This document outlines the business case for adopting global sustainable strategies. It discusses how mainstream media and an awakened public are driving companies to address sustainability issues like poverty, hunger, and climate change. Adopting corporate sustainability practices can help solve these problems while also being good for business by appealing to consumers, employees, and investors. The document provides examples of banks and investors taking action on sustainability and discusses how managing risks, employee health and safety, and responsible product development can be linked to sustainability. Overall, the document argues that sustainability initiatives can reduce costs while improving productivity, workforce health, and a company's reputation.

1. The Business Case for
Global Sustainable
Strategies
Bernard Fontaine, Jr., M.T. ,M.Sc., CIH, CSP

2. Mainstream Media / Awakened Public

3. Mainstream Media / Awakened Public

4. Sustainability “3-Legged Stool”

5. Morale Imperative Approach
The World’s Problems
- poverty - loss of biodiversity - lack of basic freedoms - climate change
- hunger - resource depletion - environmental degradation - inequity
Corporate Sustainability
- companies are essential to solving these problems Social Responsibility
- society can withhold their license to operate if they don’t TBL reporting
Happens to be
Good for Business
Consumers
SR
I - statistical correlations
- case studies of select companies
Employees
Gov

7. Banks and Investors Taking Action
• Citigroup: largest U.S. bank; (Jan 06) will reduce
GHGs from its 13,000 properties by 10% by 2011
• Bank of America: second largest U.S. bank; (Apr
05) $3K rebates on employee hybrids; (Mar 07)
$20B over 10 years to support growth in
environmentally friendly activities and reduce global
warming; reduced mortgage rates on energy
efficient homes
• Goldman Sachs: (Nov 06) first major investment
bank to adopt a comprehensive environmental
policy; investing $1B in clean energy projects
• JP Morgan Chase: (Apr 05) adopted Equator
Principles
• 348 shareholder resolutions on ESG issues
2005 (up 16% from 2003); 177 social resolutions
reached a vote (up 22% from 2003)

8. Risk Governance
XWe Cannot Avoid
XNot Effective
Limited Insurance
Coverage
Business Continuity
Management

9. Sustainability as a Responsible
Care Initiative
Sustainability is linked to
♦ Operating discipline
♦ Raw material selection
♦ Supply chain
optimization
♦ Sustainable product
development
♦ Social responsibility
commitments

10. Sustainability “Old and New Models”
♦ Environmental Water & Air Pollution
♦ Occupational Injuries/Illness & Disease
♦ Unsafe/Unhealthful Work Environment
♦ Untrained workforce in health & safety
♦ Unsafe/healthful product for consumer
♦ Hazardous raw materials
New ModelOld Model
♦ Reduced air and water pollution
♦ Written SOPs and business rules
♦ Integrated safety management plan
♦ Application of risk governance
♦ Engagement of all stakeholders
♦ Product stewardship and lifecycle

11. Workplace Fatalities: 2.3M Deaths/Yr.
Communicable
Diseases 27%
Malignant
Neoplasms 27%
Other
Fatalities 2%
Respiratory System
Diseases 6%
Circulatory
System
Diseases 22%
Accidents &
Violence 16%

12. Keys for Success in
Sustainable Development
Maintain the balance between economic growth, environment,
occupational health and safety, and social aspects by:
♦ An integrated approach for business operations;
♦ Partnerships and collaboration among all stakeholders;
♦ A cross-disciplinary approach using OESH professionals;
♦ Control all risks and develop a business continuity plan
Profit
Planet
PeopleOccupational health
and safety equity
Natural resources
and environment

13. Roles and Responsibilities
VALDEZ
1948: Declaration of human rights
1961: WWF, Amnesty International
1970s: Environmental movements in air, water, and land pollution
1980s: 1984: Bhopal; 1986: Chernobyl; 1989: Exxon Valdez…
2002: Enron, WorldCom…
2010: BP Deep Water Horizon, mine explosions in Chile, WV, and China
2011: Fukushima Daiichi nuclear plant, Conoco/Phillips oil spill in China

14. Global Framework and
Initiatives
SarbOx
The search for solutions is happening on a global scale and is being led by both
public institutions and as part of private initiatives. Solutions include new
legislation, stakeholder partnerships, voluntary agreements, codes of conduct,
multilateral agreements, interdependent actions, etc.

