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142 engaging business for conservation presentations
Transcript of 142 engaging business for conservation presentations
1
Engaging Business for ConservationConservation
Conservation Campus #142
11 September 2012
Objective
• Exchange experience on developing a strategy for business engagement
• Provide practical examples of how business and conservation communities are engaging to deliver conservation outcomes
• Explain how to develop partnerships that areExplain how to develop partnerships that are mutually beneficial and enhance brand value of both organizations
• How to communicate and train business on ecosystems
Agenda
1. Welcome and introduction
2. Risk and Opportunities of engaging business
3. Business Engagement in practiceg g p
4. Create sustainable brand value for business
5. Training business on ecosystems
Engaging Business for Conservation: Risks and Co se at o s s a d
Opportunities
Gerard Bos, Head – Global Business and Biodiversity Programme, IUCN
September 2012
Overview
• Matching conservation and business goals
• Developing a strategy for business engagementg g
• Selecting a business partner
• Formalizing the engagement
Figure 1 – Steps in IUCN Operational Guidelines for Private Sector Engagement
Matching goals
Key factors for success:
Understanding your added value • Organizational assets
• Value Proposition
• What you can do
Understanding the business
• Business impacts and dependencies
• Opportunities for business in conservation
• What the business can do
Identify shared and added value
2
Developing a strategy
Why a Strategy?
How to develop a pStrategy?
How to use a Strategy?
Developing a strategy
Why a Strategy? To ensure that engagements are a means to a wider conservation goal. To protect your reputation. To ensure effective use of (generally scarce) resources.
How to develop a Strategy? It depends on your type of organization: If membership-based, you will need to engage in consultations with your members Even ifengage in consultations with your members. Even if not, involve those who will work with business as well as business entities. Ensure that the Strategy is in line, builds on and supports your main conservation programme.
How to use a Strategy? It should be your compassin selecting projects and partners. Not a replacement for detailed project concepts or workplans.
IUCN Strategy• IUCN’s first strategy was issued in 2004
• The IUCN Council requested a new Strategy in 2011
• A first concept was developed with members of the Council and used to request input from IUCN Members, Councillors and partners (mostly businesses)
With the input received a small design team drafted• With the input received, a small design team drafted version 1 which was subsequently revised by the Council and discussed during a workshop
• The final Strategy was approved by Council in April 2012
• The strategy builds on IUCN quadrennial programme as well as on past experiences working with business
Key elements of a strategy
Clear aims, objectivesThe IUCN Business Engagement strategy aims to encourage transformational and demonstrable changes at the company and sectoral level in how biodiversity is valued and managed by businesses in order to conserve and restore biodiversity and to ensure that biodiversity benefits are shared equitably.
Purpose:Purpose:To provide IUCN with a coherent framework for influencing the business sector, a clear reference point as to the level of ambition expected from the business engagements, and a consistent approach to the management of reputational risks and quality assurance.
Key elements of a strategy
Well defined theory of changeIUCN’s BES has three interconnected entry-points, all linked to one central objective: business practices at the landscape and seascape level are transformed to generate benefits for biodiversity and natural resource-dependent livelihoods.
Entry Point 1: Triggering changes on the ground
Entry Point 2: Leveraging supply chains
Entry Point 3: Influencing public & financial policies
Key elements of a strategyClear implementation strategy• Engage with a few selected
leaders in priority sectors to develop or adapt, field test and pilot tools and approaches.
• Building on best practices, work with a group of companies within selected sectors and industry associations to develop, adopt and promote voluntary standards.
• Directly engage with public policy and the financial sector to promote a progressive and level playing field in terms of regulations and finance.
3
Selecting a business partner
• Developing an engagement concept (what are the conservation challenges that can beaddressed through an engagement withbusiness?)
• Assessing potential business partnerso Is the company well placed to help deliver the
concept? Are they committed to a step change?
o Are there shared goals and opportunities to add value?
• Performing a due diligence to identify possible sources of risk & opportunities
• Preparing a risk management strategy
Which company should we work with?
Due Diligence• A step to enable “informed decisions” on how to
progress discussions with business
• Allows a better understanding of the business and its operations
• Identifies any past, present, and predictable future sources of risk to the organization arising from an engagement with the business
• Helps identify opportunities of engaging and potential areas of joint work
What should be included?
1. Scope
2. Company description
3. Company impact on biodiversity and ecosystem services
4. Social and environmental policies, standards and public commitments
5. Environmental and social performance
6. Company reputation
7. Initial assessment of the company’s commitment to corporate responsibility
8. Overview of potential risks
9. Indications of points that could be further investigated
Risk and Opportunity Matrix
The position of the red dot will move on answering the questions according to the risk and opportunities of engaging a given companyResults in the tables above are
generated by answering the risk and opportunity questions
Formalizing the engagement
• Develop a project concept which includes:• Aim and objectives
• Key areas of cooperation
• Expected outcomes and how they will contribute to your conservation goals
• Formalize the engagement through an i t h i ( M d fappropriate mechanism (e.g. Memorandum of
Understanding, Contract, Agreement, etc.)
• Ensure transparent and regular communication with your constituency during entire process
How do we formalize
our engagement?
