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Sustainability and Innovation Slides
1. The Center for a Sustainable Future
would like to offer a special thanks
to our underwriters!!!
2. Sustainability and Innovation:
The Natural Step to Prosperity
Presented by the IU South Bend Center for a Sustainable Future
Friday, November 4, 2011
9. The Greatest Challenge
Arctic sea ice drops to its
second lowest level on
record
Scientists call event “tipping point"
in global warming.
-South Bend Tribune (08/28/08)
Is Also Our Greatest Opportunity!!!
12. 10 Mega-Issues on the Horizon
1. Energy
2. Water
3. Climate
4. Food
5. Pollution/Disease
6. Poverty
7. Racial/Ethnic Tensions
8. Citizen/Investor Accountability
9. National Security
10. Erosion of Trust
13. What got us here?
Scientific and Industrial
Revolutions
14. The Next Step
A SUSTAINABILITY REVOLUTION
Driven by the same capability
for INNOVATION that fueled the
scientific and industrial
revolutions, but this time
informed by the lessons of
nature and in harmony with the
conditions of sustainability.
15. What is Sustainability?
Meeting the needs of
the present without
compromising the
ability of future
generations to meet
their own needs
-United Nations World Commission on
Development and Environment (1987)
19. The Natural Step: what is it?
• International NGO
• Scientific approach
• Holistic, generic
framework
• Strategic advice &
education
• Leadership and role
models
• Innovative tools and
services
• Networks & partnerships
20. Entrepreneur and Author Paul Hawken
“The whole world has dreamt about a solid definition of
sustainability that would allow systematic step-by-step
planning. When the definition arrived, delivered by The
Natural Step, it was remarkable to see how simple it was.
Why hadn’t anybody thought about it before?”
Paul Hawken, Author. The Ecology of Commerce, Natural
Capitalism, and Blessed Unrest
21. TNS Core Purpose
To develop a genuine commitment to,
and competence in,
sustainable development
throughout society.
22. The Natural Step: Key Concepts
The Funnel
Systems Thinking
1 2
3 4 Planning in
System Conditions ABCD & Backcasting Complex Systems
24. Building Block of Life
What makes it possible for this cell to emerge
and to sustain itself?
25. Scientific Foundations
Basic Laws of Physics
1st and 2nd Laws of
Thermodynamics
Law of Conservation of Matter
26. Scientific Foundations
Evolutionary Biology
4.5 billion years – Swirling stew
3.5 billion years – First plant cell
1.5 billion years – First green plants
0.7- 1 billion – First animal cells
2 million years – Human ancestors
Evolution
28. Earth is like a terrarium
•Closed system
•Sun pays the
bills
29. The System
•Like the terrarium, Earth
There is no away
is a closed system with
respect to matter
•The system has a natural
tendency towards running
down (Entropy)
•The sun provides the
energy to keep the system
from running down and is
the source of all life The sun pays the bills
through Photosynthesis
30. Metaphor of the funnel
Declining
resources and ecosystem
services
Through
innovation, creativity &
the unlimited potential for
change we can open the
walls of the funnel
Increasing
demand for resources and
ecosystem services
31. 4 System Conditions of a
Sustainable Society
In a sustainable society, nature is not subject
to systematically increasing...
...concentrations of substances
extracted from the Earth’s crust,
...concentrations of substances
produced by society,
...degradation by physical means,
and, in that society...
...people are not subject to conditions
that systematically undermine their
capacity to meet their needs.
32. Operating Manual for the Planet
Objective 1
1. Reduce and eventually eliminate our contributions to the
systematic accumulation of materials taken from the earth’s
crust.
Inefficient Use Efficient Use
Dissipative Use Tight Technical Cycles
Scarce metals Abundant metals
Fossil Fuels Renewables
33. Operating Manual for the Planet
Objective 2
2. Reduce and eventually
eliminate our contribution
to the systematic
accumulation of substances
produced by society.
Inefficient use Efficient use
Persistent and Abundant &
Unnatural breakdown easily
Dissipative use Tight Technical Cycles
34. Operating Manual for the Planet
Objective 3
3. Reduce and eventually eliminate our contributions to the ongoing
physical degradation of nature.
Inefficient use of Efficient use of
resources and land resources and land
Resources from
Resources from well-
poorly managed
managed ecosystems
ecosystems
35. Operating Manual for the Planet
Objective 4
4. Reduce and eventually eliminate our contributions to conditions
that systematically undermine people’s abilities to meet their own
needs.
Unsafe and unhealthy Safe and healthy
production and use production and use
Violations of human Respect for human
rights rights
Economic barriers Sufficient resources
for livelihood
36. Operating Manual for the Planet
1. Reduce/eliminate our contributions to the systematic
accumulation of materials taken from the earth’s crust.
