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1999 Report of the Commissioner of the Environment and Sustainable Development

Main Points

7.2 Many of the senior managers told us that while their organizations are building environmental considerations into how they do their business, the social implications of their activities are attracting increasing attention. They are being asked to respond to a wide range of issues that vary considerably across organizations. Senior managers highlighted the need to integrate values alongside hard data or scientific evidence when considering the social dimension of sustainable development.

7.3 During our interviews, senior managers consistently drew to our attention the opportunities that they see in proactively responding to such concerns. Time and again we heard from both corporate and government senior managers that achieving and maintaining competitive advantage is a key motivator and significant benefit of addressing sustainable development.

7.4 The view from the top is that building strategies, and hence organizations, that deliver economic, environmental and social value is essential to securing the future success of both corporations and government departments.

Background and other observations

7.6 The focus of the study is on the role of senior management in building a sustainable organization. We present lessons learned from senior managers in both the public and private sectors on why and how their organizations are changing in response to the challenges and opportunities that sustainable development presents.

7.7 In addition, we found that organizations are using a variety of approaches to make progress toward sustainable development. They are thinking in terms of "sustainable systems" - such as sustainable building design and construction, energy, and distribution - and situating their organizations within them. They are addressing complexity by engaging outside experts and stakeholders to work with their organizations to help them better understand the issues and their implications. They are building alliances to combine their individual efforts and promote new solutions. They are using research and education to overcome resistance to change. They are developing new tools to support decision making, education and performance measurement. And they are implementing the management systems needed to monitor actions and support continuous improvement.

Introduction

7.9 Chapter 5 looked at seven organizations recognized for their efforts in moving toward sustainable development. Our focus was on how those organizations were integrating sustainable development into their management practices. We found that they were broadening their perspectives on corporate strategy by expanding their time horizons, the field of contributors and the range of options they considered. They also applied sound management practices to strategy implementation: setting clear and measurable goals and targets; monitoring progress; and making modifications where necessary.

7.10 As in any significant organizational change, senior management plays a key and active role in developing and implementing strategy. Our case studies last year showed that chief executive officers, ministers and/or boards of directors were actively involved in designing their organizations' environmental and social strategies and guiding their implementation. They communicated the importance of the change effort clearly and consistently to both internal and external audiences. And they committed the resources necessary to achieve progress and deliver tangible benefits to their organization.

Focus of the study

7.12 The study is based on interviews with 51 executives and senior managers in 17 organizations. Eleven of the organizations are in the public sector and six are in the private sector. They were drawn from the agriculture, building design and construction, energy, health, industry and transportation sectors in North America and Europe.

7.13 The study participants are listed in Exhibit 7.2 and background information on them is presented in the Appendix . Further details on the study can be found in About the Study at the end of the chapter.

Observations

Why Organizations Are Changing

Shifting focus: From operations to the boardroom

Environmental considerations are a necessary part of decision making

7.16 Exhibit 7.3 shows global trends and related environmental impacts as presented by Electrolux in its 1997 corporate environmental report. The company sees these trends and environmental problems translated by society into regulations, a general need to limit resource consumption and increased market demand for products with reduced environmental impact. For Electrolux, these driving forces are simply part of its business context. As such, they are a stimulus to the company's strategic direction.

7.17 Senior managers in the public sector identified numerous environmental issues and specific incidents that have required public policy responses in recent years. Some of these are local, such as contaminated industrial lands, air and water pollution and food safety and quality. Others are global such as climate change. Many of the public sector organizations we met with find the pressures of growing populations, increasing resource use and the resulting environmental impacts reflected in public opinion. This has led to strong support for environmental issues and to increased demand for government action to address environmental concerns.

7.18 Improving environmental efficiency. The private sector corporations we spoke with have integrated environmental considerations into their operational decision making. They are reducing their impact on the environment and the associated costs and liabilities. They have undertaken extensive efforts to minimize waste and emissions to air, land and water, and to reduce their use of raw materials, energy and other resources.

