action plan for sustainability and environmental responsibility

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


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


Take Your Choice!

• CERES Principles

• 4 R’s

• Energy Efficiency

• Adopt Sustainable Strategies


More Choices!

• Apply Systems Approach – Tunneling

• Climate Strategy

• Green Buildings


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


CERES Principles (cont’d)

• Safe Products and Services

• Environmental Restoration

• Informing the Public

• Management Commitment

• Audits and Reports


Four R’s

• Analyze waste streams

• 1 – Determine waste value and Reduce

• 2 – Identify alternatives and Reuse

• 3 – Recycle

• 4 – Redesign


Energy Efficiency

• Eco-efficient vs. Eco-effective

• Initially, Focus on Efficiency

• Then, Focus on Renewable Energy


Adopt Sustainable Strategies

• The Natural Step


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




• Servicizing


Servicizing

• Redefine commerce to deliver service and value, not material

• Maintain control over product life cycle

• Produce more cost efficient products


Application of Servicizing Strategy

• Incandescent Light Bulbs

• Interface – Commercial Carpeting

• Electrolux – Washing Machines

• duPont & Ford – Auto Assembly Paint Shop




• Servicizing

• Biomimicry


Learn From Nature – Biomimicry

• Solar panels

• Abalone

• Spider’s silk

• Bi-valves

• Cow’s enzyme

• Rhinoceros horn




• Servicizing

• Biomimicry

• Base of the Pyramid


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


The Great Leap Downward

Bottom of the Top Base of

the Pyramid


Driving Innovation from the Base of the Pyramid

• Honda

• LEDs

• Phones

• Nirma

• Galanz




• Servicizing

• Biomimicry

• Base of the Pyramid

• “BHAG”


Toilet Lid Sink


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


Vertical Farm


Tunneling

• Diminishing Returns

• Interface

• House Insulation


Climate Strategy

• Chicago Climate Exchange

• Integrating Carbon Trade


Integrating Carbon Trade

• Cap-and-Trade Market


Cap-and-Trade System




• Offset Exchange


Offset Exchange System




• Offset Exchange

• Cap-and-Dividend


Climate Strategy

• Chicago Climate Exchange

• Integrating Carbon Trade

• U. S. Climate Action Partnership


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


Green Buildings -- LEED

• USGBC

• LEED Certification

• EB – NC – CI – CS – H – ND


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


Why Do Companies Seek Sustainability?

• Economics• Image• Marketing• Social Consciousness• Concern for the Environment• Achieve Competitive Advantage• Survival


The Importance of Commitment

• Board Commitment

• Officer Commitment

• Manager Commitment

• Employee Commitment


What Are Some Companies Doing – Or Not Doing

• Acquiring Sustainable Companies• General Electric• Panasonic (Matsushita)• Interface• USCAP – or -- CEED• Shell• Terra Choice Study


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.”


Thank you for this opportunity!

George P. [email protected]

312-906-6543

action plan for sustainability and environmental responsibility

Documents