Implementing Sustainable Management with ISO 21500 Standards

Revision as of 11:34, 9 May 2023

Abstract

One of the biggest challenges that companies are facing today is adopting a sustainable project management strategy. Those challenges include the integrations of sustainable practices while securing the satisfaction of stakeholders and simultaneously providing profit ^[1] [3]. It is becoming increasingly important to incorporate sustainability in projects since stakeholders require ethicality, eco-friendliness, and economic efficiency during the life cycle of a project ^[2] [6]. Integrating sustainability into project management has both strengths and weaknesses. The main advantages of adapting sustainability into project management is the potential of increasing the value of the company, creating opportunities, reducing risk, and increasing profit ^[3] [7].

ISO 21500 is a project management standard that provides a framework for managing projects effectively. Developed by the International Organization for Standardization (ISO), this standard outlines guidelines for project management processes and terminology, with the goal of promoting consistency and clarity in project management practices across different industries and organisations. ISO 21500 can provide a useful framework for achieving sustainability as a core value in organizations and not just as a compliance requirement. This can be done by integrating sustainable practices into project management and thereby creating a culture of sustainability within the organization ^[4].

This article explores the potential of the ISO 21500 project management standard to achieve sustainable management practices in organizations. Among the potential benefits of this approach are increased efficiency, reduced costs, and improved reputation. ISO 21500 can be a powerful tool for organizations looking to integrate sustainability into their project management processes however, there are some limitations. One obstacle is that the standard only provides general guidelines and principles for project management but does not provide specific guidance on how to address sustainability or environmental issues. This can limit the ability of organizations to incorporate sustainability considerations into their project management practices.

Big Idea: Implementing Sustainable Management with ISO 21500 Standards

Sustainable project management involves the thought out planning, observing, and assessing the project. Evaluating the environmental, social, and economic features of the project's life cycle is an important part for it to achieve sustainability. The degree to which a project is successful in achieving sustainability is largely determined by the level of engagement and participation of the project team and stakeholders in its implementation, programs, and portfolios ^[1].

ISO 21500 is a globally recognized standard for project management that provides guidelines and principles for managing projects effectively. In 2012, the International Organization for Standardization (ISO) published ISO 21500 after a five-year development process. The goal was to create a process standard that could act as a common frame of reference for all project management concepts and standards. This standard was chosen because it had the potential to provide a universal and shared language for project management. Integrating sustainable management principles into ISO 21500 can help ensure that projects not only meet their objectives but also contribute to sustainable development ^[5] [25] ^[4].

One way to achieve sustainable management with ISO 21500 is to incorporate sustainable practices and considerations into project planning. According to the United Nations Development Programme, sustainable project planning should consider the potential social, environmental, and economic impacts of the project ^[6] [26]. This can involve conducting an environmental impact assessment to identify potential environmental risks and impacts associated with the project ^[7].[29]. It can also involve assessing the potential social impacts of the project on local communities, such as displacement or loss of access to resources ^[6].

A key element of both sustainable management and ISO 21500 is stakeholder engagement. Engaging with stakeholders is important for ensuring that the project meets their needs and expectations, as well as identifying potential risks and opportunities associated with the project ^[4] [24]. According to the International Institute for Sustainable Development, stakeholder engagement should involve a range of actors, including affected communities, civil society organizations, and local governments ^[8] [23]. Engaging with stakeholders can help ensure that the project is aligned with their values and interests, as well as identify potential opportunities for collaboration and support.

Risk management is another important principle of both sustainable management and ISO 21500. Risk management involves identifying potential risks and developing strategies to mitigate or manage them ^[4]. [24]. Sustainable risk management should consider potential risks related to the project's impact on the environment, society, and economy ^[7] [29]. This can involve assessing the potential environmental impact of the project and developing strategies to minimize or mitigate any negative impacts ^[6] [26]. It can also involve developing strategies to ensure that the project contributes to the long-term well-being of local communities and the economy ^[8].

Project evaluation is another important principle of both sustainable management and ISO 21500. Evaluating the project's impact against its objectives and competitive parties can help identify areas for improvement and ensure that the project is contributing to sustainable development. According to the United Nations Industrial Development Organization, project evaluation should consider the project's social, economic, and environmental impacts ^[9]. [27]. This can involve assessing the project's environmental impact and identifying opportunities for improvement or mitigation.

To conclude, using ISO 21500 to implement sustainable management principles can make sure that projects not only meet their objectives but also contribute to sustainable development. Sustainable management and ISO 21500 can be integrated to promote sustainable development through project planning, stakeholder engagement, risk management, and project evaluation.

