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  • A series about regional trends: The water crisis in Latin America challenges business as usual and spurs innovation.

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  • Flickr image by WorldFish

    This article was co-written by Lindsay Clinton and Rochelle March.

    As São Paulo, Brazil, suffers from the worst drought in its history, multinational pulp company Fibria, which is headquartered in the city, is one of many that has felt the pinch. At times, water has been shut off to 40% of the city and even now, after the rainy season, only 6-13% of the city’s reservoir’s capacity has been filled. In response, the company is working to reduce the amount of water it uses for forest irrigation.

    This isn’t the first time that Fibria has had to adapt to a shifting environment. Over the last several years, the rising scarcity of several essential resources – including water, fertilizer, labor and land – has pushed the company to reconsider its business model. It has diversified into renewable energy, biofuel production and sustainable real estate development. Fibria’s goal is to make these portfolio additions 20% of total free cash flow by 2025, making the company less pulp-dependent and giving it alternative options for future business growth in light of looming sustainability challenges.

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  • Flickr image by Melanie Holtsman

    Our economies in their present forms are unsustainable. Our planet has been subjected to the Great Acceleration of humankind’s impact, which presents immense risks to the health of the biosphere and our civilization. Our impact is directly linked to global economic growth.

    At SustainAbility, as we argued in our report Changing Tack, business can be a great driver of change but the present rules of engagement in business, finance and markets are largely unchanged since the 19th century. Meanwhile, global growth has stalled and, eight years after the financial crash, many developed world economies continue to be moribund. A change in how we run our economies and business is urgently needed. And for that we need leadership.

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  • Flickr image by Mary Anne Enriquez

    This article was co-written by Lindsay Clinton and Rochelle March.

    Last year, the CEO of Fortune 250 energy provider NRG wrote a letter to shareholders about the lack of innovation in the energy industry. “There is no Amazon, Apple, Facebook or Google in the American energy industry today,” David Crane wrote. “NRG is not that energy company either, but we are doing everything in our power to head in that direction – as fast as we can. But we need to pick up the pace further, and that is what we intend to do.”

    Although NRG’s portfolio still includes 30% coal-generated power, it is repositioning itself and its business model to guide energy users from a grid-based power system to a distributed generation system. It’s also developing products and services related to electric vehicles, rooftop solar and home energy efficiency.

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  • Where to Find the Holy Grail of Customer Engagement

    24 Jun 2015 – Rebecca O'Neill

    Flickr image by Nicolas Nova

    The potential for consumers to affect sustainability outcomes is on the rise. Thanks to the ever-increasing amount of information on the affects of products in a supply chain, the power of the consumer seems to be growing.

    However, whether they actually use that information to make better decisions with their wallets is the million-dollar question that continues to vex the sustainability community.

    As the debate trundles on over whether consumers really do care, innovative initiatives, platforms and tools are emerging that transform consumer behavior to more effectively embrace a sustainable future.

    Consumer engagement was one of SustainAbility’s 10 trends for 2015 and is increasingly being tackled by a wide range of brands and stakeholders.

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  • Check out the results of SustainAbility/GlobeScan's leaders survey in an engaging and easy-to-share infographic.

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  • How can we transition to a sustainable economy?

    This article was co-authored by Rob Cameron and Lindsay Clinton.

    The UK election was fought largely on the issue of the economy. The Conservatives, with its surprise majority have promised to reduce the deficit by £30 billion. Fixing the economy and balancing the books is undoubtedly of great importance for the economy—as long as it is done sustainably.

    It’s a simple fact: the economy is a sub-system of our ecosystem. And yet, it has become commonplace to believe that the opposite is true – that the economy is the dominant system.

    The consequences of prioritising the economy and GDP above all else have become all-too visible: climate change, water scarcity, deforestation, soil depletion, resource shortages—but it is not only the environment that is paying a heavy price. The current economic model can be tied to rising workplace stress and illness, obesity, malnutrition, increasing inequality, and more.

