SUSTAINABILITYDr. Ron Lembke

What is “Sustainability?” The ability to keep doing something for

the indefinite future If it’s not profitable, it’s not sustainable What allows a company to survive?

Meeting customer demands Developing new products Keeping costs low

Treehugger Fringe

Industry Thinks it’s Important

Students Care Stanford MBA survey

97% of students say they would take lower pay for a company with good CSR policy (Corporate Social Responsibility)

What is “Sustainability?” Brundtland Commission (1987):

“development that meets the needs of the present without compromising the ability of future generations to meet their needs”

ESG Environmental – Energy, Carbon, GHG, Water, etc. Social

Corporate Social Responsibility: quality of life for employees, their families, and the community

Labor practices, healthcare, education, diversity, safety Governance

Ethics, responsibility, Sarb-Ox Tyco, Enron, WorldCom

Sustainable Economic Development

Triple Bottom Line Environment (Planet)

What is your impact on the planet? Society (People)

What is your impact on people? Economic Performance (Profits)

How are your profits?Measurement Clearer alignment to corporate strategy Long-term targets, measurement systems Transparent reporting

Corporate America Catches On

GE – Frank Mantero, Director Corporate Citizenship Programs Investing and Delivering in Citizenship Audited, like financial statements 40% of value based on reputation It’s not “giving” back – it’s a

partnership Wal-Mart

Sustainable Supply Chain “We’re making money at this”

600% increase in carbon reporting consulting

Corporate Reporting

Conclusions Companies are increasingly taking

“Sustainability” more seriously Exactly what does that mean? Stay tuned. More in the next talk.