As 2014 gets underway, I have been privileged to participate in a wide range of forward-looking discussions taking place within the global Sustainable Brands community, and especially within our membership group. My takeaway going into the year is that there is a good deal of reimagining and redesign for a regenerative future going on in the world today, much of which may yet be unseen by those not fully focused on keeping a whole systems’ eye on things as we are at SB, and we are quite excited to be sharing with you what we’re seeing as the year unfolds.
Earlier this month, for example, I had the chance to share perspectives with Rainforest Alliance president Tensie Whelan and Patagonia’s VP of Environmental Initiatives, Rick Ridgeway, on the front end of sustainable business leadership and its corresponding benefits with the top 250 global leaders at Avery Dennison, a global leader in labeling and packaging materials. Thanks to CEO Dean Scarborough's strong commitment, their strategic operating theme, Sustainable Momentum, has taken on a new and deeper meaning for the company as of late. Dean and others at Avery have realized this past year that they have the power to use their scale and buying power to move the paper market to more sustainable sources that are cost-neutral, offering Dean the path he needed to connect purpose-driven value creation with his goal to continue to deliver exemplary business performance.
Dean Scarborough, CEO of Avery Dennison, keynote speaker at SB '14 San Diego
Avery Dennison is not alone in finding new intersections between smart sustainability strategy and smart business strategy. New SB corporate member Novelis, led by Chief Sustainability Officer John Gardner, has embarked on a journey toward sourcing 80 percent (from 20 percent just a few short years ago) of the resource material for its aluminum manufacturing operations from recaptured stock, significantly reducing both carbon emissions and costs, and creating a huge disruption in the dynamics of turning waste aluminum into a valuable resource. We look forward to watching, and helping our community leverage this commitment and others like it to help further our collective efforts to move closer to closing the loop on aluminum and many other ‘technical nutrients.’
In the food sector, Chipotle and Panera Bread continue to lead disruptive supply chain innovation and drive shift in consumer expectations surrounding the food they eat. Both companies continue to experience strong growth and market performance, while companies such as Carlson Restaurants and others struggle under the burden of operating from old market paradigms and models which they either refuse to or are unable to innovate around. We see big moves in the tech sector supply too, with Intel taking a leadership position around "conflict-free" minerals and Apple sharply ramping up its efforts toward the same end.
Eileen Howard Boone, SVP of CSR & Philanthropy at CVS Caremark, keynote speaker at SB '14 San Diego
Apple CEO Tim Cook also just took a surprising stand alongside Unilever’s Paul Polman, and a small but growing group of other courageous leaders, to suggest that investors who do not support their companies’ goals beyond traditional single-bottom-line profit should move their money elsewhere. This comes just a couple of weeks after CVS announced it is ending the sale of tobacco products in all 7,600 CVS/pharmacy locations across the US (it’s not every day that a company willingly “calls it quits” on $2 billion in annual revenue). Both of these moves are evidence of a growing commitment to leadership in the shift to a healthier future.
Our continued growth is just another signpost indicating where the world is headed. Market signals across many sectors — signals that seem like outliers until looked at in aggregate — continue to indicate the future will be led by those businesses and brands that base their strategies and operations on what Dean Scarborough rightly calls "value creation" as opposed to value extraction. We at Sustainable Brands see this trend as inevitable and remain grateful to be able to support those companies making the shift toward healthy, intentional business practices. These are just a few of the many examples of leadership and innovation taking place within our global network. We look forward to sharing more on market-leading activities of the highest caliber in the coming months. Do continue to send us pointers to the signposts you see so we can help craft a bigger picture for you of the real shift that is happening in the fabric of society, economy and business in the 21st century.