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© 2008, WhatTheyThink.com
Hosted by WhatTheyThinkSponsored by Kodak
Sustainability is the New Green!
Rick MazurV.P. Global Commercial Segment Marketing Kodak Graphic Communications Group
© 2008, WhatTheyThink.com 2
… taking steps beyond compliance to continually improve the Economic, Environmental and Social performance of a business, product or service.
Business Environment
Sustainability is the New Green
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Opportunity?
or
Burden
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Why has sustainability become so important?
Where are you on your path to sustainability?
Where is the industry on its path to sustainability?
Implications and strategies
Conclusions
Sustainable Strategies from Compliance to Differentiation
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What is Sustainability?
Triple Bottom Line – A reflection of a Company’s overall economic, social and environmental performance
Responsible Growth – Reducing our impact on the environment, protecting the safety of our employees and customers, and supporting the communities where we do business – while ensuring the sustained growth and profitability of the Company
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Who Cares and Why?ConsumersEnvironmental groupsBrand ownersDesignersShareholdersCorporate advertisersRegulatory agenciesEmployeesFuture generations
Depletion of Natural
ResourcesEnergy Costs
Shareholders
Consumers
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Consumers85% are willing to switch brands or purchasing habits to make tomorrow a better place
92% stated protecting the environment as a top concern
73% said they were willing to pay more for environmentally conscious products
Source – 2007 Edelman Consumer Survey
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Governmental PolicyEPA sets tougher air quality standards
• Current standard of 84 ppb of ozone• Have to 2010 to meet new limit of 75 ppb
Estimated cost of compliance is $8.4 billion
Lieberman Warner Climate Security Act is now the leading cap-and-trade bill in CongressGreenhouse Gas cap covers about 80% of U.S. economy
• 2012 Cap – Set at 2005 emissions• 2020 Cap – 15% below 2005 levels• 2050 Cap – 70% below 2005
US Electrical Energy Sources
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Shareholders
… “ increasingly, money managers are incorporating environmental, social and governance performance
factors into their investment decisions- Bruce M. Kahn, Deutsche Bank
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Source – Kodak client and web surveys , n=415
No plans
Have investigated, but not started
No certifications, but programs underway
Programs in place, with certifications
Where Are Print Service Providers on the Journey?
0 405 10 15 20 25 30 35
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What is Your Position on Sustainability?
Not involved Very involved
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Where Are You on Your Passage?Let’s take a quick test on the components of a Sustainability PlanAsk you to rank (1,3 or 5) your business on:
• Strategic intent• Stakeholder perceptions• Performance management• Industry stewardship
Steps you can take…
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Strategic Intent1 RATING 3 RATING 5 RATING
Sustainable or Responsible Not Documented Documented in Part of Triple Care Strategy response to Bottom Line
Customer Pull around Minimal Influence, but not Important to customer,Sustainability critical to printer factor choice process,requirements choice materials and suppliers
Shareholder value Minimal Influences investment Critical to investmentof sustainability in new technology in new technology
equipment, process, equipment, process,materials and supplies materials and supplies
Organizational Structure HS&E goals Implementing EstablishedManagement systems not evident in HS&E Management HS&E Management
strategy System – Self System – Third partyCertified
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Stakeholder Perceptions1 RATING 3 RATING 5 RATING
Employee perceptions Uncaring Neutral Embrace HS&E polices and practices
Customer perceptions Bad Actor Neutral Green and caring print provider
Industry perceptions Bad Actor Neutral Green and caring print provider
Public Investment Bad Actor Neutral Green and caring Community print provider, perception and other socially
responsible investors would buy shares
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1 RATING 3 RATING 5 RATING
HS&E Compliance No significant safety or property losses or fines in last:and Loss 1 year 2 years 3 years
Energy Consumption No goals Tracked but NOT Tracked OPENLYshared with employees, shared with employees,customers, community customers, community
Water Conservation
Air Emissions
Waste Management
Safety
Suppliers linked to No clear EHS Standards established Linked with LCA of processProduct Development or LCA design standards for design standards and products
Performance Management – Clear objectives and standards?
