Post on 21-Jan-2017
"The theme of environmental consciousness is the DNA of this campus and goes back 50 years. Sustainability is not an add-on but is integrated throughout our curriculum”
Dean Robert SullivanRady School of Management at the
University of California at San Diego
GreenBusiness
SustainableBusiness
Triple Bottom
Line
Sustainability
CorporateSocial
Responsibility
Terminology
What is Sustainability?"Humanity has the ability to make development
sustainable--to ensure that it meets the needs of the present without compromising the ability of future generations to meet their own needs."
Brundtland Commission Report
“Sustainability consists of harmonizing the ecological, social, and economic aspects of human activity in such a way that economic growth is consistent with long-term ecological activity.”
Brian and Mary Nattrass, Consultants and Authors of The Natural Step for Business
Defining Green Business
Green businesses operate in ways that solve, rather than cause, both environmental and social problems.
These businesses adopt principles, policies, and practices that improve the quality of life for their customers, their employees, communities, and the environment.
Source: www.coopamerica.org
The Natural Step• A shared science- and systems-
based definition for sustainability
• A decision-making framework and process to help organizations and communities plan for sustainability
• A compass to help us know if we’re moving in the right direction
Communicating theBUSINESS CA$E for Sustainability
Bob Willard bobwillard@sympatico.ca www.sustainabilityadvantage.com
Sustainability 3-Legged StoolSustainability
Economic LegGood JobsFair wages
SecurityInfrastructure
Fair Trade
Social Leg Working conditions
Health servicesEducation services
Community & CultureSocial justice
Environmental Leg0 Pollution & WasteRenewable Energy
ConservationRestoration
Quality of Life / Genuine Wealth / Genuine ProgressSource: Bob Willard- The Business Case for Sustainability
Smart Business 3-Legged Stool
Asset Management
FinancialCapital
BuiltCapital
NaturalCapital
Human Capital
Social Capital
Sustainable Value CreationSource: Bob WillardSource: Bob Willard- The Business Case for Sustainability
Company Value “Iceberg”
Balance Sheet
Market CapitalizationSource: Bob Willard- The Business Case for Sustainability
Company Value “Iceberg”
Intangibles - NonfinancialsReputation - Brand ImageStakeholder Relationships
TangiblesFinancials
Market Capitalization
Balance Sheet
Source: Bob Willard- The Business Case for Sustainability
Company Value “Iceberg”: 1981
Intangibles / Nonfinancials / Reputation
TangiblesFinancials
Market Capitalization
Balance Sheet
83%
17%
Arthur D. Little, The Business Case for Corporate Citizenship , 2002Source: Bob Willard- The Business Case for Sustainability
Company Value “Iceberg”: 1998
IntangiblesNonfinancials
Reputation
TangiblesFinancials
29%
71%
Arthur D. Little, The Business Case for Corporate Citizenship , 2002Source: Bob Willard- The Business Case for Sustainability
Sea of Demanding Stakeholders
Nonfinancials / Reputation
Financials
Employees
Customers
Media
Economists
Scientists
NGOs
Competitors
Global Markets
Governments
Insurers
The Public Investors
Banks
Source: Bob Willard- The Business Case for Sustainability
Two-Part Business Case
Nonfinancials / Reputation
Financials
Employees
Customers
Media
Economists
Scientists
NGOs
Competitors
Global Markets
Governments
Insurers
The Public Investors
Banks
Source: Bob Willard- The Business Case for Sustainability
Mega-Issue Storm Clouds
Employees
Customers
Media
Economists
Scientists
NGOs
Competitors
Global Markets
Governments
Insurers
The Public Investors
Banks
Water CrisisPandemics
Erosion of Trust
Pollution & Health
Nonfinancials / Reputation
Wealth Chasm
Food Crisis
Source: Bob Willard- The Business Case for Sustainability
7 Benefit Areas1. Reduced recruiting costs2. Reduced attrition costs
3. Increased employee productivity
4. Reduced expenses in manufacturing5. Reduced expenses at commercial sites
6. Increased revenue - market share7. Lower insurance & borrowing costs
… yielding a profit increase of +38%
Usual
focus
REPUTATIONSource: Bob Willard- The Business Case for Sustainability
One More Goal … or an Enabling Strategy?
