sustainability in real life€¦ · electronic industry citizenship coalition incorporated, global...

2014

Sustainability in Real Life

An implementation guide for buyers and suppliers

2Sustainability In Real Life: An implementation guide for buyers and suppliers © 2014. Electronic Industry Citizenship Coalition Incorporated, Global e-Sustainability Initiative, EcoVadis. All Rights Reserved.

ContributorsAlcatel-Lucent: Pierre-Louis Frouein Best Buy: Hamlin Metzger Dell Inc.: Jannie Bailey EMC: Katie Schindall EcoVadis: Nicole Sherwin Electronic Industry Citizenship Coalition (EICC): Wendy Dittmer, Julie Schindall Global e-Sustainability Initiative (GeSI)

About the Electronic Industry Citizenship Coalition® (EICC®): The EICC enables and encourages its members to progress towards the EICC vision through a common code of conduct, collaborative efforts and shared tools and practices. www.eicc.info

About Global e-Sustainability Initiative (GeSI): GeSI is a strategic partnership of the Information and Communication Technology (ICT) sector and organizations committed to creating and promoting technologies and practices that foster economic, environmental and social sustainability. GeSI has 36 members representing leading companies and associations from the ICT sector. GeSI also partners with two UN organizations - the United Nations Environment Program (UNEP) and the International Telecommunications Union (ITU) - as well as a range of international stakeholders committed to ICT sustainability. www.gesi.org

About EcoVadis: EcoVadis aims to improve environmental and social practices of companies by leveraging the influence of global supply chains. EcoVadis operates the first collaborative network enabling companies to manage the sustainability performance of their suppliers, across 150 sectors and 95 countries. EcoVadis’ reliable ratings and easy to use monitoring tools allow companies to manage risks and drive eco-innovation in their global supply chains. www.ecovadis.com


Table of Contents

The ICT and electronics industries have collaborated to share clear guidance on how companies can build value in their day-to-day operations from implementing sustainability measures. While this report focuses on ICT and electronics, it aims to provide practical guidance that is applicable to all sectors. We hope to inspire a better understanding and confidence that integrating sustainability and corporate social responsibility (CSR) factors into business operations and strategy is the smartest way forward.

This implementation guide is intended to complement the publication: Sustainability In Real Life: Case studies from the ICT and electronics industries.

Introduction ........................................................................................................................................... 3

Value of a sustainable supply chain ..................................................................................................... 4

Stakeholder Engagement ..................................................................................................................... 5

Materiality assessment ......................................................................................................................... 6

Opportunities in the ICT and electronics industries ........................................................................... 7

Implementing sustainability ..............................................................................................................11

1. Define the material issues for your company ................................................................................................................ 11

2. Prioritize material issues.................................................................................................................................................... 12

3. Leverage supply chain partnerships and stakeholders ............................................................................................... 13

4. Engage employees ............................................................................................................................................................. 13

5. Measure and report on progress ..................................................................................................................................... 13

6. Overcoming challenges ..................................................................................................................................................... 14

References ............................................................................................................................................15

Introduction


Value of a sustainable supply chain

Companies that embed sustainability practices into their operations are shown to:

Reduce operational costs from resource efficiency improvements1

Increase revenue, productivity, quality, and profitability through product and process innovation2 and access to new markets3

Strengthen employee engagement which can result in reduced absenteeism and turnover4, higher productivity and increased profitability5

Minimize environmental risks6, social risks7 and likelihood of negative publicity8 through consistent commitment to sustainability practices

Establish reliable supply chains, enhance relationships and increase levels of trust with customers, suppliers and the broader community9

Once a company has developed a sustainability program for its operations, a logical next step is to engage with suppliers about how they are also operating sustainably. A company’s supply chain represents the largest area of sustainability impacts, particularly for the ICT and electronics sectors which have long and complex supply chains. Therefore, supplier responsibility is crucial to any long-term sustainability strategy.

Sustainable sourcing programs aim to integrate environmental, social, ethical and economic factors into a company’s procurement decisions. The drivers: reduce risk, reduce costs and drive innovation.

Sustainability can provide insights: sourcing and disposal of materials, resource use and disposal, manufacturing processes, labor requirements, logistics and customer behavior.

