Disruption creates opportunities for sustainability leaders to stand out from the crowd

By Kathy Kyle Bonomini, Co-Founder, Amplia Group

The Economist’s The World in 2020 arrived yesterday through my letterbox.

In the haze of my family’s new normal — much like others’ across the UK, and indeed the rest of the world — where we are managing  homeschooling, taking multiple video conference calls, responding to clients via Slack, email, WhatsApp — and one desperate dash for exercise today - I found myself pausing to read an article left open on my kitchen table.

The headline read like a cautionary tale. It caught my eye and I had to stop and read it:

Bosses will pay a price for mixing politics and corporate values. 

My first reaction was: not if they are an authentic CEO. Or a brand whose audience, business model, audience, and corporate values aligns to their particular stance. For those CEOs who use political posturing - especially when it comes to sustainability - as a gimmick, then sure, it is an issue. But for those leaders who are walking the walk, well - that’s what leaders do. They live their brand.

The article mainly focuses on ‘CEO activists’ who have fallen into a trap of virtuous branding or who have been driven by ‘woke’ employees or who have been drawn into any particular stance on ‘inequality, culture wars and climate’ without really thinking it through. The article goes on to argue that chief execs should stay out of politics and that prudent businesses should let the government set the rules and companies should simply maximise value within those rules.

This is how I envision those CEOs, ‘maximising value’:

KC Green

As Eric Artz, President and CEO of REI has stated about climate change:

“I believe we do not have the luxury of calling climate change a political issue. This is a human issue. And we must act now.”

I am reminded of leaders I have worked with for the past 20 years across multiple industries, sectors, and continents, who view leadership not as a position but as the actions that they take every day. They take care of their people. They live their brand. They are passionate about the services and solutions they provide, and about their clients’ and customers’ success.

In my mind, there is a difference between a being an executive, or ‘business folk’ — as the article suggests — and a chief executive who is a leader. 

A leader acts in the best interests of their organisation and of the people they serve. Those whose actions align with their values and with the values of their stakeholders will have a lot to consider, but with the right strategy and plan in place, they can navigate that ‘burning room’ they might find themselves in — whether it’s a global pandemic, digital transformation, accusations of hypocrisy, or a mutiny of those very people they are trying to serve. The Economist article cites the example of Mary Barra of General Motors, who in September 2019 faced a strike by 46,000 workers. They claimed unfair pay and threatened factory closures due to her efforts to shift GM to electric vehicles. Transformation takes vision, collaboration, creativity, and stamina even when ideological ground and the economy shifts right under a leader’s feet.

Disruption and transformation can be painful.

But obstacles can bring opportunities. Innovative leaders transform their companies and sometimes entire industries when they experience their toughest challenges. Take the US government recently rolling back fuel economy standards, one of the key efforts of the previous administration to combat climate change. What should car manufacturers do? Respond to their constituents? Which ones? Should they make cheaper, dirtier cars? How will this impact greenhouse gas emissions? How will this impact trade? How will this, in the long term, impact not only employees and customers, but public health?

The EU is going carbon neutral by 2050 and the UK has mandated that all new cars sold must be electric by 2035 (though the auto industry claims the country is unprepared for this). This is just one industry with a complex supply chain and web of partners and stakeholders. And public health implications.

Just hours after the administration unveiled the final rule on Tuesday, Mary Nichols, chairwoman of the California Air Resources Board, disclosed that Volvo was in talks with the state of California to reach a voluntary emissions agreement. Four other automakers — Ford, Honda, Volkswagen, and BMW — have already agreed a deal with California that is far more ambitious than the current administration’s. These companies are taking action on emissions. The government didn’t mandate their agreements. No one told them to do it. They are going beyond what is required of them. 

Ultimately brands and their leaders should be true to their (sustainability) roots. There is a market for their business both in the US and abroad in multiple sustainable sectors — in renewable energy, low carbon solutions, clean vehicles, digitalisation, manufacturing, food products, automated vehicles, or any product that in some way enhances humanity’s well being. I’ve got a list. It is long. There is a lot of opportunity. My colleague Tom sets it all out nicely in these blogs.

Take Action.

Right now our team in the UK, Brussels, Spain and the US is collaborating to identify those North American companies seeking to build their profile and brand awareness, build relationships with key stakeholders, create partnerships, and increase their market share in both the US and Europe.

We understand the steps Europe plans to undertake to achieve its goal to be climate-neutral by 2050 via the European Green Deal (EGD). It is my hope that we can begin to identify North American leaders and companies who are interested in building relationships across the policy, digital, and sustainability sector in the EU.

For more details about our perspective on the European Green Deal, check out Amplia Group’s four-part blog series on the EGD. Stay tuned for more on our perspective on how the EU Green Deal is integral to the Covid response in our continuing blog series.