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Marilyn	
  Waite	
  |	
  @WaiteMarilyn	
  |	
  www.marilynwaite.com	
  
Telecom	
  Paris	
  
3	
  July	
  2014	
  
	
  
*Cow	
  Photo	
  by	
  Olivier	
  French	
  
Contents	
  
The	
  business	
  case	
  for	
  sustainable	
  transformation	
   	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
1	
  Sustainability	
  
Defined	
  
	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
2	
  The	
  Business	
  
Journey	
  	
  	
  	
  	
  	
  	
   	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
SURF	
  
Framework	
  
	
  	
  	
  	
  	
  	
  	
  
 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
1	
  
What	
  is	
  sustainability?	
  Sustainable	
  Development?	
  
Early	
  
Civilizations	
  
•  The	
  Maya	
  
•  The	
  Anlo	
  
1713	
  
•  Sylvicultura	
  
Oeconomica	
  
(Hans	
  Carl	
  von	
  
Calowitz)	
  
1750	
  to	
  1850	
  	
  
•  Industrial	
  
Revolution	
  
1938	
  
•  Income	
  from	
  
Natural	
  
Resources	
  
without	
  
Destroying	
  
Capital	
  
1962	
  
•  Silent	
  Spring	
  
•  Environmental	
  
Movements	
  
1972	
  
•  Only	
  One	
  Earth	
  
1987	
  
•  UN	
  WCED	
  –
Our	
  Common	
  
Future	
  
1990s	
  
•  1992	
  Earth	
  
Summit	
  
•  70	
  definitions	
  
of	
  sustainable	
  
development	
  
“Sustainable development is development
that meets the needs of the present, without
compromising the ability of future generations
to meet their own needs.” -WCED, 1987
“A creatively ambiguous phrase…an intuitively attractive but slippery
concept.”	
  -­‐Mitchel,	
  1997	
  	
  
“An obligation to leave behind a
generalized capacity to create
well-being.” -Solow, 1993

“Meeting	
  the	
  needs	
  of	
  all	
  generations,	
  present	
  and	
  future,	
  while	
  
improving	
  their	
  well-­‐being	
  through	
  social,	
  economic,	
  
environmental,	
  and	
  intergenerational	
  efforts.”	
  –	
  Waite,	
  2014	
  
—  Sustainable:	
  an	
  adjective	
  
—  Sustainable	
  development:	
  a	
  path	
  
—  Sustainability:	
  an	
  end-­‐goal	
  
 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
2
What	
  is	
  the	
  biggest	
  sustainability	
  challenge	
  facing	
  business	
  today?	
  
“We define sustainable development as forms of progress that meet the
needs of the present without compromising the ability of future
generations to meet their needs.” (WBCSD)
“For the business enterprise, sustainable development
means adopting business strategies and activities that
meet the needs of the enterprise and its stakeholders
today while protecting, sustaining and enhancing the
human and natural resources that will be needed in the
future.” (IISD, 1992)
—  Why	
  go	
  sustainable?	
  
	
  
	
  
•  New	
  products	
  using	
  sustainability	
  
•  Innovation	
  driven	
  by	
  QBL	
  
•  Talent	
  gains	
  
•  Reduce	
  water,	
  energy,	
  waste	
  disposal	
  costs	
  
	
  
Risk	
  
	
  
	
  
Brand	
  +	
  Reputation	
  
	
  
	
  
•  On-­‐site,	
  Off	
  grid	
  Renewable	
  Energy	
  
•  Litigation	
  
•  Eliminate	
  need	
  for	
  Clean-­‐Up	
  
•  Compliance	
  Costs	
  
•  Loyalty	
  
•  Customer	
  concern	
  for	
  People	
  and	
  Planet	
  
•  More	
  attractive	
  contracts	
  with	
  suppliers	
  
and	
  governments	
  
	
  
P	
  =	
  R	
  –	
  C	
  
Executive MBA - Master Class. How to Transform Business for Sustainablity ?
—  The	
  CSO*	
  
*PwC	
  –	
  The	
  Sustainability	
  Executive,	
  September	
  2012,	
  Longsworth,	
  Doran,	
  Webber	
  
—  Concepts	
  
Cradle-­‐to-­‐Cradle	
  
Green	
  Economy	
  
Circular	
  Economy	
  
Blue	
  Economy	
  
Waste	
  =	
  Food	
  
Rebuild	
  Capital.	
  Financial.	
  
