Sustainability Strategy for Service Organizations

Scott Beckerman – Director of Corporate Sustainability

September 14, 2016

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A long time ago, in a galaxy far, far away…

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People

Business

Sustainability at Comerica

Community

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“Never forget: the market is the most powerful institution on the planet, and business the most powerful entity within it…If business does not lead the way toward solutions for an environmentally sustainable, carbon –neutral world, there will be no solution.”

Andrew Hoffman, University of Michigan

Sustainability and Business

“ ‘at this moment in time, almost everything being done in the name of sustainability entails attempts to reduce unsustainability.’ But reducing unsustainability does not and will not create sustainability.”

Andrew Hoffman (quoting John Ehrenfeld)

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Comerica’s Definition of Sustainability

Comerica understands "sustainability" as an approach to

conducting ourselves in a way that meets the

needs of the present in ways that do not

compromise the ability of future generations to meet

their needs.

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Sustainability Program Objectives

Develop and implement a strategy for pursuing sustainability and corporate

responsibility in a way that meets the expectations

of shareholders and other key stakeholders AND

that improves business performance by reducing costs, reducing risks, increasing

revenue, and enhancing our reputation and brand.

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Pillars of a Sustainable Enterprise

üWorkplace üWorkforce üProducts & Services üFunctions & Processes üGovernance

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KNOWLEDGE AND

INNOVATION

REVENUES AND

OPPORTUNITIES

COST AND RISK

REDUCTION

LICENSE TO OPERATE, REPUTATION AND BRAND

Value Creation Model In

tern

al Fo

cus External Focus

Starting Focus

Future Focus

Adapted from: Stuart Hart and Mark Milstein, “Creating Sustainable Value”

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Engaging with Stakeholders

Economic Environmental

Social Governance

People Planet Profit

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We approach sustainability as a way to create business value, now and into the future, in order to address our needs, and the needs of our stakeholders.

Comerica’s Value Creation Approach To Sustainability

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Corporate Sustainability Department

CFO Executive Sponsor

Board of Directors

Sustainability Council

Green Teams

Implementing the Strategy

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Comerica Core Values

Involvement: ◦ We embrace our critical

role in the communities we serve and acknowledge that our success is intertwined with theirs. We will make sustainability a priority.

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“Recognize that it’s your choice whether to let quarterly Wall Street realities kill your dreams – or to let

them provide the necessary discipline to hone new ideas into

more valuable innovations for the company, society and the planet. If

you find boundaries, don’t whine about them. Get creative!”

Jim Hartzfield

Hartzfield Sustainability Advisors (formerly of Interface)

Realities of Corporate Life…

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Setting Priorities & Engaging with Stakeholders

“Impact Assessment”

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Impact Matrix Im

porta

nce t

o Exte

rnal

Stak

ehold

ers

Importance to Comerica

Serving the Underbanked

Environmental Risk

Climate Change and GHG Emissions

Green Lending

Waste Paper

Water Stewardship

Employee Engagement Volunteerism &

Philanthropy

Diversity & Inclusion

Talent Attraction, Retention, & Development

Customer Privacy & Protection

Financial Performance

Indirect Economic Impact

Economic Environment

Innovation & Technology

Credit Risk Customer Education & Financial Literacy

Public Policy & Government Relations

Board Diversity

Responsible Marketing & Sales

Community Reinvestment & Development

Cybersecurity

Anticorruption, Ethics & Countering Bribery

Brand & Reputation Mgmt./Reputation Risk

Regulatory Risk/ Compliance

Transparency

High High

Highest

Highest

Maintain awareness!

Are we telling the story?

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Comerica’s Environmental Policy Statement

Comerica Bank is committed to protecting and preserving the environment because we realize that a healthy environment is crucial to the long-term well-being and prosperity of the people, businesses, and communities we serve…We seek supplier partners who share our values and concerns and are conscientiously attempting to improve their environmental sustainability performance over time.

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Requests for Proposal (RFP)

Supplier Wave Scoring

What are you doing to be more

sustainable?

How can you help us be more

sustainable?

Supply Chain: Two Basic Tools, Two Basic Questions

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Partnership Example: Comerica Shred Days

Contributing to our communities with

relevant and impactful events

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Exploring Our Progress

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Exploring Our Progress – Knowledge & Innovation

Master of Sustainability Awareness (MSA) Program

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Exploring Our Progress – Cost & Risk Reduction

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Exploring Our Progress – Opportunities & Revenues

Tracking our “Green Loans”

Supporting our customers:

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Exploring Our Progress – Reputation & Brand

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Is Sustainability just for Large Corporations?

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1. Consider your business & think broadly about economic, environmental, social, and governance issues. What are your:

- Impacts? - Risks? - Opportunities?

2. Benchmark. What are others in your space doing? What should you adopt? Where do you have an opportunity to lead or differentiate? Are other’s focusing on non-critical issues?

3. Engage. Consult trade groups, customers, other stakeholders. Learn about other’s expectations of your business.

What does sustainability mean to your business?

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1. Develop your company’s business case for implementing a Sustainability Program and present to executive team for approval & support

2. Establish your company’s long-term Sustainability strategy and key commitments

3. Start measuring your environmental data so that you can better manage your impacts

4. Set Sustainability goals 5. Report on company’s Sustainability progress

Sustainability for Any-Sized Business

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Embedding Sustainability

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1. Executive & leadership support are critical

2. Develop a formal strategy with broad participation

3. Integrate sustainability into culture and business units

4. What gets measured gets managed

5. Goals drive performance

6. Have strong governance & clear responsibilities

7. Communicate progress, share early wins, evaluate setbacks

8. Build relationships & be generous in sharing credit

9. Be transparent & don’t let passions run ahead of progress

10. Ongoing training & engagement is constant challenge

11. Be patient, make incremental progress – you’ll be amazed over time

12. Don’t be afraid to fail; be transformational

Some Lessons Learned, So Far

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“As you move forward and continue your climb, remember that ‘there’s always a better way,’ and ‘knowing’ the answers stunts learning and creativity. Be willing to take unexpected journeys and seek out the crazies around you.”

Jim Hartzfield Hartzfield Sustainability Advisors

(formerly of Interface)

Parting Thought