Meet Teanne von der Porten, Executive Director, ESG Advisory Services KPMG Canada, who joins me on the mic with an interview that pulls apart ESG letter-by-letter and then puts it back together again with a clear articulation of the modern imperatives that every retailer needs to understand and master to be the employer of choice, and compete and win with today's consumers.
Welcome to The Voice of Retail podcast. I'm producer & host Michael LeBlanc, and this podcast is produced in conjunction with the Retail Council of Canada.
Meet Teanne von der Porten, Executive Director, ESG Advisory Services KPMG Canada, who joins me on the mic with an interview that pulls apart ESG letter-by-letter and then puts it back together again with a clear articulation of the modern imperatives that every retailer needs to understand and master to be the employer of choice, and compete and win with today's consumers.
Thanks for tuning into this episode of The Voice of Retail. If you haven't already, be sure and follow on your favourite podcast platform, so new episodes will land automatically every Friday. And check out my other retail industry media properties, America's top podcast Remarkable Retail with Steve Dennis and the Global eCommerce Leaders podcast. Last but not least, if you're into barbecue, check out my YouTube barbecue show, Last Request Barbecue.
I'm your host, Michael LeBlanc, Growth Consultant & keynote speaker. If you want more content or to chat, follow me on LinkedIn.
About Teanne
Teanne is an Executive Director at KPMG Canada’s ESG Services practice, as well as the practice’s Regional Consumer and Industry ESG Lead and a member of the Retail Council of Canada’s ESG Working Group. She has over 20 years of experience across industries and has deep expertise in driving engagement and collaboration in all areas of ESG, climate change, and sustainability. In her current role at KPMG Canada’s ESG Services practice, Teanne helps clients develop and enhance ESG strategies, roadmaps and disclosures, and address ESG risks and opportunities.
About Michael
Michael is the Founder & President of M.E. LeBlanc & Company Inc. and a Senior Advisor to Retail Council of Canada and the Bank of Canada as part of his advisory and consulting practice. He brings 25+ years of brand/retail/marketing & eCommerce leadership experience with Levi's, Black & Decker, Hudson's Bay, Today's Shopping Choice and Pandora Jewellery.
Michael has been on the front lines of retail industry change for his entire career. He has delivered keynotes, hosted fire-side discussions with C-level executives and participated worldwide in thought leadership panels. ReThink Retail has added Michael to their prestigious Top Global Retail Influencers list for 2023 for the third year in a row.
Michael is also the president of Maven Media, producing a network of leading trade podcasts, including Canada's top retail industry podcast, The Voice of Retail. He produces and co-hosts Remarkable Retail with best-selling author Steve Dennis, now ranked one of the top retail podcasts in the world.
Based in San Francisco, Global eCommerce Leaders podcast explores global cross-border issues and opportunities for eCommerce brands and retailers.
Last but not least, Michael is the producer and host of the "Last Request Barbeque" channel on YouTube, where he cooks meals to die for - and collaborates with top brands as a food and product influencer across North America.
Michael LeBlanc 00:05
Welcome to The Voice of Retail Podcast. I'm producer and host Michael LeBlanc and this podcast is produced in conjunction with Retail Council of Canada. Meet Teanne von der Porten, Executive Director, ESG advisory services, KPMG Canada, who joins me on the mic with an interview that pulls apart ESG letter by letter, and then puts it back together again with a clear articulation of the modern imperatives that every retailer needs to understand and master to be the employer of choice and compete and win with today's consumers.
Teanne, welcome to The Voice of Retail podcast, how are you doing this afternoon?
Teanne von der Porten 00:37
I'm doing great. Thanks so much, Michael, how are you doing today?
Michael LeBlanc 00:40
I am wonderful. I'm happy to have you on the mic. We had a couple of little Gremlins over the past week, but we have solved them. You sound amazing. So, we're all set. We are ready to go and looking forward to this for literally for, for several weeks. So, thanks again for joining me on the mic. Let's start at the beginning. Let me, tell us, tell the listeners a little bit about yourself and what you do for a living.
Teanne von der Porten 01:04
Thanks. I'm super happy to be here. So, thanks very much for having me on your podcast. This is very exciting.
