The World Economic Forum Annual Meeting happened as scheduled in Davos this year with some of the world’s most influential business leaders, public figures, civil society and academia to set out a vision on what economic growth looks like within today’s shifts to purpose-led operations [1-3].
Set to a media background covering mass protests at a coal mine in Lützerath, Germany, major profits from oil companies or even private jets arriving in Zürich for this world conference set the stage to what was happening at Davos: odds combined with reality – yet there are several takeaways from the summit that highlights how change is happening.
With back to back UN conferences focused on climate change (COP27) and the protection of biodiversity (CBD COP15) held at the end of 2022, sustainability has been a key talking point for decision-makers. While COP27 yielded mixed results, the CBD COP15 set a landmark deal to protect 30% of the world’s natural areas by 2030 by investing in blue and green economies that favor environmental protection [2, 4]. This is backed by a shift by major industrial sectors and a range of economic benefits governments are passing down to sustainable businesses [3, 5]. Having sustainability feature so heavily at Davos, only serves to reiterate how economies are being adapted to work with the environment, not against it.
Small and Medium Enterprises (SMEs) have increasingly sought to future-proof their business by implementing sustainable operations, of which collaboration is one of their biggest tools [6]. With Davos emphasizing a shift at the top, it can facilitate pathways to sustainability for SMEs. “Large corporates must also play a part when it comes to supporting SMEs in skills-building, especially around digitization and helping create the ecosystem for environmental transition, including unlocking financing,” explains Agility Chairperson Henadi al-Saleh [7], “SMEs are the bedrock of developed and developing economies. They are at the heart of economic growth strategies for most emerging markets looking to climb the development curve.”
While collaboration between SMEs and major companies can certainly fast-track sustainability, SMEs are faster and more nimble than international businesses when it comes to implementing change [8]. Experts at Davos unveiled a report highlighting the need for faster regulations from governments to enable big businesses to shift faster, but also to protect and promote how SMEs are finding innovative ways of implementing sustainable solutions using private funds [3, 5].“There is clearly a gap in supply and demand for finance,” highlights Caribbean Climate-Smart Accelerator CEO Racquel Moses [9], “There is growing interest from across the private sector to improve the resilience of communities at the front lines of the climate crisis [and] lead to long-term growth.”
From the protests at Lützerath to panel discussions at Davos, climate activist Greta Thunberg highlighted how climate action is playing a key role in societal behavior. Purpose-led businesses are helping create a more sustainable future, and upcoming generations are more and more educated as to the risks posed by the current economic status quo [1-3]. Young people are demanding change and are following through. The inherent risk for companies not following sustainability trends or greenwashing will be more costly than the cost of their transition [10, 11]. Consumers are changing, businesses must adapt, and as the first three takeaways highlight, there is an appetite for it at all levels and readily available avenues to explore.
Have you thought about how you can level-up your business to become more sustainable?
[1] Vincent Diringer, 2022, “Purpose-Led, Value-Driven – What else?”, LEAD-WiSE.
[2] Vincent Diringer, 2023, “The Global Biodiversity Goal Promoting Purpose-Led Businesses”, LEAD-WiSE.
[3] Tom Idle, 2023, “Davos 2023: 5 Takeaways for Companies Engaged in the Climate Fight”, Sustainable Brands.
[4] Vincent Diringer, 2022, “What is the United Nations Climate Conference, COP?”, LEAD-WiSE.
[5] The Economist, 2023, “The Dispatch: 5 key takeaways from Davos 2023”.
[6] Vincent Diringer, 2022, “Circular Economy, Opportunities for Innovation and Collaboration”, LEAD-WiSE.
[7] Henadi al-Saleh, 2023, “Why big business must support SMEs to achieve economic growth and get to net zero”, World Economic Forum.
[8] Laura Chung and Abby Seaman, 2023, “How small businesses are overcoming the challenge of going green”, the Sydney Morning Herald.
[9] Racquel Moses, 2022, “Building climate resilience through private finance”, the Jamaica Gleaner.
[10] Vincent Diringer, 2022, “Gen Z Challenge Status Quo”, LEAD-WiSE.
[11] Vincent Diringer, 2022, “Greenwashing within the Global Business Context”, LEAD-WiSE.
Mere weeks after the United Nations climate conference (COP27) ended in Egypt, diplomats assembled in Montreal for another UN conference, this one focused on biodiversity (CBD COP15). Following the mixed results at COP27, the sustainability sector set its eyes on the discussions to be held in Canada, where an ambitious target to protect the world’s natural areas and promote green growth was to be tabled [1]. Over a hundred countries pledged their support for the goal which aimed to protect 30% of land and oceans by 2030. Steeped in science, protecting the world’s biodiversity would ensure that important natural systems could be maintained, helping mitigate climate change and building sustainable economies in developing nations [1, 2].
