objectives & targets have (or are being)
met
• Status of any identi f ed corrective & preventative actions
• Status of any follow-up actions from previous reviews
• Changing circumstances including technical, legal, organizational
structure and any other circumstances related to environmental aspects/
impacts
• Recommendations for improvement

OUTPUTS:

• Decisions and actions that relate to changes in the environmental policy


• Amendments to objectives and targets
• Changes agreed to the EMS structure, scope and operational aspects
• Assessment of overall performance of the system and its capability of
delivering continual improvement
• Allocation of resources for future developments

2.5 Document control

The control of documents needs to be such that:

• They are approved before being issued


• Reviewed, updated and re-approved when appropriate
• The status of the current revision is identi f able
• Current versions only are available at the point of use
• They are legible, appropriately stored and readily identi f able
• Distribution is controlled
• Obsolete documents are prevented from unintended use, archived and
identi f able as superceded.

(Source: http://www. cumbriaben. com/)


Building trust and confdence

111

4. SECTA’s (South East Cornwall Tourism Association) Green Acorn Award

Scheme is an example of a system of veri fcation aimed at a specifc sector.

What the scheme is about

As SECTA Members, we all know that, no matter how good our hospitality,
attractions or services, what really brings visitors to South East Cornwall is
the countryside, the sea, the beautiful scenery, and our heritage. Whatever
visitors do while they’re here takes place against this wonderful backdrop
and it goes without saying that, to protect our own business interests, we need
to help protect this irreplaceable asset .

SECTA has some 1 40 Members and, together with our customers, we make
a signi f cant impact on our local environment through the creation of waste,
consumption of water and use of energy, for example. On a larger scale, if
recent summers are anything to go by, all of us have been affected by severe
changes in weather patterns which have resulted in an increase in storms
and f ooding and a decrease in visitors; a direct impact of global warming a
bit too close to home!

That’s why SECTA introduced The SECTA Green Acorn Award Scheme, a
voluntary, “green tourism” Award scheme speci f cally for Members. The project
gives recognition to those who want to do more to reduce the impact of their
businesses, and that of their guests, on the environment. The scheme has the
following aims:

• to encourage Members to think about the effect their business may have
on their surroundings
• to suggest a number of small ideas that could make a signi f cant impact
• to recognise those who adopt business practices that will help protect
our local environment

The scheme is purely voluntary and only requires a number of relatively


simple actions which should cost you very little except, perhaps, a little
more time. In fact, similar schemes have proven to save participants money
on running costs , as well as providing the other bene f ts mentioned below…
A Handbook for Sustainable Development
112

[The criteria:]
Save energy by installing sensors and Low energy (less than 25W) bulbs
low energy bulbs in areas of frequent f tted.
use e.g. landings, hallways, external
Daylight sensitive lighting f tted.
lighting. Low energy bulbs use around
80% less energy. Infra-red (PIR) lighting f tted.

Cut costs by setting your hot water Hot water thermostat set at 60ºC.
Energy

thermostat at 60ºC. Every 1 ºC above


this can result in a 1 0% increase in fuel
use.

Cut bills and save energy by insulating Loft insulation 6”/1 50mm deep.
loft spaces.

Reduce wasted energy by installing Timing devices f tted on heaters and


timing devices to heaters and lamps. lamps.

Help avoid pollution and damage Phosphate free detergents used.


to plants and animals by using
Chlorine free cleaners and bleaches
environmentally friendly cleaning
used.
products e.g. washing powder,
dishwasher tablets, toilet cleaners. Cleaners with less than 5% surfactants
used.

Protect our beaches, seas and marine Bags and bins or commercial disposal
Pollution

life by encouraging visitors to “bag and unit supplied. Guests informed.


bin”, not f ush, sanitary products and
nappies.

Reduce “food miles” and petrol. Shop locally and/or buy locally
produced food.

Provide information to help reduce Information on public transport,


congestion, pollution, accidents and walking and cycling provided.
fuel.

Water-saving devices f tted to WCs can Water-saving devices or f lled plastic


save around ¾ gallon of water with bottle placed in cisterns.
each f ush.

Save water, energy and detergent Towel changing agreement introduced.


Water

pollution by introducing a linen


Sheet changing agreement introduced.
changing agreement with your guests.

Cut costs and conserve water inside Showers f tted.


and out.
Water butt installed for garden.
Building trust and confdence

113

Re-use or sort and recycle waste. Glass recycled.


Involve your guests too.
Paper recycled.
3 out of 5 actions = one tick
Cardboard recycled.

Plastics recycled.

Aluminium cans recycled.

Reduce packaging. Buy in bulk.

Cut your collection costs by Vegetable and garden waste


composting your vegetable and composted.
garden waste or using a “Wormery”.
Wormery used.
Waste

Encourage self-catering guests to do


the same.

Eliminate junk mail by registering Registered with the Mailing Preference


with the Mailing Preference Service. Service.
Tel: 0345 034599
2

Help create a market for recycled Buy recycled toilet rolls/kitchen towels.
goods and reduce the number of land f ll
sites. Buy recycled printer cartridges.

Buy recycled photocopy paper.

Advertise your commitment to the Recycled printing papers used.


environment.

(Source: South East Cornwall Tourism Association, 2 007)

5. The Carbon Trust is an example of a veri fcation system aimed at a specifc


element of sustainable development, i. e. carbon footprints in relation to

speci fc types of organizations, i. e. schools.

The Carbon Trust is an independent company funded by Government. Our


role is to help the UK move to a low carbon economy by helping business
and the public sector reduce carbon emissions now and capture the com-
mercial opportunities of low carbon technologies.

The on-line benchmarking tool has been developed as part of the UK’s
Carbon Trust initiative. The UK has ambitious targets for reducing emissions
of greenhouse gases, and the education sector can make a valuable

2 The new MPS registration line telephone number is 0845 703 45 99.
A Handbook for Sustainable Development
114

contribution to this national effort by reducing the use of energy throughout


the sector.

In most buildings, including schools, no-cost good housekeeping measures


to reduce energy can often reduce energy consumption, and energy costs,
by 5–1 0%. Investing in improved technology can often reduce energy costs
suff ciently to pay for the investment in one or two years, while the savings
continue long after the equipment is paid for.

Benchmarking is a method which allows schools to compare their energy


performance with other schools, by comparing their annual energy use per
square metre.

At the moment, we are working with just two categories of school: primary
and secondary. For each of these categories, we want to establish what the
typical level of energy consumption is for each category. By calculating the
annual consumption in terms of kilowatt hours per square metre, we can
allow schools of different sizes to compare themselves in a meaningful way.
For each category, we calculate the median value of the data. This is the
value which 50% of data points will be higher than, and 50% will be less
than. It is much less affected by outlying data than the average value.

