a new model © sustainable management forum kazutomi mita president rating institute for sustainable...

A New ModelA New Model

© Sustainable Management Forum

Kazutomi MitaKazutomi Mita

PresidentPresidentRating Institute for Sustainable ManagementRating Institute for Sustainable Management

Tokyo, JapanTokyo, Japan

to Evaluate theto Evaluate the

Eco-BusinessEco-Business　　　　 MarketMarket

The “Sustainable Management Forum”

EstablishedEstablished Oct. 2000 in JapanOct. 2000 in Japan

PurposePurpose To provide a platform for research specialists, To provide a platform for research specialists, business executives and citizens to study theories business executives and citizens to study theories and their verification for establishing and their verification for establishing

“Management for Sustainability”“Management for Sustainability”

DirectorsDirectors　　 Chairman - Dr. Junichi NishizawaChairman - Dr. Junichi Nishizawa

(Former President of Tohoku University)(Former President of Tohoku University)

　　 Deputy Chairman - Dr. Kazutomi MitaDeputy Chairman - Dr. Kazutomi Mita　　 Vice Chairman – Professor Ryoichi YamamotoVice Chairman – Professor Ryoichi Yamamoto

MembershipMembership““Corporate Members” Corporate Members” ““Individual Members”Individual Members”


Activities of SMF

Research and InvestigationResearch and Investigation

Organizing Research Reports, Meetings and Organizing Research Reports, Meetings and SymposiumsSymposiums

Publishing Work Publishing Work - Magazines - Magazines “Sustainable Management” “Sustainable Management” - SMF Books- SMF Books “Green Forum”“Green Forum”

Transmitting Information to and from Abroad.Transmitting Information to and from Abroad.


Research and ProposalsResearch and Proposals

To establish To establish New Social Systems where where three Pillars ofthree Pillars of Profit SeekingProfit Seeking, , Environmental Protection andEnvironmental Protection and EthicsEthics can coexist. can coexist.

Create Create Incentives toward toward

Environment-protective Industrial Activities and Management.Environment-protective Industrial Activities and Management.

Devise Devise Strategies and Business Models for a for a New Global Environment.New Global Environment.

Drive Drive Collaboration among Universities, Enterprises, Citizens and Authorities in order to realize in order to realize Sustainable SocietySustainable Society..

Research Research Environmental Risks around Business Managementand Propose and Propose Solutions for Avoiding Risks.

Measure and Evaluate Theories of of Global Environmental RisksGlobal Environmental Risks. .

Activities of SMF


Oct. 2000

May 2001

Oct. 2001

Nov. 2001

Feb. 2002

March 2002

June 2002

Established SMF

Held the first Annual Meeting (Green Festival)

Held workshop (Announced the results of trial rating)

Established SMRI (Rating Institute for Sustainable Management)

Acquired Non-Profit Organization status

Sent Research Groups to USA and EU

Began the 1st Rating Investigation (87 leading Companies)© Sustainable Management Forum

Brief History

General Meeting

Board of Directors

Steering Committee

RatingCommittee

ResearchCommittee

StrategyCommittee

PlanningCommittee

Rating Institute for Sustainable Management

(SMRI)

General affairsCommittee


Organization ofOrganization of Sustainable Management Forum of JapanSustainable Management Forum of Japan

SMRI = Rating Institute for Sustainable ManagementSMRI = Rating Institute for Sustainable Management

AuditorBoard of Directors

Advisorycommittee

General Affairs &Accounting Division

DeterminationCommittee

Appealcommittee

SMRI ResearchCenter

Rating AuthorizationDivision

PublicationDivision

Counselor’s Desk forEnvironmental Affairs


0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

End of1996

End of1998

End of2000

End of2001

End ofMay 2002

1,395

5,075

8,0129,323

140

Growth of ISO 14001 Registered Organizations

Presentation : Prepared by Ministry of the Environment based on the data of Japanese Standards association and ISOWORLD

ISO 14001 Registration


20002000 Automobile makerAutomobile maker Cover up (recalls) Cover up (recalls) 2001 2001 University HospitalUniversity Hospital Cover up (operation mistake)Cover up (operation mistake)2002 2002 Food company Food company (A)(A) BSE (camouflage)BSE (camouflage)

Bank System troublesBank System troublesAmusement park Amusement park Illegal use of gun powder, etc.Illegal use of gun powder, etc.Food company Food company (B)(B) BSE (camouflage)BSE (camouflage)Trading company Trading company Cover up (business obstructing)Cover up (business obstructing)Electric Power co.Electric Power co. Cover up (Defective nuclearCover up (Defective nuclear

equipment)equipment)　　　　　　　　 Financial CompanyFinancial Company Community with Illegal PowerCommunity with Illegal Power


Recent Corporate Scandals

Also Corporate Scandals in the United States:2002 Energy Company Illegal Accounting 2002 Information Technology Company Illegal Accounting

　　 To promote positive attitudes toward To promote positive attitudes toward Environmental Issues by Corporate sector. Environmental Issues by Corporate sector.

　　 To appreciate Fair and Honest Enterprises.To appreciate Fair and Honest Enterprises.

　　 To submit a Common Standard to various To submit a Common Standard to various stakeholders.stakeholders.

　　 To encourage establishing New Business ModelsTo encourage establishing New Business Models to cope with Economic Difficulty. to cope with Economic Difficulty.


New Rating System for Sustainable Management

Corporations to be rated First Year include 87 leadinCorporations to be rated First Year include 87 leading companies in Japan, such as Toyota, Nissan, Suntg companies in Japan, such as Toyota, Nissan, Suntory, Hitachi, Canon, Mitsubishi, etc.ory, Hitachi, Canon, Mitsubishi, etc.

