Embed Size (px)
DESCRIPTION
“The Next Sustainability Wave: Building Buy-In and the Business Case”
Citation preview
The Human Side of SustainabilityThought Leader Webinar Series #2:
“The Next Sustainability Wave: Building Buy-In and the Business Case”
Welcome Everyone!Before we get started, here are a few considerations that will help you make the most of your experience today:
• If you wish, type a brief introduction about yourself into the chat bar at the right of this screen
• This is an interactive webinar. We value your questions and comments. Periodically during the session we will ask you for input. You are also welcome to type questions into the chat bar.
• We will respond via email later to questions we do not address during the webinar
• This webinar is being recorded for posting on our Transitioning to Green™ website
• Out of consideration for fellow participants, please mute your line (*6) if there is background noise where you are, and un-mute (*6 if you wish to voice a comment)
This webinar is brought to you by Transitioning to Green™ • www.transitioningtogreen.com
The Next Sustainability Wave: Building Buy-in and the Busine$$ Ca$e
Bob Willard [email protected] www.sustainabilityadvantage.com
Transitioning to GreenThought Leader
Webinar Series #2
April 14, 2011
The “Sustainability Imperative”
David A. Lubin and Daniel C. Esty, “The Sustainability Imperative,” HBR May 2010
Megatrend: “A fundamental shift in the competitive landscape that creates
inescapable threats and game-changing opportunities ... profoundly affects companies’
competitiveness and even their survival.”
Over the last 10 years, the “Sustainability Imperative” has emerged,
magnified by escalating public and governmental concern about climate change, industrial pollution, food safety,
and natural resource depletion, among other issues.”
Significant CEO Mindset Shift
Survey of 766 worldwide CEOs, including 50 in-depth interviews UN Global Compact and Accenture study, “A New Era of Sustainability,” June 2010
… fully embedded into company strategy and operations
CEOs Agree /Strongly Agree that sustainability should be ….
… discussed and acted on by boards
… fully embedded into subsidiaries’ strategies and operations
… embedded throughout the global supply chain
… the basis for industry collaborations and multi-stakeholder partnerships
… incorporated into discussions with financial analysts
2010 Increase Over 2007
Stakeholders Driving Sustainability
Survey of 766 worldwide CEOs, including 50 in-depth interviews UN Global Compact and Accenture study, “A New Era of Sustainability,” June 2010
Stakeholders who CEOs believe will have the greatest impact on the way they manage societal expectations
Consumers
Employees
Governments
Communities
Regulators
Media
Investment Community
Suppliers
NGOs
Boards
Organized Labor
Other
CEOs: Sustainability Drivers
Survey of 766 worldwide CEOs, including 50 in-depth interviews UN Global Compact and Accenture study, “A New Era of Sustainability,” June 2010
Brand, trust, and reputation
Potential for revenue / growth / cost reduction
Personal motivation
Consumer / customer demand
Employee engagement and recruitment
Impact of development gapson business
Governmental / regulatory environment
Pressure from investors / shareholders
Top 3 drivers of CEOs’ action on sustainability issues
Corps Are Investing in Sustainability
• 59% of companies in all industry sectors increased their investments in sustainability in 2010, versus 25% in 2009.
• 69% expect their organization to step up its investment in and management of sustainability in 2011.
MIT Sloan and the Boston Consulting Group winter 2011 research report,“Sustainability: The ‘Embracers’ Seize Advantage,” Feb. 2011
Definitions of Sustainability
Sustainable Development (SD)Meeting the needs of the present generation
without compromising the ability of future generations to meet their own needs
-- Brundtland Commission, 1987 –
SustainabilityThe possibility that human and other forms of life on earth
will flourish forever -- John Ehrenfeld, Professor Emeritus. MIT –
Sustainable Development (SD)Enough - for all - forever
-- African Delegate to Johannesburg (Rio+10) --
The 4 DON’Ts of Sustainable Behavior
... buildup of substances extracted from the earth (e.g. heavy metals, fossil fuels, their life-cycle polluting byproducts)
... buildup of chemicals produced by society (e.g. 70,000+ chemicals, dioxins, PCBs, their life cycle byproducts)
... degradation of nature and its natural processes (e.g. over-harvesting, species extinction, peak soil, water security)
... conditions that undermine people’s capacity to meet their basic human needs and well-being(e.g. unsafe working conditions, chasm between the wealthy and the poor)
Do not contribute to the…
http://www.naturalstep.org/the-system-conditions;Darcy Hitchcock, “Sustainability Buzzwords,” ISSP Insight, October 2009
Core Concepts of Sustainability
Futures ThinkingIntergenerational responsibility
(Eco-)Systems ThinkingCarrying capacity of the planet
to absorb waste and support life
Social JusticeEquity, Dignity, Basic services, Human rights,
Stakeholder voices
************************************
Economic, Environmental, Social/Culturalresponsibilities
Sustainability 3-Legged Stool
Sustainability
Economic LegGood JobsFair wages
SecurityInfrastructure
Fair Trade
Social Leg Working conditions
Health servicesEducation services
Community & CultureSocial justice
