2. Goals for Today
• Meet peers and potential collaborators
• Review current SB member activities and initiatives
• Help you place yourself in the space, challenge thinking,
spark new ideas
• Explore potential opportunities for collaboration
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4. Check In…
•
Introduction
•
•
What did you hear of interest over the past 2 days?
What are you most challenged by or excited about for the
coming year?
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5. Background on SB Community and
Membership Activities
www.SustainableBrands.com
6. SB Mission
To inspire, engage and equip
companies to build new
business and brand value by
innovating for sustainability
www.SustainableBrands.com
7. • Sustainability represents the primary innovation
opportunity of the 21st Century.
• The leading brands of the future will be those that
promise and effectively deliver meaning and delight
for this and future generations.
• Building them takes a new set of skills, a new
network of collaborators, and a new collection of
tools.
www.SustainableBrands.com
8. Purpose of Membership Group
•
•
•
•
Peer to Peer Learning: Eliminate Recreating Wheels
Problem Solving and Solutions Based Collaboration
Internal Alignment & Engagement
Platform for Communicating Commitments/Wins
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10. Three Current Work Streams
• Driving Breakthrough Innovation
• Crafting the New Metrics/ROI of Sustainability
• Shifting Societal Aspiration and Demand
– Improving Understanding of the Landscape
– Engaging Employees
– Inspiring/Enabling Consumer Behavior Change
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12. Sustainability & The Future
Discussion Leads:
Fiona Bennie, Head of Sustainability, Dragon Rouge
Nick Liddell, Director of Strategy, Dragon Rouge
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13. The New Metrics of
Sustainable Business
Discussion Lead: Dimitar Vlahov, SB Director of Content
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14. “The great part of the miseries of mankind are brought upon them by
false estimates they have made of the value of things.“
– Ben Franklin, 1780
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15. #NewMetrics Brief History
Goal: To identify, define and quantify new forms of economic, social and
environmental value and tie same back to the bottom line
• First #NewMetrics conference convened at Wharton in 2011
• Conference attendance growing at 50% per year
• In discussion with Harvard and MIT about hosting partnership in 2014
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16. #NewMetrics in 2013
• New Metrics „13 Conference
• Corporate Member Meeting
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18. Modeling & Communicating ROI
• ROI of risk reduction and being seen as a
product category leader [Video]
• Internal carbon budgets and fees [Slidecast]
• SROI: Putting a monetary value on social &
environmental impacts [Slidecast]
www.SustainableBrands.com
19. Human Capital & Employee Engagement
•
Human capital valuation for next-frontier HR
decision-making [Slidecast]
•
Putting a monetary value on employee retention
[Slides & Audio]
•
Increase total QoR score at a rate faster than that
of the company‟s sales growth [Slides & Audio]
www.SustainableBrands.com
20. Creating & Measuring Shared Value
• Measuring the core business benefits of a social
value proposition [Slidecast]
• Measuring shared value across multiple
geographies [Audio]
• The evolution of social impact metrics around
product certification [Slidecast]
www.SustainableBrands.com
21. Selling Sustainability to the C-Suite
• Benefits of ambitious goals and data
transparency [Audio & Slides]
• Strategic levers for non-CEOs [Audio & Slides]
• Meaningful Brands Index [Slidecast]
www.SustainableBrands.com
22. Performance Ratings & Reporting
• Context-based approach to corporate
sustainability ratings [Audio & Slides]
• The value of a large „metrics hub‟ [Slideshow]
• Using language and principles recognized by
existing legal system and capital markets
[Audio & Slides]
www.SustainableBrands.com
23. On KPIs and the Real Goal Line (Bob Willard)
3
1
X
Baseline
year
Performance
Today
Company X
Gold-standard
benchmark
2
Company
Goal
4
GOAL LINE(S)
Other companies
Material, Science-based
KPIs and Goals for a
Truly Sustainable Business
[Slidecast]
26. Key Discussion Questions
• What are the most cutting-edge KPIs you see your company,
or your peers, using today and what makes them attractive?
• What breakthroughs or challenges are you experiencing with
respect to goal-setting?
• Can we identify opportunities for accelerating momentum
through shared resources or other forms of communication??
www.SustainableBrands.com
27. Corporate Member Meeting @ SAP
• Attending members reported currently managing a wide
range of KPIs – from Coke, on one hand, who is
managing 12 KPIs, 80% of them tied back to financial
value, to others who are managing as many as 65 KPIs,
few if any of which are correlated to ROI or reported
regularly to C-Suite
www.SustainableBrands.com
28. Corporate Member Meeting @ SAP
•
Attending members agree that setting aspirational/stretch goals net better results
than safe, incremental goals, but significant obstacles remain. Major challenges:
–
–
–
–
–
–
–
Hard to choose between time-bound and open-ended goals
Concerns over not reaching goals in a reasonable time frame
Hard to quantify and communicate ROI of reaching goals
Scope of goals may be beyond direct control
Missing compensation incentives for key partners
Missing executive support
Implications for business model innovation
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30. Executive Summary
•
10 non-financial drivers most associated
with financial value in Europe: employee
engagement, customer satisfaction, public
perception, supply chain management,
carbon emissions, waste, LCA, R&D,
ethical integrity, board composition
•
Essential KPIs for vast majority of world‟s
companies probably less than 10
•
See the complete deck in the Corporate
Member Forum
(must be a current SB corporate member to access)
www.SustainableBrands.com
31. #NewMetrics Resources
• Download the free report here
• View more content from New Metrics 2013
• Follow the new_metrics channel
• Join the conversation on Twitter: #newmetrics
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32. Shifting Societal Aspirations &
Behavior
Discussion Lead: KoAnn Skrzyniarz
Guest: Sally Uren, CEO, Forum for the Future
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33. Shifting Societal Aspirations & Behavior
How are brands driving change?
