Triple Bottom Line of Business.ppt


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  • EARTH DAY : 20 million Americans took to the streets, parks, and auditoriums to demonstrate for a healthy, sustainable environment Rare political alignment of Democrats and Republicans, rich and poor, etc. Led to: EPA, Clean Air Act, Clean Water Act, Endangered Species Act UN CONFERENCE -- Attended by 113 nations First concerted global effort to deal with environmental problems Environment still an external THING to be acted upon Link made between quality of life and quality of environment for present and future generations
  • 1983 : Headed by Gro Brundtland, President of Norway An independent body of politicians, civil servants, and experts on the environment and development Commissioned over 75 expert studies on environment and economic development issues 1987 FOCUS: securing global equity and redistributing resources towards poorer nations while encouraging their economic growth This definition is still widely used today In 1989, the UN decided to convene the UN Conference on Environment and Development (UNCED) UNCED then planned Rio Summit for 1992
  • The HEIGHT of attention to ENV issues OBJECTIVE: report on and discuss the state of the PLANET AGENDA 21: The product of intense negotiations - 40 chapters; 800 pages RIO DECLARATION PRINCIPLES: People are entitled to a healthy and productive life in harmony with nature Development today must not undermine the development and environment needs of present and future generations Nations have the sovereign right to exploit their own resources, but not to cause environmental damage beyond their borders The Global Forum (NGOs) was held concurrently with UNCED, attracting 400,000 participants from the business, scientific, non-governmental communities from 167 countries 2002 : Johannesburg: Realization that very little progress had been made since Rio summit – didn’t advance ball down field very well
  • The leading U.S. coalition of environmental, investor, and advocacy groups working together for a sustainable future A common ground where groups with widely different backgrounds, assumptions, and visions find concrete solutions to today's environmental challenges Made up of: Environmental groups Investors Advisors, and analysts representing over $300 billion in invested capital Public interest and community groups
  • Started in 1997 by CERES Became independent in 2002 Multi-stakeholder process and independent institution whose mission is to develop and disseminate globally applicable Sustainability Reporting Guidelines. These Guidelines are for voluntary use by organizations for reporting on the economic, environmental, and social dimensions of their activities, products, and services. Representatives from around world: Business Accountancy Investment Environmental and Human rights Research Labor organizations
  • 1. Eliminate Waste — The first step to sustainability, QUEST is Interface's campaign to eliminate the concept of waste, not just incrementally reduce it. 2. Benign Emissions — We're focusing on the elimination of molecular waste emitted with negative or toxic impact into our natural systems. 3. Renewable Energy — We're reducing the energy used by our processes while replacing non-renewable sources with sustainable ones. 4. Closing the Loop — Our aim is to redesign our processes and products to create cyclical material flows. 5. Resource Efficient Transportation — We're exploring methods to reduce the transportation of molecules (products and people) in favor of moving information. This includes plant location, logistics, information technology, video-conferencing, e-mail, and telecommuting. 6. Sensitivity Hookup — The goal here is to create a community within and around Interface that understands the functioning of natural systems and our impact on them. 7. Redesign Commerce
  • CEO: Phil Knight A COWBOY company; TAKE NO PRISONERS MID-LEVEL, grassroots sustainability effort 1990’S SWEATSHOP DEBACLE caused sales to stop increasing and STOCK DECREASE of 33-50% Attempting to move to ORGANIC COTTON – INADEQUATE SUPPLY
  • STAR: works to decrease waste, conserve natural resources and prevent pollutions through the recycling of steel and cement manufacturing waste COLLABORATION: add furnace slag to the raw material cement mix, producing fewer overall CO2 emissions and waste ASR: placed it next to mill, providing 40% of scrap metal requirement Separates car waste into pure components, including non-chlorinated plastics, aluminum and magnesium
