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ITIL® 4:
Sustainability
in Digital and
ITIL® is a registered trade mark of AXELOS Limited, used under permission of AXELOS Limited. All
rights reserved.
IT Infrastructure Library® is a (registered) Trade Mark of AXELOS Limited.
Quoted text is from the ITIL® 4: Sustainability in Digital and IT Syllabus. Copyright © AXELOS Limited
2021. All rights reserved. Reproduced under license from AXELOS Limited.

IT
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Course Syllabus
 Unit 1: Understand the Key Concepts of
Sustainability
 Unit 2: Understand the Value, Benefits, Costs, and
Risks of Sustainability
 Unit 3: Understand How Digital and Information
Technology Support Sustainability
 Unit 4: Know How to Plan Sustainability for an
Organisation
 Unit 5: Understand How Organisational
Sustainability is Assessed, Maintained, and
Improved

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Unit 1: Understand the Key Concepts of


Sustainability

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Learning Outcomes of Unit 1
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 Module 1: Describe the Benefits of Sustainability for an Organisation

 Module 2: Describe the Key Concepts of Sustainability

 Module 3: Explain the Purpose of the UN Sustainable Development Goals


and their role in an Organisation’s Sustainability
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 Module 4: Explain the Purpose of the UN Global Compact Principles and


their role in Organisations’ Sustainability
 Module 5: Describe the Triple Bottom Line Model and the Scope of Each of
the Three Pillars
 Module 6: Describe the Concept of Externalities

 Module 7: Describe the Key Challenges of Sustainability

 Module 8: Describe the Key Sustainability Solutions


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Module 1: Describe the Benefits of


Sustainability for an Organisation

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Benefits of Sustainability
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 The following are the strong evidence of the positive effect of sustainability
on an organisation’s performance:

Enhanced Business
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Potential for New


Reduced Cost Growing Revenue Continuity, Agility Improved Reputation Extra Funding
Partnership
and Resilience
• An enhanced model • Usually, consumers • Using sustainability • Sustainable • Business growth is • National and local
of business and the prefer responsibly criteria, other organisations are enhanced by governments allow
optimised use of produced, sourced organisations in the better equipped for cooperating with incentives to
resources usually and delivered economy select unanticipated such partners that sustainable
leads to lessened services and suppliers and changes in resource are reliable and businesses
costs products partners legislation, making sure that an
availability, and organisation’s
other conditions reputation is
enhanced by
sustainable
workforce
management

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Benefits of Sustainability
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The different ways organisations can benefit from sustainability initiatives are
given below:

1. Profitability and Growth


 The financial benefits of sustainability initiatives can be both direct and
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indirect in a for-profit organisation. Setting expectations is significant as not


all planned benefits will be confirmed or immediate. Showing positive
financial effects of a planned initiative can be a powerful approach to
persuade stakeholders and secure supporters and sponsors

2. Efficiency and Productivity


 Efficiency and productivity can be related to profitability directly; however,
not certainly limited to financial considerations. The results from the
sustainability initiatives might free up extra resources providing the
organisation with a much-required competitive edge

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Benefits of Sustainability
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3. Visibility
 Visibility is the point of struggle for some organisations. For instance, due to
low visibility, complex production and operational workflows with many
interlinked processes and many partners are especially difficult to optimise
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 An enhanced focus on sustainability can justify the organisation that is


conducting a holistic review of the entire value network, with the
sustainability aspects of each analysed connection and link.

4. Compliance
 In case the organisation operates in a space that is regulated, it could be
subject to regulatory requirements related to sustainability either
progressively or immediately, as set out in appropriate government
legislation

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Benefits of Sustainability
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(Continued)
 Third-party components might also be covered by Sustainability
requirements; that’s the reason organisations need to work with their
partners closely and either help their partners start creating one or align
their existing sustainability initiatives
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5. Brand Perception
 An increasing number of customers are interested in the direct benefits of
the services and products consumed and how these are provided.
Organisations with a sustainability’s publicised vision, together with
appropriate and strong commitments, might attain a competitive advantage
over the ones who are not invested in enhancing the sustainability of their
business

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Benefits of Sustainability
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6. Recruitment and Investments


 A sustainable, committed organisation could be regarded as a desirable
employer associated with brand perception. If prospective candidates
compare job offers, those organisations may be preferred that values
sustainability. The same applies to likely investors, especially in the start-up
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sector. New funding can be attracted by positive differentiation

7. Data and Insight


 In identifying and creating collaboration models with stakeholders of the
organisation, new avenues for data capture and market engagement could
be found. It helps the organisation to locate changes on the market prior to
others and prepare consequently

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Benefits of Sustainability
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8. Innovation
 Innovation can be fostered by the organisation by being experimental while
looking for business and work practices that are new, more sustainable
 If considered desirable, it is crucial to leave room for ‘failed’ experiments;
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which do not deliver anticipated outcomes but provide more information


about what work or what does not work

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Module 2: Describe the Key Concepts of


Sustainability

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Sustainability
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 Sustainability is defined as:

A business approach focused on creating long-term value for society and other
stakeholders, by addressing the risks and opportunities associated with
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economic, environmental, and social developments

 Usually, sustainability is recognised as a long-term goal, which implies a


target state of the world, a country or an organisation. The initiatives,
processes, and pathways to accomplish sustainability globally are
collectively known as sustainable development
 Sustainable development is primarily used in global goals, initiatives, and
processes, mainly focused at the organisational level. Unless stated
otherwise, the term sustainability is utilised in an organisational context and
its ecosystem
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Sustainability
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(Continued)
 The race to stimulate economic growth has resulted in numerous
inequalities in the global ecosystem and societies. A UN (United Nations)
report stated that sustainability had become part of forward-thinking CEOs
(Chief Executive Officers)
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 According to a UN report, an interview was conducted in 2010, and 93% of


CEOs believed that sustainability was crucial to their future success, the
percentage now rising up to almost 100%
 It is stated by several companies that they were developing and evaluating
sustainability strategies at various business levels. 76% of employees in the
survey said that CEOs should take the lead change instead of waiting for
governments to impose it

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Sustainability
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(Continued)

UN Compact Report findings: levels at which corporate responsibility


policies and strategies are developed and/or evaluated
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Sustainability
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Think Globally, Act Locally


• The organisations’ capability to successfully operate long term has been
correlated with their efficient business and operating models

• Even when the planned lifespan is relatively short, stakeholders anticipate


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that the organisation will be efficient throughout that period and allow value
in the face of changing internal and external forces

• In the 21st century, it became widely accepted that, in the interconnected


world, the whole planet should be treated as a holistic system where we all
live and operate. Due to humankind’s development, the system is now
fragile and tipping point

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Sustainability
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(Continued)

• No level in this cascade can attain sustainability in isolation. Sustainable


development should always be considered by organisations in the context of
broader ecosystems and with regarding each of the following levels:
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Macro

Micro

Internal
Organisational

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Sustainability Models, Issues, and
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Action: Conducting a Materiality Assessment


Concepts
 In order to conduct a materiality assessment, determine the focus areas for
the sustainability journey and describe a sustainability vision
 The organisation need to be aware of existing sustainability concepts and
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topics
 There are many fast-moving and arising sustainability issues, and humanity
faces new challenges every year and produce new opportunities
 However, existing topics keep on gathering momentum and become the
focus of business attention

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Sustainability Models, Issues, and
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 The models outlined the impact of an organisation’s activities on several


areas: Concepts
Impact of an Organisation’s Activities
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Supply End-of-use
Chain (Downstream)
(Upstream)

Operations
(In-house)

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Module 3: Purpose of the UN Sustainable


Development Goals and their Role in an
Organisation’s Sustainability

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The 17 UN Sustainable
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 Various high-level strategies and particular programmes for sustainable


Development Goals
development have been designed by the global expert teams and the
international organisation's support
 These are aimed at guiding the creation of national strategies, reducing the
risk of misalignment as well as possible conflict between individual
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initiatives, and enhancing the speed of attainment and the quality of agreed
sustainability objectives
 One of the famous global initiatives of this type, the 2030 Agenda for
Sustainable Development, five was agreed upon in 2015, and 193 countries
adopted it
 It defines 17 interconnected SDGs, shaped by the ‘5Ps’ (people, prosperity,
peace, planet, and partnerships) and is split into 169 distinct targets

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The 17 UN Sustainable
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(Continued)
Development Goals
 By tackling the biggest and urgent global challenges humanity faces, the 17
UN SDGs provide the blueprint for a sustainable future
 These objectives must be cascaded down to every level of society to make
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sure a tailored and constant focus for the sustainability initiatives


 Businesses, governments, communities, as well as individuals can work
together towards the SDGs, all within their scope of influence and in
accordance with their vision for the future
 At each level, ‘sustainable’ applies to the environmental, economic, and
social components united by common values and principles and subject to
effective governance

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The 17 UN Sustainable
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(Continued)
Development Goals
• The 17 UN SDGs
Goal Description
1 No Poverty End poverty in its every form
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2 Zero Hunger End hunger, attain food security and enhanced nutrition, and promote sustainable
agriculture
3 Good Health and Well- Provide healthy lives and promote well-being for everyone at all ages
being
4 Quality Education Promote lifelong learning opportunities for everyone and ensure inclusive as well as
equitable quality education
5 Gender Equality Attain gender equality and empower every woman and girl
6 Clean Water and Ensure the sustainability and availability management of sanitation and water for
Sanitation everyone
7 Affordable and Clean Ensure access to reliable, affordable, sustainable, as well as modern energy for
Energy everyone

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The 17 UN Sustainable
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(Continued)
Development Goals
Goal Description
8 Decent Work and Promote inclusive, sustained, as well as sustainable economic growth, productive and
Economic Growth full employment, and decent work for everyone
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9 Industry, Innovation, and Promote inclusive and sustainable industrialisation, build resilient infrastructure, as well
Infrastructure as foster innovation
10 Reduced Inequalities Lessen inequality within and among countries
11 Sustainable Cities and Make cities as well as human settlements safe, inclusive, resilient, and sustainable
Communities
12 Responsible Consumption Ensure sustainable production and consumption patterns
and Production
13 Climate Action To combat climate change and its impacts, take urgent action
14 Life Below Water Conserve as well as sustainably utilise the seas, oceans, and marine resources for
sustainable development

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The 17 UN Sustainable
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(Continued)
Development Goals
Goal Description

15 Life on Land Restore, protect, as well as promote sustainable usage of terrestrial


ecosystems, combat desertification, sustainably manage forests, reverse and
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halt land degradation, and halt biodiversity loss

16 Peace, Justice, and For sustainable development, promote inclusive and peaceful societies, give
Strong Institutions access to justice for everyone, and build accountable, effective, and inclusive
institutions at each level

17 Partnerships for the Reinforce the means of implementation as well as revive the global partnership
Goals for sustainable development

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Role of the UN SDGs for
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 The UN’s SDGs should be regarded while describing a sustainability vision:


Sustainability Vision
selecting the most appropriate goals and working towards them
 It will be a crucial input to the further materiality assessment exercises and
make sure that the sustainability actions and plans of the organisation align
with the macro-level necessities and priorities
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 The UN SDGs (sustainable development goals) has become a crucial


foundation for sustainability planning at the national, corporate and
personal levels
 These goals must be cascaded down to the personal, organisational,
Industrial and national levels to make sure a tailored and constant focus for
the sustainability initiatives at every level

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Role of the UN SDGs for
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(Continued)
Sustainability Vision
 But, various organisations, countries, and individuals have various
constraints, priorities and resources, which must be reflected in strategies of
their sustainability
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 Many countries have already explicitly connected or are planning to link


their national budgets to the SDGs and align these with their existing
strategies of national sustainability

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Role of the UN SDGs for
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The 17 UN Sustainable Development Goals


Sustainability Vision
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Role of the UN SDGs for
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Action: Describing a sustainability vision on the basis of the UN SDGs


Sustainability Vision
 Comprehend the SDGs and their targets

 Select and agree with the key stakeholders the high-priority SDGs on the
basis of the organisation’s business vision, purpose, and strategy
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 Assess current and possible contributions made by an organisation to


accomplish the chosen SDGs
 Use the priority SDGs as the reasoning when articulating your sustainability
vision
 Align the organisation’s objectives along with vision statement with the
SDGs
 Hold on to the prioritised SDGs and the sustainability vision during the
sustainability journey
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Role of the UN SDGs for
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 When the most suitable goals are selected, there are still questions about
Sustainability Vision
how to work towards them, particularly in case of confusion and uncertainty
 The best practice is to agree, follow, and adopt a set of significant guiding
principles used as an alignment tool or a ‘compass’ for those included in the
sustainability journey
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 An organisation must explore possibilities in order to better serve its


stakeholders better, have an optimistic effect on the community where it
operates, expand its customer base, improve efficiency, increase revenue
and optimise costs

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Module 4: Explain the Purpose of the UN


Global Compact Principles and their Role in
Organisations’ Sustainability

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Ten Principles of the UN Global
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The UN Global Compact


Compact
 It is a non-binding UN pact to motivate firms and businesses worldwide to
adopt sustainable and socially accountable policies and report on their
implementation
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 The vision for the UN Global Compact is to support companies to:

 Do business responsibly by aligning their operations and strategies with


the ten principles on labour, human rights, environment, and anti-
corruption
 Take strategic actions in order to advance wider societal goals, as the UN
SDGs with an emphasis on innovation and collaboration

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Ten Principles of the UN Global
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ITIL Guiding Principle: Start where you are


Compact
 Do not begin from scratch and build something new without considering
what is already available to be leveraged
 There is a possibility of a great deal in the current services, programmes,
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processes, people and projects, which can be used to create the expected
outcome
 It is not required to begin from scratch while choosing which sustainability
principles to follow
 There are combined global efforts available in order to assist those
organisations that are looking for high-level guidance to drive their
sustainability initiatives and set and accomplish their sustainability
objectives

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Ten Principles of the UN Global
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(Continued)
Compact
 One result of these initiatives is the UN Global Compact’s ten principles

 The ten principles of the Global Compact provide organisations with a


universal language for corporate accountability understood in 160 countries
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over the world


 In addition, the principles provide a framework guiding businesses of any
size, location and complexity
 The principles provide organisations with a baseline for standards they must
comply with to achieve corporate sustainability at a fundamental level

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Module 5: Describe the Triple Bottom Line


Model and the Scope of Three Pillars

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The Triple Bottom Line
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 Several organisations are moving from concentrating on profitability to the


triple bottom line (TBL)
 This approach covers the environmental, financial and social aspects

 The following are the three sustainability pillars that are integrated by the
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TBL

Social Progress

Environmental
Stewardship

Economic Growth

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The Triple Bottom Line
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The Triple Bottom Line Model


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Module 6: Describe the Concept of


Externalities

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Impact of Sustainability Initiatives
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 It is important to consider that how the parts of the organisation's


ecosystem and stakeholders are impacted by the sustainability initiatives
 When third parties are affected by the organisation's decisions, these
circumstances are known as externalities
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What is an Externality?