Manufactured.	
  Human.	
  
Social.	
  Natural.	
  
Improve	
  Well-­‐being.	
  
Reduce	
  Environmental	
  
Risks.	
  
Local	
  System	
  of	
  
Production	
  and	
  
Consumption.	
  	
  
Sustainability	
  Capital	
  
Human-­‐made.	
  Human	
  
knowledge	
  &	
  skills.	
  
Natural	
  capital.	
  Social	
  
capital.	
  
—  Standards	
  &	
  Guidelines	
  
Global	
  Compact	
  (UN)	
  
World	
  Business	
  Council	
  for	
  SD	
  Guidelines	
  
Human	
  rights;	
  Equal	
  Opportunities;	
  Freedom	
  of	
  
Association;	
  Compensation,	
  Opportunities	
  to	
  
Improve	
  Skills;	
  Workplace	
  Safety,	
  Health	
  &	
  
Environment;	
  Fair	
  Competition;	
  Civil	
  Engagement	
  
Set	
  Boundaries.	
  Measure	
  Direct	
  and	
  
Indirect	
  Impacts.	
  Assess	
  Contribution	
  
to	
  Development.	
  Prioritize	
  the	
  
Management	
  Response.	
  	
  
Sustainability	
  Reporting:	
  People.	
  
Planet.	
  Profit.	
  
Human	
  Rights,	
  Freedom	
  of	
  Association,	
  No	
  
Forced	
  Labor,	
  No	
  Child	
  Labor,	
  No	
  
Discrimination,	
  Precautionary	
  Approach,	
  
Environmental	
  Responsibility,	
  
Environmental	
  Technology,	
  No	
  Corruption	
  
Social	
  Responsibility	
  (no	
  certification).	
  
Environmental	
  management	
  systems.	
  ISO	
  26000,	
  ISO	
  14000	
  
Global	
  Reporting	
  Initiative	
  (Non-­‐Profit)	
  
Global	
  Sullivan	
  Principles	
  
—  Indices	
  
Dow	
  Jones	
  Sustainability	
  Index	
  
FTSE4Good	
  
Genuine	
  Progress	
  Indicator	
  
Social	
  Progress	
  Index	
  
Tracking	
  stock	
  performance:	
  
Economic,	
  Environmental	
  
and	
  Social	
  Criteria.	
  
CSR	
  standards:	
  Environment,	
  
Human	
  Rights,	
  Supply	
  Chain	
  
Labor,	
  Anti-­‐bribery,	
  Climate	
  
Change.	
  	
  
Replacing	
  GDP:	
  
+	
  Volunteer	
  Work.	
  Non-­‐paid	
  household	
  
work.	
  Services	
  of	
  Consumer	
  Durables.	
  
Services	
  of	
  Highways.	
  Net	
  capital	
  investment.	
  
-­‐	
  Crime.	
  Family	
  breakdown.	
  Automobile	
  
accidents.	
  Loss	
  of	
  leisure	
  time.	
  
Underemployment.	
  Pollution.	
  Resource	
  
Depletion.	
  
Basic	
  Human	
  Needs.	
  
Foundations	
  of	
  Wellbeing.	
  
Opportunity.	
  
—  Specific	
  Tools	
  &	
  Methods	
  
Backcasting	
  
Carbon	
  Footprinting	
  
Ec0logical	
  Footprinting	
  
Water	
  Footprinting	
  
Life	
  Cycle	
  Analysis	
  
Outcome	
  first.	
  
Total	
  Greenhouse	
  Gases	
  Emitted	
  
per	
  unit	
  of	
  time.	
  
Total	
  Volume	
  of	
  Freshwater	
  used	
  
for	
  goods	
  and	
  services.	
  Water	
  
Consumed	
  and/or	
  Polluted	
  per	
  
unit	
  of	
  time.	
  