  • Triple Bottom Line of Business.ppt

    1. 1. The Triple Bottom Line of Business Joe Kresse Steve Attinger San Jose State University December 2, 2003
    2. 2. Agenda <ul><li>History of “Sustainability” and the “Triple Bottom Line” </li></ul><ul><li>CERES and GRI </li></ul><ul><li>Models for Sustainability </li></ul><ul><li>The Triple Bottom Line Business Case </li></ul><ul><li>Sustainability Ladder </li></ul><ul><li>Case Examples </li></ul>
    3. 3. History of Sustainability <ul><li>1962: Rachel Carson publishes “Silent Spring” </li></ul><ul><li>1970: </li></ul><ul><ul><li>First Earth Day celebration – April 22nd </li></ul></ul><ul><ul><li>Nixon establishes EPA </li></ul></ul><ul><ul><ul><li>Fueled by industrialization and overpopulation impacts </li></ul></ul></ul><ul><li>1972: First UN conference on the Human Environment in Stockholm, Sweden </li></ul>
    4. 4. History of Sustainability <ul><li>1983 – UN establishes World Commission on Environment and Development </li></ul><ul><ul><li>Purpose : examine world’s critical environment and development problems and formulate solutions </li></ul></ul><ul><li>1987: Brundtland Commission Report </li></ul><ul><ul><li>3 components of Sustainable Development: Environmental protection , Economic growth , and Social equity </li></ul></ul><ul><ul><li>Defined Sustainable Development as… </li></ul></ul><ul><ul><ul><ul><li>“ Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” </li></ul></ul></ul></ul>
    5. 5. History of Sustainability <ul><li>1992: Rio Earth Summit </li></ul><ul><ul><li>Over 178 governments adopted… </li></ul></ul><ul><ul><ul><li>Agenda 21 : a global blueprint and plan of action for sustainable development in the 21 st century </li></ul></ul></ul><ul><ul><ul><li>The Rio Declaration on Environment and Development </li></ul></ul></ul><ul><ul><ul><ul><li>27 principles that express the rights and responsibilities of nations as they pursue human development and well-being </li></ul></ul></ul></ul><ul><ul><ul><li>The Forest Principles </li></ul></ul></ul><ul><ul><ul><ul><li>A guide for the management, conservation, and sustainable development of all types of forests </li></ul></ul></ul></ul><ul><li>2002: Third UN conference on Environment and Development, Johannesburg, South Africa </li></ul>
    6. 6. The Triple Bottom Line <ul><li>People, planet, and profits </li></ul><ul><li>Equity, environment, economy </li></ul><ul><li>TBL coined by John Elkington of “SustainAbility” (UK) in 1995 </li></ul><ul><ul><li>Cannibals With Forks: The Triple Bottom Line of 21 st Century Business (1997) </li></ul></ul><ul><ul><li>The Chrysalis Economy: How Citizen CEOs and their Corporations Can Fuse Values and Value Creation (2001) </li></ul></ul><ul><ul><li> </li></ul></ul>
    7. 7. CERES <ul><li>Coalition for Environmentally Responsible Economies (1989) </li></ul><ul><ul><li>10 principles for environmental management </li></ul></ul><ul><ul><li>Endorsing companies </li></ul></ul><ul><ul><ul><li>American Airlines, B of A, Ben & Jerry's, Coca-Cola, Fleet Boston Financial, Ford, GM, Interface, Nike, Polaroid, The Timberland Co., and others </li></ul></ul></ul><ul><li>Launched Global Reporting Initiative (1997) </li></ul><ul><ul><li> </li></ul></ul>
    8. 8. The CERES Principles <ul><li>Protection of the Biosphere </li></ul><ul><li>Sustainable Use of Natural Resources </li></ul><ul><li>Reduction and Disposal of Wastes </li></ul><ul><li>Energy Conservation </li></ul><ul><li>Risk Reduction </li></ul><ul><li>Safe Products and Services </li></ul><ul><li>Environmental Restoration </li></ul><ul><li>Informing the Public </li></ul><ul><li>Management Commitment </li></ul><ul><li>Audits and Reports </li></ul>
    9. 9. GRI <ul><li>Global Reporting Initiative (1997) </li></ul><ul><ul><li>Voluntary globally applicable sustainability reporting guidelines </li></ul></ul><ul><ul><li>341 organizations in 31 countries </li></ul></ul><ul><ul><li>Europe vs. US </li></ul></ul><ul><ul><li> </li></ul></ul>
    10. 10. Reports per Year
    11. 11. Type of Reports in 2002
    12. 12. Reports per Country
    13. 13. Models for Sustainability <ul><li>The Natural Step </li></ul><ul><ul><li>4 system conditions </li></ul></ul><ul><li>McDonough Principles </li></ul><ul><ul><li>Cradle-to-cradle design </li></ul></ul><ul><ul><li>Waste = Food </li></ul></ul><ul><li>Natural Capitalism </li></ul><ul><ul><li>Radically increase resource productivity </li></ul></ul><ul><ul><li>Redesign industry on biological models with closed loops and zero waste </li></ul></ul><ul><ul><li>Shift from products to services </li></ul></ul><ul><ul><li>Reinvest in natural capital </li></ul></ul>
