BA 342 Exam 2 class notes
sustainable development classic definition
"development that meets the needs of the present without compromising the ability of future generations to meet their own needs" •enough resources to have a great life?
2020 diversityinc.com top 24 ranked companies for diversity
1. Marriott international 2. hilton 3. eli and lilly and co 4. ADP 5. accenture
climate contextualized
1. climate framing: •scientific: so many people are studying it from every nation on earth •political: nation states coming together having agreements and treaties; are we partnering or no? •economic: trillions of dollar issue •If I talk to people from the developed world with higher education, people say its a big deal - we should do something about it; billions of people are stressed over just enough resources for tomorrow - •climate is important in developed nations but not in non-developed nations 2. human need for energy: if you look at societies that are very well developed they have access to abundant energy for affordable cost •heating, cooling, power for smartphone •lights up cities •"afraid of the dark" clip 3. climate change and weather •whenever you are talking about weather, it is a localized phenomena •climate change: looking at the planet to try to understand how the climate is going to change •"its extra warm today" not climate change but weather •localized weather has high variability
how do you change the intensity equation?
1. conservation •conservation around buildings 2. innovation •Innovation with energy
mapping global population and world futures - the economist
1. india 2. china 3. Nigeria •fewer people are dying than are being born •more developed countries focus on elderly, emerging countries with deal with people boom •large working age population can boost economy •population is constantly changing •raising population: better medicine, less plagues, less people dying in war •economics and health get better, education gets better, change gets better
managing diversity for the US fortune 1000
1. introduction to diversity 2. diversity starts with history 3. diversity data information and meaning 4. the business case for diversity
sustainable development goals (SDGs): 2015-2030 U.N.
1. no poverty 2. zero hunger 3. good health and well being 4. quality education 5. gender equality 6. clean water and sanitation 7. affordable and clean energy 8. decent work and economic growth 9. industry, innovation, and infrastructure 10. reduced inequalities 11. sustainable cities and communities 12. responsible consumption and production 13. climate action 14. life below water 15. life on land 16. peace and justice strong institutions 17. partnerships for the goals
big 3 sustainability drivers
1. population 2. intensity of resource usage 3. climate change
smeal strategic plan
1. providing extraordinary education 2. highest quality research 3. building our culture of: -Integrity -diversity -service -sustainability
number one greenhouse gasses (GHG)?
1. water vapor (H2O) 2. carbon dioxide (CO2) 3. methane (CH4) 4. nitrous oxide (N2O) 5. ozone (O3) 6. chlorofluorocarbons (CFCs) •anthropogenic: human caused; "anthropogenic warming is real"
diversity and inclusion
a business imperative
2020 football unity
allowed to put a decal for unity on your helmet and jersey
SONY road to zero
circular economy mindset: •product/service planning and design -> •operation -> •raw materials and components procurement -> •logistics -> •take back and recycling -> •innovation •SONY made electric car: connectivity goes with electronic companies expertise
sustainability reporting
driver for sustainability
penn states strategic plan and presidential campaign themes
ensuring a sustainable future
smeal director of sustainability
erik foley
dominant attitude in many US businesses
even if my country does not practice sustainability, I still will
triple bottom line
how we start to define sustainability
read article: emerging middle class
look what happened to Brazil and South Korea and look at what they did in terms of chaining their economy
a covid update
more people are moving back to poverty during covid
when you think about the environment, which statement below reflects your point of view? a. must protect the environment at all costs b. environmental resources are for our use c. businesses and environmental goals don't mix d. most countries have a strong green focus e. business and environment goals together
your opinion
smeal college of business sustainability definition
•"the way companies manage financial, social, and environmental risks and opportunities to ensure resiliency over time" •markets, communities, and businesses that thrive because they are intimately connected to healthy economic, social, and environmental systems
wally triplett and penn state
•1945: first black football player at PSU •ESPN 30 for 30 on wally •1946: have an away game, miami sent a note that they don't want black players coming to game; psu called a meeting for all the football players, one stood up and said "we either all play or no one plays"; sent them a note saying that they want to cancel the game •1948: cotton bowl: get a note from SMU that they don't want black players coming; meeting and players said all or none; they were allowed to play; wally scored the tying touchdown -> we are penn state came from this, but cheer team says that it wasn't a part of it •2015: wally came to psu to meet team and coach franklin; franklin said "those who sacrifice before allow us who come after to thrive"; we play all or none •april 2018: wallus PSU hub birthday celebration
