A Chance for Change: The Tipping Point for Sustainable Business

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Chance

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The Tipping Point For Sustainable Business

#bethechance

#makeitwork


Table of Contents

1. People

I The Perfect Storm: People, Priorities, Opportunities

New Generations, New Expectations Sheila McLean Corporate & Brand Citizenship Practice (CBC) Director, North America, MSLGROUP

Global Insights from our Millennial Community

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6 Millennial Change-Makers

Nidhi Chimnani Director, Research & Insights, MSLGROUP

Fear prompts Indian Millennials to Hope, & Act Schubert Fernandes SVP, India, and CBC Lead, Asia, MSLGROUP

2. Priorities

37 40

Apurva Kothari

Coral Reef Advisory Group & Pacific Voyager

No Nasties

Boyan Slat

Lauren Singer

The Ocean Cleanup

Trash is for Tossers & Founder, The Simply Co.

28

Engage Chinese Millennials with Meaningful Missions

20 30

Kim Ali'itasi McGuire

Samantha Bode

Ghidaq al-Nizar @coffeetopia

The Longest Straw

Lusha Niu Director, MSLGROUP China

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New Development Goals and Climate Agreement offer Opportunities for Business

3 Trends that are Shaping the Future of Business Sustainability

Luis Davila Team Leader, Momentum for Change Initiative, UN Climate Change secretariat

Mark Newton Head of Environmental & Regulatory Affairs, Samsung Electronics America

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The Business of Development: Leveraging the UN SDGs for Business Growth & Global Impact

44

18

3. Opportunities

Nigel Salter, CEO, Salterbaxter MSLGROUP Kristina Joss, Senior Sustainability Consultant, Salterbaxter MSLGROUP

Priorities Change, Values Stay the Same David Tulauskas Sustainability Director, General Motors

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Re-defining Success in Business Marcello Palazzi Co-founder, B Lab Europe

54

Special: Sustainability in Brazil - A Competitive Advantage MSLGROUP Andreoli

58


Table of Contents

II Our Chance for Change: Disruptions in Action

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Unlocking the Forces of Business and Consumer Demand An interview with Sally Uren, Chief Executive, Forum for the Future

Five Disruptions in Action Nidhi Chimnani, Director Research & Insights, MSLGROUP

Melanie Joe, Consultant Research & Insights, MSLGROUP

1. Maximize resources

70 3. Collaborate across boundaries

2. Create positive handprints

80

4. Change behavior

90

98

5. Make clean energy

Featuring comments and case studies from sustainability leaders

Michael Dickstein Director, Global Sustainable Development, HEINEKEN

John Friedman Corporate Responsibility Communications Director, Sodexo, & Author of PR 2.0

Rosie Pidcock Senior Business Development Manager, UGE

Michael Kobori Vice President of Sustainability, Levi Strauss & Co.

David Tulauskas Sustainability Director, General Motors

106 Re-negotiating the UNFCCC Framework Alice MarĂŠchal, Karen Verlinden, RĂŠmy Ruat, On behalf of the Sciences Po student team

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It's Time for Transformation: Everything Needs to be Questioned Pascal Beucler, SVP & Global Chief Strategy Officer, MSLGROUP

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Table of contents

Me, My World, The World

III

Luna Atamian, Senior Account Executive, Corporate & Brand Citizenship, North America, MSLGROUP

Humanizing Sustainability: Making it Matter

45 128

Humanizing Climate Change Kristina Joss, Senior Sustainability Consultant, Salterbaxter MSLGROUP

132 Simplify, Inspire, Engage

Expert tips on engaging core audiences

Inspiring campaigns selected by the Corporate & Brand Citizenship team, MSLGROUP

136

Michael Dickstein

Mark Newton

Director, Global Sustainable Development, HEINEKEN

Head of Environmental and Regulatory Affairs, Samsung Electronics America

Engaging Employees around CSR

126 146

Kerri Warner SVP, Employee Practice, North America, MSLGROUP

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Table of contents

Human Rights is at the Center of Business Sustainability

IV A Rising Business Priority: Human Rights

152

Jim Peacock Director, Consultancy & Communications, Salterbaxter MSLGROUP

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Building the Resilience of People and Communities Liping Mian Human Rights Advocate

154

3 Tips to Achieve Real Impact with your Human Rights Initiative

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150

Luna Atamian Senior Account Executive, Corporate & Brand Citizenship, North America, MSLGROUP

The Ever-Evolving Definition of Human Rights Melanie Joe Consultant, Research & Insights, MSLGROUP

Data protection, a fundamental people right in Europe

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Leonardo Sforza Managing Director, Brussels, MSLGROUP

78 168


Foreword


T

his December, the world's eyes will be on Paris as United Nations delegates, government officials, business leaders and concerned global citizens come together to tackle climate change and global warming at the UN's COP21 climate conference.

The ambition to drive change is unprecedented. Hundreds of thousands of people, experts and leaders have voiced their concern and determination to find and implement meaningful solutions.

Guillaume Herbette CEO MSLGROUP

There has been some progress. Early sustainability leaders are already testing and implementing new best practices. Some big businesses have already pivoted to become more sustainable. Governments are beginning to come around and make significant commitments to change. We are seeing headlines about plastic roads, a solar revolution, sports shoes made of recycled ocean waste, clothes that are being 'grown' and biofuel for jets. It is increasingly clear – no matter what deal is agreed upon in Paris, the global movement for sustainable development can't be stopped. There is much to do, and many businesses and people who are committed to finding a new way of living and taking action. In A Chance for Change: The Tipping Point for Sustainable Business, we feature the voices of inspiring millennials, sustainability leaders and industry experts, and highlight the diverse initiatives already in play. As science fiction writer William Gibson wisely wrote: the future is here, it's just not evenly distributed. We hope this report reassures you that change is coming, and inspires you to be a part of the journey. If you are looking for a partner in developing your sustainability story, start a conversation with us today. We would also like to take this opportunity to thank our contributors for their valuable input to this report.

Click on the Twitter icons throughout this report to tweet the quotes that are highlighted. Foreword

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Sustainability Meeting the needs of the present without compromising the ability of future generations to meet their own needs

Planet

- United Nations

People

Profit


Sustainable Citizenship: A corporate citizenship that is solidly grounded in a consistent and coherent sustainable business strategy, and backed by evidence.

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Introduction:

The Road To & Through Paris Pascal Beucler SVP & Global Chief Strategy Officer, MSLGROUP @pbeucler

Join an unstoppable movement: A collective commitment to tackling climate change The COP21 conference, coming up in Paris this December, will be the focal point for the world's leaders and leading companies as the United Nations’ Secretary-General Ban Ki-moon seeks a binding commitment to tackle global climate change. The conference is being billed as the most significant attempt to organize a response to the risks presented by severe climate change and its impact on the world's economy and populations. Last year's UN Climate Summit in New York generated huge interest, massive demonstrations and some striking commitments from corporations and corporate leaders. It was merely a warm-up ahead of COP20 in Peru in 2014 and the bigger focal point, COP21 in Paris in a few weeks from now.


Paris prepares for COP21 As part of renovations to the Eiffel Tower, UGE was called in to install two wind turbines on the second floor of the iconic monument. The turbines will produce 10,000kWh of electricity a year, enough to cover the energy needs of activity on the Eiffel Tower's first floor.

Image Credit: UGE

The issue of climate change and the conference in Paris will be extremely high profile until the end of 2015. It will be relevant to major corporations, governments, NGOs, industry groups and global bodies. Businesses, their audiences and all their stakeholders will have to respond to the debates during the event and then develop initiatives following the outcomes of COP21. As we get closer to the summit, we are already witnessing a growing interest - and concern - around the climate issue. It is more than just a technical debate between climate experts. It also goes beyond the climate change denial controversy. Introduction : The Road To & Through Paris

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We are seeing a broad and diverse range of stakeholders raising their voice from leaders who are acknowledging climate change to ordinary citizens who are concerned about their personal and collective future on this planet. They are taking action, or showing the willingness to do so.

Millennials are frustrated and worried, see what they are saying at our platform bethechance.com, and on page 22.

Image Source: 360b / Shutterstock.com

MILLENNIALS

Image Source: giulio napolitano / Shutterstock.com

RELIGIOUS LEADERS Pope Francis expressed a very high-level moral statement on our historical responsibility - and particularly that of businesses and financial institutions in his recent encyclical on the environment and climate change. Leaders of other faiths, such as the Dalai Lama and Muslim leaders across the globe, are speaking out as well.

GOVERNMENTS Government officials in various countries - and not just the usual suspects like Al Gore or Ministers of Ecology - are speaking out. Earlier this year, Saudi Arabia's oil minister Ali Al-Naimi spoke of his country's investment in solar energy as they prepare for a near future where fossil fuels are no longer needed.

CELEBRITIES Pop cultural icons are leveraging their fame for change. From Hollywood actor Leonardo DiCaprio who was named the UN Messenger of Peace for Climate Change last year, to musician Pharrell Williams who joined Bionic Yarns - a company that transforms plastic waste into fabric. Spoken word artist Prince EA has risen to fame because of his voice on today's issues - his video “Dear Future Generations: Sorry” has amassed over one million views.

CITIZENS Concerned citizens are making lifestyle changes to reduce their own impact on our global footprint (My Zero Waste).

Image Source: twitter.com/PaulPolman

BUSINESSES Business leaders are passionate about driving change. Earlier this year, 43 “Climate CEOs” representing companies with operations in 150 countries wrote an open letter voicing their support to transition into a low-carbon, climateresilient economy. This coalition was facilitated by the World Economic Forum, and includes big multinationals across FMCG, finance, insurance, construction and electronics industries.

Image Source: youtube.com/watch?v=eRLJscAlk1M

It is too early to know how successful the negotiations at COP21 will be. But what is sure is that a worldwide opinion movement is growing around the climate issue, and that nobody can stop it.


Towards new business models: A growing intricacy between business and climate What's at stake for business? Their ability to exist in the future. To safeguard communities and supply of natural resources. To protect investments. To attract and retain (and satisfy) talent. To meet the needs and expectations of customers and investors, who are looking for businesses to adapt to digital disruptions and prepare for physical disruptions. A changing climate is everyone's problem - that is one of the realities of living in such a globalized, complex world. As Barack Obama reminds us, we have but one planet - earth. Beyond this, a key driver is our conscience - our ambition to build a better world for our children and to leave behind a strong positive legacy.

Introduction : The Road To & Through Paris

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As the road to the COP21 becomes busier, these words of Unilever chief Paul Polman in Business, society and the future of capitalism (McKinsey) have a particular resonance: In the coming 15 years, we need to align on the new Millennium Development Goals. We have a unique opportunity to create a world that can eradicate poverty in a more sustainable and equitable way. That is very motivational. Business needs to be part of it. Corporate social responsibility and philanthropy are very important, and I certainly don't want to belittle them. But if you want to exist as a company in the future, you have to go beyond that. You actually have to make a positive contribution. Business needs to step up to the plate. Although some people might not like business or fail to understand that it needs to make a profit, they do understand that it has to play a key role in driving solutions. In the next ten years, I think you are going to see many more initiatives undertaken by groups of businesses to protect their long-term interests and the long-term interests of society. Governments will join these initiatives if they see business committed. It is, however, becoming more difficult for governments to initiate such projects in the current political environment as long as we don't adjust our outdated governance model.


Business sustainability: From convenience to compliance, now to performance There is no doubt that sustainability is no longer a compliance - or “just” a corporate social responsibility - issue. It is now definitely a core business concern that is fundamental to long-term objectives, long-lasting performance and creation of beneficial shared value. Like Coca-Cola Enterprises puts it: “those that seamlessly incorporate sustainability within their overall strategy not only benefit from improved cost margins and an enhanced corporate image, but also make valuable contributions to critical global concerns such as youth unemployment and resource scarcity.”

At MSLGROUP, we are deeply convinced that there's no better reputation shield than what actually insulates the organization from future risks, and fosters robust relationships with customers, employees and communities. Nothing is more important today than to collaboratively address, as the Financial Times and Coca-Cola Enterprises highlighted it, the sustainability challenges, strategies, trends and perspectives that are shaping all business models: “ensuring that the next-generation is workplace-ready, tackling resource wastage and climate change, and enabling leaders to engage with society and prepare their organizations for future threats and opportunities.” This calls for new and innovative ways to combine profit and purpose; to redefine the role of business in society; and to better identify and analyze what younger generations believe, value and bring to the table. Connecting purpose, participation and profit is what creates the conditions for what we tend to call Sustainable Citizenship: a corporate citizenship that is solidly grounded in a consistent and coherent sustainable business strategy, and backed by evidence.

Introduction : The Road To & Through Paris

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MSLGROUP's approach to the Reputation Complex These elements are what make up a company's reputation in today's liquid age:

Purpose what you stand for as a company

Citizenship the way you help solve pressing social issues

Employer Value Proposition what makes you an employer of choice

Social Openness your ability to listen and share


Join us at A Chance for Change, our event in Paris this December to understand where millennials and business overlap on the topic of climate change.

U.S. millennials alone are projected to spend $1.4 trillion annually by 2020 (Accenture)

If you're not where Millennials are, you're nowhere In many ways, the future of Sustainable Citizenship is now in the hands of two unexpected partners: businesses and millennials, the most influential generation the world has ever seen.

of their business strategy: (1) a corporate purpose that is grounded in sustainability and (2) a relevant citizenship approach. Businesses that are able to really understand millennials' mindsets and their views, concerns and priorities especially around sustainability and the climate, will be better able to engage millennials and make them part of their sustainability story.

Why millennials? There are nearly 2 billion millennials globally. They will make up the majority of the global workforce in a few years. Their cumulative spending power is large and they believe business should be measured by more than just profit (Deloitte). This surprising couple of business and millennials could very well change the game as long as major companies put two things at the heart

Read early insights from our online millennial community, bethechance.com, at Page 22. Follow @BetheChance on Twitter for fresh insights

Introduction : The Road To & Through Paris

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Section I: The Perfect Storm: People, Priorities, Opportunities


Millennials are driving the demand for change. They are upset about the lack of climate action, and have big expectations of business, and of themselves.

Section I : The Perfect Storm: People, Priorities, Opportunities

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SECTION I : PEOPLE

New Generations, New Expectations The question is no longer whether a business should behave in a sustainable manner Of course, few businesses have ever claimed to act against the interests of society. But for too long, Corporate Social Responsibility (CSR) has been based largely on the assumption that the business case always aligns with the societal case as long as enough philanthropy is dispensed. New generations and new expectations have moved us significantly beyond this idea. Stakeholders now expect all businesses to take responsibility for all their impacts and to prevent human rights harms. So the question is no longer whether a business should behave in a socially responsible and sustainable manner, but rather: How?

Sheila McLean Corporate & Brand Citizenship Practice (CBC) Director, North America, MSLGROUP

In 2014, MSLGROUP surveyed 8,000 millennials in 17 countries on the topic of sustainability and citizenship. Millennials' views differ starkly from those of preceding generations. Millennials feel that government can't solve societal issues by themselves, and are counting on business to be the solution and to be actively involved.


Millennials are a driving force for business sustainability Millennials - the largest, most diverse and influential generation to date are game changers in their expectations of business, with distinct ideas on how companies should behave. The overwhelming majority believe that corporations should tackle issues such as the economy, health and environment. Millennials look to businesses not only to lead, but also to actively engage them in the process. This opens ups huge opportunities for businesses worldwide to re-set in the face of declining stakeholder trust. However, a key point in the study is the degree to which millennials expect business to be active in addressing sustainability issues. Just complying with the law and PR will simply not wash. Millennials expect serious and effective performance in these areas. This can in part be explained by the recent economic crisis across the globe, which has led to a serious lack of faith in business and an increased expectation that business needs to work differently and deliver different outcomes. Link this to the transparency being driven by social media, and businesses that don’t act will not succeed.

There is an urgent need to move from talk to action. Leading businesses know that they are a critical part of the solution. These leaders go well beyond philanthropy and drive their organizations to make money in more sustainable and socially responsible ways. Business have to move away from the short-term focus on shareholders alone to a model of sustainable citizenship that focuses on all stakeholders. Governments also must act, providing sticks and carrots to business. Sustainable business practices must be enterprise-wide endeavors, steeped in purpose. No matter what words are used, concerns about climate change are real and here to stay. Just ask the millennials whose buying and voting power will only grow. Business and government leaders who ignore sustainability do so at their own risk.

Section I : People | New Generations, New Expectations

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SECTION I : PEOPLE

Global insights from our millennial community

Millennials are worried, frustrated, and want climate action, now! In the lead up to COP21, we asked our global community of millennials at BetheChance.com how they feel about climate change. Over 250 millennials (18-30 year olds) from Canada, China, Denmark, India, Poland, United States, United Kingdom and beyond shared a remarkably similar voice: they are deeply concerned about the climate, disappointed in our collective past behavior and desperate for change. Nidhi Chimnani Director - Research & Insights, MSLGROUP, and a Millennial @nidhichimnani

Their responses echoed the findings from MSLGROUP's 2014 survey of 8,000 millennials across 17 countries: Millennials hold businesses responsible for implementing solutions.


Millennials want brands to partner with… Governments

Organizations (like the United Nations)

Charities 73

125

129

169 Better Suppliers

22

86

People like Me

Religious Organizations

Survey Question: How do you want your favorite brands to address climate change? (Data based on 239 responses)

Over the last few weeks, millennials shared that they demand BIG actions from business – they want to hear more about greener and cleaner products and want businesses to take a greener approach in their operations, innovations, packaging and investments. Most of all, millennials want businesses to partner with governments to address climate change. With regional and global media shining the spotlight on individual countries’ climate change commitments and world leaders’ stance on this issue, it shouldn’t come as a surprise that millennials want to see collaboration amongst these two important stakeholders of business and government.

Globally, governments emerged as the “most responsible” for implementing solutions to climate change. This sentiment was especially true amongst millennials in the west - Canada, United States, Denmark and United Kingdom, and in China, indicating a possible fatigue at all the hype and lack of action. Millennials from India and Poland said that the change starts with them, followed by governments, people in general, businesses and non-profits. As one young Polish millennial put it - it's not just big businesses that have an impact, every single person does.

Section I : People | Millennials are worried, frustrated, and want climate action, now!

