Sustainability - Draft

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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?
  • Sustainability - Draft

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

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