Organizational Survival Through Sustainability

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This presentation comes to you from International Project Management Day 2013 - the annual global virtual summit from IIL that brings together business and technology leaders from around the world to discuss the latest trends and methods in business, leadership and communications. To view the accompanying video keynotes and presentations connect to the event here bit.ly/1blJSkE or purchase the DVD collection http://bit.ly/1fZ9Yc0

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Organizational Survival Through Sustainability

  1. 1. ORGANIZATION SURVIVAL Double Meaning of Sustainability Gregory Balestrero Nathalie Udo IIL Strategic Advisors, Sustainability, Corporate Consciousness, Leadership ©2013 International Institute for Learning, Inc., All rights reserved.
  2. 2. What to Expect from this Presentation A dose of reality about the future An understanding about “double meaning of sustainability” A basic business case for change…how to be successful sustainable performance What the PM profession should expect in the future A sense of hope about the future
  3. 3. The Science and Facts that are Indisputable: Global population is growing dramatically Global middle class and product demand are growing dramatically People are moving into cities at historically record numbers Greenhouse gases, especially CO2 emissions, are accumulating in the atmosphere, and warming the planet surface and seas Acidity of the oceans are increasing, due to excessive absorption of CO2 Water and food production are being stretched to scarcity Manufacturing raw materials are being stretched to scarcity Prosperity is not evenly distributed throughout the world
  4. 4. “As our gadget dependency grows, so does our appetite for these bits of earth. In fact, demand for the 14 most-critical minerals for today’s electronic technologies may as much as triple over the next 20 years, according to the European Commission.… “The era of access to easy resources is over,” says mining analyst Paul Bugala of Calvert Investments.16 “How a Handful of Countries Control the Supply of the Earth’s Most Precious Resources,” Kate Rockwood
  5. 5. Forestry and Its Impact The world’s forest ecosystems provide environmental services that benefit, directly or indirectly, all human communities, including watershed protection, regional climatic regulation, fibre, food, drinking water, air purification, carbon storage, recreation, and pharmaceuticals.20 Ahmed Djoghlaf, Executive Secretary of the Convention on Biological Diversity
  6. 6. 13 million hectares (30 million acres) of forests are destroyed by human activity every year UN’s Food and Agriculture Organization
  7. 7. “The thermoelectric industry in the USA alone uses more than 132 billion gallons (almost 500 billion liters) of freshwater each day to produce electricity to meet the daily demand… This translates to ninety-five liters of water (about 25 gallons) to produce…the electricity needed to keep a 60-watt incandescent light bulb lit for about eighteen hours! Water Resources Study - Virginia Water Resources Center Blacksburg, Virginia, USA
  8. 8. 70% of world population will be living in cities 9 Billion people...60% Increase 55% Middle Class…300% Increase THE LOOK OF 2050 Dominant Growth in Asia and the Far East Middle Classes in Developing World Bring New Internal Markets Growing Unemployment in Educated Youth globally
  9. 9. Unequal wealth, health, and resources. Insufficient Sanitation in Developing Nations Limited materials to meet Urbanization Demands Depletion of Many Species of Marine and Animal Life Global Warming Causes Damage to Global Economy Fresh Water Scarcity and Crisis Areas Expand Insufficient Production Raw Materials Insufficient Crop Yields to Support Food Demand for all Nations Limited sustainable communities in developing nations
  10. 10. So What Does All This Mean to Organizations in the Future?
  11. 11. “I see no other long term choice for industry to survive ... Each of us has a role in this transformation. We must all learn to make peace with the earth, not to make war on it, or we will lose.” Ray Anderson, Interface, Inc.
  12. 12. ORGANIZATIONS WORLDWIDE MUST RECOGNIZE THAT THEIR OWN SURVIVABILITY DEPENDS ON THEIR ABILITY TO BECOME A GREAT CORPORATE CITIZEN
