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Perspectives · Benefits Management

Sustainability: Debunking the False Notion That It Adds Costs

Dr. Joel Carboni March 27, 2023

What comes to mind when we hear the term “sustainability”?

Sustainability is multifaceted and complex. It is wide in range, and its spectrum encompasses everything from modern slavery to energy efficiency. To many, when you ask them, "what is the first thing that pops into their head when you hear the word sustainability," it usually isn't the lack of potable water in a developing nation. No, images of green roofs, solar panels, electric cars, and eco-friendly products will most likely pop up. Real sustainability issues pose a significant challenge for many individuals and organizations, prompting the misconception that it invariably adds costs.  This is also referred to as the "sustainability premium". This is the belief that sustainability is expensive and hinders efforts to reduce the negative impact on the environment and society. In this post, I will prove that the perceived connection between sustainability and added costs is a misconception that needs to be debunked.

Sustainability and Profitability: A Conflict or a Myth?

Sustainability is swiftly turning into a game-changer in the business world. As stakeholder expectations grow, rules tighten, and value shifts towards sustainable markets, it's clear that businesses need to adapt. While some executives recognize sustainability as a driver for business transformation, they often view it as a threat to profitability. This mindset leads to a focus on short-term financial results rather than long-term sustainable growth.

This view creates hurdles in integrating environmental and social impact into business decisions. As a result, sustainability is often tacked on instead of being woven into the organization's fabric. But is it true that chasing sustainability means giving up profitability? Or is this just a myth? Do leaders really need to toss out the traditional business model to make sustainability a viable strategy?

The Relationship Between Sustainability and Profitability

The truth is, profitability and sustainability aren't as opposed as they seem. In fact, evidence shows that sustainable practices can boost a company's long-term financial health. By embracing sustainability, companies can become more efficient, use fewer resources, and spur innovation, giving them an edge in sustainable markets.

Instead of discarding the traditional business model, leaders can evolve it to include sustainability. By changing how they measure success, they can weave environmental and social impact into their key performance indicators and business goals. This shift aligns the pursuit of profits with responsible, sustainable practices.

Integrating Sustainability into Business Strategy

To do this, companies need to stop seeing sustainability as a separate initiative. Instead, they should embed it deeply within their culture and strategy. Leaders need to understand that sustainability isn't just a box to tick to please stakeholders. It's a crucial part of a resilient, forward-thinking business model.

By integrating sustainability in a meaningful, systematic way, companies can create long-term value and strengthen their position in a growing sustainability-focused market. This requires a change in mindset, a commitment to transparency, and collaboration with stakeholders at all levels.

The Role of CEOs in Sustainability Transformation

Business leaders around the globe now accept that sustainability isn't optional—it's essential. A staggering 98% of CEOs now see their role in steering their businesses towards greater sustainability, up from 83% ten years ago.

However, many executives worry that pursuing sustainability could harm profitability. According to a previous study by Accenture, 58% of the 1,496 executives surveyed believe sustainability conflicts with growth.

Sustainability Transformation: Real Obstacles or Perceived Myths?

But is this worry founded, or is it a misconception? Despite the common belief in a trade-off, many companies are embracing sustainability without sacrificing profits. Current trends show that 63% of CEOs are launching new sustainable products and services, and 43% are moving towards circular business models.

Some industries, like automotive, have made strides responding to stricter regulations and government incentives. But overall, adoption of sustainable business models isn't keeping pace with what the world needs or what stakeholders demand. For instance, the NYU Stern Sustainable Market Share Index™ reports that products marketed as sustainable grew 7.3% from 2015 to 2021, compared to 2.8% for other products. Yet, sustainable products still make up only 17% of the total market.

The conversation about the challenges of sustainability transformation raises the question: are these obstacles real or just perceived myths? Future leaders often worry about the costs, complexity, impracticality, unreliability, and slowness of becoming a sustainable business. However, closer examination and testing with 280 senior business executives reveal that cost and complexity are more linked to standard business practices, making them favorable winds for sustainable transformation.

In Summary

The idea that profitability and sustainability are at odds is a myth. Companies can align their financial success with their sustainable impact by adopting responsible practices, making sustainability a core part of their strategy, and seizing opportunities in a world where sustainability is a driving force for change. By doing this, businesses can succeed today and build a better future for everyone.

Benefits Management Sustainability

Perspectives · ESG

The Relationship Between Project Activities, ESG Disclosures, and Sustainability Reports

Dr. Joel Carboni March 22, 2023
Environmental, social, and governance (ESG) disclosures and materiality reporting have become increasingly important topics in the business world. In recent years, investors and stakeholders have been placing greater emphasis on organizations' impact on the environment, society, and corporate governance. As a result, ESG disclosures and materiality reporting have become essential for organizations that want to demonstrate their commitment to sustainable business practices. NOT WOKE While ESG practices have gained more attention in recent years due to the increased demand for transparency and accountability, they are not a result of the "woke" movement. Instead, ESG practices have been adopted by businesses and investors who understand the importance of good corporate citizenship and sustainable business practices. ESG is not a fleeting trend or a product of "woke" culture but rather a longstanding and critical component of responsible business practices. By adopting ESG practices, organizations can demonstrate their commitment to sustainability, accountability, and ethical values, all contributing to long-term business success.

ESG Disclosure or Sustainability report?  What is the difference?

While ESG disclosures and sustainability reports both provide information about a company's environmental, social, and governance practices, they differ in terms of content, format, and requirements.

