The 2013 Sustainability Leaders A GlobeScan/SustainAbility Survey Contents About the Globescan / SustainAbility Surveys Introduction 4 Survey Methodology Key Findings 3 5 6 Institutional Leaders on Sustainability Corporate Leaders on Sustainability 7 12 Spotlight on Corporate Leaders in Emerging Markets Spotlight on Rising Corporate Leaders -- -- The 2013 Sustainability Leaders 2 A GlobeScan/SustainAbility Survey About the GlobeScan / SustainAbility Surveys The GlobeScan / SustainAbility Surveys offer a unique, collaborative platform that uses research-driven insights, including targeted surveys of the most influential thought leaders in the sustainability arena from over sixty countries, to explore the biggest sustainability challenges. The thousands of stakeholders surveyed include leading sustainable development experts and practitioners from five sectors: • • • • • Corporate Government (including multi-lateral institutions) NGOs Institutional (e.g., academics) Service (e.g., consultants, media) The GlobeScan / SustainAbility Surveys are in field around six times each year, and provide a regularly updated expert perspective on a range of timely topics. You can download all the latest surveys from the GlobeScan or SustainAbility websites. The 2013 Sustainability Leaders 3 A GlobeScan/SustainAbility Survey Introduction “If we achieve our sustainability targets and no one else follows, we will have failed.” Paul Polman - CEO, Unilever Another year has passed and the results of the latest GlobeScan/SustainAbility opinion survey on leadership look startlingly similar: Unilever on top. That’s not the whole story of course - Patagonia continues its impressive rise in the eyes of our sustainability experts, Puma has entered the “top ten” for the first time ever, and our global expert pool proves that leadership is often best recognized when it’s familiar, with respondents most likely to cite leaders headquartered in the regions they are based in. Even Unilever as #1 rises above the status quo, bucking the trend of leadership companies “coming back to Earth” as time passes between the launch of ambitious commitments or initiatives. In fact, Unilever has only continued to rocket past its peers since it first launched the Sustainable Living Plan in 2010. And therein lies the rub of “leadership as usual,” broadly exemplified in “The 2013 Sustainability Leaders” survey: it’s not nearly enough. Only national governments - whose paltry leadership on sustainability was recognized by all stakeholder respondents, including experts in government - rank lower than corporate leaders in advancing the sustainability agenda. This is an all too familiar theme in the global workshops and research GlobeScan and SustainAbility have conducted for The Regeneration Roadmap. So in celebrating Unilever and other business leaders’ ambition, achievement and engagement (alongside its fellow changemakers in social enterprise, science and the NGO space), let’s remember the quote (above) from Unilever CEO Paul Polman: leaders are only as successful as those who are inspired to follow in their path. The 2013 Sustainability Leaders 4 A GlobeScan/SustainAbility Survey Survey methodology Demographics Government Academic / Research NGO Corporate Service / Media Other Total Asia 8 9 26 36 21 2 102 Africa / Middle East 3 8 12 17 11 3 56 Europe 10 31 64 99 84 21 310 North America 29 61 115 217 110 39 571 Oceania 2 4 13 12 12 4 47 Latin America / Caribbean 5 8 16 19 19 5 73 DK/NA 2 0 4 2 3 0 9 Total 59 123 250 402 260 74 • 1,170 qualified sustainability experts completed the online questionnaire from February 20 to March 14, 2013. • Respondents were drawn from: corporate, government, non-governmental, academic/research, service/media, and other organizations. • Experts surveyed span 73 countries in Asia, Africa / Middle East, Europe, North America, Latin America / Caribbean, Australia / New Zealand, and comprise a highly-experienced respondent pool: • • • • 5 53 percent have more than ten years of experience working on sustainability issues. 