An externality is a benefit or cost that an organisation creates for others that a contractual
relationship may not address. An externality can arise from either the consumption or
production of goods or services, and it can be positive or negative. The benefits and costs can
be social or private; this implies that they can affect society as a whole. When the third party
is affected by the consumption or production of particular goods or services that are not
directly associated with their consumption, externalities occur

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Impact of Sustainability Initiatives
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(Continued)
 Instances of externalities involve:

 Environmental: Air pollution, degradation of land and habitat's


rehabilitation, GHG emissions, reforestation or deforestation, biodiversity
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gain or loss
 Social: Job loss, generation of new jobs, increase or decrease of wages,
effect on urbanisation trends, impact on human health, social conflicts,
contribution to education, and skills
 Economic: Effect on land and property prices, contribution to economic
development, new trade opportunities, commercialisation, and
technological innovation's acceleration

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Module 7: Describe the Key Challenges of


Sustainability

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Growing Human Population
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 A significant issue of sustainability is that the limited resources of our planet


are consumed faster than they restore
 The rapid growth of the human population is one of the contributing factors.
Along with the increased consumption of carbon per capita, the number of
people is also growing rapidly
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Key Message

The natural world pays the price as the earth cannot provide for us all. Our vast and
ever-increasing number has worsened pollution, climate change, biodiversity loss,
water, deforestation, and food shortage. Our numbers and consumption is a product of
our impact on the environment. We should address both

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Growing Human Population
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(Continued)
 Organisations and companies can reply to this challenge with responsible
and optimised consumption, shifting to renewable energy sources, adopting
a circular economy, using more efficient techniques of waste management
and other solutions
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 Digital technology is usually a part of these solutions

 It can provide more sustainable modes of doing business or allow more


informed decisions

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Waste Management
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 The limited raw material is the main issue of the traditional economy as it
will ultimately run out while waste accumulates
 This waste incurs expenses associated with pollution or disposal, so it is
necessary to optimise resource consumption and waste management
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 Volumes and varieties of waste have been increased due to urbanisation,


industrialisation and economic growth
 Inefficient and ineffective waste management leads to toxic emissions and
greenhouse gases, as well as the loss of valuable resources and materials
 Moreover, it adversely affects human health and increases land, air, and
water pollution

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Waste Management
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E-Waste Management
 The usage of non-renewable resources in production, generation of
electronic waste, and the usage of hazardous substances are included in an
environmental load of digital technologies
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 E-waste refers to electronic or electrical products that come near to or have


come to the end of their lifecycle, for instance, office equipment, televisions,
household appliances, tablets, mobile phones, and computers

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Waste Management
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(Continued)

Generation of E-Waste Each Year


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Greenhouse Gas Emission
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 Emissions from individuals and organisations are the effect of unsustainable


living that affects the planet
 Greenhouse gases (GHGs) are one of the significant kinds of emission.
Basically, they are in the form of carbon-based emissions that result in the
greenhouse effect by trapping more heat from the sun
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 Organisations and governments worldwide made emissions reduction as


their environmental priority when the impact of GHGs on the climate was
acknowledged as urgent by establishing the UN Framework Convention for
Climate Change (UNFCCC)
 Net-zero and carbon neutrality are the two essential concepts that
organisations use to define their vision and objectives related to emissions.
Both net-zero and carbon neutrality set targets for reduction, quantification,
and offsetting GHG emissions, but there are differences in both terms

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Greenhouse Gas Emission
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Targets for Emissions


Carbon Neutrality Net Zero
Emissions Boundaries It needs scope 1 and 2 It involves global scope 1, 2,
emissions, along with scope 3 and 3 organisation's emissions
emissions encouraged but not
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compulsory

Scope of the Claim/Report It can refer to a particular It refers to the entire


product or service organisation

Emission Reduction Targets In this, required targets are In this, the emission reduction
not specified targets should align with a
1.5°C science-based target

Residual Emissions In this carbon offsets are Specific GHG removals are
accepted needed

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Greenhouse Gas Emission
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Targets for emission introduces some important concepts

1. Scopes 1, 2, and 3 Emissions


 Scope 1 - Direct Energy: GHG emissions from greenhouse gas sources
controlled or owned by the organisation
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 Scope 2 - Indirect Energy: GHG emissions from the generation of imported


heat, steam, or electricity that the organisation consumes
 Scope 3 - Other Indirect: GHG emissions, apart from indirect energy GHG
emissions, result from activities of an organisation but occur from GHG
sources controlled or owned by other organisations

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Greenhouse Gas Emission
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2. Science-Based Targets
 Targets for decreasing GHG emissions align with what the latest climate
science deems essential to accomplish the Paris Agreement's objectives
 This restricts global warming to well less than 2°C above pre-industrial
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levels as well as pursues efforts in order to limit warming to 1.5°C


 Organisations commit to targets that are science-based, and they can also
follow guidance from the Science-Based Targets Initiative, which gives
information for many industries involving IT

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Greenhouse Gas Emission
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3. Carbon Offset
 A mechanism that is used for compensating all or part of the carbon
footprint via the release of, the reduction in, the prevention of, or the
removal of an amount of GHG emissions in a process that is outside the
product system under study
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 The organisation compensate for the impact when they cannot reduce GHG
emissions
 For instance, energy efficiency measures, renewable energy technologies,
and reforestation or afforestation

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Digital Poverty
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 Digital poverty is the incapability to interact fully with the digital world,
caused by several reasons
 Digital capital is the basis of our capacity to engage fully with the digital
world
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 The significance of digital capital and poverty is evident with the world
becoming digital in different ways; individuals or organisations who cannot
work within the digital sphere are excluded
 Organisations can assist communities in interacting fully with the digital
world via donating hardware to charities and schools, providing training, as
well as building awareness regarding digital products

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Digital Carbon Footprint
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 A lot of debate and interest is generated by the carbon emission from digital
technologies
 It can be difficult to keep the carbon footprint information up to date as
digital businesses are continuously developing in terms of use, equipment,
and energy efficiency
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 An organisation must find an appropriate approach to reporting, calculating,


and optimising its digital carbon footprint before describing its vision for
digital capital
 It is not difficult to calculate carbon footprints, but it requires adequate
technology's understanding itself to provide accurate results
 Suppose a digital carbon footprint of an organisation is being addressed in
its sustainability vision

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Digital Carbon Footprint
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(Continued)
 Streamed video and internet surfing compared with electricity consumption
of other activities Electricity for the Electricity for
ICT activities ICT devices Connections Calculations ICT activities other activities
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Smartphone (3W) 18W x 2h 0.04kWh Running new Fuel for petrol


Watching fridge, 24h car driving
Streamed Including 5W
(CPE + 10W) ~0.3kWh 1km ~0.7kWh
Video
for 2h Laptop (30W) (networks and 45W x 2h 0.09kWh
data centres)

Electric car LED light


TV screen (100W) 115W x 2h 0.2kWh driving 1km bulb, 2h
~0.15kWh ~0.01kWh

Smartphone (3W) Including


Internet 13W x 5min 0.001kWh
10W for Boiling 1 litre
Surfing of water in
networks and electric kettle
for 5min
data centres ~0.1kWh
Tablet (10W) 20W x 5min 0.002kWh

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Digital Carbon Footprint
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Some facts regarding the impact of digital technologies

• As per a few estimates, digital technologies are accountable for 1.4% of


entire global GHG emissions and 3.6% of global electricity consumption, the
major consumption being in:
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1. Manufacturing and Production: It is evaluated that 10 tonnes of carbon


dioxide could be emitted by 1 tonne of laptops

2. Usage:
 Growth in the Number of Consumer Devices: Cisco evaluates that
around 650 million mobile devices, as well as connections, were added
over 2017. The OECD evaluates that a standard OECD household having
two children may now have up to ten connected devices on an average
per household

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Digital Carbon Footprint
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(Continued)
 Data Flows: It is evaluated by CISCO that in 2017 the global mobile data
traffic grew by 71%. At the end of 2017, global mobile data traffic reached
11.5 exabytes per month
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 Energy Use and Energy Efficiency Across Networks: By providing


common methodologies and measurements, international standards can
assist in addressing these concerns. Multiple key performance indicators
(KPIs) and methodologies are available for assessing the environmental
impact, involving measuring carbon footprint, efficiency across telecom/ICT
networks, goods, and services and energy performance
 Data Centres: Data centres are rising rapidly globally, with numerous data
centres being installed in Scandinavia, where average temperatures are
lower. Data centres differ in their energy sources and energy efficiency

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Module 8: Describe the Key Sustainability


Solutions

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Corporate Social Responsibility
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 Many organisations relate sustainability initiatives with CSR

 CSR means how organisations make sure that they work sustainably; the
way in which they behave towards their customers and employees; how
they choose suppliers as well as partners; and the effect of their activities
on the environment and the communities of their ecosystems
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 Accountability is based on shared principles and values

 For instance, the UN Global Compact and its guiding principles provide
collections of normative principles so that business conduct and policies can
be guided specifically pertaining to the notion of doing no harm as well as
leaving no one behind

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Corporate Social Responsibility
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(Continued)
 The following are the examples of ESG issues given by the Principles for
Responsible Investment (PRI) Reporting Framework to organisations for
guidance purposes
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Environmental (E) The issues related to the functioning and quality of the natural systems
and natural environment. These involve greenhouse gas (GHG)
emissions, biodiversity loss, climate change, energy efficiency' air,
water, or resource depletion or pollution, waste management,
renewable energy, stratospheric ozone depletion, ocean acidification,
changes in land use, and changes to the nitrogen and phosphorus
cycles

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Corporate Social Responsibility
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(Continued)

Social (S) The issues related to the well-being, rights, and interests of communities and people. These
involve human rights, child, slave, and bonded labour, labour standards in the supply chain,
workplace health and safety, freedom of association and freedom of expression, diversity, human
capital management and employee relations, relations with local communities, health and access
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to medicine, activities in conflict zones, HIV AIDS, consumer protection, and controversial
weapons

Governance (G) The issues related to the governance of companies as well as other investee entities. In the listed
equity context, these involve size, diversity, skills, and independence; board structure; executive
pay; stakeholder interaction; disclosure of information; shareholder rights; business ethics;
internal controls and risk management; bribery and corruption; stakeholder engagement; and, in
general, problems dealing with the relationship between management of the company, its
shareholders, its board, and its other stakeholders. This category may also comprise matters of
business strategy, containing both the implications of business strategy for social and
environmental issues and the way in which the strategy is to be implemented. Governance issues
in the unlisted asset classes also involve matters of fund governance, like the powers of advisory
committees, fee structures, valuation issues, and so on

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Corporate Social Responsibility
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(Continued)
 The following are the examples of stakeholder interest in the sustainability
of an organisation:
Consumers Investors Employees Regulators
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Products that are marked as The Task Force on Financial In the US, around 75% of 18 Paris Accord to limit the rise
sustainable grew 5.6 times Disclosures that are related to 34-year-olds anticipate of temperature to 1.5°C
faster than regular products to climate is supported by their employers to take a ratified by 189 parties
investors holding $118 tn stand on climate change

Around 73% of global Around 78% of global With greater CPR, the 127 countries tax or ban
consumers would probably investors state that they employees productivity in single-use plastics
or definitely change place more emphasis on the firm rises by 16%
consumption habits to lessen sustainability than they did
the impact on the five years back
environment

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Responsible Sourcing
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Definition: Responsible Sourcing


A voluntary commitment by companies to consider social and environmental
factors when managing their relationships with suppliers
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 In the modern economy, all organisations are interconnected

 Sustainability cannot be accomplished by a single organisation in isolation

 Instead, it needs the joint effort and transparency of most members of the
supply networks, consisting of suppliers, raw material producers, and the
end consumers
 Responsible sourcing addresses the need for transparency and end-to-end
sustainability across supply chains

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Responsible Sourcing
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Tier 1, 2, and 3 Suppliers


 The suppliers can be categorised according to tiers by the businesses that
manufacture physical products, which will help to clarify what goes into an
end product
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 Thinking regarding where and the way in which items are purchased is a big
step towards addressing social responsibility and environmental
sustainability
 The following are the three main tiers for suppliers:

 Tier 1: This involves the partners with whom you can conduct business
directly
 Tier 2: This involves the suppliers of materials to Tier 1

 Tier 3: This involves the suppliers who commonly work in raw materials
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Sustainable Consumption and
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Definition: Sustainable Consumption and Production


Production
The use of services and related products that respond to basic needs and bring a
better quality of life while minimising the use of natural resources, toxic materials,
and the emissions of waste and pollutants over the lifecycle of the service or product
that jeopardise the needs of future generations
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 Several organisations and individuals aim to make their consumption more


reliable and reduce the usage of our planet's resources

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Circular Economy
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 A circular economy is an approach to sustainability, gaining traction among


policymakers, economists, and business individuals
 A circular economy can be defined as a new manner of creating value and
eventually prosperity via extending product lifespan and relocating waste in
effect, utilising resources more effectively by using them more than once
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 Organisations obtain the raw material from the environment and convert
them into a new product, parts of which are then discarded into the
environment in a traditional economy
 This is particularly clear when the products created by the organisation
incorporate goods to exchange

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Circular Economy
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(Continued)
 The raw materials and other resources may last longer in service
relationships, but ultimately, a few parts of the resources that are used for
service provision will be discarded in the environment
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 It is a linear process that has a beginning and an end. In this system, waste
accumulates, limited raw materials eventually run out, and manufacturing
processes are usually inefficient, resulting in further waste of natural
resources
 Materials for the new product come from an old product in a circular
economy. As much as potential, everything can be remanufactured, reused
or, as a last resort, used as a source of energy or recycled back into raw
material

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Circular Economy
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Circular Economy Versus the More Traditional, Linear


Model
• Linear Supply Chain
• Circular Economy Practices

le
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c
ecy

y
R
erg
te/
en ra
ene
to
g
Re re
ste

ct u
a
Wa

f
lace anu use
Rep em ir/Re
ce/ R Repa
Redu
Optimise

 Material Supply  Design and Manufacturing  Distribution and Use  End of First Life

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Circular Economy
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Circular Business Model


 A circular business model describes the way in which an organisation
creates as well as captures value for its stakeholders simultaneously as
minimising social and ecological costs by contributing to a circular economy
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 Value is maximised, and waste is minimised in a circular economy, which is


accomplished by reusing, reducing, and recycling resources
 The following diagram shows how resources are reused in a circular business
mode

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Unit 2: Understand the Value, Benefits, Costs,


and Risks of Sustainability

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Learning Outcomes of Unit 2
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 Module 1: Describe the purpose of a materiality assessment

 Module 2: Describe the key sources of organisational sustainability risks

 Module 3: Describe the key organisation-level stakeholder groups and their


expectations
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 Module 4: Describe the key types and sources of sustainability standards


and regulations
 Module 5: Explain the role of services and the service economy in
sustainability
 Module 6: Explain the recommendations for sustainability Return on
Investment (ROI)/Value on Investment

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Module 1: Describe the Purpose of a


Materiality Assessment

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Materiality Assessment
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 A sensible way of considering these factors is to conduct a materiality


assessment
 Initially, this method was utilised to identify the ‘material’ aspects of
sustainability which are most important that must be involved in public
sustainability reports of an organisation
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 As the method developed, it became clear that it is also very useful in


strategic planning and describing a sustainability vision

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Materiality Assessment
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(Continued)
 A materiality assessment is utilised in identifying sustainability topics
involving challenges and objectives that are:
 necessary for the organisation and its stakeholders
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 of high impact on the business positioning and strategy of the


organisation
 under the organisation's reasonable control and can be addressed or
affected
 An initial list of topics for an organisation to evaluate is usually derived from
the UN SDGs and the 169 supporting targets. It ensures that the
sustainability strategy of an organisation will contribute to the global goals

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Materiality Assessment
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Why Conduct a Materiality Assessment?


