♪ francine: it is ranked as one of the top companies in the world to work for, and its products are used by two billion of us every day. in just over five years since becoming ceo, paul polman has with ailever's course positive impact on the environment. in an exclusive interview, i speak with him about sustainability, cop 21 and what it takes to be a good leader. thank you so much for speaking to bloomberg. there is a lot of talk about sustainability? what is your biggest hope? paul: i'm very confident that we

, first of all, have an agreement. we have 169 targets. in this decade, we have seen a few forces coming together. planetary boundaries shifting. nearly every week, you see a , andter hitting our planet in terms of our scarce resources. we see poverty and migration issues in europe. all of these problems are what is being addressed. which is how do we alleviate poverty and a more sustainable and equitable way. business wants to be part of that. no business is making a case of enduring poverty. if the societies don't function, it is difficult for business to function as well. francine: it looks good to say that. are you confident businesses will really translate? paul: if you go back to the real weson for business is that

hope to solve some of the problems out there in society. the problems are food security, access to water, and climate change. although there are challenges, at the same time they are , enormous opportunities to invest behind. technology allows us to do that. and funding ultimately has to come from business. business is about 60% of global gdp. 80% of the financial flow. 90% of the job creation these days. so if business does not get involved, i do not think we will even achieve these objectives. and responsible business people increasingly realize, not only from a moral or humanity point of view that this is good for business. francine: why is a good for business? you look at our business and tackle the issue of climate change you probably see , high volatility and supply. you might not have supply as it moves around the world, that your business model is put at risk. you can see enormous parts of the world where people are not participating.

in these parts of the world, you cannot sell your products. businesses increasingly see that it just makes sense to help be part of the solution. francine: they do see it, but the problem is that it is often longer term. right? when you have shareholders, you have pressure. and capitalism needs to be inclusive. but, again, is there a certain momentum that you think businesses mean business now? and want this to change instead of four or years ago. fivepaul: often shareholder pressure is confused with the short term. i think we should put these two apart. there is a short-term pressure which certainly isn't healthy. , the average length of a company's life is 18 years. a lot of companies run themselves on quarterly profits or guidance they give, and it results, sometimes in this , functional decisions. if you want to solve these issues of food insecurity, employment climate change, , access to water, then obviously it requires a long-term goal.

this long-term is in the interest of shareholders. provided you are a long-term shareholder. we make long-term decisions in our factories, where the payout comes out in five or 10 years. or our i.t. systems, which are investments in people. why not invest in something more important, which is humanity and our planet. increasingly, businesses see good reasons to do that. the technology is there. the financing as they appear the opportunities are there. actually, the alternatives of not doing it is starting to cost business more. when you have parts of the world -- let's take the drugs in sao paulo, not long ago. where their water reserves are only one third what they should be. which is not a really good situation. the hydro dams do not give good electricity. people do not have water. when they do not have water, they don't take the showers, they don't wash their hair, their electricity stops a few times during the day, if you have ice cream cabinets like us. so business sees the cost of

these failures earlier than anyone else. solutions to avoid this often are enormous business opportunity. the people who go to bed hungry are an opportunity to grow the market for food. 160 million people we have an , enormous opportunity to provide nutrition for these people. these are really business opportunities. francine: in paris, do you think this year we will get an agreement? paul: you will get an agreement in paris. and the reality is a lot of work has happened. we had good discussions for financing and the development. in fact, we should not forget that even today, the deadline is the first of october. when these countries can put in their individual national determined contributions. or indc's. awful word, but that's what it is. we currently already have 58 countries that have submitted, and these 58 countries is 70% of the carbon emissions. we are waiting for some big

countries like brazil and india, there is some encouraging noise coming from there. i was in brazil three weeks ago. i was in india a few months ago. so we are waiting for that. what you see in the submissions that are being done, that we can more or less get to 30% or 40% of what i believe is needed. there has never been an agreement, globally, in the first place. let alone an agreement for 30% or 40%. frankly, that is more than anybody have thought. francine: you would be happy with 30% or 40%? paul: no, that is a starting point. the agreement in paris will probably make a commitment like the g7 did when they were in germany of net zero emission by the end of the century. which i think is too late. that let's at least have a point. that is very important for business. once that clear agreement is reached, business has a framework to invest against. and investments accelerate this to a carbon free society. francine: why are you confident we will have agreement? it has taken us, what, seven

