What does sustainability mean for biofuel producers today? How will it affect your business tomorrow?
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- Avice Bryan
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1 What does sustainability mean for biofuel producers today? How will it affect your business tomorrow?
2 How is sustainability defined today? The perception: Environmental only Is a label or fad Is an end-state Social The reality: Environmental (land, air, water) Social Responsibility and Community Contributions (employees, community involvement, jobs) Economics and Profitability (strategic planning, succession, budgeting) Market Advantage Economic Environmental
3 Our sustainability problem The perception: Ethanol production takes away from food production Grain production causes water quality, soil, and land conversion problems Renewable does not always mean responsible for consumers The reality: Ethanol and biofuels are responsible fuels made from feed grain and produces useful (or valuable) co-products Proper land management is occurring/improving, we just cannot capture it objectively and thus, cannot reflect the carbon sequestration opportunities Grain producers and plant managers are practicing good management techniques, but don t have a mechanism to report this like other sectors do 3
4 The future of biofuels Our consumer: Millennial (age 18 34) and Gen Z (new drivers) Buying Cars with Flex Fuel Option Becoming Parents Have never lived without Internet Care about social outcomes, the environment Want to connect with brands and companies based on verified facts Responsible Transparent Sustainable Local Stewards Connect their social conscious more with their purchases than voting 4
5 The pull is real Exceeded $1.5B in U.S. sales of products in its Sustainable Leaders Program. Products in its Made to Matter collection grew 150% faster than growth elsewhere. Its Sustainable Living Brands accounted for half of the company s growth in 2014, grew twice as fast as the rest of the business, and experienced 30% higher growth than other brands in It was named by Forbes as one of the best small companies in America in part for its progressive commitment to sustainability. Sources: Sustainable Brands, Green Giants 5
6 Responsible, Sustainable Fuel Transportation Warehouses Logistics Associations Universities Agronomists Accountants Consultants Our Industry: Biofuel Producers and Plants Inputs Technology Equipment Fuel Retailers Obligated Parties Fuel Blenders 6
7 How sustainability is being measured
8 Responsible as an Industry Education Strategy Leadership Marketing Position Leverage, build upon Power by People to market sustainable, responsible fuel sources Develop Industry Framework to define and measure what sustainable and responsible means Set Industry Goals and Initiatives to publicly commit as an industry leadership, responsibility, stewardship 8
9 Responsible at the Plant Measured Outcomes Business Growth Return on Investment Efficiency improvements in water use, energy use, and steam are sustainable and responsible but how is your business measuring and more importantly, sharing these advancements with customers? Creation of stable, well-paid, safe jobs in rural, local communities in the U.S. Co-products provide high-quality energy and protein for livestock. 9
10 Percent Score Responsible on the Farm Company X Key: Environment Social Other/Legal Economic 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Modules 10
11 Percent Alignment Are we meeting expectations? 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Market Alignment Profile Key: Multi-stakeholder Buyer Organization 11
12 Material for your customers, stakeholders, consumers What to focus on Set improvement goals Take measurable actions Design a plan Material for your business 12
13 Sustainability topics for biofuel production Irrigation (if applicable) Fertilizer Equipment Weed and Pest Mgmt Efficient Practices (on-farm management) Worker Safety Employees Facilities Energy Water Technology Efficiency (plant production) Output and Production Economic Vitality Co- Products/ Resource Recovery Community Involvement Carbon Intensity
14 What does a sustainability plan capture? Corporate policies, goals, material topics Baseline assessment: Data collection Business strengths and weaknesses How to aggregate and report data that brings value Financial and profitability strategies Projections on: Climate Water Land use, natural resources Prioritized plan of action in areas of higher risk
15 Integrating sustainability into your business Board of Directors / Executive Management Level Annual and Strategic Planning Procurement requirements and supplier codes Budgeting Modeling and Projections
16 Today and Tomorrow Industry Trust and Loyalty Retailer Engagement Consumer Engagement Sustainability Expanded Opportunities (Market Share) New Opportunities (New Customers) Grain Supplier Engagement 16
17 Our Call to Action We have an opportunity to capture consumers: Education and Transparency Industry Commitment and Framework Ag Production / Supplier Engagement Plant Engagement We have to act to responsibly intensify and grow our industry. Sustainable intensification is supported by practical environmental organizations. 17
18 Thank You 1605 N. Waterfront Parkway Suite 200 Wichita, KS Phone: EMILY JOHANNES SUSTAINABILITY AND RESOURCEMAX DIRECTOR 503 2nd Street NE Washington, DC Phone:
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