Unfinished Business - GlobeScanThe Regeneration Project Unfinished Business – Perspectives from Sustainable Development Pioneers 3 Foreword This year marks the 25th anniversary of

Unfinished BusinessPerspectives from the Sustainable Development Frontier

evidence and ideas. applied

The Regeneration Project UnfinishedBusiness–PerspectivesfromSustainableDevelopmentPioneers 2

Foreword 3

Acknowledgements 4

Overview 5

Introduction 6

Urgency&Crisis 9

Roles,Responsibilities&Leadership 12

Disruption 14

Barriers&Levers 16

TheRoadAhead 20

What’sNext 21

AboutUs 22

Sponsors 23

Contents


Foreword

Thisyearmarksthe25thanniversaryofbothGlobeScanandSustainAbility.Italsomarkslargermilestonesinthesustainabilityfield:itisthe25thanniversaryofthereleaseoftheBrundtlandReportOur Common Future,andtwodecadeshavepassedsincetheRioEarthSummitelevatedsustainabledevelopmentontheglobalagenda.

Anniversariesinviteustoreflectandassesspastprogress,andwewouldberemissnottolookbackatthisjuncture.Giventheurgencywefeel,however,wearemostdeterminedtoconsiderhowtoscaleandaccelerateprogressonsustainabledevelop-mentintheyearsahead.Fromthiscircumstance,The Regeneration Projectemerged.

BeginningwithaseriesofvideointerviewswithluminarysustainabledevelopmentPioneers,The Regeneration ProjectalsowillincludetwoglobalpublicopinionandtwoexpertstakeholdersurveysbeforeandafterRio+20.Thesurveyswillconsiderleadershipchallengesandthepotentialforsocietaltransformation.GlobeScanandSustainAbilitywillpresentinitialprojectfindingsatRio+20inJune,andthenconductglobalsalonsincitiesworldwideinthesecondhalfof2012.Atthesalons,wewillbegintodeveloparoadmaptohelpdeliversustainabilitywithinthenextgeneration,focusingespeciallyontheroleoftheprivatesector.Asweprogress,wewillpublishaseriesofwhitepapersandotheroutputssharingourlearning.

Thisisaboldundertaking,andoneweapproachhumbly.Werecognizeandappreciatethemyriadeffortsofothersworkingonthisagenda,andwewillseektobuildonotherinitiativesandtoengageasmanypartnersaspossible.ThosealreadysupportingThe Regeneration Projectarelistedonpage23ofthisreport;wewouldliketoacknowledgeespeciallySCJohnson,ourpresentingsponsor,fortheenormousfaiththeyhaveshownbyofferingtheirsupportinthismanner.

Morepartnerswillbeneededandmadewelcomeastheyearprogresses.ThesuccessofThe Regeneration ProjectwillstemnotonlyfromtheintelligencegatheredfromthePioneerinterviewsandsurveys,butalsothroughthecreationofacollaborativeandengagingplatformforcollectiveaction.

Whetheryoucometoplayaformalrole,wehopetodeliveraprojectyoumightadmireandfinduseful.Wewouldwelcomeyourfeedbackatanytime.

[email protected]

[email protected]


Acknowledgements

OurwarmthanksgotoallwhohavecontributedtothelaunchofThe Regeneration Project, including:

• ThesustainabledevelopmentPioneerswhomweinterviewedinvari-ouslocationsaroundtheworldin2011andwhogenerouslysharedtheirexperienceandinsightswithus.TheirwisdomformsThe Regeneration Project’sfoundations.Pioneercontributionsarewoventhroughoutthisreport,andtheyareacknowledgedindividuallyinthispaper.

• OurPresentingSponsor,SCJohnson,withoutwhichthisprojectwouldnotbepossible.

• OurSponsor,DuPont,forsupportoftheprojectintheyearahead.

• OurMediaSponsor,Guardian Sustainable Business,whichwilllaunchandhosttheRay Anderson Memorial Interviews,ourseriesofvideointerviewswithaforementionedsustainabledevelopmentPioneers,lead-inguptotheRio+20EarthSummit.WelookforwardtopartneringwithGuardian Sustainable Businessonaglobaleventonsustainabledevelop-mentinLondonthisJune.

• Thefollowingsupportingorganizations:GLOBE,TheInternationalCouncilonMiningandMetals(ICMM),NationalGeographic,NetImpact,ReportComunicação,Starbucks,SustainOurAfrica,SustainableLifeMedia,UnitedNationsEnvironmentalProgram(UNEP),theWorldBankandtheWorldBusinessCouncilforSustainableDevelopment(WBCSD).Wearegratefulfortheirsupportandfortheirthoughtleadershipinthefieldofsustainabledevelopment.

• And,ourcolleaguesatSustainAbilityandGlobeScan,particularlyFrancesBuckingham,ChrisGuenther,AaronJaffe,GeoffKendall,LiviaMartini,LakshmiSivagnanasundaram,PatrinWatanatadaandEricWhanforinvaluablesupportwithproduction,researchandeditorialguidance.Finally,wethankJonathanFreemanandChrisWashforthereportandwebsitedesign.

LindsayClinton,LeadAuthorKyleWhitakerFebruary2012


Overview

The Regeneration Project,acollaborativeandmulti-facetedinitiativebyGlobeScanandSustainAbility,aimstoprovidearoadmapforachievingsustainabledevelopmentwithinthenextgeneration,focusinginparticularonwaystheprivatesectorcanimprovesustainabilitystrategy,increasecredibilityanddeliverresultsatgreaterspeedandscale.