7.19 In the public sector, the same global trends and their resulting environmental impacts are leading government managers to recognize a need to encourage and support better management of environmental resources. The departments we spoke with have taken action to:

• promote pollution prevention;
• develop programs to increase public awareness and education about environmental issues;
• use procurement programs to support environmentally preferable options;
• provide incentives for development of new, more environmentally friendly technologies; and
• provide specific guidelines and planning tools to help clients minimize their impacts on the environment.

7.21 These companies are changing their business strategies by:

• supplying products that reduce customers' operating costs;
• creating demand for products that are more environmentally efficient;
• moving from selling products to providing services with fewer environmental impacts; and
• developing new, more sustainable solutions to customer needs.

We believe that our Crop Protection products will play an important role in achieving sustainable agriculture. As the world's population is growing, its food needs are also increasing. Ploughing under more land is not the best solution from an environmental perspective. Crop Protection products help to intensify the agricultural yield on available land, as do our Seeds products. Our nutrition business is also exploring ways to increase nutritional yields.

7.24 In the public sector, environmental impacts also are acknowledged to be a major consideration in policy making. For example, the Ministry of Economic Affairs in the Netherlands recognizes the importance of integrating economic and environmental factors. As expressed in its Policy Document on Environment and Economy - Towards a Sustainable Economy , the Ministry wants to make resource use throughout the country far more efficient and to translate this into economic advantage.

The aim is to achieve an absolute decoupling of environmental pressure and economic growth, in other words to generate economic growth combined with a reduction in environmental pressure. Production, consumption and vehicle use will therefore have to be made far more efficient than they are at present.... This challenge can and must go hand-in-hand with a strengthening of the Dutch economy and job creation. Gains in environmental efficiency will then be translated into economic gains, partly due to a more efficient use of scarce resources.

7.26 The Swedish government has produced a strategy to develop a sustainable energy supply, in response mainly to public opinion. The strategy addresses the dual goals of improving energy efficiency and developing more sustainable long term-solutions. It is described in a government bill on a sustainable energy supply as follows:

A new energy policy programme is introduced to promote the transformation of the energy system. The programme includes measures aimed at, in a cost-efficient manner:

• decreasing the consumption of electricity for heating purposes,
• utilizing the existing electricity system more efficiently, and
• increasing the supply of electricity and heating from renewable energy sources....

The main direction of the energy policy programme involves energetic long-term support to research, development and demonstration of new energy technology. The object is to increase substantially, over the next ten to fifteen years, the production of electricity and heating from renewable energy sources and to develop commercially profitable technology for greater energy efficiency.

Social impacts are attracting increasing attention

• For example, senior managers at British Petroleum told us that an important area for the company is dealing with its broad social responsibilities in developing countries. The company makes significant capital investments in those countries and it wants the investments to produce a return over their economic life. It believes that a continued economic return on these assets will be easier to obtain if stable social structures are in place, but the company is struggling with the appropriate contribution to those social structures.
• At Health Canada, senior managers told us that they are exploring the relationship between population health and sustainable development. A wide range of factors are recognized to contribute to population health: income and social status, social support networks, education, employment and working conditions, social environments, physical environments, personal health practices and coping skills, healthy childhood development, biology and genetic endowment, health services, gender and culture. Health Canada is studying the interactions among these determinants to be better placed in the future to advance its work in areas that support both population health and sustainable development objectives.

7.29 Senior managers highlighted the need to integrate values alongside hard data or scientific evidence when considering the social dimension of sustainable development. According to a senior manager at J Sainsbury: "It is an issue of trust and expectations. Not just being legally compliant, not just doing what is scientifically correct, but being cognizant of societal values, your customers' values and those of others with an interest in your business, such as suppliers and local communities."

