SB Member Meeting London

www.SustainableBrands.com

WELCOME!


Goals for Today• Meet peers and potential collaborators• Review current SB member activities and initiatives• Help you place yourself in the space, challenge thinking,

spark new ideas• Explore potential opportunities for collaboration


Schedule• 9:00-10:00 Welcome, Check-ins, Backdrop• 10:00-11:00 Wake up to Families of the Future – Shake up

Thinking• 11:00-11:30 Break• 11:30-12:30 The New Metrics of Sustainable Business • 12:30-1:30 Lunch• 1:30-3:30 Brands Shifting Societal Aspirations & Demand• 3:30-4:00 Adjourn to Pub?


Check In…• Introduction

• What did you hear of interest over the past 2 days?• What are you most challenged by or excited about for the

coming year?


Background on SB Community and Membership Activities


SB Mission

To inspire, engage and equip companies to build new

business and brand value by innovating for sustainability


• Sustainability represents the primary innovation opportunity of the 21st Century.

• The leading brands of the future will be those that promise and effectively deliver meaning and delight for this and future generations.

• Building them takes a new set of skills, a new network of collaborators, and a new collection of tools.

Purpose of Membership Group

• Peer to Peer Learning: Eliminate Recreating Wheels• Problem Solving and Solutions Based Collaboration• Internal Alignment & Engagement• Platform for Communicating Commitments/Wins


Member Network


Three Current Work Streams

• Driving Breakthrough Innovation• Crafting the New Metrics/ROI of Sustainability• Shifting Societal Aspiration and Demand

– Improving Understanding of the Landscape– Engaging Employees– Inspiring/Enabling Consumer Behavior Change


Cross Departmental Engagement• CSR/Sustainability • Marketing• Communications• Business Development• Operations• Product Development


• Sales• Human Resources• Design• Supply Chain• Brand Strategy• Innovation


Discussion Leads: Fiona Bennie, Head of Sustainability, Dragon RougeNick Liddell, Director of Strategy, Dragon Rouge

Sustainability & The Future


Discussion Lead: Dimitar Vlahov, SB Director of Content

The New Metrics of Sustainable Business


“The great part of the miseries of mankind are brought upon them by false estimates they have made of the value of things.“

– Ben Franklin, 1780


#NewMetrics Brief History

Goal: To identify, define and quantify new forms of economic, social and environmental value and tie same back to the bottom line

• First #NewMetrics conference convened at Wharton in 2011• Conference attendance growing at 50% per year• In discussion with Harvard and MIT about hosting partnership in 2014


#NewMetrics in 2013 • New Metrics ‘13 Conference

• Corporate Member Meeting


#NewMetrics 2013 Conversation Themes


Modeling & Communicating ROI

• ROI of risk reduction and being seen as a product category leader [Video]

• Internal carbon budgets and fees [Slidecast]

• SROI: Putting a monetary value on social & environmental impacts [Slidecast]

http://www.sustainablebrands.com/digital_learning/event-video/conquering-uncharted-territory-roi-sustainability

http://www.sustainablebrands.com/digital_learning/slideshow/internal-carbon-fees-rescue



http://www.sustainablebrands.com/digital_learning/slideshow/best-class-methodologies-putting-monetary-value-social-impact




Human Capital & Employee Engagement

• Human capital valuation for next-frontier HR decision-making [Slidecast]

• Putting a monetary value on employee retention [Slides & Audio]

• Increase total QoR score at a rate faster than that of the company’s sales growth [Slides & Audio]

http://www.sustainablebrands.com/digital_learning/slideshow/breakthroughs-hr-decision-making-new-horizons-human-capital-valuation



http://www.sustainablebrands.com/digital_learning/slideshow/beyond-employee-engagement-using-new-metrics-embed-sustainability-through

http://www.sustainablebrands.com/digital_learning/slideshow/beyond-employee-engagement-using-new-metrics-embed-sustainability-through


Creating & Measuring Shared Value

• Measuring the core business benefits of a social value proposition [Slidecast]

• Measuring shared value across multiple geographies [Audio]

• The evolution of social impact metrics around product certification [Slidecast]

http://www.sustainablebrands.com/digital_learning/slideshow/measuring-core-business-benefits-social-value-proposition



http://www.sustainablebrands.com/digital_learning/audio/measuring-shared-value-throughout-value-chain

http://www.sustainablebrands.com/digital_learning/slideshow/natural-selection-evolution-social-impact-metrics




Selling Sustainability to the C-Suite

• Benefits of ambitious goals and data transparency [Audio & Slides]

• Strategic levers for non-CEOs [Audio & Slides]

• Meaningful Brands Index [Slidecast]

http://www.sustainablebrands.com/digital_learning/slideshow/benefits-ambitious-sustainability-goals-evolving-levels-data-transparency

http://www.sustainablebrands.com/digital_learning/slideshow/strategic-levers-non-ceos

http://www.sustainablebrands.com/digital_learning/slideshow/next-generation-differentiated-value-metrics-behind-meaningful-brands-ind




Performance Ratings & Reporting

• Context-based approach to corporate sustainability ratings [Audio & Slides]

