Sustainable Treasury Management:
Going Green Can Save You Green
MB Financial Bank
Windy City Summit
June 8, 2012
Agenda
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Situation Analysis
Top Trends
Working With Your Bank
Resources
Before We Begin
Two reminders before we begin today
This is not a presentation about changing light bulbs or recycling water
bottles. Although change begins with simple tasks and low
hanging fruit, we will focus on the Treasury Management industry and
trends in the business community at large.
Sustainable Treasury Management does not just apply to Fortune 500
companies. You will learn that in many cases, small businesses are
more involved with and better leveraged to implement go green and
eco-friendly campaigns.
Sustainable Treasury Management impacts all areas of the business community
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Situation Analysis – Environmental Fast Facts
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Each year, Americans throw away enough paper and plastic cups,
spoons, forks, and knives to circle the Earth 300 times
Recycling one ton of paper saves the energy equivalent of 185
gallons of gasoline
Recycling 1 million laptops saves enough energy to power 3,657
homes for an entire year
It takes 90% less energy to recycle aluminum cans than to produce
new ones
Making 2,000 pounds of paper from recycled paper saves up to 17
trees and uses 50% less water than creating paper from original pulp
Over 1.7 million tons of plastic water bottles are produced annually
in the U.S. requiring the energy equivalent of over 500 million
barrels of oil – approximately 75% of those bottles are not recycled
Clean Air Council, 2012
Aluminum cans can take up to 500 years to decompose, but only 6 weeks to recycle
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Situation Analysis – What is Sustainable Treasury?
Sustainable Treasury Management is the concept of deploying an
overall program or strategy that supports environmentally friendly or
green initiatives throughout business operations including:
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Paper reduction
Electronification and automation
Alternate and renewable energy sources
Recycling and waste management
Process improvement
Product and technology innovation
Construction, transportation, and logistic redesign
Employee engagement and education
There are several different components to a sustainable Treasury Management program
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Situation Analysis – Why Sustainable Treasury?
There are several factors influencing businesses that have
ignited the sustainable Treasury Management movement:
Cost reduction initiatives
 Regulatory guidelines and enforcement
 Eco-labels and certifications
 Energy, waste, and resource efficiencies
 The electronic world at large
 Political and social pressure
 Competitive advantages
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Businesses are moving beyond desire and compliance to competitive advantage
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Situation Analysis – Sustainable Treasury Landscape
Sustainable Treasury Management is growing across all businesses and
all industry segments. However, the market is seeing a pull from the
top and the bottom between large and small companies which is
squeezing the mid sized companies who are more followers.
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Large businesses (over 10,000 employees)
 More resources, support many segments, top down
management support
Small businesses (less than 500 employees)
 Nimble, product or industry focused, grass roots movement
Strategic focus on eco-friendly initiatives in targeted industries
 Highly regulated, manufacture specific products, manage waste
 Automotive, Energy, Transportation, Farming, Hospitality,
Retail
Green agendas are growing across all businesses and all industry segments
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Situation Analysis – Corporate Go Green Strategies
Corporate Treasury Go Green strategies can be looked at in three
different categories
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Passive
 Reactive, one off projects, no real strategy or business plan
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Active
 Formal sustainability program, employee engagement,
commitment to community footprint
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Aggressive
 Internal personnel dedicated to Go Green, formal policies with
customers and local businesses, proven industry leadership
Go Green strategies differ by organization and industry segments
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Situation Analysis – Challenges to Sustainable Treasury
Adoption
 There continues to be a high resistance to change
 Overall education on business impacts and savings is limited
Cost
 There can be significant up front costs to sustainable Treasury
 New technologies carry higher price tags to implement and maintain
Infrastructure
 The U.S. is not yet setup for the next generation alternative energy
solutions
 Many eco-friendly initiatives are in development or on hold due to
social or political issues
Businesses must weigh out the benefits and challenges in their overall strategies
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Situation Analysis - Survey
Question
Yes
No
Don’t
Know
Has your company assessed it’s carbon
footprint?
