The Triple Bottom Line

of Business

Joe Kresse
Steve Attinger

San Jose State University

December 2, 2003
Agenda

History of Sustainability and the

Triple Bottom Line
CERES and GRI
Models for Sustainability
The Triple Bottom Line Business Case
Sustainability Ladder
Case Examples

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History of Sustainability

1962: Rachel Carson publishes Silent Spring

1970:
First Earth Day celebration April 22nd
Nixon establishes EPA
Fueled by industrialization and overpopulation
impacts
1972: First UN conference on the Human
Environment in Stockholm, Sweden
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History of Sustainability
1983 UN establishes World Commission
on Environment and Development
Purpose: examine worlds critical environment and
development problems and formulate solutions
1987: Brundtland Commission Report
3 components of Sustainable Development:
Environmental protection, Economic growth,
and Social equity
Defined Sustainable Development as

Development that meets the needs of the present without

compromising the ability of future generations to meet their own
needs.

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History of Sustainability

1992: Rio Earth Summit

Over 178 governments adopted
Agenda 21: a global blueprint and plan of action for sustainable
development in the 21st century
The Rio Declaration on Environment and Development
27 principles that express the rights and responsibilities of
nations as they pursue human development and well-being
The Forest Principles
A guide for the management, conservation, and sustainable
development of all types of forests
2002: Third UN conference on Environment and
Development, Johannesburg, South Africa

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The Triple Bottom Line

People, planet, and profits

Equity, environment, economy
TBL coined by John Elkington of SustainAbility
(UK) in 1995
Cannibals With Forks: The Triple Bottom Line of 21st
Century Business (1997)
The Chrysalis Economy: How Citizen CEOs and their
Corporations Can Fuse Values and Value Creation (2001)
www.sustainability.com

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CERES

Coalition for Environmentally Responsible

Economies (1989)
10 principles for environmental management
Endorsing companies
American Airlines, B of A, Ben & Jerry's, Coca-Cola,
Fleet Boston Financial, Ford, GM, Interface, Nike,
Polaroid, The Timberland Co., and others
Launched Global Reporting Initiative (1997)

www.ceres.org

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The CERES Principles
1. Protection of the Biosphere
2. Sustainable Use of Natural Resources
3. Reduction and Disposal of Wastes
4. Energy Conservation
5. Risk Reduction
6. Safe Products and Services
7. Environmental Restoration
8. Informing the Public
9. Management Commitment
10. Audits and Reports
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GRI

Global Reporting Initiative (1997)

Voluntary globally applicable sustainability
reporting guidelines
341 organizations in 31 countries
Europe vs. US

www.globalreporting.org

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Reports per Year

10
Type of Reports in 2002

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Reports per Country

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Models for Sustainability
The Natural Step www.naturalstep.org
4 system conditions
McDonough Principles www.mbdc.com
Cradle-to-cradle design
Waste = Food
Natural Capitalism www.natcap.org/
Radically increase resource productivity
Redesign industry on biological models with closed loops
and zero waste
Shift from products to services
Reinvest in natural capital

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The TBL Business Case

Short-term cost reduction

Energy efficiency and waste reduction
Longer-term return on investment
Investment in building improvements
Value creation - Existing markets
Value creation - New markets

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Sustainability Ladder

1. Products and services

2. Processes
3. Business model
4. Company focus
5. Brand identity of company
6. Supplier web and value chain
7. Industry leadership and advocacy role

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Case Examples

Dupont Interface
BP Nike
Shell Chaparral Steel Company
Agilent Johnson & Johnson
HP IdleAire Technology Corp.
Lighting Components and
Design Inc.

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Dupont
An international corporation that manufactures healthcare products,
electronics and other goods
Developed a sustainable growth mission
Reduced consumption of raw materials and energy
Used scientific and technical knowledge to create more
environmentally-friendly products
Engaged stakeholders of the corporation
Created a Carpet Reclamation Program where they have reclaimed
and recycled 90 million pounds of carpet
By combining the recycling and sorting process in one location,
Dupont has vastly reduced both energy consumption and costs

Source: The BSD Global website

http://www.bsdglobal.com/viewcasestudy.asp?id=123

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HP

Packaging Initiative
Lighter paperboard sleeve for ink cartridges
Reduced packaging weight by 34%, reducing costs by
more than $700,000 a year
Reusable transit packaging for inkjet cartridges
Reduced waste by 2,400 tonnes in 2002, saving $1.5M
Bulk packaging for desktop computers
Reduced waste by 86%, saving $1.1M in 2002
Expected savings of $4M in 2003

http://www.hp.com/hpinfo/globalcitizenship/gcreport/products/packaging.html

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Interface Corporation

The largest commercial carpet manufacturer

in the world
Vision:
To be the first company that, by its deeds, shows the
entire industrial world what sustainability is in all
its dimensions: People, process, product, place and
profits by 2020 and in doing so we will become
restorative through the power of influence.

