http://www.weforum.org/ Strengthening Public-Private Cooperation to Accelerate Sustainable Development - Christine Lagarde, Managing Director, International Monetary Fund (IMF), Washington DC - Feike Sybesma, Chief Executive Officer and Chairman of the Managing Board, Royal DSM, Netherlands Chaired by - W. Lee Howell, Head of Global Programming, Member of the Managing Board, World Economic Forum
http://www.weforum.org/ Mainstreaming the Circular Economy Model The circular economy can be instrumental in decoupling growth from natural resource constraints. The aim of this workshop is to explore how new financing models and policy approaches can accelerate collaboration to scale-up the circular economy in key regions and across global value chains. This session supports the work of a new global public-private Platform for Accelerating the Circular Economy (PACE), co-chaired by UN Environment, the Global Environment Facility and Royal Dutch Phillips in collaboration with the Ellen MacArthur Foundation and Accenture Strategy. - Charles Arden Clarke, Head, 10YFP Secretariat, UN Environment Economy Division, United Nations Environment Programme (UNEP), Mexico City - Herman Betten, Global Director, External Affairs, Royal DSM, Netherlands - Jean-Louis Chaussade, Chief Executive Officer, SUEZ, France - Quentin Drewell, Principal, Strategy, Accenture, United Kingdom - Facundo Garreton, Member of Congress, Argentina; Young Global Leader - Michael Goltzman, Vice-President, Global Public Policy, Environmental Sustainability and Social Impact, The Coca-Cola Company, USA - Naoko Ishii, Chief Executive Officer and Chairperson, Global Environment Facility, USA - Kai Mykkänen, Minister for Foreign Trade and Development, Ministry of Foreign Affairs of Finland, Finland - Stuart Pann, Chief Supply Chain Officer, HP, USA - Mathy Stanislaus, Senior Adviser, World Economic Forum - Jeff Turner, Vice-President, Sustainability, Royal DSM, Netherlands - Frans van Houten, President and Chief Executive Officer, Royal Philips, Netherlands Introduced by - Antonia Gawel, Head of Circular Economy Initiative, World Economic Forum With - Stephen Engblom, Senior Vice-President; Global Director, AECOM Cities, AECOM, USA - Khaled Fahmy, Minister of Environment of Egypt - Jean-Philippe Hermine, Vice-President, Strategic Environmental Planning, Renault-Nissan Alliance, Netherlands - Simon Boas Hoffmeyer, Director, Group Sustainability at Carlsberg Group, Carlsberg Group, Denmark - Mahmoud Safwat Mohieldin, Senior Vice-President, 2030 Development Agenda, UN Relations and Partnerships, World Bank, Washington DC - Kevin Moss, Global Director, Business Center, World Resources Institute, USA - Clay Nesler, Vice-President, Global Sustainability and Industry Initiatives, Building Technologies and Solutions, Johnson Controls, USA - Ligia Noronha, Director, Economy Division, United Nations Environment Programme (UNEP), Mexico City - Astrid Schomaker, Director, Global Sustainable Development, European Commission, Brussels - Francis Sollano, Co-Founder and Executive Director, Youth For A Livable Cebu (YFLC), Philippines - Malek Sukkar, Chief Executive Officer, averda, United Kingdom - Tom Szaky, Founder and Chief Executive Officer, TerraCycle, USA - Jean Christophe Taret, Senior Vice-President, Strategy, Veolia, France Christian Wessels, Deputy Group Managing Director, TGI Group, Nigeria; Young Global Leader Facilitated by - Sharan Burrow, General Secretary, International Trade Union Confederation (ITUC), Belgium
Jennifer Maravillas for HBR With the recent spate of firms in the news over sexual harassment allegations and charges of gender bias, it is obvious that an issue many in business had thought was “done” is instead far from finished. Fostering corporate cultures which make half your employees feel somewhere between unengaged and unsafe is becoming risky and unsustainable. A lot of companies are doubling down on efforts to finally “crack” the gender issue. Most companies now have more gender-balanced talent pools, especially at the early-to-mid-career levels, and are looking for ways to make sure progress continues at the mid-to-upper levels. But the ones who really understand the issue see gender balance as not just a numbers game but part of a broader, more strategic cultural shift that includes developing leadership teams representing geographically diffuse markets. These leaders are recognizing that this balance drives the innovation and market understanding they need for other key business transformations. Without balance, they simply won’t understand the world that’s emerging. Dutch-based Royal DSM is a case study of multiple parallel transformations – in their business and in their leadership balance. The CEO is convinced that the one feeds the other. “I’m absolutely convinced that the evolving balance of the top management team