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1、 A road well-traveledApril 2023How family businesses are guiding the sustainability journeyA road well-traveled How family businesses are guiding the sustainability journey|1Table of contents01Foreword09Why follow the family business route to sustainability?10Putting sustainability on the strategic

2、fast track11Acknowledgments and contacts08Lessons from the road02Executive Summary03Why the sustainability journey is a once-in-a-lifetime opportunity 04Connecting the past,present and future 05Navigating a long and winding road 07Eight keys for unlocking the sustainability of your business06Going d

3、own the roadIn 1993,John Elkington coined the term triple bottom line.He described it as a system change,and one that would lead to the transformation of capitalism.It encouraged companies to stop concentrating solely on their profits and to include goals in their business strategies for improving t

4、he lives of people and the health of the planet.At the time,the notion of creating shared value was a radical new way for companies to think about their business objectives and performance.It also marked the beginning of the decline of shareholder capitalism and the rise of stakeholder capitalism.Th

5、e expectation was that companies would serve society as a whole not only their owners and shareholders.Fast forward 30 years.Stakeholder capitalism has gone mainstream with the rise of the sustainability agenda.It is top-of-mind across the business world in every sector.The principles of shared valu

6、e are at its core,but there is one important difference thats rising quickly in todays environment and thats the need for urgent action.The pandemic made sustainability even more relevant.It increased the need for business families to protect their businesses by examining the efficiency of their ope

7、rating practices and by building deeper and stronger relationships with their communities and their employees.In many ways,sustainability is becoming a basis for a license to operate.Organizations of every type are being challenged on the role they play and the impact theyre having on the world arou

8、nd them.Many governments are pushing companies to proceed with haste,offering incentives to encourage actions that are climate-smart and contribute to long-term social equity and economic sustainability.Customers are also demanding it,and theyre ready to follow(and be loyal to)companies that are abl

9、e to demonstrate the positive impact that their businesses are having on people and the planet.But no one can solve the worlds biggest environmental and societal issues alone.It requires innovative thinking,bold ideas and unique experiences from businesses and industries of every type and size.Fortu

10、nately,for many family businesses,the road to sustainability is already one that is well-traveled.The fundamentals of shared value are familiar territory,and theyre woven throughout the family capitalism business model.While they may be taking a variety of routes and reaching new milestones at diffe

11、rent stages of their journeys,the progress they have made so far should be instructive and an inspiration for organizations of every type.This is why we believe that there is a once-in-a-lifetime opportunity for family businesses to take a leadership role in guiding others on their sustainability jo

12、urneys.Going down the roadForewordNavigating a long and winding road Eight keys for unlocking the sustainability of your businessExecutive Summary Lessons from the road Why follow the family business route to sustainability?Connecting the past,present and future Putting sustainability on the strateg

13、ic fast trackAcknowledgments and contactsWhy the sustainability journey is a once-in-a-lifetime opportunity ForewordForewordFor many companies,their sustainability actions are already beginning to have an impact on their businesses.Those that have B Corp or other types of certification for their soc

14、ial and environmental progress are witnessing greater access to capital and better employee recruitment and retention.A road well-traveled How family businesses are guiding the sustainability journey|3Following a proven pathTo explore the various routes to sustainability that family businesses are t

15、aking,KPMG Private Enterprise and the STEP Project Global Consortium conducted personal interviews and led group discussions with family business leaders across the world.Their stories are insightful and practical and are supported by a detailed analysis of the sustainability performance data from o

16、ur previous global survey of 2,439 family business leaders.We recognize that the road to sustainability is rarely a straight line.There are often twists and turns,small detours even the occasional U-turns along the way.This may be a long and winding road,but we believe the unique characteristics and

17、 experiences of family businesses offer an invaluable and practical guide for other leaders to follow on their own sustainability journeys.Going down the roadForewordNavigating a long and winding road Eight keys for unlocking the sustainability of your businessExecutive Summary Lessons from the road

18、 Why follow the family business route to sustainability?Connecting the past,present and future Putting sustainability on the strategic fast trackAcknowledgments and contactsWhy the sustainability journey is a once-in-a-lifetime opportunity ForewordForewordTom McGinness Global LeaderFamily BusinessKP

19、MG Private Enterprise KPMG International andPartner,KPMG in the UKAndrea CalabrSTEP Project Global Consortium Academic DirectorDirector,IPAG Entrepreneurship&Family Business Center IPAG Business School A road well-traveled How family businesses are guiding the sustainability journey|4Going down the

20、roadForewordNavigating a long and winding road Eight keys for unlocking the sustainability of your businessExecutive Summary Lessons from the road Why the sustainability journey is a once-in-a-lifetime opportunity Why follow the family business route to sustainability?Connecting the past,present and

21、 future Putting sustainability on the strategic fast trackAcknowledgments and contactsThere is a widely adopted view of sustainability as meeting the needs of the present without compromising the ability of future generations to meet their own needs.This is already a familiar concept among family bu

22、sinesses,many of which operate with a sense of duty to create and preserve a healthy,diverse and resilient world for their children and their grandchildren.For many,investing in sustainability and operating in a sustainable way is not only viewed as the right thing to do,but its also becoming an ess

23、ential engine of their companies growth.Sustainability conversations are high on the agenda across the world.Many of the discussions at the 2023 annual meeting of the World Economic Forum in Davos,for example,reflected a sense of urgency to accelerate sustainability progress across industries and ge

24、ographies.For many,this is a response to ever-increasing stakeholder scrutiny and regulatory Executive summaryreporting requirements.It requires good data,credible metrics and robust digital solutions,and it is making digitalization an important enabler to companies strategies as they transition to

25、a more sustainable future.Those companies that are able to anticipate and meet these rising environmental and societal expectations are also more likely to improve their reputations,attract and retain top talent and generate new business opportunities.Sustainability is now a business imperative,as m

26、uch as it is a stewardship one,and those companies that fail to adapt may struggle to compete in a new,low-carbon world.This is why family businesses may have a first-mover advantage on the path to sustainability.The commitment to create value for all of their stakeholders has crossed a multitude of

27、 generations.It is deeply embedded in families values and woven throughout their business models.I truly believe that family businesses that successfully engage with all their stakeholders on this sustainability journey will not only survive but prosper.Those that dont step up are likely going to be

28、 left behind.For me,the choice for companies may be precisely that binary!Everyone is at a different stage,and there is no right or wrong way forward.But I also truly believe that family businesses have been living and prospering based on core sustainability principles across the generations,and the

29、re are many lessons that everyone can take away from their experiences.Tom McGinness Global Leader,Family Business KPMG Private Enterprise KPMG International and Partner,KPMG in the UKForewordExecutive Summary A road well-traveled How family businesses are guiding the sustainability journey|5Going d

30、own the roadForewordNavigating a long and winding road Eight keys for unlocking the sustainability of your businessExecutive Summary Lessons from the road Why the sustainability journey is a once-in-a-lifetime opportunity Why follow the family business route to sustainability?Connecting the past,pre

31、sent and future Putting sustainability on the strategic fast trackAcknowledgments and contactsKeeping the destination in mindSome companies,especially smaller businesses,have concerns regarding the short-term economic feasibility and costs of sustainability.Nevertheless,many are beginning to take th

32、e first steps,with the rising expectations and encouragement of many different stakeholders.The aspiration to leave a meaningful and lasting legacy has always been present.Family businesses recognize that adopting sustainability principles and practices is the only way forward to create the world th

33、ey want for future generations.In this environment family business leaders who contributed to our research typically describe three interconnected goals for maintaining the sustainability of their businesses while also contributing to a more sustainable world:1.Maintaining the economic prosperity an

34、d long-term social,environmental and reputational sustainability of their businesses for the benefit of current and future generations2.Integrating responsible environmental and social practices in their businesses3.Taking a leadership role in supporting people and planet initiatives outside the bus

35、iness via philanthropic efforts such as charitable donations,grants distributed through family foundations and philanthropic investing in family offices.Family business success factorsHighly-structured governanceActive non-family member involvementDispersed family ownershipIncreased number of female

36、 board membersDigitalization as a sustainability enablerCharismatic or transformational leadershipStrong entrepreneurial mindsetForward-looking orientation1 1STEP Project Global Consortium&KPMG Private Enterprise,“The regenerative power of family businesses transgenerational entrepreneurship”,2022.4

37、3 percent of 2,439 family business survey respondents reported high levels of sustainability and digitalization based on eight key success factors:Executive Summary Sustainability is a step-by-step journey,and its important to have a clear idea of the overall direction of travel that the business an

38、d the family wants to follow.Institutions can play a critical role in making the journey easier by helping to set appropriate standards for society;by ensuring that regulations are not overly complex;and that businesses can act independently without having to rely on potentially costly expertise fro

39、m outside their businesses.Alejandro Escrib-Esteve Full Professor of Management Universitat de Valncia 12345678A road well-traveled How family businesses are guiding the sustainability journey|6Going down the roadForewordNavigating a long and winding road Eight keys for unlocking the sustainability

40、of your businessExecutive Summary Lessons from the road Why the sustainability journey is a once-in-a-lifetime opportunity Why follow the family business route to sustainability?Connecting the past,present and future Putting sustainability on the strategic fast trackAcknowledgments and contactsMakin

41、g sustainability business as usualWith these three goals in mind,there are many potential routes along the sustainability journey to consider.The family business leaders who contributed their insights to this report provided a wealth of examples of the paths theyve have chosen in making sustainabili

42、ty central to what they now consider to be business as usual.While their routes may differ,all have shared a passion and a sense of urgency to put sustainability at the top of their agendas and seize new opportunities to further strengthen their reputations and make their operations more efficient.O