Mindfulthatwearenotthefirstortheonlyactorstoproffersuchasustainabledevelopmentvision,wehumblyaspiretodevelopthisroadmapbycollaboratingwithawidevarietyofstakeholdersandpartnersfromdifferentsectorswhocanstrengthentheoutcome.Weembarkonthisprojectnotknowingalltheanswers.ThebeautyandchallengeofThe Regeneration Projectliesinitsdesign:areflectiveprocessofprogressiveandparticipatoryproblem-solvingwhoseoutcomeswillbesubstantialandvaluable,butwhichwillrevealthemselvesgradually.

Thisprojectoffersourowncompanies,bothintheir25thanniversaryyear,theopportunitytoreflectonthepastandlookcriticallyatthefuture.Importantly,anotherkeyevent,theconveningoftheJune2012Rio+20Summit,groundsourworkinalargerglobaldialogueaboutthefutureofsustainabledevelopment.

Thiswhitepaperisthefirstinaseriesofinitiatives(SeeFigure1)fromThe Regeneration Projectthatwillbelaunchedintheyearahead.

Figure 1: TheRegenerationProject,2012Initiatives

FirstWhitePaper(PioneerPerspectives) March

Ray Anderson Memorial InterviewsLaunchinPartnershipwithGuardian Sustainable Business

March

Launchofwww.theregenerationproject.com March

PublicOpinionResearchonProgresstoDate May

ExpertStakeholderSurveyonExpectationsforRio+20 May

SecondWhitePaper June

Rio+20SideEventsinRiodeJaneiro June

SalonsinCitiesaroundtheWorld July–October

PublicOpinionResearchonChallengestoSocietalTransformationpostRio+20 September–October

ExpertStakeholderSurveyontheRoleofBusinesstoAchieveSustainability September–October

FinalWhitePaperandSustainabilityRoadmap October–December


Signs of stress are apparent in many of the world’s

largest economies. Theeurozonefaceswhatmaybe

anexistentialcrisis,whileincomeinequalityintheUS

iscausingadivisioninopportunitiesandthreatening

economic growth. Imbalancesof power inChina are

fuelingpopulardiscontent,anddespiteIndia’sincred-

iblegrowth,hundredsofmillionsofitspeoplearestill

miredinpoverty,asarebillionsworldwide.

Recentsocialprotestsindicatedisillusionmentwith

prevailingpoliticalandeconomicsystems,reflecting

growingdistrust in leadersofall stripes.Thecollec-

tive ire—suicides among Chinese workers, hunger

strikes by Indians, protests across the Arab world

andsouthernEurope, fuel strikes inNigeria, educa-

tionreformmarchesinChile,renewedenvironmental

activismacrossNorthAmerica,andthe“Occupy”pro-

testsaroundtheworld—islinkedtoquestionsabout

sustainabilityandsurvivability.Activistsrallyagainst

business,governmentandthe“1%”becausetheysee

andfeelinequity.

Humanityislivingbeyonditsnaturalmeans.Weare

indebttofuturegenerationsandtotheEarthitself.We

inhabitaseven-billionpersonplanetandareonthe

way tonineor tenbillionbymid-century.Theworld

is losingspeciesata rate that is100 to1,000 times

faster thanthenaturalextinctionrate.1Weareverg-

ingonpeakmetals,peakphosphorous,peaksoiland

peakoil.Whiletechnologicaladvancementsandnew

discoveriesareupendingviewsonpeakoil,theassets

couldstillbestrandedduetoanotherformof‘peak’—

that of greenhouse gas (GHG) emissions. Last year,

theCO2levelsintheatmospherereachedanall-time

highof392partspermillion(ppm),upfrom356in

1992,2 both of which are above the limit cited by

scientists because it will almost certainly push us

beyond the risky two-degree Celsius temperature

increasethreshold.

The current economic uncertainty, societal discon-

tentandenvironmentalinflectionpointscoincidewith

two especially significant milestones in sustainable

development.Theyear2012marksthe20thanniversary

oftheUnitedNations’EarthSummitinRiodeJaneiro

andthe25thanniversaryoftheBrundtlandReport,Our

Common Future.Itistimely,therefore,toask:

Introduction

1 International Union for the Conservation of Nature, 20042National Oceanic and Atmospheric Administration Earth System Research Laboratory (NOAA-ESRL)

How far have we come since the concept of sustainable development was elevated to the global

policy agenda?

Where have we excelled and where have we fallen short?

Most importantly, how can we regain momentum and plot a hopeful path forward?


The Regeneration Projectaimstodriveforwardan

actionresearchinitiativethatwillgiverisetoaroad-

mapfortheachievementofsustainabledevelopment

withinthenextgeneration.Itfocusesparticularlyon

the role of the private sector. This white paper, the

firstinaseriesofthreetobereleasedinthecourse

ofThe Regeneration Project,isinspiredbyandleans

heavily on the perspectives of twenty sustainable

developmentPioneers(SeeFigure2,page8)whom

weinterviewedlastyearforaninitiativenowknown

astheRay Anderson Memorial Interviews.3

Inour interviews,wetalkedtothePioneersabout

regeneration:howtoachieveitandwhetherthereis

still time. Through our conversations—on farms in

India,onthesidelinesoftheClintonGlobalInitiative

and in offices across Europe—we heard about the

sizeablehurdlesaswellastheincrementalandmore

fundamental wins of the sustainable development

journeyoverthelasttwodecades.

FromourinteractionswiththePioneers,The Regen-

eration Project emerged. In this firstwhite paper of

theproject,welookatwhathashappenedsincethe

1992EarthSummit andhighlight theneed forbusi-

nesstohelpchallengetheorthodoxiesinourcurrent

economicmodel.Thenweraisequestionsaboutthe

futureincluding:

Introduction

Who should take the lead in the sustainable development journey?

What responsibility does society shoulder in the road ahead?

How can we balance the needs of the future with our current priorities?

3 Ray Anderson, Founder and Chairman of Interface, who passed away in 2011, was recognized by many as a sustainability pioneer and maverick. Our Pioneer videos are launched in his memory, with permission from his family.


