copyright (c) 2008, jeana wirtenberg & associates, llc transitioning to green tm : a world of...

Copyright (c) 2008, Jeana Wirtenberg & Associates, LLC

Transitioning to Greentm:

A World of Possibilities

Jeana Wirtenberg, Ph.D. Jeana Wirtenberg, Ph.D.

FWA Scholarship Reunion: Sustaining Eco-Savvy Women

January 5, 2009


What Is Sustainability?

“Meeting the needs of the present without compromising the ability of future generations to meet their own needs.”

Our Common Future, UN Brundtland Report, 1987

“A company’s ability to achieve its business goals and increase long-term shareholder value by integrating economic, environmental and social opportunities into its business strategies.”

“Symposium on Sustainability – Profiles in Leadership,” New York, October 2001


What Is Sustainability?

Key aspect:

Triple Bottom Line

• Social

• Environmental

• Economic

Viable

Bearable

Equitable


Our Purpose for Today

1. The urgent need to move to a new business model based on the triple bottom line

2. The many challenges and opportunities in transitioning to a green economy

3. How you can make a difference – personally and in your organizations


Another Way of Looking at Our Purpose for Today…

From To

Hopeless Inspired

Helpless Engaged

Immobilized In Action


Global sustainability issues impacting all organizations and people in the world

Social Justice

• 1 in 5 children gets no schooling

• 9.1 billion by 2050,

biggest increase in developing countries


Global sustainability issues impacting all organizations and people in the world

Environmental Sustainability

• Global warming and climate change - Rising sea levels

• “The Death of Birth”

• Fresh water shortages

• Ecological Footprint


Ecological Footprint Tool: Global Applications

Ecological Creditors and Ecological Debtors

• Greens are Ecological Reserves – Dark equals > 50% of biocapacity– Light equals < 50% of biocapacity

• Reds are Ecological Deficit– Light equals < 50% of biocapacity– Dark equals > 50% of biocapacity

http://footprintnetwork.org/gfn_sub.php?content=creditor_debtor


Economic Sustainability

“The major challenge—and opportunity—of our time is to create a form of commerce that uplifts the entire human community of 6.5 billion and does so in a way that respects both natural and cultural diversity… And business can—and must—lead the way.”

Stuart L. Hart (2007)


Looking Through a New Economic and Financial Lens

• Rethinking and redefining GDP– The need to include the 5 capitals:

• Human• Social• Natural• Manufactured• Financial

• Environmental, social, and governance = new reference point for financial analysis and decision-making– UN Principles of Responsible Investment

• To “better align investors with the broader objectives of society”


Looking Through a New Economic and Financial Lens

• New market creation– Bottom of the Pyramid protocol (Hart, 2008)

• Opening Up• Building the Ecosystem• Enterprise Creation

– Indigenous business development• Engagement of communities in sustainable

development and growth of enterprise• Innovation of existing processes• Development of micro-enterprise• Authentic indigenous solutions


Guiding questions

1.1. What concerns you most?What concerns you most?

2.2. What are the things you can do to impact What are the things you can do to impact sustainability?sustainability?

3.3. Call to action –Call to action –What’s your commitment?What’s your commitment?

What are you willing to do to make an impact What are you willing to do to make an impact personally and in your organizations?personally and in your organizations?

The SUSTAINABILITY PYRAMID: Qualities Associated with Highly Successful Sustainability Strategies

COLLABORATIVEINTEGRATION

•Holistic Integration •Broad Stakeholder

Engagement

TRACTION •Alignment of Hard & Soft Organization

Systems•Metrics – Measurement & Reporting

FOUNDATION •Strategic Centrality

•Senior Management Support•Deeply Embedded Values

The Triple Bottom LineSUSTAINABLE ENTERPRISE

©Institute for Sustainable Enterprise, 2006

2007 AMA Sustainability Survey

AMA Global Sustainability Study

• 1,365 survey respondents from around the world

• 9 interviews with companies known for their excellence in sustainability

United States

62.1Asia11.7

Europe

10.6

Canada

5.5

Mid.East/Africa

5.2

Latin America

4.9


Business ethics and integrity

Safe and healthy work environment

Affordable quality health care

Well-being of employees

Clean water

Importance of Sustainability Issues

You Personally

4.8

4.7

4.7

4.6

4.4

Your Company

4.5

4.3

4.0

3.9

3.7

Rank

1 2

3

4

5

13

14

15

16

17

Climate change

Epidemics

Diverse ecosystem

Open immigration

World population growth

3.9

3.8

3.8

3.4

2.4

3.1

3.4

3.1

3.1

2.9

Mean response on a 5-point scale


Ensuring workers’ health and safety

Increasing workforce productivity

Improving image with shareholders and public

Effectively addressing regulatory restrictions

Enhancing innovation

Meeting expectations of investors and lenders

Attracting and retaining diverse top talent

Improving employee morale and engagement

Addressing challenges of the healthcare system

Providing goods / services that are good for the world

Today

1 2

3

4

5

6

7

8

9

10

In 10 Years

4 5

1

6

2

7

3

8

9

11

Factors Driving Key Business Decisions Today and in 10 Years

Rank out of 25 factors


Lack of demand from consumers and customers

Lack of demand from managers and employees

Lack of awareness and understanding

Lack of standardized metrics or benchmarks

Lack of specific ideas on what to do

Lack of demand from shareholders and investors

Lack of demand from suppliers

Unclear or weak business case

Lack of demand from community

Lack of support from senior leaders

Rank

1 2

3

4

5

6

7

8

9

10

Mean

3.13

3.13

3.11

3.10

3.08

3.04

2.99

2.97

2.93

2.92

Factors Hindering Your Company from Moving toward Sustainability

Mean response on a 5-point scale


Degree to Which Companies Value and Have the Qualities of Sustainable Enterprises

•2.8•3.9•Organizational integration

•2.9•4.0•Systems alignment

•2.9•3.9•Stakeholder engagement

•2.9•3.9•Metrics

•3.1•4.2•Values

•3.2•4.1•Centrality to business strategy

•3.3•4.4•Top management support

•Extent Company

Has These Qualities*

•Importance to Building a

Sustainable Enterprise*

•Qualities of a Sustainable Enterprise

*Mean responses on a 5-point scale, where 1 = not at all and 5 = to a very great extent.