Innovation
Speed to market
New markets
Talent wars
Productivity
Motivation
Brand image
Managing risks
Compliance
Supply security
Profit
Share price
Growth
Revenue
Customer care
Expense savings
Competition
Market share
Leadership
Governance
Source: Bob Willard- The Business Case for Sustainability
The Natural Step• Does your organization have a definition of
sustainability?
• What is, with reference to this definition, your gap to sustainability?
• What are you doing, at the strategic level of the organization, to bridge that gap?
Source: The Natural Step
Interface
Stonyfield Farm
Patagonia
Mystery Environmentalist…MYSTERY COMPANY’S environmental goals
are simple and straightforward:• to be supplied 100 percent by renewable
energy;• to create zero waste;• and to sell products that sustain our natural
resources and the environment.
Today’s Environmentalists• Microsoft• Whole Foods• Kellogg’s• McDonalds• Home Depot
• Disney• UPS• Coca-Cola• Starbucks• PepsiCo.
Source: Strategies for a Green Economy, Joel Makower
What About the Economy?In 16 of the 18 industries studied, companies
committed to sustainability outperformed industry averages by 15% over the six months from May through November 2008.
From a market capitalization perspective, this superior performance averages out to $650 million in protected market capitalization per company.
Source: A.T. Kearney, Inc, Green Winners: The Performance of Sustainability-focused Companies in the Financial Crisis
What About the Economy?“Our study indicates that the market rewards specific
companies,” said Dr. Daniel Mahler, author of the study. “We find common characteristics among the leading companies that show that sustainability goes far beyond the narrow definition of being environmentally friendly.”
These characteristics include:• A focus on long-term strategy, not just short-term gains• Strong corporate governance• Sound risk-management practices• A history of investment in green innovation
Source: A.T. Kearney, Inc, Green Winners: The Performance of Sustainability-focused Companies in the Financial Crisis
Results?
Source: © Greener World Media, Inc (greenbiz.com)
Bad News
•Greenhouse gas emissions are up
•Telecommuting is down
•E-Waste is up
Good News
•Cleantech investments up
•Clean-Energy Patents up
•Energy Efficiency up
Results?
Source: © Greener World Media, Inc (greenbiz.com)
Good News
•Paper Use & Recycling
Staying Afloat
•Green Jobs
•Packaging Intensity
•Toxic Emissions & Toxics in Manufacturing
Platform or Passion?“One oft-quoted study of 1500 business school
graduates over a twenty-year period shows that 1245 (83%) went right for the money (platform) and 255 (17%) went for their passion. After twenty years, there were 101 multi-millionaires. One took the "platform" track; the other 100 took the "passion" track.”
Dr. Mark Albion, Co-Founder of Net Impact
Green Jobs
According to Net Impact:• The number of “sustainability” jobs posted on the
two leading business jobs sites are growing at a rate of 37% per year.
• Who is pushing this growth? Disney, Nike and Starbucks.
Source: GreenBiz.com, Jan 16, 2008, CSR Jobs Rank High for Newly Minted MBAs: Report
Talent Risks40% 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 company’s positive CSR reputation increases their loyalty
(GlobeScan 2006)
83% of employees in G7 countries say company’s positive CSR reputation increases their motivation (GlobeScan 2006)
Source: Bob Willard- The Business Case for Sustainability
What Am I Doing?
• Individual & Team Coaching• Green Business Coaching Group• Webinars• Blog / Podcast / Writing• Business/Community Projects• Sustainability Strategic Planning using The
Natural Step