28.6%
44.2%
27.2%
Does your company have a formal sustainability
program or strategy?
51.7%
36.7%
11.6%
Do you view your financial institution
relationships as partners in a sustainable
treasury strategy?
49.0%
32.2%
18.9%
Are your company’s environmental strategies
integrated with its business plan?
39.4%
39.4%
21.2%
Do you feel that by going green, your company
will have a competitive edge in the marketplace?
39.7%
38.9%
21.4%
Treasury & Risk, 2011
Corporate sustainability programs are becoming more commonplace in the industry
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Top Trends – Alternate and Renewable Energy Sources
Businesses are looking for alternate sources to power and
operate their buildings, plants, warehouses, and all
facilities in order to reduce long term costs and eliminate
carbon dioxide emission.
Solar
 Wind
 Hydroelectric
 Geothermal
 Biomass
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Alternative energy sources eliminate carbon dioxide which contributes to global warming
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Top Trends – Paper Reduction
There has been on ongoing trend to reduce paper in the workplace for
the last 15 years. However, paper continues to be part of the business
world as well as the medium of choice for many industries.
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Recycle all paper and cardboard
Purchase new paper with the following attributes:
 Recycled materials, chlorine free, mercury free
Print documents as double sided print outs
Replace paper cups and utensils with reusable materials
Use paper towels and tissues with recycled materials
Read documents online and suppress all paper related statements
and management reports
Suppress annual reports and 10K reports and make available online
Removing paper in the workplace is a key area for businesses to reduce costs
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Top Trends – Recycling and Waste Management
Recycling and disposing of waste in an efficient manner is a
key component of any sustainability program.
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Recycle all materials that can be recycled
 Paper, cardboard, glass, metals, plastic, electronics
 Keep recycle bins and containers near copy
machines, printers, break rooms, and restrooms
Dispose, collect, and remove waste efficiently
Donate or dispose large or high volumes of items like
equipment and furniture
Recycling and properly disposing waste is crucial to meeting green goals
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Top Trends – Transportation
Rising fuel costs and the proliferation of suburban living has increased
the amount of travel time and expenses in all areas of business
logistics.
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Telecommuting/Remote offices
Teleconferencing
Carpooling
Public transportation
Alternative methods
 Biking
 Walking
To meet the logistical demands of the current and future business environment,
alternatives to traditional means are necessary
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Top Trends – Construction
Businesses are re-engineering how facilities and properties are
developed and demanding more eco-friendly construction from
owners.
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Eco-friendly materials
 Reused and refurbished
Green landscaping
Organics
Automatic lighting and thermostats
Sealed doors and windows
Powered by alternate or renewable energy sources
Long term sustainability begins with the buildings that house raw materials and employees
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Top Trends – Office Management
The easiest way to begin a go green strategy is to start with human
capital.
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Employee rewards and programs
Junk mail reduction
Recycling centers
Green landscaping/Indoor plants
Green cleaning/Non-toxic products
Telecommuting/Remote offices
eNewsletters
The most successful sustainability programs start from the bottom up
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Top Trends – Technology
Moving from legacy mainframe and software based systems to the
cloud is becoming essential to reduce overall support and energy costs.
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Reduction in server farms and systems
Decrease in backup and storage costs
Elimination of installations and use of CDs and DVDs
Efficient deployment of new applications and programs
Save energy
 Less facilities to store hardware
 Reduce temperature cooling for rooms
The faster businesses move to the cloud, the faster they realize savings
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Top Trends – Carbon Footprint and Offsets
Businesses are becoming more aware of their carbon footprint and
using sophisticated tools to calculate and analyze their overall
carbon dioxide (CO2) emissions. In addition, the use of carbon offset
programs is gaining ground.