is a key factor in our success and our ability to change,” Feike Sijbesma, the 57-year-old CEO of Royal DSM, the $8 billion, global company active in health, nutrition and materials science, told me. I reached out to him because I was impressed with how he steered DSM from its chemicals company past to its broad, science-based innovator present; from a Dutch company to a global player; and from a completely male-run organization to a more gender balanced leadership team. How did he do it? Sijbesma credits three steps: Setting a vision that connects the goal to business success Engaging men of the company’s dominant nationality Building skill in working across nationality and gender differences (including with your suppliers and search firms) Setting a vision that connects the goal to business success Most companies have a very broad definition of “diversity,” which can make implementing change and measuring progress a challenge. What will success look like? What indicators will you track? Where is the business imperative? They tend to frame gender as one diversity dimension among many. This makes it near-impossible to invest the time and management focus needed to effectively adapt to a gender balanced workforce and customer base. (And research has shown that different approaches are often needed to foster gender balance, as opposed to other diversity dimensions.) DSM prioritized two diversity dimensions, transparently and strategically: the nationality and gender balance of their management. “We looked at all the research,” Sijbesma explains, “and it was clear that these were the two factors that had, by far, the biggest impact on the bottom line.” DSM moved through three phases. First, they were an entirely Dutch and male company. The senior leadership team of 35 was dominated by Dutch men. They started by relocating some key positions around the world, staffed by other nationalities. The second phase was to attract and develop more local and international people. “Now,” says Sijbesma, “we are in the third phase, where we are moving international people across geographies for their development and the company’s benefit.” The top team of 35 is now 60% non-Dutch and includes 7 women. “Not good enough,” he admits, “but incredibly different. And totally transformational.” To support the balancing of nationalities in leadership, DSM moved away from having a single global headquarters in Heerlen, and based different functions in each region (Singapore, Shanghai, New Jersey, and Basel). “This means that instead of having all the top 50 executives in the Netherlands (which isn’t very attractive to top talent from China, the U.S., or Brazil), we have global hubs that offer interesting jobs in a variety of locations.” Engage men of the company’s dominant nationality Many companies, especially in America, are well-meaningly focused on empowering “out-of-power” or under-represented groups. This has led to the spread of affinity groups, or employee resource groups (ERGs). These have the unintended consequence of minimizing these groups’ overall significance, separating them from each other, and keeping them away from real networks of influence. Companies then wonder why they aren’t making more progress on their diversity KPIs despite lots of noise and activity devoted to the challenge. Related Video How Different Countries Expect Women to Show Authority In some cultures, there's a big gap between male and female leaders. Save Share See More Videos > See More Videos > An approach that often yields better results, in my experience, is helping today’s in-group members become ready and accountable for hiring and promoting people who may not look like them, but who do look like the company’s customers. It’s good for the business, but it’s not easy. CEOs need to be ready to explain the necessity of the shift. That’s what Sijbesma tried to do. In the year 2000, DSM’s top 350 executives were 75% Dutch and more than 99% male. Today, it’s 40% Dutch and 83% male (it’s not uncommon for companies to make faster progress on nationality than gender). Sijbesma aims to bring the male ratio down by 2% per year and down below 75% by 2025. He is prioritizing sustainability and credibility more than speed. He admits it has not always been an easy ride. “The reaction of some of the Dutch guys is to loudly claim that if you are male and Dutch you no longer have a future at DSM. I remind them that I am male and Dutch, and that we share an obligation to change the profile of our management to guarantee our company’s continued success in the future. I ask them to help me build that group of people, because it’s better for the business.” Build skill in working across nationality and gender differences (including with your suppliers and search firms) Companies are starting to acknowledge the pervasiveness of bias, as the