The North Star of Sustainability Goal-Setting: Introducing the Future-Fit Business Benchmark

The North Star of Sustainability Goal-Setting: Introducing the Future-Fit Business Benchmark

Geoff Kendall@FutureFitBizCEO & Co-Founder

Future-Fit Foundation

Christopher Davis@TheBodyShopDirector of Inernational Corporate Responsibility and CampaignsFuture-Fit Foundation

Dr Geoff KendallFuture-Fit Foundation

CEO & Co-Founder

FutureFitBusiness.org

Chris DavisThe Body Shop

International Director of Corporate Responsibility and Campaigns

TheBodyShop.com

Future-FitBusiness Benchmark

ANITA RODDICK CREATED AN

AMAZING COMPANY

2

WEHOW CAN WE MAKE A DIFFERENCE OVER THE NEXT 40 YEARS?

HOW CAN WE MAKE A DIFFERENCE OVER THE NEXT 40 YEARS?

HADEAN4,500 MILLION YEARS AGO

ARCHEAN 4,000 MILLION YEARS AGO

11,700K

4,500M

4,000M

1,000M 50

126K

72M

200M

400M 7M

500M

300M

NEOPROTEROZOIC1,000 MILLION YEARS AGO

11,700K

4,500M

4,000M

1,000M 50

126K

72M

200M

400M 7M

500M

300M

CAMBRIAN500 MILLION YEARS AGO

11,700K

4,500M

4,000M

1,000M 50

126K

72M

200M

400M 7M

500M

300M

SILURIAN400 MILLION YEARS AGO

11,700K

4,500M

4,000M

1,000M 50

126K

72M

200M

400M 7M

500M

300M

CARBONIFEROUS300 MILLION YEARS AGO

11,700K

4,500M

4,000M

1,000M 50

126K

72M

200M

400M 7M

500M

300M

CARBONIFEROUS300 MILLION YEARS AGO

11,700K

4,500M

4,000M

1,000M 50

126K

72M

200M

400M 7M

500M

300M

JURASSIC200 MILLION YEARS AGO

11,700K

4,500M

4,000M

1,000M 50

126K

72M

200M

400M 7M

500M

300M

CRETACEOUS72 MILLION YEARS AGO

11,700K

4,500M

4,000M

1,000M 50

126K

72M

200M

400M 7M

500M

300M

NEOGENE7 MILLION YEARS AGO

11,700K

4,500M

4,000M

1,000M 50

126K

72M

200M

400M 7M

500M

300M

PLEISTOCENE126K

YEARS AGO

11,700K

4,500M

4,000M

1,000M 50

126K

72M

200M

400M 7M

500M

300M

HOLOCENE11,700K

YEARS AGO

11,700K

4,500M

4,000M

1,000M 50

126K

72M

200M

400M 7M

500M

300M

ANTH

ROPO

CENE

11,700K

4,500M

4,000M

1,000M 50

126K

72M

200M

400M 7M

500M

300M

HOW CAN WE MAKE A DIFFERENCE OVER THE NEXT 40 YEARS?


Environment

Wemustrethinkhowwedo– andvalue– business

Environment

Society

BusinessEnvironment Society

Business

Society

ShareholderValue SharedValue SystemValue

Business

Businessisallthatmatters:privatizegains,socializelosses

Businesscomesfirst:negativeimpactsarejustifiedby‘doinggood’elsewhere

Businessreaches/passesthesocialandenvironmental‘breakevenpoint’

“AllIaskisatallshipandastartosteerherby”

JohnMasefield (1878-1967)

Future-FitBusinessAbusinessthatcreatesvaluewhileinno

wayundermining– andideallyincreasing–thepossibilitythathumansandother

lifewillflourishonEarthforever




Inasustainable society,natureisnotsubjecttosystemicallyincreasingconcentrationsof

minedsubstances

Inasustainable society,natureisnotsubjecttosystemically

increasingdegradationbyphysicalmeans

Inasustainable society,people arenotsubjecttosystemicbarrierstohealth,influence, impartiality,

competenceandmeaning

Inasustainable society,natureisnotsubjecttosystemicallyincreasingconcentrationsof

substances producedbysociety

Thestartingpoint:Earthasasystem

Environment

Society

CompanyResources

PhysicalPro

ducts

Waste

Presen

ceOpe

ratio

nal

Communities

Customers

Employees

Suppliers

Whatmust a‘typicalcompany’

do,intermsofits

interactionswith

keystakeholders...

…toensureitinno

waybreachesthe

systemconditions

fora sustainable

society?

KeyQuestionforRelease1:Whatmust everybusinessdotobecomefuture-fit?

Fromsystemsthinkingtoapracticaltool

KeyFitness

Indicators

Themeansto

measure,manageandcommunicateprogresstoward

eachfuture-fitgoal.

Global

Challenges

Environmental

andsocioeconomicissueswemustaddressifweare

totransitiontoasustainablefuture.

System

Conditions

Ascience-based

definitionofhowsocietymustoperateifitis

tobecometrulysustainable.

Business

Principles

Howcompanies

mustoperateiftheyaretobepartofsucha

trulysustainablesociety.

Future-Fit

Goals

21performance

thresholdsthateverycompany

mustreachtohelp

(andnothinder)society’stransition.

