Sustainability and Climate Change

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Sustainability and Climate Change

• Mike Radcliffe
• RMT, INC
• May 18, 2009

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Sustainability
How is this relevant to todays conference?
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Sustainability
Balance the needs and interests on Planet, Profit
and People
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Un-Sustainable Models
Profit Only Maximizes near term profit, ignores
underlying natural resource base and social
contract.
Performance
Integration
Green Utopia Saves the Planet, but ignores
market realities and societys need for wealth
creation.
Performance
Integration
Philanthropy Preserves human dignity and social
systems, but undermines ecological and market
value.
Performance
Integration
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Un-Sustainable Models
Profit Only Maximizes near term profit, ignores
underlying natural resource base and social
contract.
Performance
Extinction
Integration
Green Utopia Saves the Planet, but ignores
market realities and societys need for wealth
creation.
Performance
Integration
Philanthropy Preserves human dignity and social
systems, but undermines ecological and market
value.
Performance
Integration
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Sustainability
A strategic framework for thinking about global
climate change

• Financial
• Physical risk to operations
• Supply chain product line
• Operating costs and margin
• Reputation and brand value

• Environmental
• Ecosystem impacts
• Drought and flood
• Raw material loss
• Extreme weather

• Social
• Public expectations
• Emerging legal frameworks
• New markets
• Product life cycle

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Climate change issues occur at every value chain
stage
New laws raise costs increase compliance risk
Risk
Brand switching to low carbon alternative
Low carbon customer requirements
Higher fuel costs emissions limits
Higher fuel costs emissions limits
Early movers improve market position
Alternative sustainable sourcing
Leverage product low carbon value new
applications, products services
Production process improvements makes company
more competitive
Opportunity
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Sustainability
A strategic issue mapping exercise

• Environmental

• Financial

• Social

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Summing Up
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Sustainability
How is this relevant to todays conference?

• Sustainability provides a pathway to continuation
  of the enterprise delay or denial leads to
  possible extinction
• Provides a framework for holistic thinking about
  climate change
• Sustainable value chain analysis identifies risk
  and opportunities for focused action
• Regulation is not the only risk opportunity
  driver

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Thank You
Michael Radcliffe RMT, Inc [phone] (414)
807-4318 Mike.Radcliffe_at_RMTINC.COM