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SCALE-UP , SPEED UP: I0 STRATEGIES TO A CCELERATE THE IMPACT OF YOUR SUSTAINABILITY BUSINESS DECEMBER 2013

Scale-Up, Speed Up: 10 Strategies to Accelerate the Impact of your Sustainability Business

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This paper offers a solid framework to help leaders of big and small businesses alike to break through the obstacles to building a thriving, growing sustainability enterprise.

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SCALE-UP,

SPEED UP:

I0 STRATEGIES TO ACCELERATE THE IMPACT

OF YOUR SUSTAINABILITY BUSINESS

DECEMBER 2013

The Zethof Consulting Group

Scale-Up, Speed Up: 10 Strategies to Accelerate the Impact of your Sustainabiltiy Business

2

Table of Contents Introduction ........................................................................................................................................................................ 3

What We Mean by Sustainability ................................................................................................................................... 4

Pathways To Scale ............................................................................................................................................................. 5

Barriers To Scale ............................................................................................................................................................... 6

Barriers To Scale for Big Business ............................................................................................................................ 6

Barriers To Scale for Small Business ........................................................................................................................ 9

Creating New Ecosystems............................................................................................................................................... 9

CASE STUDY – Change System Conditions to Encourage Change .......................................................... 11

CASE STUDY – Drive a Solution to Force Change....................................................................................... 12

Scaling Strategies .............................................................................................................................................................. 12

Scaling Strategies for Big Business ........................................................................................................................... 13

Organizational Focus – Strategies to Shift the Organization ....................................................................... 13

Ecosystem Focus – Strategies to Drive Collaborative Solutions ................................................................ 16

Scaling Strategies for Small Business ....................................................................................................................... 21

Organizational Focus – Strategies to Build a Strong, Fit-for-Purpose Team ............................................ 21

Ecosystem Focus – Strategies to Forge Strategic Relationships .................................................................. 22

Summary of Scaling Strategies .................................................................................................................................. 22

Change Strategy ............................................................................................................................................................... 23

Conclusion ......................................................................................................................................................................... 24

Endnotes ............................................................................................................................................................................ 25

The Zethof Consulting Group

Scale-Up, Speed Up: 10 Strategies to Accelerate the Impact of your Sustainabiltiy Business

3

Introduction Sustainability business champions encounter obstacles to the growth and development of their

enterprise that “old economy” businesses do not face.

Growing a sustainable enterprise is exciting – it is a world of innovation and opportunity. At the

same time, the gravitational pull of short-termism, fossilized mind-sets, and institutional systems

designed for a by-gone industrial age represent significant obstacles to growth.

All around we see promising sustainability projects yet too often exciting new initiatives hit a

ceiling that slows or blocks further progress. The findings

of the UN Global Compact CEO Survey on Sustainability

2013 backs up this observation.

The CEO Survey found that 93 percent of CEOs regard

sustainability as key to success. 1 Yet, the ratio of CEOs

who perceive sustainability as very important to their

business has fallen since the previous survey in 2010. In

2010, 54 percent of CEOs said sustainability would be

“very important” to the future success of their business. In

2013, this figure fell to 45 percent. Businesses, CEOs in the

survey believe, are not leading on sustainability in the way

that was predicted three years ago. They have reached a plateau in their efforts.

The challenge: how can you surmount the obstacles to scale that you encounter so you can break

through them and build a thriving, growing sustainability enterprise? What are the strategies that

have been shown to work?

Ultimately, how can a business leader “mainstream” sustainability

so that other actors in the economy buy into the vision and act in

concert to create the conditions necessary for wide scale

adoption?

In this whitepaper, we offer a solid framework to help leaders of

big and small businesses alike grapple with this challenge.

Our framework provides a menu of proven strategies – strategies

that can help break through the inevitable obstacles that arise as you grow your sustainability

enterprise.

Business champions of

sustainability encounter

obstacles to growth and

development not typically

experienced by “old

economy” businesses.

How can a sustainability

champion overcome the

obstacles of the old

order and scale up

innovative solutions at

an accelerated pace?

The Zethof Consulting Group

Scale-Up, Speed Up: 10 Strategies to Accelerate the Impact of your Sustainabiltiy Business

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What We Mean by Sustainability Sustainability is a loaded word that can mean

virtually anything to anybody. There is no

universally accepted definition.

Martin Melaver, CEO of Melaver Inc., has a

useful definition. He says that the Latin root

perhaps best explains “sustainable” as

something that feeds us or nurtures us. He

notes that there are critical metaphysical,

spiritual, and physical connotations to the

term. A sustainable business provides

sustenance for life and living. It is about

being part of what the naturalist Aldo

Leopold once described as a “land-

community” ethic. 2

Business leaders in this area work towards

sustainability in three broad ways: via

footprint, handprint, and blueprint. 3 The

place to start for any business is to minimize

its own environmental footprint on the

planet by reducing emissions and being

energy and resource efficient.

The second way is to assess and optimize

the business handprint in terms of the value

proposition and whether products and

services make a net positive contribution for

a more livable and just world.

And the third way is for businesses to

engage with the broader community to

create a blueprint and take action for

healthier communities and better

institutional systems. Experts in the field

view collaboration with other actors in the

system as the most promising way to align

system parameters (e.g. market incentives,

government policies, regulations, etc.) that

enable break through performance.

Leaders of sustainability businesses strive for

a world in which economic, social,

environmental and cultural aspirations are

considered not as isolated goals, but as

interdependent parts of a single system.4 This definition aligns with the “triple bottom

line” concept.

Ultimately, sustainability businesses are

regenerative; they restore, replenish, and

rejuvenate. A regenerative enterprise

provides more services to the human and

natural world than it takes out.5

Measuring regenerative benefits is difficult

but Michael Dell of Dell Computer wants his

company to try. He has announced a

goal of “measuring not only the

sustainable and social initiatives Dell can

execute, but also the ripple effect of

True sustainability is part

of core strategy, it’s not

an “add on,” and people

can detect the difference.

The Zethof Consulting Group

Scale-Up, Speed Up: 10 Strategies to Accelerate the Impact of your Sustainabiltiy Business

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how our technology enables others to

benefit the planet.” Over the next seven

years, Dell seeks to generate ten times

more benefit through its technology than it

takes to make and use it in the first place.6

This perspective of the business meets the

sustainability test.

Pathways To Scale “Scale-up, speed up” in the context of this paper means doing much more of something that

contributes to sustainability and doing so at a faster rate.

What this looks like will be different for every company. It could mean moving to a zero waste

operation or achieving widespread adoption of a clean technology.

Or it could mean successfully working with politicians to create incentives for adoption of

renewable energies.

The pathways to scale from the perspective of the global economy can be viewed as a

progression from the Eureka moment of invention followed by experimentation, the development

of new business models, the creation of new ecosystems of activity, and finally a flip to a new

economy when the tipping point is reached7:

Figure 1: Pathways to Scale

In this model and given our current

institutional arrangements, there is a point

at which it becomes more difficult for a

sustainability enterprise to stay on a

The economic

system flips to a more

sustainable state

supported by culture

change.

