Sustainable Business - Q2 2021 by Mediaplanet UK&IE

A Mediaplanet campaign focused on

Sustainable Business

“Businesses have an important role to play in building a more sustainable and inclusive future.” John Dutton Head of UpLink, World Economic Forum

Q2 2021 | A promotional supplement distributed on behalf of Mediaplanet, which takes sole responsibility for its content

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“Extended Producer Responsibility for packaging – why we need it.” Sara Wingstrand Ellen MacArthur Foundation

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Shaping a sustainable future from the ground up Headlines are now dominated by net zero commitments and more inclusive supply chains as major companies step up and work towards much needed progress.

usinesses have an important role to play in building a more sustainable and inclusive future. But there are many entrepreneurs without the Fortune 100 budgets that have creative, out of the box solutions. Their ideas are key to shaping the next stage of our future.

WRITTEN BY

John Dutton Head of UpLink, World Economic Forum

The biodiversity crisis For example, with scientists in agreement that a sixth mass extinction is now underway, a worldwide crash in biodiversity is one of the major pressing global issues we face today. Addressing challenges of this magnitude can seem almost impossible – which is why a pipeline for sourcing solutions, and speedily making them a reality, is more crucial than ever before. The soon-to-be-launched mobile game Wildchain, which has been selected through the Forum’s open innovation platform - UpLink, is one Singaporean entrepreneur’s contribution to getting to grips with the biodiversity crisis in a new way. By allowing players to adopt, raise and protect digital animals that are counterparts of real-life ones, Wildchain not only serves to educate, but funnels 100% of any money spent within the game back into real-life conservation efforts. Giving visibility to underrepresented areas It’s time to give visibility to geographies, sectors and communities that have thus far been overlooked and under-represented by traditional accelerator programmes. Young change-makers, social innovators, thematic experts,

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investors and technology all have a role to play. Another game changing solution is from Cubex Global - a digital marketplace which sells unused space in shipping containers. Some 100 million containers cross the ocean basically empty, producing 280 million tonnes of carbon emissions and costing $25 billion a year in lost revenue. This ocean-friendly model for shipping was founded by a young group from Pakistan and flagged during our Ocean Solutions Challenges. Tackling deforestation If we turn to forests, the world loses about 15 billion trees a year, about 10 million hectares, despite global reforestation efforts. But young entrepreneurs have started to make strides to conserve, restore and grow trees. GainForest uses artificial intelligence to try to reverse deforestation. Private stakeholders can pledge money to indigenous communities and forest restoration projects through smart contracts. Instead of felling trees to make room for crops and cattle, the solution encourages local farmers to preserve and restore ecosystems. Crowdsourced collaboration on problems of seemingly insurmountable scale could be game-changing, said UN Deputy Secretary General, Amina Mohammed: “The world has no shortage of creative ideas. However, we often lack the pathways that would enable youth innovation to be scaled up.” Technology can help us call for solutions and entrepreneurs can help us deliver on their ideas to ensure our future is sustainable.

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Project Manager: Emma-Jean Edwards emmajean.edwards@mediaplanet.com Business Development Manager: Gabrielle Dunn Managing Director: Alex Williams Head of Business Development: Ellie McGregor Head of Production: Kirsty Elliott Designer: Thomas Kent Digital Manager: Harvey O’Donnell Paid Media Manager: Jonni Asfaha Production Assistant: Henry Phillips All images supplied by Gettyimages, unless otherwise specified

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Why building sustainability into everything you do is good for business The pandemic has created an opportunity for businesses to refocus, rebuild and become a force for good.

INTERVIEW WITH Natalie Gordon Chief of Staff, Egremont Group

INTERVIEW WITH Hannah Crossley Principal, Egremont Group

WRITTEN BY Tony Greenway

What is a sustainable business? Natalie: ‘Sustainable’ was coined as an environmental term — but it’s broader than that now. So, a sustainable business isn’t one that has a sustainability strategy or considers themselves a ‘green business’. Instead, it’s a business that balances purpose and profit, which means it actively tries to do the best for its customers, its staff, its community and the environment. Hannah: Before it makes any decision, a sustainable business asks what the impact will be on its customers, staff, the community and planet. More companies are realising that their customers and staff care about sustainability and they can’t afford to ignore it anymore. Once, businesses struggled to balance profitability and sustainability. Now they realise they can’t continue to be profitable without being sustainable.

