Making the Case for Sustainable Business Practices:An Introduction<br />
Outline<br />What does sustainability really mean?<br />Why is sustainability such a hot topic?<br />Making the business c...
What does sustainability mean?<br />Your definition<br />To me, sustainability is a future where beings (human and otherwi...
Definition of Sustainable Development<br />	Sustainable development is development that meets the needs of the present wit...
Definition of Sustainable Development<br />	Sustainable development is development that meets the needs of the present wit...
WHY NOW?<br />
http://www.sustainablescale.org/images/uploaded/Population/World%20Population%20Growth%20to%20205.JPG<br />
The 209 toxins found in mother’s milk of Inuit women living in North Alaska<br />TRASH<br />4.4 pounds/person/day<br />38 ...
North Pacific central gyre - A floating island of plastic larger than Texas<br />Albatross on the Kure-Atoll<br />LA River...
http://ohvec.org/index.html<br />
Impact on other species<br />http://www.earthend-newbeginning.com/<br />http://www.jimmau.com/CONSEQUENCES/<br />http://gr...
http://www.biologicaldiversity.org/programs/climate_law_institute/350_reasons/index.html<br />Species Extinction<br />
Starving bear on Vancouver Island.  <br />Very  reduced salmon run Spring and Fall, 2008.<br />
http://data.giss.nasa.gov/gistemp/2005/<br />
http://www.mirror.co.uk/news/top-stories/2010/08/10/pakistan-flood-disaster-could-be-worse-than-the-boxing-day-tsunami-kas...
Where is our food produced?<br />http://ukiahcommunityblog.wordpress.com/category/dave-smith-blog<br />
l<br />http://transition-times.com/blog/2009/12/21/will-2010-food-crisis-bring-financial-armageddon/<br />http://www.commo...
The Role of Business<br />
“We are all passionate about making real progress regarding the environment.  By working together, we can help each other ...
Lee Scott, Walmart CEOJuly 12 and Sept 25, 2006<br />http://www.walmartstores.com/GlobalWMStoresWeb/navigate.do?catg=355<b...
If Wal-Mart was a country it would rank as the 21st largest in the World<br />1 in 120 people work for Wal-Mart in US, 100...
It is not just WalMart<br />http://www.unglobalcompact.org/news/42-06-22-2010<br />http://www.nicholasinstitute.duke.edu/g...
http://www.wbcsd.org/templates/TemplateWBCSD5/layout.asp?type=p&MenuId=MTEzOQ&doOpen=1&ClickMenu=LeftMenu<br />
The Business Case for Sustainability<br />Risk Management<br />Climate Change<br />Consumer Activism<br />Legislation<br /...
Clean Technology<br /><ul><li>develop new competencies
pursue leapfrog innovation </li></ul>Base of the Pyramid<br /><ul><li>meet unmet needs
raise the base of the pyramid</li></ul>Product Stewardship<br /><ul><li>lower product life cycle impact
increase transparency/accountability</li></ul>Pollution Prevention<br /><ul><li>minimize process waste
enhance resource productivity</li></ul>The Sustainable Value Portfolio<br />Tomorrow<br />Internal<br />External<br />Toda...
http://money.cnn.com/magazines/fortune/fortune_archive/2006/10/16/8390307/index.htm<br />Adobe<br />
http://money.cnn.com/2006/08/22/news/economy/pluggedin_gunther.fortune/index.htm<br />
Consumer Activism<br />Nike<br />Levi’s<br />McDonald’s<br />Starbucks<br />Wal-Mart<br />
EU Directives<br />ROHS – Restriction of Hazardous Substances (Atrazine)<br />REACH – Registration, Evaluation and Authori...
Increasing Number of Consumers Interested in Sustainable Goods<br />http://foodfreedom.wordpress.com/2010/02/01/gmo-crops-...
http://www.guayaki.com/index.php?p=about&id=86<br />
http://www.clifbar.com/ourstory/document.cfm?location=environment&websubsection=recycled<br />
Measure What Matters<br />Challenge<br />All Aspirations Annual Report<br />Qualitative stories<br />Quantitative metrics ...
Clif Bar’s Triple Bottom Line<br />Sustaining our Brands<br />Sustaining our Business<br />Sustaining our People<br />Sust...
Interface’s Triple Bottom Line<br />http://www.interfacesustainability.com/<br />
Interface’s Triple Bottom Line<br />http://www.interfacesustainability.com/<br />
Biomimicry – Fuel efficient design<br /><ul><li>Mercedes lowers the air resistance of concept car by modeling the car afte...
http://design-for-india.blogspot.com/2009/02/world-economic-forum-sustainability.html<br />
Triple Bottom Line<br />http://www1.indstate.edu/facilities/sustainability/<br />
Mark Albion, Founder, Net Impact<br /><ul><li>A good business uplifts the human spirit and helps alleviate poverty and suf...
