A Road Well Traveled

A road
well-traveled
How family businesses are guiding the
sustainability journey
April 2023
kpmg.com/privateenterprise w ww.spgcfb.org
vele ow am n
Table of
contents
01 02
Forew ord
E xecutive
Summary
03
Why the
sus tainability
journey is a
04
once-in-a-lifetime
opportunity
Connecting the
past, present
and future
05
Navigating a long
and winding road
06
Going down the road
07
Eight keys for 08
unlocking the L es s ons
sustainability of from
your business
09
the road
Why follow
the family
business
route to
sustainability?
10
Putti ng
sustainability
on the strategic
fast track
11
Acknowledgments
and contacts
Foreword
In 1993, John Elkington coined the term ‘triple But no one can solve the world’s biggest Foreword
bottom line’. He described it as a system change, environmental and societal issues alone. It
and one that would lead to the transformation requires innovative thinking, bold ideas and unique
of capitalism. It encouraged companies to stop experiences from businesses and industries of
concentrating solely on their profits and to include every type and size.
goals in their business strategies for improving the Fortunately, for many family businesses, the road E xecutive
lives of people and the health of the planet. At the to sustainability is already one that is well-
time, the notion of ‘creating shared value’ was a S ummary
traveled. The fundamentals of shared value are
radical new way for companies to think about their familiar territory, and they’re woven throughout
business objecti ves and performance. the family capitalism business model. While they Why the
It also marked the beginning of the decline of may be taking a variety of routes and reaching new sustainability
shareholder capitalism and the rise of stakeholder milestones at different stages of their journeys, journey is a
once-in-a-lifetime
capitalism. The expectati on was that companies the progress they have made so far should be
opportunity
would serve society as a whole — not only their instructive and an inspiration for organizations of
owners and shareholders. every type.
C onnecting
Fast forward 30 years. This is why we believe that there is a once-in- the past,
Stakeholder capitalism has gone mainstream with a-lifetime opportunity for family businesses to present
the rise of the sustainability agenda. It is top-of- take a leadership role in guiding others on their and future
mind across the business world in every sector. The sustainability journeys.
principles of shared value are at its core, but there is
one important difference that’s rising quickly Navigating
in today’s environment — and that’s the need for a long and
urgent action. winding
The pandemic made sustainability even more
For many companies, their road
relevant. It increased the need for business sustainability actions are

families to protect their businesses by examining
the effi ciency of their operating practi ces and by
already beginning to have an Going down
the road
building deeper and stronger relationships with impact on their
their communiti es and their employees. In many
ways, sustainability is becoming a basis for a
businesses.Those that have B
license to operate. Corp or other types of Eight keys for
unlocking
Organizations of every type are being challenged certification for their social the
on the role they play and the impact they’re having sustainability
on the world around them. Many governments and environmental progress of your
are pushing companies to proceed with haste, are witnessing greater access business
offering incentives to encourage acti ons that are
climate-smart and contribute to long-term social to capital and better employee
Lessons from
equity and economic sustainability. the road
Customers are also demanding it, and they’re recruitment and retention.
ready to follow (and be loyal to) companies that are
able to demonstrate the positive impact that their Why follow
businesses are having on people and the planet. the family
business
route to
sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
A road well-traveled — How family businesses are guiding the sustainability journey | 3 and contacts
Foreword
Foreword
Following a proven path sustainability performance data from our previous

global survey of 2,439 family business leaders.
To explore the various routes to sustainability
We recognize that the road to sustainability is rarely E xecutive
that family businesses are taking, KP M G Private
a straight line. There are often twists and turns, small
Enterprise and the S T E P Project Global Consorti um
detours — even the occasional U-turns — along the S ummary
conducted personal interviews and led group
way. This may be a long and winding road, but we
discussions with family business leaders across
believe the unique characteristics and experiences Why the
the world. Their stories are insightful and practical
of family businesses offer an invaluable and practical sustainability
and are supported by a detailed analysis of the
guide for other leaders to follow on their own journey is a
sustainability journeys. once-in-a-lifetime
opportunity
C onnecting
the past,
present
and future
Navigating
Andrea Calabrò Tom McGinness
a long and
ST EP Project Global Consortium Global Leader
winding
Academic Director Family Business
road
Director, IPAG Entrepreneurship & KPMG Private Enterprise
Family Business Center KPMG International and
IPAG Business School Partner, KPMG in the UK
Going down
the road
Eight keys for

unlocking
the
sustainability
of your
business
Lessons from
the road
Why follow
the family
business
route to
sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
Executive
summary
Foreword
There is a widely adopted view of sustainability reporting requirements. It requires good data, credible
as ‘meeting the needs of the present without metrics and robust digital solutions, and it is making
compromising the ability of future generations to meet digitalization an important enabler to companies’
E xecutive
their own needs’. strategies as they transition to a more sustainable future.
This is already a familiar concept among family Those companies that are able to anticipate and meet S ummary
businesses, many of which operate with a sense of duty these rising environmental and societal expectations
to create and preserve a healthy, diverse and resilient are also more likely to improve their reputations, attract Why the
world for their children and their grandchildren. For many, and retain top talent and generate new business sustainability
investing in sustainability and operating in a sustainable opportunities. Sustainability is now a business journey is a
way is not only viewed as the ‘right thing to do’, but it’s imperative, as much as it is a stewardship one, and those once-in-a-lifetime
also becoming an essential engine of their companies’ companies that fail to adapt may struggle to compete in a opportunity
growth. new, low-carbon world.
Sustainability conversations are high on the agenda This is why family businesses may have a ‘first-mover C onnecting
the past,
across the world. Many of the discussions at the advantage’ on the path to sustainability.The commitment
present
2023 annual meeting of the World Economic Forum in to create value for all of their stakeholders has crossed a and future
Davos, for example, reflected a sense of urgency to multitude of generations. It is deeply embedded in
accelerate sustainability progress across industries and families’ values and woven throughout their business
geographies. For many, this is a response to models.
ever-increasing stakeholder scrutiny and regulatory Navigating
a long and
winding
road
Going down
the road
I truly believe that family businesses that
successfully engage with all their stakeholders on
this sustainability journey will not only survive but Eight keys for
prosper. Those that don’t step up are likely going to unlocking
be left behind. For me, the choice for companies the
may be precisely that binary! sustainability
of your
Everyone is at a different stage, and there is no right business
or wrong way forward. But I also truly believe that
family businesses have been living and prospering
Lessons from
based on core sustainability principles across the road
the generations, and there are many lessons that
everyone can take away from their experiences.
Tom McGinness Why follow

Global Leader, Family Business the family
KPMG Private Enterprise business
route to
KPMG International and
sustainability?
Partner, KPMG in the UK
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
Keeping the destination in mind
Some companies, especially smaller businesses,
Family
have concerns regarding the short-term economic
feasibility and costs of sustainability. Nevertheless,
many are beginning to take the first steps, with the rising
business expectations and encouragement of many different
stakeholders. Foreword
success The aspiration to leave a meaningful and lasting legacy

has always been present. Family businesses recognize
factors that adopting sustainability principles and practices is the

only way forward to create the world they want for future
E xecutive
generations.
In this environment family business leaders who S ummary
43 percent of 2,439 family business contributed to our research typically describe three
survey respondents reported interconnected goals for maintaining the sustainability
high levels of sustainability and Why the
of their businesses while also contributing to a more sustainability
digitalization based on eight key sustainable world: journey is a
success factors: once-in-a-lifetime
1. Maintaining the economic prosperity and long-term opportunity
social, environmental and reputational sustainability
1 Highly-structured governance
of their businesses for the benefit of current and C onnecting
future generations the past,
present
2. Integrating responsible environmental and social
2 Active non-family member and future
practices in their businesses
involvement
3. Taking a leadership role in supporting people
and planet initiatives outside the business via Navigating
philanthropic efforts such as charitable donations, a long and
winding
3 Dispersed family ownership
grants distributed through family foundations
road
and philanthropic investing in family offi ces.
4 Increased number of female board

members Going down
the road
Sustainability is a step-by-step journey, and it’s

important to have a clear idea of the overall direction Eight keys for
5 Digitalization as a sustainability
enabler
of travel that the business and the family wants to
follow. Institutions can play a critical role in making
unlocking
the
sustainability
the journey easier by helping to set appropriate
of your
standards for society; by ensuring that regulations
6 Charismatic or transformational
leadership
are not overly complex; and that businesses can act
independently without having to rely on potentially
business
costly expertise from outside their businesses. Lessons from

the road
Alejandro Escribá-Esteve Full
Professor of Management
7 Strong entrepreneurial mindset Universitat de València Why follow
the family
business
8 Forward-looking orientation 1 route to

sustainability?
Putting
sustainability
on the
strategic fast
track
1
STEP Project Global Consortium & KPMG Private Enterprise, “ The regenerative power of family businesses — transgenerational entrepreneurship”, 2022.
Acknow ledgments
Making sustainability business as Despite the additional costs and resources that may be
required, many family businesses have underscored
usual the importance of shifting the thinking away from
With these three goals in mind, there are many potential sustainability as an additional cost of doing business
routes along the sustainability journey to consider. The and towards an investment in the future. As with any
family business leaders who contributed their insights investment, they have emphasized how any investment
to this report provided a wealth of examples of the paths in sustainability must deliver impact and results and
Foreword
they’ve have chosen in making sustainability central make economic sense in order for business leaders to be
to what they now consider to be ‘business as usual’. able stand up and sustain their actions over the
While their routes may differ, all have shared a passion long term.
and a sense of urgency to put sustainability at the top Even though the sustainability journey often began with
of their agendas and seize new opportunities to further targeted plans to comply with regulations to reduce a E xecutive
strengthen their reputations and make their operations company’s carbon footprint or minimize waste, a major
more efficient. shift is already taking place towards a more strategic S ummary
Opportunities don’t come without challenges, however, approach that integrates sustainability objectives in the
and the primary concerns among family businesses are long-term business strategy. As one family business Why the
generally related to the increased cost of retrofitting their leader emphasized, it isn’t just about creating economic, sustainability
operations and the resources that are required to fulfill environmental or social value, but also about creating family journey is a
value for today’s generation and for those to come. once-in-a-lifetime
increasing regulatory and strategic requirements. New
opportunity
regulations often have more extensive data capabilities,
and sustainability reporting will likely require additional IT
resources and infrastructure for measuring, controlling C onnecting
and managing the environmental and social impact of the past,
companies’ efforts. present
and future
Managing sustainability in a regulatory
environment
There are many innovative ways of supporting Navigating
sustainability in family businesses. Even though a long and
they’re generally ahead of the game, government winding
For five generations, our family has operated road
regulations can be a burden. Too much bureaucracy
with a clear purpose: to enrich the lives of our
and red tape doesn’t actually support the
customers and our communities. That purpose has
sustainability goals of family businesses. I believe
been driven by a strong culture of shared values.
these businesses need to make their voices heard Going down
Together, our purpose and values have been the
by not only talking about their goals but the steps the road
foundation of our business model and a 325-year
they’re taking to achieve them.
history of sustainability. We are
uncompromising in making sure that foundation
Dr. Daniel Mitrenga Eight keys for
continues to be unshakable.
Executive Board Member unlocking
Jonathan Neame DIE FAMILIENUNTERNEHMER & DIE J U NG EN the
Chief Executive U N TE RN EHM ER — Representing the economic sustainability
Shepherd Neame — The oldest and largest and political interests of family businesses and of your
independent brewery in the UK young entrepreneurs business
Lessons from
the road
Why follow
the family
business
route to
sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
Seizing sustainability as a
competitive advantage
Key Some family business leaders have emphasized how

sustainability is already woven into the fabric of their
company’s culture, making it a key factor in attracting
takeaway and retaining top-performing employees. These are

companies that have recognized that today’s younger Foreword
generations are choosing to work only for companies
that operate ethically and take good care of people and
The value of a the planet. Increasingly, this is making many companies’
sustainability focus can sustainability performance an important factor in winning
the highly competitive war for talent. E xecutive
include:
Many family businesses have also recognized the S ummary
commercial imperative of demonstrating the tangible
Financial capital benefits due to impact of their sustainability priorities, which often make
increased customer attraction and Why the
the difference in their successful bids to win new work
sustainability
retention and to attract and retain loyal customers. journey is a
once-in-a-lifetime
opportunity
Social capital benefits by upholding a
reputation for making the world a
better place C onnecting
the past,
present
Human capital benefits from and future
attracting and retaining the best Until recently, many family businesses have had a
employees relatively informal approach to sustainability with
a focus on doing what’s right for their employees, Navigating
customers and communities. But now there’s a long and
Cost reductions from operating greater recognition that their sustainability actions winding
responsibly and using their own are actually potential differentiators with the power road
resources sustainably to create measurable competitive advantages.
Because many family businesses have operated

Access to limited sources of capital by Going down
as responsible, sustainable enterprises for
being more attractive to future business the road
generations, they have tended to be relatively
partners, investors and bankers quiet about their efforts and their impact. In
today’s environment, I strongly encourage family
businesses to be more vocal about what they are Eight keys for
unlocking
Risk mitigation through doing — and have been doing for many years (and
the
environmental and societal often decades). Their genuine impact and bold
sustainability
stewardship ambitions have been well-earned and should be of your
recognized. business
Alan Barr
National KPMG Private Enterprise Leader Lessons from
Partner, KPMG in South Africa the road
Why follow
the family
business
route to
sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
Foreword
E xecutive
S ummary
Why the
sustainability
journey is a
once-in-a-lifetime
opportunity
Whythe
C onnecting
the past,
present
and future
sustainability Navigating
journey is a a long and

winding
road
once-in-a-lifetime Going down
opportunity
the road
Eight keys for

unlocking
the
sustainability
of your
business
Lessons from
the road
Why follow
the family
business
route to
sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
The growing sustainability agenda
Macroeconomic 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 working

Family businesses are in a Foreword
conditions; increasing the access to safe food and position to guide others
water for people everywhere; mitigating human
rights concerns and removing social inequities — all along the path to
are revolutionizing and expanding the social and
environmental sustainability agenda.
sustainability.They have a E xecutive
Much like the digital revolution, the sustainability

first-mover advantage if S ummary
revolution promises to transform the way the world they choose to seize this
thinks and acts. But also, much like the digital revolution,
many companies are simply moving too slowly, taking leadership opportunity. Why the
sustainability
an incremental approach to sustainability at a time journey is a
when the world is demanding strong leadership and an once-in-a-lifetime
accelerated pace towards a more sustainable future. opportunity
As the originator of the ‘triple bottom line’ remarked in a

