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Unfinished BusinessPerspectives from the Sustainable Development Frontier
evidence and ideas. applied
The Regeneration Project UnfinishedBusiness–PerspectivesfromSustainableDevelopmentPioneers 2
Foreword 3
Acknowledgements 4
Overview 5
Introduction 6
Urgency&Crisis 9
Roles,Responsibilities&Leadership 12
Disruption 14
Barriers&Levers 16
TheRoadAhead 20
What’sNext 21
AboutUs 22
Sponsors 23
Contents
The Regeneration Project UnfinishedBusiness–PerspectivesfromSustainableDevelopmentPioneers 3
Foreword
Thisyearmarksthe25thanniversaryofbothGlobeScanandSustainAbility.Italsomarkslargermilestonesinthesustainabilityfield:itisthe25thanniversaryofthereleaseoftheBrundtlandReportOur Common Future,andtwodecadeshavepassedsincetheRioEarthSummitelevatedsustainabledevelopmentontheglobalagenda.
Anniversariesinviteustoreflectandassesspastprogress,andwewouldberemissnottolookbackatthisjuncture.Giventheurgencywefeel,however,wearemostdeterminedtoconsiderhowtoscaleandaccelerateprogressonsustainabledevelop-mentintheyearsahead.Fromthiscircumstance,The Regeneration Projectemerged.
BeginningwithaseriesofvideointerviewswithluminarysustainabledevelopmentPioneers,The Regeneration ProjectalsowillincludetwoglobalpublicopinionandtwoexpertstakeholdersurveysbeforeandafterRio+20.Thesurveyswillconsiderleadershipchallengesandthepotentialforsocietaltransformation.GlobeScanandSustainAbilitywillpresentinitialprojectfindingsatRio+20inJune,andthenconductglobalsalonsincitiesworldwideinthesecondhalfof2012.Atthesalons,wewillbegintodeveloparoadmaptohelpdeliversustainabilitywithinthenextgeneration,focusingespeciallyontheroleoftheprivatesector.Asweprogress,wewillpublishaseriesofwhitepapersandotheroutputssharingourlearning.
Thisisaboldundertaking,andoneweapproachhumbly.Werecognizeandappreciatethemyriadeffortsofothersworkingonthisagenda,andwewillseektobuildonotherinitiativesandtoengageasmanypartnersaspossible.ThosealreadysupportingThe Regeneration Projectarelistedonpage23ofthisreport;wewouldliketoacknowledgeespeciallySCJohnson,ourpresentingsponsor,fortheenormousfaiththeyhaveshownbyofferingtheirsupportinthismanner.
Morepartnerswillbeneededandmadewelcomeastheyearprogresses.ThesuccessofThe Regeneration ProjectwillstemnotonlyfromtheintelligencegatheredfromthePioneerinterviewsandsurveys,butalsothroughthecreationofacollaborativeandengagingplatformforcollectiveaction.
Whetheryoucometoplayaformalrole,wehopetodeliveraprojectyoumightadmireandfinduseful.Wewouldwelcomeyourfeedbackatanytime.
The Regeneration Project UnfinishedBusiness–PerspectivesfromSustainableDevelopmentPioneers 4
Acknowledgements
OurwarmthanksgotoallwhohavecontributedtothelaunchofThe Regeneration Project, including:
• ThesustainabledevelopmentPioneerswhomweinterviewedinvari-ouslocationsaroundtheworldin2011andwhogenerouslysharedtheirexperienceandinsightswithus.TheirwisdomformsThe Regeneration Project’sfoundations.Pioneercontributionsarewoventhroughoutthisreport,andtheyareacknowledgedindividuallyinthispaper.
• OurPresentingSponsor,SCJohnson,withoutwhichthisprojectwouldnotbepossible.
• OurSponsor,DuPont,forsupportoftheprojectintheyearahead.
• OurMediaSponsor,Guardian Sustainable Business,whichwilllaunchandhosttheRay Anderson Memorial Interviews,ourseriesofvideointerviewswithaforementionedsustainabledevelopmentPioneers,lead-inguptotheRio+20EarthSummit.WelookforwardtopartneringwithGuardian Sustainable Businessonaglobaleventonsustainabledevelop-mentinLondonthisJune.
• Thefollowingsupportingorganizations:GLOBE,TheInternationalCouncilonMiningandMetals(ICMM),NationalGeographic,NetImpact,ReportComunicação,Starbucks,SustainOurAfrica,SustainableLifeMedia,UnitedNationsEnvironmentalProgram(UNEP),theWorldBankandtheWorldBusinessCouncilforSustainableDevelopment(WBCSD).Wearegratefulfortheirsupportandfortheirthoughtleadershipinthefieldofsustainabledevelopment.
• And,ourcolleaguesatSustainAbilityandGlobeScan,particularlyFrancesBuckingham,ChrisGuenther,AaronJaffe,GeoffKendall,LiviaMartini,LakshmiSivagnanasundaram,PatrinWatanatadaandEricWhanforinvaluablesupportwithproduction,researchandeditorialguidance.Finally,wethankJonathanFreemanandChrisWashforthereportandwebsitedesign.
LindsayClinton,LeadAuthorKyleWhitakerFebruary2012
The Regeneration Project UnfinishedBusiness–PerspectivesfromSustainableDevelopmentPioneers 5
Overview
The Regeneration Project,acollaborativeandmulti-facetedinitiativebyGlobeScanandSustainAbility,aimstoprovidearoadmapforachievingsustainabledevelopmentwithinthenextgeneration,focusinginparticularonwaystheprivatesectorcanimprovesustainabilitystrategy,increasecredibilityanddeliverresultsatgreaterspeedandscale.
Mindfulthatwearenotthefirstortheonlyactorstoproffersuchasustainabledevelopmentvision,wehumblyaspiretodevelopthisroadmapbycollaboratingwithawidevarietyofstakeholdersandpartnersfromdifferentsectorswhocanstrengthentheoutcome.Weembarkonthisprojectnotknowingalltheanswers.ThebeautyandchallengeofThe Regeneration Projectliesinitsdesign:areflectiveprocessofprogressiveandparticipatoryproblem-solvingwhoseoutcomeswillbesubstantialandvaluable,butwhichwillrevealthemselvesgradually.
