e are experiencing great political uncertainty with the resurgence of populist movements that endanger the democratic gains of the late 20th century. In this, we observe a strange passivity and in some cases denial with regard to man's impact on the environment by a growing number of political players. Take, for example, the decision in the USA to resume electricity production from coal, the permits for shale gas extraction or the inability to establish incentives for responsible consumption. Perhaps even more strange is that today it is companies that are taking the lead in the sustainability process, as opposed to governments (at least in part of the western world).
The same companies that not so long ago were accused of the worst practices in encouraging irresponsible consumption, uncontrolled pollution, disrespect for human rights and widespread waste are today largely setting the sustainability agenda. Surely there is much room for improvement (take the recent example of Volkswagen's CO2 emissions scandal), but it seems that our hope is more dependent on the will of our business managers than on political will, apparently powerless to develop effective social and environmental policies.
The embrace of the concept of shared value advanced by Michael Porter (i.e. the simultaneous creation of social and financial value by companies through the market) by large multinationals such as Unilever, Philips or Nestlé seems authentic and, although still limited, could make a difference in achieving the sustainable development goals (SDGs). Indeed, these companies explicitly include several SDGs in their strategic objectives.
At the same time, the emergence of a whole new sector of the impact economy is also a sign of our times, with a new generation of social entrepreneurs in the most varied forms, trying to solve the most diverse social and environmental problems through market logics. The division between the social and business sectors is thus becoming increasingly blurred, even forcing us to rethink the concept of capitalism in some of its fundamental principles.
In this context, there is enormous room (and need) for innovation both in the development of new products and services and in production and management processes. It is also fundamental to think of new business models that capture and monetise the value generated in a complex web of stakeholders. For example, in a circular economy, large-scale recycling and reuse of materials and components will probably only be possible if companies move from a traditional sales business model topay-per-use models in which ownership remains with the producer and is not passed on to the consumer (encouraging the reinsertion of products and materials in the value chain).
The opportunities for innovation in this new reality are immense, but they require an integrated and strategic management of sustainability. Those who do not do so will certainly be left behind. I therefore invite entrepreneurs to reflect on the role they have assumed in this reinvention of the market.
Is sustainability already mainstream in your company?