Rating Staff : 100 members (volunteer)Rating Staff : 100 members (volunteer)

This Rating Process is sponsored by the Japan ScienThis Rating Process is sponsored by the Japan Science and Technology Corporation, by the Japan Fund fce and Technology Corporation, by the Japan Fund for Global Environment.or Global Environment.


Rating Scope

Questionnaire Has 60 “Leaves” (20x3) Questionnaire Has 60 “Leaves” (20x3)

(1) 20 Items (1) 20 Items

Regarding Corporate Philosophy (Economy)Regarding Corporate Philosophy (Economy) 4 Items4 Items

On Environmental Performance (Ecology)On Environmental Performance (Ecology) 11 Items11 Items

Surrounding Corporate EthicsSurrounding Corporate Ethics 5 Items5 Items

(2) Each Item Has 3 Domains(2) Each Item Has 3 Domains

StrategyStrategy

OrganizationOrganization

ResultsResults


Rating Method

観

転截

“KAN”

Co-Creation

応用哲学の認識論 Applied Philosophy

Obtaining Corporate Participation

-Overview-Holistic

- Distribute Responsibility

- Collaboration

“TEN” “SETSU”

-Change Position

-Evolve

Ref: Miyamoto Musashi

ＳｔｒａｔｅｇｙＯｒｇａｎｉｚａｔｉｏｎＲｅｓｕｌｔｓＡｖｅｒａｇｅ3 3 3 3.0 A Management philosophy2 1 3 2.0 B Corporate governance3 1 0 1.3 C Risk Management3 3 3 3.0 D Information disclosure & explanation accountability3 2 2 2.3 E Countermeasures to global warming1 2 2 1.7 F Recycling of resources3 3 3 3.0 G Control of hazardous chemicals3 2 3 2.7 H Air/ water/ soil pollution2 1 0 1.0 I Location & Establishment of social assets3 3 2 2.7 J Green procurement3 2 2 2.3 K Waste management3 3 3 3.0 L Eco- desinig3 1 3 2.3 M Logistics3 2 1 2.0 N Environmental report & Environmental accounting3 3 3 3.0 O Resources/ energy environmental efficiency accounting3 3 2 2.7 P Improvement of corporate ethics3 3 3 3.0 Q Consideration for local community3 3 2 2.7 R Consideration for consumers3 3 3 3.0 S Occupational health and safety2 3 3 2.7 T Equal opportunity

Average 2.8 2.4 2.3 2.5

Evaluation on the Attitudeon Ethical and Social

Rsponsibilities

Evaluation on Contributionto Environmental

Protection

Evaluation onManagement Strength

Sustainability Rating Map

© Sustainable Management Forum, Mita Model

2002 Rating Tree Legend2002 Rating Tree Legend


Strategy

Organization

Performance

Excellent FairGood Bad Not Applicable

2002 Full Rating Tree Example2002 Full Rating Tree Example

A Management philosophy

C Risk Management

D Information disclosure & explanation accountability

E Countermeasures to global warming

F Recycling of resources

G Control of hazardous chemicals

B Corporate governance

H Air/water/soil pollution

I 　 Location & Establishment of social assets

J Green procurement K Waste

management

L Eco-desinig

M Logistics

N Environmental report & Environmental accounting

O Resources/energy environmental efficiency accounting

P Improvement of corporate ethics

Q Consideration for local community

R Consideration for consumers

S Occupational health and safety

T Equal opportunity

C: Risk Management

H: Air/water/soil pollution

S: Occupational health and safety


SMRI 　　　　　　　 Cooperating Companies

Process of Sustainability Rating

Cooperation Request for Sustainability Rating Return Environmental Report

and Any Other Related Documents

1.2.

Send Survey Sheet on Sustainability Rating

3.

Return Completed Survey Sheet

4.

(1) Check Completed Survey Sheet, Clarify Contents

(2) Assign Scores, Make Sustainable Rating Map

5.

Respond to Inquiries and Provide Additional Supporting Documents

6.

(1) Make Sustainable-Rating-Tree

(2) Process and Analyze Sustainable Rating Data

7.

To Receive and Accept Sustainable Rating Report

8.


　　 Tough to answer to wide range of questions from Tough to answer to wide range of questions from Philosophy, Performance to Ethics. Philosophy, Performance to Ethics.

　　 Difficult to have a common standard to fill the Difficult to have a common standard to fill the questionnaire.questionnaire.

　　 Welcome to get a good chance for Environmental Welcome to get a good chance for Environmental Communication with an academic forum.Communication with an academic forum.

　　 Nice to provide opportunities to promote people who are in Nice to provide opportunities to promote people who are in charge of environmental issues.charge of environmental issues.

　　 Happy to be appreciated for the efforts to realize better Happy to be appreciated for the efforts to realize better environment by sustainable management.environment by sustainable management.


Reactions of Companies Being Rated

Results of Trial Rating (October 2001)

GasRank A

ElectricityRank B

Material,

Chemical

Rank B

Manufacturing Rank C

ElectricityRank B

Material,

Chemical

Rank E© Sustainable Management Forum, Mita Model

The Way Forward

Government Leadership- Provide Guidelines- Establish Rules- Regulatory Audit and Compliance

Private Sector (Non-Government)- Research Institute (ex: IPCC)- Direct Action & Mass Movement (Seattle)

- Sustainability Dialogue (The “Third Way”)

Rating by Mita Model: the Catalyst