3. The Headlines
•
Progress is slowing or plateauing
•
Despite growing and deeper activity
•
Scale, speed and scope is insufficient
•
We’re likely losing ground
4.
5. Four Trends
•
Collaboration Becomes an Accelerator
•
Shadow Pricing Steps into the Limelight
•
Employee Engagement Becomes Strategic
•
Buildings and Companies Go Positive
6. Four Trends
•
Collaboration Becomes an Accelerator
•
Shadow Pricing Steps into the Limelight
•
Employee Engagement Becomes Strategic
•
Buildings and Companies Go Positive
7. Four Trends
•
Collaboration Becomes an Accelerator
•
Shadow Pricing Steps into the Limelight
•
Employee Engagement Becomes Strategic
•
Buildings and Companies Go Positive
8. Four Trends
•
Collaboration Becomes an Accelerator
•
Shadow Pricing Steps into the Limelight
•
Employee Engagement Becomes Strategic
•
Buildings and Companies Go Positive
14. SUSTAINABLE
GROWTH
The environmental impacts of business, air pollution,
biodiversity loss, ecosystem degradation and water
scarcity, are threatening the ability of our finite stock
of natural capital to deliver SUSTAINABLE
GROWTH.
16. IDENTIFYING
THE
LEADERS
EXAMPLE
NATURAL
CAPITAL
LEADER
PROFILE
IMPACT
QUANTITY
NATURAL
CAPITAL
NATURAL
CAPITAL
VALUATION
CO-‐EFFICIENT
COST
($M)
GHG
emissions
metric
tons
1,086,015
$120
$130
Water
use
cubic
meters
97,715010
$1
$98
Sulfur
oxide
metric
tons
1,120
$1,300
$1
120
$16,700
$2
ParBculate
emissions
metric
tons
Other
environmental
impacts
Natural
Capital
Costs
$M
Company
Revenue
$M
$113
$344
$12,050
Natural
Capital
Efficiency
Rate
Natural
Capital
Costs
/
Company
Revenue
2.85%
5
Year
Natural
Capital
Efficiency
Rate
Δ5
years
(Natural
Capital
Cost
/
Revenue)
3.55%
Natural
Capital
Decoupling
Rate
(Natural
Capital
Efficiency
Rate
-‐
5
Year
Natural
Capital
Efficiency
Rate)
/
5
Year
Natural
Capital
Efficiency
Rate)
*
100
-‐19.58%
17. EFFICIENCY
LEADERS
Natural
Capital
Efficiency
Leaders
have
the
lowest
natural
capital
impacts
in
their
operagons
and
supply
chain
per
million
dollars
of
revenue.
18. DECOUPLING
LEADERS
Natural
Capital
Decoupling
Leaders
have
decoupled
revenue
growth
from
natural
capital
impact
in
their
operagons
and
supply
chains
over
the
last
five
years.
19. THE
LEADERS
Revenue
increased
94%,
GHG
decreased
16%
Introduced
an
onsite
gas-‐
fired
generator
at
the
main
Technology
data
centre.
When
fully
operagonal,
the
tri-‐generagon
facility
saves
20,000
tonnes
carbon
emissions
and
approx.
A$2
million
energy
costs
per
year.
Revenue
increased
13%,
GHG
Scope
1
decreased
16%,
GHG
Scope
2
decreased
56%,
water
consumpBon
decreased
8%
Has
a
three-‐pronged
approach
to
energy
management
-‐
cogeneragon,
conservagon
and
greater
efficiency.
For
example,
In
2012
its
phosphates
business
produced
enough
energy
to
sagsfy
39%
of
companywide
demand
through
cogeneragon,
avoiding
approx.
1
million
tonnes
of
carbon
emissions.
Revenue
increased
9%,
GHG
Scope
1
decreased
9%,
GHG
Scope
2
decreased
10%,
water
consumpBon
decreased
54%
Water
use
reducgons
were
driven
by
a
more
efficient
manufacturing
footprint
achieved
through
conservagon
programs,
and
pulp
and
gssue
restructuring.
.
Revenue
increased
42%,
GHG
Scope
1
decreased
58%
Inigagves
where
the
company
engages
employees
in
sustainability
have
led
to
significant
carbon
reducgons.
Since
2010,
its
Environmental
Excellence
Awards
program
has
generated
approx.
$200
million
in
cost
savings
.
Revenue
increased
19%,
GHG
Scope
1
decreased
9%,
GHG
Scope
2
decreased
11%
Established
energy
efficiency
standards
in
2008
requiring
new
network
equipment
to
be
>
20%
more
energy
efficient
than
equipment
being
replaced;
saved
more
than
63.9MT
of
carbon
emissions
in
year
one.
20. WHAT
NEXT?
Payment
for
ecosystem
services?
PROFIT
AT
RISK?
SHADOW
WATER
PRICING?
NET
BENEFIT
ANALYSIS?
Product
EP&L
or
Company
EP&L?
Greener
product
porEolios?
NET
POSITIVE
GOALS?
Environmental
cost
analysis
of
new
infrastructure
RAW
MATERIALS
investments?
OPTIMIZATION?
Supply
chain
pass-‐through
costs?
REVENUE
Commodity
flow
maps?
AT
RISK?
This
is
the
start
of
a
journey
towards
exploring
the
right
indicators
to
effecgvely
align
business
strategies
with
sustainable
development
imperagves.
Our
objecgve
has
been
to
demonstrate
the
power
of
financially
orientated
sustainability
metrics.
We
trust
in
the
innovagon
of
the
companies
we
work
with
to
adapt
these
metrics
to
address
more
specific
sustainability
goals
and
objecgves.