embedding sustainability mindset in business

© AtKisson, Inc. Systainability Asia 2014 / www.systainabilityasia.com

Embedding a “Sustainability Mindset” for best pracAce, innovaAon, performance, and resilience

Robert Steele – Systainability Asia / AtKisson Group 16 October 2014

Sasin Graduate InsAtute of Business AdministraAon


Systainability Asia / AtKisson Group o  Systainability Asia is a Thailand

based multidisciplinary consulting and training firm with a deep commitment to helping others to achieve long-term sustainable development in an increasingly challenging global environment.

o  AtKisson Group is global collaborative network of professional trainers, consultants, researchers, writers, etc., dedicated to mainstreaming sustainability into common practice.

What we do n  Organisation CSR and sustainability

planning

n  Sustainability assessment

n  Stakeholder engagement

n  Indicator Development

n  Training and consulting

n  Education for Sustainable Development (ESD) training and curriculum development

n  CSR and Sustainability Reporting

www.systainabilityasia.com www.atkisson.com


Current And Past Clients Include: Levi Strauss & Co. • Ernst & Young • Nike • BalAc 21 (the 11 naAons of Northern Europe) • European Sustainable Development Network • Brother, Inc. (Japan) • Earth Charter InternaAonal • Swedish SIDA’s Advanced InternaAonal Training Programs • United NaAons Division for Sustainable Development EgypAan NaAonal CompeAAveness Council • Government of Singapore • Greater New Orleans, Inc. • SEIYU (Japan) • SERDP -‐ Strategic Environmental Research & Development Program (US Government) • Seliger Forum 2010 (Russia) • Sustainable Fashion Academy • States of Queensland, Victoria, NSW, and South Australia • Stockholm County • Sustainable Sea`le • Heinz Endowments • Toyota • UNEP • UNDP • Nile Basin IniAaAve • Bank of Indonesia • Volvo Cars

A global network dedicated to sustainability strategy learning, and inspira6on

Global Affiliate and Associate Network


Contents of the Mini Workshop

ü Exploring “embedded sustainability”

ü The AtKisson Sustainability Framework and Approach

ü Accelerator “taster” Exercise

ü What you can expect in a full Accelerator training course


Exploring “embedded sustainability”


Business Reality is being Reshaped Three emerging market force trends

Declining Resources

Radical Transparency

Increasing ExpectaAon

Media

Employees

Business Value

Adapted from: Zhexembayeva N. and Laszlo C., Embedded Sustainability. 2013.


How should business respond to handle these changes? What is the best

strategy for your business?


Some rules to guide us: A business, organisaAon, community, or society will be sustainable if it…

1.  … understands its own systems, and the systems in which it is embedded;

2.  …. understands and accounts for limits and system dynamics;

3.  … looks for and responds to long-term systemic trends that affect its ability to achieve its goals;

4.  … changes internally to meet and take advantage of external conditions and trends;

5.  … is resilient enough to withstand short-term shocks;

6.  … does not undermine the conditions of its own existence;


Balancing the human and the ecological

People Concerned Corporation

Sustainable Corporation

Unsustainable Corporation

Ecologically Concerned Corporation

EcologicalSustainability

HumanSustainability

Source: Dunphy, D., A. Griffiths, and S. Benn, Organisational Change for Corporate Sustainability. 2003, London, UK: Routledge.


QuesAon? Does your company bolt on sustainability or is it embedded

sustainability?

What is the difference?


Bolt on vs. Embedded Sustainability

Embedded sustainability incorporates environmental, wellbeing, financial governance, and social values into the company’s core business, while balancing shareholder and stakeholder value.1 It requires a fundamental shift across every dimension of the business system

Bolt on Sustainability Embedded Sustainability

Goal Pursue shareholder value Pursue sustainable value1

Scope Add symbolic wins in the margins Transform core business acAviAes

Customer Offer green and socially responsible products at premium prices or with diminished quality

Offer smarter soluAons with no trade-‐off in quality and no social or green premium

Value Chain Mange company’s own acAviAes Manage across the service or product life cycle value chain

Organisa<on Create a special department of sustainability

Make sustainability everyone’s job

Competencies Focus on data analysis, planning, and project management skills

Add new competencies in design, inquiry, appreciaAon and wholeness

Adapted from: Zhexembayeva N. and Laszlo C., Embedded Sustainability. 2013.


