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Is corporate sustainability as we know it finally at an end? Are traditional green business strategies failing to the point of doing more harm than good?
Probably not completely. But the growing number of sustainable business leaders calling for a rethink of these measures suggests a tipping point is near.
For those of us who never thought that business and the markets that shape it alone could solve the growing threat of climate change, this perception is outdated.
But it’s not easy. There may not be enough time to overturn capitalism, but there is plenty of time to push for market reform in ways that allow businesses to move more quickly on climate action.
So it’s reassuring to see a growing recognition that the status quo isn’t working.
Or, as Lindsay Hooper and Paul Gilding of the venerable Cambridge Institute for Sustainability Leadership put it in a paper this month, “Question the founding principles and dominant approaches of the corporate sustainability movement. It’s time to embrace it.”
The University of Cambridge-based institute is a prominent figure in the corporate greening field, having received support from Royal Conservationist Patron Charles III for most of its 36-year history. is.
But as Hooper and Gilding point out, despite years of corporate green initiatives and a surge in investment in clean technology, “the sustainability crisis is deepening.” .
Worse, companies and their sustainability advisors may be giving the false impression of progress and slowing down “the fundamental changes needed in markets and the policies that constitute them.” It could be making the problem even worse.
They argue that companies should not only set targets to reduce their own carbon emissions, but also start lobbying for sweeping, long-term rules that reshape entire markets.
First, this approach should reduce the competitive risks that green business pioneers often face.
From Shell’s weakening of its climate targets to Volvo’s postponed sell-by date for its all-electric cars, another big win this year has been revealed by green companies’ U-turns.
Such backtracking highlights the fact that sustainability efforts are still seen as discretionary steps taken by personally committed leaders and easily reversed when times get tough.
Another sustainability veteran, John Elkington, said last month: “We must become less reliant on the goodwill and good citizenship of individual business leaders, both of which are vulnerable to sustainable efforts.” It can be the foundation.”
Elkington knows what he’s talking about. He coined corporate sustainability ideas such as “triple bottom line” reporting, which measures social, environmental and financial performance. But as he wrote last month, sustainability is no longer just about transforming business. “Market transformation is also becoming increasingly important.”
A more scathing voice about the dangers of relying on green leaders comes from sustainability campaigner Jonathan Pollitt, who has spent years advising large companies including Unilever.
The consumer goods giant rolled back targets on measures such as plastic use and recycling after appointing new chief executive Hein Schumacher last year, disappointing environmentalists.
His approach is significantly different from that of former Unilever executives such as Paul Polman, who impressed investors who didn’t approve of our sustainability efforts by telling them, “Don’t put money into my company.” different.
“Unilever’s downfall has revealed deep flaws in the entire concept of corporate sustainability as the primary driver of more sustainable wealth creation and distribution,” Pollitt said.
So, will it change much? perhaps. Last week’s New York Climate Week also saw a lot of discussion about the need for stricter regulations.
Regulators could significantly reduce carbon emissions from buildings by setting stricter standards, Jess Munk-Hansen, CEO of Danish insulation maker Rockwool, said at an event. spoke.
Mr. Hansen, a former executive at Osram Lighting Group, said government regulations had facilitated the transition from incandescent bulbs to more energy-efficient lighting.
As he later told me, “If building regulators made more use of tools such as higher energy efficiency standards, it would go a long way in helping the green transition.”
He’s right. Regulators and governments can do more, and some companies are urging them to do so. However, these companies are still in the minority. For corporate sustainability to create a more sustainable world, more people need to join them.
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