Posts tagged ‘sustainability’

June 21, 2010

Thoughts from SAP Sustainability in Business Summit

Back from a bit of a blogging hiatus!

I happened to be in Toronto a couple of weeks ago and was able to attend SAP Canada’s first Sustainability in Business Summit.  There were almost 300 attendees for full day of presentations, workshops and networking – all interested in learning more about how to make business more sustainable.

Starting the day was Dr. David Suzuki who had some very interesting and provocative points. In his introduction, he noted the very fact of his invitation was a sign of progress. Ten years ago he would have been barred at the door! He also mentioned that “the environmental movement grew up fighting, but all fights create losers. The task now is to build bridges” and events like the summit are a great step toward that.

His most inspiring points, for me, was a reminder that “the way we see the world shapes the way we treat it. Do we see homes or real estate? Sacred groves or sources of timber and pulp? Living veins of the planet or river power?” This is not to say we cannot make use of the Earth’s resources, but we need to be conscious of the choices we are making. And to remember that these are in fact choices – the society we live in is one that we collectively invented. And things we invent are things we can change.

The closing speaker, from Stewardship Ontario, illustrated this exact point. Stewardship Ontario are responsible for dealing with recycled materials from all manufacturers in Ontario. Currently manufacturers pay 50% of the cost of recycling and this will soon increase to 100% as part of a concept called “Extended Producer Responsibility”. The message to manufacturers now becomes “You made it. Consumers buy it. When they’re done with it, it’s your problem, not theirs.” Of course, this cost will ultimately be passed on to consumers.

As David Eaves mentioned in conversation at Vancouver Change Camp – consumers are the only people who really pay in the end. This signals a move to a world where externalities are brought into the cost and price structures of business. If consumers will be forced to pay the “true” cost – of energy, recycling, waste reclamation, GHG production, etc. – of a product, we will be well on the way to a more sustainable economy. “Disposable” fashions and products built with planned obsolescence will no longer be affordable in mass quantities. Consumer behaviour can change based on economics. Growth in business will have to come from other, more innovative business models. And that is a good thing.

Many thanks to Delvin Fletcher, Cory Coley-Christakos and the rest of the SAP team that made the event happen. I look forward to continuing this important conversation.

I’ll close with a quote from Goethe that David Suzuki used to start his keynote:

Whatever you can do or dream you can, begin it. Boldness has genius, power and magic in it. Begin it now!

And I promise not to have such a gap before my next post!

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February 5, 2010

Leveraging the Olympics for more sustainable transit

Nice article here on the Translink blog talking about SAP Vancouver’s prep for the Olympics. This has been a massive planning exercise for our company since the main office is on Mainland Street – what will be a pedestrian only zone for the duration of the Olympics and we are right down the street from a few of the main venues.

As part of the planning process, we tried to leverage the changes to inform employees about more sustainable transportation choices. We already have over 60% of employees walking, riding bikes or taking transit to work. The traffic, road closures and general chaos is a great chance to educate employees about commuting options.

For example,

SAP provides Vancouver employees with a transit pass subsidy that when coupled with the Employer Pass Program from TransLink, provides a 50% discount for transit passes.

All of this combines to make a real impact. This year, for the first time, SAP announced its performance to Carbon Reduction targets (reporting 16% reduction without using offsets) on the same day we announced our 2009 financial results. Will be nice when the day comes that this is expected, and regulated, behaviour for corporations worldwide rather than the exception it is today

November 8, 2009

The costs of consumerism

At the Portland State University International Conference on Business and Sustainability last week where I was speaking on Social Purchasing, two presentations crystallized an ongoing question I have had about consumer power, “green” business and sustainability in a consumer society in general.

Bill Wertz, Divisional Director of Community & Media Relations from Walmart spoke – quite openly – about their sustainability initiatives and challenges. Despite many progressives’ feelings about Walmart, their push for environmental labeling and standards is pushing the entire consumer packaged goods industry faster than any lobbyist could. Answering a question from the audience, he said that from Walmart’s experience, the biggest barrier to green purchasing is cost. Consumers are not yet willing to pay a premium for sustainable products – even if, as with CFLs, they will save money in the longer term.

In a following session, Libby Evans from Sustainable Harvest Coffee Importers, was talking about their efforts to create sustainable livelihood for coffee growers around the world. As part of that effort, they invest in technical and marketing training on the ground, encouraging farmers to grow to “standards” and command a premium price for organic or Fair Trade certification. In one case, this resulted in farmers increasing their payment from $1.10 per pound before to $1.74 after

These two approaches raise an interesting question: if producers in the developing world are hoping to maintain a sustainable livelihood through premium prices, and if consumers are not willing to pay those prices in the long run, what result will this have? What responsibility to consumers have to ensure their purchases are resulting in beneficial results? How do we raise awareness of the consequences of our relentless quest for cheap? How should we distribute the costs of providing sustainable livelihoods to those living at the bottom of the pyramid?

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