Understand the Game life supporting resources declining consumption of life supporting resources rising © 2005 The Natural Step / Forum for the Future: All rights reserved

E conomy / P rofits Sustainable business Profits Taxes, R&D Jobs Expenditures Training Fair trade Core values E nvironment / P lanet Eco-Efficiency Manufacturing efficiencies Operations efficiencies Product efficiencies Smart design Cradle-to-cradle, take-back Beyond compliance Restorative to nature E quity / P eople Ethical business Internal employees Human rights Health & Safety Empowerment Respect, Caring Local community Rest of the world A Sustainable future considers

E conomy / P rofits

Sustainable business

Profits

Taxes, R&D

Jobs

Expenditures

Training

Fair trade

Core values

E nvironment / P lanet

Eco-Efficiency

Manufacturing efficiencies

Operations efficiencies

Product efficiencies

Smart design

Cradle-to-cradle, take-back

Beyond compliance

Restorative to nature

E quity / P eople

Ethical business

Internal employees

Human rights

Health & Safety

Empowerment

Respect, Caring

Local community

Rest of the world

Drivers of change 10 Market Forces Business Risks 5 Mega-Issues 5 Demanding Stakeholders Climate Change Green Consumers Market Risks Balance Sheet Risks Operating Risks Capital Cost Risks Difficult access to capital Pollution & Health Activist Shareholders Globalization Backlash Civil Society / NGOs Energy Crunch Government Regulators Erosion of Trust Financial Sectors

BIG Change is coming Unchartered rising Expectations Reputation / License to Operate 10 Market Forces 5 Mega-Issues 5 Demanding Stakeholders Climate Change Green Consumers Pollution & Health Activist Shareholders Globalization Backlash Civil Society / NGOs Energy Crunch Government Regulators Erosion of Trust Financial Sectors

NZ’s inconvenient truth

From concerned citizen (remember save Manapouri) To concerned consumer (ethical & green purchasing) Kiwis are shifting their focus…

Kiwis are shifting their focus…

Don’t get caught in the detail Details/Complexity = leaves Fundamental Principles = trunk and branches © 2000 The Natural Step. All rights reserved.

housing parks & recreation culture waste & infrastructure transport heritage Building design social economic development water water solid waste public transport road & vehicles affordability site design soil agriculture biodiverisity business location jobs social cohesion consents human needs heath land use & regulations natural resources bylaws heating cycle paths bus fuel choice road standards financing diversity spatial planning orientation energy water use materials landscaping Eco-ind. parks Sports programs traditions supply purchasing fluoridation quality energy recycling disposal minimisation treatment pedestrians walkways playing fields Local history heritage sites wahi tapu zoning air quality covenants watersheds maintenance tree protection agri. zoning. incentives Ind. zoning pest control consents subdivision development agreements regeneration child facilities parks

Copyright © 2004 The Natural Step Seeing a part of the picture

housing parks & recreation culture infrastructure transport heritage Building design social economic development water water solid waste public transport road & vehicles affordability Site design soil agriculture biodiverisity business location jobs social cohesion consents human needs heath land use and regulations natural resources CHAOS bylaws heating cycle paths bus fuel choice road standards financing diversity spatial planning orientation energy water use materials landscaping Eco-ind. parks Sports programs traditions supply purchasing fluoridation quality energy recycling disposal minimisation treatment pedestrians walkways playing fields Local history heritage sites wahi tapu zoning air quality covenants watersheds maintenance tree protection agri. zoning. incentives Ind. zoning pest control consents subdivision development agreements regeneration child facilities parks

Chaos

A Perfect Storm … of Opportunities Innovation Productivity Growth Brand Image Competitive Advantage $aving$ Revenue Business Value 10 Market Forces 5 Mega-Issues 5 Demanding Stakeholders Climate Change Green Consumers Pollution & Health Activist Shareholders Globalization Backlash Civil Society / NGOs Energy Crunch Government Regulators Erosion of Trust Financial Sectors

Reduced recruiting costs Reduced attrition costs Increased employee productivity Reduced expenses at commercial sites (energy, water, consumables) Increased revenue / market share Reduced risk, easier financing Smart business practice Smart business Usual focus

Reduced recruiting costs

Reduced attrition costs

Increased employee productivity

Reduced expenses at commercial sites (energy, water, consumables)

Increased revenue / market share

Reduced risk, easier financing

Smart business practice