We also want to establish, for both categories, some measure of which


schools are doing signi f cantly better than typical, and which are doing less
well. We de f ne schools demonstrating good practice as those whose energy
consumption represents the f rst quartile level of the data. At this level of
consumption, 25% of the schools in the category will be doing even better,
while 75% will be using more energy. In a similar way, we def ne the third
quartile as the level demonstrating poor performance. At this level, 75% of
schools will have better (lower) energy consumption, while only 25% will
be worse.

Finally, we use the 1 5th percentile, the level at which only 1 5% of schools
will be doing better, as a measure of best practice.

The benchmarks are calculated separately for electricity and fuel, so that
a school which is doing very well in terms of electricity consumption, for
example, may be doing less well in terms of fuel consumption.

Finally, we have to consider weather corrections. When the benchmark


graph is displayed, the benchmark levels are always the same within each
category. The individual school, however, may have its consumption level
modi f ed slightly to re f ect geographical location. The different regions of the
UK are normalised by the average degree days for the year. It is assumed
Building trust and confdence
115

that 75% of the fuel consumed is used for heating, and this component is
modi f ed by a degree day calculation. If you click on the help link on the
degree days page, you will see the method used for the calculation.

Interim Benchmark Levels used before the Spring 2005 upgrades

Interim benchmarking fgures calculated from


1999 - 2000 AMP data for 1971 schools
Primary schools Secondary schools Secondary schools
Annual energy (No pool) (With pool)
as kWh/m 2
Fossil fuel Electricity Fossil fuel Electricity Fossil fuel Electricity

Average (not 1 90 37 1 58 38 1 82 34
used for bm)

“Best School” 89 17 95 22 1 06 18

Quartiles:

1 st (Best 113 22 1 08 25 1 42 29
practice)

2nd (Typical) 1 64 32 1 44 33 1 87 36

3rd (Poor 224 45 1 91 41 233 41


practice)

Annual CO 2 as CO 2 CO 2 CO 2
kg/m 2

Best practice 34 35 44

Typical 49 46 56

(Source: The Carbon Trust, 2 006)

6. The Ethics Mark is an example of a veri fcation system of a more holistic


kind, of evaluating an organization’s overall culture. It is an example of a

holistic measure going beyond sustainable development but including it as

one of its component elements.

The Ethics Mark™ is an independently veri f ed symbol of ethical


commitment that helps organisations to demonstrate their trustworthiness,
transparency and ethical accountability.
A Handbook for Sustainable Development
116

1. The f rst stage in the process is to draft a Values Statement which


summarises how you are addressing the key ethical issues facing your
organisation. This involves considering a structured series of open and
challenging questions to effectively assess yourselves.
2. Validating the test is whether your statement matches the reality of the
day to day experience of those who deal with you and work for you.
The Mark will therefore be awarded if you can demonstrate that the
experience of your stakeholders and colleagues matches the claims in
your Values Statement.
3. A f nal evaluation report is completed by your adviser and submitted
to The Foundation for an assessment, overseen by an independent
committee of reference.

The Ethics Mark™ is awarded for a period of 3 years, when your organisation
will be re-assessed. The Mark represents an ongoing commitment, not a
‘one-off’ standard, so Holders will be expected to develop and action an
ongoing plan of continued development, to be assessed as part of the 3 year
renewal.

CASE STUDY using the Ethics Mark:

New Directions is a team of theatre practitioners who specialise in devising


interactive participatory experiences framed by theatrical celebrations. New
Directions are based in Workington and are part of Theatre by the Lake.

Supported by the Ethics Foundation we are partway through the process of


gaining an Ethics Mark. The following is a brief summary of the impact the
process has had on our organisation so far.

Having drafted a Values Statement, we now f nd that these stated values


underpin a lot of our decision making, including long term strategic planning.
The ethical process has helped us to think about how we respond to
requests for our work, how we make decisions based on the value of our
work, how and where it is best placed and how the bene f ts can best be
sustained.

We are starting to breed an organisational culture of questioning and


resolution. We are learning that there are usually no easy answers to
complex issues, but that agonising over a diff culty is preferable to ignoring it.
We have found that it’s often not fair to someone if we ignore an issue and
that balancing fairness is signi f cant to resolving problems.
Building trust and confdence

117

The process has brought our team closer together through the discussions
of individual values and shared values. As a busy outreach organisation
with individuals working on different projects, developing internal
communication, team collaboration and a shared approach to the work
can be diff cult. The stated values are also enabling us to develop a shared
methodology and a consciousness of the way we communicate and interact
with people within our work.

A key question that has arisen through this process is how we measure
our work. Our integrity is very important to us and as such we want to
assess whether we do what we say we will do. We believe that this is the
basis of developing trusting relationships. The current tick box approach to
regulating our work seems inappropriate. We are interested in whether and
how a Values Statement might support a more meaningful way of making
value judgements about what we do.

The values statement makes sense. In an artistic organisation that devises


unique projects in response to demand we have found it very diff cult
to articulate and communicate what we do. As we progress with the
process it will be interesting to see how the statement informs our identity,
con f dence, projects, branding, marketing, income and most importantly our
relationships and the way we behave.

(Source: Ethics Foundation)

Conclusion
The organization may wish to consider the following.

• Is your commitment to sustainable development and your values consonant?

Do they ft together and make sense as a whole?


• Do your intentions match up to the experience of colleagues, customers,

suppliers and other stakeholders?

• Do you ‘walk the talk’? Is your commitment to sustainable development seen

as being authentic and genuine?

• Is delivery of sustainable solutions as promised, and consistent under

pressure?

• Do you conduct an overall sustainable development evaluation, in relation to

desired outcomes?

• Can you answer: why do you develop sustainably? Is it worth it? Why?
A Handbook for Sustainable Development
118

Postscript – and an example of verifcation using


many sources
For a comprehensive overview or checklist – even though we are trying to
discourage checklists being the focus or the end point of SD – you need look no
further than M&S.

[M&S’s] Look behind the label

Stocks of some f sh that used to be plentiful have become dangerously low


in recent years, including popular species like cod. The Marine Conservation
Society (MCS) has identi f ed a list of 35 f sh that are threatened and we
monitor all the f sh we sell against this list.

Marks & Spencer has been recognised as a leading global retailer for
sustainable f shing by the Seafood Choices Alliance – the only UK
organisation and retailer to do so. We have also been recognised by
Greenpeace as the leading food retailer on responsible f shing and ranked as
the UK’s number one retailer for sustainable f sh by the MCS.

We want to help the f shing industry, and the communities it supports,


survive in challenging times. We therefore work closely with environmental
groups, like the Worldwide Fund for Nature, and the industry’s own
representative bodies, like the National Federation of Fisherman’s
Organisations, to look for sustainable options with the innovative Invest in
Fish project in the South West of England.