7.30 For example, British Petroleum, in its first social report, developed a set of policies that includes health, safety and environmental performance, business ethics, finance and control, employees and the company's relationships. The report also presents the work the company is doing with "people and communities where [it] operate[s] as a fundamental part of [its] contribution; an expression of belonging, but also of a wider responsibility." This wider responsibility includes being aware of the social impact of its activities; engaging positively with governments, community leaders and others to manage its impact on the basis of dialogue and partnership; and ensuring an overall beneficial impact to communities.

7.31 British Petroleum has learned that commercial success and a highly competitive performance are essential but not sufficient. "What we are learning... is that enduring success requires something more, and that the ability to make a positive contribution to society and to bring positive energy to the solution of its problems is the key to the development of genuine trust and to all the opportunities which flow from that trust."

7.32 While corporations are at a very early stage in understanding and responding to the emerging social agenda, they are clear in identifying their objectives and the anticipated benefits. Senior managers told us that they are taking the social dimension of sustainable development into account for the same reason that they consider the environmental dimension to be important: it makes good economic sense. Specific objectives include:

• building strong relationships with customers;
• responding to public pressure for greater social accountability;
• protecting corporate reputations and brand image;
• working with suppliers and contractors to ensure commitment to social values; and
• being recognized as legitimate contributors to the evolving social agenda.

7.34 Links are being drawn between environmental and social issues. Environmental and social issues are increasingly seen as interrelated. Senior managers are trying to understand the links between the quality of the physical and social environments, human well-being and community health. The types of issues that government managers are looking at include:

• promoting health, nutrition and education for individuals;
• promoting access to economic opportunity and social services for all citizens;
• maintaining the health of communities by addressing physical and social infrastructure needs, including social housing, transportation and community safety; and
• addressing social equity and human rights.

7.36 One component of this work has been the development of a strategy that would build a sustainable distribution system better able to deal with a wide range of distribution problems (see Exhibit 7.4) . In addition to the environmental and economic challenges facing the distribution system, the Department has identified social issues such as safety, health, disturbance, access and equity as core elements of its sustainable distribution strategy. (See paragraphs 7.52 and 7.53 for more information.)

7.37 Organizations are in the early stages of addressing the social dimension. The overall impression we got from our interviews is that even leading organizations are in the early stages of thinking and acting on the social dimension of sustainable development. Unlike the environmental dimension, where there is more consensus on the issues and approaches to dealing with them, the social dimension remains in its infancy; it is closer to the "coping" stage of the sustainable development journey (see Exhibit 7.1) .

7.38 However, the organizations we spoke with are drawing on the lessons learned in their journey along the environmental dimension to guide their thinking about social considerations. They are communicating more openly and engaging with stakeholders to understand their concerns and identify solutions. They are anticipating emerging challenges in order not only to minimize costs but also to maximize the benefits of early action.

Turning challenges into opportunities

7.40 Senior managers recognize the opportunities in responding proactively to these issues. These opportunities include reinventing the organization, creating new products, developing new skills, establishing new relationships and providing solutions to the challenges of sustainable development.

Seeking competitive advantage

7.42 Corporations are seeking competitive advantage by:

• adding environmental and social dimensions to their brand image;
• increasing their market share with new product and service offerings;
• attracting the best talent to their organization;
• addressing the social and environmental concerns of their stakeholders; and
• establishing a socially and environmentally responsible corporate reputation.

7.44 In the public sector, departments are looking to support competitiveness of their economies in the global marketplace. Policies and programs that encourage reductions in negative environmental impacts stimulate business to innovate. The benefit is that industries are better positioned to supply new technologies and products to satisfy growing markets for environmentally responsible goods and services.

7.45 In Denmark, policies and regulations that promote food safety and better environmental attributes have helped secure and expand export opportunities for the Danish agricultural industry. By providing tools to better manage the use of pesticides and fertilizer and to develop an organic farming industry, the Ministry of Food, Agriculture and Fisheries is helping farmers capitalize on a growing European market for food products with enhanced environmental characteristics.

