Global and Industry Comparison

ENBUS 601

August 26, 2016

Presenters: Oussama Benkabbour | Savita Benkabbour | Manpreet Dhillon | Josephine Pham

Top Drivers for Sustainability

Objective

• Compare business drivers for sustainable development (SD) across three industry leaders.

2

• Beyond Reputation

• Global Drivers

• Industry Leaderso Apple Inc.

o Exxon Mobil

o Nestlé

• Industry Comparison

• Insights & Recommendations

• Q&A

3

Agenda

Beyond Reputation

4

0

20

40

60

80

100

% Embedded % Not embedded

Why have companies embedded sustainability practices?%

Source: McKinsey, 2011

Global Drivers: Why Sustainabi l i ty?

5

Human Rights

Access to Markets/

New Build

Customer Attraction

& Retention

Media/NGO

Pressures

Continuous

Improvement

Increase

“Eco” –Efficiencies

Due Diligence

Protection/Assurance

Source: Ethical Corporation, 2015

Apple Inc. – Think Different

• Multinational technology company

• Revenue: $233.7B USD (2015)

• Market Cap: $700B USD (2015)

• Employees: 110,000 (2015)

• Strategy: Hardware, Software and Services

• Products: iPhone, iPad, Mac, iOS, iCloud, Apple TV, Apple Watch

6

Apple – Priori t ies and Issues

7

• Climate Change: Use of renewable energy sources and energy efficiency in products and facilities.

• Waste: Conserve precious resources

• Safety: Use of safer materials in products and processes.

• Supply Chain: Create fair employment and safe working conditions throughout supply chain

Exxon Mobi l – Taking on the wor ld ’s toughest energy chal lenges

• Global energy company

• Segments: Upstream, Downstream and Chemicals

• Revenue: $259.5B (2015)

• Market Cap: $356.5B (2015)

• Employees: 73,500 (2015)

• Subsidiaries: Esso, Imperial Oil, Superior Oil, Syncrude, Mobil 1

8

Exxon Mobil – Priori t ies and Issues

• 39 identified materiality metrics

• Key Risks• Political: Protectionism of markets

• Economical: weak global economies – low oil prices

• Social: Rising public concerns about the safety of their products

• Technological: Increased innovation of alternative energy sources

• Environmental: Seasonal weather patterns, climate change and greenhouse gas restrictions

9

• World’s largest food company

• Revenue: $92.1B USD (2015)

• Market Cap: $232.4 B USD (2015)

• Employees: 335,000 (2015)

• Strategy: Nutrition, Health and Wellness

• +2,000 Brands

Sales Contribution (2015)

10

Nestlé – Good Food, Good Life

Nestlé – Priori t ies and Issues

11

Five major issues relating to Nutrition,

Water, Regulation, and Environment

Industry Comparison

12

Due Diligence

Protection/Assurance

Access to Markets/

New Build

Customer Attraction

& Retention

Increase “Eco”–Efficiencies

Human Rights

Media/NGO Pressures

Product Innovation

13

INSIGHTS 1. Focus on Mitigation

Initiatives

2. Information Availability

and Transparency

3. Public Perception

towards SD

4. Differentiation vs.

Competition

RECOMMENDATIONS1. Focus on Adaptation

Initiatives

2. Implement Consistent

Approach for SD Metrics

3. Enhance Communication/

Awareness at POS

4. Translate Impact to Dollars

– sdEffect

Appendix: Global Sustainabi l i ty Trends

15

What should we watch for in 2016-2017?