 Several reasons why an organisation must conduct a materiality
assessment. A materiality assessment:
 Can be helpful when stakeholders who are relevant are engaged
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 Ensures that the sustainability strategy addresses social as well as


environmental topics and that sustainability initiatives are relevant for the
organisation
 Ensures that the sustainability strategy is embedded in the broader
business strategy
 Assists the organisation in identifying trends as well as factors that may
impact the organisation’s ability significantly to create long-term value

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Materiality Assessment
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(Continued)
 Identifies opportunities in developing new products as well as services

 Prioritises the resources of the organisation for the sustainability issues that
matter most to the business as well as stakeholders
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 Highlights sustainability issues that are necessary but not addressed


currently
 Identifies the requirements of the most important stakeholders as well as
lets the concise and relevant information's reporting
 Assists the organisation to identify where it is creating or decreasing the
value for society

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Materiality Assessment
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How to Conduct a Materiality Assessment


 Several materiality assessment reports and a few descriptions of the
materiality assessment process are available online, differing in wording and
format but provide some important points:
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 Planning and Preparation: As with any assessment, a materiality


assessment identifies the purpose as well as the audience. It is required
as the first step to understanding who will be reviewing as well as
analysing the assessment report & the decisions that are supposed to be
based on it. When these questions are answered, it is likely to qualify the
assessment's scope and the approach in order to prioritise sustainability
topics

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Materiality Assessment
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(Continued)
 Identifying the Topics and Assessment Criteria: A materiality
assessment is basically a sustainability topics' prioritisation. However, it isn't
easy in identifying a long list of topics and then apply the prioritisation
criteria which is relevant. These two tasks typically constitute the second
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materiality assessment's step


 The UN SDGs and targets often act as a common first source of
sustainability topics for the materiality assessment and can be amended
with industry-, region-, country-, and market-specific issues and objectives
and the aspirations and challenges of the organisation

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Materiality Assessment
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(Continued)
 This is the best practice to commonly map the agreed topics and targets
with the ones having specific importance for the organisation. These topics
are categorised for the prioritisation's convenience
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 Categorisation can reflect the market positioning of the organisation, the


triple bottom line (TBL) pillars, or the service management's four dimensions
 Still, it should be easy, practical, and relevant for the organisation to work.
The most typical criteria for evaluating the material topics are business
impact as well as key stakeholders’ priorities

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Materiality Assessment
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(Continued)
 Materiality Research and Analysis: The next assessment step is to
explore as well as research the selected sustainability topics; this will give a
good knowledge of their impact on the business as well as stakeholders. It
may take significant time and resources, but the more comprehensively this
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step is conducted, the more relevant as well as reliable the assessment's


output will be. It involves gathering feedback from stakeholders on
sustainability topics. Engaging stakeholders in the assessment early and not
just presenting them with the results is required
 Prioritisation and Integration: On the basis of research, the sustainability
topics are prioritised, from negligible to those major materiality. The
assessment's results must be communicated to the stakeholders who are
relevant. The most important topics will describe the activities, funding
priorities, and management focus of the organisation and must be understood
and supported by the decision-making stakeholders. When approved and
actively supported by the leaders of the organisation, the materiality
assessment
Based report
upon AXELOS® ITIL® 4 materials. is isusually
Material published
used under license for Allthe
from AXELOS Limited. rightsbroader
reserved. internal as well as
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Materiality Assessment
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 The following tables give an instance of materiality questionnaire and


materiality assessment as placed together by the UK government’s
Department for Environment, Food and Rural Affairs (DEFRA)
 Materiality Questionnaire by DEFRA
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Irrelevant Low Relevance Relevant Very Relevant Priority

Climate action/net zero (SDG 13)

Building capacity in sustainability


(SDG 17)
Circular economy (SDG 12)
Modern slavery (SDG 8)
Supply chain – health and safety
(SDG 8)

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Materiality Assessment
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Materiality Questionnaire by DEFRA

1 2 3 4
Integrate climate change
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(SDG 13)
Procurement policies (SDG
12)
Securing supply chain
working environment for
workers (SDG 8)
Building experience (SDG
17)
Reducing waste (SDG 12)

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Materiality Assessment
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(Continued)
 The following image shows an example of a simple red, amber, green (RAG)
status for the three levels of digital sustainability
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Materiality Assessment
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Materiality Assessment Outputs


 Materiality assessment outputs are utilised in several reports at any
strategic and operational business level). An assessment report is the
primary output of a materiality assessment that must include the most
important topics from all perspectives which are considered
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 It informs the sustainability vision, strategy, and reporting framework of the


organisation

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Materiality Assessment
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 Nestlé’s material issues for maximising long-term value across the value
chain Agriculture Tier 1 suppliers Nestlé Retail/business channels Consumers
Pension Management
Retailer Relationships
Geo-political and Economic Context
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Cyber Security
Acquisitions and Investments
Diversity and Inclusivity
Innovative Business Models
Digital and Technology
Competitiveness and Productivity
Talent Attraction and Retention

Key Issues that Matter Most:


Moderate Significant Major

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Materiality Assessment
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 The impact of Nestlé’s activities on the SDGs

SDG 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
People and pets
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Accessible nutrition
Data privacy
Changing consumer behaviours
Nutritional value of the
portfolio
Product quality and safety
Responsible marketing and
brand communication

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Materiality Assessment
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(Continued)

SDG 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Communities
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Animal Welfare
Responsible Sourcing
Human Rights
Product Regulation and taxation

Business Ethics
Community Relations

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Module 2: Describe the Key Sources of


Organisational Sustainability Risks

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Sustainability Risk Assessment
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 It is suggested that an organisation does a sustainability risk assessment as


an ongoing project, programme, or initiative (organisational change, service
change, service design, service deployment, and so on)'s part
 Understanding as well as addressing the risks and opportunities of
sustainability that helps the organisation to work as a successful and
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responsible business

Key Message
ITIL defines risk as: ‘A possible event that could cause harm or loss, or make
it more difficult to achieve objectives.’
Sustainability risk can therefore be defined as an environmental, social, or
governance event or condition that, if it occurs, could cause an actual or a
potential material negative impact on the organisation

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Sustainability Risk Assessment
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(Continued)
 This identifies and evaluates risks that might influence the sustainability
vision and the supporting initiatives of sustainability. Necessarily, these risks
are not of an ESG nature, but by influencing the sustainability initiatives,
they can undermine the sustainability strategy of the organisation
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 For instance, usually in a sustainability project, the project risks that are
related to the scope, quality, or costs (or a programme or a small initiative)
may impact the larger sustainability landscape

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Sustainability Risk Assessment
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(Continued)
 The following table shows activities for risk identification, analysis, as well as
treatment:
Activity Description Sustainability-focused
Recommendation
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Risk Risk identification may be done regularly or triggered by an event like a security breach, a new Think about the sustainability
identification service, or entering a relationship with a new partner. Many techniques can be used in order to pillars (environmental, social,
identify risks, including: financial) as both sources of
• Review of previous risk registers risk and affected areas. Identify
• Service portfolio and service models' analysis risks at each level (macro,
• Brainstorming micro, and internal)
• Practical exercises in thinking about specific scenarios Use sustainability reports which
• Interviews with stakeholders, including customers, technical staff, users, and so on are relevant and analytics as a
• Threat assessments as well as vulnerability assessments, which a third party can perform if source of information on both
resources and skills are not internally available risks as well as methods to
• Checklists on the basis of standards and best practices treat them
• Risks that organisation's other parts have identified

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Sustainability Risk Assessment
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(Continued)

Activity Description Sustainability-focused


Recommendation
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• Risks posed to a suggestion box or an anonymous email account


• Information regarding risks identified by vendors, partners, or other
organisations
• The output of technical tools, like firewall logs or reports from intrusion
detection systems
• Service level reports, displaying trends as well as potential failures to
meet the agreed quality of services
Each identified risk is assigned an owner accountable for ensuring that the
risk is understood and appropriate action is taken. Risks and risk owners
are documented in a risk register

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Sustainability Risk Assessment
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(Continued)

Activity Description Sustainability-focused


Recommendation

Risk Each risk's possibility as well as potential impact is analysed, by using both Define risks to the
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Treatment qualitative or quantitative methods as described by the risk management agreed sustainability
policy objectives as well as
On this basis of analysis and the risk appetite of the organisation, each and materiality assessment.
every risk is evaluated to determine what level of time and budget need to be Assess the impact of the
used in order to manage the risk risks on the goals'
The risk owner both analyse as well as evaluate themselves or delegate it and achievement.
review the findings. The risk register is updated with the risk analysis and Involve relevant
evaluation's output stakeholders that are
identified throughout the
materiality assessment

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Sustainability Risk Assessment
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(Continued)

Activity Description Sustainability-focused


Recommendation
Risk Each risk's possibility as well as potential impact is analysed, by using both Define risks to the
Treatment qualitative or quantitative methods as described by the risk management agreed sustainability
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policy objectives as well as


On this basis of analysis and the risk appetite of the organisation, each and materiality assessment.
every risk is evaluated to determine what level of time and budget need to Assess the impact of
be used in order to manage the risk the risks on the goals'
The risk owner both analyse as well as evaluate themselves or delegate it achievement.
and review the findings. The risk register is updated with the risk analysis Involve relevant
and evaluation's output stakeholders that are
identified throughout
the materiality
assessment

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Sustainability Risk Assessment
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(Continued)
 However, it is required to consider the sustainability-specific characteristics
of risks. These include the following:
 The sustainability pillars that are affected (environmental, social,
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economic)
 The affected goals (common, like the UN SDGs, or organisation-specific)

 The areas and targets which are affected (GHG emissions, waste,
responsible sourcing, etc.)
 Offsets as possible risk mitigation

 The effect of sustainability initiatives on other business areas (costs,


positioning, relationships)

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Sustainability Risk Assessment
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(Continued)
 These risks can originate from:

 Partners as well as suppliers who are not sustainable or not transparent


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 Customers failing in adopting sustainable consumption practices (like


recycling or reusing the goods and packaging of the organisation)
 Biases and habits resulting in irresponsible work practices and inequality

 Lack of a sustainability vision as well as attention to the topic

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Sustainability Risk Assessment
theknowledgeacad

(Continued)
 The following table gives instances of questions that can be used to conduct
the sustainability risk assessment
ESG Criteria Risk/Opportunity Title Question
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Governance Corporate Sustainability Commitments Will this purchase impact any corporate
sustainability commitments' achievement?
Environmental Materials: other What important raw materials (besides timber)
does the product or service contain or require?
The term 'key' refers to materials obtained from
conflict zones that are neither recyclable or
whose disposal would be deemed hazardous
waste (i.e., subject to RoHS laws); for example,
the toxic heavy metal cadmium used in
quantum dots for electronic displays.

Carbon Efficiency Is it carbon or energy-intensive to produce or


utilise this product or service?

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Sustainability Risk Assessment
theknowledgeacad

(Continued)
ESG Criteria Risk/Opportunity Title Question

Environmental Water Efficiency Will large volumes of water be utilised in order to produce this
product or deliver service? For instance, is the production process
water intensive? Will large volumes of water be used throughout the
in-use lifecycle stage?
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Environmental Incidents Is it possible that the product or delivery of the service could
potentially cause an environmental incident like a pollution incident,
silt mobilisation, or fish kill? Will the work involve working in or near
water or in a sensitive or protected area?

Waste (including packaging and Will waste issues which are needed to be dealt with as part of this
consumables) contract?

Biodiversity and Invasive Species Will this contract influence biodiversity? Are there possible be invasive
species risks to manage?

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Sustainability Risk Assessment
theknowledgeacad

(Continued)
ESG Criteria Risk/Opportunity Title Question

Social Labour and Human Rights Concerns Is it possible that the product (including its key components) or the
people delivering the service originate in the developing world? For
instance, in connection with textiles, IT recycling, rubber, electronics,
mathematical modelling, or call centres?
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Community Impacts and Could this product or service harm the local community? For instance,
Opportunities expanded vehicle movements or noise? Are there any opportunities
for improvements in the local community?

Diversity and Inclusion Is there particular diversity or inclusion issues associated with the
service or product?

Exploitation Is there the potential for employees of the suppliers in the supply
chain to be exploited? For instance, low pay, migrant workers,
antisocial hours, or inequality of opportunity

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theknowledgeacad
emy

Module 3: Describe the Key Organisation-


Level Stakeholder Groups and their
Expectations

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Describe the Key Organisation-level
Stakeholder Groups and their
Expectations
theknowledgeacad

Stakeholders
 Each and every organisation communicates with various stakeholders with
requirements and expectations for the work practices and products and
services of the organisation
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 Instances of stakeholders include the following:

 Service consumers (sponsors, customers, and users)


 Investors
 Governments
 Society, and community members
 The organisation’s beneficiaries (such as charities)

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Describe the Key Organisation-level
Stakeholder Groups and their
Expectations
theknowledgeacad

(Continued)
 A way to understand how each stakeholder affects or may be affected by
the organisation's sustainability initiatives is to map the stakeholders in a
matrix categorised as per their influence as well as interest levels. The
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diagram shows an instance of stakeholder analysis and mapping

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Describe the Key Organisation-level
Stakeholder Groups and their
Expectations
theknowledgeacad

(Continued)
 Then, the stakeholders can be managed as per their combined influence and
interest and held satisfied, informed, as well as monitored with a proper
communication level by the actions listed in the following Table:
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Stakeholder Communication
Keep Satisfied Communicate and engage in demonstrating and reassuring that their voices are being heard on key issues.
Though, evade non-informative low-value contacts so that they do not lose interest in the project

Manage Closely Ensure that these stakeholders are completely engaged; address their concerns as well as requirements

Keep Informed Keep these stakeholders regularly informed to maintain their interest—promptly address issues or concerns
which are arising
Monitor Monitor the attitudes of stakeholders and keep them informed, with minimal effort. Do not overload them with
information that is unnecessary

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Describe the Key Organisation-level
Stakeholder Groups and their
Expectations
theknowledgeacad

(Continued)
 The following table shows some of the organisation’s adherence to
sustainability requirements on the behaviour of the stakeholders, together
with a few typical stakeholder expectations:
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Stakeholders Possible decisions and/or behaviour Typical stakeholders’ expectations


driven by the organisation’s
sustainability strategy
Service Consumers: Sponsors • Choosing the organisation as a service • The organisation meets regulatory
provider needs for sustainability
• Willingness to pay more for the • The organisation has a positive
organisation’s services sustainability image
• Willingness to participate in the • The organisation is not included in
organisation’s marketing activities irresponsible environmental and social
practices

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Describe the Key Organisation-level
Stakeholder Groups and their
Expectations
theknowledgeacad

(Continued)
Service • Willingness to use the organisation’s • The organisation’s products and services are responsibly
Consumers: services sourced and environmentally friendly
Customers • Loyalty to the organisation’s products • The organisation supports sustainable development
and Users and services • The organisation encourages responsible consumption
• Willingness to participate in the
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organisation’s marketing activities

Suppliers • Willingness to supply for the • The organisation uses the supplier’s services for a good
organisation cause
• Pricing policies applied to the • The organisation has a positive sustainability image
organisation • The organisation meets sustainability standards and
regulations
• The organisation contributes to circular economy
• The organisation follows fair trade standards

Employees • Willingness to work at the organisation • The organisation treats employees fairly
• Motivation to achieve the organisation’s • The organisation has and achieves clear sustainability
goals goals
• Loyalty to the organisation • The organisation invests in sustainability

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Describe the Key Organisation-level
Stakeholder Groups and their
Expectations
theknowledgeacad

(Continued)
Investors • Investing in the organisation’s • The organisation meets regulatory needs for sustainability
assets (shares, products, projects) • The organisation has a positive sustainability image
• The organisation is not included in irresponsible environmental and social
practices
• The organisation is financially sustainable
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Society and • Support of the organisation’s • The organisation contributes to society development
Community operation in the community • The organisation participates in social and environmental programmes
Members • Willingness to cooperate • The organisation is safe for the environment and beneficial for the local
• Imposes sanctions and regulation community

Organisation’s • Accepting sponsorship and/or • The organisation has a positive sustainability image
Beneficiaries support from the organisation • The organisation meets or exceeds sustainability standards
Willingness to participate in the • The organisation demonstrates social responsibility
organisation’s marketing activities

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Describe the Key Organisation-level
Stakeholder Groups and their
Expectations
theknowledgeacad

Key Message

• These recommendations apply to all groups when collecting stakeholders’ requirements for sustainability and should be used
universally:
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• To gather formal needs, include sustainability criteria in the negotiation and agreement templates used for communications
with the stakeholder group (for example Service Level Agreements (SLAs) for customers, funding requests for investors)
• To understand expectations, encourage sustainability-focused discussions with the stakeholders. Ask them about their general
attitude to sustainability and its three pillars, discuss their vision of a sustainable organisation, and ask about their own
sustainability initiatives, goals, and principles
• Inspire proactive discussion of sustainability, and especially of future requirements and expectations
Therefore, it is essential to remember that, depending on the stakeholder group, the expectations and means of collecting the
requirements will vary. An organisation should identify the most relevant for its situation

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theknowledgeacad
emy

Module 4: Describe the Key Types and


Sources of Sustainability Standards and
Regulations

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Regulations and Standards
theknowledgeacad

 An essential part of understanding the ‘Where are we now?’ step is to


understand and manage mandatory regulations and conformance with
applicable standards
 Compliance with mandatory regulations and conformance with the
applicable standards have been the main drivers of sustainability journeys
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for organisations and governments


 Generally, there are two types of standards and rules: mandatory and
voluntary
 Regulations have taken the lead as organisations are held responsible for
social and environmental responsibility
 At the same time, governments and international regulators motivate
organisations to integrate sustainable practices beyond compliance with the
mandatory requirements

