This document discusses the need for leadership in environmental sustainability. It notes that current business practices are depleting natural resources and harming the environment and human health. The document argues that a new paradigm of sustainability is needed that requires major changes in government policies, business practices, and consumer behavior. It provides principles and best practices for integrating sustainability into a company's leadership, business strategy, organizational culture, and operations to create long-term value for all stakeholders and a competitive advantage. Case studies of successful companies like Interface, Patagonia, and Scandic Hotels are presented.

1. Leadership in Sustainability
1
LEADERSHIP IN
ENVIRONMENTAL
SUSTAINABILITY:
Creating Thriving Businesses that
Deliver Maximum Value

2. 2
PROBLEM
Business as Usual
Consumption
• In the past three decades, 1/3 of the planet’s natural resources base have
been consumed.
• The U.S. has 5% of the world’s population but consumes 30% of the world’s
resources and creates 30% of the world’s waste.
• If everybody consumed at U.S. rates, we would need 3 to 5 planets.
• We throw away 16% more per capita than Canadians; 26% more than Brits;
and 46% more than residents of Japan.
• Each person in the United States makes 4 1/2 pounds of garbage a day. That
is twice what we each made 30 years ago. – San Diego over 7 pounds per
person per day.
• For every one garbage can of material waste you put out on the curb, those
materials required 70 garbage cans of waste to create.
• 84 percent of the typical waste coming out of a U.S. Household is recyclable.
Leadership in Sustainability

3. Leadership in Sustainability
3
PROBLEM
Business as Usual
Natural Resource Depletion
• In the United States, there are less than 4% of the original forests left.
• 40% of waterways in the US have become undrinkable.
• 31 countries around the world today face chronic freshwater shortages
• As of 1992, studies found that that farmland in the U.S. is over 85%
micronutrient depleted.

4. Leadership in Sustainability
4
PROBLEM
Business as Usual
Social Relations and Health Deteriorating
• Each person has an average between 70 and 90 industrial chemicals and
pollutants flowing through their circulatory system
• USA is ranked 49th on life expectancy
• The U.S. national happiness peaked in the 1950s.
• According to one gross national happiness index, the USA is ranked 114th in
the world

5. Leadership in Sustainability
5
PROBLEM
Business as Usual
What
has
led
to
this?
• Government
agencies
crea/ng
policies
that
are
oriented
towards
fast
short-­‐term
growth
• Businesses
not
being
held
accountable
for
their
impacts
on
the
natural
environment
• The
Public
not
taking
responsibility
for
the
impacts
of
their
behavior

6. Leadership in Sustainability
6
SOLUTION
Solution to these problems?
Create a paradigm of
Sustainability
Sustainability
is
essen/al
to:
• The
Survival
of
humanity
and
biodiversity
which
are
inextricably
linked
• Crea/ng
healthy
and
func/onal
communi7es
• Maintaining
the
value
chain
of
products
and
services
that
create
value
for
communi/es

7. Leadership in Sustainability
7
SOLUTION
Requires
major
changes
in
• Government
• Business
• Consumer
behavior

8. Leadership in Sustainability
8
SOLUTION
Environmental
sustainability
is
a
process
of
preserving
natural
resources
and
ecosystems.
It
is
an
approach
that
systema/cally
takes
into
account
the
rela/onships
of
living
beings
and
is
oriented
towards
sustaining
life
and
value.

9. Leadership in Sustainability
9
PRINCIPLES
The
objec/ve
of
sustainability
for
businesses
is
simple:
“Create Value that Lasts for All
Stakeholders”

10. Leadership in Sustainability
10
PRINCIPLES
A company can be sustained by taking into account 7 forms of value:
• NATURAL CAPITAL – The value that is offered by the services and resources of
the natural environment.
• HUMAN CAPITAL – The value of employees’ and customers’ knowledge,
experience, motivation, and wellbeing.
• SOCIAL CAPITAL – The creative synergy of human interaction that can lead to
innovation.
• CULTURAL CAPITAL – The non-material value added by human diversity, the
arts, and belief systems.
• NETWORK CAPITAL – The opportunities offered through global communication,
technology, and markets.
• MATERIAL CAPITAL – The physical assets such as manufactured goods and
infrastructure.
• FINANCIAL CAPITAL – The investments and money that represent a tradable
value.

11. Leadership in Sustainability
11
PRINCIPLES
Strategically integrate
sustainability into your
company’s
- Leadership
- Business Strategy
- Organizational
Culture
Integrating sustainability into the company
maximizes stakeholder value
and creates a competitive advantage

12. Leadership in Sustainability
12
LEADERSHIP
“Clock
building”
NOT
“Time
telling”
–
Jim
Collins
Time-­‐tellers
Focus
is
on
the
leader
Leader
can
be
authoritarian,
charisma/c
Clock-­‐builders
Focus
is
on
the
company
Build
a
company
that
can
prosper
far
beyond
the
presence
of
any
single
leader
and
through
mul/ple
product
cycles
à
Focus
a
lot
on
organiza/onal
design
Capability
to
con/nually
change
and
evolve
beyond
exis/ng
product
life-­‐cycles
Listen
Communicate
Inspire
Stay
Flexible