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When it comes to climate change, there are broadly 5 types of millennials. Here’s how businesses can engage with them. When we asked our community of millennials what emotion they feel when thinking of climate change, they shared a diverse range of answers. Across the seventy-five shades of emotion they shared, five clear themes (and takeaways) emerged.

1

2

3

Millennials are AFRAID: they are worried, nervous and uncertain about the future.

Millennials feel FRUSTRATED: they are angry and annoyed at perceived inaction.

Millennials feel RESPONSIBLE: they are sad and disappointed, but also ashamed and guilty.

Climate-anxiety appears to be very real among this group, with several millennials sharing that they feel panic, nervousness and angst when they think about the climate. On the other end of the spectrum, several millennials expressed confusion and uncertainty.

Their frustration stems from a perceived lack of action – especially in countries where solutions are within reach. As Sara, 24, from Denmark remarks: “It's so easy to do something - so why on earth do politicians and companies have to make it so hard?”

They feel responsible for the current state of our planet. In fact, half of the millennials we heard from believe that change starts with them personally and they seem ready to act with their wallets.

Take-away for businesses: Simplify communications around this complex issue, and engage millennials around the potential to make a positive change, together.

Take-away for businesses: There’s an appetite for more information on climate action. Now is clearly a good time to start talking about your initiatives and contributions to solutions.

Take-away for businesses: Millennials are thinking more and more about the implications of their everyday habits. They want to hear about businesses’ greener and cleaner products and they want business to innovate and change the way they operate to deliver on this.


4 Millennials feel POWERLESS: in the larger scheme of things. While they are ready to be the chance for change, several millennials have admitted that they feel helpless, defeated, resigned and paralyzed - the impacts of climate change seem “unstoppable.” It’s no wonder they have high expectations of businesses and governments.

Take-away for business: Demonstrate the value that millennials can deliver, as customers and as employees, as individuals and as a whole.

5 Millennials also feel HOPEFUL. They believe this is our greatest opportunity for “innovation, collaboration and the establishment of a real global community,” in the words of one millennial from Denmark.

[I’m] shocked that the things most of us don't even think about can have such a huge impact half way round the world! - Elena, 19, UK

Others view it as a last resort. As a millennial from Malaysia said, “We cannot live happily when seeing our own house are being burnt (sic)… I do not want to feel sick anymore.”

Take-away for business: Involve young adults as your citizen partners, make them a part of your journey, and provide ways for them to make a meaningful difference.

For more insights from MSLGROUP's #BetheChance community, follow @BetheChance on Twitter, where we will be sharing the voice of millennials in the run up to and during COP21.

Section I : People | Millennials are worried, frustrated, and want climate action, now!

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SECTION I : PEOPLE

The Asia View:

How Millennials feel about Climate Change in China and India


In October 2015, MSLGROUP asked millennials three questions around climate change:

How does climate change make you feel? Who is responsible for implementing solutions? How do you want your favorite brands to address climate change?

In China and India, 90 young adults, aged 18-30, shared their views. Like their global peers, they are WORRIED, ANXIOUS and SAD about climate change. This is not surprising, considering that millennials in both these countries have recently witnessed economic growth driven by aggressive industrial activity. Millennials in both China and India have seen first hand the impact of human activity on their local environments both countries are home to some of the most polluted cities in the world. Chinese and Indian millennials say they want businesses to deliver cleaner and greener products, and to partner with governments to drive real change. Both believe that government and business play a key role in addressing climate change. But they are different in one key way: far more Indian millennials believe that the change starts with them personally. We asked Schubert Fernandes, our Asia lead for the Corporate and Brand Citizenship (CBC), and Lusha Niu our China lead for CBC, to shed more light on these insights.

Section I : People | Millennials are worried, frustrated, and want climate action, now!

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SECTION I : PEOPLE

Climate Change:

Fear prompts Indian Millennials to Hope, and Act A couple of years ago a discussion about climate change in India would give you a generic approval endorsing the need for environmental conservation and protection. But today, the same conversation ignites fear and anxiety in the minds of young India. This sentiment in many ways assumes the same amount of seriousness as other matters that keep millennials busy like education, career, lifestyle or love.

Schubert Fernandes Senior Vice President, India, and, Asia Lead, Corporate & Brand Citizenship, MSLGROUP

India is currently grappling with yet another drought situation, its worst since 2009. Erratic monsoons certainly top the list of related worries, given its effect on the $370 billion agriculture sector, 60% of which is dependent on rainfall. Global warming is taking its toll right across and however much is being done in carbon control or clean energy, it doesn't seem to be enough given the aggressive pace of growth that all economies are driving.


In the coming months and years, Indian businesses will have a huge opportunity to engage with concerned millennials and involved them as active agents of change, to make the difference that is so desperately needed.

In this context, Indian millennials are scared. They are worried and sad by the current state of the planet. They sense there is an urgent need to act and they have started to act. With the help of social media, campaigns to drive change or oppose environmental degradation have seen success. Pivotal bodies like the government and corporates are also keeping pace. It’s difficult to ignore the surging urge of the country’s young, now a little over 30%, to effect change. The Government of India recently submitted to the UN a detailed climate change plan known as the Intended Nationally Determined Contribution (INDC). Four Indian corporates, ITC Ltd., Tata Steel, Tech Mahindra and Wipro Ltd., scored a maximum 100 Carbon Disclosure Project score to top the Climate Disclosure Leadership Index (CLDI) for the quality of climate change related information they have disclosed to investors.

With the cry for support unanimous and emotions ranging from anger to frustration to guilt and responsibility, millennials in India have shown interest in getting involved in business and sustainability initiatives. Businesses are responding by involving young minds in planning and programs, and by funding innovative projects or just simply encouraging ideas and actions through high profile engagement initiatives and contests. We are hoping that the UN will make a powerful point in this direction at the COP21 summit. In the coming months and years, Indian businesses will have a huge opportunity to engage with concerned millennials and involved them as active agents of change, to make the difference that is so desperately needed.

Section I : People | Millennials are worried, frustrated, and want climate action, now!

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SECTION I : PEOPLE

Engage Chinese Millennials with Meaningful Missions If there is only one thing that the rest of the world needs to know about Chinese millennials on climate change is that they are living through it every day for the first time. None of the parents or the great parents of this generation of Chinese millennials had breathed the air and walked through the smog with a clear conscious of it being the pollution up till now. Let's not forget it was only a few years ago that the government was in denial of the pollution index published by others. a

Lusha Niu Director, MSLGROUP China

What's so great about Chinese millennials is the fact that they are holding themselves responsible to make the change happen. They largely consider businesses and the government as the key drivers to take them down a greener path. A key behavior change we have observed among Chinese millennials is they no longer taking consumption of eco-friendly products as a cool and trendy act to follow but they are doing it with a clear conscious of contributing, little by little, to bring back that blue sky we once lived under.


Chinese companies and some of the very prominent Chinese entrepreneurs also enacted varied degree of emission controls voluntarily on their own operations, an act viewed highly by Chinese youth when they think of a potential employer or a maker of products destined for them. After all, Chinese millennials equals 415 million customers today1 and 35% of country's total consumption by year 20202. It also translates into USD 3 trillion aggregate income growth over the next 10 years. For marketers, 95% of female Chinese millennials owns smartphone devices and 49% of them consume advertisement on their phones3.

The secret to success in today's China is for businesses to actively engage with Chinese millennials on meaningful missions - climate change being one of the obvious choices. The engagement also needs to be creative and attractive at the same time in order for it to work well and mark substantial impact. Urban Chinese millennials are also the generation of one child policy so they have disposable income of between USD 1,500 to 3,800 per day on a single vacation trip overseas4. So a meaningful and tasteful engagement would go a long way for the initiators in terms of both impact and influence.

Source: 1 Goldman Sachs research and MSL analysis. | 2 AC Nielson market research and MSL analysis. | 3 emarketer statistics and MSL analysis. | 4 Forbes travel research and MSL analysis.

Section I : People | Millennials are worried, frustrated, and want climate action, now!

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SECTION I : PEOPLE

Six Millennial Change-Makers on Sustainability


The consequences of climate change are evident when you live on an island in the South Pacific. Rising sea levels are taking our land and threatening our way of life.

Kim Ali'itasi Mcguire Coral Reef Technician, Coral Reef Advisory Group & Pacific Voyager, American Samoa

Image Credit: Natalia Tsoukala

Kim protects coral reefs in her native American Samoa, and has sailed across the Pacific Ocean twice on a traditional Polynesian va'a (boat) to raise awareness around climate change. A first hand witness of the dangers of climate change, Kim believes the time to act is now.

“For thousands of years we have grown our crops and have enjoyed the abundance of resources from our coral reefs. However, in the past decade we have seen the rapid decline of our reefs and crops due to high temperatures and rising sea levels. We need the rest of the world to see what we see, to understand the impacts that we feel. There is no more time for denial. We need this time to come up with solutions. We need to find ways to become resilient.

Pacific Voyager. My most recent voyage was to the 2014 IUCN World Parks Congress in Sydney. The leaders of Kiribati, Palau, and Cook Islands were on board with us. Now we need the rest of the world's leaders on board with us. I voyage and speak out because I care about what we are leaving for our future generations. I want them to know that I tried my best to preserve our paradise for them.�

The Pacific Voyagers journey to Sydney in 2014

My love for my Samoan ancestry and my Pacific island community was my motivation to become a

Section I : People | Six Millennial Change-Makers on Sustainability

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When it comes to environmental issues in general, I think a common response is, well that's a long way off, that's for our children to worry about. So hello, here I am. Why don't we just clean it up?

Boyan Slat Founder of The Ocean Cleanup, Netherlands

Image Credit: The Ocean Cleanup

At a TEDx talk in 2012, Boyan introduced a method to collect all the plastic in the top layers of world's oceans. To date, the 20-year old has built a team of 100 members, completed a feasibility study and raised $2 million to fund the next phase of testing. @BoyanSlat

Crew inspects a 40m long proof-of-concept barrier in Portugal, March 2014.

How the oceans can clean themselves: Boyan Slat at TEDxDelft

Watch the sequel to Boyan's 2012 TEDx Talk


I personally cannot keep turning on my tap, without knowing where the water is coming from, because one day, if that runs dry, then I'm‌ I'm dead.

Samantha Bode Director of feature film The Longest Straw, Los Angeles, United States

Nearly two years ago, Samantha and her producer Angela Jorgensen developed a deceptively simple concept: Bode would backpack the full length of the LA Aqueduct to help the people of Southern California draw a connection between the water that comes out of their taps and the source of that water, hundreds of miles away.

@TheLongestStraw

In 2014, Samantha successfully completed the 64 Day, 400 Mile backpacking journey. By depicting the epic journey that the city's water must travel, she and her crew hope to bring home the importance of water conservation, appreciation, and development of local water sources for the city of Los Angeles.

The Los Angeles Aqueduct, one of three major water sources in LA, began operation in November of 1913. Originally, it stretched from Owens Lake to LA, but as the City of Angels has grown, greatly expanding local water needs, the aqueduct has been twice extended, now stretching 338 miles and ending north of San Francisco and east of Yosemite National Park.

Trailer: The Longest Straw

Section I : People | Six Millennial Change-Makers on Sustainability

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Anyone truly aware of what is going on with our cotton farmers would not continue to ignore this crisis. If you had a viable alternative, you would choose it. No Nasties hopes to be that alternative with our 100% organic & 100% fair-trade clothing."

Apurva Kothari Founder, No Nasties, Mumbai, India Image Credit: No Nasties

While in the U.S., he had read a lot about the agrarian crisis faced by Indian cotton farmers and the high number of farmer suicides in India. In his research, he found there had been over 300,000 farmer suicides in the last 15 years that's more than one every 30 minutes!

Apurva was in the United States for over 10 years working in Technology in New York. In 2011, he decided to move back to India and wanted to get involved with organic clothing. @nonasties

When Apurva returned to India, he decided it was time to change career paths and started No Nasties. Apurva structured No Nasties around a mission to help the cotton farming community. Every product from No Nasties is 100% organic

and 100% fair-trade. Organic reduces the input costs for farmers, while fair trade increases revenue. No Nasties pays a fair-trade premium that is used by the farmers for community development projects. This approach helps not just the individual farmer, but the entire village.

See the No Nasties clothing range


I have always cared deeply for the environment. I studied environmental science and was always talking about how we should do this and that. But I wasn't actually doing anything to live that way. So I decided to make a change and go Zero Waste.

Lauren Singer Blogger, Trash is for Tossers and Founder, The Simply Co., New York City, United States Image Credit: The Simply Co.

Lauren shares her experience going Zero Waste on her blog and through speaking engagements. Inspired by the positive support she has received from her readers and viewers, she quit her job and started her own company, The Simply Co. @Trashis4Tossers

“Going Zero Waste has been the absolute the best way to align my values (hope for a more balanced environment) with my day to day lifestyle (not producing any trash and living sustainably).

product options out there, the same did not go for cleaning products. In fact, there is very little regulation in the cleaning product industry and what you think you are buying might not always be what you get.

A big part of living a Zero Waste lifestyle for me has been making all of my own products from scratch, everything from toothpaste to cleaning products. I was getting a lot of emails from my blog readers asking for places that they could buy products that were like the ones I was making since they didn't have time to make them.

This upset me. We, as consumers, have a right to safe, transparent, and effective cleaning products and it got me thinking - I had an opportunity to make these products for others. So I quit my government job as a sustainability manager and my company, The Simply Co., was born.

I started looking in stores and realized that while there were beauty

Lauren's Tedx Talk: How I live a zero waste life

Since launching my company, I have gained a platform and ability to share how I live with a larger audience than I ever thought possible.�

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For two years, I have been running my own little green campaign. I create drawings and photography using coffee grinds! I chose #zerowaste coffee because it's all about using and re-using the coffee waste, to make it more valuable.�

Ghidaq al-Nizar Artist @coffeetopia and founder of #zerowastecoffee, Indonesia Image Credit: @coffeetopia

"We live in an era where waste is one of the biggest human problem. Zero waste coffee is a way to express my concern for environmental sustainability.

Ghidaq's love for coffee and the planet inspired his #zerowastecoffee collection of art.

I use coffee waste - that is coffee grinds - to make my paintings, it’s all created from remnant coffee. The second big issue that we face is deforestation so I do not use paper but plates as canvas because I am aware of how paper contributes to deforestation.

I am very grateful because thanks to my work, I was chosen as one of the ambassadors of my country's national organization to campaign for the conservation of the Sumatran tiger. My art is an example that anyone can show kindness to nature, for anything. I believe that art should be used not to escape from reality but to recreate the reality itself, a better reality!"

View Ghidaq's #zerowastecoffee collection on Instagram and Facebook


The real opportunity is the continued demand from consumer. It's the millennials that are showing there is a market. The more they demand, the more the business changes. Right now, the market is demanding sustainability. We make it easy. David Katz Founder and CEO at The Plastic Bank @DavidKatzEO

The Plastic Bank incentivizes people in disadvantaged communities to collect plastic and swap it for goods - like access to solar-powered mobile phone charging stations, and soon, access to 3D printers. The Plastic Bank then recycles the collected plastic and sells it to brands as “Social Plastic.� Watch the story of Social Plastic by The Plastic Bank

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SECTION I : PRIORITIES

New Development Goals and Climate Agreement offer

Opportunity for Business

Luis Davila Team Leader, Momentum for Change Initiative, United Nations Climate Change secretariat @davilalu

The new Sustainable Development Goals (SDGs) and the Paris Climate Conference (COP 21) in December 2015 will drive the world's development agenda for decades to come. Businesses will undoubtedly play an essential role in implementing these goals and agreements, especially as it relates to partnerships, innovation and investment.


The new Sustainable Development Goals (SDGs) and the Paris Climate Conference (COP 21) in December 2015 will drive the world's development agenda for decades to come. Luis Davila, UNFCCC

Image credit: Delpixel / Shutterstock.com

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Partnerships Public-private sector alliances will be key to achieve the new SDGs and to dramatically scale up climate solutions. Whether it is constructing resilient infrastructure for the 21st century that can withstand the effects of climate change, or expanding health services to millions of underserved communities globally, businesses will be called upon to help accelerate poverty reduction and build a more sustainable world. This provides a unique opportunity for businesses to expand services and tap into new markets, but perhaps more importantly it provides a roadmap for achieving shared value for businesses and served communities.

Innovation If the international community is going to have any chance at meeting the SDGs or implementing a new universal climate agreement, it will need tap into the ability of entrepreneurs - and the business community at large - to be creative, disruptive and innovative. Large-scale transformation will be necessary to get closer to a highly resilient, low-carbon economy that promotes growth and prosperity for all. Luckily, the world has never had better know-how and solutions to avert crisis and create opportunities for a better life for people all over the world. From renewables to organic agriculture, solutions span every sector of the global economy.

Investment Investors are becoming increasingly aware that climate change will affect returns on investment by potentially stranding assets or affecting companies that have not made their supply chains resilient to climate impacts. This means that businesses are facing tremendous challenges, but at the same time have a unique opportunity for internal transformation. Not just of operational issues, but of their long-term corporate strategy to match the challenge of implementing the SDGs and addressing the effects of climate change.

The Lima-Paris Action Agenda aims to accelerate climate actions both pre 2020 and afterwards - among governments, organizations, concerned citizens and businesses.

This year marks a defining moment in the global quest for a sustainable future for 7 billion people, rising to over 9 billion by 2050. The SDGs and the Paris climate change agreement offer no quick fixes, but businesses can and must play an important role in helping them succeed.


The 17 new Sustainable Development Goals, also known as The Global Goals, set the agenda for global leaders and businesses through 2030.

1

NO POVERTY

2 ZERO HUNGER

7

AFFORDABLE AND CLEAN ENERGY

DECENT WORK AND INNOVATION 8 ECONOMIC 9 ANDINDUSTRY, 10 REDUCED INFRASTRUCTURE GROWTH INEQUALITIES

13 CLIMATE ACTION

14 LIFEWATERBELOW

HEALTH 3 GOOD AND WELL-BEING

15 LIFEONLAND

4 QUALITY EDUCATION

5 GENDER EQUALITY

WATER 6 CLEAN AND SANITATION

11

RESPONSIBLE 12 CONSUMPTION

SUSTAINABLE CITIES AND COMMUNITIES

AND PRODUCTION

PEACE AND JUSTICE 16 STRONG 17 FORPARTNERSHIPS INSTITUTIONS THE GOALS

Image Credit: globalgoals.org

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SECTION I : PRIORITIES

The Business of Development Leveraging the UN Sustainable Development Goals for Business Growth and Global Impact A more diverse set of goals: A larger role for business Starting January 2016, the UN Sustainable Development Goals (SDGs) will replace the Millennium Development Goals (MDGs) in dictating the global development agenda through 2030. The 17 SDGs reach across six broad categories of cooperation, dignity, justice, people, planet and prosperity, and include targets and indicators that are global, inclusive and scientifically grounded.

