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Social Progress Index – an innovative toolkit for addressing the challenges of the 21st century Deloitte Sustainability Consulting Central Europe Impact | Economics | Relations | Transformation

Wskaźniki rozwoju społecznego istotne dla polskiej polityki rozwojowej (SPI)

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Social Progress Index –an innovative toolkit for addressingthe challenges of the 21st century

Deloitte Sustainability Consulting Central EuropeImpact | Economics | Relations | Transformation

© 2015 Deloitte Advisory Sp. z o. o. 2

Deloitte & Social Progress IndexAim of the meeting

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• Introduce the Social Progress Index as a way of measuring countries’ social and environmental progress on issues that matter most to people

• Start the debate on practical usage of the Index as a tool for policy and business leaders in:– policy-making and measuring countries’ progress– reviewing, comparing and driving regional progress (regions/ cities level)– shaping and measuring business strategies in addressing social and

environmental needs

• Relate to actionability – plan further actions by inspiring some of you to use the Index in planning and measuring your activities

© 2015 Deloitte Advisory Sp. z o. o. 3

Deloitte – „Making an impact that matters”

Deloitte Global’s strategy focus on „Making an impactthat matters” is reflected in Deloitte's strategic partnership with the Social Progress Imperative:

“Deloitte is collaborating with the Social Progress Imperative and others because we believe business has a role to pl ay in helping solve the world’s critical issues and the Index is a tool that can ignite collective action from business, government, and society.”

Steve AlmondGlobal Chairman, Deloitte Global

© 2015 Deloitte Advisory Sp. z o. o. 4

Social Progress Index and Sustainabilityclosely linked issues:

4

Social progress - “the capacity of a society to meet the basic human needs of its citizens, establish the building blocks that allow citizens and communities to enhance and sustain the quality of their lives, and create the conditions for all individuals to reach their full potential.”

Sustainable development is a "development that meets the needs of the present without compromising the ability of future generations to meet their own needs."

Sustainability – key words

© 2015 Deloitte Advisory Sp. z o. o. 5

SUSTAINABILITY

IMPACT ECONOMICS

RELATIONSTRANSFORMATION

What are we really doing?

Sustainability consulting helps organisations to realise, manage and leverage their economic, socialand environmental impacts in orderto achieve their ambitious business goalsin a sustainable and responsible way.

© 2015 Deloitte Advisory Sp. z o. o.

© 2015 Deloitte Advisory Sp. z o. o.

Sustainability portfolio

Impact analysis, measuring,

management, reporting

Integrated reporting

Improve corebusiness

performance

Stakeholder engagement

Customer engagement

SUSTAINABILITY

Ethical system review &

management

Sustainable supply chain management

Sustainabilityanalytics

Low-carbon energy

economy & energy

efficiency

Sustainabilitystrategy design, implementation

Social, environmental & reputational risk

management

Responsiblesale

Sustainabilityassurance

Energymanagement

Impact Management

ORGANIZATION

STAKEHOLDERS

Society,

Economy &

Environment

expectations

interests impacts

impacts

ENGAGEMENT

Source: Own compilation based on ISO 26 000.

In 2015, businesses will mature their strategies for monetizing sustainability trends – predicts the independent research firm Verdantix in “Hot trends in sustainability management for 2015”

Source: Verdantix Ltd., Hot trendsin sustainability management for 2015, 2015.

“Poor and insufficient information about real effects of the company’s operations leads to bad allocation of resources and often results in bad decisions”

Source: www.riotinto.com

Do you know ……In 2013, people working in seven largest Polish cities stuck in traffic jams lost on average PLN13.1m PLN per day, which is PLN289m per month and PLN3.46bn per year

Source Deloitte.

© 2015 Deloitte Advisory Sp. z o. o. 8

Vision 2050: The New Agenda for Business in Poland

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• The Polish Vision 2050 was developed in response to the global initiative "Vision 2050. The new agenda for Sustainable Development" put forward by the World Business Council for Sustainable Development.

• Nearly 100 top companies in Poland signed the Declaration of Polish Businesses for Sustainable Development.