•
•
•
•
•
•
Redefining Sustainability
Engaging Employees
Innovating Products, Services and Business Models
Communicating Better
Enabling Change
Leading Multi-stakeholder Collaboration
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34. Redefining Sustainability…
Beyond Green: Sustainable Brands are about well-being and purpose…
Recommended reading: “Flourishing: A Frank Conversation About Sustainability” by
John Ehrenfeld
www.SustainableBrands.com
35. Engaging Employees
1% Increase in Employee Retention = $81 million increase in profit at SAP
•
Ridesharing app =
36k carpools, saved
400k driving miles, 88
tons of CO2, 2,200
networking days,
$3.1 million in
business value
•
Molson Coors saw a
10% increase in
employee engagement
with its “Our Beer Print”
program
•
£35 Million saved, plus
56% energy, 52% water,
40% waste reduction
36. Designing it In
New Products or Services
•
TRESemmé Fresh Start
Dry Shampoos allow
consumers to clean their
hair without using water
•
Evolution in sustainable
product design with
strong sales profile
www.SustainableBrands.com
•
New service offering
leads to greater
insulation sales and
recycling
37. Designing it In
New Business Models
•
Collaborative/Sharing
Economy
•
Circular Economy –
fishing nets to carpeting
www.SustainableBrands.com
•
Product to Service
Innovation
38. Driving Awareness & Engagement
Leading by Example
•
Dell has proven its
commitment to
reducing waste
through constant
packaging innovation.
•
Kendall-Jackson installs
largest PV array of its
kind in the country, with
plans to expand to other
locations
•
Sainsbury‟s goes
beyond just zerowaste with two new
“triple zero” stores:
zero emissions, zero
waste, and zero water
impact
39. Driving Awareness & Engagement
Education and Advocacy
•
MOM Brands campaign
to educate consumers on
the benefits of bag
packaging over bag-inbox packaging
•
Chipotle advocates for
natural, organic, local foods
and hopes to educate
consumers through a
game app
•
Care to Recycle
campaign to increase
consumer awareness of
the lack of recycling in
the bathroom
40. Driving Awareness & Engagement
Making it Fun, Sexy or Cool
•
Fiat markets the 500 for •
its style and performance,
rather than its efficiency,
to make small cars sexy
Sony Electronics uses the
Practically Green
gamification tool to get
employees engaged and
excited about sustainability
•
Sunrise Belongs to Moderate
Drinkers campaign shows that
you can get more out of the
night by drinking responsibly
41. Enabling Change
Providing Feedback, Infrastructure, Support and Incentives
•
BMW will offer i3 owners a
gas-powered loaner car for
longer trips, removing a
major barrier to adoption of
electric vehicles
•
Real time data to
support and encourage
healthier activity levels
•
Sprint leads the industry
in phone recycling
through internal
infrastructure and
customer incentives
42. Multi-stakeholder Collaboration
Brand Support of Multi-sector Collaboration to Shift Behavior at Scale
•
A coalition of industryleading brands sign up to
support carbon legislation.
Ad runs on jumbo screen in
Times Square
•
How2Recycle labels: Several
industry leaders have joined
together to improve general
consumer recycling
behavior
•
Celebrity musician Will.i.am
teams up with Coca-Cola,
Beats by Dre, and others to
promote products made of
recycled plastic
43. Key Discussion Takeaways
Redefine “purchasing power”
Leverage peer collaboration
Explore co-innovation
Evolve from “net-zero” to “net positive”
Escape pilot purgatory to reach scale
It‟s “future visioning,” not “sustainability”
Connect the dots for and to employees
Learn from own mistakes in iterations
www.SustainableBrands.com
Notas del editor
Define Sustainability/Brand
HP, Symantec and ??? Added Patrick McCartan responsible for Membership Development
COKE: OPENING HAPPINESS…ME, WE, THE WORLD – WELLNESS, WOMEN’S EMPOWERMENT, WATER – CHIPOTLE: FOOD W/ INEGRITY – DRIVING AWARENESS OF THE FOOD SUPPLYPANERA: PAY AS YOU CAN RESTAURANTS – USING BUSINESS SKILLS TO ENGAGE/ENRICH COMMUNITYDOVE: EMPROVING WOMEN’S SELF ESTEEM NATURA’S SOU: GETTING TO THE ESSENCE OF WHAT’S ESSENTIALTRESSEME: DOUBLE DIGIT GROWTH IN NEW CATEGORY WHILE REDUCING WATER USE AT USE PHASELEVIS WASTE<LESS: OUTPERFORMED 4 OTHER LAUNCHES THIS YEAR, DRIVING AWARENESS OF WASTEPATAGONIA: DRIVING SALES BY DISCOURAGING ITMCDONALDS: HELPING MOM’S CREATE HEALTHY EATING HABITS
SAP: TwoGo ridesharing app has resulted in 36,000 carpools, 400,000 avoided driving-miles, 88 avoided tons of CO2, additional 2,200 networking days including the chance to carpool w/ senior management, and $5 million in business value. SAP has found that every 1% change in employee retention has a €62 million effect on profits.Molson Coors: 10% increase in employee engagement under program, increase in employee ratings of company’s responsibilityLife Tech DOT: Since implementation of sustainability measures (2004) cumulative $57 mill in bottom line savings with 236% sales growth, improved energy use by 56%, water use by 52%, and waste by 40%.
