elevating and integrating sustainability into strategic ......cdp: ghg questionnaire - eastman...
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Elevating and Integrating Sustainability into Strategic Decision Making throughout your Organization
John Latham
elevating and integrating SUSTAINABILITY
into strategic decision making throughout your organization
john latham
John Latham (c) 2009
Understand the Systems and Stakeholders
Investors
Public
understand the pressures from multiple stakeholders...
Employees
Customers
John Latham (c) 2009
understand your value chain...
Suppliers Operations Customers
Inbound Logistics
Outbound Logistics
John Latham (c) 2009
understand the connection between energy and carbon...
understand the connection between energy and carbon...
Energy
Methane
Nitrous Oxide
HFC, PFC, SFs
Other
0 22.5 45 67.5 90
% CO2 Emissions
Source: EIA 2008
understanding fuel type consumption and carbon...
Source: EIA 2008
Petroleum
Coal
Natural Gas
Non-Fossil
0 12.5 25 37.5 50
% Consumption % CO2 Emissions
understanding electricity fuels and carbon...
Source: EIA 2008
Coal
Non-fossil
Natural Gas
Petroleum
0 22.5 45 67.5 90
% Consumption % CO2 Emissions
understand your electricity consumption and CO2...
Suppliers Operations Customers
Inbound Logistics
Outbound Logistics
Mining Transportation Power Production
$$ + CO2 $$ + CO2
John Latham (c) 2009
understand your hydro carbon usage and CO2...
Suppliers Operations Customers
Inbound Logistics
Outbound Logistics
DistributionExploration
Drilling
Production
Refining
$$ + CO2
John Latham (c) 2009
understand your materials usage and CO2...
Suppliers Operations Customers
Inbound Logistics
Outbound Logistics
Logging Transportation Processed Materials
$$ + CO2 $$ + CO2
John Latham (c) 2009
Carbon Disclosure Project
!
www.cdproject.net
carbon disclosure project...
1. Management’s views on the risks and opportunities that climate change presents to the business;
2. Greenhouse gas emissions accounting;
3. Management’s strategy to reduce emissions / minimise risk and capitalise on opportunity; and
4. Corporate governance with regard to climate change.
5. Greenhouse gas emissions split by business category;
6. Management’s engagement with its suppliers; and
7. Greenhouse gas emissions over the lifecycle of goods or services.
Source: http://www.cdproject.net/questionnaire.asp
CDP: GHG Questionnaire - Eastman Kodak...
1 Regulatory risks Yes“EK manufactures product using energy and operates a cogeneration power plant at largest site. Climate change could impact the cost of
energy.”
2 Physical risks Yes “Manufacturing, key office and distribution sites are not expected to be impacted by effects of climate change.”
3 General risks Yes “Potential increases in fuel and carbon costs will have an impact on manufacturing, suppliers and transportation.”
4 Risk management YesReduced energy and GHG emissions by 36% during the 2002-2007
timeframe vs. goals of 20%. Member of: US EPA Climate Leaders, CA Climate Action Registry, Climate Registry, Chicago Climate Exchange. “
5 Reduction plan Yes20% worldwide absolute GHG emissions reduction by 2008 using
2002 as the baseline year through energy efficiency and consolidation of operations.
6 Investment Yes $10 million from 2002 to 2007.
7 Savings achieved Yes Cumulative energy savings from 2002 to 2007 due to reduction efforts has been $68M.
8 Org Responsibilities YesCorporate Responsibility and Governance Committee of the Board of Directors. The Environmental Council, a group of senior execs, creates
long-term direction and oversight of environmental policy.
Source: CDP6 Greenhouse Gas Emissions Questionnaire - Eastman Kodak
Develop Strategies
swot matrix and analysis...
Strengths Weaknesses
Opportunities Just Do It! Invest???
Threats Maintain Danger!
value chain energy use and emissions
external pressures
John Latham (c) 2009
three strategic options...
Change the energy and materials sources and supply chain
Change the value chain’s energy and materials usage
Change the organization’s energy and materials waste
John Latham (c) 2009
Wal-Mart Goals - The Big 3...
Powered by 100% Renewable Energy
Sustainable Products - Resources and Environment
Create Zero Waste
“save people money so they can live better”John Latham (c) 2009
goals - value chain v. strategic options...
Suppliers Logistics Operations Customers Employees Investors
Sources
Change design of supplier facilities and processes and sources of
raw materials to use more renewable sources.
Change transportation modes to use
more renewable sources.
Change design of facilities and
processes to use more renewable
sources.
Change design of products and
services to use more renewable
sources.
Engaged in alternative energy and materials projects
Financial impact of alternative energy and materials sources.
Usage
Change design of supplier facilities and processes and sources of
raw materials to use less energy and materials.
Change design of packaging and transportation modes to use
less energy and materials.
Change design of facilities and
processes to use less energy and
materials.
Change design of products and
services to use less energy and
materials.
Increase the usage of low
energy practices (virtual meetings
and work). Engaged in
energy savings projects.
Financial impact of reduced energy and
materials usage.
Waste
Reduce the amount of energy and
materials waste. Increase the amount of recycling.
Reduce the amount of
energy used for transportation and storage of supplies and
materials
Reduce the amount of energy and
materials waste. Increase the amount of recycling.
Reduce the amount of energy and
materials waste. Increase the amount of recycling.
Engaged in waste reduction and
recycling projects.
Financial impact of reduced waste
and recycling.
John Latham (c) 2009
• Identify greatest opportunities based on:
• carbon emissions (example)
• expected reduction in energy usage
• expected reduction of GHG emitted
• financial impact
• estimated cost of initiative
• expected savings
• expected increase in revenue
• risks
determine priorities...
John Latham (c) 2009
Wal-Mart goals (selected)...
• Buildings - 20% increase efficiency by 2012
• Transportation - 25% reduction by 2008
• Waste - 25% reduction in solid waste by 2008
• Products/Sources - All Seafood from Marine Stewardship Council certified by 2010
John Latham (c) 2009
Translate and Take Action
WalMart Initiatives - Sources...
• Coffee - Fair Trade
• Cotton - Organic
• Seafood - Sustainable Sources
• Jewelry - Inherently Unsustainable
www.GreenBiz.com
Measure, Review and Learn
Change v. Improvement
Eastman Kodak results 1997 to 2005 (selected)...
• Emissions of 30 priority chemicals - down 64%
• Methylene chloride emissions - down 79%
• Total manufacturing waste - down 40%
• Water usage - down 47%
• Global energy usage - down 17%
• Global greenhouse gases - down 17%
http://www.kodak.com/US/plugins/acrobat/en/corp/environment/07CorpEnviroRpt/Sustainability_Report_2007.pdf
Source: Kodak Global Sustainability – Eastman Kodak Company 2007 Annual Report
Wal-Mart results (selected)...
• Buildings - 15% increase efficiency
• Transportation - 15% actual gain
• Packaging - 2,000 vendors
• Recycling - $28 million profit
• Products
• ALL farmed-shrimp factories are certified by ACC
• 20% increase in organic cotton sales
What are your sources of energy and materials?
How do you use energy and materials?
How do you dispose of waste?
focus on three questions...
John Latham (c) 2009
Why?