The only guide your company needs to get started on sustainability

How to grow sustainably
Best practices and real-world tips on how to get started
on the path to responsible corporate citizenship

1It’s time to make
sustainability your strategy
Contributors
Managing Editor
Ana Constantinescu
Contributing writers
Kate Ancell
Reva Nelson
Editorial team
Chas Dickinson
Lori Lewis-Chapman
Katie Robson
Creative team
Megan McKenna
Angela Novak
Bridget Shafer
Hans Sundquist
Subject matter consultants
Dorsey Baskin
Robert Conlon
Jeff French
Bailey Jordan
Brian Larsh
Mark Lemon
Dexter Manning
Jose Molina
Tony Perazzo
Tim Schram
Robert Schwartz
Winnie Steffenson-Click
Rob Tague
7Taxes and incentives
2Industry benchmarking
8Risk management
3Global benchmarking
9Performance improvement
4Business strategy
10Hiring and retaining talent
5Supply chain
11Subject matter
consultants
Connect with us
grantthornton.com
@grantthorntonus
linkd.in/grantthorntonus
6
Measurement and reporting
IT’S TIME TO MAKE
SUSTAINABILITY
YOUR STRATEGY
2 3

54 Table of contents
Jeff French
Manufacturing Practice Leader
T +1 920 968 6710
E jeff.french@us.gt.com
Dexter Manning
Food and Beverage Practice Leader
T +1 404 475 0061
E dexter.manning@us.gt.com
Connect with us
When you’re ready to talk
about your sustainability
plans, the following
practice leaders can
answer your questions:
All these are good answers. In fact, these are
the top three sustainable activities among food
and beverage companies — from manufacturers
to distributors to retailers — according to a
Grant Thornton LLP survey (you can read more
findings in the next section).
But there’s a catch: These are just activities, limited
in scope and effectiveness. They can make a small
difference in the short term and earn you 15 minutes
of good PR, but all stops there. To truly achieve the
status of a sustainable, socially conscious company,
you need to take action in the right direction and with
the right mindset.
When you think about your
company as a sustainable
business, what comes to mind
first? Reducing production
waste? Your paper recycling
program? The switch to
energy-efficient lighting?
No longer just a hip term, sustainability has
earned a seat in the boardroom. More and more
companies approach sustainability through the
triple bottom line — social, environmental and
financial — and they are seeing the results. They
help their communities through social programs;
reduce their environmental impact thanks to
efficient, lean operations; and see significant
savings by rethinking how investments are made.
Your company doesn’t need to reach deep into its
coffers to do all this. You can get started on the
path to sustainable corporate citizenship by taking
small but strategic steps. And the good news is
that consumers are on your side, now more than
ever before.
This publication is a roadmap to sustainability ROI.
It gives you the benchmarks, ideas and clear action
items that you can use to go off the beaten path and
into a sustainable future.
Visit grantthornton.com/sustainability

Being a sustainable business is about more than
just reducing waste, especially for food and
beverage companies. It is about attracting and
keeping customers by protecting the environment,
improving lives through social programs and
maintaining corporate accountability.
We surveyed the industry to uncover the state of
sustainability along the food and beverage supply
chain. Our results show that many companies have
built tremendous momentum, yet most are still on
the sidelines.
Sustainability is a priority, yet
a challenge to implement
“Sustainability is top of mind for nearly all
companies, but they pursue it to varying degrees,”
says Tony Perazzo, Grant Thornton Audit Services
partner. “For most, it starts with the customer.
They feel good knowing that they have made a
responsible purchase. And many will choose an eco-
friendly product or brand even if it is a little more
expensive than an alternative.”
68%
68%
67%
64%
How important is sustainability to food and
beverage companies’ business strategy?
Critical to growth
Profit-generating in the long term
Demanded by consumers
A competitive differentiator
Difficult to implement
Profit-generating in the short term
A fad that will disappear in a few years
52%
25%
10%
3 key insights from The State of
Sustainability at Food and Beverage
Companies survey
45%think sustainability is
extremely important
to their business
strategy.
INDUSTRY
BENCHMARKING
• A sustainability-focused business model is no longer a
nice-to-have; it’s an imperative for strategic business leaders
• C-suite commitment is critical to sustainability-related efforts;
charting the course and building a governance process can result
in ROI down the road
• The future of a sustainable food and beverage business — or of any
business — is about collaboration between the key players in the
supply chain, transparency of raw materials (i.e., ingredients) and
consumer education
Read more about this on our website

8 9Table of contents
Leadership commitment, ROI key to
successful sustainability program
Get commitment from the top. Make a clear case for
long-term profitability. Evaluate the strategy from a
holistic, risk-based approach. These are three critical
milestones in getting leadership support for a long-
term sustainable strategy.
Different role in the supply chain,
different attitude toward sustainability
“There is ROI to consider, and the bigger ROI
is going to be in the manufacturing and food
processing part of the supply chain, as well as
in retail, particularly with regard to recycling and
packaging,” says Dexter Manning, Food and
Beverage practice leader at Grant Thornton.
Suppliers and manufacturers are the furthest along
the adoption curve
Supplier Retailer Wholesaler
Followers (compliance) 22% 27% 41%
Mature (risk and cost
management)
27% 31% 13%
Leaders (sustainable
business model)
24% 18% 19%
Champions (large-scale,
sophisticated sustainable
strategy)
13% 9% 3%
Not sure 13% 16% 25%
*
Significant at the 90% level of confidence. Responses do not total 100%
due to rounding.
Top sustainable activities show different priorities
along the supply chain
Supplier Retailer Wholesaler
Reducing
production waste
78% 44%* 38%
Paper and
packaging recycling
69% 69% 53%
Reducing energy
consumption
62% 78%** 47%*
Reducing
consumer waste
53% 45% 38%
Funding social programs 40% 32% 16%*
*Significant at 95% level of confidence.
**Significant at the 99% level of confidence.
Suppliers are more likely to:
• Say that sustainability is critical to growth
and that their customers expect it
• Implement a sustainable business model
• Measure their sustainability efforts
Retailers are more likely to:
• Reduce their energy consumption
• Report savings through energy-reduction
and federal programs
Wholesalers are more likely to:
• Dismiss sustainability as a fad
What factors are
most important
when considering
sustainability?
About The State of Sustainability at Food and Beverage Companies survey
The survey is based on answers from 189 respondents collected in April
and May 2014 from C-suite and senior leaders in food and beverage retail,
manufacturing/supply, and wholesaler/distribution/brokerage sectors.
Participant titles included CEO, COO, CFO, CIO, owner, partner, chairman,
vice president, senior vice president, executive vice president, category
manager, merchandising manager, marketing manager, buyer,
and director/general manager.
Get commitment from the top. Make a clear case for long-term profitability. Evaluate
the strategy from a holistic, risk-based approach. These are three critical milestones in
getting leadership support for a long-term sustainable strategy.
30% 27% 21% 21% 20% 19%

Dexter Manning
Food and Beverage
Practice Leader
WATCH NOW: Manning discusses how
sustainability motivates millennial buyers
Sustainability Q&A
Food and Beverage Practice Leader Dexter Manning
on how sustainability consumers are shaping the
industry’s future sustainability
Let’s set the stage: What
are the biggest trends
you see in the food and
beverage industry?
Click on each question
to reveal the answer
What is one thing that you think
will radically shape the industry
over the next 10 years?
How will food and beverage
companies need to adapt regarding
sustainability and environmentally
conscious shoppers?

