Our current consumption patterns are stretched to breaking point. Few would argue the need to fix our systems. It’s how to manage an economically viable and just transition that is making heads ache.

1. THE
BIG
SHIFTGETTINGTOGRIPS
WITH SYSTEMSCHANGE
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2. DIRECTIONS_SALTERBAXTER EDITION 17
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INTRODUCTION
Our current consumption patterns are stretched to
breaking point. Few would argue the need to fix our
systems. It’s how to manage an economically viable
and just transition that is making heads ache.
Some companies and organisations are leading the way and asking the
bigger questions of themselves.Not just how do we address some of the big
sustainability challenges – but how do we find ways to unlock the problems
in the system and also hunt out economic opportunity.
The UN SDGs are no panacea,but they have at least provided a framework
for enquiry for many companies and organisations – public,private,big,small,
incumbent and disruptive to get to grips with some of the challenges.It’s worth
flagging that some companies are practicing a sort of SDG-washing that risks
undermining the whole framework and the many more serious actors.How many
companies out there flag their allegiance to the SDGs with a few words in their
sustainability reports and yet deliver very little of substance?And how many have
really looked at the implications of SDG 12 (Ensure sustainable consumption and
production patterns) and the targets and details behind it that point clearly to a
broken consumption system that requires complete re-invention,not a
commitment to do slightly less harm?
That’s why the report this year from the World Resources Institute is so welcome.
Titled‘The Elephant in the Boardroom’,it bursts some dangerous bubbles and
gives the debate a much-needed reality check.We feature this report on pages
20 and 21.The main thesis is that with 3 billion people entering the global middle
class in the next two decades,business has to adjust trajectory,as simply selling
more stuff to people is just not possible given the current resource constraints
– so tomorrow’s markets need some fundamentals to be re-set for economic
growth to be achievable.The report provides powerful insights into how
consumption is changing in the 21st century,what the implications are and what
some of the solutions might involve.
Ahead of this though,we also feature a few of the companies and voices trying
to think the bigger thoughts in sustainability.Those that know that it’s not enough
to just sign up to the movement and grab some SDG badges.To really get to grips
with the challenges of sustainable economic growth,we need to fundamentally
shift the systems we have built over the last 50 years to become fit for the next
50 years of human and economic development.
It’s not easy of course – but the following pages give us some insights into what
the path ahead will look like.
Salterbaxter
DIRECTIONS_SALTERBAXTERDIRECTIONS_SALTERBAXTER
CONTENTS
01
Introduction
02
Consumption Systems in Need of a Rethink
04
Navigating Disruption Within Changing Systems
WE MEAN BUSINESS
06
Courage
Campbell Soup Company
08
Consumers as Agents of Change
World Resources Institute
10
A New Strategy for Coca-Cola in Europe
The Coca-Cola Company and Coca-Cola
European Partners
14
Transforming the Global Food System
World Economic Forum
16
DisruptionThrough Digital Innovation
SAP
20
The Elephant in the Boardroom
World Resources Institute

3. DIRECTIONS_SALTERBAXTER EDITION 17
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FOOD&BEVERA
GE
CELLULAR AGRICULTURE
COULD ULTIMATELY REPLACE
TRADITIONAL ANIMAL
AGRICULTURE
9BN
PEOPLEIN2050
14% of emissions from
agriculture in 2050
could be avoided by
minimising food waste2
Limiting excessive calorie
intake and increasing
consumption of fruits and
vegetables could save $735
billion in health related costs1
Insects emit less GHGS and
have a feed conversion rate
12 times higher than beef7
Increasing by 30% a year, the
global vertical farming market
will reach $6.3 billion by 20226
Agriculture is estimated
to be the dominant driver
of 80% of the world’s
deforestation1
Sewbot, software
automation’s clothes-
making robot, will be
capable of making
Number of clothes
consumers have
purchased each year
has increased by 60%
between 2000 to 2004
Producing
cotton for a
single shirt
can use
GHG emissions
from transportation
account for 20%
of the global total1
Self-driving vehicles might give
rise to an urban environment in
which everyone can travel with
a fraction of the cars
in use today4
Carlo Ratti, Director, MIT Senseable City Lab
Andrew Bolton, Curator Of The Metropolitan
Museum Of Art’s Costume Institute
‘3DPRINTINGCANBEAS
REVOLUTIONARYASTHESEWING
MACHINE...THERE’SNOWASTE’3
Andrew Bolton, Curator Of The Metropolitan
Museum Of Art’s Costume Institute
Paris is one of the global
cities banning diesel and
petrol cars by 20305
A BROKEN SYSTEM
$1TRILLIONroad air pollution and
associated health costs1
OECD COUNTRIES, 2010
APPAREL
FOO
D&BEVERAGE
20%
AUTOMOTIVES
litres of water1
and clothes are
kept half as long1
T-shirts
a year8
CONSUMPTION
SYSTEMSINNEED
OFARETHINKThe population is set to rise to 9.7 billion
by 2050. The food we eat, the cars we
drive and the clothes we wear are
already having a huge impact on the
planet. Current consumption patterns
are putting global systems on an
impossible trajectory.
Here’s a few ‘highlights’:
References:
1. The Elephant in the Boardroom:why unchecked consumption is not an option in
tomorrow’s markets.Report authored by Samantha Putt Del Pino,Eliot Metzger,
Deborah Drew and Kevin Moss,March 2017.(World Resources Institute).
2. Food Surplus and Its Climate Burdens,Environmental Science Technology,American
Chemical Society,April 2016.
3. JamesTarmy,The Future of Fashion is 3D Printing,Bloomberg Pursuits,April 2016.
www.bloomberg.com/news/articles/2016-04-15/3d-printing-is-poised-to-bring-
haute-couture-into-the-home
4. Ruby Lott-Lavigna,From driverless cars to space tourism:what’s the future of
transport?,Wired,January 2017.www.wired.co.uk/article/big-question-future-of-
transport
5. Brain Love,Paris plans to banish all but electric cars by 2030,Reuters,October 2017.
www.reuters.com/article/us-france-paris-autos/paris-plans-to-banish-all-but-
electric-cars-by-2030-idUSKBN1CH0SI
6. Vertical farming market growth,Garden Culture Magazine,May 2016.
gardenculturemagazine.com/techno-gardens/vertical-gardening/vertical-farming-
market-growth
7. Edible insects:Future prospects for food and feed security,
FOA Forestry Paper 171,2013.
8. Adel Peters,ThisT-Shirt Sewing Robot Could Radically Shift
The Apparel Industry,Fast Company,August 2017.www.fastcompany.com/40454692/
this-t-shirt-sewing-robot-could-radically-shift-the-apparel-industry
3

4. DIRECTIONS_SALTERBAXTER EDITION 17
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These decisions come amid a shifting political backdrop,
where the country’s recent election could result in
roadblocks to new oil exploration in the region.
