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AChance
ChangeChange
ChanceA
#bethechance #makeitwork
forfor
The Tipping Point For
Sustainable Business
Table of Contents
1.
People
New
Generations,
New
Expectations
Sheila McLean
Corporate &
Brand Citizenship
Practice (CBC)
D...
3.
Collaborate
across
boundaries
90
4.
Change
behavior
98
1.
Maximize
resources
70
2.
Create
positive
handprints
80
106
5....
45
78
Simplify, Inspire, Engage
Inspiring campaigns selected by the
Corporate & Brand Citizenship team,
MSLGROUP
Me, My Wo...
150
45
78
3 Tips to Achieve Real Impact with your
Human Rights Initiative
Luna Atamian
Senior Account Executive, Corporate...
Foreword
There has been some progress. Early sustainability
leaders are already testing and implementing new best
practices. Some b...
Sustainability
Meeting the needs of
the present without
compromising the ability
of future generations to
meet their own n...
Sustainable Citizenship:
A corporate citizenship that is solidly
grounded in a consistent and
coherent sustainable busines...
The Road To
& Through Paris
Join an unstoppable movement: A collective
commitment to tackling climate change
The COP21 con...
Paris prepares for COP21
As part of renovations to the
Eiffel Tower, UGE was called
in to install two wind turbines
on the...
We are seeing a broad and diverse range of
stakeholders raising their voice
from leaders who are acknowledging climate cha...
Towards new business
models: A growing
intricacy between
business and climate
Beyond this, a key driver is our conscience
...
As the road to the COP21 becomes
busier, these words of Unilever chief
Paul Polman in Business, society and
the future of ...
Business sustainability: From
convenience to compliance,
now to performance
There is no doubt that sustainability is no lo...
These elements are what make up a company's
reputation in today's liquid age:
MSLGROUP's approach to the Reputation Comple...
of their business strategy: (1) a corporate purpose that is grounded in
sustainability and (2) a relevant citizenship appr...
Section I:
The Perfect
Storm: People,
Priorities,
Opportunities
Millennials are driving
the demand for change.
They are upset about
the lack of climate
action, and have big
expectations ...
New Generations,
New Expectations
The question is no longer whether a business
should behave in a sustainable manner
Sheil...
Millennials are a driving force for
business sustainability
Leading businesses know that they are a critical part of the s...
Global insights from our millennial community
Nidhi Chimnani
Director - Research & Insights,
MSLGROUP, and a Millennial
In...
Millennials want brands to partner with…
Governments
169
Better Suppliers
129
Organizations
(like the United Nations)
125
...
Millennials are AFRAID: they are
worried, nervous and uncertain
about the future.
Climate-anxiety appears to be
very real ...
Take-away for business:
Demonstrate the value that
millennials can deliver, as
customers and as employees,
as individuals ...
The Asia View:
How Millennials
feel about Climate
Change in China
and India
SECTION I : PEOPLE
In China and India, 90 young adults, aged 18-30, shared their views. Like their global peers, they are WORRIED,
ANXIOUS an...
Schubert Fernandes
Senior Vice President, India,
and, Asia Lead, Corporate &
Brand Citizenship,
MSLGROUP
Climate Change:
F...
In this context, Indian millennials are scared. They are worried and
sad by the current state of the planet. They sense th...
Engage Chinese
Millennials with
Meaningful Missions
Lusha Niu
Director,
MSLGROUP China
If there is only one thing that the...
Chinese companies and some of the very prominent Chinese
entrepreneurs also enacted varied degree of emission controls
vol...
Six Millennial
Change-Makers on
Sustainability
SECTION I : PEOPLE
“For thousands of years we have
grown our crops and have enjoyed
the abundance of resources from
our coral reefs. However,...
Whenitcomesto
environmentalissuesin
general,Ithinkacommon
responseis,wellthat'salong
wayoff,that'sforourchildren
toworryab...
I personally cannot
keep turning on my tap,
without knowing where
the water is coming from,
because one day, if that
runs ...
Anyone truly aware of what
is going on with our cotton
farmers would not continue
to ignore this crisis. If you
had a viab...
“Going Zero Waste has been the
absolute the best way to align my
values (hope for a more balanced
environment) with my day...
"We live in an era where waste is
one of the biggest human problem.
I use coffee waste - that is coffee
grinds - to make m...
The Plastic Bank incentivizes people in disadvantaged communities to
collect plastic and swap it for goods - like access t...
Luis Davila
Team Leader, Momentum for
Change Initiative, United Nations
Climate Change secretariat
@davilalu
New Developme...
The new Sustainable Development Goals (SDGs)
and the Paris Climate Conference (COP 21) in
December 2015 will drive the wor...
This year marks a defining moment in the global quest for a
sustainable future for 7 billion people, rising to over 9 bill...
The 17 new Sustainable Development Goals, also
known as The Global Goals, set the agenda for
global leaders and businesses...
The Business of
Development
Leveraging the UN Sustainable Development Goals
for Business Growth and Global Impact
Nigel Sa...
For businesses specifically, it is not only about maximizing
material contribution, but also maximizing value for all thei...
Fortune favors the brave: 5 key insights for taking action
The SDGs could prove to be a guidepost for companies that have ...
The business community faces a unique
opportunity to explore, in collaboration with
the rest of the global community, the
...
Trends that are Shaping the
Future of Business
Sustainability
We asked CSR veteran Mark Newton what the future of business...
2 Responsibility recoil.
Educated consumers that vote responsibly with their wallet are whom we strive to reach. But despi...
3
(More from Mark Newton at page 144)
Flattening Earth.
Global emerging “frontier” markets like MIST (Mexico,
Indonesia, S...
For many years, science has been lurking in the
background of the sustainability debate; biding
its time, waiting for its ...
At General Motors, our approach to
sustainability is strengthening our
company and providing customer
benefits while build...
We will continue to see
millennials looking to
companies to take a stand on
environmental issues.
It's a huge opportunity ...
People's Insights: Tell us about the mission of B Lab.
Marcello:
PI: What has drawn so many business owners to this
moveme...
PI: What is your vision for 2020?
Marcello: We are creating a whole new class of companies that embody the
“best for the w...
For example, we have partnered with the Mayor of New York and the
New York City Economic Development Corporation to host t...
We are creating a whole new class of
companies that embody the “best for
the world” spirit.
Marcello Palazzi, B Lab Europe...
Experts from MSLGROUP Andreoli in Brazil point out that
sustainability can be a competitive advantage for companies,
with ...
Braskem's sourced from sugar
cane ethanol
development of a green plastic,
instead of the traditional fossil fuel petroleum...
Brazil's largest bank is the only Latin
American bank that participates in the Dow Jones
Sustainability Index since its cr...
The power of incentives and recognition
Incentives for corporate sustainability practices also include the recognition of
...
Sustainability is no longer an option
Aware of this challenge, the business community has often scheduled the issue on the...
The focus on sustainable innovation is no longer optional
and has become a strategic priority for all the companies,
whate...
Section II:
Our Chance
for Change:
Disruptions
in Action
People swam in the
Charles River. For Fun.
Boston Globe
Fast forward to today. Local agencies have made huge progress in c...
Unlocking the forces
of business and consumer demand
An interview with Sally Uren
Sally is Chief Executive at the Forum
fo...
PI:
bringing about change?
Sally:
PI: What about millennials - what role might they play?
Sally:
What role can the end-con...
Five Disruptions
in Action
Nidhi Chimnani
Director, Research & Insights,
MSLGROUP
@nidhichimnani
Melanie Joe
Consultant, R...
The future is here, it's just not
evenly distributed.
William Gibson
Section II : Five Disruptions in Action 69
MAXIMIZE RESOURCES
Circular Economy
Sharing Culture
Upcycling
TM
Spotlight: Levi’s Water<Less
1
From startups to well-esta...
$500
MILLION
Value of the
7.5 million tons of
extractable plastic in
the oceans
The Ocean Cleanup
$750
BILLION
Cost of pro...
One of the ways we can maximize resources is by developing
circular economies, in which products and by-products are
syste...
A preview of Project Ara, a
modular smart phone by
Google, inspired by Phonebloks
Yerdle: How Many Items in the
Average Ho...
Sharing culture
Shifting from ownership
to access
People's relationship with things have changed in recent years
as a resu...
LE TOTE - Always have
something new to wear
Businesses are responding to
people’s willingness to “share” or
“access” by of...
Upcycling
Enhancing the value of
existing products
The upcycling movement acknowledges that some value is lost
during recy...
Project LUV Seat: Southwest
Airlines upcycled old leather
seats and added value to
communities in Nairobi, Kenya,
Malawi a...
Levi's Water<Less™
(More from Michael Kobori at page 96)
In conjunction with that announcement, we
launched a consumer edu...
ARE YOU READY
TO COME CLEAN?
TAKE THE QUIZ
& PLEDGE TO WASH LESS.
START
Section II : Five Disruptions in Action | Maximize...
Purpose
Create shared value
Net positive
Spotlight: Sodexo's
Better Tomorrow Plan
Traditionally, organizations have create...
83%
MILLENNIALS
from around the world
who want business to
get more involved in
solving social issues
MSLGROUP's
The Futur...
Purpose
Aligning people and business
An important first step for a business or organization is to find a
purpose - one tha...
PURPOSE, PEOPLE AND
BUSINESS
THE BUY AND GIVE MODEL
A clear purpose can provide a
strong narrative to a brand's story
and ...
The concept of Create Shared Value (CSV) was introduced in 2006 and
offers a holistic vision for the role of business in s...
SOCIAL DEVELOPMENT:
AN INVESTMENT
New technologies can help
accelerate the speed and scale of
social development.
For exam...
The Net Positive approach lies at the forefront of sustainability
and points to a future where business makes an overall
p...
Dell technology enables the
design and production of
sustainable products, like Green
Toys, which has recycled 24
million ...
Sodexo's Better
Tomorrow Plan
CREATE
POSITIVE
HANDPRINTS
2
John Friedman
Communications Director,
Sodexo, and author of
PR...
Sodexo WasteLESS Week
Reductions in waste that are
observable over a five day period
inspire continued actions and so
Wast...
As businesses and organizations dive deeper
into sustainability, it's quickly apparent that
no one entity can solve today'...
If you want to go fast, go
alone. If you want to go
far, go together.
African Proverb
100
MILLION
The number of new
vehicl...
A Chance for Change: The Tipping Point for Sustainable Business
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A Chance for Change: The Tipping Point for Sustainable Business

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In 'A Chance for Change: The Tipping Point for Sustainable Business', we feature the voices of inspiring millennials, sustainability leaders and industry experts, and highlight the diverse initiatives already in play.

We hope this report reassures you that change is coming, and inspires you to be a part of the journey. If you are looking for a partner in developing your sustainability story, start a conversation with us today.

We hope you enjoy reading this report and invite you to share your feedback and tips with us @PeoplesLab or reach out to us on Twitter @msl_group.