The Good Life</li></ul>http://www.youtube.com/watch?v=k7JlI959slY<br />
Accounting Discipline’s Contributions<br />Disclosures and Reporting<br />Decision-making<br />Market Mechanisms<br />Inve...
Accounting Discipline’s Contributions<br />Disclosure of Environmental Liabilities<br />GAAP Guidelines<br />Reporting on ...
Founded in 1997 by the Coalition for Environmentally Responsible Economies<br />Supported by United Nations Environment Pr...
GRI Measures…<br />Performance Indicators:<br />Economic<br />Environmental<br />Social<br />Labor Practices<br />Human Ri...
Decision-making<br />Costing Issues and Cost-Benefit Analysis<br />Waste minimization<br />Energy Consumption Reduction<br...
Investment Analysis<br />Social Return on Investment<br />A compliment to the financial bottom line<br />Computed on the s...
Other<br />Eco Efficiency<br />Guideline areas<br />Water use, Energy use, Global warming contribution, Ozone depleting su...
What can you do<br />Learn as much as you can<br />Question the status quo<br />Get involved at Cal Poly<br />Invest proac...
What can you do?<br /><ul><li>Vote with your $$$$
Shop Local
Rethink – Use less stuff</li></ul>			    No more plastic bottles<br /><ul><li>Reduce – Turn things off, shorter showers
Reuse – Use 2 sides of paper
Recycle – Paper, glass, cardboard, etc.
Share –
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Making the business case fall 2010

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Prepared for BUS 215 Managerial Accounting
Cal Poly State University
Kate Lancaster

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Making the business case fall 2010

  1. 1. Making the Case for Sustainable Business Practices:An Introduction<br />
  2. 2. Outline<br />What does sustainability really mean?<br />Why is sustainability such a hot topic?<br />Making the business case for sustainability<br />Accounting and sustainability<br />What can you do?<br />
  3. 3. What does sustainability mean?<br />Your definition<br />To me, sustainability is a future where beings (human and otherwise) live fulfilled lives as part of thriving ecosystems. Living sustainably means expanding the beneficial and minimizing the negative consequences of our actions on others in our community (and expanding our definition of community). <br />
  4. 4. Definition of Sustainable Development<br /> Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. It contains within it two key concepts: <br />the concept of 'needs', in particular the essential needs of the world's poor, to which overriding priority should be given; and <br />the idea of limitations imposed by the state of technology and social organization on the environment's ability to meet present and future needs.<br />http://www.worldinbalance.net/agreements/1987-brundtland.html,<br />Gro Harlem Brundtland, Norwegian politician, diplomat, and physician <br />
  5. 5. Definition of Sustainable Development<br /> Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. It contains within it two key concepts: <br />the concept of 'needs', in particular the essential needs of the world's poor, to which overriding priority should be given; and <br />the idea of limitations imposed by the state of technology and social organization on the environment's ability to meet present and future needs.<br />http://www.worldinbalance.net/agreements/1987-brundtland.html,<br />Gro Harlem Brundtland, Norwegian politician, diplomat, and physician <br />
  6. 6. WHY NOW?<br />
  7. 7. http://www.sustainablescale.org/images/uploaded/Population/World%20Population%20Growth%20to%20205.JPG<br />
  8. 8.
  9. 9. The 209 toxins found in mother’s milk of Inuit women living in North Alaska<br />TRASH<br />4.4 pounds/person/day<br />38 Billion water bottles/year >$1B<br />125M phones/year, 65,000 Tons<br />http://www.nytimes.com/2005/01/09/magazine/09TOXIC.html?pagewanted=all&position=<br />http://safemilk.org/<br />
  10. 10. North Pacific central gyre - A floating island of plastic larger than Texas<br />Albatross on the Kure-Atoll<br />LA River after a storm<br />http://www.5gyres.org<br />
  11. 11. http://ohvec.org/index.html<br />
  12. 12.
