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Katrin Muff PhD, Business School Lausanne
February 2017
Translating the Sustainable Development Goals
into a tool for business
Lessons from the field | Challenges | New tools
The SDG CompassA structured approach to work with the SDGs
(developed in 2015 by GRI, UNGC & WBCSD)
Step 1: Understanding the SDGs
Step 2: Defining priorities
Step 3: Setting goals
Step 4: Integrating
Step 5: Reporting & communicating
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The SDG CompassMakes sense, but
very generic
The practical challenges:
Difficult to apply to my business reality
Suggestions:
• Enrich the SDG Compass with processcontent & know‐how
• Address the translation issue of the SDGs to local business
• Providing a pathway for concrete strategicprototypes
How do I engage outside the boundaries
of my business to develop these new long‐
term business opportunities?
Enriching the SDG compass with process content
Translating the SDGs into a tool for business
Step 1: Understanding the SDGsTranslating the SDGs into local business relevance
Step 2: Defining prioritiesPrioritizing relevant sustainability issues from the outside‐in perspective
Step 3: Setting goalsCo‐creating prototypes from an ideal future vision with stakeholders
Step 4: IntegratingPrototyping, adopting, implementing, assessing the positive impact
Step 5: Reporting & communicatingScaling up, including reporting & communicating
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Step 1:UNDERSTANDING THE SDGs
Translating the SDGs into local business relevance
Tool: The Gap Frame
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World Economic Forum
Global Risk Report 2016
• Failure on climate‐change mitigation & adaptation
• Large‐scale involuntary migration
• Water crises
• Interstate conflict
• Unemployment or underemployment
• Cyberattacks
• Profound social instability
• Asset bubble
• Fiscal crises
• Food crises
• Terrorist attacks
Issues selected by 700+ experts globally that ranks above average in terms of likelihood & impact
Additional issues in terms of governance
sdfsdfdf
Ensuring global and local relevance
Color codes: the lighter the better
1st reportsdgindex.org
SDSN (June 2016)
• Politically negotiated and globally approved• Our shared priorities until 2030
Their priorities: • Eliminating poverty & hunger• Securing access to water /
sanitation / education / for everybody
• «Leaving no child behind»
Limitations to consider:
• Focus on least developed and developing countries «the Global South»
• Developed countries withadditional issues
The SDGs:
Adjustments needed to ensure a relevance in every country
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Translating the SDGs into local business relevance
THE GAP FRAME
Towards a safe space for all of us
This is what we aim at(not perfection)
The ideal value (unlikelyto be attained)
Worst performers or lowest values are
Switzerland: GF Score 6.2
Priority dimension: Planet(inner circle)
Av. 4 dimensions: 7.4 (outer circle)
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The Gap Frame SDGs translated into local business relevance
Switzerland: GF Score 6.2
The world: GF Score 5.1
GF STAMP: all key info
Immediate focus where attention is needed!
• Inner circle: priority dimension (GFScore)
• Outer circle: the average of the 4 dimensions
GAP FRAME SCORE (0‐10)Lowest value dimension (Priority Dimension) as country comparison (strong sustainability)
THE GAP FRAME
A new look at the state of the world
www.gapframe.org• 24 issues measured with 68 globally relevant indicators using public available data• Available for 197 countries, 18 larger regions, sorting by issue, and free download access• Developed with 18 experts prototyped in multi‐step, 14‐month process by the SSH & BSL
A balanced pictureacross all continents (not just North‐South)
Priority dimension: GovernanceRed = Critical
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The Gap Frame: Switzerland and it’s top 8 issues
Tools
GAP FRAME
Enriching the SDG compass with process content
Translating the SDGs into a tool for business
Step 1: Understanding the SDGsTranslating the SDGs into local business relevance
Step 2: Defining prioritiesPrioritizing relevant sustainability issues from the outside‐in perspective
Step 3: Setting goalsCo‐creating prototypes from an ideal future vision with stakeholders
Step 4: IntegratingPrototyping, adopting, implementing, assessing the positive impact
Step 5: Reporting & communicatingScaling up, including reporting & communicating
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Step 2:DEFINING PRIORITIES
Prioritizing relevant sustainability issues from an outside‐in perspective
Tool: Business Sustainability 3.0
Most leading companies and executives report that their commitment to sustainability is strong and increasing
Yet not every company has seen the benefits
The SDG opportunity = the outside‐in perspective
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Better Business Better World Report Business & Sustainable Development Commission at the WEF in Davos 2017:
Pursuing the Sustainable Development Goals (SDGs) could
create trillions $ in new market opportunities.
