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Executive Summary
Corporate Disruptors:How business is turning the world’s greatest challenges into opportunities
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This report is in collaboration with the World Economic Forum’s Young Global Leaders Community and an output of the YGL Sustainable Development Goals initiative.
The Forum of Young Global Leaders is a unique, diverse, global community of the world’s most outstanding, next-generation leaders nominated under the age of 40, who commit a portion of their time to jointly shape a better future and thereby improve the state of the world. To achieve its mission, of shaping a positive future, the Forum of YGL acts as a platform for young leaders to be both a voice for the future in global thought processes and a catalyst for joint action when appropriate. Together, its community members form a powerful international force for the global common good.
2015 2050
Enormous value creation potential by providing Quality healthcare at A�ordable price in an easily Accessible manner.
Access to primary healthcare and changing demographics are driving the global health and well-being development agenda
What does this mean for the business?
$34 bn
Projected global telemedicine market by the end of 2020
$87.7 bn
Low income Health Care Opportunity
8.9 bn
Potential access to skilled professionals across 107 countries
Businesses need to invest in state of the art infrastructure, identify the right partners and develop innovative operating models to realize this value.
Read our full report to find out how
Unilever’s Lifebuoy soap has an ambition to improve hand washing habit of 1 billion people, thereby reducing incidence of child death up to 44%.
Infant Mortality
43 deaths per 100,000 births
(Against SDG target of 25)
Maternal Health
210 deaths per 100,000 births
(Against SDG target of 70)
89%of 1.8 billion youth aged 10-24 live in developing economies today
Over 80%of the world's aging population (over 60) will live in developing countries by 2050
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Introduction 4
A new world for business 5
The world’s greatest goals – What does this have to do with business? 8
Deep Dive: From the MDGs to SDGs 10
Key enablers 14
From responsibility to opportunity 16
Infographics: 18Visual summary for the 17 sustainable development goals
References 35
Contents
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Introduction
Demand for goods is outstripping the supply of finite virgin resources, resulting in commodity price volatility and escalation, as well as severe negative environmental impacts.
Do these sound familiar? They should, because that is the world in which global businesses operate today.
As these five trends have converged to create a world characterized by volatility, uncertainty and complexity, companies understandably find themselves in a quandary: They are unsure of what it all means for their business—both now and in the long term. But perhaps even more important, there are no clear clues for how they should respond.
Enter the global development agenda and the Sustainable Development Goals (SDGs). As companies grapple with how they need to change their organizations to thrive and grow in today’s evolving, often chaotic, world, the SDGs can serve as a guiding light. They are a framework that can help companies capitalize on the possibilities inherent in these macro trends by entering new markets, developing new solutions and services, and creating entirely new businesses.
A number of leading companies—corporate disruptors— have found a way to grow and increase competitiveness despite, and sometimes because of, the global challenges they face. They are already using the SDGs to help them replace the notion of Corporate Social Responsibility with something much more powerful: Corporate Social Opportunity. In the process, they are creating new value in new ways—whether it is by growing revenues, reducing costs, mitigating risks, improving brand value, or some combination of the four.
In the following report, we describe how companies can move beyond a focus on overcoming the volatility, uncertainty and complexity of today’s marketplace. Instead, we look at how companies can use the SDGs to find opportunities to grow and “future-proof” their business—all while generating the significant societal and environmental benefits that their customers, as well as the global community, increasingly value.
Shifting patterns of global growth, especially in emerging economies, are making customers a moving target. Demographic changes are roiling both the consumer and labor markets, posing significant challenges for customer and talent acquisition and retention. Digitally empowered consumers have higher expectations than ever, and are taking companies to task that do not meet them. Enormous business potential exists in the data companies collect, but pressure is increasing to be much more vigilant in how that data is secured and used.
Urban Population in 2050 (mn)
India
United States of America (USA)
Nigeria
Brazil
Pakistan
Indonesia
Mexico
Philippines
China
Russian Federation
875 mn
365 mn
218 mn
204 mn
199 mn
190 mn
113 mn
101 mn
1,038 mn
96 mn
China India USA Nigeria Brazil
Pakistan Indonesia Mexico Philippines Russia
73% 54% 90% 75% 94%
59% 66% 88% 69% 83%
Percentage (%) reflects the urban population as a fraction of the total population
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Shifts in global demandFor the past two decades, the global balance of power has been slowly shifting from highly developed to emerging economies. Developing countries already hold around two-thirds of the world’s total foreign exchange reserves. And by 2020, the combined output of the three leading emerging economies—China, India, and Brazil—will surpass the aggregate production of the United States, Germany, United Kingdom, France, Italy and Canada.1
Accompanying the rise of emerging markets is an unprecedented wave of urbanization. In 1950, rural areas were home to a majority of the global population. Today, over half of the world’s population live in urban areas.2 And the trend shows no sign of stopping: Over two-thirds of the global population will likely be urban dwellers by 2050, driven predominantly by today’s emerging economies.
Perhaps these figures should not be surprising, given emerging economies are projected to represent a major share of global population overall, with India, China and Nigeria alone accounting for approximately 3.5 billion people (out of the projected global population of around 9.7 billion) by 2050.3
Along with urbanization comes increasing affluence. According to estimates by Reuters, the global middle class is expected to more than double by 2030, reaching 4.9 billion.5
These population growth patterns will shift consumer growth and purchasing power from rural to urban areas and from developed to emerging economies. Businesses will need to realign their growth strategies and their suite of products and services to tap into these new markets and consumer pools.
A new world for businessThe world is changing rapidly—the evidence is all around us. The next few decades will see significant shifts in consumer demand, buying power and expectations, driven by massive population migrations and widespread information availability. At the same time, an increasingly resource-constrained world will be forced to deal with decades of unfettered growth and unsustainable consumption of natural resources. The implications for businesses are significant: With these changes fundamentally redefining the rules of the game, companies increasingly recognize they must take a deeper look at what this new day dawning means for them and how they should respond. Five major trends, in particular, are forcing companies to find new and innovative ways to deliver value for their stakeholders.
Figure 1: Top ten countries with highest forecasted urban populations (2050)4
Percentage (%) reflects the country’s population in the respective timeframe as a fraction of the global population
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1950 (Estimates)Total Population = 2.52 billion
India
United States of America
Russian Federation
Japan
Germany
Indonesia
Brazil
United Kingdom
China
Italy
14.9%
6.2%
4.1%
3.3%
2.8%
2.8%
2.1%
2.0%
21.5%
1.8%
India
United States of America
Indonesia
Brazil
Pakistan
Nigeria
Bangladesh
Russian Federation
China
Mexico
17.9%
4.3%
3.5%
2.8%
2.7%
2.7%
2.2%
1.8%
8.1%
1.7%
China
Nigeria
United States of America
Indonesia
Pakistan
Brazil
Bangladesh
Democratic Republic of the Congo
India
Ethiopia
13.9%
4.1%
4.0%
3.3%
3.2%
2.5%
2.1%
2.0%
17.5%
1.9%
2020 (Projections) 2050 (Projections)Total Population = 7.76 billion Total Population = 9.73 billion
Figure 2: Changing world order: Most populous countries from 1950 to 205018
The dual demographic bulge The world isn’t just growing. It’s growing at opposite ends of the hourglass. At one end is the elder population. Today, the global population aged 60 or above is about 901 million, around 12 percent of the overall global population.6 By 2050, this is expected to jump to more than 2 billion, constituting almost 20 percent of the overall population.7 Developed economies are expected to contribute most significantly to this aging trend.8 In Europe, for example, around 24 percent of the population is currently aged 60 or above, the highest in the world.9 By 2050, with the exception of Africa, all major areas of the world are expected to have more than 25 percent of their population above 60 years.10
On the other side of the hourglass is the young population, generally centered in many developing economies. In Africa, for example, around 41 percent of the population is under the age of 15, and an additional 19 percent are between 15 and 24 years old.11 Similarly, over 40 percent of the population of Latin America and Asia is under the age of 24.12
Further illustrating the emerging-developed economy divide is this: The median age in the world’s least-developed countries today is 20, compared with 42 in Europe.13 By 2050, we will likely see the same schism, with the median age of the least-developed countries rising to 26 compared with 46 for Europe.14
As these dual trends play out, businesses will need to rethink their consumer and employee strategies. There are certainly new commercial opportunities in better targeting a young population (often with more disposable income) or an aging consumer base (often with greater brand loyalty). But there also are talent-related challenges as millions of people leave and enter the workforce at very different career stages. According to a recent Accenture survey of more than 1,000 senior executives, “attracting, retaining and developing skilled talent” is a primary concern for business, and that is not likely to change anytime soon.15
The rise of the informed consumerAs the global population shifts, a different kind of consumer is emerging, one who is greatly enabled by the growth of digital technologies. This consumer is more connected and more informed than ever, and has higher expectations for both government and business.
