Geneva, Switzerland "“ February 13, 2008 - A wave of corporate announcements of environmental targets swept the world during 2007, says a review of the year published by a corporate responsibility consultancy.

Awareness of climate change drove this agenda, with many companies announcing specific targets as part of their membership of initiatives like The Climate Group, the Carbon Disclosure Project, or the WWF Climate Savers initiative. Reckitt Benckister, Cisco and Proctor and Gamble are praised in the review for adopting broader targets.

"Continuous improvement is no longer enough, with time-bound targets now in vogue for corporate responsibility" says report co-author Jem Bendell, a Director of Lifeworth, which publishes the annual reviews. "Targets express an awareness of the scale and urgency of an issue and a willingness to engage it. Although investing in new management processes are key, making a commitment to a performance target helps add the substance," he added.

This, the seventh annual review, reports on a survey of corporate responsibility professionals which suggests progress is occuring, but not fast enough to meet the international community's goals on either climate change or world poverty. The poll of Lifeworth's 4000 newsletter subscribers found they thought that by about 2028 approximately 57% of global economic activity would be environmentally sustainable. If that rate continues then overall performance would be 78% by 2050. This means the corporate responsibility community, as represented by Lifeworth's subscribers, think current rates of progress would create a sustainable economy by around 2070. The Intergovernmental Panel on Climate Change (IPCC) has stated the world needs to see over 50% reductions by 2050, and the latest science suggests an 80% cut by then to remain under a critical threshold of 2 degrees warming. That would mean at least a 20% reduction in the next 10 years, and given growing emissions from industrialization in the global South, possibly even double that reduction in industrialized countries to offset it. The review argues that a slower rate of change appears to be futile, and so achieving a sustainable economy by 2070 will not actually be possible.

The world community has also made a commitment to eliminate world poverty by 2025. To do so would require economic activity to be socially responsible. Professionals estimate that on current trends only about 50% of economic activity will be socially responsible by then. It will only be about 75% by 2050.

"The message from the Lifeworth Annual Review is that although CSR efforts are delivering some progress, it may not deliver the sustainable global economy in time and we need to explore ways of enabling faster and deeper change," explained Professor Michael Powell, Dean of Griffith Business School, which supports the publication. "A global step change in progress towards a sustainable world economy is required, and this will involve more targets from companies on their social and environmental performance, as well as more collaboration on how to shift entire sectors and market systems so they reward firms in meeting those targets" explained Dr. Bendell.

The implication is "we need to speed up the dissemination of new ideas, make them more readily available and easily accessible" says Professor David Grayson, of Cranfield School of Management. "The Lifeworth Annual Review is one practical way of doing this. I am delighted that the new Doughty Centre for Corporate Responsibility has helped make this happen this year."

The concept of a 'global step change' is proposed by the review, to both describe the leap in progress required and the importance of promoting sustainable consumption. The Review suggests that if everyone lived like Europeans, ecological footprint calculations suggest we would need three planets to support us, and that if everyone lived like the average Asian we would also need more than one planet. Indian middle classes now have a higher per capita consumption of carbon than the average Briton. The review, titled "The Global Step Change," concludes it would be physically impossible for all the world's poor to achieve higher wellbeing in ways as resource-intensive as the new middle classes in Asia and elsewhere. "Humanity's challenge is to find ways to improve human wellbeing within the limits of the Earth's resources; to stop living as if we have another planet to go to" explains Jem Bendell. For this, Professor Grayson adds, "we need a new mindset for Corporate Sustainability to stimulate innovation and create radically new business models."

Professor Powell, said "The review shows that more and more executives are realizing the need to gear up their efforts on sustainable business, and governments also increasingly recognize the need for hard targets. Beating climate change requires a step change in commitment and action. As the first Australian business school to adopt the United Nations Principles for Responsible Management Education, Griffith Business School is committed to educating business professionals to understand the critical nature of this challenge."

The review warns that the adoption of specific targets by companies is only the beginning. "We should remember that targets themselves are not the mechanisms of change. It appears that many countries will miss their Kyoto targets, and the first Millennium Development Goals on primary school education have already been missed" explains Dr Bendell. "The solution may be for wider coalitions of groups to apply themselves to the factors that shape our economy. To explore ways of collaborating to shift whole markets."

To coincide with the publication of the review, Lifeworth is launching an online directory of corporate targets for social and environmental performance: www.responsibleenterprise.com

Lifeworth's predictions for 2008 and beyond:

Lifeworth

Lifeworth

Lifeworth Consulting is a social enterprise that promotes sustainable development through influencing enterprise and investment. We also run Lifeworth.com, the jobs portal for responsible enterprise. Reflecting on our year, in each of our specialist areas during 2010 we sensed people realising the need for far greater change than they currently seek in their own organisations, and some confusion about how to deal with that gap between awareness and action. We've been seeking to help.

We analyse, educate and advise on global changes in business-society relations and how to influence and respond to these changes in helpful ways (Enterprise Trends). Our activities and outputs in 2010 responded to this growing desire for transformation, working with the UN, GTZ as well as CSR networks in Asia to contextualise the key challenges for CSR and responsible investment in the coming years. We also analyse, educate, and advise on the specific practice of cross-sector relations, including partnerships between business and public interest organisations like the UN and NGOs (Engaging Change). We find that the desire to attempt transformational change counters some of the negative effects of growing demands for numerical scores on project effectiveness in challenging funding environment. Social change can be tough, and requires new ways to assess progress, although not ones that see a partnership's existence itself as the goal. We brought that perspective to our work with UN agencies and NGOs during the year, as well as through the teaching of courses and publishing of papers.

Our third work programme is the focus of our corporate strategy advisory work, where we help high-end brands to develop their approach to achieving social and environmental excellence (Authentic Luxury). It is topic we were busy with in 2010, but mostly with research, lectures and media. The companies in this sector are not moving as rapidly as we had imagined they might, given the strong business case for prestige brands to out perform on social and environmental issues. We worked with a couple of companies on their CSR strategies, but are yet to see wider demand for support to develop and execute ambitious and creative approaches.

Thanks for your interest in our work, and I hope you have success in making waves with your own. You can follow me on Twitter @jembendell.

-Jem Bendell, Director, Lifeworth Consulting

Here is that keynote on sustainable wellness:

Integrating Personal & Global Wellness: The Future of Luxury by Dr Jem Bendell from Wellness Summit on Vimeo.

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