Action Plan for Sustainability and Environmental Responsibility

1
Action Plan for Sustainability and Environmental
Responsibility

• Presentation to the National Association of
  Wholesaler-Distributors
• by
• George P. Nassos
• October 15, 2008

2
The Need for Sustainability The Environments
Big Three

• Energy Depleting Fossil Fuels
• Water Growing Shortage
• Global Warming 3-5º F., 2050, 60-80, 1990

3
Take Your Choice!

• CERES Principles
• 4 Rs
• Energy Efficiency
• Adopt Sustainable Strategies

4
More Choices!

• Apply Systems Approach Tunneling
• Climate Strategy
• Green Buildings

5
Can Start With Quick Fix Adopt the CERES
Principles

• Protection of the Biosphere
• Sustainable Use of Natural Resources
• Reduction and Disposal of Wastes
• Energy Conservation
• Risk Reduction

6
CERES Principles (contd)

• Safe Products and Services
• Environmental Restoration
• Informing the Public
• Management Commitment
• Audits and Reports

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Four Rs

• Analyze waste streams
• 1 Determine waste value and Reduce
• 2 Identify alternatives and Reuse
• 3 Recycle
• 4 Redesign

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Energy Efficiency

• Eco-efficient vs. Eco-effective
• Initially, Focus on Efficiency
• Then, Focus on Renewable Energy

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Adopt Sustainable Strategies

• The Natural Step

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The 4 Conditions of The Natural Step

• Do not systematically increase concentration of
  substances extracted from the Earths crust
• Do not systematically increase concentrations of
  substances produced by society
• Do not systematically mismanage the ecosphere
• Resources are used fairly and efficiently in
  order to meet basic human needs worldwide

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Adopt Sustainable Strategies

• The Natural Step
• Servicizing

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Servicizing

• Redefine commerce to deliver service and value,
  not material
• Maintain control over product life cycle
• Produce more cost efficient products

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Application of Servicizing Strategy

• Incandescent Light Bulbs
• Interface Commercial Carpeting
• Electrolux Washing Machines
• duPont Ford Auto Assembly Paint Shop

14
Adopt Sustainable Strategies

• The Natural Step
• Servicizing
• Biomimicry

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Learn From Nature Biomimicry

• Solar panels
• Abalone
• Spiders silk
• Bi-valves
• Cows enzyme
• Rhinoceros horn

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Adopt Sustainable Strategies

• The Natural Step
• Servicizing
• Biomimicry
• Base of the Pyramid

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The Global Pyramid
Purchasing Power
Population in Millions
gt15,000
800
Wealthy
Emerging Middle Class
1,500 15,000
1,500
Low-Income Markets (BOP)
lt1,500
4,000
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The Great Leap Downward
Bottom of the Top
Base of the Pyramid
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Driving Innovation from the Base of the Pyramid

• Honda
• LEDs
• Phones
• Nirma
• Galanz

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Adopt Sustainable Strategies

• The Natural Step
• Servicizing
• Biomimicry
• Base of the Pyramid
• BHAG

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Toilet Lid Sink
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Advantages of Vertical Farming

• Year-around crop production
• No weather problems
• All food grown organically
• Eliminates agricultural runoff
• Farming in urban centers
• Reduces fossil fuel use
• Converts black and gray water

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Vertical Farm
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Tunneling

• Diminishing Returns
• Interface
• House Insulation

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Climate Strategy

• Chicago Climate Exchange
• Integrating Carbon Trade

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Integrating Carbon Trade

• Cap-and-Trade Market

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Cap-and-Trade System
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Integrating Carbon Trade

• Cap-and-Trade Market
• Offset Exchange

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Offset Exchange System
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Integrating Carbon Trade

• Cap-and-Trade Market
• Offset Exchange
• Cap-and-Dividend

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Climate Strategy

• Chicago Climate Exchange
• Integrating Carbon Trade
• U. S. Climate Action Partnership

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U.S. Climate Action Partnership

• Companies trying to influence government
• Six principles
• Account for climate change
• Create incentives
• Be environmentally effective
• Create economic opportunity advantage
• Be fair to impacted sectors
• Reward early action

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Green Buildings -- LEED

• USGBC
• LEED Certification
• EB NC CI CS H ND

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Measuring Your Success With GEMI

• What is material
• 1. Understand context
• 2. Assess issues
• 3. Develop key objectives
• What and how to measure
• 4. Define key performance indicators and metrics
• How to assure effectiveness
• 5. Evaluate and communicate metrics
• 6. Evaluate integration and improvement

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Why Do Companies Seek Sustainability?

• Economics
• Image
• Marketing
• Social Consciousness
• Concern for the Environment
• Achieve Competitive Advantage
• Survival

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The Importance of Commitment

• Board Commitment
• Officer Commitment
• Manager Commitment
• Employee Commitment

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What Are Some Companies Doing Or Not Doing

• Acquiring Sustainable Companies
• General Electric
• Panasonic (Matsushita)
• Interface
• USCAP or -- CEED
• Shell
• Terra Choice Study

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Why Sustainability Has Not Made a Breakthrough
There is an important job to be done, and
Everybody expects that Somebody would do
it. Anybody could do it, but Nobody did
it. Somebody gets angry about that because it is
Everybodys job. Everybody thinks that Anybody
should do it, but Nobody realizes that Everybody
would not do it. It ends up that Everybody blames
Somebody when Nobody does what Anybody has to do.
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Thank you for this opportunity!

• George P. Nassos
• george.nassos_at_iit.edu
• 312-906-6543