How Organizations Are Changing

Situating the organization within a sustainable system

7.48 Sustainable building design and construction. The firm William McDonough + Partners told us about its efforts to build sustainable buildings. One of the firm's objectives is to design a building that will "purify the air, accrue solar income, produce more energy than it consumes, create shade and habitat, enrich soil and change with the seasons." This objective is in addition to designing buildings that address traditional bottom-line considerations such as enhancing the productivity of the buildings' occupants.

7.49 During the firm's work, a significant problem was identified. The materials needed to build a sustainable building were not available and existing materials were not designed in accordance with sustainable design principles. This encouraged the firm's founder to broaden his role in the system and form a company that designs sustainable products. The new firm, McDonough Braungart Design Chemistry, began by designing a line of fabrics that are free of toxic substances and decompose naturally. It is now receiving requests to use the design protocol for a range of applications "from molecules to transportation systems."

7.50 The firm designs according to the "cycles of the natural world, where nothing is wasted and everything old becomes food for something new." It uses three design principles that are outlined in Exhibit 7.5 .

7.51 Governments are thinking about "sustainable systems" and what their role would be in those systems. They are envisioning systems that would, to a large degree, maintain themselves, require minimum government intervention and be environmentally efficient.

7.52 Sustainable distribution. The Department of the Environment, Transport and the Regions in the United Kingdom is planning a sustainable transportation system. One component of this system is sustainable distribution. The Department is looking at how to deliver goods efficiently and with the least harm to the environment and the health of people. It has released a strategy document on sustainable distribution that examines the freight distribution system from a sustainable development perspective.

7.53 We were told the Department had changed its way of thinking about freight distribution, traditionally viewed as vehicles and movement divided by mode of transport. It is now considered an integrated component of supply chain management. The Freight Distribution and Logistics Group took a bottom-up approach to gather information from across departments on the various policies that affect freight distribution and logistics, their objectives and their effectiveness. Next, the Group took a ``big picture" approach to assess which policies were promoting an effective freight system and to identify gaps that needed to be filled. It consulted widely to learn the views of many stakeholders and developed a market failure framework to guide the analysis and consultations. Economic, social and environmental market failures were identified and used to develop a framework for a more sustainable distribution system. The objective of the framework is to provide solutions and give industry clear direction on the way ahead.

Addressing complexity

7.55 Engaging stakeholders and experts. Most executives noted the value of engaging outside experts and other stakeholders to work with their organization to help it better understand the issues and their implications.

7.56 The 1997 Health, Safety and Environment Report of Novartis presents a multi-page overview of a one-day workshop that brought together 12 internal and external experts to answer the question, "What is the role of a forward-looking Health, Safety and Environment organization in a Life Sciences Company?" One of the key topics of discussion was how the company contributes to sustainable development. This is but one step in an ongoing engagement of stakeholders to help Novartis anticipate and respond to the challenges for its industry and the company.

7.57 British Petroleum's 1997 Social Report presents a one-page summary of environmental forums held during the year with representatives from government, environmental non-government organizations, the oil industry, universities and others. The 1997 London forum included a debate on what sustainable development means for British Petroleum. Participants' comments encouraged the company to plan to become an energy business rather than a petroleum business and, through support for new technologies, help reduce demand for energy. They also encouraged the company to ``think beyond the factory gate" and seek to influence consumer choice by adding value through services and not merely products.

7.58 Redesigning the organization. We took particular note of the number of senior managers who made references to redesigning their own organizations. While such efforts require considerable dedication by all personnel, the opportunities realized can be significant. These organizations are better able to integrate the knowledge already residing in their people. They are able to develop new, multidisciplinary understandings and perspectives that are essential to responding successfully to the complexity of sustainable development. Two overarching benefits are the creation of novel solutions and building commitment and enthusiasm on the part of employees.

