Sustainable business

why would companies implement sustainability into their organization

-reduction of energy, waste, and material used. -differentiation of product or company from others. Increase customer awareness with focus on sustainability. -innovation to create new products and serve new markets. -improvement of company image and reputation with customers. -enhancement of investor interests.

3 scopes of carbon footprint

1. Direct emissions from an organization's operations ex. Emissions from fuels consumed for company vehicles and equipment and emissions from fuel consumed on-site to manufacture products or generate heat 2. Indirect emissions from energy purchased by the organization ex. Emissions from fuels burned by power plants that provide electricity to company facilities 3. Indirect emissions from sources not owned by the organization ex. emissions associated with the use and disposal of an organizations products

main types of sustainable performance indicators

1. Economic performance indicator- Company turnover, profit, quantity of products sold, and market share 2. Social performance indicator- Labor practices, human rights, diversity, philanthropy, wages, and benefits 3. Ecological performance indicator- GHG emissions, water usage, resource depletion, waste generated, pollutants released, biodiversity, and land use SPIs can be used to calculate a sustainable return on investment (SROI). SROI determines the full value of a project by assigning monetary values to environmental and social indicators. This allows for the calculation of full costs and benefits of a project to be evaluated and may result in approving projects that would fail traditional financial tests or in not moving forward with projects even though their traditional financial measures would support the project.

timberlands four pillars of growth

1. product: ex. LWG silver and gold rated tanneries 2.climate: planting trees 3.service: community sevice 4.factories: try to use 50% renewable energy

4 goals of sustainability (adam Werbach)

1. protect the environment 2. care about cultures 3. social responsibilities 4. economic sustainability

what is corporate social responsibility

A business model where societal impact is considered in business decision making. It shifts the focus from only considering the financial impact on the company when making decisions to including societal and environmental impacts. CSR covers the responsibilities corporations have to a broad set of stakeholders, including the communities within which they are based and operate.

carbon footprint

A carbon footprint measures all greenhouse gas (GHG) emissions associated with the life cycle of a product, service, or business operation, including carbon dioxide, methane, and nitrous oxide.

What are external costs?

A cost imposted upon a third party when goods and services are produced or consumed.

What are sustainable performance indicators?

A key performance indicator for sustainability. SPIs are used as a tool to measure a company's sustainability performance and to monitor and report on future progress. SPIs can be further categorized into the three areas covering either the economic, ecological, or social aspects of sustainability.

main takeaway and a-ha moments for Method

A-ha moment: Use higher quality, sustainable, non toxic ingredients in soap. -attractive packaging. They were successful because from the start, they assumed that incorporating ecological and human health concerns into corporate strategy was simply good business -- differentiation -TEN concept -plant base polymers

examples of greenwashing

An example is FIJI Water, claiming "every drop is green". Can't be green because they are shipping water thousands of miles, which has significant external costs in emissions.

provide an example of triple bottom line

An example is Green Mountain Coffee Roasters. GMCR implemented a fair trade procurement model that improved the quality of life for the farmers in the coffee bean supply chain and their families (People). At the same time, fair trade helped GMCR monitor quality and lower costs (profit). Not only this, but GMCR helped farmers by training them in water-smart agricultural practices and restored watersheds and water systems (planet).

examples of upcycling

An example of upcycling is when teracycle provided Walmart with used margarine containers to be used as flower pot containers. Another example of upcycling is terracycles offices, which is made entirely from upcycled waste.

Describe climate change and its root cause

Climate Change is changes in climate outside of historical norms. Right now we are facing climate change due to humans. The releasing of greenhouse gases has globally increased the temperature of Earth.

'triple bottom line'

Considers business from economic, environmental, and social perspectives and measures business performance based on net impact on profit, people, and planet.

What are 'stakeholders' that would be affected by a company's actions?

Consumers, employees, investors, communities near processing plants. An example is FIJI Water creating schools in neighboring villages, and providing clean water for these people. The flip side is that they are draining the aquafer underneath the village. Another example would be if a company decided to use sustainable business practices as a marketing tactic, this may increase the companies' values to investors.

How do you calculate the gross profit for wholesale and direct-to-consumer?

Direct to consumer Retail price- cost of good=profit margin Profit margin/retail price=gross margin Wholesale Wholesale price- cost of good=profit margin Profit margin/wholesale price=gross margin

radical transparency in sustainability reporting? Why is it important?

