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  • ????
  • Eddie will be 101 in 2050!
  • Emerging markets . . . 65 years ago both of these countries economies were totally destroyed. Brilliant job of recovery!
  • Plus also the population was a lot less . . .
  • How much does a garbage truck carry?
  • If we fail to manage that aspect of our life and business model then we will be bankrupt of resources
  • Please explain these
  • What about SC companies too???
  • What is a CJO
  • What is this legislation?
  • Transcript

    • 1.
    • 2. Sustainability
    • 3. Mono-cropping is endangering genetic diversity
      20 plants now supply 80% of humanity’s food
      Source: IDRC Briefing
      Did you know?!
    • 4. Did you know?!
      Chronic Water shortages:
      201031 countries > 500 million
      2013 36 U.S. States > 100 million
      203550 countries > 3 billion
      Only 3% of earths water supply is drinkable and 95% of it is frozen
      Source: Economist, Panjiva & Watersense
      Embedded water use 30x
      Canadian importation
      1:6 1.8 million
    • 5. Ogallala aquifer water source:
      33% of Corn crops
      30% of irrigated farmland
      80% CO, KS, NE, NTX, OK, SD, WY drinking water supply
      It is being pumped dry at the rate of 325 billion cubic meters a year
      Source: Kerr Center & U.S. EPA
      Did you know?!
    • 6. U.S. Gov’t study oil and gas supplies will not keep up with demand over next twenty-five years. Translation alternative energy, energy reduction, energy efficiency and rising energy prices.
      If China begins to use the same amount of oil per capita as the U.S., China alone would consume 100% of the world’s oil production
      2010: 12k cars per day
      2015: 150 million
      (18 million more than U.S.)
      Source: WSJ, People’s Daily & Morning Star
      Did you know?!
    • 7. Did you know?!
      Major Non-Renewable Resources are depleting world-wide:
      What does this mean?
      Computers, Communication, Healthcare and Solar power
      Source: Annual Vital Signs Report World Watch Institute & U.S. Geological Association
    • 8. U.S. economy consumes in excess of 100 billion tons of raw materials per year in excess of 90% of this ends up as waste
      Did you know?!
      Various forms of waste—solid and liquid—including plastics and petro-chemical disbursed through the air and ground waters can travel thousands of miles and end up in:
      impacting local health and eco-system survivability
      Source EPA
    • 9. What is basis to "problems”
      Global population is ever increasing
      9+ billion by 2050 (adding 2 to China’s)
      Income is increasing world-wide; new middle class
      Population + Income = Consumption
    • 10. $430 billion annual advertising budget
      4x increase China, India, Venezuela, Brazil, Argentina, South Korea, Taiwan,
      Indonesia and Thailand
      Top 20% Malaysians and Chileans have higher average incomes than German or Japanese counterparts
      Source: AMA & Yankelovich
      Did you know?!
    • 11. The Business Paradigm
      Many Businesses & Organizations still operate with a world-view that has not changed since
      Industrial Revolution
    • 12. Natural resources >
      Labor was <
      The Paradigm
      People limiting factors of production
    • 13. In spite of our best labor efforts, economy as a whole is enormously inefficient:
      Bad News: Increased waste tonnage from 250 million in 1990 to over 500 million today
      Good News: Capacity
      Unknown News: ?
      U.S. Economy
      4.5 lbs. per person per day = .821 tons per person per year
      Source: US EPA
    • 14. How do we manage waste ?!
      Current or Old Paradigm was
      remediation efforts
    • 15. What has this Paradigm resulted in?
      Regardless of one’s
      “political” persuasion
      How weoperate is
      unsustainable (NJR)
      Stewardship: Current growth model (indiscriminate consumption via obsolescence ) is not sustainable
    • 16. Some Simple Facts
      The Changing Paradigm
    • 17. Paradigm is Shifting
      Natural resources <
      Labor is >
      Natural resources limiting factors of production
    • 18. Next “Industrial Revolution”, like the first, will be in response to:
      changing patterns of scarcity
      and influenced behavior
      Natural Capital—Sustainability
      The New Paradigm
    • 19. Sustainability Another Word for:
      Corporate Social Responsibility
      Sustainable Development
    • 20. Core to contemporary Sustainability are the
      Four (E’s)
      What is Sustainability?