Economy

Critical mass and

partnerships evolve new

markets and institutional

arrangements.

Ecosystem

Investors and

managers build new

business models

creating new forms of

value.

Entrepreneur

Innovators and entrepreneurs

begin to experiment, a period of trial

and error.

Experiment

Opportunity is revealed

via the growing

dysfunction of the

existing order.

Eureka!

The Zethof Consulting Group

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scale-up trajectory without the cooperation

and alignment of other actors in the

economy.

This threshold is at stage 4, the ecosystem

stage. At stages 4 and 5, it is important that

external factors such as market signals,

regulations, and the policy environment

support the growth of a particular

sustainability solution. In many cases, these

supportive conditions do not exist and so

growth becomes stalled.

Many businesses have embarked on the

sustainability journey; some are further

along than others. The majority of

businesses on the journey are active

somewhere in the first three stages of

implementing sustainability, as indicated by a

recent survey by Deloitte and Volans.8

Such enterprises serve as laboratories of

sustainable business practices and provide

exemplars for us to study. Thousands of

companies across all sectors have published

sustainability reports.9 But such practices

and projects are only part of the solution.

We should also learn from the business

leaders who are successfully driving the

transformations needed to overhaul their

companies and the ecosystems in which they

operate so they can really scale-up the

sustainability aspects of their businesses.

Examples of leading companies on this

journey are Unilever, Interface Global,

and Patagonia.

These companies understand that existing

ecosystems and economies are replete with

barriers to a business trying to scale a

sustainable solution. By making changes in

ecosystems and economies, they are able to

reach tipping points that position their

sustainable products and services for takeoff

and widespread adoption.

For example, when electrical systems were

modernized for light bulbs, if you were in

the business of light bulbs, your sales took

off. But if you were selling kerosene lamps,

your sales plummeted. So pushing for

change in an ecosystem to tipping points is

often necessary to clear the way for new

sustainability solutions.

Barriers To Scale Business is no stranger to the scaling challenge. After all, the quest for business growth is

constant. But rapid growth from a sustainability perspective is particularly difficult. Big businesses

trying to make the shift must deal with the legacies and complications of what already exists,

whereas small to medium-sized businesses (i.e. SMEs) have to navigate the tricky shoals of starting

up a new enterprise. In both cases, once a sustainability business has achieved some traction, it

encounters obstacles to growth within its ecosystem and economy.

Barriers To Scale for Big Business The UN Global Compact CEO Survey on

Sustainability 2013 found that even as CEOs

are making progress in embedding

sustainability throughout their business, it is

becoming increasingly apparent that they

feel constrained by factors that hinder more

progress. Figure 2 below sets out the most

significant barriers identified by the CEOs,

which keeps them from implementing an

integrated and strategic company-wide

approach to environmental, social and

corporate governance issues.10

The Zethof Consulting Group

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Figure 2: Critical Barriers for CEOs, 2013

The most significant barriers were found to

be the lack of financial resources, competing

strategic priorities, and the lack of a clear

link to business value.

It is perhaps unsurprising that lack of

financial resources and competing priorities

are the top constraints. New innovations

often have to compete for resources against

products and services with an established

revenue stream and entrenched product

champions. People tend to protect their turf

and are often unwilling to share resources.

Poor economic conditions and competition

for resources only exacerbate this problem.

Moreover, large companies are prone to

miss implementing disruptive technologies

because they are tied to their existing

offerings (known as the innovator’s

dilemma). Many struggle to innovate and

build new businesses. They often opt to buy

smaller companies with promising

technologies but then they have the

challenge of merging divergent cultures.

Large companies also tend to overlook what

appear to be small markets because they

need big markets to satisfy their short-term

growth objectives. Shareholders and

financial markets put pressure on CEOs for

quarterly profit growth. Short-termism

sabotages sustainability efforts made for the

long-term.

Three other constraints highlighted by the

CEOs point to the difficulty of embedding

sustainability in large organizations. These

constraints are extending and implementing

strategy across a corporation’s supply

chain, its subsidiaries, and its business

functions. As businesses grow they

become more complex and

8%

8%

11%

13%

22%

22%

27%

30%

33%

37%

44%

51%

0% 10% 20% 30% 40% 50% 60%

Other

Lack of support from top management

None of the above

Extending strategy throughout subsidiaries

Lack of recognition from investors

Lack of knowledge

Implementing strategy across business functions

Difficulty due to operating environment

Extending strategy throughout the supply chain

No clear link to business value

Competing strategic priorities

Lack of financial resources

Percentage of repondents identifying each factor among their top three choices.

CEOs in the survey saw

one constraint intensifying

more than any other over

the past decade

The Zethof Consulting Group

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bureaucratic. Change becomes more difficult

and takes time because of the number of

people, functions and systems involved.

Some people resist change

because they perceive more

to lose and less to gain from

a big shift. Paradoxically, not

changing is the bigger risk in

terms of business continuity.

CEOs in the survey saw one

constraint intensifying more

than any other over the past

decade: the lack of a link

between sustainability and business value

drivers. In 2007, just 18 percent reported a

failure to trace such a link and this year

more than a third - 37 percent - reported

this factor as deterring them from taking

faster action on sustainability.

Despite the search for new

conceptions of value -

“shared value” for example -

CEOs in the survey were

clear that action must be

justified against traditional

measures of success. Yet,

the sustainability leaders

have envisioned a new kind

of dashboard that drives

them to excel according to

traditional business metrics, as well as by

sustainability metrics aimed at solving global

challenges. They follow both compasses at

the same time:

“An examination of survey responses from the companies covered by this year’s study

and by Accenture’s long-term High-Performance Business research program produces

the early indications of a potentially striking conclusion. CEOs of companies that combine

externally-recognized sustainability leadership with market-leading business performance,

as measured by traditional metrics including revenue growth, profitability and

shareholder returns, approach sustainability in markedly different ways to those who are

failing to achieve this distinction – with different motivations, different influencers and

different areas prioritized for investment, innovation and action. Leading CEOs are

already uncovering strategies for sustainability that allow them to deliver both value

creation for their companies and impact on global challenges.”11

The nature of the top constraints

acknowledged by the CEOs suggests that

the vast majority of businesses are still in the

early stages of the sustainability journey and

they have, in effect, become stuck. Some of

these CEOs may have a bifurcated view of

sustainability, a view that sees sustainability

as something separate from the core

business. The sustainability leaders don’t

look at it this way – they integrate

sustainability into the core of their business.

Accenture has found that only a small

cluster of business leaders have an

integrated perspective of business and

sustainability that gives them the rationale

for investing in sustainability. These leaders

are further along in their sustainability

journey. This gives them the laser focus that

enables them to advocate and collaborate

effectively with external system actors on

transforming ecosystems and economies.

