Practical Sustainability Strategies

Preface of George P. Nassos xvii  Preface of Nikos Avlonas xxi  About the Companion Website xxiii  Part I Introduction to Sustainability and ESG Concepts 1  1 Urgency to Adopt Sustainability 3  Creation of the Environment 4  Exceeding the Ecological Footprint 5  The Limits to Growth 6  Consumption Factor 9  Conservation of Water 10  The Depletion of Fossil Fuels 12  Climate Change 13  Population Growth 15  The Environment’s Big Four 16  References 17  2 Development of the Sustainability Concept 19  Sustainability and the Triple Bottom Line 20  Advent of Corporate Social Responsibility (CSR) 21  Along Came ESG (Environmental, Social, and Governance) 23  The Sustainable Development Concept Thousands of Years Ago 23  The Next Phase of Sustainability 24  References 24  3 The Importance of ESG Criteria 27  ESG Criteria 28  Environmental Factors 28  Social Factors 29  Governance Factors 29  References 31  4 Legislation Leading to Sustainability 33  United States 33  Clean Air Act (1970) 33  Clean Water Act (1972) 34  Endangered Species Act (1973) 34  Corporate Average Fuel Economy (CAFE) Standards (1975) 34  Security Exchange Commission (SEC) Requirements 34  International 35  Montreal Protocol (1987) 35  Kyoto Protocol (1997) 35  Paris Agreement (2015) 35  Cop 28 36  Going Forward 36  References 37  Part II Sustainable Strategies 39  5 Imbedding the UN Sustainable Development Goals to Achieve Sustainability 41  UN 2030 Agenda 42  The 17 Sustainable Development Goals 43  A Further Look at the SDGs 48  Emergent Technologies 49  References 50  6 Addressing Climate Change 51  Energy: Wind Turbines (Onshore) 52  Energy: Solar Farms 54  Energy: Nuclear Fission and Fusion 55  Energy: Heat Pumps and Geothermal 56  Materials: Refrigeration 57  Materials: Alternative Cement 58  Food: Reduced Food Waste 58  Food: Plant-Rich Diet 59  Women and Girls: Educating Girls and Family Planning 60  Buildings and Cities: District Heating 61  Buildings and Cities: Insulation 62  Land Use: Tropical Forests 63  Land Use: Temperate Forests 64  Transport: Electric Vehicles 65  Transport: Ships 65  Top 20 Solutions 66  Implement Ucapture 66  Create Carbon Tax 67  Net Zero Versus Absolute Zero 68  Adaptation and Resilience 68  References 69  7 The Natural Step 73  The Four System Conditions for Sustainability 75  System Condition 1—Substances from the Earth’s Crust Must Not Systematically Increase in the Ecosphere 76  System Condition 2—Substances Produced by Society Must Not Systematically Increase in the Ecosphere 76  System Condition 3—The Physical Basis for Productivity and Diversity of Nature Must Not Be Systematically Diminished 77  System Condition 4—There MUST Be Fair and Efficient Use of Resources with Respect to Meeting Human Needs 78  Scientific Rationale for The Natural Step 79  The Natural Step Projects 80  Interface—The First Company to Adopt The Natural Step 80  The challenge 80  The result 80  Nike 81  The challenge 81  The result 82  Max Hamburgers 82  The challenge 82  The result 82  The Circular Economy 83  References 83  8 Eco-Effective versus Eco-Efficient 85  Fuel Efficiency 86  Computing Efficiency 87  More Durable Brake Pads 88  Increase Polymer Recycling 88  Reduced Sewage Effluent 89  More Efficient Clocks 90  Cradle to Cradle 91  Step 1—Get Free of Known Undesirable Substances 91  Step 2—Follow Informed Personal Preferences 91  Step 3—Creating a “Passive-Positive” List 92  Step 4—Activate the Positive List 92  Step 5—Reinvention 93  Eco-Effective Versus Eco-Efficient 93  Do Not Take It To the Extreme 94  References 94  9 Dematerialization—or—Servicizing 97  Sell Illumination 99  Sell a Painted Car 100  Sell Floor Comfort and Aesthetics 100  Sell Water Treatment Services 101  More Servicizing Examples 101  Castrol, Inc. 101  Carrier 102  Herman Miller (Coro) 102  References 102  10 The Evolution of the Sharing Economy 103  Generation Share 105  Collaborative Consumption 105  Class Final Projects 106  Medication Delivery 106  Refill Perfume Shop 106  Luggage 107  Home-improvement Paint 107  Nutrient Services 107  Baby Mattresses 108  Seat-Go-Round 108  Bike Helmets 108  Q Card for Better Transportation 109  References 110  11 Adopting Systems Thinking—or—Tunneling 113  System Elements 114  System Interconnections 114  System Function or Purpose 115  Tunneling Through the Cost Barrier 116  Interface Pipe Design 117  Reducing Oil Imports 119  Reducing Carbon Dioxide Emissions 119  Illegal Immigration 120  Sailboat Design 121  Systems Thinking in Action 121  Costco Wholesale and Organics 121  Google and Renewable Energy 122  Subaru and Zero Waste 