IBM Leading Sustainable Enterprise

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IBM Leading Sustainable Enterprise

  1. 1. IBM Global Business Services IBM Institute for Business Value Corporate Social Responsibility Leading a sustainable enterprise Leveraging insight and information to act
  2. 2. IBM Institute for Business Value IBM Global Business Services, through the IBM Institute for Business Value, develops fact-based strategic insights for senior business executives around critical industry-specific and cross-industry issues. This executive brief is based on an in-depth study by the Institute’s research team. It is part of an ongoing commitment by IBM Global Business Services to provide analysis and viewpoints that help companies realize business value. You may contact the authors or send an e-mail to iibv@us.ibm.com for more information.
  3. 3. Leading a sustainable enterprise Leveraging insight and information to act By Eric Riddleberger and Jeffrey Hittner Organizations have recently sharpened their focus on sustainability, primarily in response to consumer and stakeholder expectations. Consequently, they face an entirely new set of decisions. However, most lack the information required to make these strategic choices. Based on what we’ve learned from outperforming organizations and leading CSR organizations, we believe businesses should develop new sources of operational, supply chain and customer information to gain new levels of insight for meeting strategic sustainability objectives. Today, more than ever, organizations are FIGURE 1. focused on environmental and social responsi- Change in importance of CSR to strategic bility as a strategic objective. Our 2009 survey objectives over the past year. of 224 business leaders worldwide shows that (Percent responses) 60 percent believe corporate social responsi- 60% bility (CSR) has increased in importance over 1 the past year (see Figure 1). Only 6 percent say it is a lower priority. These responses 34% defy the conventional wisdom that the new economic environment dilutes CSR focus. The conditions of a faster, flatter and more 6% interconnected world are without question More Remained about Less changing business strategy, as is a greater important the same important awareness of systemic risk and its conse- Source: IBM Intitute for Business Value 2009 CSR Study. quences. These same conditions make a strong case for a sustainable approach to doing business, one that recognizes that the 1 Leading a sustainable enterprise
  4. 4. long-term health of an organization is inextri- margin – the information they need to operate cably tied to the well-being of society and the as a sustainable enterprise. planet on which we live. Outperforming organizations have proven to To be sustainable, businesses are now be far better at casting a wide net for informa- embracing a relatively new objective: tion across their ecosystems.2 They are also optimizing their operations to minimize environ- collecting information that is more relevant to mental impact and improve social outcomes in understanding and meeting the performance a manner that also maximizes performance. challenges of operating in a sustainable manner. More than two-thirds of organizations we surveyed focus on CSR as part of an inte- What’s holding other organizations back? grated business strategy to grow new revenue There are some very real obstacles. As is streams and control costs. As a result, they the case with many new ventures, it can face an entirely new set of decisions. Can be difficult to determine what information is they cut down on waste without increasing needed. Should organizations seeking to the price of products? Do they need to rethink improve sustainability look into the tsunami of distribution options to reduce carbon and the realtime, unstructured information? If they do, impact of volatile energy prices? Should they will they know how to turn the information into segment products and services to meet a insight and action? What information should growing number of consumer sustainability they share and request of others? And how concerns? The answers to these and other do they manage all of these new information questions like them involve managing an needs in a cost-effective way? intricate new set of tradeoffs. Early efforts suggest that collaboration is Organizations are constantly assessing the the best approach. Instead of going it alone, current and future impact of their activities. leading organizations are exchanging infor- They’re introducing innovative processes to mation with customers, industry groups and source, distribute, develop and produce goods nongovernmental organizations (NGOs) and services in a sustainable manner. In taking to increase their access to a wider pool of on responsibility for waste and disposal, they knowledge and their ability to benchmark. are charged with reevaluating everything from They are joining with partners, suppliers product development to partnerships. and even competitors to exchange leading practices and ultimately build out common As might be expected, progress is mixed. standards for sustainability. Standards are a Challenges abound, especially in accessing requirement for effectively implementing a CSR the information needed to meet these new strategy over the long term. strategic objectives. Overall, organizations have intensified efforts to collect information By collaborating and utilizing up-to-date about their operations in areas from sustain- information and standards, today’s organiza- able procurement to ethical labor standards. tions can improve sustainability, while also However, many are still missing – by a wide increasing operational efficiency and perfor- mance. 22 IBM Global Business Services IBM Global Business Services
