Business & Society

Business & Society: Societal Trends and Corporate Leadership

Webinar: September 29, 2020 Introductions

Hosts Speakers

Perrine Bouhana Pia Heidenmark Cook Mzilla Mthenjane Director Chief Sustainability Officer Executive Head, Stakeholder Affairs GlobeScan Ingka Group (IKEA) Exxaro

Chris Coulter Francesca DeBiase Janice Lao Chief Executive Officer Chief Supply Chain & Sustainability Officer Director, Group Corporate Responsibility & GlobeScan McDonald’s Sustainability Hong Kong Shanghai Hotels

2 RADAR 2020 Methodology

• Representative online samples of approximately 1,000 adults per country in each of 27 countries

• Samples representative of online population, weighted to reflect general population census data

• Online surveying in June 2020

• Where historical data are shown, questions were asked using an in-person and telephone methodology before 2019.

4 Key Trends

1. The COVID-19 pandemic has had a more severe impact on the most vulnerable

2. Strong concern about climate change and the environment persists despite the current crisis

3. The crisis has brought increased public trust in science but also in business and government

4. The business case for sustainable and responsible business has strengthened

5. Strong desires for change: systemic and personal

5 The COVID-19 pandemic and subsequent recession has had a large impact on many, but so has climate change Extent Personally Affected by… , Average of 27 Countries, 2020

Greatly Moderately A little Not at all

The coronavirus/ 49 31 15 5 COVID-19 pandemic

The economic 40 36 18 6 recession

Climate change or 31 39 22 8 global warming

T2. How much are you personally affected by each of the following problems? 6 Great variability in impacts of great challenges across the world Extent Personally Affect By…, “Greatly,” Average of 27 Countries, 2020

The coronavirus/COVID-19 pandemic The economic recession Climate change or global warming

74 71 66 65 57 53 52 54 54 52 49 46 48 46 40 41 43 42 38 40 39 37 35 31 29 30 33 32 31 23 22 23 22 22 15 20 17 15 18 13 9 9

27-country Argentina Australia Brazil Canada China France Germany Hong Kong India Indonesia Italy Japan Kenya average

73 74 66 64 62 63 66 60 60 60 57 56 60 56 57 49 52 45 46 43 47 43 44 37 39 41 40 31 34 36 25 30 26 30 30 27 23 19 17 15 15 13

Mexico Nigeria Russia Saudi Singapore South South Spain Sweden Thailand Turkey United United Vietnam Arabia Africa Korea Kingdom States T2. How much are you personally affected by each of the following problems? 7 Climate change and natural resource depletion are seen to be almost as serious as the pandemic Seriousness of Global Problems, “Very Serious,” Average of 27 Countries, 2020

Coronavirus/COVID-19 68 Spread of human diseases 62 ▲ Climate change 60 ▲ Depletion of natural resources 60 Extreme poverty 57 Air pollution 56 ▼ Single-use plastic waste 55 ▼ Unemployment 53 Shortages of fresh water 52 ▼ Loss of biodiversity 52 Gap between rich and poor 48 State of the global economy 47 ▲ Online data security/privacy 44 ▲ Unequal treatment of women 40 ▲ Social/political division 38 Mental health problems 38

T1. For each of the following possible global problems, please indicate if you see it as a very serious, somewhat serious, not very 8 serious, or not at all serious problem Perceived Seriousness of Climate Change “Very Serious” and “Somewhat Serious,” Average of 16 Countries,* 2014–2020

100

90 89

Average of 16 countries 80

*Includes Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Kenya, Mexico, Nigeria, Russia, Spain, Turkey, UK, and USA Not asked in all countries in all years. Before 2019 this question was asked using an in-person and telephone methodology. T1. For each of the following possible global problems, please indicate if you see it as a very serious, 9 somewhat serious, not very serious, or not at all serious problem. – Climate change and global warming Perceived Seriousness of Climate Change “Very Serious” and “Somewhat Serious,” Increased Concern, Average of 16 Countries* vs Selected Countries, 2014–2020

100 India 93 90 89 Average of 16 86 countries China 80 81 USA

*Includes Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Kenya, Mexico, Nigeria, Russia, Spain, Turkey, UK, and USA Not asked in all countries in all years. Before 2019 this question was asked using an in-person and telephone methodology. T1. For each of the following possible global problems, please indicate if you see it as a very serious, 10 somewhat serious, not very serious, or not at all serious problem. – Climate change and global warming There is near universal agreement that society should respond to climate change with same urgency as it has responded to the current pandemic Society Should Respond to Climate Change with Same Urgency as COVID-19, “Strongly Agree” and “Somewhat Agree,” Average of 27 Countries and by Economic Development,* 2020

Strongly agree Somewhat agree Somewhat disagree Strongly disagree

Average of 27 countries 55 34 8 2

Non-OECD 59 33 6 1

OECD 51 35 10 4

*OECD countries include Australia, Canada, France, Germany, Italy, Japan, Mexico, South Korea, Spain, Sweden, Turkey, UK, USA; Non- OECD countries include Argentina, Brazil, China, Hong Kong, India, Indonesia, Kenya, Nigeria, Russia, Saudi Arabia, Singapore, South Africa, Thailand, Vietnam