A good contract includes…
• SMART (Specific, Measurable, Achievable, Realistic and Time-bound) results
• Roles and responsibilities for realizing results• Capacity and resource requirements on both
sides• Indicators for monitoring and measuring
performance progress and resultsperformance, progress and results• A clause that allows public communication
regarding any issues which may or may not involve the business entity
• A process for addressing breach of contract• A termination clause• A mechanism for raising grievances from third
parties• An independent final evaluation
4
Top Tips• Be transparent• Work with the business from the beginning and
throughout the project (don’t treat them like donors!)
• Conduct a situation analysis – what are the impacts and dependencies? Assess the “additionality”?additionality ?
• Assess and manage your risks• Aim at establishing true partnerships – ensure
that there are mutual benefits from working together
• Celebrate success• Communicate throughout
Resources for more information
IUCN Business engagement Strategy
http://data.iucn.org/dbtw-wpd/edocs/Rep-2012-001.pdf
Operational Guidelines for Private Sector EngagementEngagement
http://cmsdata.iucn.org/downloads/ps_20guidelines.pdf
Global Business and Biodiversity Programme
http://www.iucn.org/business
Thank you!Kamsa hamnida!
www.iucn.org/congress
감사합니다
1
Tuesday 11 September 2012
ECOLABORATION™Review 2012 -outlook 2013
To cover today
• Strategic rationale for Ecolaboration™
• AAA: our unique approach to sourcing
high quality coffee and cocoa
P2
high quality coffee and cocoa
• Club member engagement and
stakeholder management
• Outlook 2013 and beyond
Ecolaboration™: Strategic rationale
• Integrating Nestle CSV approach into the Nespresso model
• Securing access to and smart use of
P3
Securing access to and smart use of resources
• Adding value to the Nespresso brand
Ecolaboration™: part of the Nestle CSV
“Nespresso’s innovative program is not driven by charity but by creating value”
Michael Porter
Professor of Business Strategy
Harvard Business school
P4
Michael Porter at the Third Nespresso AAA Sustainable Quality™ Forum
“A good example of such new procurement thinking can be found at
Nespresso, one of Nestlé’s fastest growing divisions”
Ecolaboration™: securing access to and smart use of resources
-16% Vs 2013 commitment
of -20%
61% Vs 2013 commitment
of 80%
P5
74% Vs 2013 commitment
of 75%
Securing reputation
Ecolaboration™: adding value to the Nespresso brand
Using Ecolaboration™ to protect the company reputation among key opinion leaders activists
P6
Building
trust
leaders, activists and media
Using Ecolaboration™ to convince club members and prospects
2
To cover today
• Strategic rationale for Ecolaboration™
• AAA: our unique approach to sourcing high quality coffee and cocoa
P7
• Club member engagement and stakeholder management
• Outlook 2013 and beyond
1. Long term supply of quality
2. The sustainability challenge
There are 3 main challenges in the specialty coffee sector…
… facing Nespresso in particular
P8
3. Profitability of smallholders
The AAA Sustainable Quality™ Program responds to these challenges
… in a pragmatic way,
with the farmers at the center
P9
The AAA Program: a pragmatic approach to sustainable quality
P10
The AAA Program: a pragmatic approach to sustainable quality
P11
The AAA Program: a pragmatic approach to sustainable quality
P12
3
In ten years the program has expanded to 50’000 farmers in 7 countries
Mexico1 cluster2’176 farms
Nicaragua2 l t
50’000 farms
7 countries
20 clusters
Today(Q2 2012)
50’000 S-A
3’500 Tasq
190 agronomists
200’000 Hectares
P13
Ethiopia1 cluster (forming)2’200 farms
2 176 farms
Guatemala2 clusters1’344 farms
Costa Rica4 clusters3’361 farms
Colombia4 clusters37’994 farms
Brazil6 clusters1’798 farms
India2 clusters64 farms
2 clusters94 farms
70’000 farmsEnd 2013
70’000 S-A
7’000 Tasq
250 agronomists
On cocoa, the program started in 2009 with the objective of all clusters AAA in 2013
Indonesia by end 2012
“Grands Crus only”
Tanzania ( 2013)
“Grands Crus / Variations”
•Sensory : Round and mild cocoa
•Coops of smallholders TBD
•36 t /year
•Trade partner : TBD
P14
Brazil –Bahia since 2009“Grands Crus only”
• Sensory : Strong cocoa and bitter, with a complex dried fruit and refreshing herbal aromatics• 1 plantation 400 ha• 12t /year• Performance RA: DEFICIENT(68% TASQ incl.5 critical criteria) => certification level by 2015• Trade partner : EFICO
