Sustainability Partnerships

DRIVING SUSTAINABLE GROWTH THROUGH PARTNERSHIPS

SOFUS MIDTGAARD MANAGING PARTNER, LEADERLAB

!SOFUS@LEADERLAB.COM

PARTNERSHIPS !

1. INTRODUCTION, THREE CASES & SOME GENERAL LEARNINGS

2. IDEA GENERATION AND DISCUSSION AT THE TABLES

3. WRAP-UP: FIVE RECOMMENDATIONS TO CEOS, BOARDS AND OTHER STAKEHOLDERS

”THE ISSUES WE FACE ARE SO BIG AND THE TARGETS ARE SO CHALLENGING THAT WE CANNOT DO IT ALONE. WHEN YOU LOOK AT ANY ISSUE, SUCH AS FOOD OR WATER SCARCITY, IT IS VERY CLEAR THAT NO INDIVIDUAL INSTITUTION, GOVERNMENT OR COMPANY CAN PROVIDE THE SOLUTION.“ !

PAUL POLMAN, CEO, UNILEVER

COMPETITIVE INNOVATION

SYSTEMS INNOVATION

COLLABORATIVE INNOVATION

LEADERLAB.COM

PARTNERSHIPS ARE NOT A SILVER BULLET!

AROUND 50% ARE NOT SUCCESSFUL

TYPES OF PARTNERSHIPS !

1. COMPANY/NGO COLLABORATION (BRANDING)- COKE+WWF

2. COMPANY/COMPANY COLLABORATION - DYECOO - NIKE + IKEA

3. SINGLE INDUSTRY COLLABORATION - Sustainable Apparel Coalition (SAC) or Better Cotton Initiative (BCI)

4. CROSS INDUSTRY COLLABORATION - Forrest Stewardship Council (FSC)

5. MULTI STAKEHOLDER PARTNERSHIPS - LAUNCH + LAUNCH Nordic

! Source: NBS 2014

THREE CASES

1. DYECOO STRATEGIC COLLABORATION & CO-INVESTMENT BETWEEN NIKE, IKEA, ADIDAS TO SCALE WATERLESS DYEING TECHNOLOGY

2. BCI: BETTER COTTON INITIATIVE INDUSTRY COLLABORATION TO SCALE THE USE OF MORE SOCIAL AND ENVIRONMENTALLY FRIENDLY COTTON.

COTTON IS ARGUABLY THE WORLD’S MOST IMPORTANT NATURAL FIBRE

250M PEOPLE WORLD WIDE DEPEND ON COTTON PRODUCTION

300,000 FARMERS IN 8 COUNTRIES RECEIVED TRAINING

!

810,000 METRIC TONNES OF BETTER COTTON WERE LICENSED (3% OF GLOBAL PRODUCTION)

!

313 PARTNERS, AMONG OTHERS LEVI’S, IKEA - REPRESENTING ABOUT 10% OF GLOBAL COTTON

CONSUMPTION. !

5 MILLION FARMERS AND 30% OF GLOBAL PRODUCTION BY 2020

3. PTCPLANT PET TECHNOLOGY COLLABORATIVE PTC: STRATEGIC COLLABORATION BETWEEN COKE, HEINZ, P&G, NIKE AND FORD TO SCALE THE USE OF PLANT BASED PET

Coke is the largest bio-plastic end user in the world and is focused on having all new PET plastic it uses contain PlantBottle technology by

2020. Since its initial launch in 2009, more than 20 billion PlantBottle

packages have been distributed in 31 countries resulting in more than

445,000 barrels of oil saved.

LEARNINGS

1. PARTNER WITH PURPOSE Partnerships should make you able to achieve something you can’t achieve on your own. Partnerships should never be the parking slot for difficult CSR-agendas better solved alone.

2. GET BEYOND THE USUAL SUSPECTS !

Unconventional partners will bring new perspectives and spur innovation. Watch out for the usual suspects.

3. PASSION IS KEY !

It is important to have a core of totally committed, knowledgeable people who would die in a ditch for what the partnership is trying to achieve.

4. MAKE SURE EVERYBODY WINS !

To shape a valuable partnership everybody has to win. Make sure that the partnership goals are linked directly to strategic priorities/goals of all partners.

5. SET SIMPLE CREDIBLE GOALS Many stakeholders often result in cluttered goals and reporting. Set simple, credible goals that you can communicate and will make you stand out.

6. CONTRIBUTE WITH MORE THAN MONEY No partnership can run on money alone. Only by leaning in you will harvest the real benefits of a partnership.

7. DEDICATE GREAT PEOPLE !

If a partnerships is strategic, staff it like it like it is strategic - with great people! If not don’t make the partnership!

8. GET PROFESSIONAL HELP !

50% of all partnerships are unsuccessful. It is important to have a structured, neutral facilitator who can keep people moving along at a brutal pace.

9. BE FLEXIBLE IN DEFINING SUCCES !

Even a partnership with few and clear goal will produce unexpected value for partners. Be open for surprises and calibrate your measures of success.

10. SHARE THE LOVE !

You can achieve amazing things together if you are able to step back and let other people step into the limelight.

SUSTAINABILITY IS MOVING UP ON THE CEO AGENDA

! Source: McKinsey Global Survey 2014

WHAT TO LOOK OUT FOR WHEN PARTNERING WITH ANOTHER COMPANY?

! Source: McKinsey 2014

! Source: NBS 2014

THANK YOU!

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