Accounting for Environmentally Driven Corporate Success

Prof. Dr. Stefan SchalteggerCentre for Sustainability Management (CSM)

Leuphana University of Lueneburgwww.uni-lueneburg.de/csm

Environmental Management Leadership SymposiumUniversità BocconiMilano, 9 June 2009

Core question is: What kind of information do environmental managers need to create business cases for sustainability?

Information as a Key for Creating Corporate Sustainability.

Schaltegger

InformationInformation

SPECIFICSPECIFIC

STANDARDSTANDARD

collectcollect indicatorsindicators analysisanalysis

Env./Sustainability AccountingEnv./Sustainability Accounting

REPORTINGREPORTINGMGMT SystemMGMT System

GRIGRISustainability

reportingSustainability

reportingIndicatorsIndicatorsAccounting System

Accounting System

Data collection

Data collection

Inside-OutInside-Out

Outside-InOutside-In

Advantages Disadvantages

IO Specific company information

Create learning process

Not comparable

Time

OI Comparable

Credible

Signalling Create reputation mgm

It creates urgency

Standardization

IO + OI = INTEGRATIONIO + OI = INTEGRATION

Create Business Case FOR SustainabilityCreate Business Case FOR Sustainability

How much is enough?

Not how MUCH but HOW

How much is enough?

Not how MUCH but HOW

Structuring Sustainability Information Accordingto the Drivers of the Business Case- Information Requirements II.

Main drivers (increasing or decreasing economic success):

Costs

Risk

Sales, price and contribution margin

Reputation, intangible values and brand value

Innovation

Other factors like employee confidence influencingthe above factors

Schaltegger

THE END,

Thank you

Business Case for Sustainability- Information Requirements II.

Voluntary socialand environmentalactivities

Economicsuccess

(Similar to Schaltegger 1988; Schaltegger & Synnestvedt 2002)

Schaltegger

Societal and Technological Risiks- Vattenfall AG.

Loss of Customers at Vattenfall in Germany (2007/8):

250.000 Customers less in 12 months after a (small) accidentwith a nuclear power station (power plant Krümmel)

Exclusively non-alcoholic organic soft drinks

Founded: 2002Employees: 105Development of Sales:2002/3: 0.2 mio. bottles p.a.2004: 0.7 mio. bottles p.a.2005: 20 mio. bottles p.a.2006: 70 mio. bottles p.a.2007: 200 mio. bottles p.a.2008: 450 mio. bottles p.a.

Increase of Sales- Bionade GmbH.

Quelle:http://www.bionade.com/bionade.php/10_de/20_produkt?usid=4795d5aaaaba04795d5aaab74c

Outside-inInside-Out

Inside-Out and Outside-In- Information Requirements V.

Characteristics and perspectives

of sustainability (future oriented, long-term, 3 pillars,

etc.)

Accounting andreporting tools

IndicatorsAccounting and

reporting approaches to create information for

indicators

Reporting guidelines

Stakeholder participationand dialogue

Schaltegger (Similar to Schaltegger & Wagner 2006)

Reporting

Goals and indicators