Sharing Recipes for Staying Competitive – Sustainability
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Sharing Recipes for Staying Competitive – Sustainability
- 1. Sharing Recipes for Staying Competitive - Sustainability ECR Thailand, October 2008 J ohn Jackson, Accenture
- 3. Our High Performance research programme has been recognized by the Harvard Business Review as one of the most important thought leadership initiatives “ [Accenture] now matches McKinsey’s share of the thought leadership market with 9% of the total” Source: White Space (Arkimeda) Harvard Business Review recognized Accenture’s High Performance Companies viewpoint as Top-10 research in the area of business performance Source: Harvard Business Review Jul-Aug 2005 Accenture High Performance Business Framework
- 5. We know what it takes to be a high performer…our understanding is based on analysis of over 6,000 companies.
- 6. Sustainability is not the driver of high performance, but leaders create value by aligning around three key building blocks.
- 7. Changing business context is making it more difficult by impacting both supply and demand. The battle for resources & sustainability The new map of innovation Emerging consumers War for talent The flow of capital Economic openness Size & reach of multinationals Technology
- 9. Shoppers are concerned… in Asia as much as in the West. Level of environmental concern Level of effort required in my country Individuals must address climate change Individuals who already take concrete action 98% 81% 78% 85% 90% 76% 73% 82% 82% 63% 54% 71% 93% 84% 86% 86% 73% 72% 63% 81% China UK Germany Average 14 Countries 1 US Source: Accenture End-Consumer Survey on Climate Change, 2007 Note 1: Nordic, France, Ger, Italy, Neth., Spain, UK, Canada, US, Japan, Australia, Brazil, India, China
- 10. And they will take action. Source: Accenture End-Consumer Survey on Environmental Issues in Retail, January 2008. (Survey of ~600 shoppers in Beijing, Shanghai, Guangzhou, Xian, Changsha and Wuhan.) Purchase products with less packaging Do not use plastic bags Purchase re-cycled products None, consciously 63% 46% 40% 28% 24% 21% 17% Returning recyclable goods Frequent environmentally friendly retailers Purchase locally sourced products Use public transport / avoid travelling by car 8% “ What actions do you take personally, to address environmental concerns?”
- 11. ~45% of China’s shoppers ‘buy green’. “ Did you consciously purchase any environmentally friendly products in the last 60 days? What products did you purchase?” Source: Accenture End-Consumer Survey on Environmental Issues in Retail, January 2008. (Survey of ~600 shoppers in Beijing, Shanghai, Guangzhou, Xian, Changsha and Wuhan.) Top three categories # of 591 respondents
- 13. However, most shoppers are still price-oriented. Source: Accenture End-Consumer Survey on Environmental Issues in Retail, January 2008. (Survey of ~600 shoppers in Beijing, Shanghai, Guangzhou, Xian, Changsha and Wuhan.) “ When choosing your retailer, how important are the following considerations?” Average score. Responses ranked from 1 to 6 (6 being the most important)
- 14. Yet they expect to pay a little more. “ What would you be prepared to pay for a more environmentally friendly product (food, apparel and appliances)?” Source: Accenture End-Consumer Survey on Environmental Issues in Retail, January 2008. (Survey of ~600 shoppers in Beijing, Shanghai, Guangzhou, Xian, Changsha and Wuhan.) Over 50% more 30- 50% more 10-30 % more Nothing more 5-10 % more 1-5 % more Expect it to be less For all products, most respondents’ acceptable price 1~10% more expensive than the price for a similar, less environmentally friendly product. Customers are prepared to pay a greater premium for environmentally friendly household appliances than apparel or food.