Published in: Business

A Chance for Change: The Tipping Point for Sustainable Business

  1. 1. AChance ChangeChange ChanceA #bethechance #makeitwork forfor The Tipping Point For Sustainable Business
  2. 2. Table of Contents 1. People New Generations, New Expectations Sheila McLean Corporate & Brand Citizenship Practice (CBC) Director, North America, MSLGROUP Global Insights from our Millennial Community Nidhi Chimnani Director, Research & Insights, MSLGROUP Kim Ali'itasi McGuire Coral Reef Advisory Group & Pacific Voyager 32 New Development Goals and Climate Agreement offer Opportunities for Business Luis Davila Team Leader, Momentum for Change Initiative, UN Climate Change secretariat 3 Trends that are Shaping the Future of Business Sustainability Mark Newton Head of Environmental & Regulatory Affairs, Samsung Electronics America 37 The Business of Development: Leveraging the UN SDGs for Business Growth & Global Impact Nigel Salter, CEO, Kristina Joss, Senior Sustainability Consultant, Salterbaxter MSLGROUP Salterbaxter MSLGROUP 20 5452 3. Opportunities Priorities Change, Values Stay the Same David Tulauskas Sustainability Director, General Motors Re-defining Success in Business Marcello Palazzi Co-founder, B Lab Europe 18 I The Perfect Storm: People, Priorities, Opportunities Fear prompts Indian Millennials to Hope, & Act Schubert Fernandes Lead, Asia, MSLGROUP SVP, India, and CBC Engage Chinese Millennials with Meaningful Missions Lusha Niu China Director, MSLGROUP 6 Millennial Change-Makers Boyan Slat The Ocean Cleanup Samantha Bode The Longest Straw Apurva Kothari No Nasties Lauren Singer Trash is for Tossers & Founder, The Simply Co. Ghidaq al-Nizar @coffeetopia 44 48 2. Priorities Special: Sustainability in Brazil - A Competitive Advantage MSLGROUP Andreoli 40 22 28 30 58
  3. 3. 3. Collaborate across boundaries 90 4. Change behavior 98 1. Maximize resources 70 2. Create positive handprints 80 106 5. Make clean energy Michael Dickstein Director, Global Sustainable Development, HEINEKEN John Friedman Corporate Responsibility Communications Director, Sodexo, & Author of PR 2.0 Michael Kobori Vice President of Sustainability, Levi Strauss & Co. Rosie Pidcock Senior Business Development Manager, UGE David Tulauskas Sustainability Director, General Motors Unlocking the Forces of Business and Consumer Demand An interview with Sally Uren, Chief Executive, Forum for the Future 66 64 Table of Contents II Our Chance for Change: Disruptions in Action Five Disruptions in Action Featuring comments and case studies from sustainability leaders Nidhi Chimnani, Director Research & Insights, MSLGROUP Melanie Joe, Consultant Research & Insights, MSLGROUP Re-negotiating the UNFCCC Framework Alice Maréchal, Karen Verlinden, Rémy Ruat, On behalf of the Sciences Po student team 116 It's Time for Transformation: Everything Needs to be Questioned Pascal Beucler, SVP & Global Chief Strategy Officer, MSLGROUP 122
  4. 4. 45 78 Simplify, Inspire, Engage Inspiring campaigns selected by the Corporate & Brand Citizenship team, MSLGROUP Me, My World, The World Luna Atamian, Senior Account Executive, Corporate & Brand Citizenship, North America, MSLGROUP Engaging Employees around CSR Kerri Warner SVP, Employee Practice, North America, MSLGROUP Humanizing Climate Change Kristina Joss, Senior Sustainability Consultant, Salterbaxter MSLGROUP Michael Dickstein Director, Global Sustainable Development, HEINEKEN Mark Newton Head of Environmental and Regulatory Affairs, Samsung Electronics America 128 136 Expert tips on engaging core audiences 126 132 146 Table of contents III Humanizing Sustainability: Making it Matter
  5. 5. 150 45 78 3 Tips to Achieve Real Impact with your Human Rights Initiative Luna Atamian Senior Account Executive, Corporate & Brand Citizenship, North America, MSLGROUP The Ever-Evolving Definition of Human Rights Melanie Joe Consultant, Research & Insights, MSLGROUP Human Rights is at the Center of Business Sustainability Jim Peacock Director, Consultancy & Communications, Salterbaxter MSLGROUP Building the Resilience of People and Communities Liping Mian Human Rights Advocate 152 154 162 158 Table of contents IV A Rising Business Priority: Human Rights Data protection, a fundamental people right in Europe Leonardo Sforza Managing Director, Brussels, MSLGROUP 168
  6. 6. Foreword
  7. 7. There has been some progress. Early sustainability leaders are already testing and implementing new best practices. Some big businesses have already pivoted to become more sustainable. T his December, the world's eyes will be on Paris as United Nations delegates, government officials, business leaders and concerned global citizens come together to tackle climate change and global warming at the UN's COP21 climate conference. The ambition to drive change is unprecedented. Hundreds of thousands of people, experts and leaders have voiced their concern and determination to find and implement meaningful solutions. Governments are beginning to come around and make significant commitments to change. We are seeing headlines about plastic roads, a solar revolution, sports shoes made of recycled ocean waste, clothes that are being 'grown' and biofuel for jets. It is increasingly clear – no matter what deal is agreed upon in Paris, the global movement for sustainable development can't be stopped. There is much to do, and many businesses and people who are committed to finding a new way of living and taking action. In A Chance for Change: The Tipping Point for Sustainable Business, we feature the voices of inspiring millennials, sustainability leaders and industry experts, and highlight the diverse initiatives already in play. As science fiction writer William Gibson wisely wrote: the future is here, it's just not evenly distributed. We hope this report reassures you that change is coming, and inspires you to be a part of the journey. If you are looking for a partner in developing your sustainability story, start a conversation with us today. We would also like to take this opportunity to thank our contributors for their valuable input to this report. Click on the Twitter icons throughout this report to tweet the quotes that are highlighted. Guillaume Herbette CEO MSLGROUP Foreword 7
  8. 8. Sustainability Meeting the needs of the present without compromising the ability of future generations to meet their own needs - United Nations People Planet Profit
  9. 9. Sustainable Citizenship: A corporate citizenship that is solidly grounded in a consistent and coherent sustainable business strategy, and backed by evidence. 9
  10. 10. The Road To & Through Paris Join an unstoppable movement: A collective commitment to tackling climate change The COP21 conference, coming up in Paris this December, will be the focal point for the world's leaders and leading companies as the United Nations’ Secretary-General Ban Ki-moon seeks a binding commitment to tackle global climate change. The conference is being billed as the most significant attempt to organize a response to the risks presented by severe climate change and its impact on the world's economy and populations. Last year's UN Climate Summit in New York generated huge interest, massive demonstrations and some striking commitments from corporations and corporate leaders. It was merely a warm-up ahead of COP20 in Peru in 2014 and the bigger focal point, COP21 in Paris in a few weeks from now. Introduction: Pascal Beucler SVP & Global Chief Strategy Officer, MSLGROUP @pbeucler
  11. 11. Paris prepares for COP21 As part of renovations to the Eiffel Tower, UGE was called in to install two wind turbines on the second floor of the iconic monument. The turbines will produce 10,000kWh of electricity a year, enough to cover the energy needs of activity on the Eiffel Tower's first floor. The issue of climate change and the conference in Paris will be extremely high profile until the end of 2015. It will be relevant to major corporations, governments, NGOs, industry groups and global bodies. Businesses, their audiences and all their stakeholders will have to respond to the debates during the event and then develop initiatives following the outcomes of COP21. As we get closer to the summit, we are already witnessing a growing interest - and concern - around the climate issue. It is more than just a technical debate between climate experts. It also goes beyond the climate change denial controversy. Image Credit: UGE Introduction : The Road To & Through Paris 11
  12. 12. We are seeing a broad and diverse range of stakeholders raising their voice from leaders who are acknowledging climate change to ordinary citizens who are concerned about their personal and collective future on this planet. They are taking action, or showing the willingness to do so. It is too early to know how successful the negotiations at COP21 will be. But what is sure is that a worldwide opinion movement is growing around the climate issue, and that nobody can stop it. MILLENNIALS Millennials are frustrated and worried, see what they are saying at our platform bethechance.com, and on page 22. GOVERNMENTS Government officials in various countries - and not just the usual suspects like Al Gore or Ministers of Ecology - are speaking out. Earlier this year, Saudi Arabia's oil minister Ali Al-Naimi spoke of his country's investment in solar energy as they prepare for a near future where fossil fuels are no longer needed. RELIGIOUS LEADERS Pope Francis expressed a very high-level moral statement on our historical responsibility - and particularly that of businesses and financial institutions in his recent encyclical on the environment and climate change. Leaders of other faiths, such as the Dalai Lama and Muslim leaders across the globe, are speaking out as well. Concerned citizens are making lifestyle changes to reduce their own impact on our global footprint (My Zero Waste). CITIZENS BUSINESSES Business leaders are passionate about driving change. Earlier this year, 43 “Climate CEOs” representing companies with operations in 150 countries wrote an open letter voicing their support to transition into a low-carbon, climate- resilient economy. This coalition was facilitated by the World Economic Forum, and includes big multinationals across FMCG, finance, insurance, construction and electronics industries. CELEBRITIES Pop cultural icons are leveraging their fame for change. From Hollywood actor Leonardo DiCaprio who was named the UN Messenger of Peace for Climate Change last year, to musician Pharrell Williams who joined Bionic Yarns - a company that transforms plastic waste into fabric. Spoken word artist Prince EA has risen to fame because of his voice on today's issues - his video “Dear Future Generations: Sorry” has amassed over one million views. Image Source: youtube.com/watch?v=eRLJscAlk1M ImageSource:giulionapolitano/Shutterstock.com ImageSource:360b/Shutterstock.com ImageSource:twitter.com/PaulPolman
  13. 13. Towards new business models: A growing intricacy between business and climate Beyond this, a key driver is our conscience - our ambition to build a better world for our children and to leave behind a strong positive legacy. What's at stake for business? Their ability to exist in the future. To safeguard communities and supply of natural resources. To protect investments. To attract and retain (and satisfy) talent. To meet the needs and expectations of customers and investors, who are looking for businesses to adapt to digital disruptions and prepare for physical disruptions. A changing climate is everyone's problem - that is one of the realities of living in such a globalized, complex world. As Barack Obama reminds us, we have but one planet - earth. Introduction : The Road To & Through Paris 13
  14. 14. As the road to the COP21 becomes busier, these words of Unilever chief Paul Polman in Business, society and the future of capitalism (McKinsey) have a particular resonance: In the coming 15 years, we need to align on the new Millennium Development Goals. We have a unique opportunity to create a world that can eradicate poverty in a more sustainable and equitable way. That is very motivational. Business needs to be part of it. Corporate social responsibility and philanthropy are very important, and I certainly don't want to belittle them. But if you want to exist as a company in the future, you have to go beyond that. You actually have to make a positive contribution. Business needs to step up to the plate. Although some people might not like business or fail to understand that it needs to make a profit, they do understand that it has to play a key role in driving solutions. In the next ten years, I think you are going to see many more initiatives undertaken by groups of businesses to protect their long-term interests and the long-term interests of society. Governments will join these initiatives if they see business committed. It is, however, becoming more difficult for governments to initiate such projects in the current political environment as long as we don't adjust our outdated governance model.
