INTEGRATED MANAGEMENT “In an era when the severity of the problems of sustainability are on the rise and the will to address them seems to be on the wane, Robert Sroufe offers this valuable primer on integrated management Within these pages, you will find practical tools to help any business leader make balanced decisions, articulate an actionable vision and set his or her organization on a long-term path towards addressing the great issues of our day This book gives hope that we can come to terms with our sustainability challenges; indeed, if business does not address these challenges we have little hope of solving them.” Andrew Hoffman, Holcim Professor of Sustainable Enterprise, University of Michigan “Integrated Management will be a valuable resource for any manager or student interested in learning how to apply systems thinking to company sustainability It clearly outlines a path to real sustainability that all companies need to follow if the world is to be a fit place for us humans in the future.” Sandra Waddock, Galligan Chair of Strategy, Boston College “In an increasingly complex world, with growing environmental and social challenges, corporate strategy and management needs to change Tackling big, systemic problems requires working across normal lines in business Integrated Management offers solutions to a couple of long-standing and related problems Companies have too many functional silos, and those divisions communicate and measure success in only one language: cash, or financial capital This book makes an important argument and helps executives manage multiple capitals beyond just the financial – human, intellectual, manufactured, social, and natural – and thus build more sustainable and successful enterprises.” Andrew Winston, Advisor to Multinationals & Author of The Big Pivot and Green to Gold “Meeting the challenge of sustainability will require strategies and action from all segments of society: government, business, and citizens alike Robert Sroufe advances the state of the art by focusing in particular on the need to develop the peripheral vision for integrating the many aspects of sustainability into a more coherent and effective business strategy.” Daniel J Fiorino, Director, Center for Environmental Policy, American University “To succeed as a business strategy, sustainability needs to be baked-in across the enterprise, not bolted-on to one function: this is the powerful idea that animates Robert Sroufe’s important new book Providing concrete tools for integration practitioners as well as broad theoretical context for students, Integrated Management will be a useful guide for those transforming business to meet the critical sustainability challenges of the 21st century.” Eban Goodstein, PhD, Director, Bard MBA in Sustainability “The most sustainable companies are those that have fully integrated sustainability into their strategy, products, operations, and marketing Drawing on best practices, this highly accessible book describes why managers should drive such integration, how to get the organization on board, and what tools and concepts can help them achieve integration.” Mike Toffel, Professor of Business Administration & Faculty Chair, Business & Environment Initiative “For too long social and environmental sustainability and organizational growth and profitability have been seen at odds In Robert Sroufe’s new book he shows why and how embedding sustainability in a company’s strategy and operations delivers real value for people, the planet and the bottom line The future of business will rely on this type of integrated approach to sustainability and this book will provide practical tools to ensure your business adapts and thrives in a changing world.” James Connelly, VP, Products and Strategic Growth, International