How companies around the world act
on corporate social responsibility
.
GLOBAL
BENCHMARKING
• In an interconnected global economy, knowing how businesses
around the world approach sustainability can help American
companies benchmark their efforts.
• U.S. companies cite cost management as a main reason to
implement corporate social responsibility (CSR), but their foreign
counterparts are motivated by customer demand.
• Integrated sustainability reporting is gaining traction internationally —
how will U.S. businesses respond to this potential change?
• A risk and operations management plan is critical if your company
sources from countries that struggle with scarce raw materials,
including water.
Foreign companies are more likely than U.S. firms
to cite these reasons for adopting sustainability:
Customer demand +18 percentage points
Saving the planet +15
Public pressure +13
Tax relief +12
Talent recruiting +11
No matter the geographical location, businesses share
the same top 3 CSR priorities:
U.S. Global
Donating to community causes/charities 93% 68%
Participating in community/charity
activities
93% 65%
Improving energy efficiency/waste
management
90% 65%
As we have read in the previous article, business
as usual doesn’t seem to cut it anymore for many
U.S. companies. But what about companies around
the world? CSR data from the 2014 Grant Thornton
International Business Report reveals surprising —
even unexpected — differences between the U.S.
and other countries.
CSR reporting: Little consensus
feeds into lack of a global framework

21+79+D Only 21%
of U.S. companies plan
to disclose their programs
during the next 5 years
1 in 4 are reporting on sustainability
and/or CSR activities compared
to 1 in 3 globally
Merging nonfinancial (i.e.,
sustainability, CSR) and
financial reporting appeals
more to international
companies than U.S. businesses
89%
of companies in India approve
of merging the two reports,
compared to 51% in the U.S
U.S. companies

Resource scarcity shapes the sustainability
discourse in emerging markets
The concept of sustainability comes to life vividly in
emerging economies that rely exclusively on scarce
natural resources. There, businesses struggle with
the cost and supply of energy and raw materials,
unlike their counterparts in wealthy countries. On
the flip side, it is this struggle that’s fueling India’s
ambitious plans to boost investments in solar power
and Nigeria’s move toward a sustainable approach
to extracting raw materials.
Grant Thornton International Business Report data
brings to life the real challenges of doing business
amid scarce resources in emerging economies.
Here are some of the highlights.
Energy
• Businesses in emerging markets cite energy
as more important to their growth strategy
compared with counterparts in developed
markets.
• More than three-quarters of African businesses
cite the cost and supply of energy as crucial to
their growth plans.
• Relatively few North American and European
businesses are looking to move to greener
sources of energy.
Sustainability
Availability
Cost
Percentage of businesses citing energy as
important to their growth strategy
Raw materials
• Raw materials are relatively more important to
businesses in emerging markets.
• Around two-thirds of businesses in Africa,
Latin America and southeast Asia cite cost as
important to them (or their supply chains) over the
next 12 months (i.e., 2015).
• The availability and sustainability of supply is also
very important in Africa and Latin America.
• Businesses in Europe are the least focused on
raw materials, with fewer than half citing cost,
availability or sustainability as important.
“The energy reforms agreed upon [in 2014]
have not only opened up the oil exploration
sector to foreign investors, breaking the
monopoly of Pemex, but also the electricity
market to small generators. A target to boost
renewables 33% by 2018 has also been agreed
upon, which has helped to attract record
levels of clean technology investment.”
—Mauricio Brizuela, Salles Sainz, Grant Thornton (Mexico)
About the Grant Thornton International Business Report survey
The Grant Thornton International Business Report is the world’s leading
midmarket business survey, interviewing approximately 2,500 senior
executives every quarter from listed and privately held companies all over
the world. Launched in 1992 in nine European countries, the report now
surveys more than 10,000 businesses leaders in over 30 economies on
an annual basis, providing insights on the economic and commercial issues
affecting companies globally.
The data used to write this section is drawn from more than 2,500
interviews with CEOs, managing directors, chairmen and other senior
decision-makers from all industry sectors in midmarket businesses in 34
economies conducted in May 2014. The U.S. sample was 300 companies.
The definition of mid-market varies across the world: In China, we inter-
viewed businesses with 100–1,000 employees; in the United States, those
with $20M–$2B in annual revenues.
Sustainability
Availability
Cost
Percentage of businesses citing raw materials
(including water) as important for them or their
supply chain
European Union
Global
North America
Southeast Asia
Latin America
Africa
44%
55%
57%
65%
69%
49%
53%
54%
55%
68%
43%
40%
65%
71% 74% 65%
51%
30%
European Union
Global
North America
Southeast Asia
Latin America
Africa
51%
52%
54%
67%
72%
37%
55%
48%
56%
65%
30%
34%
64%
76% 79% 51%
49%
22%

BUSINESS STRATEGY
• Strong commitment to sustainability from your leadership is critical;
arm yourself and your team with a well-documented business case
• Setting goals, metrics and a governance process will solidify
sustainability as a key business strategy
• Don’t shy away from picking low-hanging fruit; starting small with
energy-saving, waste-reducing strategies could pave the road to
deeper changes that will raise your company’s sustainability score
• No one can be sustainable on an island; champion your cause among
your business partners and open up for new ways to collaborate
toward a shared goal
How to build a case for a
sustainable business strategy
“How big is the area where the chickens are allowed
to roam free?” asked a cast member in a Portlandia
episode. Although the comedy series took the notion
of responsible, ethical and sustainable food supply
to a level of absurdity, you can bet that many of your
customers are thinking along the same lines. And
when they ask, how will your company respond?
There is a case to be made for change and we
all agree that we want to do the right thing. But
what does it really mean for your company?
The thought of tackling an evolving concept as
big as sustainability can seem overwhelming
to contemplate and difficult to implement. The
measurement tools may seem nebulous. And the
initial investment can feel prohibitive. But it doesn’t
have to be that way.
From our sustainability survey

44+56+D
10+90+D
44%
Only 10%
rated sustainability as
extremely important in their
company’s business strategy.
think sustainability is a
fad that will disappear
in a few years.
Nearly 7 in 10
said sustainability is not only critical to
growth but also profitable in the long run.
More and more companies — your
competitors — have put sustainability at
their business core and are partnering all the
way down the supply chain. Businesses not
following suit are falling behind.

