Global Business Trends Sustainable Management
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1 Global Business Trends Sustainable Management Dr. Joel B. Carboni
2 Your Joel B. Carboni Ph.D. IPMA Level B GPM PSM3 - Father of two (four and five years old) - 20 Years of Portfolio, Program, and Project Management Experience - President of IPMA-USA and Founder Green Project Management (GPM Global) IPMA Achievement Award Recipient for Integrating Sustainability in Project Delivery World CSR Congress - Global Sustainability Leadership Award World HRD Training and Development Leadership award Recipient - Representative to the United Nations Global Compact, PRME, Anti-Corruption, and Caring for Climate initiative - Architect of the GPM P5 Standard for Sustainability in Project Management and PRiSM Methodology Greenprojectmanagement.org
3 Where I am from
4 Who or what is GPM? Sustainable Project Management or Change Delivery Professional Development Organization Services in over 145 Countries Training through partners (Corp., University, Associations) Certification of individuals (GPM-b, GPM, and GPM-m ) Sustainable PM Methodology (PRiSM ) Organizational Sustainability Materiality Assessments (PSM3 ) Sustainability Centre of Excellence Standards (P5 Standards for Sustainability in Project Management)
5 Sustainability United Nations Global Compact First to advocate for projects and sustainability United Nations PRME (Principles for Responsible Management Education) Supporting Organization One of only 14 worldwide The Earth Charter Endorsers Taken part since the initial 2001 Summit UN Business for Peace Initiative Founding signatory Global Reporting Initiative Organizational Stakeholder Caring for Climate Business Supporter Business Against Corruption Founding Signatory Greenprojectmanagement.org
6 Organizations who have been strengthened by GPM New Balance Oxfam Hewlett Packard Environment Canada World Wildlife Federation Bombardier Dubai Energy and Water Authority U.S. Navy Greenprojectmanagement.org
7 What is Sustainable Development and Why focus on it?
8 Level of Integration Crisis Management Compliance Resource Optimization Market Differentiation Purpose Driven Growth Driver Context Measures Lenses Environmental Productivity Asset Life-Cycle Cost Benefit Risk Mitigation / Brand Protection Organizational Perspective Stakeholders Economical Culture Executive Strategy Change - Portfolios, Programs, Projects Societal Operations Greenprojectmanagement.org
9 2030 Agenda for Sustainable Development Greenprojectmanagement.org
10 CEOs believe that the SDGs provide opportunity 89% say commitment to sustainability is translating into real impact in their industry 85% see cross-sector coalitions and partnerships as essential to accelerating transformation 73% believe that business should develop common indicators to measure and communicate impact on the SDGs 87% believe the SDGs provide an opportunity to rethink approaches to sustainable value creation Greenprojectmanagement.org
11 #9 Gender Equality and Empowering Women and Girls End all forms of discrimination against all women and girls everywhere Ensure women s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life Greenprojectmanagement.org
12 #11 INNOVATIVE INFRASTRUCTURE Reduce the adverse per capita environmental impact of cities provide universal access to safe, inclusive and accessible, green and public spaces adopting and implementing integrated policies and plans towards inclusion, resource efficiency, mitigation and adaptation to climate change Greenprojectmanagement.org
13 #13 CLIMATE ACTION Energy Efficiency Environmental Investments GHG Emissions Risks and Opportunities due to Climate Change Greenprojectmanagement.org
14 What are the needs of the Solomons? The priorities of the Solomon Islands for the centres on the economic pillar of Sustainable Development with a clear intention to provide the necessary resources to address the environmental and social protection pillars.
15 What are the needs of the Solomon's? Equitable and Sustainable Rural and General Economic Development Good Governance and Leadership at all levels Invest in Human Resources, Education Infrastructure and Institutional Development Improve Health and Medical Services Improve Water Supply and Sanitation Law and Order and Peaceful Country Improve Social and Cultural Services Promote Green Growth Improve the Integrity of Marine and Oceans Environment and Resources Increase Education and Employment Opportunities Sustainability of Livelihood and Access to Basic Infrastructure and Services Environment Protection and Resource Management
16 The world in which business operates in is changing has changed. $33,000,000,000,000 (USD) 16 Greenprojectmanagement.org
17 A Growing Problem o According to Global Footprint Network s calculations, our (global) demand for renewable ecological resources and the services they provide is now equivalent to that of more than 1.6 Earths. o The data shows us on track to require the resources of two planets well before midcentury. August 8 th 2016 was Earth Overshoot Day August 13 th 2015 was Earth Overshoot Day August 19 th 2014 was Earth Overshoot Day (We don t have 1.6 Planets) Greenprojectmanagement.org
18 Paris Agreement Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries Integrate climate change measures into national policies, strategies and planning Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning Implement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly $100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully operationalize the Green Climate Fund through its capitalization as soon as possible Promote mechanisms for raising capacity for effective climate changerelated planning and management in least developed countries and small island developing States, including focusing on women, youth and local and marginalized communities Lise Kingo, UN Global Compact Executive Director Speaking at COP21
19 Disruption Why is this word so important?
20 Since the beginning of time Greenprojectmanagement.org
21 Executives Speak Up 80% 77% 62% Action on climate change is an urgent priority for my business Climate change will create opportunities for growth and innovation for my company in the next 3-5 years CEOs believe they can not quantify the value or their sustainability initiatives Data based on survey of 75 CEOs of Caring for Climate participant companies; data represents proportion of respondents selecting agree and strongly agree.
