WEBVTT 1 00:00:00.291 --> 00:00:02.874 (bright music) 2 00:00:07.220 --> 00:00:10.140 [Narrator] A movement is underway in the private sector. 3 00:00:10.140 --> 00:00:13.330 Businesses are striving to operate more sustainably 4 00:00:13.330 --> 00:00:15.760 by embracing stakeholder capitalism, 5 00:00:15.760 --> 00:00:17.750 boosting their ESG performance, 6 00:00:17.750 --> 00:00:21.280 and delivering on the UN's Sustainable Development Goals. 7 00:00:21.280 --> 00:00:24.440 It is now clear that companies can deliver social impact 8 00:00:24.440 --> 00:00:26.700 in a profitable way. 9 00:00:26.700 --> 00:00:30.230 Profitable social impact is scalable social impact 10 00:00:30.230 --> 00:00:32.510 and scale is what we need to solve 11 00:00:32.510 --> 00:00:34.710 the world's biggest challenges. 12 00:00:34.710 --> 00:00:37.670 At BCG, we are helping businesses launch 13 00:00:37.670 --> 00:00:40.860 the transformations needed to make this happen. 14 00:00:40.860 --> 00:00:43.740 What does it take making sustainability 15 00:00:43.740 --> 00:00:46.840 a source of competitive advantage? 16 00:00:46.840 --> 00:00:49.790 This starts with a sustainability strategy 17 00:00:49.790 --> 00:00:52.260 that aligns with the company's purpose. 18 00:00:52.260 --> 00:00:54.450 To do this, focus on the issues 19 00:00:54.450 --> 00:00:56.620 that matter most to stakeholders, 20 00:00:56.620 --> 00:00:58.860 are authentic for the organization, 21 00:00:58.860 --> 00:01:01.000 and can create value. 22 00:01:01.000 --> 00:01:03.390 Embed social and environmental outcomes 23 00:01:03.390 --> 00:01:05.920 into every aspect of the business. 24 00:01:05.920 --> 00:01:08.470 That means rethinking not just offerings, 25 00:01:08.470 --> 00:01:10.640 operations, and talent management, 26 00:01:10.640 --> 00:01:12.600 but also investment strategies 27 00:01:12.600 --> 00:01:16.060 and participation in business ecosystems. 28 00:01:16.060 --> 00:01:19.600 Set up ways to capture the newly created value, 29 00:01:19.600 --> 00:01:22.520 which can be unlocked via price premiums, 30 00:01:22.520 --> 00:01:25.940 fresh growth, reduced operational costs, 31 00:01:25.940 --> 00:01:30.100 better financing access, and higher valuations. 32 00:01:30.100 --> 00:01:34.070 Finally, activate enablers to lay a foundation 33 00:01:34.070 --> 00:01:36.350 for long-term success. 34 00:01:36.350 --> 00:01:40.160 These include building data capabilities and processes 35 00:01:40.160 --> 00:01:42.460 to measure and report impact, 36 00:01:42.460 --> 00:01:45.760 setting up the right governance and incentive structures, 37 00:01:45.760 --> 00:01:49.053 and engaging proactively with all stakeholders. 38 00:01:51.150 --> 00:01:54.030 What does all this look like in the real world? 39 00:01:54.030 --> 00:01:57.760 line:15% For one thing, pioneers are weaving sustainability 40 00:01:57.760 --> 00:01:59.780 line:15% into their core offerings. 41 00:01:59.780 --> 00:02:01.540 line:15% In the B2B space, 42 00:02:01.540 --> 00:02:03.500 line:15% they're developing products and services 43 00:02:03.500 --> 00:02:07.730 line:15% that support client's own transition towards sustainability. 44 00:02:07.730 --> 00:02:10.300 line:15% In B2C, they're creating offerings 45 00:02:10.300 --> 00:02:14.400 line:15% that enhance customer's wellbeing or financial resilience, 46 00:02:14.400 --> 00:02:17.380 line:15% and that are accessible to all. 47 00:02:17.380 --> 00:02:20.710 line:15% As a result, these companies have boosted loyalty, 48 00:02:20.710 --> 00:02:22.760 line:15% attracted new customer segments, 49 00:02:22.760 --> 00:02:26.313 line:15% and won price premiums from customers willing to pay more. 50 00:02:27.250 --> 00:02:30.930 line:15% Sustainability champions also use smart technologies 51 00:02:30.930 --> 00:02:34.530 line:15% and new business models to reconfigure their supply chains, 52 00:02:34.530 --> 00:02:37.980 line:15% making them transparent, circular, and carbon efficient, 53 00:02:37.980 --> 00:02:39.490 while also treating suppliers 54 00:02:39.490 --> 00:02:42.030 line:15% and contractors ethically and fairly. 55 00:02:42.030 --> 00:02:43.180 Their reward? 56 00:02:43.180 --> 00:02:45.890 line:15% Lower operating costs and greater resilience 57 00:02:45.890 --> 00:02:48.143 line:15% in the face of supply chain disruptions. 58 00:02:49.260 --> 00:02:50.150 line:15% What's more? 59 00:02:50.150 --> 00:02:52.580 line:15% Companies delivering social impact at scale 60 00:02:52.580 --> 00:02:55.480 line:15% provide solid returns to shareholders, 61 00:02:55.480 --> 00:02:58.750 line:15% and thereby gain access to better financing. 62 00:02:58.750 --> 00:03:00.710 Meanwhile, governments and NGOs 63 00:03:00.710 --> 00:03:03.040 not only give them license to operate, 64 00:03:03.040 --> 00:03:05.613 line:15% but also seek to partner and invest with them. 65 00:03:07.550 --> 00:03:09.620 BCG is uniquely positioned 66 00:03:09.620 --> 00:03:11.630 to help companies through every step 67 00:03:11.630 --> 00:03:14.230 of their sustainability transformation journey. 68 00:03:14.230 --> 00:03:16.750 Our social impact experts know how and where 69 00:03:16.750 --> 00:03:17.960 the private sector can make 70 00:03:17.960 --> 00:03:19.860 the biggest difference in the world. 71 00:03:19.860 --> 00:03:23.600 We help companies articulate and activate their purpose. 72 00:03:23.600 --> 00:03:26.300 We uncover new investible ideas 73 00:03:26.300 --> 00:03:28.290 and innovative business models 74 00:03:28.290 --> 00:03:32.080 and bring the investor perspective to each project. 75 00:03:32.080 --> 00:03:35.230 We catalyze collective action through industry-level 76 00:03:35.230 --> 00:03:37.460 and cross-sector collaborations. 77 00:03:37.460 --> 00:03:40.000 We've supported hundreds of corporate clients 78 00:03:40.000 --> 00:03:42.570 in this journey --- sustainability leaders, 79 00:03:42.570 --> 00:03:43.960 as well as beginners. 80 00:03:43.960 --> 00:03:46.400 We stand ready to partner with you 81 00:03:46.400 --> 00:03:49.240 on your sustainability transformation journey 82 00:03:49.240 --> 00:03:52.170 to help you generate lasting business value 83 00:03:52.170 --> 00:03:54.726 while also making the world a better place. 84 00:03:54.726 --> 00:03:57.309 (bright music)