i People, Planet, Profit ii iii People, Planet, Profit How to embrace sustainability for innovation and business growth Peter Fisk iv Publisher’s note Every possible effort has been made to ensure that the information contained in this book is accurate at the time of going to press, and the publishers and author cannot accept responsibility for any errors or omissions, however caused No responsibility for loss or damage occasioned to any person acting, or refraining from action, as a result of the material in this publication can be accepted by the editor, the publisher or the author First published in Great Britain and the United States in 2010 by Kogan Page Limited Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act 1988, this publication may only be reproduced, stored or transmitted, in any form or by any means, with the prior permission in writing of the publishers, or in the case of reprographic reproduction in accordance with the terms and licences issued by the CLA Enquiries concerning reproduction outside these terms should be sent to the publishers at the undermentioned addresses: 525 South 4th Street, #241 120 Pentonville Road London N1 9JN Philadelphia PA 19147 United Kingdom USA www.koganpage.com 4737/23 Ansari Road Daryaganj New Delhi 110002 India © Peter Fisk, 2010 The right of Peter Fisk to be identified as the author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988 ‘LEED’ and related logo is a trademark owned by the U.S Green Building Council and is used by permission FSC logo © 1996 Forest Stewardship Council A.C The FAIRTRADE Mark reproduced with kind permission of the Fairtrade Foundation This book was produced using sustainable materials and printed on 100% recycled paper with no environmentally damaging chemicals used for bleaching 978 7494 5411 ISBN E-ISBN 978 7494 5863 British Library Cataloguing-in-Publication Data A CIP record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data Fisk, Peter (Peter Robert)   People, planet, profit : how to embrace sustainability for innovation and business growth / Peter Fisk    p cm   Includes index   ISBN 978-0-7494-5411-1 ISBN 978-0-7494-5863-8  1.  Social responsibility of business 2.  Industrial management Environmental aspects 3.  Corporations Growth 4.  Social responsibility of business Case studies 5.  Industrial management Environmental aspects Case studies 6.  Corporations Growth Case studies.  I Title   HD60.F535 2010   658.4’083 dc22 2009048339 Typeset by Saxon Graphics Ltd, Derby Printed and bound in Great Britain by MPG Books Ltd, Bodmin, Cornwall v For Anna and Clara vi vii Contents Introduction: People and Planet and Profit The People, Planet, Profit Manifesto Part 1: Rethinking business 10 13 My world: Kris, the Indian computer engineer My world: Claire the South African banker My world: Grant, the American entrepreneur 14 15 16 Purpose beyond profits Making people’s lives better Defining an inspiring purpose Turning promises into reality Google and Microsoft: finding purpose in a digital world People, planet, profit: the reality of purpose 17 19 21 24 26 30 Strategies for growth Finding markets with sustainable growth Creating differentiation by doing good New business models for a new business world Apple and Nokia: being cool in a caring world People, planet, profit: the reality of strategy 36 39 42 43 45 49 Inspiring leadership Leaders of the new business world Leaders as the catalysts of change What it means personally 56 58 61 62 viii  Contents Patagonia and Timberland: reaching new heights People, planet, profit: the reality of leadership Part 2: Reconnecting business 64 67 71 My world: Sugito, the Japanese salesman My world: Ash, the young Singapore journalist My world: Summerly, the London art gallery owner 72 73 74 Conscience consumers Enabling people to