Green Services Opportunities

Will O’BrienJune 2011

Background

Definitions & Models

Sustainability: Embracers Seize the Advantage

Sustainability is The Key Driver of Innovation

Market Trends and Green Service/Career Opportunities  New (Green) Service Development Process

Learn More…

Topics

Background MBA, University of Albany Juris Doctor, Suffolk University Law School @40 years in Management and Consulting Teaching since 2002 Executive-in-Residence, Clark University Lecturer, Johns Hopkins University Director, Worcester Sustainable Business Leader Program Research Interests:

◦ Business and Environmental Sustainability◦ Change Management◦ Entrepreneurship◦ Project Management

Websites: www.greenprof.org www.sustainablebusinessleader.org/

"What we take for granted may not be here for our children." - Al Gore

Sustainable Development

Sustainable development seeks to meet the needs and aspirations of the present without compromising the ability to meet those of the future. Far from requiring the cessation of economic growth, it recognizes that the problems of poverty and underdevelopment cannot be solved unless we have a new era of growth in which the developing countries play a large role and reap large benefits.

Our Common Future, 1987The Brundtland Commission(UN World Commission on Environment &

Development)

Carbon Footprint

Source: New Zealand Business Council for Sustainable Development

Environmental Footprint

Source: “Measuring Environmental Footprint: A Financial Services Industry Case Study”, 2008, UNC

An environmental footprint is a measure of the amount of resources consumed and the amount of pollution; e.g., green house gas and waste created by an entity and by the firms that serve the entity, usually summarized by the equivalent are of land needed to assimilate these impacts.

Triple Bottom Line

The triple bottom line (abbreviated as "TBL" or "3BL", and also known as "people, planet, profit" or "the three pillars"[1]) captures an expanded spectrum of values and criteria for measuring organizational (and societal) success: economic, ecological and social. (Wikipedia)

Boston Consulting Group & MIT Sloan Management Review conduct survey about corporate sustainability - 2010

2009: 25% of respondents increasing commitment to sustainability

2010: 59% of respondents increasing commitment to sustainability

Growing enthusiasm for sustainability-driven management

Sustainability: The Embracers Seize Advantage!

Waste reduction

Energy efficiency

Example: Johnson & Johnson: spent $187 million in energy reduction projects. Expect IRR of 19%, approximate 247,000 megawatts of energy per year.

Top Sustainability Efforts

Survey discovers two groups of businesses:

Embracers = Leaders in sustainability◦ Sustainability ALREADY at core of business

Laggards = Cautious adopters◦ Moving towards a sustainable core

Embracers vs. Laggards

Large global or regional companies (workforce > 10,000)

Found in resource-intensive industries

Can be either service sector or product industries

Product Industries more likely to be embracers

Who are Sustainability “Embracers?”

Hong /Shanghai Bank Corporation (HSBC):

www.hsbc.com/1/2/sustainability

Bank of America:

http://environment.bankofamerica.com/commitment/our-commitment.html

Financial Services Companies

Sustainability strategies are necessary to be competitive◦ 70% believe they are outperforming competitors

Links must be made between sustainability and profitability. Move beyond “cost cutting” and “risk management.” ◦ i.e.. focus on increased margins, greater market share,

more innovation/blue ocean creation, access to new markets, etc.

Make sustainability an insider activity

The Embracer’s Philosophy

1. Move early — even if information is incomplete

2. Balance broad, long-term vision with projects offering concrete, near-term “wins”

3. Drive sustainability top-down and bottom-up

4. Aggressively de-silo sustainability — integrating it throughout company operations.

5. Measure everything (and if ways of measuring something don’t exist, start inventing them).

6. Value intangible benefits seriously.

7. Try to be authentic and transparent — internally and externally.

Seven Practices of Embracers:

Sustainability not as easy as it appears

How to choose metrics?

How to quantify the effects of sustainability strategies on operations?

On brand reputation?

On company name?

On consumer offerings?

Challenges for Embracers:

Both embracers and cautious adopters see the benefits of strategies such as improved resource efficiency and waste management.

Both recognize the brand-building benefits of developing a reputation for being sustainability driven.

Embracers are more aggressive in sustainability spending, but cautious adopters are increasing their commitments at a faster rate.

Embracers vs. Laggards

Making or Breaking a Brand Customers a HUGE

driver of sustainability efforts.

Sustainability can help build brand image.

Can hurt it too.

Shell fell from 5th to seventh in 2010, possibly as a result of the BP oil spill.

Why go Green?Five Mega-Trends:

1. Public policy

2. Investment

3. Employees

4. Customers

5. Accountability

Sustainability Drives Innovation

Sustainability Drives Innovation Stages:

#1 Viewing compliance as an opportunity#2 Making value chains sustainable#3 Designing sustainable products and

services#4 Creating “next-practice “platforms

“ Why Sustainability is Now a Key Driver of Innovation”, Harvard Business Review, 2009

Market Trends Green Service /Career Opportunities

Greater focus on energy costs • Renewable Energy Consulting• Energy Management Consulting• Buildings: Design, Weatherization• Carbon Trading

Increased focus on healthier living • Organic Agriculture• Toxic Detection, Reduction & Removal

Growing consumer awareness re: environmental sustainability

• Business Certification • Educational Programs• Marketing• Natural Tourism• Carbon Footprint Labeling• Waste Management Services

Risk mitigation for investors re: sustainability

• Sustainability Reporting• Sustainability Report Auditing

Mounting pressure from governments, competitors and other stakeholders on businesses, colleges & universities

• Environmental Law• Environmental Compliance & Planning• Sustainability Consulting

Market Trends & Opportunities

Carbon Footprint Labeling Jan. 23, 2007 Tesco, the largest supermarket chain in

Britain, has announced that it will begin labeling all 70,000 products on its shelves with the amount of carbon generated from the production, transport and consumption of those items.

Tesco in UKwww.tesco.com/greenerliving/greener_tesco/faqs/qa_carbon_footprint_and_labelling.page

http://www.terrapass.com/blog/posts/british-superma

Wal-Mart: Process for Greening Supply Chain

http://greenedgellc.com/posts/walmarts-process-for-greening-its-supply-chain

Strategic Sustainability Consulting www.sustainabilityconsulting.com/walmart

Carbon Footprint Labeling

Institute for Green Business Certification www.gbcertified.com/11-Home.asp

Green Business Bureau www.gbb.org/

Sustainable Business Leader Program (SBLP) www.sustainablebusinessleader.org

Note: looking for interns for Worcester SBLP

Business Certification

www.worldenergy.com/hello-2/

World Energy Solutions

HP: Energy Solution & Sustainability Management

http://www8.hp.com/us/en/solutions/solutions-detail.html?compURI=tcm:245-300963

Sustainability Consulting Services including energy audits, report audits:

    - Deloitte    - Accenture    - KPMG    - PWC    - GreenerU, Inc.

Environmental Resources Management (ERM) http://erm.com/

Sustainability Consulting

New Service Development Process

Learn more….. Clark GSOM courses:

◦ Corporate Strategy & Sustainability (tbd)◦ Eco-entrepreneurship (tbd)◦ Energy Management – SP12◦ Finance & Sustainability (tbd)◦ Green Business Management (UG)– SP12◦ Green Marketing – FA11◦ Green Supply Chain Management (tbd)◦ Sustainability Consulting Projects – FA11

Net Impact @Clark: Kate Hanley, Brad McNamara Sustainability Leaders Speaker Series – AY2011-12 Websites:

◦ www.greenprof.org ◦ www.sustainablebusinessleader.org