You talk about businesses ‘resetting’. What is that — and how easy is it to do? Natalie: Businesses have a choice. They can choose to do some things differently, and a bit better. Or they can say: ‘You know what? The pandemic has forced us to fundamentally change a number of our practices. So why don’t we look at what else we need to fundamentally change in our operating model — and the impact that can have?’ However, you can’t just tell people to do things differently. You’ve got to bring the workforce and leadership team together. You have to create a culture where the employee voice is heard and where top-down desire meets bottom-up momentum. This creates a framework where teams are trusted and gives them the tools and skills to problem-solve and drive change.

So, what things can companies Has the pandemic had an do to be a force for good? impact on a company’s ability Hannah: You can to build a sustainable culture? update your approach to Remote working and contact via Natalie: Our clients have performance management, had to deal with real building in objectives video conference call has created difficulties over the past that actively focus on a better, more sustainable way year, but in doing so they’ve sustainability. You can make of working for us and our people been forced to look at their sure those objectives are environment through cascaded throughout the — but also for the client. new eyes and bring their organisation. You can define people with them. They’ve the kind of employer you redefined what kind of want to be, and that your organisation they are to work with, whether that’s employees want you to be, and understand how this their employee value proposition or sustaining their will help you going forward to, say, attract talent. reduction in carbon emissions. Plus, if you have a net zero ambition focus on The pandemic has also made businesses consider operational excellence - drive effectiveness and their employees’ needs from a wellbeing perspective, efficiency through your processes. Reducing so they can be their best selves at work. That’s at the waste and repeat work benefits customers, staff heart of building a sustainable culture. and the environment. Hannah: Organisations have seen how quickly they can change when there is a burning platform to Is sustainability worth it for a business? do so. For example, we’ve been working very closely Natalie: Is saving the planet worth it? Is creating a with a client who we’ve never actually met face-tobetter working environment for your staff worth it? face. That’s unusual for us because we’d normally be Is delivering what your customers want worth it? Is based on site with them all day, every day. Remote helping your community to thrive worth it? And, in working and contact via video conference call has case that’s not enough, then consider this equation: created a better, more sustainable way of working for happy employees plus happy customers equals us and our people — but also for the client, because competitive advantage. their teams are dispersed across the country.

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Responding to global challenges requires a circular economy While there is no question that addressing public health consequences of the COVID-19 pandemic is the priority, the nature of the equally crucial economic recovery effort requires serious consideration.

landscape assessment yields brutal conclusions, showing a collapse of economic activity reaching almost 30% in certain OECD countries during the tightest lockdown period. Given the urgency of the COVID-19 recovery, the question is should current stimulus packages focus on finding the way back to growth by kicking business as usual into overdrive, or should they accelerate the shift towards a lowcarbon circular economy? Value of the circular economy One way to tackle this polarising question is to reject the idea that rapidly getting back to economic dynamism is incompatible with a wider system transition. The current crisis makes the circular economy more relevant than ever, as it holds a significant number of economically attractive answers. The early stages of the COVID-19 crisis revealed the brittleness of many global supply chains, for example, with medical and farming equipment availability issues. In these specific cases, circular principles provide credible solutions: design and product policy factors such as repairability, reusability and potential for remanufacturing, offer considerable opportunities in resilience (stock availability) and competitiveness.

displace the need for additional virgin resources - whose extraction entail significant negative environmental impacts. Addressing the climate crisis requires us to look beyond energy and has implications for industry, food systems and land use in general. The end of 2021 will see global leaders gather (possibly virtually) at COP26 in Glasgow and COP15 in Kunming, to usher in delayed negotiations on climate change and biodiversity. At the heart of both discussions are our current models of production and consumption, which need an overhaul.

The current crisis makes the circular economy more relevant than ever, as it holds a significant number of economically attractive answers.