The company itself is quick to point out that demand for
oil and gas will remain a key part of the energy mix for
a long time to come.But in an industry where there has
been a distinct lack of leadership,the company’s
willingness to lay out a pathway that reflects the
demands of the Paris Agreement counts as progress.
Taking decisive action is vital for companies like Statoil
if they are to maximise the business opportunities,
minimise the risks such as stranded assets and
effectively plan to transition workers away from
polluting sectors in a just and fair way.
IT’SVITALFORCOMPANIESTOACTIVELY
ENGAGEINTHECOMINGDISRUPTION,
TOENSURETHETRANSITIONHAPPENS
INAJUSTANDSUSTAINABLEWAY
Statoil is not alone in facing the complex
challenge of managing a hydrocarbon
portfolio while aiming to decarbonise.
French counterpart Total is targeting 20%
of its energy output to be renewable by 2035
and has invested in renewable firm Eren.
While Shell is taking a more cautious approach
and investing only a fraction of its annual
expenditure in low-carbon technologies.
Treating the low-carbon transition with caution
is understandable,but underestimating the
rate of change carries its own pitfalls.Not
only are there risks to the company in the
form of bad investments and lost ground to
competitors,but a lack of effective planning
can have detrimental impacts on a huge
range of outside stakeholders.
Forward-looking companies are
acknowledging that disruption is not limited
to their own businesses,they recognise
ramifications through entire value chains,
communities and even countries.
This can clearly be seen in the race to
electrification by the world’s biggest
automakers,where the accelerating
transition risks unintended consequences
if not managed carefully.
The rapid rate of change was recently
underlined by Volvo’s plans to shift its entire
fleet to hybrid or fully electric engines by
2019.This came as many of the major
automakers are announcing plans to gear up
their EV offerings in response to a tightening
regulatory outlook in countries such as
France,Norway,The UK,India and elsewhere.
Most recently,General Motors announced
plans to have 20 new electric models by
2023,highlighting its growing commitment
to the all-electric auto industry and the
eventual death of the internal combustion
engine.And Ford is diverting more
investment away from its traditional models.
This rapid electrification represents a
seismic shift not only for those companies,
but for a whole host of related industries
including component manufacturers,
commodity producers,electric utilities
as well as the production workforce.
Some of these impacts may well have
positive effects,such as copper miners
seeing increased demand,while some
may be potentially negative,such as
unemployment at vehicle manufacturing
plants due to the reduced number of
components used in EVs.
Managing the transition to a low-carbon economy is
the defining challenge for many companies over the next
decade.How they react to the disruption it brings will
have ramifications far beyond their own boardrooms.
Faced with rapid change it can be tempting to withdraw
to business as usual,plot a steady course and hope for
the best.However,engaging headlong in the global effort
to decarbonise will provide companies with an effective
compass to navigate the uncertainties ahead.
The oil and gas sector is facing huge disruption in the
race to decarbonise,as a result of the accelerating rollout
of both renewable power and electric vehicles (EVs)
globally.The challenges of finding a viable pathway,or
multiple pathways,for such carbon intensive companies
are not to be underestimated.But adopting a spirit of
collaboration,where we recognise the inherent strengths
of these companies as well as the roadblocks they face,
is proving to be far more constructive than casting
blame from the outside.
Statoil is one of the few oil majors that is trying to plot an
effective course to decarbonisation.The company,which
is majority owned by the Norwegian government,recently
announced plans to invest 15-20% of its capital into
renewables and low-carbon technologies by 2030.This
includes developing floating wind farms,which plays
to the company’s strengths of delivering precision
engineering in difficult geographies.
WHYTHELEADINGCOMPANIESOFTHEFUTUREWILLHAVE
SUCCESSFULLYEMBRACEDUNCERTAINTY
WE MEAN BUSINESS is a global non-profit coalition working with
the world’s most influential businesses to accelerate the transition to
a low-carbon economy. Its CEO Nigel Topping shares his perspective
on how businesses are responding and the disruptive forces at play.
Nigel Topping
CEO, WE MEAN BUSINESS
The impact on oil demand from a rapid rollout
of EVs is only starting to be fully understood,
thanks partly to long-standing conservative
forecasts from the likes of the International
Energy Agency (IEA) downplaying the
likelihood of exponential growth in EV stocks.
Bloomberg New Energy Finance now
forecasts more than half of new cars sold
globally will be plug-in by 2040,as battery
prices rapidly decline,improving range
and reliability.This could displace around
eight million barrels of oil a day.
With China now looking to follow India by
proposing an all-out ban on the production
of non-electric vehicles in the coming
decades,the era of endlessly rising oil
demand appears to be nearing an end
sooner than many thought.
THEOILANDGASSECTORIS
FACINGHUGEDISRUPTIONIN
THERACETODECARBONISE,
ASARESULTOFTHE
ACCELERATINGROLLOUTOF
BOTHRENEWABLEPOWER
ANDELECTRICVEHICLES
This has been backed up by the IEA’s ramped
up forecasts for the rollout of renewable
capacity.The agency now forecasts global
renewables to expand by over 920 GW by
2022,an increase of 43%,thanks largely to
increased solar projections in China and India.
Underestimating this force for change
could lead to oil majors being unprepared,
potentially risking the economic growth
of countries reliant on oil revenues and the
livelihoods of workers relying on the
industry for jobs.
This is why it’s vital for companies to
actively engage in the coming disruption to
ensure the transition happens in a just and
sustainable way.It requires a systems-wide
approach,which fully integrates internal
and external factors,and encourages
collaboration between companies,sectors,
trade unions and governments.
NAVIGATINGDISRUPTION
WITHINCHANGINGSYSTEMS

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COURAGETHEKEYINGREDIENTNEEDEDTO
TRANSFORMTHEFOODSYSTEM
Campbell Soup Company is
widely regarded as a leader in
sustainable development within
the food industry. We caught up
with Chief Sustainability Officer,
Dave Stangis, to understand how
systems-thinking is applied to
their sustainability approach.
Dave Stangis
VP Corporate Responsibility and Chief Sustainability Officer, Campbell Soup Company
Helen Ireland
Senior Consultant, Salterbaxter
Salterbaxter:
You recently published‘21st Century Corporate
Citizenship’in partnership with Katherine Valvoda
Smith,Executive Director of the Centre for Corporate
Citizenship at Boston College.The book responds to a
knowledge and skills gap within corporate citizenship.
Is this gap manifest in business right now?
Dave Stangis:
The 21st century marketplace will reward companies
that optimise both business and societal value.We wrote
the book to help practitioners drive change within their
enterprise.We want them to be able to use all of the
levers that are available to them in this role as many
of them don’t know where the hidden sources of power
or weaknesses are in companies.When we’re talking to
people they view this challenge as much more difficult
than it really is.