Thisprojectoffersourowncompanies,bothintheir25thanniversaryyear,theopportunitytoreflectonthepastandlookcriticallyatthefuture.Importantly,anotherkeyevent,theconveningoftheJune2012Rio+20Summit,groundsourworkinalargerglobaldialogueaboutthefutureofsustainabledevelopment.
Thiswhitepaperisthefirstinaseriesofinitiatives(SeeFigure1)fromThe Regeneration Projectthatwillbelaunchedintheyearahead.
Figure 1: TheRegenerationProject,2012Initiatives
FirstWhitePaper(PioneerPerspectives) March
Ray Anderson Memorial InterviewsLaunchinPartnershipwithGuardian Sustainable Business
March
Launchofwww.theregenerationproject.com March
PublicOpinionResearchonProgresstoDate May
ExpertStakeholderSurveyonExpectationsforRio+20 May
SecondWhitePaper June
Rio+20SideEventsinRiodeJaneiro June
SalonsinCitiesaroundtheWorld July–October
PublicOpinionResearchonChallengestoSocietalTransformationpostRio+20 September–October
ExpertStakeholderSurveyontheRoleofBusinesstoAchieveSustainability September–October
FinalWhitePaperandSustainabilityRoadmap October–December
The Regeneration Project UnfinishedBusiness–PerspectivesfromSustainableDevelopmentPioneers 6
Signs of stress are apparent in many of the world’s
largest economies. Theeurozonefaceswhatmaybe
anexistentialcrisis,whileincomeinequalityintheUS
iscausingadivisioninopportunitiesandthreatening
economic growth. Imbalancesof power inChina are
fuelingpopulardiscontent,anddespiteIndia’sincred-
iblegrowth,hundredsofmillionsofitspeoplearestill
miredinpoverty,asarebillionsworldwide.
Recentsocialprotestsindicatedisillusionmentwith
prevailingpoliticalandeconomicsystems,reflecting
growingdistrust in leadersofall stripes.Thecollec-
tive ire—suicides among Chinese workers, hunger
strikes by Indians, protests across the Arab world
andsouthernEurope, fuel strikes inNigeria, educa-
tionreformmarchesinChile,renewedenvironmental
activismacrossNorthAmerica,andthe“Occupy”pro-
testsaroundtheworld—islinkedtoquestionsabout
sustainabilityandsurvivability.Activistsrallyagainst
business,governmentandthe“1%”becausetheysee
andfeelinequity.
Humanityislivingbeyonditsnaturalmeans.Weare
indebttofuturegenerationsandtotheEarthitself.We
inhabitaseven-billionpersonplanetandareonthe
way tonineor tenbillionbymid-century.Theworld
is losingspeciesata rate that is100 to1,000 times
faster thanthenaturalextinctionrate.1Weareverg-
ingonpeakmetals,peakphosphorous,peaksoiland
peakoil.Whiletechnologicaladvancementsandnew
discoveriesareupendingviewsonpeakoil,theassets
couldstillbestrandedduetoanotherformof‘peak’—
that of greenhouse gas (GHG) emissions. Last year,
theCO2levelsintheatmospherereachedanall-time
highof392partspermillion(ppm),upfrom356in
1992,2 both of which are above the limit cited by
scientists because it will almost certainly push us
beyond the risky two-degree Celsius temperature
increasethreshold.
The current economic uncertainty, societal discon-
tentandenvironmentalinflectionpointscoincidewith
two especially significant milestones in sustainable
development.Theyear2012marksthe20thanniversary
oftheUnitedNations’EarthSummitinRiodeJaneiro
andthe25thanniversaryoftheBrundtlandReport,Our
Common Future.Itistimely,therefore,toask:
Introduction
1 International Union for the Conservation of Nature, 20042National Oceanic and Atmospheric Administration Earth System Research Laboratory (NOAA-ESRL)
How far have we come since the concept of sustainable development was elevated to the global
policy agenda?
Where have we excelled and where have we fallen short?
Most importantly, how can we regain momentum and plot a hopeful path forward?
The Regeneration Project UnfinishedBusiness–PerspectivesfromSustainableDevelopmentPioneers 7
The Regeneration Projectaimstodriveforwardan
actionresearchinitiativethatwillgiverisetoaroad-
mapfortheachievementofsustainabledevelopment
withinthenextgeneration.Itfocusesparticularlyon
the role of the private sector. This white paper, the
firstinaseriesofthreetobereleasedinthecourse
ofThe Regeneration Project,isinspiredbyandleans
heavily on the perspectives of twenty sustainable
developmentPioneers(SeeFigure2,page8)whom
weinterviewedlastyearforaninitiativenowknown
astheRay Anderson Memorial Interviews.3
Inour interviews,wetalkedtothePioneersabout
regeneration:howtoachieveitandwhetherthereis
still time. Through our conversations—on farms in
India,onthesidelinesoftheClintonGlobalInitiative
and in offices across Europe—we heard about the
sizeablehurdlesaswellastheincrementalandmore
fundamental wins of the sustainable development
journeyoverthelasttwodecades.
FromourinteractionswiththePioneers,The Regen-
eration Project emerged. In this firstwhite paper of
theproject,welookatwhathashappenedsincethe
1992EarthSummit andhighlight theneed forbusi-
nesstohelpchallengetheorthodoxiesinourcurrent
economicmodel.Thenweraisequestionsaboutthe
futureincluding:
Introduction
Who should take the lead in the sustainable development journey?
What responsibility does society shoulder in the road ahead?
How can we balance the needs of the future with our current priorities?
3 Ray Anderson, Founder and Chairman of Interface, who passed away in 2011, was recognized by many as a sustainability pioneer and maverick. Our Pioneer videos are launched in his memory, with permission from his family.