Living Future Institute This page intentionally left blank INTEGRATED MANAGEMENT How Sustainability Creates Value For Any Business BY ROBERT P SROUFE Duquesne University, USA United Kingdom À North America À Japan India À Malaysia À China Emerald Publishing Limited Howard House, Wagon Lane, Bingley BD16 1WA, UK First edition 2018 Copyright r 2018 Emerald Publishing Limited Reprints and permissions service Contact: permissions@emeraldinsight.com No part of this book may be reproduced, stored in a retrieval system, transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without either the prior written permission of the publisher or a licence permitting restricted copying issued in the UK by The Copyright Licensing Agency and in the USA by The Copyright Clearance Center Any opinions expressed in the chapters are those of the authors Whilst Emerald makes every effort to ensure the quality and accuracy of its content, Emerald makes no representation implied or otherwise, as to the chapters’ suitability and application and disclaims any warranties, express or implied, to their use British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library ISBN: 978-1-78714-562-7 (Print) ISBN: 978-1-78714-561-0 (Online) ISBN: 978-1-78714-975-5 (Epub) ISOQAR certified Management System, awarded to Emerald for adherence to Environmental standard ISO 14001:2004 Certificate Number 1985 ISO 14001 To Marybeth, Alexandra, and Isabella vii This page intentionally left blank Contents List of Figures xiii List of Tables xvii Foreword xix Preface xxi Acknowledgments xxv SECTION I A DYNAMIC PERFORMANCE FRONTIER À BEYOND SUSTAINABILITY The Integration Opportunity We Need Decision-makers with a Vision for a Sustainable Future Why Now? A Dynamic Performance Frontier Integration Operationalized Trends À Evidence of the Inevitable Chapter Summary Bibliography 10 12 15 22 23 Critical Dimensions of Integration À Enablers Complex Problems Systems Thinking Value Creation Change Management Integrated Reporting À Evidence of Change Chapter Summary Bibliography 25 27 30 38 50 54 55 56 A Customized Approach for Any Enterprise Take an Action Learning Approach Facilitation and the Strategic Planning Process 59 61 66 ix with group of people, 66 session, 65 “Brand”, 48, 131 Business executives, 123À124 function, 89À90 leaders, 212 practices, 120, 323 strategy, 44, 321 value, 125 Business models, 26, 41, 43, 89 capabilities, 47 key customers, 45 value proposition, 45À46 Business to business (B2B), 165 Business-as-usual practices, “Cap and trade” system, 349 Capabilities, 47 Capital expenditures, 124 Capital investments, 44 Carbon, 176 footprint, 177 neutral, 161, 226 offsets and trading, 348À350 tax, 132 trading platforms, 15 Carbon and climate change mitigation, 348 carbon offsets and trading, 348À350 Greenhouse Gas Protocol, 348 Carbon dioxide (CO2), 142n48, 143, 162 CO2-emissions, 134 Carbon Disclosure Project (CDP), 15, 35, 127, 244À247 Carlsberg, 223 Cash flow analysis, 126 statement, 263 392 I nd e x Causal loop diagrams (CLDs), 31, 32, 88, 89 Certified BCorp status, 257 Change management, 50À54, 78À79 Chasm, 209 BCorp, 256À258 CDP, 244À247 crossing, 240À242 GHG Protocol, 244À247 GRI, 247À249 IIRC, 249À253 impact investing, 253À255 IR, 249À253 SCC, 242À244 toward sustainability, 236À240 Chicago Climate Exchange (CCX), 349 Chief integration officers (CIOs), 109 Chief Sustainability Officers (CSO), 109, 113 Climate change, 161 mitigation, 348À350 Closed loop system, 216, 218 thinking, 221 Cloud based technology, 323 Codification, 250 Collaborative action, 62À65 Collapse, 19, 218 ColorDry, 126 Community collaboration with, 75 economic prosperity, 74 Company, Customer, Competition, Collaborators (4C), 202À203 Company economic prosperity, 74 Company experimentation, 249 