SDG Ambition Benchmark Reference Sheets All

SDG AMBITION B E N C H M A R K R E F E R E N C E C O N S U LTAT I O N D R A F T
In partnership with:
BENCHMARK
GENDER BALANCE AT
ALL LEVELS OF MANAGEMENT
SDG IMPACT TIMELINE 2030 SCOPE Operations Products & Services Value Chain
1, 4, 8, 10, 16
Benchmark Information BUSINESS IMPACT ON GENDER

BALANCE IN LEADERSHIP
The gender balance at all levels of management benchmark helps Despite progress, women remain critically under-
organizations assess and achieve gender equity at all levels of leadership. represented in decision-making roles. Target Gender
Achieving this benchmark calls for a range of actions to create inclusive Equality, a UN Global Compact Impact Initiative, calls
workplaces. It requires business to address key barriers to women’s on and supports companies to set and meet ambitious
participation in the labour force and create an inclusive workplace where targets for women’s representation and leadership in
all employees are respected and empowered. In addition to recruitment business. Additionally, the Women’s Empowerment
targets, establishing gender balance goals for managerial positions greatly Principles (WEPs), outline business policies and
practices to level the playing field through gender-
enhances overall gender balance metrics. While SDG 5.5 calls for women’s
sensitive recruitment and retention, equal pay,
full and effective participation and equal opportunities for leadership,
equal access to training, networking and mentorship
including in economic life, by 2030, companies are encouraged to set more opportunities, support for working parents and
ambitious timelines to achieve gender balance in management. caregivers and establishing a zero-tolerance policy
against violence and harassment at the workplace.
Business leaders increasingly report that gender equality is a priority, Thousands of companies have signaled their
yet less than 30 per cent of companies have set time-bound, measurable support for the WEPs by signing the CEO Statement
goals and targets.1 Furthermore, as a direct result of the coronavirus of Support.
pandemic, women in the workforce were 28 per cent more likely to lose
their job compared to men.2 By setting ambitious targets and taking action
to achieve gender balance in business leadership, companies directly
contribute to the achievement of Global Goal 5: Gender Equality. 5% of companies globally have a female CEO 4
Further, a growing body of evidence supports the link between greater

gender diversity and improved environmental, social and governance (ESG)
performance. For example, one study found that having more women in
business leadership is associated with reduced greenhouse gas emissions,
26% of board seats globally are held by women5
stronger worker relations and reduced incidence of fraud.3
Among other things, in order to attract and retain top female talent,
businesses must focus on pipeline development, hiring and promotion, 25% of senior management consist of women6
adoption of inclusive workplace policies and performance reward

structures, family supportive practices, elimination of sexual harassment,
and offering equal pay for work of equal value.work of equal value.
Illustrative Industry Impact

Industrial Goods & Services: According to the the World Economic Technology: Today, women account for 25 per cent of computing-related
Forum (WEF), women’s representation in this sector is just 16 per cent.7 workforce and only 12 per cent were women of color in 2020.8 Adopting
However, there has been a steady increase in the share of female flexible work times, maintaining robust employee networks, and investing in
talent — women now make up the majority of the college-educated work- personal development programs can create inclusive pathways to achieve
force. Industry leaders must continue to work to make STEM careers more gender balance in the technology sector.9
attractive to female talent and adopt more inclusive workforce cultures.
G E N D E R BA L A N C E AT A L L L E V E LS O F M A N AG E M E N T
R A I SING AMBITION BU S I N ESS I N T EG R AT I O N
COMPANIES TAKING ACTION
UNILEVER ACCENTURE EAST AFRICAN

achieved their target of 50 per set bold goals to accelerate gender BREWERIES
cent of women at management equality. It is on track to achieve has implemented numerous policies
and leadership levels globally. A a gender-balanced workforce by and programs in support of women's
dedicated Diversity & Inclusion team 2025 — one that is equally 50 per cent empowerment, ranging from 50:50
has implemented a Global Diversity women and 50 per cent men for those hiring of men and women to female
Board and a network of nearly 100 whose gender is binary — and is on acceleration programs such as a
“Diversity & Inclusion Champions”, track to have women represent 30 per STEM apprenticeship and a Spirited
who have set the benchmark for how cent of the firm's managing directors Women Network.12
a community can power an inclusive by 2030.11
culture across markets.10
Assessing Against the Benchmark PRELIMINARY ACTIONS

Performance on the benchmark — achieving gender balance at all levels Secure top level support for gender equality:
of management by 2030 — can be assessed in line with the objectives of For example, signing the CEO Statement of
UN Women, Women’s Empowerment Principles and the Target Gender Support for the Women’s Empowerment Principles
Equality Initiative. Research by the WEF indicates that at the current pace, sends an important signal to your employees and
other stakeholders that gender equality is a priority
it will take 267.7 years to address the economic gender gap.13 However,
and can help establish buy-in from leaders across
establishing clear goals for achieving gender balance at leadership
the organization to take action.
positions can have a profound impact: having at least one woman in
senior leadership increases the proportion of women rapidly advancing Performance analysis: Assess your company’s
in organizations by almost 3 fold.14 Business that have not established gender equality performance on a regular basis
time-bound, measurable goals and targets for achieving gender balance at to take stock of progress towards women’s equal
all levels of management would fall below the SDG Ambition Benchmark. representation and leadership and identify
potential barriers and opportunities to accelerate
the pace of change. The WEPs Gender Gap
Analysis Tool is a free, confidential, online and
user-friendly diagnostic tool available at https://
Business Value weps-gapanalysis.org/
Companies that strive towards gender balance report higher

profitability. For example, achieving 30 per cent female representation
in leadership has shown to increase profitability by 15 per cent.15 A Sodexo
Gender Balance study also found that profitability, productivity and KEY RESOURCES
innovation were highest when management teams had a gender ratio of
40-60 per cent women, demonstrating that it is the gender balance that UNGC: Target Gender Equality
creates significant impact on effective management.16 But other business
WEP Gender Gap Analysis Tool
value drivers make a compelling case for adopting this target as well.
Visibly diverse workforces signal attractive workplace environments, World Economic Forum Gender Parity
which can translate to increased retention and leadership aspirations.
Accenture research found that creating a culture of equality would
help women feel that they are a key member of their team, increase
their retention and inspire ambition in women to reach a leadership
position.17 As consumers have clamored for better representation of
women in leadership roles, brands face a high reputational risk and
possible legal action if they do not prioritize gender balance and ensure
non-discrimination. In 2020, more than 21,000 gender discrimination
complaints were filed.18
R A I SIN G AM BITION B U S I NESS I NTEGR ATI O N
INTEGRATION COMPLEXITY* C-SUITE OWNERSHIP
Chief Human Resources Officer

and/or GenderEquality &
Understanding Integration Diversity Working Group
Business integration of this benchmark means
addressing the barriers and challenges to gender
balance in management positions of the organization. Journey towards Integration
Companies must create wholesale transparency over
direct indicators of gender imbalance such as headcount, Leading Human Resources (HR) systems and tools on
compensation and the recruitment pipeline. To drive the market today have the capabilities to integrate this
meaningful action and strengthen the retention pipeline, benchmark into core business. By pairing new processes
businesses must design systems to track hard-to- with specific functional design and activation (e.g.
measure barriers to balance, such as unconscious bias learning and recruiting) companies can enhance their
and structural inequality. It is important to acknowledge monitoring of challenge areas and drive action towards
that AI and other technologies can unintentionally gender balance. Business leaders should engage their
reinforce biases, making strategic decision-making with technology partners to pursue integration goals, such as:
regards to integration essential.
Real-time transparency
Creating a full, accessible and disaggregated view of
Illustrations of Integration gender diversity and equality based on real-time data per
departments, levels and locations.
FLEXIBLE WORKING ARRANGEMENTS
Going beyond policy creation and offering benefits,
companies need to measure uptake of flexible work Prediction and management of biases
plans and the culture change around them, such as Ensuring that data science and analytics identify
existing stigmas against men taking parental leave. sources of bias and track indicators, enabling real-
Research highlights that only 34 per cent of organiza- time adjustments.
tions train managers to support employees to utilize
flexible work arrangements, meaning many still lack the
confidence to use them.19 Companies can use systems
to track uptake and perception of these policies to drive Impact measurement and continuous
increased adoption and usage of these offerings in light of improvement
the significant impact they can have on gender balance for
a business. Tracking success of initiatives, identifying opportunity
areas to further drive workforce gender balance, and
implementing KPIs to evaluate changes at leadership
INTERVIEW PANELS levels and pipelines.
Efforts to recruit more women can be impaired by existing
structures of bias such as majority male interview panels.
Systems have the capacity to diversify interviewers
through automated selection and analysis of the gender-
balanced shortlisted candidates selected by those
individuals, which can have a large impact on recruitment
58% 39%
of organizations in of respondents to
balance. It is also necessary to regularly check with
the U.S. track hires, the WEPs Gender
employees in a sex-disaggregated way whether benefits Gap Analysis Tool
offered meet their needs. At Cisco, for example, diverse promotions and exits
by gender21 take proactive steps
interview panels increased the odds of making it through to recruit women in
the interview process by 50 per cent for Hispanic women traditionally under-
and 70 per cent for African-American women.20 represented roles.22
*See more in SDG Ambition Integration Guide chapter on Preparing for Integration
R A ISIN G AM BITION B U S I NESS I NTEGR ATIO N
SDG AMBITION APPROACH

VIEW THE
Example detail below follows the approach outlined in the SDG Ambition Integration Guide INTEGRATION GUIDE
and supports ideation for benchmark integration.
RAISING AMBITION
GENDER BALANCE AT ALL LEVELS OF MANAGEMENT
NEW GOAL IN LINE WITH BENCHMARK’S LEVEL OF AMBITION

PATHWAYS
WORKFORCE EQUALIZATION RETENTION & PROGRESSION RECRUITMENT

Analysis of existing compensation structures Focused talent management efforts to retain Increase gender equal pipeline through
and packages, and executing equal pay for and reward employees without strategic recruitment campaigns application
equal work discrimination or bias and interview decision making
EXAMPLE ACTIONS
Mandate Conduct Establish Implement Deliver Create Implement require- Invest in pipeline
equal pay for annual reporting/ policies that employee initiatives ments for gender development and
equal work compensa- remediation address training on encouraging diversity in candidate training to increase
by creating tion and processes systemic inclusion progression pools and interview female talent pool
a dedicated opportunity for breach barriers to and gender (e.g. panels especially in certain
corporate review and of protocols inclusion (e.g. equality, from leadership fields such as STEM
policy accredited flexible work leadership programs)
audit plans) down
GOALS
Implement policies that address

SUB
Eliminate gender pay gap Increase in recruitment balance

systemic barriers to inclusion
Fundamental: Salary and bonuses by Fundamental: Promotions by level by gender; Fundamental:Applications by level by
Employee turnover by category gender; New recruits by level by gender
METRICS*
level by gender
Aspirational: Employee benefits by gender Aspirational: Flexible work plans by gender; Aspirational: Interview panel composition;
and geography (e.g. health insurance, Hours of I&D gender training; Employee value Candidates interviewed by gender; Investment
subsidized transport etc.) by training in external training
PROCESSES
BUSINESS
HUMAN RESOURCES TIME & EXPENSES (T&E) TRAINING & CORPORATE MARKETING
/ PAY-AS-YOU-EARN DEVELOPMENT CITIZENSHIP
(PAYE)
INTEGRATING AND VISUALIZING CHALLENGING BIASES IN TALENT TARGETING RECRUITMENT

OPPORTUNITIES
HOLISTIC COMPENSATION GAP MANAGEMENT & STRUCTURE ACTIVITIES FOR BALANCE

Employee compensation data (e.g. salary, New processes and analytics tools to track “Recruiting” functionality in core HR
SYSTEM
bonuses, benefits) likely to be fragmented possible sources of bias (e.g. review panels, systems enable businesses to track data
across different systems. HR software uptake of flexible work plans) and leveraging related to recruitment efforts, including
solutions can pull into cohesive data set. learning systems to gain visibility over community engagement (external training,
employee decisions and possible progress marketing) to monitor impact of actions
KDD1 KDD2 KDD3

KEY DESIGN DECISIONS (KDD)
How might you create a holistic How might you automate the assessment How might you optimize recruitment
and real-time view of employee of bias across the business? efforts to increase pipeline diversity?
compensation? Creation of processes and systems to track Building systems to identify and optimize
The definition of the applicable data activities in areas where biases exist (e.g. recruitment activities for increasing female
structures and the right level of details will gender balance on panels, employee engage- applicants. This includes appropriate mapping
provide the ability to understand employee ment with unconscious bias training) to inform of recruitment initiatives, like career events,
total benefits (not just salary) and identify if impactful decision making and adjustments to to ensure impactful employee engagement
compensation and leadership gaps exist. current initiatives. tracked in the system.
BUSINESS INTEGRATION
* All KPIs and metrics listed are directional, drawing on existing reporting standards.
Each organization should adopt goal-setting measures aligned to their reporting methodologies and business context.
BUSINESS SYSTEMS DESIGN

How might you KDD1 How might you KDD3
create a holistic optimize recruit-
and real-time INTEGRATION COMPLEXITY ment efforts to INTEGRATION COMPLEXITY
view of employee increase pipeline

PEOPLE PEOPLE
compensation? PROCESS
diversity?
PROCESS
TECHNOLOGY TECHNOLOGY
Tracking gender balance requires Pursuing gender balance
multiple metrics, with the neces- demands investments in
sary data points often found across different business recruitment and pipeline development, ranging from
systems. Headcount data (turnover; promotion) is likely to skill development (e.g. women’s initiatives) to targeting
be held on central HR systems, whilst compensation data specific applicant pools (e.g. on-campus associations).
(salaries; bonuses; benefits) can be siloed on payroll or Just like any business initiative, the impact of these
time and expense platforms. activities can be measured. Blizzard Entertainment, the
video game publisher behind World of Warcraft, was
Enterprise software tools embedded with analytics capa-
able to increase its number of female interns by 166 per
bilities can enable companies to intelligently combine data
cent by reaching out to on-campus women-led groups
sets to gain a more real-time, granular view of employee
such as the “Women in Computer Science” club.24
data and visualize them in accessible dashboards.
Businesses can leverage recruiting modules in their core
HR systems to focus outreach in these ways and track
impact, as well as additional key indicators such as the
How might you KDD2 gender balance of employee representatives at career
automate the events. Companies should work with their technology
partners to design intelligent systems that can identify
assessment and INTEGRATION COMPLEXITY
opportunities such as women-led groups and assess their
management PEOPLE
potential return on investment through driving greater
of bias across PROCESS gender balance.
the business? TECHNOLOGY
1 Womens Empowerment Principles: Economic Forum, 2021.

Global Trends Report 2018
Many barriers to gender balance in 2 United Nations Global Compact-
14 When She Rises, We All Rise: Getting to
Equal 2018: Creating a culture where
an organization are cultural and structural, and therefore Accenture CEO Study. UN Global everyone thrives, Accenture
Compact, 2021.
15 Study: Firms with More Women in the
won’t be highlighted by traditional HR indicators. These 3 IFC C-Suite are More Profitable, Harvard
Business Review, 2016
include unconscious bias in talent management and job 4 Gender Equality Global Report &
Ranking, Equileap, 2022 16 Promoting gender balance for better
descriptions, differing standards and expectations in 5 Ibid.
outcomes, Sodexo
work patterns and parental leave, and alienating work- 6 Ibid.

17 The Hidden Value of Culture Makers,
Accenture, 2020
place cultures. 7 The Future of Jobs, World Economic
18 Sex-Based Charges, 1997–2019,
Forum, 2016
U.S. Equal Employment Opportunity
8 U.S. women in computing-related Commission
Companies and platform providers can identify and ad- occupations 2007-2020, by ethnicity,
19 When Women Thrive 2020, Mercer
J. Clement, 2022
dress such barriers through machine learning. AI powered 20 Diverse Representation Framework &
9 Creating a culture of equality in the
tools can identify biases in language of job postings and workplace, Accenture
Diverse Interview Panels , CEO Action
21 When Women Thrive 2020, Mercer
performance management and suggest alternatives.23 10 Advancing diversity and inclusion,
Unilever 22 Women’s Empowerment and Business
2022 Trends and Opportunities:
11 Accenture
Intermediary process steps can be taken among smaller Progress Amid Pandemic Challenges
Across Regions, UN Global Compact
12 https://unglobalcompact.org/
businesses such tracking interviewer diversity and take-action/target-gender-equality/
23 Textio Hire
case-studies-and-leader-profiles/
employee engagement in unconscious bias training. 13 The Global Gender Gap Report, World
24 Harvard Business Review
BENCHMARK
NET-POSITIVE WATER IMPACT

IN WATER-STRESSED BASINS
SDG IMPACT TIMELINE SCOPE Operations Products & Services Value Chain
11, 12, 13, 14, 17 50% by 2030
100% by 2050
Benchmark Information BUSINESS IMPACT ON WATER

Business is the largest user of water as nearly all
Adopting this benchmark helps business assess their water use
operations and supply chains rely on access to water.
and deliver net-positive water impact, especially in high water- 44 per cent of companies report substantive water
stressed areas, defined by WRI as an area where 40 per cent or risk in either direct operations or along the value
chain estimated at over 300 billion USD.3 More than
more available supply of water is withdrawn each year. This SDG 200 companies endorse the CEO Water Mandate to
Ambition Benchmark provides business with the strategic insights address global water challenges through corporate
water stewardship, in partnership with the UN,
and technical know-how to assess their freshwater impact across
governments, civil society organizations and other
its availability, quality and accessibility. It advocates for businesses stakeholders. The Mandate’s Water Resilience Coali-
to move beyond operational to measurable improvements of tion is an industry-led initiative focused on ambitious
commitments and collective action.
watersheds in proportion to their local water use and economic
impact in support of Goal 6: Clean Water and Sanitation. Companies
must set targets for direct operations water use in the short term, 59% of water is for industrial use in
high-income countries 4
supporting a pathway to 50 per cent fulfillment by 2030 and 100
per cent fulfillment of net-positive water by 2050.
69% of global freshwater use is agricultural 5
Assessing Against the Benchmark 3x We are losing wetlands 3x faster than

natural forests 6
Performance on the benchmark — sustainable withdrawals and

supply of freshwater by 2030 — can be assessed in line with the
ILLUSTRATIVE INDUSTRY IMPACT
United Nations SDG 6, “Clean Water & Sanitation”. The UN Global
Agriculture: 69 per cent of global water use is
Compact CEO Mandate and the Water Resilience Coalition further attributed to agriculture.7 The agricultural inputs
advocates for business to achieve net-positive water impact and required to produce beverages and food can add
water resilient value chains by 2050.1 As nearly two thirds of global up to hundreds of gallons of water for each unit of
food or beverage produced.8 Improving agricultural
freshwater consumption is associated with ingredient production efficiency in water-stressed regions is key to ensuring
for corporate supply chains, companies must extend responsibility a continued water supply.
for water consumption across the value chain.2 Businesses that Oil & Gas: 19 per cent of global water use is
industrial.9 In the oil and gas industry, water is used
have not established goals in line with achieving net-positive water
during extraction and hydraulic fracturing. Concern-
operations in water-stressed basins by 2050 as outlined above ingly, some of the most water-stressed regions in the
would fall below the SDG Ambition Benchmark. world are also major producers of oil and gas. Industry
leaders must actively manage their water risks to
ensure continued production.
N E T- P O S I T I V E WAT E R I M PACT I N WAT E R - ST R ES S E D BA S I N S

NOVARTIS LEVI STRAUSS & CO INTEL

set a 50 per cent water reduction committed to reducing water use is moving beyond their 2025 target
goal by 2025 vs. 2016 levels, moving in manufacturing by 50 per cent by of 100 per cent water restoration,
towards water neutrality in all 2025 in areas of water stress against setting a new 2030 goal to increase
operations by 2030. They have also a 2018 baseline. Their “Water<Less” their water conservation and achieve
pledged to enhance water quality in supplier targets will be applied to net-positive water use. This plan
all areas where they operate.10 all suppliers, responsible for 80 per includes funding external water
cent of LS&Co.’s production, via restoration projects.12
facility-level targets that address
local water stress.11
Business Value PRELIMINARY ACTIONS
Companies can reduce costs by conducting water-risk Adopt standardized measurements

assessments and subsequently reducing water usage. One and definitions: Companies use
various definitions and scoping boundar-
global beverage company saw savings of USD $300M over five
ies to report water use and wastewater
years following a risk assessment.13 Additionally, companies can information, making comparison and
further save costs and reduce risks by investing in wastewater benchmarking data difficult.
treatment and re-using water in direct operations or within their
ecosystem. These risks can also be mitigated by creating regional Incorporate water stewardship
partnerships and investing in basin health initiatives. One consumer into materiality assessments:
Assessing the risks, opportunities and
goods company implemented an intelligent water management
impacts associated with water across
plan in Colombia, which led to the construction of 10 water re-use your facilities and suppliers to inform
systems, enabled 160 sites for reforestation and initiated 27 local strategies.
community participation groups that train farmers on climate
resilience across 25 river basins.14
KEY RESOURCES
CEO Water Mandate

AQUASTAT
Aqueduct Alliance
Pacific Institute
International Institute for Sustainable Development


