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Why Performance Matters Quick Action Planning Heather Paulsen [email protected] (707) 397-0567

Why Performance Matters · Benefits of High Performance (Source: Just Good Business: An Investor’s Guide to B Corps, Yale Center for Business and the Environment, March 2018.) B

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Page 1: Why Performance Matters · Benefits of High Performance (Source: Just Good Business: An Investor’s Guide to B Corps, Yale Center for Business and the Environment, March 2018.) B

Why Performance Matters Quick Act ion Planning

[email protected](707)397-0567

Page 2: Why Performance Matters · Benefits of High Performance (Source: Just Good Business: An Investor’s Guide to B Corps, Yale Center for Business and the Environment, March 2018.) B

Agenda I.  IntroductionII.  TheBCorpframeworkforImpactImprovementIII.  BenefitsofImpactImprovement

i.  Internalii.  External

IV.  ChooseonemeasuretoimproveV.  DevelopyourActionPlanVI.  Dissolveobstacles&buddyup!

Page 3: Why Performance Matters · Benefits of High Performance (Source: Just Good Business: An Investor’s Guide to B Corps, Yale Center for Business and the Environment, March 2018.) B

What is a B Corp?

ACertifiedBCorpisafor-profitcompanythatiscertifiedbythenonprofitBLabtomeetrigorousstandardsofsocialandenvironmentalperformance,accountabilityandtransparency.

Page 4: Why Performance Matters · Benefits of High Performance (Source: Just Good Business: An Investor’s Guide to B Corps, Yale Center for Business and the Environment, March 2018.) B

Who are the B Corps?

2600+ B Corporations 60+ Countries 150 Industries 1 Unifying Goal

Page 5: Why Performance Matters · Benefits of High Performance (Source: Just Good Business: An Investor’s Guide to B Corps, Yale Center for Business and the Environment, March 2018.) B

B Impact Assessment

GOVERNANCE

mission,transparency,accountability

WORKERS

wages, benefits,

employee engagement, training

COMMUNITY IMPACT

charitablegiving,localpurchasing,supplychain

ENVIRONMENTAL IMPACT

renewableenergyuse,lifecycleassessments,organic/non-GMO

Measure What Matters

Page 6: Why Performance Matters · Benefits of High Performance (Source: Just Good Business: An Investor’s Guide to B Corps, Yale Center for Business and the Environment, March 2018.) B

www.petsustainability.org

Aggregate Improvement

• Impact Reporting • Mission Lock (!)

Good Governance

Page 7: Why Performance Matters · Benefits of High Performance (Source: Just Good Business: An Investor’s Guide to B Corps, Yale Center for Business and the Environment, March 2018.) B

Benefits of High Performance Over200sourceswereanalyzed:

90%ofthestudiesshowsoundsustainabilitystandardslowerthecostofcapital

88%ofthestudiesshowsolidsustainabilitypracticesresultinbetteroperational

performance

80%ofthestudiesshowstockpriceispositively

influencedbygoodsustainabilitypractices

(Source:FromtheStockholdertotheStakeholder:HowSustainabilityCanDriveFinancialOutperformance,ArabesquePartners,March2015.)

Page 8: Why Performance Matters · Benefits of High Performance (Source: Just Good Business: An Investor’s Guide to B Corps, Yale Center for Business and the Environment, March 2018.) B

75%ofBCorpshavea9/10brandranking,themostpredictableindicatorofrevenuegrowth

Benefits of High Performance

averagerankamongallcompanies

(Source:TheBusinessCaseforCaring:AHelioAnalysisofCertifiedBCorps,byWilliamDowling,June2018.https://circleup.com/blog/2018/06/01/the-business-case-for-caring-a-helio-analysis-of-certified-b-corps/)

^1 2 3 4 5 6 7 8 9 10

^75%of

Page 9: Why Performance Matters · Benefits of High Performance (Source: Just Good Business: An Investor’s Guide to B Corps, Yale Center for Business and the Environment, March 2018.) B

Benefits of High Performance

(Source:JustGoodBusiness:AnInvestor’sGuidetoBCorps,YaleCenterforBusinessandtheEnvironment,March2018.)

