Transcript sustainability

SUSTAINABILITY
AND B-SCHOOLS:
WHY SHOULD YOU CARE?
U Vic Gustavson Faculty
September 12, 2012
[email protected]
www.sustainabilityadvantage.com
BEYOND GREY PINSTRIPES
Biennial survey and ranking of 149 B-schools
on integration of social and environmental
stewardship into curricula and research
Criteria
Availability of relevant courses (25%)
Student exposure / Course time (25%)
Relevant courses on for-profit impacts (25%)
Faculty research (25%)
Rankings (2011-2012)
1. Stanford (USA)
2. York (Canada)
3. IE Bus School (Spain)
4. Notre Dame (USA) 5. Yale (USA)
6. Northwestern (USA)
7. Michigan (USA)
8. Cornell (USA)
9. UC – Berkeley (USA)
10. GWU (USA)
24. UBC (Canada)
35. U Calgary (Canada)
42. Concordia (Canada)
http://www.beyondgreypinstripes.org/
CORE SUSTAINABILITY CONCEPTS
Intergenerational
responsibility
Systems
thinking
Socio-economic
justice
SOCIETAL SUSTAINABILITY
QUALITY OF LIFE
Environmental
CORPORATE SUSTAINABILITY
TRIPLE BOTTOM LINE
Planet / Environment
CORPORATE SUSTAINABILITY
ESG
Environmental
CORPORATE SUSTAINABILITY
GREEN +CSR
Environmental
CORPORATE SUSTAINABILITY
ASSET MANAGEMENT
Natural Capital
SUSTAINABILITY JOURNEY
5. PURPOSE & PASSION
4. INTEGRATED STRATEGY
3. Beyond Compliance
2. Compliance
1. Pre-Compliance
“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
“Why Sustainability Is
Now the Key Driver
of Innovation”
“Sustainability should be a touchstone for all innovation …
In the future, only companies that make sustainability a
goal will achieve competitive advantage.
That means rethinking business models
as well as products, technologies, and processes.”
Nidumolu, Prahalad, and Rangaswami, HBR Sept.-Oct. 2009
“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
CEO MINDSET IS SHIFTING
Sustainability should be …
fully embedded in
strategies and operations
96%
72%
93%
… acted upon by boards
69%
88%
… embedded in supply chains
2010
50%
2007
UN Global Compact and Accenture study, survey of 766 worldwide CEOs, June 2010
STAKEHOLDERS INFLUENCE CEOs
Consumers
50%
Employees
39%
Governments
32%
45%
39%
29%
Commmunities
28%
26%
Regulators
25%
2010
2007
UN Global Compact and Accenture study, survey of 766 worldwide CEOs, June 2010
58%
CEOs’ SUSTAINABILITY DRIVERS
UN Global Compact and Accenture study, survey of 766 worldwide CEOs, June 2010
STRATEGIES VS. ANOTHER GOAL
Profit
Talent wars
Share price
Productivity
Growth
Innovation
Revenue
Brand image
Market share
Expenses
“SUSTAINABILITY”
Quality
Compliance
Supply security
SUSTAINABILITY STRATEGIES
MORE COMPELLING BUSINESS CASE
9%
25%
+51 to
+81%
PROFIT
-16 to
-36%
2. Reduced energy
75%
3. Reduced waste
20%
4. Reduced materials
10%
5. Increased productivity
6. Reduced turnover
SUSTAINABILITY
CAPITAL RESERVE
Revenue
Risks
7. Reduced revenue and
increased expenses
1. Increased revenue
Income Statement
Expenses
Opportunities
2%
Company Data Profile
Revenue
Energy expense
Materials and water expense
Total salary / payroll expense
Profit
Average salary
Number of employees
Small
Large
Professional Manufacturing &
Services
Distribution
Company
Corporation
$1,000,000
$500,000,000
$20,000
$10,000,000
$50,000
$150,000,000
$300,000
$70,000
$50,000
6
$150,000,000
$35,000,000
$40,000
3,750
Potential profit increase
51%
81%
Potential profit at risk
-16%
-36%
IN SUMMARY …
SUSTAINABILITY IS
$MART BUSINESS
“The possibility that
sustainable enterprises
will flourish forever.”
CLOSE TO “TIPPING POINT?”
5. PURPOSE & PASSION
4. INTEGRATED STRATEGY
3. Beyond Compliance
2. Compliance
1. Pre-Compliance
SURVEY SAYS …
Based on survey of 1,251 companies, in UN Global Compact Annual Review 2010
SUSTAINABILITY AT TIPPING POINT?
• 70% say that sustainability was
on the management agenda in
2011, and will stay there
permanently.
• 67% said that sustainabilityrelated strategies are
necessary to stay competitive.
• 24% are “Embracers”
… the Tipping Point?
MIT Sloan and the Boston Consulting, “2011 Sustainability & Innovation Global Executive Study
and Research Project,” Jan. 2012. Surveyed 4,000 managers from 113 countries.
“EMBRACERS”
MIT Sloan and the Boston Consulting Group,survey of 3,000 worldwide executives in
2010, “Sustainability: The ‘Embracers’ Seize Advantage,” Feb. 2011
SUSTAINABILITY
AND B-SCHOOLS:
WHY SHOULD YOU CARE?
U Vic Gustavson Faculty
September 12, 2012
[email protected]
www.sustainabilityadvantage.com