1. Capgemini Consulting's CEO Study 2008
”Mastering the Triple Bottom Line”
Presentation of Key findings
24.02.2009 v 0.9

2. The study is based on a structured approach and gives valuable insight on
sustainability from a strategic perspective
Background
Our objective is to generate insight on how Norwegian companies approach sustainability
from a strategic perspective
The main focus is how to manage expectations from both shareholders and society to
deliver financial, environmental and social performance
Definitions
Sustainability refers to how enterprises are striving to reach business objectives while
taking responsibility and protecting society at large (also referred to as Corporate Social
Responsibility)
The Triple Bottom Line captures the essence of sustainability and refers to the balance in
delivering results across three dimensions: financial, social and environmental
Methodology
The study is based on interviews with CEOs and Top Management of 55 Norwegian
enterprises
8 sectors are represented: Manufacturing, Financial services, Retail, Distribution, Oil and
Gas services, Energy, IT/Telecom and Property
This is the largest study of its kind that has ever been conducted in Norway.
This is the largest study of its kind that has ever been conducted in Norway.
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3. Capgemini has conducted an in-depth study of sustainability on the basis of
interviews with top management in a wide range of Norwegian companies
Key findings:
Sustainability has become a top priority
Non-disclosure for CEOs
Sustainability represents unprecedented
business opportunities
Environmental and social performance
emerge as a major source of competitive
advantage
Mastering the Triple Bottom Line
requires thorough and strategically
founded execution
Sustainability leaders have the potential
to change the rules of the game
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4. Key finding 1
Sustainability has become a top priority for CEOs
“We experience a significant
increase in demands on
sustainability from our customers,
especially within oil and gas”
3
- CEO, large Manufacturing company 3

5. The pressure on CEOs to deliver environmental and social results has
increased dramatically in recent years
70% of CEOs experience significant increase
Customer demands, cost savings and
in demands to deliver on environmental
compliance drive sustainability changes
and social aspects
To which extent do you experience increased demands to What are the commercial drivers behind changes in respect to
deliver results on environmental, ethical and other social how you deal with sustainability?
aspects in addition to economics?
Sustainability has raised to become a top priority for CEOs
Sustainability has raised to become a top priority for CEOs
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6. Despite industrial differences, almost all CEOs believe that sustainability will
have a significant impact on their business within the next 10 years
Sustainability demands vary across sectors
“To which extent do you experience increased demands to deliver results on
environmental, ethical and other social aspects in addition to economics?”
Oil & Gas Services
Energy
Property
Manufacturing
Distribution
Retail
FSI
Telecom & IT
Total average
1 2 3 4 5
Very
Small Medium Large Very large
small
There is a lucrative opportunity to capitalise by taking a leading position on sustainability in Norway.
There is a lucrative opportunity to capitalise by taking a leading position on sustainability in Norway.
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7. Although some sustainability issues are important in all sectors, industrial
sustainability challenges are distinctively different across sectors
Energy : Distribution :
Climate change Route planning
Increasing energy Energy use operations
demand Emissions and waste to
Clean energy air and sea
Environmental impact of Local sourcing
operations (emissions Disposal of ships,
and waste) vehicles etc
Manufacturing : Oil & Gas Services :
Energy use and efficiency HSE requirements from
upstream companies
Waste and hazardous
materials Emissions to air and sea
Water usage Supplier management
Recycling and packaging Efficient resource
management
Scarcity of raw materials
Sustainability issues listed across sectors :
Stricter rules and
Business Ethics and Labour standards in Good citizenship in local
regulations for
barriers of corruption developing countries community
compliance
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8. Although some sustainability issues are important in all sectors, industrial
sustainability challenges are distinctively different across sectors
Property : IT & Telecom :
Energy use in buildings Environmental impact of
Waste from household Telecom infrastructure
and construction Short lifetime of
Use of hazardous equipment
materials and chemicals Owner rights and ”pirate
distribution”
Internet fraud
Retail : Financial Services :
Raise of the LOHAS Transparency
segment
Ethics in selling complex
Energy efficiency in store
design, transportation and financial products
logistics Green and sustainable
Recycling and investments
environmental packaging
Remuneration in capital
Waste and hazardous
materials market positions
Sustainability issues listed across sectors :
Work place issues,
Emission and waste Diversity and equal Supplier sustainability
Health Safety and
control opportunities management
Environment
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9. Key finding 2
Sustainability represents major
business opportunities across most sectors
“This can be the oil-adventure of
Norwegian generations to come ”
- CEO, Norwegian Energy company
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10. 80% of CEOs believe that sustainability create major market opportunities and
that it will have a considerable impact on their business
To which extent does an increased focus on sustainability create
market opportunities for your business? ”It’s completely obvious that it will lead to
market opportunities in the energy
sector”
CEO, Energy company
“These trends [on
sustainability] lead to
enormous opportunities!”
CEO, Oil & Gas services
”Certainly over time it will provide [market
opportunities], but we don’t use it
offensively today, in fear of bad publicity”
CEO, Financial Service Firm
“Sustainability provide opportunities
because you are forced to think
differently”
CEO, Manufacturer
There are major differences between the sectors, but business opportunities emerge across all of them.
There are major differences between the sectors, but business opportunities emerge across all of them.
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11. How closely sustainability is to the business core has a large influence to
which extent sustainability represent market opportunities
Sustainability driven business opportunities vary across sectors
To which extent do an increased focus on sustainability create market opportunities
for your business?
Energy
Property
Telecom & IT
Retail
Distribution
Oil & Gas Services
Manufacturing
FSI
Total average
1 2 3 4 5
There are major differences among sectors, but business opportunities emerge across all of them.
There are major differences among sectors, but business opportunities emerge across all of them.