6 QUESTIONS TO FIND OUT IF YOUR COMPANY IS READY TO EMBRACE SUSTAINABILITY
Put a plan in place
When all the players in your company understand the importance and
rewards of instituting a sustainability program, you’re ready to take the
next steps:
1
1. Get C-suite buy-in — Having the leadership’s
nod of approval is key, says Dexter Manning, Food
and Beverage practice leader at Grant Thornton.
“Education of stakeholders is job one, and the first
hurdle for companies moving toward sustainable
business practices.” Getting this buy-in can be difficult,
because anything involving capital outlay can be hard
to sell. The reality is that more and more companies
(your competitors) have put sustainability at their
business core and are partnering all the way down
the supply chain. Businesses not following suit are
falling behind.
Internally, sustainability efforts enrich the lives of
employees. Says Audit Partner Tony Perazzo:
“Employees are very proud to work for companies
that are focused on sustainability. In return,
businesses get an enriched culture, increased
productivity and loyalty from their people. Ultimately,
this serves to drive brand and market share.”
2. Do your due diligence — Jeff French,
Manufacturing practice leader, recommends: “Talk
to your tax advisers and work with them to find out
what tax and governmental incentives and plans
might be available to you.
2
Do this before taking any other action of your own
because, in many cases, federal governmental
aid decreases as a company’s demonstrated
sustainability practices increase.”
3. Go to the source — Just as you scrutinize your
incentive and investment potentials, you must also
do a deep dive into your company’s relationships
with key partners and stakeholders. In particular,
examine the practices and products throughout
your supply chain. “No one can be sustainable on
an island,” says Manning.
While scouring your supply chain from beginning to
end, look for any deviation from your sustainability
standards. More and more companies are doing
this. Wal-Mart and Home Depot, for example, now
send out sustainability questionnaires to vendors
throughout their supply chains.
4. Create a baseline — As you study the links in
your supply chain, take a baseline reading of your
own company. Real metrics exist to measure your
business’s improvement in sustainability (See p. 9
for some popular options), so it’s important to know
where zero is for your company. Being able to cite
these metrics in an annual report will demonstrate
your company’s commitment to consumers and
shareholders alike.
3
4
5. Pick the low-hanging fruit — It’s not necessary
— and often not financially viable — to make major
systemic changes in your business’s footprint. Even
a relatively minor outlay into new equipment can lead
to huge utility savings due to the increased energy
efficiency of the product, and will also sharply cut
your use of fossil fuels.
6. Take ownership — More and more companies,
from small startups to global organizations, are
appointing sustainability officers. This is important
because measuring compensation against
sustainability performance keeps it at the forefront of
a company’s mind. Further, it signals to employees
and stakeholders that sustainability is a long-term
strategic business element, rather than a short-term
tactical response.
7. Be realistic — Building a sustainability business
plan; implementing it; and seeing real, measurable
results takes time. Says Manning: “We’ve been going
6
5
down the wrong path for a long time. It’s going to
take some time to turn it around.” But the good
news is that, now you’ve got the tools to do it.
It’s possible to hit a roadblock when attempting
such a large undertaking. Most often these hurdles
are caused by the following: a) no top-level buy-in,
which can cause problems when it comes to
securing investment seed money, or b) even with
C-suite buy-in, having trouble finding and securing
investment capital.
Working with a financial expert can often lead
to unexpected and substantial funding sources.
Once the money is secured, demonstrating an
expected ROI and allaying C-suite fears about the
initial expenditure should help to drive alignment.
Empowering employees to become shareholders
in the plan will further raise enthusiasm throughout
your organization.
Does senior leadership understand and
openly support the benefits of building a
sustainable business?
Do people at your company understand the
benefits that increasing sustainability will
bring, both economically and socially?
Is everyone from the top down in full
understanding and agreement about what
steps they plan to take? Do they understand
their role in driving sustainability success?
Is management prepared either to appoint
a sustainability officer or to reduce and/
or reassign tasks to team members, as
needed, to support the process?
Do you have alignment across the
business, including alignment between
resource allocation and investment?
Do you know what credits and
incentives are available to help fund your
sustainability plan?

Sustainability, mission focus, social action, organic
foods, innovation — food and beverage companies
are embracing a wide swath of strategies for
success in today’s market, according to ideas
shared at Grant Thornton’s annual Food and
Beverage Industry Forum held in the fall of 2014
in San Francisco. Speakers and panelists included
C-level executives from Clif Bar, Ocho Candy, Just
Desserts, Mariani Packing Company, Hint Water,
and Mattson and Company.
Here are some of the most interesting takeaways
from the event:
• Sustainability pays off, but not always
immediately. Companies are embracing
sustainable business practices for the good
of the environment but also to streamline
operations, create efficiencies and cut costs.
This takes a certain leap of faith since it often
takes some time to pay dividends.
• Consumers are much more focused on
where their food comes from and how it’s
grown. They’re reading the labels closely. At the
same time, there is still a lot of confusion about
what certain terms mean, such as natural foods
versus organic, and what’s actually nutritious.
More consumer education is needed.
• Mission matters. It’s important to stand for
something beyond just making a buck. What does
my business stand for? Success also depends
on finding people who share passion for the
company’s mission.
• Community engagement is a critical aspect
of employee engagement. Some companies
pay employees to work regularly at a nonprofit
of their choice. Others hire employees directly
from under-resourced communities (i.e.,
empowerment zones).
• Innovation is tricky. Supermarkets say they
want new and innovative products, yet often reject
them for being unfamiliar. Interestingly, going
directly to the consumer can sometimes be an
effective strategy to get buyers to carry new
products. When consumers ask for a product, it
often moves the needle much more quickly.
• Small companies may need crossover
appeal. When their product has crossover
appeal, they can more effectively compete with
specialized manufacturers and retailers in the
organic space.
REAL-WORLD CHALLENGE
How do I prove sustainability ROI to
my company’s skeptical leadership?
Document, document, document. Sustainability
is often considered to be a soft area of focus,
a vast array of green companies — from the
biggest of the big to small mom-and-pop chains
— are living proof that sustainability is driving
success. Research the grants and funding that
are available from federal, regional or local
government bodies to show your leadership
options to offset initial capital expenditure. These
grants will also bolster your case because they
provide future tax relief and cost savings through
efficient equipment and labor processes. And
don’t underestimate the power of peer pressure:
More and more of the big guys, like Target,
Wal-Mart and even McDonald’s, have put their
chips on sustainability and appointed chief
sustainability officers to oversee their efforts.
This level of national buy-in may help to swing
the pendulum in your favor.
21
Food and beverage industry leaders
don’t put all their eggs in one basket

SUPPLY CHAIN
• Are you collaborating with your suppliers? If the answer is no,
make sure you start soon — the ROI of your sustainability-focused
business strategy depends on it.
• Leverage your CFO to drive your goal-driven, measurable
sustainability-related strategy up and down your supply chain.
• Turn to your middle ranks to drive change through the supply
chain — they’ll have the motivation and agency to take action.
• Share the benefits of innovation with your business partners —
no one can be sustainable on an island.
How to champion sustainability
throughout the supply chain
The dialogue about what it means to be sustainable
has broadened in scope — and it’s all about
collaborating with your business partners and
sharing measurable goals.
“Collaboration between manufacturers and their
suppliers is imperative for competition,” says
Robert Schwartz, Grant Thornton principal in the
Business Advisory Services practice. With better,
more sophisticated technology, seamless
integration is now possible across the supply
chain. Automatic trigger points allow businesses
to reduce fire drills and get products to market
more quickly and efficiently. In this environment,
then, “relationships are crucial, to make sure that
all three elements of competition — schedule, cost
and quality — are aligned,” says Schwartz.
If a sound supply chain depends on sound processes
throughout the whole chain, where does sustainability
fit into the picture? Simply put, making changes to
increase green production will, by the very nature
of the enterprise, require streamlining and a radical
rethink of the entire production process. And there’s
only one way to get there: innovation.