Implementing sustainable sourcing practices has proved to be a competitive advantage amongst peer companies.10

Motivations for implementing sustainable sourcing practices11


Stakeholder Engagement

Stakeholders are individuals and organizations that have an interest in or an ability to impact the decisions and actions of an organization. By engaging with stakeholders, companies can gain insight into emerging issues, develop opportunities for collaboration, minimize potential risks, access subject matter expertise and identify priority areas for improvements.12

Effective stakeholder engagement programs are centered on issues that are most important to a company, also known as material issues. Material issues “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.”13 Some common stakeholder groups and concerns include:

EMPLOYEES CUSTOMERS INVESTORS

Employees expect to be given a means to express their concerns and to have their voices heard by man-agement. Examples of mechanisms that facilitate worker-management communication include formalized social dialogue structures such as employee committees or grievance mechanisms. Implementing sustain-ability practices that focus on em-ployee well-being including health and safety, labor relations, working conditions, and/or employee career management can increase employee satisfaction. It can also prevent costs associated with high turnover and in-efficiencies due to low motivation or accidents at work.

Customers choose their suppliers based not only on cost and quality, but also increasingly on the responsi-bility and reputation of the supplier. 14 Companies therefore have the op-portunity to differentiate themselves from competitors through their CSR activities, for example through their attention to the environmental im-pacts of their products.

Investors increasingly factor environ-mental and social considerations into their decision-making.15 Investors may require companies to be transparent about and accountable for their CSR activities, including in the supply chain.16 Good CSR performance by a company may lead to lower capital constraints such as cost of equity or debt inability to borrow.17

COMMUNITIES NONGOVERNMENTAL ORGANIZATIONS GOVERNMENTS & POLICYMAKERS

Communities understand that re-gardless of the size of a company, its operations have an impact on the sur-rounding people and environment. In certain situations that impact inhib-its a company’s “right to operate.” For example, awareness in China by local communities of the impacts of haz-ardous discharge from factories has prompted unrest and protests.18 19

Nongovernmental Organizations (NGOS) advocate for one or multiple causes, and may seek environmental, social, governance or transparency improvements from companies. Dia-logue and proactive engagement with these organizations can provide com-panies with external expertise on a va-riety of CSR topics as well as a better reputation and more credibility. For NGOs, engaging with companies may help them achieve their mission.20

Governments & Policymakers are in-creasing regulatory pressure on en-vironmental and social issues such as hazardous materials, human rights, bribery and transparency. Engag-ing with regulatory bodies through public comment periods on pending regulations may enable companies to strengthen policies on social and environmental topics.21


Materiality assessment

A “materiality assessment” maps priorities on a matrix to identify issues of common interest and importance to stakeholders and to the company. Material issues in ICT and electronics industries may vary by the scale and type of operations and productions processes22 as shown by the diversity of identified issues in the example matrices below. The main material topics explored within this report are:

ENVIRONMENT SOCIAL SUPPLY CHAIN ETHICS

• Energy efficiency

• Waste and material use

• Water

• Product end-of-life

• Health and safety

• Worker conditions

• Sustainable sourcing • Corruption and bribery

• Intellectual property

Example materiality matrices

Vodafone: Material Issues23 Samsung Electronics: Materiality Matrix24

The ICT and electronics industries have a strong presence in countries considered “high-risk,” which tend to have limited legislation governing business practices (particularly environmental and social elements), lack of enforcement of regulations and potentially repressive legislation.

Map of social, environmental and ethical risks per country25

The map on the left classifies the social, environmental and ethical levels of risk in certain countries. Country risk is calculated based on an aggregation of indices including the Environmental Performance Index (Yale University Center for Environmental Law), Human Development Index (United Nations), Control of Corruption Index (World Bank), Regulatory Quality Index (World Bank), Rule of Law Index (World Bank), and Voice and Accountability Index (World Bank). High-risk countries tend to lack regulatory enforcement of existing laws or standards, which ultimately leads to higher exposure to social, ethical and environmental risk.


Opportunities in the ICT and electronics industries

The ICT and electronics industries have long and complex supply chains, in which original equipment manufacturers (OEMs) often outsource substantial portions of their production to contract and component manufacturers around the world. Given the intricacy of these supply structures, basic operational risks for both buying companies and their suppliers are high – but so are the opportunities.

The following table explores some of the material issues specific to the ICT and electronics industries and examines how to turn challenges associated with material issues into business opportunities.

Topic Area Challenges Opportunities

ENVIRONMENT

Energy efficiency

• Greenhouse gas (GHG) emissions: the ICT industry’s direct contribution is estimated at 1.3 percent of global GHG emissions.26

• Energy price uncertainty due to vol-atility of oil and gas prices.

• High energy intensity involved in manufacturing, network base stations, data centers and office buildings.