The Regeneration Project UnfinishedBusiness–PerspectivesfromSustainableDevelopmentPioneers 8
Introduction
Figure 2: Global Sustainable Development Pioneers
ThePioneersweinterviewedfortheRay Anderson Memorial Interviewsarenotablefortheirlongtermcommit-
menttosustainabledevelopmentandrepresentacross-sectionofbusiness,governmentandcivilsociety.*
Lester Brown – Founder & President, Earth Policy Institute
Madame Gro Harlem Brundtland – Former Prime Minister of Norway; Chair, Brundtland Commission
Nitin Desai – United Nations Secretary-General for Rio+10; Senior Economic Advisor, Brundtland Commission
John Elkington – Founder, SustainAbility and Volans
Bill Ford – Executive Chairman, Ford Motor Company
Kris Gopalakrishnan – Co-Chair of Infosys Technologies; Chair, Business Action for Sustainable Development (BASD) 2012
Yolanda Kakabadse – President, World Wildlife Fund (WWF) International; former President, International Union for the Conservation of Nature (IUCN)
Matthew Kiernan – Former Executive Director, World Business Council for Sustainable Development (WBCSD); Founder, Innovest Strategic Value Advisors
Israel Klabin – Founder, Brazilian Foundation for Sustainable Development
Jim MacNeill – Secretary-General of the Brundtland Commission and lead author of the Brundtland Report
Doug Miller – Founder, Executive Chairman & CEO, GlobeScan
Rajendra Pachauri – Chair, Intergovernmental Panel on Climate Change (IPCC); Director-General, The Energy and Resources Institute (TERI)
Jonathon Porritt – Founder, Forum for the Future
Vandana Shiva – Founder, Navdanya
Achim Steiner – Executive Director, United Nations Environment Program (UNEP)
Bjorn Stigson – President, World Business Council for Sustainable Development (WBCSD)
Maurice Strong – United Nations Secretary-General for 1992 Rio Earth Summit
Sir Mark Moody-Stuart – Former Chairman, Anglo American; former Chairman Royal Dutch Shell; Chair, BASD 2002
David Suzuki – Founder, David Suzuki Foundation; Host ‘The Nature of Things’
Sha Zukang – United Nations Secretary-General for Rio+20
* Our Pioneers list is not exhaustive. We deeply respect and acknowledge the work that many others have done along the long sustainable development journey in the years leading up to the United Nations Conference on the Human Environment in Stockholm in 1972 and the intervening years since.
The Regeneration Project UnfinishedBusiness–PerspectivesfromSustainableDevelopmentPioneers 9
Reflecting on Rio 1992In1992,thescientist,broadcasterandenvironmen-
talactivistDavidSuzukiattendedtheRioEarthSum-
mitalongwithhis12-year-olddaughterSevern,who
hadbeggedtoattend.AttheSummit,Severnmade
ahistoricspeechtodelegates inwhichshebravely
asserted,“Iamfighting formy future. Iamhere to
speakforallgenerationstocome...Iamonlyachild,
yetIknowthatweareallinthistogetherandshould
actasonesingleworldtowardonesinglegoal.”
In reflecting two decades later on his daughter’s
speech, Suzuki worries that not much has changed
sinceSevern’saddress:“Thesadthingisthat20years
laterthevideoofherspeechisresonatingtremendously
on the Internet.But,a lotofpeople think that itwas
somethingshegaverightnow,becauseit’severybitas
relevanttoday.”
Inourinterviews,somePioneersrecalledtheopti-
mismof 1992. IsraelKlabin, formermayorofRiode
Janeiro,anorganizeroftheEarthSummitandFounder
oftheBrazilianFoundationforSustainableDevelop-
ment, said, “In 1992, we were absolutely sure and
hopeful and enthusiastic about change in the right
direction.”
Unfortunately, that enthusiasm did not translate
intosufficientaction.MauriceStrong,whoservedas
United Nations (UN) Secretary-General for the 1992
RioEarthSummit,stated:“Ifgovernmentshaddone
what they agreed to do [at Rio] wewould bemuch
closertoananswerthanwearenow.”
ThatisnottoundercutthesignificanceoftheSummit
itself,ahistoricpointinourjourneytowardssustain-
ability.MadameGroHarlemBrundtland,formerPrime
MinisterofNorwayandChairoftheBrundtlandCom-
mission,explains,“It isexceptional ininternational
relationsthatasummitlikethat[couldgenerate]the
climateconvention,abiodiversityconventionandan
Agenda21.All thiswasdone infiveyearsafter the
reportOur Common Future. In that sense, the first
Rioconferencewasinmanywayssensational.”
Convergent CrisesThe recent—andongoing—financialcrisishasmade
foradramaticandchallengingbackdroptotheRio+20
SummitcominginJune.Whilemanycountries’econo-
miescontinue to try tomakesenseof theirbalance
sheets,someexpertshavecalledforeconomicreform
andforareworkingofcapitalism.
ManyofthePioneersspokeoftheneedtoreevalu-
atethesystembywhichwemeasuresocietalprogress.
VandanaShiva,anenvironmentalactivistandFounder
of Navdanya, believes we need to reprioritize and
refocus:“Fortoolong,wehavebeenmadefoolsof
withtheillusionsandfictionsofWallStreet.”
We are, according to Shiva, “at a cross-roads of
multiplecrises…thecrisesoftheeconomyandfinancial
world,ofclimatechange,ofpeakoil,overallecological
crisis,thewatercrisis,thebiodiversitycrisis…it’snow
aconvergentcrisis.”
Urgency & Crisis
To read background briefs on sustainable development milestones over the last 25 years, including the Brundtland Commis-sion, the 1992 Earth Summit and the 2002 Johannesburg Summit, visit:
www.theregenerationproject.com
The Regeneration Project UnfinishedBusiness–PerspectivesfromSustainableDevelopmentPioneers 10
A Race Between Tipping PointsAsturbulenceinthemarketsandtheecosystemin-
creases,itbecomesimperativetogenerateawhole
system response from government, business and
society. Lester Brown, Founder & President, Earth
Policy Institute, told us, “Wehave reached a point
where our scarcest resource is time…nature is the
timekeeper,butwecan’tseetheclock.”
