Andrew Winston, co-author of "Green to Gold", discusses sustainable business strategies and trends from 2008. Learn more about Sustainable Business & Design at: http://sustainablelifemedia.com
TRANSCRIPT
Green to Gold:Trends and Stories
Andrew WinstonWinston Eco-Strategies
Source: Green to Gold, Esty/Winston 2006
Regulators
NGOsBanks
Shareholders
Insurers
BusinessCustomers
CompetitorsSuppliers
CapitalMarkets
The Future (Kids)
Communities
Consumers
Rulemakers & Watchdogs
Business Partners
& Competitors
Consumers &Community
Investors & Risk
Assessors
“Plaintiff’sBar”
Politicians
IdeaGenerators& Opinion
Leaders
ThinkTanks
Academia
Source: Green to Gold, Esty/Winston 2006
Company
CEO Peers
EmployeesMedia
Industry Associations
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Presentation Notes
Today it’s much more complicated Yes, traditional players still there government stronger than ever in some ways (but more diverse – continent-level EU regulations, down to cities signing a Kyoto-like agreement) B2B customers exerting a huge force – Wal-Mart pushing suppliers to go green But story is also about new and growing powers…
Wal-mart toy initiative in Feb-May 08, “The initiative also encourages suppliers to mark children's products with "traceability information," including the factory in which the goods were made”; “limits for lead and a broad array of other heavy metals and chemicals”
Conflicted Employees The latest Adecco USA Workplace Insights Survey found that only 1/3 (33%) would be more inclined to work for a “green” company, despite all the recent attention on environmental issues.��Key findings from the survey:� A slight majority want their company to do more: About half of employed adults (52%) think their company should do more to be environmentally friendly. Only about 1 in 5 employed adults (22%) say their company already does enough or too much, while about one in four (26%) are just not sure. He said, she said: Employed men are more likely than their female counterparts to say they know their company’s environmental policy (35% men vs. 28% women). What’s your company’s policy?: While about 7 in 10 employed adults (69%) know that their company has an environmental policy, only about a third (32%) knows what that policy is. MONSTER TRAK Oct. 11, 2007 — Eighty percent of young professionals are interested in securing a job that impacts the environment in a positive way, and 92% say they'd give preference to working for a company that is environmentally friendly, according to a new report from career website MonsterTrak. The numbers from the survey were so compelling that MonsterTrack teamed up with research nonprofit ecoAmerica to launch GreenCareers, billed as the first environmentally responsible recruitment service. A division of online recruitment giant Monster, MonsterTrak serves college students and recent graduates in the market for a first job. Hill and Knowlton survey Jan 08 From my blog…Finally, to cap it off, 1 in 5 American MBAs -- and 42% and 38% in EU and Asia respectively -- would be inclined not to take an "attractive" job offer from a company with a poor environmental reputation. % saying extremely or very important Corporate governance and ethics.....................58 �Social responsibility/community involvement.....49 �Brand and marketing message........................48 �Environmental/green policy..............................34
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TXU – KKR Point is not that another company ‘saw the light’ – it’s that private equity, the most short-term, rapacious bunch, said this is about risk reduction and business value
Esty/Winston, Green to Gold, 2006
Ups
ide
Dow
nside
More Certain Less Certain
COSTS RISKS
REVENUES INTANGIBLES
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So how do companies add value with environmental strategy? Four big buckets we identified in the book On the reduction of downsides, two areas: cost – the traditional realm of environmental efforts – and risk On the upside, new revenues and enhanced intangible value Now new products creating new revenues are an obvious connection to sustainable innovation, but I would argue that sustainable “innovation” applies in all 4 areas….
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Most successful green product ever? MotorTrend Car of the Year (2004) Product is innovative on many levels – cool technologies inside and out, from GPS to backup camera, etc – fun to drive VALUE INNOVATION – 60% of buyers have NO 2nd choice Halo around company But points out that sustainable innovation is hard – took many years
Phase 3+: take advantage of new markets, but maybe just dress it up Moving into deeper phases Things are generally looking up… 5 indications of much more sustainable innovation coming down the road Innovation in the service of sustainability is on the march…
GreenwashingSix Sins of GreenwashingTM
• Trade off – narrow claims• No proof• Vagueness – poorly defined• Irrelevance – not important• Fibbing • Lesser of two evils
28,500,000 miles3,000,000 gallons
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Lovell reports that UPS lopped off some 28.5 million miles from its delivery routes last year thanks to the software, saving 3 million gallons of fuel and cutting carbon dioxide emissions by close to 69 million pounds.