Nigel Salter

Kristina Joss

CEO, Salterbaxter MSLGROUP

‎Senior Sustainability Consultant Salterbaxter MSLGROUP

@nigelsalter2

@kjoss_

While not legally binding or mandatory, the SDGs will undoubtedly inform investment plans and international jurisdictions, set national development budgets and drive sustainability activity. Perhaps the biggest difference between the two is the role of the private sector.


While the MDGs were largely directed at governments, and thus often brushed off by the business community, the SDGs are deliberately designed for business and civil society to bear responsibility for together. It's important to acknowledge that not everyone thinks the SDGs are a great new step forward. There remains a substantial body of opinion suggesting the goals are unlikely to deliver. Politicians and CEOs alike have criticized the SDGs for being too lengthy, too complex and downright unrealistic. With 17 goals, 169 targets and more than 300 provisional indicators it's an understandable criticism to make. Yet despite the opposition, the SDGs are intended to provide the widest range of opportunities for governments, businesses, NGOs and institutions to focus on areas where they can collaboratively make a positive difference.

For businesses specifically, it is not only about maximizing material contribution, but also maximizing value for all their stakeholders. The UN has been clear that unlike the MDGs, the SDGs will require the full engagement and participation of businesses to make achieving these goals possible. For the last 15 years, businesses have shown their value in tackling global challenges through robust sustainability strategies and community investment programs. From investment in major infrastructure; protection of human rights and the planet's ecosystem; improving opportunity, justice and prosperity; and engaging and educating consumers - business is being seen as a collaborative partner in building a better world. This creates an enormous opportunity for businesses to engage as a strong and positive influence on society and champion of our planet's stability.

From investment in major infrastructure; protection of human rights and the planet's ecosystem; improving opportunity, justice and prosperity; and engaging and educating consumers - business is being seen as a collaborative partner in building a better world.

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Fortune favors the brave: 5 key insights for taking action The SDGs could prove to be a guidepost for companies that have strong ambitions and visions for their business and the value it creates for society. When ascertaining the SDG opportunity, businesses can focus on five key insights for taking action:

1 Communicate more meaningfully Communicating sustainability remains a tremendous challenge for even the most advanced companies and today’s consumers are demanding business play an active role in addressing social and environmental challenges. The arrival of the SDGs will only intensify the need to communicate better to an increasingly educated consumer base and will provide the language to do so.

4 Look across the value chain Multinational companies will want to understand whether their company operations across different geographies impede or align to each country's strategic initiatives for the SDGs.

2

3

Report with purpose

Sync the strategy

With GRI and the UN Global Compact & WBCSD's implementation guide Compass, businesses should consider how to incorporate the SDGs into their reporting activity. This means a more proactive approach to demonstrating where and how the business is delivering material impacts against the global challenges outlined by the SDGs. In fact, the SDGs should provide the context, relevancy and value that are often lacking in sustainability reports.

The SDGs arrive at a crucial point in the sustainability agenda, with many businesses looking to review their strategies and 2020 goals. Identifying opportunities to link existing and new sustainability strategies to the global challenges outlined in the SDGs will enhance a business' ability to reach sustainable growth.

5 Collaborate to innovate Big impacts will require multiple layers to deliver. The SDGs will be a catalyst for innovative cross-sector, cross-issue and cross-geography collaborations that leverage respective strengths, assets and expertise all aimed to scale. Businesses should seek partnerships that are built on need and focus on innovative approaches to the indicators, as they will be the most impactful.

The SDGs arrive at a pinnacle moment for the sustainability agenda, with the mobilization of citizens at the 2014 Climate Week rally in New York City, a landmark case on climate change in the Dutch courts, and the cooperation of international governments leading up to COP21. As a result, the business community faces a unique opportunity to explore - in collaboration with the rest of the global community - the potential for a problem solving agenda to the world's biggest challenges. To learn more about the business opportunity and to get in touch with Salterbaxter MSLGROUP, visit http://sdg.salterbaxter.com/


The business community faces a unique opportunity to explore, in collaboration with the rest of the global community, the potential for a problem solving agenda to the world's biggest challenges. Nigel Salter, Salterbaxter MSLGROUP

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SECTION I : PRIORITIES

3 Future of Business Sustainability Trends that are Shaping the

We asked CSR veteran Mark Newton what the future of business sustainability will hold for sustainability leaders. He shared three trends to watch out for.

1 All things digital. Massive amounts of disaggregated data coupled with the rapid expansion of global digital connectivity presents an almost irresistible opportunity for tailoring messaging to individuals, micro-segments and interest groups. The challenge here is to move away from the “yuck factor� (i.e. - yuck! How did you know that about me??) Mark Newton Head of Environmental and Regulatory Affairs, Samsung Electronics America @newton_csr

On the flipside, the advent of social media and broadband enables widely dispersed and seemingly disparate groups of individuals to rally, breaking down physical barriers plaguing conventional grassroots efforts. Campaigns are moving from expensive and physical to inexpensive and virtual. NGOs, consumers and special interest groups can now mobilize quickly, in greater numbers and without geographic or socioeconomic constraint. Despite fatigue from relatively clumsy early efforts to punish bad behavior, the potential to significantly reward brands by using social media as an organizing and collaboration tool is still relatively unexplored.


2 Responsibility recoil. Educated consumers that vote responsibly with their wallet are whom we strive to reach. But despite best efforts apathy still reigns. Corporate green washing, messaging overload and confusion about what matters has heads spinning. Data over the last 40 years shows that CSR sensibility resonates cyclically - it peaked in the early seventies, again around mid-2000 but has since trended downward with respect to other issues more front of mind among the public. This trend is likely to continue for the next several years as geopolitical and socioeconomic factors remain volatile making CSR communications all the more challenging. We must acknowledge the public distrust and cynicism that occurs in destabilized times. Despite all the good work by the socially responsibility investment (SRI) community to focus on building the business case, there is still little evidence that mainstream investors are tuned in. This work is still in its infancy and there is huge opportunity here. Successful efforts will position CSR as a contributing factor toward alleviating socioeconomic and geopolitical instability rather than as a competing priority.

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3 Flattening Earth. Global emerging “frontier� markets like MIST (Mexico, Indonesia, South Korea and Turkey), MINT (Mexico, Indonesia, Nigeria and Turkey) and CIVETS (Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa) are forecast by some to surpass BRIC (Brazil, Russia, India and China) and even approach western economic output by mid-century. A huge emerging global middle class comes along with that and with it the prospect of unbridled consumerism. What these countries have also in common are emerging and stressed social and environmental infrastructures that provide both CSR opportunity and risk. As the global economy taps into markets and production capabilities here, we will see an increasingly global and interconnected supply chain racing to lowest cost providers and an influx of new product categories. In the current paradigm, lowest cost is synonymous with insufficient lifecycle considerations, an inadequate safety net for workers and lax protections for natural resources and the environment. The market potential here is tremendous as is the opportunity to educate consumers and to produce responsibly. (More from Mark Newton at page 144)


Previous issues of Directions

For many years, science has been lurking in the background of the sustainability debate; biding its time, waiting for its moment to shine. It seems as if this time is now coming. The latest issue of Directions, Salterbaxter MSLGROUP's guide to trends and issues in sustainability communications, explores the exciting interplay between science, sustainability and strategy. Download the report at http://www.salterbaxter.com/directions-report-2015/

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SECTION I : OPPORTUNITIES

Priorities Change, Values Stay the Same At General Motors, our approach to sustainability is strengthening our company and providing customer benefits while building stronger communities and a better world through improved mobility.

David Tulauskas Sustainability Director, General Motors @davidtulauskas

We will increase the fuel efficiency and reduce our vehicles' environmental impact beyond anything anyone imagined even a few years ago. But we know our customers care about more than the cars. They care about how we build them, and how we engage with the world around us.


For example, we operate 122 landfill-free facilities and aspire to be a completely zero-waste manufacturer. Last year, we ended use of coal as an energy source in our North America plants and continue to invest in renewable energy around the world. We believe we're part of the solution to climate change, and we're the only automaker to sign the Ceres BICEP Climate Declaration stating that addressing climate change creates economic opportunity.

We will continue to see millennials looking to companies to take a stand on environmental issues.

and environmentally responsible products at every stage of their life, whether they are single or married or if they become parents.

It's a huge opportunity to create lifelong loyalty if you have products that millennials want with a company purpose and brand promise that resonates with their values.

Authentically communicating a company's purpose and sustainability commitment can pay dividends and increase customer loyalty for the long term.

If you get that mix right, you'll have them for life. Priorities change, but values stay the same. Conscious consumers will want sustainable

(More from David Tulauskas at page 114)

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SECTION I : OPPORTUNITIES

Re-defining Success in Business An interview with Marcello Palazzi People's Insights: Tell us about the mission of B Lab. Marcello: B Lab is a global organization dedicated to raising the standards of business and encouraging a new generation of “best for the world” companies across industries, at a time when entrepreneurship has become the de facto engine for well-being. There are huge opportunities - and some societal and planetary pressures - to turn enterprise into a greater force for good. Given the intense economic activity of our global world of 7.3 billion people, there is also huge opportunity to further tweak the balance of negative and positive externalities and impacts of business. We do this by offering businesses B Corp certification (which measures and compares performance), as well as advocacy, learning and education initiatives. Our B Impact Assessment tool is the first step in the certification process. The tool analyzes business models, governance, social and environmental performance and looks at 200 separate issues. Marcello is Co-Founder of B Lab Europe (B for Benefit) and is on a mission to turn B Corp into a global movement of “best for the world” corporations. A philanthropreneur and Co-Founder and President of Progressio Foundation, Marcello has led over 300 innovative ventures, projects and events in 30 countries, across the 4 P's: public, private, philanthropy, and people. @mpalazzi

B Lab has certified over 1,500 B Corporations in 43 countries. In addition, 3,000 businesses have registered as Benefit Corporations (legal entities) in the United States and Canada.

PI: What has drawn so many business owners to this movement? Marcello: It starts with leaders who are defining who they are and who they want to be. The world is led by many entrepreneurs who want to help shape a good life for many others and to create a legacy for themselves, beyond just making money. They try to do the best for themselves and for the world, and they introduce this culture within their businesses. For these leaders, B Corp certification is a natural next step.


Together, B Corporations are showing the world that there is a more evolved way to do business; that it is very possible to stay true to yourself, and society, in business and to do so in an ethical manner. So the driving factor is to be successful without causing direct or indirect harm to people and planet. There are also multiple concrete benefits to being a B Corp, in terms of identity, branding, reputation, ability to attract impact investors and other general benefits of being part of a global network that provides knowledge sharing and group rates for service providers.

PI: What is your vision for 2020? Marcello: We are creating a whole new class of companies that embody the “best for the world� spirit. This growing community could be supported by new entities such as, perhaps, a new chamber of commerce, a bank for B Corporations, B Corp programs with business schools and partnerships with municipalities.

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For example, we have partnered with the Mayor of New York and the New York City Economic Development Corporation to host the first “best for” program Best for NYC. It is a pilot project in which we are inviting New York City businesses to assess their performance and benchmark it against 20,000 peers. We are excited to offer similar programs to further expand the movement. Businesses that complete the Best for NYC Challenge and commit to seeking ways to improve can access business support tools and services and may be recognized as “Competing to be Best for NYC.”

http://bestfor.nyc/

The full B Impact Assessment tool measures a company's performance against 200 criteria, and enables the company to benchmark their performance against other businesses. 20,000 companies have taken the shorter quick impact assessment.

Image credit: sample B Impact report


We are creating a whole new class of companies that embody the “best for the world� spirit. Marcello Palazzi, B Lab Europe

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SECTION I : OPPORTUNITIES

Special:

Sustainability in Brazil A Competitive Advantage Experts from MSLGROUP Andreoli in Brazil point out that sustainability can be a competitive advantage for companies, with examples of Brazilian businesses that are leading in sustainability. With its continental size, abundant natural resources and a civil society aware of global social and environmental challenges, Brazil can play an important role in developing innovative solutions that create value for people and companies.

3 Sustainability initiatives that work In the corporate field, Brazilian institutions have benefited from being open and innovative in sustainability. Here are three examples of Brazilian companies that are seeing benefits to reputation, growth and competitive advantage.


1

A world leader in green plastic Braskem's development of a green plastic, sourced from sugar cane ethanol instead of the traditional fossil fuel petroleum, has paid off in many ways. This innovative biopolymer uses mostly renewable energy in its production process and captures CO2 from the atmosphere. Braskem is the leading producer of thermoplastic resins in the Americas and was recognized as one of world's most innovative companies by the U.S. magazine Fast Company in 2014. It is listed in the Dow Jones Sustainability Index and ISE, the sustainability index of the Brazilian stock exchange BM&FBovespa and is a signatory of the UN Global Compact since 2007.

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2

Growth fuelled by renewable plantations Fibria is the world's largest producer of eucalyptus pulp, with its operations based entirely on renewable plantations. In addition to its pulp business, it invests in renewable fuels derived from wood and biomass. This innovation has allowed Fibria to develop operational partnerships with leading companies abroad, expanding and multiplying business opportunities.

3

The reputation-case for business sustainability Brazil's largest bank ItaĂş Unibanco is the only Latin American bank that participates in the Dow Jones Sustainability Index since its creation and for 16 consecutive years. It has also been listed in the ISE index for 9 years, named the sustainable bank of the year in the Americas (Financial Times, 2012) and recognized as Brazil's most valuable brand for more than 10 consecutive years (Interbrand). As a consequence, the bank's reputation has strengthened, accelerating business and financial performance.


Strong governance can boost credibility in sustainability Nevertheless, there is still a lot to be accomplished environmentally and socially, and Brazil's greatest challenge in sustainability probably lays in one of its fundamental aspects: governance. Governance is essential to establishing credibility and trust among the company's strategic stakeholders, affecting its brand, reputation and economic results.

The power of incentives and recognition Incentives for corporate sustainability practices also include the recognition of outstanding companies, both domestic and multinational, that operate in Brazil. The ECO prize, promoted by the Amcham chamber of commerce, the Exame sustainability guide published by the business magazine Exame and the Sustainable Leadership Platform promoted by the consultancy IdĂŠia SustentĂĄvel are among initiatives that recognize and encourage sustainability on the Brazilian market. Companies such as ItaĂş, Fibria, Natura, Promon, AES Brasil and Embrapa, among others, stand out in their market and have become benchmarks in innovative sustainable performance initiatives.

Brazil is in the midst of a period that is putting governance to the test. In recent years, and particularly in 2015, major corporate groups operating in the petrochemical, infrastructure and construction industries, among others, have become targets of investigations into involvement in illegal dealings. The impact on the reputation, brand and economic value of these organizations has been visible and should have long-lasting negative effects.

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Sustainability is no longer an option Aware of this challenge, the business community has often scheduled the issue on the agendas of strategic discussion. But developing a sustainability strategy is not the same as developing a sustainable business. To simultaneously enhance financial performance and sustainability, it is necessary to constantly innovate in products, processes and the company's business model. In a period of economic challenges such as that Brazil is going through, developing a sustainable business strategy becomes an important competitive advantage for businesses, strengthening not only economic performance but also the brand and reputation. The focus on sustainable innovation is no longer optional and has become a strategic priority for all the companies, whatever the size, and for all the sectors. For more insights on Brazil, contact our team at MSLGROUP Andreoli at mslgroup.andreoli@mslgroup.com


The focus on sustainable innovation is no longer optional and has become a strategic priority for all the companies, whatever the size, and for all the sectors.

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Section II: Our Chance for Change: Disruptions in Action


Real Change is Possible The Charles River flows between Boston and Cambridge in the United States, and was notorious for being dirty. The river was so polluted that swimming in the Charles has been banned since the 1950s.

Aaron Bourque, Charles River Conservancy

People swam in the Charles River. For Fun. Boston Globe

Fast forward to today. Local agencies have made huge progress in cleaning up the river. The Charles is now considered swimmable many days of the year, and the Charles River Conservancy (CRC) is hoping to restore its potential for swimming on a permanent basis. The restoration of the Charles River demonstrates that real change is possible. Section II : Our Chance for Change: Disruptions in Action

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Unlocking the forces of business and consumer demand An interview with Sally Uren People’s Insights: What do you see as the top 3 priorities for businesses in the next few years? Sally: Here's what I'd like to see as their priorities. First, I'd love to see businesses creating innovative business models that can help them deliver more fully on their purpose. A company's purpose isn't selling stuff, it's about providing access to the things we need, nutrition, warmth, and even delight. In order to deliver on purpose, we're going to need to see some new business models. Second, I'd love to see businesses better understand how to do their bit to bring down CO2 emissions, because climate change is quite possibly the biggest threat we have right now. Third, I'd like to see businesses unlock their potential as a force for societal good. Sally is Chief Executive at the Forum for the Future with overall responsibility for delivering the Forum's mission to create a sustainable future. She works with leading global businesses, both in one to one partnerships, and also as part of multi-stakeholder collaborations designed to address system-wide challenges. @sallyuren

PI: We hear a lot about sustainability in the West. What is the potential in other regions? Sally: There are thousands and thousands of businesses listed on stock markets outside of the U.S. and Europe. The problem is they have not yet woken up to the potential that sustainability represents. In the work we do in Asia-Pacific, we partner with large organizations and conglomerates. Their potential to create massive change is enormous and they are really interested in sustainability. So that's the story of optimism. That's where the energy is going.


PI: What role can the end-consumer play in bringing about change? Sally: Consumers are one of the market levers that you need to pull to create change at scale. They’re not the only one and we can’t expect whole-scale behavior change to deliver the solutions that we need. But it’s really important. So, what we have to do is unlock the potential of brands to create the desire for more sustainable products. This can help unlock consumer demand which in turn will help brands accelerate their progress in delivering more sustainable products and services. The reality is that the shift we need to see will come from government, business, and civil society working together - that’s system innovation. It’s not going to come from any of those three working in isolation.