2018 Harvard Business Review article, “We need a C onnecting
the past,
new wave of triple bottom line innovation and
present
deployment. The time has come to either step up or and future
get out of the way to shift the sustainability needle.” 2
Family businesses have a rare opportunity in this

environment, to step things up and help to lead Navigating
sustainable and responsible business practices in a long and
the right direction. winding
road
2
“25 Years Ago, I Coined the Phrase ‘Triple Bottom Line’. Here’s Why It’s Time to Rethink It”, John Elkington. Harvard Business Review, June 25, 2018.
Going down
the road
Eight keys for

unlocking
the
sustainability
of your
business
Lessons from
the road
Why follow
the family
business
route to
sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
Operating with intent
The scope of the sustainability agenda is evolving rapidly,
and it’s important to keep its original intention in mind.
The United Nations World Commission on Environment Can any business survive without being
and Development, for example, defined sustainable ‘sustainable’? Certainly not family businesses
development as: ‘meeting the needs of the present whose underlying objectives implicitly seek to meet Foreword
without compromising the ability of future generations the needs of both the current generation and those
to meet their own needs’.3 Similarly, the University in the future.
of California, Los Angeles (UCLA) Sustainability
Committee’s charter4 describes sustainability as: ‘the In my experience, the responsibilities of ‘ownership’
integration of environmental, social equity, health and rest, not heavily, but proudly on the shoulders of
E xecutive
economic vitality in order to create thriving, healthy, family businesses. With changes in generational
diverse and resilient communities for this generation and control and influence, the identity of the family with S ummary
generations to come’. the business and a renewed sense of ‘purpose’
has required many to rethink how their business
Both of these definitions are relevant in today’s Why the
practices align with the family’s values. Increasingly,
sustainability environment. They share a fundamental sustainability
these are ‘shared’ values — not limited to the family
underlying theme that’s particularly relevant — and journey is a
and the business but to its broader stakeholders.
familiar — to family businesses because of their sense once-in-a-lifetime
It is central to their position and reputation in their opportunity
of duty to create and preserve a healthy, diverse and
local communities.
resilient world for their children and grandchildren.
The commitment to this ideal of generation-to-generation Robyn Langsford C onnecting
Partner, KPM G Family Business & Private Clients the past,
value creation is not new to family businesses. It’s
KPMG Australia present
deeply embedded in the family’s values and woven and future
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. Navigating
a long and
winding
road
Going down
the road
Eight keys for

unlocking
the
sustainability
of your
business
Lessons from
the road
Why follow
the family
business
route to
sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
Foreword
E xecutive
S ummary
Why the
sustainability
Following a well-tested road to strategy and provide evidence of what we’re doing, journey is a
where we’re going and how we’re going to get there once-in-a-lifetime
success was clearly an important and successful differentiator for opportunity
While sustainability is becoming one of the biggest winning the work.”
considerations for most businesses today, it has Increasingly, it’s becoming a differentiator for not only C onnecting
historically been a relatively unconscious effort among winning new business, but for attracting and keeping the past,
family businesses. Driven to get the fundamentals right present
top-performing employees as well in a highly competitive
for ‘how they do business’, their focus has been on and future
talent market.
operating ethically and efficiently, delivering customer
value, supporting community organizations and treating
employees well. Navigating
a long and
For businesses of all types, there is a strong case to be winding
made for embedding sustainability goals in the overall road
business strategy, and to achieve superior business Family businesses are values-based. Each family
results by doing the right things for all of the company’s does what’s authentic to them and what feels like
stakeholders. the right thing to do. So, for our business and our Going down
It reinforces the conviction that focusing on sustainability family, reducing carbon emissions is very important, the road
and strengthening the bottom line are not — and should but sustainability is so much broader than just
not be — mutually exclusive. In fact, that combination is a being green. We really want to make sure that we
commercial imperative for many companies, not only for can pass a healthy business down through future Eight keys for
family businesses. generations. And when we talk about the ‘next unlocking
generation’, we aren’t only concerned with the the
As Thomas Martin, Non-Executive Chairman of Arco future generations of our family, but about creating sustainability
has remarked, “On the one hand, sustainability is value in the next generation of the business, for of your
about continuously looking for ways to operate more our employees and their families, our customers, business
efficiently. But our sustainability strategy is also adding patients and communities as well.
to our bottom line by becoming a differentiated element
Lessons from
of our business. In a recent multi-million-pound tender, Rupa Patel
the road
for example, the sustainability score accounted for Executive Director
60 percent of the weighting for awarding the contract. Day Lewis — A 47-year-old, second-generation
In the past, price would have been the primary decision pharmacy community with 300 employees in the
UK and Europe Why follow
factor. But being able to present our sustainability
the family
business
route to
sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
Key Sustainability has always been the hallmark of
successful businesses. It has been front and center
takeaway among family businesses for a long time and for

various reasons, including business growth, helping
Foreword
their customers to thrive and gaining a competitive

Sustainability as a path to advantage. And with the increasing involvement
of next-generation family members, there is
success even greater impetus to continue investments E xecutive
on environmental, human and social capital
improvements. S ummary
Sustainability is transforming the way Brad Sprong

the world thinks and acts. It requires Partner Why the
strong leadership and an accelerated National Tax Leader sustainability
pace towards a more sustainable KPMG Private Enterprise journey is a
once-in-a-lifetime
future. KPMG in the U S
opportunity
Family businesses are well positioned to C onnecting

lead the path to sustainability because of the past,
their traditional sense of duty to create present
and preserve a healthy, diverse and and future
resilient world for their children and
grandchildren.
Navigating
a long and
Focusing on sustainability and winding
strengthening the bottom line are not road
mutually exclusive. Increasingly, they are
becoming competitive differentiators for
winning new business and attracting new Going down
customers and top-performing the road
employees.
Eight keys for

unlocking
the
sustainability
of your
business
Lessons from
the road
Why follow
the family
business
route to
sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
Foreword
E xecutive
S ummary
Why the
sustainability
journey is a
once-in-a-lifetime
opportunity
C onnecting
the past,
present
and future
Connecting the Navigating

a long and
past, present and winding

road
future Going down

the road
Eight keys for

unlocking
the
sustainability
of your
business
Lessons from
the road
Why follow
the family
business
route to
sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
Creating the world we want — for An integrated multi-dimensional
every generation business model
The pandemic has made sustainability even In the family business model, sustainability is a
more relevant. Simply ‘doing the right thing’ as a two-sided coin. The business strategy concentrates
responsible corporate citizen is no longer on decisions that have been made in the past to
enough. maintain the company’s competitiveness today, while Foreword
the sustainability strategy is focused on decisions
that are being made today for the company’s future
competiti veness.
The main purpose of family business sustainability is to E xecutive

In addition to developing three- and five-year strategically develop a business model that answers the
business plans, we also plan for the generations question: What are we going to do today to develop a S ummary
that will follow, and we work diligently to leave them better tomorrow?
a better company. This is what has led us to make And it’s the responsibility of family business leaders Why the
sustainability the centerpiece of our company’s to establish the practices, processes and structures sustainability
purpose. We want to leave a more sustainable for synchronizing their business and sustainability journey is a
business and a better planet for future generations once-in-a-lifetime
strategies in order to connect the past and the present
by helping to improve the environment, the opportunity
with the future.
economy and society as a whole. This is our central
purpose. It makes sustainability more important C onnecting
than the purpose of growth — and it is embedded in the past,
our business to add value by providing sustainable present
services to our clients. and future
Héctor Dominguis
Chief Executive Offi cer In the Sheikh Saoud Bin Khalid Bin Khalid Al- Navigating
Grupo Dominguis Energy Services — Qassimi Chair in Family Business at the American a long and
A 90-year-old, third-generation energy markets University of Sharjah, UAE, we mapped the winding
industrial services leader in Spain with over entrepreneurship and family business ecosystem in road
1,000 employees worldwide Sharjah. After analyzing the different initiatives and
actions
they have taken, we have identified four pillars of Going down
responsibility that are supporting the sustainability the road
strategies of family businesses.
Beneath each of these four pillars is their continuing

Eight keys for
commitment to local communities. By doing what
unlocking
is vital for today, family businesses are fulfilling their the
purpose to contribute to a better tomorrow. sustainability
of your
Rodrigo Basco business
ST EP Project Global Consortium Board Chair
Professor & Sheikh Saoud Bin Khalid bin Khalid
Al-Qassimi Chair in Family Business Lessons from
American University of Sharjah the road
Why follow
the family
business
route to
sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
Sharjah’s four pillars of
sustainability
Key
takeaway Foreword
Sustainability as a Corporate family

long-term business responsibility
E xecutive
strategy By anticipating the potential
complexity of the family in future S ummary
generations, sustainable family
Sustainability is essential for long- businesses are developing structures
term viability. Just ‘doing the Why the
and processes to govern the family sustainability
right thing’ as a responsible and business relationship. The aim is to
corporate citizen is no longer journey is a
develop family corporate governance once-in-a-lifetime
enough. structures that meet the family’s opportunity
future needs without jeopardizing
Business strategy concentrates on the economic, social and emotional
C onnecting
decisions that have been made in meaning of the family business. the past,
the past to maintain the company’s present
competitiveness today. Corporate spatial and future
responsibility
Sustainability strategy is focused
To preserve their local and regional Navigating
on decisions that are being
environment, sustainable family a long and
made today for the company’s businesses are committed to winding
future competitiveness. road
technology and innovation; taking
actions to improve their internal
One integrated strategy is how production processes; and supporting
sustainability can become ‘business external initiatives that contribute to Going down
as usual.’ local environmental improvements and the road
aid the natural ecosystem.
Corporate social Eight keys for

unlocking
responsibility the
sustainability
To care for society at large and its
of your
economic and social actors, sustainable business
family businesses actively participate in
philanthropic, ethical and economically
responsible initiatives to improve the Lessons from
the road
quality of life in local communities.
Why follow
CorporaCtoernpeotrwatoerknetwork the family
business
responsriebsiplitoinesibilities route to
sustainability?
To
cultivateToducuraltbivleatceodnunreacbtlieonc Putting
sustainability
sonnections on the
strategic fast
among ecoanmoomnigceacnodnsoomciiaclancdtosrso,cial track
actors,
sustainablesufsatmainlyablesifnaemsislyebsuasdionpetsses
Acknow ledgments
— Howa family
adopt
A road well-traveled stewardsabusinesses
hspi teawpare
aprd osahthe
guiding chipsustainability
wapti phrtohjourney
aecihr| 16 and contacts
with their
employees , su p p l ie r a n d c u st o m e rs
Foreword
E xecutive
S ummary
Why the
sustainability
journey is a
once-in-a-lifetime
opportunity
C onnecting
the past,
present
and future
Navigating a Navigating
a long and
long winding
road
and Going down

the road
winding Eight keys for
road
unlocking
the
sustainability
of your
business
Lessons from
the road
Why follow
the family
business
route to
sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
Being green isn’t good enough for subsequent generations. 5 The evidence is in the
long-term relationships that many family businesses
There is a green market revolution, and carbon have established with their customers, suppliers and
footprints are unwelcome on the sustainability path. employees, while also improving social equity and
As a consequence, environmental protection and economic development in the communiti es where
de-carbonization efforts are typically the first actions they operate. This represents the very definition of
that come to mind when companies begin to plan their shared value.
Foreword
sustainability journeys.
Even though family businesses are highly motivated
Many family businesses, however, have a system-wide to do the right thing, they may unintentionally exhibit
perspective on what sustainability means inside their behavior or take actions that aren’t sustainable. They
business as well as the impact it is having outside the may be unaware, for example, of major issues — such as
business. forced labor and human rights abuses in distant points E xecutive
along their supply chains that aren’t easily identifiable.
It’s how families in business typically think and act No business can have direct control over every S ummary
as they balance the need for achieving long-term environmental, health and social sustainability issue, so
financial success with the importance of ensuring that that makes the need for multiple stakeholders to work Why the
their purpose and values are reflected consistently in together a critical necessity. sustainability
their actions. Many have concluded that investing in journey is a
sustainability is essential as an engine for growth and for The road to sustainability will continue to widen and once-in-a-lifetime
product and service innovations that will contribute to the branch in new directions, and there will likely be a few opportunity
long-term survival and success of their businesses. necessary detours along the way. Everyone is looking
for a guide to help navigate this journey. And because it’s C onnecting
What road to follow? already a well-traveled path for many family businesses, the past,
their time-tested routes could well prove to be present
With their commitment to operate responsibly and invaluable. and future
preserve their reputations, family businesses are
generally unwilling to take non-sustainable actions that
may damage their reputation immediately as well as
Navigating
a long and
winding
road
Going down
the road
Eight keys for

unlocking
the
sustainability
of your
business
Lessons from
the road
Why follow
the family
business
route to
sustainability?
Putting
sustainability
on the
5
Dyer & Whetten (2006). "Family Firms and
strategic fast
Social Responsibility: Preliminary Evidence
track
from the S&P 500.” Entrepreneurship Theory
and Practice.
Acknow ledgments
Key When you think of sustainability, it isn’t only
takeaway about yourself. It’s also about your customers and

communities and where you want to be several
years from now — that is key for us. It isn’t just
Foreword
the family owners who need to be thinking about

The importance of this, but every stakeholder that’s involved in or
bringing others on the affected by our business and how they interact on
the sustainability journey. It’s what guides each E xecutive
journey generation in conducting business in a way that’s
good for everyone. And it’s the collaboration across S ummary
Help everyone in the business to our entire network that helps to power us through.
understand and believe why
sustainability is good for Temitope Samson Why the
sustainability
everyone. Executive Director
journey is a
BOVAS Group — A 48-year-old, second-generation
once-in-a-lifetime
one-stop energy solutions company in Nigeria opportunity
Talk to younger people — they have
different ways of looking at the
world. C onnecting
the past,
present
Encourage diverse perspectives on and future
trends that different stakeholders will
be looking for in the future.
Navigating
a long and
winding
Invite customers and suppliers to join road
you on the journey.
Going down
the road
Eight keys for

unlocking
the
sustainability
of your
business
Lessons from
the road
Why follow
the family
business
route to
sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
Foreword
E xecutive
S ummary
Why the
sustainability
journey is a
once-in-a-lifetime
opportunity
C onnecting
the past,
present
and future
Going down
Navigating
a long and
winding
road
the road Going down

the road
Eight keys for

unlocking
the
sustainability
of your
business
Lessons from
the road
Why follow
the family
business
route to
sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
Similar paths… different journeys risks and the goods and services they offer. Thus,
addressing these risks and openly communicating the
Often, the degree of urgency and focus on company’s progress in addressing them will increasingly
sustainability may be industry dependent. There be expected as part of a well-defined top management
are some industries, for example, that are facing growth strategy.
increasing pressures from their competitors and
customers, including a new generation of consumers, As is the case with most business practices, there is no
one-size-fits all approach to sustainability, and there are Foreword
employees and shareholders. Other companies have
not yet conducted materiality assessments to identify valuable lessons to be learned from every company’s
the relevant risks to their businesses and the priority journey. We’re pleased to have this opportunity to share
areas for action are not yet clear. some of these family business leaders’ stories and
insights from a variety of industry sectors.
Regardless of the industry, it is becoming clear that E xecutive
younger generations are focused on environmental and Some are beginning to take the first steps in their journey.
social issues, and they’re paying close attention to the For others, this is already a well-traveled road. Each S ummary
ways in which companies are managing the relevant has a unique story to tell of their experiences and what
sustainability means to their business and their family. Why the
sustainability
journey is a
once-in-a-lifetime
opportunity
C onnecting
the past,
The materiality assessment is, and will continue
present
to be, the starting point for identifying critical The most visible examples of family firms with
and future
risks around ESG, and in defining the relevant fully integrated sustainability strategies are those
actions that can be taken to mitigate them. This with B Corp certification (a private certification
requires assigning responsibility to individuals and of for-profit companies of their social and
environmental performance), many of whom have Navigating
governance committees, such as Sustainability
a proportion of their sales coming from export a long and
Directors and Audit Committees who can identify winding
the relevant internal controls that may be required markets. Often these companies were born as
road
to generate the information that will be the basis for sustainable enterprises, with sustainability issues
sustainability reporting. initially integrated with their value proposition,
and then throughout their entire process of value
Jesús Luna delivery. Going down
National KPMG Private Enterprise Leader the road
Partner For instance, tree-to-bar chocolate began as a fair
KPMG in Mexico trade certified product, paying fair prices to local
farmers and supporting them for delivering high- Eight keys for
quality raw materials. Several years later, these same unlocking
companies started to take care of CO 2 emissions the
in their production process, introducing recyclable sustainability
packaging and undertaking circular economy projects of your
business
as fully integrated sustainability businesses.
Jorge Andres Rodriguez Lessons from

