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- Herausgeber: John Wiley & Sons
- Kategorie: Fachliteratur
- Sprache: Englisch
Understand how Environment, Health & Safety (EHS) and Sustainability are interconnected and take meaningful action
Global in scope, Connecting the Dots provides readers with a concise overview of how EHS and Sustainability intersect and offers immediately actionable activities to bring to their organizations in the context of worker safety, health, and wellbeing and environmental management, connecting the dots between the subject and the professional’s role.
Written with standalone chapters to allow readers to apply relevant topics in situ or in study as needed, each chapter follows a standard format with integrated case studies, examples, and implementation advice. Interviews with leaders in the field and real-world examples of success are included throughout the text to elucidate key concepts.
This book is scalable to the size and nature of a company’s operations, from a small, medium-sized enterprise to a global multinational company, it is applicable to all professionals in the field from the C-Suite to the front-line worker. The impact pathways in the Value: Creation, Assessment, Valuation and Impact Pathways chapter will be of interest to the finance department, the supply chain in the Stakeholder and Stakeholder mapping chapter will interest the procurement professional, and the sustainability strategy and decision-making roadmap chapter could be a focus for the c-suite and enterprise risk team and applicable to procurement, as well as internal audit, corporate communications, investor relations and others.
Written by two veteran industry EHS and sustainability leaders, coverage includes:
- Commonalities and differences in the international taxonomy within the EHS and sustainability disciplines, helping bridge reader understanding and communication across their company’s stakeholder groups
- Integrated business and risk management models related to associated frameworks, standards, assessments, themes, issues, impacts, and materiality
- Discipline processes to operationalize concepts, with the better approach of a Future Fit, Sustainability and Business excellence mindset instead of a compliance mindset
- Implementation and change management, highlighting important cultural and business considerations
Connecting the Dots is an essential guidance and reference resource for all professional readers, no matter where they sit in the value chain or industry sector. The text also serves as an excellent aid for advanced courses on topics such as sustainability and safety, environmental standards, and advanced safety, health and wellbeing management.
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Veröffentlichungsjahr: 2025
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Table of Contents
Cover
Table of Contents
Title Page
Copyright
Foreword
Acknowledgments
Glossary
References
Section I: Key Concepts
1 Introduction
2 The Evolution of Sustainability
Key Sustainability‐Related Milestones
1980s
1990s
2000s
2010s
2020s
Conclusion
References
3 Sustainability and ESG Key Concepts: Sustainability, ESG, the Capitals, Value, Valuation, Impacts, and Dependencies
Corporate Social Responsibility (CSR)
Sustainability
Environmental, Social and Governance (ESG)
The Capitals: Value and Valuation
References
4 The Theory of Change: Inputs, Outputs, Outcomes, and Impacts
Inputs
Outputs
Outcomes
Impacts and Dependencies
Additional Impact and Dependency Examples
Chapter Summary
References
5 Frameworks
Introduction
Consensus Standards
Proprietary Frameworks
Principles
ESG Raters
ESG Rankers
Applicability Analysis
References
6 The Capitals
The Capitals
Social Capital: The Glue That Binds
Intangible Becoming Tangible: Paying a Living Wage and the Capitals
The Capitals and a #TrueNorth Purpose
The Capitals: More Examples of Impacts, Dependencies and Value
Conclusion and Resources
References
7 Emerging Topics
Introduction
Who Is Generally Involved?
Where Is It Interconnected?
Why It Has Value?
References
Section II: Implementation Tools and Resources
8 Beginning the Sustainability Journey
Integrated Sustainability Business Model
Sustainability Culture Change Framework (Framework)
Summary
References
9 The Sustainability Strategy and Decision‐Making Roadmap
Maximizing Impact and Value Through Strategy, Decision‐Making, and Stakeholder Engagement
Leading with Impact: Accessing the Current State of Sustainability
The Roadmap
Case Study
Conclusion
References
10 Stakeholders and Stakeholder Mapping
Introduction
Stakeholder Groups
Stakeholder Mapping
The Stakeholder Engagement
References
11 Benchmarking
Introduction
Peer Groups
Resourcing the Benchmark
Conduct the Benchmark – Competitive Analysis
Conduct the Benchmark – Information Gathering
Process – Analyzing Information
Analyzing the Data
Develop Benchmark Report
Incorporation into Strategic Sustainability
References
12 Materiality
Introduction
Types of Materiality
The Materiality Process
Step 1 – Goal Setting (Otherwise Known as the Purpose and Scope)
Step 2 – Stakeholder Identification
Step 3 – Benchmarking
Step 4 – Key Issue Determination
Step 5 – Engagement
Step 6 – Analysis
Step 7 – Prioritization
Step 8 – Activation
References
13 Value: Creation, Assessment, Valuation, and Impact Pathways
An Introduction to Value Assessment
Social and Societal Value
Communicating Value: Natura's IP&L Report
Value Creation: “The Sweet Spot”
Unpacking a Value Assessment
Impact Pathways
Impact Pathway: Ergonomics Intervention Example
The National Safety Council (NSC) Research
Case Study
Summary
References
14 Disclosures and Reporting
Introduction
Sustainability Reporting Decisions
References
15 Resilience
What Is It
Process
Planet
References
Appendix
Index
End User License Agreement
List of Tables
Chapter 2
Table 2.1 A sampling of capitals coalition members.
