The North Star of Sustainability Goal Setting and Leadership: How to Build a Future-Fit BusinessGeoff KendalFuture-Fit Foundation@FutureFitBiz
Christopher DavisThe Body Shop International@TheBodyShop
Giles HutchinsFuture Fit@GilesHutchins
NEOPROTEROZOIC1,000 MILLION YEARS AGO
11,700K
4,500M
4,000M
1,000M 50
126K
72M
200M
400M 7M
500M
300M
Environment
Wemustrethinkhowwedo– andvalue– business
Environment
Society
BusinessEnvironment Society
Business
Society
ShareholderValue SharedValue SystemValue
Business
Businessisallthatmatters:privatizegains,socializelosses
Businesscomesfirst:negativeimpactsarejustifiedby‘doinggood’elsewhere
Businessreaches/passesthesocialandenvironmental‘breakevenpoint’
Future-FitBusinessAbusinessthatcreatesvaluewhileinno
wayundermining– andideallyincreasing–thepossibilitythathumansandother
lifewillflourishonEarthforever
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
Future-FitBusiness Benchmark
Release1(May2016):“DoingNoHarm”Afree-to-use,sector-neutraltoolthatdefinestheextra-financialbreak-evenpointforbusiness,plusmetricstomeasureandmanageprogresstowardit
Future-FitBusinessAbusinessthatcreatesvaluewhileinno
wayundermining– andideallyincreasing–thepossibilitythathumansandother
lifewillflourishonEarthforever
Future-FitBusinessAbusinessthatcreatesvaluewhileinno
wayundermining– andideallyincreasing –thepossibilitythathumansandother
lifewillflourishonEarthforever
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
Future-FitBusiness Benchmark
Productsmeetabasicneedofunderservedcustomers
Energyisfromrenewablesources
Waterisusedinanenvironmentallyresponsibleandsociallyequitableway
Productsdonotharmpeopleortheenvironment
Interventionsimprovepeople’shealth
Future-FitGoal
PositiveImpactà
ThesearesamplerestorativemetricsTBC
ß NegativeImpact
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
Future-FitBusiness Benchmark
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?
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