  15. 15. Business sustainability: From convenience to compliance, now to performance There is no doubt that sustainability is no longer a compliance - or “just” a corporate social responsibility - issue. It is now definitely a core business concern that is fundamental to long-term objectives, long-lasting performance and creation of beneficial shared value. Like Coca-Cola Enterprises puts it: “those that seamlessly incorporate sustainability within their overall strategy not only benefit from improved cost margins and an enhanced corporate image, but also make valuable contributions to critical global concerns such as youth unemployment and resource scarcity.” At MSLGROUP, we are deeply convinced that there's no better reputation shield than what actually insulates the organization from future risks, and fosters robust relationships with customers, employees and communities. Nothing is more important today than to collaboratively address, as the Financial Times and Coca-Cola Enterprises highlighted it, the sustainability challenges, strategies, trends and perspectives that are shaping all business models: “ensuring that the next-generation is workplace-ready, tackling resource wastage and climate change, and enabling leaders to engage with society and prepare their organizations for future threats and opportunities.” This calls for new and innovative ways to combine profit and purpose; to redefine the role of business in society; and to better identify and analyze what younger generations believe, value and bring to the table. Connecting purpose, participation and profit is what creates the conditions for what we tend to call Sustainable Citizenship: a corporate citizenship that is solidly grounded in a consistent and coherent sustainable business strategy, and backed by evidence. Introduction : The Road To & Through Paris 15
  16. 16. These elements are what make up a company's reputation in today's liquid age: MSLGROUP's approach to the Reputation Complex Purpose what you stand for as a company Citizenship the way you help solve pressing social issues Employer Value Proposition what makes you an employer of choice Social Openness your ability to listen and share
  17. 17. of their business strategy: (1) a corporate purpose that is grounded in sustainability and (2) a relevant citizenship approach. Businesses that are able to really understand millennials' mindsets and their views, concerns and priorities especially around sustainability and the climate, will be better able to engage millennials and make them part of their sustainability story. Read early insights from our online millennial community, bethechance.com, at Page 22. Follow @BetheChance on Twitter for fresh insights Join us at A Chance for Change, our event in Paris this December to understand where millennials and business overlap on the topic of climate change. U.S. millennials alone are projected to spend $1.4 trillion annually by 2020 (Accenture) If you're not where Millennials are, you're nowhere In many ways, the future of Sustainable Citizenship is now in the hands of two unexpected partners: businesses and millennials, the most influential generation the world has ever seen. Why millennials? There are nearly 2 billion millennials globally. They will make up the majority of the global workforce in a few years. Their cumulative spending power is large and they believe business should be measured by more than just profit (Deloitte). This surprising couple of business and millennials could very well change the game as long as major companies put two things at the heart Introduction : The Road To & Through Paris 17
  18. 18. Section I: The Perfect Storm: People, Priorities, Opportunities
  19. 19. Millennials are driving the demand for change. They are upset about the lack of climate action, and have big expectations of business, and of themselves. Section I : The Perfect Storm: People, Priorities, Opportunities 19
  20. 20. New Generations, New Expectations The question is no longer whether a business should behave in a sustainable manner Sheila McLean Corporate & Brand Citizenship Practice (CBC) Director, North America, MSLGROUP Of course, few businesses have ever claimed to act against the interests of society. But for too long, Corporate Social Responsibility (CSR) has been based largely on the assumption that the business case always aligns with the societal case as long as enough philanthropy is dispensed. New generations and new expectations have moved us significantly beyond this idea. Stakeholders now expect all businesses to take responsibility for all their impacts and to prevent human rights harms. In 2014, MSLGROUP surveyed 8,000 millennials in 17 countries on the topic of sustainability and citizenship. Millennials' views differ starkly from those of preceding generations. Millennials feel that government can't solve societal issues by themselves, and are counting on business to be the solution and to be actively involved. So the question is no longer whether a business should behave in a socially responsible and sustainable manner, but rather: How? SECTION I : PEOPLE
  21. 21. Millennials are a driving force for business sustainability Leading businesses know that they are a critical part of the solution. These leaders go well beyond philanthropy and drive their organizations to make money in more sustainable and socially responsible ways. Business have to move away from the short-term focus on shareholders alone to a model of sustainable citizenship that focuses on all stakeholders. Governments also must act, providing sticks and carrots to business. Sustainable business practices must be enterprise-wide endeavors, steeped in purpose. No matter what words are used, concerns about climate change are real and here to stay. Just ask the millennials whose buying and voting power will only grow. Business and government leaders who ignore sustainability do so at their own risk. There is an urgent need to move from talk to action. Millennials - the largest, most diverse and influential generation to date - are game changers in their expectations of business, with distinct ideas on how companies should behave. The overwhelming majority believe that corporations should tackle issues such as the economy, health and environment. Millennials look to businesses not only to lead, but also to actively engage them in the process. This opens ups huge opportunities for businesses worldwide to re-set in the face of declining stakeholder trust. However, a key point in the study is the degree to which millennials expect business to be active in addressing sustainability issues. Just complying with the law and PR will simply not wash. Millennials expect serious and effective performance in these areas. This can in part be explained by the recent economic crisis across the globe, which has led to a serious lack of faith in business and an increased expectation that business needs to work differently and deliver different outcomes. Link this to the transparency being driven by social media, and businesses that don’t act will not succeed. Section I : People | New Generations, New Expectations 21
  22. 22. Global insights from our millennial community Nidhi Chimnani Director - Research & Insights, MSLGROUP, and a Millennial In the lead up to COP21, we asked our global community of millennials at BetheChance.com how they feel about climate change. Over 250 millennials (18-30 year olds) from Canada, China, Denmark, India, Poland, United States, United Kingdom and beyond shared a remarkably similar voice: they are deeply concerned about the climate, disappointed in our collective past behavior and desperate for change. Their responses echoed the findings from MSLGROUP's 2014 survey of 8,000 millennials across 17 countries: Millennials hold businesses responsible for implementing solutions. @nidhichimnani Millennials are worried, frustrated, and want climate action, now! SECTION I : PEOPLE
  23. 23. Millennials want brands to partner with… Governments 169 Better Suppliers 129 Organizations (like the United Nations) 125 People like Me Charities Religious Organizations 86 22 73 Over the last few weeks, millennials shared that they demand BIG actions from business – they want to hear more about greener and cleaner products and want businesses to take a greener approach in their operations, innovations, packaging and investments. Most of all, millennials want businesses to partner with governments to address climate change. With regional and global media shining the spotlight on individual countries’ climate change commitments and world leaders’ stance on this issue, it shouldn’t come as a surprise that millennials want to see collaboration amongst these two important stakeholders of business and government. Globally, governments emerged as the “most responsible” for implementing solutions to climate change. This sentiment was especially true amongst millennials in the west - Canada, United States, Denmark and United Kingdom, and in China, indicating a possible fatigue at all the hype and lack of action. Millennials from India and Poland said that the change starts with them, followed by governments, people in general, businesses and non-profits. As one young Polish millennial put it - it's not just big businesses that have an impact, every single person does. (Data based on 239 responses) Survey Question: How do you want your favorite brands to address climate change? Section I : People | Millennials are worried, frustrated, and want climate action, now! 23
  24. 24. Millennials are AFRAID: they are worried, nervous and uncertain about the future. Climate-anxiety appears to be very real among this group, with several millennials sharing that they feel panic, nervousness and angst when they think about the climate. On the other end of the spectrum, several millennials expressed confusion and uncertainty. When it comes to climate change, there are broadly 5 types of millennials. Here’s how businesses can engage with them. When we asked our community of millennials what emotion they feel when thinking of climate change, they shared a diverse range of answers. Across the seventy-five shades of emotion they shared, five clear themes (and takeaways) emerged. Millennials feel FRUSTRATED: they are angry and annoyed at perceived inaction. Their frustration stems from a perceived lack of action – especially in countries where solutions are within reach. As Sara, 24, from Denmark remarks: “It's so easy to do something - so why on earth do politicians and companies have to make it so hard?” Millennials feel RESPONSIBLE: they are sad and disappointed, but also ashamed and guilty. They feel responsible for the current state of our planet. In fact, half of the millennials we heard from believe that change starts with them personally and they seem ready to act with their wallets. 1 2 3 Take-away for businesses: Simplify communications around this complex issue, and engage millennials around the potential to make a positive change, together. Take-away for businesses: There’s an appetite for more information on climate action. Now is clearly a good time to start talking about your initiatives and contributions to solutions. Take-away for businesses: Millennials are thinking more and more about the implications of their everyday habits. They want to hear about businesses’ greener and cleaner products and they want business to innovate and change the way they operate to deliver on this.
