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From Dark Grey To Bright Green in seven steps

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After tracking sustainability initiatives of 30 Fortune 500 companies …

After tracking sustainability initiatives of 30 Fortune 500 companies
(ref. InnovaStrat. US) , it seems that every company goes more or less trough seven similar steps…

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  • De presentatie is verteld vanuit het perspectief van de CEO…
  • De presentatie is verteld vanuit het perspectief van de CEO…
  • As an economist, you consider the pressure of your business in social or environmental harm as externalities and as
  • As an economist, you consider the pressure of your business in social or environmental harm as externalities and as
  • Transcript

    • 1. From
dark‐grey

 to
bright‐green
 (In
seven
steps)
 Stefaan Vandist | www.trinity-planning.be
    • 2. Sustainability is all very nice, but I’m trying to run a business here (the boss)
 This
is
the
story
told
from
a
business
 execu:ve
perspec:ve…

    • 3. but
with
a
geeks’
horizon…

    • 4. The
sustainability
 ladder
 1
 2
 3
 4
 5
 6
 7
 ABer
tracking
sustainability
ini:a:ves
of
30
Fortune
500
companies

 (ref.
InnovaStrat.
US)
,
it
seems
that
every
company

 goes
more
or
less
trough
seven
similar
steps…

    • 5. 1
 

DENIAL 

    • 6. 1
DENIAL

 As
an
economist,
you
‘manage’
environmental
and
social
consequences
as
 externali:es.
You
keep
your
boNom‐line
op:mized
by
denying
responsibility.
Why
 should
you
care
anyway?
You’re
running
a
business,
not
a
charity.
Especially
now,
you
 don’t
want
to
make
anything
erode
your
compe::veness

    • 7. 1
DENIAL

 You
consider
the
green
movement
as
‘soixant‐huitards’,
hippies
and
ac:vists.
 Perverts
even!
They
are
annoying.
You
want
to
sew
them
if
they
show
up
again
at
 your
doorstep.
The
public
associates
your
company
with
some
bad
behaviours.
 
The
reason?
Ac:vism!

It’s
their
fault.
They
harm
the
company.

    • 8. 2
 PRETENDING

    • 9. 2
PRETENDING
 On
a
bright
morning
you
conclude
sustainability
is
the
next
big
thing.
You
have
to.

 It’s
in
your
latest
trend
report,
in
smart
magazines
sold
at
airports,
aBer
several
 mouse‐clicks
and
in
newspapers.
Even
car
manufacturers
finally
jump
on
the
 bandwagon.
Your
marke:ng
manager
talks
about
promising,
new,
 young

and
high‐educated
target
audiences.
You
call
the
agency!


    • 10. 2
PRETENDING
 You
come
up
with
expensive
campaigns
with
inspiring
imaging
and
a
sweet
 soundtrack.
Your
messaging
pimps
your
single
best
environmental
aNribute,
blurring
 the
aNen:on
of
the
complete
picture.
You
build
awareness
on
TV,
in
newspapers,

in
 airports
and
interna:onal
railway
sta:ons.
You
see
you’re
not
alone.

    • 11. 2
PRETENDING
 You
travel
to
a
poor
na:on
where
your
raw
materials
are
grown.
An
air‐condi:oned
 bus
takes
you
to
a
reforesta:on
project
that
collaborates
with
the
local
community.

 A
young
boy
gives
you
a
spade.
You
plant
a
tree.
You
look
good
on
the
picture.

 You
feel
a
bit
silly.
You
go
home
to
pick
up
the
serious
stuff
again.

    • 12. 3
 COMPLIANCE

    • 13. VLAREM | REACH | ISO 9000 | ISO 14000 | EFQM | SA 8000 | GRI | GRI G3 | AA 1000 FRAMEWORK | AA 1000 AS | AA 1000 SES | SIGMA | EMAS 3

COMPLIANCE
 That
brings
you
back
to
zero.
Sustainability
is
s:ll
and
foremost
a
maNer
of
compliance
 to
industry
standardiza:on
and
regula:on.
Compliance
costs
money,
but
incompliance
 costs
more.
Communica:on
is
repor:ng.

    • 14. 3

COMPLIANCE
 But
there
comes
the
nice
surprise.
When
compliance
meets
the
economies
of
scale,
it
 seems
we
lower
costs
reducing
expensive
inputs.
And
it
seems
that
if
we
are
the
first
 to
comply
with
most
stringent
rules,
our
compe::veness
goes
up.
Like
HP
who
has
set
 the
new
industry
standards
being
the
first
to
ban
toxic
leads,
and
got
ahead
of
its
compe::on
 with
5
years
of
advantage
in
the
use
of
solders
(amalgam
of
:n,
silver
and
copper)

    • 15. 3

COMPLIANCE
 Imagine
GM
had
embraced
the
emission
standards
for
the
automo:ve
industry
first

 proposed
in
2002,
it
would
be
two
or
three
design
cycles
ahead
of
its
rivals
today.