- 15. And they expect you to tackle these issues… Source: Accenture End-Consumer Survey on Environmental Issues in Retail, January 2008. (Survey of ~600 shoppers in Beijing, Shanghai, Guangzhou, Xian, Changsha and Wuhan.) “ Who would you trust to give you guidance on how to make a difference?” Average score. Responses ranked from 1 to 6 (6 being the most important) “ Whose responsibility is it to tackle environmental problems?” Average score. Responses ranked from 1 to 6 (6 being the most important)
- 16. And they expect you to tackle these issues…TOGETHER. Raw Materials Production & Packaging Packaging Materials Storage & Dist Waste & Recycling Head Office Retailer DC Supplier / Consolidator DC Milling & Processing Centres Stores Packaging Farms Supplier / Consolidator DC Office/ Travel Retailers have Indirect Control and little or no visibility of flow , process or data Retailers have Direct Control and very good visibility of process and operating data kWh / unit kg-km per item 39% 29% 14% 12% 3% Total Carbon Footprint
- 18. Sustainable Market Focus & Position… for your company or for your brands. “ Whole Foods, Whole People, Whole Planet” “ Pao de Acucar Verde” Enabling Consumers to be Green
- 19. Distinctive Capabilities… imbedding sustainability in your processes and practices Energy conservation infrastructure Supply Chain Efficiency Network consolidation to reduce carbon footprint Eco-labeling Global Mass Retailer European Electronics Retailer
- 20. Performance Anatomy... culture, leadership, people. Accenture Development Partnerships and Eco-teams China Computer Recycling Do No Evil
- 21. How will you turn sustainability trends into competitive advantage? Revenues: New products, brand and marketing etc Less Certain / Long Term Certain / Short-term Reduce negative Increase positive Intangible assets: Reputation, networks, license to operate / innovate etc Risks: Regulatory, physical, supply chain, product etc Cost reduction: Eco-efficiency, productivity gains etc Strategic Framework for Sustainability Sources: Accenture Research, Dan Esty - ‘Green to Gold’ Go it alone Competitive Strategy options Collaborate in partnerships and clusters Collaborate at an industry level Shape regulation and policy
Notas del editor
- We initially screen for high performance using a set of widely accepted financial metrics. These metrics define a core and distinct aspect of performance, and together they should combine to portray a comprehensive, if not complete, picture of business performance. The methodology for measuring and identifying high-performance businesses encompasses five measurements of high performance:
- Market focus and position Activities to integrate sustainability include stakeholder analysis, enhanced customer analytics and business intelligence, best practices for internal and external benchmarking, new product development, strategic portfolio management and considerations on how to win in both high-value and high-potential markets. Market focus and position enable you to consider such key questions as: • Are our strategies aligned with strengths, and are they realizable? In particular, where are the opportunities for sustainable growth? • Do we have the right governance structure to deal with changing environmental issues, public agencies and stakeholders. • Are we in the right businesses for the future? • Are we making the right investments in the right areas of our business? What is the right pace? The right level? • Does a shareholder/stakeholder value perspective permeate our metrics and decision making? • Are we at risk from a specific stakeholder’s point of view? Do we systematically map and prioritize stakeholders and issues? • Do we manage to multiple horizons or do we focus excessively on one time frame? Distinctive capabilities Distinctive capabilities in sustainability allow you to manage and integrate stakeholder expectations across a social, economic and environmental agenda, either working alone or in partnership. They produce actionable insights, optimized supply chains, smart technologies, product life-cycle innovation and optimal customer segmentation. Distinctive capabilities provoke action on such key questions as: • Do we monitor external developments in the political, economic, social and technological arenas and act accordingly? • Do we set, communicate and measure long-term sustainability goals that guide and motivate our actions and behaviors across all functions and processes? • Do we measure and manage integrated performance? Do we track qualitative and quantitative key performance indicators and their impact on core business performance? • Do we plan for multiple scenarios— and do we have the organizational capability to adapt to a changing business environment? Performance anatomy Performance anatomy drives a flexible, scalable and integrated sustainability business model. It promotes long-term competitive advantage by multiplying talent and rewarding activities that support the organization’s sustainability agenda. Above all, performance anatomy creates a culture of sustainability consciousness and strengthens new processes and activities. It helps executives support sustainability and communicate regularly on the progress they make. Importantly, the company will have solid performance metrics to provide insight into further actions it should take. Performance anatomy inspires deep insights into such questions as: • Do we have the right balance between making markets and executing effectively? • Do we get more from our employees than our competitors get from theirs? Are our employees committed to delivering the discretionary effort that drives higher productivity? Are they personally engaged with our organization’s strategy? Are we giving them the right training and development on sustainability to drive business performance? • Do we use IT as a strategic weapon across the enterprise? • Do we adequately balance intangibles that drive long-term success against financial measurement? • Does our organization demonstrate the required agility in the face of uncertainty? • Do we know—in real time—how we are performing against our targets? • Do we have the operational data available to understand our challenges and opportunities in enough time to adjust for them?
