3 R’s of Sustainability SESSION 1: The What, Why and How of Sustainability PREVIEW ONLY

Agenda Session 1 –The What, Why and How of Sustainability Session 2 –The Sustainability Hierarchy –Case Study: Subaru Implementation –Reduce, Reuse, Recycle –Implementing Sustainability Measures Session 1 –The What, Why and How of Sustainability Session 2 –The Sustainability Hierarchy –Case Study: Subaru Implementation –Reduce, Reuse, Recycle –Implementing Sustainability Measures PREVIEW ONLY

What is Sustainability One’s ability to “meet society’s present needs without compromising the ability of future generations to meet their own needs” (EPA) Sustainable practices = cost savings –Save money –Create a competitive advantage One’s ability to “meet society’s present needs without compromising the ability of future generations to meet their own needs” (EPA) Sustainable practices = cost savings –Save money –Create a competitive advantage PREVIEW ONLY

Why Study Sustainability 1. To meet new regulations and reporting requirements 2. To avoid litigation 3. To use sustainability as competitive advantage 1. To meet new regulations and reporting requirements 2. To avoid litigation 3. To use sustainability as competitive advantage PREVIEW ONLY

Meeting New Regulations and Requirements International Standards –Kyoto Protocol –“Carbon Market” –ISO –Copenhagen Accord SEC Reporting Requirement International Standards –Kyoto Protocol –“Carbon Market” –ISO –Copenhagen Accord SEC Reporting Requirement PREVIEW ONLY

History 3R’s and environmental awareness aftermath of WWII 1970: Environmental Protection Agency –Monitor environmental activities –Enforce regulations 1970: Clean Air Act 1972: Clean Water Act 1990: Pollution Prevention Act 3R’s and environmental awareness aftermath of WWII 1970: Environmental Protection Agency –Monitor environmental activities –Enforce regulations 1970: Clean Air Act 1972: Clean Water Act 1990: Pollution Prevention Act PREVIEW ONLY

Kyoto Protocol 1997: Kyoto, Japan 5% reduction of greenhouse gas emissions against 1990 levels (Kyoto) Reduction goals differ by country US did not ratify Reduction Methods –Emissions Trading: “Carbon Market” –Joint Implementation –Clean Development Mechanism 1997: Kyoto, Japan 5% reduction of greenhouse gas emissions against 1990 levels (Kyoto) Reduction goals differ by country US did not ratify Reduction Methods –Emissions Trading: “Carbon Market” –Joint Implementation –Clean Development Mechanism PREVIEW ONLY

“Carbon Market” Trading of carbon units Each country has specific number of units Creates market and incentives Countries can sell excess units Can earn through other methods Trading of carbon units Each country has specific number of units Creates market and incentives Countries can sell excess units Can earn through other methods PREVIEW ONLY

ISO Standards based on Environmental Management System (EMS) –Sets goals –Aims to meet specific requirements –Requires process implementation Standards based on Environmental Management System (EMS) –Sets goals –Aims to meet specific requirements –Requires process implementation PREVIEW ONLY

Copenhagen Accord 2009: Copenhagen, Denmark Follow up to Kyoto Protocol Emissions reductions set by 2020 United States agrees to membership –Expected to generate $100 billion –Aid for developing countries Success not yet determined –Disagreements in reporting methods 2009: Copenhagen, Denmark Follow up to Kyoto Protocol Emissions reductions set by 2020 United States agrees to membership –Expected to generate $100 billion –Aid for developing countries Success not yet determined –Disagreements in reporting methods PREVIEW ONLY

SEC and GRI Enforcing reporting requirements –Began spring of 2010 Increased visibility in regards to environmental impact Global Reporting Initiative (GRI) –Guidelines –Measurement tool –Internationally accepted Enforcing reporting requirements –Began spring of 2010 Increased visibility in regards to environmental impact Global Reporting Initiative (GRI) –Guidelines –Measurement tool –Internationally accepted PREVIEW ONLY

Litigation Accountability for actions Increased litigation on environmental issues Lawsuits –Exxon Mobil –BP and Gulf Accountability for actions Increased litigation on environmental issues Lawsuits –Exxon Mobil –BP and Gulf PREVIEW ONLY

Market Forces Sustainability=competitive advantages Market for sustainability practices Green marketing campaigns Walmart –Leader in sustainability management –Leverage to create sustainable supply chain –Powerful advantage over competitors –Long term zero waste goals Sustainability=competitive advantages Market for sustainability practices Green marketing campaigns Walmart –Leader in sustainability management –Leverage to create sustainable supply chain –Powerful advantage over competitors –Long term zero waste goals

Discussion What are some potential risks your company or department may face due the new laws and litigations on Sustainability? How might your company or department benefit from implementing new sustainability standards? –Could the new standards open new market opportunities? –Could promoting your new standards give you a competitive advantage over other companies in your industry? What are some potential risks your company or department may face due the new laws and litigations on Sustainability? How might your company or department benefit from implementing new sustainability standards? –Could the new standards open new market opportunities? –Could promoting your new standards give you a competitive advantage over other companies in your industry?

