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A Hands-On Guide to Three New Tools Powered by the Sustainability ROI Workbook - Bob Willard

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The free, open-source Sustainability ROI Workbook is a connect-the-dots justification engine. This session will show how three variations of it are used to power three new, free, open-source tools for sustainability champions:

1) A 21st century CAPEX Request tool to help gain CFO approval for a sustainability project.

2) A 21st century Integrated Report tool that helps show how enhancing the value of natural, human and social capitals added value to the company’s financial, intellectual, and manufactured capitals, over the reporting period.

3) A 21st century Sustainable Procurement tool that uses the total cost of ownership (TCO) to help justify paying a premium for more-sustainable products from more-sustainable suppliers.

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A Hands-On Guide to Three New Tools Powered by the Sustainability ROI Workbook - Bob Willard

  1. 1. A Hands-On Guide to Three New Tools Powered by the Sustainability ROI Workbook Bob Willard Author and Speaker SUSTAINABILITY ADVANTAGE @bob_willard
  2. 2. bobwillard@sustainabilityadvantage.com A Hands-On Guide to 
 Three New Toolkits, powered by the 
 Sustainability ROI Workbook
  3. 3. 21st CENTURY / INTEGRATED MINDSET Deci$ion-Maker$
  4. 4. Capture 
 new opportunities Environmental and societal impacts Mitigate 
 new risks DECISION-MAKING CRITERIA
 21st Century ENHANCED REPUTATION INNOVATION
  5. 5. 21st Century 
 CAPEX 
 Toolkit 21st Century 
 Reporting 
 Toolkit 21st Century 
 Procurement 
 Toolkit
  6. 6. FREE! OPEN-SOURCE! sustainabilityadvantage.com/books-dvds/roi-workbook/
  7. 7. 21st Century 
 CAPEX 
 Toolkit 21st Century 
 Reporting 
 Toolkit 21st Century 
 Procurement 
 Toolkit
  8. 8. “Our financial models may have brought us success in the past and we should not abandon them now, but we should think about how 
 new information can better inform our capital investment decisions.” INTEGRATE ESG FACTORS INTO 
 CAPEX DECISIONS “CAPEX: A practical guide for embedding sustainability into capital investment appraisal,” 
 Accounting for Sustainability (A4S) CFO Leadership Network, April 2016.
  9. 9. 21st Century CAPEX Request Form Project Details and Requesters + Board committee support Project Description and Justification + Purpose fulfillment
 + Improved environmental impacts + Improved social and employee impacts 20th Century CAPEX Request Form Project Details and Requesters Project Description and Justification Expense and Revenue Impacts Capital Required (CAPEX) and Sources Financial Analysis / ROI Payback Period, IRR, NPV … Authorizations + : Information added to traditional content CFOs’ advice to CFOs 21st Century CAPEX Request Form Project Details and Requesters + Board committee support Project Description and Justification + Purpose fulfillment
 + Improved environmental impacts + Improved social and employee impacts Expense and Revenue Impacts + Indirect benefits from monetized intangibles Capital Required (CAPEX) and Sources + New sources of capital Financial Analysis / ROI Payback Period, IRR, NPV … + Impact on Assets + Enhanced asset values and market value 21st Century CAPEX Request Form Project Details and Requesters + Board committee support Project Description and Justification + Purpose fulfillment
 + Improved environmental impacts + Improved social and employee impacts Expense and Revenue Impacts + Indirect benefits from monetized intangibles Capital Required (CAPEX) and Sources + New sources of capital Financial Analysis / ROI Payback Period, IRR, NPV … + Impact on Assets + Enhanced asset values and market value + Risks + Contingency risks of doing the project + Monetized risks of not doing the project Authorizations + Board committee authorization 21st CENTURY CAPEX REQUEST FORM Quantification/monetizationoftheadditionalinformation
  10. 10. % Weight 21st Century CAPEX Request Form Criteria Score 
 (1-5) Weighted Score Project Details and Requesters + Board committee support Project Description and Justification (% Weight) + Purpose fulfillment
 + Improved environmental impacts + Improved social and employee impacts (Score) Weighted score Expense and Revenue Impacts (% Weight) + Indirect benefits from monetized intangibles (Score) Weighted score Capital Required (CAPEX) and Sources (% Weight) + New sources of capital (Score) Weighted score Financial Analysis / ROI (% Weight) Payback Period, IRR, NPV … (Score) Weighted score + Impact on Assets (% Weight) + Enhanced asset values and market value (Score) Weighted score + Risks (% Weight) + Contingency risks of doing the project + Monetized risks of not doing the project (Score) Weighted score 100% Total Projects with the highest total weighted scores are approved 21st CENTURY CAPEX APPRAISAL TOOL
