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trends in business sustainability

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Tanya C.

on 8 January 2013

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Transcript of trends in business sustainability

trends in business sustainability corporate trends actions CFO increased involvement According to the GreenBiz Index... "sustainable business is suffering from a recessionary hangover" environmental sustainability efforts continues to be a growing trend and commitment for corporate businesses and will be necessary for a competitive market edge despite some decline in progress... Big Data & Sustainability Reporting what can do we do to continue sustainability progression? Energy Efficiency Energy consumption increased slightly in 2010 after decades of steady declines. A weakened economy in 2010 brought investment rates down, preventing advancements for more productive energy efficient technologies. Furthermore, most Americans aren't willing to invest in energy efficiency improvements until they see a cost benefit. Green Power "Renewable energy still makes up just a small sliver of the total US energy pie,
but the quantity has more than doubled since 2001 and the rate of growth increased in 2011." Carbon emissions are growing faster than the economy, rising in 2010 after several years of decline. This was due to emerging economies, colder winters, and lower prices of coal. While early numbers for 2011 estimate about a 0.7% decline from 2010 as a result of an increase in renewable projects and decommissioning of coal-powered plants, the final carbon intensity will likely be higher than 2009. Toxic Emissions Toxic emissions have increased. The expansion of mining and manufacturing industries has helped the economy, but in turn has largely contributed to the increase in emissions. While some companies have voluntarily taken action to personally decrease their emissions, regulations need to be tougher and better enforced. Paper Use & Recycling Paper use has declined and recycling has increased over past few years. In 2010, we saw a slight increase in paper usage, but we've also reclaimed most of that paper with a 63.5% high recovery rate. Single-stream recycling collection has also made it easier for people to recycle. Extending single-stream recycling collection to the commercial sector may help boost recycling collection rates and further progress this effort. Commuting Commuters haven't been able to cut out driving habits. Alternatives continue to be unappealing and job layoffs negatively affect carpooling rates. However, these numbers only reflect how people normally get to work, and do not reflect those that telecommute or take alternative modes of transportation from time to time. how are we doing? GreenBiz progress indicators = making progress = standing still = falling behind Using the following icons, let's explore how we're doing in some areas... Carbon Intensity CFOs are becoming increasingly involved in sustainability efforts, especially around reducing costs and managing risks. Growing demand for transparency and disclosure of sustainability impacts by shareholders put companies at risk for public scrutiny. Sustainable Consumption Gamification Drives Up Sustainability Resource Scarcity As the importance of sustainability continues to grow across companies, key players (such as customers, employees, shareholders, and policy makers) are increasingly demanding transparency and disclosure around company activities and impacts. Developing new tools, such as smart meters, will provide companies with "big data" - large data sets too big for traditional databases and spreadsheets. Big data can enable companies with the accurate data they need to better manage their activities and sustainability impacts. Global Cleantech Growth Companies are closing the loop in re-manufacturing efforts to reduce consumption. Examples include: Patagonia launched a campaign asking customers to reduce unnecessary consumption of their products. In turn, Patagonia commits to building lasting products, making repairs, and recycling materials. Puma is launching a new "InCycle" collection of shoes, apparel, and accessories that are either biodegradable or recyclable. Puma's Bring Me Back program will educate and encourage customers to return items for recycling and maintain a "cradle-to-cradle" life cycle for its products. Companies are integrating games to make sustainability fun. Examples include: Juniper Networks held an internal competition across its buildings to support energy reduction efforts. Ford shows its drivers how fuel efficient their driving is through an interactive plant located on the dashboard of its Ford Fusion Hybrid. The plant will grow or wither based on how fuel efficient the driver is performing. This visual tool is intended to change the way people drive. Solar energy hit record growth in the U.S., with more than 1,000 megawatts installed during the first three quarters of 2011. Germany set a world solar power record, producing 50% of its electricity from solar power. The U.S. automobile industry is also making progress in cleantech, producing more high MPG models and tripling plug-in car sales. Tesla Motors was awarded 2013 Motor Trend Car of the Year for its all electric powered Model S. Companies are already seeing impacts of resource constraints. According to an Ernst & Young survey, "76% of survey respondents said that they anticipate their company’s core business objectives to be affected by natural resource shortages in the next three to five years." Source: Ernst & Young Survey Source: Ernst & Young Survey Conflict Materials Rare Earths are a concern as they are mined in controversial conditions that cause environmental damages such as climate change and deforestation. coming into the U.S. mostly come from China, creating economic challenges. Global demand of these rare earths further limits supply. In addition, mining and recycling of these materials can have negative environmental impacts. Nike's Considered Design focuses on creating "closed-loop" products by using the least amount of materials. However, many of its recycled products are unknown since Nike almost never includes sustainability as part of their marketing campaigns. Instead, Nike markets innovation performance, which is important to its customers.

Nike is missing out on a opportunity to change consumer behavior and encourage sustainability. Educate consumers about sustainability and market sustainability campaigns to change behavior. Change Consumer Behavior Find
& implement a system that can handle Big Data and reporting needs Assess
availability of resources & develop risk mitigation plans Recognize that EMPLOYEES are key players and integrate their ideas into company's plans. Employee involvement is vital to incorporating sustainability into company culture Involve CFOs in sustainability efforts as they can provide the same due diligence to sustainability reporting as they do for financial reporting Cut down consumption by offering services as opposed to products Learn from "Mesh" Companies "Mesh companies create, share and use social media, wireless networks, and data crunched from every available source to provide people with goods and services at the exact moment they need them, without the burden and expense of owning them outright."
-Lisa Gansky, "The Mesh" partnered with Eaton to run pilot programs to test Eaton's hybrid electric power system and develop more sustainable delivery trucks. Coca-Cola
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