Download - AmCham Belgium - AT Kearney Green Survey Results

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Page 1: AmCham Belgium - AT Kearney Green Survey Results

AmCham Belgium Green Survey

How green are we?

September 29th, 2010

Page 2: AmCham Belgium - AT Kearney Green Survey Results

AMCHAM BELGIUM

Why eco-sustainability matters?

Page 3: AmCham Belgium - AT Kearney Green Survey Results

AMCHAM BELGIUM

As billions of people improve their living standards, resources will inevitably become limited

Today Future, 20xx

7 bn.100

(indexed)

• Developing countries strive to increase standard of living

• Fierce competition for resources leads to sharp price increase

• Current business models are becoming constrained

The only way to survive this environment is to focus on “smarter” resource usage

One planet Five planets

20%

Resources

80%

20%

# People

80%

Developing countries

Developed countries 7 bn. + X 500

10%

Resources

98%

2%

# People

90%

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AMCHAM BELGIUM

Sustainability is of strategic importance

Economic Development

Environ-mental

Protection

Social Wellbeing

Regulation and activism

Resource scarcity

Consumption patterns

The sustainability challenge… … is amplified by three main forces

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AMCHAM BELGIUM

Eco-sustainability represents formidable challenges and opportunities for companies

Reven

ue

Co

sts

Risk Opportunity

New Products

Carbon Tax

“Revenue Threat” “Growth Platform”

“Cost Peril” “Efficiency Booster”

Packaging weight

reduction

Declining relevance

of current product portfolio

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AMCHAM BELGIUM

To address those challenges and opportunities, companies need to take a product lifecycle approach

New end-to-end lifecycle approach to sustainability

Traditional inward-looking approach to sustainability

CO2Share of emission

Supply Production DistributionUsage and disposal

60-70%

80-90%

80-90%

Page 7: AmCham Belgium - AT Kearney Green Survey Results

AMCHAM BELGIUM

To assess eco-sustainability of its members, AmChamBelgium has, with A.T. Kearney, conducted a green survey

Support functions(sales, marketing, administration)

Corporate strategy & business model

R&DPurcha-sing

1

2

3

25 companies participated in the survey

Product use

Distri-bution

Disposal

Services

Production

To what extent is eco-sustainability a key element of

company strategy and embedded in the organization?

How does the company manage eco-sustainability in its day to day

operations?

To what extent are eco-

sustainability principles applied

in support functions?

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AMCHAM BELGIUM

Eco-sustainability in Corporate Strategy & Business Model

Page 9: AmCham Belgium - AT Kearney Green Survey Results

AMCHAM BELGIUM

Sustainability is clearly recognized as a positive force for future performance

Impact of eco-sustainability on profitability % of respondents

10%

20%

10%

Positive

None

Negative

Next 3 yearsLast 3 years

90%

70%

Source: AmCham Belgium – A.T. Kearney Green Survey 2010

A similar trend in terms of

revenue growth

Eco-sustainability seen as a key enabler

to outperform industry peers

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AMCHAM BELGIUM

Primary eco-sustainability objectives are brand and reputation improvement as well as regulation compliance

Product differentation

71%

Risk management

83%

Increased efficiency

88%

Cost reduction

92%

Employee motivation

92%

Compliance

92%

Brand/reputation

96%

Objectives in your eco-sustainability strategyFrequency in %

Source: AmCham Belgium – A.T. Kearney Green Survey 2010

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AMCHAM BELGIUM

Sustainability is clearly perceived as a key risk factor to be managed

Competitor, substitutes

Geopolitics

Economics, globalization,

tariffs

Regulatory change

Consumer and demographic

Technology & innovation

Environment and climate

change

84%

72%

64%

60%

60%

52%

48%

Perceived and managed long term risksFrequency in %

Source: AmCham Belgium – A.T. Kearney Green Survey 2010

Page 12: AmCham Belgium - AT Kearney Green Survey Results

AMCHAM BELGIUM

84% of survey participants emphasize eco-sustainability in their strategy but much less translate it into targets

