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Monday, July 30, 2007
FORMULA ZERO REBRANDS
One of the European social enterprises we keep an eye on, Formula Zero, aims to promote the use of hydrogen power in motor racing, starting with go-karts. The project, which is supported by Shell Hydrogen, has just launched new branding and moved into a second office in Rotterdam. If you're intrrested in keeping posted, there's an electronic newsletter, available from http://www.formulazero.nl/
posted by John Elkington @ 11:06 AM
Thursday, July 26, 2007
BLESSED UNREST
A leading environmentalist and social activist, Paul Hawken has also been a long-standing member of SustainAbility's Faculty - not least because of his previous books, including The Ecology of Commerce. And here's a cage-rattling quote from that book, first published in 1993: "The dirty secret in environmentalism is that there is no such thing as sustainability. Habitats can endure over millennia, but it's practically impossible to calculate the sustainability of specific fisheries, tracts of land, and actual forests. We have also probably already passed the point where present planetary resources can be relied on to support the population of the next forty years. Any viable economic program must turn back the resource clock and devote itself actively to restoring damaged and deteriorating systems - restoration is far more compelling than the algebra of sustainability." So much for the pessimist's take. Paul's latest book is very much an exercise in clear-eyed optimism. Blessed Unrest is sub-titled 'How the Largest Movement In the World Came into Being and Why No One Saw It Coming' and investigates the worldwide movement for social and environmental change, "from billion-dollar nonprofits to single-person dot.causes." As he notes, "these groups collectively comprise the largest movement on earth, a movement that has no name, leader, or location, and that has gone largely ignored by politicians and the media. Like nature itself, it is organizing from the bottom up, in every city, town, and culture. and is emerging to be an extraordinary and creative expression of people's needs worldwide." Social and environmental entrepreneurs (Hawken among them) are very much at the leading edge of this phenomenon.Blessed Unrest is published by Viking Press, New York (http://www.blessedunrest.com/).
posted by John Elkington @ 6:26 PM
A NEW GREEN CONSUMER?
 SustainAbility got its start in the consumer arena, publishing the first Green Consumer Guide nearly 20 years ago, a book which sold around a million copies worldwide and helped jump-start a new round of consumer pressure on business. When it peaked in the 1990's, the green consumer movement was comprised largely of educated, middle class women (aka soccer moms). At the time, research showed that 70 percent of green consumers were women, strongly skewed towards two groups: first, pregnant women or recent mothers, and second mothers with school-age children, who tended to come home and ask tricky questions about products and packaging. But what goes up can come down - and when the second great societal pressure wave (peaking 1988-1991) began to fall away, green consumer activity began to fade, even though the shock-waves continued to reverberate, encouraging companies to carry out environmental audits, invest in product life-cycle assessments and, eventually, to begin environmental reporting. With today's tidal wave of media coverage around climate change - and the resulting rise in awareness about the issue - we wonder if there isn't a new green consumer emerging. If social and environmental entrepreneurs are accurate signposts for future markets, there most likely is. Take GreenKnickers for example. A London-based start-up, GreenKnickers markets sustainable - you guessed it - knickers! (For my American friends... they sell underwear.) By making 'green' fun, hip and somewhat irreverent, the company is attempting to reach a cooler crowd. Speaking of cool... Global Cool, which is headed by former Man Group guy, Julian Knight, is using celebrities to encourage and enable at least one billion people to reduce their greenhouse gas emissions by at least one tonne for the next ten years. A big target for them is India - and they've brought in Bollywood to help with the cause. And one of my recent favourites is a start-up called diykyoto, which has designed a home energy monitor called 'The Wattson'. This very i-pod-looking device glows blue when your home energy use is efficient and red when you're guzzling. Information is a powerful tool for change. But it's even more powerful when it's packaged in an iconic, must-have device. Trying to motivate a broader audience may prove challenging, however. Anecdotal feedback from those attending the Live Earth concerts suggest that most were there simply to see the stars. And, a recent post by Joel Makower is a painful reminder of how difficult it is to motivate the masses around green. (See Joel's 25 July post.) So, how can Global Cool ensure that it moves people to action beyond its star-studded events? And, how can the folks at GreenKnickers and diykyoto ensure they don't become last year's fad? According to a colleague at IDEO, companies must ensure that they are in the consumer's 'direct line of sight' - truly tapping into what's motivating that consumer to action. Or, as Joel Makower notes - 'marketers must not only help consumers to understand the problem, but to actually care about it.' No easy task. If you know of organizations that are up to the challenge, you may want to submit their names to Century Films, which is spearheading the latest Participant Productions (producers of An Inconvenient Truth) mainstream media blitz on the issue. See the Green Awards site more information.
posted by Maggie Brenneke @ 3:17 PM
Wednesday, June 13, 2007
BUSINESS & HUMAN RIGHTS RESOURCE CENTRE
One of my favourite social entrepreneurs is Chris Avery, the man responsible for developing the Business & Human Rights Resource Centre and related website, initially inside Amnesty International UK, and then as a spun-out, independent entity. Declaring a very real interest, I sit on the Centre's Board of Trustees - and congratulate the team on their revamped website, which has been launched today at http://www.business-humanrights.org/Home The new design makes it easier to:
· Search for a company and check its human rights record – with over 3600 companies covered
· Stay up-to-date with 'News' and 'Feature of the week' on the homepage
· Check how companies are responding to concerns raised about their conduct
· Explore the archive of news & reports on over 160 sectors; 180 countries; 160 issues
· Access 'Special resources', including all materials by UN Special Representative John Ruggie
· Sign up for free Weekly Updates.
posted by John Elkington @ 3:07 AM
Monday, June 11, 2007
20 YEARS ON FROM BRUNDTLAND
Given that 2007 is the twentieth anniversary of the Brundtland Commission report, Our Common Future, which helped put the concept of sustainable development on the international agenda, it is hardly surprising that SustainAbility has found itself involved in a growing number of events and projects designed to look back, assess progress and then look forward. One of these has been our Raising Our Game project, whose report is now downloadable from our website (http://www.sustainability.com/raising%2Dour%2Dgame/). Separately, a two-part SocialFunds.com article on the theme can be found at http://www.socialfunds.com/news/article.cgi/2308.html
posted by John Elkington @ 11:24 PM
Wednesday, June 06, 2007
SUSTAINABILITY PROFILED IN SKOLL NEWSLETTER
The latest issue of the Skoll Foundation eNews newsletter carries a profile of our work in the social entrepreneurship space. For a copy, http://www.skollfoundation.org/newsletter/053107.htm
posted by John Elkington @ 12:03 PM
Monday, June 04, 2007
LOOKING FOR UK'S SOCIAL ENTREPRENEUR OF 2007
Do you consider yourself to be a social entrepreneur? Alternatively, do you know someone who is a social entrepreneur? In either case, this message could be for you. Here are brief details of the Search and Selection process for the 'Social Entrepreneur of the Year' award, an initiative of Schwab Foundation for Social Entrepreneurship in association with the The Independent and The Boston Consulting Group.
If you want to know how you would measure up, check out the criteria for selection. For more details, take a look at www.schwabfound.org/unitedkingdom. Having read the criteria for selection, if you believe you qualify as a candidate, fill out the simple on-line application form by July 2, 2007 . Alternatively, if you think you know someone who should be a candidate, forward the link to him or her. For information on the selection process, click on the link. And for more information on the project as a whole, contact: seoy@schwabfound.org.
posted by John Elkington @ 5:02 PM
Friday, June 01, 2007
RAISING OUR GAME
Our second report as part of our Skoll Program was launched in London today. It is now posted on our website (http://www.sustainability.com/raising%2Dour%2Dgame/). Raising Our Game: Can We Sustain Globalization? looks out to 2027 to examine future scenarios for sustainable development, and proposes a new set of rules which could help business rise to the unprecedented challenges ahead. The report looks at the trade-offs involved in future choices over environmental and social value, and at the role to be played by innovation, entrepreneurship and the emerging economies of the South. There will be winners and losers, but no more business as usual. For more information or to register your seat at one of our launch events, please contact Ritu Khanna at raisingourgame@sustainability.com
posted by John Elkington @ 12:37 AM
Thursday, May 31, 2007
THE BOTTOM BILLION
"The future challenge of development will not be about global poverty reduction," says Paul Collier, controversially, in his new book, The Bottom Billion: Why the Poorest Countries are Failing and What Can Be Done About It (Oxord University Press, May 2007). Instead, he argues, "world poverty is already falling rapidly. It will be about a group of around 50 failing states, mostly small, that are diverging from the majority of the world, and are often in absolute decline. " Within such states, Collier concludes, "a struggle is already waging between corrupt leaders and reformers, but it is the corrupt who are winning. The problem of failed states is due to traps such as civil war, dependence upon natural resource exports, and bad governance." Globalization, he suggests, "is reinforcing these traps, rather than breaking them, even as it helps to drive development in more fortunate countries."
