Page | 1
MIND THE GAP
Page | 2
CARBON CHALLENGE
UK CO2 & Other GHG Emissions
775
2050 Target
Other GHGs
Agriculture & Land use
Residential
Public
MtCO2 Equivalent
77
5.
183
3
Transport
8
80
14
123
125
Business & Industrial Process
573
93
2
77
10
70% cut
(=80% vs. 1990)
122
83
Energy supply
243
1990
186
155
2009
2030
Year
Excluding Aviation, shipping and imports
Page | 3
2050
POPULATION CHALLENGE
Page | 4
ENERGY CHALLENGE
Page | 5
INVESTMENT CHALLENGE
Page | 6
COMMODITIES CHALLENGE
Page | 7
WATER CHALLENGE
Page | 8
BUSINESS IN A VUCA WORLD
Page | 9
LEARNING FROM ICE HOCKEY
Wayne Grezky – nicknamed the ‘Great
one’
Page | 10
SUSTAINABILITY AND VALUE CREATION
Value
Creation
Levers
Impacts of
Sustainability
Strategy
• Brand
• Pricing Power
• Operational and
Resource
Efficiency
• Supply Chain
Optimisation
• Lower costs
and taxes
Pricing
Power
Cost
Savings
• Enhanced
ability to attract,
retain and
motivate
employees
• Customer
advocacy and
loyalty
• Enhanced
ability to enter
new markets
• Lower churn
rate
• More potential
sources of
revenue
• Employee
productivity
Employee
recruitment &
engagement
Market
Share
New
Market
Entry
MARGIN IMPROVEMENT
REVENUE GROWTH
Profits
Free Cash Flow
TOTAL SHAREHOLDER VALUE
Page | 11
MIT Sloan Management Review – courtesy of Nike
• Lower market,
balance sheet
and operational
risk
Risk
Premiums
• Lower cost of
capital
• Greater access
to capital,
financing and
insurance
Cost of
Capital
Valuation Multiple
LOOKING BEYOND BUSINESS AS USUAL
Resource efficiency
Operational efficiency and cost
savings
Engaging
Employee recruitment, retention
and engagement
colleagues
Developing new business
New business opportunities and
deepening customer relationships
Upgraded
Managing existing and emerging
operational and business risks
risk platforms
Collaboration
Strategic partnerships and cross
industry collaboration
Engaging
Customers, suppliers, investors,
NGOs and investors
Brand
Page | 12
customers
Cost
People
Customer
Markets
Risk
Investors
RESOURCE EFFICIENCY
Committed to reducing our environmental
impact by 20% by 2020
This is central to our strategy of being the
best bank for customers
Delivery of this will be through SMART &
RESPONSIBLE, our environmental action
plan
buildings
Page | 13
ONE BITE AT A TIME
Agree
Disagree
Page | 14
“It is important to me that the
company I work for is actively
engaged in combating climate change
and other environment related issues”
IT ALL STARTS WITH URGENCY AND LEADERSHIP
I have to say, I find it virtually impossible to identify a
single sector or, for that matter, a single customer
that won’t feel the impact of the changes that
reducing climate change and environmental impacts
will have on our economy and our society.“ (Truett
Tate, Group Executive Director, Lloyds Banking Group)
Page | 15
KNOW YOUR AUDIENCE
Page | 16
BUILDING CAPACITY CONFIDENCE AND UNDERSTANDING
Page | 17
CULTURE AND NETWORKS
Personal
action
Network
Encourage
others
Page | 18
EXCELLENT COMMUNICATION
Page | 19
DEVELOPING NEW BUSINESS OPPORTUNITIES
Page | 20
SUPPORTING THE GREEN ECONOMY
Page | 21
UPGRADED RISK PLATFORMS
Page | 22
COLLABORATION
Page | 23
ENGAGING CUSTOMERS
Page | 24
THOUGHT LEADERSHIP = COMPETITIVE DIFFERENTION
c
F
Page | 25
+
c
I
=
c
R
Value
Creation
Levers
SUSTAINABILITY AND VALUE CREATION
Pricing
Power
Cost
Savings
Employee
recruitment &
engagement
Market
Share
New
Market
Entry
MARGIN IMPROVEMENT
REVENUE GROWTH
Profits
Free Cash Flow
TOTAL SHAREHOLDER VALUE
Page | 26
MIT Sloan Management Review – courtesy of Nike
Risk
Premiums
Cost of
Capital
Valuation Multiple
Page | 27
0