Chief Operations Officer
Understanding Integration Journey towards Integration

Progress towards a net-positive water impact demands Companies should assess their ability to integrate
advanced monitoring and management of water as a digital technologies and smart solutions into water
resource for the business, partners and communities. management strategies and systems. Engaging with
Pursuing operational efficiencies to abstract less, technology partners and third-party service providers,
but also identifying opportunities to protect access businesses can achieve:
and quality wherever the business impacts water
sources, relies on data-driven insights. Advancements
in technologies that enable real-time data flows, such
as the internet of things (IoT), artificial intelligence (AI) Automation of measurement and
and geospatial mapping, can help businesses address predictive action
their water impact, whilst increasing profitability. Leveraging digital tools for automatic monitoring of
Streamlining water quality monitoring through smart water usage and impacts, moving towards real-time
water technologies can save a standard utility company adjustments and action, such as changing pipe pressure
up to US $600 million annually, or 70 per cent of quality or alerting repair teams to prevent leaks.
monitoring costs.15
Optimization of water-efficiency and

maintenance of quality
Illustrations of Integration
Keeping water in use, either in operations, or through
LEAKS restoring quality after use for return to local
water sources.
Pairing sensors in water pipelines with real-time manage-
ment tools such as variable speed drives (to control
pressure), businesses can automate pressure reduction
and drive down water loss from leakages dramatically. Forecasting for targeted action
Water loss amounts to 126 billion cubic meters per year Collection of accurate operational and geographical
(expressed as non revenue water), valued at $39 billion.16 water data to inform risk assessments and modelling
regarding prioritization and capital allocation.
WATER-STRESS & RISK
Mapping areas of water-risk and local water challenges
supports effective prioritization of water stewardship
and access initiatives. Tyson Foods uses Aqueduct, an
open source tool from The World Resources Institute.
The company uses this tool to input data into their facility
$14B
prioritization process, which determines the level of
need for site water stewardship plans and targets. This The World Bank estimates $22.4B
the cost to utilities of water
data also lays the foundation for engaging outside the estimated market size by
lost before reaching the
company’s walls as they respond to shared water chal- consumer at approximately
202619
lenges in the watersheds where Tyson Foods operates $14 billion per annum18
and sources.17
* See more in SDG Ambition Integration Guide chapter on Preparing for Integration


VIEW THE
RAISING AMBITION
NET-POSITIVE WATER IMPACT IN WATER-STRESSED BASINS
WATER ACCESS
PATHWAYS
WATER QUANTITY WATER QUALITY

Reduce the amount of water required for business Improve water treatment to restore water quality, Protect local water sources to improve access to
activities, increasing reuse, recycling, and efficiency. reduce nutrient load and prevent pollution clean water for drinking, sanitation and hygiene
(WASH)
Improve water Improve Implement Implement Phase out Implement Implement Engage
EXAMPLE ACTIONS
efficiencies across efficiency of supplier targets and harmful chemicals policies and practices to with local
operations and products guidelines to solutions to increase in products and programs to understand communities,
invest in solutions and material enable more water treatment and production ensure clean and respond NGOS, and
that return water mix, during effective employ advanced WASH to company government
back to source production water technologies / in business impacts on to understand
(e.g. via optimiza- and management vendors to operations community and promote
tion, recycling, consump- processes reach targets WASH better WASH
reuse, optimizati tion outcomes
on through IoT)
GOALS
SUB
Total water consumption Water treatment rate Clean water access
Fundamental: Water use by source (freshwater Fundamental: Total water discharge; Total Fundamental: Population with access to clean
vs. other); Water use in stressed regions / suppliers discharge outside legal thresholds; Level of water water; Employees with access to safe water
METRICS*
in stressed regions; Water recycling rate treatment
Aspirational: Water use per unit of production; Aspirational: Water quality (e.g. chemical Aspirational: Local rate of waterborne diseases;
Water loss by cause, Supplier water use & policies composition) for all returned water; Suppliers taking action on WASH
Treated water by destination; Suppliers taking
action on water quality
PROCESSES
BUSINESS
MANUFACTURING PROCUREMENT LOGISTICS, WASTE SALES & ENVIRONMENT

OPERATIONS & & SUPPLY CHAIN TRANSPORTATION MANAGEMENT DISTRIBUTION MANAGEMENT
SAFETY & DISTRIBUTION MANAGEMENT
INCREASING VISIBILITY ENCOURAGING SUPPLIER INTEGRATE WITH SERVICE MAP LOCATIONS &
OVER CONSUMPTION IMPROVEMENT PROVIDERS TO ADVANCE FACILITIES FOR RISK AND
OPPORTUNITIES
Leverage smart water Create greater engagement & TREATMENT / RECYCLING OPPORTUNITY ANALYSIS
SYSTEM
management systems for transparency with suppliers Improve integration of solutions Improve understanding of areas
greater visibility e.g. cause of through supply chain from third-parties such as of operation and processes in
loss, moving to prediction and management tools water treatment and recycling place to support strategies
automation of action, including and technologies. companies to optimize impact as for water-stressed basins
processes for recycling and well as inform decisions elsewhere and identify opportunities for
re-use of water. such as product design. harvesting and replenishment.
KDD1 KDD2 KDD3 KDD4

How might smart manage- How might you facilitate How might you streamline How might you build an ag-
ment technology be best supplier assessment and data flows between service gregate picture of local water
integrated into water encourage improvement? providers and core systems of challenges and opportunities?
management systems? Identify tools to support water management? Use of geospatial tools to develop
Define most efficient water flow integration of supplier water Data flows can include water maps of water-stressed areas and
and the process for implement- data as well as share water quality analysis, volume and cost overlay footprint of internal and
ing and managing smart systems sustainability practices / incentiv- of recycled water to identify op- supplier operations.
and process the resulting data. ize improvement. portunities for improving efficiency
of water use and recycling.


How might smart How might you
management
KDD1 streamline data
KDD3
technology be best INTEGRATION COMPLEXITY
flows between INTEGRATION COMPLEXITY
integrated into PEOPLE service providers PEOPLE
water management PROCESS

and core systems of PROCESS
systems? TECHNOLOGY
water management? TECHNOLOGY
Smart water management solutions Companies may rely on service provid-
can be used to monitor conditions and ers for the management of activities
detect anomalies across water abstraction and consumption, such as water recycling and treatment. Creating data flows
such as a drop in pipeline pressure due to a leak or the detection between internal processes and service providers is important for
of contaminants or bacteria in the water. Designing systems to both reporting and decision making.
monitor this data and react in real time can significantly help Integrating water data with these external water management
reduce water loss or prevent discharge of contaminated water partners provides insights into the volume of water being treated,
into the environment. contaminants present prior to treatment, as well as water volume
These solutions rely on digital technologies such as sensors and and quality post treatment. This information can help identify
IoT. For business to capitalize on them, they must design core opportunities for water reuse across operations, but also highlight
systems for new processes of data collection and storage for the opportunities to change production processes or product design
increased volumes of data. Analytics and artificial intelligence- to reduce or eliminate contaminant byproducts.
enabled tools can then be used to maximize impact by producing
actionable insights and ultimately moving towards prediction
and automated action.
How might you facili- How might you build

tate supplier assess-
KDD2 an aggregate picture
KDD4
ment and encourage INTEGRATION COMPLEXITY
of local water INTEGRATION COMPLEXITY
improvement in PEOPLE challenges and PEOPLE
supplier water PROCESS opportunities? PROCESS

practices? TECHNOLOGY
The use of mapping technologies, paired
TECHNOLOGY
New supply chain management tools with your own water use data, can help
enable more agile interaction with identify areas in which operations have
suppliers to ease the burden of assessment, as well as enabling an outsized impact on local water avail-
companies to share best practices with their suppliers. ability (e.g. in water-stressed basins) and allow you to prioritize
targeted reduction and replenishment efforts.
For example, Nestle worked with Institute of Water Informatics
at LUMS University, Pakistan, to develop a cost-effective smart Similarly, understanding where your suppliers operate can drive
sensor for farmers in their supply chain. To complement the your supplier management strategy, such as having an increased
device, they created a free shareable software program which audit frequency for suppliers operating in water-stressed regions.
provides farmers with real-time irrigation updates, straight to
their smart devices.
1 Global Business Leaders Unite 7 UN Valuing Water Report 2021 13 Sustainable Investing: Revolutions in 17 How Tyson Foods Uses Aqueduct,
for Water Resilience, UN Global 8 Water Footprint Network Theory and Practice, Cary Krosinsky, World Resources Institute
Compact, 2020 Sophie Purdom, 2016 18 World Bank
9 AQUASTAT, UN FAO
2 Corporate water use, The Nature 14 CEO Water Mandate 19 Global Smart Water Management
Conservancy 10 Water, Novartis
15 Water 20/20: Bringing Smart Water Market Forecast to Reach USD
3 CDP Water Analysis Report 2020 11 2025 Water Action Strategy, Levi Meter Networks Into Focus, Sensus, 22.4 Billion by 2026, Research and
Strauss & Co. 2012 Markets
4 Other Uses and Types of Water, CDC
12 “Intel pledges ambitious water-use 16 Cost-Benefit Analysis of Leakage
5 The United Nations World Water goal by 2030: To go “net-positive,”
Development Report 2021 Reduction Methods in Water Supply
Fortune, 2020 Networks, 2020
6 CDP Water Analysis Report 2020

BENCHMARK
100% OF EMPLOYEES ACROSS THE

ORGANIZATION EARN A LIVING WAGE
1, 2, 3, 4, 5, 2030
10, 13
Benchmark Information BUSINESS IMPACT

ON LIVING WAGE
This benchmark calls businesses to pay all their employees — regardless of
their employment status — a living wage. This is defined as: “the remuneration More than 9,000 employers in the UK have
received for a standard workweek by a worker in a particular place sufficient been accredited and certified by the Living
to afford a decent standard of living for the worker and her or his dependents. Wage Foundation for paying a living wage.2
These leading employers and service providers
Elements of a decent standard of living include food, water, housing,
publicly join the independent movement
education, health care, transportation, clothing, and other essential needs
of organizations, businesses and people
including provision for unexpected events”.1
campaigning for a wage that is sufficient to live
Achieving this target requires that companies develop and incorporate on and also offers accreditation for the same.
different elements of a fair compensation policy. All departments in the
ACT (Action, Collaboration, Transformation)
company should get involved to ensure consistency in the implementation
is a ground-breaking agreement between
of the strategy.
global brands, retailers and trade unions to
Living wage underpins several of the Sustainable Development Goals transform the garment, textile and footwear
(SDGs), in particular Goal 1 “End poverty in all its forms everywhere” and industry and achieve living wages for workers
Goal 8 “Promote sustained, inclusive and sustainable economic growth, through collective bargaining at the industry
level linked to purchasing practices. ACT
full and productive employment and decent work for all”. Wages are
is a collaboration of 20 global companies
among the most important conditions of work and a major subject of
representing a broad range of brands and labels
collective bargaining.
and IndustriALL Global Union representing
Governments have an important role to play in wage fixing and supporting garment, textile and footwear workers from
wage-fixing mechanisms at a sectoral level. More than 170 countries have around the globe.
one or more minimum wages set through legislation or binding collective
agreements. In many countries however, companies must go beyond existing
legislation on wages because minimum wages do not always allow for a
decent living. Businesses can ensure that all their employees, regardless
19% of all workers worldwide do not earn enough
to escape poverty3
of their contractual arrangements, have the income to support their needs

and those of their dependents, raising standards of health and well-being.
Companies should strive to achieve this benchmark by 2030 in line with the
-3.7% decrease in normal weekly wages in the US
among workers in the lowest earnings decile
since 2000 4
2030 Agenda.
The scope of this ambition comprises employees and contractors in direct

employ of the business. However, the ambition should be progressively 19% of UN Global Compact respondents are
working towards living wages across
their operations 5
extended to a fair compensation commitment for all workers in the entire
supply chain of a company. This will require companies to adopt or improve
their procurement practices, and engage with relevant stakeholders,
including industry peers, suppliers, governments, workers’ organizations,
international organizations, investors, and civil society organizations.
Anchoring the work at the local level will be crucial for success.
1 0 0 % O F E M P LOY E ES AC R O S S T H E O R GA N I Z AT I O N E A R N A L I V I N G WAG E
INDITEX an independent organization that provides

a comprehensive and updated database that
initiated a global process to analyze wage
levels and employment practices against local
is committed to facilitating the provision of is used to define, build and deploy a living living wage standards set by BSR. To date the
a living wage to factory workers in its supply wage strategy. analysis has covered 63 countries, reaching
chain. In 2019, the company launched its 99 per cent of the Schneider footprint. This
“Workers at the Center 2019 – 2022” Strategy. L’ORÉAL takes into consideration various
partnership and process will continue and
It is based on the premise of understanding factors such as the local fertility rate and the
will progressively extend its scope to the
and responding to the needs of supply chain average number of incomes per household to
Schneider supplier network.
workers, their families and the communities calculate the living wage.
where they live to promote decent work and The living wage strategy complements the
sustainable productive environments. L’ORÉAL “Share & Care” existing programs
that provide employees worldwide with a set
UNILEVER
Living wage is one of the priority impact
areas identified within this strategy and it is of social benefits, including maternity and set the target in 2014 of creating a structured
developed across four lines of work: paternity leave, access to reimbursed medical way to define and assess how the elements
treatments, disability insurance. of their compensation packages deliver
▪ Promoting and facilitating collective
compensation to all employees which is open,
bargaining L’ORÉAL plans to engage their strategic
fair, consistent and explainable. By the end of
suppliers as part of their “extended company”
▪ Effectively implementing responsible 2019, Unilever was paying at or above the liv-
to implement a living wage for their employees
purchasing practices ing wage in most places and actively working
as for other pillars of their sustainable
▪ Enhancing the production of organization through a small number of remaining issues in
sourcing strategy (social audits, environment,
systems and methods areas with complex pay arrangements.
inclusive sourcing).
▪ Improving management systems and wage The result was a Framework for Fair
The implementation of a living wage strategy
digitization Compensation and a commitment to paying a
worldwide is a challenge, and L’ORÉAL is using
Inditex is an active member of ACT living wage that gives their employees enough
its leverage to embark other companies and
(Action, Collaboration, Transformation) to “provide for their dependents’ basic needs,
stakeholders in this journey, including through
on Living Wages. for food, housing, education and healthcare as
collaborative platforms such as the Business
well as some discretionary income”.
For Inclusive Growth (B4IG).
Since 2015, Unilever has worked closely
L’ORÉAL with the Fair Wage Network as an objective

external source of the living wage value for
In 2020, L’ORÉAL Group made two commit- SCHNEIDER ELECTRIC each of the countries with employees. Unilever
ments regarding living wages: uses these thresholds to assess whether the
In line with its Human Rights Policy and
1) In its Employee Human Rights Policy, Principles of Responsibility, Schneider Electric fixed compensation paid to all full-time direct
L’ORÉAL commits to pay all its employees at believes earning a decent wage is a basic employees (including factory and non-factory
least a living wage covering their basic needs human right. Schneider is committed to paying employees) in each country is meeting the
and calculated in line with best practices, as employees in the lower salary ranges at or living wage standard.
soon as possible. above the living wage to meet their families’ Unilever also promotes fair wages through the
basic needs. By basic needs, the Group value chain by embedding fair wage assess-
2) In the L’ORÉAL for the Future program,
considers food, housing, sanitation, education, ments into their Responsible Sourcing Policy,
L’ORÉAL commits to having 100 per cent of its
healthcare plus discretionary income for a identifying incidents where fair wages are not
strategic suppliers’ employees being paid at
given local standard of living. paid. Reaching a Living Wage is currently a
least a living wage covering their basic needs
and those of their dependents, calculated in In 2018, Schneider started working with an good practice benchmark of the Responsible
line with best practices, by 2030. independent advisor — Business for Social Sourcing Policy which suppliers are expected
Responsibility (BSR) — to implement a living to work towards.
L’ORÉAL developed partnerships with
wage commitment. Schneider Electric has
experts, including the Fair Wage Network,
COLLECTIVE BARGAINING
Wage scales are often set by collective agreements. They are determined in con- In principle, wage levels set by collective agreements are at the level of a living
sultation with workers or workers’ representatives through collective bargaining. wage or above, which enables the covered employees to afford at least the basic
Sound collective bargaining practices ensure that employers and workers have needs. But it is possible that collective bargaining is too weak, for example,
an equal voice in negotiations and that the outcome is fair and equitable. It allows because workers are not organized enough to represent their voice at the
both sides to negotiate a fair employment relationship, including a fair wage. bargaining table. This can result in wage levels set by collective agreements that
Collective bargaining can take place at an enterprise-level or a sectoral level. are too low to be considered as a living wage.
RAISING AMBITION BU S I N ESS I N T EG R AT I O N
Assessing Against the Benchmark ILLUSTRATIVE

INDUSTRY IMPACT
Performance on the benchmark — implementing a living wage for
Retail: According to IndustriALL, more than 90 per cent
employees across the organization by 2030 — should be assessed of workers in the textile industry have no possibility of
by calculating the gap between current wages and living wages for negotiating their salaries or working conditions. 11 The
every region in which you have business operations. Estimated values garment industry is traditionally a low paying industry
with poor working conditions. A fundamental change
of a living wage, or living wage thresholds, are published per region by
based on an industry wide collaborative effort by all
various organizations using their own methodologies.6 In many regions, stakeholders will be needed to provide relief to workers
these living wage thresholds are higher than the legal minimum wage or from poverty wages and crippling working hours.
poverty-line wage. The achievement of the benchmark will be part of the Hospitality: Hospitality and tourism account for 330
responsibility of companies to respect workers’ rights and contribute to million jobs, one in 10 in the world. 12 The industry has
decent work priorities in compliance with international labour standards the highest proportion of jobs paying the minimum wage
of any sector, at around 30 per cent of the total. 13 Given
of the ILO.7
that minimum wage does not always allow for decent
standards of living, implementing living wage, benefits
Being employed does not preclude living in poverty. In 2019, more than and other worker protections in hospitality would have a
630 million workers worldwide — almost one in five of all those employed significant impact.
— did not earn enough to lift themselves and their families out of extreme
or moderate poverty.8 Businesses that have not established time-bound,
measurable goals and targets for paying a living wage to all employees
by 2030 would fall below the SDG Ambition Benchmark. PRELIMINARY ACTIONS
Develop an overall fair wage strategy: The Living
For additional detail on determining a living wage, consult the Living Wage benchmark is part of a company’s compensation
Wage Supplement. policy. A fair compensation policy encompasses typical
sustainability dimensions like living wage and equal salary
but is far more comprehensive and includes other wage
practices and pay systems indicators. For example, wages
should be adjusted to economic and social indicators,
Business Value paid regularly and formally in full, workers are fully
informed about their wage, wage progresses proportion-
ally along with enterprise sales and profit growth and
Committing to being a living wage employer supports a happier, healthier wages progress along with changes in intensity at work,
and more productive workforce, reduces turnover costs and addresses technological contents and the evolving skills and tasks of
the labour force. 14
consumer, customer, investor, and shareholder concerns about a
company’s respect for workers’ rights. Conduct due diligence across your direct and
indirect operations: As part of the business responsibil-
One company found that during the first year of ensuring a living wage for ity to protect and respect human rights outlined in the
UN Guiding Principles on Business and Human Rights,
their sub-contracting staff, turnover in their cleaning staff dropped from working poverty caused by low wages in the workplace
44 per cent to 27 per cent. Absenteeism also dropped by 10 per cent.9 and supply chains should be reflected in business human
According to a study of 800 accredited living wage businesses in the rights due diligence approaches. 15
UK conducted by Living Wage Foundation and Cardiff Business School, Engage in Social Dialogue Process: Achieving this
living wages can produce a more productive workforce: 57 per cent of target requires a systematic assessment and a strong
social dialogue on the level of the wages paid across all
companies said it increased the commitment and motivation of their
locations where a business operates, mandating salaries
employees; 86 per cent felt it enhanced the company’s reputation; 64 per are set at or above the Living Wage benchmark.
cent said it differentiated their organization from others in the industry.10
Understand the impact of supply chain
management on wages: It might be challenging for
a company to ensure the payment of living wages in
global supply chains for a number of reasons. In many
cases it is not the legal employer; the first or second tier
KEY RESOURCES supplier is. Purchasing practices between the buyers
and the suppliers however influence wages and working
conditions. 16 Buyers can put pressure on suppliers in
International Labour Organization BSR
terms of timeline, prices, technical specifications, and
The Anker Methodology Ethical Trading Initiative delivery, which have direct effects on suppliers’ capacity
to provide living wages and decent working conditions. It is
IDH ACT important to better understand how buying prices relate
The Global Living Wage Coalition Ergon Associates to wages. Collaborative action at the industry-level and
the engagement and collaboration of key stakeholders is
Oxfam Wage indicator Foundation crucial to building leverage at the national level to ensure
The Fair Wage Network a living wage for all workers.