ESG disclosures are typically mandated reports that companies are required to produce by governing bodies or stock exchanges. These reports typically focus on a limited number of issues that are deemed critical or material to investors, and are based on established standards such as the Global Reporting Initiative (GRI). ESG disclosures provide a snapshot of a company’s performance on specific ESG issues, such as carbon emissions or board diversity. They are often closely scrutinized by investors and stakeholders and can impact a company's reputation and financial standing.

Sustainability reports are different. They are not required by law or regulations, and are produced by organizations using their own criteria and guidelines. These reports are usually more comprehensive and provide a broader overview of the company's sustainability practices, including social and environmental impacts, community engagement, and philanthropy. Voluntary sustainability reports also provide an opportunity for companies to demonstrate their commitment to sustainable business practices and share their sustainability story with stakeholders.

The Role of Project Activities in ESG Disclosures and Materiality Reporting

Project activities play a crucial role in both ESG disclosures and sustainability reporting. In order to accurately report on an organization's sustainability practices and identify the most material issues, project activities must be closely monitored and analyzed. Our Process as outlined in the new (and free) GPM P5 Standard for Sustainability in Project Management follows the following flow: By assessing project activities against the P5 standard using the impact analysis, organizations can identify their successes and areas for improvement in regards to environmental, social, and governance impacts. As I outlined in my post about CSOs, project materiality is critical to both disclosures and reporting.

Sustainable project management is essential for organizations who want to achieve long-term business success

By aligning their projects with broader sustainability goals, organizations can demonstrate their commitment to responsible business practices and contribute to a more sustainable future.  In practice, optimizing their use of resources, reducing waste and emissions, all the while improving stakeholder engagement is critical. Sustainable project management practices such as these lead to increased efficiency, reduced costs, and improved reputation, thus contributing to business success. Ultimately, sustainable project management is an investment in a business's long-term success and resilience.
ESG P5 Sustainability Reporting Sustainable Project Management™ Tools and Methods

Perspectives · Perspectives

The Importance of Chief Sustainability Officers Interfacing with Project Organizations.

Dr. Joel Carboni March 16, 2023

How Can Project Organizations Benefit the Chief Sustainability Officer?

The Chief Sustainability Officer (CSO) is becoming increasingly important in today's business world. As companies become more aware of their impact on the environment and society, they hire professionals to help them navigate the complex sustainability landscape. However, being a successful CSO requires more than just understanding the issues at hand; it also requires connecting with projects as much as, if not more than, organizational operations.

Here are some reasons why connecting to projects is crucial for a CSO's success and how they can do so effectively.

  1. Aligning Projects with Sustainability Goals: One of the primary responsibilities of a CSO is to ensure that the company's sustainability goals are met. This means they must be involved in or draw materiality from projects as they impact the environment and society. By connecting with projects, CSOs can ensure they align with the company's sustainability goals and contribute to its overall vision. Also, they can draw from them for sustainability reporting and ESG disclosures
  2. Identifying Opportunities for Improvement: Connecting with projects also allows CSOs to identify opportunities for improvement. They can assess where changes can be made in order to reduce waste, increase efficiency, or improve social impact. By doing so, they can help the company move towards its sustainability goals while also improving its bottom line.
  3. Building Relationships: Effective communication is key to any successful project. By connecting with project managers and team members, CSOs can build relationships and establish trust within the organization. This makes it easier for them to implement sustainable practices and gain support from stakeholders.
  4. Ensuring Accountability: They can monitor progress and track results to ensure that all projects contribute to meeting sustainability goals.

How can CSOs connect with projects effectively?

Now that we've established why connecting with projects is important, let's discuss how CSOs can do so effectively:

  1. Establish Clear Communication Channels: Clear communication channels are essential for effective collaboration between different departments within an organization. A successful CSO needs to establish clear lines of communication with all project managers and team members involved in relevant projects.
  2. Set Expectations: Once communication channels have been established, the CSO needs to set expectations regarding sustainable practices and outcomes for each project involved in their portfolio.
  3. Provide Resources: For sustainable practices to be implemented successfully across various organizational departments or units, it requires resources such as funding or technical expertise. The CSO should provide adequate resources so each project has what it needs to succeed sustainably.
  4. Encourage Collaboration: CSOs should encourage collaboration between different departments within an organization working on similar projects or initiatives as this will foster knowledge sharing leading towards better outcomes.
  5. Measure Progress & Evaluate Results :By measuring progress regularly against set targets, the CSO would be able to evaluate results which would allow them to adjust strategies accordingly.
  6. Report:  Include project related impacts in ESG disclosures and Sustainability reports.

What value do projects bring to the CSO?

Materiality The alignment of organizational strategy for sustainability with organizational business objectives is a key aspect of a CSO's role in the C-Suite.  When the organization has delivered on that strategy either in an operational context or through projects and change initiatives,  what is material from those efforts comprise the non-financial reporting and ESG disclosures.  This graphic below, from the Section 6 of the new P5 Standard for sustainability in project management version 3 (get it here for free) shows how both operations and project are key to materiality.     As the role of a CSO is crucial in today's business world. By connecting with projects, CSOs can ensure that their company's sustainability goals are met while identifying opportunities for improvement and building relationships within the organization. To do so effectively, CSOs must establish clear communication channels, set expectations, provide resources, encourage collaboration, measure progress and evaluate results regularly, and include project-related impacts in ESG disclosures and sustainability reports. By doing so, they can help their companies move towards a more sustainable future while also improving their bottom line.
CSO ESG materiality Projects Sustainability Reporting

Perspectives · Perspectives

What is sustainable procurement, and why should a project manager care?

