Science-based Goal-setting as the Holy Grail of Managing Non-Financial Performance: The Future-Fit Business Benchmark and PivotGoals Bob Willard

1. Science-based Goal-setting as the Holy Grail
of Managing Non-Financial Performance: The
Future-Fit Business Benchmark and
PivotGoals

2. SB New Metrics
Science-based Goal-setting
as the Holy Grail of Managing
Non-Financial Performance:
The Future-Fit Business Benchmark
and PivotGoals
bobwillard@sympatico.ca sustainabilityadvantage.com
FUTURE-FIT BUSINESS
BENCHMARK:
Who? What? Why? When?

3. FUTURE-FIT BUSINESS BENCHMARK
futurefitbusiness.org
• Fall 2014: Public Draft 1 (Draft Goals)
• June 2015: Public Draft 2 (Draft Goals & KPIs)
• YE 2015: Release 1 (Final Goals & KPIs)
• Free, open-source resource from FFF
• Benchmark; “Intel Inside” other standards
• First of five FF benchmarks
Based on best-available science, it defines the
necessary and sufficient set of goals and associated KPIs
for any company that wants to be fit for the future
on a more carbon-constrained, water-constrained,
resource-constrained, crowded, and finite planet.

4. WHO BY
… with support and guidance from 100+ other sustainability experts over three years
Key Contributors & Strategic Advisors

5. WHO FOR
•Companies: Adopt future-fit goals as aspirational /ultimate
goals, and prioritize actions to close performance gaps
•Investors: Integrate KPIs into their methodologies to assess
lowest-risk companies in which to invest their capital
•Raters and Standards Organizations: Integrate goals and
KPIs into reporting and rating methodologies and algorithms
•Consultants (For-profits and NGOs): Integrate KPIs into
proprietary assessment and improvement methodologies
•Business Schools: Business models for future-fit companies
•Policy Makers: Guidance for regulations and incentives

6. How would we recognize a truly sustainable,
future-fit business if we saw one?
How much is enough?
“Mirror, mirror …”
TWO QUESTIONS

7. FOURTH BENCHMARK
Required
state
Baseline
year
Other
company
Short-
term
goals
Other
company
Company today
Current
state
Future-Fit Company
 Past Future 

8. FUTURE-FIT BUSINESS
If it were to operate forever, it would not only do no harm,
it could do well by doing some net good.
A future-fit business creates value
while doing nothing to undermine the
possibility that humans and other life
will flourish on Earth forever.

9. SCIENCE-BASED METHODOLOGY
3-Step Methodology
8 Science-Based
System Conditions
7
Business
Principles
20 Goals
& KPIs
3 Environmental
System Conditions
2 Environmental
Business
Principles
10 Environmental
Goals
and KPIs
5 Social
System Conditions
5 Social
Business
Principles
10 Social
Goals
and KPIs
wiki.futurefitbusiness.org/overview

10. 10 Environmental Goals
•All renewable energy
•Sustainable water use
•All materials from responsibly-
managed sources
--------------------------------
•No physical presence impact
•No harmful operations emissions
•No GHGs from operations
--------------------------------
•No harmful product emissions
•No GHGs from products
--------------------------------
•All products designed for end-of-life
repurposing
•Access to end-of-life repurposing services
10 Social Goals
• Employees
• Foster health
• Pay at least a living wage
• Equal pay for equal work
• Fair employment terms
• Concerns addressed
• Community
• Concerns addressed
• Customers
• Concerns addressed
• Informed about impacts
•Boards & Owners
• Fair taxes paid
• Lobbying for FF outcomes
20 GOALS
All goals include impacts in the company’s extended operations

11. Renewable energy fitness =
Renewable energy consumed ÷ Total energy consumed
Product emissions fitness =
Products that do not contain any harmful substances ÷ Total products
Product GHG fitness: =
Products that do not force GHG emissions ÷ Total products
SAMPLE ENVIRONMENTAL KPIs
wiki.futurefitbusiness.org/KPIs

12. Employees
• Employee health fitness =
Employees at sites with a future-fit health program ÷ Total employees
• Living wage fitness =
Employees receiving at least a living wage ÷ Total employees
• Employment terms fitness =
Employees at sites using future-fit employment terms ÷ Total employees
• Employee concerns fitness =
Employees at sites with future-fit grievance mechanism ÷ Total employees
Communities
• Communities concerns addressed =
Communities with future-fit grievance mechanism ÷ Total communities
Customers
• Informed customers fitness =
Products with future-fit labelling ÷ Total products
SAMPLE SOCIAL KPIs
wiki.futurefitbusiness.org/KPIs

