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Sustainable Development Reporting
 
Executive Summary
What is SDR?
Why SDR?
Businesses' Potential Impacts
The Business Case
Benefits of Reporting
How to do SDR
Planning the Process
Issues and Indicators
Preparing the Report
Management Process
Links and Resources
Case Studies
Member Involvement
Ongoing NZBCSD Involvement
Download Guide PDF

THE BUSINESS CASE

SDR has a number of business benefits – it can lead to the identification of new business opportunities, and the creation of new sources of value for organisations – that are consistent with sustainable development principles.

This value can be created in a number of ways, both internally and externally, and will differ between organisations.

Some questions that help to identify the business case include:

Can we secure a competitive position through ‘sustainable’ products and services by developing a SDR?

Can we use a SDR so that sustainable development becomes a driving force for positive changes in the thought processes of people in the organisation?

Will the SDR be able to be used for strategic reasons, such as to get the best people?

Can the SDR be used as a tool to support the organisation’s continuous improvement?

Can the SDR be used as a tool for engaging in on-going dialogue with stakeholders?

Can the SDR increase the intangible value of our organisation and our brands?

Can we use the SDR to respond to increasing societal expectations on company behaviour? The sidebar shows generic internal and external areas where value can be created by undertaking a rigorous SDR process. Not all of these drivers are applicable to all organisations – value is generated in different ways for different organisations.

Drivers for SDR
Internal Drivers
Motivating, empowering and aligning staff consistent with strategic objectives – especially in generating commitment towards sustainable development;
Attracting and retaining high caliber employees;
Driving change processes;
Stimulating the development of necessary data/process management systems;
Building effective management of risk;
Encouraging innovation.

External Drivers
Enhancing reputation;
Enhancing community license to operate;
Demonstrating effective management of risk;
Growing brand value;
Developing customer loyalty;
Increasing market share;
Building and maintaining stakeholder relationships through engagement and dialogue.


"The benefits are many. We have already started to use the information we have gathered to help us run our business in better ways. We are identifying risks to our business and assessing ways to transport our products more efficiently. We are cutting waste and becoming simply better at what we are doing."
ROBB DONZE, MANAGING DIRECTOR, INTERFACE AGENCIES
Developing the ‘Business Case'
Identifying the ‘business case’ will be based each organisation’s unique situation and characteristics. EG:
Markets – Sanford exports products to Europe where customers are becoming increasingly demanding about the social and environmental practices of suppliers;
Size – Interface Agencies is a small, eight-person organisation. SDR is useful for demonstrating leadership and using a single framework for operating the business better across many dimensions;
Ownership structure – Hubbard Foods is a private company so buy-in from shareholders was not as important as a company like Sanford – where feedback suggests more evidence of the business case is required;
The needs of stakeholder groups – The Warehouse has a number of suppliers and influencing them about sustainable development will be a key part of The Warehouse’s own sustainable development performance;
Regulators – Watercare, for example, requires resource consents for its operations and has used SDR to demonstrate its commitment to transparency and exclusivity;
Investors – The Warehouse’s report led to its representation on an international index that is a favourite for large ethical index funds. As a direct result The Warehouse share price increased by about 5%.