SB
So,in essence,you want to help others create
winning corporate citizenship strategies.If this is the
outcome,can you comment on the position that there is
a fundamental tension between business strategy and
corporate citizenship strategy – each attributed with
very different time horizons and strategy cycles.Is this
tension having an impact on transforming systems?
DS I think the biggest challenge is the inherent
behaviours and incentives within the systems – such as
the short-sighted business cycles.They weren’t designed
to be in conflict with sustainable food systems,but now
they are.That’s where the big barriers blocking system
changes are.
What does it mean to have foresight and vision and
scenario planning that is 10 years out?What will the
retail/E-commerce environment look like?What will the
food system look like?What tools will we have available
that we don’t have today and how do we plan for that?
For instance,it takes three years to move from a
conventional crop to an organic crop and you can’t sell
any products during that period.These are the things that
make it difficult to undo and to disrupt the system.
We are thinking about the cycle within the year,and within
the decade taking into account weather conditions,and
water availability.We are trying to find ways to make this
as transparent and as realistic as possible in order to
make great food accessible to everyone.
SB Does system transformation require companies to
challenge the entire framework for modern business?
What’s most important to drive change?
DS I think new companies have a tremendous advantage.
They can start in this space,knowing the challenges and
they aren’t breaking down old systems and old incentives.
For existing companies – the big challenge is the courage
to embrace the unknown.I’m somewhat interested in
what we know,but I’m much more interested in what we
don’t know because that is what I need to understand.
You need to dig in deep into some of the things that you
might not be so comfortable with being 100% transparent
about,and then focus your work there.That takes
courage.Some companies don’t like to declare visions of
their future however I’d argue that they need to summon
the courage in order to have the breakthrough ideas
which will help them work out what they want to be in
the future.
SB You mention courage is important.Increasingly
businesses are collaborating with partners and
competitors unthinkable 20 years ago.What role do
partnerships play within Campbell’s and how are they
creating value in the food system?
DS We are in partnerships with our peers across the food
industry.We are working with General Mills,Kellogg’s,
Mondelez and Unilever across sustainable agriculture
initiatives,healthy soil mapping,waste and measuring
the food system’s impact.Up until a few years ago,the
‘how’didn’t really matter.Who shared what?Who did
what?But today that‘how’is a little competitive.The
‘how we do’things is turning into a currency with
consumers.However,there are things that we do learn
and share as we all see that the faster we can transfer
the learning,the better it is for all of us.
SB That’s partnerships,but what about what we might
call structural innovation in thefoodindustry.What’s
bettertoaccelerate change:Campbell’s making greater
investments in its own R&D,or acquiring challenger
food brands?
DS Consumers are seeking out challenger brands.They
want mission driven brands which offer organic,clean
label real food.In 2016 Campbell’s launched a Venture
Capital fund.Acre Venture Partners operates completely
independently and is looking at investments at the
intersection of health,sustainability and agriculture,
because we need these capabilities.Not just Campbell
but the food sector in general has to take on every tool –
from pure plate sustainability to new product
introductions.We are trying to accelerate innovation
everywhere that we can find it.There’s work to be done
internally as well – through our R&D,prototyping,
packaging,recipe design and the development and trial
run.It is more efficient and a way to fail and learn.Not
only do we have to predict and describe the future,we
have to be comfortable setting internal and even external
breakthrough targets to get to where we want to be.We
also need to be willing to adapt the internal systems that
have worked well for the last 100 years if we want to
survive and if we want to succeed long-term.
SB Often challenger brands do well because they offer
a compelling choice for consumers.What would you say
to critics who believe limiting choice is a requirement in
order to shift to a completely sustainable food system?
DS It’s a conversation we have had internally over the
last couple of years.For the last five years we’ve been
reducing the number of products that have negatively
associated ingredients in them whilst significantly
increasing those which are viewed more positively.I think
there are many examples where we (the industry) have
tried to change consumer behaviour too quickly,for
example trying to reduce sodium and sugar too fast.We
can produce the healthiest product in the market but if
the consumer doesn’t buy or eat it then it won’t have any
impact! Food companies are probably a little at fault for
getting there in the first place,but when we try to reverse
that trend sometimes we can reverse it so quickly that the
consumer just opts out.
SB Within this context,consumer choice is largely
influenced by policy.Is there any benefit in being ahead
of policy makers?
DS Over the last couple of years Campbell’s has been
more overt in the policy arena.Being the first company
to declare and support mandatory labelling of GMOs
was rightly seen as leadership,as was advocating to
stay in The Paris Agreement.InJuly,we disclosed that we
would be leaving the Grocery Manufacturers Association.
At the time these decisions felt like huge risks.They
sound scary.They take courage.But in this environment
they are differentiating and demonstrate credibility.
SB Lastly,how does the food system and the key
players within it need to adapt?
DS The future of the food system depends on a different
set of rules than those we relied upon in the past century.
Business success must be coupled with consumer health
and well-being and food system resiliency.This means
that new partnerships will emerge,agriculture will evolve to
new formats (urban,covered and regenerative) and systems
design will incorporate soil health and minimise food waste.

6. SHIFT
WHEEL
Replicate the
experience
Disguise the
change
Form habits in
new markets
Meet current
key needs
Deliver new
compelling
benefit
Enhance
affordability
Enhance
display
Constrain
display
Be more
memorable
Make socially
unacceptable
Make socially
desirable
Inform about
the issue
EVOLVESOCI
ALNORMS MINIMISEDIS
RUPTION
MAXIMISEA
WARENESS
SELLACOMPELL
INGBENEFIT
DIRECTIONS_SALTERBAXTER EDITION 17
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A sustainable food system is one that provides healthy
food to all people in a way that respects planetary
boundaries and ensures that workers in the value chain
are treated well and earn a decent income.Today we are
far from this vision,but that doesn’t mean we can’t get
there.At the WRI we’ve learnt that shifting from meat-
based to plant-based diets is a key step in reducing the
environmental impact of agriculture.Reducing food loss
and waste is another critical step.Navigating vested
interests is part and parcel of transformational efforts.
It’s not a unique or insurmountable barrier to change,
it just requires a smart strategy.I am a firm believer in
Buckminster-Fuller mantra‘You never change things by
fighting the existing reality.To change something,build
a new model that makes the existing model obsolete.’
So,how can we shift consumer behaviour to positively
affect the food system?We know that shopping for food
at the supermarket or ordering from a favourite
restaurant involve habitual and sub-conscious decision-
making processes.People tend to rely on routine and
rarely do they notice new information and remember it,
let alone act on it.When it comes to shopping,many
people make buying decisions on auto-pilot.So,it’s no
surprise that past government and NGO efforts to
encourage more plant-based diets,which have largely
centred around information campaigns,haven’t moved
many people to change their diets.I believe a broader set
of strategies that target how customers actually make
purchasing decisions will be much more effective.
