What is a sustainability management system?

Management systems help companies to structure and implement innovative practices within their organization.
There are many areas of application, such as safety, quality and now sustainability.

Like a roadmap, the management system guides you through the planning, implementation, evaluation and improvement of your actions covering all aspects of CSR fields, and then communicates your maturity with complete transparency.

A well-constructed sustainability management system enables you to control your CSR risks and financial opportunities, as well as your positive and negative environmental, social, ethical and responsible purchasing impacts.
In this article, we will go into detail on the following points: 

• What is a management system?
• Theory: the Deming wheel or Plan Do Check Act (PDCA)
• What is a management system applied to sustainability?
• The components of a sustainability management system
• A concrete example

Enjoy your reading!

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What is a management system?

A management system is a set of processes, practices and rules that a company puts in place to achieve its objectives. 

It helps coordinate company activities, ensure product or service quality, improve efficiency and manage resources!

A management system can be applied to a number of specific issues. Here are a few examples: 

• Quality: Ensuring that products or services meet customer requirements and quality standards (e.g. ISO 9001).

• The environment: Reducing the environmental impact of the company's activities (e.g. ISO 14001).
• Information security: Protect sensitive data against threats and ensure confidentiality (e.g. ISO/IEC 27001).

Each type of management system is designed to improve specific aspects of the company's management and operations.

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Theory: the Deming wheel or PDCA

To set up a management system, we recommend using the Deming wheel, also known as Plan Do Check Act (PDCA).
What exactly are we talking about? 

It's a simple method for innovating, solving problems and improving methodically in 4 major steps.

To help you understand, we've created a guide to using Plan Do Check Act, using the example of carbon management.

Plan - P

In this first step, we identify a problem or an opportunity for improvement. 

The team analyzes the current situation, collects data and sets precise objectives. 

Then it draws up an action plan to solve the problem or seize an opportunity. 

Before getting started, it's important to clearly define the resources required, the deadlines and everyone's responsibilities.

To sum up, the two key stages are : 

• Defining objectives: defining objectives (quantitative or qualitative) for a given period. Example: In 2030, we aim to halve the number of accidents in the workplace compared with 2020. To set the right objectives, we recommend you use the SMART method: Specific, Measurable, Attainable, Realistic and Time-bound.
• Defining policies: formalizing policies to communicate commitments and objectives to stakeholders. These policies are the foundations of your management system, helping you to set a clear course and communicate it both internally and externally.

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C - D

During this phase, planned actions are carried out, ensuring that they can be evaluated, and real-time data is collected to verify their effectiveness.

Key milestones : 

• Preventing risks,some text
  • Implement actions, manage action plan to ensure risk prevention measures are implemented,
  • Create training programs and train your teams,

• Formalize procedures explaining how specific actions are to be carried out,‍
• Mitigating risks, boosting opportunities and reinforcing positive impacts
• Implement actions,‍
• Formalize these implemented actions, keeping all evidence for the Check part of the PDCA,
• Implement controls by formalizing all procedures.

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Check - C

After implementation, the results obtained are evaluated by comparing them with the objectives set. Deviations between expected and actual results are identified, and the causes of these deviations are determined.

The key stages are as follows: 

• Monitor KPIs: regularly monitor relevant KPIs to track progress and see if targets are being met,‍
• Result" KPIs: indicators measuring the real impact of the action on the company, e.g.: X health training courses have been set up.‍
• Means" KPIs: indicators measuring the deployment of initiatives in place, e.g. X% of employees attended a health training course.‍
• Visualizing KPIs: making and presenting readable dashboards showing progress over time,‍
• External impact assessment: monitor the external assessment of the company's impact.

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Act - A

Based on the results of the Check phase, action is taken. 

If the changes have been effective, they are standardized and applied on a larger scale.

If the results are not satisfactory, we adjust the plan or look for new solutions.

The cycle then returns to the planning stage (Plan) to continue improving processes.

The final step is to draw up easy-to-share reports to present the status of the various initiatives and key indicators, and facilitate communication during quarterly/annual reviews.

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PDCA is symbolized by a wheel that is always in motion, moving forward without turning back.

This philosophy applies to the corporate world, with the aim of moving forward from iteration to iteration, and always striving for continuous improvement on sustainability issues.

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A management system applied to sustainability 

A sustainability management system helps companies to manage their environmental, social, ethical and purchasing impacts.

Companies will set sustainability objectives, establish policies and procedures to achieve them, and measure their progress.

The sustainability management system includes continuous assessment to adjust actions and improve.

For greater effectiveness, the company must also engage its stakeholders to promote sustainable and transparent practices.