% of respondents Frequency in %

16%

Keyelement

Not akey element

84%

19%

29%

62%

Water usage Paper Consumption

CO2 emissions or energy usage

Importance of eco-sustainability in the company global strategy

Defined targets in key sustainability areas

Source: AmCham Belgium – A.T. Kearney Green Survey 2010

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AMCHAM BELGIUM

(1) Management by ObjectivesSource: AmCham Belgium – A.T. Kearney Green Survey 2010

% of respondents Frequency in %

Most senior person accountable for

sustainability strategy

Eco-sustainability rewarding method

Responsibility and accountability for sustainability is not yet firmly embedded in the organization

Level of staff with sustainability goals

included in their MBO1)

Frequency in %

Board ofDirectors

or onelevel below

Two levelsdown

the boardor below

100%

70%

30%

Manager 33%

Senior Manager/Associate

Director24%

Director 29%

Vice President 24%

24%Member of the

executivecommittee

Other 10%

Reco-gnition

rewards52%

Monetaryrewards

24%

At leastone type

of reward67%

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AMCHAM BELGIUM

Leaders in eco-sustainability have defined a clear strategy and structurally embedded it in their organization

Eco-sustainability performance for Leaders and Followers% of total score

(1) Top 25% performersSource: AmCham Belgium – A.T. Kearney Green Survey 2010

83%

62%

84%

27%31%

65%

+56%

+31%

InvestmentsOrganization and KPI’sStrategy

Leaders

Followers

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AMCHAM BELGIUM

Eco-sustainability along the Value Chain

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AMCHAM BELGIUM

Companies tend to focus their sustainability efforts within their boundaries

Companies with eco-sustainability policies translated into concrete actions % of respondents

37%

63%

45%

60% 57%

Supply Production DistributionUsage and disposal

R&D

Support functions

Within 4-walls

Outside 4-walls

Not applicable (mainly R&D driven)

The next challenge is to further engage suppliers

Source: AmCham Belgium – A.T. Kearney Green Survey 2010

Page 17: AmCham Belgium - AT Kearney Green Survey Results

AMCHAM BELGIUM

Leading companies have a stronger eco-sustainability focus across the entire value chain

54%

44%

83%

52%

83%

50%

29%

44%

33%

52%

+19%

+39%+31%

Support FunctionsDistributionProduction/ServicesSupplyR&D

Followers

Leaders(1)

(1) Top 25% performersSource: AmCham Belgium – A.T. Kearney Green Survey 2010

Eco-sustainability performance in core adding-value activities % of total score

Page 18: AmCham Belgium - AT Kearney Green Survey Results

AMCHAM BELGIUM

60% of companies recognize that eco- sustainability performance starts at the design stage

60% of companies

take concrete actions in

R&D

Supply

Production

Usage and disposal

Distribution

• New manufacturing line reducing energy usage by 30%

• Detergent enabling washing machine to operate at 15°C

Examples from participants

• More compact detergent enabling to decrease transport volume by 40-57%

• Minimize use of volatile organic compounds (VOC) in products

Design (R&D)

UsageManufac-turing

High

Low

Environmental impact influenced

Source: AmCham Belgium – A.T. Kearney Green Survey 2010

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AMCHAM BELGIUM

Companies tend to focus more eco-sustainability improvement on process improvement

