Turning Green into Gold: The Business Case for Sustainability 2009 International Institute for Learning, Inc. Bonnie Nixon Environmental Sustainability Expert and former Director of Environmental Sustainability, Hewlett-Packard Vice President of Circlepoint, Environmental Mediation, Communications and Planning Firm Public Relations Lead for Boston Harbor Cleanup Project Resident Scholar at Stanford and Executive Faculty at Presidio Began career at Three Mile Island Turning Green into Gold: The Business Case for Sustainability Presented by Bonnie Nixon Environmental Sustainability Expert and former Director of Environmental
Sustainability, Hewlett-Packard 2009 International Institute for Learning, Inc. Business drivers: Cost reduction Customer opportunity IMPACT Achieving Business and Sustainability Goals Operations & Supply Chain Products & Services Global Environmen t Low carbon economy Productivity
Environmental stewardship Products services solutions Priorities: Energy efficiency Supply chain Resource conservation Operations Reuse/Recycle Sustainable ecosystems 2009 International Institute for Learning, Inc. SCOPE, COMPLEXITY, TIME Whats the Business Case for Sustainability?
Its what our customers want first & foremost Reduce Costs How can I reduce my energy consumption to lower costs and help meet our environment goals? Today about 40% of my Opex goes to energy. Is there a way to eliminate waste and improve productivity and efficiency? How can we use water more efficiently or increase my purchase of renewable energy recognizing that they are becoming scarce resources? Mitigate Risk My operations are being impacted by power and cooling capacity.
Help me reduce our carbon footprint. How do I manage for future regulations related to embedded carbon in products or elimination of toxins which could create costly recalls? 2009 International Institute for Learning, Inc. Enable Growth How can we obtain new customers by offering more sustainable products and services? How can you help enable our current investments? How do we innovate for a low- carbon economy? Reduce Cost and Reduce the Environmental Impact of Operations Reduce our energy consumption and GHG emissions
Telepresence technology can simulate face-to-face meetings, enabling interactive collaboration while avoiding CO2 emissions. 2009 International Institute for Learning, Inc. Data Center and Real Estate Consolidation Efficiency and cooling Optimization of IT infrastructure Renewable energy purchases Employee engagement Mitigate Risks: Look at Environmental Regulations Trend Challenges: new countries, new subject areas New regulations to implement 120
Cumulative eco100 regulations in force 80 60 40 20 0 2004 2005 2006 Implementation 2007 2008 Emerging 2009 2010
Interpretation 2011 2012 future In force (cumulative) Notes: pan-EU directives listed as a single regulation (vs. 28+ individual country regulations) 2009 International Institute for Learning, Inc. Mitigate Risks and Put a Comprehensive Climate Policy Position in Place Consider unique opportunities to reduce CO2 while developing the economy Policy and industry action is necessary to enable the large- scale deployment of low-carbon solutions
2009 International Institute for Learning, Inc. Consider the following policy and industry actions: Monetize carbon Establish complementary fiscal and other investment incentives Coordinate and facilitate the development of methodologies and standards Implement carbon and resource accounting management software and systems Leverage spending through pilot projects And procurement guidelines Facilitate public-private partnerships Educate and inform Enable Growth and Deliver Solutions Designed for the Environment Product design Manufacture
Use Reducing impact throughout the product life cycle 2009 International Institute for Learning, Inc. Consider Whole Systems Design Companies need to look at the entire eco-system and determine the total cost of ownership taking both CAPEX and OPEX into account Its time to move from the current business model to a service economy model Current metrics reward customers and service providers for the opposite of what both parties want, which is low cost and high value Traditional business processes and billing mechanisms are under-utilized, expensive, and inefficient
2009 International Institute for Learning, Inc. Consider the Entire Value Chain COLLABORATION IS KEY Manufacturing Packaging Logistics/transportation Assessment, improvement and compliance Carbon emissions reporting Transparency and reporting 10 2009 International Institute for Learning, Inc. Partner with Suppliers External reporting
Capability building Corrective action Supplier audit Supplier assessment Code of conduct Corporate policy 2009 International Institute for Learning, Inc. How do I reduce, repurpose, renew, donate or recycle? Trade-in Leasing Donation Recycling Asset recovery Remarket/ refurbish 2009 International Institute for Learning, Inc.
Explore Constructive Partnerships and Strategic Alliances and Minimally Track Custome rs Governme nt IMPACT Investors Media Stakeholde rs Industr y NGOs Workers 2009 International Institute for Learning, Inc. Employe es
Communicate Continuously Communicate clearly with all your audiences using internet and social engagement tools. Make your website user friendly and customer-centric. Engage your employees at home, at work and in the community 2009 International Institute for Learning, Inc. IMPACT Lifecycle Approach to Sustainability Innovate Low carbon economy Exercise your influence Use Make it simple Supply Chain Operations Walk the talk 2009 International Institute for Learning, Inc.
SCOPE, COMPLEXITY, TIME Business Case towards a Sustainable Economy REDUCE COSTS Reduce energy intensity and carbon footprint Energy efficiency Conservation Operational efficiency Resource management CO2 emissions reductions MITIGATE RISKS ENABLE GROWTH Substitute carbon-intensive Enable low-carbon economy processes by low-carbon ones management Regulatory strategy
Complete assessment Solid policy platforms Transmaterialization Carbon reporting Invest in R&D Travel substitution Innovate for Dematerialization sustainability Integrate social & environment 2009 International Institute for Learning, Inc.
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