Recent research backs this up. In a recent study of around 30,000 consumers across 20 countries, almost 72 percent indicated businesses are failing to meet their expectations.16 That same study found today’s consumers expect more from their purchases than just the acquisition of products and services—and it is an expectation that companies currently fail to meet. For example, almost 81 percent of surveyed consumers said a product’s ability to enable healthy lifestyles is an important purchase criterion; however, only 42 percent believed companies are currently meeting this need.17
At the same time, consumers are becoming increasingly conscious of their purchases and expect businesses to be both open and ethical about their products and services—an area in which businesses are also falling short. For example, in a survey of 500 executives,
almost 83 percent think the transparency of products’ supply chains affect consumers’ confidence in a brand and their buying behavior.19 Yet, in another survey, 67 percent of the 1,000-plus senior executives surveyed said businesses are not doing enough to tackle sustainability challenges.20
Perhaps the most severe criticism leveled by consumers is the one that emerged from a survey conducted by Edelman Trust in 2015.21 More than half of the people in that survey believe business innovation is driven by greed and money rather than an intent to benefit society, and that there isn’t sufficient government regulation for many industry sectors.
Digital technologies are helping companies respond to consumers who demand more than just products and services from business. By 2030, Information and Communication Technology (ICT) will connect 2.5 billion extra people to the “knowledge economy.”22 This will provide 1.6 billion additional people access to healthcare and almost 500 million new consumers access to e-learning tools. And for businesses, the opportunities to monetize this new ICT-enabled access are huge. An assessment of eight economic sectors—mobility and logistics, manufacturing, food, buildings, energy, work and business, and health and learning—found ICT could generate more than $11 trillion in economic benefits per year by 2030.23
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Resource use
Economic development
1
10
100
10,000 100,000100 1,000
Colombia
China Brazil
Bangladesh
Australia
Germany
Chile
Sweden
Niger
India
Tons/Cap
GDP/Cap
2.5 billion new consumers to join the
middle class by 2030 (+100% vs. 2013)
Figure 3: Log plot of resource use and economic development (2010, 166 countries)35,36
Expectations for digital responsibilityThe exponential growth of digitally enabled products and services will be a boon for businesses everywhere. For instance, by 2030 there will be more than 100 billion “connected devices” around the world.24 This surge in digital connectivity that will enable organizations to access increasingly large amounts of consumer data they can use to create stronger customer engagement and loyalty.
However, while digital connectivity presents a huge opportunity to better target and serve customers, it also poses a risk with respect to ethical usage of consumer data—something consumers are clearly worried about. In a recent Accenture study, almost 44 percent of consumers indicated that they are wary about the information they share due to lack of confidence in the online security that protects their personal data.25 In another study, the TRUSTe Consumer Confidence Index, nine in 10 internet users in the United Kingdom and the United States said they would avoid doing business with companies that do not protect their privacy.26,27
The challenge for companies is how to leverage digital and the data those technologies generate to improve all dimensions of their business (and society) while ensuring they are responsible stewards of all the data they collect and use.
Natural resource complexity and environmental constraintsAccenture’s recent research on the Circular Economy finds that, at the current rate of consumption, we will be over-utilizing the planet’s resources by a factor of three by 2050.28 The demand for constrained resources (such as biomass, metals, etc.) is expected to grow from around 50 billion tonnes in 2014 to around 130 billion tonnes by 2050.29 Even in the best-case scenario, economies are not expected to produce more than 80 billion tonnes of these resources by 2050—a gap of more than 40 percent.30
With demand continuing to far outstrip supply, companies are bracing for the impact on commodity prices. In fact, it is already happening. During 1960 to 2000, every 1 percent of growth in GDP was accompanied by a 0.2 percent drop in the commodity price index.31,32,33 Since the start of the new millennium, we see price moving in concert with growth: For every 1 percent increase in GDP between 2000 and 2014, there has been a 1.5 percent increase in the commodity price index.34
Beyond the price impact is the environmental one. Based on historical trends, for every 1 percent increase in global GDP, CO2e emissions have risen by approximately 0.5 percent and resource intensity by 0.4 percent.37 Under a “business as usual scenario,” the Intergovernmental Panel on Climate Change (IPCC) forecasts temperature increases of between 2.6 and 4.8°C by the end of the century, driven by continued growth in greenhouse gas emissions.38
The inescapable conclusion from this data is that the global economy must decouple economic growth from the use of finite virgin resources to avoid volatile prices as well as reduce the negative impacts on the environment. This will require businesses to adopt new business models that enable them to reduce (and eventually eliminate) their use of finite virgin resources in their value chains, products and services.
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The world’s greatest goals – What does this have to do with business?
Figure 4: Continuum of corporate social opportunity maturity
The preceding discussion lays bare the enormous challenges companies around the world face. The five macro trends are difficult enough to address in isolation. Taken together, they can almost seem insurmountable. The reality is, companies need to change—significantly—to be able to grow and thrive in the coming decades. The question is, how? The UN’s Sustainable Development Goals (SDGs) provide valuable guidance.
Corporate Social Opportunity – Maturity Continuum
Impa
ct o
n bu
sine
ss, c
omm
unity
and
env
ironm
ent
Basic• Limited awareness of SDGs• May align a few CSR (Corporate Social Responsibility) initiatives to global goals• May sponsor internal campaigns or annual events; initiatives typically funded through CSR funds, usually without a particular expectation of RoI.
Strategic• Diligent mapping of all CSR and EHS (Environment, Health and Safety) programs to the SDGs• SDGs prioritized based on organization’s core competencies• Progress is tracked and reported through chosen indicators
Competitive• Leverage SDGs as a framework to grow business and gain competitive advantage• Typical ways of extending competitiveness include extending products and services to new markets, developing more resilient supply chains, investing in global workforce etc.
Transformational• Develop new businesses to respond to challenges / opportunities outlined in the SDGs• Actively engage diverse stakeholders (suppliers, partners, consumers, government, NGOs etc.) to shape innovative operating models
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In September 2015, 193 countries adopted the SDGs to guide global development in the next 15 years (see “Deep Dive: From MDGs to SDGs”). Through their ambitious and holistic targets—covering people, equitable growth and the environment—the SDGs can serve as a framework for tackling the challenges companies face. In fact, leading companies view the SDGs as a way to help them migrate from Corporate Social Responsibility to Corporate Social Opportunity, thereby becoming more competitive, resilient and “future-proof” in an increasingly volatile, uncertain, and complex world. Some companies are even seeing Corporate Social Responsibility as their reason for being, developing new business models to capitalize on the opportunities of the SDGs..
In considering the SDGs, companies face a strategic choice: How deeply do they want to engage in the pursuit of the SDGs? In our research we found that the more strongly a company commits to the SDGs, the more significant the impact on its business, the community, and the environment. As illustrated on the maturity continuum in Figure 4, leading organizations view global goals as a framework to differentiate themselves by expanding their customer base, developing new products and services, developing more resilient supply chains, generating future talent for their workforce and deepening their relationships with their customers and partners.
Those with the strongest commitment view implementation of SDGs through the lens of value creation—i.e. growing revenues, reducing costs, mitigating risks and improving brand value (Figure 5). These organizations are positioning themselves to drive profitable growth despite—and sometimes because of—the external challenges.
In Figure 7, we highlight how some of the world’s most forward-looking organizations are creating value by aligning with the 17 SDGs.
Grow Revenue(new products / services, serving new market segments etc.)
Build Brand(positive image through responsible operations, digital responsibility etc.)
Reduce Costs(better resource e�ciency, circular operating models, lower emissions etc.)
Mitigate Risks(license to operate, compliance through better transparency, traceability etc.)
