- Please provide edits in Track Changes by COB February 10 to Adam Siegel at
- Review and suggested changes to the accompanying online Sustainability Resource Library is also due by COB February 10to
- 2017 version will be released by early March
Strategy & Commitment
Dimension / Initiating (1) / Progressing (2) / Excelling (3) / Leading (4) / Transforming (5)Strategy / ▪ Ad hoc efforts, no formal sustainability program or program relies on volunteers only / ▪ Defined sustainability team with responsibilities on short and long-term sustainability strategy
▪ Sustainability strategy is primarily focused on operational priorities rather than sourcing or merchandizing practices / ▪ Defined sustainability team aligns with various key departments on sustainability strategy for the short-and long-term
▪ Sustainability strategy encompasses operations, and merchandizing and sourcing practices / ▪ Sustainability strategy aligns across departments and with overall corporate strategy
▪Incorporates internationally recognized standards (e.g., UNGC, SA8000, etc.) into long-term organizational strategy
▪Balanced scorecard (people, planet, and profit) system in place for reviewing strategies and projects / ▪ Sustainability strategy and corporate strategy are one and the same
▪ Sustainability strategy / results regularly reported to executives and the board
▪ CEO regularly incorporates sustainability strategy in meetingsand communications (e.g. employee town halls / investor calls, etc.)
Materiality / Risk Identification / ▪ Ad hoc efforts to identify sustainability risks and opportunities / ▪ Assesses risks and opportunities through a formal materiality process / ▪ Assesses risks and opportunities and conducts bi-annual review
▪ Assessment incorporates a timeframe of 3-6 years / ▪ Individual departments (e.g., sourcing, operations) review materiality assessment
▪ Uses the same processes to review sustainability risks and opportunities as corporate risks and opportunities
▪ Assessment incorporates a timeframe of more than 6-10 years / ▪ Integration of sustainability and corporate risks
▪ Assessment incorporates a timeframe of more than 10 years
Goals / ▪Annual goals based on cost saving only
▪ No efforts in place to benchmark sustainability goals against peers / ▪ Short- and long-term sustainability goals, mostly focused on operations
▪ Efforts in place to benchmark sustainability goals against peers / ▪ Identifies absolute reduction goals for two or more material risk categories (i.e., energy consumption, water, waste/recycling, sourcing, consumer education)
▪ Routine and comprehensive benchmarking efforts in place to prioritize focus areas / ▪ Defines comprehensive, aggressive, and cross-functional goals addressing all material risk categories
▪Goals address most aspects of sustainability
▪ Includes separate goals focused on supply chains, products, sourcing, and marketing / ▪ Uses global and local context of environmental conditions and aligns with science-based targets to set appropriate goals
▪ Quantitatively links profit goals with sustainability goals
Governance & Executive Engagement / ▪ Ownership and accountability for sustainability has either not been defined or is confined to one function (e.g., Environmental Health and Safety)
▪ No sustainability council in place / ▪ Dedicated sustainability executive to design, manage, and continuously improve sustainability program and initiatives
▪ Sustainability council comprises senior leaders from key functional roles and meets periodically
▪ Accountability is clearly defined for sustainability goals and initiatives / ▪ Board and company leadership develop and/or endorse goals and initiatives to improve sustainability
▪ Sustainability council comprises executives, defines priorities, and periodically reports to senior leaders
▪ Senior management's sustainability roles are clearly defined / ▪ Board oversees and endorses sustainability goals and initiatives
▪ Dedicated executive champion for sustainability appointed by board
▪ Executives from all of the relevant parts of the business are engaged (e.g., strategy, innovation, finance, HR, legal, marketing, sourcing) / ▪ Board and key executives held accountable for sustainability performance
▪ Dedicated Chief Sustainability Officer reports directly to CEO
▪ CSOCEO partner to demonstrate business relevance of program to investors and other stakeholders
Incentives / ▪ Sustainable business and leadership practices do not factor into annual evaluations and compensation / ▪ Performance evaluation and compensation considers multiple "balanced" goals and performance metrics
▪ Include basic sustainability goals for select leaders as part of metrics / ▪ Includes sustainability metrics in annual reviews and performance ratings for each business function
▪Rewards (monetary or non-monetary) biggest contributions to sustainability performance / ▪ Reviews mid-level management processes regularly and links it to sustainability performance
▪ Provides some incentives to influence positive personal behaviors for all employees (e.g., hybrid car or mass transit subsidy) / ▪ Links executive compensation to sustainability performance
