 Hello and welcome everyone. My name is Zahra Engelizian. I'm the head of consumer industries and the future of consumption platform at the World Economic Forum. I would like to provide you with a brief context about the future of consumption platform and why we are hosting a session on resetting consumption for a sustainable future. It is the mission of our platform to advance responsible consumption for the benefit of business and society. To realize this mission, one of our key goals is to accelerate environmentally sustainable consumption. Why is this critical? At current consumption level, almost three planets would be required to sustain a population that is poised to reach 9.6 billion people in 2050. We also know that consumers, especially younger consumers, are becoming more aware of the issues associated with the health of our planet. Increasingly, they are seeking products that are produced and consumed sustainably. The key question is, how do we meet consumer demand to transition the consumer value chain to a state that is more responsible? By illuminating a fresh set of solutions and perspectives today, we are inviting key stakeholders to join forces through collaborative ecosystems to address the challenges that lie ahead. We are fortunate to have Tim Davy, the director general of the BBC, to moderate an esteemed panel. After 30 minutes, the livestream will end and we will transition to a deeper dive regarding the topic of sustainable consumption between the panelists and forum partners. Let's get started. Tim, over to you. Thank you, Zahra, and thank you for the introduction. And welcome, everybody. I appreciate everyone joining this session. I think that in some ways topics like positive transformation, sustainability, responsible consumerism are all now topics that are so at the mainstream and so much of a given the debate now moves into, for all of us as leaders, the how, not the what. And today, I think, is a really interesting chance for us to discuss that in the context of two industries. Actually, I know, well, having worked both Procter & Gamble and in the drinks business with PepsiCo, when you've got businesses that are well established, sustained actually brilliantly since the 1800s, but now facing these enormous times of change. And we've got an incredible panel to talk through for the next 30 minutes. And I'll be talking to them to understand this whole topic of how do we truly get to a consumption that is a pattern which is sustainable and responsibly managed. So we've got David Taylor, and we've got a real global panel. I should say David Taylor joining us from Cincinnati. David is chairman of the board, president and CEO of Procter & Gamble. Welcome, David. We've got Tak Ninami, who is joining us from Tokyo. Welcome, Tak. Good to see you. And you're president and CEO of Santori Holdings. And then Jennifer Morris, a world expert as CEO of the Nature Conservancy, and joining us from Washington, DC. So welcome to all of you. It's fantastic to have everyone linked up from various corners of the globe. Let me start, and we're going to have an open discussion on these topics before we go to the close session on Q&A. But let me just start, Jennifer, with you. And I said at the beginning in my words, this is now a question of how and getting on with it. What's your take in terms of this whole area of consumerism and how much we're using as a planet and the readiness of established businesses to transform their models? Great. Yeah, thanks so much, Tim. And thanks. Good morning. Good afternoon to everyone. It's great to be here with this incredible panel. So you're absolutely right. I mean, look, the pandemic has been an accelerator for so many things in our lives, right? Now we need it to really accelerate the transformation to more sustainable production and consumption. Because the first time really, I think, and certainly in our generation, we're actually recognizing the connections between human health and planetary health in really profound ways. And so I'm excited to talk about the ways that companies, governments, consumers can really lead on this very important topic of sustainable consumption. Look, as society rebuilds, there is a real sense of renewed opportunities for companies and governments to put investments and consumptions through a carbon neutral and biodiversity lens. And at the Nation Conservancy, that's what we're focused on. We're focused on ensuring that healthy oceans, freshwater and lands tackle the climate emergency and that we protect the most important lands and ocean systems and freshwater on which all life depends. And responsible production and consumption is absolutely critical to this work. Food systems in particular are critical for this. We're using, as Zara said in her intro, we're using so much of our planet up that we're not going to have anything left for our children. So right now we're seeing a real convergence of agriculture and environment for the first time not being seen as a zero-sum game, but really being able to connect the two in very profound ways. We actually know now that it doesn't have to be that we produce food that depletes the planet. We know now that it is possible to shift our food system in an effort to actually restore nature instead of just depleting it. And it's not just about environmental NGOs saying this. Consumers are saying this. Companies are saying this. The Nation Conservancy just did a recent survey with Edelman consulting to actually survey consumers and companies, beverage companies, all sorts of consumer goods companies. And the majority response was that it's not just about doing