At EXCEL’s spring 2010 Roundtable—just prior the GLOBE 2010 conference— the partnership collectively discussed how EXCEL members can lead their companies into the future in a way that anticipates, reacts and evolves with the trends that are shaping our world.  The roundtable first looked back at the previous ten years of corporate sustainability to identify major influences and factors that changed the business playing field. 

Eight major themes emerged from this discussion, focusing on major influences from the past and how they will impact the next decade.  They are as follows:

Rapid rise of social media - There has been a major increase in the use of social media to disseminate information and increase global connectivity.  Issues rise and fall very quickly and anyone can gain credibility through popularity without proper due diligence or critical analysis.   There is an overwhelming need for corporations to tap into social media to educate their customers/clients, disseminate accurate and transparent information that is palatable for the mainstream.  New social media tools should be leveraged by corporations to highlight successes and major achievements, demonstrate innovation, and engage stakeholders more effectively.

Sustainability reporting and performance - Sustainability reporting and performance: Corporations better understand how to communicate (e.g. CSR reporting) with their stakeholders and having guiding principles has helped EXCEL partners navigate through the complexity of sustainability.  Some organizations have felt the burden of an overwhelming amount of data that has to be generated for the regulatory environment/CSR reporting and it is not always meaningful in pushing performance.   This highlights the need for corporations to communicate what is important in order to push performance balanced by stakeholders needs for transparency.  Additionally, this is most likely the growing pains of CSR reporting and it will eventually become standardized and institutionalized as financial reporting is.  

Stakeholder and NGO relations - Stakeholder and NGO relations: Stakeholder engagement has never been more important than the last decade and will continue to be important into the future.   Corporations increasingly need to demonstrate what they stand for and engage their stakeholders based on their willingness to collaborate and help in providing solutions. 

The 'Green' consumer and brand - The ‘Green’ consumer and brand: The last ten years has failed to produce a ‘green consumer,’ and this could be because consumers are finding it difficult to understand what is authentic and what is not.  The future of green products will be that sustainability is embedded in all products and then consumers will choose based on quality and performance.  Brand is more important and vulnerable than ever. 

Scarcity and rising commodity/energy prices - Increasing resource pricing due to scarcity and rising demand are highly influencing corporate risk analysis, prioritizing efficiency, as well as, sustainability performance. 

Complexity of emerging issues - Complexity of emerging issues:  Complexity of social (e.g.. population, poverty, social justice, license to operate, human resources) , environmental (e.g. climate change and water issues), and economic (e.g. full cost accounting, capital decision making, pricing carbon) issues have grown.  Forecasting has become much more difficult and it has been easier to give boards the most likely scenario than too many options.  

Corporate and civil society as regulator - Corporate and civil society as regulator: The government has ceased to lead on sustainability issues.  Corporations have succeeded to some extent by self-regulating, but the public and civil society organizations are becoming the regulators in the absence of government.  As the global community starts to feel the pain of scarcity, higher prices, and environmental degradation, corporations can help to minimize this pain by creating social and environmental value through their business.

NIMBY still prevalent - 'Not-in-my-back-yard' remains a major challenge and demonstrates more than ever the need for businesses to engage stakeholders and to build social value into their operations. 

Looking at the past helped EXCEL Partners define where corporate sustainability is going.  Speakers from our outstanding roster of EXCEL companies and invited guests (such as, the Cleantech Group, and  Interface ) identified what they think the next ten years of business and sustainability trends will look like and discussed ways in which they are preparing their companies for the future.  The following highlights EXCEL’s top 5 social, environmental, and economic forces of change that corporations will need to prepare themselves for in their sustainability strategies as discussed by the EXCEL partnership:

Chris Henderson, a Managing Partner of the EXCEL Partnership and Chair of The Delphi Group, summarized the day with his decade-ahead perspective giving his advice on the big three questions corporate sustainability leaders should be asking themselves in preparation for the next ten years: 

1. The Big Social Question:  What values will Society attach to the environment and sustainability?
2. The Big Environmental Question: What will be the civil society accord which determines how we protect the environment?
3. The Big Economic Question: How can corporate sustainability add tangible and sustained economic value for society?

Henderson identified 3 ‘Sweet Spot’ opportunities with regards to the future of corporate sustainability:

1. Forward looking corporate sustainability value platforms will generate the great business ideas.
2. Creating sustainability value chains (not supply chains) through economic relationships.
3. Relationships with social groupings will be the affirmation basis for corporate action.

The leading sustainable organizations will be more integrative, more externally engaged, and more value oriented in the next decade. 

For more information regarding the EXCEL Partnership and the Spring 2010 Roundtable, please contact Ted Ferguson, Vice President of The Delphi Group and Partnership Coordinator for EXCEL at .(JavaScript must be enabled to view this email address) . 

EXCEL is a unique learning partnership of major Canadian corporations who are committed to environmental and sustainable development leadership through continuous improvement of environmental and social performance. The group functions in some respects as Canada’s ‘inner circle on sustainability’ for leaders of some of the country’s largest companies.  The partnership has a long and proud history being founded in 1995. EXCEL was founded by the GLOBE Foundation  and is managed by The Delphi Group . EXCEL is also a member of the World Business Council for Sustainable Development’s Regional Network. 

As Canada’s leading forum for corporate sustainability strategy, the EXCEL Partnership has always had a strong focus on promoting best practices and innovation.  Members are Canada’s corporate leaders in developing strategies and solutions to sustainability challenges, EXCEL companies maintained that such strategies can boost competitiveness and performance while delivering tangible environmental and social benefits for Canada and Canadians.