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Tbli sustainability as strategic final

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TBLI CONFERENCE™ is the prime annual global networking and learning event on Environment, Social, Governance (ESG) and Impact Investing. ...

TBLI CONFERENCE™ is the prime annual global networking and learning event on Environment, Social, Governance (ESG) and Impact Investing.

TBLI CONFERENCE USA New York 2013
Monday and Tuesday, June 17-18, 2013

Speakers:
Paul Rose
Vice President of the Royal Geographical Society
Richard L. Kauffman
Chairman for Energy Policy and Finance for the State of New York - Governor of New York's Office and Cabinet - United States of America
Martin Rapaport is chairman of the Rapaport Group and founder of the Rapaport Diamond Report

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    Tbli sustainability as strategic final Tbli sustainability as strategic final Presentation Transcript

    • Purpose Capital — Matter to the World 1 Sean Holt, Purpose Capital Sustainability Strategy as Critical to Performance Sustainability Strategy With a view to Performance
    • • Trending Issues • Trending Adoption • Trending Standards • But….are we doing enough?
    • Greater risk inter-dependencies Breakthrough Capitalism Report Volans 2013
    • World Economic Forum – Global Risks World Economic Forum, Global Risks Report 2012
    • • By 2030 – 30% more water – 40% more energy – 50% more food Shell Scenarios – Water-Energy-Food Nexus Shell International Ltd., 2012
    • Adoption: Global Players • 95% of 100 largest global companies issued sustainability reports in 2012 – Compare to 80% in 2008; 50% in 2005 (GRI 2012) • 62% of 378 global companies surveyed pursue sustainability strategies (KPMG 2011) • Concerns: accuracy and completeness of data, and relevance to financial performance.
    • When sustainability is a permanent fixture on management agenda…60% greater incidence of reported profit. When clear business cases for sustainability report are generated 300% greater incidence of reported profit. Importance of linking Sustainability to Performance The Innovation Bottom Line, 2013 MIT SMR-BCG, global survey 4,000 executives & managers, analysis based on 2,600 sub-sample set.
    • The Big Idea The Performance Frontier: Innovating for a Sustainable Strategy, Harvard Business Review May 2013
    • Importance of Sustainability to Stakeholders The Innovation Bottom Line, 2013 MIT SMR-BCG, global survey 4,000 executives & managers, analysis based on 2,600 sub-sample set. Benefits of sustainability Profit drivers from sustainability The Innovation Bottom Line, 2013, MIT SMR- BCG, global survey 4,000 executives & managers, analysis based on 2,600 sub-sample set. Sustainability Innovation and Reputation
    • Adoption: Mid-Size Companies Business4Better survey: 173 mid-sized cos. employing 100 – 5,000 • 66% desire to enhance or establish CSR programs • 60% focus CSR efforts on education, people-focused initiatives that cater to young people and development of workforces for future. • 50% CSR efforts are led by the executive leadership team. • Only 20% measure CSR success via financial impact. Conclusion: mid-sized companies are missing opportunities to tie sustainability to positive business performance. Business4Better Survey: Mid-sized Companies and Social Responsibility, March, 2013
    • B-Lab also tracks nearly 2,000 self-measuring “Other Sustainable Businesses” and nearly 100 sustainable investment firms, and will soon release B- Analytics, which integrates B-Corp Impact Assessment, GIIRS and IRIS metrics.
    • Trending Adoption: SGBs B-Lab Annual Report, 2012
    • Trends in Standards Integration or Fragmentation? IIRC “Consultation Draft” GRI releases G4 Sustainability Guidelines SASB Healthcare + Financial Services comment periods B Lab soft launch B-Analytics (B- Corp, GIIRS, IRIS metrics) • Complements or competitors? • More noise or better diversity in offerings to suit circumstances? • Should we expect to see integrated GRI-IIRC-SASB reports? Note: SASB provides standards for mandatory filings, whereas GISR, GRI, IIRC, B-Corp and GIIRS provide frameworks for voluntary reporting. April 2013 May 2013 GISR Beta Version Core Principals
    • Risks of Poor Planning & Reporting • Investors, insurers, customers and employees are demanding more concise, value-relevant information. • Failure may result in: – Misunderstood growth and risk management strategies – Higher capital costs over time – Higher insurance premiums over time – Difficulty attracting/retaining employees and customers who care about sustainability