Keeping products in use These value retention strategies have clear advantages when it comes to supply chain stability, but they are also beneficial on the emissions front. Keeping products and materials in use helps

Clear policy is needed Investment in innovative materials, regenerative agricultural practices, better resource management systems and, of course, skills can be done within the scope of today’s recovery packages. Policymakers can greatly help this transition by setting a clear direction and enabling private sector innovation conducive to low-carbon, circular economy models. As the global economy starts to look beyond the storm and considers its future options, moving towards a model that builds economic, social and environmental capital rather than one that depletes finite resources seems like a sound option.

WRITTEN BY Jocelyn Blériot, Executive Lead, International Institutions & Governments, Ellen MacArthur Foundation

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Sustainable waste management is the key to a green company A ‘Resourceful and Responsible’ strategy offers businesses a practical solution for their waste management in order to move towards a greener future.

S INTERVIEW WITH Michael Topham CEO, Biffa plc WRITTEN BY Linda Whitney

Read more at biffa.co.uk/ sustainability

ustainable waste management is key to helping the UK to reach it’s targets on recycling and reducing CO2 and businesses need to lead the way. “The waste industry offers huge opportunities for enabling sustainability, tackling climate change and job creation,” says Michael Topham, Chief Executive of Biffa, the leading UK integrated waste management company. “For instance, we no longer need to bury, burn or export plastic waste – we are already turning plastic into products in three plants in the Northeast, creating UK jobs.” The three ages of waste management “The first age of the waste industry saw the introduction of collections in the second half of the 20th century,” he says. “Rubbish was taken away, buried, and forgotten. In the 1990s we realised that this was unsustainable.” The second age saw the introduction of the ‘waste hierarchy’. This meant first trying to reduce waste, then recycling by reusing more of it, or recovering resources by generating energy from it. Only the remainder was buried in landfill, which was reduced by 80%-90%. However, this ‘collect, sort and ship elsewhere’ model was based mainly on economics. Waste was shipped to countries such as China, the Netherlands and Malaysia. Now countries are rightly refusing it. “We are now in the third age, where we must deal with our own waste in the UK. It’s a model based on sustainability – and it’s a huge opportunity, as we have seen with our plastic processing plants,” says Topham.

Building a circular economy in the community Biffa was prepared for the third age, having released its sustainability strategy, called ‘Resourceful, Responsible’ in early 2020. The strategy focuses on building a circular economy, tackling climate change and caring for its 9,000 staff while supporting communities. Topham says: “Big brands want to be seen using recycled goods and regulators, the Government and wider society want this. We must be involved, by investing in infrastructure, educating the population, providing data, offering advice to sustainability committees and offering corporates waste traceability.”

We must be involved, by investing in infrastructure, educating the population, providing data, offering advice to sustainability committees and offering corporates waste traceability. The strategy commits to the following: • Unlocking £1.25 billion of green economy investment by expanding Biffa’s low-carbon collection business, quadrupling its plastic recycling and investing in lowcarbon energy from waste. In February 2021, Biffa acquired Company Shop Group, the UK’s largest redistributor of surplus food and household products, as part of a plan to offer a circular economy proposition to the food manufacturing and FMCG sectors. It unlocks sustainable value from

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the 141,000 tonnes of surplus food and beverage produced in the UK annually. • On climate change, the company aims for a 50% reduction in its carbon emissions by 2030, partly by discontinuing fossil-fuelled collection vehicles and increasing collection route efficiency by 20%. Since 2002, Biffa has already reduced emissions by 65%. • On caring for its people and supporting communities, Biffa has committed to be a top quartile business for employee engagement while leading on safety and becoming a living wage employer. This is aligned with the Government’s Resources and Waste Strategy for England, which includes a plastics tax, better recyclability labelling and more standardised, consistent collections, backed by minimum standards. Funding will be partly raised by brands paying towards the recycling of their products. “We agree with all of this, but to achieve it the Government must listen to the waste management industry carefully,” says Topham. Primed for a green recovery During the first lockdown, demand from Biffa’s business customers plummeted by 50%. But while protecting around 1,500 of its staff by furloughing them, the business was able to keep serving businesses which remained open. “Our crews were key workers and celebrated as ‘high-viz heroes’,” says Topham. “Customers left thank you messages out with the bins. Our priority now is supporting UK businesses to get back to normal and to helping the sustainable growth of the UK economy.”

