The Business Ca$e
for the
“Sustainability Imperative”
Learning for a
Sustainable Future
Annual Dinner
Toronto
May 18, 2010
Bob Willard
bobwillard@sympatico.ca
www.sustainabilityadvantage.com
The “Sustainability Megatrend”
Megatrend: “A fundamental shift in the competitive
landscape that creates inescapable threats and
game-changing opportunities ...
profoundly affects companies’
competitiveness and even their survival.”
Over the last 10 years,
the sustainability imperative has emerged.
Environmental issues have steadily encroached on
businesses’ capacity to create value for customers,
shareholders, and other stakeholders …
magnified by escalating public and governmental concern
about climate change, industrial pollution, food safety,
and natural resource depletion, among other issues.”
David A. Lubin and Daniel C. Esty , “The Sustainability Imperative,” HBR May 2010
Sustainability Drivers
C-suite survey of 203 large U.S. enterprises, Feb.-Mar. 2009
Siemens / McGraw-Hill Construction presentation about the
Greening of America Corporate SmartMarket Report, Greenbuild, Nov. 2009
Benefits of Sustainability Strategies
C-suite survey of 203 large U.S. enterprises, Feb.-Mar. 2009
Siemens / McGraw-Hill Construction presentation about the
Greening of America Corporate SmartMarket Report, Greenbuild, Nov. 2009
The 3 R’s of Justifying Sustainability
RISKS
+
RESPONSIBILITIES
+
REWARDS
BUSINESS CASE
Based on Alan AtKisson, The IRIS Agreement, p. 127
Risks to Financial and Natural Capitals:
Big-5 Sustainability Storm Fronts
Waste, Toxicity,
and Health
Poverty and
Social Injustice
Species Extinction and
Overharvesting
Food and Water
Crises
The 3 R’s of Justifying Sustainability
RISKS
+
RESPONSIBILITIES
+
REWARDS
BUSINESS CASE
Based on Alan AtKisson, The IRIS Agreement, p. 127
Risks to Financial and Social Capitals:
Stakeholders’ Rising Expectations
Species Extinction and
Overharvesting
Waste, Toxicity,
and Health
Poverty and
Social Injustice
(NGOs)
Food and
Water Crises
Media
Economists
The Public
Investors
Customers
Employees
Competitors
Risks to Reputation re Banks
Corporate Responsibilities
Governments
Insurers
Markets
(Scientists)
The 3 R’s of Justifying Sustainability
RISKS
+
RESPONSIBILITIES
+
REWARDS
BUSINESS CASE
Based on Alan AtKisson, The IRIS Agreement, p. 127
The 3 R’s of Justifying Sustainability
RISKS
+
RESPONSIBILITIES
+
SME
Companies:
At least 66%
more profit
REWARDS
BUSINESS CASE
Large
Companies:
At least 38%
more profit
Potential Profit Increase
REPUTATION
1. Reduced recruiting costs
-1%
2. Reduced attrition costs
-2%
3. Increased employee productivity
+10%
4. Eco-efficiencies in manufacturing
-5%
5. Eco-efficiencies at commercial sites
-20%
6. Increased revenue - market share
+5%
7. Lower insurance & borrowing costs
-5%
… yielding a profit increase of +38%
Employee Engagement & CSR
CBSR and Hewitt, “Engaging Employees Through CSR” webinar, Jan 2010
Engagement Drives Business Results
Gallop Consulting, “Employee Engagement” brochure, 2008
The 3 R’s of Justifying Sustainability
Climate Change
&
Energy Crises
RISKS
+
RESPONSIBILITIES
(NGOs)
(Scientists)
Customers
Economists
Governments
+
REWARDS
BUSINESS CASE
Employees
Investors
Insurers
At least 38% to 66%
more Profit
In Summary …
Sustainability / CSR is smart business
Enhances social license to operate
Improves employee engagement & productivity
Relevant to existing business priorities
Can protect & enhance company value
Many willing, helpful partners
Opportunity for leadership … by example
The Business Ca$e
for the
“Sustainability Imperative”
Learning for a
Sustainable Future
Annual Dinner
Toronto
May 18, 2010
Bob Willard
bobwillard@sympatico.ca
www.sustainabilityadvantage.com