BCorpswere

63% morelikelytosurviveandthriveinthe

economicdownturnof2007-2009

Duringthisdownturn,CertifiedBCorpsexperienceda

50.48% revenuegrowthrate

(Source:TheBCorpHandbook:HowtoUseBusinessasaForceforGood,RyanHoneyman,2014:16.)

Page 10: Why Performance Matters · Benefits of High Performance (Source: Just Good Business: An Investor’s Guide to B Corps, Yale Center for Business and the Environment, March 2018.) B

Example: Impact Reporting

Areas of Focusfor 2018:

• Internal communications

• Teamwork/cooperation

• Seeking input from employees to help make decisions

of pre-tax profits

84%of our employees were “extremely satisfied” or “satisfied” in their jobs

E M PLO YEES

We are proud of the work done by our team over the past two years to improve our social and environmental impacts

COMM U N I TYWe recognize and reward our employees

for the hours they contribute. We achieved 18% employee participation

To support a healthy local economy, our ads feature local businesses every week

We host local product tastings at customer appreciation days

Local companies include: • Bolliver’s Chocolates• Mendocino Mustard• Carol Hall’s Hot Pepper

Jelly Co. • Mendocino Gold• Syd’s Seasonings • and many more…

DONATED TO THE COMMUNITY

EMPLOYEE VOLUNTEER PROGRAM

LOCAL COMPANIES(within 100-Mile Radius)

SOLD IN THE STOREin cash, in-kind, and product donations to over 100 community organizations

THAT’S A 20.4% INCREASE OVER 2016

200+

E N V IR O NMEN T

1,745hours

260hours

WASTE REDUCTIONreduced by

11.7%ENERGY USE

I am extremely pleased to announce that we recertified as a B Corporation in 2017 and our score jumped by 11 points to 97.3! We achieved many improvements in environmental impact with our waste reduction efforts and our improved energy usage after conversion to more efficient lights.

In 2018 we are changing the rest of the lighting in the Fort Bragg store to LED, furthering our energy reduction. We have been working towards Zero Waste certification and plan to achieve that by the

PROGRESS REPORT LETTER FROM THE FOUNDER / CEO

ANNUAL SUSTAINABILITY

REPORT

2017

Score

ENV IRONMENT 20

Environmental Products & Services(e.g. Renewable energy, recycling) NA

Environmental Practices 16

Land, Office, Plant 4

Energy, Water, Materials 6

Emissions, Water, Waste 2

Suppliers & Transportation 5

WORKERS 24

Compensation, Benefits & Training 17

Worker Ownership 2

Work Environment 5

C OMMUN I TY 38

Community Practices 22

Suppliers & Distributors 2

Local 8

Diversity 3

Job Creation 2

Civic Engagement & Giving 7

GOVERNANCE 14

Accountability 3

Transparency 2

2017 B CORP SCORE

end of 2018. All of these goals help us consistently improve our work environment and the community as well.

If you have ideas to reduce our carbon footprint, please bring them to our new B Corp Representative, Mindy Bruchler, and she will look for ways to implement them. We look forward to another year of innovation and best practices that help our environment, community, customers, and most important, our Harvest Market family.

Thank you for being part of our wonderful team.

Tom HonerFounder and CEOHarvest Market, Benefit Corporation

WATER USAGE

at Harvest Market’s two locations

$130,003

Total energy use in 2017: 2,018,016 kWh

a 10% increase in paid staff time to serve at nonprofit

fundraising events

a 65% increase in hours volunteered in the community

by our employees

visit bcorporation.net for more information

9780 out of 200 points required to certify. Recertification required every 2 years

2,515 units*

A 4.84% increase over 2016*1 Unit = 748 gallons

at Harvest Market’s two locations

UP FROM 86 IN 2015!

of our employees took advantage of HEAL loans

5%The New HEAL Program:

Helping Employees Access Loans An innovative employee benefit that helps employees avoid predatory lending and builds credit and savings

2017 Areas Improved:

• Employee understanding of Harvest’s social and environmental sustainability programs

• Employee satisfaction with salary, benefits, work hours, and bonus plan

This program rewards shoppers who bring in or purchase bags with a 10-cent wooden token to donate to the nonprofit recipient of their choice

$54,949In-the-Bag program earned

in 2017

10 cents at a time!