43、pportunities dont come without challenges,however,and the primary concerns among family businesses are generally related to the increased cost of retrofitting their operations and the resources that are required to fulfill increasing regulatory and strategic requirements.New regulations often have m

44、ore extensive data capabilities,and sustainability reporting will likely require additional IT resources and infrastructure for measuring,controlling and managing the environmental and social impact of companies efforts.Despite the additional costs and resources that may be required,many family busi

45、nesses have underscored the importance of shifting the thinking away from sustainability as an additional cost of doing business and towards an investment in the future.As with any investment,they have emphasized how any investment in sustainability must deliver impact and results and make economic

46、sense in order for business leaders to be able stand up and sustain their actions over the long term.Even though the sustainability journey often began with targeted plans to comply with regulations to reduce a companys carbon footprint or minimize waste,a major shift is already taking place towards

47、 a more strategic approach that integrates sustainability objectives in the long-term business strategy.As one family business leader emphasized,it isnt just about creating economic,environmental or social value,but also about creating family value for todays generation and for those to come.Executi

48、ve Summary For five generations,our family has operated with a clear purpose:to enrich the lives of our customers and our communities.That purpose has been driven by a strong culture of shared values.Together,our purpose and values have been the foundation of our business model and a 325-year histor

49、y of sustainability.We are uncompromising in making sure that foundation continues to be unshakable.Jonathan Neame Chief ExecutiveShepherd Neame The oldest and largest independent brewery in the UKManaging sustainability in a regulatory environmentThere are many innovative ways of supporting sustain

50、ability in family businesses.Even though theyre generally ahead of the game,government regulations can be a burden.Too much bureaucracy and red tape doesnt actually support the sustainability goals of family businesses.I believe these businesses need to make their voices heard by not only talking ab

51、out their goals but the steps theyre taking to achieve them.Dr.Daniel Mitrenga Executive Board Member DIE FAMILIENUNTERNEHMER&DIE JUNGEN UNTERNEHMER Representing the economic and political interests of family businesses and young entrepreneurs A road well-traveled How family businesses are guiding t

52、he sustainability journey|7Until recently,many family businesses have had a relatively informal approach to sustainability with a focus on doing whats right for their employees,customers and communities.But now theres greater recognition that their sustainability actions are actually potential diffe

53、rentiators with the power to create measurable competitive advantages.Because many family businesses have operated as responsible,sustainable enterprises for generations,they have tended to be relatively quiet about their efforts and their impact.In todays environment,I strongly encourage family bus

54、inesses to be more vocal about what they are doing and have been doing for many years(and often decades).Their genuine impact and bold ambitions have been well-earned and should be recognized.Alan Barr National KPMG Private Enterprise Leader Partner,KPMG in South AfricaGoing down the roadForewordNav

55、igating a long and winding road Eight keys for unlocking the sustainability of your businessExecutive Summary Lessons from the road Why the sustainability journey is a once-in-a-lifetime opportunity Why follow the family business route to sustainability?Connecting the past,present and future Putting

56、 sustainability on the strategic fast trackAcknowledgments and contactsKey takeawayThe value of a sustainability focus can include:Financial capital benefits due to increased customer attraction and retentionSocial capital benefits by upholding a reputation for making the world a better placeHuman c

57、apital benefits from attracting and retaining the best employeesCost reductions from operating responsibly and using their own resources sustainablyAccess to limited sources of capital by being more attractive to future business partners,investors and bankersRisk mitigation through environmental and

58、 societal stewardshipSeizing sustainability as a competitive advantageSome family business leaders have emphasized how sustainability is already woven into the fabric of their companys culture,making it a key factor in attracting and retaining top-performing employees.These are companies that have r

59、ecognized that todays younger generations are choosing to work only for companies that operate ethically and take good care of people and the planet.Increasingly,this is making many companies sustainability performance an important factor in winning the highly competitive war for talent.Many family

60、businesses have also recognized the commercial imperative of demonstrating the tangible impact of their sustainability priorities,which often make the difference in their successful bids to win new work and to attract and retain loyal customers.Executive Summary A road well-traveled How family busin

61、esses are guiding the sustainability journey|8Going down the roadForewordNavigating a long and winding road Eight keys for unlocking the sustainability of your businessExecutive Summary Lessons from the road Why follow the family business route to sustainability?Connecting the past,present and futur

62、e Putting sustainability on the strategic fast trackAcknowledgments and contactsWhy the sustainability journey is a once-in-a-lifetime opportunity Why the sustainability journey is a once-in-a-lifetime opportunity Why the sustainability journey is a once-in-a-lifetime opportunity A road well-travele

63、d How family businesses are guiding the sustainability journey|9Going down the roadForewordNavigating a long and winding road Eight keys for unlocking the sustainability of your businessExecutive Summary Lessons from the road Why follow the family business route to sustainability?Connecting the past

64、,present and future Putting sustainability on the strategic fast trackAcknowledgments and contactsWhy the sustainability journey is a once-in-a-lifetime opportunity Family businesses are in a position to guide others along the path to sustainability.They have a first-mover advantage if they choose t

65、o seize this leadership opportunity.The growing sustainability agendaMacroeconomic factors inflation,rising interest rates,recessionary and competitive threats are converging with never-before social changes.Many of these issues emerged alongside the pandemic.Improving employee health,wellbeing and

66、working conditions;increasing the access to safe food and water for people everywhere;mitigating human rights concerns and removing social inequities all are revolutionizing and expanding the social and environmental sustainability agenda.Much like the digital revolution,the sustainability revolutio

67、n promises to transform the way the world thinks and acts.But also,much like the digital revolution,many companies are simply moving too slowly,taking an incremental approach to sustainability at a time when the world is demanding strong leadership and an accelerated pace towards a more sustainable

68、future.As the originator of the triple bottom line remarked in a 2018 Harvard Business Review article,“We need a new wave of triple bottom line innovation and deployment.The time has come to either step up or get out of the way to shift the sustainability needle.”2 Family businesses have a rare oppo

69、rtunity in this environment,to step things up and help to lead sustainable and responsible business practices in the right direction.2“25 Years Ago,I Coined the Phrase Triple Bottom Line.Heres Why Its Time to Rethink It”,John Elkington.Harvard Business Review,June 25,2018.Why the sustainability jour

70、ney is a once-in-a-lifetime opportunity A road well-traveled How family businesses are guiding the sustainability journey|10Going down the roadForewordNavigating a long and winding road Eight keys for unlocking the sustainability of your businessExecutive Summary Lessons from the road Why follow the

71、 family business route to sustainability?Connecting the past,present and future Putting sustainability on the strategic fast trackAcknowledgments and contactsWhy the sustainability journey is a once-in-a-lifetime opportunity Can any business survive without being sustainable?Certainly not family bus

72、inesses whose underlying objectives implicitly seek to meet the needs of both the current generation and those in the future.In my experience,the responsibilities of ownership rest,not heavily,but proudly on the shoulders of family businesses.With changes in generational control and influence,the id

73、entity of the family with the business and a renewed sense of purpose has required many to rethink how their business practices align with the familys values.Increasingly,these are shared values not limited to the family and the business but to its broader stakeholders.It is central to their positio

74、n and reputation in their local communities.Robyn Langsford Partner,KPMG Family Business&Private Clients KPMG AustraliaOperating with intentThe scope of the sustainability agenda is evolving rapidly,and its important to keep its original intention in mind.The United Nations World Commission on Envir

75、onment and Development,for example,defined sustainable development as:meeting the needs of the present without compromising the ability of future generations to meet their own needs.3 Similarly,the University of California,Los Angeles(UCLA)Sustainability Committees charter4 describes sustainability

76、as:the integration of environmental,social equity,health and economic vitality in order to create thriving,healthy,diverse and resilient communities for this generation and generations to come.Both of these definitions are relevant in todays sustainability environment.They share a fundamental underl

77、ying theme thats particularly relevant and familiar to family businesses because of their sense of duty to create and preserve a healthy,diverse and resilient world for their children and grandchildren.The commitment to this ideal of generation-to-generation value creation is not new to family busin

78、esses.Its deeply embedded in the familys values and woven throughout their business model.What is new,is the opportunity for family businesses to play a larger societal role by using their long-term,multi-generational mindset as a roadmap to sustainability for others to follow.Why the sustainability

79、 journey is a once-in-a-lifetime opportunity A road well-traveled How family businesses are guiding the sustainability journey|11Going down the roadForewordNavigating a long and winding road Eight keys for unlocking the sustainability of your businessExecutive Summary Lessons from the road Why the s

80、ustainability journey is a once-in-a-lifetime opportunity Why follow the family business route to sustainability?Connecting the past,present and future Putting sustainability on the strategic fast trackAcknowledgments and contactsFollowing a well-tested road to successWhile sustainability is becomin

81、g one of the biggest considerations for most businesses today,it has historically been a relatively unconscious effort among family businesses.Driven to get the fundamentals right for how they do business,their focus has been on operating ethically and efficiently,delivering customer value,supportin

82、g community organizations and treating employees well.For businesses of all types,there is a strong case to be made for embedding sustainability goals in the overall business strategy,and to achieve superior business results by doing the right things for all of the companys stakeholders.It reinforce

83、s the conviction that focusing on sustainability and strengthening the bottom line are not and should not be mutually exclusive.In fact,that combination is a commercial imperative for many companies,not only for family businesses.As Thomas Martin,Non-Executive Chairman of Arco has remarked,“On the o

84、ne hand,sustainability is about continuously looking for ways to operate more efficiently.But our sustainability strategy is also adding to our bottom line by becoming a differentiated element of our business.In a recent multi-million-pound tender,for example,the sustainability score accounted for 6

