Green Services Opportunities

1. Green Services Opportunities Will O’Brien June 2011

2. Topics • Background • Definitions & Models • Sustainability: Embracers Seize the Advantage • Sustainability is The Key Driver of Innovation • Market Trends and Green Service/Career Opportunities • New (Green) Service Development Process • Learn More…

3. Background • MBA, University of Albany • Juris Doctor, Suffolk University Law School • @40 years in Management and Consulting • Teaching since 2002 • Executive-in-Residence, Clark University • Lecturer, Johns Hopkins University • Director, Worcester Sustainable Business Leader Program • Research Interests: • Business and Environmental Sustainability • Change Management • Entrepreneurship • Project Management • Websites: www.greenprof.org www.sustainablebusinessleader.org/

4. "What we take for granted may not be here for our children." - Al Gore

5. Sustainable Development Sustainable development seeks to meet the needs and aspirations of the present without compromising the ability to meet those of the future. Far from requiring the cessation of economic growth, it recognizes that the problems of poverty and underdevelopment cannot be solved unless we have a new era of growth in which the developing countries play a large role and reap large benefits. Our Common Future, 1987 The Brundtland Commission (UN World Commission on Environment & Development)

6. Carbon Footprint Source: New Zealand Business Council for Sustainable Development

7. Environmental Footprint • An environmental footprint is a measure of the amount of resources consumed and the amount of pollution; e.g., green house gas and waste created by an entity and by the firms that serve the entity, usually summarized by the equivalent are of land needed to assimilate these impacts. Source: “Measuring Environmental Footprint: A Financial Services Industry Case Study”, 2008, UNC

8. Triple Bottom Line The triple bottom line (abbreviated as "TBL" or "3BL", and also known as "people, planet, profit" or "the three pillars"[1]) captures an expanded spectrum of values and criteria for measuring organizational (and societal) success: economic, ecological and social. (Wikipedia)

9. Sustainability: The Embracers Seize Advantage! • Boston Consulting Group & MIT Sloan Management Review conduct survey about corporate sustainability - 2010 • 2009: 25% of respondents increasing commitment to sustainability • 2010: 59% of respondents increasing commitment to sustainability • Growing enthusiasm for sustainability-driven management

10. Top Sustainability Efforts • Waste reduction • Energy efficiency • Example: Johnson & Johnson: spent $187 million in energy reduction projects. Expect IRR of 19%, approximate 247,000 megawatts of energy per year.

11. Embracers vs. Laggards • Survey discovers two groups of businesses: • Embracers = Leaders in sustainability • Sustainability ALREADY at core of business • Laggards = Cautious adopters • Moving towards a sustainable core

12. Who are Sustainability “Embracers?” • Large global or regional companies (workforce > 10,000) • Found in resource-intensive industries • Can be either service sector or product industries • Product Industries more likely to be embracers

13. Financial Services Companies • Hong /Shanghai Bank Corporation (HSBC): www.hsbc.com/1/2/sustainability • Bank of America: http://environment.bankofamerica.com/commitment/our-commitment.html

14. The Embracer’s Philosophy • Sustainability strategies are necessary to be competitive • 70% believe they are outperforming competitors • Links must be made between sustainability and profitability. Move beyond “cost cutting” and “risk management.” • i.e.. focus on increased margins, greater market share, more innovation/blue ocean creation, access to new markets, etc. • Make sustainability an insider activity

15. Seven Practices of Embracers: • Move early — even if information is incomplete • Balance broad, long-term vision with projects offering concrete, near-term “wins” • Drive sustainability top-down and bottom-up • Aggressively de-silo sustainability — integrating it throughout company operations. • Measure everything (and if ways of measuring something don’t exist, start inventing them). • Value intangible benefits seriously. • Try to be authentic and transparent — internally and externally.

16. Challenges for Embracers: • Sustainability not as easy as it appears • How to choose metrics? • How to quantify the effects of sustainability strategies on operations? • On brand reputation? • On company name? • On consumer offerings?

17. Embracers vs. Laggards • Both embracers and cautious adopters see the benefits of strategies such as improved resource efficiency and waste management. • Both recognize the brand-building benefits of developing a reputation for being sustainability driven. • Embracers are more aggressive in sustainability spending, but cautious adopters are increasing their commitments at a faster rate.

18. Making or Breaking a Brand • Customers a HUGE driver of sustainability efforts. • Sustainability can help build brand image. • Can hurt it too. • Shell fell from 5th to seventh in 2010, possibly as a result of the BP oil spill.

19. Why go Green? Five Mega-Trends: • Public policy • Investment • Employees • Customers • Accountability

20. Sustainability Drives Innovation

21. Sustainability Drives Innovation Stages: #1 Viewing compliance as an opportunity #2 Making value chains sustainable #3 Designing sustainable products and services #4 Creating “next-practice “platforms “ Why Sustainability is Now a Key Driver of Innovation”, Harvard Business Review, 2009

22. Market Trends & Opportunities

23. Carbon Footprint Labeling Jan. 23, 2007 Tesco, the largest supermarket chain in Britain, has announced that it will begin labeling all 70,000 products on its shelves with the amount of carbon generated from the production, transport and consumption of those items.

24. Carbon Footprint Labeling • Tesco in UK www.tesco.com/greenerliving/greener_tesco/faqs/qa_carbon_footprint_and_labelling.page http://www.terrapass.com/blog/posts/british-superma • Wal-Mart: Process for Greening Supply Chain http://greenedgellc.com/posts/walmarts-process-for-greening-its-supply-chain • Strategic Sustainability Consulting www.sustainabilityconsulting.com/walmart

25. Business Certification • Institute for Green Business Certification www.gbcertified.com/11-Home.asp • Green Business Bureau www.gbb.org/ • Sustainable Business Leader Program (SBLP) www.sustainablebusinessleader.org Note: looking for interns for Worcester SBLP

26. World Energy Solutions www.worldenergy.com/hello-2/

27. Sustainability Consulting • HP: Energy Solution & Sustainability Management http://www8.hp.com/us/en/solutions/solutions-detail.html?compURI=tcm:245-300963 • Sustainability Consulting Services including energy audits, report audits:    - Deloitte     - Accenture     - KPMG     - PWC     - GreenerU, Inc. • Environmental Resources Management (ERM) http://erm.com/

28. New Service Development Process

29. Learn more….. • Clark GSOM courses: • Corporate Strategy & Sustainability (tbd) • Eco-entrepreneurship (tbd) • Energy Management – SP12 • Finance & Sustainability (tbd) • Green Business Management (UG)– SP12 • Green Marketing – FA11 • Green Supply Chain Management (tbd) • Sustainability Consulting Projects – FA11 • Net Impact @Clark: Kate Hanley, Brad McNamara • Sustainability Leaders Speaker Series – AY2011-12 • Websites: • www.greenprof.org • www.sustainablebusinessleader.org