Understanding Integration Illustrations of Integration

This section provides directional guidance on how you can STREAMLINING ASSESSMENT
design your technology systems to support the integration
of a living wage methodology and calculation into your Once a calculation methodology is selected to define the
corporate wage strategy. A company must take a number Living Wage benchmark for the business’ different areas
of crucial steps to achieve this, from identifying a definition of operation, an assessment of all wage levels globally
and calculation methodology to building leadership for all direct employees is required to identify how many
support and budget approval. Alongside these, companies of your staff are paid a living wage or above. This means
must seek to hardwire the new threshold, based on identifying all of your employees and their current pay
a defined calculation methodology, into core Human levels for all types of contracts (current salary levels of
Resources and resource planning software to ensure full-time employees, part-time and temporary workers,
employee wage decisions in all functions and markets contractors’ employees that work on the company’s
are informed by a consideration for a living wage. premises, etc.). This will include consultation with
different units at the country level and can be initiated
By using technologies such as analytics and machine
via a survey. A decision will need to be taken on how wage
learning, companies can not only build the living wage
levels are defined and calculated such as if the calcula-
benchmark into wage strategies but can also automate
tion takes into account non-mandatory benefits, such as
the calculation based on changing macroeconomic
extended health benefits that the employer may provide,
data (e.g. cost of living) and assessments of compliance
bonuses, or in kind payments.
across the business. Streamlining these processes
supports the implementation of the benchmark and drives Businesses can leverage intelligent functionality in
accountability for adherence and progress. Human Resources systems. Hardwiring the living wage
calculation and threshold into these tools enable ef-
ficient assessments that inform more impactful decision
making as a business seeks to transition any employers
Journey towards Integration currently not earning a living wage.
By engaging with technology partners, companies
can design systems that make living wage part of the AUTOMATE REVIEW AND UPDATES
processes that underpin corporate wage structures. In
As the living wage calculation is based on changing
doing so, you should strive for:
indicators in different markets — such as regional cost of
living, taxes,cost and availability of public services
Dynamic compensation systems — it is crucial for companies to establish processes for
overhaul of HR compensation systems that transition monitoring and updating the living wage levels to reflect
from static wage reviews to periodical, dynamic wage these changes. Companies should design systems to
setters for the entire workforce. leverage digital tools such as machine learning, which
can automate the data flows for these indicators, in order
to conduct these updates regularly and reliably.
Actionable insights
leveraging analytics tools to provide quick views of
progress towards the living wage across functions and
geographies to inform decision making.
8%
of 200 brands reviewed by the Fashion Revolution’s
Fashion Transparency Index report on any annual
progress towards living wages 17
Employee engagement and sensitization
developing processes for communication on living wage
commitment with staff and external stakeholders to
reach global coverage and no new hires below living wage. * See more in SDG Ambition Integration Guide chapter on Preparing for Integration

VIEW THE
RAISING AMBITION
100% OF EMPLOYEES ACROSS THE ORGANIZATION EARN A LIVING WAGE

PATHWAYS
WORKFORCE MANAGEMENT POLICY EXTENSION & ADVOCACY

Assess living wage in all areas of operation, and raise wage for Scaling and global outreach, cascade the policy
all employees who fall under respective minimum beyond direct employees to influence business
partners, contractors and other companies
Decide on the definition Develop internal man- Ongoing monitoring of Awareness Engage with Engage with Engage with relevant
EXAMPLE ACTIONS
and calculation agement procedures, the living wage levels raising and contractors procurement stakeholders, includ-
methodology, and working group across to reflect changes in communication about their and supply chain ing industry peers,
identify a reliable functions such as the cost of living, taxes, on living wage wage policies departments to suppliers,
external partner to Human Resources, credits and the cost and commitment discuss the impact Governments,
support set up of Legal, Purchasing and availability of public with staff of purchasing workers’ organiza-
operational processes Procurement services and external practices on wages tions, international
stakeholders in the supply chain organizations, inves-
to reach global tors, and civil society
coverage organizations
GOALS
Procurement staff trained on sustainable sourcing and the link

SUB
Employees paid a living wage

between purchasing practices and wages
Fundamental: Employees below living wage; Employees on living wage Fundamental: Adoption of sustainable procurement practices by
department; Contractors engaged on living wage policies; Suppliers engaged
METRICS*
Aspirational: Annual breaches of living wage policy on living wage policies
Aspirational: Suppliers providing a living wage; Contractors hired

on/above living wage
PROCESSES
BUSINESS
COMPENSATION HR ADMINISTRATION PROCUREMENT LEGAL &

ADMINISTRATION & SUPPLY CHAIN COMPLIANCE
OPPORTUNITIES
AUTOMATE BENCHMARK CALCULATION WITH MACHINE LEARNING FOR SUPPLIER ASSESSMENT

REAL-TIME REVIEW AND UPDATES AND RISK CATEGORIZATION
SYSTEM
Tools and core systems can be designed to make calculations for all Supplier data and characteristics can help identify partners or suppliers
employees, as well as automate reviews and provide real-time flags of that may be at greater risk of not providing living wages.
breaches of the living wage policy.
KDD1 KDD2
How might you embed the living wage calculation into core How might you evaluate your supplier network’s compensation
HR systems and automate updates based on real-time policies and encourage supplier improvement?
macroeconomic data? Companies can tackle opaque supply chains by leveraging digital tools to
Once a living wage methodology is adopted and metrics for calculation produce risk profiles on suppliers based on areas of operation and products
defined, companies can leverage tools enabled by analytics and machine sold. Supplier improvement program can be formulated on supply chain
learning to automate the calculation of the benchmark, provide alerts in management tools to engage a company’s most critical partners on
instances of non-compliance, and also pull in real-time data on indicators opportunities to improve their compensation policies and ultimately achieve
such as regional cost of living to ensure the living wage calculation remains living wage coverage.
up-to-date in all areas of operation.

How might you KDD1 How might you KDD2
embed the living evaluate your sup-
wage calcula- INTEGRATION COMPLEXITY plier network’s INTEGRATION COMPLEXITY
tion into core compensation

PEOPLE PEOPLE
HR systems and PROCESS

policies and en- PROCESS
automate updates TECHNOLOGY

courage supplier TECHNOLOGY
based on real-time improvement?

macroeconomic data? This benchmark is focused on direct employees and does
Once a living wage methodology is adopted and metrics not cover the extension of the living wage to business
for calculation defined, companies can leverage tools partners or suppliers. However, companies do have the
enabled by analytics and machine learning to automate opportunity to design business systems for the encour-
the calculation of the benchmark, provide alerts in agement of better compensation policies among their
instances of non-compliance, and pull in real-time data partners and peers and should do so when possible. For
on indicators such as regional cost of living to ensure the example, by leveraging digital-enabled risk assessment
living wage calculation remains up-to-date in all areas tools to create supplier risk profiles, companies
of operation. can map partners with higher human rights risks to
inform sourcing decisions as well as preventative and
Embedding the threshold in core HR systems is essential mitigating action.18
to build awareness of living wage and salary require-
ments for recruiting teams as well as employees. Making In addition, companies can use learning management
living wage information available alongside hiring bands systems to engage procurement staff on purchasing
and other relevant recruiting details is an initial step that practices focused on encouraging more progressive
helps decision-makers compare their hiring requirements compensation structures in suppliers. The ACT Account-
against a living wage goal and adjust accordingly, ensur- ability and Monitoring framework provides ACT member
ing all new hires are employed on a living wage or above. brands with an agreed set of indicators and monitoring
instruments to implement their purchasing practice
commitments, which can be embedded in procurement
systems and training processes.19
1 There is no universally agreed 3 ILO Compact Decent Work in Global the right to just and favourable
definition of a living wage as a Supply Chains Action Platform. remuneration ensuring for
4 Pew Research Center
concept and there is no universally himself and his family an existence
8 International Labour Organization
accepted amount that defines such 5 Uniting Business in the Decade worthy of human dignity, and
(ILO)
remuneration. The definition used of Action. UN Global Compact, supplemented, if necessary, by
in this document is based on the 2020. — Calculation: 22 per cent of 9 Livingwage.org other means of social protection”
definition of the Global Living Wage companies report to priorities SDG (Article 23: 1,3).
Coalition and incorporates the 10 Living Wage Foundation
1, of these, 85 per cent implement
16 Purchasing practices and working
main ideas found in over 60 living and promote a living wage. 11 IndustriALL conditions in global supply chains:
wage descriptions and definitions
6 The Sustainable Trade 12 World Travel and Tourism Council Global Survey results, ILO, 2017
from human rights declarations;
national constitutions; NGO, Initiative (IDH) has developed a
13 Deutsche Bank Market Research 17 Fashion Revolution
multinational, and corporate codes set of objective criteria for the
of conduct; International Labour minimum elements a Living Wage 14 Fair Wage Network — 12 Fair Wage 18 OECD
Organization (ILO) documents; benchmark methodology should Dimensions 19 ACT
and statements of major historical include to be reliable.
15 Earning a living wage is a basic
figures (Anker 2011). 7 See also “Decent Work Toolkit human right as included in the
2 Living Wage Foundation for Sustainable Procurement”, Universal Declaration of Human
developed by the UN Global Rights: “Everyone who works has
BENCHMARK
100% SUSTAINABLE MATERIAL INPUTS THAT

ARE RENEWABLE, RECYCLABLE OR REUSABLE
6, 9, 11, 13, 14,
15, 17
Benchmark Information BUSINESS IMPACT ON

SUSTAINABLE INPUTS
This benchmark helps embed circular economy practices into material selection
and product design. This benchmark specifically applies to product and The trajectory of annual global resource use
packaging design — ensuring those materials and feedstocks are 100 per cent is on track to exceed the planet’s available
sustainable to the highest possible environmental and social standards — within resources by over three times each year by
the scope of business operations and products and services. The objective is to 2050.4 Product design is often biased towards
design for continued material use so that economic activity is decoupled from single-use materials: 40 per cent of all plastics
resource extraction. This benchmark follows the timeline of 2030 set by SDG 12: globally are used for single use packaging.5
Responsible Consumption and Production. However, working towards this benchmark
offers a transformative opportunity to
shift towards a circular economy (CE) that
benefits consumers, investors, and the planet.
Assessing Against the Benchmark

Accenture has assessed circular business
models could unlock $4.5 trillion in value by
Performance against the benchmark — percentage of sustainable inputs by the 2030.6 The Ellen Macarthur Foundation (EMF)
year 2030 — can be assessed in line with the targets identified in SDG 12 and guid- brings together business, innovators, cities and
governments, universities, and thought leaders
ance from the UN Global Compact’s Advisory Group on Supply Chain Sustainability.
on circular economy topics. It counts over 160
Companies should strive to make advances in their product design via channels
companies as members.7
including resource efficiency, materials recycling, identifying and selecting the
most renewable inputs possible, and when possible certifying these outcomes with
leading third-party certification programs. Businesses that have not established
goals in line with achieving 100 per cent sustainable inputs by 2030 in line with
Agenda 2030 would fall below the SDG Ambition Benchmark.
9% only 9 per cent of the 92.8 billion tons
of minerals, fossil fuels, metals and
biomass that enter the economy
annually are re-used in some way 8
Business Value
Circular models are particularly attractive for the value at stake for business: for
90% of the environmental impact of the
average product sits in extracting
and refining material inputs9
instance, shifting to circular inputs in the fashion industry offers an opportunity
of $30 to 90 billion (3 to 8 per cent of EBITDA) by 2030.1 In some instances,
companies can reduce acquisition costs by replacing traditional materials with
renewable alternatives. One global furniture company uses rice straw, a production €600B could be saved on primary resources by
EU businesses by 2030 by transitioning
byproduct, as a material input, which reduces burning of this fiber that would
to a circular economy10
otherwise be considered waste and reduces air pollution and production costs.2
Designing for sustainable inputs can also spur product innovation that drives
growth: one plant-based meat company was recently valued at $4 billion,
a reflection of growing market interest in alternative proteins.3
1 0 0 % S U S TA I N A B L E M AT E R I A L I N P U T S T H AT A R E R E N E WA B L E ,
RECYCLABLE OR REUSABLE
IKEA SCHNEIDER ELECTRIC MATTEL

is on a mission to become a 100 per has set a goal of all new products recently announced a new goal of
cent circular company by 2030, being “eco-designed”: created to 100 per cent recycled, recyclable or
committing to designing all of their be easily repaired, upgraded and bio-based plastics in products and
products using only renewable or dismantled at end-of-life. They packaging by 2030. They work with
recycled materials. They are also provide product profiles so that cus- the Forest Stewardship Council to
aiming to eradicate single-use tomers can understand the product’s source paper and wood inputs; cur-
plastics by the end of 2020.11 carbon footprint, which also include rently 93 per cent of their products
end-of-life instructions.12 and packaging are FSC certified and
will debut their first 100 per cent
sustainably sourced product made of
sugarcane plastic in 2020.13

Electronics: 53.6 million metric tonnes Retail and Fashion: 64 per cent of the Consumer Goods: Single-use plastic
of e-waste is generated worldwide, up 32B garments produced each year end packaging accounts for about half of the
21 per cent in the past 5 years, while only up in a landfill;15 less than 1 per cent is plastic waste in the world.18 Packaging
17.4 per cent of e-waste was officially recycled to make new clothing.16 Current is a major opportunity area for consumer
documented as properly collected and industry practices favor material blends goods companies to introduce circularity;
recycled in 2019.14 This is harmful to the and chemicals which make it difficult to packaging should be designed to be recov-
environment and human health: a total of retain the value of the material and around erable and recyclable. 63 per cent of CDP
50t of mercury and 71kt of brominated 60 per cent of textiles are not recyclable respondents reported investing in circular
flame retardant (BFR) plastic are found in in the first place.17 Products designed with technologies such as depolymerization,
globally undocumented flows of e-waste sustainable inputs, choosing fiber inputs which can break down finished fibers in raw
annually, which are released into the with lower environmental impact, and materials for re-use.19
environment and exposed to workers. taking back used clothing are some of the
Designing to limit waste in the electronics ways fashion can integrate CE practices
industry, combined with closed material into their business.
loop supply chains and virgin material
reduction are some ways to achieve this
benchmark for the industry.
PRELIMINARY ACTIONS through their entire life cycle, including

climate impact, ease of recycling and the KEY RESOURCES
Evaluate design processes: Product de- material’s potential for renewal. Identify
sign methodologies must be re-examined potential alternatives for material inputs The Circular Economy Handbook
to incorporate circular material input. without the potential for reuse or recycling.
Ellen MacArthur Foundation
Material specification can be adapted to
more sustainable inputs for existing and Determine the scope: Evaluate your Platform for Accelerating
new product categories. supply chain for opportunities to create the Circular Economy
material loops to recycle and reuse virgin World Resources Institute
Life cycle assessment to determine material. The resulting materials could be
sold externally or re-integrated into the Circular Design Guide
environmental impact: Conduct a
life cycle assessment to evaluate the existing business.
environmental impact of material inputs

Chief Design Officer

To decouple economic growth from resource use, and PRODUCT ASSESSMENT
transition to a circular economy, companies must embed
There are multiple solutions in the market that aim to sup-
sustainability at the heart of product design. For most,
port circular product design, including free LCA software.20
the central considerations in product and packaging
Assessing recyclability of products for some industries
development remain productivity and cost-efficiency.
can be particularly challenging due to complications of
However, faced by mounting consumer and policy pressures
attributes such as material blends. Designing core systems
on topics such as single-use plastics, and as more
to integrate sophisticated tools in product assessment
businesses recognize the opportunity in circular business
will drive more impactful decisions for sustainable product
models, there has been a drive to understand the impacts
portfolios. Circular economy experts at The Ellen MacAr-
across a product’s lifecycle, from raw material extraction
thur Foundation developed a Material Circularity Indicator
to end-of-use. As these considerations are integrated into
(MCI) tool in collaboration with Granta Design, which
core product design and material management systems,
measures how restorative the material flows of a product
leveraging tools built on life cycle assessment (LCA)
are and can be aggregated up to product portfolio, and even
methodologies, businesses can set product and packaging
further up to company level.21
guidelines, encourage innovation, and influence suppliers.
MATERIAL SELECTION
Moving away from virgin and unsustainable feedstocks
Journey towards Integration requires integration of circular principles into the procure-
ment and supplier management processes. Google is
Driving progress towards 100 per cent sustainable building a tool, in partnership with fashion brand Stella
inputs, companies should work to design systems McCartney and World Wildlife Fund (WWF), that uses data
focused on: analytics and machine learning on Google Cloud to give
brands a more comprehensive view into their supply chain,
particularly at the level of raw material production. Com-
Embedding circular principles in prod-
bining Google’s digital tools with their partners’ respective
uct assessment process industry and sustainability expertise, the ambition is to
Integrating tools to understand the circularity and create a data-enriched decision-making platform, bringing
sustainability of products. visibility to supply chains.22
Defining guidelines and targets for

individual products and the full portfolio
Updating sourcing strategy and guidelines for materials
used in products and packaging. 39% $2–3B
of companies believe value opportunity of best
they are developing practices in packaging
Gaining visibility over suppliers products and services design with sustainable
that contribute to the end-use objectives across
and feedstocks SDGs23 OECD companies
Developing methods for assessing and monitoring

compliance with suppliers with sustainable materials
sourcing policies. * See more in SDG Ambition Integration Guide chapter on Preparing for Integration

VIEW THE
RAISING AMBITION
100% SUSTAINABLE MATERIAL INPUTS THAT ARE RENEWABLE, RECYCLABLE OR REUSABLE

PATHWAYS
PRODUCT ASSESSMENT SOURCING

Embedding re-use and recyclability into design and material Incorporate recycled and renewable materials
selection processes and feedstocks at scale
EXAMPLE ACTIONS
Mandate recyclability assess- Implement product design criteria Implement procurement require- Increase waste collection
ments of products/services to that require the use of recycled ments to expand supplier base across the value chain through
test ability for end-of-life sorting, and renewable material inputs, that meet new sourcing criteria collaboration with partners (e.g.
processing and recovery durability and recyclability of manufacturers, retailers) to
products identify and support collection
and processing for recycled
materials into products
GOALS
Increase in products which have achieved

SUB
Increase in sustainable material inputs by spend and volume

100% sustainable or circular inputs
Fundamental: Materials that are used to produce and package products and Fundamental: Percentage of reclaimed products and their packaging
materials for each product category; Percentage of recycled input materials
METRICS*
services by renewable and non-reneweable materials (tons); Total renewable

materials by product used to manufacture the organization’s primary products and services
Aspirational: Product recyclability assessment; Products with end of life Aspirational: Supplier base for recyclable and renewable inputs
solution (and success rate); Product material inputs which are unrecoverable;
Average product life
PROCESSES
BUSINESS
SUPPLY CHAIN & PRODUCT DESIGN RESEARCH & MANUFACTURING &

PROCUREMENT DEVELOPMENT OPERATIONS
IDENTIFYING OPPORTUNITIES TO DEFINING MATERIAL GUIDELINES INTEGRATING AND COLLABORATING

OPPORTUNITIES
INTRODUCE SUSTAINABLE MATERIALS & DRIVE ADHERENCE WITH SUPPLIER NETWORK

Systems can be used to manage sustainability
SYSTEM
IN PRODUCTS & PRODUCTION PROCESS Developing a robust supplier network with

Product assessment tools (e.g. LCA) can guidelines as they apply to product design and integration that allows for identification of
analyse inputs in the production process and development. Systems should enable tracking renewable or recyclable materials.
identify opportunities where sustainabile of adherence to these guidelines.
materials can be introduced.
KDD1 KDD2 KDD3

How might you promote sustainable How might PLM tools be used to set and How might you drive visibility over
inputs in material mapping and maintain guidelines for sustainable inputs? sourced materials and suppliers to
product design? Product lifecycle management, or PLM, identify and promote the use of renew-
A variety of tools can be used to classify tools are widely used for decision-making able or recycled materials?
products on the basis of their sustainability throughout design and manufacture. These Embedding a sustainable procurement
inputs, as well as to identify and introduce tools can be used to prompt choices that strategy in supplier management systems and
circular alternatives to existing materials. prioritize sustainable inputs alongside other processes can ensure that material inputs can
factors such as cost and production time. be re-used or recycled, and identify supplier
products that themselves have been created
using recycled materials.
BUSINESS SYSTEM DESIGN

How might How might you
KDD1 KDD3
you promote drive visibility over
sustainable inputs INTEGRATION COMPLEXITY suppliers to identify INTEGRATION COMPLEXITY
in material mapping PEOPLE

and promote the
PEOPLE
and product PROCESS

use of renewable or PROCESS
design? TECHNOLOGY
recycled materials? TECHNOLOGY
Several methods for ensuring a supply chain inclusive To deliver on a sustainable sourcing strategy, companies
of sustainable inputs are well-known. LCAs, supply risk must encourage greater visibility over their suppliers
analysis and assessment of environmental impact by and the materials they procure. This is critical to validate
product are processes that use foundational data to help material origins, sustainability certifications, as well
understand and select product materials and assist in as circular credentials regarding recyclable and
product design planning. renewable content.
Companies can begin by assessing the extent to which Digital technologies offer new opportunities for tracking
their current material mapping and product design materials in complex supply chains. A blockchain
processes allow for the inclusion of sustainable inputs, enabled ledger, for example, enables a chain of custody
then making those inputs visible alongside conventional for materials enabling reliable validation of material
alternatives. attributes. GreenToken by SAP is a supply chain solution
that offers companies a new level of transparency in their
complex raw material supply chain. The cloud platform
supported by blockchain technology can track the origin
How might PLM
tools be used to
KDD2 of plastic waste and the percent content of recycled
plastic in new circular polymers as well as provide chain
define and maintain INTEGRATION COMPLEXITY
of custody information in the agriculture industry from
origin to customer.
guidelines for PEOPLE
sustainable inputs? PROCESS

1 The Circular Economy Handbook,
Accenture, 2020
100 per cent recycled, recyclable
or bio-based plastic materials in all
TECHNOLOGY products and packaging by 2030,
2 Clean air is good for business, World
Product guidelines are the Economic Foundation, 2019
Businesswire, 2019
foundation for many decisions 3 Bloomberg

14 UN Global E-Waste Monitor
Fashion Industry Environmental,
relevant to sustainable inputs. By incorporating 4 With resource use expected to double
15
Waste, and Recycle Statistics, EDGE
by 2050, better natural resource use
sustainable inputs into product design and development, essential for pollution-free planet, UN
Fashion Intelligence
companies can identify opportunities to transition to Environment Programme, 2017 16 Make fashion circular, Ellen
MacArthur Foundation
alternative materials. Systems used to manage these 5 “The world’s plastic crisis explained,”
National Geographic, 2019 17 The Fashion Industry Waste Is
criteria are key to this approach and can enable tracking of 6 The Circular Economy Handbook,
Drastically Contributing To Climate
Change, CALPIRG, 2021
adherence to newly sustainable guidelines. Accenture, 2020
18 Single-use plastics: A roadmap to
7 Ellen MacArthur Foundation
sustainability, UN Environment, 2018
As a first step, assess your Product Lifecycle 8 The Circularity Gap Report 2019,
19 Fast moving consumers, CDP, 2019
European Union
Management, or PLM, tools for capability to incorporate 20 The open source Life cycle and assess-
9 Environmental benefit, Terracycle
sustainable input criteria with an interim goal of including ment software, OpenLCA
10 Circular Economy: Closing the loop,
Material circularity indicator, Ellen
sustainable inputs alongside other factors such as cost European Commission
21
Macarthur Foundation
and production time. 11 IKEA, 2020
22 WWF and Google Partner on Fashion
12 Schneider Electric wins global Sustainability Platform, Google, 2020
award for contribution to the circular
23 2019 Progress Report. UN Global
economy, PRNewswire, 2019
Compact, 2019.
13 Mattel announces goal to achieve
BENCHMARK
ZERO DISCHARGE OF HAZARDOUS

POLLUTANTS AND CHEMICALS
3, 6, 9, 11, 13,
14, 15, 17
Benchmark Information BUSINESS IMPACT ON

