Success Through Sustainability Sustainability, what is it and what’s in it for engineers?

1. Success Through Sustainability Sustainability, what is it and what’s in it for engineers? Presented by John Harrington March 3, 2011

2. Today is about.. • Understanding Sustainability • Discussing the key issues • A framework to structure your approach • What it means for your and your business • Getting started - 4 steps, 3 questions, 7 derailers • Examples of best practice / products • Applying what we learn together • Commitment - one thing you’ll change… • Leadership

3. Success Strategic Action Tools

4. Introductions… Name Job Title Why you’re here

5. RealEyes Sustainability Ltd. • Help organisations benefit from sustainability • Training, Auditing, Facilitation, Consultancy • The Real voyage of discovery lies not in finding new lands, but in seeing with fresh Eyes.Marcel Proust

6. TheNaturalStep (TNS) Not for profit organisation established in 1988 by oncologist Karl Henrik Robert Now global with partners in 30 countries Nike, Ikea, Panasonic, ICI, Interface, Scandic Hotels 100’s municipalities in Sweden, US, Japan, Italy, France, Canada, and Ireland To develop and share a common framework which centres on easily understood, scientifically based principles that can service as a compass to guide society toward a sustainable future

7. Leading Companies

8. Why Sustainability ?

9. Engineering… • The application of science and mathematics by which the properties of matter and the sources of energy in nature are made useful to people • www.merriam-webster.com/dictionary/engineering • Scale? • Time period ?

10. Sustainable Development • .. development that meets the needs of the present without compromising the ability of future generations to meet their own needs • Meet human needs within environmental limits

11. The concepts and principles of sustainable development place a burden on the engineer, a burden to change the way we do business Jose Medem Sanjuan, president of WFEO World Federation of Engineering Organisations

12. Business as Usual Model

13. Take, Make, Waste 6% Product Raw Materials 94% Waste 80% of products discarded after a single use Therefore, 99% of the original materials used in the production of, or contained in, the goods made in the US become waste within 6 weeks Source: NAE / Factor 4

14. Sustainability is… Think about… • Key issues - for your business and you personally • Risks and opportunities • Hard and soft stuff

15. Slide 15

16. Fourth Assessment Report……. a summary CO2 levels at their highest for 650,000 years. Climate change “unequivocally” happening, and 90% certain that it’s due to man-made emissions. “Best guess” indicates global temperature will rise by 1.8°c to 4°c by 2100. Worst case “up to 6.4°c”. Policy responses geared to hold temperature increase below 2°c. 450 ppm CO2 emerging as new consensus figure. 386.80 ppm in September 2010 10-15 years to put in place serious measures to start reducing emissions of CO2. Slide 16

17. Stern Review

21. Energy Use in Ireland • Fossil Fuel accounted for 96% of all energy use in Ireland in 2007 • 60 million barrels of oil equivalent • We import almost 90% of our primary energy demands • €6B on energy imports

22. Sunday April 11 2010 US military warns oil output may dip causing massive shortages by 2015 Slide 24

26. Resource scarcity

27. One kg of grain-fed beef needs at least 23,000 litres of water Slide 30

29. Undervalued Biodiversity

30. Philippe Rekacewicz, UNEP/GRID-Arendal

31. Percent Increase in Nitrogen Flows in Rivers Source: Millennium Ecosystem Assessment Slide 34

32. Hurricane Katrina • $110 Billion • 15 million people affected in 7 states • 1,836 people killed • Category 4 and 5 hurricanes have almost doubled in the last 30 years • Key natural defences destroyed - mangroves

33. 8,194,797 Tons of toxic chemicals released by industries this year • 310 Kg of toxic chemicals released every second • 10 million tons released into our environment each year • Of these, over 2 million tons are recognized carcinogens • 65 Kg or carcinogens each second

34. Source: pan-uk.org

35. Harvest peak Pre-peak Fisheries peaking Slide 38 Source: Millennium Ecosystem Assessment and Sea Around Us project

37. CEO Study • 93% of CEOs believe that sustainability issues will be critical to the future success of their business. • 88% of CEOs believe that they should be integrating sustainability through their supply chain.

38. Sustainability Continuum 5. Purpose/PassionValues-driven founder / CEO 4. Integrated StrategyEnhanced business value 3. Beyond Compliance Eco-efficiencies PR crisis / Opportunity Regulatory threat 2. ComplianceRegulatory enforcement 1. Pre-Compliance Source: Adapted from Bob Willard’s Sustainability Advantage 5-Stage Sustainability Journey

39. Sustainability = Profitability • Potential profit increases from integrated sustainability strategies: • Large organisations potential for +38% increase • Small to medium organisation +66% increase • source Bob Willard, The Business case for sustainability, 2008)

40. Employee engagement • First choice for top talent • Employee productivity • Low rates of attrition • Customer loyalty • Lower churn • Attract new customers Attract and Retain Talent • Reputation • Value for money • Trust, quality, respect • Credibility • Easier to enter new markets • More sources of funding Revenue Growth Pricing Power Cost Savings New Market Entry Market Share • Operational efficiencies • Efficient use of resources • Supply chain optimisation Margin Sustainable Organisation Benefits Source: Business Case for Sustainability, Boston Consulting Group

41. 19812007 80% 20% Tangibles Financials 20% 80% Intangibles Non-financials Brand image/Reputation Stake holder relationships (investors, media, public, customers, banks, govern- ments, insurers, scientists employees) Change in Organisational Value Drivers

42. Exposure

43. Source: MIT Sloan Management Review ‘The Business of Sustainability, findings and insights from the first annual business of sustainability survey and global thought leaders report’ 2009

44. Strategies, Policies and Plans • National Climate Change Strategy, 2007-2012 • National Energy Efficiency Plan 2009 - improve energy efficiency by 33% • National Heritage Plan - 2002 • National Biodiversity Plan - 2002 • EU voluntary target of 50% GPP • National Action Plan on Green Public Procurement (draft) 2010 • Framework for Climate Change bill - 80% reduction in net emissions on 1990 levels, 3% per annum until 2020 • Carbon Tax • Smarter Travel - A Sustainable Transport Future - A new transport policy for Ireland 2009 - 2020

45. Which Tool?

46. Sustainable Procurement

47. Green Procurement

48. “For years, the statistics have registered an increasingly strong economic growth as victory over shortage, until it emerged that this growth was destroying more than it was creating”. Nicolas Sarkozy, 14/9/09

49. Flooding Poverty Water Scarcity Obesity Energy Climate Change Waste Toxicity Food Security Loss of Biodiversity EconomicGrowth

50. Sustainability is not about addressing climate change, water shortage, energy transport or any other single issue. It's about solving these challenges using an integrated approach from strategy development to technical consulting to project implementation - Lee McIntire, Chairman and CEO, CH2M HILL