  25. 25. Take-away for business: Demonstrate the value that millennials can deliver, as customers and as employees, as individuals and as a whole. Millennials feel POWERLESS: in the larger scheme of things. While they are ready to be the chance for change, several millennials have admitted that they feel helpless, defeated, resigned and paralyzed - the impacts of climate change seem “unstoppable.” It’s no wonder they have high expectations of businesses and governments. Millennials also feel HOPEFUL. They believe this is our greatest opportunity for “innovation, collaboration and the establishment of a real global community,” in the words of one millennial from Denmark. Others view it as a last resort. As a millennial from Malaysia said, “We cannot live happily when seeing our own house are being burnt (sic)… I do not want to feel sick anymore.” 4 5 Take-away for business: Involve young adults as your citizen partners, make them a part of your journey, and provide ways for them to make a meaningful difference. For more insights from MSLGROUP's #BetheChance community, follow @BetheChance on Twitter, where we will be sharing the voice of millennials in the run up to and during COP21. [I’m] shocked that the things most of us don't even think about can have such a huge impact half way round the world! - Elena, 19, UK Section I : People | Millennials are worried, frustrated, and want climate action, now! 25
  26. 26. The Asia View: How Millennials feel about Climate Change in China and India SECTION I : PEOPLE
  27. 27. In China and India, 90 young adults, aged 18-30, shared their views. Like their global peers, they are WORRIED, ANXIOUS and SAD about climate change. This is not surprising, considering that millennials in both these countries have recently witnessed economic growth driven by aggressive industrial activity. Millennials in both China and India have seen first hand the impact of human activity on their local environments - both countries are home to some of the most polluted cities in the world. Chinese and Indian millennials say they want businesses to deliver cleaner and greener products, and to partner with governments to drive real change. Both believe that government and business play a key role in addressing climate change. But they are different in one key way: far more Indian millennials believe that the change starts with them personally. We asked Schubert Fernandes, our Asia lead for the Corporate and Brand Citizenship (CBC), and Lusha Niu our China lead for CBC, to shed more light on these insights. In October 2015, MSLGROUP asked millennials three questions around climate change: How does climate change make you feel? Who is responsible for implementing solutions? How do you want your favorite brands to address climate change? Section I : People | Millennials are worried, frustrated, and want climate action, now! 27
  28. 28. Schubert Fernandes Senior Vice President, India, and, Asia Lead, Corporate & Brand Citizenship, MSLGROUP Climate Change: Fear prompts Indian Millennials to Hope, and Act A couple of years ago a discussion about climate change in India would give you a generic approval endorsing the need for environmental conservation and protection. But today, the same conversation ignites fear and anxiety in the minds of young India. This sentiment in many ways assumes the same amount of seriousness as other matters that keep millennials busy like education, career, lifestyle or love. India is currently grappling with yet another drought situation, its worst since 2009. Erratic monsoons certainly top the list of related worries, given its effect on the $370 billion agriculture sector, 60% of which is dependent on rainfall. Global warming is taking its toll right across and however much is being done in carbon control or clean energy, it doesn't seem to be enough given the aggressive pace of growth that all economies are driving. SECTION I : PEOPLE
  29. 29. In this context, Indian millennials are scared. They are worried and sad by the current state of the planet. They sense there is an urgent need to act and they have started to act. With the help of social media, campaigns to drive change or oppose environmental degradation have seen success. Pivotal bodies like the government and corporates are also keeping pace. It’s difficult to ignore the surging urge of the country’s young, now a little over 30%, to effect change. The Government of India recently submitted to the UN a detailed climate change plan known as the Intended Nationally Determined Contribution (INDC). Four Indian corporates, ITC Ltd., Tata Steel, Tech Mahindra and Wipro Ltd., scored a maximum 100 Carbon Disclosure Project score to top the Climate Disclosure Leadership Index (CLDI) for the quality of climate change related information they have disclosed to investors. With the cry for support unanimous and emotions ranging from anger to frustration to guilt and responsibility, millennials in India have shown interest in getting involved in business and sustainability initiatives. Businesses are responding by involving young minds in planning and programs, and by funding innovative projects or just simply encouraging ideas and actions through high profile engagement initiatives and contests. We are hoping that the UN will make a powerful point in this direction at the COP21 summit. In the coming months and years, Indian businesses will have a huge opportunity to engage with concerned millennials and involved them as active agents of change, to make the difference that is so desperately needed. In the coming months and years, Indian businesses will have a huge opportunity to engage with concerned millennials and involved them as active agents of change, to make the difference that is so desperately needed. Section I : People | Millennials are worried, frustrated, and want climate action, now! 29
  30. 30. Engage Chinese Millennials with Meaningful Missions Lusha Niu Director, MSLGROUP China If there is only one thing that the rest of the world needs to know about Chinese millennials on climate change is that they are living through it every day for the first time. None of the parents or the great parents of this generation of Chinese millennials had breathed the air and walked through the smog with a clear conscious of it being the pollution up till now. Let's not forget it was only a few years ago that the government was in denial of the pollution index published by others. a What's so great about Chinese millennials is the fact that they are holding themselves responsible to make the change happen. They largely consider businesses and the government as the key drivers to take them down a greener path. A key behavior change we have observed among Chinese millennials is they no longer taking consumption of eco-friendly products as a cool and trendy act to follow but they are doing it with a clear conscious of contributing, little by little, to bring back that blue sky we once lived under. SECTION I : PEOPLE
  31. 31. Chinese companies and some of the very prominent Chinese entrepreneurs also enacted varied degree of emission controls voluntarily on their own operations, an act viewed highly by Chinese youth when they think of a potential employer or a maker of products destined for them. 1 After all, Chinese millennials equals 415 million customers today and 35% 2 of country's total consumption by year 2020 . It also translates into USD 3 trillion aggregate income growth over the next 10 years. For marketers, 95% of female Chinese millennials owns smartphone devices and 49% of 3 them consume advertisement on their phones . The secret to success in today's China is for businesses to actively engage with Chinese millennials on meaningful missions - climate change being one of the obvious choices. The engagement also needs to be creative and attractive at the same time in order for it to work well and mark substantial impact. Urban Chinese millennials are also the generation of one child policy so they have disposable income of between USD 1,500 to 3,800 per 4 day on a single vacation trip overseas . So a meaningful and tasteful engagement would go a long way for the initiators in terms of both impact and influence. Source: 1 Goldman Sachs research and MSL analysis. | 2 AC Nielson market research and MSL analysis. | 3 emarketer statistics and MSL analysis. | 4 Forbes travel research and MSL analysis. Section I : People | Millennials are worried, frustrated, and want climate action, now! 31
  32. 32. Six Millennial Change-Makers on Sustainability SECTION I : PEOPLE
  33. 33. “For thousands of years we have grown our crops and have enjoyed the abundance of resources from our coral reefs. However, in the past decade we have seen the rapid decline of our reefs and crops due to high temperatures and rising sea levels. We need the rest of the world to see what we see, to understand the impacts that we feel. My love for my Samoan ancestry and my Pacific island community was my motivation to become a There is no more time for denial. We need this time to come up with solutions. We need to find ways to become resilient. The consequences of climate change are evident when you live on an island in the South Pacific. Rising sea levels are taking our land and threatening our way of life. Kim protects coral reefs in her native American Samoa, and has sailed across the Pacific Ocean twice on a traditional Polynesian va'a (boat) to raise awareness around climate change. A first hand witness of the dangers of climate change, Kim believes the time to act is now. Image Credit: Natalia Tsoukala Pacific Voyager. My most recent voyage was to the 2014 IUCN World Parks Congress in Sydney. The leaders of Kiribati, Palau, and Cook Islands were on board with us. Now we need the rest of the world's leaders on board with us. I voyage and speak out because I care about what we are leaving for our future generations. I want them to know that I tried my best to preserve our paradise for them.” The Pacific Voyagers journey to Sydney in 2014 Kim Ali'itasi Mcguire Coral Reef Advisory Group & Pacific Voyager, American Samoa Coral Reef Technician, Section I : People | Six Millennial Change-Makers on Sustainability 33
  34. 34. Whenitcomesto environmentalissuesin general,Ithinkacommon responseis,wellthat'salong wayoff,that'sforourchildren toworryabout.Sohello,here Iam.Whydon'twejustclean itup? Boyan Slat Netherlands Founder of The Ocean Cleanup, @BoyanSlat At a TEDx talk in 2012, Boyan introduced a method to collect all the plastic in the top layers of world's oceans. To date, the 20-year old has built a team of 100 members, completed a feasibility study and raised $2 million to fund the next phase of testing. Watch the sequel to Boyan's 2012 TEDx Talk Crew inspects a 40m long proof-of-concept barrier in Portugal, March 2014. How the oceans can clean themselves: Boyan Slat at TEDxDelft Image Credit: The Ocean Cleanup
  35. 35. I personally cannot keep turning on my tap, without knowing where the water is coming from, because one day, if that runs dry, then I'm… I'm dead. Samantha Bode The Longest Straw, Los Angeles, United States Director of feature film In 2014, Samantha successfully completed the 64 Day, 400 Mile backpacking journey. By depicting the epic journey that the city's water must travel, she and her crew hope to bring home the importance of water conservation, appreciation, and development of local water sources for the city of Los Angeles. The Los Angeles Aqueduct, one of three major water sources in LA, began operation in November of 1913. Originally, it stretched from Owens Lake to LA, but as the City of Angels has grown, greatly expanding local water needs, the aqueduct has been twice extended, now stretching 338 miles and ending north of San Francisco and east of Yosemite National Park. @TheLongestStraw Nearly two years ago, Samantha and her producer Angela Jorgensen developed a deceptively simple concept: Bode would backpack the full length of the LA Aqueduct to help the people of Southern California draw a connection between the water that comes out of their taps and the source of that water, hundreds of miles away. Trailer: The Longest Straw Section I : People | Six Millennial Change-Makers on Sustainability 35
  36. 36. Anyone truly aware of what is going on with our cotton farmers would not continue to ignore this crisis. If you had a viable alternative, you would choose it. No Nasties hopes to be that alternative with our 100% organic & 100% fair-trade clothing." Image Credit: No Nasties While in the U.S., he had read a lot about the agrarian crisis faced by Indian cotton farmers and the high number of farmer suicides in India. When Apurva returned to India, he decided it was time to change career paths and started No Nasties. Apurva structured No Nasties around a mission to help the cotton farming community. Every product from No Nasties is 100% organic In his research, he found there had been over 300,000 farmer suicides in the last 15 years - that's more than one every 30 minutes! Apurva was in the United States for over 10 years working in Technology in New York. In 2011, he decided to move back to India and wanted to get involved with organic clothing. @nonasties Apurva Kothari Mumbai, India Founder, No Nasties, and 100% fair-trade. Organic reduces the input costs for farmers, while fair trade increases revenue. No Nasties pays a fair-trade premium that is used by the farmers for community development projects. This approach helps not just the individual farmer, but the entire village. See the No Nasties clothing range
  37. 37. “Going Zero Waste has been the absolute the best way to align my values (hope for a more balanced environment) with my day to day lifestyle (not producing any trash and living sustainably). I was getting a lot of emails from my blog readers asking for places that they could buy products that were like the ones I was making since they didn't have time to make them. I started looking in stores and realized that while there were beauty A big part of living a Zero Waste lifestyle for me has been making all of my own products from scratch, everything from toothpaste to cleaning products. I have always cared deeply for the environment. I studied environmental science and was always talking about how we should do this and that. But I wasn't actually doing anything to live that way. So I decided to make a change and go Zero Waste. Lauren Singer Blogger, Trash is for Tossers and Founder, The Simply Co., New York City, United States Image Credit: The Simply Co. product options out there, the same did not go for cleaning products. In fact, there is very little regulation in the cleaning product industry and what you think you are buying might not always be what you get. This upset me. We, as consumers, have a right to safe, transparent, and effective cleaning products and it got me thinking - I had an opportunity to make these products for others. So I quit my government job as a sustainability manager and my company, The Simply Co., was born. ” Since launching my company, I have gained a platform and ability to share how I live with a larger audience than I ever thought possible. Lauren's Tedx Talk: How I live a zero waste life Lauren shares her experience going Zero Waste on her blog and through speaking engagements. Inspired by the positive support she has received from her readers and viewers, she quit her job and started her own company, The Simply Co. @Trashis4Tossers Section I : People | Six Millennial Change-Makers on Sustainability 37
  38. 38. "We live in an era where waste is one of the biggest human problem. I use coffee waste - that is coffee grinds - to make my paintings, it’s all created from remnant coffee. The second big issue that we face is deforestation so I do not use paper but plates as canvas because I am aware of how paper contributes to deforestation. Zero waste coffee is a way to express my concern for environmental sustainability. For two years, I have been running my own little green campaign. I create drawings and photography using coffee grinds! I chose #zerowaste coffee because it's all about using and re-using the coffee waste, to make it more valuable.” Image Credit: @coffeetopia Ghidaq al-Nizar of #zerowastecoffee, Indonesia Artist @coffeetopia and founder I am very grateful because thanks to my work, I was chosen as one of the ambassadors of my country's national organization to campaign for the conservation of the Sumatran tiger. My art is an example that anyone can show kindness to nature, for anything. I believe that art should be used not to escape from reality but to recreate the reality itself, a better reality!" View Ghidaq's #zerowastecoffee collection on Instagram and Facebook Ghidaq's love for coffee and the planet inspired his #zerowastecoffee collection of art.
