copyright (c) 2008, jeana wirtenberg & associates, llc transitioning to green tm : a world of...
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Copyright (c) 2008, Jeana Wirtenberg & Associates, LLC
Transitioning to Greentm:
A World of Possibilities
Jeana Wirtenberg, Ph.D. Jeana Wirtenberg, Ph.D.
FWA Scholarship Reunion: Sustaining Eco-Savvy Women
January 5, 2009
Copyright (c) 2008, Jeana Wirtenberg & Associates, LLC
What Is Sustainability?
“Meeting the needs of the present without compromising the ability of future generations to meet their own needs.”
Our Common Future, UN Brundtland Report, 1987
“A company’s ability to achieve its business goals and increase long-term shareholder value by integrating economic, environmental and social opportunities into its business strategies.”
“Symposium on Sustainability – Profiles in Leadership,” New York, October 2001
Copyright (c) 2008, Jeana Wirtenberg & Associates, LLC
What Is Sustainability?
Key aspect:
Triple Bottom Line
• Social
• Environmental
• Economic
Viable
Bearable
Equitable
Copyright (c) 2008, Jeana Wirtenberg & Associates, LLC
Our Purpose for Today
1. The urgent need to move to a new business model based on the triple bottom line
2. The many challenges and opportunities in transitioning to a green economy
3. How you can make a difference – personally and in your organizations
Copyright (c) 2008, Jeana Wirtenberg & Associates, LLC
Another Way of Looking at Our Purpose for Today…
From To
Hopeless Inspired
Helpless Engaged
Immobilized In Action
Copyright (c) 2008, Jeana Wirtenberg & Associates, LLC
Global sustainability issues impacting all organizations and people in the world
Social Justice
• 1 in 5 children gets no schooling
• 9.1 billion by 2050,
biggest increase in developing countries
Copyright (c) 2008, Jeana Wirtenberg & Associates, LLC
Global sustainability issues impacting all organizations and people in the world
Environmental Sustainability
• Global warming and climate change - Rising sea levels
• “The Death of Birth”
• Fresh water shortages
• Ecological Footprint
Copyright (c) 2008, Jeana Wirtenberg & Associates, LLC
Ecological Footprint Tool: Global Applications
Ecological Creditors and Ecological Debtors
• Greens are Ecological Reserves – Dark equals > 50% of biocapacity– Light equals < 50% of biocapacity
• Reds are Ecological Deficit– Light equals < 50% of biocapacity– Dark equals > 50% of biocapacity
http://footprintnetwork.org/gfn_sub.php?content=creditor_debtor
Copyright (c) 2008, Jeana Wirtenberg & Associates, LLC
Economic Sustainability
“The major challenge—and opportunity—of our time is to create a form of commerce that uplifts the entire human community of 6.5 billion and does so in a way that respects both natural and cultural diversity… And business can—and must—lead the way.”
Stuart L. Hart (2007)
Copyright (c) 2008, Jeana Wirtenberg & Associates, LLC
Looking Through a New Economic and Financial Lens
• Rethinking and redefining GDP– The need to include the 5 capitals:
• Human• Social• Natural• Manufactured• Financial
• Environmental, social, and governance = new reference point for financial analysis and decision-making– UN Principles of Responsible Investment
• To “better align investors with the broader objectives of society”
Copyright (c) 2008, Jeana Wirtenberg & Associates, LLC
Looking Through a New Economic and Financial Lens
• New market creation– Bottom of the Pyramid protocol (Hart, 2008)
• Opening Up• Building the Ecosystem• Enterprise Creation
– Indigenous business development• Engagement of communities in sustainable
development and growth of enterprise• Innovation of existing processes• Development of micro-enterprise• Authentic indigenous solutions
Copyright (c) 2008, Jeana Wirtenberg & Associates, LLC
Guiding questions
1.1. What concerns you most?What concerns you most?
2.2. What are the things you can do to impact What are the things you can do to impact sustainability?sustainability?
3.3. Call to action –Call to action –What’s your commitment?What’s your commitment?
What are you willing to do to make an impact What are you willing to do to make an impact personally and in your organizations?personally and in your organizations?
