Tag Archives: sustainability

Make the Planet and Your Bottom Line Smile

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Make the Planet and Your Bottom Line Smile

GUEST POST from Mike Shipulski

What if the most profitable thing you could do was work that reduced the rise in the earth’s temperature? What if it was most profitable to reduce CO2 emissions, improve water quality or generate renewable energy? Or what if it was most profitable to do work that indirectly made the planet smile?

What if while your competitors greenwashed their products and you radically reduced the environmental impacts of yours? And what if the market would pay more for your greener product? And what if your competitors saw this and disregarded the early warning signs of their demise? This is what I call a compete-with-no-one condition. This is where your competitors eat each other’s ankles in a race to the bottom while you raise prices and sell more on a different line of goodness – environmental goodness. This is where you compete against no one because you’re the only one with products that make the planet smile.

The problem with an environmentally-centric, compete-with-no-one approach is you have to put yourself out there and design and commercialize new products based on this “unproven” goodness. In a world of profits through cost, quality and speed, you’ve got to choose profits through reduced CO2, improved water quality and renewable energy. Why would anyone pay more for a more environmentally responsible product when its price is higher than the ones that work well and pollute just as much as they did last year?

When the Toyota Prius hybrid first arrived on the market, it cost more than traditional cars and its performance was nothing special. Yet it sold. Yes, it had radically improved fuel economy, but the fuel savings didn’t justify the higher price, yet it sold. Competitors advertised that the Prius hybrid didn’t make financial sense, yet it sold. With the Prius hybrid, Toyota took an environmentally-centric, compete-with-no-one approach. They made little on each vehicle or even lost money, but they did it anyway. They did the most important thing. They started.

The Toyota Prius hybrid wasn’t a logical purchase, it was an emotional one. People bought them to make a statement about themselves – I drive a funny-shaped car that gets great gas mileage, I’m environmentally responsible, and I want you to know that. And as other companies scoffed, Toyota created a new category and owned the whole thing.

And, slowly, as Toyota improved the technology and reduced their costs, the price of the Prius dropped and they sold more. And then all the other manufacturers jumped into the race and tried to catch up. And while everyone else cut their teeth on high volume manufacturing a hybrid vehicle, Toyota accelerated.

Below is a chart of hybrid electric vehicles (hev) sold in the US from 2000 to 2017. Each color represents a different model and the Toyota Prius hybrid is represented by the tall blue segment of each year’s stacked bar. In 2000, Toyota sold 5,562 Prius hybrids (60% of all hevs). In 2005, they sold 107,897 Prius hybrids, 17,989 Highlander hybrids and 20,674 Lexus hybrids for a total of 209,711 hybrids (69% of all hevs). In 2007, they sold 181,221 Prius and five other hybrid models for a total of 228,593 (65% of all hevs). In 2017, sold 15 hybrid models and the nearest competitor sold four models. The reduction from 2008 to 2011 is due to reduced gas prices. (Here’s a link to the chart.)

United States Hybrid Electric Vehicle Sales

The success of the Prius vehicle set off the battery wars which set the stage for the plug-in hybrids (larger batteries) and all-electric vehicles (still larger batteries). At the start, the Prius didn’t make sense in a race-to-the-bottom way, but it made sense to people that wanted to make the planet smile. It cost more, and it sold. And that was enough for Toyota to make profits with a more environmentally friendly product. No, Prius didn’t save the planet, but it showed companies that it’s possible to make profits while making the planet smile (a bit). And it made it safe for companies to pursue the next generation of environmentally-friendly vehicles.

The only way to guarantee you won’t make more profits with environmentally responsible products is to believe you won’t. And that may be okay unless one of your companies believes it is possible.

Here’s a thought experiment. Put yourself ten years into the future. There is more CO2 in the atmosphere, the earth is warmer, sea levels are higher, water is more polluted and renewable energy is far cheaper. Are your sales higher if your product creates more CO2, or less? Are your sales higher if your product heats the earth, or cools it? Are your sales higher if your product pollutes water, or makes it cleaner? Are your sales higher because you bet against renewable energy, or because you embraced it? Are your sales higher because you made the planet frown, or smile?

Now, with your new perspective, bring yourself back to the present and do what it takes to increase sales ten years from now. Your future self, your children, their children, and the planet will thank you.

Image credits: Google Gemini

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Sustainability Requires Doing Less Not More

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GUEST POST from Mike Shipulski

If you use fewer natural resources, your product costs less.

If you use recycled materials, your product costs less.

If you use less electricity, your product costs less.

If you use less water to make your product, your product costs less.

If you use less fuel to ship your product, your product costs less.

If you make your product lighter, your product costs less.

If you use less packaging, your product costs less.

If you don’t want to be environmentally responsible because you think it’s right, at least do it to be more profitable.

Image credit: Pexels

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Innovation or Not – Snacks Made from Watermelon Seeds

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Innovation or Not - Snacks Made from Watermelon Seeds

GUEST POST from Art Inteligencia

When we talk about sustainability and innovation, the food industry often comes up short—despite being a fertile ground for both creativity and ecological advancement. One emerging trend is the development of snacks made from watermelon seeds, a seemingly simple idea that could have far-reaching impacts on our food systems and environmental footprint. But is it truly innovative? Let’s explore this concept through the lens of three compelling case studies that revolve around sustainability and the potent use of waste products for creating value.

Case Study 1: Eco Snacks Co.

Eco Snacks Co., a startup based in California, has carved a niche in the sustainable snacks market by turning watermelon seeds—typically a waste product—into nutrient-dense snacks. They source these seeds from local farms that would otherwise discard them. The seeds are cleaned, roasted, and seasoned to create a range of flavors, from chili lime to smoky BBQ.

But it’s not just about offering a tasty, healthy snack. By transforming what was once considered waste into a valuable product, Eco Snacks Co. addresses two major sustainability concerns: food waste and resource efficiency. The company also implements eco-friendly packaging made from biodegradable materials, reinforcing their commitment to the environment.

Eco Snacks Co. has experienced significant growth, with their products now available in major supermarkets and health food stores. They have managed to not only capture a segment of the snack market but also educate consumers on the benefits of upcycling food waste.

Case Study 2: Seed-to-Snack Innovators

Seed-to-Snack Innovators, based in the heart of Texas, have taken a different approach to watermelon seed snacks. Their business model centers on a cooperative relationship with watermelon farmers, offering them a way to monetize the by-products of their harvests. In essence, this is a farm-to-snack initiative.

After collecting the seeds, the company employs a proprietary method to dehydrate and flavor them, creating a product that fits well within the growing demand for plant-based snacks. The use of these seeds not only reduces agricultural waste but also provides an additional revenue stream for farmers.