We’ve investigated more than a dozen historical examples
where consumers had shifted en masse towards more
sustainable products.Learning from these examples,
we identified effective strategies and developed a new
framework called the‘Shift Wheel’.The Shift Wheel is
comprised of four complementary strategies:
1
Minimize Disruption.
Changing consumption behaviour typically involves
changing ingrained habits.Making differences between
one product and another less obvious ­by mimicking traits
like taste,look,texture,smell,packaging and the product’s
location within a store can help facilitate change.For
example,makers of milk alternatives such as soy,almond
and coconut milks have launched packaging that looks
similar to dairy milk,and have placed their products
alongside it in supermarkets.
2
Sell a Compelling Benefit.
Most consumers are interested in the environment,but
only a minority are concerned enough for it to influence
what they buy.Delivering on attributes that are the most
important to consumers (such as taste or affordability)
or finding new ones is important.For example,Birds Eye
repositioned its Pollock fish sticks as healthier Omega 3
Fish Fingers rather than as a sustainable alternative to
Cod,which is overfished.In doing so,it shifted a large
proportion of their consumers to the more environmentally
friendly alternative.
3
Maximise Awareness.
The more consumers see or think of a product,the greater
the chance they will consider purchasing it.Enhancing the
availability and display of the more sustainable food
choice,and creating memorable advertising campaigns,
can increase a product’s chance of being bought.
CONSUMERS
ASAGENTS
OFCHANGE
HOWSHIFTINGCONSUMERBEHAVIOUR
WILLINFLUENCESYSTEMICCHANGE
The World Resources Institute is a
leading global research organisation
turning big ideas into action to
sustain the world’s natural resources.
Daniel Vennard is the Director of the
Better Buying Lab, which brings
together the best minds in consumer
research, marketing strategy and
behaviour change to research, test
and scale new strategies that change
consumption behaviour. We pressed
Daniel on the influence consumers
have to drive system transformation
in the food industry.
Daniel Vennard
Director, Better Buying Lab, World Resources Institute
4
Evolve Social Norms.
What people buy is influenced by their cultural and social
environments.Adapting social norms to make a preferred
food more desirable than the less sustainable alternative
can be influential.For example,to reduce the consumption
of endangered sharks in China,WildAid ran a series of
advertisements with high-profile celebrities – those that
set social norms – declaring their opposition to shark fin
soup.In addition,China’s State Council,which also sets
norms in its own way,banned shark at official receptions.
The results have been clear;the Chinese Ministry of
Commerce reported a 70 percent decline in shark fin
sales during the Spring Festival period of 2012-2013.
In nearly all the case studies reviewed,we found a shift
in consumption involved multiple strategies from the
Shift Wheel.Shifts also typically involved groups across
a range of sectors,including manufacturers,retailers,
NGOs and government agencies working in concert to
drive the change.
Changing the consumption system requires shifting
from what people demand to what is supplied to them.
Focusing purely on consumer behaviour change,without
ensuring production can supply,won’t get us very far.
That’s why it’s essential to collaborate with business to
bring about change at scale.To engage them in producing,
marketing and distributing more sustainable products.

7. DIRECTIONS_SALTERBAXTER EDITION 17
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Salterbaxter
What has driven development of the new strategy?
Joe Franses:
We recognise that our business has to adapt and be
responsive to changing circumstances and expectations,
and more frequently look at what we are doing,our
direction and our priorities.Our new sustainability
strategy,‘This is Forward’sets out what we want to
achieve in terms of sustainability,and is fully aligned with
our ambition to be a total beverage company.Critically,
‘This is Forward’is a sustainability plan for the Coca-Cola
system in Western Europe.It reflects a new level of
alignment and shared vision across bothThe Coca-Cola
Company and its newly established Western European
bottler,Coca-Cola European Partners.Importantly,it
Ulrike Sapiro
Director of Sustainability EMEA, The Coca-Cola Company
Joe Franses
VP Sustainability, Coca-Cola European Partners
ANEWSTRATEGY
FORCOCA-COLA
INEUROPEThe Coca-Cola Company and Coca-Cola European Partners have come
together to launch ‘This is Forward’, a new sustainability action plan for
the Coca-Cola system in Western Europe. We spoke to the two people leading
the plan: Joe Franses, Director of Sustainability at Coca-Cola European
Partners (CCEP), and Ulrike Sapiro, Director of Sustainability EMEA,
The Coca-Cola Company (TCCC) to find out more about it.
means closer operational alignment between our
business and our brands to take action on sustainability.
We knew that our new sustainability strategy needed to be
driven by and based on insight,and it involved a detailed
process of stakeholder engagement including outreach
to NGOs,customers and suppliers.We also spoke to over
1,000 employees and,critically,consulted over 12,000
consumers across six countries in Western Europe.The
findings were interesting – including a clear message from
stakeholders that things need to change in terms of the role
we should be playing with regard to nutrition,diets and
systemic public health issues.More surprising was the
consistency of views from across countries on the critical
role of packaging including the importance of resource
scarcity,resource efficiency,circular economy and recycling.
SB So what are the new elements of the strategy?
JF We have three main action areas – drinks,packaging
and society – focused on the issues that matter most to
our business and our stakeholders.We have a total of
21 commitments,including actions we will take on water,
climate change and our supply chain.It’s a strong plan for
today,but it will certainly have to evolve over the next few
years in line with changing stakeholder expectations.
On packaging it includes commitments to ensure that
‘100% of our packaging is recyclable’,that we are able to
‘collect 100% of our packaging’and that‘at least 50%
of the material we use for our plastic bottles comes from
recycled materials’.
SB Packaging is a really interesting area as it’s so
important to engage consumers,how are you going to
achieve these packaging commitments?
Ulrike Sapiro:
Yes,you’re right,and it’s definitely an important element
of our packaging strategy.We are determined to do more
to use the reach of our brands to inspire everyone to
recycle.Achieving our packaging commitments won’t be
easy.We’ll be working with existing recycling and
packaging recovery systems and we will aim to achieve
our commitments consistently across all our markets.
We’ll also be focusing on innovation and R&D around
packaging and recyclability to deliver new materials and
new methods of delivering our products with less or no
packaging.For example,in Great Britain we are
partnering with the University of Reading to introduce
a new initiative that will allow students and staff to
purchase soft drinks via our Freestyle dispensing
machines in reusable bottles.