30 percent have five to ten years of experience. 16 percent have three to four years of experience. Respondents with less than three years of sustainability experience have been excluded from the results. Note to Readers All figures in the charts and tables in this report are expressed in percentages, unless otherwise noted. Total percentages may not add to 100 because of rounding. The 2013 Sustainability Leaders A GlobeScan/SustainAbility Survey Key findings • National governments are seen as demonstrating the poorest leadership on sustainability over the last year. • While social entrepreneurs have rebounded in 2013 and are now perceived as the sector advancing the sustainability agenda most, opinion of NGOs remains low compared to where it ranked two years ago. • Experts find only national governments’ performance in advancing sustainability poorer than corporate leaders. • There is broad consistency in leadership opinions across the world; Social entrepreneurs are perceived as the leading actors advancing sustainability in all regions but Africa / Middle East. • Unilever captures the top spot for third year in a row, while Patagonia catapults to #2 position on back of strong gains in last year; Puma has entered the top ten after not appearing on the list in 2011. • Unilever has not only been able to sustain its leadership position since the launch of the Sustainable Living Plan in 2010, but increase it considerably. This is even more impressive when compared to other leadership companies who have “come down to Earth” after an initial bump from the launch of ambitious commitments or initiatives. • Experts in developing countries are most likely to cite leadership companies from the regions in which they are based (for example, Natura in the Latin American/Caribbean region). This largely holds for experts in Europe and North America as well. In fact, when asked to name leadership companies headquartered in developing countries, Natura and Tata are the only companies that garner more than 1% of mentions in Europe and North America. • A commitment to sustainable values remains the primary reason a company is cited as a sustainability leader, while transparency and communication, integration into core business model and environmental, waste, and water management have risen in importance in 2013. The 2013 Sustainability Leaders 6 A GlobeScan/SustainAbility Survey Institutional Leaders on Sustainability The 2013 Sustainability Leaders A GlobeScan/SustainAbility Survey National governments are seen as demonstrating the poorest leadership on sustainability over the last year. Social Entrepreneurs 13 Leaders in the Scientific Community 44 8 28 36 10 37 15 1 3 2 2 NGO Leaders 6 Leaders of Multilateral Organisations 36 42 12 2 2 Question 2 20 42 2 20 40 23 5 9 Corporate Leaders Nationally Elected Government Leaders 5 (Excellent) 3 16 4 30 42 3 7 38 2 1 (Poor) 1 Please rate the overall performance of each of the following types of leaders in advancing the sustainability agenda over the past year? 1 DK / NA The 2013 Sustainability Leaders 8 A GlobeScan/SustainAbility Survey While social entrepreneurs’ leadership has rebounded in 2013, opinions of NGO leadership remain lower than in years past; Government leadership has declined every year since 2010. “Excellent” (4+5) 60 Social Entrepreneurs 50 Leaders in the Scientific Community 40 NGO Leaders 30 Leaders of Multilateral Organisations 20 Question Please rate the overall performance of each of the following types of leaders in advancing the sustainability agenda over the past year? Corporate Leaders 10 Nationally Elected Government Leaders 0 2010 2011 2012 2013 The 2013 Sustainability Leaders 9 A GlobeScan/SustainAbility Survey There is broad consistency in leadership opinions across the world; Social entrepreneurs are perceived as the leading actors advancing sustainability in all regions but Africa / Middle East. Performance on Sustainability Leadership by Different Types of Leaders Total “Excellent” by Region, 2013 Africa / Middle East Asia Leaders in Scientific Community 35 