13. Leadership in Sustainability
13
LEADERSHIP
If
you
want
to
build
a
ship,
don't
drum
up
the
people
to
collect
wood
and
don't
assign
them
tasks
and
work,
but
rather
teach
them
to
long
for
the
endless
immensity
of
the
sea
Antoine
de
Saint-­‐Exupery

14. Leadership in Sustainability
14
STRATEGY
•
Vision
for
your
company
•
Core
competencies
•
Product
and
Service
Differen/ators
•
Defining
your
industry
•
Planned
Ini/a/ves
in
opera/ons
•
Financial
Planning

15. Leadership in Sustainability
15
CULTURE
Culture
consists
of:
•
Behavioral
Norms
and
prac/ces
•
Values
•
Communica/on
paSerns
•
Decision
making
structure
•
Socializa/on
and
interac/on
• Training
and
Encultura/on
Process
Can
Influence:
•
Capacity
for
change
and
Innova/on
•
Feedback
channels
•
Development
of
Product
and
services

16. Leadership in Sustainability
16
COMPETITIVE ADVANTAGES
Environmental Sustainability à Competitive Advantage à Profitability
Cost Savings
Waste
Energy efficiency
Design efficiency
Operational efficiency
Enhanced Brand
Higher value through Social
responsibility, community-oriented brand,
Innovation
Capacity for innovation
Reduced Risk Exposure
Increased Market Share
Stakeholder Satisfaction and Loyalty
Customers, employees, suppliers, city
governments, local community, regulatory
agencies
Product and Service Differentiation
Greater Employee Performance
High employee satisfaction, retention of
top talent,

17. Leadership in Sustainability
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INDUSTRY
Real Estate
- Buildings are the 2nd largest GHG emitter, 25% of emissions in California
- By 2020, all residential homes will need to have net-zero emissions
- By 2030, all commercial will need to be net-zero emissions
- value
walkable
neighborhoods
-­‐-­‐
to
the
tune
of
$4,000
to
$34,000.
That's
how
much
more
people
paid
for
houses
within
neighborhoods
with
high
Walk
Scores
than
they
did
for
comparable
homes
in
less
walkable
neighborhoods.
Health Services
- Educating clients on sustainability offers healthier lifestyle choices and
community development relevant to issues of food, water, pollution, exposure,
toxic chemicals,
Finance
- Helping clients understand how sustainability benefits them and why its in
their interest to invest in more sustainable companies à consumer demand
for green product rising
- Financial
ins/tu/ons,
such
as
JP
Morgan
Chase,
Ci/group,
Bank
of
America,
and
Goldman
Sachs
are
all
modifying
their
lending
policies
to
reflect
environmental
considera/ons.
Examples of Sustainability In Different Industries

18. Leadership in Sustainability
18
ENVIRONMENTAL SUSTAINABILITY
Environmental Sustainability in the Company
Operations
q Facility design
q Energy
q Waste
q Transportation
Sustainable Solutions
ü Sustainable materials and efficiency in design (LEED)
ü Renewable energy
ü Reduce and eliminate waste
ü Alternative forms of fuel

19. Leadership in Sustainability
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ENVIRONMENTAL SUSTAINABILITY
Environmental Sustainability in the Company
Products and Services
q Product and service design and development
q Supply chain and sourcing
q Delivery
q Retailers
Sustainable Solutions
ü Servicizing, biomimicry, end-use planning, dematerialization
ü Working with suppliers to adopt an environmental sustainability strategy
ü Life cycle assessment, local sourcing
ü Educating retailers on sustainability initatives, incentivizing community
support

20. Leadership in Sustainability
20
ENVIRONMENTAL SUSTAINABILITY
Environmental Sustainability in the Company
Stakeholders
q Customers
q Employees
q Community
q Governing bodies
Sustainable Solutions
ü Marketing to advocate sustainability
ü Internal training
ü Community projects
ü Working with governments to create a sustainable future

21. Leadership in Sustainability
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BEST PRACTICES
CASE STUDY
Interface
Carpet manufacturer
Sustainability strategy led to a cut in greenhouse gasses
by 82 percent, fossil fuel consumption by 60 percent,
waste by 66 percent, water use by 75 percent. Over that
same period of time those reductions were achieved,
sales increased 60 percent and profits doubled.

22. Leadership in Sustainability
22
BEST PRACTICES
CASE STUDY
Patagonia
Outdoor recreational equipment retailer
The company’s sustainability initiatives include:
• All organic cotton and recycled clothing
• Revolutionary transparency of sourcing and supply
chain
• Creation of non-profit environmental organization
• LEED certified buildings utilizing solar power

23. Leadership in Sustainability
23
BEST PRACTICES
CASE STUDY
Scandic Hotels
Nordic Hotel Chain
The company drastically reduced energy and water
consumption per guest night (17% and 14% respectively
from 1996 to 2006). CO2 emissions were cut by 30%
and Scandic has the ambitious targets of reducing CO2
emissions by an additional 50% by 2011 and eliminating
fossil fuel emissions altogether by 2025. The
sustainability program led to a stronger corporate
culture, improved operational efficiency and saved the
company 18 million Euros.