Corporate Sustainability: The Next Great Learning Opportunity Session 743 Tuesday, November 8, 2011 Grant Ricketts

2 Agenda 1.What is Sustainability and what does it mean for Business? 2.Do you know what your company is doing? 3.What opportunities does this present for Learning leaders? 4.What steps can you take going forward?

4 : What does Sustainability mean to you…?

Sustainability Defined “Meeting the needs of the present generation without compromising the ability of future generations to meet their own needs” – Brundtland Commission, UN Global Compact 1987 “The possibility that human and other forms of life on earth will flourish forever” John Ehrenfeld, Professor Emeritus, MIT “Enough, for all – forever” African Delegate to Johannesburg (Rio+10)

6 : But, what about for Business…?

Triple Bottom Line “People, Planet, Profit…” Sustainability provides direct business challenge… “to redesign business practices and processes across all aspects of the organization – from resource extraction and supply chain, to production, distribution, marketing, and selling, and eventually, helping mange 'end-of-use' processes as well – in order to find ways to build brand and profit, and reduce risk and negative impacts”

“Green is $reen” – Jeffrey Immelt, CEO General Electric Key investment drivers: 1.Achieve cost savings through improved resource efficiency 2.Spur product/process innovation and revenue growth 3.Create positive brand equity 4.Assure compliance with environmental regulations 5.Engage people, retain talent

9 : What % of input ends up as waste in most U.S. production processes…?

… 94%

“Green” Business Strategy …a new ecological lens… Sustainability Operations Strategy Financial drivers: Save money, Avoid risk, Enhance brand, Innovate, Engage people

Lean (and Green) Manufacturing Less/recyclable product packaging Alternative raw material sourcing Biomimicry Etc. How can we design, build, and deliver products that produce less waste?

White House Executive Order Greenhouse gas emissions (GHGs); Energy efficiency; Water efficiency; Pollution prevention and waste elimination; Regional and local planning; Sustainable federal buildings; Sustainable acquisition; Electronics stewardship; and, Environmental management. EO specifies that every federal organization and agency must produce a sustainability plan including specific goals concerning:

19 Agenda 1.What is Sustainability and what does it mean for Business? 2.Do you know what YOUR COMPANY is doing? 3.What Opportunities does this present for Learning leaders? 4.What Steps can you take going forward?

20 : Does your Company have a CS0?

21 : Do you know whether your Company has issued a CSR report?

Market Size/Growth Sustainability Growth Curve Companies reporting to GRI CSR Reporting Guidelines GRI produces widely recognized Sustainability Reporting Framework: –Provides guidance for disclosure of sustainability performance –Facilitates transparency and accountability –Provides stakeholders a universally-applicable, comparable framework from which to understand disclosed information The GRI Framework covers performance across economic, environmental, and social categories and includes six protocols for disclosing performance data: –Economic –Environmental –Labor Practices –Human Rights –Society –Product Responsibility

24 Agenda 1.What is Sustainability and what does it mean for Business? 2.Do you know what YOUR COMPANY is doing? 3.What Opportunities does this present for Learning leaders? 4.What Steps can you take going forward?

Emerging Behaviors Achieved Green Team “tipping point” –2,400 employees (15% workforce) formally engaged “Won” Solar challenge with CFO Established ‘Buy/Sell’ Green in “Green Teams” Intranet site and Social networking –Post ‘best practices’ guides –Connect to experts –How to start/manage “green teams” Role-based training –(Operations, Procurement, R&D, Marketing) Sustainability Ambassadors (“SAMBAs”) –All 147 global sites –No bottled water at P&G

What’s wrong with this picture? “Green Teams” are forming in organizations… …But, many seek to ‘stay under the radar’ of HR” – Alta Terra Research “Green teams can be characterized as evolutionary learning communities because they are emergent, self-organizing, interdependent, synergetic, and evolving.” – Alta Terra Research

Sustainability ties into the Talent Management Lifecycle 'Making Sustainability Part of Everyone's Job‘ can change the culture of the Company Ad Hoc efforts are too random Rewards, Retention Learning and Collaboration Mission, Values Ideas, Innovations, Results Target Competencies Corporate Culture, Reputation

Getting Beyond Compliance… Innovation? Waste Reduction? Efficiency? Sustainability? Total Training Spend = $57B

29 : Is Sustainability just another form of Compliance training?

30 Agenda 1.What is Sustainability and what does it mean for Business? 2.Do you know what YOUR COMPANY is doing? 3.What Opportunities does this present for Learning leaders? 4.What Steps can YOU take going forward?

31 : What actions or steps should Learning Leaders consider when they go back to their companies?

Similar Challenge (as Learning) Organizations are large and complex Manufacturing Reduce/eliminate waste, reduce water consumption, conduct GHG emissions inventory. Marketing Promote 'green' brand attributes to capture market share. Products Redesign products with recycled components and less discarded material Facilities All new leases in green buildings only. Apply sustainable building design / construction. How to engage people in multiple programs

Planning Framework – Role-based Training

Possible Actions Look up Company CSR Report Meet with Sustainability and LOB leaders Discuss what learning can do to help drive sustainability Look for new training solutions Help embed Sustainability as part of Company’s mission, values and competency Partner with peers from other companies who might have ideas or resources to share… Other…?

Your ‘CSO’ Needs You Hey!...Let’s reduce Waste, get more Efficient and Innovate!

Thank You!

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