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  • Monique Oxender, Keurig

    When a company is growing and changing as quickly as Keurig Green Mountain, Inc. (Keurig), the sustainability challenges become increasingly complex. To address these issues in the most effective, comprehensive way, Keurig has drawn on external insights and expertise through its External Advisory Panel (EAP). This panel is made up of notable academics, NGOs, and industry personnel, each with relevant sustainability expertise.

    Lorraine Smith, Senior Director of SustainAbility’s office in New York, recently had the opportunity to catch up with Keurig’s Chief Sustainability Officer, Monique Oxender, to look back on the first two years of the EAP engagement process—which is facilitated by SustainAbility—to reflect on the benefits and challenges of external stakeholder engagement and to glimpse at the path ahead.

    Lorraine Smith: To set the stage, can you tell us why Keurig created a formal external engagement process in the first place?

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  • It has been more than two decades since policymakers, scientists, NGOs and other changemakers gathered in Rio de Janeiro for a historic summit that would set the direction of sustainable development for years to come. Since the 1992 Earth Summit, progress on climate change and sustainability has been uneven, and, many will argue, disappointing. As the date of the United Nations climate change conference in Paris approaches, the global community is facing another seminal year, building hopes that the December 2015 summit will mark the beginning of a new chapter with ambitious goals and more decisive action.

    For SustainAbility and GlobeScan’s annual Sustainability Leaders survey, we asked expert stakeholders representing business, government, NGOs and academia across 82 countries to evaluate the progress that institutions have made since the 1992 Earth Summit and reflect on their expectations for the next 20 years.

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  • Flickr image by SecretLondon123

    Not many of us saw that coming did we?! I’m referring, of course, to the extraordinary outcome of last week’s UK election. As I write, David Cameron is making the finishing touches to his new government that, naturally, is claiming a mandate for its policy portfolio. Will we see the sustainability agenda figure highly in this portfolio?

    This was an extraordinary election for many reasons; not least that 3.9 million people voted for UKIP – not to be glossed over, but not a topic for this piece. Of more interest here is that over a million people voted for the Green Party. Is this the beginning of a “green political revolution”? I wish it were so, but sadly I doubt it.

    For some years, I have wondered whether our broad range of sustainability concerns adds up to a full political agenda. Or rather, should we be campaigning for those sustainability issues to be addressed across the political spectrum? Indeed, some people turned this question into a criticism of the Greens: that they were more “campaigning group” than “party.”

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  • John Elkington at the SustainAbility London office

    The SustainAbility London office regularly invites practitioners from within our network to speak to the team over lunch to share insights from their own work as well as their perspective on the sustainability landscape at large.

    SustainAbility was pleased to host John Elkington, Co-Founder and Honorary Chairman of SustainAbility, and the Volans team to discuss their latest publication The Stretch Agenda, a report intended as a playful provocation to big business to redefine the future of leadership in the Breakthrough Decade from 2016 to 2025.

    The Stretch Agenda is a dramatised portrayal of conversations that are already taking place in boardrooms across the Global C-suite. The piece in written as a “playper,” as opposed to a traditional report format, to provide fresh voices and perspectives on the sustainability agenda from the point of view of top decision-makers and strategists within a fictitious global company, ‘MN-Co’. The reader is given insight via a discussion between the Chair, CEO, CFO, CHRO, CMO and an incoming CXO (Chief Sustainability/Stretch Officer) and two young leaders as they ponder how to shift their company’s business model to address the economic, social and environmental challenges that lie ahead.

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  • Adrian Henriques in the SustainAbility London office

    The SustainAbility London office regularly invites practitioners from within our network to speak to the team over lunch to share insights from their own work as well as their perspective on the sustainability landscape at large.