85、0 percent of the weighting for awarding the contract.In the past,price would have been the primary decision factor.But being able to present our sustainability Why the sustainability journey is a once-in-a-lifetime opportunity Family businesses are values-based.Each family does whats authentic to th

86、em and what feels like the right thing to do.So,for our business and our family,reducing carbon emissions is very important,but sustainability is so much broader than just being green.We really want to make sure that we can pass a healthy business down through future generations.And when we talk abo

87、ut the next generation,we arent only concerned with the future generations of our family,but about creating value in the next generation of the business,for our employees and their families,our customers,patients and communities as well.Rupa Patel Executive Director Day Lewis A 47-year-old,second-ge

88、neration pharmacy community with 300 employees in the UK and Europestrategy and provide evidence of what were doing,where were going and how were going to get there was clearly an important and successful differentiator for winning the work.”Increasingly,its becoming a differentiator for not only wi

89、nning new business,but for attracting and keeping top-performing employees as well in a highly competitive talent market.A road well-traveled How family businesses are guiding the sustainability journey|12Going down the roadForewordNavigating a long and winding road Eight keys for unlocking the sust

90、ainability of your businessExecutive Summary Lessons from the road Why follow the family business route to sustainability?Connecting the past,present and future Putting sustainability on the strategic fast trackAcknowledgments and contactsWhy the sustainability journey is a once-in-a-lifetime opport

91、unity Key takeawaySustainability as a path to successSustainability is transforming the way the world thinks and acts.It requires strong leadership and an accelerated pace towards a more sustainable future.Family businesses are well positioned to lead the path to sustainability because of their trad

92、itional sense of duty to create and preserve a healthy,diverse and resilient world for their children and grandchildren.Focusing on sustainability and strengthening the bottom line are not mutually exclusive.Increasingly,they are becoming competitive differentiators for winning new business and attr

93、acting new customers and top-performing employees.Why the sustainability journey is a once-in-a-lifetime opportunity Sustainability has always been the hallmark of successful businesses.It has been front and center among family businesses for a long time and for various reasons,including business gr

94、owth,helping their customers to thrive and gaining a competitive advantage.And with the increasing involvement of next-generation family members,there is even greater impetus to continue investments on environmental,human and social capital improvements.Brad Sprong PartnerNational Tax LeaderKPMG Pri

95、vate EnterpriseKPMG in the USA road well-traveled How family businesses are guiding the sustainability journey|13Going down the roadForewordNavigating a long and winding road Eight keys for unlocking the sustainability of your businessExecutive Summary Lessons from the road Why follow the family bus

96、iness route to sustainability?Connecting the past,present and future Putting sustainability on the strategic fast trackAcknowledgments and contactsWhy the sustainability journey is a once-in-a-lifetime opportunity Connecting the past,present and future Connecting the past,present and future A road w

97、ell-traveled How family businesses are guiding the sustainability journey|14Going down the roadForewordNavigating a long and winding road Eight keys for unlocking the sustainability of your businessExecutive Summary Lessons from the road Why the sustainability journey is a once-in-a-lifetime opportu

98、nity Why follow the family business route to sustainability?Connecting the past,present and future Putting sustainability on the strategic fast trackAcknowledgments and contactsCreating the world we want for every generation The pandemic has made sustainability even more relevant.Simply doing the ri

99、ght thing as a responsible corporate citizen is no longer enough.In addition to developing three-and five-year business plans,we also plan for the generations that will follow,and we work diligently to leave them a better company.This is what has led us to make sustainability the centerpiece of our

100、companys purpose.We want to leave a more sustainable business and a better planet for future generations by helping to improve the environment,the economy and society as a whole.This is our central purpose.It makes sustainability more important than the purpose of growth and it is embedded in our bu

101、siness to add value by providing sustainable services to our clients.Hctor Dominguis Chief Executive Officer Grupo Dominguis Energy Services A 90-year-old,third-generation energy markets industrial services leader in Spain with over 1,000 employees worldwideIn the Sheikh Saoud Bin Khalid Bin Khalid

102、Al-Qassimi Chair in Family Business at the American University of Sharjah,UAE,we mapped the entrepreneurship and family business ecosystem in Sharjah.After analyzing the different initiatives and actions they have taken,we have identified four pillars of responsibility that are supporting the sustai

103、nability strategies of family businesses.Beneath each of these four pillars is their continuing commitment to local communities.By doing what is vital for today,family businesses are fulfilling their purpose to contribute to a better tomorrow.Rodrigo Basco STEP Project Global Consortium Board Chair

104、Professor&Sheikh Saoud Bin Khalid bin Khalid Al-Qassimi Chair in Family Business American University of SharjahAn integrated multi-dimensional business modelIn the family business model,sustainability is a two-sided coin.The business strategy concentrates on decisions that have been made in the past

105、 to maintain the companys competitiveness today,while the sustainability strategy is focused on decisions that are being made today for the companys future competitiveness.The main purpose of family business sustainability is to strategically develop a business model that answers the question:What a

106、re we going to do today to develop a better tomorrow?And its the responsibility of family business leaders to establish the practices,processes and structures for synchronizing their business and sustainability strategies in order to connect the past and the present with the future.Connecting the pa

107、st,present and future A road well-traveled How family businesses are guiding the sustainability journey|15Going down the roadForewordNavigating a long and winding road Eight keys for unlocking the sustainability of your businessExecutive Summary Lessons from the road Why the sustainability journey i

108、s a once-in-a-lifetime opportunity Why follow the family business route to sustainability?Connecting the past,present and future Putting sustainability on the strategic fast trackAcknowledgments and contactsCorporate network responsibilitiesTo cultivate durable connections among economic and social

109、actors,sustainable family businesses adopt a stewardship approach with their employees,suppliers and customers in order to care for their future needs and expectations.Key takeawaySustainability as a long-term business strategySustainability is essential for long-term viability.Just doing the right

110、thing as a responsible corporate citizen is no longer enough.Business strategy concentrates on decisions that have been made in the past to maintain the companys competitiveness today.Sustainability strategy is focused on decisions that are being made today for the companys future competitiveness.On

111、e integrated strategy is how sustainability can become business as usual.Corporate family responsibilityBy anticipating the potential complexity of the family in future generations,sustainable family businesses are developing structures and processes to govern the family and business relationship.Th

112、e aim is to develop family corporate governance structures that meet the familys future needs without jeopardizing the economic,social and emotional meaning of the family business.Corporate spatial responsibilityTo preserve their local and regional environment,sustainable family businesses are commi

113、tted to technology and innovation;taking actions to improve their internal production processes;and supporting external initiatives that contribute to local environmental improvements and aid the natural ecosystem.Corporate social responsibilityTo care for society at large and its economic and socia

114、l actors,sustainable family businesses actively participate in philanthropic,ethical and economically responsible initiatives to improve the quality of life in local communities.Corporate network responsibilitiesTo cultivate durable connections among economic and social actors,sustainable family bus

115、inesses adopt a stewardship approach with their employees,suppliers and customers in order to care for their future needs and expectations.Sharjahs four pillars of sustainabilityConnecting the past,present and future A road well-traveled How family businesses are guiding the sustainability journey|1

116、6Going down the roadForewordNavigating a long and winding road Eight keys for unlocking the sustainability of your businessExecutive Summary Lessons from the road Why follow the family business route to sustainability?Connecting the past,present and future Putting sustainability on the strategic fas

117、t trackAcknowledgments and contactsWhy the sustainability journey is a once-in-a-lifetime opportunity Navigating a long and winding roadNavigating a long and winding road A road well-traveled How family businesses are guiding the sustainability journey|17Going down the roadForewordNavigating a long

118、and winding road Eight keys for unlocking the sustainability of your businessExecutive Summary Lessons from the road Why follow the family business route to sustainability?Connecting the past,present and future Putting sustainability on the strategic fast trackAcknowledgments and contactsWhy the sus

119、tainability journey is a once-in-a-lifetime opportunity Being green isnt good enoughThere is a green market revolution,and carbon footprints are unwelcome on the sustainability path.As a consequence,environmental protection and de-carbonization efforts are typically the first actions that come to mi

120、nd when companies begin to plan their sustainability journeys.Many family businesses,however,have a system-wide perspective on what sustainability means inside their business as well as the impact it is having outside the business.Its how families in business typically think and act as they balance

121、the need for achieving long-term financial success with the importance of ensuring that their purpose and values are reflected consistently in their actions.Many have concluded that investing in sustainability is essential as an engine for growth and for product and service innovations that will con

122、tribute to the long-term survival and success of their businesses.What road to follow?With their commitment to operate responsibly and preserve their reputations,family businesses are generally unwilling to take non-sustainable actions that may damage their reputation immediately as well as for subs

123、equent generations.5 The evidence is in the long-term relationships that many family businesses have established with their customers,suppliers and employees,while also improving social equity and economic development in the communities where they operate.This represents the very definition of share

124、d value.Even though family businesses are highly motivated to do the right thing,they may unintentionally exhibit behavior or take actions that arent sustainable.They may be unaware,for example,of major issues such as forced labor and human rights abuses in distant points along their supply chains t

125、hat arent easily identifiable.No business can have direct control over every environmental,health and social sustainability issue,so that makes the need for multiple stakeholders to work together a critical necessity.The road to sustainability will continue to widen and branch in new directions,and

126、there will likely be a few necessary detours along the way.Everyone is looking for a guide to help navigate this journey.And because its already a well-traveled path for many family businesses,their time-tested routes could well prove to be invaluable.Navigating a long and winding road 5 Dyer&Whette