The Zethof Consulting Group

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Barriers To Scale for Small Business The challenge for SMEs is more apt to be the successful commercialization of a new technology

or product, which can be a treacherous process (see Figure 3). SMEs also share some of the

challenges facing big business. Taking a technology from concept to market requires skill,

resources and a good deal of luck.

An effective commercialization process has six stages each of which has technical, marketing, and

business issues to address. At any step, unforeseen issues can arise that can derail the technology

if the process is not well managed.

Figure 3: Technology Commercialization Model12

A new innovation in any industry has the added challenge of displacing the established paradigm.

For example, take Method Cleaning Products, which produces nontoxic, biodegradable natural

cleaning supplies with a focus on minimalist product design. Method has gained recognition for its

commitment to sustainability, including taking innovative steps to measure and reduce its carbon

footprint. In 2006, Inc. Magazine named Method the 7th fastest-growing private company in the

United States. For all of its success, when its co-founder spoke at the Conscious Capitalism 2013

Conference in San Francisco, he good-naturedly urged delegates to buy the company’s laundry

detergent because “it’s so hard to get people to switch their laundry detergent.”13 This is just one

example of how difficult it can be to displace an established brand with a new more sustainable

one.

Creating New Ecosystems CEOs that are implementing sustainability

will eventually come up against constraints

in their operating environment that frustrate

efforts to scale their solution into the

marketplace. This is the stage where the

CEO feels friction between his/her

sustainability solution and the company’s

ecosystem.

An ecosystem, a concept borrowed

from biology, encompasses the players

in the system, the complex interactions

between them, and the impact of the

The Zethof Consulting Group

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environmental conditions on the system.

Acting together, the system players create

the regulatory, political, cultural and other

system conditions that either support or

work against a sustainability solution.

To date, national governments have

generally not taken a strong leadership role

in shaping ecosystems and economies in a

sustainable direction. For example, a

GlobeScan/SustainAbility survey of

sustainability experts from 117 countries

found that a lack of will by political leaders

has been the main barrier to progress in

implementing the sustainability agenda

formulated at the 1992 Rio Conference on

Sustainable Development14.

In the same survey, most sustainability

experts said the best way for companies to

contribute to sustainability is technological

development and innovation (See Figure

4).15 The second best way is to work with

governments to establish a regulatory

environment that supports sustainable

development. Also rated highly is

participating in multi-sectoral partnerships.

These collaborative actions are needed to

change ecosystems and cultivate the

conditions for large-scale change.

Figure 4: Best Way for Companies to Contribute to Sustainability, 2012

A small group of progressive business leaders are not waiting for governments to lead on

sustainability. These leaders are driving the agenda and inviting the players to the table where

needed to create the conditions for change. They are committed to using their companies’

resources, infrastructure, and reach for delivering solutions to the marketplace while producing

superior returns for their investors and stakeholders.

The business community has formed a

number of alliances and coalitions to push

for ecosystem changes. Take the

example of The B Team: Recognizing

8%

26%

28%

28%

29%

33%

41%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Engaging employees on sustainability initiatives

Mobilizing suppliers on sustainability initiatives

Participating in multi-sectoral partnerships

Influencing customers toward positive behaviour

change

Improving internal sustainability performance

Working with govts. to establish regulations that

support sustainable development

Contributing technological development and

innovation

As Stated by Sustainability Experts

The Zethof Consulting Group

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the need to put some corporate muscle

behind the “people, planet, profit” mission,

Sir Richard Branson of the Virgin Group and

Jochen Zeitz, a former Puma CEO, have

spearheaded the formation of The B Team,

a new global not-for-profit organization. The

group has formulated a Plan B (Plan A is the

pursuit of short-term profit at the exclusion

of everything else) that will initially tackle

challenges in leadership values, triple bottom

line accountability, and compensation

incentives.16

The B Team and other business initiatives

like it aim to drive systemic change. As

Arianna Huffington of The Huffington Post

and a B Team member put it: “At a time

when so many governments are gridlocked

and paralyzed and unable or unwilling to

pursue big, bold, far-sighted goals, the

private sector has a responsibility and a

unique opportunity to become a catalyst for

fundamental change.”17

A new breed of business leaders is emerging calling for

“market revolutions.” They are not happy simply

patching dysfunctional systems ... They want to create

new ones that work in different ways18.

At least two pathways exist for making systemic change: one is to strategically change various

system conditions to support and encourage an intended change. The other is to drive a solution

that is so successful that system players are compelled to change conditions and in so doing

reinforce its spread.19 Below are example case studies of the two approaches to changing

ecosystems.

CASE STUDY – Change System Conditions to Encourage Change

An example of strategically changing various system conditions to support and

encourage an intended change is the solid waste diversion strategies of the

Capital Regional District (CRD), a local government on Vancouver Island. While

the CRD is not a business, business can learn from its experience. Faced with

limited physical capacity for landfilling solid waste, the CRD and its collaborators

implemented a range of strategies based on reduce, reuse and recycling (3Rs) for

diverting waste materials from the Hartland Landfill near Victoria. The CRD

worked with the Provincial Government, the general public, member municipal

governments and industry to create the system conditions and infrastructure

necessary for program success. By strategically addressing each type of waste

material, the CRD in conjunction with its partners has diverted 48 percent (2012)

of the base-line waste stream while creating new jobs and business activities in

the region.

The Zethof Consulting Group

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CASE STUDY – Drive a Solution to Force Change

The microbrewery sector in British Columbia is an example of driving a solution

that is starting to compel system players to change the environmental conditions.

Micro brewing is arguably a sustainability business when done responsibly. Sales

have been growing at 25 percent per year to the point where craft beer now

represents 20 percent of all beer sales in the province despite historically

restrictive liquor laws.20 The sector has grown in spite of government policies not

because of it, driven by the passion and desire of entrepreneurs. But the

Provincial and local governments have begun to recognize the sector’s benefits

making the rules somewhat more accommodative. For example, this year the

Provincial Government ruled to allow on-site consumption of craft beer and

more favourable mark-up rates (i.e. taxes), although the rates apply to relatively

large brewers too.21 Nonetheless, the beer market in the province is

transforming from a few large-volume producers with centralized production and

far-flung distribution systems to many small-volume craft brewers with

neighbourhood establishments.

Sustainability business leaders eventually have to decide whether they have the will to drive

transformative change in their ecosystem. The route is challenging but, as illustrated by the

examples above, not impossible. It requires a shared vision and a commitment to execution by

the system players. The players need to acknowledge the need for change and then collaborate

for solutions.

Scaling Strategies The preceding section addressed the overall

challenge of changing ecosystems so they

are supportive of sustainability. Without

supportive environmental conditions, it may

be impossible to achieve scale.

This section presents key strategies for

accelerating the impact of your sustainability

business. The strategies fall into two

categories: strategies for re-shaping your

organization and strategies for interacting

with other actors in your ecosystem.

Sustainability champions drive activities in

both categories. Reshaping your

organization ensures you have something

that customers value and that you are able

to scale. Whereas interacting with other

actors is needed to remove systemic

barriers to scale.

