Transcript Slide 1

Education for Sustainability:
Relevance to Corporations
NESDEC Meeting
January 31, 2008
Bob Willard
[email protected]
www.sustainabilityadvantage.com
UN Decade of Education for Sustainable
Development (DESD), 2005-2014
•
UN General Council Resolution Dec 2002
•
UNESCO is the lead, coordinating UN Agency
•
Mainly up to each country / state
•
Government, NGO, corporate, etc. collaboration
•
Touches formal, non-formal, informal education
•
4 major thrusts of ESD
1.
2.
3.
4.
Public awareness and understanding
Access to quality basic education
Reorienting existing education
Training programs for all sectors
Math problem: Early 1960s
Problem:
A logger sells a truckload of lumber for $100.
His cost of production is four-fifths of this price.
What is his profit?
Answer:
$20
The Evolution of Teaching Math, Virginia Department of Education web site
Math problem: Early 1970s
Problem:
A logger sells a truckload of lumber for $100.
His cost of production is four-fifths of this price, or $80.
What is his profit?
Answer:
$20
The Evolution of Teaching Math, Virginia Department of Education web site
Math problem: Late 1970s
Problem:
A logger exchanges a set, "L", of lumber for a set, "M",
of money. The cardinality of set "M" is 100. Each
element is worth one dollar. Make 100 dots
representing the elements of the set "M."
The set "C", the cost of production, contains 20 fewer
points than set "M.“ Represent the set "C" as a subset
of set "M" and answer the following question:
What is the cardinality of the set "P" of profits?
Answer:
20
The Evolution of Teaching Math, Virginia Department of Education web site
Math problem: 1990s
Problem:
A logger sells a truckload of lumber for $100.
His cost of production is $80 and his profit is $20.
Rewrite and underline the “$20.”
Answer:
$20
The Evolution of Teaching Math, Virginia Department of Education web site
Math problem: 2014?
Problem:
By cutting down beautiful trees and desecrating the
precious forest, a logger makes $20.
What do you think of this way of making a living?
Topic for class participation:
Do a role play of how the forest birds and
squirrels -and the logger’s children - feel as
the logger cuts down the trees.
The Evolution of Teaching Math, Virginia Department of Education web site
UN Decade of Education for Sustainable
Development (DESD), 2005-2014
•
UN General Council Resolution Dec 2002
•
UNESCO is the lead, coordinating UN Agency
•
Mainly up to each country / state
•
Government, NGO, corporate, etc. collaboration
•
Touches formal, non-formal, informal education
•
4 major thrusts of ESD
1.
2.
3.
4.
Public awareness and understanding
Access to quality basic education
Reorienting existing education
Training programs for all sectors
Sustainability 3-Legged Stool
Sustainability
Economic Leg
Good Jobs
Fair wages
Security
Infrastructure
Fair Trade
Environmental Leg
0 Pollution & Waste
Renewable Energy
Conservation
Restoration
Social Leg
Working conditions
Health services
Education services
Community & Culture
Social justice
Quality of Life / Genuine Wealth / Genuine Progress
Corporate Sustainability 3-Legged Stool
Sustainability – Sustainable Development (SD)
Environmental, Social, Governance (ESG)
Corporate Social Responsibility (CSR)
Corporate Responsibility (CR)
Triple Bottom Line (TBL) – 3Es – 3Ps
Economy - Profits
Growth, Jobs,
Taxes
Products
Services
Environment - Planet
Eco-efficiencies
Eco-effectiveness
Restorative
Equity - People
Employees
Community / Culture
World
Smart Business 3-Legged Stool
Asset Management
Financial
Capital
Built
Capital
Natural
Capital
Human
Capital
Social
Capital
Sustainable Enterprise Academy (SEA)
Mission
To assist business in the transformation
to corporate sustainability by providing senior executives with
the vision, education, tools and support necessary to
champion sustainable development in their organizations
.