Embedding Sustainability requires developing a “Sustainability Mindset” throughout the company’s work force.


“Mindset” (noun) – a set of beliefs or a way of thinking that determines

one’s behaviour, outlook and mental attitude.


Love on the Factory Floor

h`p://www.youtube.com/watch?v=9qrQKA0xMko


Embedded Sustainability… Key points!

ü  Embedded Sustainability is the future of business.

ü  Embedded Sustainability will ensure new behaviours, new products & services, new business models, and new performance outcomes.

ü  Embedding Sustainability entails a whole system approach.

ü  A whole system approach to sustainability requires a shift or change in “mindset” of leaders and employees.

Events / Outcomes

Pa@erns of Behaviour

Systems & Structure

World View / Vision

Mindset


The crux of this challenge is the “how”?

The AtKisson Accelerator is an effective approach and toolkit embedding sustainability

as a whole system (company) approach.


The AtKisson Sustainability Framework and Approach


Goal of the Accelerator toolkit

To engage more and more people, to make more change for sustainability, more effec6vely, and more quickly.


Ac<on

Strategy

InnovaAon

Systems Analysis

Indicators and InformaAon

Understanding Systems Understanding Sustainability

The Accelerator uses the ISIS Method Monitoring and AdaptaAon

Defining Your Sustainability Visions and Goals

INDICATORS: Assess where you are, and where you are headed

SYSTEMS: Figure out why you are headed there, and where you can effecAvely change direcAon

INNOVATION: IdenAfy what changes to make for sustainability

STRATEGY: Plan how to succeed in making change

Then commit to ...


The FoundaAonal Tool . . The Compass An Orientation, assessment, planning and collaborative

action tool for sustainability and transformation


Assist organisations to do all of the following…

Ø  Create better understanding of sustainability

Ø  Create a sustainability vision

Ø  Manage stakeholders in a sustainability process

Ø  Create or manage a set of sustainability indicators

Ø  Create an Overall Sustainability Index

Ø  Assess the sustainability profile of a company

COMPASS is the founda<on of the toolkit

ISIS ACCELERATOR

The Sustainability Compass is designed to accommodate many kinds of differences: cultural, sectorial, geographic, etc. It is also designed to interface well with other common frameworks (e.g. GRI, ISO 26000)


Nature

Society

Wellbeing Economy

The “Economy” Principle: Human socieAes, communiAes, and organizaAons need funcAoning

economies to provide for their needs and to support their aspiraAons.

The “Society Principle”: Social systems should be organized in ways that

promote equity, fairness, resilience, and opportunity for all.

The “Wellbeing Principle”: Human beings have a right to be to be safe, to have access to healthcare, and to have the opportunity for self-‐expression, self-‐development, and a

good quality of life.

The Compass Principles The “Nature” Principle:

The physical and biological limits of Earth’s ecological systems must be

respected.

ISIS ACCELERATOR Built into the Compass approach is a set of core guiding principles about sustainability


The “IntegraAon Principle”: All four dimensions of the Sustainability Compass are

interconnected in a web of cause-‐and-‐effect relaAonships. They are interdependent on each other.

•  The Compass approach is grounded in the science of system dynamics and in general understanding of how complex systems behave.

•  In recognition of this principle, governance and management systems should strive to achieve optimal results across all four Compass Points in an integrated way.


Accelerator “taster” Exercise


The Pyramid works with the Compass and ISIS method

INDICATORS!

SYSTEMS!

INNOVATIONS!