The SUSTAINABILITY PYRAMID: Qualities Associated with Highly Successful Sustainability Strategies
COLLABORATIVEINTEGRATION
•Holistic Integration •Broad Stakeholder
Engagement
TRACTION •Alignment of Hard & Soft Organization
Systems•Metrics – Measurement & Reporting
FOUNDATION •Strategic Centrality
•Senior Management Support•Deeply Embedded Values
The Triple Bottom LineSUSTAINABLE ENTERPRISE
©Institute for Sustainable Enterprise, 2006
2007 AMA Sustainability Survey
AMA Global Sustainability Study
• 1,365 survey respondents from around the world
• 9 interviews with companies known for their excellence in sustainability
United States
62.1Asia11.7
Europe
10.6
Canada
5.5
Mid.East/Africa
5.2
Latin America
4.9
2007 AMA Sustainability Survey
Business ethics and integrity
Safe and healthy work environment
Affordable quality health care
Well-being of employees
Clean water
Importance of Sustainability Issues
You Personally
4.8
4.7
4.7
4.6
4.4
Your Company
4.5
4.3
4.0
3.9
3.7
Rank
1 2
3
4
5
13
14
15
16
17
Climate change
Epidemics
Diverse ecosystem
Open immigration
World population growth
3.9
3.8
3.8
3.4
2.4
3.1
3.4
3.1
3.1
2.9
Mean response on a 5-point scale
2007 AMA Sustainability Survey
Ensuring workers’ health and safety
Increasing workforce productivity
Improving image with shareholders and public
Effectively addressing regulatory restrictions
Enhancing innovation
Meeting expectations of investors and lenders
Attracting and retaining diverse top talent
Improving employee morale and engagement
Addressing challenges of the healthcare system
Providing goods / services that are good for the world
Today
1 2
3
4
5
6
7
8
9
10
In 10 Years
4 5
1
6
2
7
3
8
9
11
Factors Driving Key Business Decisions Today and in 10 Years
Rank out of 25 factors
2007 AMA Sustainability Survey
Lack of demand from consumers and customers
Lack of demand from managers and employees
Lack of awareness and understanding
Lack of standardized metrics or benchmarks
Lack of specific ideas on what to do
Lack of demand from shareholders and investors
Lack of demand from suppliers
Unclear or weak business case
Lack of demand from community
Lack of support from senior leaders
Rank
1 2
3
4
5
6
7
8
9
10
Mean
3.13
3.13
3.11
3.10
3.08
3.04
2.99
2.97
2.93
2.92
Factors Hindering Your Company from Moving toward Sustainability
Mean response on a 5-point scale
2007 AMA Sustainability Survey
Degree to Which Companies Value and Have the Qualities of Sustainable Enterprises
•2.8•3.9•Organizational integration
•2.9•4.0•Systems alignment
•2.9•3.9•Stakeholder engagement
•2.9•3.9•Metrics
•3.1•4.2•Values
•3.2•4.1•Centrality to business strategy
•3.3•4.4•Top management support
•Extent Company
Has These Qualities*
•Importance to Building a
Sustainable Enterprise*
•Qualities of a Sustainable Enterprise
*Mean responses on a 5-point scale, where 1 = not at all and 5 = to a very great extent.
2007 AMA Sustainability Survey
Top 12 Most Commonly Used Sustainability-Related Practices
• To what extent does your company have practices in place to do the following?
Mean Responses• Ensure the health and safety of employees 4.02• Ensure accountability for ethics at all levels 3.95• Engage collaboratively with community and non-governmental groups 3.47• Support employees in balancing work and life activities 3.35• Encourage employee volunteerism 3.29• Involve employees in decisions that affect them 3.28• Provide employee training and development related to sustainability 3.26• Reduce waste materials 3.14• Highlight our commitment to sustainability in our brand 3.12• Improve energy efficiency 3.06• Work with suppliers to strengthen sustainability practices 2.95• Get groups across organization that are working on sustainability-related • initiatives to work more closely together 2.85• *On a 5-point scale, where 1 = not at all and 5 = to a very great extent.
2007 AMA Sustainability Survey
Implementing Sustainability Strategies and Seeing Measurable Benefits
•2.88•3.19•2.56•... is your organization seeing measurable benefits from sustainability initiatives?
•2.99•3.33•2.65•...do you believe that your organization is implementing a sustainability strategy?
•All •Highest
Performers•Lowest
Performers•To what extent...
