Planet and People

What's the root of the problem that Companies are failing to meet their sustainability targets❓❓❓ Is it because they were lacking money to invest in green transitions❓ You can decide for yourself whether or not you think we are doing what we can. "01 Unilever to scale back environmental and social pledges Net Profit 2023: $7.1B "Unilever, one of the largest users of plastic packaging in the world, had previously promised to halve its use of virgin plastics by 2025. Instead, it will now aim for a reduction of a third by 2026, Bloomberg reported. The less ambitious target equates to about 100,000 tonnes more fresh plastic every year. The company is also abandoning a pledge to pay direct suppliers a living wage by 2030, instead proposing fair pay for suppliers accounting for half its annual spend on goods and services by 2026. It is also dropping a promise to spend €2bn (£1.7bn) a year with diverse businesses by 2025 and a commitment that 5% of its workforce will be made up of people with disabilities by the same year." - The Guardian, April 2024 02 Crocs pushes back net zero target 10 years Net Profit 2023: $792M "Footwear brand Crocs Inc has pushed back its net-zero target to 2040 after recording a 45.5% increase in absolute emissions year-on-year. Crocs estimated its value chain emissions in 2021 at 538,037 tonnes of CO2e. The estimate for 2022 is 45.5% higher at 782,774 tonnes of CO2e. At least 193,000 tonnes of these 2022 emissions are attributable to the HEYDUDE acquisition." Edie, May 2023 03 US Banks abandon "bare minimum" environmental standards project Citi: Net Profit 2023: $9.2B Bank of America: Net Profit 2023: $26.5B JPMorgan Chase: Net Profit 2023: $49.5B Wells Fargo: Net Profit 2023: $19.1B "Four of the world’s biggest banks have left the Equator Principles, a set of minimum industry standards and safeguards for financial institutions to address environmental and social risks in countries where they finance fossil fuel and mining projects." - The Guardian, March 2024 04 Colgate says it might miss 2025 packaging recyclability target Net Profit 2023: $3.3B "Colgate-Palmolive is acknowledging that it may not meet a key packaging circularity target by 2025. The sticking point is in flexible bags and pouches, the CPG said in its 2023 sustainability and social impact report shared this week." - Packagingdive, May 2024 (and remember this only about recyclability, a very small piece in the sustainability puzzle) 05 The Joker: Microsoft pledged to be carbon negative in 2030, has seen 30% increase in GHG emissions since 2020. Net Profit: $72.3B Microsoft has not officially abandoned or pushed any deadlines, but it does seem like it's making it difficult for itself. A case to follow. "Microsoft’s total carbon emissions have risen nearly 30% since 2020 primarily due to the construction of data centers, the company said in its annual sustainability report Wednesday [ May 15 2024]" - CNBC news"" Credit Post Growth Guide

Why Choosing Sustainability Career Is Like Nothing Else! I believe those who have never worked for a purpose driven company in general, or a sustainability software company in particular don’t understand the all encompassing energy emanating from the fusion of purpose and work. Yesterday, I spent several hours in the Stockholm offices of Position Green, an ESG solutions company and I could almost see the pride and passion of those working as if it were a halo of light hanging around all those I came across. Those who only work to make money can’t go the distance of those who work to make a difference. As Nietzsche said, “He who has a why to live for can bear almost any how.” When your professional endeavors are in harmony with your personal beliefs, the work you do transcends mere tasks and becomes a source of deep personal satisfaction. This intrinsic motivation fuels a resilient dedication, enabling you to overcome obstacles with a strong sense of resolve. Discussions around sustainability careers quickly transition to a focus on technical skills, training, education, and such. These are key enablers, but the force behind a career rooted in sustainability is the fact that your professional success add a measure of betterment to the world. Your daily efforts contribute to a larger mission, whether it’s combating climate change, promoting social equity, or advancing sustainable technologies. The impact of your work extends beyond the confines of your office or company, reaching into communities and ecosystems. This broader impact creates a virtuous cycle where your success not only advances your career but also contributes to a more sustainable and equitable world. This is not to say that working in purposeful companies doesn’t have its challenges, you may still end up with a crappy boss, with difficult clients, or struggle to achieve a work-life balance. The only difference is that these challenges will be cushioned by a knowledge that your patience, efforts, and perseverance are in the service of something bigger than yourself. It is important to note that a purposeful career doesn’t equate to a charitable career. You don’t have to give up your quest for personal financial security and independence by choosing a sustainability career. On the contrary, a successful sustainability career can you offer you financial wealth, but most importantly, it will offer you a profound sense of fulfillment and alignment with your values. #esg #purpose #sustainability #career #job