7.59 Senior managers talked about redesign efforts that changed the nature of the discussion within their organizations. For example, the government of the United Kingdom faced a significant challenge in developing its policy framework on transportation. It wanted to develop a framework that integrated economic, social and environmental factors, cut across horizontal departmental boundaries, included all types of transportation, and linked national, regional and local plans; the framework would thereby give local people and business a real say and influence. The fact that the departments of Environment and Transport had recently been combined and given a strengthened regional policy mandate enabled the new department (the Department of the Environment, Transport and the Regions) to connect policies more easily. Managers found that the discussions around the boardroom table focussed more on the interrelationships between the various dimensions of sustainable development.

7.60 Natural Resources Canada told us that a change in organizational reporting structure led to the integration of scientific and policy expertise throughout the organization. The Department was forced to recognize and integrate the short-term time horizons of policy development with the long-term time horizons of scientific research. Reconciling these two time horizons is central to progressing toward sustainable development. This change is credited with helping to build sustainable development into the organizational culture of Natural Resources Canada.

Building collaborative relationships

7.62 Creating alliances and partnerships. Senior managers recognize that their organizations cannot achieve sustainable development in isolation. Increasingly, corporations, governments and non-governmental organizations are seeking to establish alliances with strategic partners and sometimes former adversaries in order to realize their common objectives. Such relationships allow all parties to benefit by combining their individual efforts and building a critical mass for change. The credibility, influence and resources of the partners become mutually reinforcing. New options and innovative solutions can be the result.

7.63 The German government recognizes the concepts of innovation and partnership as crucial to sustainable development. As stated in its publication The Concept of Sustainability: Prerequisites for Tomorrow's Society :

An important key to solving problems which are associated with the objectives of sustainability are innovations at all levels of society in general, and technological innovations and optimisations in particular. The likelihood of innovations which support sustainability increases with the number of groups in society that are willing to let themselves be guided by the shared model of sustainable development.

This means that the willingness and ability of politicians, business leaders and society as a whole to foster innovations in the broadest sense are indispensable for the necessary integration of the various dimensions of sustainability.

7.65 J Sainsbury uses partnerships extensively to support environmentally responsible practices. In its Integrated Crop Management program, the company worked with farmers to develop crop protocols that use pesticides responsibly and use alternative biological and natural methods for the selective control of pests and diseases. The objective of their Living Landscape program is to develop ways of conserving and enhancing biodiversity on the farm in conjunction with the Farming and Wildlife Advisory Group. In this way, J Sainsbury works with its partner suppliers of livestock and produce to encourage them to implement Farm Biodiversity Action Plans. The motivation for the company is simple: "Future generations will need sustainable food production from a living countryside." Also, the company is involved with suppliers in three certification pilot projects under the Marine Stewardship Council to promote sustainable fishing practices.

7.66 Horizontal management. Sustainable development issues, by definition, are multidisciplinary and consequently cut across the activities of many groups within an organization and the mandates of many different organizations. This presents a particular challenge for governments where many departments may have some responsibility for a particular policy area. In that case, there is a need to break down the silos of departmental mandates in order to effectively collaborate and progress toward sustainable development. Our interview participants could identify no particular formula for building co-operation between departments. However, they did note the necessity for leadership from the top. Further, establishing a common, overarching goal with a specific timetable provides incentive to develop creative solutions that have widespread benefits for the organizations or country concerned.

7.67 In the Netherlands, early resistance by the Ministry of Economic Affairs to the first National Environmental Policy Plan waned as evidence of the win-win situation of economic development and environmental protection began to accumulate. Subsequently, the publication titled Policy Document on Environment and Economy - Towards a Sustainable Economy was produced jointly by the ministries of Housing, Spatial Planning and the Environment; Economic Affairs; Agriculture, Nature Management and Fisheries; and Transport, Public Works and Water Management. As we were conducting our research, discussions had begun with a group representing the ministries responsible for environment, social affairs and economic affairs to address the social dimension of sustainable development.

