THE DECADE TO DELIVER - accenture.com

1 THE DECADE . TO DELIVER . A CALL TO. BUSINESS. ACTION. The United Nations Global Compact accenture Strategy CEO Study on Sustainability 2019. United Nations Global Compact accenture Strategy CEO STUDY ON. SUSTAINABILITY. 2019. We have to mobilize the THE DECADE TO DELIVER . private sector, it is 75% of the In the world's most comprehensive CEO Study to date global GDP. Moving forward, on the business contribution to the UN Sustainable Development Goals (also known as the Global Goals). collaboration with business - conducted by the United Nations Global Compact and accenture Strategy, more than 1,000 top executives and the key CEOs in the world across 21 industries and 99 countries candidly reflect on the opportunities and challenges to sustainability - is crucial when it comes to since the launch of the Global Goals. fighting climate change; but At the same time as they acknowledge the opportunity for competitive advantage through leading on environmental, also, to meet sustainable social and governance issues and report real progress, impressive innovation and impact; they recognize the business community could and should be making a far development goals, eradicate greater contribution to achieving a sustainable global economy and society by 2030.

2 They also point to the all extreme poverty by 2030, barriers that are preventing business from doing more and the enablers that would unlock the potential of the private and we're not on track on this. sector. Not content with the status quo, these CEOs from across industries, geographies and companies large and small Ant nio Guterres, are sending a clear and unequivocal call to their sectors Secretary-General, and peers to step up action and change market systems to drive a DECADE of delivery on the Global Goals. United Nations September 2019. UN GLOBAL COMPACT CEO STUDY 2019 | 3. ABOUT THE UNITED NATIONS GLOBAL COMPACT CONTENTS. As a special initiative of the UN Secretary-General, the United Nations Global Compact is a call to companies everywhere to align their operations and strategies with ten universal principles in the areas of human rights, labour, environment and anti-corruption. Launched in 2000, the mandate of the UN Global Compact is to guide and support the global business community in advancing UN INTRODUCTION 07.

3 Goals and values through responsible corporate practices. With more than 9,500 companies and 3,000 non-business signatories based in over 160 countries, and more than 60 Local Networks, STUDY PARTICIPANTS 08. it is the largest corporate sustainability initiative in the world. For more information, follow @globalcompact on social media and visit our website at EXECUTIVE SUMMARY 14. ABOUT accenture STRATEGY REALITY CHECK 20. accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, Business contribution to the Global Goals is not enough consulting, digital, technology and operations. Combining Special Focus: Fourth Industrial Revolution unmatched experience and specialized skills across more than (4IR) Technologies and the Global Goals 40 industries and all business functions underpinned by the world's largest delivery network accenture Strategy works at the intersection of business and technology to help clients BEYOND INCREMENTALISM 34.

4 Shape the future of their organisations and create sustainable value for their stakeholders. With more than 482,000 people A call for greater action from business serving clients in more than 120 countries, accenture drives and real systems change innovation to improve the way the world works and lives. Special Focus: CEOs on Gender Equality and Climate Action ABOUT THE CEO STUDY PROGRAM. CALL TO ACTION 1 45. The CEO Study program is an effort to enhance understanding and commitment between the United Nations and the private Raising threshold' ambition and leading sector. The program is an extensive review of the advancing systems transformation corporate sustainability movement, and the publications coalesce dominant views of CEOs, business leaders and UN Special Focus: CEOs on transforming the food system executives to track developments in sustainability. accenture and the UN Global Compact have established a solid and successful collaboration for this program, with the following CALL TO ACTION 2 63.

5 CEO Study publications to date: Collaborating to shape realistic, science-based solutions 2010: A New Era of Sustainability Special Focus: Responsible leadership performance analysis 2013: Architects of a Better World 2015: Special Edition: A Call to Climate Action CALL TO ACTION 3 73. 2016: A Window of Opportunity 2018: Special Edition: Transforming Partnerships for the SDGs Defining responsible leadership for 2030. ACKNOWLEDGMENTS 82. 4. INTRODUCTION. This year marks the fifth triennial United Nations Global than 1,000 CEOs through an online survey that was Compact accenture Strategy CEO Study, which in 2019 translated in 9 languages. In parallel, we further deduced is a joint publication with the UN Global Compact 2019 insights from more than 1,500 business executives Progress Report. As the latest milestone in over a DECADE of through the annual implementation survey. Second, we research, the 2019 CEO Study draws on insights from 1,000 conducted more than 100 in-depth one-to-one interviews CEOs across 21 industries and 99 countries, reflecting over with CEOs, chairpersons and presidents of UN Global 100 in-depth interviews, and a further 1,500-plus senior Compact companies around the world to understand the business leaders who responded to the UN Global Compact wider strategic context - from geopolitics to investment implementation survey.