    14. 14. The TBL Business Case <ul><li>Short-term cost reduction </li></ul><ul><ul><li>Energy efficiency and waste reduction </li></ul></ul><ul><li>Longer-term return on investment </li></ul><ul><ul><li>Investment in building improvements </li></ul></ul><ul><li>Value creation - Existing markets </li></ul><ul><li>Value creation - New markets </li></ul>
    15. 15. Sustainability Ladder <ul><li>Products and services </li></ul><ul><li>Processes </li></ul><ul><li>Business model </li></ul><ul><li>Company focus </li></ul><ul><li>Brand identity of company </li></ul><ul><li>Supplier web and value chain </li></ul><ul><li>Industry leadership and advocacy role </li></ul>
    16. 16. Case Examples <ul><li>Dupont </li></ul><ul><li>BP </li></ul><ul><li>Shell </li></ul><ul><li>Agilent </li></ul><ul><li>HP </li></ul><ul><li>Interface </li></ul><ul><li>Nike </li></ul><ul><li>Chaparral Steel Company </li></ul><ul><li>Johnson & Johnson </li></ul><ul><li>IdleAire Technology Corp. </li></ul><ul><li>Lighting Components and Design Inc. </li></ul>
    17. 17. Dupont <ul><li>An international corporation that manufactures healthcare products, electronics and other goods </li></ul><ul><li>Developed a “sustainable growth” mission </li></ul><ul><li>Reduced consumption of raw materials and energy </li></ul><ul><li>Used scientific and technical knowledge to create more environmentally-friendly products </li></ul><ul><li>Engaged stakeholders of the corporation </li></ul><ul><li>Created a “ Carpet Reclamation Program ” where they have reclaimed and recycled 90 million pounds of carpet </li></ul><ul><li>By combining the recycling and sorting process in one location, Dupont has vastly reduced both energy consumption and costs </li></ul><ul><li>  </li></ul><ul><li>Source: The BSD Global website http://www. bsdglobal .com/ viewcasestudy .asp?id=123 </li></ul>
    18. 18. HP <ul><li>Packaging Initiative </li></ul><ul><ul><li>Lighter paperboard sleeve for ink cartridges </li></ul></ul><ul><ul><ul><li>Reduced packaging weight by 34%, reducing costs by more than $700,000 a year </li></ul></ul></ul><ul><ul><li>Reusable transit packaging for inkjet cartridges </li></ul></ul><ul><ul><ul><li>Reduced waste by 2,400 tonnes in 2002, saving $1.5M </li></ul></ul></ul><ul><ul><li>Bulk packaging for desktop computers </li></ul></ul><ul><ul><ul><li>Reduced waste by 86%, saving $ 1.1M in 2002 </li></ul></ul></ul><ul><ul><ul><li>Expected savings of $4M in 2003 </li></ul></ul></ul><ul><li> </li></ul>
    19. 19. Interface Corporation <ul><li>The largest commercial carpet manufacturer in the world </li></ul><ul><li>Vision: </li></ul><ul><ul><ul><li>To be the first company that, by its deeds, shows the entire industrial world what sustainability is in all its dimensions: People, process, product, place and profits — by 2020 — and in doing so we will become restorative through the power of influence. </li></ul></ul></ul><ul><li> </li></ul>
    20. 20. Interface Corporation <ul><li>The Seven Steps </li></ul><ul><li>Eliminate Waste — QUEST program </li></ul><ul><li>Benign Emissions —Elimination of molecular waste </li></ul><ul><li>Renewable Energy —Reducing overall usage; transitioning to renewables </li></ul><ul><li>Closing the Loop — Creating cyclical material flows. </li></ul><ul><li>Resource Efficient Transportation — Reducing movement of products/people in favor of data, e.g. plant location, video-conferencing, telecommuting </li></ul><ul><li>Sensitivity Hookup — A community within and around Interface that understands natural systems and our impact on them. </li></ul><ul><li>Redesign Commerce — Providing services rather than products </li></ul>
    21. 21. Nike <ul><li>Created a “ Transparency 101 ” Program, which ensures public awareness of Nike’s business practices </li></ul><ul><li>Transparency 101 also monitors its factories in each country to make sure its practices follow Nike’s code of conduct </li></ul><ul><li>Nike is phasing out the use of PVC and other harmful chemicals in its products through work with William McDonough </li></ul><ul><li>Created the “ Reuse a Shoe ”, a program that recycles shoes </li></ul><ul><li>Uses organic cotton in some of their clothing </li></ul><ul><li>Has certified its Oregon buildings in an effort to decrease energy use </li></ul><ul><li>  </li></ul><ul><li>Source: The BSD Global website. http://www. bsdglobal .com/ viewcasestudy .asp?id=81 </li></ul>