For example, we have a project in Scotland, where a great deal of North Sea
cod can be inadvertently caught by haddock trawlers using traditional deep
f shing methods and the quality of the f sh landed can vary. We have worked
with our Scottish f shermen and found that by using different nets, set at a
different height in the sea, we could dramatically reduce the by-catch to less
than 5% of the total catch.

We only sell f sh when we believe that it has been responsibly sourced


and didn’t sell sword f sh for several years as f shing methods caused the
accidental capture of endangered species of sea turtle. Last year, we
introduced American sword f sh, where special measures are taken to
protect turtles and the catch is monitored by independent observers. We
are now setting up a similar scheme in Brazil.

Where we can’t f nd sustainable sources of the f sh our customers want, we


do something about it. We have funded restocking schemes for Wild Scottish
Salmon and Cornish Lobster to help increase supplies and support local
Building trust and confdence

119

economies in rural areas. The lobster nursery we work with in Padstow


rears and releases over ten thousand lobsters into the sea each year!

Our customers can be 1 00% con f dent that we care about how we source
all our f sh and that we are doing our bit to ensure that the species we sell
will be around in generations to come.

(Source: http://www. marksandspencer. com/gp/


node/n/43584031 ?ie= UTF8&mnSBrand= core)

References
ISO 14001, Environmental management systems — Requirements with guidance for
use, Geneva: International Organization for Standardization
ISO 19011, Guidelines for quality and/or environmental management systems
auditing, Geneva: International Organization for Standardization
ISO/TS 16949, Quality management systems — Particular requirements for the
application of ISO 9001 :2000 for automotive production and relevant service part
organizations , Geneva: International Organization for Standardization
South East Cornwall Tourism Association (SECTA) (2007) SECTA Green Acorn
Award Scheme. Available at http://www.cstn.org.uk/download.asp?id=17
Ethics Foundation (2006), Your Commitment. Available at http://www.
ethicsfoundation.com
Marks and Spencer, Look behind the label . Available at http://www.
marksandspencer.com/gp/node/n/43584031?ie=UTF8&mnSBrand=core
1 20

Chapter 8: Ways forward


BSI Committee SDS/1 is now considering wider ways in which BS 8900 can

be utilized.

Linking BS 8900 with the draft International Standard


ISO 26000
Sustainable development is used as a high-level title to encompass socially

responsible and ethical behaviour. BS 8900 is therefore a direct and relevant

contribution to developing ISO 26000, the international standard currently

under construction by an ISO working group of some 3 00 strong. The BSI

Committee that developed BS 8900 is representing the UK through around six

technical experts nominated to the ISO working group. The working group

is arranged around six stakeholder categories, under ‘The role of standards in

sustainable development’, i. e. industry, government, trade union/employees,

N GOs, consumer and other stakeholders.

ISO 26000 will undoubtedly be a powerful and important standard,

particularly because of the broad base of international and stakeholder support.

But it is not exactly the same coverage as BS 8900; social responsibility obviously

overlaps but is not the same as sustainable development. It is also not intended

as a guidance standard or to have the ‘evangelical’ role of BS 8900. It is the BSI

Committee’s intention that BS 8900 informs the development of the ISO, but the

International Standard is bound to be longer and more technical because it will

need to allow for certi fcation. The ISO is still a few years away and there will be

several rounds of consultation.


Ways forward

1 21

The UK Committee realizes that BS 8900 operates in a relatively

progressive environment, supported by many other safeguards and regulations.

The ISO would need more detail and some prescription embedded within it to

provide the necessary structure for a comprehensive and complete ‘package’.

However, the standard does provide:

• a broad framework for a social responsibility standard;

• the necessary approaches for developing and encouraging a more ‘mature’

socially responsible culture.

The current work on ISO 26000 explains what issues an organization needs

to address in order to operate in a socially responsible manner. Within the

ISO 1 4000 family there are also other standards on environmental labelling and

life cycle assessment, communication which further extends the framework of

sustainable development. A recent publication on the future of ISO standards

concluded that:

Our understanding of and concerns about environmental and sustainable


development issues has evolved over time too. Just as the existing ISO
1 4000 standards play an important role in helping organizations to
address today’s priorities, so too can future standards help to address
future priorities.

(Source: http://www. fagsoft. net/resiworks/download/iso1 4000. pdf )

Sustainable communities
The next potential focus could be local communities that might want to

develop a community-wide approach to sustainability in their area. They could

adopt BS 8900 as a framework. While this is not a standard that can be used

fcation, and it is therefore not possible to put the Kitemark on


to obtain certi
®

an organization’s stationery, etc. , it is possible to see some local credit f owing

from making it clear that the community’s organizations are committed to

sustainability and are using a standardized approach (even though very fexibly) .
In some ways, because adopting BS 8900 cannot be a badge-collecting exercise,

it has certain credibility and denotes particular commitment.

Grasmere, my local village, is considering taking on the standard as a

community – it would be the frst to do so. The area already has quite an active

programme and so this would help to structure further efforts, and it should not

cost very much at all. But we need to develop a more community-based set of
A Handbook for Sustainable Development
122

outcomes and principles, and a development matrix. Also, for a community, we

will need to be clear about how we convey our ‘adoption’.

The ‘North West launch’ of BS 8900 took place in Grasmere to demonstrate

commitment to developing and promoting standards outside the South East.

It was also a powerful example of how this standard can j oin together local

business leaders and many others from interested organizations, as well as

individuals who have an interest. The event was actively supported by the

Lake District National Park. Birmingham and Litch feld are also looking at the
possibility of adopting BS 8900, it is understood.

The UK Government has some guiding principles for sustainable

communities, as follows.

What makes a community sustainable?

Sustainable communities should be:

• Active, inclusive and safe – Fair, tolerant and cohesive with a strong local
culture and other shared community activities.
• Well run – with effective and inclusive participation, representation and
leadership.
• Environmentally sensitive – providing places for people to live that are
considerate of the environment.
• Well designed and built – featuring a quality built and natural
environment.
• Well connected – with good transport services and communication
linking people to jobs, schools, health and other services.
• Thriving – with a f ourishing and diverse local economy.
• Well served – with public, private, community and voluntary services
that are appropriate to people’s needs and accessible to all.
• Fair for everyone – including those in other communities, now and in
the future[.]

(Source: http://www. sustainable-development. gov. uk/)

Some examples in practice so far


One aspect of sustainable communities is the physical environment – the built

urban environment for many. It is not the only aspect by any means, but it is one

starting point. Example 1 8 is for a large urban centre – Birmingham.