Inventory	
  of	
  Relevant	
  Energy,	
  
Material	
  Inputs,	
  Environmental	
  
Releases.	
  Evaluation	
  of	
  Impacts.	
  
Land	
  area	
  and	
  water	
  required	
  for	
  
consumption	
  and	
  waste	
  using	
  
prevailing	
  technology.	
  
 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
3	
  
“There	
  are	
  too	
  many	
  metrics	
  and	
  they’re	
  too	
  confusing.”	
  
Executive MBA - Master Class. How to Transform Business for Sustainablity ?
(1)	
  Raw	
  
Material	
  
(Bamboo)	
  
(2)	
  
Bamboo	
  
Fiber	
  
(3)	
  
Bamboo	
  
Yarn	
  
(4)	
  
Bamboo	
  
Cloth	
  
(5)	
  
Bamboo	
  
T-­‐Shirt	
  
!
! ! ! ! !
How do the products in the supply chain measure when
it comes to:
•  Greenhouse	
  Gas	
  Emissions	
  
•  Water	
  Use	
  (Efficiency,	
  Recycled,	
  Rainwater)	
  
•  Energy	
  Use	
  (Efficiency,	
  Low	
  Carbon,	
  Renewable)	
  
•  Land	
  Use	
  (Ecological	
  Footprint,	
  Soil	
  Quality)	
  
•  Transportation	
  (Distance,	
  Pollutants,	
  Renewable)	
  
•  Materials	
  (Biodegradable,	
  Recycled,	
  Sustainably	
  Harvested)	
  
•  Waste	
  (Composting,	
  Cradle-­‐to-­‐Cradle,	
  Re/Up-­‐Cycling)	
  
•  Pollution	
  (Air,	
  Land,	
  Water)	
  
•  Labor	
  (working	
  conditions,	
  fair	
  wages)	
  
•  Long-­‐term	
  Profit	
  
	
  
*Non-­‐exhaustive	
  list	
  
 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  Follow	
  the	
  Frog	
  Rainforest	
  Alliance	
  Example	
  
What does the user do with the product or service?
•  Throw-­‐away	
  	
  
•  Reduce/Efficiently	
  use	
  
•  Reuse	
  
•  Recycle	
  
•  Biodegrade/Compost	
  (and	
  systems	
  in	
  place	
  to	
  help)	
  
User	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
(for	
  bamboo	
  
textile	
  t-­‐shirt)	
  
	
  
Energy	
  (washing,	
  
drying)	
  
Water	
  (washing)	
  
Chemicals	
  
(bleaching,	
  stain	
  
removing)	
  
Pollutants	
  
Associated	
  with	
  
Use	
  (GHG	
  
emissions,	
  
effluents)	
  
Durability	
  (one	
  
year?	
  lifetime?)	
  
End-­‐of-­‐Life	
  
(system	
  to	
  
upcycle,	
  system	
  
to	
  biodegrade	
  
effectively)	
  
Relations	
  
(stakeholders)	
  
	
  
Workers	
  (every	
  
step	
  of	
  value	
  chain)	
  
Civil	
  Society	
  (non-­‐
profit	
  institutions,	
  
NGOs)	
  
Government	
  (local,	
  
regional,	
  national,	
  
international)	
  
Communities	
  
surrounding	
  
operations	
  
Independent	
  Third	
  
Parties	
  
Clients	
  (internal,	
  
external)	
  
Society	
  
(People)	
  
Economy	
  
(Profit)	
  
Environment	
  
(Planet)	
  
Four	
  Pillars	
  of	
  
Sustainable	
  
Development	
  
Society	
  
	
  	
  	
  	
  
Environment	
  
Economy	
  
Future	
  
Generations	
  	
  	
  
Executive MBA - Master Class. How to Transform Business for Sustainablity ?
 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
Marilyn	
  Waite	
  |	
  @WaiteMarilyn	
  |	
  www.marilynwaite.com	
  
info@marilynwaite.com	
  |	
  Quadruple	
  App	
  on	
  Apple	
  and	
  Android	
  
 	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  	
  
Executive MBA - Master Class. How to Transform Business for Sustainablity ?