Professor, ESPA E Graduate School of Management the road
E S P O L (Ecuador)
Why follow
the family
business
route to
sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
Explore unique stories from
family business leaders
Transitioning Foreword
A standout to a formal Good business,
sustainability sustainability well done, as a
leader commitment force for good
Thomas Martin, Jim Barry, Sir James Wates CB E, E xecutive
Non-Executive Managing Director Chairman
Chairman Barry Group Wates Group S ummary
Arco
1 2 5 Why the
sustainability
journey is a
once-in-a-lifetime
opportunity
C onnecting
the past,
present
and future
Navigating
a long and
winding
road
Going down
the road
Eight keys for

unlocking
the
sustainability
of your
business
6 3 4
7
Lessons from
the road
Making A focus on
A living remuneration a Leaving a better sustainable Why follow
history of catalyst for change company and manufacturing the family
sustainability world to the next Mark Johnstone, business
Carlotta Rossi Luciani, route to
Jonathan Neame, Executi ve Director generation Chief Executive Officer
and Sarah Baker, sustainability?
Chief Executi ve CAREL Industries Héctor Dominguis,
Shepherd Neame Marketing Director
Chief Executive Officer Putting
JSP Ltd.
Grupo Dominguis sustainability
Energy Services on the
(GDES) strategic fast
track
Acknow ledgments
A standout Case Study 1 2 3 4 5 6 7
sustainability leader
Foreword
Arco — UK
E xecutive
Established: 1887
S ummary
Family: Martin
Business sector: Manufacturing and distribution of
personal safety products Why the
sustainability
Current leader’s generation: Fifth journey is a
once-in-a-lifetime
opportunity
C onnecting
the past,
Arco has been awarded a gold medal for sustainability
present
after an assessment by EcoVadis, the world’s largest and future
and most trusted provider of business sustainability
ratings.
Thomas Martin, Arco’s Non-Executi ve Chairman, Navigating
describes how conducting business responsibly has a long and
We had been addressing a lot of always been part of what the company represents winding
matters that are now recognized and how it operates. However, the company recently road
as sustainability issues for many took steps to formalize its approach to sustainability by
creating a sub-committee of the board that’s charged
years, but we wanted to formalize with reviewing the company’s current sustainability Going down
it. If you link your sustainability and journey; what it could become; and how to close the the road
corporate strategies, put resources gap to get the company to where it wants to be.
behind it and report on it monthly He says that “ We like to think of ourselves as a
significant player in helping to shape the market in Eight keys for
you end up with a program that unlocking
terms of any safety products and services and we’ll
leads to a safe business, safe supply the training to make sure you go to work safely.
the
sustainability
people and a safe planet." Our philosophy on safety is that if you’re responsible, of your
you can pretty much do anything if you do it the right business
Thomas Martin way, with the right tools and the right experti se. It’s all
about enabling that to happen.”
Non-Executive Chairman Lessons from
Arco Arco’s experience has shown that because family the road
businesses are generally aligned as owners, partners
and leaders of the business, it makes it possible
to have conversations quickly and act on important Why follow
sustainability issues. the family
business
A step forward on the sustainability route to
sustainability?
journey: Formalizing the strategy
Putting
“Over the last 20 years,” says Thomas, “ w e have been sustainability
Experts in safety and the UK’s addressing a lot of matters that are now recognized as on the
leading supplier of personal sustainability issues, but we wanted to formalize strategic fast
safety products everything that we had been doing. That included track
the responsible actions we’ve taken regarding our
Acknow ledgments
supply chain management and our lobbying efforts Arco has aligned its sustainability strategy with
with governments on responsible supply chains. To selected UN Sustainable Development Goals. The
take a more strategic approach, we asked one of our company has invested approximately half a million
non-executi ve directors to set up a board committ ee pounds in virtual reality to reduce travel and create
to make sure that whatever we came up with wasn’t safe environments for its training courses. It has also
a bolt-on or a tick box activity or greenwashing, but made significant investments — along with Teesside
something that would actually come alive.” University — to create a potential game-changing (and
Foreword
globally patent-protected) technology for recycling
In Arco’s case, that required an investment of time
Personal Protective Equipment (PPE).
and money in determining the permanent full-time
executive resources that would be needed to integrate The company is now beginning to communicate its
sustainability throughout the company’s operations. methodology and approach to sustainability externally.
The final piece was the completion of a materiality E xecutive
Learning and knowledge-sharing was an integral part
audit to work out which elements of sustainability
of this stage of the journey, with the company’s non- S ummary
are important to Arco’s customers, the community
executive director and the general counsel enrolling
and other stakeholders. That audit was conducted
in an intensive course with delegates from all over the
independently, and it identified that the company is Why the
world who were at various stages in their sustainability
already meeti ng approximately 78 percent of its sustainability
journeys. Subsequently, their challenge was to join up
stakeholders’ needs. The question now is, how can the journey is a
everything that was being done across the business
company turn the missing 22 percent into a reality? once-in-a-lifetime
from a sustainability perspecti ve, and to deliver a clear opportunity
message to the business that these actions were not a “ We don’t yet have a full set of KPIs to measure
proprietorial whim. the impact of our strategy,” says Thomas, “but we
hope to have agreement on it by mid-year. We aim to C onnecting
Thomas notes that “ The outcome of this challenge the past,
set Science Based Targets (SBTi) which will inform
provided us with a very rich resource, which we hadn’t present
our path to Net Zero. It’s amazing — if you link your and future
really understood. After going through the exercise,
sustainability strategy with your corporate strategy,
we realized that we already had 584 sustainable
put resources behind it, and report on it monthly you
products out of a total of 20,000 in our portfolio.
end up with a program that leads to a safe business,
Circular economy models were already in play, and Navigating
safe people and a safe planet. This isn’t a ‘nice to have’,
we were able to identify what we were already doing a long and
it’s a ‘need to have’ and it’s totally worthwhile.”
in terms of decarbonization, waste management and winding
energy equalization. A s a result of this exercise, our road
business has become even better because it has Sustainability as a commercial imperative
increased the amount of collaboration taking place and the right thing to do
all across our business in an assortment of spin-off Going down
activities.” Focusing on sustainability and adding to the bottom the road
line are not mutually exclusive. Operationally, it
Sustainability as a competitive advantage improves efficiently. For Arco, it has also added to the
company’s bottom line by creating a differentiated Eight keys for
Allocating time, money and encouraging debate approach. In a recent multi-million pound tender, unlocking
throughout Arco also led to a series of better questi ons for example, the sustainability score accounted for the
60 percent of the weighti ng. sustainability
being asked of the sustainability project team.
of your
Thomas highlights how “ We were getti ng better “You expect it to be about price,” concludes Thomas, business
answers from Gen Z because these 19 and 20 year- “but sustainability was the defining factor in our ability
olds who are committi ng to our business want to win this bid. I can name six contracts in the past Lessons from
personal and career development, but they also four months where sustainability has been the key to the road
want to feel that they are aligning their efforts with a Arco winning the business, and that’s because we can
purpose that they can believe in. Frankly, we are all in provide evidence of what we’re doing, where we’re
a race for talent, and having a clear statement that this going and how we’re going to get there. A company’s
Why follow
is a core part of what our company is about is integral sustainability strategy and impact have out-and-out
the family
to our strategy. It has made us very attractive in getti ng commercial implications as well as being the right and business
the best talent to join us and that also gives us a responsible thing to do.” route to
competi ti ve advantage.” sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
Transitioning to a Case Study 1 2 3 4 5 6 7
formal sustainability
commitment
Foreword
Barry Group — Ireland

Established: 1955
Family: Barry
Business sector: Wholesale distribution of food E xecutive
and alcohol
S ummary
Current leader’s generation: Second
Generations active in the business:
Second and third Why the
Operations: Over 1,500 customers in Ireland sustainability
and abroad journey is a
once-in-a-lifetime
Employees: Over 250
opportunity
C onnecting
the past,
Barry Group is Ireland’s leading family-run wholesale
present
distribution company and it services over 1,500 customers and future
nationwide. Founded in 1955, the Barry Group has
successfully grown from a local business to a leading
wholesale distribution company, with over 250
Navigating
employees operating from its headquarters in Cork,
a long and
We can be influencers within our Ireland. winding
network, and we need to ensure road
that all our stakeholders take the The beginning — an unconscious
sustainability journey along with us commitment to sustainability
(a forward-looking orientation) Going down
to make change happen.” the road
As is the case with many family businesses, Barry

Jim Barry
Group began its sustainability journey unconsciously
Managing Director by establishing the business fundamentals, supporting Eight keys for
unlocking
local charities, looking after employees and making
Barry Group the
sure the company is a great place to work. sustainability
In 2020, the company’s trucks were as efficient as they of your
could be from a fuel perspecti ve, and the warehouse business
was equipped with modern, energy-effi cient lighting.
However, no sustainability-related improvements were Lessons from
being undertaken or measured in a formal way. the road
The time had come to take a big step forward to make

the company’s sustainability commitments more
formal, but 2020 and 2021 were difficult years in the Why follow
the family
distribution business during the pandemic. It was ‘all
business
Ireland’s leading family hands on deck’ to move stock and respond to urgent
route to
run wholesale distribution issues, and the sustainability strategy was put aside. sustainability?
company servicing over
2022 was the beginning of the company’s reset. The
1,500 customers Putting
family realized that it didn’t have the internal experti se
nationwide sustainability
on the
strategic fast
track
Acknow ledgments
to develop a formal sustainability strategy, and an measure things. We have a lot of the boxes ticked, but
external consultancy was engaged to help guide Barry not in a formal way. So, the initial steps have involved
Group down a more formal sustainability path. a lot of communicati on with our senior team about the
journey we’re going on and making sure that all our
Changing by degrees — exploring, learning people can conti nue to live our values.”
and adapting “ We didn’t have the infrastructure in place for
measurement, and that has required a major Foreword
The task was to develop a strategy that would set the investment,” says Holly, “and it has made us realize
company in the right direction and catch up with other that we need better measurement across our entire
companies in their sector. business not just for our sustainability goals. That
is becoming a much bigger project and making us
Holly Barry, the company’s Brand Strategist, describes re-evaluate what modern measurement looks like. E xecutive
the first step as a materiality assessment among So, we’ve been really advancing where we are as a
Barry’s employees, company directors, external business and progressing our technology capabilities S ummary
suppliers and customers. One of the key learnings was as yet another strategic pillar.”
that the older generation was interested in learning
According to Holly, buyers are challenging all of their Why the
how to run the company sustainably, but younger
sustainability
generations where much more vocal, and their points suppliers on where they stand from a sustainability
journey is a
of view and behavior were influential at home and in point of view. A s one of the top issues that suppliers
once-in-a-lifetime
the workplace. are talking about, Holly believes that sustainability will opportunity
likely be a major part of the criteria for any significant
Managing Director Jim Barry has described how both contracts going forward, and there’s an onus on
the company and the family stepped back following the business owners like Barry Group to make sure that C onnecting
completion of the materiality assessment and began to the past,
their own suppliers (both small and large) are joining
explore what they wanted the company to look like in present
them on the sustainability journey as well.
2050 for the family, employees and customers — and and future
what the steps would be for getti ng there.
Leveraging the ‘power of many’
“For us, it’s more than an environmental issue,”
Navigating
states Holly, “and we have to understand what we Barry Group’s strategy is based on the power of many a long and
stand for. Packaging is a huge part of this for us — as by ‘taking a collective approach in order to achieve winding
is sustainable sourcing of food. There is legislation a collective effect.’ “We’re infl uencers within our road
emerging in the UK regarding the sale of goods with network,” says Holly, “and we have to ensure that all
high levels of sugar and salt, for example. We don’t our stakeholders take that journey with us to make
have that yet in Ireland, but it will obviously have a change happen.” Going down
huge impact when it does come. So, we have to look the road
at how this and other changes may affect our business, Jim adds that Barry Group has the opportunity to
and how we may need to adapt our sustainability influence the behavior of its own customers as well.
strategy.” “It’s already opening up conversati ons with customers
who want to make sure that retailers are operating Eight keys for
ethically. We’re looking forward to including everyone unlocking
Measuring and validating business impact on this journey, and we think that there will be huge the
sustainability
benefits in strengthening the relationships between
Barry Group has added a sustainability pillar to its long- of your
suppliers, retailers and customers through a collective business
term strategy and developed a three-year plan that has commitment to sustainability.”
sustainability woven throughout every department.
Holly emphasizes that “We’re at the early stage of the Lessons from
formal side of our strategy and we know we need to the road
Why follow
the family
business
route to
sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
Leaving a better Case Study 1 2 3 4 5 6 7
company and world to

the next generation
Foreword
Grupo Dominguis Energy

Services (GDES) — Spain
Established: 1932 E xecutive
Family: Dominguis
Business sector: Industrial services leader in S ummary
energy markets
Current leader’s generation: Third Operations: Why the
Spain, Portugal, Spain, Italy, France, Sweden, sustainability
journey is a
UK, USA, Mexico, Panama once-in-a-lifetime
Employees: Over 1,000 worldwide opportunity
C onnecting
the past,
present
GDES— Adding value in providing energy and future
to the world
Established in Spain in 1932, G D E S is an international Navigating

