The New Metrics of Sustainable Business Conference Measures Up

How would you recognize a truly sustainable business if you saw one?

That was one of the more ambitious questions at the New Metrics of Sustainable Business Conference, hosted by Sustainable Brands in Philadelphia. Luckily, each of some 30 sessions during the conference Tuesday and Wednesday offered pieces of the complex answer.

One tactic of the sustainability movement is to persuade, cajole or force businesses to recognize the value of measuring sustainability by showing how it impacts their bottom line. One of the chinks in the armor is corporate risk management.

With more than 2.6 million credit ratings in play at one time, these ratings have an enormous effect on shifts in market value. As long- and short-term environmental risk management grows in importance in credit ratings, the conversation will necessarily change.

Before that happens wholesale, there are still many new metrics arguments to be made that help CEOs, CFOs and CMOs see intrinsic and extrinsic value in more sustainable business practices. The refreshing aspect of the conference sessions was that hard facts and data were behind every attempt to quantify sustainability gains — and quantify the value of measuring them — in business activities. The frustrating aspect was that many of the proven, reliable measures and initiatives in place today are still slow to transition to the mainstream.

The University of Pennsylvania in Philadelphia was a fitting venue for the third year of this Sustainable Brands forum, given the school’s motto, “Laws without morals are in vain,” and the fact that the school is my alma mater. Jeffrey Smith, partner at Crowell & Moring law firm and Advisory Council member of SASB (Sustainability Accounting Standards Board), added another layer by quoting Penn’s founder, Benjamin Franklin: “The great part of the miseries of mankind are brought upon them by false estimates they have made of the value of things.”

Read the rest of my article on Greenbiz.com here.

Check out the conference presentations here.

Also, think about reading this book: How to Measure Anything, subtitled “Finding the Value of Intangibles in Business.”

Finally, a favorite quote of mine from Galileo…

“Measure what is measurable, make measurable what is not so.”

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