SBC’s Head of ESG Jay Crangle recently visited London where she connected with a range of sustainability focused global organisations, including a stop off at the office of SBC’s global network organisation the World Business Council for Sustainable Development (WBCSD). She shares 10 takeaways from her discussions.
1. This is the transition in action
Energy and economic power are redistributing. Some countries are aligning to win, while others (especially in the West) risk falling behind. As one WBCSD colleague said, ‘the West hasn’t woken up to the post-West world.’
2. The rebel alliance
We’re living through seismic changes. These shifts are opening up multilateral opportunities for collaboration – especially among aligned countries and sectors, such as the International Solar Alliance.
3. ROI not ESG
Using language that addresses things like rising insurance costs, or energy security as a profit opportunity is what’s getting cut through in businesses, not the moral imperative. WBCSD has also been highlighting how sustainable companies outperform in mergers and acquisitions – not just in ESG scores.
4. Capitalism is all we’ve got
That’s according to the WBCSD Corporate Performance and Accountability team. In their words we need to, ‘twist the current financial system to achieve stewardship’ by proving the ROI sustainability offers.
5. Inequality as a trojan horse
Businesses fear reputational damage from worsening inequality. As The Taskforce on Inequality and Social-related Financial Disclosures (TISFD) reflected, this concern can be leveraged to bring sustainability into boardroom conversations.
6. The future of reporting is digital
It’s also becoming more low-cost, interoperable, and more efficient courtesy of the developments powered by AI.
7. The IKEA effect
Some businesses I met with are seeing global shifts as threats rather than opportunities. This reactive stance leaves them vulnerable to customer expectations (including IKEA’s enquiries about how sustainable their forestry is!). Flipping the script allows businesses to unlock/tap into the value add that comes as a result of proactive sustainability and climate credentials.
8. Putting people at the heart of it
Several colleagues remarked on the need for the global embodiment a new type of leader – one that is inclusive and courageous – and how approaches like the Inner Development Goals can help with this.
9. The unintended consequences of Ozempic
One business I met with remarked that the rise in GLP1 inhibitors is fueling more protein diversification amongst consumers as Ozempic users look to ensure they get their requisite amount of protein each day!
10. Are we just rearranging deck chairs on the Titanic?
I asked most people I met this question, and opinions varied. Some said yes – at least the deck will look pretty. Others believe we’re turning a massive ship, slowly but surely. All aboard!
Thank you to Beca and WEAll Aotearoa for helping fund Jay’s trip
