Part 1 1 Chapter 1: Sustainability in 2020 and Beyond 3 The Drivers: Economics 101 3 Sustainability: Four Big Buckets 5 The Huge Business Opportunity 6 Mixed Signals 7 How to Get Started 8 Chapter 2: Why Bother? 11 Opportunity of the Century 11 Global Risk Review-WEF 13 But Wait-Delhi, Delft, Des Moines 13 Why Have Companies Pursued ESG? 14 The Business Case for Sustainability 15 Investors Speaking Up 16 Customers Speaking Up 18 Approaching the Tipping Point 18 Chapter 3: Terminology-What Does Sustainability Really Mean? 21 The Jargon 21 What Is Sustainability? 22 ESG and the Triple Bottom Line 22 Two Sides of the Coin: Stop and Go 23 From Farm to Fork 24 Today's Sustainability Conversation 26 Chapter 4: What Does Sustainability Mean to Your Industry? 29 The 30,000 Foot View 29 The Common Denominator: More Profit-Less Stuff 30 Tomorrow's Industry Sectors 31 Tomorrow's Industry Sectors-Today 32 Counterpoint: The Skeptics ... 34 Positioning for Growth 35 Chapter 5 : Governance and Leadership: The G in ESG 37 The Situation: Governance and Sustainability 38 Governance: The Key Elements 38 Investors' Dilemma: Failing the 80/20 Rule 40 Governance at a Glance: Tomorrow's Leaders Today 41 The Scorecard: Governance and Leadership 43 Chapter 6: Strategy and Execution: The Missing S in ESG 45 The Situation: Beyond ESG 46 Strategy: The Key Elements 47 The Opportunity: Strategy and Sustainability 47 Strategy and Execution at a Glance: Tomorrow's Leaders Today 49 The Scorecard: Strategy and Execution 51 Chapter 7: Environmental Stewardship: The E in ESG 53 The Situation: Overdose on Environmental Issues 54 Materiality Assessment 54 Environment: The Key Elements 57 Environmental Stewardship At a Glance: Tomorrow's Leaders Today 58 The Scorecard: Environmental Stewardship 59 Chapter 8: Social Responsibility: The S in ESG 61 The Situation: Looking Back-Not Looking Ahead 62 Social Responsibility: The Key Elements 63 The Opportunity: Glass Half Full 64 Social Responsibility at a Glance: Tomorrow's Leaders Today 65 The Scorecard: Social Responsibility 66 Chapter 9: The New ESG Regulators 67 Investors: The New EPA? 67 The Global Regulatory Landscape 69 Private Sector Collaborations 73 The Impact of Millennials 73 Summary 74 Part 2 77 Chapter 10: Introduction to the Corporate Sustainability Scorecard-C-Suite Rating System 79 This chapter outlines: 79 What Is the Corporate Sustainability Scorecard? 79 Why this Scorecard? 80 Who Is the Scorecard Intended for? 81 How Is the Scorecard Structured? 82 The Four-Stage Transformation Model 82 How Should the Scorecard Be Used? 85 Will the Scorecard Change over Time? 86 Organization of Part 2 87 Chapter 11: Vision, Mission, and Values 89 Public Statements 89 Private Actions to Reinforce Sustainability in Vision, Mission, and Values 93 External Recognition 94 How Do Companies Stack Up? 97 Chapter 12: CEO Leadership 101 CEO Engagement with Sustainability 102 Managing Board Agendas 106 Structuring the Sustainability Organization 107 How Do Companies Stack Up? 108 Chapter 13: Board of Directors Leadership 111 Board of Directors Sustainability Structure and Resources 112 Board of Directors' Assurance Processes 115 Board of Directors' Commitment of Time to Sustainability 117 How Do Companies Stack Up? 119 Chapter 14: Goals and Metrics 121 Goal-Setting Process 121 Time Horizon of Sustainability Goals 125 Content and Impact of Sustainability Goals 127 How Do Companies Stack Up? 131 Chapter 15: Culture and Organization 135 Management Accountability for and Attention to Sustainability 136 Key Culture Indicators Related to Sustainability 138 Sustainability Organizations 139 How Do Companies Stack Up? 142 Chapter 16: Stakeholder Engagement 145 Why Engage? 146 With Whom to Engage? 147 What to Engage On? 150 How and When to Engage 152 How Do Companies Stack Up? 153 Chapter 17: Disclosure, Reporting, and Transparency 157 Disclosure of Sustainability Risks, Posture, Programs, and Plans 158 Reporting of Sustainability Progress and Performance 160 Transparency 163 How Do Companies Stack Up? 166 Chapter 18: Strategic Planning 169 Sustainability Positioning and Strategy 170 Business Drivers for Sustainability Within the Company 171 Sustainability Inputs to Corporate Planning Process(es) 175 How Do Companies Stack Up? 178 Chapter 19: Innovation, Research, and Development 181 Role of Sustainability and Innovation 182 Processes and Methodologies 185 Sustainable Innovation Investments 187 How Do Companies Stack Up? 188 Chapter 20: Customers and Markets 191 Sustainability Linkage to Customers 192 Core Approach 193 Shaping Future Market Opportunities 195 How Do Companies Stack Up? 198 Chapter 21: Products, Services, and Solutions 201 Basic Product Positioning 201 The Product Development Process 204 Existing PSS 205 How Do Companies Stack Up? 208 Chapter 22: Environmental Footprint-Operations 211 Managing Purchased Resource Inputs 212 Managing Own Physical Footprint 217 Managing Nonproduct Outputs 218 How Do Companies Stack Up? 221 Chapter 23: Environmental Impacts-Supply Chain 225 Posture and Management Processes 226 Addressing the Most Material Supply Chain Environmental Impacts 229 Nature and Extent of Supplier Sustainability Partnerships 233 How Do Companies Stack Up? 234 Chapter 24: Environmental Impacts-Products 237 Overall Product Stewardship Approach 237 Product Design Process 240 End-of-Life Product Management 245 How Do Companies Stack Up? 247 Chapter 25: Own Operations-Workplace 251 General Workplace Environment 251 Core Workplace Programs 253 Sustainability Capability-Building Initiatives 256 How Do Companies Stack Up? 257 Chapter 26: Supply Chain Social Impacts 261 Posture and Management Processes 261 Addressing the Most Material Supply Chain Impacts 264 Supply Chain Partnerships 266 How Do Companies Stack Up? 267 Chapter 27: Community Investment 271 Community Policies and Programs 272 Community Investments 274 Benefits to Society 275 How Do Companies Stack Up? 277 Chapter 28: Conclusion: Tomorrow's Elite Corporation 281 Fit: Visualizing Success 281 Trim: Decoupling Growth and Profitability from Resource Intensity 282 Resilient: Capacity to Innovate Among Disruptions 284 A Few Words on Climate Change 285 The Path Forward 286 Appendix A: Definitions 289 Index 297