Introduction

Figure 2: Global Sustainable Development Pioneers

ThePioneersweinterviewedfortheRay Anderson Memorial Interviewsarenotablefortheirlongtermcommit-

menttosustainabledevelopmentandrepresentacross-sectionofbusiness,governmentandcivilsociety.*

Lester Brown – Founder & President, Earth Policy Institute

Madame Gro Harlem Brundtland – Former Prime Minister of Norway; Chair, Brundtland Commission

Nitin Desai – United Nations Secretary-General for Rio+10; Senior Economic Advisor, Brundtland Commission

John Elkington – Founder, SustainAbility and Volans

Bill Ford – Executive Chairman, Ford Motor Company

Kris Gopalakrishnan – Co-Chair of Infosys Technologies; Chair, Business Action for Sustainable Development (BASD) 2012

Yolanda Kakabadse – President, World Wildlife Fund (WWF) International; former President, International Union for the Conservation of Nature (IUCN)

Matthew Kiernan – Former Executive Director, World Business Council for Sustainable Development (WBCSD); Founder, Innovest Strategic Value Advisors

Israel Klabin – Founder, Brazilian Foundation for Sustainable Development

Jim MacNeill – Secretary-General of the Brundtland Commission and lead author of the Brundtland Report

Doug Miller – Founder, Executive Chairman & CEO, GlobeScan

Rajendra Pachauri – Chair, Intergovernmental Panel on Climate Change (IPCC); Director-General, The Energy and Resources Institute (TERI)

Jonathon Porritt – Founder, Forum for the Future

Vandana Shiva – Founder, Navdanya

Achim Steiner – Executive Director, United Nations Environment Program (UNEP)

Bjorn Stigson – President, World Business Council for Sustainable Development (WBCSD)

Maurice Strong – United Nations Secretary-General for 1992 Rio Earth Summit

Sir Mark Moody-Stuart – Former Chairman, Anglo American; former Chairman Royal Dutch Shell; Chair, BASD 2002

David Suzuki – Founder, David Suzuki Foundation; Host ‘The Nature of Things’

Sha Zukang – United Nations Secretary-General for Rio+20

* Our Pioneers list is not exhaustive. We deeply respect and acknowledge the work that many others have done along the long sustainable development journey in the years leading up to the United Nations Conference on the Human Environment in Stockholm in 1972 and the intervening years since.


Reflecting on Rio 1992In1992,thescientist,broadcasterandenvironmen-

talactivistDavidSuzukiattendedtheRioEarthSum-

mitalongwithhis12-year-olddaughterSevern,who

hadbeggedtoattend.AttheSummit,Severnmade

ahistoricspeechtodelegates inwhichshebravely

asserted,“Iamfighting formy future. Iamhere to

speakforallgenerationstocome...Iamonlyachild,

yetIknowthatweareallinthistogetherandshould

actasonesingleworldtowardonesinglegoal.”

In reflecting two decades later on his daughter’s

speech, Suzuki worries that not much has changed

sinceSevern’saddress:“Thesadthingisthat20years

laterthevideoofherspeechisresonatingtremendously

on the Internet.But,a lotofpeople think that itwas

somethingshegaverightnow,becauseit’severybitas

relevanttoday.”

Inourinterviews,somePioneersrecalledtheopti-

mismof 1992. IsraelKlabin, formermayorofRiode

Janeiro,anorganizeroftheEarthSummitandFounder

oftheBrazilianFoundationforSustainableDevelop-

ment, said, “In 1992, we were absolutely sure and

hopeful and enthusiastic about change in the right

direction.”

Unfortunately, that enthusiasm did not translate

intosufficientaction.MauriceStrong,whoservedas

United Nations (UN) Secretary-General for the 1992

RioEarthSummit,stated:“Ifgovernmentshaddone

what they agreed to do [at Rio] wewould bemuch

closertoananswerthanwearenow.”

ThatisnottoundercutthesignificanceoftheSummit

itself,ahistoricpointinourjourneytowardssustain-

ability.MadameGroHarlemBrundtland,formerPrime

MinisterofNorwayandChairoftheBrundtlandCom-

mission,explains,“It isexceptional ininternational

relationsthatasummitlikethat[couldgenerate]the

climateconvention,abiodiversityconventionandan

Agenda21.All thiswasdone infiveyearsafter the

reportOur Common Future. In that sense, the first

Rioconferencewasinmanywayssensational.”

Convergent CrisesThe recent—andongoing—financialcrisishasmade

foradramaticandchallengingbackdroptotheRio+20

SummitcominginJune.Whilemanycountries’econo-

miescontinue to try tomakesenseof theirbalance

sheets,someexpertshavecalledforeconomicreform

andforareworkingofcapitalism.

ManyofthePioneersspokeoftheneedtoreevalu-

atethesystembywhichwemeasuresocietalprogress.

VandanaShiva,anenvironmentalactivistandFounder

of Navdanya, believes we need to reprioritize and

refocus:“Fortoolong,wehavebeenmadefoolsof

withtheillusionsandfictionsofWallStreet.”

We are, according to Shiva, “at a cross-roads of

multiplecrises…thecrisesoftheeconomyandfinancial

world,ofclimatechange,ofpeakoil,overallecological

crisis,thewatercrisis,thebiodiversitycrisis…it’snow

aconvergentcrisis.”

Urgency & Crisis

To read background briefs on sustainable development milestones over the last 25 years, including the Brundtland Commis-sion, the 1992 Earth Summit and the 2002 Johannesburg Summit, visit:

www.theregenerationproject.com


A Race Between Tipping PointsAsturbulenceinthemarketsandtheecosystemin-

creases,itbecomesimperativetogenerateawhole

system response from government, business and

society. Lester Brown, Founder & President, Earth

Policy Institute, told us, “Wehave reached a point

where our scarcest resource is time…nature is the

timekeeper,butwecan’tseetheclock.”