  5. 5. Leading a sustainable enterprise Leveraging insight and information to act Leading organizations Emerging information requirements catch and without endangering other ocean Demands for information pertaining to an species? How far was it shipped and who recognize that profit organization’s social and environmental handled it? at the expense of impact – whether from consumers, regulators, environmental or social All of this information can be made available NGOs or conscientious investors – have risen with today’s technology. Ocean catch can good is ultimately not dramatically. Given today’s harsh realities of be location- and time-stamped using Global sustainable. global warming, increased regulation, scarcer Positioning System (GPS) technology that and costlier resources, and exploding popula- tracks the position of trawlers. The data is tions, attention to environmental, health and embedded in electronic tags and transmitted societal concerns will only intensify. all the way to point of sale so, for example, Global connectivity has raised the stakes shoppers in Norway can scan barcodes to relating to a corporation’s accountability for find out when and where the fish they selected its actions. Points of view abound – on what’s was caught and packaged.3 harmful and what’s not, as well as what consti- Beyond reporting tutes good business, good practice or even Our 2009 survey reveals that sharing relevant good sense. With the advent of the Internet, information to educate and inform stake- NGO scrutiny is being matched by a new kind holders was a primary objective. Interestingly, of viral and pervasive consumer advocacy. using information to optimize supply chains, At the same time, the volume and granularity transport and logistics, waste management of information available have grown exponen- and product lifecycle was a far less prevalent tially. Realtime data streams fed by sensors, goal. Given that 87 percent of business satellite images, social networks, chats, videos leaders surveyed say they have focused their and other mediums have greatly increased CSR efforts to create new efficiencies, we see the potential to understand what’s going on a missed opportunity to connect operational anywhere in the world at anytime. information with this important CSR objective. Today, determining the exact field where a tree, Leading organizations, however, are reaping copper or ore is extracted is as feasible as cost efficiencies by making that connection. examining employees’ labor rights in a factory Chinese shipping and logistics giant COSCO located in a village of a thousand on the tip of was able to analyze its current carbon footprint an isthmus in Vietnam. With so much informa- and develop alternative logistics strategies tion available, leading organizations are finding to reduce carbon.4 It calculated tradeoffs they can satisfy the demands of a new gener- between carbon prices and consumption, ation of consumers: the information omnivores. logistics costs, carrier types and load capacity, information on product demand, customer Buyers of fish, for example, have a number of service and the like. At the same time, it concerns beyond freshness. Is the seafood looked at alternative modes of transport, really wild, as advertised? Was it harvested freight consolidation and network configura- legally – under guidelines for total allowable tion strategies. As a result, it reduced the 3 Leading a sustainable enterprise
  6. 6. number of its distribution points from 100 to Education (IERE) for a full “cradle-to-plate” 40, lowering costs by 23 percent and reducing evaluation of the environmental impact of its carbon dioxide emissions by 15 percent, which single-serving shelf-stable chili and beans equates to 100,000 tons per year. product. The study analyzed scientific data related to climate change, soil loss and Friesland Coberco Dairy Foods has taken ecotoxicity caused by energy usage in food another approach to reduce its transport transport and manufacturing, as well as burden by transforming the way it makes baby materials used in production and disposal. food. Ingredients that constitute the flavor The investigators came to the counterintuitive varieties are now added at a later stage in the conclusion that the prepared product was, supply chain, a change that can cut inventory overall, more environmentally friendly than a and transportation by an estimated 127 ,000 homemade bowl of chili. The finished product miles per year, with corresponding carbon doesn’t require freezing or refrigeration during 5 reductions. distribution or home storage, and creates less food waste. These extended supply chain IBM is another example. At one of its sites, it factors offset the energy consumed in the