He characterizesour challengeas a racebetween
twotippingpoints.Thefirstisapoliticaltippingpoint,
themoment in timewhenhumanitydecides to take
actionontheseurgentissues.Thesecondisanenvi-
ronmentaltippingpoint:thepointbeyondwhichthere
islittlewecandotorecoverwhatwehavelost.Social
andeconomicimbalancesonlyexacerbatetheurgen-
cy,hasteningtheapproachofbothtippingpoints.
Truth & ChangeWhilethedesiretoturnthetideisstrong,transfor-
mative change is nearly always the sum of many
steps, both tentative and fundamental—a process
ofprototyping, learning from failure,evolutionand
continuousimprovementovertime.
ShaZukang,Secretary-GeneralofRio+20andhead
oftheUNDepartmentofEconomicandSocialAffairs,
said,“Thechangecannottakeplaceovernight.Itcan
only be incremental. That said, being incremental
doesn’tmeanyoushouldgoslow…let’sdoitimme-
diately through education, throughmassmedia to
educate,wakeup,shakeupthepeople.”
ThePioneersbelievewe canandmustdomore to
raiseawarenessamongthepublicwiththeknowledge
wehave.RajendraPachauri,ChairoftheIntergovern-
mental Panel on Climate Change (IPCC) said, “The
messagethatshouldhavegoneouttothepublicand
that could have created a basis for action has not
beendisseminated effectively. Even today,we know
thattherearealargenumberofpeoplewhodon’tbe-
lieveinthehumanlinkbetweenwhatwe’redoingasa
societyandclimatechange.It’scriticallyimportantto
spreadthetruth.”
FromOur Common FutureanditspredecessorLimits
to Growth,tothereportsoftheIPCCandinitiativeslike
350.org, society hasmore than adequate rhetoric,
scienceanddata.
DougMiller,GlobeScan’sExecutiveChairmanand
CEO, said, “It takes 20 years to get fundamentally
new thinkingpercolating through society, especial-
lysocietyataglobalscale.Fromourpollingtoday,
citizensofdevelopingcountriesaremoreconcerned
aboutenvironmental issuesthanthoseofus inthe
industrializedworld.”
Urgency & Crisis
How can we get people to take the science seriously?
How can we share the knowledge?
How can we encourage people to change their behavior?
Which tipping point will we reach first?
Will we act before the clock runs out?
The Regeneration Project UnfinishedBusiness–PerspectivesfromSustainableDevelopmentPioneers 11
Pioneers, thoughfrustratedbythe lackofprogress
wehavemade in the last twodecades, believewe
have theopportunity tocreateanewkindof road-
mapforsociety.
BrownthinksofthisroadmapasPlanB,analter-
native to Plan A because “business as usual isn’t
anoptionany longer.” InBrown’s conception,PlanB
entailscuttingcarbonemissionsby80%by2020(no-
tably 2020, not 2050, themore common yet distant
targetoftenassociatedwiththislevelofemissionsre-
duction),stabilizingpopulationtonotmorethaneight
billion people, eradicating poverty, and restoring
theeconomy’snaturalsupportsystems,likeforests,
soils,grasslands,aquifersandfisheries.Thekey,he
says, in“adoptingPlanB,orsomethingsimilar,” is
leadership.
Bill Ford, Executive Chairman of the Ford Motor
Company,echoestheneedforleadership:“Youhave
tohavevision,andyouhavetohaveaplantoachieve
thatvision.Youhavetohaveawaytoaffectsolutions.
That’swhata leaderdoes:solveproblems.This isa
bigproblem,andwe’vegottosolveit.”
If done right, an alternative vision, plan or road-
mapcouldpavethewaytowardswhatShivacalls“a
newkindofstability”characterizedby“vibrantlocal
economies based on biodiversity, active, living de-
mocraciesanddiversecultures.”
Urgency & Crisis
What could our collective Plan B look like?
What elements should an actionable roadmap contain?
Who should drive the plan forward?
Leadership & Vision
The Regeneration Project UnfinishedBusiness–PerspectivesfromSustainableDevelopmentPioneers 12
Governments Bear the Greatest BurdenWhiletheapproachingRio+20Summitisintendedto
beagatheringofheadsofstateandministers from
around theworld, the Pioneers remain sober about
their expectations of global political leaders. Achim
Steiner, Executive Director of the UN Environmental
Program(UNEP),explained,“Ithinkthepoliticallead-
ershipinmostofourcountriesatthemomentiseither
preoccupiedornotabletofocusonthischallenge,or
notpreparedtofocusonit.”
NitinDesai,DeputySecretary-Generalofthe1992
Earth Summit, elaborated, “Governments have the
longestwaytogo.Internationalrelationsisdesigned
for national governments to protect their national
interest…notissueinterest.”Thelaboredenactment
of the Kyoto Protocol—an indirect outcome of the
first Earth Summit—is indicative of this hindrance.
The Protocol finally became enforceable only in
2005, nearly adecadeandahalf after theoriginal
EarthSummit,andtheworld’sbiggestpolluteratthe
time, theUnitedStates, refused to ratify it.Others
arebacksliding—forexample,attheendoflastyear,
Canada formally announced that it will withdraw
fromtheProtocol.
Both the global public and sustainability experts
havebecomeincreasinglycriticalofgovernmentsover
thepastfewyears.Trustingovernmentshasdropped
precipitouslyamongtheglobalpublic,4whilesustain-
abilityexpertsfrombusiness,government,academia
andnon-governmentalorganizations(NGOs)arealso
increasinglylikelytogiveapoorratingtogovernment
leadershiponsustainabledevelopment.5BjornStig-
son, formerpresidentof theWorldBusinessCouncil
forSustainableDevelopment(WBCSD)warned,“We’re
goingtohavetoreachadeepercrisisbeforegovern-
mentsfeeltheyhaveapoliticalmandatetoact.”