Short term Long term
Redu
ce n
egat
ive
Incr
ease
pos
itive
Figure 5: Business value creation levers and the global goals
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Deep Dive: From the MDGs to SDGs
Figure 6: 17 Sustainable Development Goals
The Millennium Development Goals During the Millennium Summit in September 2000, the UN set out to establish its role in the 21st century by drafting the Millennium Development Goals (MDGs). These goals were aligned to the basic human rights and intended to reduce extreme poverty while promoting gender equality, education, and environmental sustainability. In the past 15 years, the MDG for extreme income poverty was cut by more than half and MDG-linked efforts have helped to reduce child mortality by 50 percent. However, despite these successes, not all MDGs were met and a need to expand the development agenda going forward remained. This paved the way for the development of the Sustainable Development Goals (SDGs).
The Sustainable Development GoalsTo build on the sound foundation laid by the MDGs, the SDGs were conceptualized at the UN Sustainable Development Conference in Rio de Janeiro in June 2012 and formally adopted by 193 member nations of the UN in September 2015. The SDGs, also referred to as The Global Goals, are a set of 17 goals that are expected to set the world’s development agenda for 2015–2030. The 17 goals are augmented with 169 underlying targets, seeking to ensure the measurability of progress.
“ The Millennium Development Goals have shown that we can make profound differences in people’s lives. The journey we started in the year 2000 has seen us build a solid foundation for further progress.”39
Ban Ki-moon (September 25, 2013)
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12
Figure 7: Illustration of companies creating value through alignment with SDGs
Organization Action/Initiative SDG Aligned
Daimler AG Daimler AG partnered with POEMA (local antipoverty program) in the poverty stricken north-east part of Brazil to construct a high-tech factory to manufacture headrests and seats out of coconut fibers from locally grown trees. The factory contributed to the local economic development by employing over 5,200 people and generating revenue by leveraging a locally sourced input.40
Impacted value levers: Revenue, Brand
TNT TNT has partnered with the UN to combat hunger by leveraging TNT’s services of transport optimization, fleet and warehouse management to improve aid delivery mechanisms. This partnership has delivered close to 114 specialist aid delivery projects especially during natural calamities like the tsunami in Asia in 2004, earthquake in Pakistan in 2005 and earthquake in Haiti in 2010.41
Impacted value levers: Brand
Unilever Unilever’s Lifebuoy soap brand has undertaken an initiative to improve the hand washing habits of 1 billion people, thereby reducing the incidence of child deaths by as much as 44 percent. To implement the initiative, the company has rolled out several pilots in Asia, Africa and Latin America.42
Impacted value levers: Revenue, Brand
Dangote Academy
Dangote Group (the largest manufacturing conglomerate in West Africa) invested close to $6.5 million in Dangote Academy in Nigeria to address the difficulty of finding employees with the right technical skills. The initiative is helping reduce talent sourcing costs while providing vocational training to local youth.43
Impacted value levers: Cost, Brand
Care.com While care is not a women’s issue, caregiving responsibilities are overwhelmingly managed by women around the world. Care.com, through its unique model, aims to ensure that women can get the care they need to stay in the labor force and sustain their professional careers.44
Impacted value levers: Revenue
SABMiller In South Africa, SABMiller faced operational risks related to water quality concerns. The company undertook a “beyond the breweries” approach and adopted a localized solution by involving local communities and other stakeholders. This has helped the company reduce close to 23 billion litres of water compared to the water usage in the breweries in 2008.45
Impacted value lever: Cost, Risk, Brand
Total Total is undertaking initiatives to diversify its oil and gas business and grow its renewable capabilities. The company is investing $223 million to transform its unprofitable LeMede oil refinery into a bio-fuel plant. It is also planning to invest $500 million annually in developing renewable energy capabilities.46
Impacted value levers: Revenue, Risk, Brand
Sun Edison Sun Edison is partnering with Rockefeller Foundation to set up more than 100 off-grid solar energy plants in rural India. The initiative is creating shared value by bringing economic opportunity to villagers through the use of clean electricity while creating a new customer base for the company.47
Impacted value levers: Revenue
Google Google has recently launched an initiative (called Sidewalk Labs) that will leverage technology and innovation to improve urban life. The initiative seeks to improve city life by incubating urban technologies to address such issues as cost of living, energy usage and transportation.48
Impacted value levers: Brand, Revenue
13
Organization Action/Initiative SDG Aligned
ITC Limited ITC, a leading Indian based diversified conglomerate launched its “e-Choupal” initiative, which provides internet access to rural farmers to help them make more informed business decisions. The effort allowed ITC to better manage its up-stream supply chain while improving farmers’ quality of life.49
Impacted value levers: Revenue, Cost
E.ON E.ON is creating an integrated energy infrastructure for a whole city district in Malmo, Sweden. As part of this collaboration, it will supply electricity exclusively by renewable sources. It is also helping lay communication channels looping all systems to minimize energy losses and meet high demands.50
Impacted value levers: Revenue
Michelin Michelin has created an innovative business model to recycle tires close to the end of their useful life. By offering tires as an extended service, it is not only creating additional revenue but also promoting road safety (as customers are likely to return old or unsafe tires) and facilitating better resource usage.51
Impacted value levers: Revenue, Cost, Brand
Tesla Motors Tesla Motors’ innovative electric car is designed for zero emissions. The electric car requires only 40amps for charging, which is equivalent to using an oven. The innovative product launch has helped the company build its brand image as well grow revenues, while ensuing positive climate impact.52
Impacted value levers: Revenue, Brand
Tesco Tesco adopted a sustainable seafood policy based on recommendations from the Marine Stewardship Council. The company is also building a system to evaluate the sustainability quotient of its fisheries. In addition to improving its brand, these initiatives could help Tesco generate demand for new fish species farmed sustainably.53
Impacted value levers: Revenue, Brand
Weyerhaeuser Weyerhaeuser has been actively pushing the sustainable forest management agenda with more than 198,000 acres of land subscribing to third-party sustainable forestry standards. The company is actively ensuring that all its forests and timberland have appropriate forest certification.54
Impacted value levers: Revenue, Brand
Nestlé In Sri Lanka, the 30-year war ending in 2009, left a significantly underdeveloped dairy industry in the Northern and Eastern provinces. By accelerating its dairy development efforts in 2009 and increasing its fresh milk collection, Nestle-Lanka enabled the resettlement of war-displaced people and provided livelihood to 18,000 rural farmers.55
Impacted value levers: Revenue
MasterCard MasterCard Aid Network, an end-to-end technology solution co-created with humanitarian organizations, can distribute aid swiftly and safely even in the absence of connectivity. The solution has helped 15,000 people in Yemen and 9,000 in Philippines receive aid through programs managed by World Vision.56
Impacted value levers for partners: Brand
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Implementation Enablers
Physical Infrastructure
Digital Infrastructure
Financing and Investments
Partnership Models
Data and Accountability
Brief Overview Required to upgrade / expand capacity and add the appropriate infrastructure to support the needs of a growing population
In today’s age of the “Internet of Things (IoT)”, a strong digital infrastructure is needed to build efficiency and eliminate redundancies in an increasingly complex technology ecosystem
The envisaged global scale of implementation will necessitate going beyond aid-flows to identify sustainable funding sources
For the SDGs to deliver inclusive, scalable and sustainable impact, innovative partnership models that leverage assets across multiple sectors and actors will be critical
Data will be critical to providing timely information for decision-making and relevant inputs to measure progress and accountability
Key enablers
Through our in-depth analysis of the Global Goals we have identified five key implementation enablers (see Figure 8).
Given the 17 SDGs’ breadth of coverage and envisaged scale of implementation, a variety of critical enablers will be needed to help companies achieve their goals. The nature of enablers required may vary depending on the nature of the goal. For instance, capacity expansion and infrastructure investments may be needed to meet targets related to sustainable cities or clean energy. Or a goal related to eliminating poverty may require innovative partnership models (often with local NGOs), which are critical to scaling and reaching masses at the base of the pyramid.
Figure 8: Key enablers for Sustainable Development Goals implementation
$
15
Physical Infrastructure
As highlighted earlier, at the current rate of increasing resource consumption, we will need three planets by 2050 to meet demand— which is clearly not possible. Thus, a massive drive is needed to expand the capacity and resiliency of our physical infrastructure. For example, as part of Goal 11 (Sustainable Cities and Communities), we will have to accommodate 2.5 billion new urban dwellers by 2050.57
Digital Infrastructure
A digital infrastructure is expected to play a key role in enabling responsible growth in the coming years and to realize targets laid out within the SDG framework. Furthermore, the effective use of digital solutions could significantly help decouple national growth—especially those in emerging and developing markets—from the use of finite and constrained natural resources.