Table 2.2 Published ISO sustainability‐related standards.
Chapter 3
Table 3.1 Sustainability and ESG.
Table 3.2 Sustainability: the key to success.
Table 3.3 The future of the EHS professional.
Chapter 4
Table 4.1 Sustainability assessment and implementation tools.
Table 4.2 Definition of impact.
Table 4.4 Differentiating between input, output, outcome, and impact: a DEI ...
Table 4.5 Definition of dependency.
Table 4.6 Stakeholder – impact examples.
Table 4.7 Dependency examples.
Table 4.8 Measuring impact versus activity.
Table 4.9 Questions to get to impact.
Table 4.10 Examples of impact metrics.
Chapter 6
Table 6.1 Influence and the language of business.
Table 6.3 A case for social value creation: a mobile phone company.
Chapter 8
Table 8.1 The #TrueNorth and #TrueNorthTest, integrated into a company's pur...
Table 8.2 Examples of governance structure policies, processes, and procedur...
Table 8.3 Aligning sustainability.
Table 8.4 Getting to “why:” company sustainability leadership questions to c...
Table 8.5. Examples of internal and external stakeholder decision makers.
Table 8.6 A sustainable company: sustainability strategy, program, policies,...
Table 8.7 Integrating sustainability considerations into business decisions....
Table 8.8 Sustainability assessment and implementation tools.
Table 8.9 The interconnection of engagement and empowerment.
Table 8.10 Internal sustainability allies.
Chapter 9
Table 9.1 The objective of sustainability.
Table 9.2 Sustainability assessment and implementation tools.
Table 9.3 Integrated impacts, risks and opportunities (impacts) management f...
Table 9.4 Examples of prioritized risks and impacts.
Table 9.5 Examples of barriers (risk controls).
Table 9.6 The Relationship Between a Corrective Action and Impact.
Table 9.7 Case Study: Influencing decisions: connecting risk management and ...
Chapter 13
Table 13.1 A case for social value: a mobile (cell) phone company.
Table 13.2 Societal benefit (value) of Natura's Amazon initiative.
Table 13.3 Impact and dependency risk mitigation examples (aka impact driver...
Table 13.4 Impact driver definition.
Table 13.5 Monetized impact drivers.
Table 13.6 Key takeaways from the national safety council the new value of s...
Table 13.7 Reputational value of supply chain safety and health initiatives....
Table 13.8 First student case study: aligning on purpose, capability, custom...
List of Illustrations
Chapter 2
Figure 2.1 Key sustainability‐related milestones.
Figure 2.2 UN Sustainable Development Goals.
Chapter 3
Figure 3.1 Dimensions of sustainability (Marquette 2024).
Figure 3.2 ESG issues.
Chapter 4
Figure 4.1 The Sustainability strategy and decision‐making roadmap (Roadmap)...
Figure 4.2 Impacts and dependencies: human and social capital example.
Figure 4.3 Impacts: natural environment and natural capital examples.
Figure 4.4 Dependencies: natural environment and natural capital examples....
Chapter 5
Figure 5.1 Framework types.
Figure 5.2 Relationship between EU reporting frameworks.
Chapter 6
Figure 6.1 #TrueNorth, a company's purpose.
Chapter 8
Figure 8.1 The integrated sustainability business model.
Figure 8.2 The integrated sustainability business model: the sustainability ...
Figure 8.3 The sustainability culture change framework.
Figure 8.4 Aligning purpose, culture, strategy, execution, risk reduction an...
Figure 8.5 The integrated sustainability business model: sustainability asse...
Figure 8.6 The Seabrook sustainability and ESG maturity curve.
Chapter 9
Figure 9.1 Integrated sustainability business model: sustainability strategy...
Figure 9.2 Sustainability strategy and decision‐making roadmap.
Figure 9.3 The Seabrook sustainability maturity curve.
Figure 9.4 Integrated Impacts, risks, and Opportunities management cycle....
Figure 9.5 Integrated impacts, risks, and opportunities management cycle: id...
Figure 9.6 Integrated impacts, risk management cycle: Assessment and Priorit...
Figure 9.7 Sample materiality analysis.
Figure 9.8 Integrated impacts, risks, and opportunities management cycle: ba...
Figure 9.9 Integrated impacts, risks, and opportunities management cycle: ve...
Figure 9.10 Integrated impacts, risks and opportunities (impacts) management...
Chapter 10
Figure 10.1 Stakeholder mapping template.
Figure 10.2 Stakeholder engagement matrix.