- Robust economic growth in emerging economies, combined with the high requirements of Western economies, has caused fierce competition for natural resources, particularly energy and water.It also has increased carbon dioxide (CO2) emissions, which contribute to global climate change. The UN Framework Convention on Climate Change estimates that the private sector will need to invest more than US$600 billion every year through 2030 to stabilize CO2 emissions. The price is huge, but so is the prize.Dealing with climate change can galvanize an extraordinary wave of technology, service and business model innovation and drive coordinated global action on a scale not seen before. Employees – In the face of an aging workforce and global competition for talent, organizations that take sustainability seriously are well positioned to attract and retain the most qualified employees, studies indicate. In developing countries, companies that offer above-average working conditions and health care benefits can have an easier time finding skilled employees in areas with limited educational systems. But benefits for companies go beyond employment. As a number of global human resources executives have told us, leadership and performance on sustainability also can directly contribute to productivity and to customer sales and satisfaction by increasing employees’ motivation and commitment and their propensity to go beyond what is expected of them. Investors have begun to consider sustainability performance as an indicator of business performance and a new lens through which to scrutinize the quality of management. Banks and pension funds are starting to view the longevity of a business and its environmental, social and governance impact as part of their financial rating process. Increasingly they are willing to praise—and punish—sustainability performance Consumers as citizens Changing consumer expectations and behavior have a material impact on value creation, profitability and growth. Nine out of 10 consumers around the world say they are ready to switch to energy providers offering products and services that help reduce carbon emissions—and two-thirds are willing to pay on average 11 percent more for the privilege. 2 Consumers read labels more avidly than ever, scrutinizing not just a product’s content but also the process required to put it in their hands. They pay more attention to ethical and environmental concerns, including the use of child labor, the procurement of conflict diamonds, the spread of HIV/AIDS, human rights abuses and the rising amount of nonrecyclable waste. Sustaining high performance means meeting these rising consumer expectations and competing for trust to secure growth, reputation and brand strength. In the area of climate change, this is no small task. Consumers have little faith in government and business to advise them on ways to address climate change. Asked who they most trust, about 43 percent of consumers “always” believe academics and nongovernmental organizations (NGOs) and 37 percent believe consumer associations, but less than 15 percent believe governments and energy companies. 3 Nonetheless, 18 percent of consumers believe that the responsibility for tackling climate change lies primarily with government and business. Stakeholder influence Businesses and public sector organizations must answer to an expanding group of stakeholders, including NGOs, the media, academia, and influential individuals and celebrities. All of them have fresh demands and increasing power to threaten a company’s commercial viability. Their perception is your reality, regardless of the facts. Social capital can determine a company’s license to operate. Companies today must take responsibility for both the social and environmental impact of their operations or leave themselves open to retrospective legislation and stakeholder backlash in the future. If you want to do business in Africa, you must contend with HIV/AIDS and its effect on the health of your workforce and the communities in which you operate. If you want to establish a presence in a developing country but do not have on-the-ground connections to local people, your chances for success are diminished. However, companies’ reactions to stakeholder