Is sustainability undergoing a pandemic pause?
If you were to believe the mainstream business media, there would be no question whatsoever that the twin crises of a pandemic and a recession have pretty much put the kibosh on sustainable business activity. I mean, why, amid all this human and economic carnage, should companies be focused on anything besides keeping their doors open?
Last month, for example, the Wall Street Journal published a piece ("Sustainability Was Corporate America’s Buzzword. This Crisis Changes That") proclaiming that when it comes to corporate commitments and programs, "executives have called a timeout." It said in part:
"Today, every occupant of every C-suite is trying to figure out what they’re willing to throw overboard as the economic storm spawned by the pandemic is swamping their ships. Businesses that were planning to help save the world are now simply saving themselves."
Among the Journal’s proof points: General Motors put the brakes on a car-sharing program, Starbucks washed its hands of filling reusable coffee mugs and "companies have delayed sustainability reports."
Yes, we get it: No one wants to share a vehicle with strangers or refill an unwashed coffee mug during a pandemic. No question those programs should be "thrown overboard," at least temporarily.
If you were to believe the mainstream business media, there would be no question whatsoever that the twin crises of a pandemic and a recession have pretty much put the kibosh on sustainable business activity. I mean, why, amid all this human and economic carnage, should companies be focused on anything besides keeping their doors open?
Last month, for example, the Wall Street Journal published a piece ("Sustainability Was Corporate America’s Buzzword. This Crisis Changes That") proclaiming that when it comes to corporate commitments and programs, "executives have called a timeout." It said in part:
Today, every occupant of every C-suite is trying to figure out what they’re willing to throw overboard as the economic storm spawned by the pandemic is swamping their ships. Businesses that were planning to help save the world are now simply saving themselves.
Among the Journal’s proof points: General Motors put the brakes on a car-sharing program, Starbucks washed its hands of filling reusable coffee mugs and "companies have delayed sustainability reports."
Yes, we get it: No one wants to share a vehicle with strangers or refill an unwashed coffee mug during a pandemic. No question those programs should be "thrown overboard," at least temporarily.
"For the first time, corporate sustainability professionals are on the bus instead of being thrown under it."
All of which, my friends, is the editorial equivalent of fingernails on a chalkboard: something so dissonant with reality that it makes my head hurt. The reality is that corporate sustainability is alive and well. Unlike previous economic downturns, sustainability isn’t being jettisoned in the spirit of corporate cost-savings. It’s being kept alive as part of a pathway back to profitability.
For the first time, corporate sustainability professionals are on the bus instead of being thrown under it.
Need proof that reports of the death of sustainability are premature? Let’s begin with a few headlines:
Southern Company commits to net-zero emissions by 2050
Microsoft committed to protect more land than it operates on globally by 2025
Citigroup to halt all financing for thermal coal mining by 2030
Shell plans to achieve net-zero emissions across its product manufacturing operations
Mattel launches latest sugarcane-based products
Volvo and Daimler launch €1.2 billion fuel cell truck joint venture
General Mills commits to 100% renewable electricity by 2030
All of those happened in April.
April! The Lost Month. When jobs and economic activity essentially went poof. When more than 190,000 humans died of COVID-19 globally, nearly five times the number one month earlier, and more than 20 million Americans lost their jobs. When the U.S. services sector posted its biggest contraction in more than a decade and the price of oil turned negative for the first time in history. When the global economy essentially sank like a stone as people world over sheltered in place.
April!
Okay, you say, April coincides with Earth Day, when companies traditionally strut their sustainability stuff. Thus, it’s not a good indicator.
Fair enough. In that case, here are some headlines from May:
Total pledges to deliver net-zero operations by mid-century
Campbell Soup to transition to 100% recyclable or compostable packaging by 2030
Dunkin' switches to plastic-free cups and plans to double number of green restaurants
French corporates call for "green and inclusive recovery"
BNP Paribas accelerates "complete coal exit" plan
Intel’s 2030 commitments include "shared" climate and social goals
More than 300 companies push U.S. Congress to promote climate action
Pernod Ricard moves up ban on single-use plastics to 2021
ADM to pioneer biofuels, more carbon capture projects
Over 150 global corporations urge world leaders for net-zero recovery from COVID-19
Siemens Gamesa unveils plans for "world's largest wind turbine"
Google to stop making AI tools for oil and gas extraction
Half of Cargill’s sustainable cocoa now traceable from farm to factory
I could go on; there’s more where these came from. Still, this baker’s dozen of storylines provides a peek into what happened in the 31 days just ended, well before most cities and states have started to reopen.
Another data point, albeit anecdotal: The 90 or so members of our GreenBiz Executive Network — sustainability leaders at large companies — remain firmly in their jobs. Sure, there's been some churn — both comings and goings — but that's normal. There seem to be precious few layoffs among these professionals. That could change if the downturn drags on, but so far, so good.
Five easy pieces
So, why is sustainability still going strong within the private sector amid this terrifying time? Five reasons:
1. Corporate sustainability is a long-term evolution. As several of the above headlines suggest, companies are making commitments into 2025, 2030 and beyond. That means they have set the wheels in motion for long-term structural change. These changes generally don’t come and go based on quarterly cycles.
2. Companies understand that sustainability engenders resilience by making supply chains more transparent, operations more efficient and, increasingly, improving the ability of operations to withstand or recover from calamities of all types.
3. Investors see sustainability as material. Largely because of No. 2 above, institutional shareholders see sustainability performance as a proxy for a well-managed company that is taking a risked-based approach to strategy and investing. And they’re not shy about letting companies know this.
4. There’s a growing call for a business-led "green recovery" to revive economies around the world and help them prepare for the next likely pandemic: climate change. While the Green New Deal isn’t yet getting traction in Washington, D.C., some of its components already are being tucked into the recovery legislation. And in Europe, "green recovery" is already a mainstream meme.
5. Companies understand that the world is watching. They want to be able to attract and retain customers and talent — to be seen as part of the solution or at least not part of the problem. True, we’ve been hearing this for years, and there is strong evidence that shoppers and job seekers have been seeking out "good" companies. But the times have ratcheted up those concerns. In a world where talent, both young and experienced, are drawn to employers that are helping address the world’s problems, who will want to work for your company?
Of course, it’s not all a rosy scenario. Clean energy jobs have been decimated. Hiring is on hold for many open corporate sustainability positions. More than a few sustainable business professionals are devoting their time these days to the pandemic, to ensure the well-being of employees, suppliers, customers and others, and that facilities will be healthy places to work once the recovery kicks in. Some are itching to get back to their "day job."
But let’s stop and briefly celebrate the moment: Corporate sustainability continues, largely unhindered, during some of the worst moments in modern human history. Its value and importance are being seen as central to addressing the economic, environmental and social problems we face, and to increasing societal resilience to the next wave of shocks, in whatever form they take. And, little by little, companies are stepping up to meet the challenges and seize the opportunities.
Okay, enough celebrating. It's time to get back to the hard work still to be done.