127、n(2006).Family Firms and Social Responsibility:Preliminary Evidence from the S&P 500.”Entrepreneurship Theory and Practice.A road well-traveled How family businesses are guiding the sustainability journey|18Going down the roadForewordNavigating a long and winding road Eight keys for unlocking the su

128、stainability of your businessExecutive Summary Lessons from the road Why follow the family business route to sustainability?Connecting the past,present and future Putting sustainability on the strategic fast trackAcknowledgments and contactsWhy the sustainability journey is a once-in-a-lifetime oppo

129、rtunity Key takeawayThe importance of bringing others on the journeyHelp everyone in the business to understand and believe why sustainability is good for everyone.Talk to younger people they have different ways of looking at the world.Encourage diverse perspectives on trends that different stakehol

130、ders will be looking for in the future.Invite customers and suppliers to join you on the journey.When you think of sustainability,it isnt only about yourself.Its also about your customers and communities and where you want to be several years from now that is key for us.It isnt just the family owner

131、s who need to be thinking about this,but every stakeholder thats involved in or affected by our business and how they interact on the sustainability journey.Its what guides each generation in conducting business in a way thats good for everyone.And its the collaboration across our entire network tha

132、t helps to power us through.Temitope Samson Executive Director BOVAS Group A 48-year-old,second-generation one-stop energy solutions company in NigeriaNavigating a long and winding road A road well-traveled How family businesses are guiding the sustainability journey|19Going down the roadForewordNav

133、igating a long and winding road Eight keys for unlocking the sustainability of your businessExecutive Summary Lessons from the road Why follow the family business route to sustainability?Connecting the past,present and future Putting sustainability on the strategic fast trackAcknowledgments and cont

134、actsWhy the sustainability journey is a once-in-a-lifetime opportunity Going down the roadGoing down the roadA road well-traveled How family businesses are guiding the sustainability journey|20Going down the roadForewordNavigating a long and winding road Eight keys for unlocking the sustainability o

135、f your businessExecutive Summary Lessons from the road Why the sustainability journey is a once-in-a-lifetime opportunity Why follow the family business route to sustainability?Connecting the past,present and future Putting sustainability on the strategic fast trackAcknowledgments and contactsSimila

136、r paths different journeysOften,the degree of urgency and focus on sustainability may be industry dependent.There are some industries,for example,that are facing increasing pressures from their competitors and customers,including a new generation of consumers,employees and shareholders.Other compani

137、es have not yet conducted materiality assessments to identify the relevant risks to their businesses and the priority areas for action are not yet clear.Regardless of the industry,it is becoming clear that younger generations are focused on environmental and social issues,and theyre paying close att

138、ention to the ways in which companies are managing the relevant risks and the goods and services they offer.Thus,addressing these risks and openly communicating the companys progress in addressing them will increasingly be expected as part of a well-defined top management growth strategy.As is the c

139、ase with most business practices,there is no one-size-fits all approach to sustainability,and there are valuable lessons to be learned from every companys journey.Were pleased to have this opportunity to share some of these family business leaders stories and insights from a variety of industry sect

140、ors.Some are beginning to take the first steps in their journey.For others,this is already a well-traveled road.Each has a unique story to tell of their experiences and what sustainability means to their business and their family.The materiality assessment is,and will continue to be,the starting poi

141、nt for identifying critical risks around ESG,and in defining the relevant actions that can be taken to mitigate them.This requires assigning responsibility to individuals and governance committees,such as Sustainability Directors and Audit Committees who can identify the relevant internal controls t

142、hat may be required to generate the information that will be the basis for sustainability reporting.Jess Luna National KPMG Private Enterprise Leader Partner KPMG in Mexico The most visible examples of family firms with fully integrated sustainability strategies are those with B Corp certification(a

143、 private certification of for-profit companies of their social and environmental performance),many of whom have a proportion of their sales coming from export markets.Often these companies were born as sustainable enterprises,with sustainability issues initially integrated with their value propositi

144、on,and then throughout their entire process of value delivery.For instance,tree-to-bar chocolate began as a fair trade certified product,paying fair prices to local farmers and supporting them for delivering high-quality raw materials.Several years later,these same companies started to take care of

145、CO2 emissions in their production process,introducing recyclable packaging and undertaking circular economy projects as fully integrated sustainability businesses.Jorge Andres Rodriguez Professor,ESPAE Graduate School of Management ESPOL(Ecuador)Going down the roadA road well-traveled How family bus

146、inesses are guiding the sustainability journey|21Leaving a better company and world to the next generationHctor Dominguis,Chief Executive OfficerGrupo DominguisEnergy Services(GDES)A focus on sustainable manufacturingMark Johnstone,Chief Executive Officer and Sarah Baker,Marketing Director JSP Ltd.A

147、 standout sustainability leaderThomas Martin,Non-Executive ChairmanArco Good business,well done,as a force for goodSir James Wates CBE,ChairmanWates Group Making remuneration a catalyst for changeCarlotta Rossi Luciani,Executive DirectorCAREL IndustriesA living history of sustainabilityJonathan Neam

148、e,Chief ExecutiveShepherd Neame1Transitioning to a formal sustainability commitmentJim Barry,Managing DirectorBarry Group 257634Explore unique stories from family business leadersGoing down the roadForewordNavigating a long and winding road Eight keys for unlocking the sustainability of your busines

149、sExecutive Summary Lessons from the road Why follow the family business route to sustainability?Connecting the past,present and future Putting sustainability on the strategic fast trackAcknowledgments and contactsWhy the sustainability journey is a once-in-a-lifetime opportunity Going down the roadA

150、 road well-traveled How family businesses are guiding the sustainability journey|22Arco has been awarded a gold medal for sustainability after an assessment by EcoVadis,the worlds largest and most trusted provider of business sustainability ratings.Thomas Martin,Arcos Non-Executive Chairman,describe

151、s how conducting business responsibly has always been part of what the company represents and how it operates.However,the company recently took steps to formalize its approach to sustainability by creating a sub-committee of the board thats charged with reviewing the companys current sustainability

152、journey;what it could become;and how to close the gap to get the company to where it wants to be.He says that“We like to think of ourselves as a significant player in helping to shape the market in terms of any safety products and services and well supply the training to make sure you go to work saf

153、ely.Our philosophy on safety is that if youre responsible,you can pretty much do anything if you do it the right way,with the right tools and the right expertise.Its all about enabling that to happen.”Arcos experience has shown that because family businesses are generally aligned as owners,partners

154、and leaders of the business,it makes it possible to have conversations quickly and act on important sustainability issues.A step forward on the sustainability journey:Formalizing the strategy“Over the last 20 years,”says Thomas,“we have been addressing a lot of matters that are now recognized as sus

155、tainability issues,but we wanted to formalize everything that we had been doing.That included the responsible actions weve taken regarding our We had been addressing a lot of matters that are now recognized as sustainability issues for many years,but we wanted to formalize it.If you link your sustai

156、nability and corporate strategies,put resources behind it and report on it monthly you end up with a program that leads to a safe business,safe people and a safe planet.Thomas Martin Non-Executive Chairman ArcoExperts in safety and the UKs leading supplier of personal safety productsA standout susta

157、inability leaderArco UKEstablished:1887Family:MartinBusiness sector:Manufacturing and distribution of personal safety productsCurrent leaders generation:FifthCase Study1234567Going down the roadForewordNavigating a long and winding road Eight keys for unlocking the sustainability of your businessExe

158、cutive Summary Lessons from the road Why the sustainability journey is a once-in-a-lifetime opportunity Why follow the family business route to sustainability?Connecting the past,present and future Putting sustainability on the strategic fast trackAcknowledgments and contactsGoing down the roadA roa

159、d well-traveled How family businesses are guiding the sustainability journey|23supply chain management and our lobbying efforts with governments on responsible supply chains.To take a more strategic approach,we asked one of our non-executive directors to set up a board committee to make sure that wh

160、atever we came up with wasnt a bolt-on or a tick box activity or greenwashing,but something that would actually come alive.”In Arcos case,that required an investment of time and money in determining the permanent full-time executive resources that would be needed to integrate sustainability througho

161、ut the companys operations.Learning and knowledge-sharing was an integral part of this stage of the journey,with the companys non-executive director and the general counsel enrolling in an intensive course with delegates from all over the world who were at various stages in their sustainability jour

162、neys.Subsequently,their challenge was to join up everything that was being done across the business from a sustainability perspective,and to deliver a clear message to the business that these actions were not a proprietorial whim.Thomas notes that“The outcome of this challenge provided us with a ver

163、y rich resource,which we hadnt really understood.After going through the exercise,we realized that we already had 584 sustainable products out of a total of 20,000 in our portfolio.Circular economy models were already in play,and we were able to identify what we were already doing in terms of decarb

164、onization,waste management and energy equalization.As a result of this exercise,our business has become even better because it has increased the amount of collaboration taking place all across our business in an assortment of spin-off activities.”Sustainability as a competitive advantageAllocating t

165、ime,money and encouraging debate throughout Arco also led to a series of better questions being asked of the sustainability project team.Thomas highlights how“We were getting better answers from Gen Z because these 19 and 20 year-olds who are committing to our business want personal and career devel

166、opment,but they also want to feel that they are aligning their efforts with a purpose that they can believe in.Frankly,we are all in a race for talent,and having a clear statement that this is a core part of what our company is about is integral to our strategy.It has made us very attractive in gett

167、ing the best talent to join us and that also gives us a competitive advantage.”Arco has aligned its sustainability strategy with selected UN Sustainable Development Goals.The company has invested approximately half a million pounds in virtual reality to reduce travel and create safe environments for