• Energy efficiency upgrades or im-plementation of renewable energies translate into direct cost savings. Ac-cording to a report by the Carbon Trust, in many businesses, a 20 per-cent cut in energy costs can represent the same bottom line benefit as a 5 percent increase in sales.27

• Innovative ICT energy efficient products and services developed through internal research and de-velopment or via collaboration with supply chain partners can lead to eco- or energy-efficient design and be a source of competitive advantage in the marketplace.28

• Smart ICT technologies can help other industries reduce their energy footprints.

• Products powered by renewable energy that are designed for emerging markets can positively impact climate change, reduce the digital divide and provide access to new markets.

Waste & materials use

• Hazardous substances may be used during manufacturing or be con-tained in final products, which may harm human health and the envi-ronment, either when the products are produced, with product use or when they are improperly discarded (see below for more on e-waste and water pollution).

• Scarce and non-renewable re-sources imbedded in products may become more expensive, difficult to physically access or impossible to source if they are not harvested at a product’s end-of-life and put into the supply chain as recycled materials.

• Raw Materials sourcing could create potential disruptions to business con-tinuity (e.g. rare earths).

• Cleaner, less-toxic product design can reduce recycling costs as well as health and safety risks during manufac-ture and recycling phases. Green design can also create product differentiation in a marketplace where consumers are increasingly aware of material toxicity.

• Educating employees about specific concerns of hazardous materials can help reduce or prevent accidents that negatively affect health and the envi-ronment and could subject companies to regulatory fines.

• Potential for “dematerialization” by replacing existing goods and services with virtual equivalents, such as cloud computing that reduces the need for ICT hardware.

• Increasing the percentage of recy-cled materials used in products can reduce raw material costs.



Water

• Water sources are under increas-ing water stress particularly in Asian and Pacific Rim countries29 where an increasing number of IT manufactur-ing are being established.30This poses physical risks (e.g., shortages, quality, flooding), regulatory risks (pricing, regional capacity) and reputational risks (withdrawal or discharge on local communities and ecosystems).

• The most significant portion the ICT and electronics industries’ water footprint is associated with semi-conductor manufacturing. For ex-ample, one manufacturing plant may use approximately two million gal-lons of Ultra Pure Water (UPW) every day31, equivalent to the water use of a city of 40 to 50 thousand people.32

• Around 20 to 50 million metric tons of e‐waste are generated world-wide every year,33 much of which is concentrated with heavy metals (e.g., chromium, zinc, lead, copper, arse-nic) that may leach into groundwater sources if not properly disposed of.34

• Water conservation and efficiency improvements allow companies to reduce dependency on freshwater supplies as well as reduce costs for water use, energy use and wastewa-ter discharge.35

• Partnerships with local govern-ments and other local stakeholders can support better management of re-gional water supplies and protection of local water sources and reduce risk or uncertainty for business continuity.

• e-Waste take back programs sup-port to reduce occurrence of im-proper disposal.

ENVIRONMENT Product end-of-life

• Planned obsolesce of products (e.g., producing consumer goods that rap-idly become obsolete) can increases e-waste.

• The principle of Extended Pro-ducer Responsibility (EPR) chal-lenges companies to address prod-uct end-of-life, yet regulations on EPR are as varied as the countries that have the regulations.

• Recyclers may divert e-waste to developing countries where low cost, improper disposal processes often result in exposure to toxic ma-terial for humans and the surround-ing environment.36

• Design for disassembly by incorpo-rating end-of-life concepts into the product design phase.37

• Reparable products or updatable components with longer life spans can generate reduction in material costs and increase customer loyalty.

• End-of-life recycling partnerships can generate financial value through the sale of components or materi-als usable on the secondary market, thereby reducing the need for newly mined raw materials.




SOCIAL

Health and safety

• Poor ergonomic design of fac-tory lines may increase accidents or worker fatigue, leading to worker ab-senteeism and higher turnover.

• Basic health and safety standards may not be observed in manufactur-ing facilities, leading to avoidable and catastrophic accidents (e.g., blocked emergency exits, aisles, and stair-ways; lack of fire control systems).

• Negative health effects from ICT or electronics products may impact employees during manufacturing or recycling, due to exposure to hazard-ous materials or excessive amounts of heavy metals.38

• Reduction of occupational health and safety issues can increase pro-duction efficiency (e.g., fewer ma-chine shutdowns lower costs and reduce rework).

• Proactive training, awareness and monitoring of health and safety con-ditions can prevent occupational ac-cidents and product recalls.

• Employee use of safety equipment and safety features on manufacturing equipment can reduce the risk of injury.

Worker conditions

• Excessive working hours can nega-tively impact the health and produc-tivity of employees. However, over-time for employees is widespread due to cost (e.g., limited ability to hire additional headcount), delivery time pressures and, in some cases, worker expectations.