60+40+D 60%
of food and beverage
companies source from
sustainable suppliers.
Retailers are the least
likely to contract with
sustainable suppliers.
Many shades of
sustainable suppliers:
Only 4%
of the companies
source 100% from
sustainable suppliers.4+96+D

Investing in innovation critical to
manufacturers and suppliers
In an interview with Harvard Business Review,
Peter Senge described innovation as “what good
businesses do best.”1
To overcome obstacles
to sustainability and help grow your long-term
strategy, Senge says, it’s vital to surround yourself
with employees who can think creatively and be
innovators, keeping in mind the larger business
context and company end goals. These innovators
will lead the scope of product and process redesign,
and will need to think across business platforms to
arrive at the desired end.
Track suppliers with the right metrics
According to Schwartz, there are three important
metrics to determine success or failure in any
initiative: schedule, cost and quality. And it’s
important to create a baseline for your suppliers
right away, as soon as you form a relationship
or initiate sustainability efforts. It’s surprising, he
says, how few businesses take this first vital step.
“If companies have good information — and most
companies don’t — they can quickly learn how
vendors and suppliers are performing, and attack
the issues, says Schwartz.” And by spending
that money to fix the problems, they will in turn
make more money by having more effective and
streamlined processes and procedures.
All this leads back to sustainability. Making seemingly
small process changes at the supplier and vendor
level quickly adds up to a more sustainable business
and financial growth.
Empower your middle ranks to lead
It’s imperative to get C-suite buy-in, of course, both
for social and financial reasons. However, drivers of
sustainable change may be much more likely to be
found among the middle ranks. They are process-
improvement number crunchers or whiz-bang techies
who can see the domino effect of change and the
ultimate financial win at the endgame.2
“I’m a big proponent of shared benefit,” says Larsh.
As innovation is occurring all the way down the the
supply chain, manufacturers and suppliers should
both be able to agree: “Here’s where we’re both
going to improve — be it packaging, or process
improvement. Let’s both have skin in the game.”
Some companies, Larsh notes, have had great
success in that kind of partnership, wherein both
sides invest and both reap the fruits of the benefit.
Schwartz agrees: “It’s got to be a win-win. If a
supplier demonstrates behavior that is good for me
and my business (and vice versa), I want to make
sure they are rewarded for it.”
WATCH NOW: Manufacturing Practice Leader
Jeff French on how manufacturing CFOs can drive
a sustainable supply chain
1
Prokesch, Steven. “The Sustainable Supply Chain,” Harvard Business Review, October 2010. See www.hbr.org for details.
5 QUESTIONS TO CONSIDER WHEN CHANGING SUPPLIERS
Switching to a new vendor may be the perfect time to establish a baseline for your sustainability
goals and related expectations. Procter & Gamble, for instance, offers a very comprehensive
Supply Chain Environmental Sustainability Scorecard that may be of help to you. But first,
here are some questions to consider, as you take a new supplier’s sustainability temperature:
1
2
3
4
5
What is your company’s policy
on environmental sustainability?
Who is in charge of implementing
your programming?
What steps have you taken over
the past three years to increase
sustainability, and what are your
resulting performance indicators?
Where and how do you source your
raw materials?
How do you deliver the final product
to your partners? What is your
transportation carbon footprint?
What is your company’s five-year plan to
increase sustainability and decrease your
footprint on the planet?
More and more, manufacturers are innovating to
attract sustainable suppliers — which is a complete
about-face from the previous balance of power,
notes Brian Larsh, director in Grant Thornton’s
Business Advisory Services practice. For example,
Unilever — a sustainability powerhouse — has
actually created the Unilever Sustainable Living
Lab, which brings together representatives from
governments, nongovernmental organizations and
businesses to review everything from sustainable
sourcing, production and distribution, consumer
behavior, and change to waste and recycling. In its
first outing, the Lab attracted 2,200 registrants from
77 countries.
2
For more insight, see “From Obligation To Desire: 2.5 Billion Aspirational Consumers Mark Shift in Sustainable Consumption,” originally published by CSRwire on Oct. 3, 2013.

The nuts and bolts of sustainability reporting
Middle-market companies have distinct advantages
over bigger firms in pursuing sustainability goals.
“It’s sometimes easier for closely held companies
to pursue sustainability initiatives than large
corporations,” says Tony Perazzo, Grant Thornton
Audit partner. “Closely held businesses that
don’t have to meet Wall Street or private equity
expectations each quarter can take a 20-year view
on sustainability without worrying about coming up
with metrics right away.”
As these companies have matured with
sustainability key to their business model, they
are better positioned to measure sustainability
efforts and maximize their return. Here are the
fundamental first steps:
1. Assess what aspects of sustainability are
relevant and important to the company and
its stakeholders.
2. Consider what your investors, lenders,
customers and employees believe are material
sustainability issues for the business.
3. Design goals and programs that fit your
company, not someone else’s. Decide whether
and to what extent the sustainability goals ought
to include vendors and other third parties.
MEASUREMENT
AND REPORTING
• Don’t dive into sustainability reporting within the first year of
the program; set realistic and measurable goals first, put a
governance process in place, and then choose what kind of
reporting you want to do
• Your CFO will be your best reporting ally — consider involving
him or her in the early stages of the sustainability program to
get early support
• Sustainability reporting will signal to your investors that the
company is healthy and moving in the right direction
3 in 4
58%
24%
50%
16%
Top metrics:
Least popular metrics:
food and beverage
companies measure their
sustainability efforts.
Energy
consumption
Total
waste
Carbon
footprint
LEED
certification