PI: What about millennials - what role might they play? Sally: Businesses tend to fall into two camps when it comes to millennials. There’s a camp that doesn’t understand this whole notion of millennials and is just not interested. Then, you have businesses that think more long term

and more creatively, and understand that millennials can be the big unlock for driving demand for sustainability. There’s often nowhere between those two views. But we’re probably placing too much hope on millennials. It’s quite easy to say oh let’s wait for millennials to unlock demand. That might actually be too late. Millennials aren’t the Trojan horse, they’re not the silver bullet - because there is no silver bullet. Whilst it’s easier to talk to millennials in many respects about this agenda, we should equally be focusing on unlocking demand from older generations, like baby boomers. We just can’t rely on millennials, that’s a high-risk strategy. It has to be everyone.

PI: Last question, which single green technology are you most excited by? Sally: Probably solar. I’m inspired by the huge number of markets where solar has now reached grid-parity. And, well, the sun is there - let’s harness it!

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Five Disruptions in Action In this section, our insights team highlights five broad trends that point to a real chance for change. We feature examples of initiatives led by businesses, organizations and people, and shine the spotlight on five inspiring businesses at the forefront of sustainability.

Nidhi Chimnani

Melanie Joe

Director, Research & Insights, MSLGROUP

Consultant, Research & Insights, MSLGROUP

@nidhichimnani

@melanie_joe


The future is here, it's just not evenly distributed. William Gibson

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1 MAXIMIZE RESOURCES From startups to well-established brands, businesses are constantly finding new ways to reduce their footprint and maximize their use of existing resources. Not only is this good for the planet, it is also good for businesses.

Circular Economy Sharing Culture Upcycling Spotlight: Levi’s Water<LessTM

Efficient use of existing materials keeps costs down. Re-use and recycling of materials helps reduce footprint and ensures a sound supply of materials in a resource-constrained world. Sustainable development is also good for reputation and engagement of all stakeholders. Governments and people are waking up to the potential as well. Governments are encouraging sustainable development and people are selforganizing to maximize their own use of products. Overall, there's an increasing recognition that there's wealth in waste.


The Mad Crab art installation at Fort Kochi, India, created with waste plastics that threaten the marine ecosystem.

Elena Mirage / Shutterstock.com

$500

$750

700,000

MILLION

BILLION

TONS

Value of the 7.5 million tons of extractable plastic in the oceans

Cost of producing the 1.3 billion tons of food that we waste globally every year

Amount of waste that Sweden imports, to provide heat and electricity locally

The Ocean Cleanup

United Nations

sweden.se

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1

MAXIMIZE RESOURCES

Circular economy Bringing resources back into the system

One of the ways we can maximize resources is by developing circular economies, in which products and by-products are systematically re-used, recycled or re-manufactured.

$1

100,000

TRILLION

NEW JOBS

Annual benefits that could be generated by 2025 for the global economy, if companies adopt circular supply chains

That could be created within the next five years, if companies adopt circular supply chains

WEF, the Ellen MacArthur Foundation and McKinsey

WEF, the Ellen MacArthur Foundation and McKinsey

�

This approach can boost economic growth and job creation, and is supported by organizations like the Ellen MacArthur Foundation and the World Economic Forum (WEF), large businesses including Cisco and Kingfisher, and increasingly, governments.

Our mission is to reveal the value in plastic waste. Pound for pound, plastic is worth more than steel. - David Katz, Founder and CEO The Plastic Bank


NEW INFRASTRUCTURE, DESIGNS AND MODELS

A CULTURE OF MAKING STUFF LAST LONGER

The circular economy calls for new thinking and significant change. For businesses, this might mean creating infrastructure to enable more recycling.

End-consumers too are becoming more conscious about the waste they produce. The popularity of peer-to-peer platforms and social media projects is helping fuel a slow shift away from today's use-and-throw culture.

For example, aluminum producer Novelis promotes consumer recycling of aluminum cans to help ensure a sound supply of used aluminum crucial for the company to meet its goal of using 80% recycled aluminum inputs by 2020. Coffee capsule producer Nespresso has introduced 14,000 collection points in 34 countries and doorstep collection in 15 countries to collect capsules for recycling.

For some businesses, circular economy goals can be achieved by re-designing products and services. For example, Philips started selling lighting as-a-service to cities and large corporate customers to manage their energy use and to boost end-of-life collection rates. Google is currently developing Project Ara a modular smart phone that enables people to replace individual modules to upgrade or repair their phones, rather than replace the entire device. Dell is experimenting with the use of bamboo, mushrooms and wheat straw to create green packaging that is renewable and biodegradable.

Platforms like eBay (and its local variants), Yerdle (funded in part by Patagonia) and Stuffstr (recipient of the Target Award at Sustainable Brands '15) encourage people to repair, re-use, resell, recycle or donate their stuff.

Cosmetics maker LUSH is piloting the use of Social Plastic for packaging plastic that has been recycled by The Plastic Bank and sourced from pickers in disadvantaged communities.

Levi Strauss minimizes the number of materials used in its Dockers Wellthread products to enable easier recycling.

Social media projects promote zero waste lifestyles (Tedx: Why I Live a Zero Waste Life) and minimalist fashion (Project 333).

Businesses are also investing in local municipal projects to keep recyclables out of landfills and return them to the economy Examples of initiatives include Closed Loop Fund and Marks & Spencer's investment in Somerset County.

In addition to saving on material costs, recycle programs can also unearth new streams of savings or revenue.

In addition, communities like iFixit support people who want to repair their stuff with free how-to-guides.

The Novelis evercan™ uses 90% of recycled aluminum and is the world's first certified high recycled content aluminum can sheet

A preview of Project Ara, a modular smart phone by Google, inspired by Phonebloks

Yerdle: How Many Items in the Average Home? 300,000!

For example, telecom provider Sprint avoided $1 billion in costs by using remanufactured phones as replacement devices in its handset insurance program. Electronics retailer Best Buy has collected 1 billion pounds of electronics and appliances for recycling at its stores, on behalf of electronics manufacturers and recyclers. Section II : Five Disruptions in Action | Maximize Resources

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Sharing culture Shifting from ownership to access

People's relationship with things have changed in recent years as a result of, among other things, the smart phone boom, the recession and concerns about the climate. It is now possible, acceptable and even practical for people to forgo ownership in exchange for access to other people's things (through rentals, swaps or donations). This exchange works for both sides - owners can monetize their idle assets and renters get access to goods at potentially lower rates. It's good for the environment too, as renters can avoid the environmental footprint of owning their own separate products.

113 MILLION The number of sharers in Canada, the United Kingdom and the United States - about 40% of the adult population Vision Critical and Crowd Companies


RECOGNIZING THE VALUE OF “IDLE ASSETS”

NEW MODELS OF CONSUMPTION

BUSINESS TO BUSINESS MARKETPLACES

The sharing economy builds on the concept that our unused stuff is potentially valuable to others.

Businesses are responding to people’s willingness to “share” or “access” by offering new, flexible formats of consumption. This is especially evident in the travel and fashion industries. In travel, businesses, and even cities, offer subscriptions to car-sharing (Zipcar in North America and Europe) and bike-sharing services (Vélib' in Paris).

The popularity of peer-to-peer marketplaces is inspiring similar online marketplaces for B2B exchanges.

In fashion, online websites offer rentals to individual clothing items and accessories, and even monthly subscriptions to entire catalogs.

Some businesses are also creating their own networks - the newly established Materials Marketplace enables 20 businesses in the United States to exchange and re-use industrial by-products.

Over the last few years, people have rented out everything from their spare bedrooms (Airbnb) and spare seats in their car (BlaBlaCar) to idle sporting goods (StokeShare).

The chase to identify and monetize more “idle assets” has led some people to their rooftops. Rather than letting their roofs 'stay idle,' people can use them to generate solar energy. This energy can power their houses and lower electricity bills, or be sold to solar grids, to generate income. To promote more people to switch to solar, some companies (like SolarCity) offer to front the cost of installing the solar panels.

For example, LE TOTE sends subscribers a ‘tote’ full of clothing to wear for a few days - people can buy clothes that they want to keep and return the rest to receive a new collection.

For example, Floow2 enables sharing of business equipment (such as construction machinery and mobile MRIs) and services.

Airbnb - the largest marketplace for accommodation, with 1.5 million listings in over 190 countries

LE TOTE - Always have something new to wear

In the physical world, a store in Athens called Skoros allows people to give or take used or unused clothes and goods, to promote a spirit of anti-consumerism.

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Upcycling Enhancing the value of existing products

The upcycling movement acknowledges that some value is lost during recycling - for example, the energy, water, coloring or labor used in creating the product. The upcycling approach is to retain the current value of the product, and to enrich it to give it greater value. This is a nascent concept - but given its potential to create great stories, it could become a popular one.

Recycling‌ I call it downcycling. They smash bricks, they smash everything. What we need is up-cycling, where old products are given more value, not less. Reiner Pilz


PRE-LOVED, SALVAGED, REFURBISHED, UPCYCLED!

CREATING NEW PRODUCTS AND SOCIAL GOOD

Artists are the natural champions of the upcycling movement, finding used or vintage products and re-working them to create pieces of art.

Southwest Airlines demonstrated the potential of upcycling to create more than just new products, with project LUV Seat. The airlines spent a year determining the best use of its stock of 43 acres of old leather seats, and finally decided to use it for social good.

Communities like Remade in Britain and, to some degree, Etsy offer a wide variety of upcycled ware - ranging from clothing and accessories to furniture and 'unique gifts.’

Some designers have also built businesses that specialize in selling products made from extra materials “rescued” from factories and manufacturers (like Looptworks).

Some of the leather was donated to workshops in Africa, where disadvantaged people were taught how to convert it into footballs, shoes, bags and wallets.

Project LUV Seat: Southwest Airlines upcycled old leather seats and added value to communities in Nairobi, Kenya, Malawi and the United States

These in turn were donated to local non-profits. Some of the leather was also given to Looptworks, to create premium duffel bags, tote bags and backpacks.

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Levi's Water<Less™

In 2015, Levi Strauss & Co. continued to reinforce its water stewardship through the release of our new Lifecycle Assessment (LCA) and the milestone announcement that we had saved more than 1 billion liters of water through Levi's® Water<Less™ process and other water savings efforts.

Michael Kobori, Vice President of Sustainability, Levi Strauss & Co. @KoboriGrillsCSR

The LCA announcement examined the environmental impact of LS&Co. products, probing into the environmental impacts of cotton in key growing regions, apparel production and distribution in a range of locations, and consumer washing and drying habits in key markets.

In conjunction with that announcement, we launched a consumer education campaign to help consumers understand the environmental impact of their washing habits. By taking the “Are You Ready to Come Clean?” quiz, consumers were able to find out how much water and energy they used compared with average consumers in the U.S., the U.K., France and China. Between World Water Day and Earth Day, consumers were encouraged to take action and make a pledge to wash their jeans less often. More than 25,000 individuals took the quiz and pledged to wash their jeans less often. (More from Michael Kobori at page 96)


ARE YOU READY TO COME CLEAN? TAKE THE QUIZ & PLEDGE TO WASH LESS.

START

The Levi Strauss & Co. quiz enables consumers to find out how much water and energy they used, compared with average consumers in the U.S., the U.K., France and China.

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2 CREATE POSITIVE HANDPRINTS

Purpose Create shared value Net positive Spotlight: Sodexo's Better Tomorrow Plan

Traditionally, organizations have created positive impact through CSR programs that promote local communities in which they operate, or through employee engagement activities that encourage community or environmental actions. CSR program continue to be important, and are increasingly becoming more aligned to the organization's raison d'etre - their purpose and especially their core business. In addition, businesses are exploring new ways to create positive handprints: choosing 'better' suppliers, creating shared value, leveraging new social trends (like peer-to-peer lending), and adjusting business models so that every consumer purchase leads to a 'good' outcome. Some businesses are also aspiring to achieve a net positive effect, where they contribute more to the environment and society than they take out of it.


83%

45

MILLENNIALS

MILLION

from around the world who want business to get more involved in solving social issues

Pairs of shoes donated by TOMS since 2006 as part of its one for one model

MSLGROUP's The Future of Business Citizenship study

TOMS

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Purpose Aligning people and business

An important first step for a business or organization is to find a purpose - one that is closely aligned with its core business and its people. This common purpose can help align the organization's activities and CSR efforts, and act as a rallying force for stakeholders. Millennials in particular expect purpose-driven activities from brands and are keen to participate as 'citizen partners'.

69%

�

MILLENNIALS When you have a purpose, inconsistencies start showing up - Eileen Boone on CVS's decision to remove all tobacco products CVS

Want business to make it easier for consumers to get involved in societal change The Future of Business Citizenship study


PURPOSE, PEOPLE AND BUSINESS

THE BUY AND GIVE MODEL

A clear purpose can provide a strong narrative to a brand's story and can act as a compass for its vision and future goals.

Shoe-brand TOMS launched a movement in 2006 with its Buy 1, Give 1 model - for every shoe it sold, TOMS committed to giving a pair to someone in need.

U.S. retail pharmacy CVS is a great example. The company recently demonstrated its commitment to the healthcare business by changing its name from CVS Caremark to CVS Health, and by removing all tobacco products from its shelves. CVS invited smokers to quit with them and mobilized thousands to try out smoking cessation products and counselling. Three months after it stopped selling tobacco, CVS posted a 13% revenue growth (for Q42014). Similarly, food chain Panera Bread’s commitment to good food has led it to publish a No-No List of ingredients it intends to phase out.

People can play a key role in helping a brand fulfill its purpose. For example, Starbuck’s community of employees and customers help it meet its ambitious goal of 1 million hours of community service per year. Ikea is realizing its sustainability goals by providing people with access to affordable energy-saving LED lighting products - in fact, Ikea just completed its switch to LED-only lighting inventory.

TOMS expanded this model to its subsequent businesses, and other companies like Skechers followed suit. The model has been tremendously popular amongst consumers - it guarantees that every purchase is linked to an act of social good. But the scale of success - millions of shoes donated - raised a serious concern.

For some organizations, the original Buy 1, Give 1 model might actually be appropriate - at least for now.

A year after it stopped selling tobacco in stores, CVS conducted a study to determine the impact of their decision on sales of cigarette packages and nicotine patch packages across U.S. retailers

For example, social enterprise Mealshare donates a meal for every qualifying dish bought at participating restaurants. Student-lending marketplace Common Bonds funds the education of a child in a developing nation for every degree funded on its platform.

Flooding disadvantaged markets with free shoes would harm local shoebusinesses, and doesn't address the core issues driving poverty in those markets. The model has thus evolved to Buy and Give - with donations varying to meet different needs. For example, TOMS' eye-wear business now gives sight by covering the cost of glasses, sightrestoring surgery or medical treatment, and its coffee business gives safe water to people in need.

Similarly, eye-wear seller Warby Parker supports NGOs that provide training in eye-care and affordable glasses. Waterless car wash Wype donates $1 to Charity:Water for every transaction. https://www.cvshealth.com/impact -of-tobacco-removal/

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Create shared value Investing in the future

The concept of Create Shared Value (CSV) was introduced in 2006 and offers a holistic vision for the role of business in society: development of communities is good for business. CSV promotes fair wages, skill training, sustainable environmental practices, investment in health, education, infrastructure and so on. These elements can help boost the long term sustainability of the business by increasing reliability of material resources, increasing operational efficiency and safeguarding human resources. Several large brands have embraced the concept of shared value and are driving large-scale social development, often in collaboration with international and local organizations.

�

$3-4 The value that Levi Strauss earns on every dollar invested in improving lives of factory workers

CSV focuses on how we can mobilize capitalism for social change‌ It is not about balancing stakeholders or behaving ethically, but rather seeing social problems as representations of business opportunities yet to be met

Levi Strauss & Co.

Professor, Harvard Business School and Co-Founder, FSG

- Michael Porter


SOCIAL DEVELOPMENT: AN INVESTMENT

TECHNOLOGY: A CATALYST

Shared value programs can be extensive and cover vast operations and geographies.

New technologies can help accelerate the speed and scale of social development.

Nestle has developed 38 CSV commitments, accompanied by policies, standards and auditing to ensure compliance.

For example, mobile banking service M-PESA, developed by Vodafone, makes financial services more accessible especially in rural areas. M-PESA has been most successful in Kenya, where 20 million people use it to send and receive money and to pay bills.

CSV programs are often designed for long-term benefit.

Technology has also enabled large scale peer-to-peer lending across geographies.

Another example is Cisco whose Networking Academy program trains 1 million people every year in ICT skills, to help meet the demand for ICT professionals. Cisco provides course curriculum and learning tools to educational institutions in 170 countries and has reached 5 million students since the academy's inception.

Last year, the HP Company Foundation launched a five-year partnership with Kiva to encourage HP employees to get involved. The foundation provides $25 credits to HP's employees to lend to borrowers. 150,000 HP employees have participated and have lent a total of $9.7 million. (Via: Sustainable Brands' The New Financial Metrics)

An overview of HP's Matter to a Million program, it's partnership with Kiva that encourages HP employees to make microloans to entrepreneurs

Since 2005, Kiva has enabled 1.3 million lenders to make micro-loans to 1.7 million borrowers in 83 countries.

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Net positive Amplifying the positive impact of business

The Net Positive approach lies at the forefront of sustainability and points to a future where business makes an overall positive impact on environment and society. A bold approach, Net Positive has already attracted several big businesses as early adopters. Organizations like the Forum for the Future, WWF UK and The Climate Group have created working groups around this concept to develop supporting principles, strategies and measurement.

10x

� Inspire and enable millions of customers to live a more sustainable life at home

The net benefit that Dell intends to generate from IT by 2020

Ikea

Dell


IN PURSUIT OF POSITIVE IMPACT

TRANSFORMING “OUR� FOOTPRINT

Dell embarked on its Net Positive journey with research studies to evaluate the potential of technology, and guide its own - and its clients' investments in infrastructure and IT.

In its commitment to be People and Planet Positive, Ikea considers the footprint of its products all the way from forests and fields, to its own operations and the homes of its customers.

