Sustainability is the New Green

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Sustainability is the New Green, featuring Rick Mazur, Commercial Segment Market Leader for Kodak’s Graphic Communications Group, who has been deeply involved in Kodak’s internal and customer sustainability initiatives.“The United Nations Division for Sustainable Development defines sustainability as ‘Development that meets the needs of the present without compromising the ability of future generations to meet their own needs’,” said Mazur. “As print buyers continue to push for green solutions, it is important for printers to understand the entire sustainability picture, and that is what this session is about.”Mazur will be sharing his extensive sustainability knowledge during the session, as well as providing access to valuable resources that any business can use to improve its sustainability ratings.

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© 2008, WhatTheyThink.com

Hosted by WhatTheyThinkSponsored by Kodak

Sustainability is the New Green!

Rick MazurV.P. Global Commercial Segment Marketing Kodak Graphic Communications Group

© 2008, WhatTheyThink.com 2

… taking steps beyond compliance to continually improve the Economic, Environmental and Social performance of a business, product or service.

Business Environment

Sustainability is the New Green

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Opportunity?

or

Burden

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Why has sustainability become so important?

Where are you on your path to sustainability?

Where is the industry on its path to sustainability?

Implications and strategies

Conclusions

Sustainable Strategies from Compliance to Differentiation

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What is Sustainability?

Triple Bottom Line – A reflection of a Company’s overall economic, social and environmental performance

Responsible Growth – Reducing our impact on the environment, protecting the safety of our employees and customers, and supporting the communities where we do business – while ensuring the sustained growth and profitability of the Company

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Who Cares and Why?ConsumersEnvironmental groupsBrand ownersDesignersShareholdersCorporate advertisersRegulatory agenciesEmployeesFuture generations

Depletion of Natural

ResourcesEnergy Costs

Shareholders

Consumers

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Consumers85% are willing to switch brands or purchasing habits to make tomorrow a better place

92% stated protecting the environment as a top concern

73% said they were willing to pay more for environmentally conscious products

Source – 2007 Edelman Consumer Survey

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Governmental PolicyEPA sets tougher air quality standards

• Current standard of 84 ppb of ozone• Have to 2010 to meet new limit of 75 ppb

Estimated cost of compliance is $8.4 billion

Lieberman Warner Climate Security Act is now the leading cap-and-trade bill in CongressGreenhouse Gas cap covers about 80% of U.S. economy

• 2012 Cap – Set at 2005 emissions• 2020 Cap – 15% below 2005 levels• 2050 Cap – 70% below 2005

US Electrical Energy Sources

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Shareholders

… “ increasingly, money managers are incorporating environmental, social and governance performance

factors into their investment decisions- Bruce M. Kahn, Deutsche Bank

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Source – Kodak client and web surveys , n=415

No plans

Have investigated, but not started

No certifications, but programs underway

Programs in place, with certifications

Where Are Print Service Providers on the Journey?

0 405 10 15 20 25 30 35

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What is Your Position on Sustainability?

Not involved Very involved

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Where Are You on Your Passage?Let’s take a quick test on the components of a Sustainability PlanAsk you to rank (1,3 or 5) your business on:

• Strategic intent• Stakeholder perceptions• Performance management• Industry stewardship

Steps you can take…

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Strategic Intent1 RATING 3 RATING 5 RATING

Sustainable or Responsible Not Documented Documented in Part of Triple Care Strategy response to Bottom Line

Customer Pull around Minimal Influence, but not Important to customer,Sustainability critical to printer factor choice process,requirements choice materials and suppliers

Shareholder value Minimal Influences investment Critical to investmentof sustainability in new technology in new technology

equipment, process, equipment, process,materials and supplies materials and supplies

Organizational Structure HS&E goals Implementing EstablishedManagement systems not evident in HS&E Management HS&E Management

strategy System – Self System – Third partyCertified

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Stakeholder Perceptions1 RATING 3 RATING 5 RATING

Employee perceptions Uncaring Neutral Embrace HS&E polices and practices

Customer perceptions Bad Actor Neutral Green and caring print provider

Industry perceptions Bad Actor Neutral Green and caring print provider

Public Investment Bad Actor Neutral Green and caring Community print provider, perception and other socially

responsible investors would buy shares

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1 RATING 3 RATING 5 RATING

HS&E Compliance No significant safety or property losses or fines in last:and Loss 1 year 2 years 3 years

Energy Consumption No goals Tracked but NOT Tracked OPENLYshared with employees, shared with employees,customers, community customers, community

Water Conservation

Air Emissions

Waste Management

Safety

Suppliers linked to No clear EHS Standards established Linked with LCA of processProduct Development or LCA design standards for design standards and products

Performance Management – Clear objectives and standards?