Figure 1: Sustainability reporting regimes
Regime Standards
Global Reporting Initiative
Well-established international framework used by thousands of companies to communicate
with all stakeholders
Sustainability Accounting
Standards Board
U.S.-based regime aimed at investors and conceived within the context of SEC Form 10-K
and its management discussion and analysis section
International Integrated
Reporting Council
Published integrated reporting framework for reporting about value creation to investors
Carbon Disclosure Project Supports a variety of programs for company reporting of greenhouse gas emissions
ISO 14000, 26000 Standards for, respectively, environmental management and social responsibility
Dow Jones Sustainability Indexes Family of indexes evaluating economic, environmental and social performance
FTSE4Good Indexes for several stock bourses based on CSR criteria
AccountAbility AA1000 Standards, including those for assurance
Challenges in developing
measurement systems
Gaining CFO support — The finance function’s
deep knowledge of processes to gather data
and report information is often key to successful
measurement of sustainability efforts. The CFO’s
understanding of the need for process consistency
and internal controls adds tremendous value to
companies’ sustainability efforts. He or she can
also assist in developing management accounting
techniques to measure the inputs and outputs of
sustainability projects. Gaining your CFO’s support
may hinge on making a compelling business case
(for ideas, see article on p.17).
4. Validate the initial list against external sources,
such as the sustainability annual reports of
peer companies and the industry-specific
reporting guidelines offered by Global Resources
International and the Sustainability Accounting
Standards Board (see Figure 1).
5. Manage regulations to reveal unexpected
opportunities. Consider the conflict minerals
reporting mandated by the Dodd-Frank Wall Street
Reform and Consumer Protection Act. A burden
to be sure, but it’s also helped companies gain
a lot of transparency about their suppliers and
supply chain logistics. The smart firms use that
knowledge to improve their operations.
Inadequate or nonexistent information
systems — Does the company have the systems
and people who can capture the necessary
information? “Sustainability data doesn’t come easily
out of the accounting system,” says Jeff French,
Manufacturing practice leader. “In fact, the data may
not even be in any system at all. Sometimes you’ll
need to start by tracking the information manually.”
Building the IT function for sustainability and
ensuring that it is adequately resourced may require
significant effort by the sustainability champions at
the firm.
Gathering data from diverse sources —
Difficulties in data collection multiply for companies
whose data resides in decentralized locations.
Various departments, divisions, subsidiaries,
vendors and others may be incorporated into
sustainability reporting depending on the desired
(or required) reporting boundary. Often the different
IT systems are not under common control, so the
cooperation amongst many parties will need to be
enlisted for accurate and timely reporting.
Reporting standards:
What you need to know
No single organization has the stature or regulatory
authority of a FASB or IASB when it comes to
sustainability reporting (see Figure 1). The lack of
consistency of reported information extends to
variations in what companies report from year to
year, and across companies within an industry.
“Ultimately, we’re going to be moving to a common
platform for reporting, generally accepted
sustainability principles, if you will,” says Dexter
Manning, Food and Beverage practice leader.
“That’s not here yet. But the lack of standards
should not be paramount in the decision-making
of middle-market managers, and it shouldn’t deter
them from pursuing sustainability projects. What’s
important is that sustainability is something that
consumers are increasingly demanding; that
companies continue to move down the sustainability
path; and that they effectively communicate their
progress to customers.”

Step 3:
Solidify your governance
processes to ensure continued
measurement and move on to
reporting internally.
3 key reporting considerations
1. Assurance — As sustainability reports spread,
the demand for assurance on them grows. “A
major issue with sustainability reporting is the lack
of credibility (both within companies and externally)
because the reported information hasn’t been
audited,” says Dorsey Baskin, Audit managing
partner. “We’ve seen this rob XBRL [eXtensible
Business Reporting Language] information of much
of its momentum and potential value, and I don’t
want to see it happen to sustainability reporting.”
In the United States, auditors have the AICPA’s
attestation standards available to guide examinations
and reviews of sustainability information and controls
over such.
2. Internal control — The spotlight on the integrity
of sustainability reports has been raised with the
adoption of Committee of Sponsoring Organizations
of the Treadway Commission (COSO) Framework
2013. Effective Dec. 15, 2014, the updated
framework emphasizes that its scope extends to
nonfinancial reporting generally, and sustainability
reporting specifically. Principle 8 lists the areas
organizations typically consider for fraud potential
and specifically mentions nonfinancial reporting,
including sustainability reporting.3
The raised profile
of nonfinancial reporting in COSO may spur CFOs to
take an enhanced interest in its quality and accuracy.
3. Integrated reporting — Integrated reporting
is a different approach to providing investors with
information. It involves reporting on the creation (or
destruction) of value, typically focused on certain
capitals — intellectual capital, human capital,
financial capital, etc. Currently, few middle-market
companies are doing integrated reporting. Whether
they adopt it will depend on the company’s culture,
tone and direction of senior management. It will also
be driven by the company’s branding and how public
it is (i.e., it’s more likely that an admired, publicly
traded company with a very well-known brand will
consider integrated reporting).
Step 1:
Identify an area that
you think your company
can make measureable
improvements in and set
a baseline measurement.
Step 2:
Identify specific ways you can
achieve your goal and then
design a plan to achieve it,
including deliverables, target
dates and ownership.
Step 4:
Once internal reporting is
perfected, set your eyes
on external reporting.
My manufacturing company
has never reported on its
sustainability efforts. What are
the first steps to get started?
Embracing sustainability at a deep level requires
not only strong execution, but also accurately
and effectively measuring performance and
communicating results to both internal and
external audiences. It may seem daunting at first,
but just like your company’s annual reports to
stakeholders, sustainability reporting keeps tabs
on your program’s health.
3
COSO – Committee of Sponsoring Organizations of the Treadway Commission Internal
Control Framework, Internal Control – Integrated Framework, p. 52

How thinking laterally can maximize the
benefits of green tax incentives and credits
The government finds itself in a rather unusual
position: It is trying to give away money but isn’t
getting any takers. Well, not no takers — but it
seems that relatively few companies are aware
of the significant local and federal incentives, tax
breaks, and cash grants that their sustainability
efforts could be buying them.
Tim Schram, Grant Thornton managing director
of the Credits and Incentives practice, says “If
companies work it right, businesses can actually
earn significant dollars through some of these
programs — it turns into real money.”
Step 1. It’s about thinking laterally
Partnering with governmental agencies can bring
about large savings and a huge net increase in
growth. For example, the New York State Energy
Research and Development Authority (NYSERDA),
which is a public benefit corporation, offers
objective information and analysis, innovative
programs, technical expertise, and funding to help
New Yorkers increase energy efficiency, save
money, use renewable energy, and reduce reliance
on fossil fuels.4
TAXES AND INCENTIVES
• Federal, state and local green tax incentives are overlooked by the
vast majority of companies
• Finding the right incentives involves lateral thinking — what kind of
incentive can grow your business over both the short term and the
long term?
• Specialized help will help you sort through the myriad options and
find the best fit for your goals
4
www.nyserda.ny.gov/About.aspx
1 in 3
Only 19%
Federal 13% Local 22%
companies weren’t even
aware that incentives are
available to them.
of food and beverage
companies have taken
advantage of local green
tax incentives.
A minuscule 8% of companies
have leveraged federal programs
like pollution credits.
Retailers were more likely to have benefited
from federal and local incentives.
19+81+D 8%
only
Read more about this on our website.