Figure 10.3 Stakeholder level of involvement.
Figure 10.4 Stakeholder influence on sustainability strategy.
Figure 10.5 Communications plan sam.
Chapter 11
Figure 11.1 Benchmark assessment process.
Figure 11.2 Advantages and disadvantages of questionnaires.
Figure 11.3 Mock website of sustainability disclosures.
Figure 11.4 Example benchmarking template for scoring environmental stewards...
Chapter 12
Figure 12.1 Definition of materiality.
Figure 12.2 Mutual materiality.
Figure 12.3 The progression of materiality.
Figure 12.4 The generational materiality ranking within the mutual materiali...
Figure 12.5 The profession materiality ranking within the mutual materiality...
Figure 12.6 The materiality assessment process steps.
Figure 12.7 Stakeholders and materiality chart.
Figure 12.8 Sustainability questionnaire example.
Figure 12.9 Communications Plan Sam.
Figure 12.10 Simple materiality matrix.
Figure 12.11 Engineering process incorporation of sustainability principles....
Chapter 13
Figure 13.1 Value creation – “the sweet spot”: philanthropy example.
Figure 13.2 Impact pathways ergonomics example.
Chapter 14
Figure 14.1 The who, what, when, why, and how of sustainability reporting.
Chapter 15
Figure 15.1 Climate change and the EHS professional (2023).
Figure 15.2 Moving beyond carbon at the intersection of environment and heal...
Guide
Cover
Table of Contents
Title Page
Copyright
Foreword
Acknowledgments
Glossary
Begin Reading
Appendix
Index
End User License Agreement
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Connecting the Dots
Environment, Health, Safety, and Sustainability
Kathy A. SeabrookGlobal Solutions, Inc.Mendham, New Jersey, United States
Tanis J. MarquetteSapheyr, LLC.North Wales, Pennsylvania, United States
Copyright © 2025 by John Wiley & Sons, Inc. All rights reserved, including rights for text and data mining and training of artificial technologies or similar technologies.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.Published simultaneously in Canada.
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Foreword
The authors and contributors in Connecting the Dots: Environmental, Health, Safety and Sustainability provide the reader with insight into a critical topic for the early twenty‐first century. Sustainability, ESG (Environmental, Social, and Governance), and CSR (Corporate Social Responsibility) are subjects that corporate leaders and the public have keen interest to demonstrate their commitment and understanding to protect people and the planet. Responsible businesses can demonstrate their value system by deploying the United Nations Global Compact Ten Principles. These principles provide the structure for company’s responsibility in areas of human rights, labor, environment, and anti‐corruption. There are influential drivers for businesses to manage their ESG impacts. They include consumer and investor expectations, risk mitigation, cost savings, access to capital, attract talent, and reputation enhancement. Executives and external stakeholders should continue to assess the role of business in solving the social and environmental ills that confront our planet. Ultimately, effective sustainability integration will allow an organization to achieve its full potential and competitive advantage.
The value of health, safety, and human capital and the relationship to the people side of sustainability is a key consideration. When organizations develop leading health and safety practices, employees are more engaged, productive, and loyal. Leading organizations will consider workplace health and safety as material to their stakeholders. The book describes impact pathways that will demonstrate how safety and health processes and other proactive mitigations positively impact and devise value for workers, communities, and businesses. The value created ultimately uplifts society and will improve the global economy.
Furthermore, human capital equates to an educated and skilled workforce that drives technological advancements and innovation which are key components in sustainable development. Education and training investments enhance workforce capabilities and demonstrate social responsibility and mitigate inequalities.
Climate change effects are a growing concern. An increase in global temperatures influences the hydrological cycle and affects permafrost and glaciers. There is an increasing number of severe weather events, including devastating floods and violent storms. Heatwaves will become more extreme, and droughts will last for extended periods and frequency will increase. Environmental climate risk has major implications to worker and community health issues. These environmental and public health issues may have a financial impact on a company’s ability to supply products and services. Additionally, proactive risk management is a book highlight that conveys the opportunity for physical and transitional risk reduction and leveraging sustainability‐related initiatives.
The book explores critical facets that define responsible business practices and evaluate the concept of materiality which is the framework of decisions shaped by significance. The essence of resilience as an indispensable force amid the dynamic challenges to our global economy is outlined. Connecting the Dots: Environmental, Health, Safety and Sustainability will navigate the landscape of disclosures and reporting, unraveling the importance of transparent communication in fostering trust. The reader will peer into the delicate ecosystem of biodiversity and recognize its pivotal role in sustaining life and the interconnectedness of all living beings. Examining the threads of supply chain is analyzed which aids in the understanding of responsible sourcing and production.
Additionally, the perils of greenwashing are outlined, as the book shines a light on the imperative of genuine environmental commitments amidst a sea of deceptive practices. A challenge for ESG professionals is that many businesses prioritize short‐term financial gains over long‐term sustainability. Quarterly earnings pressure can discourage investment in ESG initiatives with longer payback periods. To foster trust, business must operate to the highest ethical standards. Human capital emerges as a focal point by emphasizing the ethical treatment and development of the workforce as a cornerstone of sustainable business.
