THE ONE PLANET

SUSTAINABILITY

CHALLENGE

University of Exeter

Business School

June 11th – 12th 2013

EXECUTIVE

SUMMARY

Background

The first One Planet Sustainability

Challenge (Challenge) was held at

the University of Exeter Business

School in Devon, England, over

June 11 and 12, 2013.

The Challenge was initiated and

organised by current students from

the One Planet MBA Programme

(OPMBA) at the University of Exeter

Business School, developed in

partnership with WWF-International

(WWF).

The theme of the first Challenge

was the role of water and business -

inspired by 2013 being the UN

International Year of Water

Cooperation.

The Challenge aimed to draw attention

to water stewardship and to encourage

Master's and MBA students to

consider the implications for business,

now and in the future.

It was also designed to be an

opportunity for international students

to connect with each other and with

inspirational leaders working to create

a more sustainable and socially

responsible world.

It is hoped that the Challenge will

continue to be a student-run initiative

in future years, highlighting different

business and sustainability issues

each year.

The Challenge gave participating

teams an opportunity to explore water

issues for business in both developing

and developed countries. During the

second day, fifteen teams comprised of

three Master's students per team from

the UK and abroad pitched their

proposed solutions related to water

stewardship to CCE and SABMiller).

Winning teams were from Oxford

Brookes (CCE) and the University of

Exeter (SABMiller).

Overview of

the event

The first day included six speakers

from Coca-Cola Enterprises (CCE),

SABMiller, Water Aid, WWF-UK,

South West Water and Professor

David Grey, an experienced water

specialist. Speakers presented the

risks and opportunities around water

as a key factor for environmental,

economic and social balance, from

different perspectives.

In the evening, participants were

treated to a networking dinner

sponsored by South West Water with

fundraising to help WaterAid.

Outcomes

Securing generous support from three sponsors:

• CCE undertook to take the winning team to visit their operations in

Belgium – the visit would include a tour of their Chaudfontaine

factory and their R&D Lab in Brussels. In addition to that, they

would invite the winners to attend their Sustainability Innovation

Summit, taking place in London on 1st October with 150

stakeholders.

• SABMiller offered to take the winning team to see an active water

program at one of their operations in India. This would include a

three day visit to see one of their watershed projects, covering

airfares and ground expenses. There were also opportunities to

present the results at the World Economic Forum.

• South West Water sponsored the Networking Dinner and raised

money for WaterAid.

The event was a resounding success in achieving the

following outcomes:

Proactively engaging with two of the world’s largest multinational drinks

businesses to source innovative solutions on water stewardship from

Master's students with an interdisciplinary background.

A strong range of speakers offering a variety of perspectives,

including:

David Grey. Former Senior Water Advisor, World Bank

and Visiting Professor, Universities of Exeter and

Oxford

Jonathan Gosling. Professor of Leadership at the

Centre for Leadership Studies, University of Exeter

and co-founder of the One Planet MBA.

Dave Tickner. Chief Adviser, Freshwater WWF-UK and

Visiting Research Fellow, University of East Anglia

Jean-Paul Jeanrenaud. Director Corporate Relations,

WWF International and co-founder of the One Planet

MBA.

Joe Franses. Director Corporate Responsibility &

Sustainability, Coca-Cola Enterprises

Chris Loughlin. Chief Executive, South West Water Limited

David Grant. Senior Manager Water Risk &

Partnerships, SAB Miller

Malcolm Kirkup, Director of the One Planet MBA

programme and co-founder of the One Planet MBA.

Daniel Yeo. Water Security and Climate Change Senior

Policy Analyst at WaterAid.

Participation from 13 universities from across the England, Ireland, France,

the Netherlands, Australia and Mexico with 15 nationalities including India,

Argentina, Pakistan, Colombia, Chile, Nigeria, Honduras, Turkey, Portugal

and the US. Participants were engaged in MBAs and Master's programs

including Environmental Technology, Supply Chain Management and

International Management.

