Mission-driven companies: is it so easy to run business and impact?
A mission-based company/BCorp, advisory board, and alignment of interests in an impact-by-design company seem simple on paper. We wanted to check by asking 3 experts to tell us more: Audrey Yvert, Head of Impact at OpenClassRooms, Camille Richard, Head of Sustainability at Back Market, and Marie-Gabrielle Sorin, founder at WeEngage and Impact Operating Partner at Ring Capital.
Among the top topics discussed, here are the key takeaways to keep in mind:
being impact by design is still an iterative path: we need to keep focusing on new levers to reduce carbon emissions and guarantee diversity and inclusion;
evangelization is still the key when it comes to tackling impact topics, especially because they are more and more technical;
the measurement of impact aka KPIs is complex, even for impact by design companies: define an indicator is not an end by itself, you need to be aligned with our stakeholders
BCorp is clearly one of the best way to position your strengths and weaks and optimize.
What does a Chief Impact Officer do?
Audrey: I help ensure that our social impact is as positive as possible and our environmental impact as negative as possible. In fact, on a daily basis, I make sure that:
Inclusion and diversity are at the core of our reactor. In other words, we make sure that all OpenClassRooms employees can participate equally in the running of the company, whatever their profile, background, origin, etc.
There is also the central subject of the carbon footprint on which we must act urgently;
Finally, the subjects of certification and impact reporting. OpenClassrooms is a company with a mission statement at its core and BCorp certified, which requires a lot of internal work and awareness. As CIO, I can't do it alone, but I do support the ongoing projects.
Camille: As the person in charge of sustainable development at Back Market, I wear two hats:
the impact on the company itself. Of course, BackMarket has an environmental reason to be because we reduce the production of new electronic equipment, but just because we have a positive impact doesn't mean we shouldn't be careful. I have to make sure that we reduce the company's environmental impact, ensure that we are transparent on these issues, and guarantee that the compliance and regulatory aspects of our business are respected. As for the social impact, I primarily support HR in matters of diversity and inclusion.
the subject of the impact of Tech. A large part of my job concerns advocacy, i.e. raising awareness on this issue by coordinating scientific studies, creating content, speaking at external events, etc.
Is engaged governance (executive committee, board, etc.) a necessary condition to have an impact?
Camille: Indeed, the question of governance is key. This is where we can make the difference between a real-impact policy and greenwashing. For our companies, it's a little different because we are in a way sustainable by design. Our leaders are aligned and well aware that impact also creates more traction for candidates and goes with our growth objectives.
Sustainable objectives have been integrated into the variable part of the managers' remuneration, which makes it possible to make these commitments concrete. This does not prevent us from continuing to evangelize. There can be different levels of maturity depending on the managers, but also of knowledge. When we do this job, we tend to think that it's obvious for everyone when it's not. It's not a lack of determination, but you have to take the time to share and educate so that everyone is at the same level of knowledge.
Audrey: As Camille said, we are lucky to have committed managers, but we must continue to educate people because we are dealing with increasingly technical issues, both in terms of measuring diversity and environmental measurement. As far as governance is concerned, there is a challenge to reconcile the management's intention with bottom-up initiatives. When you have companies with strong impact cultures that attract employees because they have a social or environmental mission at the heart of their business, you often have employees who take initiatives on their own and who have their own commitment. We have to reach both!
On the employee side, sustainability/impact is a huge lever in terms of the employer brand. However, how do we ensure that everyone is on board? In other words, how do we ensure that the impact and sustainability mission is not limited to the dedicated team, but that it continues to be a collective adventure?
Audrey: There is no friction on this topic because everyone is well-aligned on the mission and it creates a lot of cohesion. At OpenClassRooms, we have the same principle as Back Market, our main impact is the number of jobs that are found by our students thanks to our training. We celebrate these successes at every team meeting. They are part of every manager's goals and it is one of the three main success KPIs (along with the financial and people KPIs). We also use the BCorp certification as a tool for internal mobilization.
Camille: Indeed, our companies attract very committed profiles, but not only. So we also have to give them a common base of knowledge. We, therefore, rely heavily on education through internal conferences on a given subject, but also through inspiring personalities such as Camille Etienne who came to speak at our offices. This is done on a voluntary basis and we try to have an activist culture through our network of ambassadors. About thirty people meet once a month to talk about bottom-up projects on social and environmental impact issues.
Mission-based company/BCorp: what has changed for you? What are the benefits of becoming one and/or the other?