15. Environmental Health and
Safety as New Benefit Area
Global Warming
Water, Air, &
Land Pollution
Resource
Depletion
Ozone
Depletion
Reduction
of Biodiversity
Population
Increase &
Economic Growth

16. Business Continuity Recovery
Model
Success, recovery or failure?
Critical
recovery point
B
No BCM – lucky
escape
C No BCM –
usual outcome
A
Fully tested
effective BCM
Levelofbusiness

17. Land and Water Pollution
Agriculture + industrial activities + waste generation
- Intensive use of chemical fertilizers storm water runoff
- Intensive land and water exploitation
Global Consumption of Fertilizers
0
40000
80000
120000
160000
1960 1970 1980 1990 2000
Year
KtonsofNPKnutrient
Fertilizer consumed

18. Air Pollution
Main environmental threat to human health
-SO2 and NO2 emissions  Acid rain
- Carbon monoxide and Carbon dioxide 
Global climate change
- Particulates  Respiratory disease
CITY PARTICLES
(μg/m3) [1995]
SO2
(μg/m3) [1998]
NO2
(μg/m3) [1998]
WHO STANDARDS < 90 < 50 < 50
PARIS 14 14 57
NEW YORK .. 26 79
BEIJING 377 90 122
BOMBAY 240 33 39
TOKYO 49 18 68
STOCKHOLM 9 3 20

19. Environmental and Occupational Health
and Safety Market Segments
♦ Building and Construction
♦ Aerospace and Aviation
♦ Chemicals
♦ Energy and Utilities
♦ Food and Beverage
♦ Hospitality
♦ Manufacturing
♦ Mining and Metals Processing
♦ Oil and Gas
♦ Pulp and Paper
♦ Transportation

20. Roadmap Path Forward
Key Capabilities / Core Competencies
Risk Governance
Use sustainability principles to drive project experience toward risk
communication, risk assessment, risk management, and risk planning
Use sustainability in modeling and decision support tools to include root
cause analysis related to occupational safety and health and environmental
issues
Use sustainability to enhance product line to analysis of natural disaster
likelihood and impacts of climate change (supports flood /drought damage,
tornados/hurricanes, and consequence of business interruption)
Independent Verification and Validation and Alternatives (VV&A) Analysis
Use sustainability to evaluate business investment / acquisition cost and
performance models in situations of uncertainty, product stewardship,
workforce development, and lifecycle analysis
Use sustainability in economic risk modeling applications involving both
occupational and environmental health and safety

21. Roadmap Path Forward
Key Capabilities / Core Competencies
Quality Management and Certification can use sustainability to:
♦Expand role of professional certified auditors for ISO standards through
quality evaluations
♦Meet business requirements of ISO 9000, 14000, and 26000
♦Synchronize and innovate offerings for training, and education while
promoting other business-related services
New Occupational and Environmental Health and Safety (OEHS) Consulting
Products and Services can use sustainability to:
♦Develop as a center of excellence to support business development
and diverse growth into other market segments
♦Promote risk governance principles to manage risk
♦Align GRI index to include all aspects of OEHS
BLUF: Sustainability is an innovative index of excellence

22. Roadmap Path Forward

23. Implementing Sustainable
Development
Has your company taken any SD initiatives?
Can you identify any gaps?
What can you do as an individual, as a team,
function or company, to contribute to
limit use of energy, water and other
resources?
What resources will enable you to achieve
this? Can you identify any barriers?
Alternative model: The Sigma Guidelines provide a systematic model of
sustainability management (www.projectsigma.com).
Assess the
situation
Implement
a strategy
Develop a
strategy
Measure
success

