U H Net Impact Presentation

57
Green Business Green Business Rising Rising Andrea Dean www.andreadean.com

Transcript of U H Net Impact Presentation

Green Business RisingGreen Business RisingAndrea Deanwww.andreadean.com

“Most Likely to Champion the

Underdog”

GreenMBA’s

Source: Net Impact, 2008 Business as UnUsual Guide

Source: Beyond Grey Pinstripes 2007-2008 The Aspen Institute

"The theme of environmental consciousness is the DNA of this campus and goes back 50 years. Sustainability is not an add-on but is integrated throughout our curriculum”

Dean Robert SullivanRady School of Management at the

University of California at San Diego

GreenBusiness

SustainableBusiness

Triple Bottom

Line

Sustainability

CorporateSocial

Responsibility

Terminology

What is Sustainability?"Humanity has the ability to make development

sustainable--to ensure that it meets the needs of the present without compromising the ability of future generations to meet their own needs."

Brundtland Commission Report

“Sustainability consists of harmonizing the ecological, social, and economic aspects of human activity in such a way that economic growth is consistent with long-term ecological activity.”

Brian and Mary Nattrass, Consultants and Authors of The Natural Step for Business

Defining Green Business

Green businesses operate in ways that solve, rather than cause, both environmental and social problems. 

These businesses adopt principles, policies, and practices that improve the quality of life for their customers, their employees, communities, and the environment.

Source: www.coopamerica.org

The Natural Step• A shared science- and systems-

based definition for sustainability

• A decision-making framework and process to help organizations and communities plan for sustainability

• A compass to help us know if we’re moving in the right direction

Communicating theBUSINESS CA$E for Sustainability

Bob Willard [email protected] www.sustainabilityadvantage.com

Why Green Business?Bob Willard on The Business Case for Sustainability

Sustainability 3-Legged StoolSustainability

Economic LegGood JobsFair wages

SecurityInfrastructure

Fair Trade

Social Leg Working conditions

Health servicesEducation services

Community & CultureSocial justice

Environmental Leg0 Pollution & WasteRenewable Energy

ConservationRestoration

Quality of Life / Genuine Wealth / Genuine ProgressSource: Bob Willard- The Business Case for Sustainability

Smart Business 3-Legged Stool

Asset Management

FinancialCapital

BuiltCapital

NaturalCapital

Human Capital

Social Capital

Sustainable Value CreationSource: Bob WillardSource: Bob Willard- The Business Case for Sustainability

Company Value “Iceberg”

Balance Sheet

Market CapitalizationSource: Bob Willard- The Business Case for Sustainability

Company Value “Iceberg”

Intangibles - NonfinancialsReputation - Brand ImageStakeholder Relationships

TangiblesFinancials

Market Capitalization

Balance Sheet

Source: Bob Willard- The Business Case for Sustainability

Company Value “Iceberg”: 1981

Intangibles / Nonfinancials / Reputation

TangiblesFinancials

Market Capitalization

Balance Sheet

83%

17%

Arthur D. Little, The Business Case for Corporate Citizenship , 2002Source: Bob Willard- The Business Case for Sustainability

Company Value “Iceberg”: 1998

IntangiblesNonfinancials

Reputation

TangiblesFinancials

29%

71%

Arthur D. Little, The Business Case for Corporate Citizenship , 2002Source: Bob Willard- The Business Case for Sustainability

Sea of Demanding Stakeholders

Nonfinancials / Reputation

Financials

Employees

Customers

Media

Economists

Scientists

NGOs

Competitors

Global Markets

Governments

Insurers

The Public Investors

Banks

Source: Bob Willard- The Business Case for Sustainability

Two-Part Business Case

Nonfinancials / Reputation

Financials

Employees

Customers

Media

Economists

Scientists

NGOs

Competitors

Global Markets

Governments

Insurers

The Public Investors

Banks

Source: Bob Willard- The Business Case for Sustainability

Mega-Issue Storm Clouds

Employees

Customers

Media

Economists

Scientists

NGOs

Competitors

Global Markets

Governments

Insurers

The Public Investors

Banks

Water CrisisPandemics

Erosion of Trust

Pollution & Health

Nonfinancials / Reputation

Wealth Chasm

Food Crisis

Source: Bob Willard- The Business Case for Sustainability

7 Benefit Areas1. Reduced recruiting costs2. Reduced attrition costs

3. Increased employee productivity

4. Reduced expenses in manufacturing5. Reduced expenses at commercial sites

6. Increased revenue - market share7. Lower insurance & borrowing costs

… yielding a profit increase of +38%

Usual

focus

REPUTATIONSource: Bob Willard- The Business Case for Sustainability

One More Goal … or an Enabling Strategy?