STRATEGIES!

AGREEMENTS & ACTIONS!

What is happening?

Why is it happening?

What changes can we make?

How do we accomplish those changes?

Let’s do it!


Accelerator Exercise Scenario ü  The Phuket New Millennium Hotel is a new 5-star hotel that has already

established itself as a trendy, environmentally friendly, and fun hotel for singles, young couples and families looking for something different from the traditional hotel package and experience. For these guests, the environmental and social ethos and practice are both ingredients in their decision to stay at this property, and also as part of their overall experience.

ü  The hotel CEO would now like to go a step further, and have the hotel differentiate itself as Phuket’s first genuinely Sustainable Hotel, and the leader and model of integrated sustainability for all hotels, not just from the environment side, but also in terms of economic practices, social engagement and responsibility, and guest and employee wellbeing.

ü  You are a member of the newly formed Sustainability Team of Phuket New Millennium Hotel.

ü  The aim for today’s workshop is for the Phuket New Millennium Hotel Sustainability Team (consisAng of 4 Compass Point sub-‐teams) to come to consensus on 2 to 4 key program ideas that will be developed further into an overall sustainability strategy and program for the hotel.


Pyramid Level 0 – Stakeholder Engagement

Who do we involve in the process? What do we mean by sustainability? What are out priorities?

PRINCIPLES"

“OTHER”"

VISION, GOALS, OUTCOMES"

DEFINITION OF SUSTAINABILITY"WHO DO WE INVOLVE IN THIS PROCESS?!

WHAT ARE OUR MATERIAL ISSUES?!

AtKisson ACCELERATOR


Instructions 1.  For the 4 Compass directions, ,

identify 3-4 sustainability materiality issues / aspects that we should consider .

2.  Record these the appropriate Coloured Sticky Notes

Nature = Green

Economy = Blue

Society = Yellow

Wellbeing = Pink

Pyramid Level 0: Compass Framing Material Issues & Stakeholders

Material issues include those topics or issues that have a direct or indirect impact on an organization’s ability to create, preserve or erode economic, environmental and social value for itself, its stakeholders and society at large.



Pyramid Level 1: Indicators

INDICATORS

What is happening? What are the trends? Where are we headed?

Information about critical & long-term trends



Choosing Sustainability Indicators Instructions: §  Identify 1 good Indicator for each of your priority

materiality issues/aspects

§  Make sure to think about who will be engaged with this information (i.e. which stakeholders will be interested in this data?)

Remember: Indicators are measurements and sources of feedback to determine current status and changes in conditions that are relevant to your goals and objectives. (e.g. ensuring Sustainability of our company / organisation)



ISIS ACCELERATOR

Replicate on Post-it Notes and build Level 1

10 minutes

Nature

Issue: Water pollution in surface water sources..

Indicator: Number of surface water sources that meet Class 2 Standards (good water quality).

Example



Comments, QuesAons?


Pyramid Level 2: Systems

Why is it happening? What causes what? What is the most important thing making our trend happen ?

STEP 2: SYSTEMS!

INDICATORS!



How we manage information (indictors) doesn’t allow us to see things as whole systems

One of our biggest sustainability blunders….Traditional indicators such as GDP, cancer rates, and air quality measure changes in one part of a community system as if they were entirely independent of the other parts.

GDP Cancer Rates Air Quality


A sustainability way to understand our indicators is through a systems approach


Pyramid Level 2: Consider Linkages


What are systems?

Systems are … … groups of discrete elements that work together to make a whole.

Systems are bound together by the laws of cause and effect, and governed by flows of informaAon, energy and materials.

Note: People give defini6on to systems based on an idea of what should happen at a given point in 6me. Thus, systems have a purpose or func6on.


Systems Diagramming Exercise

Gladstone Region

Iden6fy one or more important feedback loops that can have implica6ons for long-‐term sustainability in your company

Step 1:


Compass Group System Presentations

v  Identify your central indicator and what is the goal you want to achieve there.

v  Identify the main feedback loops and tell their story

v  Identify the key leverage points for each loop.