posted by John Elkington @ 3:49 PM
Wednesday, May 23, 2007
CALLING ALL SOCIAL VISIONARIES
The Schwab Foundation has launched a competition to uncover the world's most successful social entrepreneurs. They are currently looking at the following countries: Brazil, Israel, France, Chile, Colombia, United Kingdom, Argentina, United States, and Switzerland. If you or someone you know is a social entrepreneur in any of these countries - check out competition details for Social Entrepreneur of the Year at: www.schwabfound.orgApplication due dates range from 31 May to 2 July - so hurry! Best of luck!
posted by Maggie Brenneke @ 4:33 PM
Thursday, May 17, 2007
SOCIAL EDGE DEBATE
We are facilitating a debate on Social Edge this week, focusing on some of the conclusions of - and questions raised by - our first Skoll Survey, Growing Opportunity: Entrepreneurial Solutions to Insoluble Problems (http://www.sustainability.com/news-media/news-resource.asp?id=938).if you're interested in taking a peek - or, even better, participating - you'll find the debate at:http://www.socialedge.org/discussions/social-entrepreneurship/survey-of-social-and-environmental-entrepreneurs
posted by John Elkington @ 11:34 AM
Wednesday, April 11, 2007
MEET THE NEXT GENERATION OF CHANGEMAKERS
 Disarming youth soldiers in Africa - Battling blindness in India - Stopping sex slavery in Sri Lanka. Remarkable aims and accomplishments in their own right. Even more remarkable if you consider that these are efforts launched by teens. The power of the millennial generation to change the world was the focus of the Brick Awards last night at the Nokia Theater in New York's Times Square. Founded by Andrew Shue (of Melrose Place and LA Galaxy fame), Do Something hosts these annual awards to showcase the passion and potential of young people. And, I was clearly not the only one moved by these stories - event presenters included Susan Sarandon, Wyclef Jean, and LeAnn Rimes. Get inspired - watch the awards this Thursday, 12 April at 9pm EST on The CW.
posted by Maggie Brenneke @ 10:42 PM
Friday, April 06, 2007
CEMEX'S 'DECLARATION OF IGNORANCE'
An interesting article on the story of CEMEX's commercial adventures at the base of the pyramid , "building markets one brick at a time," can be found on the World Business Council for Sustainable Development (WBCSD) website, at http://wbcsd.org/plugins/DocSearch/details.asp?type=DocDet&ObjectId=MjMyNzc.
WBCSD notes that: "CEMEX issued a 'Declaration of Ignorance' – something companies rarely if ever declare. The company basically said it had no idea how to reach the millions of poor Mexicans who spend as much as 10 years building the average fourroom home on their own, in fits and starts dependent on irregular income and spikes in material prices. It set out to study the do-it-yourself home building business that dominates Mexico, especially in the ad hoc neighborhoods that seem to pop up almost overnight on the fringes of Mexico’s cities. The company radically changed its standard approach to market research, and sent a team of managers to live in these neighborhoods for a year, immersing themselves in the daily lives of their potential customers. The result was Patrimonio Hoy."
WBCSD goes on to say: "By organizing families into 'buying clubs', the scheme has helped more than 150,000 Mexican families build and/or improve their homes. In 2006, Patrimonio Hoy (literally: 'inheritance today') began to expand into Colombia, Venezuela, Nicaragua and Costa Rica, creating new markets on a continent where, according to the Inter-American Development Bank, 65% of the population is deprived of the use of formal markets."
posted by John Elkington @ 10:49 AM
2007 SKOLL WORLD FORUM
This post was originally filed on 29 March, but then disappeared from the blog. Reposting to original date has proved impossible. From the music of Salman Ahmad and the gentle wisdom of Charles Handy through to the thoughts of David Galenson on the different forms of creativity and Larry Brilliant (of Google.org) on reasons for optimism, this was an unbelievably rich banquet of ideas and - in line with this year's theme of 'Innovators in Action' - there was a regular jolt of electricity from social and environmental entrepreneurs from, by Jeff Skoll's count, 40 countries on six continents. We launched our first Skoll Report, Growing Opportunity: Entrepreneurial Solutions to Insoluble Problems, co-sponsored by Allianz and DuPont (http://www.sustainability.com/news-media/news-resource.asp?id=938). And four of us (Sophia, Maggie, Ritu and I) were involved in three separate sessions. One, 'Partnering with Business,' ran on Wednesday, was chaired by Sophia, and featured Maggie, social entrepreneurs Blaise Judja-Sato (VillageReach) and Chris Elias (PATH), and leading speakers from The Bill & Melinda Gates Foundation, GE Asset Management and GSK. The second, chaired by Jan Piercy of Shorebank, focused on the challenge of accessing capital for social enterprise, and I was on the panel alongside folk like Penny Newman of Cafe Direct, Michele Giddens of Bridges Community Ventures, Tim Reith of Community Innovation UK and Arthur Wood of Ashoka.And the third, as the event moved towards its conclusion, came earlier today. I chaired a discussion with Bill Drayton of Ashoka and Ed Miliband, Minister for the Third Sector, with whom a number of us had dinner last night at the Said Business School. First time I'd met him, but was impressed by his grasp of the subject and the clarity of his delivery. Still, Larry Brilliant was a tough act to follow, particularly with his astonishing swooping in and out of the Indian sub-continent via Google Earth, or similar, in the process of demonstrating how horrendous the risk of climate change is to low-lying countries like Bangladesh.To view the Forum sessions online, go to http://www.skollfoundation.org/skollcentre/skoll_forum.asp
posted by John Elkington @ 10:43 AM
XIGI, SEX AND ALIEN ABDUCTION
The Xigi blog is starting to build well (http://www.xigi.net/), with nice recent entries by Kevin Jones on why giving can be such a buzz (April 5, 'Giving Hits the Brain like Sex and Drugs') and why attending the Skoll World Forum was like alien abduction (March 30, 'The Future Yesterday').
posted by John Elkington @ 10:04 AM
Friday, March 09, 2007
SUSTAINABILITY JOINS USCAP
SustainAbility has signed up as a 'supporter' of the US Climate Action Partnership. The USCAP (http://www.us-cap.org) is a group of businesses and leading environmental organizations that have come together to call on the Federal government to quickly enact strong national legislation to require significant reductions of greenhouse gas emissions. USCAP has issued a landmark set of principles and recommendations to underscore the urgent need for a policy framework on climate change.
The statement we provided to USCAP along with our endorsement reads as follows: "As SustainAbility enters its 21st year working with businesses to address society’s greatest challenges, we are encouraged by the leadership and courage demonstrated by the members of the USCAP. We share their sense of urgency regarding the global need to dramatically and rapidly reduce greenhouse gas emissions, and we join them in their call for national climate change legislation in the US.”
posted by John Elkington @ 12:17 PM
Thursday, February 15, 2007
X PRIZE FOUNDATION
SpaceShipOne won Ansari X PrizeMaggie (Brenneke) and I had a really fascinating session with Mark Goldstein and Christin Lindsay from The X Prize Foundation (http://www.xprize.org/) earlier today. They are promoting the new Automotive X Prize (http://auto.xprize.org/). The spirit of the Foundation and its growing number of Prizes - covering such areas as genomics, and planned to expand to embrace such areas education and poverty alleviation - seems to me to flash-distil the spirit of the social and environmental entrepreneurs we increasingly work with. A personal reflection can be found at http://www.johnelkington.com/weblog/blogger.htm (15 February, 'Revolution Through Competition').
