Intended learning outcomes: Produce an overview on Corporate Social Responsibility (CSR). Present in detail the integrated profit and loss statement (IPL) of Holcim Global.
The awareness from various stakeholders for Triple-Bottom-Line (TBL) thinking and acting becomes evident when looking at the increasing effort of multinational corporations related to Corporate Social Responsibility (CSR). Sustainability reporting can be misused to “greenwash” the image of a company. To prevent this, reporting reqires transparency, completeness, relevance, and auditability. See here also [SuRi16].
An example, which is currently applied in industrial practice, for the above mentioned “full costing” method is the integrated profit and loss statement (IPL) of LafargeHolcim Ltd. [Holc14], a global leader in the building materials industry (cement, concrete, aggregates, and asphalt). LafargeHolcim has been included in the Dow Jones Sustainability Index for more than 10 consecutive years. The goal of this index is to track financial performance of best-in-class companies worldwide assessing economic, environmental and social criteria with a focus on long-term shareholder value. The IPL of LafargeHolcim was introduced in 2014 for the first time in an effort to quantitatively measure the TBL. Figure 3.3.6.1 shows the IPL as a waterfall chart, which represents the different indicators that have an impact on the TBL.
Fig. 3.3.6.1. The integrated profit and loss statement (IPL) of Holcim Global [Holc14].
In [Holc14], LafargeHolcim indicate that the “Triple bottom line can be used to assess opportunities beyond compliance”, whereby the corporate mentions “Compliance with governance, social and environmental requirements and standards”. Basically, the IPL emphasizes the company’s objective in measuring its sustainability aspirations in a consistent way and to measure its progress over time. Furthermore, it can already be used “to identify where 1 US dollar invested would bring the highest societal return”.
Course section 3.3: Subsections and their intended learning outcomes
3.3 Sustainable Supply Chains
Intended learning outcomes: Explain the changing concept of sustainability with reference to the triple bottom line. Disclose economic opportunities for social commitment and for environmental commitment. Describe energy management concepts and measures for improved environmental performance. Produce an overview on the measurement of the environmental performance. Present social and environmental dimensions in industrial practice.
3.3.1 TBL — The Changing Concept of Sustainability with Reference to the Triple Bottom Line
Intended learning outcomes: Produce an overview on the concept of the triple bottom line. Present the paradigm change that correlates to the evolution of sustainability aspects and their interaction.
3.3.2 Economic Opportunities for Social Commitment of Sustainable Supply Chains
Intended learning outcomes: Disclose the term “double bottom line”. Produce an overview on ethical standards, or code of conduct (CoC). Differentiate between groups of company-internal ethical standards and groups of company-external ethical standards. Present the supplier code of conduct (SCoC) and the certificate of compliance.
3.3.3 Economic Opportunities for Environmental Commitment of Sustainable Supply Chains
Intended learning outcomes: Produce an overview on energy-intensive industries. Disclose examples of using alternative fuels and raw materials in order to decrease the carbon footprint and the amount of fossil fuels required in the cement industry. Differentiate between opportunities and threats favoring proactive and reactive environmental involvement.
3.3.4 Energy Management Concepts, Industrial Symbiosis, and Measures for Improved Environmental Performance Using TBL Thinking
Intended learning outcomes: Describe energy management in production systems. Differentiate between energy-aware manufacturing processes and integrating energy efficiency in production information systems. Produce an overview on major aims of industrial symbiosis. Present measures such as enhanced utilization of wastes, the recovery of medium and low temperature waste heat, and the framework for alternative fuels and resources.
3.3.5 The Measurement of the Environmental Performance of Sustainable Supply Chains
Intended learning outcomes: Produce an overview on ecoefficiency. Describe an indicator system for the costs, quality and delivery, and environmental impact performance dimensions.
3.3.6 CSR and IPL Statement — Social and Environmental Dimensions of Sustainable Supply Chains in Industrial Practice
Intended learning outcomes: Produce an overview on Corporate Social Responsibility (CSR). Present in detail the integrated profit and loss statement (IPL) of Holcim Global.