Imagine the scaling challenge from two

different perspectives: from the perspective

of a large company or a “keystone22“

company which dominates a prevailing

market but wishes to shift into the

sustainability space; and from the

perspective of the SME that aims to displace

the dominant, but unsustainable solution,

with a more sustainable solution.

Each business type has a different challenge

and therefore a different set of strategies,

although there is overlap. Both business

types will have to attend to internal

organizational issues, as well as to its

role in changing the ecosystem.

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Scaling Strategies for Big Business Big business strategies centre on becoming focused on sustainability, on cracking the inertia

surrounding legacy products and processes, and on collaborating with other players in the

ecosystem to co-create the conditions for change.

Organizational Focus – Strategies to Shift the Organization

1. Have Higher Order Purpose – Who

you are and what you stand for as a

business has become the most significant

differentiator of performance.23 There is

a growing segment of the population

that looks beyond the product or

service to assess the values and

behaviours of the business itself. They

are attracted to companies with a

purpose beyond maximizing profits.

Take the case of millennials who are

emerging as the world’s most dominant

consumer group. There are 1.7 billion

millennials globally with 61 percent living

in Asia.24 In the US alone, they are

projected to spend more than $2.45

trillion annually by 2015.25

There are data indicating that this

demographic group is particularly

interested in sustainability. For example,

the World Economic Forum cites a

survey finding that 84 percent of global

millennials believe it is their generation’s

duty to improve the world (90 percent

in China).26 Beyond product affordability

and quality, millennials look for brand

characteristics that relate to

sustainability. These include trust (78%),

environmental friendliness (71%), ethical

practices (71%), and alignment with a

cause or social issue (61%).27

These data indicate that the potential

influence of sustainability on millennial

shopping behaviour and choices is huge.

The choices of these consumers will

almost certainly be driven by necessity

as climate change and other

sustainability challenges intensify.28

To be credible in millennial eyes,

companies need to know and execute

their higher order purpose in terms of

value to society. Every business can

define a higher order purpose. For

example, Patagonia sells outdoor

clothing and gear but its whole approach

revolves around sustainability. Casey

Sheahan, CEO, describes Patagonia’s

business model as “purpose driven.”29

As he puts it, “we are not about selling

stuff, but about solving problems.” The

company’s philosophy likely helps to

explain sales growth of 30 percent from

2008 to 2013 despite the economic

recession.30

2. Lead Differently – Leaders best suited

for sustainability organizations with

global impact are “servant leaders.”

They focus on human relationships

both inside the organization and

externally with stakeholders. No

Leaders best suited for

sustainability organizations

with global impact are

“servant leaders.”

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one leader has the personal capacity to

develop and deliver the solutions

needed in a complex world. They work

through others to achieve a common

mission. They create cultures based on

love, not fear. As Casey Sheahan of

Patagonia put it: “We are a tribe of

caring people galvanized around a

purpose.31”

By nurturing a positive culture, a leader

can more easily scale the enterprise

because employees take initiative and

make choices that are in alignment with

the business vision. These leaders

understand system dynamics. They are

excellent facilitators and

communicators, necessary skills for

building bridges within the organization

and with other players in the ecosystem.

They can collaborate across for-profit

and not-for-profit boundaries.

3. Eliminate Environmental Footprint

– Initiatives to reduce and eliminate a

company’s environmental footprint are

fundamental. Life cycle analysis can

identify opportunities to reduce

environmental impacts associated with

all the stages of a product's life from

cradle-to-cradle (i.e., from raw material

extraction through materials processing,

manufacture, distribution, use, repair

and maintenance, and recycling/reuse).

Ecodesign can consider all of the

environmental aspects of a new product

or service at the early design stage

before the environmental impacts of a

product are irretrievably locked in.

Consider the supply chain too. It has

been found that typically 50 percent to

70 percent of business value and carbon

emissions is generated in the supply

chain,32 so companies positioning for

scale would do well to work for

sustainability across their supply chains.

Successes achieved by one company can

be replicated by other companies. We

have seen how a brand can be harmed

by not taking into account the

behaviours and policies of suppliers, the

Bangladesh garment factory fire and

deaths being a recent and tragic

example.

4. Satisfy People’s Deepest Yearnings

– New research by Havas Media Group,

which surveyed 134,000 people around

the world, shows that consumers would

not care if 73 percent of brands

disappeared.33 At the same time,

consumers believe brands have the

ability to play a role in improving their

quality of life and wellbeing (58 percent

in America agreed).34

As Amy du Pon, head of strategic

planning at Havas puts it: “In an age of

transparency and empowerment, brands

are not meeting people's requirements.

People expect large companies to be

involved in social problems and their

quality of life but companies are not

delivering on this new social contract.”35

How can business leaders reconcile

these findings and have any hope of

scaling their offerings? Not surprisingly,

a recent Accenture consumer survey

found that only 26 percent of executives

said they have a complete

understanding of how consumer

behaviour is changing and 40

percent said the “inherent

Scaling a business before

minimizing its environmental

footprint would be counter-

productive.

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unpredictability of consumers is the

main barrier to understanding them

better.”36

Rene Lertzman, a psychosocial

researcher, sheds more light on this

issue:

Too many companies are

trying to change consumer

behaviour through persuasion,

rather than trying to get to the

bottom of the confusion

consumers face. How do we

get people to change behaviour

is the wrong question. More

important is how we can

understand better and access

levels of people's dilemmas

and contradictions.37

Many companies have reached maximum

efficiency but are struggling to move

towards value creation.38

Richard Gillies, Director of

Environmental and Social Sustainability,

Marks and Spencer, has a constructive

view: “Maybe business isn’t giving

consumers what they really want.”39

After all, another survey found that one

third of Americans are consumer

activists, either boycotting or

“joycotting” (the opposite of boycotting)

products or services because of a

company’s social or political values, so

we know they care.40

The key is to listen to people far more

carefully and understand market

requirements far more deeply. When

people feel they are being heard, they

can be more honest about their desires

and then business will have a better

basis for delivering a value proposition

that can scale.

5. Redesign Business Models –

Innovation of a business model can

unlock opportunities to create more

value for customers and stakeholders

while solving multiple sustainability

challenges. Unlocking more “shared”

value can give billions of disadvantaged

people a way of satisfying their needs

through the market. This strategy can be

the catalyst for scaling an innovative

solution that cannot be delivered by

conventional business models.

Example - Transform a

Product into a Service: A

growing number of

companies have discovered

increased customer loyalty

and superior financial

returns by using a

continuous customer service

model. With this business

model, a company provides

an ongoing service for a fee

rather than makes a one-off

sale. An example is Interface

Global, which designs,

produces and sells

environmentally conscious

modular carpeting. Interface

enters into service contracts

promising that its

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floorcovering will continue

to meet an agreed upon

quality standard. The

company replaces only the

carpet tiles that are worn

out thus minimizing the

environmental impact.

Interface’s Mission Zero is a

promise to eliminate any

negative impact the company

has on the environment by

the year 2020.