12. By mapping initiatives discussed with CEOs in the study, market opportunities
can be divided into five broad and distinct categories
Energy Water
Exploration and utilisation Rain forest
1
of scarce resources Species
Minerals Oil
Wind, Solar,
CCS Waste
Need for cleaner Biofuel
2 management
technologies Clean SOx/NOx
cleaning Recycling
fuel
Eco Health Sustainability
The raise of the
3 features
LOHAS segment Green Carbon
Fairtrade materials neutrality
Micro- Medicine
Enabling the credits supply Low-cost
4 solutions
unprivileged Sanitary
Reuse solutions Water
Competitive
Differentiation Sustainability
Exploring sustainability advantage
5 premiums
leadership options Sustainability Talent Compliance
innovation acquisition leadership

13. In coming years consumers will strongly consider sustainability issues in their
buying decisions, but …
Most important factors of sustainability Willingness to pay for sustainability
recognised by consumers is limited, but growing …
Most important sustainability issues
in buying decisions
100
87 85 84
75
% of respondents
50
25
0
Energy and water Waste reduction Sustainable
usage and control manufacturing
features
… most consumers are only willing to pay a small price difference for sustainability features !!
… most consumers are only willing to pay a small price difference for sustainability features

14. By introducing three dimensions to the business context, new competitive
space driven by sustainability emerge across all sectors
Energy : Distribution :
Renewable energy
Reverse logistics
Clean technologies
Disposal of ships and
New and green energy vehicles
Green certificates Environmental
Trading emission quotas technologies for NOX,
Smart Metering options SOX, BWT, CO2 etc
Manufacturing : Oil & Gas Services :
Carbon capture and
Cleaner technologies in storage
value chain
Increasing recovery factor
New products from
Decommissioning
recyclable materials
offshore platforms
Green, Eco, Health and
Cleaner technologies to
Fairtrade products
reduce emissions / waste
Business opportunities across sectors :
Energy efficient and Strategic differentiation Cleaner technologies in Local sourcing
energy saving solutions and strategic innovation operations opportunities
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15. By introducing three dimensions to the business context, new competitive
space driven by sustainability emerge across all sectors
Property : IT & Telecom :
Green IT
Energy efficient buildings Technological solutions
Green materials addressing energy saving
Energy saving solutions Digital communication to
Waste handling systems replace/reduce travel
Environmental certificates Using IT to educate
unprivileged
Retail : Financial Services :
Green, Eco, Health and Sustainable investment
Fairtrade products
portfolios
Emisson quotas to offer
carbon neutral products Green funds
Using recyclable materials Microcredits
Environmental product Carbon indexes
packaging
Emission trading
Business opportunities across sectors :
Sustainable product
Carbon neutral products Sustainable sourcing Product innovation
attributes
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16. Key finding 3
Environmental and social performance emerge
as a major source of competitive advantage
“Sustainability is the single
biggest opportunity in 21st
century, and will be the next
source of competitive
advantage”
- H.Lee Scott, CEO Wal Mart
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17. CEOs believe social and environmental initiatives can be leveraged to create
competitive advantage
According to CEOs; brand, risk and talent Reduced market access and increased costs
are the most promising strategic levers are seen as the largest potential pitfalls
In which way can social, ethical and environmental initiatives In which way can social, ethical and environmental initiatives
also enhance your companies competitiveness? also damage your companies competitiveness?
Small Medium Very high
Sustainability performance may also represent competitive disadvantage – under certain circumstances the
Sustainability performance may also represent competitive disadvantage – under certain circumstances the
result could be denied market access or a non-competitive cost structure.
result could be denied market access or a non-competitive cost structure.

18. CEOs believe there are limited contradictions between financial performance
and sustainability, but we believe trade-offs will emerge as ambitions increase
CEOs do not see a substantial
However, we believe a high ambition
contradiction between financial performance
level will create significant trade-offs
and sustainability
To what degree is it an area of conflict between providing the Meeting society’s basic expectations on
owners’ maximum rate of return as well as taking environment,
society and ethics into consideration?
sustainability is a necessity to operate in the
market place …
Energy
1 2 3 4 5
Retail … but a robust correlation between sustainability
1 2 3 4 5 performance and financial performance has
Manufacturing not been established.
1 2 3 4 5
FSI
1 2 3 4 5
We believe significant trade-offs will emerge as
Distribution companies increase their level of ambition on
1 2 3 4 5 the environmental and social bottom lines!
Property
1 2 3 4 5
Oil & gas If the right initiatives are taken, there is a
services 1
Small
2 3
Medium
4 5
Large
significant potential for positive returns - also
total average ranking of 1.9
on the financial bottom line.
Addressing sustainability will always involve trade-offs, but with the right prioritisation significant returns
Addressing sustainability will always involve trade-offs, but with the right prioritisation significant returns
can be leveraged – also on the financial bottom line.
can be leveraged – also on the financial bottom line.
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19. Sustainability leaders have the
potential to change the rules of the game