The innovation doesn’t stop there; Seed-to-Snack Innovators have partnered with local gardens and schools to promote sustainable farming and waste reduction practices. Their educational programs aim to create a new generation of eco-conscious consumers who understand the importance of reducing waste and supporting sustainable food systems.

Case Study 3: Simple Mills

Simple Mills, a leader in the clean-food movement, has integrated the concept of sustainability into their business model by focusing on real ingredients and minimal processing. While they are predominantly known for their almond flour-based products, Simple Mills has also explored the use of other seed types, including watermelon seeds, in their innovative snacks.

Their approach is multifaceted: they aim to improve ingredient sourcing by working directly with farmers to ensure that every part of the plant is utilized, thus reducing waste. By incorporating watermelon seeds into their product line, Simple Mills highlights the versatility and nutritious value of these often-overlooked seeds.

Simple Mills is also committed to transparent supply chains and sustainable packaging solutions. Their packaging features clear information about their sustainability practices and is designed to minimize environmental impact, using recyclable and compostable materials whenever possible.

The company has not only expanded their product range but has also established themselves as educators and advocates for sustainable eating practices. Through community programs and partnerships, Simple Mills promotes a holistic approach to food that emphasizes health, sustainability, and waste reduction.

Conclusion

Both Eco Snacks Co., Seed-to-Snack Innovators, and Simple Mills exemplify how seemingly small innovations can lead to significant sustainability benefits. By taking what is traditionally seen as waste and converting it into a valuable product, these companies are not just making great snacks; they are reshaping our understanding of resource efficiency and waste reduction.

Finally, while snacks made from watermelon seeds might seem like a simple idea on the surface, the underlying innovation lies in the holistic approach to sustainability. These companies prove that it’s possible to create delicious, nutritious products while also making a positive impact on the environment.

So, innovation or not? I say it’s a resounding yes. It’s a perfect example of how true innovation often lies in reimagining the everyday, turning challenges into opportunities, and always keeping sustainability front and center.

Image credit: Simple Mills

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LEGO Knows Why Companies Don’t Innovate

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LEGO Knows Why Companies Don't Innovate

GUEST POST from Robyn Bolton

“Lego’s Latest Effort to Avoid Oil-Based Plastic Hits Brick Wall” – WSJ

“Lego axes plans to make bricks from recycled bottles” – BBC

“Lego ditches oil-free brick in sustainability setback” – The Financial Times

Recently, LEGO found itself doing the Walk of Atonement (see video below) after announcing to The Financial Times that it was scrapping plans to make bricks from recycled bottles, and media outlets from The Wall Street Journal to Fast Company to WIRED were more than happy to play the Shame Nun.

And it wasn’t just media outlets ringing the Shame Bell:

  • “In the future, they should not make these kinds of announcements (prototype made from recyclable plastic) until they actually do it,” Judith Enck, President of Beyond Plastics
  • “They are not going to survive as an organization if they don’t find a solution,” Paolo Taticchi, corporate sustainability expert at University College London.
  • “Lego undoubtedly had good intentions, but if you’re going to to (sic) announce a major environmental initiative like this—one that affects the core of your company—good intentions aren’t enough. And in this instance, it can even undermine progress.” Jesus Diaz, creative director, screenwriter, and producer at The Magic Sauce, writing forFast Company

As a LEGO lover, I am not unbiased, but WOW, the amount of hypocritical, self-righteous judgment is astounding!  All these publications and pundits espouse the need for innovation, yet when a company falls even the tiniest bit short of aspirations, it’s just SHAME (clang) SHAME (clang) SHAME.

A LEGO Atlantis 8073 Manta Warrior (i.e., tiny) bit of context

In 1946, LEGO founder Ole Kirk Christiansen purchased Denmark’s first plastic injection molding machine.  Today, 95% of the company’s 4,400 different bricks are made using acrylonitrile butadiene styrene (ABS), a plastic that requires 4.4 pounds of oil to produce 2.2 pounds of brick.  Admittedly, it’s not a great ratio, and it gets worse.  The material isn’t biodegradable or easily recyclable, so when the 3% of bricks not handed down to the next generation end up in a landfill, they’ll break down into highly polluting microplastics.

With this context, it’s easy to understand why LEGO’s 2018 announcement that it will move to all non-plastic or recycled materials by 2030 and reduce its carbon emissions by 37% (from 2019’s 1.2 million tons) by 2032 was such big news.

Three years later, in 2021, LEGO announced that its prototype bricks made from polyethylene terephthalate (PET) bottles offered a promising alternative to its oil-based plastic bricks. 

But last Monday, after two years of testing, the company shared that what was promising as a prototype isn’t possible at scale because the process required to produce PET-based bricks actually increases carbon emissions.

SHAME!

A LEGO Art World Map (i.e. massive) amount of praise for LEGO

LEGO is doing everything that innovation theorists, consultants, and practitioners recommend:

  • Setting a clear vision and measurable goals so that people know what the priorities are (reduce carbon emissions), why they’re important (“playing our part in building a sustainable future and creating a better world for our children to inherit”), and the magnitude of change required
  • Defining what is on and off the table in terms of innovation, specifically that they are not willing to compromise the quality, durability, or “clutch power” of bricks to improve sustainability
  • Developing a portfolio of bets that includes new materials for products and packaging, new services to keep bricks out of landfills and in kids’ hands, new building and production processes, and active partnerships with suppliers to reduce their climate footprint
  • Prototyping and learning before committing to scale because what is possible at a prototype level is different than what’s possible at pilot, which is different from what’s possible at scale.
  • Focusing on the big picture and the long-term by not going for the near-term myopic win of declaring “we’re making bricks from more sustainable materials” and instead deciding “not to progress” with something that, when taken as a whole process, moves the company further away from its 2032 goal.

Just one minifig’s opinion

If we want companies to innovate (and we do), shaming them for falling short of perfection is the absolute wrong way to do it.

Is it disappointing that something that seemed promising didn’t work out?  Of course.  But it’s just one of many avenues and experiments being pursued.  This project ended, but the pursuit of the goal hasn’t.

Is 2 years a long time to figure out that you can’t scale a prototype and still meet your goals?  Maybe.  But, then again, it took P&G 10 years to figure out how to develop and scale a perforation that improved one-handed toilet paper tearing.

Should LEGO have kept all its efforts and success a secret until everything was perfect and ready to launch?  Absolutely not.  Sharing its goals and priorities, experiments and results, learnings and decisions shows employees, partners, and other companies what it means to innovate and lead.

Is LEGO perfect? No.

Is it trying to be better? Yes.

Isn’t that what we want?

Image Credit: Pixabay

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Innovation or Not – Liquid Trees

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Innovation or Not - Liquid Trees

GUEST POST from Art Inteligencia

Innovation has become the driving force behind progress in today’s world. From cutting-edge technologies to groundbreaking scientific discoveries, we are continuously witnessing the power of human ingenuity. However, amidst all the revolutionary advancements, it is essential to question what truly defines innovation. Do we only consider groundbreaking and high-tech inventions as innovative? Or can innovation be found in something as simple as nature itself?