Example – Circular

Economies: Vertical farms

with closed loop systems

need less energy for

transportation, emit less

carbon, use less water, and

have more frequent crop

turns than conventional

farms making them a

compelling business

proposition. FarmedHere

uses aquaponics and

aeroponics to grow mostly

leafy green crops under

controlled conditions

indoors. They achieve up to

22 crop turns a year

compared to 2 or 3 crop

turns for conventional farms.

Their Chicago plant has a

closed-loop system

circulating wastewater from

fish tanks to 3000 square

feet of growing beds and

back again. The company

also plans to anaerobically

digest root waste to

generate power for the

growing lamps making the

process more energy

efficient. Total production

from vertical farming is still

small but there is huge

potential and business

justification to scale it up,

especially considering that

70 percent of the global

population is expected to be

living in cities by 2050.41

Example - Sharing

Business Model: Zipcar

applied digital technologies

so people can access a car at

the exact moment they need

it, without the burden and

expense of owning it

outright. The overall

environmental footprint of

this approach is much

smaller than individual car

ownership. Zipcar was so

successful that Avis bought

the company in 2013 and

will likely scale it up.

Ecosystem Focus – Strategies to Drive Collaborative Solutions

6. Create Shared Value - Capitalism is

getting a bad rap these days. But where

it’s practiced with positive values, it has

proven to be the most

effective vehicle for human

collaboration ever invented.

As Professor Edward

Freeman of the University

of Virginia puts it:

Capitalism is how we

cooperate together to create value no

one of us could do alone.”42

A growing number of people

are expecting more of

capitalism. They expect

business to create “shared

value,” which is a more

constructive and endearing

role because all

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stakeholders benefit from the business

activities. No single stakeholder group

gains at the expense of others. By not

making trade-offs between stakeholders,

it forces companies to be more creative

which leads to breakthrough

performance.

While maximizing “shared value” takes a

company closer to sustainability than

maximizing “shareholder value” (which

is a profit maximizing goal), some argue

that it is still a limiting concept. A more

progressive concept is transformation of

a company’s value proposition. As Paul

Polman of Unilever puts it: “The

concept of shared value is good but I

think it is a post-rationalization of not

getting in trouble with society”.43

Even stockholders are pushing

companies to look beyond just the

stockholder’s perspective, some because

they believe it’s the right thing to do and

others because they believe it is a wise

business decision for the long run. A

recent study looked at the financial

returns of firms that align the interests

of all stakeholders in such a way that no

single stakeholder group gains at the

expense of others. They found that the

returns of these “firms of endearment”

were over eight times greater than the

returns of the Standard & Poor’s 500

over a ten year period ending June 30,

2006.44 By not trading off different

stakeholder interests and by striving for

win-win-win solutions, a firm invokes

the power of imagination thus

stimulating more innovation and value

creation and the potential for scale.

7. Form Partnerships – Some of the

global challenges that represent great

business opportunities can only be

surmounted through multi-sectoral

partnerships and collaborations that

include governments.45 As governments

and NGOs start to think more in value

terms and recognize their own

limitations, their interest in collaborating

with businesses will grow. A key risk of

any collaboration is that no one

commits to driving and leading it.

Business leaders will have to gauge their

own willingness to drive collaboration

or risk losing the opportunity

altogether. There are many forms of

partnerships as shown in Figure 5.

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Figure 5: Examples of Partnership46:

TYPE OF

PARTNERSHIP

DESCRIPTION EXAMPLES

Company/Company Where companies that

otherwise compete against

each other collaborate to

access expertise and

resources and share risks.

This is also known as “co-

opetition.”

Ford and Toyota to

develop advanced

hybrid system for light

trucks

US Postal Service, UPS

and FedEx to reduce

carbon footprint

The Green Grid for IT

server farms

Company/NGO This has been the most

common type of

collaboration. It has been

driven by corporate social

responsibility (CSR).

Coca-Cola and World

Wildlife Federation

Starbucks and Conservation

International

Home Depot and

Habitat for Humanity

Single Industry Where public, private and

NGO actors from a single

industry partner to address

common issues. This type

of collaboration is

becoming more common.

Sustainable Apparel

Coalition

Electronic Industry Citizenship Coalition

The Mining Association

of Canada, Towards

Sustainable Mining

Multi-industry Multi-actor partnerships

form across industry

boundaries to tackle a

common issue.

The Plant PET

Technology

Collaborative

Forest Stewardship Council

United States Climate

Action Partnership

Sustainable Packaging Coalition

In some cases, it makes sense for

companies to establish a joint venture to

introduce a product or service into the

marketplace. In this scenario, the

partners operate as a coordinated

network with each company

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focusing on its unique strengths. The

partners move technologies and roles to

those best able to implement them. For

example, a large incumbent business

may link with a smaller company that

has a disruptive technology. Take the

case of Waste Management

Company. After failing to introduce a

recycling program of its own, Waste

Management partnered with

Recyclebank to implement a highly

successful recycling program in the U.S.

The combination of Waste

Management’s curbside collection

infrastructure, the largest in America,

with Recyclebank’s online education and

behavior change platform, accelerated

the growth of both companies. After

only one year together, 22 million

residential customers gained access to

the Recyclebank rewards-for-recycling

program and 179 million pounds of

material was recycled.47

Collaboration continues to be viewed as one of

the few models that could catalyze solutions

to the sustainable development challenges that

we face at the speed and scale we need.48

8. Pursue Open Innovation – In a world

where the challenges are complex and

knowledge is widely distributed, making

the boundary between a company and

its operating environment more

permeable can enrich the innovation

process and accelerate progress. By

opening up their “jewel box” of ideas

and technologies,

partners use their

collective intelligence

and knowledge to

develop sustainability

solutions with wide

market appeal.

They can build trust

quickly if they have

shared values and

goals and they

communicate openly.

Take the case of AkzoNobel, a large

chemical company. It has thirty supplier

agreements across its value chain

focused on getting more value from

fewer resources.49 The company found

that progress accelerated when it shifted

from a transactional, compliance-driven

approach with its vendors to a

collaborative approach that aims to

rethink business processes from end to

end.

9. Create Circular Economies – In a

circular economy, products do not

quickly become waste,

but are reused to

extract their

maximum value before

safely and productively

returning to the

biosphere.

Business leaders can

collaborate with each

other to create

circular economies

that generate more

value from each unit of resources used

while boosting growth in a

sustainable direction. With this

approach, one company’s “waste” is

another company’s feedstock.

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Large-scale examples exist today,

including anaerobic digestion of

household waste and apparel recovery.

One study estimates the full potential of

the circular economy in consumer

goods, for example, to be as much as

$700 billion (US) in global materials

savings alone.50 Large enterprises have

the power to facilitate the redesign of

entire value chains into circular

economies. Over time, the market is

likely to systematically reward

companies with an edge in circular

business practices.51

10. Find Like-Minded Investors –

Sustainability companies, big or small,

need to find like-minded investors who

can provide the “patient capital” that is

needed to introduce transformative

business models. Fortunately, a growing

class of investors looks for companies

that create long-term value.

