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Beta Gamma Sigma Kevin Wilhelm Sustainable Business Consulting Tuesday August 30th, 2011 (during the Sounders Open Cup Semis) What I’m going to talk about How I got my start Facts about sustainability in industry Why sustainability is important to companies Who’s making $ by doing the right thing What you can do to help How I got started Okay, how I really started ‘99 – Business School ‘97 – Had my “Dances with Wolves” moment ‘01 – Moved to Michigan, started my own biz ‘04 – Moved to Seattle. War chest: $500 ‘07 – Opened the doors Today: Sustainable Business Consulting Facts about Sustainable Business …and why it’s important to companies, you, and your career ambitions. The State of Sustainability The Government almost defaulted and was downgraded The US is involved in three wars right now Our political system is broken Climate Legislation isn’t just stalled, it is dead The EPA is under attack for enforcing GHGs People are increasingly skeptical of green and climate change regardless of the science Yet, business needs to pay attention because there is big $ at stake “In the middle of difficulty lies opportunity.” Albert Einstein Big $ at stake for Businesses Indisputable Evidence Some Major Effects Extreme weather Destabilization of local climates Glacier retreat and disappearance Sea level and temp rise, acidification Desertification Water scarcity Increased spread of disease Economic implications Regulation is coming! Upcoming Regional and Local Regulation EPA 14,000 largest emitters (> 25,000 MT) in ’11 WA Requiring then 10,000 MT CO2e Higher Fuel Efficiency Standards: 35.5 mpg, up to 54 Renewable Portfolio Standards: 35 states & DC Toxic Waste Limits, REACH ACCORDS FTC rulings on “green” International reporting: UK, Japan, etc U.S. Mayors Climate Protection Agreement As of August 2011, 1054 cities signed the “US Mayor’s Climate Protection Agreement.” Why is Sustainability Important in your Industry? Energy Prices Leadership/ Recognition Business Travel New Carbon Markets Waste Public Policy/ Regulations Supply Chain Sustainability Tax Incentives Fuel Prices Cost Savings Investor Pressure Paper Reduction Insurance What’s Happening in the Marketplace Fuel Prices: on everything, from air travel to lettuce Supply Chain: Wal-Mart, Target, HP, Microsoft, SAC Equity Investors: ESG, SRI, SEC Guidelines Carbon Disclosure Project: $64 Trillion in Assets Insurance: E&O Insurance Debt: Equator Principles FTC: Rulings on “green” Other: Genesis Covenant, Pope’s comment, Sports Business Alliance Our Philosophy and Clients Language and buy-in ROI & NPV Environmental, Social, Climate External & Internal Implementation The old way of doing business Have FUN while doing the work that needs doing! Examples of Companies Making $ while making a difference DuPont: Energy Efficiency Optimized energy and distribution at its facilities added new technologies with lower energy consumption improved yields from manufacturing processes. Financial • Saved more than $3 billion & expanded their businesses by 30% • Total savings from the landfill gas projects exceed $8 mill/year. Brand • Use to be the #1 Polluter, now seen as innovator Sustainability • Reduced GHG emissions to 72% below 1990 levels. • Removed CO2 emissions equivalent to almost 78,000 vehicles or more than 900,000 barrels of oil. Reduced its CO2 emissions 72% below Kyoto target and saved $3 Billion! Reconfigured the plastic bottles for its Suave shampoo. Financial Brand Sustainability • Saved more than $2 million in diesel costs alone • Met the stricter packaging requirements of customers such as Wal-Mart • Saved plastic equivalent to some 15 million bottles a year Changed production from curly noodles to straight noodles and then redesigned packaging to shave 20% off the size of its packaging. Financial Brand • Reduced the cost of raw materials packaging by 10%. • Demonstrated to customers a simple, easy solution to reduce GHG emissions without any impact on consumer behavior Sustainability • Fuel savings equated to 500 fewer distribution trucks on the road each year From Waste to Revenue Use excess foam from Therm-aRest ProLite models as raw materials for camp pillows which “sell like crazy”. Financial Brand Sustainability • Turned costs into a revenue stream on their income statement • Met customer demand for complementary product to Therm-aRest. • Developed additional purchase point to drive Therm-a-Rest sales • Turned hundreds of pounds of waste foam destined for landfills, which wouldn’t biodegrade for decades, into a practical accessory * Bi-Product synergy group recently launched in WA GSB Law: Office Practices Installed six high-speed scanners to scan every correspondence coming in to the office Web based storage allowed to them to convert storage rooms into office space. Saved paper, time (filing, copying, shredding), and opened up floor space on each of its three floors. Net Savings over $1,000,000 Amgen: Employee Productivity and Commuting Began using video conferencing provided showers, lockers, onsite bike tune-ups Zipcars & shuttle every 15 minutes downtown Scott Eklund / P-I Financial • Saving thousands of dollars by reducing staff business travel Brand Sustainability • In 2006, named a • best workplace for commuters • by a coalition of the EPA, local non-profits and transit organizations • 75% of Amgen’s workforce no longer drives to work alone – huge reduction in carbon footprint. How You Can Get Involved Best place to make change is where you are. Join your company’s Green Team. If none exists, start one! This is a good career move. Take the case studies posted and put to action Attend conferences, go to Green Drinks, volunteer Get some additional training: City U, Bellevue College, Bainbridge Graduate Institute Get Involved! What’s Happening in the Industry? Where are the jobs? (by industry) Geographic hot spots (Seattle, Portland, Vancouver, San Francisco, London/EU) Who is doing it and how many are doing it? What are the jobs? (CSR director/manager, sustainability consultant, other) Helpful Resources Local Resources Seattle Climate Partnership (SCP) www.seattle.gov/climate/partnership.htm Business Leaders for Climate Solutions www.climatesolutions.org Bellevue Green Business Challenge –Paul Andersson [email protected] Reporting and GHG Protocols Climate Registry EPA Climate Leaders Carbon Disclosure Project (CDP) GRI General Climate info Climatebiz, Pew Center of Climate Change, UW Climate Impacts Group, Climate Institute, US Global Change Research Program, Safe Climate.net For Taking Action 350.org (McKibben), Climatecrisis.net (Gore) Top 100 sites on Climate Change World Environmental Organization www.world.org/weo/climate What you can do? People ask us: What can your 4 person firm do? LEAD Named a best small business to work for in Seattle, Bronze medal winner from Environmental Business Journal Remember I started out not even knowing the term “sustainability” so you are already ahead of where I was when I started Come talk to me after ! Kevin Wilhelm Sustainable Business Consulting Tuesday August 30th Closing In closing….we have an amazing opportunity ahead of us. And with this comes amazing responsibility. The challenge is huge, but How many of you have read Tom Brokaw’s book “The Greatest Generation.” They were uniformly declared this for the 20th century, because our parents and grandparents were the ones that stood up to Fascism. We can be this century’s greatest generation, the ones who planted a flag in the ground and decided that “we”, “we” were going to be the ones to avert this potential global catastrophe. Not only because this is the right thing to do, but also because as I’ve detailed here tonight because it is an effective way to increase profitability, reduce risk, meet customer and investor expectations, and improve the value of your brand at the same time. This is your opportunity. This is your responsibility. Please join us in making this happen