analyzes realtime data on water usage and manufacturing of product packaging.6 quality collected by hundreds of sensors across the plant. Results of process improve- In addition to information about its own opera- ments based on this information have already tions, an organization also should seek full reduced overall water usage by 27 percent ecosystem information about its partners. A while increasing manufacturing production company’s carbon footprint, for example, is the by more than 30 percent. Savings so far have sum total of all footprints associated with those amounted to US$3 million a year. who supply its resources, as well as those who distribute its products. Further, when it The cost efficiencies that can be gained comes to CSR, customers are among the most from better management in areas such as important partners. So, in addition to knowing water, energy and waste are apparent and how they use and dispose of products, a achievable. However, there are some burdens company needs to understand its customers’ associated with acquiring and managing a specific sustainability concerns to meet their rich set of information about operations. For objectives or educate customers about why example, implementing sustainability strategies the company thinks its objectives should also requires a sound understanding of tradeoffs be theirs. related to areas like quality and customer service, as well as costs and environmental The optimization gap impact. In many cases, these factors must We surveyed leaders on three information be evaluated for their impact across the full areas related to sustainability: operations, supply chain and lifecycle, and doing that supply chain and customers. Our results requires information on how the product or indicate that operational information needs to service is consumed. be more timely, supply chain information is still Food company Truitt Bros. Inc. worked with too insular and more customer information is the Institute for Environmental Research and needed. 4 IBM Global Business Services
  7. 7. It’s important not only 1. Operational information: Growing but not collecting information about key operations not always timely and sustainability objectives on a frequent to collect operational Four in ten of the business leaders surveyed basis. Even in the high-profile area of carbon information but to reported that over the last three years they management, for example, eight out of ten do it frequently – so have increased the amount of information business leaders surveyed are not. They may they collect about their operations in each of be able to use the information they have for that fresh, accurate eight sustainability areas we tracked: energy an annual CSR report; however, since they data can be used to management, carbon management, waste aren’t evaluating the ongoing impact of actions make operations more management, water management, sustainable on their carbon footprint, it’s unlikely they can sustainable. procurement, product composition, ethical use the data to make their operations more labor standards and product lifecycle. Not sustainable (see Figure 3). surprisingly, the biggest increase in the amount of information collected is in energy, where Outperforming organizations in our survey just under two-thirds of respondents report were significantly more likely to collect timely increases (see Figure 2). About half report information about their operations. For all increases in carbon, water and waste manage- companies, peer pressure and persistence ment; sustainable procurement; product may move those numbers up. The longer a composition; and ethical labor standards. company has been required by its business partners to adopt CSR standards, the more One of the great advantages of the new infor- frequently it collects data. This association mation era is the availability of realtime data. holds true across each of the eight areas we Yet, too often the information being collected tracked, suggesting that over time, the value of is stale. Nearly 60 percent of organizations are truly current information becomes apparent. FIGURE 2. Change in information collection over the past three years. (Percent responses) Energy management 64% 24% 11% Waste management 56% 31% 11% Carbon management 53% 24% 22% Water management 49% 35% 14% Sustainable procurement (ethical or environmental) 49% 37% 12% Ethical labor standards 49% 42% 7% Product composition 46% 37% 15% Product lifecycle 39% 39% 20% Increased Stayed the same Decreased Not applicable (includes don’t collect) Source: IBM Intitute for Business Value 2009 CSR Study. 5 Leading a sustainable enterprise
