Business and Sustainability

4 steps to implementation (ABCD) - backcasting

- Awareness and Defining Success - Baseline Current State - Creative Solutions - Decide on Priorities

Red tape

- Burdensome and often unnecessary government administrative processes and regulatory requirements

Moral Reasons for CSR (Freeman attitude)

- Corporations cause social problems and have a responsibility to solve those problems - corporations have a responsibility to use their power as a force for good - corporate activities have social impacts and a company cannot escape responsibility for its effects - corporations rely on many stakeholders so should not be solely responsible to shareholders

regulatory requirement

- Government imposed obligations, licenses, and laws with which citizens and business must comply

Benefits of EPR

- Reduces Energy Use, and Air and Global Warming Pollution - Saves Taxpayer Money and Removes Government From the Waste Business - Creates Jobs, Business Opportunities, and Economic Development - Decreases Toxic Pollution - Reduces the Unsustainable Extraction of Natural Resources

due diligence (Anteaters in Thomas' car)

- assessing actual and potential human rights impacts - integrating and acting upon the findings - tracking responses - communicating how impacts are addressed

multi stakeholder dialogues can help

- avoid conflict - resolve conflict - jointly find/co-create new solution

1st generation biofuels

- bioethanol - biodiesel - biogas - BtL(biomass to liquid)

geothermal energy

- can be captured from the heat stored beneath the earth's surface or from the absorbed heat in the atmosphere and oceans

the natural step (Elise puked drunkenly clubbing)

- concentrations of substances extracted from the Earth's crust (minerals, mining) - concentrations of substances produced by society (plastic, antibiotics) - degradation by physical means (deforestation) - people are not subject to conditions that systematically undermine their capacity to meet their needs (rich vs. poor)

perpetual succession

- corporation goes on after employees or customer dies

entrepreneurs

- create value - are change agents in the economy - exploit opportunities - mobilize resources for their objectives

forms of subsidies for sustainable endeavours

- credit - direct spending - R&D support - Tax breaks

bioenergy

- different forms of usable energy obtained from materials referred to as biomass

steps from beyond compliance to integrated strategy

- eco-efficiencies in current products and processes - improve value chain conditions and footprints - create new eco-effective products, services, leases - embed sustainable in governance and culture

three-legged sustainability stool

- economic leg - environmental leg - social leg

Carroll's CSR Model (Don't ever lick ears)

- economic responsibility (be profitable) - Legal responsibility (obey the law) - Ethical Responsibility (be ethical. Do what is right. Avoid harm.) - Discretionary responsibility (contribute to the community; be a good corporate citizen)

Indivisible human rights

- economic, civil, social, political and cultural rights are interdependent and form one integral whole which cannot be divided

main types of biofuels produced in Canada

- ethanol - biodiesal

Legislation-passed by legislature or parliament

- existing or new - harder - lengthy - requires resources to enforce

Four step Model

- funnel - system conditions - sustainability principles - Backcasting

artificial person

- has the same rights and responsibilities as a person - corporations can be held responsible

manufactured capital

- including infrastructure, machines, tools and factories

four quadrants of enterprise sustainability

- innovation/repositioning clean technology - growth path trajectory sustainability vision - cost and risk reduction pollution prevention - reputation/legitimacy product stewardship

bioprocessing

- learn from something in nature then apply it in production

3 types of social enterprise models

- leveraged non-profit - social business - Hybrid

economy

- market viability - should be affordable by and accessible to a wide range of customers - profitable to the company that makes them - commerce = engine of change

Community capital corps (c3's)

- may issue shares and pay dividends (limited to 40%) - majority of profits must be directed towards a social purpose - dividends limited to 40% of annual profits - must have 3 directors who act with a view to the "community purposes" - liable for wrongful distribution of assets - must publish an annual "community contribution report" describing the company's social spending, community activities and dividends payments

sustainable investment (step) (NIC N' PIS)

- negative/exclusionary screening - positive/best-in-class screening - norms based screening - integration of ESG factors - sustainability-themed investing - impact/community investing - corporate engagement and shareholder action

closed system

- nothing disappears - everything disperses

non-profits without charitable status may:

