May 2011

the world according to Corporate Culture

Preferred future presentation page 2

world population increases

Source:WEF Global Risks 2011

Preferred future presentation page 3

global risks

Source:WEF Global Risks 2011

Preferred future presentation page 4

future trends

demand for water will increase by 15% by 2030,

leading to unreliable supplies of fresh water

population increases to 9 billion – increasingly

healthy and living longer

increasing global economic development grows consumption;

especially in China, India and Brazil

economic volatility and uncertainty continue

businesses increasingly hold the levers of change (today 43 of the world’s 100 largest economic entities are companies)

demand for electricity could double by 2050; there is a risk of an energy gap equivalent to the total energy market in 2000 (*1)

by 2050 we will be using 2.3 planet’s worth of resources

in the next 40 years we may need to

produce as much food as in all of

history up to now (*2)

Preferred future presentation page 5

the now CEO: belief system

Preferred future presentation page 6

the new CEO: belief system

Preferred future presentation page 7

there are always two futures

where we are now

the probablefuture

our preferredfuture

Preferred future presentation page 8

alternative industry responses: Shell scenarios

Source:Shell Energy Scenarios to 2050, Signals & Signposts, 2011

Preferred future presentation page 9

the need for sustainable business models

“ the need for responsible business engagement in the big issues of our time has never been more urgent… the current financial crisis is the result of short term and unsustainable business models… our experience is that companies that have put sustainability issues at the heart of their business strategy offer some valuable lessons for those negatively impacted by the crisis.”Samuel A. DiPiazza, Jr, CEO, PricewaterhouseCoopersThe World Business Council for Sustainable Development’s annual meeting of business leaders – Nov 2008

Preferred future presentation page 10

an inflection point

“we are at an inflection pointunlike any other in history, and I believe Cisco has an opportunity to help countries, communities and citizens achieve their social and economic goals.”John Chambers, Chairman and CEO, CiscoCisco CSR Report 2009

Preferred future presentation page 11

Anglian Water region

it is the driest region in the UK

28% of the region is below sea level

as a low-lying region there is a high use of energy to pump water around the region

demand for water is expected to rise in a water constrained world

population is expected to rise –around 1m homes to be built in the next 25 years

Preferred future presentation page 12

a new model for a new world

Preferred future presentation page 13

a manifesto for a new world

Preferred future presentation page 14

with audacious goals, commitments and measures

Preferred future presentation page 15

summary of good practice

old CR a focus on

impact today a focus on

managing risk cost communicating what we do

as a business semi-detached

from strategy

sustainable business a focus on short, medium

and long-term business success a focus on risk

and opportunity value engaging and building relationships our actions, plus, we make it easy

for customers and employees to act integrated

with strategy

Preferred future presentation page 16

Sustainable Business

strongfoundations Manage the business

to meet our responsibilities and live our values

transformationalprojects Identify the small number of

transformational projects to achieve real change

long-term view of sustainable business

Identifyour preferred

future

Com

municate and engage w

ith stakeholders

Preferred future presentation page 17

sustainable edge: the 15 factors that influence long term success

the process: define fit for

purpose criteria for your company

identify where you are and where you want to be

develop strategies for change

Preferred future presentation page 18

old mindset

third sectorvoluntary initiatives for public goodpublic sectorpublic initiatives for public goodprivate sectorprivate initiatives for private good

Preferred future presentation page 19

charities governments companies each of us others

newmodels

oursustainable

world

Preferred future presentation page 20

disruptive principles

Preferred future presentation page 21

the biggest impact companies can have today

customers

employees

Preferred future presentation page 22

the old world was two dimensional…

Preferred future presentation page 23

… the truth lies in the 3D model of behavioural change

Preferred future presentation page 24

with WRAP motivating over 5m consumers to take positive actions to manage their recycling and food waste

Preferred future presentation page 26

our business

Preferred future presentation page 27

Preferred future presentation page 28

social marketing network

Preferred future presentation page 29

social trends

greater spotlighton companies

growth of active shareholder stewardship

increased focus on shared value (Michael Porter/Mark Kramer)

increasing connectedness

increase in open innovation and co-creation

increased focus on localism

increasing consumer power

increase in collaborative consumption trends

Preferred future presentation page 30

Preferred future presentation page 31

there comes a time for game-changing, for thinking big and for being bold; and that time is…

Preferred future presentation page 32

Preferred future presentation page 33

for the love of

peoplefor the love of

people

Preferred future presentation page 34

summary of sustainable business

“ we are going to solvetough customer and global problems and make moneydoing it.”Jeff Immelt, Chairman and CEO, The General Electric Company

Preferred future presentation page 35

appendix

Preferred future presentation page 36

disruptive principlesThe Great RevaluingMarket prices should reflect real social and environmental costs and benefits

The Great RedistributionResources, time and responsibility should be redistributed to local people who own local problems

The Great RebalancingMarkets should collaborate with governments and citizens to co-produce products and services to improve lives for public good

The Great LocalisationDecisions should be taken as locally as possible and good practice scaled up

The Great ReskillingThe new world needs new skills to improve autonomy and collaboration with an understanding of the wider social context

The Great InterdependenceWe should influence other individuals, companies, governments and countries to adopt these principles because we are all mutually dependant

The Great Economic IrrigationFinancial systems should reduce the barriers to this new approach to sustainable success

Preferred future presentation page 37

implications increased potential for conflict increased national and international

regulation and legislation increased customer power increased localism growth in sustainable investment

to encourage stewardship increase in sustainable consumption

and collaborative consumption a move away from ownership increase in cradle to cradle

product responsibility increase in cross-sector collaborative

action to solve major social issues increase in co-creation

forces for change: summary

forces population increase re-balancing of economies migration and diversity increased urbanisation increase in middle classes increase in inequality older population the deficit in funding older age a resource-constrained world an increase in governance failures an increase in climate change events food scarcity water scarcity technological innovation increased connectedness continuing economic volatility increased threat from on-line security