pressure can demonstrate leadership in sustainability. Global Witness lobbied De Beers to stop trading in conflict diamonds in 1998; today the company leads advocates of the Kimberley Process Certification Scheme to ensure that rough diamonds are conflict-free. Nike suffered consumer boycotts in the 1990s over the use of child labor in its contractors’ sweatshops; today the company is viewed as a sector role model for human rights policies because it implemented changes. Changing demand 2 End-consumer Survey on Climate Change, Accenture, 2007 Policy and regulation National or global regulation on sustainability creates winners and losers. While it can disrupt and even destroy existing business models and industry structures, it also can create a positive platform for change by reducing business uncertainty and creating new market opportunities. In the area of climate change, four out of five business leaders want governments to take a central role in tackling the issue. 4 They feel this way even though there is no agreement over how best to standardize requirements across countries and incentivize businesses and consumers to change their behavior Proactively partnering with policy-makers, stakeholders and even industry rivals in shaping regulation and policy solutions that benefit business and society makes sense in managing healthy competition. Increasingly this will be a feature of smart strategy.`
- Reporting – Corporate CSR reports have historically been accused of self-promotion at the expense of completeness, materiality, accuracy and transparency As stakeholders demanded greater transparency of methodologies and more comprehensive disclosures, the sophistication of reporting began to increase significantly. The use of different methodologies resulted in further suggestions that companies were incomparable with one another The Global Reporting Initiative (GRI) emerged as a common framework which was designed to be applicable to all organisations, regardless of industry In conjunction with GRI is the UN Global Compact which provides a structure for signatories who are requested to respond to 10 principles of business As the concepts of responsible and social investment grew in prominence, stakeholders required information on social and environmental performance to enable them to make informed investments Companies listed in major indices are now commonly assessed and ranked by the Indices themselves (e.g. FTSE, Dow Jones) with eligible companies placed on an independent indices such as Dow Jones Sustainability Index and FTSE4Good Many Indices list the participants who do not respond to requests for information and are increasingly ‘naming and shaming’ organisations in an effort to increase participation There are many voluntary disclosures to independent organisations worldwide, some of which are global in scope (e.g. Carbon Disclosure Project) whilst others are local (e.g. BITC [UK], MERCO [Spain] and Cemefi [Mexico]) Independent organisations typically use companies listed in major indices as their research base, but crucially, these organisations are independent entities and are different from actual indexing organisations such as Dow Jones or FTSE Many ‘voluntary’ disclosures will list organisations who do not respond in an attempt to increase participation The level of venture capital investment in clean and “green” technologies is already significant, on a par with the early phases of the dot-com boom. Cleantech investments in the United States rocketed from US$500 million in 2005 to more than US$4 billion in 2007. 1 European growth is slower but still significant, more than doubling to US$1 billion in the same period. . JPMorgan and Citigroup have developed lending guidelines that make it tougher for investor-owned utilities to build coalfired power plants because of the risks associated with CO2 emissions. KKR and Texas Pacific Group, two of the world’s largest private equity firms, forced TXU to scrap eight of its 11 planned coal-fired plants for their acquisition of TXU to go forward. We also see significant growth in sustainability reports and indexes from leading global financial institutions like Goldman Sachs, which weighs the impact on valuation and investment decisions.