168、 its training courses.It has also made significant investments along with Teesside University to create a potential game-changing(and globally patent-protected)technology for recycling Personal Protective Equipment(PPE).The company is now beginning to communicate its methodology and approach to sust

169、ainability externally.The final piece was the completion of a materiality audit to work out which elements of sustainability are important to Arcos customers,the community and other stakeholders.That audit was conducted independently,and it identified that the company is already meeting approximatel

170、y 78 percent of its stakeholders needs.The question now is,how can the company turn the missing 22 percent into a reality?“We dont yet have a full set of KPIs to measure the impact of our strategy,”says Thomas,“but we hope to have agreement on it by mid-year.We aim to set Science Based Targets(SBTi)

171、which will inform our path to Net Zero.Its amazing if you link your sustainability strategy with your corporate strategy,put resources behind it,and report on it monthly you end up with a program that leads to a safe business,safe people and a safe planet.This isnt a nice to have,its a need to have

172、and its totally worthwhile.”Sustainability as a commercial imperative and the right thing to doFocusing on sustainability and adding to the bottom line are not mutually exclusive.Operationally,it improves efficiently.For Arco,it has also added to the companys bottom line by creating a differentiated

173、 approach.In a recent multi-million pound tender,for example,the sustainability score accounted for 60percent of the weighting.“You expect it to be about price,”concludes Thomas,“but sustainability was the defining factor in our ability to win this bid.I can name six contracts in the past four month

174、s where sustainability has been the key to Arco winning the business,and thats because we can provide evidence of what were doing,where were going and how were going to get there.A companys sustainability strategy and impact have out-and-out commercial implications as well as being the right and res

175、ponsible thing to do.”Going down the roadForewordNavigating a long and winding road Eight keys for unlocking the sustainability of your businessExecutive Summary Lessons from the road Why follow the family business route to sustainability?Connecting the past,present and future Putting sustainability

176、 on the strategic fast trackAcknowledgments and contactsWhy the sustainability journey is a once-in-a-lifetime opportunity Going down the roadA road well-traveled How family businesses are guiding the sustainability journey|24Barry Group is Irelands leading family-run wholesale distribution company

177、and it services over 1,500customers nationwide.Founded in 1955,the Barry Group has successfully grown from a local business to a leading wholesale distribution company,with over 250 employees operating from its headquarters in Cork,Ireland.The beginning an unconscious commitment to sustainability(a

178、forward-looking orientation)As is the case with many family businesses,Barry Group began its sustainability journey unconsciously by establishing the business fundamentals,supporting local charities,looking after employees and making sure the company is a great place to work.In 2020,the companys tru

179、cks were as efficient as they could be from a fuel perspective,and the warehouse was equipped with modern,energy-efficient lighting.However,no sustainability-related improvements were being undertaken or measured in a formal way.The time had come to take a big step forward to make the companys susta

180、inability commitments more formal,but 2020 and 2021 were difficult years in the distribution business during the pandemic.It was all hands on deck to move stock and respond to urgent issues,and the sustainability strategy was put aside.2022 was the beginning of the companys reset.The family realized

181、 that it didnt have the internal expertise We can be influencers within our network,and we need to ensure that all our stakeholders take the sustainability journey along with us to make change happen.”Jim Barry Managing Director Barry GroupIrelands leading family run wholesale distribution company s

182、ervicing over 1,500customers nationwideTransitioning to a formal sustainability commitmentBarry Group IrelandEstablished:1955Family:BarryBusiness sector:Wholesale distribution of food and alcohol Current leaders generation:Second Generations active in the business:Second and thirdOperations:Over 1,5

183、00 customers in Ireland and abroadEmployees:Over 250Case Study1234567Going down the roadForewordNavigating a long and winding road Eight keys for unlocking the sustainability of your businessExecutive Summary Lessons from the road Why the sustainability journey is a once-in-a-lifetime opportunity Wh

184、y follow the family business route to sustainability?Connecting the past,present and future Putting sustainability on the strategic fast trackAcknowledgments and contactsGoing down the roadA road well-traveled How family businesses are guiding the sustainability journey|25to develop a formal sustain

185、ability strategy,and an external consultancy was engaged to help guide Barry Group down a more formal sustainability path.Changing by degrees exploring,learning and adapting The task was to develop a strategy that would set the company in the right direction and catch up with other companies in thei

186、r sector.Holly Barry,the companys Brand Strategist,describes the first step as a materiality assessment among Barrys employees,company directors,external suppliers and customers.One of the key learnings was that the older generation was interested in learning how to run the company sustainably,but y

187、ounger generations where much more vocal,and their points of view and behavior were influential at home and in the workplace.Managing Director Jim Barry has described how both the company and the family stepped back following the completion of the materiality assessment and began to explore what the

188、y wanted the company to look like in 2050 for the family,employees and customers and what the steps would be for getting there.“For us,its more than an environmental issue,”states Holly,“and we have to understand what we stand for.Packaging is a huge part of this for us as is sustainable sourcing of

189、 food.There is legislation emerging in the UK regarding the sale of goods with high levels of sugar and salt,for example.We dont have that yet in Ireland,but it will obviously have a huge impact when it does come.So,we have to look at how this and other changes may affect our business,and how we may

190、 need to adapt our sustainability strategy.”Measuring and validating business impact Barry Group has added a sustainability pillar to its long-term strategy and developed a three-year plan that has sustainability woven throughout every department.Holly emphasizes that“Were at the early stage of the

191、formal side of our strategy and we know we need to measure things.We have a lot of the boxes ticked,but not in a formal way.So,the initial steps have involved a lot of communication with our senior team about the journey were going on and making sure that all our people can continue to live our valu

192、es.”“We didnt have the infrastructure in place for measurement,and that has required a major investment,”says Holly,“and it has made us realize that we need better measurement across our entire business not just for our sustainability goals.That is becoming a much bigger project and making us re-eva

193、luate what modern measurement looks like.So,weve been really advancing where we are as a business and progressing our technology capabilities as yet another strategic pillar.”According to Holly,buyers are challenging all of their suppliers on where they stand from a sustainability point of view.As o

194、ne of the top issues that suppliers are talking about,Holly believes that sustainability will likely be a major part of the criteria for any significant contracts going forward,and theres an onus on business owners like Barry Group to make sure that their own suppliers(both small and large)are joini

195、ng them on the sustainability journey as well.Leveraging the power of manyBarry Groups strategy is based on the power of many by taking a collective approach in order to achieve a collective effect.“Were influencers within our network,”says Holly,“and we have to ensure that all our stakeholders take

196、 that journey with us to make change happen.”Jim adds that Barry Group has the opportunity to influence the behavior of its own customers as well.“Its already opening up conversations with customers who want to make sure that retailers are operating ethically.Were looking forward to including everyo

197、ne on this journey,and we think that there will be huge benefits in strengthening the relationships between suppliers,retailers and customers through a collective commitment to sustainability.”Going down the roadForewordNavigating a long and winding road Eight keys for unlocking the sustainability o

198、f your businessExecutive Summary Lessons from the road Why follow the family business route to sustainability?Connecting the past,present and future Putting sustainability on the strategic fast trackAcknowledgments and contactsWhy the sustainability journey is a once-in-a-lifetime opportunity Going

199、down the roadA road well-traveled How family businesses are guiding the sustainability journey|26GDES Adding value in providing energy to the worldEstablished in Spain in 1932,GDES is an international leader in energy services.With sustainability as its core purpose and primary objective,all of the

200、companys services and activities are designed to contribute to decarbonization,energy efficiency,digitalization and waste reduction through a circular economy.GDES CEO Hctor Dominguis is emphatic that“We face one of the toughest challenges that humanity has come across,with global warming as a major

201、 threat to our existence.Increasing our efforts towards sustainability is an absolute must.”The beginning of the GDES sustainability journeyGDES has been involved in the nuclear industry for over four decades,but its intense collaboration with the Spanish Nuclear Society in defending the key role of

202、 nuclear energy towards decarbonization and mitigation of global warming,raised the companys awareness of the urgent need to take action to prevent further global warming.According to Hctor,“This made us realize that our purpose as a family in business should not focus only on future generations of

203、our family,and we refocused our purpose to try to have a larger impact in the sustainability of the planet.”The companys first step was to gain the approval of its shareholders and board to adopt a new purpose Sustainability is embedded in our business strategy and our service offering.So the growth

204、 of our business will be a direct sign that we have helped to improve our clients sustainability performance and our own.”Hctor Dominguis Chief Executive Officer Grupo Dominguis Energy Services(GDES)Spains leading industrial services provider for all energy marketsLeaving a better company and world

205、to the next generationGrupo Dominguis Energy Services(GDES)SpainEstablished:1932Family:DominguisBusiness sector:Industrial services leader in energy marketsCurrent leaders generation:Third Operations:Spain,Portugal,Spain,Italy,France,Sweden,UK,USA,Mexico,Panama Employees:Over 1,000 worldwideCase Stu

206、dy1234567Going down the roadForewordNavigating a long and winding road Eight keys for unlocking the sustainability of your businessExecutive Summary Lessons from the road Why the sustainability journey is a once-in-a-lifetime opportunity Why follow the family business route to sustainability?Connect

207、ing the past,present and future Putting sustainability on the strategic fast trackAcknowledgments and contactsGoing down the roadA road well-traveled How family businesses are guiding the sustainability journey|27with a broader scope and transmit this to all the business leaders within the organizat

208、ion to direct their objectives,investments and strategies in the same direction.Specific business units were created to promote each of the companys core objectives of efficiency,digitalization and a circular economy,and the business plans and investments were adapted to develop these businesses.Lea