Vision 2050: The New Agenda for Business in Poland

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Social Progress Imperative #socialprogress

TITLE HERE DATE/LOCATIONOTHER

SOCIAL PROGRESS INDEX

Michael GreenWarsaw Innovation Days, 15 th June 2015

Social Progress Imperative #socialprogress

Economic Development

GDP per capita

Social Progress

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THE PARADIGM OF NATIONAL DEVELOPMENT HAS BEEN THAT ECONOMIC DEVELOPMENT MEASURED BY GDP WILL LEAD TO S OCIAL PROGRESS.

THE DUAL CHALLENGES OF DEVELOPMENT: INCLUSIVE GROWT H

Social Progress Imperative #socialprogress

BUT SOMETIMES THAT LINK IS MISSING.ECONOMIC DEVELOPMENT DOES NOT ALWAYS LEAD TO SOCIAL PROGRESS…

Economic Development

GDP per capita

Social Progress

13

THE DUAL CHALLENGES OF DEVELOPMENT: INCLUSIVE GROWT H

Social Progress Imperative #socialprogress

…AND SOMETIMES SOCIAL PROGRESS INFLUENCES ECONOMIC DEVELOPMENT.

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Economic Development

GDP per capita

Social Progress

THE DUAL CHALLENGES OF DEVELOPMENT: INCLUSIVE GROWT H

Social Progress Imperative #socialprogress

TO UNDERSTAND INCLUSIVE GROWTH WE NEED TO MEASURE S OCIAL PROGRESS DIRECTLY

Social Progress

?

15

THE DUAL CHALLENGES OF DEVELOPMENT: INCLUSIVE GROWT H

Social Progress Imperative #socialprogress

SOCIAL PROGRESS INDEX: DESIGN PRINCIPLES

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Outcomes – not inputs

Actionability

Relevant to all countries

Exclusively social and environmental indicators

Social Progress Imperative #socialprogress

THE SOCIAL PROGRESS FRAMEWORK

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Social Progress Imperative #socialprogress

SOCIAL PROGRESS INDEX FRAMEWORK INDICATORS 2015

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Basic Human Needs Opportunity

Nutrition and Basic Medical Care

� Undernourishment

� Depth of food deficit

� Maternal mortality rate

� Child mortality rate

� Deaths from infectious diseases

Water and Sanitation

� Access to piped water

� Rural access to improved water source

� Access to improved sanitation facilities

Shelter

� Availability of affordable housing

� Access to electricity

� Quality of electricity supply

� Indoor air pollution attributable deaths

Personal Safety

� Homicide rate

� Level of violent crime

� Perceived criminality

� Political terror

� Traffic deaths

Access to Basic Knowledge

� Adult literacy rate

� Primary school enrollment

� Lower secondary school enrollment

� Upper secondary school enrollment

� Gender parity in secondary enrollment

Access to Information and

Communications

� Mobile telephone subscriptions

� Internet users

� Press Freedom Index

Health and Wellness

� Life expectancy

� Premature deaths from non-

communicable diseases

� Obesity rate

� Outdoor air pollution attributable deaths

� Suicide rate

Ecosystem Sustainability

� Greenhouse gas emissions

� Water withdrawals as a percent of

resources

� Biodiversity and habitat

Personal Rights

� Political rights

� Freedom of speech

� Freedom of assembly/association

� Freedom of movement

� Private property rights

Personal Freedom and Choice

� Freedom over life choices

� Freedom of religion

� Early marriage

� Satisfied demand for contraception

� Corruption

Tolerance and Inclusion

� Tolerance for immigrants

� Tolerance for homosexuals

� Discrimination and violence against minorities

� Religious tolerance

� Community safety net

Access to Advanced Education

� Years of tertiary schooling

� Women’s average years in school

� Inequality in the attainment of education

� Globally ranked universities

Social Progress Index

Foundations of Wellbeing

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Social Progress Imperative #socialprogress

SOCIAL PROGRESS INDEX VS. GDP PER CAPITA (PPP)*

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Social Progress Imperative #socialprogress