Madagascar since 2011“Grands Crus / Variation”• Sensory : Strong acidity, balanced between cocoa and fruity (lemony)• 4 coops => 120 s/h• 9t /year• Performance RA : Deficient (25% TASQ performance incl.7 critical criteria )Trade partner : TOUTON
Grands Crus only
•Sensory : Strong cocoa and bitter with gingerbread aromatics
•1 plantation 1’400 ha
•12t /year
• Trade partner : Armajaro
In 2012, Nespresso will source 66% of its coffee from AAA and 18% AAA RA
Brazil35%
Central America21%
Africa10%
Mexico3%
India3%
A large disparity between Colombia and other countries
P15
Colombia28%
Coffee Volume distribution
Number of AAA Farms
Results: Quality up and rejection down
P16
Results: high rate of farmer satisfaction
Colombian grower satisfaction with sustainability initiatives (% satisfied)
% of coffee sold to Nespresso,among AAA growers
P17
Percent AAA farmers who return sell their coffee to Nespresso
Nespresso Corporate web site
Results: progress on sustainable agriculture
% farms complying with specific environmental practices
P18
Environmental performance of AAA farms vs. non AAA (out of 100)
4
Results: supporting innovation pipeline
P19
Results: supporting innovation pipeline
P20
To cover today
• Strategic rationale for Ecolaboration™
• AAA: our unique approach to sourcing high quality coffee and cocoa
P21
• Stakeholder management and Club member engagement
• Outlook 2013 and beyond
We are progressively building credibility with stakeholders
P22AAA farmers awarded at the RA gala
The Alucycle™ commitment is building Nespresso credibility on sustainability
P23
AAA commitment secured reputation during the Solidar attack
P24
5
We are progressively building club member awareness
Recycling initiative 79% +50pts
Awareness 2009 vs. 2011
29%
P25
AAA program
Ecolaboration™
+29pts
35% +26pts
42%13%
9%
CM awareness of Ecolaboration™ initiatives drive expertise perception and Net Promoter Score
Total Current
Members
Aware of the Ecolaboration
programm
Yes and I know
exactly what it is
Base 13299 4277 961
ST NPS score 54% 62% 64%
P26
7 9% 7% 8%
8 19% 17% 14%
9 22% 22% 21%
You would certainly recommend Nespresso 41% 46% 51%
TO COVER TODAY
• Strategic rationale for Ecolaboration™
• AAA: our unique approach to sourcing high quality coffee and cocoa
P27
• Stakeholder management and Club member engagement
• Outlook 2013 and beyond
Outlook
• 2013 focus on AAA 10th anniversary to further build reputation and trust
• Achievement of Ecolaboration target
P28
• Achievement of Ecolaboration target for carbon
• Definition of next phase strategy
Media Trip field
HBRAcademic Symposium
June
NMag
July
Fifth AAA Forum
Sep
Santander
Using AAA 10th anniversary to engage stakeholders
TEN YEARS OF NESPRESSO AAA
Dec
NMagMBA challenge
Securing
reputation
P29
March
Farmers in Europe
July
Photo exhibition
Dec
Book
TEN YEARS OF NESPRESSO AAA
Social media campaign
reputation
Building
trust
Social media campaign
1
RAINFORESTALLIANCEConserving Carbon, Engaging
Businesses for Positive Climate Impacts in Forestry and Agriculture
RAINFORESTALLIANCEConserving Carbon, Engaging
Businesses for Positive Climate Impacts in Forestry and Agriculture
©2009 Rainforest Alliance
Impacts in Forestry and Agriculture
IUCN World Conservation Congress 2012 Conservation Campus 142
Jeffrey Hayward, [email protected] Program Director
September 11, 2012, Jeju, Korea
Impacts in Forestry and Agriculture
IUCN World Conservation Congress 2012 Conservation Campus 142
Jeffrey Hayward, [email protected] Program Director
September 11, 2012, Jeju, Korea©2009 Rainforest Alliance
©2009 Rainforest Alliance
VALUE CHAIN APPROACH
Auditing / certification / verification Ch i f t d Marketing support
Capacity Building
&
Technical Assistance
Certification
&
Sustainability Standards
Market development
&
Corporate engagement
Training and support for producers
verification Chain of custody -traceability
Corporate engagement
Marketing support and brand awareness
producers / processors buyers / exporters / importers distributors / brands / retailers / industry groups consumers
LAND USE PRACTICES BUSINESS PRACTICES CONSUMER BEHAVIOR
BUSINESS COLLABORATIONS
Incentivize agricultural
adaptation and
7
pmitigation
2
Promote sustainable
forest
8
forest management
Support credible carbon
9
markets
BUILDING CAPACITY TO ENABLE REDD+
Strengthen international
10
REDD+ framework
WHAT CAN NGOS BRING TO
BUSINESSES COMMITTED TO
CLIMATE CHANGE ACTION WITHIN
11
CLIMATE CHANGE ACTION WITHIN
THEIR SUPPLY CHAINS?