    • 16. 4
 LCA 

    • 17. Recycle | Reduce | Re-use | Reconsider | Rebuild | Rethink | Re-feed | Reflect React |   4
LCA
(Lifecycle
analysis)
 You
are
completely
obsessed
wit
R‐words.
In
an
indebt
lifecycle
analysis
you
discover
 opportuni:es
to
save
raw
materials,
costs,
energy,
increase
contacts
points
with
clients
 that
result
in
business
con:nuity
and
many
other
surprises
that
have
a
posi:ve
impact
 on
the
boNom‐line.
You
feel
very
comfortable.
Sustainability
jus:fies
saving.

 You’re
in
the
land
of
efficiency.
You
feel
home.

    • 18. 4
LCA
(Lifecycle
analysis)
 Like
Unilever,
who
partnered
with
environmental
organiza:ons
to
find
out
how
to
grow 
 palm
oil,
soy
beans
and
cacao
in
a
less
pollu:ng
way,
with
less
pressure
on
biodiveristy.
 This
has
resulted
in
techniques
to
improve
crop
yields
and
seed
produc:on

    • 19. 4
LCA
(Lifecycle
analysis)
 Like
Wal‐Mart’s
CEO
Leo
ScoN
(2008),
who
gave
more
than
1000
Chinese
suppliers
a
 direc:ve:
cut
packaging
cost
with
5%
by
2015
and
increase
energy‐efficiency
with
25%
 in
three
years.


    • 20. 4
LCA
(Lifecycle
analysis)
 Like
Fedex
who
rolled
out
its
Global
Fuel
Sense
Program,
op:mizing
aircraB
schedules
 and
logis:cs
with
high‐end
soBware,
replaced
aircraBs,
trucks
and
vans.
 Result:
reduc:on
of
36%
of
energy
consump:on,
increase
of
20%
capacity

    • 21. 5
 Design

    • 22. 5
Design
 As
you
see
that
a
sizable
number
of
consumers
prefer
eco‐friendly
offerings,
you
 believe
your
business
can
score
over
rivals
by
being
the
first
to
redesign
exis:ng
 products
or
develop
new
ones.
So
you
bring
in
a
club
of
ET’s
and
kickstart
an
eco‐
 (re)design‐process

    • 23. 5
Design
 Eco‐design
is
exci:ng,
also
for
large
corpora:ons.
P&G
found
out
to
make
an
 amazing
difference
if
people
would
wash
at
lower
temperatures
(80
billion
fewer
 KWh/J).
That’s
why
the
company
made
the
development
of
cold‐water
detergents
 a
priority.
In
2005
it
launched
Ariel
Cool.

 Result
UK:
2002‐2%
>
2008‐21%

Result
NL:2002‐5%
>
2008:52%


    • 24. 6
 New
business
models 

    • 25. 6
new
Business
Models
 You’ve
read
Blue
Ocean
Strategy,
and
you’ve
seen
the
success
of
Itunes,
Amazon
 and
other
new
stars
and
icons.
You
understand
that
successful
models
include
 novel
ways
of
capturing
revenues
and
delivering
services,
likely
in
tandem
with
 other
companies.

    • 26. 6
new
Business
Models
 Like
Fedex,
who
partners
with
Kinko’s
to
come
up
with
a
print
and
deliver‐service.
 They
asks
customers
if
they
would
like
to
electronically
transfer
the
 master
copy
to
one
of
the
Kinko
offices
nearby
the
receiver

    • 27. 6
new
Business
Models
 Or
like
Sony
who
partners
up
with
Green
Squad
to
collect
electronic
waste
via
 schools,
to
recover
useful
raw
materials.

    • 28. 7
 Next
pracQce
plaRorms 

    • 29. 7
Next
pracQce
plaRorms
 By
ques:oning
the
obvious,
we
invent
the
future
and
disrup:ve
innova:on
is
 possible.
Can
we
have
a
posi:ve
effect
on
nature
too?
If
threes
produce
oxygen
 and
purify
water,
can
houses
be
trees?
Can
ci:es
be
forests?
Can
cleaning
 products
be
good
for
the
environment
in
stead
of
“less
bad”?


    • 30. 7
Next
pracQce
plaRorms
 Can
we
cool
our
buildings
without
airco?
If
ants
can
do
it
in
the
hoNest
places
on
 earth
since
millions
of
years,
why
can’t
we?
Biomimicry
tries
to
understand
the
 design
of
nature
and
transports
the
design
paNerns
to

engineering,
architecture
 and
design.

    • 31. 7
Next
pracQce
plaRorms
 What
if
we
remake
the
way
we
make
things?

 If
we
devide
technical
cycles
from
biological
cycles,
and
redesign
our
fabrics
and
 materials
on
a
molecular
level
to
get
rid
of
all
toxics
and
design
not
products
but
 cycles,
sell
no
goods
but
services?
Then
we
close
the
loop
just
as
in
the
natural
 World.
Zero
waste.
Zero
emission.
Big
companies
such
as
Nike,
Aveda,
Ford,
 Timerland,
Interface,
Akzo
Nobel
and
Herman
Miller
take
cradle‐to‐cradle
very
 seriously


    • 32. Thanks
for
your
aSenQon!
 Inspired by research of InnovaStrat - Santa Cruz. Written, compiled, Arranged and visualized by Stefaan Vandist – www.trinity-planning.be – stefaan@trinity-planning.be