As we aim for a greener new year, this is what leading companies should look for

2021 was the year of sustainability. As many, including my colleagues at Forbes, accurately predicted a year ago, we have seen an unprecedented shift towards sustainable business practices in 2021, these changes have come in several important transformative ways. The Covid-19 pandemic, despite the many socio-economic obstacles it has caused, has further accelerated this trend. More than 70% of the companies interviewed for a research project commissioned by the Carbon Trust stated that environmental management and sustainability priorities will be more important to them as a result of Covid-19. As we enter the new year, the only certainty is that ecological thinking is here to stay. As more and more companies align their business strategies with the United Nations Sustainable Development Goals by increasing the dissemination of the environmental and climate impact of their companies, it is important to consider the key principles they should meet in order to achieve tangible and concrete green results in the following years come.

A new report from the Institute for Leadership in Sustainability at Cambridge University brings together the ideas of leading companies that highlight the practices needed to integrate a sustainable purpose into organizations and describes ten basic principles. Capturing the learnings of leaders of four large multinational companies (DSM, Ingka Group (IKEA), Interface and Unilever), the principles focus less on the why and what of the debate on the purpose of sustainability and more on how to incorporate it into the whole business. The report suggests that a company is unlikely to use all practices, but will be able to select, combine, and tailor a selection that best fits the size, culture, and context of the organization. Of the key principles outlined in the report, three stand out:

Integrate purpose into strategies

This principle brings to life the purpose of sustainability by linking it to the delivery of business solutions that benefit other stakeholders, such as customers and investors.

For example, Sustainability Innovation is at the heart of the Ingka Group’s sustainability department (IKEA) and has the task of exploring the prospect of a “better home life”, also the slogan of IKEA. Innovation projects have a long-term perspective and allow them to jump into key areas of IKEA’s sustainability strategy. “Innovation in sustainability has a long-term perspective in the Ingka group, focusing on new businesses and new approaches that generate a big impact,” says Pia Heidenmark Cook, sustainability director of the Ingka group. As a result, the company has generated numerous game-changing ideas that have revolutionized the furniture retail industry.

One of the latest ideas from the team being tested is the transformation of IKEA stores into circular hubs, Cook says the goal is to “involve customers and local communities in circularity by hosting workshops and the increase in the second-hand market for IKEA products ”.

Build the capacity and capacity of employees

This principle focuses on establishing a new purpose and a sustainability strategy that will create the need for new capabilities within the organization and that can be used to decentralize decision making, allowing for a more agile culture. As such, it is likely to require a new, more comprehensive mindset of both leaders and employees. “For us at DSM, the purpose is not‘ one more program ’: it is integrated into everything we do and is supported by a number of specific commitments, actions and goals across all functions and companies,” says Jeff Turner, Vice President of DSM Sustainability. “It is based on our long-established values ​​and has been fully accepted by our employees,” he adds. DSM’s purpose is now at the heart of its recent culture program, “it will help us deliver the future we aim for by strengthening the link between purpose and our daily activities,” Turner explains.

Select and create external associations

The third key principle is outward, it focuses on sharing a clear purpose and ambition externally and attracting potential partners who can work together to solve shared challenges. This intention, of working and shaping the landscape and the wider value chain, is often new to conventional firms and requires new skills, such as understanding the influence of the firm across the value chain and how to identify partners. . “To carry out our Climate Take Back mission, we had to deepen our knowledge of climate and technology, so we identified organizations with this experience and shared values ​​and established partnerships with them,” explains Erin Meezan , vice president of interface and general director of sustainability. As a result, the company launched the world’s first carbon-negative carpet tile. Strategic partnerships are also key to Unilever helping to drive catalytic transformation. “Working with UNICEF, the Global Vaccine Alliance and Save the Children, Unilever’s Lifebuoy brand has helped more than a billion people in more than 30 countries improve their hygiene habits by washing their hands with soap, according to Rebecca Marmot, Director of Sustainability at Unilever.

As we enter a new year, we hope that the painful lessons of 2021 will drive the corporate world to fight for more sustainable practices with climate and the environment at the top of its agenda.