    • Getting it Right – Organizational Benefits Understanding Transformation: Building the Business Case for Integrated Reporting; IIRC 2013
    • Getting it Right – Stakeholder Benefits Understanding Transformation: Building the Business Case for Integrated Reporting; IIRC 2013
    • Image Transition Slide
    • • Scenarios: Breakdown or Breakthrough? • Who’s driving innovation? • Barriers to progress • Hopes for Breakthrough Capitalism
    • Scenarios & Trajectories Distopia Disruption Harmony Breakthrough Capitalism Report Volans 2013
    • Who’s Driving? The Future Quotient: 50 Stars in Seriously Long-Term Innovation, Volans & JWT 2012
    • Macro Barriers
    • The Innovation Chasm “Anything non-incremental is seen as insane.” Peter Thiel The Future Quotient: 50 Stars in Seriously Long-Term Innovation, Volans & JWT 2012
    • Organizational Barriers • Short term incentives – Misaligned with long-term thinking and action • Shortage of expertise – Complex, inter-related risks call for innovative multi- stakeholder planning and engagement skills • Capital budgeting limitations – High discount rates applied to long-term investments often lack holistic costing of externalities • Investor pressure – Companies must attract investors with longer term interest
    • Breakthrough Capitalism More Important Than Ever "It's no surprise that banks and financial sectors are the institutions least trusted by U.S. society. Trust reached an all- time low of 24% in 2011, down from 69% in 2008." Jean Rogers, Executive Director, SASB • 1,000 companies account for 50% ($32 trillion) of total market cap of 60,000 publicly traded companies. • 172 companies account for 50% ($16 trillion) of top 1,000 • 83 companies account for 33% ($11 trillion) of top 1,000 Professor Robert G Eccles, HBS
    • Market Concentration, Blessing or Curse? “Market opportunity, peer pressure, investor pressure, and brand reputation are doing for these companies what otherwise might be accomplished only through regulation. " Professor Robert G Eccles, HBS Breakthrough Capitalism Report, Volans 2013 Global C-Suite Scenarios
    • Market Concentration, Blessing or Curse? Breakthrough Capitalism Report, Volans 2013 CSO Scenarios “The [CSO] role will be critical through to 2020, but I hope that the need for this role in most businesses will fade away after that as sustainability is recognized as a part of everyone’s job, especially the business leader’s.” Niall Dunne, CSO BT
    • Hopes for Breakthrough Capitalism C-Suite Leadership – Self Directed • Marks & Spencer – Estimated savings >$300 million 2007 - 2012 • Unilever “If you buy into this long- term value model, which is equitable, which is shared, which is sustainable, then come and invest with us. If you don’t buy into this, I respect you as a human being, but don’t put your money in our company.” Paul Polman, Unilever CEO
    • Hopes for Breakthrough Capitalism C-Suite Leadership – Industry Consortia Apparel industry competitors – including Nike, Adidas, Puma – collaborate to tackle discharge of hazardous chemicals in shared supply chain. Global multi-sector membership collaborating for transparent methodologies, tools, and strategies to drive a new generation of products and supply networks that address environmental, social, and economic imperatives.
    • Hopes for Breakthrough Capitalism C-Suite Leadership – Peer Mentorship “The Elders” of global capitalism The B Team launched last Thursday, with Sir Richard Branson and Jochen Zeitz being joined by a select group including Shari Arison (Arison Group), Kathy Calvin (United Nations Foundation), Arianna Huffington (The Huffington Post Media Group), Mo Ibrahim (Celtel), Guilherme Leal (Natura), Strive Masiyiwa (Econet Wireless), Dr. Ngozi Okonjo-Iweala (Government of Nigeria), François-Henri Pinault (Kering), Paul Polman (Unilever), Ratan Tata (Tata Group), Zhang Yue (Broad Group), Professor Muhammad Yunus (Yunus Centre), Dr. Gro Harlem Brundtland (The Elders), and Mary Robinson (The Elders, Mary Robinson Foundation).
    • Hopes for Breakthrough Capitalism Radical Collaborative Innovation Breakthrough Capitalism Report, Volans 2013 • Grand Challenges • X-Prize Foundation • Solve for X (Google)
    • Purpose Capital — Matter to the World 31 Sean Holt, Purpose Capital Sustainability Strategy as Critical to Performance Go…Sustainability Alpha! Thank you!