A global revolution is in full swing, and the Sustainable Brands Conference is where sustainability, brand and innovation leaders gather to learn, share and strategize to shape the future. SB'12 was the largest gathering to date, a kinetic convergence of innovators from more than 150 companies from around the world finding new ways to create monumental disruption in traditional models of commerce and consumption.

1. RESEARCH ROUNDTABLE:
LATEST BUSINESS-TO-BUSINESS INSIGHTS FROM SLM’S TOP RESEARCH PICKS
David
Schatsky,
Green
Research
Daniel
Aronson,
Deloi7e
Sheila
Bonini,
McKinsey
Company
Lucy
Shea,
Futerra
Katherine
Blue,
KPMG
COMMUNICATIONS
© 2012 FUTERRA SUSTAINABILITY WWW.FUTERRA.CO.UK
Chris
Congdon,
Steelcase

2. RESEARCH ROUNDTABLE:
LATEST BUSINESS-TO-BUSINESS INSIGHTS FROM SLM’S TOP RESEARCH PICKS
© 2012 FUTERRA SUSTAINABILITY COMMUNICATIONS WWW.FUTERRA.CO.UK
Lucy
Shea,
Futerra

3. Planet Brands
Research Findings
Lucy Shea, CEO Futerra
© 2012 FUTERRA SUSTAINABILITY COMMUNICATIONS WWW.FUTERRA.CO.UK

4. Hypothesis
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5. © 2012 FUTERRA SUSTAINABILITY COMMUNICATIONS WWW.FUTERRA.CO.UK

6. “A brand is essentially a container
for a customer’s complete experience
with the product or company.”
Sergio Zyman
© 2012 FUTERRA SUSTAINABILITY COMMUNICATIONS WWW.FUTERRA.CO.UK

7. © 2012 FUTERRA SUSTAINABILITY COMMUNICATIONS WWW.FUTERRA.CO.UK

8. © 2012 FUTERRA SUSTAINABILITY COMMUNICATIONS WWW.FUTERRA.CO.UK

9. © 2012 FUTERRA SUSTAINABILITY COMMUNICATIONS WWW.FUTERRA.CO.UK

10. © 2012 FUTERRA SUSTAINABILITY COMMUNICATIONS WWW.FUTERRA.CO.UK

11. © 2012 FUTERRA SUSTAINABILITY COMMUNICATIONS WWW.FUTERRA.CO.UK

12. © 2012 FUTERRA SUSTAINABILITY COMMUNICATIONS WWW.FUTERRA.CO.UK

13. Methodology
© 2012 FUTERRA SUSTAINABILITY COMMUNICATIONS WWW.FUTERRA.CO.UK

14. Building the Index
Brand Value
Planet
Brands
Scale
Sustainability
© 2012 FUTERRA SUSTAINABILITY COMMUNICATIONS WWW.FUTERRA.CO.UK

15. Key Findings I
The Planet Brands Index
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16. The brands that could
change the world
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17. Sectors
© 2012 FUTERRA SUSTAINABILITY COMMUNICATIONS WWW.FUTERRA.CO.UK

18. 100 Planet Brands
Adidas
Bank of
China
China Mobile
Facebook
Heinz
Johnson
Johnson
Movistar
Pepsi
Sony
UPS
Hewlett-
Allianz
Barclays
Cisco
FedEx
Kellogg's
Nescafe
Philips
Sprite
Verizon
Packard
BlackBerry
Standard
Amazon.com
(Research in Citi Group
Ferrari
Honda
KFC
Nestle
Ping An
Visa
Chartered
Motion)
American
BMW
Coca-Cola
Ford
HSBC
Kleenex
Nike
Pizza Hut
Starbucks
Vodafone
Express
Apple
Budweiser
Colgate
Gap
Hyundai
L’Oreal
Nintendo
RBC
Subway
Volkswagen
General Telecom
ATT
Burberry
Corona
IBM
Louis Vuitton
Nissan
Red Bull
Wal-Mart
Electric
Italia
Audi
Canon
Danone
Gillette
ICBC
MasterCard
Nokia
Samsung
Tesco
Wells Fargo
Thomson
Avon
Carrefour
Dell
Google
Intel
McDonald’s
Oracle
SAP
Xerox
Reuters
Mercedes-
AXA
Cartier
Disney
Gucci
Jack Daniel's
Pampers
Siemens
T-Mobile
Yahoo!
Benz
China
Bank of Johnnie
Construction eBay
Heineken
Microsoft
Panasonic
Smirnoff
Toyota
Zara
America
Walker
Bank
© 2012 FUTERRA SUSTAINABILITY COMMUNICATIONS WWW.FUTERRA.CO.UK

