© 2009 International Institute for Learning, Inc.

Turning Green into Gold: The Business Case for Sustainability

• Bonnie Nixon– Environmental Sustainability

Expert and former Director of Environmental Sustainability, Hewlett-Packard

– Vice President of Circlepoint, Environmental Mediation, Communications and Planning Firm

– Public Relations Lead for Boston Harbor Cleanup Project

– Resident Scholar at Stanford and Executive Faculty at Presidio

– Began career at Three Mile Island

© 2009 International Institute for Learning, Inc.

Presented byBonnie Nixon

Environmental Sustainability Expert and former Director of Environmental Sustainability, Hewlett-Packard

Turning Green into Gold: The Business Case for Sustainability

© 2009 International Institute for Learning, Inc.

Achieving Business and Sustainability Goals

Business drivers:

•Cost reduction

•Customer opportunity

•Productivity

•Environmental stewardship

Priorities:

•Energy efficiency

•Resource conservation

•Reuse/Recycle

•Sustainable ecosystems

SCOPE, COMPLEXITY, TIME

IMPA

CT

Operations

Supply chain

Products services solutions

Low carbon

economy

Global Environmen

t

Operations & Supply Chain

Products & Services

© 2009 International Institute for Learning, Inc.

What’s the Business Case for Sustainability?It’s what our customers want first & foremost

Reduce Costs

Mitigate Risk

“How can I reduce my energy consumption to lower costs and help meet our environment goals? Today about 40% of my Opex goes to energy“.

“Is there a way to eliminate waste and improve productivity and efficiency?”

“How can we use water more efficiently or increase my purchase of renewable energy recognizing that they are becoming scarce resources?”

“My operations are being impacted by power and cooling capacity”.

“Help me reduce our carbon footprint”.

“How do I manage for future regulations related to embedded carbon in products or elimination of toxins which could create costly recalls?”

“How can we obtain new customers by offering more sustainable products and services?”

“How can you help enable our current investments?”

“How do we innovate for a low- carbon economy?”

Enable Growth

© 2009 International Institute for Learning, Inc.

Reduce Cost and Reduce the Environmental Impact of Operations

• Data Center and Real Estate Consolidation

• Efficiency and cooling

• Optimization of IT infrastructure

• Renewable energy purchases

• Employee engagement

Reduce our energy consumption and GHG emissions Telepresence technology can simulate face-to-face meetings, enabling interactive collaboration while avoiding CO2 emissions.

© 2009 International Institute for Learning, Inc.

Mitigate Risks: Look at Environmental Regulations Trend

0

20

40

60

80

100

120

2004 2005 2006 2007 2008 2009 2010 2011 2012 future

Implementation Emerging Interpretation In force (cumulative)

Notes: pan-EU directives listed as a single regulation (vs. 28+ individual country regulations)

Cumulative eco-regulations in

force

New regulations to

implement

Challenges: new countries, new subject areas

© 2009 International Institute for Learning, Inc.

Mitigate Risks and Put a Comprehensive Climate Policy Position in Place

Consider the following policy and industry actions:• Monetize carbon• Establish complementary fiscal and other

investment incentives• Coordinate and facilitate the development of methodologies and standards• Implement carbon and resource accounting management software and systems• Leverage spending

• through pilot projects • And procurement guidelines

• Facilitate public-private partnerships• Educate and inform

• Consider unique opportunities to reduce CO2 while developing the economy

• Policy and industry action is necessary to enable the large- scale deployment of low-carbon solutions

© 2009 International Institute for Learning, Inc.

Enable Growth and Deliver Solutions Designed for the Environment

Product design

Use

Manu-facture

Reducing impact throughout the product life cycle

© 2009 International Institute for Learning, Inc.

Consider Whole Systems Design

• Companies need to look at the entire eco-system and determine the total cost of ownership taking both CAPEX and OPEX into account

• It’s time to move from the current business model to a service economy model

• Current metrics reward customers and service providers for the opposite of what both parties want, which is low cost and high value

• Traditional business processes and billing mechanisms are under-utilized, expensive, and inefficient

© 2009 International Institute for Learning, Inc.

Consider the Entire Value Chain

• Manufacturing

• Packaging

• Logistics/transportation

• Assessment, improvement and compliance

• Carbon emissions reporting

• Transparency and reporting

10

COLLABORATION IS KEY

© 2009 International Institute for Learning, Inc.

Partner with Suppliers

Corporate policy

Code of conduct

Supplier assessment

Supplier

audit

Corrective action

Capability building

External reporting

© 2009 International Institute for Learning, Inc.

How do I reduce, repurpose, renew, donate or recycle?

Trade-in

Leasing

Asset recoveryRecycling

Remarket/refurbish

Donation

© 2009 International Institute for Learning, Inc.

Explore Constructive Partnerships and Strategic Alliances and Minimally Track

IMPA

CT

Media

NGOs

Government

Customers

Stakeholders

WorkersEmploye

es

Investors

Industry

© 2009 International Institute for Learning, Inc.

Communicate Continuously

Communicate clearly with all your audiences using internet and social engagement tools.

Make your website user friendly and customer-centric.

Engage your employees at home, at work and in the community

© 2009 International Institute for Learning, Inc.

Lifecycle Approach to Sustainability

SCOPE, COMPLEXITY, TIME

IMP

AC

T

Operations

Low carbon economy

Walk the talk

Exercise your influence

Make it simple

Innovate

Supply Chain

Use

© 2009 International Institute for Learning, Inc.

Business Case towards a Sustainable Economy

REDUCE COSTS

MITIGATERISKS

ENABLEGROWTH

Reduce energy intensity and carbon footprint

Substitute carbon-intensive processes by low-carbon ones

Enable low-carbon economy management

• Energy efficiency• Conservation• Operational efficiency• Resource management• CO2 emissions reductions

• Regulatory strategy

• Solid policy platforms

• Carbon reporting

• Travel substitution

• Dematerialization

• Complete assessment

• Transmaterialization

• Invest in R&D

• Innovate for sustainability

• Integrate social & environment