www.corp2020.com  @corp2020           TBLI Conference Europe 2012,             Zurich, 8th November 2012            Corpor...
www.corp2020.com  @corp2020
www.corp2020.com  @corp2020                                                      …20111989…                   “A Green Eco...
www.corp2020.com  @corp2020              Source : T-21 Model, Green Economy Report,              2% of GDP invested in Gre...
www.corp2020.com    @corp2020Is “Green Economy” possible without the Private Sector?                                      ...
www.corp2020.com  @corp2020Private Sector Today : “Corporation 1920”• Four Defining Behaviours   – Pursuit of Size   – Act...
www.corp2020.com  @corp2020                   Big Is Beautiful ?
www.corp2020.com  @corp2020                   Big Is Beautiful ?
www.corp2020.comwww.corp2020.com  @corp2020   @corp2020         The Success of World Trade ?
www.corp2020.com  @corp2020             Corporation 1920• Four Defining Behaviours   – Pursuit of Size   – Active Lobbying...
www.corp2020.com  @corp2020        Why do we need to change?• Negative externalities of top 3,000 companies  estimated at ...
www.corp2020.com  @corp2020        Why do we need to change?• We are approaching or have exceeded several  “planetary boun...
www.corp2020.com  @corp2020                 What will drive change? Macro Issue            Micro Driver          Micro Sol...
www.corp2020.com   @corp2020     “Corp2020” : Micro-Policy Reforms to    Make Business Deliver a Green Economy       Limit...
www.corp2020.com  @corp2020           http://sharequotes.us/robson-walton-biography.html                                  ...
See Interview with Rob Walton onwww.corp2020.com            www.corp2020.com   @corp2020               Limiting Leverage  ...
www.corp2020.com  @corp2020               Limiting Leverage• Tools for limiting leverage:  – Capital adequacy ratios for “...
www.corp2020.com  @corp2020             Accountable Advertising• Two principles   – Treat all consumers equally, irrespect...
www.corp2020.com  @corp2020                   Jochen Zeitz                   Chairman, Puma
See Interview with Jochen Zeitz onwww.corp2020.com            www.corp2020.com   @corp2020     Accounting for Externalitie...
www.corp2020.com  @corp2020Disclosing Externalities : PUMA PUMA Press Release, November2011
www.corp2020.comwww.corp2020.com  @corp2020   @corp2020Disclosing Externalities : Infosys
www.corp2020.com  @corp2020  What will define a “Corporation 2020”?• Four Characteristics   –Goal Alignment with Society  ...
www.corp2020.com  @corp2020        Corporation as “Institute” : Infosys                   World-class Training for 30,000 ...
www.corp2020.com  @corp2020   Corporation as “Community”: Google            http://www.joe-            ks.com/archives_feb...
www.corp2020.com  @corp2020          Corporation as “Community” : Natura                   Greater Economic Security for W...
www.corp2020.com the Four Implementing   @corp2020 of Change    Planks     Planks     Disclosing             Resource   Ac...
6th Nov 2012, ‘Externalities’  www.corp2020.complank launched in Singapore     @corp2020                                  ...
Who will launch the otherwww.corp2020.comThree Planks of Change?  @corp2020     Planks     Disclosing             Resource...
www.corp2020.com  @corp2020 Thank You ! www.corp2020.com    Pavan Sukhdev Founder, Corporation 2020& UNEP Goodwill Ambassa...
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Corporation 2020: Transforming Business for Tomorrow's World

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TBLI CONFERENCE™ EUROPE 2012 - Zurich - Switzerland

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  • There are four basic qualities that I believe will be salient in the corporation of the future. They are Institute, Goal Alignment, Capital Factory, and Community. I will take each one in turn to explain what I mean by each of these terms.
  • We need to take the word “sustainability” seriouslyExternalities of top 3000 companies at US$2.15 trillionWe are losing an estimated 6% of global GDP every year due to the private sector’s environmental externalitiesHowever, there are also massive positive externalities that some companies are creating, for which they get no creditLeadership won’t take us all the wayEven good leaders have to work within a system that places short-term financial returns above all.BP as an example --- completely legalCaused US$34 to $670 billion in environmental damages
  • Accounting for externalitiesNew taxation structuresRemove US$650b in annual subsidies for fossil fuelsTax the bads, not the goodsLimited leverageAccountable advertising
  • There are four basic qualities that I believe will be salient in the corporation of the future. They are Institute, Goal Alignment, Capital Factory, and Community. I will take each one in turn to explain what I mean by each of these terms.