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Regulations and Standards
theknowledgeacad

(Continued)
 There has been a surge in sustainability reporting legally mandated by
governments over the past decade, which has also caused a sharp rise in
voluntary reporting
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 The following are the examples of the leading voluntary standards and
frameworks:
The international
The global reporting The carbon disclosure
organisation for
initiative (GRI) project (CDP)
standardisation (ISO)

The sustainability The international


The climate disclosure
accounting standards integrated reporting
standards board (CDSB)
board (SASB) council (IIRC)

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theknowledgeacad
emy

Module 5: Explain the Role of Services and


the Service Economy in Sustainability

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Other Kinds of Sustainable Business
theknowledgeacad

 The three types of sustainable business models discussed are not mutually
Mode
exclusive; in fact, they can be combined. An organisation can attain a social
mission by creating a circular economy, which includes stakeholders from
the BOP
 Another essential vision in sustainable business models is the product-
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service system, which creates service offerings that allow the needed results
for consumers without a transfer of goods or ownership
 The shift in an organisation’s business model from goods to services can
decrease an organisation’s carbon footprint. At the same time, it can allow
more value for customers as well as other stakeholders
 Usually, circular economies and business models are mostly used in service
and business models. The overall use of car-sharing is one example of how
access to resources by service relationships replaces users owning the
resources

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Approaches Supporting Sustainable
Business Models
theknowledgeacad

 There are various strategies for sustainable business models

 The examples in the table (next slide) aim to optimise the usage of
resources and enhance value for stakeholders; these should be combined to
help the organisation’s sustainable business model
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 The last two rows in the table (services replacing goods and digitisation)
describe two significant and closely connected economic trends
 Consumers own resources to access them when required, and providers
have acknowledged by delivering on-demand services

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Approaches Supporting Sustainable
Business Models
theknowledgeacad

 The following table defines the Strategic approaches that support an


organisation’s sustainable business model:

Strategic Approach Description Examples


Maximising material and energy Use of technologies and solutions Data centres becoming more
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efficiency that deliver the required results by energy efficient by using power-
using less energy and fewer saving standby modes, energy
resources monitoring software, and efficient
cooling systems

Using renewables Shifting from non-renewable to Use of solar panels to produce


renewable resources electricity for residential and
business consumers1

Closing resource loops Reusing, recycling, and Shopping bags produced from
remanufacturing of resources recycled shopping bags

Building inclusive economies and Including formerly underserved Heifer International, and similar
systems stakeholders in the economy or BOP projects
system

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Approaches Supporting Sustainable
Business Models
theknowledgeacad

(Continued)

Strategic Approach Description Examples


Encouraging responsible Providing information and incentives • Information campaigns
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consumption for responsible consumption, closing • Charging to use single-use


resource loops, and reducing the disposable items
carbon footprint • Making some housekeeping
services in hotels optional or
chargeable

Services replacing goods Shared use of resources by shifting Cars and tools sharing services or
from selling or acquiring goods to leasing IT equipment
delivering or consuming services

Digitisation Shifting from physical to digital • Reduced travel


solutions (for example, from on-site • Moving to flexible or home
to virtual conferences) to reduce the working
carbon footprint

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theknowledgeacad
emy

Module 6: Explain the Recommendations for


Sustainability Return on Investment
(ROI)/Value on Investment (VOI)

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Return on Investment in
theknowledgeacad

 The question of Return on Investment (ROI) or Value on Investment (VOI)


Sustainability
must be considered when a goal or an initiative is discussed and approved
 It is sometimes referred to as a Return On Sustainability Investment (ROSI)
within the context of sustainability
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 Both ROI and VOI estimates and analyses are only possible later, where
prices and results of the initiatives are understood or estimated
 Therefore, to confirm that ROI and VOI are understood at those steps, it is
necessary to consider them from the beginning

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Return on Investment in
theknowledgeacad

(Continued)
Sustainability
 Progress can be realised in different methods, including an addition in
investor demand, increase in brand value, increased employee engagement,
savings for the organisation, and talent retention and attraction
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 Several factors can make ROI and VOI evaluation challenging for
sustainability initiatives to determine. These contain

Complexity of the
Long-term horizon of Novelty of the area Lack of specialised
environment and
planning and high level and lack of applicable knowledge within the
limited understanding
of uncertainty data for forecasting organisation
of the impact

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Return on Investment in
theknowledgeacad

(Continued)
Sustainability
 To adjust the ROI and VOI evaluations for sustainability initiatives, consider
the following:
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Focus on value, including the non-financial aspects

Think and work holistically: consider all types of resources and capitals when evaluating costs and (dis)benefits (use the four dimensions of service m
framework as a guidance for categorisation)

Follow the recommendations for good corporate reporting

Consider the predicted development of legislation

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theknowledgeacad
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Unit 3: How Digital and Information


Technology Support Sustainability

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Learning Outcomes of Unit 3
theknowledgeacad

 Module 1: Explain the role of digital technology in sustainability

 Module 2: Describe how digital technology impacts sustainability


emy

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theknowledgeacad
emy

Module 1: Role of Digital Technology in


Sustainability

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The Role of Technology in
theknowledgeacad

 Sustainability planning can be an opportunity to explore the way in which to


Sustainability
use the resources of the organisation more valuably or efficiently
 This can be accomplished as the organisation becomes more interconnected
and acquires better insights into its inner workings and its ecosystem
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 For instance, several transport organisations have enhanced their usage of


resources and reduced waste by using centralised information systems
 These systems monitor, evaluate, predict, and optimise the load of their
vehicle parks, vessels and planes
 Retail companies are another kind of organisation that has enhanced their
carbon footprint by optimising their delivery routes and stock levels

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The Role of Technology in
theknowledgeacad

(Continued)
Sustainability
 There are several instances of optimisation, but they have few things in
common, like a decrease in resource misallocation and a resulting
improvement in sustainability because of improved communications, better
utilisation of resources, and a more holistic view of demand
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 These changes became feasible due to several factors like the rapid
development of IT, as well as innovations like AI and, more especially,
machine learning
 Improvements in the overall consumption and supply ecosystem can be
accomplished through information systems that can detect elements that do
not adhere to an organisation’s sustainability objectives and values

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The Role of Technology in
theknowledgeacad

Digital Transformation for Sustainability


Sustainability
 ITIL® 4: High-velocity IT describes digital transformation as the usage of
digital technology to allow an important improvement in the realisation of an
organisation’s objectives that could not possibly have been accomplished by
non-digital means
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 Several strategic sustainability initiatives, like a transition to a sustainable


operating model or business, are probable to be supported or enabled by a
digital transformation
 Digital transformation should not be a final goal; instead, it is a means of
attaining a goal as well as enabling an agreed strategy
 These strategies and goals can include or be focused on sustainability

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The Role of Technology in
theknowledgeacad

Sustainable IT
Sustainability
 Technology is very important in sustainability initiatives, but it is also the
subject of many other initiatives
 The growing role of technology has resulted in the rising importance of
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attaining an organisation’s sustainability goals


 The sustainability goals for IT differ relying on the organisation’s context

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The Role of Technology in
theknowledgeacad

(Continued)
Objectives in Technology
Sustainability
Areas of Focus for Technology
• Social Progress and Equality • Compliance with modern slavery regulation
• Paying a living wage
• Anti-discrimination policies
• Hygienic and safe working conditions in the organisation as well
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as the supply chain

• Environmental protection • Decreasing emissions and aiming to attain net-zero emissions


Increasing the usage of renewable energy
• Conservation of Natural • Make sure that technology hardware is not sent to landfill
Resources • Conserving water
• Enhancing the circular economy and decreasing waste by
reusing products in different ways

• Sustainable Economic Growth • Make sure that a proportion of the workforce are local to that
area

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theknowledgeacad
emy

Module 2: Impact of Digital Technology on


Sustainability

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Digital Sustainability
Definition: Digitisation
theknowledgeacad

The process of transforming something (e.g. text, sounds, or images) from analogue
to digital form by expressing the information in binary digits
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 Nowadays, digital services and tools are an integral part of the business. It is
difficult to imagine any organisation without applications, smartphones,
online banking, or even emails
 Digital technologies play a significant role in agriculture, the transition to
renewable energies, personal lives, as well as in the future of our cities and
many other areas
 Digital technology can be selected as a specific capital category to consider
when defining a sustainability vision

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Digital Sustainability
theknowledgeacad

(Continued)

Key Message
• Digital sustainability is how digitisation can deliver global sustainable development as
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well as organisational sustainability goals as a key element of the fourth industrial


revolution. At the same time, when we are encouraging digital sustainability, we are
required to discourage digital unsustainability
• Digitalisation can assist in accelerating unsustainable consumption, and it also
provides new opportunities for a flourishing society that is based on sharing and
collaboration
• Researchers, entrepreneurs, artists, as well as citizens have already benefited from
new ways to share things and knowledge and to visualise and analyse complex issues

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The Role of Technology in
theknowledgeacad

 The following are the examples of how digital technologies enable


sustainable development: Sustainability
Machine
Learning and Cloud
Digitisation Big Data Artificial Computing
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Intelligence

• Circular Economy • Responsible • Renewable Energy


• Responsible
• Sustainable Sourcing • Circular Economy
Consumption and
Sourcing
Production
• Climate Change • Climate Change • Climate Change
• Responsible Sourcing • Circular Economy • Waste Reduction
• Waste Reduction • Waste Reduction
• Renewable Energy
• Climate Change

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The Role of Technology in
theknowledgeacad

 The following are the examples of how digital technologies enable


sustainable development: Sustainability
Internet of Satellite Demateriali
Things and 5G Blockchain Imagery sation
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• Waste Reduction • Responsible • Responsible • Sustainable


• Circular Economy Sourcing Sourcing Consumption and
• Climate Change Production
• Waste Reduction
• Waste Reduction
• Sustainable
Consumption • Responsible
and Production Sourcing
• Climate Change • Climate Change

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The Role of Technology in
theknowledgeacad

About this Step


Sustainability
 Various organisations have started to look for further profit and
development as their major strategic goals, partly because of internal and
external pressure
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 The significance of an organisation’s effect on the environment and on local


and international communities has increased
 There is a growing demand to follow the principles for sustainable
development and not live at the expense of future generations
 An organisation should make the first step, i.e., agree on its sustainability
vision to embed sustainability

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The Role of Technology in
theknowledgeacad

(Continued)
Sustainability
 The organisation should address the following questions to define a
sustainability vision:
How can our organisation What does sustainability
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What does it mean to be influence and contribute mean for our


sustainable? to sustainable organisation, and how
development globally? can we benefit from it?

Which sustainability Which sustainability


principles are the commitments are we
foundation for our ready to make as an
business development? organisation?

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The Role of Technology in
theknowledgeacad

(Continued)
Sustainability
 An organisation should agree on the following when completing this step:

The impact of the


A sustainability vision
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organisation’s digital
statement aligned with the
technologies on sustainability
business purpose and vision
(and vice versa)

The sustainability principles


The need for a sustainability
that will be incorporated into
strategy based on the
all of the organisation’s
organisation’s vision
activities

The necessary commitments Who will own the


to realise the vision sustainability vision

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theknowledgeacad
emy

Unit 4: Know How to Plan Sustainability for


an Organisation

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Learning Outcomes of Unit 4
theknowledgeacad

 Module 1: Explain the Role of Sustainability in an Organisation’s Vision

 Module 2: Describe the Key Due Diligence Considerations for Sustainability

 Module 3: Explain the Key Concerns of Achieving Sustainability in a


Volatile, Uncertain, and Complex Environment
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 Module 4: Describe the Three Dimensions (Aspects) of Strategic Planning

 Module 5: Describe the Key Elements of an Organisational Sustainability


Strategy
 Module 6: Describe the Key Elements of Sustainability Culture

 Module 7: Know How to Address Sustainability in an Organisation’s Vision

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theknowledgeacad
emy

Module 1: Explain the Role of Sustainability


in an Organisation’s Vision

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Explain the Role of Sustainability in
an Organisation’s Vision
theknowledgeacad

Key Message
Vision is a specified aspiration of what an organisation would like to become in the future.
It may involve a picture of the problems that will be solved by the organisation for
stakeholders; also, it may define the way consumers will communicate with the products
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and services of the organisation, and what the people and their skills, and the overall
structure will look like in the organisation

 The output of this step is an agreed sustainability vision statement. Usually,


vision statements are short, high-level, aspirational, as well as define a
desired future state
 Formulating a vision statement may seem simple and quick, such as
answering the question ‘What do we dream of?’

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Explain the Role of Sustainability in
an Organisation’s Vision
theknowledgeacad

Business, Digital, and Sustainability Vision


 A useful point for an organisation to start at the beginning of its
sustainability journey to ensure that its sustainability vision and strategy are
combined into its entire business vision & strategy
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 Sometimes, organisations develop more than one vision and strategy, but it
must be avoided. After describing a general organisational vision, the
organisation may require to address its desired upcoming state for aspects
like technology, sourcing, as well as product development

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Explain the Role of Sustainability in
an Organisation’s Vision
theknowledgeacad

(Continued)
 The organisation can evolve a sustainability vision in order to support the
entire vision by following this approach
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 As external pressure maximises, the topic’s positioning may change from


‘How can we make our existing business more sustainable?’ to ‘What type of
business must we do to be sustainable?’ Large energy companies give a
good instance of this evolution
 They have been known as ‘oil and gas companies, which was a clear
specification of their business until recently

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theknowledgeacad
emy

Module 2: Describe the Key Due Diligence


Considerations For Sustainability

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Describe the Key Due Diligence
Considerations For Sustainability
theknowledgeacad

Key Message
Mitigating the business as well as financial risks of unsustainability Much attention has been provided to
the call for human rights due diligence which is mandatory, which has been extended to a call recently
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for human rights and environmental due diligence. Though, a wider approach is required, drawing on a
research-based concept of sustainable value creation in planetary boundaries. Climate change, which the
Task Force of the Financial Stability Board on Climate-related Financial Disclosure has done much to raise
awareness, is just the identified planetary boundaries. Biodiversity loss, natural resource use, as well as
the release of novel entities are the other environmental categories' examples that must be included in
financial as well as business risks assessments.
Risks about social aspects must encompass human rights violations, corruption, lack of decent work, and
tax evasion. All these bring with them business as well as financial risks.
Mandatory sustainability due diligence is important for the business to mitigate these risks. A systematic
analysis of the unsustainability's risks should indeed be the core of the due diligence duties.

