1© 2degrees Ltd.

Towards a Sustainable Competitive Advantage

• Gain insight on the challenges• Engage with the key people to solve the problems• Grow your business

Business Services

2© 2degrees Ltd.

Facing up to the reality of a 4th Economic Revolution

Organisations face the reality of 3 Hard Truths:

Sustainability will be the source of competitive advantage

1. More people, needing more energy, food and water

2. Economics of scarcity impacting the traditional supply of energy, food and water

3. Environmental pressures increasing as a consequence of the above

The implications of these hard truths are that we face a 4th economic revolution: The Sustainability Revolution

• Most current organisations are expected to suffer the consequences with a few (11%) expected to gain

• Environmental legislation will impact all organisations whilst customer expectations of businesses will exceed the requirements for legislative compliance.

3© 2degrees Ltd.

2degrees Business: Helping clients solve sustainable business challenges

3 lines of Business:

1. Community development • Participating in working groups

• Positioning at forefront of solutions

2. Corporate services• Packaged services meeting

common needs

• Matching needs with solutions

3. Strategic Consulting• Sustainable competitive

advantage: insight to implementation

• Specialist partner services and advisory boards

4© 2degrees Ltd.

2degrees client case examples

Sustainable Competitive Advantage:

1. Collaboration

2. ‘Zero Waste’

3. Infinite resource

4. Climate resilience

5. Measurement

5© 2degrees Ltd.

The Business Model behind the 2degrees service offerings

Pathfinder Pioneer

Demand - side clients Supply- side clients

Access to “Pioneers”Accelerate best practice Early mover advantageCollaborative efficiencyPathfinder “deals”

Access to “Pathfinders”Accelerate innovation

Co-creation opportunitiesGo to market efficiency

Reduced cost of sale

6© 2degrees Ltd.

Our three business lines: (1) Community

Creates value for individual members: specialist, managed peer environment, offering: information, shared insights, contacts, collaborative problem-solving,

jobs and solutions. Highly scaleable revenues: premium content, jobs, directories, CPD, tools etc.

Double click to open pdf documents

7© 2degrees Ltd.

Our three business lines: (2) Corporate services

A service that leverages our unique access to our Community, our collaboration tools and our ability to harness the collective ‘know-how’ of our members to create

value for individual client organisations

Double click to open pdf documents

Insight Engagement Implementation

Surveys, briefings and reports on sustainability challenges

Roundtables, forums, webinars, conferences and company events

Pipeline, solution and trade & investment accelerators

Company audit of sustainable competitive advantage

Collaboration workshops (inter and intra company)

Supply chain hubs

Scenarios and perspectives on future industry development

Strategy and proposition development

Partner joint service offerings in environmental resource management

8© 2degrees Ltd.

Our three business lines: (3) Strategy Consulting

A partnership with global management consultancy, Monitor Group, to leverage the 2degrees Community to develop strategies for Sustainable Competitive

Advantage

9© 2degrees Ltd.

Other examples

10© 2degrees Ltd.

The Business Model behind the NHS Proposal

Pathfinder Pioneer

Demand - side clients Supply- side clients

Access to “Pioneers”Accelerate best practice Early mover advantageCollaborative efficiencyPathfinder “deals”

Access to “Pathfinders”Accelerate innovation

Co-creation opportunitiesGo to market efficiency

Reduced cost of sale

11© 2degrees Ltd.

The Challenge•Tesco published a goal of reducing carbon in its supply chain by 30% by 2020•Tesco has a huge, geographically widespread supplier base (c. 100,000 suppliers worldwide)•Traditional approaches would be challenging in terms of resource and time required•Ownership of issues at the supplier level was critical to ensure company buy-in•Cost-effectiveness was critical to Tesco•Scalability of the solution was critical to Tesco•Minimal Tesco management time requirement was critical

2degrees Solution: The Knowledge Hub•6 month Pilot with 75 suppliers, >150 individual participants in 2010

• Offered access to participants’ expertise as well as access to the wider 2degrees community of sustainability professionals

• Highly structured content plan designed and delivered by 2degrees Working Group Managers engaged participants in carbon reduction activities

•Phase 2 now being rolled out to >1,000 participants at >500 suppliers across Tesco supply chain

• Very high engagement levels (>90% of those invited to join did so)• High levels of participation (>80% attended or downloaded

webinars, contributed to forums etc.)• High levels of sharing (>40 case studies / best practice uploaded)• High levels of learning (c. 500 documents downloaded by

participants)•Advisory board is being engaged to build on the programme’s credibility