20. All represented industries report from “moderate” to “very high on
sustainability driving an increase in demands and new market opportunities
Very High
Oil & Gas
Very High
Services
Oil & Gas
Services
Increased Sustainability Demands
Increased Sustainability Demands
Manu- Property Energy
facturing
High
Distribution Retail
Property Energy
Moderate
Financial Manufacturing
High
Services IT/
Telecom
Distribution Retail
Limited
Financial
Moderate
Services IT/
Telecom
Very Low
Very Low Limited Moderate High Very High Moderate High Very High
Sustainability Driven Market Opportunities Sustainability Driven Market Opportunities
Even though the tendency is that all industries are strongly affected by this development, there are clear
Even though the tendency is that all industries are strongly affected by this development, there are clear
differences on strategic impact sustainability impose on the represented industrial sectors.
differences on strategic impact sustainability impose on the represented industrial sectors.
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21. Differences in demands and opportunities create various strategic
playgrounds for different industries
Strategic Playgrounds Comments
Potential for game changing strategies Where market opportunities is seen as ”very high” and demands
to deliver social and environmental performance are ”high”,
Energy sustainability becomes strongly linked to business core, and
hence a strategic parameter for creating business performance.
Attractive positions for sustainability leadership Where the degree of sustainability driven opportunities and
increasing demands are seen as ”high”, sustainability is not as
Property Distribution Retail directly linked to core business, but there are significant
sustainability potential and risks related to underperformance.
Enhance value chain performance and Moderate business opportunities, but high increase in
increase standards to put competition on defence demands indicate strong regulatory regimes related to
Manufacturing
Oil & Gas production, manufacturing and operating environment. Being
services
sustainable is business critical, affecting licence to operate.
Protect reputation and Sectors rating increase in demands and market opportunities
increase standards to put competition on defence as “moderate” should still assess how sustainability impacts
competitive advantage. Ignoring sustainability represents
Financial
services
IT/Telecom significant risks, while mastering it protects reputation and can
create new market opportunities in niche markets.
Despite differences, we believe sustainability can offer promising benefits within all industry sectors.
Despite differences, we believe sustainability can offer promising benefits within all industry sectors.

22. We can categorise the sustainability leadership according to two dimensions;
Market Driven Leadership and Compliance Driven Leadership
Sustainability Leadership Comments
Retail
Market Driven Leadership:
• Developing new products and achieving
Energy
market differentiation
Property
• Changing the rules of the game
Market Driven Leadership
Distribution
Manufacturing Compliance Driven Leadership
IT/Telecom
• The potential of outperforming competitors
by driving the sustainability practices forward
Oil & Gas within regulated industries
services
Financial
services
• Increasing the gap and thus competitive
advantage
Compliance Driven Leadership

23. The rules of the game are changing, and mastering the Triple Bottom Line is
emerging as a prerequisite for success
CEOs in our study confirm our belief that
sustainability will have a profound impact Four Generic Sustainability Positions
on business- and operating models in Expected Impact on Financial Performance
the future
Mastering the dynamics of the Triple
Superior
Bottom Line is about playing a new Returns
1
Sustainability
game where the importance of leadership
environmental and social performance
2
increases dramatically
Performance
Successful
Financial
adaptor
In order to balance all three dimensions,
businesses must carefully consider risks Mastering the
3
