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How do we make the change? From
sustainability incrementalism to
transformation…

Toby Webb, Founder, Ethical Corporation
 and Stakeholder Intelligence, September 2012

Toby.webb@stakeholderintel.com / tobywebb.blogspot.com
What I’m going to talk about today

 What is needed for change from
  business-as-usual on
  sustainability? How do we shift from
  “incrementalism” to “transformation”?

 How can policy makers and corporate
  leaders make change happen?
What’s needed to change the current model
Government must combine “backbone” and
increased capacity

 Responsibility deals: Being a catalyst
 Keeping business, NGOs & others in the room
 Brokering deals that last, and deliver
 Confidence to stand up to selfish lobbying
 Develop national plans and goals: And stick to
  them! (build business and social confidence)
Financial regulation MUST play a role
Investors must be made to describe, in quantitative terms, the
environmental & social characteristics of investment portfolios. E.G.


 The carbon footprint of their funds


 The numbers of deaths and injuries in the
   companies in which they are invested

 The number of companies in which they invest
   that have a significant proportion (e.g. more than
   40%) of women on their boards
Investors must disclose, or be made to:
 The number of companies that they invest in that have
    committed one or more serious violations of human rights
    in the past three years

 State whether they have engaged with the companies and
    other entities in which they have invested and, if yes, the
    outcomes that have been achieved from this engagement

 State whether they have engaged with policy makers on
    environmental and social issues and, if yes, the outcomes
    that have been achieved through this engagement
   Source: Dr Rory Sullivan
What’s needed to change the current model
Companies must be much more vocal about the
"HOW" and start to think about change
OUTSIDE their industry as well as inside. E.G.

 Energy generation and efficiency
 Transportation
 Sustainability incentives for business
 NGO partnerships for innovation and solutions
 How they can help build innovative SMEs
What’s needed to change the current model
Companies must stop focusing on changing
consumer choices (impossible) and start 'choice
editing' - taking away unsustainable products

 Companies must stop promoting good things and
  stop selling bad things: By choice
 Business must understand consumers don’t like
  eco-labels and just want to trust the brand
 Consumer NGOs and institutions must reward
  progress by the leading companies
How should Government, business, academic and NGOs change?

 Governments must INVEST in understanding
   sustainability internally

 NGOs must be very solutions focused, less ideological and
   think at a scale which they have not considered so far

 Academics need to reform their research incentives: Stop
   producing research that no-one can read: Go open source

 Universities must have targets for business collaboration
   and strategic plans to change the world beyond educating
   students, by using their students!
Conclusions
 We must think radically
 We must regulate where disclosure will not do
  harm
 We must scale up our resources and focus on
  solutions
 We must not accept incrementalism as acceptable:
 We must focus on systems transformation


 We must say: Bring the change…

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Business and Sustainability, What Needs to Change Sept 2012

  • 1. How do we make the change? From sustainability incrementalism to transformation… Toby Webb, Founder, Ethical Corporation and Stakeholder Intelligence, September 2012 Toby.webb@stakeholderintel.com / tobywebb.blogspot.com
  • 2. What I’m going to talk about today  What is needed for change from business-as-usual on sustainability? How do we shift from “incrementalism” to “transformation”?  How can policy makers and corporate leaders make change happen?
  • 3. What’s needed to change the current model Government must combine “backbone” and increased capacity  Responsibility deals: Being a catalyst  Keeping business, NGOs & others in the room  Brokering deals that last, and deliver  Confidence to stand up to selfish lobbying  Develop national plans and goals: And stick to them! (build business and social confidence)
  • 4. Financial regulation MUST play a role Investors must be made to describe, in quantitative terms, the environmental & social characteristics of investment portfolios. E.G.  The carbon footprint of their funds  The numbers of deaths and injuries in the companies in which they are invested  The number of companies in which they invest that have a significant proportion (e.g. more than 40%) of women on their boards
  • 5. Investors must disclose, or be made to:  The number of companies that they invest in that have committed one or more serious violations of human rights in the past three years  State whether they have engaged with the companies and other entities in which they have invested and, if yes, the outcomes that have been achieved from this engagement  State whether they have engaged with policy makers on environmental and social issues and, if yes, the outcomes that have been achieved through this engagement  Source: Dr Rory Sullivan
  • 6. What’s needed to change the current model Companies must be much more vocal about the "HOW" and start to think about change OUTSIDE their industry as well as inside. E.G.  Energy generation and efficiency  Transportation  Sustainability incentives for business  NGO partnerships for innovation and solutions  How they can help build innovative SMEs
  • 7.
  • 8. What’s needed to change the current model Companies must stop focusing on changing consumer choices (impossible) and start 'choice editing' - taking away unsustainable products  Companies must stop promoting good things and stop selling bad things: By choice  Business must understand consumers don’t like eco-labels and just want to trust the brand  Consumer NGOs and institutions must reward progress by the leading companies
  • 9. How should Government, business, academic and NGOs change?  Governments must INVEST in understanding sustainability internally  NGOs must be very solutions focused, less ideological and think at a scale which they have not considered so far  Academics need to reform their research incentives: Stop producing research that no-one can read: Go open source  Universities must have targets for business collaboration and strategic plans to change the world beyond educating students, by using their students!
  • 10. Conclusions  We must think radically  We must regulate where disclosure will not do harm  We must scale up our resources and focus on solutions  We must not accept incrementalism as acceptable:  We must focus on systems transformation  We must say: Bring the change…