sustainability for business advantage
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Sustainability for Business Advantage. Association of Strategic Planning Chicago October 7, 2008. Topics for Discussion. What is “Sustainability”? Why Should Companies Care? How Can Companies Use Sustainability for Business Advantage?. What is Sustainability?. - PowerPoint PPT PresentationTRANSCRIPT
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Sustainability for Business Advantage
Association of Strategic Planning
Chicago
October 7, 2008
Topics for Discussion
• What is “Sustainability”?
• Why Should Companies Care?
• How Can Companies Use Sustainability for Business Advantage?
2
What is Sustainability?
“The ability to meet today’s global economic, environmental and social needs without compromising the opportunity of future generations to meet theirs.”
– 1987 Brundtland Commission Definition
3
Triple Bottom Line: People, Planet and Profits
“Every single pressing social and global issue of our time is a business opportunity”
--Peter Drucker
S E
B
S E
B
S EB
Source: Eco Squared Consulting
Why Should Companies Care?
4
Several factors have combined to make sustainability an imperative for most companies
Real Risks
Tougher Government Regulations
Reputation Impacts
ConsumerAttitudes
Increasing Costs
CustomerAttitudes
Sustainable Value
5
SustainableValue
Stakeholder Value
Shareholder Value
+
+
-
Unsustainable(Value Transfer)
Unsustainable(Lose/Lose)
-
Sustainable Value
OpportunitiesEnhanced reputationProduct differentiationMotivated employeesLicense to operateEntry into new markets
Unsustainable(Value Transfer)
RisksCustomer de-selectionPreemptive regulationReputation damageFines, penaltiesLoss of market share
Source: Chris Laszlo, Sustainable Value Partners 2007
6
Sustainable
Value
Stakeholder Value
Shareholder Value
+
+
-
Source: Chris Laszlo, Sustainable Value Partners 2007
7
Sustainable
Value
Shareholder Value
+
+
-
-
Stakeholder Value
Source: Chris Laszlo, Sustainable Value Partners 2007
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Sustainable
Value
Stakeholder Value
Shareholder Value
+
+
-
OpportunitiesMore loyal customersMotivated employeesEnhanced reputationLicense to operate
Entry into new markets
hybrid
Source: Chris Laszlo, Sustainable Value Partners 2007
A New Mindset
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Old Mindset New Mindset
Obligation Opportunity
Tangential to Strategy Integral to Strategy
Disconnected Coordinated
Soft Hard
Within 4 walls Throughout Network
Next Quarter Next Quarter through Next Generation
Attitude
Strategic Link
Organization
Benefits
Scope
Timeframe
The new mindset differs significantly from common approaches to corporate social responsibility
Source: Eco Squared Consulting
Leaders Perspective
“. . .You either get out ahead of these things or you get stomped by them”
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--Jeff Immelt, CEO of General Electric
Fortune Magazine, 2008
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Transparency: Dole Organic Bananas
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Facility Description, Certification Detail, Photos
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Sustainable Value Creation Opportunities
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Complying to government regulations
Reducing costs (energy, waste, pollution)
Source: Chris Laszlo, Sustainable Value Partners 2007
Sustainable Value Creation Opportunities
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Complying to government regulations
Reducing costs (energy, waste, pollution)
Creating sustainable products differentiation
Meeting needs for sustainability solutions
Developing sustainability brand identity. Becoming an employer-of-choice
Shaping legislation: “new rules of the game”
Incr
easi
ng
Sco
pe
Source: Chris Laszlo, Sustainable Value Partners 2007
Sustainability Goals
To be supplied 100% by renewable energy
Source: Sustainable Value Partners, released in speech by Wal-Mart CEO Lee Scott October 24, 2005
Stores 25% more efficient in 7 years
Fleet 25% more efficient in 3 years
To create zero waste To sell products that sustain our resources and the environment
•20% supply base aligned in 3 years
25% reduction in solid waste in 3 years
Improve packaging of every product sold
Fleet of Class 8 heavy trucks are 25% more fuel efficient in 3 years
Fuel Efficiency
Source: Chris Laszlo, Sustainable Value Partners 2007
Existing stores will be 20% more efficient by 2012; new stores 25-30% by 2009
Interior with sales floor lighting in “full off” mode LED Refrigerated
Display Lighting
Store Energy Savings
Source: Chris Laszlo, Sustainable Value Partners 2007
• Compact fluorescent light bulbs
• Reformulated Detergents
• Certified Sustainable Seafood
• Organic Cotton
• Plant Based Polymer Packaging
Sustainable Products
Source: Chris Laszlo, Sustainable Value Partners 2007
How to Move Forward
20
“That’s enough on reducing our carbon footprint, Stevens. Wilson, any luck on finding a new planet?”
Source: Harvard Business Review, April 2008
Sustainable Value Creation Process
21
Source: Eco Squared Consulting
Education
Experience
Stakeholder Expectations
Operational Assessment
Supply Chain Impacts
Set Goals
Identify Initiatives
Establish Priorities
Establish Value Networks
Develop Business Case
Capture Value
Validate Results
Capture Learning
Communicate and Celebrate
Leading companies follow specific steps to create sustainable value
Contact Us
22
Bruce Bendix
Eco Squared Consulting
21720 W. Long Grove Road
Suite C-302
Deer Park, IL 60010
(847) 382-5109
www.eco2consulting.com