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The Business of Environmental SustainabilityThe Business of Environmental Sustainability
John AlexanderJohn AlexanderJohn AlexanderJohn AlexanderPresident – Americas
Diversey, Inc.y,
GEMI: The Business of Sustainability
Congratulations on 20 years– Helping shape environmental sustainability– Protecting the environment– Protecting the economic viability of member companies
Founding MembersFounding Members– Duke Power– The DuPont Company
Eastman Kodak Compan– Eastman Kodak Company– Johnson & Johnson– Merck– The Procter & Gamble Company– The Southern Company
Agenda
Sustainability at Diversey
GEMI – Why you are importanty y p
Diversey – A GEMI Case StudyDiversey A GEMI Case Study
Where do we go next?Where do we go next?
Triple Bottom Line
Most definitions focus on protecting the “triple bottom line”
People Planet Profits
Human Impact
Environmental Impact
Financial Impact
Integrated Bottom Line
A more operational, integrated equation
Enhanced Top-line Growth
Reduced Operational
C tTop line Growth Costs
Brand value, customer relationship, talent
i i / i
Energy, water, waste, compliance, health, labor liabilityrecruiting/retention labor. liability
Sustainability:Integrated, owned, embracedIntegrated, owned, embraced
Done well, sustainability is– built into operating systems and measures– “owned” by all leaders– embraced by all employees– both internal and external facing
Critical conceptsCritical concepts– Continuous improvement– Built into reward systems– Reflects corporate humility
Challenge to Industry in 21st Century
Because capital resources (human, financial, social, physical and environmental) are finite, unbridled consumption cannot continue forever
Therefore sustainability is the only path to a viableTherefore, sustainability is the only path to a viable enterprise and sustained competitive advantage
“A sustainable enterprise is dependent on a sustainable environment. Management decisionsenvironment. Management decisions that fail to reflect this put a company at grave, future risk.”Sam Johnson, 1975
Heritage of Sustainability: Leading before we had toLeading before we had to1935 – HF Johnson flew to Brazil for sustainable
sources of carnauba wax1999 – Production plants ISO certified
2004 – Global Responsibility Report1969 – Low VOC floor finish developed
1975 – Removal of CFCs
1976 – “This We Believe” written
2004 Global Responsibility Report
2004 – LEED-EB Certification of HQs
2006 – Removal of APEOs
1980 – First raw material use policy
1989 – AccumixTM pack introduced
1990 – Global Packaing Award: EnviroBoxTM
2007 – Defined Purpose
2008 – Climate Savers acceptance
2009 – Global Water Roundtable
Our PurposeClimate SaversKey Milestones on our Journey
1990 Global Packaing Award: EnviroBox
Removal CFCs
This We Believe
Carnauba
LEED EB
11 02MAR10 DIVERSEY CONFIDENTIAL - DO NOT DISTRIBUTE 11
Heritage of Sustainability LeadershipLeadership Recognition
“Di h d d f“Diversey has set a new standard for addressing climate change. The company is stepping into uncharted territory with an initiative that should serve as a blueprint forinitiative that should serve as a blueprint for the entire industry.”Carter Roberts,
President, CEO WWF
Hunter Lovins,President Natural
“I’ve long admired the work of the Johnson companies after years of knowing Sam Johnson. It is President, Natural
Capital Solutionsencouraging to see Diversey continue Sam’s legacy.”
Business Sustainability Imperative
Internal - We manage OUR business environmental/sustainability footprint– Six wind turbines on Diversey’s global HQ
reduces energy costs, carbon emissions and environmental impact
External – We help our customers meet THEIRcustomers meet THEIR sustainability goals– Diversey helped this
$12 billion dairy processing$12 billion dairy processing plant reduce its water consumption by one-third
Sustainability Commitment
Provides a framework for everything we do to deliver the following
S bl h ll i lStable, challenging employment
Profitable business operations
Healthy, thriving communities
GEMI – Why you are important
GEMI: Improving environmental performance p g pand promoting corporate citizenship
Set Raise the Identify and Develop Setsustainability
standardssustainability
bar for organizations
yvet emerging sustainability
issues
pstrategies
and tools to address
these issues
Diversey: A GEMI Case Study
GEMI helped influence Diversey’s sustainability position and actions– Sustainable Development Planner – SD Planner Tool– Metrics Navigator Tool– Climate Change Toolg– Water Sustainability Tools
2003-2006: Diversey contributed to the development and updating of these toolsupdating of these tools2006 – present: Diversey utilized these tools as we built or own sustainability program to fit our business
Sustainable Development (SD) Planner Tool
Informed our thinking around sustainabilityHelped define sustainabilitySWOT Analysis helped us identify sustainability impactsidentify sustainability impacts and opportunities
Metrics Navigator Tool
Helped us select and implement our targeted metricsAllowed us to remain consistent with our culture
Climate Change Tool
Assisted with the construction of our greenhouse gas baselineHelped develop our greenhouse gas emission reduction programprogram
WWF Climate Savers
Absolute GHG Emissions ReductionCommitment to Industry Leadershipy pThird Party VerificationCommitment (2008)– 8% GHG reduction from 2003 baseline by 2013– Invest $19MM with cumulative return of $34MM
Revised Commitment (2009)( )– 25% GHG reduction from 2003 baseline by 2013– Invest $14MM with cumulative return of $36MM
Water Sustainability Tools
Strategic Module (Connecting the Drops) – helped identify waster vulnerabilities across our global organizationFacility Module (Collecting theFacility Module (Collecting the Drops) – helped identify and reduce our water footprint at the facility levelfacility level
Global Water Roundtable
Develop Water Stewardship Standards– Sustainable use of fresh water
resourcesAuditable with Certification SchemeMulti-Stakeholder ProcessL d b Alli f W tLed by Alliance for Water Stewardship– The Nature Conservancy– World Wildlife Fund– The Pacific Institute
Sustainability - Role of BusinessDeliver social and environmental benefits
Increase market share & profitabilityIncrease market share & profitability
Provide value to customers
Business needs flexibility to manage for their long term sustainability whilefor their long-term sustainability while
improving social and environmental impacts
Sustainability - Role of GovernmentMeasure & report compliance to key benchmarks
Define benchmark targetsDefine benchmark targets
Provide regulatory/incentive structure
Government needs to provide a structure Go e e t eeds to p o de a st uctu ethat encourages business investment
Sustainability - Role of NGO’sContinual improvement of societal outcomes
Improve structures aimed at achieving targetsImprove structures aimed at achieving targets
Influence societal targets
NGO’s need to engage consistently and constructively with government and business toconstructively with government and business to ensure that needs are met quickly and efficiently
Collaboration: Business, Government, NGO’s
Collaboration on the rise
Business, Government, NGO s
– Still the exception rather than the ruleDramatically accelerates paceResulting alignment reduces wasted resourcesResulting alignment reduces wasted resources
How can we energize collaboration for societal benefit?
GEMI & Diversey
Instrumental partnership
The results speaks for themselvesp
You’re not alone on this journeyYou re not alone on this journey
C t l ti !Congratulations!