The importance of sustainability and regeneration

In today's rapidly evolving business landscape, project managers, sponsors and finance officers face an increasingly complex challenge: balancing traditional return on investment (ROI) metrics with broader sustainability goals. This holistic approach considers not only economic returns but also environmental impact, community well-being and human flourishing. Let's explore why this matters and how we can effectively incorporate sustainability into our project management practices.

Balancing multiple returns on investment

Traditionally, project success has been measured primarily through financial metrics. However, as we become more aware of our interconnected world, it's crucial to consider a more comprehensive set of returns:

1. Environmental ROI: how does the project impact natural resources, biodiversity and climate change?
2. Community ROI: what are the effects on local communities, social structures and cultural heritage?
3. Human Well-being ROI: how does the project influence the health, happiness and personal growth of individuals?
4. Economic ROI: what are the short, medium and long-term economic impacts on the local community, the nation and the world?

By considering all these factors, we can create projects that not only generate profits but also contribute positively to our world and future generations.

Projects as interventions in complex systems

Adding objectives for sustainability and regeneration to projects isn’t always easy. That said, it’s important. To understand the importance of sustainable project management, we need to recognise that every project is an intervention in a complex system. Complex systems are characterised by:

• Interconnectedness: changes in one area can have unexpected effects in others.
• Non-linearity: small actions can lead to disproportionately large outcomes, and vice versa.
• Emergence: new properties or behaviours can arise from the interactions within the system.

When we implement a project, we're not just affecting the immediate target area. We're potentially triggering a cascade of changes throughout the system. For example, a construction project might not only provide new housing but also impact local traffic patterns, community dynamics and ecosystem health.

As project professionals, we need to anticipate and plan for these knock-on effects. This requires:

1. Systems thinking: looking at the bigger picture and understanding interconnections.
2. Scenario planning: considering multiple possible outcomes and preparing accordingly.
3. Stakeholder engagement: involving and listening to diverse voices affected by the project.

Tools and frameworks for sustainable project management

Integrating sustainability into project management doesn't have to be daunting. Several tools and frameworks can help:

1. Sustainability Impact Assessment (SIA): this tool helps evaluate the potential environmental, social and economic impacts of a project before implementation.
2. Life Cycle Assessment (LCA): LCA examines the environmental impacts of a product or service throughout its entire life cycle, from raw material extraction to disposal.
3. UN Sustainable Development Goals (SDGs): aligning projects with relevant SDGs can provide a framework for sustainable development and help communicate the project's broader value.
4. Green Project Management (GPM) P5 Standard: this standard integrates sustainability and regenerative practices into project management processes.
5. Circular Economy Principles: applying circular economy concepts can help design projects that minimise waste and maximise resource efficiency.
6. PRiSM (Projects integrating Sustainable Methods): a methodology specifically designed to integrate sustainability into project management practices.

By incorporating these tools and frameworks into our project management practices, we can create more sustainable, regenerative projects that balance multiple forms of ROI.

In conclusion, as project professionals, we have the power and responsibility to shape a more sustainable future. By considering the broader impacts of our projects, thinking systemically and utilising appropriate tools, we can deliver value that goes far beyond financial returns. This approach not only benefits our organisations but also contributes to the well-being of our communities, our environment and future generations.

 

You may also be interested in:

• Understanding sustainability and regeneration in project management: a call to action
• What is sustainability in project management?
• APM Sustainability Interest Network