2016 global trends: impacts for corporate leadership · 2016 global trends impacts for corporate...

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Global Webinar

2016 Global Trends:Impacts for Corporate Leadership

February 2016

#Trends2016

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Introduction

February 2016

2016 GLOBAL TRENDSImpacts for Corporate Leadership

Mark LeeExecutive Director

SustainAbility is a think tank and strategy consultancy working to inspire transformative business leadership on the sustainability agenda.

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Presenters & Panelists

February 2016


Aiste BrackleyResearch & Trends Manager, SustainAbility

Bron YorkeResearch & Trends Analyst, SustainAbility

Elisa TondaHead of Responsible Industry and Value Chain Unit, UNEP

Ben PackardManaging Director, Corporate Engagement, The Nature Conservancy

Susanne StormerVice President, Chief Sustainability Officer, Novo Nordisk

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Agenda

February 2016


About the Report

Current State of Play

Signals to Watch in 2016

Opportunities for Impact

Discussion & Q&A

01 02 03 04 05

#Trends2016

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About the Report

February 2016

Impacts for Corporate Leadership2016 GLOBAL TRENDS

SustainAbility interviewed over 20 global thought leaders from business, NGOs and academia in the Americas, Europe, Africa, Asia and the Middle East.In the report we look at:

• State of Play in Corporate Sustainability

• Key Themes for 2016

• Opportunities for Corporate Leadership

Global Trends & Opportunities: 2016 & Beyond

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February 2016


““The trajectory is clear now in a way that wasn’t

12 months ago.”

Seb Beloe, WHEB Asset

Management, UK

There is a shared feeling of certainty and consensus about the future direction of climate action.

Global affairs and sustainability agendas are becoming increasingly interconnected and the number of issues that companies should keep on their radar is rapidly multiplying.

More Certainty ... Yet a Sense of Increasing Complexity

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February 2016


““People are becoming increasingly suspicious of

our present form of capitalism, which appears to be ill-equipped

to deal with the issues of our day. We need to reexamine it and start talking about multiple

forms of capitalism.”

Andy Hoffman, University of

Michigan, USA

Growing global instability, environmental pressures and social issues are increasing pressure on companies and the entire capitalist system.

Companies are responding to pressure from consumers and stakeholders by increasingly turning attention to redefining their organizational purpose.

And Growing Pressure on Capitalism

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Rising Global Instability


February 2016


Energy & Climate at the Core

How Far and How Fast for Renewables?

Rise of Subnational Players

Finance is Fundamental

Inequality & SDGs Shaping the Social Agenda

Localized Sustainability Models

Linking Climate Change & Human Health

More Transparency Please

New Focus & Pressure Human Rights

Technological Disruption & Innovation

Getting Smarter on Water

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““Coal is increasingly a dead industry. In

emerging economies less so, but even there,

the writing is on the wall.”

Seb Beloe, WHEB Asset Management

Climate change will remain central to the sustainability agenda; conversation will turn to the practical aspects of the Paris Agreement implementation.

• Scaling of renewable energy• Securing funding for low carbon initiatives• Robust new carbon policies




““So far the climate and SDG conversation has

put the entire burden on national governments to deliver outcomes. But in

2016 we will see a lot being achieved at the level

of cities and regions.”

Stefanos Fotiou, UNEP

Cities and regions will come further into spotlight as key players in sustainable development.

• Set to play a critical role in the implementation of the SDGs and COP21 Paris Agreement

• Important role achieving both social and environmental goals

• Growing number of alliances and collaborations




““South Africa provides a crystal ball which

illustrates to the developed world what happens when inequality gets out of hand.

We’re experiencing the converging impacts of

climate change, migration, xenophobia and poverty. The environmental and social problems we are facing are so entwined.”

Gary Kendall, SustainAbility Council,

South Africa

Inequality and implementation of the SDGs will be the dominant social themes in 2016.

• SDGs offer an opportunity to tackle social and environmental issues in an integrated way

• Worsening global inequality• Emerging nexus of energy and inequality issues




““Readers of reports are likely to be more probing

and skeptical in the aftermath of the

Volkswagen scandal. Storytelling by companies will need to be effective, upfront and balanced.

Readers do not want the extra work of poking

around in an annual report looking for the right data.”