Outcomes:Tesco’s engagement platform enables them to collaborate effectively with suppliers to deliver its sustainable business targets/opportunities .Tesco’s supplier community is: •Connected to its customer, Tesco•Knowledgeable about a core sustainability issue/issues, e.g. carbon reduction•Collaborative, working with each other•Armed with practical solutions, including tools and service providers, that can help them accelerate their approach to embedding sustainability•Efficiently meeting sustainability challenges, such as reduced costs and waste

Client Feedback

“We have chosen 2degrees to be our cornerstone partner to help us work more closely with our suppliers to drive CO2 out of our supply-chain. During the pilot they managed a program on their platform that helped us share best practice and address challenging problems that our suppliers are facing. We want to build momentum with all our suppliers on the journey to lower carbon products, and we can't do this without a comprehensive online solution, alongside hosting events in person. The Knowledge Hub has worked really well and I am looking forward to rolling out the program with our next 500 suppliers.”

Louise Willington, Climate Change Manager, Tesco

Case Study: Tesco, Supplier engagement knowledge “Hub”

12© 2degrees Ltd.

The Challenge• World Bank Institute “Resilient Cities Program” aims to support the sustainable development of the major cities in growth economies•These Cities face major challenges to make their Cities “Liveable” in the face of climate change, mass urban migration, infrastructure stresses and sustainable access to energy, food, water and other key resources•Many of these issues are common to the Cities, however the traditional means of sharing best practices are inefficient and collaboration is limited•World Bank Institute traditional channels of support are inefficient , resource, time and travel intensive. Transfer of best practice between cities is limited.•The World Bank Institute needs an efficient means of supporting collaboration between cities in the Global South to make city growth more sustainable and resilient.

2degrees Solution: The Resilient Cities Knowledge Hub• Pilot in 2010 of "resilient cities" knowledge “hub”, with Jerusalem, Amman, Dhaka, Durban, Mexico City and Sao Paulo, collaborating and benchmarking the performance in adaptation to climate change and poverty stresses.•Dedicated space set up on 2degrees •2degrees staff worked with stakeholders to build a programme of compelling best practice sharing and collaborative problem-solving. •We recruited target members and enrolled them into the programme which was initially focused on waste and water management.

Outcomes:The program provides a cost-effective way of getting teams of up to 20 people per city engaged and informed about current operational good practice.•It increases the number of internationally-informed people within a city administration•It reduces the need for costly international travel•It increases the global profile of the city•International organisations, like the World Bank, will get a better understanding of where they can help participating cities •We are engaging a large community of cities around the world into a “Community of Practice”. •The member participating cities are sharing their best examples of adaptation to these pressures,•We are enabling better “peer-to-peer” learning, online and by teleconference.

Client Feedback

“It is shaping into a uniquely effective way to build capacity. We are now planning how to roll it out to more cities.”

Habiba Gitay, PhD ,Senior Environmental Specialist , World bank Institute, Washington

Case Study: World Bank Institute resilient Cities stakeholder engagement knowledge “Hub”

13© 2degrees Ltd.

The Challenge•Many industries are converging in the Future Home and Business space. •Corporate giants such as IBM, Google, Nokia and Microsoft are exploring game changing strategies that have potential to capture value from energy services and supply. •The assumption that whoever supplies the energy, controls the value chain is likely to be challenged even with the installation of smart meters by the Energy Supplier•Centrica lacked a guiding strategic vision to co-ordinate its investments, align business approaches and set direction focused on biggest sources of value.

2degrees Solution: The Future Homes Scenarios•Private working group established on 2degrees involving over 30 organisations including: Centrica, Sony, Hitachi, Vodafone, National Grid, Oxford University, MIT, The Climate Group, and Cisco•To broaden view on future homes and business, identify scenarios, growth options and implementation initiatives. •Goals to mobilise concerted action across British Gas to grow the business in homes and businesses. •Produce a strategy and framework that outlines the likely opportunities and threats to British Gas in the future homes and businesses space, and suggests options for growth. •The project was delivered in three stages each with distinct deliverables and outcomes:

• Stage 1: Gather information, draft scenarios and assess their implications on British Gas

• Stage 2: Indentify specific options for British Gas to pursue, from short term initiatives to long term structural change

• Stage 3: Consolidate into shared company-wide strategy framework

Outcomes:For Centrica•In a first for this market we helped them see the potential of collaboration to broaden their perspective on the market opportunity. •We developed a common strategy framework that guides all the current and future efforts of Centrica in the Future Homes market:

• Business models and where to play in the value chain • Guidelines on opportunities to pursue• Current and emerging threats to British Gas business• Capabilities, skills, technology that need to be developed or

acquired in order to achieve this, and partnerships that should be considered

• What moves are being made by key competitors• Next steps to track and monitor competitor activity and

consumer needs; and spot the signs and triggers of game changing business models coming through

For Other Participants:•It is a private space for twenty to thirty relevant companies to discuss their views. Shared, unique insights on how the market might develop.•Builds on the latest views from each of the participating industries, as well as discussing technology, consumer needs and policy. I•The working group and all content posted on it is invisible to all 2degrees members unless expressly invited to join

Client Feedback

““It would have been almost impossible to have done this as well and as quickly without 2degrees.” Jose Davila, Centrica innovation

Case Study: Centrica, Strategic Perspectives on Future Homes

14© 2degrees Ltd.