HAZARDOUS POLLUTANTS
This benchmark aims to eliminate hazardous industrial pollution
Commitment to this benchmark will have an
including chemicals, materials and wastewater. The benchmark interlinked impact across Agenda 2030, in
also includes pollutants released into the air (such as soot or particular on SDG 12, “Responsible Consump-
tion and Production”. RoadMap to Zero is a
particulate matter), water (such as groundwater contaminated
forum that works with industries to help them
with waste or fertilizer) and soil (such as hazardous mining reduce their chemical footprint. They have 169
byproducts). Globally, pollution has far-reaching consequences: contributors consisting of 34 signatory brands,
117 value chain affiliates, and 18 associates.6
for instance, ambient and household air pollution causes 8 million
deaths per year,1 agriculture runoff of fertilizers and pesticides
8T
The cost of mortaility and morbidity from PM
contaminates waterways,2 and industrial activity degrades soil 2.5 air pollution was over 8 trillion in 20197
health, reducing plant metabolism and agricultural output.3 The

scope of this benchmark covers industrial pollution generated in
direct operations and across the supply chain. The timeline for
59% of water in high-income countries is used
for industrial purposes compared with 8
per cent in low-income countries 8
this benchmark is set by the Agenda for Sustainable Development

as 2030.
80% of global wastewater is not adequately
treated9
Assessing Against the Benchmark ILLUSTRATIVE INDUSTRY IMPACT

Chemicals: Production capacity of chemicals
Performance on the benchmark — achieving zero discharge of is projected to grow to 4.6B tons by 2030.10
hazardous pollutants and chemicals — can be assessed in line with Chemical manufacturing businesses produce
waste that can have a harmful impact on the
guidance provided by the relevant UN bodies, such as the United environment, such as process residues, spent
Nations Environmental Programme (UNEP)’s Global Environment catalysts or solvents, effluent treatment slud-
ges and contaminated chemical containers.
Outlook4 and initiatives including the Global Programme of Action
Businesses can invest in anti-pollution R&D,
for the protection of the Marine Environment from Land-based manage waste using zero-discharge processes
Pollution.5 Businesses that have not established targets charting and innovate to reduce or repurpose byproducts
of chemical manufacturing processes.
a pathway to eliminating pollutants released into the air, water and
Textiles/Apparel: Textile mills account for
soil by 2030 would fall below the SDG Ambition Benchmark.
20 per cent of global water pollution and use
20,000 chemicals in manufacturing pro-
cesses.11 Reducing dye runs, re-using process
water, and selecting non-toxic chemical inputs
are some methods the industry can employ to
reduce their contribution to global pollution.
Z E R O D I S C H A R G E O F H A Z A R D O U S P O L L U TA N T S A N D C H E M I C A L S
FAST RETAILING LEVI STRAUSS & CO ADIDAS

committed to achieving zero is committed to zero discharge aims to achieve a 80 per cent of
discharge of hazardous chemicals of hazardous chemicals for all its supplier facilities to achieve Level
associated with supply chains products and supply chain by 2020 3 compliance with Manufacturing
and the lifecycles of products. through their Screened Chemistry Restricted Substances List from
They partner with other brands initiative. In 2019, they announced ZDHC by 2025, defining an end-to-
& apparel companies, material they will become Eco Passport end-approach managing chemical
suppliers, chemical industry, and certified via third party, OKO-TEX.13 inputs, monitoring supplier progress
NGOs to achieve this goal. Coming By 2020, Levi met its goal of and controlling the finished end
into 2020, FR achieved a 99.8 reaching zero discharge of hazardous product.15
per cent complaince from 56 key chemicals. 14
supplier facilitaties toward a zero
discharge of hazardous chemicals
from production.12
Companies can lower costs by proactively installing pollution Determine the sources of
controls across their plants and equipment; one study found that pollutants: Determine the sources of
cereal makers could realize $12M in savings through reducing hazardous discharge across the supply
fertilizer runoff.16 Companies with a good pollution control chain and evaluate the impact on water,
land, and habitat.
record are less likely to be in conflict with community groups and
government environmental agencies, reducing risk of fines and
Identify and classify the chemicals
penalties. For example, automakers operating in the EU are at and audit the processes: Identify all
risk of paying billions in fines if they do not meet today's emissions chemicals used, the quantity of usage
standards.17 and discharge and classify the chemi-
cals as per local government guidelines
or other standards, such as the ZDHC
Manufacturing Restricted Substances
List, which provides a frame of reference
KEY RESOURCES
on all chemical substances banned from
intentional use in manufacturing across
UN Environment
textile, apparel, and footware indus-
Environmental Defense Fund
tries.18 Companies can align the audit
Natural Resources Defense Council
protocol with standardized processes
FAO Global Symposium on Soil Pollution and benchmark existing standards and
European Environment Agency existing data at facilities.
Roadmap to Zero


In order to make progress towards achieving zero Companies must assess their maturity regarding
discharge, companies must understand the chemicals the organization’s understanding of existing
they use in products and manufacturing and the impact chemicals and pollutants. From there, they can
their discharge has. New systems and technologies can engage their technology partners on how to design
enable better recognition and management of hazardous systems to achieve:
waste across the organization such as product design
tools that embed ZDHC principles to eliminate hazardous
waste. Additionally, service platforms that map vendors
Comprehensive list of chemical
and identify safe treatment and disposal techniques
further help business streamline the monitoring and inputs in products and their environ-
management hazardous waste streams. mental impacts
Mapping chemical substances that are inputs across
the product portfolio as well as part of waste streams
to track areas of intervention.
PRODUCT DESIGN
Increased visibility of discharge
Assessing the product portfolio to understand the source and associated costs
and impact of hazardous chemicals can reveal targeted
Drawing data across the organization including
intervention strategies. GreenScreen is a platform used
transactions across TSDF such as invoices, discharge
by businesses to track their chemical inventories and
of hazardous chemicals by product, region and end-
compare the hazardous characteristics of chemicals,
disposal locations in one dataset.
materials and products.19 Apple has integrated zero
discharge of chemicals into their core business, leverag-
ing the GreenScreen tool to map their chemicals, restrict
their use through a Regulated Substances Specification Optimized management of hazardous
list, and innovate product alternatives in their Environ- waste streams
mental Testing Lab.20
Digital solutions can help define locations, processes
DISCHARGE TRANSPARENCY & TREATMENT and equipment required for controlling and treating
hazardous chemicals.
Digital cross-organizational systems for tracking hazard-
ous waste, such as Laboratory Information Management
Systems (LIMS) and Treatment, Storage and Disposal
Facilities (TSDF) vendor mapping, enable businesses
to locate sources of chemical waste or the appropriate
treatment technology to prevent the discharge of
hazardous chemicals. Establishing systems that identify
transactions across TSDF such as invoices, can provide
87
ZDHC accepted waste water testing labs21
granular details of discharged substances. Additionally,
categorizing total discharge of hazardous chemicals
by product, region, and end-disposal location can help
institute effective interventions and control measures. * See more in SDG Ambition Integration Guide chapter on Preparing for Integration

VIEW THE
RAISING AMBITION
ZERO DISCHARGE OF HAZARDOUS POLLUTANTS AND CHEMICALS

PATHWAYS
REDUCTION PREVENTION
Reduce the volume of waste and pollutants produced by business activities Treat and recycle pollutants to prevent leakage
which could leak into surrounding water sources and environmental damage
EXAMPLE ACTIONS
Assess chemical Identify leakages Implement strategy for Implement interventions and control measures to prevent harmful leakage
inputs across across operations and prioritised phase-out of pollutants into the environment (e.g. agricultural run-off catchment;
operations product categories starting with high-risk, wastewater recycling)
high-volume pollutants
via reduction or safer
alternatives
Reduction of hazardous chemicals used in products

GOALS
Increase in waste treatment rate

SUB
and operations (inc. other pollutants)
Fundamental: Chemical inputs — volume and risk factor by category Fundamental: Total discharge of hazardous chemicals by location type;
Products/services with established phase-out plans Treatment of wastewater and priority hazardous substances
METRICS*
Aspirational: Total risks identified before completion of transaction Aspirational: Material derived from discharge; Discharge and leakage to
environmental disposition by pollutant; Wastewater and material produced
by waste stream
PROCESSES
BUSINESS
HAZARDOUS CHEMICAL PRODUCT COMPLIANCE ENVIRONMENTAL WASTE MANAGEMENT

MANAGEMENT MANAGEMENT
IDENTIFYING MAIN SOURCES OF SERVICE PROVIDER INTEGRATION FOR IOT FOR EARLY WARNING AND
OPPORTUNITIES
POLLUTANTS IN PRODUCTS DISCHARGE TRANSPARENCY LEAK DETECTION

SYSTEM
& PRODUCTION PROCESS Establishing systems that identify transactions The use of meters and sensors can
Profiling product categories based on across Treatment, Storage and Disposal provide early warnings of potential leaks
chemicals used or pollutant by-products can Facilities vendors such as invoices, or discharge of pollutants and hazardous
be embedded in the innovation process to can provide granular details of materials to the environment.
inform decision making for discharged substances.
alternative materials.
KDD1 KDD2 KDD3

How might you integrate chemical or How might you streamline and automate How might you leverage smart
pollutant assessment into the product data flows from treatment providers technologies to automate prevention
design and manufacturing processes to to understand current state? of discharge?
eliminate negative impact? Leverage machine learning to automate data Meters and sensors can be used to monitor
Material data needs to be available and collection from third-party vendors who man- conditions and detect anomalies, even in areas
integrated in product or manufacturing age hazardous waste to ensure available and of remote operations. These tools can allow
planning and decision making to promote in- up-to-date data on chemicals and pollutants in for quick identification of leaks, which if paired
novation focused on elimination of hazardous waste streams. with other technologies (e.g. remote operating
chemicals and pollutants. valves), can be isolated and stopped without a
person having to be physically present.

How might you How might you auto-
integrate chemical
KDD1 mate the data flows
KDD2
or pollutant assess- INTEGRATION COMPLEXITY from treatment pro- INTEGRATION COMPLEXITY
ment into the product PEOPLE

viders to understand PEOPLE
design and manufac- PROCESS current state? PROCESS
turing processes to TECHNOLOGY

Companies enlisting waste TECHNOLOGY
eliminate negative management providers for the

impact? treatment of their hazardous
waste can gain a comprehensive view of the chemicals
As environmental pollution control technologies have and pollutants they discharge by integrating these
become more sophisticated and expensive,there is service providers onto central systems.
growing interest in designing products and manufacturing
processes that eliminate hazardous waste at the outset. By automating the data flows with such suppliers,
Assessment of known pollutants allows companies organizations can gain insights into not just the chemicals
to evaluate potential hazards, providing information and pollutants present, but also total cost of treatment
necessary to make an accurate waste determination including storage and/or disposal. Understanding the full
and consider appropriate strategies for management, cost of treatment can then help drive the business case
minimization, and disposal. for using alternative materials or moving to solutions
such as on-site treatment. Additionally, enabling data
A comprehensive survey of chemical and potentially toxic flows with treatment providers can significantly reduce
inputs across all areas of the business is a foundational manual data entry of analysis reports.
step that will allow your company to understand the
extent of pollution risk.
1 Air pollution, World Health 13 Levi-Strauss & Co. and Hohenstein
Organisation collaborate to bring safer chemicals
to the apparel industry using ECO
How might you

2 Water pollution: everything you need to
KDD3
PASSPORT by OEKO-TEX, Levi Strauss
know, NRDC, 2018
& Co., 2019
leverage smart tech-

3 Soil Pollution: A Hidden Reality, UN
14 Levi Strauss & Co. 2020 Sustainability
Food and Agriculture Organisation,
Report
2018
nologies to automate INTEGRATION COMPLEXITY 4 Global Environment Outlook 6, UN
15 Adidas Annual Report 2019
the prevention of
Environment Programme 16 Champions of Breakfast, Union of
PEOPLE
Concerned Scientists, 2019
5 Governing the global programme of
discharge? PROCESS
6
action, UN Environment Programme
Roadmap to Zero, 2022.
17 CO₂ emission performance
standards for cars and vans, European
Commission
TECHNOLOGY 7 The Global Health Cost of PM2.5 Air
Pairing internal data on use of Pollution, The World Bank, 2021
18 Roadmap to Zero
pollutants with technology 8 Industrial water, Centers for Disease

19 Use of GreenScreen in Corporate
Chemicals Management, GreenScreen
Control and Prevention
products such as leakage protection 20 A planet-sized plan, Apple
9 Water quality and wastewater, UN
systems, companies can identify discharge occurrences Water 21 ZDHC Impact Report. ZDHC, 2020.
with a high degree of accuracy and take immediate action 10 Global Chemicals Outlook II, UN
Environment Programme, 2019
to ensure that damage is mitigated.
11 Encourage textile manufacturers to
reduce pollution, NRDC
If such technologies are inaccessible or cost-prohibitive, 12 Progress Report on Chemical
commonly collected data such as point in time water Management, 2020
quality samples or pressure readings taken manually can

be used to identify anomalies. Risk assessments can be
used to evaluate potential release or discharge points and
inform your strategy for implementing meters and sensors
at points identified as highest risk.
BENCHMARK
ZERO WASTE TO LANDFILL

AND INCINERATION
6, 9, 11, 13,
14, 15
Benchmark Information BUSINESS IMPACT ON WASTE

The private sector is a major contributor to
The zero waste to landfill and incineration benchmark helps
global solid waste streams. It is estimated
organizations evaluate and optimize material flows and eliminate that 7.6 billion tons of industrial solid waste is
all solid waste from operations. While often most relevant in produced each year in the United States alone.4
the context of manufacturing where material use runs high, this Business can also find best practices through
the Zero Waste International Alliance, which is
benchmark is equally applicable to any business with physical
an internationally recognized source for
facilities and operations. According to the World Bank, global waste waste standards.
is projected to grow to 3.4 billion tons per year by 2050.1 The scale
of solid waste makes clear the need for business to systematically
38%
of waste streams consist of
avoid generating or discharging waste into the environment. In recyclables 5
addition to industrial waste, organic material such as food scraps

also have a significant impact on the environment which are
addressed by the benchmark: municipal solid waste landfills make 1.6B tons or approximately $1.2tn — of food is
lost or wasted annually 6
up 15 per cent of methane emissions2, which is a greenhouse gas

28 to 36 times more potent than CO23. The timeline to achieve this
benchmark is set by the Agenda for Sustainable Development
5.7B kg of waste is generated globally
per day7
at 2030.
22% of waste in high-income countries
is incinerated8

Construction: 30 per cent of construction Food & Beverage: One third of all food Retail: 2.2 billion kilos of returned goods
and demolition project materials end up in produced goes to waste.10 This amount enter US landfills each year.11 Minimizing
landfills.9 Constructing flexible structures of food waste generates GHG emissions returns and reducing their impact through
which can be readjusted without major eqivalent to 32 million cars. By diverting sharing more product detail and technolo-
demolition, as well as shifting to low- this waste, not only would it be benefitical gies like virtual try-on could lessen the
waste or biodegradable building materials for the environment, but could also help environmental impact.
would substantially reduce the industry’s address hunger globally.
contribution to global waste.
Z E R O WAST E TO L A N D F I L L A N D I N C I N E R AT I O N
MARKS & SPENCER OLAM NATURA

aims to become a zero-waste committed to zero waste to landfill is working towards zero waste in
business by 2025, reporting zero and 100 per cent utilization of by- their plants and distribution system,
operational waste and partnering products in its operations by 2024. where waste generated is reused
with Oxfam and Woodland Trust to It uses waste by-products such in production or becomes an input
help customers divert all purchased as cocoa husks to power boilers, for other industrial/natural cycles.
products from landfill. In 2020-21, valorizes by-products through Their strategy also includes a
Marks and Spencer's United post-harvest crop loss reduction, reverse logistics system that by
Kingdom and Republic of Ireland and reviews product packaging. 2050 will collect and recycle more
operations generated over 59,000 By 2019, 19 per cent of their power post-consumer waste material
tons of waste, none of which was was generated by renewables than is generated by their
sent to landfill. 12 or biomass.13 product packaging.14
Performance on the benchmark, achieving zero waste to landfill and Assess current waste streams:
Determine the source, type, and amounts
incineration, can be assessed in line with guidance provided by the
of waste generated to establish a baseline
United Nations Environment Program (UNEP), the World Bank and and identify areas of improvement. Sort
the US EPA. Industries have a range of waste reduction targets in waste streams by material type such
line with various baselines specific to their waste outputs. Businesses as liquid, solid, organic, recyclable, or
which are not in line with achieving zero waste diverted to landfill or hazardous waste to determine the nature
of their treatment and disposal.
to incineration in the context of their industry by a 2030 horizon would
fall under the benchmark. Partnership Ecosystem Identification:
Identify key partners such as waste
management and waste disposal
companies that can serve as partners
Business Value to achieve zero waste targets.
Achieving zero waste can have a significant impact on Greenhouse Gas

(GHG) emissions and help companies save on disposal and treatment
costs. Waste management costs across different countries can range KEY RESOURCES
anywhere from $35/ton to well over $100/ton, and mitigating these
costs can provide substantial savings to business.15 Similarly, one World Bank: What a Waste
automaker’s waste initiative at a single plant resulted in $1–2 million FAO State of Food & Agriculture
savings annually.16 Redirecting waste into recycling markets can also Zero Waste International Alliance
offer a potential revenue opportunity. In one example, a global apparel
WHO
manufacturer repurposed scrap into flooring material now used in
WRAP
more than 10,000 real estate projects globally.17 Diverting waste
from landfill and incineration is a proven means for business to
enhance its sustainability credentials while equally observing direct
business benefits.


Stronger understanding of waste produced by business Companies should assess their existing processes for
operations — what it is, where it comes from, where collecting waste data, as well as their ability to leverage
it ends up — leads to better elimination strategies. digital technologies for advanced waste management.
However, this level of visibility remains a significant Engaging with technology partners on waste elimina-
challenge for many companies due to a lack of reliable, tion, businesses can strive to achieve:
standardized data on waste flows. New digital
technologies such as smart bins or live waste mapping
can capture real-time, detailed data which can unlock
opportunities for businesses to reduce, re-use and Advanced materials master data
recycle previously discarded materials. Complete visibility of waste generation points, material
attributes and existing waste-disposal processes to
develop a zero waste strategy and action.
Zero-waste driven product innovation
WASTE ANALYSIS Identification of opportunities to both design out waste
Integrating digital tools enabled by technologies such in products as well as unlock new revenue streams
as artificial intelligence (AI) and the internet of things through by-product innovation.
(IoT) into core systems can accelerate waste reduction
and cost-savings. IKEA UK, for example, employed an
AI-enabled waste analysis tool from Winnow Solutions
to monitor food waste in its store kitchens. This enabled
Streamlined ecosystem engagement
IKEA to achieve a 50 per cent food waste reduction and Integration of intelligent systems and shared platforms
save £1.4m in costs across IKEA’s 23 UK stores.18 to interact seamlessly with waste management
providers and the secondary materials marketplace.
PARTNERSHIP INTEGRATION
Once a company understands their waste streams,
the next step is identifying solutions for diversion. Cloud
and AI enabled software can support this endeavor,
automating the selection of recycling providers for
18X
specific materials and regions. Rubicon is a software
company with a mission to use its cloud-based big data
platform to end waste by helping companies realize the
economic value in waste streams. The platform connects Globally, industrial waste
businesses of all sizes with waste management and generation is almost 18x higher than
recycling companies, resulting is higher landfill diversion municipal waste produced20
rates, creative reuse of waste material, and enhanced
insights from waste data.19

VIEW THE
RAISING AMBITION
ZERO WASTE TO LANDFILL AND INCINERATION

PATHWAYS
WASTE REDUCTION RE-USE & RECYCLE

Deploy waste prevention solutions to eliminate Re-purpose waste for other uses and needs, either as new
waste generation at the source internal inputs or conversion to new products for other uses
Conduct thorough waste stream Implement waste prevention Divert operational waste and Valorize recycled waste and
EXAMPLE ACTIONS
mapping, analyzing material flows solutions to reduce material by-products to other uses within by-products through sale to other
and destinations to identify hot consumption and remove process operations (e.g. to an energy source markets and sectors (e.g. mining
spots of waste leakage and guide inefficiencies such as eliminating as biogas) and track the diversion slag waste for cement feedstock;
strategies unnecessary packaging, optimiz- from landfill agricultural waste for innovative
ing inventory and innovating textiles) or by innovating new
production to reduce waste products within own business
portfolio (e.g. set up by-product
business unit)
GOALS
Increase in waste Revenues from waste

SUB
Reduction in waste production

recycling rate valorization
Fundamental: Aggregated volume of each waste stream; Amount of hazard- Fundamental: Total waste by Fundamental: New products
ous waste generated; Sites designated as zero waste to landfill or incineration re-use or recycling through by-product innovation;
METRICS*
Revenue generated
Aspirational: Volume of waste by material stream (e.g. polymer); Waste from Aspirational: Total waste
production by product type; Waste by destination (e.g. landfill, incineration) recovered by material type; Aspirational: Purchased cost
Waste recovery by end use of materials wasted; Value
recovered through recycling
PROCESSES
BUSINESS
MANUFACTURING WASTE ENVIRONMENT SALES & RESEARCH & SUPPLY CHAIN &
& OPERATIONS MANAGEMENT MANAGEMENT DISTRIBUTION DEVELOPMENT PROCUREMENT
MANAGEMENT
INCREASING VISIBILITY OVER EXTERNAL SERVICE PROVIDER EMBEDDING WASTE BY-PRODUCT INTO
OPPORTUNITIES
WASTE STREAMS INTEGRATION TO MONITOR AND MATERIAL RESOURCE PLANNING AND

Develop processes and tools for ADVANCE RECYCLING PRODUCT INNOVATION
SYSTEM
sophisticated waste stream analysis, Integration with external waste management Leveraging material management solutions
identifying the different materials produced and recycling companies to understand for the reintroduction of waste as a useable
and embedding their tracking in core waste material flows, costs and opportunities for and consumable product input.
management systems. resource recovery/diversion which can inform
production and product design decisions.
KDD1 KDD2 KDD3

How might you define specific waste How might you automate data collection How might you facilitate the introduction
attributes to support more granular and manage digital chain of custody for of generated waste as a consumable
measurement of waste streams? waste recycling? or marketable material in your technol-
The definition of points of waste Leveraging a combination of advanced ogy system(s)?
generation, sites and material attributes will technologies, such as barcodes, smart bin Generated waste or by-products must be
provide more visibility on waste generation. sensors and analytics tools, can enable visible in central resource and material
Specific attributes can drive waste disposal digital tracking of waste and automate management systems so it can be utilized
processes within facilities and enable data collection. as a material internally or marketed and
increased diversion. sold externally.