We labeled bins throughout both stores for source-separation of waste, recyclables and compostables, and re-introduced green waste bins at Mendosa’s

We returned polystyrene boxes to suppliers for re-use

TRASH RECYCLE COMPOST

WE

OUREMPLOYEES!

We used

LESS WATER15.5%

at our Mendosa’s location

Page 11: Why Performance Matters · Benefits of High Performance (Source: Just Good Business: An Investor’s Guide to B Corps, Yale Center for Business and the Environment, March 2018.) B

www.petsustainability.org

Aggregate Improvement

• Employee Satisfaction

• Living Wage

Good for Workers

Page 12: Why Performance Matters · Benefits of High Performance (Source: Just Good Business: An Investor’s Guide to B Corps, Yale Center for Business and the Environment, March 2018.) B

Strongcorporateresponsibilityprogramscan:

Benefits of High Performance

(Source: Project ROI: Defining the Competitive and Financial Advantages of Corporate Responsibility and Sustainability, Steve Rochlin et al., 2015.)

Reduceaverageturnoverrateby

25-50%

Increaseemployeeengagementby

7.5%

Increaseproductivityby

13%

Page 13: Why Performance Matters · Benefits of High Performance (Source: Just Good Business: An Investor’s Guide to B Corps, Yale Center for Business and the Environment, March 2018.) B

BCorpsattractandretaintoptalent.

Benefits of High Performance

(Source:ProjectROI:DefiningtheCompetitiveandFinancialAdvantagesofCorporateResponsibilityandSustainability,SteveRochlinetal.,2015.)

72%ofmillennialssaid“ajobwhereIcanmakeanimpact”

wasimportanttotheirhappiness.

(Source:WhyBCorpsHaveGreatEmployeeEngagement,HoneymanandKoch,June2016.)

MBA student loan forgiveness is offered for working at B Corps by Columbia, NYU & Yale, among others.

Page 14: Why Performance Matters · Benefits of High Performance (Source: Just Good Business: An Investor’s Guide to B Corps, Yale Center for Business and the Environment, March 2018.) B

ALinkedInstudyfoundthatpurpose-orientedemployeesare:

Benefits of High Performance

(Source:JustGoodBusiness:AnInvestor’sGuidetoBCorps,YaleCenterforBusinessandtheEnvironment,March2018.)

Howlikelyareyoutorecommendworkingheretoafriendorcolleague?

1 2 3 4 5 6 7 8 9 10

PromotersNeutralsDetractors

eNPS(NetPromoterScore)Scale:

54%morelikelytostayfor5+years

30%morelikelytobehighperformers

69%morelikelytobePromotersontheeNPSscale

Page 15: Why Performance Matters · Benefits of High Performance (Source: Just Good Business: An Investor’s Guide to B Corps, Yale Center for Business and the Environment, March 2018.) B

Example: Employee Benefits

Page 16: Why Performance Matters · Benefits of High Performance (Source: Just Good Business: An Investor’s Guide to B Corps, Yale Center for Business and the Environment, March 2018.) B

www.petsustainability.org

Aggregate Improvement• Philanthropy! • Supply CoC • Advocacy for Soc/Env standards • Attrition/Employee Engagement

Good for Community

Page 17: Why Performance Matters · Benefits of High Performance (Source: Just Good Business: An Investor’s Guide to B Corps, Yale Center for Business and the Environment, March 2018.) B

Benefits of High Performance

Every$1incorporatephilanthropycangenerate

$6insalesrevenues(withinlimits).

(Source: Project ROI: Defining the Competitive and Financial Advantages of Corporate Responsibility and Sustainability, Steve Rochlin et al., 2015.)

7-11%ofacompany’svaluecomesfromits

corporateresponsibilitybrand/reputation.

Page 18: Why Performance Matters · Benefits of High Performance (Source: Just Good Business: An Investor’s Guide to B Corps, Yale Center for Business and the Environment, March 2018.) B

Benefits of High Performance

(Source:JustGoodBusiness:AnInvestor’sGuidetoBCorps,YaleCenterforBusinessandtheEnvironment,March2018.)

ConsumerLoyalty

Consumersare

2.5xmoreloyaltocompaniesthatintegratetheir

valuesthroughouttheirsupplychains.