209、ving behind a better company and world for the next generationHctor adds that GDES is focused on the long term,as is the case in most family businesses.“In addition to developing three-and five-year business plans,we also plan for the generations that will follow,”he says,“and we work diligently to

210、leave them a better company.This is what has led us to make sustainability the centerpiece of our purpose.We want to leave a more sustainable business and a better planet for future generations by helping to improve the environment,the economy and society as a whole.”Achieving collective impactGDES

211、was already aware of and involved in sustainability efforts but making sustainability the sole purpose of the business was a significant transition point.Sustainability goals are now fully integrated with the companys business strategy,since the strategy is to develop services that contribute to the

212、 sustainability of the companys clients.In this way,GDES is helping to improve sustainability performance well beyond its own operations.This central purpose is embedded in GDESs business,which is designed to add value only by marketing sustainable services to its clients and in making the companys

213、central purpose more important than the purpose of growth.“Of course,”Hctor adds,“we hope that If we do things the right way,more clients will want to work with us,and we will be able to help even more industries to comply with and exceed their own sustainability objectives.”The company is now in th

214、e process of launching an Open Innovation Portal to attract ideas from other entrepreneurs,companies,scientists and investigators that share our purpose and help them achieve their own goals by supporting them financially,strategically or commercially in any way we can.For its own business,GDES has

215、adopted standard KPI measurements,along with specific indicators for each client to measure the success of the companys services in terms of energy consumption and waste reduction.Enabling the sustainability journeyTechnology and innovation are on the companys side with major developments in science

216、 and technology that can help to improve the planet.Digitalization and data analysis,for example,are the main sources of improved efficiency and waste reduction in production processes and are key enablers of the GDES sustainability journey.The enabling impact of technology also helps to explain why

217、 GDES has invested in an advanced data analysis company that specializes in process optimization,which will help to improve the companys own processes as well as those of its clients.Hctor Dominguis concludes that,“Urgent actions are needed in order for our children to enjoy a healthy planet,but our

218、 individual efforts will have a limited impact on true sustainability.That is why we have to stretch beyond ourselves and increase the collective impact we can have on others through our businesses.With sustainability embedded in our own business strategy as well as our service offering,the growth o

219、f our business will be a direct sign that we have helped to improve our own sustainability performance and that of our clients as well.”Going down the roadForewordNavigating a long and winding road Eight keys for unlocking the sustainability of your businessExecutive Summary Lessons from the road Wh

220、y follow the family business route to sustainability?Connecting the past,present and future Putting sustainability on the strategic fast trackAcknowledgments and contactsWhy the sustainability journey is a once-in-a-lifetime opportunity Going down the roadA road well-traveled How family businesses a

221、re guiding the sustainability journey|28Sustainability is extremely important to JSP,and the company is continually improving its manufacturing methods to ensure a safer,more sustainable future by making products that are substantially recyclable,and by concentrating on product lifecycle management

222、and educating its workforce.Early winsJSP has been on the sustainability journey for close to 15 years.As a manufacturer,the company recognized early that lean manufacturing and local manufacturing are far better for supply chain management,for suppliers and for customers.It wasnt difficult for JSP

223、to gain early wins in its manufacturing operations using the latest technologies and methods.And with its own R&D centers,the company was able to conduct lifecycle analyses of its products to extend their life cycles,leading to innovations in products that can be repaired with high-quality replaceab

224、le parts and potentially last a lifetime.As a family business,Marketing Director Sarah Baker says,“We can really innovate and make change happen quickly.We can also do a lot of work from a marketing and communications point-of-view to educate our end users on how to maintain our products and make th

225、em last longer.Its a huge subject.Everyone is learning from each other,and we can always improve.One of our core aims for the next five years is to be the most sustainable manufacturer of PPE.And thats exciting.”Weve always been very focused on the sustainability of our products and our operations b

226、ecause its the right thing to do.But weve also done it because it makes economic sense.”Mark Johnstone Chief Executive Officer and Sarah Baker,Marketing DirectorJSP Ltd.Europes leading independent manufacturer of above the neck personal protective equipment A focus on sustainable manufacturing JSP L

227、td.UKEstablished:1964Family:JohnstoneBusiness sector:Europes leading independent manufacturer of above the neck personal protective equipment Current leaders generation:SecondGenerations active in the business:SecondOperations:Manufacturing facilities in the UK,Germany,UAE,USA and China;additional o

228、ffice locations in France and Poland.Local sales representation in over 95 countriesEmployees:Over 400Case Study1234567Going down the roadForewordNavigating a long and winding road Eight keys for unlocking the sustainability of your businessExecutive Summary Lessons from the road Why the sustainabil

229、ity journey is a once-in-a-lifetime opportunity Why follow the family business route to sustainability?Connecting the past,present and future Putting sustainability on the strategic fast trackAcknowledgments and contactsGoing down the roadA road well-traveled How family businesses are guiding the su

230、stainability journey|29You have to collaborate to become sustainableThe company recognizes how critically important it is to involve many different people on the sustainability journey and has formed a sustainability team that is led by management.There are energy champions reporting to management i

231、n each factory,for example,who gather suggestions from the shop floor to reduce energy consumption.There are personnel focused on sustainable packaging design.The purchasing team source sustainably and locally where possible.JSP uses the supply chain sustainability school in UK and the EcoVadis plat

232、form in Europe for sharing information with distributors in UK and Europe and conducts SMETA audits of the companys factories to assess working conditions and how they could be improved.The company also collaborates with recycling companies to try to improve the end-of-life process for its products

233、for example is a founder member of the Hard Hat Recycling Scheme.Sustainability as a fundamental business strategyJSPs Chief Executive Mark Johnstone emphasizes that sustainability is fundamental to the companys overall business strategy.“Theres a lot more recognition of the need to improve all aspe

234、cts of sustainability,”he says,“and as a family business,were able to make decisions quickly.Governments are setting targets,but frankly,its the private sector that will make the difference in achieving them.Its up to companies like ours to do that.Weve always been very focused on the sustainability

235、 of our products and our operations because its the right thing to do.But weve also done it because it makes economic sense.Were a product manufacturer and the whole design of a product is crucial in terms of how recyclable it is.It has to be integrated throughout everything we do,and these days,tha

236、ts even more the case given the high cost of energy.We need to keep finding innovative ways to reduce our consumption along with innovations that improve our manufacturing processes.”Going down the roadForewordNavigating a long and winding road Eight keys for unlocking the sustainability of your bus

237、inessExecutive Summary Lessons from the road Why follow the family business route to sustainability?Connecting the past,present and future Putting sustainability on the strategic fast trackAcknowledgments and contactsWhy the sustainability journey is a once-in-a-lifetime opportunity Going down the r

238、oadA road well-traveled How family businesses are guiding the sustainability journey|30Wates Group,one of the leading privately owned construction,residential development and property services businesses in the UK,celebrated its 125th anniversary in 2022,and the company in the same year won the pres

239、tigious Queens Award for Enterprise in the Sustainable Development category for the third time,unique in the sector.The companys sustainability journey began in the mid-70s when Wates became involved with an eco-village development where the company built the most sustainable house that had ever bee

240、n constructed in the UK.The development was one of the earliest public recognitions of the importance of energy performance and the efficiency of housing.Since then,Wates has continued further along the sustainability journey.In the words of Wates Group Chairman Sir James Wates,“Being a force for go

241、od doesnt come automatically.Companies need clarity of purpose,grounded in social value,and a good steersman to help them deliver that value.Our business is construction,development and property services,so were very much in the built environment one of the biggest contributors to carbon in the worl

242、d.At the very least,we want to be a business thats responsible and responsive to that.”We have a very simple strategy to hand off a stronger,more sustainable business to the next generation.It doesnt mean just being a green business it needs to be economically sustainable,environmentally sustainable

243、 the sort of business that the next generation wants to carry on.”Sir James Wates CBE,ChairmanWates Group Good business,well done,as a force for goodWates Group UKEstablished:1897Family:WatesBusiness sector:Construction,residential development and property servicesCurrent leaders generation:FourthGe

244、nerations active in the business:Fourth and fifthEmployees:3,965 Case Study1234567One of the UKs leading privately owned construction,residential development and property services businessesGoing down the roadForewordNavigating a long and winding road Eight keys for unlocking the sustainability of y

245、our businessExecutive Summary Lessons from the road Why the sustainability journey is a once-in-a-lifetime opportunity Why follow the family business route to sustainability?Connecting the past,present and future Putting sustainability on the strategic fast trackAcknowledgments and contactsGoing dow

246、n the roadA road well-traveled How family businesses are guiding the sustainability journey|31Handing over a stronger business to each generationSir James emphasizes that“We have a very simple strategy to hand off a stronger,more sustainable business to the next generation.It doesnt mean just being

247、a green business it needs to be economically sustainable,environmentally sustainable the sort of business that the next generation wants to carry on.It also has to be sustainable in terms of the communities we engage with and our people.And it must be structured in a way that future generations are

248、able to own it in a successful way.So,there are a multitude of issues.”A significant focus of Wates strategy today is the recognition that diversity and inclusion are major contributors to sustainability.As Sir James explains,“If youre always fishing in the same pond,youre getting the same answer ev

249、ery time.So as a business,you always have to be looking across a pond thats larger than your natural pond and the more angles you can bring to the table,the better.”Turning sustainability into a competitive differentiatorThe Wates property services business conducts public sector social housing repa

250、irs and maintenance.As such,a major part of the companys service offering is related to how the company engages with its tenants and with the local community.Wates hires local staff.The company provides training on how to own properties by equipping their customers with the skills to maintain and re

