The climate-conscious CFO 6 July 2011

Workshop presenters: Parminder Dost (Chief Financial Officer, Airwave Solutions Ltd) Matthew Wetherall (Head of Strategy, Airwave Solutions Ltd) Tony Rooke (Head of Environment and Sustainability, Logica) The climate-conscious CFO

“Sustainability is not just about compliance and traditional cost savings, it is about delivering long term value to the business” The climate-conscious CFO

Areas to consider... What are the main areas of ‘sustainability’ your business can address? What are the costs associated with ‘sustainability’? Question: What does ‘sustainability’ mean to you? The climate-conscious CFO

What are the main areas of ‘sustainability’ your business can address?  Your energy usage and CO2 emissions e.g. office, plant, travel  Travel policies e.g. Commuting, travel to meetings, video conferences  Managing /reducing waste  Improving efficiencies of using supplies  Managing suppliers (ethical/renewable sourcing policies) ... Question: What does ‘sustainability’ mean to you?

What are the costs associated with ‘sustainability’?  Updating resources (capex)  People (processes, auditing, etc.)  Increased ‘green’ supplier costs  Opportunity cost  Challenge of valuation for approving business cases ... Question: What does ‘sustainability’ mean to you?

Question: How do you justify the business case and what questions should you be asking yourself? The climate-conscious CFO Area to consider... What are the possible benefits of ‘sustainability’ projects?

Benefits:  Cost savings e.g. Lower energy bills; more efficient use of raw materials; lower travel expenses; time savings (e.g. video-conferencing)  Standards compliance  Attract investment  Better staff morale => improved retention, acquisition, etc  Environmental  Brand and PR  Valued by customers with green agendas -Offers customers choice and opens up new customer base -Some customers will pay more for it - May have disproportionately high weighting in procurement process vs other ‘more expensive’ criteria COMPETITIVE ADVANTAGE Question: How do you justify the business case and what questions should you be asking yourself?

Questions to ask:  Near term benefits vs long term value?  Need to look at the whole picture (not just individual initiatives in isolation)  How will it improve competitive advantage? => Need to understand your customers’ supplier selection (scoring) criteria  Gaining competitive advantage or maintaining it? => What are your competitors doing?  How to quantifying staff retention, acquisition and morale benefits?  What is impact and benefit of reducing long term business risk? Question: How do you justify the business case and what questions should you be asking yourself?

Key take aways from this session Take away 1: Be clear of why you are progressing a sustainability agenda (e.g. compliance ‘tick the box’ or do you believe there is long term value in it?) Take away 2: Understand your customers’ sustainability agenda Support this through your own sustainability agenda and ensure your suppliers are aligned if required Take away 3: “Sustainability is the single biggest business opportunity of the 21 st century, and will be key to maintaining competitive advantage” Where will your company stand in 10 years time if you ignore this? Quote by H. Lee Scott, President and CEO of Wal-Mart The climate-conscious CFO

Thank You Quote by H. Lee Scott, President and CEO of Wal-Mart The climate-conscious CFO