I am the Executive Director for ESG services at KPMG Canada, and also the Regional Consumer and Retail Industry Lead. I'm also a member of the Retail Council of Canada ESG working group and I have about 20 years of experience working across industries, mostly developing and enhancing strategies and roadmaps to addr-, to address ESG and climate related risks and opportunities.
Michael LeBlanc 01:34
Now you have, looking at your LinkedIn, you have a deep background in, in ESG. How did you find yourself in that path, I mean, sometimes they present the opportunity presents itself like did you, were you always interested in this broad topic or did you just kind of find your way, looking at the opportunity and the and the evolution and the, and the, the development of this category like you know, when you're in school did you want to be in business if we start there and just talk about that a little bit.
Teanne von der Porten 02:00
Actually, when I was in school, I had always had a fascination for environmental issues. So, I did get my first graduate degree in environmental studies with a business and sustainability specialty but then when I started working for a large food retailer at the time, I realized very quickly that you can't do much with just an environmental perspective for business to actually elicit change in business, you have to speak the language.
So, I went back and did my MBA and I found it was a really great combination of having both the environmental studies background as well as the business background so that you could sell your points clearly to leadership in an organization. I started more on the carbon trading side of things and kind of worked my way through energy policy over to the retail side and did some real estate as well and then worked for an ESG risk rating provider as well. So, I definitely have many different perspectives from different angles. So, I think that's really helps us develop my, our team here at KPMG.
Michael LeBlanc 03:05
Well, it's super interesting, right, I mean, you know, a generation ago, there was not your job and I mean, that's why just kind of, I'm just kind of delving into a little bit of your background just for people to understand how you developed your expertise. Let's talk briefly about KPMG, you know, everybody, I can't imagine many people would not know of KPMG, but they may not know the scope and scale, particularly in Canada, and then zero in on the on the ESG practice, what does that look like and what's its scope and scale?
Teanne von der Porten 03:33
KPMG is a global organization providing audit tax and advisory services and in Canada, we have 47 offices and almost 10,000 employees now and provide services for 2,400 retailers in Canada and 76% of the retail sector companies on the fortune 1000 in US, making us the leading provider to the retail sector in Canada and globally. In particular, in ESG we have about 1000 SMEs globally who provide ESG and climate transformation and value creation support as well as reporting and assurance services to help companies at every stage of their ESG journey.
Michael LeBlanc 04:12
Nice and, and for the listeners the SME is a Subject Matter Expert, right, have I got that right?
Teanne von der Porten 04:16
That's right. Sorry, there's a lot of acronyms.
Michael LeBlanc 04:18
You're a SME. Well, let's, let's talk about, let's talk about another acronym three letters, big scope. Let's take it a letter at a time, ESG, break it down for us because, you know, it's one of those terms that I think everyone has heard but let's put some definition and let's put some parameters around it.
Teanne von der Porten 04:35
Sure. So, E is Environmental Issues and those could be anything from climate change, sustainable products, sustainable packaging, water waste circularity. S is Social. So, there, any issues related to communities, diversity, equity and inclusion, talent and culture, human rights, labor practices, for example, and the G is the Governance. So, looking at issues there such as corporate governance, ethical behavior, risk management's, business resilience and privacy and data security.
Michael LeBlanc 04:48
All right, so let's, let's, let's take one on and a little bit with a follow up question for each. So the environmental like, there's a lot of work going on, we see it in the paper every day, it's kind of a eclectic, and some a little bit esoteric around environmental policy, how much of your work is on advising and your team advising on compliance to the money, governmental, I mean, it's municipal, provincial, and federal. So, let's be glad you have 47 offices because it's very complex, you know, stakeholder relations, and just, just, you know, laws compared to leadership to get ahead and benefit with their customers. So, talk about the environmental practice a little bit.
Teanne von der Porten 05:46
Sure, I care about, our work involves both the, on the compliance side and the strategy side, compliance regimes and climate disclosure standards have not yet been finalized. However, many companies come to us to understand and really get ahead of compliance regulations and requirements and then on the other hand, companies also reach out for support on other ESG and climate objectives, for example, to develop climate strategies to determine gaps in best practices, things like that, as well. So I'd say it's definitely a good balance of both. Sometimes compliance gets them in the door, and then we help them on the strategy side as well.