NGO INFLECTION POINTS
POLICYPOLICYCOMMUNICATECOMMUNICATE
12
ASSESSMENTASSESSMENT
IMPLEMENTIMPLEMENT
VERIFYVERIFY
BUILDING COMPANY CLIMATE POLICIES
• Map out a climate policy
• Identify climate risks in supply chain
POLICYPOLICYCOMMUNICATECOMMUNICATE
• Recommend emission reductions targets
• Advocate for quality carbon offsets
13
ASSESSASSESS
IMPLEMENTIMPLEMENT
VERIFYVERIFY
3
ASSESSING BASELINE CONDITIONS
• Life Cycle Assessment
• Carbon Footprinting
ASSESSASSESSPOLICYPOLICY
• Needs for technical assistance
• Feasibility of mitigation/adaptation
14
IMPLEMENTIMPLEMENT
VERIFYVERIFY
COMMUNICATECOMMUNICATE
IMPLEMENTING ACTIONS
• Technical assistance
• Promote best practice
IMPLEMENTIMPLEMENTASSESSASSESS
• Carbon project development
• Link investors to projects
15
VERIFYVERIFY
COMMUNICATECOMMUNICATE
POLICYPOLICY
VERIFY, MONITOR, REPORT
• Monitor and evaluate progress
VERIFYVERIFYIMPLEMENTIMPLEMENT
• Impact and research
• Ensure conformance to verification
16
COMMUNICATECOMMUNICATE
POLICYPOLICY
ASSESSASSESS
VERIFY, MONITOR, REPORT
• Press and social media
COMMUNI‐CATECOMMUNI‐CATEVERIFYVERIFY
• Publications
• International networks
17
POLICYPOLICY
ASSESSASSESS
IMPLEMENTIMPLEMENT
The Rainforest Alliance works to conserve biodiversity and ensure sustainable livelihoodsby transforming land-use practices, business practices and consumer behavior.
The Rainforest Alliance works to conserve biodiversity and ensure sustainable livelihoodsby transforming land-use practices, business practices and consumer behavior.
1
Scientific Rigour vs. Practicality
Conservation Campus 142, WCC, Jeju
11 Sep 2012
Christoph Imboden
Grey area…
Rigour
● harsh, but just
● severe or cruel circum‐stance
● strictness in judgment or conduct
● Mathematics, Philosophy,
Practicality
● usefulness ‐ the quality of being of practical use
● functionality ‐ capable of serving a purpose well
● viability ‐ capable of being done in a practical
ChI / Slide 2WCC, Jeju, Sep 2012
, p y,Logic: logical validity; accuracy
Robustness
● the characteristic of being strong enough to withstand intellectual challenge
way
● sensibleness ‐ the quality of showing good sense or practical judgment
● realism, pragmatism ‐the attribute of accepting the facts of life
The law of the diminishing return
Scientific accuracy
100%
80%
ChI / Slide 3WCC, Jeju, Sep 2012
Time invested
60%
40%
20%
Engaging with business on biodiversity
1. Convince that biodiversity has something to do with them
2. Motivate them that they should do something
– not how much harm they cause, but…
– what they can positively do for biodiversity
ChI / Slide 4WCC, Jeju, Sep 2012
3. Steer them towards “quick wins”
4. Show the benefits of a systematic and integrated approach
5. Demonstrate that implementation is affordable and that simple methods can lead to meaningful outcomes
6. Team up with them to scale up: influencing industry standards and regulatory meachanisms
Biodiversity Management System ‐ BMS
Biodiversity Policy Principles
Planning cyclePlanning cycle Operational cycleOperational cycle
OpportunityImpact
Biodiversity Action:
ChI / Slide 5WCC, Jeju, Sep 2012
Opportunity Study Feasibility
Study
StudyBiodiversity Action:
EMP, BAP, Rehabilitation
Biodiversity Inventories Biodiversity Monitoring
What are the biodiversity risks?
How can we avoid them?
How can we seize bio-diversity opportunities?
Biodiversity inventories
List of all vertebrates & higher plants
List of all vertebrates & higher plants throughout all seasons
Abundance of vertebrates & higher plants
Research scientists
Conservation scientists
ChI / Slide 6WCC, Jeju, Sep 2012
Conservationpragmatist
Presence of threatened species
List of sp. characteristic for habitats
List of all vertebrates & higher plants
Habitat maps
Few sites All sites
scientists
Company
2
Holcim boundary conditions
● 520 sites ‐ worldwide distribution (>70 countries)
● Very different types of quarries
– from sand to rock, limestone to clay
● Size ranging from 5 1000 ha
● Longevity ranging from <10 years to >100 years
ChI / Slide 7WCC, Jeju, Sep 2012
● Surrounding conditions ranging from monocultures to rainforest, industrial to urban areas
● Variety of jurisdictions and regulations
Biodiversity importance categories
1 Occurrence on site or within 5km or with relevant ecological connections to:
– globally threatened sp. (IUCN Red List)– overlapping with / adjacent to internationally recognised PA– Globally outstanding ecosystem / habitat
2 Occurrence on site or within 5km or with relevant ecological connection to:
nationally threatened rare sp
ChI / Slide 8WCC, Jeju, Sep 2012
– nationally threatened, rare sp.– nationally protected (recognised) area, reserve etc– nationally important ecosystem / habitat
3 Site:– in landscape with diverse, natural ecosystems – in modified landscape with potential for biodiversity
enhancement (biodiversity island)– with significant local value of the natural environment
4 Site in heavily modified, intensely managed landscape
Biodiversity Risk Matrix
Expected Impact
A B C D
Biodiversity importance
Likely impact; mitigation not possible
Likely impact; mitigation possible
Possible imp.; mitigation recommended
Unlikely impact
Risk to biodiversity value of site and/or surrounding area
ChI / Slide 9WCC, Jeju, Sep 2012
1 Critical Significant Medium Low
2 Critical Significant Medium Low
3 Significant Medium Low Low
4 Low Low Low Low
Monitoring and reporting system
Key requirements
● Meaningful, but straightforward to measure
● Sensitive to changes in management and/or protection
● Measurable by means of a simple methodology