Finally, the intricate web of reporting standards and frameworks and how to utilize a structured approach to guide organizations toward accountability is examined. As you proceed through the landmark publication, the reader will gain insight that not only educates but inspires action which will foster a collective commitment to a world where sustainability is not just a goal but a pathway for sustainable communities.
Ultimately, Connecting the Dots: Environmental, Health, Safety and Sustainability describes a comprehensive and systematic way to think holistically and act on challenges confronting all interested parties to promote and advance sustainability and ESG.
Darryl C. Hill, PhD, MBA, CSP
Senior Vice President, Safety and Security
First Student, Inc.
Firstly, I thank the authors, Kathy Seabrook and Tanis Marquette, for giving me the opportunity to contribute via this foreword to their book, it is a real honor.
This is a subject that I have dedicated over 15 years of my life to trying to change the business conversation to be more people centric. As I started pulling together my notes, I realized that this was going to be a real challenge in deciding what to leave out!
Sustainability as a word was drawn to my attention in the late 1990s while working in Environment, Health, Safety (EHS) for a global aluminum and packaging company. At the time it seemed to be an extension of Corporate Social Responsibility incorporating business. I remember some company EHS departments adopting the title EHS and Sustainability. Sustainability was summarized as “People, Planet, Profit” and the idea was to drive profitable and sustainable business taking care of the environment and people. I still think this is still valid.
However, since then the world of EHS has been on a roller coaster involving increasing scrutiny from investors and other stakeholders. Unfortunately, this has resulted in more and more focus on the environmental aspect of sustainability to the extent that many people today associate sustainability only with protecting the environment and nature. Rightfully so, you may say, and to some degree I would agree. By protecting the environment and nature we are not only protecting the other species that live on this planet but also ourselves and maybe prolonging our future. We humans are the source of most of the earth’s environmental challenges … however, we are also the solution.
So, we are right in the center of the sustainability equation and for us to be innovative and creative we must be healthy, safe, and well. This is Maslow’s hierarchy of needs in action. We take care of ourselves and our loved ones and make sure they are safe, often before we take care of others and start to protect the environment. It’s the same at work as it is at home. How can we expect people to be motivated and passionate about their work, protecting the environment if they fear for their safety and health or those of their loved ones?
According to the International Labor Organization 2.93 million people lose their lives every year due to work‐related accidents and illnesses.
The conclusion is evident; a focus solely on the environment and nature and not on people and their health and safety makes no sense.
Stakeholders including investors and rating agencies have come a long way in the past 20 years, and more and more pressure has been put on companies and governments to act to protect the environment. There has been so much focus on environmental management that some companies are highly recognized for their sustainability, even while they continue to have fatalities and serious irreversible injuries and illnesses at work. We carried on working in our silos driven by stakeholders who also had a siloed approach, until the COVID‐19 pandemic changed perspectives. Now the world is waking up to the fact that people‐centered sustainability is vital to creating a win‐win future where people and planet are protected, and businesses thrive. We need to stop working in our silos and help business understand the true value of the people that work for them. Valuing people means taking care of their health, safety, and well‐being while at work.
This book has come at the right time, when we need to break the silos and work together. This book unpacks the interdependency of environment, and people health and safety. It gives direction, toward an integrated world, yet will allow you to adapt the trajectory to your needs and culture.
We are slowly coming full circle in the sustainability agenda back to where we started, with sustainability focused on people as well as planet. Successful companies of the future will certainly be those that have an integrated approach to sustainability; those that do not adapt are unlikely to survive.
Putting people at the center of sustainable organizations involves building bridges and seeking collaboration between EHS professionals, other business functions, and external stakeholders to embed human capital principles into decision‐making at all levels. Marquette and Seabrook, in this book, unpack what sustainability is, identify the stakeholders, and give practical guidance to help readers determine where they are in their sustainability journey, develop their own roadmaps and, through an integrated approach to sustainability, achieve cultural transformation to create an organization that cares for planet and people as well as profit.
Whether you are new to the subject or have been working in sustainability for years, I would recommend this book. It will help you kick start or boost your organization’s sustainability journey by identifying where you are today and where you should be heading tomorrow but above all it will help you put people at the center of this journey.
Enjoy the read #bethehummingbird
Malcom Staves, FIISRM, FIChemE
Global Vice President Health & Safety
L'Oréal
Acknowledgments
To my daughters, Kate and Isabelle, and niece, Erin, amazing women in their own right and without whom I would not understand the importance of family and collectively working toward a better future for all. I love you so very much.