He characterizesour challengeas a racebetween

twotippingpoints.Thefirstisapoliticaltippingpoint,

themoment in timewhenhumanitydecides to take

actionontheseurgentissues.Thesecondisanenvi-

ronmentaltippingpoint:thepointbeyondwhichthere

islittlewecandotorecoverwhatwehavelost.Social

andeconomicimbalancesonlyexacerbatetheurgen-

cy,hasteningtheapproachofbothtippingpoints.

Truth & ChangeWhilethedesiretoturnthetideisstrong,transfor-

mative change is nearly always the sum of many

steps, both tentative and fundamental—a process

ofprototyping, learning from failure,evolutionand

continuousimprovementovertime.

ShaZukang,Secretary-GeneralofRio+20andhead

oftheUNDepartmentofEconomicandSocialAffairs,

said,“Thechangecannottakeplaceovernight.Itcan

only be incremental. That said, being incremental

doesn’tmeanyoushouldgoslow…let’sdoitimme-

diately through education, throughmassmedia to

educate,wakeup,shakeupthepeople.”

ThePioneersbelievewe canandmustdomore to

raiseawarenessamongthepublicwiththeknowledge

wehave.RajendraPachauri,ChairoftheIntergovern-

mental Panel on Climate Change (IPCC) said, “The

messagethatshouldhavegoneouttothepublicand

that could have created a basis for action has not

beendisseminated effectively. Even today,we know

thattherearealargenumberofpeoplewhodon’tbe-

lieveinthehumanlinkbetweenwhatwe’redoingasa

societyandclimatechange.It’scriticallyimportantto

spreadthetruth.”

FromOur Common FutureanditspredecessorLimits

to Growth,tothereportsoftheIPCCandinitiativeslike

350.org, society hasmore than adequate rhetoric,

scienceanddata.

DougMiller,GlobeScan’sExecutiveChairmanand

CEO, said, “It takes 20 years to get fundamentally

new thinkingpercolating through society, especial-

lysocietyataglobalscale.Fromourpollingtoday,

citizensofdevelopingcountriesaremoreconcerned

aboutenvironmental issuesthanthoseofus inthe

industrializedworld.”

Urgency & Crisis

How can we get people to take the science seriously?

How can we share the knowledge?

How can we encourage people to change their behavior?

Which tipping point will we reach first?

Will we act before the clock runs out?


Pioneers, thoughfrustratedbythe lackofprogress

wehavemade in the last twodecades, believewe

have theopportunity tocreateanewkindof road-

mapforsociety.

BrownthinksofthisroadmapasPlanB,analter-

native to Plan A because “business as usual isn’t

anoptionany longer.” InBrown’s conception,PlanB

entailscuttingcarbonemissionsby80%by2020(no-

tably 2020, not 2050, themore common yet distant

targetoftenassociatedwiththislevelofemissionsre-

duction),stabilizingpopulationtonotmorethaneight

billion people, eradicating poverty, and restoring

theeconomy’snaturalsupportsystems,likeforests,

soils,grasslands,aquifersandfisheries.Thekey,he

says, in“adoptingPlanB,orsomethingsimilar,” is

leadership.

Bill Ford, Executive Chairman of the Ford Motor

Company,echoestheneedforleadership:“Youhave

tohavevision,andyouhavetohaveaplantoachieve

thatvision.Youhavetohaveawaytoaffectsolutions.

That’swhata leaderdoes:solveproblems.This isa

bigproblem,andwe’vegottosolveit.”

If done right, an alternative vision, plan or road-

mapcouldpavethewaytowardswhatShivacalls“a

newkindofstability”characterizedby“vibrantlocal

economies based on biodiversity, active, living de-

mocraciesanddiversecultures.”

Urgency & Crisis

What could our collective Plan B look like?

What elements should an actionable roadmap contain?

Who should drive the plan forward?

Leadership & Vision


Governments Bear the Greatest BurdenWhiletheapproachingRio+20Summitisintendedto

beagatheringofheadsofstateandministers from

around theworld, the Pioneers remain sober about

their expectations of global political leaders. Achim

Steiner, Executive Director of the UN Environmental

Program(UNEP),explained,“Ithinkthepoliticallead-

ershipinmostofourcountriesatthemomentiseither

preoccupiedornotabletofocusonthischallenge,or

notpreparedtofocusonit.”

NitinDesai,DeputySecretary-Generalofthe1992

Earth Summit, elaborated, “Governments have the

longestwaytogo.Internationalrelationsisdesigned

for national governments to protect their national

interest…notissueinterest.”Thelaboredenactment

of the Kyoto Protocol—an indirect outcome of the

first Earth Summit—is indicative of this hindrance.

The Protocol finally became enforceable only in

2005, nearly adecadeandahalf after theoriginal

EarthSummit,andtheworld’sbiggestpolluteratthe

time, theUnitedStates, refused to ratify it.Others

arebacksliding—forexample,attheendoflastyear,

Canada formally announced that it will withdraw

fromtheProtocol.

Both the global public and sustainability experts

havebecomeincreasinglycriticalofgovernmentsover

thepastfewyears.Trustingovernmentshasdropped

precipitouslyamongtheglobalpublic,4whilesustain-

abilityexpertsfrombusiness,government,academia

andnon-governmentalorganizations(NGOs)arealso

increasinglylikelytogiveapoorratingtogovernment

leadershiponsustainabledevelopment.5BjornStig-

son, formerpresidentof theWorldBusinessCouncil

forSustainableDevelopment(WBCSD)warned,“We’re

goingtohavetoreachadeepercrisisbeforegovern-

mentsfeeltheyhaveapoliticalmandatetoact.”

