Wednesday, February 24, 2010

Connecting the Dots - Working the Big Picture - Part Two

Continuing with the recap started in my previous post, the engagement shifted into execution mode. A true myriad of tasks ranging from data gathering, reformatting and uploading to project planning for GRI reporting, to overall engagement management. In hindsight, the data component was not particularly difficult to contend with once we understood the connection between consumption types, units of measure, emission factors, and output unit type. The approach was generally the same for each consumption type or activity. Ensuring alignment between what units the data was available in, what the relevant emission factor appropriate for that consumption and unit type, and output units desired was a challenging aspect. Obtaining current and accurate emission factors for the breadth of consumptions was a challenge. They do not simply exist in an easily accessible manner. One has to do a fair amount to research them and then once deemed correct figure out how to properly represent that factor for the consumption units of interest. Again, it would seem this would be straightforward but proved otherwise. Should anyone know of a comprehensive, complete, international source for major consumption types for the many suppliers involved, along with their representation across different units, by all means, please let us know!

A major milestone was the development of the initial carbon footprint; seeing the overall impact as well as the component contributors and their respective share. This is a key milestone as it becomes the starting point for the development of different strategies and initiatives to mitigate one's impact. It also is the point where considerable discussion takes place as clients develop a better understanding of what their environmental impacts are and where they are coming from. As might be expected, there were a few surprises and unexpected results. This in itself is a great learning experience as the concept of Scope (1, 2, and 3) becomes clearer as it applies to a client's environment.

Another key observation at this point: seeing where one's business strategy is not likely to be kind to ones sustainability efforts. As an example, in the financial services and high tech sectors one of the biggest sources of impact are driven by employee travel. Companies striving to grow and expand on an international basis are likely to travel more, leading to a bigger environmental impact. This observation, in turn, has the effect of honing ones mitigation efforts into those areas of business operation where business strategy CAN be augmented while also driving down environmental impacts.

As we worked with the footprint we also continued to transfer knowledge pertaining to GRI reporting. We provided the overall framework and details on how to apply it. A key conclusion here pertains to how the well structured and organized GRI framework can deceive users. Once one dives into specific key performance indicators (KPIs) and understands what is needed to report on them as part of ones deliverable, it becomes more apparent as to how one needs to go about crafting and driving ones sustainability program efforts. KPIs require specific types of data in most cases. This means someone needs to be gathering this data, organizing it, and synthesizing it in a manner that maps to the selected KPIs. What one may have thought was a "good example to include" in a GRI report ends up only being something referenced anecdotally because the required metrics do not exist.

Certainly, this is where a sophisticated Environmental and Energy Management (EEM) system comes in handy. One can gather data and work with it to get to a desired GRI but the process is significantly simplified through these robust tools. The intelligence built into these systems, and their continued evolution along this dimension, goes a long way toward organizing and coordinating data management and subsequent reporting related activities.

More to come. Part Three will continue with this thread starting with the creation of strategies and identification of related mitigating initiatives.

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