  • Corporation 2020: Transforming Business for Tomorrow's World

    1. 1. www.corp2020.com @corp2020 TBLI Conference Europe 2012, Zurich, 8th November 2012 Corporation 2020Transforming Business for Tomorrow’s World Pavan Sukhdev Founder, Corporation 2020 & UNEP Goodwill Ambassador
    2. 2. www.corp2020.com @corp2020
    3. 3. www.corp2020.com @corp2020 …20111989… “A Green Economy is defined as one that results in improved human well-being and social equity, whilst significantly reducing environmental risks and ecological scarcities.” Source: Towards a Green Economy, UNEP, 2011
    4. 4. www.corp2020.com @corp2020 Source : T-21 Model, Green Economy Report, 2% of GDP invested in Greening vs 2% more in BAU
    5. 5. www.corp2020.com @corp2020Is “Green Economy” possible without the Private Sector? (example: USA) U.S. Gross Value Added, By Sector 7.1% 5.5% Private Business 12.5% Households 74.9% Nonprofit institutions serving households Government Total = GDP (US$14,526.5 billion) U.S. Nonfarm Employees 16.7% Private 83.3% Government
    6. 6. www.corp2020.com @corp2020Private Sector Today : “Corporation 1920”• Four Defining Behaviours – Pursuit of Size – Active Lobbying – Unethical Advertising – Unlimited Leverage
    7. 7. www.corp2020.com @corp2020 Big Is Beautiful ?
    8. 8. www.corp2020.com @corp2020 Big Is Beautiful ?
    9. 9. www.corp2020.comwww.corp2020.com @corp2020 @corp2020 The Success of World Trade ?
    10. 10. www.corp2020.com @corp2020 Corporation 1920• Four Defining Behaviours – Pursuit of Size – Active Lobbying – Unethical Advertising – Unlimited LeverageResulting in Negative Externalities…..
    11. 11. www.corp2020.com @corp2020 Why do we need to change?• Negative externalities of top 3,000 companies estimated at US$2.15 trillion per annum Source: Trucost for UNPRI, 2010.
    12. 12. www.corp2020.com @corp2020 Why do we need to change?• We are approaching or have exceeded several “planetary boundaries”
    13. 13. www.corp2020.com @corp2020 What will drive change? Macro Issue Micro Driver Micro Solution Culture of Ethics & Consumerism Excessive Demand Accountability in Fuelled by Advertising Marketing/ Advtg LimitUnderpriced Supply Unlimited leverage Leverage/capital adequacy/etc. Underpriced Resource Taxes resourcesResource Depletion replace corporate (Low royalties / taxes perverse subsidies) Measure & DisclosePublic Capital Losses Externalized costs Externalities
    14. 14. www.corp2020.com @corp2020 “Corp2020” : Micro-Policy Reforms to Make Business Deliver a Green Economy Limiting Leverage : Introducing rules & limits to govern financial leverage Accountable Advertising : Making advertising responsible & accountable via norms & standards Resource Taxation : Replacing Income Tax with Resource Tax for Resource Use & Extraction Disclosing Externalities : Measuring & disclosing all major corporate externalities (+ve & -ve)From : www.corp2020.com Source: Why Corporation 2020?, Island Press, 2012
    15. 15. www.corp2020.com @corp2020 http://sharequotes.us/robson-walton-biography.html Rob Walton Chairman, Walmart
    16. 16. See Interview with Rob Walton onwww.corp2020.com www.corp2020.com @corp2020 Limiting Leverage …to see why Wal-mart went public…
    17. 17. www.corp2020.com @corp2020 Limiting Leverage• Tools for limiting leverage: – Capital adequacy ratios for “TBTF” corporations – Consortium banking (info sharing between banks) – Segregate lending/clearing institutions from investment/ insurance (re-visit Glass-Steagall?) – Limit tax-deductibility of interest beyond caps – Constrain leverage from M&As – Re-align performance bonus systems
    18. 18. www.corp2020.com @corp2020 Accountable Advertising• Two principles – Treat all consumers equally, irrespective of market – Improved disclosure of advertising practices • Annual “Accountable Advertising Report”• Four strategies – Disclose life span of product on packaging and in ads – Disclose countries of origin – Recommend how to dispose of product – Voluntarily commit 10% of ad spend in developing countries to local sustainability projects
    19. 19. www.corp2020.com @corp2020 Jochen Zeitz Chairman, Puma
    20. 20. See Interview with Jochen Zeitz onwww.corp2020.com www.corp2020.com @corp2020 Accounting for Externalities …to see why PUMA disclosed its Externalities…
    21. 21. www.corp2020.com @corp2020Disclosing Externalities : PUMA PUMA Press Release, November2011
    22. 22. www.corp2020.comwww.corp2020.com @corp2020 @corp2020Disclosing Externalities : Infosys
    23. 23. www.corp2020.com @corp2020 What will define a “Corporation 2020”?• Four Characteristics –Goal Alignment with Society –Capital Factory –Institute –Community
    24. 24. www.corp2020.com @corp2020 Corporation as “Institute” : Infosys World-class Training for 30,000 p.a.