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Describe the Key Due Diligence
Considerations For Sustainability
theknowledgeacad

(Continued)
 Sustainability has become a significant consideration for investors,
governments, as well as other stakeholders. Decisions regarding mergers,
acquisitions, partnerships, and one-off contracts cannot be made without a
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due diligence investigation, and sustainability is an important component


 Comprehensive sustainability due diligence assessment is possible to
become mandatory in Europe and also in other parts of the world

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Describe the Key Due Diligence
Considerations For Sustainability
theknowledgeacad

(Continued)
 The ESG due diligence analysis contains the following aspects but is not
restricted to them:
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1. Environmental

a. Pollution (Land, Air, Water): Ensure accountable business practices in


excusing materials as well as substances by following national and
international regulations

b. Hazardous Substances: Ensure that there is no use of hazardous


substances in the digital products and services' production and usage (for
instance, mercury, which can result in health issues for employees and
consumers)

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Describe the Key Due Diligence
Considerations For Sustainability
theknowledgeacad

2. Social

a. Abolition of Child Labour: Ensure no child labour in the business


operations as well as supply chain
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b. Conflict Minerals: Ensure that ICT products bought by the organisation do


not utilise components from the minerals trade, which finances armed
groups or fuels forced labour, as well as other human rights violations

c. Elimination of Discriminations at Work: Ensure that each and every


individual is treated equally and that individuals are not discriminated
against the religion, disability, gender or any other personal characteristics

d. Health and Safety: Ensure that there are zero work-related deaths,
injuries, as well as ill-health

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Describe the Key Due Diligence
Considerations For Sustainability
theknowledgeacad

3. Governance

a. Anti-money Laundering (AML): Ensure that there is no implementation


of transactions to convert money that is obtained illegally into legal money.
However, an organisation may stick to the rules, which does not refer to its
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partners and suppliers adhering to AML compliance laws

b. Policies and Compliance: Ensure that an ESG policy is implemented in


the organisation and that compliance with the UN SDGs and stakeholders’
needs is monitored as well as documented

• Due diligence is an essential part of the UN Guiding Principles on Business


and Human Rights

• It is a way for organisations to proactively manage potential and actual


adverse human rights impacts with which they are involved

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Describe the Key Due Diligence
Considerations For Sustainability
theknowledgeacad

(Continued)

• Several documents may support the organisation on human rights due to


diligence assessment, execution, as well as application:
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• Working Group report on human rights due diligence to the 2018 General
Assembly (available in Arabic, English, Chinese, French, Spanish and
Russian)

o Executive Working Group report's summary on human rights due


diligence

o Companion paper I Corporate human rights due diligence: Background


note as well as elaborating on key aspects

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Describe the Key Due Diligence
Considerations For Sustainability
theknowledgeacad

(Continued)

o Companion paper II Corporate human rights due diligence: Getting started,


developing practices, tools & resources
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o References' Overview to human rights due diligence in existing State


national action plans on business & human rights

o UN Guiding Principles on Business and Human Rights

o The Corporate Responsibility to Respect: An Interpretive Guide (Office of the


UN High Commissioner for Human Rights)

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Describe the Key Due Diligence
Considerations For Sustainability
theknowledgeacad

(Continued)

• ESG due diligence is the risk management process that must be followed by
the organisation to identify, prevent, mitigate, and account for the way it
addresses ESG impacts. As an element of risk management, it includes four
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key steps:

o Assessing actual and possible environmental, social as well as


governance impacts

o Integrating and acting on the finding

o Stacking responses

o Communicating the way impacts are addressed

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Describe the Key Due Diligence
Considerations For Sustainability
theknowledgeacad

(Continued)

• The primary output of the ESG due diligence assessment is a report that
concentrates on each and every component: environmental, social, and
governance
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• It must describe any controversial or illegal behaviours and list insights into
any positive actions, like initiatives taken and any ESG-relevant awards that
have been granted to the organisation

• The report highlights actions that are important and taken by the
organisation as well as any proceedings with investors, regulators, or other
stakeholders

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theknowledgeacad
emy

Module 3: Explain the Key Concerns of


Achieving Sustainability in a Volatile,
Uncertain, and Complex Environment

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Principles-based Approach vs
Procedures-based Approach vs
Model-Based Approach
theknowledgeacad

Using Cynefin and Sense-making to Address Complexity


 From a systemic perspective, uncertainty, ambiguity, and to some extent,
volatility can be defined as the complexity's effects. The more complicated a
system is, the more uncertain, ambiguous, as well as volatile it becomes
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 An organisation can manage the other three VUCA characteristics effectively


by addressing complexity. It is not easy to work and make decisions in a
changing complexity's environment
 This is a characteristic of such systems and not a sign of a lack of skills or
experience within practitioners. A practitioner must evaluate the current
context and apply effective heuristics to deal with this challenge

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Principles-based Approach vs
Procedures-based Approach vs
Model-Based Approach
theknowledgeacad

(Continued)
 The Cynefin framework, which David Snowden initially develops is a useful
approach to improve the ability of the organisation to implement
sustainability initiatives within a modern, complicated, and unpredictable
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environment
 It offers a practical way to evaluate the complexity and determine the
actions which are appropriate and distinguishes within the five domains, or
contexts, that characterise the relationship within cause and effect as well
as the four types of constraints
 It enables the leaders and practitioners to use different perspectives, orient
themselves, select the most appropriate methods and techniques,
understand complexity, as well as effectively address problems and
opportunities

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Principles-based Approach vs
Procedures-based Approach vs
Model-Based Approach
theknowledgeacad

(Continued)
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Principles-based Approach vs
Procedures-based Approach vs
Model-Based Approach
theknowledgeacad

(Continued)
 Assessments start in a confusing environment. The stakeholders must
observe the situation and determine which of the other four environments
are applicable to that situation. Elements of the situation can be managed,
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for instance, as a complex or a clear environment


 The environment cannot be better or worse, but each and every
environment requires a different approach to sense-making is a continual
exercise, as changing conditions and events (like the challenge,
organisation, initiative and practitioner) can move a situation within
domains

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Principles-based Approach vs
Procedures-based Approach vs
Model-Based Approach
theknowledgeacad

(Continued)
 Sometimes, it could be very fast and would need a different approach. The
other key feature of Cynefin is the dynamics as well as movements between
domains
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 Depending on the context, practitioners may influence some movement by


driving the situation towards the direction which is desired. Several best
practices, like project plans, assume an ordered system (like the clear as
well as complicated domains in Cynefin) that is predictable and has a low
variation rate
 However, not all of the systems are ordered, and it can be erroneous to
assume so. This mistake would cost a series of failed attempts to anticipate
outcomes and achieve the desired outcomes

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Principles-based Approach vs
Procedures-based Approach vs
Model-Based Approach
theknowledgeacad

(Continued)
 In situations such as sustainability initiatives, this is not an acceptable risk
that requires organisational changes and subsequent stakeholder buy-in
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 If it is not in a chaotic situation, where causal relations cannot be observed,


and the focus is on prompt decisions and high communication levels), the
organisation is possible to be dealing with complicated challenges when
realising its sustainability objectives
 It refers to taking time to know the situation, the constraints in play, and
what is possible

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Principles-based Approach vs
Procedures-based Approach vs
Model-Based Approach
theknowledgeacad

Understanding and Deploying Constraints in Complex


Systems
 In the Cynefin framework, constraints are the system's characteristics and
give structure for the agents (or parts). Constraints, as utilised in this
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context, are neither good nor bad


 They are the system's characteristics and give structure for the agents.
Each and every type of system, except for chaotic systems, have different
constraints at play,Type
Domain either concerning
of constraint the boundaries
checks or controls What canor interactions
effectively set of the
system between the agents constraints?
Clear Fixed Procedures, Scripts
Complicated Governing Models
Complex Enabling Principles
Chaotic No Effective Constraints Ad Hoc Decisions

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theknowledgeacad
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Module 4: Describe the Three Dimensions


(Aspects) of Strategic Planning

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theknowledgeacad
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Module 4 (a): Sustainability Business Model

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Sustainability Business Model
theknowledgeacad

The Evolution of Sustainability Planning


 In the early 2000s, the initial focus of an organisation regarding
sustainability planning was on managing the in-house environmental
impacts, making sure the compliance with emerging environmental
regulations, and producing products and services which are environment-
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friendly
 Nowadays, businesses are trying to extend their efforts beyond the
environmental to social issues as well as their impact over the next few
years
 The actions, scope, as well as the ambition of sustainability planning,
displays a higher accountability level for mid-and long-term environmental
as well as social outcomes

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Sustainability Business Model
theknowledgeacad

(Continued)
 The evolution of sustainability planning can be defined in the following four
steps:
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Responsibility
Compliance Sustainable
Sourced Sustainable
and Local Business
Products and Ecosystem
Optimisation Models
Services

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Sustainability Business Model
theknowledgeacad

(Continued)
 The first two steps are necessary but insufficient to form a sustainable
environment for individuals and organisations. Sustainability planning that
overlooks feedback from other agents in the ecosystem is likely to
undermine the sustainability of the organisation in the mid to long term
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 Where possible, the organisation must identify, analyse, as well as optimise


the impacts of its actions on both direct as well as indirect stakeholders, and
think about the way stakeholders may react in response
 Suppose the expected response could have a major impact on the
organisation. In that case, joint planning could assist in mitigating the
expected negative effect or maximise the expected sustainability benefits
within the organisation

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Sustainability Business Model
theknowledgeacad

(Continued)
 Crucially, the involvement of stakeholders who are relevant is likely to
improve the organisation and its ecosystem's long-term sustainability
 The four steps show the sustainability planning's evolution experienced by
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several organisations, but today an organisation can begin its journey with
any of these steps
 The main focus of an organisation's sustainability objectives might be one of
the four; though, objectives from the other steps can be utilised to support
the sustainability strategy of the organisation
 Different organisations are focused on different sustainability objectives. The
transition to the next set of objectives often relies on the successful
implementation of the previous set of objectives

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Sustainability Business Model
theknowledgeacad

(Continued)
 Sustainable business models allow value creation in all sustainability’s three
pillars:
 Economic Value: Including growth, return on investments, profit,
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financial resilience, and the organisation’s long-term viability and stability


 Social Value: Including poverty alleviation, equality, social justice, well-
being, long-term employment, community development, secure as well as
meaningful livelihoods, good labour standards & practices, code of
conduct, wages, health and safety, career development, and diversity
 Environmental Value: Including the usage of resources at the rate they
can be renewed. It ensures that emissions and waste are at a level that
can be metabolised safely by the environment, protecting biodiversity as
well as creating positive benefits for the environment in order to counter
past excess
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theknowledgeacad
emy

Module 4 (b): Sustainable Products and


Services

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Sustainable Products and Services
theknowledgeacad

Designing Sustainable Products and Services


 To design and deliver sustainable products as well as services, the
organisation needs to understand its stakeholders’ concerns and explore its
product lifecycles
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 Thus, the organisation should develop as well as invest in competencies' set


beyond its traditional expertise as well as collaborate with other
organisations
 Products and services that are designed with sustainability in mind are
responsibly sourced, with a minimum environmental footprint throughout
their complete lifecycle, and contribute positively to social as well as
environmental development
 A UN specialised agency in the field of telecommunications and information
and communication technologies (ICTs), the International
Telecommunication Union (ITU), gives technical guidance on sustainability-
conscious
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4 materials. Material is used under as
licensewell as Limited.
from AXELOS bestAllpractices
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© The Knowledge Academy Ltd.
Sustainable Products and Services
theknowledgeacad

(Continued)
 Also, IT-enabled service providers can ensure their products and services'
sustainability during their full lifecycle. The following table provides
examples:
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Areas of Data Centre Operation Topics to Concentrate on Sustainability-conscious Product Development as well as
Maintenance
Data Centre Utilisation and Effective communications within different departments; resilience level as well as
Management provisioning
IT and Telecom Equipment Selection, deployment, as well as management of new and existing IT & telecom
equipment
Cooling Airflow design, free and economised cooling, cooling, cooling plant, CRAC units, reusing
waste heat
Data Centre Power Selection, deployment, as well as management of data centre power equipment
Data Centre Building The physical layout and geographic location of the building
Monitoring Energy use as well as environmental measurement, reporting, data logging
Design of Network Requirements to connect equipment in the data centre and within data centres

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Sustainable Products and Services
theknowledgeacad

(Continued)
 The ITU suggests defining metrics that are linked to the aspects, which are
the following:
 Strategic Alignment: CIOs and CTOs must ask themselves: How can we
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achieve the business objectives with less energy by thinking about


different IT design, architecture, and hardware options to accomplish
computing and network availability, reliability, and performance?
 Asset Utilisation: CIOs, CTOs, and senior data centre executives must
ask themselves: How can we increase the IT hardware assets’ fraction
that is deployed productively and completely utilised?

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Sustainable Products and Services
theknowledgeacad

(Continued)
 Energy Consumption: IT architecture, as well as capacity planning
executives and purchasing managers, must ask themselves: How can we
choose and justify buying IT hardware that delivers the most effective
computing performance per watt of power consumption at the plug?
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 Physical Structure Overhead: Facilities, as well as property decision-


makers, must ask themselves: How can we increase the useful energy
delivered to the IT hardware's power plugs for each and every unit of energy
consumed at the data centre utility meter and thereby decrease site
infrastructure ‘overhead’?

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Organisational Ecosystem
theknowledgeacad

 Long-term sustainability should think about the impact of external


stakeholders. Mutual direct influence, externalities, and unintended impact
must all be considered where possible It is required to identify the key
stakeholders, how actions may affect them, and their possible responses
 Some of the stakeholders involve the following:
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 Key Service Consumers


 Key Suppliers as well as Partners
 Key Elements of the Supply Network of the Organisation
 Key Competitors & Industry Players
 Authorities & Regulators
 Influencers as well as Social Activists
 Market and Industry Disruptors
 Communities and Social Groups

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theknowledgeacad
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Module 5: Describe the Key Elements of an


Organisational Sustainability Strategy

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Strategies for Sustainability
theknowledgeacad

 When sustainability objectives are described at the strategic level, the key
output of the ‘How do we get there?’ step is the new or updated
sustainability strategy of the organisation
 The sustainability strategy defines the way an organisation sustainably
defines as well as achieves its purpose. Usually this involves the objectives
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of the organisation related to all the three pillars of sustainability and the
actions or approaches required to achieve these objectives
 However, the sustainability strategy is usually designed as well as published
as a separate document; in reality, it is integral to the business strategy of
an organisation
 Therefore, it cannot be realised without a close integration with the other
strategic plans, like digital, product, or marketing

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Strategies for Sustainability
theknowledgeacad

(Continued)
 Generally, sustainability strategies address a few or all of the sustainability
challenges:
 Resource Optimisation
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 Minimisation of Waste and Emissions


 Business and Operational Excellence
 Corporate Citizenship and Social Sustainability
 Research and Innovation
 Sustainable Procurement, Supply chain, as well as Logistics
 A sustainability strategy must involve both the ways of working and the
products and services of the organisation

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Strategies for Sustainability
theknowledgeacad

(Continued)
 Hence, it must include the following:

 Current or target definitions as well as descriptions of a sustainable


business model
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 Strategies that support the sustainable business model

 Ways of transitioning from the current state to the specified sustainable


business model

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theknowledgeacad
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Module 6: Key Elements of Sustainability


Culture

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Values and Culture
theknowledgeacad

 The sustainability culture of the organisation is the main element of the


sustainability journey, and it is based on the shared values of the
stakeholders
 Values describe organisational culture as well as impact strategies
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 The change from a financial only to a societal, humanitarian, and


environmental oriented culture transpires at the national, international,
organisational, and personal levels
 However, this change has a different pace in distinct communities; the
common trend is clear as organisations are becoming more accountable,
which is evident in their sustainability-oriented culture

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Values and Culture
theknowledgeacad

(Continued)
 Sustainability values must be integrated into the organisational culture via:

1. Awareness, communication, as well as knowledge exchange programmes


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2. Volunteering programmes that are established and operated by the


organisation

3. Diversity and inclusivity programmes, promoting as well as developing a


sustainability-conscious workforce

4. Transparency
 Disclosure of the organisation’s sustainability status as well as progress to
each and every stakeholder

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Values and Culture
theknowledgeacad

(Continued)
 Disclosure of the essential sustainability indicators, particularly those who
are considered sensitive from the public’s perspective
 In the management of incidents that impact sustainability
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5. Openness to independent observers


 Transparency is indicated in the organisation’s approach to measurement
and reporting
 As sustainability becomes an essential part of the organisation’s culture, it
displays itself via several components that can be observed, nurtured, as
well as encouraged

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Values and Culture
theknowledgeacad

(Continued)
 The sustainability culture of an organisation can be seen as the set of
ideologies, beliefs, processes, as well as attitudes held by the people in the
organisation
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 It may emerge organically on its own, and it can be impacted by external


macro-level factors and internal business practices
 An organisation’s sustainability culture also directs the decisions of an
individual by setting and strengthening knowledge regarding what is
appreciated as well as the way in which things must be done, providing a
sense of identity to the employees like who they are, why it matters and
what they do

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Values and Culture
theknowledgeacad

(Continued)
 Even though the steps an organisation decides to take to create a
sustainability culture will differ as per the stage of its sustainability journey,
the organisation’s agility, the industry, and several other factors, a few
recommendations are likely to work for any organisation:
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 Senior management needs to play an important role in communicating as


well as demonstrating the significance sustainability plays to the business
 Build and follow rituals that are based on the organisational values, for
instance, regular sustainability risks reviews with a team, activities like
sustainability family weekends
 Design symbols of sustainability that support the sustainability vision

 Form a team of sustainability ambassadors who will assist in


implementing and developing culture at each level of the organisation
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Values and Culture
theknowledgeacad

(Continued)
 The following are the three organisational levels of the TBL pillars