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Executive MBA - Master Class. How to Transform Business for Sustainablity ?

  • 1.                         Marilyn  Waite  |  @WaiteMarilyn  |  www.marilynwaite.com   Telecom  Paris   3  July  2014    
  • 2. *Cow  Photo  by  Olivier  French  
  • 3. Contents   The  business  case  for  sustainable  transformation                                                       1  Sustainability   Defined                               2  The  Business   Journey                                           SURF   Framework                
  • 4.                         1   What  is  sustainability?  Sustainable  Development?  
  • 5. Early   Civilizations   •  The  Maya   •  The  Anlo   1713   •  Sylvicultura   Oeconomica   (Hans  Carl  von   Calowitz)   1750  to  1850     •  Industrial   Revolution   1938   •  Income  from   Natural   Resources   without   Destroying   Capital  
  • 6. 1962   •  Silent  Spring   •  Environmental   Movements   1972   •  Only  One  Earth   1987   •  UN  WCED  – Our  Common   Future   1990s   •  1992  Earth   Summit   •  70  definitions   of  sustainable   development  
  • 7. “Sustainable development is development that meets the needs of the present, without compromising the ability of future generations to meet their own needs.” -WCED, 1987 “A creatively ambiguous phrase…an intuitively attractive but slippery concept.”  -­‐Mitchel,  1997     “An obligation to leave behind a generalized capacity to create well-being.” -Solow, 1993 “Meeting  the  needs  of  all  generations,  present  and  future,  while   improving  their  well-­‐being  through  social,  economic,   environmental,  and  intergenerational  efforts.”  –  Waite,  2014  
  • 8. —  Sustainable:  an  adjective   —  Sustainable  development:  a  path   —  Sustainability:  an  end-­‐goal  
  • 9.                         2 What  is  the  biggest  sustainability  challenge  facing  business  today?  
  • 10. “We define sustainable development as forms of progress that meet the needs of the present without compromising the ability of future generations to meet their needs.” (WBCSD) “For the business enterprise, sustainable development means adopting business strategies and activities that meet the needs of the enterprise and its stakeholders today while protecting, sustaining and enhancing the human and natural resources that will be needed in the future.” (IISD, 1992)
  • 11. —  Why  go  sustainable?       •  New  products  using  sustainability   •  Innovation  driven  by  QBL   •  Talent  gains   •  Reduce  water,  energy,  waste  disposal  costs     Risk       Brand  +  Reputation       •  On-­‐site,  Off  grid  Renewable  Energy   •  Litigation   •  Eliminate  need  for  Clean-­‐Up   •  Compliance  Costs   •  Loyalty   •  Customer  concern  for  People  and  Planet   •  More  attractive  contracts  with  suppliers   and  governments     P  =  R  –  C  
  • 13. —  The  CSO*   *PwC  –  The  Sustainability  Executive,  September  2012,  Longsworth,  Doran,  Webber  
  • 14. —  Concepts   Cradle-­‐to-­‐Cradle   Green  Economy   Circular  Economy   Blue  Economy   Waste  =  Food   Rebuild  Capital.  Financial.   Manufactured.  Human.   Social.  Natural.   Improve  Well-­‐being.   Reduce  Environmental   Risks.   Local  System  of   Production  and   Consumption.     Sustainability  Capital   Human-­‐made.  Human   knowledge  &  skills.   Natural  capital.  Social   capital.  