19. Key Findings II
The 3 Ps
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20. The 3 Ps of Behavioural
Marketing for Sustainability
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21. © 2012 FUTERRA SUSTAINABILITY COMMUNICATIONS WWW.FUTERRA.CO.UK

22. © 2012 FUTERRA SUSTAINABILITY COMMUNICATIONS WWW.FUTERRA.CO.UK

23. © 2012 FUTERRA SUSTAINABILITY COMMUNICATIONS WWW.FUTERRA.CO.UK

24. © 2012 FUTERRA SUSTAINABILITY COMMUNICATIONS WWW.FUTERRA.CO.UK

25. © 2012 FUTERRA SUSTAINABILITY COMMUNICATIONS WWW.FUTERRA.CO.UK

26. Product
Persuasion
Placement
© 2012 FUTERRA SUSTAINABILITY COMMUNICATIONS WWW.FUTERRA.CO.UK

27. © 2012 FUTERRA SUSTAINABILITY COMMUNICATIONS WWW.FUTERRA.CO.UK

28. Lucy Shea
CEO,
Futerra
lucy@futerra.co.uk
@swishinglucy
www.futerra.co.uk
+1
646
738
8983
© 2012 FUTERRA SUSTAINABILITY COMMUNICATIONS WWW.FUTERRA.CO.UK

29. RESEARCH ROUNDTABLE:
LATEST BUSINESS-TO-BUSINESS INSIGHTS FROM SLM’S TOP RESEARCH PICKS
© 2012 FUTERRA SUSTAINABILITY COMMUNICATIONS WWW.FUTERRA.CO.UK
Katherine
Blue,
KPMG

30. Expect the
Unexpected
Building brand value
in a changing world
Katherine Neal Blue
Managing Director, Climate Change
Sustainability, KPMG LLP
kblue@kpmg.com
4 June 2012
Sustainable Brands Conference 2012

31. Global sustainability megaforces
Awareness and comprehension of each is vital
Climate Change Energy Fuel Material Resource Water Scarcity Population Growth
Scarcity
Wealth Urbanization Food Security Ecosystem Decline Deforestation
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent
firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to
obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to
1
obligate or bind any member firm. All rights reserved.

32. Global sustainability megaforces
Sustainability megaforces are connected – outcomes are unpredictable
Climate s
Businesses need to understand
Change the causes of what affects their
o
o
operations, not just the symptoms.
s
Water o s Food
Security Security
o Brand owners need to understand
s
o
s the sustainability megaforces that
are currently challenging the
s business.
s
s
Human s Ecosystem
Security Security
s
o Opportunities lay in providing new
s
solutions and innovations that
o respond to these sustainability
megaforces.
Energy Forest
Security Security
o
Key: Same direction Opposite direction.
Source: KPMG (2012). Expect the Unexpected: Building business value in a changing world.
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent
firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to
obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to
2
obligate or bind any member firm. All rights reserved.

33. Implications for business
Average external environmental costs 41 US cents per US$ of earnings
800
670
700
600
482
500
US$ in billions
400
300
223
87% 224%
200 153
134 23%
100 89 97 64%
84 71%
100 42% 43%
22 22% 26
52% 59% 2.5%
0
Airlines Automobiles Beverages Chemicals Electricity Food Industrial Marine Mining Oil Gas Telecom
Producers Metals Transportation Producers Internet
2010 EBITDA 2010 Total external environment cost as % of EBITDA
Source: Trucost 2012.
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent
firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to
obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to
3
obligate or bind any member firm. All rights reserved.

34. Implications for business
Automobiles, chemicals and electricity closest to decoupling economic
growth from environmental impact
Environmental intensity
120%
2002-2010 percentage improvement in environmental intensity
100% Industrial Metals
Telecom Marine
Internet Transportation
80%
Oil Gas
Producers
60% Mining
Chemicals Electricity
40% Airlines
Automobiles
20%
Beverages
(40)% (20)% 0% 20% 40% 60% 80% 100% 120% 140% 160%
(20)%
(40)% Food Producers
(60)%
(80)%
2002-2010 growth in environmental costs
Key: Size of circle depicts the sector’s total external environmental costs in 2010 in USD.
Source: Trucost 2012.
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent
firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to
obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to
4
obligate or bind any member firm. All rights reserved.

35. Food Producers
Exposure to global sustainability megaforces
Industry under pressure 2010 external environmental costs US$200
billion, 224% of sector earnings
■ Production projected to increase 70% by 2050
■ 100% increase in developing countries
224%
■ Huge pressure on agricultural production 89
systems
2010 EBITDA 2010 external
environmental
costs
Source: FAO. (2011) The state of the world's land and water resources for food and agriculture.
Highly exposed to
Climate Change Water Scarcity Energy Fuel Population Growth Wealth Ecosystem Decline
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent
firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to
obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to
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obligate or bind any member firm. All rights reserved.

