THE SCIENCE OF SETTING CREDIBLE, COURAGEOUS SUSTAINABILITY GOALS May 2018

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1 THE SCIENCE OF SETTING CREDIBLE, COURAGEOUS SUSTAINABILITY GOALS May 2018

Our panel Jon Dettling Global Director, Services + Innovation Quantis Jeff Hanratty Applied Sustainability Manager General Mills Michael Beutler Director of

2 Our panel Jon Dettling Global Director, Services + Innovation Quantis Jeff Hanratty Applied Sustainability Manager General Mills Michael Beutler Director of Sustainability Operations Kering Rachael Sherman Director Global Sustainability McDonald s The Science of Setting Credible, Courageous Sustainability Goals 2

3 Let s hear more about you with some polls!

4 We guide top organizations to define, shape and implement intelligent environmental sustainability solutions. We deliver resilient strategies, robust metrics, useful tools, and credible communications. 4

5 Our work BUSINESS SCIENCE Building the bridge between the science of sustainability to its application in business 5

6 Sustainability goals Goals to be sustainable The Science of Setting Credible, Courageous Sustainability Goals 6

7 A SMART-ER shift in goal-setting S M A R T pecific easurable ttainable elevant ime Based The Science of Setting Credible, Courageous Sustainability Goals 7

8 A SMART-ER shift in goal-setting S M A R T E R cience-based oving the pack mbitious elevant imely arth-bound eaching out The Science of Setting Credible, Courageous Sustainability Goals 8

9 What is a science-driven goal? What companies are setting these goals?

10 The trend is being led by the Science-Based Targets initiative (carbon) Now spreading to other context-based and Planetary Boundaries frameworks The Science of Setting Credible, Courageous Sustainability Goals 10 11

11 If you think you re leading, but no one is following you, then you re only taking a walk. -John Maxwell, author on Leadership The Science of Setting Credible, Courageous Sustainability Goals 11

12 The leaders are already on their way. For the rest: When will you join? The Science of Setting Credible, Courageous Sustainability Goals 12

13 Our panel Jon Dettling Global Director, Services + Innovation Quantis Jeff Hanratty Applied Sustainability Manager General Mills Michael Beutler Director of Sustainability Operations Kering Rachael Sherman Director Global Sustainability McDonald s The Science of Setting Credible, Courageous Sustainability Goals 13

18 Our panel Jon Dettling Global Director, Services + Innovation Quantis Jeff Hanratty Applied Sustainability Manager General Mills Michael Beutler Director of Sustainability Operations Kering Rachael Sherman Director Global Sustainability McDonald s The Science of Setting Credible, Courageous Sustainability Goals 18

19 MEASURING IMPACT Is it science or economics? Michael Beutler, Director of Sustainability Operations 22 May 2018

21 PIONEERING NCA AT KERING lement Natural capital accounting (EP& ü First global company to implement Natural Capital Accounting (EP&L) ü First global company to set a reduction target on Natural Capital ü First French & Luxury company to implement an SBT target ü Committed to a 50% Scope 1-3 reduction by 2025 ü 40% of the supply chain measured by EP&L by 2025 as Scope 3 purchased goods and services, aligned with Kering s Sustainability Strategy EP&L target

22 Our panel Jon Dettling Global Director, Services + Innovation Quantis Jeff Hanratty Applied Sustainability Manager General Mills Michael Beutler Director of Sustainability Operations Kering Rachael Sherman Director Global Sustainability McDonald s The Science of Setting Credible, Courageous Sustainability Goals 22

23 1 USING OUR SCALE FOR GOOD TITLE OF PRESENTATION ON

24 McDonald s Scale for Good

Using our Scale for Good Goals for 2022-2030 GLOBAL PRIORITIES Commitment to Families Beef Sustainability Packaging and Recycling Youth Employability Kids Nutrition, Happy Readers, RMHC

25 Using our Scale for Good Goals for GLOBAL PRIORITIES Commitment to Families Beef Sustainability Packaging and Recycling Youth Employability Kids Nutrition, Happy Readers, RMHC OTHER FOUNDATIONAL RESPONSIBILITIES Climate Change: Science-Based Targets for Restaurants, Offices, Supply Chain Priority Impact Areas, Sustainable Sourcing Goals, Commitment on Forests

27 A solid foundation

28 How important was setting achievable targets in your goal-setting process? The Science of Setting Credible, Courageous Sustainability Goals 28

29 Let s go to the polls! #3 Where are you at in the science-based goal-setting process? The Science of Setting Credible, Courageous Sustainability Goals 29

The Science-Driven Goal Process: Moving from

UNDERSTAND THE FIT Understand goals, frameworks,

30 The Science-Driven Goal Process: Moving from commitment to action! 1. UNDERSTAND THE FIT Understand goals, frameworks, and methodologies and choose what s appropriate for your goals 3. DEFINE + COMMIT Objectives aligned with a 2 trajectory 2. MEASURE Carbon emissions (and other indicators) across the entire Scope 3 value chain 4. GO! Deploy action plans and monitor progress on an annual basis 30

