Sustainable Direction Ltd

30th May 2019

Sustainability err ESG err CSR err ?

Past, Present and Future

?

Economics of permanence – projected long

term continuance.

“…there can be ‘growth’ towards a limited

objective, but there cannot be unlimited,

generalised growth”

– E.H.Schumacher, 1973

“Small is Beautiful”

Incr

easi

ng

ran

ge o

f ca

pab

iliti

es

Time

Huntergatherer

Agrarianeconomy(Primary)

Industrial andManufacturing economy(Secondary)

Technologicaleconomy(Tertiary)

Information and Services based(Quaternary)

Industrial Revolution

TODAY’sIndustrial

Revolution?

Sustainable Age?

1950s – 1970s

Post-War era

“Golden Age”

1972

“Limits to Growth”1980s – 1990s

“Paradigms shape perceptions;

perceptions shape emotions;

emotions shape actions”

Today’s Main Messages

The two most important days in your life are:

• the day you are born, and

• the day you find out WHY.

• Today is not about growth, growth is a secondary outcome of understanding and living out your Why. (hamsters treadmills)

• Business to Business and Business to Consumer are not the approaches. Business is People to People. Process is essential but is secondary.

• First kill all the marketers (more on this later). • 'The first thing we do, let's kill all the lawyers,'' was stated by Dick the Butcher in ''Henry VI,'' Part II, act IV,

Scene II, Line 73

Where are we?

How do we

get there?

Where do we

want to be?

RejectionNon-

responsive ness

EfficiencyStrategic proactive

Sustaining Business

Compliance/Reactive

Value destroyers

Value limiters

Value conservers

Value creatorsSustainable

Buisness

Opposition

Employees and natural environment

are instruments to be exploited.

Oppose government and green

activists.

Rejection

Non-responsive

ness

Ignorance

Focus on finance and technology.

Seeks compliant work force.

Environmental resources seen

as a free good.

Efficiency

Strategicproactivity

Compliance/Reactive

Risk

Focuses on minimum legal standards, but

maintains good citizen image.

Little integration between HR and

environment.Cost

Increasing productivity and efficiency through

management systems to reduce costs.

Increased employee engagement and team

involvement.

Competitive Advantage

Creatively destroying to recreate.

Sustainability leader, increasing stakeholder

engagement to innovate and add value to

products and processes.

Shift business paradigm to

environmental and social ideas.

Sustaining

Business

Transformation

Reinvents corporation as an integral element of its

society and ecological context.

Strong internalised ideology of

working for a sustainable world.

Pursues excellent return to investors.

Voluntarily goes beyond,

and actively promotes ecological

sustainability values and practices in

industry and society.

Fundamental commitment to

facilitate a society that supports

ecology, and just/equitable social

practices for human fulfilment.

“DO MORE WITH LESS”

Transformation

Reinvents corporation as an integral element of its

society and ecological context.

Strong internalised ideology of

working for a sustainable world.

Pursues excellent return to investors.

Voluntarily goes beyond,

and actively promotes ecological

sustainability values and practices in

industry and society.

Fundamental commitment to

facilitate a society that supports

ecology, and just/equitable social

practices for human fulfilment.

Beyond the Triple Bottom Line

Employees Customers Environment

Profit

People Planet

People Planet Profit

Improved by Sustainable Direction’s Trifocal Perspective

Beyond the Triple Bottom Line

£

Time

Revenue

Cost

Beyond the Triple Bottom Line

£

Time

Revenue

Cost

Increased worker productivity

Beyond the Triple Bottom Line

£

Time

Revenue

Cost

Increased worker productivity

+increased customer

satisfaction

Beyond the Triple Bottom Line

£

Time

Revenue

Cost

Increased worker productivity

+increased customer

satisfaction

+reduced environmental

impact

Beyond the Triple Bottom Line

£

Time

Revenue - GROWTH

Cost

Increased worker productivity

+increased customer

satisfaction

+reduced environmental

impact

Happiness and Productivity

Reduce sickness absence – this costs UK businesses £29 bn per year

Increased attendance

Increased performance – happy people are more productive

137.3 million working days lost in 2016 – 4.3 per worker

Wellbeing / happiness includes mental and physical fitness, e.g. ability to manage stress

Q: What do you and your company currently do to measure / understand health and wellbeing?

