Sustainability AnalysisBank of America & The Pennsylvania State University

Dakota Nelson | Monica Chennavasin | Karan Kalaria

Akshay Kumar | Jackie Stivala | Shawn Conway

"Men have forgotten this truth, said the fox. But you must not

forget it. You become responsible, forever, for what

you have tamed."

Define:

process for both improving and creating a range of opportunities

enable individuals and communities to reach their full potential over a sustained period of time

economic, social, and environmental systems

Triple Bottom Line

History of Sustainability

1840-1870 Early

1960’s

Early 1980’s 1987

Industrial Revolution Growth in

Poverty

Introduction of the

Production of Environment

Accepted Definition of Sustainabilit

y

Social Concept

Maintains firmness

of:

social structur

e

cultural structur

e

Important to Consider Social Inequality :Divided- Nationally Ethnicity Social Class Ownership of Wealth Gender Life Opportunities

Influenced by Environmental Degradation

Solving Social Inequality Issues = Attempting Power Imbalances

Social Concept

Social Values

Principles of Intragenerational

Equity

Principles of Intergenerational

Equity

Fairness

Space

Fairness

Time

Related to cultural heritage, acceptance of a commonly accepted way of • Democratic Values• Family Values • Belief in Certain

Principles (fairness and justice)

Environmental

Focuses on

Stability of:

Biological

Systems

Physical Systems

Footprint =

IMPACT Country Region City

Direct Greenhouse

Gas Emission

Water Use Energy Consumption

Waste Generation

Economic

Maximizes Generated IncomeWHILE…

Maintaining The Stock of Assets

• What kind of capitals should be maintained?

Main Measure of Economic Performance

=GDP

Designed to Measure Levels

of Economic Activity

Does not take into account the consumption of

damages of natural resources

Key Sustainable Developmental Challenges

2.8 billion people,

survive on less than $2 a day

Over 800 million

people are malnourishe

d

1.3 billion people live

without clean water/ proper

sanitation means

Over 1 billion people do not have access to electricity, safe shelter, or clean air

POVERTY

HUMAN WELLBEING

INEQUITY

UN Millennium Development Goals (MDGs)

What is it? - A blueprint agreed to by all the world’s countries and leading development institutions, which provides a basis for measuring global progress toward sustainable development highlighting eight main goals:

Companies & MDGs

Harness innovation and skills in order to:• Create wealth and employment• Offer essential goods and services• Implement responsible business practices

Human Rights Labor Safety Standards

Strengthen & Build Public

Institutions

Support Community

Projects

Provide Donations & Contribution

s

Engage in Advocacy

Today,Focus has shifted.Emphasis is now placed on:

Navigating Around Challenges

Addressing MDGs

In a 2013 survey,

62% of

business leaders stated that integrating sustainability was the biggest challenge

Although challenging,A culture of sustainability yields a competitive advantage – Increased productivity and reduced costs Improve financial and investment opportunity Minimize carbon footprint and improve energy efficiency

Spent the past several years constructing goals aligned with CSR focus areas

Implements them into their values

Bank of America- Est. 1904

“We’re here to build meaningful connections that make your financial life

better”

150 Countries

230,000 Employees

$$11.4

Billion Net Income

5th in Total Market Cap

People

Responsible Business Practice

Diversity

Leadership & Service

Responsible Business Practice

Code of Ethics

Reducing Non-Core

Ethics

Managing Risk

Assisting Customer

s

Assisting Customers and Communities

Loan Modificatio

ns

1.3 million mortgages

Outreach Efforts

CAC’s

Community Developme

nt

Property Donations

Home Abandonment

Service and Leadership

Volunteering

Neighborhood Builders

Donations

Volunteering

Mentoring

Financial education

Helping non-profits

Preserving parks and communities

2,000,000 hours for 2013

Neighborhood Builders Program

Largest non-profit leadership investment

700 Organizations

1,200 leaders

95% is health, human services, and community development

$200,000 donation

Economic Sustainability

Small Businesses

$10.7 billion in new credit

$700 billion for clients

$87.5 billion in

new mortgages

$11.4 billion new

income

“One of the strongest balance

sheets”

$3.2 billion stock

purchase

Small Businesses & Mortgages

“…continually engaging with individuals and communities to help support the continued recovery and

strengthening of the U.S. housing market”

“Connecting small business owners with the resources necessary to

sustain and expand their operations promotes economic growth and job

creation”

Environmental Sustainability

2004-2009

18% increase in GHG (Goal was 9%) 200

7

$20 billion committed to environmental

initiatives

Low Carbon Vehicle

Program

2010

Bank of America Tower 201

3

$50 billion committed to environmental

initiatives

$500 million dollar green

bond

Bank of America Tower One Bryant Park

First commercial sky scarper to achieve LEED

Energy Production

Gray Water System

Garden and Compost

https://www.youtube.com/watch?v=fGD29XwDbjE

Green Bond

Silicon Ranch, Simon Solar

$500 Million bond,

Finance Renewable Energy

City of Los Angeles

Antioch United School District

Penn State & Sustainability

Penn State practices sustainability

regularly…Two organizational areas:• Academic• Business

Academic Summary

• Joint effort

• Multidisciplinary Business Engineering Agricultural Sciences

• Both faculty and students are involved

What is Penn State’s Primary Academic Function?