Macro Level Micro Level Internal Level


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• Environmental • The organisation manifests • The organisation encourages as well as • Sustainable practices like
Pillar its environmental needs its suppliers and partners to recycling, waste
sustainability objectives contribute to the environmental management, and
that are aligned with the objectives at the national, responsible sourcing are
SDGs international, and industry levels adopted and encouraged by
the organisation. Members
• Environmental goals like • The environmental goals and practices of the organisation share
net-zero are an essential of an organisation are integrated into the sustainability values as
part of the positioning, the organisation’s work practices well as actively participate
image, and strategy of an across the organisation’s ecosystem in the sustainability
organisation initiatives
• The organisation adopts sustainable
business as well as operating models

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Values and Culture
theknowledgeacad

(Continued)
Macro Level Micro Level Internal Level
• Social Pillar • The organisation • The organisation encourages as well • The organisation recruits and
manifests its social as needs its suppliers and partners supports a diverse workforce, as
sustainability objectives to contribute to the social well as eliminates unfair work
that are aligned with objectives at the national, practices like racial or gender
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the SDGs international, and industry levels pay gaps. The organisation's
members treat each other with
• Social goals like fair • The social goals and practices of an respect. A secure and fair
trade are an essential organisation are integrated into the workspace is developed or
part of the positioning, organisation’s work practices across established across the
image, and strategy of the organisation’s ecosystem like organisation. The organisation
an organisation integrated reporting or due establishes long-term
diligence relationships with its members,
their families, as well as their
• The organisation adopts sustainable communities
business as well as operating
models

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Values and Culture
theknowledgeacad

(Continued)

Macro Level Micro Level Internal Level


• Economic Pillar • The organisation invests in • Sustainable business and operating models • The organisation invests in
long-term sustainability are adopted by the organisation development as well as the learning of
programmes like the shift to its members
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renewable energy sources • The organisation invests in professional


or reforestation development as well as education and • The organisation invests in its
supports schools and academia intellectual as well as human capital

• The organisation invests in research and • Business decisions are made having
development for understanding trends and the mid-term and long-term effects in
get prepared for the future mind

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theknowledgeacad
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Module 7: Address Sustainability in an


Organisation’s Vision

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Defining the Vision
theknowledgeacad

 Describing a vision involves more than just creating a vision statement. An


organisation needs to perform the following steps to define a sustainability
vision:
 Choose the global SDGs to focus on
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 Agree on the guiding principles of an organisation

 Choose the capital kinds to be addressed in the sustainability vision

 Consider the sustainability concepts as well as frameworks to adopt and


adapt in the organisation
 Conduct a materiality assessment for defining the organisation's areas of
focus
 Make sure the commitment to the vision

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Defining the Vision
theknowledgeacad

(Continued)
 A well-defined sustainability vision accepted by every stakeholder keep the
organisation on track, and the vision will continually remind the organisation
to maintain momentum
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 Without understanding the sustainability's value in the specific


organisation's context, there is a high risk of the sustainability initiatives
that remain in a tick-box exercise and for the proxy metrics for success
being misunderstood for actual progress and valuable outcomes
 To create a vision, the organisation needs to first make sure the alignment
between macro-level requirements, the purpose and strategy of an
organisation, and the personal values of the people concerned and then
agree on a set of principles to be followed in distinct contexts

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The Triple Bottom Line for Vision
theknowledgeacad

 When embedding sustainability into an organisation, the TBL is one of the


main concepts to consider, and it must be utilised at each and every step of
the sustainability journey
 The ‘What is the vision?’ step is not an exception. The TBL concept assists in
shifting the organisation to long-term sustainable objectives
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 The organisation must consider each pillar while defining the vision and
long-term organisational plans for sustainability
 It is also the best practice to make sure that the sustainability principle of an
organisation addresses each pillar

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The Triple Bottom Line for Vision
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(Continued)

Action: Agreeing and adopting the organisation’s guiding


principles
 Consider the sustainability guiding principles that are adopted
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internationally like those in UN Global Compact


 Select the principles that resonate with your business strategy and purpose:

 Incorporate the chosen guiding principles in the initial set of the


organisation’s principles
 Make sure that the principles address all TBL pillars

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The Triple Bottom Line for Vision
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(Continued)
 Utilise the principle statements as they are, or adapt the statements as per
the organisation’s culture. For instance:
 We respect the communities and workers in which we operate
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 We take accountability for our carbon footprint

 We communicate transparently and openly regarding our activities as


well as encourage the anti-money-laundering campaigns

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theknowledgeacad
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Unit 5: How Organisational Sustainability is


Assessed, Maintained, and Improved

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Learning Outcomes of Unit 5
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 Module 1: Describe the key concepts of measurement and reporting

 Module 2: Explain how the following support sustainability

 Innovations
 Communication and collaboration
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 Audits
 Governance
 Module 3: Explain how the following ITIL practices support sustainability:

 Organisational change management


 Strategy management
 Software development and management
 Supplier management

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theknowledgeacad
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Module 1: Key Concepts of Measurement


and Reporting

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Metrics and KPIs
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 The measurement and reporting practice guide of ITIL offers comprehensive


guidance on reporting and measurement
 Sometimes the terms ‘KPIs’ and ‘metrics’ are used with distinct meanings or
interchangeably
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 This guidance follows the definitions that are provided in the ITIL
measurement and reporting practice guide as well as applied in other ITIL
publications
 In this context, performance measures what is accomplished or delivered by
an organisation, person, system, team, service or practice

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Metrics and KPIs
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Definitions

Metric: A measurement or calculation that is monitored or reported for


management and improvement
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Indicator: A metric that is used to assess and manage something

Key Performance Indicator (KPI): An important metric used to evaluate the


success in meeting an objective

 Those who are accountable for sustainability objectives usually need


measurements and reports that are focused on efficiency, effectiveness, and
the progress of the sustainability initiatives at different levels, from
individual tasks to large programmes

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Metrics and KPIs
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(Continued)
 Measurements do not have intrinsic value, and they only become valuable
when applied in a management context
 Measurements can assist with four management tasks:
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 Influencing Behaviour: Measurable targets establish the expectations


and direction for activities. All objectives must have one or more
indicators to assess progress
 Justifying Changes: Justification is required for improvement initiatives
that can be provided by metrics that display deviations from target values
or negative trends

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Metrics and KPIs
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(Continued)
 Validating Decisions: Measurements are utilised to make sure the
completion of activities, staff are on target, and decisions result in the
expected outcomes
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 Intervening Metrics: Leading indicators, in specific, trigger corrective


actions
 Organisations should measure their resources, activities, and products and
services
 The following are the most common measurement categories:

 Performance: What does the managed object accomplish?

 Maturity: Does the object possess the abilities required to accomplish its
purpose?
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Metrics and KPIs
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(Continued)
 Compliance: Does the object adhere to internal and external
requirements?
 There following are two common methods of measurement:
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Calculations based on data from tracking and


monitoring tools

Surveys

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Metrics and KPIs
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(Continued)
 A metric is only a KPI when it is essential for assessing a state of an object

 Management distinguishes between supplementary metrics and key


information metrics
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 Indicators are considered key when defining the most significant properties
of an object or the factors that greatly impact those properties
 KPIs evaluate the state of an object in terms like acceptable or
unacceptable, good or bad
 A metric can only be utilised as a KPI if it has an agreed target value as well
as a tolerance, that is, the permissible deviation from the target value

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Metrics and KPIs
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(Continued)

Key Message
• To utilise metrics as KPIs, it is essential to:
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o Identify the key metrics


o Describe target values and trends
o Describe tolerances

 Most of the indicators that are used for the performance of an organisation
have a target trend: they must either rise or decline
 For instance, the output of greenhouse gas (GHG) emissions must decrease;
however, the percentage of renewable energy must increase over time

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Common Sustainability Metrics
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 The organisation defines specific objectives with supporting metrics and


related KPIs, but few objectives and metrics are commonly utilised. It is
good to group them around the three sustainability pillars
 The following are the examples of common objectives and related metrics
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Sustainability Pillar Objective Metrics


Environmental • Lessen GHG emissions • Total CO2 emission
• Change over the period in percentage
• Increase the usage of • Percentage of renewable energy
renewable energy
• Decrease the consumption • Total natural resources consumption
of natural resources • Percentage of natural resources in the products of the
organisation
• Percentage of renewable resources in the products of an
organisation

• Decrease waste and increase • Recycled resources percentage in the organisation’s products
the usage of the circular • Percentage of reused resources in the products of an
economy organisation
• Total landfill waste that the organisation produces

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Common Sustainability Metrics
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(Continued)

Sustainability Pillar Objective Metrics


Social • Ensure good working • Employee satisfaction
conditions • Turnover: average duration of employment, percentage of staff
turnover during the period
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• Employee Net Promoter Score (eNPS)


• Number of safety incidents

• Respect the human rights of all • Number of incidents


• Audit results
• Participate at the community • Cost and number of community development programmes
level

• Ensure equal opportunities • Diversity


and diversity for everyone • Zero pay gap between the several employee demographic groups

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Common Sustainability Metrics
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(Continued)

Sustainability Pillar Objective Metrics


Economic • Ensure zero corruption • Number of incidents
• Compliance with anti-corruption best practices
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• Increase the revenue from • Revenue generated from sustainability projects


sustainable initiatives • Revenue change over the period
• Increase profit by lessening the • Cost reduction by sustainability initiatives, cost (value) and
cost of resource percentage
• Profit increase achieved through sustainability initiatives, cost and
percentage

• Ensure zero litigation expenses • Sustainability-related fines over a period, cost


• Change over the period

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Common Sustainability Metrics
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(Continued)
 Although goals, metrics, and KPIs differ from organisation to organisation,
there are commonly arising problems about measuring and reporting
sustainability that appear in all three pillars
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 Environmental metrics are challenging to describe and measure for several


reasons, involving:
 There is a lack of measurement instruments and sensors; the organisation
may depend on using nominal values instead of actual values
 The capability of measuring end-to-end metrics in the supply chain needs
close cooperation and adequate abilities across each section of the chain

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Common Sustainability Metrics
theknowledgeacad

(Continued)
 If end-to-end data is not available, decisions can be made on the basis of
fragmented as well as misleading information
 Because of the unintended effects, ignorance of the whole picture, and
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unknown externalities, the environmental impact can sometimes be


unknown
 Social metrics can also present difficulties, for instance:

 They largely rely on subjective, sometimes biased opinions instead of


objectively measured data
 They usually focus on actions instead of results, as results can be long
term or difficult to measure

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Common Sustainability Metrics
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(Continued)
 They rely on the social context: due to a distinct cultural, social and legal
context, what is a breakthrough in one organisation may be considered a
decline in another
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 Like environmental metrics, measuring end-to-end social metrics needs


cooperation and abilities from each supply chain section
 Specific aspects of the sustainability initiatives may provide benefit to some
stakeholders while disadvantaging others

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Common Sustainability Metrics
theknowledgeacad

(Continued)
 Finally, financial metrics also need certain considerations, as the total costs,
as well as benefits of sustainability, are usually difficult to calculate. For
instance,
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 The products and services lifecycle's costs can sometimes be on the basis
of estimates or assumptions because of supply chain intellectual property
requirements
 The advantages of sustainability can be easier to articulate in the long
term
 It is not always practicable to affirm the causation or even correlation
between the sustainability initiatives and benefits
 Several sustainability benefits are not monetary but can impact financial
results indirectly
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Common Sustainability Metrics
theknowledgeacad

(Continued)
 Few guidance on overcoming these and other challenges can be found in
the Integrated Reporting Framework model as well as other international
best practices for IT sustainability measurement and reporting, involving the
ITU guidelines for sustainable ICT in corporate organisations
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 The following are the examples of environmental metrics recommended by


ITU for IT services

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Common Sustainability Metrics
theknowledgeacad

(Continued)
 The following are the examples of environmental metrics recommended by
ITU for IT services
Digital Technology Metrics Examples
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Data Centres Power Usage Effectiveness (PUE)


Carbon Usage Effectiveness (CUE)
Water Usage Effectiveness (WUE)
IT Equipment Utilisation (ITEU)
Green Energy Coefficient (GEC)
IT Equipment Energy Efficiency (ITEE)
Data Centre Performance Per Energy (DPPE)

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Common Sustainability Metrics
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(Continued)Digital Technology Metrics Examples

Desktop Infrastructure • Power draw when active, measured in watts


• Power draw when off but connected to a power outlet
• Power draw in low power
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Mobile Networks • Mobile network energy consumption per mobile


connection
• Mobile network energy consumption per cell site
• Mobile network energy consumption per unit mobile traffic
• Mobile network energy consumption per unit mobile
revenue

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Module 2: Explain How the Following


Support Sustainability

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Innovations
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 Sustainability can benefit from innovation, and organisations should look for
innovation opportunities throughout the sustainability initiatives
 Therefore, this should not be done as a tick-box exercise. The capability to
innovate is something that sets an organisation, if not most, in its industry
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 Innovation needs an appropriate and safe environment in which to fail

 Sometimes, there is no option but to innovate, for instance, when prior


understanding and working methods no longer work
 These situations are rare, but when they occur, they must initiate innovation

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Innovations
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(Continued)
 Mostly, the organisations have a limited budget for innovation, and there is
usually pressure to cut costs
 Cost-cutting can lead to good innovation, but a lot depends on the high-level
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objectives: if success is measured only in numbers, there is a high risk of


‘improvements which are unsustainable’
 However, an organisation focusing on sustainability should exercise due
diligence: do the supply partner’s business ethos, as well as practices,
match the organisation?

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Communication and Collaboration
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Communication
 Both struggling and successful sustainability initiatives need
communication. Messages like ‘It can be done!’ can assist in building
momentum as well as gaining or maintaining stakeholder support. The
individuals involved must be properly recognised
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 Sustainability goals are usually long term. This is another reason to progress
iteratively, with attainable as well as realistic milestones: these
accomplishments can be celebrated and assist in keeping momentum
 An efficient means of maintaining motivation is to utilise real-time
dashboards to represent progress and the milestones accomplished
 Distinct stakeholders will be interested in different information that must be
considered while designing the dashboards

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Communication and Collaboration
theknowledgeacad

(Continued)
 At the same time, the milestones' celebration must not distract the
organisation from moving forward. It is required to acknowledge success as
well as the hard work which has gone into it, but the future holds various
unknowns, and past success is just a moderate-strength indicator of the
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upcoming success
 It is useful to create dashboards comparing the different teams,
departments, or subsidiaries' results for a healthy competitive spirit, but this
requires feeling motivational
 When the progress of organisation's different parts is measured individually,
the impact on the measured outcomes must be controlled and not need to
create conflict in the organisation

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Communication and Collaboration
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(Continued)
 Therefore, this is necessary to communicate success and deviation from the
plans. Three recommendations to follow from the beginning of the journey
to ensure that it is not too difficult:
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 First, avoid positioning wishful thinking as project plans. Several


unknowns on this journey and the detailed planning horizon can be
relatively short. Do not over-promise, keep the estimates realistic, and
concentrate on the outcomes which are expected (instead of detailed pre-
planned outputs) to make it easier to understand and explain the
deviation from plans

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Communication and Collaboration
theknowledgeacad

(Continued)
 Second, it is important to communicate the initiative's nature to the
stakeholders in a way that assists in managing their expectations and helps
them in understanding the sustainability journey's complex nature. A
specific amount of trust is usually required at the beginning, which is why
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the investment requirements or risks must not be so high as to frighten


stakeholders
 Third, begin small. The vision and high-level objectives can be too
ambitious, but the first steps must not have a high risk of failure. Start
small, assure the stakeholders, demonstrate value, win over sceptics, as
well as communicate effectively. Gain momentum, and only then will it be
possible to focus on keeping it

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Communication and Collaboration
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Continual Feedback
 As the sustainability initiatives progress, individuals will be willing to give
feedback, including feedback from the actively participating individuals and
those affected by the initiatives. They might confirm or deny the hypothesis,
recommend improvements, or express emotions
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 It is necessary to ensure that they have convenient channels as well as clear


procedures to share their thoughts and feelings and that the feedback is
processed, captured, and considered
 In many cases, it is also necessary to acknowledge the feedback as well as
respond in a relevant and informative way. As emphasised by this guide,
organisations require constant feedback mechanisms working at each and
every level, from strategic to tactical to operational

