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Sustainability Corporate Roadmap Bruce Starcher. 2010. Why Sustainability?. 93% of CEOs believe that sustainability issues will be critical to the future success of their business. UN Global Compact-Accenture CEO Study 2010
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Why Sustainability? 93% of CEOs believe that sustainability issues will be critical to the future success of their business. UN Global Compact-Accenture CEO Study 2010 Electrification, the rise of mass production, globalization and the quality movement of the 70’s and 80’s were megatrends; Sustainability is an emerging megatrend. David Kubin, Daniel Esty, The Sustainability Imperative, HBR May 2010 In 2009, Corporate Responsibility Magazine reported that in the first nine years of its Best Corporate Citizens list, the 100 Best Sustainability companies have outperformed the Russell 1000 by 26%. There are many reasons why corporations have embarked on Sustainabilityjourneys. In the early days, the motivations were driven by doing good, doing the right thing. Sustainabilitywas managed as a separate activity. More recently, Sustainabilityhas begun to be integrated into daily operations and the focus has clearly shifted towards the impact on the brand, trust and reputation and towards revenue growth, cost and risk reductions, together with improved efficiencies.
Sustainability Value Drivers A number of studies have been conducted to demonstrate the link between Sustainability programs and improved financial performance, as measured by stock price.
Sustainability Structure Executive Audit Compensation Governance Sustainability • Engaging in a corporate wide program requires a structure that will lead to success. In order to assure alignment at the highest level, a Sustainability Council is created to provide strategic input, guidance and a link to the corporate strategy. - Strategy Oversight and Guidance CEO Sustainability Council Board Committees Sustainability Lead Community of Practice - Leadership, Alignment, Coordination • Local Management and Program Execution • - The community of practice is a forum for knowledge management, expertise and collaboration and NOT a parallel organization
Sustainability Maturity Source: Simon Zadek, “The Path to Corporate Responsibility”
Responsible Product The first platform speaks to the core of our business – our products. We want to evolve from simply meeting our externally mandated / legal and safety requirements and move towards providing ethical products – products that do the right thing for our stakeholders. I am following the law I will not harm the environment I will do the right thing for our stakeholders I will not harm our consumers I will meet this generation’s needs but not at the expense of tomorrow’s generation
Minimal Waste Zero Waste is an inspiring and achievable long term vision and closely resembles the TQM mantra of zero defects. It focuses on redesigning systems and process for a total product lifecycle. Waste represents costs, both to our shareholders and to our environment. The approach is an iterative one based on setting a set of goals and then educating, assessing, prioritizing, auditing, identifying potential actions, implementing, reporting and then repeating the process until the goal is achieved. Waste as a resource Discard into the natural environment. Litter, dumping, burn barrels Capture useful material for waste to energy program; saves energy and CO2 in the long term. Previously discarded items have value in another process or company Buy less and use less High temperature destruction of material Discarded items are separated into materials that can be used again
Climate & Energy Carbon is the common denominator for all energy sources. Whether you believe that carbon is a contributor to global warming or not, we do know that the byproduct of carbon based processes are pollution and growing costs. As we understand and track our carbon footprint over time, we will be able to set aggressive goals to pursue with both environmental and economic benefits.
People COMMUNITY Employee Volunteerism Community Engagement Corporate Philanthropy Economic Impact Brands exists because of people - our employees, our partners’ employees and the communities in which we operate. EMPLOYEES Purpose Employee Engagement Diversity Human Rights Total Rewards People development Work-Life programs Health, safety and wellness SUPPLY CHAIN RESPONSIBILITY Integrate Sustainability in sourcing operations Supplier social and environmental responsibility NGO Collaboration Transparency Supplier Diversity
Governance Governance focuses on “how” we lead Sustainability across the organization and beyond. These are topics that require leadership and change management to affect how conducts business. GOVERNANCE Metrics and Measurement Change Management Sustainability Assessments Sustainability Program Management
The Business of Sustainability Customer Consumer How do all these pieces fit together – from Sustainability Objectives to Functional strategies? Over time, we will be moving from a project driven structure to a structure where Sustainability is integrated into each function and business. To be among the industry leaders in Corporate Social Responsibility Objective Cost and environmental impact reductions across products and processes Strategy Offering Product Packaging Post Sales Category Specific Attributes Charac- teristics Operations Minimal Waste Minimal Material Waste Minimal Process Waste Reduce, Reuse, Rethink,… Climate and Energy Carbon Management People Responsible Supply Chain Community Employees Governance Metrics and Measurement Change Management Sustainability Program Management Brand Vision Brand Marketing Sales R&D Supply Chain Compliance Finance HR Communi- cations Investor Relations Functional Strategies Sustainability Governance