SOCIAL PROGRESS INDEX VS. GDP PER CAPITA (PPP)*

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NOR

Social Progress Imperative #socialprogress

SOCIAL PROGRESS INDEX VS. GDP PER CAPITA (PPP)*

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CAF

NOR

Social Progress Imperative #socialprogress

SOCIAL PROGRESS INDEX VS. GDP PER CAPITA (PPP)*

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NZL

CAF

NOR

Social Progress Imperative #socialprogress

SOCIAL PROGRESS INDEX VS. GDP PER CAPITA (PPP)*

23

NZL

MWI

CAF

NOR

Social Progress Imperative #socialprogress

SOCIAL PROGRESS INDEX VS. GDP PER CAPITA (PPP)*

24

NZL CAN

MWI

CAF

NOR

Social Progress Imperative #socialprogress

SOCIAL PROGRESS INDEX VS. GDP PER CAPITA (PPP)*

25

NZLGBR

CAN

MWI

CAF

NOR

Social Progress Imperative #socialprogress

SOCIAL PROGRESS INDEX VS. GDP PER CAPITA (PPP)*

26

NZL

USAGBR

CAN

MWI

CAF

NOR

Social Progress Imperative #socialprogress

SOCIAL PROGRESS INDEX VS. GDP PER CAPITA (PPP)*

27

NZL

USAFRA

GBRCAN

MWI

CAF

NOR

Social Progress Imperative #socialprogress

SOCIAL PROGRESS INDEX VS. GDP PER CAPITA (PPP)*

28

NZL

USAFRA

GBRCAN

BRA

MWI

CAF

NOR

Social Progress Imperative #socialprogress

SOCIAL PROGRESS INDEX VS. GDP PER CAPITA (PPP)*

29

NZL

USAFRA

GBRCAN

BRA

ZAF

MWI

CAF

NOR

Social Progress Imperative #socialprogress

SOCIAL PROGRESS INDEX VS. GDP PER CAPITA (PPP)*

30

NZL

USAFRA

GBRCAN

BRA

RUSZAF

MWI

CAF

NOR

Social Progress Imperative #socialprogress

SOCIAL PROGRESS INDEX VS. GDP PER CAPITA (PPP)*

31

NZL

USAFRA

GBRCAN

BRA

RUSZAF

CHN

MWI

CAF

NOR

Social Progress Imperative #socialprogress

SOCIAL PROGRESS INDEX VS. GDP PER CAPITA (PPP)*

32

NZL

USAFRA

GBRCAN

BRA

RUSZAF

CHN

IND

MWI

CAF

NOR

Social Progress Imperative #socialprogress

SOCIAL PROGRESS INDEX VS. GDP PER CAPITA (PPP)*

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NZL

KWT

USAFRA

GBRCAN

BRA

RUSZAF

CHN

IND

MWI

CAF

NOR

Social Progress Imperative #socialprogress

SOCIAL PROGRESS INDEX VS. GDP PER CAPITA (PPP)*

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NZL

KWT

USAFRA

GBRCAN

CRI

BRA

RUSZAF

CHN

IND

MWI

CAF

NOR

Social Progress Imperative #socialprogress

SOCIAL PROGRESS DOES INCREASE WITH GDP PER CAPITA B UT IT IS NOT THE WHOLE STORY

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KWT

CRI

BRA

ZAF

IND

MWI

CAF

NORUSA

FRA

NZLCANGBR

RUS

CHN

Social Progress Imperative #socialprogress

SOCIAL PROGRESS ATTRACTS AND DEVELOPS WITH FDI:

THE RELATIONSHIP WORKS IN BOTH DIRECTIONS

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Rising social progress attracts foreign direct investment: • Important for FDI are

quality of life factors, such as tolerance and inclusion – help attract international workforce

FDI can be used to drive further social

progress:

• Direct through investment in healthcare and education

• Indirect through employment and higher income

Rising social progress attracts

FDI:

• Important for FDI are quality of life factors, such as tolerance and inclusion

• These factors help attract international workforce

FDI Social Progress

Source: Deloitte UK

Social Progress Imperative #socialprogress 37

SPI rank

SPI score

CountrySPI rank

SPI score

Country SPI rank

SPI score

Country SPI rank

SPI score

Country

1 88.36 Norway 18 81.91 Portugal 35 74 Lithuania 52 68.19 Albania

2 88.06 Sweden 19 81.62 Slovenia 36 73.66 Mauritius 53 67.79 Macedonia

3 87.97 Switzerland 20 81.17 Spain 37 73.3 Croatia 54 67.5 Mexico

4 87.62 Iceland 21 80.82 France 38 73.08 Argentina 55 67.23 Peru

5 87.08 New Zealand 22 80.59 Czech Republic 39 72.79United Arab

Emirates56 67.1 Paraguay

6 86.89 Canada 23 80.49 Estonia 40 72.6 Israel 57 66.34 Thailand

7 86.75 Finland 24 79.21 Uruguay 41 71.79 Panama 58 66.24 Turkey

8 86.63 Denmark 25 78.45 Slovakia 42 70.89 Brazil 59 66.15Bosnia and

Herzegovina

9 86.5 Netherlands 26 78.29 Chile 43 70.19 Bulgaria 60 65.89 Georgia

10 86.42 Australia 27 77.98 Poland 44 69.83 Jamaica 61 65.7 Armenia

11 84.68United

Kingdom28 77.88 Costa Rica 45 69.79 Serbia 62 65.69 Ukraine

12 84.66 Ireland 29 77.7Korea, Republic

of46 69.55 Malaysia 63 65.64 South Africa

13 84.45 Austria 30 77.45 Cyprus 47 69.19 Kuwait 64 65.46 Philippines

14 84.04 Germany 31 77.38 Italy 48 69.01 Montenegro 65 65.22 Botswana

15 83.15 Japan 32 74.8 Hungary 49 68.85 Colombia 66 64.98 Belarus

16 82.85 United States 33 74.12 Latvia 50 68.37 Romania 67 64.92 Tunisia

17 82.83 Belgium 34 74.03 Greece 51 68.25 Ecuador 68 64.31 El Salvador

Social Progress categorization:• SPI rank 01 – 10: very high

• SPI rank 11 – 31: high

• SPI rank 32 – 56: upper middle

• SPI rank 57 –98: lower middle

• SPI rank 99 – 125: low

• SPI rank 126 – 133: very low

2015 SOCIAL PROGRESS INDEX RESULTS

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Social Progress Imperative #socialprogress 38

