Professional Documents
Culture Documents
OF SCIENCE
How does it mix with
sustainability, business strategy
and consumer emotion?
DIRECTIONS 15
THE RISE
OF SCIENCE
CONTENTS
SCIENCE AND
DOUGHNUTS
IN THE
LABORATORY
DIMENSION 1:
SCIENCE-BASED
GOALS
DAVID CROFT
A MEASURED
APPROACH
MATTHEW SWIBEL
ITS NOT JUST
SCIENCE
ON OUR RADAR
MARK W. McELROY
SCIENCE + ETHICS
= CONTEXT
JOHN KORNERUP BANG
APPLYING
SCIENCE
2
4
6
8
10
12
14
DIMENSION 2:
SCIENCE-BASED
FRAMEWORKS
GUIDO SCHMIDT-TRAUB
ORCHESTRATED
ACTION
KATE RAWORTH
CAN DOUGHNUTS
SAVE US?
DR. JAKE REYNOLDS
REWIRING
THE ECONOMY
PETER BAKKER
THEORY INTO
PRACTICE
DR. GEOFF KENDALL
BACK TO
THE FUTURE
CHRISTOPHER DAVIS
KATE LEVINE
BEAUTY IS
ACADEMIC
16
DIMENSION 3: 36
STAKEHOLDER
ENGAGEMENT
ANDY HOWARD
DISSECTING DATA 38
ANNIE LANCASTER
THE RE40
ENLIGHTENMENT
24
CREATING
SOLUTIONS?
30
34
42
28
18
20
JIM PEACOCK
Director,
Consultancy &
Communications
NINA PICKUP
Creative Director
ANNIE LANCASTER
Senior Consultant
KRISTINA JOSS
Senior
Sustainability
Consultant
CAROLINE CARSON
Sustainability
Consultant
OLIVIA STANDISH
Researcher &
Project Lead
AMY KELLY
Studio Manager
RICHARD WILSON
Design Director
AMBER HADLEY
Designer
GARY McCALL
Print Manager
LOUISE MOYNA
Production
Team Lead
MARK LEVER
Senior Artworker
NIGEL SALTER
Founder & CEO
Salterbaxter
SCIENCE AND
DOUGHNUTS
IS THIS
SUSTAINABILITYS
NEXT WAVE?
Science was at the heart of sustainability from the start.
But now theres a renewed interest in how it can direct
thinking and lead to better, more focused action. Thats
good, says Nigel Salter, but many challenges lie ahead.
IN THE
LABORATORY
David Croft
David Croft is Sustainable Development Director
for Diageo. Previously with Waitrose, Kraft Foods,
Cadbury, and the Co-operative Group, Davids
roles included leading technical, marketing and
sustainability functions in quality, safety, brand
marketing, sustainability, and sustainable agriculture.
Peter Bakker
CEO of the World
Peter Bakker is the President and
lopment.
Deve
ble
Business Council for Sustaina
Global Citizen
on
Clint
the
of
ient
recip
Mr. Bakker is the
ership
Lead
bility
Award (2009); the SAM Sustaina
Against
dor
assa
Amb
an
been
has
and
Award (2010);
e 2011.
sinc
e
ramm
Prog
Hunger for the UN World Food
ds.
erlan
Neth
Child
War
of
rman
Chai
He is also the
Andy Howard
s Research,
Andy Howard is the founder of Dida
on long-term
sed
focu
firm
arch
rese
an independent
led the GS SUSTAIN
equity investing. Andy previously
in London,
research team at Goldman Sachs
McKinsey,
advised financial institutions with
ess.