Application

The predominant project management standards, like ISO 21500, do not adequately address sustainability in project management. These standards made by the Project Management Institute are, however, process-based and in order to introduce sustainability into project management, the processes approach has been the most commonly utilized by leading experts in the field. There are various tools that can be used to make project processes sustainable. All of them include the three pillars of sustainability, which are: economic, environmental and social. Among the processes that are frequently used are: stakeholder management, life cycle management, sustainability assessment, and decision-making ^[10], ^[4].

Stakeholder management

Like mentioned above, stakeholder management is becoming increasingly important in sustainability practices and literature. It plays a crucial role in introducing sustainability within companies by enabling participation in the agreement of the sustainable product or process's meaning and the development of sustainability assessment indices for a specific project. Furthermore, the process of integrating sustainability into a company requires the crossing of boundaries throughout the supply chain ^[11]. When it comes to managing a sustainable project, one of the initial challenges is to determine a sustainability strategy for the specific case. In this regard, stakeholder management has been recognized as an effective means of linking the strategy with social and ethical concerns ^[12]. According to various researches it is essential to connect stakeholder participation with the project life cycle. By including stakeholders in each activity of the project's upstream and downstream stages, the life cycle framework provides them with a comprehensive view that they might not otherwise have ^[10].

Life Cycle management

The life cycle framework is a primary focus for policies, businesses, and projects that prioritise sustainability criteria. Understanding the various life cycles involved in a project and how they interact with each other is an important starting point for aligning project management standards with sustainable development principles. In the process industry, there are typically three life cycles: ^[13]

• Project life cycle: This involves the stages of idea generation, development, and implementation.
• Asset/Process life cycle: This life cycle encompasses the design and development, construction, operation/implementation, and removal of the service.
• Product life cycle: This cycle involves the deliverable, which generates income for the company ^[13].

The life cycle assessment (LCA) is a commonly used tool in the industry to assess the environmental impacts of products, but it is often not practical for evaluating concepts at the early stages of development. This is because conducting a full LCA requires a significant amount of detailed information that is typically not available during the initial concept design stage ^[10].

Sustainability assessment

Various reference frameworks are available to assess sustainability, including those developed by the Global Reporting Initiative (GRI), United Nations Commission for Sustainable Development (UNCSD), Institute of Chemical Engineers (IChemE), and Wuppertal Institute. These frameworks cover economic, environmental, and social aspects ^[14]. The assessment of sustainability can be utilised for both project management and strategic decision-making. To ensure that sustainable outcomes are achieved, the sustainability assessment process must be explicitly designed to do so. A crucial factor in distinguishing between various practical applications of sustainability assessment is the sustainability framework or concept incorporated in each process ^[15]. [16]. Sustainable assessment tools are methods that can facilitate the comparison of various project or policy options and simplify the decision-making process ^[10].

A holistic framework for sustainability assessment tools consisting of three categories:

• Indicators and indices.
• Product-related tools.
• Integrated assessment ^[16].

Decision making

Decision making can refer to selecting the most suitable project or determining the most sustainable alternative once a project has been chosen. As sustainability has multiple dimensions, the analysis is always multi-criteria and, in some cases, multi-objective as well.

There are various decision-making tools that can be used to integrate sustainability considerations, including:

• Analytical Hierarchy Process (AHP): Used to determine the weight of sustainability indicators and sub-indicators at different levels, specifically in the steel industry.
• Analytic Network Process (ANP) and Distance to Target (DT) method: provides a decision-making system to develop new products that are more eco-friendly than their predecessors.
• Fuzzy rules systems: designed to select sustainable projects or portfolios regardless of type.
• Value management: Incorporates sustainability issues into its structure.
• Cognitive reasoning maps: The various sustainability indicators in infrastructure project assessment are illustrated in order to analyse the complexities and interactions between them.
• Decision windows: critical phases in the decision-making process to analyze relationships between integrated information, environmental values and sub-decisions ^[10].

