ISA is a scientifically rigourous, quantitative, consistent and comprehensive approach to sustainability analysis. The ISA method builds on and adds depth to sustainability assessment methods that are based on audits of local activities. ISA can be used by companies, government and organisations of all sizes.
The ISA methodology extends the scope of the audit approach taken, for example, by the Global Reporting Initiative’s 2002 Sustainability Reporting Guidelines by using a hybrid analysis. Those who have used the ISA methodology make the following points about its relevance and impact.
Benchmarking
The method is consistent and repeatable and therefore provides real and durable benchmarks.
Risk management
It reveals current and potential environmental, social and economic risks because it calculates impacts over the full supply chain thus providing the true bottom line (see Information Sheet 2 for a diagram explaining full supply chain and Information Sheet 7 for the Triple Bottom Line). Rather than taking a shallow look at a large number of on-site indicators, ISA takes an in-depth look at important indicators and calculates their effect in TBL terms throughout the full supply chain, covering the entire economy, thereby removing the boundary problem (see Information Sheet 2 for a discussion of the boundary problem).
Strategic planning
ISA provides quantitative, reliable information necessary for strategic planning. It points to opportunities for improvements that would not otherwise be apparent. It identifies maximum leverage points for informed abatement action. It enables comparisons to be made between business units within an organization encouraging internal consistency.
Comparison with competitors
Consistent and meaningful comparisons are possible between entities using this methodology. Competitors not using this methodology cannot claim to be including all effects of their operations, negative and positive.
Captures the wider downstream effects
The methodology allows organisations to capture the positive downstream effects of their activities such as employment opportunities and economic benefits. These benefits are much wider than the immediate and local community effects and are usually hidden.
While the ISA methodology greatly enhances a conventional audit approach its application puts only minimal additional reporting burden on the organisation: ISA requires only the organisation’s financial account. Financial data is the input; ISA methodology provides the ‘engine’ that drives the sustainability calculations.
The output is a comprehensive sustainability report across a wide range of indicators that includes aggregate figures, but also useful, detailed breakdowns and rankings of indicators into supply chain contributions so that opportunities can be identified in areas of greatest impact. Finally, different indicators are calculated consistently and therefore can be compared on a meaningful basis (see spider diagram Information Sheet 6).
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