1. Sustainability
Dr. Ron Lembke

2. What is “Sustainability?”
The ability to keep doing something for the indefinite future
If it’s not profitable, it’s not sustainable
What allows a company to survive?
Meeting customer demands
Developing new products
Keeping costs low

3. Treehugger Fringe

4. Industry Thinks it’s Important

5. Students Care Stanford MBA survey
97% of students say they would take lower pay for a company with good CSR policy (Corporate Social Responsibility)

6. What is “Sustainability?”
Brundtland Commission (1987):
“development that meets the needs of the present without compromising the ability of future generations to meet their needs”
ESG
Environmental – Energy, Carbon, GHG, Water, etc.
Social
Corporate Social Responsibility: quality of life for employees, their families, and the community
Labor practices, healthcare, education, diversity, safety
Governance
Ethics, responsibility, Sarb-Ox
Tyco, Enron, WorldCom
Sustainable Economic Development

7. Triple Bottom Line Environment (Planet) Society (People)
What is your impact on the planet?
Society (People)
What is your impact on people?
Economic Performance (Profits)
How are your profits?
Measurement
Clearer alignment to corporate strategy
Long-term targets, measurement systems
Transparent reporting

8. Corporate America Catches On
GE – Frank Mantero, Director Corporate Citizenship Programs
Investing and Delivering in Citizenship
Audited, like financial statements
40% of value based on reputation
It’s not “giving” back – it’s a partnership
Wal-Mart
Sustainable Supply Chain
“We’re making money at this”
600% increase in carbon reporting consulting

9. Corporate Reporting

16. Conclusions
Companies are increasingly taking “Sustainability” more seriously
Exactly what does that mean?
Stay tuned. More in the next talk.