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Beyond Energy efficiency How Sustainability Strategies can support your Business Results Nikos Avlonas President CSE (avlonas@cse-net.org). C onfusion about Sustainability and what it Really means at the C-Suite Level and Small Medium Enterprises
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Beyond Energy efficiency How Sustainability Strategies can support your Business Results Nikos Avlonas President CSE(avlonas@cse-net.org)
Confusion about Sustainability and what it Really means at the C-Suite Level and Small Medium Enterprises • Is it related only to Energy Efficiency and Waste reduction? Is it Energy Efficiency part of the operational efficiency anyhow? • Can Sustainability increase stakeholder value?
CSR Benefits Global Warming & impact Leadership needed Our climate is changing. And while the increase in extreme weather we have experienced in New York City and around the world may or may not be the result of it, the risk that it might be should compel all elected leaders to take immediate action. Michael R. Bloomberg ,mayor of New York ,November 1st 2012
CSR Benefits Global Warming & impact An American Prophet in 1997 is not enough ! Americans ride around in cars and trucks will dumb another 180,000 pounds of Carbon Dioxide into the atmosphere and thereby accelerate global warming and hasten the advent of catastrophic flooding in coastal cities like New York Jane Holtz Kay, Book ‘’Asphlat Nation’’ 1997
What Exactly is Sustainability ? Source UN Global Compact Social and Environmental Sustainability can lead to a fundamental transformation of strategies, operations, relationships, corporate culture and identity Energy Efficiency /Cost Savings Carbon emissions reduction Waste Reduction Green Buildings Can energy efficiency or Waste management support your company sustainable growth ?
From Short Term to Long term From Energy efficiency to Stakeholder Value Good Governance Local Community and employee engagement Product responsibility Human Rights in Supply Chain Stakeholders Engagements /Keep them happy Broad strategic benefits including reputation and competitiveness Sustainable growth and risk reduction
Rise of Sustainability A Global issue with different perspectives CHINA /SE ASIA North America Energy reduction/Cost Savings Waste reductions Green Buildings Philanthropy Health and Safety Human Rights Workforce benefits EUROPE All above Good Governance Local Community /Employee engagement Responsible Marketing Product responsibility Human Rights in Supply Chain MIDDLE EAST Local Community engagement Philanthropy
Major Argument for Sustainability The Return on Investment (Business Case) for Sustainability cannot be clearly specified !
Business Case Social & Enviromental Licence to Operate Building Confidence Social Recognition New Market Areas Long-term growth Innovations Minimizing Risk Creating Value for all Stakeholders
Business Case The Return on Investment (Business Case) for Sustainability cannot be clearly specified ! (Carbon Disclosure Leadership Index) with the Global 500 Index. The CDLI includes Siemens, Coca-Cola, Microsoft and many other industry leaders
Investors require Sustainability • 300,000+ data terminals globally • 5,000+ companies and climbing • Sustainability Aspects • Emissions • Energy Consumption • Human Rights • Policies • Board Make-Up
Sustainability is required to do business ! Ripple October 13, 2011 “. . . Microsoft will also encourage all its suppliers to consider doing Sustainability Reporting . . . .”
Leading Sustainability CompaniesWhy not your company or Institute?
CSR Benefits More beneficial to Small Medium Enterprises (SMEs) • Everybody expects from large global organizations to meet Sustainability Criteria. Not from SMEs or Institutes (At least for the moment ! ) • It takes a lot of time and resources to be implemented in large companies ( 3-5 years) Not so much in SMEs • SMEs or Institutes can gain a greater competitive differentiation from Sustainability through Marketing
CSR Benefits Key Sustainability Benefits (Beyond Cost Savings from Energy Reduction ) • EnhancedBrand Value andReputation • Improved Risk and Crisis Management • Workforce Motivation, retention • Good relations with local communities and suppliers • New Market opportunities with Green Consumers (LOHAS) -250 Billion Market • Save up to 20% from your Marketing ,Corporate Communication Investment • Up to 50% less spending in Crisis Communication Management. • Save up to 20% from other HR investments in employee motivation • Increase revenues from new Markets $ Better Long Term Financial performance and Competiveness
CONCLUSIONS Sustainability Strategies has become a very important part of the corporate strategy for organizations that want to be sustainable in the long run .
CONCLUSIONS • Key Questions • Do you have the right perspective and sustainability strategy to increase your opportunities ? • Do you know how to integrate sustainability within your operations ? • Do you know how to increase Stakeholder Value and reduce risks ? Identification of corporate strengths & areas for improvement SUSTAINABILITY (CSR) ASSESSMENT Identification of key Risks and opportunities
CSE Worldwide Activities* Canada Germany CSE Belgium Baltic Countries (Latvia) Romania Great Britain CSE N. America Bulgaria Spain Turkey Luxembourg Japan (Tokyo) Italy Austria India Croatia Chile Singapore CSE Greece Worldwide Activities Include: Projects, Conferences, Workshops and various other activitiesCities marked in redrepresent CSE Offices Egypt CSE Cyprus Saudi Arabia Qatar UAE (Dubai, Abu Dhabi) From commitment to Results
Indicative List of North American Customers Training and Consultancy • AARP • Architect of the Capitol • Baker Hughes • Baxter • Caldwell College • CertainTeed Corporation • Commscope • D&A Development Solutions • Gennomalab • Graylyn Associates, Inc. • Green Commission • Huntsman Corporation • ICF International • Illinois treasury office • KEMA Registered Quality, Inc • Lockheed Martin • Medline • NAR Green Designation Program • Noble Energy Inc • NovaGold Resources Inc. • Oxford Communications • Parsons • Promega Biosciences • SB NOW • Staatsolie Co • Supervalu • Walmart • Wisconsin Energy • United
Certified Sustainability (CSR) Practitioner & Green Buildings • Chicago, May 7th • NY, June 13th • www.cse-net.org