2. Reduce/eliminate our contribution to the systematic
accumulation of substances produced by society.
3. Reduce/eliminate our contributions to the ongoing
physical degradation of nature.
4. Reduce/eliminate our contributions to conditions that
systematically undermine people’s abilities to meet
their own needs.
37. Operating Manual Quiz
Read through the list of sample initiatives that an organization may undertake and circle the System Conditions of
Sustainability that the initiative most closely relates to. When you are done, share and compare your answers
with your small group. Note any questions or discrepancies you may find.
Initiative #1: When an organization openly and freely shares their sustainability learning and best practices, which
sustainability condition is primarily supported?
SC#1 (Earth’s crust) SC#2 (Society made) SC#3 (Degrade nature) SC#4 (Needs)
Initiative #2: When energy conservation is promoted in a town reliant on fossil fuels, which sustainability condition is
primarily supported?
SC#1 SC#2 SC#3 SC#4
Initiative #3: When a woodlot owner becomes FSC (Forest Stewardship Council) Certified, which sustainability
condition is primarily supported?
SC#1 SC#2 SC#3 SC#4
Initiative #4: When an organization introduces a green cleaning products program, which sustainability condition is
primarily supported?
SC#1 SC#2 SC#3 SC#4
38. Why should you care?
“Indiana Michigan Power announced
in late September that it is seeking a
rate increase of 9.5 percent for
commercial and industrial customers
along with a 22.7 percent increase on
Indiana residential customers.”
South Bend Tribune, October 31, 2011
41. Interface Carpet
Since 1994:
Cut greenhouse gas
emissions 82%
Cut fossil fuel use 60%
Cut waste 66%
Cut water use 75%
Invented and patented new
machines
Increase sales by 66%
Doubled earnings
Raised profit margins “If anyone can do it, then everyone can do it.”
-Ray Anderson
42. What’s in it for me and my
business or organization?
What does sustainability offer me and my business or organization?
• New Market Potential
• Competitive Differentiation
• Platform for Innovation
• Improved Public and Community Relations
• Reduced Energy Bills and Operating Costs
• Improved Employee Morale
• Increased Productivity and Reduced Employee Absenteeism
• Risk Avoidance (law suits, new environmental regulation and
taxes, and market shifts)
• Do well by doing good
• Be a hero to your children and grandchildren
43. Break
The Center for a Sustainable Future
would like to offer a special thanks to
our underwriters!!!
45. Strategies for Planning and
Implementation
“We started treating everyone and
training them up to be mini-
entrepreneurs in the company. I think
that’s what made the difference and
made the company grow. I credit my
army of entrepreneurs. In the
recession they know exactly what to
do. This year we’ll have a 26%
percent growth year. The leaps are
becoming larger... Part of that is that
our people are more owner-like than
employee-like.”
46. CREATE A SUSTAINABILITY ACTION PLAN
Identify a set of priorities for actions and innovations that put
the sustainability objectives into practice, evaluated on the basis
of the following questions:
1. Does the action/innovation step towards all four guiding
objectives of sustainability simultaneously?
2. Does the action/innovation create a flexible platform for
future steps, or does it lead to a blind alley?
3. Will the action/innovation give a good return on
investment, i.e., time and money.
49. Backcasting
Visioning
Future
Present 1. Begin with the end in mind
2. Move backwards from the vision to the present
3. Move step by step towards the vision
60. Largest wholesalers of organic
produce in PNW
3 facilities; Employ 140;
14 tractors, 16 trailers, 5
bobtails
11/7/2011 60
61. OGC Mission and Core Values
TO PROMOTE HEALTH THROUGH ORGANIC AGRICULTURE AS A LEADING
SUSTAINABLE ORGANIZATION
HEALTH INTEGRITY
Nurture the overall health of the Honestly represent the food we distribute and the
workplace, community, food services we provide building on our experience as
supply, soil and planet. growers, wholesalers, retailers and brokers.
PARTNERSHIPS SUSTAINABILITY
Maintain positive long-term relationships Embrace the challenge of creating a more
that are built on trust with people and sustainable business model that distributes
organizations across the spectrum of food organically grown food in accordance with the
production and consumption. We are all principles of “good, clean, and fair”.
interdependent.
11/7/2011 61
62. The Challenge Ahead
How do we achieve a sustainable food
production and distribution system?
How do we bring the ecological and social
principles that underlie our farming
practices into the entire supply chain?