For its first study, Dell partnered with the Arizona State University to understand the social, economic and environmental benefits of online learning, in terms of the graduate's future earning potential, decreased dependency on state welfare, and footprint savings on travel and university infrastructure. Dell is now studying the benefits of its own flexible work policies, and will soon expand its methodology to healthcare, logistics and municipal operations.

With goals to be resource and energy independent by 2020, Ikea is investing heavily in renewable energy, purchasing and managing its own forests, and sourcing raw materials from more sustainable sources. Ikea is also introducing products that are more energy and water efficient, and products that help reduce or sort waste.

Dell technology enables the design and production of sustainable products, like Green Toys, which has recycled 24 million plastic milk containers to create sustainable toys

Steve Howard, Chief Sustainability Officer at IKEA Group discusses the goal of becoming Forest Positive by 2020.

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Sodexo's Better Tomorrow Plan The strength of Sodexo's corporate responsibility effort arises from our mission. The Better Tomorrow Plan defines the strategy Sodexo is pursuing as a responsible company. The plan revolves around three pillars that provide a consistent and structured approach for all of our corporate responsibility efforts. The pillars are: + We Are - Our fundamental vision, mission and values

John Friedman Corporate Responsibility Communications Director, Sodexo, and author of PR 2.0: How Digital Media Can Help You Build A Sustainable Brand @JohnFriedman

+ We Do - Our commitments and initiatives + We Engage - Dialogue and joint collective actions with multiple stakeholders At Sodexo, we know that the only way to optimize and achieve our corporate responsibility commitments is to engage with key stakeholders, so Sodexo maintains an ongoing dialogue with our stakeholder groups.

+ First, our 422,000 employees who are the 'face' of Sodexo with clients and consumers and within their local communities. We know that success of our efforts depends heavily on our ability to engage with them. + Second, our clients - by supporting their sustainability strategies and contributing to strengthening their efforts and reputations - we are reaching beyond our own 'footprint' to make a real difference. + Likewise, as a company that touches the lives of 75 million people every day, we embrace the tremendous opportunity we have to help our customers to adopt more sustainable lifestyles. + Sodexo's collaboration with our suppliers and throughout our value chain was cited by RobecoSAM (in its 2013 Sustainability Yearbook) as one of the hallmarks of our continued sustainability leadership.


Reductions in waste that are observable over a five day period inspire continued actions and so WasteLESS Week actually encourages efforts all year long, which is our ultimate goal. John Friedman, Sodexo

Sodexo WasteLESS Week Sodexo runs this five-day campaign for our clients (and our own sites) around the world each October. It empowers consumers, clients and Sodexo employees to reduce waste by celebrating the benefits of wasting less food, water, energy, paper and raw materials - including cleaner air more natural spaces and helping share our planet's natural resources.

Through on-site materials such as posters, videos and activities, we showcase the tangible benefits people experience when they waste less. Using local information and data, the materials can be customized to show people how their actions have local as well as global benefits.

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3 COLLABORATE ACROSS BOUNDARIES

Open Innovation

Partnerships

Spotlight: Levi's: The Race to the Top

As businesses and organizations dive deeper into sustainability, it's quickly apparent that no one entity can solve today's pressing problems alone. Partnerships are key to inventing solutions, maintaining costs, driving scale and meeting common sustainability goals. After all, no business is an island. Businesses are striking partnerships with a range of organizations, competitors, governments, startups and individuals to achieve their sustainability plans. Some businesses, like Tesla, are embracing open source philosophy and are forgoing patents to encourage adoption and development of cleaner technologies. It's an exciting time for sustainability, we have many rules to re-write, together.


Image Credit: Tesla Motors

Image Credit: Tesla Motors

100 MILLION If you want to go fast, go alone. If you want to go far, go together.

The number of new vehicles produced annually and globally, much higher than Tesla's capacity of 35,000 cars per year

African Proverb

Elon Musk, CEO, Tesla

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Open innovation Crowdsourcing sustainability

Ten years ago, GE proved its theory that businesses can innovate faster if they partner with external experts, with the ecomagination challenge. The challenge invited inventors to share their best eco-friendly ideas for the chance to receive funding and advice from GE. Ever since, collaborative social innovation challenges have been vastly popular as consumer brands invited people to co-create products and flavors, and corporations offered to fund social enterprises. In sustainability, collaborative innovation manifests itself as innovation challenges, innovation communities and open source technologies.

Growth of GE's crowdsourced ecofriendly ecomagination portfolio versus GE overall GE

�

4x

You want to be innovating so fast that you invalidate your prior patents. - Elon Musk

Tesla


INNOVATION CHALLENGES, FUNDS AND COMMUNITIES

OPEN SOURCE TECHNOLOGIES

Businesses are increasingly crowdsourcing ideas around sustainability.

With the dangers of climate change upon our doorstep, we need as many people as possible working on new technologies. So when it comes to young clean technology patenting might not be the best approach.

GE’s open innovation challenges still continue today, promoting energy efficient technologies and affordable health solutions.

Brands also partner with innovation communities like Ashoka, OpenIDEO and Greenathon, and sometimes sponsor hackathons. These events bring together software developers, academics and other experts to find answers to social challenges in a limited amount of time.

Similarly, Unilever asks innovators to focus on a specific set of challenges and wants, such as better packaging and water-efficient shower experiences.

Mahindra inspires (and funds) Indians to become social entrepreneurs with its general Spark the Rise challenge and its more-focused Rise prize. H&M just announced a $1 million prize for innovations that help close the loop for fashion.

Coca-Cola, Dell, HP and several other brands have organized innovation challenges to encourage young minds to address today's issues (more in our People's Insights report on Collaborative Social Innovation).

Indeed, Tesla decided to open its electric car patents to accelerate the industry's shift to electric cars.

The $1 million Mahindra Rise Prize incentivizes people to invent solar solutions tailored for the everyday Indian

Soon after, Ford offered a licensing option for its electric car patents, and Toyota opened up patents around its hydrogen fuel cell technology.

Challenges can vary greatly from finding solutions for Cairo’s traffic problems to helping reduce food waste. In addition to funding, businesses can offer innovators a chance to pilot or scale their inventions. For example Coca-Cola Founders program invites entrepreneurs to come up with ideas that can leverage CocaCola's global infrastructure.

Another technology that has benefited from the lack - or rather, lapse - of patents is 3D printing. 3D printing technology was invented in the '80s but only proliferated last year when its original patents expired. The technology is now largely open-source, much more affordable and very sustainability-friendly. 3D printing eliminates the majority of waste from the production process, and one of its printing materials is recycled plastic waste.

The Plastic Bank created the world's first 3D printing filament from ocean plastic, and made the technology open source

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Partnerships The amplifier effect

Public-private partnerships remain a significant piece of the puzzle. Non-profit organizations offer a wealth of information, expertise, experience and local contacts. They are crucial partners in implementing projects. Cities can be promising partners as well, especially as they seek new solutions to tackle growing populations and rapid urbanization. In the near future, we might even see businesses partner directly with concerned citizens. People have used the internet to self-organize and to achieve scale - last year's Ice Bucket Challenge and the recent Greek Bailout Fund indicate that people are beginning to realize their potential as a collective force.

� Partnerships offer an amplifier effect, where one plus one equals three. - Michael Dickstein HEINEKEN

58% sustainability experts that believe that multiactor collaborations, including governments and NGOs, are the most effective approach to sustainability GlobeScan SustainAbility Survey


STEWARDSHIP PROGRAMS

CO-OPETITION

POWER OF PEOPLE

Partnerships are vital to developing global stewardship and advocacy programs.

Beyond working with experts and organizations, businesses are partnering with each other to drive industry-wide progress and to shape their entire supply chains.

Most actions involved in sustainable development are complex and take years to implement. At the other end of the spectrum, some actions are straightforward and simple - easy for everyone to do, but not yet sustainable.

After fifteen years of working with Conservation International, Starbucks now gets 99% of its coffee from ethical sources.

For example, businesses in the apparel industry are collaborating to reach zero discharge of hazardous materials (ZDHC) and grow cotton in a more sustainable manner (Better Cotton Initiative).

Today, water conservation and stewardship programs are a key focus. For example, Heineken is working with the United Nations Industrial Development Organization (UNIDO) to develop water stewardship initiatives at breweries in water-scarce regions. Coca-Cola and WWF have co-developed water sustainability goals for 2020. Levi Strauss & Co. is working with Water.org to raise awareness about water issues, inviting people to Go Water<Less™.

Public private partnerships benefit both sides. Businesses offer the expertise, and cities offer the chance for implementation. A good example is IBM's Smarter Cities Challenge. Since 2010, IBM experts have worked on-ground in 116 cities, to find ways to make the cities smarter and more effective.

They are also developing measures for the supply chain (Sustainable Apparel Coalition), and investing in building safer factories (Bangladesh Accord), to name a few.

Beyond apparel, companies like PepsiCo, Red Bull, Coca-Cola and Unilever collaborated to create Refrigerants, Naturally! to reduce greenhouse gas emissions from their point-of-sale refrigerators and freezers.

Independent organizations like The Sustainability Consortium, The Partnering Initiative and Forum for the Future help drive business collaboration for sustainability.

Take for example the ALS Ice Bucket Challenge. In 2014, a small group of friends created videos challenging each other to donate money to find a cure for ALS or throw a bucket of ice water on themselves. By the end of the summer, 17 million people had uploaded videos of themselves taking the challenge and 3 million had donated to the ALS Foundation. The Foundation received a record $100 million in donations in August 2014, up from the $2.8 million it received at the same period in 2013. Separately, in 2015, British citizen Thom Feeney created a crowdfunding campaign, the Greek Bailout Fund, to help Greece pay off its IMF loan installation of €1.6 billion. If every resident in the E.U. donated €3, he speculated, the campaign would meet its goal. In the next 8 days, 108,000 people pledged €1.9 million to the fund. Not nearly enough - but a strong indicator of the power of people. These early successes indicate an opportunity for sustainability leaders to harness the power of people, and also a challenge how can we make this behavior more frequent and reliable?

Starbucks' 15 Year Journey to 100% Ethically Sourced Coffee by Conservation International

The Better Cotton Initiative (BCI) is supported by global brands, large farms and environmental organizations. 11% of the world's cotton is now Better Cotton grown with less pesticides and less water.

Here's How the ALS Ice Bucket Challenge Actually Started by TIME

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Levi's: The Race to the Top For many years, detractors have characterized the apparel industry as being in a “race to the bottom.� Historically, competition has been driven by lowering costs with too many markdowns and fast fulfillment, rather than by high-quality products and value. When competition centers solely on price and speed, integrity and ethics become a lower-order concern. Environmental and labor standards become a second thought. Ultimately, in the race to the bottom, no one wins.

Michael Kobori, Vice President of Sustainability, Levi Strauss & Co. @KoboriGrillsCSR

The good news is that some in the industry have realized this issue and recognized it as a business opportunity. Like-minded groups have formed organizations that collaborate to improve sustainability performance in the industry, such as the Sustainable Apparel Coalition. Similarly, the Better Cotton Initiative reduces water and chemicals used to grow cotton and to date has improved the livelihoods of over one million farmers. The International Labor Organization's Better Work program has improved factory conditions and labor rights for over one million apparel workers.

These collaborations are demonstrating that the industry can act to slow the race to the bottom and improve labor and environmental conditions. What is even more encouraging is that some companies are emerging from these collaborations to compete on sustainability. At Levi Strauss & Co., our Water<Less™ products have saved more than 1 billion liters of water. And our Worker Well-being initiative is helping our vendors establish sustainable solutions to worker needs such as financial literacy and reproductive health and are reaching 50,000 workers. Other brands are undertaking similar sustainability initiatives. I believe this competition is the harbinger of a race to the top creating better working conditions, reduced environmental impact, and financial sustainability for vendors and the people who make our products.


What is even more encouraging is that some companies are emerging from these collaborations to compete on sustainability. This competition is the harbinger of a race to the top. Michael Kobori, Levi Strauss & Co.

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4 CHANGE BEHAVIOR

The cool factor Gamification Spotlight: Heineken: Brewing a Better World

While products are made at factories and sold at stores, they are ultimately used and discarded by end consumers. Therefore - and perhaps more so for some products - a significant footprint lies with the people who use or misuse them. To be truly sustainable, to reduce footprints and establish a circular economy, it's important to involve people in the sustainability agenda. To inspire people to change their behavior and adopt new habits, businesses need to educate people about the consequences of their actions, guide them towards new simple actions and provide constant positive reinforcements. This calls for a significant shift away from today's communications in which people are used to hearing they should buy more, own the latest, and upgrade to the newest.


66%

� Take this jacket that I'm wearing... Half of the impact of this jacket on the planet, over its lifetime, is with Patagonia that made the jacket. The other half is with me, the person that bought it, and how I use and care for it. - Rick Ridgeway, Vice President of Environmental Affairs

People surveyed believe that we, as a society, need to consume less and consume better to safeguard the environment

Patagonia

BBMG, GlobeScan and SustainAbility (2012)

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CHANGE BEHAVIOR

The cool factor Enabling and inspiring new behavior

The first step to changing behavior is defining the new behavior - what we want people to do. This can range from asking people to recycle, reuse or reduce their consumption, to asking them to buy sustainable products. The simpler this action and the cooler it is perceived to be, the more likely people are to adopt it.

7.7 MILLION Items of clothing that Marks & Spencer customers donated for recycling and kept out of landfills from 2012-2014, as part of its Shwopping initiative Marks & Spencer


ENABLING NEW BEHAVIOR

MAKING IT COOL

Marks & Spencer asks people to “Shwop,� that is, to donate an item of clothing or an accessory every time they purchase something new from Marks & Spencer. People can drop off items at Shwop Drops which are now a permanent fixture at Marks & Spencer stores in the UK. These items go to Oxfam who resells them, sends them to developing countries or recycles them to ensure the items stay out of landfills.

Businesses and celebrities are using the power of their brand to create excitement and unlock purchase intent around sustainable products.

Similarly, H&M and Uniqlo too have global garment collection and recycling initiatives.

Similarly, musician Pharrell Williams has released a line of denims made out of recycled plastic, and musician will.i.am partnered with Coca-Cola to launch Ekocycle - a range of products made from recycled plastic and aluminum.

For example, Adidas recently introduced a concept shoe created out of plastic salvaged from the oceans. The shoe looks great and has received significant media coverage and positive feedback.

Some brands, like Heineken, ask people to buy less - to encourage more responsible use of their products. Heineken launched a movement to make moderate consumption cool with campaigns like Sunrise ('Sunrise belongs to moderate drinkers') and Dance More, Drink Slow with DJ Armin Van Buuren (nights are more enjoyable when you are in control).

Marks & Spencer explains the concept of Shwopping

Pharrell Williams presents RAW for the Oceans

Nike collects worn out shoes, shreds them and re-uses them in new products. Patagonia encourages people to swap clothes directly amongst themselves, through in-store events, apps like Yerdle and even on eBay.

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4

CHANGE BEHAVIOR

Gamification Rewarding good behavior

Once people have adopted a new behavior, it's important to reinforce it. Positive reinforcements include monetary incentives like discounts, and elements of gamification like points, badges, challenges and leaderboards. Dashboards and apps can help people track their behavior, compare it with others and integrate new behaviors into their personal or work life. Actual games themselves can hook people in and spread awareness or drive virtual behavior. After all, games are fun, social and promote healthy competition.

$1

47.6

BILLION

MILLION

the amount that Opower customers saved in their energy bills, after learning how their usage compared to that of their neighbors

the number of times Starbucks customers brought their own tumblers or mugs into stores - about 1.8% of all beverage transactions

Opower

Starbucks


POSITIVE REINFORCEMENTS

Initiatives that help people save or earn money can be quite effective. Starbucks offers customers a 10 cent discount for using their own re-usable tumblers or mugs for beverages, and has seen tremendous success. But it has struggled to boost customer adoption beyond 2% - proving just how difficult it can be scale up behavior change.

It helps if the pay-off is higher. For example, Recyclebank and Keep it Clean collect people's recyclables and reward them with points which can be redeemed for shopping vouchers.

Opower analyzes people's energy consumption, and compares it against their neighbors and neighborhoods. This tactic has encouraged people to reduce their energy consumption by a total of 6 terawatt-hours for total savings of $1 billion.

ENGAGING EMPLOYEES

WaterSmart replicates the Opower model, but focuses on water. As home automation picks up, this model could be applied to more specific areas of consumption.

Chevrolet Volt encourages people to drive in a fuel-efficient manner with a widget on the car's dashboards. Drivers know they are driving well, in real-time, if a green ball stays in the center of a rectangular gauge. Honda, Nissan and Ford offer similar features in their cars. Other interesting models include the Speed Camera Lottery which seeks to reward drivers that are obeying speed limits (instead of penalizing bad behavior).

Some companies use gamification to engage employees around sustainability and CSR. WeSpire builds employee social networks to support corporate initiatives and promote positive impacts. The WeSpire dashboard lets employees track their own resource consumption or CSR actions, compare this against their peers and see who is leading in the group.

MGM Resorts International uses this platform to encourage green actions among its employees and to organize competitions between its 17 resorts. The company has tracked considerable positive impact - 19,500 employees (about one-third) have participated and carried out 1.4 million green actions. To reward these actions, participation is linked to the employee bonus pool.

Alex Laskey, Founder of Opower, explains how behavioral science can lower energy bills

WeSpire inspires employees and organizations to drive measurable, positive impact

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Heineken: Brewing a Better World What does a better world look like to one of the world's largest brewers? A world where beer is brewed using the power of the sun. A world where breweries are carbon neutral and replenish water sourced from local communities. A world where people dance more and drink slow, and responsible drinking is cool. At HEINEKEN, this world is already becoming a reality.

Michael Dickstein, Director - Global Sustainable Development, HEINEKEN @MichDickstein

As part of it corporate social responsibility strategy, Brewing a Better World, HEINEKEN is addressing today's big issues across its global network, identifying successful solutions and finding ways to scale up.