and opportunities within their current Triple Bottom Line
4 Over
business context and operating model Non-
investoing
compliant
The companies that excel in mastering
Negative
the Triple Bottom Line, enabling strategic Returns
integration of sustainability issues with
core capabilities, will also prevail in the Environmental and Social Performance
market place
Companies that are able to grasp the system within which they operate, and the limits and requirements the
Companies that are able to grasp the system within which they operate, and the limits and requirements the
system imposes, will be the ones to flourish in the future business environment (John Ehrenfeldt ––Sustainability by design).
system imposes, will be the ones to flourish in the future business environment (John Ehrenfeldt Sustainability by design).
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24. In view of the survey findings and the current economic climate, we still see
long term opportunities in taking a clear position on sustainability
Key findings:
Sustainability Position vs Economic Slowdown?
Sustainability has become a top
priority for CEOs
Taking a leading Declining markets
Sustainability represents
position on and challenges related
unprecedented business sustainability to cost structure
opportunities
Environmental and social • Reducing costs • Prices on Struggling to maintain the strategic
performance emerge as a major • Increasing energy and raw
demands materials are focus and priorities on long term
source of competitive advantage growth areas within existing core
• Core element of decreasing
strategy • Reduced will business
• Compliance and ability to
Mastering the Triple Bottom Line issues still vital pay a price Struggling to reduce existing cost base
• Securing market premium and turning fixed costs into variable
requires thorough and access • Reduced costs, without deteriorating cash flow
strategically founded execution • Access to funding from core areas – reducing the relative
resources competitive advantage
Sustainability leaders have the What companies will be best positioned to outperform
potential to change the rules of the competition as soon the market rebound from slowdown and
game decline – realising fast and profitable growth…?
99 of the most sustainable companies, on the Dow Jones Sustainability Index, has outperformed its peers
99 of the most sustainable companies, on the Dow Jones Sustainability Index, has outperformed its peers
by 15 % during the last six months of economic downturn.
by 15 % during the last six months of economic downturn.
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25. Need for business response
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26. We find that most of our clients struggle to respond strategically on the new
business climate driven by sustainability
Identified business needs
The complex landscape of sustainability issues Identify sustainability impact of
business climate
Environmental responsibility Social responsibility
Eco-efficiency Transportation Use of human resources
Community
Waste
Energy use
Use of dangerous
Workplace health
& safety
development Understand current social and
Inclusive society
control Water use materials
Product Access Human rights
environmental performance
Recycling & product take Education
back stewardship Culture
Equal
Emissions opportunities Diversity
Climate Economic responsibility
change Value creation Profitability Minorities Explore sustainability
Efficiency Corruption and Quality goods leadership options
bribery Innovations
Job creation Marketing &
advertising Responsible
Supply chain standards accounting
Sustainable
Review business strategy and
Pricing growth formulate TBL ambitions
Eco-luxury
Prioritise TBL initiatives
As corporations now also have to be competitive in the environmental and social dimensions – the basis of
As corporations now also have to be competitive in the environmental and social dimensions – the basis of
competition is changing and the role of executives is getting more complex.
competition is changing and the role of executives is getting more complex.

