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The Sustainable Value Framework

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Talk by Stuart L. Hart on "The Sustainable Value Framework"

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The Sustainable Value Framework

  1. 1. Copyright Stuart L. Hart 2011Copyright  Stuart  L.  Hart  2015   CEO  Breakfast:   Crea.ng  Sustainable  Value    Stuart  L.  Hart   Steven  Grossman  Chair  in  Sustainable  Business,   University  of  Vermont   S.C.  Johnson  Chair  Emeritus  in  Sustainable  Global   Enterprise,  Cornell  University   President,  Enterprise  for  a  Sustainable  World   Founder,  Emergent  InsItute,  Bangalore,  India      
  2. 2. Copyright Stuart L. Hart 2011Copyright  Stuart  L.  Hart  2015   What  comes  to  mind  when  you   hear  the  term  “sustainability”  in  a   business  context?      
  3. 3. Copyright Stuart L. Hart 2011Copyright  Stuart  L.  Hart  2015   The  Road  to  Sustainable  Enterprise   1945-1960s Pollution Denial “Smell of money” (oblivious) 1970-80s End-of-pipe regulation “Pay to reduce negative impact” (trade-off) Obligation Mid 1980s-1990s Greening • pollution prevention • product stewardship “Eco-efficiency” (win-win) Opportunity 2000’s- Present Beyond Greening • clean technology • base of the pyramid “Eco-effectiveness” (positive force) Reorientation Green Leap
  4. 4. Copyright Stuart L. Hart 2011Copyright  Stuart  L.  Hart  2015   Buzzwords   •  Environmental  Management   •  Corporate  Social  Responsibility   •  Greening   •  Industrial  Ecology   •  Stakeholder  Management   •  Life-­‐Cycle  Management   •  PolluIon  PrevenIon  (P2)   •  Sustainable  Development   •  Design  for  Environment  (DfE)   •  Green  Design   •  Urban  Reinvestment   •  Brownfield  Redevelopment   •  ISO  14001   •  Waste  ReducIon   •  Closed  Loops   •  Resource  ProducIvity   •  Sustainable  Technology   •  Radical  TransacIveness   •  Systems  Thinking   •  Corporate  Governance   •  Clean  Technology   •  Eco-­‐Efficiency   •  Eco-­‐EffecIveness   •  Biomimicry   •  Triple  Bo^om  Line   •  Inclusive  Capitalism   •  Base  of  the  Pyramid   •  Majority  Business   •  Corporate  CiIzenship   •  Voluntary  RegulaIon   •  Social  Entrepreneurship   •  Full  Cost  AccounIng   •  Pro-­‐Poor  Business   •  Risk  Management   •  Leapfrog  Technology   •  Cradle  to  Cradle   •  RestoraIve  Technology   •  B24B   •  Take-­‐Back   •  Transparency  
  5. 5. Copyright Stuart L. Hart 2011Copyright  Stuart  L.  Hart  2015   The  Many  Faces  of   Shareholder  Value   Growth Path Trajectory New Skills Repositioning Cost & Risk Reduction Reputation Legitimacy Building Tomorrow’s Opportunity Managing Today’s Business Nurturning Internal Capabilities Engaging External Constituencies
  6. 6. Copyright Stuart L. Hart 2011Copyright  Stuart  L.  Hart  2015   The  Buzzword  Sort   Tomorrow Today ExternalInternal Growth Path & Trajectory Innovation & Repositioning Cost & Risk Reduction Reputation & Legitimacy• Greening • Emission Reduction • Eco-Efficiency • Risk Management • Environmental Management • ISO 14001 • Waste Reduction • Resource Productivity • Sustainable Development • Pro-Poor Business • Urban Reinvestment • Brownfield Redevelopment • Inclusive Capitalism • Community Capitalism • Civic Entrepreneurship • Radical Transactiveness • B24B • Life-Cycle Management • Design for Environment (DfE) • Green Design • Stakeholder Management • Corporate Citizenship • Full Cost Accounting • Take-back • Transparency • Corporate Governance • Eco-Effectiveness • Biomimicry • Leapfrog Technology • Sustainable Technology • Knowledge & Service Intensity • Cradle to Cradle • Closed Loops • Restorative Technology • Systems Thinking Pollution Prevention Product Stewardship Clean Technology Base of the Pyramid