Roles, Responsibilities & Leadership

If not government, who will fill the gap?

What is the role of civil society? Of business?

4 According to GlobeScan’s 2010 survey across 24 countries, governments receive the lowest trust rating of any institution, behind NGOs, the UN, churches, the media and business.

5 This finding is from The Sustainability Survey, an ongoing research program conducted in partnership between GlobeScan and SustainAbility. Between 500-1,000 experts from 60+ countries are surveyed 6 times a year from civil society, business, government and academia.


NGOs Shift FocusMany NGOs have modified their approach over the

last two decades, from relatively uni-dimensional

campaigning to being increasingly valuable sources

ofon-the-groundknowledgeandmoreopen-minded

collaborators.WhileNGOscanandshouldcontinueto

usecampaignsstrategically—theycanbeeffective—

manyalsonowseek toworkside-by-sidewithbusi-

nesstoco-createnewsolutions.

Madame Brundtland explained, “The suspicion

betweentheNGOcommunityandthebusinesscom-

munitywasdeep25yearsago.Now,therearebridges

building…thattheynowlinkuptogether,talktoeach

other,andworktogetheristhenewarena.”

Businessleadershavebecomesomeofthebiggest

proponentsoftheshiftingstrategiesofNGOs.BillFord

recalls, “There’s been a tremendous change in atti-

tude,bothattheNGOlevelandatthecorporateside.

We in thebusinessworld,and I shouldsayparticu-

larlyatFord,havegonefromacomplianceattitudeto

oneofreallystrivingforleadership.We’vedonethat

withthehelpofNGOsalongtheway,whohaveboth

encouragedusandproddedusovertheyears.”

In contrast to government, NGOs often can move

quickly, aren’t afraid to experiment, and, particularly

withthehelpofsocialmedia,canmobilizeconstituents

with impressive effect. The conservationist Yolanda

Kakabadse,whoactedastheNGOliaisonattheEarth

Summit and is now President ofWorldWildlife Fund

(WWF)International,explained,“Thereisnorecipefor

sustainabledevelopment.[Civilsociety]ispermanently

challenging[itself ]totrynewwaysofdoingthings.And

sometimeswesucceedandsometimeswedon’t.But,

[we]havethecouragetotry,torisk,togoforit.”

Bjorn Stigson cited the 2002 World Summit on

Sustainable Development in Johannesburg as a

public, visible example of NGOs’ changing tactics.

In a surprising showof solidarity in SouthAfrica a

decadeago,Greenpeaceandmembersof thebusi-

nesscommunityissuedajointstatementexpressing

frustration with governments on their “mixed, and

often contradictory signals” on the “environment,

especiallyongreenhousegasemissionreductions,”

“whichisnotgoodforbusinessnor,indeed,forthe

futureofhumanity.”

Broader Business AgendaSomebusinessesarehelpingfillthegapleftbygov-

ernment, becoming more efficient, innovating in

processandtechnology—andputtingmorepressure

ongovernment.This isawelcome,butfairlyrecent

development.

At the1992EarthSummit,many inbusinesswere

merely learning about sustainability challenges and

oftenwerenotpartoftheconversation.Whenandif

businesstookactioninthe‘90s,itwasoftenaccused

(andtoooftenfoundguilty)ofgreenwashing.

Today,businessisakeyplayer.BillFordexplained,

“Theroleofbusinessinthebroaderagendareallyhas

changedandIthinkforthebetter…ifyouthinkback

20yearsago,businesswastheenemy.”

While it is hard to generalize about business, or

government for that matter, the Pioneers largely

agreed thatbusinesshasevolved in itswillingness

tocontributetosustainabledevelopment,andmany

already anticipate business to be a leader in the

journeyahead.Bruntlandsaid,“Thereisaneedfor

businesstotakeontheopportunitiesandthelead-

ership to convince political leaders about what is

necessary.”

SirMarkMoody-Stuart, formerChairmanofAnglo

AmericanandRoyalDutchShellandChairofBusiness

ActionforSustainableDevelopment(BASD)in2002,

alsoseesamoredirectcorrelationbetweenbusiness

andsustainability:“Ifyoulookattheburningissues

ofsustainabilityandifyousaywhataretheissuesfor

business,theissuesforbusinessareactuallymoreor

lessthesameastheissuesfortherestofsociety.”

Roles, Responsibilities & Leadership


Howhasbusinessprogressedfrombeinganoutsid-

ertobecomingakeypartofthesolution?Jonathan

Porritt, Founder of Forum for the Future, exhorted,

“Business can see this reality more acutely than

politicians seem able to do. They’ve assessed that

youcan’treallymakegoodbusinessinacollapsing

planet.”

Manybusinesseshavebegun to focusmoreon in-

novation, viewing sustainability as a surmountable

challenge.KrisGopalakrishnan,ExecutiveCo-Chairman

of InfosysandChairof the2012BusinessCouncil for

SustainableDevelopment(BASD),said,“Researchand

innovationcreatedisruptivechangeandcanfundamen-

tallyalterthewaywelookataproblem.Ifyouactually

createasolutionforclimatechangeandsustainability,

greengrowth,aswellassolvesomeoftheproblemsof

unemployment…thisiswhere[we]cancompete.”

Yet the challenge remains for companies to get

ahead of expectations. According to GlobeScan’s

trackingofglobalsocietalopinionacrossthedecade

between2001and2011,thereisanongoinggapbe-

tween what the public expects of business and its

perceived performance in delivering in the areas of

theeconomy,societyandenvironment.Thisgapwill

continue toputpressureonbusiness tomakegood

onsocietalexpectations(SeeGraph1).