Guidelines for implementing sustainable management based on ISO 21500

1. Develop a sustainability policy: Establishing a sustainability policy is the first step in implementing sustainable management. This policy outlines the organization's commitment to sustainability. Defining sustainability objectives, targets, and key performance indicators (KPIs) is an important part of the policy. It should also identify the roles and responsibilities of those involved in implementing the policy.
2. Conduct a sustainability assessment: Next step is to conduct a sustainability assessment of the organization's activities to determine their effect on the environment, society, and economy. This assessment will help you identify areas where you can make improvements to reduce your environmental impact and increase your social and economic benefits.
3. Develop a sustainability plan: Creating a sustainability plan based on the results of the sustainability assessment that outlines the actions the organization will take to achieve the sustainability objectives and targets. The plan should include specific actions, timelines, and responsible parties.
4. Integrate sustainability into project management: ISO 21500 provides a framework for project management that can be used to integrate sustainability into organization's projects. This includes identifying sustainability risks and opportunities, developing sustainability objectives and targets for each project, and tracking and reporting on sustainability performance.
5. Track and measure sustainability performance: It is important to keep track of and measure the sustainability performance to ensure that the organisation is progressing towards its sustainability objectives and targets. This includes tracking KPIs, conducting audits, and reporting sustainability performance to stakeholders.
6. Continual improvement: Finally, establishing a process for reviewing and improving the sustainability management system is essential to continuously improving the organization's sustainability performance. This process should include regular reviews of your sustainability policy, plan, and performance, as well as a process for identifying and implementing improvements ^[4].

Limitation

While integrating sustainable management principles into ISO 21500 can promote sustainable development, there are also limitations to achieving sustainability with ISO 21500 standards.

The main limitation is that ISO 21500 does not explicitly address sustainability or environmental issues. The standard provides general guidelines and principles for project management but does not provide specific guidance on how to address sustainability or environmental issues ^[17]. This can limit the ability of organizations to incorporate sustainability considerations into their project management practices, especially if their knowledge of sustainable project management methods is narrow

Another limitation is that ISO 21500 is a generic standard that does not consider the specific context or sector in which the project is being implemented. This can limit the ability of organizations to effectively address sustainability issues that are specific to their sector or context ^[17]. For example, a project in the construction sector may have different sustainability considerations compared to a project in the healthcare sector.

Moreover, ISO 21500 does not provide guidance on how to measure the impact of sustainability practices on the environment, society, and the economy. While the standard emphasizes project evaluation, it does not provide specific guidance on how to assess the impact of the project on sustainability or how to measure progress towards sustainable development goals ^[17]. This can limit the ability of organizations to demonstrate their commitment to sustainability and to report on their sustainability performance.

Furthermore, ISO 21500 focuses on the project management process and does not consider the entire project life cycle. Sustainability considerations are important throughout the project life cycle, from planning to decommissioning, and the standard does not provide guidance on how to address sustainability issues throughout the entire project life cycle ^[18]. This can limit the ability of organizations to effectively integrate sustainability considerations into their project management practices.

Finally, ISO 21500 does not provide guidance on how to address ethical considerations in project management. Sustainable development involves not only environmental considerations but also social and economic considerations, such as human rights, labor practices, and anti-corruption practices ^[18]. This can limit the ability of organizations to effectively address sustainability issues in a holistic manner.

While ISO 21500 can be a useful framework for promoting sustainable management practices, there are also limitations to achieving sustainability through the standard. Organizations should be aware of these limitations and consider additional measures to address sustainability and environmental issues in their project management practices.

Annotated bibliography

International Organization for Standardization (ISO). (2021). ISO 21500:2021 - Guidance on project management:

ISO 21500 is a project management standard that provides guidance and recommendations for effective project management. Any type of organization, whether public, private or common, and any type of project, regardless of its size, complexity or duration, can benefit from it. It provides stakeholders with a common language, concepts, and principles for communicating and collaborating. The standard covers various aspects of project management, such as planning, execution, monitoring, and control. It aims to enhance project performance and deliver successful outcomes.

Seuring, S., & Gold, S. (2013). Sustainability management beyond corporate boundaries: from stakeholders to performance. Journal of cleaner production, 56, 1-6:

The artlice explores the concept of sustainability management how to effectively integrate sustainability into organizations aswell as its implications. In terms of sustainability management, the authors argue that the interests and impacts of stakeholders should be taken into consideration beyond corporate boundaries. It also discusses the importance of implementing a standard to supplier partnerships and the development of appropriate performance measures. This article presents insights into how sustainability can be integrated into organizational strategy, operations, and performance measurement.

Marcelino-Sádaba, S., González-Jaen, L. F., & Pérez-Ezcurdia, A. (2015). Using project management as a way to sustainability. From a comprehensive review to a framework definition. Journal of cleaner production, 99, 1-16:

This article explores the relationship between project management and sustainability. It provides an extensive review of the literature and proposes a framework for sustainable project management. In order to achieve sustainability in project management, the authors argue that it is important to consider the environmental, social, and economic impact of a project throughout its life cycle, and they provide an overview of the key concepts and practices involved. The authors emphasize stakeholder engagement and participation in promoting sustainability, and suggest a range of tools and techniques for managing sustainable projects. Project managers can play a critical role in driving sustainable development through the promotion of sustainability through project management, which is the main objective of the article.

