From Paul Hawken’s Commencement Address at Portland State 2010

1. From Paul Hawken’s Commencement Address at Portland State 2010 “…If you look at the science about what is happening on earth and aren’t pessimistic, you don’t understand data. …But if you meet the people who are working to restore this earth and create a new business model, and you aren’t optimistic, you haven’t got a pulse.”

2. Sustainable Capitalism: The Triple Bottom Line Lisa Swallow, CPA CMA MSPresented to Women’s Empowerment Project April 2012

3. What is Sustainability? “Meeting the needs of the present without compromising the ability of future generations to meet their needs” --1987 UN Brundlandt Report Sustainability:The possibility that we all flourish forever. -- John Ehrenfeld, International Society for Industrial Ecology

4. Is the Environmental Imperative Nudging Business Towards Sustainability? • All major ecosystems in the world are threatened • Toxic build-up and dispersion • Water tables dangerously low • Dramatic decline in fisheries & coral reefs • Forest depletion • Loss of biodiversity • Climate change “Natural Capital” We’re spending the corpus, should be living off of interest! Life Supporting Resources declining What will our transportation systems look like ? How will we globally continue to feed a burgeoning population ? How will health care be administered? What sorts of materials will we use to produce consumer goods ? What role will technology play? How soon will all our buildings be net zero energy ? What will power our world? What will the biodiversity loss really look like? Will there be enough desalinated water for the world? Consumption of Life Supporting Resources rising

5. Shepard Glacier Glacier National Park, MT 1913 W. C. Alden photo USGS Photographic Library 2005 Blase Reardon photo USGS USGS Repeat Photography Project http://nrmsc.usgs.gov/repeatphoto/

6. Problem with Extreme Business View: Tragedy of Commons • Dilemma – when multiple parties, acting independently and with own self-interest at heart, will ultimately deplete a shared limited resource even when it is clear that it is not in anyone's long-term interest for this to happen Garrett Hardin 1968

7. What’s Different aboutNatural Capitalism What happens to a trust if you live off the interest? What happens if you spend down the corpus? Natural capitalism recognizes and assigns fair market value to ecosystem services – valued at $2 trillion per year and no substitutes And focuses on product design using biomimicry, providing services (not product ownership) and increasing efficiency

8. PROFIT PLANET PEOPLE Triple Bottom Line Businesses increasingly acknowledging new strategy – moving from short term thinking to long term vision

10. Business Case for Sustainability • Enhance revenue - Brand imaging/marketing • Cutting operating costs • Waste • Water • Energy • Renovate rather than build • Increasing interest in investment world in socially responsible firms • SRI - $3 trillion (see Dow Jones Sustainability Index) • Enhanced EE recruiting/retention • Risk mitigation/reduction of exposure • Reduced costs of capital Eco-efficiencies

11. Why is TBL Good for Business? • Innovation opportunities for the impending green economy are limitless • Smart grids • Distributed energy • Hydrogen infrastructure • Water desalinization and purification • New consumer goods • Renewable energy • Energy efficiency • Green building products • New financial services and markets • Alternative transportation models • New manufacturing processes • Consumers are rewarding green businesses • Saturation in many traditional markets • Fastest growing markets are green “Green Shoppers 2009” Report conducted by Deloitte & Touche

12. 3 Driving Trends Behind Thriving Market for Green Goods/Services Number One: Rise of the “conscious consumer” True Blues Sprouts Grousers Basic Browns Source: Natural Marketing Institute “NMI’s 23009 Consumer Segmentation Model”

13. What else? Number Two: Availability of information/transparency Very easy to access info on companies’ behavior and product attributes based on interest – what are “green products”? • Made and/or sold locally • Recycled and/or recyclable • Indigenous/artesian crafted • Fair trade • Toxin free • Organic • Sweatshop free • Produced with green energy Study after study showing increasing blending of values and purchasing

14. And if That’s Not Compelling Enough ”The Consumer Society” is transforming towards the “Simple Society” Byproducts of materialist society weighs on us • Explosion of debt • Migration of jobs overseas • Staggering amount of waste created by disposable lifestyle All this leads towards more responsible and value driven purchasing. Consumer interested in authenticity & responsible supply chain practices

15. 3 Recent Reports that Energize the Paradigm Shift • GreenBiz Fourth Annual • MIT Sloan Management Review & and Boston Consulting Group -2011 research report • Greening of Corporate America

16. 2009 Greening Corporate America

17. Specifics of Green Business • Change product development • Look at fastest growing markets • Practice corporate social responsibility • Craft new partners • Establish benchmarks and measure progress

18. Product Design with Purpose • Design that complies with TNS • Sustainable Design • Green Materials • Framework that require mindful design: • Biomimicry • Cradle to Cradle • Design for the Environment

19. Biomimicry • From Bios (life) + Memesis (to imitate) – Janine Benyus • Product design framework – emulating 3.8 billion years of evolution - species don’t use up their host organism • What’s flourishing on the planet today are the best ideas - those that perform well in context, while economizing on energy and materials

20. Using Nature’s Best Ideas

21. Fastest Growing Markets • Organics/local vs. corporate food • Green building • 2005 - green building accounted for 2% of construction • 2008 - 15-20% of new construction • Amount equivalent to $50b market • Naturopathy/alternative medicines • Early adopters (solar) going mainstream • Natural fibers (bamboo, hemp, jute, etc) • Sustainable home furnishings • Recycled-content paper products

22. Vast Opportunities Stu Hart – “Capitalism at the Crossroads” • BoP 1.0 - Large corporations will experience growth solving the world’s problems for the poorest 4 billion people • Saturation in existing markets • “Trickle-up opportunity” • Smaller packages, different distribution model • Sell service (pest control/house cleaning) • Nairobi – buy ‘by the squirt’ • “Next Generation BoP Strategies” • BoP 2.0 • Partner with local entrepreneurs to build capacity • S G Johnson – service and flow model

23. Enhancing Social Justice in Business • Business concerns: • Employee health (down supply chain), retention/productivity, consumer health, community prosperity • Purchasing policies (Fair Trade, Sweatshop-Free) • Many office greening maneuvers (daylighting, toxin free, etc.) will enhance employees’ worklife) • Address commuting issues • Green HR policies

24. Partnerships Add to Capacity • Many MNCs looking to team up with ecological experts • Coca-Cola employing ecologists to help analyze future projects’ biodiversity impacts • Dow Chemical partnered with TNC to add ecosystem costs/benefits to business model • City of Sao Paulo collaborating with WWF to run drinking water project – analyzing effect of logging, ranching, ag on water quality/wildlife Andrew Liveris, CEO "This collaboration is designed to help us innovate new approaches to critical world challenges while demonstrating that environmental conservation is not just good for nature - it is good for business”

25. Establish Benchmarks & Measure Progress “What gets measured, gets managed” More detail when looking at GRI tomorrow New metrics emerging – be transparent! • CO2 e per … revenue dollar or employee or per sq. ft. of facility space • % of recycled materials • Solid waste measurements • Fair trade-certified product % • Embodied energy (LCA) • Embodied water • Social footprint • Sustainability Balanced Scorecard

26. The sustainability crisis cannot be solved by the same kind of education that helped create it. --David Orr