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Learn how sustainability in project management creates value in Dr. Minney's 'Implementing BS202002' on effective benefits management.
In this series expanding on the British standard BS 202002:2023 (Benefits Management for Portfolios, Programmes and Projects)1, we have covered benefits management across the portfolio, and the key stages of benefits management in programmes, projects, and other related work.
As we face climate and environmental crisis after crisis, and breakdowns in community cohesion and mental health, sustainability must be crucial in most of our major projects, and the benefits of sustainability need to be quantified and justified.
The project leadership – the project manager, benefits manager, and sponsor – has a big part to play. Project leadership can adjust the objectives, so they consider sustainability, adjust outcomes (changes) so they deliver sustainability, and adjust activities so they not only are sustainable of themselves, but also that they change the way workers and suppliers work towards more sustainable practices.
In all of this, the golden thread is governance. Governance ensures that policies are followed, and policies that include sustainable outcomes in developing the benefits, and sustainable processes in developing the delivery, will ensure sustainable projects.
Project managers in the project leadership team play a pivotal role in bridging the gap between the initial vision of a project and its successful completion. Their importance is magnified in projects aiming at sustainability goals, where they must balance technical requirements, stakeholder expectations, and environmental impacts. These professionals not only manage timelines and budgets but are also responsible for integrating sustainable practices into core project activities, and understanding the use case and opportunities to improve on that too. As the primary decision-makers and coordinators, project managers are in a unique position to drive sustainability initiatives across various industries 2.
Their responsibilities include:
Research has shown that project managers with a strong understanding of sustainability principles and practices are more likely to deliver projects that balance economic, environmental, and social factors 3. By prioritising sustainability, project managers can contribute to the long-term success of their organisations while positively impacting communities and the environment.
Sustainability is a multifaceted concept that encompasses the responsible management of economic, environmental, and social resources to ensure the well-being of current and future generations [4]. In the context of project management, sustainability involves:
Sustainable project management requires a holistic approach that considers the interconnectedness of these pillars (see Figure 1.) By integrating sustainability principles into project decision-making and processes, organisations can create value for all, whilst mitigating risks and ensuring the long-term viability of their projects2.
However, the picture is a little more nuanced5, and projects have a habit of delivering unexpected consequences.
When considering environmental sustainability in project management, it is important to distinguish between two key aspects:
While the former focuses on minimising the environmental impact of project activities, the latter ensures that the end product or service contributes to long-term environmental sustainability6.
#oneTools like life cycle assessments (LCA) and environmental impact assessments (EIA) can help project managers quantify the environmental footprint of their projects[7-9], and there are various KPIs that could be tracked both during project delivery to assess sustainable practices, and when planning and afterwards, to determine the long-term effects:
Translating environmental sustainability into financial terms can help project managers build a stronger business case for green initiatives10. For example, in the construction industry, investing in energy-efficient buildings can lead to significant long-term savings in operating costs, offsetting the initial construction impact11. Where direct financial benefits are not available, project managers should identify trustworthy financial equivalent values and communicate these as the return on investment, to secure support for sustainable practices.
Similar to environmental sustainability, social sustainability in project management involves two distinct aspects:
Social sustainability in project management involves assessing and managing the impact of projects on communities and stakeholders. Project managers should engage with local communities through representative groups and advocates, understand their needs and concerns, and work to create positive social outcomes both through the activities of project delivery, and as outcomes from the projects12. Some key social sustainability metrics include:
Project managers can use social impact assessments (SIA) to measure and report on the social sustainability of their projects13. These assessments help identify potential social risks and opportunities, allowing project managers to develop strategies to mitigate negative impacts and enhance positive ones.
Investing in social sustainability can also yield financial benefits for organisations. For example, in the healthcare sector, implementing new pathways of care that prioritise patient-centred approaches can lead to improved health outcomes, reduced readmission rates, and lower long-term healthcare costs14. By demonstrating the financial value of social sustainability, project managers can secure the necessary resources and support to drive positive change.
Effective governance is essential for integrating sustainability into project management practices. Organisations should establish clear policies, guidelines, and accountability measures to ensure that sustainability considerations are embedded throughout the project lifecycle (see Figure 2) Some key governance aspects include:
Project managers should work closely with their organisation's leadership and sustainability experts to ensure that governance structures support the effective implementation of sustainability practices2. By establishing strong governance frameworks, organisations can create a culture of sustainability that permeates all aspects of project management.
The United Nations Sustainable Development Goals (SDGs) provide a global framework for addressing the world's most pressing environmental, social, and economic challenges. The 17 SDGs (see Figure 3), adopted by UN member states in 2015, set ambitious targets to be achieved by 203015. Project managers can use the SDGs as a guide to align their projects with global sustainability priorities and contribute to the achievement of these goals.
The following table shows how the 17 SDGs align with the three key aspects of ESG:
Sustainable Development Goal | Environment | Social | Governance |
1. No Poverty | ✓ | ||
2. Zero Hunger | ✓ | ✓ | |
3. Good Health and Well-being | ✓ | ||
4. Quality Education | ✓ | ||
5. Gender Equality | ✓ | ✓ | |
6. Clean Water and Sanitation | ✓ | ✓ | |
7. Affordable and Clean Energy | ✓ | ||
8. Decent Work and Economic Growth | ✓ | ✓ | |
9. Industry, Innovation, and Infrastructure | ✓ | ✓ | ✓ |
10. Reduced Inequalities | ✓ | ✓ | |
11. Sustainable Cities and Communities | ✓ | ✓ | ✓ |
12. Responsible Consumption and Production | ✓ | ✓ | |
13. Climate Action | ✓ | ✓ | |
14. Life Below Water | ✓ | ||
15. Life on Land | ✓ | ||
16. Peace, Justice, and Strong Institutions | ✓ | ✓ | |
17. Partnerships for the Goals | ✓ |
By understanding how the SDGs relate to ESG factors, project managers can more effectively integrate sustainability into their projects and contribute to the global effort to create a more sustainable future.
Integrating sustainability into project management is no longer optional; it is a strategic imperative for organisations seeking to create long-term value and contribute to a more sustainable world. Project managers play a crucial role in driving sustainability by incorporating environmental, social, and governance considerations into project planning, execution, and monitoring processes.
By measuring and reporting on sustainability performance, translating sustainability impacts into financial terms, and establishing strong governance frameworks, project managers can build a compelling case for sustainable practices and secure the necessary support from stakeholders. Furthermore, aligning projects with the United Nations Sustainable Development Goals can help organisations contribute to global sustainability efforts and demonstrate their commitment to responsible business practices. As the world continues to face complex sustainability challenges, project managers have a unique opportunity to lead the way in creating a more sustainable future. By embracing sustainable project management practices, they can deliver projects that not only meet the needs of their organisations but also create positive, long-lasting impacts on communities and the environment.
Reference Literature
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