green’s competitive edge political & economic implications & key risks fppa 12 th annual...

Green’s Competitive EdgePolitical & Economic Implications

& Key Risks

FPPA 12th Annual ConventionTucson, AZMarch 3, 2009

DuPont Packaging Graphics for FPPA Annual Conference, March 2009

Provide Insights & Info…

How sustainability fits into the changing landscape

Who’s driving sustainability

What’s important now

The risks associated with sustainability

Where your business can focus for success


Sustainability Today…

• More defined and more important than 1 year ago

• Being leveraged as the neutral and galvanizing cause that people, parties, governments and nations can agree on.

• Strongly coupled with the economy & economic recovery

Sustainability is bigger than you and me and it’s surrounded with very powerful players.


Sustainability Importance – Where it Started

Wanting to move faster and push farther than anyone else and knowing that nations, regions, municipalities and states would never move quickly enough, Wal-Mart created THE SCORECARD.

Establishes 7R’s Launches Sustainability

Summits Establishes Sustainability

Value Network Pushes China to “go

green”


Hardening Their Resolve… Even in Uncertain Times

“With all that is going on in the global economy, should being a socially and environmentally responsible company still be a priority? You’re darned right

sustainability should be a priority.”

“This global economy will turn around. But the social and environmental challenges we are addressing today will be with us for decades.”

New Wal-Mart Boss Wants to "Accelerate" Green Efforts

Outgoing Walmart CEO, Lee Scott – Fall 2008

Incoming Walmart CEO, Mike Duke – 2/2009

…the company will continue to work toward meeting its various green targets, such as its goal to become a zero waste operation and source all its energy from renewable sources, while stepping up pressure on suppliers to improve their environmental performance.

www.businessgreen.com, accessed 2/23/09


Wal-Mart Is Not Alone.. Increasing Focus on Sustainable Packaging

CPGC’s focus their sustainability efforts:

• Reduce packaging weight – package to product rations

• Reduced greenhouse gas emissions

• Reduced water usage

• Biodegradable alternatives to plastic

• Maximizing the use of recycled materials

• LCA results to understand how to reduce environmental burdens

• Standardized eco-labeling

• Reduce waste and improve handling


CPG’s & Retailers Moving Beyond Packaging Materials

Beginning to consider the “whole value chain’s” sustainability

Moving toward “greening the supply chain”

Developing new relationships & learning

Research Organizations

3PL, 4PL, 5PL

Academia

Consultants

Non-Gov’tOrganizations

Trade Associations

The Collaborative Supply Chain“We want to look at innovation to

reduce not just packaging materials, but also energy, water, transportation and replacing the use of non-renewable energy materials with renewables.”

Tony Burns P&G


The Collaborative Packaging Value Chain

New collaboration opportunities across the value chain

Don’t forget about non-traditional collaboration

Google Wants Big Piece Of Home Energy Management Biz

Google has unveiled Google PowerMeter, a prototype Web application that displays home energy consumption broken down by appliance. The software requires “smart” meters, which provide real-time information to both the utility and the customer, ...


The Collaborative Packaging Value Chain

New collaboration opportunities across the value chain

Don’t forget about non-traditional collaboration

Competition: value chain vs. value chain

Raw materials suppliers working with Brand Owners

Opportunities to “close the loop” on packaging waste Waste to Value

Partnering with NGOs

Retailers creating packaging departments Looking to differentiate their packaging

Net: Linear relationships of the past are not a viable means for future growth


The Sustainable Packaging Leaders

Linkages to retail &consumer products companies strengthening

Cooperation and collaboration platforms expanding

Focused on energy, emissions & natural resources

High levels of visibility & influence

SUSTAINABLE PACKAGINGCOALITION


What are the Leaders Saying:Ann Johnson/SPC on Innovation

• We need to value materials more than we currently do

• The cost of something doesn't reflect the environmental impact. There isn't a price/cost associated with emissions (yet).

Source: Excerpts, CMM Online, “Sustainable Packaging: What Does It Really Mean For Converters? [part 2]”, May 2008

SPC Sustainable Metrics Project Project’s primary purpose is to develop guidelines for measuring the sustainability of packaging and packaging systems.