What could you do with no additional budget, just changing culture and working practices?

• Extra 1.3 million units production output over 50 working days• 53% productivity increase

• Quality defects, rework and rejects reduced by 60%• Recruitment, training and additional supervision costs reduced by 80%

Output

Cost

The Importance of Purpose

Financial reward is NOT enough – a pay rise motivates for 6 months

A business with purpose will:

• attract and retain the most talented people

• build passion and loyalty among its workforce

• have fewer staff sick days and employees who work longer and harder

• have higher productivity

Culture and Ethics

Performance drivers:

• Self-worth and value within the company

• Personal motivation

• Recognising and rewarding talent

• Clear vision and enthusiastic leadership

Customer Satisfaction

Customer Service is not a department, it is everyone’s job

Happy customers / clients mean reduced rework and less time spent fixing problems

It is quicker to keep customers than win customers – saving BD time

Customer satisfaction is

worthless. Customer

loyalty is priceless.

-Jeffry Gitomer

People Make The Difference

People deliver everything;

• Employees who want the organisation to be a success will contribute discretionary effort

• Customers and clients who become fans not just recipients of a commercial deal. They may be quick to criticise but can become advocates

• Suppliers – Logistics people who like you will ensure deliveries and fairness

• Banks – Confidence and trust make finance available and promote support rather than attention

Earth Overshoot Day

‘…when humanity has exhausted nature’s budget for the year. For the rest of the year, we will live in an ecological deficit, living beyond our means.’

In the 1970s, we crossed a critical threshold:Human consumption began outstripping what the planet could reproduce.

In 2017 we

used a year’s

worth of

resources by

2nd August.

Living Beyond Our Means

Our demand for ecological resources is now equal to more than 1.5 Earths…

What Are You Measuring?

A mass and energy balance highlights hotspots of waste

and typically saves 10 – 20% resource use

Patagonia• In Rose Marcario’s first 6 years at Patagonia, the company tripled its profits.

• Patagonia is growing rapidly. The company had sales of $800m in 2016, twice as much as in 2010.

https://www.theguardian.com/business/2017/mar/07/the-north-face-patagonia-saving-world-one-puffer-jacket-at-a-time

Our Mission:

• Build the best product,

• Cause no unnecessary harm,

• Use business to inspire and implement

solutions to the environmental crisis.

RejectionNon-

responsive ness

Compliance/ Reactive

Efficiency Proactive Sustaining

Value destroyers

Value Limiters

Value conservers

Value creators

Sustainable business

Where is your organisation?

Conclusions

Stop chasing results – pursue the right thing, put the right systems in place, get the culture right, and the results will follow (growth and profit).

Ask why. Say no to things.

“Commit to your cause, not your task”

• Happy, engaged, empowered workforce

• Satisfied customers who keep coming back

• Reduced environmental impact and reducing cost

Conclusions

Employees Customers Environment

Profit

People Planet

Growth

The World’s To-Do List by 2030

Goal 1: End poverty in all its forms everywhere

Goal 7: Ensure access to affordable, reliable, sustainable and modern energy for all

Goal 12: Ensure sustainable consumption and production patterns

Goal 13: Take urgent action to combat climate change and its impacts

Facts and Figures

836 million people still live in extreme poverty

#SDG1

About one in five persons in developing regions lives on less than $1.25 per day

#SDG1

One in five people still lacks access to modern electricity

#SDG7

Each year, an estimated one third of all food produced – equivalent to 1.3 billion

tonnes worth around $1 trillion – ends up rotting in the bins of consumers and

retailers, or spoiling due to poor transportation and harvesting practices

#SDG12

Should the global population reach 9.6 billion by 2050, the equivalent of almost three planets could be required to provide the

natural resources needed to sustain current lifestyles

#SDG12

Global emissions of carbon dioxide (CO2) have increased by almost 50 per cent

since 1990

#SDG13

Emissions grew more quickly between 2000 and 2010 than in each of the

three previous decades

#SDG13

It is still possible, using a wide array of technological measures and changes in behaviour, to limit the increase in global mean temperature to two degrees Celsius above pre-

industrial levels

#SDG13

John Henry

Looney

Director and Delivery

Thank You

www.sustainabledirection.com

Chris Springett

Principal

and Delivery

Success