• Low-skilled and precarious workers (e.g., migrant, dispatch, student, bonded) may experience unequal treatment compared to full-time, di-rectly hired workers (e.g., regarding wages and benefits, representation, verbal abuse).

• Gender discrimination often exists and may elicit wage inequality, sexual harassment, violence, and other human rights violations.39

• Use of effective tools to manage working hours and monitor em-ployee well-being can result in re-ductions in turnover and absentee-ism. Improved retention can increase quality and productivity, and reduce human resources costs.40

• Management of labor agencies to high social and environmental standards can reduce unequal treat-ment of workers, reducing risk for the company.




SUPPLY CHAIN Sustainable sourcing

• Multiple tiers and subcontracting reduce visibility and can increase the risk of environmental and social issues in the supply chain. Subcontractors may not face customer pressure to follow standards and/or the end cus-tomer company may not be aware of tier 2+ suppliers and their practices.

• Some countries may be more lax in enforcing social and environmental regulations, leading to increased risk of unreported and unaddressed violations.

• Suppliers may not know, under-stand or have the capacity to meet expectations placed on them by cus-tomers using sustainable procure-ment practices

• Suppliers deep in the supply chain (“upstream”) may operate in coun-tries with high risk factors that in-crease supply chain risk for the cus-tomer company.

• Conducting supply chain due dil-igence can help a company assess the potential for a range of risks in its supply chain.

• Increased efficiency and reduced risk can lead to reduction in total cost of ownership.

• Industry collaboration and initiatives often coupled with technology (e.g., supplier databases/assessments) are driving standardized and consistent sustainability improvements across shared supplier portfolios and reduc-ing the cost and resource intensity of doing it independently.

• Integrating sustainability into pro-curement processes (e.g., pre-qual-ification, requests for proposals, supplier scorecards) can increase supplier adoption of sustainability and support innovation.

• Encouraging continuous improve-ment from suppliers and providing capacity building fosters greater sup-plier accountability, reinforces long-term relationships and positions sup-pliers to aim higher than a minimum baseline on sustainability topics.41

• Reduction in negative or illegal supply chain practices (e.g., use of child labor, inappropriate waste han-dling) can reduce brand-related reputa-tional risk and supply chain disruptions.

ETHICSCorruption & intellectual

property

• Corruption and bribery practices may erode employee morale, lead to costly legal actions and damage a company’s brand image.42

• Threats to data security are often unpredictable. The impact on infor-mational assets impact may include loss of availability, integrity and/or confidentiality.

• The protection of patents and value of associated licenses is critical to businesses. Patents have value and legal actions and amicable agree-ments in relation to those patents and licenses can have significant financial impact on a company.43

• Proactive definition of ethical rules applicable to the company and its partners to support due diligence and prevention of the company’s ex-posure to corruption or intellectual property issues.

• Proactively assessing suppliers on ethical management systems and performance (e.g., key performance indicators, stakeholder news such as legal acquisitions, trials, or condem-nations) and addressing ethical risks at an early stage.



Implementing sustainability

This section provides a step-by-step approach to help your company achieve clear and measurable progress towards more sustainable operations.

1. Define the material issues for your companyMaterial issues are unique to each company as they are influenced by the strategic direction of the business, the community and environment in which the company operates, the products and/or services offered, the company’s stakeholders’ priorities and associated supply chains of each party.

Material sustainability issues are based on:

• Alignment with the business strategy and support of the long term business objectives;

• Concern for the company’s stakeholders (employees, shareholders, suppliers, civil society organizations, etc.).

Keep in mind that the significance of issues varies between individual companies even within the same sector. Materiality issues for the ICT sector overall were assessed in 2008 at a sector wide level.22 A few examples of material issues including freedom of expression, accessibility to ICT, and consumer privacy and security may be prioritized differently by service providers, internet/software providers, consumer electronics and electronics manufacturers.

To determine the material issues, ask questions and collect feedback from stakeholders:

How do I put sustainability issues into my business context?

• What are the key drivers of our mission? Are there possible issues that surround those drivers?

• Does the issue have the potential to impact revenue? Brand reputation? Ability to deliver products?

• Does the organization operate in high-risk countries with unique material challenges?

• Do any critical labor issues exist in our operations or supply chain?

• What issues represent major economic, environmental or social impacts or result in financial consequences for our company?

Which stakeholders should I engage?

• Which stakeholders have insight and expertise on issues specific to our company?

• Which stakeholders are most impacted by our company (e.g., employees, community members)?