Michael LeBlanc 06:26
Right. So sometimes compliance keeps them out of trouble, but that's just kind of a starting point, right, that's kind of like-
Teanne von der Porten 06:30
It's more of a starting point to really understand any major blind spots that a company has.
Michael LeBlanc 06:35
Right, do you see that as, as, I mean, there's table stakes, and then there's the differentiators. Do you see, where do you see that fitting in, I mean, I guess at one point, it's just table stakes, but can you be a differentiator, and in ESG, and particularly around the environment?
Teanne von der Porten 06:51
I think you can be a differentiator, 100% and it's interesting, because I would say a lot of the clients that we're getting right now are very curious to see what their stakeholders are expecting in terms of investors, community, customers, and more increasingly, their employees, but there's also a lot of interest in seeing what their peers are doing. So, I find we do a lot of gap analysis on how the current company is performing based on their own performance in comparison to peers. So then, once they see those gaps, I think it's up to the client understand whether they want to be part of that path and go with them, or do they want a stand out and go above and beyond that to really the best practices and industry and we help clients determine what those best practices are for their industry and help them figure out what ambition level they're interested in achieving.
Michael LeBlanc 07:44
Oh, I like that the ambition level I mean, whether you want to be a fast follower or a leader, right, there's, there's
Teanne von der Porten 07:49
Yeah, exactly.
Michael LeBlanc 07:50
There's, there's money or capital or personal capital to be spent in both. Let's talk about Social for a bit. How is how is the social positioning of firms working for retailers and you know, retailers are every day tell me that finding and keeping great people is, is important, and culture starts, you know, above compensation, they all kind of adjust compensation and do what they need to do, but what are you seeing and what are you hearing in terms of, you know, being a good social actor, is playing, what role is that playing, do you think, with employ-, retailers and acquiring and retaining their their people?
Teanne von der Porten 08:24
Resear-, research has actually shown that it is a big component of it. Employee retention has been correlated with corporate sustainability. A recent MIT article stated that embedding climate and sustainability across an organization in its decision making can improve employee retention and talent, attraction, as well as employee satisfaction. So really, what we're seeing is the bottom line, is that companies aligned with personal values are being sought as employers, as well as companies who value diversity, equity, inclusion and wellbeing.
Michael LeBlanc 08:59
Right. So, the people are migrating more to those with to be employers of choice and part of being an employer of choice is to have that, you know, those that element kind of both well buttoned down but-
Teanne von der Porten 09:10
Underlying values.
Michael LeBlanc 09:11
Yeah, and well-articulated too, right. I mean, I mean, that's part of the challenge is how do you articulate it and not look like you're I don't know, what's the right word boasting, right, how do you establish that I'm sure you hear that from, from your clients is I want to be, I want to make sure I'm where I need to be, but I also don't want to brag about it, because then it off, it feels like it takes backwards is that Is that a fair statement?
Teanne von der Porten 09:34
Yes, that's a fair statement and I think maybe the word you're not trying to say is green-washing and there's definitely a lot of media attention on that right now of what companies should be saying or what they are saying in comparison, which is what they're actually delivering.
So what we encourage companies and clients to do is definitely to be cautious of what you are saying, and stay away from more of that storytelling up in the sky sort of conversations and focus more on what are your actual targets, what are your metrics, what do you actually believe in and how are you demonstrating that you are doing what you say you're doing.
So, on the employee equity and diversity side, if you say that you really believe in DEI and then you look at their reports, and you realize, no, this is actually there's no diversity in leadership, then you're not actually practicing what you preach. So, it's good to always make sure what you're stating, you're backing it up with evidence.
Michael LeBlanc 10:33
Let's pivot a little bit to talk about sustainability. We're all trying to get our arms around it in one way shape or another. Sometimes it's one step forward, two steps back and in between science and what we do and you know, initiatives that you call, you know, you mentioned green-washing but you know, we worry about initiatives that don't take in the full lifecycle, maybe too simplistic and yet, if it's too complex, it kind of overwhelms consumers. Like, do we understand what our North Star is, the, the point of arrival and sustainability? How do you think about that?
Teanne von der Porten 11:02
Our ultimate North Star is attaining the world's most important climate goal, which is limiting the Earth's warming to 1.5 degrees Celsius. So actual progress and change to meet this target in terms of a lower carbon or net zero transition should be in business plans.