Financing and Investments
One of the fundamental ways in which SDGs differ from MDGs is that these new goals require sustainable funding sources to achieve the ambitious targets set for the 2015-2030 timeframe. The investments are needed to support all goals, including quality R&D for innovation, massive capital investments for infrastructure capacity and expansion, testing and scaling of proven solutions, and financing of new adaptation techniques. According to some estimates, as much as $4.5 trillion per annum is needed to meet these targets, which compared with current investment levels, leaves a gap of around $3.1 trillion to be filled.58
Partnership Models
The SDGs are diverse and require action at scale across all countries. General consensus among experts is that the magnitude and scale of impact envisaged mandate a collaborative approach, one that extends beyond traditional development institutions and north-south, donor-recipient paradigms. The implementation of SDGs by 2030 requires a multi-stakeholder approach based on “mutual accountability.”59 Participants include government (both national and sub-national), civil society, private sector, social entrepreneurs, academic institutions, multilateral institutions, faith-based communities, and citizens (especially youth).60 Businesses are increasingly working with local partners in form of development organizations and NGOs to utilize their valuable local knowledge and expertise to deliver on the development goals.
Data and Accountability
Data-driven decision making has been a hallmark of successful companies for decades. As near-real-time data and analytics tools become increasingly available, more business decisions—especially those that involve long-term or socially driven investments—will require reliable information with a clear return on investment.
At the same time, data will be critical to measuring the success and progress of investments that provide both an economic and social or environmental return. Availability of quality, relevant and timely data—especially related to new consumer classes and emerging markets—will become increasingly important to leading companies looking to leverage the SDGs as a framework for growth.
$
16
Some companies will naturally align with one or two goals, maybe even a handful of them. Others may touch all 17, and still others may choose to leverage non-aligned goals (or their underlying business opportunities) to move into new markets or create new businesses. The key is that this is not an all-or-nothing scenario. Whether a company is inventing new widgets, producing goods, selling products or delivering services, the SDGs provide a universal framework for all businesses to both play their part as global actors, as well as create new opportunities for growth and competitiveness. By addressing the key challenges outlined by the SDGs, businesses can partner with governments to enable them to better structure their critical investments and implementation approach in order to drive future prosperity and development.
The examples above are just a handful of how leading companies are already leveraging the SDG goals to create business value in the form of revenue generation, cost reduction, risk mitigation, and brand enhancement.
In the remainder of this report, we look at each of the 17 goals in more detail—highlighting key global trends impacting the goal, presenting some suggestions for translating challenges into opportunities, discussing key enablers, and showcasing examples of how businesses are leading today.
The infographics that follow in the remainder of this executive summary provide additional detail on each of the 17 goals and examples of how leading companies are making their mark. The full report can be found at www.accenture.com/corporatedisruptors.
From responsibility to opportunityThe Sustainable Development Goals represent by far the greatest development agenda the international community has ever signed up for. The overarching objective behind the SDGs may have been to drive positive social and environmental impact. However, the SDGs can also serve as an important framework for businesses to grow and become more competitive, especially in an increasingly volatile, complex and uncertain world.
17
$ $ $ $ $$ $ $ $ $
Untapped customer base o�ers business potential in terms of demand and low-cost production
Poverty reduction requires e�cient labor use, inclusive growth and access to equal rights
What does this mean for businesses?
Partner with industry players to develop and deliver the right kind of products
Develop products and services customized for the poor through innovation
Businesses need to focus on collaboratively designing manufacturing and processes to customize products to meet the needs of the poor
Nestle has rolled out a Women Dairy Development Program in a village in India to provide livelihood for women, improve the economic scenario and secure its supply chain in a fragmented dairy market.61
people live on less than $1.90 a day
1in10 in infrastructure investment is required for inclusive growth in Asia from 2010 to 2020
$8trn
WIDESPREAD DISPLACEMENT
42,000 people per day abandoned their homes due to conflict in 2014
EXTREME POVERTY IN THE WORLD NEED FOR BALANCED GROWTH
UNTAPPED CUSTOMER BASE LOW-COST PRODUCTION
No poverty
50% of global vehicle production capacity will come from developing markets by 2050
20% of the population in developing countries lives below poverty line
18Data and figures collected as part of secondary research conducted by Accenture Strategy
All references and additional details can be found in the full report at www.accenture.com/corporatedisruptors
$ $ $ $ $$ $ $ $ $
Untapped customer base o�ers business potential in terms of demand and low-cost production
Poverty reduction requires e�cient labor use, inclusive growth and access to equal rights
What does this mean for businesses?
Partner with industry players to develop and deliver the right kind of products
Develop products and services customized for the poor through innovation
Businesses need to focus on collaboratively designing manufacturing and processes to customize products to meet the needs of the poor
Nestle has rolled out a Women Dairy Development Program in a village in India to provide livelihood for women, improve the economic scenario and secure its supply chain in a fragmented dairy market.61
people live on less than $1.90 a day
1in10 in infrastructure investment is required for inclusive growth in Asia from 2010 to 2020
$8trn
WIDESPREAD DISPLACEMENT
42,000 people per day abandoned their homes due to conflict in 2014
EXTREME POVERTY IN THE WORLD NEED FOR BALANCED GROWTH
UNTAPPED CUSTOMER BASE LOW-COST PRODUCTION
No poverty
50% of global vehicle production capacity will come from developing markets by 2050
20% of the population in developing countries lives below poverty line
Malnutrition and food security are the biggest challenges to meeting the goal of Zero Hunger
Develop and make accessible high-nutrition food items
Partner to set up a robust distribution channel
Develop and roll out farming practices that improve productivity
Businesses may need to focus on and invest in research and distribution infrastructure and develop global and local-level partnerships for scale and reach
Unilever has ensured that more than 20% of its total food and beverage (sales by volume) products have a significant content per serving of the five key micronutrients implicated in undernutrition.62
people across the world are undernourished increase in output is required by 2050 to feed the world’s population
70%
$62.9 bnPotential market size of organic fruits and vegetables by 2020
UNDERNOURISHMENT AGRICULTURAL OUTPUT
24% up to 40% Food loss that can be avoided in developing countries through an adequate distribution network
Zero hunger
795mn
What does this mean for businesses?
19Data and figures collected as part of secondary research conducted by Accenture Strategy All references and additional details can be found in the full report at www.accenture.com/corporatedisruptors
Enormous value creation potential by providing quality, a�ordable and easily accessible healthcare.
Access to primary healthcare and changing demographics are driving the global health and well-being development agenda
What does this mean for businesses?
$34 bn
Projected global telemedicine market by the end of 2020
$87.7 bn
Base-of-the-pyramid healthcare opportunity
8.9 mn
Potential access to skilled professionals across 107 countries
Businesses may need to invest in state-of-the-art infrastructure, identify the right partners and develop innovative operating models to realize this value
GlaxoSmithKline is re-investing 20% of its profits in the Least Developed Countries (LDCs) to develop the healthcare infrastructure by training frontline health workers.63
of 1.8 bn youth aged 10 to 24 live in developing economies today
89%of the world's aging population (over 60) will live in developed countries by 2050
80%
CHILD MORTALITY
43 deaths per 1,000 births
(SDG target: 25)
GROWING YOUTH BULGE AGEING POPULATION
MATERNAL HEALTH
210 deaths per 100,000 births
(SDG target: 70)
Good health and well-being
20Data and figures collected as part of secondary research conducted by Accenture Strategy
All references and additional details can be found in the full report at www.accenture.com/corporatedisruptors
Enormous value creation potential by providing quality, a�ordable and easily accessible healthcare.
Access to primary healthcare and changing demographics are driving the global health and well-being development agenda
What does this mean for businesses?
$34 bn
Projected global telemedicine market by the end of 2020
$87.7 bn
Base-of-the-pyramid healthcare opportunity
8.9 mn
Potential access to skilled professionals across 107 countries
Businesses may need to invest in state-of-the-art infrastructure, identify the right partners and develop innovative operating models to realize this value
GlaxoSmithKline is re-investing 20% of its profits in the Least Developed Countries (LDCs) to develop the healthcare infrastructure by training frontline health workers.63
of 1.8 bn youth aged 10 to 24 live in developing economies today
89%of the world's aging population (over 60) will live in developed countries by 2050
80%
CHILD MORTALITY
43 deaths per 1,000 births
(SDG target: 25)
GROWING YOUTH BULGE AGEING POPULATION
MATERNAL HEALTH
210 deaths per 100,000 births
(SDG target: 70)
Good health and well-beingAccess to education and financing is needed to bridge the skill and education gap
What does this mean for businesses?
