SUSTAINABILITY STRATEGIES ARE GOOD FOR BUSINESS Sustainability Summit

SUSTAINABILITY STRATEGIES ARE GOOD FOR BUSINESS Sustainability Summit Santiago, Chile July 31, 2013 bobwillard@sympatico. ca

“Capitalism is under siege … The purpose of a business must be redefined around creating shared value (CSV)… How to reinvent capitalism—and unleash a wave of innovation and growth” Michael Porter and Daniel Kramer, HBR, Jan-Feb 2011

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, Natural, Social, Human Bottom lines 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’s 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

“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

“Expect the Unexpected: Building business value in a changing world, ” KPMG, 2012

Profit could increase by at least 51 -81% within 3 -5 yrs Bottom-line business case? “Expect the Unexpected: Building business value in a changing world, ” KPMG, 2012

! ? l a t i p a c o t s s ce c A What if Lenders and Investors start to really care about ESG performance? 51 -81% more Profit “Expect the Unexpected: Building business value in a changing world, ” KPMG, 2012

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. M 2 M 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, ” Green. Biz, Feb. 2013.

SUSTAINABILITY STRATEGIES ARE GOOD FOR BUSINESS Sustainability Summit Santiago, Chile July 31, 2013 bobwillard@sympatico. ca