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Sustainable finance is helping deliver a net zero future for everyone Climate action today will enable future generations to thrive Companies want to do their part before COP26. But the question of ‘how’ can be overwhelming.

usiness leadership must be at the heart of the transformation to a resilient, zero carbon future. This autumn, COP26 in Glasgow will see world leaders negotiating new targets to address the climate crisis. To achieve the change needed to keep temperature rise to a safe level, businesses must step up and give governments the confidence to act in time.

WRITTEN BY Gudrun Cartwright Climate Action Director, Business in the Community

Climate action must be part of business strategy It is only a matter of time before policy kicks up a gear and those who get ahead of the curve will benefit the most. As the UK recovers from COVID-19, there is a real opportunity to ensure that building back puts us on the right trajectory to a climate safe future. But committing to climate action is about more than cutting plastic, having green champions, or even setting a net zero target. It’s about finding ways to create positive impacts for people and nature and collaborating with diverse stakeholders to set targets and deliver strategies that address real world concerns and challenges. That’s why at Business in the Community, we’re challenging businesses to create ‘climate positive action’ plans and make three key commitments to: • Assess climate risks and opportunities for your business. Think through how both the transition to net zero and the impacts of climate breakdown could affect your company’s business model. The Taskforce for Climate Related Disclosure can give a useful framework. • Set an ambitious net zero target. Don’t be afraid to take a bold stance. Making a public commitment through schemes like Race to Zero and sharing your progress will show you are serious. Once you have committed, you have time to set the target and develop your plan and there’s lots of help to get there. • Be inclusive in development and implementation. Listen to employees, customers, suppliers and communities to gather as many diverse insights and ideas as you can. Look for synergies where you can deliver benefits for multiple stakeholders and think through how you can be part of a ‘just transition’, by creating new opportunities for people who may lose out.

WRITTEN BY James Alexander Chief Executive, UK Sustainable Investment and Finance Association (UKSIF)

A clearer outline of the UK’s long-term economic strategy for each industry and sector would help investors direct the huge flows of investment that will be necessary to drive a transition to net zero carbon emissions.

cross the country the companies, ensuring these companies sustainable finance sector, can continue to play a role in a net supported by the UK zero economy. Sustainable Investment UKSIF’s Policy Vision, published and Finance Association (UKSIF), is last month to mark the organisation’s grappling with, and seeking to help 30th anniversary, outlines key address, the challenge of transitioning steps the Government, regulators to a net zero future. The Government and industry must take to build should be praised for setting some of the environmentally and socially the toughest emissions targets in the sustainable future we wish to see. world and publishing its recent vision Our report asserts the sector’s desire for a ‘Green Industrial Revolution’. to act as a driver of positive change However, it is now necessary to put and makes bold recommendations the ‘meat on the bones’ of this vision to government, including on the and to develop a more comprehensive necessity to outline comprehensive industrial strategy to net zero strategies as go alongside it. soon as possible. With this strategy in hand, sustainable Creating a investors - many sustainable future The Government should of whom have Government ensure that every decision The started to make should ensure that taken in Whitehall moves their own net zero every decision commitments - can taken in Whitehall us closer to a sustainable determine how to moves us closer future. best shape their to a sustainable portfolios to deliver future. Every draft good returns for clients and benefits law, budget statement and policy for the wider economy. consultation should outline how the proposed changes can contribute to Clarity on investor stewardship our net zero target and, help us to Crucially, greater clarity would help ‘build back better’. support the work of investors in However, government or finance stewardship of their investments. alone will not deliver the future we all UKSIF’s members are uniquely placed want to see. Every part of society and to shape the companies they hold the economy must each play a role. shares in through voting at AGMs With a strong vision, a clear and actively engaging with company pathway, closer collaboration and a management and boards. A much laser-sharp focus we can achieve a clearer picture of the economy of the more sustainable future. But the time future will encourage investors in to act is now. pushing for the transition of investee

Businesses need to understand that they can be the change that is so desperately needed. By implementing ambitious targets and inclusive plans, they can help restore our planet and create a legacy for future generations to thrive. But to do this, business leadership is essential, starting with these steps. Together we can make the climate crisis history, but only if we act now.