How might you de- How might you facili-
fine specific waste
KDD1 tate the introduction
KDD3
attributes to sup- INTEGRATION COMPLEXITY
of generated waste INTEGRATION COMPLEXITY
port more granular PEOPLE as a consumable or PEOPLE
measurement of PROCESS
marketable product PROCESS
waste streams? TECHNOLOGY

in your technology TECHNOLOGY
system(s)?
Tracking the volume of recyclables
and waste hauled gives an understanding of how well a Daily operations lead to generation of waste, but there
waste management program is performing, providing are opportunities for these by-products to be put to use
metrics on the amount of waste produced and the recycling internally (e.g. recycled fibers as an input to a product line)
rate. However, to gain insights on how to improve, a waste or marketed and sold externally (e.g. organic waste sold as
assessment is critical to develop a more robust understand- value-added compost). To accomplish this, systems must be
ing of your waste profile. A waste assessment will provide designed with flexibility in order to allow for this reintroduc-
key data points, for example polymer type in plastic waste, to tion of products and by-products. In this way, after initial
discover opportunities for waste reduction. material consumption or use, the scrap product can be made
available in the system for reuse elsewhere or to be sold.
Using a waste assessment as the foundation, each type of
waste can undergo a review of the attributes already tracked Technologies such as remote monitoring sensors help to
versus what is possible to capture via available tools. In this automate this data collection and guide decision-making
way, waste profiles can be improved upon to help leaders on the pathway of a given material through a waste stream.
understand how to divert each waste type from landfill Examining the feasibility of remote monitoring by product
and incineration. and waste stream will assist in prioritization of piloting a
digital chain of custody solution.
How might you auto-

mate data collection
KDD2 1 World Bank 14 Natura
2 Basic Information about Landfill 15 World Bank

and manage digital INTEGRATION COMPLEXITY
Gas, US EPA
16 “The Zero Waste Factory,” Scientific
chain of custody for PEOPLE

3 Ibid. American, 2017
4 Guide for Industrial Waste 17 25 Years of Nike Grind, Nike

waste recycling? PROCESS
Management, US EPA, 2021
18 IKEA and Winnow are building the
5 What a Waste 2.0, World Bank, 2018 kitchen of the future, Winnow
The monitoring of waste collection TECHNOLOGY
6 The Guardian 19 The smartest way to manage waste,
and disposal is a complex task. Rubicon
7 What a Waste 2.0, The World Bank,
To simplify it, the use of certain 2018 20 What a Waste 2.0, The World Bank,
technologies like Reverse Vending Machine (RVM), smart 8 Ibid.
2018
bins, or barcodes can be used to automate the process. It’s 9 Waste: A Handbook for Manage-
crucial to integrate the data collected by partner waste ment, 2011
management and recycling service providers into business 10 Fight climate change by preventing
food waste, WWF
systems. This allows you to understand material flows,
11 “Free returns come with an
costs and opportunities for resource recovery / diversion
environmental cost,” The Verge,
which can inform production and product design decisions. 2019
12 Waste & Circular Economy, Marks

Understanding some initial parameters like number of & Spencer’s
collection or disposal centers and the daily volumes and 13 Olam Annual Report 2019, Olam
types of waste collected and disposed can give a better view
to evaluate disposal options and to improve the process of
waste management.
BENCHMARK
SCIENCE BASED EMISSIONS REDUCTION

IN LINE WITH A 1.5°C PATHWAY
3, 9, 12, 14, 15 5–10 Years

ON CLIMATE CHANGE
Adopting this benchmark helps business assess their operations against
The private sector plays a key role in reducing
the latest climate science, validated by the Science Based Targets emissions in line with climate science as 73 per
initiative (SBTi).1 The SDG Ambition Benchmark on science-based cent of GHGs are produced by the energy sector
alone, inclusive of manufacturing, transportation,
emissions reduction in line with a 1.5°C pathway provides business critical
generation and fugitive emissions.7 According to the
strategic knowledge in setting a science-based emissions reduction target 2021 UN Global Compact-Accenture CEO Study on
and the technical know-how in understanding the role systems play in Sustainability, 55 per cent of companies presently
report their Scope 3 GHG emissions.8
measuring progress and performance. The SBTi has established a range of
criteria to ensure alignment with scientific consensus on what is needed to
halt global warming at 1.5°C. A science-based target is inclusive of Scope
1 and Scope 2 GHG emissions. Scope 3 emissions must be included when
35% of cumulative global emissions come
from just 20 companies9
a company's relevant scope 3 emissions exceed more than 40 per cent

of total Scope 1, 2, and 3 emissions, or if a company is involved in the sale 80m jobs are projected to be lost due to global
warming by 203010
or distribution of natural gas and or other fossil fuels.2 Near-term (5-10)

year timelines are required3 and the long-term target of reaching net-zero
emissions in every sector and industry by 2050 helps businesses manage
20% increase in renewables for top
multinationals would save 1 billion metric
tons of GHG emissions (equivalent to the
2020 emissions of the United States)11
long-term risks and opportunities.4
>50% of global emissions come from only 8

supply chains12
Assessing Against the Benchmark ILLUSTRATIVE INDUSTRY IMPACT

Performance on the benchmark — achieving an emissions reduction in line Energy: Decarbonization of the energy sector
is essential to reducing energy-related carbon
with a 1.5°C pathway — performance on the benchmark can be assessed
emissions.13 One study found that 71 per cent of global
in line with the Paris Agreement's goal to halve annual greenhouse emissions can be linked to 100 energy companies.14
gas emissions over the next 8 years.5 However, most companies today Increased efficiency, adoption of renewables, carbon
pricing, and carbon capture are among the many ways
establish their own baseline reduction goals consistent with their strategy
in which companies can contribute to the low-carbon
and operations. Today, only 2 per cent of CEOs who believe the have taken energy transition.15
sufficient climate action have validated their targets with the SBTi. In Industrial Goods: GHG emissions related to
order to meet the SDG Ambition benchmark, businesses must reduce industrial processes account for about 5.5 per cent
of global emissions, growing by 174 per cent between
emissions in line with a 1.5 degree celcius pathway and validate that their
1990–2020, primarily due to increased refrigeration
targets are consistent with SBTi criteria.6 and production of Hydrofluorocarbons (HFCs).16
Switching to low-carbon alternatives for use in
industrial application could slow this growth trend.
S C I E N C E BA S E D E M I S S I O N S R E D U CT I O N I N L I N E W I T H A 1 . 5 ° C PAT H WAY

The Science Based Targets initiative (CDP, UN Global Compact, WRI and WWF) has
been driving ambitious corporate climate action since 2015. As of December 2021, over
2000 companies are taking climate action aligned with the Paris Agreement, of which
over 1000 with science-based targets.17 The Business Ambition for 1.5°C campaign
invites the most visionary leaders to commit their companies to set science-based
targets aligned with a 1.5°C pathway in the lead up to COP 26. The Business Ambition
for 1.5 C campaign calls on companies to set long-term net-zero targets in addition to
their near-term SBTs. Over 800 companies are committed to net-zero to date.18
ØRSTED CVS
set a science-based target to reduce its near-term GHG set a science-based target to reach net-zero greenhouse
emission intensity from energy production by 96 per cent gas emissions across the value chain by 2050. In the near-
by 2023, while also committing to reach net-zero GHG term, CVS has committed to reduce Scope 1, 2 and 3 GHG
emissions across the value chain by 2040.19 Their approach emissions 47 per cent by 2030. Their environmental policy is
focuses on building offshore windfarms and converting focused on ensuring that emissions from purchased goods
their power plants to biomass. They have reduced their coal and services, business travel, and downstream transporta-
consumption by 82 per cent since 2006 and their power tion are all systematically reduced.21
plants will be coal-free by 2023.20

By cutting emissions, switching to renewable energy, and enhancing Understand your GHG inventory:
Undertaking a GHG inventory will help
energy management, companies can lower operational costs, as prices identify the emissions caused by a given
for fossil fuel alternatives continue to decline.22 29 per cent of CEOs who business process. The most commonly used
international tool for quantifying emissions
report to have set science-based targets say it has enhanced bottom-line
is the GHG Protocol.
savings.23 Moreover, by investing in low-carbon products and services,
companies can spur growth within their operations and help identify new Disclose your emissions: Disclosure in an-
nual reporting or to cross-industry disclosure
product categories: 63 per cent of CEOs who report to have set science- organizations like CDP holds companies and
based targets say it is driving innovation in their companies.24 industries accountable to climate science.
Support low-carbon policy: Policies

that advance low-carbon technology and
the cessation of fossil fuel subsides will
be essential in moving the needle towards
KEY RESOURCES zero carbon. Making these efforts part of your
advocacy work underscores commitment
to science-based targets and can support
Science Based Target initiative UNGC Academy SBTi Course
implementation.
Business Ambition for 1.5°C UNGC Academy Scope
Emissions Course Learn SBTi Criteria: the SBTi maintains
IPCC
criteria on emissions reductions in line with
GHG Protocol a 1.5 degree Celsius pathway, and provides
specific industry guidance. Remaining up to
date with this criteria helps ensure effective
emissions reductions.

Chief Executive Officer

Pursuing visibility over greenhouse gas (GHG) emissions The advancement of digital technologies has encour-
across the value chain is key to informing low-carbon aged a growing market of solutions to support richer
business models and product innovation. By leveraging insights on a company’s GHG emissions. Companies can
digital technologies, such as the internet of things (IoT) work together with their technology partners to achieve
and artificial intelligence (AI), companies can move outcomes such as:
from manual data entry to real-time monitoring and
management of emissions sources. The World Economic
Forum estimates that, when combined with other Automated carbon accounting and
technologies such as 5G and AI, IoT could help cut global real-time action
emissions by 15 per cent.25
Leveraging digital tools to measure energy consumption
across production in real-time and feeding that into
SBTi provides guidance and criteria for setting targets
carbon accounting calculations using advanced tools
aligned with a 1.5°C pathway, as well as support for
and algorithms. Software companies are coming
businesses to implement their target and report against
forward with products for carbon footprint analysis
it. SDG Ambition seeks to complement this guidance with
that help customers understand their carbon footprint
a focus on designing business systems to advance the
and provides a foundation for analyzing and optimizing
measurement and management of progress against a
greenhouse gas emissions.**
1.5°C pathway.
Engagement and influence

over suppliers and customers
Hardwiring GHG emissions reduction into material
management and product innovation.
MANUFACTURING
Monitoring the energy consumption of equipment
using IoT and sensors pinpoints inefficiencies to reduce Real-time carbon pathway analysis
the energy intensity of the production process. Smart
Creating analytics tools to intelligently and efficiently
manufacturing, for example, is estimated to enable $11.9
measure the business’ carbon pathway to identify
billion in cost savings in 2030.26
changing investment requirements and possible carbon
reduction opportunities.
PRODUCT USE
A deeper understanding of GHG emissions during the
use phase enables product innovation to reduce lifecycle
emissions. Unilever, after identifying 60 per cent of
laundry detergent’s emissions occur in use phase,
launched new products which enable people to wash
their clothes at lower temperatures reducing associated
<30%
of companies report incor-
67%
of companies reporting to
porating climate policy into CDP as having an emissions
GHG emissions by up to 50 per cent per load.27 overall company strategy 28 reduction target disclosed
sufficient data29
** This technology is presented as an example and is not endorsed by SBTi.

Example detail below follows the approach outlined in the SDG Ambition Integration Guide and VIEW THE
supports ideation for benchmark integration. It does not present criteria for setting an SBT. INTEGRATION GUIDE
RAISING AMBITION
SCIENCE BASED EMISSIONS REDUCTION IN LINE WITH A 1.5°C PATHWAY

PATHWAYS
GHG COMPENSATION
GHG REDUCTION
Abstract carbon from atmosphere through natural GHG
Reduce GHG emissions produced by business activity through
removals and technologies to compensate for business
the value chain In line with a 1.5 Degree celcius pathway
emissions (excluding offsets)
Assign Identify and Implement and Increase share Identify oppor- Mandate investment and Mandate investment and
EXAMPLE ACTIONS
financial value target energy track supplier of low-carbon tunities to drive strategies to scale natural strategies to scale use
to emissions consumption GHG reduction and renewable GHG reductions carbon dioxide removal (e.g. of carbon capture and
from business savings and strategies energy through products afforestation, reforestation, sequestration technology,
activity, to drive efficiency and services and soil carbon sequestration) and track volumes of carbon
reductions e.g. opportunities innovate low- removed, stored and/or
Internal Carbon across the value carbon offerings recycled
Price (ICP) chain
GOALS
Reduction in scope 1 Reduction in scope 2 Reduction in scope 3 Increase in GHG Net carbon
SUB
emissions emissions emissions removal impact
Fundamental: Fundamental: Fundamental: Fundamental: Fundamental:

Energy consumption (by fuel Market-based & location- Estimated upstream & GHG removal by removal Annual carbon emissions
METRICS*
type, emissions type) based emissions downstream emissions technology; Cost per tonne vs. annual removals
of GHG removed
Aspirational: Aspirational: Aspirational: Aspirational:
Energy consumption by BU; Electricity by BU; Product; Subdivided by Scope 3 Aspirational: Historical carbon emissions
Product; Activity Activity, Market instrument activity (e.g. employee travel) Certification of removals & historical net impact
PROCESSES
BUSINESS
MANUFACTURING PROCUREMENT LOGISTICS, WASTE SALES & ENVIRONMENTAL

OPERATIONS & & SUPPLY CHAIN TRANSPORTATION MANAGEMENT DISTRIBUTION MANAGEMENT
STREAMLINING DIRECT MANAGING SUPPLIER LEVERAGE EXISTING DATA FORECASTING & SCENARIO
OPPORTUNITIES
EMISSIONS TRACKING PERFORMANCE AND PROCESSES FOR SCOPE MODELLING FOR REMOVAL
SYSTEM
Business systems can Greater engagement & transpar- 3 EMISSIONS STRATEGY

ultimately be automated in order ency with suppliers through supply Use existing data (e.g. product Leveraging tech such as
to calculate direct emissions in chain management tools and use log) to appraise scope 3 predictive analytics to map
real-time, rather than relying on technologies. emissions and build carbon existing pathway, informing
manual data entry. intensity into data design. removal strategies & timing.
KDD1 KDD2 KDD3 KDD4

How might you automate How might you integrate with How might you accurately How might you effectively
data collection for emissions suppliers to improve visibility measure scope 3 emissions? forecast emissions to opti-
calculations? and emissions performance? For a complete view of scope mize removal investment?
Existing meters and data Defining processes for visibility of 3 emissions, it is important to Setting up an ongoing, real time
available in data historians can supplier emissions data, moving understand the energy intensity model for forecasting emissions
be leveraged to automate inputs towards automation. This can be of the materials used in product helps identify gaps in achieving
into your emissions calculations. done with third-party integration design, consumer use, and of the 1.5°C pathway. This insight
These data inputs will also (e..g sustainability rating agencies), your own internal operations (e.g. can help decision making on
inform how you configure your or through direct data sharing employee travel). removal strategy based on the
emissions calculations. from suppliers. required GHG compensation.
Each organization should adopt goal-setting measures aligned to their reporting ** Reductions in Scope 1, 2, and 3 emissions must be in line with SBTi Criteria, provided here:
https://sciencebasedtargets.org/resources/files/SBTi-criteria.pdf"
methodologies and business context. Note: Approach under consultation with Science Based Targets initiative to ensure alignment

How might you How might you
automate data KDD1 accurately KDD3
collection for measure scope
emissions 3 emissions?
INTEGRATION COMPLEXITY INTEGRATION COMPLEXITY
PEOPLE PEOPLE
calculations? Calculating non-direct carbon
PROCESS PROCESS
emissions, such as product use and
Technologies such as IoT and sensors
treatment at end of life, remains a
can be used to monitor GHG emissions TECHNOLOGY TECHNOLOGY
complex task for companies. A first
in more efficient and impactful ways,
step involves defining the calculation
from office energy use to smart
method to estimate emissions, such as by leveraging
manufacturing. Ericsson, in an effort to boost production
sales records and survey data on consumer behaviors.
efficiency at their Tallinn manufacturing site, implemented IoT,
5G and augmented reality to monitor the work environment Companies should strive for more intelligent data collection
and equipment. Not only did this enable a detailed sustainability and calculation by increasing data flows between businesses,
impact analysis of the site, but also opened opportunities to products and customers. For example, one technology company
increase efficiency by 25 per cent.30 uses IoT-connected printers to monitor customer consumption
and automatically send ink when they are running low,
Intermediary steps can be taken to streamline emissions
illustrating the opportunities for deeper customer interaction.
tracking, such as designing financial system to track energy
consumption invoices and moving to smart energy meters.
How might you How might you

integrate with KDD2 effectively forecast KDD4
suppliers to improve emissions to optimize
visibility and emissions removal investment?
PEOPLE PEOPLE
performance? Companies can calculate their GHG
PROCESS PROCESS
Leading supplier management software emissions pathway to 2030 today using
tools support supplier emissions TECHNOLOGY
excel-based modelling tools provided TECHNOLOGY
compliance and are able to integrate by the SBTi (e.g. target-setting tool).
with third-party tools to collect, analyze Understanding the level of reductions
and manage supplier sustainability data. Walmart, working to needed to 2030 to align with a
reduce one gigaton of greenhouse gases from their supply chain by 1.5°C pathway is critical to strategic planning to achieve the
2030, encourages suppliers to participate in THESIS, a third-party benchmark. Scenario analysis, for example, enables companies
program that benchmarks suppliers, tracks performance and to understand the risks associated with various GHG reduction
identifies opportunities for improvement.31 scenarios, and test its investment opportunities against these
scenarios to support capital allocation prioritization.32
Companies of all sizes can embed requirements in the
procurement process, striving for a chain of custody over These tools often rely on manual data entry. Companies
carbon emissions where supplies you buy come with carbon should engage their technology partners on the optimization
data associated that can then be provided to customers. In the and automation of scenario analysis, leveraging advanced
long-term, large organizations can strive to leverage blockchain analytics tools to provide real-time forecasts and
or cloud technologies to automate this process. opportunity identification.
1 Science Based Targets, SBTi 10 Heat Related Job Losses, UNFCCC 19 Case study: Orsted, SBTi 28 UN Global Compact 2020 Progress
2 SBTi Criteria and Recommendations 11 Supply chains hold the key to one 20 Ibid. Report. UN Global Compact, 2020.
SBTi, 2021 gigaton of emissions savings, finds 21 Case study: CVS, SBTi 29 CDP Reports Record Number of
3 Ibid. new report, CDP, 2019 Disclosures, CDP 2021
22 Renewable Power Generation Costs in
4 Science-Based Target Setting Manual, 12 Net-Zero Challenge: The supply chain 2020, International Renewable Power 30 Wireless Factory Sustainability and
SBTi opportunity, 2021 Agency (IRENA) Connectivity, Ericsson
5 UNEP Emissions Gap Report 2021 13 Greenhouse Gas Emissions by 23 Six benefits of setting science-based 31 THESIS Index, Walmart Sustainability
Country Sector, WRI targets, SBTi Hub
6 2021 CEO Study. UN Global Compact,
2021. 14 Ways Businesses Can Lead the 24 Ibid. 32 The Use of Scenario Analysis in
Transition to a Low-Carbon Economy, Disclosure of Climate-Related
7 Global Emissions, Center for Climate WRI 25 World Economic Forum Risks and Opportunities, The Task
and Energy Solutions 26 ICT solutions for 21st Century Force on Climate-Related Financial
15 Energy transition, IRENA
8 2021 CEO Study. UN Global Compact, Challenges, Global e-Sustainability Disclosures (TCFD)
2021. 16 Companies Taking Action, SBTi Initiative
9 Carbon majors, Climate Account- 17 Ibid. 27 Climate Transition Action Plan,
ability Institute, 2019 18 Ibid. Unilever
BENCHMARK
100% RESOURCE RECOVERY, WITH ALL

