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© 2009 International Institute for Learning, Inc. Turning Green into Gold: The Business Case for Sustainability 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
© 2009 International Institute for Learning, Inc. Presented by Bonnie Nixon Environmental Sustainability Expert and former Director of Environmental Sustainability, Hewlett-Packard Turning Green into Gold: The Business Case for Sustainability
© 2009 International Institute for Learning, Inc. Achieving Business and Sustainability Goals Business drivers: Cost reduction Customer opportunity Productivity Environmental stewardship Priorities: Energy efficiency Resource conservation Reuse/Recycle Sustainable ecosystems SCOPE, COMPLEXITY, TIME IMPACT Operations Supply chain Products services solutions Low carbon economy Global Environment Operations & Supply Chain Products & Services
© 2009 International Institute for Learning, Inc. What’s the Business Case for Sustainability? It’s what our customers want first & foremost Reduce Costs Mitigate Risk “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?” “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?” “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?” Enable Growth
© 2009 International Institute for Learning, Inc. Reduce Cost and Reduce the Environmental Impact of Operations Data Center and Real Estate Consolidation Efficiency and cooling Optimization of IT infrastructure Renewable energy purchases Employee engagement 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. Mitigate Risks: Look at Environmental Regulations Trend Notes: pan-EU directives listed as a single regulation (vs. 28+ individual country regulations) Cumulative eco- regulations in force New regulations to implement Challenges: new countries, new subject areas
© 2009 International Institute for Learning, Inc. Mitigate Risks and Put a Comprehensive Climate Policy Position in Place 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 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. Enable Growth and Deliver Solutions Designed for the Environment Product design Use Manu- facture 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 It’s 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 Manufacturing Packaging Logistics/transportation Assessment, improvement and compliance Carbon emissions reporting Transparency and reporting 10 COLLABORATION IS KEY
© 2009 International Institute for Learning, Inc. Partner with Suppliers Corporate policy Code of conduct Supplier assessment Supplier audit Corrective action Capability building External reporting Management system - drives sustainable solutions by promoting root cause analysis Labor - treat employees with dignity and respect Environmental protection Ethics - uphold the highest standards Health and safety - evaluate and control exposure to hazards
© 2009 International Institute for Learning, Inc. How do I reduce, repurpose, renew, donate or recycle? Trade-in Leasing Asset recovery Recycling Remarket/refurbish Donation
© 2009 International Institute for Learning, Inc. Explore Constructive Partnerships and Strategic Alliances and Minimally Track 135/20/2015 IMPACT Media NGOs Government Customers Stakeholders Workers Employees Investors Industry
© 2009 International Institute for Learning, Inc. 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. Lifecycle Approach to Sustainability SCOPE, COMPLEXITY, TIME IMPACT Operations Low carbon economy Walk the talk Exercise your influence Make it simple Innovate Supply Chain Use
© 2009 International Institute for Learning, Inc. Business Case towards a Sustainable Economy REDUCE COSTS MITIGATE RISKS ENABLE GROWTH Reduce energy intensity and carbon footprint Substitute carbon-intensive processes by low-carbon ones Enable low-carbon economy management Energy efficiency Conservation Operational efficiency Resource management CO2 emissions reductions Regulatory strategy Solid policy platforms Carbon reporting Travel substitution Dematerialization Complete assessment Transmaterialization Invest in R&D Innovate for sustainability Integrate social & environment
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