THE GREEN TO GOLD BUSINESS PLAYBOOK HOW TO IMPLEMENT SUSTAINABILITY PRACTICES FOR BOTTOM-LINE RESULTS IN EVERY BUSINESS FUNCTION DANIEL C. ESTY P. J. SIMMONS WILEY John Wiley & Sons, Inc.This book is printed on acid-free paper mde from zoo percent post consumer recycled pulp with soy ink. © (Copyright © 20xr by Daniel C. Esty and P.J. Simmons. All rights reserved, Published by John Wiley & Sons, Inc., Hoboken, New Jersey. | Published simultancousy in Canada, t No part of tis publication may be reproduced, stored ina retrieval system, or éransmitted in any i form or by any mesns, electronic, mechanical; photocopying, recordin, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment ofthe appropriate per-copy fe to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 646-8600, oF on the web at www.copytight.com, Requests ‘tw the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc. rx River Street Hoboken, NJ 07030, (201) 748-601r, fax (201) 748-6008, or online at huspulwww wiley. comigolpermissions, Limit of Liabilty/Disclaimer of Warranty: While the publisher and author have used their best forts in preparing this book, they make no representations or warranties with respect tothe Jeteness ofthe contents ofthis oak and specifically discla ied warranties of merchantability or finess for a particular purpose. No warranty may be created or ‘extended by sales representatives or writen sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consul witha professional wiere appropriate. Neither the publisher nor author shall be liable for any loss of proft or anyother commercial damages, including but not limited to special, incidental, consequential, or other damages For general information on ovr other products and servies or fo technical support, plesse contact our Customer Care Department within the United States at (Boo) 762-2974, outside the United State at (317) 572-3993 0 fax (317) 572-4002 Wiley also publishes its books ina variety of electronic formats. Some content that appest ia print may not be available in electronic books. For more information about Wiley products, visit four web ste at wwww-siley.com. Library of Congress Cataloging-in-Publication Data: Esty, Daniel, 1959~ Tae green to gold busines playbook : how to implement sustainability practices for bottom-line results in every business function / Daniel Esty, PJ. Simmons. poem, Tcl index. ISBN 978-0-470-59075-r(cloth);_ISBN 978-r-118-o1072-3 (ebk); ISBN 978-1-118-01088-g (ebkls ISBN 978-1-118-o1089-1 (ebk) 1. Industrial management—Environmental aspects, 2. Corporations-—Eavizonmental aspects. 3. Business enterprises —Ravironmental aspects. I, Simmons, P. J 1967~ UT HD30.255.8885 2012 658.4'083—de 222010042187 Printed in the Unica States of Ametica, rote) sa oatsChapter 4 Making the Internal Business Case for i Going Greener sg bee looking oves your ‘geen proposal. I's fe, just fne—P'm sure eh | ait People feel real ood about the company... hould go over bis eau oe Bo eer 00%» But se the folks that I report to—they don't ent prety So let me ask you: Why would I sign this? Skeptical exeentive in 2009 IBM TV commercial ‘Whether trying to broaden intemal support for a sustainability. strat- { BY OF Pushing a particular environmental project, you should anticipate skepticism, Every company faces limits in terms of ‘management time and attention as well as money. Eco-Advant: face snPettion from other potential uses of scarce corporate resources Top management will expect details on how a “grees” proposal ad- Wanees core business objectives. CFOs and others who control the Purse strings will want to see hard, dollars-and-centsjustfcetions before lend- i real PPO £0 any new investments. Shore-staffed line managers will i hae refforts that further stretch their departments if they don | what’s in it for them, Getting clear on the business case for bringing an environment of sus- critical. Making your case will be easier ; When the numbers are straightforward and your proposal Promises a obvious bottom-line benefits? How, for example, do you make the fi- ‘ancial case for phasing out a chemical that regulators ‘may not ban for vlogs mei ever? How do you justify the investment in an ene ployee eco-training effore that could create a more inovaciy, culture? How do you calculate the potential ROI ofa brand-enhancing leadership Play, such as being the frst company in your industry re pledge carbon neutrality?