Businesses can build human capital through sustained sourcing of an educated workforce and enhance brand image through education initiatives
Econet Wireless Group has leveraged its competency in mobile technology (mEducation platforms) to make commercial investments in education through its Eco-school to improve access to educational content.64
children of primary school age do not attend school
57mnfinancing gap for basic and lower education in Asia, Africa and Latin America
$38bn
SKILL GAP
63% CEOs are concerned about availability of key skills
$70 bn 30% $7 bn
ACCESS TO EDUCATION FINANCING GAP
Quality education
The market size of mobile education by 2020
CEOs who feel that talent constrains them from pursuing
market opportunities
Global financing gap that can be addressed to meet
financial literacy needs
21Data and figures collected as part of secondary research conducted by Accenture Strategy All references and additional details can be found in the full report at www.accenture.com/corporatedisruptors
Gender-diverse companies are likely to benefit through:
Increasing need to drive gender participation and contribution in education and workforce
What does this mean for businesses?
Businesses may need to develop an enabling ecosystem for women and provide them with technology access and skill development
YES Bank’s LEAP program—which is aimed at providing financial services like credit, saving and micro insurance to women—has been in contact with about 40,000 Self Help Groups (SHGs) as of March 2014.65
Participation rates for women in universities in India and China
42-48%Women are likely to spend 4.5 more years in retirement than men
ONLY
4.8% CEOs of Global Fortune 500 companies are women
Gender equality
Develop financial products that suit women’s needs
MARKET SHARE
45% more likely to witness market share growth
MARKET SIZE
70% more likely to successfully capture new markets
EQUITY
Likely to achieve 53% higher returns on equity
4.5 years
Promote skill development and technology access for empowerment
Create an employee value proposition to achieve diversity goals
22Data and figures collected as part of secondary research conducted by Accenture Strategy
All references and additional details can be found in the full report at www.accenture.com/corporatedisruptors
Gender-diverse companies are likely to benefit through:
Increasing need to drive gender participation and contribution in education and workforce
What does this mean for businesses?
Businesses may need to develop an enabling ecosystem for women and provide them with technology access and skill development
YES Bank’s LEAP program—which is aimed at providing financial services like credit, saving and micro insurance to women—has been in contact with about 40,000 Self Help Groups (SHGs) as of March 2014.65
Participation rates for women in universities in India and China
42-48%Women are likely to spend 4.5 more years in retirement than men
ONLY
4.8% CEOs of Global Fortune 500 companies are women
Gender equality
Develop financial products that suit women’s needs
MARKET SHARE
45% more likely to witness market share growth
MARKET SIZE
70% more likely to successfully capture new markets
EQUITY
Likely to achieve 53% higher returns on equity
4.5 years
Promote skill development and technology access for empowerment
Create an employee value proposition to achieve diversity goals
Water protection measures can future-proof operations and generate attractive returns
Lack of clean water and sanitation facilities have a significant impact on global health
What does this mean for businesses?
Businesses must focus on and invest in developing clean and e�cient water and sanitation infrastructure leveraging digital technologies and the knowledge of NGOs and governments
Coca-Cola's RAIN initiative aims to enhance water access to 2 million people in Africa. The company has committed $30 million over 6 years and provides clean drinking water access to more than 1 million people. 2 billion litres is replenished annually, thus reducing risk and building trust.66
lack access to clean drinking water
780mnpeople do not have access to adequate sanitation
2.5bn
IMPACT ON HEALTH
6-8 mn people die annually from disasters and spread of water-related diseases
ACCESS TO DRINKING WATER IMPACT ON CLEANLINESS
Increase productivity through reduced disease incidence and higher morale
Clean water and sanitation
Minimize seepage and replenish water through innovation in operations
Develop new products and services for better access
ECONOMIC VALUE ADDED SECURITY OF SUPPLYCompanies must address a potential 50% increase in water withdrawal in developing countries by 2025
$1 spent on water and sanitation generates $4 in increased economic activity
23Data and figures collected as part of secondary research conducted by Accenture Strategy All references and additional details can be found in the full report at www.accenture.com/corporatedisruptors
$
Increased demand for clean energy provides new revenue and cost-saving opportunities
Growing pressure to curtail emissions is driving e�orts in renewable energy development, energy e�ciency and distributed power
What does this mean for businesses?
Businesses need to develop partnerships and invest in setting up clean, decentralized energy solutions with the help of digital solutions to help scale these solutions
China’s Longyuan Power has helped setup the country’s first micro grid with a total installed capacity of 13.4 megawatts (Solar PV). It will provide clean energy power to more than 7,000 households and 20,000 local residents.67
increase in installed capacity in the past decade
7.7times
DISTRIBUTED POWER
$150 bn in capital investments in decentralized power installations in 2012
RENEWABLE ENERGY
Streamline processes and operations to improve e�ciencies
A�ordable and clean energy
Develop clean energy solutions such as renewables and mini grids
Over $131 bn in investments in developing countries in 2014
RENEWABLE ENERGY
DISTRIBUTED GENERATION
$206 bn in investments in decentralized power installations by 2020
Invest in and partner to drive green growth
24Data and figures collected as part of secondary research conducted by Accenture Strategy
All references and additional details can be found in the full report at www.accenture.com/corporatedisruptors
$
Increased demand for clean energy provides new revenue and cost-saving opportunities
Growing pressure to curtail emissions is driving e�orts in renewable energy development, energy e�ciency and distributed power
What does this mean for businesses?
Businesses need to develop partnerships and invest in setting up clean, decentralized energy solutions with the help of digital solutions to help scale these solutions
China’s Longyuan Power has helped setup the country’s first micro grid with a total installed capacity of 13.4 megawatts (Solar PV). It will provide clean energy power to more than 7,000 households and 20,000 local residents.67
increase in installed capacity in the past decade
7.7times
DISTRIBUTED POWER
$150 bn in capital investments in decentralized power installations in 2012
RENEWABLE ENERGY
Streamline processes and operations to improve e�ciencies
A�ordable and clean energy
Develop clean energy solutions such as renewables and mini grids
Over $131 bn in investments in developing countries in 2014
RENEWABLE ENERGY
DISTRIBUTED GENERATION
$206 bn in investments in decentralized power installations by 2020
Invest in and partner to drive green growth
MICRO GRIDS
$19.9 bn in revenue by 2020 globally from micro grids
FINANCIAL SERVICES
2.5 bn people are currently financially excluded and can be targeted
Infrastructure and technology can bridge the gap between the need for and availability of employment
Provide basic services, infrastructure and opportunities to the base of the pyramid to create a new customer base
Set up small businesses and a conducive environment near labor hubs to drive employment
Businesses need to develop the physical and financial infrastructure and provide basic services in partnership with local stakeholders to set up business hubs to employ more people
Barclays, CARE International UK and Plan UK have joined forces to tackle the issue of financial inclusion by taking a savings-led, rather than credit-led approach to microfinance through their initiative ‘Banking on Change.’68
skilled people may potentially not have job opportunities every year till 2018
new jobs emerged for every job lost due to technology
2.4UNUSED SKILLSET TECHNOLOGY
Decent work and economic growth
2.6mn
What does this mean for businesses?Some business opportunities can add revenue streams while driving socio-economic development
25Data and figures collected as part of secondary research conducted by Accenture Strategy All references and additional details can be found in the full report at www.accenture.com/corporatedisruptors
Resilient infrastructure and inclusive industrialization are needed to support rapid growth in urbanization
Businesses need to develop resilient and sustainable products, integrate layers across products and services and collaborate with industry and cross-industry players to drive infrastructure improvements
Gujarat International Finance Tec-City (GIFT) the first of its kind financial and IT services hub in India was developed in partnership with IL&FS, a leading infrastructure provider. This city will provide close to 500,000 direct and indirect jobs in India.69
people will be living in urban areas in Asia by 2050 Small and medium enterprises account for 50% to 60% of total global employment
50-60%
TECHNOLOGY AS A CATALYST
80% of CEOs feel that innovation drives e�ciency
NEED FOR RESILIENCE INCLUSIVE INDUSTRIALIZATION
Industry, innovation and infrastructure
3.3bn
What does this mean for businesses?Technology can help companies capitalize on the market opportunity presented by the infrastructure sector
Develop smart products for resilience and inclusive growth
Use technology to drive innovation to connect infrastructure products
Invest in products and services for inclusive and resilient growth
INFRASTRUCTURE TECHNOLOGY
15% performance improvement in buildings can be achieved through intelligent commissioning
$4 trn in infrastructure investment is needed globally as of 2014
26Data and figures collected as part of secondary research conducted by Accenture Strategy
All references and additional details can be found in the full report at www.accenture.com/corporatedisruptors
Resilient infrastructure and inclusive industrialization are needed to support rapid growth in urbanization
Businesses need to develop resilient and sustainable products, integrate layers across products and services and collaborate with industry and cross-industry players to drive infrastructure improvements
Gujarat International Finance Tec-City (GIFT) the first of its kind financial and IT services hub in India was developed in partnership with IL&FS, a leading infrastructure provider. This city will provide close to 500,000 direct and indirect jobs in India.69
people will be living in urban areas in Asia by 2050 Small and medium enterprises account for 50% to 60% of total global employment
50-60%
TECHNOLOGY AS A CATALYST
80% of CEOs feel that innovation drives e�ciency
NEED FOR RESILIENCE INCLUSIVE INDUSTRIALIZATION
Industry, innovation and infrastructure
3.3bn
What does this mean for businesses?Technology can help companies capitalize on the market opportunity presented by the infrastructure sector
Develop smart products for resilience and inclusive growth
Use technology to drive innovation to connect infrastructure products
Invest in products and services for inclusive and resilient growth
INFRASTRUCTURE TECHNOLOGY
15% performance improvement in buildings can be achieved through intelligent commissioning
$4 trn in infrastructure investment is needed globally as of 2014
GROWTHThe microfinance market will grow
10-15% by 2016
OPPORTUNITY SIZE
Asia’s 2.86 bn BOP consumer base has an aggregate income of $3.47 trn
Income inequality and gender discrimination erodes the quality of life and impedes economic growth
What does this mean for businesses?