SPI rank

SPI score

CountrySPI rank

SPI score

Country SPI rank

SPI score

Country SPI rank

SPI score

Country

1 88.36 Norway 18 81.91 Portugal 35 74 Lithuania 52 68.19 Albania

2 88.06 Sweden 19 81.62 Slovenia 36 73.66 Mauritius 53 67.79 Macedonia

3 87.97 Switzerland 20 81.17 Spain 37 73.3 Croatia 54 67.5 Mexico

4 87.62 Iceland 21 80.82 France 38 73.08 Argentina 55 67.23 Peru

5 87.08 New Zealand 22 80.59 Czech Republic 39 72.79United Arab

Emirates56 67.1 Paraguay

6 86.89 Canada 23 80.49 Estonia 40 72.6 Israel 57 66.34 Thailand

7 86.75 Finland 24 79.21 Uruguay 41 71.79 Panama 58 66.24 Turkey

8 86.63 Denmark 25 78.45 Slovakia 42 70.89 Brazil 59 66.15Bosnia and

Herzegovina

9 86.5 Netherlands 26 78.29 Chile 43 70.19 Bulgaria 60 65.89 Georgia

10 86.42 Australia 27 77.98 Poland 44 69.83 Jamaica 61 65.7 Armenia

11 84.68United

Kingdom28 77.88 Costa Rica 45 69.79 Serbia 62 65.69 Ukraine

12 84.66 Ireland 29 77.7Korea, Republic

of46 69.55 Malaysia 63 65.64 South Africa

13 84.45 Austria 30 77.45 Cyprus 47 69.19 Kuwait 64 65.46 Philippines

14 84.04 Germany 31 77.38 Italy 48 69.01 Montenegro 65 65.22 Botswana

15 83.15 Japan 32 74.8 Hungary 49 68.85 Colombia 66 64.98 Belarus

16 82.85 United States 33 74.12 Latvia 50 68.37 Romania 67 64.92 Tunisia

17 82.83 Belgium 34 74.03 Greece 51 68.25 Ecuador 68 64.31 El Salvador

Social Progress categorization:• SPI rank 01 – 10: very high

• SPI rank 11 – 31: high

• SPI rank 32 – 56: upper middle

• SPI rank 57 –98: lower middle

• SPI rank 99 – 125: low

• SPI rank 126 – 133: very low

2015 SOCIAL PROGRESS INDEX RESULTS

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Social Progress Imperative #socialprogress

BENCHMARKING SOCIAL PROGRESS RELATIVE TO PEERS

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• We define a country’s economic peers as the 15 countries closest in GDP PPP per capita. In order to reduce the influence of year-to-year fluctuations in GDP data, a four-year average is used (2010-2013).

• Each country’s performance is compared to the median performance of countries within the peer cohort.

• If the country’s score is greater than (or less than) the average absolute deviation from the median of the comparator group, it is considered a strength (or weakness). Scores are within one average absolute deviation are within the range of expected scores and are considered neither strengths nor weaknesses (neutral).

www.socialprogressimperative.org

Strengths and weaknesses are relative to 15 countries of similar GDP: Relative Strength n/a – no data available

Neutral

Relative Weakness

POLAND

Score Rank Score Rank Score Rank

BASIC HUMAN NEEDS 86.67 34 N FOUNDATIONS OF WELLBEING 77.19 24 N OPPORTUNITY 70.07 26 N

Nutrition and Basic Medical Care 99.18 23 N Access to Basic Knowledge 97.67 24 N Personal Rights 80.95 25 N

Undernourishment (% of pop.) 5.0 1 N Adult literacy rate (% of pop. aged 15+) 99.8 1 N Political rights (1=full rights; 7=no rights) 1 1 N

Depth of food deficit (cal./undernourished person) 8 1 N Primary school enrollment (% of children) 96.6 42 N Freedom of speech (0=low; 2=high) 1 15 N

Maternal mortality rate (deaths/100,000 live births) 3 3 N Lower secondary school enrollment (% of children) 98.3 56 N Freedom of assembly/association (0=low; 2=high) 2 1 N

Child mortality rate (deaths/1,000 live births) 5.2 29 N Upper secondary school enrollment (% of children) 97.1 34 N Freedom of movement (0=low; 4=high) 4 1 N

Deaths from infectious diseases (deaths/100,000) 22.6 22 N Gender parity in secondary enrollment (girls/boys) 1.0 67 W Private property rights (0=none; 100=full) 60 30 N

Water and Sanitation 93.67 46 N Access to Information and Communications 85.67 21 N Personal Freedom and Choice 75.41 27 S

Access to piped water (% of pop.) 98.0 30 N Mobile telephone subscriptions (subscriptions/100 people) 150.0 1 N Freedom over life choices (% satisfied) 85.5 29 S

Rural access to improved water source (% of pop.) n/a Internet users (% of pop.) 62.8 37 N Freedom of religion (1=low; 4=high) 4 1 N

Access to improved sanitation facilities (% of pop.) 89.5 64 W * Press Freedom Index (0=most free; 100=least free) 11.0 16 S Early marriage (% of women aged 15-19) 0.02 26 N

Satisfied demand for contraception (% of women) 60.1 83 W

Corruption (0=high; 100=low) 61 26 N

Shelter 70.96 56 W Health and Wellness 59.37 112 W Tolerance and Inclusion 59.23 45 N

Availability of affordable housing (% satisfied) 24.6 126 W Life expectancy (years) 76.8 38 N Tolerance for immigrants (0=low; 100=high) 51.1 93 W

Access to electricity (% of pop.) 100.0 1 NPremature deaths from non-comm. diseases (prob. of dying) 20.0 82 N Tolerance for homosexuals (0=low; 100=high) 24.7 58 N

