A great presentation by Bob Willard on the business incentives for sustainability

1. Bob Willard bobwillard@sympatico.ca www.sustainabilityadvantage.com The Business Ca $ e for the “Sustainability Imperative” Learning for a Sustainable Future Annual Dinner Toronto May 18, 2010

2. The “Sustainability Megatrend” David A. Lubin and Daniel C. Esty , “The Sustainability Imperative,” HBR May 2010 Megatrend: “A fundamental shift in the competitive landscape that creates inescapable threats and game-changing opportunities ... profoundly affects companies’ competitiveness and even their survival.” Over the last 10 years, the sustainability imperative has emerged. Environmental issues have steadily encroached on businesses’ capacity to create value for customers, shareholders, and other stakeholders … magnified by escalating public and governmental concern about climate change, industrial pollution, food safety, and natural resource depletion , among other issues.”

3. Sustainability Drivers Siemens / McGraw-Hill Construction presentation about the Greening of America Corporate SmartMarket Report, Greenbuild, Nov. 2009 C-suite survey of 203 large U.S. enterprises, Feb.-Mar. 2009

4. Benefits of Sustainability Strategies Siemens / McGraw-Hill Construction presentation about the Greening of America Corporate SmartMarket Report, Greenbuild, Nov. 2009 C-suite survey of 203 large U.S. enterprises, Feb.-Mar. 2009

5. The 3 R’s of Justifying Sustainability R ISKS R ESPONSIBILITIES R EWARDS BUSINESS CASE + + Based on Alan AtKisson, The IRIS Agreement , p. 127

6. Risks to Financial and Natural Capitals: Big-5 Sustainability Storm Fronts Climate Change and Energy Crises Poverty and Social Injustice Species Extinction and Overharvesting Food and Water Crises Waste, Toxicity, and Health

7. The 3 R’s of Justifying Sustainability R ISKS R ESPONSIBILITIES R EWARDS BUSINESS CASE + + Based on Alan AtKisson, The IRIS Agreement , p. 127

8. Risks to Financial and Social Capitals: Stakeholders’ Rising Expectations Waste, Toxicity, and Health Climate Change and Energy Crises Poverty and Social Injustice Species Extinction and Overharvesting Food and Water Crises Employees Customers Media Economists (Scientists) (NGOs) Competitors Markets Governments Insurers The Public Investors Banks Risks to Reputation re Corporate Responsibilities Social license to operate

9. The 3 R’s of Justifying Sustainability R ISKS R ESPONSIBILITIES R EWARDS BUSINESS CASE + + Based on Alan AtKisson, The IRIS Agreement , p. 127

10. The 3 R’s of Justifying Sustainability R ISKS R ESPONSIBILITIES R EWARDS BUSINESS CASE + + Large Companies: At least 38% more profit SME Companies: At least 66% more profit

11. Potential Profit Increase 1. Reduced recruiting costs 2. Reduced attrition costs 3. Increased employee productivity 4. Eco-efficiencies in manufacturing 5. Eco-efficiencies at commercial sites 6. Increased revenue - market share 7. Lower insurance & borrowing costs … yielding a profit increase of +38% -1% -2% +10% -5% -20% +5% -5% REPUTATION

12. Employee Engagement & CSR CBSR and Hewitt, “Engaging Employees Through CSR” webinar, Jan 2010

13. Engagement Drives Business Results Gallop Consulting, “Employee Engagement” brochure, 2008

14. The 3 R’s of Justifying Sustainability R ISKS R ESPONSIBILITIES R EWARDS BUSINESS CASE + + Climate Change & Energy Crises Employees Customers Economists (Scientists) (NGOs) Governments Insurers Investors At least 38% to 66% more Profit

15. In Summary … Sustainability / CSR is smart business Enhances social license to operate Improves employee engagement & productivity Relevant to existing business priorities Can protect & enhance company value Many willing, helpful partners Opportunity for leadership … by example

16. Bob Willard bobwillard@sympatico.ca www.sustainabilityadvantage.com The Business Ca $ e for the “Sustainability Imperative” Learning for a Sustainable Future Annual Dinner Toronto May 18, 2010