    25. 25. www.corp2020.com @corp2020 Corporation as “Community”: Google http://www.joe- ks.com/archives_feb2009/GoogleHeadquarters.htm
    26. 26. www.corp2020.com @corp2020 Corporation as “Community” : Natura Greater Economic Security for Women Median Salary 16 times more than national minimum Network of 1.4 million independent sales representatives Training women to offset lack of department stores and offer good job opportunities in Brazil
    27. 27. www.corp2020.com the Four Implementing @corp2020 of Change Planks Planks Disclosing Resource Accountable LimitedStages Externalities Taxation Advertising LeverageResearch &Ideation GRI, IIRCOutreach GRI, IIRC,& Advocacy WBCSD, AFS, B4EInstitutionalChampionshipImplement- -ation(Funding & UK (Defra)Proj. Mngmt.) SING (EDB)
    28. 28. 6th Nov 2012, ‘Externalities’ www.corp2020.complank launched in Singapore @corp2020 TEEB for Business Coalition • Incorporated as a company limited by guarantee* • Incorporated in Singapore Board Advisory Group • Jochen Zeitz (Puma) • Michael Izza (ICAEW) (Company) • Juan Costa-Climent (E&Y) Board • Herman Mulder (GRI) • Peter Bakker (WBCSD) • Fernando Rodes (Havas) • Pavan Sukhdev (GIST Advisory) (Chair) Founder Member Reps - Observer Reps – organisations Ordinary Member Reps – Co-opted board members: Members of the company – for whom legal ownership is ordinary members of the 1. Pavan Sukhdev, Study Leader known as Founder Members - complicated but who have been Coalition elect five board TEEB and therefore its legal instrumental partners are offered members for a three year period 2. Gerard Ee (Chair) (Member of owners, all have permanent a permanent board seat as Parliament, Singapore) board seats: observers: 3. Sanjeev Sanyal (Senior Economist 1. ICAEW • CBD Deutsche Bank Singapore) 2. WBCSD • UNEP 3. GRI • World Bank/IFC 4. WWF • Accounting for 5. CI Sustainability 6. IUCN • UK Government (Defra) * A company limited by guarantee is a structure that means 7. IIRC • Others? European there are no shares in the company; its members are guarantors 8. Global Initiatives Commission; Singapore rather than shareholders. There is therefore no need for share Economic Development transfers as members join or leave the company. Board; other donor gov’ts
    29. 29. Who will launch the otherwww.corp2020.comThree Planks of Change? @corp2020 Planks Disclosing Resource Accountable LimitedStages Externalities Taxation Advertising LeverageResearch &Ideation GRI, IIRCOutreach GRI, IIRC,& Advocacy WBCSD, ? ? ? AFS, B4EInstitutionalChampionship ? ? ?Implement- -ation ? ? ?(Funding & UK (Defra)Proj. Mngmt.) SING (EDB)
    30. 30. www.corp2020.com @corp2020 Thank You ! www.corp2020.com Pavan Sukhdev Founder, Corporation 2020& UNEP Goodwill Ambassador

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