an overview of the triple bottom line approach
DESCRIPTION
An Overview of the Triple Bottom Line Approach. Bob Willard www.sustainabilityadvantage.com. Agenda. Terminology The bottom line The catch 7 benefit areas What if’s. Terminology. “Sustainability”. “Sustainable Development (SD)”. “Corporate Social Responsibility (CSR)”. 3Es. - PowerPoint PPT PresentationTRANSCRIPT
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An Overview of the
Triple Bottom Line
Approach
Bob Willardwww.sustainabilityadvantage.com
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Terminology The bottom line The catch 7 benefit areas What if’s
Agenda
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Economy / ProfitsSustainable businessProfitsTaxes, R&DJobsExpendituresTrainingFair tradeCore values
Terminology
Environment / PlanetEco-EfficiencyManufacturing efficienciesOperations efficienciesProduct efficienciesSmart designCradle-to-cradle, take-backBeyond complianceRestorative to nature
Equity / PeopleEthical businessInternal employeesHuman rightsHealth & SafetyEmpowermentRespect, CaringLocal communityRest of the world
“Sustainable Development (SD)”
“Corporate SocialResponsibility (CSR)”
“Sustainability”
“Triple Bottom Line (TBL)”3Es 3Ps
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Business Priorities
Productivity Brand Image
Profit
Growth
Attracting & Retaining Top Talent
Managing Risks Innovation
Speed to Market
Leadership
Market Share
Motivation
Share Price
CompetitiveAdvantage
Governance
Expense Savings
New MarketsComplying withNew Regulations
Attracting & Retaining Customers
Responding to Emerging Market Forces
Revenue
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Dow Jones Sustainability Index
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
5.5
6
6.5
7
7.5
Jan-90 Jan-91 Jan-92 Jan-93 Jan-94 Jan-95 Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04
Valu
e of
$1
inve
sted
DS 400 S&P 500® Russell 1000®
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Potential profit increase: 38%
+ Energized employees+ Improved corporate image+ Competitive advantage+ Positioned for the future
Benefits to “SD Inc.”
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1. Show senior leadership Include SD in vision / mission / strategies Avoid “green-washing” hype Visibly support SD: speeches, questions, actions
2. Educate the whole company Visibly sponsor and support the sessions
3. Establish an “SD Profit Center” Led by a top person Reinforces that it is business strategy vs. a
compliance or philanthropy issue
The Catch
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1. Reduced recruiting costs2. Reduced attrition costs3. Increased employee productivity
4. Reduced expenses in manufacturing5. Reduced expenses at commercial sites
(energy, water, consumables)
6. Increased revenue / market share7. Reduced risk, easier financing
7 Benefit Areas
Usual
focus
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1. Reduced recruiting costs -1%2. Reduced attrition costs -2%3. Increased employee productivity +10.5%
4. Reduced expenses in manufacturing -5% (-2.5%)5. Reduced expenses at commercial sites -20%
(energy, water, consumables)
6. Increased revenue / market share +5%7. Reduced risk, easier financing -5%
7 Benefit Areas … % Improvement
… yielding a Profit increase of +38%
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7 Benefit Areas … Relative Sizes
Recruiting
Attrition
Productivity
Manufacturing
Commercial Sites
Revenue
Risk, Financing
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10 Market Forces
10 Market Forces5 Mega-Issues 5 Demanding
StakeholdersClimate Change Green
ConsumersPollution & Health
Activist Shareholders
Globalization Backlash
Civil Society / NGOs
Energy Crunch
Government Regulators
Erosion of Trust Financial Sectors
Sea ChangeOf
RisingExpectations
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The Perfect Storm … of Opportunities
Innovation
ProductivityGrowth
Brand
Image
CompetitiveAdvantage
$aving$Revenue
+38% Profit
10 Market Forces5 Maga-Issues 5 Demanding
StakeholdersClimate Change Green
ConsumersPollution & Health
Activist Shareholders
Globalization Backlash
Civil Society / NGOs
Energy Crunch Government Regulators
Erosion of Trust
Financial Sectors
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1. Reduced recruiting costs -1%2. Reduced attrition costs -2%3. Increased employee productivity +10.5%
4. Reduced expenses in manufacturing -5% (-2.5%)5. Reduced expenses at commercial sites -20%
(energy, water, consumables)
6. Increased revenue / market share +5%7. Reduced risk, easier financing -5%
7 Benefit Areas … % Improvement
… yielding a Profit increase of +38%
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1. Reduced recruiting costs -1%2. Reduced attrition costs -2%3. Increased employee productivity +10.5%
4. Reduced expenses in manufacturing -5% (-2.5%)5. Reduced expenses at commercial sites -20%
(energy, water, consumables)
6. Increased revenue / market share +5%7. Reduced risk, easier financing -5%
What if …
… yielding a Profit increase of +38%
-2%
+35%
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1. Reduced recruiting costs -1%2. Reduced attrition costs -2%3. Increased employee productivity +10.5%
4. Reduced expenses in manufacturing -5% (-2.5%)5. Reduced expenses at commercial sites -20%
(energy, water, consumables)
6. Increased revenue / market share +5%7. Reduced risk, easier financing -5%
What if …
… yielding a Profit increase of +38%
+4%
+23%
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1. Reduced recruiting costs -1%2. Reduced attrition costs -2%3. Increased employee productivity +10.5%
4. Reduced expenses in manufacturing -5% (-2.5%)5. Reduced expenses at commercial sites -20%
(energy, water, consumables)
6. Increased revenue / market share +5%7. Reduced risk, easier financing -5%
What if …
… yielding a Profit increase of +38%
-2%
+4%
+20%
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An Overview of the
Triple Bottom Line
Approach
Bob Willardwww.sustainabilityadvantage.com