The document discusses the growing business case for sustainability and green business. It provides examples of companies that have incorporated sustainability into their strategies and have experienced financial benefits as a result. It also outlines frameworks like the Natural Step that companies can use to define and achieve sustainability goals.

1. Green Business Rising Andrea Dean www.andreadean.com

6. “ Most Likely to Champion the Underdog”

9. Green MBA’s Source: Net Impact, 2008 Business as UnUsual Guide

10. Source: Beyond Grey Pinstripes 2007-2008 The Aspen Institute

11. "The theme of environmental consciousness is the DNA of this campus and goes back 50 years. Sustainability is not an add-on but is integrated throughout our curriculum” Dean Robert Sullivan Rady School of Management at the University of California at San Diego

12. Green Business Sustainable Business Triple Bottom Line Sustainability Corporate Social Responsibility Terminology

13. What is Sustainability? "Humanity has the ability to make development sustainable--to ensure that it meets the needs of the present without compromising the ability of future generations to meet their own needs." Brundtland Commission Report “ Sustainability consists of harmonizing the ecological, social, and economic aspects of human activity in such a way that economic growth is consistent with long-term ecological activity.” Brian and Mary Nattrass, Consultants and Authors of The Natural Step for Business

14. Defining Green Business Green businesses operate in ways that solve, rather than cause, both environmental and social problems. These businesses adopt principles, policies, and practices that improve the quality of life for their customers, their employees, communities, and the environment. Source: www.coopamerica.org

15. The Natural Step A shared science- and systems-based definition for sustainability A decision-making framework and process to help organizations and communities plan for sustainability A compass to help us know if we’re moving in the right direction

16. Communicating the BUSINESS CA$E for Sustainability Bob Willard bobwillard@sympatico.ca www.sustainabilityadvantage.com

17. Why Green Business? Bob Willard on The Business Case for Sustainability

18. Sustainability 3-Legged Stool Sustainability Economic Leg Good Jobs Fair wages Security Infrastructure Fair Trade Social Leg Working conditions Health services Education services Community & Culture Social justice Environmental Leg 0 Pollution & Waste Renewable Energy Conservation Restoration Quality of Life / Genuine Wealth / Genuine Progress Source: Bob Willard- The Business Case for Sustainability

19. Smart Business 3-Legged Stool Asset Management Financial Capital Built Capital Natural Capital Human Capital Social Capital Sustainable Value Creation Source: Bob Willard Source: Bob Willard- The Business Case for Sustainability

20. Company Value “Iceberg” Balance Sheet Market Capitalization Source: Bob Willard- The Business Case for Sustainability

21. Company Value “Iceberg” Intangibles - Nonfinancials Reputation - Brand Image Stakeholder Relationships Tangibles Financials Market Capitalization Balance Sheet Source: Bob Willard- The Business Case for Sustainability

22. Company Value “Iceberg”: 1981 Intangibles / Nonfinancials / Reputation Tangibles Financials Market Capitalization Balance Sheet 83% 17% Arthur D. Little, The Business Case for Corporate Citizenship , 2002 Source: Bob Willard- The Business Case for Sustainability

23. Company Value “Iceberg”: 1998 Intangibles Nonfinancials Reputation Tangibles Financials 29% 71% Arthur D. Little, The Business Case for Corporate Citizenship , 2002 Source: Bob Willard- The Business Case for Sustainability

24. Sea of Demanding Stakeholders Nonfinancials / Reputation Financials Employees Customers Media Economists Scientists NGOs Competitors Global Markets Governments Insurers The Public Investors Banks Source: Bob Willard- The Business Case for Sustainability

25. Two-Part Business Case Nonfinancials / Reputation Financials Employees Customers Media Economists Scientists NGOs Competitors Global Markets Governments Insurers The Public Investors Banks RISKS OPPORTUNITIES Source: Bob Willard- The Business Case for Sustainability

26. Mega-Issue Storm Clouds Employees Customers Media Economists Scientists NGOs Competitors Global Markets Governments Insurers The Public Investors Banks RISKS Water Crisis Pandemics Erosion of Trust Pollution & Health Nonfinancials / Reputation Wealth Chasm Food Crisis Climate Crisis Energy Crisis Source: Bob Willard- The Business Case for Sustainability

27. 7 Benefit Areas 1. Reduced recruiting costs 2. Reduced attrition costs 3. Increased employee productivity 4. Reduced expenses in manufacturing 5. Reduced expenses at commercial sites 6. Increased revenue - market share 7. Lower insurance & borrowing costs … yielding a profit increase of +38% Usual focus REPUTATION Source: Bob Willard- The Business Case for Sustainability