no harm. That people, businesses, and consumers want to see sustainability that actually requires doing good for the planet. Not just doing no harm. So it's not just about CSR or ESG. As you said, Tim, in your intro, the companies in the long term that will succeed are those that make this about DNA. And that's really what the Nation Conservancy is excited about working with these companies who recognize this and then are willing to do the hard work to make it happen on the ground. And I just want to celebrate the companies here, Procter & Gamble, Centauri, Walmart, so many syngentists, so many companies that are attending this today. They have taken the first bold step to set targets. And now the hard work comes in to actually work on the ground, working with governments to provide the right incentives, both financial and policy incentives that will require that change to happen. And that's what I look forward to discussing today. Thanks, Jennifer. Great. And coming to David, I think Jennifer mentioned a new DNA. It's easier when you're forming a new company, but when you've got something of the success and that DNA of Procter & Gamble. Talk to me a little bit about, David, the scale of change. We've talked about constructive disruption, which is, I like the term, is how much change you need to drive through the business to get this done? Good morning, good afternoon, good evening, everybody. And Tim, absolutely, we have to constructively disrupt almost everything we do. And those forms are important, because disruption can destroy what we find, what we need is a way to constructively create a new reality. Because you're right, we have to change the way we consume many of the products, frankly, that we make and many other companies make. There's lots of disruption in its accelerating, but in areas of sustainability, it means that we're looking to constructively disrupt everything we do. We start with our operations. We made a commitment to advance a portfolio of natural climate solutions that would generate a carbon benefit equal, the cumulative emissions through 2030. This will effectively make our manufacturing operations carbon neutral for the decade and deliver an estimated carbon benefit of 30 million tons. But it's more than that. We have to work with whether it's wonderful farms like the Nature Conservancy or Conservation International, World Wildlife Fund, or many others or other companies to advance a number of projects that protect, improve, and restore critical landscapes around the world. And we know we have to do more than that. We have to make products in a way that consume less energy, that have less waste, that consume less water. And we can do that. We can use our scientific capability to change the way we formulate our products. And it even goes to how consumers consume the products. If we even change our supply chain and our manufacturing operations, that's not enough. We have to help work with consumers that ultimately use our products to consume them in a way that has lower impact. And one of the best examples is when you wash dishes, 80% of a washing machine's energy consumption comes from getting the water. We can design formulas that can take the water temperature way down. We can save the vast majority. We're even working on a technology that eliminates water completely, reducing the need for plastic bottles, millions of gallons of water required to make pack and ship. All of these are examples where we're looking across our entire business model and what can we disrupt the way we do to help really reset consumption. Thank you, David. And I'm going to move to Tackett just like with the same question really, which is what we're hearing is across the board, which is this idea that this is a whole cell change of how we do business across all fronts as opposed to the kind of CSR or bits on the side of the business. It really becomes something fundamental to survival and re-engineering all of what we do and how we work. Tackett, from a perspective from Tokyo here, what's your sense of the scale of change you've got to undertake as an organization? Great to be here. Thank you very much for having me. First of all, we've been working on the sustainability things as well as the giving back to society almost for 122 years since we found it. And we know growing for good means a lot. And that is educated to every employee, spending a lot of resources. So that means our people know how important giving back to society means that gives a trust from society, that gives us a license to operate. But the key thing is how to take our know-how to those countries in carrying lots of issues like I'll say on countries, for example, those who need their resources. So from Tokyo, we have lots of businesses with the Asian countries, including China. David knows quite a lot. There are so many issues. So should we be only staying in a country where we have lots of solutions? How to take those solutions to other countries to solve problems? So that's the issue we are talking about now. That is a huge, huge change. Let me pick up with you guys a few of the kind of specific issues and I'll kind of touch on different things. But firstly, David, one of the obvious things, and I remember from my days, is the whole packaging question and just how far we can go to. We've looked at recyclability, more sustainable production. I mean, again, I'm really interested for this audience to hear the scale of changes you are feeling you need to make to make the business sustainable in this way. Talk to me a bit about packaging and how far we need to go. I think one we need to dramatically change