Social Entrepreneurs 59 Leaders of Multilateral Organisations 29 NGO Leaders 33 Corporate Leaders 32 Government Leaders 10 55 3 Europe 40 45 23 32 13 47 54 20 52 North America 62 Oceania 47 47 47 51 9 20 35 20 46 9 3 4 Question Please rate the overall performance of each of the following types of leaders in advancing the sustainability agenda over the past year? 30 43 20 3 Latin America / Caribbean 49 22 3 The 2013 Sustainability Leaders A GlobeScan/SustainAbility Survey Government leadership is consistently rated lowest across all stakeholder audiences, including by experts in government. Performance on Sustainability Leadership by Different Types of Leaders Total “Excellent” by Stakeholder, 2013 Government Leaders in Scientific Community Social Entrepreneurs Leaders of Multilateral Organisations NGO Leaders Corporate Leaders Government Leaders NGO 41 32 40 57 26 50 20 5 48 57 22 19 Corporate 46 31 20 Academic / Research 17 2 64 61 46 38 21 37 24 3 Other 47 58 19 47 Media / Service 43 23 3 20 Question Please rate the overall performance of each of the following types of leaders in advancing the sustainability agenda over the past year? 16 5 7 The 2013 Sustainability Leaders 11 A GlobeScan/SustainAbility Survey Corporate Leaders on Sustainability The 2013 Sustainability Leaders A GlobeScan/SustainAbility Survey Unilever captures the top spot for third year in a row; Patagonia catapults to the #2 position on the back of strong gains in the last year. % of Total Mentions, All Respondents, 2013 25 Unilever 14 Patagonia +7 11 Interface 8 Walmart GE 5 Marks & Spencer 5 Puma 4 Nike 4 Coca Cola 4 Natura 3 IBM 3 Google 3 Nestlé 3 Novo Nordisk 3 13 +8 Question +3 What specific companies do you think are leaders in integrating sustainability into their business strategy? +3 Arrows denote movement since 2012 (+/- 3% is threshold) The 2013 Sustainability Leaders A GlobeScan/SustainAbility Survey Unilever and Patagonia show significant gains in 2013; Puma has entered the top ten after not appearing on the list in 2011. % of Total Mentions, All Respondents, 2013 2013 Unilever 15 Patagonia 5 7 5 GE Coca Cola Puma 14 1 1 7 25 Question 11 10 Walmart 2011 14 7 Interface 17 2012 12 What specific companies do you think are leaders in integrating sustainability into their business strategy? 8 11 12 4 2 4 The 2013 Sustainability Leaders A GlobeScan/SustainAbility Survey Unilever is rated strongest by corporate peers, NGOs and service/media; Patagonia is the highest-rated company among academics/researchers and tied with Walmart among government experts. Leaders by Stakeholder Type % Total Mentions, Unprompted, 2013 Government Academic / Research NGO Corporate Service / Media Unilever 8 26 16 29 30 Patagonia 12 10 20 12 14 Interface 7 11 12 11 10 Walmart 12 6 6 10 7 GE 2 3 6 5 6 Marks & Spencer 7 8 2 5 6 Question What specific companies do you think are leaders in integrating sustainability into their business strategy? The 2013 Sustainability Leaders 15 A GlobeScan/SustainAbility Survey Unilever’s leadership status is consistent across geographies, with particular resonance in Europe and Asia. Interface also enjoys great geographical breadth and is cited as a leader in every geography except Africa/Middle East. Interestingly, GE is mentioned as “top 3” leader in Asia and Oceania, but is not regarded among top leaders in North America. Sustainability Leaders by Region % Total Mentions, Unprompted, 2013 Asia Europe Africa / Middle East 26 Unilever Woolworths 20 Unilever 18 Marks & Spencer ITC 8 Unilever GE 7 Nedbank Novo Nordisk 6 Salsol Nestlé 6 Anglo American North America 13 9 7 Patagonia 32 6 Novo Nordisk 5 Latin America / Caribbean 42 Patagonia 23 Unilever Unilever 22 Westpac 13 Unilever GE 9 Nestlé 10 7 17 Interface 12 Walmart Nike 16 6 What specific companies do you think are leaders in integrating sustainability into their business strategy? 