Develop programs and o�er services to empower the poor
through Self Help Groups (SHGs)
Develop skills and promote technology access to improve
BOP livelihood
Enact a diversity agenda to build a productive and
balanced workforce
Businesses need to create an enabling environment for the underprivileged and leverage improved processes and higher productivity to develop products that suit their needs
Annapurna Microfinance, which was designed to form and promote self-help groups, seeks to empower 250,000 poor women and households by 2015 to enhance their economic security.70
of the wealthiest people own the equivalent of the bottom 50% of the global population
Globally women typically earn 24% less than men, with majority of jobs being informal or unprotected
24%
WEALTH GAP GENDER DISPARITY IN INCOME
Reduced inequalities
85
Base of the pyramid (BOP) presents a huge market opportunity for existing and new products
27Data and figures collected as part of secondary research conducted by Accenture Strategy All references and additional details can be found in the full report at www.accenture.com/corporatedisruptors
The need to sustainably support rapid urbanization is creating new market opportunities
Strong and rapid urbanization requires sustainable technology transfer through innovative financial instruments and mechanisms
What does this mean for businesses?
Businesses need to develop capabilities for clean energy and smart devices, as well as products that leverage the knowledge of cross-sector players
Telefonica has assisted the city of Valencia in fulfilling its target of becoming a smart and sustainable city through a single connectivity platform with 350 sensors to provide real time data on tra�c management and help in making prompt real time decision making.71
of the world’s population will be city dwellers by 2030
60%of the planet's resources are consumed by only 3% of Earth's area
FINANCING GAP
$174.4 bn global investment in technologies is required to support sustainable cities
URBANIZATION WAVE NEED FOR RESOURCE EFFICIENCY
Leverage technology to trace resource use and enhance connectivity
Sustainable cities and communities
Develop sustainable products and services
CONNECTED DEVICES
2.7 bn connected devices will be in use in smart cities by 2017
ENERGY MANAGEMENT SYSTEMS
Market to grow from $7.7 bn in 2013 to $24.2 bn in 2020
ELECTRIC VEHICLES
Market will grow from $83.5 bn in 2012 to $271.7 bn in 2019
60% to 80%
28Data and figures collected as part of secondary research conducted by Accenture Strategy
All references and additional details can be found in the full report at www.accenture.com/corporatedisruptors
The need to sustainably support rapid urbanization is creating new market opportunities
Strong and rapid urbanization requires sustainable technology transfer through innovative financial instruments and mechanisms
What does this mean for businesses?
Businesses need to develop capabilities for clean energy and smart devices, as well as products that leverage the knowledge of cross-sector players
Telefonica has assisted the city of Valencia in fulfilling its target of becoming a smart and sustainable city through a single connectivity platform with 350 sensors to provide real time data on tra�c management and help in making prompt real time decision making.71
of the world’s population will be city dwellers by 2030
60%of the planet's resources are consumed by only 3% of Earth's area
FINANCING GAP
$174.4 bn global investment in technologies is required to support sustainable cities
URBANIZATION WAVE NEED FOR RESOURCE EFFICIENCY
Leverage technology to trace resource use and enhance connectivity
Sustainable cities and communities
Develop sustainable products and services
CONNECTED DEVICES
2.7 bn connected devices will be in use in smart cities by 2017
ENERGY MANAGEMENT SYSTEMS
Market to grow from $7.7 bn in 2013 to $24.2 bn in 2020
ELECTRIC VEHICLES
Market will grow from $83.5 bn in 2012 to $271.7 bn in 2019
60% to 80%
Increasing relevance of resource e�ciency is reducing costs and creating new revenue opportunities
Increasing demand for resources is making extraction prices more volatile and putting unsustainable stress on natural ecosystems
What does this mean for businesses?
Businesses need to develop processes and capabilities for reuse and recovery and establish supply chain traceability to identify waste-recovery opportunities
H&M partnered with I:Collect to setup a recovery and collection system for used clothes in 48 countries. Clothes are resold, transformed or recycled depending on quality.72
Earth’s worth of resources are being consumed by the global population
1.6 timesincrease in commodity price index for 1% increase in GDP
STRESSED ECOSYSTEMS
More than 60% of Earth’s ecosystems are seriously degraded
UNSUSTAINABLE DEMAND HIGH EXTRACTION PRICE
Develop modular products and circular business models to reduce ownership costs
Create partnerships and linkages to enable collection mechanisms and recovery
Responsible consumption and production
Leverage technology and investments to minimize waste and use of virgin material
BIODEGRADABLE PLASTICS
$2 bn to $3.4 bn growth in market value between 2015 and 2020
AUTOMOTIVE REMANUFACTURING
$139.8 bn market size by 2020
CIRCULAR OPPORTUNITY IN TEXTILES
$59.5 bn to $70.5 bn cost savings per year in apparel industry from shift to a circular economy
1.5%
29Data and figures collected as part of secondary research conducted by Accenture Strategy All references and additional details can be found in the full report at www.accenture.com/corporatedisruptors
Accelerated climate action presents an opportunity for clean energy solutions
Global climate action must be scaled to mitigate the increasing frequency and impacts of climate-related events
What does this mean for businesses?
Businesses must focus on and invest in developing clean and e�cient energy solutions in partnership with cross-industry players
SaskPower has developed the world’s first and largest commercial-scale CCS project with capabilities to lower SO2 emissions by almost 100% and CO2 by 90%.73
Agreement by 195 nations at COP21 to keep global temperature rise below 2 degrees Celsius
2 degrees
IMPACT OF COLLABORATION
35% reduction in carbon emissions from 1990 levels through collective e�orts
GLOBAL TEMPERATURE
Launch new products and diversify revenue streams
Climate action
Reduce resource dependence and minimize emissions
ELECTRIC VEHICLES
20 mn are estimated to be on the road by 2020
RENEWABLE ENERGY
17% surge in investments by 2014 to $270 bn
30Data and figures collected as part of secondary research conducted by Accenture Strategy
All references and additional details can be found in the full report at www.accenture.com/corporatedisruptors
Accelerated climate action presents an opportunity for clean energy solutions
Global climate action must be scaled to mitigate the increasing frequency and impacts of climate-related events
What does this mean for businesses?