smeal sustainability timeline
•2009 (jan): sustainability council formed (internal body - strategic planning) •2009 (nov): sustainability advisory board first meeting (external corporate advisors) •2010: gerry Susman named 1st director sustainability •2012 (nov): smeal 1st to finalize a college strategic sustainability plan •2014: Terry Harrison director •2016: Erik foley director
sustainability and SAS: what do they do
•4% turnover rate saved $100 mil •social: •environmental:
COP 21 major outcomes:
•5 key elements of the Paris agreement: 1. long term goal: achieve net zero emissions 2. every 5 years countries strengthen climate actions 3. enhanced transparency to ensure commitments are met 4. adaptation is a central pillar to help worlds most vulnerable 5. climate finance to support developing counties •10,000 new climate initiatives -114+ companies use science based targets to set emissions cutting goals -400+ cities to set targets that cut their urban emissions in half -187 countries shared national climate action plans -127+ million hectares of degraded land in Africa and Latin America to be restored -$1T in solar investments to be mobilized by now global alliance -20 countries to double clean energy R&D •need to be in for 3 years before you can get out
Fortune 500 women
•5.2% CEO •11% top earners •21% board sears •26.5% senior level managers •36.9% first/mid level managers •44.7% total employees
#1 diversityinc hall of fame companies
•AT&T •Johnson and Johnson •EY •kaiser permanente •novartis •sodexo •pwc
2020 most powerful women in business
•Accenture: julie sweet •general motors: mary barra •fidelity: abby johnson •anthem: gail boudreaux •home depot: carol tome •number of female CEOs in the fortune 500 has risen
2017 MIT sloan management review & the boston consulting group
•CEO focus on sustainability as important to business: -2010: 22% -2017: 75%
sustainability standards for corporations
•GRI (global reporting initiatives): helps orgs take responsibility for their impacts; common language to report -> frameworks of understanding how to report; tells all the things you should be reporting •CDP (carbon disclosure project): driving sustainable economies •DJSI (dow jones sustainability indices): invest in sustainability focused companies; gets people to report what they are doing in environmental and social impacts •ISO •SASB (sustainability accounting standards board): investors can look at what accountants do to make better investment decisions; accepted accounting practices in: financially material, market informed, and industry specific; evidence based; decision useful information in the capital markets
smeal corporate sustainability advisors
•IBM •Interface •pepsico •hershey •perdue •du pont •J&J •Walmart
does diversity pay?
•McKinsey why diversity matters 2015: -gender diverse: 15% more likely to outperform in the market place -ethnic diverse: 35% more likely to outperform in the market place •diversity top 50 stock indexes: 2017 study top 50 best S&P by: -3 year return: diversity top 50 27.87%; DJIA 25.08% -5 year return: diversity top 50 79.61%; DJIA 57.41% •people found that diversity makes them more profitable and good
renewable energy tax credits
•PTC: production tax credit •ITC: investment tax credit
a climate case study
•Penn State University •how Psu is cutting greenhouse emissions in half and saving money: energy efficient windows and doors, putting in insulation, green new buildings, swapped out west campus plant from cold to natural gas •switched to renewable sources of energy •created 9 mil square feet of space •environmental stewardship is a major priority since 2005 •project efforts need to break even or better so they don't have to increase tuition •"a commitment to sustainability and the stewardship of our planet's resources is a key priority at Penn State, as cited in our strategic plan. our recent offsite solar power purchase agreement is one example of our aggressive efforts to reduce our greenhouse emissions by 35% by 2020 and 85% by 2050. we continue to look to add renewable energy options and identify ways to reduce waste in the future." •solar array demo in 2018 •psu utility scale project #2 solar 2019 start: Franklin county 70 mega watts solar, 150,000 panels (25% Psu energy), and 57,000 tons of CO2 reduction
PSU climate scientists
•Richard alley: going to Antartica and digging into the ice •Michael mann: looked at tree rings; heavily quoted scientist
sustainability: a practical example
•SKF: makes bearings; used for anything that needs to go around, go around more smoothly •top company for sustainability •new building was lead platinum certified •building included geothermal heating/cooling: taking advantage of heating and cooling from the earth; as you drill down it gets warmer •innovation: geothermal •intensity: feel comfortable not using a traditional resource heating b/c geothermal has half the cost, half the energy usage, and half of the carbon; light bulbs are all LED; intensity has dropped tremendously •industrial policy: renewable energy tax credit; incentives; more efficiency in buildings •who paid for SKF's geothermal system? -> SKF, fed gov, state gov, and millennials
lighting comparison
•STD: -actual wattage: 60 -cost/bulb: $1.50 each or $45 for 30 -life span (3 hrs/day): 1 year •CFL: -actual wattage: 13-15 -cost/bulb: $2.50 each or $75 for 30 -life span (3 hrs/day): 8 year •LED: -actual wattage: 6-8 -cost/bulb: $2.50 each or $75 for 30 -life span (3 hrs/day): 20 year •2007 energy independence & security act (EISA): lightbulbs must meet a certain standard for energy efficiency
