Sustainability through Engagement, Empowerment, & Mobilisation
Standardised Transformation Methodology CTM (Change through Movement) with variations for leading FIs and real-economy large corporations
CTM (Change through Movement) is the std Transformation Methodology with variations for leading FIs and real economy large businesses to undergo their systemic change, innovate at scale for their Just NZ Transition at the pace they must leading to their long-term sustainability and disclosure of universal ESG metrics that solve the problem of Greenwashing. It is based on the concept of the long-term sustainability of entities. An entity becomes so when it contributes directly or indirectly towards the bigger ecosystem it is a part of. It has an outward look not just inward. It is multi-stakeholder focused that is to say, it contributes towards the customer, employees, suppliers, environment society and of course the shareholders directly or indirectly. The positive presence of such an entity is felt by the ecosystem surrounding it, and the entity becomes robust and thereby sustainable for the long term. These direct or indirect impacts do not come from a profit mindset but the entities having a purpose, a higher purpose beyond just making a profit. The std. Transformation Methodology CTM (Change thru Movement) embodies this concept and has more aspects to make it objective and measurable, leading to the disclosure of the universal ESG measurements for these entities.
The current CTM v2.0 has evolved from the initial CTM v1.0, over the last five-plus years. It has two halves - the Movement and the Objectivity. The Movement results in employee engagement and a change that is voluntary and thus devoid of friction. It begins with a beacon, grows like a snowball, and becomes a movement across the organisation. It can sustain the momentum for a very long period. Large-scale transformation requires such magnitude of employee participation and longevity. Employee engagement happens through the entity’s purpose, a higher purpose beyond just making a profit. With a Purpose like that and people seeing their connection to it, which of course requires many peoples' deliberate action, changes everything. People find a new meaning in their work. They start seeing their aspirations towards this higher purpose, and they have ideas. They take initiative and create projects to bring their ideas to life. This leads to innovation. Experimentation, failures and learnings repeat making people more entrepreneurial, and thus culture shifts. Experimentation requires a space of psychological safety, which comes from their manager’s support and the system surrounding them. It is a culture away from Command and Control - a must for innovation at scale.
Earlier, CTM v1.0 included the Movement and its application for the Digital Transformation. It was about bringing business process transformation in a DIY manner in a systemically important bank wherein people engaged through the purpose of the bank, which also led to culture change. It resulted in the envisioning of the regTech product CBD (Compliance by Design) for the corporate and investment banks, that was developed by another team. It further enabled them to deliver towards their purpose more powerfully.
CTM v2.0 was initially about the bank contributing towards its purpose through self-initiated projects. These were the projects apart from those for digital transformation as were in CTM v1.0. As these projects contributed towards the purpose of the bank, their direct or indirect impacts also aligned with one or more SDGs. These projects included the transactions of the bank, and they were called self-initiated projects as, at that time, there was not much focus on the non-financial aspects of a transaction. This also created a mechanism to bring the bank’s focus to its contribution to the bigger ecosystem that it is a part of, directly or indirectly. The Movement included Purpose, shifting mindset and culture, innovation at scale, a constant pipeline of self-initiated projects and their non-financial outcomes and the embedded quality measurements that became the qualitative ESG metrics. The initial objectivity was based on the assumption that the bank's total dir/indirect impacts towards its one Purpose is equal to the sum of its total dir/indirect impacts towards its 16 SDGs through its multi-stakeholder focus, leaving aside the 17th (created to support achievement of other 16), its relative focus across SDGs and a governance framework at the bank's level. Thus this CTM was initially, just to enable the bank to become sustainable for the long term.
The Objectivity in CTM v2.0 was further enhanced and it is now about entities' non-financial outcomes through their GHG reductions directly or as-financed to achieve their NZ goals in alignment with their sectoral pathways dir/as-financed and achieving their other SDGs likewise, through their multi-stakeholder focus and in the perspective of their SDG relative focus. It is extended to have variations for leading FIs and real-economy large businesses. Note, the other IPs (Impact Parameters, other than the GHG reductions for SDG13) will be incorporated into this methodology once they are discovered by the world, standardised for all parameters including their goals and pathways and adopted by the large businesses, their targets periodically extended to their s/chains & v/chains who feed into their IP values (need policy support) and SMEs too with some standardisation directly and the leading FIs indirectly. For now, they are assumed to be so. Read more about CTM wrt its periodic IP focus - its baseline (dir/as-financed) and targets in alignment with its sectoral pathways directly or as financed, periodic relative focus across SDGs - their ideal, actual, and targets, projects and non-financial outcomes' governance framework and the universal ESG metrics here. The methodology also has the provisions to incorporate GFANZ’s, TPT’s and the like from other countries' existing or upcoming requirements, recommendations and guidelines; leverage on standardised sectoral Impact Parameters from applicable standardising Bodies or as decided, the standardised sectoral pathways; leverage on the current and future possibilities from UN-SDGs, NZDPU, SBTi, etc. as well as include any expert knowledge as needed to achieve specific goals in alignment with sectoral pathways directly/ as financed. Thus, this improved vision of the Objectivity will bring objectivity to the systemic change, enabling entities to innovate at scale to achieve their Just NZ Transition at the pace they must, leading to their long-term sustainability and disclosure of universal ESG metrics that can solve Greenwashing.
In both the versions of CTM the entity contributed towards the bigger eco-system that it is a part of directly or indirectly by reducing negative impacts say by improving the robustness or compliance of the bank through digital transformation or increasing positive dir/indirect impacts through entities’ credible and impactful projects contributing towards the purpose of the entity. Today, these contributions are in the form of GHG reductions dir/indirectly to achieve the entity's NZ Goals in alignment with their sectoral pathways dir/as-financed, and create other dir/indirect impacts to achieve their other SDGs likewise through their multi-stakeholder focus and in the perspective of their SDG relative focus.
The project plan written for CTM v2.0 is then nothing but the std. NZ Transition Plan with variations for leading FIs and real economy large businesses for their Just NZ Transition leading to their longterm sustainability. These outcome metrics or the dir/indirect impacts from the self-initiated projects are converted into universal ESG metrics’ quantitative part. The qualitative part of the universal ESG metrics comes from the embedded quality measurements in the first half, the Movement, in std. Transformation Methodology CTM and is independent of the entities and their categories or sectors. These measurements are authentic, transparent, comparable and decision-worthy and capable of solving the problem of greenwashing.
Hence with the universal ESG metrics and the std NZ transition Plans to deploy CTM both with variations for leading FIs and real-economy large corporations, we have a robust, consistent and scalable mechanism to help these entities undergo their systemic change and innovate at scale for their Just NetZero Transition at the pace they must leading to their longterm sustainability and disclosure of universal ESG measurements that can solve the problem of Greenwashing. These universal ESG metrics for the corporates will enable measuring their creditworthiness while incorporating these metrics alongside their financials in an authentic, transparent, comparable and decision-worthy manner. At the same time, the universal ESG metrics for the FIs will enable them to comply with regulations.