OIA Presentation-2Am.Pptx

Charting a Sustainability Roadmap for Your Company Charng a Sustainability Roadmap For Your Company Andrea Moﬀat, Ceres Ceres is a naonal network of investors, environmental organizaons and other public interest groups working with companies and investors to address sustainability challenges, such as climate change.

Company Network Investor Network More than 80 members in More than 90 members more than 20 sectors currently represenng $9.8 trillion

The Ceres Coalion More than 130 organizaons including environmental experts, public interest groups, and investors.

Confidential 3 Some of Our Coalion Members  AFL-CIO  Naonal Wildlife Federaon  CalPERS  Natural Resources Defense Council  CalSTRS  New York City Comptroller’s Office  California State Controller's Office  Oxfam  Conservaon Internaonal  Union of Concerned Sciensts  Environmental Defense Fund  US Green Building Council Some of Our Company Members  Aspen Skiing Co.  Dell Inc.  Nike  Best Buy  Ford Motor Company  PepsiCo  Bloomberg  Gap  Seventh Generaon  Clif Bar  General Mills  The North Face  Ci  Levi Strauss & Co.  Timberland  Coca-Cola  McDonald’s Corp.  Virgin America

4 . Populaon Growth . Resource Constraints . Climate Change . Economic Globalizaon . Connecvity and Communicaons

“All companies face a direct impact from decreasing natural resources, rising populaons and disrupon from climate change…Never has business had a more crucial call to innovate — not just for the health and growth opportunies for our companies, but for the good of the world.” Mark Parker, CEO, Nike

5 . Eﬀects of climate change threatening the world’s eco-systems—projected snow-pack loss in Colorado alone could be 50-80% over the next several decades—and the call for naonal and internaonal climate policy . 60% of global coon supply is currently from water-stressed regions and in 2010, the UN declared access to water a basic human right . Stakeholders are demanding greater accountability in the supply chain—WRI & Scope 3

6 Risks Opportunies . Policy/Regulatory  Compeve advantage . Physical  Consumer interest . Reputaonal  Reputaonal advantage . Compeve  Employee sasfacon . Legal  Customer sasfacon

“As ﬁduciaries, it is incumbent that directors act in a way that considers the full spectrum of risks facing companies, including emerging risks like climate change, water scarcity and human rights.” -- Adele Simmons, MMC board  39% of U.S. directors expect the board to spend more me on sustainability issues

 93% of UN Global Compact member CEOs said that sustainability is important to the future success of their business. 91% of those CEOs reported that they will employ new technologies to address sustainability issues over the next 5 years

 Companies’ integrang sustainability criteria into supplier RFP processes (Intel, HP, Exelon & others)

 In 2009, clean energy investments in China totaled $36.4 billion, compared to $18.6 billion in the U.S.—Chinese oﬃcials announced they want to spend $75 billion a year on clean energy

8 Investor Interest is Growing . INCR: More than 90 members with nearly $10 trillion in assets. . New green investment and retail products: Over 726 green funds and indices globally; Climate economy $9.8 revenues at $530 B in 2009. Trillion . Shareholder resoluons. In 2010 over 100 resoluons on climate risk . New lisng requirements implemented by the Johannesburg Stock Exchange $600 Billion and the Singapore Exchange . SEC guidance on climate risk disclosure The Ceres Roadmap

➡ 20 Expectaons by 2020 ➡ Four secons Governance Stakeholder Engagement Disclosure Performance ➡ Includes 200 company best pracce examples, in more than 20 sectors ➡ Features over 250 tools and resources 11  “Fiduciary duty;” employee innovaon incenves

 Board oversight integrated into board charter

 Risk management & capital expenditures

12 . Policy Iniave launched in coordinaon with Ceres in November 2008 . Business community to engage Congress to pass comprehensive energy and climate policy . Founding companies include Nike, Sun Microsystems, Timberland, Starbucks, and Levi Strauss & Co. Addional companies include: eBay, Gap, The North Face, Target and the Outdoor Industry Associaon . Companies supporng 9 key principles that guide and encourage the creaon of comprehensive, naonal climate legislaon

13 14 15  Materiality analysis

 Consumer engagement—The Footprint Chronicles

 Quarterly stakeholder engagement with the CEO on key sustainability issues for the company

16 17 Use of the web and social media to deliver the sustainability message is on the rise

Timberland, Nike, Mountain Equipment Co-op, REI, and others working to communicate product sustainability to consumers

Seventh Generaon product disclosure iPhone applicaon

The FTC Green Guidelines to combat green washing

18 P1.1 GHGs and Energy Eﬃciency P2.1 Policies and Codes P1.2 Facilies and Buildings P2.2 Align Procurement Pracces P1.3 Water Management P2.3 Engaging Suppliers P1.4 Eliminate Waste P2.4 Measurement and Disclosure P1.5 Human Rights

19 Sustainably focused procurement policies

Commitment to sustainable packaging

Developed closed loop process ReEntry®

20 P3.1 Transportaon and Management P4.1 Business Model Innovaon P3.2 Transportaon Modes P4.2 R&D and Capital Investment P3.3 Business Travel and Commung P4.3 Design for Sustainability P4.4 Markeng Pracces P4.5 Strategic Collaboraon

21 P5.1 Recruitment and Retenon P5.2 Training and Support P5.3 Promong Sustainable Lifestyles

22  Saved $1 million and reduced transportaon related emissions 97%

 bluesign® members like REI, MEC, Patagonia, and The North Face looking at EHS impacts across the texle manufacturing chain

 Invesng in sustainability: Innovaon Fund

 ebay’s Green Team bringing together both employees and consumers

23 Developed by the OIA and member companies over the past three years Design tool to evaluate the life cycle impacts of outdoor industry products Facilitates an understanding of and direcon on where there are opportunies to decrease the environmental impacts of products Currently in beta phase and being tested by pilot companies

24 So what do you do now?  Assess your company’s baseline environmental and social performance  Analyze your corporate management and accountability systems  Conduct a materiality assessment of your risks and opportunies  Formulate your own route to sustainability based on your business and culture  Collaborate with NGOs, employees, communies and other companies  Take Acon! Andrea Moﬀat Senior Director Corporate Programs 617-247-0700 x136 moﬀ[email protected] www.ceres.org