Quarterly Member Insights: See Our Changing World More …
Transcript of Quarterly Member Insights: See Our Changing World More …
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Quarterly Member Insights:
See Our Changing World More ClearlyWebinar | BSR Connect
© 2021 Business for Social Responsibility
Speakers
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Aron Cramer
President and CEO
San Francisco
Elisa Niemtzow
Vice President, Consumer Sectors and Global Membership
Paris
L. Simone Washington
Director of Diversity, Equity, and Inclusion
New York
David Wei
Managing Director
New York
2021: Optimism and Resolve for the Decisive Decade
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Business transformation to create resilient
business strategies and meet ESG
objectives
Decisive climate action to translate
commitments into real change
Creating an economy that is truly inclusive
In 2021, we are focusing on three broad areas to enable our member companies to create strategic value
and contribute to a just and sustainable world.
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01Resilient Business Strategies
BSR Report
Resilient Business Strategies
Decisive Action for a Transformed World
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Why Resilience, and Why Now? The changes remaking our world demand bold, urgent action. Integrating sustainability into a
business’ core strategy is no longer sufficient. It’s time to focus on resilient business strategies,
which will lead to nimbler, more innovative companies, which achieve long-term value for all
stakeholders, and deliver on the promise of a just and sustainable world.
How Do We Define Resilience?A resilient business is prepared to capture strategic advantage and contribute to the realization
of thriving societies by anticipating material changes to the operating environment;
developing and testing strategic plans in the context of such changes; and allocating resources
and creating value in ways that enables success in multiple potential futures.
A resilient society has the capacity to anticipate and adapt to change in a way that enables
human well-being, thriving and just institutions, full and equal participation in society and the
economy, and preservation of the natural and built environment.
Responding to the Challenge: The Building Blocks of Resilient BusinessThe building blocks of resilient business strategy include corporate governance, financial capital
deployment, management of natural capital resources, product development and business
models, the built environment, supply chains, human resources, and public policy advocacy.
To discuss and learn
more about how we
can help your
company become
more resilient,
contact us at
Read the full report
The Building Blocks of Resilient Business Strategies 1/2
Resilient business strategies call for a fresh look at many, if not all, elements of business.
Governance needs an
overhaul to ensure that
resilient business strategies
are established and
implemented in a way
consistent with a broader
purpose than merely short-
term value for shareholders
and with more diverse
perspectives shaping the
approach.
Financial capital
deployment should shift to
ensure forward-looking
investments that will
produce value in anticipation
of changed market
conditions and societal
expectations and to enable
greater financial stability and
long-term returns.
Natural capital
management is essential to
ensure that access to
natural resources is stable
and well managed, with a
focus on climate,
biodiversity, water, and
other crucial natural
resource inputs necessary
for business.
Product and business
model development
should also shift to
address emerging market
needs and requirements,
rather than relying on
legacy opportunities that
are most vulnerable to
disruption.
The Building Blocks of Resilient Business Strategies 2/2
Resilient business strategies call for a fresh look at many, if not all, elements of business.
Built environment
investments should be
designed to meet fast-
growing demand in ways
that enable access,
minimize use of natural
resources, are tied to
zero-carbon
transportation, and are
able to withstand
extreme weather.
Supply chains are a core
element of a resilient
enterprise and depend on
rethinking all aspects of the
process, from product
design to raw material
procurement to processing
to distribution, and includes
sourcing decisions, supplier
finance, and worker well-
being and livelihoods.
People strategies will
need to modernize to
achieve skill
development, career
pathways, and greater
equity for an increasingly
diverse workforce with
changing expectations,
comprised of people who
will change jobs and
careers multiple times.
Public policy efforts should
shift away from being
reactive toward an approach
that actively promotes
modernization of the social
contract, decisive action on
climate, and capital market
reforms that promote long-
term value creation for all
stakeholders. Policy
engagement should also be
significantly better aligned
with stated ESG
commitments.
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Resilient business
strategies
• Provide insight on the value of Resilient Business strategies
• Help shape resilient business strategies with our ’building blocks’
• Test resilience through our Futures scenarios
• Catalyze collective action with a focused group of like-minded leaders willing to showcase the value of resilient businesses for a just and sustainable world
Contact us [email protected] to discuss how your company can become more resilient.