  39. 39. The Plastic Bank incentivizes people in disadvantaged communities to collect plastic and swap it for goods - like access to solar-powered mobile phone charging stations, and soon, access to 3D printers. The Plastic Bank then recycles the collected plastic and sells it to brands as “Social Plastic.” The real opportunity is the continued demand from consumer. It's the millennials that are showing there is a market. The more they demand, the more the business changes. Right now, the market is demanding sustainability. We make it easy. David Katz Founder and CEO at The Plastic Bank Watch the story of Social Plastic by The Plastic Bank @DavidKatzEO Section I : People | Expert Tip 39
  40. 40. Luis Davila Team Leader, Momentum for Change Initiative, United Nations Climate Change secretariat @davilalu New Development Goals and Climate Agreement offer Opportunity for Business The new Sustainable Development Goals (SDGs) and the Paris Climate Conference (COP 21) in December 2015 will drive the world's development agenda for decades to come. Businesses will undoubtedly play an essential role in implementing these goals and agreements, especially as it relates to partnerships, innovation and investment. SECTION I : PRIORITIES
  41. 41. The new Sustainable Development Goals (SDGs) and the Paris Climate Conference (COP 21) in December 2015 will drive the world's development agenda for decades to come. Luis Davila, UNFCCC Image credit: Delpixel / Shutterstock.com Section I : Priorities | Opportunity for Business 41
  42. 42. This year marks a defining moment in the global quest for a sustainable future for 7 billion people, rising to over 9 billion by 2050. The SDGs and the Paris climate change agreement offer no quick fixes, but businesses can and must play an important role in helping them succeed. The Lima-Paris Action Agenda aims to accelerate climate actions - both pre 2020 and afterwards - among governments, organizations, concerned citizens and businesses.Investors are becoming increasingly aware that climate change will affect returns on investment by potentially stranding assets or affecting companies that have not made their supply chains resilient to climate impacts. This means that businesses are facing tremendous challenges, but at the same time have a unique opportunity for internal transformation. Not just of operational issues, but of their long-term corporate strategy to match the challenge of implementing the SDGs and addressing the effects of climate change. Investment If the international community is going to have any chance at meeting the SDGs or implementing a new universal climate agreement, it will need tap into the ability of entrepreneurs - and the business community at large - to be creative, disruptive and innovative. Large-scale transformation will be necessary to get closer to a highly resilient, low-carbon economy that promotes growth and prosperity for all. Luckily, the world has never had better know-how and solutions to avert crisis and create opportunities for a better life for people all over the world. From renewables to organic agriculture, solutions span every sector of the global economy. Innovation Public-private sector alliances will be key to achieve the new SDGs and to dramatically scale up climate solutions. Whether it is constructing resilient infrastructure for the 21st century that can withstand the effects of climate change, or expanding health services to millions of underserved communities globally, businesses will be called upon to help accelerate poverty reduction and build a more sustainable world. This provides a unique opportunity for businesses to expand services and tap into new markets, but perhaps more importantly it provides a roadmap for achieving shared value for businesses and served communities. Partnerships
  43. 43. The 17 new Sustainable Development Goals, also known as The Global Goals, set the agenda for global leaders and businesses through 2030. 2 ZERO HUNGER1 NO POVERTY 3 GOODHEALTH ANDWELL-BEING 4 QUALITY EDUCATION 5 GENDER EQUALITY 6 CLEANWATER ANDSANITATION 7 AFFORDABLEAND CLEANENERGY 8 DECENTWORKAND ECONOMICGROWTH 9 INDUSTRY,INNOVATION ANDINFRASTRUCTURE 10 REDUCED INEQUALITIES 11 SUSTAINABLECITIES ANDCOMMUNITIES 12 RESPONSIBLE CONSUMPTION ANDPRODUCTION 13 14 15 16 PEACEANDJUSTICE STRONG INSTITUTIONS 17 PARTNERSHIPS FORTHEGOALS CLIMATEACTION LIFEBELOW WATER LIFE ON LAND Image Credit: globalgoals.org Section I : Priorities | Opportunity for Business 43
  44. 44. The Business of Development Leveraging the UN Sustainable Development Goals for Business Growth and Global Impact Nigel Salter CEO, Salterbaxter MSLGROUP @nigelsalter2 @kjoss_ Kristina Joss ‎Senior Sustainability Consultant Salterbaxter MSLGROUP A more diverse set of goals: A larger role for business Starting January 2016, the UN Sustainable Development Goals (SDGs) will replace the Millennium Development Goals (MDGs) in dictating the global development agenda through 2030. The 17 SDGs reach across six broad categories of cooperation, dignity, justice, people, planet and prosperity, and include targets and indicators that are global, inclusive and scientifically grounded. While not legally binding or mandatory, the SDGs will undoubtedly inform investment plans and international jurisdictions, set national development budgets and drive sustainability activity. Perhaps the biggest difference between the two is the role of the private sector. SECTION I : PRIORITIES
  45. 45. For businesses specifically, it is not only about maximizing material contribution, but also maximizing value for all their stakeholders. The UN has been clear that unlike the MDGs, the SDGs will require the full engagement and participation of businesses to make achieving these goals possible. For the last 15 years, businesses have shown their value in tackling global challenges through robust sustainability strategies and community investment programs. From investment in major infrastructure; protection of human rights and the planet's ecosystem; improving opportunity, justice and prosperity; and engaging and educating consumers - business is being seen as a collaborative partner in building a better world. This creates an enormous opportunity for businesses to engage as a strong and positive influence on society and champion of our planet's stability. While the MDGs were largely directed at governments, and thus often brushed off by the business community, the SDGs are deliberately designed for business and civil society to bear responsibility for together. It's important to acknowledge that not everyone thinks the SDGs are a great new step forward. There remains a substantial body of opinion suggesting the goals are unlikely to deliver. Politicians and CEOs alike have criticized the SDGs for being too lengthy, too complex and downright unrealistic. With 17 goals, 169 targets and more than 300 provisional indicators it's an understandable criticism to make. Yet despite the opposition, the SDGs are intended to provide the widest range of opportunities for governments, businesses, NGOs and institutions to focus on areas where they can collaboratively make a positive difference. From investment in major infrastructure; protection of human rights and the planet's ecosystem; improving opportunity, justice and prosperity; and engaging and educating consumers - business is being seen as a collaborative partner in building a better world. Section I : Priorities | The Business of Development: Leveraging the UN SDGs for Business Growth and Global Impact 45
  46. 46. Fortune favors the brave: 5 key insights for taking action The SDGs could prove to be a guidepost for companies that have strong ambitions and visions for their business and the value it creates for society. When ascertaining the SDG opportunity, businesses can focus on five key insights for taking action: 1 2 Sync the strategy The SDGs arrive at a crucial point in the sustainability agenda, with many businesses looking to review their strategies and 2020 goals. Identifying opportunities to link existing and new sustainability strategies to the global challenges outlined in the SDGs will enhance a business' ability to reach sustainable growth. 3 Look across the value chain Multinational companies will want to understand whether their company operations across different geographies impede or align to each country's strategic initiatives for the SDGs. 4 5 The SDGs arrive at a pinnacle moment for the sustainability agenda, with the mobilization of citizens at the 2014 Climate Week rally in New York City, a landmark case on climate change in the Dutch courts, and the cooperation of international governments leading up to COP21. As a result, the business community faces a unique opportunity to explore - in collaboration with the rest of the global community - the potential for a problem solving agenda to the world's biggest challenges. To learn more about the business opportunity and to get in touch with Salterbaxter MSLGROUP, visit http://sdg.salterbaxter.com/ Collaborate to innovate Big impacts will require multiple layers to deliver. The SDGs will be a catalyst for innovative cross-sector, cross-issue and cross-geography collaborations that leverage respective strengths, assets and expertise all aimed to scale. Businesses should seek partnerships that are built on need and focus on innovative approaches to the indicators, as they will be the most impactful. Communicate more meaningfully Communicating sustainability remains a tremendous challenge for even the most advanced companies and today’s consumers are demanding business play an active role in addressing social and environmental challenges. The arrival of the SDGs will only intensify the need to communicate better to an increasingly educated consumer base and will provide the language to do so. Report with purpose With GRI and the UN Global Compact & WBCSD's implementation guide Compass, businesses should consider how to incorporate the SDGs into their reporting activity. This means a more proactive approach to demonstrating where and how the business is delivering material impacts against the global challenges outlined by the SDGs. In fact, the SDGs should provide the context, relevancy and value that are often lacking in sustainability reports.
  47. 47. The business community faces a unique opportunity to explore, in collaboration with the rest of the global community, the potential for a problem solving agenda to the world's biggest challenges. Nigel Salter, Salterbaxter MSLGROUP Section I : Priorities | The Business of Development: Leveraging the UN SDGs for Business Growth and Global Impact 47
  48. 48. Trends that are Shaping the Future of Business Sustainability We asked CSR veteran Mark Newton what the future of business sustainability will hold for sustainability leaders. He shared three trends to watch out for. 1 All things digital. Massive amounts of disaggregated data coupled with the rapid expansion of global digital connectivity presents an almost irresistible opportunity for tailoring messaging to individuals, micro-segments and interest groups. The challenge here is to move away from the “yuck factor” (i.e. - yuck! How did you know that about me??) On the flipside, the advent of social media and broadband enables widely dispersed and seemingly disparate groups of individuals to rally, breaking down physical barriers plaguing conventional grassroots efforts. Campaigns are moving from expensive and physical to inexpensive and virtual. Despite fatigue from relatively clumsy early efforts to punish bad behavior, the potential to significantly reward brands by using social media as an organizing and collaboration tool is still relatively unexplored. NGOs, consumers and special interest groups can now mobilize quickly, in greater numbers and without geographic or socioeconomic constraint. @newton_csr Mark Newton Head of Environmental and Regulatory Affairs, Samsung Electronics America 3 SECTION I : PRIORITIES
  49. 49. 2 Responsibility recoil. Educated consumers that vote responsibly with their wallet are whom we strive to reach. But despite best efforts apathy still reigns. Corporate green washing, messaging overload and confusion about what matters has heads spinning. Data over the last 40 years shows that CSR sensibility resonates cyclically - it peaked in the early seventies, again around mid-2000 but has since trended downward with respect to other issues more front of mind among the public. This trend is likely to continue for the next several years as geopolitical and socioeconomic factors remain volatile making CSR communications all the more challenging. We must acknowledge the public distrust and cynicism that occurs in destabilized times. Despite all the good work by the socially responsibility investment (SRI) community to focus on building the business case, there is still little evidence that mainstream investors are tuned in. This work is still in its infancy and there is huge opportunity here. Successful efforts will position CSR as a contributing factor toward alleviating socioeconomic and geopolitical instability rather than as a competing priority. Section I : Priorities | 3 Trends that are Shaping the Future of Business Sustainability 49
  50. 50. 3 (More from Mark Newton at page 144) Flattening Earth. Global emerging “frontier” markets like MIST (Mexico, Indonesia, South Korea and Turkey), MINT (Mexico, Indonesia, Nigeria and Turkey) and CIVETS (Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa) are forecast by some to surpass BRIC (Brazil, Russia, India and China) and even approach western economic output by mid-century. A huge emerging global middle class comes along with that and with it the prospect of unbridled consumerism. What these countries have also in common are emerging and stressed social and environmental infrastructures that provide both CSR opportunity and risk. As the global economy taps into markets and production capabilities here, we will see an increasingly global and interconnected supply chain racing to lowest cost providers and an influx of new product categories. In the current paradigm, lowest cost is synonymous with insufficient lifecycle considerations, an inadequate safety net for workers and lax protections for natural resources and the environment. The market potential here is tremendous - as is the opportunity to educate consumers and to produce responsibly.