Ways forward

1 23

Example 1 8 — Park Central Birmingham

Sustainable communities – Park Central, Birmingham

07 May 2007
Simon Kimberley, MRICS, Optima Community Association
Simon Kimberley, a chartered surveyor and Chief Executive of Optima
Community Association, the housing association that has provided the
essential leadership on the complex and award winning redevelopment
of f ve Birmingham city centre estates. Here, he turns his attention to the
project at the heart of the redevelopment, Park Central.

Park Central is an ambitious mixed use development, part of Optima’s


£350m Attwood Green urban regeneration scheme. Its purpose is to create
high quality homes in a thriving and socially inclusive environment raising
aspirations along the way. It is a partnership between Optima, Birmingham
City Council and Crest Nicholson covering 60 acres of brown f eld land
in central Birmingham. Launched f ve years ago, it’s been breaking new
ground ever since with its mix of housing, apartments, commercial zones
and community facilities characterised by a distinctive look and high quality
feel. When f nished it will provide up to 1 900 new homes, 225 affordable
homes for Optima and 26,500m 2 of commercial space all set round eight
acres of landscaped community parkland.

The story so far


Following extensive demolition and clearance Park Central now boasts
new off ce developments, a state of the art community nursery, two new
parks, public art and a hotel. To date 450 homes have been built and 500
are in construction. Our affordable homes are pepper potted amongst
those in private ownership. We refurbished our existing properties to a high
standard, internally and externally, ensuring that they blend in well with the
new build. New roads have been built, new footpaths laid and surface level
crossings replace subways. We even raised the road level 3 metres at one
site to get rid of the scores of steps leading up to residential blocks.

Green issues: handling contaminated land


Demolition contractor Coleman & Company worked with Powerscreen to
develop a machine that could be driven on-site to separate hard materials
from waste. As a result, 90% of the 350,000 tonnes of contaminated waste
A Handbook for Sustainable Development
124

generated by the site has been recycled saving in excess of £8m and the
estimated 1 5,000 lorry movements that would have been needed to and
from the land f ll site.

Sustainability

Where we once had properties that were impossible to let, we now


maintain a waiting list. Satisfaction with our homes stands at 90% with 92%
of residents saying they would recommend Optima to a friend and to top
it all we were awarded the Deputy Prime Minister’s Award for Sustainable
Communities.

Funding

The bulk of investment comes through land sales to Crest Nicholson and an
innovative f nancial mechanism linked to a development agreement for the
upfront provision of £38m of essential works. Crest delivers the prescribed
and desirable works (in lieu of traditional section 1 06 planning agreements)
on behalf of the partnership. 1 00% of the cash goes back into the area and
the rest of Attwood Green and because of an overage agreement, as land
values have increased, we have been able to capture the benef ts.

Leadership – keeping it all a foat

A multi-disciplinary project team, that includes Optima tenant board


members, meets regularly to address the issues that arise and work together
to deliver successful joined up solutions. A key role for Optima throughout
this process has been to provide the leadership necessary to sustain a
project of this size and complexity. No matter how prestigious or novel,
initial enthusiasm can wane and our job is to maintain the strength and
momentum of that original vision.

The future

We’re committed to maintaining our homes (and through our subsidiary


Attwood Green Estate Services) the surrounding environment to a high
standard whilst the City continues to care for the public realm and award
winning parks.

Keys to success

Anyone even vaguely familiar with the area will acknowledge that the pace
of transformation at Park Central has been remarkable. Our success lies in
Ways forward
125

maximising the bene f ts of a prime location, the strong working relationship


between the partners and the leadership and vision afforded by Optima with
its roots f rmly embedded in the local community.

Simon Kimberley M RICS


Optima Community Association

(Source: http://www. rics. org/Networks/Regions/UK/


England/WestM idlands/sustainablecommunities070507. h tml)

Emergent sustainable development and


community activity
One community starting to address these complex areas is Ambleside in the

Lake District (see Example 1 9, which is current at the time of publication) .

Example 19 — Ambleside, Cumbria


Local communities host biggest Eco event ever held in the Lakes

Gearing up for global warming and climate change – local communities from
within Cumbria are joining forces in Ambleside on 28th October to share
their experience of sustainable living and to f nd out more about the practical
measures we can all take to reduce global warming that will improve the
situation locally and benef t communities around the world. Local MP Tim
Farron will be there to offer his support:

“Climate change is a reality which affects many of my constituents in


Westmorland & Lonsdale. Each year I receive more and more stories of
homes which have been fooded and many communities across the South
Lakes are now crying out for urgent food relief schemes.

“I’m delighted to be able to support this event, which is a fantastic


opportunity for local residents to come along and learn f rst hand what we
can all do to stop and reverse climate change, and ensure that our planet is
protected for future generations. ”

The event includes practical demonstrations on energy saving, waste and


recycling, community gardening and straw bale buildings. An Eco-surgery
will also be set up where local people can ask the experts about practical
ways of saving energy, reducing pollution and improving recycling.
A Handbook for Sustainable Development
126

Esthwaite Green Link, (based in Hawkshead) will have special eco-shopping


bags on which children can add their own designs and Grasmere Sustainable
Community Group will demonstrate a range of local initiatives. Sustainable
Communities will be giving away low-energy light bulbs and water-saving
devices. John Biggs, Chair of Cumbria’s Sustainable Communities project:

“This is a great opportunity for local communities to showcase their practical


solutions to sustainable living. There are a number of excellent projects
already up and running. Grasmere has spearheaded the eradication of
Japanese Knotweed; effective action has seen red squirrels breed again in
the valley. The f tting of solar thermal panels and loft insulation has followed
household energy checks, and Brampton has just appointed their own
Sustainability Off cer. ”

There’s plenty of fun for children too. Students from St Martin’s College
will be running a rolling programme of eco and on-line computer games for
families to learn how to reduce their eco-footprint in the home.

Local school children will showcase their own work on sustainability and
explain what their schools are doing to protect the environment. Chris
Rowley, St Martin’s College, Tutor in Geography and Environmental
Education said:

“The environment is very much part of the school curriculum and the teacher
training college is ideally placed to share its expertise with local schools.
All the local schools have shown real enthusiasm and commitment to
environmental education in their curriculum. At the college we have students
who are keen to support them and this event is giving everyone a real focus. ”

Fairly traded products will be on sale and Ambleside Fairtrade Group will be
there to explain how consumers can not only purchase ethically produced
quality goods locally but also how they can help disadvantaged producers
in the developing world get a better deal in the global market. Tearfund
representative, Anita Payne:

“Tearfund is looking at the connection between climate change and


international poverty, linking what we do locally and nationally with the
effects on poor communities around the world. We will be comparing our
eco-footprints with those from vulnerable countries and encouraging local
residents, businesses and visitors to undertake some eco friendly practical
action to improve their local environment and to contribute in a small way
towards a more sustainable lifestyle.