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Industry Stewardship1 RATING 3 RATING 5 RATING
Certifications, awards None 1 or more 1 or more inrecognition last 2 years last year
Community Involvement None Not formal, but Clear strategy some supportprovided
Recycling Initiatives in-plant only Assistance provided Assistance provided to Customers to customers and
industry on options forrecycling andspecifications forrecyclable materials
Customer Outreach/Training None Not formal, but Clear strategy to some support improve client as requested awareness of
sustainability in Printindustry
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Burden or Opportunity?
Average profits of 2% to 4% for Print Service Providers
Increasing costs of energy, raw materials
Weak economy
Longer term prospects that these costs will increase
RisksDo not know your current footprint
No plan
No organizational strategy
Regulatory fines
Customer and employee retention
Strategic opportunities1% - 2% to the bottom line in next 18 months
Higher customer and employee retention
Customer acquisition from differentiated position
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Printers Leading the Way
AC Graphics – Miami, FLBrown, Knight and Truscott - UKFocus Group – Sydney, AusGeoff Neil Printers – UKHemlock Printers – Vancouver, CAMetropolitan Fine Color – Vancouver, CAPictorial Offset – Carlstadt, NJUlenspiegel – GMBHAnd others…
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Complete a sustainability auditBuild a dialog with your customersThink about the paper you useThink about how paper is madeThink about the ink you useTalk to industry partnersImplement sustainable business modelsLean and Green go togetherSet standards and seek certificationStay informed
Practical Steps to Improve the Triple Bottom Line
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Documented StrategyStakeholder surveyCustomer surveyPerformance objectivesPerformance MetricsRisks and opportunitiesLife Cycle AnalysisCertificationsCommunity OutreachCustomer & employee training
Complete a sustainability auditClarify organizational ownershipSet business priority and strategyDetermine your GHG emissionsPrioritize bottom line impact ofstrategies and programs
• Energy and waste
Practical Steps to Improve the Triple Bottom Line
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Using Kaizen event to galvanize team mission, scope and measuresQualify and attack triple bottom line opportunities and risks
• Walk the Flow, Value Stream MappingProvide process improvements you can share with your customers
“Lean” and “Green” go together
Practical Steps to Improve the Triple Bottom Line
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Perform Lifecycle review on targeted print applicationsDevelop substrate substitution options for virgin paper and plasticsEmploy production technologies that reduce use of natural resources
• Automated workflows - Web2Print, Virtual proofing• Non process CTP systems• Advanced screening techniques • Digital color production systems• Compact fluorescent lamps• Low VOC inks• Hybrid or electric vehicles
Implement sustainable business modelsPractical Steps to Improve the Triple Bottom Line
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Lifecycle management Print on DemandShort run printingVirtual warehousing
Rethink the economic modelPractical Steps to Improve the Triple Bottom Line
Distribute and printPersonalized direct mailTransPromo bills andstatement
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Your suppliers and industry organizations should be your#1 resource
Direct resources toward meaningful local programs• Education and tools• Training• Reduce, recycle programs• Stay current on trends• Industry research
Talk to industry partnersPractical Steps to Improve the Triple Bottom Line
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Define your marketing strategy Brand your programLaunch with a big eventHold on going eventsCreate/add to your website Start a customer newsletterEmployee orientation
Customer recognitionEmployee recognition
Make Sustainability Part of Your Company Culture
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Closing CommentsSustainability is journey with significant opportunitiesCan provide a competitive advantage Becoming business criticalBegin or expand your program
Baseline your businessEstablish organizational planDevelop strategy and implementWork with your industry partnersPlay to win
© 2008, WhatTheyThink.com
Hosted by WhatTheyThinkSponsored by Kodak
Toward Greater Sustainability … Together
www.graphics.kodak.com/gogreenThank you!