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Communication and Collaboration
theknowledgeacad

(Continued)
 Several moving parts, so much independent as well as interdependent
agents, both known and unknown constraints, and situations under and
outside the control of the organisation
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 It is necessary to understand the way things are going at any point in time,
as not only does this give a picture of what is there, but also provides
triggers for corrective actions where needed

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Communication and Collaboration
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Collaboration
 All sustainability initiatives need extensive collaboration, as they cannot
succeed in isolation. The sustainability journey can be successful if this is a
joint effort
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1. The Role of Sponsors


 Sponsors are a type of stakeholder, and though they are not the biggest in
numbers, their effect is significant, and this is not enough for them to sign
off on the initiative and let it flow
 They must be engaged during and keep the initiative on their radar. If
stakeholders outside the organisation sponsor the initiatives, it is crucial to
give them regular, relevant, as well as honest updates regarding the
initiative’s status

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Communication and Collaboration
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2. External Pressure
 External pressure from industry bodies, customers, vendors, and others can
provide powerful support for change. Sometimes this can come in the form
of requirements (such as when it comes to standards or contract details),
and in other cases, the pressure can be indirect
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 Risks, as well as opportunities, originate from several areas across


sustainability's three pillars (environmental, social, and governance).
External pressure typically comes as a result of changes in preferences of
the citizens and should be monitored as well as addressed

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Communication and Collaboration
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3. Training
 Do not assume that all the individuals have the same level of understanding
or investment in sustainability as those leading the initiatives in an
organisation
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 It is required to arrange further training that will enhance skill and


awareness, and show relevancy and the initiative's practical importance
 It must be held in an easy format to relate to the context of the organisation
and delivered in the most suitable way for the stakeholders. Like the
sustainability initiatives, the training must not be the initiative leaders'
isolated effort
 The strength of any sustainability initiative in a complex environment is
related to the system's diversity, for instance, different viewpoints,
approaches, as well as beliefs

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Communication and Collaboration
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(Continued)
 It should not make everyone share a similar opinion on the topic. Without
this education as well as training, resistance may happen. The following are
solutions that can be helpful:
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 Give information that is relevant

 Ensure the format meets the requirements of the stakeholders

 Attempt to arrange different learning opportunities

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Communication and Collaboration
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4. Incentives
 Suppose employees agree with the initiative’s objectives but act contrary to
those objectives. Then, it is necessary to think about the incentives in place
 Situations where teams work with each other but have conflicting incentives
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are very common. This is challenging to foster collaboration when the roles
of the colleagues involve different priorities that may conflict
 Be proactive; it is necessary to include reviewing and analysing incentives
as a continuous part of the initiative. In large organisations, objectives can
be reviewed as frequently as monthly

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Communication and Collaboration
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(Continued)
 Some organisations may prefer bi-annual or annual reviews. Manage the
pace of the review cycle of the organisation, making sustainability a part of
the plan
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 In addition to helping with the sustainability initiative, any conflict found in


teams’ incentives will be an important opportunity to improve for the entire
organisation
 The most rapid impact will be increased efficiencies, but long-term effects
will have an effect on job satisfaction of the employees and, ultimately,
customer satisfaction

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Communication and Collaboration
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5. Role Changes
 Usually, the sustainability journey has an impact on the way the
organisation works. Likely, the roles and responsibilities of people will also
change
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 Some of the common well-meant examples of ‘dangerous’ changes are


cost-cutting, knowledge management initiatives and efficiency increases
where individuals may feel their jobs are at risk
 This is why the question ‘What’s in it for me?’ has several sides and covers
the benefits and risks. Rumours may increase when people feel worried and
do not have the information to answer the questions

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Communication and Collaboration
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(Continued)
 Avoid situations like this by being transparent as well as honest. This is not
always possible to prevent concerns during uncertainty but can be mitigated
 Listen to people as well as their concerns. If the role of an individual is likely
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to change, address that prior to confusion arising. Involve individuals in


discussions and decision-making for areas that impact their roles, role
objectives, delivery and success measurements, and their position directly
in the entire value chain

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Governance and Audit
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 Establishing and maintaining efficient sustainability governance is required


to drive the organisation’s sustainability model
 An organisation’s governing body evaluates, directs, and monitors the
standard constant operations of the organisation and the improvement of
the agreed transformations
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 To ensure that the organisation attains its sustainability objectives, the


governing body should:
 Involve sustainability in the governance agenda

 Delegate adequate authority and approve adequate resources to promote


the sustainability initiatives
 Create a short review cycle to address deviations and new factors

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Governance and Audit
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(Continued)
 Emphasise on the accomplishment of the expected outcomes more than on
outputs and progress
 Adjust for complexity
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 Obtain independent assurance

Definition: Audit
A systematic and independent examination to determine whether the
organisation’s sustainability activities and related results comply with applicable
regulations and with planned arrangements, and whether these regulations and
arrangements are implemented effectively and contribute to achieving objectives.

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Governance and Audit
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(Continued)
 For highlighting areas for improvement, audits allow organisations to verify
their own measurements and reports and independently confirm their status
and progress to external stakeholders
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 An audit can be performed by an external auditor or an internal team;


generally, the internal audit emulates the method used by external auditors
to make sure that the organisation maintains its sustainability
 It can assist in preparing the organisation for an external audit

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Governance and Audit
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Examples of Sustainability-Related Audits

Scope/Subject of Audit Examples Recommendations for


practitioners
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Compliance with EU Directive on • Ensure support from


mandatory regulations sustainability reporting the internal audit
team
• Obtain formal training
(and certification
where applicable) in
the subject of the
audit

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Governance and Audit
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(Continued)
Scope/Subject of Audit Examples Recommendations for practitioners
Conformance with voluntary • ISO standards for sustainability • Understand the scope and the
standards, including internally • Organisation’s internal standards, requirements of the regulation
developed like Harvard University Sustainable IT • Understand what evidence is
standard required by the auditors and ensure
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it is available, up to date, and


sufficient
• Plan and conduct internal audits in
preparation for the external ones
• Understand the purpose and end
goal of the regulation; where
relevant, consider going beyond
compliance by developing respective
capabilities
• Celebrate internally and
demonstrate the achievement to the
relevant external audience

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Governance and Audit
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(Continued)

Scope/Subject of Audit Examples Recommendations for practitioners


Risk Assessment • Sustainability risks • Understand the purpose and the stakeholders of
• Risks to the sustainability the assessment
initiatives • Decide on the format and scope, including the
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internal or external assessors


• Where possible, follow the methods and
approaches adopted as part of the organisation’s
risk management practice
• If an external assessor’s teams are involved,
ensure alignment of terminology and approaches
• Consider risks to the organisation’s sustainability
and risks to specific sustainability initiatives
• Integrate the results of the assessment into the
ongoing risk management activities of the
organisation. Ensure that the recommended risk
treatment is consistently implemented

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Module 3: ITIL Practices Supporting


Sustainability

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Organisational Change
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ITIL Practices Supporting the Sustainability of the


Management
Organisations and People Dimension
 ITIL 4 defines various management practices that focus particularly on the
dimensions of the organisations and individuals: organisational change
management (OCM), workforce and talent management, relationship
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management, as well as knowledge management


 The ITIL recommendations in these areas can be utilised jointly with other
sources of good practice or serve as a beginning point on the organisation’s
journey for adopting a sustainability culture as well as work practices
 If an organisation requires to significantly change its organisational
structure, culture, or work practices or adopt and attain sustainability
objectives, it must consider a structured approach to the organisational
change

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Organisational Change
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Organisational Change Management


Management
Key Message
• The OCM practice aims to make sure that the changes within an organisation are successfully
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and smoothly implemented. Furthermore, it makes sure that lasting advantages are
accomplished by managing the human aspects of the changes

 OCM aims to build a value-driven environment as well as allow successful


organisational changes of the necessary scope
 Every stakeholder must adopt new ways of working, as per the
organisational vision and requirement

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(Continued)
Management
 Furthermore, they must minimise risks and the possible negative impacts of
any change to the quality of services, consumer experience as well as
products
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 This is accomplished by recognising and understanding the expectations


and values of the stakeholders, having the vision, co-creating plans and
actions, communicating efficiently, empowering employees, as well as
anchoring a new cultural approach

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Organisational Change
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(Continued)
Management
 The following are the principles that can guide successful organisational
changes by designing an adaptive environment. Leaders in an organisation
must translate these principles to suit the particular needs of their business
if they want to accomplish the target of their change:
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 Clear and Relevant Objectives: The goals of the change should be on


the basis of the vision as well as the values of the organisation and must
be clear for the stakeholders. The change needs to be of real value
 Strong and Committed Leadership: Leadership capabilities are
utilised anywhere within the organisation by the well-designed process.
Anyone can lead or contribute to a change initiative at any stage. The
possible dynamic and complex nature of a change or transformation must
be considered, and the leadership must be flexible and open instead of
fixed. This practice must create an environment where individuals may
participate in change leadership as a shared practice
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Organisational Change
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(Continued)
Management
 Willing and Prepared Participants: The strengths of employees must be
the primary focus
 For organisational improvement, organisations must shift from overcoming
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employees’ resistance to encouraging as well as supporting human


intellectual capital:

1. Change stakeholders are valuable change agents, and they can make
important contributions to an organisational transformation

2. Individuals are natural problem solvers having a unique capability to adapt


to a constantly developing environment

3. Within the human-centred design of the OCM process, the requirements, as


well as the values of the stakeholders, must be understood

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Organisational Change
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4. The values of the stakeholders and organisation must be mapped to the


change targets Management
5. A change must be on the basis of intrinsic motivation instead of extrinsic
reinforcement, competency, embracing autonomy, and relatedness
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 Sustained Improvement: For an organisational change, keep the co-


creation as the central approach. Hence, each area of an organisation needs
to be open for improvement and feedback. Co-creation is an option that
joins the different parties for producing a mutually valued outcome. For
maintaining the attained good results for organisational change, systems
must constantly evolve, relying on organisational vision and needs

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Organisational Change
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(Continued)
Management
 The essential management activities of an organisational change involve:

Understanding the scope and need


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Creating a change team

Creating a change plan, vision, and quick wins

Communicating change

Leading the change, enabling operation

Anchoring a new state of the system

Sustaining the system

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Organisational Change
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Relationship Management
Management
Key Message
The relationship management practice aims to establish as well as foster the links
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between the organisation and its stakeholders at tactical as well as strategic levels. It
incorporates the analysis, identification, monitoring, and continuous improvement of
relationships with and between stakeholders

 Relationship management is a critically important practice for the people


aspect of a sustainability journey
 It is focused on assuring a successful relationship within an organisation and
between an organisation and external parties, which involves customers,
partners, users, suppliers, and others

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Organisational Change
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(Continued)
Management
 To make this feasible, the practice focuses on establishing a common
approach to relationships and relationship management that can be adopted
as well as followed across the organisation. This approach is an essential
component of an organisation’s culture
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 In the organisation’s cultural context, the relationship management practice


may involve:

Shared or No-blame Transparent Conflict


Mutually Collaboration Constant and Open Prevention
Recognised and Learning Communicati and
Objectives Cooperation ons Mediation

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Organisational Change
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(Continued)
Management
 ITIL suggests describing as well as maintaining the relationship models that
are to be utilised with distinct stakeholder groups
 A relationship model involves: a given level of commonality, the essential
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activities, the relationship journey steps, accountabilities, risks,


opportunities at each step of the journey, and suggested behaviour patterns
 The usage of relationship models assists practitioners in addressing each
group of stakeholders properly and in an agreed consistent way

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Organisational Change
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(Continued)
Management
 The relationship management process will include the following activities
once the relationship models are agreed upon:
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Identify Stakeholders and Relationship Model

Verify and Adjust the Relationship Model to the Situation

Follow the Relationship Model

Manage Exceptions

Review the Relationship

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Knowledge Management
Management
Key Message
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The knowledge management practice aims to maintain and enhance the


efficient, effective, and convenient usage of knowledge and information
across the organisation

 Sustainability culture is mainly on the basis of knowledge, i.e. the


knowledge regarding the sustainability challenges that are faced by
humanity; knowledge of the sustainability objectives and vision of the
organisation; and knowledge of sustainable work practices that are adopted
by as well as available to the organisation

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Organisational Change
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(Continued)
Management
 The knowledge management practice efficiently captures, manages, and
shares knowledge across the organisation and its ecosystem
 The aim of this practice is to provide the correct information to the right
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individuals at the right moment to build an evolutionary environment where:


 Absorptive capability is continuously improved

 Individuals are keen to learn new knowledge, unlearn old knowledge, as


well as share and gain their experience and insights
 Decision-making capabilities are improved

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Organisational Change
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(Continued)
Management
 An adaptive change culture exists

 Performance enhances, supporting the organisational strategy


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 Insight-driven and data-driven approaches are utilised throughout the


organisation
 This is accomplished by establishing systematic and integrated processes
for knowledge asset management, making a high interoperability knowledge
environment, as well as empowering individuals to develop and share
knowledge
 This involves knowing and utilising modern technologies, using information,
data, and knowledge management methods, and utilising approaches for
training and mentoring as per the organisational needs and vision

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Organisational Change
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(Continued)
Management
 Organisations must constantly develop their absorptive capacity via creating
as well as utilising new knowledge for providing informational support for
innovations and adaptive change culture
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 The SECI model (Socialisation, Externalisation, Combination, and


Internalisation) model of the knowledge dimension is utilised for this
purpose. This model was developed by Ikujiro Nonaka and refined by
Hirotaka Takeuchi
 It is utilised to explain knowledge-sharing and the transformation process at
any level of an organisation

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Organisational Change
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(Continued)
Management
 The model is based on the following types of knowledge:

 Explicit Knowledge: This can be transferred to others, assessed, codified,


verbalised, and stored. It involves information from databases, books,
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descriptions, and so on
 Tacit Knowledge: It is challenging to transfer to others and difficult to
codify, express, as well as assess. It is on the basis of experience,
capabilities, values, and skills
 It also considers the following dimensions for knowledge creation:

 The transfer of knowledge from an individual to groups or organisations

 The conversion of tacit knowledge to explicit knowledge, and vice versa

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(Continued)
Management
 The following are the ways in which knowledge is combined, transferred,
accepted, and shared
Knowledge Sharing Description Example
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Type

• Socialisation (tacit • Face-to-face sharing of • A person shares their practice of


to tacit) knowledge or via utilising reusable cups and cutlery
experiences like meetings, for work lunches with a co-worker
coaching, and so on at the office

• Externalisation (tacit • Explaining the experience • An individual defines their


to explicit) or formulating the sustainable practice in the
guidelines and process organisation’s CSR database for
encouraging their peers to follow
the example

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(Continued)
Management
Knowledge Sharing Type Description Example

• Combination (explicit to • Combining, analysing, as well • The practice of using reusable cups and
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explicit) as presenting data from outside cutlery is encouraged by the organisation


and inside an organisation to • A catering supplier suggests that their
form new knowledge customers only order cutlery if they
require it, making the ‘no cutlery’ option
the default

• Internalisation (explicit • A person develops their • An individual adopts the suggestions of


to tacit) knowledge independently or the supplier and the organisation and
via formal training develops a convenient routine to make
• The development of knowledge sure that they always have their own cup
is transformed into and cutlery ready and clean when
organisational knowledge required
assets

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(Continued)
Management
 To efficiently manage knowledge across the organisation and its ecosystem,
ITIL suggests:
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Establishing and maintaining the knowledge management


environment

Identifying as well as managing knowledge assets

Performing on-demand information discovery

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Organisational Change
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Workforce and Talent Management


Management

Key Message
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Workforce and talent management practice aim to make sure that the organisation has the right people,
with the relevant knowledge and skills, in the right roles to support its business goals. This practise covers
a broad set of activities that are focused on successfully engaging with the organisation’s employees as
well as people resources, involving planning, onboarding, recruitment, learning and development,
succession planning and performance measurement

 Competencies and motivation of the individuals across the organisation and


its ecosystem are essential components when a sustainability culture is
considered. For improving these, ITIL gives guidance on the workforce as
well as talent management practice