As Grenadian diplomat and UN Climate Change Executive Secretary Simon Stiell explains alongside Jamaican Minister Matthew Samuda, protecting local biodiversity could have a massive impact on global goals: “With our nations committing to both land and sea protection we will contribute to the following global benefits:
While the benefits are clear, heading into CBD COP15 roughly 17% of land and 8% of oceans were protected, further highlighting how ambitious such a target would be [3].
Despite some drama during the negotiations process that put in doubt the viability of the target, a consensus was reached and the 30×30 target was agreed upon, and parties will now work on an implementation process [4]. While this landmark deal is drawing scepticism as to its feasibility, it has undeniably highlighted the demand for nature-based solutions and investments into sustainable economic structures [5-7]. For businesses, this signals a change in momentum favouring purpose-led businesses, as Carolina Klint explains, “Organizations should focus their resilience efforts on expediting green energy, climate and nature investments [as well as] improving employee health and well-being. [7]”
But what does this all mean realistically?
The 30×30 will have a more pronounced effect in developing nations and countries with large biodiversity hotspots, where blue/green economic growth that focuses on protection can be effectively developed. However, this also provides opportunities for companies and institutions to explore new ways of integrating nature, biodiversity, and sustainability into their business model [5-7]. This can be through partnerships with like-minded entities, creating local programs, or actively working with suppliers and customers to build sustainable supply chains – have you thought about how your business can contribute to global goals?
[1] High Ambition Coalition for Nature and People, 2022, “Why 30×30?”.
[2] Simon Stiell & Matthew Samuda, 2022, “Caribbean 30×30 target: Protecting nature to protect future”, Jamaica Gleaner.
[3] John Cannon, 2021, “Protected areas now cover nearly 17% of Earth’s surface: U.N. report”, Mongabay.
[4] Patrick Greenfield & Phoebe Weston, 2022, “Cop15: historic deal struck to halt biodiversity loss by 2030”, The Guardian.
[5] Vincent Diringer, 2022, “The Importance of Sustainable Business Models”, LEAD-WiSE.
[6] Vincent Diringer, 2022, “Net-Zero: The Future of Sustainable Businesses”, LEAD-WiSE.
[7] Carolina Klint, 2023, “Global Risks Report 2023: How organizations should respond”, World Economic Forum.
Human beings start learning with their first breath. Education is essential to acquire knowledge, the skills to survive, to develop one’s full potential and integrate successfully into today’s society.
Today 25% of the European Union’s population is in the 0-24 age bracket [1]. Educational institutions are meant to inspire this age group throughout their childhood, teenage years and into early adulthood.
The concept of sustainability has evolved over the years – today, environmental and social aspects have become increasingly important, exemplified best by growing movements calling for better diversity and inclusion and work-life balance as well as movements such as me-too, BlackLivesMatter or Fridays for future. Many of these activities have been led by a young diverse generation through weekly demonstrations, heated debates and strikes. As a result, our society increasingly demands that companies and governments take responsibility in these areas [2].
Academia is fundamental to bridge the socio-economic divide of environmental and social sustainability competencies [2]. Childcare centres, schools and universities must continuously train their educators and staff with essential new skills, encourage to undertake research, and apply their content to their own internal sustainability practices to lead by example. As a knowledge broker responsible for a well-functioning and healthy society, it is necessary for educational institutions to adhere to, convey and execute an aligned mission, adjust curricula, adapt learning methods and change organisational behaviour towards sustainability. Academia must respond to these emerging, global trends with efficient resource management, new education models, training programs and behaviour to develop integrated, responsible and future world citizens [3].
Education is the most powerful weapon which you can use to change the world. – Nelson Mandela
Align your Vision & Mission
Any business or organisation must develop a strategy aligned with its purpose, vision and mission. Whether it is an early childcare centre or a highly ranked university, it all starts with a strategy allowing for a healthy organisational culture including social justice, democracy and sustainability embedded in the approach. Old frameworks included only the financial aspect of growth. The new leadership requires also considering the well-being and diversity of its people including educators, administrators, building managers, students, and community members as well as the physical environment embracing internal and external sustainable practices contemplating the impact on the planet as well as the classic. All three factors, social, environmental and financial, maintain a healthy balance of sustainable progress. A sustainably aligned and managed educational institution can improve its trust, reputation and progress financially better over the years [4].
Almost 80% of young people report being aware of climate change and global warming.
Young people need to develop scientific skills, digital skills, financial literacy and sustainability competences to be ready for the green transition .
OECD, How can education systems advance the green transition? [4]
The European Union’s ambitious 2030 Agenda for Sustainable Development aims to support the green transition of corporate organisations, enable constant scientific research, create new academic programmes, methodologies and curricula allowing to understand, engage and apply the new skills and learnings. This agenda treats social and environmental sustainability as a core value and pushes educational institutions to enhance their curricula and empowers students to become changemakers. Educators and researchers attracted by your school’s purpose and vision will integrate their sustainability research findings in their teaching, delivering the content with passion.
