The document summarizes a presentation about corporate sustainability and social responsibility. It discusses concepts like the triple bottom line and CSR. It provides examples of sustainability reporting and initiatives from companies like Dell, Walmart, Patagonia and others. It addresses benefits of sustainability and stresses that protecting people and the environment is an expectation for businesses.

1. Corporate Sustainability Glenn Fishler, President/CEO Diane Firu, Consultant

2. Agenda Introduction to EORM Sustainability Concepts Corporate Transparency Sustainability Examples Discussion and Questions © 2011 EORM, Inc.

3. Agenda Introduction to EORM Sustainability concepts Corporate transparency Sustainability examples Discussion and questions © 2011 EORM, Inc.

4. Who We Are History Founded in 1990 Founded by Environmental, Health and Safety (EHS) managers from industry Today 5 offices in US 110 employees EHS and Sustainability Consulting 350 customers/year- small to very large companies ISO 14001 and OHSAS 18001 Certified Climate Registry participant © 2011 EORM, Inc.

5. Sampling of Our Clients © 2011 EORM, Inc. EORM Confidential -- Not for Distribution

6. Agenda Introduction to EORM Sustainability Concepts Corporate Transparency Sustainability Examples Discussion and Questions © 2011 EORM, Inc.

7. Kermit was a Pessimist © 2011 EORM, Inc. Maybe it isn’t easy to be green… but it’s NOT that tough either Think Big Picture: Long-term profits Footprint on the planet Well-being of workers and the community

8. Buzz Words: Sustainability, 3P, 3E The Triple Bottom Line, CSR © 2011 EORM, Inc. Ethics Human Rights Labor Issues Diversity Philanthropy Lifecycle Strategy Reduce Externalities Minimize Resource Use Jobs & Growth Cost Reduction Green Products To meet the needs of the present without compromising the ability of future generations to meet their own needs Brundtland Commission 1983 People Planet Profit 3 P’s 3 E’s Equity Environment Economy

9. What is “CSR”? Corporate Social Responsibility (CSR) is corporate self-regulation integrated into the business model Socially responsible businesses accept responsibility for the impact of their activities on: Environment Consumers Employees Communities Stakeholders Socially responsible businesses choose to promote the public interest by voluntarily eliminating practices that harm human health and the environment © 2011 EORM, Inc.

10. What does it all mean to business? Treating people and the environment with respect This is an expectation Businesses must do good financially… and do well socially Some businesses see this as cost…others see opportunity… © 2011 EORM, Inc.

11. Do you prefer environmental protection vs. economic growth? © 2011 EORM, Inc.

12. All Over the News Media © 2011 EORM, Inc. March 7, 2011 Best Practices for Corporate Green Initiatives How do you drive change in big corporations? How do you market environment issues effectively? How do you choose the right technologies in the environmental…. February 18, 2011 Shareholders Offer a Spate of Climate and Environmental Resolutions According to the Investor Network on Climate Risk, a project of the sustainable investing collective Ceres, at least 66 resolutions relating to climate and… February 23, 2011 Consumers Driving ‘Greening’ of Supply Chain New research finds almost 77 percent of manufacturers feel they are being held accountable by customers to open up about the environmental impact of their businesses…

13. Driven by some dire warnings © 2011 EORM, Inc. March 9, 2011 Pace of polar ice melt 'accelerating rapidly': study

14. Magazines have “green” articles every month… © 2011 EORM, Inc.

15. Books, Books, and More Books © 2011 EORM, Inc.

16. Shareholders are driving too… © 2011 EORM, Inc. March 1, 2011 Ethical investment hits $11 trillion Socially responsible investment (SRI) hit $11 trillion in 2010. The increase was due to demand from European pension funds, universities and….

17. How do companies organize for sustainability? Should involve the whole organization Informal Bottom down approach Grassroots Green teams Formal Top down approach Chief Sustainability Officer © 2011 EORM, Inc. EMC2 Sustainability Organization

18. What are the benefits of sustainability? © 2011 EORM, Inc. From “Making Sustainability Work” by Marc J. Epstein

19. Agenda Introduction to EORM Sustainability Concepts Corporate Transparency Sustainability Examples Discussion and Questions © 2011 EORM, Inc.

20. Types of Reporting Required reporting Regulatory obligation to report Public company financials – Security and Exchange Commission (SEC) Air emissions – California Air Resources Board (CARB) Water quality – Regional Water Quality Control Board (RWQCB) Injury and Illness Rates – Occupational Safety and Health Administration (OSHA) Hazardous Waste – Department of Toxic Substance Control, Environmental Protection Agency (DTSC, EPA) Voluntary Reporting NO regulatory obligation to report Electricity usage Water usage Greenhouse gas emissions (for now…) © 2011 EORM, Inc.