Innovation

Speed to market

New markets

Talent wars

Productivity

Motivation

Brand image

Managing risks

Compliance

Supply security

Profit

Share price

Growth

Revenue

Customer care

Expense savings

Competition

Market share

Leadership

Governance

Source: Bob Willard- The Business Case for Sustainability

The Natural Step Framework

Source: The Natural Step & Alex Frost, Hawaii County Resource Center

The Natural Step• Does your organization have a definition of

sustainability?

• What is, with reference to this definition, your gap to sustainability?

• What are you doing, at the strategic level of the organization, to bridge that gap?

Source: The Natural Step

Natural Step- Key Concepts

Source: The Natural Step & Alex Frost, Hawaii County Resource Center

The Funnel

Source: The Natural Step & Alex Frost, Hawaii County Resource Center

Four System Conditions

Source: The Natural Step & Alex Frost, Hawaii County Resource Center

Backcasting

Source: The Natural Step & Alex Frost, Hawaii County Resource Center

A-B-C-D + E

Source: The Natural Step & Alex Frost, Hawaii County Resource Center

Choose a Focus Area.

B- Baseline Analysis

Baseline Analysis Worksheet

Mystery Environmentalist…MYSTERY COMPANY’S environmental goals

are simple and straightforward:• to be supplied 100 percent by renewable

energy;• to create zero waste;• and to sell products that sustain our natural

resources and the environment.

Today’s Environmentalists• Microsoft• Whole Foods• Kellogg’s• McDonalds• Home Depot

• Disney• UPS• Coca-Cola• Starbucks• PepsiCo.

Source: Strategies for a Green Economy, Joel Makower

What About the Economy?In 16 of the 18 industries studied, companies

committed to sustainability outperformed industry averages by 15% over the six months from May through November 2008. 

From a market capitalization perspective, this superior performance averages out to $650 million in protected market capitalization per company.

Source: A.T. Kearney, Inc, Green Winners: The Performance of Sustainability-focused Companies in  the Financial Crisis

What About the Economy?“Our study indicates that the market rewards specific

companies,” said Dr. Daniel Mahler, author of the study.  “We find common characteristics among the leading companies that show that sustainability goes far beyond the narrow definition of being environmentally friendly.” 

These characteristics include:• A focus on long-term strategy, not just short-term gains• Strong corporate governance• Sound risk-management practices• A history of investment in green innovation

Source: A.T. Kearney, Inc, Green Winners: The Performance of Sustainability-focused Companies in  the Financial Crisis

Results?

Source: © Greener World Media, Inc (greenbiz.com)

Bad News

•Greenhouse gas emissions are up

•Telecommuting is down

•E-Waste is up

Good News

•Cleantech investments up

•Clean-Energy Patents up

•Energy Efficiency up

Results?

Source: © Greener World Media, Inc (greenbiz.com)

Good News

•Paper Use & Recycling

Staying Afloat

•Green Jobs

•Packaging Intensity

•Toxic Emissions & Toxics in Manufacturing

Platform or Passion?“One oft-quoted study of 1500 business school

graduates over a twenty-year period shows that 1245 (83%) went right for the money (platform) and 255 (17%) went for their passion. After twenty years, there were 101 multi-millionaires. One took the "platform" track; the other 100 took the "passion" track.”

Dr. Mark Albion, Co-Founder of Net Impact

Green Jobs

According to Net Impact:• The number of “sustainability” jobs posted on the

two leading business jobs sites are growing at a rate of 37% per year.

• Who is pushing this growth? Disney, Nike and Starbucks.

Source: GreenBiz.com, Jan 16, 2008, CSR Jobs Rank High for Newly Minted MBAs: Report

Talent Risks40% of MBA grads rated CSR as a an “extremely” or

“very” important company reputation measure when job hunting (Hill & Knowlton Jan 08)

92% of students and entry-level hires seek an environmentally friendly company

(MonsterTRAK.com survey, Nov 07)

83% of employees in G7 countries say company’s positive CSR reputation increases their loyalty

(GlobeScan 2006)

83% of employees in G7 countries say company’s positive CSR reputation increases their motivation (GlobeScan 2006)

Source: Bob Willard- The Business Case for Sustainability

The Other Triple Bottom Line

• Passion• Profession• Profits

What Am I Doing?

• Individual & Team Coaching• Green Business Coaching Group• Webinars• Blog / Podcast / Writing• Business/Community Projects• Sustainability Strategic Planning using The

Natural Step

Stay in Touch

greenhawaii.comkanuhawaii.organdreadean.com/blog

Coaching, Consulting & Training

What are you taking away today?