stuart school of business action plan for sustainability and environmental responsibility...
TRANSCRIPT
Stuart School of Business
Action Plan for Sustainability and Environmental Responsibility
Presentation to the National Association of Wholesaler-Distributors by
George P. NassosOctober 15, 2008
Stuart School of Business
The Need for Sustainability – The Environment’s Big Three
• Energy – Depleting Fossil Fuels
• Water – Growing Shortage
• Global Warming: 3-5º F., 2050, 60-80%, 1990
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Take Your Choice!
• CERES Principles
• 4 R’s
• Energy Efficiency
• Adopt Sustainable Strategies
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More Choices!
• Apply Systems Approach – Tunneling
• Climate Strategy
• Green Buildings
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Can Start With Quick Fix – Adopt the CERES Principles
• Protection of the Biosphere
• Sustainable Use of Natural Resources
• Reduction and Disposal of Wastes
• Energy Conservation
• Risk Reduction
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CERES Principles (cont’d)
• Safe Products and Services
• Environmental Restoration
• Informing the Public
• Management Commitment
• Audits and Reports
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Four R’s
• Analyze waste streams
• 1 – Determine waste value and Reduce
• 2 – Identify alternatives and Reuse
• 3 – Recycle
• 4 – Redesign
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Energy Efficiency
• Eco-efficient vs. Eco-effective
• Initially, Focus on Efficiency
• Then, Focus on Renewable Energy
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Adopt Sustainable Strategies
• The Natural Step
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The 4 Conditions of The Natural Step
• Do not systematically increase concentration of substances extracted from the Earth’s crust
• Do not systematically increase concentrations of substances produced by society
• Do not systematically mismanage the ecosphere
• Resources are used fairly and efficiently in order to meet basic human needs worldwide
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Adopt Sustainable Strategies
• The Natural Step
• Servicizing
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Servicizing
• Redefine commerce to deliver service and value, not material
• Maintain control over product life cycle
• Produce more cost efficient products
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Application of Servicizing Strategy
• Incandescent Light Bulbs
• Interface – Commercial Carpeting
• Electrolux – Washing Machines
• duPont & Ford – Auto Assembly Paint Shop
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Adopt Sustainable Strategies
• The Natural Step
• Servicizing
• Biomimicry
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Learn From Nature – Biomimicry
• Solar panels
• Abalone
• Spider’s silk
• Bi-valves
• Cow’s enzyme
• Rhinoceros horn
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Adopt Sustainable Strategies
• The Natural Step
• Servicizing
• Biomimicry
• Base of the Pyramid
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The Global Pyramid
Low-Income Markets
(BOP)
Emerging Middle Class
Wealthy
Purchasing Power Population in Millions
>$15,000
$1,500 – 15,000
<$1,500
800
1,500
4,000
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The Great Leap Downward
Bottom of the Top Base of
the Pyramid
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Driving Innovation from the Base of the Pyramid
• Honda
• LEDs
• Phones
• Nirma
• Galanz
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Adopt Sustainable Strategies
• The Natural Step
• Servicizing
• Biomimicry
• Base of the Pyramid
• “BHAG”
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Toilet Lid Sink
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Advantages of Vertical Farming
• Year-around crop production• No weather problems• All food grown organically• Eliminates agricultural runoff• Farming in urban centers• Reduces fossil fuel use• Converts black and gray water
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Vertical Farm
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Tunneling
• Diminishing Returns
• Interface
• House Insulation
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Climate Strategy
• Chicago Climate Exchange
• Integrating Carbon Trade
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Integrating Carbon Trade
• Cap-and-Trade Market
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Cap-and-Trade System
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Integrating Carbon Trade
• Cap-and-Trade Market
• Offset Exchange
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Offset Exchange System
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Integrating Carbon Trade
• Cap-and-Trade Market
• Offset Exchange
• Cap-and-Dividend
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Climate Strategy
• Chicago Climate Exchange
• Integrating Carbon Trade
• U. S. Climate Action Partnership
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U.S. Climate Action Partnership
• Companies trying to influence government• Six principles
– Account for climate change– Create incentives– Be environmentally effective– Create economic opportunity & advantage– Be fair to impacted sectors– Reward early action
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Green Buildings -- LEED
• USGBC
• LEED Certification
• EB – NC – CI – CS – H – ND
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Measuring Your Success – With GEMI
• What is material1. Understand context2. Assess issues3. Develop key objectives
• What and how to measure4. Define key performance indicators and metrics
• How to assure effectiveness5. Evaluate and communicate metrics6. Evaluate integration and improvement
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Why Do Companies Seek Sustainability?
• Economics• Image• Marketing• Social Consciousness• Concern for the Environment• Achieve Competitive Advantage• Survival
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The Importance of Commitment
• Board Commitment
• Officer Commitment
• Manager Commitment
• Employee Commitment
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What Are Some Companies Doing – Or Not Doing
• Acquiring Sustainable Companies• General Electric• Panasonic (Matsushita)• Interface• USCAP – or -- CEED• Shell• Terra Choice Study
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Why Sustainability Has Not Made a Breakthrough
“There is an important job to be done,and Everybody expects that Somebody would do it.
Anybody could do it, but Nobody did it.Somebody gets angry about that because it is Everybody’s job.
Everybody thinks that Anybody should do it,but Nobody realizes that Everybody would not do it.
It ends up that Everybody blames Somebodywhen Nobody does what Anybody has to do.”