BUT HOW?
Three types of business sustainability
BUSINESS SUSTAINABILITY TYPOLOGY (BST)
Concerns
(What?)
Values created
(What for?)
Organizational perspective
(How?)
Business‐as‐usual Economic concerns
Shareholder value Inside‐out
Business Sustainability 1.0 Three‐dimensional concerns
Shareholder value Inside‐out
Business Sustainability 2.0 Three‐dimensional
concerns Triple bottom line Inside‐out
Business Sustainability 3.0 Three‐dimensional
concerns Creating value for the common good Outside‐in
Key shifts involved: 1st shift: broadening the relevant concerns
2nd shift: expanding the value space
3rd shift: changing the perspective
“Truly sustainable business shifts its perspective from seeking to minimize its negative impacts to understanding how it can create a significant positive impact in critical and relevant areas for society and the planet.”
(Dyllick/Muff 2016)
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Comment with previous slide
•Creating shareholder value by embracing opportunities and managing risks from economic, environmental and social challenges
•Managing for the triple bottom line
•True Business Sustainability – providing a significant positive value to society and the planet
Business Sustainability 3.0
Inside – Out Outside ‐ In
•Risks & opportunities for current business
•Materiality
•Reducing negative impacts
•New white‐space opportunities
• Focus on positive contributions
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Example Food in Switzerland
Country priority issues
1. Carbon quotientCarbon footprint relative to net biocapacityavailable after farming
2. Sustainable consumptionCarbon consumption (incl. import), energysavings (over time)
3. BiodiversityExtinction rate of animals, protectedterrestrial habitat areas
4. Equal opportunityGINI, gender wage gap, women presence in boards and parlament
5. Clean energyRenewable energy, domestic use of solidfuels
6. OceansFishstock, phophate consumption relative to cultivated land
7. Social integrationIntegration, minority discrimination
8. Waste treatmentRecovered/recycled solid municipal waste, waste water treatment
Inside‐out (risk/opp current bus.)
Further reducing energyuse in production
Becoming an equal paycompany
Shifting to renewableenergy in production
Increasing internalrecycling
Outside‐in (new future opport.)
Reducing meat production to reduceCO2 footprint
Favoring local & seasonal productsin offer
Replacing sugar with local honey
Role‐modeling women’scontribution to decisions
Promoting renewable energy alongentire value chain
Eliminating phosphorate in agriculture
Training for refugeesRecipees from immigrants
Replacing plastic in packaging, eliminating packaging
Risks & opportunities to current business
Entirely new business opportunities
Inside‐out Outside‐in
Thought leader in healthy & happy life (body‐mind)
Dramatically reformulate food & drink
Replace meat
Reduce water use in production
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Tools
GAP FRAME
BST 3.0
Enriching the SDG compass with process content
Translating the SDGs into a tool for business
Step 1: Understanding the SDGsTranslating the SDGs into local business relevance
Step 2: Defining prioritiesPrioritizing relevant sustainability issues from the outside‐in perspective
Step 3: Setting goalsCo‐creating prototypes from an ideal future vision with stakeholders
Step 4: IntegratingPrototyping, adopting, implementing, assessing the positive impact
Step 5: Reporting & communicatingScaling up, including reporting & communicating
Step 3:SETTING GOALS
Co‐creating prototypes from an ideal future vision with stakeholders
Tool: The Collaboratory
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Envisioning an ideal futurewhere the issue is resolved
A co‐creative multi‐stakeholder process for solving wicked problems
Otto Scharmer: . Theory U: Leading from the Future as it Emerges ‐Addressing the blind spot of our time (www.presencing.com)
A dialogue unlike most others
Picture: Collaboratory in Hongkong on «Green City»
Exploration of future options outside the current businesstogether with the next generation and key stakeholders
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Harvesting ideas from the future
A list of prototype ideas to develop: 1. ………..2. ………..3. ………..4. ………..5. ………..