posted by John Elkington @ 11:31 PM
Sunday, February 11, 2007
RICHARD BRANSON'S HOT AIR PRIZE
"We have no super-hero," said Branson when launching his $25 million (£13 million) Virgin Earth Challenge. "We have only our own ingenuity to fall back on." The aim: to slow or halt climate change. He was inspired to launch the prize by the example of past prizes like the Ansari X Prize, which resulted in the first private manned space flight in 2004, and the eighteenth century prize that spurred the pursuit for a device that would measure longitude. Branson is looking for a commercially viable technology that will result in "the net removal of anthropogenic, atmospheric greenhouse gases each year for at least 10 years without countervailing harmful effects." And, a condition that could keep Branson's money in the bank for a while, the technology will have to remove at least one billion tonnes of carbon dioxide from the atmosphere each year.Interestingly, The X Prize Foundation had already announced its second major prize - the Archon X prize for Genomics - and has been working on others in the social domain, among them contests designed to spur innovative thinking about poverty, hyperefficient cars and health care. But even if it achieves its aim of awarding $200 million or more in 10 to 15 new prize categories over the next five years, there is a bigger challenge still: to muster the capital it will need to take any resulting technologies to the necessary scale. For more details, see Fiona Harvey, 'Branson offers $25m prize for solution to climate change,' http://www.ft.com/cms/s/e2067f90-b867-11db-be2e-0000779e2340.html, and Matt Richtel, 'Awarder of Space Prize to Add Others,' New York Times, January 31, 2007
posted by John Elkington @ 8:27 PM
Tuesday, February 06, 2007
UNBOWED: WANGARI MAATHAI
A number of us headed across to the Royal Society of Arts (http://www.rsa.org.uk/) last night for a lecture by Professor Wangari Maathai of the Green Belt Movement (http://www.greenbeltmovement.org/). The winner of the 2004 Nobel Peace Prize (http://nobelprize.org/nobel_prizes/peace/laureates/2004/press.html), she has written her life story, Unbowed (http://www.amazon.com/Unbowed-Wangari-Maathai/dp/0307263487). A great leader, with a wonderful sense of humour. Her courage in standing up to the Moi regime was quite extraordinary. She clearly believes in peaceful protest, but she ended by saying that people very rarely decide to give up things (power, profligate lifestyles) of their own free will, which means that those without have to "do something nasty." The Green Belt Movement has been an extraordinary illustration of how environmental, social, economic and political issues can melt together, both in problems and in their solutions. And how much nastier Kenya would have been without the efforts of Wangari and her colleagues, who have planted an estimated 30 million trees to date - and are now talking about one billion! Given their track-record to date (and she quoted the man who promised them 15 million trees, when that's how many they said they wanted, but later realised to his horror that they were serious), it could well happen.
posted by John Elkington @ 3:07 PM
Saturday, February 03, 2007
SCHWAB SUMMIT AND DAVOS 2007
Climate change, trade and social entrepreneurship were the three big themes at Davos 2007, for me at least. True, others may have had a different priority list and it has taken me rather longer than in previous years to work out what was really going on during the 2007 World Economic Forum - or at least what struck me as most significant. This was partly because I plunged straight back into work on my return to London, but also because my sense was that this year really did mark a watershed year for the Forum—whether or not those attending Davos this year really grasped what is going on. So here is a personal download of both the Davos event and of the Schwab summit, which proceeded it - and this year focused on the business case both for social entrepreneurship and for mainstream business to get involved in the field. Please also see postings on my website ( http://www.johnelkington.com/weblog/blogger.htm) and for ATCA (see February 02 posting on my blog), for openDemocracy ( http://www.opendemocracy.net/globalization-climate_change_debate/fixes_4311.jsp) and for Grist (in press). But first, yes, the agenda ( http://www.weforum.org/en/events/annualmeeting2007/index.htm) was extraordinarily packed again this year, and the top two issues for the mainstream participants were clear. Climate change was ubiquitous, with 17 sessions devoted to the subject, while the other dominant theme was the need to reinvigorate the Doha Round of trade negotiations. But it struck me that something else was going on this year - and it felt a bit like a hand-over between generations. Alongside the efforts of the Young Global Leaders ( http://www.younggloballeaders.org/), my sense was that this was the year that social entrepreneurs really got into their stride in Davos. And of the clearest trends this year, again, was the growing focus on private sector, business and financial market solutions to the world’s great social, environmental and governance challenges. Multinationals are seen to have a key role to play in upholding and advancing principles on human rights, labour, environmental and anti-corruption practices in countries with weak regulatory capacity. For more on WEF initiatives in these fields, see http://www.weforum.org/en/initiatives/index.htmVery much in the spirit of this year’s summit, British Prime Minister Tony Blair sounded an optimistic note in his closing remarks. He said that the three key issues that for him dominated the annual meeting - world trade, climate change and Africa—still hang in the balance, but added that there had been progress on each that would have seemed unimaginable even a short time back. In two radical suggestions, Blair recommended merging the International Monetary Fund and the World Bank, and dramatically expanding the UN Security Council. "A UN Security Council without Germany, Japan, Brazil or India, to say nothing of any African or Muslim nation," he said, "will, in time, not merely lose legitimacy in the eyes of the world, but seriously inhibit effective action." In what follows, I will try to sketch out come of the highlights and headlines before zeroing in the social entrepreneurs - who convened for the 2007 Schwab Foundation Annual Summit at Swiss Re’s Rüschlikon centre in Zurich before heading on to Davos. I attended both events, chairing a plenary session on the business case for social entrepreneurship at the Schwab summit and was involved in a number of related events in Davos - including a fascinating session I facilitated on ‘Designing Sustainable Cities.’ Schwab SummitThis was the seventh Schwab Summit ( http://www.schwabfound.org/the.htm?p=102) I have intended, the sense now being fairly widespread that the notion of social entrepreneurship “has had a meteoric rise,” as the Schwab team put it, “particularly in the industrialised world, but increasingly in emerging markets.” It is clear that we are seeing the very early stages of a great convergence between the worlds of mainstream business and social and environmental entrepreneurship - an area SustainAbility is looking at in its series of annual surveys of the state of social entrepreneurship for The Skoll Foundation ( http://www.skollfoundation.org/). One of the key indications of the growing mainstream support came when Jacques Aigrain, CEO of Swiss Re, announced that in addition to hosting the Schwab Summit this year at their Rüschlikon centre ( http://www.ruschlikon.net/), they would also host it there in future years. Among key sessions were those focusing on how foundations and other investors decide which social entrepreneurs to support, the change-making agendas of key entrepreneurs, the business case as developed by social entrepreneurs, the mainstream business case for social entrepreneurship, how such change agents can best work in government and the public sector, and—based on a discussion about the process by which Ethos ( http://www.ethoswater.com/) sold out to Starbucks—what happens when a social entrepreneur “sells out.” For some of the story of how the founders got to this point, see http://www.ethoswater.comOverall, the Schwab Summit was even higher energy than in previous years—and excellent preparation for those social entrepreneurs who were going on to Davos. And this is an area I personally am increasingly determined to invest a growing part of my time in - as with my role with the newly announced DHL Young Entrepreneurs for Sustainability Awards, ( http://www.dhl.com/) now being piloted in five Asian countries. A Schizophrenic Davos“Shit is serious business,” is the motto of one of those entrepreneurs, Isaac Durojaiye, founder of DMT Mobile Toilets ( http://www.dmttoilet.com/), in whose delightful company Elaine and I took the train from the Schwab Summit to Davos. He is one of the Schwab entrepreneurs ( http://www.schwabfound.org/schwabentrepreneurs.htm?schwabid=3725). And it’s truly extraordinary to see these people moving between the worlds of sanitation in Nigeria, for example, and the world of Davos—this being the sixth time I have attended the WEF event. Their presence is one more sign that the world of Davos Man is experiencing seismic changes. “We are faced by a world which is increasingly schizophrenic,” said WEF Founder and Executive Chair early on in the proceedings. On the surface, the economic indicators might look fairly optimistic, but underneath a range trends are moving in less encouraging directions. “Our world is rapidly changing and power is shifting geopolitically, in business terms and even in the virtual world,” he noted. “Power, wealth and well-being are spread in ever more complex ways, leading to a world which is harder and harder to understand and which often seems alien to us.” In her plenary speech early on in the summit, Angela Merkel, Federal Chancellor of Germany, and due to take over as G8 President this year, announced efforts for "new forms of dialogue" between G8 leading industrial nations and the emerging economies such as Brazil, India and China (BIC) - along with a closer Atlantic partnership between Europe and the United States. But apart from Senators John Kerry and John McCain, US political leaders were less evidently present this year. The theme was ‘The Shifting Power Equation.’ Over the course of the five-day meeting, 2,400 participants from 90 countries convened, including 24 heads of state or government, 85 cabinet ministers, along with religious leaders, media leaders and heads of non-governmental organizations. Around 50% of the participants were business leaders drawn principally from the Forum's members - 1,000 of the foremost companies from around the world and across all economic sectors. A new survey of WEF participants found that a majority of leaders questioned think the next generation will live in a more economically prosperous world. Two-thirds (65%) say that it will be a lot more or a little more prosperous. But the same respondents also indicated that the next generation will live in a less safe world, with 61% believing it would be a little or a lot less safe. Both these figures are broadly in line with the same findings last year. But one finding that has shown a remarkable change is the doubling of those who rank environmental protection as a priority for world leaders. Warnings of the effects of climate change appear to be hitting home with protecting the environment a concern that one in five (20%) think leaders should concentrate on - a considerable increase since last year’s survey, when only 9% rated this as a priority. One of the key publications launched during the event was the Global Risks 2007 report ( http://www.weforum.org/pdf/CSI/Global_Risks_2007.pdf), which highlighted a growing disconnect between the power of global risks to cause major systemic disruption, and our ability to mitigate them. The annual Global Risks report - published by WEF in cooperation with Citigroup, Marsh & McLennan Companies, Swiss Re and the Wharton School Risk Center - suggested that many of the 23 core global risks explored in the report have worsened over the last 12 months, despite growing awareness of their potential impacts. Among the recommendations: 1. Link energy security considerations with climate change; 2. Urgently begin work on a successor to the Kyoto agreement with three central principles: ensure involvement of the US and major developing countries (particularly China and India); and recognize differential responsibilities for future emissions’ reduction dependent upon past emissions and stage of economic development—alongside and common overall responsibility for climate change 3. Renew terrorism insurance schemes scheduled to sunset in 2007; improve framework for public-private arrangements in other countries, and 4. Prepare for a pandemic, requiring governments to increase research into the identification of critical choke-points in the supply/value chain where skill sets are rare, interdependencies are greatest and the risk of triggering systemic failure is highest. Opening upThe number of NGOs seemed to have been cut back substantially this year - and the voice of those NGOs that did appear were more muted than in previous years - though I may simply have been in the wrong sessions. That said, the Forum is more open to the wider universe of stakeholders than it was even a few years back. And it experimented this year with a number of new Web applications designed to extend the discussions to a much wider audience. The major debates and discussions were open to the general public via traditional broadcast channels, but also via webcasts, podcasts and for the first time, vodcasts. Some 50 of 220 sessions were webcast. Internet users were encouraged to field questions to participants via blogs and videoblogs and selected participants were interviewed live in the virtual world of Second Life. Intriguingly, Reuters had a special Second Life correspondent in Davos ( http://secondlife.reuters.com/) and—having had a session back in London with Mitch Kapor, Chairman of Linder Labs ( http://lindenlab.com/), the organization behind Second Life, SustainAbility is now pondering how to make our own entry into this new world. A podcast featuring Mitch Kapor will be posted on the Skoll Program area of our website ( http://www.sustainability.com/insight/skoll_article.asp?id=669) within days. In terms of opening up the wider world, one of the most interesting people I met during this year’s Davos was Nick Negroponte, who is the main driver behind the One Laptop Per Child initiative - designed to provide $100 laptops to young people around the world ( http://www.laptop.org/). The climate imperativeAlthough climate change was voted onto the WEF agenda in 1999 or 2000, and has routinely surfaced since then, this year the subject was centre-stage - owing much to Al Gore’s move An Inconvenient Truth ( http://en.wikipedia.org/wiki/An_Inconvenient_Truth), the Sir Nicholas Stern’s review on the economic implications of climate change ( http://www.hm-treasury.gov.uk), and the impending report of the Intergovernment Panel on Climate Change ( http://www.ipcc.ch/). The Forum announced the formation of a new international partnership of seven organizations to establish a generally accepted framework for climate risk-related reporting by corporations. Founding members of the institutional consortium, the Climate Disclosure Standards Board (CDSB), include the California Climate Action Registry, Carbon Disclosure Project, Ceres, The Climate Group, International Emissions Trading Association, World Economic Forum Global Greenhouse Gas Register and World Resources Institute. CDSB member organizations have agreed to align their core requests for information from companies in order to ensure that they report climate change-related information in a standardized way that facilitates easier comparative analysis by investors, managers and the public. The focus will be on the disclosure of the following key climate issues in company annual reports: total emissions; assessment of the physical risks of climate change; assessment of the regulatory risks of climate change; and strategic analysis of climate risk and emissions management. Although in recent years there has been much progress in raising awareness of the importance of climate-related disclosure among corporations and their boards and shareholders, reporting of comparable information in annual reports remains the exception rather than the rule. "Consistent and comprehensive disclosure frameworks are important to the incentives shareholders provide to corporate managers to deploy capital efficiently," said Richard Samans, Managing Director of the World Economic Forum. Speaking of the initiative, Carbon Disclosure Project Chairman James Cameron said, "We feel it is well timed and can leverage the standardized voluntary carbon disclosure the Carbon Disclosure Project has achieved - most recently on behalf of 225 institutional investors with US$ 31 trillion of assets who engaged with 2,100 corporations - in a formalized, disclosure process". An advisory committee is being formed that will include industrial, financial services and accounting firms as well as other key stakeholders. In preparation, CDSB members met in Davos with representatives of Alcan; American International Group; Capital Group; Duke Energy Corporation; Ernst and Young; Royal Dutch/Shell; JP Morgan Chase; PricewaterhouseCoopers; SUN Group; Swiss Re and Tokyo Electric Power as well as UK Environment Minister Milliband; California Assembly Speaker Fabian Nunez; and United Nations Environment Programme Director General Achim Steiner. Resuscitating DohaDuring the summit, World Trade Organization (WTO) Director-General Pascal Lamy announced that the stalled Doha Round trade negotiations had been given a new impetus by talks between ministers from 30 countries. Kamal Nath, Minister of Commerce and Industry of India, declared: "Despite the cold outside in Davos, we have been able to defreeze the talks that were frozen." Both were speaking at a session on trade just a few hours after the ministers had agreed to relaunch negotiations suspended last July because of strong disagreements between developed and developing countries, and between the European Union and the United States, on how far agricultural subsidies and tariffs on industrial goods should be cut. "Today’s ministerial meeting has put quite a lot of energy into the notion that the landing zone is in sight," said Lamy. He added that he will return to Geneva to oversee fresh Round discussions at negotiator level and call ministers together again when enough progress has been made. But he will only do that if and when the right moment has come. "It won’t be tomorrow," he said. Much will depend, however, on how the developed countries move forward. President Luiz Inacio Lula da Silva of Brazil called on the international business community to lobby leaders of rich countries to make concessions in the Doha Round of negotiations for a world trade agreement. "If we want to give a signal to the poorest countries that they will have a chance in the 21st century, the United States, the United Kingdom, France and Germany must make concessions," he said. "The United States must reduce its agricultural subsidies, and Europe must ease access for agricultural products." Other PrioritiesAmong other priorities that are very much part of SustainAbility’s agenda were human rights (which I address through my role on the Board of Trustees of the Business & Human Rights Resource Centre, though this didn’t get quite the profile this year) and bribery corruption (which I encounter as an issue in my role as Chairman of the Advisory Council of the UK Export Credits Guarantee Department). This year, the heads of the Big Four Accounting firms (Deloitte, Ernst & Young, KPMG and PricewaterhouseCoopers) agreed to work with the WEF Partnering Against Corruption Initiative (PACI) to support the global fight against corruption. Together, PACI and the accounting firms will explore the development of a framework for companies to benefit from independent reviews of their anti-bribery programmes. In parallel, the Presidents of the World Bank, the African Development Bank, the Asian Development Bank, the European Bank for Reconstruction and Development and the Executive Director of the international Finance Corporation reaffirmed their support of the PACI and recognized the important role the private sector plays in guiding policy and assisting governments in reducing corruption. They have agreed to jointly pilot an country-specific anti-corruption implementation programme, and a sector-specific structural reform that will promote fair competition and transparency. With China increasingly active in Africa, there was some discussion of what could be done to rein in such countries as they become more influential—and potentially undermine international and regional transparency initiatives. But one of the most upbeat set of conversations I had was with various people from the Indian software company Infosys ( http://www.infosys.com/), which I am hoping to visit in Bangalore in February, around a futures session I am due to do for Shell there. Infosys aims to “win in a flat world,” but do so in ethically acceptable ways. Am very much looking forward to visiting them and some of the social entrepreneurs and NGOs in the area. Whatever Shell concludes in its session on the prospects for technology out to 2030, the 2007 Schwab and World Economic Forum Summits have underscored the fact that new actors are surging into the playing-field - and, in the process, the game we are changing is very likely to change profoundly.