Winning teams for 2013 were from the University of Exeter

(SABMiller) and Oxford Brookes (CCE)

Participation from 13 universities from across the England,

Ireland, France, the Netherlands, Australia and Mexico

with 15 nationalities including India, Argentina, Pakistan,

Colombia, Chile, Nigeria, Honduras, Turkey, Portugal and

the US. Participants were engaged in MBAs and Master's

programs including Environmental Technology, Supply

Chain Management and International Management.

A survey of participants showed that 97% agreed or strongly agreed that

the event was well organised, and 100% would recommend other students

to participate next year. Respondents all agreed or strongly agreed that

the Challenge met their expectations, and 85% agreed that it was

worthwhile in terms of their career objectives.

Specific feedback included: “Excellent quality and range of speakers”, “an

absolutely brilliant event”, “the participation of executives of different

organisations really enlightened the activity”. “ I was deeply impressed by

the calibre of student experience, strength of ideas and creative thinking

on display...I will certainly feedback many of the challenges and comments

into our own business”, “The event was tremendously well organised”, and

“This is the best event that I have seen MBA students organize – well

done!”. Although organization of the event was strong, there were a

number of suggestions for improvement which can be taken on board for

future events.

Topics suggested for future Challenges included the food-energy-water

nexus; sustainable farming; ethical choice of development and poverty

eradication through investment vs sustainability; renewable energy,

innovative business models for sustainability; land-use, promotion of

consumption by multi-nationals, ethical finance, human rights, big data and

analytics, sustainable construction.

The strong range of speakers was the most interesting and useful aspect

of the Challenge for most participants. Particular speakers singled out for

praise included David Grey, Chris Loughlin and Daniel Yeo.

Themes arising from the event

A number of over-arching themes emerged from the

discussions during the Challenge:

Water is a current big

global ‘mega-challenge’

for society. Water risks are

real here and now.

We are rapidly approaching

a systemic and global

water crisis if we do not act

to reduce institutional

failure at a global level. Global water stewardship is

a complex, wicked problem,

but water stewardship

actions are local.

Effective solutions will

require boundary-spanning

collaboration; crossing

geographical and sector

boundaries.

Detailed notes

of proceedings

Day One – June 11th 2013 – Innovation

Centre, University of Exeter

Speaker notes

Malcolm Kirkup - Director of the One

Planet MBA programme, officially

opened the Challenge, highlighting

the Business School's objective to

challenge traditional management

education and develop a new

generation of ‘planet minded’

business leaders.

Jean-Paul Jeanrenaud - Director of

Corporate Relations at WWF

International, remarked on the critical

role of water at a global level. Jean-

Paul focused on the need for

business, government and society to

work together- co-creating solutions

that generate intergenerational

systemic change.

Joe Franses – Director of Corporate

Responsibility & Sustainability at

Coca-Cola Enterprises (CCE), talked

about water stewardship as an

strategic issue for CCE – given that

the company takes 8.8bn litres of

water per year to produce 12bn

bottles and cans demanded by

consumers in North-Western Europe.

The CCE Sustainability Plan developed in 2011 is focused on reducing,

recycling and replenishing water systems throughout the organisation's entire

value chain. To this end, CCE has set some ambitious targets; such as the aim

to reduce the water ratio required for end-to-end production of CCE products to

1.2 by 2020. Achieving this goal will require CCE to move beyond the 'boundary

of control' and build effective collaborative relationships. In particular, CCE is

working with sugar beet producers and accounting for 99% of the product's

existing water footprint. Community based partnerships in the River Cray and

River Nar are just two examples of this work.

During the last years CCE has

become an industry leader in water

stewardship. Joe talked participants

through CCE's sustainability journey

during this period, highlighting the

critical role both technological and

process innovation has played in

enabling CCE to substantially improve

water efficiency.

However, Joe also highlighted the

increasing need for CCE to look

beyond the organisation’s ‘four walls';

focusing on the risk, impact and

challenge of improving water

stewardship throughout the

organisation's value chain.

David Grant, Senior Manager of

Water Risk & Partnerships at

SABMiller also highlighted the critical

issue of control in tackling business

risks associated with the stewardship

of water.

Like CCE, over 90% of the water used in the production of SAB products is

located in a part of the value chain where SAB has least control- the

agricultural supply chain.