122  References 122  12 Environmental Innovation Through Biomimicry 125  Abalone 126  Spider Silk 127  Bivalves 128  Rhinoceros 129  Fish-inspired Travel 130  Cheetahs 131  Compact and Efficient Structure 132  Ethanol 136  Color from Structure Rather than Pigments 136  Cricket Sounds 138  Bio-inspired LEDs 139  Lessons from Lavasa 139  Owl Wings Inspire Wind Turbine Blade Design 140  Shaving Razors Inspired by Frog and Cricket Legs 141  Additional Technologies Inspired by Biomimicry 142  Mindful Mining: A Proposal 144  Introduction 144  Business as Usual 145  Business Unusual: Proposed Business Model 145  References 146  13 Base of the Pyramid 149  The Great Leap Downward 150  Electrify the Bottom of the Pyramid 153  Hindustan Lever and Nirma 154  BOP Protocol 155  Initiatives by the World Resources Institute 155  Developing the Bottom of the Pyramid 156  Is the Base of the Pyramid a Mirage? 158  References 159  14 Environmentally Effective Buildings 161  Net-Zero Energy Buildings 168  LEED Project Certification Process 168  LEED Accredited Professional 169  Living Building Challenge 170  World’s Greenest Building 172  The WELL Building Standard 174  Breeam 175  Passive House 175  Other Building Certifications 176  References 177  15 The Development of the Circular Economy 179  Kalundborg Symbiosis 179  Earlier Model 181  Terracycle Introduces “Loop” 182  Close the Loop 182  Designing for the Circular Economy 183  The Ellen Macarthur Foundation 183  Quantity of Waste for the Circular Economy 185  Personal Note 186  References 187  16 The Circular Economy Through Energy Recovery 189  Understanding Waste Management 189  Waste-to-Energy Systems 191  Incineration 191  Combined Heat and Power (Cogeneration) 192  Combined Heat, Power, and Cooling (Trigeneration) 193  Pyrolysis 194  Gasification 195  Anaerobic Digestion 195  Waste to Sustainable Aviation Fuel 196  The Challenges of Waste-to-Energy Initiatives 196  The Future of Waste-to-Energy Initiatives 197  References 198  17 Building Resilience to Climate Change 199  Introduction 199  Interconnectedness of Climate Risks in a Globalized World 200  Case Study Example 1: The Syrian Drought 200  Case Study Example 2: The 2011 Thai Floods 200  Actionable Insight 201  Large-Scale Climatic Shifts 201  Case Study Example 3: Managing Climate Risks Can Enhance License to Operate 201  Actionable Insight 202  Building Resilience 202  Case Study Example 4: Extractives Sector Partners with Government and Communities to Fight Malaria in Mozambique 203  Link to the Iceberg Model 203  Using the Case Study with the Iceberg Model 203  Actionable Insight 203  The Strategy Development Process 203  Actionable Insight 204  Conclusion 205  References 205  18 Emergent Technologies: Pioneering Sustainable Futures 207  Technological Innovations Driving Sustainable Development 208  Clean Water and Sanitation (SDG 6) 208  Affordable and Clean Energy (SDG 7) 209  Industry, Innovation, and Infrastructure (SDG 9) 210  Case Studies: Successes and Challenges 211  (SDG 1): Mobile Banking in Sub-Saharan Africa 211  (SDG 2): Precision Agriculture Technologies in India 211  SDG 3: Telemedicine in Rural China 212  SDG 11: Sustainable Cities and Communities in Chinese Cities 212  The Impact of Smart City Pilots on Clean Energy Development in Chinese Cities 212  Impact of Digital Transformation on Resource Efficiency (SD12) 213  Technologies and the Circular Economy (SDG 12 & 13) 214  Policy Frameworks and Regulatory Considerations 215  Strengthening Institutions (SDG 16) 215  Governance and Transparency 215  Legal and Regulatory Frameworks 215  Fostering Partnerships (SDG 17) 215  Multi-Stakeholder Collaboration 215  International Cooperation 216  Policy Recommendations for Enabling Technology-Driven SDG Approaches 216  Developing Inclusive Policies 216  Technological Equity and Accessibility 216  Challenges and Ethical Considerations 218  Conclusion and Way Forward 218  References 220  Further Reading 222  19 More Sustainability Strategies and “Big Hairy Audacious Goal” 225  Green Chemistry 225  Nanotechnology 228  “Big Hairy Audacious Goal” 233  Washing Machines 233  Toilets 233  Urban Farming 234  References 237  20 Sustainable Strategies and Beyond 239  References 241  Part III Tools and Metrics 243  21 Standards and Guidelines for Managing Sustainability and ESG 245  Need for a Sustainability and ESG Strategy 245  Managing Sustainability and Standards 246  Case Study: Unilever’s Sustainable Strategy 248  Global Reporting Initiative (GRI) and Stakeholders 249  GRI Interpretations of Stakeholder Engagement 250  The Stakeholder Reporting Process 250  United