One such marvel of nature that challenges our perception of innovation is the concept of liquid trees. Unlike traditional trees, liquid trees are not rooted in the ground, nor do they possess a solid structure. Instead, they are composed of water particles suspended in the air, forming swirling, fluid-like formations. And while this might seem like a whimsical notion, it holds the potential to revolutionize our understanding of sustainability and environmental conservation.

Liquid trees, also known as aeroplankton or aeroplanktic organisms, are a prominent example of biomimicry – the imitation of nature’s designs to solve human problems. By emulating the way these organisms harness air and water for sustenance, we can develop innovative solutions for resource management and energy production.

One of the most striking aspects of liquid trees is their ability to extract moisture from the atmosphere. Just like traditional trees draw water from the ground through their roots, these ethereal counterparts can collect airborne water particles and convert them into a usable form. This unique trait makes liquid trees a potential solution for regions facing water scarcity.

Imagine a world where buildings are equipped with liquid tree-inspired systems that capture and condense atmospheric water vapor, providing a sustainable source of freshwater. Not only would this technology alleviate the pressure on depleted groundwater reserves but it would also reduce our carbon footprint by eliminating the need for energy-intensive water treatment processes.

Aeroplankton also holds promise in the realm of renewable energy. The flow and circulation of air around liquid trees are akin to those in wind turbines, presenting an opportunity for wind energy innovation. By mimicking the dynamics of these floating organisms, we can design wind turbines that are more efficient and less intrusive to the environment. Imagine harnessing clean energy from the gentle swaying of these ethereal structures, without the need for expansive wind farms blotting the landscape.

Moreover, liquid trees can serve as a reminder of the beauty and resilience found in nature. In an increasingly urbanized world, where concrete jungles replace lush green forests, we often lose sight of the wonders around us. The concept of liquid trees challenges us to appreciate the elegance and adaptability of nature’s designs and incorporate them into our own technological advancements.

Innovation is not limited to high-tech gadgets or intricate algorithms. It encompasses any creative solution that pushes the boundaries of what we perceive as possible. Liquid trees serve as a humbling reminder that sometimes the most ingenious ideas can be found in the simplest of forms.

As we strive for sustainable solutions and progress towards a greener future, let us not overlook the lessons nature has to offer. By embracing the concept of liquid trees and exploring its applications, we can redefine innovation and lead the way towards a more harmonious coexistence with our environment. After all, the true test of innovation lies in our ability to find inspiration in the natural world and create something truly extraordinary.

But There is Another Kind of Liquid Tree

Innovation continues to surprise us with extraordinary ideas that challenge our perception of what is possible. One such remarkable innovation in the field of sustainability is the Liquid 3 photo-bioreactor. Drawing inspiration from liquid trees and biomimicry, these photo-bioreactors take the concept of harnessing renewable energy from nature to new heights.

Liquid 3 photo-bioreactors, also known as algae bioreactors, capitalize on the remarkable ability of photosynthetic microorganisms to convert sunlight and carbon dioxide into valuable products, including biofuels and high-protein biomass. These bioreactors consist of transparent acrylic tubes filled with a suspension of algae, which are then immersed in a liquid medium.

The process of photosynthesis takes place within the tubes as sunlight penetrates, providing energy for the algae to drive their growth. Depending on the specific intent, the algae can be engineered to produce specific compounds or simply utilized to capture and store carbon dioxide from the atmosphere, reducing greenhouse gas emissions.

One of the most significant advantages of Liquid 3 photo-bioreactors is their efficiency in converting sunlight into energy. Unlike traditional biofuel production methods, which require vast land areas for growing crops like corn or sugarcane, these bioreactors can be installed in smaller spaces, such as urban rooftops or alongside buildings’ exteriors. This vertical integration allows for the absorption of sunlight from various angles, optimizing energy capture.

Furthermore, Liquid 3 photo-bioreactors have shown impressive productivity compared to traditional crop-based systems. Algae in these bioreactors can multiply rapidly, thanks to their highly efficient nutrient absorption and growth rates, resulting in higher yields of valuable biomass. Additionally, algae cultivation does not compete with food crops for arable land, making it a sustainable alternative for biofuel and food production.

The potential applications for Liquid 3 photo-bioreactors extend beyond energy production. They have shown promise in wastewater treatment, where algae can effectively remove pollutants and excess nutrients from water bodies. This approach not only cleanses the water but also turns a waste product into a valuable resource, as the harvested algae can be further processed for various applications, including fertilizer production or bioplastics.

Liquid 3 photo-bioreactors emphasize the interconnectedness between sustainable energy production, environmental stewardship, and economic benefits. By utilizing these bioreactors, we can reduce our reliance on fossil fuels, mitigate climate change by capturing carbon dioxide, and generate valuable by-products that contribute to a circular economy.

As with any innovation, there are challenges to overcome. Scaling up the production and implementation of Liquid 3 photo-bioreactors remains an area of active research and development. Identifying the ideal algae strains for maximum productivity, optimizing the system’s design and operational parameters, and ensuring cost-effectiveness are all key factors to consider.

However, the potential benefits far outweigh the challenges. Liquid 3 photo-bioreactors offer a promising solution to the pressing global issues of energy sustainability, carbon emissions, and waste management. By embracing this innovative approach, we can make substantial progress towards a greener and more sustainable future.

In conclusion, Liquid 3 photo-bioreactors intertwine the principles of biomimicry, renewable energy, and circular economy. By emulating the efficiency of natural photosynthesis, these bioreactors bring us closer to achieving a harmonious and sustainable coexistence with our environment – absorbing carbon dioxide and adding oxygen to urban centers equivalent to the impact of two ten-year old trees. As we continue to explore and develop these remarkable technologies, let us remain open to the lessons nature has to offer, using innovation as a catalyst for positive change.

It will be interesting to see whether either of these types of liquid trees catch on. I guess only time will tell.

So, what do you think? Innovation or not?

Image credit: Liquid 3


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The Triple Bottom Line Framework

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The Triple Bottom Line Framework

GUEST POST from Dainora Jociute

Money, money, money. It wasn’t so long ago that it was always sunny in the rich man’s world. But today, things just aren’t that easy, and talking about money isn’t enough.

Businesses cannot thrive and survive in a competitive environment with only one bottom line – profit.

United Nations Global Compact report points out that such issues as poverty, an uneducated workforce, and resource scarcity will, and already is, causing issues for business growth. In addition, both investors and potential talents are looking deeper than just the company’s financial success before they commit. So, next to Profit, business’s effect on People and the Planet are just as crucial measurement indicators.

