bob willard [email protected] the business ca $ e for the “sustainability imperative”...
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Bob Willard [email protected] www.sustainabilityadvantage.com
The Business Ca$e for the
“Sustainability Imperative”
Learning for a Sustainable Future
Annual Dinner
TorontoMay 18, 2010
The “Sustainability Megatrend”
David A. Lubin and Daniel C. Esty , “The Sustainability Imperative,” HBR May 2010
Megatrend: “A fundamental shift in the competitive landscape that creates inescapable threats and game-changing opportunities ...
profoundly affects companies’ competitiveness and even their survival.”
Over the last 10 years, the sustainability imperative has emerged.
Environmental issues have steadily encroached on businesses’ capacity to create value for customers,
shareholders, and other stakeholders …magnified by escalating public and governmental concern about climate change, industrial pollution, food safety, and natural resource depletion, among other issues.”
Sustainability Drivers
Siemens / McGraw-Hill Construction presentation about the Greening of America Corporate SmartMarket Report, Greenbuild, Nov. 2009
C-suite survey of 203 large U.S. enterprises, Feb.-Mar. 2009
Benefits of Sustainability Strategies
Siemens / McGraw-Hill Construction presentation about the Greening of America Corporate SmartMarket Report, Greenbuild, Nov. 2009
C-suite survey of 203 large U.S. enterprises, Feb.-Mar. 2009
The 3 R’s of Justifying Sustainability
RISKS
RESPONSIBILITIES
REWARDS
BUSINESS CASE
+
+
Based on Alan AtKisson, The IRIS Agreement, p. 127
Risks to Financial and Natural Capitals:Big-5 Sustainability Storm Fronts
Poverty and Social Injustice
Species Extinction and Overharvesting
Food and Water Crises
Waste, Toxicity,
and Health
The 3 R’s of Justifying Sustainability
RISKS
RESPONSIBILITIES
REWARDS
BUSINESS CASE
+
+
Based on Alan AtKisson, The IRIS Agreement, p. 127
Risks to Financial and Social Capitals:Stakeholders’ Rising Expectations
Waste, Toxicity, and Health
Poverty and Social Injustice
Species Extinction and Overharvesting
Food and Water Crises
Employees
Customers
Media Economists
(Scientists)
(NGOs)
Competitors
Markets
Governments Insurers
The Public Investors
BanksRisks to Reputation re Corporate Responsibilities
Social license
to operate
The 3 R’s of Justifying Sustainability
RISKS
RESPONSIBILITIES
REWARDS
BUSINESS CASE
+
+
Based on Alan AtKisson, The IRIS Agreement, p. 127
The 3 R’s of Justifying Sustainability
RISKS
RESPONSIBILITIES
REWARDS
BUSINESS CASE
+
+Large
Companies:At least 38%more profit
SME Companies:At least 66%more profit
Potential Profit Increase
1. Reduced recruiting costs
2. Reduced attrition costs
3. Increased employee productivity
4. Eco-efficiencies in manufacturing
5. Eco-efficiencies at commercial sites
6. Increased revenue - market share
7. Lower insurance & borrowing costs
… yielding a profit increase of +38%
-1%
-2%
+10%
-5%
-20%
+5%
-5%
RE
PU
TA
TIO
N
Employee Engagement & CSR
CBSR and Hewitt, “Engaging Employees Through CSR” webinar, Jan 2010
Engagement Drives Business Results
Gallop Consulting, “Employee Engagement” brochure, 2008
The 3 R’s of Justifying Sustainability
RISKS
RESPONSIBILITIES
REWARDS
BUSINESS CASE
+
+
Climate Change &
Energy Crises
Employees
Customers Economists
(Scientists)(NGOs)
Governments
Insurers
Investors
At least 38% to 66% more Profit
In Summary …
Sustainability / CSR is smart business
Enhances social license to operate
Improves employee engagement & productivity
Relevant to existing business priorities
Can protect & enhance company value
Many willing, helpful partners
Opportunity for leadership … by example
Bob Willard [email protected] www.sustainabilityadvantage.com
The Business Ca$e for the
“Sustainability Imperative”
Learning for a Sustainable Future
Annual Dinner
TorontoMay 18, 2010