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Why sustainable innovation is the future of investment With over $50 trillion USD invested in pension schemes worldwide, sustainable investments stand to make a significant difference to the future health and wealth of the planet.

Media reporting is creating much more focus on the challenges we face; be it climate change, scarcity of natural resources or inequality.

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ustainable business practices, from environmental awareness to social responsibility, are becoming higher priorities for investors. Jeffrey Deans, Managing Director of Save and Invest, explains, “In the past, we’ve been used to ethical investment, but that never really got into the mainstream. Over the last two years, however, because of pension scheme legislation requiring an environmental, social and corporate governance (ESG) strategy for portfolios, sustainable or positive impact investment has taken over.” Lynsey Fraser, Director at Save and Invest, agrees: “Clients have become much more aware of sustainability. It is top of the agenda. Media reporting is creating much more focus on the challenges we face; be it climate change, scarcity of natural resources or inequality, and we are finding people want to bring their personal values to their investments much more. “Clients are avoiding single-use plastics and taking steps to avoid their carbon footprint, so it stands to reason that they are also thinking about how their money is being invested.”

Pandemic priorities During the COVID-19 pandemic in particular, awareness of the impact on the world around us has increased. “Conversations have definitely changed over the last 18 months, but COVID-19 has really accelerated these changes,” says Fraser. “The shift in sentiment has been quite remarkable.” As a result, there is an increasing desire among investors to link their pensions or savings with the sustainable priorities they have in other areas of their lives. Thus, the market for companies which can prove their work is sustainable and has a

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positive impact is growing. “Sustainable investment funds want to invest in companies that are going to improve people’s quality of life, be that through the environment or a more stable economy. They believe these are the companies that are going to survive longer term and provide the best or most competitive medium to longer term returns,” Fraser explains.

INTERVIEW WITH Jeffrey Deans Managing Director, Save & Invest

The crux of investing At Save and Invest, 98% of investors have taken up the option of moving their funds into sustainable investment. “We’ve had virtually no clients who have not decided to move to sustainable options,” says Deans. “Sustainable investment is no longer anything other than what investment is about. It really is the crux of investing.” Although Save and Invest puts money into sustainable investment funds rather than selecting individual companies, the group keeps its clients updated with stories of the positive impact their money is having. “We want to bring home to clients why certain companies are the companies of the future,” Deans explains. “If they invest in a tractor company, and the tractor is going to spread pesticides, clients want to know it will have cameras and sensors in it to ensure it hits the weeds not the grain and isn’t going to damage bees.”

INTERVIEW WITH Lynsey Fraser Director, Save & Invest WRITTEN BY Meredith Jones Russell

A win-win situation Furthermore, the company believes it is these creative, forward-looking companies that will provide both the financial and the ethical wins of the future. “Innovation is what will save the world,” says Deans. “We don’t know what innovation is next, but we know it is where the money will be made. It won’t be by companies that destroy the planet or upset society; companies which exploits their workforce, for example. “Not only do we see sustainable investing meeting the values of our clients, we believe it will provide the best possible returns in the medium term. It’s not a gimmick, it actually is the mainstream.” Fraser agrees. “Sustainable funds perform just as well, if not better, than traditional strategies. Clients can make a positive impact through their investments without compromising their investment performance. By aligning their personal views and feelings with their investments, while still achieving a positive outcome within their portfolios, in many ways it does feel like a win-win.”

Save & Invest focuses on ongoing advice, this is evidenced by the changes made to keep its client portfolios relevant. The company is happy to assess anyone’s existing portfolio and suggest how it could be orientated to more positive impact funds and returns. For more information, please visit saveandinvest.co.uk

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Why businesses must join forces in the climate change fight The fight against climate change needs a more connected approach, with calls from the telecoms sector to work with other businesses and consumers to reach emissions reduction targets.