There is a close link between what our business is, what our stakeholders expect from us, and where we focus our efforts. Our CSR strategy is aligned to support our business for the short, mid and long term, and to do so in an authentic and credible way. We can solve the big issues of our time only through partnerships. Partnerships offer an amplifier effect, where one plus one equals three. Tackling Water Scarcity Worldwide: A partnership between HEINEKEN and the UN Industrial Development Organization

- Michael Dickstein, Heineken

Gรถss Brewery in Austria: The world's first large brewery with net zero CO2 impact

Dance More, Drink Slow: An experiment promoting moderation, with DJ Armin van Buuren

Wieckse Beer: Produced entirely by Solar Energy from 3,000 panels on the rooftop of the brewery in Den Bosch, Netherlands

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5 MAKE CLEAN ENERGY

A cleaner today Energy of tomorrow Spotlight: UGE - Opportunity China Spotlight: Chevrolet's #CleanEnergyU

The majority of our energy today is used for transport, electricity and heating, and comes from fossil fuels (oil, coal and natural gas). Fossil fuels are far from sustainable - they are a limited resource that we are consuming at an accelerating rate and they are the major source of carbon emissions. That's why clean energy is top of the agenda. For the sake of people, planet and profit, it's crucial that businesses develop a reliable supply of renewable and clean energy. Savvy businesses (and governments) are making significant investments and steady progress in this area. But it's important to note that the switch to clean energy will take time. In 2013, renewable energy provided just 19% of global energy consumption, according to REN21 (the figure is much smaller for wind and solar). Yes, investment, capacity, awareness and tech efficiency are growing - but amidst an environment of uncertain policies and low oil prices. The mandate for business (and governments) is thus two-fold: invest in developing clean energy. But also find ways to make fossil fuel usage much more efficient and cleaner during our larger transition. Last, businesses must acknowledge public concerns around fossil fuels. There is a strong movement led by activists and concerned citizens to pressure businesses and funds to divest from fossil fuels. In addition to pushing several prominent institutions and individuals to divest, this movement has prompted some to reinvest - to pledge funds to address the threat of climate change.


$250 BILLION

24.2%

New global investment in renewable power in 2013 (investments are predicted to stay at high levels through 2020)

Walmart's global electricity needs that are currently supplied by renewable sources. Walmart's goal is to get 100% of its energy from renewable sources by 2020

International Energy Agency

Walmart

$2.6 TRILLION Fossil fuel assets that over 460 institutions have committed to divest

Go Fossil Free

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A cleaner today Reducing negative impact

Innovative businesses and start-ups are investing in methods to lower carbon emissions, increase energy efficiency and capture carbon for storage or re-use. Meanwhile, readily available products like hybrid and electric cars, LED lighting and recycled products are becoming increasingly popular.

72,000

8 MILLION

The number LEED certified building projects across 150 countries. (LEED buildings are designed to make efficient use of energy, water and materials)

The number of hybrid cars that Toyota has sold since launching the Prius in 1997

LEED

Toyota (August 2015)


FOSSIL FUEL DIVESTMENT

TRANSITION TO A LOW-CARBON ECONOMY

The United Nations is pushing governments to peak their carbon emissions in the next few decades, and is supporting an activist-led movement to Go Fossil Free.

Industries as diverse as energy, transport, steel, built environment and food & beverage are investing in projects to increase their energy efficiency and lower emissions.

Activists are targeting big businesses, funds and prominent individuals to freeze any new investment in fossil fuel companies and to divest from fossil fuel equities and bonds.

For example, steel companies such as China Steel and Arcelor-Mittal are working with carbon recycler LanzaTech to capture carbon rich waste gases produced in the manufacturing process.

The movement scored a big win earlier this year with Norway’s Government Pension Fund Global agreeing to divest $8.4 billion from coal companies.

People-led movements are catching steam in other areas related to climate change. In 2015, 900 Dutch citizens and the Urgenda Foundation successfully sued the Dutch government for not taking enough measures to prevent climate change.

LanzaTech converts this waste into biofuels and chemicals, and also uses the carbon to create plastic, nylon and rubber.

Some companies are creating circular economies to meet some of their energy needs. For example, the Ben & Jerry’s factory in the Netherlands converts ice-cream waste into biogas, which powers the production of more ice cream. Similarly, Heineken’s Göss brewery in Austria uses spent grain to create biogas. Nestle Water is currently building a biogas plant in Switzerland, which will be partially fuelled by used coffee from sisterbrands Nescafe and Nespresso.

LanzaTech recycles carbon for a cleaner tomorrow. In addition to creating biofuels, LanzaTech sequesters carbon into new products like plastics and rubber promoting a circular economy.

Six major oil companies recently wrote an open letter to the United Nations, urging a global system to price carbon and offering their expertise as support. Businesses are also engaging policy makers to introduce global standards and policies.

Concerned citizens gathered at 450 events in 60 countries to show their solidarity for the fossil free divestment movement (photo: 350org on Flickr)

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Energy of tomorrow The revolution has begun

Governments, organizations and businesses are making big investments in solar, wind, hydropower, geothermal energy, biofuels and batteries, and are unveiling new projects at an inspiring speed. From oil ministries in the Middle East, airports in India, breweries in Europe and data centers in Silicon Valley – the clean energy revolution is a global one. There also seems to be a movement to “own” energy, as businesses seek to generate new clean energy across operations and boost reliability of energy in developing markets. Beyond industrial use, there is some speculation that clean energy can leapfrog traditional energy in rural areas – people may have access to solar energy before they have access to traditional grids. In particular, solar lanterns can be useful in situations where access to the grid is disrupted, during natural disasters or conflicts.

100%

3

100,000

MILLION All of Apple's data centers run on 100% renewable energy, since 2012

Apple

Gallons of low-carbon renewable jet fuel that FedEx Express and Southwest Airlines have each committed to purchase, per year from Red Rock Biofuels FedEx Express and Southwest

reservations of Tesla's Powerwall and Powerpack batteries between May to August 6, 2015, Q2 2015

Tesla


MAKE YOUR OWN ENERGY

Business that are leading the pack include large retailers like Walmart, tech giants like Apple and Google, and partners of the RE100 movement like Marks & Spencer, Ikea, Unilever and Infosys. These businesses have visions to go 100% renewable across their global sites. They are achieving this through a mix of procuring clean energy, installing solar panels on their rooftops, operating their own wind turbines, investing in solar and wind farms, and - depending on their locations setting up geothermal and hydropower projects. Some, like Infosys, are also investing in carbon offset initiatives to achieve ambitious carbon neutral goals on schedule.

Companies like UGE and SolarCity help businesses, organizations and governments develop their own clean energy infrastructure.

TOWARDS BETTER ENERGY STORAGE

The global aviation industry is also inventing and investing in alternate sources of energy, as airlines seek to reduce their emissions.

Batteries that are good at storing energy - and particularly solar energy - can play a huge role in the future of clean energy.

Cathay Pacific and United Airlines have invested in biofuel producer Fulcrum, which converts waste into low-carbon biofuel.

Companies like Solvay are pushing the boundaries of today's batteries with projects like Solar Impulse 2.

British Airways is building a similar plant to convert waste into biofuel. Virgin Atlantic is developing a jet biofuel that uses recycled carbon.

Tesla is leveraging its know-how in electric car batteries and moving into the energy storage space with batteries that look good and are simple to use. These batteries are available for both industrial and residential use and can store solar and also conventional energy. This could open up new opportunities for utility companies who can use the storage for backup power, load shifting or peak load management.

Brazilian airline Gol and Lufthansa are experimenting with fuels that are blended with farnesane, a renewable fuel developed from sugar cane.

Southwest Airlines and FedEx Express are purchasing low-carbon fuel developed from woody biomass. Some companies are also conducting early stage experiments in the future of clean flight - with electric-powered planes (Airbus E-Fan) and solarpowered planes (Solar Impulse).

Mercedes-Benz and Daimler AG have also announced their entry into energy storage with solutions for personal use and for small business use.

Solar Impulse 2 is an aircraft powered only by the sun. It is attempting the First #RoundThe-World Solar Flight, to prove that the impossible is possible. Solar Impulse 2 has made it halfway to Hawaii, but due to damaged batteries will recommence flight in 2016.

In May 2015, Tesla Introduced Tesla Energy with Powerwall and Powerpack - residential and industrial batteries that can store solar or conventional energy at peak sunlight or at lowest utility rates - for use during peak hours and evenings.

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UGE: Opportunity China UGE is a global leader in the business of distributed renewable energy with over 2,000 projects in 100 countries. Historically, our primary focus has been on generating energy locally, on-site, through vertical access wind turbines.

Rosie Pidcock, Senior Business Development Manager, UGE @rosiepidcock

These are safe, emit lower sounds and are higher in efficiency. Recently, we pivoted to offer broader end-to-end solutions for renewable energy - wind and solar. UGE services include financing, turnkey solutions, assessments, installation and maintenance of renewable energy assets. In China, I work with Fortune 500 companies to help them meet global green standards through solar rooftop and solar lighting solutions. The opportunity in China is enormous. From a policy perspective, the government has made much progress in the last year and a half. There is significant support for businesses that want to generate renewable energy here.

Here are two tips to get you started: 1. Explore the costs involved and understand that zero cost financing for renewable energy is available in China, even in B2B. There is a need for much more education to support decision makers in choosing renewable energy. 2. Understand that the Chinese market can help you meet your global sustainable goals. For example, Walmart has a goal to go 100% renewable - solar in China can help achieve this goal. China is more than just the biggest provider of materials; it is also a big market for generating and consuming solar energy. There is tremendous opportunity - the market is uncaptured. To learn more about setting up renewable energy projects in China, contact Rosie at rosie.pidcock@ugei.com


Bayer Material Science's custom solar system at its Shanghai office was designed by UGE. Combined with three off-grid solar streetlights, the system eliminates 874 metric tons of carbon dioxide from Bayer's annual carbon footprint.

Image Credit: UGE

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Chevrolet's #CleanEnergyU Chevrolet supported 11 colleges from Portland to Boston as part of the brand's voluntary Clean Energy Campus Campaign. These campuses are now selling carbon credits, an opportunity Chevrolet created with the help of other environmental stakeholders. Money earned goes toward their continued investment in clean energy technologies, and Chevrolet retires the credits to benefit the environment, meaning they will never be used to offset emissions related to its vehicles or operations.

David Tulauskas, Sustainability Director, General Motors @davidtulauskas

The initiative gave Chevrolet an opportunity to engage with its communities, change perception of the brand, and spark conversations among millennials on issues they care about, through the hashtag #CleanEnergyU.This conversation uncovered why a clean energy future matters to millennials and how they are helping us get there. It gave students a voice and provided Chevrolet with great insights.


The brand promoted Twitter chats, told the story through Instagram, published student blog posts and curated the conversation on Storify. We need to be talking about climate change in terms of technologies that are inspiring and future scenarios we want for the next generation. Take a clean energy future for example. It speaks of innovation, advanced technology, clean air and blue skies, something that is better. If people can buy into that, they can think about the role they can play.

David Tulauskas, Sustainability Director, General Motors at our panel on climate change at Sustainable Brands 2015

That's what we helped demonstrate with Chevrolet's #CleanEnergyU conversation-we got students talking about their personal vision for a cleaner energy future and what they plan to do to help us get there.

Image Credit: Chevrolet

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#MakeitWork

Re-negotiating the UNFCCC framework Recommendations from Sciences Po's student negotiators In May 2015, Sciences Po - the Paris Institute of Political Studies - organized a simulation of COP21 to imagine and test an alternative format of climate negotiations. 200 students formed 41 delegations and negotiated over three days to find a way to #MakeitWork.

Alice MarĂŠchal

Karen Verlinden

RĂŠmy Ruat

Master in European Affairs, Sciences Po Paris

Master in European Affairs, Sciences Po Paris

Master in Politics and Science of the Environment, Sciences Po Paris

On behalf of the student team who organized the Make it Work simulation

While the Conferences of the Parties (COPs) have given rise to high hopes, they have failed to live up to these expectations while continuing immense deceptions regarding the difficulties we face collectively with respect to the climate challenge negotiations. We emerged from our simulation with clear recommendations and also serious questions about the potential of the current UNFCCC negotiation framework.


Recommendation #1

Recommendation #2

Flexibility will make space for 'Real' Negotiations

A more Holistic Approach that considers both Cause and Consequence

The UN system of governance has become a very slow machine, unable to deal with the major crises, transformations and accelerations that the world is facing. We believe this to be partly due to the rigidity within the UN system; the procedures and protocol are not flexible thus preventing any advances. Procedure and protocol take over substantial issues.

The issues in the COPs are extremely technical, and tend to disconnect the consequences of climate change from its causes. The approach is not holistic enough: crucial issues like agriculture or commerce are not explicitly dealt with. If for example transport for international trade is responsible for such big contributions to global greenhouse gas emissions, why is there no representative of the WTO at the negotiation table?

Within our simulation, we began with a formal structure but allowed delegations the possibility to move away from it if they believed it fit to do so. Flexibility, according to us, was key to leave space for real negotiations to take place. This went as far as to allow delegations to negotiate without the participation of the UN secretariat for 2 days!

Image Credit: #MakeitWork

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Recommendation #3 Involve all Key Actors in Negotiations This brings us to a third issue; the actors involved in the negotiations. In the UN framework, only nation-states are given the right to negotiate and vote. In order to better represent real interests on climate change issues, we decided to introduce new actors never before given an equal voice to states in climate change negotiations at the negotiating table. These new actors can be divided into three categories: natural entities (e.g. forests, stranded oil assets, endangered species), local specificities (e.g. the Sahara, indigenous people, Amazonia), and transnational networks (e.g. international regulatory bodies, internet, youth). It is crucial to directly involve actors who can have a decisive impact in tackling climate change. We would like to highlight their contribution to the problem, but also, the important role they could play to find solutions together.

Recommendation #4 Nation-states Should Not be Treated as Homogenous Entities The Westphalian point of view that is framing the UN system postulates that nation-states are relevant and homogenous entities with common interests to defend, an idea which is questionable. Are US negotiators really defending California's interests? Would California defend the same position on its own if given the opportunity to do so?

Image Credit: #MakeitWork

We wanted to add a level of complexity in the simulation so as to better represent how climate change issues are dealt with. By having various stakeholders and interests represented within each delegation, we wanted to bring together all levels of negotiations in one forum (i.e. national, regional, and bilateral). On the second day of negotiations, delegates representing the U.S. government, an ocean expert group and an NGO from the Stranded Oil Assets delegation were, for example, negotiating on the future of fossil fuel extraction in the arctic.


Recommendation #5 Replace 'One Size Fits All' with a Two-Step approach The use of global modeling contributed to spreading the idea according to which we “are all in the same boat” hence implying that the global level is the only relevant scale for action. The “one size fits all” solution that negotiators are trying to find through a logic of consensus is leading to agreeing on the lowest common denominator. We recommend instead for the negotiators to take a two step approach: first, to look at where they themselves want to be in 50 years time in very practical terms (i.e. “what will your children eat for breakfast?) and second, who they would have to cooperate or coordinate their action with and what that action would include. This would lead to a web of agreements at different scales, which - when combined together - would reveal the long term demands of tackling climate change and the necessary action to put us on the path to respecting the 2°C limit. Image Credit: #MakeitWork

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The solution is not so simple as a “New Framework� Many participants were frustrated by the procedures. Their newness to the UNFCCC negotiations allowed them to be critical with the procedures, something which we suspect most professional negotiators at the UNFCCC are no longer able to do. However, moving away from the traditional UNFCCC framework was not consensual. Neither was the work on finding convergence between the visions of the parties. While some wanted to innovate within the model, others thought it was necessary to destroy it to be able to move forward. The fact that we were young meant we were optimistic and still quite driven by the idea that we can still change things for the better.

In the end, the delegates were open minded enough to integrate these two approaches. This is not something that we can see happening in real life. It is impossible for us to imagine that UNFCCC negotiators would be willing to work together or find middle ground with people wanting to destroy the UNFCCC framework. As young students we had the luxury of raising the relevant issues and actually taking determined actions to address them. Even if climate negotiations were reshaped according to these recommendations, it would still have its limits. To counter these, actors, especially private companies, should think about developing appropriate bottom-up approaches, form networks and find common solutions that can take the form of micro-level voluntary cooperation.

What we really need is for the entire world to be connected through innumerable interconnections on any imaginable level, and we are excited about other actors joining this dynamic.

Image Credit: #MakeitWork

For more on the #MakeitWork Simulation, visit http://www.cop21makeitwork.com/, read the Make it Work report (in French) and the press coverage review (in French)


While some wanted to innovate within the model, others thought it was necessary to destroy it to be able to move forward. The fact that we were young meant we were optimistic and still quite driven by the idea that we can still change things for the better.

Image Credit: Shutterstock

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It's Time for Transformation:

Everything needs to be questioned Pascal Beucler, SVP & Global Chief Strategy Officer, MSLGROUP

The Future of Business and the Future of Sustainability are the two sides of the same coin: it's all about combining profit and purpose to deliver a better performance and value for all. Over the past two decades, sustainability has become a core business concern that is fundamental to long-term objectives and value creation. Businesses that address global concerns and put sustainability at the heart of their overall strategy will benefit from improved cost margins and an enhanced corporate image. I am deeply convinced that there's no better Reputation Shield than this, which actually insulates the organization from future risks and fosters robust relationships with customers, employees and communities. @pbeucler


Over the past two decades, sustainability has become a core business concern that is fundamental to long-term objectives and value creation.

There's no doubt that sustainability challenges, strategies, trends and perspectives are shaping all business models. The circular economy, shared value, net positive‌ these are innovative ways to combine business performance and global citizenship, and to create a new dialogue on the role of business in society. It's anything but easy for long-established businesses to transform their way of working and sometimes radically. The transition from a classical “profit and shareholders firstâ€? approach to a 'value-for-all' approach is a complex one, and involves everything from tackling resource wastage and climate change, to enabling management to engage with society and prepare their departments for future threats and opportunities. Everything needs to be questioned, in a context where the combination of digital transformation and environmental changes place serious pressure on all businesses. All the disruptive and effective innovations, and new business models we've shared in this report show the way, brilliantly. There's a race to the top and this is widening the gap between the businesses that already focus on sustainability and those that do not: revealing a hard journey ahead for the latter, when the time comes to try and catch up.

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The first and main obstacle is cultural: changing mindsets is difficult. If a minority of companies have already started embracing change, a vast majority remains uncertain, cautious, and conservative in their approach: “Why should we do things differently? Why should sustainability have anything to do with producing and selling?� The answer is that sustainability is not just a nice-to-have, an external constraint: it's actually the biggest opportunity corporations can seize to innovate, transform their business model, and create real differentiation and value for all.