posted by John Elkington @ 7:56 PM
Friday, February 02, 2007
CERES + CALVERT ON S&P 500 CLIMATE RISK DISCLOSURES
Skoll awardee Ceres ( http://www.ceres.org/news/news_item.php?nid=166) and Calvert have released a new report, Climate Risk Disclosure by the S&P 500. This is the first analysis of climate disclosure practices among the 500 largest U.S. companies. The full text of the new report is available for free downloading at www.ceres.org The report concludes that America’s largest companies still are not taking climate change seriously enough. Less than half (47 percent) of the S&P 500 companies responded to a global survey last year by the Carbon Disclosure Project requesting information about their climate risks and strategies, and those that did respond failed to provide much of the information investors are seeking. Nearly a third (30 percent) of the responders, in fact, declined to publicly release their responses, calling them “confidential.” Other key findings from the Ceres/Calvert report include: Poor Greenhouse Gas Emissions Management: 80 percent of the 228 companies that responded to the survey (182 companies) addressed the need to reduce greenhouse gas emissions, but only a quarter (59 companies) disclosed measurable emissions reductions targets and specific time frames for reductions. Physical Impacts Not on Radar Screen: Nearly 75 percent of the responding companies (171 companies) acknowledged bottom-line risks associated with extreme weather events such as hurricanes, fires and floods. However, very few of the companies surveyed link more-extreme weather to climate change and fewer still—only four percent – disclosed strategies for mitigating and adapting to the growing physical impacts from climate change. The Ceres/Calvert analysis was based on S&P 500 company responses to a questionnaire distributed last year by the Carbon Disclosure Project (CDP), to obtain more information relating to corporate management of climate change. CDP is a coordinated effort by 225 global investors with total assets of $31 trillion. The report authors used the Global Framework for Climate Risk Disclosure to analyze the quality of responses. More information from: Chris Fox, Director of Investor Programs, Ceres, 99 Chauncy Street, Boston, MA 02111, USA or on +1 617-247-0700 x15. Email: fox@ceres.org. Ceres website (www.ceres.org). Investor Network on Climate Risk website (www.incr.com).
posted by John Elkington @ 7:18 PM
Thursday, February 01, 2007
DHL YOUNG ENTREPRENEURS FOR SUSTAINABILITY (YES) AWARDS
As one of the international judges (http://www.dhl.com/publish/etc/medialib/g0/downloads/integration.Par.0035.File.tmp/international_council.pdf), I am delighted to see that the DHL Young Entrepreneurs for Sustainability (YES) Awards program has launched today - in 5 pilot countries in Asia. The inaugural Awards in 2007 will cover: Bangladesh, Pakistan, the Philippines, Singapore and Thailand, with plans to expand the programme to other countries in the future. Ads for the awards will likely show on CNN in the week commencing 12th February. The Awards website is live at www.dhl.com/yesawards, where the application kit and further useful information related to the awards can be found. DHL notes that 2007 marks the half-way point in the bid to realise the UN Millennium Development Goals (MDGs), which range from halving extreme poverty to halting the spread of HIV/AIDS and providing universal primary education by 2015 - and comments that this is "a good time to re-energise efforts towards realising the UN MDGs and to celebrate the many successes that have already been achieved."
posted by John Elkington @ 10:17 AM
Friday, January 19, 2007
'SUSTAINABILITY' AND LOST BAGGAGE
Anyone wanting to understand the context within which the more thoughful multinational corporations will eventually view the world of social and environmental entrepreneurship should take a look at the latest issue of Business Week, titled 'Imagine a World.' The article, by Pete Engardio and others, kicks off with a peek over the shoulder of Unilever CEO Patrick Cescau, whose interests focus on such things as water-deprived villages in Africa and the planet's warming climate.
As Business Week notes, "A remarkable number of CEOs have begun to commit themselves to the same kind of sustainability goals Cescau has pinpointed, even in profit-obsessed America. For years, the term 'sustainability' has carried a lot of baggage. Put simply, it's about meeting humanity's needs without harming future generations. It was a favorite cause among economic development experts, human rights activists, and conservationists. But to many U.S. business leaders, sustainability just meant higher costs and smacked of earnest U.N. corporate- responsibility conferences and the utopian idealism of Western Europe. Now, sustainability is 'right at the top of the agendas' of more U.S. CEOs, especially young ones, says McKinsey Global Institute Chairman Lenny Mendonca."Interestingly, SustainAbility has been experiencing more requests to get involved with the work of venture capital groups. We are now represented on the advisory boards of London-based zouk ventures (alongside people with backgrounds with such companies as Ballard Power Systems and GE Wind: see http://www.zouk.com/iagtable.php?pageid=w§ion=4) and Physic Ventures in California, with the latter having attracted a very substantial initial investment from Unilever.
posted by John Elkington @ 12:00 PM
Thursday, January 18, 2007
XIGI PUTS SOCIAL CAPITALISTS ON THE MAP
Social entrepreneurs - a.k.a. social capitalists - are being invited to put themselves "on the map." Xigi is a new "global landscaping tool" for the capital market that invests in social enterprise, microfinance, community development, fair trade and related areas. More details at http://www.xigi.net/. This fascinating venture involves people like Mark Beam, Kevin Jones, Tim Freundlich and Sara Olsen, and has attracted support from the likes of the Lemelson Foundation, RSF, Tangle Capital, Good Capital, Omidyar Network, SVT Group, Collective Intelligence, and Calvert Social Investment Foundation.
posted by John Elkington @ 5:21 PM
Tuesday, January 09, 2007
FAST COMPANY SOCIAL CAPITALIST AWARDS EVENT
Facinating day spent initially at the Reuters Building in Times Square, at the conference convening those who won the latest round of Fast Company Social Capitalist Awards (http://www.fastcompany.com/social/), co-hosted by the Monitor Group and The Schwab Foundation. Alongside Pamela Hartigan of the Schwab Foundation, I led two rounds of a session on 'The Next Frontier: Innovations Shaping the Future of Cross-Sector Partnerships'. One of the ideas that surfaced - raised by Michael Brown of City Year (http://www.cityyear.org/about/) - was the use of prizes, like the X-Prize (http://www.xprize.org/), to drive radical innovation. Must look into some of the things the X Prize Foundation is doing to extend the idea into new areas like energy, medicine, education and the social arena (http://www.xprize.org/xprizes/future_x_prizes.html).In the evening, we all trucked across to The Lighthouse at Chelsea Pier for a reception and dinner. The awards section was compered by Hunter Lovins, who did a brilliant job in her combination of range hat and Arab headdress. Later on, Pamela also formally announced that First Book had won the overall Schwab Foundation Social Entrepreneur of the Year Award (http://www.fastcompany.com/magazine/111/open_socap-partners-firstbook.html).
posted by John Elkington @ 11:50 PM
Saturday, January 06, 2007
A SOCIAL ENTREPRENEUR SPEAKS FROM HER HEART
 To spark meaningful conversations about social entrepreneurship, we have invited (and continue to invite) feedback from our various networks. A recent response provided a welcome reality check for our team. As John heads off to the Fast Company awards in New York this week, we want to recognize that there are many social entrepreneurs who haven't yet made it to the podium and some who never will. Their work, still, remains essential to driving entrepreneurial solutions to sustainability challenges. Below are the words of LAURA PETERSON, FOUNDER, HANDS TO HEARTS INTERNATIONAL . Thanks, Laura for your honest words and continued courage.I think right now there is a ton of hype around social entrepreneurs, there are pros and cons to this, but the reality is that very few SEs will ever get off the ground. I am a therapist, a supervisor and an administrator, now people call me a "social entrepreneur", but I grapple with that. I have described myself as a "business woman trapped inside the body of a humanitarian - and I cannot get out!" I am either exceedingly brilliant or radically stupid. Two years ago I up and quit my secure job (where I was credentialed, respected, appreciated and well paid) to start Hands to Hearts International (HHI), but I have no "street cred" as a social entrepreneur - people question my motives, and I am not known in the field. I do receive respect, mostly because of my courage to just take off and do something radical. I certainly do not consider myself an expert on social entrepreneurship. I am a woman, who got too tired of seeing too many kids, too broken, too early, knowing that it was all preventable. I have been given the chance to try out my radically simple idea of empowering women and nurturing children, all owned and applied within local communities in developing countries. I do not consider myself well trained on how to literally change the world…but maybe I am doing it anyway. In our first 8 months of operations HHI led 12 trainings in 2 countries, for over 17 orphanages, for 205 impoverished women, who are improving the health and care for more than 1,100 orphaned infants. And we did this with peanut-level-funding! The results are apparently beyond anyone's expectations. Children are healthier, have fewer trips to the hospital, need less medicine, gain more weight, and are easier to soothe. The local women caregivers are more responsive to the children, practice better hygiene, take greater pride in their work and for some, HHI has given them their first jobs ever! Meanwhile I am scrapping everyday to glean little bits of funding and still do 1-2 other jobs to be able to afford health insurance and basic living expenses. When people want to see a pic of me at work, I want to send them a pic of me curled up over my laptop, crafting the 13th grant proposal in the last 3 weeks (literally). This is in between keeping in touch with supporters, drafting contracts with partners, trying to graciously coordinate volunteers who generously manage our website and database, create graphics, fundraising events, host events, create budget forecasts, do bookkeeping, etc. I am apparently not developed enough for one fellowship program, while I may be too developed for another. I cannot accurately demonstrate "best practices", as that requires research and that means you can afford research to show how "best" your "practice" is. To apply for major grants I need to pony-up $2k to get a financial audit, which is approximately a third of our current assets! All the while I try to hold the pieces together to actually make our project happen on a day to day basis for the women and children - the entire reason I started this whole thing. My "idea" is actually working, and it is having unimaginable results! But my venture could still die on the vine. No SE is an island, and so many others must join in - the masses, the $$$, the brains, the media, the web-diva, database-dude and the on-ground, real women and children we are trying so damn hard to lift up. We all must rise up, get rowdy, demand more and refuse to remain silent! I do believe that SE's are the next wave, but this all needs to be taken in stride. Some of us will rise, some will fade, and it isn't necessarily due to our brilliance or efficiency. We can offer new slants, new perspectives and ridiculous tenacity to our missions. Some of us may even truly change the world, maybe I already have, but while my model is designed to reach financial sustainability in a few years, currently how I am operating now is not sustainable. I think one of the critical traits of a SE is naivete. While SEs are becoming the "media darlings" the systems are still a far way behind in supporting us.
