what does sustainability mean for you

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Understanding the forces of innovation that brought us to our present world condition helps us to understand the sustainable choices available for the future. A look at current corporate and consumer behavior and communication. Suggestions for the SME who wishes to authentically position his company as a sustainable business.


  • 1. What does sustainability mean for you? Ellen Pabst von Ohain www.phoenix-english.com instructor@phoenix- english.com

2. Hi! My name is Ellen Pabst von Ohain. Im an International Communications Coach and Consultant and a Lecturer for sustainable and authentic business practices and marketing. I'm on the Board of Directors for a non- profit, worldwide youth organization. I work with CEOs and management in the German Mittlestand (small business owners). My team and I analyze and pick out the golden nuggets of what these companies do best and examine how they conduct their business. Then we develop a marketing message. That message is particularly aimed at other businesses and consumers who have a measurable interest in sustainability. It is also designed to attract those consumers and businesses who are less aware of the issues and concepts of sustainability. Why waste time trying to reach those who are less interested or informed? Because when consumers are better informed they are able to make better choices. Then they look for those golden nuggets. 3. This deck was prepared for a presentation on May 18, 2014 about Sustainability Trends. The audience was German businessmen and businesswomen. For a full transcript and explanation of the slides, please contact me. 4. 4 WAVES OF INNOVATION Traditionally: Asset based Inaccurate Costing 5. What it means for you LOHAS A Coupla Questions Free Golden Nuggets 1 2 3 4 5 Howd we get here? The Players Redefining Key Words The Triple Bottom Line Wheres it going? What does this mean for the future of Business? The Purpose Economy The Triple Bottom Line CSR Overview A Coupla Scary New Concepts 1 2 3 6. Introducing the Purpose Economy or.. Capitalism 2.0 7. THE PLAYERS 7 Government Companies Shareholders Suppliers Employees Host countries: raw materials Educational Institutions NGO/NPOs Community Members Consumers Mom (Natural Capital) 8. THE PLAYERS 8 Government Companies Shareholders Suppliers Employees Host countries: raw materials Educational Institutions NGO/NPOs Community Members Consumers Mom (Natural Capital) Companies Shareholders Consumers 9. 5/24/2014 9 http://shrinkthatfootprint.com/shrink-your-product-footprint Cradle to Grave 10. 5/24/2014 10 http://shrinkthatfootprint.com/shrink-your-product-footprint Reuse Recycle Reduce 11. 5/24/2014 11 http://shrinkthatfootprint.com/shrink-your-product-footprint Reuse Recycle Reduce Cradle to GraveCradle to CradleTRIPLE TOP LINE (RE)DESIGN 12. http://www.flickr.com/photos/denisdenis/7585813810 Scary new concept #1: Calculating the true costs 13. 13 TOO MANY CLASSIFICATIONS WITH TOO LITTLE INFO TOO CONFUSING ORGANIZATIONS WORKING TO SIMPLIFY AND STREAMLINE: B CORP (USA) 14. 14 15. Scary New Concept #2: Products rated on the value, cost and benefit they bring to society as well as the individual. 16. Scary new concept # 3: Value for the Shareholders shift to include the Stakeholders Redefine and measure value http://edition.cnn.com/2012/03/23/opinion/fear-failure-kelsey/ 17. 18http://www.youtube.com/watch?v=V-VFZUFJwt4 http://www.bcorporation.net/ COMPANIES THAT GET B CORP CERTIFICATION ARE NOT REQUIRED TO FOCUS SOLELY ON PROFITS. 18. Ernst & Young Survey 2011 Shareholders Proposals And Concerns Today 19. 5/24/2014 20 CITIGROUP INC. 2014 Annual Meeting of Shareholders Tuesday, April 22, 2014 20. 5/24/2014 21 PAY RATIOS 21. From 2006-2012, Ocean Tomo designed and managed an investment index that tracked public companies with a high intellectual property and intangible ratings. During this period, the index rose 7% even as the S&P 500 index declined. Wharton School professor Alex Edmans compared the 1998-2010 financial performance of the S&P 500 index to companies in Fortune magazines annual list of Best 100 Companies to Work For. He found that if you had invested in the S&P index, you would have averaged an annual 4% return. If you had bought and held the 1998 list of Best 100 Companies, your average annual return would have exceeded 6%. The Parnassus Workplace Fund invests in companies with good workplaces. Since its inception in 2005, its performance has roughly been double that of the S&P 500. The socially responsible investment company HIP Investor has conducted research across a range of data, including women on the Board, ISO 9000 certification, and environmental performance. HIPs overall finding: The more new metrics are measured and managed, the stronger and more resilient performance you can achieve lower risk, enhanced return potential and competitive advantage. Women-led tech companies achieve 35 percent higher return on investment, and, when venture-backed, bring in 12 percent more revenue than male- owned tech companies 17% of management and only 6% on Bd of Directors 22. CSR and the Sustainability Report http://www.organicsoul.com/understanding-the-triple-bottom-line-its-shortcomings-and-the-solution/17 23. 