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Sustainability

Sustainability training presentation.

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Sustainability

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  1. SUSTAINABILITY Balancing the Environment, Equity & Economy © Operational Excellence Consulting. All rights reserved.

  2. NOTE: This is a PARTIAL PREVIEW. To download the complete presentation, please visit: https://www.oeconsulting.com.sg LEARNING OBJECTIVES Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations. 2 © Operational Excellence Consulting

  3. CONTENTS 02 03 04 01 INTRODUCTION & KEY CONCEPTS PRINCIPLES & PRACTICES MEASURES & REPORTING IMPLEMENTATION & BEST PRACTICES 3 © Operational Excellence Consulting

  4. $1 T worth of all food produced each year ends up rotting in the bins of consumers and retailers, or spoiling due to poor transportation and harvesting practices. 4 Source: United Nations Global Compact © Operational Excellence Consulting

  5. The best way to predict the future is to create it. Peter Drucker 5 © Operational Excellence Consulting

  6. PROJECTED GROWTH IN POPULATION & RESOURCE DEMANDS BY 2050 With 9.7 billion people on the planet by 2050, we can expect a 54 percent increase in global food demand and 56 percent increase in energy demand. 6 Source: The Nature Conservancy © Operational Excellence Consulting

  7. OVERVIEW OF GLOBAL SUSTAINABILITY TRENDS Biodiversity Conservation Climate Change Mitigation Sustainable Supply Chains Circular Economy Efforts to protect ecosystems and promote sustainable land use. Shift towards renewable energy, carbon pricing, and climate-resilient infrastructure. Focus on ethical sourcing, transparency, and fair labor practices. Emphasis on waste reduction, recycling, and product lifecycle management. 7 © Operational Excellence Consulting

  8. SOME FACTS ABOUT SUSTAINABILITY 78% 74% 66% Companies agree that sustainability is vital to the future of their business Respondents cited cost reduction as the principal driver of their company’s sustainability agenda Sustainability executives report an increase in inquiries from shareholders and investors regarding sustainability-related issues 62% 51% 70% Companies cited consumer demand is the primary driver of investment in sustainable initiatives Billion-dollar companies in the U.S. are implementing renewable energy integration and procurement strategies Companies say they have a dedicated budget for energy efficiency programs 8 Sources: Accenture, E&Y, Carbon Disclosure Project © Operational Excellence Consulting

  9. MINDSET OF A NON-SUSTAINABILITY THINKER “A PR project to enhance the company image.” “Impact of our effort will be so low it won’t even move the needle.” “It only has to do with Marketing and Operations.” “Let’s leave it to others to do it.” 9 © Operational Excellence Consulting

  10. WHAT IS SUSTAINABILITY? Circular Economy? Climate Change? Conservation? Green? Eco-friendly? Renewable Energy? Sustainable Growth? A Population Problem? Better Use of Technology? Regeneration? Grassroot Activism? 10 © Operational Excellence Consulting

  11. WHAT IS SUSTAINABILITY? Sustainability first operates under the assumption that resources are finite ● Since resources will not last forever, sustainability attempts to meet present-day needs in such a way as to not compromise resources for future generations ● When making use of resources, we should contemplate long-term goals and the consequences of reaching those goals ● 11 © Operational Excellence Consulting

  12. OECD DEFINITION OF SUSTAINABILITY Sustainability refers to: a. use of the biosphere by present generations while maintaining its potential yield (benefit) for future generations; and/or b. non-declining trends of economic growth and development that might be impaired by natural resource depletion and environmental degradation. 12 Source: OECD © Operational Excellence Consulting

  13. THE THREE PILLARS OF SUSTAINABILITY – BALANCE BETWEEN THE ENVIRONMENT, SOCIETY & ECONOMY ENVIRONMENTAL A viable natural environment SUSTAINABLE DEVELOPMENT SOCIAL ECONOMIC Nurturing community Sufficient economy 13 © Operational Excellence Consulting

  14. WHY IS SUSTAINABILITY IMPORTANT? New Growth Opportunities Positive Business Results Improve Corporate Reputation Green Investment & Societal Development Sustainability is not only essential in order to prevent negative global changes but also offers opportunities in new areas of growth. A reasonable degree of sustainability in business is usually responsible for improved productivity, lower debts, equity, and better financial condition. Most reputable businesses believe that sustainable business strategies improve the company’s mission, reputation, and customer reviews. Sustainability is seen as a necessary component in business; investors keep in mind the company’s environmental protection and community development efforts. 14 © Operational Excellence Consulting

