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Building a sustainable economy

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How do you know what your future market will look like? How can your business model adapt? And how can it help your business? Explore these questions using Horizons, a practical tool to help identify and think through the big environmental and social trends and issues.

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Building a sustainable economy

  1. 1. Building a Sustainable Economy
  2. 2. The Questions • • • How do you know what is sustainable and what isn’t? What does a sustainable economy look like? How do you put this into practice? We’ve been trying to figure this out and came up with something called Horizons Let’s begin…
  3. 3. What are the critical sustainability issues facing your organisation now or in the future? Some examples of the many trends shaping our society and economy
  4. 4. Urbanization By 2050 2 out of 3 people will live in cities Demographic change Ageing population Not just in the developed world: by 2050 nearly 1 in 5 people in developing countries will be over 60 Life expectancy in developing countries has risen from 46 to 64 years since the 1960s. Infant mortality rates have halved too.
  5. 5. “By 2050, humanity will demand TWICE as many resources as the planet can supply. Meeting future demand for steel, water, agricultural products and energy would require roughly $3 trillion average capital investment/year” McKinsey, Resource Revolution
  6. 6. Competition for land, water and resources is a potential risk for migration and conflict
  7. 7. Every 24 hours we lose 150-200 species forever. This is 1000 times the rate of natural extinction and could lead to economic collapse Source: UN 2010
  8. 8. These are just some of the risks that we should be paying attention to We’re used to thinking about financial risks, but to be prepared for the future we need to think about all the trends and issues affecting you
  9. 9. So what does a sustainable economy look like? One that operates within safe environmental limits and delivers social value. To break this down, we’ve done a lot of thinking and come up with something called Horizons
  10. 10. Explore and discover our videos http://horizons.innovateuk.org/
  11. 11. Source: horizons.innovateuk.org
  12. 12. How we approach a new topic • • • • • • Set a goal Define what we mean (e.g. what is ‘resilience’) Explain why is this critical Include some killer facts Develop case studies Signpost further resources
  13. 13. Many companies are generating value from responding to these drivers
  14. 14. Why is this vital to long-term success? “Investment outperformance will come from spotting sustainability winners early” - Aviva “Lasting way to deliver our mission is by aligning with a sustainable future” - Technology Strategy Board
  15. 15. Dow Jones Sustainability Index • • Companies on the DJ Sustainability Index are outperforming the DJ General Index DJSI saw a 31% increase in participation from companies in emerging markets
  16. 16. Ask yourself • • • How are these trends driving changes to the market? What is the right business model? How are we uniquely placed to contribute to these goals?
  17. 17. Test your strategy and drive new innovation
  18. 18. Questions to take away What are the critical sustainability issues facing your organisation? How can you turn potential risks into opportunities?
  19. 19. Nicky Conway Principal Advisor Email: n.conway@forumforthefuture.org Mike Pitts Lead Specialist, Sustainability Email: Michael.Pitts@tsb.gov.uk For more information and a webinar: www.forumforthefuture.org Company No. 2959712 Charity No. 1040519

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