The key challenge will be to integrate recycling into
brand-led communications.For example,many of our
500ml PET bottles in Great Britain now include a‘Please
Recycle’message on our bottle caps.In some ways it is
a really simple thing to do,but much harder to achieve
internally.From a consumer perspective it is important
that the first thing a consumer sees when they open
a bottle will be a recycling message.
We’ll also be putting more advertising spend into
consumer communications about recycling and
packaging.You might have seen our recent‘Love Story’
campaign that ran in Great Britain – the first-ever ad
made out of 100-percent recyclable packaging.Two
plastic bottles fall in love as they meet over and over
again,thanks to recycling.It’s all part of our message that
our packaging is valuable and needs to be disposed of
correctly so it can be recycled.We hope to encourage
more people to recycle and highlight how plastic bottles
can be reused to produce more plastic bottles,versus
taking up space in landfills.The ad has run on TV,online
and in cinemas in Great Britain,reaching 35 million
people by the end of 2017.
SB What do you think are the really difficult parts
of your targets to achieve?
US Well,we certainly didn’t want to put a plan in place
that was easy to achieve.We wanted to respond to the
expectations of our stakeholders and also put something
in place that could drive our businesses to think
Laurence Cox
Junior Consultant, Salterbaxter
Nigel Salter
CEO, Salterbaxter

8. DIRECTIONS_SALTERBAXTER EDITION 17
1312
SB One area that was explicit in your old strategy but
less overt now,was the commitment to leadership and
future change.Is there a reason for this change?
JF When CCEP was created,it brought together three
different Coca-Cola bottlers,including Coca-Cola
Enterprises which had a well-established sustainability
strategy.In building‘This is Forward’we’ve taken the best
bits from the sustainability strategies of the three
bottlers and will retain a focus on working to inspire
others to focus on future sustainability innovation.We
have a clear commitment to continue to take a leadership
role on the issues that are most important to our
business in Western Europe.Our stakeholders asked us
to focus on what people really expect,and that’s why
packaging and drinks are a core focus of our new strategy.
It’s important to emphasise that sustainability leadership
requires collaboration and partnerships to help find
solutions to complex problems – that’s what
sustainability is about.Delivering the SDGs,for example,
will require more and bolder collaborations with current
and new partners including NGOs,competitors and peers.
SB So how are your employees getting involved in driving
the strategy and bringing it to life?Are people incentivised
to deliver these targets at senior level and below,or is it
more about engagement and communication?
JF Employees have been highly engaged in the
development of‘This is Forward’and our priority now is to
ensure the plan is integrated into their day-to-day work.
This strategy is not a separate plan but a critical part of
the business strategy and so people will be incentivised
as part of their long-term performance.We are only going
to be successful if all our people understand the
challenges,have an opportunity to discuss them,and are
inspired to deliver innovative solutions in their day-to-day
work.Employee engagement is certainly an important
element of how we’ll make this a success,including
ongoing communications from our leadership.
SB It’s great that you have now launched the strategy,
but what is the end game?What will success look like for
you (other than delivery of specific targets of course)?
JF We want to meet the commitments we have set out,
but in doing so our aim is to create a total beverage
company that is growing in a responsible and sustainable
way.We also know that our actions can also benefit the
wider system – whether in terms of carbon,healthy
choices or packaging recycling and collection rates
across our territories.We know we can’t achieve anything
on our own and are excited about working collaboratively
with suppliers,industry associations and others to help
drive innovative solutions to the many challenges that we
collectively face.
differently,provide new and innovative solutions and
engage our stakeholders,including consumers,in new
ways.Some of our sustainability commitments will be
very difficult to achieve and will not only require
investment and a change in our current business model
but importantly collaboration with a wide range of
partners.For example,we’ll only be able to collect 100%
of our packaging in Western Europe by working even more
closely with local and national recycling and collection
partners.Increasing the amount of recycled material we
use in our PETbottles will also depend upon new
partnerships,systems and processes.Our commitment
to reduce greenhouse gas emissions by 35% across our
entire value chain has been approved as being science-
based,but will require strong long-term partnerships
with first,second and third tier suppliers,as the majority
of our carbon impacts sit beyond our direct control.
SB Would you agree that you’re pushing the wider
system in some places but perhaps not in others?
JF Good question,we recognise that we can’t just look at
our own internal operations without thinking about some
of the wider systemic challenges that the world faces –
we need to think about both at the same time.We’ve gone
as far as we could on some topics and recognise that we
have further to go,with much more to do on other topics.
Working together across each of our organisations we
are able to engage our senior leadership teams on key
sustainability topics and push and pull certain levers to
try and create a more holistic response.There’s always
a tension between setting system level commitments
versus more focus on internal improvements.
SB As we know,influencing consumption patterns is
going to be key to dealing with a number of complex
sustainability challenges.How do you think the new
strategy will do this?Mars have gone as far as
communicating that people need to consume less,
will you do this?
US We are committed to encouraging responsible
and mindful consumption,and recognise our role
in making it easier for consumers to make
healthier choices by enabling them to be more
informed about the products they are choosing
and have more packaging and portion options.
We are increasing the number of low/no calorie
drinks,making products in smaller pack sizes and
increasing the percentage of marketing spend which
is focused on low and no-calorie products.We recognise
that too much sugar is not good for anyone and we
fully support the WHO (World Health Organisation)
guidelines on sugar consumption.
We are also working alongside other stakeholders to
promote healthier diets and encourage balanced
lifestyles,to tackle issues related to obesity and other
non-communicable diseases.For example,TCCC has
partnered with six major food companies,including
Mars,to develop a colour-coded nutrition label on all
our packages in the EU,to give more information about
the nutrition in each food or beverage individuals or
families choose.This is all helping towards our
commitment that 50% of our sales will come from
low or no-calorie drinks by 2025.

9. DIRECTIONS_SALTERBAXTER EDITION 17
14
Influencing a system,particularly a complex one like food,
needs to be based on some theory of change.Such
change,however,should not be moored exclusively to
statistical predictions about the future production and
consumption of food.There is no doubt that most people
appreciate the fact that it will be a major technical
challenge to nutritiously and sustainably feed a global
population of 8.5 billion people by 2030.The inference
can be made that there is likely to be a known,or
implementable,solution to such a technical challenge
is correct.But systemic change is more often an adaptive
challenge rather than a technical one.
I would proffer that an adaptive challenge is one that
emerges when changes in societies,markets,customers,
competition,and technology around the globe are forcing
organisations to clarify their values,develop new
strategies,and learn new ways of operating,and that often
the toughest task for leaders in effecting change is
mobilising people throughout the organisation to do
adaptive work (Heifitz & Laurie,Harvard Business Review,
1997).The complexity of the food system,coupled with its
tight links to other systems such as healthcare,makes for
a number of adaptive challenges.For example there are
nearly 800 million people who are malnourished while over
TRANSFORMING
THEGLOBALFOODSYSTEMThe World Economic Forum is committed to improving the state
of the world. Recognised as the foremost International Organisation
for Public-Private Cooperation, it is focusing society’s business and
political leaders to positively transform global systems through its
range of initiatives, including ‘The System Initiative on Shaping
the Future of Food Security and Agriculture’. Head of Global
Programming and Member of the Managing Board, Lee Howell
believes a theory of change is needed.