MATERIALS AND PRODUCTS RECOVERED
AND RECYCLED OR REUSED AT END OF USE
6, 9, 11, 12, 13,
15, 17

ON RESOURCE RECOVERY
This benchmark calls for extending responsibility over materials and
products downstream in the value chain to ensure they are recovered and Today, the majority of materials and products
recycled or reused in practice. Companies can drive product and material are not recovered, reused or recycled; instead,
recovery by introducing new circular business models and customer they are discarded. Globally, for example,
incentives (including product-as-a-service and takeback), building industry 16 per cent of plastics are collected for
ecosystems for reverse logistics and secondary markets, and investing recycling5 and only 2 per cent enter closed
in new capabilities, such as asset tracking or material recycling. This loop recycling streams. Large quantities of
this packaging end up in the ocean; unless
benchmark applies to company products and services as well as the value
urgent action is taken, between 850-950
chain. The timeline to achieve 100 per cent resource recovery is set by the
million tonnes of plastic will be found in marine
Agenda for Sustainable Development as 2030. systems by 2050. 6
Models for extended material use and recovery
Assessing Against the Benchmark

also offer opportunities for business improve-
ment. By some estimates, reuse as a pathway
Performance against the benchmark — percentage of sustainable inputs for raw material recovery could lead to
savings as high as 25 to 50 per cent. The Ellen
by the year 2030 — can be assessed in line with the targets identified in
Macarthur Foundation (EMF) brings together
SDGs 12 and 14, the Ocean Conservancy’s Plastics Policy Playbook,1 and
business, innovators, cities and governments,
the global Plastics Pact initiative.2 Committing to this benchmark will
universities, and thought leaders on circular
support many SDGs, including Goal 14: Life Below Water. Businesses that economy topics. It counts over 160 companies
have not established goals in line with achieving 100 per cent sustainable as members.7
inputs by 2030 in line with Agenda 2030 would fall below the SDG
Ambition Benchmark.
20% of e-waste is reused or

recycled appropriately 8

Technology & Telecommunica-
tions: 50M tons of E-waste are created
Mining: More than 50 per cent of
steel in the United States is recycled.4
1% of clothing is recycled back into
clothing, 73 per cent goes to landfill9
each year, valued at more than $60B.3 Recovery, reprocessing and reuse of
A significant value opportunity can metals will have an impact in addition
be captured from industry initiatives to the metals value chain as recovered $600B projected size of reverse
logistics market 10
with the establishment of an efficient materials increasingly become
reverse-logistics infrastructure to standard. Mining companies can use
enable takeback, reuse, refurbishment, their smelting capacity to take on
and recycling. secondary materials and build better
market and downstream collaboration.
1 0 0 % R ES O U R C E R EC OV E RY, W I T H A L L M AT E R I A LS A N D P R O D U CTS
R EC OV E R E D A N D R ECYC L E D O R R EU S E D AT E N D O F U S E
VEOLIA PHILIPS ARCELORMITTAL

helps clients manage waste and is committed to fully close the loop runs a steel sheet pile rental service
recover value. 60 per cent of the on all large medical equipment for their customers. The product
company’s circular economy systems, pledging to take back and retains its intrinsic properties for
revenue is attributed to recycling and re-purpose all the large medical multiple uses and a single sheet pile
material recovery. In partnership with systems that its customers are can be re-used up to 10 times before
Selfridges, a British department store, prepared to return to it. Philips has being recycled.13
Veolia recycled fibers from used cof- the goal of generating 25 per cent
fee cups into shopping bags, tripling of revenue from circular products/
recycle rates from 15 per cent to services by 2025.12
55 per cent and reaching 100 per cent
diversion from landfill.11

Product as a service business models present an opportunity for increased Identify relevant methods of recovery:
revenue from new business models, accessing new customers and new Conduct a life cycle assessment to
markets. Resource recovery allows companies to reduce supplier costs determine how materials and products can
be recovered and whether reuse or recycling
over time. One global industrial company has preserved 170M pounds of
is most appropriate.
materials through their component return and remanufacture initiative.14
Many goverments across the globe, including China and the European
Data management and secondary
Union, are beginning to implement Extended Producer Responsibility markets: Develop capabilities to collate
(ERP) regulations. The goal of these regulations are to make product the right data throughout the lifecycle of the
manufacturers and distributors responsible for their products and product to introduce targeted interventions,
packaging at the end of life. This will provide incentives for industries to understand additional materials and identify
reduce waste and promote circular economy business models. Adopters secondary markets.
of these practices will benefit from reduced risk of escalating costs in an
evolving regulatory environment.15 Employee and consumer engagement:
Enhance awareness and knowledge about
the value of “take-back” programs among
consumers to increase effectiveness and
among employees to structure within their
performance metrics.
KEY RESOURCES
Ocean Conservancy Plastics Policy Playbook

The Circular Economy Handbook
Ellen MacArthur Foundation
Platform for Accelerating the Circular Economy
World Resources Institute

Chief Innovation Officer

In the linear economic model there has been limited Companies can engage with technology partners to design
pressure for companies in most industries to measure business systems that support data flows for materials
and track product and packaging after the point of sale. As after sale. In doing so, companies can achieve:
companies embed the circular economy into core business
strategy and culture, they must assess their material
flows and how they can recover products to recapture Designs for recyclability
value. In order to recover 100 per cent of the materials
Understanding specific requirements for recycling
produced, leaders must innovate fundamentally new ways
materials in products to inform product design decisions
of doing business, leveraging technologies to enable new
relationships with customers, partners and their products. and increase resource recovery.
New and promising applications of digital technologies,
such as RFID, blockchain and digital twinning are enabling
businesses to track materials after sale in ways previously New customer propositions
not possible in business to consumer models. Matching Product-as-a-service and product-life-extension models
raised ambition on resource recovery with increased rely on new interactions with the customer, underpinned
innovation for new processes built on core business by innovative systems of measuring and managing
systems is key for providing the data flows that enable product use.
these new models and customer propositions.
Reverse logistics
Building systems to underpin sophisticated networks of
partners to collect products at end of life and return to
facilities for resource recovery.
CLOSED LOOP SUPPLY CHAINS
By designing systems that can support collection programs
and reverse logistics processes companies can unlock
80-90%
opportunities to re-input materials from their products into
their own supply chain, saving on both materials and costs.
Apple uses its international Trade-In program to give new reduction in raw materials can be achieved
life to iPhones. Pursuing higher rates of resource recovery, by extending the life of products across
Apple developed recycling robots Liam, Daisy and now Dave, three industrial sectors in USA, China, Brazil
to disassemble devices in order to recover precious metals and Germany18
that can then be used to manufacture new devices.16
DIGITAL TRACKING
Certain industries are seeing innovative applications of
tracking technologies in order to trace materials following
use. Start-up EON, for example, is working with leading
brands in the fashion industry on The CircularID Protocol 2%
which gives every product a unique digital profile making it the current re-manufacturing share
possible for companies to scale the reuse and recovery of of production in the United States;
products and materials.17 just 1.9 per cent in Europe19

VIEW THE
RAISING AMBITION
100% RESOURCE RECOVERY, WITH ALL MATERIALS AND PRODUCTS RECOVERED AND RECYCLED OR REUSED AT END OF USE

PATHWAYS
PRODUCT ASSESSMENT NEW BUSINESS MODELS COLLECTION & RECYCLING

Embedding requirements for product and Develop new offerings that increase control Re-capture re-usable materials for recycling
service design to enable recovery, recycling over product and packaging recovery & re-introduction into supply chain
and re-use at end of product use
Implement product Mandate recyclabil- Grow product-as- Grow product and Develop Implement Develop
EXAMPLE ACTIONS
design criteria that ity assessments of a-service (PaaS) service offerings for reverse sup- sales and recycling
require the use products/services to business offerings, remanufacture and ply chain customer infrastructure
of recyclable and test ability for end-of- such as leasing and repair, tracking product capability, e.g. incentives for collecting
renewable materials life sorting, processing rental in place of ownership, use and leveraging to increase and sorting
and recovery one-time purchases lifecycles big data and product returned
for easy return and mapping recovery at material
recycling technology to end-of-use
enable return
of materials
GOALS
Increase in renewable and recyclable Increase in revenue from Increase in product collection
SUB
inputs by product circular models and recycling
Fundamental: Materials that are used to Fundamental: Revenue generated per Fundamental: Total material collected and
produce and package products; business model; Product recovery per business recycled; Collection sites and programs by
METRICS*
Total renewable materials by product model; Product lifecycle by product type type; Closed loop recycling
Aspirational: Product recyclability Aspirational: Customer conversion to new Aspirational: Material recovery divided by
assessment; Product material inputs which offering; Customer churn by offering type next use; Net-energy from recycling; Net-cost
are unrecoverable from recycling
PROCESSES
BUSINESS
PRODUCT DESIGN PROCUREMENT & WASTE RETURN SALES & ENVIRONMENTAL

SUPPLY CHAIN MANAGEMENT MANAGEMENT MARKETING MANAGEMENT
OPPORTUNITIES
PACKAGING AND PRODUCT DESIGN NEW CUSTOMER INTERACTIONS NETWORK FOR RETURN, PROCESSING
Identify new opportunities to understand Deepening relationships with customers to AND RECYCLING
SYSTEM
the recyclability of products and packaging, understand product consumption and material Integration of retailers and service providers
based on factors such as ease of disassembly, flows, unlocking new revenue streams. in reverse logistics or recycling enables an
existing recycling infrastructure and end-to-end material recovery solution for end
material blends. of use products
KDD1 KDD2 KDD3

How might you prioritize recyclability How might resource recovery be How might you enable the highest value
in product and packaging design and embedded into customer propositions? re-capture from material recovery and
material selection? Increased visibility over product use can recycling?
Assessing products and packaging for open new revenue streams for business Pursuing high value re-capture and closed
recyclability in practice using analytics focused on keeping materials in use, such as loop recycling after product use relies on
driven tools opens greater opportunity to tag product-life extension models of repair and end-to-end systems of product return, mate-
attributes in material management systems re-manufacture and product-as-a-service rial sorting and processing, and advanced
and set recyclability criteria in R&D and models built on leasing and maintaining recycling. Business systems are capable
product design. material ownership. of supporting the integration of multiple
partners and data based on material flows.

How might you How might you enable
prioritize recyclability KDD1 the highest value
KDD3
in product and re-capture from
packaging design and material recovery
PEOPLE PEOPLE
material selection? and recycling?
PROCESS PROCESS
A number of factors impact the To make resource recovery possible
recoverability of a product such as TECHNOLOGY for many materials, companies TECHNOLOGY
material inputs, ease of disassembly, need to build a network across

and existing recycling infrastructure. the value chain that can support
To assess products and packaging for impact in view of reverse material flows as well as sorting and processing
resource recovery requires combinations of proprietary for recycling. Some companies may be able to call on their
materials data and external data sources to be integrated current software solutions to support this. For example,
into your internal corporate materials database. There returns management company ZigZag added “TakeBack”
are new, evolving tools which can support this, such as the functionality to their platform enabling fashion retailers to
Materials Circularity Indicator (MCI) tool developed by Ellen offer recycling and resale options for returns.21
MacArthur Foundation and Granta Design.
Beyond customer returns, crucial barriers to resource
Businesses should design core business systems — such as recovery exist in systems to sort and process materials
material management and product lifecycle management for recycling. Jaguar Land Rover is investing in the circular
software — to integrate this data, tagging material and economy through its “REALITY” project, partnering with
product attributes according to circularity. This enables the Axiom to integrate advanced sensor technology into a
prioritization of certain materials and designs, as well as the closed loop process that enables aluminium from scrap
ability to set targets and criteria for resource recovery. vehicles to be re-introduced into the production line. This
project is projected to reduce their aluminum production
emissions by up to 26 per cent.22 Companies should aspire
to design systems that can manage these partnerships
How might resource
recovery be embedded KDD2 and new processes for material recovery, gaining a greater
understanding of the resources they recover from products
into customer and how they can optimize their re-introduction into the
propositions? INTEGRATION COMPLEXITY
PEOPLE
value chain.
Resource recovery depends on 1 Plastics Policy Playbook, Ocean 13 Circular Economy, ArcelorMittal
PROCESS
business models that allow for Conservancy, 2019
14 “Moving mountains for Earth’s sake at
outputs to return to the company TECHNOLOGY 2 Plastics Pact, Ellen MacArthur Caterpillar,” Greenbiz, 2013
Foundation
for reuse. Companies can strive 15 Extended Producer Responsibility
3 No Time to E-Waste, Accenture, 2020 Bills Gain Momentum, Retail Industry
for innovation in their product and Leaders Association, 2021
4 Why Scrap Metal Recyclers Need to
service offerings by incorporating technologies focused Know Their Steels, ThermoFisher 16 A planet-size plan, Apple
on visibility of material use after the point of sale. New Scientific, 2016
17 CircularID Protocol, Eon
opportunities to enable data flows between supplier and 5 The world's first 'infinite' plastic,
18 Re-defining Value -The Manufactur-
BBC, 2021
customer, through innovations such as connected devices, ing Revolution, UNEP International
Will there be more plastic than fish in Resource Panel
can support companies as they strive to recover materials or 6
the ocean by 2050?, CBC, 2019
19 Jaguar Land Rover Upcycles
prolong product lifecycles.
7 Who’s in the Network, Ellen Aluminum to Cut Carbon Emissions
Macarthur Foundation, 2022. by a Quarter. Jaguar Land Rover. 21
Caterpillar, for example, has developed maintenance
August 2020.
New Plastics Economy, Ellen
technology which enables their customers to monitor 8
Macarthur Foundation, 2016. 20 How Technology Makes Heavy
equipment health and performance. The technology Equipment Maintenance Easier.
9 The Future of Circular Fashion,
automatically identifies potential problems and can Accenture and Fashion for Good, 2019
MacAllister, 2022.
connect customers with local dealers for servicing. 10 Reverse Logistics: Reverse Logistics
21 ZigZag Mission Statement 2021.
ZigZag, 2021.
This, in partnership with other offerings around repair and Market, Allied Market Research, 2017
22 Jaguar Land Rover Upcycles
remanufacture, enables the extension of product life-cycles, 11 Helping Selfridges realise their
Aluminum to Cut Carbon Emissions
ambition to treat waste as a
while cutting costs for the customer and opening resource,Veolia
by a Quarter. Jaguar Land Rover. 21
August 2020.
revenue streams.20 12 The Cicular Imperative, Philips, 2022.
BENCHMARK
LAND DEGRADATION NEUTRALITY

INCLUDING ZERO DEFORESTATION
3, 6, 9, 12, 13

ON DEFORESTATION
This benchmark — land degradation neutrality including zero
deforestation — promotes land preservation practices to counter the While natural causes such as wildfires and
small-scale firewood collection play a part
impact of their business activities. Land degradation neutrality (LDN) is
in the overall loss, business activity is the top
defined as “a state whereby the amount and quality of land resources, contributor to deforestation and associated
necessary to support ecosystem functions and services and enhance land and habitat loss. In fact, deforestation
food security, remains stable or increases within specified temporal and is accelerating in many regions. Multiple
spatial scales and ecosystems.”1 Zero deforestation principles allow for initiatives are working in partnership with the
private sector to combat land degradation. The
conversion of forests at an equal area of replantation. The benchmark
Roundtable on Sustainable Palm Oil has more
helps businesses maintain or enhance their land-based natural capital and than 4,000 members working to develop global
its associated ecosystem services. standards for palm oil cultivation; which led to
the loss of 31 million hectares of forests in 2016
Deforestation threatens the survival of over 80 per cent of all terrestrial in Indonesia alone.3 Similarly, 12 forestry-
species of flora and fauna in forests while also contributing as much as 15 centric companies, together with the World
Business Council for Sustainable Development
per cent of global CO2 emissions.2 The benchmark encourages business to
(WBCSD), launched Forest Solutions Group,
map their land impact and leverage innovative practices to curb land and a global platform for the forest sector
habitat loss as a direct result of business activity in operations, products value chain.
and services, and along the value chain. The timeline to achieve land
degradation neutrality including zero deforestation is set by the Agenda
for Sustainable Development as 2030. 7K M2 of tree cover are lost each second, 25.8 Mha
of tree cover lost in 2020 4
Illustrative Industry Impact 8% of global emissions currently come from

tree cover loss in tropical forests; these
same forests can provide 23 per cent of
climate mitigation needed before 2030 5
Agriculture: Agricultural production Mining: Mining-related forest loss

accounts for 80 per cent of tropical caused roughly 10 per cent of all
and subtropical deforestation.7 To
safeguard existing forests, companies
Amazon deforestation between
2005 and 2015, with deforestation
75B tons of soil are lost from arable land each year
and an estimated $400 billion in agricultural
production is lost 6
need to develop alternative means of often occurring off-site to enable
agricultural production, increase ef- construction of related infrastructure.8
ficiency and run compliance programs Mining companies operating in forested
across their supply chains that involve regions should commit to eliminating
small producers, local communities, deforestation and adapting techniques
and other stakeholders. such as forest landscape restoration to
lessen the impact of their operations.
L A N D D E G R A D AT I O N N E U T R A L I T Y I N C L U D I N G Z E R O D E F O R E S TAT I O N
NATURA NESTLE TESCO

plans to source 30 per cent of all Nestle has committed to net-zero committed to net-zero deforestation
their raw materials sustainably deforestation by 2022. Currently, their sourcing of agricultural raw materials
from the Amazon rainforest by biggest challenge has been the com- by 2025. They implemented a zero
2020. It also seeks to generate R$1 pany's palm oil supplierts. However, deforestation Soy Transition Plan to
billion of revenue in the region by last year Nestle suspended five palm ensure that soy used as animal feed
the end of 2020. Natura developed oil companies from its supply chain for in the UK supply chain meets verified
an inclusive business model for a deforestation using Starling satellite zero deforestation criteria.11
range of its products that leverages technology developed by Airbus.
traditional community knowledge to Nestle also uses other methods like
put into practice the valorisation of supply chain mapping, certification
biodiversity assets whilst preserving and on-the-ground verifications
natural capital.9 to identify suppliers violating their
deforestation principles.10
Performance on the benchmark — achieving land degradation neutral- Mapping business activities and
ity including zero deforestation by 2030 — can be assessed in line monitoring forest deforestation and
land degradation: Identify the commodi-
with guidance provided by the United Nations Convention to Combat
ties used in your operations and the extent of
Desertification (UNCCD), the sole legally binding international agreement their impact on deforestation for the entire
linking environment and development to sustainable land management.12 supply chain. Identify and classify the areas
Few businesses today — just 21 per cent — have prioritized SDG 15, “Life in which the deforestation is occurring, for
on Land” in their sustainability strategy13 despite sustainable forestry example as high or low-risk regions.
management and soil health or regenerative management practices being
Use certifications as frameworks:
critical to business. Businesses that are not currently on track to achieve Determine the various legal and other
land degradation neutrality including zero deforestation by 2030 would certifications such as FSC and PEFC that
fall under the SDG Ambition Benchmark. the company would benefit from and use the
metrics of those certifications as frame-
works to develop your target. Companies can
connect the goals of zero deforestation with
the overall climate goals of the company.
Business Value
Participation in initiatives such as Zero Deforestation Zones could
reduce monitoring costs and enable premium pricing for companies
KEY RESOURCES
along the supply chain.14 Working towards zero deforestation can also
reduce the risk of penalties and fines. In 2018, one South American country WWF
levied $29 million in fines for various deforestation offences.15 Additionally,
WRI Global Forest Watch
according to CDP, up to $906 billion in annual corporate turnover is at
Forest Stewardship Council
risk because of deforestation.16
FAO

Chief Operations Officer / Chief Procurement Officer

Despite increased attention from leading companies to Engaging with technology partners, businesses can
land and forest impacts, there has been limited integration integrate these technologies to accurately measure
of these commitments into systems and decision making land impact, enabling:
due to two key factors.17 Firstly, complex and opaque
global supply chains means companies have not been
able to extend impact to suppliers. The OCED found that Supplier improvement
63 percent of suppliers do not have a deforestation policy. Pinpointing supplier risks through geospatial tools
In fact, a third of the 350 companies most exposed to highlights areas of risk and targets improvement
commodities such as palm oil, beef and timber have no decision-making.
policies to ensure they are not fuelling deforestation.18 The
result is a lack of visibility of land impacts in the value chain
as organizations do not know the farmers they source from, Long-term cost analysis
much less the impact they have on land. This creates the Land impact data enables integration of risk
second challenge: that businesses are not incorporating and cost analysis into product decisions.
the financial risks associated with land degradation into
core decision-making. Land degradation is not typically
considered a commercial priority, yet among respondents Measurement of positive impact
to CDP’s forest disclosure in 2018, 15 per cent of company Enhanced ability to assess current state of business
revenue is dependent on forest risk commodities such as land impact and then changes through avoidance,
cattle, palm oil and soy.19 prevention or restoration initiatives.
Companies must therefore pursue a better understanding

of their land impact to account for the risks and
opportunities it presents. Technologies including remote
77%
sensing tools offer new opportunities to better monitor of 1,500 companies active in commodities such as
timber, palm oil, cattle and soy do not disclose their
and manage land impact. Business can design their core impact on global forest loss.22
systems to integrate these tools to factor land impact into
decision-making.
SUPPLY CHAIN TRACEABILITY MEASURING RESTORATION
Satellite and geospatial mapping, paired with machine Effective restoration strategies require accurate and
learning and analytics, are increasingly used to trace up-to-date information regarding land health and progress
suppliers and areas of activity, enabling the collection of over long periods of time. Mining company Anglo American
land data in remote areas. Publicly available platforms partnered with Emapper, a technology company that uses
such as Trends.Earth; Farm-trace; and Global Forest drones to photograph land and artificial intelligence to
Watch leverage these technologies to provide companies, analyze the environmental conditions. This has enabled
NGOs and governments with data on land impact to inform them to undertake landscape scale assessments of
supplier engagement strategies. Partnerships such as the erosion, weed invasion and plant cover more safely, cheaply
SUSTAIN consortium use distributed ledger technologies and quickly, resulting in the development of detailed
to address commodity-level supply rehabilitation plans for their mine sites.21
chain challenges.20 * See more in SDG Ambition Integration Guide chapter on Preparing for Integration

VIEW THE
RAISING AMBITION
LAND DEGRADATION NEUTRALITY INCLUDING ZERO DEFORESTATION

PATHWAYS
AVOID REDUCE RESTORE

Eliminate deforestation and prevent land Reduce or mitigate land conversion or negative Reclaim area of land that was affected by
conversion and degradation impacts on habitat operational activities and restore
the environment
Implement Restrict Deploy Assess the Establish Encourage Establish Track Leverage
EXAMPLE ACTIONS
a zero activities that solutions for physical, management and plans for next restoration latest technol-
deforestation cause land predictive biological practices to incentivize use of land of land (e.g. ogy (e.g. big
policy degradation land use and economic mitigate land suppliers to (e.g. usage soil health, data, remote
across direct planning, impact of degradation address and after land fertility, monitoring,
operations track land product per impacts mitigate land closure in biodiversity) drone imagery
and supply impact (e.g. acre of land degradation mining) to assess
chain (e.g. scenario impacts quality of land
sourcing models) and natural
criteria) capital)
GOALS
Decrease in land used Increase of land employing

SUB
Increase of land restored vs. degraded

or affected land-positive practices
Fundamental: Hectares of land managed; Fundamental: Land positive practices and land Fundamental: Size/location of habitats restored;
Rate of deforestation in protected areas; use; per cent suppliers employing land management Proportion disturbed to restored land; Restoration
METRICS*
by third-party approval
Aspirational: Land productivity, nutrition Aspirational: Soil health across value chain
& pesticides profiles; Biodiversity capital Aspirational: Biodiversity impacts; Green cover
(flora and fauna) net impact; Valued societal impact of used land
PROCESSES
BUSINESS
MANUFACTURING PROCUREMENT & LOGISTICS, WASTE SALES & ENVIRONMENTAL

OPERATIONS & SUPPLY CHAIN TRANSPORTATION MANAGEMENT DISTRIBUTION MANAGEMENT
DETAILED LAND IMPACT IDENTIFYING MAIN SUPPLIER INTEGRATION FORECASTING LAND

ANALYSIS SOURCES OF LAND IMPACT IN AND TRACEABILITY IMPACT AND MONITORING
OPPORTUNITIES
Software tools and technologies PRODUCTS & PRODUCTION Driving efficient data flows IMPACT OF RESTORATION
SYSTEM
(e.g. land information systems, PROCESS with suppliers of land impacts ACTIVITIES
geographical information Product assessment tools (e.g. associated with their products. Embed restoration in the
systems) can support LCA) can analyze environmental Third party tools and land planning process for new sites
environmental analysis. impacts based on production mapping technologies support s and facilities by forecasting
process and material inputs. traceability and auditing. impact of activities.
KDD1 KDD2 KDD3 KDD4

How might you integrate How might you integrate land How might you integrate with How might you evaluate op-
advanced technologies and impact considerations into suppliers and third-parties portunities for restoration and
third party data sets to all aspects of the business? to ensure traceability of land use advanced technologies to
understand and monitor Land impact assessments and impacts in your supply chain? monitor progress?
land impacts? attributes need to be available Define process for supplier The use of tools, such as satellite
Data can be incorporated from across all sourced materials to provision of land impact data and or drone imaging, can be employed
third party sources (e.g. GIS layers drive decision making to minimize engage with individual suppliers to monitor and track restoration/
and data) to provide a more robust land impacts based on product on measures to improve vis- rehabilitation progress, especially
picture of aspects such as soil health composition and material inputs. ibility over practices (e.g. supplier in remote areas.
in areas of business operations. improvement programs ).