Company strengths, 137À138 Complex problems, 7, 27À30, 152, 267, 279, 280, 306, 313 Comprehension, 176 Conceptual materiality matrix, 123 Conference of Parties (COP), 18 “Conscious consumer”, 136 Conservation, 17 Constraints, 153 Consumers, 131 Conventional energy sources, 160 Conversations, 330À331 Corporate culture, 189À190 environmental management systems, 29 Standard, 246 sustainability, 109 Corporate Knights, The, 205, 285, 318 Corporate social responsibility (CSR), 313 reporting, 169, 347 Corporation impacts, 284 Forbes rankings, 285 Newsweek ranking, 286 value matters, 287À293 Corporations and Governments Revenues, 289 Cost avoidance, 40 Cost of debt, 125 Cost of Goods Sold (COGS), 131À132 Covestro, 241 Cradle to Cradle model (C2C model), 216, 218À220, 341 Cradle to Cradle Certified™ Product Standard, 219 Cradle to Cradle Products Innovation Institute, 219 opportunities, 163 Crafting strategy, 283 Crash, 218 “Creating shared value”, 9, 254 Credibility/consistency, 190 Critical dimensions of integration, 25 complex problems, 27À30 systems thinking, 30À38 value creation, 38À50 “Cultural Creatives”, 136 Customer, 45, 49 Customer Relations Management (CRM), 98 Customizable framework, 59À60 Customized approach for enterprise action learning approach, 61À62 collaborative action, 62À65 facilitation and strategic planning process, 66À67 informed decision-making, 76À77 integration and change management, 78À79 strategic sustainable development, 67À76 Dashboards, 6, 90, 130, 228, 320, 322, 323, 325 KPIs for environmental performance, 106, 108 management, 106, 110 David & Lucile Packard Foundation, 255 Decarbonization, 220 Decision analysis, uncertainty in, 274 Decision-makers, 28, 162 approach, 3À4 I nd e x 393 with vision for sustainable future, 6À8 Decision-making, 169 Demand and supply management, 128 Dematerialization, 220 Department of Energy (DOE), 159 Design process and outcomes, 153, 155 Design thinking, 151 ecological footprint, 176À177 integrated management to life, 152À156 IntEnt, 178À179 LCA and design thinking enable integrated management, 172À176 NZ strategy, 156À161 PBL application, 170À172 DesignTex, 219 Detrimental ecosystem impacts, 217 Deutsche Bank Institute of climate change, 224 Dexus financial services, 123 Diabetes Advocacy Alliance, 252 Die-off, 218 Disability Opportunity Fund, 255 Discount rate, 243 Disney, 241 Dodge v Ford Motor Company, 257 Dow, 241, 252 Drivers, 52, 91À92, 187À193 Drywall, 221 DuPont, 241 Dynamic performance frontier, 10À12 Early Adopters, 236, 239 Early Majority, 236, 239À240 394 I nd e x eBay, 109 Eco-industrial parks, 221 Ecological footprint, 176À177 footprinting, 69 process, 343 Economic issues, 10À11 system, 19 topics to review, 368À369 “Emerging megatrend”, 338 Emission Trading Scheme (ETS), 15 Employees, respect for, 74 Enablers, 52, 92, 187À193, 323À324 End-of-life processes, 163 Energy consumption, 224 systems, 3À4 Energy Assurance (EA), 229 Energy Independence and Security Act of 2007 (EISA), 160 Energy Star, 224, 229 appliances, 131 commercial buildings program, 225 Portfolio Manager, 227 Energy use intensity (EUI), 226 Engagement, 330À331 Enterprise Resource Planning system (ERP system), 98, 130 Enterprises, 3À4, 16À17, 25, 91, 291, 295 aligning operating systems, 193À199 annual report, 3À4 benefits of integrated management, 191À193 drivers, obstacles, and enablers, 187À193 extensions to supply chain systems, 191À193 functions, 326À327 information systems, 282À283 integration, 104 management systems, 182À187 operating systems integration, 187À191 processes, 314 pursue, 312 stakeholders, 109 standards, 199À203 strategic sustainability assessment, 204À206 strategy, 60 systems, 181 Entrepreneurs, 344 Environmental, social, and governance (ESG), 4, 26, 97, 113, 120 Environmental health, and