Transcript Slide 1

Sustainable Tourism
An Integrated Values-Based
Business Model
National Academy Foundation Annual Institute
for Staff Development
July 10, 2009
Ed Fox
Vice President and Chief Sustainability Officer
SUSTAINABILITY
The Icarus Foundation
http://www.theicarusfoundation.com/Home.html
Center for Sustainable Destinations –
National Geographic
http://www.nationalgeographic.com/travel/sustainable/
Globalization101.org A Project of the Carnegie Endowment
http://www.globalization101.org/index.php?file=pnews&id=137
The Sustainable Tourism Gateway
What Is Sustainability?
Why Does It Matter?
Development that meets the needs of the present
without compromising the ability of future
generations to meet their own needs.
- Brundtland Commission 1987
BUT
The social responsibility of business is to increase its
profits.
- Milton Freeman
1970
Sustainability is a systems approach to
planning and decision making that creates
long-term value by embracing opportunities
and managing risks derived from economic,
environmental and social developments.
- WBCSD
Triple Bottom Line
Environment
Economy
Equity /
Community
 Principled Business Performance
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Based upon trends:
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Risk management
Optimize opportunity
Context for Sustainability
 South Africa – Apartheid Economic Boycott
 Union Carbide – Bhopal
 Exxon – Valdez
 Nike – “Sweatshops”
 Monsanto – Genetically modified foods
 Ford/Bridgestone tire “Explorer” recall
 Enron
 WorldCom
Environmental Context for Sustainability
 50% of forests lost
 Accelerating bio-diversity losses
 Global warming
 Ocean fisheries
in decline
 Dispersing 80,000
synthetic chemicals
into land, air and water
SRI Markets
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Over $2 Trillion invested in Socially Responsible
Investment (SRI) Funds
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Pension fund laws – eight European countries
require consideration of environmental
and social issues
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Demographics – Baby Boomers interested in SRI
Implementing
Sustainability
Getting There
Sustainable
Business
Practices
Today’s
Business
Practices
Focused on a
“win” for
business
Quick
Wins
Sustainable Value Partners, LLC © 2007
Innovation
Projects
System
Change
Engaging through Networks
with partners of all types
A “bigger win”
for business and
a “win” for
society
A Deliberate Process
Business Strategy
Priorities and Goals
Business Sustainability Lens
Take a full life cycle view
Engage full range of stakeholders
Focus on innovation (not compliance)
Find win/win solutions (business & society)
Signs of Success
You’re asking questions you’ve never asked before
You’re learning from people you never talked to before
You’re finding ways to create value you never saw before
APS Strategic Framework
What We Track, Measure and Report
Environmental Performance
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Economic Performance
Strategy
Management Systems
Reporting
Training
Climate Change/Emissions
Renewables
Biodiversity
Waste
Social Performance
 Local Communities
 Workplace Practices
 Labor Relations
 Human Development
 Health and Safety
 Supply Chain
 Product Safety
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Corporate Governance
Risk/Crisis Management
Codes of Conduct/Ethics
Customer Relationships
Market Opportunities
CSR Reporting
2009 - 2013 Corporate Measures
Economic
Environmental
Equity / Community
Employees
Level 1
Level 2
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Annual Capacity Factor
Dividend yield + EPS growth
Equivalent Availability Factor
Nuclear Performance Index
Non-fuel O&M ¢ per kWh
Rating Agency Bond Valuation
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CO2 Intensity
Transportation CO2
Facilities CO2
Facilities Water
Generation Water
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Customer satisfaction
survey results
OSHA Recordable Injuries
Overall reliability measure
Customer Program Impact
Employee Engagement
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Audit
Committee
Board
Finance, Nuclear
and Operating
Committee
President &
COO
VP & CSO
All Officer
Sustainability
Policy Group
Sustainability
Working Group
EETI
EHS
S & HAT
EAT
Internal Sustainability Initiatives
 Sustainability Working Group
 Benchmarking
 Baseline
 Key Metrics
 GHG emissions per MWh
 Water use (gal/MWh and type)
 Low-Hanging Fruit
 Turn off PC monitors ≈ $450k savings annually
 Increase fleet fuel efficiency by 25% - $640k savings annually
Sustainability – Benefits
 Reputation Management
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Access to Capital
Employee Recruitment
Technology Partnerships
Credibility
 Eco-Efficiency
 Saves $
 Reduces Risk
 Employee Engagement
Customer Sustainability Initiatives
 DSM Programs
 CFLs
 Air Conditioner Rebates
 Business/Commercial Energy Efficiency Incentives
 Energy Star Homes
 Renewable Energy Programs
 Solar Electric Incentives
 Solar Water Heater Incentives
 Green Choice
 Total Solar
The Right Path
Sustainable
Tourism
Community
Involvement
EcoTourism
EcoEfficiency
Sustainable
Tourism
$$$$$
Local
First
Cultural
Tourism
Partnership for Global Sustainability
Tourism Criteria
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The Partnership was initiated by the Rainforest
Alliance, the United Nations Environment Programme
(UNEP), the United Nations Foundation, and the United
Nations World Tourism Organization (UNWTO).
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Criteria designed to establish a common understanding
and accounting for the tourism and hotel industries
regarding:
 Effective sustainability planning
 Social and economic benefits to local community
 Enhancing local cultural heritage
 Reducing negative impacts on the environment
- SustainableTourismCriteria.org
AZ Dept of Tourism
 Sustainable Tourism Council
 Defines Sustainable Tourism as:
“Sustaining the culture, heritage and environment
of a region while at the same time promoting
economic growth and social wellbeing through
tourism”
A Better Tomorrow Starts Today
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Transportation
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Lodging
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Fuel efficient vehicles/hybrids
Local walking and bicycle tours
Carbon offsets
Conservation: energy, water, recycled products; non toxic cleaning
products (supply chain)
People/Places
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Buy and promote local
Offer excursions of indigenous peoples
Patronize local restaurants
Offer eco philanthropy opportunities with local NGO’s
The Value Proposition
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Saving costs through improved efficiencies
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Increases revenues – market share
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Reduced risk
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Brand value and reputation
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Developing human and intellectual capital
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Improving governance
“Our future is a shared one with our customers,
shareholders, employees and the communities in which
we live and do business.”
- PNW Corporate Responsibility Report