sustainability drivers and climate change
•a lot more information on climate change - a lot more people are thinking about it now
stewardship model
•a stronger point of view •"the responsible management of resources" •responsibility: can you do the right thing •to have basic resources to live we need resources from the environment - do it in a sustainable way
LEED certification
•aka leadership in energy and environmental design •from the US green building council; transforms buildings to be more sustainable; less energy, less water, avoiding waste •why LEED? benefits -> gain a competitive edge, attract tenants, manage performance, cost effective, health benefits, environmental benefits •certificate that proves you are more sustainable •diverts waste from landfills while conserving water and energy •ex: one world trade center - LEED gold rated; 1st college stadium - PSU baseball stadium LEED certified; LEED-EB at smeal gold level dec 2015; Mercedes benz stadium in atlanta is LEED platinum (highest level) LED lighting, LED video boards, solar power etc; enough renewable energy to power 10 games - sports could be leading the sustainability future
world resources institute climate and business
•amazon 2019 climate pledge •competing globally keeps companies engaged
the American business act on climate
•as soon as a nation agrees with other nations that they will change, it will immediately fall on businesses: will they be engaged? •through regulations, incentives, taxes etc
male/female higher education degrees awarded
•associates degree: 62% women; women passed men in 1977 •bachelors degree: 57% women; women passed men in 1981 •masters degree: 60% women; women passed men in 1986 •doctorates degree: 52% women; women passed men in 2005
sustainability and facilities
•big issue when we talk about better use of resources around buildings •global movement to understand facilities
BBC news of boys and girls early age
•boys are less engaged in formal education like speech •gender gap cuts across social classes; boys that are behind never catch up
diversity and women: 30% club initiative
•change the leadership equation -showing women what they can do •create a dynamic to train senior managers how to mentor, help women in ways that are more supportive of women and men •can we do initiatives that would see 30% of the board of directors in fortune 500 companies as women? -what do we need to do structurally? •programs to help women take leadership roles •change the mentality of existing board leadership •boards make better decisions with equality
corporate sustainability: jim gowen Verizon CSO 2019
•chief sustainability officer •Verizon launches "green bond": mechanism to fund sustainability journey; started with recycling and outside clean energy then doing vehicles that are electric, and now billion dollar green bond •response was fantastic •what does it change for consumer: focus on renewable energy, smart building technology and infrastructure, and its about how we bring 5g to customers •sustainability lense to technology
country with highest total use of resources
•china •1.4 billion people, rapidly developing •basket of goods for a developed country is much higher
sustainability - think: linear vs. circular economy
•circular economy: make us return •circular business model: raw materials -> design -> production remanufacturing -> distribution -> consumption (use, reuse, repair) -> collection -> recycling OR -> waste •cradle to cradle design: design product with sustainability in mind - know where it ends up after - raw materials will be repurchased to make new products; mimic nature; great business thing to do •production process: where can I be more efficient? •distribution: high efficiency truck •9/10 companies usually engaged in this
2016 penn state diversity video
•commitment to diversity and inclusion •lit up "all in" on old main •develop a divine discontent •UNITY
world economic forum 2019: companies with more diverse leadership teams report higher innovation revenue
•companies with below average diversity scores: 26% average innovation revenue reported by companies •companies with above average diversity scores: 45% average innovation revenue reported by companies
what the IPCC does
•compile data and create reports: 6th assessment report 2022 •organize conferences: nov 2021 glasgow •coordinate international treaties: conference of the parties (COP 21) 187 nations
unilever zero waste global footprint
•consumer product company •"best practice company" when it comes to sustainability •zero landfill project: zero waste of landfill in factories by 2020, achieved in 2014 •200 mil euros invested back in business by doing zero waste •generated job opportunities to help ensure zero waste •turned waste into value •took 140 mil tons out and reduced and reused them •got all suppliers on board and customers
intensity bottom line for smeal students
•developing populations do and will increase the demand for resources; how can business assist in supplying greater utility with less resources? •thus a sustainability driver •as basket of goods grows, we need to be able to provide but with less resources •do more with less
business's 3 p's
•economics •environment •social
p + 1
•esg •economics, social, and our corporate governance model
sustainability points of view?