BACK‐CAST FROM THE FUTURE
Step 1: Understanding the SDGsTranslating the SDGs into local business relevance
Step 2: Defining prioritiesPrioritizing relevant sustainability issues from the outside‐in perspective
Step 3: Setting goalsCo‐creating prototypes from an ideal future vision with stakeholders
Step 4: IntegratingPrototyping, adopting, implementing, assessing the positive impact
Step 5: Reporting & communicatingScaling up, including reporting & communicating
Tools
GAP FRAME
BST 3.0
Collaboratory
Enriching the SDG compass with process content
Translating the SDGs into a tool for business
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Step 4:INTEGRATING
Prototyping, adopting, implementing, assessing the positive impact
Developing «outside‐in» strategiesFOR LONG‐TERM BUSINESS SUCCESS
Elements:
• New forms of cooperation
• Changing the rules of the game
• New business models
• Role of leadership and culture
• A new narrative inside the corporation
Prototypes inspired by the future
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Step 5:REPORTING & COMMUNICATING
Scaling up, including reporting & communicating
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Related Executive Education for companies and individuals:• The Impact Leadership Program (developed with 15 CEO‘s to lead beyond their business) – a 12 month
executive program for companies to sign up for (3 participants and 1 project) – in cooperation with UNGC CH
• The Diploma in Sustainable Business – a 9‐month part‐time Executive Program of BSL & University St. Gallen
Contact: Simone Hänni, BSL Lausanne: simone.haenni@bsl‐Lausanne.ch
Literature and support material:• Thoms Dyllick & Katrin Muff: Clarifying the Meaning of Sustainable Business: Introducing a Typology from
Business‐as‐usual to True Sustainability. Organization & Environment, Vol. 29, No. 2, 2016, 156‐174.
• Thomas Dyllick & Katrin Muff: What does sustainability for business really mean? And when is a business truly sustainable? In: Jeanrenaud, S., Gosling, J. & Jeanrenaud, J.P. (eds.). Sustainable Business: A One Planet Approach, Chichester: Wiley 2016, pp. 381‐407.
• Thomas Dyllick: Die Suche nach Nachhaltigkeit. In: Neue Zürcher Zeitung (Themen und Thesen), Nr. 292, 16.12.2015, 29. http://www.nzz.ch/wirtschaft/wirtschaftspolitik/die‐suche‐nach‐echter‐nachhaltigkeit‐1.18663657
• Thomas Dyllick & Katrin Muff (2016): True Business Sustainability. Little Green Bags: 2016. Video. (https://www.youtube.com/watch?v=8rwjMc‐Ziug). Auch auf Deusch: Echte unternehmerische Nachhaltigkeit.
• Katrin Muff (Ed.) (2014). The Collaboratory – A Co‐Creative Stakeholder Engagement Process for Solving Complex Problems. Sheffield: Greenleaf Publishing.
• Katrin Muff (2016): The Collaboratory ‐ A Common Transformative Space for Individual, Organizational and Societal Transformation, JCC 2016 Vol 2, 91‐108
• Katrin Muff, Agnieska Kapalka, Thomas Dyllick (2017): Translating the SDGs into relevant Grand Challenge issues for every nation and business to act on. International Journal of Management Education, Special Issue
Contact: Katrin Muff, BSL Lausanne: katrin.muff@bsl‐lausanne.ch
Enriching the SDG compass with process content
Translating the SDGs into a tool for businessTools
GAP FRAME
BST 3.0
Collaboratory
Step 1: Understanding the SDGsTranslating the SDGs into local business relevance
Step 2: Defining prioritiesPrioritizing relevant sustainability issues from the outside‐in perspective
Step 3: Setting goalsCo‐creating prototypes from an ideal future vision with stakeholders
Step 4: IntegratingPrototyping, adopting, implementing, measuring the positive impact
Step 5: Reporting & communicatingScaling up, including reporting & communicating
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Join the innovation
Start translating the SDGs into your business
opportunity!
Katrin.Muff@BSL‐Lausanne.ch
