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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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  • 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 © 38 Degrees

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

    38 Degrees is one of the UK’s biggest campaigning communities, with over
    2.5 million members. Members link up online and offline to discuss and vote on which issues the organisation campaigns on together. Zoë Arden talked to Maddy Carroll, Director of Campaigns at 38 Degrees, about the rise of ‘people-powered’ movements.

    Zoë Arden: Can you tell me about how the organisation started?

    Maddy Carroll: 38 Degrees started in 2009 when the political establishment kept talking about widespread apathy amongst the British public. But the public wasn’t losing interest in politics, they were losing faith in politicians; they still cared very much about the issues. 38 Degrees came out of a model of campaigning that started in America with an organisation called MoveOn bringing large numbers of people together to campaign on issues they care about.

    The ‘Stop Forest Sell-Off Campaign’ that started in 2010 was a very big moment for 38 Degrees. It was a campaign that really went to the heart of so many people in the country – preventing the sale of national forests to private companies. …

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  • This piece was originally published in the autumn issue of Radar Magazine – Issue 05: Unusual Activists. The interview was conducted by Mark Lee and Chris Guenther.

    In the spirit of this issue’s theme covering different types of campaigning, SustainAbility’s Executive Director Mark Lee and Director of Research Chris Guenther interviewed Aaron Frank of Disney about the recent launch of its corporate citizenship platform Be Inspired. Having worked alongside GlobeScan to help Disney develop the platform last year, we were interested to learn how the company is communicating the meaning and purpose of Be Inspired to internal and external stakeholders, and to hear what role Aaron thinks companies have in campaigning for sustainability.

    Mark Lee / Chris Guenther: Aaron, before we plunge into this interview, can you explain your role and how you came to Disney?

    Aaron Frank: I am Director of Corporate Citizenship, Insights and Integration at The Walt Disney Company (Disney). Our team develops and monitors overall citizenship strategy at Disney, including spearheading the recent development of Be Inspired. We also deliver cross-cutting citizenship work like stakeholder engagement, impact measurement, and reporting. …

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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 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 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 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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  • 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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  • Flick image of step pyramid by Ed Yourdon

    In 2004, the late CK Prahalad, an influential management professor and author, published The Fortune at the Bottom of the Pyramid, a book that urged companies to use a new lens to view the poor. Prahalad advocated for envisioning those at the bottom of the economic pyramid as producers and consumers of products, rather than merely as philanthropic beneficiaries.

    Ten years later, several large companies have adopted Prahalad’s ideas and, in the process, have demonstrated that serving the “base of the pyramid” consumer can make good business sense. I analyzed several of these “base of the pyramid” business models — what we call “Building a Marketplace” — in Model Behavior: 20 Business Model Innovations for Sustainability, a report that I co-wrote and released earlier this year….

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  • This article originally appeared in Radar Issue 03: What Chance Change? Exploring Sustainable Finance.

    As the world’s multinational banks move, lend, invest and protect money for customers and clients in the decades to come, they can play a major role in the context of sustainable development.

    They must for three main reasons. First, they can enable sustainable growth. The unique capabilities of multinational banks, principally the large universal and investment banks, make these entities key enablers in the shift to more equitable distribution of income and the long-term investments needed to support more sustainable development.

    They can also contribute to financial stability. The health of the global economy is inextricably linked with banks’ success. By better managing their own health, banks can contribute to a strong, resilient global economy that protects jobs and livelihoods, avoids collapse in the face of external shocks, and in doing so, provides a platform for more sustainable forms of growth. …

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  • Flickr image by Melissa Wiese

    This interview originally appeared in Radar Issue 03: What Chance Change? Exploring Sustainable Finance.

    Scientific consensus seems to be growing that there is a causal link between excess sugar consumption, rising obesity and Type 2 diabetes and other NCDs. Analogies such as sugar is the new tobacco have grabbed headlines recently alluding to the addictive nature of sugar, and food products such as fizzy drinks are particularly under fire due to the high sugar content that is ingested very quickly.

    Although this isn’t a new issue, in recent months we have seen campaigners, governments and investors increasingly pay attention to the major health and economic costs associated with sugar-related health problems. Last year a report from Credit Suisse’s Research Institute brought into focus the staggering health consequences of sugar. The report revealed that approximately 30%–40% of healthcare expenditures in the USA are attributed to addressing issues closely tied to the excess consumption of sugar. The WHO has published draft guidelines that recommends people halve the amount of sugar in their diet from 10% of total calorie intake a day to a target of 5%. …

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  • Flickr image by clairebear83613

    Which business model innovations have the most promise for sustainability? How are leading companies exploring them? What role can companies play in advancing more sustainable business models?