•ex: earth video: environments and ecosystems shown •avatar video: realizing their world is in flames, working with government, war breaks out; taking down natural environment
sustainability and grand hyatt in singapore - what they do in environmental sustainability
•example of comprehensive approach to environmental sustainability •left over toiletries go to poor people •water through reverse osmosis water treatment •food thoughtfully sourced from organic farm •30% of herbs from rooftop garden •paper is now electronic •plant based dining option •engaged in hotel business; use sustainability as a lease to run business - cut costs, better for environment, more efficient
eap
•excellent performance •academic integrity •professional behavior
sustainability driver: intensity of resource usage rate
•favorite modern convenience: smart phone, fridge, microwave, flying in a plane, uber •created an average basket of goods: to live a great life we want to have this basket •need resources to have a basket of goods •basket of goods is your
climate change bottom line for smeal students
•global governments have concluded that the world "must" address GHG emissions and climate change (think IN and IPCC) •agreements to address this impacts global business leaders directly through incentives, regulation, and public pressure - thus a sustainability driver
women and senior management implications
•goal: getting women and men's business goals align •organizational structure/design that works for everyone and understanding the lives that they are living; ex: FMLA •workforce planning •flexible work arrangements •leadership succession planning •mentors/coaches/sponsors are open to everyone •child care responsibility; ex: on site day care •family care responsibility •home responsibility •society's attitudes
IPCC
•governing body that works on climate change •latest report: 5th UN report in 2015 •next report is 2022 •from 1980-2017 an average of 1 degree C increase •1980s: warming •satellite and surface data: trend up •heatwave index USA 1895-2015: 90 degree days; a lot in the 1930s - farmers were not able to grow crops b/c of drought and high heat •NOAA data on co2 in atmosphere: steadily increasing abundance since 1988 to 2018; naturally done and increase in population, expansion in goods
McKinsey resource revolution
•if population grows and intensity of resource usage gets very high, is there a possible answer? •facing unprecedented constraints in food, energy, land and water all across the planet - represents a challenge to humanity and innovation •from crisis to opportunity •In 2005 run up of gold copper and aluminum prices; 2.5 bil people were entering; how are you going to sustain economic growth when you have these prices; began to realize that high resource price may be beginning of massive opportunity: unconventional gas; US became major exporter of natural gas; and the solar market: price went down; markets drove 20% •when we change the cost of the structure in housing or an office, that has a knock on effect on all industries that use or take advantage of buildings •when we change the economics or resources required for transportation and movement of goods, any industry that ships anything benefits •when we virtualize a process instead of physically doing it, it spreads to many industries from elevators or automobiles, a lot of people benefit •enables us to capture the productivity growth that we need so that we can grow the economy while not increasing the demand for resources nearly significantly or while making the production of resources much cheaper than anyone expects •combo of industrial tech and info tech: how do we use resources in a way that will be a lot better?