Environmental Leg0 Pollution & WasteRenewable Energy
ConservationRestoration
Quality of Life / Genuine Wealth / Genuine Progress
Corporate Sustainability 3-Legged Stool
Sustainability = Sustainable Development (SD)= Environmental, Social, Governance (ESG)
= Corporate Social Responsibility (CSR)= Corporate Responsibility (CR) = Green= Triple Bottom Line (TBL) = 3Es = 3Ps
Economy - ProfitsGrowth, Jobs,
TaxesProductsServices
Equity - People Employees
Community / Culture World
Environment - PlanetEco-efficiencies
Eco-effectiveness
Smart Business 3-Legged Stool
Asset Management
Economic / FinancialCapital
Built / ManufacturedCapital
NaturalCapital
Human CapitalSocial Capital
Sustainable Value Creation
5-Stage Sustainability Journey
5. Purpose/Passion Values-driven founder / CEO
2. Compliance Regulatory enforcement
1. Pre-Compliance
3. Beyond ComplianceSave on eco-efficienciesAvoid PR crisis Avoid threat of new regulations
4. Integrated Strategy Enhanced organizational value
The 3 R’s of Justifying Sustainability
RISKS
RESPONSIBILITIES
REWARDS
BUSINESS CASE
+
+
Based on Alan AtKisson, The IRIS Agreement, p. 127
Risks to Financial and Natural Capitals:Big-5 Sustainability Storm Fronts
Poverty and Social Injustice
Species Extinction and Overharvesting
Food and Water Crises
Waste, Toxicity,
and Health
The 3 R’s of Justifying Sustainability
RISKS
RESPONSIBILITIES
REWARDS
BUSINESS CASE
+
+
Based on Alan AtKisson, The IRIS Agreement, p. 127
Risks to Financial and Social Capitals:Stakeholders’ Rising Expectations
Waste, Toxicity, and Health
Poverty and Social Injustice
Species Extinction and Overharvesting
Food and Water Crises
Employees
Customers
Media Economists
(Scientists)
(NGOs)
Competitors
Markets
Governments Insurers
The Public Investors
BanksRisks to Reputation re Corporate Responsibilities
Social license
to operate
The 3 R’s of Justifying Sustainability
RISKS
RESPONSIBILITIES
REWARDS
BUSINESS CASE
+
+
Based on Alan AtKisson, The IRIS Agreement, p. 127
One More Goal … or an Enabling Strategy?
Innovation
Speed to market
New markets
Talent wars
Productivity
Motivation
Brand image
Managing risks
Compliance
Supply security
Profit
Share price
Growth
Revenue
Customer care
Expense savings
Competition
Market share
Leadership
Governance
RELEVANC
E
The 3 R’s of Justifying Sustainability
RISKS
RESPONSIBILITIES
REWARDS
BUSINESS CASE
+
+Large
Companies:At least 38%more profit
SME Companies:At least 66%more profit
Potential SME Profit Increase
… yielding a profit increase of +66%
-1%
-2%
+6%
-10%
+5%
-5%
REPUTATION
• Reduced recruiting costs
• Reduced attrition costs
• Increased employee productivity
• Increased revenue / market share
• Eco-efficiencies: savings in energy/carbon, water, materials, waste handling
• Lower insurance & borrowing costs
Usual
focus
3M Eco-Efficiency Savings
Pollution Prevention Pays (3P)
Up-front waste prevention: Product reformulation, process modification, equipment redesign, and recycling and reuse
“Fourth P”—People. Employee suggestion program generated
$1.4B in first-year savings through 8,100 voluntary projects over 35 years (1975-2010)
http://solutions.3m.com/wps/portal/3M/en_US/3M-Sustainability/Global/Environment/3P/
Employees Are Key to Eco-Efficiencies
Community Centre Conservation Challenge (CCCC)8 Community Centres; June – August 2009Annual verified energy savings of $90,000
“Low cost / No cost” employee engagement approach• Classy “no pizza boxes” luncheon to launch the challenge• Trained maintenance staff and programs facilitators• Engaged staff in inventory of plugs and savings ideas• Presented winning team leaders with trophies at Council• Classy thank-you closing luncheon for all participants• Results included in City’s Leisure GuideErnie Davies and Suzanne Elston, Oshawa Environment and Energy Mgmt Services
Presentation to the Durham Region Roundtable on Climate Change, June 2010
The 3 R’s of Justifying Sustainability
RISKS
RESPONSIBILITIES
REWARDS
BUSINESS CASE
+
+
Climate Change &
Energy Crises
Employees
Customers Economists
(Scientists)(NGOs)
Governments
Insurers
Investors
At least 38% to 66% more Profit
The New Economy
• New ownership models: employees, customers, co-ops, social venture funds, government funding
• New company purposes: “Social enterprises,” “B Corps,” “Hybrid organizations,” “Flexible purpose corporations” (California Bill SB 201, Corporate Flexibility Act, Feb. 2011)
• Responsible consumption / thrift vs. over-consumption• Low / No-growth model vs. “grow or die” model
• Services vs. products• “Dematerialization” vs. physical goods, processes, or travel
using “virtual” alternatives like videoconferencing or online shopping”
• Low-carbon economy vs. fossil fuel-based economy• Local supply chains vs. global supply chains
In Summary …
Sustainability is smart business
Important stakeholders’ expectations are rising
New market forces & risks are in play
Relevant to existing organizational priorities
Can protect & enhance organizational values
Many willing, helpful partners
Opportunity for leadership … by example
The Next Sustainability Wave: Building Buy-in and the Busine$$ Ca$e
Bob Willard [email protected] www.sustainabilityadvantage.com
Transitioning to GreenThought Leader
Webinar Series #2
April 14, 2011
We thank you for participating with us today!
Bob Willard: [email protected] [email protected]
Jeana Wirtenberg, CEO: [email protected]
Linda Morris Kelley, Host: [email protected]
www.TransitioningToGreen.com