Michael Young March 8, 2023
Procurement is hardly an interesting topic for most people. In fact, the average person probably doesn’t even know what ‘procurement’ actually means. Most project managers understand that procurement is one of the ten knowledge areas in the Project Management Body of Knowledge. Depending on the industry you work in or the company you work for, you may have little or no day-to-day involvement in any procurement or contract management activities. As the project manager, you are actively involved in all parts of the procurement process.

So how did we get here?

Government organizations have quite strict rules and processes when it comes to procurement. When you are spending taxpayers' money, there is an expectation that it is spent appropriately. Not-for-profits and commercial businesses also have policies that must be followed. Donors and shareholders also have expectations about how their money should be spent or invested.

Over the last few years, there has been a shift in these policies to include a focus on the environment and addressing particular social issues. Governments in numerous countries have led a push to identify instances of and reduce the risks of modern slavery. They have called for suppliers to have methods that eliminate waste, promote recycling, or promote the use of local suppliers. This shift has borne specific social procurement and sustainable procurement policies.

As most organizations move towards a net-zero future, energy efficiency, embedded energy, and CO2 emissions come more into focus, further expanding what is required under these policies.

So what has this got to do with project management?

As a project manager, you are required to engage suppliers and hire resources for your projects.

While the process and policies may already be set by the client or organization you work for, you often can prioritize certain requirements or shape the selection criteria used when selecting suppliers. When engaging suppliers, we have a unique opportunity to ‘raise the bar’, take the lead, and make a difference in the world.

For those who are members of professional or peak bodies, we are also expected to adhere to a code of ethics or conduct. PMI, for example, identifies several key expectations in their Code of Ethics and Professional Conduct, including “showing high regard for ourselves, others, and resources entrusted,” including “…the safety of others, natural or environmental resources.” There is also an aspirational responsibility to “…make decisions based on best interests society public safety & environment.”

The International Project Management Association (IPMA) in their Code of Ethics & Professional Conduct, makes commitments to wider society & minimizing impacts on the environment.

At GPM, we have a code of ethics as well as a supplier code of conduct.

So from a professional ethics perspective, this is something we must do.

So what do you do as a project manager?

Several years ago, I was working with government clients with policy responsibilities for environmental protection. I was managing a large technology program that involved replacing thousands of computers & laptops. Each device was delivered with individual boxes containing styrofoam packaging & lots of plastic - hundreds of cubic meters of styrofoam & hundreds of kilograms of plastic potentially needed disposal.  Managing this would be time-consuming and the impact large.

The easiest solution was to eliminate this problem entirely, which not only would make life a little easier for the project team but, most importantly, it would eliminate a huge amount of waste going into landfill.

So what did we do?

When the requirement was drafted in the contract for the purchase and delivery of the new IT equipment, we specified that there was to be no styrofoam or plastic packaging. This seemed quite radical at the time, and we received a lot of enquires and comments about this. In essence we had asked suppliers to step up and innovate. They had to work with their suppliers – the packaging company – to come up with a solution, which they did. The supplier provided PCs and monitors in a large cardboard box, with cardboard separating each item. There was no plastic wrapping. There was no styrofoam packaging. And importantly, there was no higher rate of damage or breakage. At the end of the project, we asked for feedback about the requirement we imposed. The CEO of the company said that this is how they will do business moving forward. When we asked what benefits did it deliver, his first comment was: “it saved us tends of thousands of dollars because we were shipping smaller volumes and not paying to ship plastic and styrofoam around the country”. Through this process we were not only able to reduce the impact for a specific project, but importantly were able to influence the future approach taken by suppliers, with the net result being less waste being generated, less plastic and styrofoam going into landfill, and cost savings being made in transportation. As the clients we deliver to and the organisations we work for pursue sustainability objectives, and in particular as they sign on to a net zero target, project managers will be expected to play their part and make a contribution to these goals.

Applying P5 

At GPM we have heard similar stories from project managers around the world. Project managers assess the impact through the P5 Impact Analysis. By identifying potential negative impacts a project manager can modify the project approach, or in our example here supplier requirements, to take an alternative approach which is lower impact. Once this impact has been assessed a sustainability management plan is created to address any impacts.

In our new P5 Standard Version 3.0, we recommend the following practices:

The project team should:
  • Include the environmental, economic, and social impact of the product or service as a factor in all purchasing decisions.
  • Evaluate the environmental and social performance of all suppliers.
  • Prioritize products and services with reputable sustainability certifications such as Energy Star, Forest Stewardship Council (FSC), and Leadership in Energy and Environmental Design (LEED).
  • Encourage the use of eco-efficient products and services that use less energy, less water, have a longer life span, and are made from recycled or reused materials.
  • Train relevant project workers on sustainable procurement.
  • Pay suppliers in accordance with their contracts and hold them to the same standards and practices for sustainable procurement used by the project.
Sustainable procurement practices and contracts can help to achieve the following sustainable project outcomes:
  • Cost savings through the use of more energy and resource-efficient products and services.
  • Reduced waste and increased recycling.
  • Enhanced brand image, making it more attractive to customers and investors, who prioritize sustainability.
  • Increased innovation, as suppliers are encouraged to develop more sustainable products and services.
As we can now see, there is far more to procurement than ticking boxes (no pun intended) on an RFP. As sustainable project managers we have the ability to directly effect our organisations corporate net zero targets as well as transform our  supply chain into an environmentally sustainable value chain.  In doing so, we will continue to make our profession more valuable and strategic while moving up the ladder to the C suite.
P5 Standard Sustainable Procurement

Perspectives · Leadership

Unlocking ASEAN’s Sustainable Performance with the GPM P5 Standard

Hasyimah Afandi February 27, 2023
The ASEAN region has consistently been one of the most supportive areas in terms of adopting and integrating our tools and methods. In fact, my personal journey with GPM began five years ago when I took a training course and was inspired to take action. As someone who is passionate about sustainability, I believe that this region plays a critical role in shaping the future of sustainable development. A little background on ASEAN The Association of Southeast Asian Nations (ASEAN) is a regional intergovernmental organization that includes ten countries in Southeast Asia. The region is home to over 650 million people (I am from Malaysia...) and has experienced rapid economic growth over the past few decades. However, this growth has also led to significant environmental and social challenges, making sustainability critical for the ASEAN region.  