The Challenge•The market for ESCO solutions is in its early stages with mixed success and the SUSCO model is embryonic. •Serco has broad range of capabilities needed to be a pioneer of ESCO and SUSCO market•The are few informed clients capable of buying these solutions and many structural procurement barriers to overcome•Traditional sales channels are unlikely to be efficient in targeting buyers of ESCO/SUSCO proposition

2degrees Solution: Serco go-to-market accelerator

To develop these markets with Serco, 2degrees • Engaged members of 2degrees in the issues and opportunities for performance contracting in energy efficiency, generation, waste and resource management•Identified and engaged the leading organisations likely to be involved in this developing market (demand side and complementary supply side organisations)•Set up and facilitated on-line/off-line discussions with these Pathfinder organisations to drive the development of this market and generate specific pipeline opportunities for Serco

Outcomes:Serco were able to develop:•Practical insights on the market opportunity•Clear criteria for identifying lead customers for their proposition•A platform to engage pathfinder customers efficiently and discuss the needs, barriers and business case for ESCO/SUSCO opportunities•A qualified sales pipeline with over £120m priority projects•Spin off opportunities e.g. development and launch of NHS Re-Use in partnership with UCLH NHS Foundation Trust (http://nhsreuse.co.uk/)

Client Feedback"Working with 2degrees has provided a number of benefits, from gaining a great understanding of the sustainability market that has fed into our strategic development, to opening up a qualified pipeline of business opportunities in excess of £120m”

Matt Pumfrey, MD Sustainability and Energy Services, Serco plc

Case Study: Serco, Go-to-market accelerator

15© 2degrees Ltd.

Example: Innovation challenges- providing practical solutions to issues that can be highly specific and technical, for example:

16© 2degrees Ltd.

Greener Healthcare Community of Practice –for both clinical and non-clinical audiences managed by dedicated 2degrees advisors working through topics such as green nephrology, low carbon cancer care, employee engagement and education, renewable energy technology & investment, many other topics

Home Healthcare – The NHS has three cornerstones in place for their future, Modernisation, Efficiency and Sustainability. Home Healthcare is very much seen as a viable alternative to overcrowded and under resourced hospitals. We are managing an initiative with the NHS and the private sector to accelerate the development of Home Healthcare through collaboration, enabling all parties to learn from each other through dialogue rather than isolation.

Waste management – Food waste in particular is a large issue within the NHS with thousands of tons going to waste every year. We have been working with major waste management firms, catering providers and pilot trusts to identify best practice to share with the rest of the Health service.

Carbon reduction & Sustainability Strategy- to help highly ambitious hospitals and trusts to develop practical strategies that have the potential to change their entire working structure. Using principles learnt from organizations such as: M&S, Prudential and Centrica.

Example: Greener Healthcare

17© 2degrees Ltd.

The GreenXchange began as a project of Nike, Creative Commons, and Best Buy. Founders are seeking a way to put their environmentally friendly inventions into play while still retaining some degree of control in areas in which they have competitive and business development interests.

The GX is an online patent and business information exchange that uses the network efficiencies of open innovation to solve the problems of sustainability. The concept of open innovation calls on companies to use external ideas and patents to advance their own technologies and products, while also sharing internal ideas and patents with other companies to facilitate use of the technology, and for profits through licensing.

2degrees is a partner of the GreenXchange. We are developing plans for the collaboration platform and community of practice for the exchange.

www.greenxchange.force.com

Example: 2degrees is a founding partner in the Nike GreenXchange

18© 2degrees Ltd.

www.2degreesnetwork.com

Martin Chilcott, Founder & CEO

• MartinChilcott@2degreesnetwork.com

Simon Brown, Managing Director, Solutions

• simonbrown@2degreesnetwork.com

Oliver Hurrey, Commercial Director

• OliverHurrey@2degreesnetwork.com

Jonathan Patrick, Managing Director, Services

• jonathanpatrick@2degreesnetwork.com

To ensure that 2degrees remains a focused and relevant collaborative environment for senior private and public sector business leaders, sustainability professionals, solutions providers and policy influencers, membership is by application only

How to find us:

Please contact us to explore how we might be of service to your organisation