Is this your world

1.  I want to thank Hawker Beechcraft Corporation and the Westchester Aviation Association for inviting me to speak with you today. Sustainability is one of those terms that can be defined in countless ways. I choose to think of sustainability as a new paradigm in economics which like the Industrial revolution, the IT revolution or the Internet revolution will change everything we know about business. It is my hope that part one of my presentation will scare you, part two excite you and part three inspire you. I want to thank Hawker Beechcraft Corporation and the Westchester Aviation Association for inviting me to speak with you today. Sustainability is one of those terms that can be defined in countless ways. I choose to think of sustainability as a new paradigm in economics which like the Industrial revolution, the IT revolution or the Internet revolution will change everything we know about business. It is my hope that part one of my presentation will scare you, part two excite you and part three inspire you.

2. 2 Is this your world? This Dilbert strip accurately sums up my thoughts when I was first approached about taking on the challenge of business development for sustainability�This Dilbert strip accurately sums up my thoughts when I was first approached about taking on the challenge of business development for sustainability�

3. 3 A portfolio of marketing leading brands Many know us a leading publisher of educational materials but we are much more.Many know us a leading publisher of educational materials but we are much more.

4. 4 A rich history of performance with a common goal Our mission is� We�ve been around for a while Our mission is� We�ve been around for a while

5. 5 The link between Sustainability and business is clear as day "The economy is a wholly owned subsidiary of the environment.� � Gaylord Nelson, former Governor and US Senator for Wisconsin If you remember one thing from today�s presentation, it should be this�If you remember one thing from today�s presentation, it should be this�

6. 6 Developing nations are driving exponential growth in population and energy consumption The demand for energy from increased population will be staggering. We are already at the outer limits of stretching our resources. Feeding and seeing to the basic needs 9 billion people is almost unimaginable.The demand for energy from increased population will be staggering. We are already at the outer limits of stretching our resources. Feeding and seeing to the basic needs 9 billion people is almost unimaginable.

7. 7 Energy demand will be predominantly sourced through traditional supplies Contrary to what you might be hearing�coal, petroleum and other traditional energy formats are not going anywhere.Contrary to what you might be hearing�coal, petroleum and other traditional energy formats are not going anywhere.

8. 8 The U.S. will continue to consume more energy than we produce Which continues to compound the problem of our reliance on imported energy sources for the foreseeable future.Which continues to compound the problem of our reliance on imported energy sources for the foreseeable future.

9. 9 But there is an additional cost, the one that nobody is accounting for. CO2, which is already reaching untenable atmospheric levels.But there is an additional cost, the one that nobody is accounting for. CO2, which is already reaching untenable atmospheric levels.

10. 10 In order to meet required annual levels of CO2e emissions of 16b mt/CO2e by 2050, a significant investment is needed And when we do the math, the cost of mitigating CO2 output is staggering�100s of billions a year.And when we do the math, the cost of mitigating CO2 output is staggering�100s of billions a year.

11. 11 Inaction will result in high-stakes economic, social and environmental risks and impacts And if we don�t act, the costs become exponentially greater and the potential outcomes increasingly dire.And if we don�t act, the costs become exponentially greater and the potential outcomes increasingly dire.

12. 12 And as a result�a new approach is necessary So what is sustainability and why does it matter?So what is sustainability and why does it matter?

13. 13 What are we doing to turn the tide� Governments are stepping up to support sustainability initiatives ranging from grants for technology development and innovation to job training and transformation. And it�s global. Check out China�s spend and they have the world�s fastest growing economy.What are we doing to turn the tide� Governments are stepping up to support sustainability initiatives ranging from grants for technology development and innovation to job training and transformation. And it�s global. Check out China�s spend and they have the world�s fastest growing economy.

14. 14 Long-range reduction targets have been identified, though the China and India�s targets are tied to per capita/GDP All the major economies of the world have committed to emission reduction targets including India and China. The target scientists have set is to reduce CO2 output by 80% by 2050. That will change everything.All the major economies of the world have committed to emission reduction targets including India and China. The target scientists have set is to reduce CO2 output by 80% by 2050. That will change everything.

15. 15 Business and sustainability, how do they fit? �Business is the force of change. Business is essential to solving the climate crisis, because this is what business is best at: innovating, changing, addressing risks, searching for opportunities. There is no more vital task� - Richard Branson, Chairman and CEO Virgin �Being a good steward of the environment and our communities, and being an efficient and profitable business, are not mutually exclusive. In fact they are one and the same� -Lee Scott, retired Chief Executive, Wal-Mart So as a business person why should I care? Because business ahs always been the most effective means of concurrently solving problems and creating value. These two guys get it.So as a business person why should I care? Because business ahs always been the most effective means of concurrently solving problems and creating value. These two guys get it.

