Collaboration for a sustainable future - WWF Hong Kong · 4/29/2014 · about various aspects of social responsibility of a business organisation • The growing level of knowledge

Collaboration for a

sustainable future

WWF Seminar

29 April 2014

• Today’s challenges

• Latest trend

• Expectation for business

• Global 100

• Sustainability and green

business opportunities

• A strong business case

Agenda

Today’s challenges

© 2014 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International

Cooperative ("KPMG International"), a Swiss entity. All rights reserved. Printed in Hong Kong. 3

Expected the Unexpected: Building business value in a changing world

http://www.kpmg.com/Global/en/IssuesAndInsights/ArticlesPublications/Pages/building-business-value.aspx



Ten interconnected environmental and social megaforces



Environmental challenges in Hong Kong – air pollution

Source: Our future up in the air, William Pesek, The Standard, 8 December 2006

• Pollution is costing Hong Kong about a year in

hospital admissions and lost productivity

• About _____________ deaths a year might be avoided if air quality improves.



Environmental challenges in Hong Kong – waste management

• Within the next few years we will have to identify about 400 hectares of space for

new landfills to serve Hong Kong up to 2030. This is equivalent to:

~one-third of the area of

Hong Kong International Airport

OR

enough land to house

half of Hong Kong's population growth

for the next 10 years Source: http://www.epd.gov.hk/epd/msw/htm_en/ch02/main.htm

Latest trend



Sustainability: The 'Embracers' Seize Advantage. 2011. Retrieved from: http://www.bcg.com/documents/file71538.pdf

Growing trends for organisational commitment to sustainability



How Serious Is Climate Change to Business? 2013. Retrieved from:

https://www.bcgperspectives.com/content/articles/sustainability_process_industries_how_serious_climate_change_business/

How serious is climate change to business?

Expectation for

businesses



Trust in business has fallen dramatically since the early 1980s

Customer expectations and behaviour trends in regard to biodiversity preservation, social responsibility, fair trade. October 14, 2009. Retrieved from:

http://www.cosmethica-grasse.com/assets/files/MGutsatz.pdf



Consumers’ concern in CSR

• Consumers generally become more aware and concerned

about various aspects of social responsibility of a business

organisation

• The growing level of knowledge and access to information

(internet) & magazines that popularise science, marketing,

arts…

• There is an increasing cohesiveness of consumers against

irresponsible business

• Informed consumers are more demanding

• Teaching methods change: children nowadays are not

asked to learn and accept but to deduct and understand

Are consumers really

interested in social

responsibility and is it

really changing

business behaviour?



Trust towards business

CITIZENSHIP (environmental and

social performance)

GOVERNANCE (corporate ethics,

openness and transparency)

as two strong predictors of people’s trust,

respect and admiration for companies in

every nation involved in this study.

Positive correlation between CSR

and financial performance

Building reputation: Here, There and Everywhere-worldwide views on local impact of corporate responsibility. 2009. Retrieved from:

http://cdn.volunteermatch.org/www/corporations/resources/BuildingReputation_BCCCC_09.pdf



“In 2008, the world’s 3,000 largest public

companies were estimated to be causing

US$2.15 trillion of environmental

damage.”

Expect the Unexpected:

Building business value in a changing world



Global sustainability

• A CSR approach is essential to deliver sustainable development on a global level

• Effectively integrate the environmental and social dimensions of sustainability into

the operations

• CSR encourages more accountability in business practice, thus helping to define the

nature of the relationship between corporations and the rest of society

Sustainable

development

at a global level

Economic

Sustainability

Environmental

Sustainability

Social

Sustainability

Global 100



The world’s 100 most sustainable companies 2014

The World’s 100 Most Sustainable Companies, 2014:

Rank Company name Country Headquarters GICS Sector Overall Score

1 Westpac Banking Corporation Australia Financials 76.50%

2 Biogen Idec Inc United States Health Care 75.30%

3 Outotec OYJ Finland Industrials 74.20%

4 Statoil ASA Norway Energy 74.00%

5 Dassault Systemes SA France Information Technology 74.00%

6 Neste Oil OYJ Finland Energy 69.20%

7 Novo Nordisk A/S Denmark Health Care 68.80%

8 Adidas AG Germany Consumer Discretionary 68.00%

9 Umicore SA Belgium Materials 67.80%

10 Schneider Electric SA France Industrials 66.50%

17 Keppel Land Limited Singapore Financials 65.10%

29 StarHub Ltd Singapore Telecommunication Services 61.60%

30 Shinhan Financial Group Co Ltd South Korea Financials 60.80%

31 Hang Seng Bank Ltd Hong Kong Financials 60.40%

34 Samsung Electronics Co Ltd South Korea Information Technology 60.10%

39 City Developments Ltd Singapore Financials 58.60%

58 CapitaLand Limited Singapore Financials 54.30%

65 Daiwa House Industry Co Ltd Japan Financials 54.00%

66 Mitsubishi Heavy Industries Ltd Japan Industrials 53.40%

69 Eisai Co Ltd Japan Health Care 52.80%

74 Nissan Motor Co Ltd Japan Consumer Discretionary 51.60%

77 Ricoh Co Ltd Japan Information Technology 50.50%

82 LG Electronics Inc South Korea Consumer Discretionary 49.90%

Source: Corporate Knight, Global 100. 2014 http://www.forbes.com/sites/jacquelynsmith/2014/01/22/the-worlds-most-sustainable-companies-of-2014/

