CSR and The Triple Bottom Line
Tools for issuing a successful CSR report

SUSTAINABLE MATERIALS

There are various ways to define sustainability in materials: local sourcing, labor practices and the inherent characteristics of a material. Below are four approaches to sourcing sustainable materials. 

Sustainable materials through purchasing  from companies aligned with the triple bottom line:

Below is a  list of sources for raw materials.  They are organized by industry. It is presented as suggestions and leads for starting the process of finding a suitable supplier for a business when sourcing materials.   This is list is an on-going project. Suggestions for material categories and sources? Please let us know.

Sustainable materials through Local Sourcing and Carbon Emission Savings

The benefits of local sourcing can also be measured by calculating the economic benefit in reducing carbon emissions, thereby contributing to slowing global warming. A tool designed by Laura Musikanski  for measuring reductions is provided here.

This tool requires certain assumptions:

• Average miles traveled for a material, ie. according to  Paul Hawken, Amory Lovins, and L. Hunter Lovins , authors of  Natural Capitalism , food travels an average of 1,500 miles.

• Definition of Local. For this tool, local must be defined in terms of distance traveled. 

• Discount Rate, number of trips taken for a year, and term for the net present value calculation.

The following facts are build into the tool:

• A freight truck runs on diesel fuel with 8 miles per gallon. One metric ton equal 2,204.62262 pounds.  For each gallon of diesel used, carbon emissions are 22.2 pounds.

• The monetary value of carbon emission can be based on the Chicago Climate Exchange prices. The European Climate Exchange is another model that can be used. Note that prices vary considerably between the models.

The tool (to be put in excel): 

Step One: Average miles traveled - Local miles traveled = total miles saved

Step Two: Total miles saved /8 = diesel gallons saved

Step Three: Diesel gallons saved x 22.2 = Total pounds of carbon emissions

Step Four: Total pounds of carbon emissions / 2,204.62262 = Tons of carbon emissions saved per trip

Step Five: Net Present Value {(Tons of carbon emissions saved per trip x number of trips taken year 1)....}

Sustainable material through Local Sourcing and the Local Multiplier Effect

The local multiplier effect helps local economies when a business buys locally sourced materials. The local multiplier effect was  identified by John Maynard Keynes  in his book The General Theory of Employment, Interest and Money (1936). 

Recent studies on the local multiplier effect indicate that for every 45% of every dollar spent on locally sourced goods and services positively impacts the local economy. However,  where for non-locally sourced goods and services, only 15% of every dollar resurfaces in the local economy.  By identifying  the portion of income customers are likely to spend on a business goods or services, a business can make a estimate on the return locally sourcing goods will yield.

Sustainable materials through Fair Labor Practices

Fair labor can be defined a number of ways.

One way is to have a neutral third party verify that working conditions are fair. The Fair Labor Association  (FLA) is an non-governmental organization that  acts as a monitoring agency. Like the SA8000, the FLA's code of conduct is based on the ILO's principles. A business communicate to stakeholders that  its products and goods follow fair labor practices  by becoming a licensee of the FLA.  Other  third party verification entity is the  Ethical Trade Initiative.

The Fair Trade organization offers labeling opportunities. Fair trade certification is based on prices paid, where Fair Labor organizations  focus on working conditions.

Another way is to pay a living wage. Living wage is defined in the context of the worker's community.

Yet another way is to source through a business that has an organizational structure that enhances social justice. Marjorie Kelly, in her book "The Devine Right of Capitalism," calls on business to redefine the income statements in terms of Capital Income + Employee Income = Revenue – Cost of Materials; to cap the disparity between the lowest paid worker and the CEO; and to shift the ownership structure to a partnership paradigm so that employees have voting power over major changes.

copyright Laura Musikanski laura.musikanski@gmail.com