NA’s premier executive education program on sustainability
Based at the Schulich School of Business, York University
Schulich is consistently ranked among the top 3-5 business
schools in the world at teaching sustainability
A 3 ½ day intensive residential seminar
Targeted to senior executives of multi-national corporations
30-50 participants at each session:
Level is strategic, not managerial or technical
SEA Seminar Outline
Company Value “Iceberg”
Balance Sheet
Tangibles
Financials
Intangibles - Nonfinancials
Brand Image - Reputation
Stakeholder Relationships
Market Capitalization
Company Value “Iceberg”: 1981
Balance Sheet
Tangibles
Financials
Intangibles - Nonfinancials
Market Capitalization
Arthur D. Little, The Business Case for Corporate Citizenship , 2002
83%
17%
Company Value “Iceberg”: 1998
Tangibles
Financials
Intangibles
Nonfinancials
Arthur D. Little, The Business Case for Corporate Citizenship , 2002
29%
71%
Sea of Demanding Stakeholders
Financials
Economists
NGOs
Employees
Global Markets
Media
The Public
Nonfinancials
Customers
Competitors
Banks
Governments
Investors
Insurers
Scientists
Sea of Demanding Stakeholders
Two-Part Business Case
Financials
NGOs
Employees
Global Markets
Media
The Public
Economists
Nonfinancials
Customers
Competitors
Banks
Governments
Investors
Insurers
Scientists
Mega-Issue Storm Clouds
Pollution & Health
Climate Crisis
Water Crisis
Other …
Pandemics
Energy Crisis
Erosion of Trust
NGOs
Employees
Economists
Global Markets
Media
The Public
Investors
Customers
Competitors
Banks
Governments
Insurers
Scientists
The Debate is Over …
Awakened Public - Consumers
The “Goracle factor”
+ Hurricane Katrina ($125B, 1,833 deaths)
+ Weird weather globally
+ Rising gas prices + IPCC reports + …
70-80% of consumers say are switching to “green” companies
20% actually did in 2006;
LOHAS sector: $200B in 2007; $420B by 2010; $845B by 2015
Warnings from Economists
Stern Review Report (Oct 2006)
Former World Bank chief economist, Nicholas Stern
Quantified warnings in the 1997
Economists’ Statement on Climate Change
1. Cost of climate change mitigation:
1% of annual global GDP by 2050
if we act now; 5-20% if we act later
2. Benefits of $2.5T if we act now;
global depression if we do nothing
3. Must stabilize GHGs:
Use carbon taxes and / or
a cap-and-trade system;
deploy low-carbon technologies;
remove barriers to energy efficiency
Risk of Becoming a “Risky Investment”
Carbon Disclosure Project
2003
Institutional Investors
35
2007
315
Value of Assets Held
$4.5T $41T
Companies Surveyed
FT500 2,400
Q. Revenue, regulatory, or physical risks to value
from climate change?
A. Carbon-intensive manufacturers could lose 40% of
their market value; Banks could lose 29% of value
Two-Part Business Case
Financials
NGOs
Employees
Global Markets
Media
The Public
Economists
Nonfinancials
Customers
Competitors
Banks
Governments
Investors
Insurers
Scientists
One More Goal … or an Enabling Strategy?
Profit
Share price
Growth
Revenue
Customer care
Expense savings
Competition
Market share
Leadership
Governance
Innovation
Speed to market
New markets
Talent wars
Productivity
Motivation
Brand image
Managing risks
Compliance
Supply security
Typical Large Company Benefits
Revenue
Profit
Workforce
Avg. Employee Salary
Avg. Manager Salary
$44,000,000,000
$3,000,000,000
120,000
$60,000
$70,000
Potential profit increase: +38%
+ Energized employees + Improved corporate image
+ Competitive advantage + Positioned for the future
Lead It Like Any Culture Change
1. Walk the talk as senior leaders
Integrate into vision - mission – strategies
Business strategy vs. philanthropy
Avoid “green-washing” hype
2. Educate the whole company
Solicit employee ideas - help
3. Align with measurement & reward systems
7 Benefit Areas
1. Reduced recruiting costs
2. Reduced attrition costs
3. Increased employee productivity
4. Reduced expenses in manufacturing
5. Reduced expenses at commercial sites
6. Increased revenue - market share
7. Lower insurance & borrowing costs
… yielding a profit increase of +38%
Potential Improvements
1. Reduced recruiting costs
-1%
2. Reduced attrition costs
-2%
3. Increased employee productivity
4. Reduced expenses in manufacturing
+10%
-5%
5. Reduced expenses at commercial sites -20%
6. Increased revenue - market share
+5%
7. Lower insurance & borrowing costs
-5%
… yielding a profit increase of +38%
Two-Part Business Case
Financials
NGOs
Employees
Global Markets
Media
The Public
Economists
Nonfinancials
Customers
Competitors
Banks
Governments
Investors
Insurers
Scientists
In Summary …
Sustainability is smart business
New market forces - risks are in play
Public expectations are rising
Talk business language
Show relevance to existing priorities
You are not alone; find partners
Opportunity for leadership
CEO
Financials
Besieged by
important stakeholders
9 AM – 5 PM
Economists
NGOs
Employees
The Public
Media
Nonfinancials
Customers
Competitors
Banks
Governments
Global Markets
Investors
Insurers
Scientists
Sustainability “Pincer Strategy”
9 AM – 5 PM
“CEO”
24/7
“Daddy”
Besieged by
important stakeholders
Besieged by
family / kids
Education for Sustainability:
Relevance to Corporations
NESDEC Meeting
January 31, 2008
Bob Willard
[email protected]
www.sustainabilityadvantage.com