what happens today. If you just take plastic, as an example, you mentioned that 70 percent of plastic is captured, but only 10 to 15 percent is recycled. In a world like that, and with the number of bottles and other plastic items being produced, we have to change it. But I think solutions can come. One of the most exciting ones that I see, and additionally, what we're doing is a company. And we, like many companies, have committed to having 100 percent of our packaging recyclable, reusable, but reducing the amount of virgin petroleum plastic we use by 50 percent over the next decade. But we need to do more than that, much more. And we're part of a coalition of over 50 companies that have come together across the entire value chain. It's part of the alliance to end plastic waste. We've all voluntarily agreed to put up a billion and a half dollars over the next five years in order to develop sustainable models. And the key right now we need is sustainable, scalable, circular solutions. And to do that, we've got everything from the people that make plastic to people that make plastic packaging. We're working with the plastic recyclers and others to develop pilot programs that can capture it, process it, and turn it into a second life. Because the issue is the waste. We want nothing going into oceans, nothing going into the environment. Capture it. We use it in a way. Where we can, we eliminate plastic and find better solutions. It may be paper solutions or others. But where we need plastic is the best alternative. Let's develop these scalable, circular solutions. And to me, I'm excited about the fact that we now have pilot programs going in Jumbrana, Indonesia, where you pay people to collect it, process it, and give it a second life. Because the issue many companies are making very bold claims on the use of post-consumer use resin. The issue is there's not enough of it available today. So we've got to find ways to capture it, process it, and reuse it in addition to working to eliminate it everywhere we can. Fascinating. And what you were saying about targets is really interesting as well. I think, Tak, I wouldn't mind just the other resource packaging that water in your business, huge in terms of another sustainability question globally. Talk to me a little bit about that as well, in terms of a lot of these businesses using a lot of, I mean, we talked about it earlier in terms of dishwashing and washing machines and water in that regard. But in your production, I mean, talk to me about that a little bit in terms of sustainability of supply. Is that something that's occupying your mind? Sure. As a beverage company, that relies on the blessing of natural water. We, Santori, is committed to ensuring the natural water is passed on to the next generation to come. To achieve that, we need to take a system-wide approach. As a company, our aim is to achieve net positive water usage by 2050. We are also engaging in broad activities that go beyond our organization to drive water conservation. For example, we partner with local communities and the universities to nurture healthy forests with the vast biodiversity, very rich, that can generate abundant groundwater, focusing on the areas where we have operation. In Japan, we have already reached out the goal to cultivate double the amount of the water we use in production. Our efforts have expanded beyond Japan to the United States and Europe. And we are now planning to go to the ASEAN countries as well. And another uniqueness I want to talk about is education for children. We are sending instructors to teach our children about how blessing the natural water is, as well as how natural water is generated for many years, going through many soils. And then they will teach adults the importance of natural water. So we are sending instructors to not only Japan, but also Vietnam, Japan, and ASEAN countries. Because that kind of children will become ambassadors in the future. So this is a unique approach, but it takes a lot of time. But they will be playing a key role to the world. And as well as they will work on ocean litter things as well. Thank you, Tim. I want to say this voice in water is to think about what's going on. Both our companies use a lot of water, but there's an exciting multi-stakeholder project called the 50-Liter Home. This is a good example. Many of the folks probably on this call are involved in this project because there's many companies that are working, as well as WEF and many others. And the ideas in the developed world, we on average use 500 liters a day of water. What if we could still have the same quality of life at 50 liters? Take 90% out, but still use the products you love. What would we need to do in terms of designing products differently? Capture water use from any one task? Clarify it? Come back? What do we need to use from an appliance standpoint? Think about if we could design it. This is the example of the kind of things that multi-stakeholders working with outstanding NGOs, with companies, and in some cases with governments, can develop solutions. Because if we can do that, we don't sacrifice quality of life, but we do develop sustainable circular solutions. Right. I think that's fascinating. And also you're working with competitors as well, which is an industry group, which is a different muscle to flex as well. Jennifer, I want to move to you, because it's really interesting listening to very senior CEOs here. And if you look at that, listen to the level of detail they have on this. This doesn't sound like CSR anymore. This sounds like listening to this conversation. This is the meaning of life, the level