13. F2B2 OVERVIEW
Attaining science-based
goals …
… enables the business to be
fit for the future
8
System
Conditions
7
Business
Principles
20 Goals
& KPIs
16 Global
Issues /
Risks
mitigated
50 Potential Business Case Benefits
Avoids 28
Downside Risks
if do not meet the
Goals
Captures 22
Upside Opportunities
if do meet the Goals
3
Environ-
mental
2
Environ-
mental
10
Environ-
mental
8
Environ-
mental
18
related to not
meeting
Environmental
Goals
10
related to
meeting
Environ-
mental
goals
5
related
to
meeting
both
Environ-
mental
and
Social
Goals
5
Social
5
Social
10
Social
8
Social
10
related to not
meeting Social
Goals
7
related to
meeting
Social
goals
wiki.futurefitbusiness.org/overview

14. 8 Environmentally-related
•Climate destabilization
•Ocean acidification
•Ecosystem degradation
•Access to mined materials
•Access to renewable materials
•Energy crisis
•Fresh water crisis
•Biodiversity crisis
•...
8 Society-related
•Health crisis
•Food crisis
•Financial inequality
•Infrastructure crisis
•Governance failure
•Education crisis
•Social instability
•Erosion of trust
•...
GLOBAL RISKS
WEF’s “Global Risks 2014,” WEF’s “Global Risks 2015,” KPMG’s “Expect the Unexpected,” Forum for the
Future’s “Horizon cards,” Johan Rockström’s “Planetary Boundaries,” and Kate Raworth’s “Social Doughnut.”

15. F2B2 OVERVIEW
Attaining science-based
goals …
… enables the business to be
fit for the future
8
System
Conditions
7
Business
Principles
20
Goals
& KPIs
16
Global
Issues /
Risks
mitigated
50 Potential Business Benefits
Avoids 28
Downside Risks
if do not meet the
Goals
Captures 22
Upside Opportunities
if do meet the Goals
3
Environ-
mental
2
Environ-
mental
10
Environ-
mental
8
Environ-
mental
18
related to not meeting
Environmental Goals
10
related to
meeting
Environ-
mental
goals
5
related
to
meeting
both
Environ-
mental
and
Social
Goals
5
Social
5
Social
10
Social
8
Social
10
related to not meeting
Social Goals
7
related to
meeting
Social
goals
wiki.futurefitbusiness.org/overview

16. F2B2 BENEFITS
Environmentally-relatedSocially-related

17. F2B2 OVERVIEW
Attaining science-based
goals …
… enables the business to be
fit for the future
8
System
Conditions
7
Business
Principles
20
Goals
& KPIs
16
Global
Issues /
Risks
mitigated
50 Potential Business Benefits
Avoids 28
Downside Risks
if do not meet the
Goals
Captures 22
Upside Opportunities
if do meet the Goals
3
Environ-
mental
2
Environ-
mental
10
Environ-
mental
8
Environ-
mental
18
related to not meeting
Environmental Goals
10
related to
meeting
Environ-
mental
goals
5
related
to
meeting
both
Environ-
mental
and
Social
Goals
5
Social
5
Social
10
Social
8
Social
10
related to not meeting
Social Goals
7
related to
meeting
Social
goals
wiki.futurefitbusiness.org/overview

18. FUTURE-FIT BUSINESS BENCHMARK
futurefitbusiness.org
• Fall 2014: Public Draft 1 (Draft Goals)
• June 2015: Public Draft 2 (Draft Goals & KPIs)
• YE 2015: Release 1 (Final Goals & KPIs)
• Free, open-source resource from FFF
• Benchmark; “Intel Inside” other standards
• First of five FF benchmarks
Based on best-available science, it defines the
necessary and sufficient set of goals and associated KPIs
for any company that wants to be fit for the future
on a more carbon-constrained, water-constrained,
resource-constrained, crowded, and finite planet.

19. SB New Metrics
Science-based Goal-setting
as the Holy Grail of Managing
Non-Financial Performance:
The Future-Fit Business Benchmark
and PivotGoals
bobwillard@sympatico.ca sustainabilityadvantage.com
FUTURE-FIT BUSINESS
BENCHMARK:
Who? What? Why? When?