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  • Flickr image by Victor

    This piece was originally published in the autumn issue of Radar Magazine – Issue 05: Unusual Activists.

    Society always will need medicines, and medicines always will require heavy investment in research and development. But signs indicate the pharmaceutical sector’s customers — governments, insurers, foundations and patients — are increasingly not willing or able to pay as much for its products. The $84,000 price tag for Gilead’s new Hepatitis C drug and the soaring price of vaccines in the United States has left many asking, “How much is enough?” Despite more tightly controlled pricing in Europe, pressure for drug price reductions also is mounting.

    The existing margin-based pharmaceutical model neither will continue to yield traditional profits, nor will it meet the rapidly growing and changing demand for healthcare, particularly in relation to non-communicable diseases. Some new approaches are emerging, particularly in developing countries, such as GlaxoSmithKline’s low-margin, high-volume model that’s been applied in the 49 poorest nations. Yet overall, profits still rely heavily on established markets where the reimbursement system for cutting-edge products exists. Pharma companies remain focused on making the existing business model continue to yield expected profit levels and are failing to see opportunities for business growth elsewhere. …

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  • Flickr image by Dennis Wilkinson

    Reporting on an unsustainable business model

    As I was reviewing the selections for “best report” for Corporate Register’s 2015 Reporting Awards I found myself thinking, enough is enough. The most recent round of finalists includes British American Tobacco (BAT). It is true that the company is doing progressive things and has long been used as an example of a highly transparent company in a challenging industry. But if we want to create a sustainable future, can we continue to give plaudits to companies that lead in transparency and disclosure yet have fundamentally unsustainable business models? …

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  • Sustainability reporting is stalled. Companies are spending too much time and too many resources creating lengthy reports that few read. However, sustainability reporting and transparency have also brought many benefits, helping companies manage key environmental and social impacts and build trust and credibility with stakeholders. And yet, we are failing to tap into the potential value of reporting and transparency – value that could provide vital information to more directly inform decisions that drive better business and societal outcomes.

    Our latest research which launched today, See Change: How Transparency Drives Performance, proposes a solution. Informed by over 50 interviews and a survey of nearly 500 sustainability practitioners, See Change features three key elements of transparency, six case studies, and a practical tool. Specifically, the Transparency Advancement Tool guides companies to develop their transparency efforts by focusing on what is strategically important (i.e., materiality), valuation of externalities, and integration….

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  • Image by Mike Bailey

    This piece was originally published in the autumn issue of Radar Magazine – Issue 05: Unusual Activists.

    Sarah Murray, a regular contributor to the Financial Times and The Economist Group, has been writing about sustainability since the late 1990s when few reporters were covering environmental and social issues in the business press. She talks to Frances Buckingham on how coverage of the issues has changed, the role of media in calling out corporate malpractice and showcasing solutions, and the need for companies to tell the whole story.

    Frances Buckingham: How would you sum up your experience of covering sustainability issues for the Financial Times and The Economist Group?

    Sarah Murray: Over the past decade of writing for the Financial Times (FT), what started as a niche topic has become much more mainstream. Early on, the paper recognised that social and environmental challenges present risks and opportunities, and that business readers generally want to hear about solutions, not problems. The FT now has regular special reports covering sustainability topics. And while the paper has an environment correspondent, other industry reporters also cover the social and environmental issues that affect the companies that fall within their beat. In that sense, sustainability has moved out of a silo to appear in a range of sections of the newspaper. The number of white papers and research reports I write for the Economist Intelligence Unit has also increased. And while in these reports, I once covered corporate sustainability as a single issue, I’ve recently been writing on more focused topics such as energy efficient buildings or green cities. …

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  • Flickr image by Walmart Corporate

    This piece was originally published in the autumn issue of Radar Magazine – Issue 05: Unusual Activists.

