Strengthening Your BrandWith Context-Based Sustainability

Mark McElroyJed Davis

Strengthening Your Brand With Context-Based Sustainability

Mark W. McElroy, Ph.D., Center for Sustainability Performance, Deloitte Consulting, LLP Jed Davis, Director of Sustainability, Cabot Creamery Cooperative

Presenter: Deloitte Consulting

Mark W. McElroy, Ph.D. Director of Research, Center for Sustainability Performance Deloitte Consulting LLP Waltham, MA mamcelroy@deloitte.com www.deloitte.com

Our Agenda

•  Quick introduction to context-based sustainability (McElroy)

•  Case study from Cabot Creamery Cooperative in Vermont where context-based sustainability is being applied (Davis)

Context-Based Sustainability

•  Two broad forms of sustainability management, measurement and reporting – Context-free – Context-based

•  Context consists of background social, economic and environmental conditions in the world (e.g., water resources)

Terminology

•  Sustainability •  Vital Capitals •  Triple Bottom Line •  Organization- not product-centric

Our School of Thought

•  Basic principles – Sustainability – Vital Capitals – Triple Bottom Line – Organization- not product-centric

•  Underlies our entire approach

Context Also Key

•  Imagine financial reports without costs! •  Passes for best practice in non-fin’l

reporting •  Reports must have context to be meaningful •  Global Reporting Initiative (GRI) actually

mandates inclusion of context •  Rarely if even followed

Measurement Implications

•  Metrics are unspecified – Not defined by GRI – Experimentation is the standard

•  “Sustainability quotients” as a solution – Denominators – Numerators – Scores expressed relative to 1.0

Conclusions

•  Context-based approach most compelling –  Internal use – External use

•  Strengthens brand – By appealing to customers – By appealing to consumers – By appealing to shareholders

Cabot Creamery Cooperative

Context-based Sustainability in Action

Presenter: Cabot Creamery

Jed Davis Director of Sustainability Cabot Creamery Cooperative Montpelier, VT 05602 USA Jdavis@cabotcheese.coop www.cabotcheese.coop

Approach

•  Stakeholders •  Well-being •  Duties & Obligations •  TBL Impacts •  Metrics

Sustainability Statement

Living within our means and ensuring the means to live.

Examples

Stakeholder Bottom Line Duty/Obligation

Consumers Social Safe Food

Customers Economic Performance

Community Environmental Water Use

Example: Safe Food

•  Stakeholders = Consumers •  Bottom Line = Social

Example: Performance

•  Stakeholders = Customers •  Bottom Line = Economic

Example: Water Use

•  Stakeholders = Community •  Bottom Line = Environmental

Available Renewable

Water Resources

Water Available for Human Use

Water Available for

Business Use

Calculating Cabot’s “fair share” using economic, per capita & intensity data

Water Available for Nature’s Use

Water Use Compared to Water Availability

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