Case in point: Steven Winter Associates. In 2007,
this environmentally friendly building design,
construction and operation firm partnered with
NYSERDA as a Multifamily Performance Partner.
Since then, the firm has seen significant growth,
largely resulting from affordable housing building
owners enrolling in the program.
Another example can be found in New Jersey,
where, under the state’s SmartStart Buildings
program, qualified businesses can receive up to $4
million in cash grants to fund significant investments
in measurable energy efficiencies at existing
industrial locations.
But the benefits that can come to qualified companies
don’t stop with the funding. Once you’ve installed
the new equipment or adopted the new policies and
procedures, further growth opportunities may appear
that you didn’t initially foresee.
“We worked with one company, that engaged in a
sustainability program to reduce their waste,” says
Schram.” It turned out that the byproduct of this
method was methane gas, which the company was
then able to burn as fuel for their plant.” In this case,
not only did the company benefit in the anticipated
manner, but they were also able to — laterally —
further reduce their carbon footprint and save on
energy costs as well.
Step 2: Find the right fit
Companies looking for a good place to start might be
well served to look into one or more of the following
most widely used state and regional sustainability
credit and incentive programs, including:
• California Self-Generation Incentive
Program (SGIP): SGIP offers incentives in
the amount of $1/W to $4.50/W for renewable
energy systems. Projects receiving incentives
funded by a non-investor-owned utility ratepayer
receive an award discounted by a rate of 50% of
the other incentives.
• ReCharge New York power program:
This statewide economic development power
program for qualified businesses and not-for-profit
corporations is designed to retain and create jobs
through allocations of low-cost power. Participating
New York businesses can save up to 20% in
electricity costs.
• Tennessee Valley Authority: This government-
owned corporation and its distributors offer
a competitive utility savings opportunity for
businesses in their service territory that are
investing in a new or existing facility. The award
is based on an energy-efficiency commitment,
job creation and retention, capital investment
commitments, average wages paid, and the
business’s load factor.
• Georgia sales and use tax exemption:
The exemption applies to energy used directly or
indirectly in qualifying manufacturing plants and will
phase out over a four-year period. This exemption
does not include the generation of electricity.
Think creatively about how you might be eligible
for help. And remember that these offerings are
often holistic incentives. They are not largely
business-category specific, which is of benefit to
you, because you will have more areas of potential
funding to pursue.
Step 3: Research, research, research
Consider assigning a dedicated person (or team)
from your own company to manage the project,
from research to application to the resulting program
rollout. Here are a few ideas to guide your efforts:
• Brainstorm the areas where your business
falls short in sustainability, and document where
you have the most potential for growth. These
ideas can be very granular at this stage (and often
they often should be).
• Once you have the best ideas on the table, begin
cutting. When instituting a major shift like this,
it’s a good idea to limit your initial list of to-dos to
a manageable number of target areas. Areas of
focus should be: best fit for the company; best
incentive package to limit initial financial outlay;
best long-term ROI.
• Create a detailed action plan, with targeted
and measurable dates and deliverables. In other
words, treat this area of growth as you would any
other initiative in the physical space, rather than
seeing it as a maybe, or potential, or interesting
intellectual exercise.
Schram advises: “Don’t be afraid to be aggressive.
Challenge yourselves and your budgets to identify
where the funding will come from, in order to
increase ROI. The best sustainability strategies are
not just done for the public good — they also make
good sense, from a financial perspective.”
Want a comprehensive list of incentives?
Find state and federal sustainable building incentives at epa.gov and
dsireusa.org. Business.usa.gov also provides many useful federal
resources to encourage you to take advantage of lateral-thinking
programs that could be the right fit for your company.

RISK MANAGEMENT
• One of the greatest risks companies face is ignoring
sustainability as the way of doing business in the future
• Risk presents opportunities, especially for responsible companies;
for example, eliminating suppliers that don’t abide by conflict mineral
regulations will boost your company’s sustainability efforts
• Always think about risk in terms of the 3 P’s — people, planet,
profit — for a holistic view of your risk profile
How to incorporate sustainability-related
risk into an existing ERM framework
Risk is a loaded term. Businesses don’t want to be
exposed to it, and financial advisers want to steer
clear of it. But sometimes taking a risk can reap far
greater rewards than staying the course. In the case
of sustainability, failing to take action might actually
expose your business to increased reputational
risk, according to Bailey Jordan, a partner in Grant
Thornton’s Governance, Risk and Compliance
practice. The risk “is not a threat to green
companies, but rather to non-green companies.
Stakeholders may be vocal if they perceive a
company is not doing their part to be socially
responsible and respectful of people, cultures and
the natural environment,” Jordan says.
Embracing risk can be an opportunity to grow
your business, says Jose Molina, Grant Thornton
principal of the Financial Services practice.
He cites the Equator Principles (see sidebar on
p. 39) as “a model for designing services and
products that are in compliance with sustainability,
but also give the company an advantage over
businesses who are not following the principles.
This is a real way they can grow revenue while
embracing corporate sustainability.”
26+74+D Manufacturers are more likely
to describe themselves as
sustainability innovators,
leading with large-scale, deep-
reaching sustainable strategy.
1 in 4
food and beverage distributors are
not sure where their company falls
on the sustainability adoption curve
.
26%
consider their companies to
be mature on the sustainability
adoption curve, meaning that
they are already controlling
the risks and costs associated
with programming.

The 3 P’s
The triple bottom line is an accounting framework
that measures ecological, environmental and social
responsibility — intangibles that until recently have
been difficult for risk assessors to quantify. The
triple bottom line refers to the 3 P’s: people,
planet and profits. There are tangible things you
can do to measure how these factors can affect the
growth of your business.
Sustainability is more than just looking for ways to
cut your electricity bill or reduce packaging or fuel
costs. It’s about corporate social responsibility and
transparent economic performance. If your business
is thinking about adopting a sustainability strategy,
it is crucial that you consider these intangibles to
make sure you’re covered in all areas.
In fact, the biggest risk in embarking on a strategic
sustainability program is associated with the initial
financial outlay — the cost to redo existing HVAC, for
example — and the resulting effect on your business’s
working capital. For that reason, numerous grants
and incentives are available at the local, regional and
national level to help offset this risk.
A 6-point ERM plan for
sustainable companies
Most likely, your company already has a risk
management plan in place. Follow these steps
to integrate sustainability-related risks into your
current framework:
1. Align from the top. Without management’s
support and enthusiasm, it will be difficult for a deep-
reaching sustainable strategy to succeed. They need
to know what the risk mitigation strategy looks like,
how much risk they’re willing to assume and how
high the stakes can become.
2. Document existing ERM strategy. Take the
time to create a baseline. What is your focus? What
measurement tools and documentation are already in
place? If sustainability is a new area for your company,
you may need to consider realigning your tools to
make sure you are covered (see Figure 2).
3. Get your key stakeholders on board. From
suppliers to distributors, complete agreement is vital
to the success of your ERM plan. Let people weigh
in on the risk you are about to assume. Don’t forget
stakeholders who may not be directly linked to your
business — such as local community leaders, green
activist groups and educators — as these people
could have an impact on your progress.
4. Be responsible. Seeing things through the lens
of corporate social responsibility will help you align
your plan with decision-makers who will support your
cause and reduce your risk. Remember that social
responsibility is a strategy, not a tactic. Keeping this
approach top of mind will be key in the future.
5. Measure your progress. Create a baseline
at the beginning of your journey and keep track of
your progress. What does your current risk look
like? How is your ERM framed? Include the triple
bottom line and the 3 P’s (see sidebar). How is this
undertaking affecting people, the planet and your
profit? Determine your goals and assign steps to
make them happen.
6. Commit to the process. Sustainability is
becoming an industry priority, and companies that
don’t get on board will find themselves out in the
cold. Dedicate a team whose job it is to make a
plan, analyze risk, conceptualize reward and move
the process along. Sustainability will not become an
integral part of your business unless you make it one.
Figure 2: Find the best match
Which assessment tool is the right ERM match for your business?
COSO: Enterprise risk management —
Integrated framework
ISO 31000: Risk management —
Principles and guidelines
Issued in
2004 by the COSO. Although COSO has been widely
used in its original 2004 form, it recently released an
online survey designed to capture views and insights
regarding the current framework and to collect
suggestions for improvements.
2009 by the International Organization
for Standardization (ISO)
Emphasis
Provides a flexible evaluation standard against which
you can evaluate your current ERM process. While ISO
31000 defines itself as a set of principles a business
can use to create its own ERM, COSO is more focused
on performance-based risk management.
Concentrates on integration, implementation and change
themes. ISO 31000 puts a greater emphasis on risk
management principles, allowing an organization to
develop its own risk management plan, while COSO is
more focused on performance-based risk management.
Strategic
differentiator
Focuses on performance-based
risk management
Focuses on risk management as a strategic discipline
for making risk-adjusted decisions
Intended use Offers compliance-based functionality
Provides guidance on the nature of the risk
management process and how to implement it.
Taking all of these factors into consideration, one
thing is clear: We can no longer predict the future
by analyzing the past, so having a team to measure
and assess ongoing risk will be key to your
strategic success.

