Kuhn Associates Sustainability Advisors LLC
Sustainable Business News 
 
Volume 2014, Number 4                                                                                         April 2014  
In This Issue
Featured Article
Ideas You Can Use NOW
Calendar of Events
About Us
We help companies throughout the product supply chain create sustainable businesses.

Consulting services
include creating enterprise-level sustainability visions, goals and strategies; re-engineering internal processes to reflect sustainable best practices; maximizing the sustainability of today's complex supply chains and assisting with communicating sustainability information in writing and in media.

Training services include webinars and in-person seminars for large to small groups on topics ranging from GHG accounting to Mastering Supply Chain Sustainability and Social Responsibility. We can custom design training to suit your needs.

Sustainability Tools include Turnkey Solutions sustainability data management software - a cloud-based data collection, management and reporting system designed with supply chain networks in mind.

 

We work in a variety of industries. We are extremely sensitive to clients' budgets and their capacity for change.
 
Whether it's an environmental or social responsibility issue, our team of professionals is ready to help your business. Please contact us to learn how we can help you.
 
Call 212-343-1006 today.

In this fourth newsletter edition of 2014, we explore the issue of materiality as it relates to sustainability - how do you hone in on "what matters" when there are so many pressing issues. Getting a handle on materiality can really pay off, so we provide some insight into this increasingly-important issue.

In our Ideas You Can Use Now section, we provide some specific tips about getting started with materiality.  

 

Finally, in the Calendar section, we suggest some sustainability-related events in the coming few months that you might want to investigate.

   

Happy reading!    

 

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Feature Article: Materiality and Sustainability
 

As organizations continue to do work in sustainability, they are realizing that the broad scope of this subject area - from environmental degradation caused by disposal of products to labor rights in supplier factories - creates a serious challenge. Companies, borrowing a tool from the financial world, are turning to the concept of "materiality" to help them address this challenge. They are adopting this approach because introducing materiality into the sustainability equation provides focus, deploys resources appropriately and helps companies finesse the "narrow vs. deep" aspect of sustainability work. It's also the trend in sustainability reporting, with the introduction of the Global Reporting Initiative's G4 Guidelines.

But what is materiality? Actually, it's a concept akin to relevance or significance. In the context of sustainability, it's also tool that introduces two important questions when looking at the vast realm of environmental, social and economic issues:
  • to whom is the issue relevant? (which of the various persons, organizations or groups in the stakeholder universe care about this, and how much do they care?)
  • what impact is at issue? (which particular environmental, social or economic concern  is at hand?).

The answers to these questions are particular to one company at one particular point in time. So, there is no one universal definition of what is "material" in a sustainability context (although, over time, we expect to gain some consensus on what is material to a particular industry).  

 

Degrees of materiality are usually determined by the use of a "materiality assessment," a four-part process that involves:

  • creating a complete list of stakeholders
  • prioritizing the stakeholder list according to influence
  • creating a complete list of environmental, social and economic impacts related to the company, its industry and the geographies in which it or its suppliers operate
  • "vetting" this list of issues against the prioritized stakeholders.

The materiality assessment is part art and part science. Outside experts and facilitators can help immensely because of their experience and independence.

 

A common product of the materiality assessment process is the materiality "map." The materiality map plots the environmental, social and economic issues on "Influence" and "Significance" axes. Each issue lands in either a "high priority," "keep watch," "unknown risks" or "low value" quadrant. The map's a great visual representation of possible workstreams that can guide managers tasked with sustainability strategy, measurement and reporting. It lends focus to a complex area of work. Keep in mind that the assessment and map need to be updated on a regular basis to reflect the shifting nature of business and sustainability.

 

Materiality is a growing discipline in sustainability. Its influence on sustainability strategy, management and reporting will be long standing ... and for good reason. Anyone working in sustainability would do well to get a handle on materiality.

>> Get in touch if you'd like more details; I would be happy to share more insights. Call me at 212-343-1006 or email me at robert@kuhnassociatesllc.com

 

Hydropower
Ideas You Can Use Now!
 