21. CSR Reporting Corporate Social Responsibility (CSR) reporting is increasing every year Used to improve transparency about business operations and communicate with stakeholders © 2011 EORM, Inc.

22. Example Report - Dell © 2011 EORM, Inc.

23. Global Reporting Initiative (GRI) Network-based organization that developed the world’s most widely used sustainability reporting framework In 2010, 42% of S&P 500 Companies’ sustainability reports were GRI compliant Guidelines outline core content for reporting and are relevant to all organizations regardless of size, sector, or location Voluntary and flexible Grading scale based on level of disclosure (A-C) © 2011 EORM, Inc. EORM Confidential -- Not for Distribution

24. Overview of GRI Report EORM Confidential -- Not for Distribution © 2011 EORM, Inc.

25. Third-Party Reporting Greenhouse gas emissions Carbon Disclosure Project Climate Registry Carbon Trust Standard EPA Climate Leaders Water usage Carbon Disclosure Project – Water Project Industry Groups Chemical industry and “Responsible Care” Electronics industry and “EICC – Electronics Industry Citizenship Coalition” © 2011 EORM, Inc.

26. Agenda Introduction to EORM Sustainability Concepts Corporate Transparency Sustainability Examples Discussion and Questions © 2011 EORM, Inc.

27. Walmart and Supply Chain In July 2009, Walmart launched plans for a worldwide sustainable product index The supplier assessment covers: Energy and Climate Material Efficiency Nature and Resources People and Community Data used to select suppliers and drive change in the supply chain Walmart has over 100,000 global suppliers! © 2011 EORM, Inc. “ The index will bring about a more transparent supply chain, drive product innovation and, ultimately, provide consumers the information they need to assess the sustainability of products. If we work together, we can create a new retail standard for the 21st century.” Mike Duke, President and CEO, Wal-Mart Stores, Inc. July 16, 2009

28. Dell and Carbon Neutral Dell has a commitment to be the “greenest technology company on the planet” Achieved net zero global GHG emissions in 2008 Aggressive global energy-efficiency campaign Increasing purchases of green power Verified emission reductions and renewable energy certificates Dell has committed to absolutely reduce its own global operational GHG emissions by 40% from 2007 to 2015 by investing in on‐site renewable power In 2010 25% of global electricity needs were met by renewable sources Ranked #1 in 2010 Newsweek Green Rankings © 2011 EORM, Inc. “ We consider our commitment to our planet, our communities and our people integral parts of our business strategy.” Michael S. Dell, Chairman of the Board and CEO, Dell 2010 Sustainability Report Dell Ranked #1

29. Patagonia and Human Rights The outdoor apparel company promotes fair labor practices and safe working conditions throughout it’s supply chain Supplier screening process Patagonia Code of Conduct and training Supplier audits, third-party verification, and transparency In 2010 Patagonia audited 90% of its supply chain for social and environmental concerns Founding members of the Fair Labor Association (FLA), an independent multi-stakeholder verification and training organization that audits its factories © 2011 EORM, Inc. “ Build the best product, cause no unnecessary harm, and use business to inspire and implement solutions to the environmental crisis.” Patagonia Mission Statement

30. Take Away Messages Green is here for good… an expectation “ Sustainability” & “CSR” = protecting people and our planet, and making a profit © 2011 EORM, Inc.

31. Exercise You were just hired as the Chief Sustainability Officer for Nike You have been asked by the CEO to develop a sustainability strategy What are Nike’s sustainability challenges? What key areas will you focus on? What corporate goals would you set? © 2011 EORM, Inc.

32. Agenda Introduction to EORM Sustainability Concepts Corporate Transparency Sustainability Examples Discussion and Questions © 2011 EORM, Inc.

33. Discussion and Questions Glenn Fishler [email_address] Diane Firu [email_address] © 2011 EORM, Inc.

34. Resources Getting Green Done: Hard Truths from the Front Lines of the Sustainability Revolution by Auden Schendler Green to Gold: How Smart Companies Use Environmental Strategy to Innovate, Create Value, and Build Competitive Advantage by Daniel Esty and Andrew Winston The Triple Bottom Line: How Today's Best-Run Companies Are Achieving Economic, Social and Environmental Success -- and How You Can Too by Andrew W. Savitz and Karl Weber Making Sustainability Work by Marc J. Epstein Stages of Corporate Citizenship: A Developmental Framework by Philip Mirvis, Ph.D. and Bradley K. Googins, Ph.D. A Center for Corporate Citizenship at Boston College Monograph Strategy and Society: The Link Between Competitive Advantage and Corporate Responsibility. Michael Porter & Mark Kramer Harvard Business Review Bringing Society Into Strategy – The 5 R Framework. McKinsey Staff Paper #64 Check out: www.sustainablelifemedia.com © 2011 EORM, Inc.