• Which stakeholders have a financial interest in my company, either directly (shareholders) or indirectly (e.g., purchasers of goods or services)?

Taking steps to determine the material issues associated with your company will narrow your focus on the most meaningful issues to your business or your stakeholders.

Materiality Matrix Template

Significance to Business

Sign

ifica

nce

to S

take

hold

ers



2. Prioritize material issuesWhen proritizing sustainability issues, ensure that the topics chosen align with your company’s business strategies.

One strategy to address material issues is to focus on “quick wins” to build momentum. Then, take steps to address longer-term or more complex issues.

As part of this approach of starting small, consider the following suggestions:

• Begin with projects that require little to no upfront investment. Capture initial savings to invest in future projects.

• Use the “back casting” concept.44 Imagine a successful outcome in the future and ask, “What needs to be done today to reach the successful outcome?”. Gather information about your present situation and then analyze the information to determine a course of action to reach your future goals.

Back casting45

A

DDecide on PrioritiesB

BaselineCurrent State

Awareness & De�ningsuccess

CCreative

Solutions

Visioning

• Take inventory. The process of prioritizing which material issues to address will be different for every company. The following diagram indicates a process. A company may assign numerical values to each of these factors and rate each material issue against each factor. This can provide a quantitative ranking of material issues. Other approaches may prioritize material issues in a more qualitative manner, such as the following materiality matrix, or through company and stakeholder collaboration.

Prioritizing sustainability issues

Alignment with business

strategy

Financial impact

Social impact

Contributes to corporate competitive-

ness

Ability to implement

Importance to stakeholder

groups

Priority Issues

Overall strategy alignment

Relevance to industry

Economic impact

Required investment

Level of social impact

Contribution to community

Differentiation from competition

Demand from customers

Availability and expertise of partners

Use of core competencies

Organizational responsibilities

Addresses stakeholder priorities

Ability to use stakeholder resources as experts in

defining solutions



3. Leverage supply chain partnerships and stakeholdersAn African proverb explains this concept well: “If you want to go fast, go alone. If you want to go far, go with others.”

Further suggestions to leverage supply chain partnerships and stakeholders include:

• Leverage the expertise of diverse organizations, from international NGOs to local trade organizations. Different stakeholders can support businesses by providing tools and resources to facilitate the integration of sustainability into a company’s operations.

• Engage with industry-led initiatives. These initiatives engage companies to collaborate on industry-wide best practices and offer a network of support and resources to help businesses implement sustainability practices. The EICC and GeSI are key organizations for the ICT and electronics industries.

4. Engage employeesA diverse set of employees in various roles should be engaged in the development and implementation of a sustainability strategy. In particular, sustainability strategies have a greater chance of success when fully supported by top management.

When engaging employees on sustainability initiatives, traditional roles can include:

• Top management devises a sustainability strategy that takes into account business priorities and strategy and relevant material issues. To ensure long-term buy-in from employees, it is often a good idea to engage employees from diverse departments of the company. Middle management allocates resources to work on sustainability projects. Without this support, project ownership, implementation and success is unlikely.

• Line workers are key for sustainability project implementation and buy-in, and can also provide ideas for on-the-ground material issues. Local workers have insight into the details of day-to-day operations where improvements can be made. Including them in sustainability projects will increase engagement to help ensure successful adoption, as well as increase worker satisfaction to attract and retain top talent.

5. Measure and report on progressCapturing the business benefits of sustainability projects depends on how well an organization is able to define key performance indicators (KPIs) and establish a system for continuous monitoring and reporting.

As with all goals, the business case should be built around SMART (Specific, Measurable, Achievable, Relevant, Time-bound) objectives to track performance. A well thought-out timeframe and a strong understanding of the nature of the benefits (tangible or intangible) are also crucial for planning and measuring success.

• Use standardized and/or industry-specific tools to define relevant key performance indicators. The most well-known framework for sustainability reporting, the Global Reporting Initiative (www.globalreporting.org), provides voluntary indicators and guidelines for sustainability reporting.

• Leverage operations, finance, quality or other functional departments that have expertise in tracking performance data. The finance function, for example, is central to supporting an organization’s financial data gathering and performance management. Use their capabilities to explore how the organization’s sustainability activities can best be tracked to identify bottom line benefits.

• Set up annual surveys to gauge organizational commitment.

- An employee satisfaction survey can help identify opportunities for motivating employees, training opportunities, factors affecting morale and management issues. Understanding these issues help organizations strategically respond to and make necessary changes to increase efficiency and productivity.