“Poverty, conflict, an uneducated workforce, and resource scarcity for example, are also strategic issues for business success and viability.”
– UN Global Compact

And what do you get once you combine all three? Planet, People, and Profit are often referred to as the three pillars of sustainability. However, for a business to define sustainability, to have clear and reachable goals, and in return to have a fitting strategy to reach those goals can be challenging.

This is where the need and benefits of the triple bottom line framework become most evident.

What is the Triple Bottom Line Framework?

The term triple bottom line (TBL) was coined by John Elkington, corporate environmentalist, and author back in 1994. It isn’t exactly a new concept and we had plenty of time to see it being tried on by different companies like Patagonia, Unilever, Novo Nordisk and so many more. It is evident that the triple bottom line approach works.

So, what exactly is TBL?

Many like to argue that it is just another accounting tool. Yet in Elkington’s own words, it is a sustainability framework that examines an organization’s social, environmental, and economic impact. It measures a business’s environmental efforts (“planet account”), social well-being (“people account”), and a fair economy. It can be implemented by a business, a non-profit organization, or a governmental institution. It is flexible and adaptable.

Decades before the triple bottom line, the dominant belief was that the only responsibility a business has is to generate profit. It was set in place by economist Milton Friedman and his shareholder theory. With TBL, Elkington challenged the status quo by proposing accountability to all stakeholders and not just shareholders.

In addition to helping with planning sustainable growth, the triple bottom line can act as a reporting tool, thus, it focuses on long-term results and not just one-off campaigns to gain some publicity – can an organization sustain a just economy, environmental resources, and human capital?

Once we shift our attention from quarterly reports to a span of multiple years,

sustainability is no longer just a “to-do” list, but an opportunity that will rejuvenate business in an economy that does not exploit natural resources and social systems.

Triple Bottom Line 3 Areas

The Three Pillars of Sustainability

The triple bottom line goes hand in hand with the 1987’s Brundtland Report and the three key areas of development established by it: environmental conservation (Planet), economic development (Profit), and social sustainability (People).

Yet the definition of sustainability is a little bit more complex than that.

It is natural, that once you think of sustainability, your mind might wander to emissions, deforestation, climate change, and other related issues. For the longest, environmental changes have been the most reported and the most talked about topic. And for a good reason. The environmental pillar or Planet is considered to be the most important component of sustainability as it contains the social and economic systems within it.

But just like there wouldn’t be people without a planet, there wouldn’t be a business without people, and there wouldn’t be prosperity without business. All three areas are tightly interconnected and initiatives to address one often overlap with the other area, and naturally, when everything is so tightly knit, trade-offs are inevitable.

Sometimes decisions must be made to accommodate people at the cost of the environment OR decisions must be made to solve one environmental issue at the cost of another. A good example here would be an effort to reduce the consumption of single-use plastic bags by offering paper bags instead. Paper bags are easier to recycle and even if they do end up in a landfill, the lifespan of paper is drastically shorter than plastics. However, paper bag production is resource-heavy, consuming “four times more energy than plastic bags”.

Trade-offs make it impossible to talk about sustainability without considering all the pillars equally. Implementing the triple bottom line helps a business to form a holistic view of it.

Sustainability strives for:

  • Viable environmental-economic impact: business is executed with the environment and resources in mind, when possible, looking for green solutions or giving back, i.e., reforestation work.
    Trade-off: green business solutions can be intrusive and negatively affect private property (i.e., wind turbines in neighboring lands).
  • Bearable socio-environmental impact: education and awareness allow people to make environmentally conscious decisions, curb consumption and develop healthy habits that directly impact the environment.
    Trade-off: minimal consumption and complete protection of the land stalls economic growth.
  • Equitable socio-economic impact: people have an opportunity to work and earn a fair wage, and business strives to increase the general welfare of the people and increase the standard of living. This generates economic opportunity for both businesses and individuals. Corporate taxes also play a crucial role here – it is thanks to taxes that an organization contributes to supporting various societal programs.
    Trade-off: new business ventures can create more jobs but increase consumption of nonrenewable materials.

Planet

Planet bottom line focuses on an organization’s environmental impact, both positive and negative. Sustainable innovation (or on the environmental scale – eco-innovation), helps an organization to place its focus on the environment, by improving its production, manufacturing, marketing, and also all the in-house functions.

Impact on the planet can be created by such efforts as choosing natural and/or locally sourced materials, upcycling waste, using recyclable components, reducing unnecessary travel time, or saving energy usage.

Positive environmental impact can seem grandiose and nearly impossible to achieve. Not every organization is equally equipped to take drastic measures and pursue such efforts as reforestation, ocean clean-up, or full refurbishment of manufacturing facilities. Thus, while many regulations and recommendations exist, there is no one-size-fits-all approach to sustainability. Reporting and measurement really depend on such variables as the organization’s industry, location, size, and financial capabilities.

In addition, pursuing this bottom line can put the business in limbo, forcing it to decide between faster or more sustainable goods delivery; lower-costing or ethically sourced materials, and so on. These and similar initiatives can seem costly and counterproductive to what a business should be doing – generating profit. Yet like with most things in life, sustainability is not just black or white and it would not be a prevailing topic if there wasn’t true profit to be gained.

Benefits of The Planet Bottom Line

Besides the obvious emotional benefits of saving the earth, just feeling good while doing good, and complying with regulations there are practical reasons why you should pursue Planet bottom line:

  1. Satisfying consumer demand: GreenPrint’s 2022 Business of Sustainability Index indicates that demand for sustainable services and products is growing with 69% of respondents saying that “a product’s environmental friendliness is important to their purchasing decision” and 78% agreeing that they are interested in buying from environmentally friendly businesses.
  2. New business opportunities: a shift towards net zero is creating demand for new green solutions. A recent report by McKinsey indicates that reaching net zero by 2050 requires “investments amount to $9.2 trillion per year, of which $6.5 trillion annually would go into low-emissions assets and enabling infrastructure”.
  3. Cost reduction: in another report McKinsey notes that environmentally focused initiatives can “improve operating profits by up to 60%”, by reducing unnecessary waste as well as the usage of water or raw materials, that due to growing scarcity, are becoming more and more expensive.
  4. Improved brand image: knowing that consumers are seeking environmentally friendly products and services, it makes sense to invest in and report on sustainability initiatives. It improves the brand’s image which can lead to increased sales. In addition, nowadays, stakeholders can easily hold an organization accountable for action or inaction, thanks to the speed at which information spreads on social media. Even the smallest misstep by a brand can be rapidly broadcast to millions, causing damage, and leading to lost revenue.
  5. Minimizing regulatory risks: Staying within safe lines of regulations keeps your organization from fines and penalties. Plus, it’s typically easier and less expensive to take such measures proactively, than it is to do so when your hand is forced.
  6. Competitive edge: by excelling at and advocating for an environmental cause, an organization can put pressure on its competitors and use the achievement as a competitive advantage.

