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Ligia Coelho Martins

24 July 2013

Empowering Sustainability on Earth 2013

Presentation at the UCI

Some Views on the Implementation of Organizational Sustainability

NORMAN DE PAULA ARRUDA FILHO

OVERVIEW

1.  Organizational Sustainability 2.  Organizational Challenges 3.  Behind the CS 4.  Organizational Sustainability


Organizational Sustainability

Corporate Sustainability (CS)

became a strategic way of doing business to create a company that

fosters longevity thru long-term relationships with its stakeholders

(consumers, employees, suppliers, government, society).



Society Expectations?

1) Should be ethical with its stakeholders 2) Must consider the social and cultural

aspects and impacts of its business activities

3) Must reduce and incorporate the environmental costs of its activities


•  All of these should be met without losing profitability, since financial balance is part of the CS equation.



Organization’s Challenges

•  Ethical and respectful of people and planet

•  Profitable •  Able to survive in this wild

Business World •  Global Challenge:

– Reduce GHG Emissions as Much as Possible


– Companies can’t be REALLY sustainable/clean

– Sustainability isn’t profitable



•  Companies DON’T know the most effective ways to implement sustainability strategies and practices, which doesn’t help to capitalize on sustainability.

•  Companies are choosing initiatives for fast-win, with direct commercial benefits. It can be very superficial.


Forbes article by Mr. Bhattacharya


•  Most companies are not doing sustainable or responsible business because they are ethical or because its strategic motive, but because IT SELLS.

Behind the Organization Sustainability


Is about cutting costs and efficiency •  reducing waste •  selling recyclable components •  reusing byproducts (rubber or plastic) to create new products For large organizations, this means millions of dollars in annual savings.

ORGANIZATIONAL SUSTAINABILITY


National Public Policies

• Austria, Belgium, Brazil, Bulgaria, Cyprus, Denmark, Estonia, Finland, France, Germany, Ireland, Italy, UK, USA, Sweden, Netherlands and others

• Denmark: 1,100 largest companies, investors and state-owned companies ought to include information on corporate social responsibility (CSR) in their annual financial reports.

POLICIES AND REGULATIONS


•  According to the Reputation Institute’s 2011 “Pulse Survey,” CS is responsible for more than 40% of a company’s reputation.

•  More than 5,500 companies issued sustainability reports in 2012 in contrast to only 800 companies a decade ago.

CONSUMERS’ INTEREST


•  The traditional Stock Market grew only 7.4% against 16.39% of stock options on Sustainability Indexes (2012)

•  American consumers doubled their spending on sustainable products and services to an estimated $500 billion per year

•  Wal-Mart attributed more than $100 million of its 2009 revenue to a recyclable variety of cardboard in shipments to its 4,300 stories in the US

CORPORATE SUSTAINABILITY IS PROFITABLE


CORPORATE SUSTAINABILITY IS PROFITABLE

•  Wal-Mart uses in building new stores recycled plastic scraps leftover from producing Wal-Mart diapers

•  Shaw has collected 300 million pounds of used carpet in the last three years and reused 85 percent of it.


Companies can be Earth-and–Profit Friendly.

EARTH


HOW TO START?

ORGANIZATIONAL SUSTAINABILITY

•  We need new ways to think, to manage and to work on processes and procedures

WHEN TO START? •  No need for new or big structures

• To take in consideration an amplified scale of questions


1. Organizational Governance

The LEADERS must understand the meaning of sustainability

2. Core Business

Integrate the subject on the core business: Mission, Vision and Principles

3. Inventory of Activities

List of activities, procedures and policies, including suppliers activities. Identify the stakeholders.

How to integrate Responsibility/Sustainability into an organization?


4. Develop a Plan Create a plan to redesign the processes and

policies taking into consideration sustainability principles. Communicate with stakeholders. Plan must be realistic, comprehensive, integrated, objective (goals, performance indicators and timeframe).

5. Measurement System

Measure the company accomplishments and commitment.

How to integrate Responsibility/Sustainability into an organization?


• ISO 26000 • United Nations Global Compact • Dow Jones Sustainability World Index • Green Tax Policies • Cradle to Cradle Certification • Sustainability Reporting: is an organizational report that gives information about economic, environmental, social and governance performance

POLICIES AND REGULATIONS


Conclusion

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