Lee Howell
Head of Global Programming, Member of Managing Board, World Economic Forum
one billion people are overweight or obese.How do we
solve for both with the added requirement of doing so
sustainably?This is one of the many adaptive challenges
that surface from the 2030 Agenda for Sustainable
Development which was endorsed by 193 world leaders
in 2015.The United Nations framed that agenda around
seventeen Sustainable Development Goals (SDGs).
The second SDG is zero hunger and the third is good
health and well-being.In principle it makes sense to
address the two holistically.But in practice,it is beyond
the remit and competency of any single institution,public
or private,which is why the 17th and final SDG is
partnerships for the goals.It is also core to the mission of
the World Economic Forum given our status as the
international organisation for public-private cooperation.
Partnership also shapes our view that the world is an
interconnected ecosystem and as such there are always
unintended effects and unseen interdependencies to
consider when addressing a topic such as food.More
importantly,partnership means we actively invite
perspectives from all interested parties based on the
premise that the world’s challenges can only be solved
through trust and engagement with all members of
global society.
The World Economic Forum’s New Vision for Agriculture
Initiative is a recent example of how we put partnership
principles into practice in 21 countries,in Africa,Asia
and Latin America.Of the over 800 million people that
are chronically hungry and malnourished,many of them
are small land-holding farmers.Sustainably increasing
agriculture production in the most vulnerable
communities required working with small land-holding
farmers to rethink and redesign the existing value chain
with all stakeholders.A new narrative (vision) could then
be developed that recognised small-scale agriculture as
a driver of food security,environmental sustainability
and economic opportunity.
The Forum acted as a trusted platform to catalyse over
90 value-chain partnerships that have helped nearly
11 million farmers to date.These efforts have mobilised
USD 10.5 billion in investment commitments of which
USD 2.5 billion have been implemented.
PARTNERSHIPMEANSWEACTIVELY
INVITEPERSPECTIVESFROMALL
INTERESTEDPARTIESBASEDONTHE
PREMISETHATTHEWORLD’S
CHALLENGESCANONLYBESOLVED
THROUGHTRUSTANDENGAGEMENT
WITHALLMEMBERSOFGLOBALSOCIETY
If similar partnerships are to be applied towards
transforming other parts of the food system,then it is
worth reflecting on the following questions in advance
of such an effort:
1
How well have you defined and understood the systemic
nature of the problem,particularly its impact on value
chains and business models?
2
Have you identified and engaged all of the
relevant stakeholders?
3
What is the shared interest,purpose or action that
the stakeholders are aligned with?
Discovering the answers to these questions is at the core
of building partnerships and is embedded in the culture
of the World Economic Forum.
15

10. DIRECTIONS_SALTERBAXTER EDITION 17
1716
DISRUPTION
THROUGH
DIGITAL
INNOVATIONSYSTEMICCHANGEPOWEREDBYCLEARPURPOSE
For 45 years SAP has been at the forefront of
the digital revolution fuelled by a pioneering
spirit. Cloud computing, big data, the Internet
of Things, machine learning and artificial
intelligence are all enabled by SAP HANA
architecture. Will Ritzrau, Director of
Sustainability at SAP explains how they
are already powering the systemic
transformation the world needs by putting
purpose at the heart of their R&D pipeline.
Will Ritzrau
Director of Sustainability, SAP
SAP’s vision is to help the world run better and improve
people’s lives.In service to this enduring purpose,we have
committed our people and our products to address the
world’s biggest economic,environmental,and societal
issues and contribute to the United Nations Sustainable
Development Goals (SDGs).The digital revolution has
given people more choices – who they buy from,who they
work for,and who they invest in.They want to work with
companies dedicated not only to solving business
problems,but which have a social conscience as well.
SAP’s strategy brings together talent and technology to
address global challenges – which benefits business,
customers,employees – and the world.SAP is embedded
in the foundation of the global economy,society and
environment serving over 355,000 customers in 180+
countries;76% of the world’s transaction revenue touch
an SAP system;our customers produce 78% of the
world’s food and represent 58% of the UN member
governments.It’s statistics like these that underscore
why SAP is uniquely qualified – and we see it as our
responsibility – to help tackle the world’s biggest
challenges head-on.
SAPISUNIQUELYQUALIFIED–AND
WESEEITASOURRESPONSIBILITY–
TOHELPTACKLETHEWORLD’S
BIGGESTCHALLENGESHEAD-ON
SAP endeavours to deliver continuous innovation to help
organisations run at their best by supporting them to
transform and accelerate the global economic,social
and environmental impact they have in areas such as
chronic disease prevention,humanitarian relief and
post-harvest loss.In the agricultural sector Stara tractors
have connected people-to-machines-to-plants in order
to increase productivity and sustainable farming
practices helping farmers to increase their yield per acre
without having to cut down trees,maintaining the balance
between cropland and forest and between progress
towards SDG#2‘Zero hunger’and SDG#15‘Life on Land’.
Although Stara tractors already had sensors,they needed
real-time systems to make use of the data,gain better
insights and make smarter decisions so they partnered
with SAP Labs Latin America to integrate the sensors with
a Digital Farming platform powered by SAP HANA.

11. DIRECTIONS_SALTERBAXTER EDITION 17
1918
Our products and influence are also having a disruptive
positive effect on the healthcare sector and on SDG#3
‘Good Health and Well-being’.The world’s population is
projected to grow to nearly 10 billion people by 2050,
according to United Nations estimates.With many people
enjoying longer lives,the healthcare industry will be
required to adapt and grow.Digital disruption is the key
to enable a more effective,cost efficient future for the
healthcare industry and its patients,and SAP is leading
the charge.For exampleThe American Society of Clinical
Oncology (ASCO®
) and CancerLinQ™ saw an opportunity
to provide patients with live,personalised care informed
by the data of nearly every patient treated before them.
In order to achieve this goal,they needed a partner
with innovative,technical expertise to complement
their scientific and medical expertise.SAP HANA has
allowed them to collect and process patient data from
around the world,generating medical insights at an
unprecedented scale.
DIGITALDISRUPTIONISTHEKEY
TOENABLEAMOREEFFECTIVE,
COSTEFFICIENTFUTUREFORTHE
HEALTHCAREINDUSTRYANDITS
PATIENTS,ANDSAPISLEADING
THECHARGE
ASCO®
and CancerLinQ™ now harness Big Data to improve
patient treatment and change cancer care including
analysing more than 850,000 health records to find the
best treatment,using 100% of available data (up from
3%),and enabling oncologists to understand and deliver
the best treatment options available to the patient.
