Clean Up or Close Up Going Green Isn’t Greener Staying Brown Isn’t an Option

The World Wakes Up to Costs of Carbon (Dioxide) 150 USD Oil Diesel and gas inflation brought calls for change that drowning polar bears could not Pressure on governments to regulation and subsidize solutions Pressure on industry to change - to reduce waste and increase efficiency Pressure on consumers to change habits – public transport, bicycles, and even walking! Treehuggers and yuppies unite! Global Warming Al Gore (and his drowning polar bears) catalyze global awareness Inconvenient Truth and 11 th hour become award winning movies Citizens begin learning about “carbon footprint”/ Schools begin teaching environmentalism TV Shows on CNN & Discovery highlight human impact on the environment while CNBC covers investment opportunities Children tell their parents to save the word Cleantech Investment Investment in clean technology Renewable energy (wind and solar) and alternative fuel enter consumer investor portfolio Vernacular/ technology are enter mainstream conversations on television Cleantech investment books become best sellers Economics of and focus on cleantech firms improves with each dollar rise in oil

Diesel and gas inflation brought calls for change that drowning polar bears could not

Pressure on governments to regulation and subsidize solutions

Pressure on industry to change - to reduce waste and increase efficiency

Pressure on consumers to change habits – public transport, bicycles, and even walking!

Al Gore (and his drowning polar bears) catalyze global awareness

Inconvenient Truth and 11 th hour become award winning movies

Citizens begin learning about “carbon footprint”/ Schools begin teaching environmentalism

TV Shows on CNN & Discovery highlight human impact on the environment while CNBC covers investment opportunities

Children tell their parents to save the word

Investment in clean technology

Renewable energy (wind and solar) and alternative fuel enter consumer investor portfolio

Vernacular/ technology are enter mainstream conversations on television

Cleantech investment books become best sellers

Economics of and focus on cleantech firms improves with each dollar rise in oil

Events that are Changing China Labor Scandal Immediate Impact Domestic and International press coverage 45,000 investigators sent to Shanxi Public acknowledgement of system failure and call for change by party Product Recalls International witch hunt and tit-for-tat Economic impact to Chinese manufacturers Questions at home about products surface Immediate Impact Immediate Impact Environmental awareness took a quantum leap Domestic / International press coverage National support and sympathy for affected Taihu Lake 5.12 Earthquake Immediate Impact 24/ 7 news coverage – with citizen journalists first to report (twitter) Intense corporate pressure to donate and manage messaging carefully First time many firms experienced the “mass” media 24/7 Full press coverage on TV, newspaper, blogs, &twitter Public awareness of problems with food industry, and call for changes Ongoing investigative reporting into other areas / other companies Immediate Impact Milk Scandal

Immediate Impact

Domestic and International press coverage

45,000 investigators sent to Shanxi

Public acknowledgement of system failure and call for change by party

International witch hunt and tit-for-tat

Economic impact to Chinese manufacturers

Questions at home about products surface

Immediate Impact

Environmental awareness took a quantum leap

Domestic / International press coverage

National support and sympathy for affected

Immediate Impact

24/ 7 news coverage – with citizen journalists first to report (twitter)

Intense corporate pressure to donate and manage messaging carefully

First time many firms experienced the “mass” media

24/7 Full press coverage on TV, newspaper, blogs, &twitter

Public awareness of problems with food industry, and call for changes

Ongoing investigative reporting into other areas / other companies

Solar Panels Hybrid Cars Wind Mills LEED Certifications Double-side Printing Organics Carbon Offsets Green Jobs China will lead from a need for clean air, water, and food… Framing Sustainability Populations & Labor Consumer Safety Urban Planning Urbanization Food & Agriculture Landfills & eWaste Over-packaging Healthcare Managed Resources Traffic and Transport Healthcare

Making the Case The Door was open for change… Consumers were becoming citizens Citizens were become activists Governments were responding The Business Case For Sustainability was made

The Door was open for change…

Consumers were becoming citizens

Citizens were become activists

Governments were responding

Clean Technology Economics Built Environment Manufacturing Resources Civil Society Social Services Land Use Renewable Materials Food & Agriculture Forests and Parks Bodies of Water Labor Pools Waste Management Air Quality Life Cycle Analysis Closed Loop mfg. Product Design Packaging/ Waste Logistics/ Transport Ethical Supply Chain Quality Control & Assurance Recycling & eWaste Financial Markets Green Economies MFG Vs Services Urbanization Rural/ Urban Gap Consumer Spending Green Consumers Urban Planning Building Materials Urban Transport Greenspace Energy/ Water efficiency Build Retrofitting Building Operation Affordable Housing Smartgrid Biofuels Transportation Waste-to-energy Water Filtration Clean Coal Renewable Energy Carbon Offset/ Trading Civic Engagement Philanthropy NGO Development & Capacity Social Enterprises Cultural Preservation Consumer Safety Community Program Healthcare Education Poverty Alleviation Elderly Care Job Training Rehabilitation & Counseling Financial Services

Land Use

Renewable Materials

Food & Agriculture

Forests and Parks

Bodies of Water

Labor Pools

Waste Management

Air Quality

Life Cycle Analysis

Closed Loop mfg.