- operate a business within the non-profit structure - set up a separate non-profit or co-operative organization to run the business - set up a separate for-profit business

political landscape

- parties - courts - decide how laws are enacted - public service

Naturalites

- personal drive to be sustainable and healthy - more concerned for personal health rather than planetary

less variable drivers

- policy cycle - governance arrangements - theoretical perspectives

PESTEG

- political - economical - social - technological - ecological - globalization

purpose of a CSR report

- portray the relationship between a corporation and society - improves communications between the corporate world and the broader society within which companies report

How Greenpeace works to stop the tar sands

- pressuring governments - educating shareholders - working with impacted communities

4 central strategies of natural capitalism

- radical resource productivity (reduce amount we are using) - biomimicry - service and flow economy (solutions based business model) - re-investing in natural capital

corporations

- regarded as artificial persons - owned by shareholders but exist independently - managers and directors have fiduciary duties to protect shareholder investments

key features of a corporation (3)

- regarded as artificial persons - owned by shareholders but exist independently - managers and directors have fiduciary duties to protect shareholder investments

leveraged non-profit

- revenue from grants & donations - no commercial activity - may or may not have "charity" status - provide a public good - must demonstrate impact in order to attract funding (Worldreader)

social business

- revenue generated entirely from commercial activity - economically self-sustaining - may be owned by a non-profit - may compete with 'traditional' businesses - often attract impact investors who are willing to accept below-market returns in exchange for valuable social/environmental benefits - makes scaling up easier - usually plow profits back into their social mission rather than distribute to shareholders - in B.C. may be community capital corporations (VidaGas)

hybrid organizations

- revenue generated from a mix of grants, donations and commercial activity - often provide a way for non-profit organizations to fill gaps in grant/donor funding and be more self-sustaining - when successful commercial, may transform into a social business - may be able to attract social investors to support commercial activities (FernwoodNRG, Village Reach)

Cradle to cradle

- seeks to create production techniques that are not just efficient, but essentially WASTE FREE - all material inputs and outputs are seen either as technical or biological nutrients

the slippery slope

- small acts of unethical behaviour are rationalized and this leads to more and bigger acts of unethical behaviour

equity

- social justice - chemicals exceed safe limits in factories - eco efficiency would reduce those amounts to meet certain standards; eco-effectiveness would not use a potentially dangerous chemical in the first place

types of energy (gosh! BBW)

- solar - wind - tidal (ocean) - biomass (wood) - geothermal (ground) - hydro - landfill gas - recycled energy - coal mine methane - anaerobic digestion - coal mine methane

key pillars of human rights

- universal - indivisible - inalienable

Compliance as an opportunity

- use stringent standards to benefit so you get first movers advantage - ensure that compliance with norms becomes an opportunity for innovation -> central challenge - competencies needed: ability to anticipate and share regulations - Innovation opportunity: using compliance to induce company and partners to experiment with sustainability

policy drivers

- variable drivers - political landscape - less variable drivers

Making Value chains sustainable

- work with suppliers and retailers - offer suppliers incentives - use more clean energy - introduce working from home

Protect

-states have duty (legal obligation) to protect rights

Why sustainability is a key driver of innovation

1. View compliance as an opportunity 2. Making Value chains sustainable 3. designing sustainable products and services 4. developing new business models 5. Creating Next Practice Platforms

10 divides

1. demographic 2. financial 3. nutritional 4. resources 5. environmental 6. health 7. gender 8. educational 9. digital 10. security

4 stages of lifecycle analysis (GIII)

1. goal & scope Definition 2. inventory Analysis (inputs/outputs) 3. Impact assessment 4. Interpretation (happens all the way through)

embedding sustainability into our organization

1. integrate into mission, and values 2. set goals 3. Training and developing 4. Incent 5. Integrate into your product and processes

5 stage sustainability journey (Pickles cause bad intestinal problems)

1. pre-compliance 2. compliance 3. Beyond Compliance 4. Integrated strategy 5. purpose & passion

borrow-use-return business model (Ron Is Easily Scared, Right?)

