With apologies for cross-listing.
Please consider attending the following PDW at the 2009 AOM Conference:
What You Measure Is What Gets Done: The Importance of Developing Appropriate
Sustainability Metrics
Program Session #: 405 | Submission: 12144 | Sponsor(s): (AAT)
Scheduled: Sunday, Aug 9 2009 11:30AM - 1:00PM at Hyatt Regency Chicago in
Columbus KL
Moderator: Irene Henriques; York U.
Presenter: Sanjay Sharma; John Molson School of Business
Presenter: Michael Toffel; Harvard U.
Presenter: John Peloza; Simon Fraser U.
Presenter: Peter Kinder; KLD Research & Analytics Inc.
Organizer: Sujit Sur; Dalhousie U.
Organizer: Carol-Ann Tetrault Sirsly; Concordia U.
While sustainability metrics are essential to academics, consultants and
managers, there seems to be no consensus on which ones are meaningful. To
answer this question we need an understanding of sustainability to "who" for
"what" and "why" before we embark on the "how" and "when" we measure this
broad construct. The role of industry and context cannot be ignored, nor can
the practical difficulties of information sources and associated
validity/reliability issues. Sustainability metrics are the foundation for
monitoring progress, defining objectives and moving forward (or not!) on
sustainability agendas. This All Academy Symposium initiates a dialogue with
experienced researchers and the co-founder of KLD on whether we measure what
we truly value or whether we only value what we can readily measure. The GAS
(generalizability, accuracy, simplicity) problem facing sustainability
metrics underlines the compromises that must be made. Endorsing "Green
Management Matters" we propose that appropriate sustainability metrics are
the foundation to measuring what truly matters!
Format:
Dr. Irene Henriques will moderate this panel and will lead the panelists
through the following agenda:
1. Overview of the state of existing metrics research, commonly accepted
measures of the financial impacts from sustainability - John Peloza
2. Available metrics and KLD's rationale for using them - Peter Kinder
3. Narrower, highly quantitative perspective on sustainability metrics and
available data sources - Mike Toffel
4. Broader, qualitative perspective to measure holistically via
triangulation of different sources of data. Finding the balance to validity
and reliability - Sanjay Sharma
The four panelists will each have 15 minutes to elaborate on their chosen
theme, with 10 minutes earmarked for the moderator, and allowing 20 minutes
Q&A for the audience, for a total of 90 minutes for the panel.
Proposal Overview:
Inspired by the Green Management Matters theme and responding to
the paucity of sustainability metrics, we propose a dialogue on how
researchers may capture appropriate measures of firm and industry
sustainability and their effects on performance. As befits an All Academy
Symposium, this topic appeals to academics, consultants and managers coming
to grips with measuring what matters. While ESG (environmental, social
and governance) reporting is positioned to transform traditional financial
disclosure, it is still unclear as to which set of metrics provide insight
into sustainability performance. A discussion around measuring what is
truly important to assess or monitor sustainability, as opposed to what is
readily measurable, is fundamental to developing meaningful metrics.
As the focus on sustainability has evolved from purely resource
usage to a broader ecological footprint, we need to assess our measurement
tools to ensure our research captures the broader indicators of
sustainability. To do so, this panel will critically review the current
usage of metrics, examine the existing assessment criteria, identify the
shortcomings, and propose the way forward in the development of appropriate
metrics. John Peloza will share his review of extant literature and
highlight commonalities and gaps in commonly used financial metrics.
Thereafter, Peter Kinder, the co-founder of KLD rating - the most widely
used criteria presently, will provide insights into the rationale used for
selecting indicators, as well as the challenges faced in practically
assessing sustainability. Mike Toffel will then explore the very definition
of the construct, and share his research on what quantitative measures exist
and what needs further examination. In conclusion, Sanjay Sharma will
elaborate on the broader and holistic approaches, including qualitative
measures to fully examine the phenomenon, before the floor opens for
audience question and answer session with the panelists.
Thus this panel will discuss the data sources, existing
understanding and missing links in our present knowledge, and instigate a
dialogue on the appropriateness of sustainability metrics to respond to
multiple stakeholder perspectives, various industry/ cultural contexts and
dynamic change over time. We will thus capture quantitative and qualitative
approaches towards developing and using sustainability measures. Issues to
be discussed will include how to move beyond self-reports to ensure
credibility and reliability; what levels of analysis and data aggregation
are meaningful; how should off-sets be interpreted (i.e. carbon emission
trading); and how to assess validity or determine predictive validity.
We expect to have a highly interactive panel discussion and hope that you
can join us for the session.