Sustainability: Why It Resonates – and Why It Doesn’t – Within Corporations Sustainability: Why It Resonates – and Why It Doesn’t – Within Corporations.

Sustainability: Why It Resonates – and Why It Doesn’t – Within Corporations Sustainability: Why It Resonates – and Why It Doesn’t – Within Corporations February 29, 2012 Copyright 2012 SustainEdge www.SustainEdge.com Greg Stine President & CEO SustainEdge

Elements Copyright 2012 SustainEdge www.SustainEdge.com EnvironmentalismQuality Corporate and Individual Philanthropy (Merck, Gates) Globalisation Financial Malfeasance Risk: Securities Insecurity Systems Thinking Governance (Sarbanes-Oxley, etc) Internet Performance Measurement Strategic Planning Corporate Financial Dominance Culture and Social Trends (e.g. The 99%, Millenials)

The CSR Alignment Matrix Socially Responsible Socially Irresponsible Profitable Not Profitable

Drivers for Sustainability  Brand/Corporate Reputation  Cost Savings  Market Opportunity  Customer Expectations  Statement of Intent  Executive ‘Worldview’ Copyright 2012 SustainEdge www.SustainEdge.com  Legislation  NGO/Watchdog Activities  Compliance and Risk Exposure  Higher Return on Capital  Investor Demands/Activism  Climate Change

Barriers to Sustainability Investments  Organizational Inertia  Fiduciary Responsibility  Competing Priorities or Expenditures  Conceptual Disagreement  Short-Term Thinking - Quarterly Earnings and Growth Expectations  Fear of the Unknown  Non-Exposure to Concepts  Misinformation or Bias Copyright 2012 SustainEdge www.SustainEdge.com  Lack of Expertise  Up Front Costs  Lacking “Conditions”  Legislation  Investor Demands/Activism  NGO/Watchdog Activities  Executive ‘Social Alignment’  Customer Expectations  Marketing “Catastrophe”

Barriers to Sustainability Investments Copyright 2012 SustainEdge www.SustainEdge.com The {wimp} Factor “ gentle ” “safe” “healthy” “mild” “ strength ” “ power ” “ toughness ” “ Manly ” TraditionalSustainabl e (The Sustainability Liability: Potential Negative Effects of Ethicality on Product Preference, Luchs, Michael G., Naylor, Rebecca W., et al, Journal of Marketing – September 2010)

Recent Data Supports Sustainability A recent Harvard Business School longitudinal study of 180 companies between 1993-2010 indicates that: →High Sustainability companies significantly outperform their Traditional firms over the long-term →Overall Financial Performance (23%) →Stock Price (47%) →The outperformance is stronger in sectors where the customers are individual consumers instead of companies, →Consumer product companies compete on the basis of brands and reputations →Suppliers and manufacturers significantly depend upon extracting large amounts of natural resources (The Impact of a Corporate Culture of Sustainability on Corporate Behavior and Performance, Robert G. Eccles, et. al, Harvard Business School – November 2011) Copyright 2012 SustainEdge www.SustainEdge.com

Case Study: Apple (or “What happens when you ignore sustainability”) Ranking –Ranked 117 th in Newsweek’s 2011 Green 500 list. Key Apple Financials 2011 Revenue: $128 billion 2011 Net Income: $33 billion 2012 1 st Quarter Revenue:$44 billion Net Income:$13 billion Copyright 2012 SustainEdge www.SustainEdge.com

Case Study: Apple Sustainability Issues Facing the Company  Transparency  Supply Chain  Availability of Raw Materials  Human Rights  Toxic Substances in Products (e.g. arsenic, BFRs, PVC)  Environmental Footprint  Public Relations  Sustainability Nazis Copyright 2012 SustainEdge www.SustainEdge.com

Case Study: Apple Sustainability Issues Facing the Company  Transparency  Supply Chain  Availability of Raw Materials  Human Rights  Toxic Substances in Products (e.g. arsenic, BFRs, PVC)  Environmental Footprint  Public Relations  Wrath of the Sustainability Nazis Copyright 2012 SustainEdge www.SustainEdge.com

About SustainEdge Copyright 2012 SustainEdge www.SustainEdge.com Basics –Formed in St. Louis in 2008. –Offices in St. Louis & New York City Metro –Only Sustainability Firm in: MO, KS, IA, OK, AR, TN, KY –Selected by Institutional Investor Magazine to Provide Case Studies on Corporate Sustainable Performance Products & Services –Strategic Sustainability Planning –Return on Sustainability (ROS®) –Sustainability Performance Measurement (Metrics & Technology)

Greg Stine President/CEO, SustainEdge GStine@SustainEdge.com Cell: 314.808.1104 28 Copyright 2012 SustainEdge www.SustainEdge.com SustainEdge 100 Chesterfield Business Parkway, Suite 200 Chesterfield, MO 63005 314.596.2764

Sustainability: Why It Resonates – and Why It Doesn’t – Within Corporations Sustainability: Why It Resonates – and Why It Doesn’t – Within Corporations.

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Sustainability: Why It Resonates – and Why It Doesn’t – Within Corporations Sustainability: Why It Resonates – and Why It Doesn’t – Within Corporations.

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Presentation on theme: "Sustainability: Why It Resonates – and Why It Doesn’t – Within Corporations Sustainability: Why It Resonates – and Why It Doesn’t – Within Corporations."— Presentation transcript:

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