Churches Together in Ambleside is one of the founding organisations that


have helped put this event together. Chair of the organisation, Leo Pyle said:
Ways forward

1 27

“Churches Together are committed to this event which is so signi f cant for
sustaining the life of our beautiful area. I’m sure that it will inspire us all to
consider how we might live more simply so that others and future generations
might simply live. ”

Global warming is changing the Cumbrian climate. Current predictions


indicate that the region will have to face extreme droughts in summer, severe
storms in winter and rising sea levels threatening most of our low-lying
coastal areas. There will be an Open Forum to hear what the experts say
about the likely effects in Cumbria and an opportunity for people to share
their concerns and learn what they can do to reduce their eco-footprint.

Background information

The event is being hosted by Tearfund, Churches Together in Ambleside


District, Grasmere, Hawkshead/Esthwaite Sustainable Communities Group
and St Martin’s College.

The event is also being supported by the National Trust, LDNPA, Field
Studies Centre, Ambleside, Grasmere, Hawkshead and Langdale Primary
School, Hawkshead Churches Together, Cumbria County Council, SLDC,
CDEC and the Tourism and Conservation Partnership.

Tearfund is a Christian Relief, Development and Social Justice Agency. It


is a movement of Christians working with local partners and people in the
UK and around the world, tackling poverty and the causes of poverty and
injustice.

Fairtrade Cumbria was the second county in England to be granted Fairtrade


County Status. There are now hundreds of different quality products
available. The demand from customers and the number of establishments
across the county that now provide fairly traded goods has grown
exponentially, building a better future for millions, both those who grow the
products and those who purchase them.

Sustainable Communities is a co-operative project between Churches


Together in Cumbria and the voluntary and statutory bodies of the county
to increase awareness of human impact on the local and global environment
and to give advice and practical help in taking action. Five community
groups have been established as pilot projects. Each community has set up
its own programme so that it is relevant to them and within their ability to
achieve. Home energy surveys have been conducted in three communities
leading to installation of home insulation and other energy saving
measures. Projects have included knotweed eradication, planting fruit trees,
A Handbook for Sustainable Development
128

promotion of non-phosphate containing detergents, support of farmers’


markets, distribution of cotton shopping bags, meetings to discuss speci f c
issues, and ‘green pages’ in parish magazines.

Churches Together in Ambleside District (CTAD) is made up of the nine


churches and faith groups in the area. It provides a framework for the
Churches to work together on issues such as housing, poverty, the
environment etc, to provide a service to the local community, and to
worship and study together. Last year CTAD was one of the main local
groups deeply involved in the campaign to Make Poverty History.

Environmental information

Eco-footprinting is a way of measuring humanity’s impact on the natural


environment. Using various consumer indicators such as energy
consumption and other resources it is estimated that we would need almost
3 Planet Earths if the rest of the world lived as we do in the Lakes.

Global warming is a consequence of too much CO 2 and other insulating gases


that allows the sun’s rays to heat up the atmosphere. There is evidence that
human activities, particularly the burning of fossil fuels (oil, gas, coal) for
energy, are signi f cant contributors to global warming and climate change.
As the atmosphere heats up the climate and weather patterns change. Sea
levels around the UK coast are rising. The 1 990s were the warmest decade
on record. Winters have been getting wetter, with increased incidence of
severe storms while summers have been getting drier.

Lake District Because we are based in the Lake District there is a real
need to address the energy issue in a practical and eff cient way. There
are opportunities here but there are also some interesting challenges,
particularly around planning constraints. The Lake District has a relatively
small population compared with most urban areas, but we have a big eco-
footprint primarily because of the mass in f ux of millions of visitors every
year. These issues are the same for all national parks and we hope this event
will stimulate ideas on how other national parks can take practical measures
to tackle the problems of global warming and climate change.

(Source: http://www. cgbf. co. uk/partners. html)

One focus for communities has been concerns about the prospective reduction

in fossil fuels – often referred to as peak oil. One such movement has started in

Wales (see Example 20) .


Ways forward

1 29

Example 20 — Transition towns 1

Pioneering Welsh town begins the transition to a li fe without oil

As the supply of cheap fuel dwindles, rural Lampeter embarks on


‘energy descent’

There is, as the ads say, no Plan B. The age of cheap oil is drawing to a close,
climate change already threatens, and politicians dither. But the people
of Lampeter, a small community in the middle of rural Wales, gathered
together earlier this week to mobilise for a new war effort. They decided to
plan their “energy descent”.

It was in fact the biggest public meeting in Lampeter anyone could


remember. West Wales has a long tradition of alternative living, but the
scale of this was different. More than 450 people f led into the hall in a place
where the total population is just 4,000. They had come to turn themselves
into a Transition Town – one of a rapidly growing network of places that
have decided not to wait for government action, but to prepare for life after
oil on their own.

First, the coordinator of the Transition Town movement, Rob Hopkins,


told them how urgent the crisis is. Hopkins, who helped create the earliest
Transition Towns in Kinsale, Ireland, and Totnes, Devon, and advises the 20
or so others that have signed up, describes himself as an early topper.

He’s one of those who think that in the next f ve years we will have reached
peak oil – the point at which half the world’s oil reserves have been used
up. After that production goes into irreversible and rapid decline and our
main source of energy starts running out. Since we have not so far identi f ed
another viable energy source to replace it, the only rational response, he
said, is to plan our energy descent. “Life after oil will have to look very
different.”

The world, he explained, divides into early toppers and late toppers. The
early toppers, made up largely of former industry geological experts,
calculate that world oil production has already or will very soon peak. The
end of oil is nigh, in other words.

The late toppers, made up mostly of more optimistic oil companies,


governments and economists, predict we have longer, with peak oil some 20

1 Correction printed in The Guardian on Thursday April 1 2 2007 – Totnes is in Devon,

not Cornwall.
A Handbook for Sustainable Development
130

to 30 years away. “I tend to believe the people with no vested interest, but
either way this is one of the most dramatic shifts humanity has had to face,”
Hopkins warned.

By now the people of Lampeter, from ageing hippies to young activists, were
shifting in their plastic seats (made with oil) and drawing anxiously on their
water bottles (made with oil) if not reaching for their medicines (made with
oil). Hopkins told them they were likely to experience a range of common
symptoms that accompany initial peak oil awareness.

One might be an irrational grasping at infeasible solutions. At hydrogen,


for example. No good, running the UK’s cars on hydrogen would need 67
Sizewell B nuclear power stations or a wind farm bigger than the south-west
region of England. Or what about biofuels? No again, it would take over 25m
hectares of arable land to run the UK’s vehicles on biodiesel, and the UK
only has 5.7m hectares of arable land. We need to eat too.

Unfortunately, British farming has evolved “into a system for turning oil into
food”, reliant on the energy-intensive manufacture of synthetic fertiliser,
heavy use of oil-based plastics, and centralised just-in-time distribution
systems that also guzzle oil.