#Materiality dynamics – How ESG issues become financially material over time Whether you like it or not, most companies only care about #ESG issues that are financially material. But whether an ESG issue is financially material, or not, is a complex, multifaceted question. Under which future scenarios will an ESG issue financially materialize? For which sectors and companies? Which PR scandal or other catalyst would it need? What laws and regulations could follow? etc. Understanding the associated pathways and dynamics is increasingly important for #ESGmanagement, investment decisions, and regulatory effectiveness. The transition from a non-financially material to a financially material ESG issue usually occurs like this:  – There is a misalignment between corporate and societal interests. First, it is tolerated f.e. due to a lack of awareness.  – Then, a „catalyst“ disturbs this equilibrium, e.g. a company oversteps the mark of what is considered socially acceptable or a PR scandal occurs.  – The ESG topic moves up on stakeholders’ agendas, public opinion changes and companies and politics must react. (Companies with firm-specific or industry self-regulation, politics with laws and regulations.) – As a result of the reactions, whole sectors must follow suit. Deviations are perceived as financial risks and therefore sanctioned by markets and investors. – The issue became financially material. In short, this is a theory of change for how ESG-related market failures are corrected. It is beautifully visualized by the figure below. (Source: HBS paper: How ESG Issues Become Financially Material to Corporations and Their Investors. By David Freiberg, Jean Rogers, and George Serafeim.)

Should boards set up a separate sustainability committee? - As research for my new book 'Sustainability in the Boardroom' continues, I realise that many boards prefer a 'full integration' approach (i.e. all directors discuss sustainability during regular board meetings). In theory, such an approach is great as it does not isolate sustainability. In practice, however, it can be difficult for boards to truly integrate sustainability discussions, especially if the board has not yet developed broad enough sustainability expertise. There is a risk that a full integration approach makes sustainability too implicit so that discussions do not connect well to strategic decisions. Forming a sustainability committee (or extending an existing committee) are viable alternatives, especially for boards that are still building up capacity and that are in the process of finding their way on sustainability. Committees also have downsides, but they allow for more granular discussions of how material ESG topics and corporate value drivers interact. #sustainability, #esg

BREAKING: THE NATURE RESTORATION LAW HAS BEEN PASSED! 🎉 - EU countries must restore at least 30% of habitats in poor condition by 2030, 60% by 2040, and 90% by 2050 - Provisions for agricultural ecosystems can be temporarily suspended under exceptional circumstances - Over 80% of European habitats are in poor shape One of the most important and impactful pieces of legislation of our era. It focuses on healing: 🌳 forests, grasslands and steppes 🏞️ wetlands, rivers and seas 🦬populations of wildlife The public support for Nature Restoration Law has been huge. More than 1,400 companies with revenues of more than US$ 7 trillion having rallied for immediate action, recognising that the signing of this law will contribute to a nature positive future: Spread the word and please share 🌍🤝

The Big -Trap. "A need to forgo short-term shareholder returns, in order to create more stakeholder value." This is where we get stuck. From the outside: Big bold promises. Ambitious targets. The wheels are in motion and progress gets made. The returns from initial efforts start to diminish fast. From the inside: Leadership said yes to sustainability in a big way. The big promises and targets were spread far and wide. Then it the talk moves to money. The investment needed doesn't get allocated. Then the budget shrinks. The sustainability team realise they can't make an impact with the funds they have. How and why do companies fall into the Big-Trap? They embark on their sustainability journey without all the tools they need. They don't have the team or everything mapped out yet. Resources and energy are economised. Waste is reduced. Less harmful offering(s) can now be sold at a premium. Then comes the need for more investment. This is where companies fall into the Big-Trap. Now share holder money must be spent. Often companies aren't willing to do this. Why? Well because growth is what drives their bonuses and rewards. If this gets sacrificed then it could put companies chiefs jobs in jeopardy. This short term sacrifice is for everyone's long term gain. Organisations just need to change their lens and look at this from a long term perspective. Investing in sustainability will create long term stakeholder value. If you're looking for a team to help you achieve Sustainability-as-the-World-Needs drop me a DM.