WEBVTT 1 00:00:04.060 --> 00:00:05.860 Many companies are racing 2 00:00:05.860 --> 00:00:08.270 to achieve their sustainability targets, 3 00:00:08.270 --> 00:00:11.050 but they're realizing they cannot do it alone. 4 00:00:11.050 --> 00:00:13.200 You will have to work with others, 5 00:00:13.200 --> 00:00:16.360 including competitors, in partnerships. 6 00:00:16.360 --> 00:00:19.610 That's why corporate sustainability alliances 7 00:00:20.610 --> 00:00:24.550 are essential to capitalize the collective action 8 00:00:24.550 --> 00:00:26.830 that we need to foster system change 9 00:00:26.830 --> 00:00:29.200 to achieve the sustainability outcomes. 10 00:00:29.200 --> 00:00:31.493 Now take, as an example, the mining industry. 11 00:00:32.370 --> 00:00:36.940 Over 90% of the carbon emissions of a typical mining company 12 00:00:36.940 --> 00:00:41.410 are scope three, meaning they're occurring downstream, 13 00:00:41.410 --> 00:00:43.483 not in the mining process itself. 14 00:00:44.490 --> 00:00:48.075 So you need to bring together the mining company, 15 00:00:48.075 --> 00:00:53.075 the steel company, the end consumer, the OEM, 16 00:00:53.240 --> 00:00:57.060 providers of new raw materials, such as hydrogen, 17 00:00:57.060 --> 00:01:01.080 technology providers and academia 18 00:01:01.080 --> 00:01:04.470 if you want to decarbonize steel production. 19 00:01:04.470 --> 00:01:07.100 Together with BCG's Bruce Henderson Institute, 20 00:01:07.100 --> 00:01:11.600 we have analyzed 50 sustainability alliances. 21 00:01:11.600 --> 00:01:15.050 A good quarter of them are having a real impact 22 00:01:15.050 --> 00:01:16.770 at root cause level, 23 00:01:16.770 --> 00:01:18.240 but more than a third 24 00:01:18.240 --> 00:01:20.860 are really only mitigating negative consequences, 25 00:01:20.860 --> 00:01:22.750 without a sustained impact. 26 00:01:22.750 --> 00:01:25.870 And of those alliances that do make an impact, 27 00:01:25.870 --> 00:01:29.760 half of them are 15 years old or older. 28 00:01:29.760 --> 00:01:33.180 So clearly we need these sustainability alliances 29 00:01:33.180 --> 00:01:34.950 to perform better faster. 30 00:01:34.950 --> 00:01:39.590 From our work, we have derived a set of golden rules 31 00:01:39.590 --> 00:01:43.720 to help sustainability alliances perform better. 32 00:01:43.720 --> 00:01:45.580 First, who you partner with. 33 00:01:45.580 --> 00:01:48.640 Sustainability alliances that have been founded 34 00:01:48.640 --> 00:01:53.210 by market leaders are more than twice as effective 35 00:01:53.210 --> 00:01:54.690 than others. 36 00:01:54.690 --> 00:01:57.960 Clearly it takes a lot of commitment, resources, 37 00:01:57.960 --> 00:02:02.720 and credibility to create an alliance that makes an impact. 38 00:02:02.720 --> 00:02:05.290 Second, creating data transparency, 39 00:02:05.290 --> 00:02:07.800 not just for its members, but also for consumers 40 00:02:07.800 --> 00:02:10.040 and external stakeholders is important. 41 00:02:10.040 --> 00:02:14.571 Alliances who do that are more than three times as likely 42 00:02:14.571 --> 00:02:16.300 to be effective. 43 00:02:16.300 --> 00:02:21.048 And third, alliances need to have a clear impact strategy. 44 00:02:21.048 --> 00:02:25.020 That is, a defined sense of purpose, 45 00:02:25.020 --> 00:02:27.770 alignment around what matters 46 00:02:27.770 --> 00:02:30.290 and how they will make an impact, 47 00:02:30.290 --> 00:02:34.190 and clear metrics to measure their performance. 48 00:02:34.190 --> 00:02:36.550 In summary, most companies cannot achieve 49 00:02:36.550 --> 00:02:38.600 their sustainability targets alone. 50 00:02:38.600 --> 00:02:40.203 We're all in this together.