years? paul: this is called 21. -- this is cop 21. 21 stands for something. suddenly, we have realized it is time to move. we never thought the effects as much as we are seeing them now. francine: coming up, we continue the conversation on sustainability. i challenge the ceo of unilever over consumer choices , responsible purchasing power, and the bottom line. paul: it is our duty as ceos in this world to set an example and be sure that we are not given by the shareholder primacy. that we are driven by the needs of these consumers. francine: back in a few minutes with more on that exclusive conversation with unilever ceo paul polmon.

♪ francine: in 2015, unilever was

awarded the top ranking prize in the sustainability leaders' survey for the fifth consecutive year. paul polman, the ceo of unilever, speaks to me exclusively about how this has shaped the business. do you believe that for example, , your customers want a company that is more sustainable? --ave always been told actually some of your rivals -- say that everybody would love a shampoo that does good, but when it comes to choosing the shampoo that gives you glossy hair or does good, we always tend to choose the one that gives us glossy hair. paul: i would not disagree with the sentence, but it is not the right comparison. obviously, you need to provide a product that performs, you need it at a cost that is affordable. that is the job of any industry. once you have done that, consumers differentiate. would you want to buy from the company that has child labor in its value chain? would you want to buy from a company that does not have sustainable practices? would you want to buy from a

company that is more of a problem, contributes to the issues of society? increasingly, with the benefit of the transparency of the internet, individuals are able to separate. we see that in our own company. the expectations also go up. this is a moving thing. 10%example, we moved from sustainable sourcing of our agricultural basic materials up to 55%. it is a tremendous improvement, we've done this five times in last five years. francine: why? paul: because we have put a new business model in place. we put our emphasis on that. we have seen the importance of closer in our value chain. being closer in our value chain. to ensure it is a more equal value chain. we have made changes in our business model, but, even though you have done five times more in the last five years than the previous 100 years, let's say, the expectations of consumers go

up again. it is fine that you have better wages in your value chain, or better conditions, but are these conditions good enough? it is a continuous, moving playing field. francine: and this is, you think, because of social media and the fact that people share more information? is there an age group that is maybe more militant in wanting these kind of sustainability goals? paul: if you see in the absence of government that the world has become so interdependent, it is very difficult for government to work under a system. where some good institutions, the time, were designed at a time when 80% of the world was in europe and u.s. now that the world is much more global, we have seen a shift to the south and east. these institutions have not really adjusted. that is why we have the challenge in global governance. but it is a challenge for all of us. it is not really to blame the politicians for that. what you really see is that to step up and

de-risk of the political process. what you see a citizens in this world, but wealth might be concentrated in a few people. which is not good. 70% of the citizens of this world have access to a mobile phone. over half of them have access to the internet. 40% to 50% of the phones are smartphones. increasingly, they realize they are connected. a norma's movements are happening that actually drive change. there are many examples of that. the group that really drives it were actually the millennials. ,f you ask of the millennials very few, actually, a minority want work for a big corporate , because of an issue of trust or transparency. the same they would say about government. so people will not be able to attract the talent if they don't make a responsible business model. millennials also say it is fine. that we have a certain level of well-being, but what i'm looking for is more meaning. a little bit more purpose. they tend to look and seek out companies that have that purpose. so putting that business model in place, like we did with

unilever's sustainable living plan, a resulted in us being the third most looked up company on linkedin after google or apple. we get one million people applying to us every year. then, we look at the people who come in, in the engagement scores we get. we see that it is driven by a positive business model. so attracting the right people, energizing the right people are key ingredient for long-term success of a company. then having more goals out there that you share with society in transparency. what is your water footprint? what is your carbon footprint? not only makes that -- makes you more accountable because of that transparency, but it also gives more information to the financial markets, in which case there is a lower risk for them. and probably a lower cost of capital, which ultimately results in a higher return as well. francine: not many people understand that. when you talk about a purpose