One of the primary reasons why sustainability is critical for the ASEAN region is its vulnerability to climate change.

The region is particularly susceptible to rising sea levels, increased frequency and severity of extreme weather events such as typhoons and flooding, and changes in rainfall patterns. These impacts significantly affect food security, public health, and economic development. The agriculture sector is a crucial contributor to many ASEAN economies, but it is also particularly vulnerable to climate change impacts. Changes in rainfall patterns can lead to droughts or floods that affect crop yields, while rising temperatures can increase pest infestations leading to crop losses. These impacts not only affect local food supplies but also have global implications, given the role of ASEAN in supplying commodities such as palm oil, rubber, and coffee. In addition to climate change impacts on agriculture, the ASEAN region also faces environmental degradation due to deforestation activities and marine pollution from plastic waste. Deforestation rates are among the highest in the world due to logging activities and the conversion of forests into agricultural land or plantations. This has led to habitat destruction for endangered species such as orangutans and tigers as well as soil erosion and loss of natural carbon sinks. Marine pollution from plastic waste has become a growing concern in the region, with several ASEAN countries listed among the top contributors globally. Plastic waste not only affects marine life but also poses a threat to human health through the contamination of seafood consumed by local communities. Social equity issues are prevalent in many ASEAN countries, with poverty rates varying widely across member states, including high levels of urban poverty in some areas. Environmental degradation often exacerbates these inequalities by disproportionately affecting marginalized communities that depend on natural resources for their livelihoods.

Sustainability is critical for addressing these challenges faced by the ASEAN region.

It requires balancing economic growth with environmental protection concerns while ensuring social equity considerations are considered. To achieve this balance, there needs to be an integrated approach toward sustainable development that involves government agencies at national and regional levels working together with businesses sectors, including SMEs (small-medium enterprises), civil society organizations including, indigenous groups , and international partners. An integrated approach would require policy frameworks that incentivize sustainable practices such as renewable energy adoption or sustainable forest management practices while imposing penalties on unsustainable practices such as illegal logging or plastic waste dumping into oceans. Education programs can play an essential role in promoting sustainability awareness among citizens especially young people through school curriculums or public awareness campaigns focused on reducing plastic use or promoting water conservation measures. Businesses sectors have a vital role to play too by adopting sustainable business models that prioritize resource efficiency measures like recycling programs or implementing cleaner production processes aimed at reducing greenhouse gas emissions along supply chains while being profitable at the same time. Civil society organizations including indigenous groups should be involved in decision-making processes related to natural resource management policies given their traditional knowledge about ecosystems they live within. This will ensure their voices are heard when decisions affecting their livelihoods are made. International partnerships between governments agencies, businesses sectors, civil society organizations including indigenous groups can help facilitate technology transfers aimed at promoting sustainable practices while providing financial support where needed In conclusion, sustainability is critical for addressing environmental degradation social equity issues faced by ASEAN countries which pose significant threats not only locally but also globally given their contributions towards climate change impacts. Addressing these challenges requires an integrated approach involving all stakeholders working together towards achieving common goals while balancing economic growth with environmental protection concerns.

What are the specific challenges and what does that mean to project managers?

If you're a project manager in Southeast Asia, you know that striving for sustainable performance in projects is essential. Fortunately, there’s a tool to help make sure you stay on track: the Global Project Management Professional (GPM) P5 standard. Let’s take a look at some challenges and what this standard can do for your projects and how it can help ensure their success. Southeast Asia faces a range of sustainability challenges, but here are five of the most pressing ones:
  1. Climate Change: The region is highly vulnerable to the impacts of climate change, including sea-level rise, extreme weather events, and increased temperatures. These changes can affect agriculture, water resources, and infrastructure.
  2. Deforestation: Southeast Asia has some of the highest rates of deforestation in the world due to logging, agricultural expansion, and urbanization. This not only contributes to climate change but also threatens biodiversity and indigenous communities.
  3. Water Scarcity: Many parts of Southeast Asia experience water scarcity due to over-extraction from rivers and aquifers, pollution, and poor management practices. This can have significant impacts on public health, food security, and economic development.
  4. Energy Access: Despite being home to abundant renewable energy resources such as solar and hydropower, many people in Southeast Asia still lack access to reliable electricity. This hinders economic development and limits opportunities for social mobility.
  5. Waste Management: Rapid urbanization in the region has led to a surge in waste generation which often ends up in landfills or pollutes local environments. Poor waste management practices can harm public health and contribute to greenhouse gas emissions.
 

Projects that address these sustainability challenges will require coordinated efforts from governments, businesses, civil society organizations, and individuals across the region and they need tools and methods.

