Sustainability: What Are the Benefits to Our Business?

Transcription

1 Sustainability: What Are the Benefits to Our Business? J.C. (Jack) Gustashaw, P.E. Sr. Vice President Middough Inc.

2 Sustainability: What Are the Benefits to Our Business? J.C. (Jack) Gustashaw, P.E. Middough Inc. Sr. Vice President Business Development Responsible for the Business Development and Marketing activities for eight business units nationwide. During his 34 years in the engineering / construction business, he has had the opportunity to work in many different industries including process, pharmaceutical, consumer, manufacturing, commercial and institutional. BS Degree in Agricultural Engineering; MS Degree in Mechanical Engineering; University of Florida.

3 Sustainability: What Are the Benefits to Our Business? SPM 2 Sustainable Process Methods at Middough A Systematic Approach to Sustainability An integrated full-service Architectural, Engineering and Management firm with offices nationwide.

4 Sustainability: What Are the Benefits to Our Business? SPM 2 at the Project Level Gaseous Waste Raw Materials Energy People Project Product People Liquid Waste Solid Waste Environmental Opportunities Quantitative (Energy/Mass Balance) Qualitative (Life Cycle Analysis) Assimilative/Regenerative Social Opportunities Safety Staff Efficiency Turnover Rate Financial Opportunities Direct Costs Indirect Costs Future Costs Intangible Costs

5 Sustainability: What Are the Benefits to Our Business? SPM 2 at the Macro Level (Big Picture) Raw Materials Energy People Project Product People Customer Re-Entry Recycle The Objective is to Win all Three: Environmental Social Financial

6 Sustainability Roadmap Developed By Industry for Industry D. S. Schuster, PhD Director Institute for Sustainability Center for Sustainable Technology Practices

7 Potential for Improvement SD Roadmap Summary Table 155 Key Sustainability Questions Where to ask them during process and product development Who should be included in the answers?

8 Sustainable Development (SD) Roadmap The Roadmap Categories concerning a new product and/or process sustainability Developed by the Center of Sustainable Technology Practices (CSTP) team of the American Institute of Chemical Engineers Team members include: Continued testing is taking place

9 SD Considerations Environmental Social Econ. Resource Use Environmental Impact Health & Safety Societal Impact Economic Impact Energy use, material intensity, water use, land use GHG emissions, air emissions, solid waste, (pollutant effects) Toxic reduction, hazards, process safety Workers well-being, local community impacts/qol, global societal impacts/contributions Financials along value-chain (corporate, customers, ) Business Perspective Management Business Strategy Internal process, value-chain partnership, stakeholder engagement SD alignment with biz strategy & core value, core competencies, market & regulatory drivers

