The Science of Sustainability: A framework for defining and measuring KPIs and implementing continuous improvement strategies

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1 The Science of Sustainability: A framework for defining and measuring KPIs and implementing continuous improvement strategies Marty Matlock, PhD, PE, BCEE Executive Director, Office for Sustainability Professor of Ecological Engineering Biological and Agricultural Engineering Department University of Arkansas mmatlock@uark.edu

2 Everything is Connected 2

3 Everything is changing 3

4 We are all in this together 4

5 Everything is Connected 5

6 We are all in this together Billions Less Developed Regions 2 1 More Developed Regions Source: United Nations, World Population Prospects: The 2004 Revision (medium scenario),

7 GHG Concentrations in Atmosphere Climate Impacts The Great Acceleration Ocean Impacts Steffen, W., Persson, Å., Deutsch, L., Zalasiewicz, J., Williams, M., Richardson, K.,... & Svedin, U. (2011). The Anthropocene: From global change to planetary stewardship. Ambio, 40(7), Terrestrial Impacts 7

8 Economic Growth Water Resource and Ag Development Prosperity Consumption The Drivers of Change Steffen, W., Persson, Å., Deutsch, L., Zalasiewicz, J., Williams, M., Richardson, K.,... & Svedin, U. (2011). The Anthropocene: From global change to planetary stewardship. Ambio, 40(7), Global Connectivity 8

9 Consumers get information from everywhere without filters 9

10 Sustainability is Continuous Improvement 1. Define A. Define Sustainability for the Enterprise B. Define Key Performance Indicators C. Select Metrics for KPIs 2. Measure A. Benchmark KPI Metrics B. Set Goals for Each KPI C. Develop Strategy to Meet Goals 3. Implement A. Implement the Strategy B. Measure, Assess and Report Results C. Adapt Strategy to Improve Outcomes 10

11 Planning Horizon Framework of Goals Aspirational Long Vision Strategic Tactical Management Operational Short Breadth of Goal

12 KPI Metric Sector-Level Continuous Improvement Versus Site Certification Benchmark Year Continuous Improvement Approach Minimum Acceptable Performance Level (MAPL) Site Certification Approach

13 How to Move the Curve

14 Field to Market: The Alliance for Sustainable Agriculture focuses on defining, measuring and advancing the sustainability of food, fiber and fuel production George Thoma

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16 How We Define Sustainable Agriculture Meeting the needs of the present while improving the ability of future generations to meet their own needs Increasing productivity to meet future food and fiber demands Improving the environment Improving the social and economic well-being of agricultural communities

17 Criteria for Key Performance Indicators of Sustainable Agriculture Key Performance Indicators (KPIs) are things we measure to inform decisions. KPIs should be: 1. Outcomes Based. 2. Science Driven. 3. Technology Neutral. 4. Transparent.

18 Field to Market Programs National indicators report: Documentation of overall trends Grower Fieldprints: Individual opportunities for continuous improvement Supply chain projects: Direct engagement in continuous improvement Public data and models Collaboratively developed Outcomes based

19 BENCHMARKING U.S. SOYBEAN SUSTAINABILITY KPIs 19

20 Using the Fieldprint Calculator to Evaluate Goals: The Crete, NE Pilot Project

21 SUSTAINABILITY GOALS: The pathway to continuous improvement The U.S. Soybean Sustainability Assurance Protocol 21

22 SSAP KPI BENCHMARK TO 2000 PERFORMANCE DATA Key Performance Indicator Unit of Measure Value Metric Type Land Use Planted acres per bushel Efficiency Soil Erosion Tons per bushel Efficiency Total Soil Erosion Million tons per year Impact Irrigation Water Use Acre inches per bushel 0.77 Efficiency Total Irrigation Water Use Million acre inches per year 42.2 Impact Energy Use BTUs per bushel 44,840 Efficiency Total Energy Use Trillion BTUs per year 116 Impact GHG Emissions Pounds CO 2 e per bushel 8.2 Efficiency Total GHG Emissions Billion Pounds CO 2 e per year 22.0 Impact

23 SSAP Sustainability Goals for US Soybeans by 2025, from 2000 Benchmark Key Performance Indicators Unit of Measure Total Potential Reduction (%) Land Use Planted acres per bushel 10 Soil Erosion Tons per bushel 25 Energy Use BTUs per bushel 10 GHG Emissions Pounds CO 2 e per bushel 10

24 Sustainability Framework 1. Define A. Define Sustainability for the Enterprise B. Define Key Performance Indicators C. Select Metrics for KPIs 2. Measure A. Benchmark KPI Metrics B. Set Goals for Each KPI C. Develop Strategy to Meet Goals 3. Implement A. Implement the Strategy B. Measure, Assess and Report Results C. Adapt Strategy to Improve Outcomes 24