the tragedy of the commons
•in context of population •Idea of common area broken up into 4 quadrants •think of 4 white spaces: common land, air, ocean that nations share •tragedy of the freedom of the commons: Ron, Lisa, qi, and mohit; we are all farmers in center county and all decide to get a cow; resources: grass, waste, milk, cheese; massive amount of white space - cow can roam wherever it wants (freedom to use commons for our own individual best interests); if Ron decides to get a second cow - the economic well being of my family just increased (more cheese, butter, milk, kids grow up stronger because healthy, sell to other folks to make money); qi says Ron is not smarter - I can do it too - gets himself a second cow; Lisa and mohit get another cow too because they think they are just as smart too; local farming area is developing, we can all do more; independently making decisions to grow; what if we did more -> went to 4 cows (all kids go to college, get smartphones, making more $); the commons is pressured because all are developing; if you take local farm and all independently •same thing goes with nations: we start to develop but don't think about everyone else who is independently developing •start thinking about if we should collaborate: thinking about tragedy of the commons where we overwhelm air land etc •busy road in philly: Schuylkill expressway: a major road is a commons, a common road that we can all share; replicated all around US and all over the world; were going to need twice as much in the future; when it first opened it was completely clear but now there is so much traffic; people pull off the road for businesses, gas, food, housing - everyone is acting in their own best interest - they build and build so traffic builds up - tragedy of commons: don't have enough space and use it up so causes traffic - causes a lot of car crashes
lightbulbs and stakeholders
•individuals: -decrease choice -cost/saving -replacement -resistance to change -disposal -recycling •companies: -business model change -maintenance decrease -regulations -atmosphere improved -savings -public relations -vender issues -competition •government: -politics -decrease in resource use -regulation -incentives -systematic change •environment: -use less resources -less waste -disposal issues (mercury) -energy savings -decrease in pollution -lower carbon emissions
kennametals triple bottom line
•industrial tooling company •Involved in transportation, aerospace/defense, earthworks, and energy •ron Jon did tour and talk : audit facility •Its a mess; audit is not great; inefficient lights - bad sustainability; goes back later and they changed everything and sustainability helps decrease costs; everyone is proud of plant •people: safety better, productivity increases, morale up, lower costs due to injuries, cleaner •profit: costs savings, increase productivity, customer visits, morale up, better employee interaction, maintenance cost less planet: decrease energy needed, less waste, decrease CO2
other business drivers for sustainability: 2nd tier
•innovation and design •energy •water •waste •government regulation •government incentives •GHG's (carbon) •public interest •non government impact •operations •facilities •media
boys to young men talk implications
•introductory diversity case focusing on a societal issue around men •educational front of the pipe line issue
why boys fail: Richard Whitmire video
•is there a new gender gap in education? •boys are failing at the future - college graduation •favoring less qualified men leads to researching equality for women •men lost a lot of jobs during the recession •boys don't develop verbal skills as quickly as girls •boys are not hard wired to keep up with girls at a young age- now boys don't ever really catch up •we need to get more women into engineering and math and put men into more education •don't listen to teacher when they say your boy will catch up - switch teacher, read to son
the business case for sustainability
•leadership: McKinsey study: 76% of CEO's believe that sustainability performance is key to long term growth •operations: DuPont past 10 years: energy projects cut costs by $2 billion, GHG's down 75% •customers: McKinsey study: 87% of customers are concerned about environmental impact products they buy (54% are willing to pay premium for sustainability) •investors: Bloomberg study: since 2003 SRI (socially responsible investing) market has grown 22% annually now at $26.5 trillion (15% of total) (SRI funds are outperforming dow jones average)
leadership competencies: center for creative leadership
•leading self: -ethics/integrity -drive/purpose -demo stature -learning capacity -management: you -self awareness -adaptability •leading others: -communicate -develop others -DIVERSITY -relationship building -management: teams •leading the organizations: -management change -decision making -management politics -risk taking -setting vision -business skills -manage the work
penn states strategic sustainability plan
•learn, live, lead •good stewardship = good business
**IBM structure of typical corporate sustainability journey
•legal & compliance (downside of environmental and social impact; complying to the law; think of waste as a cost) -> •values based self regulation (care about social and environmental aspects of world and believe business should do it)-> •efficiency (zero waste decreases costs significantly)-> •growth platform (run business with sustainability lens) •gets higher
blackjack CEO larry fink $6.3 trillion in assets managed
•letter to CEO's in their portfolio: •"our investment conviction is that sustainability and climate integrated portfolios can provide better risk adjusted returns to investors. we believe that sustainable investing is the strongest foundation for client portfolios going forward" •black rock issues 2 letters: one to companies that they invest in and one to clients that they work with saying sustainability is the bedrock of finance