I am very grateful for the many colleagues and friends who have contributed to this book and my sustainability, environmental, health and safety journey over the years. You have inspired me to say “yes” to this hard work, for the benefit of people, workers, communities, society and our planet. Thank you Darryl Hill, Malc Staves, Natalie Nicholles, Mike Wallace, Dave Stangis, Gina Mercurio Brown, Ashok Garlapati, Vic Toy, Jim Howe, David Smith, Sally Swingewood, Nancy Leppink, Zack Mansdorf, Mike Seymour, John Dony, Linda Tapp, Pam Walaski, Fay Feeney, Dee Arp, Martin Cottam, Tom Cecich, Mike Totterdell MBE, Tom Reeves, Mike Oberhill, Kahlilah Guyan, Dr. Georgi Popov, Choke Huckuntod, Brenda Henry, Neil McFarlane, Chet Brandon, Lawrence Sloan, Joanne West, Jan Thomas, Anna Jolly, Olivia Goransson, my co‐author, Tanis Marquette and many others.
Thank you to all those who contributed to this book through interviews and knowledge sharing. We are all part of a bright and collective future! #TrueNorth
Kathy A. Seabrook
To Joel, for your unlimited patience, Nutmeg and Ginger for the days upon days of company, Auntie Suzie, for listening even when none of it made sense, Kianna and Caeden for the endless cheerleading, and Sierra for always checking in and keeping me on task. Your love is my everything.
Thank you to Monica and Jim making my words better.
For my colleagues near and far, this is a cumulation of our work together. We are as we have experienced, as those who have touched us. I am so thankful to have been surrounded by such talented leaders.
And to Meagan and Susan… my bookends in a library filled with titles of every genre and now one of my own. To you, there are no words a memory can’t replace.
Tanis J. Marquette
Glossary
Artificial Intelligence
Artificial intelligence, or AI, is a technology that enables computers and machines to simulate human intelligence and problem‐solving capabilities (IBM
2024
).
Benchmarking
Benchmarking is defined as the process of measuring products, services, and processes against those of organizations known to be leaders in one or more aspects of their operations. Benchmarking provides necessary insights to help you understand how your organization compares with similar organizations, even if they are in a different business or have a different group of customers (ASQ
2024
).
(The) Capitals Approach
In the context of business, a capital is a resource companies can draw upon to operate. These resources can be financial, human, relationship, and natural capital (Howard and Seabrook
2023
). A capitals approach enables companies to understand how their success is directly or indirectly underpinned by nature (natural capital), business relationships (social capital) and people working in their company (human capital), which empowers the company to make decisions that offer the greatest value across these capitals (Capitals coalition
2021
). See
Chapter 3
Sustainability and ESG Key Concepts
for further discussion and examples of how these capitals benefit a company and its value.
Corporate Social Responsibility (CSR)
See
Chapter 3
Sustainability and ESG Key Concepts
.
Dependency
Social and human resources and relationships that a business needs in order to create or sustain business value. Resources and relationships include a skilled, engaged workforce, worker health, value chain reliability and resilience, and a rule of law (Capitals Coalition
2019
).
Environment, Social, and Governance (ESG)
See
Chapter 3
Sustainability and ESG Key Concepts
.
Externality
A consequence of an action that affects someone (something) other than the agent (company) undertaking that action, and for which the agent (company) is neither compensated nor penalized. Externalities can be either positive or negative (WBCSD et al.
2011
). An example of a negative externality is inadequate hazardous waste disposal impacting local water supplies, resulting in public health issues in adjacent communities. A positive externality is reduced water use in a company's operations increases the availability of fresh water to adjacent communities.
Financial Capital
Monetary assets required for a business to provide goods and services. These monetary assets are equity or debt (Investopedia
2024
).
Human Capital
The benefits a company receives from investing in its people. Human capital value comes in the form of skills, knowledge, commitment, and an individual's energy and drive contributed to their work. It is important to clarify that human capital valuation is not about assigning a monetary value on a person (employee's) life. Valuation is determining the qualitative or quantitative value created by the knowledge, skills, and abilities the workforce contributes to a company (Capitals Coalition
2021
). The Organisation for Economic Co‐operation and Development (OECD) defines human capital as the “stock of knowledge, skills and other personal characteristics embodied in people that helps them to be productive” (Organisation for Economic Co‐operation and Development
2023
).
Human Rights
Adopted on December 10, 1948 by the United Nations General Assembly, the
Universal Declaration of Human Rights
set out a list of recognized human rights in the wake of World War Two. The
Declaration
defined human rights as rights entitled to everyone, without discrimination, “regardless of race, sex, nationality ethnicity, language, religion or other status” (United Nations
2024
). Human rights include freedom from slavery and torture, freedom of opinion and expression, the right to education and to work, and the right to life and liberty. June 2022, the International Labor Organization's 1998
Declaration on Fundamental Principles and Rights at Work
(1998) to include “a safe and healthy working environment” as a fundamental principle and right at work. (International Labor Organization
2022
)
Impact(s)
(1) “The effect(s) of organizations' actions on people and the natural environment” (Impact Management Platform
2024
). (2) “A positive or negative persistent change in well‐being experienced by a person, group of people, nature, a business, etc. that occurs as a result of an activity. Impact examples include access to employment and apprenticeships, consumer trust, inequity, community volunteering” (Capitals Coalition
2016
,
2019
,
2021
).
