Transforming business for tomorrow’s world

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Sukhdev presents in his new book "Corporation 2020" a number of strategic challenges for sustainable business and recognizes the need for a fundamental transformation of the economy.

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<ul><li> 1. www.corp2020.com @corp2020 Stockholm, 28th January 2013 Can Todays Corporation Deliver Tomorrows Economy? Pavan Sukhdev Founder &amp; Author, Corporation 2020 Study Leader, TEEB, &amp; UNEP Goodwill Ambassador </li> <li> 2. www.corp2020.com @corp2020 20111989 A Green Economy is defined as one that results in improved human well-being and social equity, whilst significantly reducing environmental risks and ecological scarcities. Source: Towards a Green Economy, UNEP, 2011 </li> <li> 3. www.corp2020.com @corp2020 Source : T-21 Model, Green Economy Report, 2% of GDP invested in Greening vs 2% more in BAU </li> <li> 4. www.corp2020.com @corp2020Is Green Economy possible without greening the Private Sector? (eg: USA) U.S. Gross Value Added, By Sector 7.1% 5.5% Private Business 12.5% Households 74.9% Nonprofit institutions serving households Government Total = GDP (US$14,526.5 billion) U.S. Nonfarm Employees 16.7% Private 83.3% Government </li> <li> 5. www.corp2020.com @corp2020 Green Economy is the right economic vehicle to achieve Sustainable Development www.unep.org/greeneconomy Corporation 2020 is the right economic agent to achieve a Green Economy www.corp2020.com @corp2020 </li> <li> 6. www.corp2020.com @corp2020 Corporation 1920 Four Defining Behaviours Pursuit of Size Active Lobbying Unethical Advertising Unlimited Leverage. </li> <li> 7. www.corp2020.com @corp2020 Pursuit of Size </li> <li> 8. www.corp2020.com @corp2020 Pursuit of Size </li> <li> 9. www.corp2020.com @corp2020 Leading to explosive growth in trade </li> <li> 10. www.corp2020.com @corp2020 Corporation 1920 Four Defining Behaviours Pursuit of Size Active Lobbying Unethical Advertising Unlimited LeverageResulting in Negative Externalities.. </li> <li> 11. www.corp2020.com @corp2020 Why do we need change? Negative externalities of top 3,000 companies estimated at US$2.15 trillion per annum Source: Trucost for UNPRI, 2010. </li> <li> 12. www.corp2020.com @corp2020 Why do we need change? We are approaching or have exceeded several planetary boundaries </li> <li> 13. www.corp2020.com @corp2020 What will drive change? Macro Issue Micro Driver Micro Solution Culture of Ethics &amp; Consumerism Excessive Demand Accountability in Fuelled by Advertising Marketing/ Advtg LimitUnderpriced Supply Unlimited leverage Leverage/capital adequacy/etc. Underpriced Resource Taxes resourcesResource Depletion replace corporate (Low royalties / taxes perverse subsidies) Measure &amp; DisclosePublic Capital Losses Externalized costs Externalities </li> <li> 14. www.corp2020.com @corp2020 Limiting Leverage Tools for limiting leverage: Capital adequacy ratios for TBTF corporations Consortium banking (info sharing between banks) Segregate lending/clearing institutions from investment/ insurance (re-visit Glass-Steagall?) Limit tax-deductibility of interest beyond caps Constrain leverage from M&amp;As Re-align performance bonus systems </li> <li> 15. www.corp2020.com @corp2020 http://sharequotes.us/robson-walton-biography.html Rob Walton Chairman, Walmart </li> <li> 16. See Interview with Rob Walton onwww.corp2020.com @corp2020 www.corp2020.com Limiting Leverage to see why Wal-mart went public </li> <li> 17. www.corp2020.com @corp2020 Accountable Advertising Two principles Treat all consumers equally, irrespective of market Disclose advertising policies &amp; practices, eg: Annual Accountable Advertising Report Four strategies Disclose life span of product on packaging and in ads Disclose countries of origin Disclose the footprint of the product on its packaging (GHG emissions, freshwater, etc) Recommend how to dispose of product </li> <li> 18. www.corp2020.com @corp2020 Jochen Zeitz Executive Chairman, Puma </li> <li> 19. www.corp2020.com @corp2020 Accountable Advertising : PUMA </li> <li> 20. See Interview with Jochen Zeitz onwww.corp2020.com www.corp2020.com @corp2020 to see why PUMA disclosed its Externalities </li> <li> 21. www.corp2020.com @corp2020Disclosing Externalities : PUMA PUMA Press Release, November2011 </li> <li> 22. www.corp2020.com TEEB for Business @corp2020 Coalition: Measuring, Valuing, Disclosing Externalities WBCSD TEEB for GRI Business IIRC, SASB, &amp; CEF Coalition Accountancy CDP, WDP &amp; Network Regulators Quantifying Standardizing &amp; Disclosing Usage, Discovering Valuing Impacts in Depend-encies &amp; Impacts One Report ImpactsEmissions /tCOe Economic Costs of Framework forFreshwater / CuM Emissions, Integrated ReportingForests LUC / Ha Freshwater of All ExternalitiesPollution / Use, Deforestatio incl Social &amp; HumanWaste / n, Capital.. Pollution, Waste (Value Chain ImpactsCradle to Gate) </li> <li> 23. www.corp2020.com TEEB for Business @corp2020 Coalition: Measuring, Valuing, Disclosing Externalities TEEB for Business Coalition Incorporated as a company limited by guarantee* Incorporated in Singapore Board Advisory Group Jochen Zeitz (Puma) Michael Izza (ICAEW) (Company) Juan Costa-Climent (E&amp;Y) Board Herman Mulder (GRI) Peter Bakker (WBCSD) Fernando Rodes (Havas) Pavan Sukhdev (GIST Advisory) (Chair)Founder Member Reps - Observer Reps organisations Ordinary Member Reps Co-opted board members:Members of the company for whom legal ownership is ordinary members of the 1. Pavan Sukhdev, Study Leaderknown as Founder Members - complicated but who have been Coalition elect five board TEEBand therefore its legal instrumental partners are offered members for a three year period 2. Gerard Ee (Chair) (Member ofowners, all have permanent a permanent board seat as Parliament, Singapore)board seats: observers: 3. Sanjeev Sanyal (Senior Economist1. ICAEW CBD Deutsche Bank Singapore)2. WBCSD UNEP3. GRI World Bank/IFC4. WWF Accounting for5. CI Sustainability6. IUCN UK Government (Defra) * A company limited by guarantee is a structure that means7. IIRC Others? European there are no shares in the company; its members are guarantors8. Global Initiatives Commission; Singapore rather than shareholders. There is therefore no need for share Economic Development transfers as members join or leave the company. Board; other donor govts </li> <li> 24. www.corp2020.com @corp2020 What will define a Corporation 2020? Four Characteristics Goal Alignment with Society Capital Factory Institute Community </li> <li> 25. www.corp2020.com @corp2020 Corporation as Institute : Infosys World-class Training for 30,000 p.a. </li> <li> 26. www.corp2020.com @corp2020 Infosys Externalities Disclosure Financial Statements Y/e March 2012 Source: Annual Report, 2011-12 </li> <li> 27. www.corp2020.com @corp2020 Corporation as Community : Natura Greater Economic Security for Women http://totallybeautyaddict.fr/mon-jolieapero-chez-natura-brasil/ Source: http://www.managementexchange.com/story/innovation-in-well-being </li> <li> 28. www.corp2020.com @corp2020 In Summary : Reforms for Corporation 2020 to become the DNA of Business Accountable Advertising : Making advertising responsible &amp; accountable via norms &amp; standards Limiting Leverage : Introducing rules &amp; limits to govern financial leverage Resource Taxation : Replacing Corporation Tax (profits) with Taxes on Resource Use &amp; Extraction Disclosing Externalities : Measuring &amp; disclosing all major corporate externalities (+ve &amp; -ve)From : www.corp2020.com Source: Why Corporation 2020?, Island Press, 2012 </li> <li> 29. www.corp2020.com @corp2020 Planks Disclosing Resource Accountable LimitedStages Externalities Taxation Advertising LeverageResearch &amp;Ideation GRI, IIRCOutreach GRI, IIRC,&amp; Advocacy WBCSD, ? ? ? AFS, B4EInstitutionalChampionship ? ? ?Implement-ation ? ? ?(Funding &amp; UK (Defra)Proj. Mngmt.) SING (EDB) </li> <li> 30. www.corp2020.com @corp2020 Thank You ! www.corp2020.com Pavan Sukhdev Founder, Corporation 2020&amp; UNEP Goodwill Ambassador </li> </ul>