Portfolio Sustainability Assessments identify areas of a portfolio that have the highest impact by combining life cycle analyses with sustainability-related risks and opportunities from the market. Companies are able to leverage the results of Portfolio Sustainability Assessment in multiple ways:
The chemicals sector is frequently recognized as an industry where companies have broadly implemented Portfolio Sustainability Assessment methodologies. Solvay, Clariant, and DSM are some of the most well-known examples in this field. These companies use the assessments to steer their decision-making on product portfolios to become more sustainable and innovation decisions are in part based on the outcomes of the PSAs. Ranking the stars of the portfolio provides companies with insights on which products are the sustainability top-performers, which should be eliminated or refused, and which offer the most potential for sustainable innovation. Solvay, for example, uses the outcomes of PSAs to help the business grow its portfolio by leveraging on opportunities and turning challenges into solutions, looking at both the sustainability performance and signals from the market.
Other industries have not jumped upon the PSA-wagon yet. This is surprising, given the fact that the tool is not industry-specific and could be applied in other impactful industries as well. To improve quality and consistency among PSA approaches, the World Business Council for Sustainable Development (WBCSD) published a common framework for Portfolio Sustainability Assessments.
The main benefits of implementing a company-specific approach to sustainable portfolio assessment along the lines of the WBCSD Framework include:
Is your company looking to develop an approach to steer product portfolios towards improved sustainability performance? Get in touch with Jan van der Kaaij at +31 6 28 02 18 80 or firstname.lastname@example.org to learn how you can develop a credible and robust approach that is based on the proven framework by WBCSD.
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