safety (EH&S), 39À40 Environmental Management Systems (EMS), 69, 98, 166, 346 Environmental Product Declarations (EPD), 169, 222À223, 341 Environmental Protection Agency, 168 Environmental Protection and Encouragement Agency (EPEA), 219 Environmental/ists/ism, 20, 313 environmental/social impacts, 262À263 management, 339 movement, 16 policy, 348 responsibility, 75 risk control and restoration, 75 and social sustainability performance, 189, 285 standards, 200À201 topics to review, 373À375 Ernst & Young financial services (EY financial services), 123 Error at the Heart of Corporate Leadership (Harvard article), 257 European Foundation for Quality Management (EFQM), 16 European Union Emission Trading system (EU ETS), 349 Eutrophication, 168 Evaluation, 176 Evaluators, 52, 92 Event-pattern-structure pyramid, 28 Evidence based management, 261À262 Evidence-based approaches, 85 Example-integrated management strategy statement, 73 Execution capabilities for integration, 137 Executive order (EO), 160 Expectations, 136 Expert commentary, 250 External enablers, 191 External factors, 139À140 “Externalities”, 127 ExxonMobil, 251 Facilitation and strategic planning process, 66À67 Financial/finance, 13, 95À96 analysis, 268 I nd e x 395 capital, 122, 339 decision analysis, 314 functions, 130 issues, 10À11 measures, 317À318 Firms, 122, 175 and environmental policy, 348 Forbes ranks, 285 Ford, 219 14040 standards, 168 14044 standards, 168 Framework for strategic sustainable development (FSSD), 20, 59, 67, 164, 314, 335À336 global sustainability challenge, 336 sustainability, 337À338 Freeware sites, 162 FrugalPac, 216 Functional integration, 89À93, 106, 321À322 accounting, 93À94 finance, 95À96 HBR, 103À104 human resources, 96À97 IS/IT, 97À98 marketing, 99À100 operations, 100À102 public relations, 102À103 Functional responsibilities, 151 Functional symptoms vs problems, 88 Generally Accepted Accounting Principles (GAAP), 265À266 Gigaton (Walmart launched project), 183 Global Accounting Alliance (GAA), 250 “Global business imperative”, 338 Global Footprint Network, 177 Global Impact Investing Network (GIIN), 253 Global regions application of SDGs, 307 Global Reporting Initiative (GRI), 5, 122, 247À249, 337, 345 Global warming potential, 162, 165 Globalized workforces, 127 Good Neighbor Award (2009), 252 Government enterprises, 119 Green buildings, 223 Green Chemistry, 343 Green Mountain Power, 258 Green Project Management (GPM), 110 Greenhouse Gas Protocol (GHG Protocol), 69, 244À247 Greenhouse gases (GHG), 348 emissions, 126, 127, 134, 162, 176 Greening, 214À215 Group decision-making settings, 86 Gap Frame, 294 General Electric Company, 238 Ecomagination program, 238 GE-McKinsey cell matrix, 196 General public benefit, 256 Harvard Business Review (HBR), 103, 142 Herman Miller, 219, 241 High-level measurement and alignment options, 293À294 396 I nd e x country-level gap frame score and priority dimensions, 295 High-performance buildings, 223À230 “Higher form of capitalism”, 254 Human cancer, 168 Human capital, 122 Human criteria effects, 168 Human noncancer, 168 Human resources, 13, 96À97 Human-centered approach, 153 Humanscale chairs, 223 Ideation, 153À154 IKEA, 69, 134À135 Impact investing, 253À255 Impact Measurement Working Group of Social Impact Investing Taskforce, 255 Implementation process, 154 Incentive systems, 189 Income statement, 263 Income taxes, 132À133 Industrial ecology (IE), 220À221, 343 Industrial metabolism, 220 Industrial symbiosis, 221, 343À344 Inevitable evidence, 15À21 Information systems, 8À9, 90, 282À283 Informed decision-making, 76À77 Innovation, 44 Innovative decision-makers and solutions, 319À320 Innovators, 236, 237 Institutional chasm, 316 Institutionalizing phase, 250 Integrated assessment models, 242 Integrated Bottom Line (IBL), 10, 52, 64, 314, 345 opportunities, 164 reporting, 345 Integrated business management, 3À4, Integrated cities, 324À326 Integrated enterprise (IntEnt), 4, 22À23, 55, 79, 115, 144, 145, 156, 178À179, 204, 275, 308À309 Integrated Future Value (IntFV), 20, 142 Integrated governance, 114 Integrated management, 4, 63, 78, 90, 121, 144, 177, 306, 312 action, 326À329 adoption model, 236, 237 benefits of, 191À193 carbon and climate change mitigation, 348À350 comprehensive list of resources, 338 enables value maximization, 41À43 evolution of sustainability, 338À340 firms and environmental policy, 348 FSSD, 335À338 GRI, 345 impacting strategic sustainable development, 340À344 ISO, 345À347 to life, 152À156 measuring and reporting tools, 345 movement, 262 opportunity, 280, 335 for readers, 335 socially and environmentally responsible investment indices, 347À348 I nd e x 397 of sustainability, 209, 316 sustainability and CSR reporting, 347 triple bottom line accounting, IBL/integrated reporting, 345 Integrated opportunities, building, 158À161 Integrated planning process, 89 Integrated problem-solving, 38 Integrated Rate of Return (IntRR), 20, 271, 274, 288, 306, 314 Integrated reporting, 54À55, 249À253 Integrated roadmap, 214 Integrated solution, 229 Integrated supply chains, 323À324 Integrated thinking, 250 Integrated value, 120 chains, 322À324 maximization, 49À50 Integrated Value Added (IntVA), 47, 306À307, 313 Integration, 141 and change management, 78À79 chasm, 315À316 energy-efficient strategies, 158 and innovation, 262À272 operationalization, 12À15 and organizational change toward sustainability, 53 responsibilities and opportunities, social sustainability principles, 54 Integration across disciplines enabling integration opportunities, 104À109 evidence-based approaches, 85 functional integration, 93À104 398 I nd e x getting system in room, 109À115 overcoming obstacles, 89À93 value multiple perspectives, 86À89 Integration opportunity Ansoff’s Matrix, 197, 198 Boston Consulting Group Growth Share Matrix, 196À197 decision-makers with vision for sustainable future, 6À8 dynamic performance frontier, 10À12 evidence of inevitable, 15À21 GE-McKinsey cell matrix, 196 integrated business management, New Product Diffusion Curve, 199 PESTLE analysis, 195À196 Porter’s Five Forces, 197, 198 SDGs, strategic frameworks for, 193 sustainability, SWOT analysis, 193À194 Intellectual capital, 122 Intelligent Product System (IPS), 219 Interactive components of business model, 43 Interface, 217 Intergovernmental Panel on Climate Change (IPCC), 134, 291 Internal forces, 137 Internal price, 127 Internal rate of return (IRR), 268À269 International Institute for Sustainable Development, 337 International Integrated Reporting Council, 19, 122, 249À253, 337 International Living Future Institute (ILFI), 223, 251 International Organization for Standardization (ISO), 16, 165, 170, 182, 186, 345À347 ISO 14001, 184 Interpretation, 153, 168, 346 Inventory, 134À135 Investor Environmental Health Network (IEHN), 347 Investors, 11 IoS (Apple), 141 IS/IT, 20, 90, 97À98, 106, 121, 130, 135, 139, 140, 315 Iterative process, 50 Kanban systems, 108 KFC, 216 Kickstarter, 258 Knowledge, 176, 330À331 KPIs, 104, 106, 108, 113, 138, 317 Kyoto Protocol, 15, 349 L’Oréal, 241 Laggards, 236, 240 Late Majority, 236, 240 Leadership, 137 Leading Energy and Environmental Design (LEED), 223À225, 227, 229 Learning process, 63 Life cycle impact assessment, 167À168, 342 improvement analysis, 342 interpretation phase, 168 inventory, 342 inventory analysis, 166À167 process, 133 Life cycle analysis See Life cycle assessment (LCA) Life cycle assessment (LCA), 12, 20, 69, 101, 131, 151, 152, 163À170, 341À342, 345, 346 and design thinking enable integrated management, 172À176 ecological footprint, 176À177 