- A customer satisfaction survey can help identify performance improvements, opportunities and blind spots to address different parts of the customer experience.

http://www.globalreporting.org



• Invest in sustainability performance software. Several software packages on the market support organizations in monitoring, measuring and reporting their performance on topics from energy use and carbon emissions to social data. This type of software provides an advanced option for sustainability reporting. Many companies begin their reporting with simple spreadsheets.

• Report on changes in the company’s performance and environment. By being transparent about results of sustainability projects – both internally and externally – companies can demonstrate progress in achieving goals and open opportunities to address challenges. An advanced reporting option is to implement Integrated Reporting, which combines an organization’s financial and non-financial (environmental and social) performance to underscore the relationship between the two areas.

- AccountAbility’s AA1000 Assurance Standard (www.accountability.org) provides a reporting framework that aligns financial and sustainability reporting and assurance.

- The International Integrated Reporting Council (IIRC) (www.theiirc.org) is developing an internationally accepted integrated reporting framework.

These measurements help analyze the results of a project and drive new programs. Additionally, communicating results internally and externally can help keep sustainability visible and a priority for all stakeholders.

6. Overcoming challengesAs with any strategic business decision, there must be a strong value-driven business case to make a change. Organizations often face challenges when implementing sustainability programs for reasons including lack of resources, unclear business opportunities and inability to quantify direct business benefits. This section provides suggestions for overcoming these challenges as well as compelling explanations of the benefits from taking action.

Challenge: Lack of time and resources Suggestion: Start small and integrate into existing practices

The hours required to create sustainability-related policies, implement programs, measure success and continue the improvement cycle can feel prohibitively high. It is possible to overcome this by prioritizing actions, starting small and integrating sustainability into existing practices (e.g., quality management, human rights management, Six Sigma1). Strategic integration into existing operations can maximize both short-term and long-term efficiency gains and cost reductions while also ensuring that changes can be maintained.

Challenge: Defining a clear business opportunity Suggestion: Recognize relevant current activities as having sustainability benefits

Companies may not recognize sustainability as a business strategy, and opportunities for differentiation, reduced costs and improved productivity may not be immediately obvious. However, in many cases companies are already carrying out some aspects of sustainability. For example, companies may reduce costs in ways directly related to decreases in use of energy, water, raw materials, or the production of waste. Companies may also engage workers to hear their opinions in order to make human resources or operational improvements. Build on what may already be in place, tie it to business strategy for maximum coherence and benefits46 and develop a plan to ensure continual improvements.

Challenge: Quantification of business benefits Suggestion: Use SMART goals and measurements, and communicate them

Calculating sustainability benefits is not always straightforward, particularly on non-operational topics (e.g., worker mental health). Start by considering the outcomes the business is looking to achieve, then think about mechanisms for how to measure those outcomes. Establish a baseline from the beginning, and at various steps along the way incorporate impact assessments to refine the approach accordingly. Most importantly, when short-term targets are reached, celebrate them! This will build buy-in and long-term commitment for the big picture sustainability strategy.

1Six Sigma is a set of techniques and tools to drive process improvements. There are two central methodologies: DMAIC (define, measure, analyze, improve, control) for improving existing processes and DMADV (define, measure, analyze, design, verify) for developing new processes.

http://www.accountability.org

http://www.theiirc.org


References

1. Porter, M.E., Kramer, M.R. 2006. Strategy and Society: the Link Between Competitive Advantage and Corporate Social Responsibility. Harvard Business Review. http://hbr.org/2006/12/strategy-and-society-the-link-between-competitive-advantage-and-corporate-social-responsibility/ar/1

2. Porter, M. E., Hills, G., Pfitzer, M., Patscheke, S., Hawkins, E. 2011. Measuring Shared Value: How to Unlock Value by Linking Social and Business Results. FSG. http://www.fsg.org/Portals/0/Uploads/Documents/PDF/Measuring_Shared_Value.pdf

3. Nidumolu, R., Prahalad, C.K., Rangaswami, M.R. 2009. Why Sustainability Is Now the Key Driver of Innovation. Harvard Business Review. http://hbr.org/2009/09/why-sustainability-is-now-the-key-driver-of-innovation/

4. Gibbons, J. 2006. Employee Engagement A Review of Current Research and Its Implications. The Conference Board. http://www.conferenceboard.ca/e-library/abstract.aspx?did=1831 [Subscription Required]

5. Harter, J.K., Schmidt, F.L., Killham, E.A., Asplund, J.W. 2006. Gallup Q12 Meta-Analysis. Gallup Consulting. http://strengths.gallup.com/private/Resources/Q12Meta-Analysis_Flyer_GEN_08%2008_BP.pdf

