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Sustainability for Business Advantage

Sustainability for Business Advantage. Association of Strategic Planning Chicago October 7, 2008. Topics for Discussion. What is “Sustainability”? Why Should Companies Care? How Can Companies Use Sustainability for Business Advantage?. What is Sustainability?.

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Sustainability for Business Advantage

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  1. Sustainability for Business Advantage Association of Strategic Planning Chicago October 7, 2008

  2. Topics for Discussion • What is “Sustainability”? • Why Should Companies Care? • How Can Companies Use Sustainability for Business Advantage?

  3. What is Sustainability? “The ability to meet today’s global economic, environmental and social needs without compromising the opportunity of future generations to meet theirs.” • 1987 Brundtland Commission Definition E S B Triple Bottom Line: People, Planet and Profits E S B S B E “Every single pressing social and global issue of our time is a business opportunity” --Peter Drucker Source: Eco Squared Consulting

  4. Why Should Companies Care? Several factors have combined to make sustainability an imperative for most companies Increasing Costs Reputation Impacts Real Risks Tougher Government Regulations Customer Attitudes Consumer Attitudes

  5. Opportunities Enhanced reputation Product differentiation Motivated employees License to operate Entry into new markets Risks Customer de-selection Preemptive regulation Reputation damage Fines, penalties Loss of market share Unsustainable (Value Transfer) Sustainable Value Sustainable Value Shareholder Value + Sustainable Value Stakeholder Value - + Unsustainable (Lose/Lose) Unsustainable (Value Transfer) - Source: Chris Laszlo, Sustainable Value Partners 2007

  6. Shareholder Value + Sustainable Value Stakeholder Value - + Source: Chris Laszlo, Sustainable Value Partners 2007

  7. Shareholder Value + Sustainable Value Stakeholder Value - + - Source: Chris Laszlo, Sustainable Value Partners 2007

  8. hybrid Shareholder Value Opportunities More loyal customers Motivated employees Enhanced reputation License to operate Entry into new markets + Sustainable Value Stakeholder Value - + Source: Chris Laszlo, Sustainable Value Partners 2007

  9. A New Mindset The new mindset differs significantly from common approaches to corporate social responsibility Attitude Strategic Link Organization Benefits Scope Timeframe Source: Eco Squared Consulting

  10. Leaders Perspective “. . .You either get out ahead of these things or you get stomped by them” --Jeff Immelt, CEO of General Electric Fortune Magazine, 2008

  11. Transparency: Dole Organic Bananas

  12. Facility Description, Certification Detail, Photos

  13. Sustainable Value Creation Opportunities Reducing costs (energy, waste, pollution) Complying to government regulations Source: Chris Laszlo, Sustainable Value Partners 2007

  14. Shaping legislation: “new rules of the game” Developing sustainability brand identity. Becoming an employer-of-choice Meeting needs for sustainability solutions Creating sustainable products differentiation Sustainable Value Creation Opportunities Increasing Scope Reducing costs (energy, waste, pollution) Complying to government regulations Source: Chris Laszlo, Sustainable Value Partners 2007

  15. Sustainability Goals To be supplied 100% by renewable energy To create zero waste To sell products that sustain our resources and the environment • Stores 25% more efficient in 7 years • Fleet 25% more efficient in 3 years • 25% reduction in solid waste in 3 years • Improve packaging of every product sold • 20% supply base aligned in 3 years Source: Sustainable Value Partners, released in speech by Wal-Mart CEO Lee Scott October 24, 2005

  16. Fuel Efficiency Fleet of Class 8 heavy trucks are 25% more fuel efficient in 3 years Source: Chris Laszlo, Sustainable Value Partners 2007

  17. Existing stores will be 20% more efficient by 2012; new stores 25-30% by 2009 Store Energy Savings Interior with sales floor lighting in “full off” mode LED Refrigerated Display Lighting Source: Chris Laszlo, Sustainable Value Partners 2007

  18. Sustainable Products • Compact fluorescent light bulbs • Reformulated Detergents • Certified Sustainable Seafood • Organic Cotton • Plant Based Polymer Packaging Source: Chris Laszlo, Sustainable Value Partners 2007

  19. How to Move Forward “That’s enough on reducing our carbon footprint, Stevens. Wilson, any luck on finding a new planet?” Source: Harvard Business Review, April 2008

  20. Sustainable Value Creation Process Leading companies follow specific steps to create sustainable value • Establish Value Networks • Develop Business Case • Stakeholder Expectations • Operational Assessment • Supply Chain Impacts • Set Goals • Identify Initiatives • Establish Priorities • Education • Experience • Capture Learning • Communicate and Celebrate • Capture Value • Validate Results Source: Eco Squared Consulting

  21. Contact Us Bruce Bendix Eco Squared Consulting 21720 W. Long Grove Road Suite C-302 Deer Park, IL 60010 (847) 382-5109 bbendix@eco2consulting.com www.eco2consulting.com

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