1. SUSTAINABILITY STRATEGIES ARE GOOD FOR BUSINESS bobwillard@sympatico.ca www.sustainabilityadvantage.com Sustainability Summit Santiago, Chile July 31, 2013

2. “Capitalism is under siege … The purpose of a business must be redefined around creating shared value (CSV)… How to reinvent capitalism—and unleash a wave of innovation and growth” Michael Porter and Daniel Kramer, HBR, Jan-Feb 2011

3. CAPITALISM 2.0 Capitalism 1.0Capitalism 2.0 Purpose of the Firm Maximize shareholder value; Short-term Creating shared stakeholder value, including the Environment; Long term Legitimate capitalsFinancialFinancial, Natural, Social, Human Bottom linesProfitProfit, Planet, People Negative impactsExternalizedInternalized Accountability boundaries The firmThe firm’s value chain, over its products’ life cycles TransparencyAs little as possibleNaked Business modelTake-Make-Waste; Linear Borrow-Use-Return; Circular, Cradle to Cradle; Closed loop Source of financial capital Stock market; Big financial institutions; Absentee owners Stock market; Smaller financial institutions; Customers; Employees; Local communities Market focusGlobalLocal

4. “Over the last 10 years, the ‘Sustainability Imperative’ has emerged, magnified by escalating public and governmental concern about climate change, industrial pollution, food safety, and natural resource depletion, among other issues.” David Lubin and Daniel Esty, HBR, May-June 2010

5. “Expect the Unexpected: Building business value in a changing world,” KPMG, 2012

6. Bottom-line business case? Profit could increase by at least 51-81% within 3-5 yrs “Expect the Unexpected: Building business value in a changing world,” KPMG, 2012

7. What if Lenders and Investors start to really care about ESG performance? Access to capital?! 51-81% more Prof it

8. 10 TRENDS FOR 2013 “State of Green Business 2013,” GreenBiz, Feb. 2013. 1.Companies take stock of natural capital 2.Sustainability becomes a matter of risk and resilience 3.Corporate reporting gets integrated 4.The sharing economy makes its mark 5.Commerce gets localized 6.M2M enables the rise of greener machines 7.Sustainability goes app crazy 8.Materiality becomes material for investors 9.Companies look past their (earlier) goals 10.Peak sustainability threatens corporate progress

9. SUSTAINABILITY STRATEGIES ARE GOOD FOR BUSINESS bobwillard@sympatico.ca www.sustainabilityadvantage.com Sustainability Summit Santiago, Chile July 31, 2013