- Today Retailers, distributors and manufacturers all have a role and different levels of control in reducing carbon emissions Products are sourced from greater distances as retailers operate with more developed infrastructure and have shoppers who demand greater product variety Retailers’ carbon footprint increases as their sourcing profile includes products manufactured / grown in more distant locations, and with a longer supply chain Next steps to make carbon monitoring real in China: Full visibility of the supply chain; beyond the last point of distribution for each player Recognized approach to calculating product level CO 2 emission (e.g. to manage seasonality variations) A system & process for suppliers to provide product data and for retailers to store / update core operating data Recognized China industry benchmarks (e.g. CO 2 conversion factors adapted to China’s infrastructure / manufacturing practices) Consideration of environment impact beyond CO 2 – land usage, waste, other greenhouse gases and water usage are also potentially significant issues for retailers
- Whole Foods Market - the world's No.1 natural and organic foods chain, with 194 supermarket format stores in North America and the United Kingdom. To date Whole Foods Market remains uniquely mission driven: highly selective about what is sold, dedicated to stringent Quality Standards, and committed to sustainable agriculture. Each store has a Green Mission representative Representative works closely with other representatives in near-by stores, regional Green Mission coordinators and national leadership to constantly inform and improve green actions Are regionally-based and empowered to make decisions locally for their own store, region or community served Whole Foods We obtain our products locally and from all over the world, often from small, uniquely dedicated food artisans. We strive to offer the highest quality, least processed, most flavorful and naturally preserved foods. Why? Because food in its purest state — unadulterated by artificial additives, sweeteners, colorings and preservatives — is the best tasting and most nutritious food available. Whole People We recruit the best people we can to become part of our team. We empower them to make their own decisions, creating a respectful workplace where people are treated fairly and are highly motivated to succeed. We look for people who are passionate about food. Our team members are also well-rounded human beings. They play a critical role in helping build the store into a profitable and beneficial part of its community. Whole Planet We believe companies, like individuals, must assume their share of responsibility as tenants of Planet Earth. On a global basis we actively support organic farming — the best method for promoting sustainable agriculture and protecting the environment and the farm workers. On a local basis, we are actively involved in our communities by supporting food banks, sponsoring neighborhood events, compensating our team members for community service work, and contributing at least five percent of total net profits to not-for-profit organizations. But how sustainable is the growth for companies positioned in this space? We’ve seen a decline in Whole Foods growth rate over the last x years. Whirlpool’s approach is focused on bringing the most energy efficient products into the market and thus reducing GHG emissions through its consumers B&Q China held its “green environmental home improvement survey” in 26 cities and 63 outlets, as its investment back into the society. The results of the survey was released during an event on Earth Day 2008. Results include: which Chinese city’s resident has the most environmentally friendly homes, what to avoid (sustainability-wise) when improving your homes, etc. This survey is rather timely in a society where home improvement is an extremely fast-growing and popular theme. Chinese government’s retail & consumer committee associate chair, Mr. Mu, says, “B&Q is offering a good initiative to teach home improvement consumers to shop smart.”
- Carrefour China– Carrefour announced in early 2007 that its outlets will have new energy conservation policies in China. Carrefour has since begun updating its existing infrastructure in lighting, freezer system, heating system etc. It is also bringing in new technologies in water recycling and heat recycling. By September 2008, 80% of Carrefour outlets have already updated to the new energy conservation infrastructure. Carrefour’s Shanghai headquarter will also remotely monitor the energy conservation situation in all Carrefour stores around China. Spokesperson says that Carrefour will be “return the benefits of the energy conservation to its customers” Global Retailer – Eco Labeling French consumers are increasingly becoming conscious of the impact that their behaviour has on the environment, ranking environment 1 st and pollution 3 rd as national priorities 66% of consumers wish to know the Carbon Footprint of the products that they are purchasing, providing an opportunity for retailers to differentiate themselves by adopting a consumer centric strategy to address changing behaviours There are currently a number of environmental labels in the market which range in complexity, clarity of information