Fractional Sustainability

Companies in the Basic Phase have yet to formally start their Sustainability journey. Despite this, many companies already have elements of Sustainability in their current policies and procedures. Elements may include employee focused policies such as Paid Time Off or Health Insurance, Community Impact Projects, Corporate Governance for Decision-Making, and Recycling Programs.

The standard practices for operating your manufacturing business typically address some Sustainability issues, but not in an organized manner.

Most small and mid-size manufacturers are currently categorized into the Sustainability Maturity Model’s Basic Phase.

The Emergent stage is often driven by customer requests for sustainability information and manufacturers which provide the data are considered “responsive”. Manufacturers in the Emergent Phase have most commonly received customer requests for climate data through EcoVadis, CDP, or other questionnaires, and these requests have either been delegated to an internal resource, or brushed aside as unimportant. Manufacturers in the Emergent Phase are initiating action on Sustainability by developing a Carbon Footprint to understand their current climate impact. Once a carbon footprint baseline is established, the manufacturer should establish a Climate Target such as “Reduce GHG emissions 50% by 2030”.

For most small and mid-size manufacturers the concept of managing sustainability and carbon emissions is a new concept. Manufacturers may benefit from ESG OWL’s Fractional Sustainability which provides a sustainability expert to partner with the manufacturer’s leadership team through the climate target setting and decarbonization planning process.

ESG OWL’s Fractional Sustainability service is designed to provide routine engagement and long-lasting support for your company. This model is a great fit for organizations just getting started on their journey who are unable to justify a full-time sustainability employee, nor have in-house expertise in Sustainability.

All small and medium-sized manufacturers should make plans to be, at least, in the Emergent Phase to minimize risk of losing customers to competitors due to Sustainability.

A select number of manufacturers are marching forward from Emergent Phase to Strategic Phase as Manufacturing Executives leaders have identified Sustainability a competitive advantage for their company. The move from “responsive” to “proactive” sustainability management signals a major change in approach for a manufacturer, including its employees, customers, and other stakeholders.

At this point companies may be developing a Sustainability Committee to engage with the sustainability program. Manufacturers are making steady progress to achieve their goals by implementing decarbonization initiatives. Businesses may work to implement energy efficiency projects, acquire renewable electricity with lower emissions intensity, fleet electrification or any number of other upgrades to reduce the company's overall carbon footprint.

Work should begin on other relevant issues such as human rights, conflict minerals, hiring and career progression, the United Nations Sustainable Development Goals (UN SDGs), etc.

Companies at this stage may also consider an expansion in scope of their GHG inventories to begin including some scope 3 categories which may include emissions from raw materials, transportation, business travel, employee commute, waste, and other categories. At this point companies may also have developed an external reporting strategy to share their sustainability efforts on websites and/or social platforms. Manufacturers are seeking to further improve their scores from third-party questionnaires such as CDP, EcoVadis or other voluntary reporting platforms.

ESG OWL’s Fractional Sustainability service is long-lasting and designed to help you grow over time. We will partner with you and serve as member of your extended leadership team guiding your sustainability journey of the years.

Manufacturers that are classified in the Optimization Phase are true leaders in their industry. These manufacturers have earned benefits such as the ability to differentiate based on sustainability which increases market share, increases in revenue via premium pricing, and minimizes long-term costs through sustainable operations.

Manufacturers conduct comprehensive GHG inventories that are fully inclusive of their own operations and their supply chains. Manufacturers leverage a Supplier Code of Conduct to formalize supplier expectations on sustainability and operational issues. Given the increase in data and complexity manufacturers in the Optimization Phase need enterprise software to efficiently and effectively manage their sustainability program. For example, companies measuring Product Level Carbon Footprints are able to identify opportunities to minimize their environmental impact at a SKU-level. A Cradle-to-Grave analysis requires analyzing raw materials, processing steps, use of product, and product disposal.

In addition to ESG OWL’s Fractional Sustainability service, manufacturers may benefit from ESG OWL's Software services to identify and implement appropriate sustainability software to streamline the sustainability effort.

For the select few manufacturers who strive to reach the ESG OWL Sustainability Maturity Matrix’s Optimization Phase, ESG OWL is privileged to support you over many years to reach this impressive milestone. ESG OWL looks forward to a long-term partnership with you to achieve sustainable manufacturing and be a part of strong financial performance at your manufacturing company.