Witn
al
Glob
NGO
the
and worked with
Christopher Davis
rate Social
the Director of Corpo
Christopher Davis is
dy Shop
Bo
e
Th
for
ns
aig
Camp
Responsibility and
2004 to work
ned the business in
International. He joi
d in 2010 was
an
,
ick
dd
Ro
ita
er An
with company found
aders Award
Le
s
es
Nations Busin
awarded the United
rk.
wo
in recognition for his
Kate Levine
Kate Levine is the Directo
r of Commitment and
Corporate Communicatio
ns for The Body Shop
International. Kates bac
kground is in corporate
communications, having
worked for many years
in consultancies, most rec
ently as a Partner at
Pagefield in London.
Guido Schmidt-Traub
cutive Director of the UN
Guido Schmidt-Traub is Exe
tions Network (SDSN).
Solu
t
men
Sustainable Develop
eneral Ban Ki-moon,
Launched by UN Secretary-G
and technical expertise
c
ntifi
the SDSN mobilises scie
, and the private sector
from academia, civil society
elopment.
dev
able
in support of sustain
Matthew Swibel
Matthew Swibel is Lockheed Martins Director of
Corporate Sustainability, leading the sustainability
program, reporting and stakeholder engagement.
During his tenure Lockheed Martin has been named a
sector leader in environmental, social and governance
performance. Previously, Matt was an award-winning
business journalist, primarily with Forbes.
Kate Raworth
Kate Raworth is a Senior Associate of the Cambridge
Institute for Sustainability Leadership, focused on
exploring the economic mindset needed to address
the 21st centurys social and ecological challenges.
She is the creator of the doughnut of planetar y and
social boundaries.
5
DIMENSION 1:
THINGS TO NOTE:
The initial drive for science-based
targets came out of businesses
setting carbon targets in line with
requirements to keep global
temperature increases to below
2 degrees Celsius.
T
he adoption of science-based carbon
targets has been accelerated by several
partnerships, including a joint initiative
by CDP, the UN Global Compact, the
World Resources Institute, and WWF
called Science Based Targets (SBT)
that aims to increase corporate
ambition on climate action by
changing the conversation
around decarbonisation.
SCIENCE-BASED
GOALS
6
Science-based targets
have a vital role to play
in creating much better
sustainability metrics,
but they have their
limitations too. The key
is to measure the things
that really add value
and to use the right
language, argues
Diageos David Croft.
CAROLINE CARSON
Sustainability Consultant
Salterbaxter
A MEASURED
APPROACH
DAVID CROFT
Sustainable Development Director
Diageo
1 Leading producers of alcoholic beverages have made a collective commitment to reduce harmful drinking across five key areas underage drinking, marketing
codes of practice, consumer information and responsible product innovation, drinking and driving, and enlisting retailer support in reducing harmful drinking.
(http://www.producerscommitments.org/)
MATTHEW SWIBEL
Director of Corporate Sustainability
Lockheed Martin
KRISTINA JOSS
Senior Sustainability Consultant
Salterbaxter
10
11
SCIENCE
ETHICS
CONTEXT
Science-Based Goals/Metrics
These are grounded in scientific
or factual knowledge of the worlds
vital resources and how human
activities can and/or should affect
them. But they do not fully reflect
a fair and proportionate share
of the burdens to abide by them.
12
Context-Based Goals/Metrics
These are science- and moralitybased goals or metrics that fully
reflect fair and organisationspecific allocations of the burdens
to maintain or produce vital
resources at levels required to
ensure stakeholder wellbeing.
Context-based environmental
metrics developed by the Center
for Sustainable Organizations
and the MultiCapital Scorecard
developed by Thomas & McElroy
make it possible to set goals
and measure performance in
fair and organisation-specific
ways. Companies using such
tools include Biogen Idec,
Ben & Jerrys, New Chapter,
Agri-Mark, EMC, Autodesk,
BT and Lockheed Martin.
ETHICS-BASED METRICS
Some sustainability standards are not
science-based at all and are perhaps
better described as purely normative
or ethics-based. They express duties
or obligations organisations have to act
with like fairness, justice, integrity and
respect. Respecting racial and gender
equality come rushing to mind here.
Such purely normative thresholds,
however, are no less germane to
sustainability performance and must
be taken into account.