To make this happen, to build a more sustainable and better performance, businesses need to connect the dots between all their assets. Businesses need to break down all traditional silos and internal boundaries between sales, marketing, financial, CSR, communications and HR departments. From this standpoint, engaging the top leadership is essential. At the end of the day, it's all about protecting growth and profitability over time, but in a manner which simultaneously protects the world around.


Sustainability is not just a nice-to-have, an external constraint: it's actually the biggest opportunity corporations can seize to innovate, transform their business model, and create real differentiation and value for all. Pascal Beucler, MSLGROUP

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Section III: Humanizing Sustainability: Making it Matter


Symbols for the Future

UGE's wind turbines are often the center piece of our installations. They look great and our clients love them. In fact, our projects are usually designed to make them stand out. Jan Gromadzki Senior Product Manager, UGE

16 UGE wind turbines line the highway near El Paso International airport in Texas. The turbines are mounted atop customfabricated steel towers that light up brightly at night, and are designed to make the turbines stand out. The result is a visually stunning symbol for the El Paso Transportation Authority's commitment to the environment.

Images Credit: UGE

The Lincoln Financial Field, home of the U.S. football team the Eagles, sports 14 wind turbines and solar panels that generate all of its energy onsite. The UGE turbines are strategically placed at opposing ends of the field as a visual statement.

@JanGromadzki

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Me, My World, The World Bridging the gap between marketers and sustainability leaders Although for many companies around the world the tides may be changing, there is still a fundamental disconnect between marketing and sustainability leaders. Having worked with both, it's not surprising this tension exists. Marketers are taught to drive profit quarterly. Their bonus structure is based on increased sales and because many of them are rotated on to new assignments routinely, those sales are short-term focused. Sustainability leaders are taught to view the long-term health of the business and to make key decisions based on the long-term impacts the business will have on society.

Luna Atamian Senior Account Executive Corporate & Brand Citizenship North America, MSLGROUP @lunatamian

This short-term versus long-term contradiction can be difficult to bridge. The secret is being able to understand each other and speaking to sustainability from the marketing lens. Don't get me wrong, this is much easier to say than do. But we've seen it work. When marketing and sustainability come together it can be a business transformational moment. We must move past what we know and how we were trained. We must see the other side and we must see the bigger picture in how we grow our brand into the future.


Experts in the industry are aligning to 10 common principles IMMERSE

CSR teams into marketing departments

VISION

Aim to unite employer, customer, brands

SHARE

Bring marketing into CSR

UNIQUE

Make the story yours only

EMPOWER

Youth, with digital

INNOVATE

Sandbox for projects at the sustainability/marketing intersection

ALLOCATE

A fixed portion of budget to brand substance

ONGOING

Audit existing touch points for opportunities; make it ongoing

TARGETS

Set longer term objectives for brand substance marketing

RELATE

Focus on what matters to the consumer; be relevant

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A new era for brand building If sustainable business practices are going to play a core role in the future of brands, it's critical that brand building becomes integrated. For those of us who work in sustainability, we know that sustainability provides so much business value. We just have to do a better job at defining that value. We need to move from niche audiences to mass consumers. There is tension around the fact that sustainability doesn't seem to fit into the traditional Marketing 101 playbook, so we must find common interest. The commonality for both marketing and sustainability is brand substance. All industries need to converge and bridge the gap between marketing and sustainability.

Marketing campaigns would start with the inner circle: “Me” the consumer. The next layer would explain a brand's impact on “My world” - the people and places that matter to the customer. Lastly, the message would expand to how the company impacts “The world” - the social and environmental impact of the brand. Me, my world, the world - it's a more holistic and authentic approach to speak to today's consumers.


THE WORLD my social and environmental impact, through my association with the brand

MY WORLD what matters to me

ME

the customer

Me, my world, the world A more holistic and authentic approach to speak to today's consumers.

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Humanizing climate change Making communications more relevant Climate change has become one of the most complex challenges of our generation. Sitting at the intersection of science, politics and emotion, the realities of climate change and its impacts are not only difficult to understand but also to accept. The impacts are overwhelming, distant, hard to visualize and pegged to varying scientific projections (is it 2 degrees, 3 or 6?). It is no wonder that most businesses and organizations engage people around issues that are more tangible such as recycling or electricity use. Yet businesses, constrained by these challenges in the supply chain, have been feeling these pressures for years. While the world has been debating about climate change, many organizations have been trying to prepare for it. Kristina Joss Senior Sustainability Consultant, Salterbaxter MSLGROUP @kjoss_

This year in particular is proving to be a critical moment as the launch of the UN Sustainable Development Goals in September and an agreement for COP21 in December are encouraging collaboration between businesses and governments on sustainability solutions. However, we seem to be missing one big audience - people. For society as a whole to make a real shift to sustainable lifestyles, it's important that we engage the general public and involve them in the journey. After all, products might be made at factories and sold at stores, but they are used and discarded by end consumers.


The impacts are overwhelming, distant, hard to visualize and pegged to varying scientific projections (is it 2 degrees, 3 or 6?).

The last few years have shown us unprecedented natural disasters and record temperatures, resulting in increased acceptance by many that our climate is undoubtedly changing. However, real change only happens when awareness

and understanding energize people to act. Earlier this year, I moderated a panel at Sustainable Brands on 'Humanizing Climate Change' on this very topic how brands need to reach people about key

sustainability issues in order to incite the changes we need for a more sustainable future. One key element that seemed to resonate with the room full of sustainability leaders was the tremendous opportunity of getting it right. Section III : Humanizing climate change: Making communications more relevant

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Brands that move away from brand-focused communications to issuefocused communications stand to be recognized as leaders in transparency and authenticity. There's certainly no one formula that fits all businesses and their respective sustainability goals and initiatives. However, we are seeing good examples of how companies are using purpose, meaning, relevancy and language to make incremental steps.

Here are some takeaways from the panel, and from our recent research and work around sustainability: Develop your sustainability credentials Aligning business practices to meet sustainability goals can be challenging. Getting your language right is one way to tackle it - especially when you're addressing millennials. In our global survey of 8,000 millennials last year, we learned that 79% wish it were easier to know which companies are doing good. In other words, 4 out of 5 young adults are not familiar with brands' sustainability practices and are interested in learning more.

Find relevancy in sustainability communications Sustainability encompasses many issues and sub-topics. Find the topic most relevant to your business, your brand and your customers. Create human stories around these to drive advocacy across social networks and inspire more participation. Salterbaxter MSLGROUP's Social Influencers study in 2014 revealed that what is missing from almost all of the organizations in the index are social communications that create personal resonance with the individual fan or follower, which then inspires them to implement personal changes in their perceptions and behaviors.

Transform millennials into citizen partners Another key finding from our millennial survey was that the majority (69%) want businesses to create simple ways for them to get involved in societal and environmental issues. The crux here is “simple� - how can we take the homework out of sustainability and create easy ways for people to make positive contributions. In the long run, how might we positively influence their behavior and lifestyles to be more sustainable.


We can count on COP21 to drive public awareness around the topics of climate change and sustainability. It's up to us and our communications strategies to sustain people's attention and inspire them to act with us.

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Simplify, Inspire, Engage Inspiring campaigns selected by the Corporate & Brand Citizenship team at MSLGROUP We asked our colleagues to share their favorite sustainability and social responsibility campaigns campaigns that resonated with them, inspired them and motivated them to act. Here's what they shared and why these campaigns stood out.

t c


#idea

“I love Elefant's Read A Tree! The idea is so simple, I wish I had thought of it. It's a very creative and effective way to tell people to save trees while also making them a part of I love Elefant's Read A Tree! The idea is so simple, I wish I had thought of it. It's a very creative and effective way to tell people to save trees while also making them a part of the solution.

Romanian e-commerce platform Elefant put up posters on trees, asking people to scan a photo of a tree, for a free e-book. A nice way to remind people to opt for greener forms of reading, and to promote Elefant's e-book library.

Sachin Karle

Executive Creative Director MSLGROUP Creative+

@sachinkarle009

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#emotion There's a saying that reason leads to analysis and emotion leads to action. The power of this Project Sunlight video is clearly emotional, touching people's hearts because nothing is more universal and engaging than such a question: why bring a child into this world? Amidst bleak headlines, it's refreshing to see a video that points to a brighter future, with safer drinking water, better farming practices and healthier hearts. A good narrative too, for Unilever's sustainability actions under Project Sunlight.

Pascal Beucler Global Chief Strategy Officer MSLGROUP @pbeucler


#awareness This campaign highlights one of the issues I feel most strongly about - cruelty in animal husbandry. With The Scarecrow, Chipotle Mexican Grill is urging people to think about how and where their meals come from, by showing them the uncomfortable truth about industrial farming. I think it’s a great step towards promoting sustainable and responsible farming practices.

It’s interesting how a fastfood chain like Chipotle Mexican Grill chose to raise awareness about the harmful and toxic effects of industrial food production on animals, workers’ rights and overall human health.

Melanie Joe Consultant, Research and Insights MSLGROUP

A part of its ‘Food with Integrity’ sustainable farming campaign, The Scarecrow is an animated short, with an accompanying mobile game.

@melanie_joe

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#insight

Follow the Frog is hilarious and the insight about people's guilt is spot on. It's like they read my

I E

Follow the Frog is hilarious and the insight about people's guilt is spot on. It's like they read my mind and made this ad just for me!

Nidhi Chimnani

Director, Research & Insights MSLGROUP

@nidhichimnani

A desk-worker, family man and all-around good guy's ambitious journey to the heart of the rainforest to do something about deforestation does more harm than good. There's a better way to do good says the Rainforest Alliance look for Rainforest Certified products, marked by a green frog.

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#impact

I like Greenpeace's Everything is NOT awesome campaign because it is really brand centric, but also Greenpeace’s Everything is NOT Awesome campaign was brilliant. Not only was it uniquely brand centric, but it also represents the impact society can have in demanding companies to act and do better for the environment.

Kristina Joss

Senior Sustainability Consultant, Salterbaxter MSLGROUP

Greenpeace's parody video of the LEGO Movie's theme song Everything is Awesome is set in the Arctic. It shows an oil spill at a rig made from LEGO and Shell co-branded products and urges people to ask LEGO to end its partnership with the oil company. 7.4 million people signed the petition, and LEGO announced it would not renew its contract with Shell.

@kjoss

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happen every day in South Asia or sub#relevance Saharan Africa, it is difficult for us to identify with these victims. Stop the Wedding creatively managed to channel eople's empathy for Even though most of us are aware that widespread and serious abuses of children happen every day in South Asia or sub-Saharan Africa, it is difficult for us to identify with these victims. Stop the Wedding creatively managed to channel people's empathy for Thea's false marriage into real cases in the world.

Did you know that 39,000 girls become child brides every day? Plan Norway created a fictional wedding blog tracing a 12-year Norwegian girl's journey to marrying someone three times her age. The campaign was successful in highlighting the issue, urging Norway to lead global change and mobilizing people to #stopthewedding.

Luna Atamian

Senior Account Executive, Corporate & Brand Citizenship North America, MSLGROUP

@Lunatamian


You can only reach a broad set of audiences if you make your communications easy to digest. Michael Dickstein Director Global Sustainable Development, HEINEKEN @MichDickstein

Recognizing HEINEKEN's sustainable farmers: HEINEKEN invited people to support the Legendary 7: its sustainable farmers like Coen ten Berg - Sheriff of Soil Fertility, and Jacky Brosse - Protector of the Bee. People could view their stories on mobile app Blippar and take selfies of themselves in legendary garb.

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Break down the complexity. In politics and in business, global citizenship and sustainability are often seen as “another thing we must do” or a “second order issue” competing for resources rather than complimentary to “primary objectives”. For example, in addition to environmental risks, the World Economic Forum maps out four other global risk priorities: societal, economic, geopolitical and technological (Global Risks Report 2015). In each of these four categories, CSR issues such as water supply crises, extreme volatility in energy and agriculture prices, global governance failure and mineral resource supply vulnerability are at the nexus of impact and likelihood.

Mark Newton Head of Environmental and Regulatory Affairs, Samsung Electronics America @newton_csr

Clearly these are complicated and interconnected issues. They are viewed as externalities to the mainstream public (and unfortunately to too many policy makers) because we are only indirectly connected to the impacts and because the timescales of these impacts are not immediate or certain.


Messaging has been too centered on the big picture and it is too overwhelming for most. Mark Newton, Samsung Electronics America

Andrey Bayda / Shutterstock.com

To overcome this complexity, I suggest a few guiding principles: Keep it simple and fair.

Make it matter personally.

Make it kid-friendly.

This stuff is way too complex and polarized. Acknowledge both sides of the issue to gain trust.

Contrary to the old adage “don't lose sight of the forest for the trees” we must help the public look into the forest to see the trees that they care about. Messaging has been too centered on the big picture and it is too overwhelming for most.

This stuff is scary. Too scary and apocalyptic to discuss with your young children. No need to be Pollyanna-ish* but no need for it to be Brothers Grimm* either. *Pollyanna is a fictional character in a children's book who excels at the “glad game” - finding the positive in every situation *Brothers Grimm refers to the original modern day fairytales, which were aimed at adults and dark in nature

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Engaging Employees around CSR The state of employee engagement isn't revealed simply through an annual survey, but self-evident in the corporate culture - the habits of mind and behavior that leaders and employees express every day. When working with clients who want to improve employee engagement, we start with the end in mind. We ask clients, “when employees are engaged, what will they be thinking, feeling and doing differently from what they are today and how will this impact your business?� This establishes the aspiration for engagement in ways that can then be measured and actioned upon - and tied to organizational goals. Kerri Warner Senior Vice President Employee Practice, North America, MSLGROUP

The very process of bringing together a group of leaders who haven't had this conversation together before is the first step in building alignment, shared accountability and then a multi-channel strategy to drive engagement. Then we get tactical, co-creating a set of specific activities that reflect the desired state of engagement.


3 elements are critical to creating or changing habits of mind & behavior CLARITY

CONSISTENCY

CONTRAST

of message

of actions and behaviors, starting with leaders

showing a visual element that makes people take notice

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Often, our clients need to drive employee engagement around a specific program such as a CSR or a “giving back” initiative. This is a particularly effective approach with two clear advantages CSR programs often need or want employee participation to be successful, which means employees can bring “life” into work vs. the more familiar bringing “work” home into life. When employees are granted time “off” to participate in giving back programs, it proves that the company aligns values with actions. Employees who might otherwise set time aside on a weekend or holiday to give back, can instead take their personal time into their work time to do something that matters to them. This reinforces that the employee's values are shared with their employer, thus creating a deeper connection and inspiring greater loyalty.

CSR programs often appeal to employees across a wide demographic It has been well-documented that millennials are shaping the workplace of the future immensely and that they greatly value a company's CSR activities - so much so, that it is a consideration for them in employment decisions. What's less discussed is the value older workers also place on giving back. It's these Baby Boomers and Gen Xers, like myself, who have or are successfully navigating their career path and then pausing to reflect on the need to not just work with purpose, but to do purposeful work. For some, this means abandoning corporate careers. For others, it means engaging as fully as they can in their company's “giving back” programs. By meeting the needs of different demographics, there is a compelling communications message for all audiences that goes directly to the heart of what matters to all.

Employee engagement is both a result of well-planned “giving back” programs and also a catalyst to achieving CSR goals. In this way, looking holistically at employee engagement in conjunction with CSR has great upside for all stakeholders.


May 2015 Getting to grips with Integrated Reporting

Inside What’s driving the reporting agenda, and how do you take the first steps?

Integrated Reporting

MAKING IT COUNT As the demand for greater reporting transparency continues, Salterbaxter MSLGROUP provides an inside look at what's driving the Integrated Reporting agenda in its spring 2015 supplement of Directions.

salterbaxter.com/integrated-reporting-making-it-count

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Section IV: A Rising Business Priority: Human Rights


Businesses have a responsibility to respect universal human rights in their operations and supply chains. Human rights are crucial to building the resiliency of people, communities and businesses.

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Human Rights is at the

Center of Business Sustainability In the past five years, the topic of human rights has moved to the center of corporate responsibility and sustainable business. There are two specific reasons and one more general and very powerful driver. First, the United Nations Global Principles on Human Rights and Business, adopted in 2011, make it clear that companies have a responsibility to respect universal human rights in their operations and supply chains. Second, the UN Sustainable Development Goals (SDGs), adopted in September this year, have a strong focus on the role of civil, political, social and economic human rights in advancing sustainable development. Comprising 17 goals and 169 targets, the SDGs will shape national and international sustainable development initiatives and financing in the public and private sectors for the next fifteen years.

Jim Peacock Director, Consultancy and Communications, Salterbaxter MSLGROUP @jecpeacock

Third, technology is driving transparency and change in this, as in many other fields. According to The Economist, today half the world's adult population owns a smart phone; and 80% will by 2020. In the human rights context, digital evidence of shortcomings or abuse is increasingly being recorded and shared, from deep in the supply chain and from office and retail operations.


Walk the human rights talk The upshot of these developments is that companies need to “know and show” what their human rights risks and impacts are, and what they are doing to address those. This involves four main steps: Conducting a formal impact assessment across the value chain Creating a statement of commitment Integrating human rights in all relevant functions and processes Reporting regularly on performance

Since 2011, many large companies have issued Human Rights policies and increased disclosure on issues such as supplier auditing and workforce diversity. Some have also pioneered issue-specific approaches, such as Intel on conflict-free minerals and Coca-Cola on 'farmers land rights. But holistic, company-wide approaches have been rare, until now. Earlier this year, detailed guidelines for implementing and reporting on the UN Global Principles were launched and six companies have stepped forward as early adopters: Unilever - the first adopter, ABNAmro, Ericsson, H&M, Nestle and Newmont Mining. These companies are not simply expanding the coverage of human rights in their annual sustainability reporting; they are also pioneering new due diligence, impact assessment, business integration, training and communication methods, and being open about the challenges, dilemmas and benefits involved. Indeed, Unilever’s comprehensive Human Rights report and Nestlé’s report on impact assessments are invaluable 'how-to' guides for others in their sector and beyond.

