Driving Profitability With Sustainable Business Practices Final

Grass Roots Green:Driving Profitability with

Sustainable Business Practices

Brad BarberaMay, 2009

Please Note: The slides for this presentation are primarily graphical in nature. To fully understand the presentation, it is best to download it, open it up in PowerPoint, and view it in the "Notes View" format. Full speaker's notes are included there, explaining what was discussed in each slide.

Introduction

Who isn’t speaking to you today?

Introduction to Fellowes

MISSION:to provide innovative workspace solutions to help people work more securely, comfortably and confidently.

FOUR CORE VALUES:• Integrity• Teamwork• Passion• Initiative

Family-ownedFounded in 1917Operations in 15 countriesEmploying 2500+ worldwide

Named one of "Chicago's 101 Best and Brightest Companies to Work For" in 2007

Agenda

• Initiating Sustainable Practices in your Business

• Integrating Sustainability into the Front End of Innovation

• Anticipating and overcoming hurdles

• Balancing competing demands

Introduction

What is “sustainability?”

Ecological(Planet)

Economic (Profit)

Social(People)

Introduction

What is sustainability?

Ethics

Environment

Employment

Value

Community

Profit Relationships

TransparencyGovernance NinePrinciples

ofSustainablePerformance

Source: Epstein and Roy, “Improving Sustainability Performance”

Getting Started

“If you want to transform your company, it helps to have a crisis.” ~Dennis Welch

Getting Started

“Turning the Flywheel”

“It must be considered that there is nothing more difficult to carry out, nor more doubtful of success,nor more dangerous to handlethan to initiate a new order of things;for the reformer has enemies in all those who profit by the old order, and only lukewarm defenders in all those who would profit by the new order...”~Niccolo Machiavelli

Getting Started

• Find Help…Networking

Getting Started

• Set Objectives

Mission/Vision

Values

Goals

"It's not enough to be busy. The question is: what are you busy about?" ~ Henry David Thoreau

Getting Started

• Think Globally, Act Locally

CircleOf

Influence

Getting Started

• Build on Foundations

Getting Started

• Prioritize

Getting Started

• Plan Communication

Getting Started

What We Did - Networking

Formed Volunteer Fellowes “Green Team”• Multi-Function• Multi-SBU• Multi-National

Getting Started

What We Did - Objectives

Fellowes “Green Team”: Four Sub-Teams

Communication Team – Awareness

Internal Fellowes Team – Culture

Science Team – Learning

Current State Team – Assessment

Getting Started

What We Did – Global/Local

Coordinated Efforts in Branding

Coordinated Efforts in Compliance

Getting Started

What We Did– Built on Foundations

Getting Started

What We Did – Low-Hanging Fruit

Getting Started

What We Did – Communication

Anticipating Hurdles

“Forget the science debate. The regulations will change someday, and if we’re not ready, we’re in trouble.” ~Jim Rogers, CEO Cinergy

Anticipating Hurdles

Would you place this bet?

You give me $50

I flip a coin

Anticipating Hurdles

$2/month for 10 years

Would you place this bet?

Anticipating Hurdles

• Executive Engagement

Anticipating Hurdles

• Identify Your Stakeholders

Shareholders

Management

Employees

Suppliers

Customers

Consumers

Local Population

Regulators

Special Interests/NGOs

Industry

Anticipating Hurdles

YOU

Conflicting Stakeholder Needs

Anticipating Hurdles

Transparency Questions

Anticipating Hurdles

Resource Limitations

Anticipating Hurdles

Defining Metrics

“What gets measured, gets managed.” ~Peter Drucker

Anticipating Hurdles

Being “Real”

Anticipating Hurdles

International Issues

Anticipating Hurdles

Unintended Consequences

“No good deed goes unpunished.”~attributed to Oscar Wilde

Sustainability in FEI

Sustainability in FEI

Starts with concept generation

Sustainability in FEI

Design for The Environment

Design for Use

Design for Manufacturability

Product and Service Design

Sustainability in FEI

Design for the Environment

Ethics

Environment

Employment

Value

Community

Profit Relationships

TransparencyGovernance NinePrinciples

ofSustainablePerformanc

e

•Material Choices

•Leveraging Platforms

•Efficient Use of Resources

•Trend Analysis

•Human Factors

•Packaging

•Distribution

•Maintenance

•Handling

•End-of-Life/Reuse

Sustainability in FEI

Sustainable Portfolio Management

Ethics

Environment

Employment

Value

Community

Profit Relationships

TransparencyGovernance NinePrinciples

ofSustainablePerformanc

e

Sustainability in FEI

Use “Green as a “Tipping Point”