B INTERVIEW WITH Andy Wales Chief Digital Impact and Sustainability Officer, BT Group WRITTEN BY Tony Greenway

usinesses are now realising that they don’t have to make a trade-off between cutting their carbon emissions and turning a profit. “Over the last 15 years, companies have made some big emissions reduction commitments,” says Andy Wales, Chief Digital Impact and Sustainability Officer, BT Group. “We know we can grow and become cleaner at the same time.” Take BT, an early leader on climate action. It set one of the world’s first carbon reduction targets in 1992 and plans to cut its carbon emissions by 87% by March 2031. As part of its strategy, it has pledged to become a net zero emissions business by 2045 and is working to reduce its supply chain emissions by 42% by 2030. The company is now using 100% renewable electricity worldwide and wants to electrify 28,000 of its 33,000 vehicles by 2030. Wales adds “Together with the Climate Group and 29 organisations, we launched the UK Electric Fleets Coalition. We’ve campaigned for an end to new petrol and diesel vehicles sales by 2030 and we want to make sure the right policies are in place to support the mass adoption of electric vehicles.” All of which is hugely positive, says Wales; but businesses can’t fight climate change in isolation. Others need to step up to the plate — and, when they get there, be prepared to collaborate.

Helping consumers to cut emissions But it’s not only businesses that need to make these commitments, consumers can also play a role. Wales says: “Our fixed and mobile networks will shape the way we all live, work and move – supporting everything from homeworking, the development of smart cities, the Internet of things and helping to build smart climate solutions.” “Smaller actions can be taken more immediately,” he says, “such as turning the heating down a degree and using smart sensors to manage light, water, heating and appliances. As an organisation we’re here to help support consumers make more conscious consumer choices.”

We know we can grow and become cleaner at the same time. Overall, Wales is optimistic that companies and consumers understand the seriousness of this issue, and points to the significance of the UN Climate Change Conference (COP26) in Glasgow later this year. “It’s a focal point for committed countries, cities and states — but also for companies who are working with their suppliers and customers to drive to net zero together. We need to accelerate that collaboration to address the challenges we face.”

Finding the right fit: a packaging solution to reduce waste and carbon emissions

wastage by making the packaging perfectly sized to fit the product,” Rector explains. Carbon emissions are also reduced as a result, with fewer vehicles needed to dispatch items when a right size packaged parcel may take up over 50% less space on a delivery van.

With online retail sales growth hitting a 13-year high during the COVID-19 pandemic, demand for recyclable packaging solutions like corrugated board is steadily growing.

S INTERVIEW WITH Stephen Rector Managing Director, Ribble Packaging Ltd

WRITTEN BY Meredith Jones Russell

tephen Rector, Managing Director of Ribble Packaging, explains, “In itself, corrugated board for boxes is a very sustainable and recyclable product. The recycling rates for paper and board in the UK are extremely high in comparison to other packaging products and they are increasing.” However, he warns, packaging solutions must be used correctly in order to be fully sustainable. “Boxes are often too large for their products and so they are filled with non-sustainable ‘void-fill’ materials like plastic, bubble wrap or polystyrene. It is clearly a hugely wasteful and inefficient method of getting the product out.”

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Reducing wastage with correct sizing Ribble Packaging manufactures corrugated board from recycled paper. Rector says, “In total, 100% of our corrugated board is 100% recyclable, while the paper we buy to manufacture our board is 100% recycled. So, our raw material is 100% recycled and our product is 100% recyclable.” This product is fanfolded to create continuous corrugated board in up to 500 metre lengths, which can be fed into fully automated machines to pack single or multiple products in a perfectly sized box, with no wastage. “Right size packaging streamlines the entire process and mitigates or ideally eliminates void-fill and

Automation to help processes Meanwhile, fully automated machines will increase retailers’ resilience in the face of crises like a global pandemic. Rector explains, “The majority of retailers rely on manual labour, especially for packing processes, but the pandemic has really brought home the benefits of automation. In the face of COVID-related staff absences and social distancing requirements, one of these fully automated machines operated by just two people can pack up to 1,000 units an hour and do the job of 10 efficient packers.” “As one of the pioneers of right size packaging in the UK, we are not prepared to sit on our laurels,” says Rector. “We have earmarked £3.5 million over the next two years to significantly increase capacity of fanfold manufacture and protect our hard-won position as the UK’s fanfold market leader. The businessto-consumer market is growing exponentially and our continuing investment is designed to maintain our market position in this rapidly growing sector.”