Academia offering new skills through its programs will remain at the forefront of megatrends. Innovative programs and curricula will attract attention and lead to more admissions and prospects.[5]
Walk the talk – your internal sustainability practices
Sustainability requires a systems-based approach promoting collaboration across disciplines and departments, roles, and schools, to generate positive impact.
To apply what you teach, internal processes should align with your sustainability. Including members of faculty, educators, building maintenance, students and suppliers in this process, it will allow to overcome challenges more easily and transparently while not making it a sole leadership team’s responsibility.
Processes could include revising the following procedures [6]:
Sustainably managed institutions lead to innovative approaches allowing to save costs such as supplies, maintenance fees, energy as well as develop new business models. Lastly and more importantly, sustainable practices are life-sustaining and create value for all stakeholders in the community, not just the organisation itself.
Communication is the primary tool for inspiring change, sharing the vision, prompting new behaviours, and recognizing accomplishments.
For your stakeholders to understand the institution’s strategy behind all the activities around sustainability, transparent, consistent and concise communications through a variety of channels with a clear, authentic and consistent message. By including all stakeholders in your efforts, you encourage open conversations and highlight the benefit of your school’s actions. [7]
As a result, your organisation reinforces its trust by translating its values into credibility.
Conclusion
Academia plays a vital role in the change of behaviour of our society. Childcare centres, schools, universities and business schools maintain constant contact with society. By nature, educational institutions are influenced by social and environmental issues and put their knowledge into practice to achieve sustainability of human systems.
Key Takeaways
[1] OECD Stat – Historical Population 2021
[2] The role of universities’ sustainability, teachers’ well-being, and attitudes toward e-learning during COVID-19, Melinda Timea Fülöp, Teodora Odett Breaz, Xiaofei He, Constantin Aurelian Ionescu, George Silviu Cordoş, Sorina Geanina Stanescu, July 2022
[3] LEAD-WISE – Sustainable change through education, Vincent Diringer, September 2022
[4] OECD, How can education systems advance the green transition?; Francesca Borgonovi, Ottavia Brussino, Helke Seitz and Sarah Wildi, September 2022
[5] The Centre for Green Schools, The whole school sustainability framework 2014 (PDF), Stephanie K. Barr, Jennifer E. Cross, & Brian H. Dunbar
[6] National Governance Association, Environmental sustainability. A whole school approach (PDF), June 2022
[7] Center for green schools
[8] Forbes, A brave new marker: Rising to the challenge of sustainability communications, Jessie Parker, 2021
Written by Vincent Diringer, Content Editor, Sustainability
As part of the global political response to climate change, the United Nations Framework Convention on Climate Change (UNFCCC) holds a yearly Conference of the Parties (COP) in one of its signatory nations. This has happened every year since 1994, except for 2020, when the global COVID-19 pandemic delayed the summit by a year. The yearly COPs serve as an opportunity for negotiators to debate the next set of climate goals, and for decision-makers to take stock of the progress they’ve achieved so far [1, 2]. Following two weeks of negotiations on key topics, the summit concludes with an agreement on climate action like the Paris Agreement (COP21), or simply with a statement outlining the developments from the COP, like this year’s Sharm El-Sheikh Implementation Plan.
Outside of the negotiations taking place at the summit, pavilions within the COP campus accommodate delegations from global governments, civil society, and special interest groups. This setting provides opportunities for networking and knowledge-sharing between a wide range of stakeholders, and can be the precursor for the development of private and public sector partnerships towards sustainability, economic development, and climate action. COP remains a relatively closed event, with accreditation for the summit limited and reserved for diplomats and UNFCCC-recognized organizations [2].
The UNFCCC COP dictates the speed and scope of global climate action. Therefore, this yearly summit has the ability to set new frameworks, goals, and developments capable of affecting governments, companies, and individuals. For example, the Paris Agreement has served as the key reference for climate action since its creation in 2015, and has gone on to influence the transition to net zero. Other mechanisms can be developed that can impact individuals at a policy level, such as climate finance for Loss & Damage (L&D) which provides technical and economic support to climate-vulnerable countries affected by climate change impacts.
While policy negotiations and civil society meetings are the main activities at COP, global politics and corporate agendas influence the outcome to the point that the summit has been called ineffective and a vector for greenwashing. Combined with slow action on climate and limited advocacy for evidence-based solutions established on scientific research, COPs are increasingly seen as having a limited effect on climate due to the toothless nature of international politics [3-5].
As outlined by University College of London Professor Bobby Bannerjee [4], “After 27 years of negotiations, conflicts and breakdowns, the world’s nations have basically agreed: (1) climate change is a serious problem; (2) something must be done to fix it; (3) rich nations should do more; and (4) based on the Paris agreement of 2015, every country should set their own emissions goals and do their best to meet them. The UN claims that the Paris agreement is “legally binding”, but there are no enforcement mechanisms or penalties for countries in breach. Even current pledges will not be enough to meet the target to restrict global warming to the 1.5℃ target agreed in Paris.”