    • 21. 1st E Ecology & Environment
      2ndE Economy & Employment
      3rd E Equity & Equality (social)
      4th E Education
      4 E’s or Core to Sustainability
    • 22. Fad
      Sustainability: How Real?
    • 23. A definition:
      Economic Development + Social Wellbeing + Environmental Protection = Sustainability
      “Meet present needs without compromising the ability of future generations to meet their needs"(WECD, 1987).
    • 24.
      • Borneo (diesel to hydro)
      • 25. Tigray Region (women agriculture)
      • 26. Curitiba, Brazil (bus system 8-1.9)
      • 27. Bavaria, Germany (solar 9k)
      • 28. Adele, Australia (solar city)
      • 29. India (biogas and time)
      • 30. NYC (1 Yr &1k Bldg Supers)
      • 31. U.S. Gov’t (green leasing)
      • 32. USGBC (green property mgt cert)
      • 33. Madison, WI (local dollars)
      • 34. MIT, Oberlin, UNC, Furman, Stanford, Liberty, Bates, etc.
      • 35. Alexandria VA School system (healthy schools)
      • 36. State NC (project green 156)
      • 37. Faith Based Organizations (social entrepreneur)
      What’s Going On Out There
    • 38. U.S. States RPS Targets
    • 39. A definition:
      An alignment of an organizations’
      products, services & processes with
      expanded stakeholder expectations
      resulting in a re-definition of profit.
      Profit=economic +environmental + social value
      realizedthrough optimal utilization of
      natural & social capital
      Corporate Sustainability
    • 40. What’s Going On Out There
      • Mattel Corporation (logistics programs)
      • 41. Safeway Stores (Renewable energy)
      • 42. Wal-Mart (Green Products, renewable energy)
      • 43. Nike (new product design)
      • 44. Fruit of Loom (waste water)
      • 45. Lowes (LfP GBM)
      • 46. Marriott (CY Design)
      • 47. KKR & EDF (Portfolio Best Practices)
      • 48. UMMC Hospital System (weekend audits)
      • 49. UPMC (healthy children)
      • 50. Grove Park Inn (waste)
      • 51. Carnhagan Car Wash (water reuse)
      • 52. Shorebank (Community model)
      • 53. Bank of America SC/NC (100+ cool roof)
      • 54. South G’ville Fire Dept (water re-harvesting)
      • 55. Jarden Process Solutions (packaging)
      • 56. Cox Wood (renewable energy)
      • 57. Hartness Intl (LCM)
    • The concept of sustainability is gaining traction
      Any miscalculation or misjudgment can have serious
    • 62. What is driving Sustainability?
      New Paradigm emerging realization that:
      • waste reduction
      • 63. energy efficiency
      • 64. pollution prevention
      • 65. product innovation (naturally)
      • 66. social responsibility-equity
      make economic and social sense!
    • 67. Some argue it’s just a re-badging or extension of Lean manufacturing
      Continuous improvement: increasing efficiency, reducing waste, easing environmental impact, and boosting workplace safety
      Is Sustainability Something New?
    • 68. Others argue lean is precursor to sustainability
      Much larger context and external issues:
      • resources & constraints
      • 69. government regulation
      • 70. societal intervention & responsibility
      • 71. marketing strategies
      • 72. expanded profit definition
      • 73. shareholder value/linkage
      Is Sustainability Something New?
    • 74.
      • Ignore---no top manager in CJO role
      • 75. Adhere---doing minimally required
      • 76. Lip Service---remedially oriented
      • 77. Strategic---strategic positioning
      How are Businesses dealing with Sustainability ?
      Modest Efforts in terms of compliance, employee volunteerism and corporate philanthropy
      Motivating force for change in processes & positioning Core drivers/practices to insure value
    • 78. Strategic Positioning via Sustainability
      Moving from a passive cost-based
      mind set to building
    • 79. Two Legs and One of Three Outcomes
      Do it Better or Do it Different
      Increase Revenues, Decrease Costs or Build Good Will
      Strategic Advantage
      It can be price, quality, service, innovation, technology, process, affinity, etc.