  51. 51. For many years, science has been lurking in the background of the sustainability debate; biding its time, waiting for its moment to shine. It seems as if this time is now coming. The latest issue of Directions, Salterbaxter MSLGROUP's guide to trends and issues in sustainability communications, explores the exciting interplay between science, sustainability and strategy. Download the report at http://www.salterbaxter.com/directions-report-2015/ Previous issues of Directions Section I : Priorities | 3 Trends that are Shaping the Future of Business Sustainability 51
  52. 52. At General Motors, our approach to sustainability is strengthening our company and providing customer benefits while building stronger communities and a better world through improved mobility. We will increase the fuel efficiency and reduce our vehicles' environmental impact beyond anything anyone imagined even a few years ago. But we know our customers care about more than the cars. They care about how we build them, and how we engage with the world around us. David Tulauskas Sustainability Director, General Motors @davidtulauskas Priorities Change, Values Stay the Same SECTION I : OPPORTUNITIES
  53. 53. We will continue to see millennials looking to companies to take a stand on environmental issues. It's a huge opportunity to create lifelong loyalty if you have products that millennials want with a company purpose and brand promise that resonates with their values. If you get that mix right, you'll have them for life. Priorities change, but values stay the same. Conscious consumers will want sustainable and environmentally responsible products at every stage of their life, whether they are single or married or if they become parents. Authentically communicating a company's purpose and sustainability commitment can pay dividends and increase customer loyalty for the long term. For example, we operate 122 landfill-free facilities and aspire to be a completely zero-waste manufacturer. Last year, we ended use of coal as an energy source in our North America plants and continue to invest in renewable energy around the world. We believe we're part of the solution to climate change, and we're the only automaker to sign the Ceres BICEP Climate Declaration stating that addressing climate change creates economic opportunity. (More from David Tulauskas at page 114) Section I : Opportunities | Priorities Change, Values Stay the Same 53
  54. 54. People's Insights: Tell us about the mission of B Lab. Marcello: PI: What has drawn so many business owners to this movement? Marcello: B Lab is a global organization dedicated to raising the standards of business and encouraging a new generation of “best for the world” companies across industries, at a time when entrepreneurship has become the de facto engine for well-being. There are huge opportunities - and some societal and planetary pressures - to turn enterprise into a greater force for good. Given the intense economic activity of our global world of 7.3 billion people, there is also huge opportunity to further tweak the balance of negative and positive externalities and impacts of business. (which measures and compares performance), Our B Impact Assessment tool is the first step in the certification process. The tool analyzes business models, governance, social and environmental performance and looks at 200 separate issues. In addition, 3,000 businesses have registered as Benefit Corporations (legal entities) in the United States and Canada. It starts with leaders who are defining who they are and who they want to be. The world is led by many entrepreneurs who want to help shape a good life for many others and to create a legacy for themselves, beyond just making money. They try to do the best for themselves and for the world, and they introduce this culture within their businesses. For these leaders, B Corp certification is a natural next step. We do this by offering businesses B Corp certification as well as advocacy, learning and education initiatives. B Lab has certified over 1,500 B Corporations in 43 countries. An interview with Marcello Palazzi Re-defining Success in Business Marcello is Co-Founder of B Lab Europe (B for Benefit) and is on a mission to turn B Corp into a global movement of “best for the world” corporations. A philanthropreneur and Co-Founder and President of Progressio Foundation, Marcello has led over 300 innovative ventures, projects and events in 30 countries, across the 4 P's: public, private, philanthropy, and people. @mpalazzi SECTION I : OPPORTUNITIES
  55. 55. PI: What is your vision for 2020? Marcello: We are creating a whole new class of companies that embody the “best for the world” spirit. This growing community could be supported by new entities such as, perhaps, a new chamber of commerce, a bank for B Corporations, B Corp programs with business schools and partnerships with municipalities. Together, B Corporations are showing the world that there is a more evolved way to do business; that it is very possible to stay true to yourself, and society, in business and to do so in an ethical manner. There are also multiple concrete benefits to being a B Corp, in terms of identity, branding, reputation, ability to attract impact investors and other general benefits of being part of a global network that provides knowledge sharing and group rates for service providers. So the driving factor is to be successful without causing direct or indirect harm to people and planet. Section I : Opportunities | Re-defining Success in Business 55
  56. 56. For example, we have partnered with the Mayor of New York and the New York City Economic Development Corporation to host the first “best for” program Best for NYC. It is a pilot project in which we are inviting New York City businesses to assess their performance and benchmark it against 20,000 peers. We are excited to offer similar programs to further expand the movement. Businesses that complete the Best for NYC Challenge and commit to seeking ways to improve can access business support tools and services and may be recognized as “Competing to be Best for NYC.” http://bestfor.nyc/ The full B Impact Assessment tool measures a company's performance against 200 criteria, and enables the company to benchmark their performance against other businesses. 20,000 companies have taken the shorter quick impact assessment. Image credit: sample B Impact report
  57. 57. We are creating a whole new class of companies that embody the “best for the world” spirit. Marcello Palazzi, B Lab Europe Section I : Opportunities | Re-defining Success in Business 57
  58. 58. Experts from MSLGROUP Andreoli in Brazil point out that sustainability can be a competitive advantage for companies, with examples of Brazilian businesses that are leading in sustainability. With its continental size, abundant natural resources and a civil society aware of global social and environmental challenges, Brazil can play an important role in developing innovative solutions that create value for people and companies. 3 Sustainability initiatives that work In the corporate field, Brazilian institutions have benefited from being open and innovative in sustainability. Here are three examples of Brazilian companies that are seeing benefits to reputation, growth and competitive advantage. Special: Sustainability in Brazil A Competitive Advantage SECTION I : OPPORTUNITIES
  59. 59. Braskem's sourced from sugar cane ethanol development of a green plastic, instead of the traditional fossil fuel petroleum, has paid off in many ways. Braskem is the leading producer of thermoplastic resins in the Americas and was recognized as one of world's most innovative companies by the U.S. magazine Fast Company in 2014. It is listed in the Dow Jones Sustainability Index and ISE, the sustainability index of the Brazilian stock exchange BM&FBovespa and is a signatory of the UN Global Compact since 2007. This innovative biopolymer uses mostly renewable energy in its production process and captures CO2 from the atmosphere. A world leader in green plastic 1 Section I : Opportunities | Sustainability in Brazil: A Competitive Advantage 59
  60. 60. Brazil's largest bank is the only Latin American bank that participates in the Dow Jones Sustainability Index since its creation and for 16 consecutive years. It has also been listed in the ISE index for 9 years, named the sustainable bank of the year in the Americas (Financial Times, 2012) and recognized as Brazil's most valuable brand for more than 10 consecutive years (Interbrand). Itaú Unibanco As a consequence, the bank's reputation has strengthened, accelerating business and financial performance. Fibria is the world's largest producer of eucalyptus pulp, with its operations based entirely on renewable plantations. In addition to its pulp business, it invests in renewable fuels derived from wood and biomass. This innovation has allowed Fibria to develop operational partnerships with leading companies abroad, expanding and multiplying business opportunities. Growth fuelled by renewable plantations 2 The reputation-case for business sustainability3
  61. 61. The power of incentives and recognition Incentives for corporate sustainability practices also include the recognition of outstanding companies, both domestic and multinational, that operate in Brazil. The ECO prize, promoted by the Amcham chamber of commerce, the Exame sustainability guide published by the business magazine Exame and the Sustainable Leadership Platform promoted by the consultancy Idéia Sustentável are among initiatives that recognize and encourage sustainability on the Brazilian market. Companies such as Itaú, Fibria, Natura, Promon, AES Brasil and Embrapa, among others, stand out in their market and have become benchmarks in innovative sustainable performance initiatives. Strong governance can boost credibility in sustainability Nevertheless, there is still a lot to be accomplished environmentally and socially, and Brazil's greatest challenge in sustainability probably lays in one of its fundamental aspects: governance. Governance is essential to establishing credibility and trust among the company's strategic stakeholders, affecting its brand, reputation and economic results. Brazil is in the midst of a period that is putting governance to the test. In recent years, and particularly in 2015, major corporate groups operating in the petrochemical, infrastructure and construction industries, among others, have become targets of investigations into involvement in illegal dealings. The impact on the reputation, brand and economic value of these organizations has been visible and should have long-lasting negative effects. 61Section I : Opportunities | Sustainability in Brazil: A Competitive Advantage
  62. 62. Sustainability is no longer an option Aware of this challenge, the business community has often scheduled the issue on the agendas of strategic discussion. But developing a sustainability strategy is not the same as developing a sustainable business. In a period of economic challenges such as that Brazil is going through, developing a sustainable business strategy becomes an important competitive advantage for businesses, strengthening not only economic performance but also the brand and reputation. To simultaneously enhance financial performance and sustainability, it is necessary to constantly innovate in products, processes and the company's business model. The focus on sustainable innovation is no longer optional and has become a strategic priority for all the companies, whatever the size, and for all the sectors. For more insights on Brazil, contact our team at MSLGROUP Andreoli at mslgroup.andreoli@mslgroup.com
  63. 63. The focus on sustainable innovation is no longer optional and has become a strategic priority for all the companies, whatever the size, and for all the sectors. 63Section I : Opportunities | Sustainability in Brazil: A Competitive Advantage
  64. 64. Section II: Our Chance for Change: Disruptions in Action
  65. 65. People swam in the Charles River. For Fun. Boston Globe Fast forward to today. Local agencies have made huge progress in cleaning up the river. The Charles is now considered swimmable many days of the year, and the Charles River Conservancy (CRC) is hoping to restore its potential for swimming on a permanent basis. The restoration of the Charles River demonstrates that real change is possible. The Charles River flows between Boston and Cambridge in the United States, and was notorious for being dirty. The river was so polluted that swimming in the Charles has been banned since the 1950s. Real Change is Possible Aaron Bourque, Charles River Conservancy Section II : Our Chance for Change: Disruptions in Action 65
  66. 66. Unlocking the forces of business and consumer demand An interview with Sally Uren Sally is Chief Executive at the Forum for the Future with overall responsibility for delivering the Forum's mission to create a sustainable future. She works with leading global businesses, both in one to one partnerships, and also as part of multi-stakeholder collaborations designed to address system-wide challenges. @sallyuren People’s Insights: What do you see as the top 3 priorities for businesses in the next few years? Sally: PI: We hear a lot about sustainability in the West. What is the potential in other regions? Sally: Here's what I'd like to see as their priorities. First, I'd love to see businesses creating innovative business models that can help them deliver more fully on their purpose. A company's purpose isn't selling stuff, it's about providing access to the things we need, nutrition, warmth, and even delight. In order to deliver on purpose, we're going to need to see some new business models. Second, I'd love to see businesses better understand how to do their bit to bring down CO2 emissions, because climate change is quite possibly the biggest threat we have right now. Third, I'd like to see businesses unlock their potential as a force for societal good. There are thousands and thousands of businesses listed on stock markets outside of the U.S. and Europe. The problem is they have not yet woken up to the potential that sustainability represents. In the work we do in Asia-Pacific, we partner with large organizations and conglomerates. Their potential to create massive change is enormous and they are really interested in sustainability. So that's the story of optimism. That's where the energy is going.