AlignmentTools

Toolstomapthepursuitoffuture-fitnessonto

SDGs,CircularEconomyandother initiatives

Energyisfromrenewablesources

Waterisusedinanenvironmentallyresponsibleandsociallyequitableway

Future-FitGoal

ß NegativeImpact

Productsdonotharmpeopleortheenvironment


Release1(May2016):“DoingNoHarm”Afree-to-use,sector-neutraltoolthatdefinestheextra-financialbreak-evenpointforbusiness,plusmetricstomeasureandmanageprogresstowardit





wayundermining– andideallyincreasing –thepossibilitythathumansandother


Environment

Society

CompanyResources

PhysicalPro

ducts

Waste

Presen

ceOpe

ratio

nal

Communities

Customers

Employees

Suppliers

Whatcana‘typicalcompany’

do,bothinand

beyonditsown

valueweb...

…toincreasethe

future-fitnessof

othersandthusof

thesocioeconomic

systemasawhole?

KeyQuestionforRelease2:Howcan abusinesshelpotherstobecomefuture-fit?

Release2(2017):“CreatingSystemValue”Afree-to-use,sector-neutraltooltoassessallofthewaysinwhichabusinesscan(negativelyand positively)impactsocietyandtheenvironmentinacredible,comparableway


Productsmeetabasicneedofunderservedcustomers

Energyisfromrenewablesources

Waterisusedinanenvironmentallyresponsibleandsociallyequitableway

Productsdonotharmpeopleortheenvironment

Interventionsimprovepeople’shealth

Future-FitGoal

PositiveImpactà

ThesearesamplerestorativemetricsTBC

ß NegativeImpact

…evenifyouhave‘agoodstory’foroneorsomeofthem

Getstarted:seehowyoumatchupagainstallSDGs…

Getstarted:giveyourbusinessmodelafuture-fithealthcheck

Future-FitBusiness BenchmarkFutureFitBusiness.org

Goals relating to

the environment,

communities and

employees also apply

to a company’s core suppliers Future-Fit

Business Benchmark

Community concerns

are actively solicited,

impartially judged

and transparently

addressed

Future-Fi

t

Business Benchmark

1 goal specific to communities

7 goals specific to the environment5 goals specific to employees

5 goals specific to customers

All goals relating to the environment, employees

and communities extend to certain suppliers too

3 goals specific to society as a whole

Future-FitBusiness BenchmarkMaterials derive

from sources that

respect the welfare

of ecosystems, people and animals


Every company relies to some extent upon third-party suppliers – as, in turn, do they. Such interdependencies leads to extremely complex supply chains. So where should mutual accountability for supplier impacts end?A future-fit company takes responsibility for any impact resulting from the provision of supplied goods or services if their absence would seriously affect its business. We consider two types of such core suppliers:• Outsourced functions: A company is mutually accountable for the

operational impacts of any direct supplier to whom it outsources core business functions (e.g. customer support, manufacturing, logistics).

• Product inputs: A company that sells goods (or services whose delivery requires goods to be consumed) is mutually accountable for all cradle-to-gate operational impacts caused by the creation of its product inputs (raw materials and their derivatives).Future-fit goals relating to operations (grouped under the environment,

employees and communities) must ultimately be reached by all of a company’s core suppliers if the company as a whole is deemed to be future-fit. That’s because a company’s ability to create value depends on the actions – and thus impacts – of its core suppliers. Future-FitBusiness Benchmark

…equipsbusinessleaderswithacleardestinationtoaimfor

…inspiresandhighlightstruesustainabilityleadership

…offers actionableinsight onnature/sizeofperformancegaps

…putspurposeincontexttoengageandexcitestakeholders

TheFuture-FitBusinessBenchmark…

…helpsbusinessmakesenseoftheSDGs andotherinitiatives

EMIT NOTHING THAT HARMS SOCIETY OR THE ENVIRONMENT

PRODUCTS HAVE NO NEGATIVE ENVIRONMENTAL IMPACT DURING USE AND AT END OF LIFE

SOURCE EVERYTHING WITHOUT HARMING SOCIETYOR THE ENVIRONMENT

STRATEGY INSPIRED BY THE FUTURE-FIT BUSINESS BENCHMARK

DO NOT DISRUPT ECOSYSTEMS WHERE WE ARE PRESENT

HELP CREATE THRIVING COMMUNITIES WHERE THE BUSINESS OPERATES

INSPIRE CUSTOMERS TO CARE FOR EACH OTHER AND THE ENVIRONMENT

CREATE A WORKING ENVIRONMENT WHEREALL EMPLOYEES FLOURISH

STRATEGY INSPIRED BY THE FUTURE-FIT BUSINESS BENCHMARK

THE WORLD’S MOST ETHICAL

AND TRULY SUSTAINABLE

GLOBAL BUSINESS

A NEW PLANINSPIRED BY SEVEN

PRINCIPLES

[inserthere]

whileinnowayundermining– andideallyincreasing–

thepossibilitythathumansandotherlifewillflourishonEarthforever

Thepurposeofmybusiness isto

Howareyoustrivingtocreatesystemvalue?

Dr Geoff KendallFuture-Fit Foundation

CEO & Co-Founder

FutureFitBusiness.org

Chris DavisThe Body Shop

International Director of Corporate Responsibility and Campaigns

TheBodyShop.com