be good The new consumer agenda Segmenting the conscience consumers Coca-Cola and Danone: seeing a different side of life People, planet, profit: the reality of consumers 75 78 81 82 85 89 Sustainable innovation Social and environmental drivers of innovation Innovating every aspect of business The creative potential of social entrepreneurs Amazon and eBay: redefining markets through innovation People, planet, profit: the reality of innovation 91 94 97 99 102 104 Engaging consumers Engaging people through enlightened dialogue Building networks to more together The ‘good’ consumer experience Marks & Spencer and Wal-Mart: retail revolutionaries People, planet, profit: the reality of engagement 109 111 113 116 118 122 Part 3: Releasing business 127 My world: Biki, the Barcelona mother My world: Stuart, the London advertising exec My world: Nicky, the Hong Kong banker 128 129 130 Sustainable operations Working better together Good sourcing, transporting and producing The power of sustainable energy and technologies Adidas and Nike: no finish line People, planet, profit: the reality of operations 131 132 134 137 138 141 Contents  ix Delivering performance Certification, labels and sustainable impacts Linking sustainability to business results Managing business performance and reputation News Corporation and Time Warner: beyond print People, planet, profit: the reality of performance 145 147 153 156 158 163 Transforming business Making sustainable change happen Articulating the case for change Managing the implementation Ikea and Interface: good living People, planet, profit: the reality of transformation 166 168 170 171 174 178 10 Emerging futures Leading in the new business world Sustainable innovation and lifestyles Business as a force for positive change 182 184 187 194 Part4: Resources 197 The People, Planet, Profit A to Z The People, Planet, Profit blueprint The People, Planet, Profit directory The People, Planet, Profit programme 198 204 204 210 Authors and contributors 212 Index 218 216  People, planet, profit Colin le Duc, Generation Investment Management Colin is the senior portfolio manager for the Generation IM climate solutions strategy Prior to co-founding Generation, Colin was research director at Sustainable Asset Management in Zurich, Switzerland At SAM, he ran the analyst team conducting sustainability research on large-capitalization companies globally with the aim of selecting companies for the Dow Jones Sustainability Indexes and SAM’s actively managed sustainable investment funds He has also worked for Arthur D Little in London as a strategy consultant Nigel Morris, Aegis Nigel is CEO of Isobar, the digital marketing division of Aegis For almost five years he has been leading the growth, integration and overall strategy of Isobar, which has evolved into the world’s largest digital advertising network in 38 countries In 2005 he was voted one of Advertising Age’s Top 10 Global Marketers to Watch, and in 2006 he was listed at number four in Revolution magazine’s Power 50 Nigel is also a frequent speaker at events such as the World Economic Forum and Cannes advertising festival David Nussbaum, WWF David Nussbaum joined WWF in the UK as chief executive in May 2007 He is also a non-executive director of the quoted private equity fund, Low Carbon Accelerator, and of the leading fair-trade finance company, Shared Interest Until 2006, he was the (non-executive) chair of Traidcraft, the leading UK fair-trade company He is also a member of the Council of the RSA David Singleton, Arup David is chairman of Arup’s Global Infrastructure Business He joined Arup in 1973 and is currently a member of the group board and chairman of the Arup Partnerships He guides the delivery of sustainable solutions valued by clients, communities and end users of Arup’s