24. 5 Stages and Emerging Drivers
5. Purpose /
Passion
4. Integrated Strategy
3. Beyond Compliance
2. Compliance
1. Pre-Compliance
• Eco-Efficiencies
• Regulatory/Litigious Threat
• Public Relation Crisis
• Strong Leadership
• Innovative Planning
• Regulatory Pressure / Enforcement
• NGO Social/Political Pressure
P r o a c t I v e
R e a c t I v e
• Business Opportunities – “Carrots”
• Risk Management – “Sticks”

25. The Sea of Demanding Stakeholders
Company Value
Non-financials
/ Reputation
Financials
Employees
Customers
Mainstream Media
Economists
Scientists
NGOs / Civil Society
Competitors
Global Markets / EU
Governments at all levels
Banks & InsurersAwakened Public
Shareholders & Investors

26. Mega-Issues + Stakeholders = New Market Forces
Company Value
Non-financials
Financials
Customers
Mainstream Media
NGOs / Civil Society
Employees
Competitors ScientistsGovernments at all levels
Banks & InsurersAwakened Public
Shareholders & Investors
PandemicsPandemicsErosion
of Trust
Erosion
of Trust
Water
Crisis
Water
Crisis
Pollution &
Health
Pollution &
Health
Energy
Crisis
Energy
Crisis
Climate
Crisis
Climate
Crisis
Climate
Crisis
Climate
CrisisClimate
Crisis
Climate
CrisisOther …Other …
Global Markets / EU
Economists

27. Two-part Business Case
Company Value
Non-financials
/ Reputation
Financials
Customers
Mainstream Media
Economists
Scientists
NGOs / Civil Society
Employees
Competitors
Global Markets / EU
Governments at all levels
Banks & InsurersAwakened Public
Shareholders & Investors

28. 1. Standardize senior leadership approach
 Include SD in vision / mission / strategies
 Reinforce it as a business strategy rather than a compliance
requirement or philanthropy issue
 Avoid “green-washing” hype
 Visible support: speeches, questions, actions
2. Engage, empower, and innovate entire company
 Solicit ideas from the workforce
 Provide cross training and education of science and business
3. Align and synchronize performance metrics
 Develop measurement / management systems
 Integrate into recognition / reward systems
The Catch

29.
The Business Case for Sustainable
– Example: Cleaner Production
 Cost savings on water, energy, raw materials,
directly add to bottom-line result
 Improved efficiency = reduced waste/leakage
 Technology leadership
 Contribution to solve environmental issues
 Positive company reputation and brand name
Efficient use of water, energy, raw materials
Starting “at the source” (not end-of-pipe)

30.
The Business Case for Sustainable
– Example: Eco-Efficient Products
 Preferred by consumers = lower running cost
of equipments & tax breaks = lower cost in
the life cycle = company can place a price
premium = higher profits
 Technology leadership and brand recognition
 Contribution to solve environmental issues
 Less concern for the waste if using less toxic
materials = more appealing products
More efficient and eco-friendly products
Example: Energy Star products (the US)
Blue Angel (Germany)

31. Occupational Health and
Safety as New Benefit Area

32. Occupational Health and
Safety as New Benefit Area
Projected Prevalence of Chronic Conditions
Number of People With Chronic Conditions (in millions)
• Between 2000 and 2030
the number of Americans
with chronic conditions will
increase by 37 percent, to
over half of the population,
an increase of 46 million
people.
Source: Wu, S. and Green, A. (2000). Projection of Chronic Illness Prevalence and Cost Inflation. RAND Corporation in
Anderson, G. (2010) . Chronic Care: Making the Case for Ongoing Care. Robert Wood Johnson Foundation.
http://www.rwjf.org/pr/product.jsp?id=56828.