Sustainability and

green business

opportunities



In 2007, KPMG Global Board endorsed a

commitment to apply our skills to the pursuit of

the Millennium Development Goals (MGDs)

• Support through financial means, volunteering,

and professional pro bono assignments

• Focus on learning and livelihoods

• Creating shared value

Global Development Initiative (GDI)



In April 2008, KPMG International made a

commitment to reduce all member firms’

combined carbon emissions.

• Globally, reduced 29% per full-time equivalent

(FTe) in 2010 compared to 2007 figures

• Work to reduce 15% in 2015 compared to 2010

figure

• Moved part of our operation to the first LEED

certified building in Hong Kong

Global Green Initiative (GGI)

https://portal.aspac.kworld.kpmg.com/cn/Infrastructure/CSR/Event Album/Year 2011/GZ_KPMG Oasis_20110507/KPMG volunteers planting .jpg



• Opened on 17 May 2010

• World’s first long-span public building developed with locally sourced

and environmentally friendly materials

• Partner with 30 partners, including businesses, NGOs and government

agencies

Case study - community centre in Cifeng Township



Green Office – LEED Platinum

• Hysan Place:

the first LEED Platinum mixed use office and vertical mall complex in Greater China

• Committed to a sustainable environment and energy efficiency



Green office – use of materials

• Panels in office and along corridor - 100% recyclable

PET (Polyethylene Terephthalate)

• Bamboo flooring - natural bamboo grown from

sustainable forest

• Carpet - partially recycled material and sources in

neighbouring region

• Linoleum desktop surface - renewable organic materials

which are non-toxic and non-allergenic in nature



Green office – lighting

• Controlled by a combination of photo sensors, motion sensors and timers

• LED spot light instead of halogen spot lights

Saving 76% energy per light

• Partner offices at core

• All glazed partition for offices and

meeting rooms

Allowing more natural light



Green office – printing & plants

• Centralised printing area

• Default duplex printing

• Paperless office – with dual monitors,

screens in meeting rooms, Wi-Fi enabled

tablets

• Sansevieria Trifasciata 虎尾蘭

(also known as Snake Plant)

• A study by NASA found that it is one of

the best plants for improving indoor

air quality by passively absorbing

toxins such as nitrogen oxides (氮氧化物) and formaldehyde (甲醛)



Green office – target

• In 2010, we achieved a significant reduction of 19 percent of carbon emissions per full

time equivalent (FTe) in China against our 2007 baseline

• We targeted to reduce carbon emission by 3% per annum in the next 5 years

A strong business

case



The need to be engaged on world issues

“It is likely that over the next 20 years

businesses will be required to shoulder

more of the financial costs of their

environmental impacts.”

Expect the Unexpected:

Building business value in a changing world



Risks Opportunities



McKinsey Global Survey results

- The business of sustainability

McKinsey Global Survey results: The business of sustainability. 2011.

https://www.mckinseyquarterly.com/The_business_of_sustainability_McKinsey_Global_Survey_results_2867



Why business leaders like you need to be engaged on world issues?

•Reasons for pursuing

sustainability has shifted

from reputation

management to operational

improvements and new

growth opportunities

•the overall high degree of

integration seems to

indicate that companies

have become more

business-like about their

sustainability agenda.



Why business leaders like you need to be engaged on world issues?

• Dow Chemical, invested

less than $2 billion since

1994 to improve its

resource efficiency.

• To date the company has

saved more than $9.8

billion from reduced energy

consumption and water

waste in its manufacturing

processes, even as it

continues to develop

innovations.

• Nestlé, faced with potential

supply constraints, launched

a plan in 2009 that

coordinates activities to

promote sustainable cocoa:

• Producing 12 million

stronger and more

productive plants over the

next ten years.

• Teaching local farmers

efficient and sustainable

methods.

• Purchasing beans from

farms that use

sustainable practices.

• General Electric, placed early bets on

climate change: In 2004, the company

resolved to double its research investments

and sales in clean technology.

• Ecomagination division has been a

tremendous growth engine, with product sales

reaching $18 billion in 2009.

Thank you

Presentation by

Jackie Lee, CSR Manager

[email protected]

© 2014 KPMG, a Hong Kong partnership and a

member firm of the KPMG network of independent

member firms affiliated with KPMG International

Cooperative ("KPMG International"), a Swiss entity.

All rights reserved. Printed in Hong Kong.

The KPMG name, logo and ‘cutting through

complexity’ are registered trademarks or trademarks

of KPMG International Cooperative (KPMG

International).

Documents

Collaboration for a sustainable future - WWF Hong Kong · 4/29/2014 · about various aspects of social responsibility of a business organisation • The growing level of knowledge