References

1. ↑ ^{1.0 1.1} El Khatib, M., Alabdooli, K., AlKaabi, A., & Al Harmoodi, S. (2020). Sustainable Project Management: Trends and Alignment. Theoretical Economics Letters, 10(06), 1276-1295. https://doi.org/10.4236/tel.2020.106078
2. ↑ Kivilä, J., Martinsuo, M., & Vuorinen, L. (2017). Sustainable project management through project control in infrastructure projects. International Journal of Project Management, 35(6), 1167-1183. https://doi.org/10.1016/j.ijproman.2017.03.004
3. ↑ Kahachi, H. A. H. (2017). Sustainability and Project Management – The Drivers and Benefits. Wasit Journal of Engineering Sciences, 5(1), 87-103.
4. ↑ ^{4.0 4.1 4.2 4.3 4.4 4.5} International Organization for Standardization (ISO). (2021). ISO 21500:2021 - Guidance on project management. Retrieved from https://www.iso.org/standard/50003.html
5. ↑ Silvius, A. G. (2015). Considering sustainability in project management processes. In S. S. Hasan, & R. Ahmed (Eds.), Handbook of research on sustainable development and economics (pp. 311-334). IGI Global
6. ↑ ^{6.0 6.1 6.2} UNDP. (2014). Human development report 2014: Sustaining human progress: Reducing vulnerabilities and building resilience. United Nations Development Programme. Retrieved from http://hdr.undp.org/en/content/human-development-report-2014
7. ↑ ^{7.0 7.1} European Commission. (2022). Environmental impact assessments. Retrieved from https://ec.europa.eu/info/law/law-topic/environmental-law/environmental-impact-assessments_en
8. ↑ ^{8.0 8.1} International Institute for Sustainable Development (IISD). (2018). Stakeholder engagement. Retrieved from https://www.iisd.org
9. ↑ UNIDO. (2017). Sustainable development goals and their targets: UNIDO’s contribution. United Nations Industrial Development Organization. Retrieved from https://www.unido.org/sites/default/files/2017-08/UNIDO-SDGs-Brochure-2017.pdf
10. ↑ ^{10.0 10.1 10.2 10.3 10.4} Marcelino-Sádaba, S., González-Jaen, L. F., & Pérez-Ezcurdia, A. (2015). Using project management as a way to sustainability. From a comprehensive review to a framework definition. Journal of Cleaner Production, 99, 1-16. https://doi.org/10.1016/j.jclepro.2015.01.122
11. ↑ Seuring, S., & Gold, S. (2013). Sustainability management beyond corporate boundaries: from stakeholders to performance. Journal of Cleaner Production, 56, 1-6
12. ↑ Singh, R. K., Murty, H. R., Gupta, S. K., & Dikshit, A. K. (2007). Development of composite sustainability performance index for steel industry. Ecological Indicators, 7(3), 565-588
13. ↑ ^{13.0 13.1} Labuschagne, C., & Brent, A. C. (2008). An industry perspective of the completeness and relevance of a social assessment framework for project and technology management in the manufacturing sector. Journal of Cleaner Production, 16(3), 253-262
14. ↑ Labuschagne, C., Brent, A. C., & Van Erck, R. P. (2005). Assessing the sustainability performances of industries. Journal of Cleaner Production, 13(4), 373-385
15. ↑ Shenhar, A. J., Milosevic, D. Z., Dvir, D., & Thamhain, H. (2012). Linking project management to business strategy. Project Management Journal, 43(5), 48-61. doi: 10.1002/pmj.2127
16. ↑ Ness, B., Urbel-Piirsalu, E., Anderberg, S., & Olsson, L. (2007). Categorising tools for sustainability assessment. Ecological Economics, 60(3), 498-508
17. ↑ ^{17.0 17.1 17.2} Wang, Y., Chen, Y., Wang, J., & Wang, J. (2021). Evaluating the sustainability performance of project management based on ISO 21500: Limitations and implications. Journal of Cleaner Production, 319, 128388
18. ↑ ^{18.0 18.1} Held, T., Birkholz, C., & Ott, H. (2019). Towards integrating sustainability and project management: A literature review and research agenda. International Journal of Project Management, 37(4), 521-538. doi: 10.1016/j.ijproman.2018.11.003