sustainability - think: linear vs. circular economy
•linear economy: take - make - waste (dispose) •linear business model: design -> raw materials -> production -> use -> disposal •ex: where do umbrellas and juice boxes go? •cradle to grave: linear- drag resources out of earth, put product out there, don't know where it does after)
intergovernmental panel on climate change (IPCC)
•manages climate for the planet •United Nations •warming of temp in 1988: need to form a global group to inform us on what's going on •science based •coordinator of many groups •science, politics, and economics •IPCC doesn't actually do the research - they ask scientists
a better way
•people are going from linear model to circular •ex: catepillar: remanufacturing; make a platform of a bulldozer, out in field for 30 years, refurbish it by replacing all the things that need to be replaced and then send it back out •ex: Xerox: paper copiers; remanufacture; you don't ever buy a copier, you buy a copy •ex: kohler: makes bathroom products and has a ton of waste; decided to do a waste tile initiative; take waste and makes tiles •ex: coffee shop: uses sustainable products at coffee shop; used waste products from tubs as tiles •ex: netsle nespresso: uses aluminum pods instead of plastic; coffee grounds are used for fertilizer and aluminum is recyclable forever
big issues that drive sustainability: 3 big whys
•population growth •Intensity of resource usage rate •climate change •+ 3 lenses: scientific, political, and economic
the most sustainable car: prius or ferrari? which car has the largest impact on the planet?
•prius vs ferrari -design and raw materials are the same -manufacturing/operations: prius is zero waste, ferrari has brand new facilities -production numbers: prius has 4.3M sold, ferrari has 215,000 sold -customer use (miles/year): prius have 15,000 with 200 mil gallons of gas, ferrari has 4500 with 2.5 mil gallons of gas -end of life plan: prius goes 20 years but just goes to junk yard, ferrari's live forever •which is better for the planet? subjective and objective points of view come into play
sustainability - defined - in business
•profit (economics) •planet (environment) •people (social) •language check •the 3 p's
population bottom line for smeal students
•providing goods and services for 9 billion people by 2043 •thus a sustainability driver •7.7 bill to 9 bill people - how do we manage? how do we provide goods and services? -> sustainability
country who has the highest per capita use of resources
•qatar •small country, small population, oil rich country •ecological footprint: the amount of the earths resources that is needed to help you have your basket of goods; measures how fast we consume resources and generate waste compared to how fast nature can absorb our waste and generate new resources; the amount of land and water required to produce what we consume
smeal - world class in sustainability
•research •alumni •students •center for sustainability •MBA case competition •departments curriculum •careers •corporate engagement
population through 3 lenses
•scientific: every country in the world measures; ongoing measurement of total population; segmented by nation, area, etc •political: United Nations getting together to mitigate the growth of population b/c we are not sure about the future - will we have enough innovation to manage the change •economic: population growth is a massive economic event; 1.3 bil more people by 2043; add up per capita GDP you're adding trillions of dollars for the economy
intensity resource usage rate + 3 lenses
•scientific: look at ecological footprints, people moving into the middle class •political: all nations on earth are coming together and saying "what is the to do list?" - eradicate poverty so it means we want to economically develop - we need things like affordable energy to do that - how will we negotiate across nations to do that? •economically: I move 2 bil or 4 bill people to middle class by 2030: economic tsunami - what do we need to do to meet that demand?
sustainability points of view that polarize
•shelter environment: protect environment at all costs and at all times •use up environment: look at natural environment as externality; use rivers, air, land to get rid of waste; cut down forestry; use environment for profit
energy information administration
•source of data on climate change and energy
focus on this exam
•sustainability •diversity •government and business
sustainability and business
•sustainability: meet needs of today and no compromise on needs of tomorrow •triple bottom line (EES) & G: -profit (economic) -planet (environment) -people (social) •stewardship: responsible management of resources
integrated reporting
•take the FASB financial numbers I have now and couple them up with the social SASB numbers; where is company strong, weak, and where can it grow •goal for companies
why boys fail: some implications
•talent pool available for the workplace (no education, smaller talent pool) •need for higher skills - all individuals •specialized skills (engineering, info tech - women should be encouraged to move here, or more men should be ready for college) •educational reform - greater literacy •socialization issues in college and beyond (60/40 window) •more societal crime, drugs/alcohol issues
KPMG family for literacy (KFFL)
•teach literacy •read to kids, give them books, engage with them •"read to achieve" campaign •book fairs •4 millionth book fair was in houston after hurricane harvey
responsibility
•the ability or authority to act or decide on ones own without supervision •can you do the right thing?