How might you How might you inte-
integrate advanced
KDD1 grate with suppliers
KDD3
technologies and third and third-parties to INTEGRATION COMPLEXITY
INTEGRATION COMPLEXITY
party data sets to PEOPLE ensure traceability of PEOPLE
understand and moni- PROCESS

land impacts in your PROCESS
tor land impacts? supply chain? TECHNOLOGY

TECHNOLOGY
Systems based on historical data and Understanding and improving your sup-
imagery, such as geographical informa- pliers land impacts is crucial to achieving
tion system (GIS) and remote sensing (RS), this benchmark. Internal processes can be defined for the suppliers
can help measure land degradation over time by tracking for the provision of the land impact data. While transitioning
indicators such as soil health. This offers deep insight into the land suppliers to sharing increased information may take time, publicly
properties and the change over time in areas of business activity. available data can be used as a starting point or proxy.
By understanding what land data is available in the public sphere Digital tools from third-parties, such as the World Resources
as well as private sector solutions, companies can make informed Institute (WRI) and World Wildlife Fund (WWF), can support
decisions about how to source and compile the outstanding data companies in assessing risks for land impact in supply chains,
needs. Understanding these technologies is also useful when enabling alerts for companies. Companies themselves can then
determining setup of data collection focused on the company’s employ and integrate GIS and RS to conduct digital audits, holding
own land use; the ability to connect a public data set with internal suppliers to account and creating as complete a picture of their
information on operations will support subsequent efforts to land impacts as possible.
understand the company’s impact.
How might you How might you evalu-

integrate land impact
KDD2 ate opportunities for
KDD4
considerations into INTEGRATION COMPLEXITY
restoration and use INTEGRATION COMPLEXITY
all aspects of the PEOPLE advanced technologies PEOPLE
business? PROCESS
to monitor progress? PROCESS
Land impact assessments are a Achieving land degradation neutrality
TECHNOLOGY TECHNOLOGY
way for businesses to drive more requires maintenance or enhancement
sustainable decision-making. Life cycle of land in use. However, opportunities for
assessments (LCAs) and Material Flow restoration of land already impacted by
Analysis are two examples of a methodology for performing a business activity is crucial for many industries including energy,
land impact assessment, with the goal of eliminating negative agriculture and mining.
impacts through land considerations being embedded in planning
Creating a comprehensive picture of your current state allows
processes.
companies to strategically plan for restoration, providing a
Analytics-enabled software tools streamline these assessments platform to then monitor progress on key restoration programs.
and enable them for large data sets. Integrating these into core Capabilities in GIS or drone imaging for assessment and trace-
systems enables the consideration of these attributes alongside ability can be utilized to monitor progress on an on-going basis.
other business measure of success. This allows leaders to
understand the costs and benefits of shifting a process to be less
land intensive, or to identify a previously unconsidered positive
12 UN Convention to Combat 17 Nearly 450 companies pledged to end
impact of a land-related decision. Desertification deforestation by 2020.
13 Deforestation: A business-critical 18 A third of commodity-hungry firms
1 UN Convention to Combat Desertification 6 Global Soil Partnership, FAO issue for the world’s biggest buyers, have no deforestation policy, Simon
CDP, 2017 Jessop, 2022
2 Deforestation and Forest Degradation, 7 Yale University Global Forest Atlas
World Wildlife Fund 14 Zero Deforestation Zones, Journal of 19 The Money Trees: The role of corporate
8 New Amazon threat? Deforestation from Sustainable Forestry, 2015 action in the fight against deforestation,
3 Cutting Deforestation Out of Palm Oil: mining, Gund Institute for Environment, CDP, 2019
Company Scorecard, Greenpeace, 2016 15 “$29 million deforestation fines: game
9 Natura changer for Brazilian soy trade?” 20 Sustainability Assurance & Innovation
4 Global Forest Watch 10 Nestlé extends its zero deforestation Mongabay, 2018 Alliance
5 By the Numbers: The Value of Tropical target to 2022, SWI, 2021
16 Deforestation: A business-critical 21 Anglo American Sustainability
Forests in the Climate Change Equation, 11 Tesco announces its plan for zero deforesta- issue for the world’s biggest buyers, Report 2019
World Resources Institute, 2018 tion soy, Consumer Goods Forum, 2018 CDP, 2017
22 The Money Trees, CDP, 2019
BENCHMARK
ZERO INCIDENCES OF BRIBERY

Cross-cutting
Benchmark Information BUSINESS IMPACT ON BRIBERY

The UN Global Compact has nearly a decade
The zero incidences of bribery benchmark helps organizations
of experience in Anti-Corruption Collective
eradicate and prevent instances of corruption and bribery, including Action. The 10th Principle of the UN Global
any behaviors that abuse entrusted power for private gain. The Compact commits business to work against
benchmark helps address practices that raise compliance and corruption in all its forms, including extortion
and bribery. Companies must join Govern-
reputational risks, reduce overall consumer trust and impact ments, the UN, civil society and other relevant
the bottom line.1 In addition to strict policies and procedures, stakeholders to realize a bribery-free and more
management systems calibrated to identify and prevent corruption transparent global economy through collective
action. In 2019 with funding from the Siemens
can greatly reduce overall incidents of bribery. At a minimum,
Integrity Initiative, the UN Global Compact
companies must set targets to eradicate incidents of bribery within launched the four-year project Scaling up
their direct operations as soon as possible with longer-term goals Anti-Corruption Collective Action within Global
to target incidents of bribery across the value chain by 2030. Compact Local Networks to support collective
actions from Global Compact Local Networks
and promote public-private cooperation in
Corruption encompasses a wide range of activities that includes fighting corruption.
bribery as an important subset. In addition to impeding economic
growth as well as distorting market competition, bribery has a
disproportionate impact on individuals in poor communities who
pay as high as 13 per cent of their income in bribes according to
the World Bank.2 For example, an estimated 25 per cent of Africa's
$3.6T lost to bribes and stolen
money annually5
gross domestic product (GDP) is lost to corruption alone.3
-12% in zero-tolerance corrup-

tion policies to 51 per cent
Illustrative Industry Impact among UNGC participants

from 2018–20196
Infrastructure and Construction: Financial Services:
The infrastructure and real-estate In the decade since the financial crisis,
43/100
industry could lose over $6 trillion banks have paid more than $300 billion the average country score
between 2020–2030 due to incidents in fines, regulatory settlements and across 180 nations on
of corruption, including bribery.4 Global associated legal costs: more than 40 the Corruption Percep-
construction output is expected to per cent of their “pre loss” earnings. tions Index7
grow to approximately $17.5 trillion While many institutions have focused
annually by the year 2030, indicating on building a tightly controlled compli-
corruption losses could total about 34 ance culture since, companies need to
per cent of growth in that period. invest more in the drivers of ethical and
responsible decision-making to prevent
future ethical lapses.


Companies who wish to address bribery can do so through establishing, implementing,
and enforcing robust policies. Putting policies in place helps companies to proactively address bribery.
MICROSOFT 3M
Invested in on-premise and cloud-based data analytic Prohibits bribery and corruption across its operations.
solutions that use advanced statistics and artificial Their Anti-Bribery Principle complies with all global
intelligence to create an early warning and monitoring anti-bribery laws globally and is applicable to company
system for corruption risks. Its goal is to identify and employees as well as third party employees acting on
review sales transactions and third parties that create the their behalf. As a member of the UNGC Working Group on
highest bribery and corruption risk and provide additional the 10th Principle9 3M has voluntarily disclosed internal
oversight of these transactions and representatives.8 investigations of possible violations to enhance their
anti-corruption compliance program.10

Performance on the benchmark — achieving zero incidences of Demonstrate commitment by
bribery — can be assessed in line with the objectives of the United establishing strong policies: Set a
zero-tolerance policy against the use of
Nations Convention against Corruption (2005), the UN Global
manipulation, illegal conduct (e.g. bribery,
Compact’s 10th Principle and OECD’s Convention on Combating misrepresentation) and establish corrective
Bribery of Foreign Public Officials in International Business procedures for such conduct to show
Transactions. Research by the UN Global Compact indicates employers, suppliers, and customers that
you have a zero-tolerance policy. Employee
that only 25 per cent of companies conduct anti-corruption as-
and business partner training on policies
sessments today.11 Forensic data analytics can help improve the is imperative.
detection and investigation of bribery incidents, along with identify-
ing gaps in internal controls. Businesses that have not established Establish anti-bribery management
systems: Develop robust systems based
clear whistleblower protections, independent due diligence on a properly documented bribery risk
mechanisms, transparent contracting procedure or identified assessment, reviewed on a regular basis and
systems opportunities to combat bribery by 2030 would fall below designed to prevent and detect bribery risk to
the company.
the SDG Ambition Benchmark.
Implement standardized and auto-
matic procedures: Establish automated
employee background clearance including
Business Value immigration or visa status and past criminal
records. Develop standardized models or
In addition to exacerbating social inequalities, cases of bribery guidelines (e.g. licenses and contract terms).
tarnish brand image. A study of 25,000 global consumers found
that, of customers who switched companies in the past year, 46
per cent did so because they lost trust in the company.12 Ethical KEY RESOURCES
conduct can also save expenditure on settlements and penalties: In
2019, a global retailer paid nearly $300 million in fines in the United UNGC Anti-corruption
States for allegedly allowing subsidiaries to employ third-party UNGC Anti-corruption risk assessment
intermediaries who paid bribes.13 OECD Anti-corruption and Integrity Hub


Chief Compliance Officer

To achieve the ambitious benchmark of zero bribery, The development of technological solutions in curbing
companies must rigorously manage the risks and corruption and bribery has empowered companies to
occurrences of bribery across employee and business track instances predictively and in real-time rather
partner activity. By transitioning to real-time monitoring than only identifying breaches retrospectively.
and alerts of bribery risks, companies can advance In collaboration with technology partners, companies
management and prevention efforts in pursuit of the can strengthen:
zero incidents goal. Technologies such as artificial
intelligence, blockchain and analytics can help identify,
predict and prevent these breaches by increasing Automation of risk monitoring and
the availability and analysis of large volumes of data
predictive action
connected to an organization’s transactions, region,
pricing patterns and supplier credentials.14 More Risk analytics can be automated to flag types of
companies are capitalizing on these technologies, transactions such as payments to public officials, sup-
with 84 per cent of respondents to AlixPartners 2019 pliers, and frequency in high-risk regions with pattern
Anticorruption Survey reporting that that they monitor recognition and machine learning capabilities to bolster
suspicious behavior in real time, up approximately 15 per risk comprehension.
cent over the prior year.15
Employee engagement
Illustrations of Integration Central learning systems can track and encourage

employee engagement with anti-bribery training
programs, while also deriving key insights from
REAL-TIME MONITORING
employee interaction to develop future modules.
Monitoring and tracking analytics tools can enable
real-time management of bribery. These forensic tools
go beyond flagging compliance breaches (such as Continuous learning
building risk reports and collating audits trails) to
actively identifying anomalies in historical and pending Ability to reframe anti-bribery and corruption policies,
transactions. Third-party tools such as the Corruption disciplinary procedures, and whistleblower protections
Perception Index can assist this mapping by providing based on data driven insights from digital monitoring
scores for regions with higher risks of bribery.16 Platform and workforce ethics assessments.
solutions such as SAP ARIBA can support businesses
in prioritizing suppliers which practice ethical trading
standards including anti-bribery regulations.17
90%
ADAPTIVE LEARNING AND IMPROVED SENSITIZATION
When it comes to bribery, the costs of poor training are high.

Forbes estimates that 10 per cent of all corporate learning
is effective.18 Companies can improve learning among of matters alleging bribery in the
employees by leveraging intelligent learning systems that United States are related to the use of
encourage engagement with training and which provide third-party intermediaries.19
insights into existing levels of employee comprehension.
*See more in SDG Ambition Integration Guide chapter on Preparing for Integration


VIEW THE
RAISING AMBITION

PATHWAYS
RISK ASSESSMENT SENSITIZATION ENFORCEMENT & COMPLIANCE

Define specific company risks Run training courses and implementation program Reporting of incidents and auditing of reports,
and review current practices to make all employees aware of the company policy with documented remediation and disciplinary
procedures
Establish Develop an Review abil- Communicate Run training Obtain Develop Establish Capture
EXAMPLE ACTIONS
regular anti-bribery ity of service anti-bribery courses for commitments whistleblow- disciplinary knowledge
reviews of program and functions to policy and all employees from all ing channels procedures from incidents
risks and integrate into support zero program and business employees for and track and report,
existing organizational bribery policy / internally and partners and leadership raising issues incidents and including
processes structure, program externally to zero bribery (internally and response third-party
assigning externally) audit)
responsibilities
GOALS
Employees &
SUB
Mitigation of bribery risks Reduction in confirmed incidents

business partners trained
Fundamental: Operations assessed for risk; Fundamental: Stakeholders trained in anti-bribery Fundamental: Incidents by outcome (e.g.
Total risks identified; and mitigated subdivided by group (e.g. board; employee level; dismissal;) and by responsible party (supplier,
METRICS*
business partner) employee); Total cost of breaches

Aspirational: Total risks identified before
completion of transaction Aspirational: Total employees and suppliers Aspirational: Total whistleblowing
who understand policy reports actioned
PROCESSES
BUSINESS
SUPPLY CHAIN & RISK LEARNING HUMAN RESOURCES

PROCUREMENT MANAGEMENT MANAGEMENT (ADMINISTRATION)
LEVERAGE YOUR RISK CATALOGUE ASSIGNMENT AND TRACKING APPLY MACHINE LEARNING
OPPORTUNITIES
TO AUTOMATE EARLY DETECTION OF ANTI-BRIBERY TRAINING FOR CONTINUOUS IMPROVEMENT

SYSTEM
Develop a robust risk catalogue and profile Automate the assignment of anti-bribery Tools such as machine learning can be ap-
around bribery, which can be used training with the ability to differentiate this plied in the evaluation of data sets, such as
to automate monitoring across sub-group of “Ethics & Compliance” training bribery incident data, to uncover previously
the organization. from other areas. unknown trends or commonalities.
KDD1 KDD2 KDD3

How might you leverage your compli- How might you automate your learning How might you leverage data related to
ance risk data to automate the flagging management system in assigning recorded instances of bribery to better
and escalation of potential instances anti-bribery training and tracking prevent future occurrences?
of bribery? completions? Information and data captured when incidents
Compliance risk data can be used to Having a mechanism to automatically assign of bribery occur can be used to help your
categorize and flag potential compliance anti-bribery trainings to individuals at all organization uncover additional factors that
issues, and AI can be implemented to levels within the organization, as well as can lead to occurrences of bribery.
monitor and analyze transactions or automating assignment of refresher courses
expenses for potential cases of bribery or at defined intervals.
non-compliance.


How might you lever- How might
age your compliance
KDD1 you automate
KDD2
risk data to automate INTEGRATION COMPLEXITY
your learning INTEGRATION COMPLEXITY
the flagging and es- PEOPLE management PEOPLE
calation of potential PROCESS system in assigning PROCESS
instances of bribery? TECHNOLOGY

anti-bribery training TECHNOLOGY
Operating in a global environment

and tracking
and with a high volume of daily completions?
transactions, automation of compliance monitoring
A critical component to any anti-corruption program
can help ease the burden of manual inquiries, which can
is proper communication and training of all members
enable your business to proactively perform due diligence
of an organization, including board members. These
on transactions, partnerships or agreements that are
anti-bribery trainings should have completion deadlines
flagged as high risk. This automated monitoring can equip
and reporting solutions put in place to provide real-time
your anti-bribery team with relevant data elements to
visibility into training completion compliance.
support their investigation into potential bribery cases.
Continuous monitoring solutions can process large When building and maintaining anti-bribery training
volumes of expenses and accounts payable, flagging internally is not an option, there are numerous third-party
transactions where a vendor may be on a sanctioned list providers that provide up-to-date interactive training
or transactions in high risk countries. content, as well as self-assessment and self-declaration
tools. Content from such providers can be accessed via
In instances where an organization may not be equipped
software-as-a-service solutions or integrated with an
to build, manage and apply their own anti-bribery risk
organization’s existing learning management system.
catalog, third-party solutions are available that can
provide varying degrees of analysis and monitoring based
on an organization’s specific needs.
1 The Bottom Line on Trust, 13 “Walmart to pay $283 mn fine in US
Accenture, 2018 over bribery charges in India, other
countries,”
2 Combatting Corruption, World
How might you
Mint, 2019
KDD3
Bank, 2018
14 Four ways to use data analytics
leverage data 3 Effects of corruption, UNODC, 2019
to identify corruption red flags,
Tableau, 2019
4 Corruption in construction, IGC,
related to recorded INTEGRATION COMPLEXITY
2016
15 2019 Global Anticorruption Survey,
instances of bribery PEOPLE 5 Corruption is costing the global
economy $3.6 trillion dollars every
Alix Partners
to better prevent PROCESS

year, World Economic Forum, 2018
16 2019 Corruption Perceptions Index,
Transparency International
future occurrences? TECHNOLOGY

6 2019 UNGC Progress Report. UN
Global Compact, 2019.
17 Supplier management: Made
Simple with Software and
7 Corruption Perceptions Index 2019. Solutions, SAP
As an organization monitors and Transparency International, 2019.
18 “Companies waste billions of
investigates potential instances of 8 Our commitment to anti-corruption, dollars on ineffective corporate
bribery, an informational feedback loop should be built into Microsoft training,” Forbes, 2016
key systems. When instances of bribery or non-compliance 9 Working together to prevent 19 Foreign Corrupt Practices Act
corruption, 3M, 2020 Clearinghouse, Stanford Law
are identified, machine learning can be used to identify School
10 “3M Probes Potential FCPA
trends and contributing factors, which then can be used Violations in China,” The Wall Street
to strengthen the risk catalog or identify additional Journal, 2019
needs regarding training and sensitization. In this way, an 11 UN Global Compact Anniversary
Report. UN Global Compact, 2020.
organization can design for continuous improvement and
12 The Bottom Line on Trust,
better enhance their monitoring capabilities to proactively
Accenture, 2018
identify and stop potential instances of bribery.