    Investments in renewable energy surge worldwide, driven by improving cost-effectiveness and growing demand in developing nations. However, as uncertainty around policy remains, the continued rapid pace is called into question. …

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  • Flickr image by d2s

    This piece was originally published in the autumn issue of Radar Magazine – Issue 05: Unusual Activists.

    California’s Silicon Valley, a global epicenter of the high tech industry, is becoming the central focus of a national debate around the representation of women and minorities in technology companies. …

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  • Flickr image by thebittenword.com

    This article was co-written by Matt Loose and Aimee Watson.

    What if everyone could have access to food that meets their dietary needs without preventing future generations from meeting theirs? That’s the idea at the heart of sustainable nutrition. Increased attention to the environmental impacts of food types drives interest in sustainable nutrition, helping spur innovation and interest in those foods that can deliver nutritional value with a reduced environmental footprint.

    The agricultural footprint — the land required to grow the food sold — of the world’s largest global food companies, producers and traders is huge. As food demand increases in line with an increasing population, demand for land will grow. …

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  • Flickr image by andres musta

    This piece was originally published in the autumn issue of Radar Magazine – Issue 05: Unusual Activists.

    Global human rights violations have risen in the last decade and unless governments act to introduce stronger binding mechanisms and companies start viewing human rights compliance as an essential part of corporate accountability, progress on human rights will remain slow. …

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  • Flickr image by nachof

    This piece was originally published in the autumn issue of Radar Magazine – Issue 05: Unusual Activists.

    A series of scandals have shaken food companies sourcing and selling in China, bringing into the spotlight persistent safety concerns and forcing corporations to review traceability tools and consider working more closely with suppliers to address the problems. …

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  • Flickr image by Doc Searls

    As Climate Week drew to a close last month, the media and sustainability experts lauded the private sector for its can-do attitude towards addressing climate change. That level of action is especially welcome coming from the thousands of companies calling for a global price on carbon.

    That increasing level of commitment and action from companies must also be applied to water scarcity challenges. From droughts in California and Ohio to the continuing water shortages in India, water scarcity will become only more pressing and affect billions more people with each passing year. …

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  • This interview was originally published in the summer issue of Radar Magazine – Issue 04: Better, Connected.

    At the end of 2013, SustainAbility was pleased to welcome The Partnering Initiative (TPI) to share its London office space. TPI is one of the leading organisations driving the theory and practice of collaboration between business, NGOs, governments and others.

    Rob Cameron recently spent a morning in conversation with TPI’s Executive Director, Darian Stibbe, discussing the challenges and opportunities that cross-sector partnership and collaboration can bring to business, NGOs and governments.

    Rob Cameron: Partnering is necessary for making progress in sustainability given the scale of the challenges we face. But it is surprisingly difficult to find great examples of partnerships that really deliver. How do you make partnerships successful?

    Darian Stibbe: Firstly, there has to be an alignment of interest. We sometimes talk about ‘Davos syndrome’ in which, for example, a CEO of a company and the head of a UN agency agree to launch a partnership, but when it comes down to making it happen on the ground, there is the realisation that there is insufficient overlap of interest between the two organisations. You have to start off with a clear and necessary overlap of interest and that can be a challenge in itself. …

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  • SustainAbility Research Director Chris Guenther recently caught up with John Elkington, Co-Founder of SustainAbility and Founding Partner and executive chairman of Volans, about the launch of John’s recently published book, The Breakthrough Challenge. In addition to the book, they discuss the dilution of the sustainability agenda, the shifting role of the Global C-Suite, and the upcoming Breakthrough Decade.

    Chris Guenther: SustainAbility has closely tracked–and frequently discussed with you–your work on Breakthrough Capitalism, which you framed at the first Breakthrough Capitalism Forum in May 2012, and subsequently in the Breakthrough and Investing in Breakthrough reports. How have these ideas evolved to what is now represented in The Breakthrough Challenge, and what specifically drove you and Jochen Zeitz to write the book?

