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Changing Tack Final Report of The Regeneration Roadmap Changing Tack Extending Corporate Leadership on Sustainable Development Contents Foreword 3 1 Executive Summary 4 2 Introduction 8 3 Ship’s Log 12 3.1 1972-2012 13 3.2 Sea Change 17 4 Reading the Weather 20 4.1 Stalled Progress 21 4.2 High Expectations, Low Trust 23 4.3 Tomorrow’s Forecast 25 5 Taking the Helm 26 6 The Voyage Ahead 30 6.1 Vision 32 6.2 Goals 34 6.3 Offer 36 6.4 Brand 38 6.5 Transparency 40 6.6 Advocacy 42 7 Closing Thoughts 46 Acknowledgements 50 Notes 51 Foreword Our Journey The transition in metaphor expressed by Changing GlobeScan and SustainAbility seized 2012 and Tack and its nautical themes move us from road its notable sustainable development milestones atlas linearity on terra firma to the uncertain and as the time to assess progress on sustainable complex dynamics of navigating over water. We find development, to examine the evolution of the role of this metaphor apt for today’s growing sustainable business in delivering this agenda to date, and as development challenge. Changing Tack holds that an opportunity to consider what and how might be choices made on sustainable development now done, particularly by the private sector, to accelerate through 2020 will shape success or failure through and scale future progress in the urgent manner mid-century. In light of this, the report argues that required. business leaders must commit to do more, even in the face of uncertainty, to guarantee present and The project that we developed for this purpose— future societies and ecosystems thrive—their own The Regeneration Roadmap—looked back institutions included. across the full arc of sustainable development since 1972, then tested its present state via the Before the Wind pioneer interviews captured in The Ray Anderson To sail on water is to constantly adjust course in Memorial Videos and multiple quantitative global response to changing conditions and thus continue surveys of sustainability experts, the general public in the best manner possible towards the ultimate and consumers. This research was augmented destination. Changing Tack embraces this concept, by workshops with opinion leaders in Beijing, chasing realization of the Brundtland definition London, Rio de Janeiro, San Francisco, Shanghai of sustainable development and its inherent and Washington, DC, and by drawing insight from commitment to inter- and intra-generational equity, the extensive research of others. Our early/mid- while recognizing that we are defining the way to Chris Coulter course reflections were released in three white deliver this en route. President, GlobeScan papers, Unfinished Business in March 2012, Changing Tack offers the private sector means for Down to Business in June 2012, and Re:Thinking piloting the unfamiliar seas ahead. It considers Consumption, published in November 2012 with sustainable development and the role of business BBMG. Changing Tack is the project’s final report. in achieving it through a systems lens, sketching We have enjoyed the support of remarkable what GlobeScan and SustainAbility see as the most sponsors and partners. We thank especially critical leadership attributes. Especially in light of Presenting Sponsors BMW Group and SC Johnson; halting governmental progress over nearly half a Sponsors Cisco, DuPont, Interface and Pfizer; century, it finds that business must play a greater Media Sponsor Guardian Sustainable Business; and role, and calls on business leaders to demonstrate the many other partners and advisors listed in the the informed courage required to tackle the Acknowledgements. Collaboration with a diverse set unknown, and to embrace the approaches and of organizations and stakeholders has been a critical business models capable of taking us forward most element in ensuring a robust set of conclusions and swiftly. recommendations. Mark Lee While The Regeneration Roadmap crowd- Executive Director, SustainAbility Setting Sail sourced considerable inspiration and intelligence, After a year spent mapping The Regeneration Changing Tack is ultimately shaped by GlobeScan Roadmap, we find the road has led us to the edge and SustainAbility’s combined experience of a recognized but largely uncharted sea across and perspective. We hope our vision and which the journey must continue. Forward progress recommendations help ensure safe, rapid passage will demand not only shifting modes of travel, but to a sustainable future, and we invite you to join us also new skills and approaches. on the journey. Chris Coulter, Mark Lee 3 1 Executive Summary 4 Changing Tack is the final output While optimistic about what is possible to achieve, of The Regeneration Roadmap. Changing Tack finds sustainability challenges to be great and growing, and that solutions are not The project seized 2012’s major yet proliferating at the speed and scale needed sustainability milestones—particularly to avert widespread environmental, social and the Rio+20 summit in Brazil—as economic disruptions. It finds low expectations that governments alone will provide the leadership an opportunity to assess progress needed to change course and looks to other on sustainable development, to institutions, particularly business, to fill the gap. examine the evolution of the role of While recognizing and encouraging proliferation of business in delivering this agenda existing sustainability best practice from business, the policy realm and civil society, Changing Tack to date, and to consider what and argues the need for shifting both the focus and degree how might be done, particularly by of effort applied—a change of tack—in order to the private sector, to accelerate and integrate sustainability considerations into the global economic system. scale progress in the urgent manner required. The Regeneration Roadmap The report suggests that the private sector has both the capability and reason to play a catalytic team conducted interviews with leadership role where collective action and change to pioneers in this field, held dialogues underlying system conditions are required. This will with thought leaders around the world, demand that businesses improve and evolve their own strategies and practices, as well as stimulate and undertook extensive research and support the shifts in policy, capital markets including multiple surveys testing and consumption that will be required to achieve expert, public and consumer attitudes sustainable development. and expectations regarding sustainable Perfect Storm Changing Tack recognizes that, at the moment that development. the private sector is called to do more to lead, the sustainability challenge is extremely stark. All told, and in spite of encouraging but too limited progress from path-breaking institutions in all sectors, the best knowledge available points to worsening trends on all but a few global environmental metrics and the likelihood of significant, widespread disruption to human development in the near future. Those canvased in Regeneration Roadmap surveys and our wider research express significant doubt that conventional actors including government, the United Nations or multilateral institutions will address the problem, or that business can deliver adequate progress without substantial changes in the economic system. The global public believes “current social, environmental and economic challenges represent a bigger crisis than we have ever faced before,” and yet the public is also increasingly disengaged, with measures of concern across a range of environmental issues touching 5 maximum low points in 2012 since GlobeScan achieve a tipping point; in spite of the real pressure began tracking concern in 1992. In addition, it faces to deliver returns under existing market consumers are stuck, with the number of “deep rules, the private sector appears capable of greater green” consumers remaining fewer than one in five leadership. Without leaving anyone else behind, it’s overall, and with almost no evidence of a rise in time for business to take the helm. sustainable consumer behavior since 2008. The Voyage Ahead Amidst all of this, experts and the public express less To guide companies embracing the imperative of trust in business and government than any other sustainable development leadership, Changing Tack type of institution. However, they also express the offers a prescription as to how leading businesses can highest expectations for their future leadership. With optimize their own sustainability strategy and effort, governments still falling short in terms of providing inspire and pressure their peers and leaders from effective guidance on the national and international other sectors to follow suit, and best influence and stage, Changing Tack concludes that companies, accelerate wider systemic changes. alone and in combination with other actors, face both This recommendation plays out across six attributes the expectation and opportunity to chart the route of ‘extended’ leadership (see Figure 1-1), the forward on sustainable development in the near term, combination of things companies control and should and that the question of the moment is how. do directly, plus the effect they can exert on the Taking the Helm larger system. Pursued vigorously and in concert with The mix of progress and failure to date makes clear one another, these six attributes will enable leading that the sustainable development agenda is in the companies to navigate the uncertain, challenging doldrums at precisely the moment when the need waters ahead, ensuring safe
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