251、pair their homes through apprenticeships and training programs.Watts Property Services explains that“We engage with the tenant community to support what theyre doing which,in turn,supports the local community overall.Training and teaching our customers are soft,high-value outcomes that give us a com

252、petitive advantage.Its something weve always done,but now weve codified it.Weve recognized that it is something that has always come naturally to us,and perhaps the time has come for us to be less quiet about it.”Disrupting traditional operating practices From a practical point of view,Wates establi

253、shed a sustainability committee of the board approximately six years ago.It is led by a family member to ensure that there continues to be high engagement on sustainability issues at the highest level.The company has committed to net-zero carbon in its operations by 2025,and to do that,it is investi

254、ng in the people who understand the issues in the business.“Alongside that,“says Sir James,“we have looked at our governance practices,which continue to shift and evolve.Were looking to achieve more strategic,high-level governance where we can set out the values of the family which are all about hav

255、ing a sustainable business in its broadest possible sense and translating those values throughout the business and with our stakeholders.Underneath it all,I believe that we have to disrupt and change the way weve been operating for the past 125 years.We have to do things differently,seize new initia

256、tives and be open minded to make our business sustainable for the next generation,and the next generation after that.”Going down the roadForewordNavigating a long and winding road Eight keys for unlocking the sustainability of your businessExecutive Summary Lessons from the road Why follow the famil

257、y business route to sustainability?Connecting the past,present and future Putting sustainability on the strategic fast trackAcknowledgments and contactsWhy the sustainability journey is a once-in-a-lifetime opportunity Going down the roadA road well-traveled How family businesses are guiding the sus

258、tainability journey|32CAREL Industries is one of the worlds leaders in control solutions for air conditioning,refrigeration and heating,as well as systems for humidification and evaporative cooling.Its products are designed to generate energy savings and reduce their environmental impact.Since its b

259、eginnings 50 years ago,the companys products have been created with sustainability at the forefront of the entire design,manufacturing and marketing processes and to achieve concrete and measurable objectives for the current and future generations.To support the companys strategic development,and re

260、cognizing that sustainability requires a medium-to long-term perspective,CAREL has put significant effort into designing a new remuneration policy with long-term incentive plans that are integrated with the companys ESG objectives.Beginning in 2021,CAREL embarked on a multi-year path of concrete act

261、ions in its first sustainability strategic plan,with the concept summarized as“Driven by the Future Sustainability in action”.The plan reflects CAREL s strategic vision on sustainability and is in line with the United Nations Sustainable Development Goals.We want to represent a model of excellence i

262、n the world by adopting a new approach to sustainability that is fully integrated into the business,into our corporate purpose and our companys culture code.This approach will enable us to respond to the challenges of a globalized world that is increasingly attentive to the impact that industrial pr

263、ocesses have on society and the environment.”Carlotta Rossi Luciani Executive DirectorCAREL Industries Making remuneration a catalyst for changeCAREL Industries ItalyEstablished:1973Family:LucianiBusiness sector:Designs,manufactures and sells high-tech components and solutions for high-energy effici

264、ency in controlling and regulating air conditioning systems and equipment.Current leaders generation:FirstGenerations active in the business:First and secondOperations:31 subsidiaries;13 production plants across the world;partners and distributors in 75 countriesCase Study1234567A world leader in co

265、ntrol solutions for air conditioning,refrigeration and heatingGoing down the roadForewordNavigating a long and winding road Eight keys for unlocking the sustainability of your businessExecutive Summary Lessons from the road Why the sustainability journey is a once-in-a-lifetime opportunity Why follo

266、w the family business route to sustainability?Connecting the past,present and future Putting sustainability on the strategic fast trackAcknowledgments and contactsGoing down the roadA road well-traveled How family businesses are guiding the sustainability journey|33With this approach,CAREL intends t

267、o fully integrate sustainability into the companys culture and the Groups vision,strategies and processes.The objectives of the plan will be updated annually based on the results that have been achieved to date and the addition of new ambitions.This strategic approach also provides a clear link betw

268、een pay and purpose.With remuneration aligned with CAREL s economic,social and environmental values and performance,it encourages a longer-term perspective and encourages the active involvement of employees who benefit directly from achieving the companys strategic objectives.Carlotta Rossi Luciani

269、remarks that“By realigning pay and purpose,CAREL has the opportunity to transform executive compensation from being a reputational risk factor to becoming a catalyst for change.Our remuneration policys objective is to go beyond the usual attract and retain the right people objective and to become a

270、catalyst for positive change in the organization and for all of its stakeholders.”Consistent measurement and transparent reportingCAREL is aware of the importance of communicating the companys sustainability commitment to all of its stakeholders and to measure and demonstrate consistency between wha

271、t it says and what it does.With ESG targets in place for the executive incentive program,disciplined disclosure practices play a vital role in providing transparent reporting on the progress that is being made.CAREL s goal is to give investors,customers,employees and a range of other stakeholders an

272、 objective and accessible articulation of the coordinated efforts and progress that the company is making on its sustainability journey.Measurable qualitative and quantitative reporting mechanisms for ESG objectives are not optional they are fundamental to the companys mission and purpose.Because th

273、ey are integrated with the business strategy,they must also be as measurable as the companys financial results.CAREL produces an annual non-financial report,which is an essential tool for managing and communicating the companys sustainability commitment.As Carlotta Rossi Luciani emphasizes,“This ens

274、ures that we are accountable for our choices,activities,results and use of resources in a given period,and it allows our stakeholders to know and formulate their own opinions about how the company is carrying out its activities and its institutional mission.”With this approach,CAREL is fully integra

275、ting sustainability throughout the companys culture and into the Groups vision,strategies and operating practices.Going down the roadForewordNavigating a long and winding road Eight keys for unlocking the sustainability of your businessExecutive Summary Lessons from the road Why follow the family bu

276、siness route to sustainability?Connecting the past,present and future Putting sustainability on the strategic fast trackAcknowledgments and contactsWhy the sustainability journey is a once-in-a-lifetime opportunity Going down the roadA road well-traveled How family businesses are guiding the sustain

277、ability journey|34Shepherd Neame is Britains oldest and largest independent family brewer,and the company has been on the sustainability journey since its earliest days.It sits on five acres in the middle of Faversham,the original site of artesian water that was discovered in the 16th century.Genera

278、tions of the Shepherd and Neame families have worked in the business,but just as importantly,so have generations of local families.A family and a business both driven by purpose and valuesFor five generations,the familys unrelenting sense of purpose to enrich the lives of their customers and communi

279、ties has been driven by a culture of shared values.Together,purpose and values have been the foundation of Shepherd Neames business model and its history of sustainability.That foundation continues to be unshakable.In Jonathan Neames view,the companys journey is enhanced by having both family and no

280、n-family members aligned to a singular purpose:enriching peoples lives.As he remarks,“A sustainability sea change is happening in the post-pandemic world.Younger employees definitely want to work for a business that has a strong sense of purpose.They need to believe they are working for a company th

281、at is authentic and relevant.And,yes,they expect to be paid a market rate,but their learning and development opportunities and how those will help to shape their future are whats crucially important.”Weve been on the sustainability journey since 1698!First and foremost,were a community business.The

282、brewery sits on five acres in the heart of Faversham in Kent the original site of artesian water that was discovered in the 16thcentury.Generations of the Shepherd and Neame families have worked here.But perhaps more importantly,so have generations of local families.”Jonathan Neame Chief ExecutiveSh

283、epherd Neame A living history of sustainabilityShepherd Neame Limited UKEstablished:1698Family:Shepherd and NeameBusiness sector:BreweryCurrent leaders generation:Fifth Generations active in the business:Fifth and sixth actively carrying on the familys values Operations:A portfolio of 300 pubs;218 h

284、otels and innsCase Study1234567The oldest and largest independent brewery in the UKGoing down the roadForewordNavigating a long and winding road Eight keys for unlocking the sustainability of your businessExecutive Summary Lessons from the road Why the sustainability journey is a once-in-a-lifetime

285、opportunity Why follow the family business route to sustainability?Connecting the past,present and future Putting sustainability on the strategic fast trackAcknowledgments and contactsGoing down the roadA road well-traveled How family businesses are guiding the sustainability journey|35The jam in th

286、e donut of FavershamShepherd Neames unmatched heritage in the heartland of Britain,combined with its long-term immersion in local communities,provides the company with unique insights,knowledge and trust.“Were part of the community,and that enables us to adapt and develop our business in parallel wi

287、th the reality of whats happening demographically and economically with our customers,employees and partners,”states Jonathan.The Shepherd Neame family is playing the long game.When times have been tough,theyve shown grit and resilience in sticking to the delivery of their customer and community pro

288、mises.And in good years,theyve capped their dividends with a view that taking too much could mean theyre under-investing in the business and putting their legacy at risk.Sustaining this shared value and sense of purpose has to be something that others can see and believe in at the operating level a

289、purpose thats both authentic and relevant.A good example is Shepherd Neames“Women in Brewing”initiative.“This is not a tick-the-diversity-box exercise,”remarks Jonathan.“Women were actually the pioneers of brewing in the early days.And thats embedded in the DNA of our family and throughout our busin

290、ess.But over the years,the number of female brewers has dwindled,and now were making a sustained effort to encourage women to come back.Its not only an important part of our history,but an important part of our future as well.”Sustaining a time-honored legacyIn addition to its brewing and hospitalit

291、y businesses,Shepherd Neame owns and invests in listed buildings because of the importance of preserving the history and a legacy.“We are dedicated to safeguarding the local brewing heritage for future generations,”says Jonathan,“and our investment in the upkeep of these buildings helps to preserve