6 In technologies to challenges and opportunities on sustainability - for business. As we approach 2030 and with ten years to achieve the Global Goals set out by governments with business and other In compiling this CEO Study, we are once again indebted to stakeholders, it is clear that we are not on track. At the same the UN Global Compact study leads Dan Thomas and Sean time, business leaders told us that they face an ever more Cruse. We also recognize the leadership of the accenture competitive and challenging business environment and set team, in particular, study leads Jessica Long and Jenna of pressures. From global trade uncertainties, to activist Trescott, lead author Apurv Gupta, as well as Akshay investors, to the pace and scale of the technology revolutions Raghunath. There have been many further contributions taking place in digital, biological and physical innovation, the from colleagues too numerous to mention here, but without intensity is unlikely to change in the DECADE ahead.

7 Whom our analysis would not be compelling in particular, Justin Keeble, Harry Morrison, Melissa Barrett, Mauricio Against that backdrop, CEOs told us that they are making Bermudez, Alexander Holst, Guanghai Li and Sundeep Singh. real progress, face growing expectations from consumers and employees, and are able to point to concrete innovative On behalf of the United Nations Global Compact and business models, partnerships and technologies that accenture Strategy, we would like to express our sincere show it is possible to both drive competitiveness and thanks to the CEOs and chairpersons, business leaders real measurable progress on environment, social and and other stakeholders who participated in the study. governance issues. The project team has endeavoured to understand and interpret their many ideas, reflections and case study But, in the most powerful self assessment yet seen globally examples in conducting the study and delivering from CEOs on the business contribution, this year's study this report.

8 Finds that CEOs believe that business is not doing enough and that in many cases their own companies and industries are not stepping up. Those same CEOs gave an equally stark call to action for business to step up or risk a lost DECADE ahead for the Global Goals without the urgent and required business contribution. In this report we share the feedback from CEOs on both their assessment of the challenge but also their suggestions for what needs to be done at all levels to get us back on track. Lise Kingo Peter Lacy The CEO Study follows two principal strands of research. Executive Director and CEO Senior Managing Director First, we conducted a quantitative assessment of more UN Global Compact accenture Strategy 6 UN GLOBAL COMPACT CEO STUDY 2019 | 7. ONE-TO-ONE INTERVIEWS. We would like to thank the following CEOs, chairpersons and presidents for their insights in shaping this study. While the views expressed do not necessarily represent the totality of opinions received from all contributors, their participation and guidance have been critical.

9 Jean-Paul Agon, Chairman Clara Arpa, CEO, Arpa EMC Douglas M. Baker, Jr. Chairman Werner Baumann, Chairman Jens Birgersson, Anders Danielsson, President Patrick Decker, President and Johan Dennelind, President Joseph Dharmabrata, CEO, Gaurav Dhawan, Executive and CEO, L'OR AL and CEO, Ecolab, Inc. of the Board of Management, President & CEO, and CEO, Skanska AB Chief Executive, Xylem and CEO, Telia Company PT Trans Javagas Pipeline Chairman, Phoenix Group Bayer AG ROCKWOOL International A/S. Gizeshwork Tessema Bizachew, Dominic Blakemore, Group Chief Jean-Fran ois van Boxmeer, Sigve Brekke, President & Carlos Brito, CEO, Marc Doyle, Chief Executive Wiebe Draijer, Chairman of the Joaquin Duato, Vice Chairman Bob Dudley, CEO, BP Julie-May Ellingson, Chief CEO, Gize PLC Executive, Compass Group PLC Chairman of the Executive CEO, Telenor Group Anheuser-Busch InBev Officer, DuPont Company Managing Board of Rabobank of the Executive Committee, Executive Officer, Cape Town Board and CEO, HEINEKEN Johnson & Johnson International Convention Centre Jesper Brodin, CEO, Ingka Group Martin Bruderm ller, Chairman Guenter Butschek, CEO and Hans Van Bylen, CEO, Henkel Giovanni Caforio, Chairman Jo o Paulo Ferreira, CEO, Jim Fitterling, Chief Laurent Freixe, Executive Antoine Fr rot, Chairman & Gary Goldberg, Chief Executive of the Board of Executive Directors, Managing Director.

10 And Chief Executive Officer, Natura Executive Officer, Dow Vice President, Chief Executive Chief Executive Officer, Veolia Officer, Newmont Goldcorp BASF SE and CTO Tata Motors Limited Bristol-Myers Squibb Officer, Zone Americas, Nestl . Steve Cahillane, Chairman and Patrick Chalhoub, Brian Chambers, President & Emanuel Chirico, Chairman Michael Clarke, Chief Executive Giles Gunesekera, Magnus Hall, President and CEO, Yoshihiro Hidaka, President, CEO Christine Holgate, Group Chief Frans van Houten, CEO &. CEO, Kellogg Company Chief Executive Officer, Chief Executive Officer, and Chief Executive Officer, Officer, Treasury Wine Estates Chief Executive Officer, Vattenfall and Representative Director, Executive Officer & Managing Chairman, Royal Philips Chalhoub Group Owens Corning PVH Corp. Global Impact Initiative Yamaha Motor Co., Ltd. Director, Australia Post Bruce Cleaver, CEO, Iain Conn, Group Chief Executive, Mark J.