    • 80. One strategy that can leverage all (3) outcomes:
      Increase revenues
      Decrease costs
      Build value
      Ideal Strategic Advantage
    • 81. By addressing both sides of the
      Sustainability Equation
      Sustainability Strategy: How is Strategic Advantage being built?
    • 82. Minimally define and alter
      as well as
      Innovative business processes, products/services and life cycles
      Production Side
      Strategy 1x lower operating cost/cost-structures
      3X build value
    • 83. Re-thinking sustainable consumption in terms of “experience”:
      (3) three broad categories
      1st Innovation
      2nd Choice Influencing
      3rd Choice Editing
      Consumption Side
      Moving from Strategy 1x lower costs to
      2X generate new revenues
    • 84. Consumers Choices Defined by Innovation, Editing and Influence
    • 85. Extended Producer Responsibility or Product Stewardship
      More than 21 States have joined together to enact 50 product stewardship laws addressing 7 products in the United States
    • 86.
      • No one size or approach fits all business cases
      • 87. Strategy is half the game execution is the other half
      • 88. Societal case doesn’t always equal business case
      • 89. Opportunity still trumps responsibility
      • 90. Finding or driving systemic value requires more than low-level fruit
      • 91. Measuring and reporting can create culture
      • 92. Management as process versus a program insures change
      How is Sustainability defined & implemented: The Furman Strategic Framework Approach
    • 93. 1st What shade of green is best ?
      Internal/External considerations, goals & alignment
      2nd When & How best to move into this area ? Shift bench-marks & stakeholder engagement
        3rd What to target? How to measure and report?
      Issues mapping and SMS Reporting
        4th What processes or tools to use? How best to think and act to insure on-going success?
      Footprints, audits, value-streams, systems thinking and process management
      How is Sustainability defined & implemented: The Furman Strategic Framework
    • 94. Sustainability Business Tools/Processes
      • Foot printing, Auditing & Value-Stream assessment
      • 95. Life-cycle Management
      • 96. Sustainable Product-Service-Process Design
      • 97. Process & Label Certification
      • 98. Green Product Marketing
      • 99. Environmental Managerial Accounting
    • Foot Printing, Mapping, Auditing & Value-Streams
      Activity or Area: Energy
      Current State (Bench-mark)
      Sustainable State
      Future (Minimization/Reduction)
    • 100. Life Cycle Analysis: Product Decisions, Design & Management
      McDonough & Braungart
      Biomimicry Institute
    • 101. Process and Label Certification
      400+ Labels world-wide and growing
    • 102. Green Product & Service Marketing
    • 103. Green Accounting & Reporting
      • Managerial Accounting Processes
      • 104. Activity Based Cost Accounting
      • 105. Consultancy
      • 106. Certification
      • 107. Reporting Practices
    • What is the business case for aSustainability strategy?
      • Lower risk (lower costs)
      • Increase opportunities (drive revenues)
      New products/services
      New target markets
      Higher margin products/services
      • Build a stronger balance sheet (increase leverage)
      Good will
      Corporate valuation
      • Laws and Regulation (increasing)
      Proactive versus Reactive
    • 108.
    • 109. Sustainability Tactic or Strategy
      “Green Organization” concept is evolving
      Program: Strategy:
      Feeling Good Measuring Good
      Recycling Life-cycle Decision making
      Nice to do Need to do
      Image Building Brand Integration
      Telling the Customer Teaching the Customer
      Ignore natural cycles Mimic natural cycles
      Human Resources Human Capital
      Organization as machine Organization as brain
      Shareholder Stakeholder
      CSR Adherence Embedding CSR
    • 110. Sustainability: CPA Roles and Competencies
    • 111. Revenues
      Operating Costs
      Good Will/Valuation
      SustainabilityTriple Bottom Line Strategy
    • 112. Threat or Opportunity
      Tactic or Strategy
      Ignoring sustainability trends
      can impede ability to achieve let alone compete.
      Do you have a plan?!