1.9 Discussion and Practice

You know that in theory, the TBL places equal weight on the three Ps—People, Planet, and Profit. Simply put, as Figure 1.1 shows, the circles used to depict the 3Ps are of equal size. Identify 3–5 people with varied backgrounds and demographics and ask them to take 60 seconds to think about their own spending and investing priorities and draw the triple bottom line. Ask them to indicate the relative importance of each P (people, planet, and profit) by the size of the circle. Have them allocate 100 points across the three circles to communicate the relative importance of the 3Ps. Finally, ask them to briefly share their priorities and thought process.

What are your takeaways? How does the insight from this exercise inform the quest to cultivate a more sustainable society?

Referring back to the discussion of Engel’s coefficient and Figure 1.4, go to your favorite data source for GDP per capita (e.g., UN, World Bank, World Fact Book)

• Looking at GDP per capita, which countries would you expect to lead the green energy transition (as well as other sustainability initiatives)? Which countries will lag behind?

• How might your analysis influence your supply chain design decisions?

• Would you adopt consistent sustainability standards—both people and planet—for global operations or would you use different standards for diverse geographic locations? What does your answer imply regarding authenticity?

Imagine you are going to participate in a debate. Develop a debate strategy for the three societal motivations: Go Slow, Let the Market Show the Way, Act Now, Cost Doesn’t Matter, and Get It Right to Avoid a Backlash. After preparing your arguments, which perspective best fits your own? Did preparing for the debate change your perspective or merely confirm it?

Be prepared to participate in an in-class or online discussion board debate. Assume that you will be randomly assigned to one of the three motivations.

Which of the four corporate motivations—image enhancement, efficiency optimization, resource acquisition, or true belief—best describes your personal view of reasons to pursue sustainability? Which type of company do you want to work for? Identify two or three companies that pursue that motivation.

Finally, how do you think the notion of authenticity and the types of motivations will change over the next decade? What do your thoughts imply about the staying power of the ESG movement?

Note: The three measurement platforms discussed—i.e., SBTi, GHG Protocol, and Sustainability Consortium—are potentially complementary approaches. You could conceivably participate in all three at the same time. That said, imagine your boss approached you with the following request.

“I’ve noticed your passion for social responsibility and sustainability. I’d like you to explore different approaches for us to measure and improve our environmental footprint. However, resources are tight right now. We don’t have the time or money to learn about more than one approach. Which would you recommend we pursue? Be sure to make a sound business case. We can’t afford to get this wrong.”

Which approach would you recommend? Why? What are the pros and cons of each the SBTi, the GHG Protocol, and the Sustainability Consortium?

Focusing on the GHG protocol, discuss the pros and cons of each of the three scopes. How difficult would it be to accurately assess Scope 3 emissions for a Fortune 500 company’s supply chain? What would be the biggest barrier to an accurate accounting? How much confidence would you have in any company’s Scope 3 assessments?