Your SlideShare is downloading. ×
How Human Impact Drives Profit: Higher Returns for Both Stakeholders and Shareholders.
How Human Impact Drives Profit: Higher Returns for Both Stakeholders and Shareholders.
How Human Impact Drives Profit: Higher Returns for Both Stakeholders and Shareholders.
How Human Impact Drives Profit: Higher Returns for Both Stakeholders and Shareholders.
How Human Impact Drives Profit: Higher Returns for Both Stakeholders and Shareholders.
How Human Impact Drives Profit: Higher Returns for Both Stakeholders and Shareholders.
How Human Impact Drives Profit: Higher Returns for Both Stakeholders and Shareholders.
How Human Impact Drives Profit: Higher Returns for Both Stakeholders and Shareholders.
How Human Impact Drives Profit: Higher Returns for Both Stakeholders and Shareholders.
How Human Impact Drives Profit: Higher Returns for Both Stakeholders and Shareholders.
How Human Impact Drives Profit: Higher Returns for Both Stakeholders and Shareholders.
How Human Impact Drives Profit: Higher Returns for Both Stakeholders and Shareholders.
How Human Impact Drives Profit: Higher Returns for Both Stakeholders and Shareholders.
How Human Impact Drives Profit: Higher Returns for Both Stakeholders and Shareholders.
How Human Impact Drives Profit: Higher Returns for Both Stakeholders and Shareholders.
How Human Impact Drives Profit: Higher Returns for Both Stakeholders and Shareholders.
How Human Impact Drives Profit: Higher Returns for Both Stakeholders and Shareholders.
How Human Impact Drives Profit: Higher Returns for Both Stakeholders and Shareholders.
How Human Impact Drives Profit: Higher Returns for Both Stakeholders and Shareholders.
How Human Impact Drives Profit: Higher Returns for Both Stakeholders and Shareholders.
How Human Impact Drives Profit: Higher Returns for Both Stakeholders and Shareholders.
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

How Human Impact Drives Profit: Higher Returns for Both Stakeholders and Shareholders.

563

Published on

Presentation by Paul Herman, CEO + Founder - HIP Investor Inc - USA.

Presentation by Paul Herman, CEO + Founder - HIP Investor Inc - USA.

