Sustainability Metrics

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Environmental and Human Rights Assume a New Urgency for Boards

The G7 summit in June of 2015 and the G20 meeting in November both upheld the idea that businesses have a responsibility to respect environmental and human rights principles. As such concerns take center stage, business leaders must recognize their role in navigating the new regulatory environment. As environmental and human rights risks rise in importance, board members are at risk of being seen as negligent if they fail to ensure that their companies comply with the G20/OECD Principles and the standards to which the Principles refer.

Image courtesy of Novo Nordisk A/S.

How to Become a Sustainable Company

Trends suggest that the public is no longer satisfied with corporations that focus solely on short-term profits. A recent study comparing companies that adopted environmental and social policies with companies that didn’t supports this view. However, few companies are born with a commitment to sustainability. To develop one, companies need leadership commitment, an ability to engage with multiple stakeholders along the value chain, employee engagement and disciplined mechanisms for execution.

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The Change Leadership Sustainability Demands

Sustainability initiatives can’t be driven through an organization the way other changes can. The authors’ research indicates that successful sustainability initiatives tend to evolve through three distinct phases. Phase 1 involves making the case for change, Phase 2 entails translating vision into action and Phase 3 is about expanding boundaries. Each stage requires different organizational capabilities and leadership competencies.

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Making Sustainability the Real Thing

Jeff Seabright, The Coca-Cola Company’s vice president of environment and water resources, explores how the beverage giant is moving to greater sustainability.

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