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The complete guide to improving business performance through sustainable practices: current knowledge, practical skills, real-world insight.
Organizations that prioritize environmental, health, and safety (EHS) issues are well placed to attract better customers, better talent, and today's growing number of socially responsible investors. But, to gain these benefits, companies must choose the right sustainability strategies, and then manage and measure them well. Now, leading business sustainability consultant Peter Soyka offers a complete and actionable guide to driving greater value through sustainability. In Creating a Sustainable Organization, Soyka bridges the disparate worlds of the EHS/sustainability professional and the investor/analyst. Readers will learn what the evidence says about linkages between sustainability and value… how to manage key stakeholder relationships influencing corporate response to EHS and social equity issues… how to effectively manage sustainability throughout the business… how to evaluate sustainability posture and performance from the standpoint of external investors and internal management… how to maximize the influence of organizational actors focused on sustainability, and much more. This book will be invaluable for all environmental, health, and safety decision-makers and professionals concerned with improving sustainability and value; for executives and strategists seeking long-term competitive advantage; for stock analysts evaluating potential investments; and for researchers and MBA candidates currently studying the techniques and potential of corporate sustainability.
Chapter 1 Introduction 1
Major Themes and Messages in This Book 4
A Few Disclosures and Caveats 9
Endnotes 12
Chapter 2 Background and Context 15
What Is Sustainability, and Why Is It Important to Business? 16
Why Sustainability Is and Will Remain Important to U.S. Corporations 22
Where We’ve Been and What We’ve Learned 29
What ESG/Sustainability Investing Is and Why You May Never Have Heard of It 42
Major Factors, Actors, and Trends 44
ES&G Concerns as Key Requirements and Determinants of Long-Term Business Success 47
Implications for Sustainability Professionals and Others Working on Corporate Sustainability Issues 52
Endnotes 54
Chapter 3 ES&G Issues and How They Affect the Business Enterprise 57
Environmental, Health and Safety, and Social Equity Laws and Regulations 57
An Abridged History 58
Corporate ES&G Obligations 70
Legal Liability 80
Stakeholder Expectations and Nonlegal Requirements 82
Costs and Cost Structure 89
Revenue Impacts 93
Organizational Strength and Capability 96
Endnotes 106
Chapter 4 Stakeholder Interests and Influences and the Social License to Operate 109
The Social License to Operate 111
Major Company Stakeholders 115
Typical Stakeholder Involvement in and Influence on Corporate Behavior 129
Endnotes 147
Chapter 5 Managing ES&G Issues Within the Organization 149
Relationships Among and Between EHS, Social, and Governance Issues 150
Effective ES&G Management Structures and Practices 154
Integrating Sustainability into the Company’s “Organizational DNA” 178
Endnotes 185
Chapter 6 Investors and the Power of Markets 187
Market Theory and Underlying Assumptions 188
Who Investors Are and What They Care About 194
Size and Composition of U.S. Capital Markets 197
Disclosure 201
Institutional Investors and Fiduciary Duty 209
Traditional and Emerging Security Evaluation Methods 214
Socially Responsible Investing (SRI) and ES&G Investing 227
ES&G Evaluation and Investing Methods 232
Barriers to ES&G Investing 239
International Situation and Trends 247
Analysts, Rating Agencies, Data Providers, and Other Intermediaries 251
Trends and Potential Game-Changers 254
Summary and Implications 261
Endnotes 263
Chapter 7 The Financial Impact of Effective (or Ineffective) ES&G/Sustainability Management 267
Insights from the Literature 268
Surveys of Corporate and Investor Attitudes and Beliefs 289
Summary and Implications 299
Endnotes 305
Chapter 8 Defining, Measuring, and Reporting ES&G Performance 307
Why Performance Measurement and Reporting Are Crucial 308
ES&G Data, Information, Knowledge, and Insight 308
Major ES&G Data Types and Sources 310
Creating Knowledge and Insight from Corporate and Industry ES&G Information 314
Key Needs and Gaps 321
Sustainability Reporting: Extent of Use 323
Evaluation of Current ES&G Reporting Practices, Limitations, and Trends 327
ES&G Research and Analysis Firms 339
Potential Improvements 351
Endnotes 356
Chapter 9 Making It Happen in Your Organization 359
Creating Sustainable Value for the Enterprise 360
Implications for Sustainability Professionals 369
What It Takes 372
Closing Thoughts 380
Endnotes 380
References 381
Index 393