This is much needed as the Danish Institute for Human Rights, an adviser to Nestle, has observed. There are an estimated 80,000 multinational companies in the world, of which an estimated 400 have a human rights policy and fewer still have done human rights impact analyses. Further stimulus to action and transparency is expected to come from the new Corporate Human Rights Benchmark being prepared by a coalition of investors, NGOs and governments. This will rank the top 500 globally listed companies on their human rights policy, processes and performance. Importantly, it will be based mainly on already published information, providing a competitive incentive for transparency. In sum, we are in a new era for human rights as a business priority. Leaders are already seeing reputational and financial benefits. Laggards, on the other hand, will find it increasingly hard to be viewed as responsible or sustainable companies if human rights remain marginal in their strategies and actions.

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Building the Resilience of

People and Communities Coming from a human rights and anthropology background and having worked with different non-governmental organizations (NGOs) for almost ten years, I naturally became interested in the subject of business and human rights while studying at Sciences Po Paris in 2013. Businesses in general have a more mature management system and more sustainable resources, which NGOs do not always have. Plus, a focus on economic profits often drives businesses to expand their markets across the entire country or the entire world. Thus, when businesses decide to embrace human rights, there is a huge potential to make a significant impact. Liping Mian Human Rights Advocate Liping is dedicated to driving change, in her years as a human rights advocate and at her current role in a multinational company.

However, businesses are still exploring why they should care about human rights, what they could contribute positively to human rights and how they could act on it. After one year of working with a multinational company on corporate social responsibility, I propose that the real opportunity of human rights, for business, is to develop the sustainability of people.


Sustainability of people Companies should integrate human rights as part of the business rather than isolate the issue just because they should “do good.� Human rights does not only mean cost and risk, but also benefit and opportunity. Taking care of human rights could ensure that companies have sustainable employees to run the business, sustainable customers to pay for their products, and sustainable local communities to maintain the business. Innovative ways of respecting human rights could also give them a competitive advantage over their peers.

ENSURE SUSTAINABLE EMPLOYEES Besides following national labor laws and the conventions of the International Labor Organization, many companies are taking initiative to promote a safe, diverse and friendly workplace for their employees. For example, when I was engaging with the Global Fund to Fight against AIDS, Malaria and Tuberculosis (GF) in 2010, a private sector representative on the board shared that his company in South Africa provides free AIDS treatment to their employees. In a country where the rate of HIV infection among the general population is more than 60%, providing AIDS treatment to its employees is crucial in achieving a sustainable labor force within the company.

1

Averting HIV and AIDS, South Africa HIV & AIDS Statistics, http://www.avert.org/south-africa-hiv-aids-statistics.htm.

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BUILD SUSTAINABLE CUSTOMERS

CREATE SUSTAINABLE COMMUNITIES

In order to build sustainable customers, it is important for businesses to ensure that their products are based on current regulations with respect to quality and quantity, so that their customers come to no harm while using them. But businesses can go further, to match their actions to their own principles and their customers' values. For example, several of the world's top 500 companies are strong supporters of gay rights, giving them access to a loyal and engaged customer base.

Increasingly, companies care about creating sustainable local communities in the areas in which they operate. Traditional strategies to improve living conditions include charitable contributions to local communities, volunteerism among their employees, and establishment of foundations to support nonprofit projects. But often it is difficult to sustain these efforts. In recent years, with the emergence of public private partnerships (PPP) and co-creation, business have started to work together with local authorities, NGOs and local communities to implement innovative models - such as community investment funds, income generation activities and promotion of sustainable technologies among local households.

Businesses should further safeguard their position and reputation by taking positive actions to influence their value chains. The November 2012 fire in Bangladesh, for example, led people to yet again focus on multinational companies and hold them accountable for their supply chain behaviors. Countries and regions require in their legislation that multinational companies control their value chains, through means such as: Including human rights-related clauses in agreements with their suppliers, sub-contractors and partners Auditing their value chains on a regular basis Providing trainings and mentorship to their value chain on respecting human rights


Human rights are crucial to building the resiliency of people and communities, and also of businesses. Liping Mian, Human Rights Advocate

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3 Tips to Achieve Real Impact with your Human Rights Initiative Luna is passionate about social change, and a firm believer in companies' responsibility and opportunity to make a difference. Prior to MSLGROUP, Luna served as the Eastern Chapter Director at FWD.us where she helped build national advocacy campaigns to mobilize tech leaders around immigration issues. Her campaign Immigrant Heritage Month received an official recognition from the White House as well as President Obama.

Luna Atamian Senior Account Executive Corporate & Brand Citizenship North America, MSLGROUP @Lunatamian

The belief that human rights are relevant to the economic, social and environmental aspects of corporate activity hasn't always been very popular, which can be surprising given that human rights common norms have existed for 67 years. The Universal Declaration of Human Rights (UDHD) adopted by the U.N General Assembly in 1948 does not call out businesses' responsibility specifically, but applies to all parties including corporations. It only takes a quick glance at recent companies' CSR reports to understand the increased responsibility and opportunity for businesses to make real societal change. Yet, despite corporations' encouraging efforts, understanding what it really means in practice for a company to respect human rights is still a challenge that companies face. Here are three tips to change that.


Collaborate closely with human rights experts to better understand human rights risks key step towards ensuring good human rights performance by companies is the practice of human rights due diligence: the analysis of business activities and the risks those activities pose to affected communities. This analysis is complex and requires technical human rights expertise and training which most companies lack nowadays. That's why businesses need to increase collaboration with human rights experts. Indeed companies often ignore the changeable human rights risk environment. Human rights risks are not only various but also constantly changing. Using experts' counseling, businesses need to make a greater effort to continually map the changeable long-term and short-term risks as well as direct and indirect risks associated with their activities.

For instance, analyzing direct short term results such as local job creation can overlook human rights violations embedded more deeply in a community, such as discriminatory hiring practices based on gender or ethnicity. Collaborating with human rights experts can help companies face these challenges through careful impact assessments, training, monitoring and reporting mechanisms, providing actionable tools to positively impact local communities in holistic and meaningful ways.

Recognize that human rights issues are often inter-linked and create wholesome programs usinesses often concentrate on the fulfillment of one particular human right related to their specific operations without taking into consideration that human rights are indivisible, interdependent, and interrelated. To be sure, most businesses are organically associated with certain rights. For instance, it makes sense for a pharmaceutical company to focus on the fulfillment of the right to health in its communities. Yet, the fulfillment of the right to health may depend, in certain circumstances, on the fulfillment of the right to education or to information. The realization of one human right most often depends on the realization of other rights. By concentrating on the enjoyment of one specific human right, it is likely that other fundamental rights might be overlooked, resulting in more human rights infringements than intended.

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Implement a formal company policy statement and deliver on it to boost business performance

onclusively, merely expressing support for the UN Global Compact’s Ten Principles does not suffice anymore. Millennials expect more from corporations. They are interested in knowing which company has taken the step of explicitly referring to human rights in their formal company policy and adopted it.

In a nutshell, a closer collaboration with human rights experts, analyzing different human rights issues and how they're dependent on each other as well as the implementation of a formal company policy statement explicitly referring to human rights would provide corporations with the agility to pursue real impact, which will reflect tangibly on their corporate citizenship.

For instance, Johnson Controls supports human rights norms such as the Ten Principles, the U.N. Framework on Business and Human Rights and the Guiding Principles for the Implementation of the U.N.'s 'Protect, Respect and Remedy' Framework. Yet, the company has gone a step further it sets commitments and expectations for itself as well as accountability and reporting mechanisms.

It also incorporated such norms in supplier contracts in the fields of labor, health, safety and environment. As a result, the company saw an improvement in its long-term business performance, reputation, productivity and employee retention.


Despite corporations' encouraging efforts, understanding what it really means in practice for a company to respect human rights is still a challenge that companies face. Luna Atamian, MSLGROUP

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The Ever-Evolving

Definition of Human Rights The late Nelson Mandela famously said, “To deny people their human rights is to challenge their very humanity.” The idea that every person is free simply by the virtue of being born human seems straightforward enough, and yet, almost seven decades after the Universal Declaration of Human Rights was adopted by the UN General Assembly, we continue to live in an age where adverse human rights violations are commonplace.

Melanie Joe Consultant, Research & Insights, MSLGROUP @melanie_joe

It might seem reasonable to say that individual freedoms are being violated because the core concept of human rights is yet to penetrate remote and regressive places in the world. But one can’t look away from the fact that thousands of people continue to be denied fair and just treatment even in ‘developed’ regions of the world. Where are we going wrong? In an effort to compartmentalize each of our rights, have we overlooked what ‘human rights’ collectively means in a world that’s constantly evolving socially, culturally, and politically?


Our world is evolving, and so are our human rights With technology, the internet and social media, our shrinking 'global village' has become more local than ever. The internet has become one of the most powerful platforms for the exchange of ideas, thoughts and opinions between people. As people are exposed to the way of life and rights of their counterparts in other societies, they're inevitably going to expect the same for themselves. And, as we all adapt to today's changing technologies and political landscape, what we perceive as our rights also keep changing. In these scenarios, the 30 rights officially recognized by the United Nations may not always be comprehensive enough. These rights may have seemed exhaustive when they were drafted seven decades ago, but it is now time to redefine what each of our rights really means today, and what they could mean in the future.

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The shifting lens through which we view our human rights Individual freedoms today are viewed in a much different light than they were until a few years ago. The same rights that have existed through the decades hold new meanings today, like some of them below:

2 For digital users (not just Gen Z and Millennials, but all other

generations), the right to privacy translates into the right to digital privacy and data protection. The AshleyMadison hack, for example, raised important questions - does moral vigilantism justify the public shaming of an individual’s personal choices? How can we protect people’s digital privacy from both hackers and by journalists and society?

The right to freedom of 3expression for many millennials

1 Freedom from discrimination can encompass everything from equal

pay at the workplace, to the right to be served without prejudice from businesses. This was famously highlighted this year by the international outrage over a homosexual couple being denied service by a local baker in Oregon, USA.

translates to the freedom to enjoy open dress codes, flexible working hours, and so on. This has launched a serious debate in society around how employees should behave and be treated. The recent NYTimes feature on tough work practices at Amazon (both in its factories and its corporate offices) received many strong reactions, as people argued about the importance of work-life balance, and the treatment of parents in the workplace. People are beginning to view a good work-life balance as an essential basic foundation for any job – and a basic human right.


4 Areas of conflict often see some of the worst cases of human rights violations - the Syrian refugee +

crisis highlights this in tragic ways. Perhaps one of the most distressing things about the crisis was the refusal on the part of several countries to provide asylum to the refugees. Similarly, climate refugees who are displaced by the disastrous effects of climate change in places like the Kiribati Islands have started demanding compensation from the developed world. With good reason too, considering that developed nations have contributed more to climate change, with their consumption patterns and business practices. In both these cases, denial to entertain the victims' requests becomes a direct violation of their right to seek a safe place to live.

Looking the other way is no longer an option. We've long known that war is exploitative of human rights. Today, we need to seriously consider climate change as a threat to human rights as well. Societal evolution is bringing along an evolved set of concerns with it, and this flood has only just begun. The near future will also very likely see the debate around the impact of robots, artificial intelligence and machines on human rights, and that's just scratching the surface.

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The road ahead There has been no better time than now, to discuss what it means to be a human being with rights. Technologically, we’re at our most progressed state. Socially, we’re at a better place than we have ever been: more accepting, inclusive and humane (although we do have a long way to go still). At this crossroads, it’s necessary to ask ourselves some crucial questions: How do we plan to equip ourselves to ensure a fair and just world for ourselves and our future generations? How do we do justice to the ‘right’ in human rights?

Here’s what I would like to see us do, as a society: Recognize the flexible nature of human rights

Make human rights laws translate across borders

Societal and technological evolution is only further going to push the boundaries of what we consider as our basic rights. For example, the internet has long ceased to be a luxury. Today, it’s a need that plays a vital role in the economic and social upliftment of people. It could therefore be fair to say that the right to education must also include the right to have access to the internet. Despite all the reservations surrounding it, Facebook’s Inetrnet.org is a significant step by the social network in meeting this rising human right.

It should be our priority to ensure that our human rights legal framework takes into consideration the political, cultural, economical, even environmental differences between societies for fair application of our existing laws. In other words, while we look at modernising our human rights, we should also not ignore that countless people across the world lack basic human rights. In a world where practices like child marriage continue to thrive, we need to re-evaluate how international efforts can be more effective in preventing these violations at the grassroots level.

Give people a voice States and other law enforcement agencies have a responsibility to listen to people’s needs, and this couldn’t be more relevant than in the case of human rights. Policymakers would do well to work with civilians to better understand their expectations and hopes surrounding their basic rights. For example, Finland crowdsourced its legislation from everyday people through Open Ministry. Using an inclusive, people-centric model like this to redefine our human rights where needed, will ensure that people have a say in the rights they enjoy as human beings.


Finally, we must wave goodbye to political associations that so strongly seem to influence the opinions and decisions of policy-makers when it comes to individual freedoms. It’s interesting to note that in an age where we’re excited about self-driving cars and experiments to colonize other planets, we’re still ambiguous about basic rights like the freedoms of individuals to decide what to do with their bodies. It’s disconcerting that things that should be basic rights or at least individual choices – like abortion, maternity health plans, maternity and paternity leave– are still being debated in the political space in countries as advanced as the U.S.!

Similarly, the recent example of a man being lynched to death over the consumption of beef in India, and the lack of stringent action against it makes one wonder: why are individual freedoms still viewed through a political lens? Why are those in the position to tackle these issues still under pressure to conform to the opinions of their political parties/vote bank? It’s time for the international community to reach an understanding on how we can place human rights above all other considerations. We need to separate these from political, religious and cultural factors, and look at them for what they really are – the rights that each and every human being is entitled to. Only then can we move towards a world where we do justice to the concept of human rights.

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Data protection, a fundamental people right in Europe

Leonardo Sforza Managing Director, Brussels, MSLGROUP

1. http://www.europarl.europa. eu/news/en/newsroom/content/20151015STO97860/html/Morae s-on-mass-surveillance-Balance-is-neededbetween-privacy-and-surveillance 2. http://eur-lex.europa.eu/legalcontent/EN/TXT/?uri=CELEX:12012P/TXT 3. http://fr.scribd.com/doc/285362297/Luxembour g#scribd 4. http://blog.mslgroup.com/eu-us-personal-datatransfer-after-the-european-court-ruling/

“I think people now accept that our behavior on social media is being monitored. What they are not aware of is how that is being done. For most citizens who are more or less aware that their conversations, their emails and their metadata can be accessed, the issue is really, is their data being accessed for good reasons? Is it to protect us from terrorism threats and so on?”1 Claude Moraes, chair of the Civil Liberties committee at the European Parliament and British MEP for the Labour party, summarizes well the sensitivity of European citizens to data

protection, while recognizing the value of our always more connected digital society. The right to privacy and personal data protection are safeguarded by the Treaty on European Union and the Charter of Fundamental Rights of the EU2. Beyond the older and traditional citizens’ rights and freedoms at the basis of every democracy, the EU Charter is updated in the light of changes in society, social progress and scientific and technological developments. It is legally binding for public bodies as well as for private organizations across the 28 European member States.

The recent ruling of the Highest European Court of Justice, originated by the concern of an Austrian student on the use of his personal data by Facebook, has reaffirmed the primacy of the right to personal data protection, nullifying the EU-US agreement on data transfer across the Atlantic3. The hundreds of companies relying until last 6 October on the “safe harbor” agreement for their operations should re-asses carefully and without delay their data processing systems within the own organization and in third party relations with their service providers4.


The right to privacy and personal data protection are safeguarded by the Treaty on European Union and the Charter of Fundamental Rights of the EU. Leonardo Sforza, MSLGROUP

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About People's Insights

Our other titles include: Data In. Data Out. (our experts explore the transformation of Big Data into smart ideas)

People's Insights is a collection of inspiring initiatives, insights and foresights shared by MSLGROUP's SPRINTers - our global team of 100 strategic planners, researchers and insights experts. We feature the best of these initiatives as People's Insights monthly briefs, and original insights and foresights from our SPRINTers and other experts in our People's Insights reports.

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The Future of Business Citizenship (findings from our survey of 8,000 millennials in 27 countries)


The Team Pascal Beucler SVP & Global Chief Strategy Officer, MSLGROUP

Nidhi Chimnani Director, Research & Insights, MSLGROUP

Melanie Joe Consultant, Research & Insights, MSLGROUP

Ankita Thobias Copywriter, MSLGROUP CREATIVE+

Parth Mistry Junior Executive, Operations, MSLGROUP CREATIVE+

Ashish Shah Senior Design Director, MSLGROUP CREATIVE+

Sudhir Garimalla Account Director, MSLGROUP CREATIVE+

Darshit Mahajan Creative Specialist, MSLGROUP CREATIVE+

Tapan Bhatt Senior Art Director, MSLGROUP CREATIVE+

Imran Memon Senior Graphic Designer, MSLGROUP CREATIVE+

Vipul Barot Senior Graphic Designer, MSLGROUP CREATIVE+

Manish Silajiya Senior Design Director, MSLGROUP CREATIVE+

Special thanks to:

Rahul Sutaria Quilling Artist, Manav Sadhana

From a very young age, Rahul (34) had a passion for creating art out of waste goods or unusual materials that are not generally associated with art. He also doubles up as a sports coach and arts & crafts teacher at Manav Sadhana - an NGO based at the famous Gandhi Ashram in Ahmedabad, where he spends most of his mornings teaching street kids. You will find his quilling artwork photographed and featured across this report. About Manav Sadhana Manav Sadhana is a registered Public Charitable Trust at Ahmedabad's Gandhi Ashram. The NGO is dedicated towards the upliftment of people living in marginalised communities in Ahmedabad. Manav Sadhna is engaged in constructive humanitarian projects that cut across barriers of class and religion while addressing issues faced by socio-economically neglected segments of society.

Shraddha Bagadia, Priya Brahmbhatt Quilling Artists & Volunteers, Laddoo Foundation

Shraddha and Priya are volunteers at the Ahmedabad-based NGO - Laddoo Foundation. They are extensively involved with children at the foundation, helping them learn art styles like paper quilling, origami, clay art etc. Together with their students, they helped create several quilling artwork that have been photographed and featured across this report. About Laddoo Foundation Laddoo Foundation is an NGO based in Thaltej, Ahmedabad. The foundation engages in bringing a positive change amongst children living in marginalised communities by organising sports & cultural activities for them and providing them with necessary school supplies. Laddoo's main objective is to facilitate holistic development of children, especially those living in underprivileged communities.


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