14%

14%

14%

25%

29%

43%Raw material

reduction57%

Use of eco-friendly raw material

71%

Energy efficiency 75%

Use of green energy 86%

Waste reduction 86%

Water reduction 86%

Formal policy No Formal policy

Raw material changes are seen as more difficult to implement

Efforts in production towards eco-sustainability% of respondents

Process related

Product related

Source: AmCham Belgium – A.T. Kearney Green Survey 2010

Page 20: AmCham Belgium - AT Kearney Green Survey Results

AMCHAM BELGIUM

Companies have started to implement sustainable procurement …

56%

38%

36%

23%Awards andrecognition

69%46%

Staff training 71%36%

Sustainabilityevaluation criteria

77%38%

Writtenguidelines

100%44%

Currently do it

Plan to do it within 12 months

33%

30%

Policy & clear guidelines

Policy but no guidelines

No policy

37%

% of total spending value% of respondents

Scope of sustainable procurementProcurement actions related

to eco-sustainability

… however, guidelines cover less than 40% of their spending

Source: AmCham Belgium – A.T. Kearney Green Survey 2010

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AMCHAM BELGIUM

% of respondents % of respondents

Excluding suppliers based on insufficient performance in

sustainability

Recognize or reward suppliers with good eco-sustainability practices

Pressure on suppliers regarding their sustainability performance is expected to increase significantly

23%

8%

<10% of the time

>10% of the time

Never

Within 5 years

57%

43%

Today

31%

54%

15%

5 yrs ago

69%

50%

33%

Today Within 12 months

Source: AmCham Belgium – A.T. Kearney Green Survey 2010

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AMCHAM BELGIUM

Traceability in the supplier chain is a key pre-requisite to ensure eco-sustainable supply

29%

69%

92%36%

23%

8%

Third- to End-tier suppliers

Second-tier suppliers

8%

First-tier suppliers

36%

No visibility

Partial visibility

Full visibility

Companies visibility in their suppliers’ eco-sustainability practices% of respondents

Source: AmCham Belgium – A.T. Kearney Green Survey 2010

Page 23: AmCham Belgium - AT Kearney Green Survey Results

AMCHAM BELGIUM

As a result, environmental certification of supplier is expected to increase

38%

15%

Within 12 monthsToday

62%

54%

Within 12 monthsToday

% of responses

Require environmental certification from suppliers

Collaborative process to improve supplier eco-performance

% of responses

Source: AmCham Belgium – A.T. Kearney Green Survey 2010

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AMCHAM BELGIUM

Common practices

In the support functions, potential to reduce environmental footprint is still under-exploited

• Companies make efforts to save energy in buildings:̶ Insulation efforts̶ Energy efficient IT systems̶ Water saving devices

• Very few companies have energy efficient / passive buildings

• Many companies try to limit business and home-to-work travel

• Most companies take actions to reduce paper consumption

• 12% of companies do not sort waste

• Very few companies have incentives in place to involve all employees

• 57% of companies don’t use green energy

• 77% of companies use recycled paper

Opportunities Overall

Green Infra-

structure

Influence behavior

Consume green

Medium

Medium

Poor

Source: AmCham Belgium – A.T. Kearney Green Survey 2010

Page 25: AmCham Belgium - AT Kearney Green Survey Results

AMCHAM BELGIUM

Lessons from the green survey

Look at sustainability as an opportunity

and with a long term perspective

Make sustainability part of your strategy,

ensure leadership commitment

Embed sustainability in the organization and culture through

targets, KPI, and people involvement

Make sustainability a key component of

your product design

Take a product lifecycle approach across the entire

value chain

1 2 3

4 5

Page 26: AmCham Belgium - AT Kearney Green Survey Results

AMCHAM BELGIUM

For more information, please contact :

Benoît Nachtergaele

Principal

A.T. Kearney

Tour & Taxis

Entrepôt Royal – Koninklijk Pakhuis

Av. du Port 86C b411 Havenlaan

B-1000 Brussels

Belgium

Tel : +32 2 504 4851

[email protected]

Johan Kestens

Partner

A.T. Kearney

Tour & Taxis

Entrepôt Royal – Koninklijk Pakhuis

Av. du Port 86C b411 Havenlaan

B-1000 Brussels

Belgium

Tel : +32 2 504 4803

[email protected]