Disruption

Business on a Collapsing Planet

Graph 1: Expectations vs Performance Gap, BusinessAverage of 15 Tracking Countries,* 2001–2011

R11W1_2t12t_gap

*Includes Australia, Brazil, Canada, Chile, China, France, Germany, Italy, Mexico, Nigeria, Russia, SouthKorea, Turkey, the UK, and the USA

**Aggregate net expectations of up to ten responsibilities of large companies (not all responsibilitieswere asked in each country each year)

***Aggregate net CSR performance ratings often industries (not all industries were asked in each country each year)

56

-6

2001

2003

2005

2007

2009

2011

-10

10

30

50

70

CSR expectations**

CSR industry performance***


Accounting for ExternalitiesTotrulyachievesustainabledevelopmentinthenext

generation,wewillneedtoreconsidertheincentives

andpenaltiesinoureconomicsystem,whicharetoo

littlechangedsincetheEarthSummit.

Porritt stated, “Given that not very much has

changed in termsof theorthodoxeconomicprescrip-

tionforprogress,whatbusinesshasactuallydone in

theintervening20yearsisastonishing.Thisisamarket

thatisfundamentallydesignedtothwartsustainability.

It’sdesignedtocontinuetoexternalizecost,topunish

goodperformance.It’sdesignedtorewardthosewho

cutcornerswithnaturalcapitalandwiththefutureof

theplanetanditslifesupportsystems.”

Ourcurrenteconomicsystemdoesnotaccountfor

ormeasuretheresourcesthatmakeoureconomies,

ourcompaniesandourlivesfunction.Shivaexplained,

“‘Growth’onlymeasurescommercial transactions. It

doesn’tmeasuregrowthinanyrealterms.Itdoesn’t

measure the growthof our trees, the growthof our

soil,thegrowthofourchildren,thegrowthofhealthin

society,thegrowthofhappinessandjoyinsociety.”

Twenty-firstcenturybusinesseswillhavetobemore

cognizant of planetary limits, and also bewilling to

createnewmodelsthattakeintoaccountbiodiversity

andnaturalresources.

Shifting the DiscourseOf course, creating economic system change, and

withinthat, fosteringnewbusinessmodelsandnew

definitionsofvalueandprosperity,isacomplexunder-

taking.Whatstepswillleadusthere?

JohnElkington,FounderofSustainAbilityandVolans,

opined,“OneofthefundamentalproblemsIthinkthe

C-suiteactors in thisspacecurrentlyhave is thatas

moreandmoreof thisbecomessystemic,not justa

single issue, it becomes dramaticallymore complex

intermsofwhodoeswhat,who’sgotresponsibility,

where the risksandopportunities lie,what the role

ofthisparticularcompanymightbemovingforward.”

Steinerbelievesthatweneedtochangethelanguage

weuse.“Ibelieve thenotionof ‘trade-offs’hasbeen

oneofthemajorfactorsthathasheldusback…Wehave

toaddresstheinteractivityofthethreedimensionsof

development.Wehave tounderstand that therecan,

inthelongrun,benotrade-off,becauseifwedestroy

the ecological infrastructure and foundations for our

economy,therecanbenofuturedevelopment.”

Partoftheproblemappearstobealackofshared

objectives.Companiescompete inawaythat incen-

tivizesdepletionofnaturalresources.

Steinercontinued,“Ourglobaleconomicdiscourse

ispremisedconstantlyoncompetitionandtherefore

conflict.Wearetalkingaboutzero-sumgamesallthe

time and not aboutwhatwe can gain from shared

objectives.”

Disruption


Changing PrioritiesMany Pioneers call for a rethink of the economic

system, although they use different language to

describe similar goals. Maurice Strong calls for a

“transformationofoureconomyfrombeingeconom-

icallydriven tobeingecologicallydriven,”whereas

Klabinidentifiesaneedto“changetheprioritiesof

theeconomicmatrix.”Zukangreferencesa“change

ofparadigm”inthe“patternofproductionandcon-

sumption”andStigsonacknowledges that “weare

lookingataworldwhichisresourceconstrainedand

pollutionconstrained”and“youhavetoputproper

pricingonthese…youhavetointegratethemintothe

economicsystem.”

Thecallforchangingthewaywelookatoureconom-

icsystemisnotnew.RobertF.Kennedymadewavesin

a1968speechwhenhesaid that the“grossnational

product [of a country]measureseverything, in short,

except that whichmakes life worthwhile.” To realize

thatsomanyleaders—asfarbackas45yearsagoand

with frequency today—have called for dramatic sys-

temiceconomicchangeisremarkableandpowerful.

ItechoesthelanguagereleasedintheJanuary2012

UN report of the High-Level Panel on Global Sus-

tainability,Resilient People, Resilient Planet,which

arguesfora“newpoliticaleconomy”forsustainable

development whichwould recognize the pricing of

environmentalexternalities,theimportanceofinno-

vationandvaluebeyondnarrowconceptsofwealth.

Thereportrecommendsthatthe“internationalcom-

munityshouldmeasuredevelopmentbeyondgross

domesticproduct(GDP)anddevelopanewsustain-

abledevelopmentindexorsetofindicators.”

Biting the Bullet, Taking the LeadWedeeplyhope thatRio+20will result in concrete

commitments toward a new political economy,

but what happens afterwards may be even more

important.

Corporateleadersarebeginningtotakeupthechal-

lengetodriveenginesofchangeforward.Accordingto

thelatestThe Sustainability Survey,expertspointto

anewgenerationofcompaniesleadingthechargeon

thetransitiontosustainabledevelopment, including

Unilever,GE,Interface,Marks&SpencerandNatura.

Thesecompanieshavenotonlyintegratedacompre-

hensivevisionwithstrongperformancebuthavealso

beenabletoeffectivelyengagestakeholdersintheir

vision.

