1

Quarterly Member Insights:

See Our Changing World More ClearlyWebinar | BSR Connect

© 2021 Business for Social Responsibility

Speakers

2

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

3

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.

4

01Resilient Business Strategies

BSR Report

Resilient Business Strategies

Decisive Action for a Transformed World

5

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

resilience@bsr.org

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.

8

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 resilience@bsr.org to discuss how your company can become more resilient.

How BSR Can Help

9

02Climate Insights

What will corporate climate action look like in 2025?

10

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

11

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

12

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?

13

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.

15

04Bonus Member Insights

Bonus Member Insights

16

EU Mandatory

Due Diligence

Legislation

Double

Materiality

Employee

Mental Well-

being and

Resilience

Generation

Equality Forum

Progress on

Transparent and

Resilient

Sourcing

17

05Q&A

18

Thank you to our SPARK members

19

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