    We were delighted to welcome Adrian Henriques, independent adviser on corporate transparency, public sector accountability, and civil society development. Adrian is an experienced sustainability professional with more than 15 years in the field. He independently researches and advises both the private and public sectors – for the likes of M&S, Camelot, GRI and social enterprises – and is a Visiting Professor of Accountability and CSR at Middlesex University Business School.

    With a long career in sustainability and the accountability agenda, we were interested to hear Adrian’s perspective that “optimism is quite dangerous” in regards to the evolution of corporate sustainability and CSR over the last 15 years. Below are the highlights from our discussion.

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  • Flickr image by fauxto_digit

    SustainAbility’s recently released research See Change: How Transparency Drives Performance proposes a solution to the stalled state of sustainability reporting and transparency. See Change highlights three key elements that must be addressed in order to gain the most value from transparency and reporting efforts: materiality, valuation of externalities and integration. This is the last in a three-part series that explores those elements.

    Earlier in this series we explored how materiality and the valuation of externalities enable companies to focus their transparency efforts and leverage the value of sustainability reporting. This final article discusses how companies can apply materiality and externalities valuation to integrate sustainability across the business.

    True integration of sustainability means that material issues effectively are addressed within business functions and seen as critical to the company’s viability. Integration enables companies to understand internally, and — where relevant — communicate externally, how they create value and to better manage performance on critical issues.

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  • Is CSR really dead?

    Prognoses and Prognostications
    As 2014 closed and 2015 began, there were numerous “top,” “best” and “most important” lists marking notable 2014 occurrences and forecasting what to expect in 2015. SustainAbility entered these sweepstakes with our 10 Trends for 2015, which distills our thinking from the past year and predicts the issues that will shape the sustainable development agenda in the 12 months ahead.

    Our 10 select issues include – as headlines and subtext – global warming and climate activism, water, marketplace disruption, business model innovation, workforce diversity, ongoing efforts to eradicate slavery and more. The breadth of topics illustrates how varied this field has become and hints at the complexity any organisation faces in terms of managing such numerous and disparate issues well. …

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  • When you work in the corporate world you end up using a lot of jargon. Jargon encourages a type of tribalism and recent studies have shown that employees are far less likely to be engaged with a company’s mission when jargon is rife.

    SustainAbility has joined forces with the All Purpose Research Institute Ltd and the Fair Oratory Organization Ltd to research the use of jargon and acronyms in the workplace. The results showed that almost half of all employees found jargon to be extremely frustrating. “It negatively impacts the operational potential of blue sky discussions and outputs,” says Jo Mumbo, Head of Communications at the All Purpose Research Institute Ltd. “We need to ensure we stop chasing butterflies and take forward more clear-water dialogues that better identify primary engagement touch points with our clients and stakeholders.”

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  • The roles of materiality, externalities, and integration in See Change's infographic

    This piece was originally published in the spring issue of Radar Magazine – Issue 06: The Place of Sustainability.

    Information is powerful. In our report See Change: How Transparency Drives Performance we found that sharing the right information in the right way with stakeholders can improve companies’ decision-making and drive change. Transparency on how a business generates value (for the economy, society, and the environment) can explain to stakeholders what impacts – both positive and negative – a company has, which material issues are most important, and where business opportunities may lie.

    We’re beginning to see more companies include business model diagrams on websites and in their sustainability and annual reports. This is in part driven by guidance provided by the IIRC’s Integrated Reporting Framework, which advises companies to describe the ways in which they create value. The Sustainability Accounting Standards Board (SASB) is also encouraging US companies to consider their business models as it includes ‘Business Models & Innovation’ as one of the ESG issues it has included in the standards it is developing. Companies like Novelis, Fibria, Natura, Astra Zeneca, Unilever, and Mitsubishi are including business model illustrations in their reports to help explain their priority issues and performance. …

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  • Hemma Varma, Senior CSR Manager Europe at Marriott Hotels, at the SustainAbility office

    The SustainAbility London office regularly invites practitioners from within our network to speak to the team over lunch to share insights from both their own work and on the sustainability landscape at large.

