Notes on the 3rd morning of the LEAD International Session 2011 - Brian Smith, LEAD Canada - Cohort 3

October 18 Morning:  Mr. Willard explained that he is talking about sustainable business and the GE. He first explained the use of terms: SD, ESG, CSR, CR and TBL, all of which are similar to the 3 legged stool. The SD language is becoming more familiar, but "asset management" may be received better by business folks.  In recent years, the "Sustainability Imperative" has become a critical concern for business, escalated by public and governmental concerns.

Business CEO's have been surveyed in 2010, and over 90% think sustainability should be integrated into company operations, because their key stakeholders think it is important. The CEO's want to improve their brand image, to reduce costs, attract staff by being seen as more sustainable. UN Survey, A new Era of Sustainability, June 2010.

For CEO's, is SD one more goal, or an enabling strategy.? We need to position SD as enabling, and they will pay more attention. There are only 2 reasons for corporations to act: to capture opportunities, or avoid risks.  Opportunities include creating new revenues, reduce expenses, increase productivity. We need to link SD initiatives to increasing income and profit, reducing risk.

He has estimated percentage increases in key factors for typical companies, that would range from 50 to 80%, using his spreadsheets. These spreadsheet will be made available through LEAD, as will his powerpoints, and his research will be explained in Mr. Willard's new book in Spring 2012.
Within 5-10 years, it is expected that over 55% of the companies will act with SD in mind, the 'tipping point" for more sustainable companies to be the norm.

There is a new economy developing, one that is greener, using local supply changes, new corporate structures: social enterprises, hybrid organizations, and flexible corporations. The drive to the lowest common denominator is not as prominent as it has been, as SD becomes more integrated in corporate thinking and practise (eg Walmart supply chain change efforts).