Raising Seed Capital by Steve Schlafman at RRE Ventures
How can brands truly help sustainable change?
1. How can brands truly help
sustainable change?
Prepared for Sheffield University
by Paula Oliveira
13th March 2019
2. Sustainability focuses on
meeting the needs of the
present without
compromising the ability
of future generations to
meet their needs.
3.
4. People
Waste Management Supply Chain Disposal
Government
Employees
Suppliers
Shareholders
Community
Customers
Systemic
thinking
Sustainability ‘evolution’
5.
6.
7. “It sounds incredibly complicated on top
of companies’ operational activities and
competitive pressures… isn’t this the
role of governments?”
Why bother?
16. Sustainability is a new norm…
1. Don’t forget that products and services must be relevant to customers (M&S)
2. Leadership takes courage, not perfection (H&M)
3. It should be a holistic exercise (Patagonia)
4. It is an opportunity to challenge business models (IKEA)
5. It is an opportunity to innovate by solving big problems (Parley, adidas)
6. It is easier to do things right from the start (Start-ups)
7. Nobody has all the answers (Collaboration)
18. Creating value through sustainability
Compliance Cost saving Demand
Lower risk of
loosing customers
Increase demand
- reputation
Lower risk
Increase demand
- sust. innovation
Increasing
regulation
Lower insurance
premiums
Lower risk rates
in valuation
Energy efficiency
Process
reengineering
19. Corporate Citizenship impact on consumers and businesses behavior
(Interbrand, 2011)
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Choice Commitment Advocacy Favourability
Consumers Business
20. 93% of global consumers expect more of the brands
they use to support social and environmental issues.
Retail Industry Leaders Association, 2018
75% actively research the behaviour and policies of
the brands they buy.
JWT Intelligence/Sonar, 2015
66% of consumers around the world are willing to
pay more for sustainable goods (73% of millennials).
Nielsen, 2018
Studies show customers care and pay more for sustainable products
2014
Percentage point
change from 2011
Global Average
Latin America
Middle East / Africa
North America
Europe
+10
+9
+13
+10
+7
+8
Source: Nielsen Global Survey of Corporate Social Responsibility. Q1 2014
Percent willing to pay extra for products and services from
companies committed to positive social and environmental impact
22. Investors are alert…
‘High sustainability companies’ significantly outperform their counterparts over the long-
term, both in terms of stock markets as well as accounting performance.
For example, investing $1 in the beginning of 1993 in a portfolio of ‘sustainable firms’
would give you $22.6 by the end of 2010 based on market prices versus $15.4 in what
the authors call ‘traditional firms’.
Value Research,
2018
23. Companies that implement a corporate vision around a social
purpose are growing in value
STOCK PRICE PERFORMANCE DURING 1ST YEAR OF TRANSFORMATION
Percent Change
First Year of
Transformation
+8%
+53%
+13%
Interbrand, 2016
“An authentic and
well-communicated
purpose can
contribute
up to 17% of a
company’s financial
performance”
Burson-Marsteller, Y&R
24.
25.
26. Sustainability creates business value…
1. Compliance, lower risk, cost saving, demand…
2. Attractiveness and premium across categories
3. Growth in ESG/responsible investments
4. Don’t fake it… the world is more transparent
34. For business…
1. Understand your purpose and your ecosystem
2. Identify what will guarantee the sustainability of
the business and where you can add value
3. Collaborate for change, differentiate for impact
4. Act responsibly and make it a principle for all
5. Don’t forget the basics
Business Brand
Sustainability
A business that will
sustain in the future
35. For us…
1. We’re all decision makers… think bigger, systemically
2. Identify where you can and want to make a difference
3. Collaborate for change, differentiate for impact – you are unique
4. Act responsibly, mindfully and don’t worry if you’re the only one – you’re right
5. Don’t forget what really matters.