Context-based metrics, as indicated,
always bring allocations to the table
and are otherwise science- and/or
ethics-based. Only context-based
measures, therefore, make it possible
to set goals for, and assess performance
against, organisation-specific
sustainability standards of performance.
Neither science- nor ethics-based
measures do this on their own.
Of course, there are other metrics that
are not science-, ethics- or contextbased at all and which focus instead on,
say, the beneficial effects or good deeds
of a firm, such as levels of employment
or philanthropic contributions.
These should not be confused with
measures of sustainability performance.
Acknowledgement:
An earlier version of this article first appeared on the Sustainable Brands website on 25 May 2015 (www.sustainablebrands.com),
and has been reprinted and updated here with permission.
13
APPLY NG
SC ENCE
THE QUEST FOR BUSINESS RELEVANCE
14
15
THINGS TO NOTE:
Based on social studies and scientific
research like Limits to Growth,
these frameworks give businesses
scientifically validated vision, models
and metrics to help guide their strategy.
And there are a number out there: from
Planetary Boundaries and One Planet
Thinking to The Doughnut model and
the Sustainable Development Goals.
16
17
GUIDO SCHMIDT-TRAUB
Executive Director
UN Sustainable Development Solutions Network
@gschmidttraub
ORCHESTRATED
ACTION
There may be a lot of them and some may seem a bit
lofty, but the 17 Sustainable Development Goals and
their 169 targets are no pipe dream, and are using
science to set targets that nations and business can
use as a guiding star. They are a remarkable action
plan for business, says Guido Schmidt-Traub.
In September 2015 the largest ever
gathering of heads of state adopted
17 Sustainable Development Goals
(SDGs) and 169 targets that will apply
to all countries. They are the outcome
of an unprecedented global consultation
process involving governments,
civil society, and business.
18
PROOF POSITIVE
The power of global goals has already
been demonstrated by the Millennium
Development Goals (MDGs). These
have supported an unprecedented
mobilisation of business and civil society,
particularly in the fight against child
mortality and infectious diseases.
The SDGs can serve the same role and be
useful for businesses in three main ways.
First, they provide a framework for
developing immediate and long-term
business strategies to support major
transformations needed towards
low-carbon energy, sustainable use
of water and materials, sustainable
agriculture, healthcare and education
for all, and cities that are productive,
resilient, and liveable.
Each of these transformations will require
new technologies and new business
models. Yet, the transformations are also
highly complex and require long-term
objectives with clear and predictable
policy frameworks that make sure
business has a level playing field.
Widely shared SDGs will force the same
discussions about energy policies,
healthcare strategies, the use of modern
technology in education, innovation for
low-carbon transport, water-efficient
agriculture and the circular economy,
in country after country. Countries will
explore how the goals can be achieved
over the long term and how business can
be empowered to provide the necessary
financing, the technologies, and the
service delivery.
Take the work of the Deep Decarbonization
Pathway Project promoted by SDSN and
The Institute for Sustainable Development
and International Relations (IDDRI),
for example. The project has mobilised
teams from 16 of the major greenhouse
gas-emitting countries to develop longterm national pathways to ensure that
global temperatures do not rise beyond
the internationally agreed limit of 2C.
19
OLIVIA STANDISH
Researcher
Salterbaxter
KATE RAWORTH
Senior Associate
Cambridge Institute for
Sustainability Leadership
DN OUG
SAVEU
NH UTS
S? CA
Q
Our aim in the 21st century must be
to live between social and planetary
boundaries, something we are currently
failing to do. The Doughnut model is a
powerful tool for helping non-scientists
understand the science of earth systems
and of social needs. Here Kate Raworth
explains how her concept can help
companies think differently about
growth and play their part in moving
humanity into this safe and just space.