Quality of electricity supply (1=low; 7=high) 5.5 38 N Obesity rate (% of pop.) 23.2 92 WDiscrim. and viol. against minorities (0=low; 10=high) 4.1 24 S

Household air pollution attr. deaths (deaths/100,000) 36.0 46 N Outdoor air pollution attributable deaths (deaths/100,000) 64.8 116 W Religious tolerance (1=low; 4=high) 3 36 N

Suicide rate (deaths/100,000) 16.1 111 W Community safety net (0=low; 100=high) 91.2 19 S

Personal Safety 82.86 21 S Ecosystem Sustainability 66.06 23 N Access to Advanced Education 64.67 25 N

Homicide rate (1= <2/100,000; 5= >20/100,000) 1 1 N Greenhouse gas emissions (CO2 equivalents per GDP) 446.8 4 N Years of tertiary schooling 0.7 37 N

Level of violent crime (1=low; 5=high) 2 20 N Water withdrawals as a percentage of resources 1.3 59 W Women's average years in school 13.1 21 N

Perceived criminality (1=low; 5=high) 2 2 S Biodiv. and habitat (0=no protection; 100=high protection) 91.8 21 N Inequality in the attainment of edu. (0=low; 1=high) 0.06 29 N

Political terror (1=low; 5=high) 1.5 23 N Number of globally ranked universities 6 20 N

Traffic deaths (deaths/100,000) 11.8 41 N

Hungary, Lithuania, Russia, Malaysia, Kazakhstan, Estonia, Chile, Croatia, Latvia, Slovakia, Portugal, Turkey, Greece, Uruguay, and Romania

GDP per capita rank: 36

Social Progress Index rank: 27/133 Social Progress Index score: 77.98

www.socialprogressimperative.org

Strengths and weaknesses are relative to 15 countries of similar GDP: Relative Strength n/a – no data available

Neutral

Relative Weakness

FROM INDEX TO ACTION TO IMPACT

Social Progress Imperative #socialprogress42

National Development Plan Assumptions:Economic Growth: 6.8% per year

•GDP per capita 2014: 5,289 SPI 2014: 62.65

•GDP per capita 2030: 11,572 SPI 2030: 69.15

THE NATIONAL DEVELOPMENT PLAN IN PARAGUAY ADOPTS SPI AS ITS OFFICIAL METRIC

Social Progress Imperative #socialprogress

SOCIAL PROGRESS INDEX FOR THE BRAZILIAN AMAZON

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Social Progress Imperative #socialprogress44

Carauari

MUNICIPALITY OF CARAUARIPopulation: 27,645 (70% urban, 30% rural)Life Expectancy: 61.45 years

• Carauari is one of the main producersof rainforest products (such as acai) inthe Coca-Cola and Natura valuechains.

• Identified by Amazon Social ProgressIndex as one of the most deprivedmunicipalities in the region.

• But Coca-Cola and Natura require amore granular analysis of the needs offarmers; specific communities withinCarauari municipality.

• Coca-Cola and Natura partnered withIpsos to create a community needssurvey, based on Social ProgressIndex framework, comparing urbanand rural communities.

• Will be the basis of a sustainable

A TOOL FOR BUSINESS: COCA-COLA AND NATURA IN CARAUAR I

Social Progress Imperative #socialprogress

NOW EXPANDING INTO EUROPE…AND NORTH AMERICA

45

Social Progress Imperative #socialprogress

SPI IS A TOOL FOR PRACTICAL ACTION BECAUSE IT COMPLE MENTS ECONOMIC MEASUREMENT

46

Social Progress Imperative #socialprogress

THANK YOU!

[email protected]

@shepleygreen

@socprogress

www.socialprogressimperative.org

47

© 2015 Deloitte Advisory Sp. z o. o. 48

Why do policy-makers and business leaders should drive social progress and economic development?

How can the SPI help them to solve social issues and promotesustainable growth?

Panel discussion

© 2015 Deloitte Advisory Sp. z o. o. 49

DeloitteContact

IRENA PICHOLAPartner, Leader of SustainabilityConsulting Central Europe

[email protected]

RADOSŁAW KUBAŚDirector in Public Sector & Infrastructure Team/Real Estate

[email protected]