“…If you look at the science about what is happening on earth and aren’t pessimistic, you don’t understand data. …But if you meet the people who are working to restore this earth and create a new business model, and you aren’t optimistic, you haven’t got a pulse.” Lisa Swallow, CPA CMA MS Presented to Women’s Empowerment Project April 2012 “Meeting the needs of the present without compromising the ability of future generations to meet their needs” --1987 UN Brundlandt Report Sustainability: The possibility that we all flourish forever. -- John Ehrenfeld, International Society for Industrial Ecology All major ecosystems in the world are threatened Toxic build-up and dispersion Life Supporting Resources Water tables dangerously low What willour transportationdecline systems look ? Dramatic inlike fisheries & coral reefsdeclining How will we globally continue to feed a burgeoning Forest depletion population ? Loss biodiversity How will health careof be administered? What sorts ofClimate materials will we use to produce change consumer goods ? What role will technology play? How soon will all our buildings be net zero energy ? “Natural Capital” What will power our world? We’re spending the corpus, should What will the biodiversity loss really look like? Life be living off of interest! Will there be enough desalinated water for the world? Consumption of Supporting Resources rising Shepard Glacier Glacier National Park, MT 1913 W. C. Alden photo USGS Photographic Library 2005 USGS Repeat Photography Project http://nrmsc.usgs.gov/repeatphoto/ Blase Reardon photo USGS Dilemma – when multiple parties, acting independently and with own self-interest at heart, will ultimately deplete a shared limited resource even when it is clear that it is not in anyone's long-term interest for this to happen Garrett Hardin 1968 What happens to a trust if you live off the interest? What happens if you spend down the corpus? Natural capitalism recognizes and assigns fair market value to ecosystem services – valued at $2 trillion per year and no substitutes And focuses on product design using biomimicry, providing services (not product ownership) and increasing efficiency PROFIT PLANET PEOPLE Businesses increasingly acknowledging new strategy – moving from short term thinking to long term vision Enhance revenue - Brand imaging/marketing Cutting operating costs Increasing interest in investment world in socially responsible firms Waste Water Eco-efficiencies Energy Renovate rather than build SRI - $3 trillion (see Dow Jones Sustainability Index) Enhanced EE recruiting/retention Risk mitigation/reduction of exposure Reduced costs of capital Innovation opportunities for the impending green economy are limitless Smart grids Distributed energy Hydrogen infrastructure Water desalinization and purification New consumer goods Renewable energy Energy efficiency Green building products New financial services and markets Alternative transportation models New manufacturing processes “Green Shoppers 2009” Report conducted by Deloitte & Touche Consumers are rewarding green businesses Saturation in many traditional markets Fastest growing markets are green Number One: Rise of the “conscious consumer” 19% 17% LOHAS Naturalites 15% 24% Drifters Conventionals Unconcerned 25% Source: Natural Marketing Institute “NMI’s 23009 Consumer Segmentation Model” True Blues Sprouts Grousers Basic Browns Number Two: Availability of information/transparency Very easy to access info on companies’ behavior and product attributes based on interest – what are “green products”? Made and/or sold locally Recycled and/or recyclable Indigenous/artesian crafted Fair trade Toxin free Organic Sweatshop free Produced with green energy Study after study showing increasing blending of values and purchasing ”The Consumer Society” is transforming towards the “Simple Society” Byproducts of materialist society weighs on us Explosion of debt Migration of jobs overseas Staggering amount of waste created by disposable lifestyle All this leads towards more responsible and value driven purchasing. Consumer interested in authenticity & responsible supply chain practices GreenBiz Fourth Annual MIT Sloan Management Review & and Boston Consulting Group -2011 research report Greening of Corporate America 2009 Greening Corporate America Change product development Look at fastest growing markets Practice corporate social responsibility Craft new partners Establish benchmarks and measure progress Design that complies with TNS Green Materials Sustainable Design Framework that require mindful design: • Biomimicry • Cradle to Cradle • Design for the Environment From Bios (life) + Memesis (to imitate) – Janine Benyus Product design framework – emulating 3.8 billion years of evolution - species don’t use up their host organism What’s flourishing on the planet today are the best ideas - those that perform well in context, while economizing on energy and materials Organics/local vs. corporate food Green building 2005 - green building accounted for 2% of construction 2008 - 15-20% of new construction Amount equivalent to $50b market Naturopathy/alternative medicines Early adopters (solar) going mainstream Natural fibers (bamboo, hemp, jute, etc) Sustainable home furnishings Recycled-content paper products Stu Hart – “Capitalism at the Crossroads” BoP 1.0 - Large corporations will experience growth solving the world’s problems for the poorest 4 billion people Saturation in existing markets “Trickle-up opportunity” Smaller packages, different distribution model Sell service (pest control/house cleaning) Nairobi – buy ‘by the squirt’ “Next Generation BoP Strategies” BoP 2.0 Partner with local entrepreneurs to build capacity S G Johnson – service and flow model Business concerns: Employee health (down supply chain), retention/productivity, consumer health, community prosperity Purchasing policies (Fair Trade, Sweatshop-Free) Many office greening maneuvers (daylighting, toxin free, etc.) will enhance employees’ worklife) Address commuting issues Green HR policies Many MNCs looking to team up with ecological experts Coca-Cola employing ecologists to help analyze future projects’ biodiversity impacts Dow Chemical partnered with TNC to add ecosystem costs/benefits to business model City of Sao Paulo collaborating with WWF to run drinking water project – analyzing effect of logging, ranching, ag on water quality/wildlife Andrew Liveris, CEO "This collaboration is designed to help us innovate new approaches to critical world challenges while demonstrating that environmental conservation is not just good for nature - it is good for business” “What gets measured, gets managed” More detail when looking at GRI tomorrow New metrics emerging – be transparent! CO2 e per … revenue dollar or employee or per sq. ft. of facility space % of recycled materials Solid waste measurements Fair trade-certified product % Embodied energy (LCA) Embodied water Social footprint Sustainability Balanced Scorecard The sustainability crisis cannot be solved by the same kind of education that helped create it. --David Orr