IdenAfying your Leverage Point

Gladstone Region

Leverage Points

Figure out how trends, decision-making, and information flows are linked together in multiple cause-effect relationships

Use that analysis to identify the best leverage points for introducing change

Step 1: Step 2:


Finding the Leverage Points for system intervenAon

Leverage points are places in your system map where you can intervene with an projects, program, technology, policy, etc. that will change the system relationships towards the direction that you want and be reflected in your main Indicator.


How do you find a good leverage point?

1.  Look for dense webs of connection

2.  Look for loops

3.  Keep asking, “Okay, but how do we change that?”

4.  If you find reasons you need to add to your system map … that’s good!


Places to Intervene in a System

9 Parameters (numbers / indicators) 8 Material Stocks and Flows (stuff moving around) 7 Balancing Feedback Loops (thermostat-‐style controls) 6 Reinforcing Feedback Loops (growth and change rates) 5 InformaAon Flows (who knows what) 4 Rules (requirements, policies, incenAves ...) 3 The Power of Self-‐OrganizaAon (adapAve capacity) 2 Goals (hierarchies of purpose) 1 Mindsets and Paradigms (core assumpAons) 0 The Ability to Transcend Paradigms (no assumpAons) Source: Donella H. Meadows, “Places to Intervene in a System,” Whole Earth Review, 1997

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Examples of “Places to Intervene …”

Place to Intervene Example Parameters Choice of indicator to report progress

Material Stocks and Flows Choice of fuel, paper, etc.

Balancing Feedback Loops Thermostat setngs, correcAon rouAnes

Reinforcing Feedback Loops Awards programs, bonuses

InformaAon Flows Getng the data to a local newspaper

Rules Law & regulaAon

The Power of Self-‐OrganizaAon “Green-‐bag” lunch discussions

Goals Switch to Renewable Energy!

Mindsets and Paradigms Growth = progress >> Quality = progress

Ability to Transcend Paradigms Philosophical quesAons without answers


Construction of Pyramid Level 2 Systems


Comments, QuesAons?


INDICATORS

SYSTEMS

What kinds of change would be most effective ... for the whole system?

STEP 3: INNOVATIONS

Pyramid Lite Level 3: Innovation


'Innovation' is the successful exploitation of new ideas.

It is also the process that carries them through to new products, new services, new ways of doing things.

De#inition of an Innovation


Innovation: What we do at the leverage points

Gladstone Region


ü  New targets and standards ü  New materials and technologies ü  New controls and feedback

mechanisms ü  New information flows to new

people ü  New rules, policies, incentives ü  New forms of organization,

cooperation, collaboration ü  New models, frameworks,

environments ü  New overarching goals and

visions ü  New knowledge, skills and

capacities ü  New mindsets and paradigms ü  A NEW WILLINGESS TO TRY

NEW THINGS

Adapted from “Leverage Points: Ways to Intervene in a System,” by Donella H. Meadows. Available from www.sustainer.org


Embedded Sustainability, InnovaAon and Performance/ Resilience


Step 1: Review … Review your system diagram again, looking at your identified leverage points and the various key linkages and feedback loops

•  What is your goal at your key indicator?

•  What is it that needs to change that can change everything/

•  What could you do at your leverage points to make that change?


Step 2: Review Best Practice Discuss and share your knowledge and experience of “best practice” innovations that you know about at your leverage point. Brainstorm ideas for initiatives that could be done at your leverage point to improve company’s sustainability based on your system dynamics. Share, combine and consolidate ½ ideas into a new ‘best” idea for achieving your goals.


PYRAMID LEVEL 4 – STRATEGY

STEP 4: STRATEGIES

INDICATORS

SYSTEMS

INNOVATIONS

How do we get buy in for the idea? How do we effectively implement our ideas?