Published in: Economy & Finance
0 Comments
3 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
563
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
27
Comments
0
Likes
3
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. How Human Impact Drives Profit: Higher Returns for Both Stakeholders + Shareholders Triple Bottom Line Investing (TBLI) Paris, France - Europe 2007 R. Paul Herman CEO + Founder
  • 2. Today’s Discussion
    • Who We Are
    • Unfulfilled Stakeholder Expectations
    • The HIP Framework & Scorecard
    • How to Deliver Human Impact + Profit
    ©2007 All rights reserved
  • 3. Our Cross-Sector Experience Is Global Sara ©2007 All rights reserved
  • 4. Today’s Discussion
    • Who We Are
    • Unfulfilled Stakeholder Expectations
    • The HIP Framework & Scorecard
    • How to Deliver Human Impact + Profit
    ©2007 All rights reserved
  • 5. Executives See Sustainability As Mission-Critical, But See a Large Gap In Capability ©2007 All rights reserved Source: McKinsey survey of 4,238 executives, July 2006
  • 6. Customers Use Their Dollars to “Vote”
    • REPEL THE NEGATIVE
    • “ What have you ever done in response to a firm’s behavior you considered against the best interest of society ?”
    • 67% took some form of action
    • 49% refused to BUY products
    • 38% recommended others NOT buy
    • 19% refused to INVEST in that stock
    Source: Fleishman Hillard / National Consumer League consumer survey, 2006/07
    • SEEK THE POSITIVE
    • 65% want to buy products & services from firms that deliver social good
      • How firms treat employees & the environment and NOT its charity
    • 47% have researched a company on the Internet to check their social or environmental performance
    • 66% see social impact as a strong indicator of whether to invest in a stock
    Source: McKinsey survey of 4,063 consumers, July 2006 ©2007 All rights reserved
  • 7. Staff Looking to Employers for Purpose
    • “ Commitment to social issues” is a major factor for Americans deciding…
    77% 66% 72% Source: ConeCause survey of 1096 consumers in 2001, 2004 and 2007 ©2007 All rights reserved
  • 8. Investors Want Quantitative Human Impact Measures Linked to Profit
    • 71% of investors want info on a company’s human, social and environmental performance
      • 100% of financial advisors to social investors desire quantified “units of output” of companies’ impact on society
    • Nearly 10% of assets under professional management ($2.3 Trillion) have an active social-investment mission
      • 263% growth over past decade
    • Trusted financial brands set benchmarks
      • FTSE4Good, Dow Jones Sustainability Index
    • Equator Principles (social/environmental criteria) adopted by global banks providing 80% of project finance capital
    ©2007 All rights reserved
  • 9. HIP Companies Outperform Benchmarks GS Sustain outperforms +25% beyond MSCI World in 22 months ©2007 All rights reserved
  • 10. Today’s Discussion
    • Who We Are
    • Unfulfilled Stakeholder Expectations
    • The HIP Framework & Scorecard
    • How to Deliver Human Impact + Profit
    ©2007 All rights reserved
  • 11. Solving Four Core Human Problems Leads to Sustainable, Profitable Growth ©2007 All rights reserved
  • 12. 1) Health: Products save lives …if affordable The PET image shows concentrations of cancer cells in a color spectrum just as weather radar shows varying concentrations of precipitation. The anatomical image generated by the CT scan acts as the 'map' showing physicians precisely where the cancer is located. The Discovery platform combines both of these images and like a television radar, pinpoints activity and location fused into one image. ©2007 All rights reserved
  • 13. 2) Wealth: Are all customers served? Pensions for Unemployed!
    • Investment banks & finance firms are launching new product lines:
    • ING : offers carbon reduction on auto leases ( € 5 monthly)
    • Citigroup: micro-finance lending unit is a full profit center & attracts global staff
    • Goldman Sachs : offers high-net-worth investment pools to low-income markets
    ©2007 All rights reserved
  • 14. 2b) Wealth: Increasing access to capital
    • Unbanked = 10% of US families; 10 million households
      • Frequently pay high fees relative to frequent transactions
    • New services increase wealth for customers:
      • Money in: Lower check cashing fees
      • Money out: Easier shopping at Wal-mart, car rentals, hotels
      • Transfers: Trusted remittances to family abroad
      • Investments: Access to ShareBuilder partnership
    ©2007 All rights reserved
    • … and more retailers are invading financial services
      • Home Depot: auto financing and insurance
      • Kroger: mortgages, home equity, pet insurance
  • 15. 3) Earth: Barclays Breathe-Free Card
    • Targets UK customers focused on climate change
      • In USA by comparison, 10 MM “dark greens” and 30 MM “light greens”
    • This segment values “green” characteristics, so card is made of eco-friendly materials
    • Connects existing practices (e-billing, online changes) with lower emissions brand promise
    • Also differentiates by donating half of profits to eco-projects (min. ₤ 1 MM; max. ₤5MM )
    ©2007 All rights reserved
  • 16. 4) Equality: Diverse Owners Add Value
    • Only a dozen US companies buy $1 billion or more from women- and ethnic-owned suppliers
      • Consumer : Altria, AT&T, P&G, Verizon, Wal-Mart
      • Auto : DaimlerChrysler, Ford, GM, Toyota USA
      • Industrial : IBM, Johnson Controls, Lockheed Martin
    • Innovation is the core benefit says P&G
      • “ A diverse organization (and supply chain) will out-think, out-innovate and out-perform a homogenous organization every time”
    ©2007 All rights reserved
  • 17. Today’s Discussion
    • Who We Are
    • Unfulfilled Stakeholder Expectations
    • The HIP Framework & Scorecard
    • How to Deliver Human Impact + Profit
    ©2007 All rights reserved
  • 18. “ Fast Company” magazine First Annual HIP Scorecard ©2007 All rights reserved
  • 19. How HIP Practices Deliver Profit
    • Five Core Areas Leading Examples Leading Firms
    • Vision 50% by 2015 AMD Zero by 2020 Interface
    • Measures 10-point balanced scorecard PG&E
    • Financials $10B, $20B, $50B revenue GE $400mm cost savings Interface +2% more; 40% less energy Liberty Property Solar tax credits Walgreens
    • Accountability Board committees; GE Performance targets for Intel VPs, managers, staff Herman Miller
    • Decision Making Approval / integration of United Tech’s
    • new product designs Nike
    These 5 disciplines increase both Human Impact + Profit delivering higher shareholder value and societal benefit ©2007 All rights reserved
  • 20. Drivers of HIP Revenue Differ By Firm
    • The more HIP Practices followed, the higher the share of revenue that delivers sustainable, profitable growth
    2006 Revenue Share Rated HIP – Segmented by Human Impact ©2007 All rights reserved
  • 21. How Will Your Portfolio Be HIP? ©2007 All rights reserved

×