1. radical resource productivity 2. investment in natural capital 3. ecological redesign 4. service and flow economy 5. responsible consumption

framework on ethical decision making (Regina George Eats My Ass)

1. recognize the ethical decision 2. get the facts 3. evaluate alternative 4. make a decision and test it 5. act and reflect on the outcome

benefits of the business case to sustainability (Rosa Parks Eats White Tits Man)

1. revenue goes up 2. productivity goes up 3. energy consumption goes down (~75%) 4. materials used go down 5. reduce waste (~20%) 6. decreased turnover

7 sins of greenwashing (Have Ned voluntarily walk into lake frost)

1. sin of the hidden trade-off 2. sin of no proof 3. sin of vagueness 4. sin of worshipping false labels 5. sin of irrelevance 6. sin of lesser of two evils 7. sin of fibbing

4 main goals of Plan B

1. stabilizing population 2. eradicate poverty 3. restore earths natural support systems 4. stabilize climate

how does cap and trade work? (TSDES)

1. tally GHG emissions 2. Set a cap 3. Distribute permits 4. Enforce cap 5. step it down (reducing amount of GHG allowed)

why cap and trade?

1. tested & proven 2. cost effective 3. economically sound 4. prudent, long term investment 5. cap is the only policy guarantee

5 parts of ecological footprint

1. transportation 2. food 3. shelter 4. goods 5. services

5 stages of sustainability innovation

1. viewing compliance as an opportunity 2. making value chains sustainable 3. designing sustainable products and services 4. developing new business models 5. creating next practice platforms

Remedy

Grievance mechanisms by states & businesses to ensure HR abuse claims are redressed

Drifters

Have shifting commitment to many issues, including sustainability. young segment that tends to buy because of trends. Price is a concern to this group. - sustainability is seen as "cool" and people do it to "fit in"

Procedural Justice

Is the decision making process fair? (Did I have the power to change or influence the process leading to distribution of particular benefits or risks)

Interactional Justice

Is the interpersonal treatment of people affected by decisions fair (was information shared adequately/truthfully? Were people treated with dignity and respect?)

norms-based screening

Screening of investments against minimum standards of business practice based on international norms

Five Level Framework

Systems Success Strategic Actions Tools

social policies

a company's responsibility to the community

universal human rights

all human beings possess them; no distinction based on gender, nationality, sexual orientation, religion, culture, etc.

social entrepreneurs

are change agents in the social sector by; - adopting a mission to create and sustain social value - recognizing and relentlessly pursuing new opportunities to serve that mission - engaging in a process of continuous innovation, adaptation, and learning - acting boldly without being limited by resources currently in hand - exhibiting heightened accountability to the consistencies served and for the outcomes created

purpose/passion

be a successful company - company values mirror the values of their founders

biomimicry

be inspired by natures closed loop system

backcasting

begin with the end in mind - we have a vision of what you want - what do i do today to achieve this vision? - set goal for future - work backwards to the future

complicity

benefiting from other peoples bad behaviours (ex. Apple & Foxconn)

Respect

business responsibility not to infringe on rights of others

ecological redesign

companies eliminate human-made toxic chemicals from their production processes, minimize use of resources and energy, use closed-loop production systems, and decrease waste and harmful emmissions

designing sustainable products and services

companies must understand customer concerns, easier to team up with nongovernmental organizations

investment in natural capital

companies protect and restore ecosystems to sustain societal and business needs. they decouple economic growth from depletion of the global commons

radical resource productivity

companies stretch natural resources by increasing productivity for a given amount of a resource by factors of 4,10, or even 100

Inventory Analysis

compiling a list of everything included in products lifestyle

carbon tax shifting

complements cap & trade - integrate cap & trade through "reserve price" in auctions

financial capital

consisting of cash, investments, and monetary instruments

integrated strategy

contribute to a better world - do the right things because they're good for the company; they're also the right things to do

upcycling

describes the return to industrial systems with improved rather than degraded quality

Goal & Scope Definition

description/purpose of product

Unconcerneds

don't care about sustainability

Stakeholder model (Freeman)

emphasize on value going back to the community (economy, environment, social, quality) - competitors - civil society - gov't - customers - employees - suppliers

Shareholder model (Friedman)

emphasizes value going back to the shareholders - shareholder - employees - customers - suppliers

Extended Producer Responsibility (EPR)

environmental policy approach in which the manufacturer is responsible for the cost of the product after consumption/use

zero waste

goal to guide people in changing their lifestyle practice to emulate sustainable natural cycles, where all discarded materials are designed to become resources for others to use