  7. 7. Copyright Stuart L. Hart 2011Copyright  Stuart  L.  Hart  2015   Tomorrow Today ExternalInternal Strategy: Clean Technology Deploy the sustainable competencies of the future Corporate Payoff: Innovation & Repositioning Strategy: Base of the Pyramid Co-create new business to meet unmet needs Corporate Payoff: Growth & Trajectory Strategy: Pollution Prevention Minimize waste and emissions from operations Corporate Payoff: Cost & Risk Reduction Strategy: Product Stewardship Integrate stakeholder views into business processes Corporate Payoff: Reputation & Legitimacy Sustainable Value Drivers • Pollution • Consumption • Waste Drivers • Disruption • Clean Tech • Footprint Drivers • Civil Society • Transparency • Connectivity Drivers • Population • Poverty • Inequity The  Sustainable  Value  Framework  
  8. 8. Copyright Stuart L. Hart 2011Copyright  Stuart  L.  Hart  2015   What  is  Your  Porbolio?   Tomorrow Today ExternalInternal Pollution Prevention Base of the Pyramid Clean technologies Product Stewardship
  9. 9. Copyright Stuart L. Hart 2011Copyright  Stuart  L.  Hart  2015   What  is  the  Typical  Corporate    Porbolio  Today?     Tomorrow Today ExternalInternal Pollution Prevention Clean Technology Product Stewardship Evolutionary Routines “Six Sigma Black Belt” Base of the Pyramid
  10. 10. Copyright Stuart L. Hart 2011Copyright  Stuart  L.  Hart  2015   Base of the Pyramid Tomorrow’s  Opportunity     Tomorrow Today ExternalInternal Pollution Prevention Clean Technology Product Stewardship Revolutionary Routines “New Form of Martial Art”
  11. 11. Copyright Stuart L. Hart 2011Copyright  Stuart  L.  Hart  2015   Two  Levels  of  Sustainability   Focus on Existing: products processes suppliers customers shareholders Characteristics: Incremental Continuous Improvement Rationalizes Industry Strategies for Greening Focus on Emerging: technologies markets partners needs stakeholders Characteristics: Discontinuous Creative Destruction Restructures Industry Strategies for Beyond Greening Stuart L. Hart (1997) Beyond Greening: Strategies for a Sustainable World
  12. 12. Copyright Stuart L. Hart 2011Copyright  Stuart  L.  Hart  2015   Joseph Schumpeter Prophet of Innovation
  13. 13. Copyright Stuart L. Hart 2011Copyright  Stuart  L.  Hart  2015   •  Mission   – To  dramaIcally  increase  the  number  and  success   of  intrapreneurs  and  entrepreneurs  focused  on   socially  inclusive  and  environmentally  sustainable   business  development  for  the  21st  century   •  Vision   – To  create  a  new  model  of  entrepreneurial  training   and  a  complete  innovaIon  ecosystem  appropriate   to  the  challenges  we  face  in  the  21st  century   www.emergentinstitute.net
  14. 14. Copyright Stuart L. Hart 2011Copyright  Stuart  L.  Hart  2015   University  of  Vermont   5–Principles of the SEMBA Program --Prepare a new breed of business leaders to shape the future of sustainable global commerce --Deliver a full MBA toolkit to prepare students to create profitable and sustainable business opportunities --Deliver a program focused 100% on sustainable entrepreneurship --Accelerate the return to a successful career (the program is only 12 months long; 8 months of classroom experience; 4 months of hands-on practicum!) --Learn by doing: Hands-on, true, meaningful experiential learning with companies and entrepreneurs here in Vermont and around the world
  15. 15. Copyright Stuart L. Hart 2011Copyright  Stuart  L.  Hart  2015   “The  next  20  years  will  not  look   anything  like  the  last  20…”   Chris Martenson (2010) The Crash Course
  16. 16. Copyright Stuart L. Hart 2011Copyright  Stuart  L.  Hart  2015   “…global  capitalism  stands  at  a  juncture   similar  to  the  one  faced  in  1914.     Between  1914  and  1945,  world  war,   depression,  and  fascism  almost   succeeded  in  elimina.ng  capitalism   from  the  face  of  the  Earth.    The   problems  global  capitalism  now  faces   (global-­‐scale  environmental  change,   economic  inequity,  financial   meltdown)  are  no  less  daun.ng.     Construc.vely  engaging  these   challenges  will  be  the  key  to  ensuring   that  capitalism  con.nues  to  thrive  in   the  coming  century—to  everyone’s   benefit.”  
  17. 17. Copyright Stuart L. Hart 2011Copyright  Stuart  L.  Hart  2015   Stuart  L.  Hart   Stuart.Hart@uvm.edu      www.stuartlhart.com     www.e4sw.org      

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