Why businesses should care about sustainability?

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CAp40 Business Wednesday Conference with Alexandre Lemille 27 years have passed since the Brundtland Commission where we agreed that sustainable development was about meeting the needs of the present without compromising the ability of future generations to meet their own needs. Today more than ever we need to change gears. While Corporate Social Responsibility is not the answer, one starts to see pockets of hope in the required mind-set shift we are asking leaders to move on to. And these are full of innovations to improve people livelihood at the same time. Learn what it takes to drive sustainability at the core of your business, no longer at its periphery. *Speaker's Biography*: Alexandre is the founder and manager director of Wizeimpact (Pty) Ltd (wizeimpact.co.za), a Cape Town based consultancy that enhance competitiveness of companies while simultaneously advancing the economic and social conditions in the markets in which they operate. Since 2010 Alexandre has been working with the United Nations Global Compact (UNGC - unglobalcompact.org) on how to improve companies' transparency with regards to the value they create or destroy, as well as on the UNGC LEAD companies, top companies achieving the "Blueprint for Sustainability Leadership". His work was part of the UNGC book distributed during the RIO+20 Summit (Spring 2012): "Globally Responsible Leadership: Business According to the UN Global Compact"). Alexandre is an Accredited SROI (thesroinetwork.org) Practitioner - measuring organisations' social impact -, is a Certified GRI (globalreporting.org) trainer - increasing corporate transparency via reporting -, holds a diploma from ECOA Ethics School, MA, USA and a MBA from Hult Business School, MA, USA. *About Le Cap40*: Le Cap40 is a social network for French - South African professionals and French South-African businesses in the Western Cape. The website has the ambition to be a platform for gatherings, exchanges and networking between its members.

Transcript of Why businesses should care about sustainability?

Business Wednesdays Conferences

Why Businesses should care more about Sustainability?

Speaker: Alexandre Lemille

09/04/2014 6:00pm – 8:00pm

More information and RSVP on cap40.co.za Le Cap40 is the business network for professionals with a French accent or a French interest in the Western Cape. The website has the ambition to be a platform for gatherings, exchanges and networking between its members.

ShortWizeimpact

Presentation

A For-Purpose Business

Wizeimpact Runs as a Social Business

Our value proposition is to turn wealth centered businesses

into value centric ventures.

Wizeimpact Value Proposition

Sustainable Strategy

Innovative Approaches Training & Reporting

Impact Measurement

Wizeimpact Our Services

Wiz

eim

pact

.co.

za

Why Businessesshould caremore about

Sustainability?

The Brundtland Commission (01987)

“Sustainable development is development that meets the needs of the present without compromising

the ability of future generations to meet their own needs”

We Lost Sight…

The Earth is 4.6 billion years old.Scaling down to 46 YEARSwe’ve been here4 HOURSand ourIndustrial Revolutionbegan just1MINUTE ago……in that time we’vedestroyed more than50 PERCENTof the world’s forests.

WELCOME

TO

THE

ANTHROPOCENE!

Planetary LimitsBoundary Overshoot

Source: Stockholm Resilience Centre

400 PPM and Raising… Hawaii, March 02013

Kids born in 02010…What’s left for them?

Where are Raw Materials?Not so much in Africa…

A Major Economic & Financial IssuePast 10 years: Price Increase & Volatility

x4 x1.8x3.6x3

The Challenge of the Population+3bn Middle Class by 02030

Food & Water Stress

Scarce natural elementsCompared to Earth mass: fresh water & air

Our current economic model is a “global suicide pact. (...) We mined our way to growth.

We burned our way to prosperity. We believed in consumption without consequences.

Those days are gone.“

A Global Suicide Pact Ban Ki Moon’s Warning

A Global Suicide Pact In Summary:

1. Not much resources to rely on2. Raw material prices are volatile & increasing, due to scarcity3. Planet limits ignored4. Fresh water is scarce5. CO2 threatening the climate6. Expanding wealthier population

Let uslook

at Africa

…and certainly not in Africa

BAU is not an option…

Region/Costs under BAU Trajectory

North America

LATAM Europe MENA Sub-Saharan Africa

Central Asia

South Asia East Asia

Extreme Poverty Medium High Risk High Risk

Food Insecurity Medium High Risk High Risk Medium

Risk of Conflict Medium High Risk High Risk High Risk Medium Medium

Relative Inequality Medium High Risk Medium Medium High Risk Medium Medium Medium

High Fertility High Risk High Risk High Risk Medium

Inadequate Education Medium Medium High Risk High Risk Medium

Gender Inequality Medium High Risk High Risk High Risk Medium Medium

Poor Health Medium Medium High Risk High Risk Medium

Water Stress Medium Medium Medium High Risk High Risk High Risk Medium

Poor Housing Medium Medium Medium High Risk High Risk High Risk Medium

Poor Environment Medium High Risk Medium Medium High Risk High Risk High Risk High Risk

Extreme Weather Medium Medium Medium Medium High Risk Medium High Risk High Risk

Sea Level Rise High Risk Medium High Risk High Risk High Risk High Risk High Risk High Risk

Ocean Acidification High Risk High Risk High Risk High Risk High Risk High Risk High Risk High Risk

Biodiversity Loss Medium High Risk Medium Medium High Risk Medium High Risk High Risk Sou

rce:

Wo

rld

Ban

k

Economic Progress & Social Advancement South Africa (69th /132nd) compared to Brazil (57th)

(71st)

(40th)

(94th)

(128th)

(71st)

(92nd)

(71st)(85th)

(95th)

(59th)

(41st)

(121st)

(32nd)

(50th)

(42nd)

Source: SPI

1. No much resources to rely on2. Raw material price volatility3. Planet limits ignored4. Water scarcity5. CO2 threatening the climate6. Expanding wealthier population7. Business-As-Usual is not an option, especially in Africa8. An Unequal South Africa9. SA Higher Education Access, Ecosystem, Safety & Health falling behind

A Global Suicide Pact In Summary:

TheContext

& Concepts

Africa is BoomingAll Eyes are on the Untapped Market

DEBT

1/202050 02050

+

= The Biggest Human Challenge of all Times

Sustainability = Innovation

Source: Global Footprint Network, 2013

Time for a LeapfrogAfrica: Closest to 1-Earth-Economy

Change Your ReferencesSocial & Technological Innovations from/for Africa

More Than EnoughSun = 89K , Wind: 3.7 , Consumption 1.5 Terawatts

What canYOU do

more about it?

1 Burger uses 2400 L = 2.4 Kiloliters of water,

Price of water : R8 per Kiloliter,

Water value = 2.4 Kl x R8 = R19.2

Today’s price of a burger?

R20 !!

Include Externalities

Step 1: Understand your Impact

SVSVSV

Responsible Supply ChainLower Environ Impact

Responsible Design

Step 2: Product ResponsibilityConsumption Impact

=3 tons of rocks

SVSVSV

Responsible Supply ChainTransparency

Interface: Succeeding in Zero Impact Growth

Step 3: Reduce your Impact to Zero

N°1 Carpet Tile WWD-66% oil based products

SVSVSV

Because…

So Why?

1. You will understand your impact & manage risks2. You will innovate constantly3. You will improve your business model4. You will address all customers’ PP range5. You will cut your costs down, not employment6. You will stay ahead of competition7. You will create Shared Value8. You will expand your markets & create future ones

ACT TODAYBe a Leader / Be an Intrapreneur

LetsTalk at Wizeimpact dot com