Session Break 10 minutes PREVIEW ONLY

3 R’s of Sustainability SESSION 2: Hierarchy Benefits Case Study 3 Steps SESSION 2: Hierarchy Benefits Case Study 3 Steps PREVIEW ONLY

The Hierarchy PREVIEW ONLY

Sustainability Benefits Discounts Lower Energy Consumption Resource Conservation Low Product Costs Improved/Competitive Prices Discounts Lower Energy Consumption Resource Conservation Low Product Costs Improved/Competitive Prices Entrepreneurial Innovation Economic Stewardship Decreased Emissions and Pollution Improved Air and Water Quality Competitive Advantage PREVIEW ONLY

Case Study: Subaru Decreased solid waste 99% 14% reduction in electricity consumption on a per-car basis since First automotive plant to be “Zero Landfill” in Recycle 99.9% of all waste. 81% of suppliers are ISO certified. Reduced waste per vehicle 46%. Decreased solid waste 99% 14% reduction in electricity consumption on a per-car basis since First automotive plant to be “Zero Landfill” in Recycle 99.9% of all waste. 81% of suppliers are ISO certified. Reduced waste per vehicle 46%. PREVIEW ONLY

Step 1: Reduction View Reduction Video / Discuss Issues What are some potential opportunities at your company or department for reducing waste? What is the magnitude of cost reduction associated with the waste reduction? View Reduction Video / Discuss Issues What are some potential opportunities at your company or department for reducing waste? What is the magnitude of cost reduction associated with the waste reduction? PREVIEW ONLY

Step 2: Reuse View Reuse Video / Discuss Issues What are some potential opportunities at your company or department for reusing materials? What is the magnitude of cost reduction associated with reuse? View Reuse Video / Discuss Issues What are some potential opportunities at your company or department for reusing materials? What is the magnitude of cost reduction associated with reuse? PREVIEW ONLY

Step 3: Recycle View Recycle Video / Discuss Issues What are some new incentive programs that could speed up the implementation and success of a new Sustainability program at your company or department? View Recycle Video / Discuss Issues What are some new incentive programs that could speed up the implementation and success of a new Sustainability program at your company or department? PREVIEW ONLY

Lessons Learned 1. Profits come from increasing efficiency and reducing waste- but they don’t necessarily come right way. 2. Management’s leadership is crucial in setting goals and getting departments to cooperate. 3. The front lines must be engaged. 4. Green initiatives achieve lots more when companies involve their suppliers. 5. All wastes are potential products. 6. Green Leadership creates competitive advantage. 1. Profits come from increasing efficiency and reducing waste- but they don’t necessarily come right way. 2. Management’s leadership is crucial in setting goals and getting departments to cooperate. 3. The front lines must be engaged. 4. Green initiatives achieve lots more when companies involve their suppliers. 5. All wastes are potential products. 6. Green Leadership creates competitive advantage. PREVIEW ONLY

9 Steps to Sustainability 1. Engage the support of Upper Level Management 2. Organize a Green Team 3. Conduct a Waste Assessment 4. Establish Waste Reduction goals 5. Secure Recycling Markets 1. Engage the support of Upper Level Management 2. Organize a Green Team 3. Conduct a Waste Assessment 4. Establish Waste Reduction goals 5. Secure Recycling Markets 6. Set up a Collection and Storage System 7. Purchase Recycled Goods 8. Train Staff and Promote the Program 9. Measure and Evaluate Procedures and Progress PREVIEW ONLY

Lessons Learned 3Rs = Increased Profitability Top Management Leadership is Crucial All Employees must be involved Supplier Involvement increases benefit All Wastes are potential products Green Leadership creates a Sustainable Competitive Advantage 3Rs = Increased Profitability Top Management Leadership is Crucial All Employees must be involved Supplier Involvement increases benefit All Wastes are potential products Green Leadership creates a Sustainable Competitive Advantage PREVIEW ONLY