  8. 8. FIGURE 3. Frequency of information collection. (Percent responses) Energy management 39% 28% 23% 10% Product composition 34% 21% 30% 15% Water management 34% 22% 31% 13% Waste management 32% 26% 33% 9% Ethical labor standards 29% 28% 35% 8% Sustainable procurement 28% 23% 35% 14% (ethical or environmental) Product lifecycle 25% 20% 30% 25% Carbon management 20% 19% 40% 21% Frequently/ Occasionally Rarely Not applicable Realtime (approximately (1-4 times per year) (includes don’t collect) every month) Source: IBM Intitute for Business Value 2009 CSR Study. 2. Supply chain information: Still too FIGURE 4. insular Information collection from suppliers. More than half of the business leaders (Percent responses) surveyed said they consider the open sharing Ethical labor standards 43% of information among stakeholders and business partners a high priority. However, Product composition 41% the vast majority aren’t collecting adequate Sustainable procurement information from their suppliers to support their (ethical or environmental) 31% CSR objectives. Outperforming organizations, Waste management 31% on the other hand, are collecting more infor- mation from their suppliers in each of the eight Product lifecycle 29% categories we tracked as compared to their peers. Energy management 25% Three out of ten organizations surveyed aren’t Water management 23% asking their suppliers for any information in Carbon management 18% any of the eight categories. Surprisingly, in the carbon and water categories, where cross- Don’t collect in any areas 29% ecosystem “footprinting” is becoming more common, approximately eight out of ten aren’t Source: IBM Intitute for Business Value 2009 CSR Study. collecting information from their suppliers. And, despite a long history of brand-damaging scandals in the area of labor, six out of ten aren’t collecting information on ethical labor from their suppliers (see Figure 4). 6 IBM Global Business Services
  9. 9. Most organizations 3. Customer information: Improving but far Knowledge of customers’ CSR concerns to go surveyed need to varied widely by region. Nearly half of Consumer purchasing decisions are often Western European business leaders said collect more CSR influenced by perceptions of how socially their companies understand their customers’ data from suppliers, and environmentally responsible an organi- CSR expectations well. While that number zation is. To see how well those perceptions as well as gain a was slightly lower in North America, it was as are understood, we asked business leaders better understanding low as roughly one in ten in Asia Pacific. Not in our 2008 and 2009 surveys about how surprising, more than half of the companies of their customers’ well they understand their customers’ CSR in this region have yet to conduct any CSR concerns. concerns. Overall in 2009, two-thirds admit research on the topic. However, it appears they don’t understand their customers’ CSR companies in Asia Pacific could be moving concerns well. This represents an 11 point forward. Nearly three-quarters say they have improvement over the previous year and a moderate understanding of their customers’ suggests organizations are making inroads CSR expectations and nearly one-fifth began fast. Nevertheless, in our 2009 survey, nearly researching customer concern on this topic four in ten organizations reported that they within the past year. have yet to conduct any research on the topic (see Figure 5). Outperforming organizations Across the entire sample, the shortfall in were nearly twice as likely to understand their collecting information related to operations, customers’ needs well. supply chain and customers reveals an optimization gap (see Figure 6). In addition, FIGURE 5. we found that outperforming organizations Years conducting research on customers’ CSR perform better in all three information catego- concerns. ries, as do organizations that have focused (Percent responses) more than three years on integrating their CSR 35% 37% objectives to grow revenues and become more efficient. The approach to information 28% and actions taken by these organizations suggest that the gap will narrow over time. The immediate challenge is to identify what information is needed and then aggregate and analyze it so it contributes to efficiency and growth objectives. 3 or more Less than 3 No research years years on customers’ CSR concerns Source: IBM Intitute for Business Value 2009 CSR Study. 7 Leading a sustainable enterprise
  10. 10. FIGURE 6. Optimization gap. Efficiency Growth 87% 57 Gap % 57Gap % 52 Gap % 69% 39Gap % 39Gap % 34Gap % 30% 30% 35% 30% 30% 35% Focused Collect Gather CSR Understand Focused Collect Gather CSR Understand on CSR for operations- data from customers’ CSR on CSR for operations- data from customers’ CSR efficiency related CSR data suppliers expectations well growth related CSR data suppliers expectations well frequently frequently Source: IBM Intitute for Business Value 2009 CSR Study. Insight, engagement and action from labor to water standards. They’re iden- Today, every organization is a system of tifying leading practices and techniques to systems, much more bound up in complex, inform and educate stakeholders, such as interdependent forces than the traditional customers and employees, more broadly. business system of years past, with its Overall, most organizations know they need clear-cut focus on profits. to engage their stakeholders in some way. Given increasingly finite resources, businesses However, proactive engagement with business depend on balanced natural ecosystems for partners and NGOs, at 55 and 44 percent raw materials, water, energy and the physical respectively, is relatively low, given the benefits health of their employees and customers. that can be achieved from collaboration (see They depend on thriving community systems Figure 7). for labor, new sources of innovation and