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The Copeland Program, CEDA, August 2012
Darren Bilsborough, Director rIGAR Group
Adjunct Professor of Sustainability, Curtin University
Sustainability, Risk and
Leadership
Its Rough out There
More from less. Depleting natural resources
and increasing demand for those resources
through economic and population growth will
see a focus on resource use efficiency.
A personal touch. Innovation aimed at tailoring
and targeting services.
Divergent demographics. OECD countries are
ageing, with lifestyle and diet related health
problems. Poor countries have high fertility rates
and not enough food for millions.
On the move. People are changing jobs, careers
and houses; commuting further to work and
undertaking more world travel.
i World. Computing power and memory storage
are improving rapidly, with many more devices
connected to the internet.
A megatrend is based on the aggregation
and synthesis of multiple trends.
Impacts for Strategy:
• Identifies need for our science to respond to trends in resource use efficiency, services, productivity and changing demographics
• Reinforces need to respond to provide a workplace that is innovative – allowing us to attract and retain the best
• Mainstreams need to respond to i-World through enhanced e-Research, e-Enablement, digitisation of collections and access to
relevant global data databases and observational networks
• Mainstreams the requirement to respond to the growth in social media and e-communications
Megatrends
Fore-sighting has highlighted More from Less as a key
strategic trend, driving focus towards sustainability and
resource efficiency
“Megashocks”
Fore-sighting indicates a number of risks that will require
a strategic science response
• asset price collapse
• slowing Chinese economy
• oil and gas price spikes
• extreme climate change
related weather
• pandemic
• biodiversity loss
• terrorism
• nanotechnology risks.
World Economic Forum Megashocks Map 2009
The Next Wave?
The Argument for why is compelling
The graph above measures the monthly total return of the Global 100 “100 Most
Sustainable Companies.” and the MSCI All Country World Index (ACWI) in USD from
1/2/2005 to 30/11/2011. Over this period, the Global 100 returned 42.54% compared
to 29.52% for the MSCI ACWI.
Source: Corporate Knights Global 100 website
Winds of Change - Corporate Responsibility
CSR is an issue whose time has come –
it is my opinion that developments in
this area are not a short term trend,
but represent a fundamental shift in
how we do business.
Senator the Hon Nick Sherry Minister for
Superannuation and Corporate Law in a
speech to the CEDA, October 2008.
Corporate Responsibility - Reframed
Corporate responsibility is usually
described in terms of a company
considering, managing and balancing
the economic, social and
environmental impacts of its activities.
It is about assessing and managing
risks, pursuing opportunities and
creating corporate value in areas
beyond what would traditionally be
regarded as core business.
More potential problems than you can poke a stick at relating to:-
City Vulnerability
Sustainability as a substitute word for Governance.
 What if we talked about measurable governance not only in terms
of financial outcomes (but from the viewpoint of the triple bottom
line of financial, social and environmental)? Unfortunately most
treat the TBL as silos, the key is integration.
Sustainability Reporting does some of this, but the real issue here
is identification of value.
 How do we translate strategic intent into long term value creation
Sustainability thinking provides a framework for navigating
complex problems
 Corporate Social Responsibility (CSR): How can CSR outcomes
align with business strategy and success?
Treat CSR programs as investments and measure ROI
GovernanceGovernance and Leadership
More potential problems than you can poke a stick at relating to:-
City Vulnerability
 What risks are you currently not managing?
Are you future proofed?
 Where there is a risk there is an opportunity.
Sustainability thinking provides opportunity for
identifying value that has been previously
unrealised
 Problem solving tends to be linear in its application
Sustainability thinking embraces ambiguity and
recognises the solution pathway is unlikely to be
linear
RiskSustainability as a Risk Management Framework
Bringing it all Together
The Future Happens Regardless
Do we choose to:
 exert control over the future?
 avert known adverse outcomes?
 minimise unexpected adverse outcomes?
 reduce risk?