Outcomes of COP27 in Sharm El-Sheikh
Professor Bannerjee’s comments are an accurate summary of the outcomes of COP27 in Sharm El-Sheikh [3-5]. As a delegate attached to the Climate Youth Negotiators Programme (CYNP) and youth advocacy non-for-profit ClimaTalk, I was in Egypt shining a light on young people and their roles in policy-making. While this COP was the first to have youth, indigenous people, and climate justice pavilions – all of which were amongst the most popular ones over the course of the two weeks – there was a permeating feeling that these must progress from tokenistic participation to actual impact within negotiations. Over the course of my time there I heard multiple observers and negotiators highlight how despite an increased amount of youth being represented at the summit, there continued to be pushback against including young people in decision and policy-making.
While there may have been blockages at the negotiating table, young people were amply represented amid civil society and government delegations. Several young entrepreneurs expressed that they saw COP as a way of building bridges with like-minded individuals and changing the world via their projects, rather than via slow diplomatic processes that are easily hampered. Actions speak louder than words was the adage that seeped through conversations, and young people were clearly ready to take things in hand.
Although diplomats were able to find an agreement on L&D (Loss and Damage) after several decades of negotiations, the final text was seen as a step back in terms of actions especially considering the advice provided by the Intergovernmental Panel on Climate Change (IPCC) and growing support to condemn and drastically reduce the usage of fossil fuels. COP27 hosted one of the largest contingents of fossil fuel delegations the summit has seen, and featured a pavilion from the Organization of the Petroleum Exporting Countries (OPEC), this in tandem with Coca Cola announcement as a sponsor has added fuel to the debate of large-scale greenwashing and climate inaction at major international events [6-8].
One thing has been made clear: businesses and individuals have an opportunity to stir change from the bottom-up. Capable of making their own decisions and working collaboratively with other like-minded organizations and persons willing to make a difference, companies have an opportunity to be the leaders in climate action – have you considered how you could enact change in your community?
[1] UNFCCC, 2022, “Conference of the Parties (COP)”, United Nations.
[2] Malek Romdhane & Vincent Diringer, 2021, “What is COP?”, ClimaTalk.
[3] Gloria Dickie and Simon Jessop, 2022, “COP27 – Corporate climate pledges rife with greenwashing – U.N. expert group”, Reuters.
[4] Bob Bannerjee, 2022, “Why COP27 should be the last of these pointless corporate love-ins”, The Conversation.
[5] Aruna Chandrasekhar, Daisy Dunne, Josh Gabbatiss, Joe Goodman, Simon Evans and Zizhu Zhang, 2022, “COP27: Key outcomes agreed at the UN climate talks in Sharm El-Sheikh”, Carbon Brief
[6] Ruth Michaelson, 2022, “‘Explosion’ in number of fossil fuel lobbyists at Cop27 climate summit”, The Guardian.
[7] Esme Stallard, 2022, “COP27: Activists ‘baffled’ that Coca-Cola will be sponsor”, BBC.
[8] OPEC Fund, 2022 “COP27 Overview” OPEC.
Following a 2022 summer season that saw widespread drought, heatwaves, wildfires and water scarcity across the world, French president Emmanuel Macron declared the “end of abundance” as it pertained to consumption [1]. With resources becoming limited and supply chains disrupted, industries are beginning to investigate alternative solutions to solve challenges. In the case of energy production, renewable energy is growing in popularity, for transport, electric vehicles and micro-mobility are being valued more – but what are the opportunities for traditional businesses?
Sustainable business models abound [2]. There is no shortage of sustainable alternatives that can make business operations low-carbon and have a measurable impact on global sustainability goals. However, within an economic hub there exists opportunities to reduce overall emissions, while addressing dwindling resource abundance [3].
“Looking at today’s consumption levels, sustaining our current growth trajectory would require the ecological resources of 2.3 planets by 2050. This number is significantly higher for mature markets. The US, for example, would need five planets to sustain present-day consumption levels; Germany would need three,” points out Holcim CEO Jan Jenisch [4], “The good news is that a solution is within our reach. We can decouple our world’s growth from the consumption of the Earth’s resources by shifting from a linear “take, make, waste” economy to a circular “reduce, reuse, recycle” one.”
A circular economy uses efficient recycling of waste to fill gaps in supply chains. Recycling at an elevated level would reduce dependence and need for new raw materials, instead finding opportunities for these materials to be found within waste [5]. This process would happen continuously, as in a loop – or circular – economic model. The production and extraction of new raw materials is one of the largest vectors for carbon emissions – being able to replace these processes by recuperating materials from discarded waste drastically reduces carbon emissions and creates a more resilient economy [6].
