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Green Services Opportunities. Will O’Brien June 2011. Topics. Background Definitions & Models Sustainability: Embracers Seize the Advantage Sustainability is The Key Driver of Innovation Market Trends and Green Service/Career Opportunities New (Green) Service Development Process - PowerPoint PPT Presentation
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Green Services Opportunities
Will O’BrienJune 2011
Background
Definitions & Models
Sustainability: Embracers Seize the Advantage
Sustainability is The Key Driver of Innovation
Market Trends and Green Service/Career Opportunities New (Green) Service Development Process
Learn More…
Topics
Background MBA, University of Albany Juris Doctor, Suffolk University Law School @40 years in Management and Consulting Teaching since 2002 Executive-in-Residence, Clark University Lecturer, Johns Hopkins University Director, Worcester Sustainable Business Leader Program Research Interests:
◦ Business and Environmental Sustainability◦ Change Management◦ Entrepreneurship◦ Project Management
Websites: www.greenprof.org www.sustainablebusinessleader.org/
"What we take for granted may not be here for our children." - Al Gore
Sustainable Development
Sustainable development seeks to meet the needs and aspirations of the present without compromising the ability to meet those of the future. Far from requiring the cessation of economic growth, it recognizes that the problems of poverty and underdevelopment cannot be solved unless we have a new era of growth in which the developing countries play a large role and reap large benefits.
Our Common Future, 1987The Brundtland Commission(UN World Commission on Environment &
Development)
Carbon Footprint
Source: New Zealand Business Council for Sustainable Development
Environmental Footprint
Source: “Measuring Environmental Footprint: A Financial Services Industry Case Study”, 2008, UNC
An environmental footprint is a measure of the amount of resources consumed and the amount of pollution; e.g., green house gas and waste created by an entity and by the firms that serve the entity, usually summarized by the equivalent are of land needed to assimilate these impacts.
Triple Bottom Line
The triple bottom line (abbreviated as "TBL" or "3BL", and also known as "people, planet, profit" or "the three pillars"[1]) captures an expanded spectrum of values and criteria for measuring organizational (and societal) success: economic, ecological and social. (Wikipedia)
Boston Consulting Group & MIT Sloan Management Review conduct survey about corporate sustainability - 2010
2009: 25% of respondents increasing commitment to sustainability
2010: 59% of respondents increasing commitment to sustainability
Growing enthusiasm for sustainability-driven management
Sustainability: The Embracers Seize Advantage!
Waste reduction
Energy efficiency
Example: Johnson & Johnson: spent $187 million in energy reduction projects. Expect IRR of 19%, approximate 247,000 megawatts of energy per year.
Top Sustainability Efforts
Survey discovers two groups of businesses:
Embracers = Leaders in sustainability◦ Sustainability ALREADY at core of business
Laggards = Cautious adopters◦ Moving towards a sustainable core
Embracers vs. Laggards
Large global or regional companies (workforce > 10,000)
Found in resource-intensive industries
Can be either service sector or product industries
Product Industries more likely to be embracers
Who are Sustainability “Embracers?”
Hong /Shanghai Bank Corporation (HSBC):
www.hsbc.com/1/2/sustainability
Bank of America:
http://environment.bankofamerica.com/commitment/our-commitment.html
Financial Services Companies
Sustainability strategies are necessary to be competitive◦ 70% believe they are outperforming competitors
Links must be made between sustainability and profitability. Move beyond “cost cutting” and “risk management.” ◦ i.e.. focus on increased margins, greater market share,
more innovation/blue ocean creation, access to new markets, etc.
Make sustainability an insider activity
The Embracer’s Philosophy
1. Move early — even if information is incomplete
2. Balance broad, long-term vision with projects offering concrete, near-term “wins”
3. Drive sustainability top-down and bottom-up
4. Aggressively de-silo sustainability — integrating it throughout company operations.
5. Measure everything (and if ways of measuring something don’t exist, start inventing them).
6. Value intangible benefits seriously.
7. Try to be authentic and transparent — internally and externally.
Seven Practices of Embracers:
Sustainability not as easy as it appears
How to choose metrics?