customers. Given the links among its systems, FIGURE 7. an enterprise committed to practicing sustain- Proactive engagement with stakeholder groups. ability considers both the immediate and (Percent responses) far-reaching consequences of any action it Employees 63% takes. Investors 55% While these dependencies obviously complicate the task of responsible business Business partners 55% management, leaders of sustainable organiza- Government 54% tions are learning to understand and act on them. Mastering this complexity requires new Consumers 51% levels of insight, new sources of information and new forms of collaboration. As a result, Community 50% leaders in CSR are developing coalitions of NGOs 44% business partners, NGOs and others to begin to address information gaps in areas ranging Source: IBM Intitute for Business Value 2009 CSR Study. 8 IBM Global Business Services
  11. 11. New types of The new information landscape Creating leading practices and standards The volume and granularity of information Today, despite a proliferation of regulations, information are are growing exponentially. New types of infor- labeling schemes and codes of conduct, emerging, as are new mation are emerging to address challenges standards for sustainability are relatively tools and services to that were once impenetrable. Earthmine, for immature. A recent survey by the Carbon collect, analyze and example, is creating a three-dimensional Disclosure Project revealed 34 different ways index of urban spaces – collecting GPS data to define and measure carbon emissions utilize data. for every pixel they capture – to help policy among the Financial Times 500 companies. 12 makers and community leaders manage public safety and economic development. 7 At present, shared leading practices and Another organization, Mobile Metrix, is benchmarking from industry coalitions are gathering data on job skills, health conditions, driving CSR decision making more so than education levels and more on the one billion internationally accepted standards. From these plus individuals in developing countries with activities, however, long-lasting standards virtually no official records. 8 should emerge. Active industry participation now is one way to help ensure that the new Yet another organization, Lanworth, applies practices and codes that emerge will make it data analytics to its immense database of easier, not more onerous, to operate a sustain- satellite imagery, field samples and weather able business. Moreover, industry coalitions models to better manage risk associated with are an excellent way to access and share a 9 land use and crop yields. Historical informa- wider body of sustainability information. These tion on climate, topography and production groups can also help organizations make can eventually enable all stakeholders to make better use of their information by suggesting informed recommendations about land usage how, for example, the information can be and natural resource procurement. deployed to change operations and innovate, as well as communicate progress to stake- New tools and services are also fast emerging holders. to help collect information. Digitized sensors can gather and transmit information about Like carbon, water is a topical issue, particu- real-world conditions instantaneously. larly in developing countries facing scarcity Pachube, for example, lets organizations freely of this vital resource. Well-known brands have share and monitor realtime environmental learned the hard way that in places where data across a global network of shared government stewardship is considered inad- 10 sensors. Other services, such as Efficiency equate, local communities will advocate in its 2.0, combine energy audit software and social place. To address this need, 12 companies, networking tools to help corporations access including Coca-Cola, Diageo, Nestlé, and act on granular data about energy usage Anheuser-Busch InBev and PepsiCo, have 11 down to the level of individual employees. formed the Beverage Industry Environmental Roundtable to collect and share data and leading practices relating to water conser- 9 Leading a sustainable enterprise
  12. 12. vation and resource protection. Together, compare packaging materials, energy effi- they established a common framework to ciencies, environmental standards and more exchange information on water reduction, against their competitors.14 The weighted reuse and stewardship, as well as drought metrics give suppliers the chance to focus on 13 preparedness. specific innovations with the most impact, as well as drive constant change. In the electronics industry, a contract manu- facturing company in Asia or Mexico would Customers: Partners in sustainability find it inefficient and effectively impossible Most organizations understand expectations to comply with multiple codes of conduct for transparency with regard to CSR initiatives. mandated by its original equipment manu- Over one-half of the business leaders we facturer (OEM) customers. In response to this surveyed consider the open sharing of infor- industry challenge, the Electronics Industry mation a high priority. However, until recently, Citizenship Coalition (EICC) created mecha- organizations have tended to share informa- nisms for