www.interfaceinc.com

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Interface Corporation
The Seven Steps
1. Eliminate Waste QUEST program
2. Benign Emissions Elimination of molecular waste
3. Renewable Energy Reducing overall usage; transitioning to
renewables
4. Closing the Loop Creating cyclical material flows.
5. Resource Efficient Transportation Reducing movement of
products/people in favor of data, e.g. plant location, video-
conferencing, telecommuting
6. Sensitivity Hookup A community within and around Interface that
understands natural systems and our impact on them.
7. Redesign Commerce Providing services rather than products

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Nike
Created a Transparency 101 Program, which ensures public
awareness of Nikes business practices
Transparency 101 also monitors its factories in each country to make
sure its practices follow Nikes code of conduct
Nike is phasing out the use of PVC and other harmful chemicals in its
products through work with William McDonough
Created the Reuse a Shoe, a program that recycles shoes
Uses organic cotton in some of their clothing
Has certified its Oregon buildings in an effort to decrease energy use

Source: The BSD Global website.

http://www.bsdglobal.com/viewcasestudy.asp?id=81

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Chaparral Steel Company

Produces bar and structural steel products by recycling scrap steel

Created Systems and Technology for Advanced Recycling (STAR)
Collaborated with neighboring cement plant
Business opportunities for this technology in emission credit trading
Built advanced Automobile Shredder Residue (ASR) system
Plastics can be used as a clean, efficient fuel source.
Sale of clean plastics alone generates up to $500,000 a year.
Looking to market ASR for mining and selling of clean plastics (waste)
rather than sending them to landfills

Source: The BSD Global website

http://www.bsdglobal.com/viewcasestudy.asp?id=51

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Chaparral Recycling Facility

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Johnson & Johnson
Has made a major effort to be more energy efficient by
reviewing the usage of all aspects of its buildings (lights,
fans, motors, etc.)
Received 1995 Green Lights Partner of the Year Award for
large corporations
Received 1996 Sustained Excellence Award for completing
and maintaining lighting upgrades for more than 94% of its
workspace
Involved in a variety of different programs, including
ClimateWise, Energy Star Buildings, and Energy Star
Computers
Source: The BSD Global website
http://www.bsdglobal.com/viewcasestudy.asp?id=76

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IdleAire Technology Corp.

1.3 million long-haul trucks in US waste 4.4B gals. of diesel

annually when drivers leave engines idling when resting.
Represents 2.6 % of all imported oil
IdleAire created a technology that allows trucks to heat and
cool their cabs without idling their engines, thereby reducing
the amount of fuel used and emissions released
IdleAire installs individual heat and air units above parking
spaces at truck stops, charging $10 for 8 hours of service
Truck owners also save as much as 40% on fuel costs

Source: Green Gazelles website

http://www.geocities.com/greengazelles/new.html

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Lighting Components and Design Inc.

Engineering company that manufactures miniature lighting components

Created cross-functional team to create a template of energy efficiency
improvements
Improved insulation of its facilities
Upgraded lighting to fluorescent lamps, including electronic ballasts
Upgraded HVAC system to reduce energy
Installed low-flow toilets and water-saving taps
Upgraded over 24 pieces of motorized manufacturing equipment with energy-
efficient motors
Winner of the EnergyStar 2002 Small Business and Congregations Award
Result? Prevented over 300,000 pounds of CO2 emissions and saved $10,300 on
utility bills per year

Source: EnergyStar website

http://208.254.22.7/index.cfm?c=sb_success.sb_2002winners#lighting

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Thank you

Q&A

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GRI 2002 Guidelines - Summary
Category Aspects
Customers Providers of capital
Suppliers Public sector
Economic Direct Economic Employees
Impacts
Materials Suppliers
Energy Products and services
Water Compliance
Environmental Environmental Biodiversity Transport
Emissions, effluents, and waste Overall
Social Labor Practices and Employment Training and education
Decent Work Labor/management relations Diversity and opportunity
Health and safety
Human Rights Non-discrimination Forced and compulsory
Child labor labor
Disciplinary practices Freedom of association &
Security practices collective bargaining
Indigenous rights Strategy and management

Society Community Political contributions

Bribery and corruption Competition and pricing
Product Responsibility Customer health and safety Advertising
Products and services Respect for privacy
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Committing to Sustainability

ABB Fairmont Chateau NovoNordisk

Whistler
Agilent Hewlett-Packard Placer Dome Mining
Bank of America Home Depot Rejuvenation Lamp &
Fixtures
B.C. Buildings Corp. Interface Carpet Rohner Textiles

BP Jardinire Restaurants Rolltronics

CH2M HILL Matsushita Corp. Shell
DesignTex McDonalds Starbucks
Dow Chemical Nike Victor Innovatex
Dupont Norm Thompson Whistler Ski Resort
Outfitters
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