28. One More Goal … or an Enabling Strategy? Innovation Speed to market New markets Talent wars Productivity Motivation Brand image Managing risks Compliance Supply security Profit Share price Growth Revenue Customer care Expense savings Competition Market share Leadership Governance Source: Bob Willard- The Business Case for Sustainability

29. The Natural Step Framework Source: The Natural Step & Alex Frost, Hawaii County Resource Center

30. The Natural Step Does your organization have a definition of sustainability? What is, with reference to this definition, your gap to sustainability? What are you doing, at the strategic level of the organization, to bridge that gap? Source: The Natural Step

31. Natural Step- Key Concepts Source: The Natural Step & Alex Frost, Hawaii County Resource Center

32. The Funnel Source: The Natural Step & Alex Frost, Hawaii County Resource Center

33. Four System Conditions Source: The Natural Step & Alex Frost, Hawaii County Resource Center

34. Backcasting Source: The Natural Step & Alex Frost, Hawaii County Resource Center

35. A-B-C-D + E Source: The Natural Step & Alex Frost, Hawaii County Resource Center

36. B- Baseline Analysis Choose a Focus Area. Group Exercise Baseline Analysis Worksheet

37. Interface Stonyfield Farm Patagonia

41. Mystery Environmentalist… MYSTERY COMPANY’S environmental goals are simple and straightforward: to be supplied 100 percent by renewable energy; to create zero waste; and to sell products that sustain our natural resources and the environment.

43. Today’s Environmentalists Microsoft Whole Foods Kellogg’s McDonalds Home Depot Disney UPS Coca-Cola Starbucks PepsiCo. Source: Strategies for a Green Economy, Joel Makower

44. What About the Economy? In 16 of the 18 industries studied, companies committed to sustainability outperformed industry averages by 15% over the six months from May through November 2008. From a market capitalization perspective, this superior performance averages out to $650 million in protected market capitalization per company. Source: A.T. Kearney, Inc, Green Winners: The Performance of Sustainability-focused Companies in the Financial Crisis

45. What About the Economy? “ Our study indicates that the market rewards specific companies,” said Dr. Daniel Mahler, author of the study. “We find common characteristics among the leading companies that show that sustainability goes far beyond the narrow definition of being environmentally friendly.” These characteristics include: A focus on long-term strategy, not just short-term gains Strong corporate governance Sound risk-management practices A history of investment in green innovation Source: A.T. Kearney, Inc, Green Winners: The Performance of Sustainability-focused Companies in the Financial Crisis

46. Results? Source: © Greener World Media, Inc (greenbiz.com) Bad News Greenhouse gas emissions are up Telecommuting is down E-Waste is up Good News Cleantech investments up Clean-Energy Patents up Energy Efficiency up

47. Results? Source: © Greener World Media, Inc (greenbiz.com) Good News Paper Use & Recycling Staying Afloat Green Jobs Packaging Intensity Toxic Emissions & Toxics in Manufacturing

48. Platform or Passion? “ One oft-quoted study of 1500 business school graduates over a twenty-year period shows that 1245 (83%) went right for the money (platform) and 255 (17%) went for their passion. After twenty years, there were 101 multi-millionaires. One took the "platform" track; the other 100 took the "passion" track.” Dr. Mark Albion, Co-Founder of Net Impact

50. Green Jobs According to Net Impact: The number of “sustainability” jobs posted on the two leading business jobs sites are growing at a rate of 37% per year. Who is pushing this growth? Disney, Nike and Starbucks. Source: GreenBiz.com, Jan 16, 2008, CSR Jobs Rank High for Newly Minted MBAs: Report

53. Talent Risks 40% of MBA grads rated CSR as a an “extremely” or “very” important company reputation measure when job hunting (Hill & Knowlton Jan 08) 92% of students and entry-level hires seek an environmentally friendly company (MonsterTRAK.com survey, Nov 07) 83% of employees in G7 countries say company’s positive CSR reputation increases their loyalty (GlobeScan 2006) 83% of employees in G7 countries say company’s positive CSR reputation increases their motivation (GlobeScan 2006) Source: Bob Willard- The Business Case for Sustainability

54. The Other Triple Bottom Line Passion Profession Profits

55. What Am I Doing? Individual & Team Coaching Green Business Coaching Group Webinars Blog / Podcast / Writing Business/Community Projects Sustainability Strategic Planning using The Natural Step

56. Stay in Touch greenhawaii.com kanuhawaii.org andreadean.com/blog

57. Coaching, Consulting & Training AndreaDean.com What are you taking away today?