companies to exchange resources tion reactively – in response to stakeholder and programs that improve labor practices. demands. Those that expect to gain business Audit results, along with assessment tools advantage from CSR are developing new and educational resources, are available to ways to inform and educate their stakeholders, association members, who span four tiers of whether they are customers, employees or the supply chain. Openness like this deepens partners. relationships among OEMs, suppliers and partners, who can then harmonize their Many organizations are reconfiguring transport approaches to creating an ethical supply and logistics operations and weighing the chain. tradeoffs. For example, customer satisfac- tion may increase with conveniences like Benchmarks and leading practices are one-day delivery, but fully loaded transport important guides to use in setting objectives. reduces energy costs. One way to evaluate The challenge lies in aligning these objectives the options: make the customer part of the across constituencies with diverse concerns decision. This could include laying out the and goals of their own. These stakeholders shipping alternatives for customers when they include employees, consumers, business make their purchases. Point-of-sale informa- partners, investors and NGOs, as well as tion on delivery options could provide them regulatory bodies and governmental institu- with a welcome opportunity to reduce their tions. Many trade and industry organizations carbon footprint: “If you want to reduce your are developing frameworks and scorecards greenhouse gas emissions by 80 percent on to help identify metrics and key performance the delivery of this television, click here and indicators weighted to align and achieve your package will arrive next week via hybrid objectives. carrier.” Wal-Mart Stores Inc. established the U.K. retailer Tesco makes education a mutual Packaging Sustainable Value Network, a group endeavor. Its new pilot program enables of 200 leaders in the packaging industry, customers to actually recycle when they buy. to create a packaging scorecard with nine Before taking purchases home, customers specific metrics that enabled suppliers to can take off product packaging they don’t 10 IBM Global Business Services
  13. 13. Collaboration – with need and leave it in the supermarket. That way, Conclusion they do their recycling when it’s top of mind stakeholders, customers Organizations that seek to adopt a sustain- and convenient but, just as important, their and even competitors able approach to business face a new set of actions give the retailer helpful information decisions imposed by the constraints of finite – is key in both regarding which components of the packaging resources. At the same time, there is a growing setting standards for are useful enough to keep and which are 15 body of information ready to be turned into excessive. sustainability and in new intelligence and new advantage. enabling the necessary German wholesaler, Metro Cash & Carry, To succeed, your organization should consider transparency. created a two-way information exchange the following actions: based on consumers’ desire for product infor- mation. Star Farm, its wholly owned subsidiary, 1. Identify information gaps and analysis developed a program explaining its food needs. Is the CSR information you collect traceability system and how to use in-store relevant and timely enough to make terminal tracking machines to scan trace- strategic decisions? Are you getting the ability barcodes for information. Suppliers that information you need from your business cooperate with Star Farm and sell products partners and suppliers? Do you understand have been audited and instructed by Star your customers’ CSR concerns as well as Farm using international quality standards. An those of other key stakeholders in your after-sales service also allows consumers to ecosystem? log into Star Farm’s Web site from home and 2. Align objectives with those of stakeholders; search for product information by traceability then prioritize. Stakeholders require a lot of code. In the process of answering customers’ information, but their information demands questions, these electronic searches also can’t be your only focus. Are you collecting capture shoppers’ queries, thereby deepening information that helps you meet your Metro’s understanding of customer concerns business objectives, and are you communi- about food safety and quality. cating those objectives to stakeholders? Innovations like these help create a business 3. Assess leading practices and benchmarks. culture that makes two-way transparency core Have you identified sustainability leading to sustainability. Results of our survey indicate practices and benchmarks for your key CSR that organizations placing a higher priority on activities? Are you participating in industry- transparency and those that have attained or activity-focused coalitions that are some maturity find it easier to execute. Clearly, developing leading practices and bench- once organizations start efforts to increase marks? Are there frameworks or scorecards transparency, they gain needed experience to weigh the impact of activities against and greater confidence in the value of sharing overall objectives? information both within their organization and The answers to these questions can help with their stakeholders. Engineered creatively, you set and prioritize a course of action. As these collaborations can do more than inform these actions advance your CSR strategy, customers; instead of simply sharing informa- you’ll be well positioned to reap the business tion, organizations are learning to construct benefits of more efficient operations and a true exchange, where both the stakeholder better balance with diverse social and envi- and the organization gain knowledge to do ronmental ecosystems. something new. 11 Leading a sustainable enterprise