a long and
Sustainability is embedded in our leader in energy services. With sustainability as
winding
its core purpose and primary objective, all of the
business strategy and our service company’s services and activities are designed to
road
offering. So the growth of our contribute to decarbonization, energy effi ciency,
business will be a direct sign that digitalization and waste reduction through a circular
economy. Going down
we have helped to improve our the road
clients’ sustainability performance G D E S C E O Héctor Dominguis is emphatic that “ We
face one of the toughest challenges that humanity
and our own.” has come across, with global warming as a major Eight keys for
threat to our existence. Increasing our efforts towards unlocking
Héctor Dominguis Chief sustainability is an absolute must.” the
Executive Officer Grupo sustainability
Dominguis Energy The beginning of the GDES sustainability of your
business
Services (GDES) journey
Lessons from
G D E S has been involved in the nuclear industry for
the road
over four decades, but its intense collaboration with
the Spanish Nuclear Society in defending the key
role of nuclear energy towards decarbonization and
mitigation of global warming, raised the company’s Why follow
the family
awareness of the urgent need to take action to prevent
business
further global warming.
route to
Spain’s leading industrial services
According to Héctor, “ This made us realize that our sustainability?
provider for all energy markets
purpose as a family in business should not focus only
on future generations of our family, and we refocused Putting
sustainability
our purpose to try to have a larger impact in the
on the
sustainability of the planet.”
strategic fast
The company’s first step was to gain the approval of track
its shareholders and board to adopt a new purpose
Acknow ledgments
with a broader scope and transmit this to all the even more industries to comply with and exceed their
business leaders within the organization to direct their own sustainability objectives.”
objectives, investments and strategies in the same
The company is now in the process of launching an
direction.
Open Innovation Portal to attract ideas from other
Specifi c business units were created to promote entrepreneurs, companies, scienti sts and investigators
each of the company’s core objectives of effi ciency, that share our purpose and help them achieve their
digitalization and a circular economy, and the business own goals by supporting them financially, strategically Foreword
plans and investments were adapted to develop these or commercially in any way we can.
businesses.
For its own business, G D E S has adopted standard
KPI measurements, along with specifi c indicators for
Leaving behind a better company — and each client to measure the s ucce ss of the company’s
world — for the next generation services in terms of energy consumpti on and waste E xecutive
reduction.
S ummary
Héctor adds that G D E S is focused on the long term,
as is the case in most family businesses. “In addition Enabling the sustainability journey
to developing three- and five-year business plans, Why the
sustainability
we also plan for the generations that will follow,” he Technology and innovation are on the company’s side journey is a
says, “and we work diligently to leave them a better with major developments in science and technology once-in-a-lifetime
company. This is what has led us to make sustainability that can help to improve the planet. Digitalization opportunity
the centerpiece of our purpose. We want to leave and data analysis, for example, are the main sources
a more sustainable business and a better planet of improved effi ciency and waste reduction in
for future generations by helping to improve the C onnecting
production processes and are key enablers of the the past,
environment, the economy and society as a G D E S sustainability journey. The enabling impact present
whole.” of technology also helps to explain why G D E S has and future
Achieving collective impact invested in an advanced data analysis company that
specializes in process optimization, which will help
G D E S was already aware of and involved in to improve the company’s own processes as well as
Navigating
sustainability efforts but making sustainability the sole those of its clients. a long and
purpose of the business was a significant transition Héctor Dominguis concludes that, “Urgent actions winding
point. Sustainability goals are now fully integrated with are needed in order for our children to enjoy a healthy road
the company’s business strategy, since the strategy is planet, but our individual efforts will have a limited
to develop services that contribute to the sustainability impact on true sustainability. That is why we have to
of the company’s clients. In this way, G D E S is helping stretch beyond ourselves and increase the collective Going down
to improve sustainability performance well beyond its impact we can have on others through our the road
own operations. businesses.
This central purpose is embedded in G DES’s business, With sustainability embedded in our own business
which is designed to add value only by marketing strategy as well as our service offering, the growth of Eight keys for
sustainable services to its clients and in making the unlocking
our business will be a direct sign that we have
company’s central purpose more important than the the
helped to improve our own sustainability sustainability
purpose of growth. “Of course,” Héctor adds, “ w e performance and that of our clients as well.” of your
hope that If we do things the right way, more clients business
will want to work with us, and we will be able to help
Lessons from
the road
Why follow
the family
business
route to
sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
A focus on sustainable Case Study 1 2 3 4 5 6 7
manufacturing
Foreword
JSP Ltd. — UK
Established: 1964
Family: Johnstone
Business sector: Europe’s leading independent E xecutive
manufacturer of ‘above the neck’ personal
S ummary
protective equipment
Current leader’s generation: Second
Generations active in the business: Second Why the
Operations: Manufacturing facilities in the sustainability
UK, Germany, UAE, USA and China; additional journey is a
once-in-a-lifetime
office locations in France and Poland. Local sales
opportunity
representation in over 95 countries
Employees: Over 400
C onnecting
the past,
present
and future
Sustainability 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 Navigating
a long and
We’ve always been very focused by concentrating on product lifecycle management and
winding
educating its workforce.
on the sustainability of our products road
and our operations because it’s the Early wins
right thing to do. But we’ve also
Going down
done it because it makes economic J S P has been on the sustainability journey for close to the road
15 years. As a manufacturer, the company recognized
sense.”
early that lean manufacturing and local manufacturing
are far better for supply chain management, for
Mark Johnstone Eight keys for
suppliers and for customers. It wasn’t difficult for J S P
unlocking
Chief Executive Officer and Sarah to gain early wins in its manufacturing operations the
Baker, Marketing Director using the latest technologies and methods. And sustainability
with its own R&D centers, the company was able to of your
J S P Ltd. conduct lifecycle analyses of its products to extend business
their life cycles, leading to innovations in products that
can be repaired with high-quality replaceable parts and Lessons from
potentially last a lifetime. the road
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 Why follow
a marketing and communicati ons point-of-view the family
to educate our end users on how to maintain our business
Europe’s leading independent route to
manufacturer of ’above the products and make them last longer. It’s a huge
subject. Everyone is learning from each other, and we sustainability?
neck‘ personal protective
equipment can always improve. One of our core aims for the next
Putting
five years is to be the most sustainable manufacturer
sustainability
of P PE. And that’s exciting.” on the
strategic fast
track
Acknow ledgments
You have to collaborate to become Sustainability as a fundamental business
sustainable strategy
The company recognizes how critically important it is J SP ’s Chief Executi ve Mark Johnstone emphasizes
to involve many different people on the sustainability that sustainability is fundamental to the company’s
journey and has formed a sustainability team that overall business strategy. “ There’s a lot more
is led by management. There are energy champions recognition of the need to improve all aspects of Foreword
reporting to management in each factory, for example, sustainability,” he says, “and as a family business,
who gather suggesti ons from the shop floor to reduce we’re able to make decisions quickly. Governments are
energy consumpti on. There are personnel focused on setti ng targets, but frankly, it’s the private sector that
sustainable packaging design. The purchasing team will make the difference in achieving them. It’s up to
source sustainably and locally where possible. companies like ours to do that. E xecutive
J S P uses the supply chain sustainability school in We’ve always been very focused on the sustainability S ummary
UK and the EcoVadis platform in Europe for sharing of our products and our operations because it’s the
information with distributors in UK and Europe and right thing to do. But we’ve also done it because it
Why the
conducts SM E TA audits of the company’s factories makes economic sense. We’re a product manufacturer
sustainability
to as sess working conditions and how they could be and the whole design of a product is crucial in journey is a
improved. terms of how recyclable it is. It has to be integrated once-in-a-lifetime
throughout everything we do, and these days, that’s opportunity
The company also collaborates with recycling
even more the case given the high cost of energy. We
companies to try to improve the end-of-life process for
need to keep finding innovative ways to reduce our
its products — for example is a founder member of the C onnecting
consumpti on along with innovations that improve our
Hard Hat Recycling Scheme. the past,
manufacturing processes.” present
and future
Navigating
a long and
winding
road
Going down
the road
Eight keys for

unlocking
the
sustainability
of your
business
Lessons from
the road
Why follow
the family
business
route to
sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
Good business, well Case Study 1 2 3 4 5 6 7
done, as a force for

good
Foreword
Wates Group — UK
Established: 1897
Family: Wates E xecutive
Business sector: Construction, residential
S ummary
development and property services
Current leader’s generation: Fourth Why the
Generations active in the business: Fourth and sustainability
fifth journey is a
once-in-a-lifetime
Employees: 3,965 opportunity
C onnecting
the past,
present
Wates Group, one of the leading privately owned and future
construction, residential development and property
services businesses in the UK, celebrated its 125 th
anniversary in 2022, and the company in the same year
Navigating
won the prestigious Queen’s Award for Enterprise in a long and
We have a very simple strategy the Sustainable Development category for the third winding
— to hand off a stronger, more time, unique in the sector. road
sustainable business to the next The company’s sustainability journey began in the
generation. It doesn’t mean just mid-‘70s when Wates became involved with an
eco-village development where the company built Going down
being a ‘green’ business — it needs the most sustainable house that had ever been the road
to be economically sustainable, constructed in the UK. The development was one of
environmentally sustainable — the earliest public recognitions of the importance of
energy performance and the effi ciency of housing. Eight keys for
the sort of business that the next Since then, Wates has continued further along the unlocking
generation wants to carry on.” sustainability journey. the
sustainability
In the words of Wates Group Chairman Sir J ame s of your
Sir James Wates CBE, Wates, “Being a force for good doesn’t come business
Chairman automatically. Companies need clarity of purpose,
Wates Group grounded in social value, and a good steersman to help
Lessons from
them deliver that value. Our business is construction, the road
development and property services, so we’re very
much in the built environment — one of the biggest
contributors to carbon in the world. At the very least,
Why follow
we want to be a business that’s responsible and
the family
One of the UK’s leading privately responsive to that.” business
owned construction, residential route to
development and property sustainability?
services businesses
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
Handing over a stronger business to each doing — which, in turn, supports the local community
overall. Training and teaching our customers are
generation ‘soft’, high-value outcomes that give us a competi ti ve
advantage. It’s something we’ve always done, but now
Sir James emphasizes that “We have a very simple we’ve codified it. We’ve recognized that it is something
strategy — to hand off a stronger, more sustainable that has always come naturally to us, and perhaps the
business to the next generation. It doesn’t mean just ti me has come for us to be less quiet about it.”
Foreword
being a ‘green’ business — it needs to be economically
sustainable, environmentally sustainable — the sort of Disrupting traditional operating practices
business that the next generation wants to carry on. It
also has to be sustainable in terms of the communiti es
we engage with and our people. And it must be From a practical point of view, Wates established a
sustainability committee of the board approximately E xecutive
structured in a way that future generations are able to
own it in a successful way. So, there are a multitude of six years ago. It is led by a family member to ensure
that there conti nues to be high engagement on S ummary
issues.”
sustainability issues at the highest level. The company
A significant focus of Wates’ strategy today is the has committed to net-zero carbon in its operations by Why the
recognition that diversity and inclusion are major 2025, and to do that, it is investing in the people who sustainability
contributors to sustainability. A s Sir J ame s explains, understand the issues in the business. journey is a
“If you’re always fishing in the same pond, you’re once-in-a-lifetime
getti ng the same answer every time. S o as a business, “Alongside that, “says Sir James, “ w e have looked at opportunity
you always have to be looking across a pond that’s our governance practi ces, which conti nue to shift and
larger than your natural pond — and the more angles evolve. We’re looking to achieve more strategic, high-
C onnecting
you can bring to the table, the better.” level governance where we can set out the values of the past,
the family — which are all about having a sustainable present
Turning sustainability into a competitive business in its broadest possible se nse — and and future
differentiator translating those values throughout the business and
with our stakeholders.
The Wates property services business conducts public Underneath it all, I believe that we have to disrupt and Navigating
sector social housing repairs and maintenance. As change the way we’ve been operating for the past a long and
such, a major part of the company’s service offering is 125 years. We have to do things differently, seize new winding
related to how the company engages with its tenants initiatives and be open minded to make our business road
and with the local community. sustainable for the next generation, and the next
Wates hires local staff. The company provides generation after that.”
Going down
training on how to ‘own’ properties by equipping their
the road
customers with the skills to maintain and repair their
homes through apprenticeships and training programs.
Watts Property Services explains that “ We engage
with the tenant community to support what they’re Eight keys for
unlocking
the
sustainability
of your
business
Lessons from
the road
Why follow
the family
business
route to
sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
Making Case Study 1 2 3 4 5 6 7
remuneration a
catalyst for change
Foreword
CAREL Industries — Italy

Established: 1973
Family: Luciani E xecutive
Business sector: Designs, manufactures and
sells high-tech components and solutions for S ummary
high-energy efficiency in controlling and regulating
air conditioning systems and equipment. Why the
Current leader’s generation: First Generations sustainability
active in the business: First and second journey is a
once-in-a-lifetime
Operations: 31 subsidiaries; 13 production plants opportunity
across the world; partners and distributors in
75 countries
C onnecting
the past,
present
and future
C A R E L Industries is one of the world’s leaders in
control solutions for air conditioning, refrigeration
and heating, as well as systems for humidification
Navigating
and evaporative cooling. Its products are designed
a long and
We want to represent a model of to generate energy savings and reduce their winding
excellence in the world by adopting environmental impact. road
a new approach to sustainability that Since its beginnings 50 years ago, the company’s
products have been created with sustainability at
is fully integrated into the business, the forefront of the entire design, manufacturing and Going down
into our corporate purpose and our marketing processes and to achieve concrete and the road
company’s culture code.This approach measurable objectives for the current and future
generations.
will enable us to respond to the
To support the company’s strategic development, and Eight keys for
challenges of a globalized world that is unlocking
recognizing that sustainability requires a medium-to
increasingly attentive to the impact that long-term perspecti ve, C A R E L has put significant
the
sustainability
industrial processes have on society effort into designing a new remuneration policy with of your
and the environment.” long-term incentive plans that are integrated with business
the company’s E S G objectives. Beginning in 2021,
Carlotta Rossi Luciani C A R E L embarked on a multi-year path of concrete
Lessons from
actions in its first sustainability strategic plan, with
Executive Director the road
the concept summarized as “Driven by the Future —
C A R E L Industries Sustainability in action”. The plan reflects CAREL’s
strategic vision on sustainability and is in line with the
United Nations Sustainable Development Goals. Why follow
the family
business
A world leader in control solutions route to
for air conditioning, refrigeration sustainability?
and heating
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
With this approach, C A R E L intends to fully integrate With E S G targets in place for the executive incentive
sustainability into the company’s culture and the program, disciplined disclosure practi ces play a
Group’s vision, strategies and processes. The vital role in providing transparent reporting on the
objectives of the plan will be updated annually based progress that is being made. CAREL’s goal is to give
on the results that have been achieved to date and the investors, customers, employees and a range of other
addition of new ambitions. stakeholders an objective and accessible articulation
of the coordinated efforts and progress that the
This strategic approach also provides a clear link Foreword
company is making on its sustainability journey.
between pay and purpose. With remuneration aligned
with CAREL’s economic, social and environmental Measurable qualitative and quantitative reporting
values and performance, it encourages a longer-term mechanisms for E S G objectives are not optional —
perspecti ve and encourages the active involvement of they are fundamental to the company's mission
employees who benefit directly from achieving the and purpose. Because they are integrated with the E xecutive
company’s strategic objectives. business strategy, they must also be as measurable
as the company’s financial results. C A R E L produces S ummary
Carlotta Rossi Luciani remarks that “ By realigning pay
an annual non-financial report, which is an essenti al
and purpose, C A R E L has the opportunity to transform
tool for managing and communicati ng the company’s Why the
executi ve compensati on from being a reputational
sustainability commitment. A s Carlotta Rossi Luciani sustainability
risk factor to becoming a catalyst for change. Our
emphasizes, “ This ensures that we are accountable journey is a
remuneration policy’s objective is to go beyond the
for our choices, activities, results and use of resources once-in-a-lifetime
usual ‘attract and retain the right people’ objective opportunity
in a given period, and it allows our stakeholders to
and to become a catalyst for positive change in the
know and formulate their own opinions about how
organization and for all of its stakeholders.”
the company is carrying out its activities and its C onnecting
institutional mission.” the past,
Consistent measurement and transparent present
With this approach, C A R E L is fully integrating
reporting sustainability throughout the company’s culture and
and future
into the Group’s vision, strategies and operating

C A R E L is aware of the importance of communicati ng practi ces.
Navigating
the company’s sustainability commitment to all of
a long and
its stakeholders and to measure and demonstrate winding
consistency between what it says and what it does. road
Going down
the road
Eight keys for

unlocking
the
sustainability
of your
business
Lessons from
the road
Why follow
the family
business
route to
sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
A living history of Case Study 1 2 3 4 5 6 7
sustainability
Foreword
Shepherd Neame Limited — UK

