SUSTAINABILITY STRATEGIES

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SUSTAINABILITY STRATEGIES ARE GOOD FOR BUSINESS
Sustainability Summit Santiago, Chile July 31,
2013
bobwillard_at_sympatico.ca
www.sustainabilityadvanta
ge.com
2
Capitalism is under siege The purpose of a
business must be redefined around creating
shared value (CSV) How to reinvent
capitalismand unleash a wave of innovation and
growth
Michael Porter and Daniel Kramer, HBR, Jan-Feb
2011
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CAPITALISM 2.0
Capitalism 1.0 Capitalism 2.0
Purpose of the Firm Maximize shareholder value Short-term Creating shared stakeholder value, including the Environment Long term
Legitimate capitals Financial Financial, Natural, Social, Human
Bottom lines Profit Profit, Planet, People
Source of financial capital Stock market Big financial institutions Absentee owners Stock market Smaller financial institutions Customers Employees Local communities
Market focus Global Local
Negative impacts Externalized Internalized
Accountability boundaries The firm The firms value chain, over its products life cycles
Transparency As little as possible Naked
Business model Take-Make-Waste Linear Borrow-Use-Return Circular, Cradle to Cradle Closed loop
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Over the last 10 years, the Sustainability
Imperative has emerged,magnified by escalating
public and governmental concern about climate
change, industrial pollution, food safety, and
natural resource depletion, among other issues.

David Lubin and Daniel Esty, HBR, May-June 2010
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Expect the Unexpected Building business value
in a changing world, KPMG, 2012
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Bottom-line
business case?
Profit could increase by at least 51-81 within
3-5 yrs
Expect the Unexpected Building business value
in a changing world, KPMG, 2012
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What if Lenders and Investors start to really
care about ESG performance?
51-81 more Profit
Access to capital?!
Expect the Unexpected Building business value
in a changing world, KPMG, 2012
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10 TRENDS FOR 2013

1. Companies take stock of natural capital
2. Sustainability becomes a matter of risk and
   resilience
3. Corporate reporting gets integrated
4. The sharing economy makes its mark
5. Commerce gets localized
6. M2M enables the rise of greener machines
7. Sustainability goes app crazy
8. Materiality becomes material for investors
9. Companies look past their (earlier) goals
10. Peak sustainability threatens corporate progress

State of Green Business 2013, GreenBiz, Feb.
2013.
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SUSTAINABILITY STRATEGIES ARE GOOD FOR BUSINESS
Sustainability Summit Santiago, Chile July 31,
2013
bobwillard_at_sympatico.ca
www.sustainabilityadvanta
ge.com