Michael LeBlanc 11:19
Well, let's, let's unpack those business plans a little bit around sustainability initiatives. I mean, there's, there's both focus on how retailers do business with their partners and how they do business with the consumer. So, what are the key initiatives for retailers that will actually make a difference, move to that North Star, you know, is electrifying the delivery fleet, is it achievable, is it a worthy goal, do we understand, is electric truly better than, you know carbon, gas, fast chargers for consumers in parking lots to encourage EV's, like what really matters and what are you hearing and what's your advice?
Teanne von der Porten 11:53
Three key initiatives that make a difference to partners and consumers. You're correct. The first one is EV chargers in retailer parking lines, really, with 74% of new car sales in North America predicted to be electric by 2040. Accommodating this will be increasingly important to retailers. There are case studies that have shown that retail dwell times increased due to EV charging sessions and provided increased revenue. So that is addressing both on the partner side and on the consumer side in terms of addressing customers evolving expectations of having charging as an amenity, and also progressing towards the low carbon economy and improving retail brand value and revenue.
Teanne von der Porten 12:32
A second initiative is replacing physical samples with digital tools. So, we're definitely seeing a move towards digitalization. Businesses can produce less waste by implementing augmented reality, for example, to help consumers make more informed but less wasteful purchasing decisions. For example, there's apps to virtually visualize products in your home or try on clothes, things like that and a third one, I would say is disclosing repairability ratings, as we've seen in France. So, that's transitioning away from planned obsolescence and support a more circular economy by encouraging wholesale suppliers and retail companies to introduce a repair rating. So that would be really as part of the products labeling for tech products, for example, such as smartphones and TVs showing how repairable that item is.
Michael LeBlanc 13:21
hmm, that's an interesting one. You know, I got to think the whole rewiring, literally and figuratively, of how we power our automobiles, it's gotta be something lots of retailers are thinking about because, you know, I was in LA a couple of weeks ago, and, you know, I was looking at four or five people, some are working out, some are, you know, had their laptops open, all waiting to get their car charged, and it's really, you know, even convenience stores are going to be just restructured, right, you must be very busy on that, that one single element of the file, yeah?
Teanne von der Porten 13:51
Definitely. Electrification is a huge issue and it's definitely part of the transition to a lower carbon economy.
Michael LeBlanc 13:58
Now, a couple of retailers actually, this week, I think, on both sides of the border here, and in the US announced the first electric vehicles in their in their fleet in terms of distribution, like in the supply chain, right, these big vehicles that are now and I think Tesla's got some and some other providers, are you are you optimistic that we can actually make a dent in the next foreseeable future with, with that kind of electrification of the supply chain?
Teanne von der Porten 14:21
Well, I do not have my crystal ball in terms of how big of a dent we'll make but for sure, changing the fleets own fleets over to electrification will make a big dent in retailers own greenhouse gas emissions footprint, because transportation is such a big part of emissions for retailers in the supply chain, but definitely looking at how to convert their fleets to electric vehicles will make a big difference.
Michael LeBlanc 14:49
Yeah, interesting, right. All right. Well, let's, let's talk about consumers for a bit. You know, consumers talk a big game around sustainability. They say it's important in all the surveys, but you know, they do continue to shop from certain online retailers with highly questionable sustainability track records. How do we, how do we square this circle? This is not new, by the way. I mean, I was in the disposable cup business 30 years ago and, you know, we were talking about how consumers some made decisions solely on environmental issues, some couldn't care less and that, you know, where that bell curve was moving to the, you know, making decisions with environmental issues in, inside or wrapped around that decision. How do you, how do you see this, this, it's not new, but how do we explain this paradox and consumer attitudes and behaviours, and do you see it changing over time enough to really, you know, really make it meaningful for retailers?
Teanne von der Porten 15:43
That's, I've actually heard the same comment throughout my career as well as one half of the world will say people won't spend more money for it, even though they want it and the other half says, it's so important to us that we will spend more money on this, but I don't actually think there is a paradox and there are some recent reports, produced by First Insight in the Baker Retailing Center at the Wharton School of the University of Pennsylvania, where the Gen Z consumer has now outsized influence on their Gen X parents and the boomer grandparents when it comes to sustainable shopping.