posted by Maggie Brenneke @ 7:34 PM
Wednesday, December 20, 2006
STRATEGY, INNOVATION & SOCIETY IN HBR
The latest issue of the Harvard Business Review (December 2006) carries two powerful articles under the overall title 'Making a Real Difference.' A highly recommended read as we progress into 2007.The first article, by Michael Porter and Mark Kramer, is entitled Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility. The key message here is that governments, activists and the media often force business into framing corporate social responsibility (CSR) issues in generic ways, rather than as integral to a given company's strategy. That doesn't mean don't do it - just do it better, more strategically. Porter and Kramer conclude that, "When a well-run business applies its vast resources, expertise, and management talent to problems it understands and in which it has a stake, it can have a greater impact on social good than any other institution or philantrhopic organization."The second article, by Clayton Christensen, is entitled Disruptive Innovation for Social Change. "In the social sector," the article's introduction runs, "too much attention is devoted to providing more of the same to narrow populations that are already served. It's time for a fundamentally different approach." Christensen talks of "catalytic innovators" who:- create systemic social change through scaling and replication;
- meet a need that is either overserved (because the existing solution is more complex than many people require) or not served at all;
- offer products and services that are simpler and less costly than existing alternatives and may be perceived as having a lower level of performance, but users consider them good enough;
- generate resources, such as donations, grants, volunteer manpower, or intellectual capital, in ways that are initially unattractive to incumbent competitors;
- are often ignored, disparaged, or even encouraged by existing players for whom the business model is unprofitable or otherwise unattractive and who therefore avoid or retreat from the market segment.
One of the key points Christensen makes is that it's generally a mistake to over-focus on an organization's tax status (i.e. profit versus nonprofit), which he says "is not a useful criterion for identifying catalytic innovators." Taken together, the two articles offer an excellent briefing package for anyone who wants to understand the business case for getting more actively involved in the world of social entrepreneurship.
posted by John Elkington @ 2:23 PM
DANONE + YUNUS = NEW SOCIAL VENTURE FUND
Groupe DANONE (http://www.danone.com/) has announced that it is asking shareholders to create a business development fund in support of social causes and is to set up a specialized Social Responsibility Committee within its Board of Directors. It is now more than 30 years since DANONE first spelled out its dual commitment to business success and social responsibility, reflecting the belief that economic and social progress are inseparably linked. Groupe DANONE now plans to take another step with an innovative social responsibility initiative on a global scale. Today, DANONE argues, hundreds of millions of people suffer from various forms of malnutrition, while the impact of rising populations and economic growth make us increasingly aware of the fragility of natural resources. In response to such challenges, DANONE intends to put its resources and capacity for innovation to work to favor the emergence of solutions that are viable over time in areas such as malnutrition and the preservation of natural resources where it can make a significant contribution.
Groupe DANONE's Board of Directors will be asking shareholders attending the next General Meeting to set up a fund to support businesses that aim to be profitable but make social and societal goals rather than earnings their first priority. This fund will be named danone.communities and will focus investments on business projects with a significant social impact and consistent with Groupe DANONE's mission of bringing health through food to a majority of people. The social impact of projects on local communities will be assessed on the basis of indicators that include their contributions to public health, the reduction of malnutrition, and the alleviation of poverty, with due regard for environmental and social impacts. The fund will be particularly attentive to the social efficiency of capital investments and the scope for international deployment of the projects concerned. The fund's first investment will be to support the development and deployment of the Grameen Danone project in Bangladesh. Looking ahead, the funds aims to be in a position to make a limited number of investments each year in highly innovative ventures in different parts of the world.
The funds set up and supported by Danone is thought to be the first social business fund founded at the initiative of an industrial group - although we know of at least one other major European business heading in the same direction. Interested Groupe DANONE shareholders will be able to reinvest all or part of their dividends in the fund in the form of “social dividends”. Group employees, in particular those in France, will be able to invest part of their profit-sharing entitlements in the fund, which will be included among the options offered for their investments. The fund will also be open to individual investors and institutions sharing an interest in this approach to development.
The fund's Board of Directors will be chaired by Franck Riboud, Chairman and CEO of Groupe DANONE, and Muhammad Yunus, founder of Grameen Bank, has agreed to be its Vice Chairman.
posted by John Elkington @ 12:19 PM
Monday, December 11, 2006
REPLICATION OFFICER
I have long been fascinated by job titles, for what they say about organisations, about roles and responsibilities, and about the individuals who sport them. Today a particularly interesting one walked into our offices, in the form of social entrepreneur Kate Atkinson, 'Replication Officer' for Spruce Carpets http://www.sprucecarpet.org.uk/. I first met her when I did a session with the Forum for the Future almuni some months back. The idea for the business, which involves taking back and reconditioning used carpets before selling them on at very low prices to poor people, came to Kate while she was on a Forum placement in Glasgow. The environmental benefits include diverting large quantities of carpet from landfill. It's interesting, though, that she originally embarked with a strong feeling that the venture would fail, indeed almost hoped that it would so she could move on to other things. But it didn't - even if it clearly remains a struggle. One key problem is that inefficiency, as she puts it, is pretty much built in. Spruce's target customers are vulnerable, may be unable to read and write, and are often ill-at-ease in normal consumer environments. That said, Kate is convinced that the model can usefully spread. The 'Replication' element of her role involves helping regional and local government agencies to work out how to set up similar initiatives in their areas. Intriguingly, she is now pondering a shift to a for-profit enterprise, with similar social benefits but on a much larger scale.
posted by John Elkington @ 8:38 PM
Sunday, December 10, 2006
POOR PEOPLE ARE LIKE BONSAI TREES
"To me poor people are like bonsai trees," said the Grameen Bank's Muhammad Yunus during his acceptance speech for the 2006 Nobel Peace Prize. "When you plant the best seed of the tallest tree in a flower-pot, you get a replica of the tallest tree, only inches tall. There is nothing wrong with the seed you planted, only the soil-base that is too inadequate. Poor people are bonsai people. There is nothing wrong in their seeds. Simply, society never gave them the base to grow on. All it needs to get the poor people out of poverty for us to create an enabling environment for them. Once the poor can unleash their energy and creativity, poverty will disappear very quickly."Read the Nobel Peace Prize Lecture by Dr Yunus at http://nobelprize.org/nobel_prizes/peace/laureates/2006/yunus-lecture-en.html, or watch it at http://nobelprize.org/award_ceremonies/ceremony_oslo/video/2006/index.html.