intensity of resource usage
•the basket of goods for you to have the resources to use to live your life •If everyone in the world lived in the same average intensity as the US we would need 5 earths to take care of all the resources you would need
the emerging middle class
•the growth of people moving out of poverty and into the middle class •major initiative around the world: dealing with poverty •millennium development goals (MDGs) 2000-2015: 1. eradicate extreme poverty and hunger 2. achieve universal primary education 3. promote gender equality and empower women 4. reduce child mortality 5. improve maternal health 6. combat HIV/AIDS, malaria, and other diseases 7. ensure environmental sustainability 8. global partnership for development •by 2030 a lot of people moved out of poverty and into the middle class
if I take several billion people from vulnerable and poor to the middle class: dynamic that occurs
•their basket of goods/intensity of resource usage will start to look like yours; won't be buying Ferraris but they will be buying all the basic things of life that we take for granted •major economic movement and resource demand
how important is circular economy to your org?
•two years ago: 22% said very important •today: 38% said very important •2 years from now: 58% said very important
McKinsey: how companies can adapt to climate change
•value chains risks: -physical (extreme weather, drought, hurricanes) -prices (lower crop yields and prices go dramatically up) -products (product gets knocked out b/c climate change, coal to natural gas) •external stakeholder risks: -ratings (government agencies rate carbon, NGOs rate carbon on their sustainability growth) -reputation (a lot of people are interested in sustainability in companies) -regulation (gov says were gonna change what we think you can do - corporate average fuel economy (CAFE): fuel standard/ avg mile per gallon your car must be able to achieve
PwC sustainability maturity path
•value protection: compliance mode (reduce operation and compliance risk) and obligation: expected to DO (license to operate, reduce reputation risk) -> •value creation: efficiency: smart to DO (operational cost and value chain savings) -> •increasing value: leadership (innovation and growth, new business, brand enhancement)
ursula burns 2017 on technology
•was CEO of xerox •structurally business is still made for men because it is run by men •they care about women, but won't change structure •lack of clear understanding on womens health •hire women at all levels •if we have networks that are designed and work well for men, and we don't have the same networks for men, that's an issue •% of women who became mothers has increased: are we actually providing the structural support necessary to support families, motherhood, and raising a baby? •stay at home parenting is similar to what it was a century ago; a lot of kids have both parents work and kids see the stress of that
McKinsey and ellen MacArthur foundation: circular economy
•we've become more linear •can we change our way of thinking? •how can our waste build capital? •goods of today become resources of tomorrow •adopt a return and renew cycle •rethink the way we view ownership: design products that come back to producer to be reused •about energy and rethinking operating system •working on an ideal state: circular economy - right now we have a mix
sustainability drivers: the why
•why sustainability?
why COP 21 is such a big deal
•world climate summit nov dec 2015 •largely attended - about all nations of the world - in Paris •all agree that there is warming in the planet and that humans should be working to improve this situation •Increase limit in temp to 2 degree celsius •5 year review to see if it is working •$100 bil/year transfer from developed to developing nations that will negotiated •last COP meeting fight over verifying accountability
population growth as a driver
•world population: 7.7 billion •every time you add a person to the world it is an economic event that will have an environmental and social impact - resources become a very big deal •as # of people increase, people start to do family planning: BC, condoms, etc •Innovation increases
do why boys fail implications and women in senior management implications connect?
•yes •its all about workforce •i don't want to lose anyone at the front end - men and women literacy skills •want them all to be in a culture that allows them to achieve their highest potential •major diversity issue that applies to every single one of us
damien hooper-campbell: chief diversity officer
•zoom CDO •eBay CDO •über tech D&I •google diversity •goldman sachs •harvard business •morgan stanley •MBA harvard
