Developing Smarter Corporate                              Strategies                              Setting the scene…      ...
Developing Smarter corporate strategies                                          • What do we mean by                     ...
Conventional approaches in business strategy                                               • Generic strategies           ...
Some limitations…                                         • Assumptions                                         • External...
Business drivers we cannot ignore…Energy                                                                                  ...
Towards smarter business strategies?                                            •   Focus on the long-term                ...
Towards a circular economy?In addition to Life Technologies & InterfaceFLOR…Ford: Model U Concept SUV incorporating re-   ...
So much todo, and so little time…                                                                      “Levels of greenhou...
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SB The Event 2012 M Townsend Final 220512

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A \'rough guide\' to developing smarter corporate strategies

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SB The Event 2012 M Townsend Final 220512

  1. 1. Developing Smarter Corporate Strategies Setting the scene… SustainabilityLive! 22 May 2012 Michael Townsend, CEO Earthshine© earthshine solutions ltd.
  2. 2. Developing Smarter corporate strategies • What do we mean by smarter corporate strategies? • How are these different? • Why is this important? • Our job today…© earthshine solutions ltd. 2
  3. 3. Conventional approaches in business strategy • Generic strategies – Cost leadership – Differentiation – Focus strategy • Alternative – Withdrawal – Consolidation – Market penetration"The greatest danger in times of – Product developmentturbulence is not the turbulence; it is – Diversificationto act with yesterdays logic.” Peter Drucker – Acquisition – Alliances© earthshine solutions ltd. 3
  4. 4. Some limitations… • Assumptions • Externalities • Resource availability/cost • Waste/disposal • Stranded assets • Total cost of ownership/affordability • Value to society“No amount of orthodox strategy, innovation, or competition – all premised oneconomic harm – can help businesses, countries, economies, or the worldreignite prosperity in the twenty-first century.” Umair Haque (New Capitalist Manifesto, 2011)© earthshine solutions ltd. 4
  5. 5. Business drivers we cannot ignore…Energy Climate Change Economic VolatilityEcological Footprint Resource ScarcityGlobal Ecological Footprint, 2011 (WWF)© earthshine solutions ltd. Global Commodity Price Indices, 2005-2011, 2000 = 100 (Source: World Bank). 5
  6. 6. Towards smarter business strategies? • Focus on the long-term • Sustainability integrated • Resilient business models • Sustainable consumption • Eco-efficient in delivery • Circular economy thinking • Shared/blended value • Higher purpose • Towards sustainable capitalism? The upside… “High Sustainability companies significantly • Longevity & resilience outperform their counterparts over the long- • Green growth term, both in terms of stock market and • Enhance profitability accounting performance.” • Long-term shareholder value Harvard Business School, May 2012© earthshine solutions ltd. 6
  7. 7. Towards a circular economy?In addition to Life Technologies & InterfaceFLOR…Ford: Model U Concept SUV incorporating re- M&S are Shwopping: With Oxfam to resell, reuse orusable, recyclable and compostable parts. recycle clothes, & help support people living in poverty.Wightsails: Recycling old sails into a range of Patagonia: ‘Common Threads’ initiativenew products. encourages customers to reduce, repair, re-use &© earthshine solutions ltd. recycle their clothing & equipment. 7
  8. 8. So much todo, and so little time… “Levels of greenhouse gases are higher than the worst case scenario outlined by climate experts just four years ago.” Guardian.co.uk, 4 Nov 2011 “World headed for irreversible climate change by 2017.” IEA World Energy Outlook 2012 “Only 3% believe that companies are succeeding in fully integrating sustainability.” Sky Future Leaders Study 2011 “We will need the equivalent of two planets by 2030.” WWF Living Planet Report 2012 “We have only 5,000 3,845 days to act!” “I never did see the business case for being unsustainable.” Joel Makower, Founder of GreenBiz.com Ray Anderson, Founder & Former Chairman of Interface Inc www.earthshinesolutions.com© earthshine solutions ltd. www.sustainablebusinesslab 8 @mike_earthshine

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