Corporate Sustainability

Organization Structures, Budgets and Mastering the Art of Influence

Sample

March 8, 2011

Lead Analyst
David Schatsky

Copyright © 2011 Green Research 1

Table of Contents
Executive Summary ....................................................................................... 3
Key Findings .................................................................................................. 3
An Elite Group on a Journey ............................................................................ 4
Study Participants Represent a Broad Range of Industries ................................ 4
The Corporate Sustainability Function: Leadership and Leverage.......................... 5
Small Teams Seek Outsized Impact ............................................................... 5
Sustainability often Reports to a Communications Group .................................. 7
Executives Seek to Leverage Small Budgets with Big Influence ............................ 8
Consulting, Communications and Memberships Are Major Spending Categories ... 9
Budgets Have Held Firm Through the Recession ............................................ 10
Behind the Mission ....................................................................................... 10
Tools for Formulating Purpose ..................................................................... 11
Knowledge Sharing with Key Organizations ..................................................... 14
Peer Relationships Are Vital ........................................................................ 14
Non-Governmental Organizations as Brain Trusts .......................................... 14
Universities Provide Expertise at Modest Cost ............................................... 15
Trends in Sustainability Reporting .................................................................. 15
Growth Rate of GRI Reporting, Moderating Globally, Is Still Strong in North
America ................................................................................................... 16
Seeking Alternatives to Standardized Reporting ............................................ 17
GRI Reporting for Public Companies in the Sustainability Mainstream .............. 17
Outlook....................................................................................................... 18
Outside Impacts and Influence Will Be Key for Meeting Sustainability Goals ...... 18
Lifecycle Assessment Increasing in Importance ............................................. 19
Mandate ..................................................................................................... 20
Maximize Your Budget Influence ................................................................. 20
Report Appropriately.................................................................................. 20
Embrace an Authentic Purpose .................................................................... 21
Companies Interviewed for this Report ........................................................... 21

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Table of Figures

Figure 1Revenue Breakdown of Study Participants ............................................. 5

Figure 2 Henkel’s Sustainability Governance Structure ........................................ 6
Figure 3 BASF’s Sustainability Governance Structure .......................................... 7
Figure 4 Location of Sustainability Function ....................................................... 8
Figure 5 Influence of Sustainability Department on Other Departmental Budgets ... 9
Figure 6 Top Items in Sustainability Department Budgets ................................. 10
Figure 7 Number of Companies Submitting GRI-Compliant Reports to GRI .......... 17
Figure 8 Year-over-Year Change in Number of Companies Submitting GRI-
Compliant Reports........................................................................................ 17
Figure 9 Reporting Maturity Framework .......................................................... 19

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Executive Summary
Corporate sustainability executives face substantial challenges. They need to stay
abreast of the rapidly evolving discipline of sustainability; they need to work across
their organizations to foster dramatic changes in how they conduct business; and
they need to communicate effectively inside and outside the company to
understand and influence diverse stakeholders.

Green Research set out to understand the work of senior sustainability executives
with the goal of aggregating, analyzing and sharing information of value to this
group as well as identifying avenues for future research. We interviewed more than
30 senior sustainability executives at major companies in North America and
Europe. We investigated the structure of the sustainability function in their
companies; the budget for developing and executing sustainability strategy; the
central purpose of their sustainability strategy; and their attitudes and practices
around sustainability reporting.

This study reveals remarkable diversity but also some telling patterns among the
companies and executives interviewed. One of the most important sources of
learning for nearly all the executive interviewed for this study is interactions with
their peers. This study helps sustainability executives identify areas for focus and
discussion in peer encounters. And it provides useful perspective to vendors and
agencies that develop and offer services aimed at senior sustainability executives.

Companies Interviewed for this Report

We extend our thanks to the following companies, and others which requested
anonymity, for participating in this research.

ACCO Brands Levi Strauss & Co.

Akamai Mars
Annie's Patagonia
Applied Materials PepsiCo International
Aspen Skiing Company REI
BASF Sabre Holdings
Bloomberg Sodexo
Campbell Soup Company Sprint Nextel
Darden Restaurants Standard Chartered
EMC Starbucks
Enterprise Holdings The Home Depot
FedEx Unilever
Green Mountain Coffee Roasters Verizon
Henkel Xerox
InterfaceFLOR

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Green Research is a research, advisory and consulting firm focusing on
cleantech, alternative energy and sustainability. We provide market
intelligence and strategic advice to technology startups, enterprises and
investors in the cleantech sector and beyond. To deliver successful
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+1 917-385-0600.

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