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In search of. Responsible Excellence. 10 modules in 4 days. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Sustainable Development – the political agenda Corporate Social Responsibility – a business agenda Sustainability and Innovation Case study – A mobility breakthrough A corporate case – ABB
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In search of Responsible Excellence
10 modules in 4 days 1 2 3 4 5 6 7 8 9 10 • Sustainable Development – the political agenda • Corporate Social Responsibility – a business agenda • Sustainability and Innovation • Case study – A mobility breakthrough • A corporate case – ABB • Case study – a mobility breakthrough • Stakeholders and boundaries • Value creation – difficulties and evidence • Responsible excellence – a performance model • Responsible Excellence and the real world
6% factor 5 Eco-efficiency factor 10 Compact fluorescentlight bulbs Electroluminescentdiodes Where is the green customer? Purchasing preference Innovation at work
Source: European Lamp Companies Federation 0 10 20 30 40 50 60 70 80 90 100 Glowing filament-GLS Lumen/Watt Halogen Fluorescent tubes High Intensity Discharge - HID Compact Fluorescent - CFL Switch 36% ofGLS to CFLs saves 1% of Europe’stotal electricityconsumption…
The economics of substitution Whatis yourmarketing strategy?
Provide & inform consumer choice Life cycle cost advantages
tabs for a better wash at lower impact, Results per capitafrom 1996 to 2001: (target) Energy - 6.3% (- 5%) Detergent - 7.9% (- 10%) - 16% per wash Poorly degradable ingredients - 23% (- 10%) Packaging - 6.7% (- 10%) A detergent industry initiative Washright
60 000 customers Changing the ways we move, Mobility solutions 100 000 produced 4.2 l gas & 104 g CO2/km Transport causes 26% of the world’s CO2 and growing …
Eco-efficiency – necessary but not sufficient • Low energy lighting, • Hybrid cars, mobility systems, • Green tyres, • Biopolymers, • Fair trade coffee and textiles, • Low energy housing, • Many others… Can only succeed in the right market framework
Eco-efficiency became also a policy concept How eco-efficiency supportsa competitive economy. Ex:EU Lisbon process
The market is a human construct WrongMarketSignals Subsidies Externalities Free Riders Corruption
Economic instruments Fiscal reform Transparency & disclosure The market is a human construct that can be improved WrongMarketSignals SubsidiesExternalitiesFree Riders Corruption
2500 Number ofcompanies Total Dow Jones Industrial Sustainable Asset ManagementCorporate Sustainability Assessment www.sustainability-index.com 436 99 Detailed evaluation GC signatories Dow Jones Sustainability Indexbest 10% by industry sector market capitalisation 317 76 Socially Responsible Investment screens stocks
28 65 % of group Suppliers guidelines – Human Rights 68 90 Environment 46 68 Labor Practices 77 95 Policy on impacts of products and services 28 37 Measure customers’ satisfaction 36 64 Projects with external stakeholders 38 20 Higher employee satisfaction 35 23 >90% of employees get job training 14 36 Publish certified SD report 41 56 Publish corporate environmental targets Making a difference 436 99
115 110 105 100 – 3.3% 95 – 7.0% 90 85 80 75 70 65 60 55 50 06/01 09/01 12/01 03/02 06/02 09/02 12/02 03/03 06/03 09/03 12/03 03/04 06/04 A slight value advantage in the long run 3-Years Performance Global Compact Signatories 76 Performance Global Compact Signatories 76 (in USD) MSCI World (in USD)
i e i < 0 0 1 i The triple bottom line formula i P= me P price e earnings m market multiple iimpacts intangibles innovation integration integrity…
Seven Bottom Line benefits Source: The Sustainability Advantage; Bob Willard; www.newsociety.com • Easier hiring of the best talent • Higher retention of top talent • Increased employee productivity • Reduced expenses for manufacturing • Reduced expenses at commercial sites • Increased revenue/market share • Reduced risk, easier financing
The business Case Matrix Source: SustainAbility; London, UK www.sustainability.com/business-case/matrix.asp Sustainability factors Human resources management Stakeholder engagement Businesssuccess factors Community development Strong impact Process eco-efficiency Human capital Brand value and reputation Cost savings and productivity Resources growth and market access Risk management and license to operate
In search of Responsible Excellence
Eco-efficiency became also a policy concept How eco-efficiency supportsa competitive economy. Ex:EU Lisbon process