PERFORMANCE
IMPROVEMENT
• If you want to ensure continued support and success of the sustainability
program, consider embedding it into the business performance
improvement framework
• The supply chain is a major opportunity to enhance the performance of
your sustainability strategy; create baselines and hold your suppliers
accountable to meet your standards
• Check the health of your IT infrastructure — the quality of the data
you collect as well as your company’s reputation hinge on your
technology platforms
Lean, green, profitable
When the right metrics are used, embedding the
sustainability program into existing performance
improvement processes can boost its success and,
ultimately, the ROI. Let’s take a look at how this
integration can play out.
Total overhaul or incremental change?
When weighing in on performance management
programs, is it better to start fresh or adapt
the current model? Rob Tague, director of
Grant Thornton’s Corporate Advisory and
Restructuring Services group, thinks that in
order for any transformational effort to be
considered successful, a few things must happen:
• Processes must achieve planned results.
• Technology must work effectively and efficiently.
• Client expectations must be met or exceeded.
• People must understand and adopt the ideas that
are being implemented.
Therefore, in order to evaluate what needs to
change in existing performance management
systems or what needs to be created in new ones,
you need to figure out your unique situation.
Start by asking yourself what your opportunities are,
and how you are currently performing in these areas:
• Financial and operational performance metrics
• Existing processes
• Current organizational structure
• IT architecture diagrams and performance metrics
Then ask: How do we achieve the results we want to
achieve? Do we have the basic pieces in place, or do
we need to start again? To discover this, examine a
detailed design of all the necessary implementation
components, including:
• Processes
• Enabling technologies
• Organization
• Metrics
• Dashboards

Once you’ve got this all figured out, says Tague, you
can develop an implementation strategy, revise your
ROI analysis, and summarize and present solutions
and final analysis to stakeholders for review. And
then, he says, you’re ready to implement. Can you
proceed with your current tool, or do you need
to start again? Every situation is different, but by
completing the process we outlined, you’ll know
which answer is right for you.
Profitability improvement
There are two primary ways that sustainability
initiatives drive improved profitability:
Enhanced efficiencies: Analyze activities that
you’re performing in your business, and identify the
relative cost and environmental intensity of each.
The goal is to move away from those that are high
cost and/or have a high environmental impact,
and toward those that are low cost and/or with a
low environmental impact. This is an enhancement
of traditional management tools, such as activity-
based costing/management (ABC/M) systems,
which analyze the cost of a company’s activities by
adding a data layer for environmental footprint. An
environmental sustainability ABC/M model evaluates
the cost and environmental footprint as separate
criteria and allows for a cross-analysis of the cost
per environmental emission for particular activities.
It’s important to understand what these costs may
be and how to layer them into your company’s
decision-making process. Then you can get to work.
Compliance: Regulation can take the form of fines
for noncompliance or increased cost associated
with new technology, such as upgrades needed
to reduce emissions. Says Mark Lemon, manager
in Grant Thornton’s Global Public Sector practice:
“Companies that understand their environmental
footprint — and analyze and evaluate the processes,
activities and products that contribute to it — are
better equipped to respond to regulations, placing
them ahead of competitors who don’t or can’t
evaluate their environmental impact.”
Supply chain visibility
“Cost, schedule and quality have traditionally been
the most important metrics to track the success
and failure of supplier relationships. Sustainability
has entered the picture in recent years as the fourth
critical factor,” says Robert Schwartz, principal
in the Business Advisory Services practice at
Grant Thornton. Create a performance baseline
for your suppliers right away, as soon as you form
a relationship or initiate sustainability efforts. It’s
surprising, he says, how few businesses take this first
vital step. “If companies have good information —
and most companies don’t — they can quickly learn
how vendors and suppliers are performing versus
expectations and requirements, and attack
the issues.”
IT management
Once you’ve invested in advanced management
tools, it is vital that you have an IT infrastructure that
can keep up with the demands placed upon it — to
collect, manage and protect your valuable data.
ABC/M, for example, is a data-intensive management
tool. There’s no doubt that it could chew through
your existing resources in no time. But it’s necessary
to use what you’ve got and to increase the size of
your infrastructure, says Lemon, because “granular
data related to resources, activities, products and
services is critical to identifying the relative intensity
of those resources, activities and products.”
And it’s not just about data evaluation, notes Bailey
Jordan, partner in Grant Thornton’s Governance, Risk
and Compliance practice. If your IT infrastructure
is inadequate, it could be easy to walk into
communication black holes, which are a real
reputation risk for your business. Within the whirlwind
of social media, he notes, “ignoring or being slow
to respond to questions about social responsibility
could impact company or brand reputation with the
result being lost sales and shareholder value.”
“Cost, schedule and quality have traditionally been the most important metrics to track
the success and failure of supplier relationship. Sustainability has entered the picture in
recent years as the fourth critical factor.”
—Robert Schwartz, National Performance Improvement Leader, Grant Thornton
REAL-WORLD CHALLENGE
Our distribution company wants to
reduce its impact on the environment.
What are the most cost-effective tactics
to consider?
Because distribution is an incredibly low-margin
industry, it’s vital to minimize the initial outlay
costs to the business. Reducing operating costs
through efficiencies is the easiest way to both
grow your business and adopt a sustainable
business practice. As equipment becomes
obsolete, replace it with the most eco-friendly
options. Not only are there substantial tax breaks
for doing so (see p. 34 for some ideas), but there
are often cash-in-hand rebates on offer as well.
Upgrading your fleet to hybrid will reduce your
transportation and fuel costs, and will also be
a selling point for your company. Even small
changes like installing electric car charging ports
can have a big impact — the important thing is to
get started.

Mike Capone
Partner, Audit Services,
Practice Leader,
Distribution
Sustainability Q&A
Distribution Practice Leader Mike Capone on what the future
holds for distributors in a sustainable society
Currently, distributors
don’t seem to think
that sustainability is an
important issue when it
comes to growth. Why do
you think this might be
short-sighted?
Click on each question
to reveal the answer
So, how can we explain to
distributors that they can
leverage their investment in a
sustainable business strategy?
What trend do you think will
radically shape the distribution
industry in the next 10 years?