22 How it should look! Greenprojectmanagement.org
23 Minding the Gap SDGs SDGs Combined Impact of Objectives (Most Organizations) GAP Global Societal Needs (Where Organizations should be) SDGs SDGs
24 Define Priorities: Map the Value Chain Increasing Positive Impact Raw materials Suppliers Inbound Logistics Company Operations Distribution Product Use Product End of Life Minimizing Negative Impact
25
26 Six Principles for sustainable project management Commitment and Accountability Recognizing the essential rights of all to healthy, clean and safe environments, equal opportunity, fair renumeration, ethical procurement, and adherence to rule of law Ethics and Decision Making Supporting organizational ethics, decision making with respect for universal principles through identification, mitigation, and the prevention of adverse short and longterm impacts on society and the environment Integrated and Transparent Fostering the interdependence of economic development, social integrity, and environmental protection in all aspects of governance, practice and reporting SRC. greenprojectmanagement.org/principles
27 Six Principles for sustainable project management Principles and Values Based Conserving and enhancing our natural resource base by improving the ways in which we develop and use technologies and resources Social and Ecological Equity Assessing human vulnerability in ecologically sensitive areas and centres of population through demographic dynamics Economic Prosperity Establishing fiscal strategies, objectives, and targets that balance the needs of stakeholders, including immediate needs and those of future generations
28 The P5 Standard for Sustainability in Project Management
29 33,000+ Downloads of P5 39% are Project Managers 19% are Academic 17% are Sustainability Professionals 11% are Executives 8% Training Providers 6% are Government Officials 76% of downloaders Put P5 into practice 93% who have adopted have seen a tangible increase in project performance 94% of Executives stated that projects and project management are integral to sustainable development Downloaded by 147 Countries 38% The Americas 44% Europe 10% Asia Pacific 6% Africa 2% Middle East Top Four Reasons for Download 1. To learn how projects and sustainability converge 2. To help measure projects for sustainability 3. Academic research 4. To help in attaining certification Download for greenprojectmanagement.org/p5
30 Linkage to the SDGs 30
31 Society (People) Project Product impacts from the project outcome Objectives & Efforts and Lifespan & Servicing Process impacts from the approach Maturity and Efficiency Environmental (Planet) Economic (Prosperity) Labor Practices & Decent Work Society and Customers Human Rights Ethical Behavior Transport Energy Water Consumption Return on Investment Business Agility Economic Stimulation Employment and Staffing Labor/ Management Relations Project Health and Safety Training and Education Organizational Learning Diversity and Equal Opportunity Local Competence Development Community Support Public Policy/ Compliance Customer Health and Safety Product and Service Labeling Market Communications and Advertising Customer Privacy Non- Discrimination Freedom of Association Exploitative Child Labor Forced or Compulsory Labor Investment and Procurement Practices Bribery and Corruption Anti- Competitive Behavior Local Procurement Digital Communication Traveling and Commuting Logistics Energy Consumption Co2 Emissions Clean Energy Return Renewable Energy Water Quality Water Consumption Sanitary Water Displacement Recycling Disposal Contamination and Pollution Waste Benefit Cost Ratio Direct Financial Benefits External Rate of Return Internal Rate of Return Net Present Value Flexibility/ Optionality in the project Increased Business Flexibility Local Economic Impact Indirect Benefits The GPM P5 Standard For Sustainable Project Management Greenprojectmanagement.org
32 Labor Practices and Decent Work Employment and Staffing It is recommended that the following be considered by project management: Engaging staff using appropriate employment types (full time or contract as well as volunteer) Paying liveable wages Use of appropriate employment conditions including provisions for: Healthcare Holiday and parental leave Fair dismissal Allowing the project team to maintain a work-life balance Employment and Staffing achieves a number of sustainable project outcomes including: Providing model employment standards for the organization or industry.
33 3.1 Transport Local Procurement Local procurement achieves a number of sustainable project outcomes including: Supporting the local economy Reducing CO2 from transportation Supporting local businesses and suppliers including improving supplier capacity and experience
34 Project Initiation Pre-Project Project PRojects integrating Sustainable Methods Project Mandate Select Project Sponsor& Project Manager Select Project Planning Team Yes Go/No Go Review Lessons Learned from Previous Projects Reconcile With Organizational Systems Quality Management System (QMS) Sustainability Management System (SMS) Environmental Management System (EMS) Energy Management System (EnMS) Asset Management System (AMS) Risk Management System (RMS) Occupational Health and Safety (OHSMS) Procurement Management System (Others as available) Perform P5 Impact Analysis Define and Section off Sustainability Risks and Opportunities Draft Sustainability Management Plan Perform High Level Costing Analysis Finalized Business Case Phase Review Go/No Go No Lessons Learned Documented Close Project Yes Obtain Sign Off Draft Business Case No End Initative Business Case Updated Proceed to Planning Formalize Project Team Review Business Case and Define Scope Define Sustainable Quality Components Product Breakdown Structure (PBS) Developed Calibrate Estimators and Duration of Activities Perform Risk Assessment Compile Project Management Plan Documents Review Plan and Go Forward Strategy Go/No Go Draft Benefits Management Plan Setup Project Controls And Measurements Work Breakdown Structure (WBS) Developed Review/ Validate Resource Requirements Sustainability Management Plan Refined Yes Obtain Sign Off No Lessons Learned Documented
35 Borneo - Sarawak Tackling Deforestation and Air Pollution in Malaysia and Borneo The private sector must play its part in observing laws. I urge business leaders and project managers to assume the responsibility, ensuring resources are used in a way that they do not compromise the needs of future generations, Talif said at the launch of green project management programmes here recently. He said the business community tended to focus on one P when considering the health of a company. They only look at the P representing profit at the expense of the planet and the people living on it. A recent survey showed that up to 64% of business leaders did not understand how to improve project sustainability, he said.
36 Greenprojectmanagement.org
37 Thank You!!!! Questions? Greenprojectmanagement.org
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