Managing the economic and regulatory risks associated with the quantity and

quality of water therefore requires new models of supply chain collaboration;

building resilience throughout the value chain and the community in which

production resides. David remarked that companies should recognise the

collective risks associated with ineffective water stewardship and the

importance of building collaborative responses focused on protecting water

sheds, reducing water use, recycling/ reusing water throughout the value chain

and redistributing benefits throughout the community.

Using examples from SAB's work in Tanzania and Rajasthan, David presented

the organisation's approach to effective water stewardship, using a

comprehensive risk assessment process, stakeholder engagement, risk

prioritisation and the development of collaborative risk mitigation plans. Finally,

David highlighted the critical role of pricing as a lever to improve water shed

management- challenging the current disconnect between water price and

water scarcity by recognising the true value of water to society.

David Tickner (Chief Adviser- Freshwater at

WWF-UK) focused on the

complexity and critical importance

of water to all of society stepping

up to a global level.

He suggested that no business is

an island- we're all in this together

and that risks associated with

water stewardship transcend

traditional geographical and

sectoral divisions.

David proposed that effective solutions will therefore require us to embrace

the wicked, complex nature of the problem; recognising that there are no

silver bullets, no universal rules and no universal solutions. As Joe and David

Grant also emphasised in their earlier presentations, David argued the issue

of water stewardship is too complex and too systemic for business to solve on

its own.

David Grey, Former Senior Water Advisor at the World Bank and Visiting

Professor at the University of Exeter and University of Oxford, argued that we

live in a time of extraordinary opportunity and extraordinary risk from the

perspective of water security. Building on the global challenges and

highlighting the correlation between the distribution of rainfall variability and

variations in GDP, David proposed that access to water is an enduring human

goal-brought about through hydro-climatic variability.

David argues institutional failure at a global level is currently resulting in

intolerable levels of water risk-with huge consequential human, geopolitical

and economic impacts. As a society, we need to move beyond the local

management discussions, beyond questions of water sovereignty and

develop global, system-level solutions to global water variability.

Daniel Yeo, Water Security and Climate

Change Senior Policy Analyst at

WaterAid, provided participants with a

global view of water stewardship,

focusing on the impact of ineffective

water stewardship on the poorest

countries in the world.

Daniel highlighted the impact of water

access on productivity capability in

developing economies; where access to

water directly limits the productive

capability and education opportunities.

Daniel also presented the rationale for business to engage in effective water

stewardship in developing economies- highlighting the potential opportunity to

improve the health of the local workforce, build trust between multi-national

corporations and communities, and leverage the role of water access as a

critical pillar of economic development and therefore the local customer base.

Chris Loughlin, Chief Executive Officer

at South West Water, brought a local

perspective -focusing on the challenge

of water stewardship in the south west

of the UK.

Setting out his perception of the

“perfect storm” in relation to water,

food and energy consumption, Chris

argued we face unprecedented

societal challenges.

Alongside increasing demand, Chris cited the increasing volatile rainfall in the

UK and decreasing customer willingness and capability to pay as critical

challenges for the water industry.

Furthermore, Chris argued business is facing a crisis of legitimacy; proposing

that success in the new business environment is dependent on effective

corporate engagement in the development of systemic solutions to critical

societal issues.

Chris also highlighted the critical role of community focused, small scale

solutions as a tool for tackling the global issue of water stewardships. Drawing

on South West Water’s regional work in this area, Chris described the

organisation’s commitment to supporting local communities, exemplified

through their work to reinstate water storage capacity in moorland areas and

through the direct provision of small-scale grants to local farmers to reduce river

water contamination.

Jonathan Gosling, Professor of the University Business School and Director

of the Leadership Programme, encouraged open participation and questions,

to explore different perspectives to build water stewardship. Building on this,

the panelists shared insights regarding these challenging topics. For

example, the most impacting forthcoming technologies that could improve

water stewardship are dry-sanitation, carbon dioxide to produce chlorophila

and information systems. Developing capabilities to manage water should be

a core commitment for business schools.

Companies have a opportunity to influence people for sustainable

consumption. Water footprint, intended as a number, is a meaningless

concept. To have a large impact, it is necessary to analyse the value chain in

detail, outside physical boundaries of companies. Independent verification

contributes to enhance measurement and social media perception to rebuild

corporate image around trust among communities and business.