10 Interface Oceania 15 Question 12 Natura Siemens 6 Walmart Interface 6 Interface 29 5 The 2013 Sustainability Leaders A GlobeScan/SustainAbility Survey Spotlight on Corporate Leaders in Emerging Markets The 2013 Sustainability Leaders A GlobeScan/SustainAbility Survey Experts in developing countries are most likely to cite leadership companies from the regions in which they are based (for example, Natura in the Latin American/ Caribbean region); Natura and Tata are the only companies that garner more than 1% of mentions from experts in Europe and North America. Companies in the Developing World who are Leaders at Integrating Sustainability into Strategy Unprompted, by Region, 2013 Asia Africa / Europe Middle East Anglo-American North America 5 1 Cemex ITC 1 2 4 Nedbank 1 1 1 4 12 2 Vale 1 5 1 9 Unilever 5 2 What specific companies that are headquartered in emerging economies (e.g., in Africa, Asia, and Latin America) do you think are leaders in integrating sustainability into their business strategy? 1 1 1 5 Woolworths DK /NA 1 5 Sasol 53 1 2 SAB Miller 8 11 9 Petrobras Other Question 2 11 Natura Tata Latin America / Carribean Oceania 1 21 28 41 14 22 12 12 66 17 70 80 18 The 2013 Sustainability Leaders 18 A GlobeScan/SustainAbility Survey Spotlight on Rising Corporate Leaders The 2013 Sustainability Leaders A GlobeScan/SustainAbility Survey The combination of relative ambition, effective communications and follow-through is vital to capturing and holding the imagination of sustainability experts, as Unilever proves; even where follow-through is robust, experts still exhibit “what have you done for me lately?” thinking. Companies with the Greatest Commitment to Sustainability Unprompted, Combined Mentions, Trends 2007 - 2013 30 30 Unilever Patagonia 25 20 20 November 2010 Unilever Launches “Sustainable Living Plan” 10 0 14 10 November 2011 Patagonia Launches “Don’t Buy This Jacket” Campaign Question What specific companies do you think are leaders in integrating sustainability into their business strategy? 0 20 20 20 20 13 12 11 10 09 20 08 30 GE 20 20 07 13 12 11 10 09 08 07 20 20 20 20 20 20 20 20 30 Walmart 20 May 2009 GE Launches “Healthy Imagination” 10 10 8 5 0 0 20 20 20 20 20 20 20 20 20 20 20 20 20 20 13 12 11 10 09 08 07 13 12 11 10 09 08 07 20 July 2009 Walmart announces its sustainable product index The 2013 Sustainability Leaders A GlobeScan/SustainAbility Survey Unilever has evolved from targeted, issue-based efforts to broad-based ambition and rhetorical leadership that confronts systemic challenges. Reason a Company Is Considered a Sustainability Leader Respondent Feedback, Unilever, 2010 - 2013 30 Developing more sustainable food 25 20 CEO leadership on confronting shareholder short-termism Setting ambitious goals through the Sustainable Living Plan Ambitious plans and goals that will force the company to stretch Focus on evidence-based metrics for impact 15 10 Paul Polman their CEO Launches Sustainable Living Plan CEO Paul Polman is a visionary 25 Question What specific companies do you think are leaders in integrating sustainability into their business strategy? They totally understand sustainable business 5 0 2007 21 2008 2010 2009 2011 2010 2011 2012 2012 2013 2013 The 2013 Sustainability Leaders A GlobeScan/SustainAbility Survey Commitment and transparency are consistent hallmarks of Patagonia’s leadership, but a significant rise occurred after “Don’t Buy This Jacket” provocation and campaign. Reason a Company Is Considered a Sustainability Leader Respondent Feedback, Patagonia, 2010 - 2013 30 They drill down further and communicate in a highly creative & professional manner 25 Openly discuss success and challenges 20 15 It is a cause-driven business model: first planet & people, then profit The company has been leading sustainability & CSR initiatives for many years, before sustainability become “trendy”. Honest and transparent about their footprint to all stakeholders Honest and transparent about their footprint to all stakeholders. Highly open, been walking the walk for a long time Transparency on initiatives and challenges 10 Launches Footprint Chronicles 5 Re-launches Footprint Chronicles Website Launches “Don’t Buy This Jacket” Campaign Question 14 “Don’t Buy This Jacket” campaign 0 2007 22 2008 2010 2009 2011 2010 2011 2012 2012 2013 What specific companies do you think are leaders in integrating sustainability into their business strategy? 