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Governments, Society, Business and the Environment: From Competitors to Compatriots Roger Ballentine President, Green Strategies, Inc. Act NOW Kronborg Castle September 14, 2013

Governments, Society, Business and the Environment: From Competitors to Compatriots

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Page 1: Governments, Society, Business and the Environment: From Competitors to Compatriots

Governments, Society, Business and the Environment:

From Competitors to Compatriots

Roger BallentinePresident, Green Strategies, Inc.

Act NOWKronborg Castle September 14, 2013

Page 2: Governments, Society, Business and the Environment: From Competitors to Compatriots

Roger Ballentine

President Green StrategiesWashington, DC

Other Current and Past Roles:

• Business Strategy and Sustainability Advisor to Fortune 500 Companies

• Partner Clean Energy Private Equity firm -- Arborview Capital

• Visiting Professor, Harvard Law School

• Chairman of Clinton White House Task Force for Climate Change

Page 3: Governments, Society, Business and the Environment: From Competitors to Compatriots

Climate Change in the Clinton Administration

• BTU Tax - Failed • Kyoto Protocol – No• Domestic controls – No

• BUT• Clinton’s Climate Change

Action Plan• NGOs, Business and Politics

– Began to align• The President’s “Big Idea”

Page 4: Governments, Society, Business and the Environment: From Competitors to Compatriots

The Clinton Years: Lessons Learned

• Multi-lateral policies flow from domestic consensus – NOT the other way around

• We needed a new paradigm of the relationship between government, wealth creation and environment• Work with business leaders• …and NGOs• The profit motive: the cause and the solution?

• Government must facilitate the alignment of social good and private wealth creation

• Success on Climate Change would need new private sector model – “Sustainability 2.0”

Page 5: Governments, Society, Business and the Environment: From Competitors to Compatriots

U.S Climate Politics Today• The zero-sum game of U.S. partisan politics subsuming

progress• Two party system in which one party does not accept

overwhelming scientific evidence• Congress NOT a partner – BUT . . .

• President Obama is Leading • Historic mobile source rules• Regulation to restrict GHG emissions• HFC agreement with China

• Fundamental shift in U.S. energy landscape

Page 6: Governments, Society, Business and the Environment: From Competitors to Compatriots

Sustainability 2.0

Aligning Business, Society and the Environment

Page 7: Governments, Society, Business and the Environment: From Competitors to Compatriots

Business and Environment – Phase 1

• NOT a Business Issue• Lower Compliance Costs• Put the Lawyers in Charge• Be prepared to Fight the Government• Cost Containment• Brand Protection

• Exxon (Valdez); Union Carbide (Bhopal)

Page 8: Governments, Society, Business and the Environment: From Competitors to Compatriots

Business and Environment – Phase 2

• But if Bad Environmental Result in Hurts Brand, then maybe . . .• The value of intangible value

• Marketing Advantage? Image Improvement?• Some Investors now care??• But Beware Greenwashing

Page 9: Governments, Society, Business and the Environment: From Competitors to Compatriots

SUSTAINABILITY 1.0 …or what sustainability was…

Running your business in an environmentally responsible fashion?

Putting social values on par with business priorities?

“Meeting the needs of the present without compromising the ability of future generations to meet their own needs.“ (Brundtland Commission)

Annual Sustainability Reports (on recycled paper)

Page 10: Governments, Society, Business and the Environment: From Competitors to Compatriots

Sustainability 2.0: Not an Option; a Competitive Imperative

• Sustainability 2.0 is about innovation, change and improvement -- not just compliance and CSR

• Sustainability 2.0 is a core business issue – not philanthropy or messaging

• It’s about proactively managing all of these challenges and finding opportunities to enhance business performance and deliver increased value to shareholders and to stakeholders.

Page 11: Governments, Society, Business and the Environment: From Competitors to Compatriots

EconomicGrowth

• Revenues• Expenses

• Earnings• Shareholder Return

EnvironmentalStewardship

SocialResponsibility

• Diversity• Human Rights • Labor Standards• Community Dialogue• Employee Enjoyment

Socio-Economic

• Job Creation• Skills Enhancement• Local Economic Impacts• Social Investments• Business Ethics

Eco-Efficiency

Socio-Environmental

• Global Climate Change• Resource Management• Safety & Health• Local Environmental Impact

• Biodiversity• Waste Minimization

• Emissions Reduction• Regulatory Compliance• Incident/Spill Prevention

• Resource Efficiency• Energy Efficiency• Product Stewardship• Life-Cycle Analysis

Sustainability = “Green” PLUS Economic Growth and Social Responsibility

Corporate Sustainability 2.0: Core to Business

Sustainability

Source: ICF Consulting

Page 12: Governments, Society, Business and the Environment: From Competitors to Compatriots

Sustainability 2.0:

• Not just a theory . . .

Page 13: Governments, Society, Business and the Environment: From Competitors to Compatriots

Sustainability 3.0?

• Energy and Resource Efficiency – Business 101• “Societal imperatives” not just reconciled with business

strategy pursuant to governmental mandates – they become “Business Imperatives”. Failure to do so puts enterprise at risk

• No more CSOs• No more “Sustainability Consultants”

Page 14: Governments, Society, Business and the Environment: From Competitors to Compatriots

Partnerships & NetworksFueling the 21st Alliance of Social, Business and Environmental Value

Page 15: Governments, Society, Business and the Environment: From Competitors to Compatriots

Negative Pressure has its Place

• NGOs can put pressure on laggards

• Best result is where companies reluctantly discover that there is value to be had

• Dell has some of the greenest practices in IT now – and business value NOT sacrificed

Page 16: Governments, Society, Business and the Environment: From Competitors to Compatriots

Positive Alliances the New Norm

• Many organizations shifting to work with business

• Industry is doing the same internally, per industry and across sector networks

• Organizations dedicated to defining and maintaining sustainable business practices

Page 17: Governments, Society, Business and the Environment: From Competitors to Compatriots

Governments, Society, Business and the Environment: Compatriots

• Must align to solve climate problem• Not a zero-sum game: create more wealth, a healthier environment, and more stable governments

• Solutions must be BOTH governmental and non-governmental

• ActNOW -- a big step in the right direction.

Page 19: Governments, Society, Business and the Environment: From Competitors to Compatriots

Green Strategies provides strategic advice, business intelligence, and consulting services with regard to: corporate sustainability; clean energy and environmental governmental policy; stakeholder engagement; and energy/clean technology investment and transaction evaluation – all with a goal of maximizing business opportunities and organizational goals.

Our main services include:

Clean Technology Market Services: We offer unparalleled insight into complex and dynamic business drivers for investment guidance in the “clean tech” marketplace, assisting with due diligence and project evaluation.    

Strategic Business Consulting: We help clients identify and develop customized marketing, investment and sustainability strategies that deliver value to their stakeholders and the environment and how to best align these strategies with their core business model to achieve maximum results.

Governmental & Stakeholder Affairs: We design solutions to position our clients for success in the public policy arena, helping them communicate their views to key policymakers, build critical alliances with the sustainability community.