Grice Lisa Ramboll Corporate Sustainability Where the Rest of the Company Fits From Strategy to Implementation MECC Kansas City May 11-13, 2016 Overland Park www.mecconference.com

1. CORPORATE SUSTAINABILITY
WHERE THE REST OF THE COMPANY FITS:
FROM STRATEGY TO IMPLEMENTATION

2. 2
“
”
INTEGRATION STRATEGY: CASE STUDY 1
• Understand the business
• Position yourself within the business
• Be responsive to the customer
• Be involved in the ground-breaking
• Business should be accountable
for Sustainability
• Have a small team
Ron Jarvis
Home Depot Vice President of
Merchandising and Environmental
Innovation
I have been very fortunate
to have sustainability
responsibility along with
core business
responsibility;
it has taught me that not
everything that counts
can be counted.
Home Improvement Sustainability Progress through
Product Innovation

3. 3
INTEGRATION RESULTS: CASE STUDY 1
• Goal: reduce carbon emissions from supply chain by 20% from 2008 to 2015
• Achieved 35%
• Upstream transportation and distribution of freight
– a move to a centralized distribution network, instead of the mostly supplier-to-store process in place
currently
– More efficient routing, scheduling and consolidation of store shipments
Supply Chain

4. 4
INTEGRATION RESULTS: CASE STUDY 1
• Worked with NGOs, Suppliers, and Certification
labels to develop criteria:
Sustainable Forestry
Energy Efficient
Healthy Home
Clean Air
Water Conservation
• Customer Driven
• 175,000 Suppliers
• Eco Options products sold in 2014 helped
customers reduce water use by 48 billion gallons
and GHG emissions by 3.5 million metric tons
Products: Eco Options

5. 5
RAMBOLL IN BRIEF
• Independent management & environmental
consulting, engineering and design firm
• Founded 1945 in Denmark
• 13.000 employees and 300 offices in 35
countries
• Revenue 2015: 1,1 Billion EURO
• Owned by Ramboll Foundation
Founded as “Ramboll & Hannemann“
with clear principles
• Strong personal values
• High ethical standards
• Social responsibilities
• Satisfied employees

6. 6
SUSTAINABILITY PROFESSIONAL ROLES
Driving/Forcing
Integrating
Decorating
Driving/Forcing
Change only when you’re watching
(ex. Supplier sustainability survey without materiality
assessment)
Decorating
Regardless of change
(ex. Reported KPI’s on how many supplier surveys have
been completed)
Integrating
Be a catalyst for action
(ex. Align with SCM objectives to develop relevant KPI
like reduce risk of business disruption by reducing use of
water intensive suppliers in water scarce regions)

7. 7
SUSTAINABILITY IS MORE THAN CARBON FOOTPRINTING…
ALCOHOLIC BEVERAGES* PHARMACEUTICALS* TOYS & SPORTING GOODS*
• Greenhouse gas emissions
• Energy management
• Water management
• Responsible drinking and
marketing
• Packaging lifecycle management
• Environmental and social impacts
of ingredient supply chains
• Access to medicines
• Drug safety and side effects
• Safety of clinical trial participants
• Affordability and fair pricing
• Ethical marketing
• Employee recruitment,
development and retention
• Employee health and safety
• Counterfeit drugs
• Energy, water and waste efficiency
• Corruption and bribery
• Manufacturing and supply chain
quality management
• Chemical & Safety Hazards of
Products
• Labor conditions in supply chain
*Sustainability Accounting Standards Board provisional standard

8. 8
FILTER ISSUES AND DRIVERS TO PRIORITIZE
SUSTAINABILITY ACTIONS FOR OPTIMAL VALUE CREATION

9. 9
“SUSTAINABILITY” DRIVERS
• Brand protection/enhancement
• Legal liability
• Market differentiation
• Stewardship
• Business continuity and efficiency
• Resource efficiency and impact
• Community relations/license to operate
• Supply availability
• Employee recruitment and retention
• Regulatory positioning: Reg’s increasingly
moving from direct impact entity to
indirect impact entity
• Investors and B2B Customers

10. 10
SUSTAINABILITY: PRODUCT LIFECYCLE
21
Product environmental footprint
assessment and optimization
Green Products Product Safety: ingredients,
packaging, products
Green chemistry and sustainable
materials
Go-to-market strategies Exposure and safety assessments
Lifecycle analysis/EPD Green assertions/environmental
claims
Product stewardship program
design
Alternatives assessment Customer communications

11. 11
SUSTAINABILITY: OPERATIONS
Global chemicals company pursuing
new energy strategy to reduce carbon
footprint AND to reduce losses from
power disruptions
1 2
Resource Efficiency Climate Risk & Resilience People and Location
Integrated energy management Climate risk identification and mitigation Employee engagement
Circular economy Renewable energy: purchase/onsite Safety/Industrial Hygiene
Water vulnerability assessment GHG management Biodiversity/habitat impact
Industrial water use reduction Climate Action Plans Community relations
One of the world’s largest distilled spirits
companies considers water reductions
along with associated operations costs:
water treatment chemistry, discharge and
permitting costs, energy and water costs.

12. 12
SUSTAINABILITY: SUPPLIER NETWORK
Expertise in Supply Chain Management to mitigate risk and optimize network value
Industrial company developed
supply chain materiality
screening tool to identify and
prioritize key sustainability risks
and opportunities. Uses tool for
stakeholder relations and
procurement.
1
Social risk Environmental risk
Worker health and safety Climate or water vulnerability
Labor practices Impacts on biodiversity/habitat
Community welfare Environmental releases
2

13. 13
temporal
horizon less
than one
year
temporal
horizon more
than one
year
ENGAGE ACROSS SCM OPERATION
more company orientated more supply chain orientated
Procurement
strategy
Monitoring
Supplier
performance
Commodity-
Mmgt.
Supplier
portfolio-
development
Supplier
Mmgt.
Supplier
integration
Operational
material flow
Contract- &
Claim- &
Quality- &
Risk-Mgmt.
Projects &
Programs
Procurement
objectives,
plans, budgets
Internal
cooperation
Controlling
Organization,
Human
Resources,
Qualification
• Com.-Structure
• Com.-Strategy
• Supplier Evaluation
• Supplier Development
• Inquiries
• Ramp-up
• External
Cooperation
• Schedule &
• Bottleneck-Mmgt.
• Plan & Order
• Supplier Strategy

14. 14
THANK YOU