    John Elkington: I had no plans to write another book, Chris, having only recently published my eighteenth, The Zeronauts: Breaking the Sustainability Barrier. But then I got an invitation from Sir Richard Branson’s foundation, Virgin Unite, to attend a small roundtable outside Geneva. On the second day, Jochen Zeitz walked in and, I have to say, there was electricity between us around our thinking and ideas. I didn’t give it much more thought, but a couple of months later he got in touch and suggested writing a book together.

    When Jochen and I spent some days together, the book evolved further. The Virgin Unite meeting we originally attended proved to have been the gestational event for what became The B Team, a not-for-profit initiative founded and co-chaired by Sir Richard Branson and Jochen, and where I am on the Advisory Board. The idea is to bring together a global group of leaders to create a future where “the purpose of business is to be a driving force for social, environmental and economic benefit.” …

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  • Flickr image by Tim Reckmann

    When Warby Parker launched its prescription eyewear brand four years ago, it broke the industry mold by offering a unique business proposition. Whereas most eyeglass shops depend on storefronts to bring in customers, Warby Parker created a business model based on bringing the glasses to the consumers. Using their “Home Try On” system, the company’s customers can order up to five pairs of glasses to try on in front of their bathroom mirrors – for five days at no charge.

    Much has been written about Warby Parker’s hipster brand identity as well as its social mission: for every pair of glasses sold, the company donates a pair to a person in need. What I find unique about its model, however, is the potential for sustainability by way of reduced resource usage. Just like Netflix and other virtual brands that have come before it, Warby Parker is cutting energy and resource use by streamlining operations.

    Once, the consumer marketplace was almost exclusively comprised of single-purpose brick and mortar stores – the butcher, the baker, the greengrocer and even the optometrist. Later, grocery stores – and, eventually, big box stores, retail outlets and shopping malls – put several of these services under one roof. It isn’t hard to see why the department store model was so profitable: erecting a store on every corner or in every town provides customers with convenience, builds brand recognition, and can even create a sense of community. …

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  • Craig Bennett, Friends of the Earth

    This interview was originally published in the summer issue of Radar Magazine – Issue 04: Better, Connected.

    Craig Bennett rejoined Friends of the Earth as Director of Policy and Campaigns in 2010 after spending nearly four years as Deputy Director of the Cambridge Programme for Sustainability Leadership (now CISL), where he headed up the Corporate Leaders Group, bringing together business leaders to tackle climate change.

    He continues to have a foot in both business and NGO camps and lectures on several executive programmes at business schools. He is also on the Net Positive advisory panel for Kingfisher. SustainAbility Director Zoë Arden spoke with him about bees, business as campaigners and how companies should be more engaged in policy.

    Zoe Arden: Stakeholder engagement has been mainly business-driven to date. How have engagements with business evolved from an NGO perspective? As we move into an era of greater partnership and collaboration, what are the emerging challenges for the NGO sector?
    Craig Bennett: I think one of the first things to do is differentiate between the types of NGOs and understand the difference between those that campaign, or try and effect policy in one way or another, and those that are ‘service providers.’ …

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  • Sustainability reporting is stalled. That is, reporting is simply not driving as much impact as it could.

    This is not to say that reporting has not evolved since its early days or led to important and useful information and action. It certainly has. Companies that have been monitoring and reporting on an array of social and environmental issues spanning many years have created numerous baselines, data sets, subject-matter expertise and collaborative relationships upon which to build.

    Impact-wise, reporting has enabled efficiency gains, informed stakeholders about key issues, enhanced corporate reputations, and started to inform some investor decisions. …

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  • Image © CC Ilias Bartolini

    An abbreviated version of this piece was originally published in the summer issue of Radar Magazine – Issue 04: Better, Connected.