    22. 22. Chaparral Steel Company <ul><li>Produces bar and structural steel products by recycling scrap steel </li></ul><ul><li>Created Systems and Technology for Advanced Recycling (STAR) </li></ul><ul><li>Collaborated with neighboring cement plant </li></ul><ul><ul><li>Business opportunities for this technology in emission credit trading </li></ul></ul><ul><li>Built advanced Automobile Shredder Residue (ASR) system </li></ul><ul><ul><li>Plastics can be used as a clean, efficient fuel source. </li></ul></ul><ul><ul><li>Sale of clean plastics alone generates up to $500,000 a year. </li></ul></ul><ul><li>Looking to market ASR for mining and selling of clean plastics (waste) rather than sending them to landfills </li></ul><ul><li>Source: The BSD Global website http://www. bsdglobal .com/ viewcasestudy .asp?id=51 </li></ul>
    23. 23. Chaparral Recycling Facility
    24. 24. Johnson & Johnson <ul><li>Has made a major effort to be more energy efficient by reviewing the usage of all aspects of its buildings (lights, fans, motors, etc.) </li></ul><ul><li>Received 1995 Green Lights Partner of the Year Award for large corporations </li></ul><ul><li>Received 1996 Sustained Excellence Award for completing and maintaining lighting upgrades for more than 94% of its workspace </li></ul><ul><li>Involved in a variety of different programs, including “ClimateWise”, “Energy Star Buildings”, and “Energy Star Computers” </li></ul><ul><li>Source: The BSD Global website http://www. bsdglobal .com/ viewcasestudy .asp?id=76 </li></ul>
    25. 25. IdleAire Technology Corp. <ul><li>1.3 million long-haul trucks in US waste 4.4B gals. of diesel annually when drivers leave engines idling when resting. </li></ul><ul><ul><li>Represents 2.6 % of all imported oil </li></ul></ul><ul><li>IdleAire created a technology that allows trucks to heat and cool their cabs without idling their engines, thereby reducing the amount of fuel used and emissions released </li></ul><ul><li>IdleAire installs individual heat and air units above parking spaces at truck stops, charging $10 for 8 hours of service </li></ul><ul><li>Truck owners also save as much as 40% on fuel costs </li></ul><ul><li>Source: Green Gazelles website greengazelles /new.html </li></ul>
    26. 26. Lighting Components and Design Inc. <ul><li>Engineering company that manufactures miniature lighting components </li></ul><ul><li>Created cross-functional team to create a template of energy efficiency improvements </li></ul><ul><li>Improved insulation of its facilities </li></ul><ul><li>Upgraded lighting to fluorescent lamps, including electronic ballasts </li></ul><ul><li>Upgraded HVAC system to reduce energy </li></ul><ul><li>Installed low-flow toilets and water-saving taps </li></ul><ul><li>Upgraded over 24 pieces of motorized manufacturing equipment with energy-efficient motors </li></ul><ul><li>Winner of the EnergyStar 2002 Small Business and Congregations Award </li></ul><ul><li>Result? Prevented over 300,000 pounds of CO 2 emissions and saved $10,300 on utility bills per year </li></ul><ul><li>  </li></ul><ul><li>Source: EnergyStar website cfm ?c= sb _success. sb _2002winners#lighting </li></ul>
    27. 27. Thank you Q & A
    28. 28. GRI 2002 Guidelines - Summary Advertising Respect for privacy Customer health and safety Products and services Product Responsibility Political contributions C ompetition and pricing Community Bribery and corruption Society Forced and compulsory labor Freedom of association & collective bargaining Strategy and management Non-discrimination Child labor Disciplinary practices Security practices Indigenous rights Human Rights Training and education Diversity and opportunity Employment Labor/management relations Health and safety Labor Practices and Decent Work Social Suppliers Products and services Compliance Transport Overall Materials Energy Water Biodiversity Emissions, effluents, and waste Environmental Environmental Providers of capital Public sector Customers Suppliers Employe es Direct Economic Impacts Economic Aspects Category
    29. 29. Committing to Sustainability Whistler Ski Resort Norm Thompson Outfitters Dupont Victor Innovatex Nike Dow Chemical Starbuck’s McDonald’s DesignTex Shell Matsushita Corp. CH2M HILL Rolltronics Jardinière Restaurants BP Rohner Textiles Interface Carpet B.C. Buildings Corp. Rejuvenation Lamp & Fixtures Home Depot Bank of America Placer Dome Mining Hewlett-Packard Agilent NovoNordisk Fairmont Chateau Whistler ABB