36. Food Producers
Megaforce risks and opportunities
Commodity prices are becoming
increasingly volatile
Climate Change
Risk 400
Food price indices 2002-2004
350
■ Physical risks affect raw materials and 300
supply chains 250
200
■ Exposed to climate change legislation. 150
100
Food production estimated at 30-50% of all
50
man-made emissions(1) 0
Jan-00 Sep-01 May-03 Jan-05 Sep-06 May-08 Jan-10
Opportunity Food Price Index Dairy Price Index Oils Price Index
Meat Price Index Cereals Price Index Sugar Price Index
■ Weather and pest/disease resistant crops
■ Manage carbon emissions of livestock
Source: (1) FAO (2010). Organic agriculture and climate change. Source: Based on Food and Agriculture Organization of the United Nation’s Global Information and Early
Goodland Anhang. (2009) Livestock and climate change. Warning System (FAO/GIEWS) database.
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent
firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to
obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to
6
obligate or bind any member firm. All rights reserved.

37. Food Producers
Megaforce risks and opportunities
Water Scarcity Ecosystem decline
Risk Risk
■ Demand for water in food production ■ Degradation of agricultural soil
increasing
■ Loss of pollinators
■ Changing eating patterns: meat, dairy
more water intensive
■ Livestock accounts for 8% of human water Population Growth
use(1) Wealth
■ Fertilizer leach affects freshwater quality Risk/Opportunity
Opportunity ■ Demand for high value products – also the
■ Increase of reclaimed water use most ecologically sensitive
Source: (1) FAO. (2006) Livestock's long shadow.
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent
firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to
obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to
7
obligate or bind any member firm. All rights reserved.

38. Food Producers
Megaforce risks and opportunities
Energy Fuel
Risk
■ Cost volatility of fuel for transport and
processing
■ Nitrogen fertilizers vulnerable to energy
price fluctuations
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent
firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to
obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to
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obligate or bind any member firm. All rights reserved.

39. Food Producers
Corporate responsibility reporting
Less than half of
Overall reporting smaller companies Below average
rate of 65% report (US$1bn reporting quality
revenue)
70% report on
43% report green water (fewer than
or sustainable beverages,
products automobiles and
chemicals)
Source: KPMG International Survey of Corporate Responsibility Reporting 2011.
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent
firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to
obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to
9
obligate or bind any member firm. All rights reserved.

40. Food Producers
Research, development and policy readiness
Continued investment needed in
Increasing crop yields Improving resource efficiency Waste avoidance
Increase commodity certification to
Increase Invest in new
Attract premium
productivity technologies
Collaborate with policymakers and NGOs
Adapt to climate change
Address food security Educate consumers
impacts
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent
firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to
obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to
10
obligate or bind any member firm. All rights reserved.

41. Beverages
Exposure to global sustainability megaforces
Industry under pressure 2010 external environmental costs US$35.4
billion
■ Strong sector growth – 15% in 2010
42%
■ Combined effects of multiple megaforces sector
EBITDA
■ Challenge to demonstrate resilient supply
chain, acquisition and logistics models
Source: Datamonitor. 2011. Industry Profile: Global Beverages
Highly exposed to
Climate Change Water Scarcity Food Security Population Growth Ecosystem Decline
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent
firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to
obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to
11
obligate or bind any member firm. All rights reserved.

42. Beverages
Megaforce risks and opportunities
Climate Change
Food Security
Risk
■ Declining land productivity and changing weather patterns affect supply of inputs
■ Sugar susceptible to drought
■ Could lead to price volatility
Opportunity
■ Warmer temperatures may increase demand
■ Large scale, long term purchasing contracts in short-medium term
■ Innovative planning, investment and adaptation in long term to stabilize inputs
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent
firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to
obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to
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obligate or bind any member firm. All rights reserved.

43. Beverages
Megaforce risks and opportunities
Global fresh water demand gap projected by 2030
Water Scarcity
7,000 6,900
900
Risk 6,000
1,500 -40%
■ Primary growth regions (Asia, Africa, Latin
Billion cubic meters of water - 154 basins/regions
America) highly exposed 5,000
4,500
■ Increasing competition for water supply with 600 4,500
4,200
communities and other industries 4,000 700
Ground water
800
■ Increasing government interventions 3,500
3,000 Surface
3,100
■
water
Limits on right to extract and use water are likely
Opportunity 2,000
■ Innovation for:
1,000
– water treatment and recycling
– drought resistant input commodities 0
2005 Demand 2030 Demand 2030 Planned Supply
– water efficient processes
■ Supply chain water management Source: Ceres. (2011). The Ceres Aqua Gauge: A framework for 21st century risk management.
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent
firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to
obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to
13
obligate or bind any member firm. All rights reserved.

