Appendix D: The Sustainable Development Commission s Sector Strategy Self-Assessment


Reprinted with permission from the Sustainable Development Commission.

The following list of assessment questions can be used to judge the quality-of a strategy. To be adequate, a strategy should answer each question either fully or satisfactorily. Additional weight should be given to fully answering questions which are of most significance to the sector. Many of these factors may and should interact. For example, it will not be enough to list principles of sustainable development, if it is clear that these have not been reflected throughout the document. Where best practice is identified, the strategy should set out proposals for dissemination and adoption of this practice. Where targets are established, the strategy should identify how they are to be achieved and where responsibility for this lies.

Source: The Sustainable Development Commission at www.sd-commission.gov.uk/pubs/sag/index.htm.

Appraisal Questions

General Principles

To what extent does the strategy:

  1. Show a recognition and understanding of the meaning and objectives of sustainable development in general and as they relate to that sector?

  2. Acknowledge the costs and limits of unsustainable activity and the benefits of action to achieve sustainability?

  3. Acknowledge the need for a precautionary approach?

  4. Place people at the centre of the strategy and involve stakeholders including supply chain partners , customers, and disposers?

  5. Demonstrate a high level of commitment to the implementation of the strategy among participants ?

Assessment of Current Performance of the Sector and Recent Change

To what extent does the strategy:

  1. Identify clearly and openly the general economic, social, and environmental impacts, both good and bad, of the sector and take responsibility for those impacts? Does this include:

    • Consideration of the supply chain?

    • Source of raw materials and energy impacts from manufacture and processing?

    • Impacts from transport?

    • Impacts on employees and communities?

    • Use of products and final destination?

    • Overseas impacts as appropriate?

  2. Identify threats to the sector from unsustainable practices and identify opportunities for the sector to benefit from more sustainable practices?

  3. Assess the past performance of the sector (clearly defined) against appropriate indicators (see Table D-1) and assess the move toward (or away from) sustainable development over time? Does this assessment reflect the concerns of stakeholders and the wider public? Can additional or more appropriate indicators be added? Can these indicators be applied to future performance for consistent reporting?

Ref.No.

Objective

Suggested Indicators

Relevance

Objectives Check List

Your Indicators and Desirable Outcomes

Maintaining high and stable levels of economic growth and employment

1

Contribute to economic growth.

Net profit/earnings/income.

Return on capital employed.

Trade balance with other countries .

Economic impact of products. Develop new markets.

A strong economy provides good conditions for business, including strong markets.

High profits enable expansion and innovation in business activity.

   

2

Invest in modern plant and machinery as well as research and development to achieve prosperity .

Levels of investment in plant, machinery, buildings , research, and development.

Investment is recognized as vital to increased efficiency, profitability and competitiveness .

   

3

Maintain high and stable levels of employment.

Numbers of people employed in sector.

Productivity of workforce.

High levels of employment create larger markets. Productivity of the workforce is crucial to profitability.

   

Social progress which recognizes the needs of everyone

4

Help build sustainable communities.

Company involvement in community projects. Support for local economy (local sourcing schemes). Support for training, (access to company facilities, etc.).

Supports positive business reputation. Community involvement activities can help to raise understanding of diverse customer segments and identify opportunities for new products.

   

5

Equip people with the skills to fulfill their potential

Level of investment in training Ratio of training budget to operating costs Businesses recognized as Investors in People

All industries need to invest in training to be efficient, innovative and competitive.

   

6

Achieve fairness at work.

People working long hours.

People on low pay.

Employment of women and ethnic minorities (including numbers in middle and senior positions ).

Employee retention.

Job satisfaction.

Human rights violations.

A diverse, respected, and well-managed workforce is likely to be committed, productive, and support positive business reputation. Cost savings can be made by improved recruitment and retention rates as well as productivity.

Significant legal costs and loss of reputation can result from poor performance against these indicators.

   

7

Maintain safe and healthy environment at work.

Work fatalities (including those not at the workplace but work related , e.g. asbestosis). Working days lost through injury and illness . Levels of absenteeism.

Preventing illness and injuries can avoid loss of productivity and increased overall labor costs (as replacements need to be paid.) It can improve business reputation and avoid costs in insurance premiums, medical and legal costs.

   

8

Tackle poverty and social exclusion.

Corporate giving and community projects. Social impact of products. Number of companies involved in volunteering /mentoring schemes. Number of companies involved in New Deal or other government initiatives.

Corporate engagement in local communities can improve reputation and trust. Supporting initiatives in inner cities and developing countries can open up new markets.

   

9

Raise quality of life of workers in global supply chains.

Companies implementing ethical trading codes of conduct.

Unethical treatment of workers abroad can be severely damaging to business reputation and market position.

   

Effective protection of the environment

10

Reduce emissions of greenhouse gases now and plan for further reductions in future.

CO2 output and output of other greenhouse gases (include output from not just manufacture or extraction). Use of energy from renewable sources. Depletion of fossil fuels.

Reduction in output CO2 and other gases is a measure of resource productivity and can lead to cost reduction. Effective management of emissions suggests good business management.

   

11

Reduce air pollution and ensure air quality continues to improve.

Outputs of pollutants covered by national air quality objectives. Include emissions from transport, supply-chain users and disposers as well as core business.

Reducing emissions can be very beneficial to business reputation, indicate more efficient and controlled processes, and can result in a healthier workforce.