Panel Discussion

Networking Dinner June 11th 2013, 19:00 to 22:00 Reed Hall, University of Exeter

South West Water generously sponsored a networking dinner for

participants, and an opportunity to reflect on the day.

Chris Loughlin talked about the commitment of South West Water with

WaterAid programmes to access water and sanitation in developing

countries, remarking that just one pound can help a child to access water

for a month!

Daniel Yeo presented some of the programmes and initiatives led by

WaterAid in low-income areas, remarking that access to water and

sanitation reduces the incidence of diahorrea and other diseases, and

improves women´s lives through straightforward and low-cost solutions to

pump water. Participants were encouraged to support voluntary

fundraising. A total of £300 was collected.

Day two – June 12th 2013 – Reed Hall,

University of Exeter

The Coca Cola Enterprises Challenge

How can businesses find innovative ways to minimize water impacts throughout

their entire value chain?

The Judging Panel was comprised of:

• Joe Franses – Director of Corporate Responsibility & Sustainability at Coca-

Cola Enterprises

• Jean-Paul Jeanrenaud - Director of Corporate Relations at WWF

International

• Stephen Jollands – Lecturer in Accounting at the University of Exeter

Business School

Team University Team

members Summary of proposal

< 34H20

Rotterdam

School of Management, Erasmus University

Dan Beseda

Robin Rietveldt Corianne Oosterbaan

CCE should look upstream, become more visible within

key producer networks, build high trust, collaborative relationships with innovators and share best practice throughout the industry.

Aguacero' or

'Downpour'

University of Exeter, Instituto

Politécnico Nacional de México

Nicholas Himowicz Juan Azuara

Sara Martínez

An overarching framework focused on effective stakeholder management. This framework provides CCE with a structure and process for setting challenging,

collective water stewardship goals, achieved in collaboration with stakeholders across the value chain.

Audencia

Audencia Nantes School of Management

Heidi Reed Yann Pichot Stefan Gallard

Recommended CCE go beyond the boundaries of the soft drinks industry and build cross sector, cross market , system level responses to the risks associated with ineffective water stewardship.

Corporate

WaterLinks

UCD Michael Smurfit Graduated Business School

Joel Muthukattil Pamela Uddin Preeti Mokaria

An alternative approach, highlighting CCE’s capability to educate at the community level to improve water stewardship.

EGADE MX

EGADE Business School, ITESM Mexico

Berta Rubio Rene Salazar Ricardo Peña

Focused on creating the space for innovation and leveraging innovative capabilities outside of the existing CCE business boundary. The team proposed this could be achieved through a focus on people and process; leveraging the potential dynamic capability of the broader value chain.

H2OPE

Ashridge Business School

Christoph Bahrdt Jaime Guzman Pedro Vieira

CCE should step back beyond the boundary of the value chain and look for collaborative, industry-level solutions. There is minimal competitive advantage to be found through improved water stewardship; therefore CCE should draw on Nike’s leadership on chemical discharge in the textile industry to build a systems level, industry wide response for water stewardship.

I mperial

College Water

Management

Imperial College London

Josh Burke Emma Lupton Jodie Lahon

CCE should look to improving the science-business interface; applying good science to good business through adaptive co-management techniques.

Jengu

Imperial College London

Tom Lorber Matthew John Charles Naud

Focused on the consumer education theme, suggesting CCE should take a leading role in redefining consumption through ‘closed loop’ business model approach. Ideas such as ‘own bottle’ vending-kiosk services, harvesting plastic waste and identifying potential waste sources that might be used as raw ingredients.

Team University Team

members Summary of proposal

Kentvironment University of Kent

Karen

Cresswell Ecem Urun Ozkan Gul

Focused on supply chain innovation through collaboration,

suggesting innovation throughout the value chain- and outside of the existing ‘four walls’- will achieve significantly higher value results than a relentless focus on internal innovation.