infrastructure services In addition to his other global responsibilities, David also holds the group board portfolio for corporate sustainability Dilys Williams, London College of Fashion Dilys is the director for sustainable fashion at LCF She has worked in the fashion industry as a womenswear designer with the likes of Katharine Resources  217 Hamnett and Stella McCartney for almost 20 years She is the course director for MA Fashion and the Environment and sits on the steering panels of a number of organizations including Made By, Fashioning an Ethical Industry and the RITE Group Thanks The author would like to thank each contributor for their fabulous insights Additionally, thanks to the many others who made this book possible: editor Jon Finch and Helen Savill at Kogan Page, literary agent Simon Benham at MayerBenham, Reinier Evers at Trendwatching, the research team at Green Sky Thinking, Carl Sharples at Co-operative Financial Services, Mark Thomas at PA Consulting Group, and the team of sustainability experts at Clownfish – including Laurence MacSween, Katie Chapman, Becky Willan, Carolin Schramm and Hannah Lane – for all their great support More details, links and downloads are available at www.PeopleandPlanetandProfit.com 218 Index NB: page numbers in italics indicates a figure or table Adidas  138, 139–40, 141 Grün  140, 141 Aegis  35, 53, 90, 165, 216 ‘affluenza’  76 Africa  7, 80 Al Jabar, Sultan  183 ‘albedo flip’  187–88 algae  138 Amazon  97, 102–03 business model  102 Kindle  103, 104 Ambani, Mukesh  97–98 Anderson, Ray  124, 175–76 Apple  45–47, 48 Arup  32–33, 54, 68, 107, 123–24, 164–65, 181, 216–17 supply chain  143 Arvind Eye Care System  45  Ashoka  100, 104, 205 asset utilization  155 authenticity  198 Bahrain World Trade Center  194 ‘Balanced Scorecard’  153 inputs  154 outputs  154 throughputs  154 Bangladesh  44 Barker, David  88 Beauty Engineered Forever  193 Belize Sugar Cane Farmers’ Association  143 Ben & Jerry’s  111 Bill and Linda Gates Foundation Trust  29 biochar  138 biodegradable  198 biodiesel  198 biodiversity  188–89, 198 biofuels  138, 198 biomass  138 Bishopston Clothing  108 Blood, David  33 Blue Sky  83 ‘blue sky’ thinking  BMW  191 Hydrogen series  191 Body Shop  18, 32 bottom of the pyramid  198 brand definition  23 ‘brand gestures’  117 brand owners  26 brands  3, 23, 114, 117, 123 benefits  23 Index  219 corporate  23 Branson, Sir Richard  19, 21, 58, 134, 138 Brazil  77 Bressani, Ricardo  88 Brin, Sergey  26, 27, 98 Buffett, Warren  98, 134 Burt’s Bees  107 Bush, George  61 business as force for good/positive change  18–19, 24, 194–95 enabling people to be good  78–81 making lives better  20–21 rethinking  22 transforming  166–81 Business for Social Responsibility  205 business models  43–45 Amazon  102 sustainable  46 business purpose  22–23 components  24 business strategy  3, 22, 37 components  39 personal values and  35 sustainability and  38, 39, 40 Cafédirect  34 carbon cards  192 carbon credit  198 carbon dioxide  198, 199 carbon emissions  3, 4, 20, 43, 199 measuring  146 carbon footprint  199, 201, 205 carbon neutral  199 carbon offset  199 carbon trading  51 Carbon Trust, the  148, 205 cargo bikes  192  cellulose  18 Centre for Sustainable Design  205 certification  147–53 change agents  168–70 change management  62, 167–81, 172 attitudes  175 behaviour  175 case for change  170–71 implementation  171–74 leadership  168 sustainable  168–70 vision  167  Chappell, Tom  23 China  7, 54, 77 ‘choice editing’  112 ‘choice influencing’  112 Chouinard, Yvon  64 ‘churn’, challenge of  49 Citizenré REnU  192–93 Clarke, Ben  clean-burning  200 climate change  7, 31, 51, 106, 144, 200 Climate Group  205 climate neutral  141, 200 Clinton Foundation  29  Clorox  107 ‘closed loop’ system business  136 Clownfish  