Transcript International Project Management Day Webcast:

Turning Green into Gold: The Business Case for
Sustainability
• Bonnie Nixon
– Environmental Sustainability
Expert and former Director of
Environmental Sustainability,
Hewlett-Packard
– Vice President of Circlepoint,
Environmental Mediation,
Communications and Planning
Firm
– Public Relations Lead for Boston
Harbor Cleanup Project
– Resident Scholar at Stanford and
Executive Faculty at Presidio
– Began career at Three Mile Island
© 2009 International Institute for Learning, Inc.
Turning Green into Gold:
The Business Case for Sustainability
Presented by
Bonnie Nixon
Environmental Sustainability Expert and
former Director of Environmental
Sustainability, Hewlett-Packard
© 2009 International Institute for Learning, Inc.
Achieving Business and Sustainability Goals
Business drivers:
IMPACT
• Cost
reduction
• Customer
opportunity
Operations
& Supply Chain
Products
& Services
Global
Environment
Low carbon
economy
• Productivity
• Environmental
stewardship
Products
services
solutions
Priorities:
• Energy
efficiency
• Resource
conservation
Supply chain
Operations
• Reuse/Recycle
• Sustainable
ecosystems
SCOPE, COMPLEXITY,
TIME
© 2009 International Institute for Learning, Inc.
What’s the Business Case for Sustainability?
It’s what our customers want first & foremost
Reduce
Costs
“How can I reduce my energy
consumption to lower costs
and help meet our
environment goals? Today
about 40% of my Opex goes
to energy“.
“Is there a way to eliminate
waste and improve
productivity and efficiency?”
“How can we use water more
efficiently or increase my
purchase of renewable energy
recognizing that they are
becoming scarce resources?”
Mitigate Risk
“My operations are being
impacted by power and
cooling capacity”.
“Help me reduce our carbon
footprint”.
“How do I manage for future
regulations related to
embedded carbon in products
or elimination of toxins which
could create costly recalls?”
© 2009 International Institute for Learning, Inc.
Enable Growth
“How can we obtain new
customers by offering more
sustainable products and
services?”
“How can you help enable our
current investments?”
“How do we innovate for a lowcarbon economy?”
Reduce Cost and Reduce the Environmental
Impact of Operations
Reduce our energy
consumption and GHG
emissions
Telepresence technology can
simulate face-to-face
meetings, enabling
interactive collaboration while
avoiding CO2 emissions.
© 2009 International Institute for Learning, Inc.
• Data Center and Real Estate
Consolidation
• Efficiency and cooling
• Optimization of IT
infrastructure
• Renewable energy purchases
• Employee engagement
Mitigate Risks: Look at Environmental Regulations
Trend
Challenges: new countries, new subject areas
New regulations to
implement
120
Cumulative eco100
regulations
in force
80
60
40
20
0
2004
2005
2006
Implementation
2007
2008
Emerging
2009
2010
Interpretation
2011
2012
future
In force (cumulative)
Notes: pan-EU directives listed as a single regulation (vs. 28+ individual country regulations)
© 2009 International Institute for Learning, Inc.
Mitigate Risks and Put a Comprehensive Climate
Policy Position in Place
•
Consider unique opportunities
to reduce CO2 while
developing the economy
• Policy and industry action is
necessary to enable the largescale deployment of lowcarbon solutions
© 2009 International Institute for Learning, Inc.
Consider the following policy and industry
actions:
• Monetize carbon
• Establish complementary fiscal and other
investment incentives
• Coordinate and facilitate the development of
methodologies and standards
• Implement carbon and resource accounting
management software and systems
• Leverage spending
• through pilot projects
• And procurement guidelines
• Facilitate public-private partnerships
• Educate and inform
Enable Growth and Deliver Solutions Designed for
the Environment
Product
design
Manufacture
Use
Reducing impact throughout the product life cycle
© 2009 International Institute for Learning, Inc.
Consider Whole Systems Design
•
Companies need to look at the entire eco-system and
determine the total cost of ownership taking both CAPEX and
OPEX into account
•
It’s time to move from the current business model to a service
economy model
•
Current metrics reward customers and service providers for the
opposite of what both parties want, which is low cost and high
value
•
Traditional business processes and billing mechanisms are
under-utilized, expensive, and inefficient
© 2009 International Institute for Learning, Inc.
Consider the Entire Value Chain
COLLABORATION IS
KEY
•
•
•
•
Manufacturing
Packaging
Logistics/transportation
Assessment, improvement
and compliance
• Carbon emissions reporting
• Transparency and reporting
10
© 2009 International Institute for Learning, Inc.
Partner with Suppliers
External
reporting
Capability
building
Corrective
action
Supplier
audit
Supplier
assessment
Environmental
protection
Ethics - uphold
the highest
standards
Code of
conduct
Corporate
policy
© 2009 International Institute for Learning, Inc.
Labor - treat
employees with
dignity and
respect
Management
system - drives
sustainable
solutions by
promoting root
cause analysis
Health and
safety - evaluate
and control
exposure to
hazards
How do I reduce, repurpose, renew, donate or
recycle?
Trade-in
Leasing
Donation
Recycling
Asset recovery
Remarket/refurbish
© 2009 International Institute for Learning, Inc.
Explore Constructive Partnerships and Strategic
Alliances and Minimally Track
Government
IMPACT
Customers
Investors
Media
Stakeholders
Industry
NGOs
Workers
© 2009 International Institute for Learning, Inc.
Employees
Communicate Continuously
Communicate clearly with all your audiences using internet
and social engagement tools.
Make your website user friendly and customer-centric.
Engage your employees at home, at work and in the
community
© 2009 International Institute for Learning, Inc.
IMPACT
Lifecycle Approach to Sustainability
Innovate
Low carbon economy
Exercise your influence
Use
Make it simple
Supply Chain
Operations
Walk the talk
© 2009 International Institute for Learning, Inc.
SCOPE, COMPLEXITY, TIME
Business Case towards a Sustainable Economy
REDUCE
COSTS
Reduce energy intensity
and carbon footprint
MITIGATE
RISKS
Substitute carbon-intensive
processes by low-carbon ones
ENABLE
GROWTH
Enable low-carbon
economy management
• Energy efficiency
• Regulatory strategy
• Complete assessment
• Conservation
• Solid policy platforms
• Transmaterialization
• Carbon reporting
• Invest in R&D
• Travel substitution
• Innovate for
• Operational efficiency
• Resource management
• CO2 emissions
reductions
• Dematerialization
sustainability
• Integrate social &
environment
© 2009 International Institute for Learning, Inc.