24 FFBB DoSomeGood Positive Pursuits Others depend less
24 FFBB Do-Some-Good / Positive Pursuits Others depend less on non-renewable energy More people have access to energy Others depend less on inadequately-managed natural resources Others contribute less to water stress Infrastructure is strengthened in pursuit of future-fitness More people are healthy and safe from harm Governance is strengthened in pursuit of future-fitness People’s capabilities are strengthened Market mechanisms are strengthened in pursuit of future-fitness More people have access to economic opportunity More people have access to clean water Social norms increasingly support the pursuit of future-fitness Others generate fewer GHG emissions GHGs are removed from the atmosphere Others generate fewer harmful emissions Harmful emissions are removed from the environment Others generate less waste Waste is reclaimed and repurposed mapped to the Integrated Reporting <IR> Capitals Individual freedoms are upheld for more people Social cohesion is strengthened Others cause less ecosystem degradation Ecosystems are restored Others cause less damage to areas of high social or cultural value Areas of high social or cultural value are restored Assessing and reporting on Do-Some Good / Positive Pursuits The assessment of a company’s optional positive pursuits is organized around four levels, in increasing order of significance: input, outcome and impact. A company can choose which of the four levels of assessment to report on for any given project or product, depending on its characteristics and progress. Future-Fit Business Benchmark (FFBB) 23 Cause-No-Harm / Break-Even Goals Energy is from renewable sources Business is conducted ethically Water use is environmentally responsible and socially equitable Right tax is paid in the right place at the right time Natural resources are managed to respect the welfare of ecosystems, people, and animals Lobbying and corporate influence safeguard the pursuit of futurefitness Financial assets safeguard the pursuit of future-fitness Procurement safeguards pursuit of future-fitness Four key concepts / dimensions / factors – scale, depth, duration and significance – frame the extent of a project’s positive impacts at each level, whether intended or realized. The most reliable way to assess the project against the four concepts / dimensions / factors is to compare the results with a ‘counterfactual’ – what would have happened in the absence of the company’s intervention. Sources: • Future-Fit Business Benchmark R 2. 1, April 2019 (futurefitbusiness. org) • The International <IR> Framework (integratedreporting. org) • Sustainability ROI Workbook v 6, March 2019 (sustainabilityadvantage. com), a free-open source resource that calculates the benefits outlined on the next page • FFBB Assessment Toolkit - May 2019 (sustainabilityadvantage. com), a free, open-source workbook that does the FFBB calculations outlined on the next Community health is safeguarded Product concerns are actively solicited, impartially judged, and transparently addressed Product communications are honest, ethical and promote responsible use Products do not harm people or the environment Products can be repurposed Employee health is safeguarded Products emit no greenhouse gases Employees are paid at least a living wage Operational emissions do not harm people or the environment Not subject to discrimination Operations emit no greenhouse gases Subject to fair employment terms Operational waste is eliminated Employee concerns are actively solicited, impartially judged, and transparently addressed Operations do not encroach on ecosystems or communities Assessing and reporting on Cause-No-Harm / Break Even goals Performance on all 23 necessary science-based goals is on a scale of 0 -100%. Primarily employee-related goal Primarily society-related goal Primarily environment-related goal
Assessment of performance on FFBB goals enables assessments of additions or subtractions to <IR> capitals 23 FFBB Cause-No-Harm Goals 24 FFBB Positive Pursuits Success (0 -100%) in meeting these goals = progress on not decreasing the value of associated natural, human and social capitals The value-adding impacts are framed around four key concepts / dimensions / factors: scale, depth, duration and significance Energy is from renewable sources. Company impact on the value of its natural, human and social capitals is assessed using scores on associated FFBB goals. Others depend less on non-renewable energy More people have access to energy Operations emit no greenhouse gases. Others generate fewer greenhouse gas emissions Products emit no greenhouse gases. Greenhouse gases are removed from the atmosphere Water use is environmentally responsible and socially equitable. Others contribute less to water stress Natural resources are managed to respect the welfare of ecosystems, people and animals. 1 More people have access to clean water 2 (Assessed using scores on associated FFBB goals) Others depend less on inadequately-managed natural resources. Others generate less waste Operational waste is eliminated. Waste is reclaimed and repurposed Products can be repurposed. Others generate fewer harmful emissions Operational emissions do not harm people or the environment. Harmful emissions are removed from the environment NATURAL CAPITAL The Sustainability ROI Workbook assesses the direct and indirect benefits that result from improving the value of natural, human and social capitals. Energy savings Water savings Materials savings Waste savings Carbon savings Travel savings Shipping savings Maintenance savings Litigation savings Compliance savings Insurance savings Others cause less ecosystem degradation Products do not harm people or the environment. Operations do not encroach on ecosystems or communities. Procurement safeguards pursuit of future-fitness. Ecosystems are restored HUMAN CAPITAL Others cause less damage to areas of high social or cultural value Areas of high social or cultural value are restored Employees are paid at least a living wage. 2 Employees are subject to fair employment terms. Employee concerns are actively solicited, impartially judged and transparently addressed. Employees are not subject to discrimination. More people have access to economic opportunity Employee health is safeguarded. Individual freedoms are upheld for more people Product communications are honest, ethical and promote responsible use. People’s capabilities are strengthened More people are healthy and safe from harm Product concerns are actively solicited, impartially judged and transparently addressed. Social cohesion is strengthened Community health is safeguarded. Infrastructure is strengthened in pursuit of future-fitness Financial assets safeguard the pursuit of future-fitness. Market mechanisms are strengthened in pursuit of future-fitness Business is conducted ethically. Governance is strengthened in pursuit of future-fitness The right tax is paid in the right place at the right time. Social norms increasingly support the pursuit of future-fitness Lobbying and corporate influence safeguard the pursuit of future-fitness. 1 2 (Assessed using scores on associated FFBB goals) SOCIAL AND RELATIONS HIP CAPITAL (Assessed using scores on associated FFBB goals) How much the value of this capital was increased Percent progress toward not decreasing the value of this capital Security of supply Less volatile costs Access to capital Better reputation Better social license Higher asset values Higher brand value Higher market value Purpose fulfillment Better governance Risk mitigation Employee engagement Employee productivity Employee innovation Hiring savings Winning talent wars Employee loyalty Attrition savings Better reputation Better social license Higher brand value Purpose fulfillment Better governance Risk mitigation More revenue Access to capital Better reputation Better social license Higher brand value Higher market value Purpose fulfillment Better governance Risk mitigation The monetized benefits from increased natural, human and social capitals contribute value to the company’s financial, manufactured and intellectual capitals FINANCIAL CAPITAL $ MANUFACTUR ED CAPITAL $ INTELLECTUAL CAPITAL $
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