Making Corporate Sustainability “Sustainable”

Carrie Freeman

EBBF Annual Conference

Lisbon Oct. 7, 2011

Corporate Sustainability performance has made

significant progress over the last five years

Why Are Companies Doing It?

RISK MANAGEMENTSupply chain

Natural resource depletionRegulation

Community pressure

BUSINESS AS USUALCost savings

BrandCompetition

FUELING GROWTHNew productsNew markets

Social Governance Environmental

Executive Concerns

Source: GlobeScan & Sustainability, Sept. 2011

Implementation Phases

Point of ViewEngaging the hearts of executives

Organization IdentityCreating a culture of sustainability

Systems and ProcessesDesigning ROI tools

Foundation of GrowthDeveloping innovation strategies

Half the world’s population lives on less than $2 a day

2/3rds of the world's population will face water stress by 2025

Point of ViewEngaging the hearts of executives

Computing power limits the accuracy of climate prediction

Provide incentives

Measure

engagement

Request involvement

Provide training

Set goals

Demonstrate corporate commitment & communicate

Visible advocate

Incorporate into all

business operations

and performance

management

Valued

Commit

Empowered

Support

Understanding

Involve

AwarenessInform

Norm

Expect

EM

PL

OY

EE

OR

GA

NIZ

AT

ION

Employees are

aware of company’s

environmental

commitment,

performance and

initiatives.

Employees

understand the

connection between

their actions and

company’s footprint

and are inspired to

participate

individually in efforts.

Employees are

encouraged in their

footprint reducing

efforts and barriers

are removed.

Employees are

valued for their

environmental

efforts. Goals and

performance

measurements are

in alignment with

this value.

Sustainability is

integrated into all

decision making

processes;

consciously and

unconsciously

MA

NA

GE

ME

NT

Organization IdentityCreating a culture of sustainability

Recruitment and Retention

A National Geographic magazine commissioned survey in Feb 2008, indicated that more than 80 percent of U.S. workers polled said they believe it is important to work for a

company or organization that makes the environment a top priority.

A study by the Students for Responsible Business concluded 83% percent of respondents chose an offer from a more socially responsible company if the salaries offered were equal,

while over 50% percent were willing to take a lower salary to work for a company with a good sustainable development reputation.

In 2009, many graduating Harvard MBAs signed a “MBA oath” showing their interest in working for companies that “strive to create sustainable economic, social and

environmental prosperity worldwide.”

Traditional ROIRevenue GrowthCost Reduction

Broader Business Value

Employee EngagementLicense to OperateRisk Management

Supply Chain Customer Benefit

Reputation and Brand

+Societal Value

CommunitySociety

Environment+

Shareholder Value

Systems and ProcessesImplementing a broader financial framework

Integrated Value Framework

Sources: Intel information based on multiple frameworks, including McKinsey and Boston College

Center for Corporate Citizenship, “How Virtue Creates Value for Business and Society”, April 2009

REVENUEOPERATIONSRISK

MANAGEMENT BRAND

Growth andInnovation

Cost Savings andContinuous

Improvement

License toOperate andGovernance

Reputation andGoodwill

Copyright © 2010 Intel Corporation. All rights reserved. Intel and the Intel logo are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries.*Other names and brands may be claimed as the property of others.

• Market expansion

• Product innovation

• New customer needs

• Operational efficiency

• Management quality

• Employee engagement

• Regulatory risk

• Community engagement

• Supply chain responsibility

• Differentiation

• Trusted partner

• Goodwill

10

Companies must meet the needs of humanity while doing so with few resources. This will define sustainable growth.

Foundation of GrowthDeveloping innovation strategies

-C.K. Prahalad and R.A. Mashelkar, HBR July 2010

Movement up the gears of corporatesustainability can be viewed as

progression from saving money tomaking money to transforming

money.Avastone Consulting