• The value of a large ‘metrics hub’ [Slideshow]

• Using language and principles recognized by existing legal system and capital markets [Audio & Slides]

http://www.sustainablebrands.com/digital_learning/slideshow/getting-grip-context-initial-findings-worlds-first-science-based-approach

http://www.sustainablebrands.com/digital_learning/slideshow/preparing-push-pull-corporate-sustainability-reporting-one-companys-susta

http://www.sustainablebrands.com/digital_learning/slideshow/materiality-markets-tower-babel

On KPIs and the Real Goal Line (Bob Willard)

X1

Baseline year

Other companies

PerformanceToday

2Company

Goal

3

GO

AL LIN

E(S

)4

Gold-standard benchmark

Material, Science-based KPIs and Goals for a

Truly Sustainable Business [Slidecast]

Company X

http://www.sustainablebrands.com/digital_learning/slideshow/sneak-peek-gold-standard-benchmark-esg-performance



On Evaluating KPIs (Allen White / GISR)

Process• Assurability• Continuous Improvement• Impartiality • Inclusiveness• Transparency

• [Audio & Slides]

Content• Balance• Comparability• Comprehensiveness• Sustainability Context• Long-Term Horizon• Materiality• Value Chain

http://www.sustainablebrands.com/digital_learning/slideshow/redefining-value-moving-markets-future-sustainability-ratings


Corporate Member Meeting @ SAP


Key Discussion Questions

• What are the most cutting-edge KPIs you see your company, or your peers, using today and what makes them attractive?

• What breakthroughs or challenges are you experiencing with respect to goal-setting?

• Can we identify opportunities for accelerating momentum through shared resources or other forms of communication??


Corporate Member Meeting @ SAP

• Attending members reported currently managing a wide range of KPIs – from Coke, on one hand, who is managing 12 KPIs, 80% of them tied back to financial value, to others who are managing as many as 65 KPIs, few if any of which are correlated to ROI or reported regularly to C-Suite


Corporate Member Meeting @ SAP• Attending members agree that setting aspirational/stretch goals net better results than safe,

incremental goals, but significant obstacles remain. Major challenges:

– Hard to choose between time-bound and open-ended goals– Concerns over not reaching goals in a reasonable time frame– Hard to quantify and communicate ROI of reaching goals– Scope of goals may be beyond direct control– Missing compensation incentives for key partners– Missing executive support– Implications for business model innovation


Discussion Lead: John Swannick, Project Delphi

Valuing Non-Financial Performance: New Metrics for Companies and Investors


Executive Summary• 10 non-financial drivers most associated

with financial value in Europe: employee engagement, customer satisfaction, public perception, supply chain management, carbon emissions, waste, LCA, R&D, ethical integrity, board composition

• Essential KPIs for vast majority of world’s companies probably less than 10

• See the complete deck in the Corporate Member Forum

(must be a current SB corporate member to access)


#NewMetrics Resources• Download the free report here

• View more content from New Metrics 2013

• Follow the new_metrics channel

• Join the conversation on Twitter: #newmetrics

http://e.sustainablebrands.com/REPORTNewMetricsofSustainableBusiness2013.html

http://www.sustainablebrands.com/library_search/results/taxonomy:320

http://www.sustainablebrands.com/library/new_metrics

https://twitter.com/search?q=#newmetrics&src=typd

https://twitter.com/search?q=#newmetrics&src=typd

http://e.sustainablebrands.com/REPORTNewMetricsofSustainableBusiness2013.html


Discussion Lead: KoAnn SkrzyniarzGuest: Sally Uren, CEO, Forum for the Future

Shifting Societal Aspirations & Behavior


Shifting Societal Aspirations & Behavior How are brands driving change?

• Redefining Sustainability• Engaging Employees• Innovating Products, Services and Business Models• Communicating Better• Enabling Change• Leading Multi-stakeholder Collaboration


Redefining Sustainability…Beyond Green: Sustainable Brands are about well-being and purpose…

Recommended reading: “Flourishing: A Frank Conversation About Sustainability” by John Ehrenfeld

http://www.amazon.com/Flourishing-Frank-Conversation-about-Sustainability/dp/0804784159

http://www.amazon.com/Flourishing-Frank-Conversation-about-Sustainability/dp/0804784159

http://www.sustainablebrands.com/digital_learning/event-video/challenges-and-opportunities-putting-sustainability-heart-iconic-brand

http://www.sustainablebrands.com/digital_learning/event-video/making-sustainable-living-commonplace-%E2%80%93-embedding-social-impact-brands

http://www.sustainablebrands.com/digital_learning/packaging/enabling-market-sector-shifts-game-changing-brand-case

http://www.sustainablebrands.com/news_and_views/articles/dont-buy-jacket-lessons-successful-values-marketing

http://www.sustainablebrands.com/digital_learning/event-video/innovating-philanthropy-paneras-pay-what-you-can-stores

http://www.sustainablebrands.com/news_and_views/communications/mcdonalds-announces-commitment-promote-balanced-food-beverage-choices

http://www.sustainablebrands.com/digital_learning/event-video/creative-brand-approach-unrecognized-problem