Product Design

Packaging/ Waste

Logistics/ Transport

Ethical Supply Chain

Quality Control & Assurance

Recycling & eWaste

Financial Markets

Green Economies

MFG Vs Services

Urbanization

Rural/ Urban Gap

Consumer Spending

Green Consumers

Urban Planning

Building Materials

Urban Transport

Greenspace

Energy/ Water efficiency

Build Retrofitting

Building Operation

Affordable Housing

Smartgrid

Biofuels

Transportation

Waste-to-energy

Water Filtration

Clean Coal

Renewable Energy

Carbon Offset/ Trading

Civic Engagement

Philanthropy

NGO Development & Capacity

Social Enterprises

Cultural Preservation

Consumer Safety

Community Program

Healthcare

Education

Poverty Alleviation

Elderly Care

Job Training

Rehabilitation & Counseling

Financial Services

Supply Chain Management Council Member Experiences Areas in need of Encouragement Switching to Aerodynamic Trucks Switching to More Efficient Modes Switching to Carriers w/ Green Initiative Areas That are Encouraging Reduction in Packaging Materials Selecting Recylcable Packaging Materials Switching to Reuseable Containers

Reasons for Change. Reasons Prohibiting Change Why Firms Are Not… Lack of Expertise. Lack of Incentives. Lack of Regulation??? Why Firms Are Going “Green” Strategic Interests Supplier Performance Customer Satisfaction

Leading the Pack The Big Bang: Wal-Mart October 2008 Announce Sustainability Revolution Comprehensive effort across supply chain and stores Alternative Energy, Transportation, Packaging, Recycling Not spontaneous. It was planned for years. Wal-Mart is Serious Others will be forced to follow 2008 Wal-Mart Home Entertainment Design Challenge Great design that attracts consumers. Product innovation that reduces the environmental impact for its product category. Packaging design that facilitates reuse and recycling, reduces waste, and reduces or eliminates the use of toxic materials. HP Reduces packaging 97% Breaking Barriers, Changing Habits, & Encouraging Change

October 2008 Announce Sustainability Revolution

Comprehensive effort across supply chain and stores

Alternative Energy, Transportation, Packaging, Recycling

Not spontaneous. It was planned for years. Wal-Mart is Serious

Others will be forced to follow

2008 Wal-Mart Home Entertainment Design Challenge

Great design that attracts consumers.

Product innovation that reduces the environmental impact for its product category.

Packaging design that facilitates reuse and recycling, reduces waste, and reduces or eliminates the use of toxic materials.

HP Reduces packaging 97%

Ways to React Some Firms will see new opportunity Interface Flooring Haworth Nike Going the Long Way Some Firms will start with a single product BYD HP Esquel Low Hanging Fruit Some Firms will be sustainable from day 1 Burt’s Bees Bambu Home Shokay Starting from Scratch ? Others Will Wait

Some Firms will see new opportunity

Interface Flooring

Haworth

Nike

Some Firms will start with a single product

BYD

HP

Esquel

Some Firms will be sustainable from day 1

Burt’s Bees

Bambu Home

Shokay

The business case for sustainability has been made Environmental and economical sustainability are not separate items Consumers Have Changed – and So Have Their Expectations Consumers are becoming citizens, and citizens are becoming active Consumer pressure on industry will only grow stronger Global Supply Chains, Must Change… Will Change Environmental, labor, raw materials, water, and energy constraints have all changed Changes will begin with design and end with product take back Entire organization will be involved in the process Solutions Exist, Cost Savings Exist, and Options are Readily Available Technology gains are growing – energy, transportation, etc Commoditization of parts, components, and technologies reduces cost of investment If you don’t make the changes willingly, you will be force to through competition, regulation, or consumer action. Takeaways

The business case for sustainability has been made

Environmental and economical sustainability are not separate items

Consumers Have Changed – and So Have Their Expectations

Consumers are becoming citizens, and citizens are becoming active

Consumer pressure on industry will only grow stronger

Global Supply Chains, Must Change… Will Change

Environmental, labor, raw materials, water, and energy constraints have all changed

Changes will begin with design and end with product take back

Entire organization will be involved in the process

Solutions Exist, Cost Savings Exist, and Options are Readily Available

Technology gains are growing – energy, transportation, etc

Commoditization of parts, components, and technologies reduces cost of investment

If you don’t make the changes willingly, you will be force to through competition, regulation, or consumer action.

What’s Holding You Back? Learn More : All Roads Lead to China www.allroadsleadtochina.com Collective Responsibility www.collectiveresponsibility.org Cleaner Greener China www.cleanergreenerchina.com Follow my Tweet! All Roads Lead to China @allroads Collective Responsibility @chinaCSR Cleaner Greener China @greenerchina Contact Me! Richard Brubaker [email_address]

Learn More :

All Roads Lead to China www.allroadsleadtochina.com

Collective Responsibility www.collectiveresponsibility.org

Cleaner Greener China www.cleanergreenerchina.com

Follow my Tweet!

All Roads Lead to China @allroads

Collective Responsibility @chinaCSR

Cleaner Greener China @greenerchina

Contact Me!

Richard Brubaker [email_address]