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SUSTAINABILITY IN WISCONSIN

SUSTAINABILITY IN WISCONSIN. Tom Eggert - Business, Environment & Social Responsibility Program WI School of Business - WI Sustainable Business Council - Bureau of Cooperative Environmental Assistance WI DNR Thomas.eggert@wi.gov. Sustainability Trends: 2010 – 2011.

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SUSTAINABILITY IN WISCONSIN

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  1. SUSTAINABILITY IN WISCONSIN Tom Eggert - Business, Environment & Social Responsibility Program WI School of Business - WI Sustainable Business Council - Bureau of Cooperative Environmental Assistance WI DNR Thomas.eggert@wi.gov

  2. Sustainability Trends: 2010 – 2011

  3. The Importance of Tracking Trends We can learn from the past, but we can’t be successful living there There is often more risk in maintaining the status quo than in changing This moment in history really might be unique in that our systems have largely been upset and much greater change is possible.

  4. From economic collapse to a green economic recovery About 34 percent of people are now more likely to buy environmentally responsible products and 44 percent of consumers indicate their environmental shopping habits have not changed as a result of the economy (Cone Consumer environmental survey 2009) Venture capitalists and corporate investors invested $4 billion in green start-ups and the Dept of Energy has allocated $36.7 billion to energy efficiency and alternative energy projects in 2009.

  5. From energy excess to energy efficiency The July 2008 edition of The McKinsey Quarterly estimated that $170 billion a year will be invested in energy efficiency between now and 2020, which could halve forecasted growth in global energy demand. The International Organization for Standardization (ISO) is planning to create an energy management standard (ISO 50001) by 2011.

  6. From energy efficiency private standards to legal requirements The European Energy Performance in Building Directive (EPBD) [this would be a rule in the US] is now finalized. The USGBC, in conjunction with ASHRAE and DOE, is developing a LEED energy performance standard for the US. These will outline standards for calculating energy consumption and energy audit methodologies

  7. From commercial energy efficiency to residential energy efficiency Legislation in the United Kingdom will require an energy efficiency rating to be published for homes advertised for sale beginning in 2012. The legislation will effectively put a green, amber, or red energy efficiency grade on every “For Sale” sign in the UK, helping the government in its plans to reduce household carbon emissions by 29% by 2020.

  8. From environmental sustainability to embedded sustainability In 2010 we will see stronger links between sustainability and well-being. The UN Development and Happiness Index, and the Genuine Progress Index integrate human well-being and environmental impact. The credibility of these indices will continue to increase, with the $200 billion Lifestyles of Health and Sustainability (LOHAS) market expected to double by the end of 2010 (from 2008 levels) and quadruple by 2015, according to the Natural Marketing Institute

  9. From carbon confusion to carbon regulation California’s stringent carbon dioxide reduction law requires 1990 emission levels be reached by 2020. The US EPA issued their endangerment finding in December, 2009, paving the way for regulating CO2 and requiring reporting on CO2 emissions starting in 2011.

  10. From cheap to costly carbon European taxes on carbon emissions for new cars are increasing. In late November, 2009, the state of California announced plans to charge businesses 16.5 cents per metric ton of greenhouse gas emissions. The rule will be implemented starting late 2010. The industries which will be the most affected include major refineries, cement factories and power plants but even other businesses like auto shops, restaurants and coffee roasters will feel the impact of the rule.

  11. From carbon trading doubt to carbon market development Point Carbon’s Market Outlook expects the global carbon offset market to grow 20 percent in terms of volume in 2010. They forecast that 5.9 gigatons (Gt) of carbon dioxide equivalent (CO2e) will trade this year, compared to 4.9 Gt in 2008. The Chinese announced in summer, 2010, that they will be developing a carbon cap and trade program.

  12. From fossil fuels to renewables According to Morgan Stanley’s Green Market Penetration forecast (2007), the renewables trend is going to continue developing; revenue from alternative energies could top $500 billion in 2020 and world-wide sales from alternative energy sources could reach $1 trillion by 2030. The hottest investment sector for Venture Capitalists is CleanTech and Alternative Energy, with over $4 billion flowing into the sector in 2009.

  13. CleanTech investments According to the head of Deutsche Asset Management, his bank is making CleanTech investments in China, in Europe, in Korea, but not in the US because of the continued regulatory uncertainty in this country. The Chinese government has developed policies to support a boom in private sector investments in clean technology, while here at home Congress fails to advance any meaningful legislation.

  14. Renewable wind energy In 2009, during one of the worst financial crises in recent history, the wind market grew 39%. The industry installed over 10,000 MW of new wind power facilities in 2009.

  15. From carbon reduction to carbon neutral Kohl's Department Stores has committed its U.S. stores, distribution centers and corporate offices to operate with net-zero greenhouse gas emissions by the close of 2010.

  16. From carbon-centric to water-centric About 2.6 billion people have no access to clean water (FairHome 2008), a problem not isolated to developing countries. This has pushed water issues up the environmental agenda, and will become a new focus for 2010-11.

  17. From regulatory programs to leadership programs The majority of the Fortune 500 now voluntarily produce a sustainability report. 70% of the 100 largest companies in WI have a sustainability strategy and 70% have an identified executive champion. Programs like Green Masters and Green Tier appeal to companies regardless of size, sector or location, and exist in over a dozen states

  18. From trash to treasure Trash is being looked at as a new, less expensive feedstock. People are now opting to reuse, resell, donate or recycle old goods. Millions of us sell used goods on Ebay, which has recently launched “green team” and “world of good” websites to help users buy, sell and think green

  19. From knowing your business to questioning what business you are in How much of Starbuck’s success is due to their mission: “to inspire and nurture the human spirit”? Why does Ford CEO Bill Ford talk about being in the transportation business, as opposed to the car manufacturing business?

  20. From printed papers to digital development the development of online videos, social networks and podcasts highlight the impact of the digital marketing space. Brands will increasingly use social media to communicate with consumers. The brands that win, will be those whose consumers tell the best stories. It’s no longer a one-way narrative, it’s about a two-way conversation.

  21. From offline to online Consumers can find information about anything, anytime, and they are actively seeking information about the brands with which they interact. It is going to be increasingly important for brand image to match company behavior.

  22. From telling to engaging Issuing a press release or finding a reporter to write a story will be replaced by two way dialogue with stakeholders. The influence of “word of mouth” has never been more relevant than in today’s world of blogs, tweets and Facebook.

  23. From regulating to relating State environmental regulatory agencies are developing beyond compliance programs to supplement traditional regulatory programs. In many businesses, environmental (and social) performance is being driven by customer pressure, investor pressure, supplier pressure, or the pressure to find and hire the best and brightest.

  24. Green Masters ProgramThe Green Masters program is an objective, points based certification program that will allow businesses of any size and from any sector to understand what needs to be done to justifiably claim that they are “on the road to sustainability.” The program was launched at the WI Sustainable Business Council Conference in December, 2009, and the first cohort of companies will be announced at the 2010 conference.

  25. Sustainability Areas Energy Climate Change Water Waste Management Transportation Purchasing Natural Resources Educational Outreach Systematic Evaluation of your Business Addressing Social Stratification

  26. Conclusion The world is changing and the market is changing What starts in Europe almost always makes its way to our shores There will be winners and losers Green is here to stay

  27. Thank you! Tom Eggert Green Tier Program, WI DNR Business, Environment & Social Responsibility Program WI School of Business Thomas.eggert@wi.gov

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