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Semelhante a Healthy Planet, Healthy People, Healthy Business
Semelhante a Healthy Planet, Healthy People, Healthy Business (20)
Healthy Planet, Healthy People, Healthy Business
- 1. The Objective Healthy Planet, Healthy People, Healthy Business Dan Bena Senior Director, Sustainable Development PepsiCo, Inc.
- 2. The Context • Inspired during a train ride • Completed during a train ride • Published in late 2011 • Musings of a 28-year career (and still raring to go)
- 4. …the inspiration was passion
- 5. But, how did I find it?
- 6. July, 1984—and my conscience In a Pharmacology PhD program doing research with rats …and was asked to “sacrifice” a living rat for research— which gave me pause to examine my conscience
- 7. Complexity of Conscience “…encouraging a sense of ethical, social, and public responsibility.” Religion Philosophy
- 8. Mom’s advice: K.I.S.S. (keep it simple, silly) “When I do good, I feel good; when I do bad, I feel bad. That's my religion.” —Abraham Lincoln
- 9. “Good people [or companies] do not need laws to tell them to act responsibly, while bad people will find a way around the laws.” —Plato
- 10. ..but how does a conscience apply to governments and companies? “…one of the most important Trust is the foundation ways to rebuild the system stronger than before is to rebuild trust stronger than before— and you do not have to wait for a new law to do that.” President Barack Obama, speech to financial community, Federal Hall, New York. September 2009
- 11. Edelman Trust Barometer at a glance Eleventh annual study 5,075 people in 23 countries on five continents Ages 25 to 64 College-educated In top 25% of household income per age group in each country Report significant media consumption and engagement in business news and public policy
- 12. Trust features prominently in reputation; much more so than financial returns Global drivers of reputation
- 13. This is an unprecedented opportunity for ethical companies to demonstrate their corporate conscience…
- 14. …and the “Triple Bottom Line” of sustainability is the perfect channel through which to demonstrate it! Environment Society Environment Society Economy
- 15. The business case seems intuitive to some… “Business cannot succeed in a society that fails.” --Bjorn Stigson, Past President, World Business Council for Sustainable Development “There are many positive ways for business to make a difference in the lives of the poor—not through philanthropy, though that is also very important, but through initiatives that, over time, will help to build new markets.” --Kofi Annan, Former Secretary General to the United Nations
- 16. …and is becoming logical to many Protect the Run the Grow the Business Business Business •By reducing risk •By improving •By strengthening •By reducing costs access to/cost of the license to capital operate •By enhancing productivity •By promoting •By increasing brand revenue growth value/reputation •By raising the quality of people •By improving •By improving market access supply chain •By nurturing knowledge •By stimulating relationships and innovation reliability
- 18. Within Global Operations, we are working to systematize the “Five S” framework of the business case for sustainable development Synchronize the needs of business & society 1 Secure our supply chain & make more resilient 2 Sustain the right to operate from our stakeholders 3 Satisfy consumer demand 4 Synthesize new productivity opportunities 5 …and also about leveraging opportunities to form the foundation for a flourishing business for years to come
- 19. “Business cannot succeed in a society that fails.” Bjorn Stigson, former President WBCSD Synchronize the needs of business & society Contributed more than $40 Provided 57,000+ hours of million to people in need education to farmers Bringing safe water to 3MM people Improving farmer yield and fighting malnutrition 1
- 20. Our supply chain depends on a healthy environment & healthy people; agriculture represents major opportunities for resilience & risk reduction Secure our supply chain & make more resilient 2
- 21. Stakeholders are raising the bar in terms Sustain the right to operate from our stakeholders of what they expect from companies; we must continually earn the right to operate & grow Material Risk Customer Risk Regulatory/NGO Risk Environmental risks are increasingly seen as material to businesses 2009: Launched Sustainability Index and Sustainability Consortium 2009: Released first Corporate Sustainability Report • Environmental risks • FLNA: 1% point loss at • Increasing costs to increasingly included in WMT equals significant $$ comply with regulation • PepsiCo’s reputation tarnished 3 companies’ 10K filings in court of public opinion