-build business model, does this come from you that you always been passionate about? does it come at a turning point? when you realized this has to be done for myself and my business? paul: i always felt that we are not sitting here for ourselves. the role of business is to serve society. is how it started. in victorian britain, one out of two babies did not make it past the age of one because of issues of hygiene. the issues have just moved to sub-saharan africa or india. i think that it is our duty as ceos in this world to set an example and be sure that we are not driven by the shareholder primacy but that we are ultimately driven by the needs of the consumers. and if we cater to them very well, business will perform. as unilever have shown that.

francine: you must be disappointed that not more ceos think like you? paul: you should not sit here and get frustrated by the attitudes of others or the speed with which things move. you should just continue to focus on bringing the right people together, creating these tipping points, and moving these barriers. sometimes, yes, you would think why can we move faster? why aren't more people doing this? but who am i to judge? the better thing is to show that we can have a business model where we do well, but also do good for our shareholders and all the other stakeholders. the more we do that, the more we see other people enroll. ceo has of a drastically changed the last few years. one of the reasons that you see short tenure of ceos, which is now 4.5 years for the fortune companies, is really because a lot of the ceos are not equipped for the challenges of today's world. so you cannot -- francine: which are what? paul: more complex, faster moving. issues of water, energy, food. you know, you squeeze a balloon

on one side and it pops out on , the other side. the need to work in partnership is not something that comes that easy to everybody. you need to navigate the field s of government and civil society. having a longer-term view when there are lots of pressures on you that would point you to the shorter term. some people have more capability to move these boundaries or overcome that than others. you need to help each other. we have a lot of initiatives. francine: next, we continue the conversation with paul polman, the ceo of unilever, about leadership and key values. paul: to me, a leader is not just because we happen to have this job. i also think a leader is not leads --ly someone who a good leader these days is somebody who leads from the back like a shepherd with the sheep. francine: more from that exclusive interview, next. ♪

♪ francine: welcome back to leaders with me, francine lacqua. unilever is ranked as one of the top companies in the world to work for. its products are used by two billion of us, every day. in the final part of my conversation with paul polman, we discuss leadership. not: leaders, to me, are related to a level in the company or a title. for example, the medical community that immediately went to west africa, that wrist their lives to fight ebola, those are real leaders. i work a lot with the blind and deaf, people who put themselves 24 hours for the availability of these people with disabilities. at pittance compensation. those are real leaders. the teachers in schools.

and often, in fact the teachers , and nurses, these people who are real leaders that positively impact others, are undervalued , strangely enough. so, to me a leader is not just because we happen to have this job. i also think a leader is not necessarily only somebody who leads from the front. a good leader in today's world probably leads more from the back than the front, like a shepherd does with his sheep. ultimately, i hope they say that they do not like or love me, but i hope there would be a respect. because ultimately, i think the jobs that we do these are very challenging jobs. it also means most of the decisions you are involved in are-- our decisions -- decisions that are not that easy. that have pluses and minuses. otherwise, they would not arrive at you. you tend to not make friends. if you try to make friends, you will not do your job very well. if you want a friend, get a dog. often you make tough decisions. without having all of the facts. that is why it is so important to be purpose driven.

that is probably the only beacon that you can have. your own true north to help you navigate an increasingly more volatile environment. francine: how much do you think about the world? about making the world a better place? do you remember -- was it a day age did you what think it was important to think about the generations ahead? paul: i was born after the second world war. i had to work very hard, because university and a lot of things were deprived for my parents. they wanted to help their six children and give them a better future. to have peace in europe. they were tremendously involved in community activities. they met in boy scouts. we continued all of that. i have always felt that the purpose we are here for is to help each other. i wanted to be a priest or doctor. life sometimes goes in a different direction. i end up in business, but i find that in a company like this, i can make as much of a positive influence, and sometimes even more than anything else.