16. 16 �Green� specific industries offer a range of growth with meaningful upside potential The carbon, solar, wind, and water markets all will grow double digit over the next several years creating an industrial backbone for sustainability.The carbon, solar, wind, and water markets all will grow double digit over the next several years creating an industrial backbone for sustainability.

17. 17 There is attractive and sustained growth projected across key economic sectors Money talks and $25 trillion, yes $25 trillion dollars in global assets under management are projected to be targeted for responsible investing by 2015. We also see exciting opportunities in the green education and construction markets.Money talks and $25 trillion, yes $25 trillion dollars in global assets under management are projected to be targeted for responsible investing by 2015. We also see exciting opportunities in the green education and construction markets.

18. 18 The case for business to engage is multi-tiered Most often sustainability is discussed in terms of risk mitigation or management. That�s well and good, but the more compelling conversation should be had around the growth opportunities that are out there. In the 1990s, Google was not in our vocabulary and Amazon was a river�who will be the Google and Amazon of sustainability?Most often sustainability is discussed in terms of risk mitigation or management. That�s well and good, but the more compelling conversation should be had around the growth opportunities that are out there. In the 1990s, Google was not in our vocabulary and Amazon was a river�who will be the Google and Amazon of sustainability?

19. 19 How to apply �green� thinking across your organization and time-tested business strategies apply in Sustainability Get Lean Facilities, distribution/fleet, IT, waste management Get Smart Map your value chain, how can you help your customers? Drive competition and performance Get Engaged Build morale, make it part of your culture Get Creative Redesign/re-imagine everything about your business Use it as a platform for disruptive change and innovation Ask questions, lots and lots of questions This isn�t rocket science, well maybe for some of you it is actually rocket science. These are steps to follow to unlock opportunity.This isn�t rocket science, well maybe for some of you it is actually rocket science. These are steps to follow to unlock opportunity.

20. 20 Case Study: Banking What will be the revenues in key climate change-derived sectors for the banking sector in 2020? We think it will be greater than $15 billion. What will be the revenues in key climate change-derived sectors for the banking sector in 2020? We think it will be greater than $15 billion.

21. 21 Revenue opportunities across asset classes and sectors Banking revenues in key climate change- derived sectors are conservatively expected to grow to�$19.6 billion by 2020 Global revenues by opportunity pool will breakdown to: Carbon trading: 8.2 Risk products: 7.4 Biomass and biofuels derivatives: 1.4 Biofuels, solar, wind and clean coal adding up to another: 4.4Banking revenues in key climate change- derived sectors are conservatively expected to grow to�$19.6 billion by 2020 Global revenues by opportunity pool will breakdown to: Carbon trading: 8.2 Risk products: 7.4 Biomass and biofuels derivatives: 1.4 Biofuels, solar, wind and clean coal adding up to another: 4.4

22. 22 For banks, opportunity exists across the full range of constituents. What about for you? Where is the value for each segment? We all need to answer these questions.For banks, opportunity exists across the full range of constituents. What about for you? Where is the value for each segment? We all need to answer these questions.

23. 23 What will the world look like in the next 5-10 years and what are the implications? I hope that it will be scenario #2 but I�m inclined to we will see something in between 1 and 2 where there steps forward and steps backwards. That being said, the ship has sailed and the US needs to get on board. Europe is fully committed. China is looking to corner the market on renewable energy production with India engaging and developing their own markets.I hope that it will be scenario #2 but I�m inclined to we will see something in between 1 and 2 where there steps forward and steps backwards. That being said, the ship has sailed and the US needs to get on board. Europe is fully committed. China is looking to corner the market on renewable energy production with India engaging and developing their own markets.

24. 24 Final Thoughts and Questions Turn attention from eliminating �negatives� to creating positives Move beyond eliminating non-value to creating new value Not just market-based solutions, but see the market itself as a solution Sustainability in not just removing the business risk Sustainability is an opportunity for business A new and complex environmental landscape is emerging � Both efforts to mitigate carbon emissions as well as adaptation efforts, which deal with the impacts of climate change, will drive new markets or change existing ones. Impacts will cross Global Markets � I urge you to get engaged. A new and complex environmental landscape is emerging � Both efforts to mitigate carbon emissions as well as adaptation efforts, which deal with the impacts of climate change, will drive new markets or change existing ones. Impacts will cross Global Markets � I urge you to get engaged.