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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
2016 GLOBAL TRENDSImpacts for Corporate Leadership
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
2016 GLOBAL TRENDSImpacts for Corporate Leadership
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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Current State of Play
February 2016
2016 GLOBAL TRENDSImpacts for Corporate Leadership
““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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Current State of Play
February 2016
2016 GLOBAL TRENDSImpacts for Corporate Leadership
““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
Signals to Watch in 2016
February 2016
2016 GLOBAL TRENDSImpacts for Corporate Leadership
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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Rising Global Instability
Signals to Watch in 2016
February 2016
2016 GLOBAL TRENDSImpacts for Corporate Leadership
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
sustainability.comFebruary 2016
2016 GLOBAL TRENDSImpacts for Corporate Leadership
““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
Energy & Climate at the Core
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2016 GLOBAL TRENDSImpacts for Corporate Leadership
““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
Rise of Subnational Players
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2016 GLOBAL TRENDSImpacts for Corporate Leadership
““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
Inequality & SDGs Shaping the Social Agenda
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2016 GLOBAL TRENDSImpacts for Corporate Leadership
““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
More Transparency Please
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2016 GLOBAL TRENDSImpacts for Corporate Leadership
““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
Getting Smarter on Water
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Rising Global Instability
Signals to Watch in 2016
February 2016
2016 GLOBAL TRENDSImpacts for Corporate Leadership
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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Oppportunities for Impact
February 2016
Impacts for Corporate Leadership2016 GLOBAL TRENDS
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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Opportunities for Impact
February 2016
2016 GLOBAL TRENDSImpacts for Corporate Leadership
““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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Opportunities for Impact
February 2016
2016 GLOBAL TRENDSImpacts for Corporate Leadership
““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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Opportunities for Impact
February 2016
2016 GLOBAL TRENDSImpacts for Corporate Leadership
““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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Opportunities for Impact
February 2016
2016 GLOBAL TRENDSImpacts for Corporate Leadership
““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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Opportunities for Impact
February 2016
2016 GLOBAL TRENDSImpacts for Corporate Leadership
““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
2016 GLOBAL TRENDSImpacts for Corporate Leadership
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
Impacts for Corporate Leadership2016 GLOBAL TRENDS
For more information about our bespoke trends service and how your company can benefit from it, please contact
Aiste Brackley: [email protected]