  13. 13. SUSTAINABILITY OF A COMPANY IS INEXTRICABLY LINKED TO THE SUSTAINABILITY OF THE PLANET AND OUR COMMUNITIES
  14. 14. SOCIAL TRADITIONAL STRATEGY OF THE “TRIPLE BOTTOM LINE (TBL)” ENVIRONMENTAL Assuming Responsibility for Contributing to a Sustainable Future Aligning Business Values with those of Individual and Community Stakeholders Sustainable Future ECONOMIC Transforming business into a valuable investment based on clear principles of sustainability
  15. 15. “It makes good business sense for business to broaden its definition of leadership. It cannot be seen as acting solely in self interest, but rather must execute on both the fundamentals of profit and societal good.” Richard Edelman President and CEO Edelman Communications Reference: 2012 Trust Barometer; Executive Summary
  16. 16. “Business must embrace a new mantra: move beyond earning the License to Operate—the minimum required standard— toward earning a License to Lead—in which business serves the needs of shareholders and broader stakeholders by being profitable and acting as a positive force in society .” Richard Edelman President and CEO Edelman Communications Reference: 2013 Trust Barometer; Executive Summary
  17. 17. “TBL” is No Longer Enough… ORGANIZATIONS MUST BUILD TRUST AMONG ALL STAKEHOLDERS IT MUST BE DONE OPENLY, WITH RIGOROUS ACCOUNTABILITY ETHICAL BEHAVIOR IS NO LONGER AN OPTION
  18. 18. Big is Not Necessarily Better… Sustainable Success is Scalable
  19. 19. The Power of a New Idea… And a New Business Model
  20. 20. SOCIAL INNOVATION SPAWNS NEW BUSINESS MODELS “Social Innovation refers to new ideas that resolve existing social, cultural, economic and environmental challenges for the benefit of people and planet. A true social innovation is systems-changing—it permanently alters the perceptions, behaviors and structures that previously gave rise to these challenges. Canadian Centre of Social Innovation
  21. 21. Common Initiatives of Sustainability Leaders Management of water-related risks, particularly in regions where water scarcity and quality are an issue Enterprise-wide policies focused on climate change Supply chain management, with a particular focus on integrating cost and risk management Sustainable sourcing, with a particular focus on human rights Basing some of the variable compensation of key executives on accomplishments aligned with the corporate sustainability strategy Integrated financial reporting that clearly demonstrates the value of sustainability SOURCE: RobecoSAM-KPMG 2013 Annual Report
  22. 22. Common Traits of the Sustainability Leaders  Utilizes an integrated strategy that embraces and embeds social, environmental, economic and ethical responsibility  Utilizes a long-term business view to make strategic decisions  Invests in deployment of strategy, vertically and horizontally throughout the organization  Invests in risk management in all aspects of the operations.  Takes responsibility for the complete value chain and supply chain  Demonstrates rigorous transparency and accountability for results and actions  Nurtures innovation in all aspects of operations  Embraces synergetic collaborations
  23. 23. Sustainable Success Requires Strategic Change
  24. 24. Building an Integrated Strategy
  25. 25. What Does This Mean for PM?  Increasingly responsible for sustainable change – the new constraints  Knowledge of key stakeholders beyond your customers  Rigorously accountable for results by multiple stakeholders  Ethics and value sets are part of the execution of any project  Intimate knowledge of supply chain environmental and social practices  Risk assessment and mitigation is a “must-have”, critical competency  Moments of clarity will test you and your beliefs, as your organization deals more with sustainability issues.  Excellence in PM is a “table stake” for success, not optional behavior.
  26. 26. “LEITH” TO STEP ACROSS THE THRESHOLD
  27. 27. Continue the conversation with us www.sustainability.iil.com
  28. 28. Per-Order Now on Amazon.com! GREG BALESTRERO NATHALIE UDO
  29. 29. Questions?
  30. 30. We hope you enjoyed this presentation. Your feedback is important so please click on the “content” button below to complete a short survey.

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