Our Feature Article discussed the role that materiality is playing in helping companies gain focus in the complex world of sustainability. The materiality assessment is the primary tool practitioners use to determine what's material in any one specific instance. Here are some tips about this four-step process:
  • the stakeholder scan needs to cast as wide of a net as possible initially. Assemble a cross-functional team to brainstorm. Groups we have seen neglected: academic institutions (source of future talent); associations (often have influence on policy); unions (influential in many industries); diverse suppliers (sometimes don't meet a spend threshold). 
  • prioritizing stakeholders by "influence" requires a determination of (a) whether the stakeholder influences your company, your industry or a geography where you operate, sell or have supply chain operations and (b) whether your company, your industry or another factor in your control influences that stakeholder
  • vetting issues can be done using one of several methods:
    • surveys and questionnaires (remember to allow for open-ended answers)
    • focus groups
    • team-led workshops 

You might seek the assistance of an independent third-party or expert in your first materiality assessment. Their experience in facilitation and knowledge of the issues can reduce the costs and time required to complete this valuable project.

 

>>If you have questions or comments on these or other "best practices" in sustainability, please contact us. We have the ability to craft solutions for you. Contact us now by calling 212-343-1006 or emailing us at info@kuhnassociatesllc.com.

Calendar of Events
Here are a few of the many interesting sustainability events happening in the coming months that we think are worthy of your attention.

  

FEATURED EVENT June 11 - 12, New York, NY - AGRION Disrupt 100+ will assemble 100+ leading innovators and 600 managers of large companies to discuss sustainability, renewable energy production and storage, smart cities, resilience, and more. 
Visit http://www.agrion.org/new-york2014/ for details.

 

 

May 5 - 7, Las Vegas, NV - ISM2014 International Supply Management Conference will bring together the biggest names in procurement for three days of networking and best-in-class education. Robert Kuhn, President of Kuhn Associates Sustainability Advisors, will present a session on the role of supply chain management in sustainability reporting on Wednesday, May 7. Go to https://www.ism.ws/conferences/content.cfm?ItemNumber=23911 for registration details.

 

May 20 -21, Washington, DC - Sustainable Purchasing Leadership Council 2014 Annual Meeting hosts workshops and plenaries for leaders from government, industry, academia, standards organizations and NGOs for two days of collaboration on the creation of a multi-sector guidance, benchmarking, and recognition program for institutional leadership in sustainable purchasing. Visit the official website at http://www.purchasingcouncil.org/meeting14/.

 

June 2-5, San Diego, CA - Sustainable Brands Conference 2014 convenes sustainability, brand and innovation professionals. The goals of the conference are to amplify current leadership and success surrounding innovation for sustainability, to educate business leaders throughout an organization about how they can contribute to a more sustainable brand, and to grow the market for business solutions that can help companies reduce environmental and social impacts and play a more positive role in the lives of their stakeholders. Visit http://www.sustainablebrands.com/events/sb14 for more information. 

 

June 13 - Redwood City, CA - 2014 Silicon Valley Energy and Sustainability Summit brings together more than 300 business, nonprofit, and public sector leaders to share best practices, lessons learned and practical solutions. Attendees will learn how to employ the latest technologies and practices to create value and build resiliency in their business and learn what they can do on a practical level to prepare for a changing landscape. Go to http://svlg.org/policy-areas/energy/2014-silicon-valley-energy-and-sustainability-summit to register and for further info.

 

October 27 - 30, San Francisco, CA - VERGE San Francisco is this year's installment of GreenBiz's world-renowned VERGE conference. The event brings together the world's largest companies, technology innovators, and cities to create a broad ecosystem of players to break down silos and create opportunities for business. Go to http://www.greenbiz.com/events/verge/2014/10/san-francisco for more info.
Thanks for reading! Please contact us today to discuss anything you've read here, suggest a topic for a future Newsletter edition or learn how we can help you build a more sustainable business.

Call 212-343-1006 or email us at
info@kuhnassociatesllc.com for more information.

Sincerely, 

Robert W. Kuhn, President and Senior Advisor
Kuhn Associates Sustainability Advisors LLC
www.kuhnassociatesllc.com
Copyright 2014  Kuhn Associates Sustainability Advisors LLC
Reproduction without prior permission prohibited.