The GPM P5 standard is an indispensable tool for project managers looking to achieve sustainable performance in Southeast Asia. Its detailed guidance provides structure and direction on how best to manage projects from start to finish; its templates enable efficient budgeting; its best practices allow managers access to industry knowledge; and its risk assessment features provide early warning signs of potential issues down the line - all of which contribute greatly towards achieving successful outcomes quickly while avoiding costly delays or setbacks along the way. By following these guidelines closely, project managers will have no trouble unlocking greater efficiency - leading ultimately towards greater success over time! The GPM P5 Standard can be used in several ways to address sustainability challenges in Southeast Asia. Here are four key examples:
  1. Climate Change: The Planet category of the GPM P5 Standard is comprised of elments that can help project managers integrate climate change related considerations into their projects. This could include using renewable energy sources, reducing greenhouse gas emissions, and designing infrastructure that is resilient to extreme weather events.
  2. Deforestation: The People category of the GPM P5 Standard is comprised of elements that emphasize social responsibility and stakeholder expectation management. By involving local communities and indigenous groups affected by deforestation in decision-making processes and providing alternative livelihoods, projects can mitigate the negative impacts of deforestation.
  3. Water Scarcity: The Processes lens of the GPM P5 Standard provides guidelines for project processes. In projects, sustainable water management practices such as rainwater harvesting, water conservation, and wastewater treatment are key considerations that should be taken into account in this region. By reviewing impacts and alternatives, projects can reduce their water footprint and contribute to improved water security in the region.
  4. Waste Management: The product lifespan lens examines P5 elements to evaluate the product lifespan's sustainability impacts. Through this lens, the project is encouraged to make use of sustainable materials and products that minimize waste generation throughout a project's lifecycle. Additionally, the Prosperity category promotes economic viability by considering the full costs and benefits of a project over its lifetime, including waste management costs.
Overall, by making use of the standard, all aspects of a project from design to implementation to end-of-life disposal using these correct terms, projects can contribute to more sustainable development outcomes in Southeast Asia.  Version 3 of the P5 Standard comes out in just a couple weeks!  Download the current version to be notified by email when it is ready, it is free!
Leadership Methods P5 Sustainability Value Management

Perspectives · Perspectives

The Project Profession and Biodiversity. We need to mind our impacts.

Dr. Joel Carboni February 18, 2023
For many years I have been getting on soapboxes at conferences and in keynotes stating that "the project profession" is waking up to sustainability but is not paying enough attention to bio-diversity.  If we could put in place regenerative practices, we could address many issues, including the climate crisis.

Biodiversity loss is one of humanity's most pressing environmental issues.

The main threats to biodiversity include habitat destruction, over-harvesting, pollution, and the introduction of invasive species. Habitat destruction caused by human activities such as logging, mining, and unsustainable agricultural practices has been the leading cause of biodiversity degradation. As land is cleared for these activities and topsoil is infused with deadly chemicals (cough cough Monsanto), species are forced out of their homes as their habitats are destroyed, and they can no longer survive in their natural environments. This has devastatingly affected species’ populations worldwide and is one of the biggest threats to biodiversity in the next ten years. Also, the overharvesting of animals for food or other purposes is a major driver of biodiversity loss. When more animals are taken from their environment than can be replaced through reproduction, this leads to a decline in population size, damaging ecosystems as entire species become threatened with extinction or go extinct altogether. In addition, overfishing of aquatic ecosystems poses an additional threat to biodiversity since it removes essential nutrients from water bodies that help sustain other forms of life.  In 2022 alone, 7 animals went extinct.  Check out the list here.

We can no longer behave as though we rule nature.

  We must accept that we are all interconnected and function as a steward for preservation. Our continued release of pollutants into air and water systems impacts local wildlife populations by reducing oxygen levels or contaminating food sources which can have devastating effects on entire ecosystems.Given this complex situation it’s important that we come up with ways to combat these threats if we want future generations to enjoy our planet's abundance.

What do we focus on climate change or biodiversity loss? The answer is both.  

Biodiversity loss and climate change are inextricably linked, with each exacerbating the other. Fossil fuels emit carbon dioxide which contributes to global warming and climate change while deforestation and everything else I shared earlier is caused by human actions and directly reduces biodiversity, has a significant impact on our climate. By disturbing natural habitats we reduce their ability to absorb carbon dioxide from the atmosphere and therefore increase its concentration. Conversely, climate change leads to more extreme weather events such as heatwaves, drought or floods which further threaten biodiversity due to their ability to disrupt or damage ecosystems. We must strive for effective conservation strategies and sustainable human activities if we are to preserve both biodiversity and our planet’s future.  It is much easier most people wrap our collective heads around direct impacts to bio-diversity than to understand how our work impacts climate change because we can see the effects immediately. Question for you the reader: have heard of the COP System and know where one of the last one was held?  If I said Montreal was the last one you might scratch your head and say "huh?"  There is more than one COP and the climate conference gets all the attention.  That is part of the problem. The climate COP has become the equivalency of Davos.  Meanwhile the Biodiversity COP gets no love, which is unfortunate.  

Take a look at the Nine Planetary Boundaries.

The nine planetary boundaries are: climate change, stratospheric ozone depletion, ocean acidification, land-use and freshwater use changes, nitrogen and phosphorous inputs to the biosphere and oceans, biogeochemical flows (such as phosphorus and nitrogen cycles), novel entities (including chemical pollution and microplastics), aerosol loading and biodiversity loss. These boundaries were identified by a team of international scientists in 2009 as essential for humanity’s survival on Earth. Crossing any of these boundaries could lead to serious long-term consequences and so scientists recommend avoiding reaching them at all costs. The green circle in the middle of the picture below is acceptable boundaries.  Climate Change is one boundary that we have gone beyond acceptable limits on.  Biosphere integrity however.... We have gone way beyond acceptable limits.  For more visit  the Stockholm Resilience Center.  

Ok, now what? Projects Projects Projects!

