DuPont de Nemours, Inc. · NYSE:DD
DuPont de Nemours — DuPont — ESG Presentation (August 2011)
25 slides from DuPont de Nemours's sustainability presentation, Aug 2, 2011
Slide 1: How to get the most value out of your sustainability strategy?
How to get the most value out of your sustainability strategy? Davide Vassallo Global Practice Leader Leadership Forum Virginia Beach, 2nd August 2011
Slide 2: What is a sustainability strategy?
2 • What is a sustainability strategy? • Why modern corporations must have a sustainability strategy? • Which are the steps to build your sustainability strategy and implement it successfully? • What a success story looks like? Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPo
Slide 3: What is a sustainability strategy?
3 What is a sustainability strategy? It’s… It’s not… A systemic approach An executive leadership exercise A comprehensive review of internal A sustainability report and external business constraints and opportunities A communication plan A mid- to long-tem path for the A website company A social pro
Slide 4: Common pitfalls
4 Common pitfalls Absence of the business case Unclear vision with no set goal for a definite time period No leadership commitment and accountability Lack of communication & understanding between the corporate leadership and the rest of the organization Initiatives are not prioritized based on the r
Slide 5: How to maximize the value capture? Model 1
5 How to maximize the value capture? Model 1: The corporation provides a general direction, and The Corporation the businesses pursue Reduce footprint their environmental & sustainability plans Business Business Business Unit 1 Unit 2 Unit 3 Projects: Projects: Projects: $ Air Water $ Air Water $ Ai
Slide 6: How to maximize the value capture? Model 2
6 How to maximize the value capture? Model 2: Corporate Strategy, supported by a management system The Corporation that integrates Air sustainability planning Goals: Water into the core business Energy process, and focuses on optimizing resource allocation and maximizing returns Business Business Bu
Slide 7: Why modern corporations must have a sustainability strategy?
7 • What is a sustainability strategy? • Why modern corporations must have a sustainability strategy? • Which are the steps to build your sustainability strategy and implement it successfully? • What a success story looks like? Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPo
Slide 8: A maturing set of external drivers are pressuring companies for more sustainability
8 A maturing set of external drivers are pressuring companies for more sustainability External drivers 1. Resource costs Whilst resource costs have decreased since highs of 2008, volatility and volatility price forcast is still a driver for resource efficiency Regulatory and fiscal measures are inte
Slide 9: 1. Resource costs volatility
1. Resource costs volatility 9 Rising costs are focussing greater attention on resource efficiency Oil prices per barrel Cost of materials "The high oil prices will encourage us all to “Steel prices will continue to increase focus on renewable energy. We will have to in the line of raw material cost
Slide 10: 2. Public policy: cost of compliance as EBITDA %
2. Public policy 10 The cost of compliance differs widely depending on the industries Cost of CO2 Regulatory Compliance as a percentage of EBITDA >50.00% >50.00% 50% Maximum Case 46.25% Cost of Compliance as EBITDA% Minimum Case 40% 37.85% 30% 19.21% 20% 12.90% 11.99% 10% 2% 2.72% 2.00% 2.91% 0.43%
Slide 11: 3. Access to capital
3. Access to capital 11 The global Socially Responsible Investment market is expected to reach 15% of the total assets under management in 2015 12000 Global SRI markets (2007) 10000 8000 8% Billion € 6000 4000 2000 38% 54% 0 2002 2005 2007 2009 2015 7000 Europe US Rest of the World 6000 5000 Billion
Slide 12: 4. Public accountability
4. Public accountability 12 The number of Fortune Global 250 companies disclosing non-financial data more than doubled since 1998 Percentage of Fortune Global 250 publishing a Sustainability Report 100% 80% 60% 40% 20% GRI – G1 GRI – G2 GRI – G3 1999 2002 2006 0% 1998 2001 2004 2008 GRI: Global Repo
Slide 13: 5. Competition
5. Competition 13 People have strong awareness of sustainability and favor environmentally friendly products, transportation mode… etc Urgency of sustainability It's already too late 18% perception Today 59% Next future 21% Very far future 2% Commitment towards the environment 10% Daily habits (purc
Slide 14: Industry leaders are committed to emerge from the pack
14 In this context, industry leaders are committed to emerge from the pack looking at top line benefit Risk Mitigation Cost Reduction Revenue generation Competitive advantage Influence on Society Awareness and Operational efficiency Product innovation and the competitive Compliance landscape Licence
Slide 15: Steps to build your sustainability strategy
15 • What is a sustainability strategy? • Why modern corporations must have a sustainability strategy? • Which are the steps to build your sustainability strategy and implement it successfully? • What a success story looks like? Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuP
Slide 16: Success will depend on your ability to create and execute the business case
16 Success will depend on your ability to create and execute the business case for sustainability 5 STEPS BENEFITS 1. Build the business case for Optimal allocation of resources sustainability to ensure the highest return on 2. Understand the key drivers in your sustainability investments sector and
Slide 17: 1. Build the business case for sustainability
17 1. Build the business case for sustainability, identifying and quantifying its tangible and intangible value VALUE …for all the company Stakeholder stakeholders. Shareholder Market Share Paid Dividends …generating tangible Reputation Free Cash Flow & intangible value… Leadership Cost of Capital …
Slide 18: 2. Understand the impact of the key drivers on your company
18 2. Understand the impact of the key drivers on your company and combine them with your current performance Key external drivers for strategic positioning Regulation How are regulations influencing your business now and in the future? Stakeholder expectations Competition What do stakeholders expec
Slide 19: 3. Set your ambition and integrate sustainability into business vision
19 3. Set your ambition and integrate sustainability into business vision, strategy and objectives Leading edge Sustainability Strategy Sustainability Performance Vision Strategy Zone of Implementation roadmap acceptability Unlock value Sustain results Trailing edge 2000 2011 2020 Timeline Copyright
Slide 20: 4. Implement your corporate sustainability management system
20 4. Implement your corporate sustainability management system to mitigate risks, reduce costs, create options and build stakeholder’s value Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or
Slide 21: 5. Develop competencies and support behavioral and cultural change
21 5. Develop competencies and support behavioral, mindsets and cultural change in order to sustain your results Commitment Strong Policies & principles Leadership Performance Goals & plans People Supportive staff Appropriate Accountability Management Organizational Integrated structure Culture Stru
Slide 22: What a success story looks like
22 • What is a sustainability strategy? • Why modern corporations must have a sustainability strategy? • Which are the steps to build your sustainability strategy and implement it successfully? • What a success story looks like? Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuP
Slide 23: Top sustainable companies performed better than market average
23 Top 100 sustainable companies performed better than market average in the last 5 years Copyright © 2011 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, and The miracles of science™ are registered trademarks or trademarks of DuPont or its affiliates.
Slide 24: Global players found the way to un-lock the value of their sustainability strategy
24 Global players found the way to un-lock the value of their sustainability strategy Pursuing resource effinciency in the supply chain, Walmart has identified $1.5 billion savings amongst top 500 suppliers Improving operations and energy Investing in Ecoimagination, enabled efficiency RTA saved 4.2
Slide 25: Conclusion
Conclusion 25 • What is a sustainability strategy? It is a yearly exercise to assess and weight into your business strategy, environmental and social long term opportunities and risks • Why modern corporations must have a sustainability strategy? To capture top line benefit and to anticipate costly