At a time when automation and innovation are changing
the way we live and work,SAP is offering technology to
prepare today’s workforce for the opportunities and
challenges of the digital age.Everyone deserves the
chance to be a contributing and productive member of
society.Until recently,organisations have lacked the tools
to address workplace inequality but we are using
SDGs#8‘Decent Work and Economic Growth’and 10
‘Reduced Inequalities’to guide our work.The Business
Beyond Bias functionality within SAP Success Factors
applies machine learning technology to identify and
eliminate (un)conscious bias in the end-to-end employee
lifecycle.Think of it as a spell-check for unconscious bias! * Sources EYWinning with Purpose Report 2016,HBR EY,The Business Case for
Purpose,BrandZReport,2016,Project ROI Report,2015 EY,2015.
We are also addressing large scale societal issues such
as forced labour in global supply chains.SAP Ariba and
Made in a Free World partnered to help procurement
businesses gain deeper insights and transparency from
their suppliers to detect and eradicate forced and child
labour and track raw materials,thereby ensuring
SDG#12‘Responsible Consumption and Production’.
There are currently 26 million consumers registered on
the platform and this collaborative effort to improve
business practices could create economic prosperity for
approximately 30 million people,many of them children.
Companies trust SAP every day to help them serve their
customers to compete and win in the digital economy.
We balance visionary,responsible innovation for early
adopters and thought leaders,and the market’sreadiness
to adopt and scale new innovation.We encourage open
collaboration to generate the best results.We innovate
with purpose partnering with customers,NGOs,and
governments across the global ecosystem – positively
transforming and increasing transparency in supply
chains,workforces and small business growth.We
understand the dependencies between economic,social
and environmental performance.This is why we do what
we do.We embrace collaboration to build our RD
pipeline because:
1
No organisation can go at it alone.
2
It allows us to tap into the global community to deliver
impact far beyond the walls of SAP.Looking ahead,
we continue to strive for improvement on global impact
measurement and are piloting an internal customer
impact index for SAP’s current and future portfolio.
WEBALANCEVISIONARY,
RESPONSIBLEINNOVATIONFOR
EARLYADOPTERSANDTHOUGHT
LEADERS,ANDTHEMARKET’S
READINESSTOADOPTANDSCALE
NEWINNOVATION.WEENCOURAGE
OPENCOLLABORATIONTO
GENERATETHEBESTRESULTS
WORKINGTOWARDSAHIGHER
PURPOSE(ANDHELPINGYOUR
CUSTOMERSDOTHESAME)ISNOT
ANICE-TO-HAVE,IT’SABUSINESS
IMPERATIVE.PURPOSEMATTERSTO
EMPLOYEES,CUSTOMERSAND
SHAREHOLDERSALIKE
Working towards a higher purpose (and helping your
customers do the same) is not a nice-to-have,it’s a
business imperative.Purpose matters to employees,
customers and shareholders alike.Even if a manager is
not naturally inclined to keep purpose at the centre of
their team’s strategy,the facts are irrefutable because
it matters to the bottom line.It’s in a manager’s best
interests to inspire the organisation and work toward a
higher purpose beyond economic success.Companies
that prioritise purpose have increased sales by 20%,
boosted employee engagement,lowered employee
turnover by 50%,and see 6% higher returns on stock
price*.There is always room for improvement,but you will
see examples of SAP leaders at every level improving lives
each day.SAP is in a unique position as a tech company
as it has a 45-year history of business innovation and
transformation.We guide and challenge customers to
transform their businesses and innovate beyond
traditional constraints.Our sustainable business strategy
demonstrates that being purpose-led enables us to be
the world’s most innovative cloud company.All of that
said,we know we can’t do it in isolation so we invite other
tech companies – and all companies for that matter –
to join us in the pursuit to help the world run better and
improve people’s lives.

12. DIRECTIONS_SALTERBAXTER EDITION 17
2120
THEELEPHANTIN
THEBOARDROOM
WHYUNCHECKEDCONSUMPTIONISNOT
ANOPTIONINTOMORROW’SMARKETS
As mentioned in our introduction, we think ‘The Elephant in the Boardroom’ report
from the World Resources Institute has flagged some of the key challenges facing
our stretched consumption system. It’s essential reading. Here are a few extracts...
www.wri.org/publication/elephant-in-the-boardroom
However,underneath this welcome progress
lies an uncomfortable truth:Most businesses’
growth is still predicated on more people buying
more goods.The world will have more than 9
billion people by 2050,and the middle class will
have swelled by 3 billion by 2030.On top of this,
consumer expectations for yet more are being
stoked by trends such as fast fashion.The rapid
expansion of consumption-driven markets in
the coming decades is the anticipated engine
for continued business growth.
The problem is that the planet’s natural
systems and finite resources cannot keep up.
Studies cited in this paper show that we are
already at or close to the limits of the planet’s
ability to provide.A continuation of business as
usual would mean not just a slight additional
strain,but three times as much consumption
of the planet’s already overused resources.
This working paper calls on companies to
do the math by looking openly and honestly at
their dependency on natural resources and
the associated limits on business growth;
take a leadership role by using their influence
to change the conversation with key
stakeholders;and
transform the business to one that will thrive
in a resource-constrained environment.
FURTHERREADING
FAST-MOVINGCONSUMERGOODS–CLOTHES CONSUMABLES–BEEFCONSUMERDURABLES–CARS
• The Elephant in the Boardroom:why unchecked consumption is not an option in tomorrow’s
markets.Report authored by Samantha Putt Del Pino,Eliot Metzger,Deborah Drew and Kevin Moss,
March 2017.
• Sustainable Diets:How Ecological Nutrition Can Transform Consumption and
the Food System by Pamela Mason andTim Lang.
• Homo Deus:A Brief History of Tomorrow by Yuval Noah Harari.
• Mapping Momentum by Rachel Sinha andTim Draimin www.sigeneration.ca/mapping-momentum
• RSA From Design Thinking to Systems Change by Rowan Conway,Jeff Masters and JakeThorold
www.thersa.org/discover/publications-and-articles/reports/from-design-thinking-to-system-change
Intrigued and want to find out more about how we shift our consumption systems?
Here’s a few things we like...
Sources: Based on raw data from OECD; Fischer-Kowalski et al. 2011.