Oxford

Brookes

Oxford

Brookes University

Sarah Rogers Stephane Portes

Ankur Lakhanpal

Proposed a ‘water trade certification system’ to progress water stewardship solutions at a global, institutional level. This scheme could be self-funded through a ‘1 cent per

bottle’ consumer contributions- enabling water standards at source and funding an independent ‘water think thank’ focused on innovative water stewardship technology and process improvement.

Smurfit

Business

School

Smurfit Bussiness Shool,

University College of Dublin

Matthew Fahy Shane

Jackson Veronica Poblete

Using collaboration and partnerships as a key principle of effective value chain management, the team proposed CCE adopt ‘supply-based continuity’ approach- focused on

supplier outcomes, enabling suppliers to thrive and implementing a cost-based pricing model.

Stream of

conscience

University of Exeter

Joanna Gilroy Anthony Cooke Alexia Massey

CCE should look deeper into the value chain and tackle the water embedded in their ingredients. Focusing on sugar beet, CCE should look to plant science, agronomy and soil-science to minimise value destruction, maximise value creation and build long term resilience.

The Amen University of Birmingham

Gokul Karunakaran James Shallcross Mike Le Quelenec

Urged CCE to nurture broad, sector-crossing collaborations to gain critical mass and influence systemic, institutional change.

Three

Horizons

Consultancy

University of Exeter, Queensland University of Technology

Kirsty O'Connell Lee Sherwood Erdoo Karen Adu

Highlighted a range of tangible opportunities for CCE across the value chain- including treatment, supply and consumption stages. Drawing on ideas such as reducing sugar content, post-discharge opportunities and a water innovation hub, CCE should regard sustainability as ‘the future way of doing businesses’.

Water Wise University of Strathclyde

Cristina Palazzi Luis Adler Shahabas Nishtar

Genetically modified sugar beet is the solution to reducing water embedded throughout the value chain. Highlighting the proven benefits of GM sugar beet in the USA, Waterwise proposed CCE build partnerships with key stakeholders to lobby for introducing GM sugar beet into UK agriculture.

The SABMiller Challenge

How can the private sector work with developing country governments and

other stakeholders to ensure water resources are priced at a rate that

reflects its opportunity cost while at the same time ensuring the development

needs of these countries are being met?

The Judging Panel was comprised of:

• David Grey - Former Senior Water Advisor at the World Bank and

Visiting Professor at the University of Exeter and University of Oxford

• David Grant, Senior Manager, Water Risk & Partnerships at SABMiller

• Luis Rivas-Tovar - visiting Professor of the Instituto Politécnico Nacional

de Mexico and Universidad del Rosario – Colombia

Team University Team

members Summary of proposal

< 34H20

Rotterdam School of Management, Erasmus University

Dan Beseda Robin Rietveldt Corianne Oosterbaan

A system based on water licenses and property rights per cubic meter of water. Following the Coase theory, competitive rights bargain to generate the most efficient pricing alternative. Intervention to guarantee community ownerships.

Aguacero' or

'Downpour'

University of Exeter, Instituto Politécnico Nacional de México

Nicholas Himowicz Juan Azuara Sara Martínez

A proposed framework for inclusive participation around water costs. Economic, social and environmental costs, plus collaboration & partnering and innovation could drive to a fair tariff. Each stakeholder can collaborate using their strengthness

Audencia

Audencia Nantes School of Management

Heidi Reed Yann Pichot Stefan Gallard

Involved building trust among traditional investors and local communities, and a scheme for microfinancing through community development cooperatives. Expected outcomes are improved productivity and water savings.

Corporate

WaterLinks

UCD Michael Smurfit Graduated Business School

Joel Muthukattil Pamela Uddin Preeti Mokaria

Looking at corporate water links it is possible to drive scalable water projects. It requires reputation building, a marketing strategy and involvement of stakeholders. It is an opportunity to develop branding awareness around water for responsible drinking and joining brands around water stewardship initiatives.

EGADE MX

EGADE Business School, ITESM Mexico

Berta Rubio Rene Salazar Ricardo Peña

From a wide understanding about ideal models and real challenges around water pricing, it is necessary to explore stakeholders' willingnes to trigger action, create wealth together and be aware about quality of life.