  14. 14. About the authors References 1 Eric J. Riddleberger is a partner with IBM The IBM Institute for Business Value in Global Business Services and leads the cooperation with the Economist Intelligence Global Business Strategy Practice, as well Unit surveyed senior executives across as the Strategy and Change Practice in the Europe, the Americas and Asia Pacific from Communications Sector. He has more than 25 December 2008 through January 2009. years of professional experience in strategy 2 Respondents classified themselves as and technology throughout the world with IBM, outperforming, on par or underperforming Booz Allen Hamilton, UBS Capital and AT&T. Eric’s work with clients includes corporate as compared to their peers. 3 transformation, market analysis, strategic “Tracing the fish.” Seafood from Norway. planning, mergers and acquisitions, and March 24, 2006. http://www.seafoodfrom- business development. In addition to his direct norway.com/page?id=100&key=14373 client engagements, Eric is part of the team 4 “Oh, The Climate Outside Is Frightening…” that created and drove the IBM Global CEO IBM Press Release. January 23, 2009. http:// studies on innovation and business models www-03.ibm.com/press/us/en/pressre- and is currently leading the IBM Corporate lease/26522.wss Social Responsibility consulting service 5 offerings. Eric can be reached at eriddle@ “Mastering Carbon Management.” IBM us.ibm.com. Institute for Business Value. 2008. 6 Jeff Hittner is the CSR leader for IBM Global “Oregon Food Processor First to Use Business Services. He works with a range of a Lifecycle Assessment to Evaluate industries and clients to address the emerging Environmental Impact of Producing and role of CSR and sustainability in core business Packaging a Food Product.” CSRwire. strategies. Jeff’s previous IBM publications May 12, 2009. http://www.csrwire.com/ include “Mastering Carbon Management” press/press_release/14170-Oregon-Food- and “Attaining Sustainable Growth Through Processor-First-to-Use-a-Life-Cycle-Assess- Corporate Social Responsibility.” Jeff can be ment-to-Evaluate-the-Environmental-Impact- reached at jhittner@us.ibm.com. of-Producing-and-Packaging-a-Food-P- roduct The right partner for a changing 7 “Earthmine applications.” Earthmine. http:// world www.earthmine.com/ At IBM, we collaborate with our clients, 8 bringing together business insight, advanced Mobile metrix Web site. http://www.mobile- research and technology to give them a metrix.org/ distinct advantage in today’s rapidly changing 9 Lanworth Web site. http://lanworth.com/ environment. Through our integrated approach 10 Pachube Web site. http://www.pachube.com/ to business design and execution, we help turn strategies into action. And with exper- tise in 17 industries and global capabilities that span 170 countries, we can help clients anticipate change and profit from new oppor- tunities. 12 IBM Global Business Services
  15. 15. 11 “Efficiency2.0: About.” Efficiency2.0. http://efficiency20.com/about.html; “Efficiency2.0: Companies.” Efficiency2.0. http://efficiency20.com/companies.html; “Efficiency2.0: Personal Energy Advisor.” Efficiency2.0. http://efficiency20.com/ software/energy_advisor.html 12 “Report Analyzes Greenhouse Gas Reporting Methods.” Greenbiz.com. July 6, 2008. http://www.greenbiz.com/ news/2008/07/07/greenhouse-gas-reporting- methods 13 “Water: A Global Innovation Outlook Report.” IBM 2009. 14 “Wal-Mart Unveils ‘Packaging Scorecard’ to Suppliers.” Wal-Mart Stores, Inc. http://walmartstores.com/FactsNews/ NewsRoom/6039.aspx 15 “Tesco seeks customers’ help in identifying excessive packaging.” Triplepundit.com. April 7 2009. http://www.triplepundit.com/pages/ , tesco-seeks-customers-help-in-identifyin. php 13 Leading a sustainable enterprise
  16. 16. © Copyright IBM Corporation 2009 IBM Global Services Route 100 Somers, NY 10589 U.S.A. Produced in the United States of America June 2009 All Rights Reserved IBM, the IBM logo and ibm.com are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries, or both. If these and other IBM trademarked terms are marked on their first occurrence in this information with a trademark symbol (® or ™), these symbols indicate U.S. registered or common law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at ibm.com/legal/copytrade.shtml Other company, product and service names may be trademarks or service marks of others. References in this publication to IBM products and services do not imply that IBM intends to make them available in all countries in which IBM operates. GBE03226-USEN-00

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