© 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
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