Learning for change

7.69 Senior managers recognize that resistance to change exists on many fronts. There is resistance within industry to new ideas, new technologies and new regulatory and market requirements. There is resistance within government to getting too far ahead of public opinion on issues with wide-ranging ramifications. There is resistance by consumers to new methods of product and service delivery. And there is organizational resistance to new approaches, new structures and new demands on limited resources, both human and capital.

7.70 At the same time, senior managers also realize that they must develop organizations that are responsive to change and use a variety of approaches to achieve this. Exhibit 7.8 illustrates the challenges, approaches and opportunities related to learning for change.

7.71 Research and development. Investments in research and development support corporations as they seek to reposition and reinvent themselves and their services in order to secure their position in a sustainability-driven marketplace.

7.72 British Petroleum is investing in research and development for solar power as part of its efforts to move from being a fossil fuel company to an energy company and to move from delivering products to delivering services.

7.73 Education. Education raises awareness within an organization of environmental and social concerns as competitiveness-building opportunities. Sharing knowledge with clients and customers builds stronger relationships and supports collaborative efforts toward sustainable development.

7.74 Electrolux has placed part of its Eco Know How database and training program on its web site. Information is now available to consumers around the world that encourages the selection of products with the best environmental performance.

7.75 Training for employees contributes to the development of new skills and leads to improved employee engagement and enthusiasm. In the United Kingdom, the government, including the Department of the Environment, Transport and the Regions, is building employee expertise in the "softer" disciplines such as communications, consultation and social issues. The development of such skills is essential to decision making focussed on sustainable development. Employees report increased job satisfaction and motivation.

7.76 Developing new tools. Much of the knowledge and many of the tools needed to progress toward sustainable development still are being identified and developed. Some senior managers told us that the theoretical models of sustainable development and the linkages among the three dimensions are not well understood. They also said that data on the linkages between the social, environmental and economic impacts are sometimes unavailable for use in presenting an effective business case within their organization.

7.77 In order to fill this knowledge void, many of the organizations we spoke with undertake the development of new tools and information to support decision making, education and performance measurement.

7.78 Electrolux collaborates on its holistic approach to environmental management with The Natural Step Foundation. The Natural Step has developed a set of four system conditions as a compass to guide decision makers toward more sustainable alternatives. The company supports research at the Center for Environmental Assessment of Product and Material Systems in Sweden and the International Institute for Management Development in Switzerland.

7.79 ASG is participating with the Swedish Society for the Conservation of Nature to develop concrete tools such as "the transport buyer's environmental handbook".

7.80 Sharing information. Many organizations have a wealth of knowledge within their walls that covers a range of subjects, from the development of new technologies and more efficient processes and products to information databases on the relationships between environmental conditions and health impacts. The senior managers we met with appealed for a sharing of information and success stories among all organizations seeking progress toward sustainable development.

7.81 The Swedish government has recognized, in its policy for a sustainable energy supply, the importance of continuous and relevant information on price and market developments to create better conditions for well-founded decisions relating to investments and the purchase of equipment. It also recognizes that consumer knowledge about energy use and greater efficiency should be improved. The Swedish National Energy Administration is developing information programs aimed at specific consumer groups, industry, and regional and local organizations.

7.82 The National Institute of Public Health and the Environment in the Netherlands has produced a research document Public Health Status and Forecasts 1997: Health, prevention and health care in the Netherlands until 2015 . It presents data on health, disease and health care and provides support for the development of a long-term vision of Dutch health care. It also includes data on life expectancy, quality of life, health inequalities and the determinants of these inequalities. The vision potentially affects many ministries, provincial and local governments, municipal and regional health services and others. Two purposes of the research document are to stimulate discussion and to contribute to evidence-based policy making.