10 Elements of the SD Roadmap Value Chain Stages CORPORATE FUNCTIONS Executive Management (EXEC MGMT) Financial (FIN) Business Management (BUS MGMT) Research & Development (R&D) SUSTAINABILITY VALUE CHAIN R/A C Business Strategy Development & Alignment R/A Upstream Input R&D Stages Idea Generation / Concept Scoping Definition Development Scale-up Commercialization Innovation Environmental Health & Safety (EHS) C R C C R/C R/C Production End of Life Industrial Customer Use Consumer Use Facility molecule Corporate Functions Axis (from top to bottom, each box represents a different corporate function that is critical to driving sustainability in the organization) Distribution Corporate Functions Sustainability considerations Tools & Resources Engineering Executive Management (ENG) C Manufacturing / Operations (OPS) R/A Logistics / Supply Chain (SCM) R R/A SALES C C/I R C Customer Technical Service/Support (CTS) R/A Marketing (MRKT) C C/I R R Communications (COMS) C I I A Public Relations (PR) C C/I A A A Human Resources (HR) C I LEGAL C I I I I I Info. Technology / Info. Management (IT / IM) Other Understand alignment of business strategy with sustainability. What is material (e.g. important to both the business and society)? - Understanding the organization's business strategy and core values - Understanding how the organization's SUSTAINABILITY currently addresses environmental, CONSIDERATIONS: social and economic aspects - Identification and prioritizaztion of key stakeholder values/issues WBCSD Reports: - Business for Development: Business solutions in Support of Millenium Development Goals (2005) - Issue Management Tool: Strategic challenges for business in the use of corporate responsibility codes, standards and frameworks (2005) - Raising the Bar: Creating value with the UN Global Compact (2004) - Running the Risk: Risk & Sustainable Development - A business perspective (2004) PUBLIC TOOLS: GEMI Tools: - Metrics Navigator (forthcoming 2007) - Clear Advantage: Building Shareholder Value/ Environment: Value to the Investor BASF Eco-Efficiency Tool to compare alternatives IN-HOUSE TOOLS: Financial Business Management R&D EHS Engineering Manufacturing / Operations I What are the market opportunities How does this proposal align Given current available Given current available Given current available Given current available Given current available Given current available Eco-efficiency Transportation efficiency; What are the by-products What are the by-products with business strategy, core information, how does the information, how does the information, how does the information, how does the information, how does the information, how does the maximize transport that can be re-used? that can be re-used? Resource usage; competencies and proposed product/process proposed product/process proposed product/process proposed product/process proposed product/process proposed product/process Pollutant streams system sustainability-related goals? address the following address the following address the following address the following address the following address the following Product stewardship Product stewardship Human health; sustainability categories? sustainability categories? sustainability categories? sustainability category? sustainability categories? sustainability categories? What economies are you Energy use; emissions; How this product expected i. Resource usage; i. Resource usage; i. Resource usage; i. Economic impacts to i. Resource usage; i. Resource usage; supporting? Are you climate change What are the sustainability What are the The environment; to impact ii. Human health; ii. Human health; ii. Human health; customers and the business ii. Human health; ii. Human health; contracting with local standards of your sustainability standards Logistics i. Resource usage; iii. The environment; / Supply iii. The environment; iii. Economic impacts Chain to supply chain iii. The environment; iii. The environment; firms? What are the sustainability business partners? of your business Society; ii. Human health; iv. Society; iv. Economic impacts to customers and the business iv. Society; iv. Society; standards of your partners? iii. The environment; v. Economic impacts to customers and the business supply chain? v. Economic impacts to v. Customers and the Labor issues; Worker business partners? Customers and the business supply iv. Society; customers and the business supply chain? customers and the business business supply chain? Health & Safety chain? v. Customers and the supply chain? supply chain? business supply chain? Evaluate EHS Goals Labor practices, Sales How good will this product Supplier infrastructure / network be compared to other 'green' alternatives? Wh t th t i bilit WBCSD Reports: Go to: Concept Checklist Go to: Scoping Checklist Go to: Definition Checklist Go to: Development Go to: Scale-up Checklist Go to: Commercialization GEMI Tools: GEMI Tools: GEMI Tools: - Doing Business with the World Checklist Checklist - Metrics Navigator - Metrics Navigator - Metrics Navigator (forthcoming 2007) (forthcoming 2007) (forthcoming 2007) (forthcoming 2007) - From Challenge to Opportunity: Customer The Technical Service/Support - Forging New Links: - Forging New Links: - Forging New Links: role of business in tomorrow's society Enhancing Supply Chain Enhancing Supply Chain Enhancing Supply Chain (2006) Value Through Value Through Value Through Environmental Excellence Environmental Excellence Environmental Excellence (2004) (2004) (2004) Marketing Communications GEMI Tools: Go to: Concept Screening Go to: Scoping Screening Go to: Definition Screening - Metrics Navigator (forthcoming 2007) Matrix Matrix Matrix - Transparency: A Path to Trust (2004) Public Relations Human Resources Center for Waste Reduction Technologies (CSRT) TCA Methodology Legal Stakeholder Communications Plan Go to: Develoment Go to: Scale-up Screening Go to: Commercialization Screening Matrix Matrix Screening Matrix Center for Waste Reduction Technologies (CSRT) TCA Methodology DuPont Stewardship & Life Cycle Inventory from Air Products' Multigenerational Product Planning Sustainable Growth Boustead Assessment (MGPP) Information Monsanto's Eco-Fitness GSK Technology Solvent Selection & Management Compass Guide Air Products' Product Risk Review Dow's Total Business Cost Assessment Dow's Total Business Cost Assessment

11 Upstream Input 18. Would customer/stakeholder concerns affect the future use of the feedstock? Willow-based ethanol industrial scale is very dependent on interest from investors, customers and potential farmers. Willow feedstock initially would be grown almost exclusively on land being leased to the producers via private land owners and farmers. (Pioneering Energy Crops..., 2000) Cooperation and the future of the feedstock are contingent on the confidence of landowners in the market for willow ethanol.

12 Sustainability Index: Benchmark for Industry Calvin B. Cobb President Chair, AIChE Institute for Sustainability

13 AIChE Sustainability Index for the Chemical Industry September 2007 Strategic Commitment 7 6 Environmental Performance 5 4 Safety Performance Product Stewardship Social Responsibility Sustainability Innovation Value Chain Management Major Diversified Specialty Materials Industrial Gases Commodity Chemicals

14 AIChE Sustainability Index for the Chemical Industry September 2007 Strategic Commitment 7 6 Environmental Performance 5 4 Safety Performance Product Stewardship Social Responsibility Sustainability Innovation Value Chain Management Net Revenue > $10 Billion USD Net Revenue < $10 Billion USD