tool supporting design and goals of zero, 162À163 Life cycle management (LCM), 165À166 Living buildings, 5, 17, 76, 159, 162, 229 Living Machines (Todd), 218 Living products, 222À223 Logistics industry, 132 sustainability, 134 Long-term capitalism, 144 Long-term sustainability goals, 314 Low “first cost” approach, 226 Man-made landfills, 221 Management dashboards, 110 Management information systems (MIS), 97 Management systems, 182À187 Market, 134 Marketing, 13, 99À100, 130 departments, 322À323 management, 169 I nd e x 399 Material approval process, 173 Material efficiency, 165 Material Health, 219 Material Reutilization, 219 Materiality, 38, 120À124 Materiality map, 210À215 MBA, 5, 8, 337 McDonalds, 216 McDonough Braungart Design Chemistry (MBDC), 341 McKinsey’s approach, 88 Method Products, 258 Microfinancing, 344 MIT Sloan Management Review, 124 Mohawk flooring, 223 Monte Carlo simulation, 274 Moving to solutions based business model, 216 MSCI Global Socrates, 94, 262, 284, 326 Multi stakeholder engagement, 109 Multidisciplinary approach, 172, 174 Multinational companies (MNCs), 109, 126 Multiple-criteria Decision Analysis (MCDA), 272À273 Multistakeholder decision-making, 87 NASDAQ, 252 National Renewable Energy Laboratory (NREL), 159À160 National Risk Management Laboratory, 163 Natura, 250 Natural capital, 122, 266À267 400 I nd e x Natural capitalism, 164, 173, 215À218, 342 Natural Capitalism Solutions, 140 Natural Marketing Institute (NMI), 136 Natural Step, 342 Nature Conservancy, 255 Nest, 141 Net operating working capital, 136 Net positive strategies (NP strategies), 157 Net present value (NPV), 126, 268À269 Net Zero Energy Building (NZEB), 158À161 Net zero strategy (NZ strategy), 156 building integrated opportunities, 158À161 energy, 158 energy cost, 160 energy emissions, 160 NZ/NP strategies, 157À158 Waste, 158 Water, 157 zeronaught, 156À157 New Belgium Brewing, 258 New Product Diffusion Curve, 199 Next Industrial Revolution, 317 Nike, 219 NIKE Flyknit, 126 NiSource, 109 Non-overlapping, 67 Nongovernmental organizations (NGOs), 119 Novo Nordisk, 250, 252 Novozymes, 250, 252 Nucraft, 223 Obstacles, 187À193 “One Report”, 252, 253 Operating margin, 129 Operating systems integration, 187 attributes of management systems integration, 188 credibility/consistency, 190 cultural and resistance to change, 189À190 lack of top management support, 190 sustainability, 191 Operationalizing integration, 63, 77 efforts, 60 Operations, 100À102 Opportunities, 138 Optimism, 329À331 Orchestrated change for corporate sustainability, 50 Organization of Economic Cooperation and Development (OECD), 133 Organizational change management, 50 Organizational change, 78 Owens Corning Ecotouch insulation, 223 P&G, 135, 165 Paper pallets, 134À135 Particulate matter, 217 Passive House, 227 Patagonia, 258 Payables accounts, 135 Pendleton, 219 PepsiCo, 153 Performance, 52, 92 Performance Frontier, 11, 209, 211, 212, 262À272 C2C model, 218À220 EPD, 222À223 high-performance buildings, 223À230 IE, 220À221 living products, 222À223 materiality map, 210À215 natural capitalism, 215À218 Physical capital, 122 Pittsburgh’s air quality, 217 Plan-do-check-act cycle, 106, 166 Planetary boundaries, 69 Policymaker, 157 Political, Economic, Social Technological, Legal, and Environmental analysis (PESTLE analysis), 195À196 Political leader, 157 Poly Propylene, 135 Poly-chlorinated biphenyls (PCBs), 68 Porter’s Five Forces, 197, 198 Portfolio Managers system, 225 Price competitiveness, 128, 129 Price realization, 128À129 Principles for Responsible Investment (PRI), 11 Principles for Responsible Management Education (PRME), 331 PRME Responsible Management Education Collection (PRMEC), 340 Problem-based learning (PBL), 152, 170À172 Process, 90, 153 improvements, 44 Procurement, 130, 