Nations Sustainable Development Goals (UN SDGs) 251  Case Study: General Motors—2022 Sustainability Report and Supplement 252  Report Extract 252  United Nations Sustainable Development Goals (UN SDGs) 252  Sustainability Accounting Standards Board (SASB) 252  Task Force on Climate-related Financial Disclosures (TCFD) 263  International Sustainability Standards Board (ISSB Standards) 263  SEC Climate Rule 264  ESRS European Sustainability Reporting Framework 265  Corporate Sustainability and ESG Trends 266  References 268  22 The Corporation and Its Stakeholders 271  Examining the Stakeholder Concept 271  Stakeholders: Definition—Primary and Secondary Stakeholders 272  Case Study: Campbell Soup Company—2022 Corporate Responsibility Report Extract 273  Stakeholder Engagement 273  Stakeholder Relations and Attributes—Power, Legitimacy, and Urgency 273  Case Study: TD Bank—2022 Environmental, Social, and Governance Report Extract 277  Stakeholder Engagement 277  Balancing Stakeholders’ Expectations 277  Case Study: Canon—2023 Sustainability Report Extract 281  Stakeholder Engagement Approach 281  Materiality Assessment 282  Materiality Matrix 285  Double Materiality 285  Case Study: Unilever—2022 Material Sustainability Issues 286  Materiality Assessment 286  Defining Our Material Sustainability Issues 286  Our Latest Materiality Assessment 287  Phase 1: Issue and Topic Identification 287  Phase 2: Issue Prioritization 287  Phase 3: Strategic Alignment and Disclosure 288  Phase 4: Communicate Materiality Analysis Outcomes 288  Benefits from the Corporation’s Responsible Behavior: The Sustainability (ESG) Debate 288  References 290  23 Sustainability (ESG) Reporting 293  Context of Reports 293  Changes Over the Years 294  2022 Keurig Dr. Pepper Corporate Responsibility Report 295  Approach to Reporting 295  Reporting Standards 295  Materiality 295  Assurance 296  Requests for Information 296  Johnson & Johnson 2022 Health for Humanity Report 296  About This Report 296  Materiality Approach 297  Independent Review and Assurance 297  Acquisitions 298  B Corporation 298  Sustainability in the Supply Chain 299  EcoVadis 299  CSDD-Due Diligence 300  Sustainability (ESG) Reports and Impact Investments 301  ESG Ratings 301  Center for Sustainability and Excellence 2023 Research—ESG Performance and Profitability 303  Case Study: Marks and Spencer Plan A Report 2018, Plan A 2025 and Our Strategy—Helping to Make M&S Special Again 304  Transformation Timeframe 304  Starting Afresh 304  Step One: Restoring the Basics 304  Step Two: Shaping the Future 305  Step Three: Making M&S Special 306  STARS Framework 306  References 307  24 Sustainability and ESG Metrics for Improving Impact 309  Metrics in the GRI Guidelines and ESG Ratings 310  Case Study: ABM 2022 Environmental, Social, and Governance Impact Report 310  GRI Index 311  Ecological Footprint 314  Metrics for Carbon Footprint 315  Life Cycle Assessment (LCA) 316  Balanced Scorecard 317  How Metrics of Sustainability Can be Used (e.g., Assessments and Audits) 317  Case Study: The Hartford—2022 Sustainability Report 318  Sustainable Value and ESG 318  Environment 318  Social | Employees 319  Social | Customers 319  Social | Community 319  Governance 319  Our Sustainability Strategy 319  Metrics and Sustainability 319  References 321  25 Carbon Footprint Reduction and Net Zero 323  World Population and Energy Consumption 323  Energy Consumption and Global Warming 323  Climate Change and Carbon Footprint 324  Carbon Emissions and Net-Zero Carbon Footprint 325  What is Net Zero and How to Achieve it 326  Net Zero Case Study 326  LCA and Measuring Carbon Footprint 327  Greenhouse Gas Protocol (WRI) 328  LCA and Product Labels 329  Cases for Carbon Footprint 330  Carbon Offset and the Gold Standard 332  Carbon-Offset-Projects: India, Clean Biogas for 7000 Families 333  References 334  26 Water Footprint 337  Overview 337  Guidelines for Measuring the Water Footprint 338  Water Footprint and LCA 340  Case Study: Coca-Cola Company’s 2030 Water Security Strategy 340  Nestlé 342  Dole Food Company 343  Water Footprint versus Carbon Footprint 344  References 345  27 Green Marketing and Communication and How to Avoid Greenwashing 347  Green Communication and Greenwashing 347  Green Marketing, Communications, and Sustainability 349  Green Marketing 350  Materiality and Sustainability 350  Guidelines for Green Marketing 351  Accuracy 351  Clarity 352  Sustainable Communications Strategy 354  The Importance of Social Media 357  The Importance of the Company Website 357  References 358  Part IV Epilogue 359  28 Epilogue 361  References 363  Index 365