Herein lies the paradigm shift that will ensure that a business can reduce its environmental impact as efficiently as possible, while solidifying new supply chains within the economy – or as Jenisch puts it [4], “The business opportunity of our time.”
At first glance, circularity may seem more of a theory than active business practice, but certain industries have been operating within this model for a while. Aluminium recycling is one of the most successful case studies, as CircularLab Co-Founder Gina Lee explains [7]: “75 percent of all aluminium produced is still in circulation. [Current cans] contain an average of 73 percent recycled content, which means, there is a lot of can-to-can recycling taking place. Making a can from old cans uses 90 percent less energy and generates 90 percent less emissions compared to producing that same can from virgin material.”
Other examples of circular models include Holcim’s recycling of construction waste to create roofing and cement or the government of São Paulo’s initiative to encourage regenerative agriculture benefiting farmers and vulnerable communities [4, 8]. Smaller innovative businesses highlight how companies can be born from circularity: a fashion brand using dairy farm waste [9], construction cement made with recycled plastic [10], breaking down old wind turbine blades into industrial products [11], and using insects to break down biological waste and turning them into sustainable cattle feed [12] – solutions truly are everywhere.
The circular economy is more than a catchphrase. As global economies shift to a sustainable model, this will affect business big and small across industries, sectors, and countries – and encourage innovation and collaboration [3-5]. Have you ever considered how you might be able to participate in a circular economic model?
[1] Kim Willsher, 2022, “Macron warns of ‘end of abundance’ as France faces difficult winter”, The Guardian.
[2] Vincent Diringer, 2022, “The Importance of Sustainable Business Models”, LEAD-WiSE.
[3] Vincent Diringer, 2022, “Collaboration Towards the Goals: Working Together for Sustainability”, LEAD-WiSE.
[4] Jan Jenisch, 2022, “Why the circular economy is the business opportunity of our time”, World Economic Forum.
[5] Government of the Netherlands, 2022, “From a linear to a circular economy”.
[6] Dirk Nelen and Ioannis Bakas, 2021, “Improving the climate impact of raw material sourcing”, European Environment Agency.
[7] Gina Lee, 2019, “The aluminium can: America’s most successful recycling story that you’ve never heard”, Green Biz.
[8] Ellen MacArthur Foundation, 2022, “Regenerative agriculture around São Paulo: Connect the Dots”.
[9] Maeve Campbell, 2020, “The company making t-shirts from gone off milk”, Euronews Green.
[10] Centre for Regenerative Design & Collaboration, 2022, “Introducing Resin8™”.
[11] Mitch Jacoby, 2022, “How can companies recycle wind turbine blades?”, Chemical & Engineering News.
[12] Nambu Group, 2021, “Our Vision & Story”.
The scale of the climate crisis can seem overwhelming at times, especially for small businesses or organizations seeking to operate in a sustainable way. Lost within the mass of information available to us and the fastest ways for global governments to shift towards a net-zero approach, are the solutions available for the entities that are key to the economic transition [1]. Believe it or not, sustainability is relatively easy to attain, and one thing entrepreneurs tend to forget is that it is not an all-or-nothing approach – small steps towards achieving larger goals often have a larger impact [2, 3]! Below you will find a range of steps any business can take to reduce their environmental impact.
The two major drivers of any business are the customers and the workforce, as such, their input is critical to developing positive company policy and understanding what steps can be taken. Likewise, organizations have a responsibility to educate stakeholders and consumers alike, creating educational campaigns and programmes tailored for each can go a long way in improving local communities’ understanding of climate issues [3-5].
From reducing electricity consumption, using recycled materials, generating less waste or finding ways to reduce staff travel, there are a wide range of small steps a business can take to reduce its environmental impact [6]. Other steps include installing LED lighting, improving recycling, replacing single-use items with reusable options, and swapping to renewable energy sources [7].
Larger expenses such as installing smart-meters that monitor power consumption, business-based heating and renewable energy production, and effective insulation have limited many businesses’ ability to transition. However, most local governments have subsidies and schemes aimed at supporting sustainable business operations [7]. Opportunities abound for entities seeking to make small changes and scale up their efforts, and high up-front costs are worthwhile investments [8].
An often overlooked part of business operations is supply chains, which for certain entities represent a much higher footprint than the business itself [9]. To this end, liaising with suppliers to discuss the best pathway for sustainable operations will be the best option. For businesses with integrated supply chains, a shift to electric vehicles, reducing packaging, and a combination of the above steps will yield strong results.
Sometimes the best way to set and reach sustainability goals is to bring in outside help specialized in making businesses more environmentally friendly. Armed with experience, expertise in their subject matter, relevant collaborators and partners, sustainable agencies can be key in unlocking a business’ potential. Have you ever wondered about the sustainable opportunities hiding in plain sight?
[1] Vincent Diringer, 2022, “Net-Zero: The Future of Sustainable Businesses”, LEAD-WiSE.