11/7/2011 62
63. OGC + Natural Step
• 2005 Sustainability Summit with farmers and
customers
• Re-wrote mission statement
• Hired Sustainability Manager
• Company-wide training in the Natural Step
• Formed cross-functional Steering Committee
to determine goals and continual
improvement process (A-B-D-C Backcasting)
11/7/2011 63
64. Annual Sustainability Planning Process
D
A
Implement
Sustainability
Projects in Teams
Training
Measure Progress
B/C
D
Measure Baseline
Brainstorm Annual
Develop Vision for
Projects & Targets
OGC
11/7/2011 64
65. OGC’s Long Term Sustainability Goals
Goal #1: Achieve carbon neutrality and eliminate fossil fuel use
Goal #2: Eliminate solid waste and toxic substances
Goal #3: Achieve on-farm sustainability and small/medium farm
viability
Goal #4: Foster a healthy and fulfilling workplace (added 2007)
Goal #5: Build customer and broader community awareness and
support for a healthy and sustainable food system. (added 2008)
11/7/2011 65
66. Facilities: Energy and Efficiency
• Switched to 100% clean
wind power and/or
green power in all three
facilities.
• Installation of high
efficiency lighting and
occupancy sensors is
saving $2,764 annually.
• Refrigeration system
upgrades, insulation
and dock seals saving
$3,635 annually.
11/7/2011 66
68. Employee SMART Commuting Program
Number of
TOTAL Days of Average
Number of Alternative Commute Pounds of
Participants Transport Distance CO2 Saved
PORTLAND 55 2010 19.2 37,385
EUGENE 16 1005 22.4 20,160
• Employee punch cards with monthly and
special prize drawings
• Track and post results
11/7/2011 68
69. How do they measure our progress?
• OGC tracks nearly 50 performance metrics
• Regular public posting
• Annual Sustainability Report
11/7/2011 69
70. ABCD Methodology in Practice
Awareness
• Who? How?
Baseline
• List System Condition violations.
• How will you measure the baseline?
Compelling Vision
• Who will help create it?
• How will you create it?
Down to Action
• Who will help brainstorm possibilities?
• How will you ID best practices?
• what/how measure?
71. Luncheon
The Center for a Sustainable Future
would like to offer a special thanks to
our underwriters!!!
76. Advanced Training for Sustainability
Champions
Center for a Sustainable Future
and
Pfeil Center for Innovation
Present:
Advanced Training for Sustainability Champions
15 Week Course
Thursdays, 5:30-8:00pm
January 19 – May 3, 2012
Cost: $350.00
77. Upcoming Events
• "Sustain the Future" You Tube
World Premier
Tuesday, November 15 • Workshop
7:00pm Evaluation
Community Building
River Crossing Campus Apts • Email List
• Farmageddon: The Movie
Monday December 5
7:00pm
IU South Bend Campus
Wiekamp Hall Rm. 1001
FREE!
78. Center for a Sustainable Future
Center for a Sustainable Future
http://www.sustainthefuture.iusb.edu
79. Thank you for participating
The Center for a Sustainable Future
would like to offer a special thanks to
our underwriters!!!
Hinweis der Redaktion
Based on the early adopters in Sweden, this way of planning spread to a wider community of business at the international level.
Source from over 250 growers/ vendors – more than 90% direct from growersProduct line varies. Right now: 220 items We carry multiple brands of same product offering customers a range of (price/quality/size) options for the same product1/3 of our product is sourced in Oregon and Washington; local sourcing peaks in summer/ early fall
In our staff surveys, over 95% of staff say they strongly embrace the company’s mission and core values.We expect all staff to become educated about the product, our growers and about organic agriculture. Over the past two summers, we have sponsored classes conducted by Oregon Tilth at Luscher Farm near Lake Oswego. At the session Natalie and I attended this summer, we learned about the organic certification process from a Tilth auditor and about the production and uses of compost tea. We also got on hands and knees and weeded a row of cilantro – a great reminder of the labor-intensive nature organic farming can be. As the business grows, we intend to take deliberate steps to provide staff at the lower end of the pay scale with above market compensation and benefits. We offer a 6.5% 401K match and profit sharing (approx 20% of profits) that is paid strictly on the basis of hours worked and seniority with the company.
THE CHALLENGE AHEAD: I think organic farming systems provide us with the foundation on which to build the house. I think consumers are looking to the organic trade to be leaders. Not enough to sell organic apple but to know that it was harvested, packed, put into a truck a warehouse, store, dinner table with the principles of sustainability being followed. I am hopeful that is there is a growing movement of food producers, distributors, etc asking this question. I was hired as “sustainability” manager and people were like what is that? Now going to trade shows and conferences I am meeting lots of people hired to focus on this task. Not just a marketing thing, it is becoming accepted as a business imperative—we can’t keep using up resources as we have we are experiencing climate change—were going to have to change are you going to be the first or the last to change? Consumers are looking to organic to be a leader in brining us a sustainable food system. Organic offers the foundation upon which to grow.
