Action Plan for Sustainability and Environmental Responsibility

1. Action Plan for Sustainability and Environmental Responsibility Presentation to the National Association of Wholesaler-Distributors by George P. Nassos October 15, 2008

2. The Need for Sustainability – The Environment’s Big Three • Energy – Depleting Fossil Fuels • Water – Growing Shortage • Global Warming: 3-5º F., 2050, 60-80%, 1990

3. Take Your Choice! • CERES Principles • 4 R’s • Energy Efficiency • Adopt Sustainable Strategies

4. More Choices! • Apply Systems Approach – Tunneling • Climate Strategy • Green Buildings

5. Can Start With Quick Fix – Adopt the CERES Principles • Protection of the Biosphere • Sustainable Use of Natural Resources • Reduction and Disposal of Wastes • Energy Conservation • Risk Reduction

6. CERES Principles (cont’d) • Safe Products and Services • Environmental Restoration • Informing the Public • Management Commitment • Audits and Reports

7. Four R’s • Analyze waste streams • 1 – Determine waste value and Reduce • 2 – Identify alternatives and Reuse • 3 – Recycle • 4 – Redesign

8. Energy Efficiency • Eco-efficient vs. Eco-effective • Initially, Focus on Efficiency • Then, Focus on Renewable Energy

9. Adopt Sustainable Strategies • The Natural Step

10. The 4 Conditions of The Natural Step • Do not systematically increase concentration of substances extracted from the Earth’s crust • Do not systematically increase concentrations of substances produced by society • Do not systematically mismanage the ecosphere • Resources are used fairly and efficiently in order to meet basic human needs worldwide

11. Adopt Sustainable Strategies • The Natural Step • Servicizing

12. Servicizing • Redefine commerce to deliver service and value, not material • Maintain control over product life cycle • Produce more cost efficient products

13. Application of Servicizing Strategy • Incandescent Light Bulbs • Interface – Commercial Carpeting • Electrolux – Washing Machines • duPont & Ford – Auto Assembly Paint Shop

14. Adopt Sustainable Strategies • The Natural Step • Servicizing • Biomimicry

15. Learn From Nature – Biomimicry • Solar panels • Abalone • Spider’s silk • Bi-valves • Cow’s enzyme • Rhinoceros horn

16. Adopt Sustainable Strategies • The Natural Step • Servicizing • Biomimicry • Base of the Pyramid

17. The Global Pyramid Purchasing Power Population in Millions >$15,000 800 Wealthy Emerging Middle Class $1,500 – 15,000 1,500 Low-Income Markets (BOP) <$1,500 4,000

18. The Great Leap Downward Bottom of the Top Base of the Pyramid

19. Driving Innovation from the Base of the Pyramid • Honda • LEDs • Phones • Nirma • Galanz

20. Adopt Sustainable Strategies • The Natural Step • Servicizing • Biomimicry • Base of the Pyramid • “BHAG”

21. Toilet Lid Sink

22. Advantages of Vertical Farming • Year-around crop production • No weather problems • All food grown organically • Eliminates agricultural runoff • Farming in urban centers • Reduces fossil fuel use • Converts black and gray water

23. Vertical Farm

24. Tunneling • Diminishing Returns • Interface • House Insulation

25. Climate Strategy • Chicago Climate Exchange • Integrating Carbon Trade

26. Integrating Carbon Trade • Cap-and-Trade Market

27. Cap-and-Trade System

28. Integrating Carbon Trade • Cap-and-Trade Market • Offset Exchange

29. Offset Exchange System

30. Integrating Carbon Trade • Cap-and-Trade Market • Offset Exchange • Cap-and-Dividend

31. Climate Strategy • Chicago Climate Exchange • Integrating Carbon Trade • U. S. Climate Action Partnership

32. U.S. Climate Action Partnership • Companies trying to influence government • Six principles • Account for climate change • Create incentives • Be environmentally effective • Create economic opportunity & advantage • Be fair to impacted sectors • Reward early action

33. Green Buildings -- LEED • USGBC • LEED Certification • EB – NC – CI – CS – H – ND

34. Measuring Your Success – With GEMI • What is material 1. Understand context 2. Assess issues 3. Develop key objectives • What and how to measure 4. Define key performance indicators and metrics • How to assure effectiveness 5. Evaluate and communicate metrics 6. Evaluate integration and improvement

35. Why Do Companies Seek Sustainability? • Economics • Image • Marketing • Social Consciousness • Concern for the Environment • Achieve Competitive Advantage • Survival

36. The Importance of Commitment • Board Commitment • Officer Commitment • Manager Commitment • Employee Commitment

37. What Are Some Companies Doing – Or Not Doing • Acquiring Sustainable Companies • General Electric • Panasonic (Matsushita) • Interface • USCAP – or -- CEED • Shell • Terra Choice Study

38. Why Sustainability Has Not Made a Breakthrough “There is an important job to be done, and Everybody expects that Somebody would do it. Anybody could do it, but Nobody did it. Somebody gets angry about that because it is Everybody’s job. Everybody thinks that Anybody should do it, but Nobody realizes that Everybody would not do it. It ends up that Everybody blames Somebody when Nobody does what Anybody has to do.”

39. Thank you for this opportunity! George P. Nassos george.nassos@iit.edu 312-906-6543