Singing in the Rainunderstanding the umbrella of

sustainability

Nick Betts M.B.A.Business Management Specialist | Economic Development Division

“Development that meets the needs of the present without compromising the ability of future generations to meet

their own needs.”Gro Harlem Brundtland

Prime Minister, Norway (1981, 86-89, 90-96)World Commission on Environment & Development (1983-87)

Director-General, World Health Organization (1998-2003)

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Development of Current State (Agriculture)

Chemical Factors

Bio- FactorsPhysical Factors

Soil Quality

Air QualityWater Quality

Environ Quality

Economic Viability

Social Respon-sibility

Soil Quality Environmental Quality Agricultural Sustainability

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“We live today in an age of sustainababble, a cacophonous

profusion of uses of the word sustainable to mean anything from

environmentally better to cool.”

Robert EngelmanWorld Resources Institute

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Sustainability may be defined as a values-laden umbrella concept

about the way in which the interface between environment & society

(including its institutions & individual members) is managed to ensure that human needs are

met without destroying the life supporting ecosystems on which we depend.

Wayne VisserThe Age of Responsibility

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Animal Welfare

Anti-corruptionCommunity Involvement & Philanthropy

Consumer Health, Safety, Privacy, or Support

Education or CultureEmployee Ethics

Employment Creation

Fair competition

Stakeho lder Dia logue Capacity-Building

Pollution Prevention

Clean Technology

Climate Change

Fair Taxation

Gender

Diversity & Non-discrimination

Sustainable Resource Use

Human Rights & Security

Intellectual Property & Access to Technology

Sustainabili ty Reporting

EnvironmentGovernance & Risk

Public Health

Fair Supplier Relations

Social En te rp r ise

Fair Marketing

Labour Practices

Political InvolvementSocial Di al og u e

Respons ible Inve stment

Social Development

Human DevelopmentWork Health & Safety

(Economic Inequality)

“Sustainability”

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RESPECT

EQUITY

TRANSPARENCY

TRUST

MUTUTAL BENEFIT

SUSTAINABILITY

Because it leads to

Because it leads to

Because it leads to

Key Principles

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Internal Intangible

Stakeholder Intangible

Supply Chain Tangible

The 7 Drivers for (Voluntary) Sustainability

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Cost Reduction

Resource Conservation

Talent Attraction, Retention, Motivation

Satisfying Customer

Needs

New Business

Opportunities

Capital and Social

Investment Attraction

Legal Compliance/

Activism

Sustainability is the strategic philosophy used to change action and plan for the future;

Social responsibility the responsibility to be communicate these actions appropriately.

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Corporate Social Responsibility vs Sustainability

CSR Sustainability

Vision Looks backwardsReports actions

Looks forwardsPlans change

Targets Opinion-formers (advocates, media)

Value chain management(suppliers to consumers)

Business Compliance Business practice

Management Communications Operations/Marketing

Reward Stakeholders Citizenry

Drive Social CapitalExisting market reputation

Emerging markets opportunities

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A brand is no longer what we tell the consumer it is – it is what

consumers tell each other it is.

- Scott D. Cook, CEO Intuit

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Social License: Consumer Response

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Why?

1. Hyper-globalization

2. Easy & affordable communication

3. Product customization

4. Demographics

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1. Hyper-globalization

• Trade integration– Significant decrease in information and

communication costs– Fragmentation of manufacturing across borders– Individual production stages geographically

corresponds to lowest COP– Rise in multinational corporations (>80,000) and

foreign direct investment• Accounts for 67% of world trade

Source: Subramanian & Kessler, 201316

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2. Communication

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3. Product Customization

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4. Demographics: shifting expectations

New Consumers & Decision-makers20

4. Demographics: urbanization

World Health Organization21

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What to Expect: Sustainability Standards

• Strong environmental and social focus

• Little emphasis on management (economics)

• Implications for public sector?

Expectations

• Obligation demonstrates sector is in reactionary state

• When will shift to proactive strategy occur?

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Sustainable Agriculture

"Sustainable agriculture is the efficient production of safe, high quality agricultural

products, in a way that protects and improves the natural environment, the social and economic conditions of farmers, their

employees and local communities, and safeguards the health and welfare of all

farmed species."

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“The significant problems we face cannot be solved at the same level of thinking

we were at when we created them.”Albert Einstein