2013 The 2013 Sustainability Leaders A GlobeScan/SustainAbility Survey Puma’s rise in the eyes of experts can solely be attributed to releasing its Environmental Profit & Loss (E P&L) statement. Reason a Company Is Considered a Sustainability Leader Respondent Feedback, Puma, 2010 - 2013 15 Externalities in P&L accounts Footprint measurement to include ecosystem services 10 Lifecycle analysis Question What specific companies do you think are leaders in integrating sustainability into their business strategy? Environmental Profit and Loss Recent release of Environmental P&L 5 4 Releases Environmental Profit & Loss (E P&L) Statement 0 2011 2010 23 2010 2011 2012 2012 2013 2013 The 2013 Sustainability Leaders A GlobeScan/SustainAbility Survey A commitment to sustainable values remains the primary reason a company is cited as a sustainability leader. Reason a Company Is Considered a Sustainability Leader % of Total Mentions, All Respondents, 2013 26 Commitment to Sustainability Values 14 Transparency / Communication 13 Part of Core Business Model 11 Environment / Waste / Water Executive Leadership has Strong SD Values 9 Supply Chain 9 Sustainable Products / Services 9 Question Why do you think [INSERT COMPANY #1 FROM ABOVE] is a leader in integrating sustainability into their business strategy? 6 Renewable Energy / Lowering Emissions Industry Leader 5 Innovation / Research & Development 5 The 2013 Sustainability Leaders 24 A GlobeScan/SustainAbility Survey Transparency/communication, integration into core business model and environmental/waste/water management are more important factors in 2013 for determining corporate sustainability leadership. Reason a Company Is Considered a Sustainability Leader % of Total Mentions, All Respondents, 2012 - 2013 26 Commitment to Sustainability Values Transparency / Communication 6 9 Supply Chain 6 5 11 2013 2012 9 6 Renewable Energy / Lowering Emissions Why do you think [INSERT COMPANY #1 FROM ABOVE] is a leader in integrating sustainability into their business strategy? 9 7 Sustainable Products / Services Question 11 Executive Leadership has Strong SD Values 25 13 10 Environment / Waste / Water Innovation / Research & Development 14 12 Part of Core Business Model 31 8 8 The 2013 Sustainability Leaders A GlobeScan/SustainAbility Survey Experts identified a number of reasons why they consider other top companies sustainability leaders, reflecting the three points of the “leadership triangle”. Goals consistent with business opportunities and consumer base Nike Vision / Strategy Question One of the few companies to identify closed loop systems as appropriate GlaxoSmithKline Integration / Performance Responsible food supply chain work and use of science Marks & Spencer 26 They put their money where their mouth is & invest in big projects instead of just making incremental improvements to be “less bad“ Google Stopped being [so] secretive Coca Cola Aligning compensation with meeting sustainability goals Novo Nordisk Engagement / Communication Their own staff helps spread the word - not just corporate PR Interface Why do you think [INSERT COMPANY #1 FROM ABOVE] is a leader in integrating sustainability into their business strategy? Please enter up to two responses in the spaces provided. The 2013 Sustainability Leaders A GlobeScan/SustainAbility Survey For more information, contact: Chris Coulter President, GlobeScan chris.coulter@globescan.com Chris Guenther Research Director, SustainAbility guenther@sustainability.com Mohammed Al-Shawaf Manager, SustainAbility al-shawaf@sustainability.com GlobeScan Incorporated Toronto: +1 416 962 0707 London: +44 20 7253 1450 San Francisco: +1 415 874 3154 SustainAbility, Ltd. Washington: +1 202 315 4150 New York: +1 718 210 3630 London: +44 20 7269 6900 www.globescan.com www.sustainability.com 27 The 2013 Sustainability Leaders A GlobeScan/SustainAbility Survey