Is Your Business Sustainable, or Are You Just Going Green?

2. Is Your Business Sustainable, or Are You Just Going Green? Benjamin Schultz Kelley School of Business schultzb@indiana.edu

3. Quiz Answers 1: 3, 4, 2, 5 and 1 2: E 7: C 3: A 8: E 4: D 9: B 5: D 10: D 6: G, A and D

4. First: A Few Facts

5. source: United Nations Environmental Programme

6. source: Endless-Sphere Technologies

7. source: Endless-Sphere Technologies

8. bbl/year source: Uppsala Hydrocarbon Depletion Study Group

9. There is Controversy

12. The Problem • Most will agree that there is a problem • Global warming • Climate/weather • Many will disagree on what causes the problem • Many will disagree on how to solve the problem

13. The Problem • Success! • Increased quality of life • Increased population • Increased demands on natural resources • Increased demands on land mass

14. The Problem • Global Warming • Increased population • Increased demands on natural resources • Increased demands on land mass • Tragedy of the Commons

15. Tragedy of the Commons • Incentives to exploit common resources • Fish • Natural Resources • Individuals are unable to solve these problems. • Some governing body needs to intercede. • Kyoto • Copenhagen

16. Addressing the Problem • Population control? • Hot potato • Decrease demands on natural resources? • Explore alternate forms of energy? • Develop an different life style?

17. Where do we start? • Consider the options • Be realistic • Develop benchmarks • Measure our living habits • Devise ways to bring about changes

18. Sustainability Metrics 1. Energy 2. Water 3. Waste/Recycling 4. Transportation 5. Supply Chains 6. Outsourcing

19. Measuring Our Impact on the Environment Carbon Footprint Water Footprint Ecological Footprint

20. The Carbon Footprint describes the amount of greenhouse gases (GHG) that are emitted into the atmosphere each year by an entity such as a person, household, building, organization, or company. measured in units of carbon dioxide equivalents by weight.

21. Measuring Our Impact on the Environment • Greenhouse Gasses: • Carbon dioxide (CO2) • Methane (CH4) • Nitrous oxide (N2O) • Hydrofluorocarbons (HFCs) • Perfluorocarbons (PFCs) • Sulphur hexafluoride (SF6)

22. The Carbon Footprint • Direct and Indirect emissions • Direct: • Driving a car • Indirect: • Using electricity

23. Calculating the Carbon Footprint Products Individual (household) Corporate

24. Carbon Footprint: Products

25. How Green is My Orange? Pepsi (Tropicana) hired Columbia University’s Earth Institute and environmental auditing firm Carbon Trust to calculate the carbon footprint of a 64oz. Container of OJ. Result: 3.75 lbs. of CO2. 35% was from fertilizer.

26. Calculating the Carbon Footprint Products Individual (household) Corporate

27. Carbon Footprint: Individual • Energy use (gas, electric…) • Garbage generated • Miles driven per week • Match with vehicle(s) • Miles travelled for • Vacation • Business • (air and land miles)

28. Carbon Footprint: Individual • Ecological Footprint: • Answers the question What Would the World Look Like if everyone Lived Like Me? • 26 billion global acres of land on earth = @ 4 to 4.5 acres/person. • EF for typical UNH student: • 22 global acres, or 5 Planet Earths.

29. Calculate Your Carbon Footprint • Carbon Footprint Calculator: • http://www.empowermentinstitute.net/lcd/lcd_files/LCDcalcNet.html • Water Footprint Calculator: • http://www.waterfootprint.org/?page=files/home • Ecological Footprint Calculator: • http://www.earthday.net/footprint/flash.html

30. Class Assignment:Calculate Your Carbon Footprint Carbon Footprint Water Footprint Ecological Footprint Due Next Tue (October 12)

31. Also

32. Calculating the Carbon Footprint Products Individual (household) Corporate

33. Why Go Green or Become Sustainable? • Previously: Tree Huggers • Now: • Differentiate and promote your business • Enjoy marketing edge over the competition • Economic advantages • Improve employee wellness and productivity • Conserve valuable resources • Join the growing Green Business Community

34. The Bottom Line • Profits • Traditional single bottom line • Businesses first responsibility is to shareholders: improve shareholder value • Triple Bottom Line • Profits • People • Place

35. The Triple Bottom Line • Profits • Necessary; Desirable • People • Required to help run the business • Required to purchase products and services • Place • If we destroy the earth, there won’t be any place in which to conduct business

36. The Triple Bottom Line Profits - People - Place (Also called Economic, Social Equity and Environmental) Economic - monetary capital Bottom-line earnings Competitive advantage Local spending

37. The Triple Bottom Line Profits - People - Place Social Equity – human capital Attracts new customers and employees Increases employee retention, trust and loyalty Enhances HR systems help transform employees to adopt new behaviors Stockholders Communities

38. The Triple Bottom Line Profits – People –Place Environment – natural capital Green products and services Operational efficiencies Non-renewable resources Waste and recycling

39. What Does a Sustainable Business Look Like? Going Green Becoming Sustainable

40. Going Green • Random initiatives: • Reduce waste • Save energy • Everybody else is doing it…

41. A Sustainable Business • A Sustainable Environment: • Bumper-to-bumper plan to measure all changeable aspects of the environment. • Ideal environment = Closed Loop System

42. A Sustainable Business 1: Draw a circle around it

43. A Sustainable Business Your Business 1: Draw a circle around it

44. A Sustainable Business Your Business In 1: Draw a circle around it 2: Measure all inputs

45. A Sustainable Business Your Business In Out 1: Draw a circle around it 2: Measure all inputs 3: Measure all outputs

46. A Sustainable Business Your Business In Out 1: Draw a circle around it 2: Measure all inputs 3: Measure all outputs It’s all about metrics.

47. Corporate Sustainability Reports 1. Measurement 2. Certification 3. Greenwashing

48. Corporate Sustainability Reports 1. Measurement The Greenhouse Gas Protocol Initiative (http://www.ghgprotocol.org/) The Carbon Disclosure Project (https://www.cdproject.net/en-US/Pages/HomePage.aspx) The American College and University Presidents Climate Commitment (ACUPCC) http://www.presidentsclimatecommitment.org/about/mission-history The International Council for Local Environmental Initiatives (ICLEI) http://www.iclei.org/

49. Corporate Sustainability Reports 1. Measurement (City of Bloomington) STAR Report: http://bloomington.in.gov/media/media/application/pdf/5917.pdf Peak Oil Report: http://bloomington.in.gov/media/media/application/pdf/6239.pdf Green Chicago: http://www.explorechicago.org/city/en/about_the_city/green_chicago.html

50. Corporate Sustainability Reports • 1.Measurement • 2. Certification • Corporate • State and Municipal • Academia • Products, Services and Supply Chains • Miscellaneous