In 2005, OGC management concluded that a strong and legitimate market for organic produce had developed. We convened a summit attended by nearly 200 staff, growers, retailers, and other suppliers to discuss how we could go “beyond organic” certification process to address packaging, transportation, facilities, and labor employed in harvesting, processing, and shipping produce. OGC’s board of directors changed our mission statement from “Promoting health through certified organic agriculture” to “Promoting health through organic agriculture as a leading sustainable organization”.OGC hired Natalie as a graduate student intern to explore sustainability initiatives that could be pursued in the trade. That led to the development of the Food Trade Sustainability Leadership program at the U of Oregon.In early 2006, OGC’s sustainability efforts were piecemeal and not coordinated. Rick Baker, the interim CEO, introduced the company to Duke Castle and The Oregon Natural Step.Upon joining OGC in Feb 06, Josh hired Natalie to serve as the company’s first Sustainability Coordinator reporting directly to the CEO. Over the next few months, Natalie, Josh and Duke conducted half-day sustainability orientations to over 100 staff. We conduct annual Natural Step trainings for all new hires as well as additional training for interested staff.In the summer of 2006, Natalie formed our first Sustainability Steering Committee. The committee consisted of at least one non-manager employee from each department and each facility. Duke Castle facilitated the meetings. We employed the Natural Step Backcasting Planning Model
This slide shows how we have been integrating sustainability into our annual planning process for the last 2 years. Every spring we are committed to an annual training in TNS for every employee and offer advanced topic trainings for others. Over the summer we form a rotating Sustainability Steering Committee representing each dept and facility (aspiring leaders and interested people) we hold a series of planning meetings. The committees first order of business is to take stock of our progress by doing a baseline assessment of our business--SCORE (Sustainability Competency & Opportunity Rating & Evaluation) self-audit developed by Darcy Hitchcock and Marsha Willard of Axis Performance Advisors. The SCORE audit is a practical way we have found to scrutinize our business practices against the principles of sustainability allowing us to identify the areas which we still have unsustainable behaviors and processes. Reflect on: Are we doing any better? What areas are we making progress or having a hard time? Why? Using the backcasting process, the Committee members revisit our long term breakthrough goals and vision asking “what would success look like” if we operated in a sustainable manner? If our business did not violate the TNS system conditions?Then we have a compass of where we want to go, next we work on developing a list of specific projects we can undertake over the next year that will help us work towards our breakthrough goals. These projects are then worked into our annual operating plan—budgeting staff time, and financial resources. Every year our ambition is great, we have many things we need to work on and limited energy, so we needed to balance things like cost,, most impact for the effort, staff energy. This is a the most critical part of the planning process that can make or break our sustainability initiatives. You, can’t expect change to fast or employees feel bunt out and resentful about sustainability initiatives on top of existing responsibilities on the other hand engaging employees makes them feel proud of the work they do. Have to make sure that success measures are integrated into individual employee goals and annual objectives.SEE PAGE 7 and 8 of ANNUAL REPORT.
Here are the long term breakthrough goals we have developed over the last 2 years. These goals provide our our “compass, take some of the theoretical aspects of sustainability and boil it down the main areas we need to work in order for our business to be sustainable. READ GOALS ALOUD... We know we wont achieve these overnight, but every year we will strive to take on project that are steps toward achieving these objectives. Work these projects into our annual operating plan and budget.Next I will highlight a fewof these projects.
Costs an extra $12,000 per year.
Tonya Haworth and Jason Smith sorted and documented our trash.A team installed color-coded signage to help staff sort and properly dispose of compost, recyclable items and trashWe acquired more user-friendly recycling and compost bins.We educated staff at team meetings.Challenges: changing culture; disposing items that aren’t easy to recycle (e.g. waxed lined boxes), and persuading suppliers to change packaging
Goal 1: Achieve carbon neutrality and eliminate fossil fuel use [SC #1 & #3]Health and wellness committee in 2010 launched to organize education, activities and programs that support the personal health of our employees. We hope to harness OGC’s spirit of fun and creativity to create opportunities that our fellow employees will take advantage of and value.Monthly or Quarterly Education Topics: nutrition and weight loss, know your #’s (cholesterol, blood pressure, etc), flu prevention, ergonomics, stress reduction, smoking cessation, etcHelp Employees Take Advantage of Providence Health Plans: The “Life Balance” program includes free health assessments, personal health trackers, health & nutrition classes, tobacco cessation support, discounts and more.Employee Training Together for a Fitness Activity:hood-to coast relay, shamrock run, truffle shuffle, “worst-day of the year to ride” Wellness Fair:Information on health, screening and prevention.Fitness Goal Setting and Contests:Similar to OGCs SMART Commute program, where employees work towards personal fitness goals together (i.e. Organic Valley has walking/jogging teams and distance goals).