179 Coca-Cola Company  26, 37, 53, 85–87, 88, 134 sustainability review  159 Workplace Rights Policy  87 Coca-Cola Recycling LLC (CCR)  87 combined energy  138 communities see consumers, social networks 220  Index competitive advantage  see also differentiation conscience consumers  75–90 see also ‘LOHAS’, markets consumer opinion  76 level of conscience  85 motivations of  78–81, 79 national rankings  77 new consumer agenda  81–82 segmenting  82–84  consumer research  80–91 consumers  110–26 benefits for  111 commercial animals  142 connectors  116 eco-bunnies  142 ‘Evergreens’  122 ‘good experience’  116–18 marketing and  125 mavens  115–16 motivations  78–79 networks  113–16 ‘Nevergreens’  122 types  115 consumerism  53, 76 Coocafe  108 Co-operative Bank, the  25, 42 Co-operative Insurance  42 Eco-Insurance  42–43 corporate reputation  146–47, 158 corporate social responsibility (CSR)  4, 200 CSR Europe  205 da Vinci, Leonardo  57 Danone  87–88, 93 ‘Way Ahead’ programme  88 Daub & Bauble  191 Decaux, Jean-Charles  97 deforestation  5, South America  20 de Preza, Merling  124 di Caprio, Leonardo  160 differentiation  42–43 digital media  125–26 Disneyland  117 Doerr, John  97 Dontang, eco-city  54 Dow Jones Sustainability Index  205 Drucker, Peter  127 early adopters  111 eBay  102, 103–04 e-waste  28 eco-friendly  200 eco-labelling  200 ecological footprint  200 ecological footprint analysis  200 economic blueprint  206 Edison, Thomas  57 Einstein, Albert  189 ‘elaborating’  99 electric cars  138 energizer pyramids  79 energy efficiency  200 energy from waste  201 Energy Star  148 environmental blueprint  208 Environmental Leader  209 Esty, Dan  52–53, 68, 89–90, 106–07, 124–25, 214–15 Ethical Consumer  209 Ethical Corporation  209 Ethical Fashion Corporation  209 ethical sourcing  132 Ethical Trading Initiative  209 European Environmental Agency  209 Evers, Reiner  190–91 Facebook  113 Index  221 Fair Development Fund  34 Fair Labour Association (FLA)  138, 139 fair trade  143, 180–81, 201 Fairtrade (Foundation)  33–34, 90, 107–08, 124, 144, 149, 201, 209, 216 fashion  125 Ferguson, Iain  143–44 First Direct  117 Fisk, Peter  212–13 Fleming, Alexander  58 Fohboh  113 ‘food miles’  42, 201 food security  201 footprint  201 Forest Stewardship Council  149, 209 Forum for the Future  209 fossil fuels  201 Foster, Lord Norman  183 France  77 Freidman, Jeffery  88 Friedman, Thomas  76 Friends of the Earth  121, 209 FTSE Good Index  209 Future Exploration Network  209 future radar  41 gap analysis  204 Gates, Bill  26, 29, 93, 97, 100 GE (General Electric)  37, 58, 62, 98, 169 Earth Rewards credit card  192 ‘Ecomagination’  57, 58 Geldof, Bob  58 Generation Investment Management (IM)  33, 51–52, 68–69, 216 genetically modified (GM) foods  201 genetically modified organism (GMO)  201 Genius Works  8, 24, 40, 79, 96, 213 Ghandi, Mahatma  13 Gillies, Richard  121, 141, 180, 214 Gladwell, Malcolm  115–16 Global Action Plan  209 Global Footprint Network  209 Global Reporting Initiative (GRI)  153, 156, 158, 209 global warming  201–02 Goodall, Chris  137 Ten Technologies to Save the Planet 137–38 Google  26–28, 97, 98 staff welfare  27, 29 sustainability strategy  27–28 Google Earth  27 Gore, Al  33, 58, 68, 194–95 Gossypium  108 Gowland, Santiago  30–31, 49, 51, 70, 179–80, 215 Grameen Bank  43, 44, 93, 130 Grameen Danone Foods  93 green  202 tips  63–64 Green, Stephen  69 Green Sky Thinking  84, 85 Green Tick  151 ‘Green to Gold’ strategy  53, 68 Green & Black’s  43 Greenbiz  209 ‘Greendex,’ The  77 greenhouse effect  202 ‘greenhouse gases’  199, 202 GreenOrder  112 CRED  112 Greenpeace  46–47, 121 ‘Green My Apple’ campaign  46–47 ‘greenwash’  110, 126, 202 222  Index GRI (Global Reporting Initiative)  134 Grove, Andy  168 growth  3, 6, 8, 78, 132, 147, 155, 188 