Ensuring everything a company does is completely transparent and visible to the consumer and stakeholders. It is a voluntary transparency that attempts to show the good the bad and the ugly. It shows a more honest and more public view of the company. The belief is that customers and other stakeholders will want to engage and support organizations that are built on full disclosure.

social entrepreneur

Entrepreneurship focused on bringing value to society. Individuals who act as an agent of change for the society. They take innovative approaches to existing systems to develop sustainable solutions for the purpose of changing society for the better. ex. kiva-connects people through lending money to alleviate poverty

examples of external cost

Examples include pollution, impacts on health, water waste, noise. An example we discussed in class was the emissions from producing goods and transporting goods.

What are the external factors that can motivate a company to become more sustainable?

Governmental laws and regulation and consumer and investor interests and expectations. The external factors are strongly influenced by societal trends and values, demographics, and new knowledge.

why is ten principle important

It is important for companies to use the TEN principle because they are trying to market themselves as an environmentally friendly, sustainable business. This is their unique selling point that is used to show why they are special. Also by using the TEN principle, the company is trying to establish a good relationship with its consumer by gaining their trust and presenting itself as genuine.

What is the base of the pyramid? What market is it addressing? How does it pertain to creating sustainable business ideas? Give examples

Makes up 4 billion people, who are in developing countries. It is addressing developing/not yet developed markets. The driver is poverty, and is business model focused. An example is d.light. It is a clean tech, whose primary consumers are people in developing countries who need a reliable, cheap, and safe light source.

what is greenwashing

Marketing green instead of actually being green. The practice of making an unsubstantiated or misleading claim about the environmental benefits of a product, service, or technology.

What is the difference between recycling and upcycling?

Recycling changes the physical properties of the recycled good. Upcycling does not change the physical properties.

main takeaway and a-ha moments for d.light

Saw a market niche in India for a cheap light that was clean and renewable

5 types of renewable energy

Solar energy- electricity and thermal energy from the sun Wind energy-generating electricity Biomass- energy generated from the combustion of biological sources Geothermal energy- Hydroelectric-

sustainable entrepreneur

The act of starting a new business or changing an existing business with a specific focus on a new product or service that contributes toward increasing sustainability. ex. stonyfield

why are carbon footprint and water footprint important

These measurements are important because they are giving an estimate to how much they are effecting the earth, and how they can properly manage these resources. By pinpointing where the biggest use comes from, it allows for companies to look for strategies to become more efficient.

What's the number one internal factor that motivates companies to become more sustainable?

To maximize profit.

what is biodiversity and why is it important

Variation of life within an ecosystem. Most of worlds need are derived from biological resources. Goods and services provided by biodiversity. Food, fuel and fiber. Purification of water. Pollination of plants. Detoxication and decomposition of plants. Control of pests and diseases. Cultural and aesthetic benefits.

Define sustainability

Way to meet the needs of current generation while not sacrificing the needs of future generation.

no limit to growth

a major factor in "limits to growth" thinking—can be effectively addressed by economic laws of supply and demand. Laws of supply and demand do work; as resources become scarce, the market will reduce use by increasing the price of those resources.

water footprint

an indicator of water use that looks at both direct and indirect water use.

what are five threats to our ecosystems

climate change, pollution, habitat destruction, overexploitation, and introduction of invasive species.

two views of economics

limits to growth no limits to growth

how was honest tea funded

personal funding of about 300k, then about another 200k from family and friends, then consumer investors that added up to 1.2 million, then angel investors -pros of angel investors: $$, truly invested in the mission of the company. -cons: hand holding, and takes a lot of time.

two levels of sustainability

strategies for greening -focus on existing markets -products, processes, customers, shareholders ex. honest tea strategies for beyond greening -focus on emerging market -tech -markets -needs ex. d.light

how was terracycle funded

they started with 20k from personal funds to fund the purchase of the "worm gin", then got a 2k investment from someone who heard about them on the radio and 6k from a friend's parent. Their small stating sum that came mostly from them forced them to think creatively about cheap ways to run their business, which then led to the idea of using old bottles to package their product

TEN principles

transparency: your making an effort engagement: mission to your company known by employees network: what ur company do. how you show it

limits to growth

unlimited economic growth is not possible. A view of the interaction of human economic systems with global natural resources that under a business-as-usual scenario, the human population will outstrip the ability of Earth to sustain it.

main takeaway and a-ha moments for Honest Tea

unmet need for a mildly sweet tea. Also funding choices. Angel investors, venture capitalists. Types of investors early on/Impact on mission statements

main takeaway and a-ha moments for Terracycle

upcycling waste as an asset instead of just trash A-ha moment: seeing experimental worm compost system at a friend's house