Innovation Diffusion Strategy …

Involves looking at the Innovation itself …


Innovation Diffusion Strategy … Involves looking at the Innovation itself … … but also at the Cultural Context around it.


N - O > CC, or ...

Perceived Value of the NEW Idea

Perceived Value of the OLD Way

Perceived COST of the CHANGE

The Three “Avenues for Action”

The Gilman’s Equation for Innovation Adoption

In other words, for change to occur, the new way has to be so much better than

the old way that it overcomes the perceived cost of making the switch.


Pyramid Level 5 - The Capstone Agreement

Making the Connection to the Real World


Level 5: Compass Group Capstone Proposals

Stage 1: Compass Group Capstone Proposals

Step 1: Each team will discuss amongst themselves how they propose to move their iniAaAve forward in relaAon to the other three Compass Teams’ own iniAaAves.

Step 2: Each Compass Stream team will develop a Capstone Proposal staAng how they can implement their iniAaAve and where and how it can support the iniAaAves of the other three groups.

Remember to Include the following points: –  What acAons they will take –  How their iniAaAve will support the company’s long-‐term sustainability –  Who they will work with (partners and target groups) –  How their iniAaAve will support the other Compass iniAaAves –  How they will monitor and track progress.


Example Capstone Proposals Economy Ini<a<ve Ideas/ strategies •  Rela<onship with Gov/tourism

board – communica<on

Ø  Cross sectoral benefits Ø  Agro-‐tourism coffee plantaAon, help

gov to promote tourism in Indonesia Ø  Uses mulA stakehollder approach Ø  Nature – increase conservaAon Ø  Wellbeing – customer saAsfacAon Ø  Society – increase pride/self-‐esteem

in the community

Nature Ini<a<ve Ideas/ strategies ➤  3R Reduce, Reuse, Recycle ➤  Cul<vate Waste mgmt systems ➤  Ul<mate waste mgmt system

➤  Involve community to increase quality of life and livelihoods

➤  More clean and health in env ➤  Improve company image ➤  Nature – improve habitat ➤  Economy – reduce cost of material

and resource use / image ➤  Wellbeing – increase quality of life

and livelihood ➤  Society – no polluAon / waste /

increase involvewment w/ company


Final Capstone Agreement Wellbeing Ini<a<ve Ideas/ strategies •  Good first impression services Services and design

Ø  Will increase quality of service and be`er

working condiAon Ø  Increase customer experience and

saAsfacAon Ø  Increase customer wellbeing Ø  Economy – create good reputaAon, guest

loyalty, create potenAal new guest and increase revenue

Ø  Nature – create be`er environment and harmony with nature

Ø  Society -‐ create and increase environmental awareness

Society Ini<a<ve Ideas/ strategies ➤  Training for local community to

deliver eco-‐toursim services in line with the resort’s programmes

➤  Provide memorable experience that is fun and safe

➤  Generate income for hotel and local community by adding value to guest experience (buy from local market food and craws)

➤  Add value to other company training or meeAng experience

➤  Nature – by doing eco-‐tourism we are also protecAng nature

➤  Wellbeing – increase awareness and wellbeing of employee and community

➤  Economy – increase revenue


Stage 2: Pyramid Capstone Agreement All 4 Compass Groups develop “one’ single Capstone

Agreement that integrates the four Compass Capstone Proposals that all can support.

The agreement should motivate, inspire and be relevant to

all so that something concrete will follow from this workshop.

Level 5: Compass Group Capstone Proposals


Comments, QuesAons?