27. On the highest level, the strategy formulation contain the same steps, but the
analyses and outcome are distinctively different
The TBL perspective
Society Environment “CSR can be much more than just a cost, constraint,
or charitable deed. Approached strategically, it
generates opportunity, innovation, and competitive
advantage for corporations—while solving pressing
Economy social problems”- M. Porter & R. Kramer 2007
Capgemini Consulting’s strategy development framework
Analysis of Identification and
Define
internal assessment of
assumptions and
capabilities and risks and
strategic context
industry context opportunities
Monitor & review
progress
Implementation Strategy
Implementation
planning development
Analysis of market conditions, competitive arenas and the organisations potential for developing
Analysis of market conditions, competitive arenas and the organisations potential for developing
competitive advantage provide the basis for the strategic direction.
competitive advantage provide the basis for the strategic direction.
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28. Most strategic sustainability options fall within the categories of five generic
strategies
Five generic strategies Effort and impact
Locating the core
– Positioning your Core Business in the 5
industry value system 5
Industry impact
4
Developing the core
2 3
– Differentiating the Core Business
2
Elaborating the Core Business 1
– Growing the core; making the core 1 Strategic re - orientation
business larger
The generic strategies can be
Extending the Core Business categorised based on potential
– Extending the corporate strategic 3 to change the competitive
scope rules in the industry and
change and effort required to
Reconceiving the Core Business implement the strategy
– Consolidate and rationalise the 4
business
We believe that within most sectors there will be niche markets where differentiated sustainability
We believe that within most sectors there will be niche markets where differentiated sustainability
strategies can have large impact or even game changing potential.
strategies can have large impact or even game changing potential.
Sources: H. Mintzberg

29. Capgemini service offering is adapted to different needs and maturity levels,
but all offerings have a strategic perspective on sustainability
Key findings:
Sustainability has become a top priority Four typical project approaches
for CEOs
Sustainability represents unprecedented
Potential for value creation
business opportunities
Full scale
Environmental and social performance
emerge as a major source of competitive
strategy-
advantage Strategy process
TBL review
opportunity
TBL health scan
Mastering the Triple Bottom Line check
requires thorough and strategically
founded execution Project scope
Sustainability leaders have the potential
to change the rules of the game
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30. Contact:
Anders Rygh
Capgemini Consulting
Principal |
Head of Business Strategy and M&A
Tel: +47 24 12 80 00
Mobil: +47 95 11 81 33
Anders.rygh@capgemini.com
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