of targets, the level of detail. And I'm not trying to say everything's perfect, but I'll tell you one thing. This is a different conversation to even a year ago, two years ago, in terms of what it means to be a CEO of a consumer goods company. What's your sense of how people are doing, generally, the whole value chain, decarbonizing, the whole operation? It's a bit getting back to the question at the top, but where do you think the area is that we need to push the corporate world a bit harder on and where you'd like to see more progress? Yeah, great. Thanks for that question, Tim. So first of all, I agree that the efforts that have been made on plastic waste and water are phenomenal. We've still got a long way to go, but this sort of systems approach recognizing that it's not just about your own company and your own waste. It's about the consumer and how they're using their products as well as everything that's happening throughout a very complex supply chain. So that's to be plotted where I think that we need to do, quite frankly, a lot more work is around deforestation. And this is an area that's extremely difficult. There's been a lot of big targets that were made by companies many years ago that unfortunately have not been achieved. So if we could take that same approach, that systems approach that we're doing with waste and water and focus it in on deforestation, which has, of course, biodiversity benefits if we can eliminate it, but also, of course, has extreme climate benefits, 11% of global emissions are coming from the destruction of forests in particular, tropical forests. If we could actually take that same approach, we would really be winning on both biodiversity and on climate change, and of course, helping so many people throughout the world. So it's really important, I think, that we think about the fact that there are some moves being made. The UK, the EU are getting ready to introduce legislation that will stop imported deforestation into those jurisdictions. That's terrific. But at the end of the day, it's going to take hard work by companies like the ones here, as well as NGOs, partners, communities, indigenous groups, etc., to really figure out how do we change the incentives? How do we flip the script from destruction and making money from forests that are torn down, versus how do we ensure that we're bringing life back to land and restoring and bringing income back to those communities? That's where the hard work starts. And I applaud the efforts that have made so far, but we've still got a long way to go. That's really clear. And actually, by the way, I would add media companies like mine to the list, because we saw with programming like Blue Planet, which is one of our big natural history landmarks, a noticeable change in attitudes to plastics. I think there's a role in communication of these things that's very profound. I'm going to ask just Tak and David on one question around, I want to probe a little bit more of this working together across the industry. And then, as ever, it's unfair to do all this topic in half an hour, because we could be here some time. But then we'll begin to wrap up in some of the key takeouts. But it's fascinating to hear you all. Why don't we start, Tak, in terms of working with, I remember in my days of PepsiCo, I remember who the enemy were. Do you feel these are industry solutions, or are they sources of company competitive advantage? How's the balance that going to work? That's a great question, because this is, to be honest, the strategic move as well, not the CSR. Having said that, but it's not our turf for competition, as a matter of fact. And plus, affordability for consumers is very important. Cost matters, eventually, because not every consumer is green, consumer. So definitely to achieve a certain level of economy scale, definitely we have to work together with the industry partners as well as across the industry, taking hands with our computers even, so that we achieve the goal. Because we want to achieve the license to operate it together in this turf, definitely. So we work with the Koch in Japan, for example. See, this is the new age. That's good. David, I mean, you mentioned it a little bit, but clearly this point you mentioned on scale as well is so critical, isn't it? And that can be sometimes only achieved even however big the company is by working across the boundaries. How active is that in your sector, and how well is that working? Very active. And it's working well. And we recognize in certain areas, and good examples are the area of equality and the area of sustainability. We will not get solutions unless we work across the entire, not only the business community, but working with outstanding NGOs as well. These multi-stakeholders, the systems approach, as Jennifer says, I think is absolutely right. An example in the industry is the Consumer Goods Forum, which has hundreds of consumer products companies around the world are working together and have very active work going on in forestry, in water, in plastics, in many of these areas, food safety, many other areas. Because if we don't restore trust back for consumers, it's damaging for all. And we recognize consumers rightfully care more and more about the environment. They want sustainable solutions. They care about the way the world is going to be for their kids and their grandkids. And they expect companies to step up and invest in solutions. And this is one where this problem is this challenge is bigger than all of us. But collectively, we do believe we can address it, which is why we work with partners across whether it's the Alliance Team