Initiatives to Consider

As mentioned earlier, pursuing The Planet bottom line does not necessarily mean making big and drastic changes. Environmentally positive impact-creating initiatives that you can consider are:

  • Recycling opportunity in-house and limited use of materials (i.e., unnecessary printing).
  • Reducing travel, remote work opportunities, and/or public transportation benefits.
  • Partnerships with green businesses and buying locally manufactured goods.
  • Optimizing and reducing energy consumption.
  • Seasonal company-wide green initiatives (i.e., day to collect trash or volunteer).
  • Becoming an ambassador of an environmental cause and advocating for it.
  • Creating an option for customers and employees to donate instead of receiving material gifts.
  • Workshops and training to educate and bring awareness on environmental issues and how the organization can positively impact it.
  • Find innovative ways to be more effective or efficient in your operations by involving employees.

The bigger picture will always be comprised of smaller bits and pieces and while the above-mentioned initiatives might seem small, put together they can make an impact. That’s why giving your employees a voice and engaging the whole organization is so important. While it might sound like a big and complex feat, right tools, such as Viima can simplify the process allowing you to run idea challenges on sustainable innovation and development topics.

Reporting

Now, while environmental initiatives are important on many different levels, from a business point of view, they should contribute to profit generation. Thus, once your Planet bottom line initiatives are in place and running, it is crucial to report on them either on your website, or in your annual business or sustainability report.

The Non-Financial Reporting Directive (NFRD) came into effect back in 2018 requiring public interest companies with more than 500 employees to report on how they are dealing with sustainability matters. In 2024 we will see an additional directive on Corporate Sustainability Reporting which will apply to large companies that meet 2 of the following 3 criteria: more than 250 employees; more than €40 million net turnover; more than €20 million on the statement of financial position.

But reporting should be considered by small organizations too as talking about your achievements beyond the mandatory reporting will positively affect your brand image, it will increase transparency, and improve your reputation.

Reporting and measurement of positive impact can be quite difficult, especially if it is a voluntary initiative and is not based on any regulation-implied requirements. Below is a list of KPIs to consider:

  • Information on electricity consumption.
  • Information on fossil fuel consumption.
  • Information on waste management.
  • Change in land use/land cover.
  • Reduction in greenhouse gas emission.
  • Amount of waste generated and, when relevant – amount recycled.
  • Amount of ethically sourced materials.
  • Information on volunteering or charitable work done.
  • Information on new local, sustainable partnerships.

People and the Triple Bottom Line Pexels

People

People of the triple bottom line encompasses all the people included in or affected by a business.

It goes far beyond just the small circle of shareholders. This category includes (but is not limited to) employees, suppliers, wholesalers, customers, local or global communities within which the business operates, and future generations. Some people like to emphasize the future generations by separating it into the fourth sphere and adjusting the framework’s name to quadruple the bottom line. Yet in J. Elkington’s views, the future generations are simply an inseparable part of society, and it fits just perfectly in the People category.

There are certain aspects of this bottom line that might be regulated by local or regional governing bodies. For example, local labor law might indicate a specific number of working hours per week, how long lunch breaks your employees are eligible to take or what kind of health insurance the company must provide. However, as with all things sustainability, social responsibility extends beyond the bare minimum – it is a business’ voluntary and proactive way of recognizing its impacts on stakeholders.

The People aspect is an organization’s social impact or social responsibility. And as earlier cited UN Global Compact states, “social responsibility should be a critical part of any business because it affects the quality of a business relationship with stakeholders”.

Benefits of The People Bottom Line

Social initiatives might not be seen as profitable in the short run, but on a bigger scale, doing what is right and doing good positively affects the company’s standing amongst its competitors. For example, such initiatives can positively affect the following:

  1. Employee retention: Companies that invest in their employees’ satisfaction end up saving resources in the longer run. Time and money spent searching, hiring, and training employees can be invested in different opportunities. In addition, people that want to stick around in a company indicate good organizational health and improve brand image.
  2. Attraction of top talents: More and more routine work is being automated, and value is starting to be increasingly created by fewer people of higher talent creating systems, processes, and technology (=innovations) that drive value. Thus, attracting these top talents is increasingly important, but more and more of these people are these days motivated by factors such as the purpose and mission of the organization beyond just compensation, career growth, etc. more traditional factors.
  3. Customer loyalty: Companies willing to walk that extra mile, give to societies or contribute to positive impact will reap the benefits of a better brand image, and in line with their customers’ social values they will naturally have a chance to retain old and attract new customers.
  4. Raising capital: Socially responsible investing is constantly growing and the opportunity to attract investors depends on the organization’s sustainability achievements, the social aspect and how your organization treats people are always on the list of things to be evaluated.
  5. Avoiding risk: Strong commitment to social initiatives will eliminate work-disrupting and reputation-damaging risks. Any mistreatment of an employee or other community member can cause a severe backlash that will affect the organization’s profitability. In addition, the business’s focus on social responsibility in return creates supply chain security.
  6. Expanding the market: If most people can’t afford to buy your services, the size of your market dramatically increases if you are able to a) lower the prices of your products by decreasing costs, and/or b) by helping improve the income of said people. Combining both can be a powerful way to grow the business and create a more positive impact all around you.
  7. Source for innovation: As mentioned in our earlier article social issues need to be addressed and this in return can create business opportunities – “more than 80% of economic growth comes from innovation and application of new knowledge.” People-centric innovation (social innovation) enables the business to tap into that growth and reap benefits.

Initiatives to Consider

There are a lot of organizations that go far beyond the basic in-house social needs and are willing (and are financially capable) to give back to communities with charity work, donations, education grants, and various volunteering and community engagement initiatives.

However, not every company is capable of running such initiatives. Smaller-scale improvements like supporting your employees in setting up home offices with recycled or new equipment can be a great morale boost. In return, it creates comfort for people to work from home, reducing time spent commuting and/or using cars, leaning toward the Planet bottom line. With sustainability, every small effort counts.

  • Paid internships for students.
  • Organizing educational projects for externals (i.e., coding academy for students, job searching training).
  • Skill training and learning opportunities for employees.
  • Internal anti-racist training.
  • Employee surveys or feedback to keep everyone in the loop.
  • Salary transparency.
  • Employee stock plan.
  • Volunteering work within the nearest communities.

Reporting

Topics to report on and how your organization’s initiatives affected them can be:

  • Demographics of your employees and partners (i.e., working with small or minority-owned businesses).
  • Vacation days collected and used to see whether employees are rested and not overworked.
  • The average difference between wages and finances needed for minimum living standards in the area.
  • Average commuting time.
  • Average employee benefits.
  • Information on diversity of employees.
  • Job safety KPIs (i.e., reported incidents, corrective actions taken).
  • The number of new jobs created.
  • Hours spent on employee or external communities’ training.
  • Information on second-tier suppliers (i.e., where and how your first-tier suppliers are sourcing materials).