Jim MacNeill, Secretary-General of the Brundtland

CommissionandleadauthoroftheBrundtland Report,

said,“Ihatetoimaginewherewewouldbeifanumber

ofcorporateleadershadnotbittenthebulletandtaken

thelead.Theyhavetheimaginationtoappreciatethat

a shift to more sustainable forms of development,

more sustainable in product design, for example,

orinmanufacturingorinmarketing,couldmakean

enormousdifferencetotheirbottomline,andmore

generally.”

Barriers & Levers


A2011surveyofBusinessforSocialResponsibility

(BSR)membercompanies,conducted inpartnership

withGlobeScan,illustratesthatsustainabilityintegra-

tion in companies is only halfway there.The survey

of nearly 500 corporate practitioners showed that

whereascorporatecommunicationsteamsandpublic

affairs departments have a high level of integration

with sustainability / corporate social responsibility

(CSR)departmentswithincompanies,finance,investor

relationsandhumanresourcesteamsremainfarless

engaged(SeeFigure3).

Thechallengeaheadwillbetranslatingthevisionof

afewleadingcompaniestothemajorityofbusiness.

Again, Elkingtonexplained, “I think it’s abig stakes

game and many of the C-suite people that I watch

closelyarefindingitverydifficultto…buildthesense

ofconvictionthatthisisthefutureandthey’vegotto

playintoit.They’restillinthisperiodofvacillation.”

Barriers & Levers

CSR CorporateCommunications

PublicA�airs

SupplyChain

CEO’sO�ce

Brand

Operations

Marketing

Legal

R&D

InvestorRelations

HumanResources

Finance

ProductDevelopment

Figure 3: Level of Engagement With CSR/Sustainability Function

(n=498 companies)


As businesses strive to integrate sustainability and

thinklonger-term,itwillbeincreasinglyimportantto

applyalarge,butoftenhiddensystemlever:financial

sectorplayers.

Investors,banksandtheanalyststheyemployto

analyze and value public companies have histori-

cally lagged behind other companies on issues of

sustainability. Matthew Kiernan, Founder and CEO

ofInflectionPointCapitalManagementandInnovest

StrategicValueAdvisors,remembersthemomenthe

noticedthismissingpieceofthesystem.

In1992,heservedasaDirectoroftheWBCSD,un-

derStephanSchmidheiny, then thechiefadvisoron

business and industry to the UN Secretary-General.

SchmidheinyandKiernaninvitedthreeofthetopten

bank chairmen in the world at the time to join the

WBCSD,andtheywereroundlyturneddown.Kiernan

recalled, “That was a very sad commentary on the

awarenessoffinancialmarketsatthattime[of ]sus-

tainability.”

Kiernansuggestsbankshavehadaone-dimensional

view of their role in sustainable development. Be-

causetheirdirectenvironmentalimpactisminimalas

comparedtomostotherindustries,toomanyfeltthey

couldoptoutof thediscourse.But,Kiernan said, “If

you’relookingfortransformationalchange,thecapital

markets,thepurveyorsofthefinancialoxygensupply

ofcompanies,shouldbethefocus.”

ThecreationoftheUNPrinciplesforResponsible

Investment (UNPRI), with signatories who have

$30trillioninassetsundermanagement,indicates

progress. By signing the principles, these inves-

tors acknowledge that environmental, social and

corporate governance (ESG) issues can affect the

performanceofinvestmentportfoliosandtherefore

mustbegivenappropriateconsideration.However,

merelysigningadeclarationleavesplentyofroom

betweenrhetoricandreality.

Barriers & Levers

Is it possible to change ingrained ideas about shareholder value generation?

How can we influence financial institutions and investors to accept longer-term return horizons?

Investors, a Force in Regeneration


Kiernan believes that we must focus increasing

energiesoninfluencingbanks.Heurged,“Ifthecapi-

talmarkets can start sendingmessages about how

importanttheseissuesareforcompetitiveness,profit-

abilityandshareholdervalue,andcommunicatethose

sentimentstocorporatechieftainsinamoreeffective

waythanisbeingdonetoday,then[thatwouldbe]the

most powerful force on the planet for regeneration

and[move]usclosertothesustainabilitynirvanathat

we’dallliketosee.It’sthemostpowerfulsinglelever

thatwehave.”

The Sustainability Survey conducted in December

2011, in collaborationwithUNEP for its forthcoming

reporton thebusinesscase for theGreenEconomy,

reveals that a very largemajority (88%) of the 642

experts polled see pressure for short-term financial

resultsas theprimarybarrier tobusinessbecoming

moresustainable(SeeGraph2).

Barriers & Levers

Youth & Hope

Inadditiontobusinessleadershipandneweconomic

models, the Pioneers point to several reasons to

remainhopefulaboutthejourneyahead.Brightspots

haveemergedintheareasof localgovernmentin-

novation, citizen participation, clean energy and

technologydevelopment.

Many Pioneers acknowledge another bright light

onthehorizon—theconscientious,connectedteens,

twenty- and thirty-somethings that will form future

generationsofleaders.Thiscohorthasgrownupwith

socialentrepreneurs,citizenactivistsandsocialinno-

vatorsasrolemodels.

PioneersseethemobilizationofGenerationYasa

key part of taking the outcomes of Rio+20 forward.

Suzukiexplained, “Youthhave thegreatest stake in

what happens now, because it’s their whole future

that’sgoingtobeaffectedbywhatisorisnotdone…

[they]havetobethemusclepowertotakealotofthe

wisdomfromeldersanddrivethatin.”

Kakabadse agrees that youth will be an impor-

tant part of the roadmap for the future. “I think

theyoungergeneration is theone that feelsmore

threatenedandatthesametimeistheonethatis

reactingmoretowardsthesechallengesandthese

fightsforthefuture,”shesaid.