T13. For each of the following statements, please indicate if you strongly agree, somewhat agree, somewhat disagree, or strongly disagree. – We as a society should respond to climate change with the same urgency as we have responded to the coronavirus/COVID-19 pandemic. 11 Majorities in most countries want to see a restructuring of the economy post-pandemic, but less so in Asia Priority for Post-COVID-19 Economic Recovery, Average of 27 Countries and by Country, 2020 Argentina 73 27 Mexico 72 28 Brazil 71 29 Kenya 71 29 Nigeria 69 31 Italy 67 33 Turkey 67 33 France 63 37 Getting economy back to Germany 63 37 normal as soon as South Africa 63 37 possible Spain 62 38 45 Canada 59 41 Sweden 57 43 55 UK 55 45 Restructuring economy so China 51 49 it deals better with Japan 51 49 challenges like inequality / Russia 50 50 climate change Australia 48 52 Saudi Arabia 48 52 USA 47 53 Singapore 44 56 Indonesia 43 57 India 42 58 Thailand 39 61 Hong Kong 39 61 Vietnam 38 62 South Korea 33 67

T14. In building the post-COVID-19 economic recovery, do you think the priority should be: 12 Global companies remain among the least trusted to operate in the best interest of society Trust in Institutions, Net Trust,* Average of 27 Countries, 2020

*“A lot of trust” and “Some trust” minus “Not much trust” and “No trust at all” **Includes Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Kenya, Mexico, Nigeria, Russia, South Korea, Spain, Turkey, UK, and USA. Not all countries were asked in all years. Before 2019 this question was asked using an in-person and telephone methodology. Question: Please indicate how much you trust each of the following institutions to operate in the best interest of our society. Would you say you have a 13 lot of trust, some trust, not much trust, or no trust at all in…? However, there has been an increase in trust in least-trusted institutions, including governments, global companies, and media Trust in Institutions, Net Trust,* Average of 17 Countries,** 2001–2020

100

80 80 Medical profession 72 Science/academic institutions 60 NGOs Fellow citizens 40 40 Large charitable foundations 34 32 28 UN 20 24 15 National companies 8 National government 0 -3 Global companies

-20 Press/media

*“A lot of trust” and “Some trust” minus “Not much trust” and “No trust at all” **Includes Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Kenya, Mexico, Nigeria, Russia, South Korea, Spain, Turkey, UK, and USA. Not all countries were asked in all years. Before 2019 this question was asked using an in-person and telephone methodology. 14 T3. Please indicate how much you trust each of the following institutions to operate in the best interest of our society. Would you say you have a lot of trust, some trust, not much trust, or no trust at all in…? Public expectations are highest for core operational areas Expectations of Companies, “Held Responsible For,” Net Expectations,* Average of 27 Countries, 2020

Ensuring products are safe/healthy 76 Providing fair wages to all employees 74 Treating employees fairly 73 Products/operations don't harm environment 71 Ensuring ingredients/materials do not harm nature 71 Providing full product transparency 70 Ensuring responsible supply chain 65 Providing good jobs/employment for people 65 Vision to provide goods/services to make world better 63 Reducing their impact on climate change 60 Providing good quality products/services at lowest price 56 Reducing human rights abuses 35 Supporting charities / community projects 35 Supporting progressive government policies 27 Solving social problems 24

*(4+5) minus (1+2) on a scale of 1 to 5, where 1 is “Not held responsible” and 5 is “Held completely responsible” T23. Below are things some people say should be part of the responsibilities of large companies. For each one, please indicate to what extent you think companies should be 15 held responsible. Expectations around core responsibilities are increasing Expectations of Companies, “Held Responsible For,” Net Expectations,* Average of 20 Countries,** 1999–2020

73 Safe/healthy products 72 70 Providing fair wages

64 Treating employees fairly 60 Don’t harm environment

Vision to make world better 50

*(4+5) minus (1+2) on a scale of 1 to 5, where 1 is “Not held responsible” and 5 is “Held completely responsible” **Includes Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Kenya, Mexico, Nigeria, Russia, South Korea, Spain, Turkey, UK, and USA. Not all countries were asked in all years. Before 2019 this question was asked using an in-person and telephone methodology. T23. Below are things some people say should be part of the responsibilities of large companies. For each one, please indicate to what extent you think 16 companies should be held responsible. Sector reputations vary widely but are increasing Performance of Sectors in Fulfilling Their Responsibilities to Society, Net Performance,* Average of 27 Countries, 2020

Healthcare 48 Agriculture/farming 41 Food 40 Technology/computer 37 Pharmaceutical 32 Consumer goods 25 Large retail 23 Social media 19 Banks / finance 18 Clothing/apparel 16 Media/entertainment 16 Home furnishings 14 Automobile 13 Payment and credit 6 Beer 5 Oil/petroleum -4 Spirit (alcohol)** -8 Mining -12 Tobacco -34