Businesses must focus on and invest in developing clean and e�cient energy solutions in partnership with cross-industry players
SaskPower has developed the world’s first and largest commercial-scale CCS project with capabilities to lower SO2 emissions by almost 100% and CO2 by 90%.73
Agreement by 195 nations at COP21 to keep global temperature rise below 2 degrees Celsius
2 degrees
IMPACT OF COLLABORATION
35% reduction in carbon emissions from 1990 levels through collective e�orts
GLOBAL TEMPERATURE
Launch new products and diversify revenue streams
Climate action
Reduce resource dependence and minimize emissions
ELECTRIC VEHICLES
20 mn are estimated to be on the road by 2020
RENEWABLE ENERGY
17% surge in investments by 2014 to $270 bn
Depletion of ecosystems has created attractive business opportunities for sustainable fishing
Increasing risk to marine ecosystems has made the need for sustainable fishing more urgent
What does this mean for businesses?
Businesses may need to develop transparent and traceable supply chain as well as a sustainable sourcing infrastructure
Yooji has launched the first ever baby food to bear the Marine Stewardship Council (MSC) ecolabel. The new frozen protein are portions made of 100% MSC-certified flaked cod.74
people depend on fish as a source of protein
3bnPotential for stock of all fished species to collapse by 2048
SUSTAINABLE FISHING
Eco-labeled fishery product increased
147% between 2010 and 2014
MAJOR SOURCE OF FOOD RISK OF DEPLETION
Leverage technology to make sourcing sustainable
Life below water
Unlock potential revenue through labeling and charging premium prices
MARKET SIZE
Eco-labeled seafood currently is a $4.8 bn retail market
100%
PROFITABILITY
Potential for fishing sector to boost profits by $51 bn with sustainable fishery policies within 10 years
31Data and figures collected as part of secondary research conducted by Accenture Strategy All references and additional details can be found in the full report at www.accenture.com/corporatedisruptors
Forest management presents new product and market opportunities
Heightened stress on land ecosystems has increased the need for sustainable forest management
What does this mean for businesses?
Businesses need to develop capabilities for maximizing output and recovering value from used products through cross-sector partnerships
FOREST MANAGEMENTPlanted forest areas covers only
7% of the world's total forest area
Set up monitoring and security mechanisms to minimize variability in the ecosystem's social and environmental value
Life on land
Use innovation to minimize waste and maximize resource e�ciency and reuse
CERTIFIED WOOD
Certified wood products globally carry a 15% to 25% price premium
BIOFUELS
Second-generation biofuels have a $23.9 bn global market value
TetraPak has developed and sold the world’s first fully renewable high-performance food packaging carton that uses FSC-certified paperboard and plastic derived from natural sugarcane.75
“At risk” species face extinction at 1,000 times the natural rate
hectares of forest was lost worldwide between 2000 and 2010 to meet global growth demand
13mn
STRESSED ECOSYSTEMS INCREASING DEMAND
1,000 times
32Data and figures collected as part of secondary research conducted by Accenture Strategy
All references and additional details can be found in the full report at www.accenture.com/corporatedisruptors
Forest management presents new product and market opportunities
Heightened stress on land ecosystems has increased the need for sustainable forest management
What does this mean for businesses?
Businesses need to develop capabilities for maximizing output and recovering value from used products through cross-sector partnerships
FOREST MANAGEMENTPlanted forest areas covers only
7% of the world's total forest area
Set up monitoring and security mechanisms to minimize variability in the ecosystem's social and environmental value
Life on land
Use innovation to minimize waste and maximize resource e�ciency and reuse
CERTIFIED WOOD
Certified wood products globally carry a 15% to 25% price premium
BIOFUELS
Second-generation biofuels have a $23.9 bn global market value
TetraPak has developed and sold the world’s first fully renewable high-performance food packaging carton that uses FSC-certified paperboard and plastic derived from natural sugarcane.75
“At risk” species face extinction at 1,000 times the natural rate
hectares of forest was lost worldwide between 2000 and 2010 to meet global growth demand
13mn
STRESSED ECOSYSTEMS INCREASING DEMAND
1,000 times
Rise in conflicts around the world is causing forced displacement and hampering socio-economic development
What does this mean for businesses?
Businesses need to focus on reinstating infrastructure in conflicted regions, leverage digital technologies to disseminate emergency and awareness information and develop partnerships for setting codes of ethics
DISPLACEMENT
59.5 mn people have been forcibly displaced due to various conflicts in 2014
Peace, justice and strong institutions
Help conflicted regions recuperate through infrastructure services and low-cost products
Employ digital vigilance and resilience to protect vulnerable customers
Create partnerships for responsible and ethical sourcing
Safaricom worked closely with various political parties and content service providers in Kenya in 2013 to set guidelines and a systematic process to ensure that inflammatory messages were not spread through bulk messaging services to help address election-related violence and riots.76
The number of fatalities due to conflicts increased by a factor of 3.2 between 2008 and 2014
ARMED CONFLICTS
3.2x
33Data and figures collected as part of secondary research conducted by Accenture Strategy All references and additional details can be found in the full report at www.accenture.com/corporatedisruptors
Innovative business models generate attractive returns while meeting social and environmental goals
Business-centric, multi-stakeholder partnerships are needed to drive investments and technology transfer to meet Sustainable Development Goals
What does this mean for businesses?
Businesses should set up local production facilities aligned to sustainable development, leveraging digital technologies in partnership with industry and civil bodies
BUSINESS-CENTRIC PARTNERSHIPS
GeSI represents 30 companies in ICT collaborating to meet emissions, productivity and social development goals
Create partnerships to leverage public sector funds and drive alternative business models
Partnerships for the goals
Enable low cost production and connectivity to remote areas to spur the growth of developing countries
International Air Transport Association (IATA) Alternative Fuels Program is working with 260 member airlines to switch to sustainable alternative fuels and has tested 50% blend of sustainable bio-based jet fuel in over 1,700 passenger flights across 21 member airlines.77
per year is current gap in investments identified to meet SDG targets
GAP IN INVESTMENT FOR SDGS
$3.1trn
34Data and figures collected as part of secondary research conducted by Accenture Strategy
All references and additional details can be found in the full report at www.accenture.com/corporatedisruptors
Innovative business models generate attractive returns while meeting social and environmental goals
Business-centric, multi-stakeholder partnerships are needed to drive investments and technology transfer to meet Sustainable Development Goals
What does this mean for businesses?