6. Steer, A., Jenkinson, K. 2013. The New Language of Sustainability: Risk and Resilience. WRI Insights. World Resource Institute. http://insights.wri.org/news/2013/03/new-language-sustainability-risk-and-resilience

7. Aon. 2007. Sustainability – Beyond Enterprise Risk Management. Industry Update: Sustainability. http://www.aon.com/about-aon/intellectual-capital/attachments/risk-services/sustainability_beyond_enterprise_risk_management.pdf

8. Fombrun, C. J., Gardberg, N. A., & Barnett, M. L. 2000. Opportunity platforms and safety nets: Corporate citizenship and reputational risk. Business and Society Review, 105(1): 85-106. http://ssrn.com/abstract=1088404

9. Linich, D., Sarni, W., Tanger, K. 2012. Resilience and Growth through Supply Chain Collaboration. Deloitte Consulting LLP. http://www.deloitte.com/view/en_US/us/Services/additional-services/deloitte-sustainability/f80a6f863597e310VgnVCM3000003456f70aRCRD.htm#

10. Bruel, O., Menuet, O., Thaler, PF., Kromoser, R. 2013. Sustainable Procurement Benchmark: Sixth Edition. AT Kearney. HEC Paris School of Management. EcoVadis. http://www.ecovadis.com/website/l-en/webinars-whitepapers.EcoVadis-13.aspx

11. Bruel, O., Menuet, O., Thaler, PF., Kromoser, R. 2013. Sustainable Procurement Benchmark: Sixth Edition. AT Kearney. HEC Paris School of Management. EcoVadis. http://www.ecovadis.com/website/l-en/webinars-whitepapers.EcoVadis-13.aspx

12. Bhattacharya, C.B., Senkar, S., Korschun, D. 2011. Leveraging Corporate Responsibility: The Stakeholder Route to Maximizing Business and Social Value. pp. 12. Cambridge University Press.

13. Global Reporting Initiative. 2012. Materiality in the context of the GRI Framework. https://www.globalreporting.org/reporting/guidelines-online/TechnicalProtocol/Pages/MaterialityInTheContextOfTheGRIReportingFramework.aspx

14. Natural Marketing Institute. 2012. Understanding the LOHAS Consumer: The Rise of Ethical Consumerism. http://www.lohas.com/Lohas-Consumer15. Roy, H., Gitman, L. 2012. Trends in ESG Integration in Investments. Business for Social Responsibility. https://www.bsr.org/reports/BSR_Trends_in_ESG_

Integration.pdf16. Eurosif. 2012. Procurement: Theme Report – 7th in a series. Eurosif. Bank Sarasin. http://www.eurosif.org/images/stories/pdf/Research/Eurosif_

procurement_report.pdf17. Beiting, C., Ioannou, I., Serafeim, G. 2011. Corporate Social Responsibility and Access to Finance. Harvard Business Review. http://hbswk.hbs.edu/

item/6766.html18. Sudworth, J. 2012.Protest prompts China to cancel Jiangmen uranium plant. BBC. http://www.bbc.co.uk/news/world-asia-china-23298663 19. Perlez, J. 2012. Waste Project Is Abandoned Following Protests in China. New York Times. http://www.nytimes.com/2012/07/29/world/asia/after-

protests-in-qidong-china-plans-for-water-discharge-plant-are-abandoned.html20. C&E Advisory. 2011. Corporate-NGO Partnerships Barometer. http://www.candeadvisory.com/sites/default/files/C&E_Corporate-NGO_Partnerships_

Barometer_2012_Final_0.pdf21. Nelson, J. 2008. CSR and Public Policy. New Forms of Engagement between Business and Government. John F. Kennedy School of Government, Harvard

University. http://www.hks.harvard.edu/m-rcbg/CSRI/publications/workingpaper_45_nelson.pdf22. Global eSustainability Initiative. 2008. The Contribution the ICT Industry Can Make to Sustainable Development: A Materiality Assessment by the Global

eSustainability Initiative. http://gesi.org/portfolio/report/54 (New edition planned for 2014)23. Vodafone. 2012. 2012 Sustainability Report. Material Issues. Permission to reference granted by Paras Shah on April, 2, 2013. http://www.vodafone.com/

content/sustainability/our_vision_and_approach/managing_sustainability/material_issues.html24. Samsung Electronics. Sustainability Report 2013. pp. 23. http://www.samsung.com/us/aboutsamsung/sustainability/sustainabilityreports/