- 22. Consumer opinions are becoming more vocal, clear, and consistent Consumers feel better about our Brands when we protect 9,000 the environment PepsiCo consumers across nine countries sumer demand Environment drives PEP favorability Our environmental performance gives us credibility to talk about other areas, like nutrition
- 23. Environmental sustainability unleashes significant productivity opportunities across PEP Synthesize new productivity opportunities Recyclable Beverage Packaging Bio Mass / Gas High MPG Fleet Seasoning Bags Membrane Heat Recovery Power Partnerships Green Coolers Bioreactors
- 24. We are doing great things, and are being recognized
- 25. ility is good Sustainable Business v Harvard, November 2011 Performance of companies with High and Low cultures of Sustainability
- 26. Closing thoughts: I promised you career “musings” 1. Make people part of the process —from the beginning 2. Sometimes, it’s okay not to be “buttoned up” 3. Better to be the driver holding the reigns than the stallion pulling the coach 4. Learn how to articulate your passion 5. Go with your “gut feeling”
Notas do Editor
- VALUE The value case for sustainable development is easy to make as the benefits to business are clear. And there are plenty of them: lower risk, brand strength, reduced costs, motivated employees, and potentially more profits. For the sake of simplicity, the main success factors have been arranged under three headings
- First, it’s critical to not only to strengthen our license to operate, but also our license to grow. PepsiCo believes that we have an obligation to r espect and responsibly use the natural resources in our businesses and in the local communities we serve, and you see examples here. Our partner, Safe Water Network, where I serve on the Board, launched several new initiatives as part of its commitment to bring safe water to 250,000 people in need. With the funding of the PepsiCo Foundation, these programs included water health centers in Ghana and construction of over 1,000 rainwater harvesting cisterns in India. Last year, we started an innovative partnership in Ethiopia with the USAID, the UN World Food Program and nearly 10,000 farmers of chick peas. We aim to double the chick pea yield, enhancing our supply chain, and also working with the UN to develop a locally sourced nutritious food to help fight childhood undernutrition.
- Second, environmental sustainability is absolutely crucial to secure our supply chain. You can see many global statistics and troubling trends on this slide, but it really hits home when you consider that six out of 10 of PepsiCo’s top raw materials come from an agricultural plant. We need to grow our crops and manage our farms wisely and responsibly to reduce significant risks to the business.
- Third, the expectations of stakeholders are higher than they have ever been. Companies are recognizing environmental risks as material to their business, and disclosing these risks publicly to the SEC. There is also the customer risk—but also tremendous opportunity—by doing environmental sustainability well…and we have good experience with Walmart, Costco, and many other customers. Finally, there are increasing regulatory risks related to environment that businesses will continue to face, from water quality challenges to carbon and GHG regulations.
- Fourth, consumers are very clearly telling companies what they want, and what matters to them…and environmental stewardship matters. On the upper left, you see the results from an internal study of 9,000 consumers across nine countries. We asked them what would make them feel better about our major brands…and their replies included responsible resource use, helping farmers, and minimizing waste—all things that our Operations teams deal with on a daily basis! On the bottom right, you see a chart from our Corporate Reputation Initiative, which tells us that the top six things driving PepsiCo’s overall reputation are environmental.
- Last, and this is something that every one of you in the audience knows from experience…environmental sustainability provides unmatched opportunities for productivity improvements across our business. You can see just some of the examples here.
- There is a need for environmental sustainability—which we, as operations professionals—have known all along. The good news is that others outside of operations are beginning to better understand this as well. On the lower right you see a chart from a very recent Harvard study—late last year. The professors showed a strong and clear correlation between companies that embed sustainability into their corporate culture, and superior financial performance in the market. Simply put, sustainability is good business.