Alternative titles: Sustainability will be the main driver of competition and growth Sustainability will define competition over the next decade and be the major source of growth for organisations At 2degrees, we help public and private sector organisations to accelerate the implementation of commercially effective sustainable business strategies. These strategies don’t just enable organisations to adapt to the new reality, they also drive revenue growth, reduce risk and deliver outstanding operational & financial efficiencies . Organisations that adopt these strategies develop common characteristics that give them a truly Sustainable Competitive Advantage. The benefits of a Sustainable Competitive Advantage and risks to Business As Usual create a compelling case for immediate action The benefits to organisations: Brand, reputation and CSR gains; Operational cost reduction; Operational efficiency gains; Supply chain cost and efficiency; Incremental revenues; New revenue streams; Return on engagement of staff The risks to BAU Compliance risks; Supply chain risks; Sustainable obsolescence; Staff recruitment and retention; Competitive risks; Brand and reputation risks; Investment risks
Marks & Spencer ( M&S ) is an international retailer , with over 895 stores in more than 40 territories around the world, over 600 in UK and 295 international.   The company, with its head office in the Waterside House in the City of Westminster , London , England ,   is the largest clothing retailer in the United Kingdom, as well as being an upmarket food retailer, and as of 2008, the 43rd largest retailer in the world.  Most of its domestic stores sell both clothing and food , and since the turn of the century it has started expanding into other ranges such as homewares, furniture and technology. t/o £9bn Plan A 5 year £200m investment By 2012, M&S’s plan calls for the company to: become carbon neutral, send no waste to landfills, extend sustainable sourcing, set new standards in ethical trading, and help customers and employees live a healthier lifestyle. the world’s most sustainable major retailer by 2015
Compliance/collaboration – very collaborative for many years with NGOs, WI, Oxfam – the advisory board set up by SB in 2006 Service growth/Commercialise + collaboration/– M&S energy + collaboration with Amazon to transform online Service growth re-invent – Home insulation service (from recycled clothing) Zero waste/reinvent – store design, dissolvable confectionary packaging, recycled bottles into fleeces, uniforms, insulation, stuffing Zero waste/collaborate – closed loop recycling Pilot in South West Monitor report reduce/compliance – 10 years of CSR best practice, 100% MSC Fish etc Monitor report reduce/commercialise – Fair trade sales growth, eco-store development, centralised energy management Monitor report reduce/re-invent – establishing the “How we do business” committee/governance, chaired by CEO Dematerialise/commercialise – Plastic bags charging, Re-usable bags sales, Packaging reduction, recyclable packaging, etc
11,000 professionals; 100 countries; 6,000+ organisations The global community of practice for Sustainable Business
<ul><li>What is the scope for driving growth through building a sustainable competitive advantage in your organization? </li></ul><ul><li>Where are organizations on the journey towards gaining a sustainable competitive advantage? </li></ul>Members are building Sustainable Competitive Advantage Progress on the Sustainability Journey Scope for Sustainable Competitive Advantage
Scope for gaining a Sustainable Competitive Advantage <ul><li>Businesses that focus on building Sustainable Competitive Advantage across the entire value chain: </li></ul><ul><li>Grow revenues </li></ul><ul><li>Reduce risks </li></ul><ul><li>Create operational & financial efficiencies . </li></ul><ul><li>Sources of Sustainable Competitive Advantage </li></ul><ul><li>Collaboration </li></ul><ul><li>‘ Zero Waste’ </li></ul><ul><li>Service innovation </li></ul><ul><li>Resilience </li></ul><ul><li>Measure, report & reduce </li></ul>
The Sustainability Journey Manage Compliance Phase 1 Commercialize Sustainability Phase 2 Re-invent Phase 3 Be on top of issues, risks and opportunities Realize the advantages for your organization Lead the solution for your sector/market Managing the impacts of your organization today Make sustainability the way you do things today Reinvent the way things are done Gateway Leadership Management Communications Gateway Leadership Management Communications
The SCA Audit process Collaboration Service Innovation Zero Waste Climate Resilience Measurement Manage Compliance Commercialize Sustainability Re-invent SCA Audit 1 2 3 a. What is the scope for a sustainable competitive advantage arising from this characteristic for your organization, or sector? b. To what extent is your organization achieving this? + -
Why the Fourth Revolution is inevitable M&S Plan A. A case study in Sustainable Competitive Advantage Part 3.
M&S: Plan A. Because there is no Plan B, £200m, 5yr eco-plan <ul><li>Action across 35,000 product lines, </li></ul><ul><li>Involving over 2,000 factories, 20,000 farms and 250,000 workers world wide </li></ul><ul><li>Engaging 70,000 employees, and 16 million customers every week. </li></ul><ul><li>2009/10 125th anniversary of M&S, 3rd year of Plan A </li></ul><ul><li>Why Plan A? </li></ul><ul><ul><ul><li>Make customers feel better </li></ul></ul></ul><ul><ul><ul><li>Save money </li></ul></ul></ul><ul><ul><ul><li>Stay competitive </li></ul></ul></ul>
M&S and the SCA Audit Manage Compliance Commercialize Sustainability Re-invent SCA Audit Collaboration Scope Achievement X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X Ability to lead the transition Phase 1 Phase 2 Phase 3 X X X Service Innovation Zero Waste Climate resilience Measurement
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