Projects present us with an opportunity when it comes to finding solutions for global biodiversity problems since they provide a framework for action while also offering opportunities for innovation and helping build capacity in local communities so everyone can benefit from successful initiatives like protected areas programs or sustainable agriculture practices. Here are three simple reasons why projects are so important when it comes to solving global problems surrounding endangered wildlife and habitats:

Projects provide a framework for taking action on specific issues related to conservation effort.

Increasing numbers of endangered species or restoring vital habitats like coral reefs while also bringing together stakeholders from different backgrounds who may not ordinarily interact with each other allowing us to explore new ideas and approaches that may not have been considered before . By creating a roadmap outlining clear goals that all participants must agree upon we know everyone is working towards same outcome giving us greater chance at achieving success .

Projects encourage innovation.

Leveraging diverse groups of people from different sectors allow us to examine complex ecological issues from different angle coming up with creative solutions that would otherwise be overlooked . For example bringing together business owners , policy makers , researchers , locals community members etc will enable us apply different skillsets resulting in more effective strategies being implemented .

Projects help build capacity for local communities.

Provide opportunities to develop sustainable methods to manage resources while also increasing economic benefits through launching eco-tourism schemes or sustainable agricultural practices These types initiatives allow locals gain livelihood directly related protecting wildlife ensuring sustainability long term goal ultimately benefit everybody involved. Taking steps towards preserving our planet’s precious biodiversity doesn't have be daunting task thanks tools available, such as our P5 Standard, P5 Impact Analysis, and Sustainability Management Plan).

What specific practices do we at GPM recommend? Here a sneak peak to some of the guidance in the new P5 Standard 3.0 for Biodiversity.

Projects should:
  • Work to achieve a net positive impact (NPI) by ensuring that any negative impacts from the project are outweighed by biodiversity gains.
  • Incorporating data-driven strategies for monitoring resource usage and predicting sustainable trends in natural ecosystems.
  • Establish living systems and regenerative land management practices to promote sustainable agriculture and forestry practices, and support the diversity of species.
  • Utilize integrated pest management techniques that prioritize natural predators over chemical pesticides to protect beneficial species, biodiversity, and human health.
  • Develop strategies for preserving habitat and species through specific protection measures, such as national parks, reserves, corridors, and conservation easements.
  • Take action to mitigate climate change by transitioning to renewable energy sources, reducing carbon emissions from fossil fuels, and restoring natural ecosystems for carbon sequestration purposes.
  • Implement collaborative approaches between local communities, corporations, academic institutions, and other stakeholders with a focus on advancing regenerative development goals for sustainable development initiatives & biodiversity conservation efforts.
Protection of biological diversity helps to achieve the following sustainable project outcomes:
  • Healthy ecosystems that protect food, fiber, medicines, and other potential resources.
  • Future access to land and other natural resources.
  • Improved reputation among regulators and within the communities that the project affects.
  • Continued availability of ecosystem services such as atmospheric regulation, nutrient cycling, and pollination.
We can do more.
Biodiversity loss Project Management

Perspectives · Competence

We need to stop spreading the false notion that only 35% of projects are successful.

Dr. Joel Carboni February 7, 2023

Sitting in my pajamas with a cup of coffee, I was ready to hit enter on a LinkedIn post stating that we need to stop spreading the false notion that only 35% of projects are successful. As I was about to press send, I realized this needed more discussion and thought before being shared. Therefore, let's start by putting an end to this myth. Yes. This is a myth.

It is silly.

Whenever I see an infographic on social media or a consultant using this number (or something similar, as the number commonly ranges from 30-35%) as a reason to justify their thought leadership, training, services, etc. I immediately think of the Ambulance chaser attorneys who feed on accident victims.  "If you have been injured in an accident, call so and s, law firm. All I do is win and get you the money you deserve!"  Now for my international colleagues, this is a phenomenon that every mid to major city in the US has. Their ads clog up our televisions and roadside billboards   Their ads look something like this.

Why am I so adamant about putting this silly notion to rest?

A few reasons:

  1. It is virtually impossible to accurately measure the success or failure of projects across the globe.
  2. Factors like culture, economic conditions, access to resources and political instability can greatly affect project outcomes, making it difficult to draw meaningful conclusions from global data, assuming you could harness it all.
  3. Different organizations have different definitions of what constitutes “success” - time, cost and scope are common criteria for measuring project success, but customer satisfaction, innovation, or impact may also be considered.

Where does this come from? The Standish Report.

The Standish Group's report on project failure rates is often cited as the most reliable source of information, however, there are several reasons why it may not be accurate. Here are six points to consider when evaluating the Standish Report:

  1. The report does not take into account the complexity of projects. Projects with more complex requirements and longer timelines have a higher risk of failure, yet the report does not differentiate between these types of projects.
  2. The report does not consider the impact of external factors such as changes in technology or economic conditions that could affect a project's success rate.
  3. The report relies heavily on self-reported data from organizations, which can be unreliable and biased.
  4. The report does not take into account the quality of project management practices, which can significantly influence success rates.
  5. The report only looks at IT projects, so it cannot provide an accurate picture of overall project failure rates across industries and sectors.
  6. The report has not been updated since 2015, so it may no longer reflect current trends in project success and failure rates.
Read the print below the figures. "The percentage of projects that were OnBudget from FY2011-2015 within the CHAOS database.  A sample size of 300 does not make a global benchmark.  Our studies on climate change impacting projects took data from 30,000 inputs and that is still a drop in the bucket.