Established: 1698
Family: Shepherd and Neame E xecutive
Business sector: Brewery Current
leader’s generation: Fifth S ummary
Generations active in the business: Fifth and sixth
actively carrying on the family’s values Why the
sustainability
Operations: A portfolio of 300 pubs; 218 hotels
journey is a
and inns once-in-a-lifetime
opportunity
C onnecting
the past,
present
and future
Shepherd Neame is Britain’s oldest and largest
independent family brewer, and the company has
been on the sustainability journey since its earliest
Navigating
days. It sits on five acres in the middle of Faversham,
a long and
We’ve been on the sustainability the original site of artesian water that was discovered winding
journey since 1698! First and foremost, in the 16 th century. Generations of the Shepherd and road
Neame families have worked in the business, but just
we’re a community business.The as importantly, so have generations of local families.
brewery sits on five acres in the heart
Going down
of Faversham in Kent — the original A family and a business — both driven by the road
site of artesian water that was purpose and values
discovered
For five generations, the family’s unrelenting sense of Eight keys for
in the 16th century. Generations of unlocking
purpose to enrich the lives of their customers and
the Shepherd and Neame families communiti es has been driven by a culture of shared
the
sustainability
have worked here. But perhaps more values. Together, purpose and values have been the of your
importantly, so have generations of local foundation of Shepherd Neame’s business model and business
its history of sustainability. That foundation conti nues
families.” to be unshakable.
Lessons from
Jonathan Neame In Jonathan Neame’s view, the company’s journey the road
is enhanced by having both family and non-family
Chief Executive members aligned to a singular purpose: enriching
Shepherd Neame people’s lives. As he remarks, “A sustainability sea Why follow
change is happening in the post-pandemic world. the family
Younger employees definitely want to work for a business
The oldest and largest business that has a strong se nse of purpose. They route to
need to believe they are working for a company that sustainability?
independent brewery in the UK
is authentic and relevant. And, yes, they expect to be
paid a market rate, but their learning and development Putting
opportunities and how those will help to shape their sustainability
on the
future are what’s crucially important.”
strategic fast
track
Acknow ledgments
‘The jam in the donut of Faversham’ beers are brewed with the finest traditional ingredients
including water sourced from the artesian well deep
beneath the brewery.
Shepherd Neame’s unmatched heritage in the
heartland of Britain, combined with its long-term As well as pioneering sustainable brewing methods,
immersion in local communiti es, provides the the business is seeking to reduce its impact on
company with unique insights, knowledge and trust. the local environment and wider communiti es. Its
“We’re part of the community, and that enables us Streamlined Energy & Carbon Report for the 2022 Foreword
to adapt and develop our business in parallel with financial year demonstrates how measuring and
the reality of what’s happening demographically and reporting emissions data has encouraged the business
economically with our customers, employees and to target further ineffi ciencies and improve the
partners,” states Jonathan. company’s overall environmental performance.
E xecutive
The Shepherd Neame family is playing the long game. For example, an application is currently being
When ti mes have been tough, they’ve shown grit and processed for the installation of 650 solar panels S ummary
resilience in sticking to the delivery of their customer on the roof of the bottling hall, which is expected to
and community promises. And in good years, they’ve produce an esti mated 250 megawatt hours of energy
per year and save approximately 60 tons of CO 2 Why the
capped their dividends with a view that taking too
sustainability
much could mean they’re under-investing in the equivalent gross emissions. journey is a
business and putting their legacy at risk. once-in-a-lifetime
The direct benefits include lower energy costs, a
Sustaining this shared value and sense of purpose has better understanding of climate risks and allowing opportunity
to be something that others can see and believe in at the business to be confident in its role as a proactive
the operating level — a purpose that’s both authentic sustainability leader within the industry. C onnecting
and relevant. A good example is Shepherd Neame’s the past,
“Women in Brewing ” initiative. “ This is not a tick-the- Doing business in a socially responsible present
diversity-box exercise,” remarks Jonathan. “ Women and future
way
were actually the pioneers of brewing in the early
days. And that’s embedded in the D N A of our family
and throughout our business. But over the years, the Shepherd Neame takes also takes its responsibility to Navigating
number of female brewers has dwindled, and now customers and communiti es seriously and believes its a long and
we’re making a sustained effort to encourage women pubs should provide a friendly, safe environment for winding
to come back. It’s not only an important part of our customers, and the pubs are encouraged to be active road
history, but an important part of our future as well.” participants in their communiti es. Jonathan adds,
“ We believe that well-run pubs, parental guidance,
Sustaining a time-honored legacy individual responsibility and suitable education are Going down
important to establish a sensible attitude to drinking, the road
and we support a number of initiatives to help
In addition to its brewing and hospitality businesses, achieve our commitment to do business in a socially
Shepherd Neame owns and invests in listed buildings responsible manner.” Eight keys for
because of the importance of preserving the history unlocking
and a legacy. “ We are dedicated to safeguarding the Guided by good governance the
local brewing heritage for future generations,” says sustainability
Jonathan, “and our investment in the upkeep of these of your
buildings helps to preserve time-honoured crafts, such With strong board accountability and robust business
as thatching, signwriting, stonemasonry, traditional governance to underpin it, the collective responsibility
carpentry and glass etching.” to Shepherd Neame’s sustainable business strategy Lessons from
reinforces the trust that has been built within the the road
Environmental leadership community and among the company’s customers. The
board aims to ensure that the strategy and objecti ves
are consistent with the company’s culture: namely, an
The company also continues to be at the forefront of Why follow
emphasis on serving its communiti es and preserving
the family
environmental sustainability within the brewing and a long-term outlook; encouraging originality; and business
hospitality industry itself. Eighty percent of the hops for maintaining the company’s reputation as a good route to
the beer that the company produces are sourced locally, partner and employer through sustained fair and sustainability?
for example, and 100 percent of the barley is purchased ethical behavior.
in the UK — even though it’s more expensive than Putting
ingredients sourced overseas. And all of the company’s sustainability
on the
strategic fast
track
Acknow ledgments
Foreword
E xecutive
S ummary
Why the
sustainability
journey is a
once-in-a-lifetime
opportunity
C onnecting
the past,
present
Eightkeys to
and future
unlock the
Navigating
a long and
winding
road
sustainability of Going down
your business the road
Eight keys for

unlocking
the
sustainability
of your
business
Lessons from
the road
Why follow
the family
business
route to
sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
Eight keys to sustainability performance
The approach to sustainability 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.
Foreword
Each factor is important in its own right, but it's the combination that makes the real difference in the sustainability
performance of family businesses.
2
E xecutive
1 3
S ummary
Active
involvement of
non-family Why the
sustainability
me mbe rs journey is a
once-in-a-lifetime
Dispersed family opportunity
Highly structured ownership
g o vernance
C onnecting
practi ces the past,
present
4
and future
8
Navigating
a long and
winding
Gender diversity road
Forward-looking on the
orientati on board
Going down
the road
7 6 5
Eight keys for
unlocking
the
sustainability
Strong of your
Digitalizati on
entrepreneurial business
mindset
Lessons from
the road
Charismati c or
Why follow
transformational the family
leadership style business
route to
sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
1
Choosing the right governance practices in a family business is a critical
ingredient for the company’s long-term sustainability. While business
governance is essential for effective business processes and establishing control
mechanisms, family governance processes and structures 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
Highly structured group and what they want to achieve.
Foreword
governance
The presence of boards and family councils, for example, generally reflects a
practices strong governance mindset, and companies with good governance structures
and practices have typically made better progress in defining their sustainability
goals and implementing their strategies.
E xecutive
For Italy’s CA REL Industries, sustainability has not only become a structural
component of the company’s corporate strategy, it is also an integral part of S ummary
the board’s responsibilities. It has required the company to define and
adopt a governance structure for sustainability to ensure that it can be Why the
For family firms that are at the managed effectively and tightly integrated with the business and corporate sustainability
beginning of their sustainability culture. journey is a
journeys, empowered and once-in-a-lifetime
As CA REL Executive Director Carlotta Rossi Luciani describes, “At the board opportunity
effective family governance is level, I have specific responsibilities on sustainability in addition to what has
of utmost importance. Indeed, been assigned to the Control Risk and Sustainability Committee. A multi-
only by defining clear roles functional ES G team has also been created and is coordinated by the Chief C onnecting
and responsibilities within the the past,
Financial Officer. We believe this strong and integrated governance system is a
owning family, its structures and present
clear demonstration of CAREL’s commitment to sustainability and provides us and future
mechanisms will it be possible with a great opportunity to strengthen our competitiveness and attract the top
to foster communication and talent we need to achieve sustainable success.”
build consensus on ‘who are
we’, ‘where we want to go’ and Navigating
‘what we want to give to future a long and
winding
generations and to the world’. A
well-defined and fully developed Key insight road
family governance system
provides a strong foundation on Next-generation and independent board members are often the key
which to build the sustainability initiators of a formal sustainability strategy. The board is accountable for Going down
agenda of family firms. the strategy but implementation is the role of all the key players within the road
the family governance structure. It’s the role of family and owners’
Andrea Calabrò councils to consult with the board and provide their guidance.
STE P Project Global Consortium
Eight keys for
Academic Director unlocking
Professor of Family Business & the
Entrepreneurship sustainability
IPAG Business School of your
business
Lessons from
the road
Why follow
the family
business
route to
sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
2
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 digitalization of their businesses. The survey responses
showed us that 99 percent of the C EO s 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.
Active involvement
However, our previous research has shown 6 that there are proven benefits Foreword
of non-family to having a good balance of family and external experiences and views
members 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.
E xecutive
Because the board is a critical intermediary between the owners and
management, there is a danger that the family may not recognize emerging S ummary
trends and opportunities for progressing the company’s sustainability
agenda 7 if they aren’t actively capturing diverse views and input from outside Why the
the family. sustainability
journey is a
Family businesses that are dominated by family members on the Board and
once-in-a-lifetime
top management team may benefit from an external perspective to help drive opportunity
improved sustainability performance and objective measurement.
3
C onnecting
the past,
present
and future
Companies with highly concentrated family ownership (between 76
percent and 100 percent) reported low ratings on the sustainability
index. However, the level of digitalization was higher compared to Navigating
companies where the family owns fewer than 25 percent of the a long and
shares. winding
road
Dispersed Keeping it all in the family might not be the best option in terms of sustainability
actions. This is especially the case if the business requires substantial
family restructuring and reconversion processes in order to update its current
ownership business model to meet new industry standards and stakeholders’ demands.
Going down
the road
In such cases, cooperating with external capital providers may help to revise
the trajectory and set the stage for reorganizing their business model based on
the highest sustainability standards.
Eight keys for
unlocking
the
sustainability
of your
business
Lessons from
the road
Why follow
the family
business
route to
sustainability?
Putting
sustainability
on the
6
https://assets.kpmg.com/content/dam/kpmg/xx/pdf/2022/05/regenerative-power-of-family-businesses-report.pdf
strategic fast
7
Ward, J.L., (2006). Perpetuating the Family Business. Marietta, GA: Family Enterprise Publishers.
track
Acknow ledgments
4
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 positive economic, environmental and social performance.
The gender diversity factor has been identified in previous research and has
Gender shown that women directors have more diverse backgrounds and education
and can add ‘new thinking’ to the board. Having at least three women Foreword
diversity on
directors (which constitutes a “critical mass”) changes the boardroom
the board dynamics substantially and increases the likelihood that women’s voices and
ideas are heard.8
This phenomenon is often a combination of critical mass and the E xecutive

“trickle-down” effect, 9 where women in senior roles will advocate for
other women, and their presence in a senior role also increases the S ummary
attractiveness of the company to other women who are aspiring for
senior-level positions. Why the
The sustainability journey sustainability
has already begun, and journey is a
entrepreneurial families are in once-in-a-lifetime
opportunity
a position to lead it with their
innate ability to balance the Key insight
wealth of current and future C onnecting
generations with their natural How to encourage and support the “trickle-down” effect10 the past,
care for the community, people present
and the planet. • Introduce gender-conscious human resource policies in the and future
business.
In particular, female leaders in
family firms contribute a unique • Continue to make appointments until gender parity is achieved. Navigating
combination of hard and soft a long and
skills. This empowers them to • Make multiple female appointments to senior levels, such as the winding
help keep their families and their board. road
businesses on course towards
a sustainable world by ensuring • Make female appointments at multiple levels in the business.
that everyone remains focused Going down
on the pillars of responsibility • Introduce targets for female appointments, with specific the road
that support their companies’ competence requirements.
strategies.
Rosalia Santulli Eight keys for

ST E P Project Global Consortium unlocking
the
Research Champion
sustainability
Assistant Professor, University of your
of Genova business
Affiliated Researcher, IPAG
Business School
Lessons from
the road
Why follow
the family
business
route to
sustainability?
Putting
8
Torchia, M., Calabrò, A., & Huse, M. (2011). Women directors on corporate boards: From tokenism to critical mass. Journal of Business Ethics, 102(2), 299-317. 9
sustainability
Gould, A., Kulik, C., & Sardeshmukh, S. Trickle-down effect. The impact of female board members on executive gender diversity. Human Resource
on the
Management 2018:57:931 — 945.
strategic fast
10
Ibid.
track
Acknow ledgments
5
For some family businesses, digital transformation is a means of putting the
world’s economy on a sustainable footing by streamlining and modernizing
the companies’ operations to help fight climate change. For these
businesses, sustainability and digitalization are interconnected, making digital
technologies important sustainability enablers. Companies should adopt
digital solutions as an integral part of their sustainability strategy in order to
Digitalization increase their efficiency, reduce costs and drive innovations in sustainable
Foreword
practices. In fact, digital solutions are already being fully incorporated
into strategy discussions, especially for family businesses that see it as a
potential differentiator or a key enabler to achieve other sustainability targets.
”Technology is essenti al for tracking and reporting environmental

dimensions, such as the reduction of companies’ greenhouse gas E xecutive
emissions, circular economy management and water effi ciency.
Technologies are also critical supporting mechanisms for the social S ummary
dimension, in terms of cyber security and the protection of customer,
supplier and employee data.” Silvia Rimoldi, Partner, National K PM G Why the
Digitalization is envisioned Private Enterprise Leader, K P M G in Italy. sustainability
as a game-changing tool, journey is a
whereby its integration can For other companies, digital transformation has been the basis for once-in-a-lifetime
turbocharge the sustainability fundamental shifts in the business. Digital product and service innovations, opportunity
transformation of family fi rms for example, have helped some companies to make the transition from
as well as their competitive legacy “carbon era” businesses to “future-oriented” enterprises utilizing C onnecting
advantage. However, there advances in technology that offer ground-breaking opportunities to monitor the past,
is no one-size fit formula, and and protect the environment. present
to win this challenge, family and future
Companies must adopt digital solutions as an integral part of their
business leaders need to sustainability strategy in order to increase their efficiency, reduce costs and
be proactive in addressing drive innovations in sustainable practices. In fact, digital solutions are already
potential contextual and being fully incorporated into strategy discussions, especially for family Navigating
business changes, innovate a long and
businesses that see it as potential differentiator or a key enabler to achieve
their business models winding
other sustainability targets. road
frequently and be willing to
take risks. ”These businesses are typically faster, leaner, and more agile when it comes
to identifying, prioritizing and implementing new technologies. Some, for
Alfredo Valentino example, are using digital tools and sensors to track and monitor their energy Going down
Associate Professor of and water usage to optimize their resource consumption, and that also the road
International improves transparency and accountability in their companies’ operations.”
Business E S C E Paris Jubran Coelho, KPMG Private Enterprise Leader for the South Americas
Region and Brazil, KPM G in Brazil. Eight keys for
unlocking
the
sustainability
of your
business
Lessons from
the road
Why follow
the family
business
route to
sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
6
Leadership style is often an important factor in business performance.
Family businesses that are led by C E O s who have charismatic and
transformational leadership styles rated higher on the sustainability
index than companies with more authoritarian-style leaders.
Charismati c and transformational leaders also have a positive
Charismatic or influence on digitalization levels. In particular, family businesses
led by transformational leaders appear to have higher levels of Foreword
transformational digitalization.
leadership style
E xecutive
Key insight S ummary
Leading from the top Why the