see also profit health epidemics  31 Horrell, Jonathan  52, 164, 215 house prices  32 HSBC  69 hydrogen cars  189–90 IKEA  134, 174–75, 177 ‘Bag the plastic bag’  177 Immelt, Jeff  57, 58, 62 ‘Ecomagination’  57, 58 India  20, 45, 77 innovation  2, 91–108 drivers of  94–87 Intel  168 Interface Carpet  124, 176–77 Mission Zero  176 RAISE  177 reclaim programme  177 Intergovernmental Panel on Climate Change (IPCC)  209 investor confidence  156, 165 IPCC (International Panel on Climate Change)  167 IT obsolescence  30 Japan  77 Jobs, Steve  47 John Lewis  33, 43 Jones, Hannah  54–55, 67, 122, 141, 163–64, 178–79 Kahneman, Daniel  118 Kampar, Ingvar  174 Kellogg’s  135 Khan, Mehmet  26 Kleanthous, Anthony  214 Klein, Naomi  31 No Logo  123 Knight, Phil  67, 140 Kotter, John  171 Kozinets, Robert  115 Kraft  4, 52, 164, 215 Kyoto Protocol  28 Lamb, Harriet  33–34, 124, 144, 180–81, 216 landfill  202 Le Duc, Colin  33, 51–52, 216 leaders  59–61 catalysts of change  61–62 heads-down  61 heads-up  61 personal responsibility  62–64 leadership  3, 8–9, 56–70, 167, 168 Cs  60 inspiration  59–60 management and  58–59 mindset  57 ‘lean thinking’  99 LEED (Leadership in Energy and Environmental Design) standards  132, 150 Lego  37 Liberation nut company  107 life cycle assessment (LCA)  202 Linked In  113 Lipton  106 ‘LOHAS’ (Lifestyles of Health and Sustainability)  82–84 London College of Fashion  34–35, 105, 217 Lovelock, James  187 The Vanishing Face of Gaia  187 Mackey, John  21 Index  223 Madscar (eco) City  183 Makower, Joel  84 malnutrition  31 management  58–59 Marine Stewardship Council  150 market mapping  41 markets, business  39–41, 94 bright greens  83–84 carbon  51 dark greens  83 green  51 light greens  84 mapping  95 new  40–41 pale greens  84 sustainable  41 Marks & Spencer (M&S)  34, 55, 69, 118–20, 121, 143, 181, 215 Eat Well range  142 ‘Look Behind the label’  119, 121 ‘Plan A’  55, 69, 119, 121, 141–42, 180 Supplier Exchange programme  120 Maslow, A  78 hierarchy of needs  78 McCormick, Dave  137 methane  202 Micorcredit Summit Campaign  44 microcredits  93 Microsoft  26, 28–30 energy management  29 sustainability strategy  29 MidAmerican Energy  98 ‘middle management’  59 mission statement  19, 23 mobile phones  48 Morris, Nigel  35, 53–54, 90, 126, 165, 216 motivations, consumer  78–79 enablers  79 energizers  79 essentials  79 Murdoch, James  161 MySpace  113 National Consumer Council  209 National Geographic  209 Natural Capital Institute  209 natural gas  200 Nature Conservancy  209 NESTA  209 Nestlé  13 Net Impact  209 New Economics Foundation  209 News Corporation  161–62 Sky  161–63 Nieto, Verde Diana  213–14 Nike  37, 38, 54–55, 104–05, 122–23, 134, 138, 139, 140–41, 215 leadership  67–68 managing change  178–79 performance targets  163–64 ROI squared  163–64, 179 responsibility report  157 ‘The Power of We’  47 transparency  163 Nissan Pivo  193 Nokia  45–46, 47–49 ‘The Power of We’  47 Noon Solar  191 Novo Nordisk  43 nuclear power  190 Nussbaum, David  32, 69–70, 216 Obama, Barack  61 ocean energy  137 Of The Earth  193 offset  202 224  Index Oil  136 Oldbenburg, Ray  114 Open Architecture Network  210 organic  202–03 organic food  21, 202–03 ‘organizing idea’  25 Oxfam  49, 80 ozone depletion  203 ozone layer  203 Pacific Gas & Electric  189 packaging  38 Page, Larry  26, 98 Parker, Mark  67, 105 partnering  132–33 Patagonia  64–65, 66 environmental values  64 The Cleanest Line  65 The Footprint Chronicles  65 People Planet Profit Manifesto  9–11 People, Planet, Profit Programme  210–12 People Tree  108  performance  145–65 ‘Balanced Scorecard’  153 business results  153–56 certification  147–53 corporate reputation and  158 managing  156 Picasso, Pablo  197 population growth  3, 4, 92, 188 Porritt, Johnathon  106 poverty  5, 20, 