Beyond pledges: a wiser path to business and sustainability

Sustainability has evolved from a niche concern to a defining mandate for organizations globally. Nowadays, almost every major business has committed to at least one sustainability target. This is excellent news. However, while pledges have multiplied, progress is still frustratingly slow. For instance, over 4,000 companies have committed to reducing their emissions (SBTi), yet recent assessments reveal that only a fraction are meeting these goals at the required pace. 

This progress gap reveals a fundamental truth: achieving true sustainability requires more than ambitious promises, it requires effective action. And, given the results, the action we have been taking so far, may not have been that effective. As Albert Einstein wisely observed: “We can’t solve the same problems by using the same kind of thinking we used when we created them”. 

We need a better approach to business and sustainability - one that moves us away from fragmented, under-resourced, box-ticking sustainability efforts and brings us closer to achieving the meaningful outcomes we need, at the pace required.

But how do we get there?

I believe the answer is strategic integration. We need to shift away from the outdated notion that doing good and doing well can be separate pursuits and start to recognize and treat sustainability as it truly is: an essential driver for creating, delivering, and capturing value in the 21st century.

This is a big but possible and desirable shift. A few forward-thinking and courageous organizations are already showing the way. A brilliant example is IKEA. This familiar Swedish furniture brand has embedded sustainability deeply into every layer of its business; making it an integral part of its strategy, operations, and marketing activities. Let’s take a closer look:

• Strategy: IKEA’s purpose, "to create a better everyday life for the many people," has recently evolved into a powerful, unique, and sustainability-centered value proposition: "healthy, sustainable, affordable living for everyone" which accounts for its strengths and today’s new context. This, combined with ambitious and relevant environmental and social targets and a well-defined governance system, sets a solid basis for turning sustainability into a fundamental driver of decision-making across the company’s global franchise system.

• Operations: this unique promise organically trickles down into the products and services offered and the company’s operations and procurement practices. The focus on products that promote resource efficiency and sustainable lifestyles (eg. water saving shower tabs, and plant-based meals), the launch of circular services (eg. circular market, and IKEA preowned), and the integration of guidelines such as the Democratic Design principles and their IWAY supplier code of conduct are a few examples of how IKEA is embedding sustainability across all its business activities.

• Marketing: finally, a company’s communication should reflect what the business stands for and the value and impact it aims to create. Here, IKEA is undoubtedly doing a good job too. We just need to walk through the aisles of their stores or watch IKEA’s famous “The Wonderful Everyday” campaign to quickly get their value proposition. High-quality, affordable products and services that enable everyone to live an authentic, joyful, and sustainable life at home.

What’s beautiful is that this approach is proving successful. Not only is IKEA making steady progress toward its ESG targets, but its revenues and income are also growing (FY2023) - demonstrating that strategic integration may, indeed, be the right approach to achieve the meaningful outcomes we need at the pace required; all while fostering long-term business resilience and success.

The promising fact is that IKEA is not alone. Companies like Patagonia and Fairphone are taking similar steps. Yet, there’s a massive opportunity for more to follow.

We need a movement. We need more companies with ambitious targets to embrace this approach to business and sustainability. We need a critical mass to reach a tipping point for positive change. One that exponentially accelerates the transformation needed to jointly meet our social, environmental, and economic ambitions.

Only then can we confidently say we’re on the right path to actual progress. Honestly, this is not about purpose or playing the 'good guy'; it’s about integrating sustainability as a vital element for any business to succeed in the 21st century. So, why not rise to the challenge? Why not aim to get it right? Why not be the first generation to achieve sustainability?