greener isn't green. brown isn't an option
DESCRIPTION
The presentation was given at the 2009 CHaINA Supply Chain Management conference in Shanghai on November 4, 2009. Entitled Green Isn't Greener. Brown Isn't An Option, this presentation focuses on the economic motivations that will drive sustainability, steps that some firms are making, and what happens to firms who fail to embrace sustainabilityTRANSCRIPT
Clean Up or Close Up
Going Green Isn’t GreenerStaying Brown Isn’t an Option
The World Wakes Up to Costs of Carbon (Dioxide)
150 USD Oil
Diesel and gas inflation brought calls for change that drowning polar bears could not Pressure on governments to regulation and subsidize solutions Pressure on industry to change - to reduce waste and increase efficiency Pressure on consumers to change habits – public transport, bicycles, and even walking!
Treehuggers and yuppies unite!
Global WarmingAl Gore (and his drowning polar bears) catalyze global awareness Inconvenient Truth and 11th hour become award winning movies Citizens begin learning about “carbon footprint”/ Schools begin teaching environmentalism TV Shows on CNN & Discovery highlight human impact on the environment while CNBC covers
investment opportunities Children tell their parents to save the word
Cleantech InvestmentInvestment in clean technology
Renewable energy (wind and solar) and alternative fuel enter consumer investor portfolio Vernacular/ technology are enter mainstream conversations on television Cleantech investment books become best sellers Economics of and focus on cleantech firms improves with each dollar rise in oil
Events that are Changing China
Labor Scandal Immediate Impact Domestic and International press coverage 45,000 investigators sent to Shanxi Public acknowledgement of system failure and call for change by party
Product Recalls International witch hunt and tit-for-tat Economic impact to Chinese manufacturers Questions at home about products surface
Immediate Impact
Immediate Impact•Environmental awareness took a quantum leap Domestic / International press coverage National support and sympathy for affected
Taihu Lake
5.12 Earthquake Immediate Impact 24/ 7 news coverage – with citizen journalists first to report (twitter) Intense corporate pressure to donate and manage messaging carefully First time many firms experienced the “mass” media
24/7 Full press coverage on TV, newspaper, blogs, &twitter Public awareness of problems with food industry, and call for changes Ongoing investigative reporting into other areas / other companies
Immediate ImpactMilk Scandal
Solar PanelsHybrid CarsWind MillsLEED CertificationsDouble-side PrintingOrganicsCarbon OffsetsGreen Jobs
Populations & LaborConsumer SafetyUrban PlanningUrbanizationFood & AgricultureLandfills & eWaste Over-packagingHealthcare
Managed Resources
Traffic and TransportHealthcare China will lead from a need for clean air, water, and food…
Framing Sustainability
Making the Case
The Door was open for change…
Consumers were becoming citizens
Citizens were become activists
Governments were responding
The Business Case For Sustainability was made
Clean Technology
Economics
Built Environment
ManufacturingResources
Civil Society Social Services
• Land Use• Renewable Materials• Food & Agriculture• Forests and Parks• Bodies of Water• Labor Pools• Waste Management• Air Quality
• Life Cycle Analysis• Closed Loop mfg.• Product Design • Packaging/ Waste• Logistics/ Transport• Ethical Supply Chain• Quality Control &
Assurance• Recycling & eWaste
• Financial Markets• Green Economies• MFG Vs Services• Urbanization• Rural/ Urban Gap• Consumer Spending• Green Consumers
• Urban Planning• Building Materials• Urban Transport• Greenspace• Energy/ Water efficiency• Build Retrofitting• Building Operation• Affordable Housing
• Smartgrid• Biofuels• Transportation• Waste-to-energy• Water Filtration• Clean Coal• Renewable Energy• Carbon Offset/ Trading
• Civic Engagement• Philanthropy• NGO Development &
Capacity• Social Enterprises• Cultural Preservation• Consumer Safety• Community Program
• Healthcare• Education• Poverty Alleviation• Elderly Care• Job Training• Rehabilitation &
Counseling• Financial Services
Supply Chain Management Council Member Experiences
Areas in need of Encouragement
Switching to Aerodynamic Trucks
Switching to More Efficient Modes
Switching to Carriers w/ Green InitiativeAreas That are Encouraging
Reduction in Packaging Materials
Selecting Recylcable Packaging Materials
Switching to Reuseable Containers
Reasons for Change. Reasons Prohibiting Change
Why Firms Are Not…
Lack of Expertise. Lack of Incentives. Lack of Regulation???
Why Firms Are Going “Green”
Strategic Interests Supplier Performance Customer Satisfaction
Leading the Pack
The Big Bang: Wal-Mart
October 2008 Announce Sustainability Revolution Comprehensive effort across supply chain and stores Alternative Energy, Transportation, Packaging, Recycling
Not spontaneous. It was planned for years. Wal-Mart is Serious
Others will be forced to follow
2008 Wal-Mart Home Entertainment Design Challenge Great design that attracts consumers. Product innovation that reduces the environmental impact for its product
category. Packaging design that facilitates reuse and recycling, reduces waste, and
reduces or eliminates the use of toxic materials.
HP Reduces packaging 97%
Breaking Barriers, Changing Habits, & Encouraging Change
Some Firms will see new opportunity Interface Flooring Haworth Nike
Going the Long Way
Some Firms will start with a single product BYD HP Esquel
Low Hanging Fruit
Some Firms will be sustainable from day 1 Burt’s Bees Bambu Home Shokay
Starting from Scratch
?Others Will Wait
Ways to React
1) The business case for sustainability has been made Environmental and economical sustainability are not separate items
2) Consumers Have Changed – and So Have Their Expectations Consumers are becoming citizens, and citizens are becoming active Consumer pressure on industry will only grow stronger
3) Global Supply Chains, Must Change… Will Change Environmental, labor, raw materials, water, and energy constraints have all changed
4) Changes will begin with design and end with product take back• Entire organization will be involved in the process
5) Solutions Exist, Cost Savings Exist, and Options are Readily Available Technology gains are growing – energy, transportation, etc Commoditization of parts, components, and technologies reduces cost of investment
If you don’t make the changes willingly, you will be force to through competition, regulation, or consumer action.
Takeaways
Learn More :
All Roads Lead to China www.allroadsleadtochina.comCollective Responsibility www.collectiveresponsibility.orgCleaner Greener China www.cleanergreenerchina.com
Follow my Tweet!
All Roads Lead to China@allroadsCollective Responsibility @chinaCSRCleaner Greener China @greenerchina
Contact Me!
Richard Brubaker [email protected]
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