Impact Driver
“A resource that is a measurable non‐product output of a business activity.” An example of a resource is implementing an ergonomic program or forest regeneration project (Capitals Coalition
2019
).
Impact Pathway
“The sequence that links organizations' actions with their effects on people and the natural environment.” (Capitals Coalition
2019
)
Internality
“A persistent change in well‐being experienced by a person, group of people, nature or the company itself that occurs as a result of an activity. That change and resulting impact can be positive, negative, intended or unintended. When the impact is to the company such as its reputation, competitive advantage or financial stability, it is known as an ’internality’” (Capitals Coalition
2019
).
Living Wage
“The minimum income necessary for a worker to meet the basic needs of themself and their family, including some discretionary income” (SHIFT
2023
).
Materiality
Under IFRS, information is material if omitting, misstating, or obscuring, and it could reasonably be expected to influence the decisions that the primary users make on the basis of the financial statements (International Financial Reporting Standards
2024
).
Natural Capital
The benefits that a company receives from nature and its resources. This includes clean air, clean water, biodiversity, nutrient‐rich soil to support crop growth and food sources, and access to raw materials such as wood and precious metals (Capitals Coalition
2016
).
Produced Capital
The flow of benefits that a company receives from investing in machinery and infrastructure. It is typically communicated in monetary terms (Capitals Coalition
2019
).
Resilience
Our ability to withstand and recover is called resilience. The true test of resilience is how well we can bounce back. Resilience is societal, economic, and ecological. Understanding risk and preparing today can help protect the things we care about. Communities can mitigate flooding through natural shorelines, and we can work to understand how chemical and biological changes to our ocean impact marine life and habitat. We cannot overrule Mother Nature, but there are actions that we can take together to build resilient communities and support a healthy ocean, sustainable fisheries, and thriving communities and economies (National Oceanic Atmospheric Administration
2024
).
Social Capital
Benefits that a company receives from the communities in which they operate. These benefits include resources, relationships, trust, and belonging. An example of this occurred during the COVID‐19 pandemic. In some communities, this social connection was very strong and kept businesses viable as a result of the strong relationships and social capital those companies had built up with their workers, communities, and customers over time (Capitals Coalition
2021
).
Stakeholder
A stakeholder is a party that has an interest in the company's success or failure. A stakeholder can affect or be affected by the company's policies and objectives. Stakeholders can either be internal or external. Internal stakeholders have a direct relationship with the company either through employment, ownership, or investment. Examples of internal stakeholders include employees, shareholders, and managers. On the other hand, external stakeholders are parties that do not have a direct relationship with the company but may be affected by the actions of that company. Examples of external stakeholders include suppliers, creditors, and community and public groups (Corporate Finance Institute
2024
).
Sustainable Development
Development that meets the needs of the present without compromising the ability of future generations to meet their own needs. UN World Commission on Environment and Development (
1987
) This includes environment, economic and social impacts. See
Chapter 3
Sustainability and ESG Key Concepts.
Valuation
A representation of value. It is a way of representing something that can influence decision‐making.
Value
The relative importance of something.
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(accessed 10 October 2023).
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Section IKey Concepts
1Introduction
Welcome to an exciting future. Whether you are a health and safety professional expanding your role into sustainability, or a sustainability practitioner looking to hone your skills, this book is for you.
No matter your level of expertise or the maturity of your company, this book will assist you with practical guidance in strategy development, road mapping, action planning, and operationalizing to help guide your organization through its implementation journey.
The sustainability and environmental, social, and governance (ESG) ecosystem is continually evolving. In this book, we have laid out core concepts in Section I that provide a solid foundation from which to apply the implementation tools that follow in Section II. The Sustainability Framework and Roadmap methodologies provide the structure to “future‐proof” you and your organization through effective evergreen strategy development that considers the applicability of appropriate standards and frameworks as well as country‐specific regulations, and stakeholder expectations.
By laying out the foundational tenants of sustainability, this book enables you to identify, assess, manage, and disclose your sustainability impacts, risks, opportunities, and most importantly, to imbed this mindset into decision‐making across the business, thereby enhancing overall performance and resiliency. It can be used to begin your sustainability journey, as a guide for continual improvement, or anywhere in between.
There are many drivers for a company to begin its sustainability and ESG journey. They include customer demand, investor inquiry, or a decision by the board of directors to embrace the preservation of human and natural resources needed for a viable, resilient, sustainable company. For whatever reason, here you are. So, where to start?
Every company is different and poses unique challenges. This differentiation may be by industry sector, internal and external risks, impacts and dependencies, geographic or geopolitical location, customer requirements, business model, and/or regulatory environment. Therefore, a tailored approach to sustainability is required to be successful.