▪ Invests in incentives to influence positive employee behaviors (e.g., charging stations for electric vehicles at store or office parking lots)
People & Tools
Dimension / Initiating (1) / Progressing (2) / Excelling (3) / Leading (4) / Transforming (5)Stakeholder Engagement / ▪ Identifies key stakeholders
▪ Identifies some stakeholder concernson a periodic basis but no defined method of proactive engagement / ▪ Assesses stakeholder concerns systematicallythrough materiality analysis
▪ Establishes and communicates methods of stakeholder engagement / ▪ Addresses stakeholders concerns through materiality analysis and identifies some KPIs from the process
▪ Builds relationships with key stakeholders / ▪ Identifies comprehensive list ofKPIs through stakeholder engagement process
▪ Establishes and communicates methods of stakeholder engagementby type and stakeholder group, including frequency of engagement
▪ Incorporates feedback from key stakeholders into sustainability strategy / ▪ Consistently monitors and reports publically on KPIs identified through stakeholder engagement
Employee Engagement / ▪ Educates through basic environmental-awareness signage in stores / ▪ Develops store sustainability team(s) or sustainability advocates to monitor on-site performance and provide feedback to corporate sustainability team
▪ Solicits sustainability suggestions from corporate employees
▪ Hosts events for corporate employees to learn about sustainability in their retail roles and in their home (e.g., Earth Month events) / ▪ Posts store sustainability performance (e.g., energy consumption, waste/recycling generation) for all store associates to compare their store to other similar stores
▪ Develops and maintains online platform for employees to review store & company sustainability performance and submit ideas to reduce environmental footprint / ▪ Provides collaborative forum for high-initiative employees to receive recognition for their sustainability efforts while sharing best practices with colleagues
▪ Holds highly visible senior leadership meetings on sustainability where store employees, sourcing, merchants, logistics, and other staff are recognized / ▪ Regularly educates employees on company sustainability vision and business case to underscore relevance to employee daily work
▪ Trains in-store employees to educate customers about company’s sustainability/eco-awareness efforts
Funding Mechanisms / ▪ Minimal funding dedicated for sustainability programs
▪ No mechanism to track ROI of sustainability efforts / ▪ Ad-hoc funds for sustainability programs (e.g., energy efficiency, recycling programs, marketing, etc.)
▪ Conducts some adjustment of ROI on internal projects to account for sustainability metrics / ▪ Dedicated fund for sustainability programs (e.g., energy efficiency initiatives, recycling programs, etc.) / ▪ Key retail functions include sustainability budgeting (e.g., distribution, sourcing, merchandizing, store operations)
▪ All corporate funding requests routinely include relevant sustainability metrics
▪ ROI of projects considers total cost of ownership and reputational value / ▪ Corporate funding requests always include sustainability metrics relevant to the division or business unit
▪ Sustainability related funding on an upward trajectory over time
Business Innovation
Mechanisms / ▪ No specific channels in place to invest in sustainable innovation (e.g., 3D printing, RFID innovations, mobile, etc.) / ▪ Innovation mechanisms in place - sustainability is a criteria but not weighted to receive favorable score / ▪ Innovation mechanisms in place to invest in sustainable innovations
▪ Solicits ideas from employees, suppliers, and external stakeholders / ▪ Dedicated team to create and invest in sustainable innovations
/ ▪ Innovation fund and dedicated team in place to invest in retail innovation around sustainability
▪ Chief Innovation Officer incorporates sustainability and continuous improvement into goals
Visibility
Dimension / Initiating (1) / Progressing (2) / Excelling (3) / Leading (4) / Transforming (5)Metrics & Measurement / ▪ No defined metrics for sustainability / ▪ Limited set of sustainability metrics; focused mainly on operations
▪ Basic Excel spreadsheets used to track metrics / ▪ Sustainability metrics focused on only certain aspects of sustainability
▪ Metrics informed by materiality assessment and aligned to global frameworks(e.g., GRI, IIRC, SASB)
▪ Sustainability metrics tracked for some regions of the global business
▪ Measurement tools track metrics / ▪ Sustainability metrics focused on all material aspects; including innovation
▪ Sustainability metrics tracked for all of the most relevant regions of the global business
▪ Automated measurement tools; IT systems in place to periodically track the majority of sustainability metrics / ▪ Comprehensive metrics defined to cover all aspects of sustainability; linking people & planet with profit
▪ Material metrics chosen from most global frameworks with rationale for metric selection clearly communicated
▪ Metrics captured consistently across entire organization, globally