HIRING AND
RETAINING TALENT
• A company’s values and dedication to responsible business are top
of mind for employees and new talent
• Is your company communicating its sustainability vision clearly to
employees and potential hires? If not, you’re missing out on a big
opportunity to motivate your people
• A tangible commitment to social and environmental values — not
profits at any cost — is key to a thriving corporate culture
Why a commitment to sustainability
can attract and retain the best talent
As employers begin to loosen their belts and look
to add bench strength to their companies, they are
seeking out the best of the best. Potential hires, too,
are being selective in choosing their next employer,
and some of the criteria that they are basing their
choices on may seem surprising.
It is often CSR and its larger umbrella —
sustainability — that seems to motivate the best
talent these days. A 2014 study conducted by the
nonprofit group Net Impact showed that business
school graduates would take a 15% pay cut to:
• Work for an organization whose values are like
my own (88%)
• Have a job that seeks to make a social or
environmental difference in the world (83%)
• Have a job in a company committed to corporate
and environmental responsibility (71%)
The view from both sides of the fence
These findings are not surprising to Winnie
Steffenson-Klick, director in Grant Thornton’s
Compensation and Benefits Consulting practice.
“Corporate values are a key factor in a company’s
ability to attract and retain a productive workforce,”
she says. “Research shows that employees who are
most highly skilled and sought after are those who
care the most about corporate social responsibility.”
Similarly, she notes, companies that care the most
about their communities and the environment also
tend to demonstrate a strong commitment to the
health and well-being of their employees. “These
values go hand in hand,” Steffenson says. “Employee
engagement is a huge driver of productivity.
Companies that implement sustainable business
practices often see employee commitment rise. The
reason for this is that employees feel a strong link to
the values of their company.”
“Employee engagement is a huge driver of productivity. Companies that implement
sustainable business practices often see employee commitment rise. The reason for this
is that employees feel a strong link to the values of their company.”
Steffenson-Klick’s, Director, Compensation and Benefits Consulting Practice

This commitment has a domino effect: Not only can
a company with a solid CSR strategy attract the best
talent, but it also retains the best people — those
who appreciate the company’s culture and want
to continue to be a part of it. “This is continually
demonstrated in the 100 best places to work
list,” says Steffenson. “Over and over, we see that
companies who are employers of choice are those
with sustainable practices in place. Again, companies
that care about the environment are also those
who demonstrate a strong community focus and a
commitment to the well-being of their employees.”
It is important to note, however, that companies who
are winning in this space are those with a genuine,
demonstrated commitment to CSR. Businesses who
merely pay lip service to the strategy will quickly
find themselves exposed. “The culture of a company
is highly visible to the public,” says Steffenson.
“It directly correlates to its business image and
the ability to attract and retain great employees.
If employees experience a disconnect between
what is being communicated and what is actually
being done, they are more likely to leave.” This can
damage your business, both in terms of reputation
and talent base.
Infusing your culture with
sustainability-related values
So, with this in mind, how can your company begin
to adopt sustainable business practices and create
a culture of sustainability? This process should start
at the top. “Sustainability has to be an integral part
of your business culture,” says Steffenson. “It has
to start with a strong commitment from the senior
leadership team, and it has to be owned by everyone
in the organization.”
If your company is ready to commit to sustainable
business practices, you may start by creating a
set of principles that will guide your business. The
International Institute for Sustainable Development
provides a checklist for employers that starts
with creating a mission statement, followed by
establishing metrics for measuring and reporting.
“You don’t have to start with big changes; it’s better
to set goals that are achievable,” Steffenson says.
Once the CSR plan is in place and has strong
leadership commitment, ask your team how
these changes can be implemented. Creating internal
champions is key here. “We’ve seen great success
with a company that assembled a sustainability team
who really helped get the initiative going throughout
the organization,” notes Steffenson. And, as with any
major change initiative, it is important to communicate
— make sure employees know what is changing
and how these changes support the CSR plan. As
sustainable practices take hold, employees will
start coming forward with suggestions for additional
changes. This should be encouraged and rewarded.
Making sustainability a priority can enhance your
work environment and improve the bottom line — it
is no longer a nice-to-have business strategy; it is
an integral component to managing your business,
and can be a valuable differentiator in attracting and
retaining a talented workforce.

Dorsey Baskin
Managing Partner
Assurance Services Development
T +1 214 561 2328
E dorsey.baskin@us.gt.com
Bailey Jordan
Partner
Governance, Risk and
Compliance Practice
T +1 919 881 2790
E bailey.jordan@us.gt.com
Dexter Manning
Practice Leader
Food and Beverage
T +1 404 475 0061
E dexter.manning@us.gt.com
Robert Schwartz
National Leader
Performance Improvement
T +1 832 476 3670
E robert.schwartz@us.gt.com
Mike Capone
Partner, Audit Services,
Practice Leader, Distribution
T +1 312 602 8020
E michael.capone@us.gt.com
Brian Larsh
Director
Business Advisory Services
T +1 414 277 1588
E brian.larsh@us.gt.com
Jose Molina
Principal
Financial Services
T +1 312 602 8330
E jose.molina@us.gt.com
Tim Schram
Managing Director
Credits and Incentives
T +1 312 602 9022
E tim.schram@us.gt.com
Jeff French
Practice Leader
Manufacturing
T +1 920 968 6710
E jeff.french@us.gt.com
Mark Lemon
Manager
Global Public Sector
T +1 703 637 2949
E mark.lemon@us.gt.com
Tony Perazzo
Partner
Audit Services
T +1 415 365 5446
E tony.perazzo@us.gt.com
Winnie Steffenson-Klick
Director
Compensation and Benefits Consulting
T +1 612 677 5477
E winnieklick.steffenson@us.gt.com
Rob Tague
Director
Corporate Advisory and
Restructuring Services
T +1 312 602 9083
E rob.tague@us.gt.com
Subject matter consultants
WANT TO LEARN MORE?
We hope this hands-on guide to sustainability as a business strategy
helped you identify a new area of growth for your company.
Find more ideas at grantthornton.com/sustainability or connect
with our team of professionals who contributed to this publication.

About Grant Thornton LLP
Grant Thornton is one of the world’s leading organizations of independent audit, tax and advisory firms. These firms help dynamic organizations
unlock their potential for growth by providing meaningful, forward-looking advice. Proactive teams, led by approachable partners in these firms,
use insights, experience and instinct to understand complex issues faced by privately owned, publicly listed and public sector clients and help
them to find solutions. Over 35,000 Grant Thornton people in more than 100 countries are focused on making a difference to clients, colleagues
and the communities in which we live and work.
“Grant Thornton” refers to Grant Thornton LLP, the U.S. member firm of Grant Thornton International Ltd (GTIL), and/or refers to the brand under which the GTIL member firms provide audit, tax and advisory
services to their clients, as the context requires. GTIL and each of its member firms are separate legal entities and are not a worldwide partnership. GTIL does not provide services to clients. Services are delivered
by the member firms in their respective countries. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another’s acts or omissions. In the United States, visit
grantthornton.com for details.
© 2015 Grant Thornton LLP | All rights reserved | U.S. member firm of Grant Thornton International Ltd
Connect with us
grantthornton.com
@grantthorntonus
linkd.in/grantthorntonus

The only guide your company needs to get started on sustainability

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Andere mochten auch

Andere mochten auch (14)

Mehr von Grant Thornton LLP

Mehr von Grant Thornton LLP (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

The only guide your company needs to get started on sustainability