Think about it for a moment

Do 65% of your projects fail to meet objectives? I used to track project success against the triple constraint and in my projects, and for a ten year span, projects I managed had a 93% success rate.  Am I an exceptional project manager? Well... of course. Does the collective of project management only succeed 35% of the time?  Maybe, maybe not.  We simply can't quantify it.  There are too many variables. Despite the complexity of different variables in each individual project, it is undeniable that failure rates exist. Organizations and businesses should take the initiative to analyze their own projects so they can learn from past mistakes, identify areas for improvement, and move forward more strategically. I am going to go back and enjoy my coffee.  Feel free to comment.  I would love to have your thoughts on this.
Competence Project Management project success Soapbox

Perspectives · Climate Change

We really need to talk about Pakistan

Dr. Joel Carboni January 28, 2023
Recently, many countries have experienced catastrophic flooding, but few countries have been hit as hard as Pakistan. Unfortunately, the attention this tragedy is receiving does not match its severity or scale. Many of us are too caught up in things that don't matter, such as Sarah Michelle Gellar and Freddie Prinze Jr's marriage or Justin Bieber selling his music to a streaming service.

Why am I writing a post about this and not a project management method or trend?

GPM is, first and foremost, a sustainability organization, and climate change is something that we must keep talking about. Extreme weather impacted more than 38% of projects in 2021 alone, and that number will keep increasing.  Make sense?

What is happening and why?

Pakistan has more than 7,000 glaciers. Climate change is melting them into floodwater. The flooding began in July of 2020 and affected large parts of South Asia, especially Pakistan. Floodwaters destroyed homes, forced thousands from their homes, and decimated crops throughout the region. It caused approximately $1 billion in losses, which is a devastating blow for a country that had already been struggling economically even before the pandemic. In 2022 the brunt of it after heavy monsoon rains and melting glaciers submerged one-third of the country, killing more than 1,700 and affecting 33 million people. 

Why is it not getting attention? A couple of reasons.

Two of the main reasons this has not received more attention is because of its location and its political situation. The international news media often focuses on stories closer to home or within the Western world, making it easy for stories outside those regions to be overlooked.  It is also because Pakistan is part of South Asia [yes, really] —a part of the world that doesn’t get much coverage—it can easily be forgotten about by people worldwide who don’t prioritize crises that don't impact their personal interest. [Yep, I said it.] In addition to inadequate coverage from international news outlets, another major issue is that insufficient donations have been made to help those affected by the floods. International aid organizations such as UNICEF are working hard to provide assistance. Still, without additional funds from other countries or individuals, it will be difficult for them to do so effectively. Likewise, local charities like The Citizens Foundation (TCF) are doing their best to help those affected by providing shelter kits and medical supplies. However, they again need additional resources if they want to provide further support for those still in need after several months since these events unfolded. The lack of attention towards this crisis is heartbreaking when one considers all that has been lost and what could have potentially been done had people stepped up sooner with donations or political pressure on their respective governments to do more. Beyond just needing money, though, what these people desperately need is hope. They need someone somewhere who cares enough about them to ensure they get back on their feet soon so that they can rebuild their lives again after such a terrible natural disaster has taken so much away from them. But... there simply isn’t enough awareness around this tragedy despite it being one of the worst natural disasters in recent history. Millions of people have been displaced due to flooding with significant economic losses suffered throughout South Asia – yet still very few people know anything about it beyond brief mentions here and there online or on TV shows/news programs that tend to gloss over tragedies like this one when talking about larger global issues happening today. If we truly wish for an equitable world, then we must start paying closer attention to issues like this one – donating where possible and using our voices/platforms wherever necessary.  Our hearts bleed for Ukraine. At the same time, we can't ignore what is happening elsewhere. Pakistan is responsible for less than 1% of global greenhouse but they are paying the price. Check out this news clip for a little more.

https://www.youtube.com/watch?v=DW0wizcTGds

Climate Change

Perspectives · Perspectives

What ESG Trends will Continue to Progress in 2023?

Dr. Joel Carboni January 16, 2023

Talking with colleagues and friends, I often get asked what I think is coming down the pike in the sustainability space.  As ESG is becoming increasingly important to companies, investors, and consumers, it's important to stay up to date on the latest developments in this rapidly evolving field. Here are the top five ESG trends and rising start we at GPM see in the coming year, along with the benefits and possible/perceived hurdles of each.

(Note, these are listed in random order.)

#1 Increased focus on diversity, equity, and inclusion

There is a growing recognition of the importance of diversity, equity, and inclusion in the workplace and society. This trend is expected to continue in 2023, with companies placing a greater emphasis on promoting diversity and addressing issues of inequality within their organizations.   Benefit: Promoting diversity and inclusion can lead to a more positive and inclusive company culture, which can in turn lead to better employee retention and satisfaction. It can also help a company appeal to a wider range of customers and stakeholders. Possible Hurdle: Implementing diversity, equity, and inclusion initiatives can require significant time and resources, and there may be initial costs associated with training and education. There is also the risk of backlash from those who may resist change. Truth be told, if any organization used this as an excuse, it should cease to exist.

#2 Increased demand for sustainable products and services

Consumers are becoming increasingly aware of the environmental and social impact of their purchases and are looking for products and services that are sustainably produced. This trend is expected to continue in 2023, with companies competing to offer more sustainable options to meet consumer demand.   Benefit: Offering sustainable products and services can help a company appeal to environmentally and socially conscious consumers, and it can also lead to cost savings through the use of more efficient processes and materials. Possible Hurdle: Developing and producing sustainable products and services can require significant time and resources, and there may be initial costs associated with research and development. There is also the risk of consumer skepticism, as some may be skeptical of greenwashing claims.