   

12

Improve water quality in rivers, estuaries, and the sea.

Emissions of substances into watercourses and the sea. Use of extracted water. Water efficiency of products.

Reduced use of water can save costs. Water pollution can cause negative profile.

   

13

Maintain and enhance biodiversity.

Amount of land owned, leased, or otherwise affected by organization by habitat type and status (degraded, pristine, etc.).

Habitat changes due to operations. Amount of habitat protected or restored. Impacts on protected areas.

Enhanced biodiversity will improve the quality and amenity value of the local environment.

Damaging such habitats can have severe and long term effect on reputation.

   

14

Reduce noise.

Level of noise from processes and transport. Noise from suppliers. Noise from product or use of product.

Impact on noise sensitive environments, e.g., national parks, residential areas.

Noise can be damaging to reputation of the organization and the health and safety of the workforce. Can suggest inefficient or outdated process. Can result in claims and legal costs.

   

15

Reusing previously developed land, in order to protect the countryside and encourage urban regeneration.

Reuse of previously developed land compared to take of greenfield sites. Creation of derelict land. Amount of permeable surface as % of land owned.

Urban sites may benefit from local suppliers and availability of labor. Grant support/rate holidays may be available for brown-field sites. Planning permission may be easier to obtain.

   

16

Improve choices in transport and reduce need for travel.

Kilometers travelled by mode (air, rail, road, water), by freight, and business travellers. Active policies on fleets, business travel, workforce commuting (green travel plans), and visitor transport. HGV mileage intensity.

Careful management of transport of employees and goods across a range of modes can result in significant cost savings. For example, lorries run full each way and by the best routes, vehicle are efficient and suitable.

   

17

Assess environmental impacts, set targets, and produce reports .

Adoption of environmental management systems (ISO 14001) and EU Eco-management Audit Scheme (EMAS). Companies setting organizational and performance environmental targets.

Companies reporting on their environmental performance to government standard. Number of companies signed up to Making a Corporate Commitment or other schemes of this kind.

Reputation enhanced by being seen as leader in environmental management, may provide marketing advantage and reduce risks and costs in insurance, capital, etc.

   

Prudent use of natural resources

18

Greater energy efficiency.

Energy use in the sector. Efficiency of transport used in sector. Energy efficiency of products. Energy efficiency of supply chain

Energy efficiency reduces costs.

   

19

Greater resource efficiency.

Use of key resources and materials in sector. Resource efficiency of supply chain.

Considerable savings can be achieved if use of resources can be minimized.

   

20

Move away from disposal of waste toward waste minimization recycling and recovery.

Total waste by sector.

Waste to landfill.

Waste arising from use of products.

Proportion of product recyclable.

Levels of materials recycled.

Levels of hazardous (special) waste produced.

Levels of radioactive waste.

Disposal of waste is costly. Reduced waste is an indicator of efficient process.

   

21

Avoid storing up pollutant problems for the future.

Emissions of persistent organic compounds , radioactive discharges.

Reduces potential liabilities and improve business reputation.

   

22

Use consumer information to encouraging movement in the market toward sustainability.

Amount and accuracy of information provided (accreditation to ISO 14021).

Good marketing of sustainable practices and products can increase market share and take up of products as well as sector reputation.

   

Specific Sectoral Performance, Indicators, and Targets

To what extent does the strategy:

  1. Identify opportunities for the sector to contribute to improvements and breakthroughs (such as technological innovations) which might help achieve sustainable development? Does the strategy include proposals for their implementation, including the costs of such work?

  2. Identify opportunities for sectors to work together to achieve greater progress or any constraints which exist if sectors are forced to work in isolation?

  3. On the basis of 6 “ 10 above, establish indicators and targets for the sector to achieve improvements in terms of tangible benefits and measurable criteria for success?

    • Are these indicators realistic and challenging?

    • Are timescales established?

    • Is the data to be used transparent and verifiable ?

    • Is the sector clearly defined for the purposes of target setting?

    • Is it clear what factors may influence the ability of the sector to deliver these targets?

    • Are costs and benefits identified?

    • Does it also identify action which may be necessary to alleviate any limiting factors?

  4. Assess whether the impact of implementing the strategy as a whole is likely to be positive/neutral/negative in terms of the indicators listed in Table D-1 and any other relevant indicators? Are there ways in which the strategy could be refined to make the effect more positive or less negative?

  5. Require annual reporting against indicators for improvement? Identify a process by which the strategy can be reviewed and enhanced as lessons are learned?

  6. Take a long-term perspective in addition to short-term indicators (at least 10 years )?

Exemplification, Application, and Dissemination

To what extent does the strategy:

  1. Relate its assessment of performance and future targets and indicators to practical and actual examples? Is there a sector leader or leaders ” organizations or groups of organizations that can demonstrate the strategy as applied to their activities?

  2. Include proposals to facilitate and encourage the application of the strategy and achievement of targets by individual organizations?

  3. Establish and seek to disseminate and encourage best practice and benchmarking?

  4. Raise awareness of sustainable development issues among members and a wider audience?




The Supply Chain Imperative. How to Ensure Ethical Behavior in Your Global Suppliers
Supply Chain Imperative, The: How to Ensure Ethical Behavior in Your Global Suppliers
ISBN: 0814407838
EAN: 2147483647
Year: 2004
Pages: 123
Authors: Dale Neef

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