● Largely assessable by non experts (Holcim staff)
ChI / Slide 10WCC, Jeju, Sep 2012
● Largely assessable by non‐experts (Holcim staff)
● To be expressed by standardised value
● Must fit into existing environmental reporting
● Allowing aggregation on national and global levels
Dilemmas and trade‐offs
Sound science (cause/effect)
rigo
ur
Minimum standard
DesirableMonitoring &
Indicator
Practicality, simplicity Scientific rigour
Affordable Expensive
ChI / Slide 11WCC, Jeju, Sep 2012
Limited meaning
Sci
entif
ic r
PracticalityVery involved, requiring expertise knowledge
Simple methods, to be done by
non-experts
Min
imum
sta
ndar
d
Expectationslocal communities
Expectationsconservation community
Needs/wishes of the company
Legal requirements
BIRS – principal idea
INVENTORY
Habitat extent
ESIA
10‐year repeats
Annual
Local experts
Holcim staffALLSITES
ChI / Slide 12WCC, Jeju, Sep 2012
Habitat condition
Habitat uniqueness
Species/habitats of special concern
BIODIVERSITY CONDITION INDEX
5‐10 yrs
Annual
Annual
Local experts
Local expert
Holcim staff
Sites with special
biodiversity management
3
Habitat condition
● Condition assessment
– Two persons (non‐experts) to walk independently for 30‐60 minutes through each of the habitats.
– Same season and time of day, similar weather condition
– 10‐15 questions about each habitat type to be answered on a scale of 1‐4 (implying poor to good condition) on the
ChI / Slide 13WCC, Jeju, Sep 2012
a scale of 1‐4 (implying poor to good condition) on the basis of visual guidance notes.
– 2‐3 fixed point photo for reference
● Condition of each habitat: mean of all values
Pictorial guides for assessing habitat condition
Are there other non‐woody flowering species consisting of…
only one species? two species? three species? more than 3 species?
2 out of 10‐15 questions
42 31
Score
ChI / Slide 14WCC, Jeju, Sep 2012WCC, Jeju, Sep 2012
Are the shrubs and/or trees growing above the height of the grasslayer …
virtually across the whole site?
abundantly found across the site?
sparsely spread across the site?
occurring as a very few isolated individuals?
42 31
Indicative wetlands questions
1 2 3 4
How many different wetland zones can you distinguish?
1 2 3 > 3
What is the water colour? Intense Distinct Light No colour
What is the turbidity of the water?
Very cloudy Cloudy Slightly cloudy
Clear
ChI / Slide 15WCC, Jeju, Sep 2012
How do the floating plants appear?
Dead & decaying
More than half brown & dying
Less than half brown & dying
All healthy
Do you see any invasive wetland plants?
Dense Many A few None
Do you see any dragonflies? None A few; one species
Some; > 1 species
Many; several sp.
Are waterbirds present? None Some; 1 sp. Many; 1 sp.
Some; >1sp
Many; se‐veral sp.
Aggregation of KPIs
Global Biodiversity KPI
Country ANational Biodiversity KPI
Country BKPI
Adjustments / weightings for:
• Relative biodiversity importance of region
• Relative biodiversity importance of country
ChI / Slide 16WCC, Jeju, Sep 2012
National Biodiversity KPI
Site 1 Biodiversity IndexKPI
Habitat value A
Habitat value B
Habitat value C
Site 3KPI
Site 2KPI
KPI
• Site heterogeneity, diversity of habitats
• Relative biodiversity value of habitat
within a country
Lessons…
1. Better to have some basic standard information on all sites than to have detailed information on a few sites only and none at all from all others.
2. Keep engaged with partner for continuing reality / practicality check.
ChI / Slide 17WCC, Jeju, Sep 2012
3. Involve partner as much as possible in development of ideas.
1
Creating sustainable brand value for companies
Conservation Campus 142Engaging Business for Conservation
IUCN World Conservation Congress
Jeju, South Korea, Sept 11, 2012
EROSEIEconomic Return on Social
EROSEIEconomic Return on Social
© 2012 by GoodBrand and SEMPORA
Economic Return on Social and Environmental
Investment
Economic Return on Social and Environmental
Investment
© 2012 by GoodBrand and SEMPORA
Critical issue for business:The smart and wise management of reputation
Era > Crisis > Era > Crisis > Era
Context Post-war austerity
70s/80s battleground
Age of Opulence
Financial/ values crisis
Age of Meaning
Consumer Paradigm
“I need” “I want” “I belong”
Citizen-consumers entering a new phase with new expectations from companies and brands
© 2012 by GoodBrand and SEMPORA
Paradigm
TypicalBrandMessages
- Availability- Consistency- Functionalperformance
? - More- Bigger- Faster- Cheaper
? - Smarter- Fitter- Wiser- Closer- Fairer
These changes will redefine how consumer-facing companies will compete in the future
Brands will need to connect with the most fundamental human values
© 2012 by GoodBrand and SEMPORASource: Roper Data
- to help citizens lead “better” lives:
- more meaningful- more responsible- more future-proofed
BY
We call this “brand social energy”
The opportunity for brands…
© 2012 by GoodBrand and SEMPORA
- looking after my family- enhancing my/our potential- helping me/us flourish- investing in my future- helping create a positive legacy
HOW- through its products and services, and how they are produced and consumed- through the wider changes it helps create and influence
2
[social equity]
Consumer or public fid i th l
Companies need brands with social equity
© 2012 by GoodBrand and SEMPORA
confidence in the values and capability of a brand
Companies want to measure their social equity performance
© 2012 by GoodBrand and SEMPORA
• An online survey representative of all adults including ethical consumer segmentation (25,000 adult ‘consumers’, 12 countries)
• 2000 brands
• Questions on social and environmental performance..