After Hopkins, Guardian columnist George Monbiot, who lives near


Lampeter, tried to cheer them up. Unlike Hopkins, he said he had been
persuaded that the end of oil was not nigh, but only nigh-ish. We may have
another 1 0 to 30 years. And there was lots of coal for energy.

The problem was that if we switched back to sin fuels that increase our
emissions, climate change will undo us even faster than peak oil.

The drive for change in Lampeter has come in part from a group of local
farmers – both Patrick Holden, the Soil Association’s director, and Peter
Segger, the businessman who was the f rst to supply the mass market with
organic foods through the supermarkets, have their land nearby. Both have
decided that the future lies in selling more of their produce locally instead of
having it trucked round the country.

Segger and his partner Anne Evans have already switched from supplying the
major retailers to selling half their vegetables within Wales.

Holden confessed to a touch of both survivalism and optimism. As an organic


farmer who does not use arti f cial fertiliser, he said he had been feeling smug
until he heard Hopkins speak a couple of months ago.
Ways forward

1 31

But he realised his produce was also part of the problem once it left his
farm, feeding into the system of centralised distribution. Now he is trying
to make his farm self suff cient in energy: he has already invested in burying
half a mile of pipes under a f eld to extract heat from the soil that keeps his
house warm.

Four hours into planning their energy descent and over bowls of local cawl
broth the crowd in Lampeter were considering what they would like to
happen – a ban on advertising that encourages consumption; turning the
local supermarket into a giant allotment – and what they could actually do
– install a community wind turbine; encourage low-energy buildings using
sheep’s wool for insulation; swap skills.

Someone suggested that a local landowner give the town an acre for a
community vegetable garden. There was an awkward silence until someone
else remembered a playing f eld that would serve the purpose, if the council
agreed.

There was plenty of inspiration from pioneer towns.

Transition Totnes has introduced its own currency with notes that can only
be spent in local shops. Its businesses are being audited by an accountant
who provides a wake-up call by identifying parts of their operations that
become unprof table as oil prices rise. The town is planting nut trees which
can provide emergency food and timber for construction while also acting as
carbon sinks.

Lampeter decided emphatically on a show of 450 hands that it would meet


again to plan its next stage. And then its people spilled out on a clear spring
night into the car park and, just this one last time, drove home.

How we use oil

• 1 30kg packaging made from oil-derived plastics is consumed by British


households each year. Two-thirds of it is used in food production
• 57[ ]miles is the average distance a tonne of freight now travels by road.
In 1 953 it was 21 miles
• 95% of our food products require the use of oil, and the supply of food
accounts for 21 % of Britain’s energy use
• 3.5 litres of oil is needed to produce half a kilogram of steak.

(Source: Lawrence, 2 007)


A Handbook for Sustainable Development
132

Widening horizons...the international perspective


It is important to see sustainable development from differing viewpoints and

horizons. The following case studies:

• see beyond the UK to the international context (Case Study 4) ;

• look to earlier sustainable crafts from which we can learn (Case Study 5 ) ;

• consider inspirations and innovation (Case Study 6) .

Case Study 4 — Fairtrade and sustainability


There are three contexts within which Fairtrade leads to greater
sustainability: in family livelihoods, in community development, and in the
environment.

Family livelihoods : Many export commodities from developing countries


are subject to volatile – and declining – farm-gate prices. Coffee is a prime
example. After the collapse of the International Coffee Agreement in 1 989,
coffee farmers suffered wild swings in prices paid for green beans. In the
period 2001 –2004, these culminated in a thirty year low, when millions of
coffee farmers around the world suffered severe hardship. In consequence,
in Ethiopia thousands of children were taken out of school; fathers migrated
for work; and the poorest families literally starved. By guaranteeing fair and
stable farm-gate prices Fairtrade ensures that farmers’ basic production
costs are covered and that their families’ needs for shelter, adequate
nutrition, health and education are met. Further, it allows them to plan
in ways unthinkable with free market price volatility. This gives them the
chance to invest and diversify. It also means that they will be less likely to
grow socially harmful crops, such as, in the case of Ethiopia, ‘chat’, a mild
but addictive narcotic.

Community development : On top of the fair price, the Fairtrade system


guarantees a small ‘social premium’. In the case of cooperatives, which
make up the bulk of Fairtrade producer organisations, members decide
democratically how this will be spent, whether on improvements to the
coop’s facilities, e.g. central warehousing and processing sheds, or on the
wider community, e.g. improved water supplies, more classrooms, or clinics.
Fairtrade thus benef ts whole communities, not just because farming families
have more incomes, but also because investments are made (indeed have to
be made, for that is part of the ‘deal’) in business and social development.
This helps to keep communities together, making them more self-reliant, and
less prone to rural to urban migration. Fairtrade producer certi f cation also
Ways forward

1 33

requires both transparency in decision making and the inclusion of women


and other marginalised groups, thereby enhancing grassroots democracy.

The environment : Strict environmental standards are set for certi f ed


Fairtrade producer organisations, to ensure that their members protect
the natural environment and make environmental protection a part of farm
management. Each organisation is expected to facilitate the development,
implementation and monitoring of individual farmers’ operational plans to
help establish a balance between environmental protection and business
results. This is done through crop rotation, cultivation techniques, crop
selection, careful use of fertilisers and pesticides, and, where relevant,
shade production. Each producer organisation ensures that its members
minimise the use of synthetic and other off-farm fertilisers and pesticides,
in the long term replacing them with non-synthetic and on-farm fertilisers
and biological methods of disease and pest control. Not surprisingly many
Fairtrade producers f nd it possible before long to ‘go organic’, if they
are not already, and this enhances their income further. Producers are
also encouraged to minimise the use of energy, especially energy from
non-renewable sources. And it is precisely because Fairtrade gives them
a fair and stable income that farmers are able to put into practice these
measures. When they have no price guarantee they are more likely to be
environmentally destructive, e.g. chopping down shade-trees for f rewood
as happened during the ‘coffee crisis’.

Regular monitoring by Fairtrade Labelling Organisations International,


which sets the social, economic, labour and environmental standards for
Fairtrade producers, ensures compliance in all of these areas, thus ensuring
long term sustainability.

(Source: Human, J. Cumbria Fair Trade Network)

Case Study 5 — The value of the sustainable crafts

This is not a William Morris style Arts and Crafts revival but a rediscovery of
the sense behind traditional methods and practices.

