Strengthening Your Brand

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Strengthening Your Brand With Context-Based
Sustainability
Mark W. McElroy, Ph.D., Center for Sustainability
Performance, Deloitte Consulting, LLP Jed Davis,
Director of Sustainability, Cabot Creamery
Cooperative
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Presenter Deloitte Consulting

• Mark W. McElroy, Ph.D.
• Director of Research, Center
• for Sustainability Performance
• Deloitte Consulting LLP
• Waltham, MA
• mamcelroy_at_deloitte.com
• www.deloitte.com

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Our Agenda

• Quick introduction to context-based
  sustainability (McElroy)
• Case study from Cabot Creamery Cooperative in
  Vermont where context-based sustainability is
  being applied (Davis)

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Context-Based Sustainability

• Two broad forms of sustainability management,
  measurement and reporting
• Context-free
• Context-based
• Context consists of background social, economic
  and environmental conditions in the world (e.g.,
  water resources)

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Terminology

• Sustainability
• Vital Capitals
• Triple Bottom Line
• Organization- not product-centric

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Our School of Thought

• Basic principles
• Sustainability
• Vital Capitals
• Triple Bottom Line
• Organization- not product-centric
• Underlies our entire approach

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Context Also Key

• Imagine financial reports without costs!
• Passes for best practice in non-finl reporting
• Reports must have context to be meaningful
• Global Reporting Initiative (GRI) actually
  mandates inclusion of context
• Rarely if even followed

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Measurement Implications

• Metrics are unspecified
• Not defined by GRI
• Experimentation is the standard
• Sustainability quotients as a solution
• Denominators
• Numerators
• Scores expressed relative to 1.0

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Conclusions

• Context-based approach most compelling
• Internal use
• External use
• Strengthens brand
• By appealing to customers
• By appealing to consumers
• By appealing to shareholders

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Cabot Creamery Cooperative

• Context-based Sustainability in Action

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Presenter Cabot Creamery

• Jed Davis
• Director of Sustainability
• Cabot Creamery Cooperative
• Montpelier, VT 05602 USA
• Jdavis_at_cabotcheese.coop
• www.cabotcheese.coop

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Approach

• Stakeholders
• Well-being
• Duties Obligations
• TBL Impacts
• Metrics

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Sustainability Statement
Living within our means and ensuring the means
to live.
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Examples
Stakeholder Bottom Line Duty/Obligation Consumers
Social Safe Food Customers Economic Performa
nce Community Environmental Water Use
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Example Safe Food

• Stakeholders Consumers
• Bottom Line Social

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Example Performance

• Stakeholders Customers
• Bottom Line Economic

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Example Water Use

• Stakeholders Community
• Bottom Line Environmental

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Water Use Compared to Water Availability
Calculating Cabots fair share using economic,
per capita intensity data
Water Available for Natures Use
Available Renewable Water Resources
Water Available for Human Use
Water Available for Business Use
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