[2] Vincent Diringer, 2022, “Changing The Status Quo”, LEAD-WiSE.
[3] Wayne Elsey, 2022, “Small Steps For Big Impact: Getting Your Team Involved In Sustainability”, Forbes.
[4] Vincent Diringer, 2022, “Sustainable Change Through Education”, LEAD-WiSE.
[5] Vincent Diringer, 2022, “Dialogue Between Activists and Businesses – Key to Creating a Sustainable World”, LEAD-WiSE.
[6] NSW Department of Planning, Industry and Environment, 2022, “What can I do to make my small business more sustainable?”, New South Wales Government.
[7] Netherlands Enterprise Agency RVO, 2022, “How to make your business operations sustainable”, Government of the Netherlands.
[8] Paul Polman and Andrew Winston, 2022, “Yes, Investing in ESG Pays Off”, Harvard Business Review.
[9] Eloise Barry, 2021, “As More Companies Make Net-Zero Pledges, Some Aren’t as Good as They Sound”, Time Magazine.
The Sustainable Development Goals (SDGs) which set out the targets to improve socio-economic wellbeing across global communities by 2030 have received a lot of attention as stakeholders from across various sectors seek to create a better world. There are seventeen goals the United Nations have outlined, including Gender Equality (SDG 5), Affordable Clean Energy (SDG 7), and Climate Action (SDG 13) [1]. Meeting some of these targets can be easier to do for some businesses than others, but one particular goal often gets overlooked when it comes to business operations: Collaboration Towards the Goals (SDG 17). Collaboration, however, provides a swathe of opportunities for businesses to improve their sustainability, and maximize their impact [2].
“Delivering on climate change commitments is going to depend on industries and the Government working closely together,” explains Alison Kay, Ernst & Young Managing Partner for Client Service UK&I [3], “Businesses need a framework that supports investment and governments need entrepreneurs who can turn ambition into action. Bringing businesses together and sharing their findings with the Government, we hope to make that action better targeted and ultimately more successful.” This means that businesses working together on a range of sustainability projects can lead to breakthroughs at a national or international level in terms of technology, policy, and best practice [2].
The impact of sustainability through collaboration can be exemplified by several projects, for example:
Businesses working within the same sector and location should work together to find opportunities to reduce their environmental impact across their shared supply chains. Obviously, this requires a high amount of trust between entrepreneurs, but the benefits of working together and pooling resources open opportunities to create a circular system that can provide a blueprint for companies in different industries [2, 3, 6, 7]. Have you considered where you could further reduce your carbon impact and promote sustainability through business collaborations?
[1] United Nations, 2022, “Do you know all 17 SDGs?” United Nations.
[2] Joana Kleine Jäger, 2020, “Will you be my partner? Collaborations in the circular economy”, Circle Economy.
[3] Alison Kay, 2021, “Why collaboration is key to tackling climate change”, Ernst & Young.
[4] Shel Evergreen, 2022, “Lithium costs a lot of money—so why aren’t we recycling lithium batteries?”, Ars Technica.
[5] Md Tasbirul Islam and Usha Iyer-Raniga, 2022, “Lithium-Ion Battery Recycling in the Circular Economy: A Review.” Recycling, 7, 33.
[6] Ram Nidumolu, Jib Ellison, John Whalen, and Erin Billman, 2014, “The Collaboration Imperative”, Harvard Business Review.
[7] Jacqueline Poh, 2022, “3 ways we can collaborate better for a stronger circular economy”, World Economic Forum.
[8] Vincent Diringer, 2022, “Dialogue Between Activists and Businesses – Key to Creating a Sustainable World”, LEAD-WiSE.
The scale of the climate crisis can seem overwhelming at times, especially for small businesses or organizations seeking to operate in a sustainable way. Lost within the mass of information available to us and the fastest ways for global governments to shift towards a net-zero approach, are the solutions available for the entities that are key to the economic transition [1]. Believe it or not, sustainability is relatively easy to attain, and one thing entrepreneurs tend to forget is that it is not an all-or-nothing approach – small steps towards achieving larger goals often have a larger impact [2, 3]! Below you will find a range of steps any business can take to reduce their environmental impact.
The two major drivers of any business are the customers and the workforce, as such, their input is critical to developing positive company policy and understanding what steps can be taken. Likewise, organizations have a responsibility to educate stakeholders and consumers alike, creating educational campaigns and programmes tailored for each can go a long way in improving local communities’ understanding of climate issues [3-5].
From reducing electricity consumption, using recycled materials, generating less waste or finding ways to reduce staff travel, there are a wide range of small steps a business can take to reduce its environmental impact [6]. Other steps include installing LED lighting, improving recycling, replacing single-use items with reusable options, and swapping to renewable energy sources [7].
Larger expenses such as installing smart-meters that monitor power consumption, business-based heating and renewable energy production, and effective insulation have limited many businesses’ ability to transition. However, most local governments have subsidies and schemes aimed at supporting sustainable business operations [7]. Opportunities abound for entities seeking to make small changes and scale up their efforts, and high up-front costs are worthwhile investments [8].