“The sustainability strategy has to be driven from the top. If you want sustainability
to change anything, it has to be held or owned by someone on the top journey is a
leadership team. The person who owns it has to have the background once-in-a-lifetime
and skills to support it and he or she also has to be seen throughout the opportunity
organization as the obvious person to be in that role.”
C onnecting
Michael Donaldson the past,
Executive Chairman present
Donaldson Group — A 162-year-old, sixth-generation business; one of the and future
UK’s largest, privately owned timber companies with over 1,700 employees
the family governance structure. It’s the role of family and owners’
councils to consult with the board and provide their guidance.
Navigating
a long and
winding
road
Transformational leaders are also able to influence the basic values,
beliefs and atti tudes of their “followers”, making them willing to perform
beyond the minimum levels that are required by the business. This is a Going down
critical factor in creating a more economic, environmental and socially the road
sustainable world by lifting ordinary people to extraordinary heights and
motivating them to perform above and beyond expectati ons.
In our experience, companies that are led by transformational leaders also Eight keys for
unlocking
typically deliver good financial results while also making long-term social
the
and environmental progress, and they help to strengthen their family’s
sustainability
loyalty and identification with the business. of your
Charismati c leaders have a similar power of persuasion and they’re able to business
motivate their followers who often have a heightened sense of collective
identity, feelings of empowerment and believe in the importance of the Lessons from
performance of the group as a whole. the road
Why follow
the family
business
route to
sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
7
Similarly, families that have maintained a strong entrepreneurial
mindset are also inclined to have a holistic view of performance that
includes economic goals as well as their environmental and societal
impact objectives.
The entrepreneurial mindset of families in business is often one of their
Strong core competitive advantages because it enables them to identify and
make the most of new opportunities, overcome challenges and act as an Foreword
entrepreneurial
engine for innovation and transformational change.
mindset
Nurturing transgenerational entrepreneurship is typically a family
priority because it’s seen to be essential for developing innovations
that will continue to bolster the competitiveness of the business while
E xecutive
also sustaining the core principles and values of the family. In our 2022
report, ‘The regenerative power of family businesses: Transgenerational S ummary
entrepreneurship’, we described how the strength of the entrepreneurial
orientation in a family business is one of the most important keys for
unlocking its ability to continuously adapt, innovate and grow. Why the
sustainability
The same holds true when it comes to the sustainability agenda, journey is a
where a strong entrepreneurial mindset — stretching across multiple once-in-a-lifetime
generations — has similar performance power. opportunity
Quantifying business performance can be challenging in any company. And

gauging the performance of a family business is even more complex. For C onnecting
the past,
the sustainability of the business, financial results are clearly important.
present
But, also maintaining the founder’s vision, a culture of entrepreneurialism and future
and a reputation as responsible owners are of equal importance.
When it comes to the sustainability of the business, as well as its
environmental and social impact, reputation is becoming more and Navigating
more critical and it’s captured in the actions of family businesses that a long and
are limiting their environmental impact — well beyond compliance — winding
and educating their stakeholders as well. On the social side, many are road
increasingly adopting new hiring practices focused on minority groups,
persons with disabilities and in achieving greater gender balance in
senior management roles. Going down
the road
Eight keys for

unlocking
the
sustainability
of your
business
Lessons from
the road
Why follow
the family
business
route to
sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
8
The world is faced with increasingly scarce resources, and family businesses
that are forward looking in terms of their business and are highly
structured in terms of their governance (such as having a formal board
and family council) are able to apply their patient capital to long-term
investments for the sustainability of their businesses and to the world.
Forward-looking They are able to evaluate the future benefits derived from investing in
sustainability today. With a long-term vision, they are more inclined to support Foreword
orientation the current cost of sustainability investments because they see the opportunity
to translate those investments into greater future economic performance.
As Héctor Dominguis, Chief Executive Officer of Spain’s Grupo Dominguis
Energy Services (GDES) described, “In addition to developing long-term
E xecutive
business plans, we plan for the generations that will follow as well, and we
work diligently to leave them a better company. This is what has led us to S ummary
make sustainability the centerpiece of our purpose. We want to leave them a
more sustainable business and a better planet for future generations by
helping to improve the environment, the economy and society as a whole. Why the
In Venezuela, family businesses sustainability
This is our central purpose. It makes sustainability more important than the
are focused on surviving an journey is a
purpose
economic crisis. For the long term, once-in-a-lifetime
of growth – and it is embedded in our business to add value by opportunity
they recognize the importance of providing sustainable services to our clients.”
transforming their businesses,
and adopting sustainable business As described in our previous report, “Creati ng value through good C onnecting
practices and principles is part governance”, family governance plays a particularly important sustainability the past,
of that transformation. Looking role in maintaining a forward-looking view. By continuously supporting present
ahead, some are taking the the shared purpose, principles and values of the family and the business, and future
country’s environmental, human these practices open up opportunities to addressing important long-term
rights and labor regulations questions, such as “Why are we doing this together?” and “What do we
and building them directly into want to achieve for our business and our family today and in the future?” Navigating
their business operations with a a long and
Strong business governance practices are essential for making sure
sustainability context. I expect this winding
that effective business processes and control mechanisms are in place road
will become more prevalent among for achieving positive, long-term economic, environmental and social
product and service exporters outcomes. Family governance serves a different, yet connected, purpose.
who will face new regulations Not only does it help to support a strong communication environment
that are framed in sustainability among family members, it also helps to define who the family is as a group Going down
and environmental, social and the road
and their long-term outlook for the future.
governance (ESG). In this way,
the forthcoming regulations will This long-term perspecti ve enables them to evaluate the future benefits
likely help to accelerate many that may be derived from investing in sustainability today. And because Eight keys for
companies’ sustainability actions they have a cohesive long-term vision, they’re also more inclined to unlocking
as well as their competitiveness by support the current cost of sustainability investments because they’re the
creating business opportunities in able to see the opportunity for translating those investments into greater sustainability
entirely new markets. future economic performance. It’s a dynamic process, and it helps family of your
fi rms to continue to be ‘fit for purpose’ as the business, the family and the business
Alejandro Rangel Darauche world around them evolves.
Tax Partner Lessons from
KPM G Private Enterprise the road
KPMG in Venezuela
Why follow
the family
business
route to
sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
Foreword
E xecutive
S ummary
Why the
sustainability
journey is a
once-in-a-lifetime
opportunity
C onnecting
the past,
present
and future
Lessons from
Navigating
a long and
winding
road
the road Going down

the road
Eight keys for

unlocking
the
sustainability
of your
business
Lessons from
the road
Why follow
the family
business
route to
sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
The family business leaders, academics and professionals who contributed to this report have provided a wealth
of examples that bring to life both how — and why — family businesses have embarked on their sustainability
journeys to achieve one or more of the three inter-connected goals:
Foreword
the long-term adopting supporting

sustainable
12 3
sustainability people and the E xecutive
of their practices in planet outside S ummary
business their business their business

Why the
sustainability
journey is a
once-in-a-lifetime
opportunity
C onnecting
the past,
present
and future
A family business in Ireland’s utilities sector, for

example, has developed an impressive strategy Navigating
that integrates sustainability across the company’s a long and
winding
business operations for the benefit of both its
road
internal and external stakeholders. The business
produces an annual sustainability report that details
a range of initiatives and progress. It provides clear
and ‘lived’ examples of the company’s commitment Going down
the road
to its net zero carbon objectives and the circular
economy initiatives that support employees who
are interested in retrofitting their homes, with
practical examples of what these initiatives mean Eight keys for
for their business, their communities and the world. unlocking
the
Camilla Cullinane sustainability
Partner of your
KPMG Private Enterprise business
KPMG in Ireland
Lessons from
the road
Why follow
the family
business
route to
sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
Traveling down a winding road
From focusing on sustainability as a business imperative to preparing for new environmental regulations, here are some examples of the insights and lessons that family
businesses have gathered on their travels along the road to sustainability.
Foreword
Sustainability as a business imperative

E xecutive
Family business leaders who
contributed to the report described S ummary
how sustainability is not something
that runs parallel to their business. Why the
Here’s how they described why it’s a sustainability
Integrating sustainability throughout the business Sustainability as a business differentiator Why sustainability is good for business journey is a
business imperative and embedded in
once-in-a-lifetime
their long-term goals. Sustainability is no longer something that happens We are very green-oriented. We have made investments Sustainability is not an add-on. It has to be properly
opportunity
in parallel to the business or as a complement to the to prove that, and it’s being recognized by our customers. woven into the fabric of the company’s core culture. It’s
business model. It has to represent the family and the It’s definitely a differentiator, and we can measure it in a key part of talent attraction, retention and succession.
way it does business. Otherwise, it doesn’t work. This terms of sales. We still don’t have it at a strategic level. This is the biggest consideration for all businesses C onnecting
is a particular challenge for family businesses There isn’t as much legislation in Venezuela compared to these days because the young people only want to the past,
because it isn’t just about creating economic, most of Europe, and so the environmental aspect is not work for organizations that look after their people, the present
environmental or social value, but about creating yet a central part of the business discussions. So, it takes environment and take proper care. and future
family value today and for generations to come. a lot of effort to convince the board to keep doing this.
We have a plan, but it isn’t yet integrated with our overall Rebecca Bonnington
Luis Diaz Matajira business strategy. We are going in that direction, but we C EO and Co-founder
Professor, Universidad de los Andes — A private aren’t there yet. Tricres — A first-generation revolutionary coaching firm in Navigating
research university, consistently ranked as the best the UK for small and medium-sized companies a long and
university in Colombia Anonymous winding
Retail sector, Venezuela road
Going down
the road
Bringing others on the sustainability journey
For some family businesses, it’s important to Eight keys for

unlocking
pause and invite customers and others to join
Bringing customers on the sustainability journey the
them on the sustainability journey and educate sustainability
them about the actions the business is taking. Preserving our legacy as a social issue For decades, Kilkenny Group has proudly worked with a of your
community of local suppliers who share a passion and a business
It’s interesting to hear so many comments about commitment to being kind to our planet. Sustainability is
sustainability as a social issue, because this is where we one of our strategic pillars, and it is being built into every
are as a family and a business. In Spain, we are very family area of our business. Right now, the biggest challenge Lessons from
oriented – one of our workers has been in the company is looking for ways to manage the increased costs of the road
for 40 years; the second longest for 31 years; and others sustainable packaging and recycling. And so, educating
for 16 years or more. Twenty families depend on our our customers and managing the potential increases in the
business, and it won’t be sustainable for them or for us cost of our products is going to be a large part of that. We
if we don’t work together to reduce waste and optimize Why follow
see this as a new opportunity — to not only improve the the family
our processes. It’s about sustaining our legacy and it’s environment, but to bring our customers along with us on
important for everyone in the family and our company to business
the journey. route to
understand ‘that’s why you are here’.
sustainability?
Marian O’Gorman
María Andreu
Chairperson
Director Putting
Kilkenny Group — A 50-year-old, second-generation
Ofival — A 49-year-old, 2nd generation sustainability
business and one of Ireland’s leading retailing
office furniture manufacturer in Spain on the
groups, with over 300 employees
strategic fast
track
Acknow ledgments
Measuring and reporting impact
In some countries, regulatory compliance

has been the primary driver of sustainability.
With or without regulations, many
business families described how they're
Foreword
making it a priority to measure their impact.
Why it’s important to measure what matters
Linking sustainability performance and remuneration Anchoring KPIs in decision-making
My concern about the ‘green’ agenda as it currently
In recent years — more and more family businesses For many family businesses in Germany, the
stands is the greenwashing that a number of
are including environmental and social metrics in their intergenerational development of their business model has
businesses seem to be adopting. We ask our E xecutive
management remuneration systems. been the primary driver, followed by market competition
businesses to start measuring what’s actually going
and rising customer expectations. Due to their long-term
on in a practical sense so that we have something we This requires a long-term vision, relevant data and S ummary
focus and responsibilities toward society, we expect to
can measure ourselves against going forward, and transparent reporting to aid understanding among different see the deeper integration of financial and non-financial
then see if there are some sensible actions that we stakeholders. Having a clear and defined ES G strategy sustainability KPIs in their steering models. They will put
can adopt. But it has to be economic. And you have to will be the fundamental starting point for developing Why the
additional focus on sustainability KPIs in management
believe in what you’re doing and be able to stand up metrics that link remuneration with achieving sustainability sustainability
reporting, planning and forecasting cycles, decision-making
and defend it when necessary. objectives. journey is a
processes and management incentives.
once-in-a-lifetime
Edward Iliffe Miguel Angel Faura Borruey opportunity
Vera-Carina Elter
Chief Executive,Yattendon Group — A 145-year-old National KPMG Private Enterprise Leader Managing Partner
group of subsidiary companies operating in Partner KPMG Private Enterprise C onnecting
marine leisure, property and local media KPMG in Spain KPMG in Germany the past,
sectors globally
present
and future
Navigating
a long and
winding
road
Going down
the road
Eight keys for

The future of sustainability unlocking
Growing the business with a sustainability focus Making sure that sustainability is sustainable the
sustainability
Many family businesses highlight the need The need for urgent action now If you look at our company’s journey over the past 20 years, For decades we’ve been working with local organizations; of your
our founder focused on survival for the first 12 years and finding the best solutions for what the community needs;
for urgent action with others in their industry, Urgent actions are needed in order for our children to enjoy business
how to grow the business to the next stage. As the and where we can help them to help themselves. It’s a
across industries and in their community to a healthy planet. But our individual efforts will have a limited business transitioned to the next level, it took a few years to messy journey, but we’re on it and trying to do the right
achieve collective impact. impact on true sustainability. That is why we have to stretch recognize that the way we operated was not suitable for thing by bringing people with us. But we have to stay in Lessons from
beyond ourselves and increase the collective impact we can the next 20–30 years. Now, with a modern management business as well. The question regarding sustainability is, the road
have on others through our businesses. This has made us team, we’re ‘What is the best solution out there for a given issue?’ It
realize that our purpose as a family in business should not looking at everything again and identifying the issues we need will continue to be messy for a while until the technology
focus only on future generations of our own family. Now we to address for the next 30 years.The critical question is, ‘What improves and makes many of these sustainability initiatives
are putting sustainability at the center of our purpose with an will continue to make us proud to be part of this business?’ economically sustainable as well. Why follow
ambition to have a larger impact on the sustainability of our Small, practical efforts are being made and now we’re beginning the family
clients and, ultimately, on the planet. to explore bigger and bolder projects. We are ready to show the Anonymous business
world how much we can do as a medium-sized company. Property development and investment group in Ireland, route to
Héctor Dominguis the UK and Europe sustainability?
Chief Executive Officer, Grupo Dominguis Energy Harmeet Ahuja
Services — A 90-year-old, third-generation energy Group C E O Putting
markets industrial services leader in Spain with Sunmark — A 27-year-old, UK-based marketer sustainability
over 1,000 employees worldwide and global distributor of fast-moving on the
consumer goods strategic fast
track
Acknow ledgments
Foreword
E xecutive
S ummary
Why the
sustainability
journey is a
once-in-a-lifetime
opportunity
C onnecting
the past,
present
Why follow
and future
the family
Navigating
a long and
winding
road
business route to Going down
sustainability? the road
Eight keys for

unlocking
the
sustainability
of your
business
Lessons from
the road
Why follow
the family
business
route to
sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
The potential benefits of the family business sustainability model
The concept of sustainability starts at the top with business owners who embed it in their companies’
mission statements and in the core values of their businesses and their families.
Looking at sustainability through the family business lens, there are many tangible benefits of the family
business approach that may be relevant and beneficial to businesses of all types.
Foreword
E xecutive
Value creation Increased customer loyalty S ummary