How BSR Can Help
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02Climate Insights
What will corporate climate action look like in 2025?
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In 2025 net zero goals
will be ubiquitous.
Some will be
implemented largely by
the purchase of carbon
credits. Others will be
implemented through
business transformation
affecting many corporate
functions.
In 2025 TCFD
implementation will be
ubiquitous and often
required by regulation.
Some companies will
treat this as a disclosure
exercise, while others
take the opportunity to
change their risk
management processes
and plans.
In 2025 some leading
companies will
differentiate themselves
by striking simultaneously
at climate and social
objectives.
In 2025 more corporate
environmental strategies
will claim to benefit the
environment more than
they harm it.
Objective, science-based
methodologies will be
applied not only to
climate/GHG goals, but
potentially to water,
biodiversity, oceans, and
land.
Net Zero TCFD
ImplementationClimate Justice
“Regenerative”
companies
A resilient climate strategy is one that will stand the test of time. The COVID-19 pandemic has shown us
how difficult it is to forecast the future. But the BSR climate team observes and is guided by the following
trends.
The Taskforce on Climate-related Financial Disclosures
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What are they?
• The recommendations are intended to
provide decision-useful information to
lenders, insurers, and investors.
• The recommendations are for
disclosures in mainstream financial
filings (e.g., 10-K), although disclosures
typically occurs in the sustainability
report, a specialized climate report, or
the annual report.
Why implement them?
• The TCFD recommendations are publicly supported by 1,900
organizations, largely companies and investors in 78 countries.
• Regulators may make some implementation mandatory, for example:
• Following the US SEC consultation on climate disclosure;
• Following the UK BEIS consultation on mandatory TCFD climate disclosure;
• Through the EU non-financial reporting directive;
• As introduced in New Zealand;
• Through Article 173 of the French Law on Energy Transition and Green
Growth
Convened under the G20 and chaired by Michael Bloomberg and Mark Carney, in 2017 the TCFD published
recommendations on how companies should disclose on climate risks and opportunities.
Widespread adoption has made the TCFD recommendations a new norm for the disclosures and management of climate risks and opportunities.
A NEW NORM
Source: TCFD, Final Recommendations
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Climate justice prioritizes the people and
communities that are most likely to be affected by
the climate crisis – such as physical climate impacts,
the energy transition and climate solutions – but are
least responsible for it.
Climate justice places people and equity, considering
gender, race, disabilities, sexual orientation, age,
and others, at the center of climate solutions.
What is Climate
Justice?
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03Diversity, Equity and Inclusion Insights
Emerging Trends in DEI
Since the unprecedented events of 2020 and linger impacts of COVID-19, companies are being urged to
double down on their commitments to DEI and move beyond the representational aspects to deliver on full
scale transformation.
EEO-1 Reporting Disclosures Intersectionality of IssuesCorporate Advocacy &
Activism
Businesses are moving towards greater transparency in reporting DEI related, adopting an intersectional
approach to tackling social issues, and leaning into their roles a community stakeholders to drive change at
the policy level.
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04Bonus Member Insights
Bonus Member Insights
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EU Mandatory
Due Diligence
Legislation
Double
Materiality
Employee
Mental Well-
being and
Resilience
Generation
Equality Forum
Progress on
Transparent and
Resilient
Sourcing
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05Q&A
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Thank you to our SPARK members
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BSR Upcoming Event
WEBINAR
Connected Clothing: Digital Innovations to Advance Circularity
April 29, 2021
For a full list of upcoming events, visit: bsr.org/events
WEBINAR
Quarterly Member Insights: See Our Changing World More Clearly (Asia)
May 11, 2021
WEBINAR
Quarterly Member Insights: See Our Changing World More Clearly (Japan)
May 13, 2021
Thank YouBSR™ is an organization of sustainable business experts that works with its
global network of the world’s leading companies to build a just and
sustainable world. With offices in Asia, Europe, and North America, BSR™
provides insight, advice, and collaborative initiatives to help you see a
changing world more clearly, create long-term business value, and scale
impact.
www.bsr.org
© 2020 Business for Social Responsibility