Pat Dwyer, The Purpose Business,

Hong Kong

Companies are facing converging pressures to increase transparency and improve reporting.

• Pressure for better reporting on climate post COP21

• Growing public distrust due to Volkswagen emissions scandal

• Traceability and management tools improving




““We’ll be increasingly looking at water footprint

of products and measuring water use

in a more sophisticated manner, similar to carbon.”

Kitty van der Heijden, World Resources Institute,

Belgium

A growing number of companies are deploying sophisticated data solutions, but the majority are still lagging in water management.

• 53% of water vulnerable companies failing to assess risks (CDP 2015)

• Collaboration will be key to long-term solutions


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Rising Global Instability


February 2016



How Far and How Fast for Renewables?


Finance is Fundamental


Localized Sustainability Models

Linking Climate Change & Human Health


New Focus & Pressure Human Rights

Technological Disruption & Innovation


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Oppportunities for Impact

February 2016


Putting Goals into Action

Advancing the Social Agenda & Implementation of SDGs

Transforming Legacy Industries

Changing Consumption Patterns

Pioneering Technological Solutions

01 02 03 04 05

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February 2016


““Coming to terms with reality and understanding what it will

take to achieve ambitious goals will be a key measure of

corporate leadership. Companies will have to

reconcile bold vision with its implementation, which is likely to be more challenging than

companies have anticipated.”

Alejandro Litovsky, Earth Security Group

Putting Goals into Action01

More companies should strive to be adopting – and achieving – science-based targets and net positive goals.

Moving to 100 % renewable energy will be crucial but climate change adaptation initiatives will be equally important.

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February 2016


““Companies should be aligning their goals with subsets of the

SDGs which reflect their material issues including climate change,

energy, water, education, poverty, and others. The private

sector needs to look at developing economies in a much more positive way and remember that they

present the largest growth market in the world.”

Kitty van der Heijden, World Resources Institute, Belgium

Advancing the Social Agenda & Implementation of SDGs02

The speed at which classic, legacy industries transform will be key to progress.

To date, most innovations have come from start-ups and disruptors.

All industries will have to rise to the challenge.

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February 2016


““We need to need to move on from protecting legacy fossil fuel industries. We need to shift the

focus from mitigating risk to breakthroughs in technologies

and innovation. It’s a much more positive, enabling, upbeat conversation.”

Seb Beloe, WHEB Asset Management

Transforming Legacy Industries03

Companies need to shift focus away from protecting legacy industries and turn to innovation and new ideas.

The finance sector needs to rise to the challenge as reforming the finance system will be crucial, changing money flows and incorporating sustainability indicators into lending, insurance practices, etc.

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February 2016


““The millennial generation has a different set of expectations, in

terms of lifestyle aspirations and their relationship with brands.

My hope is that millennials don't stop caring about social and environmental issues as they get older. If that’s the case, I think we’ll see consumer

product markets shift towards lower carbon intensity and

greater sustainability.”

Neil Golightly, Shell Oil Company, USA

Changing Consumption Patterns 04

Rethinking waste from an input perspective in terms of the entire value chain.

Cutting down on food waste is a hugely important opportunity to cut down on water use and emissions.

Are we likely to see a generational inflection point with millennials?

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February 2016


““The future will be shaped by technology – investments in

technology, security issues and technological breakthroughs.”

Julia Harrison, FTI Consulting, Belgium

Pioneering Technological Solutions05

The role of technology in shaping sustainable development agenda will be paramount.

Cost-effective renewable technologies, energy efficiency measures, IoT, Big Data will be key.

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Discussion & Q&A

February 2016


Aiste BrackleyResearch & Trends Manager, SustainAbility

Bron YorkeResearch & Trends Analyst, SustainAbility

Elisa TondaHead of Responsible Industry and Value Chain Unit, UNEP

Ben PackardManaging Director, Corporate Engagement, The Nature Conservancy

Susanne StormerVice President, Chief Sustainability Officer, Novo Nordisk

Mark LeeExecutive Director, SustainAbility

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Thank You

February 2016


For more information about our bespoke trends service and how your company can benefit from it, please contact

Aiste Brackley: [email protected]

2016 global trends: impacts for corporate leadership · 2016 global trends impacts for corporate...

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