Roles, Responsibilities & Leadership
If not government, who will fill the gap?
What is the role of civil society? Of business?
4 According to GlobeScan’s 2010 survey across 24 countries, governments receive the lowest trust rating of any institution, behind NGOs, the UN, churches, the media and business.
5 This finding is from The Sustainability Survey, an ongoing research program conducted in partnership between GlobeScan and SustainAbility. Between 500-1,000 experts from 60+ countries are surveyed 6 times a year from civil society, business, government and academia.
The Regeneration Project UnfinishedBusiness–PerspectivesfromSustainableDevelopmentPioneers 13
NGOs Shift FocusMany NGOs have modified their approach over the
last two decades, from relatively uni-dimensional
campaigning to being increasingly valuable sources
ofon-the-groundknowledgeandmoreopen-minded
collaborators.WhileNGOscanandshouldcontinueto
usecampaignsstrategically—theycanbeeffective—
manyalsonowseek toworkside-by-sidewithbusi-
nesstoco-createnewsolutions.
Madame Brundtland explained, “The suspicion
betweentheNGOcommunityandthebusinesscom-
munitywasdeep25yearsago.Now,therearebridges
building…thattheynowlinkuptogether,talktoeach
other,andworktogetheristhenewarena.”
Businessleadershavebecomesomeofthebiggest
proponentsoftheshiftingstrategiesofNGOs.BillFord
recalls, “There’s been a tremendous change in atti-
tude,bothattheNGOlevelandatthecorporateside.
We in thebusinessworld,and I shouldsayparticu-
larlyatFord,havegonefromacomplianceattitudeto
oneofreallystrivingforleadership.We’vedonethat
withthehelpofNGOsalongtheway,whohaveboth
encouragedusandproddedusovertheyears.”
In contrast to government, NGOs often can move
quickly, aren’t afraid to experiment, and, particularly
withthehelpofsocialmedia,canmobilizeconstituents
with impressive effect. The conservationist Yolanda
Kakabadse,whoactedastheNGOliaisonattheEarth
Summit and is now President ofWorldWildlife Fund
(WWF)International,explained,“Thereisnorecipefor
sustainabledevelopment.[Civilsociety]ispermanently
challenging[itself ]totrynewwaysofdoingthings.And
sometimeswesucceedandsometimeswedon’t.But,
[we]havethecouragetotry,torisk,togoforit.”
Bjorn Stigson cited the 2002 World Summit on
Sustainable Development in Johannesburg as a
public, visible example of NGOs’ changing tactics.
In a surprising showof solidarity in SouthAfrica a
decadeago,Greenpeaceandmembersof thebusi-
nesscommunityissuedajointstatementexpressing
frustration with governments on their “mixed, and
often contradictory signals” on the “environment,
especiallyongreenhousegasemissionreductions,”
“whichisnotgoodforbusinessnor,indeed,forthe
futureofhumanity.”
Broader Business AgendaSomebusinessesarehelpingfillthegapleftbygov-
ernment, becoming more efficient, innovating in
processandtechnology—andputtingmorepressure
ongovernment.This isawelcome,butfairlyrecent
development.
At the1992EarthSummit,many inbusinesswere
merely learning about sustainability challenges and
oftenwerenotpartoftheconversation.Whenandif
businesstookactioninthe‘90s,itwasoftenaccused
(andtoooftenfoundguilty)ofgreenwashing.
Today,businessisakeyplayer.BillFordexplained,
“Theroleofbusinessinthebroaderagendareallyhas
changedandIthinkforthebetter…ifyouthinkback
20yearsago,businesswastheenemy.”
While it is hard to generalize about business, or
government for that matter, the Pioneers largely
agreed thatbusinesshasevolved in itswillingness
tocontributetosustainabledevelopment,andmany
already anticipate business to be a leader in the
journeyahead.Bruntlandsaid,“Thereisaneedfor
businesstotakeontheopportunitiesandthelead-
ership to convince political leaders about what is
necessary.”
SirMarkMoody-Stuart, formerChairmanofAnglo
AmericanandRoyalDutchShellandChairofBusiness
ActionforSustainableDevelopment(BASD)in2002,
alsoseesamoredirectcorrelationbetweenbusiness
andsustainability:“Ifyoulookattheburningissues
ofsustainabilityandifyousaywhataretheissuesfor
business,theissuesforbusinessareactuallymoreor
lessthesameastheissuesfortherestofsociety.”
Roles, Responsibilities & Leadership
The Regeneration Project UnfinishedBusiness–PerspectivesfromSustainableDevelopmentPioneers 14
Howhasbusinessprogressedfrombeinganoutsid-
ertobecomingakeypartofthesolution?Jonathan
Porritt, Founder of Forum for the Future, exhorted,
“Business can see this reality more acutely than
politicians seem able to do. They’ve assessed that
youcan’treallymakegoodbusinessinacollapsing
planet.”
Manybusinesseshavebegun to focusmoreon in-
novation, viewing sustainability as a surmountable
challenge.KrisGopalakrishnan,ExecutiveCo-Chairman
of InfosysandChairof the2012BusinessCouncil for
SustainableDevelopment(BASD),said,“Researchand
innovationcreatedisruptivechangeandcanfundamen-
tallyalterthewaywelookataproblem.Ifyouactually
createasolutionforclimatechangeandsustainability,
greengrowth,aswellassolvesomeoftheproblemsof
unemployment…thisiswhere[we]cancompete.”
Yet the challenge remains for companies to get
ahead of expectations. According to GlobeScan’s
trackingofglobalsocietalopinionacrossthedecade
between2001and2011,thereisanongoinggapbe-
tween what the public expects of business and its
perceived performance in delivering in the areas of
theeconomy,societyandenvironment.Thisgapwill
continue toputpressureonbusiness tomakegood
onsocietalexpectations(SeeGraph1).