Businesses should set up local production facilities aligned to sustainable development, leveraging digital technologies in partnership with industry and civil bodies
BUSINESS-CENTRIC PARTNERSHIPS
GeSI represents 30 companies in ICT collaborating to meet emissions, productivity and social development goals
Create partnerships to leverage public sector funds and drive alternative business models
Partnerships for the goals
Enable low cost production and connectivity to remote areas to spur the growth of developing countries
International Air Transport Association (IATA) Alternative Fuels Program is working with 260 member airlines to switch to sustainable alternative fuels and has tested 50% blend of sustainable bio-based jet fuel in over 1,700 passenger flights across 21 member airlines.77
per year is current gap in investments identified to meet SDG targets
GAP IN INVESTMENT FOR SDGS
$3.1trn
35
References1 United Nations Development Programme, “Summary:
Human Development Report 2013”, 2013, http://hdr.undp.org/sites/default/files/hdr2013_en_summary.pdf
2 Population Division, Department of Economic and Social Affairs, United Nations, “Population Facts No. 2014/3”, August 2014, http://www.un.org/en/development/desa/population/publications/pdf/popfacts/PopFacts_2014-3.pdf
3 Population Division, Department of Economic and Social Affairs, United Nations, “World Population Prospects: The 2015 Revision”, 2015, http://esa.un.org/unpd/wpp/DataQuery/ (Raw data acquired via website)
4 United Nations Children’s Fund, “The State of World’s Children 2012: Children in an Urban World”, February 2012, http://www.unicef.org/sowc2012/urbanmap/ (Raw data acquired via website)
5 Reuters, “The Swelling Middle”, 2012, http://www.reuters.com/middle-class-infographic, accessed January 7, 2016
6 Population Division, Department of Economic and Social Affairs, United Nations, “World Population Prospects: The 2015 Revision”, 2015, http://esa.un.org/unpd/wpp/publications/files/key_findings_wpp_2015.pdf
7 Julika Erfurt, Athena Peppes and Mark Purdy, Institute for High Performance, Accenture, “The Seven Myths of Population Aging: How Companies and Governments Can Turn the “Silver Economy” into an Advantage”, February 2012, https://ec.europa.eu/research/innovation-union/pdf/active-healthy-ageing/accenture.pdf
8 Population Division, Department of Economic and Social Affairs, United Nations, “World Population Prospects: The 2015 Revision”, 2015, http://esa.un.org/unpd/wpp/publications/files/key_findings_wpp_2015.pdf
9 Ibid
10 Ibid
11 Ibid
12 Ibid
13 Ibid
14 Ibid
15 Accenture and Oracle, “The Future of HR: Five Technology Imperatives”, 2014, https://www.accenture.com/in-en/~/media/Accenture/Conversion-Assets/DotCom/Documents/Global/PDF/Digital_1/Accenture-Oracle-HCM-eBook-Future-of-HR-Five-Technology-Imperatives.pdf
16 United Nations Global Compact, Accenture and HAVAS Media, “The Consumer Study: From Marketing to Mattering”, June 2014, https://www.accenture.com/t20150523T022414__w__/us-en/_acnmedia/Accenture/Conversion-Assets/DotCom/Documents/Global/PDF/Dualpub_1/Accenture-Consumer-Study-Marketing-Mattering.pdf
17 Ibid
18 Population Division, Department of Economic and Social Affairs, United Nations, “World Population Prospects: The 2015 Revision”, 2015, http://esa.un.org/unpd/wpp/Download/Probabilistic/Population/ (Raw data acquired via website)
19 TRACEONE, “TRACE ONE’s survey links supply chain transparency with consumer buying behavior”, January 2015, http://www.traceone.com/en/news/trace-ones-survey-links-supply-chain-transparency-with-consumer-buying-behavior-3-2-2-2/, accessed January 7, 2016
20 United Nations Global Compact and Accenture, “The UN Global Compact-Accenture CEO Study on Sustainability 2013: Architects of a Better World”, September 2013, https://acnprod.accenture.com/~/media/Accenture/Conversion-Assets/DotCom/Documents/Global/PDF/Strategy_5/Accenture-UN-Global-Compact-Acn-CEO-Study-Sustainability-2013.pdf
21 Edelman, “Executive Summary: 2015 Edelman Trust Barometer”, 2015, http://www.edelman.com/insights/intellectual-property/2015-edelman-trust-barometer/trust-and-innovation-edelman-trust-barometer/executive-summary/, accessed January 7, 2016
22 Global e-Sustainability Initiative and Accenture, “#SMARTer2030: ICT Solutions for 21st Century Challenges”, 2015, http://smarter2030.gesi.org/downloads/Full_report.pdf
23 Ibid
24 Ibid
25 David Sovie and John Curran, Accenture, “2015 Accenture Digital Consumer Survey: Engaging the Digital Consumer in the New Connected World”, 2015, https://www.accenture.com/t20150523T033024__w__/us-en/_acnmedia/Accenture/Conversion-Assets/DotCom/Documents/Global/PDF/Dualpub_7/Accenture-Engaging-Digital-Consumer-New-Connected-World.pdf
26 Truste, “2014 UK Consumer Data Privacy Survey: Consumer Privacy Edition”, 2014, https://www.truste.com/resources/privacy-research/uk-consumer-confidence-index-2014/, accessed January 7, 2016
27 Truste, “2015 US Consumer Confidence Index”, 2015, https://www.truste.com/resources/privacy-research/us-consumer-confidence-index-2015/, accessed January 7, 2016
28 Peter Lacy, Justin Keeble and Robert McNamara, Accenture, “Circular Advantage: Innovative Business Models and Technologies to Create Value in a World without Limits to Growth”, 2014, https://thecirculars.org/documents/Accenture%20Circular%20Advantage%20Web%20Single.pdf
29 Ibid
30 Ibid
31 The Conference Board, “Total Economy Database – Key Findings”, January 2014, http://www.conference-board.org/data/economydatabase/, accessed January 7, 2016
32 The World Bank, “World Bank Commodity Price Data”, December 2014, http://databullet.in/15433/world-bank-commodity-price-data-pink-sheet-december-2014, accessed January 7, 2016
33 IndexMundi, “Commodity Prices”, http://www.indexmundi.com/commodities, accessed January 7, 2016
34 Ibid
35 Sustainable Europe Research Institute and Vienna University of Economics and Business, “Global Material Flow Database”, 2014, http://www.materialflows.net/, accessed January 7, 2016
36 World Bank, “World Bank DataBank”, 2014, http://data.worldbank.org/indicator/NY.GDP.PCAP.CD, accessed January 7, 2016 (Raw data acquired via website)
37 Global e-Sustainability Initiative and Accenture, “#SMARTer2030: ICT Solutions for 21st Century Challenges”, 2015, http://smarter2030.gesi.org/downloads/Full_report.pdf
38 Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change, IPCC, “Summary for Policymakers. In: Climate Change 2013: The Physical Science Basis”, 2013, http://www.climatechange2013.org/images/report/WG1AR5_SPM_FINAL.pdf
39 United Nations, “Secretary-General’s remarks at Special Event on Achieving the Millennium Development Goals”, September 25, 2013, http://www.un.org/sg/statements/index.asp?nid=7125, accessed January 7, 2016 (Excerpt from speech)
40 George C. Lodge, Harvard Business School, “Using Big Business to Fight Poverty”, http://hbswk.hbs.edu/item/using-big-business-to-fight-poverty, accessed January 7, 2016
41 World Food Programme, “Here’s to Ten Years of WFP and TNT!”, 2012, https://www.wfp.org/blog/blog/celebrating-ten-years-wfp-and-tnt, accessed January 7, 2016
42 Unilever, “Lifebuoy Way of Life: Social Mission Report 2010-2012”, https://www.unilever.com/Images/lifebuoy-way-of-life_2010-12-oct12_tcm13-355913_tcm244-409755_en.pdf
43 United Nations Educational, Scientific, and Cultural Organization, United Nations Children’s Fund, United Nations Global Compact, United Nations Special Envoy for Global Education, “The Smartest Investment: A Framework For Business Engagement In Education”, 2013, http://businessbackseducation.org/wp-content/uploads/2014/05/Business-Backs-Education-Framework.pdf
44 Care.com, “Company Overview, http://www.care.com/company-overview, accessed January 7, 2016
45 SABMiller, “Using less water to brew our beer”, 2014, http://www.sabmiller.com/home/stories/using-less-water-to-brew-our-beer, accessed January 7, 2016
46 Total, “A New Energy Future with Solar Energy”, http://www.total.com/sites/default/files/atoms/file/total-solar-power-investing-technology-bright-future, accessed January 7, 2016
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49 The Economic Times, July 25, 2012, “ITC’s e-choupal boosting company’s FMCG business”, http://articles.economictimes.indiatimes.com/2012-07-25/news/32848625_1_fmcg-business-e-choupal-network-fiama-di-wills, accessed January 7, 2016
50 E.ON, “Potential in integrated energy distribution”, http://www.eon.com/en/sustainability/environment/technology-development/infrastructure.html, accessed January 7, 2016
51 Michelin, “Michelin’s Fleet Solutions”, http://www.michelintruck.com/services-and-programs/michelin-fleet-solutions/, accessed January 7, 2016
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Contact the authorJessica Longjessica.l.long@accenture.com
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Acknowledgements This report was developed in collaboration with the World Economic Forum’s Young Global Leaders (YGL) Community and an output of the YGL Sustainable Development Goals initiative. We would like to thank the core working group of the initiative, specifically Brendan Cox, Mariéme Jamme, John McArthur, Emily Ross, Bruno Sánchez-Andrade Nuño, Joanna Sparber and Lisa Witter.
The team would like to thank those who contributed case studies, reviews and guidance, including Daniella Ballou-Aares, Jen Ace, Aneri Amin, Michael Argosh, Zubaida Bai, Analisa Balares, Brad Brekke, Charlotte Deal, Nishan Degnarain, John Dutton, Anna Easton, Jillian Fisher, Timothy Fort, Kate Garvey, Elizabeth Gore, Celine Herweijer, Catherine Howarth, Sony Kapoor, Justin Keeble, Peter Lacy, Sheila Marcelo, Rosy Mondardini, James Mwangi, Valeria Orozco, Avra Siegel, Shamina Singh, Natasha Sunderji, Renee-Maria Tremblay and Mark Vlasic.
Several people were critical to the creation and publication of this report, including Graham Girling, Palak Kapoor, Sally Lavelle, Winsley Peter, Sundeep Singh, Abhishek Srivastava, Liz Steel and Bernie Thiel.
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