Sustainable Value Matrix

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Presentation on Stuart Hart's Sustainable Value Matrix as a tool and framework for understanding corporate sustainability (for our Principles of Sustainable Management class 2013)

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Sustainable Value Matrix

  1. 1. Triple Bottom Feeders SUSTAINABLE VALUE
  2. 2. Not this Matrix!
  3. 3. 1997 Beyond Greening: Strategies for a Sustainable World Hart, Harvard Business Review 1999 Global Sustainability and the Creative Destruction of Industries Hart & Milstein, Sloan Management Review 2003 Creating Sustainable Value Hart & Milstein, Academy of Management Executive 2007 Capitalism at the Crossroads (updated 2010) Hart, Prentice Hall First Articulation Creative Destruction Fully Developed Integration • Creators of Sustainable Value Matrix • Professors of Management • Business consultants • Leaders in corporate sustainability Stuart L. Hart Mark B. Milstein Historical Foundations
  4. 4. the triple bottom line Growth Path & Trajectory Cost & Risk Reduction Reputation & Legitimacy Innovation & Repositioning Internal External Present Say you’re an executive at a large, multinational, single bottom line company …. The Sustainable Value Matrix Future • Makes the business case for sustainability • Provides a clear path for doing this VALUEVALUE Business Drivers or Corporate Payoffs
  5. 5. Business Driver Cost and risk reduction Sustainability Driver Environmental degradation Business Strategy Pollution prevention Levi Strauss & Co Example Energy and water reductions Restricted Substance List Reduced GHGs Bottom Left Quadrant Present, Internal BASE of the PYRAMID POLLUTION PREVENTION PRODUCT STEWARDSHI P CLEAN TECH
  6. 6. Business Driver Reputation & legitimacy Sustainability Driver Civil society stakeholders Business Strategy Product stewardship Levi Strauss & Co Example LCA (Care Tag for Our Planet) Advocacy (BICEP) Partnership w/Greenpeace Bottom Right Quadrant Present, External BASE of the PYRAMID POLLUTION PREVENTION PRODUCT STEWARDSHI P CLEAN TECH
  7. 7. Business Driver Innovation & repositioning Sustainability Driver Long-term health of the planet Business Strategy Clean tech Levi Strauss & Co Example Waste<Less jeans Water<Less jeans Top Left Quadrant Future, Internal BASE of the PYRAMID POLLUTION PREVENTION PRODUCT STEWARDSHI P CLEAN TECH
  8. 8. Business Driver Growth Path & Trajectory Sustainability Driver Global poverty & inequity Business Strategy Base of the Pyramid (BoP) Levi Strauss & Co Example Factory workers’ rights & well-being Foundation programs Top Right Quadrant Future, External BASE of the PYRAMID POLLUTION PREVENTION PRODUCT STEWARDSHI P CLEAN TECH
  9. 9. Corporations that Act in all 4 Quadrants: Minimize risk Maximize shareholder value Maximize positive social and environmental impacts BASE of the PYRAMID POLLUTION PREVENTION PRODUCT STEWARDSHI P CLEAN TECH What this all Means The Sustainable Value Matrix Internal External Present Future
  10. 10. Challenges Top of the matrix requires paradigm shift Corporate imperialism
  11. 11. BoP 2.0 BoP 1.0: poor as consumers BoP 2.0: poor as business partners Green Leap Marrying Clean Tech with BoP (top quadrants) Breakthroughs
  12. 12. Conclusion Establish future growth by addressing the needs of the world’s poor through BoP Improve reputation and create legitimacy through product stewardship Minimize risk & costs through reduction of pollution, waste, and consumption Innovate and reposition for future disruptions through clean tech

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