Turning talk into action

7.84 J Sainsbury has an environment committee of the parent company's board of directors, to which each subsidiary company sends a board level representative. The company has six goals that have been set based on key issues for its business. There are 25 targets that translate the goals into measurable activities. The goals and targets were established at the corporate level, with the retail subsidiaries in the United Kingdom adopting the relevant ones. Each target has a divisional director-owner who has been identified and briefed on what is expected. The goals and targets are referred to in divisional business plans, and cascade into the personal agendas of individual staff. Three times a year, each individual's performance is subject to an appraisal that includes any environmental targets. The corporate goals are thus translated into the performance appraisal mechanism, so that monitoring of target achievements is integrated into standard business practice. Accountability under this system is completed with the publishing of a corporate environmental report that is subjected to external verification.

Conclusion

7.86 We heard from both sectors that the environmental dimension of sustainable development is understood and accepted as a driving force of innovation and strategy. Environmental considerations are perceived as sources of competitive advantage motivating both public and private sector organizations.

7.87 The social dimension of sustainable development, while still emerging, is increasingly joining the environmental dimension as a strategic consideration. The issues are many and varied. Organizations are looking broadly at their contribution in this area.

7.88 A number of organizations are looking beyond environmental efficiency to think in terms of sustainable systems and their place in such systems. Environmental, social and economic impacts of transportation, energy, food and health systems are being examined by organizations in both the private and public sectors.

7.89 The organizations we spoke with are seeking to turn challenges into opportunities. Time and again we heard from both corporate and government senior managers that achieving and maintaining competitive advantage is a key motivator and a significant benefit of their activities to address sustainable development issues.

7.90 Senior managers consistently drew to our attention the complexity of the sustainable development agenda: the need to address multiple issues simultaneously and the need to understand the complex linkages between issues. They are engaging experts and other stakeholders to assist in identifying and understanding the issues. And they are redesigning their organizations to stimulate new knowledge, new perspectives and novel solutions while building commitment from all personnel.

7.91 Participants emphasized that the pursuit of sustainable development requires input and collaboration from all sectors of society. The global nature of sustainable development issues reinforces the need to build co-operative, collaborative relationships in order to make progress on the journey. Through alliances and partnerships, organizations are able to combine their individual efforts and promote solutions that focus on the most significant aspects of their product chain, industry or mandate.

7.92 Both corporate and government senior managers highlight the need to overcome resistance to change and to develop positive responses to the changes that are needed to make development more sustainable. Through education and research, they are able to raise awareness, build relationships, develop new skills and reposition their organizations to embrace and adapt to change. The journey toward sustainable development is still in its early stages. As a result, the needed knowledge and tools are still being identified and developed. But there are many efforts under way to address these needs.

7.93 The view from the top is that building strategies, and hence organizations, that deliver economic, environmental and social value is essential to securing the future success of both corporations and government departments.

About the Study

Objectives

The objectives of this study were:

• to describe the perceptions and understanding of senior managers about managing for sustainable development;
• to identify management practices, including tools and approaches, used to manage for sustainable development;
• to identify opportunities and constraints to improve managing for sustainable development; and
• to identify the drivers and barriers affecting the integration of sustainable development into decision making.

Scope and Approach

This study is based on interviews with 51 executives and senior managers in 17 organizations. Eleven of them are in the public sector and six are in the private sector. They were drawn from the agriculture, building design and construction, energy, health, transportation and industry sectors in North America and Europe. Interviews were conducted with up to five senior managers in each of the organizations. In addition, we reviewed documents provided by the participants. For each sector, we invited a Canadian federal department, a private sector corporation and a department in another country to participate.

Of the six Canadian federal departments invited to participate, three departments accepted our invitation: Health Canada, Natural Resources Canada and Transport Canada. Interviews with senior managers in Health Canada and Natural Resources Canada were conducted and have contributed to this report. We were unable to schedule interviews with Transport Canada on a timely basis. Agriculture and Agri-Food Canada, Industry Canada and Public Works and Government Services Canada declined our invitation.

Study Team

For information, please contact Richard Smith.