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	<title>Comments on: Analytics and Sustainability, Part II</title>
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	<link>http://iianalytics.com/2009/09/analytics-and-sustainability-part-ii/</link>
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		<title>By: Eric McNulty</title>
		<link>http://iianalytics.com/2009/09/analytics-and-sustainability-part-ii/comment-page-1/#comment-432</link>
		<dc:creator>Eric McNulty</dc:creator>
		<pubDate>Mon, 01 Mar 2010 18:23:16 +0000</pubDate>
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		<description>Nicholas Eisenberger also took on this topic over on the HBR blog: http://blogs.hbr.org/cs/2009/10/the_right_green_metrics.html. His thoughts are interesting.</description>
		<content:encoded><![CDATA[<p>Nicholas Eisenberger also took on this topic over on the HBR blog: <a href="http://blogs.hbr.org/cs/2009/10/the_right_green_metrics.html" rel="nofollow">http://blogs.hbr.org/cs/2009/10/the_right_green_metrics.html</a>. His thoughts are interesting.</p>
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		<title>By: Kathrin</title>
		<link>http://iianalytics.com/2009/09/analytics-and-sustainability-part-ii/comment-page-1/#comment-164</link>
		<dc:creator>Kathrin</dc:creator>
		<pubDate>Sun, 04 Oct 2009 14:01:01 +0000</pubDate>
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		<description>Eric,

You raise a few interesting questions. A longitudinal study would be interesting. Will companies at the bottom lose motivation? Alternatively, could companies in the top half, in the phenomenon Robert Cialdini refers to as the &quot;magnetic middle&quot;, gravitate toward the aveage? Knowing the companies that were at the top of the list, I am confident that won&#039;t happen. Still, the only real way to understand the impact of the ratings themselves is to measure them over time, and to do so transparently. 

Note that transparency, as with systems, is more of a relative term than absolute. On the one hand, these rankings were certainly more transparent than usual in explaining the components of the ranking. On the other hand, the transparency isn&#039;t granular enough for me to directly trace my company&#039;s actions and results to the component scores. 

As Rupert points out, consistent metrics would make measuring a company&#039;s contribution to its own and the planet&#039;s sustainability would be a giant step forward. In the meantime, though, I&#039;d really like to see specifically how the data from the listed companies were &quot;normalized&quot;. 

And you&#039;re dead on with regard to impact - that is, after all, the whole point! 

Kathrin</description>
		<content:encoded><![CDATA[<p>Eric,</p>
<p>You raise a few interesting questions. A longitudinal study would be interesting. Will companies at the bottom lose motivation? Alternatively, could companies in the top half, in the phenomenon Robert Cialdini refers to as the &#8220;magnetic middle&#8221;, gravitate toward the aveage? Knowing the companies that were at the top of the list, I am confident that won&#8217;t happen. Still, the only real way to understand the impact of the ratings themselves is to measure them over time, and to do so transparently. </p>
<p>Note that transparency, as with systems, is more of a relative term than absolute. On the one hand, these rankings were certainly more transparent than usual in explaining the components of the ranking. On the other hand, the transparency isn&#8217;t granular enough for me to directly trace my company&#8217;s actions and results to the component scores. </p>
<p>As Rupert points out, consistent metrics would make measuring a company&#8217;s contribution to its own and the planet&#8217;s sustainability would be a giant step forward. In the meantime, though, I&#8217;d really like to see specifically how the data from the listed companies were &#8220;normalized&#8221;. </p>
<p>And you&#8217;re dead on with regard to impact &#8211; that is, after all, the whole point! </p>
<p>Kathrin</p>
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		<title>By: Rupert Davis, Head of Sustainability, MontaRosa</title>
		<link>http://iianalytics.com/2009/09/analytics-and-sustainability-part-ii/comment-page-1/#comment-161</link>
		<dc:creator>Rupert Davis, Head of Sustainability, MontaRosa</dc:creator>
		<pubDate>Fri, 25 Sep 2009 10:58:16 +0000</pubDate>
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		<description>That Newsweek is making such an effort speaks to the major cultural shift that has been happening over the last few years in the States. As you say the difficulty is each company has its own metrics, goals and performance tracking systems and these are hard to compare.  A measurement which simply doesn&#039;t happen yet(with the notable exception of Johnson and Johnson and a very few others), and it&#039;s a shame, is the actual internal rate of return on environmnetal investments. In other words measuring the earnings equivalents[cost savings] created over time against the cost of the sustainability investment - much as a VC or project financier would measure the return on a potential new investment. These are actually rather compelling from a business value perspective and make the case much more strongly. That&#039;s why some major private equity firms like KKR have been rolling out sustainability across their portfolio companies - they see an operating performance return which matches up to their benchmarks.</description>
		<content:encoded><![CDATA[<p>That Newsweek is making such an effort speaks to the major cultural shift that has been happening over the last few years in the States. As you say the difficulty is each company has its own metrics, goals and performance tracking systems and these are hard to compare.  A measurement which simply doesn&#8217;t happen yet(with the notable exception of Johnson and Johnson and a very few others), and it&#8217;s a shame, is the actual internal rate of return on environmnetal investments. In other words measuring the earnings equivalents[cost savings] created over time against the cost of the sustainability investment &#8211; much as a VC or project financier would measure the return on a potential new investment. These are actually rather compelling from a business value perspective and make the case much more strongly. That&#8217;s why some major private equity firms like KKR have been rolling out sustainability across their portfolio companies &#8211; they see an operating performance return which matches up to their benchmarks.</p>
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