Dry stone walls can be more expensive to build than conventional walls or
fences due to the time taken to build them. However, the bene f ts to the
environment, the community and to subsequent generations mean that the
use of a dry stone wall as opposed to any other form of barrier makes it very
sustainable in the long term.
A Handbook for Sustainable Development
134

Over 200 years ago many dry stone walls were built using stone found
littering f elds or quarried from the ground nearby. These walls, as today,
are built to last through all weathers, allowing for natural movement in their
construction. Dry stone wallers and farmers today may have to repair a gap
in a wall that has stood for around 200 years and because no mortar has
been used the repair is made using the original stones. Wildlife f ourishes in
dry stone walls – small mammals and birds f nd shelter; mosses and lichen
thrive. The beauty of a dry stone wall is not solely in its appearance but
in the fact that it is constructed of natural materials from the immediate
environment; nothing is brought in except, perhaps, the skill of the waller.
However, in areas where dry stone walling is valued wallers do not have to
travel far for their work.

Forty years ago there was a concern that the skills needed to at least
maintain Britain’s 1 25000 miles of existing dry stone walls were being lost
to the older generation. The Dry Stone Walling Association has helped to
turn this situation around and can now provide a professional list of certi f ed
dry stone wallers from every region where dry stone walls (or dykes) exist.
Stone can usually be sourced from a local quarry for building a new wall or
garden feature. Dry stone walling has emerged from a craft to an art form
– bringing the skill and the beauty of the work to new audiences, leading to
more people valuing the ‘ordinary’ dry stone walls.

(Source: Forecast, R. The Dry Stone Walling Association (DSWA) )

Case Study 6 — Creating a Footprint


… Work began on the Footprint in early April 2006, the f rst straw bale
building in Cumbria, and the f rst to be built by the National Trust…

The vision

… Purpose

• We wanted the building to provide space for a good sized group of


children or adults, that could be easily accessed and f exibly used by all
visitors and which was welcoming and pleasing on the eye.
• We wanted the design to be sympathetic to the existing buildings (which
now house National Trust off ces and a staff f at), and not impose too
much on the natural environment.
• In the longer term, at the end of the building’s natural life (some straw
buildings are in use after more than 1 00 years), we wanted it to leave
Ways forward

1 35

a very small impact. This will be partly achieved through the choice of
construction materials, favouring those that will naturally biodegrade or
can be recycled in the future.

Ecological footprint

We also wanted the building to have a small ecological footprint in the


present. As a concept, ecological footprinting is growing as a resource
management and education tool. Simply put it approximates how much
agricultural or ecologically productive land area it takes to sustain a person
or a group, or in our case, a building. This is based on the use of energy,
food, water, construction materials, lifestyles, transport choices and other
consumables.

To achieve a small ecological footprint, the building materials need to


be from sustainable, realistically renewable resources, or from recycled
materials, so that the impact of construction in the present is reduced. To
cut down on transport these need to be as locally sourced as possible.

We also recognised that our design needed to incorporate good use of


natural light and have excellent insulation, thereby reducing electricity and
heating needs when up and running.

Education

Because the building will be mainly used for education, we also wanted the
construction process and the end result to be a learning project. In doing all
this we wanted to inspire a positive emotional response towards the building
and excite people about achievable, low environmental impact living.

Throughout the construction phase, as our decisions became reality, we


recorded and assessed against our aims, so that the ecological footprint
could be properly def ned and the learning gained in the process shared.

The design

… Hybrid construction

The Footprint is a hybrid construction. The roof is supported by a mix of


load bearing walls and framing. The frame and two portals in the interior
also brace the building. Inside it consists of a single open space of about
2
1 00m with a small store and tea-making area partitioned off. Outside are a
small covered activity area and a covered timber walkway around most of
the building.
A Handbook for Sustainable Development
136

Protected

It is a simple but unusual shape, incidentally like a snow-shoe footprint in


plan design, which is almost elliptical at one end with gently curved walls.
The roof is pitched at 35° to re f ect the pitch of the existing building and it is
extended at one end.

There is quite a large overhang on all sides for protection, but the western
end faces the prevailing weather, so there is a ‘peak’ at that side. The
overhang will also screen direct sunlight in the summer. The total size of the
building is around 250m 2.

Integrated

The southern elevation is glazed, which allows the use of natural light inside,
and gives the feeling of the building being within the meadow and not shut
off from it. There are two doors, and the windows are such that they
maximise solar gain and allow ventilation.

The sense of being part of the site is emphasised further on the south side
with a stepped area from the covered walkway, which curves around the
building, in line with the roof overhang. This will allow direct access to
the meadow and also provide a useful outdoor seating area. The outside
walkways and f oors will minimise erosion.

The northern side is one long wall with a single window, which extends to
provide a sheltered side to the small covered activity area. On the eastern
end there is a straight glazed wall with one door, leading out to the covered
activity area.

The western end is beautifully curved, with four small windows. The site’s
slope requires a platform for the building on this end which is visually
reduced by earth banking and stone facing. At this end, double doors access
the under- f oor space…

The construction

… Straw bale walls

The walls of the Footprint are a combination of straw and glass.

Approximately 380 standard straw bales were needed. These were sourced
from a farm in Yorkshire.
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1 37

This might sound like a lot of ‘straw miles’, given that it is grown nearer to
Windermere, but straw for construction needs to be as strong, as straight
and as tightly baled as possible. The bales also need to be consistent in size
and density, and be dry, with no hint of mould or mildew.

Straw from the east of England grows on even, much f atter land than in the
west and this tends to make it more consistent both in texture and strength;
in 2005 it grew in drier conditions (as is usual) which also helped consistency.

To build with straw it has to be kept dry; no moisture can penetrate during
construction, it’s a disaster if it does.

It must be carefully stored so when the walls were going up a canopy was
erected to keep off the rain from above and from the sides. At the end of
each day the walls were carefully covered and protected until the roof went
on; even then the sides had to be kept dry until they were properly rendered.

The render is lime externally and lime / clay internally, f nished with a lime
based wash.

The main environmental advantages of building with straw are:

• Sustainability: straw is an annually renewable natural material and approx-


imately four million tonnes are surplus to requirements in the UK alone.
• Biogradability: at the end of the building’s life, the straw will biodegrade
naturally, leaving no trace.
• CO 2 emissions : it is estimated that over 50 per cent of all greenhouse
gases are produced by the construction industry and its associated
transport. By using regional sources, we can contribute to a reduction
in emissions through transport. Straw bales don’t need to be f red like
bricks and don’t need cement. Additionally, as a resource, straw has
absorbed and stored CO 2.
• Insulation properties : with almost three times the insulation value of
standard building materials, straw is extremely eff cient at reducing the
heating demands of a building. This means that the soundproof ng is
excellent too. Use of straw means there is no need for environmentally
damaging insulation materials in the walls.

