3 R’s of Sustainability

1. 3 R’s of Sustainability PREVIEW ONLY SESSION 1:The What, Why and How of Sustainability

2. Agenda • Session 1 • The What, Why and How of Sustainability • Session 2 • The Sustainability Hierarchy • Case Study: Subaru Implementation • Reduce, Reuse, Recycle • Implementing Sustainability Measures PREVIEW ONLY

3. What is Sustainability One’s ability to “meet society’s present needs without compromising the ability of future generations to meet their own needs” (EPA) • Sustainable practices = cost savings • Save money • Create a competitive advantage PREVIEW ONLY

4. Why Study Sustainability • To meet new regulations and reporting requirements • To avoid litigation • To use sustainability as competitive advantage PREVIEW ONLY

5. Meeting New Regulations and Requirements • International Standards • Kyoto Protocol • “Carbon Market” • ISO 14001 • Copenhagen Accord • SEC Reporting Requirement PREVIEW ONLY

6. History • 3R’s and environmental awareness aftermath of WWII • 1970: Environmental Protection Agency • Monitor environmental activities • Enforce regulations • 1970: Clean Air Act • 1972: Clean Water Act • 1990: Pollution Prevention Act PREVIEW ONLY

7. Kyoto Protocol • 1997: Kyoto, Japan • 5% reduction of greenhouse gas emissions against 1990 levels (Kyoto) • Reduction goals differ by country • US did not ratify • Reduction Methods • Emissions Trading: “Carbon Market” • Joint Implementation • Clean Development Mechanism PREVIEW ONLY

8. “Carbon Market” • Trading of carbon units • Each country has specificnumber of units • Creates market and incentives • Countries can sell excess units • Can earn through other methods PREVIEW ONLY

9. ISO 14001 • Standards based on Environmental Management System (EMS) • Sets goals • Aims to meet specific requirements • Requires process implementation PREVIEW ONLY

10. Copenhagen Accord • 2009: Copenhagen, Denmark • Follow up to Kyoto Protocol • Emissions reductions set by 2020 • United States agrees to membership • Expected to generate $100 billion • Aid for developing countries • Success not yet determined • Disagreements in reporting methods PREVIEW ONLY

11. SEC and GRI • Enforcing reporting requirements • Began spring of 2010 • Increased visibility in regards to environmental impact • Global Reporting Initiative (GRI) • Guidelines • Measurement tool • Internationally accepted PREVIEW ONLY

12. Litigation • Accountability for actions • Increased litigation on environmental issues • Lawsuits • Exxon Mobil • BP and Gulf PREVIEW ONLY

13. Market Forces • Sustainability=competitive advantages • Market for sustainability practices • Green marketing campaigns • Walmart • Leader in sustainability management • Leverage to create sustainable supply chain • Powerful advantage over competitors • Long term zero waste goals

14. Discussion • What are some potential risks your company or department may face due the new laws and litigations on Sustainability? • How might your company or department benefit from implementing new sustainability standards? • Could the new standards open new market opportunities? • Could promoting your new standards give you a competitive advantage over other companies in your industry?

15. Session Break PREVIEW ONLY 10 minutes

16. 3 R’s of Sustainability PREVIEW ONLY SESSION 2: Hierarchy Benefits Case Study 3 Steps

17. The Hierarchy PREVIEW ONLY

18. Sustainability Benefits • Discounts • Lower Energy Consumption • Resource Conservation • Low Product Costs • Improved/Competitive Prices • Entrepreneurial Innovation • Economic Stewardship • Decreased Emissions and Pollution • Improved Air and Water Quality • Competitive Advantage PREVIEW ONLY

19. Case Study: Subaru • Decreased solid waste 99% • 14% reduction in electricity consumptionon a per-car basis since 2000. • First automotive plant to be “Zero Landfill” in 2004. • Recycle 99.9% of all waste. • 81% of suppliers are ISO 14001 certified. • Reduced waste per vehicle 46%. PREVIEW ONLY

20. Step 1: Reduction • View Reduction Video / Discuss Issues • What are some potential opportunities at your company or department for reducing waste? • What is the magnitude of cost reduction associated with the waste reduction? PREVIEW ONLY

21. Step 2: Reuse • View Reuse Video / Discuss Issues • What are some potential opportunities at your company or department for reusing materials? • What is the magnitude of cost reduction associated with reuse? PREVIEW ONLY

22. Step 3: Recycle • View Recycle Video / Discuss Issues • What are some new incentive programs that could speed up the implementation and success of a new Sustainability program at your company or department? PREVIEW ONLY

23. Lessons Learned • Profits come from increasing efficiency and reducing waste- but they don’t necessarily come right way. • Management’s leadership is crucial in setting goals and getting departments to cooperate. • The front lines must be engaged. • Green initiatives achieve lots more when companies involve their suppliers. • All wastes are potential products. • Green Leadership creates competitive advantage. PREVIEW ONLY

24. 9 Steps to Sustainability • Engage the support of Upper Level Management • Organize aGreen Team • Conduct a Waste Assessment • Establish Waste Reduction goals • Secure Recycling Markets • Set up a Collection and Storage System • Purchase Recycled Goods • Train Staff and Promote the Program • Measure and Evaluate Procedures and Progress PREVIEW ONLY

25. Lessons Learned • 3Rs = Increased Profitability • Top Management Leadership is Crucial • All Employees must be involved • Supplier Involvement increases benefit • All Wastes are potential products • Green Leadership creates a Sustainable Competitive Advantage PREVIEW ONLY