Global and Industry Comparison
ENBUS 601
August 26, 2016
Presenters: Oussama Benkabbour | Savita Benkabbour | Manpreet Dhillon | Josephine Pham
Top Drivers for Sustainability
Objective
• Compare business drivers for sustainable development (SD) across three industry leaders.
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• Beyond Reputation
• Global Drivers
• Industry Leaderso Apple Inc.
o Exxon Mobil
o Nestlé
• Industry Comparison
• Insights & Recommendations
• Q&A
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Agenda
Beyond Reputation
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0
20
40
60
80
100
% Embedded % Not embedded
Why have companies embedded sustainability practices?%
Source: McKinsey, 2011
Global Drivers: Why Sustainabi l i ty?
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Human Rights
Access to Markets/
New Build
Customer Attraction
& Retention
Media/NGO
Pressures
Continuous
Improvement
Increase
“Eco” –Efficiencies
Due Diligence
Protection/Assurance
Source: Ethical Corporation, 2015
Apple Inc. – Think Different
• Multinational technology company
• Revenue: $233.7B USD (2015)
• Market Cap: $700B USD (2015)
• Employees: 110,000 (2015)
• Strategy: Hardware, Software and Services
• Products: iPhone, iPad, Mac, iOS, iCloud, Apple TV, Apple Watch
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Apple – Priori t ies and Issues
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• Climate Change: Use of renewable energy sources and energy efficiency in products and facilities.
• Waste: Conserve precious resources
• Safety: Use of safer materials in products and processes.
• Supply Chain: Create fair employment and safe working conditions throughout supply chain
Exxon Mobi l – Taking on the wor ld ’s toughest energy chal lenges
• Global energy company
• Segments: Upstream, Downstream and Chemicals
• Revenue: $259.5B (2015)
• Market Cap: $356.5B (2015)
• Employees: 73,500 (2015)
• Subsidiaries: Esso, Imperial Oil, Superior Oil, Syncrude, Mobil 1
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Exxon Mobil – Priori t ies and Issues
• 39 identified materiality metrics
• Key Risks• Political: Protectionism of markets
• Economical: weak global economies – low oil prices
• Social: Rising public concerns about the safety of their products
• Technological: Increased innovation of alternative energy sources
• Environmental: Seasonal weather patterns, climate change and greenhouse gas restrictions
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• World’s largest food company
• Revenue: $92.1B USD (2015)
• Market Cap: $232.4 B USD (2015)
• Employees: 335,000 (2015)
• Strategy: Nutrition, Health and Wellness
• +2,000 Brands
Sales Contribution (2015)
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Nestlé – Good Food, Good Life
Nestlé – Priori t ies and Issues
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Five major issues relating to Nutrition,
Water, Regulation, and Environment
Industry Comparison
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Due Diligence
Protection/Assurance
Access to Markets/
New Build
Customer Attraction
& Retention
Increase “Eco”–Efficiencies
Human Rights
Media/NGO Pressures
Product Innovation
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INSIGHTS 1. Focus on Mitigation
Initiatives
2. Information Availability
and Transparency
3. Public Perception
towards SD
4. Differentiation vs.
Competition
RECOMMENDATIONS1. Focus on Adaptation
Initiatives
2. Implement Consistent
Approach for SD Metrics
3. Enhance Communication/
Awareness at POS
4. Translate Impact to Dollars
– sdEffect