If yes, then we must:
 take accountability for the future
 discharge this accountability
If yes, then we must control the process that creates
outcomes
The Mainstreaming of Sustainability or
Managing the Future
Leadership
From:
I am subject to a future determined by others
I am subject to the process that creates outcomes
To:
I own the future
I control the process that creates outcomes
The Mainstreaming of Sustainability or
Managing the Future
The Process that Creates Outcomes
Why? – Context
What? - Vision
How? - Strategy
Do
Org Structure, Systems, Behaviour, Outcomes
These elements are always there and in equilibrium!
Controlling them requires integration of
Leadership and Governance
Intent
The Mainstreaming of Sustainability or
Managing the Future
Integrating Leadership and Governance
Leadership
Building a Bridge to the Future
Governance
Processes for creating intent and ensuring linked outcomes
Practised with Rigour and Discipline
Underpinned by rational and informed decision-making
The Mainstreaming of Sustainability or
Managing the Future
Building a Bridge to the Future
1. Set the Context
2. Innovate a future destination
3. Script a path to get there
4. Generate and maintain motion
5. Involve, energise and collaborate
6. Knowledge + Opportunity =
Accountability
7. Start at the top and work down
8. Then everyone becomes a Leader!
The Mainstreaming of Sustainability or
Managing the Future
The Creation of Intent
Common Purpose through Unifying Context
To make the world a better place
To give more than we take
To consume less than we generate
To leave behind more than we inherit
The growth and creation of intergenerational assets
Economic and Social and Environmental
And not Or
Balance , not compromise !
Intergenerational
Assets
The Mainstreaming of Sustainability or
Managing the Future
Creation of Intergenerational Assets Unpacked
1. Profit Imperative
o Value of assets tomorrow exceeds value today;
o Value of outcomes exceeds expenses;
o Minimal waste and inefficiency
2. Timeframe Imperative
o Short, Medium and Long Term
3. Value Imperative
o Everything has value, explicit or implicit, always contextual
4. Integration Imperative
o and not or ;
o balance not compromise
Nothing more nor less than Good Business!
The Mainstreaming of Sustainability or
Managing the Future
Conclusions
1. Sustainability must inform context
2. Sustainability is about integration – everything
right all the time, balance not compromise, etc.
3. Rigorous governance is essential
4. As such must be built from the top down.
5. There are no secrets about how to get things
done – management/leadership 101, pure
vanilla!!
The Big Secret - Just Do It! (refer Curitiba)

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Copeland Lecture August 2012

  • 1. The Copeland Program, CEDA, August 2012 Darren Bilsborough, Director rIGAR Group Adjunct Professor of Sustainability, Curtin University Sustainability, Risk and Leadership
  • 3. More from less. Depleting natural resources and increasing demand for those resources through economic and population growth will see a focus on resource use efficiency. A personal touch. Innovation aimed at tailoring and targeting services. Divergent demographics. OECD countries are ageing, with lifestyle and diet related health problems. Poor countries have high fertility rates and not enough food for millions. On the move. People are changing jobs, careers and houses; commuting further to work and undertaking more world travel. i World. Computing power and memory storage are improving rapidly, with many more devices connected to the internet. A megatrend is based on the aggregation and synthesis of multiple trends. Impacts for Strategy: • Identifies need for our science to respond to trends in resource use efficiency, services, productivity and changing demographics • Reinforces need to respond to provide a workplace that is innovative – allowing us to attract and retain the best • Mainstreams need to respond to i-World through enhanced e-Research, e-Enablement, digitisation of collections and access to relevant global data databases and observational networks • Mainstreams the requirement to respond to the growth in social media and e-communications Megatrends Fore-sighting has highlighted More from Less as a key strategic trend, driving focus towards sustainability and resource efficiency
  • 4. “Megashocks” Fore-sighting indicates a number of risks that will require a strategic science response • asset price collapse • slowing Chinese economy • oil and gas price spikes • extreme climate change related weather • pandemic • biodiversity loss • terrorism • nanotechnology risks. World Economic Forum Megashocks Map 2009
  • 6. The Argument for why is compelling The graph above measures the monthly total return of the Global 100 “100 Most Sustainable Companies.” and the MSCI All Country World Index (ACWI) in USD from 1/2/2005 to 30/11/2011. Over this period, the Global 100 returned 42.54% compared to 29.52% for the MSCI ACWI. Source: Corporate Knights Global 100 website
  • 7. Winds of Change - Corporate Responsibility CSR is an issue whose time has come – it is my opinion that developments in this area are not a short term trend, but represent a fundamental shift in how we do business. Senator the Hon Nick Sherry Minister for Superannuation and Corporate Law in a speech to the CEDA, October 2008.
