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Our research partnership on corporate sustainability
• Survey, interviews, case studies
• >38,000 executives, managers and thought leaders
• >110 different countries
2011
2010
2012
2009
2013 2014
Report launched Tuesday, 13 January

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Companies stepping up
Source: 2010 – 2014 BCG-MIT SMR-UN GC Sustainability Survey (based on commercial data-set); BCG analysis.

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Only minority not aware of business case
Source: 2009 – 2014 BCG-MIT SMR-UN GC Sustainability Survey (based on commercial data-set); BCG analysis.

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90% say collaboration necessary
Source: BCG-MIT SMR-UN GC 2014 Sustainability Survey (based on commercial data-set with 2,587 responses); BCG analysis.

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Development towards more collaborations over time
Source: BCG-MIT SMR-UN GC 2014 Sustainability Survey (based on company data-set with 749 responses); BCG analysis

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Reputation and innovation top reasons
Source: BCG-MIT SMR-UN GC 2014 Sustainability Survey (based on company data-set with 2,587 responses); BCG analysis

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Collaborations often strategic or transformational
Source: BCG-MIT SMR-UN GC 2014 Sustainability Survey (based on company data-set with 2,587 responses); BCG analysis

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Seriously engaged firms act more across sectors
Source: BCG-MIT SMR-UN GC 2014 Sustainability Survey (based on company data-set with 2,587 responses); BCG analysis

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Netafim: Transforming the irrigation market in India
The Challenge: Raise production of rice The Solution: Drip irrigation for rice
Food for nearly half of the world’s population
• Over 95% is grown by smallholders
• Plots up to 2 hectares in size
We’re talking about small farmers, and there is no way we can reach them on our
own. We need partners who know the farmers and the culture and can help us sell
to and train them. ... There’s no way we can do it alone.
Naty Barak, Netafim Chief Sustainability Officer
"
"
• R&D with governments and universities on
cultivation of rice
• Netafim Agricultural Financing Agency (NAFA)
providing smallholders with loans quickly
• 3-day conference on drip irrigation in rice with
Water Technology Centre
201120102007
CAGR >10%
Netafim
sales $M
Sales growth 2011
+34%
EBITDA growth 2011
+59%
Source: Permira, Netafim Sustainability report, MIT SMR, BCG analysis
The Benefit: Growing more with less
$26.2M
$25.6M
$51.8M
+
Savings due to lower resource
consumption (water, fertilizer, energy)
Additional productivity benefits due to
increased yields and higher quality crops
Overall benefits of growing more with
less to 60,000 Indian farmers

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Also, difference between industries
Source: BCG-MIT SMR-UN GC 2014 Sustainability Survey (based on company data-set with 2,587 responses); BCG analysis

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What companies give (and what they receive)
Source: BCG-MIT SMR-UN GC 2014 Sustainability Survey (based on company data-set with 2,587 responses); BCG analysis

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Only 47% active in collaborations – 61% with success
Source: BCG-MIT SMR-UN GC 2014 Sustainability Survey (based on company data-set with 2,587 responses); BCG analysis

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Learning curve on sustainability collaborations
Source: BCG-MIT SMR-UN GC 2014 Sustainability Survey (based on company data-set with 2,587 responses); BCG analysis

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Keys to success in sustainability collaborations
Source: BCG-MIT SMR-UN GC 2014 Sustainability Survey (based on company data-set with 2,587 responses); BCG analysis
Success with internal
collaboration
Have a shared
language
Secure board
engagement
Timely engagement
(not all players have to be
involved all the time)
Due diligence
Right entrance and
exit strategies
Practice, practice,
practice, …
People matter

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Board commitment necessary
Source: BCG-MIT SMR-UN GC 2014 Sustainability Survey (based on company data-set with 2,587 responses); BCG analysis

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But, board engagement can be higher
Source: BCG-MIT SMR-UN GC 2014 Sustainability Survey (based on company data-set with 2,587 responses); BCG analysis

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Asia Pulp & Paper with Greenpeace in the boardroom
"Bear witness to the forest destruction caused by companies like Asia Pulp and Paper"
• Greenpeace campaigned against APP
• One of largest pulp and paper companies
APP customers stopped sourcing APP paper
• Hasbro, Kraft, Staples told suppliers to avoid sourcing paper and packaging from APP
Sources: Greenpeace website; press search; MIT SMR interview with Aida Greenbury, managing director for sustainability for Asia Pulp & Paper (APP).
APP lost clients following Greenpeace campaign against deforestation activities
APP met shareholders and Greenpeace in boardroom to discuss deforestation policy
• Non-profit The Forest Trust (TFT) helped APP
• ‘Sustainability Roadmap Vision 2020’ published in 2012
2013, APP launched Forest Conservation Policy
• Greenpeace suspended active campaigning
• Many clients came back after implementing zero deforestation policy
Many came back as result of collaboration with Greenpeace and TFT

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Key takeaways
Sustainability top management agenda item
Management consensus that
• business should collaborate on sustainability
• board involvement key
But, boards still untapped resource
Source: BCG-MIT SMR-UN GC 2014 Sustainability Survey (based on company data-set with 2,587 responses); BCG analysis