21
HUMANITYS FUNDAMENTAL
CHALLENGE IS TO MOVE INTO
THE SPACE BETWEEN THE
SOCIAL FOUNDATION AND THE
ENVIRONMENTAL CEILING.
resilience
th
e
VE
jobs
PM
SI
voice
T
energy
AN
DS
I
U ST
AIN ABL E ECONO M
atmosp
heri
load c aero
ing
so
l
E
CD
ution
poll
ion
let
ep
d
e
on
oz
social
equity
EN
la
nd
education
gender
equality
VE
LO
l
ica
em
ch
biodiversity
loss
income
and
ogen
nitr rus cycles
ho
osp
ph
water
ocea
na
cid
i
fi
ca
tio
n
22
e
us
ty
ni
food
health
CL
se
fre
sh
wa
te
r
ONMENTAL CE
ILIN
ENVIR
G
ge
an
ch
IN
climate change
23
24
WE NEED A FUNDAMENTAL
REWIRING OF OUR ECONOMY TO
TILT THE OPERATING CONDITIONS
FOR COMPANIES IN FAVOUR OF
SUSTAINABLE DEVELOPMENT.
Rewiring the Economy our recently
launched ten-year, ten-point plan
is aimed at laying down these new
economic foundations. The plan
pinpoints ten tasks, which if addressed
collaboratively by governments, business
and finance institutions would match
up economic progress with the UNs
sustainable development goals (SDGs).
BOLD AMBITIONS
REPORTING SHORTFALLS
BUSINESS-AS-USUAL OPERATION
IS CONTRIBUTING TO
ENVIRONMENTAL DEGRADATION
RATHER THAN OFFERING
SOLUTIONS.
Tackling this problem head on, Rewiring
the Economy encourages the key players
governments, business and financial
institutions to work together to
create conditions where sustainable
business models thrive because they
are commercially successful. Such
conditions would see poor performers
lose market share and ultimately
disappear, replaced by firms that
generate social and environmental value
as a function of their core business.
25
26
RE-ENGINEERING BUSINESS
PRIORITIES
Business can and must play a central
role in this process of economic rewiring.
Take the work being done through the
Cambridge Natural Capital Leaders
Platform, for example. This brings
together companies who are placing a
value on their impacts and dependency
on natural capital, and who can,
therefore, make better decisions,
identify new opportunities and
contribute solutions to natural capital
loss and ecosystem degradation.
CISLs new project, Action Linking Growth
with Nature (ALIGN), is taking this
work further by convening companies
actually investing in natural capital and
asking: can we produce private returns
alongside things of real public value such
as improved livelihoods, conservation
and resource protection?
1http://www.worldenergyoutlook.org/resources/energysubsidies/
2https://www.imf.org/external/pubs/ft/wp/2015/wp15105.pdf
27
PETER BAKKER
President and CEO
World Business Council
for Sustainable Development
28
REDEFINING VALUE
A defining part of the WBCSDs work
is building frameworks that help
sustainable companies become
recognised and rewarded for their
integrated performance, and showing
others how they can gain this competitive
edge. Our Redefining Value Programme
aims to achieve this vision by improving
the effectiveness of non-financial
reporting so that it progressively reflects
the true value of a company by disclosing
true profits and true costs.
Additionally, in 2016, two consortia
managed by the WBCSD and the
International Union for Conservation of
Nature will deliver the Natural Capital
Protocol, a harmonised measurement
and valuation framework for natural
capital. We are also developing a Social
Capital Protocol to measure and manage
social impact.
HELPING BUSINESSES TO REALISE
THE SDGs
We are developing the SDG Compass for
Business in partnership with the United
Nations Global Compact (UNGC) and
the Global Reporting Initiative (GRI).
The SDG Compass will help businesses
understand the methodologies and tools
available to match up their strategy with
the SDGs. We now need business to get
engaged and bring forward its positive
influence on society through innovation,
investment and labour. The SDGs
constitute the framework conditions
for successful businesses of the future.