While some companies regard Today’s customers expect companies to show that they
sustainability through a compliance care about their social and environmental impact, and they Why the
lens, most family businesses embrace increasingly continue to do business with companies that sustainability
it as an opportunity for significant value demonstrate a strong commitment to people and the planet journey is a
creation and competitive advantages. and the long-term sustainability of their own businesses. once-in-a-lifetime
opportunity
C onnecting
the past,
present
and future
Environmental and social progress Growing human capital
Family businesses typically have unique relationships Tapping into the skills, knowledge and experiences
and reputations to uphold in the communities where of every generation of the family and its employees,
Navigating
they operate, and they recognize the need to continue family businesses are able to make faster progress on a long and
to contribute. Long-term stewardship is a core value in both their sustainability and digitalization objectives. winding
many family businesses, and they believe they have an Their reputation as strong advocates for social and road
opportunity and an obligation to make the world better environmental progress and the actions they take within
by advancing environmental and social progress. their own businesses contributes to the attraction and
retention of top-performing employees.
Going down
the road
Eight keys for

unlocking
Reducing costs by operating Increasing the access to limited sources of the
responsibly. capital sustainability
of your
By using their own resources sustainably, Increasingly, banks and other financial institutions are taking
business
family businesses have the potential to a company’s environmental exposure and performance into
reduce their operating costs by cutting consideration. A strong sustainability record can make family
waste, reducing pollution and improving businesses more attractive to future business partners, Lessons from
the long-term viability of their businesses. investors and bankers who are inclined to offer preferred the road
financing and investment arrangements.
Why follow
the family
business
route to
Financial benefits sustainability?
In addition to the social benefits of improving the

Mitigating risks
Putting
environment and elevating human needs, family businesses One environmental misstep can ruin years of
sustainability
also recognize the financial benefits of the increases in dedication, hard work, good will and reputation. on the
customer attraction and retention that result from the Environmental and societal stewardship can be strategic fast
sustainability of their firm and the social and environmental an important risk mitigation step for the business track
impact they have as a respected brand. as well as the family.
Acknow ledgments
Foreword
E xecutive
S ummary
Why the
sustainability
journey is a
once-in-a-lifetime
opportunity
C onnecting
the past,
present
Putting
and future
sustainability on
Navigating
a long and
winding
road
the strategic fast Going down
track the road
Eight keys for

unlocking
the
sustainability
of your
business
Lessons from
the road
Why follow
the family
business
route to
sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
Doing what’s right for generations to come
When it comes to sustainability, one of the key

opportunities for family businesses is to maintain —
and even enhance — their legacies by embracing the One company started its sustainability process by
competitive advantages of being a sustainability- appointing resources and people to lead the effort.
focused business. That included a member of the leadership team Foreword
whose role at the beginning was to understand
In conversations with family business leaders, we the organization from the bottom up; to identify
heard how most family businesses were created by the implicit sustainability efforts that the business
a founder who had a genuine intention to address was already undertaking; and to explain the
real-world needs, combined with a financial ambition advantages of making them explicit by connecting E xecutive
for themselves and their families. them to the day-to-day operations and research and
This was the beginning of their entrepreneurial development areas that were already part of the S ummary
journey, and over time, new opportunities and business strategy.
challenges emerged. But even as the direction of Ana Gonzalez Why the
travel may have changed, the original intent and Assistant Professor of Management sustainability
ambition for the business and the family remained Director, Family Owned Business Institute journey is a
intact. The sustainability journey is no exception. once-in-a-lifetime
Seidman College of Business
opportunity
This is not an easy or a fast journey. It takes time and Grand Valley State University
the right people to support, explain and promote the
C onnecting
initiatives and potential changes, as well as the
the past,
support of the owning family, the board and the present
leadership team. and future
For many, the starting point has been to engage
family members from every generation — as well
as independent board members — to map out the Navigating
practical steps that can be taken to weave sustainability a long and
throughout the business strategy and to do so in a way winding
that will have a meaningful and lasting impact. road
Some begin by reflecting on the biggest thinking about the

world’s biggest problems — such as the UN’s
Going down
17 sustainable development goals — and selecting those the road
where their company can make real change and add value.
Eight keys for

unlocking
the
sustainability
By aligning your people and of your
business
your company with a cause that
is much bigger than you, you
Lessons from
have the opportunity to say ‘this the road
is how we’re going to solve the
world’s biggest problems in the
Why follow
next number of years’ — then the family
align all of your sustainability business
route to
programs and actions to that. sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
Paving the way to sustainability
As you prepare for the first or next phase of your

sustainability journey, here are some guideposts and
questi ons to consider. One family business in Greece that I’m familiar
with has developed a three-layer sustainable
development framework with: 1) links to the UN Foreword
• Setting goals and milestones sustainable development goals (SDGs) to actively
participate in the global efforts to tackle climate
How can you and your family go about establishing
change and the national effort for transitioning to
concrete goals and milestones for the sustainability
a low-emissions economy; 2) a focus on corporate
performance of your business and your
responsibility by working responsibly to secure the E xecutive
environmental and societal impact?
“social license to operate”; and 3) the adoption of
• Investing in technology E S G metrics to measure their performance in a S ummary
systematic and integrated way.
So me family businesses may be high on the
sustainability index, but they don’t always have Vangelis Apostolakis Why the
Deputy Senior Partner sustainability
access to supporting data to measure and report on
Head of Advisory journey is a
it. Are you prepared to invest in more advanced digital
once-in-a-lifetime
solutions to measure the impact of your sustainability KPMG Private Enterprise
opportunity
efforts? KPMG in Greece
• Taking a multi-generational journey C onnecting

the past,
Senior and younger generations may have different
present
views on what sustainability means. How can you and future
use this as an opportunity to open up conversati ons
about wealth, purpose and social and environmental
impact and give every generation a voice in the
Navigating
family’s sustainability journey?
a long and
• Encouraging fresh thinking and new ideas winding
road
How can you encourage diverse views, capabilities
and external perspecti ves about the business and its
economic, social and environmental impact and its
Going down
digitalization?
the road
Eight keys for

unlocking
the
sustainability
of your
business
Lessons from
the road
Why follow
the family
business
route to
sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
Let a shared purpose be your
guiding light
Large companies and small, privately owned and public, in mature and developing economies alike: all are expected to Foreword
contribute to social and environmental progress in some way — whether large or small. The journey begins with a clear
sense of purpose that is aligned behind a shared vision to create the kind of world we want for every generation.
This unwavering level of commitment is the guiding light that steers the acti ons of responsible businesses, individuals
and organizations of every type. As a catalyst for innovation and growth, responsible actions will help communiti es E xecutive
across the world to rise up and fuel a global movement that creates a more equitable and sustainable future for
everyone. S ummary
K P MG Private Enterprise and the S T E P Project Global Consorti um that the insights and practical experiences of the
family business leaders who are represented in this report can contribute to your own smooth and successful journey. Why the
sustainability
Please contact us at familybusiness@kpmg.com or a.calabro@ipag.fr to share your insights and experiences. journey is a
once-in-a-lifetime
K P MG Private Enterprise and the S T E P Project Global Consorti um welcome your comments on the report and your
opportunity
experiences and insights. We’re particularly interested in hearing your views on the key success factors that have
contributed to your progress and what you expect as you continue to travel down this road.
C onnecting
the past,
present
and future
Navigating
Contact us a long and
winding
Andrea Calabrò road
Tom McGinness
ST E P Project Global Consortium Global Leader
Academic Director Family Business
Director, IPAG Entrepreneurship KPMG Private Enterprise Going down
& Family Business Center KPMG International and the road
IPAG Business School Partner, KPMG in the UK
E: a.calabro@ipag.fr E:
tom.mcginness@kpmg.c
o.uk
Eight keys for
unlocking
the
sustainability
of your
business
Lessons from
the road
Why follow
the family
business
route to
sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
Acknowledgements
Our sincere thanks to the family business leaders, academic researchers and family business advisers who
contributed their insights in a series of roundtable discussions and interviews. Foreword
Families
We would also like to thank our Project Managers Arpita Vyas (The S T E P Project Global Consorti um) and
Heather Baker (KPMG Private Enterprise).
E xecutive
Germany Spain Michael Donaldson
Dr. Daniel Mitrenga Héctor Dominguis Executi ve Chairman S ummary
Member of the Executi ve Board Chief Executi ve Offi cer Donaldson Group
D IE FA M IL I E N U N T E R N E H M E R & DI E Grupo Dominguis Energy Services Why the
JUNGEN UNTERNEHMER Rebecca Bonnington sustainability
Spain C E O and Co-Founder journey is a
Ireland María Andreu Tricres once-in-a-lifetime
Jim Barry O wner opportunity
Managing Director Ofival Rupa Patel
Barry Group Executi ve Director
United Kingdom Day Lewis C onnecting
Marian O’ Gorman Edward Iliffe the past,
Chairperson Group Chief Executi ve Sarah Baker present
Kilkenny Group Yattendon Group Marketing Director and future
J S P Ltd
Italy Harmeet Ahuja
Carlotta Rossi Luciani Group Chief Executi ve Offi cer Sir James Wates CBE Navigating
Director Sun Mark Chairman a long and
C A R E L Industries Wates Group winding
Jonathan Neame road
Nigeria Chief Executi ve Thomas Martin
Temitope Samson Shepherd Neame Non-Executive Chairman
Executi ve Director Arco
Bovas Group Mark Johnstone Going down
Chief Executi ve the road
Singapore J S P Ltd
Clement Piak
Executi ve Director Eight keys for
Rico Engineering unlocking
Works Pte Ltd
the
sustainability
of your
business
Lessons from
the road
Why follow
the family
business
route to
sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
STEP Project Global
Consortium Affiliates Foreword
Argentina Maria Piedad López Vergara Thomas Clauß

Pedro Vázquez Director of the I N A L D E research center Full Professor and Head of Chair in
Director of the Family Business Centre Family Business Center Corporate Entrepreneurship and
IA E Business School E: maria.lopez@inalde.edu.co Digitalization in Family Business E xecutive
E: pvazquez@iae.edu.ar Witten/Herdecke University
Ecuador E: thomas.clauss@uni-wh.de S ummary
Canada Maria L. Granda
Albert James Professor, E S PA E Graduate School of Guatemala
Why the
Associate Professor of Family Business Management — E S P O L Jaly Chea
sustainability
and Entrepreneurship, Rowe School of E: mgranda@espol.edu.ec Associate Dean journey is a
Business, Dalhousie University School of once-in-a-lifetime
E: albert.james@dal.ca France Business
opportunity
Miruna Radu-Lefebvre Universidad
Francesco Barbera Head of the Chair Family Francisco
Marroquín C onnecting
Associate Professor, Entrepreneurship & Entrepreneurship and Society and Hong Kong SAR, China
E: c the past,
Strategy, Toronto Metropolitan University Professor in Entrepreneurship Kevin Au
heajaly@ufm.e
E: francesco.barbera@ryerson.ca Audencia Business School Director
du of Center for Family Business present
E: mradu@audencia.com Chinese University of Hong Kong and future
China E: kevinau@cuhk.edu.hk
Ling Chen Mariem Hannachi
Dean of Institution for Entrepreneurship Assistant Professor of Family Business India Navigating
Zhejiang University and Entrepreneurship Nupur Pavan Bang a long and
E: ietlchen@zju.edu.cn E S S C A School of Management Associate Director, Thomas Schmidheiny winding
E: mariem.hannachi@essca.fr Centre for Family Enterprise road
Colombia Indian School of Business
John Rosso, PhD Andrea Calabrò E: nupur_pavan@isb.edu
Department Chair S T E P Project Global Consorti um
Accounti ng & Finance Academic Director Tulsi Jayakumar Going down
I C ES I University Director, IPAG Entrepreneurship & Family Professor, Economics and Executi ve the road
E: Business Center Director, Center for Family Business &
jwrosso@icesi.edu.co IPAG Business School Entrepreneurship, S.P. Jain Institute of
Luis Diaz-Matajira E: a.calabro@ipag.fr Management & Research (SPJIMR)
Eight keys for
Assistant Professor E: tulsi.jayakumar@spjimr.org
unlocking
Universidad Germany the
de los Andes Petra Moog sustainability
School of Chair of Entrepreneurship and Family of your
Management Business, Siegen University business
E: E: p.moog@uni-siegen.de
luidiaz@uniandes.e
du.co
Lessons from
the road
Why follow
the family
business
route to
sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
Ireland Peru USA
Catherine Faherty César Cáceres Ana Gonzalez
Assistant Professor of Enterprise Associate Professor Assistant Professor of Management
D C U Business School Associate Director Business Families Center Director Director, Family Owned Business
D C U National Centre for Family Business Universidad de Piura Institute, Seidman College of Business
Dublin City University E: cesar.caceres@udep.edu.pe Grand Valley State University
E: catherine.faherty@dcu.ie E: gonzaana@gvsu.edu
Spain Foreword
Italy Alejandro Escribá-Esteve Izabela Szymanska
Chiara Succi Full Professor of Management Associate Professor of Management at
Associate Professor Director of the Chair of Family Business Saginaw Valley State University
E S C P Business School University of Valencia E: iiszyman@svsu.edu
E: csucci@escp.eu E: alejandro.escriba@uv.es
Pramodita Sharma E xecutive
Carmen Gallucci Manuel Carlos Vallejo-Martos Professor & Schlesinger Grossman Chair
Associate Professor of Finance Head of the Cátedra of Family Firm of Family Business, The University of S ummary
University of Salerno University of Jaén Vermont, Grossman School of Business
E: cgallucci@unisa.it E: mvallejo@ujaen.es E: pramodita.sharma@uvm.edu Why the
sustainability
Mexico Ramón Sanguino Galván James H. Davis journey is a
Ricardo Aparicio Associate Professor, Business Buehler Endowed Professor and Head once-in-a-lifetime
Professor at the Organizational Behavior Administration Department of Management and Marketing and opportunity
Department and Director at C I F E M I BBVA University of Extremadura Strategy Department, Huntsman School
IPADE Business School E: sanguino@unex.es of Business, Utah State University
E: raparicio@ipade.mx E: j.davis@usu.edu C onnecting
Montserrat Boronat Navarro the past,
Netherlands Associate Professor and Vice Dean of L aw William B. Gartner present
Erik Veldhuizen and Economics faculty Professor, Bertarelli Foundation and future
Associate Professor Dutch Centre of Business Administration and Marketing Disti nguished Professor of Family
Experti se in Family Business department, Universitat Jaum e I Entrepreneurship, Babson College
Windesheim University of G REC O- UJI Group E: wgartner@babson.edu Navigating
Applied Sciences E: mboronat@uji.es a long and
E: hg.veldhuizen@windesheim.nl Venezuela winding
United Arab Emirates Patricia Monteferrante road
Norway Rodrigo Basco Director of the Entrepreneurship Center
Carl Åberg Associate Professor Instituto de Estudios Superiores de
Associate Professor, University of Sheikh Saoud bin Khalid bin Khalid Administración
South-Eastern Norway Al-Qassimi Chair in Family Business E: patricia.monteferran@iesa.edu.ve Going down
E: carl.aberg@usn.no American University of Sharjah the road
E: rbasco@aus.edu
Eight keys for

