Will O’Brien June 2011

 Background  Definitions & Models  Sustainability: Embracers Seize the Advantage  Sustainability is The Key Driver of Innovation  Market Trends and Green Service/Career Opportunities  New (Green) Service Development Process  Learn More…

 MBA, University of Albany  Juris Doctor, Suffolk University Law School years in Management and Consulting  Teaching since 2002  Executive-in-Residence, Clark University  Lecturer, Johns Hopkins University  Director, Worcester Sustainable Business Leader Program  Research Interests: ◦ Business and Environmental Sustainability ◦ Change Management ◦ Entrepreneurship ◦ Project Management  Websites:

"What we take for granted may not be here for our children." - Al Gore

Sustainable development seeks to meet the needs and aspirations of the present without compromising the ability to meet those of the future. Far from requiring the cessation of economic growth, it recognizes that the problems of poverty and underdevelopment cannot be solved unless we have a new era of growth in which the developing countries play a large role and reap large benefits. Our Common Future, 1987 The Brundtland Commission (UN World Commission on Environment & Development)

Carbon Footprint Source: New Zealand Business Council for Sustainable Development

Environmental Footprint Source: “Measuring Environmental Footprint: A Financial Services Industry Case Study”, 2008, UNC An environmental footprint is a measure of the amount of resources consumed and the amount of pollution; e.g., green house gas and waste created by an entity and by the firms that serve the entity, usually summarized by the equivalent are of land needed to assimilate these impacts.

The triple bottom line (abbreviated as "TBL" or "3BL", and also known as "people, planet, profit" or "the three pillars" [1] ) captures an expanded spectrum of values and criteria for measuring organizational (and societal) success: economic, ecological and social. (Wikipedia) [1]

 Boston Consulting Group & MIT Sloan Management Review conduct survey about corporate sustainability  2009: 25% of respondents increasing commitment to sustainability  2010: 59% of respondents increasing commitment to sustainability  Growing enthusiasm for sustainability-driven management

 Waste reduction  Energy efficiency  Example: Johnson & Johnson: spent $187 million in energy reduction projects. Expect IRR of 19%, approximate 247,000 megawatts of energy per year.

 Survey discovers two groups of businesses:  Embracers = Leaders in sustainability ◦ Sustainability ALREADY at core of business  Laggards = Cautious adopters ◦ Moving towards a sustainable core

 Large global or regional companies (workforce > 10,000)  Found in resource-intensive industries  Can be either service sector or product industries  Product Industries more likely to be embracers

 Hong /Shanghai Bank Corporation (HSBC):  Bank of America: /our-commitment.html

 Sustainability strategies are necessary to be competitive ◦ 70% believe they are outperforming competitors  Links must be made between sustainability and profitability. Move beyond “cost cutting” and “risk management.” ◦ i.e.. focus on increased margins, greater market share, more innovation/blue ocean creation, access to new markets, etc.  Make sustainability an insider activity

1. Move early — even if information is incomplete 2. Balance broad, long-term vision with projects offering concrete, near-term “wins” 3. Drive sustainability top-down and bottom-up 4. Aggressively de-silo sustainability — integrating it throughout company operations. 5. Measure everything (and if ways of measuring something don’t exist, start inventing them). 6. Value intangible benefits seriously. 7. Try to be authentic and transparent — internally and externally.

 Sustainability not as easy as it appears  How to choose metrics?  How to quantify the effects of sustainability strategies on operations?  On brand reputation?  On company name?  On consumer offerings?

 Both embracers and cautious adopters see the benefits of strategies such as improved resource efficiency and waste management.  Both recognize the brand-building benefits of developing a reputation for being sustainability driven.  Embracers are more aggressive in sustainability spending, but cautious adopters are increasing their commitments at a faster rate.

 Customers a HUGE driver of sustainability efforts.  Sustainability can help build brand image.  Can hurt it too.  Shell fell from 5 th to seventh in 2010, possibly as a result of the BP oil spill.

Five Mega-Trends: 1. Public policy 2. Investment 3. Employees 4. Customers 5. Accountability

Stages: #1 Viewing compliance as an opportunity #2 Making value chains sustainable #3 Designing sustainable products and services #4 Creating “next-practice “platforms “ Why Sustainability is Now a Key Driver of Innovation”, Harvard Business Review, 2009

Market TrendsGreen Service /Career Opportunities Greater focus on energy costs Renewable Energy Consulting Energy Management Consulting Buildings: Design, Weatherization Carbon Trading Increased focus on healthier living Organic Agriculture Toxic Detection, Reduction & Removal Growing consumer awareness re: environmental sustainability Business Certification Educational Programs Marketing Natural Tourism Carbon Footprint Labeling Waste Management Services Risk mitigation for investors re: sustainability Sustainability Reporting Sustainability Report Auditing Mounting pressure from governments, competitors and other stakeholders on businesses, colleges & universities Environmental Law Environmental Compliance & Planning Sustainability Consulting

Jan. 23, 2007 Tesco, the largest supermarket chain in Britain, has announced that it will begin labeling all 70,000 products on its shelves with the amount of carbon generated from the production, transport and consumption of those items.

 Tesco in UK otprint_and_labelling.page  Wal-Mart: Process for Greening Supply Chain its-supply-chain its-supply-chain  Strategic Sustainability Consulting

 Institute for Green Business Certification  Green Business Bureau  Sustainable Business Leader Program (SBLP) Note: looking for interns for Worcester SBLP

 HP: Energy Solution & Sustainability Management detail.html?compURI=tcm: http://www8.hp.com/us/en/solutions/solutions- detail.html?compURI=tcm:  Sustainability Consulting Services including energy audits, report audits: - Deloitte - Accenture - KPMG - PWC - GreenerU, Inc.  Environmental Resources Management (ERM)

CourseSchedule /Location Greening the CorporationFall 11: Mon., 6-9 PM (W) Green MarketingFall 11: Tues., 6-9 PM (W) Sustainability Consulting ProjectsFall 11: Wed., 6-9 PM (W) Energy ManagementSP 12: Thurs., 6-9 PM (W) Green Supply Chain ManagementSP 12: Tues., 6-9 PM (W) Finance and SustainabilitySP12 (W) Corp. Strategy & SustainabilitySpring Break 2012 (W) Eco-entrepreneurshipSummer 2012 (W)

 Net Kate Hanley, Brad McNamara  Sustainability Leaders Speaker Series – AY  Intern: Worcester Sustainable Business Leader Program (need several volunteers)  Websites: