Published on February 13, 2014
Marca Verde Unlocking the economic value of sustainability
Responsible and profitable
Strategic and operational
People Drivers Planet Drivers Planet Impact Profit Drivers Business Actions People Impact Profit Impact Economic Value Marca Verde ... and Value impact it, done it Value drivers What to do, doing
Profit Drivers Profit Drivers Marca Verde ... and Value impact Value drivers Did you do the right thing?
>>> Unilever’s Imprints
>>> Coke’s Live Positively
>>> Mars’ Sustainability
What are all of the most relevant “sustainability” issues for your business - from climate to biodiversity, carbon and water, health and community? How do you prioritise which ones matter most to your business? Where are your biggest risks? Where could you make the most positive impact? How does this relate to business value creation? How do you ensure that "the right thing" engages consumers, delivers differentiation, and profitable growth? Marca Verde ... and Value your priorities? Value drivers What are impact
1 Defining the business ecosystem 2 3 Mapping the impacts 4 Benchmark to best practices 6 Defining the value “baseline” Evaluating the value drivers 7 Developing scenarios 5 Evaluating the differences 8 9 Defining the value “potential” Evaluating possible actions 10 Developing value-based strategy Marca Verde ... and Value impact Value drivers The simple 10 step process
1 Defining the business The ecosystem Insights Lab 2 3 4 Engagement Mapping Benchmark to Mapping practices the impacts best Analysis Evaluation 6 Developing scenarios 5 Defining the value “baseline” Evaluating the The Design value drivers Studio 7Collaboration Possibilities Evaluating the Scenarios differences Evaluation 8 9 The Impact Defining the Evaluating Zonepossible value “potential” actions Commitment Blueprint 10 Developing Scorecard value-based Priorities strategy Marca Verde ... and Value impact Value drivers With 3 collaborative workshops
Marca Verde ... and Value impact the diagnostic Value drivers Get started with
Unsustainable business Economic audit Sustainable business Growth has stagnated and profitability is limited Growth is profitable and delivered year on year ... and driven by fast-growing, sustainable markets Little competitive differentiation, Mainly compete on price Strongly differentiated brands, products and services ... particularly based on social or environmental factors Processes are standardised and increasingly complex Processes are fast, efficient and streamlined ... with low social and environmental impacts Business model is conventional and unchanged over time Business model is innovative and market-shaping ... positively embracing social and environmental stakeholders Innovation is incremental and mainly on product features Innovating every part of business, disruptive and radical ... particularly driven by social and environmental agendas Employees are not engaged and managed hierarchically Employees have a passion, loyalty, and share in success ... inspired by a higher purpose, empowered, wanting to do more Suppliers and distributors are kept at a distance Partners in an extended enterprise designed for mutual success ... working together to make a positive wider impact on the world Market value is mediocre, with average shareholder returns Outperforms the market in terms of profitability and economic value ... where vision and values together ensure sustainable future profits
Unsustainable business Social audit Sustainable business Negative impact of business on local communities Supports local communities e.g. suppliers, employees Creates a more positive locality, socially and environmentally Sell products with little interest in how people use them Supports consumers in the use of products and services Provides education and support in achieving broader goals Sells products to people who can afford them, and not others Considers new products for less affluent audiences Seeks to relieve poverty in new and constructive ways Complies with the principles and laws of human rights Manages and treats people with fairness, respect and integrity Positively supports disadvantaged people, eg through fair trade Complies with the requirements for safety and security Goes beyond the basics in creating a safer, more secure business Reviews and redefines safety and security standards in all areas Complies with the requirements of corporate governance Encourages a more responsible approach to every part of business Becomes a genuinely open and trusted business Complies with the requirements of privacy and equality Treats every person, employee and consumer as a worthy individual Cares and does more for each person, to achieve their goals Complies with the requirements for health and wellbeing Cares about people, creating a positive working environment This is the happiest, healthiest and most enjoyable place to work
Unsustainable business Environmental audit Sustainable business Business uses significant amounts of natural raw materials Seeks to reduce and replenish natural resources consumed Positively seeks to find alternative types of material to use Business is largely dependent on carbon-based energy sources Increasingly using renewable sources of energy Pioneering ways to reduce energy and develop renewables Large transportation network for supply and distribution Reducing the energy and emissions of transport, eg using local suppliers Rethinking logistics and creating more sustainable supply chains Disposal of products and packaging is in the hands of customers Supports consumers in better ways to dispose of waste Innovates products and packaging to reuse or minimise waste Waste is an inevitable part of business, to be managed Reducing, reusing and recycling all types of waste Seeking to create “closed loop” systems to minimise waste Emissions and other pollution is an inevitable part of business Becoming a carbon neutral business, balancing outputs and inputs Becoming carbon zero business, and similarly eliminating other pollutants Not aware or concerned about the impact on wildlife Reducing the impact on wildlife and threat to species Making a positive contribution to encouraging biodiversity Buildings are not seen as an environmental issue Buildings are adapted to conserve energy and eco impacts Buildings are purpose built to highest environmental standards
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