Copyright (c) 2008, Jeana Wirtenberg & Associates, LLC
Qualities of a State-of-the-Art Sustainable Enterprise
•Long-term, collaborative, “holistic” or systems-oriented mindset •Pursues a “triple bottom linetriple bottom line””•GGenerates or regenerates planet’s five capital stocks•Ethics-based business principles & sound corporate governance
Copyright (c) 2008, Jeana Wirtenberg & Associates, LLC
Qualities of a State-of-the-Art Sustainable Enterprise
continued
• Committed to transparency and accountability. • Gives stakeholders opportunities to participate in decisions that affect them• Uses its influence to promote meaningful systemic change among its peers, within its neighboring communities, and throughout its supply chain.
Six Dimensions of Mental ModelsSix Dimensions of Mental ModelsShort-term: Focus on deadlines, Immediate priorities, Sense of urgency
Time Orientation
Long-term: Vision and strategies, Potentials, Opportunities
Reactive: External drives, Prevailing rules and procedures
Focus of ResponsivenessCreative: Taking initiative, New approaches, Internal drives
Local: Focus on self or Immediate group, Competition Focus of Attention
Global: Whole organization, Inclusive, Ecumenical, Larger community
Separation: Either / Or, Specialization Prevailing Logic
Systems: Both-And, Holistic, Interrelationships
Systems: Both-And, Holistic, Interrelationships Problem Consideration
Learning: Understanding, Building on all types of experience
Doing / Having: Materialism, Greed, Cost effectiveness, Financial performance, Quantitative growth
Life Orientation
Being: Having enough, Self-realization, “Greater good,” Intangibles valued, Qualitative growth
Source: Copyright © 2006, John D. Adams. Used with permission.
Copyright (c) 2008, Jeana Wirtenberg & Associates, LLC
The Importance of Employee The Importance of Employee Engagement in SustainabilityEngagement in Sustainability
• Employee Engagement critical to sustainability according to managers
• 96% in employee survey prefer working for “successful company that also aspires to do good” (Willard, 2002)
• Companies with sustainability with sustainability record enjoy recruiting & retention record enjoy recruiting & retention advantage (advantage (Wirtenberg, Harmon, Russell, & Fairfield, 2007)
Copyright (c) 2008, Jeana Wirtenberg & Associates, LLC
Emerging Careers and Career Emerging Careers and Career Paths in Green EconomyPaths in Green Economy
• Microfinance in US and Developing Countries, especially for women owned businesses
• Carbon Trading, Reporting and transparency
• Socially Responsible Investing, Clean-tech investing and patents
• Corporate Social Responsibility, Corporate Citizenship
• Chief Sustainability Officers, Chief Responsibility Officers
• Environmental. Health & Safety (EH&S)
• Green Buildings (LEED)
• Greening Supply Chains
• Green Marketing - Sustainability Communications, Branding, and PR
• Human Resources, Organization Development & Change
• Greening every industry at all stages of life cycle:
o Extraction o Production o Distribution o Consumption o Disposal
Copyright (c) 2008, Jeana Wirtenberg & Associates, LLC
Three Scenarios for the Future of Sustainability
• Scenario One: Things fall apart Organizations give up on trying to be sustainable. Businesses just want to survive in
an increasingly anarchic world, plagued by global war for natural resources, especially oil and water.
• Scenario Two: Muddling toward sustainability At best a mixed bag and, at worst, an utter mess. Countries try to make global
agreements on everything: fisheries, global warming gases, water conservation, pandemics, global poverty. While these have symbolic value, they have no real teeth and are ultimately ineffective.
• Scenario Three: A Global Sustainability Culture A global sustainability culture has taken root. A cultural “tipping point” has been
reached. Factors shaping it were alarming scientific findings, changes in climate patterns, geopolitical conflicts, global media networks, innovations in the marketplace, success of “green” business. The confluence of these factors creates a “preservation mindset” or “global sustainability culture.”
Copyright (c) 2008, Jeana Wirtenberg & Associates, LLC
Conclusion• Today, the future remains uncertain…• Much depends on whether
– Business, government, NGO, academic leaders and managers in general, and
– High-performing companies, government, and industry leaders in particular,
continue to gain greater awareness of sustainability and choose to adopt sustainability-related values, strategies, principles, and practices.
Copyright (c) 2008, Jeana Wirtenberg & Associates, LLC
Call to action –Call to action –• What’s your commitment?What’s your commitment?• What are you willing to do to make an What are you willing to do to make an
impact personally and in your impact personally and in your organizations?organizations?