31, 144 Prahalad, C K  101, 198 product life cycle  42 profit  2, 3, 20, 38, 51, 155 Rainforest Alliance  151, 210 recycling  203 Reliance Life Sciences  97 reputation  26, 156 reuse  203 Riboud, Franck  93 risk  155 Rocky Mountain Institute  210 Roddick, Anita  18 Rose, Stuart  69, 119 Ryaniar  44 Sainsbury  34 Sapphire Energy  97 Scott, Lee  53, 55 Shell  134 GameChanger team  137 Singapore Airlines  116 Singleton, David  32, 33–34, 54, 68, 107, 123–24, 143, 164–65, 181, 216–17 Sky see News Corporation  162 Skype  44 Social Accountability International  210 social blueprint  207 social entrepreneurs  99–101 social entrepreneurship  92–93, 101 Social Entreprise Coalition  210 social networks  111, 113–16, 189 shared consciousness  115 ‘third place’  114 solar energy  137, 189, 192–93, 194 Solar Sailor  193 Solstice on the Park  194 Starbucks  25, 111, 114, 134 stewardship  203 strategy see business strategy ‘streamlining’  99 suppliers  24 supply chain  38, 120, 134, 135, 136, 143 Index  225 SustainAbility  210 sustainability  4, 203 business purpose and  23–24 business results and  153–56 life style choice  18 sustainable advantage  42–43, 44 sustainable development  203 Sustainable Development Commission  210 sustainable innovation  91–108 levels of  98–99 lifestyles and  187–94 phases  95–97 process  96 trends in  190–94 visions of  188–90 sustainable markets  37 adaptive  37 emergent  37 sustainable operations  131–44, 133 Swartz, Jeffrey  66 UN Environmental Programme  210 Unilever  30–31, 49–51, 70, 105–06, 123, 124, 215 Brand Imprint process  49, 106, 179–80 brands  31 sustainability programme  50 United States of America  77 waste  28 Tate & Lyle  108, 143 technological innovation  102, 188–90 Tesco  113–14, 135, 181 Tesla Motors  98, 192 Tichy, Professor Noel  169 Timberland  66–67, 135 environmental programme  67 Time Warner  160–61, 162 Tom’s of Maine  23 Tomorrow’s Company  210 toxic chemicals  47 Toyota  99, 106–07 Prius hybrid car  43 Transparency International  210 Treehugger  210 Trendwatching  191, 210 ‘triple bottom line’  156, 203, 204 Wal-Mart  53, 55, 105, 118, 120–22, 135 waste stream  204 waste-treatment plant  204 water  7, 8, 31, 34, 53, 190 WhatOnEarthsGoingOn.com  29 Whole Foods Markets  21 Williams, Dilys  34–35, 105, 125, 217 wind energy  137 World Business Council for Sustainable Development  210 World Changing  210 World Economic Forum  210 Worldwide Fund for Nature (WWF)  32, 34, 69–70, 86, 210, 216 value, measuring  154–55 value chain  133 value creation  37–38 value drivers  155–56 value propositions  40 Velib cycling scheme  97 venture capitalism  97 video-conferencing  94 Virgin Galactic  18 Virgin Group  199 virtuous cycle  51 226  Index Xing  113 Yunus, Muhammad  7, 44–45, 93 zero emissions  204 Zipcars  45, 110 Zoom Ventures  100, 101 Zurcher, John  175 227 228 With over 42 years of publishing, more than 80 million people have succeeded in business with thanks to Kogan Page www.koganpage.com You are reading one of the thousands of books published by Kogan Page As Europe’s leading independent business book publishers Kogan Page has always sought to provide up-to-the-minute books that offer practical guidance at affordable prices 229 230 ...i People, Planet, Profit ii iii People, Planet, Profit How to embrace sustainability for innovation and business growth Peter Fisk iv Publisher’s note Every possible effort has been made to. .. force for positive change 182 184 187 194 Part4: Resources 197 The People, Planet, Profit A to Z The People, Planet, Profit blueprint The People, Planet, Profit directory The People, Planet, Profit. .. It goes to the heart of business To why you exist Where you focus, how you succeed To connect business and the world in new ways People and planet and profit Together, achieving more Business