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Learn more about the obstacles that prevent companies from achieving their sustainability goals.
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www.thinkpaydirt.com
From Barriers to Building Blocks: Overcoming Obstacles to
Sustainability
Environmental Impact
Sustainability Business Drivers
© 2010 Paydirt, LLC 2
Cost and Efficiencies
Risk Management
Supply Chain Pressure
Government Action
Competitive Advantage
Talent
Current AttitudesThe Business of Sustainability – MIT Sloan Management Review
Overwhelming majority of survey respondents said sustainability-related issues were having or will soon have a material impact on their business
Strong consensus that the underlying drivers of sustainability are highly complex and interrelated
Fewer than 25% decreased commitment to sustainability during downturn
60% are building awareness of their sustainability agenda, but most of these lack an overall plan
3© 2010 Paydirt, LLC
Impeding Decisive Action
The Business of Sustainability – MIT Sloan Management Review
Don’t understand what sustainability is and what it means to their enterprise
Difficulty defining the business case
Execution is flawed
Once companies begin to act aggressively, they unearth more opportunity than expected
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Sustainability Building Blocks
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Corporate Strategy
Internal Organization and Systems
External Stakeholders
Performance Measurement
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Corporate Strategy
Lack of top-level commitment
Failure to create a culture of sustainability
Skepticism – within leadership and/or employee base
Barriers
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Corporate Strategy
Visible top-level involvement
Define sustainability for your organization
Communicate the business case – tangible and intangible benefits
Think beyond the short-term
Incorporate sustainability into decision-making frameworks
Building Blocks
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Internal Organization & Systems
Education and engagement limited to few employees
Don’t know where to start
Lack of alignment with incentive system
Silos limit interdisciplinary collaboration
Barriers
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Internal Organization & Systems
Focused approach - roadmap
Utilize existing frameworks and tools
Incorporate sustainability into product development processes
Cross-functional teams to reimagine how your products are made; how you do business
Management and personal objectives
Social media and on-demand education
Building Blocks
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External Stakeholders
Lack of understanding of external stakeholder concerns and challenges
The “green consumer” doesn’t exist
Lack of action in Copenhagen
Barriers
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External Stakeholders
Sales teams need to understand their customers’ sustainability agendas
Alliances, industry groups
CDP, GRI, etc.
How can your suppliers realize business value from reducing their environmental footprint?
Building Blocks
Performance Measurement
Lack of transparency – little focus on measuring, tracking and reporting results of sustainability-related efforts
Absence of goals or performance targets
Targets set without sound basis
12© 2010 Paydirt, LLC
Barriers
Performance Measurement
Measurement strategies for every initiative
Define KPIs and assess your ability to report on them today
Availability of data in existing systems
System enhancements for data collection and aggregation
Completeness and accuracy – internal controls
Environmental scorecard – phased approach
13© 2010 Paydirt, LLC
Building Blocks