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Industry Stewardship1 RATING 3 RATING 5 RATING

Certifications, awards None 1 or more 1 or more inrecognition last 2 years last year

Community Involvement None Not formal, but Clear strategy some supportprovided

Recycling Initiatives in-plant only Assistance provided Assistance provided to Customers to customers and

industry on options forrecycling andspecifications forrecyclable materials

Customer Outreach/Training None Not formal, but Clear strategy to some support improve client as requested awareness of

sustainability in Printindustry

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Burden or Opportunity?

Average profits of 2% to 4% for Print Service Providers

Increasing costs of energy, raw materials

Weak economy

Longer term prospects that these costs will increase

RisksDo not know your current footprint

No plan

No organizational strategy

Regulatory fines

Customer and employee retention

Strategic opportunities1% - 2% to the bottom line in next 18 months

Higher customer and employee retention

Customer acquisition from differentiated position

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Printers Leading the Way

AC Graphics – Miami, FLBrown, Knight and Truscott - UKFocus Group – Sydney, AusGeoff Neil Printers – UKHemlock Printers – Vancouver, CAMetropolitan Fine Color – Vancouver, CAPictorial Offset – Carlstadt, NJUlenspiegel – GMBHAnd others…

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Complete a sustainability auditBuild a dialog with your customersThink about the paper you useThink about how paper is madeThink about the ink you useTalk to industry partnersImplement sustainable business modelsLean and Green go togetherSet standards and seek certificationStay informed

Practical Steps to Improve the Triple Bottom Line

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Documented StrategyStakeholder surveyCustomer surveyPerformance objectivesPerformance MetricsRisks and opportunitiesLife Cycle AnalysisCertificationsCommunity OutreachCustomer & employee training

Complete a sustainability auditClarify organizational ownershipSet business priority and strategyDetermine your GHG emissionsPrioritize bottom line impact ofstrategies and programs

• Energy and waste

Practical Steps to Improve the Triple Bottom Line

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Using Kaizen event to galvanize team mission, scope and measuresQualify and attack triple bottom line opportunities and risks

• Walk the Flow, Value Stream MappingProvide process improvements you can share with your customers

“Lean” and “Green” go together

Practical Steps to Improve the Triple Bottom Line

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Perform Lifecycle review on targeted print applicationsDevelop substrate substitution options for virgin paper and plasticsEmploy production technologies that reduce use of natural resources

• Automated workflows - Web2Print, Virtual proofing• Non process CTP systems• Advanced screening techniques • Digital color production systems• Compact fluorescent lamps• Low VOC inks• Hybrid or electric vehicles

Implement sustainable business modelsPractical Steps to Improve the Triple Bottom Line

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Lifecycle management Print on DemandShort run printingVirtual warehousing

Rethink the economic modelPractical Steps to Improve the Triple Bottom Line

Distribute and printPersonalized direct mailTransPromo bills andstatement

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Your suppliers and industry organizations should be your#1 resource

Direct resources toward meaningful local programs• Education and tools• Training• Reduce, recycle programs• Stay current on trends• Industry research

Talk to industry partnersPractical Steps to Improve the Triple Bottom Line

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Define your marketing strategy Brand your programLaunch with a big eventHold on going eventsCreate/add to your website Start a customer newsletterEmployee orientation

Customer recognitionEmployee recognition

Make Sustainability Part of Your Company Culture

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Closing CommentsSustainability is journey with significant opportunitiesCan provide a competitive advantage Becoming business criticalBegin or expand your program

Baseline your businessEstablish organizational planDevelop strategy and implementWork with your industry partnersPlay to win

© 2008, WhatTheyThink.com

Hosted by WhatTheyThinkSponsored by Kodak

Toward Greater Sustainability … Together

www.graphics.kodak.com/gogreenThank you!

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