  67. 67. PI: bringing about change? Sally: PI: What about millennials - what role might they play? Sally: What role can the end-consumer play in Consumers are one of the market levers that you need to pull to create change at scale. They’re not the only one and we can’t expect whole-scale behavior change to deliver the solutions that we need. But it’s really important. So, what we have to do is unlock the potential of brands to create the desire for more sustainable products. This can help unlock consumer demand which in turn will help brands accelerate their progress in delivering more sustainable products and services. The reality is that the shift we need to see will come from government, business, and civil society working together - that’s system innovation. It’s not going to come from any of those three working in isolation. Businesses tend to fall into two camps when it comes to millennials. There’s a camp that doesn’t understand this whole notion of millennials and is just not interested. Then, you have businesses that think more long term and more creatively, and understand that millennials can be the big unlock for driving demand for sustainability. There’s often nowhere between those two views. But we’re probably placing too much hope on millennials. It’s quite easy to say oh let’s wait for millennials to unlock demand. That might actually be too late. Millennials aren’t the Trojan horse, they’re not the silver bullet - because there is no silver bullet. Whilst it’s easier to talk to millennials in many respects about this agenda, we should equally be focusing on unlocking demand from older generations, like baby boomers. We just can’t rely on millennials, that’s a high-risk strategy. It has to be everyone. : Probably solar. I’m inspired by the huge number of markets where solar has now reached grid-parity. And, well, the sun is there - let’s harness it! PI: Last question, which single green technology are you most excited by? Sally Section II : Unlocking the forces of business and consumer demand 67
  68. 68. Five Disruptions in Action Nidhi Chimnani Director, Research & Insights, MSLGROUP @nidhichimnani Melanie Joe Consultant, Research & Insights, MSLGROUP @melanie_joe In this section, our insights team highlights five broad trends that point to a real chance for change. We feature examples of initiatives led by businesses, organizations and people, and shine the spotlight on five inspiring businesses at the forefront of sustainability.
  69. 69. The future is here, it's just not evenly distributed. William Gibson Section II : Five Disruptions in Action 69
  70. 70. MAXIMIZE RESOURCES Circular Economy Sharing Culture Upcycling TM Spotlight: Levi’s Water<Less 1 From startups to well-established brands, businesses are constantly finding new ways to reduce their footprint and maximize their use of existing resources. Not only is this good for the planet, it is also good for businesses. Efficient use of existing materials keeps costs down. Re-use and recycling of materials helps reduce footprint and ensures a sound supply of materials in a resource-constrained world. Governments and people are waking up to the potential as well. Governments are encouraging sustainable development and people are self- organizing to maximize their own use of products. Overall, there's an increasing recognition that there's wealth in waste. Sustainable development is also good for reputation and engagement of all stakeholders.
  71. 71. $500 MILLION Value of the 7.5 million tons of extractable plastic in the oceans The Ocean Cleanup $750 BILLION Cost of producing the 1.3 billion tons of food that we waste globally every year United Nations 700,000 TONS Amount of waste that Sweden imports, to provide heat and electricity locally sweden.se The Mad Crab art installation at Fort Kochi, India, created with waste plastics that threaten the marine ecosystem. Elena Mirage / Shutterstock.com Section II : Five Disruptions in Action | Maximize Resources 71
  72. 72. One of the ways we can maximize resources is by developing circular economies, in which products and by-products are systematically re-used, recycled or re-manufactured. This approach can boost economic growth and job creation, and is supported by organizations like the Ellen MacArthur Foundation and the World Economic Forum (WEF), large businesses including Cisco and Kingfisher, and increasingly, governments. MAXIMIZE RESOURCES 100,000 NEW JOBS That could be created within the next five years, if companies adopt circular supply chains WEF, the Ellen MacArthur Foundation and McKinsey $1 TRILLION Annual benefits that could be generated by 2025 for the global economy, if companies adopt circular supply chains WEF, the Ellen MacArthur Foundation and McKinsey 1 Our mission is to reveal the value in plastic waste. Pound for pound, plastic is worth more than steel. - David Katz, Founder and CEO The Plastic Bank ” Circular economy Bringing resources back into the system
  73. 73. A preview of Project Ara, a modular smart phone by Google, inspired by Phonebloks Yerdle: How Many Items in the Average Home? 300,000! For some businesses, circular economy goals can be achieved by re-designing products and services. For example, Philips started selling lighting as-a-service to cities and large corporate customers to manage their energy use and to boost end-of-life collection rates. Google is currently developing ProjectAra - a modular smart phone that enables people to replace individual modules to upgrade or repair their phones, rather than replace the entire device. Dell is experimenting with the use of bamboo, mushrooms and wheat straw to create green packaging that is renewable and biodegradable. Levi Strauss minimizes the number of materials used in its Dockers Wellthread products to enable easier recycling. In addition to saving on material costs, recycle programs can also unearth new streams of savings or revenue. For example, telecom provider Sprint avoided $1 billion in costs by using remanufactured phones as replacement devices in its handset insurance program. Electronics retailer Best Buy has collected 1 billion pounds of electronics and appliances for recycling at its stores, on behalf of electronics manufacturers and recyclers. The circular economy calls for new thinking and significant change. For businesses, this might mean creating infrastructure to enable more recycling. For example, aluminum producer Novelis promotes consumer recycling of aluminum cans to help ensure a sound supply of used aluminum - crucial for the company to meet its goal of using 80% recycled aluminum inputs by 2020. Coffee capsule producer Nespresso has introduced 14,000 collection points in 34 countries and doorstep collection in 15 countries to collect capsules for recycling. Cosmetics maker LUSH is piloting the use of Social Plastic for packaging - plastic that has been recycled by The Plastic Bank and sourced from pickers in disadvantaged communities. Businesses are also investing in local municipal projects to keep recyclables out of landfills and return them to the economy Examples of initiatives include Closed Loop Fund and Marks & Spencer's investment in Somerset County. End-consumers too are becoming more conscious about the waste they produce. The popularity of peer-to-peer platforms and social media projects is helping fuel a slow shift away from today's use-and-throw culture. Platforms like eBay (and its local variants), Yerdle (funded in part by Patagonia) and Stuffstr (recipient of the Target Award at Sustainable Brands '15) encourage people to repair, re-use, resell, recycle or donate their stuff. Social media projects promote zero waste lifestyles (Tedx: Why I Live a Zero Waste Life) and minimalist fashion (Project 333). In addition, communities like iFixit support people who want to repair their stuff with free how-to-guides. A CULTURE OF MAKING STUFF LAST LONGER NEW INFRASTRUCTURE, DESIGNS AND MODELS The Novelis evercan™ uses 90% of recycled aluminum and is the world's first certified high recycled content aluminum can sheet Section II : Five Disruptions in Action | Maximize Resources 73
  74. 74. Sharing culture Shifting from ownership to access People's relationship with things have changed in recent years as a result of, among other things, the smart phone boom, the recession and concerns about the climate. This exchange works for both sides - owners can monetize their idle assets and renters get access to goods at potentially lower rates. It's good for the environment too, as renters can avoid the environmental footprint of owning their own separate products. It is now possible, acceptable and even practical for people to forgo ownership in exchange for access to other people's things (through rentals, swaps or donations). 113 MILLION The number of sharers in Canada, the United Kingdom and the United States - about 40% of the adult population Vision Critical and Crowd Companies MAXIMIZE RESOURCES1
  75. 75. LE TOTE - Always have something new to wear Businesses are responding to people’s willingness to “share” or “access” by offering new, flexible formats of consumption. This is especially evident in the travel and fashion industries. In fashion, online websites offer rentals to individual clothing items and accessories, and even monthly subscriptions to entire catalogs. In travel, businesses, and even cities, offer subscriptions to car-sharing (Zipcar in North America and Europe) and bike-sharing services (Vélib' in Paris). For example, LE TOTE sends subscribers a ‘tote’ full of clothing to wear for a few days - people can buy clothes that they want to keep and return the rest to receive a new collection. In the physical world, a store in Athens called Skoros allows people to give or take used or unused clothes and goods, to promote a spirit of anti-consumerism. NEW MODELS OF CONSUMPTION The popularity of peer-to-peer marketplaces is inspiring similar online marketplaces for B2B exchanges. For example, Floow2 enables sharing of business equipment (such as construction machinery and mobile MRIs) and services. Some businesses are also creating their own networks - the newly established Materials Marketplace enables 20 businesses in the United States to exchange and re-use industrial by-products. BUSINESS TO BUSINESS MARKETPLACES The sharing economy builds on the concept that our unused stuff is potentially valuable to others. Over the last few years, people have rented out everything from their spare bedrooms (Airbnb) and spare seats in their car (BlaBlaCar) to idle sporting goods (StokeShare). The chase to identify and monetize more “idle assets” has led some people to their rooftops. Rather than letting their roofs 'stay idle,' people can use them to generate solar energy. This energy can power their houses and lower electricity bills, or be sold to solar grids, to generate income. To promote more people to switch to solar, some companies (like SolarCity) offer to front the cost of installing the solar panels. RECOGNIZING THE VALUE OF “IDLE ASSETS” Airbnb - the largest marketplace for accommodation, with 1.5 million listings in over 190 countries Section II : Five Disruptions in Action | Maximize Resources 75
  76. 76. Upcycling Enhancing the value of existing products The upcycling movement acknowledges that some value is lost during recycling - for example, the energy, water, coloring or labor used in creating the product. The upcycling approach is to retain the current value of the product, and to enrich it to give it greater value. This is a nascent concept - but given its potential to create great stories, it could become a popular one. MAXIMIZE RESOURCES1 Recycling… I call it down- cycling. They smash bricks, they smash everything. What we need is up-cycling, where old products are given more value, not less. Reiner Pilz
  77. 77. Project LUV Seat: Southwest Airlines upcycled old leather seats and added value to communities in Nairobi, Kenya, Malawi and the United States Some designers have also built businesses that specialize in selling products made from extra materials “rescued” from factories and manufacturers (like Looptworks). Artists are the natural champions of the upcycling movement, finding used or vintage products and re-working them to create pieces of art. Communities like Remade in Britain and, to some degree, Etsy offer a wide variety of upcycled ware - ranging from clothing and accessories to furniture and 'unique gifts.’ PRE-LOVED, SALVAGED, REFURBISHED, UPCYCLED! CREATING NEW PRODUCTS AND SOCIAL GOOD Southwest Airlines demonstrated the potential of upcycling to create more than just new products, with project LUV Seat. The airlines spent a year determining the best use of its stock of 43 acres of old leather seats, and finally decided to use it for social good. Some of the leather was donated to workshops in Africa, where disadvantaged people were taught how to convert it into footballs, shoes, bags and wallets. These in turn were donated to local non-profits. Some of the leather was also given to Looptworks, to create premium duffel bags, tote bags and backpacks. Section II : Five Disruptions in Action | Maximize Resources 77
  78. 78. Levi's Water<Less™ (More from Michael Kobori at page 96) In conjunction with that announcement, we launched a consumer education campaign to help consumers understand the environmental impact of their washing habits. By taking the quiz, consumers were able to find out how much water and energy they used compared with average consumers in the U.S., the U.K., France and China. Between World Water Day and Earth Day, consumers were encouraged to take action and make a pledge to wash their jeans less often. More than 25,000 individuals took the quiz and pledged to wash their jeans less often. “Are You Ready to Come Clean?” In 2015, Levi Strauss & Co. continued to reinforce its water stewardship through the release of our new Lifecycle Assessment (LCA) and the milestone announcement that The LCA announcement examined the environmental impact of LS&Co. products, probing into the environmental impacts of cotton in key growing regions, apparel production and distribution in a range of locations, and consumer washing and drying habits in key markets. we had saved more than 1 billion liters of water through Levi's® Water<Less™ process and other water savings efforts. MAXIMIZE RESOURCES1 Michael Kobori, Levi Strauss & Co. Vice President of Sustainability, @KoboriGrillsCSR