Canada’s Social Investment Organization

reports that responsible investment (RI)

assets in Canada continue to climb,

showing growth in virtually every major

market segment and outpacing growth

of total assets under management.

Assets managed under sustainable and

responsible investment guidelines in

Canada grew by 16 percent between

June 30, 2010 and December 31, 2011.

By comparison, total assets under

management grew by 9 percent in the

same time period. RI assets now

account for 20 percent of total assets

under management in the financial

industry, representing $600.9 billion.

This investment trend bodes well for

businesses that need capital to scale

sustainability.52

An example of a socially responsible

investment management company is

Generation Investment

Management LLP (GIM), a company

co-founded by Al Gore, former Vice

President of the U.S. At a recent

conference, GIM surveyed a group of

Chief Investment Officers (CIOs) on

their investment planning horizons. The

company found that only 20 percent of

CIOs said that their investment-planning

horizon was one year or more and 55

percent said it was for a calendar

quarter or less, a point of view that

undermines C-Suite attempts to solve

society’s most difficult issues.53 More

consideration needs to be given to

investing for the long-term in order to

manage the risk of business disruption.

GIM advocates for the issuance of

loyalty-driven securities that rewards

investors who hold a company’s shares

for a minimum number of years.

Figure 6: Solve for X

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Scaling Strategies for Small Business

Entrepreneurs are more apt than big

business to develop the radical solutions

that will solve the world’s most intractable

problems. The power of entrepreneurs to

solve problems is being tapped by Solve for

X, which provides a forum to encourage and

amplify technology-based “moonshot

thinking” and collaboration. (see Figure 6).54

The forums create the conditions that bring

forth the best from people collaborating and

co-creating solutions for tomorrow.

But taking an opportunity from concept to

execution can be an enormous challenge.

Entrepreneurs in the sustainability space face

the same challenges as any entrepreneur but

have the additional challenge of overcoming

barriers to scaling sustainability solutions.

On the whole, the big business strategies for

scaling a sustainability venture apply to small

to medium sized enterprises as well. But,

while small business has the advantages of

greater flexibility and nimbleness, it generally

struggles to access funding and markets as it

develops its technology or solution.

Scaling strategies for entrepreneurs centre

on successfully navigating the technology

commercialization cycle, establishing a

strong organization, and getting a firm

foothold in the marketplace.

Organizational Focus – Strategies to Build a Strong, Fit-for-Purpose Team

For typical leaders of a sustainability

business, especially if they are the founder,

the personal mission and the organizational

mission are integrated. Such leaders

consciously shape the company’s vision,

policies, and operations to address broader

societal needs. Profits are not seen as the

end goal but viewed as necessary to keep

the business going. For them, it is critical

that the mission outlives themselves. These

individuals recognize that effective

leadership is an “inside job,” as Casey

Sheahan, CEO of Patagonia put it.55 They

focus on developing their inner qualities so

they can be better leaders and influencers of

others. Taken together, these aspects

describe a leader who is authentic and

authenticity attracts the talented employees,

partners, and supporters needed to navigate

the commercialization cycle.

It’s noteworthy that many leaders of

innovative companies in the sustainability

space consciously nurture a positive team

culture. Take Whole Foods Market, for

example. Walter Robb, co-CEO of Whole

Foods, says that when you build the culture,

you build the strength and immunity of the

company. Culture sustains the mission of

the company; it makes it real. A healthy

culture creates a virtuous circle of growth

as employees are empowered to take risks

and innovate. He gives the Whole Foods

formula: Mission plus values practiced over

time equals culture.56

Culture eats strategy for breakfast. -Peter Drucker.57

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Ecosystem Focus – Strategies to Forge Strategic Relationships

Entrepreneurs in the sustainability space inevitably face decisions about when, where, why, and

with whom they should do business. Forging strategic relationships with big businesses or other

players is often necessary to successfully commercialize a new product or service. But SMEs have

some special considerations when partnering with larger organizations:

What resources or capabilities do I need

from a partner?

Who are my company’s allies? Who has

supported my company in the past?

How should I protect my company’s

intellectual property?

How can I mitigate the risk of “putting all my

eggs” in the bigger partner’s basket?

Can I accept the risk that partnering with a

big business may slow down or bog down the

successful commercialization of my

technology?

What is the optimal coupling strength? How

do I maintain flexibility?

How do I avoid being “held up” by the big

company? What leverage do I have?

Like any start-up, sustainability

entrepreneurs must navigate the difficult

technology commercialization cycle.

However, a growing cadre of consumers,

incumbent businesses, investor groups,

NGOs and government agencies are looking

for sustainability solutions and will support

and collaborate with promising new

ventures. Having said this, small business

owners need to be aware of the dangers and

pitfalls of doing business with larger

organizations – they may have different, and

perhaps hidden, agendas.

Summary of Scaling Strategies

Internally Focused Strategies

1. Have Higher Order Purpose – To appeal to tomorrow’s customers, companies need to

deliver net positive value to society. Customers are attracted to companies with a

purpose beyond maximizing profits.

2. Lead Differently – Leaders of sustainability businesses are “servant leaders” able to

nurture a positive team culture, galvanize employees and partners around a noble

purpose, and build bridges between people and organizations.

3. Eliminate Environmental Footprint – Pursue opportunities to eliminate environmental

impacts associated with all stages of a product or service’s life span, from cradle-to-

cradle across the organization and supply chains.

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4. Satisfy People’s Deepest Yearnings – Avoid manipulating people to buy more stuff, which

feeds consumerism. Businesses that respect people as whole human beings and are able

satisfy their deepest yearnings are remarkable and create a following.

5. Redesign Business Models – Innovation of business models can unlock opportunities to

create more value for customers and stakeholders while solving multiple sustainability

challenges. Examples are business models that transform products into a service, create

circular economies, or give people platforms for action.

Externally Focused Strategies

6. Create Shared Value –The more constructive and endearing role of business is to create

“shared value” (versus shareholder value) that benefits all stakeholders at the same time.

By not making trade-offs between stakeholders, it forces companies to be more creative

which leads to breakthrough performance.

7. Form Partnerships – Some of the global challenges that represent great business

opportunities can only be surmounted through multi-sectoral collaborations that include

governments. Joint ventures that move technologies and roles to the partners best able

to implement them can get their product to market faster.

8. Pursue Open Innovation – In a world where the challenges are complex and knowledge is

widely distributed, making the boundary between a company and its environment more

permeable can enrich the innovation process and accelerate progress.

9. Create Circular Economies – Drive a shift from linear “take-make-discard” economies to

circular economies where products do not quickly become waste. Create circular

economies, involving other entities where it makes sense, to generate more value from

each unit of resources and to boost growth in a sustainable direction.

10. Find Like-Minded Investors – An unrelenting focus on short-term financial results has

proven counter-productive to developing the kind of solutions needed for the world’s

biggest challenges. Sustainability companies need to find like-minded investors with

“patient capital.”