proliferation of unconscious bias training for middle managers demonstrates. While these are laudable efforts, the research shows they can backfire. People are tired of what they see as “identity politics” and most don’t appreciate being called biased. Moreover, emphasizing that “everyone is a little bit biased,” as trainings often do, can make bias seem understandable and acceptable, and inadvertently reinforce negative stereotypes. A subtle but impactful alternative is to make “managing across differences” a vaunted leadership skill. If you visibly promote and reward those who do it well, actions speak louder than unmet gender targets. For Sijbesma, the crucial issue is to build awareness of dominance – and its impact – among the dominant group. “You have no idea of the culture you have built in your organization until you listen to the people who are not a natural part of it.” The company mainstreamed both gender and culture training into all its leadership development programs. “There is no way for companies to become truly global players if their leaders haven’t learned the 21st century leadership skill of inclusion. If we want to draw on the world’s best talent, and connect deeply with customers across hugely disparate cultures, we need to teach them.” The same education may be necessary outside the company, with suppliers and search firms. DSM found it had to lean very hard on search firms used to find fresh blood for its top team. “Search firms want to close the deal as fast as they can, so they propose all the usual candidates that they have in their networks. I had to really insist that I was looking for other nationalities and women. Some of those searches, like the one, three years ago, for our CFO, took twice as long as normal. I was absolutely determined. I took a lot of heat, both from the search firms and my own colleagues. But you need to know what you want, and what the priorities really are – and then accept some short-term discomfort. Our CFO is now a great asset to the company, in many aspects.” The pieces all fit together: a compelling vision helps get your core constituency on board, and training them in inclusion skills helps them execute on it. “People are not discriminatory,” says Sijbesma, “sometimes they are simply unaware and unskilled.” He has learned that the “myopia of dominant groups to see their standards as normal” is a key obstacle. Building awareness, engagement and skills has allowed him to build balance, fuel innovation and stimulate growth. He’s celebrating, and DSM is flourishing. In 115 years of existence, its profits have never been so high, nor its share price so strong.
http://www.weforum.org/ The audio of this session is the original language as used by the panellists, alternating between Mandarin Chinese and English. China is taking the lead in globalization with the One Belt, One Road initiative and proposals for new trade agreements. How can business champion a new chapter of global and inclusive growth? This session was developed in partnership with CCTV. - Huang Yiping, Professor, National School of Development, Peking University, People's Republic of China - B. G. Srinivas, Executive Director and Group Managing Director, PCCW, Hong Kong SAR - Timothy P. Stratford, Managing Partner, Beijing, Covington & Burling, People's Republic of China - Feike Sybesma, Chief Executive Officer and Chairman of the Managing Board, Royal DSM, Netherlands - Wang Hong, Executive Vice-President, China Merchants Group, Hong Kong SAR Moderated by - Li Sixuan, Anchor, China Central Television (CCTV), People's Republic of China
http://www.weforum.org/ The climate-smart investment opportunity is estimated at nearly $23 trillion in emerging markets between now and 2030. Following the US pull-out from the climate agreement, what leadership is needed to seize this opportunity? Speakers: - Victor L. L. Chu, Chairman and Chief Executive Officer, First Eastern Investment Group, Hong Kong SAR - Joaquim Levy, Chief Financial Officer, World Bank Group; Managing Director, World Bank, Washington DC - Feike Sybesma, Chief Executive Officer and Chairman of the Managing Board, Royal DSM, Netherlands - Changhua Wu, Director, China and Asia, Office of Jeremy Rifkin, People's Republic of China - Zhang Xinsheng, President, International Union for Conservation of Nature (IUCN), Beijing Moderated by: - Bronwyn Nielsen, Editor-in-Chief and Executive Director, CNBC Africa, South Africa