  15. EXAMPLES OF SUSTAINABLE DEVELOPMENT Sustainable Construction Wind Energy Solar Energy Crop Rotation Sustainable Transportation Efficient Water Fixtures Sustainable Forestry Green Space Community Food Forest Hydropower Sustainability Water Recycling Sustainable Fishing 15 © Operational Excellence Consulting

  16. EXAMPLES OF SUSTAINABILITY IN BUSINESS CORPORATIONS (1/3) Walmart McDonald’s Chr. Hansen § Cut fuel usage for Wal-Mart’s fleet of trucks to lower carbon emissions and also lower fuel costs by re-routing trucks, and use of turn-loading pallets § Only source chickens in the U.S. not treated with antibiotics important to human medicine § Company focuses its sustainability efforts on contributing to the United Nations’ Sustainable Development Goals (SDGs) § Seven classic burgers have no artificial preservatives, no artificial flavors and no added colors from artificial sources § Has their own private staff meteorologist tracking hurricanes and stocked up nearby distribution centers outside the path of the hurricanes to quickly resupply stores after the hurricane Source: Operational Excellence Consulting Research § As a result, 82% of the company’s revenue contributes to targets like increasing food yields, reducing food waste and phasing out antibiotics in animal production § Committed to only source cage- free eggs by 2025 in U.S. and Canada 16 © Operational Excellence Consulting

  17. UNGC: THE TEN PRINCIPLES HUMAN RIGHTS ENVIRONMENT Principle 1 Businesses should support and respect the protection of internationally proclaimed human rights. Principle 7 Businesses are asked to support a precautionary approach to environmental challenges. Principle 8 Undertake initiatives to promote greater environmental responsibility. Principle 2 Make sure that they are not complicit in human rights abuses. Principle 9 Encourage the development and diffusion of environmentally friendly technologies. LABOUR ANTI-CORRUPTION Principle 3 Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining. Principle 10 Businesses should work against corruption in all its forms, including extortion and bribery. Principle 4 The elimination of all forms of forced and compulsory labor. Principle 5 The effective abolition of child labor. Principle 6 The elimination of discrimination in respect of employment and occupation. 17 Source: Adapted from U.N. Global Compact © Operational Excellence Consulting

  18. DUAL GOALS OF SUSTAINABLE DEVELOPMENT ? To promote the kind of development that minimizes environmental problems To meet the needs of the existing generation without compromising the quality of the environment for future generations 18 © Operational Excellence Consulting

  19. LEAN THINKING APPROACH: CONTRIBUTING TO SUSTAINABILITY THROUGH WASTE ELIMINATION OVER-PRODUCTION Producing more than what the customer needs WAITING Employees waiting for another process or a machine/tool INTELLECT Not using employees’ full intellectual contribution MOTION OVER-PROCESSING Adding excess value when the customer does not require it Extra physical or mental motion that does not add value Wastes DEFECTS Reprocessing or correcting work TRANSPORTATION Moving product from one place to another INVENTORY Building and storing extra products the customer has not ordered 19 © Operational Excellence Consulting

  20. DESIGN THINKING APPROACH: ENHANCING SUSTAINABILITY THROUGH INNOVATION AND CREATIVE PROBLEM SOLVING EMPATHIZE IDEATE DEFINE PROTOTYPE Learn about the audience for whom you are designing, by observation and interview. Who is my user? What matters to this person? TEST Brainstorm and come up with as many creative solutions as possible. Wild ideas are encouraged! Build a representation of one or more of your ideas to show to others. How can I show my idea? Remember: A prototype is just a rough draft! Create a point of view that is based on user needs and insights. What are their needs? Share your prototyped idea with your original user for feedback. What worked? What didn’t? 20 Source: Adapted from Stanford d.school © Operational Excellence Consulting

  21. FOCUS ON SUPPLY CHAIN SUSTAINABILITY Supply Chain Planning Sourcing & Procurement Logistics & Warehousing Manufacturing § Network design § Supplier diversity § Supplier risk/ sustainability § Carbon emissions § Water and other pollution § Electricity usage § Carbon emissions § Fuel § Routing End-to-End Supply Chain 21 © Operational Excellence Consulting