Reporting & Communicating / ▪ Regularly published report contains cursory mention of sustainable business practices
▪ Some limited sustainability/CSR information is available on website (e.g., a webpage, or grouped with corporate philanthropy) / ▪ Company either publishes a sustainability report on a regular basis, or provides detailed webpages covering all aspects of sustainability
▪ Sustainability report includes both quantitative metrics and qualitative stories / ▪ Sustainability information is readily accessible in multiple formats and sustainability goals publicly articulated and tracked
▪ Includes a balanced and honest discussion of challenges as well as progress
▪ Discloses climate change, water, or forest-risk impacts as part of the CDP / ▪ Scores in top 10% of industry peers in sustainability measures and indices (e.g., Dow Jones Sustainability Index, Carbon Disclosure Project)
▪ Uses 3rd-party standards (e.g, GRI)
▪ Sustainability statements are independently audited
▪ Communicates sustainability programs in multiple, accessible formats (e.g., websites, product marketing and labeling, advertising) / ▪ Scores in top 5% of industry peers in sustainability measures and indices (e.g., Dow Jones Sustainability Index, Carbon Disclosure Project)
▪ Uses integrated reporting
▪ Focused multi-channel sustainability campaign with features such as an interactive sustainability website
▪ Communicates sustainability as integrated with brand ethos
Point-of-
Purchase
Consumer
Education / ▪ Few products are explicitly designed to reduce negative environmental impacts
▪ Limited education for consumers to learn about sustainability dimensions of products / ▪ Some specifically designated products offered have sustainability benefits; ad hoc communication on the benefits of those products / ▪ High percentage of products offeredhave specific sustainability benefits; regular communication on the benefits of those products
▪ Provides some information or tips to consumers to use products/services in a responsible way (e.g.,"Please recycle this cup when finished", "Wash this garment in cold water") / ▪ Dedicated online storefronts encourage consumers to select products with sustainability benefits
▪ Provides consumers with tools or incentives for sustainable behavior change and actively engages with the consumer even after the purchase (via website, product packaging, etc.)
▪ Significant in-store signage or sections dedicated to products with advanced sustainability benefits / ▪ Engages consumers about products with sustainability benefits (e.g., catalogs, web filters, icons, online calculators, product stories)
▪ Actively engages with customer even after the purchase (via website, product packaging, etc.) to mitigate any environmental impact of products
▪ Most own-brand products have advanced sustainability benefits, and communicate benefits on packaging
Marketing Campaigns / ▪ Ad hoc sustainability-related marketing campaigns / ▪ Regular sustainability-related marketing programs
▪ Tend to focus on specific themes or times (e.g. Earth Day) / ▪ Ongoing efforts and funding related to marketing sustainable products and services / ▪ Dedicated sustainability focused marketer within marketing team
▪ Marketing effectiveness metrics focus on reputation/brand value / ▪ Significant marketing budgets for sustainability-related marketing
▪ Marketing effectiveness metrics include financial ROI
Collaborative Involvement / ▪ Does not formally engage with peers on sustainabilityissues / ▪ Actively shares sustainability information with peers / ▪ Member of one or more industry associations focused on sustainable supply chain issues
▪ Actively collaborates with peers to make positive impact within industry / ▪ Premier member of one or more industry associations or multi-lateral groups focused on relevant sustainability issues
▪ Partners with NGOs, governments, academia, or other institutions to identify improvement opportunities / ▪ Takes a leadership role in developing new tools or capabilities that will enable peers to improve sustainability impact
▪ Takes a leadership role in developing new tools or capabilities that will enable entire value chainsto improve sustainability performance
Retail Operations
Dimension / Initiating (1) / Progressing (2) / Excelling (3) / Leading (4) / Transforming (5)Stores / Corporate Offices
(Green Building & Land Use) / ▪ Construction, renovation, and leasing decisions adhere to local regulations, but little or no 'green' standards
▪ Environmental impact, energy use, and occupant health are only minor considerations / ▪ Incorporates some 'green building' opportunities into construction, renovation, or leasing projects
▪ Opportunities are limited to lower-cost options (e.g., efficient toilets, faucets, light bulbs, and ceiling fans; recycled / reclaimed flooring; low-VOC paint)
▪ Small percent of facilities have ENERGY STAR or LEED certification / ▪ Routinely incorporates sustainability metrics into construction, renovation, and leasing decisions
▪ Accounts for sustainability factors (e.g., recycling infrastructure, alternative transportation for customers, etc.) in store site selection