  13. 13. Impact on other species<br />http://www.earthend-newbeginning.com/<br />http://www.jimmau.com/CONSEQUENCES/<br />http://greenoc.freedomblogging.com/2010/03/11/starving-dying-sea-lion-pups-wash-ashore/20937/<br />http://www.ngoilgas.com/news/gulf-of-mexico-spill-dome-sent-to-contain-leak/<br />
  14. 14. http://www.biologicaldiversity.org/programs/climate_law_institute/350_reasons/index.html<br />Species Extinction<br />
  15. 15. Starving bear on Vancouver Island. <br />Very reduced salmon run Spring and Fall, 2008.<br />
  16. 16. http://data.giss.nasa.gov/gistemp/2005/<br />
  17. 17. http://www.mirror.co.uk/news/top-stories/2010/08/10/pakistan-flood-disaster-could-be-worse-than-the-boxing-day-tsunami-kashmir-earthquake-and-haiti-earthquake-combined-115875-22476903/<br />http://www.latimes.com/news/nationworld/world/la-fg-aussie-duststorms24-2009sep24,0,418657.story<br />http://www.usatoday.com/weather/news/2009-07-12-iraq-sandstorms-drought_N.htm<br />http://www.xray-mag.com/en/content/coral-reef-growth-grind-halt<br />
  18. 18. Where is our food produced?<br />http://ukiahcommunityblog.wordpress.com/category/dave-smith-blog<br />
  19. 19. l<br />http://transition-times.com/blog/2009/12/21/will-2010-food-crisis-bring-financial-armageddon/<br />http://www.commondreams.org/headline/2010/08/06-4<br />http://www.permaculture.org.au/images/water_crisis_india.jpg<br />
  20. 20. The Role of Business<br />
  21. 21. “We are all passionate about making real progress regarding the environment.  By working together, we can help each other save money, reduce greenhouse gas emissions and pass the savings on to our customers.  Sustainability is good for the environment, and it’s also good for business.”<br />"We asked ourselves: If we had known 10 years ago what challenges we would face today, what would we have done different? What struck us was: This world is much more fragile than any of us would have thought years ago." <br />Who said this?<br />
  22. 22. Lee Scott, Walmart CEOJuly 12 and Sept 25, 2006<br />http://www.walmartstores.com/GlobalWMStoresWeb/navigate.do?catg=355<br />
  23. 23. If Wal-Mart was a country it would rank as the 21st largest in the World<br />1 in 120 people work for Wal-Mart in US, 100,000 global suppliers – How’s that for reach!<br />http://exinglobal.typepad.com/going_global/2006/09/the_country_of_.html<br />
  24. 24. It is not just WalMart<br />http://www.unglobalcompact.org/news/42-06-22-2010<br />http://www.nicholasinstitute.duke.edu/globalcompact/<br />
  25. 25. http://www.wbcsd.org/templates/TemplateWBCSD5/layout.asp?type=p&MenuId=MTEzOQ&doOpen=1&ClickMenu=LeftMenu<br />
  26. 26. The Business Case for Sustainability<br />Risk Management<br />Climate Change<br />Consumer Activism<br />Legislation<br />Business Opportunities<br />Demand for “green” products<br />Cost savings<br />
  27. 27. Clean Technology<br /><ul><li>develop new competencies
  28. 28. pursue leapfrog innovation </li></ul>Base of the Pyramid<br /><ul><li>meet unmet needs
  29. 29. raise the base of the pyramid</li></ul>Product Stewardship<br /><ul><li>lower product life cycle impact
  30. 30. increase transparency/accountability</li></ul>Pollution Prevention<br /><ul><li>minimize process waste
  31. 31. enhance resource productivity</li></ul>The Sustainable Value Portfolio<br />Tomorrow<br />Internal<br />External<br />Today<br />From presentation given by Stuart Hart<br />
  32. 32. http://money.cnn.com/magazines/fortune/fortune_archive/2006/10/16/8390307/index.htm<br />Adobe<br />
  33. 33. http://money.cnn.com/2006/08/22/news/economy/pluggedin_gunther.fortune/index.htm<br />
  34. 34. Consumer Activism<br />Nike<br />Levi’s<br />McDonald’s<br />Starbucks<br />Wal-Mart<br />
  35. 35. EU Directives<br />ROHS – Restriction of Hazardous Substances (Atrazine)<br />REACH – Registration, Evaluation and Authorization of Chemicals <br />WEEE - Waste Electrical and Electronic Equipment<br />
  36. 36. Increasing Number of Consumers Interested in Sustainable Goods<br />http://foodfreedom.wordpress.com/2010/02/01/gmo-crops-super-weed-time-bomb-explodes/<br />
  37. 37. http://www.guayaki.com/index.php?p=about&id=86<br />
  38. 38. http://www.clifbar.com/ourstory/document.cfm?location=environment&websubsection=recycled<br />
  39. 39. Measure What Matters<br />Challenge<br />All Aspirations Annual Report<br />Qualitative stories<br />Quantitative metrics (including financial and supply chain input/process/output measures)<br />Evaluated against the 5 Aspirations<br />
  40. 40. Clif Bar’s Triple Bottom Line<br />Sustaining our Brands<br />Sustaining our Business<br />Sustaining our People<br />Sustaining our Community<br />Sustaining our Planet<br />
  41. 41. Interface’s Triple Bottom Line<br />http://www.interfacesustainability.com/<br />
  42. 42. Interface’s Triple Bottom Line<br />http://www.interfacesustainability.com/<br />
  43. 43. Biomimicry – Fuel efficient design<br /><ul><li>Mercedes lowers the air resistance of concept car by modeling the car after the Box fish.</li></li></ul><li>Solar Stoves in Somalia<br />http://www.tucacas.info/sunfirecooking/index.htm<br />
  44. 44. http://design-for-india.blogspot.com/2009/02/world-economic-forum-sustainability.html<br />
  45. 45. Triple Bottom Line<br />http://www1.indstate.edu/facilities/sustainability/<br />
  46. 46. Mark Albion, Founder, Net Impact<br /><ul><li>A good business uplifts the human spirit and helps alleviate poverty and suffering on the planet.