© 2012 by GoodBrand and SEMPORA
performance..
• …as well as brand energy, preference, loyalty
• Calculation of an index to give a single figure and relative score
The opportunity /chance – building credibility and trustThe 6 factors of social equity
© 2012 by GoodBrand and SEMPORA
Future shapersTrustedleaders
High integrity
but lacking dynamism
The social energy grid
© 2012 by GoodBrand and SEMPORA
Brand energy
Social equity
FollowersDynamic but
with questionable
integrity
High integrity but
lacking dynamism
Trusted leaders
l Equity
The Social Energy Grid
Perception of company/brand as ‘force for good’
Social Equity
Measuring brands as a force for good and a force for change
© 2012 by GoodBrand and SEMPORA
Followers
Dynamic but with
questionable integrity
Brand Energy
Social
Trusted leaders are perceived as a force for good and a force for change
They enjoy people’s goodwill
Perception of company/brand as ‘force for positive change’
Brand Energy
3
Social Energy Plot - UK
NGOs dominate the social energy field
© 2012 by GoodBrand and SEMPORA
Social Energy Plot - UK
Leveraging relationships with trusted NGOs will help brands be seen as a force for good
© 2012 by GoodBrand and SEMPORA
- Organic own label range for Hofer, Austria (part of Aldi)
-Builds its brand values by engaging consumers
Zuruck zum Ursprung shows how brands can build positive reputations through sustainability actions
© 2012 by GoodBrand and SEMPORA
by engaging consumers directly with the organisation and its supply chain partnerships, bringing sustainability and community to life for consumers in relevant, interesting ways (e.g. online “meet our farmers” programme)
Social Energy Plot: Dairy
…reflected in best in class dairy and one of highest environmental performances
© 2012 by GoodBrand and SEMPORA
Sometimes companies reach a point of realisationits time to change
© 2012 by GoodBrand and SEMPORA
Companies undergo a period of significant reinvention
© 2012 by GoodBrand and SEMPORA
4
Social Energy Plot - McDonald's 2008 vs 2010
…leading to transformed brand perception
© 2012 by GoodBrand and SEMPORA
Coffee companies are boosting their social equity performance by showing their work with partners
© 2012 by GoodBrand and SEMPORA
Social Energy Plot - UK
This transfers social equity from the partner NGO to the commercial brand
© 2012 by GoodBrand and SEMPORA
Social Equity Factors: Rainforest Alliance vs Kenco Social Equity Factors: Kenco vs Coffee Average
Kenco coffee UK is getting an environmental transfer effect from its NGO partner
© 2012 by GoodBrand and SEMPORA
Ensure the correct strategic fit operationally not based on communications
Plan for long term gradual brand evolution
Engage the senior people in the company on planning for brand value creation
F t lit
Thoughts on brand leverage to engage business in partnerships for conservation
© 2012 by GoodBrand and SEMPORA
Focus on tonality
Important principle 1: Balance
Securing reputation
© 2012 by GoodBrand and SEMPORA
reputation
Building
trust
5
"If you tell the truth you don't
Important principle 2: Transparency
© 2012 by GoodBrand and SEMPORA
truth you don t have to remember anything.”- Mark Twain
Important principle 3: Consistency
“It’s the most ambitious commitment ever to help smallholder coffee farmers achieve Rainforest Alliancecertification and improve coffee quality”
© 2012 by GoodBrand and SEMPORA
Chris Wille, Head of Sustainable Agriculture
The Rainforest Alliance
Nespresso AAA farmers
Meeting Club members in New York
quality
Important principle 4: Humility
© 2012 by GoodBrand and SEMPORA
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Business Ecosystems TrainingLearn how to train business on ecosystems
Conservation Campus
11 Sept 2012, 09:00-13:00
Introducing Business Ecosystems Training (BET)
program
The business case for training
72% of CEOs see education as the global development issue most critical to address for the future success of their business
86% of CEOs think that companies should invest in enhanced training of managers to integrate
t i bilit i t t t d ti
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However, only 60% of them are implementing this
sustainability into strategy and operations
Source: United Nations Global Compact CEO Survey 2010 (based on 766 completed responses)
Rationale for developing BET?
Business both impacts and depends on ecosystems
However, issues tend to be poorly understood
N d t fill k l d
Business
ImpactsDepends
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Need to fill knowledge gaps
Ecosystems
What is BET?
