Session 1 CSR and Sustainable Business 2011 PV GS

8/7/2019 Session 1 CSR and Sustainable Business 2011 PV GS

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BONG, llc Copyright 2011

Sustainable Business LeadersFebruary 25, 2011

B.O.N.G. llc a division of Alonzo Technology Solutions

Center for Business and TechnologyJohnson County Community College

Su s t a i n a b i l i t y i s I n n ova t i o n Cost Saving s D i f f e r en t i a t o r Ta l e n t A t t r a c t o r Man a ge r i a l Qua l i t y Co rp o r a t e S t r a t eg y

Su s t a i n a b i l i t y i s I n n ova t i o n Cost Saving s D i f f e r en t i a t o r Ta l e n t A t t r a c t o r Man a ge r i a l Qua l i t y Co rp o r a t e S t r a t eg y

Our approach

Paul Hawken, The Ecology of Commerce, 1993

Content Copyrighted B.O.N.G. LLC 2011

JC ALONZOPresident, Blue Ocean NOW Group

Veteran business coachDevelop and strengthen executives strategy skill setsFocus on strategies and initiative executionCertified Business Coach, Six Disciplines Methodologies

Corporate Management P&L responsibility for revenues of $50 M per yearManaged several hundred direct report personnel

Community, Political LeaderCo Chair, KCMO EMC 8 yearsAppointments to several commissions, boards and steering committees Political activist experience in successful issue campaigns

Entrepreneur

Original class Co authored with 25 year practicing LEED AP certified architect



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SBLS CERTIFICATE

Business Leader CertificateIssued and maintained by the Center for Business and Technology

blueoceanNOWgroup10:09 AM Content Copyrighted B.O.N.G. LLC 2011

SERIES GOAL

Develop and write the initial steps of an environmental sustainability plan that meets the strategy requirements of the business.

Review the environmental landscape.Recognize the environmental issues most important to similar business sectorsSelect a specific environmental factor for business sectorDetermine tools to measure factorDevelop the plan for environmental sustainabilityTie or map the plan into business strategy

Student Introductions

"Inaction on climate is not an option.John W. Rowe,Exelon Chairman and CEO

Exelon, one of the largest U.S. electric utilities, won't renew its U.S. Chamber of Commerce membership in a dispute over the Chamber's position on global warming.

What brings you here today?

1. What economic sector are you in?2. What size business? # or $3. Does your company have environmental

policy or practices in place?4. Do you have a favorite environmental group?

Are you an active member?5. What prompted you to sign up for this

course? 6. What is the favorite thing you own?

1. What economic sector are you in?2. What size business? # or $3. Does your company have environmental

policy or practices in place?4. Do you have a favorite environmental group?

Are you an active member?5. What prompted you to sign up for this

course? 6. What is the favorite thing you own?

10:09 AM


Why does sustainability planning makes

good

business

sense?

New Trends and Expectations

1. 2. 3.

10:09 AM

1. Improves customer value and profitability

2. Provides better access to capital

3. Drives innovationContent Copyrighted B.O.N.G. LLC 2011


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The most important thing about Spaceship Earth an instruction book didn't come with it.

R. Buckminster Fuller


Managing business amid 360 change

Whole System AwarenessA very delicate biosphereClimate Change OpportunityPower of Design

Applied Social ScienceSocial Justice and TerrorismGood GovernanceWater CrisesEnergy Security

Bio Sciences and EngineeringGreen ChemistryBio system DeclineResource DepletionFructosificationof OUR FoodUnintended Side EffectsFrom Can to Should

Flying The Digital CloudDigitally Augmented LifeVirtual CommunitiesIntelligence in Data Mining

Shifting Economic DominanceEvolving VulnerabilitiesAnd New Strengths

Entering the 6 th wave10:09 AM


Definition of Terms

Sustainability environmental & business

Sustainable DevelopmentGreen and GreenwashCorporate Social

Responsibility (CSR)Environmental, Social and

Governance (ESG) PoliciesTriple Bottom LineEcological FootprintCarbon Footprint AnalysisByproduct SynergyCradle to CradleNegawattResource Productivity

Some Jargon10:09 AM



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John Muir

In ecosystems

In social relationships

In business planning and economic systems



Take action and you will

Serve the Green ConsumerThey are not going away: more shelf space, more mind space, more profit

Save money nowMore efficient fleet, facilities, process and IT = great ROI and more profit

Save money permanentlyCapital improvements including energy efficiency measures and renewable energy systems

Reduce RiskFree your company from volatility of oil prices

Anticipate and embrace the march of regulation

Get the best peopleThe battle for the best talent will get worse. The next generation equates financial success and CSR

Drive InnovationConstraints are the mother of invention

Build Managerial IntelligenceBuild the companys capacity to manage complexity and improve overall performance

10:09 AM Content Copyrighted B.O.N.G. LLC 2011


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Paul HawkenAmory and Hunter Lovins

Natural Capitalism: The Next Industrial Revolution

William McDonoughCradle To Cradle: Remaking the Way We Make Things

A third industrial revolution, one with the potential to transform how goods are made, cities are built, and literally everything is broken down and reused.