173 Product and process design, 173 Production processes, 16 Productivity, 211 Project management KPIs, 107 I nd e x 401 Property plant and equipment (PP&E), 133À134 Propositions integration and innovation, 262À272 IntEnt, 275 MCDA, 272À273 uncertainty in decision analysis, 274 Prototyping, 154 Public Affair’s networks, 13 Public policy innovations, 18 Public relations, 102À103 Purchase order, 173 Quality of life, 294 ‘Race to Zero’ framing, 156 Receivables accounts, 135 Recovery, 163 Recycling, 163 Regional Greenhouse Gas Initiative (RGGI), 292, 349 Registered EMS, 183 Reinforcing feedback, 33À34 Reinvesting in natural capital, 217 Renewable Energy, 219 Renewable Energy Credits (RECs), 160 Renewable resources, 252 Responsibility, 174 Responsible governance, 74 Retailers, 131 Return on Integration (ROInt), 20, 142 Return on investment (ROI), 268À269, 339 Revenue growth, 125À126, 127 Revisiting performance frontier, 315À316 402 I nd e x Risk management, 339À340 practices, 34 Rockefeller Foundation, 254 Rockwool, 223 Selling, general, and administrative (SG&A), 130À131 Shadow price See Social cost of carbon dioxide (SCC) “Shared value”, 271 Shareholder value, 93, 124, 125, 129 COGS, 131À132 company strengths, 137À138 external factors, 139À140 GHG emissions, 126À127 income taxes, 132À133 inventory, 134À135 PP&E, 133À134 price realization, 128À129 receivables and payables, 135À137 revenue growth, 125À126 SG&A, 130À131 sustainability, 124À125 volume, 127À128 Shareholder Value Myth (Stout), 257 Shifting to biologically inspired production models, 216 Short-term gains, 35 Short-term profits, 189 Site energy, 159 Small and medium enterprises (SMEs), 119 Smog formation, 168 Social and environmental performance integration, 20À21 Social capital, 122 Social cost of carbon, 142À143, 158, 175 Social cost of carbon dioxide (SCC), 5, 142n48, 238, 242À244 Social cost of methane (SC-CH4), 244 Social cost of nitrous oxide (SCN2O), 244 Social Fairness, 219 Social management, 339 Social progress index (SPI), 293À294 Social standards, 200 Social sustainability, 266À267 Social topics to review, 369À371 Socially and environmentally responsible investment indices, 347À348 Societal topics to review, 372À373 Socio-ecological systems, 15 Software, 176 functionality, 172 Source energy, 159À160 Sourcemap, 162, 163 South Africa, IR in, 251À252 Stakeholders, 28, 31, 61, 74, 91, 113, 329, 335 equity, 263 expectations, interests, 121 Standards, 199À203 Starbucks, 216 Stimulate codesign processes, 12 Strategic integrated enterprises economic growth, 296 financial functions, 308 funnel metaphor, 281 global regions application of SDGs, 307 high-level measurement and alignment options, 293À294, 295 impacts of corporations, 284À293 integrated management, 306 IntEnt, 308À309 Paris Agreement on climate change, 295 SSD five-level framework, 280 Starbucks’ Program Alignment, 305 strategic integrated systems, 282À284 sustainable development goals, 297À304 turn options into actions and priorities, 294 Strategic integrated systems, 282À284 Strategic planning, 12 process, 66À67, 314 team, 121 Strategic sustainable development (SSD), 20, 59, 67À76, 86, 89, 340 BOP, 344 cradle-to-cradle, 341 EPDs, 341 Green Chemistry, 343 industrial symbiosis, 343À344 LCA, 341À342 microfinancing, 344 natural capitalism, 342 natural step, 342 and planning processes, 33 Strategy, 283 Strengths, Weaknesses, Opportunities, Threats analysis (SWOT analysis), 193À194 I nd e x 403 Superior Essex cat cable, 223 Supply chains, 6, 8, 42, 127 extensions to supply chain systems, 191À193 impacts, 75 management, 120, 132, 134 See also Value chains Sustainability, 6À7, 9, 20, 44, 67, 109, 113, 114, 140, 169, 190, 191, 241, 266, 312, 323, 337À338 chasm toward, 236À240 and CSR reporting, 347 factors, 33 integration, professionals