TRESemme dry shampoo: 20% growth in new category while reducing GHG emissions 90% and water impact at product-use phase.Levi’s: Outperformed 4 other product launches in the same year, while driving awareness around wasteB&Q: Customers were 3 times more likely to buy insulation when packaged with a service to clear the loft and donate unwanted items.
Lyft: Collaborative Consumption – $3.5 billion of revenue will flow through the sharing economy this year, and will grow more than 25%. In California, disruptive ridesharing startups such as Lyft and Sidecar have led to new regulation and the creation of a new class of business: Transportation Network Companies (TNCs). Peer-to-peer car renting service RelayRides has received investment from GM and is being adopted by other car dealers as a marketing tool to allow drivers to test vehicles before they buy.Interface: Circular economy – The circular economy has been sized at £13 billion in the UK alone. Interface partnered with the Zoological Society of London (ZSL) and yarn-supplier Aquafil to create a new business model from sourcing discarded fishing nets and turning it into carpeting.Philips: light-as-a-service model resulted in 35% energy savings in the first year, followed by a smart-meter upgrade resulting in another 20% energy savings for a total 55% energy savings with the new model.
Dell: Leading the way through constant packaging innovation: bamboo > mushrooms > wheat straw. Further the straw is broken down with natural enzymes, saving 40% energy and 90% water, and will be collocated near the box manufacturer to reduce shipping impacts.Kendall-Jackson: demonstrated its leadership by installing the largest solar array of its kind in the country.Sainsbury’s: is leading the way for supermarkets not just by committing to a zero-waste goal, but by building two new stores that go beyond zero-waste and include zero on-premise GHG emissions, and zero impact to the local watershed.
MOM Brands: educating consumers about the environmental impacts of bag-in-box packaging, and promoting their bag-only packaged products Chipotle: Advocates for the use of natural/organic/local foods and hopes to educate consumers through the Scarecrow game and short film.J&J: campaign to increase awareness about the lack of consumer recycling in bathrooms
Fiat:Campaign based on style and performance makes small cars sexySony Electronics: Sony and many others are utilizing gamification tools like Practically Green to get employees engaged and exited about sustainability activities and many of the behaviors learned at the office are carried homeHeineken: Sunrise Belongs to Moderate Drinkers campaign encourages moderate drinking by demonstrating that you can have a better time and get more out of the night—and get the girl—by drinking responsibly. The campaign is augmented by maps of best places to view the sunrise, and even sofas set up in strategic locations to view the sunrise.
BMW: will offer gas-powered loaner cars to i3 owners to go on longer trips, thus removing a point of purchase hesitation. –Also: Ford SYNCMyFord Touch provides drivers with realtime energy efficiency data, including MPGs, and the most fuel-efficient route in navigation allowing drivers to make sustainable decisionsFitbit, Nike FUELBand: Provide users with lifestyle data on activity and sleep to allow them to set goals and track progress to more healthy lifestylesSprint: Despite being the 3rd largest mobile carrier in the US, Sprint leads the industry in phone recycling
BICEP (CERES): Brands sign a petition and letter to President Obama in support of energy and climate regulationHow2Recycle:leading brands adopt new recycling label that augments basic Reduce/Reuse/Recycle messaging to increase recyclingCoca-Cola/will.i.am/Ekocycle:Coke partners with will.i.am and several popular brands to popularize sustainable products
Redefine “purchasing power” from the ability of consumers to affect price, value, etc. to the ability of consumers to have impact by purchasing for “values”.Develop a methodology to help decide when, how, why, etc. to collaborate.Work with others to innovate.Net-zero is no longer enough, brands now have to be regenerative.Strategies to help move initiative out of pilot purgatory and allow them to scale.Speaking the language of your audience is essential; speak the brand language by swapping “future visioning” for “sustainability” to spark conversation.Finally quantify the impact of sustainability work on employee recruitment and retention.Agree to share failures and setbacks; learn from our mistakes.