Gilbert S. Hedstrom - Sustainability: What It Is and How to Measure It

Gilbert S. Hedstrom

Sustainability

ISBN 978-1-5474-1660-8

e-ISBN (PDF) 978-1-5474-0042-3

e-ISBN (EPUB) 978-1-5474-0050-8

Library of Congress Control Number: 2018955033

Bibliographic information published by the Deutsche Nationalbibliothek

The Deutsche Nationalbibliothek lists this publication in the Deutsche Nationalbibliografie;

detailed bibliographic data are available on the Internet at http://dnb.dnb.de.

2019 Gilbert S. Hedstrom

Published by Walter de Gruyter Inc., Boston/Berlin

www.degruyter.com

The authoritative book on the most vitally important issue of our day.

Ken Tierney, Group Vice President, Sustainability

Sims Metal Management

A must read for every business leader who wants an organized, comprehensive summary of sustainabilitypacked with industry best practices.

Dave Stangis, Chief Sustainability Officer

Campbell Soup Company

I highly recommend this book to senior leaders who want to understand quickly why sustainability matters to your business and how to measure it. The book also provides a great overview of the current trends around sustainability strategy and governance.

Karen E. Koster, Executive Vice President

Hexion, Inc.

Building a sustainable enterprise can be a complicated journey, but one made much clearer by Hedstroms concise primer and valuable roadmap. The book draws on rich examples across industries, and will help boards and executives move faster toward managing risks and harnessing the opportunities of sustainability.

Jason Jay, Senior Lecturer and Director

MIT Sloan Sustainability Initiative

The challenges facing society and the environment today are unprecedented. Businesses embracing sustainable development will gain competitive advantage and better manage risk. The book provides a balanced, insightful, unbiased review of sustainabilityand the Scorecard is a terrific tool to help business leaders gauge how they stack up today.

Lori Michelin, President and CEO

World Environment Center

To Peg, for your enduring support.

With special thanks to the sustainability pioneers who lit the flame...

And profound hope for tomorrows leaders who will carry the torch forward.

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There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things.

Niccolo Machiavelli

The Prince (1532)

When long-time friend and colleague Alex Lajoux suggested I write this book, I thought it would be easy. After all, much of existed with my Corporate Sustainability Scorecard C-suite rating system. I was, of course, wrong about that. However, Alex provided constant encouragement, invaluable edits and constant inspirationand for that I am most grateful.

A very special thanks to my editor, Jeffrey Pepper, who not only had a clear vision for this book but also provided constant mid-course corrections. I was incredibly fortunate to have an editor who is as thoughtful, knowledgeable, and even-keeled as Jeffrey. He and the De Gruyter team including Jaya Dalal, have been great to work with.

My Corporate Sustainability Scorecard, on which this book is based, has been influenced and shaped profoundly by conversations I have had in corporate boardrooms. In 1997, two of the Fortune 500 corporate board of directors meetings I participated in sowed the seeds for the Scorecard.

To the long-standing clients who engaged me to work on their behalf, and who entrusted me to meet with their CEOs and present to their boards of directors, I am most grateful. Since 1997, I have had the privilege of working with hundreds of outstanding leaders in large corporations across the globeat the intersection of business strategy, corporate governance, and sustainability. You have challenged my assumptions, shaped my thinking, and helped create the robust content of the Scorecard, constantly updated on the website (www.thesustainabilityscorecard.com).

The Conference Board has been a strong partner in advancing the business and sustainability agenda over the past two decades. In 2015, they published my article, Navigating the Sustainability Transformation, essentially an early version of this books Introduction. A special thank you to Conference Board colleagues Thomas Singer, Jim Hendricks, and Uwe Schulte for your constructive partnership.

A core team of Hedstrom Associates colleagues (Beth Tener, Pat Mahon, Justine Pattantyus, Larry Krupp, Nick Braica, Kelsa Summer, and Scott Sousa) has been with me over the past decade, working to create this Scorecard. Your patience and always positive support has kept the Scorecard moving. And I extend a special thank you to my colleagues from earlier days at consulting firm Arthur D. Little, especially those with whom I worked closely in Europe for many years: Jonathan Shopley, Richard Clarke, Rick Eagar, and their teams who helped shape the early versions of the Scorecard.

Many colleagues have influenced my thinking about the Scorecard and the subject in general, including Stephanie Aument, Bill Blackburn, Jim Hamilton, Stuart Hart, Andy Hoffman, Jason Jay, Justin Keeble, Peter Lacy, Julie OBrien, Dawn Rittenhouse, Gwen Ruta, Larry Selzer, Karl Schmidt, Dave Stangis, Ken Tierney, Bob Willard, and Terry Yosie. Thank you! Your insights and broad perspective continue to amaze me.

A special thanks to Jeremy Grantham, for your leadership globally, and for alerting investors to the stark realities we face as a society. You are a constant source of inspiration.

Finally, nothing has shaped my thinking about this Scorecard more than the time I have spent in highly confidential sessions with corporate board members. To my long-time friend and mentor, Patrick F. Noonan, I extend my heartfelt thanks.