What's Brewing: Embedding a Unified Business Case Approach to Drive Product, Brand, Marketing and Operations at the Same Time

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These slides were presented at the Sustainable Brands London 2013 Conference, to view the associated video or listen to the audio of the presentation please visit www.sustainablebrands.com/digital_learning/packaging/whats-brewing-embedding-unified-business-case-approach-drive-product-bran

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What's Brewing: Embedding a Unified Business Case Approach to Drive Product, Brand, Marketing and Operations at the Same Time

  1. 1. Sustainability WHO CARES?!? Jim Hanna director environmental impact starbucks coffee company 2
  2. 2. A Dilemma… The term “Business case for sustainability” has already become cliché Those that get it – moved on to brand engagement, innovation, story-telling, transparency, circular economy, shared value, etc. 3
  3. 3. But The Business Case Still Matters Impact The footprint I get it! 4
  4. 4. Our Challenge… • • To the middle of the bell curve, SB conversations are still periphery at best While we look over the horizon, we must also look back 5
  5. 5. Our Challenge… • • As we adopt a new language, we must remain bilingual to those not yet literate Even the most forward thinking companies must continuously make the business case internally 6
  6. 6. Our Company 60 million customers/week 17,000 retail stores ~200,000 partners 62 countries Starbucks Confidential – INTERNAL USE
  7. 7. At Starbucks, real sustainability = climate mitigation As a company that relies on a specialty agricultural product, climate change poses a potential direct threat to our business Starbucks Confidential – INTERNAL USE
  8. 8. 75% of Starbucks controllable environmental footprint is from the operation of our stores Starbucks Confidential – INTERNAL USE
  9. 9. roasting operations, refrigerants, aircraft, nitrous oxide 25% 75% Store energy use Starbucks Confidential – INTERNAL USE
  10. 10. Green Building Pledge All company operated new stores will be green certified All company operated stores will be 25% more energy efficient, use 25% less water, use 100% renewable energy, use locally-sourced & salvaged materials Starbucks Confidential – INTERNAL USE
  11. 11. Where Do We Focus? Starbucks Business Drivers for Sustainability Reduced operating costs Capacity building in our supply chain Starbucks Confidential – INTERNAL USE
  12. 12. Where Do We Focus? Starbucks Business Drivers for Sustainability Larger share of emerging customer demographic Greater brand love & existing customer loyalty Starbucks Confidential – INTERNAL USE
  13. 13. Where Do We Focus? Starbucks Business Drivers for Sustainability Employer of choice & increased retention A baseline of credibility that provides: a negotiating tool with policymakers mitigated risk from NGOs and media added marketing dimension Starbucks Confidential – INTERNAL USE
  14. 14. Where Do We Focus? Starbucks Business Drivers for Sustainability A license to operate Starbucks Confidential – INTERNAL USE
  15. 15. A Couple of Examples… making the business case our stores 12/16/09 © STARBUCKS COFFEE COMPANY 2009. CONFIDENTIAL – FOR INTERNAL USE ONLY our cups Starbucks Confidential – INTERNAL USE
  16. 16. Green Building Lesson Learned: speak the language of business
  17. 17. Initial focus on green metrics & values Core value of the company Part of our DNA & mission Reduce our carbon footprint
  18. 18. Reset focus to the business Core Value of the company Part of our DNA & mission Reduce our carbon footprint
  19. 19. Recycling Lesson Learned: Perception = Reality (and you’d better not ignore it)
  20. 20. 4 billion SBUX cups 21
  21. 21. 4 billion SBUX cups 500 billion globally 22
  22. 22. roasting operations, refrigerants, aircraft, nitrous oxide cups 25% 75% Store energy use Starbucks Confidential – INTERNAL USE
  23. 23. Where Do We Focus? Starbucks Business Drivers for Sustainability A license to operate Fukuoka Ohori Park Fukuoka City, Japan Starbucks Confidential – INTERNAL USE
  24. 24. License to Operate – Driven by Customer & Stakeholder Perceptions Although packaging waste is small part of our footprint, it is Starbucks #1 environmental issue to our customers and stakeholders Proactively addressing cup recycling is the price of entry to give us credibility to discuss more significant environmental leadership What’s your pain point?
  25. 25. Starbucks Goal – This Ends by 2015 1. Increase use of personal mugs 2. Increase ceramics in-store 3. Customer facing recycling in all company-owned stores 4. Recyclable single serve cups – wherever the cup goes
  26. 26. Some Final Advice from the coffee guy… Find your own drivers to sustainability (your “who cares”)
  27. 27. Some Final Advice from the coffee guy… Speak the language of business - try an exercise using no green words Demonstrate how sustainability supports business goals, not vice versa
  28. 28. Some Final Advice from the coffee guy… Figure out your unique niche – where can you lead that no one else can? Acknowledge and celebrate others’ leadership
  29. 29. Some Final Advice from the coffee guy… Choose transparency: invite media, NGOs, policymakers and competitors on your journeys
  30. 30. Some Final Advice from the coffee guy… Don’t worry about free riders Help the middle of the bell curve see the light

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