H2OPE

Ashridge

Business School

Christoph

Bahrdt Jaime Guzman Pedro Vieira

Engaging with governments in developing countries to

enforce redistribution. It is possible to introduce grant funding to face times of scarcity

I mperial

College Water

Management

Imperial College London

Josh Burke Emma Lupton Jodie Lahon

A model for catchment water trading, generating surplusses and enhancing local investments. It works as a carbon trade scheme in a local context. The best data available needs to include small farmers.

Jengu

Imperial College London

Tom Lorber Matthew John Charles Naud

A pricing strategy involves stakeholder engagement, willingness to pay and a ecosystemic approach to create the narrative for shared value for water. Creating value, not just price, helps to preserve local ecosystem balance.

Team University Team

members Summary of proposal

Kentvironment University of Kent

Karen Cresswell T.Ecem Ozkan Gul

Presented a framework focused on cost-benefit, cost-effectiveness and contingent valuation. Regarding the different expectations of stakeholders, it is possible to build trust, solidarity and leadership.

Oxford

Brookes

Oxford Brookes University

Sarah Rogers Stephane Portes Ankur Lakhanpal

A global system for pricing water could contribute to close the gap berween developed and developing countries. It is also enhanced by a water think tank and a water trade balanced score card, to introduce financial, operational and human metrics

Smurfit

Business

School

Smurfit Bussiness Shool, University College of Dublin

Matthew Fahy Shane Jackson Veronica Poblete

A water pricing water process starts with stakeholder selection to involve partners, and pooling resources to reduce the burden of capital costs. It needs supply management to drive prices down and enhance sustainable consumption.

Stream of

conscience

University of Exeter

Johanna Gilroy Anthony Cooke Alexia Massey

Starting from a future perspective of SABMiller's impacts on water stewardship in 2020, the team proposed a “Dynamic Water Census”: a system to optimize water efficiency along economy through transparent and accurate information. Disclosure of information allows cooperation and co-creation, and facilitates the flow of cash into the system.

The Amen University of Birmingham

Gokul Karunakaran James Shallcross Mike Le Quelenec

Water pricing creates a new commodity, then, it is possible to develop based on not monetizing water from a collaborative approach, understanding needs, setting targets, defining monitoring criteria, agreeing sanctions an enforcing systems in place. The need of the community is the need of the company.

Three

Horizons

Consultancy

University of Exeter, Queensland University of Technology

Kirsty O'Connell Lee Sherwood Erdoo Karen Adu

Proposed “price resilience” as an strategy to develop a basic price structure supported on real water costs and behavioral management through stakeholder engagement

Water Wise University of Strathclyde

Cristina

Palazzi Luis Adler Shahabas Nishtar

Following a full-price approach, it is possible to classify

companies in different tiers of water intensity, giving an accurate representation of the opportunity costs. Involving stakeholders, payment for water is better than subsidies.

The Judging Panel presented University of Exeter with the SABMiller

prize and Oxford Brookes with the CCE prize.

CCE and SABMiller representatives expressed their appreciation to

the innovative work of all teams, and noted the work of the

organizing committee.

The Imperial College Water Management, Jengu, Three Horizons

Consultancy and Audencia teams were also praised for their

presentations.

Awards Ceremony

Professor David Grey made some suggestions on

presentations to participants, based on his observations

during judging:

Present your solution or your insight first.

Be clear and straightforward. If you capture your

audience, you could develop your proposal later.

Introduce no more than three key points to explain your

proposal.

Be clear in terms of activities, key performance

indicators and next steps.

Be ready to present it fast. Business people are also

busy people, and having just a few minutes to introduce

yourself and your ideas is also a challenge to improve

your career skills.

Organizing Committee

Members of the Organising committee would like to thank all who

contributed to the success of this event. The members of the committee for

2013 were:

Andrea Bernal-Pedraza - Topic Advisor

Elaine Yong - Partner & Speakers Coordinator

Eman El-Gassier - Logistics Coordinator

Fuji Kimura - Project Manager & Event Host

Mithil Shah - Media Planner

Paula Siabato-Tobon - Marketing & Logistics Coordinator

Sahana Bangalore-Amarajyothi - Participants Coordinator