Disruption
Business on a Collapsing Planet
Graph 1: Expectations vs Performance Gap, BusinessAverage of 15 Tracking Countries,* 2001–2011
R11W1_2t12t_gap
*Includes Australia, Brazil, Canada, Chile, China, France, Germany, Italy, Mexico, Nigeria, Russia, SouthKorea, Turkey, the UK, and the USA
**Aggregate net expectations of up to ten responsibilities of large companies (not all responsibilitieswere asked in each country each year)
***Aggregate net CSR performance ratings often industries (not all industries were asked in each country each year)
56
-6
2001
2003
2005
2007
2009
2011
-10
10
30
50
70
CSR expectations**
CSR industry performance***
The Regeneration Project UnfinishedBusiness–PerspectivesfromSustainableDevelopmentPioneers 15
Accounting for ExternalitiesTotrulyachievesustainabledevelopmentinthenext
generation,wewillneedtoreconsidertheincentives
andpenaltiesinoureconomicsystem,whicharetoo
littlechangedsincetheEarthSummit.
Porritt stated, “Given that not very much has
changed in termsof theorthodoxeconomicprescrip-
tionforprogress,whatbusinesshasactuallydone in
theintervening20yearsisastonishing.Thisisamarket
thatisfundamentallydesignedtothwartsustainability.
It’sdesignedtocontinuetoexternalizecost,topunish
goodperformance.It’sdesignedtorewardthosewho
cutcornerswithnaturalcapitalandwiththefutureof
theplanetanditslifesupportsystems.”
Ourcurrenteconomicsystemdoesnotaccountfor
ormeasuretheresourcesthatmakeoureconomies,
ourcompaniesandourlivesfunction.Shivaexplained,
“‘Growth’onlymeasurescommercial transactions. It
doesn’tmeasuregrowthinanyrealterms.Itdoesn’t
measure the growthof our trees, the growthof our
soil,thegrowthofourchildren,thegrowthofhealthin
society,thegrowthofhappinessandjoyinsociety.”
Twenty-firstcenturybusinesseswillhavetobemore
cognizant of planetary limits, and also bewilling to
createnewmodelsthattakeintoaccountbiodiversity
andnaturalresources.
Shifting the DiscourseOf course, creating economic system change, and
withinthat, fosteringnewbusinessmodelsandnew
definitionsofvalueandprosperity,isacomplexunder-
taking.Whatstepswillleadusthere?
JohnElkington,FounderofSustainAbilityandVolans,
opined,“OneofthefundamentalproblemsIthinkthe
C-suiteactors in thisspacecurrentlyhave is thatas
moreandmoreof thisbecomessystemic,not justa
single issue, it becomes dramaticallymore complex
intermsofwhodoeswhat,who’sgotresponsibility,
where the risksandopportunities lie,what the role
ofthisparticularcompanymightbemovingforward.”
Steinerbelievesthatweneedtochangethelanguage
weuse.“Ibelieve thenotionof ‘trade-offs’hasbeen
oneofthemajorfactorsthathasheldusback…Wehave
toaddresstheinteractivityofthethreedimensionsof
development.Wehave tounderstand that therecan,
inthelongrun,benotrade-off,becauseifwedestroy
the ecological infrastructure and foundations for our
economy,therecanbenofuturedevelopment.”
Partoftheproblemappearstobealackofshared
objectives.Companiescompete inawaythat incen-
tivizesdepletionofnaturalresources.
Steinercontinued,“Ourglobaleconomicdiscourse
ispremisedconstantlyoncompetitionandtherefore
conflict.Wearetalkingaboutzero-sumgamesallthe
time and not aboutwhatwe can gain from shared
objectives.”
Disruption
The Regeneration Project UnfinishedBusiness–PerspectivesfromSustainableDevelopmentPioneers 16
Changing PrioritiesMany Pioneers call for a rethink of the economic
system, although they use different language to
describe similar goals. Maurice Strong calls for a
“transformationofoureconomyfrombeingeconom-
icallydriven tobeingecologicallydriven,”whereas
Klabinidentifiesaneedto“changetheprioritiesof
theeconomicmatrix.”Zukangreferencesa“change
ofparadigm”inthe“patternofproductionandcon-
sumption”andStigsonacknowledges that “weare
lookingataworldwhichisresourceconstrainedand
pollutionconstrained”and“youhavetoputproper
pricingonthese…youhavetointegratethemintothe
economicsystem.”
Thecallforchangingthewaywelookatoureconom-
icsystemisnotnew.RobertF.Kennedymadewavesin
a1968speechwhenhesaid that the“grossnational
product [of a country]measureseverything, in short,
except that whichmakes life worthwhile.” To realize
thatsomanyleaders—asfarbackas45yearsagoand
with frequency today—have called for dramatic sys-
temiceconomicchangeisremarkableandpowerful.
ItechoesthelanguagereleasedintheJanuary2012
UN report of the High-Level Panel on Global Sus-
tainability,Resilient People, Resilient Planet,which
arguesfora“newpoliticaleconomy”forsustainable
development whichwould recognize the pricing of
environmentalexternalities,theimportanceofinno-
vationandvaluebeyondnarrowconceptsofwealth.
Thereportrecommendsthatthe“internationalcom-
munityshouldmeasuredevelopmentbeyondgross
domesticproduct(GDP)anddevelopanewsustain-
abledevelopmentindexorsetofindicators.”
Biting the Bullet, Taking the LeadWedeeplyhope thatRio+20will result in concrete
commitments toward a new political economy,
but what happens afterwards may be even more
important.
Corporateleadersarebeginningtotakeupthechal-
lengetodriveenginesofchangeforward.Accordingto
thelatestThe Sustainability Survey,expertspointto
anewgenerationofcompaniesleadingthechargeon
thetransitiontosustainabledevelopment, including
Unilever,GE,Interface,Marks&SpencerandNatura.
Thesecompanieshavenotonlyintegratedacompre-
hensivevisionwithstrongperformancebuthavealso
beenabletoeffectivelyengagestakeholdersintheir
vision.