Impact Assessment

group together impacts this product has on people and environment (measuring overall CO2 emissions, look at elements used and measure, toxicity of soil & water, air quality, degradation of land)

LOHAS

have strong attitudes regarding personal and planetary health, which are widely reflected in their behaviour. Heavy users of green products. Exude a strong influence over others.

a business model provides the rationale for:

how an organization.... - mobilizes the resources necessary to carry out its work - transforms these resources into various types of value - delivers value to customers and other beneficiaries - captures value to sustain itself and grow

progress

how many buildings have no smokestacks or dangerous effluents

productivity

how many people are gainfully and meaningfully employed

prosperity

how much natural capital we can accrue in productive ways

inalienable

human rights cannot be given away, sold or renounced

sustainable investing

investing approach making reference to environmental, social and governance (ESG) factors in the selection and management of investments

sustainability themed investing

investing in themes or assets specifically related to sustainability

positive/best in class screening

investment in sectors, companies or projets selected for positive ESG performance relative to industry peers

Distributional Justice

is the allocation of risks and benefits fair?

sustainable path

managing lifestyles and production to fit system conditions, restore ecosystems and help communities and people flourish

sustainable development

meeting the needs of the present generation without compromising the ability of future generations to meet their own needs

Conventionals

not particularly environmentally conscious in attitude, although their behaviours sometimes indicate otherwise- they are practical consumers whose energy conservation and recycling efforts can make them a viable target for some marketers. - see sustainable items to be a good investment

triple bottom line

profit, people, planet

Benefit corporations (B corps)

purpose-driven, create benefit for all stakeholders

downcycling

reducing the quality of material over time

cradle to grave thinking

refers to the conventional way in which companies take Earth's resources, materials & energy, and dispose wastes throughout a product's life cycle - "take, make, waste"

resource funnel

resources and ecosystem services are declining while demand is rising

fiduciary duty

responsibility of a corporation to act in the best interest of the shareholders

Interpretation

results are reported in the most informative way possible and the need and opportunities to reduce the impact of the product or services on the environment are systematically evaluated (CSR report, social media, signage etc.)

ILO 169

right to control own economic, social and cultural development - legally binding

beyond compliance

saving energy while reducing its associated carbon footprint; saving water; saving materials in its products and packaging; and saving waste costs

UN Declaration on Rights of Indigenous Peoples (UNDRIP)

states required to gain free, prior & informed consent - not legally binding

impact/community investing

targeted investments aimed at solving social or environmental problems.

lobying

the act of attempting to influence business and government leaders to create legislation or conduct an activity that will help a particular organization

compliance

the business manages its liabilities by obeying labor, environmental, health and safety regulations in the jurisdictions in which it operates. it does what it is legally bound to do while happily externalizing its ecological and social collateral damage.

pre-compliance

the company cuts corners and tries not to get caught if it breaks the law or uses exploitative practices that cheat the system

biocapacity

the earth's ability to renew its resources

Negative/exclusionary screening

the exclusion from a fund or portfolio of certain sectors, companies or practices, based on specific ESG criteria

human capital

the form of labor and intelligence, culture and organization

life cycle analysis

the life span of the product (from beginning to end) and understand the environmental impact of a product (guides our decision)

business model

the rationale of how an organization creates, delivers, and captures value

Integration of ESG factors

the systematic and explicit inclusion by investment managers of environmental, social and governance factors into traditional financial analysis

natural capital

the worlds stock of natural assets

corporate engagement and shareholder action

this strategy employs shareholder power to influence corporate behavior including through direct corporate engagement, filing or co-filing shareholder proposals, and proxy voting that is guided by comprehensive ESG guidelines

stakeholder maps

use for any firm ex. Edmonton waste - prov. gov't - environment - community - citizens (tax payers) - employees - energy

ecological overshoot

using resources faster than the earth can renew them

variable drivers

we do not control these - economy - public opinion - interest groups - external forces and events

service and flow economy

when products become obsolete or unable to perform their intended service, the company takes them back and recycles or remanufactures the returned products

ecology

• Environmental intelligence - Bio or tech nutrient - Meets criteria: waste equals food, respect diversity, use solar energy

non-regulatory approaches

•Ex Financial incentives (scrapIt, wood stoves, electric vehicles) or voluntary programs (plastic bags, micro beads) •Softer •Faster •Work with the market