Speakers:
Neil Austin – Global Head of Markets, KPMG in the UK
Willy Kruh – Global Chairman – Consumer Markets, KPMG in Canada
Pat Dolan – Head of Consumer Markets, KPMG in the US
Archie van Beuren – Former Chief Customer Officer, Campbell Soup Company, US Nick Debnam – Head of Consumer Markets – Asia Pacific Region, KPMG in China
George Svinos – Head of Retail – Asia Pacific Region, KPMG in Australia
Ian Pye – Former President, Central Food Retail Co., Thailand
Mark Larson – Global and US Head of Retail, KPMG in the US
Vicente Yanez – CEO, Mexican National Retail Association, Mexico
Ian Starkey – Head of Consumer Markets – Europe, KPMG in the UK
Neil Austin – Global Head of Markets, KPMG in the UK
I think the sustainability agenda of many clients actually is a good, commonsense cost reduction agenda as well. So I think they align quite nicely. A lot of the moves of companies to actually be more green, reduces their use of raw materials, improves their efficiency, cuts their costs, so I think they align very nicely. I think the one thing that’s suffered is some of the external reporting which actually requires more cost, more effort, more time to do and I think we’re going to see that delayed somewhat. But in terms of the practical steps to become more green, more sustainable, I think companies are probably accelerating that if anything because it’s good economics.
Willy Kruh – Global Chairman – Consumer Markets, KPMG in Canada
There was a study a year ago that said that 85% of people would make a buying decision based on a company’s sustainability programme. A similar study, not the same constituents, said 17% today would make that same decision. So that clearly has to affect a client’s mindset. If their sustainability programme is changing lighting, changing packaging which helps their bottom line and does good for the community, I think that goes full bore but if they can cut back and still save some money and still do well and still maintain it, then I think that’s where many of these clients are going.
Pat Dolan – Head of Consumer Markets, KPMG in the US
performers are focusing just on survival so they don’t have time or money to focus on sustainability but the better performing companies are, in fact, finding that they can reduce costs and be more environmentally friendly and sustainable at the same time. So, for instance, a lot of branded companies that we’ve talked to have focused on the packaging of the product and downsizing or reducing the packaging, which is deemed to be not very environmentally friendly, and while they do that reduce the costs and benefit the consumer all at the same time. So those sustainability strategies for those companies are moving forward in a very aggressive way because they see benefits on a number of fronts.
Archie van Beuren – Former Chief Customer Officer, Campbell Soup Company, US
In 2008 we actually issued our first corporate social responsibility statement and, really, what that did was take stock of where we are on sustainability and basically all the issues of corporate social responsibility. And then, what we’ve really done from there is started to build and that really is saying where do we want to focus our efforts around sustainability, and we’ve really picked a number of areas. We’ve picked, for us as a food manufacturer, we’ve picked water, we’ve picked waste, we’ve picked packaging, we’ve picked agriculture as core areas where we really want to see our company, Campbell’s Soup, make a difference.
Nick Debnam – Head of Consumer Markets – Asia Pacific Region, KPMG in China Within China, the sustainability agenda isn’t that high up. For people sourcing from China, though, sustainability has become a very key issue, and to that extent the manufacturers that we deal with and the sourcing companies we deal with really have sustainability very high up the agenda. And I don’t think the global downturn will affect that. So I don’t really see a big change. I don’t think people will drop the agenda, I think it will become more important as time goes on.
George Svinos – Head of Retail – Asia Pacific Region, KPMG in Australia
Well, certainly I think from a corporate perspective it’s easy for us to sit back and, sort of, turn down the importance of sustainability but ultimately if the consumer is still concerned about sustainability, then as a corporate we have but no choice but to continue to invest in sustainability.
Ian Pye – Former President, Central Food Retail Co., Thailand
Overall, probably slowed it down a little bit but it’s still the same vision. We’ve still got to address the same issues. It’ll take us a little bit longer to get there because we’ve got to balance between affordability and what is the priority for customers currently. So we’re still sticking on the same road but going a little bit slower.
Mark Larson – Global and US Head of Retail, KPMG in the US
If you look at the sustainability agenda I think the priorities have shifted a little bit, given the times that we’re in, and I think the priorities at the top of the list now are the ones that deal with becoming, you know, more effective and efficient operationally and reducing costs.
Vicente Yanez – CEO, Mexican National Retail Association, Mexico
Well, what you will have, you will have is low down in your agenda for sustainability because of budgets. The budget would be tighter but I think the companies will have to see this as the future, sustainable. A company that doesn’t think of sustainability won’t have any future so I think it’s just a matter of time.
Ian Starkey – Head of Consumer Markets – Europe, KPMG in the UK
I don’t think there’s any doubt that for most companies they put sustainability back compared with where it was on their agenda two years ago. Cost-wise it’s going to be one of the first things that gets hit. On the other hand, I think most of the majors really are committed to sustainability and they’ll continue to invest, just not as much as they would have done but for the downturn.