This book will assist you in navigating sustainability and ESG opportunities as well as the challenges. You will find it packed with real‐world examples and insights. We have gleaned the knowledge and expertise from leading experts: Chief Sustainability Officers, VPs of Sustainability, operational leaders, investors, environmental economists, professional organizations, and nonprofit/nongovernmental organizations (NGOs) as well as experts in environmental health and safety (EHS). Through the combination of insights from these subject matter experts, research, and collective work of the authors in sustainability, ESG, and EHS, this book brings a practical approach, strategic framework, implementation road map, and guidance that has led to success for many companies in achieving their sustainability and ESG goals.
We bring together a body of knowledge around sustainability and ESG to inspire practitioners and business leaders alike to seek out the opportunities that abound for their company and to find that seemingly hidden value, across environmental stewardship, social responsibility, and economic contribution. A win‐win for all.
Finally, we trust this book proves to be a valuable tool for you and your company to assist with strategy development, action planning, and operationalizing sustainability and ESG. The guidance and new thinking, such as developing impact pathways, can assist you and your company in identifying and managing material issues, impacts to and dependencies on, that may influence the decision‐making of investors, lenders, insurers, customers, suppliers, regulators, and your workforce.
Enjoy the read; our hope is you will have the tools needed, a framework and roadmap, to advance your company's sustainability and ESG goals. We wish you well as you begin or continue your sustainability journey.
In this world of sustainability, EHS professionals do not need to seek out a seat at the “table”; we are the “table.” EHS is foundational in this ecosystem.
It all starts with the #TrueNorthTest. Are you and your company future fit?
Kathy A. Seabrook and Tanis J. Marquette
2The Evolution of Sustainability
To provide context, this chapter chronicles key sustainability and occupational health and safety (OHS) sustainability‐related milestones since the 1980s. These key sustainability‐related milestones are grouped by decade with descriptions below reflecting forward progress on sustainability and ESG, including the intersectionality of human, social, natural, produced, and financial capital management.
An important observation in these key sustainability‐related milestones is the generational shift in an evolving sustainability mindset and how it is influencing businesses around the world (Global Solutions, Inc. and Seabrook 2024) Figure 2.1.
In his role as corporate director of health, safety environmental protection, and sustainability at GrafTech International Ltd., Chet Brandon shares his experience over the past 10 years with potential and new employee expectations. “The new, younger generations have been raised in a world where society has expectations that businesses will be ethical, provide positive value beyond profit, keep people safe and enhance our communities. They've come to expect, and are vocal about, that. And when we hire them as employees, they bring that expectation with them.” In interviews, Brandon says, “these potential employees want to know the value the company brings to society in addition to profit and enriching stakeholders” (Brandon and Seabrook 2023).
Keep this sustainability‐related cultural shift in mind as you follow the evolution of sustainability through the key milestones highlighted in this chapter.
Key Sustainability‐Related Milestones
Figure 2.1 Key sustainability‐related milestones.
Source: Global Solutions, Inc. and Seabrook (2022, 2024).
1980s
World Resources Institute
The World Resources Institute (WRI) was founded in 1982. It is based in Washington, DC with offices in Brazil, China, Colombia, India, Indonesia, and Mexico and regional offices in Africa and Europe.
According to WRI, their focus is on “research‐based approaches to meet people's essential needs, protect and restore nature, stabilize the climate and build resilient communities” (World Resources Institute 2024). To do this, they are focused on people, nature, and climate, creating lasting change by embracing the motto of “count it, change it and scale it” (World Resources Institute 2024). This motto translates to research and testing evidence‐based approaches in various countries that have large populations of vulnerable people, much of the world's remaining natural landscapes and produce significant greenhouse gas emissions. This geographic focus is key to impact and scaling.
The evidence‐based approaches integrate theories of change, targets, and processes for assessing, improving, and scaling progress on impact. For example, transforming the way food and energy are produced and used or designing cities in a more sustainable way impacting people, nature, and climate. This is measurable impact. In order to affect change and scale around the world, WRI partners and engages with other entities such as the World Business Council on Sustainable Development, World Economic Forum, and the Capitals Coalition.
United Nations (UN)
In 1987, the United Nations World Commission on Environment and Development (WCED) published the groundbreaking Report of the World Commission on Environment and Development: Our Common Future. This report is also known as the Brundtland (Commission) Report, named after former Norwegian Prime Minister Gro Harlem Brundtland, who chaired the WCED at the time (United Nations 1987). In this report, a case was made for sustainable development. Today, the Brundtland report's definition of sustainable development is still relevant, “development that meets the needs of the present without compromising the ability of future generations to meet their own needs” (United Nations 1987).