  11. 11. 21st Century 
 CAPEX 
 Toolkit 21st Century 
 Reporting 
 Toolkit 21st Century 
 Procurement 
 Toolkit
  12. 12. Recommendations from respected sustainable procurement experts / bodies 20th Century RFP Specifications Product performance and quality Product cost Product delivery Product warranty and after-sales support Supplier governance and operations Supplier track record and outlook (Other …?) 21st Century RFP Specifications Product performance and quality + Product sustainability-related performance and content features1 + Product features alignment with company Purpose / Mission / Vision Product cost + One-time cost reduction possibilities for sustainable products
 + Total cost of ownership (TCO), including indirect benefits Product delivery + Carbon footprint of delivery Product warranty and after-sales support Supplier governance and operations + Supplier sustainable governance and operations characteristics2 Supplier track record and outlook (Other…?) ProductCriteria + : Sustainability-related specifications added to traditional specs 1 : Selected from a superset of possible Product Sustainability Criteria 2 : Selected from a superset of possible Supplier Sustainability Criteria SupplierCriteria ProductCriteriaSupplierCriteria 21st Century Procurement Toolkit
  13. 13. % Weight 21st Century Decision-Making Criteria Score
 (1-5) Weighted Score Product performance and quality (% Weight)
 (% Weight) (% Weight) Traditional product performance and quality factors + Product sustainability-related performance and content features1 + Product features alignment with company Purpose / Mission / Vision (Score) (Score) (Score) Weighted score
 Weighted score Weighted score Product cost (% Weight)
 (% Weight) (% Weight) Traditional one-time product cost factors + One-time cost reduction possibilities
 + Total cost of ownership (TCO) (Score) (Score) (Score) Weighted score Weighted score Weighted score Product delivery (% Weight) (% Weight) Traditional product delivery factors + Carbon footprint of delivery (Score) (Score) Weighted score Weighted score Product warranty and after-sales support (% Weight) Traditional product warranty and after-sales support factors (Score) Weighted score Supplier governance and operations (% Weight) (% Weight) Traditional supplier governance and operations characteristics + Supplier sustainability governance and operations characteristics2 (Score) (Score) Weighted score Weighted score Supplier track record and outlook (% Weight) Traditional supplier track record and outlook factors (Score) Weighted score 100% “Best available” products, with the highest total weighted scores, are purchased Total ProductCriteriaSupplierCriteria + : Sustainability-related specifications added to traditional specs 1 : Selected from a superset of possible Product Sustainability Criteria 2 : Selected from a superset of possible Supplier Sustainability Criteria 21st Century Bid Evaluation Tool
  14. 14. 21st Century 
 CAPEX 
 Toolkit 21st Century 
 Reporting 
 Toolkit 21st Century 
 Procurement 
 Toolkit
  15. 15. <IR> SIX CAPITALS “The International <IR> Framework,” International Integrated Reporting Council (IIRC), December 2013. Indicators? Metrics? Indicators? Metrics?
  16. 16. Environmental Goals Social and Economic Goals www.un.org/sustainabledevelopment/sustainable-development-goals SUSTAINABLE DEVELOPMENT GOALS (SDGs) Indicators? Metrics? Indicators? Metrics?
  17. 17. futurefitbusiness.org FUTURE-FIT BUSINESS BENCHMARK(FFBB) Science-based aspirational goals for a truly sustainable company
  18. 18. 8 CONTENT ELEMENTS OF AN <IR> ❖ Purpose and Stakeholders ❖ Governance ❖ Business Model ❖ Risks and Opportunities ❖ Strategy and Resources ❖ Performance ❖ Outlook ❖ Basis of Preparation “The International <IR> Framework,” International Integrated Reporting Council (IIRC), December 2013.
  19. 19. sustainabilityadvantage.com/books-dvds/roi-workbook/ FREE! OPEN-SOURCE!
  20. 20. How to 
 lead change Science-based goals for
 future-fit businesses RESOURCES Highlights of latest reports 
 Backup examples 
 Book summaries
 Learning decks sustainabilityadvantage.com 21st century decision-making and reporting toolkits Built-in detailed instructions + help videos LinkedIn “Sustainability ROI Workbook” group FREE! OPEN-SOURCE! How to talk
 to boards
  21. 21. CALL TO ACTION “Unless someone like you cares a whole awful lot, nothing is going to get better. It's not.” The Lorax / Dr. Seuss
  22. 22. bobwillard@sustainabilityadvantage.com A Hands-On Guide to 
 Three New Toolkits, powered by the 
 Sustainability ROI Workbook

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