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Carbon footprint
Carbon offset
Carbon footprinting and using offset credits is a key component of any green strategy
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Top Trends – Carbon Footprint Calculation and Analysis
Businesses are applying scientific methods to determine their overall carbon footprint
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Top Trends – Cash Management and Banking
Businesses are seeking partnerships with their financial institutions to
meet their sustainable Treasury Management goals and green
initiatives.
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Paper to electronic migration
Elimination of paper statements, notices, and advices
Online banking
 Reporting, Transaction initiation, Notifications
Archive and data retrieval
Back office system automation and integration
Financial institutions are uniquely positioned to partner with customers on green initiatives
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Situation Analysis - Survey
Question
Yes
No
Don’t
Know
Has your company assessed it’s carbon
footprint?
28.6%
44.2%
27.2%
Does your company have a formal
sustainability program or strategy?
51.7%
36.7%
11.6%
Do you view your financial institution
relationships as partners in a sustainable
treasury strategy?
49.0%
32.2%
18.9%
Are your company’s environmental strategies
integrated with its business plan?
39.4%
39.4%
21.2%
Do you feel that by going green, your company
will have a competitive edge in the marketplace?
39.7%
38.9%
21.4%
Treasury & Risk, 2011
Corporate sustainability programs are becoming more commonplace in the industry
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Online Banking Solutions
Online banking platforms offer several modules that help businesses manage
treasury functions in a safe and secure session by eliminating paper
statements and providing all reports online
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Information Management
 Prior day, current day, multi-currency, historical transaction
reports
Payment Initiation
 ACH, Wire Transfer, Internal Transfer
User Administration
 User entitlements and permissions, dollar limit restrictions
Alert Notifications
Data Archive
Other Modules
 Lockbox, Remote Deposit Capture, File Management
Are you utilizing all of the online banking options available beyond basic features?
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Payables Solutions
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Automated Clearing House (ACH)
 Direct deposit of payroll, vendor payments,
employee reimbursement, tax payments
Wire Transfer
 Vendor payments
Internal Transfer
Positive Pay
F/X Payments
Business Credit Card
 Low dollar payments, travel and entertainment
Payables solutions reduce costs by migrating paper checks to electronic payments and
automate processes to manage all payments online
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Receivables Solutions
Automated Clearing House (ACH)
 Premiums, dues, subscriptions
 Wholesale Lockbox
 Business to Business (B2B)
 Retail Lockbox
 Consumer to Business (C2B)
 Remote Lockbox
 Remote Deposit Capture
 Intelligent Safes
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Receivables and collections solutions eliminate incoming paper and send electronic data
files for reconciliation and settlement
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Overall Go Green Solutions
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Paper to Electronic (P2E) Migration
 Payables/Disbursements
 Receivables/Collections
Reports and Statements
 Eliminate all paper statements and checks
 Review all bank accounts online
Archive and Retrieval
 Generate all special reports online
 Search for transactions and specific items
 Stored data and reports
Automation and Integration
 File transfer (inbound/outbound)
P2E migration, online reporting and data archive and retrieval and automation and data
integration are all key components to any sustainable Treasury Management strategy
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Resources
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Pay it Green - http://www.payitgreen.org/
Environmental Protection Agency - http://www.epa.gov/
The Green Office - http://www.thegreenoffice.com/
Treasury & Risk 2011 Going Green Survey Results http://media.treasuryandrisk.com/treasuryandrisk/article/2011
/07/25/TR%20July11SurveyResults.pdf
JP Morgan White Paper Green Treasury Operations http://www.jpmorgan.com/tss/General/Creating_A_Green_Tre
asury_Operation_Is_Easier_Than_You_Think/1271975461438
Carbon Footprint Business Analysis http://www.epa.gov/climateleadership/smallbiz/footprint.html
Business Carbon Footprint Calculator http://carbonfootprint360.com/p/business-carbon-footprintcalculator.html