24 24. The Elephant (Authentic Sustainable Business Practices) and the Blind Men http://www.berteigconsulting.com/ 25. 26 26. 27 Companies are stating they are green. Result: Consumers dont believe them! Companies are trying to teach consumers about how products are made. Result: Not many consumers care! Why not? Mobium Group 2011-13 Australia 27. 87% of North Americans say the #1 Sustainability issue is 5/24/2014 28http://www.flickr.com/photos/39831157@N05/3696350373/in/photolist-6CCLbR-6Ez8zF-6EBP9c-6FLibU-6Hfuvi-6HjyqC-6Kiye6-6LiEW6-6MeMUP-6NNqSR-6Q7Tod-6Qpx1w-6Ronsz-6TaELy-6TYdxK-6UfXuL-6URAbM-6V4iuB-6V7Zcf-6W9FU1-6Wat41-6WgH8B-6X6pBN-6Z6mb3-6ZHk13-71snGy-72rcew- 72Vp4N-73ougj-73YkmA-75oXtH-762n7Z-773u8e-77ofcR-77xbFX-78bZu3-78tQXh-78ZgNf-7b3KNb-7cdGnE-7cu74L-7cuLmC-7d5Ysk-7goJoR-7gs2Yq-7gBvSm-7ihDwR-7ijS4A-7iEknp-7jDRej-7kknme 28. 87% of North Americans say the #1 Sustainability issue is 5/24/2014 29http://www.flickr.com/photos/39831157@N05/3696350373/in/photolist-6CCLbR-6Ez8zF-6EBP9c-6FLibU-6Hfuvi-6HjyqC-6Kiye6-6LiEW6-6MeMUP-6NNqSR-6Q7Tod-6Qpx1w-6Ronsz-6TaELy-6TYdxK-6UfXuL-6URAbM-6V4iuB-6V7Zcf-6W9FU1-6Wat41-6WgH8B-6X6pBN-6Z6mb3-6ZHk13-71snGy-72rcew- 72Vp4N-73ougj-73YkmA-75oXtH-762n7Z-773u8e-77ofcR-77xbFX-78bZu3-78tQXh-78ZgNf-7b3KNb-7cdGnE-7cu74L-7cuLmC-7d5Ysk-7goJoR-7gs2Yq-7gBvSm-7ihDwR-7ijS4A-7iEknp-7jDRej-7kknme ..feeling connected to my friends, my family, my community. 29. The Four Pillars of Sustainability from Human (Employee/Consumer/Community Member) Point of View Personal Social Environmental Spiritual 30. CROSSING AGE, ECONOMIC AND GEOGRAPHIC BORDERS; COMMON GROUND UNDERSTAND THAT EVERYONE IS A LOHAS OR ISNT THE LOHAS SPECTRUM UNCONCERNED 31. EVERYONE IS A LOHAS, OR ISNT ..and everything in the middle What do they care about and how much? Unconcerned 17% Conventionals 19% Drifters 25% Naturalites 19% LOHAS 19% 32. LOHAS Know their own power Use Communities to Connect (Virtual and Physical) Willing to pay 20% more for (authentic) sustainable products Introduce and influence family/friends to sustainable brands Concerned about transparency/Fair trade/recyclable materials and renewable energy Make choices and Purchase from companies/brands with similar values to their own 33. 34 34. Japan: 29% or 37 million adults are LOHAS consumers 35 germany 35. A Sept 2013 survey in the UK suggests that demand for green products appears to be increasing: three in ten (27%) respondents said they are more likely to buy a sustainable product and/or service than 5 years ago. 36. A Sept 2013 survey in the UK suggests that demand for green products appears to be increasing: three in ten (27%) respondents said they are more likely to buy a sustainable product and/or service than 5 years ago. 37. 38 38. Walmart SAP Unilever Caesars Apple 39 39. Holistic Approach and Balance THE TRIPLE BOTTOM LINE Sustainable PROFIT (Economic) PLANET (Environmental) PEOPLE (Social) 28 40. You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete. R. Buckminster Fuller 41. Time for some Golden Nuggets 42. BEING GREEN IS BECOMING UNCOOL 43 BECOMING GREEN IS COOL 43. HOW DO YOU BECOME AUTHENTICALLY GREEN? HOW DO YOU SELL IT? 44 44. RETHINK YOUR COMPANY FOR A HOLISTIC APPROACH TO SUSTAINABLE PRACTICES, DONT BE PIECEMEAL. 45 1 45. IDENTIFY AND ENGAGE YOUR STAKEHOLDERS. DETERMINE WHO CARES ABOUT WHAT AND HOW MUCH. 46 2 46. 47 3 SEEK LEGITIMATE ACCREDITATION. HAVE OTHERS DECLARE YOUR AUTHENTICITY. 47. THEN, DEVELOP YOUR MESSAGE AND COMMUNICATE TO YOUR STAKEHOLDERS ABOUT YOUR ACTIVITIES, EACH ACCORDING TO THEIR NEEDS, BUT MAKE IT RELEVANT TO THEM AND THEIR WORLDS 48 4 48. GET IN NOW. YOU DONT WANT TO BE LEFT BEHIND OR CONSIDERED A FOLLOWER WHEN THIS THING REALLY GETS ROLLING. LEAD. JOIN OTHERS WHO SHARE THE VISION. FORM ALLIANCES. 49 5 49. RECOGNIZE THE HERO Finding out exactly what your customers and consumers know about the sustainability of your product is tantamount to positioning yourself as authentically sustainable. If they dont know enough, you owe it to them and to yourself, to educate them. Main values for Germans are quality, product features and innovation, therefore products and services are sold on those points. Price and Image are also in the mix but the German Mittlestand does not rely on the brand marketing that large enterprises do. SMEs operate within a local physical community and literally face community members daily. In part, their survival greatly depends on local social acceptance. The value of sustainability is still a novelty feature and not yet a main product feature although Germans and Europeans are relatively further along than other Western countries regarding perception. 50. Redefinition of Value and Brand Renewal! Authentic Sustainability equals Quality.. The Competitive Advantage for Companies and Communities 51. Phoenix Sustainable Communications International Communications Consultant