Environmental Improvement, Sustainable Strategy:

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• Environmental Improvement, Sustainable
  Strategy
• Business Benefits

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Background

• Human activity is causing unprecedented changes
  in the world - businesses have a role in
  preventing irreparable damage
• National / International law and stakeholder
  choice pressurise businesses into action
• The aim is to improve business impact, leading
  to sustainable strategies
• This can in fact lead to direct business benefits

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• Business Benefits

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Improved Financial Performance
Business Benefit 1

• Increased efficiency
• Energy savings
• Waste reduction
• Reduced expenses
• Land-fill Tax
• Climate Change Levy
• Carbon Reduction Commitment

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Improved Financial Performance
Business Benefit 1

• Improving environmental performance can lead to
  substantial financial improvements
• British manufacturing would save 2-3 billion
  each year by adopting best practice waste
  minimisation techniques (DEFRA, 2003)
• The carbon sector grew by 40 in 2007 (Carbon
  Trust, 2007)

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Attract More Customers
Business Benefit 2

• A professional environmental performance will
  heighten your reputation, showing that your
  organisation is organised, forward-thinking,
  professional, and competent
• Customers are attracted to all of these assets
  by improving your environmental performance, you
  are likely to improve your customer base

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Widen Your Supply Chain
Business Benefit 3

• Suppliers (and companies seeking suppliers) often
  consider environmental performance when choosing
  the right company
• By having the right environmental credentials,
  you widen your supply chain
• For example, companies working towards ISO14001
  need to use suppliers with a good environmental
  policy and performance
• This is the case for many large national and
  international organisations

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Attract Better Investment
Business Benefit 4

• 89 of large businesses report on sustainability
  (DEFRA, 2006)
• Sustainability is an important aspect in
  investment decisions

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Attract Better Investment
Business Benefit 4

• The Carbon Disclosure Project advise investors on
  companies environmental performance. They
  command over 50 trillion in investments and make
  environmental performance a prerequisite to any
  investment
• "Corporate social responsibility is a hard-edged
  business decision. Not because it is a nice thing
  to do or because people are forcing us to do
  it... because it is good for our business"
• Niall Fitzerald, Former CEO, Unilever

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Improve Risk Management
Business Benefit 5

• We are now in a rapidly changing legislative
  climate
• The Climate Change Bill will exacerbate this
• By acting, you reduce the risk of
• Penalties and fines
• Prosecution
• Damage to your brand

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Strengthen and Protect your Brand
Business Benefit 6

• Substantial finance is invested into successful
  brands, but how much is spent on their
  protection?
• 74 of the British population say more
  information on a company's social and ethical
  behaviour would influence their purchasing
  decisions. MORI CSR Study, 2003.
• 72 of adults prefer to buy products and services
  from more expensive, but ethically sound
  businesses. LRN, 2005

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Strengthen and Protect your Brand
Business Benefit 6

• Fairtrade sales in the UK (1990-2008) have now
  reached half a billion pounds (Fairtrade, 2008)
• The Body Shop marketing socially responsible
  produce valued at 652 million in 2006 (IBT,
  2006)
• Behaving unethically is bad for business
• Sir Bob Worcester

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Strengthen and Protect your Brand
Business Benefit 6

• Ethical boycosts cost the big brands 2.6 billion
  in 2003 (Co-operative, 2003).
• Numerous 3rd party organisations examine
  environmental performance and publicise their
  findings
• The Yale Environmental Performance Measurement
  Project
• The Dow Jones Sustainability Index

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Attract High-Quality Employees
Business Benefit 7

• With tough economic conditions and worldwide
  competition you need the most innovative and
  competitive staff
• 60 people want to work for a company whose
  values are consistent with their own (GCM, 2003)

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Make a Positive Impact
Business Benefit 8

• The world is a finite resource
• Consumers and investors now seek strategic
  sustainable thinking
• Businesses should now be given the tools to act
• Consep Consulting offer a professional and
  flexible solution

