Professional Documents
Culture Documents
Definitions of Sustainability
Sustainable Development (SD)
Meeting the needs of the present generation without compromising the ability of future generations to meet their own needs
-- Brundtland Commission, 1987
Sustainability
The possibility that human and other forms of life on earth will flourish forever
-- John Ehrenfeld, Professor Emeritus. MIT
(Eco-)Systems Thinking
Carrying capacity of the planet to absorb waste and support life
Social Justice
Equity, Dignity, Basic services, Human rights, Stakeholder voices
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Economic Leg Good Jobs Fair wages Security Infrastructure Fair Trade
Social Leg Working conditions Health services Education services Community & Culture Social justice
4. Integrated Strategy
Enhanced business value 3. Beyond Compliance Eco-efficiencies PR crisis Regulatory threat 2. Compliance Regulatory enforcement 1. Pre-Compliance
Market Capitalization
Tangibles Financials
Market Capitalization
Tangibles Financials
83%
17%
Market Capitalization
Arthur D. Little, The Business Case for Corporate Citizenship , 2002
Tangibles Financials
29%
71%
Employees
Media The Public Nonfinancials / Reputation Customers Competitors Banks Governments Insurers Scientists Global Markets Investors
Financials NGOs Media The Public Nonfinancials / Reputation Customers Competitors Banks Governments Insurers Scientists Economists Global Markets Investors
Employees
Employees
Cover collage from Deloitte & Touche Tax Wednesday seminar, March 26, 2008
Employee Risks
40% of MBA grads rated CSR as a an extremely or very important company reputation measure when job hunting (Hill & Knowlton Jan 08) 92% of students and entry-level hires seek an environmentally friendly company
(MonsterTRAK.com survey, Nov 07)
83% of employees in G7 countries say companys positive CSR reputation increases their loyalty
(GlobeScan 2006)
83% of employees in G7 countries say companys positive CSR reputation increases their motivation
(GlobeScan 2006)
1. Cost of climate change mitigation: 1% of annual global GDP by 2050 if we act now; 5-20% if we act later
2. Benefits of $2.5T if we act now; global depression if we do nothing 3. Must stabilize GHGs: Use carbon taxes and / or a cap-and-trade system; deploy low-carbon technologies; 80-90% below 1990 levels by 2050 in developed countries
Leading, well-positioned companies can gain up to 80% increase in value. Badly positioned, slow companies have up to 65% of their value at risk. (Carbon Trust & McKinsey Report: Climate Change: a business revolution? 2008)
http://www.cdproject.net/
Western Climate Initiative (WCI) 7 West-coast U.S. states + BC, MB, QC, ON
Regional Greenhouse Gas Initiative (RGGI) 10 East-coast U.S. States
Midwestern GHG Accord (MGA) 9 Midwest States + MB US Climate Action Partnership (USCAP) 31 corps and NGOs; want cap-and-trade, 15% GHG cut in 15 years; 60-80% GHG cut by 2050
Financials NGOs Media The Public Nonfinancials / Reputation Customers Competitors Banks Governments Insurers Scientists Economists Global Markets Investors
Employees
Growth
Revenue Customer care
New markets
Talent wars Productivity
Expense savings
Competition Market share Leadership Governance
Motivation
Brand image Managing risks Compliance Supply security
Potential profit increase: +38% + Energized employees + Improved corporate image + Competitive advantage + Positioned for the future
7 Benefit Areas
1. Reduced recruiting costs 2. Reduced attrition costs 3. Increased employee productivity
4. Eco-efficiencies in manufacturing
5. Eco-efficiencies at commercial sites
Potential Improvements
1. Reduced recruiting costs 2. Reduced attrition costs 3. Increased employee productivity -1% -2%
+10%
-5%
4. Eco-efficiencies in manufacturing
5. Eco-efficiencies at commercial sites
-20%
+5% -5%
Retrofits of lighting, heat recovery from waste water, etc. Saved $380K/year; targets $1B / year at US plants
Saved $1M/yr by removing light bulbs from employee soft drink machines Saved $2.6M/yr by putting low-lead LEDs in freezers Saved $10M/yr by more aggressively recycling cardboard and plastic
Eliminated almost 40,000 gallons per year of waste water Saved over $50K/year
Reduced GHG emissions by 38% between 1990 and 2002; Saved $600M/ year at Ludwigshafen site alone
In five years, increased production by 50% while waste emissions were cut by half; Saved $125M/year
Financials NGOs Media The Public Nonfinancials / Reputation Customers Competitors Banks Governments Insurers Scientists Economists Global Markets Investors
Employees
1. Pre-Compliance
In Summary
Sustainability is smart business
Business language applies Important stakeholders expectations are rising New market forces & risks are in play Relevant to existing business priorities
99 firms, 18 industries
A.T. Kearney report, Feb. 2009:"Green Winners: The Performance of Sustainability-Focused Companies in the Financial Crisis
Those organizations that have built sustainability into their structure properly will come out of this better than those who saw it as a public relations measure.
(Richard Spencer, Institute of Chartered Accountants in England and Wales (ICAEW), Feb 09)
$60B for green measures, including $17B for energy efficiency and $19B for clean cars; attractive feed-in tariffs in some countries
Reuters, Global green energy stimulus hits $200 billion bank, based on analysis by Deutsche Bank, Feb 2009
Recovery or Reinvention?
"We can't solve problems by using the same kind of thinking we used when we created them." (Albert Einstein)
DRM Syndrome
(Rob Watson, Greener Buildings News, Feb 09)
Disaster-Recovery Mentality Back to the old normal and status quo vs. ReWealth
(Storm Cunningham, ReWealth, 2008 )