  47. 47. The Good Life</li></ul>http://www.youtube.com/watch?v=k7JlI959slY<br />
  48. 48. Accounting Discipline’s Contributions<br />Disclosures and Reporting<br />Decision-making<br />Market Mechanisms<br />Investment Analysis<br />Other<br />
  49. 49. Accounting Discipline’s Contributions<br />Disclosure of Environmental Liabilities<br />GAAP Guidelines<br />Reporting on Sustainable Business Practices<br />Voluntary disclosure<br />Global Reporting Initiative guidelines<br />Costing Issues and Cost-Benefit Analysis<br />Waste minimization<br />Energy Consumption Reduction<br />
  50. 50. Founded in 1997 by the Coalition for Environmentally Responsible Economies<br />Supported by United Nations Environment Program<br />Permanent Institution in Amsterdam<br />Now works with United Nations Global Compact<br />First Guidelines (G1) established in 2000<br />Revised in 2004 (G2)<br />Revised in 2006 (G3) <br />1000+ Corporations spread across 60 countries participate in the GRI<br />Global Reporting Initiative<br />
  51. 51. GRI Measures…<br />Performance Indicators:<br />Economic<br />Environmental<br />Social<br />Labor Practices<br />Human Rights <br />Society <br />Product Responsibility<br />“Sector Supplements” provide additional reporting requirements fore specific industries <br />Reporting Reference<br />
  52. 52. Decision-making<br />Costing Issues and Cost-Benefit Analysis<br />Waste minimization<br />Energy Consumption Reduction<br />Proper allocation of environmental costs to products for product introduction, retention and elimination<br />Financing and Costing a Cleanup site<br />Development of a Balanced Scorecard<br />Qualitative Issues<br />
  53. 53. Investment Analysis<br />Social Return on Investment<br />A compliment to the financial bottom line<br />Computed on the same investment as financial ROI<br />
  54. 54. Other<br />Eco Efficiency<br />Guideline areas<br />Water use, Energy use, Global warming contribution, Ozone depleting substances, Waste<br />
  55. 55. What can you do<br />Learn as much as you can<br />Question the status quo<br />Get involved at Cal Poly<br />Invest proactively<br />Consume conscientiously<br />
  56. 56. What can you do?<br /><ul><li>Vote with your $$$$
  57. 57. Shop Local
  58. 58. Rethink – Use less stuff</li></ul> No more plastic bottles<br /><ul><li>Reduce – Turn things off, shorter showers
  59. 59. Reuse – Use 2 sides of paper
  60. 60. Recycle – Paper, glass, cardboard, etc.
  61. 61. Share –
  62. 62. Study – Environmental Studies minor </li></ul>http://storyofstuff.com/, http://studentlife.calpoly.edu/ori/wow/newstudents/sustainability.asp <br />
  63. 63. http://www.cleanair-coolplanet.org<br />
  64. 64. http://www.focusthenation.org/<br />http://focusthenationslo.pbwiki.com/<br />
  65. 65. http://www.focusthenation.org/<br />http://focusthenationslo.pbwiki.com/<br />
  66. 66. Empower Poly Coalition - 24 student Clubs<br />http://www.empowerpoly.calpoly.edu/<br />
  67. 67. College of Business – Undergraduate Chapter<br />Thursdays, 11-12, 03-114<br />
  68. 68. Summary<br />Sustainability means living within the earth’s natural limits.<br />Businesses are finding there are benefits to reducing their footprint and are creating business opportunities<br />You have much to offer: critical thinking, assessing performance, measuring what matters<br />
  69. 69. Cell phones, coltran, and lowland gorillas<br />http://homepage.mac.com/wildlifeweb/gorillas/news/index.html<br />http://www.epa.gov/epaoswer/education/pdfs/life-cell.pdf<br />
  70. 70. Career Opportunities<br />“Sustainability is everywhere. With that in mind, jobs in sustainability are everywhere.”<br />Treehugger Jobs<br />GreenBiz<br />SustainableBusiness<br />http://www.emagazine.com/view/?3943<br />http://ask.metafilter.com/60029/Where-are-the-green-jobs-going, April 5, 2007<br />
  71. 71. Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has.<br />Margaret Mead<br />US anthropologist (1901 - 1978)<br />

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