Does your company really understand what millenials, the generation born after 1984, really expects from you? Do you capture the opportunities already from providing the right products and services to this important customer group? Key take aways: - Current students („millenials“) already have very different requirements in regards to sustainability – They are current consumers and as well as potential employees for companies – understanding and responding to these expectations secures future competitiveness. - The main requirement towards company sustainability efforts is to be transparent and to show integrity in all interactions. - New research confirms that sustainability should to be delivered through the core business – but getting there can be a thorny path. As part of the fall conference of the international student network sneep at the University of Kassel in central Germany, I had the pleasure to present the concept of sustainable value creation and its building blocks. The theme of the conference was centered around the question of ‘how to embed sustainability in the value chain’. Sneep is a pan-European student network focused on business ethics, which has more than 200 members and operates in 30 local chapter groups across Europe.

1. Delivering Economic and Societal Value shared.value.chain
Sustainability Inside-Out: Why the Core
Business is the Biggest Lever for Change
Michael D’heur
sneep Herbsttagung, Universität Kassel, 17 October 2014

2. Sustainability Inside-Out | sneep Herbsttagung, Universität Kassel, 17 October 2014 shared.value.chainPage 2
“Palm Oil”
My conclusion: “Sustainability is the
Missing Link in Value Chains”
Tom
Aninda
Siswee
Percy
My defining moment in Borneo in 2010....

3. Sustainability Inside-Out | sneep Herbsttagung, Universität Kassel, 17 October 2014 shared.value.chainPage 3
Volatility in the Market
Global Value Chains
Ecological Crisis
(Storms, Draughts, ...)
Profit versus
Purpose?
Constrained Resources
Financial Crisis
(Lehmann, Euro, ...)
Technology
Corporate Leaders Have to Deal with a ‘New Normal’
“How shall we cope and create value in
this environment ?”
Supply Chain ‘Scandals’
& Trust Issues

4. Sustainability Inside-Out | sneep Herbsttagung, Universität Kassel, 17 October 2014 shared.value.chainPage 4
Life is all About Making Choices...
Value Creation
Approach CORPORATE SOCIAL
RESPONSIBILITY AND VALUE
CHAIN MANAGEMENT
Approach of
Economy
Growth
Paradigm
„Perpetual“
Sole Focus on Economic
Value
Economic, Ecologic,
Societal Value
„Circular“„Linear“
„Resource depleting“ „Resource building“
„Two Worlds“ „Two sides of the
same coin“
„Sustainable“
CORPORATE SOCIAL
RESPONSIBILITY OR VALUE
CHAIN MANAGEMENT

5. Sustainability Inside-Out | sneep Herbsttagung, Universität Kassel, 17 October 2014 shared.value.chainPage 5
A Sustainability Label Does Not Always Tell the Truth...

6. Sustainability Inside-Out | sneep Herbsttagung, Universität Kassel, 17 October 2014 shared.value.chainPage 6
...So it is Important to Go Beyond the Sustainability Label

7. Sustainability Inside-Out | sneep Herbsttagung, Universität Kassel, 17 October 2014 shared.value.chainPage 7
Building blocks
2nd tier
Suppliers
1st tier
Suppliers
1st tier
Customers
2nd tier
Customers
SOURCE MAKE DELIVER
PLAN
RETURN
Value Creation Strategy
(Product, Value Chain, Communication)
Enterprise Architecture
(Organisation, Reporting,
Systems)
Stakeholder
Collaboration
Sustainable
Business
Planning
Supplier &
Partner Networks
Sustainable
Cost Reduction
© shared.value.chain
HR / Talent
Development
Philantrophic
Engagement
Financial
Controlling
Community
Development
Cradle-to-CradleCo-Creation
Sustainable Operations
Sustainable Products
Sustainability Becomes Real When it is Embedded in the
Core Business, ie. in Products and Supply Chains
A Companies Strategy Is Manifested in the Value
Chain - It is the Biggest Lever for Sustainability

8. Sustainability Inside-Out | sneep Herbsttagung, Universität Kassel, 17 October 2014 shared.value.chainPage 8
A new Momentum is Building Around Sustainable Value
Creation - It is Time to get Started......
Sample Companies
That Lead the Way
Visionary
Leaders
Innovation to
create sustainable
products, supply
chains and
solutions
Customers
demanding
sustainable
products
New Cross-
Sector
Partnerships
New
Legislation

9. Sustainability Inside-Out | sneep Herbsttagung, Universität Kassel, 17 October 2014 shared.value.chainPage 9
We Need to Give Sustainability the Meaning it Deserves
SEE SUSTAINABILITY
AS A CHANCE
Sustainability is an opportunity for
companies for better products and
tapping into new markets
TAKE ACTION AND
DELIVER RESULTS
Talking about Sustainability is
great, but taking action (even in
small steps) is better
COLLABORATE TO
DRIVE SYSTEMIC
CHANGE
To solve the challenges ahead,
new ways of cross-sector
collaboration are required
STOP CHASING
GROWTH AS WE
KNOW IT
To be ‚less bad‘ is not enough, as
we are only delaying the problems
associated with the current
economic system. Stop chasing
the dream of ‚perpetual‘ growth

10. Delivering Economic and Societal Value shared.value.chain
Workshop: Delivering Sustainability through the
Core Business - Expectations & Opportunities
Michael D’heur
Sneep Herbsttagung, Universität Kassel, 17 October 2014

11. Sustainability Inside-Out | sneep Herbsttagung, Universität Kassel, 17 October 2014 shared.value.chainPage 11
Please answer the following question...
If you would manage a
COMPANY
From your personal
perspective as CUSTOMER
“What are the biggest expectations, challenges and
opportunities of sustainable value creation”?
Perspective 1 Perspective 2

12. Sustainability Inside-Out | sneep Herbsttagung, Universität Kassel, 17 October 2014 shared.value.chainPage 12
Students Believe That There are Many Opportunities and
Expectations of Sustainable Value Chains
From a CUSTOMER point of view From a COMPANY point of view
Customer Opportunities
1. To be more happy with less products
2. Financial advantages, due to longer
durability of products
3. To know that the purchased product
does no harm
Customer Expectations
1. Transparency is the most important
expectations towards companies, that
build sustainable products and operate
sustainable value chains
2. Products shall be made 100% of
sustainable components and products
need to appeal to emotional values
3. The sustainability claims of companies
shall be audited by an independent
party
Company Opportunities
1. Increased company credibility and
customer trust
2. Increase company reputation/branding
3. Increased internal satisfaction and
motivation based on honest, ethical and
authentic management practices
Company Expectations
1. Ability to create sustainable products
with an appropriate cost position
2. There needs to be real demand for
sustainable products and customers
need to be able to buy the products
3. The contribution of sustainable
products and supply chains need to be
measurable
WORKSHOP OUTPUT

13. Sustainability Inside-Out | sneep Herbsttagung, Universität Kassel, 17 October 2014 shared.value.chainPage 13
Thank you for your attention
Please join the conversation...
Springer Publishers, German Language,
Publishing Date October 2013
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Capital
Management AG
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Springer Publishers, English Language,
Publishing Date December 2014
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info@sharedvaluechain.com