▪ Higher percent of facilities have ENERGY STAR or LEED certification / ▪ Majority of store site incentivizes customers to practice sustainable behaviors (e.g., premium parking spaces for hybrid or electric vehicles)
▪ At least half of facilities have ENERGY STAR or LEED certification
▪ Implements smart landscaping at some store and warehouse sites to improve water efficiency / ▪ Green building and certification (LEED, BREEAM, Living Building Challenge, EPA ENERGY STAR, etc.) is expected on all projects, except in extreme cases
▪ Routinely employs smart landscaping, solar panels, wind turbines, or other technologies in the design and construction of new stores, and warehouses
Warehouses/ DCs / ▪ Storage facilities do not employ any eco-efficient technologies or practices
▪ Emissions are compliant but not fully contained and inventoried / ▪ Programs are in place to minimize waste and improve work flow
▪ Upgrades moving technologies (forklifts, automated belts, etc.)with energy-efficient power sources
▪ Installs low-energy lighting, HVAC, and refrigeration equipment / ▪ Redesigns warehousing facilities in order to optimize space and reduce energy consumption
▪ Continuously minimizes footprint and resource consumption to create best uses for storage space and replaces non-sustainable products / ▪ Regularly adds new technology to reduce energy consumption in moving and storing goods within warehouses
▪ Incorporates green standards for all new warehousing to minimize energy and safety costs / ▪ Incorporates green standards for all new warehousing or retrofits existing warehousing to minimize energy and safety costs
▪ Develops partnerships with customers, upstream processes, and transportation vendors to maximize flow of goods through facilities while minimizing waste
Data Center & Applications / ▪ Application development has little or no awareness of potential techniques for greening
▪ Does not consolidate applications
▪ Sizing and layout of owned or contracted data center infrastructure is ad hoc and geared towards meeting current needs
▪ There are no explicit decisions around green IT considerations / ▪ Reduces redundant functions in inventory of applications
▪ Employs some efforts to consolidate applications
▪ Takes advantage of new efficiency methodologies in application development
▪ Identifies and monitors some green metrics around power, cooling, and airflow / ▪ Considers and tracks green impact along with other business objectives in data center
▪ Shares applications and related platforms across business units
▪ Software development lifecycle regularly uses new efficiency technologies (e.g., virtualization, SOA and other sharing and flexible technologies)
▪ Follows green technology standards throughout organization / ▪ Fully leverages enterprise software across the organization to maximize use/capabilities
▪ Actively tracks green metrics against business green objectives
▪ Participates in ENERGY STAR recognition program for energy efficient data centers / ▪ All data center build outs or contracts must pass through a rigorous green evaluation process before approval
▪ Seeks to improve ENERGY STAR scores for all data centers
▪ Employs effective 'big data' strategies to analyze sustainability data and metrics
Supply Chain
Dimension / Initiating (1) / Progressing (2) / Excelling (3) / Leading (4) / Transforming (5)Transportation / Logistics / ▪ Aware of impact of transportation decisions on the environment
▪ No precision or baseline emission measurements
▪ Does not implement sustainable transportation initiatives or they are in early planning stages / ▪ Employs improved blend of rail, road, and air transportation modes
▪ Includes capacity managementas a criteria in managing distribution
▪ Uses or tests some alternative fuels in transportation vehicles
▪ Participates in EPA SmartWay
/ ▪ Packaging and transportation system designs concurrently occur to optimize flow of goods and minimize space and energy usage
▪ Develops innovative shipping mechanisms to maximize load capacity
▪ Uses reusable containerization for nearly all products
▪ Recognized EPA SmartWay Carrier & Shipper with a highly ranking score / ▪ Demonstrates reduction of environmental impact by optimizing transportation & warehouse network
▪ Replaces vehicle fleet with 'green vehicles'
▪ Considers emissions when selecting transportation vendors / ▪ Forms transportation alliances to maximize load capacity and minimize waste
▪ Recognized excellence in reducing environmental impact from transportation strategies
Supplier Engagement / ▪ Does not explicitly consider sustainability dimensions in sourcing process
▪ Supplier code of conduct addresses various environmental aspects, but may be missing certain key attributes from recognized industry standards (e.g., SA8000)
▪ Audits suppliers according to a risk profile or in response to problems
▪ No formal internal management system for tracking audits and remediation steps / ▪ Incorporates key sustainability considerations into initial supplier onboarding and ongoing sourcing decisions
▪ Supplier code of conduct incorporates all dimensions of recognized industry standards