Sustainability

CRY CR Summit, Mumbai, 12 December 2013

TOMORROW’S BOTTOM LINE Corporate Responsibility, Shared Value and Sustainability

0 WHAT’S A MASTERCLASS?

Some ingredients of masterclass • Key topic: CR and Child Rights • Taught by leading practitioners: Srimathi Shivashankar, HCL • Excellent students • Real-world cases • No holds/questions barred

• CSR strategy, building brands … evolving partnerships, digital media

What’s the message? • This is the future • CSR, Shared Value and Sustainability all important—but not the same

• CSR started out as voluntary, but becoming less so—with legislation and growing market demands • Child rights agenda a touchstone • Not just about negatives (e.g. child labour) but also about positives (e.g. education)

2 WHAT’S MY ANGLE?

40 years in field • Entrepreneur: Environmental Data Services (ENDS) 1978, SustainAbility 1987, Volans 2008 • Clients: e.g. Allianz, Bayer, C&A, HP, Interface, Natura, Nestlé, Nike, Tesco …

• Boards: 20+ Boards/Advisory Boards (e.g. B Team, Biomimicry 3.8 Institute, F&C/Friends Life Group, Nestlé, Kering/PPR, WWF Council of Ambassadors) • Visiting Professor: Cranfield School of Management; Imperial College London; University College London

2 WHAT’S C(S)R?

What do we mean by corporate responsibility? • BSR: “A sustainable business is one that delivers value for investors, customers, and employees; improves the living standards of its employees and the communities it touches; makes wise use of natural resources; and treats people fairly.” • WBCSD: “The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.” • EU: "A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis."

CR priorities GlobeScan/BSR

Difficulty vs. importance GlobeScan/SustainAbility

How business best serves GlobeScan/BSR

3 WHERE ARE WE?

Societal Pressure Waves: Wave 5 (2015-2020 )

Security: Water-Energy-Food-Finance Nexus

José Ángel Gurría

Shared Value: Is win-win enough?

• Sustainability not same as ‘CSR’, or ‘CSV’ • 78% of 1600 experts: system must change for significant progress towards sustainability • Intergenerational task of winding down obsolete economic and business models—and creating new ones fit for C21

4 WHY IS BUSINESS SO IMPORTANT?

Lack of political will is identified as the most significant barrier to progress on SD. Vested interests and related factors are also important Global Expert Opinion

Lack of political will is, by far, the biggest barrier to progress on Agenda 21. Vested interests in the status quo and related factors such as misdirected financial incentives and lack of private sector action are also seen as important. Experts acknowledge that complexity is an issue but not when it comes to having adequate knowledge or technologies. The corporate sector is more inclined than others to blame the poor economy.

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Case: Unilever

Case: The B Team

5 WHERE TO START?

Where to start? 1. Ensure you have top team support 2. Find out what already done 3. How do key industry bodies see agenda? 4. What are your leading customers thinking? 5. What are other corporate change agents doing? 6. Engage internal & external stakeholders in materiality review 7. Monitor/measure, report, benchmark 8. Integrate into mainstream processes as soon as possible

Case: OECD CSR policy tool (3Ps)

Materiality and the business case

Co-evolve a roadmap

6 THE KEY ISSUES?

Breakthrough: Casualties

Personal genetic testing

Case: EcoVadis

WBCSD’s Vision 2050

7 AM I A SOCIAL INTRAPRENEUR?

What’s a Social Intrapreneur?

What is a Social Intrapreneur?

Impact and Value

8 WHERE’S THE LEADING EDGE?

Integrated Reporting: ‘6-D’ Capitalism

Aiming for Zero: Interface

9 CAN WE BREAK THROUGH?

Breakthrough: System change