posted by John Elkington @ 10:08 PM
FAST COMPANY'S SOCIAL CAPITALIST AWARDS
One of the huge frustrations of living in the UK is that supplies of two key US magazines - Fast Company and Wired - are wildly erratic at best, even if you subscribe. Still, at least there are the online versions. And in Fast Company's case, it's great to see the celebration of 43 social entrepreneurs, or 'social capitalists' as the magazine prefers to call them (http://www.fastcompany.com/social/). I served on the methodology panel for the first time this year, and am hoping to make it across to the awards ceremony in New York early in the New Year. The organisations honoured are:
ACCION International (www.accion.org) A Fighting Chance (www.a-fighting-chance.org) Aspire Public Schools (www.aspirepublicschools.org) BELL (Building Educated Leaders for Life) (www.bellnational.org) Calvert Social Investment Foundation (www.calvertfoundation.org) Ceres (www.ceres.org) Citizen Schools (www.citizenschools.org) City Year (www.cityyear.org) Civic Builders (www.civicbuilders.org) Civic Ventures (www.civicventures.org) College Summit (www.collegesummit.org) Corporation for Supportive Housing (www.csh.org) Donors Choose (www.donorschoose.org) EcoLogic Finance (www.ecologicfinance.org) Endeavor Global (www.endeavor.org) First Book (www.firstbook.org) Global Fund for Women (www.globalfundforwomen.org) Grameen Foundation (www.grameenfoundation.org) Hands On Network (www.handsonnetwork.org) Heifer International (www.heifer.org) Housing Partnership Network (www.housingpartnership.net) Jumpstart (www.jstart.org) KickStart (www.kickstart.org) New Community Corp (www.newcommunity.org) New Leaders for New Schools (www.nlns.org) Nonprofit Finance Fund (www.nonprofitfinancefund.org) PATH (www.path.org) PeaceWorks Foundation (www.peaceworks.com) Pioneer Human Services (www.pioneerhumanservices.org) Population Services International (www.psi.org) Raising a Reader (www.raisingareader.org) Rare (www.rareconservation.org) Room to Read (www.roomtoread.org) Rubicon Programs Inc. (www.rubiconprograms.org) Scojo Foundation (www.scojofoundation.org) SEED Foundation (www.seedfoundation.com) Springboard Forward (www.springboardforward.org) Teach for America (www.teachforamerica.org) TransFair USA (www.transfairusa.org) Unitus (www.unitus.com) WITNESS (www.unitus.com) Working Today (www.freelancersunion.org) Year Up (www.yearup.org)
As Cheryl Dahl says in the magazine, "unlike the chaos-theory butterfly, business is not an uncalculating force of nature. It can behave with intention. Indeed, we have left the era in which business leaders were expected to treat their companies as mute, dumb giants, merely swinging pickaxes in a profit quarry. We are waking to the idea that if business inevitably shapes the future, it has a responsibility to choose what that future will be. For guidance in this new realm, business is looking to social entrepreneurs. Not because they excel at that do-gooder thing, but because they have sophisticated, tested theories of change. They know their markets. They understand systems and levers of action as few others do. And, as many clever companies are learning, they can be great partners in endeavors that are good for the world and good for the bottom line."A great summary of why SustainAbility is so interested in this field.
posted by John Elkington @ 1:59 PM
Friday, December 08, 2006
THE FORMULA ZERO FLYING CIRCUS

Eco-Fun Godert van Hardenbroek and Eiso Vaandrager of Formula Zero (http://www.formulazero.nl/index_en.htm) came in to see us today. I first met Godert 5-6 years ago, and for several years used a slide he had developed of a Formula 1 racing car sporting Greenpeace colours - and running on hydrogen. This wasn't even a concept car, but an artist's impression. Things have moved along a bit since, though, and they are now holding hydrogen-fuelled go-kart races. Their idea, illustrated in the diagram above, is to combine ecological technology and fun to help shape a sustainable future.
They say that their goal is "to make sustainability mainstream." In the area of automobility, they are stressing not efficiency and environment-friendliness but sexiness. And, since "people look upwards for their role models," they aim to make the link between hydrogen and aspirational activities, like racing, and aspirational products, like Ferraris. To date, they have invested some 430,000 euros, enough to buy several traditional sports cars. Godert's ambition, he says, is to have a Maserati that runs on hydrogen. Once that happens, he predicts, "the Golfs and Vauxhalls will follow."
 Formula Zero go-kart 
Going to scale, 2006-2015 The diagram above illustrates Formula Zero's plans to steadily scale up the size and power of the vehicles they produce and race. One way they hope to do this is by emulating the Flying Circuses of the between-world-war era, which helped keep flying skills alive, spurred the development of the underlying technologies and built public interest in aviation. Their conceptual sketch of a Formula Zero Race Circus is posted below.
 Formula Zero Race Circus
posted by John Elkington @ 10:21 PM
Tuesday, December 05, 2006
SIERRA GORDA BIOSPHERE RESERVE
Great session today, with Maggie (Brenneke) and I catching up with Laura Pérez-Arce of Mexico's Sierra Gorda Biosphere Reserve (http://www.schwabfound.org/schwabentrepreneurs.htm?schwabid=325; http://www.changemakers.net/studio/00january/pati.cfm). Fascinating to hear how the team around Martha 'Pati' Ruiz Corzo is now playing the combinations in terms of different mixes of economic, social and environmental services provided by the region's ecosystems. But we were particularly interested to hear about the way in which social entrepreneurs from around Latin America are starting to use the Sierra Gorda facilities as a hub for a growing, self-organising regional network of entrepreneurs focusing on social and environmental return on investment. We also explored their relationships with mainstream business, with their biggest partnership to date being with the delightfully named, food-focused Grupo Bimbo (http://www.grupobimbo.com.mx/display.php?section=1&subsection=26). One memorable story, underscoring the often unlikely ways in which altruism can pay off, concerned the car of an employee of Hewlett-Packard breaking down some 10 years ago, late at night. Pati and her husband pulled out all the stops to get the man back on the road, despite the hour. Many years later, he was given responsibility for HP's CD burner market in Mexico, and not only gave a couple of burners to the Sierra Gorda team but also managed to channel 1 percent of sales to the Biosphere Reserve.
posted by John Elkington @ 11:52 PM
Friday, December 01, 2006
Oxfam on the Sofa
Since joining SustainAbility in September, I've come to appreciate the importance of our 'sofa'. More than just a couple of much loved couches in our common space, the sofas at SustainAbility are about creating conversations in a comfortable setting and seeing what emerges. This week, Becky Buell, from Oxfam livened up our sofa. Becky wanted to share lessons about how large organizations innovate and posed an interesting question about social entrepreneurs -- complementary or competitive? As NGOs constantly strive to innovate in fundraising, are they engaged in a losing battle with social entrepreneurs - the new charity industry darlings? What risk does a potential shift away from the tried and true pose to society? Or can these relationships be more complementary? As Sophia Tickell noted (see 29 November posting), can the pursuit of partnerships between NGOs and social entrepreneurs help all ships rise together?
posted by Maggie Brenneke @ 6:50 PM
Wednesday, November 29, 2006
THE SECRET MILLIONAIRE
Hating reality TV as much as I do, I approached the beginning of Channel 4's The Secret Millionaire series this evening not only with with trepidation but with a real sense of guilt. The producers are apparently bracing themselves for charges of 'poverty tourism,' because the dramatic energy of the programmes comes from millionaires going undercover into poor communities and working out who to bankroll in building new ventures. But as the programme tracked the journey of discovery of multi-millionaire Ben Way of The Rainmakers ( http://www.makingrain.com/main/index.html) in a massively disadvantaged community in the London borough of Hackney, my brain had switched on. And by the time Way was handing out cheques to a socially-minded black boxer, a young black designer and a youth club, despite the fact that the TV company involved was also responsible for the Wife Swap series, I had concluded that this was some of the most powerful, moving television I have ever watched.
posted by John Elkington @ 10:37 PM
Calling all ...
So, the website's up and running. It's very exciting. I am hoping that it will give us the chance to explore what's new about the social enterprise space, and importantly, what's not so new. When I was first introduced to a range of deeply impressive social entrepreneurs who were tackling fiendish challenges with the same dogged determination that surrounds a child learning to walk, I was, of course, impressed and awed. But I also felt at home. I have met the same cussed and committed individuals throughout my career and the field of international development is full of them. And through the decades during which that discipline has evolved many lessons have been learnt and successes achieved. I hope very much that some of these, the good, the bad and ugly can be shared so that the wheel is refined and improved, rather than being remade. Sophia
posted by Sophia Tickell @ 9:51 PM
Tuesday, November 28, 2006
LEAPFROGGING: THE BLOG
 Leapfrogging is something most of us did as children, then dropped from the skill-set we discussed with potential employers and working partners in later life. Yet the art - and science - of leapfrogging is going to be central to the process of jumping our unsustainable economies, industries and business models to more sustainable states. Hence the labeling of our blog on our ongoing thinking and work around social entrepreneurship, innovation and scalable solutions. To date, SustainAbility has mainly focused on large, multinational companies and their supply chains. If such organizations change their thinking and priorities, the reasoning goes, the changes can cascade through market relationships to their suppliers. When Wal+Mart switches on, for example, there are huge implications for that company's 61,000 vendors. But experience shows that it can be very tough to get such large incumbents to jump into new opportunity spaces. And that's where our internal Leapfrog Project fits in. In the first year of our Skoll Foundation-funded 3-year program on social innovation and entrepreneurial solutions, a key action item is to work out how to leapfrog our team, our wider network, our clients and - ultimately - our business model into high-leverage relationships with innovators, entrepreneurs and funders who are working towards systemic change. The leapfrogging idea surfaced a few years back, when Pamela Hartigan and I were starting out on our book odyssey, but the idea of using LEAPFROGS as the title went on the spike when Brazilian author Paulo Coelho - a member of the Schwab Foundation board - said the concept didn't translate into Portuguese and other languages. Paulo, a best-selling author, knows what he's talking about, and when we talked to a German colleague, Tell, he couldn't think of the German phrase for leapfrog either. But, even in our globalizing world, this is too powerful a concept to lose because it doesn't translate - or at least not yet. Turn to Wikipedia ( http://en.wikipedia.org/wiki/Leapfrogging) and the concept of leapfrogging is defined as "a theory of development in which developing countries skip inferior, less efficient, more expensive or more polluting technologies and industries and move directly to more advanced ones. A frequent example is countries which move directly from having no telephones to having cellular phones, skipping the stage of landline telephones altogether." We plan to use the term more broadly - referring to the ability of innovators, entrepreneurs, business models, corporations, value chains and even entire economies to make big leaps towards sustainability - or to jump into totally new opportunity spaces. One longer term ambition will be to work out - in each of the six key sectors SustainAbility focuses on - what the most promising leapfrogging ideas and approaches are, how they have worked to date, and what needs to be done to ensure they are replicated and brought to scale. We are very interested to hear from others working on similar approaches, whether in the sustainable development area or in other areas.
posted by John Elkington @ 5:55 PM
IT'S ALIVE!
