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COMMUNICATING THE BU$INESS CA$E(S) FOR SUSTAINABILITY. University of Calgary Distinguished Speaker Series March 3, 2016. bobwillard@sustainabilityadvantage.com.
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COMMUNICATING THE BU$INESS CA$E(S) FOR SUSTAINABILITY University of CalgaryDistinguished Speaker Series March 3, 2016 bobwillard@sustainabilityadvantage.com
“Over the last 10 years, the ‘Sustainability Imperative’ has emerged, magnified by escalating public and governmental concern about climate change, industrial pollution, food safety,and natural resource depletion, among other issues.” David Lubin and Daniel Esty, HBR, May 2010.
NESTED INTERDEPENDENCIES Environment Society Business
NESTED INTERDEPENDENCIES Society and Business are wholly owned subsidiaries of the Environment
BUSINESS IMPACTS THE NESTS Environment Society Business
BOOMERANG IMPACTS Environment Society Business
GREAT ACCELERATION DASHBOARD Safe operating space Will Steffan et al, “The Trajectory of the Anthropocene: The Great Acceleration,” Anthropocene Review, Jan. 2015.
GLOBAL RISKS High Impact Likelihood High World Economic Forum (WEF), “Global Risks 2016,” January 2016.
“Expect the Unexpected: Building business value in a changing world,” KPMG, 2012
ENABLERS vs. ONE MORE GOAL Profit Share price Brand value Revenue growth Market share Expenses Access to capital Talent wars Productivity Innovation Risk management Security of supply “Sustainability” (SUSTAINABILITY) STRATEGIES
“BEST PRACTICES” CASE Opportunities P&L Statement Risks Revenue 7 Risks to Revenue +9% Revenue growthCompany reputation; Innovative products; Innovative services & financing Energy costs -75% 7 Risks to Expenses Waste costs -20% Expenses Materials & water costs -10% Employee productivity & innovation +2% Employee attrition costs -25% -16% to -36% PROFIT Sustainability Capital Reserve +51% to +81% sustainabilityadvantage.com
60-employee manufacturing company 42 projects between 2006-2008 58% reduction in electricity usage 90% reduction in natural gas usage Reduced annual CO2 emissions by 115 tonnes Increased profits by 76% Invested $46,186 to yield energy savings of $89,152 Average pay-back period of 6.3 months “Manufacturer finds lighting energy efficiency convenient,” Green Manufacturer, March 1, 2010
Opportunities could increase Profit by 51-81% Bottom-Line Business Case Risks could decrease Profit by 16-36% “Expect the Unexpected: Building business value in a changing world,” KPMG, 2012
“BURNING PLATFORM” FOR CHANGE Piper Alfa oil and gas platform exploded in the North Sea, July 6, 1988. Worst catastrophe in 25 years of exploration. The accident killed 165 of 220 crew members. Andy Mochan plunged 15 stories into a burning sea of oil and debris, knowing he would survive only 20 minutes in the freezing water. Why did Andy jump? He chose uncertain death over certain death. The pain of his “current reality” was too great. He jumped because he had to, not because he wanted to. Based on Daryl Conner, Managing at the Speed of Change, 1992.
CASE FOR FUTURE-FITNESS wiki.futurefitbusiness.org/overview
FUTURE-FIT BUSINESS A Future-Fit Business creates value while in no way undermining – and ideally increasing – the possibility that humans and other life will flourish on Earth forever. If it were to operate forever, it would not only do no harm, it could do well by doing some net good.
3-STEP METHODOLOGY wiki.futurefitbusiness.org/overview
FUTURE-FIT BUSINESS GOALS wiki.futurefitbusiness.org/overview
CASE FOR FUTURE-FITNESS wiki.futurefitbusiness.org/overview
RESOURCES futurefitbusiness.org www.sustainabilityadvantage.com
COMMUNICATING THE BU$INESS CA$E(S) FOR SUSTAINABILITY University of CalgaryDistinguished Speaker Series March 3, 2016 bobwillard@sustainabilityadvantage.com