29
BACK
TO
02
Sc
Science
01
Su
Sustainability
04
Fu
Future-Fit
THE
Almost 50 years ago we put a man on
the moon. But here are a few questions
for you about that extraordinary
achievement:
What was the first, necessary
precondition for making it happen?
Was it our ability to develop sophisticated
technologies? Was it our willingness
to embrace a seemingly impossible
vision? Was it our commitment to invest
whatever it took to get the job done?
All these factors were, of course, critical.
03
Bu
Business
30
FUTURE
WEVE HAD NO CLARITY WHEN
IT COMES TO WHAT HAS
OFTEN BEEN CALLED THIS
GENERATIONS MOON-SHOT:
THE TRANSITION TO A
SUSTAINABLE ECONOMY.
Unfortunately, weve had no such clarity
when it comes to what has often been
called this generations moon-shot:
the transition to a sustainable economy.
It is now widely accepted that we need
to rapidly and radically change the
way we do business if we are to avoid
the worst effects of climate change,
resource scarcity, environmental
degradation and population growth.
And we need every business to play
its part in this transition, because our
economy as a whole can only become
sustainable if every company operating
within it is sustainable too.
CURRENT LIMITATIONS
31
01
03
Bu
Su
Business
Sustainability
02
Sc
Science
32
04
Fu
Future-Fit
1This is based on John Ehrenfelds definition of a sustainable society, more details of which can be found
at johnehrenfeld.com
BUILDING
SCIENCE-BASED
CREATING THE FUTURE-FIT BUSINESS
BENCHMARK INVOLVED THREE STEPS
Step one began with identifying a
set of system conditions that describe
how a truly sustainable society must
operate. Thankfully, more than
25 years of academic research have
already been devoted to this task2.
We translated the results of that
effort into a set of Future-Fit business
principles that can be applied at
the level of an individual company.
There are seven of these principles.
Heres an example: A Future-Fit
business ensures no harmful
substance escapes into the
environment.
Step two involved translating
the principles into a clear set of
environmental and social performance
thresholds or goals. To develop these
Future-Fit goals we cross-referenced
all of a hypothetical companys critical
relationships with its customers,
communities, suppliers, employees,
owners, and the environment
against each business principle,
to identify the full range of actions
that might cause breaches to occur.
For example, by looking at the
intersection of customers with
the principle mentioned above,
we deduced that a Future-Fit
companys products emit no harmful
substances when used as intended.
BENCHMARK
Step three after a round of public
consultation to challenge and refine
our work, weve arrived at a set of
21 Future-Fit goals. Collectively,
these goals draw the line in the
sand the business world has been
lacking. But to identify their biggest
performance gaps and thus
prioritize what matters most
companies also need to be able
to tell how far away they are from
reaching each goal. So we created
a concise, credible and comparable
set of KPIs that enable progress
toward each goal to be measured
and thus managed. This work is due
for completion in December 2015.
33
CHRISTOPHER DAVIS
Director of Corporate Social
Responsibility and Campaigns
The Body Shop International
KATE LEVINE
Director of Commitment and
Corporate Communications
The Body Shop International
The Body Shop is known for being one of the first businesses to shape
ethical consumerism, led from the heart. But as the sustainability debate
has matured, there is a need to change tack: to embrace the latest scientific
thinking and collaborate with academia to continue to drive the agenda.
Christopher Davis and Kate Levine talk to Annie Lancaster about
how scientific thinking is helping The Body Shop do just that.
Annie Lancaster: As your sustainability
strategy has developed, what role has
science played in that development?
Christopher Davis: Historically, the
company has been led from its heart;
building sustainability strategy around
the philosophies of Anita [Roddick] that
business can be a real driver for change,
so I think its fair to say that science
hasnt been at the centre of our strategy
in distant past. However, we are now
embracing what we see as an exciting
new development science moving
more to the fore.
34
ANNIE LANCASTER
Senior Consultant
Salterbaxter
ITS UP TO ALL OF US
TO EMBRACE, INTERPRET,
AND APPLY THE SCIENCE
THE BEST WE CAN.