  22. SUSTAINABLE LIVING MADE SIMPLE: EVERYDAY CHANGES FOR A BETTER TOMORROW Choose Sustainable Billing Options Use Sustainable Products Make Transportation Adjustments Choose Sustainable Food & Beverages § Go paperless § Deliver bills to your email § Choose brands that use recycled plastics or materials § Replace fluorescent tubes with LED bulbs § Use an electric car, cycle or walk § Opt to carpool § Drive coworkers and friends § Choose sustainable food manufacturers § Shop at local farmers markets Choose Reusable Products Cut Down on Plastic Recycle Save Water § Use reusable bottles, grocery bags and food storage containers § Avoid plastic-made products § Use reusable grocery bags § Use the recycle bins provided in or near your homes and businesses § Take shorter showers § Install water-saving shower heads or flow restrictors 22 © Operational Excellence Consulting

  23. WHAT IS THE TRIPLE BOTTOM LINE (TBL)? The Triple Bottom Line is a business concept that posits firms should commit to measuring their social and environmental impact—in addition to their financial performance—rather than solely focusing on generating profit, or the standard “bottom line.” It can be broken down into “three Ps”: profit, people, and the planet. 23 Source: Harvard Business School Online © Operational Excellence Consulting

  24. COMPARING TRIPLE BOTTOM LINE (TBL) AND ESG METRICS Environmental, Social, and Governance (ESG) Aspect Triple Bottom Line (TBL) Focus People, Planet, Profit Environmental, Social, Governance Purpose Holistic assessment of business impact Investment decision-making and corporate performance Origin Conceptual framework from the 1990s Reporting framework gaining traction in the 2000s Metrics Broad qualitative and quantitative metrics Specific, standardized metrics for reporting Application Internal business strategy and sustainability reporting External reporting for investors and stakeholders Adoption Used by businesses to guide sustainable practices Widely adopted by investors, regulators, and companies 24 © Operational Excellence Consulting

  25. GLOBAL REPORTING INITIATIVE (GRI) – OVERVIEW Established in 1997: Pioneering sustainability reporting standards. ● Mission: Promote transparency and accountability in corporate sustainability. ● GRI Standards: Comprehensive framework to measure, manage, and communicate ESG impacts. ● Global Use: Thousands of companies report their sustainability performance using GRI Standards, demonstrating commitment to responsible business practices. ● 25 © Operational Excellence Consulting

  26. SPECTRUM OF SUSTAINABILITY: FROM CONVENTIONAL TO REGENERATIVE Reduced energy and materials required, some environmentally friendly practices. Energy and materials use decrease, actively repairing or replenishing environmental damage. CONVENTIONAL SUSTAINABLE RESTORATIVE REGENERATIVE GREEN Traditional approach. High energy and materials required, environmentally harmful practices. Balance between energy/materials use and conservation, meeting current needs without compromising future generations. Holistic approach. Minimal energy and materials required, actively contributing to environmental health and biodiversity. 26 © Operational Excellence Consulting

  27. CORPORATE SUSTAINABILITY IMPLEMENTATION MODEL: FOUR PHASES, EIGHT STEPS 1 8 Continuous Improvement Commitment & Vision Monitoring & Improvement 2 Vision & Assessment Monitoring & Reporting Assessment & Benchmarking Corporate Sustainability Implementation Model Corporate Sustainability Implementation Model 7 3 Implementation Strategy Development Engagement & Implementation Strategy & Planning 6 Stakeholder Engagement Action Plan 4 5 27 © Operational Excellence Consulting

  28. INTEGRATING SUSTAINABILITY INTO BUSINESS OPERATIONS Definition: Incorporating sustainability principles into decision-making processes, product development, and daily operations ● Importance: Enhances long-term value, reduces risks, and promotes responsible business practices ● Examples: Designing products with recycled materials, optimizing energy use in operations, and sourcing from sustainable suppliers ● 28 © Operational Excellence Consulting

  29. DRIVING SUSTAINABLE SUCCESS: BEST PRACTICES IN CORPORATE SUSTAINABILITY Transparency Collaboration Stakeholder Engagement Innovation Providing transparent and accurate reporting on sustainability performance to build trust with stakeholders. Partnering with other organizations, NGOs, and governments to address sustainability challenges collectively. Investing in sustainable technologies and practices to drive business growth and environmental stewardship. Engaging with stakeholders to understand their sustainability priorities and expectations. 29 © Operational Excellence Consulting

  30. ABOUT OPERATIONAL EXCELLENCE CONSULTING Operational Excellence Consulting is a management training and consulting firm that assists organizations in improving business performance and effectiveness. Based in Singapore, the firm’s mission is to create business value for organizations through innovative design and operational excellence management training and consulting solutions. For more information, please visit www.oeconsulting.com.sg © Operational Excellence Consulting

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