How to quantify the effects of sustainability strategies on operations?
On brand reputation?
On company name?
On consumer offerings?
Challenges for Embracers:
Both embracers and cautious adopters see the benefits of strategies such as improved resource efficiency and waste management.
Both recognize the brand-building benefits of developing a reputation for being sustainability driven.
Embracers are more aggressive in sustainability spending, but cautious adopters are increasing their commitments at a faster rate.
Embracers vs. Laggards
Making or Breaking a Brand Customers a HUGE
driver of sustainability efforts.
Sustainability can help build brand image.
Can hurt it too.
Shell fell from 5th to seventh in 2010, possibly as a result of the BP oil spill.
Why go Green?Five Mega-Trends:
1. Public policy
2. Investment
3. Employees
4. Customers
5. Accountability
Sustainability Drives Innovation
Sustainability Drives Innovation Stages:
#1 Viewing compliance as an opportunity#2 Making value chains sustainable#3 Designing sustainable products and
services#4 Creating “next-practice “platforms
“ Why Sustainability is Now a Key Driver of Innovation”, Harvard Business Review, 2009
Market Trends Green Service /Career Opportunities
Greater focus on energy costs • Renewable Energy Consulting• Energy Management Consulting• Buildings: Design, Weatherization• Carbon Trading
Increased focus on healthier living • Organic Agriculture• Toxic Detection, Reduction & Removal
Growing consumer awareness re: environmental sustainability
• Business Certification • Educational Programs• Marketing• Natural Tourism• Carbon Footprint Labeling• Waste Management Services
Risk mitigation for investors re: sustainability
• Sustainability Reporting• Sustainability Report Auditing
Mounting pressure from governments, competitors and other stakeholders on businesses, colleges & universities
• Environmental Law• Environmental Compliance & Planning• Sustainability Consulting
Market Trends & Opportunities
Carbon Footprint Labeling Jan. 23, 2007 Tesco, the largest supermarket chain in
Britain, has announced that it will begin labeling all 70,000 products on its shelves with the amount of carbon generated from the production, transport and consumption of those items.
Tesco in UKwww.tesco.com/greenerliving/greener_tesco/faqs/qa_carbon_footprint_and_labelling.page
http://www.terrapass.com/blog/posts/british-superma
Wal-Mart: Process for Greening Supply Chain
http://greenedgellc.com/posts/walmarts-process-for-greening-its-supply-chain
Strategic Sustainability Consulting www.sustainabilityconsulting.com/walmart
Carbon Footprint Labeling
Institute for Green Business Certification www.gbcertified.com/11-Home.asp
Green Business Bureau www.gbb.org/
Sustainable Business Leader Program (SBLP) www.sustainablebusinessleader.org
Note: looking for interns for Worcester SBLP
Business Certification
HP: Energy Solution & Sustainability Management
http://www8.hp.com/us/en/solutions/solutions-detail.html?compURI=tcm:245-300963
Sustainability Consulting Services including energy audits, report audits:
- Deloitte - Accenture - KPMG - PWC - GreenerU, Inc.
Environmental Resources Management (ERM) http://erm.com/
Sustainability Consulting
New Service Development Process
Learn more….. Clark GSOM courses:
◦ Corporate Strategy & Sustainability (tbd)◦ Eco-entrepreneurship (tbd)◦ Energy Management – SP12◦ Finance & Sustainability (tbd)◦ Green Business Management (UG)– SP12◦ Green Marketing – FA11◦ Green Supply Chain Management (tbd)◦ Sustainability Consulting Projects – FA11
Net Impact @Clark: Kate Hanley, Brad McNamara Sustainability Leaders Speaker Series – AY2011-12 Websites:
◦ www.greenprof.org ◦ www.sustainablebusinessleader.org