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Agribusiness Performance: Beyond the bottom line. Can we maximize returns for profit, people, and the planet?. “Green Investing Is Paying Off: Eco-friendly investments, from individual stocks to mutual funds and ETFs, have outperformed the Dow and S&P 500 this year” (11/09). Agribusiness.
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Agribusiness Performance: Beyond the bottom line Can we maximize returns for profit, people, and the planet?
“Green Investing Is Paying Off: Eco-friendly investments, from individual stocks to mutual funds and ETFs, have outperformed the Dow and S&P 500 this year” (11/09)
Agribusiness • Corporate sustainability and responsibility • Corporate sustainability • http://www.winwinpartner.com/Who%20We%20Are/index.html • Dow Jones Sustainability Index • Energy • Pollution management • Environmental stewardship • Workforce development • An investable concept?
GreenAgribusiness Winslow Green Growth Fund 1994-2008 • Green marketing • Winslow Green Growth Fund seeks capital appreciation through environmentally responsible investing. The fund normally invests at least 80% of net assets in equity securities of domestic companies that create products or provide services that offer solutions to environmental problems and promote a healthier environmental future or integrate the principles of waste management, pollution prevention, or efficient use of natural resources into its business practices. • Winslow Management • Top Ten Holdings • 09/30/2010 • First Solar, Inc. Bioexx Specialty Proteins inc American Superconductor Corporation Waterfurnace Renewable Energy Inc Horsehead Holding Corporation Schnitzer Steel Industries, Inc. A Rubicon Technology, Inc. Nalco Holding Company ProLogis Trust Wabtec
Winslow Fund – recession proof? Source: MSNBC.com financial charts, Nov 2011
WHY ARE FIRMS USING GREEN MARKETING? • Organizations perceive environmental marketing to be an opportunity that can be used to achieve its objectives • Organizations believe they have a moral obligation to be more socially responsible • Governmental bodies are forcing firms through legislation to become more responsible • Competitors' environmental activities pressure firms to change their environmental marketing activities • Cost factors associated with waste disposal, or reductions in material usage forces firms to modify their behavior
Some Agribusiness Examples • P-R Farms (CA tree fruits & nuts) • Solar Energy Implementation • Fair Oaks Dairy, Koetsier Farm • Anaerobic digesters • Weyerhaeuser • Recycled packaging • Sustainable products from forests • Weyerhaeuser | Growing Ideas
More interesting examples • Green mountain energy – branding “eco-friendly” electricity • Green Mountain Energy Company • California Energy Company now servicing 7 states • More expensive (5-6%) • Purchase power on-line
What about investments in alternative energy? • Is ethanol going to work? • Subsidies? • Use mandates? • See Terry Kasten’s report
Another example… • Forest Stewardship Council • Integrated Supply Chain Controls • Branding targeted to the green consumer
Values driven supply chain • poulet de Bresse • Label Rouge • Scottish salmon industry • Economic benefits • Tea & Coffee and child labor • http://www.teaandcoffee.net/0102/special2.htm
Social impacts of international marketing • Do food and agribusiness firms have an obligation to developing communities to “get the product right”? • Nestle Infant Formula • Misuse of formula • Promotion impacts on feeding programs in poverty areas – samples, media • World Health Organization (response to protestors) • Nestlé & WHO
Source: The Food Institute Report, Oct 18, 2010, The Packer, Oct 11, 2010
Agribusiness and sustainability:Profits, people, and planet • Relating to an environmentally conscious generation – mixed results in the market • Working with interest groups, technology and supply chains to deliver differentiated products – new value nets • Adapting products and marketing approaches to account for economic and cultural differences
Planning for the McDonald’s Case How does sustainability impact McDs? Is there sound business justification for McDs to pay attention to sustainability for supply? Is McDs too big? Scale dis-economies and sustainability What is your perception of them as a consumer? Are they reaching the LOHAS folks? How does McD’s need to look at profits, people, and planet long term? What conflicts might they expect to emerge? Accounting jargon uses the term ‘viable going concern’ fairly narrowly. Does the definition need to be broadened? McDonalds Brazil
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