and methodologies which are not addressing the consumer need for a simple view of their carbon impact Developed three phases of the approach the need to identify the objectives; assess the methodology and define the impacts to be communicated; and pilot the process across 4 products Accenture identified the need to address the key factors in the development of sustainable labelling: Clarity of the information to be displayed Methodology of calculation Sustainable progression derived from sustainable transparency Sustainable labelling as a risk management tool Accenture successfully developed the methodology in alliance with a Life Cycle Analysis. The purpose of which to initiate a globalisation to a large amount of products (suppliers implication, database set up) Results The differentiation of the products sold by the retailer will allow it to strategically positioning in the market A reliable and scalable methodology, validated by national agencies and NGOs will allow for a wider use due to the creation of a defined standard Test on pilot products Lock next steps for generalisation Unilever - In the area of supply chain management, we are helping transform Unilever’s logistics network in South Africa in a project expected to deliver significant reductions in the carbon footprint through network consolidation. Further analysis has been conducted on leading “green” initiatives for warehousing that are being considered as part of the new warehouse designs. Unilever factories are moving towards zero effluent discharge (no release of wastewater to local water courses) In Nigeria, Unilever has provided dental equipment and funded free dental checks for around 10,000 people. Kinhom - Kinhom is one of the top furniture manufacturer and retailer in China. It announced its new initiative in “green supply chain” where it will monitor and management all suppliers (and supplier’s suppliers) on various “green”, “healthy” and “safety” metrics. In addition, Kinhom has 5 sustainability policies toward its supply chain: Keeping materials green (green from inside the products) Incorporating environmental-friendliness and healthy metrics into KPI’s along the supply chain In the areas of protecting the environment and preserving the health of consumers, Kinhom will monitor all supplier’s management, storage, logistics, transportation, and sales systems. Bringing the “green supply chain” idea to the suppliers’ and business partners’ management systems. Using ERP and CRM systems to analyze the sustainability metrics and customer feedback in product quality and safety. The UK’s largest electronics retailer sought to achieve several goals simultaneously, by transitioning to a new distribution model: improve distribution performance, reduce costs, and begin to address carbon emissions in its supply chain Develop a new Outsourcing and Transport strategy to support migration from a regional distribution network with 17 Distribution Centers to a two site model with stockless cross-dock facilities Work with the Client to develop and deploy a Supply Chain Carbon Footprint Calculator Identify significant reductions in the Client’s supply chain carbon footprint, principally from vendor inbound transportation, warehousing activities and optimising secondary transport Performance highlights include: 26% reduction in warehouse electricity consumption through site rationalisation 33% reduction in carbon emissions for vendor inbound activities through consolidation of movements 11% saving on distribution costs as part of a 3-year change program 8% reduction in carbon emissions for home delivery fleet, through reduced distances traveled A 10% reduction in overall supply chain carbon footprint will be achieved from 2005/06 to 2007/08 (forecast)
- Google – the Internet giant flipped the switch on one of the world’s biggest solar power arrays (9,200 solar panels that cover its corporate headquarters). Together with its philanthropic arm, Google.org, it also set aside $10 million for a program to speed development of plug-in electric cars, invested $20 million in wind and solar companies, and pledged tens of millions more for an ambitious initiative to find ways to make renewable energy cheaper than coal. Why is an Internet company so interested in energy? Partly, because it uses a whole lot of it. The massive network of computer servers Google uses to run its Internet search engine suck up millions of dollars of electricity each month, by some estimates. Finding cheap, reliable power is of utmost importance to the company. It also hopes to make money off its energy investments in the future. But there’s also a deep streak of environmentalism that runs throughout Google, from its billionaire founders to many of its newest employees. Renewable energy sources reduces reliance on increasingly costly fossil fuels A 1.6MW solar panel installation on Google’s roofs generates 30% of the peak power required for those buildings Earlier this week, Google announced plans to get into the alternative energy business . The Web search and advertising giant plans to spend $500 million to buy companies and hire engineers to develop new and more affordable solar, geothermal, wind, and other alternative energy sources. The “Renewable Energy Cheaper Than Coal” initiative