unlocking
the
sustainability
of your
business
Lessons from
the road
Why follow
the family
business
route to
sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
KPMG Private Enterprise
advisers Foreword
Our thanks to all of the KPMG Private Enterprise member firms that participated in the development of
this report, in particular those that contributed to the roundtable discussions.
E xecutive
Argentina Brazil China
S ummary
Emiliano Martin Jubran P Coelho Karmen Yeung
National K P M G Private K P M G Private Enterprise Leader for the National K P M G Private
Enterprise Leader South Americas Region and Brazil Enterprise Leader Why the
K P M G in Argentina K P M G in Brazil Partner sustainability
E: E: jpcoelho@kpmg.com.br K P M G China journey is a
emilianomartin@kpmg. E: once-in-a-lifetime
com.ar
Australia Carolina Oliveira karmen.yeung@kpmg. opportunity
Robyn Langsford Managing Partner of K P M G Private com
Colombia
Partner Enterprise Martín Escobar
C onnecting
Private Clients & Family Business K P M G in Brazil Director K P M G L aw and K P M G Private
the past,
K P M G Australia E: carolinapoliveira@kpmg.com.br Enterprise Leader
present
E: rlangsford@kpmg.com.au K P M G in Colombia
and future
Cambodia E: marti nescobar@kpmg.com
Daniel Trimarchi Trãn Thanh Tâm
Director, Family Business & Private Head of Markets Group Carlos Neira
Clients and Director, Global Centre of K P M G in Vietnam & Cambodia Head of Family Business Navigating
Excellence for Family Business, K P M G E: tamttran@kpmg.com.vn Partner a long and
Private Enterprise, K P M G Australia K P M G Private Enterprise winding
E: dtrimarchi@kpmg.com.au Canada K P M G in Colombia road
Mary Jo Fedy National E: ceneira@kpmg.com
Austria K P M G Private
Yann Georg Hansa Enterprise Leader Cyprus
Going down
Partner Partner Demetris Vakis
the road
K P M G in Austria K P M G in Canada Board Member
E: yannhansa@kpmg.at E: mfedy@kpmg.ca K P M G Private Enterprise
K P M G in Cyprus
Bahrain Yannick Archambault E: Eight keys for
Harish Gopinath Partner, National Leader — Family demetris.vakis@kpmg.co unlocking
Partner, K P M G Private Enterprise Offi ce m.cy
France the
K P M G in Bahrain K P M G in Canada Alpha Niang sustainability
E: hgopinath@kpmg.com E: yarchambault@kpmg.ca Partner of your
K P M G Private Enterprise business
Bermuda Channel Islands K P M G in France
Steve Woodward Paul Beale E: nbeaudouin@kpmg.fr
Lessons from
Managing Director, Sector Lead Director, Tax & Head of Family Offi ce
the road
K P M G Private Enterprise and Private Clients Nicolas Beaudouin
K P M G in Bermuda K P M G in the Crown Dependencies Partner
E: stevewoodward@kpmg.bm E: paulbeale@kpmg.com K P M G Private Enterprise
K P M G in France Why follow
Bolivia Chile E: nbeaudouin@kpmg.fr the family
Drina Krsul Enrique Margotta business
Lead K P M G Private Enterprise Director Partner Germany route to
K P M G in Bolivia K P M G Private Enterprise Vera-Carina Elter sustainability?
E: dkrsul@kpmg.com K P M G in Chile Head of People and K P M G Private
E: emargotta@kpmg.com Enterprise in Germany Putting
K P M G in Germany sustainability
E: veraelter@kpmg.com on the
strategic fast
track
Acknow ledgments
Dr. Knut Tonne Israel Netherlands
Partner Jonathan Lavender Olaf Leurs
K P M G Private Enterprise Global Head Head of K P M G Private Enterprise, Tax
K P M G in Germany K P M G Private Enterprise Tax Partner
E: ktonne@kpmg.com Partner K P M G Meijburg & Co
K P M G International K P M G in the Netherlands Foreword
Ghana E: E: leurs.olaf@kpmg.com
Joyceline Coleman jonathanlavender@kpmg.
Partner com
Yaaqov Gamliel Arnold De Bruin
K P M G in Ghana Head of K P M G Private Enterprise Head of K P M G Private Enterprise
E: joycelinecoleman@kpmg.com Partner, Audit Family Businesses
K P M G in Israel Audit Partner E xecutive
Greece E: ygamliel@kpmg.com K P M G Assurance
Vangelis Apostolakis K P M G in the S ummary
Deputy Senior Partner Italy Netherlands
K P M G Private Enterprise Silvia Rimoldi E:
Why the
K P M G in Greece National K P M G Private debruin.arnold@k
Mark Lof
pmg.nl sustainability
E: eapostolakis@kpmg.gr Enterprise Leader Head of K P M G Private Enterprise journey is a
Partner Advisory Partner once-in-a-lifetime
K P M G in Italy K P M G in the Netherlands opportunity
Ekaterini Polyzoi E: srimoldi@kpmg.it E: lof.mark@kpmg.nl
Senior Manager
K P M G Private Enterprise Jamaica Nigeria C onnecting
Family Business Tarun Handa Tayo Ogungbenro the past,
K P M G in Greece Partner Partner & Head, Consumer/Industrial present
E: epolyzoi@kpmg.gr K P M G in Markets & Transfer Pricing Services and future
Jamaica K P M G in Nigeria
Hong Kong SAR, China E: E: tayo.ogungbenro@ng.kpmg.com
Sylvene Fong rthanda@kp
Japan Makoto
mg.com.jm Navigating
Head of K P M G Private Enterprise Otani Norway a long and
Hong Kong K P M G Private Enterprise Leader Thore Kleppen winding
K P M G China K P M G in Japan Partner road
E: makoto.otani@jp.kpmg.com K P M G in Norway
India E: thore.kleppen@kpmg.no
Kalpesh Desai Kuwait
Partner Jasem Al-Qenae Oman Going down
K P M G Private Enterprise in India Manager, Audit Aqeel Al Lawati the road
E: kalpeshdesai@kpmg.com K P M G in Kuwait Partner, K P M G Private Enterprise
E: K P M G in Oman
Rohit Berry jalqenae@kpmg.c E: aqeelallawati@kpmg.com
om Eight keys for
National Head Deal Advisory Aref Judeh unlocking
K P M G in India Partner and Head of Audit Peru the
E: rohitberry@kpmg.com K P M G Private Enterprise Mariano Zegarra sustainability
K P M G in Kuwait Head of Clients & Markets of your
Ireland E: arefj udeh@kpmg.com K P M G Private Enterprise business
Olivia Lynch K P M G in Peru
Partner Malaysia E: mzegarra@kpmg.com
K P M G Private Enterprise Laikok Tai Lessons from
K P M G in Ireland Head of K P M G Private Enterprise Poland the road
E: olivia.lynch@kpmg.ie Family Business Andrzej Bernatek
Partner Partner, Tax
Camilla Cullinane K P M G in Malaysia Head of Consumer Markets Why follow
Partner, K P M G Private Enterprise E: itaI1@kpmg.com.my Head of K P M G Private Enterprise in the family
K P M G in Ireland K P M G in Poland and C E E business
E: camilla.cullinane@kpmg.ie Mexico K P M G in Poland route to
Jesus Luna E: abernatek@kpmg.pl sustainability?
National K P M G Private
Enterprise Leader Putting
Partner sustainability
K P M G in Mexico on the
E: strategic fast
jjluna@kpmg.com.mx track
Acknow ledgments
Portugal Spain
Luis Silva Miguel Angel Faura Borruey United States
National K P M G Private National K P M G Private Conor Moore
Enterprise Leader Enterprise Leader National K P M G Private
Partner Partner Enterprise Leader
K P M G in Portugal K P M G in Spain Partner Foreword
E: luissilva@kpmg.com E: mfaura@kpmg.es K P M G in the U S
E:
Qatar Sri Lanka conormoore@kpmg.co
Yacoub Hobeika Thamali Rodrigo m
Bradley Sprong
Partner Partner Head of K P M G Private Enterprise Tax
K P M G in Qatar K P M G Private Enterprise Partner E xecutive
E: yhobeika@kpmg.com K P M G in Sri Lanka K P M G in the U S
E: trodrigo@kpmg.com E: bsprong@kpmg.com S ummary
Saudi Arabia
Fuad Chapra Switzerland Uruguay Why the
National K P M G Private Hugues Salome Nicolas Ramos sustainability
Enterprise Leader Partner Director journey is a
Partner K P M G in Tax and Legal Advisory once-in-a-lifetime
K P M G in Saudi Arabia Switzerland K P M G in Uruguay opportunity
E: fchapra@kpmg.com E: E: nramos@kpmg.com
hsalome@kpmg.
Thailand
com C onnecting
Serbia Sasithorn Pongadisak Venezuela
Ivana Manigodic Head of K P M G Private Alejandro Rangel the past,
Partner, Audit Enterprise Partner present
K P M G in Serbia Partner K P M G Private Enterprise and future
E: K P M G in Thailand K P M G in Venezuela
imanigodic@kpm E: E:
g.com
Singapore sasithornn@kpmg.co.t alejandrorangel@kpmg.c
om Navigating
Jonathan Ho United Arab Emirates Vietnam a long and
Partner, National Leader, Anurag Bajpai Trãn Thanh Tâm winding
K P M G Private Enterprise National K P M G Private Head of Markets Group road
Partner Enterprise Leader K P M G in Vietnam & Cambodia
K P M G in Singapore Lower Gulf Leader E: tamttran@kpmg.com.vn
E: jho1@kpmg.com.sg Partner
K P M G in Lower Gulf Going down
South Africa E: abajpai@kpmg.com the road
Alan Barr
National K P M G Private United Kingdom
Enterprise Leader Tom McGinness Eight keys for
Partner Global Leader, Family Business unlocking
K P M G in South Africa K P M G Private Enterprise the
E: K P M G International and sustainability
alan.barr@kpmg.co.za Partner, K P M G in the U K of your
E: business
tom.mcginness@kpmg.co.uk
Lessons from
the road
Why follow
the family
business
route to
sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
About the STEP Project Global
Consortium
Foreword
The STEP Project Global Consortium is a global applied research initiative that explores family and business
practices within business families and generates solutions that have immediate application for family business
leaders.The STEP Project Global Consortium aims to be a leading global family business research project with an E xecutive
international reputation.The research insights are specifically drawn to be of relevance to developing new
theoretical insights S ummary
that can offer novel and valuable best practices recommendations to the business stakeholders and the practice
community at large. Having a global worldwide orientation, the STEP Project Global Consortium offers Why the
networking opportunities for researchers, family business owners and consultants coming from five continents. sustainability
Visit: www.spgcfb.org journey is a
once-in-a-lifetime
opportunity
C onnecting
About the KPMG Private Enterprise the past,

present
and future
Global Family Business Network
Navigating
a long and
winding
As with your family, your business doesn’t stand still — it evolves. Family businesses are unique and KPMG Private road
Enterprise family business advisers understand the dynamics of a successful family business and work with you
to provide tailored advice and experienced guidance to help you succeed. To support the unique needs of family
businesses, KPMG Private Enterprise coordinates with KPMG firms from around the world that are dedicated to
Going down
offering relevant information and advice to family-owned companies. KPMG Private Enterprise understands that the
the road
nature of a family business is inherently different from a non-family business and requires an approach that considers
the family component.
Visit: kpmg.com/privateenterprise Eight keys for

unlocking
the
sustainability
of your
business
About KPMG Private Enterprise Lessons from

the road
Passion, it’s what drives entrepreneurs; it’s also what inspires KPM G Private Enterprise advisers to help you
maximize success. You know KPMG, but you might not know K PMG Private Enterprise. KPM G Private Enterprise Why follow
advisers in KPM G firms around the world are dedicated to working with you and your business, no matter where the family
you are in your growth journey — whether you’re looking to reach new heights, embrace technology, plan for business
route to
an exit, or manage the transition of wealth or your business to the next generation. Working with KPM G Private
sustainability?
Enterprise, you’ll gain access to a trusted adviser — a single point of contact who shares your entrepreneurial
mindset. Access to KPMG’s global resources and alliance network can help you drive your business forward and Putting
meet your goals. Your success is KPM G Private Enterprise‘s legacy. sustainability
on the
Visit: kpmg.com/privateenterprise strategic fast
track
Acknow ledgments
Editorial board
STEP Project Global Consortium Foreword
Andrea Calabrò Rodrigo Basco

STE P Project Global Consortium STE P Project Global Consortium Board
Academic Director Member, Professor & Sheikh Saoud bin Khalid E xecutive
Director, IPAG Entrepreneurship & Family bin Khalid Al-Qassimi Chair in Family
Business Center Business American University of Sharjah S ummary
IPAG Business School
Rosalia Santulli Why the

sustainability
Alfredo Valentino STE P Project Global Consortium Research Champion
journey is a
STE P Project Global Consortium Assistant Professor once-in-a-lifetime
University of Genova Affiliated Researcher opportunity
Research Champion
IPAG Business School
Associate Professor
E S C E International Business C onnecting
School the past,
present
and future
Navigating
a long and
winding
KPMG Private Enterprise Global Family Business Network road
Jonathan Lavender Daniel Trimarchi Going down

Global Head Director, Family Business the road
KPM G Private Enterprise KPMG Private
KPMG International Enterprise
KPMG International and Director
Eight keys for
Family Enterprise Advisory unlocking
Tom McGinness KPMG Australia the
Global Leader, Family Business sustainability
KPMG Private Enterprise Melany Eli of your
KPMG International and Managing Director business
Partner, KPM G in the UK Strategy, Marketing and Communications
KPMG Private Enterprise Lessons from
KPMG International the road
Why follow
the family
business
route to
sustainability?
Putting
sustainability
on the
strategic fast
track
Acknow ledgments
kpmg.com/privateenterprise
kpmg.com/familybusiness
www.spgcfb.org
kpmg.com/socialmedia
The views and opinions [of external contributors] expressed herein are those of the interviewees and do not necessarily represent the views and opinions of KPMG
International Limited or any KPMG member firm.
‘KPMG’ refers to the global organization or to one or more of the member firms of KPMG International Limited (“KPMG International”), each of which is a separate
legal entity. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. For more detail about our
structure please visit kpmg.com/governance.
© 2023 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. The
KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor
to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be
accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
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Publication name: A road well-traveled — How family businesses are guiding the sustainability journey | Publication number: 138654-G | Publication date: April 2023

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A road

relevant. It increased the need for business sustainability actions are

Following a proven path sustainability performance data from our previous

Eight keys for

Tom McGinness Why follow

success The aspiration to leave a meaningful and lasting legacy

factors that adopting sustainability principles and practices is the

4 Increased number of female board

Sustainability is a step-by-step journey, and it’s

costly expertise from outside their businesses. Lessons from

8 Forward-looking orientation 1 route to

Key Some family business leaders have emphasized how

takeaway and retaining top-performing employees. These are

Because many family businesses have operated

journey is a a long and

once-in-a-lifetime Going down

Eight keys for

Improving employee health, wellbeing and working

Much like the digital revolution, the sustainability

As the originator of the ‘triple bottom line’ remarked in a

Family businesses have a rare opportunity in this

Eight keys for

Eight keys for

takeaway among family businesses for a long time and for

their customers to thrive and gaining a competitive

Sustainability is transforming the way Brad Sprong

Family businesses are well positioned to C onnecting

Eight keys for

Connecting the Navigating

past, present and winding

future Going down

Eight keys for

The main purpose of family business sustainability is to E xecutive

Beneath each of these four pillars is their continuing

Sustainability as a Corporate family

Corporate social Eight keys for

and Going down

winding Eight keys for

Eight keys for

takeaway about yourself. It’s also about your customers and

the family owners who need to be thinking about

Eight keys for

the road Going down

Eight keys for

Jorge Andres Rodriguez Lessons from

Eight keys for

Barry Group — Ireland

As is the case with many family businesses, Barry

The time had come to take a big step forward to make

company and world to

Grupo Dominguis Energy

Established in Spain in 1932, G D E S is an international Navigating

Eight keys for

done, as a force for

CAREL Industries — Italy

into the Group’s vision, strategies and operating

Eight keys for

Shepherd Neame Limited — UK

sustainability of Going down

your business the road

Eight keys for

This phenomenon is often a combination of critical mass and the E xecutive