Presentation Transcript

1. Corporate Sustainability

   Ben Goodwin Sean Neal Ryan Davis
2. “Adopting business strategies that meet the needs of the enterprise and its stakeholders today while sustaining the resources, both human and natural, that will be needed in the future”
3. Introduction Corporate Sustainability: creates long-term consumer and employee value by taking into consideration the social, economic, and cultural environment in which the firm operates. Outline of Discussion Concept of sustainability Widespread adoption of sustainable practices Firms seen as leaders in sustainability Controllership function in this initiative
4. Concept of Sustainability Societal trends have been main driver behind sustainable initiatives Triple Bottom Line Profit, People, Planet “…68% of the top 250 companies on the Fortune 500 have embraced triple bottom line public reporting…” (Colbert, 2007)
5. Adoption of Sustainability Stakeholder: includes those individuals or groups that affect or can be affected by the firm or organization Encompasses much more than those that have an ownership in the firm Corporate executives moving away from “we know best” mentality Sometime in the near future we may see sustainability measurements being audited
6. Profitability on the Firm Cost reductions, tax incentives, and operational efficiencies make sustainable practices very appealing to firms Main focus resource and energy efficiency A global survey by KPMG of 378 senior executives states that 27% of 48% of the respondents that said sustainable business practices have increased the bottom line, attribute this to cost reductions achieved in the pursuit of energy efficiency
7. Two Examples of Corp. Sustainability Brewing Industry Retail Industry
8. Anheuser Busch InBev Three areas of foucs: Responsible Drinking Environment Communities
9. Value Chain Renewable Energy Water use Water treatment and return Distribution efficiencies Reuse and Recycling
10. Value Chain (continued) Growers program Energy use Brewmaster Spent grain Packaging Community
11. Responsible Drinking Provide tools for parents ID checking materials Sales training Safe ride home Advertising
12. Community Volunteering Training Charity contributions Diversity
13. Walmart Focuses: Environmental: energy, waste, and products Social: women’s economic empowerment, healthier food, and hunger relief
14. Environmental Energy – renewable energy, fleet efficiency, & equipment capabilities Waste – eliminate landfill waste, reduce waste of shopping bags Products – direct imports & food
15. Social Women’s economic development Healthier food Hunger relief
16. Traditional vs. Modern CFO Traditionally, CFO’s role has been dominated by quantitative, financial information Introduction of unique accounting tools and techniques have slowly changed their role Techniques also helpful with sustainability efforts CFO no longer stuck in traditional role
17. A growing objective Sustainability has evolved rapidly Sustainability activities must be treated the same as financial objectives Objectives and targets of sustainability must be recognized Survey says…
18. Origins of change Sudden changes in CFO responsibilities have had a few origins (1) Shareholder concerns (2) Environmental Legislation
19. 5-step action plan (1) Actively pursue a sustainability and reporting program (2) Ensure that those responsible for sustainability matters do not operate in isolation from the rest of the enterprise (3) Enhance dialogue with shareholders and improve disclosure in key areas (4) Ensure that directors’ skills are relevant to the chief areas of shareholder concerns (5) Consider using nontraditional performance metrics