  • 15. —  Standards  &  Guidelines   Global  Compact  (UN)   World  Business  Council  for  SD  Guidelines   Human  rights;  Equal  Opportunities;  Freedom  of   Association;  Compensation,  Opportunities  to   Improve  Skills;  Workplace  Safety,  Health  &   Environment;  Fair  Competition;  Civil  Engagement   Set  Boundaries.  Measure  Direct  and   Indirect  Impacts.  Assess  Contribution   to  Development.  Prioritize  the   Management  Response.     Sustainability  Reporting:  People.   Planet.  Profit.   Human  Rights,  Freedom  of  Association,  No   Forced  Labor,  No  Child  Labor,  No   Discrimination,  Precautionary  Approach,   Environmental  Responsibility,   Environmental  Technology,  No  Corruption   Social  Responsibility  (no  certification).   Environmental  management  systems.  ISO  26000,  ISO  14000   Global  Reporting  Initiative  (Non-­‐Profit)   Global  Sullivan  Principles  
  • 16. —  Indices   Dow  Jones  Sustainability  Index   FTSE4Good   Genuine  Progress  Indicator   Social  Progress  Index   Tracking  stock  performance:   Economic,  Environmental   and  Social  Criteria.   CSR  standards:  Environment,   Human  Rights,  Supply  Chain   Labor,  Anti-­‐bribery,  Climate   Change.     Replacing  GDP:   +  Volunteer  Work.  Non-­‐paid  household   work.  Services  of  Consumer  Durables.   Services  of  Highways.  Net  capital  investment.   -­‐  Crime.  Family  breakdown.  Automobile   accidents.  Loss  of  leisure  time.   Underemployment.  Pollution.  Resource   Depletion.   Basic  Human  Needs.   Foundations  of  Wellbeing.   Opportunity.  
  • 17. —  Specific  Tools  &  Methods   Backcasting   Carbon  Footprinting   Ec0logical  Footprinting   Water  Footprinting   Life  Cycle  Analysis   Outcome  first.   Total  Greenhouse  Gases  Emitted   per  unit  of  time.   Total  Volume  of  Freshwater  used   for  goods  and  services.  Water   Consumed  and/or  Polluted  per   unit  of  time.   Inventory  of  Relevant  Energy,   Material  Inputs,  Environmental   Releases.  Evaluation  of  Impacts.   Land  area  and  water  required  for   consumption  and  waste  using   prevailing  technology.  
  • 18.                         3   “There  are  too  many  metrics  and  they’re  too  confusing.”  
  • 20. (1)  Raw   Material   (Bamboo)   (2)   Bamboo   Fiber   (3)   Bamboo   Yarn   (4)   Bamboo   Cloth   (5)   Bamboo   T-­‐Shirt   ! ! ! ! ! !
  • 21. How do the products in the supply chain measure when it comes to: •  Greenhouse  Gas  Emissions   •  Water  Use  (Efficiency,  Recycled,  Rainwater)   •  Energy  Use  (Efficiency,  Low  Carbon,  Renewable)   •  Land  Use  (Ecological  Footprint,  Soil  Quality)   •  Transportation  (Distance,  Pollutants,  Renewable)   •  Materials  (Biodegradable,  Recycled,  Sustainably  Harvested)   •  Waste  (Composting,  Cradle-­‐to-­‐Cradle,  Re/Up-­‐Cycling)   •  Pollution  (Air,  Land,  Water)   •  Labor  (working  conditions,  fair  wages)   •  Long-­‐term  Profit     *Non-­‐exhaustive  list  
  • 22.                        Follow  the  Frog  Rainforest  Alliance  Example  
  • 23. What does the user do with the product or service? •  Throw-­‐away     •  Reduce/Efficiently  use   •  Reuse   •  Recycle   •  Biodegrade/Compost  (and  systems  in  place  to  help)  
  • 24. User                               (for  bamboo   textile  t-­‐shirt)     Energy  (washing,   drying)   Water  (washing)   Chemicals   (bleaching,  stain   removing)   Pollutants   Associated  with   Use  (GHG   emissions,   effluents)   Durability  (one   year?  lifetime?)   End-­‐of-­‐Life   (system  to   upcycle,  system   to  biodegrade   effectively)  
  • 25. Relations   (stakeholders)     Workers  (every   step  of  value  chain)   Civil  Society  (non-­‐ profit  institutions,   NGOs)   Government  (local,   regional,  national,   international)   Communities   surrounding   operations   Independent  Third   Parties   Clients  (internal,   external)  
  • 26. Society   (People)   Economy   (Profit)   Environment   (Planet)   Four  Pillars  of   Sustainable   Development   Society           Environment   Economy   Future   Generations      
  • 28.                         Marilyn  Waite  |  @WaiteMarilyn  |  www.marilynwaite.com   info@marilynwaite.com  |  Quadruple  App  on  Apple  and  Android  
  • 29.