Strive Toward Sustainability Program

Introductory Workshop

Presented to Southeast Asian Economic Empowerment Cohort©2011 Sustainable Business Council

Program Developers Susan Anderson, MBA in Finance and Decision Science, BA in Accounting, owner of

BalanceTech, LLC, university instructor, SBC cofounder and former SBC board President.

Kaia Peterson, MBA, worked for a number of environmental non-profits and as a sustainable business consultant, currently a senior officer with Montana Community Development Corporation, former SBC board president.

Lisa Swallow, CPA CMA, MBA, university instructor, SBC board member, author of, "Green Business Practices for Dummies" and "Sustainable Business - Management".

Dr. John Anderson, Ph.D. in Computer and Information Science, B.S. in Electrical Engineering, owner of BalanceTech, LLC, a software development company specializing in decision management software and consulting.

Genevieve King, former executive director of the SBC, entrepreneur in the sustainability field with a focus on early childhood education programs.

Drew Little, Education, Outreach, and Volunteer Coordinator for the SBC, BA with High Honors in Environmental Studies with a focus on Sustainable Business Management.

Outline for Workshop1. Introduction2. What is sustainability? 3. Business case for

sustainability 4. Components of a

sustainable business5. Assessment of your

business or entity

6. Steps to become more sustainable

7. Initial prioritization and commitment to change

8. Overcoming barriers and creating a plan

What is Sustainability?

Sustain: To supply with food and drink, or the

necessaries of life (American College Dictionary, 1952)

Sustainability: Meeting the needs of the present without

compromising the ability of future generations to meet their own needs (BrundtlandCommission, 1987)

A Sustainable System

Living Systems

RegenerationDecay

Modified from figure in Innovating Our Way to the Next Industrial Revolution by Peter Senge and Goran Carstedt, MIT Sloan Management Review, Winter 2001.

Uses renewable resources

Reuses “waste”

An Unsustainable System

Living SystemsProduction Systems

Human Needs Met

WasteModified from figure in Innovating Our Way to the Next Industrial Revolution by Peter Senge and Goran Carstedt, MIT Sloan Management Review, Winter 2001.

Non-renewable Resources

Renewable Resources

Sustainable Human Systems

Living Systems Production Systems

Human Needs Met

Natural Nutrients

Technical Nutrients

Modified from figure in Innovating Our Way to the Next Industrial Revolution by Peter Senge and Goran Carstedt, MIT Sloan Management Review, Winter 2001.

Non-renewable Resources

Renewable Resources

Why Should Business Care?

Is it the Environmental Imperative? All major ecosystems in the world are threatened

Toxic build-up and dispersion Soil erosion and top soil depletion Water tables dangerously low Dramatic decline in fisheries & coral reefs Forest depletion Loss of biodiversity Climate change

We’re spending the corpus, should be living off of interest!

“Natural Capital”

Is it the Social or Moral Imperative? Global inequity is increasing

Zero/negative economic growth & mounting debt 20% of the world consumes 80% of the world’s resources 30,000 people die every day from poverty related causes Eco refugees – ‘caused’ by globalization

Human health impacts Respiratory problems Toxin poisoning Sick building syndrome

It’s Just Good Business!!The Business Case New revenue potential through innovation Revenue enhancement through brand image

and marketing Cost savings Risk reduction Access to capital Employee recruitment/retention

Revenue Potential Through Innovation Opportunities for the impending green

economy are limitless Clean energy Consumer products New services Green building products

Many early adopter niches going mainstream Solar, organic food, naturopathy, etc.

Revenue Enhancement

Brand image Brand loyalty New customer groups Value congruence

Need to educate customers on green living

Cost Savings Reduces operating costs

Energy Materials Waste Water

Reduces compliance, handling, disposal, liability, and injury costs

Reduces employee absenteeism, health care and hiring costs

Eco-Efficiency

Risk Reduction

Reduces Reliance on non-renewables and scarce resources Reliance on products from unstable regions or

production process Risk of accident/injury to stakeholders & related

lawsuits Risk of environmental damage and related fines Risk of future regulatory costs

