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Environmental Heroes and Villains – What Separates Truly Sustainable Organisations from those that Play Around the Edges?

December 22, 2024

By Giovani Palafox-Alcantar

COP29 underscored the gap between climate commitments and tangible actions, reflecting both progress and significant challenges. What is the critical role of business in bridging this gap and why are some companies leading in this area, and why are some stuck on the sustainability journey?

The Stakes Post-COP29

A pivotal agreement was reached on the new collective quantified goal (NCQG) for climate finance, targeting $300 billion annually from developed countries by 2035 and an aspirational $1.3 trillion in total annual financing¹. The sum falls far short of what is needed, sparking walkouts and criticism from developing nations and climate advocates.

Technical rules for international carbon markets were negotiated, a decade-long milestone that can facilitate cost-effective decarbonisation. Yet, calls to strengthen ambitions on fossil fuel transitions and national emissions targets remain unmet, leaving many stakeholders dissatisfied².

These outcomes reinforce the critical role of businesses in bridging this gap. Business possesses unique capacities to lead on sustainability or exacerbate global challenges. Financial institutions are increasingly aligning portfolios with net-zero goals, but systemic action is needed to unlock private capital, enhance adaptation finance, and mobilise meaningful resources for vulnerable regions. As the spotlight shifts to COP30 in Brazil, business must seize this moment to drive the ambition and action needed for a just, sustainable transition.

Heroes vs Villains

In the fight for a sustainable future, businesses are cast as either heroes or villains. The heroes are bold and innovative, driving measurable change. They lead with ambition, making science-based commitments and embedding sustainability into every aspect of their operations. They champion transparency, adopt circular business models, and embrace renewable energy, cutting emissions and waste with measurable impact. Heroes are not just adapting – they are setting the pace for others to follow.

Villains, conversely cling to outdated, unsustainable practices. They greenwash their efforts, using clever marketing to mask minimal or non-existent progress. They resist change, lobby against climate regulations, and prioritise short-term profits over long-term survival. These companies contribute disproportionately to environmental degradation while undermining the credibility of genuine efforts.

The line between the two lies in authenticity and action. Are you driving innovation or delaying progress? In an era when stakeholders demand accountability, only heroes will thrive.

The Business Imperative for Sustainability

Sustainability is not just the right thing to do – it’s the smart thing. Investors are funnelling trillions into green assets, with ESG investments projected to exceed $40 trillion by 2030³,⁴. Consumers are demanding accountability, with two thirds willing to pay more for sustainable products in the four major European economies⁵. Regulatory pressures are tightening, pushing businesses to act or face penalties.

Companies that embrace sustainability future proof their businesses by reducing risks, unlocking innovation, and attracting loyalty from stakeholders. Sustainability is not optional – it’s a non-negotiable strategy for long-term success.

Showcasing the Heroes

In the race for sustainability, some companies are setting the gold standard:

Patagonia: A trailblazer in circular economy practices, has repaired over 130,000 garments through its Worn Wear programme⁶, reducing waste and encouraging a culture of reuse. Beyond products, the company donates 1% of sales to environmental causes and has transferred ownership to a trust dedicated to fighting climate change⁷.
Ørsted: Once one of Europe’s largest coal users, Ørsted transformed into a global leader in renewable energy, cutting carbon emissions by 87% since 2006⁸. Now, 90% of its energy output comes from wind and solar, demonstrating how legacy industries can pivot to a sustainable future⁹.
Unilever: With its ambitious Sustainable Living Plan, Unilever reduced CO₂ emissions from energy by 77% since 2008¹⁰, while innovating products like plant-based foods under its Hellmann’s and Magnum brands¹¹ to tackle climate and health challenges¹², and reducing food waste¹³.

These heroes prove that bold action and measurable outcomes are possible – and profitable. They inspire businesses worldwide to rethink what leadership looks like in a sustainable era.

Exposing the Villains

Some are falling conspicuously behind in being more sustainable Take greenwashing – a practice where organisations exaggerate or falsify environmental claims. A sunscreen brand has been criticised for misleadingly advertising its products as “reef-safe”¹⁴ despite containing harmful chemicals that damage coral reefs ¹⁵. Buzzwords like “eco-friendly” are often used without substantiated evidence, misleading environmentally conscious consumers.

A beverage giant has faced scrutiny for its role in plastic pollution. Despite announcing ambitious sustainability goals, including a pledge to collect and recycle one bottle or can for each sold by 2030 (now accused of silently quitting it¹⁶), critics argue that the company continues to generate excessive plastic waste, maintaining its position as one of the world’s largest polluters¹⁷. In addition, the company has faced criticism for its water practices, such as water inefficient overuse¹⁸ and exerting control over vital aquifers in certain regions, sparking allegations of depriving local communities of essential water resources¹⁹.Not to mention other controversies around public health^20,21. Despite efforts to address these issues through sustainability initiatives, past reputational damage erodes trust in the company’s future commitments.

These examples illustrate common issues such as lack of transparency, unfulfilled promises, and reliance on unsustainable materials. Both cases provide an opportunity to encourage practices like greater accountability and prioritisation of verifiable, sustainable alternatives.

The solution? Genuine accountability: aligning targets with measurable outcomes, prioritising sustainable materials, and embracing circular economy principles. Companies must shift from quick fixes to systemic change, transforming their operations to leave a lighter footprint. When done right, the rewards are clear – enhanced reputation, resilience, and long-term profitability.

Key Factors for Success

Sustainability champions share key traits. Leadership commitment sets the tone, with CEOs and boards prioritising environmental goals. These organisations embed sustainability into core business strategies, ensuring it drives innovation and value creation. Transparent reporting builds trust, demonstrating measurable progress and accountability. Collaboration is critical – working with supply chains, communities, and NGOs amplifies impact.

Business leaders can emulate these practices by setting ambitious, measurable goals and aligning them with their mission. Regularly report on progress to build credibility and engage stakeholders. Foster a culture of innovation and partnership to tackle complex challenges. Finally, to lead by example, making sustainability a visible, non-negotiable priority.

A Call to Action

The time for hesitation is over. Businesses hold the power to rewrite the sustainability story – not as villains but as heroes. By embracing innovation, transparency, and collaboration, organisations can lead the charge towards a thriving, resilient planet.

The tools and strategies exist – what is needed now is courage and commitment. Do you want to be a hero or villain?

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