Top 12 Most Commonly Used Sustainability-Related Practices

• To what extent does your company have practices in place to do the following?

Mean Responses• Ensure the health and safety of employees 4.02• Ensure accountability for ethics at all levels 3.95• Engage collaboratively with community and non-governmental groups 3.47• Support employees in balancing work and life activities 3.35• Encourage employee volunteerism 3.29• Involve employees in decisions that affect them 3.28• Provide employee training and development related to sustainability 3.26• Reduce waste materials 3.14• Highlight our commitment to sustainability in our brand 3.12• Improve energy efficiency 3.06• Work with suppliers to strengthen sustainability practices 2.95• Get groups across organization that are working on sustainability-related • initiatives to work more closely together 2.85• *On a 5-point scale, where 1 = not at all and 5 = to a very great extent.


Implementing Sustainability Strategies and Seeing Measurable Benefits

•2.88•3.19•2.56•... is your organization seeing measurable benefits from sustainability initiatives?

•2.99•3.33•2.65•...do you believe that your organization is implementing a sustainability strategy?

•All •Highest

Performers•Lowest

Performers•To what extent...


Qualities of a State-of-the-Art Sustainable Enterprise

•Long-term, collaborative, “holistic” or systems-oriented mindset •Pursues a “triple bottom linetriple bottom line””•GGenerates or regenerates planet’s five capital stocks•Ethics-based business principles & sound corporate governance


Qualities of a State-of-the-Art Sustainable Enterprise

continued

• Committed to transparency and accountability. • Gives stakeholders opportunities to participate in decisions that affect them• Uses its influence to promote meaningful systemic change among its peers, within its neighboring communities, and throughout its supply chain.

Six Dimensions of Mental ModelsSix Dimensions of Mental ModelsShort-term: Focus on deadlines, Immediate priorities, Sense of urgency

Time Orientation

Long-term: Vision and strategies, Potentials, Opportunities

Reactive: External drives, Prevailing rules and procedures

Focus of ResponsivenessCreative: Taking initiative, New approaches, Internal drives

Local: Focus on self or Immediate group, Competition Focus of Attention

Global: Whole organization, Inclusive, Ecumenical, Larger community

Separation: Either / Or, Specialization Prevailing Logic

Systems: Both-And, Holistic, Interrelationships

Systems: Both-And, Holistic, Interrelationships Problem Consideration

Learning: Understanding, Building on all types of experience

Doing / Having: Materialism, Greed, Cost effectiveness, Financial performance, Quantitative growth

Life Orientation

Being: Having enough, Self-realization, “Greater good,” Intangibles valued, Qualitative growth

Source: Copyright © 2006, John D. Adams. Used with permission.


The Importance of Employee The Importance of Employee Engagement in SustainabilityEngagement in Sustainability

• Employee Engagement critical to sustainability according to managers

• 96% in employee survey prefer working for “successful company that also aspires to do good” (Willard, 2002)

• Companies with sustainability with sustainability record enjoy recruiting & retention record enjoy recruiting & retention advantage (advantage (Wirtenberg, Harmon, Russell, & Fairfield, 2007)


Emerging Careers and Career Emerging Careers and Career Paths in Green EconomyPaths in Green Economy

• Microfinance in US and Developing Countries, especially for women owned businesses

• Carbon Trading, Reporting and transparency

• Socially Responsible Investing, Clean-tech investing and patents

• Corporate Social Responsibility, Corporate Citizenship

• Chief Sustainability Officers, Chief Responsibility Officers

• Environmental. Health & Safety (EH&S)

• Green Buildings (LEED)

• Greening Supply Chains

• Green Marketing - Sustainability Communications, Branding, and PR

• Human Resources, Organization Development & Change

• Greening every industry at all stages of life cycle:

o Extraction o Production o Distribution o Consumption o Disposal


Three Scenarios for the Future of Sustainability

• Scenario One: Things fall apart Organizations give up on trying to be sustainable. Businesses just want to survive in

an increasingly anarchic world, plagued by global war for natural resources, especially oil and water.

• Scenario Two: Muddling toward sustainability At best a mixed bag and, at worst, an utter mess. Countries try to make global

agreements on everything: fisheries, global warming gases, water conservation, pandemics, global poverty. While these have symbolic value, they have no real teeth and are ultimately ineffective.

• Scenario Three: A Global Sustainability Culture A global sustainability culture has taken root. A cultural “tipping point” has been

reached. Factors shaping it were alarming scientific findings, changes in climate patterns, geopolitical conflicts, global media networks, innovations in the marketplace, success of “green” business. The confluence of these factors creates a “preservation mindset” or “global sustainability culture.”


Conclusion• Today, the future remains uncertain…• Much depends on whether

– Business, government, NGO, academic leaders and managers in general, and

– High-performing companies, government, and industry leaders in particular,

continue to gain greater awareness of sustainability and choose to adopt sustainability-related values, strategies, principles, and practices.


Call to action –Call to action –• What’s your commitment?What’s your commitment?• What are you willing to do to make an What are you willing to do to make an

impact personally and in your impact personally and in your organizations?organizations?

copyright (c) 2008, jeana wirtenberg & associates, llc transitioning to green tm : a world of...

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