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Profit

Profit by default seems to be the most analyzed and the best-understood segment of all the three covered in this article. By definition, profit means “money that is earned in trade or business after paying the costs of producing and selling goods and services”.

TBL is not meant to discount profit in any way – rather incorporate it into the other two legs of sustainability: investment in social initiatives or environmental projects relies directly on profit and a company that does not do well financially cannot contribute to the other areas – social and environmental impact.

Profit refers to the influence that the organization is creating on the whole environment within which it operates: ethical means to earn a profit; cooperating with and supporting ethical partners; fair wages and full taxes paid.

Profit as a component of TBL is pretty straightforward, yet there are certain aspects that might be confusing. And it seems to arise from a two-sided view of Profit: the philanthropic take with emphasis to give back to society as a charity, and pure profit to satisfy shareholders.

However, when talking about sustainability and the triple bottom line, these two sides are inseparable. The company can stay in business and drive value for the People and the Planet only if it makes a profit.

The triple bottom line’s Profit is a cycle: a business that makes a profit can then invest in innovation, creating a positive impact on the Planet and the People; can then pay taxes that in return will be used for social good; can then grow to create jobs for People and so on.

Key Points

Conclusion

The triple bottom line like other sustainability-oriented initiatives can seem quite idealistic in a world still strongly focused on profit.

But as McKinsey report over the past 5 years, investment into sustainable funds has been on a rise and even if current environmental, social, and governance (ESG) frameworks are far from perfect, ESG considerations are becoming more important in companies decision making. In addition, investing in sustainable innovation does result in stronger economies, higher living standards, and more opportunities for individuals.

There are no better words, to sum up this article than John Elkington’s words:

“To truly shift the needle, however, we need a new wave of TBL innovation and deployment. None of these sustainability frameworks will be enough, as long as they lack the suitable pace and scale — the necessary radical intent — needed to stop us all overshooting our planetary boundaries.”

The challenge here is that businesses still must satisfy shareholders and to deliver the value they have to make tradeoffs. There’s no one golden rule on how to satisfy all three areas of TBL equally, it is a continuous, balancing act, and decision-making should be based on long-term goals. But the fact is, that decisions must be made, and it is the best time to go beyond planning and start implementing.

This article was previously published in Viima’s blog.

Image Credits: Unsplash, Viima, Pexels

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Navigating Disruption with Clarity

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Purpose as Your North Star

Navigating Disruption with Clarity

GUEST POST from Chateau G Pato

In a world defined by constant disruption, where technologies, markets, and customer needs shift at an unprecedented pace, organizations are often left feeling adrift. The old playbooks of strategic planning and forecasting are proving insufficient to navigate the volatility. In this environment of chronic uncertainty, I believe the most powerful anchor for any organization is a clearly defined and deeply embedded sense of purpose. Purpose, when authentically articulated and lived, acts as a North Star, providing clarity, inspiring action, and uniting a workforce to not just survive disruption, but to thrive within it.

Purpose is more than just a mission statement or a marketing slogan. It is the fundamental reason an organization exists beyond making a profit. It is the why behind the what. When a company’s purpose is its guiding light, it helps leaders and employees make better decisions, prioritize more effectively, and remain resilient in the face of setbacks. Purpose creates a shared sense of meaning that transcends individual roles and responsibilities, fostering a culture of trust and collective commitment. It gives people a reason to come to work every day that is bigger than a paycheck.

Navigating disruption with purpose requires a human-centered approach to strategy. It’s about moving from a rigid, top-down model to one that is driven by a shared sense of why. This enables organizations to adapt more quickly, as everyone is aligned on the ultimate goal, even if the path to get there needs to change. An organization with a strong purpose will find that its people are more engaged, more innovative, and more willing to go the extra mile. The key elements for leveraging purpose as a navigational tool include:

  • Authenticity: The purpose must be genuine and deeply ingrained in the company’s DNA, not an afterthought.
  • Clarity: The purpose must be simple, clear, and easy for every employee to understand and articulate.
  • Alignment: All business decisions, from product development to hiring, should be evaluated against the organization’s purpose.
  • Empowerment: Employees must be empowered to act on the purpose, not just told what it is. This fosters ownership and bottom-up innovation.
  • Storytelling: The organization’s purpose should be constantly reinforced through stories that illustrate its impact on customers, communities, and employees.

Case Study 1: Patagonia’s Environmental Activism as a Business Strategy

The Challenge: Competing in a Fast-Fashion Market with a Commitment to Sustainability

Patagonia, the outdoor apparel company, operates in a highly competitive market often driven by low prices and rapid consumption. The company’s business model, which prioritizes durability and environmental responsibility, stands in stark contrast to the fast-fashion industry. Navigating this landscape while remaining true to its values presented a constant challenge.

The Purpose-Driven Strategy:

Patagonia’s purpose is “We’re in business to save our home planet.” This isn’t just a slogan; it is the core of their business strategy. Every decision, from material sourcing to marketing campaigns, is evaluated through this lens. When faced with disruption, such as a downturn in the economy, Patagonia doesn’t compromise on its purpose. Instead, it doubles down, knowing that its loyal customer base values this commitment. For example, during Black Friday, a time when most retailers encourage consumption, Patagonia famously ran a campaign telling customers, “Don’t Buy This Jacket.” This counterintuitive approach reinforced their purpose and created an even stronger connection with their customers. Their commitment to their purpose has allowed them to attract top talent, build a fiercely loyal community, and remain profitable while staying true to their core values.

The Results:

Patagonia has not only survived but thrived by leveraging its purpose as a navigational tool. It has demonstrated that a strong, authentic purpose is a powerful source of competitive advantage and resilience. The company’s clear “why” has enabled it to make bold decisions that might seem risky from a traditional business perspective, but which ultimately resonate deeply with its customers and employees. This case study shows that a purpose-driven approach provides a clear framework for navigating disruption, allowing a company to stand out and build a sustainable business in the long term.

Key Insight: An authentic and unwavering purpose can act as a powerful differentiator and a source of competitive advantage, enabling an organization to make bold, values-aligned decisions that build long-term loyalty and resilience.

Case Study 2: Microsoft’s Cultural Transformation under Satya Nadella

The Challenge: A Stagnant Culture and Missed Opportunities in a Rapidly Changing Tech Landscape

In the early 2010s, Microsoft was widely perceived as a company that had lost its way. Its culture was siloed and competitive, and it had missed key shifts in the tech industry, such as the rise of mobile computing. The company was in a state of internal turmoil, lacking a unified vision to guide it through the ongoing disruption. New leadership was needed to redefine the company’s direction and reignite innovation.