, so, it is all about leadership. at the end of the day, it is all about positively influencing others. if you can do that in your own way wherever you are, you are a , leader. francine: what do you look for in the managers that you are bringing up in the company? is it empathy? is it respect? how do you choose? paul: well, there are a number of values that you have. at any level leadership, there is a certain level of intelligence you need. in today's world, next to tech or other things that you know, i think you want people in this world that have a high level of awareness with issues that are going on. not only a high level of awareness, but to be able to engage themselves. ultimately, that is what counts. and do that increasingly so with a high level of humanity and humility. i think those will probably be better leaders. these are leaders that obviously need to have new skills in this world like systemic thinking, , how do you put this complexity together? distill it to simplicity and

drive it into action. leaders that can work in partnership, that understand it is not about them but about that, and good that ties us all. leaders that take a little more of a longer-term view and our -- are purpose driven. i think there are many of them. as i've said many times, we are short of leaders and trees in the world. the more we can create, the better will be. francine: how do you create? this is things you don't learn in textbook. paul: you do not do that in textbooks, but you can identify people who come in. for example, we have a lot of social entrepreneurs that we attach to our business model. they really bring in a fresh way of thinking. we created the unilever young social entrepreneur award with the prince of wales. we have 800 or 900 people applying every year. we get a lot of strength from that. in any the projects that we do, we want to work with a partnership. we do not really do anymore small projects.

be at the small farmers or be it the social compliance in your value chain, or be it working with your partners to get a sustainable sourcing, we really try to put these partnerships in place. with the dutch development agency, organizations like unicef, it keeps us honest, because this is a moving thing. we do not have all the answers. we certainly cannot do it alone. we also have to be sure that in the approach of creating value across the total value chain and being sure that everybody is included and that there is more equitable and sustainable wealth we want to create, that everybody is protected. and that can only be done if you work in partnership. i firmly believe that. francine: is there another ceo or a big influence in your life that you admire? paul: there are many people that you admire. the answers you normally get is to look at the nelson mandelas or rosa parks. where they tell you is these are

the people who are driven by a strong sense of purpose. if a person like rosa parks can change the face of racial segregation in the u.s., then any individual in their own circle can create difference. what you have to do is encourage it. we have a lot of efforts in place. our training programs have been adapted. we work with these foundations. career paths have been changed conventional career paths. versus the conventional career paths. bring in examples from other companies. there are many ceos. that gives us courage. but ultimately what gives ask urge to do what we do -- and it should be true for everybody -- is that we realize why we do this. ultimately we do this because we actually belong to a very small percentage of the population. which i estimate to be about 2%. that was actually educated. that has a comfortable job. that can do what they want, work in places where they want. they do not have to about their families or if they have jobs. but that is not true for the other 98%.

i firmly believe that it is our duty to put ourselves to the service of the other 98%. i think the moment in life that you really become a leader, whatever level you are wherever , you are in the world, whatever function or job, is when you discover that it is not about yourself. francine: do you think capitalism as a whole in three years will be more inclusive? paul: i hope so. what you have seen is there's nothing wrong with capitalism. we have all these big debates about capitalism. it is just a word. this year, we have a unique opportunity. in fact, with the sustainable developing goals to alleviate poverty. and with these climate change negotiations in paris to never have to deal anymore with the issue of climate change, if we decide to do so. actually, we have the tools to do it in the next 15 years. we do not have to send anyone to mars. so how can we drive the morality out? inclusive capitalism is not about laws, rules or

regulations. in fact, they probably in most cases do more harm than good. it is about us all rising to a challenge that is bigger than each of us. francine: paul polman, thank you so much. paul: thank you. francine: thank you. ♪

♪ emily: he got his start in west philadelphia, working for the fresh prince himself, and later biggie, and p. diddy. his breakthrough came in 2007, when he met a woman the world would come to know as lady gaga. troy carter helped take gaga from unknown to multiplatinum, then brought in his job title from talent manager to tech investor, betting on spotify and uber. but his own path to hollywood was unexpected, coming from a tough neighborhood, with a father who did time for murder. proof, he says, you write your own future. joining me today on "studio 1.0," founder and ceo of atom factory, tro