11/17/2014. Raldu Nel Operationalising Sustainable Development Strategy - Framing the Business Case of Future Compliance Blank Canvas International
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1 Raldu Nel Operationalising Sustainable Development Strategy - Framing the Business Case of Future Compliance Blank Canvas International Operationalising Sustainable Development Strategy - Framing the Business Case of Future Long Term Waves Beyond Compliance Smart companies now treat sustainability as innovation's new frontier ~Harvard Business Review '93% of CEO's see sustainability as important to their company's future success. Yet, most do not know how to embed sustainability into their company. ~NBS - Network for Business Sustainability Sustainability is no longer only a term requiring compliance, but is globally recognised as a key business driver in Corporate Strategies, underpins Innovation There is a realization amongst many companies that to ensure a sustainable business into the 21st century requires a shift from business as usual to innovative, out-of-the-box thinking for a Thrivable Future. The South African mining industry needs to start doing the extraordinary to elevate the industry s thinking on sustainability, as it moves into the future. A fundamental shift from Business a Usual to Sustainable Mining is required in the Global Mining Industry today. Driving sustainable development performance is a critical success factor in business strategies, with most major mineral companies already pursuing comprehensive sustainability programs and development policies. 1
2 Transformation Roadmap towards a Sustainable Future 1 Current state assessment Business Strategy -Material Issues (Risks) -Opportunities Sustainable Development Strategy Sustainability structure Readiness for Change Capability -Innovation -Design -Systems Thinking 3 GAP Analysis Bridging the Gap Roadmap per Strategic Focus Area Focus Areas (Integrate) Implement (Operationalise) Ideal future state Future Compliance all Stakeholders -Profitable & Competitive Business -Environmental LTO -Social LTO -Regulatory LTO Designing for Abundance Circular Value Chain Inclusive Stakeholder Value Current Reality Compliance Sustainability Communication Reporting & Compliance Innovation Design Systems Thinking! Blank Canvas International (Pty) Ltd and Strategic Associates. Unpublished proprietary work available only under license. All rights reserved. Global ecological IM-balance The world is already living above its means in terms of Ecological Resources Growth Type Core Growth Disruptive Growth Related Jobs Growth Brief Summary Existing jobs for existing customers. Build and develop more value into core products, services and solutions. Existing jobs for new customers New solutions that deal with a family of JTBD at existing and new customers China s per capita ecological footprint is currently 81% of the global average If all the world s inhabitants lived like an average resident of China, a bio-capacity equivalent of 1,2 earths would be required to keep up with humanity s consumption (includes mining) and CO 2 emissions Meanwhile, humanity as a whole requires the equivalent of 1,5 earths to meet its current level of consumption This does not allow for significant emerging and developing country development according to current models New Jobs Growth Jobs that that are unmet or poorly met that require solutions -The Innovators Toolkit Published by: John Wiley and Sons) & Dr. Phil Samuel -System Pressures and Trends Cambridge David Rice 2
3 Global Business Performance Expectation Current Reality: Focus on Infrastructure/ Job Creation / Shareholder Value Shareholder Value The social responsibility of business is to maximize its profits Milton Friedman Stakeholder Value The corporation must be seen as an institution engaged in mobilizing resources to create wealth and benefits for all its stakeholders. Edward Freeman Shared Value Creating economic value in a way that also creates value for society by addressing its needs and challenges. Michael Porter = Inclusive Wealth We can t solve problems by using the same kind of thinking we used when we created them. ~ Albert Einstein -The Innovators Toolkit (Published by: John Wiley and Sons) & Dr. Phil Samuel ( NEW ) Thinking: Innovation, Design, Systems Thinking! Responsible Leadership - Sustainable Economic activity > LOM i.e. Inclusive Wealth. Status of Resource Industry Projects Status of Resource Industry Projects - Continue Source: ERM Analysis Source: ERM Analysis 3
4 Status of Resource Industry Projects Continue 2 SD Strategy IFR - Future Compliance Source: ERM Analysis Circular Economy SD Step Change - Vision 2050 WBCSD Figure 1: The linear and circular models of the economy (Ellen MacArthur Foundation) 4
5 Circular Economy SD Step Change Figure 1: The linear and circular models of the economy (Ellen MacArthur Foundation) Integrated Approach to Sustainable Development SFA s: -Energy efficiency and Carbon; -Water Management and Efficiency; -Environmental License to Operate -Social License to Operate; -Workforce of the Future 5
6 Disruptive Technologies Convergence -Frost & Sullivan, Co-alition Partner of SoA Trusted Collaboration & Partnerships All Stakeholders We thrive and survive on planet earth as a single human family. And one of our main responsibilities is to leave successor generations a sustainable future. - Kofi Annan, Former UN Secretary General 6
7 A big thank you to all our collaborators making this conversation #sustainability summit 7
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