SDG AMBITION BENCHMARK REFERENCE SHEET
Supported by:
BENCHMARK
EQUAL PAY FOR WORK

OF EQUAL VALUE
1, 5, 8, 10 2030
Ambition Benchmark Information UNDERSTANDING THE

DIFFERENCE BETWEEN EQUAL
The principle of equal pay for work of equal value means that rates and types of remuneration
should be based not on an employee’s sex but on an objective evaluation of the work performed.1 PAY FOR WORK OF EQUAL VALUE,
Equal pay is a recognized human right, to which all men and women are entitled.2 The principle of AND THE GENDER PAY GAP
non-discrimination in respect of employment and occupation — Principle 6 of the Ten Principles of
Equal pay and the gender pay gap are not the same.
the United Nations Global Compact — includes the principle of equal remuneration.3
A gender pay gap is the difference between median
This ambition benchmark will help organisations to ensure that women and men working in earnings of men and women relative to median earn-
identical or similar jobs receive the same pay. Pay equity is about fairness in pay. The principle of ings of men, irrespective of their role or seniority.5 It
equality pertains to all the elements of remuneration, including salary or ordinary wage and other therefore captures any pay differences between men
basic fees and benefits, directly or indirectly paid, in money or in kind. The pay package may also and women on a broader level, not within the same or
include bonus and commissions, as well as other benefits such as housing allowance, health and a comparable role. For example, an organisation that
life insurance, company car, mobile phone and laptop. is over-populated by men in senior roles and women in
junior roles will have a gender pay gap. A company can
Paying women less than men for the same work or for work of equal value is a common form of have an effective equal pay policy, but also still have
discrimination in employment. Unequal pay is a stubborn and universal problem. Ever since they a gender pay gap. For these reasons, this benchmark
entered the labour force, women have, in general, been paid less than men. Current estimates will focus on ensuring equal pay rather than closing
state that women globally are paid 22% less on average than men. 4 Part of this difference in gender pay gaps.
remuneration can be explained by factors such as education and training, work experience,
enterprise size and union density. Yet much remains unexplained, which reflects persistence of
gender stereotypes that create a bias in the assessment of job components and the respective
value of work. This leads to huge disparities in earnings over lifetimes, that continuously reinforce
women’s unequal position in the labour market and the workplace. Promoting equal pay will 77 the amount of cents earned by women for
every dollar earned by men.6
help to address an important cause of the gender pay gap, namely, pay discrimination. It also
contributes to enhancing overall gender equality in the world of work.
Achieving equal pay for work of equal value is critical for achieving a number of the Sustainable 2.5x the amount of women carrying out unpaid
work compared to men.7
Development Goals (SDGs), particularly Goal 5 ‘Achieve gender equality and empower all women
and girls’ and Goal 8 ‘Decent work and economic growth.’ Reaching this target of equal pay for
work of equal value requires that companies undertake a thorough analysis of their existing
remuneration functions, before following this with a series of initiatives to eliminate bias across 88 the number of countries with mandated
equal remuneration for work of equal value.8
talent management and implement corrective pay actions where required.
llustrative Impact The Women’s Empowerment Principles

(WEPs) offer guidance to companies on how
Energy sector impact: Wages for women in Legislative impact: In Canada, the Pay to promote gender equality and women’s
energy are 19% lower than for men. DELSUR, Equity Act of 2018 establishes a groundbreak- empowerment in the workplace, marketplace
an electricity company in El Salvador, is ing pay equity regime within the federal public and community.
conducting a sectoral study to determine the and private sectors. This act is the first time Jointly established by UN Women and the UN
current status and future prospects for gender Canada will federally regulate public and Global Compact, the WEPs are grounded in
equity in the Salvadoran electricity sector. private entities with ten or more employees international labour and human rights standards
This effort will allow the sector to collect sex to proactively ensure equal pay for work of and the recognition that businesses have a stake
in, and a responsibility for, gender equality and
disaggregated data on the number of women equal value.10 Similarly, in the United Kingdom,
women’s empowerment. Principle 2 “Treat
currently working in the sector and will identify the Equality Act 2010 gives both women and all Women and Men Fairly at Work without
areas of pay inequity to articulate efforts to men the right to equal pay for equal work, with Discrimination” encourages companies to, among
achieve a sectoral roadmap towards equality in women and men being legally entitled to be paid other things, pay equal remuneration — including
remuneration between men and women.9 at the same rate for like work, work rated as benefits and bonuses — for work of equal value and
equivalent, and work of equal value.11 ensure at a minimum a living wage for all women
and men employees.12
EQ UA L PAY FO R WO R K O F EQ UA L VA LU E
PAYPAL TSKB SAG

Has committed over $100 million to Has encoded a new Gender Equality Servicios Ambientales y Geográficos SAG
advocate financial inclusion and the Policy, which discloses the overall female S.A conducts regular pay equity audits to
economic empowerment of women and workforce and Gender Pay Gap alongside identify possible inequalities in pay based
girls. Starting with the United States, the representation in the Board of on gender. When an inequality in men’s and
their plans include conducting an annual Directors. The policy has tasked their
women’s salaries in leadership positions
assessment of the company's policies Sustainability committee with overseeing
at SAG was determined, SAG launched a
and benefits regarding pay equity, paid progress towards Gender Equity, including
leave and caregiver support to meet or allocating financial and social capital to programme for women to take postgradu-
exceed best practises. 13 Additionally, in implement corrective action alongside ate classes so they can move to higher
2021 PayPal’s Compensation Committee establishing connection with academics management positions and earn better
began embedding diversity and inclusion and NGO’s to collaborate on Pay Equity pay. SAG also launched a free wage equity
considerations into their executive improvements. The company has since tool so all companies can run a salary gap
compensation program. As of 2022, made its first public report of the Gender analysis and create strategies to ensure
PayPal have reported mean hourly pay Pay Gap sitting at 0.087%. 15 equal pay for work of equal value. 16
gap sits at -0.8%. 14

Planning for the financial and human resources that will
Performance on the ambition benchmark — achieving Equal Pay for Work of Equal Value —
be needed to close the pay gap: Companies should allocate
should include the assessment of monitoring the remuneration difference between men a budget to gradually eliminate the differences in remuneration
and women in jobs that are the same or similar, or that are different but of equal value. between women and men. A portion of the budget should go to
There are six core pay gap measures which should be supplemented further with one-off individual adjustments in cases where pay inequality
an analysis of gender disparities across additional compensation types and benefits: explained by gender discrimination are found. Otherwise, holding
a portion of the yearly payroll budget to be applied at the end of
• The mean (average) gender pay gap in hourly pay in jobs that are the same or the annual salary review will help further reduce any possible
similar, or that are different but of equal value inequalities between jobs that are the same or similar value. 20
• The median gender pay Gap using hourly pay in jobs that are the same or Determining the procedures for the training to be
similar, or that are different but of equal value provided: Pay equity depends both on technical knowledge in
• The percentage of men and women receiving bonus pay the areas of job evaluation and remuneration and on knowledge
related to discrimination, stereotypes and prejudice with regard
• The mean gender gap in bonus pay in jobs that are the same or similar, or that to women’s work and the causes of inequality based on sex.
are different but of equal value Pre-programme training will be necessary for those who will
• The median gap in bonus pay be in charge of implementing pay equity. It is thus important to
decide who will give this training and how it will be carried out. 21
• The percentage of men and women in each hourly pay quarter in a ranking of
your employees from lowest to highest-paid per hour 17 Establishing a communication strategy: Given that a pay
equity programme pertains to a very delicate matter, it will be
important to make sure that employees’ fears are eased as
much as possible. It is often recommended that a communica-
Business Value tion strategy be established from the beginning of the process
in order to prevent rumours or uncertainties from developing. 22
Equal pay for work of equal value increases growth, competitiveness and sustainability Assess the value of jobs: Jobs in your company can be
for companies and the economy at large. different from one another – in terms of skills, qualifications,
responsibilities, effort and working conditions – but may be
Respect human rights and a commitment to decent work: Commitment to pay equal in value. Start with drawing up a list of the jobs in the
equity is a commitment to decent work and to economic success. Women's skills are enterprise and determine whether these jobs are male- or
recognized and their job tasks are accorded value. Equal pay can also help eliminate female dominated. Select a methodology to assess, identify
negative gender stereotypes regarding women’s contributions to business. and objectively compare the relative value of work, using
gender-neutral criteria and develop job evaluation systems
Enhance company reputation internally and externally: Companies that actively to avoid prejudices or stereotypes based on sex.
ensure equal pay tend to have a reputation for being more innovative and a great place to
work. Now more than ever, this is key as shareholders and stakeholders, including younger KEY RESOURCES
employees, express heightened expectations of the companies they work for, buy from
and earmark for investment. 18 ILO, Equal Pay - An Introductory Guide
Attract and retain the best talent: Workers are choosing to align themselves with ILO Gender-Neutral Job Evaluation For Equal Pay
organizations that have values that match their own. Companies that value fairness for all
workers and address fair remuneration regardless of gender can help attract and retain WEPs Closing Gender Pay Gaps
the best talent. Nearly two-thirds (61%) of women would take an organisation's gender pay
ILO Achieving Pay Equity In Your Company
gap into consideration when applying for jobs. 19
Principle 6 Non-Discrimination - E-Module


This section provides directional guidance on how you can ESTABLISHING A PAY COMMITTEE
design your technology systems to achieve Equal Pay for Forming a Pay Committee is critical to ensuring progress
Work of Equal Value through the structured process of a Pay and commitment to a Pay Equity Plan. It is recommended
Equity programme.23 The process is end-to-end, covering all that these Pay Committees include significant employee
elements of an initial diagnosis Equal Pay for Work of Equal presence including their worker representatives from
Value to corrective actions, executive accountability and different hierarchical levels and 50%+ female presence. 25
continuous improvement. The committee should receive a training and should acquire
comprehensive knowledge of the jobs across the business.
Initial evaluation involves establishing the data infrastructure Their role will involve reviewing promotional and recruitment
to evaluate the current pay gap across a series of defined decisions, addressing employee concerns and complaints
metrics, leading to a conclusion about whether or not a alongside developing in-house expertise in areas of equality
Gender Pay Gap exists between jobs of equal value. Through and job evaluation. In a small organisation, joint participation
using technologies such as data analytics and machine can take the form of a very small committee composed, for
learning, companies can effectively collate the requisite example, of one employer representative and two employee
sex-disaggregated data and automate calculations to representatives.26
deliver real time visibility of their pay gaps.
GENDER NEUTRAL JOB EVALUATION

A gender neutral job evaluation accurately and deliberately
Journey towards Integration captures and values the content of skill, effort, responsibility and
working conditions of the work as they relate to both male and
There are a number of Human Resources systems and tools
female job classes. The job evaluation consists of different steps:
than can help companies track and monitor remuneration
for jobs or the same or similar value. Business leaders should 1. Selecting which jobs to compare: Drawing up a list of the
engage their technology partners to pursue integration goals, jobs in the enterprise, followed by determining whether
such as: these jobs are male- or female-dominated identify which
jobs within the enterprise are female-dominated, since
Real-Time Remuneration Systems these jobs are likely to be subject to wage discrimination.
Creating a full and accessible view of sex-disaggregated data 2. Select a gender-neutral job evaluation method to assess,
for jobs of the same or similar value based on real-time data. based on common criteria, the characteristics of the jobs
within an enterprise in order to establish their relative
Talent Management Transparency value.
Ensuring visibility and oversight of recruiting and talent 3. Collecting information on the content of each job based on
management decisions. the factors selected. This can be through a questionnaire
circulated among all employees to collect information on
Impact Measurement and Continuous task descriptions and responsibilities.
Improvement 4. Determine the value of jobs: Construct a weighting grid and
Tracking success of initiatives and identifying opportunity assigning points to the jobs. The weighting of evaluation
areas to further drive equal remuneration. factors involves determining their relative importance and
assigning a numerical value to each of the.m
5. Estimating wage gaps for jobs of equal value and making
Only35% of enterprises worldwide have a Pay Equity

process that is built on a robust statistical approach. 24
pay adjustments.

VIEW THE
RAISING AMBITION
IDENTIFY RELEVANT AMBITION BENCHMARKS BASED ON PRIORITIES
ADDRESS DISCRIMINATION IN REMUNERATION TALENT POLICY & PROCEDURES REPORTING & COMMUNICATION
PATHWAYS
Ensure that women and men receive equal Establish the relevant Human Resources led Regularly disclose progress on equal pay to
remuneration for the same or similar work and initiatives and governance mechanisms to tackle the broader ecosystem and foster a culture of
for work that is different but of equal value. gender bias across the talent life cycle transparency
Proposed Roadmap of implementing Reassess Review promo- Human Report on Publish salary Publish pay
recruitment tion policies, Resources to Gender Pay ranges with gap metrics in
EXAMPLE ACTIONS
a pay equity programme:

procedures for i.e., including set aside budget Gap analyses external job annual report
1. Establish a Pay Committee bias—opting multiple for adaptations to explain the postings to communi-
2. Undertake a Gender Neutral Job Evaluation for structured women in needed to rec- causes of any cate progress
to help set up a rational and fair pay structure, interviews, promotional tify outcomes pay gaps and positive
including identifying jobs where men and women skill and shortlists and of remuneration shown and the impact on your
are doing work of equal value and comparing experience- holding talent gap analyses action plan to company and
their remuneration. based assess- decisions via close them culture
3. Estimate wage gaps for jobs of equal value and ments and a Diversity
making pay adjustments salary decisions taskforce
GOALS
Conduct regular audits on pay equity

Annually review and publish salary ranges
SUB
Equal Gender balance in promotional shortlists

(at least every five years )
Fundamental: Salary and bonuses by gender Fundamental: New staff by Gender; Promotions Fundamental: Progress in closing pay gap
by level and gender by department
METRICS*
Aspirational: Employee benefits by gender Aspirational: Candidates interviewed by gender; Aspirational: Changes to staff turnover by
and geography (e.g. health insurance, subsidized Flexible work plans by gender; Hours of diversity gender; Resulting changes to job satisfaction
transport etc.) and inclusion gender training surveys
PROCESSES
BUSINESS
HUMAN MARKETING & COMPENSATION WASTE TRAINING & LEGAL &

RESOURCES COMMUNICATIONS ADMINISTRATION MANAGEMENT DEVELOPMENT COMPLIANCE
AUTOMATING CALCULATIONS OF CHALLENGING BIASES IN TALENT INTEGRATING GENDER GAP

REMUNERATION GAP MANAGEMENT & STRUCTURE ANALYSES IN REPORTING
OPPORTUNITIES
Data analytics, tools and systems can Redesign key talent functions to improve Effective reporting and transparency can
SYSTEM
help simplify the process of calculating Diversity and Inclusion alongside equity improve brand reputation, attract top talent
employee compensation data (e.g. salary, whilst attracting top talent and improving and encourage wider progress across the
bonuses, benefits), providing HR with real the overall employee experience industry and ecosystem
time visibility of the pay gap
KDD1 KDD2 KDD3

How might you aggregate and automate How might you restructure your talent How might you optimize reporting
the relevant pay and compensation gap processes to eradicate bias and track content and cadence to foster a culture of
calculations? progress? transparency?
Having completed a comprehensive gender Standardisation of recruitment and promotion Companies must align on one or a number of Pay
neutral job evaluation, companies must define the procedures, such as formalising interview Gap reporting frameworks, to communicate year-
key metrics to track for their pay gap analyses and questions and reviewing promotions, alongside on-year progress towards their goals. and how
employ technologies and tools to automate this taking proactive measures to identify and best to link this to business value metrics such as
monitoring process. This methodology should be optimize these procedures to increase female productivity, job satisfaction scores, increase in
both transparent and auditable, and should alert candidates. Additional targeted action should job applications and retention rates. Companies
HR and leadership to instances of inequity. be taken in accordance with the outcomes of the should also consider other external communica-
Pay Gap analyses such as correcting individual tions, such as redesigning job advertisements and
scenarios of unequal remuneration. contracting policies.

How might you How might you opti-
aggregate and au-
KDD1 mize reporting ca-
KDD3
tomate the relevant INTEGRATION COMPLEXITY
dences and content INTEGRATION COMPLEXITY
pay and compensa- PEOPLE to foster a culture of PEOPLE
tion equality calcula- PROCESS transparency? PROCESS
tions? TECHNOLOGY
A number of countries have or are about
TECHNOLOGY
to implement gender-disaggregated
Tracking pay and bonuses will require
pay reporting requirements for private
access to payroll platforms whilst
sector companies, with a further several
monitoring additional benefits might require access to
countries requiring mandatory pay for work of equal value.30
additional siloed data across your Human Resources and
Companies must utilize additional internal and external data
Operational functions.
to help explain extenuating circumstances leading to pay
Enterprise software tools embedded with analytics capabilities inequalities, such as freezes is recruitment or market-related
can enable companies to intelligently combine data sets to gain adjustments, alongside explaining the plan and initiatives to
a more real-time, granular view of employee data and visualize eliminate them. 31
them in accessible dashboards. Mature data flows can help
In addition, companies should share the positive outcomes
automate the calculations and alert HR to instances of inequity
that progress has on the business, to demonstrate genuine
across pay and benefits.
commitment and activism in achieving equal pay to the wider
ecosystem. This requires maturity in systems of data collation
across productivity, retention and turnover as well as employee
How might you and customer satisfactions to correlate with progress on
restructure your
KDD2 ensuring equal pay.
talent processes to INTEGRATION COMPLEXITY 1 ILO 20 Closing Gender Pay Gaps, Women’s
eradicate bias and PEOPLE 2 Universal Declaration of Human
Rights (UDHR)
Empowerment Principles
21 Gender-Neutral Job Evaluation For
track progress? PROCESS 3 Ten Principles of the UN Global Equal Pay: A Step-by-Step Guide,
ILO, 2008
Compact
Taking action to ensure equal pay for 4 Closing Gender Pay Gaps, Women’s 22 Gender-Neutral Job Evaluation For
TECHNOLOGY Equal Pay: A Step-by-Step Guide,
work of equal value will involve tackling Empowerment Principles
ILO, 2008
5 Equal Pay International Coalition
structural and cultural barriers across 23 Gender-Neutral Job Evaluation For
6 Equal Pay for Work of Equal Value,
your business. Examples of corrective UN Women
Equal Pay: A Step-by-Step Guide,
ILO, 2008
action include using structured, gender-neutral interviews for 7 Redistribute Unpaid Work, UN Women 24 2016 Global When Women Thrive
recruitment and promotions, opting for skill-based assessment 8 Gender Wage Gap, OECD Data Report, Mercer, 2016
tasks in recruitment, including multiple women in promotional 9 DELSUR Seeks to Reduce the Gender 25 Gender-Neutral Job Evaluation For
Gap with Educational Programs, Equal Pay: A Step-by-Step Guide,
shortlists, offering work flexibility options and eradicating gender 2021 ILO, 2008
specific language from all remuneration documentation.27 10 Canada: Pay Equity Act, WEPs 26 Tackling Sex Discrimination through
Pay Equity, ILO
11 UK Government Equality Act
Artificial Intelligence and natural language processing tools 27 Reducing the gender gap and improv-
12 Women’s Empowerment Principles
can help automate these processes by identify gender biases ing gender Quality in organisations,
13 PayPal Commits Over $100 Million GOV.UK
in job adverts and documentation across Human Resources.28 to Advance Financial Inclusion and
28 Gender Bias Reducing and Semantic
Economic Empowerment of Women
Smaller companies can look to e-learning platforms to help and Girls, 2021
Information Preserving, Ding, Yu, Xie
& Guo, 2021
equip their talent management team and wider workforce with 14 UK Gender Pay Gap Report 2022,
29 Reducing the gender gap and improv-
Paypal
unconscious bias training. 29 ing gender Quality in organisations,
15 TSKB, Gender Equality Policy GOV.UK
16 SAG, Automated Analysis of Wage 30 Gender Equality at Work, OECD
Equity with a Gender Approach iLibrary
17 Gender Pay Gap Reporting and The 31 Gender Pay Gap Reporting and The
Covid-19 Pandemic, CIPD, 2022 Covid-19 Pandemic, CIPD, 2022
18 Deloitte Global Millennial Survey,
2019
19 Gender pay gap determines women’s
choice of employer, Equality and
Human Rights Commission, 2018

SDG Ambition Benchmark Reference Sheets All

Uploaded by

Copyright:

Available Formats

SDG Ambition Benchmark Reference Sheets All

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

SDG Ambition Benchmark Reference Sheets All

Uploaded by

Copyright:

Available Formats

SDG AMBITION B E N C H M A R K R E F E R E N C E C O N S U LTAT I O N D R A F T

Benchmark Information BUSINESS IMPACT ON GENDER

Further, a growing body of evidence supports the link between greater

stronger worker relations and reduced incidence of fraud.3

adoption of inclusive workplace policies and performance reward

Illustrative Industry Impact

COMPANIES TAKING ACTION

UNILEVER ACCENTURE EAST AFRICAN

Assessing Against the Benchmark PRELIMINARY ACTIONS

Companies that strive towards gender balance report higher

INTEGRATION COMPLEXITY* C-SUITE OWNERSHIP

Chief Human Resources Officer

SDG AMBITION APPROACH

NEW GOAL IN LINE WITH BENCHMARK’S LEVEL OF AMBITION

WORKFORCE EQUALIZATION RETENTION & PROGRESSION RECRUITMENT

Implement policies that address

Eliminate gender pay gap Increase in recruitment balance

INTEGRATING AND VISUALIZING CHALLENGING BIASES IN TALENT TARGETING RECRUITMENT

HOLISTIC COMPENSATION GAP MANAGEMENT & STRUCTURE ACTIVITIES FOR BALANCE

KDD1 KDD2 KDD3

BUSINESS SYSTEMS DESIGN

view of employee increase pipeline

the business? TECHNOLOGY

1 Womens Empowerment Principles: Economic Forum, 2021.

work patterns and parental leave, and alienating work- 6 Ibid.

NET-POSITIVE WATER IMPACT

Benchmark Information BUSINESS IMPACT ON WATER

Assessing Against the Benchmark 3x We are losing wetlands 3x faster than

Performance on the benchmark — sustainable withdrawals and

N E T- P O S I T I V E WAT E R I M PACT I N WAT E R - ST R ES S E D BA S I N S

COMPANIES TAKING ACTION

NOVARTIS LEVI STRAUSS & CO INTEL

Business Value PRELIMINARY ACTIONS

Companies can reduce costs by conducting water-risk Adopt standardized measurements

CEO Water Mandate

N E T- P O S I T I V E WAT E R I M PACT I N WAT E R - ST R ES S E D BA S I N S

INTEGRATION COMPLEXITY* C-SUITE OWNERSHIP

Understanding Integration Journey towards Integration

Optimization of water-efficiency and

N E T- P O S I T I V E WAT E R I M PACT I N WAT E R - ST R ES S E D BA S I N S

SDG AMBITION APPROACH

NEW GOAL IN LINE WITH BENCHMARK’S LEVEL OF AMBITION

WATER QUANTITY WATER QUALITY

Total water consumption Water treatment rate Clean water access

in stressed regions; Water recycling rate treatment

MANUFACTURING PROCUREMENT LOGISTICS, WASTE SALES & ENVIRONMENT

KDD1 KDD2 KDD3 KDD4

N E T- P O S I T I V E WAT E R I M PACT I N WAT E R - ST R ES S E D BA S I N S

BUSINESS SYSTEMS DESIGN

integrated into PEOPLE service providers PEOPLE

water management PROCESS

How might you facili- How might you build

supplier water PROCESS opportunities? PROCESS

N E T- P O S I T I V E WAT E R I M PACT I N WAT E R - ST R ES S E D BA S I N S

100% OF EMPLOYEES ACROSS THE

Benchmark Information BUSINESS IMPACT

of their contractual arrangements, have the income to support their needs

The scope of this ambition comprises employees and contractors in direct

COMPANIES TAKING ACTION

INDITEX an independent organization that provides