Engaging Employees

• Ridesharing app = 36k carpools, saved 400k driving miles, 88 tons of CO2, 2,200 networking days, $3.1 million in business value

• Molson Coors saw a 10% increase in employee engagement with its “Our Beer Print” program

• £35 Million saved, plus 56% energy, 52% water, 40% waste reduction

1% Increase in Employee Retention = $81 million increase in profit at SAP

http://www.sustainablebrands.com/news_and_views/info_tech/sap-launches-carpool-app-help-businesses-save-money-and-engage-employees

http://www.sustainablebusinesslab.org/profiles/blogs/people-power-on-the-importance-of-engaging-people-in-sustainable-

http://www.sustainablebrands.com/news_and_views/mar2012/want-engagement-twist-try-beer-print


Designing it In

• TRESemmé Fresh Start Dry Shampoos allow consumers to clean their hair without using water

• Evolution in sustainable product design with strong sales profile

• New service offering leads to greater insulation sales and recycling

New Products or Services

http://www.sustainablebrands.com/news_and_views/articles/unilever-shows-roi-sustainability-initiatives-second-living-plan-progress-re

http://www.sustainablebrands.com/news_and_views/supply_chain/jennifer-elks/levi-strauss-co-unveils-new-wellthread-design-process

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/236858/DECC_loft_clearance_trial_report_final.pdf


Designing it In

• Collaborative/Sharing Economy

• Circular Economy – fishing nets to carpeting

• Product to Service Innovation

New Business Models

http://www.interfaceglobal.com/Products/NetWorks.aspx

http://www.lighting.philips.com/main/projects/rau.wpd

http://www.sustainablebrands.com/news_and_views/collaboration/airbnb-lyft-partner-new-sharing-economy-advocacy-group

Driving Awareness & Engagement

• Dell has proven its commitment to reducing waste through constant packaging innovation.

• Kendall-Jackson installs largest PV array of its kind in the country, with plans to expand to other locations

• Sainsbury’s goes beyond just zero-waste with two new “triple zero” stores: zero emissions, zero waste, and zero water impact

Leading by Example

http://www.sustainablebrands.com/press/dell-commits-waste-free-packaging-stream-2020

http://www.sustainablebrands.com/news_and_views/articles/kendall-jackson-installs-largest-rooftop-solar-cogeneration-system

http://www.sustainablebrands.com/news_and_views/articles/kendall-jackson-installs-largest-rooftop-solar-cogeneration-system

http://www.sustainablebrands.com/news_and_views/retail_innovation/jennifer-elks/sainsburys-ups-zero-waste-ante-first-triple-zero-stor

http://www.sustainablebrands.com/news_and_views/retail_innovation/jennifer-elks/sainsburys-ups-zero-waste-ante-first-triple-zero-stor


• MOM Brands campaign to educate consumers on the benefits of bag packaging over bag-in-box packaging

• Care to Recycle campaign to increase consumer awareness of the lack of recycling in the bathroom

Education and Advocacy

• Chipotle advocates for natural, organic, local foods and hopes to educate consumers through a

game app

http://bagthebox.com/

http://caretorecycle.com/

http://www.scarecrowgame.com/


• Fiat markets the 500 for its style and performance, rather than its efficiency, to make small cars sexy

• Sony Electronics uses the Practically Green gamification tool to get employees engaged and excited about sustainability

• Sunrise Belongs to Moderate Drinkers campaign shows that you can get more out of the night by drinking responsibly

Making it Fun, Sexy or Cool


https://www.youtube.com/watch?v=siWVgAzhFC8

https://www.youtube.com/watch?v=OHUpQZIylVc

http://www.sustainablebrands.com/digital_learning/event-video/social-engagement-next-episode-update-gamification-and-other-sticky-tec

Enabling Change

• BMW will offer i3 owners a gas-powered loaner car for longer trips, removing a major barrier to adoption of electric vehicles

• Real time data to support and encourage healthier activity levels

Providing Feedback, Infrastructure, Support and Incentives

• Sprint leads the industry in phone recycling through internal infrastructure and customer incentives


http://www.edmunds.com/car-news/2014-bmw-i3-gas-loaner-program-to-ease-range-concerns.html

https://secure.sprintbuyback.com/cns/

Multi-stakeholder Collaboration

• A coalition of industry-leading brands sign up to support carbon legislation. Ad runs on jumbo screen in Times Square

• How2Recycle labels: Several industry leaders have joined together to improve general consumer recycling behavior

• Celebrity musician Will.i.am teams up with Coca-Cola, Beats by Dre, and others to promote products made of recycled plastic

Brand Support of Multi-sector Collaboration to Shift Behavior at Scale


https://www.youtube.com/watch?v=s7qPUynLY94

http://www.how2recycle.info/

https://www.facebook.com/EKOCYCLE


Key Discussion TakeawaysRedefine “purchasing power”Leverage peer collaboration

Explore co-innovationEvolve from “net-zero” to “net positive” Escape pilot purgatory to reach scale

It’s “future visioning,” not “sustainability”Connect the dots for and to employeesLearn from own mistakes in iterations

SB Member Meeting London

Business

Transcript of SB Member Meeting London