3. SUSTAINABILITY ISSUES
Increasing pressure being placed on the planets
resources & environmental systems
Use of finite resources
Resource scarcity e.g. Minerals, water etc
Climate change
Pollution impacts
Ethical & social issues
Environmental & social impacts set to intensify:
Population estimated to increase to 9.31 billion by 2050
Increase in per capita consumption increased by 138% in
developed countries since 1970
4. SUSTAINABILITY
Bruntland Definition:
‘development which meets the needs of the present
without compromising the ability of future generations
to meet their own needs’
Triple Bottom Line:
‘People, Planet, Profits’
Sustainable Development:
‘Environmental Stewardship, Social Responsibility,
Economic Prosperity’
5. BUSINESS SUSTAINABILITY
Fundamental role of business
Industry & business have been major contributory
factor to current situation
As such, they play a fundamental role in the solution
Impact to business:
Resource scarcity issues
Supply chain sustainability
Increasing costs – energy/legal compliance
Reputational risks
6. BUSINESS DRIVERS
Business drivers for sustainability?
These will differ depending on the context of
individual business environments:
Moral/ethical duty
Legal Compliance
Financial savings
Sales & profit margins
Reputation & brand value
Customer & stakeholder pressure
Competitive Advantage
7. BUSINESS DRIVERS
Recognition of the responsibility business has to
take action
Business Benefits:
Competitive advantage
New markets
Opportunities – green product and services market
estimated to be around $3.2 trillion
8. ACHIEVING BUSINESS SUSTAINABILITY
Organisational journey
Strategy requires tailoring to specific nature of
individual businesses:
Need to meet specific environmental, social &
financial requirements of companies & their
stakeholders
Challenges:
Organisational Complexity – differing structures,
business models, cultures
Successful engagement of internal/external
stakeholders
Global nature of operations & supply chains
9. ACHIEVING BUSINESS SUSTAINABILITY
Two key areas in progressing towards business
sustainability:
Leadership
Leadership by an individual or set of individuals
Leadership demonstrated by an organisation to others e.g.
Supply chain, industry & stakeholders
Innovation
Products
Processes
Business Models
Culture & organisational thinking
10. LEADERSHIP FOR SUSTAINABILITY
Critical for successful & comprehensive
implementation of an organisations
sustainability strategy
Role:
Ensuring the holistic management of the three areas;
People, Planet & Profits
Establishing clear sustainability values & strategy
Ensuring effective communication & integration
throughout organisation
Establishing commitment throughout whole
organisation
11. ROLE FOR LEADERSHIP - CULTURE
Culture has a key role in the successful
implementation of a sustainability strategy
Supporting Factors:
Behaviours which support the sustainability strategy
Development of ownership of sustainability values by
employees
Active involvement in implementation & delivery of
targets & objectives
12. CULTURE
Role of Leadership
Clear communication on the company vision
Supporting creation of the right culture
Creating environment of trust & empowerment that
facilitates emergence of innovation
13. ORGANISATIONAL LEADERSHIP
Demonstrate sustainability leadership to:
Industry sector, supply chain, business networks &
society
Opportunity to exhibit leadership & innovation &
to be the instigators of change & innovation
Effective engagement & cooperation can be
essential in delivery of sustainability goals
Assist in the delivery of new sustainable products,
reduced costs, reduced wastes etc
14. INNOVATION FOR SUSTAINABILITY
Role of Innovation:
Key factor in how we interact have interacted with our
environment and the resulting impacts
It is also key in addressing these challenges
It is the development of something new that
improves performance in the following areas:
Environmental
Social
Economic
15. INNOVATION FOR SUSTAINABILITY
Not restricted to technological change, but will
also include changes to:
Business models
Processes
Operating procedures
Products
Systems & Ways of thinking
16. BUSINESS MODEL INNOVATION
Define how an organisation creates, delivers and
captures value
Key areas:
Products & services a company offers
Relationship with customers
Infrastructure & network of partners
Financial aspects in each of these areas
Format of the business model is key to the
success or failure of a sustainability strategy
17. BUSINESS MODEL INNOVATION
The model will determine the culture &
behaviour of an organisation & opportunities
that are open to it
Stages of Innovation:
Adjustment
Adoption
Improvement
Redesign
18. EXAMPLES – BUSINESS MODEL
INNOVATION
IBM
model combines lease financing and asset recovery
programs
ZETA
an organisation which designs & manufactures
custom made sustainable buildings within one
facility & is able to so due to the design of their
business model
19. SUPPLY CHAIN INNOVATION
Engagement with supply chains integral part of
business sustainability
Complex issue - global nature of supply chains
Role:
Opportunity to exhibit leadership & innovation
To act as instigators of innovation in supply chain
Co-operation and partnership on sustainability
projects
Opportunity to develop solutions to operational
issues e.g. packaging & process wastes
20. INNOVATION IN STAKEHOLDER
ENGAGEMENT
Organisations are now required to manage
requirements extending beyond legal compliance
Competitive advantage to be gained in developing
innovative engagement plans
Role:
Engagement & collaboration
Manage stakeholder ambiguity/concerns
Supporting mutual sustainability objectives
Developing shared understanding & new ways of doing
things
21. SUMMARY
How organisations respond to sustainability
challenges may define long term profitability &
viability
Businesses will need to develop new ways of
thinking and adaptation to changing
circumstances
Leadership & Innovation have a key role to play
in the sustainability journey
