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