function, 50 recognition, 26 in report, 137 standards/initiatives, 376À390 strategies, 126, 139, 186 sustainability-related assets and liabilities, 78 Sustainability Accounting Standards Board (SASB), 19, 122, 337 Conceptual Framework Source, 214 Materiality Map™, 213 standards development processes, 212 Sustainability evolution, 338 by design vs reducing unsustainability, 339 key issues and drivers for emerging trend, 340 management of social, environmental, and financial capital, 339 risk management, 339À340 Silent Spring, 338 Sustainable business model, 328 404 I nd e x Sustainable cities, 295, 296, 325 Sustainable development, 60, 335 Sustainable development goals (SDGS), 297À304, 337 Sustainable future, decisionmakers with vision for, 6À8 Sustainable operating systems (SOS), 52, 130 Sustainable supply chain management, 323 Sustainable value added (SVA), 47 Synthesis, 176 Systems thinking, 30À38 Task Force on Climate-related Financial Disclosures (TCFD), 291À292 Technological innovation, 44 Technology Adoption Life Cycle assessment model, 236 Technology and information systems, 13 Technology chasm, 315À316 Tesla, 128 3M, 241 Timberland, 241 Top management support, lack of, 190 Tracking, 173 Trade-offs, 315À316 Transformative approach, 35 Transportation, 173 supplier business models, 192 Triple bottom line (TBL), 7, 345 accounting, 345 Trucost, 94, 205, 262, 284, 326 Turborg beer, 223 Two-axis visual models, 122 2030 Challenge, 161, 226 UN Global Compact (UNGC), 17 UN Principles for Responsible Management Education (UNPRME), 17 UN Sustainable Development Goals (SDGs), 4, 69 global regions application, 307 “Unbalanced” approach, 263 Uncertainty in decision analysis, 274 Unilever, 241 Unilever Sustainable Living Plan (USLP), 297 Union Carbide in Bhopal India, 175 United Nations Environmental Program (UNEP), 11, 17, 345 United Nations Environmental Programme Finance Initiative (UNEP FI), 114 United Nations Global Compact (GC), 347 United States corporate law, 256 United States Green Building Council (USGBC), 225n29 “Untaxed externalities”, 215 Urban Sustainability Framework, 325 Value matters, 287À293 multiple perspectives, 86À89 proposition, 45À46, 93, 95 realization, 141 statement, 265À266 Value chains, 320 function integration, 321À322 integrated cities, 324À326 integrated value chains, 322À324 management, 168 See also Supply chains Value creation, 5À6, 14, 25, 38, 120, 144 business models, 43À47 change management, 50À54 integrated management enables value maximization, 41À43 integrated reporting, 54À55 integrated value maximization, 49À50 making business case, 140À144 materiality, 120À124 shareholder value, 124À140 value added, 47À49 Variables, 32 Verification, 318 Visual renderings, 154 Visualization, 65 Vitro Glass, 223 Volvo, 219 Walmart, 165 Warby Parker, 258 “Waste = food” principle, 219 Water Stewardship, 219 WELL Building Standard, 228 Windows, 141 “Wings” training center, 252 Wonder Capital, 255 I nd e x 405 World Business Council for Sustainable Development (WBCSD), 15, 245, 319, 339 World Economic Forum (WEF), 143 406 I nd e x World Resources Institute (WRI), 33, 245 Xbox, 141 Zeronaughts, The (Elkington), 156 ... tools for integration practitioners as well as broad theoretical context for students, Integrated Management will be a useful guide for those transforming business to meet the critical sustainability. .. MANAGEMENT How Sustainability Creates Value For Any Business BY ROBERT P SROUFE Duquesne University, USA United Kingdom À North America À Japan India À Malaysia À China Emerald Publishing Limited Howard... Enterprise, University of Michigan Integrated Management will be a valuable resource for any manager or student interested in learning how to apply systems thinking to company sustainability It clearly