The Four Principles of

Natural Capitalism

Sustainability andBusiness Opportunity

10:09 AM

Natural Capital:Natural resources and the ecological

systems that provide vital lifesupport services


Amory Lovins

Winning the Oil Endgame: Innovation for Profits, Jobs, and Security

CEO of the Rocky Mountain Institute

Time Magazines Hero for the Planet

DesignIntelligenceTop 5 Sustainability Influencers, 2010

10:09 AM

Today we have a temporary aberration called industrial capitalism

We are inadvertently liquidating our two most important sources of capital:

The natural world

Properly functioning societies

No sensible capitalist would do that.

Sustainability andBusiness Opportunity


1. Peak Corn

2. Peak Oil

3. Peak Dirt

4. Peak Gas

5. Peak Water

6. Peak Electricity

7. Peak Rice

8. Peak Metal

Peak Everything:8 Things We Are Running Low On And Why

10:09 AM



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10 Top Environmental Issues

1. Climate Change2. Energy3. Water4. Biodiversity and Land Use5. Chemicals, Toxics, and Heavy

Metals6. Air Pollution7. Waste Management8. Ozone Layer Depletion9. Oceans and Fisheries10.Deforestation

10:09 AM


HOW WOULD YOUR CAREER IMPROVE IF YOU BECAME A CHAMPION OF SUSTAINABILITY?

WHAT ARE THE BIG CHANGES OCCURRING IN YOUR COMPANY AND INDUSTRY RELATING TO ALL THIS?

DOES YOUR COMPANY HAVE ENOUGH ACTIONABLE INFORMATION TO DRIVE CHANGE?


Break

Please take a moment to locate this planets

emergency

exits...

10 minutes



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A few examples


General Electric

Some companies have put sustainability programs on the chopping block during the recession, but a few influential organizations are actually expanding their sustainability initiatives, and using them as a tool for innovation.

Their focus is not on whether green should be a part of their strategy during a downturn, but on how green will grow their business and enhance their corporate culture.

Global businessleading global solutions



Walmart Sustainable Value Networks



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DuPont believes the scientific understanding of

climate

change

is

sufficient

to compel prompt, effective actions to limit emissions of greenhouse gases.

In the late 1980s and 1990s, we realized that mere compliance was not sufficient, and that our stakeholders expected more from us. So we went beyond regulatory requirements made voluntary commitments to reduce the environmental footprint of our facilities.

www.dupont.comDuPont Installs its Largest Solar Panel Array to Generate Energy Needs at Research Facility



Every day, UPS employees find new ways to act responsibly for the benefit of the company and the communities where we work. The new UPS Sustainability Report tells the story of our impact today and the programs we have in place to

improve our performance in the future.


UPS SustainabilityContent Copyrighted B.O.N.G. LLC 2011



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Muhtar Kent, Coca Cola Company CEO

Coca Cola is involved in several projects to become more sustainable. These projects have cost hundreds of millions of dollars in research, but are worth it, according to Kent.

Portraits in Sustainable Business Leadership


Ray Anderson, CEO of Interface Carpet: TED talk during the next break. Mount Sustainability toward Mission Zero



Sierra Nevada BreweryThe brewery has almost taken itself

off the grid to ensure survival and protect itself against power loss.




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BONG, llc Copyright 2011 1

An overview


CARBON CAP AND TRADE CARBON TAX

10:09 AM

Environmentalregulation

WHICH IS BETTER FOR BUSINESS AND THE ENVIRONMENT?


CleanTechBusinessLeveraging rapid

changes now in playDeveloping

services and products for the green consumer

Engaged in solutions to todays environmental challenges

Green BrandingTelling your green

storyEstablishing

community connections

New marketsNew trends and

expectations



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CleanTechBusinessLeveraging rapid changes now in play

Developing services and products for the green consumer

Engaged in solutions to todays environmental challenges

Green BrandingTelling your green storyEstablishing community connections

New marketsNew trends and

expectations10:09 AM


Cleantech$

10:09 AM


Cleantech could be the largest area for venture capital investment within

five years if not sooner.