Change Strategy Scaling a sustainability solution can be an incredibly complex endeavor. The proponent must

mobilize an array of inter-dependent ecosystem players to create a supportive environment. The

process can involve the organizational world, the consumer world, the regulatory/government

world, and the economic/financial world.

It helps for the actors to have a change strategy as they embark on the scaling journey. A good

way to start is by creating an ecosystem map of all the players and environmental conditions

affecting the system. Mapping the ecosystem will help to identify the leverage points for change.

Here are some questions to address:

Where in the sustainability space do we want to play?

What is the make-up of the existing and of the ideal ecosystem? Who are the players?

What kind of business model will be most effective in this ecosystem?

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What environmental conditions need changing to accelerate adoption of our solution? Is

it a regulation or policy? Is it new infrastructure?

What is the role of each player in the successful commercialization of our solution?

How do we make or influence the needed changes? In what order should the changes be

made?

In which geographic location or market should we start the journey? What are the

criteria for expanding to new locations or markets?

Ultimately, a scaling strategy is a learning strategy. It is virtually impossible to anticipate all of the

issues that may be encountered in the journey. It is important to learn something from each step

and make adjustments when needed.

Conclusion The strategies we’ve set out offer possibilities for scaling up your sustainability enterprise.

To succeed you will need to be an advocate for change both inside your organization and

externally with ecosystem players. Become the Chief Evangelist for your solution. Invite the key

players to the table and show the benefits for all involved. We are at a turning point. This is the

time to step up, because a critical mass of players interested in collaborating for change is

emerging.

In the consumer realm, people are yearning for products and services that contribute to more

sustainable lifestyles. They may not always be able to articulate what they want, but they will

know it when the see it. More than ever before, business leaders need to communicate more

deeply with citizens and collaborate with other players in the system because the solutions of the

future will emerge at the intersection of the different actors in the system.

The business leaders who are talking to their customers, vendors, government agencies and

other players about the new opportunities are on their way to reaping the rewards while helping

the world to cross the sustainability chasm.

Business leaders are uniquely positioned to influence, encourage and inspire other players in the

system to make enabling changes. This is not to absolve politicians from their responsibility. They

need to demonstrate more leadership, in concert with business and citizen groups, to forge

collaborative solutions. But with national governments pre-occupied by other priorities and

lagging in sustainability performance,58 business leaders have an opportunity, if not an urgent need,

to drive the transition.

A big shift is underway. Society needs business to solve global challenges and new data are

showing business leaders there is a business case for doing good. Scaling sustainability solutions at

speed is within grasp. By moving aggressively forward on the sustainability journey you will ensure

the survival of your enterprise, knit yourself into the web of the newly emerging sustainable

economy, and contribute to the triple bottom line that benefits your shareholders, your

stakeholders and the planet. Seize the moment – carpe diem.

© 2013 The Zethof Consulting Group. All rights reserved

Endnotes

1 The UN Global Compact - Accenture CEO Study on Sustainability 2013. [online] Available at: http://www.accenture.com/Microsites/ungc-ceo-study/Documents/pdf/13-1739_UNGC%20report_Final_FSC3.pdf [Accessed 10 October 2013]

2 Melaver, M., 2009. Living Above the Store. White River Junction, Vermont: Chelsea Green Publishing Company.

3 Credit to Jeff Seabright, Vice President for Environment and Water Resources, The Coca Cola Company.

4 Abbott, R., 2009. Conscious Endeavours: Essays on Business, Society and The Journey to Sustainability. Scriptorium/Palimpsest Press.

5 Grant, J., 2010. Co-opportunity: Join up for a Sustainable, Resilient, Prosperous World. United Kingdom, John Wiley & Sons Ltd.

6 Clancy, H., 2013. Dell’s next big sustainability goal requires collaboration. [online] Available at: http://www.greenbiz.com/print/54878 [Accessed 21 October 2013]

7 Volans, 2013. Breakthrough Business Leaders, Market Revolutions. [online] Available

at: www.breakthroughcapitalism.com/files/volans-breakthrough-market-report.pdf

[Accessed 8 August 2013]

8 Thurm, R., 2012. Innovation Towards a Zero Impact Growth Economy. The Zeronauts Symposium, Deloitte and Volans, The Netherlands. [online] Available at: www.deloitte.com/assets/Dcom-Netherlands/Local%20Assets/Documents/NL/Denktank/Duurzaamheid/nl_nl_zeronauts_ralphthurm.pdf [Accessed 9 July 2013]

9 Global Reporting Initiative. [online] Available at: www.globalreporting.org/Pages/default.aspx [Accessed 8 August 2013]

10 The UN Global Compact - Accenture CEO Study on Sustainability 2013. [online]

Available at: http://www.accenture.com/Microsites/ungc-ceo-study/Documents/pdf/13-1739_UNGC%20report_Final_FSC3.pdf [Accessed 10 October 2013]

11 Ibid

12 Goldsmith, R. Goldsmith Technology Commercialization Model. Illinois Small Business Development Center. [online] Available at: www.centerpointgsu.com/technology-innovation/what-we-do/strategy-and-execution-support/goldsmith-technology-commercialization-model/ [Accessed 12 July 2013]

13 Ryan, E., 2013. Activating a Business Through Purpose. Conscious Capitalism 2013 Conference. [online] Available at: www.consciouscapitalism.org/cc2013/video#video_player [Accessed 16 July 2013]

14 Lee, M. and Coulter, C., 2012. Down to Business: Leading at Rio +20 and Beyond. [online] SustainAbility and GlobeScan, Available at: www.globescan.com/commentary-and-analysis/papers-and-reports.html [Accessed 16 July 2013]

15 Ibid

16 Casey, T, 2013. Sir Richard Branson’s Plan B for Sustainable Business. Triple Pundit [online] Available at: www.triplepundit.com/2013/06/richard-branson-b-team-for-sustainable-business [Accessed 16 July 2013]

17 Gollom, Mark, 2013. Why Arianna Huffington says there’s more to Business than Profit. CBC News [online] Available at: www.cbc.ca/news/world/story/2013/06/19/profit-corporate-social-responsibility-b-team.html [Accessed 3 July 2013]

18 Volans, 2013. Breakthrough Business Leaders, Market Revolutions. [online] Available

at: www.breakthroughcapitalism.com/files/volans-breakthrough-market-report.pdf

[Accessed 8 August 2013]

19 Bloom, P. and Dees, J., 2008. Cultivate your Ecosystem. Stanford Social Innovation Review. [online] Available at: www.ssireview.org/articles/entry/cultivate_your_ecosystem [Accessed 10 July 2013]

20 Zeschky, J., 2013. B.C. Brewers Gamble on Hard Graft and Craft Beer. The Province Newspaper. [online] Available at: www.theprovince.com/business/smallbusiness/Microbrewery+boom+Gambling+hard+graft+craft+beer/8436615/story.html [Accessed 23 July 2013]

21 Government of British Columbia, 2012. Province announces Incentives for B.C. Breweries. [online] Available at: www.newsroom.gov.bc.ca/2012/11/province-announces-incentives-for-bc-breweries.html [Accessed 12 August 2013]

22 Iansiti, M. and Levien, R., 2004. The Keystone Advantage: What the New Dynamics of Business Ecosystems Mean for Strategy, Innovation, and Sustainability. Harvard Business Press Books.