The Purpose-Driven Strategy:

When Satya Nadella became CEO, he didn’t start with a new product strategy; he started with purpose. He re-framed Microsoft’s mission to “empower every person and every organization on the planet to achieve more.” This purpose was intentionally broad and human-centered. It was a clear departure from the company’s past focus on “putting a computer on every desk.” This new North Star guided every subsequent strategic decision, from embracing open-source software and cloud computing to acquiring LinkedIn and GitHub. The purpose served as a unifying force, helping different business units collaborate and innovate together. It allowed the company to pivot into new markets with a clear sense of direction, moving beyond its traditional software dominance.

The Results:

Nadella’s purpose-driven leadership led to a remarkable cultural and business renaissance at Microsoft. The company’s stock price soared, and it regained its position as a global technology leader. By using a clear and human-centered purpose as its guide, Microsoft was able to navigate the complex and disruptive tech landscape with newfound clarity and agility. This case study demonstrates how a renewed sense of purpose, when effectively communicated and integrated into the culture, can act as a powerful engine for change, enabling a large organization to reinvent itself and thrive in a period of intense disruption.

Key Insight: Reclaiming and re-framing an organization’s purpose can serve as the most effective catalyst for a large-scale cultural transformation and business revitalization.

Making Purpose Your Guiding Light

In an era of relentless disruption, a clearly defined purpose is no longer a luxury—it is an essential strategic asset. It provides the clarity needed to make tough decisions, the inspiration required to foster innovation, and the resilience necessary to weather any storm. As leaders, our role is not just to set a course, but to articulate a compelling “why” that will serve as our collective North Star. By putting purpose at the center of our strategy, we can move from being passive observers of change to active agents of a future we are all proud to create.

Extra Extra: Because innovation is all about change, Braden Kelley’s human-centered change methodology and tools are the best way to plan and execute the changes necessary to support your innovation and transformation efforts — all while literally getting everyone all on the same page for change. Find out more about the methodology and tools, including the book Charting Change by following the link. Be sure and download the TEN FREE TOOLS while you’re here.

Image credit: Pixabay

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Case Studies: Companies Leading in Sustainability

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Case Studies: Companies Leading in Sustainability

GUEST POST from Chateau G Pato

“Innovation transforms the useful seeds of invention into widely adopted solutions valued above every existing alternative.” – Braden Kelley

In today’s rapidly evolving global landscape, the conversation around business success has fundamentally shifted. It’s no longer solely about profit margins and market share; increasingly, it’s about purpose, impact, and planetary stewardship. As a thought leader in human-centered change and innovation, I’ve witnessed firsthand how a genuine commitment to sustainability isn’t just a moral imperative, but a powerful catalyst for innovation, resilience, and long-term competitive advantage. Companies that embed sustainable practices into their core DNA are not merely surviving; they are thriving, attracting top talent, fostering deeper customer loyalty, and unlocking entirely new avenues of value creation. This article will delve into compelling case studies of organizations that are not just talking about sustainability but are actively leading the charge, demonstrating that a greener future is also a more prosperous one.

The traditional linear “take-make-dispose” economic model is no longer viable. We face unprecedented environmental challenges – climate change, resource depletion, biodiversity loss – that demand a systemic shift. Smart businesses recognize this not as a burden, but as a fertile ground for innovation. By re-imagining products, processes, and entire business models through a sustainability lens, companies can reduce costs, mitigate risks, enhance their brand reputation, and even cultivate new markets. This human-centered approach to sustainability focuses on how these changes benefit people – employees, customers, communities, and future generations – making the transition not just logical, but deeply resonant.

The Strategic Imperative of Sustainability

For too long, sustainability was relegated to the realm of corporate social responsibility (CSR), often seen as an adjunct to core business operations. This perception is rapidly changing. Today, sustainability is increasingly viewed as a strategic imperative, directly linked to a company’s ability to innovate, adapt, and secure its future. Consider the growing pressure from consumers, investors, and regulators. Consumers are more conscious than ever about the environmental and social impact of their purchases. Investors are increasingly using ESG (Environmental, Social, and Governance) criteria to evaluate companies. And governments worldwide are enacting stricter environmental regulations.

Beyond external pressures, internally, a focus on sustainability can drive significant operational efficiencies. Reducing waste, optimizing energy consumption, and circularizing material flows directly translate to cost savings – a tangible return on investment. It also fosters a culture of ingenuity and purpose, empowering employees who want to contribute to something meaningful. This is where human-centered innovation truly shines – when the pursuit of profit aligns seamlessly with the pursuit of a better world.

Case Study 1: Interface Inc. – Redefining the Industrial Footprint

When it comes to demonstrating the profound potential of a sustainability-driven transformation, Interface Inc., the global manufacturer of modular carpet tiles, stands as a beacon. Their journey began in the mid-1990s, when founder Ray Anderson had an epiphany – his company was essentially a “plunderer of the earth.” This realization spurred a radical shift, culminating in “Mission Zero” – a bold commitment to eliminate any negative impact on the environment by 2020. This wasn’t about minor tweaks; it was about fundamentally redesigning their entire operation.

Key Innovations and Achievements:

  • Closed-Loop Manufacturing: Interface pioneered the “ReEntry” program, taking back old carpet tiles from customers (regardless of the manufacturer) and recycling them into new products. This significantly reduced landfill waste and reliance on virgin materials, creating new jobs in the collection and processing phases, directly benefiting local economies and the people within them.
  • Material Innovation: They aggressively pursued the use of recycled and bio-based materials, including yarn made from discarded fishing nets (the Net-Works™ program). This initiative, in partnership with local communities in developing countries, provided a new source of income for impoverished fishers while cleaning up marine environments – a powerful human-centered outcome.
  • Energy Efficiency & Renewables: Interface dramatically reduced its energy consumption per unit of production and transitioned to renewable energy sources for its manufacturing facilities, leading to cleaner air for communities surrounding their plants.
  • Product Design for Sustainability: Innovations like TacTiles™ (adhesive-free installation) further reduced environmental impact during product use, making installations healthier for workers by eliminating harmful chemical fumes.

The results were astounding. By 2019, Interface largely achieved Mission Zero, reducing manufacturing waste to landfill by 92%, greenhouse gas emissions by 96%, and water intake intensity by 89% (compared to 1996 levels). Crucially, this environmental leadership was coupled with strong financial performance, proving that sustainability is not a cost center, but a driver of competitive advantage and profit. Their subsequent mission, “Climate Take Back™,” aims to go even further, becoming a carbon-negative enterprise.

Case Study 2: Patagonia – Purpose-Driven Authenticity

Another exemplary leader in the sustainability space is Patagonia, the outdoor apparel and gear company. From its inception, Patagonia has been built on a foundation of environmental and social responsibility, driven by founder Yvon Chouinard’s deep connection to nature. Their mission statement, “We’re in business to save our home planet,” isn’t just a slogan; it’s a guiding principle that permeates every aspect of their operations, product design, and advocacy.

