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