download/2013/2013_Sustainability_Report.pdf25. EcoVadis. 2013. EcoVadis Country Risk (CR) Profiles.26. Global e-Sustainability Initiative. 2012. GeSI’s SMARTer 2020: The Role of ICT in Driving a Sustainable Future. http://gesi.org/portfolio/project/7127. Carbon Trust. 2012. Better business guide to energy saving. http://www.carbontrust.com/media/31675/ctv034_better_business_guide_to_energy_

saving.pdf28. Grant, N. 2011. Being energy efficient is key to being competitive. The Guardian. http://www.guardian.co.uk/sustainable-business/british-gas-energy-

efficiency-competitive-advantage29. Otto, B. 2013. 5 Sobering Realities about Global Water Security. World Resources Institute. http://www.wri.org/blog/5-sobering-realities-about-global-

water-security-130. J. Morrison, Mari. Morikawa, M. Murphy, P. Schulte. 2009. Water Scarcity & Climate Change: Growing Risks for Businesses & Investors. Pacific Institute.

Ceres. http://www.pacinst.org/wp-content/uploads/2013/02/full_report30.pdf31. Fishman, C. 2011. The Dangerously Clean Water Used to Make your iPhone. Fast Company.http://www.fastcompany.com/1750612/dangerously-clean-

water-used-make-your-iphone 32. Howell, L. 2012. Semicondutor Manufacturing Plants can use as much water as a small city. IEEE Spectrum Podcast. Spectrum. http://spectrum.ieee.org/

podcast/semiconductors/design/semicondutor-manufacturing-plants-can-use-as-much-water-as-a-small-city33. United Nations Environment Program. 2006. Basel Conference Addresses Electronic Wastes Challenge. UNEP. http://www.unep.org/Documents.

Multilingual/Default.asp?DocumentID=485&ArticleID=5431&l=en34. Institute of Physics. 2011. ‘E-waste pollution’ threat to human health. Institute of Physics. http://www.iop.org/news/11/may/page_51103.html


References

35. J. Morrison, Mari. Morikawa, M. Murphy, P. Schulte. 2009. Water Scarcity & Climate Change: Growing Risks for Businesses & Investors. Pacific Institute. Ceres. http://www.pacinst.org/wp-content/uploads/2013/02/full_report30.pdf

36. Zoeteman, B. Krikke, H.R., Venselaar, J. 2009. Handling WEEE waste flows: on the effectiveness of producer responsibility in a globalizing world. Springer. http://link.springer.com/article/10.1007%2Fs00170-009-2358-3#page-1

37. Greenpeace. 2009. Guide to greener electronics. Greenpeace. http://www.greenpeace.org/usa/en/media-center/reports/guide-to-greener-electronics-11/38. Bello, I.J, Ijila, P.O. 2012. Exposure to heavy- metals in ICT and electronics equipment: biochemical and environmental implications. Journal of Science

and Science Education, Vol. 3, pp. 78-82. http://josseo.org/_ebooks/Bello%20et%20al%20p78-82.pdf39. Musiolek, Bettina. 2010. Gender equality and voluntary instruments of corporate responsibility in global production networks and supply chains.

INEF Research Paper Series on Human Rights, Corporate Responsibility and Sustainable Development 07/2010. Institute for Development and Peace, University of Duisburg-Essen. http://www.humanrights-business.org/files/musiolek_gender_and_csr_in_global_supply_chains_conclusions_and_recommendations.pdf

40. KPMG. 2013. Business case analysis for responsible electronics manufacturing. KPMG. http://www.idhsustainabletrade.com/electronics-news/investing-in-working-conditions-in-china-is-good-for-business

41. Shift. 2013. From Audit to Innovation: Advancing Human Rights in Global Supply Chains. 42. http://www.shiftproject.org/publication/audit-innovation-advancing-human-rights-global-supply-chains43. UN Global Compact. 2012. Corporate Sustainability With Integrity: Organizational Change to Collective Action. UNGC. http://www.unglobalcompact.

org/docs/issues_doc/Anti-Corruption/GC_for_the_10th_Principle.pdf44. Center for Responsible Enterprise and Trade. 2012. Trade Secret Theft: Managing the Growing Threat in Supply Chains. CREATe. http://www.create.org/

sites/default/files/CREATe_White-Paper_Trade-Secret-Theft_Final-e.pdf45. The Natural Step. 2012. Backcasting. http://www.naturalstep.org/backcasting46. Porter, M.E., Kramer, M.R. 2006. Strategy and Society: the Link Between Competitive Advantage and Corporate Social Responsibility. Harvard Business

Review. http://hbr.org/2006/12/strategy-and-society-the-link-between-competitive-advantage-and-corporate-social-responsibility/ar/1