Additionally there are the following ‘approach’ advantages:

• Creativity: straw can be used to make either a very standard common


style building or it can easily accommodate curves and bends in the
walls, and deep alcoves and other features internally that give a building
character and charm.
A Handbook for Sustainable Development
138

• Financial sustainability:or a fancy way of saying it is cheaper in the short


term to build your walls of straw, and cheaper to heat your building in
the long term. Especially cost effective on materials alone and if you
follow the approach below, cost effective on labour too.
• Opportunities for involvement : a straw bale build gives interested parties
such as planners, builders, self-builders, environmental advocates and
local volunteers an opportunity to become involved in a very ‘participant
friendly’ building method which can also become a community project.
The process is well suited to working with non-specialists, and groups
and individuals not normally associated with the construction industry,
and previous experience shows that it can be very empowering for
those involved.

And no, rendered straw walls are not any more f ammable than conventional
walls. In fact recent tests are showing that the burn time of straw walls is
greater than that of bricks.

Nor are they going to attract vermin. Straw is not a food source for mice,
rats or any other small animals, although they really like holes in straw (it is
cosy), which is why it is important for the walls to be properly rendered and
maintained.

Straw walled buildings are also very durable. There are examples in parts of
the US (with a similar climate to the Lake District) of buildings going strong
even after 1 00 years.

(Source: http://www. nationaltrust. org. uk/main/w-global/w-localtoyou/


w-northwest/w-news-projects-st_catherines_footprint. h tm)

Individuals’ roles: what we all can do


Finally, the role of the individual should not be undervalued. Example 21
provides some ideas regarding what we can all do.

Example 21 — Green Mountain Coffee


Coffee and responsible consumption

If you serve, sell, or drink conventionally sourced coffee, try great tasting
Fair Trade Certi f ed™ and Fair Trade Certi f ed™ organic coffees, and
help build that market. If you are already serving, selling, or drinking Fair
Trade Certi f ed™ and Fair Trade Certi f ed™ organic coffees, focus your
Ways forward

1 39

promotional efforts and reach out to consumers with inspiring stories of


hope and justice for farmers around the world. Let us know how we can
help you do that.

Consumer activism can make the difference. Think about where all the
products you purchase come from and the conditions under which they
were produced. Express yourself to the companies that make the products
you purchase. Vote with your dollars.

To learn more about Fair Trade and responsible consumption in general,


check out organizations like Transfair USA (www.transfairusa.org),
United Students for Fair Trade (www.usft.org), Oxfam America,
(www.oxfam.org), Co-op America (www.coopamerica.org), Global
Exchange (www.globalexchange.org), and the Center for a New American
Dream (www.newdream.org). If you are a teacher, work with youth, or are
a concerned parent, check out the GetIt! Curriculum (www.readtofeed.
org), which teaches lessons involving geography, world cultures, history,
journalism, marketing, and critical thinking focused on understanding the
global impact of consumer decisions in the context of cut f owers, bananas,
and coffee. If you invest money or are saving for your retirement, think about
bringing your values into your investment decisions. Ask your investment
advisor about the many options available to socially and environmentally
responsible investors.

What we can all do

• Roasters coffee to help support your local non-prof t organization.


• Send an email to [email protected].
• Institute a sustainable coffee-purchasing program in your local
community organization or government off ces.
• Put public dollars to work in an easy way to help create a better world.

Community partnerships

• Look into revitalizing your local community through innovative programs


like those offered by Business Alliance for Local Living Economies
(www.livingeconomies.org) and Global Community Initiatives (www.
global-community.org).
• Volunteer with a non-pro f t organization in your local community – meet
your neighbours and help increase the quality of life right where you live.
For ideas and information, check out www.pointso f ight.org and www.
unitedway.org.
A Handbook for Sustainable Development
140

• Check and see if your workplace offers a matching donation program. If


they do, take advantage of it. If they don’t, ask why not!

Environmental practices

• Calculate your carbon footprint and learn what you can do to reduce
it – check out www.nativeenergy.com and www.cleanaircoolplanet.org.
• Conduct a home or off ce energy and eco-eff ciency audit – check our
www.eff ciencyvermont.com to see how we do it in Vermont.
• Go organic! Check out www.ota.com and www.nofa.org.
• Support local businesses and your local farmers’ market. Check out
Business Alliance for Local Living Economies (www.livingeconomies.org)
to learn more.
• Look into alternate transportation for work commutes and other
errands. Try public transportation, carpooling or riding your bike. Check
out LocalMotion (www.localmotion.org) and Vermont Ride Share
(www.vermontrideshare.org) to see how they work on transportation
issues in Vermont.
• As always, try to reduce, reuse, and recycle (check your local area for
resources to help you manage your waste stream more effectively)[.]

(Source: http://www. greenmountaincoffee. com)

You may wish to consider the following.

• Are you a beacon for sustainable development?

• Do you share your experience and expertise?

• Do you invest in sustainable development in some way?

• Do you try to keep up to date and consider regularly how you might do

things better?

• Do you identify and explore new practices and opportunities? Are you

innovative and imaginative in sustainable development?

• Do you shape the sustainable development agenda and environment? Do

you inspire others?

References
International Organization for Standardization, The future of the ISO 1 4000
family, a look at new issues , Geneva: International Organization for

Standardization

ISO 1 4000, Environmental management, Geneva: International Organization for

Standardization
Ways forward

1 41

ISO 26000, Guidance on social responsibility , Geneva: International Organization


for Standardization (Working Draft)
Lawrence, F (2007) ‘Pioneering Welsh town begins the transition to a life
without oil’, in The Guardian, Saturday April 7 2007. Available at
http://www.guardian.co.uk/society/2007/apr/07/communities.oilandpetrol
1 42

Chapter 9: Conclusion
The new guidance standard, BS 8900:2006, represents an innovative and
integrated approach to environmental, economic and social issues that now
impact on all organizations. It provides a route map to navigate and simplify the
new landscape that is sustainable development.

For those businesses already committed to sustainable development, this


standard provides a structured and organized framework that will help them
to use their resources and efforts in a more effcient and effective way. Those
businesses that have engaged in environmental management systems, and are
considering sustainable development in its wider context, now have much
clearer guidance on how to go about implementing it.
BS 8900 is an indication of how British and International Standards are
changing and adapting to evolving conditions, both in the workplace and in the
wider environment.

In summary
• BS 8900 is a framework to assist in constructing a coherent, holistic
approach to sustainable development.
• BS 8900 seeks to attract and engage those who are not currently interested
in, or committed to, social responsibility or sustainable activities. It also
aims to help those organizations with social responsibility programmes to
organize these more effectively, and to embed a sustainable approach more
securely throughout the organization.
Conclusion

143

• The distinctive approach is to encourage users to think for themselves,

f
supporting the making of dif cult j udgements, with the aim of creating a

sense of real ownership and commitment.

• The standard signals and, in part, leads a signi fcant further stage in the
evolution of sustainable development practice.

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