    Although a proposed increase in the US minimum wage stalled in Congress in early 2014, inequality has not lost momentum, and if anything, is poised to remain high on the global agenda. The Initiative for Responsible Investment at Harvard held a webinar on “Income Inequality and the Potential Risk to Investors” earlier this year, concluding that any company that furthers inequality could face substantial revenue losses from disengaged employees, lawsuits and reputational costs. McDonald’s echoed this sentiment by including inequality as a material risk in its latest 10-K. Meanwhile, the International Monetary Fund has become an unusual, though strong advocate of the need for countries to address income inequality because of the “dark shadow it casts across the global economy.”…

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  • Janet Voûte, Global Head of Public Affairs, Nestlé

    This interview was originally published in the summer issue of Radar Magazine – Issue 04: Better, Connected.

    After 15 years in strategy consultancy with leading firms Bain and Company and The Boston Consulting Group, Janet Voûte moved into public health as CEO of the World Heart Federation. She then spent two years as Partnerships Adviser at the WHO and became Global Head of Public Affairs at Nestlé in December 2010.

    SustainAbility has been working with Nestlé since 2006 on Creating Shared Value reporting, stakeholder engagement and strategy, and most recently arranged the company’s fourth stakeholder convening in London. Rob Cameron spoke with Janet about the increasing importance of speaking the language of both business and NGOs and Nestlé’s stakeholder engagement journey.

    Rob Cameron: How would you characterise stakeholder engagement when you arrived at Nestlé?
    Janet Voûte: I arrived a few years after the terminology and thinking around Creating Shared Value (CSV) at Nestlé had been launched, and the focus on being the leading nutrition, health and wellness company had been clearly defined. Additionally, the Chairman and the Public Affairs team had also agreed upon nutrition, water and rural development as priority areas for action. …

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  • Image © CC Außerirdische Sind Gesund via Compfight

    An abbreviated version of this piece was originally published in the summer issue of Radar Magazine – Issue 04: Better, Connected.

    From consumer pressure driving Tesco to ban sweets and chocolates from checkouts in all of its stores to the formation of campaign groups such as Action Against Sugar in the UK earlier this year, there is once again a convergence of stakeholder momentum around the major health and economic costs associated with sugar-related health problems including obesity. …

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  • Image © Libelul: Flickr

    An abbreviated version of this piece was originally published in the summer issue of Radar Magazine – Issue 04: Better, Connected.

    While the looming threat (and the perception of) climate change becomes more pronounced and immediate, we are seeing responses diverge in expected and unexpected ways. Recent efforts to broaden engagement on climate change, from the IPCC and US National Climate Assessment, focus on making climate risk relevant and tangible to people’s everyday lives. In the investment community, shareholder activism continues to be an influential front, with 12 US companies asked in 2014 to explain carbon asset risks via shareholder resolutions. A resolution on stranded assets at Anadarko Petroleum Corp. garnered the highest support ever for a carbon asset risk resolution (30% of the vote). …

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  • image © x_tine, Flickr

    This post has been co-authored by Michael Harvey and Margo Mosher.

    Materiality has taken the main stage of the sustainability agenda – and for good reason. The practice of identifying and prioritising the sustainability issues that matter enables a company to make better decisions overall. When business leaders make decisions that recognise both financial and sustainability material issues, and the relationships between them, they can position their businesses to effectively manage operations and set strategies for the long term.

    Conducting a robust materiality assessment that focuses on the most strategically material issues and engages corporate strategy teams in the process involves understanding:

    • How can the materiality assessment process better serve the changing needs of a company?
    • How can the outputs of a materiality process be integrated into the business?
    • What is the best way to communicate the outputs of a materiality process, internally and externally?
    • Who needs to know about these issues from the company’s perspective, and how can they use this information?

    SustainAbility has revised its own approach to materiality to help companies achieve greater integration of the outputs within this process. This approach – or “materiality 2.0” – addresses the above questions in a way that builds on existing good practice and reflects what we see as representing the next step in the evolution of materiality approaches. …

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