1. Sustainability for strategic advantage Chris Laszlo

2. Embedded Sustainability The Next Big Competitive Advantage Chris Laszlo and Nadya Zhexembayeva 2003 2008 2011

3. In your organization, is Sustainability… Embedded or bolted-on?

5. Premium price

6. Worse qualityIntegrated into the core business With no trade-offs for customers or investors

7. Why are car companiesinvesting $$$ in electrics?

8. Driven by a Market Shift Public Media Increasing expectations Declining resources Products Customers Value Facilities & Operations NGOs GOV Investors Supply chains Regulators Employees Radical transparency Experts Unions

9. Question #2: Is Sustainability… Driving heretical innovation or incremental change?

10. Question #3: Is Sustainability… Providing a solution or only doing less harm?

11. Blue Ocean Strategy Disruptive Innovation change Improve strategic positioning sustainability position

12. change sustainability position

13. How Sustainability creates business value 6 Business Context Influencing industry standards 5 Brand Protecting & enhancing brand Entering new markets 4 Market 7. Innovation Differentiating products 3 Product 2 Efficiency Reducing energy, waste, mats Mitigating risk 1 Risk

14. In summary Questions to ask about sustainability in your business strategy: Is it only bolted-on or embedded? Is it only incremental change or heretical innovation? Is it only doing less bad or providing a solution? Tools to use: The 6 + 1 levels of value creation The ES Cloud