Mark Heesen, President of the National Venture Capital Association

Venture Capital$

Energy Efficiency

Building HVACLighting

Envelope

ThemalStorage

HygricCapacity

ProcessEnergy

Batteries Kinetic

Infrastructure

Generation

Material

ManagementWaste Management

Green IT Renewable Energy Bio Mass

Hydro

Tidal

Bio Fuel

Solar

Wind

Geothermal

Methane Capture

TransportEnvironmental Management

InfrastructureManufacturing

Education

10:09 AM



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CLEARLY BUSINESSES NEED TO

FORM A COMPREHENSIVE RESPONSEWHO HOLDS THE COMPASS?

10:09 AM

HOW SUCCESSFUL CAN A COMPANY BE IF THEY DONT HAVE EXECUTIVE FOCUS?

I.E. HOW CRITICAL IS A CORPORATE STRATEGIC PLAN?

HOW EFFECTIVE IS FROM THE BOTTOM UP?


Break

I think they are on decline in the biggest oil fields in the world today and I know what's it like once you turn the corner and start declining, it's a tread mill that you just can't keep up with.

T. Boone Pickens

10 minutes10:09 AM


10:09 AM B.O.N.G. llc


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business that embodies transparency and ethical behavior, respect for stakeholder groups, and a commitment to add economic, social and environmental value.

U.N. Global Compact/SustainAbility


PROPONENTS

Business success will depend upon a companys ability to adapt to the challenge of global climate change and its related issues of energy, forests, water and biodiversity. [BofA]Corporations benefit in multiple ways by operating with a perspective broader and longer than their own immediate, short term profits. Sustainability reports can be an empowering source of

information

for

consumers,

employees, investors, researchers and communities.

CRITICS

CSR distracts from the fundamental economic role of businesses.It is nothing more than superficial window dressing.It is an attempt to pre empt the role of governments as a watchdog over powerful multinational corporations.Whos Sustainability Report should we believe?

$


Corporate Social Responsibility

Motivations and Strategies

Voluntary

Market enforcement

Risk Mgmt

Quality Mgmt

Brand Value

$10:09 AM



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Corporate Social Responsibility

How do you explain the growing involvement of business in corporate social responsibility activities?

Value to business?$

Companies with strong CSR programs distinguish themselves in the marketplace, establish strong bonds with clients, customers, employees, and policy makers, and provide unique opportunities for leadership development.

CSR might remain difficult to quantify, but its value could not be more tangible

10:09 AMContent Copyrighted B.O.N.G. LLC 2011

The Global Reporting Initiative (GRI) is a common framework for sustainability reporting.

The GRI vision is that reporting on economic, environmental and social performance by all organizations becomes as routine and comparable as financial reporting.

An international network of thousands from business, civil society, labor and professional institutions create the content of the Reporting Framework in a consensus seeking process.

Global Reporting Initiative$a.Causes (Cause-related marketing/strategic philanthropy)b. Non-Government al Organizations (NGOs)c. GovernmentsCompetitors a.Causes (Cause-related marketing/strategic philanthropy)b. Non-Government al Organizations (NGOs)c. GovernmentsCompetitors

10:09 AM

Corporate Social

Responsibility


Dow Jones Sustainability Indexes tracking the financial performance of the leading sustainability

driven companies worldwide

NASDAQ OMX GRDGlobal sustainability 50 Index

CRD Analytics

Breaking News!

Socially Responsible Investing$

10:09 AM

Corporate Social

Responsibility



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Key Factors Behind Robust Growth of Socially Responsible Investing

10:09 AM

Demand for social investing products and servicesInstitutional and individual investors (+26% since 2005)

Socially concerned high net worth clients, (+78%) Individuals seeking SRI options in their retirement and college savings plans and Mission driven institutions such as foundations, endowments, labor unions, and faith based investors

New products and fund stylesExchange Traded Funds (ETFs) and alternative investment funds such as social venture capital and double and triple bottom line private equity

Climate Change RiskInstitutional Investors Supporting Shareholder SRI Resolutions (+57%)Divestment of Sudanese portfoliosExpanding Community Investing

$


Greenwashing is a danger to your business

The Sins of Greenwashing1. Sin of the Hidden

Trade Off 2. Sin of No Proof 3. Sin of Vagueness4. Sin of Irrelevance 5. Sin of Lesser of Two

Evils6. Sin of Fibbing

Beware Greenwashing an informedGreen Consumer

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$


Consumers are the most important stakeholder. They now have the data to make more informed

decisions

Paradox:While 84% [of consumers surveyed] said CSR would influence buying decisions, only 5% consistently buy brands on ethical grounds.The Business Communicator/MORI Research

