What's in a word?

The English language is a source of constant fascination for me. Particularly, when a younger generation changes the meaning of words; leaving their elders in a temporary state of befuddlement. Examples abound. Do you remember when “bad” became “good?” As in he or she is baaad! Most recently, my 12-year old son has taken to calling things that are good to the extreme, “sick.”

Words need not spring from the street to change, or at least evolve.

 
From the Deloitte US 2009 Corporate Responsibility Report:
“It’s possible that the most intriguing word of the still young 21st century is sustainability. Early on, a business that was considered sustainable was one that could be expected to endure and sustain itself because it had a viable business proposition that represented more than fleeting value in the marketplace. During the post Sarbanes-Oxley era, sustainability became popular in reference to internal controls that were necessary to stay in business. Then, over the last five years, the growing wave of emphasis on the environment has made sustainability synonymous with greening and consideration of the consequences or impact that our actions have for our communities and the planet now and for generations to come.”

Somewhat vexing is the continued ebb and flow between corporate responsibility (CR) and corporate social responsibility (CSR). They often describe what appears to be the same thing. Do they mean the same thing? We don’t think so.

Is it an accident that Deloitte has a CR Policy? Not a CSR Policy? Ever wonder why?

I think it’s because at Deloitte, CR is a business imperative with bottom-line impact.  Eliminating the social allows focus on CR as a strategic business direction that’s consistent with our values and culture, but ultimately as smart as it is good. 

However, many admired organizations still use CSR, even some folks within Deloitte. Don’t they get it or are we missing something?  What do you think?

Jack McFadden, Corporate Responsibility Communications Director, Deloitte Services LP

As used in this document, “Deloitte” means Deloitte Financial Advisory Services LLP and Deloitte & Touche LLP, which are separate subsidiaries of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.  Certain services may not be available to attest clients under the rules and regulations of public accounting.

Planting Down Roofs

  
In the course of your day how often do you look up at the skyline? Food, water, and shelter are the three elements of basic survival, and yet we do not spend much time thinking about shelter. Unless we are without it, it’s broken, or we are on an architecture tour, we tend to ignore the rooftops that populate our lives. With a few notable exceptions, like the movement from thatch to tiles to prevent fire hazards in 1212, based on an edict by King John of England, the evolution of roof technology isn’t that exciting. Things are changing however, and it’s time to start looking up, and thinking green.

A green roof (i.e., vegetated roof or roof garden) is a roof with vegetation planted over a waterproofing membrane. In Europe, green roofs are already abundant, yet their popularity is just beginning to grow  in the United States — particularly in crowded urban settings and cities. In Washington D.C., universities, advocacy groups, Federal Agencies, and condominiums are installing green roofs. Chicago has built one for its city hall, Philadelphia has installed them on schools, and Los Angeles on restaurants. They offer many substantial environmental and economic benefits, including:

• Reduction in a building’s energy, heating and cooling costs
• Minimization of storm water runoff,  city sewer fees, and the urban heat island effect
• Filtration of pollutants and heavy metals from rain water and from ambient air, including CO₂
• Extension of the life of a building’s roof
• LEED credits

What do green roofs mean in relationship to Deloitte?  Recommending that our clients consider installing green roofs on buildings is one example of the many ways we can help our clients achieve their sustainability objectives.  Helping our clients reach their greening goals is one objective I keep in mind while developing and defining the Energy & Natural Resource Management service offerings, as part of the Sustainability & Climate Change IMO. I’m not suggesting that we literally get our hands dirty and plant gardens on top of our client’s roofs, but we should be talking to our clients about how to take advantage of the benefits. And while it may seem backwards, starting at the top, by greening their roof, may be a great foundation for the rest of their sustainability efforts.

 
Greg Aliff
U.S. Energy & Resources Leader
Deloitte LLP

Why IT really matters in executing sustainability programs

I wonder if any company has a really good handle on the wide range of policies, procedures, and processes, along with the many individual projects and programs, which relate to sustainability strategies, goals, and metrics. I’ve been asked if I could identify such a company. I’m still looking.