Jim MacNeill, Secretary-General of the Brundtland
CommissionandleadauthoroftheBrundtland Report,
said,“Ihatetoimaginewherewewouldbeifanumber
ofcorporateleadershadnotbittenthebulletandtaken
thelead.Theyhavetheimaginationtoappreciatethat
a shift to more sustainable forms of development,
more sustainable in product design, for example,
orinmanufacturingorinmarketing,couldmakean
enormousdifferencetotheirbottomline,andmore
generally.”
Barriers & Levers
The Regeneration Project UnfinishedBusiness–PerspectivesfromSustainableDevelopmentPioneers 17
A2011surveyofBusinessforSocialResponsibility
(BSR)membercompanies,conducted inpartnership
withGlobeScan,illustratesthatsustainabilityintegra-
tion in companies is only halfway there.The survey
of nearly 500 corporate practitioners showed that
whereascorporatecommunicationsteamsandpublic
affairs departments have a high level of integration
with sustainability / corporate social responsibility
(CSR)departmentswithincompanies,finance,investor
relationsandhumanresourcesteamsremainfarless
engaged(SeeFigure3).
Thechallengeaheadwillbetranslatingthevisionof
afewleadingcompaniestothemajorityofbusiness.
Again, Elkingtonexplained, “I think it’s abig stakes
game and many of the C-suite people that I watch
closelyarefindingitverydifficultto…buildthesense
ofconvictionthatthisisthefutureandthey’vegotto
playintoit.They’restillinthisperiodofvacillation.”
Barriers & Levers
CSR CorporateCommunications
PublicA�airs
SupplyChain
CEO’sO�ce
Brand
Operations
Marketing
Legal
R&D
InvestorRelations
HumanResources
Finance
ProductDevelopment
Figure 3: Level of Engagement With CSR/Sustainability Function
(n=498 companies)
The Regeneration Project UnfinishedBusiness–PerspectivesfromSustainableDevelopmentPioneers 18
As businesses strive to integrate sustainability and
thinklonger-term,itwillbeincreasinglyimportantto
applyalarge,butoftenhiddensystemlever:financial
sectorplayers.
Investors,banksandtheanalyststheyemployto
analyze and value public companies have histori-
cally lagged behind other companies on issues of
sustainability. Matthew Kiernan, Founder and CEO
ofInflectionPointCapitalManagementandInnovest
StrategicValueAdvisors,remembersthemomenthe
noticedthismissingpieceofthesystem.
In1992,heservedasaDirectoroftheWBCSD,un-
derStephanSchmidheiny, then thechiefadvisoron
business and industry to the UN Secretary-General.
SchmidheinyandKiernaninvitedthreeofthetopten
bank chairmen in the world at the time to join the
WBCSD,andtheywereroundlyturneddown.Kiernan
recalled, “That was a very sad commentary on the
awarenessoffinancialmarketsatthattime[of ]sus-
tainability.”
Kiernansuggestsbankshavehadaone-dimensional
view of their role in sustainable development. Be-
causetheirdirectenvironmentalimpactisminimalas
comparedtomostotherindustries,toomanyfeltthey
couldoptoutof thediscourse.But,Kiernan said, “If
you’relookingfortransformationalchange,thecapital
markets,thepurveyorsofthefinancialoxygensupply
ofcompanies,shouldbethefocus.”
ThecreationoftheUNPrinciplesforResponsible
Investment (UNPRI), with signatories who have
$30trillioninassetsundermanagement,indicates
progress. By signing the principles, these inves-
tors acknowledge that environmental, social and
corporate governance (ESG) issues can affect the
performanceofinvestmentportfoliosandtherefore
mustbegivenappropriateconsideration.However,
merelysigningadeclarationleavesplentyofroom
betweenrhetoricandreality.
Barriers & Levers
Is it possible to change ingrained ideas about shareholder value generation?
How can we influence financial institutions and investors to accept longer-term return horizons?
Investors, a Force in Regeneration
The Regeneration Project UnfinishedBusiness–PerspectivesfromSustainableDevelopmentPioneers 19
Kiernan believes that we must focus increasing
energiesoninfluencingbanks.Heurged,“Ifthecapi-
talmarkets can start sendingmessages about how
importanttheseissuesareforcompetitiveness,profit-
abilityandshareholdervalue,andcommunicatethose
sentimentstocorporatechieftainsinamoreeffective
waythanisbeingdonetoday,then[thatwouldbe]the
most powerful force on the planet for regeneration
and[move]usclosertothesustainabilitynirvanathat
we’dallliketosee.It’sthemostpowerfulsinglelever
thatwehave.”
The Sustainability Survey conducted in December
2011, in collaborationwithUNEP for its forthcoming
reporton thebusinesscase for theGreenEconomy,
reveals that a very largemajority (88%) of the 642
experts polled see pressure for short-term financial
resultsas theprimarybarrier tobusinessbecoming
moresustainable(SeeGraph2).
Barriers & Levers
Youth & Hope
Inadditiontobusinessleadershipandneweconomic
models, the Pioneers point to several reasons to
remainhopefulaboutthejourneyahead.Brightspots
haveemergedintheareasof localgovernmentin-
novation, citizen participation, clean energy and
technologydevelopment.
Many Pioneers acknowledge another bright light
onthehorizon—theconscientious,connectedteens,
twenty- and thirty-somethings that will form future
generationsofleaders.Thiscohorthasgrownupwith
socialentrepreneurs,citizenactivistsandsocialinno-
vatorsasrolemodels.
PioneersseethemobilizationofGenerationYasa
key part of taking the outcomes of Rio+20 forward.
Suzukiexplained, “Youthhave thegreatest stake in
what happens now, because it’s their whole future
that’sgoingtobeaffectedbywhatisorisnotdone…
[they]havetobethemusclepowertotakealotofthe
wisdomfromeldersanddrivethatin.”
Kakabadse agrees that youth will be an impor-
tant part of the roadmap for the future. “I think
theyoungergeneration is theone that feelsmore
threatenedandatthesametimeistheonethatis
reactingmoretowardsthesechallengesandthese
fightsforthefuture,”shesaid.
