Mono-cropping is endangering genetic diversity 20 plants now supply 80% of humanity’s food Source: IDRC Briefing Did you know?!
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
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?!
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?!
Did you know?! Major Non-Renewable Resources are depleting world-wide: Antimony Barium Bismuth Cobalt Gallium Manganese Nickel Platinum Titanium Zinc What does this mean? Computers, Communication, Healthcare and Solar power Source: Annual Vital Signs Report World Watch Institute & U.S. Geological Association
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: soil water rainfall impacting local health and eco-system survivability Source EPA
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
$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?!
The Business Paradigm Many Businesses & Organizations still operate with a world-view that has not changed since Industrial Revolution
Natural resources > Labor was < The Paradigm People limiting factors of production
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: ? WASTE U.S. Economy 4.5 lbs. per person per day = .821 tons per person per year Source: US EPA
How do we manage waste ?! Current or Old Paradigm was "end-of-the-pipe" remediation efforts
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
Paradigm is Shifting Natural resources < Labor is > Natural resources limiting factors of production
Next “Industrial Revolution”, like the first, will be in response to: changing patterns of scarcity and influenced behavior Natural Capital—Sustainability The New Paradigm
Sustainability Another Word for: Corporate Social Responsibility Equity(able) Environmentalism Green Lean Sustainable Development
Core to contemporary Sustainability are the Four (E’s) What is Sustainability?
1st E Ecology & Environment 2ndE Economy & Employment 3rd E Equity & Equality (social) 4th E Education 4 E’s or Core to Sustainability
Fad Movement Revolution Sustainability: How Real?
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). Sustainability
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
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?
Others argue lean is precursor to sustainability Much larger context and external issues:
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
Strategic Positioning via Sustainability Moving from a passive cost-based mind set to building Strategic Advantage
Two Legs and One of Three Outcomes Do it Better or Do it Different Increase Revenues, Decrease Costs or Build Good Will Strategic Advantage Outcomes It can be price, quality, service, innovation, technology, process, affinity, etc.
One strategy that can leverage all (3) outcomes: Increase revenues Decrease costs Build value Ideal Strategic Advantage
By addressing both sides of the Sustainability Equation Production And Consumption Sustainability Strategy: How is Strategic Advantage being built?
Minimally define and alter Eco-footprint as well as Innovative business processes, products/services and life cycles Production Side Strategy 1x lower operating cost/cost-structures to 3X build value
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
Consumers Choices Defined by Innovation, Editing and Influence
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
Management as process versus a program insures change
How is Sustainability defined & implemented: The Furman Strategic Framework Approach
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
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
Sustainability: CPA Roles and Competencies BIG Public Practice
Revenues Operating Costs Good Will/Valuation SustainabilityTriple Bottom Line Strategy
Threat or Opportunity Tactic or Strategy Ignoring sustainability trends can impede ability to achieve let alone compete. Do you have a plan?! Sustainability