33. Occupational Health and
Safety as New Benefit Area
The Prevalence of Multiple Chronic Conditions
Percentage of All Americans• In 2006, 22 percent of all
Americans had at least one
chronic condition and 28
percent had two or more
chronic conditions.
• Thus, 50% of the population
was affected by a chronic
condition.
• As the population ages,
these percentages will
increase.
Source: Medical Expenditure Panel Survey, 2006 in Anderson, G. (2010). Chronic Care: Making the Case for Ongoing
Care. Robert Wood Johnson Foundation. http://www.rwjf.org/pr/product.jsp?id=56888.

34. Occupational Health and
Safety as New Benefit Area
Prevalence of Multiple Chronic Conditions
Increases with Age
Percentage of Population With Chronic Conditions
Source: Medical Expenditure Panel Survey, 2006 in Anderson, G. (2010). Chronic Care: Making the Case for Ongoing Care.
Robert Wood Johnson Foundation. http://www.rwjf.org/pr/product.jsp?id=56890.
• Prevalence of chronic
conditions increases at all
ages.
• 73% of people age 65 and
older have multiple
chronic conditions.

35. Occupational Health and
Safety as New Benefit Area
Healthcare Spending Almost Doubles with
People Who Have Chronic Disease
Average Annual Health Care Expense Per Person
Source: Medical Expenditure Panel Survey, 2006 in Anderson, G. (2010). Chronic Care: Making the Case for
Ongoing Care. Robert Wood Johnson Foundation http://www.rwjf.org/pr/product.jsp?id=57010.

36. Occupational Health and
Safety as New Benefit Area
Lost Productivity and Chronic Diseases

37. Occupational Health and
Safety as New Benefit Area
Productivity Losses and Selected
Chronic Conditions

38. Occupational Health and
Safety as New Benefit Area
Chronic Conditions and Average Annual
Days Lost by Age of Worker

39. Occupational Health and
Safety as New Benefit Area
(Estimated) Average Annual Cost of Absenteeism
per Employee by Chronic Condition

40. Occupational Health and
Safety as New Benefit Area
Why Should Employers Be Interested in
Addressing Chronic Diseases at Work?
• Workforce is aging – chronic disease burden growing!
Preventable illness makes up 70% of the total burden of disease and
their associated costs
10 modifiable risk factors account for approximately 25% of all
healthcare expenditures (Anderson, 2000)
Employer medical costs average $7910 per employee annually
(O’Donnell, 2010); as RFs increase, so do costs
Effective worksite health promotion programs have demonstrated a
positive impact on employee morale, employee health and risk
behaviors, productivity, health care costs and ROI range between
$3-$5 to $1

41. Occupational Health and
Safety as New Benefit Area
• Increase the proportion of worksites that offer an employee
health promotion program to their employees.
• Increase the proportion of worksites that offer nutrition or weight
management classes or counseling.
• Increase the number of employed adults that have access to and
participate in employer-based exercise facilities and exercise
programs
• Reduce the rate of illness and injury cases involving days away
from work due to overexertion or repetitive motion.
• Reduce occupational skin diseases or disorders among full-time
workers
• Reduce new cases of work-related, noise-induced hearing loss
Healthy People 2020
Worksite Health Promotion-Related Objectives

42. The Business Case for Sustainable
– Example: Health and Safety
 Reduced medical costs for employees
 Fewer restricted or lost working days
 Increase in productivity and quality of life
 More efficient/productive workforce
 Happy, health/safety conscious
consumers
 Positive company reputation/brand name
 Access to highly qualified human capital
Healthier and happy workforce,
better neighbors, healthier and
safer products, lower risks, and
reduced impact on the environment

43. What would success
look like?....
♦ A widely-shared synchronized understanding of the role of
occupational and environmental sustainability
♦ Clear alignment behind key strategic objectives
♦ Strong and effective global investment capacity for
shareholders
♦ Unification, standardization, and alignment of all
stakeholders
♦ Effective internal and external collaboration and innovation
of products and services
♦ An emphasis on continual learning (from both success and
failure)…

44. Questions?