Teanne von der Porten 16:17
So, 90% of Gen X consumers said that they would be willing to spend an extra 10% or more for sustainable products, which has grown tremendously in the last two years. So, Gen Z's influence will only increase as the younger members of this cohort grow into adulthood. So, what we are predicting is that by 2030, Gen Z will represent a larger portion of the world's income, probably between 20 and 30%, surpassing millennials. So that will, I think, continue to drive that there will be a continued focus on purchasing sustainable products.
Michael LeBlanc 16:55
Yeah, I mean, I guess recycling, re-, full circle retail also falls in that right where I mean, Canada Goose just announced, for example, they started to a product where they're going to resell vintage, or used Canada Goose jackets, so they're kind of getting in the game. So that's probably a good, a good indicator of some positive momentum for sure.
Michael LeBlanc 17:16
Last question for you, two starts, it's kind of a three part question, I guess, last question two starts, one stop advice for retailers when it comes to ESG, that's a big question for you but you know, when you say listen, if you're not doing maybe you're doing these things, or kind of, you gotta start doing these things and the stop advice is more like maybe it doesn't work anymore or maybe it's something you commonly see and you say, you know, maybe you shouldn't do more of this, any thoughts on that?
Teanne von der Porten 17:44
I'd say do assess ESG and climate related risks and opportunities as soon as possible if you haven't already started along that journey. For example, evaluate the circular economy as a revenue model that minimizes resource use and waste, second, do assess additional ways to connect with consumers with the changing socio-economic landscape. So, as we mentioned, EV, charging stations, also things such as product refill stations, and more transparent product labeling and tracing and I would say do more of, instead of stop but ensure ESG and climate claims are clear, accurate, substantiated, and verifiable. So really, an example of that is to try and establish and enforce an internal process on ESG claims, including how they can be made and who's responsible and accountable for those claims.
Michael LeBlanc 18:37
And-
Teanne von der Porten 18:38
Sorry, go ahead.
Michael LeBlanc 18:39
Oh, no and I was gonna say and, and show more than tell, I mean, basically, which was your advice earlier and right, it's, in other words, to avoid looking boastful, just say, listen, here's, here's examples of what we're talking about, versus a long, long report that maybe a few people will, will read but, you know, it's essential, but at the same time, you know.
Teanne von der Porten 19:00
Exactly. Stick to the facts, and less storytelling.
Michael LeBlanc 19:04
Stick to the facts and less storytelling. There you go, I like that.
Teanne von der Porten 19:08
And I would say, for all of these KPMG's definitely here to help you regardless of whatever stage you're at in your ESG journey.
Michael LeBlanc 19:14
Well, that's, that's a good segue into my last question, where can listeners go to get in touch with you or learn more about, about what KPMG is doing, are you a LinkedIn person, is that a good way to get a hold of you?
Teanne von der Porten 19:24
I am on LinkedIn and I'm always happy to chat with anyone and our KPMG, ESG webpage lists our services in our context as well and we have a lot of thought leadership and some help there for you as well. So definitely check us out on our webpage, and you can find me on LinkedIn.
Michael LeBlanc 19:41
All right, well, I'll put links to both of those in the show notes, too and thanks so much for joining me on The Voice of Retail podcast, always an interesting discussion. You've got a fascinating background, I think right for the time and doing interesting work. So, congratulations, continued success to you and the team and thanks again for joining me on the podcast.
Teanne von der Porten 19:59
Thank you so much for having me, Michael. It's been a pleasure.
Michael LeBlanc 20:02
Thanks for tuning into this episode of The Voice of Retail. If you haven't already, be sure to follow on your favorite podcast platform so new episodes will end automatically every Friday, and check out my other retail industry media properties. America's top retail industry podcast, Remarkable Retail with Steve Dennis, and the Global E-commerce Leaders podcast. Last but not least, if you're into barbecue, check out my YouTube barbecue show, Last Request Barbecue.
I'm your host Michael LeBlanc, growth consultant and keynote speaker. If you want more content or want to chat, follow me on LinkedIn.
Until then, safe travels everyone.
SUMMARY KEYWORDS
ESG, retailers, KPMG, consumers, retail, business, sustainability, companies, climate, podcast, understand, people, products, bit, Canada, retail industry, Gen Z, big, fleets, LinkedIn