future-fit business benchmark: who, why, what, how, when
TRANSCRIPT
ISSP Conference
November 14, 2014
[email protected] sustainabilityadvantage.com
FUTURE-FIT BUSINESS
BENCHMARK:
Who, Why, What, How, When
WHO
http://futurefitbusiness.org/the-team/partners/
How would we recognize a truly sustainable,
future-fit business if we saw one?
How much is enough?
“Mirror, mirror …”
WHY
GLOBAL 100Companies with market cap > $2B
12 KPIs
1. Energy productivity
2. Carbon productivity
3. Water productivity
4. Waste productivity
5. % Taxes paid
6. % of Women senior execs
7. Clean capitalism pay link
8. CEO-to-Average-Worker Pay
9. Safety performance
10. Employee turnover
11. Innovation capacity
12. Pension fund status
Top 10 in World
1. Westpac Banking (Banking)
2. Biogen Idec (Pharmaceuticals.)
3. Outotec (Capital Goods)
4. Statoil (Energy)
5. Dassault Systems (Software)
6. Nestle Oil (Energy)
7. Novo Dordisk (Pharmaceuticals)
8. Adidas (Consumer Goods)
9. Unicore (Materials)
10. Schneider Electric (Cap. Gds.)
“The Global 100,” Corporate Knights magazine, Winter 2014.
WHAT
If it were to operate forever, it would not only do no harm,
it would do well by doing some net good.
The business contributes to the
possibility that the business, society, and
the environment will flourish
on our finite planet, forever
A sustainable future-fit business
creates net positive environmental,
social, and economic value
throughout its value chain
FOURTH BENCHMARK
X1
Baseline
year
Other companies
Performance
Today
2
Company
Goal
3
4
Fu
ture
-Fit B
usin
ess
Ben
ch
mark
Company X
HOW
Determine the Design Constraints
for a future-fit business model, based on
science-based System Conditions
that must be honored by any actor
in a sustainable human society
nested in a sustainable environment
Define future-fit Goals based on the Design Constraints
Agree on best future-fit KPIs by which to measure
company progress toward the Goals
8 SYSTEM CONDITIONS
Environment resilience must not be
systematically degraded by...• increasing concentrations of substances
extracted from the earth’s crust
• increasing concentrations of substances
produced by society
• over-harvesting or physical encroachment
into areas critical for natural processes
Society resilience must not be degraded through the erosion of
trust among people and institutions by undermining people’s…
• Health: physical, emotional, and emotional health; safety
• Influence: participation in decision making; having a voice; democratic rights
• Competence: learning; adaptability, personal growth; ability to knowledge
• Equity: impartial treatment; fairness; justice; respect; diversity
• Meaning: sense of purpose; caring; opportunity to make a difference
8 COMPANY DESIGN CONSTRAINTS
Company does not contribute to ...• a buildup in nature of
substances extracted from the earth’s crust
• a buildup in nature of
human-made, synthetic substances
• over-harvesting or physical encroachment
into areas critical for natural processes
Company does not contribute to conditions that undermine people’s …
• Health: physical, emotional, and emotional health; safety
• Influence: participation in decision making; having a voice; democratic rights
• Competence: learning; adaptability, personal growth; ability to knowledge
• Equity: impartial treatment; fairness; justice; respect; diversity
• Meaning: sense of purpose; caring; opportunity to make a difference
HOW
Determine the Design Constraints
for a future-fit business model, based on
science-based System Conditions
that must be honored by any actor
in a sustainable human society
nested in a sustainable environment
Define future-fit Goals based on the Design Constraints
Agree on best future-fit KPIs by which to measure
company progress toward the Goals
11 Environmental Goals• All clean, renewable energy
• All fair, sustainable water use
• All sustainable materials
• All products & packaging repurposed
• No emissions of naturally scarce substances (2)
• No emissions of human-made synthetics (2)
• No GHG emissions (2)
• No impact on biodiversity
17 Social Goals• Employee health and safety fostered
• All employees paid at least a living wage
• Equal pay for equal work
• No discrimination against employees
• Development for all employees
• No employee human rights violations
• Community health and safety fostered
• All statutory taxes paid in jurisdiction
where revenue is recognized
• No harm to others from product use
• No citizen human rights violations
• Customer health and safety fostered
• All systems align with future-fit goals
• Disclosure of all necessary info for KPIs
• No unethical practices
• Transparent on all lobbying
• Transparent on all investments
• All tier one suppliers are future-fit
28 GOALS
HOW
Determine the Design Constraints
for a future-fit business model, based on
science-based System Conditions
that must be honored by any actor
in a sustainable human society
nested in a sustainable environment
Define future-fit Goals based on the Design Constraints
Agree on best future-fit KPIs by which to measure
company progress toward the Goals
WHEN
How would we recognize a truly sustainable,
future-fit business if we saw one?
How much is enough?
“Mirror, mirror …”
WHY
4. What if it is mission impossible?
• New business models?
• New balance sheets?
5. Is it desirable to be
a future-fit business?
• Business case?
• Investor interest?
6. What about other sectors?
• More benchmarks by 2017?
• Critical mass by 2020?
THREE MORE QUESTIONS
4. What if it is mission impossible?
• New business models?
• New balance sheets?
5. Is it desirable to be
a future-fit business?
• Business case?
• Investor interest?
6. What about other sectors?
• More benchmarks by 2017?
• Critical mass by 2020?
THREE MORE QUESTIONS
www.sustainabilityadvantage.com
RESOURCES
ISSP Conference
November 14, 2014
[email protected] sustainabilityadvantage.com
FUTURE-FIT BUSINESS
BENCHMARK:
Who, Why, What, How, When