  79. 79. ARE YOU READY TO COME CLEAN? TAKE THE QUIZ & PLEDGE TO WASH LESS. START Section II : Five Disruptions in Action | Maximize Resources The Levi Strauss & Co. quiz enables consumers to find out how much water and energy they used, compared with average consumers in the U.S., the U.K., France and China. 79
  80. 80. Purpose Create shared value Net positive Spotlight: Sodexo's Better Tomorrow Plan Traditionally, organizations have created positive impact through CSR programs that promote local communities in which they operate, or through employee engagement activities that encourage community or environmental actions. - their purpose and especially their core business. In addition, choosing 'better' suppliers, creating shared value, leveraging new social trends (like peer-to-peer lending), and adjusting business models so that every consumer purchase leads to a 'good' outcome. Some businesses are also aspiring to achieve a net positive effect, where they contribute more to the environment and society than they take out of it. CSR program continue to be important, and are increasingly becoming more aligned to the organization's raison d'etre businesses are exploring new ways to create positive handprints: CREATE POSITIVE HANDPRINTS 2
  81. 81. 83% MILLENNIALS from around the world who want business to get more involved in solving social issues MSLGROUP's The Future of Business Citizenship study 45 MILLION Pairs of shoes donated by TOMS since 2006 as part of its one for one model TOMS Section II : Five Disruptions in Action | Create Positive Handprints 81
  82. 82. Purpose Aligning people and business An important first step for a business or organization is to find a purpose - one that is closely aligned with its core business and its people. This common purpose can help align the organization's activities and CSR efforts, and act as a rallying force for stakeholders. Millennials in particular expect purpose-driven activities from brands and are keen to participate as 'citizen partners'. 69% MILLENNIALS Want business to make it easier for consumers to get involved in societal change The Future of Business Citizenship study CREATE POSITIVE HANDPRINTS 2 When you have a purpose, inconsistencies start showing up - Eileen Boone on CVS's decision to remove all tobacco products CVS ”
  83. 83. PURPOSE, PEOPLE AND BUSINESS THE BUY AND GIVE MODEL A clear purpose can provide a strong narrative to a brand's story and can act as a compass for its vision and future goals. U.S. retail pharmacy CVS is a great example. The company recently demonstrated its commitment to the healthcare business by changing its name from CVS Caremark to CVS Health, and by removing all tobacco products from its shelves. CVS invited smokers to quit with them and mobilized thousands to try out smoking cessation products and counselling. Three months after it stopped selling tobacco, CVS posted a 13% revenue growth (for Q42014). Similarly, food chain Panera Bread’s commitment to good food has led it to publish a No-No List of ingredients it intends to phase out. For some organizations, the original Buy 1, Give 1 model might actually be appropriate - at least for now. For example, social enterprise Mealshare donates a meal for every qualifying dish bought at participating restaurants. Student-lending marketplace Common Bonds funds the education of a child in a developing nation for every degree funded on its platform. Shoe-brand TOMS launched a movement in 2006 with its Buy 1, Give 1 model - for every shoe it sold, TOMS committed to giving a pair to someone in need. TOMS expanded this model to its subsequent businesses, and other companies like Skechers followed suit. The model has been tremendously popular amongst consumers - it guarantees that every purchase is linked to an act of social good. But the scale of success - millions of shoes donated - raised a serious concern. Flooding disadvantaged markets with free shoes would harm local shoe- businesses, and doesn't address the core issues driving poverty in those markets. The model has thus evolved to Buy and Give - with donations varying to meet different needs. For example, TOMS' eye-wear business now gives sight by covering the cost of glasses, sight- restoring surgery or medical treatment, and its coffee business gives safe water to people in need. A year after it stopped selling tobacco in stores, CVS conducted a study to determine the impact of their decision on sales of cigarette packages and nicotine patch packages across U.S. retailers Similarly, eye-wear seller Warby Parker supports NGOs that provide training in eye-care and affordable glasses. Waterless car wash Wype donates $1 to Charity:Water for every transaction. Section II : Five Disruptions in Action | Create Positive Handprints People can play a key role in helping a brand fulfill its purpose. For example, Starbuck’s community of employees and customers help it meet its ambitious goal of 1 million hours of community service per year. Ikea is realizing its sustainability goals by providing people with access to affordable energy-saving LED lighting products - in fact, Ikea just completed its switch to LED-only lighting inventory. https://www.cvshealth.com/impact -of-tobacco-removal/ 83
  84. 84. The concept of Create Shared Value (CSV) was introduced in 2006 and offers a holistic vision for the role of business in society: development of communities is good for business. CSV promotes fair wages, skill training, sustainable environmental practices, investment in health, education, infrastructure and so on. These elements can help boost the long term sustainability of the business by increasing reliability of material resources, increasing operational efficiency and safeguarding human resources. Several large brands have embraced the concept of shared value and are driving large-scale social development, often in collaboration with international and local organizations. Create shared value Investing in the future $3-4 The value that Levi Strauss earns on every dollar invested in improving lives of factory workers Levi Strauss & Co. CSV focuses on how we can mobilize capitalism for social change… It is not about balancing stakeholders or behaving ethically, but rather seeing social problems as representations of business opportunities yet to be met - Michael Porter ” Professor, Harvard Business School and Co-Founder, FSG CREATE POSITIVE HANDPRINTS 2
  85. 85. SOCIAL DEVELOPMENT: AN INVESTMENT New technologies can help accelerate the speed and scale of social development. For example, mobile banking service M-PESA, developed by Vodafone, makes financial services more accessible especially in rural areas. M-PESA has been most successful in Kenya, where 20 million people use it to send and receive money and to pay bills. TECHNOLOGY: A CATALYST Last year, the HP Company Foundation launched a five-year partnership with Kiva to encourage HP employees to get involved. The foundation provides $25 credits to HP's employees to lend to borrowers. 150,000 HP employees have participated and have lent a total of $9.7 million. (Via: Sustainable Brands' The New Financial Metrics) An overview of HP's Matter to a Million program, it's partnership with Kiva that encourages HP employees to make microloans to entrepreneurs CSV programs are often designed for long-term benefit. Another example is Cisco whose Networking Academy program trains 1 million people every year in ICT skills, to help meet the demand for ICT professionals. Cisco provides course curriculum and learning tools to educational institutions in 170 countries and has reached 5 million students since the academy's inception. Shared value programs can be extensive and cover vast operations and geographies. Nestle has developed 38 CSV commitments, accompanied by policies, standards and auditing to ensure compliance. Technology has also enabled large scale peer-to-peer lending across geographies. Since 2005, Kiva has enabled 1.3 million lenders to make micro-loans to 1.7 million borrowers in 83 countries. Section II : Five Disruptions in Action | Create Positive Handprints 85
  86. 86. The Net Positive approach lies at the forefront of sustainability and points to a future where business makes an overall positive impact on environment and society. A bold approach, Net Positive has already attracted several big businesses as early adopters. Organizations like the Forum for the Future, WWF UK and The Climate Group have created working groups around this concept to develop supporting principles, strategies and measurement. Net positive Amplifying the positive impact of business 10x The net benefit that Dell intends to generate from IT by 2020 Dell Inspire and enable millions of customers to live a more sustainable life at home Ikea CREATE POSITIVE HANDPRINTS 2 ”
  87. 87. Dell technology enables the design and production of sustainable products, like Green Toys, which has recycled 24 million plastic milk containers to create sustainable toys Steve Howard, Chief Sustainability Officer at IKEAGroup discusses the goal of becoming Forest Positive by 2020. IN PURSUIT OF POSITIVE IMPACT TRANSFORMING “OUR” FOOTPRINT Dell embarked on its Net Positive journey with research studies to evaluate the potential of technology, and guide its own - and its clients' - investments in infrastructure and IT. For its first study, Dell partnered with the Arizona State University to understand the social, economic and environmental benefits of online learning, in terms of the graduate's future earning potential, decreased dependency on state welfare, and footprint savings on travel and university infrastructure. Dell is now studying the benefits of its own flexible work policies, and will soon expand its methodology to healthcare, logistics and municipal operations. Section II : Five Disruptions in Action | Create Positive Handprints In its commitment to be People and Planet Positive, Ikea considers the footprint of its products all the way from forests and fields, to its own operations and the homes of its customers. With goals to be resource and energy independent by 2020, Ikea is investing heavily in renewable energy, purchasing and managing its own forests, and sourcing raw materials from more sustainable sources. Ikea is also introducing products that are more energy and water efficient, and products that help reduce or sort waste. 87
  88. 88. Sodexo's Better Tomorrow Plan CREATE POSITIVE HANDPRINTS 2 John Friedman Communications Director, Sodexo, and author of PR 2.0: How Digital Media Can Help You Build A Sustainable Brand Corporate Responsibility @JohnFriedman The strength of Sodexo's corporate responsibility effort arises from our mission. The Better Tomorrow Plan defines the strategy Sodexo is pursuing as a responsible company. The plan revolves around three pillars that provide a consistent and structured approach for all of our corporate responsibility efforts. The pillars are: - Our fundamental vision, mission and values - Our commitments and initiatives - Dialogue and joint collective actions with multiple stakeholders At Sodexo, we know that the only way to optimize and achieve our corporate responsibility commitments is to engage with key stakeholders, so Sodexo maintains an ongoing dialogue with our stakeholder groups. + + We Do + We Engage We Are + + clients + customers + suppliers First, our 422,000 who are the 'face' of Sodexo with clients and consumers and within their local communities. We know that success of our efforts depends heavily on our ability to engage with them. Second, our - by supporting their sustainability strategies and contributing to strengthening their efforts and reputations - we are reaching beyond our own 'footprint' to make a real difference. Likewise, as a company that touches the lives of 75 million people every day, we embrace the tremendous opportunity we have to help our to adopt more sustainable lifestyles. Sodexo's collaboration with our and throughout our value chain was cited by RobecoSAM (in its 2013 Sustainability Yearbook) as one of the hallmarks of our continued sustainability leadership. employees
  89. 89. Sodexo WasteLESS Week Reductions in waste that are observable over a five day period inspire continued actions and so WasteLESS Week actually encourages efforts all year long, which is our ultimate goal. John Friedman, Sodexo Section II : Five Disruptions in Action | Create Positive Handprints Sodexo runs this five-day campaign for our clients (and our own sites) around the world each October. It empowers consumers, clients and Sodexo employees to reduce waste by celebrating the benefits of wasting less food, water, energy, paper and raw materials - including cleaner air more natural spaces and helping share our planet's natural resources. Through on-site materials such as posters, videos and activities, we showcase the tangible benefits people experience when they waste less. Using local information and data, the materials can be customized to show people how their actions have local as well as global benefits. 89
  90. 90. As businesses and organizations dive deeper into sustainability, it's quickly apparent that no one entity can solve today's pressing problems alone. After all, no business is an island. Businesses are striking partnerships with a range of organizations, competitors, governments, startups and individuals to achieve their sustainability plans. Some businesses, like Tesla, are embracing open source philosophy and are forgoing patents to encourage adoption and development of cleaner technologies. It's an exciting time for sustainability, we have many rules to re-write, together. Partnerships are key to inventing solutions, maintaining costs, driving scale and meeting common sustainability goals. COLLABORATE ACROSS BOUNDARIES 3 Open Innovation Partnerships Spotlight: Levi's: The Race to the Top
  91. 91. If you want to go fast, go alone. If you want to go far, go together. African Proverb 100 MILLION The number of new vehicles produced annually and globally, much higher than Tesla's capacity of 35,000 cars per year Elon Musk, CEO, Tesla Image Credit: Tesla Motors Image Credit: Tesla Motors Section II : Five Disruptions in Action | Collaborate Across Boundaries 91

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