    These are a few of the questions posed by SustainAbility’s latest think tank work, Model Behavior: 20 Business Model Innovations for Sustainability. In March, we held roundtable events in London and New York with representatives from Barclays, Cisco, Estée Lauder, Ikea, L’Oréal, Mitsubishi and Vodafone, among other organisations. Below are a few of the ideas we discussed. (As we held the discussions under Chatham House Rule, quotes from the discussion included below are edited to provide anonymity.)

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  • Flickr image by matthewthecoolguy

    At the end of 2013, we asked a select group of clients and experts from our network what they thought would be on the horizon for sustainability in 2014. We published over 20 responses in the most recent edition of Radar and from time to time, we’ll highlight those responses on our blog.

    “I see the emergence of a new approach to sustainable marketing, an approach that is in tune with how consumers shop: moving away from the ineffective approach of just giving consumers information to constructing a shopping environment that will help consumers notice, remember, see and ultimately buy sustainable brands.”
    — Daniel Vennard, Global Sustainability Director for Brands, Mars Inc.

    “An increased focus on ESG materiality assessment as a mainstream corporate responsibility practice (with the new focus on materiality in the GRI G4 guidelines, SASB, and IIRC efforts).”
    — Steve Lippman, Director, Corporate Citizenship, Microsoft …

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  • Rob Frederick is Vice President and Director of Corporate Responsibility at Brown-Forman, a global producer of spirits and wines including brands such as Jack Daniels, Finlandia, Herradura and Woodford Reserve. Prior to joining Brown-Forman, Rob helped define and implement sustainability strategy at Ford Motor Company.

    Rob was a client of SustainAbility at Ford and continues to work with us at Brown-Forman. Michael Sadowski, VP at SustainAbility, leads this work and recently spoke with Rob to discuss his corporate experience to date and the most material issue for a spirits and wine company – responsible drinking.

    Michael Sadowski: You were at Ford during the early days of its corporate responsibility (CR) efforts and helped start Brown-Forman’s CR program. How do you compare your experiences at Ford and Brown-Forman?

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  • The idea of business model innovation—that a company could launch a new business model never conceived of before, or transform an existing business model—has long captivated business leaders. And yet, executives are often held back by vested interests in their current approach: “If it ain’t broke, don’t fix it.” But as global trends—environmental, social, political, technological—continue to shift the foundations of our current business models, incremental innovation will become less effective in enabling companies, industries and whole economies to adapt and succeed. There is an urgent need for fundamentally different approaches to value creation….

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  • In December we wrote about the top trends that our team tracked in 2013. If you missed them, here’s a summary to help you navigate to the main articles….

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  • Following a number of 2013 supply chain crises, such as the horsemeat scandal (which saw Findus and others forced into recalls), there has been an emergence of technologies which trace a product’s journey from source to store. Image © London Permaculture

    This is post 6 of 10. See next or previous.

    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. In 2013, SustainAbility re-launched a dedicated function to regularly track and interpret “what’s next”—our Ten Trends of 2013 series is the distillation and public output of our thinking over the year.

    “There is no point in wishing the complexity away—it’s already here…” My colleague Lorraine Smith wrote this while assessing the state of transparency in the corporate sector today, evoking a thread that ties far-flung supply chain crises erupting in 2013–from the apparel sector’s Rana Plaza factory collapse to the food and retail sector’s horse meat contamination scandal. Technology to trace product supply chains from source to store has emerged strongly in 2013 as a pathway to understand and address the complexity, while foreshadowing its potential future role as an enabler of collaboration within and across companies’ value chains….

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  • The expanding legitimacy of waste picking. Image of Filipino waste picker by Global Environment Facility, Flickr.

    This is post 3 of 10. See next or previous.

    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. In 2013, SustainAbility re-launched a dedicated function to regularly track and interpret “what’s next”—our Ten Trends of 2013 series is the distillation and public output of our thinking over the year.

    From 1900 to 2000, global population increased just under four times, while the amount of waste produced by humans increased ten times. With waste set to double again by 2025, and the world facing a number of drivers (e.g. less space for landfills, urbanization, volatile commodity prices) that are already upending the status quo, a variety of actors are viewing waste as an enormous business opportunity….

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