44. Beverages
Megaforce risks and opportunities
Population Growth
Ecosystem decline
Wealth
Risk Risk
■ Health concerns as populations become ■ Breakdown of water, land and pollinator
more affluent: obesity, diabetes, alcohol systems critical to inputs
■ Health related legislation e.g., beverage
tax
Opportunity
■ Increasing demand for beverages
■ Demand for bottled water increasing in
regions with limited access to safe water,
eg., India
■ Health and wellness orientated products
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent
firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to
obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to
14
obligate or bind any member firm. All rights reserved.

45. Beverages
Corporate responsibility reporting
High global
100% in US
reporting level:
Europe; 62% in
82% vs 65% for
Asia Pacific
Food Producers
High level of Less than 30%
reporting in water report sustainable
(80%) products
Source: KPMG International Survey of Corporate Responsibility Reporting 2011
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent
firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to
obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to
15
obligate or bind any member firm. All rights reserved.

46. Case Study: Desso (Netherlands)
■ Cradle to Cradle® carpets
■ Offices, hotels, cruise ships
■ Building brand on Cradle to Cradle®
commitment
■ Positively designed
■ All products 100% recyclable or compostable by
2020
■ Take-back system
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent
firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to
obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to
16
obligate or bind any member firm. All rights reserved.

47. Case Study: Elvis Kresse (UK)
■ Luxury brand: disruptive innovation within
traditional market
■ Created from upcycled waste
■ Waste is the basis for product development
(e.g., coffee sacks into laptop/e-reader covers)
■ Firehose waste sourced from UK and France
■ Social giving: % of profits to fire-fighter charity
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent
firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to
obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to
17
obligate or bind any member firm. All rights reserved.

48. Case Study: Kingfisher (UK)
■ Europe’s leading home improvement retailer
and world’s 3rd third largest
■ Global sustainability megaforces now driving
new brand direction
■ March 2012: CEO committed to ‘put back more
than we take out’ over next decade
■ Corporate brand commitment being driven
through products eg. ‘Clean Spirit’
■ New sustainability brand: ‘Net Positive’
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent
firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to
obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to
18
obligate or bind any member firm. All rights reserved.

49. Global sustainability megaforces and brand impact
What this means for the C-Level and Brand Teams
What will your brand look like in 2020, in this changing world? How will
megaforces interact with your brand strategy?
Opportunities:
■ new markets and new customers
■ influence customer behavior
■ strengthen corporate brand (as well as product brand)
■ innovate products and services
■ boost the bottom line by connecting sustainability with the brand
■ connect sustainability and brand teams more closely
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent
firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to
obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to
19
obligate or bind any member firm. All rights reserved.

50. Conclusion: Building brand value in a changing world
Sustainability megaforces + brands = opportunity
■ Strengthen the brand relationship with consumers
■ Provide insight into changing consumer needs
■ Drive innovation: relevant and profitable solutions
■ Carve competitive advantage/sector leadership
Business challenge is to model, systemically these complex megatrends
to develop a meaningful and exact forward strategy – to enhance and preserve
brands, maximize opportunity and minimize risk.
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent
firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to
obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to
20
obligate or bind any member firm. All rights reserved.

51. Contact information
Katherine Neal Blue
Managing Director
U.S. Climate Change Sustainability
KPMG LLP
303 Peachtree St, Suite 2000,
Atlanta, GA 30308-3210
kblue@kpmg.com
Direct: 404.222.7606
Cell: 404.312.4511
efax: 404.759.2365
© 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent
firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to
obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to
21
obligate or bind any member firm. All rights reserved.

52. © 2012 KPMG International Cooperative (“KPMG International”), a Swiss entity.
Member firms of the KPMG network of independent firms are affiliated with
KPMG International. KPMG International provides no client services. No
member firm has any authority to obligate or bind KPMG International or any
other member firm third parties, nor does KPMG International have any such
authority to obligate or bind any member firm. All rights reserved
The KPMG name, logo and “cutting through complexity” are registered
trademarks or trademarks of KPMG International.
The information contained herein is of a general nature and is not intended to
address the circumstances of any particular individual or entity. Although we
endeavor to provide accurate and timely information, there can be no guarantee
that such information is accurate as of the date it is received or that it will
continue to be accurate in the future. No one should act on such information
without appropriate professional advice after a thorough examination of the
particular situation.
The KPMG name, logo and “cutting through complexity” are registered
trademarks or trademarks of KPMG International.