292、time-honoured crafts,such as thatching,signwriting,stonemasonry,traditional carpentry and glass etching.”Environmental leadershipThe company also continues to be at the forefront of environmental sustainability within the brewing and hospitality industry itself.Eighty percent of the hops for the bee

293、r that the company produces are sourced locally,for example,and 100 percent of the barley is purchased in the UK even though its more expensive than ingredients sourced overseas.And all of the companys beers are brewed with the finest traditional ingredients including water sourced from the artesian

294、 well deep beneath the brewery.As well as pioneering sustainable brewing methods,the business is seeking to reduce its impact on the local environment and wider communities.Its Streamlined Energy&Carbon Report for the 2022 financial year demonstrates how measuring and reporting emissions data has en

295、couraged the business to target further inefficiencies and improve the companys overall environmental performance.For example,an application is currently being processed for the installation of 650 solar panels on the roof of the bottling hall,which is expected to produce an estimated 250 megawatt h

296、ours of energy per year and save approximately 60 tons of CO2 equivalent gross emissions.The direct benefits include lower energy costs,a better understanding of climate risks and allowing the business to be confident in its role as a proactive sustainability leader within the industry.Doing busines

297、s in a socially responsible wayShepherd Neame takes also takes its responsibility to customers and communities seriously and believes its pubs should provide a friendly,safe environment for customers,and the pubs are encouraged to be active participants in their communities.Jonathan adds,“We believe

298、 that well-run pubs,parental guidance,individual responsibility and suitable education are important to establish a sensible attitude to drinking,and we support a number of initiatives to help achieve our commitment to do business in a socially responsible manner.”Guided by good governanceWith stron

299、g board accountability and robust governance to underpin it,the collective responsibility to Shepherd Neames sustainable business strategy reinforces the trust that has been built within the community and among the companys customers.The board aims to ensure that the strategy and objectives are cons

300、istent with the companys culture:namely,an emphasis on serving its communities and preserving a long-term outlook;encouraging originality;and maintaining the companys reputation as a good partner and employer through sustained fair and ethical behavior.Going down the roadForewordNavigating a long an

301、d winding road Eight keys for unlocking the sustainability of your businessExecutive Summary Lessons from the road Why follow the family business route to sustainability?Connecting the past,present and future Putting sustainability on the strategic fast trackAcknowledgments and contactsWhy the susta

302、inability journey is a once-in-a-lifetime opportunity Going down the roadA road well-traveled How family businesses are guiding the sustainability journey|36Going down the roadForewordNavigating a long and winding road Eight keys for unlocking the sustainability of your businessExecutive Summary Les

303、sons from the road Why follow the family business route to sustainability?Connecting the past,present and future Putting sustainability on the strategic fast trackAcknowledgments and contactsWhy the sustainability journey is a once-in-a-lifetime opportunity Eight keys to unlock the sustainability of

304、 your businessEight keys for unlocking the sustainability of your businessA road well-traveled How family businesses are guiding the sustainability journey|371Highly structured governancepractices5Digitalization6Charismatic or transformational leadership style7Strong entrepreneurialmindset 8Forward-

305、looking orientation 2Active involvement of non-family members3Dispersed family ownership4Gender diversity on theboardGoing down the roadForewordNavigating a long and winding road Eight keys for unlocking the sustainability of your businessExecutive Summary Lessons from the road Why follow the family

306、 business route to sustainability?Connecting the past,present and future Putting sustainability on the strategic fast trackAcknowledgments and contactsWhy the sustainability journey is a once-in-a-lifetime opportunity Eight keys for unlocking the sustainability of your businessThe approach to sustai

307、nability can take many different routes,but here are eight success factors that family business leaders identified as the keys to unlocking a sustainable future for their businesses,their families and the world.Each factor is important in its own right,but its the combination that makes the real dif

308、ference in the sustainability performance of family businesses.Eight keys to sustainability performanceA road well-traveled How family businesses are guiding the sustainability journey|38Going down the roadForewordNavigating a long and winding road Eight keys for unlocking the sustainability of your

309、 businessExecutive Summary Lessons from the road Why follow the family business route to sustainability?Connecting the past,present and future Putting sustainability on the strategic fast trackAcknowledgments and contactsWhy the sustainability journey is a once-in-a-lifetime opportunity Highly struc

310、tured governance practicesChoosing the right governance practices in a family business is a critical ingredient for the companys long-term sustainability.While business governance is essential for effective business processes and establishing control mechanisms,family governance processes and struct

311、ures serve a different purpose.Not only do they help to support a strong communication environment among family members,but they also help to define who the family is as a group and what they want to achieve.The presence of boards and family councils,for example,generally reflects a strong governanc

312、e mindset,and companies with good governance structures and practices have typically made better progress in defining their sustainability goals and implementing their strategies.For Italys CAREL Industries,sustainability has not only become a structural component of the companys corporate strategy,

313、it is also an integral part of the boards responsibilities.It has required the company to define and adopt a governance structure for sustainability to ensure that it can be managed effectively and tightly integrated with the business and corporate culture.As CAREL Executive Director Carlotta Rossi

314、Luciani describes,“At the board level,I have specific responsibilities on sustainability in addition to what has been assigned to the Control Risk and Sustainability Committee.A multi-functional ESG team has also been created and is coordinated by the Chief Financial Officer.We believe this strong a

315、nd integrated governance system is a clear demonstration of CAREL s commitment to sustainability and provides us with a great opportunity to strengthen our competitiveness and attract the top talent we need to achieve sustainable success.”For family firms that are at the beginning of their sustainab

316、ility journeys,empowered and effective family governance is of utmost importance.Indeed,only by defining clear roles and responsibilities within the owning family,its structures and mechanisms will it be possible to foster communication and build consensus on who are we,where we want to go and what

317、we want to give to future generations and to the world.A well-defined and fully developed family governance system provides a strong foundation on which to build the sustainability agenda of family firms.Andrea Calabr STEP Project Global Consortium Academic Director Professor of Family Business&Entr

318、epreneurship IPAG Business School Eight keys for unlocking the sustainability of your business1Key insightNext-generation and independent board members are often the key initiators of a formal sustainability strategy.The board is accountable for the strategy but implementation is the role of all the

319、 key players within the family governance structure.Its the role of family and owners councils to consult with the board and provide their guidance.A road well-traveled How family businesses are guiding the sustainability journey|39Going down the roadForewordNavigating a long and winding road Eight

320、keys for unlocking the sustainability of your businessExecutive Summary Lessons from the road Why follow the family business route to sustainability?Connecting the past,present and future Putting sustainability on the strategic fast trackAcknowledgments and contactsWhy the sustainability journey is

321、a once-in-a-lifetime opportunity 6 https:/ Ward,J.L.,(2006).Perpetuating the Family Business.Marietta,GA:Family Enterprise Publishers.The degree of family involvement is often an area of particular interest for business families because of the impact it has on the sustainability performance and digi

322、talization of their businesses.The survey responses showed us that 99 percent of the CEOs have multiple roles in their family businesses.More than one-half are also the Chair of the Board,and approximately one-third have roles on the top management team.However,our previous research has shown6 that

323、there are proven benefits to having a good balance of family and external experiences and views represented on the board.Having both family and non-family members directly involved in the business makes a positive contribution to both the sustainability of the business and the digital agenda.Because

324、 the board is a critical intermediary between the owners and management,there is a danger that the family may not recognize emerging trends and opportunities for progressing the companys sustainability agenda7 if they arent actively capturing diverse views and input from outside the family.Family bu

325、sinesses that are dominated by family members on the Board and top management team may benefit from an external perspective to help drive improved sustainability performance and objective measurement.Eight keys for unlocking the sustainability of your businessCompanies with highly concentrated famil

326、y ownership(between 76percent and 100 percent)reported low ratings on the sustainability index.However,the level of digitalization was higher compared to companies where the family owns fewer than 25 percent of the shares.Keeping it all in the family might not be the best option in terms of sustaina

327、bility actions.This is especially the case if the business requires substantial restructuring and reconversion processes in order to update its current business model to meet new industry standards and stakeholders demands.In such cases,cooperating with external capital providers may help to revise

328、the trajectory and set the stage for reorganizing their business model based on the highest sustainability standards.Dispersed family ownership3A road well-traveled How family businesses are guiding the sustainability journey|40Active involvement of non-family members2Going down the roadForewordNavi

329、gating a long and winding road Eight keys for unlocking the sustainability of your businessExecutive Summary Lessons from the road Why follow the family business route to sustainability?Connecting the past,present and future Putting sustainability on the strategic fast trackAcknowledgments and conta

330、ctsWhy the sustainability journey is a once-in-a-lifetime opportunity Diversity is a notable contributing factor to sustainability performance,particularly in terms of the number of female board members.The family businesses in the survey that have at least three female board members reported positi

331、ve economic,environmental and social performance.The gender diversity factor has been identified in previous research and has shown that women directors have more diverse backgrounds and education and can add new thinking to the board.Having at least three women directors(which constitutes a“critica

332、l mass”)changes the boardroom dynamics substantially and increases the likelihood that womens voices and ideas are heard.8 This phenomenon is often a combination of critical mass and the“trickle-down”effect,9 where women in senior roles will advocate for other women,and their presence in a senior ro

333、le also increases the attractiveness of the company to other women who are aspiring for senior-level positions.8 Torchia,M.,Calabr,A.,&Huse,M.(2011).Women directors on corporate boards:From tokenism to critical mass.Journal of Business Ethics,102(2),299-317.9 Gould,A.,Kulik,C.,&Sardeshmukh,S.Trickle-down effect.The impact of female board members on executive gender diversity.Human Resource Managem