Appendices

Tools Resources Contact Information

Appendices

AUDIO Template for Self-AssessmentAUDIO Template

Challenge Aspects Upstream Downstream Issues Opportunities

1. Climate Change          

2. Energy          

3. Water          

4. Biodiversity          

5. Chemicals/Toxics          

6. Air Pollution          

7. Waste Management          

8. Ozone Layer          

9. Oceans          

10. Deforestation          

11. Other Issues          

Available for download in MS Excel format, with example and instructions, at http://www.eco-advantage.com/pdf/AUDIOAnalysis.xls

AppendicesFellowes Sustainable Business Team Kick-Off AgendaThursday, September 27, 2007

Introductions

Define the Context of the TeamForum to share information, coordinate efforts, and support decision-making on issues pertaining to Fellowes’ environmental initiatives

Define the Scope/Mission/ObjectivesSecuring a common understanding of best practices for “sustainable business” according to the scientific community, global markets, and legal regulationsSharing knowledge gained in different projects around the company, and coordinating efforts to maximize the benefits of sustainability efforts

Discuss Team Composition and RolesKey Functional Teams representedAll Business Units representedGlobal Team Membership

Discuss Authority and BoundariesProposal: the team will be advisory in nature, with expectations of evolving to an executive-sponsored governance group

Discuss Resources and SupportCurrent resources available are limited to the time and effort of the team members. Specific project execution must be supported by the business units.

Discuss how the Team will FunctionMeet monthly for one hourAssign roles for coordination and communication

ResearchSome research in this area has already been done by several team members. That information will be shared electronically and discussed at the next meting.

Determine Next StepsSecure agreement to team structure, roles, responsibilities, etc.Schedule follow-ups

AppendicesSustainability Team Science Committee Scope StatementMission:To promote the long-term sustainability of Fellowes’ businesses through the ongoing collection, evaluation, and communication of information

regarding environmentally and socially beneficial materials, products, processes, and packages for the Fellowes Sustainable Business Team.

Purpose:1) To guide the Fellowes organization in the selection and implementation of effective programs that benefit the environment and the business.2) To be the internal experts on the validity of environmentally friendly claims by:

• Gathering relevant published information and research on the environmental efforts, policies and certification systems of our suppliers, customers, and markets globally;

• Evaluating all information critically with regards to short- and long-term impact, reasonably anticipated real world conditions, and scientific rigor;

• Publishing guidance documents with the intent to drive effective decision-making for Fellowes global NPD, CPD, Marketing, Supply Chain and Facilities groups.

3) Provide satisfactory evidence of the sustainability of materials, products, packages, designs, and manufacturing methods that provide environmental and/or social benefits while also being commercially viable and advantageous for Fellowes.

Challenge:As “green” efforts are demanded more globally, numerous proposals and claims will be put forth on materials, products, packages, and processes.

Frequently, such proposals have great surface appeal, but fail to deliver real benefits when fully evaluated. The evaluation is often very difficult, and will require making assumptions and forecasts of a future state that will have highly variable accuracy.

Method:As opportunity areas are found, they will be divided into four tiers:

• Obvious - Has an obvious, substantial, and tangible positive benefit to the environment and the business• Likely - Has a reasonable likelihood of having a positive benefit to the environment and the business• Uncertain – Has a potential for a positive benefit to the environment and the business, but may also have neutral or downside impact.• Unlikely – Has little chance of having a tangible positive benefit to the environment and the business

These tiers will allow the business teams to focus support and development efforts on areas that offer the best and most certain positive returns to both the environment and to Fellowes.

Appendices

Fellowes EnvironmentalPolicy is summarized at:http://www.fellowes.com/fellowes/site/aboutus/about_EnvironmentalPolicy.aspx

Recommended Resources

The Triple Bottom Line by Andrew Savitz Green to Gold by Daniel Esty and Andrew Winston Making Sustainability Work by Marc J. Epstein

The Business Guide to Sustainability by Darcy Hitchcock and Marsha Willard

Product Design for the Environment by Fabio Giudice, Guido La Rosa, Antonino Risitano

Cradle to Cradle by William McDonough and Michael Braungart

The Green Business Guide by Glenn Bachman

http://www.gemi.org/metricsnavigator/http://www.sustainablebusiness.comhttp://www.worldchanging.com/business/http://www.pprc.org/pubs/epr/dfe.pdf

Contact Information

• mail@bradbarbera.com• http://www.linkedin.com/in/bradbarbera• www.BradBarbera.com

A complete copy of this PowerPoint presentation, including speaker’s notes, will be available for download on my website following the conference.