Shared Forward #4 – Sustainability: cosmetic versus fundamental changes

I want to devote this blog of my Shared Forward initiative to something that has been with us for years now - the climate change debate. But it has not always been met with a sense of urgency – we see working groups, policies, initiatives and, yes – a completely new generation growing up with a different mindset, that takes climate seriously. And yet the change has been slow.

When we see news of flash floods and devastated cities, we pay attention and ask if this is what awaits us in the near future with increasing frequency? Last week I came across the news on BBC, which read that the UK is already undergoing disruptive climate change with increased rainfall, sunshine and temperatures. As a scientist put in the news report – climate change is not in the future, it is here and now. I guess that registers urgency.

It is not all bad – we see real ESG (environmental, social and governance) investing ecosystem growing and it is here to stay. We have the EU initiatives and regulations on sustainable reporting and the EU Taxonomy, which is bound to have real results in a foreseeable future. And, of course, countless other government drives for the cause.

But I also ask myself what can we do and what can I as an individual and a CEO do in this fight for the today and future of Earth – and yes, it sounds dramatic and yet so real.

To me, the key question comes down to cosmetic versus fundamental change. We do see organizations just slightly adjusting some processes to label them “green” or sustainable, but is a real change being made? In a sense even this is good because it elevates the climate issue on the agenda and many businesses do indeed have plenty of legacy investment, that just cannot be changed overnight.

But going forward the question that I will put is that of mere adjustment vs design - new and sustainable. That is, we need to design business and its processes from the ESG perspective first. We need to embed the ESG philosophy in how things are done, not do the things as usual and dress them in something greenish. This is the reason why we are looking deeper into our own sustainability goals at our production facilities in Latvia, Latvijas balzams, in Mexico – Fabrica de Tequilas Finos and elsewhere. We will be thrilled to announce some great news in the upcoming months.

As always, please share your insight on best case studies and knowledge, that show how new business processes are designed and the old ones re-designed with sustainability as a priority. Anything on water, logistics, transportation, emissions and of course – people and human behavior – is of priority in my line of business, but other ideas will also be appreciated.

Thank you.   

Katrīna,