What's Brewing: Embedding a Unified Business Case Approach to Drive Product, Brand, Marketing and Operations at the Same Time
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These slides were presented at the Sustainable Brands London 2013 Conference, to view the associated video or listen to the audio of the presentation please visit www.sustainablebrands.com/digital_learning/packaging/whats-brewing-embedding-unified-business-case-approach-drive-product-bran
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What's Brewing: Embedding a Unified Business Case Approach to Drive Product, Brand, Marketing and Operations at the Same Time
- 2. Sustainability WHO CARES?!? Jim Hanna director environmental impact starbucks coffee company 2
- 3. A Dilemma… The term “Business case for sustainability” has already become cliché Those that get it – moved on to brand engagement, innovation, story-telling, transparency, circular economy, shared value, etc. 3
- 4. But The Business Case Still Matters Impact The footprint I get it! 4
- 5. Our Challenge… • • To the middle of the bell curve, SB conversations are still periphery at best While we look over the horizon, we must also look back 5
- 6. Our Challenge… • • As we adopt a new language, we must remain bilingual to those not yet literate Even the most forward thinking companies must continuously make the business case internally 6
- 7. Our Company 60 million customers/week 17,000 retail stores ~200,000 partners 62 countries Starbucks Confidential – INTERNAL USE
- 8. At Starbucks, real sustainability = climate mitigation As a company that relies on a specialty agricultural product, climate change poses a potential direct threat to our business Starbucks Confidential – INTERNAL USE
- 9. 75% of Starbucks controllable environmental footprint is from the operation of our stores Starbucks Confidential – INTERNAL USE
- 10. roasting operations, refrigerants, aircraft, nitrous oxide 25% 75% Store energy use Starbucks Confidential – INTERNAL USE
- 11. Green Building Pledge All company operated new stores will be green certified All company operated stores will be 25% more energy efficient, use 25% less water, use 100% renewable energy, use locally-sourced & salvaged materials Starbucks Confidential – INTERNAL USE
- 12. Where Do We Focus? Starbucks Business Drivers for Sustainability Reduced operating costs Capacity building in our supply chain Starbucks Confidential – INTERNAL USE
- 13. Where Do We Focus? Starbucks Business Drivers for Sustainability Larger share of emerging customer demographic Greater brand love & existing customer loyalty Starbucks Confidential – INTERNAL USE
- 14. Where Do We Focus? Starbucks Business Drivers for Sustainability Employer of choice & increased retention A baseline of credibility that provides: a negotiating tool with policymakers mitigated risk from NGOs and media added marketing dimension Starbucks Confidential – INTERNAL USE
- 15. Where Do We Focus? Starbucks Business Drivers for Sustainability A license to operate Starbucks Confidential – INTERNAL USE
- 16. A Couple of Examples… making the business case our stores 12/16/09 © STARBUCKS COFFEE COMPANY 2009. CONFIDENTIAL – FOR INTERNAL USE ONLY our cups Starbucks Confidential – INTERNAL USE
- 17. Green Building Lesson Learned: speak the language of business
- 18. Initial focus on green metrics & values Core value of the company Part of our DNA & mission Reduce our carbon footprint
- 19. Reset focus to the business Core Value of the company Part of our DNA & mission Reduce our carbon footprint
- 20. Recycling Lesson Learned: Perception = Reality (and you’d better not ignore it)
- 21. 4 billion SBUX cups 21
- 22. 4 billion SBUX cups 500 billion globally 22
- 23. roasting operations, refrigerants, aircraft, nitrous oxide cups 25% 75% Store energy use Starbucks Confidential – INTERNAL USE
- 24. Where Do We Focus? Starbucks Business Drivers for Sustainability A license to operate Fukuoka Ohori Park Fukuoka City, Japan Starbucks Confidential – INTERNAL USE
- 25. License to Operate – Driven by Customer & Stakeholder Perceptions Although packaging waste is small part of our footprint, it is Starbucks #1 environmental issue to our customers and stakeholders Proactively addressing cup recycling is the price of entry to give us credibility to discuss more significant environmental leadership What’s your pain point?
- 26. Starbucks Goal – This Ends by 2015 1. Increase use of personal mugs 2. Increase ceramics in-store 3. Customer facing recycling in all company-owned stores 4. Recyclable single serve cups – wherever the cup goes
- 27. Some Final Advice from the coffee guy… Find your own drivers to sustainability (your “who cares”)
- 28. Some Final Advice from the coffee guy… Speak the language of business - try an exercise using no green words Demonstrate how sustainability supports business goals, not vice versa
- 29. Some Final Advice from the coffee guy… Figure out your unique niche – where can you lead that no one else can? Acknowledge and celebrate others’ leadership
- 30. Some Final Advice from the coffee guy… Choose transparency: invite media, NGOs, policymakers and competitors on your journeys
- 31. Some Final Advice from the coffee guy… Don’t worry about free riders Help the middle of the bell curve see the light