Provides a prestigious education to attendees

Produces undergraduates and graduates fully prepared to excel in their fields

Conduct research for the betterment of society, globally and domestically

Community Involvement

Sustainability Initiative: The SCC

SCC = Sustainable Communities Collaborative

Combined Effort (synergistic approach)Faculty, Staff, and Students from multiple disciplines

Community Entities:

Local governments, campuses, businesses, and organizations within Pennsylvania

Projects are presented and evaluated for viability

SCC Continued

Some projects include:

Studying residents’ buying decision process for green energy

technologies (Psychology)

Evaluation of borough residents’ knowledge of

composting program (Agricultural Sciences)

Development of a “closed loop” zero-

waste disposal system (Supply

Chain)

SCC Continued

70% of the borough is currently engaged in sustainable energy practices

Initiatives improve natural environment and entice potential residents to live in State College

This sustains the community’s population and overall conscientiousness of sustainable practices

“purchasing energy, installing rain gardens, recycling food waste, and restoring

wetlands”

Engineering

Department has conducted research

over course of 10 yearsRegards environmental sustainability of industrial manufacturing and residential housing

Collaboration with MIT faculty to produce sustainable solutions for cast iron foundries

Goal of minimization of energy consumption, pollution, and materials use

Smeal College of Business

Highly involved in sustainability efforts

Smeal Sustainability Council Five Year Action Plan Development of sustainability

practices and concepts through research

Sustainability applies to many

business disciplines

APEX Capstone Project Real world sustainability

challenges for MBA students

Penn State Net Impact (PSNI) Educates students about

importance of CSR and sustainability

Smeal Continued

Smeal Outreach:• 2011 Advanced Manufacturing Forum

• The R. Hadley Waters Supply• Chain Symposium:• Centralized on supply chain initiatives to reduce carbon footprints and maintain profits

Smeal Green Team:• Promotes environmentally sustainable business practices• Externally: generates awareness of financial importance of environmental sustainability

• Internally: identifies cost effective green opportunities for Penn State

Agricultural Sciences

Promotion of sustainable food and agriculture systems

Penn State Sustainable Ag Working Group (PSU-SAWG)

• Collaborates with farmers/ government and non-government entities

• Integrated sustainable agriculture systems

Environment Economy Society

LEED Certification

LEED is the official standard for sustainable architecture

Penn State currently has 15 LEED certified buildings

Stuckeman Family Building Gold ranking Exterior is recycled copper and brick

• Rainwater recycling system on roof for irrigation• Storm water management for flood prevention

Advanced green technology in interior• Natural ventilation systems• Automated lighting

Business Summary

Cost minimization through ecofriendly practices

Penn State maintains its

operations while still saving money

Use of adaptive

methodologies

Recycling

Recycling and Waste Management

Diverts 65% of solid waste from landfills

• Saves on disposal costs

Mobius initiative• Improve campus composting

to increase waste diversion to 75%

• Eventually 85% with miscellaneous plasticsRecycles 200

tons of plastic annually

Reduction of Waste

Penn State Food Services• Reduction of plate sizes• Local vendor purchasing• Donation of leftover food • Training students and staff on

sustainable practices

Penn State PurchasingMaximization of purchasing value

Hydration stations

Air dryers replacing paper towels

Team Six Conclusion:

Bank of America has a very sustainable corporate environment and conducts multiple operations in synergy with Corporate Social Responsibility

Penn State strives to educate its students in the areas of sustainability and is continuing to expand in this field.

Penn State also strives to stay sustainable as an economic entity through its business operations, including recycling, reducing, and better managing.

Works Cited

"Bank of America." Bank of America Corporate Social Responsibility 2013 Report. N.p., n.d. Web. 4 Aug. 2014. <http://about.bankofamerica.com/assets/pdf/Bank-of-America-2013-

Corporate-Social-Responsibility-Report.pdf>. "Bank of America." Bank of America Shows Progress in Six Key Areas. TriplePundit, n.d. Web. 4 Aug. 2014. <http://www.triplepundit.com/2012/08/bank-america-2011-csr-report/>. Carroll, Richard. "Santa Monica." howstuffworks. N.p., n.d. Web. 10 Aug. 2014.

<http://adventure.howstuffworks.com/los-angeles-city-guide.htm>.  "INTERVIEW: Serge Appel Talks to Inhabitat About One Bryant Park Read more: INTERVIEW: Serge

Appel Talks to Inhabitat About One Bryant Park | Inhabitat - Sustainable Design Innovation, Eco Architecture, Green Building." Inhabitat. j, n.d. Web. 4 Aug. 2014. <http://inhabitat.com/serge-appel-on-one-bryant-park/>.

 "Phoenix Solar, Silicon Ranch Corp. to build 38.6 MW Georgia solar plant." Discover What CMI Can Do for You! PennWell, n.d. Web. 5 Aug. 2014. <http://www.power-eng.com/articles/

2013/07/phoenix-solar-silicon-ranch-corp-to-build-386-mw-georgia-solar-plant.html>. "Sustainability." Building Owners and Managers Association International. N.p., n.d. Web. 4 Aug. 2014. <http://www.boma.org/sustainability/Pages/default.aspx>.  "Sustainability." City of Burnsville. N.p., n.d. Web. 5 Aug. 2014. <http://www.ci.burnsville.mn.us/

index.aspx?NID=842>. "Sustainability." Sustainability Campaign. Adam Winnik, n.d. Web. 10 Aug. 2014. <http://

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