There are many advantages to implementing a sustainability management system:

• Help define sustainability objectives to improve operational efficiency.
• Ensuring regulatory compliance: an increasing number of laws govern CSR issues for companies.
• Improve brand image: a responsible company is perceived positively by customers, partners and investors, which can boost trust and loyalty.
• Attracting and retaining talent: employees are often more motivated and committed in a company that takes its social and environmental responsibilities seriously.
• Reducing risks: by adopting responsible practices, the company minimizes the risks associated with controversies, regulations and environmental or social crises.
• Efficiency and innovation: CSR practices encourage resource efficiency and innovation, for example by optimizing energy use or developing more sustainable products.
• Facilitate communication and transparency with quality information.
• Centralize all data to make them more accessible and readable.
• Improves durability performance over time.

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What are the components of a sustainability management system?

To establish a good CSR management system, we share with you the essential components.

Dual materiality matrix

The materiality matrix is a tool that helps to identify and assess the key issues for both the company (internal materiality) and its stakeholders (external materiality).

This enables us to understand the company's significant impact on society and the environment, and vice versa.

To build your materiality matrix, you need to define your company's material challenges with the help of your stakeholders.

Well-defined governance

It is important to define a clear structure for directing and overseeing sustainability initiatives. 

Good governance defines roles, responsibilities and decision-making processes to ensure that sustainability objectives are properly integrated and monitored.

The pillars of good governance : 

• A project manager is usually the CSR manager. He or she sets the pace and monitors the project over time. 
• Referents: they will be the project manager's points of contact for sharing data and realities in the field. These are usually the purchasing manager, the human resources manager, the ethics manager, the health and safety manager, etc.
• Having a management team involved in the CSR approach helps projects move forward more quickly and promotes CSR commitment.
• Clearly defined sustainability budgets.

Alignment with the regulations and methodologies of labels, audits and certifications

Before embarking on your CSR initiatives, we advise you to take a close look at the regulatory framework to which you are subject, and to consider the labels, audits and certifications that could be of interest to you.

They'll give you a clear framework for getting started. 

In any case, you can use the CSRD as a model, as it is often the basis for other assessments, labels, etc. 

These external standards help prove the company's commitment and rigor.

Drawing on best practices and recommendations

You're not alone in your commitment to sustainability! Take a look at what companies in your sector are doing to save time and adopt methods and practices recognized as effective by others. 

Drawing inspiration from best practices helps to develop strategies and actions based on experience and proven recommendations.

Defining the right objectives

To be effective in your CSR initiatives, you need to define the objectives you are going to implement. This is one of the keys to a successful strategy! 

Objectives should be SMART, Specific, Measurable, Attainable, Realistic, Timely, for example: 

Aim to reduce GHG emissions from Scopes 1 and 2 by 90% by 2030, based on 2019, in line with the Science Based Targets (SBTi) initiative.

An action plan and policies

A detailed action plan sets out the steps to be taken to achieve sustainability objectives, while policies define the principles and rules to be followed. Together, they guide concrete actions and behaviors within the company.

Proof system for existing projects 

This involves setting up a database to collect and store evidence of actions and results, as well as describing their implementation and effectiveness. For example, a procedure document on chemical handling provides evidence of internal mechanisms to mitigate employee health and safety risks. Or an environmental action plan document can describe past, current and future actions on environmental issues. 

Track performance indicators (KPIs) for improvement

KPIs (Key Performance Indicators) are specific measures used to assess a company's sustainability performance. 

Tracking these indicators enables us to quantify progress and identify areas for improvement.

For example: if your objective is to reduce the annual absenteeism rate by 10%, one of your KPIs to monitor could be the number of employees absent. 

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Centralize data through a sustainability management system

To build a sustainable sustainability management system, data must be centralized and made easily accessible.

On the Beavr platform, our tool allows you to visualize each component of your CSR strategy: 

• Politicians,
• Measurements,
• Reporting,
• Task owners,
• Data completion monitoring,
• Etc.

A good CSR management system provides a clear overview of all CSR initiatives, enabling us to identify areas for improvement and communicate performance to our stakeholders.

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If you need help building your CSR management system, Beavr can support and guide you every step of the way.

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Conclusion

Building a sustainability management system is essential to mastering sustainability risks and opportunities.

This management system guides companies in planning, implementing, evaluating and improving all CSR actions deployed. 

The methodology we recommend you use to implement it is the Deming Wheel or Plan Do Check Act. This method provides a clear framework for continuous improvement.

The major components of a good sustainability management system are: a materiality matrix, well-defined governance, clear objectives, an action plan, policies, a system of evidence and, of course, performance monitoring.

As you can see, building a sustainability management system requires a great deal of time and investment. To save time and increase efficiency, we recommend centralizing all data and project follow-up.

Beavr can guide you through this process and help you meet all your stakeholders' CSR expectations.