A comprehensive capacity building program that aims to equip business with the skills it needs to better understand, measure, manage and mitigateecosystem impacts and dependencies
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Leverages the wealth of existing WBCSD materials, methodologies and tools, also including other resources
Open-source
Who is it for?
Business audience
Different levels of management & seniority
Wide range of departments: from SD to procurement to finance
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Any professional who needs to manage its company’s risks and
opportunities
2
Program development
Governance: advisory committee made of ecosystem and education experts
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Curriculum design: by WBCSD member company KPMG
Structure (1/2)
A modular training programModules can be delivered individually or together
MODULE 1
Understanding the links between ecosystem services
and business
MODULE 2
Assessing business impacts and dependencies on
ecosystems
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MODULE 3
Valuing ecosystem services - an introduction
MODULE 4
Managing and mitigating business impacts on
ecosystems
Structure (2/2)
Customizable Different options for running BET:
As a standalone 2.5 day course
As two separate training blocks, i.e., a 1 day introduction followed by a further 1.5 day course
A t d l
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As separate modules
Customizable…
…to different sectors
…to different languages
…to different regions
…to your specific audience
What’s in the BET package?
Presentation material• PowerPoint slide packs
approx. 100 slides per module to choose from!
Guidance• Implementation Guide• Facilitator Notes• Glossary of Terms• FAQs• “Facilitation tips” videos
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• Shorter Executive Overview presentation
ac a o ps deos
BET extractsExamples of BET exercises that help
companies relate to ecosystems
Discussion questions
Business Ecosystems Training Score Card My company has been affected by the following challenges:
Water scarcity Yes No Don’t know
Climate change Yes No Don’t know
Habitat change Yes No Don’t know
Biodiversity loss Yes No Don’t know
Overexploitations of oceans Yes No Don’t know
Nutrient overloading Yes No Don’t know
Other:
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Other: ……………………………………………………………………………………………………...
My company benefits upon or impacts on the following ecosystem services:
ProvisioningThe goods or products obtained from ecosystems such as food, freshwater, timber, and fiber
Benefits Impacts Don’t know
RegulatingThe benefits obtained from an ecosystem’s control of natural processes such as climate, disease, erosion, water flows and pollination, as well as protection from natural hazards.
Benefits Impacts Don’t know
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Discussion questions (cont.)
Business Ecosystems Training Score Card My company has been affected by the following challenges:
CulturalThe non material benefits obtained from ecosystems such as recreation, spiritual values and aesthetic enjoyment
Benefits Impacts Don’t know
Note: we are not asking this specific question regarding supporting services as these services are underlying the above 3 categories (Supporting services: the natural processes such as nutrient cycling and primary production that maintain the other services)
My company has taken the lead on addressing ecosystems:
13September 2012
To manage risks Yes No How?…………………
To improve operational efficiencies Yes No How?…………………
To gain business opportunities Yes No How?…………………
Additional actions:………………………………………………………………………………………………………………
My company has considered the long term consequences of ecosystem degradation in its strategy:
Yes No How?……………………………
• Feedback...
14September 2012
Businesses impact on ecosystems and ecosystem services
Ecosystem change creates business risks and opportunities
Business case for action
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Businesses rely and depend on ecosystems and ecosystem
services
business risks and opportunities
Introduction
Issues business can face in daily operations and supply chains:
Water scarcity and declining water quality
Disruption of food, fiber or other natural industrial inputs
Increasing incidents of extreme flooding, storms or drought
Increasing stakeholder expectations (NGOs, customers, investors etc.)
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Tightened public policies on natural resource management or operational permitting
Traditional risk management processes do not always capture ecosystem risks / opportunities
Different risks and opportunities – overview
Business Issue
Operational Legal Reputational Market Financing
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5 key risks / opportunities for
businesses
Company commitmentsRio Tinto:
“ Our goal is to have a net positive impact on biodiversity by minimizing the negative impacts of our activities and by making appropriate contributions to conservation in the regions in which we operate.”Source: http://www.riotinto.com/documents/ReportsPublications/RTBidoversitystrategyfinal.pdf
Sony:
“Sony strives to achieve a zero environmental footprint throughout the lifecycle of our products and business activities.”
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Source: http://www.sony.net/SonyInfo/csr/environment/management/gm2015/index.html
Kimberly-Clark:
“100% of the virgin wood fiber to be sourced from certified supplier by 2015 (FSC Certification)”Source:
http://www.cms.kimberly-clark.com/UmbracoImages/UmbracoFileMedia/2010SustainabilityReport_umbracoFile.pdf
PPR:Implement an Environmental Profit & Loss Account (E P&L) across all Luxury and Sport & Lifestyle global brands by 2015.Source: http://www.ppr.com/en/press/press-releases/ppr-commits-group-environmental-profit-loss-account-2015
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How can business respond?
WBCSD encourages the business community to proactively address risks and explore opportunities by:
Measuring / valuing and managing / mitigating their ecosystem impact and dependence
Innovating and helping develop new markets for ecosystem services and eco-efficient goods, services & technologies
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Encouraging suppliers, purchasers and consumers to adopt best practices
Entering into creative partnerships to address on-the-ground issues
Promoting “smart” ecosystem regulation that reverses degradation, leverages market forces and “levels the playing field” for all.