A more perfect marketplaceCSR$

LOHAS is an acronym that stands for Lifestyles of Health and Sustainability and describes a $226.8 billion (sic) U.S. marketplace for goods and services that appeal to consumers who value health, the environment, social

justice, personal development and sustainable living. LOHAS Journal Online

10:09 AMContent Copyrighted B.O.N.G. LLC 2011


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Finding the best

and the brightest Green Collars

Bright Green Talent$


Analyst Sustainability, PortlandBuilding Science Leader Consultant Business Sustainability , SeattleDirector of Green Sustainability DallasDirector of Sustainability Energy and Sustainability Project Coordinator Energy Program Director Manager Environmental SustainabilityResource Efficiency ManagerFort RileySustainability Consultant Sustainability Consultant Energy Management Sustainability Integration Director Sustainability (LEED) Manager,Sustainability Program Director Senior Sustainability Manager , ChinaClimate Change Manager , London

Expertise external communicationsResearchOperationsinternal communicationsBusiness mind with the environmentalist heart

Successdemonstrate cost reduction or brand enhancement

Green Dream Jobs @ $65,000 to $120,000

$1.Bright Green Talent2.Business for Social Responsibility3.CareerBuilders goinggreenjobs.com4.Clean Edge for Clean Tech jobs5.The Chronicle of Philanthropy -Career Network incompany gift, charity and fund raising programs6.EcoEmploy.com7.Environmentalcareer.com8.Environmental Career Opportunities inconservation, education, policy, science &engineeri ng and more9.Ethical Jobs Jobsand resumes in ethical fields -Charities, Corporate Social Responsibility, Family &Children and other categories10.Great Green Careers lists jobs in renewableenergy, the environment and sustainable building11.GreenBiz. com Jobs12.Green Career Centrala membership website thatprovides expert career coaching and advice.Thereis a green job board that is open to everyone assource of green job and career openings.13.Green Dream Jobs at Sustainablebusi ness.comfulfill society's needs while contributing to the well-being of all earth's inhabitants14.GreenEnergyJobsOnline.com15.Greenjobs" One-stop" site where recruiters andjob seekers can interact16.GreenJobSearch.org17.Idealist.orgA place to find dream job in thenonprofit sector 18.SustainableBusiness.com19.Treehugger 20.USGBC Career Center Content Copyrighted B.O.N.G. LLC 2011

DO YOU SEE A GREEN TECH BUSINESS OPPORTUNITY FOR YOUR COMPANY?

DO YOU FEEL PRESSURE IN YOUR LIFE OR IN YOUR COMPANY FOR GREEN DREAM JOBS?



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Reading:Natural Capitalism by Hawkens, Lovinsand Lovins http://www.natcap.org/Green Biz Business voice of the green economy: Green BizAdam Werbachs death of environmentalism, 2005

Course Website References: Example List of Sustainable BusinessesGlossary of TermsExample Sustainable Business Plans

Assignments:1. Calculate your familys ecological footprint at http://www.myfootprint.org/2. Briefly profile a company providing sustainable business leadership (max one

page). Priority recommendation 1) local business, 2) regional, 3) national3. Identify the primary issues of a sustainable business plan for your industry

(bullet point list)Due Date:

Email to [email protected] on or before March 4, 2011.


Books Noted:Hawken, Paul (1993). The Ecology of Commerce. Harper Business.Hawken, Paul; Amory Lovins, Hunter Lovins (1999). Natural Capitalism: Creating the Next Industrial Revolution. Rocky Mountain Institute.Hargroves, K. and Smith M.H. (2005) The Natural Advantage of Nations: Business Opportunities, Innovation and Governance in the 21st Century McDonough, William; Braungart, Michael (2002). Cradle to Cradle: Remaking the Way We Make Things, North Point Press.Amory Lovins, Amory (2005). Winning the Oil Endgame: Innovation for Profits, Jobs, and Security , Rocky Mountain Institute.Heinberg, Richard (2007). Peak Everything: Waking Up to the Century of Declines.Esty, Daniel C; Winston, Andrew S. (2006). Green To Gold , Yale University Press

Course Website References: List of Sustainable Businesses (Not in order of discussion)

GE, Walmart, DuPont, UPS, Coca Cola Company, Interface Carpet, Sierra Nevada Brewery, Exelon, IBM, KCPL,


SESSION ONE

Intro to the big picture, definitions, jargon, etc.Global business leadershipNew Expectations for Sustainable Business: clean tech, etc.Corporate Social Responsibility (CSR) overview

SESSION TWO

CSR Balanced Scorecard (BSC) discussion and the Sustainable Business Innovation Process

Embrace ComplianceSustainable OptionsDesign SustainablyDevelop New Models

Question Status Quo Again


Documents

Session 1 CSR and Sustainable Business 2011 PV GS