An often overlooked part of business operations is supply chains, which for certain entities represent a much higher footprint than the business itself [9]. To this end, liaising with suppliers to discuss the best pathway for sustainable operations will be the best option. For businesses with integrated supply chains, a shift to electric vehicles, reducing packaging, and a combination of the above steps will yield strong results.
Sometimes the best way to set and reach sustainability goals is to bring in outside help specialized in making businesses more environmentally friendly. Armed with experience, expertise in their subject matter, relevant collaborators and partners, sustainable agencies can be key in unlocking a business’ potential. Have you ever wondered about the sustainable opportunities hiding in plain sight?
[1] Vincent Diringer, 2022, “Net-Zero: The Future of Sustainable Businesses”, LEAD-WiSE.
[2] Vincent Diringer, 2022, “Changing The Status Quo”, LEAD-WiSE.
[3] Wayne Elsey, 2022, “Small Steps For Big Impact: Getting Your Team Involved In Sustainability”, Forbes.
[4] Vincent Diringer, 2022, “Sustainable Change Through Education”, LEAD-WiSE.
[5] Vincent Diringer, 2022, “Dialogue Between Activists and Businesses – Key to Creating a Sustainable World”, LEAD-WiSE.
[6] NSW Department of Planning, Industry and Environment, 2022, “What can I do to make my small business more sustainable?”, New South Wales Government.
[7] Netherlands Enterprise Agency RVO, 2022, “How to make your business operations sustainable”, Government of the Netherlands.
[8] Paul Polman and Andrew Winston, 2022, “Yes, Investing in ESG Pays Off”, Harvard Business Review.
[9] Eloise Barry, 2021, “As More Companies Make Net-Zero Pledges, Some Aren’t as Good as They Sound”, Time Magazine.
The term ‘Greenwashing’ has found itself nestled within everyday conversations when it comes to businesses and climate action – but what is it exactly? Greenwashing is a portmanteau of whitewashing, the act of deliberately ignoring or glossing over an issue, and green action, or projects aimed at reducing environmental damage. As such, greenwashing refers to the glossing over issues of environmentally unfriendly business actions by dissimulating them or misleading the public [1-3]. The term has become commonplace in the past decade as businesses seek to attract consumers who are increasingly becoming more interested in sustainable goods and services.
To do so, businesses highlight how environmentally-friendly their product is, how the processing or sourcing of materials is in line with fair trade and sustainability, and sometimes even just suggesting they are green using language and color schemes (above). However, companies engaging in greenwashing are never truly taking action to make their businesses green, but are misleading consumers in order to profit [1-4].
Greenwashing is relatively commonplace. Major companies and small businesses have been identified as greenwashers – a label that is hard to shed and affects their reputation [1, 4, 5].
One example is the car manufacturer Volkswagen. The company was caught faking their emissions reports on several lines of their diesel vehicles in 2015. Branded as the most environmentally-friendly diesel vehicles on the market, Volkswagen capitalized on consumer demand for affordable low-emission transport [5]. However, the US Environmental Protection Agency (EPA) realized that the German manufacturer had rigged the testing, and the cars actually produced up to 40 times more emissions than actually advertised. Volkswagen denied directly misleading the public, saying they misunderstood the testing requirements, but the damage was done. Labeled a greenwasher, the company’s stock plunged as it was faced by class action lawsuits from around the world and several billions in fines [5].
While Volkswagen was caught in the act falsifying data and misrepresenting its product, there are several other types of greenwashing. Fossil fuel companies are known to participate in greenwashing involving misdirection by presenting themselves as key businesses in the renewable energy field. They highlight their investments in emerging technologies and carbon-reduction measures – yet they continue to prospect for new fossil fuel extraction sites and do not roll back on current production [6]. Likewise, specific fossil fuel lobbies have attempted to greenwash their energy sources. Coal has tried to rebrand itself as “clean coal” without explaining what made it ‘clean’, while natural gas companies have presented themselves as a low-emission fossil fuel that has even been branded ‘green’ by major economies, this despite natural gas still producing far more emissions than renewables.
Branding, marketing and advertising are actively used to create the illusion of science-based, sustainable climate action [1-3]. Retail giant Walmart recently announced plans to shift to a low-carbon operating model, following a similar move by other major companies. Yet Walmart’s framework does not include Scope 3 emissions which includes its high-polluting supply chains, while other businesses have taken theirs into consideration [3]. The aviation sector has actively come under fire for similar reasons, offering passengers to add a carbon offset donation that supposedly would counter the emissions of their flight – something a recent investigation by The Guardian disputes [7].