GHG Protocols & GHG Productivity


Gwen Ruta, VP Corporate Partnerships Excerpts: “Waste Less, Earn More”

December 2008

Potential in the US and the existence elsewhere of regulatory schemes related to carbon emissions

Increasing transparency of corporate actions

Needed shift from companies viewing the environment as a cost center to seeing it as a proactive & strategic revenue-enhancer

Pollution is waste, waste costs money – reduce pollution, reduce costs

Pay to burn fuel, create emissions – reduce burning, reduce emissions, reduce costs

Creation of new markets through sustainability leadership

Source: MIT Sloan Management Review, Waste Less, Earn More (What a Partnership Insider Has Learned), Interview with Gwen Ruta, 12/09/08


McKinsey Energy Study Focused on Carbon Abatement & Economic Growth

• Calculate the amount of output produced by metric tonne of CO2e emitted

• Today: $740 of GDP/tonne of emissions

• To reach goals set by the IPCC (International Panel on Climate Change) must increase 10 fold or $7,330 GDP/tonne

Calls for efficiency standards to overcome the “market imperfections” that prevent energy efficiency opportunities with net economic benefits from being realized

Calls for governments to create stable and long-term incentives to promote low-carbon energy sources and discourage emissions of CO2

Calls for incentives to preserve forests

Source: http://www.mckinsey.com/clientservice/ccsi/economic_opportunities.asp


Government, NGO’s & Business Agreeing

Next 3 – 5 years

Climate change will drive the sustainability agenda

3 – 5 years after that…

Water: if we don’t stop climate change there will be less of it to go around

On Climate Change: National & International programs that will raise the cost of doing business for companies that aren’t paying attention to climate change are on their way. The near-term plan & stimulus dollars were set in place at the National Clean Energy Summit last week.


The Powerhouse Behind “The Plan”

The National Clean Energy Project: Building the New Economy

• Focus on modernizing and expanding the electricity grid

• Smart Grid component capable of capturing and distributing renewable energy from where it’s plentiful to where it’s needed.

• Integrating energy efficiency and distributed generation into operation and regulation

• Rapidly increasing transmission capacity for renewable energy

• Reducing our nation’s dependence on foreign oil by:

• Examining short- and long-term solutions to replace foreign oil with domestic resources to fuel vehicles and trucks, including natural gas.

S. Chu

Sen. H. Reid C. Browner

K. Salazar

B. Clinton & J. Podesta

DOE Awarded $38.7B

T. Boone Pickens


Sustainability Defined…

Energy (NR-e)

Reasons:

Climate Change

National Security

Drivers: Government

Biz Risks:

Supply Disruptions

Price Volatility

Profit Losses

Emissions (CO2e)

Reasons:

Climate Change & Health

Drivers:

Government (energy)

NGO’s

States

Biz Risks:

Additional Costs Corporate Image

Natural Resources

Reasons:

Globalization

Resource Scarcity

Drivers:

Retailers States NGO’s Communities

Biz Risks:

Additional Costs Corporate Image

Summary: what’s important now, why, who’s driving it & the risks


De-Risking… Eliminate & Reduce

E/R Risks, E/R CostsReduce Energy Consumption Along with

Related Emissions (GHGs) ahead of regulations

Move Toward Renewables – Costs of Non-renewable energy likely to be increased to stimulate renewable adoption

De-materialize your processes – take out what you can - embrace alternatives & innovation

Establish value for your waste

“Green your supply chain”

Be Transparent & Require Transparency

Align with sustainable player & collaborate

Seek Certifications

E/R Risks, E/R CostsReduce Energy Consumption Along with

Related Emissions (GHGs) ahead of regulations

Move Toward Renewables – Costs of Non-renewable energy likely to be increased to stimulate renewable adoption

De-materialize your processes – take out what you can - embrace alternatives & innovation

Establish value for your waste

“Green your supply chain”

Be Transparent & Require Transparency

Align with sustainable player & collaborate

Seek Certifications


Thank You… Questions

“We do not inherit the Earth from our Ancestors, we borrow it from our Children.”

[email protected]

Learn more at www.cyrel/sustainability.com


Sources: Environmental Data & GuidanceEnvironmental Protection Agency: www.epa.gov

Sustainable Packaging Coalition: http://www.sustainablepackaging.org

World Business Council for Sustainable Development http://www.wbcsd.org

World Resources Institute: http://archive.wri.org

World Packaging Organization: http://worldpackaging.org

Emission factors to convert energy usage to carbon emissions available at: Department of Energyhttp://www.eia.doe.gov/oiaf/1605/coefficients.htmlWorld Resources Institutehttp://www.ghgprotocol.org/calculation-tools

Others: Carbon Fund: http://www.carbonfund.org/

U.S. Printing Sustainable Green Printing Partnership: http://www.sgppartnership.org

Read “Economic Opportunity in a Carbon Neutral World” at:http://www.mckinsey.com/clientservice/ccsi/economic_opportunities.asp

green’s competitive edge political & economic implications & key risks fppa 12 th annual...

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