In a short span of five or six years, CHANEL embraced CSR (corporate social responsibility) and ESG (environmental, social, governance) initiatives that stretched far beyond its established comfort zone of artistic direction and creative output. The progression of these initiatives culminated in March 2020, when the company launched CHANEL Mission 1.5°, a strategy for embarking on a decarbonization journey across the business as well as the value chain. In keeping with the timeframe of the United Nations Sustainable Development Goals (SDGs), the “1.5°” represented the commitment to help limit average global mean temperature increases to 1.5 degrees Celsius above pre-industrial levels. Entering the 2020s, Global CFO Philippe Blondiaux felt confident that CHANEL was primed to execute on its vision and usher in a “decade of delivery” in sustainability. The Group was about to transform every aspect of its business; help its partners do the same; innovate at every point in the value chain; and support change beyond its own operational footprint. Yet a host of challenges loomed on the road ahead: (1) Could an industrial group that was highly decentralized continue to spearhead initiatives and shape an integrated sustainability strategy? (2) In addition to creating a cultural glue and a shared sense of inspiration and purpose, could accountability trickle all the way down the organization with a worldwide workforce of nearly 28,000? (3) In the long term, was the company in a position to live up to the commitments it had encapsulated in the CHANEL Mission 1.5° document, and was there sufficient clarity on what the sustainability push would mean in the long run for CHANEL, as a luxury brand, as we know it?
Not so black and white: Grupo Inca’s black alpaca dilemma (A)
Summary
Grupo Inca, a conglomerate that owned Peru’s leading textile business with a long history of working with alpaca fleece, was at a crossroads regarding the conservation and commercialization of black alpaca fiber. Historically, black alpacas were as common as their lighter-colored counterparts, but market preferences drove them to near extinction. The Inoue brothers, fashion designers committed to social impact, expressed an interest in creating a luxury collection using rare black alpaca fiber. This presents Grupo Inca with both an opportunity and a dilemma: Should it invest in developing this niche market despite uncertainties of both supply and demand, or collaborate with local government and NGOs to ensure sustainable practices, or maintain its current direction and do nothing? This compact case explores the intricacies of actions vs. impact, ethical responsibility and long-term strategic thinking. It provides a rich context for discussing the impact of business decisions on biodiversity and sustainability, the role of corporate values in guiding strategy and the potential for innovation in sustainability. Students will explore Grupo Inca’s role in the decline of black alpacas, assess the ethical implications of the company’s actions and develop strategic recommendations through scenario planning. The accompanying teaching note also covers methods to leverage AI tools to generate ideas and explore solutions that enhance students’ learning.
Reference
IMD-7-2609
Copyright
©2024
Copyright owner
IMD Copyright
Organization
Grupo Inca
Industry
Manufacturing, Textile
Available Languages
English
Contact
Research Information & Knowledge Hub for additional information on IMD publications
‘Defiant Optimism’ is what is needed to bring about a more sustainable, inclusive world
Summary
We need to rethink traditional models of finance if we are to achieve a sustainable and inclusive future, argues Durreen Shahnaz, founder & CEO of Impact Investment Exchange (IIX).
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Don’t ignore the S in ESG: a strong social strategy is essential
Summary
Here’s how your company can meet regulatory requirements and the expectations of sustainability indexes.
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Research Information & Knowledge Hub for additional information on IMD publications
Pasona: Well-being through regional revitalization
Summary
Pasona Group, a Japan-based human resources company, is committed to driving social change through business and supporting individuals to find "ikigai” (fulfillment) through work. The company has promoted flexible work and equitable workplaces and created employment opportunities for minorities. Pasona now wanted to tackle the overconcentration of population and businesses in Tokyo and the related decline of rural areas; both issues raised questions of well-being and sustainability. In response, Pasona moved its headquarters from Tokyo to Awaji Island, setting up sales and back-office operations for its core business and launching the "Regional Revitalization" initiative. Employees who moved from Tokyo to Awaji said that their lives became more sustainable, and their well-being improved. On the other hand, some Tokyo-based employees chose not to relocate, worried that boundaries between work and personal life would be blurred. Pasona was also criticized for its tourism-oriented and corporate-driven approach to local development, while the local government of Awaji appreciated the increase in the population and tax revenue that Pasona had brought. As Pasona sought to expand its "regional revitalization" model throughout Japan and attract more local governments to partner with the company, it needed to rethink its strategy to develop its original model in Awaji into a more powerful showcase that would lead to a more decentralized and sustainable society while ensuring the well-being of its own employees.
Reference
IMD-7-2573
Copyright
©2024
Copyright owner
IMD Copyright
Organization
Pasona Group
Industry
Business Management Services, Human Resources
Available Languages
English
Contact
Research Information & Knowledge Hub for additional information on IMD publications
Decathlon’s circular revolution: Scaling sustainable business models
Summary
The case focuses on Decathlon’s journey from 2023 onwards as it seeks to scale its circular business models and transform from a successful pilot phase to large-scale industrialization. Anna Turrell, Decathlon’s chief sustainability officer, is tasked with achieving ambitious growth targets – to increase circular sales by 6 to 10 times. The case details how Decathlon approached its circularity strategy by expanding second-hand, repair, rental and recycling initiatives across its global operations. It highlights the strategic challenges Anna and her team faced in deciding where to focus their scaling efforts across regions, sports segments and business models. Key enablers of the scaling strategy, including digital transformation, reverse logistics, consumer engagement and strategic partnerships, are explored as critical factors for success. As Decathlon moved toward becoming a global leader in circularity, Anna had to overcome operational complexities and encourage consumer behavioral change while balancing financial goals with sustainability objectives. Despite the clear business potential, the challenge remained of how to scale circularity efficiently across diverse markets and sports while creating a seamless customer experience.