23 Barrett Values Centre. Culture in Organizations & Nations. [online] Available at: www.valuescentre.com/culture/ [Accessed 30 July 2013]

24 Keeble, J. and Eckerle, K., 2013. Engaging Tomorrow’s Consumer. World Economic Forum Sustainable Consumption Initiative. [online] Available at: http://www3.weforum.org/docs/WEF_RC_EngagingTomorrowsConsumer_Report_2013.pdf [Accessed 26 June 2013]

25 Ibid

26 Ibid

27 Keeble, J. and Eckerle, K., 2013. Engaging Tomorrow’s Consumer. World Economic Forum Sustainable Consumption Initiative. [online] Available at: http://www3.weforum.org/docs/WEF_RC_EngagingTomorrowsConsumer_Report_2013.pdf [Accessed 26 June 2013]

28 Harris-Confino, J., 2013. The Dangers of Stereotyping Millennials in Sustainability. [online] Available at www.theguardian.com/sustainable-business/danger-stereotyping-millennials-sustainability [Accessed 23 August 2013]

29 Sheahan, C., 2013. Conscious Leadership is an Inside Job. Conscious Capitalism 2013 Conference. [online] Available at: www.consciouscapitalism.org/cc2013/video#video_player [Accessed 16 July 2013]

30 Ibid

31 Sheahan, C., 2013. Conscious Leadership is an Inside Job. Conscious Capitalism 2013 Conference. [online] Available at: www.consciouscapitalism.org/cc2013/video#video_player [Accessed 16 July 2013]

32 Hanifan, G., 2013. Sustainable Supply Chain: Why it is Good Business. Accenture’s Sustainability 24, 2013 Conference. [online] Available at: https://mp162522.cdn.mediaplatform.com/162522/wc/4000/8535/22665/Archive/default.htm [Accessed 2 July 2013]

33 Confino, J., 2013. Consumers Believe Brands can have a Positive Impact but are Failing to do so. Guardian Sustainable Business. [online] Available at: http://www.theguardian.com/sustainable-business/consumers-brands-positive-impact-failing [Accessed 9 October 2013]

34 Ibid

35 Ibid

36 Accenture, Energizing Global Growth: Understanding the Changing Consumer. [online] Available at: www.accenture.com/SiteCollectionDocuments/us-en/landing-pages/energizing-global-growth/Energizing-Global-Growth-Final.pdf [Accessed 26 June 2013]

37 Ibid

38 Kraaijenhagen, C., 2013. The Circle Economy. The Zeronauts Symposium, Deloitte and Volans, The Netherlands. [online] Available at: www.deloitte.com/assets/Dcom-Netherlands/Local%20Assets/Documents/NL/Denktank/Duurzaamheid/nl_nl_zeronauts_christiaankraaijenhagen.pdf [Accessed 4 July 2013]

39 Gillies, R., 2013. Sustainable Consumption: Engaging Tomorrow’s Consumer. Accenture’s Sustainability 24, 2013 Conference. [online] Available at: https://mp162522.cdn.mediaplatform.com/162522/wc/4000/8535/22663/Archive/default.htm [Accessed 2 July 2013]

40 PEW Research Center, 2010. Millennials: A Portrait of Generation Next. Confident, Connected, Open to Change. [online] Available at: www.pewresearch.org/millennials/ [Accessed 26 June 2013]

41 World Health Organization. Urban Population Growth. [online] Available at: www.who.int/gho/urban_health/situation_trends/urban_population_growth_text/en/ [Accessed 8 August 2013]

42 Freeman, E., 2012. Creative Capitalism Elective - Darden School of Business. [online] Available at: www.youtube.com/watch?v=4VJMYu-_2TM [Accessed 5 July 2013]

43 Paul Polman interview with Jo Confino

44 Sisodia, R., Wolfe, D. and Sheth, J., 2007. Firms of Endearment: How World Class Companies Profit from Passion and Purpose. Wharton School Publishing.

45 Lee, M. and Coulter, C., 2012. Down to Business: Leading at Rio +20 and Beyond. [online] SustainAbility and GlobeScan, Available at: www.globescan.com/commentary-and-analysis/papers-and-reports.html [Accessed 16 July 2013]

46 Coulter, C., Erikson, J., and Buckingham, F., 2012. Collaborating for a Sustainable Future: A GlobeScan/SustainAbility Survey. [online] Available at: www.globescan.com/commentary-and-analysis/press-releases/press-releases-2012/252-collaborating-for-a-sustainable-future.html [Accessed 16 July 2013]

47 Recyclebank, 2013. Waste Management and Recyclebank Mark First Year of Collaboration. Recyclebank Press Release, March 20, 2013. [online] Available at: www.recyclebank.com/corporate-info/newsroom/press-releases/219 [Accessed 31 July 2013]

48 Ibid

49 Veneman, A., 2013. Sustainable Supply Chain: Why it is Good Business. Accenture’s Sustainability 24, 2013 Conference. [online] Available at: https://mp162522.cdn.mediaplatform.com/162522/wc/4000/8535/22665/Archive/default.htm [Accessed 2 July 2013]

50 Ellen MacArthur Foundation, 2013. Towards the Circular Economy: Opportunities for the Consumer Goods Sector. [online] Available at: www.ellenmacarthurfoundation.org/business/reports/ce2013 [Accessed 31 July 2013]

51 Ibid

52 Social Investment Organization, 2013. Canadian and Global RI Trends – Canadian responsible investment assets up 16% since 2010: new report. [online] Available at: http://www.socialinvestment.ca/sri-review/ [Accessed 22 October 2013]

53 Generation Investment Management LLP, 2012. Sustainable Capitalism. [online] Available at: www.generationim.com/media/pdf-generation-sustainable-capitalism-v1.pdf [Accessed 6 August 2013]

54 Solve for X: A forum to encourage and amplify technology-based moonshot thinking and collaboration. [online] Available at: www.solveforx.com [Accessed 8 August 2013]

55 Sheahan, C., 2013. Conscious Leadership is an Inside Job. Conscious Capitalism 2013 Conference. [online] Available at: www.consciouscapitalism.org/cc2013/video#video_player [Accessed 16 July 2013]

56 Robb, W., 2013. Bringing a Conscious Culture to Life. Conscious Capitalism 2013 Conference. [online] Available at: www.consciouscapitalism.org/cc2013/video#video_player [Accessed 16 July 2013]

57 A quote widely attributed to management expert Peter Drucker.

58 Lee, M. and Coulter, C., 2012. Down to Business: Leading at Rio +20 and Beyond. [online] SustainAbility and GlobeScan, Available at: www.globescan.com/commentary-and-analysis/papers-and-reports.html [Accessed 16 July 2013]

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