Today marks the official launch of the Skoll Program website, which I had great pleasure in being a part of. My role - dubbed 'web goddess' by the Skoll Program Team - included that of sourcing imagery, plugging in content and generally orchestrating the interplay between the SustainAbility/Skoll Team and Craig (Ray) of Origin Creative who is behind the design of the website as a whole. Your say....Going forward, our hope is that the Skoll Program website will make a deep impression on all those who set sail in it. Yet, we are very much open to learning new tricks and ways of seeing the issues on our site, and would therefore like to encourage you to send us feedback, comments or suggestions you might have on how we are joining the dots. Please send these to me (Kelly Cruickshank) at cruickshank@sustainability.comLook out for....Periodically, we intend to post statistical data (promise to make it interesting) on how the Skoll Program website is being received across the globe; bringing in those much needed reality checks.
posted by Kelly Cruickshank @ 4:19 PM
Friday, November 24, 2006
THE POWER OF NETWORKS (a shout out to YWSE)
Before landing in London, I was exploring the world of social entrepreneurship in Portland, Oregon (home of the bottle bill, the urban growth boundary and Nike). Through Young Women Social Entrepreneurs, I connected with some amazing individuals committed to making a difference. The group, which originated in San Francisco, is a motley crew and includes strategy professionals, designers, health care workers, bankers and a variety of other women looking to make the leap or who have already leapt. The power of the network, of being inspired by others' willingness to take risks is incredible. A few notable ventures to emerge from YWSE include: Hands to Hearts International, Lucina Company and Souk LLC.
posted by Maggie Brenneke @ 11:20 AM
DESIGN FOR SUSTAINABILITY
I met earlier this week with Bob Adams from Ideo in their splendid office space overlooking the San Francisco bay. Bob and I chatted about Ideo's recent foray into the sustainability arena. He described how design is evolving from design for design's sake, to design for business to an emerging focus on design for sustainability. We talked about 'design thinking', the notion that design is broader than aesthetics or product development; it is a way of thinking, a process for transformative innovation. The resulting creativity (or creative destruction) is what's celebrated about the world of social entrepreneurship. Not surprisingly, the 2007 Skoll World Forum, is tapping the design talent of Ideo to help craft the agenda around 'social innovation and diffusion'.
posted by Maggie Brenneke @ 10:40 AM
Monday, November 20, 2006
CLINGING ON TO ENDEAVOR'S LATEST IMPACT REPORT
One of the most interesting social enterprises we have come across is Endeavor ( http://www.endeavor.org). When Sophia (Tickell), Sam (Lakha) and I dropped in on them in New York last week, co-Founder and CEO Linda Rottenberg gave us copies of their latest impact report, covering the period 2005-2006. Have been holding tightly onto my copy ever since, not least because one of the things SustainAbility has to do is to develop an updated set of impact metrics, something that has become even more urgent since we began to work in the social entrepreneurship space. And if you haven't seen the Endeavor website, it's one of the most engaging we have seen. Take a look at the way they present their own metrics. Stunning.
posted by John Elkington @ 11:18 AM
Sunday, November 19, 2006
HABITAT FOR HUSTLERS?
Habitat for Humanity http://www.habitat.org/ - has been one of the social enterprises that has impressed me most, not least because of the sheer scale of the self-help housing programs it has operated in the US and around the world. But scale can bring new problems, or at least make them more visible. First there was a sex scandal and now BusinessWeek is having a go, its critique in its November 20 edition titled 'Habitat for Hustlers'. The argument is that banks, brokers and mortgage service companies are exploiting those who Habitat for Humanity has helped, many of whom are financially naive. It will be interesting to see how habitat reacts: most social enterprises have yet to develop the sophisticated crisis management processes found in the big business sector. For more, http://www.businessweek.com/magazine/content/06_47/b4010059.htm?chan=search
posted by John Elkington @ 7:06 PM
AT LEAST 55,000 UK SOCIAL ENTERPRISES
While we were all in the US last week, David Miliband (UK Secretary of State, Department for Environment, Food and Rural Affairs) launched the Government's Social Enterprise Action Plan, subtitled 'Scaling new heights'. He noted that there are "at least 55,000 social enterprises in the UK, generating more than £27 billion turnover and contributing more than £8 billion to GDP a year. The Action Plan commits the Government to: - Foster a culture of social enterprise, by building the evidence and raising awareness of the impact of social enterprise, and promoting successful role models to attract new entrants, customers, financiers and support providers.
- Ensure that the right information and advice are available to those running social enterprises so that they can gain access to appropriate support to maximise their business performance and, in turn, their social impact.
- Enable social enterprises to access appropriate finance, by tackling barriers that might prevent investors from supporting social enterprises, or social enterprises from seeking financial support.
- Help social enterprises to work with Government, ensuring that policy makers and commissioners are aware of the role they can play.
For more details, see http://www.theyworkforyou.com/wms/?id=2006-11-16a.1WS.6
posted by John Elkington @ 6:51 PM
DEFINED TOO TIGHT FOR COMFORT?
Are current definitions of social entrepreneurship too restrictive, the modern equivalent of whalebone corsets? A new book suggests that the answer might just be - squeeze it out - yes. The book is 'Research on Social Entrepreneurship: Understanding and Contributing to an Emerging Field', a volume of research papers edited by the Aspen Institute's Rachel Mosher-Williams and published by the Association for Research on Nonprofit Organizations and Voluntary Action (ARNOVA: see http://www.arnova.org/new_volume.php), with funding from the UPS Foundation. In his chapter, Paul Light of New York University offers and dissects a revised definition of a social entrepreneur: "an individual, group, network, organization or alliance of organizations that seeks sustainable, large-scale change through pattern-breaking ideas in what governments, nonprofits, and businesses do to address significant social problems."
posted by John Elkington @ 1:33 PM
ROOM TO READ
 Haven't yet met - but have heard (and now read) - John Wood, founder of Room to Read. So picked up a copy of his book 'Leaving Microsoft to Change the World' (Collins, 2006) when I was racing through Atlanta, after my flight to Detroit was diverted by a major storm that disrupted flights in and out of Dulles airport. As an absolute glutton for books and reading since early childhood, the idea that people would grow up without access to these extraordinary windows into the wider world is literally shocking. But John Wood, winner of a 2004 Skoll Award ( http://www.skollfoundation.org/grantees/socialentrepreneurship/2004.asp), didn't just sit there feeling shocked. While working as Microsoft's director of business development for the Greater China region, Wood decided to switch onto a new set of rails - helping break the cycle of poverty through the lifelong gift of education. In 2000, he founded Room to Read, a nonprofit that promotes literacy in Nepal, India, Sri Lanka, Cambodia, Laos, Vietnam and - soon - in Africa. At the time of writing, Room to Read had donated more than 1.2 million books, established more than 2,600 libraries and 200 schools, and sent 1,700 girls to school on scholarship - touching the lives of an estimated 875,000 children. To date. A must-read book. For more, visit http://www.roomtoread.org. Read the book first, but it's very much in the spirit of the emerging order that Wood gives his email address in the Acknowledgements section of the book: wood@roomtoread.org.
posted by John Elkington @ 1:06 PM
THE GREEN 50
 Trawling through the magazine racks in Dulles airport last week, my eye alighted on the latest issue (November 2006) of Inc. Magazine - which sports the 'Do Good, Get Rich' line on its cover and features 50 leading companies pursuing what it dubs the 'Eco Advantage.' Fascinating. For further info, see http://www.inc.com/magazine/20061101/green50_intro.html
posted by John Elkington @ 12:55 PM
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