  • 8. Corporate Responsibility - Reframed Corporate responsibility is usually described in terms of a company considering, managing and balancing the economic, social and environmental impacts of its activities. It is about assessing and managing risks, pursuing opportunities and creating corporate value in areas beyond what would traditionally be regarded as core business.
  • 9. More potential problems than you can poke a stick at relating to:- City Vulnerability Sustainability as a substitute word for Governance.  What if we talked about measurable governance not only in terms of financial outcomes (but from the viewpoint of the triple bottom line of financial, social and environmental)? Unfortunately most treat the TBL as silos, the key is integration. Sustainability Reporting does some of this, but the real issue here is identification of value.  How do we translate strategic intent into long term value creation Sustainability thinking provides a framework for navigating complex problems  Corporate Social Responsibility (CSR): How can CSR outcomes align with business strategy and success? Treat CSR programs as investments and measure ROI GovernanceGovernance and Leadership
  • 10. More potential problems than you can poke a stick at relating to:- City Vulnerability  What risks are you currently not managing? Are you future proofed?  Where there is a risk there is an opportunity. Sustainability thinking provides opportunity for identifying value that has been previously unrealised  Problem solving tends to be linear in its application Sustainability thinking embraces ambiguity and recognises the solution pathway is unlikely to be linear RiskSustainability as a Risk Management Framework
  • 11. Bringing it all Together The Future Happens Regardless Do we choose to:  exert control over the future?  avert known adverse outcomes?  minimise unexpected adverse outcomes?  reduce risk? If yes, then we must:  take accountability for the future  discharge this accountability If yes, then we must control the process that creates outcomes
  • 12. The Mainstreaming of Sustainability or Managing the Future Leadership From: I am subject to a future determined by others I am subject to the process that creates outcomes To: I own the future I control the process that creates outcomes
  • 13. The Mainstreaming of Sustainability or Managing the Future The Process that Creates Outcomes Why? – Context What? - Vision How? - Strategy Do Org Structure, Systems, Behaviour, Outcomes These elements are always there and in equilibrium! Controlling them requires integration of Leadership and Governance Intent
  • 14. The Mainstreaming of Sustainability or Managing the Future Integrating Leadership and Governance Leadership Building a Bridge to the Future Governance Processes for creating intent and ensuring linked outcomes Practised with Rigour and Discipline Underpinned by rational and informed decision-making
  • 15. The Mainstreaming of Sustainability or Managing the Future Building a Bridge to the Future 1. Set the Context 2. Innovate a future destination 3. Script a path to get there 4. Generate and maintain motion 5. Involve, energise and collaborate 6. Knowledge + Opportunity = Accountability 7. Start at the top and work down 8. Then everyone becomes a Leader!
  • 16. The Mainstreaming of Sustainability or Managing the Future The Creation of Intent Common Purpose through Unifying Context To make the world a better place To give more than we take To consume less than we generate To leave behind more than we inherit The growth and creation of intergenerational assets Economic and Social and Environmental And not Or Balance , not compromise !
  • 17.
  • 19. The Mainstreaming of Sustainability or Managing the Future Creation of Intergenerational Assets Unpacked 1. Profit Imperative o Value of assets tomorrow exceeds value today; o Value of outcomes exceeds expenses; o Minimal waste and inefficiency 2. Timeframe Imperative o Short, Medium and Long Term 3. Value Imperative o Everything has value, explicit or implicit, always contextual 4. Integration Imperative o and not or ; o balance not compromise Nothing more nor less than Good Business!
  • 20. The Mainstreaming of Sustainability or Managing the Future Conclusions 1. Sustainability must inform context 2. Sustainability is about integration – everything right all the time, balance not compromise, etc. 3. Rigorous governance is essential 4. As such must be built from the top down. 5. There are no secrets about how to get things done – management/leadership 101, pure vanilla!! The Big Secret - Just Do It! (refer Curitiba)