Plastic Waste, and it's the value chain of plastics or whether it's the Consumer Goods Forum or whether it's the World Economic Forum. These are multi-stakeholder reforms, which to me are the solution. And we all need to put our resources, our funds, our technological capabilities, as well as leadership in this if we're going to address it. Yeah. Very good. Jennifer, when you just respond, it's interesting, isn't it? I mean, to think about this in terms of just the scale of change required. I'm interested from your point of view as you help industry, you're in your own role as well. What do you think are the key barriers here? Because too many of these sessions are just looking at the problems. I find this session actually quite motivating to hear the scale of change going on some of the companies. But what are the real challenges here that you're seeing to make this happen at the speed it needs to? Yeah. I mean, first of all, I was just sitting here listening and going, this is such as you said, Tim, this is such a different approach where we have Pepsi and Coke and Centauri and competitors actually sitting down together to solve some of our biggest institutional global challenges. That's amazing. However, I will say that I think those are often the companies that are already doing the right things that are sitting down together, which is amazing. However, I think we need to really make sure that policy drives the laggards to change as well. Because at the end of the day, we'll just have a lot of great examples of volunteerism of those companies who get it. But if we don't have real policy changes that incentivize and incentivize good behavior and de-incentivize bad behavior and reduce harmful subsidies for things that we know are not good for the planet and for people, then we're never going to have real systemic change. So that's where I feel like the gaps are that we now need to continue with this amazing collective action by the best companies, but then drive change across the sectors through policy and financial incentives. Great. Very clear. And that's an intriguing other session actually in terms of where regulation stops and starts. We've only got three minutes left, so as I could go for some time here. So I'm going to give you all a minute just to leave us with some thoughts in terms of, for the next few years, what is the really big priority in this area? Where do you want to leave your businesses in three to five years' time in terms of this space? And just leave us with a thought. Tak, do you want to just close with something in terms of your vision for Santori in this space? First of all, we're talking about the partnership. Yes, partner. Q, technology. There are so many entrepreneurs in the Santori, Pepsi, Nidhiva, big guys. We want to work with the entrepreneurs with technology. Technology matters a lot. So guys from Silicon Valley and lots of places, they have an idea. We have to shake hands with them. Technology matters. Great. Thank you, Tak. David, any closing thoughts? Yeah, two things. One, it starts at home. We're responsible as a company to develop technologies and solutions that make a difference. We've got a great example, PureCycle, a technology that takes contaminated polypropylene and can turn it into a very high quality use that then has much greater value so it can be collected and processed. We're licensing that out so it can be scaled fast. On the other hand, in addition to doing our own work, as Jennifer said, we have to be part of the bigger solution, putting people and money, resources and money into these collective multi-stakeholder system solutions. It's one of the reasons why I've been involved in this Alliance 10 Plastic Waste. I'm now serving as the chair of that. And the Consumer Goods Forum, being part of organizations like that, working with the Nature Conservancy, Conservation International, World Wildlife Fund, WEF, and many others, absent doing both. Each company making a difference in their supply chain, their products, and the usage of their products, and being part of system solutions that address the broader problems, we won't address it. The good news is both of those are happening, and they're happening at a greater and greater scale faster and faster, which gives me confidence that collectively we can address this. Thank you, David. Jennifer, your final reflections on the, I think we've heard today a little bit of the scale of the reset. It's a challenge for all of us, but it was fascinating to hear what the panel said. What's your final thoughts for us in terms of a challenge, I think? Well, I guess my big challenge, first of all, would be that all the CEOs that are here need to talk to the political leaders to push this change, so that you're not the only ones that are sticking your neck out on sustainability. If we could switch and we could flip the script on subsidies, right now $500 billion a year is spent on farming, forestry, and fishery subsidies that degrade the planet. If we could change even a percentage of that, and who are they going to listen to? They'll listen to us, but they're really going to listen to the CEOs. So if you guys could work more proactively with policymakers to create the incentives for change at scale so that the entire sector will change with you, that for me would be a success. Thank you very much. You've given everyone their homework, so I enjoyed that. So very good. I wanted to thank everyone for firstly attending the session to thank David and Jennifer for sharing so openly some of the best practice. I found it really fascinating the practicalities of this, which was what I was hoping for.