35
DIMENSION 3:
STAKEHOLDER
ENGAGEMENT
There may be convincing arguments for adopting a
science-based approach, and targets and frameworks
in place to help you achieve it, but how can this be
turned into compelling storytelling for either investors
or end consumers?
KEY QUESTIONS:
Whether its in raising investment or
in increasing sales, does science
have a role to play in bringing
stakeholders along on the journey?
What can organisations do to
successfully communicate the science
behind their decision-making to
consumers, and should they even try?
36
37
ANDY HOWARD
Founder
Didas Research
DOUBLE-EDGED SWORD
However, having more data is a doubleedged sword.
Distilling performance into formulae and
metrics may bring an objective lens to
an otherwise woolly subject and be more
scalable than relying on conversations
with silver-tongued investor relations
executives. But data-driven metrics are
only as useful as the logic on which they
are based. Data analysis is a tool and not,
in itself, an answer.
Unfortunately, there has been too little
attention paid to the logic underpinning
ESG analysis. A perception of ESG
performance persists. It is a convenient
illusion that sidesteps the need to think
about what it means, how it should
be measured and the investment
value of the results.
While a few investors venture into the
primary data that companies report,
most rely on ESG ratings from firms like
MSCI, Sustainalytics or EIRIS to provide
bite-sized answers, which are then
used to screen stocks for investment
and engagement.
That emphasis on single-number ratings
is evident in Bloombergs statement that,
of all the detailed raw data it collects
and publishes through its terminals,
the single most used ESG data point
by far is its ESG Disclosure rating
a score which provides, at best,
a crude proxy for performance.
DATA-DRIVEN METRICS
ARE ONLY AS USEFUL AS THE
LOGIC ON WHICH THEY ARE
BASED. DATA ANALYSIS
IS A TOOL, NOT AN ANSWER.
ING
DATA
39
ANNIE LANCASTER
Senior Consultant
Salterbaxter
THE RE-ENLIGHTENMENT
Science and emotion are often believed to be
entirely separate, non-complementary entities.
Therefore a common fear expressed over the
preceding pages is that without an emotional hook,
communicating the science behind your strategies
and activities can leave audiences cold. But is this
the case? Annie Lancaster argues that, when it
comes to science, consumers are now more
receptive than ever before.
40
41
42
43
ABOUT US:
We work where business strategy,
sustainability and creative communications
meet, creating strategies and stories for
some of the worlds leading businesses
and brands. Our aim is to help business
perform better, communicate better
and deliver better long-term outcomes.
We call this Ideas for Better Business.
Maersk Group
Premier League
PVH Corp.
Richemont
Sky
Sustainable Apparel Coalition
The Body Shop International
Thomson Reuters
Trafigura
Unilever
Viacom
Contact us:
Samuel Griffin-Flynn
sgriffin-flynn@salterbaxter.com
Tel +44(0)20 7229 5720
salterbaxter.com
@salterbaxterMSL
44
Salterbaxter MSLGROUP
The Dome, Level 4 Whiteleys Centre
151 Queensway
London W2 4YN
Tel +44 (0)20 7229 5720
ABOUT DIRECTIONS:
Directions, now in its fifteenth year,
is widely viewed as the leading
annual publication on trends in
sustainability and communications.
Salterbaxter also produces
supplements and events on
key topics throughout the year.
2001
Trends in CSR
reporting
2002
Trends in CSR
reporting
2003
Trends in CSR
reporting
2004
Trends in CSR
reporting
2005
Best in show of this
years crop
2006
Is CR in your blood?
2007
Cutting through the
noise of the climate
change debate
2008
Sustainability
gets tough
2009
Mapping the
landscape of
European CR
2010
The Innovation
Edition
2011
Opportunity in
the new age of
uncertainty
2012
Profits from
purpose
2013
Authentic?
2014
Getting under
the surface
2015
The rise of science