1.  S60 Sustainability: Workplace June 2010

2. Two objectives today… The case for change Why does sustainability matter from an employee’s perspective? A framework for embedding change How can we embed sustainability into business as usual?

3. PricewaterhouseCoopers June 2010 Slide 3 Sustainability: Workplace Some numbers…. of employees would recommend their company if they feel it is environmentally responsible v fewer than 50% if it is not 1 of ‘millennials’ would consider leaving an employer whose corporate responsibility behaviour no longer meets their expectations 2 of employees who consider their employers to be paying enough attention to environmental protection and sustainable development exhibit high levels of commitment 1 Employees most committed to their employer perform 20% better and are 87% less likely to leave the organisation 3 of CEOs recognise their organisations’ responsibility to create management structures that reward long-term thinking as a critical or important element of a solution to climate change 4 75% 86% 75% 87% 74% 1 Engaging employees through corporate responsibility, Ipsos MORI Employee Relationship Management, Nov 2006 2 PwC Managing Tomorrows People December 2008: pwc.com/managingpeople 2020 3 Driving Performance and Retention Through Employee Engagement, (2004), Corporate Leadership Council 4 PwC 12th Annual CEO survey 2009: pwc.com/ceosurvey

4. PricewaterhouseCoopers June 2010 Slide 4 Sustainability: Workplace So, does it matter if employees are engaged with your sustainability strategy? What is on the mind of CEO’s? 1 PwC 13th Annual Global CEO survey 2010 2 Engaging employees through corporate responsibility, Ipsos MORI Employee Relationship Management, Nov 2006 3 Towers Perrin-ISR (2006) The ISR Employee Engagement Report Why 62% of CEOs agreed that climate change initiatives, would above all other benefits, provide a reputational advantage with key stakeholders including employees 1 75% of highly engaged employees believe they can impact cost, quality and customer service, verses 25% of disengaged employees. 3 More engaged colleagues More engaged customers 74% of the public agree that they would believe the word of an employee over that of a company advert regarding a company's contribution to society and the environment. 2 Essentially, engaged employees provide better customer service which translates to increased financial performance because they understand how their work can help the company achieve its’ strategy and objectives and their loyalty to the company motivates them to release discretionary effort.

5. PricewaterhouseCoopers June 2010 Slide 5 Sustainability: Workplace And as the “War for Talent” starts again….

6. PricewaterhouseCoopers June 2010 Slide 6 Sustainability: Workplace Two key messages… 1. Sustainability is no different from any other business change initiative 2. Embedding sustainability into the business is no different from embedding any other changes into a business

7. PricewaterhouseCoopers June 2010 Slide 7 Sustainability: Workplace HR plays an important role in embedding sustainability Not the sole accountability of an CSR Manager HR owns employee engagement. Sustainability, CSR, whatever you call it is a key driver of engagement. CSR – HR = PR -If employees are not engaged, CSR / Sustainability becomes an exercise in public relations. -The credibility of an organisation will become damaged when it becomes evident that a company is not ‘walking the talk’.”

8. PricewaterhouseCoopers June 2010 Slide 8 Sustainability: Workplace A framework for embedding change Leadership l Create leadership resolve l Enhance leadership teamworking l Build leadership change skills Culture Develop: Values; Behaviours; l Mindset Change Strategy l Assess change readiness l Select best change configuration l Establish change governance People Performance Integrate: l Performance management l People practices Change Vision l Understand strategic vision & make comprehensive & operational l Create compelling change story Organisation Design: l Reporting structure l Roles & Performance measures l Workgroups l Integrating mechanisms Benefits l Build business case l Quantify benefits l Sustain benefits Commitment l Build teams l Manage stakeholders & communicate l Transfer knowledge and skills l Manage resistance Deliver Business Benefits Develop culture Define change strategy Build commitment Create change vision Design organisation Manage people performance Develop Leadership

9. PricewaterhouseCoopers June 2010 Slide 9 Sustainability: Workplace Adapting it to embed sustainability Deliver Business Benefits Develop culture Define change strategy Build commitment Create change vision Design organisation Manage people performance Develop Leadership Share the broader context – from both a business and personal perspective (answer the question, “what’s in it for me?”) Begin with some company mandates (set all printers to double-sided printing, adjust thermostats) Provide examples of how one employee can make a real difference (removing a single light bulb from every vending machine at all walmart locations saved $1 million) Leverage the diversity of your company – allow for different ways to engage in sustainability initiatives (recycling, volunteering, leading a team) Communicate early and often and in different formats (signs, newsletters, conference calls, meetings, pod-casts, tweets) Make sustainability part of every employee’s job description Develop metrics by company, by department, and by individual and report out progress (track effect of recycling program – reduction in waste, reduction in trash removal) Provide opportunity for employees to generate ideas (green teams) Provide a format for sharing ideas across departments, locations, and countries (intranet, electronic newsletters) Start with initiatives that everyone can participate in (establish recycling programs, remove all styrofoam products from cafeteria) Develop ongoing training programs (videos, podcasts, lunch & learns) Tie variable compensation to progress on sustainability initiatives (in manufacturing plant, part of manager’s bonus is tied to drop in energy usage) Sponsor competitions (most ideas, most cost savings, greatest effect on community) Make new behaviour easy and old behaviour difficult (provide ceramic coffee mugs next to the coffee machine and move the paper coffee cups to the far end of the cafeteria) Create a vision of sustainability for your company (what does sustainability look like?) Demonstrate c-suite support (what steps will management take?) Explain why sustainability is important to your business in particular (what benefits will be gained? Cost-savings, improved image in the community, etc) Identify and allocate resources (budget time and money) Put infrastructure in place to generate ideas Identify what you are currently doing well and why

10. PricewaterhouseCoopers June 2010 Slide 10 Sustainability: Workplace Making it part of the DNA… A recent Canadian study 1 found that the top three best practices to help create a sustainable culture were: Collaborate with other organisations. Find NGOs and other businesses who value sustainability and work with them to implement environmental and social programs. Create a safe place for bold ideas. Reframe business innovation within the context of sustainability. Tap into grassroots employee energy. Empower employees to be sustainability champions within the organisation and encourage them to set their own sustainability targets for performance reviews. 1 Network for Business Sustainability and Canadian Business for Social Responsibility: Embedding Sustainability in Organizational Culture

11. PricewaterhouseCoopers June 2010 Slide 11 Sustainability: Workplace Example: Embedding sustainability into the workplace - PwC UK Issue: Staff were making changes at home to reduce their environmental impact but were not carrying these behaviours into the workplace Challenge: How could we link the employee engagement agenda to the firm’s targets around reducing carbon and working in our communities Solution: Introduced sustainability + schools programme. -Focus on adopting sustainable behaviours (reducing energy and resource use, reusing materials, recycling waste). -Measure savings and contribute to trust fund for local schools (used to teach children how to lead more sustainable lives and their impact on the planet) Result: GBP100,000 financial savings (6 months) and increase in employment engagement survey scores

12. PricewaterhouseCoopers June 2010 Slide 12 Sustainability: Workplace $ $ Business $

13. © 2010 PricewaterhouseCoopers. All rights reserved. “PricewaterhouseCoopers” refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity. *connectedthinking is a trademark of PricewaterhouseCoopers LLP (US).  Drives employee emotional commitment via organisational levers Increases employee discretionary effort, ie going the extra mile for the company Increases customer satisfaction and customer loyalty Improves revenue growth and profitability Sustainability Programme Linking it all together… …the Sustainability value chain