Audrey: OpenClassRooms became a mission-based company very quickly because as early as 2018, before the Pact law, our founders had decided to include the purpose within the status. The idea was to report not only financially but also on social impact. The main benefits of being a "mission company" are to have this mission committee and to include the stakeholders in the definition of the objectives, which led to the creation of a board that gives us advice on our mission, and has the input of our stakeholders is very useful.
For BCorp, it is a brand that is recognized internationally. In our different markets, it helps us to explain very quickly who we are and what we do, especially in the American market.
It is also a tool for internal mobilization because we are in a Tech company where people are used to making decisions based on data. The BCorp questionnaire is filled with data that quantifies each type of impact, and what will represent this or that action. It's an excellent tool to mobilize, especially in a Tech company. To give an example, if I go and see the person in charge of suppliers and ask her "in the suppliers' charter, if you include such and such an environmental and/or social obligation, we can gain 2 BCorp points", it's a very concrete approach.
Any company can make its assessment for free on the site of BCorp! A good way to know how you are positioned.
Camille: we are still on the way to certification. For us, BCorp is a great tool for people in charge of impact to self-assess the company at the beginning of the process, and to review where the weak and strong points are. And it is the only extra-financial reporting tool that is transparent about its scale, which allows for progress. In Tech teams, it is very concrete to operate in terms of scale. It is also one of the few labels recognized by the general public and as a B2C company, it is important.
We are also a mission company since this year. The idea was really to give a framework for our growth. It opens up a philosophical subject: can you be a start-up and a company with a mission? Hence the creation of an advisory board where we share our strategies and receive advice on certain aspects of our business and our sustainable performance.
We have launched projects based on the advice of the members of our committee, which includes Valérie Guillard, a professor, and researcher in the marketing of sobriety at Dauphine University. For example, we are launching a project next semester with Dauphine students on the possibility of creating a consumer community at Back Market.
A reminder of the 4 pillars of the mission-based company:
the purpose;
the fact of having major commitments and statutory objectives ;
the mission committee: it must include stakeholders ;
the fact of being audited by an independent third-party organization.
Measuring impact may seem like a complex subject. How have you dealt with this subject? How do you identify the right indicators?
Audrey: It remains a complex subject even when you are in a Tech company. Despite a certain maturity in this area, our indicators continue to evolve and grow. For us, it's the number of jobs found by our students. Even for that, we spent a lot of time refining "what is a successful career after training at OpenClassRooms?" Does it have to be finding a job? Can it include taking another course? Is it getting a promotion in the company where you already work?". Then, we have to compare all this with the feedback from other organizations such as the investors, and the France Compétences organization which will have its own definition of career success.
On the environment, we have a metric that also triggers the managers' bonus, the carbon rate per number of students. We try to reduce this rate every year.
However, we would like to go further! We realize that this is something we can measure a posteriori, but we can't make projections. We would like to be able to have budget projections and see if we are within budget every quarter. When we reach a level of maturity, with a better understanding of our own model, where we can make realistic projections, we will be at the level of maturity we want.
Camille: You have to realize that there isn't one KPI, one indicator for everyone, you have to really adapt your reference system to your activity. You really have to adapt your benchmark to your activity. It must be able to speak to your employees, stakeholders, etc. That's why we calculate the impact of our activities on the environment.
We obviously focus on carbon, both the carbon emitted and the carbon avoided. Our ‘raison d'être’ being environmental, we are necessarily very vigilant on these subjects.
We have avoided 1 million tons of CO2 since the creation of Back Market. At the same time, our carbon footprint is growing.
This also raises the question of how to set reduction targets for an activity that is growing rapidly, because in absolute terms our emissions are bound to increase. We must therefore set a trajectory where emissions are as low as possible, in order to respect the Paris agreements, i.e. not to exceed 1.5 degrees by 2030. To achieve this, the goal is to provide quantified targets for each team and each emission item. On the calculation side, we divide the amount of CO2 avoided by the number of employees to show them that they are contributing to this outcome and that is very important.
To achieve this, the aim is to give quantified objectives by the team and by emission item. In terms of measurement, we divide the amount of CO2 avoided by the number of employees to show them that they are contributing to this result and this is very important.
1 repackaged phone: 77 kgs of CO2 avoided
Any advice to share? A condition for success?
Camille: For companies that are just starting out, the best thing to do is to start as soon as possible with an impact approach. The bigger you are, the more difficult it is to change practices. Of course use BCorp, also a book: Growth a Pie by Alex Edmans which explains that the best way to increase value is to make value for all stakeholders and not only financial assets.
Audrey: For those starting out, do what makes sense for your business model with one exception, for the environment. Start today by doing everything you can to prosper in a carbon-neutral world.