Action Plan for Sustainability and Environmental Responsibility Presentation to the National Association of Wholesaler. Distributors by George P. Nassos October 15, 2008 Stuart School of Business
The Need for Sustainability – The Environment’s Big Three • Energy – Depleting Fossil Fuels • Water – Growing Shortage • Global Warming: 3 -5º F. , 2050, 60 -80%, 1990 Stuart School of Business
Take Your Choice! • CERES Principles • 4 R’s • Energy Efficiency • Adopt Sustainable Strategies Stuart School of Business
More Choices! • Apply Systems Approach – Tunneling • Climate Strategy • Green Buildings Stuart School of Business
Can Start With Quick Fix – Adopt the CERES Principles • Protection of the Biosphere • Sustainable Use of Natural Resources • Reduction and Disposal of Wastes • Energy Conservation • Risk Reduction Stuart School of Business
CERES Principles (cont’d) • Safe Products and Services • Environmental Restoration • Informing the Public • Management Commitment • Audits and Reports Stuart School of Business
Four R’s • Analyze waste streams • 1 – Determine waste value and Reduce • 2 – Identify alternatives and Reuse • 3 – Recycle • 4 – Redesign Stuart School of Business
Energy Efficiency • Eco-efficient vs. Eco-effective • Initially, Focus on Efficiency • Then, Focus on Renewable Energy Stuart School of Business
Adopt Sustainable Strategies • The Natural Step Stuart School of Business
The 4 Conditions of The Natural Step • Do not systematically increase concentration of substances extracted from the Earth’s crust • Do not systematically increase concentrations of substances produced by society • Do not systematically mismanage the ecosphere • Resources are used fairly and efficiently in order to meet basic human needs worldwide Stuart School of Business
Adopt Sustainable Strategies • The Natural Step • Servicizing Stuart School of Business
Servicizing • Redefine commerce to deliver service and value, not material • Maintain control over product life cycle • Produce more cost efficient products Stuart School of Business
Application of Servicizing Strategy • Incandescent Light Bulbs • Interface – Commercial Carpeting • Electrolux – Washing Machines • du. Pont & Ford – Auto Assembly Paint Shop Stuart School of Business
Adopt Sustainable Strategies • The Natural Step • Servicizing • Biomimicry Stuart School of Business
Learn From Nature – Biomimicry • Solar panels • Abalone • Spider’s silk • Bi-valves • Cow’s enzyme • Rhinoceros horn Stuart School of Business
Adopt Sustainable Strategies • The Natural Step • Servicizing • Biomimicry • Base of the Pyramid Stuart School of Business
The Global Pyramid Purchasing Power >$15, 000 $1, 500 – 15, 000 <$1, 500 Population in Millions Wealthy Emerging Middle Class Low-Income Markets 800 1, 500 4, 000 (BOP) Stuart School of Business
The Great Leap Downward Bottom of the Top Base of the Pyramid Stuart School of Business
Driving Innovation from the Base of the Pyramid • Honda • LEDs • Phones • Nirma • Galanz Stuart School of Business
Adopt Sustainable Strategies • The Natural Step • Servicizing • Biomimicry • Base of the Pyramid • “BHAG” Stuart School of Business
Toilet Lid Sink Stuart School of Business
Advantages of Vertical Farming • • Year-around crop production No weather problems All food grown organically Eliminates agricultural runoff Farming in urban centers Reduces fossil fuel use Converts black and gray water Stuart School of Business
Vertical Farm Stuart School of Business
Tunneling • Diminishing Returns • Interface • House Insulation Stuart School of Business
Climate Strategy • Chicago Climate Exchange • Integrating Carbon Trade Stuart School of Business
Integrating Carbon Trade • Cap-and-Trade Market Stuart School of Business
Cap-and-Trade System Stuart School of Business
Integrating Carbon Trade • Cap-and-Trade Market • Offset Exchange Stuart School of Business
Offset Exchange System Stuart School of Business
Integrating Carbon Trade • Cap-and-Trade Market • Offset Exchange • Cap-and-Dividend Stuart School of Business
Climate Strategy • Chicago Climate Exchange • Integrating Carbon Trade • U. S. Climate Action Partnership Stuart School of Business
U. S. Climate Action Partnership • Companies trying to influence government • Six principles – – – Account for climate change Create incentives Be environmentally effective Create economic opportunity & advantage Be fair to impacted sectors Reward early action Stuart School of Business
Green Buildings -- LEED • USGBC • LEED Certification • EB – NC – CI – CS – H – ND Stuart School of Business
Measuring Your Success – With GEMI • What is material 1. Understand context 2. Assess issues 3. Develop key objectives • What and how to measure 4. Define key performance indicators and metrics • How to assure effectiveness 5. Evaluate and communicate metrics 6. Evaluate integration and improvement Stuart School of Business
Why Do Companies Seek Sustainability? • • Economics Image Marketing Social Consciousness Concern for the Environment Achieve Competitive Advantage Survival Stuart School of Business
The Importance of Commitment • Board Commitment • Officer Commitment • Manager Commitment • Employee Commitment Stuart School of Business
What Are Some Companies Doing – Or Not Doing • • Acquiring Sustainable Companies General Electric Panasonic (Matsushita) Interface USCAP – or -- CEED Shell Terra Choice Study Stuart School of Business
Why Sustainability Has Not Made a Breakthrough “There is an important job to be done, and Everybody expects that Somebody would do it. Anybody could do it, but Nobody did it. Somebody gets angry about that because it is Everybody’s job. Everybody thinks that Anybody should do it, but Nobody realizes that Everybody would not do it. It ends up that Everybody blames Somebody when Nobody does what Anybody has to do. ” Stuart School of Business
Thank you for this opportunity! George P. Nassos george. nassos@iit. edu 312 -906 -6543 Stuart School of Business
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