According to reports, President Trump is expected to pull the U.S. out of the Paris climate agreement. This is a horrible decision for business, the United States, and humanity. In this moment, running through the details of the agreement itself, which commits nearly every country in the world to significant energy and carbon reductions, is not vital. Nor is what we could analyze — from what will actually change in how the U.S. uses energy or emits carbon if the agreement is abandoned (it’s not a straightforward discussion by any means) to what states, cities, and citizens can do as a result. But the key point I want to make here is that the business community does not want to leave the Paris climate agreement. Let me repeat: Even though Trump and his team keep telling everyone that climate action is somehow bad for the economy, most companies don’t agree with that assessment. On May 10, in an attempt to influence the president’s thinking, 30 CEOs wrote an open letter to Trump, taking out a full-page ad in the Wall Street Journal. The opening reads, “We are writing to express our strong support for the U.S. remaining in the Paris Climate Agreement.” I won’t reprint the whole letter here, but please read it. It is, however, worth taking a moment to look at the companies whose CEOs made their views known: 3M Company Allianz SE Bank of America Corp. BROAD Group Campbell Soup Company Cargill Inc. Citigroup Inc. The Coca-Cola Company Corning Incorporated Cummins Inc. Dana Incorporated The Dow Chemical Company E.I. DuPont de Nemours & Company General Electric The Goldman Sachs Group, Inc. Harris Corporation Johnson & Johnson JP Morgan Chase Kering Morgan Stanley Newell Brands Inc. Pacific Gas and Electric Company Procter & Gamble Company Royal DSM Salesforce Solvay Tesla Inc. Unilever Virgin Group The Walt Disney Company This is not a tree-hugger group. And it’s not a list of usual suspects from consumer-facing brands that may want to impress consumers or seem like they don’t have a huge carbon footprint. Nor is it a list that makes you think the money men want out of Paris. Heavy industrials are here. The biggest banks are here, and in other communications, too — see the letter to G7 leaders from hundreds of institutional investors, representing $17 trillion in assets. Related Video Whiteboard Session: The Business Case for Sustainability Account for the intangibles. Save Share See More Videos > See More Videos > Finally, I can say confidently, the list does not even remotely cover all the companies that feel this way. The CEO of Dow corralled fellow CEOs over just a couple of days to get these signatories. Many more agree but couldn’t move that fast on the letter, and many other executives have made their feelings known through back channels to Trump and his team. Public statements of support for the Paris agreement have even come in from the CEO of Exxon. Yes, Exxon. And just look at the hundreds of companies that have already committed to science-based carbon reduction goals and 100% renewable energy. And yet the president seems to be ignoring this clear message coming from our titans of industry. He has claimed for a long time that he wants to put America first. But by withdrawing we would join a short list of UN member states that have not signed the agreement: Nicaragua and Syria. That’s it. The U.S. cannot lead the world in any dimension if it abdicates responsibility and leadership for the greatest challenge facing humanity.
http://www.weforum.org/ Africa is facing food shortages arising from droughts in Southern and Eastern Africa, locally produced food competing with cheap food imports in urban supermarkets, and the average farmer is 65 years old. How can African economies move beyond subsistence rain-dependent agriculture to accelerate food production that meets growing demand both at home and abroad? Dimensions to be addressed: - Integrating local farmers into local supply chains - Engaging youth in agro-entrepreneurship - Boosting local manufacturing to compete with global brands - William Asiko, Executive Director, Grow Africa, South Africa - Mamadou Biteye, Managing Director, Africa Regional Office, Rockefeller Foundation, Kenya - Mauricio Muller Adade, President, Latin America, Royal DSM, Brazil - Benedicte Mundele Kuvuna, Co-Founder, Surprise Tropicale, Italy; Global Shaper - Birju Pradipkumar Patel, Deputy Chief Executive Officer, Export Trading Group (ETG), South Africa Moderated by - Monica Katebe Musonda, Founder and Chief Executive Officer, Java Foods, Zambia; Young Global Leader
http://www.weforum.org/ How can a new mix between hydrocarbons and renewables underpin regional development? Dimensions to be addressed: - Technologies to manage growing energy demand and climate change - Impact on fiscal revenue and competitiveness - Policies to fast-track implementation and foster regional integration · Juan Jose Aranguren, Minister of Energy and Mining of Argentina · Alejandro P. Bulgheroni, Chairman, Bridas Corporation, Argentina · Luca D'Agnese, Head, Latin America Region, Enel, Italy · Mauricio Muller Adade, President, Human Nutrition & Health (HNH), DSM Nutrition, Royal DSM, Brazil Moderated by · Caroline Stauffer, Southern Latin America Bureau Chief, Thomson Reuters, Argentina