Reference
IMD-7-2599
Copyright
©2024
Copyright owner
IMD Copyright
Organization
Decathlon
Industry
Consumer Goods, Sports Equipment
Available Languages
English
Contact
Research Information & Knowledge Hub for additional information on IMD publications
Mastercard 2023: Rewired for infinite optionality
Summary
In the 2010s, card processing – Mastercard’s flagship service – started showing signs of commodification as new, nimble players (typically, fintech startups thriving on digital) entered the payment processing space, and customer preferences evolved beyond plastic cards and traditional contact payments. To re-energize its central position and its ability to capture value, Mastercard – as the incumbent – had to make bold decisions. The case details Mastercard’s approach to conceptualizing and building a global platform ecosystem that upholds the principles and design elements of modularity (i.e. interoperability and scalability) and optionality. Today, Mastercard's services, based on application programming interfaces (APIs), integrate with a variety of platforms and offer flexibility to businesses that require customized payment solutions. All along, the company has accommodated a high level of internal disruption.
The case also explores the nature of Mastercard’s systematic collaboration with fintechs – players that often started out as competitors in specific parts of Mastercard’s value chain. It describes the company’s engagement with fintechs as fostering collaboration and co-creation and facilitating access; in other words, opening doors and sharing tools with partners. The case presents observations and quotes by CEO Michael Miebach, whose career trajectory at Mastercard – spanning Africa & Middle East experience, fintech partnerships, product management and the CEO role – sheds additional light on the philosophy and values that have driven the company’s transformation to a technology powerhouse and self-described original fintech.
Reference
IMD-7-2455
Copyright
©2024
Copyright owner
IMD Copyright
Organization
Mastercard
Industry
Finance and Insurance, Financial Services
Available Languages
English
Contact
Research Information & Knowledge Hub for additional information on IMD publications
Sustainability needs more than technology. This leadership framework might be the answer
Summary
As global attention has turned to Azerbaijan’s capital, Baku, for the U.N.’s ongoing COP29 climate summit, many business leaders are at a crossroads about how they can pitch in on the green transition. Adding to the uncertainty, Donald Trump’s ele...
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La Marzocco: Espresso perfection
Summary
In July 2024 Guido Preti, La Marzocco’s sustainability manager, was preparing his three-year plan to combine La Marzocco’s ESG program with that of its new owners, the De’Longhi Group. Since its inception in 1927, the company had relentlessly sought to produce the perfect espresso machine through exceptional craftmanship, user centric designs and technology innovation. The company had grown from an artisanal builder of high-end professional coffee machines to a global player selling over 40,000 espresso machines a year to both professionals and consumers around the globe. In December 2023, De’Longhi Group announced the establishment of a global hub for professional coffee machines that brought together La Marzocco and Eversys. One particularly tricky question was how to align La Marzocco’s famed ESG reporting and sustainability program with that of De’Longhi Group while maintaining its best-place-to-work culture.
Reference
IMD-7-2603
Copyright
©2024
Copyright owner
IMD Copyright
Organization
La Marzocco
Industry
Manufacturing, Machinery
Available Languages
English
Contact
Research Information & Knowledge Hub for additional information on IMD publications
Ragn-Sells: From company in crisis to circular sustainability champion
Summary
This case highlights Ragn-Sells’ remarkable journey from facing financial difficulties to establishing itself as a global authority on the circular economy and sustainability. In 2015, Pär Larshans joined the Swedish waste management company during a period of financial uncertainty, prompting a re-evaluation of its business strategy. Through a comprehensive trend scouting process, Ragn-Sells identified key opportunities within mega trends, notably focusing on planetary boundaries and the Sustainable Development Goals (SDGs), which became central to its future direction. Over nearly a decade, Ragn-Sells underwent a profound transformation and cultural shift. It pioneered innovative approaches such as recycling phosphorus and other nutrients from waste instead of mining them, thereby contributing to a more sustainable and circular economy. Early recognition of its efforts followed, with Ragn-Sells being honored as an “Innovation of Leadership” ambassador for the SDGs in 2018 and invited to present its achievements at the UN in New York. Leveraging this recognition, Larshans embarked on a mission of knowledge sharing, utilizing public speaking engagements and early adoption of LinkedIn to promote Ragn-Sells' innovative solutions and foster collaboration. Looking ahead, Larshans contemplated Ragn-Sells’ next steps, exploring emerging mega trends beyond the SDGs and formulating strategic plans for continued success.
Reference
IMD-7-2567
Copyright
©2024
Copyright owner
IMD Copyright
Organization
Ragn-Sells Group
Industry
Utilities, Recycling
Available Languages
English
Contact
Research Information & Knowledge Hub for additional information on IMD publications
Who is GenAI leaving out, and does it matter?
Summary
More than 80% of organizations will be using GenAI by 2026. Addressing bias in these systems must become a priority to avoid acute organizational and societal risks, says a forthcoming white paper by IMD, Microsoft, and Ringier.
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Research Information & Knowledge Hub for additional information on IMD publications