According to Nitin Desai, a senior adviser to the Brundtland Commission and a key contributor to the report, “the main long‐term impact of the report is that we can no longer talk of economic and environmental policy in separate compartments” (UN Commission on Sustainable Development 2007). While the definition of sustainable development seemed to be focused on the environment, it also incorporates the interconnectivity between society, the economy, and sustainable development. The concepts of poverty, lack of equity and environmental justice, both environmentally and socially, are also imbedded in the construct of sustainable development. According to the Brundtland Report, “the sustainability of ecosystems upon which the global economy depends must be guaranteed. And the economic partners must be satisfied that the basis of exchange is equitable.” The report further clarifies “when relationships are unequal, rooted in dominance of one over another, there is no basis for interdependence, economic development, and the sustainability of nations” (United Nations 1987). This acknowledges and actively recognizes the value and interconnectivity between environmental policy and protection, economic policy and development, and society as a whole, where society incorporates the social dimension of sustainability.
1990s
World Business Council on Sustainable Development
The WBSCD was founded in 1995 as a global coalition of CEOs from 200+ companies around the world. According to WBCSD, its membership has “annual revenues of USD 7 Trillion and spans more than 35 countries and represents 20 major industrial sectors.” Their network also includes national and regional business councils and other organizational partnerships in developing countries.
The purpose of WBCSD is to “advocate for progress on sustainable development … in a world where resources are increasingly limited” (GHG Protocol 2024). It does this through various platforms where companies share sustainable development experiences and best practices. They work with governments, non‐governmental (NGOs), and other organizations.
WBCSD has been a catalyst for many sustainable development projects such as the establishment of the Greenhouse Gas Protocol and the Capitals Coalition and their social and human capital and Natural capital protocols.
GRI
GRI, formerly known as the Global Reporting Initiative, but now only use their acronym GRI, originated in Boston, United States (US), in 1997 as a collaboration between CERES, the Tellus Institute and the UN Environment Programme. The catalyst for GRI's creation was the 1989 Exxon Valdez incident occurring in the Prince William Sound, Alaska, US in 1989. When the Exxon Valdez oil tanker ran aground, it spilled 11 million gallons of oil and, according to the National Oceanic and Atmospheric Administration (NOAA), resulted in “one of the largest environmental disasters in U.S. history” (National Oceanic and Atmospheric Administration 2024). The intent of GRI was to create an accountability mechanism for responsible environmental, social, economic, and governance issues, which resulted in global disclosure standards for these issues (Global Reporting Initiative 2024).
The first GRI global guidance framework was published in 2000 and in 2016, the first sustainability disclosure standards were published as GRI became a formal standards development body. In 2018, the GRI 403 Occupational Health and Safety disclosure standard was published (Global Reporting Initiative 2024). Today, GRI is the most comprehensive set of disclosure standards for sustainability reporters.
Greenhouse Gas (GHG) Protocol
Founded in 1997, the GHG Protocol's purpose is to provide accounting and reporting standards and tools to achieve a “low emissions economy worldwide” (GHG Protocol 2024). Through a 1997 partnership between the World Resources Institute (based in Washington DC) and World Business Council for Sustainable Development (based in Switzerland), the GHG Protocol was established to develop a globally recognized, standardized method to account for GHG emissions. Companies such as BP and General Motors initially worked with WRI to publish a 1998 report called, “Safe Climate, Sound Business.” The report foreshadowed the need for standardized accounting and measurement of GHG emissions. In 2001, the first GHG Protocol Corporate Accounting and Reporting Standard (CARS) was developed and published through a multi‐stakeholder standard development process that included business, nongovernment organizations (NGOs), and governments. Contributors included WWF, Pew Center, Shell, Norsk Hydro, Tokyo Electric and others (GHG Protocol 2024).
Today, the GHG Protocol Corporate Accounting and Reporting Standard is globally recognized and underpins corporate GHG reporting programs around the world. This includes the measurement and management of GHG emissions in public and private sector companies and their value chains, industry associations, governments, and NGOs. The GHG Protocol provides guidance on how to account for GHG emissions throughout a company's value chain, including measuring emissions from electricity and other energy purchases (GHG Protocol 2024).
Finally, the CDP recognizes the GHG Protocol standards when calculating and reporting greenhouse gas emissions within their ecosystem.
2000s
United Nations (UN) Global Compact
The Global Compact was launched in 2000 by Kofi Annan, the Secretary‐General of the United Nations at the time. Envisioned as a global corporate citizenship, sustainability initiative, the Global Compact established 10 principles in the areas of “human rights, working conditions, the environment and anti‐corruption.” They are voluntary, not mandatory. The Global Compact seeks to mainstream these principles into business activities such as strategy, policies, processes, and procedures throughout the world. Signatories to the Global Compact are expected to integrate these principles (United Nations Global Compact 2024a).
According to the UN Global Compact Network UK: 2022 Annual Activity Report, there are more than 20,000 companies and 3,500 nonbusiness signatories based in over 162 countries (UN Global Compact Network UK 2023). Companies such as Starbucks, L'Oreal, Bayer AG, the Coca‐Cola Company, 3 M, Deloitte, Nike and Microsoft are signatories (United Nations Global Compact 2024b).