The examples above are just some of the types of greenwashing that can be encountered on a daily basis. While it may seem as though it is more pervasive than first thought, there has been a movement to counteract greenwashing which involves taking actual action to reduce emissions and embrace a sustainable business model [8]. Consumers are demanding more sustainable products, but they are also becoming more adept at recognizing greenwashing. As such, the best way to appeal to them and provide sustainable goods or services is by doing just that and shifting your operations to become more environmentally-friendly. It can’t be greenwashing if you are actually taking concerted actions to reduce your emissions and supporting sustainability. Have you thought about whether or not you may be greenwashing, and have you thought about the opportunities you may have to make your business sustainable?
[1] Bruce Watson, 2016, “The troubling evolution of corporate greenwashing” The Guardian
[2] Knut Haanaes, Frédéric Dalsace & James Henderson, 2021, “How to identify greenwashing”, Institute for Management Development
[3] De Freitas Netto, S. V., Sobral, M. F. F., Ribeiro, A. R. B., & Soares, G. R. da L. (2020). Concepts and forms of greenwashing: a systematic review. Environmental Sciences Europe, 32(1).
[4] Eloise Barry, 2021, “As More Companies Make Net-Zero Pledges, Some Aren’t as Good as They Sound”, Time Magazine.
[5] Geoffrey Smith & Roger Parloff, 2016, “Hoaxwagen: How the massive diesel fraud incinerated VW’s reputation—and will hobble the company for years.” Fortune
[6] Li M, Trencher G, Asuka J (2022) The clean energy claims of BP, Chevron, ExxonMobil and Shell: A mismatch between discourse, actions and investments. PLoS ONE 17(2)
[7] Patrick Greenfield, 2021, “Carbon offsets used by major airlines based on flawed system, warn experts”, The Guardian
[8] Vincent Diringer, 2022, “The Importance of Sustainable Business Models”, LEAD-WiSE.
In leadup to the 2021 United Nations climate change conference, COP26, countries announced their plans to decarbonize their economies in order to help mitigate the impacts of climate change – net-zero. These net-zero goals involve reaching a balance where the greenhouse gasses produced by an action are cancelled out by the amount of gasses it removes from the atmosphere. These pledges involve large investments into infrastructure and a general shift in economic priorities for many governments, but several major companies have also pledged to decarbonize their operations. Some, like PwC, have set ambitious targets that would see them reach the mark by the end of this decade [1, 2]. Scepticism from the public is rife however, as consumers are wary of greenwashing claims and inaction from both governments and companies – but net zero is the future of sustainable businesses, and opportunities exist for them to thrive using such a business model.
In an analysis of Fortune 500 companies with net-zero plans, the World Wildlife Foundation (WWF) found that only 20% had science-based plans. “A lot of businesses and investors are setting these kinds of targets, and they’re doing it, arguably, for PR reasons,” explains Oxford University professor Thomas Hale [3]. Companies like Walmart highlight the issues of greenwashing. Walmart, who have pledged to reach net-zero operations, do so without incorporating the emissions produced by their supply chains – which are the largest source of emissions for the company [3, 4].
PwC on the other hand has committed to the United Nations’ science-based targets for companies, joining other financial companies like AIA in transitioning their operations, investment portfolios, and that of their partners to align with net-zero goals. But what does this look like [5]? For PwC it means reducing their amount of corporate flights, transitioning their fleet of work vehicles to electric models, refitting their buildings to become more energy efficient, reducing waste and investment into emerging technologies [1]. Investing giant AIA went a step further and divested from coal and indicated that it would not carry out new investments related to fossil fuel, choosing to finance renewable power and sustainable development projects, and ensuring that its partners did the same [2].
Net-zero and sustainable business models are not just good for the planet, but they are also a financial opportunity [6, 7]. Several CDP reports highlight that the cost of not adapting to climate change-driven market demands will lead to trillions in stranded assets, and while implementing a sustainable business model may not be cheap, the long-term benefits far outweigh short-term, non-sustainable approaches [5, 7]. Consumers want their products and services to be sustainable, they are ready to spend more for them – and they are becoming more adept at identifying greenwashing. Have you thought about implementing a net-zero or sustainable business model?
[1] PriceWaterhouseCooper, 2022, “Towards net zero”, PriceWaterhouseCooper.
[2] Yvonne Lau, 2021, “7 years ahead of schedule, AIA becomes the first major Asian insurer to end coal exposure”, Fortune.
[3] Eloise Barry, 2021, “As More Companies Make Net-Zero Pledges, Some Aren’t as Good as They Sound”, Time Magazine.
[4] Net Zero Tracker, 2022, “Companies”, Net Zero Tracker.
[5] CDP, 2022, “Data”, CDP.
[6] Vincent Diringer, 2022, “The Importance of Sustainable Business Models”, LEAD-WiSE.
[7] Zameer, H., Wang, Y., & Saeed, M. R. (2021). Net‐zero emission targets and the role of managerial environmental awareness, customer pressure, and regulatory control toward environmental performance. Business Strategy and the Environment.