WHAT YOU CAN EXPECT IN A FULL ACCELERATOR TRAINING COURSE


AtKisson ISIS Sustainability ACCELERATOR

Tools, Methods and Processes to Support CSR and Sustainable Development


The Accelerator Tools: Applying the ISIS Method

PYRAMID COMPASS

AMOEBA STRATESPHERE

Indicators Assessment

Stakeholders

Training Planning

Teambuilding

Change Innovation

Cultural Shift

Strategic Plan Implementation

Monitor Progress


The Accelerator Tools: Applying the ISIS Method

PYRAMID COMPASS

AMOEBA STRATESPHERE

Indicators Assessment

Stakeholders

Training Planning

Teambuilding

Change Innovation

Cultural Shift

Strategic Plan Implementation

Monitor Progress

... can be used as stand-‐alone applica6ons, or in sequence, as part of a comprehensive program for sustainability


The ISIS Method ... can be adapted to a very broad range of situaAons and

levels, from Beginner (all ages) to Advanced (use of math, models, etc.)

Indicators

Systems

Innovation

Strategy $

Beginning Intermediate Advanced


Corporate Sustainability with Indonesia Business Sectors

•  GOAL: promote sustainability scheme to business community and assist the companies to have long term commitment toward sustainability, measurable progress, and more accountable sustainability report.

Ø  PT ANTMA tbk (mining industry)

Ø  INCO Mining tbk Ø  Losari Eco-Resort & Spa Ø  Indah Kiat Pulp & Paper

Ø  Indonesia Power Ø  Bank Negara Indonesia (BNI)

Ø  Result: All companies were able to develop their own specifically tailored Sustainability indicators and plans/blueprints to support their sustainability performance.

ISIS ACCELERATOR TOOL IN PRACTICE AtKisson ACCELERATOR Case Study


Sustainable Phuket Initiative Sustainability Indicator Framework & Report

Phuket Sustainability Indicator Report was endorsed by the Phuket Governor on 22 November 2013….

Phuket Sustainability Indicator Report SEEKing a Sustainable Phuket

�

Phuket Sustainability Indicator Report 2013

�ͳ�

Why this issue important for Phuket’s Sustainability?

Tourism is one of two mainstays of the Phuket economy, and almost all tourists come to Phuket for its famous white sand beaches and clean, aqua blue marine waters. These natural treasures are directly influenced by coastal development planning, pollution, construction, zoning law enforcement, business licensing, density of vendors, and litter management, to name but a few. If Phuket’s beaches are consumed by litter, extensions of restaurants and bungalows, lounge chairs and umbrellas, vendors and jet skis, the accumulative effect will soon overwhelm nature’s resilience mechanisms. It will not be too long before Phuket will lose the very attributes that its success has been built upon. Not to say that tourism will stop, but most likely the outdoor activity and nature related tourism will be replaced by another type of tourism that we all do not want.

What is the Trend?

The Phuket Marine Biological Center has implemented a coastal environment monitoring program for 23 stations along the coastline of Phuket. Some principal parameters collected for every 2 months include salinity, temperature, pH, dissolve oxygen, suspended sediment, nutrients and total coliform bacteria. The result found that Marine water quality was generally found in good condition, except in some stations and during certain period of time that the quality was in fair or poor conditions.

Possible Sources of Data

Department of Marine and Coastal Resources: Phuket Marine Biological Center, Ministry of Natural Resources and Environment: Pollution Control Department

Nature�Aspect�1� Coastal�Management�/�Sustainable�Beach�Program��

The Challenge: Phuket’s coastal marine environment, particularly its famous beaches and water quality are in a state of degradation and decline.

Our Goal:

Phuket’s coastal environment enjoys continuous excellent water quality, with clean beaches that exhibit a natural condition to a large extent.

Proposed Strategy:

Empower and enable community volunteer groups to take ownership and responsibility for beach conditions and water quality monitoring, and education for fishing fleet on waste proper management.

Sustainability Indicators:

� Marine Water Quality Index (BOD, PH, Fecal Coliform)

� Beach Quality Index (5 star system)

AtKisson ACCELERATOR Case Study


ReflecAons, Comments, QuesAons?


SYSTAINABILITY ASIA / ATKISSON GROUP

www.atkisson.com

www.systainabilityasia.com

[email protected]

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