WorldGDP
Business-as-usual:resource
consumptionincreasesby3x
0
1
2
3
4
5
2000 2010 2020 2030 2040 2050
Agressiveresourceefficiency,
butoverallconsumptionstill
increasesby1.4x
Unprecedentedinnovation
requiredtomeetdemandwhile
keepingresourceconsumptionflat
IndexedGrowth(2000=1)
Figure 4 | Priority for 2000–2050: Meet Greater Consumer Demand with Far Less Resources
GHG, Land, and Water Impacts of Protein Sources for Human Consumption
Notes: Data presented are global means. Entries are ordered left to right by amount of total land use. Indicators for animal-based foods include resource use to produce feed, including pasture.
Tons of harvested products were converted to quantities of calories and protein using the global average edible calorie and protein contents of food types as reported in FAOSTAT database. “Fish”
includes all aquatic animal products. Freshwater use for farmed fish products is shown as rainwater and irrigation combined. Land use and greenhouse gas emissions estimates are based on
a marginal analysis (i.e., additional agricultural land use and emissions per additional million calories or ton of protein consumed). Based on the approach taken by the European Union for estimating
emissions from land-use change for biofuels, land-use change impacts are amortized over a period of 20 years and then shown as annual impacts. Land use and greenhouse gas emissions
estimates for beef production are based on dedicated beef production, not beef that is a coproduct of dairy. Dairy figures are lower in GlobAgri than some other models because GlobAgri assumes
that beef produced by dairy systems displaces beef produced by dedicated beef-production systems.
Source: Reproduced from Ranganathan et al. 2016.
PER MILLION KILOCALORIES CONSUMED
Wheat Soybean
Oil
Fruits
Vegetables
Sunflower
SeedOil
Rice Rapeseed
Mustard
SeedOil
Sugar Maize PulsesRoots
Tubers
Fish
(farmed)
EggsPork Poultry Dairy Beef
LAND USE (ha)
Pasture
Cropland
GHG EMISSIONS (t CO2
e)
Land-usechange
Agriculturalproduction
FRESH WATER CONSUMPTION (1,000 m3
)
Rainwater
Irrigation
ANIMAL-BASED
0
3
6
9
12
15
ha 1,000m3 tCO2
e
10 250
8 200
6 150
4 100
2 50
PLANT-BASED
Figure 8 |
Millions of people are hungry,undernourished,
or have poor diets.What people eat,how much
they eat,and how often is a complex interplay
between personal choice,religious faith,cultural
preferences,food availability,and economic status.
There is one absolute requirement of the global
food system,and that is to ensure each and every
person has sufficient nutrition.The modern food
system is incredibly complex,inefficient,and
vulnerable.Food exports globally were valued at
nearly $1.5 trillion in 2014 (WTO 2015).By 2050 a
food gap will exist,meaning there will be a need for
70 percent more food than is available today to
feed the world’s nearly 10 billion people
(Ranganathan et al.2016).
Animal-based proteins have the highest impact on
the environment of any food,and beef is the most
impactful.Consumption of beef is trending upward
in many countries.With the exception of countries
like Brazil and Argentina,the highest per capita
meat consumption occurs in developed countries
(see Figure 7),but it is also growing in emerging
economies (Ranganathan et al.2016).Overall,
worldwide consumption of animal-based foods
(meats and dairy) is expected to increase 79
percent between 2006 and 2050,and beef demand
by 95 percent (Ranganathan et al.2016).
Roughly 100 years ago,with innovations like Henry
Ford’s assembly line,companies started producing
automobiles that were affordable for the average
U.S.household.Demand and consumption
increased rapidly throughout the 20th century as
car ownership transformed personal mobility and
shaped growing American cities.
Today U.S.households far outspend other
countries on transportation (see Figure 5).Much
of this high spending is related to personal
automobile ownership.In car dependent American
communities,transportation costs can amount to
25 percent of a family’s income (USDT2014).
Worldwide,automobile ownership varies widely
across countries.In the United States,there are
more than 80 vehicles for every 100 people.There
are far fewer vehicles per person in emerging
economies – including Brazil (20 per 100);China
(10 per 100);and India (2 per 100;OICA 2017) – but
more people in growing countries will soon reach
the point where they can afford a car.
Countries are already motorizing rapidly.In 2005
there were 900 million vehicles on the road globally.
By 2010 the world had surpassed 1 billion and
reached 1.25 billion in 2015.That represents an
increase of more than 40 percent in the span of
a decade,in part due to rapid growth in China
(+351 percent),India (+171 percent),and Brazil
(+81 percent;OICA 2017).
Average households in the United States spend
roughly six times as much on clothes as those in a
major emerging economy like Brazil (see Figure 11).
Spending around the world is projected to increase,
and the advent of fast fashion means more and
more clothes are being produced per dollar spent.
The number of clothes the average consumer
purchases has increased 60 percent between 2000
and 2014,and the clothes are kept about half as
long (Remy et al.2016).
There is no authoritative estimate of the size of
the global apparel industry.Estimates vary from
$900 billion to $3 trillion,depending in part on
how the industry is defined.What is clear is that
the industry generates huge profits.It is also
responsible for 10 percent of the world’s GHG
emissions (Zaffalon 2010),uses 1.32 trillion gallons
(5 trillion L) of water for dyeing processes a year
(Maxwell et al.2015),and sends an estimated
48 billion to 144 billion square yards (40 billion to
120 billion sq.m) of fabric from factory scraps to
the landfill each year (Reverse Resources 2016).
Notably,the textile and apparel industries directly
employ more than 40 million people worldwide –
mostly women (Kirchain et al.2015) – and the
industry represents a significant percentage of
overall employment in several countries (see Figure
12).These industries can create jobs indirectly,too.
For example,according to some estimates,for
every textile job in India,there are an additional
1.2 jobs in associated industries (Gugnani et al.
2012).However,issues of worker safety and unsafe
working conditions came to the forefront in 2013
when a garment factory in Bangladesh’s Rana
Plaza,largely dedicated to Western brands,
collapsed,killing more than 1,100 workers and
seriously injuring over 2,000 (HRW 2015).
What are the environmental implications if the
industry ignores the environmental and social
cost of today’s business model?Will companies
continue to produce and sell clothes at
ever-increasing rates,or will they embrace new,
better models that benefit both customers and
workers across the value chain?

13. Samuel Griffin-Flynn
Business Development
samuel.griffin-flynn@salterbaxter.com
T:+44 (0)20 7229 5720
DD:+44 (0) 207 313 8682
LONDON
82 Baker Street
London
W1U 6AE
T:+44 (0)20 7229 5720
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1675 Broadway,29th Floor
NewYork,
NY10019
T:+1 646 500 7906
www.salterbaxter.com
@salterbaxterMSL
CONTACTUS
We are the leading international sustainability
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We help companies and brands Step Up to the
challenge of the changing relationship between
business and society.
We combine strategy,insights and creativity to help
business build purpose,deliver performance and
drive transformation.
ABOUTUS How we help our clients:
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