At a time when we are striving with determination to improve our financial performance, one could ask why we are worrying about such concepts as Sustainable Development. The answer is quite simple – financial performance is essential, but without working on the other two legs of the stool, environmental and social performance, we will not have developed a business platform that is balanced and sustainable in the long-term” Mark Moody-Stuart
Introduction
Sustainable Development is about integration and balance – integrating the economic, social and environmental aspects of everything we do and balancing short term wants with long term needs. Sustainable Development applies to everyday choices that we make, such as how we dispose of our waste as well as how we develop major projects.
It is Group policy to embrace the concept of Sustainable Development in all business decisions and in so doing to evaluate the economic, environmental and social impact of development options. The management framework that needs to be adopted by opportunity/project teams in pursuit of Group policy is set out below. Sustainable Development must be considered whenever Opportunity Framing is carried out.
Sustainable Development Management Framework
Vision, Core Purpose and Business Principles e n Opportunity/project teams must consider how Sustainable Development helps them achieve the Group’s aspiration of ‘top performer of first choice’ as articulated in the Shell Business Framework.
Sustainable Development is the practical expression of the Group’s Core Purpose of ‘helping people build a better world’ and, with the Statement of Business Principles, is central to the way Shell does business. As a result, all opportunity activities should incorporate economic, social and environmental considerations.
Demonstrate leadership
The team needs to: • demonstrate strong, visible leadership and commitment to Sustainable Development
- Define and communicate a locally meaningful vision and enrol others in this vision
- Ensure that motivators (such as scorecards, appraisal and reward systems) are aligned with Sustainable Development objectives.
- Set and communicate clearly defined aspirations with supporting policies, and make sure systems exist to help implement them.
- The team’s aim should be to create and maintain a culture that contributes to Sustainable Development through the actions of the team, individuals and those with whom business is done.
Identify stakeholders and risks and opportunities
The team should set top level criteria for identifying stakeholders and risks and opportunities making sure that it has taken account of economic, environmental and social considerations. The team should examine its environment for any relevant risks and opportunities, involving external stakeholders as necessary. Significant issues and the relevant stakeholders for each of these risks and opportunities should be recorded.
Prioritise risks and opportunities and set objectives
In order to focus its efforts, the team should evaluate and prioritise risks and opportunities that it has identified and assess who the relevant stakeholders are and then consider what can be done to address these risks and opportunities. Bearing in mind the views of stakeholders, activities and plans should be re-evaluated and decisions made on how to measure progress and which key performance indicators will be used. For each risk and opportunity, the range of options should be assessed, together with their associated implications, before finalising opportunity objectives across all dimensions of Sustainable Development.
Define strategy, targets and plans, mobile resources
The team should identify the strategy needed to meet its objectives and record how it decided strategy and the stakeholders’ view. Plans should show how progress will be measured and what will be subject to verification. Plans and targets need to be communicated, allowing for more detail as appropriate (for example individual or team tasks and targets). Establish a suitable organisation, adequate resources with the required skills and define authorities and responsibilities to make things happen. Apply well-understood standards and procedures to show how individual performance will contribute to the overall plan and apply these requirements to contractors and to joint ventures under the team’s operational control.
Carry out plans
The plans, which integrate economic, environmental and social considerations into the team’s activities, need to be effectively put into action.
Monitor and measure
Measure both hard and soft data that act as indicators for the economic, environmental and social aspects of performance, ensuring that stakeholders are involved. Monitor how activities are carried out and controlled, investigating unusual results. Where action is needed to meet current plans, or where plans need modification, make and document any immediate changes required. Also identify any significant opportunities.
Report and communicate performance
Request and gather performance data relating to all three areas of Sustainable Development, collating and aggregating the results as agreed. Where appropriate, the accuracy and appropriateness of performance indicators should be verified independently. Select suitable reporting formats, finalise the information for the reports and communicate in a way that meets the wishes and expectations of stakeholders.
Review and incorporate learning
At intervals, formally review actual performance against plans. Analyse and seek to understand any variances. Review and assess the overall effectiveness of business processes to ensure their continuing suitability for embedding Sustainable Development. Reward business behaviour which takes Sustainable Development into account. Learn from the results of these reviews and incorporate any feedback from stakeholders to understand how improvements can be made.