Do companies have good information regarding the results of their sustainability initiatives? Can they report with confidence measures of tangible and intangible benefits? Do they know if they have taken full advantage of tax incentives and rebates available to offset the costs of our sustainability initiatives? What’s been the actual ROI of abatement and mitigation investments? Do buildings with more natural light really improve productivity and morale, and lead to fewer employee sick days? Are there real impacts on productivity, recruiting or employee retention from sustainability programs?

In my experience, it is difficult to pull all the pieces of the sustainability puzzle together. Ask your executives. Ask your board members. Getting consistent, reliable information about sustainability investments, costs, and results is hard. I think it’s hard, in part, because sustainability initiatives are approached separately, sometimes being tacked on top of the business rather than embedding them into the business. The result is well-intentioned but disjointed efforts performed inside functional or geographic silos with hundreds – or even thousands – of isolated activities. This reality is why I am devoting my time, talent, and energy to “IT for Sustainability.” My focus is on frameworks and enabling technologies to help manage sustainability data and to improve the quality of information used to plan, manage, and report on sustainability programs. I believe there are significant impacts for information technology priorities, projects, and plans at least over the next several years.

Every company has to invest resources in sustainability related initiatives – whether or not they actually use the term “sustainability” or fully embrace the concepts of sustainability. This is just a fact of life in the current environment. So, why not do it in a way that creates more value and better manages risk? Decisions about what investments to make, and judgments about whether projects and programs are delivering the desired results, require reliable information. Monitoring of performance and enforcement of policies will require timely and accurate information. An information-driven approach to sustainability can give even the most complex organizations the power of discipline and the benefits of efficiency.

Making sustainability a central tenet in strategy and operations, rather than something bolted on top of existing business processes, will require new capabilities. No one seems to argue with this point. But when it comes to the question about the role of IT in managing sustainability, there is still much confusion and a lack of clarity. Some are rushing to buy new software tools. But few yet have well-thought out strategies and plans for managing sustainability data, or a roadmap for information technology changes to support sustainability. Even companies where sustainability is a strategic priority can fall into this trap. Some companies have invested in new carbon management software, for example, without first creating a holistic sustainability strategy for the enterprise.

I believe that when IT and business leaders take a moment to think things through, address the underlying needs, and together develop strategies and plans, they will seek integrated technology platforms for planning, monitoring, reporting, controls, risk monitoring, and performance management related to sustainability. Why? For starters, they won’t want a variety of new software tools deployed in different parts of the business. And who wouldn’t want a consistent measurement framework throughout the organization?

So how do we get the right conversations started about information technology and sustainability? IT departments have been involved in sustainability for years through “Green IT” initiatives that reduce energy consumption through data center and infrastructure optimization. This has been important and valuable work, producing tangible benefits. I believe it is time to focus on the broader role of IT in helping to execute sustainability strategies and achieve sustainability goals. To help expand the scope of the discussion, we need a new term that goes beyond IT’s energy saving efforts and encompasses IT’s support of sustainability programs, processes and performance throughout the enterprise. I suggest we use the phrase “IT for Sustainability” or ITFS to refer to this broader role. The use of “ITFS” here at Deloitte is inclusive, running the spectrum from our work on green IT to our assistance in automating sustainability reporting, from development of sustainability performance intelligence to more advanced enterprise sustainability analytics.

Without the right approach to information technology, companies will not be able access the relevant, accurate, and timely information they need to make informed decisions about their sustainability strategies. And as rising energy costs, evolving regulations, and increasing stakeholder expectations make sustainability measures even more important, organizations will need new and better information management capabilities to execute and monitor their sustainability strategies, programs, and projects. IT for Sustainability should organizations to measure, monitor, and report on their sustainability performance, allowing them to truly understand the impacts on financial and operational performance.

Lee Dittmar
Principal, Deloitte consulting LLP