Access to Capital

Increasing interest in investment world in socially responsible firms SRI - $2.71 trillion Response to activist

shareholders Banks beginning to use

environmental risk as criteria Resurgence of community

investing

Enhanced Employee Recruitment & Retention Employees look for

Value congruence Meaningful work Healthy workplaces Caring employers Income and benefits to

sustain them Low turnover and engaged

employees benefit both the company and employees

Participant Activity – Business Case and your firm What is the most critical part of the

business case for sustainability for the key stakeholders in your firm? New revenue potential through innovation Revenue enhancement through brand image

and marketing Cost savings Risk reduction Access to capital Employee recruitment/retention

Areas of Focus : A Sustainable Small Business Management Purchasing Energy Transportation Waste Employees Customers Community

Management

Include sustainability in the mission statement Develop policies that encourage sustainability Create organizational structure for

sustainability Top management commitment Employee involvement and training Green/Sustainability Team Sustainability in decision criteria

Use tracking systems

Purchasing

Buy renewable, recycled, non-toxic and efficient Plant-based vs. petroleum Recycled content and recyclable at end of life Organic, natural, biodegradable Energy efficient, water-wise, right-size, high quality

Develop criteria for (and talk with) suppliers Transparency in product content

Buy socially just products Sweat shop free Fair trade

Energy Efficiency Use energy efficient equipment Use practices that conserve energy

Turn off unused lights Use energy saving setting on equipment Turn thermostats down in winter & up in summer Energy efficient production practices

Purchase or produce renewable, alternative or green energy

Purchase green tags or carbon offsets

Transportation Use energy efficient vehicles in company operations Use energy efficient modes of product transportation

Minimize distance product travels Shared use of shipping vehicles and containers

Encourage employee use of energy efficient or alternative transportation Employee incentive programs Carpooling Bus passes Bike racks Locate in a pedestrian friendly area

Waste Reduction

Use practices that minimize waste Paperless office (digitize documents) Duplex copying Production design to reduce scrap

Provide recycling bins and services Encourage reuse or recycling of outputs Minimize use of packaging

Employees

Encourage gender, ethnic and veteran diversity Provide employee benefits package Pay a living wage Provide employee development opportunities Use a communication model that allows

employee input and empowerment Encourage green team participation

Customers Incorporate sustainability in marketing Provide customer benefits to targeted groups

(seniors, veterans, children, et al) Provide opportunities and incentives for customers

to act sustainably Discounts for biking or walking to store Bulk or minimal packaging options On-site product recycling (take back)

Customer education

Community

Make donations to and collaborate with non-profit organizations

Encourage employees to give time to local activities (match or paid time off to volunteer)

Use local products and services when possible Contribute to the local economy

Participant Activity – Assessment of Your Entity

Determine where on the path to sustainability your entity is with regard to the nine components of sustainability just discussed

Let’s discuss your recorded answers on the assessment tool provided

Participant Activity – What did you learn in the assessment? Describe the most

interesting sustainable practice that your firm is doing at present

Sustainability in a Small BusinessWhere to start??

No right or wrong way, but there are 3 basic components to the change process

Laying the groundwork Planning and decision making Implementation

Laying the Groundwork Commitment

Involve owners and management, if not already leading Develop vision, mission and/or sustainability policies

Begin developing organizational structure & culture Green/Sustainability team creation Get informed about basics of sustainability Determine entity’s readiness to change

Survey employees and other stakeholders Initial baseline assessment

Budget for planning, as needed

Planning and Decision Making

SWOT analysis and additional data gathering Choose priority areas and develop initial goals Brainstorm, analyze and select alternatives Anticipate barriers and ways to address Form an implementation plan Develop indicators to measure success

Participant Activity – Steps 1-4 on Planning Worksheet

Initial Commitment of Participants Choose one priority area Look for low hanging fruit Commit to one action

Enthusiasm GeneratingActionableDirectly ControlledLow-Cost

Participant Activity – Addressing Barriers & Creating a Plan Brainstorm of barriers Means to address barriers List steps to accomplish Assign responsibility Set target dates Select indicators of success

Implementation Assign responsibility Systems modifications

Remove barriers Create prompts & incentives Insure proper information flows Change/develop policies and procedures

Train employees and others affected Communicate commitment Monitor, measure and celebrate change

Final WordsThis is a journey not a destination!!!!

Resource: “Green Business Practices

for Dummies”

Network/support: sbcmontana.org