plans to “produce one gigawatt of renewable energy capacity that is cheaper than smog producing coal. Google execs expect to achieve this gigawatt milestone — which could power a large city — within “years, no decades.” Noble goal. But, it raises a question: Who the heck would buy power from their search engine provider? The short answer: Google itself. In fact, when announcing the initiative, Google execs were careful to state that the move to find cheaper power was fueled by a need to lower its own electricity bill. The company’s patented data centers house hundreds of thousands of servers that run their leading search engine. With rising oil and energy prices, power consumption has become top of mind for most large, data-centric companies — from the high-tech to the financial sector. In fact, as recently reported here Ken Leinweber, Strategic Sourcing Manager, Procurement and Operations Strategy at Sun Microsystems estimates that “ IT on average spends 25% of their budget on power . In the next five years or so, folks will be spending more money on power than they will on the hardware.” Just consider the additional commodity savings you’ll need to identify and capture to offset those rising power costs. If that’s not a rallying cry for sustainable supply strategies, I don’t know what is. Dell – Dell started offering one of the first computer recycling program in China. It hosts large events where Dell representatives buy used computers from consumers—as well as offering games for prizes (games usually consist of question and answer for environmental issues). Dell representatives say that used electronics disposed improperly can have large negative impact on the environment. Lenovo followed Dell’s example in recycling computers a month later. (Dell also announced a new line of desktop computers that uses environmentally friendly material and conserves energy.) Accenture – Accenture Development Partnerships is a not-for-profit group that makes high-quality consulting services available - at greatly reduced costs - to organisations working with developing economies to drive social and environmental improvement around the world Have executed over 125 projects across 51 countries since inception eg. South East Asia – Community Knowledge Sharing in natural resource management Acceleration of learning for nurses in Africa Eco-teams are composed of employees who are working to help Accenture reduce its impact of our project operations, our home offices and the communities of our own and our clients’ locations. The Eco-teams are based around these core ideas and activities: Eco Events Eco-Efficient Practices Eco Awareness & Adoption Campaign Eco Project Toolkit The US Eco Challenge is intended to engage employees and raise awareness about their personal impact on the environment and allow them to make reduction pledges . The Challenge rewards employees for identifying and profiling their environmental impact . Employees with the highest impact reduction receive special recognition and awards. The Eco Project Toolkit provides client engagement teams with resources to help them reduce the environmental impact of client engagements . We now rate our suppliers on the environmental sustainability of their products and operations. We are committed to obtaining global ISO14001 certification in 2008. Environmental sustainability is one of the most importance aspects of our supplier scoring process: Our RFP process now compares all conventional products with more sustainable products We ask supplier companies what environmentally sustainable actions they are taking Environmental sustainability is weighted second only to pricing in importance We are reducing the environmental impact of our offices . Accenture rationalized its real estate portfolio by holding its building footprint constant, while doubling the size of its workforce. 9 of our offices are already ISO14001 certified, and we are committed to achieving Global ISO14001 certification by the end of 2008 . Our offices are managed in accordance with a common Environmental Management System , which is led by a designated Environmental Coordinator We are supporting and developing communities through grants, partnerships, volunteerism, and pro-bono consulting services . Accenture Foundations committed US$6 million in new charitable grants and gave more than US$8 million through global and local giving programs Accenture Development Partnerships has delivered over 70,000 hours of nonprofit consulting services in 25 developing countries Accenture employees contributed more than 87,000 hours of pro bono services nonprofits We are a founding member of Voluntary Service Overseas Accenture is a signatory of the United Nations Global Compact We are embracing diversity as a means of driving high performance . Hosted Accenture’s third International Women’s Day with more than 6,500 participants in 24 countries Earned perfect rating of 100 from the Human Rights Campaign Foundation on its Corporate Equality Index and Best Place to Work survey Recognized as Africa’s most transformed company for commitment to Black Economic Empowerment at the African ICT Achievers Awards hosted by ForgeAhead Starbucks In fiscal 2006, Starbucks purchased 18 million pounds of Fair Trade Certified™ coffee.