Graph 2: Barriers to Business’s Transition to Sustainability

TSS_w6_7

Lack of effective management tools/methodologies for business use

Lack of international standards

Low consumer demand for greenbusiness practices, products and services

Low awareness of business imperative among business leaders

Inappropriate regulations

Financial short-termism 88 9 3

65 24 11

65 22 13

57 25 18

50 31 19

45 27 28

Barrier Not a barrier


On the Next FrontierThe Rio+20 Summit has already been rescheduled,

has suffered from a slow accreditation process and

several heads of state showno indication that they

willattend,includingUSPresidentBarackObamaand

BritishPrimeMinisterDavidCameron.

Amidst ambivalence about Rio+20, the Pioneers

remainhopeful.

Millercallsonthosewithinthesustainabilitycom-

munity to bring the rest of theworld along. In our

conversation, he said, “The sustainability commu-

nityhasbeenpushingaropefor20years. It’stime

tolockintoapositive,culturalmessageandimagine

whatapositivelifeexperiencecanhappenwithina

sustainablesystem.”

“Personal engagement, personal commitment,

andbuildingconfidencewithotherpeopleandother

nations istheonlywaytomoveforward,”Madame

Brundtlandsaid.

Steineralsogainsinspirationfromordinarycitizens.

“ThepeoplewhointheArabSpringjustnowstoodup

andsimplysaid, ‘Wewantsomethingdifferent.’The

peoplewhobroughttheBerlinWalldown.Theseare

peoplelikeyouandI,normalpeople,whosimplysaid

webelieve inan ideaandweare ready tostandup

forit.”

This Is About the Long TermTheUNreportResilient People, Resilient Planet clearly

points to actions governments should take.We look

forward to seeing what timelines, goals and action

plansaredraftedattheRio+20Summititself.

Keyinourviewistherolebusinesswillplay.Byvir-

tueof itsowngrowingpowerand the corresponding

decline in theabilityofmanygovernments todeliver

variouspublicgoods,businessisunderrisingpressure

toleadeffortsaimedatsystemschange.Furthermore,

businesshasstartedtorealizeitcannotcontinuetode-

livernarrowlyontheimperativeofshareholderreturn

withoutwiderattentiontothesystemicconditionsthat

determineandsupportitslong-termsuccess.

Desaistates,“Ourhopeisthatpeoplerisebeyond

the immediateproblem.This isnotaboutnextyear,

thisisaboutthelongtermof50yearsor100years.”

The Regeneration Projectaimstoengagebusiness

leadersandkeystakeholdersacrosstheworldonthe

mostpressingsustainabledevelopmentquestionsand

how they apply particularly to theprivate sector.We

lookforwardtoco-creatingaroadmapthatwillindicate

howbusinesscancontributetocreatingresiliencyand

changeintheyearsanddecadesahead.

The Road Ahead

With low expectations for the actual Summit, will we see the commitments necessary to infuse the

sustainable development movement with new energy, new leaders and concrete actions?

Will Rio+20 somehow manage to exceed expectations?


What’s Next

Throughout 2012, The Regeneration Project will explore the past, current and future state of sustainability leadership.

Startingthismonth,wewillreleaseThe Ray Anderson Memorial InterviewsinpartnershipwithGuardian Sustainable Business.Visitwww.guardian.co.uk/ sustainable-business/regeneration toviewthevideosandjointheconversation.Inaddition,throughoutthisyearyoucancheckuponourprogressandbecomepartofthediscussionbyvisitingwww.theregenerationproject.com.

Thisspringandsummer,wewillreleaseaseriesofpublicopinionpollsandstakeholdersurveysrevealingperspectivesonRio+20beforeandaftertheSummit.WewillbepresentinginsightsfromThe Regeneration Projectatavarietyofconferencesincluding:Guardian Sustainable Business QuarterlyinLondoninJune,Sustainable Brands ’12inSanDiegoinJune,NetImpactinBaltimoreinOctoberandSustain Our AfricainCapeTowninOctober.

WelookforwardtoengaginginconstructivedialogueonthegroundduringtheRio+20Summitandhopetomeetlike-mindedpartnersandcollaboratorsduringsideeventsattheSummit.

Lastly,afterRio+20,andafteroursecondwaveofglobalpublicandexpertpollingisconductedinthesummer,GlobeScanandSustainAbilitywillhostanumberofintimateSalonsindiversecitiesworldwidefeaturingstakeholdervoicesfromallsectors.Inthesediscussions,wewillexploreanddiscussthequestionsraisedinthiswhitepaperandforthcomingreleasesfromThe Regeneration Project,andbeginworkonthefinalRegenerationProjectroadmap.

Formoreinformation,visitwww.theregenerationproject.com.

TofindouthowyourorganizationcangetinvolvedinThe Regeneration Project,pleasecontact:

[email protected] +14159440140

or

[email protected]+14169693088


About Us

AboutGlobeScan

GlobeScandeliversevidence,insightsandideasthatbuildvalueforclientsthroughstrongerstakeholderrelationships.Uniquelyplacedatthenexusofreputation,brandandsustainability,GlobeScancombinesrigorousresearchwithcreativeandchallengingthinkingtoinstilltrust,driveengagementandinspireinnovationwithin,aroundandbeyondourclients’organizations.

Formoreinformation,visitwww.globescan.com

About SustainAbility

SustainAbilityisathink-tankandstrategicadvisoryfirmworkingtoinspiretransformativebusinessleadershiponthesustainabilityagenda.Establishedin1987,SustainAbilitydeliversilluminatingforesightandactionableinsightonsustainabledevelopmenttrendsandissues.

Formoreinformation,visitwww.sustainability.com


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Documents

Unfinished Business - GlobeScanThe Regeneration Project Unfinished Business – Perspectives from Sustainable Development Pioneers 3 Foreword This year marks the 25th anniversary of