Exercise - Sustaining the Ecosystem for Water, Wildlife and Community in India – Ambuja Cement (Holcim)
The issue (1/2)
Ambuja Cement:
leading supplier of cement, aggregates and ready-mixed concrete in India.
Employs approximately 4,500 people.
Operates the Ambujanagar cement plant in the Kodinar region of G j t I di
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Gujarat, India.
The facility has 3 closed and rehabilitated quarries and 6 active quarries.
To ensure the future availability of the key raw material required for cement (limestone), the plant will be aiming to enhance capacity at some of its other active mines.
Exercise - Sustaining the Ecosystem for Water, Wildlife and Community in India– Ambuja Cement (Holcim)
The issue (2/2)
The Ambujanagar facility is located between the Arabian Sea and the GirSanctuary and National Park, which together are a designated protected area. The Gir National Park provides crucial habitat for the last surviving population of the Asiatic lion.
There have been critical problems of freshwater availability in the state of Gujarat since 1970.
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The area where the cement plant is located is in a Coastal Regulation Zone.
Owing to over-withdrawal of freshwater and intensive land-use in the Kodinar region, there has been marked depletion of the water table and an associated serious increase in water salinity from the ingression of seawater into the water table.
Business risks and opportunities - Exercise
Type Risk Opportunity
Operational
Legal and political
R t ti l
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Reputational
Market and product
Financing
Exercise - Sustaining the Ecosystem for Water, Wildlife and Community in India– Ambuja Cement (Holcim)
The response (1/2)
Ambuja worked with local communities, natural resource management experts, non-governmental organizations and local authorities.
Adopted a landscape approach in addressing impacts of the quarrying activities.
Capturing and preserving freshwater – e.g. rainwater harvesting, converting the mined-out pits into artificial lakes and wetlands,
23September 2012
g p ,constructing 165 dams and small barriers to reduce the loss of water through shallow rivers and streams, etc
Quarry rehabilitation through tree planting: different tree species have been planted. Small patches of land are earmarked to grow medicinal plants and fodder-yielding plants. The company is also planning Jatropha plantations, which will serve as a source of bio-fuel in coming years.
Conserving the flora and fauna of Gir: a large number of tree species native to the Gir Forest are being planted in the reclaimed mines.
Exercise - Sustaining the Ecosystem for Water, Wildlife and Community in India– Ambuja Cement (Holcim)
The response (2/2)
Adopted a landscape approach in addressing impacts of the quarrying activities.
Protecting coastal zones through mangrove development: State authorities have given 150 hectares of land to the company for the development of mangrove along the Gujarat Coast through the planting of three native tree species.
24September 2012
Sustaining local livelihoods: Local people are employed in rehabilitation activities such as pit preparation, watering, tree planting, nursery development and construction of water harvesting structures.
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Exercise - Sustaining the Ecosystem for Water, Wildlife and Community in India– Ambuja Cement (Holcim)
The results
The water management program has raised the water table by eight meters, controlled the water salinity problem (fig. 1) and made quality freshwater easily available to the communities
In 2011, Ambuja Cement achieved its target of becoming water positive. This approach has helped the company strengthen relationships with all local stakeholders, which has guaranteed its li t t i th f t
25September 2012
license to operate in the future.
How to implement BET ?
Implementing BET
Delivering BET to business
To deepen knowledge and understanding of ecosystem services for key decision makers.
T d l i li t
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To develop specialist professional skills.
The more targeted the audience is, the better
Implementing BET
Possible audience within a company:
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Executive overview presentation
BET Roll Out 2012Status Update (August)
July ‘12
Spring ’12 BET delivered to 25 FLTs, who
became BET specialists within their companies BET sessions targeted at members
companies:- Montreux Members’ Meeting- Webinars x 2
2013Pl t t i
Aug. ‘12 CEV/BET Session
delivered to NMC (Swedish network of 270 cies) by NGO Gaia
USA
Switzerland
India
JapanKorea
Netherlands
Spring ‘12 BET part of the IUCN NL’s Leaders
for Nature Initiative (3 training sessions delivered so far)
Sweden
Portugal
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Module 1 translated in Japanese Delivered to
Hitachi’s employees
July ‘12Module 3 delivered in
Brazil (30 participants from 21 companies) Discussions about BET
customization to Brazil
October ‘12 (COP11) Launch of Leaders for Nature India
– BET at the heart of the initiativeSept-Nov ‘12
BET customization to IndiaDec‘12
Train the trainer in Delhi
Plan to customize and deliver BET in the US, in partnership with a US University
Sept ‘12 BET Conservation Campus – 4
hour session during the World Conservation Congress (30 participants from NGOs, Govt and business)
Aug-Sept ‘12 Discussions with BCSD Korea on
BET customization and translation
2nd Half ‘12 Accion RSE planning to
translate the material in Spanish
Brazil
Chile
2012 BET currently being translated in
Portuguese Training sessions by BCSD
Portugal by end ‘12
Next steps?
Get to know BET material
Customize the material (new case studies
Assess your audience needs
30September 2012
(available on the WBCSD website)
Keep in touch! [email protected]