ConsumerTrust

Involvingcustomersinyourcorporateresponsibilityinitiatives

increasestheirtrustinyourcompanyanddecreasestrust

inyourcompetitors

(Source:ProjectROI:DefiningtheCompetitiveandFinancialAdvantagesofCorporateResponsibilityandSustainability,SteveRochlinetal.,2015.)

Page 19: Why Performance Matters · Benefits of High Performance (Source: Just Good Business: An Investor’s Guide to B Corps, Yale Center for Business and the Environment, March 2018.) B

Example: Giving Back

Page 20: Why Performance Matters · Benefits of High Performance (Source: Just Good Business: An Investor’s Guide to B Corps, Yale Center for Business and the Environment, March 2018.) B

Example: Giving Back

In2017NorthCoastBrewingCo.gave$26,548tosupportMarineMammalResearch&Rescuesupportingthefollowingorganizations:

Page 21: Why Performance Matters · Benefits of High Performance (Source: Just Good Business: An Investor’s Guide to B Corps, Yale Center for Business and the Environment, March 2018.) B

www.petsustainability.org

Aggregate Improvement

Good for the Environment

Page 22: Why Performance Matters · Benefits of High Performance (Source: Just Good Business: An Investor’s Guide to B Corps, Yale Center for Business and the Environment, March 2018.) B

Benefits of High Performance

IncreaseEfficiency

Loweryourenvironmental

footprint,measure&manageyourenergy,water&otherinputs.

MitigateRisk

Understandyoursupplychain’simpacts;protectemployeehealth.

SaveMoney/ReduceCosts

ReducewastethroughZeroWasteorotherstrategiesto

reduce,reuse&recycle.

Page 23: Why Performance Matters · Benefits of High Performance (Source: Just Good Business: An Investor’s Guide to B Corps, Yale Center for Business and the Environment, March 2018.) B

Example: Energy Use

Page 24: Why Performance Matters · Benefits of High Performance (Source: Just Good Business: An Investor’s Guide to B Corps, Yale Center for Business and the Environment, March 2018.) B

www.petsustainability.org

Aggregate Improvement

Inputs: a range of dimensions focused on conservation of energy, water and materials in operations.

Your Low-Hanging Fruit Report from PSC: Identify one metric as “low-hanging fruit” ripe for improvement.

Page 25: Why Performance Matters · Benefits of High Performance (Source: Just Good Business: An Investor’s Guide to B Corps, Yale Center for Business and the Environment, March 2018.) B

Your Low-Hanging Fruit Report Whichcategorydoesyourmetriccomefrom?

1.  Divideintogroupsbasedonyourcategory2.  DevelopyourpersonalActionPlan

(usingtheActionPlanDevelopmentWorksheet)3.  Discussbarrierstoimplementation

4.  IdentifyyourActionPlanAccountabilityBuddy,stayintouch!

GOV ERNANC E WORK ER S

COMMUN I T Y IMPAC T

ENV I RONMENTA L IMPAC T

Page 26: Why Performance Matters · Benefits of High Performance (Source: Just Good Business: An Investor’s Guide to B Corps, Yale Center for Business and the Environment, March 2018.) B

Environment:Building,Operations,Logisticsefficiency.(MELISSA)CommunityA:Supportingyourlocalcommunity(HEATHER)CommunityB:Workingwithyoursupplychaincommunity(DARREN)Workers:Employeeengagement/benefits/satisfaction(KARTAELISE)Mission&Governance(STEPHANIE)

Page 27: Why Performance Matters · Benefits of High Performance (Source: Just Good Business: An Investor’s Guide to B Corps, Yale Center for Business and the Environment, March 2018.) B

Reconvene

•  Didyouselectonemeasureforimprovement?•  IsyourActionPlansolid?• Whatcommonbarrierstoimplementationdoweface?•  Doyoufeelempoweredtomakethischangewithinyourcompany?

Page 28: Why Performance Matters · Benefits of High Performance (Source: Just Good Business: An Investor’s Guide to B Corps, Yale Center for Business and the Environment, March 2018.) B

Thank you!

B Corp & Zero Waste Certification Specialist

[email protected]