Graph 2: Barriers to Business’s Transition to Sustainability
TSS_w6_7
Lack of effective management tools/methodologies for business use
Lack of international standards
Low consumer demand for greenbusiness practices, products and services
Low awareness of business imperative among business leaders
Inappropriate regulations
Financial short-termism 88 9 3
65 24 11
65 22 13
57 25 18
50 31 19
45 27 28
Barrier Not a barrier
The Regeneration Project UnfinishedBusiness–PerspectivesfromSustainableDevelopmentPioneers 20
On the Next FrontierThe Rio+20 Summit has already been rescheduled,
has suffered from a slow accreditation process and
several heads of state showno indication that they
willattend,includingUSPresidentBarackObamaand
BritishPrimeMinisterDavidCameron.
Amidst ambivalence about Rio+20, the Pioneers
remainhopeful.
Millercallsonthosewithinthesustainabilitycom-
munity to bring the rest of theworld along. In our
conversation, he said, “The sustainability commu-
nityhasbeenpushingaropefor20years. It’stime
tolockintoapositive,culturalmessageandimagine
whatapositivelifeexperiencecanhappenwithina
sustainablesystem.”
“Personal engagement, personal commitment,
andbuildingconfidencewithotherpeopleandother
nations istheonlywaytomoveforward,”Madame
Brundtlandsaid.
Steineralsogainsinspirationfromordinarycitizens.
“ThepeoplewhointheArabSpringjustnowstoodup
andsimplysaid, ‘Wewantsomethingdifferent.’The
peoplewhobroughttheBerlinWalldown.Theseare
peoplelikeyouandI,normalpeople,whosimplysaid
webelieve inan ideaandweare ready tostandup
forit.”
This Is About the Long TermTheUNreportResilient People, Resilient Planet clearly
points to actions governments should take.We look
forward to seeing what timelines, goals and action
plansaredraftedattheRio+20Summititself.
Keyinourviewistherolebusinesswillplay.Byvir-
tueof itsowngrowingpowerand the corresponding
decline in theabilityofmanygovernments todeliver
variouspublicgoods,businessisunderrisingpressure
toleadeffortsaimedatsystemschange.Furthermore,
businesshasstartedtorealizeitcannotcontinuetode-
livernarrowlyontheimperativeofshareholderreturn
withoutwiderattentiontothesystemicconditionsthat
determineandsupportitslong-termsuccess.
Desaistates,“Ourhopeisthatpeoplerisebeyond
the immediateproblem.This isnotaboutnextyear,
thisisaboutthelongtermof50yearsor100years.”
The Regeneration Projectaimstoengagebusiness
leadersandkeystakeholdersacrosstheworldonthe
mostpressingsustainabledevelopmentquestionsand
how they apply particularly to theprivate sector.We
lookforwardtoco-creatingaroadmapthatwillindicate
howbusinesscancontributetocreatingresiliencyand
changeintheyearsanddecadesahead.
The Road Ahead
With low expectations for the actual Summit, will we see the commitments necessary to infuse the
sustainable development movement with new energy, new leaders and concrete actions?
Will Rio+20 somehow manage to exceed expectations?
The Regeneration Project UnfinishedBusiness–PerspectivesfromSustainableDevelopmentPioneers 21
What’s Next
Throughout 2012, The Regeneration Project will explore the past, current and future state of sustainability leadership.
Startingthismonth,wewillreleaseThe Ray Anderson Memorial InterviewsinpartnershipwithGuardian Sustainable Business.Visitwww.guardian.co.uk/ sustainable-business/regeneration toviewthevideosandjointheconversation.Inaddition,throughoutthisyearyoucancheckuponourprogressandbecomepartofthediscussionbyvisitingwww.theregenerationproject.com.
Thisspringandsummer,wewillreleaseaseriesofpublicopinionpollsandstakeholdersurveysrevealingperspectivesonRio+20beforeandaftertheSummit.WewillbepresentinginsightsfromThe Regeneration Projectatavarietyofconferencesincluding:Guardian Sustainable Business QuarterlyinLondoninJune,Sustainable Brands ’12inSanDiegoinJune,NetImpactinBaltimoreinOctoberandSustain Our AfricainCapeTowninOctober.
WelookforwardtoengaginginconstructivedialogueonthegroundduringtheRio+20Summitandhopetomeetlike-mindedpartnersandcollaboratorsduringsideeventsattheSummit.
Lastly,afterRio+20,andafteroursecondwaveofglobalpublicandexpertpollingisconductedinthesummer,GlobeScanandSustainAbilitywillhostanumberofintimateSalonsindiversecitiesworldwidefeaturingstakeholdervoicesfromallsectors.Inthesediscussions,wewillexploreanddiscussthequestionsraisedinthiswhitepaperandforthcomingreleasesfromThe Regeneration Project,andbeginworkonthefinalRegenerationProjectroadmap.
Formoreinformation,visitwww.theregenerationproject.com.
TofindouthowyourorganizationcangetinvolvedinThe Regeneration Project,pleasecontact:
[email protected] +14159440140
or
[email protected]+14169693088
The Regeneration Project UnfinishedBusiness–PerspectivesfromSustainableDevelopmentPioneers 22
About Us
AboutGlobeScan
GlobeScandeliversevidence,insightsandideasthatbuildvalueforclientsthroughstrongerstakeholderrelationships.Uniquelyplacedatthenexusofreputation,brandandsustainability,GlobeScancombinesrigorousresearchwithcreativeandchallengingthinkingtoinstilltrust,driveengagementandinspireinnovationwithin,aroundandbeyondourclients’organizations.
Formoreinformation,visitwww.globescan.com
About SustainAbility
SustainAbilityisathink-tankandstrategicadvisoryfirmworkingtoinspiretransformativebusinessleadershiponthesustainabilityagenda.Establishedin1987,SustainAbilitydeliversilluminatingforesightandactionableinsightonsustainabledevelopmenttrendsandissues.
Formoreinformation,visitwww.sustainability.com
The Regeneration Project UnfinishedBusiness–PerspectivesfromSustainableDevelopmentPioneers 23
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