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From Paul Hawken’s Commencement Address at Portland State 2010. “…If you look at the science about what is happening on earth and aren’t pessimistic, you don’t understand data. - PowerPoint PPT Presentation
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From Paul Hawken’s Commencement Address at Portland State 2010
“…If you look at the science about what is happening on earth and aren’t pessimistic, you don’t understand data.
…But if you meet the people who are working to restore this earth and create a new business model, and you aren’t optimistic, you haven’t got a pulse.”
Sustainable Capitalism: The Triple Bottom Line
Lisa Swallow, CPA CMA MSPresented to Women’s Empowerment
Project April 2012
What is Sustainability?
“Meeting the needs of the present without compromising the ability of future generations to meet their needs”
--1987 UN Brundlandt Report
Sustainability: The possibility that we all flourish forever.
-- John Ehrenfeld, International Society for Industrial Ecology
Is the Environmental Imperative Nudging Business Towards Sustainability?
All major ecosystems in the world are threatened
Toxic build-up and dispersion Water tables dangerously low Dramatic decline in fisheries & coral reefs Forest depletion Loss of biodiversity Climate change
“Natural Capital”We’re spending the corpus, should be living off of interest!
Life Supporting Resourcesdeclining
Consumption of Life Supporting Resources
rising
What will our transportation systems look like ?How will we globally continue to feed a burgeoning population ?How will health care be administered? What sorts of materials will we use to produce consumer goods ?What role will technology play? How soon will all our buildings be net zero energy ?What will power our world?What will the biodiversity loss really look like?Will there be enough desalinated water for the world?
Shepard GlacierGlacier National Park, MT
USGS Repeat Photography Projecthttp://nrmsc.usgs.gov/repeatphoto/
Blase Reardon photoUSGS2005W. C. Alden photo
USGS Photographic Library1913
Problem with Extreme Business View: Tragedy of Commons
Dilemma – when multiple parties, acting independently and with own self-interest at heart, will ultimately deplete a shared limited resource even when it is clear that it is not in anyone's long-term interest for this to happen
Garrett Hardin 1968
What’s Different aboutNatural Capitalism
What happens to a trust if you live off the interest?What happens if you spend down the corpus?
Natural capitalism recognizes and assigns fair market valueto ecosystem services – valued at $2 trillion per year and no substitutesAnd focuses on product design using biomimicry,
providing services (not product ownership) and increasing efficiency
Triple Bottom LinePROFIT
PLANET PEOPLE
Businesses increasingly acknowledging new strategy –
moving from short term thinking to long term vision
Business Case for Sustainability Enhance revenue - Brand imaging/marketing Cutting operating costs
Waste Water Energy Renovate rather than build
Increasing interest in investment world in socially responsible firms SRI - $3 trillion (see Dow Jones Sustainability Index)
Enhanced EE recruiting/retention Risk mitigation/reduction of exposure Reduced costs of capital
Eco-efficiencies
Why is TBL Good for Business? Innovation opportunities for the impending green economy are
limitless Smart grids Distributed energyHydrogen infrastructureWater desalinization and purification New consumer goods Renewable energyEnergy efficiencyGreen building productsNew financial services and marketsAlternative transportation modelsNew manufacturing processes
Consumers are rewarding green businesses Saturation in many traditional markets Fastest growing markets are green
“Green Shoppers 2009”
Report conducted by Deloitte & Touche
3 Driving Trends Behind Thriving Market for Green Goods/ServicesNumber One: Rise of the “conscious
consumer”19%
15%
25%
24%
17%
LOHASNaturalitesDriftersConventionalsUnconcerned
Source: Natural Marketing Institute “NMI’s 23009 Consumer Segmentation Model”
True BluesSproutsGrousersBasic Browns
What else?Number Two: Availability of information/transparencyVery easy to access info on companies’ behavior and
product attributes based on interest – what are “green products”? Made and/or sold locally Recycled and/or recyclable Indigenous/artesian crafted Fair trade Toxin free Organic Sweatshop free Produced with green energy
Study after study showing increasing blending of values and purchasing
And if That’s Not Compelling Enough
”The Consumer Society” is transforming towards the “Simple Society”
Byproducts of materialist society weighs on us Explosion of debt Migration of jobs overseas Staggering amount of waste created by disposable
lifestyle
All this leads towards more responsible and value driven purchasing.
Consumer interested in authenticity & responsible supply chain practices
3 Recent Reports that Energize the Paradigm Shift
GreenBiz Fourth Annual MIT Sloan Management Review & and
Boston Consulting Group -2011 research report
Greening of Corporate America
2009 Greening Corporate America
Specifics of Green Business
Change product development Look at fastest growing markets Practice corporate social responsibility Craft new partners Establish benchmarks and measure
progress
Product Design with Purpose
Design that
complies with TNS
Green Materials
Sustainable Design
Framework that require mindful design:
• Biomimicry• Cradle to Cradle • Design for the Environment
Biomimicry From Bios (life) + Memesis (to imitate) – Janine
Benyus Product design framework – emulating 3.8
billion years of evolution - species don’t use up their host organism What’s flourishing on the planet today are the
best ideas - those that perform well in context, while economizing on energy and materials
Using Nature’s Best Ideas
Fastest Growing Markets
Organics/local vs. corporate food Green building
2005 - green building accounted for 2% of construction
2008 - 15-20% of new construction Amount equivalent to $50b market
Naturopathy/alternative medicines Early adopters (solar) going mainstream Natural fibers (bamboo, hemp, jute, etc) Sustainable home furnishings Recycled-content paper products
Vast OpportunitiesStu Hart – “Capitalism at the Crossroads”
BoP 1.0 - Large corporations will experience growth solving the world’s problems for the poorest 4 billion people
Saturation in existing markets “Trickle-up opportunity”
Smaller packages, different distribution model Sell service (pest control/house cleaning) Nairobi – buy ‘by the squirt’
“Next Generation BoP Strategies” BoP 2.0 Partner with local entrepreneurs to build
capacity S G Johnson – service and flow model
Enhancing Social Justice in Business
Business concerns: Employee health (down supply chain),
retention/productivity, consumer health, community prosperity
Purchasing policies (Fair Trade, Sweatshop-Free) Many office greening maneuvers (daylighting,
toxin free, etc.) will enhance employees’ worklife)
Address commuting issues Green HR policies
Partnerships Add to Capacity
Many MNCs looking to team up with ecological experts Coca-Cola employing ecologists
to help analyze future projects’ biodiversity impacts
Dow Chemical partnered with TNC to add ecosystem costs/benefits to business model
City of Sao Paulo collaborating with WWF to run drinking water project – analyzing effect of logging, ranching, ag on water quality/wildlife
Andrew Liveris, CEO "This collaboration is designed to help us
innovate new approaches to critical world challenges while
demonstrating that environmental
conservation is not just good for nature - it is good for business”
Establish Benchmarks & Measure Progress
“What gets measured, gets managed”More detail when looking at GRI tomorrowNew metrics emerging – be transparent!
CO2 e per … revenue dollar or employee or per sq. ft. of facility space
% of recycled materials Solid waste measurements Fair trade-certified product % Embodied energy (LCA) Embodied water Social footprint Sustainability Balanced Scorecard
The sustainability crisis cannot be solved by the same kind of education that helped create it.
--David Orr