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Examples of Success

• By introducing water, waste and emissions
  reduction targets, Baxter International was able
  to save over 6m (EA, 2004)
• The installation of low-cost water saving devices
  allowed Booker Belmont Wholesale Ltd to identify
  and achieve an annual saving of over 100k a year
  (EA, 2004)

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Examples of Success

• Airbus A380 burns 13 less fuel than Boeing 747
  (Peters et al. 2005)
• The Volkswagen Blue motion can Drive from London
  to Genever on one tank
• Hitachi
• Woo LCD Television power usage reduced by 40
• R-X6000 fridge power usage reduced by 20

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Examples of Success

• Companies in the Corporate Responsibility Index
  outperformed the FTSE 350 on total shareholder
  return by 3-8 per year (BIC, 2008)
• There is a strategically significant correlation
  between corporate sustainability and financial
  performance

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Benefits of Better Reporting

• By communicating outstanding environmental
  performance and sustainable strategy, you will
  stand out from your competition
• Consep Consulting can help your organisation
  produce the results and communicate your progress

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Contact Us

• Thank you. Please contact us for more information
• Consep Consulting
• Consepconsulting.com
• contact_at_consepconsulting.com
• 44 (0) 7811719396

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References

• DEFRA, 2003. Changing Patterns UK Government
  Framework for Sustainable Consumption and
  Production, UK Departments for Trade and Industry
  (DTI) and Environment, Food and Rural Affairs
  (DEFRA). Available at www.defra.gov.uk/environmen
  t/business/scp/pdf/ changing-patterns.pdf
• Carbon Trust, 2008. See www.carbontrust.co.uk
• DEFRA, 2006. Environmental Key Performance
  Indicators. Reporting Guidelines for UK Business.
  Available at http//www.defra.gov.uk/environment/
  business/envrp/pdf/envkpi-guidelines.pdf
• Dawkins and Lewis, 2003. MORI CSR Study. CSR in
  Stakeholder Expectations And Their Implication
  for Company Strategy. Journal of Business Ethics.
  442-3185-193.
• LRN, 2005. A Company's Ethics Do Concern Shoppers
  (or So They Say). NY Times, 2006. Available at
  http//www.nytimes.com/2006/01/29/business/yourmon
  ey/29count.html
• Fairtrade, 2008. Fairtrade sales reach half a
  billion pounds. Available from
  http//www.fairtrade.org.uk/press_office/press_rel
  eases_and_statements/feb_2008/fairtrade_fortnight_
  launch.aspx
• International business Times, 2006. 652 million
  Takeover on Body Shop by L'Oreal. Available from
  http//ibtimes.co.uk/articles/20060318/l-039-oreal
  -body-shop.htm
• Co-operative, 2003. Summary available at
  http//www.co-operativebank.co.uk/partnership2003/
  ceos.html
• Global Campus Monitor / Environics, 2003. A
  survey of undergraduates across the 20 largest
  economies in the world.
• Environment Agency, 2004. Case study from
  Corporate Environmental Governance,
• Peeters, Middel and Hoolhorst, 2005. Fuel
  efficiency of commercial aircraft
• An overview of historical and future trends.
  Available from http//www.transportenvironment.or
  g/Publications/prep_hand_out/lid398
• IAB Creative Showcase First Runner-Up in August
  for Volkswagen BlueMotion London to Geneva. In
  one take, on one tank. Available from
  http//www.volkswagen.co.uk/bluemotion/
• Hitachi product information, 2008. Available
  from http//www.hitachi.com/environment/activitie
  s/s_ecoproducts.html
• Business in the Community, 2008. The Value of
  Corporate Governance The positive return of
  responsible business.

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Further Reading

• The following links provide some useful
  background information on sustainability,
  environmental reporting, business development,
  and consulting
• http//www.telegraph.co.uk/finance/2809088/Why-an-
  ethical-business-is-more-likely-to-produce-a-succe
  ss-story.html
• http//www.sustainability-index.com/
• http//www.yale.edu/esi/
• http//news.bbc.co.uk/1/hi/uk/4111310.stm
• www.businesslink.gov.uk
• http//www.carbontrust.co.uk/energy/startsaving/to
  p_tips.htm