*“Among the very best” and “Above average” minus “Below average” and “Among the very worst” **Spirit (alcohol) not asked in Indonesia, Saudi Arabia, and Turkey T25. Please rate each of the following types of companies on how well they fulfil their responsibilities to society compared to other types of 17 companies… Half of people globally say they have used their buying power to make a difference on an issue they care about Actions Taken to Make a Difference on Issues, Average of 27 Countries, 2020

Changed my purchase choices 53

Voted in my local/national elections 49

Expressed my opinion online 42

Donated money or volunteered my time 38

Organized support in my community for 16 the issue

Protested publicly at events and rallies 10

None 12

T15. In the past year, have you done any of the following to make a difference on an economic, environmental, social, or political 18 issue that you care about? Please select all that apply. Consumers globally have become increasingly empowered Consumers Can Make a Difference in How Companies Behave, “Strongly Agree” and “Somewhat Agree,” Average of 19 Countries* and by Economic Development, 2002–2020

80 81 78 Non-OECD countries 76 Average of 17 countries 70 OECD countries

60 Younger consumers are more prone to strongly agree that they can make a difference in how 50 responsibly a company behaves.

*Includes Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Kenya, Mexico, Nigeria, Russia, South Korea, Spain, Turkey, UK, and USA. **OECD countries include Australia, Canada, France, Germany, Italy, Mexico, South Korea, Spain, Turkey, UK, and USA; Non-OECD countries include Argentina, Brazil, China, India, Indonesia, Kenya, Nigeria, and Russia. Not all countries were asked in all years. Before 2020 this question was asked using an in-person and telephone methodology. T13. For each of the following statements, please indicate if you strongly agree, somewhat agree, somewhat disagree, or strongly 19 disagree. – As a consumer, I can make a difference in how responsibly a company behaves. Consumers have become more interested in learning about ways companies are being socially/environmentally responsible Interested in Learning How Companies Are Socially/Environmentally Responsible, “Strongly Agree” and “Somewhat Agree,” Average of 19 Countries* and by Economic Development,** 2002–2020

100

90 91 Non-OECD countries 86 Average of 17 countries 82 OECD countries 80

Younger consumers, especially 70 those between 18 and 24, are also more interested in learning about what companies are doing 60 to be socially and environmentally responsible.

*Includes Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Kenya, Mexico, Nigeria, Russia, South Korea, Spain, Turkey, UK, and USA. **OECD countries include Australia, Canada, France, Germany, Italy, Mexico, South Korea, Spain, Turkey, UK, and USA; Non-OECD countries include Argentina, Brazil, China, India, Indonesia, Kenya, Nigeria, and Russia. Not all countries were asked in all years. Before 2020 this question was asked using an in-person and telephone methodology. T13. For each of the following statements, please indicate if you strongly agree, somewhat agree, somewhat disagree, or strongly disagree. 20 – I am very interested in learning more about the ways that some companies are trying to be more socially and environmentally responsible. Consumers have become more supportive of purposeful companies, particularly in emerging markets but also in OECD countries I Try to Support Companies/Brands Making a Positive Difference in Society, “Strongly Agree” and “Somewhat Agree,” Average of 17 Countries* and by Economic Development,** 2016 vs 2020

87 Average of 17 countries 2020 68 2016 90 Non-OECD countries 62

84 OECD countries 73

*Includes Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Kenya, Mexico, Nigeria, Russia, Spain, Turkey, UK, and USA. **OECD countries include Australia, Canada, France, Germany, Mexico, South Korea, Spain, Turkey, UK, and USA; Non-OECD countries include Argentina, Brazil, China, India, Indonesia, Kenya, Nigeria, and Russia. In 2016 this question was asked using an in-person and telephone methodology. T13. For each of the following statements, please indicate if you strongly agree, somewhat agree, somewhat disagree, or strongly disagree. – I try to support companies and brands that have a purpose of making a positive difference in society through their products, services and 21 operations. Shareholders increasingly believe that purpose-driven companies are good investments Shareholder Views, “Strongly Agree” and “Somewhat Agree,” Subsample: Shareholders, Average of 12 Countries,* 2016 vs 2020

2020 Companies that have a purpose of making a positive 82 difference in society are more profitable 68 2016

*Includes Brazil, Germany, India, Indonesia, Kenya, Mexico, Nigeria, Russia, South Korea, Spain, UK, and USA Before 2020 this question was asked using an in-person and telephone methodology. T22. Please indicate if you strongly agree, somewhat agree, somewhat disagree, or strongly disagree with each of the following statements. 22 Panel Discussion

Hosts Speakers

Perrine Bouhana Pia Heidenmark Cook Mzilla Mthenjane Director Chief Sustainability Officer Executive Head, Stakeholder Affairs GlobeScan Ingka Group (IKEA) Exxaro