    We were delighted to have Hemma Varma, Senior CSR Manager Europe at Marriott come in to talk to us about their sustainability strategy. Hemma’s focus is on managing partnerships with charities and advocacy groups, driving employee engagement and supporting Marriott’s 20/20 youth vision. With 350,000 staff worldwide and hotels in over 72 countries, the depth and diversity of sustainability issues that Marriott faces are vast, touching practically every facet of the corporate social responsibility spectrum.

    Beginning as a family run business in 1927, Marriott has always stuck to its roots, placing great importance on community engagement and adopting the view that what it takes from the community, especially in terms of employees, it should give back. The founder’s philosophy, “Take care of our associates and they will take care of the customers” is now a widely accepted way of thinking in business but Marriott was embracing this value long before the terms ‘CSR’ or ‘employee engagement’ even existed. …

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  • Image © CC Paul Lowry

    For over 25 years, companies have valued our ability to serve as their early warning system—to interpret emerging issues and trends in the sustainable development agenda and help them anticipate, understand, and respond to shifts in the business landscape. Our Ten Trends for 2015 series distills SustainAbility’s thinking over the past year and forecasts the issues that will shape the sustainable development agenda in 2015. This is the fourth in our series of blogs expanding upon these trends.

    One of the biggest stories of 2014 was uncertainty across the energy sector, which is set to continue throughout 2015, a seminal year in the transition towards a sustainable global energy future due to the Paris climate negotiations in December 2015. Price volatility coupled with record gains in renewable energy provision, the rise of divestment from fossil fuel companies, and growing momentum for real emissions reductions is placing pressure on society to act quickly in the fight against climate change. No actor is more impacted by these changes than fossil fuel companies. The time has arrived for them to engage constructively around the provision of energy under emissions constraints and recognize their new role in society. …

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  • Flickr image by Bill Gracey

    For over 25 years, companies have valued our ability to serve as their early warning system—to interpret emerging issues and trends in the sustainable development agenda and help them anticipate, understand, and respond to shifts in the business landscape. Our Ten Trends for 2015 series distills SustainAbility’s thinking over the past year and forecasts the issues that will shape the sustainable development agenda in 2015. This is the third in our series of blogs expanding upon these trends.

    Earlier this year SustainAbility identified global water stress, water demands that exceed water availability, as one of ten key sustainability trends for 2015—both as a supply chain risk for companies as well as an issue of political and economic significance to countries. In the trends summary, we highlighted the World Economic Forum’s identification of “water crises” as one of the top ten issues of greatest concern to the global economy in 2015. Just a few months into 2015 and with World Water Day approaching this Sunday, March 22, it’s evident that the global water crisis is indeed a critical issue with extreme water stress in Sao Paulo, Brazil and across California as just two examples.

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  • The SustainAbility team, around the world!

    In the spirit of Radar’s spring issue, The Place of Sustainability, we feature some of the recent travels of the SustainAbility team. They bring us a first-hand view of Bhutan, Sri Lanka, Brazil, Indonesia and India and a snapshot of some of the issues that currently define these diverse countries.

    Bhutan, Denise Delaney
    The Kingdom of Bhutan – or the Land of the Thunder Dragon – is sandwiched between China and Nepal with a population of three-quarters of a million people. Bhutan intrigues. There are no traffic lights. There is effectively no advertising. You will not find the outlet of a single, large multi-national company. The pursuit of happiness is the country’s greatest export.

    Gross National Happiness (GNH) measures and supports Bhutanese society across nine domains, and builds on its original four pillars of happiness: sustainable and equitable socio-economic development, environmental conservation, the preservation and promotion of culture, and good governance. Whether or not GNH will prove an effective alternative to GDP or other measures, what one of the GNH co-authors, Karma Ura, says of GNH resonated quite strongly with me: …

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