INITIATIVE SBT Setting GHG emission reduction targets in line with climate science is a great way to future-proof growth - SBT The SBTi provides: A

31 INITIATIVE SBT Setting GHG emission reduction targets in line with climate science is a great way to future-proof growth - SBT The SBTi provides: A framework to define 2 emission reduction targets Support commitment > action Goal validation The Science of Setting Credible, Courageous Sustainability Goals 31

The Process: Submitting Targets to SBTi COMMIT Commitment Letter signed

criteria Within 24 months after commitment SUBMIT Fill in and submit the

DISCLOSE The targets will be publicly disclosed on the website Disclose

32 The Process: Submitting Targets to SBTi COMMIT Commitment Letter signed by the CEO DEVELOP Define targets that comply with the eligibility criteria Within 24 months after commitment SUBMIT Fill in and submit the Science-Based Target form 6-8 weeks review before getting the results DISCLOSE The targets will be publicly disclosed on the website Disclose progress annually The Science of Setting Credible, Courageous Sustainability Goals 32

33 To create positive change we can't overestimate the event and underestimate the process. - John Maxwell, author on Leadership 33 TITLE OF PRESENTATION ON The Science of Setting Credible, Courageous Sustainability Goals

34 Ok, so you re motivated to do this. You see the rationale and the benefits. The frameworks and processes are clear. Now: How do you get your CEO to take that leap with you? SEISMIC SHIFT IN ECO-DESIGN The Science 34 of Setting Credible, Courageous Sustainability Goals 34

35 You need teams on-board to succeed. The Science of Setting Credible, Courageous Sustainability Goals 35

36 But often you hear: It s not possible! It s not accurate enough! We can t set an objective that we are not sure to achieve! The Science of Setting Credible, Courageous Sustainability Goals 36

Tools + tips to garner peer and leadership buy-in for a science-driven sustainability strategy Focus on the Business Why+ Speak for your audience You re in good company!

37 Tools + tips to garner peer and leadership buy-in for a science-driven sustainability strategy Focus on the Business Why+ Speak for your audience You re in good company! SOLUTIONS + SBT Prep Workshops, Materiality, Metrics, Strategic/Risk Planning Coaching, Communications, Storytelling, Mission Alignment Benchmarking, Business Case Development The Science of Setting Credible, Courageous Sustainability Goals 37

38 Value Chain: > Shift to Scope 3 Scope 1 Scope 2 Scope 3 The Science of Setting Credible, Courageous Sustainability Goals 38

39 The benefits of looking at the entire value chain Focus on what s most relevant Allows us to connect to big-picture global goals Promote shared ownership of action and progress The Science of Setting Credible, Courageous Sustainability Goals 39 39

40 We ll need to be getting better while we re getting smarter The Science of Setting Credible, Courageous Sustainability Goals 40

41 Multi-Sector, Multi-Player Initiatives Guide Progress The Science of Setting Credible, Courageous Sustainability Goals 41

42 The trend is being led by the Science-Based Targets initiative (carbon) Now spreading to other context-based and Planetary Boundaries frameworks The Science of Setting Credible, Courageous Sustainability Goals 42 11

43 MEASURING IMPACT Is it science or economics? Michael Beutler, Director of Sustainability Operations 22 May 2018

44 CAN SBTS BRING OUT THE BEST OF NCA AND PBS? Natural Capital Planetary Boundaries Economics Science 19 June,

45 Ground level view

46 Macro View

47 UPSCALING VS DOWNSCALING Natural Capital Planetary Boundaries Downscaling Upscaling 19 June,

49 What s next? The Science of Setting Credible, Courageous Sustainability Goals 49

50 And you: What s next? #4 If you have set science-driven goals on carbon, what are your next priorities? The Science of Setting Credible, Courageous Sustainability Goals 50

51 Q&A with the PANEL Jon Dettling Global Director, Services + Innovation Quantis Jeff Hanratty Applied Sustainability Manager General Mills Michael Beutler Director of Sustainability Operations Kering Rachael Sherman Director Global Sustainability McDonald s The Science of Setting Credible, Courageous Sustainability Goals 51

52 THE SCIENCE OF SETTING CREDIBLE, COURAGEOUS SUSTAINABILITY GOALS Thank you for joining us today! For more information on how to make progress on science-driven goals, contact Jon Dettling. WEBINAR May 22, 2018

53 Trajectories aligned with 2 leads to a paradigm shift GHG Emissions 2 SCIENCE BASED ALIGNEMENT BASELINE ENERGY EFFICIENCY RENEWABLE ENERGY RESPONSIBLE PURCHASING ECO- DESIGN GAP TO DEVELOP SOLUTIONS The Science of Setting Credible, Courageous Sustainability Goals 28

54 What about you? What responses do you get from your Leadership when you discuss science-driven goal setting? Put it in the chat box! 38

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