#3 Greater transparency and accountability

Companies are under increasing pressure to be transparent about their environmental and social practices, as well as their impact on stakeholders. This trend is expected to continue in 2023, with investors and consumers demanding greater accountability from companies in order to make informed decisions about their investments and purchases. Benefit: Greater transparency and accountability can help build trust with investors, employees, and other stakeholders, and it can also help a company identify and address any potential risks or challenges. Possible Hurdle: Being transparent and accountable can require significant time and resources, as a company may need to collect and share a large amount of data. There is also the risk of negative publicity if a company is found to be lacking in these areas.

#4 Rise of green bonds:

As concerns about climate change continue to grow, there is expected to be a surge in the issuance of green bonds in 2023. These bonds are issued by companies and governments to finance projects that have a positive environmental or social impact, and they offer investors the opportunity to align their investments with their values.   Benefit: Green bonds can provide a way for investors to support environmentally and socially responsible projects, and they can also help companies access new sources of funding for such initiatives. Possible Hurdle: Green bonds may have a higher risk profile than traditional bonds, as they are often issued by smaller, less established companies or for projects that may be less mature. There is also the risk of greenwashing, as some issuers may use the term "green bond" without meeting strict criteria.

#5 Growing importance of ESG data

The demand for accurate and comprehensive data on the environmental, social, and governance (ESG) performance of companies is expected to continue to grow in 2023. This trend is driven by the increasing importance of ESG issues to investors, consumers, and other stakeholders, who rely on such data to make informed decisions about their investments and purchases.   Benefit: Accurate and comprehensive ESG data can help investors and other stakeholders make informed decisions about their investments and purchases, and it can also help companies identify and address any potential risks or challenges related to their ESG performance. Possible Hurdle: Developing and maintaining reliable ESG data can require significant time and resources, as it may involve collecting and analyzing a large amount of data. There is also the risk of data inconsistencies or inaccuracies, which could lead to confusion or mistrust among investors and other stakeholders.

Rising Star: Bio-Diversity Factors

Human mismanagement of the environment  through resource extraction, intensive agriculture, and climate change — is precipitating a sixth great extinction of plants and animals in Earth’s history. Loss of biodiversity is now considered as serious as climate change, and investors are increasingly realizing that they have an important role to play in conserving it. As a result, biodiversity will continue its fastest ascent as an ESG theme in global capital markets. It is important to note though that Governments and regulators will be looking at how they can translate the COP15 agreement into national action, with business key to delivering the pledges in practice. This will mean increasing focus on local nature preservation, policies that encourage sustainable use of biodiversity and a move to mandatory disclosures by large organizations.  There is also likely to be increasing standardization of methodologies and frameworks to help organizations deliver on these requirements. All sectors and organizations are likely to be impacted by these changes, whether directly or through your value chain. Conservation alone will not be enough to reverse biodiversity loss: a transition to sustainable consumption and production models will be required. More to come!
Biodiversity loss COP15 ESG

Perspectives · ESG

What is a project sustainability impact assessment and how can it measure the value of social and environmental efforts?

Dr. Joel Carboni December 5, 2022

Do you measure and place value on Environmental, Social, and Economic impacts in your projects? If not, you should.

While outcomes matter to project owners, impacts are what matter to stakeholders. Stakeholders are a person, group, or organization that has interests in, or can affect, be affected by, or perceive themselves to be affected by, any aspect of a project, program, or portfolio. Hence, it is vital to understand what is important to them. As outlined in ISO 21502: Guidance on Project Management, examples of external stakeholders can include Customers, Regulatory Bodies, Interest groups, Users, Suppliers, Business Partners, Finance Partners, and Shareholders (we include biodiversity as a direct stakeholder). Project managers need to be aware of the interests of all their stakeholders and how to prioritize and take action based on a wide range of factors. When it comes to sustainability, a Project Sustainability Impact Analysis (we call it a P5 Impact Analysis) measures the impact of project activity. In effect, it is the project management equivalent to ethical stakeholder capitalism – and you should be adopting it.

Why is this important?

When done well, impact valuation covers both project-related activities' intended and unintended effects. This includes the project’s product, its lifespan, and servicing as well as project practices. By valuing positive and negative impacts more systematically and as thoroughly as possible, impact valuation can help the project team make decisions that create value for all stakeholders – resulting in sustainable project management and outcome. Impact valuation can also be viewed at the macro level as positively affecting the economy, the environment, and social well-being. Projects and Project Management Practices need to be framed regarding how they are contributing in favor of social and/or environmental goals.  

Measuring impact can be a challenging process

Here is how we do an impact valuation at GPM

GPM’s P5 Impact Assessment covers sustainability from 46 project sustainability elements that expand to 230 when viewed from the five lenses of Lifespan, Servicing, Efficiency, Fairness, and Effectiveness. Impact Valuations from a project perspective must be derived from the entire lifecycle starting with the business case concluding at the end of useful life and decommissioning and include all aspects of servicing. From the figure above, we focus on Lifespan and Servicing as well as Efficiency, Fairness, and Effectiveness of project processes as they relate to the 46 P5 Sustainability Elements in P5 version 2.0 The results should be scored using a simple likert scale to determine the severity not the priority.  An action item that has a low severity is still important and if it can be addressed quickly, with minimal effort, putting it off until a larger more severe issue is completed is not advised due to the fact that the range of issues being assessed span three separate domains (Social, Environmental, and Economic); and as such the action owner who is likely to be someone inside the business. Once the project team has scored the results, the items should be mapped into a sustainability management plan where the team develops mitigation strategies, gains approvals and then proceeds to have the work completed. This entire process is material to ESG and Sustainability reporting as it makes transparent “how” an organization delivers products and services sustainably. This process delivers valuable Impact!   Download the P5 Standard in 13 languages at www.greenprojectmanagement.org/p5
ESG GRI Reporting P5 Project Management Sustainability Reporting Value Management

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