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(Continued)
Management
 In today’s VUCA environment, efficient workforce and talent management
cannot be on the basis of a fixed set of procedures and rules, rigid
organisational structures, and predefined sets of competencies; to be
efficient, it must rather be based on the following premises:
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 Organisations are open systems, and their relationships with other


systems cannot be ignored
 HR strategy continuously evolves along with the organisation strategy

 Digital technologies change the way of working of an organisation and the


skills that are required by an organisation

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(Continued)
Management
 Decisions must be driven by principles, not by the rules

 Organisations must recognise as well as embrace complications and


complexity-driven heuristics
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 The management practices and organisational structure must enable


organisational adaptability, agility, and efficiency
 Workforce and talent management is the accountability of all the teams,
managers, and leaders in the organisation, not only HR professionals

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(Continued)
Management
 The following table displays the elements of the 7-S model supported by the
workforce and talent management practice
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Element of the 7-S model Role of the workforce and talent management practice applied to
sustainability
• Shared Values • To make sure that all the individuals in the organisation know and shares the
same sustainability objectives, guiding principles, and values

• Strategy • To make sure that a common approach to sustainability, aligned with the
overall strategy of the organisation
• Structure • To establish and continuously enhance the organisational structure that
supports the sustainability strategy and objectives of the organisation
• To establish teams or roles supporting the sustainability strategy and make
sure their efficient integration into the organisation

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(Continued)
Element of the 7-S model
Management
Role of the workforce and talent management practice applied to sustainability
• System • To adopt efficient, effective, reliable, and constantly optimised workflows and tools for the
management of the organisation’s human resources that are involved in the sustainability
initiatives
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• Style • To foster a culture that efficiently supports the sustainability guiding principles, objectives
and values of an organisation. This involves the employees’ and leaders’ style, behaviour
and values
• Staff • To make sure that there are enough of the right employees within the organisation for the
sustainability initiatives to be effective and that their performance and workload are
adequate. Human resources must support sustainability. The practice also makes sure that
people are treated responsibly by the organisation and its partners, and human rights are
never compromised

• Skills • To make sure that the individuals in the organisation are qualified for their sustainability-
related jobs, have the appropriate expertise and skillsets, and are capable enough to be
competent to support the current and future requirements, objectives, and initiatives of an
organisation

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Strategy Management
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ITIL Practices Supporting the Sustainability of the Value


Streams and Processes Dimension
 The following are the practices that are particularly valuable for an
organisation seeking to improve its value streams as well as processes for
the sustainability journey:
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 Strategy Management

 Risk Management

 Project Management

 Measurement and Reporting

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Strategy Management
 The strategy management practice ensures that the sustainability values
and objectives are translated into a viable strategy, and the organisation
follows the strategy
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 It assists the organisations in order to:

 Agree as well as communicate a sustainability vision

 Communicate and agree on strategic sustainability objectives

 Develop, agree, discuss, and communicate the strategic sustainability


plan(s) supporting the objectives which are agreed
 Manage the sustainability vision, plans, and objectives as up to date and
relevant

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Strategy Management
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(Continued)
 The practice is key at the ‘What is the vision?’ and ‘Where are we now?’
steps, especially at the ‘Where do we want to be?’ and ‘How do we get
there?’ continual improvement journey’s steps
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 Though in an environment that is constantly changing, strategy


management is not a one-off exercise but a continual activity and remains
necessary at the ‘Take action’ step and the following steps as well
Key Message

The main purpose of the strategy management practice is to formulate the organisation’s goals and
adopt the action as well as allocation of resources required to accomplish the goals. Strategy
management establishes the direction, focuses the effort of the organisation and defines or clarifies
the organisation’s priorities, and gives consistency or guidance in response to the environment

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Strategy Management
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(Continued)
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Risk Management
 In a VUCA environment, dealing with uncertainty is a significant task as well
as an important organisational capability
 The risk management practice assures that sustainability initiatives succeed
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despite numerous and constantly changing risks influencing the organisation


 Risk management practice assists the organisation to:

 Identify and evaluate sustainability risks at the ‘Where are we now?’ step

 Identify and assess risk to sustainability initiatives at the ‘How do we get


there?’ step

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(Continued)
 Address the risks that are identified at the ‘Take action’ step (optimise
responses as well as minimise negative impact)
 Add the sustainability perspective within the risk assessment and
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management of all the organisation’s work aspects, thus supporting the


sustainability mindset's development

Key Message

The main purpose of the risk management practice is to ensure that the organisation
knows and handles risks effectively. Managing risk is necessary to ensure the
continued sustainability of an organisation and co-creating value for its customers

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(Continued)
 Risk management is performed at all the organisation's levels. Strategic risk
management thinks about long-term risks that may influence the
organisation's ability to perform its mission
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 Programme and project risk management considers risks that may impact
medium-term goals as well as objectives. Operational risk management is
concentrated on short-term goals and objectives
 At each of these levels, risk management should be based on direction from
the organisation's governors

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(Continued)

Definition: Risk
It could be a possible event that could harm or lose or make achieving objectives more difficult. It
can also be defined as the uncertainty of outcome and can be used in the context of measuring
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the positive outcomes as well as negative outcomes' probability

 It is also necessary to identify as well as manage risks that are not


sustainability-specific yet may influence the sustainability initiatives of the
organisation. These involve common risks affecting the initiatives'
resources, budget, and timeline; risks that are associated with the
stakeholders, and others
 As several sustainability initiatives are managed as projects or programmes,
risk management is usually performed in the context of and as the project
and programme management's part. ITIL supports this with the project
management
Based practice
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Project Management
 Particularly, this practice is necessary at the ‘How do we get there?’ and
‘Take action steps of the sustainability journey of an organisation
 A well-developed project and programme, management practice assists
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organisations to:
 Make realistic plans and adjust them as situations change

 Manage resources, quality, risks, and progress

 Capture, share, analyse, and use lessons from the past and ongoing
projects & programmes
 Integrate the sustainability perspective within all projects and
programmes the organisation performs

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(Continued)
 This practice makes sustainability initiatives happen and assists to include
sustainability in all the initiatives across the organisation
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Key Message
The main purpose of the programme as well as project management practice(s) is to
ensure that all the projects in the organisation are delivered and contribute successfully
to the creation of value for organisation and its programmes' stakeholders

 Programme and project management play an integral part in planning as


well as introducing changes to an organisation while optimising the use of
resources, linking changes to accomplish the expected value, and
accounting for risks

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(Continued)
 A programme may be include projects over different organisation's areas.
For instance, the launch of a new product or service may depend on projects
running in the sales, distribution, marketing, and IT departments, all of
which are focused on delivering the outcome needed by the programme
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 A programme can be standalone, but usually, it forms part of a portfolio. The


sustainability portfolio of the organisation may refer to the collection of all
initiatives that are formally conducted and designed to achieve the
organisation’s sustainability objectives
 Usually, a project focuses on delivering a specific output, whereas a
programme focuses on the outcomes and benefits of enabling value for the
organisation and other stakeholders. Usually, programmes last longer than
individual projects

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(Continued)

Key Message
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In the sustainability context, the outcomes which are desired can usually only be achieved by a
programme; individual projects may contribute to these outcomes but are not enough without the
others
For instance, objectives related to waste management may require changes in the recyclable waste's
collection and waste processing and in the manufacturing utilising recycled materials
None of these initiatives is sufficient to accomplish the goal independently; all of them are needed. It
refers to means, among other things, that financial justification for each project should be
conducted in the programme and its objectives' context

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(Continued)
 The programmes, as well as projects, are distinguished from continuous
operations (which are usually called business as usual) as they:
 Introduce major changes
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 Are temporary structures


 Bring risks as well as opportunities above and beyond the business as
usual's normality
 These characteristics apply to several sustainability initiatives. Their
chances for success can be improved significantly if they are run using the
project and programme management practice and led by the project and
programme managers who are qualified

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Strategy Management
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Measurement and Reporting


 It is important to monitor its KPIs to ensure that the value streams and
processes of the organisation, involving those supporting the sustainability
objectives, are changed as well as performed effectively
emy

 Metrics and reports are utilised to evaluate and enhance both the processes'
change effectiveness and ongoing performance

Key Message

The main purpose of the measurement as well as reporting practice is to support good decision-making and
continual improvement by reducing the uncertainty levels. This is accomplished by gathering data that is
relevant on different managed objects and assessing this data in a proper context. Managed objects involve,
but are not restricted to, practices and value chain activities, products and services, suppliers and partners,
teams and individuals and the organisation as a whole

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Architecture Management
Management
Key Message
The main purpose of the architecture management practice is to clarify the various elements that form an
organisation. This practice clarifies the way the elements interrelate to allow the organisation to achieve its
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current and future objectives effectively


It gives the principles, standards, as well as tools that enable an organisation in order to manage complex
change in a structured and agile way

 Comprehensive architecture management practice applies to each level of


an organisation’s architecture, including:
 Business Architecture
 Product and Service Architecture

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(Continued)
Management
 Information Systems architecture, including data as well as applications
architecture
 Technology Architecture
 Environmental Architecture
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 The architecture management practice must define the service value


system and resources of the organisation for all the service management's
four dimensions, which are:
 Organisations and People
 Information and Technology
 Processes and Value Streams
 Partners and Suppliers

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(Continued)
Management
 From the sustainability perspective, the architecture management practice
ensures that:
 The current architecture of an organisation is understood and mapped to
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the organisation’s sustainability strategy (mostly at the ‘Where are we


now?’ step)
 The architecture of the target organisation is identified and agreed, as
well as supports the sustainability strategy (at the ‘Where do we want to
be?’ and ‘How do we get there?’ steps)
 The architecture of the organisation is constantly optimised to accomplish
the target architecture and constantly aligned to the developing
sustainability objectives

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(Continued)
Management
 From the sustainability perspective, the architecture management practice
ensures that:
 The current architecture of an organisation is understood and mapped to
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the organisation’s sustainability strategy (mostly at the ‘Where are we


now?’ step)
 The architecture of the target organisation is identified and agreed, as
well as supports the sustainability strategy (at the ‘Where do we want to
be?’ and ‘How do we get there?’ steps)
 The architecture of the organisation is constantly optimised to accomplish
the target architecture and constantly aligned to the developing
sustainability objectives

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(Continued)
Management
Information
Value Streams Organisations Partners and
and
and Processes and People Suppliers
Technology
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Environment

Business

Products and Services

IT Systems

Infrastructure

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(Continued)
Management
 In order to meet these objectives, architects analyse the organisation and
define its current architecture. Then, the architecture is assessed to identify
optimisation points that currently are or could become obstacles for the
strategy realisation of the organisation
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 Then, the target architecture is defined to resolve these obstacles. This


practice enables the organisation to develop from its current architecture to
the desired architecture and enables ongoing course corrections as its
strategy and environment change
 As an integral topic, sustainability in all these activities is necessary for the
success of the sustainability strategy of the organisation

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Business Analysis
Management
Key Message
The business analysis practice aims to analyse a component or the entirety of a business, define its
requirements, and suggest solutions to address these requirements or solve a business problem
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The solutions must facilitate value creation for the stakeholders. Business analysis enables an
organisation to interact with its needs in a meaningful way and express the rationale for change
This practice allows an organisation to design as well as define solutions that enable value
creation in alignment with the objectives of the organisation

 The business analysis practice identifies as well as articulates the


organisation and its customers' needs. Then, this practice identifies as well
as justifies the solution required to fulfil that need

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(Continued)
Management
 This practice includes evaluating the requirements for people, products,
technology, as well as services, including the sustainability requirements
 Although the architecture management practice gives guidance and
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constraints for the organisation, business analysis ensures that all the new
and changed products and services are aligned with this framework
 The key activities of the technology solutions' analysis and identification are:

 Information's elicitation and analysis from stakeholders

 Defining solution options as well as identifying the solution which is


recommended

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Software Development and
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(Continued)
Management
 Giving support to the solution delivery teams

 Assessing the performance and value of the solution


emy

 Sustainability must be integrated into all the activities as an essential


aspect to ensure that the products and services of the organisation meet the
organisation’s sustainability strategy requirements

Based upon AXELOS® ITIL® 4 materials. Material is used under license from AXELOS Limited. All rights reserved. © The Knowledge Academy Ltd.
Software Development and
theknowledgeacad

Infrastructure and Platform Management


Management
Key Message

The primary purpose of the infrastructure as well as platform management practice is to manage
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the infrastructure and platforms utilised by an organisation


When utilised properly, this practice allows monitoring technology solutions that are available to
the organisation, including the technology as well as external service providers

 This practice assists organisations in:

 Implementing the agreed sustainable practices as well as solutions in the


infrastructure and platform products and services of the organisation

Based upon AXELOS® ITIL® 4 materials. Material is used under license from AXELOS Limited. All rights reserved. © The Knowledge Academy Ltd.
Software Development and
theknowledgeacad

(Continued)
Management
 Perform and maintain sustainable work practices, including accountable
use of resources, waste management, and others
 Ensure conformance to the agreed as well as adopted sustainability
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standards and objectives at all the infrastructure lifecycle’s stages


 The infrastructure and platform management practice ensure that the
organisation has a high-quality IT infrastructure that meets its current and
expected needs efficiently
 ‘IT infrastructure’ as a concept contains all hardware, networks, software,
and facilities needed to develop, deliver, test, monitor, manage, and support
IT services

Based upon AXELOS® ITIL® 4 materials. Material is used under license from AXELOS Limited. All rights reserved. © The Knowledge Academy Ltd.
Software Development and
theknowledgeacad

Infrastructure and Platform Management


Management
Key Message

The main purpose of software development, as well as management practice, is to ensure that
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applications meet internal as well as external stakeholder requirements in terms of functionality,


maintainability, reliability, sustainability, compliance, and audibility

 Although the list of requirements in the purpose statement does not include
sustainability in the original version of the practice guide, it should be
amended to ensure that its digital products and services align with its
sustainability strategy
 The software development and management practice focus on the
application software’s development and management

Based upon AXELOS® ITIL® 4 materials. Material is used under license from AXELOS Limited. All rights reserved. © The Knowledge Academy Ltd.
Software Development and
theknowledgeacad

(Continued)
Management
 Several principles are also applied to the software that is the infrastructure’s
part on which applications are developed as well as managed
 As software has become the key asset of any modern organisation, it is
emy

required to ensure that the software itself and all the activities that are
related meet the agreed sustainability requirements as well as support the
organisation’s sustainability objectives and public claims

Based upon AXELOS® ITIL® 4 materials. Material is used under license from AXELOS Limited. All rights reserved. © The Knowledge Academy Ltd.
Supplier Management
theknowledgeacad

Key Message
Supplier management practices aim to make sure that the suppliers of the organisation and their
performances are managed properly to support the seamless provision of quality services and products.
emy

This incorporates creating closer, more collaborative relationships with essential suppliers to uncover as
well as realise new value and lessen the risk of failure

 Supplier management makes sure that the third-party services are


effectively used
 This is done by establishing a common approach to sustainable sourcing
strategy as well as managing supplier relationships and by maintaining a
single point of control over the planned and active supplier services and
contracts

Based upon AXELOS® ITIL® 4 materials. Material is used under license from AXELOS Limited. All rights reserved. © The Knowledge Academy Ltd.
Software Development and
theknowledgeacad

(Continued)
Management
 The supplier management practice facilitates organisations to describe
strategies for the usage of partners' and suppliers' services, assess and
choose suppliers, and make sure that services fulfil or exceed agreed
service levels, the cost of the services is optimal, and related risks are
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understood and controlled


 The sustainable sourcing strategy must support the organisation’s entire
strategy and describe which of the organisation’s resources must be created
and managed internally and which may be obtained from or managed by
third parties, and to what extent
 This incorporates the sustainability requirements that suppliers must fulfil

 It also incorporates due diligence procedures, involves the human rights due
diligence

Based upon AXELOS® ITIL® 4 materials. Material is used under license from AXELOS Limited. All rights reserved. © The Knowledge Academy Ltd.
Software Development and
theknowledgeacad

(Continued)
Management
 The supplier management practice involves two processes:
emy

Managing a common approach to supplier


management

Managing supplier journeys

Based upon AXELOS® ITIL® 4 materials. Material is used under license from AXELOS Limited. All rights reserved. © The Knowledge Academy Ltd.
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