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| Primary purpose Summary Potential benefits Who can use the tool? What resources are needed? Development, ownership and support Social enterprise examples Footnotes SIGMA (Sustainability – Integrated Guidelines for Management) Guidelines The SIGMA Guidelines are an overarching integrated system developed to manage the social, environmental and wider economic impacts of an organisation’s activities. Their key aim is to improve an organisation’s performance. This is achieved not by prescribing levels of performance in the Guidelines themselves, but by laying out how organisations should set performance targets that are consistent with the operating principles they have adopted; measure their performance against these targets over time; and report against them – taking action to remedy any situations where the level or speed of performance improvement is insufficient to achieve the targets that have been set. They bring together a wide range of approaches including social reporting, planning for sustainability [1], stakeholder engagement and a version of the Balanced Scorecard (the sustainability scorecard) to embed sustainability into the organisation’s activities. The Guidelines take the form of a free, downloadable report. The SIGMA Guidelines are not intended explicitly for certification purposes. SIGMA believes assurance is an important component of credibility and encourages organisations to communicate and report the results of evaluations of their performance to stakeholders. A table in the Guidelines provides methods and information for providing assurance. The SIGMA Guidelines are a series of inter-linking and supporting components:
The SIGMA Guiding Principles consist of two core elements:
The Guidelines suggest that a sustainable organisation will maintain and, where possible, enhance these stocks of capital assets, rather than deplete or degrade them.
The Guidelines Report takes each of the five different types of capital, and tells the reader what it means, why it is important to an organisation and offers roughly ten principles through which an organisation can enhance that capital. For example, for ‘natural capital’ an organisation can choose to ‘prevent the physical degradation of nature and protect and enhance biodiversity and eco-system functions’. It is up to individual organisations to select the guiding principles that best fit their values, vision, mission, strategies and operations. These guiding principles should then be communicated to the organisation’s stakeholders and act as a focus for improving their sustainability performance [2]. If an organisation has already adopted or signed up to external codes or standards, it can choose to use the SIGMA Guiding Principles to compare with the coverage, depth and breadth of its existing approaches. [3] consists of four systematic phases, broken down into detailed sub-phases to allow an organisation to develop, plan, deliver, monitor and report on its sustainable development strategy and performance. The four phases are:
The SIGMA Guidelines show how to use the Management Framework through a series of tables. Each table gives information on steps in each of the four phases. They all provide:
The SIGMA Toolkit provides a range of practical solutions to support the SIGMA Management Framework and to address specific challenges. It includes:
Potential limitations
Who can use the SIGMA Project tools? Any organisation can use all or part of the Guidelines, although mainly larger companies have used it so far. The SIGMA Management Framework and the SIGMA Toolkit, focusing on practical details, are particularly relevant to managers and personnel who are responsible for directing, planning or implementing sustainable approaches in their organisations. Leadership The developers of SIGMA suggest that organisations may choose to establish a dedicated team for implementation though it may be possible for one person to lead on the work in smaller organisations. It may be used in whole or in part to integrate existing management systems, to establish a stand-alone management system, or as guidance to broaden existing management practice. Organisations may enter the cycle at different points and work through the phases at different speeds according to their particular circumstances and existing systems. For example, some organisations may feel they have a well-developed management system in place but need to clarify or revisit their leadership and vision. For others, embedding sustainability into the planning and delivery of their work may be more important. Proficiencies or skills These will vary depending on how the organisation uses the tool, but it is recommended for the team or individuals to have had experience with social research, such as interviews, questionnaires and reporting. Experience of other approaches included in the SIGMA Toolkit such as the Balanced Scorecard or AA1000AS will help with the process. Staff time Sustainability is focused on long-term outcomes and the Guidelines work towards a continuous long-term basis. Significant time will be required to compile, analyse and write up information and implement action. Courses, support, and information The SIGMA Project website contains information on support and practical experience of other organisations and corporations who have used the Guidelines [4]. Training is available to implement the SIGMA Guidelines. The British Standards Institution runs regular programmes [5]. Consultants may help with stakeholder engagement and assurance. Development, ownership and support The SIGMA Project was launched in 1999 with the support of the UK Department of Trade and Industry. It is a partnership between the British Standards Institution, Forum for the Future (a sustainability think-tank), and AccountAbility (an international professional body for accountability). The SIGMA Project aims to provide clear, practical advice to organisations to help them make a meaningful contribution to sustainable development [6]. At the heart of the SIGMA Project is the development of the SIGMA Guidelines. The Guidelines are free to download from the Sigma Project website.
Examples from other sectors:
1 For SIGMA, sustainability may best be defined as the “capacity for continuance into the long-term future”. Anything that can go on being done indefinitely is sustainable; anything that cannot is unsustainable. 2 SIGMA identifies a ‘business case’ for sustainable development: “A body of evidence and arguments highlighting how improved sustainability performance can maximise opportunities and minimise potential risks for an organisation. The SIGMA Guidelines focus on making a business case within a specific organisation.” 3 The SIGMA brochure gives a definition of a management system, as “a means by which organisations can formalise, document and improve their management practices. A management system usually incorporates consideration or development of organisational policies, programmes, procedures, structure and resourcing; staff roles, responsibilities and training programmes; operational controls; planning (strategic and operational); internal audits, management reviews, etc. The management system is intended to facilitate the delivery of continual improvement in overall business performance.” 5 www.bsi-global.com for more details. 6 The SIGMA brochure lists a variety of perspectives on ‘sustainable development’ including: The UK Government’s definition in the Sustainable Development Strategy, published in May 1999, that defines sustainable development in terms of four objectives: social progress which recognises the needs of everyone; effective protection of the environment; prudent use of natural resources; and maintenance of high and stable levels of economic growth and employment. |