Key Innovations and Achievements:

  • Quality and Durability: Patagonia’s commitment to creating high-quality, long-lasting products is a fundamental sustainability strategy. Their “Worn Wear” program encourages customers to repair, reuse, and recycle their gear, offering free or low-cost repair services and even reselling used items. This directly combats fast fashion’s wasteful cycle, saving consumers money and fostering a more conscious relationship with their belongings.
  • Sustainable Materials: They were early adopters of organic cotton and recycled polyester, and continuously research and invest in innovative, lower-impact materials. This commitment reduces exposure to harmful pesticides for farmers and factory workers, directly improving human health.
  • Supply Chain Transparency & Fair Labor: Patagonia is a leader in ensuring ethical labor practices and environmental stewardship throughout its complex global supply chain. Their commitment to fair wages and safe working conditions, often achieved through Fair Trade Certified factories, directly uplifts the lives and communities of garment workers.
  • Environmental Activism & Giving: Through “1% for the Planet,” Patagonia donates a significant portion of its sales to environmental grassroots organizations, and actively campaigns on environmental issues, using its brand platform for advocacy. This empowers countless individuals and communities to take direct action to protect their local environments.

Patagonia’s authentic commitment has fostered an incredibly loyal customer base and a powerful brand identity. They demonstrate that consumers are willing to pay a premium for products from companies that align with their values. Their success underscores the power of purpose-driven business, where environmental responsibility is not a separate initiative but an integral part of their brand narrative and value proposition. This deep integration of values and operations allows them to innovate not just in products, but in their very business model, leading to greater resilience and impact.

Lessons from the Leaders: Actionable Insights

What can we glean from the journeys of Interface and Patagonia? Their success offers invaluable lessons for any organization seeking to embed sustainability and human-centered innovation:

  • Visionary Leadership is Key: Both companies were driven by a bold, often personal, commitment from their founders, demonstrating that top-down vision is crucial for systemic change.
  • Integrate, Don’t Segregate: Sustainability is not an add-on; it must be woven into the fabric of strategy, operations, product development, and culture.
  • Embrace Circularity: Moving away from linear “take-make-dispose” models towards circular systems that keep materials in use is fundamental for long-term viability and reduces waste.
  • Value Chain Collaboration: Working closely with suppliers, customers, and even competitors across the value chain amplifies impact and accelerates progress.
  • Authenticity Builds Trust: Genuine commitment, transparent reporting, and consistent action resonate deeply with stakeholders and build powerful brand loyalty.
  • Focus on Human Benefit: Framing sustainability initiatives in terms of how they benefit people – employees, communities, customers – makes the change more relatable, desirable, and ultimately, sustainable.

The Future is Sustainable and Human-Centered

The examples of Interface and Patagonia are not anomalies; they are blueprints for the future of business. They illustrate that embedding sustainability at the heart of an organization unleashes innovation, builds stronger relationships with stakeholders, and ultimately drives superior long-term performance. It demands a human-centered approach – understanding the needs of people and the planet, and designing solutions that serve both.

For leaders, the challenge and opportunity lie in fostering a culture where sustainability is seen not as a compliance burden, but as a source of competitive advantage and a pathway to meaningful impact. It requires brave leadership, cross-functional collaboration, and a willingness to rethink established norms. The companies that will truly lead in the coming decades will be those that embrace this profound shift, demonstrating that profitability and planetary health are not mutually exclusive, but intrinsically linked.

Ready to unlock the power of human-centered sustainability for your organization?

Explore how Braden Kelley’s Human-Centered Change™ methodology can guide your transformation and cultivate enduring innovation.

Extra Extra: Because innovation is all about change, Braden Kelley’s human-centered change methodology and tools are the best way to plan and execute the changes necessary to support your innovation and transformation efforts — all while literally getting everyone all on the same page for change. Find out more about the methodology and tools, including the book Charting Change by following the link. Be sure and download the TEN FREE TOOLS while you’re here.

Image credit: Unsplash

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Regulations and Policies Promoting Sustainability

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Regulations and Policies Promoting Sustainability

GUEST POST from Art Inteligencia

The drumbeat of sustainability has grown from a faint whisper to a resounding roar. Once relegated to the fringes of corporate social responsibility, sustainability is now a core strategic imperative for businesses, a critical concern for citizens, and an undeniable challenge for governments. But how do we truly accelerate this vital transition? The answer, surprisingly to some, lies not just in market forces or individual action, but significantly in the **intelligent application of regulations and policies.**

For too long, the narrative has often pitted regulation against innovation, suggesting that rules inherently stifle progress. As a practitioner of human-centered change and innovation, I argue precisely the opposite: thoughtfully designed regulations and policies are powerful catalysts for innovation, driving businesses to find more efficient, less impactful, and ultimately more profitable ways of operating. They create a level playing field, reward pioneering efforts, and fundamentally shift the calculus of what’s possible and profitable.

Beyond Compliance: The Dual Engine of “Push” and “Pull”

Effective regulations and policies operate on a sophisticated “push” and “pull” dynamic. **”Push” mechanisms** establish essential baselines, prohibit demonstrably harmful practices, and set minimum performance standards. Consider stringent emissions limits for industrial facilities, bans on certain toxic chemicals, or mandates for responsible waste disposal. These “push” measures compel businesses to directly confront and reduce their negative environmental footprint, often necessitating immediate operational adjustments.

However, the true transformative power often emerges from **”pull” mechanisms.** These incentives, subsidies, and market signals actively draw businesses towards desired sustainable behaviors, reward pioneering efforts, and cultivate vibrant markets for green products and services. Examples include generous tax credits for renewable energy installations, agricultural subsidies tied to sustainable farming practices, or government procurement policies that prioritize eco-certified goods. These “pull” forces don’t just mitigate harm; they proactively shape industries and economies towards a greener, more resilient future.

Case Study 1: The European Union’s Groundbreaking Circular Economy Action Plan

One of the most ambitious and comprehensive examples of policy driving systemic sustainability is the European Union’s **Circular Economy Action Plan**. Recognizing that our current linear “take-make-dispose” economic model is fundamentally unsustainable, the EU has embarked on a profound, systemic shift towards a circular economy. This visionary framework aims to minimize waste, keep resources in use for as long as possible, and design products for maximum durability, reuse, and recycling.

This isn’t a singular regulation but a holistic, interconnected suite of policies, including:

  • Extended Producer Responsibility (EPR) Schemes: Mandating that producers bear responsibility for their products throughout their lifecycle, including collection and recycling. This “push” incentivizes designing products that are easier to recycle or reuse, fostering innovation in materials and reverse logistics.
  • Product Design Requirements (Ecodesign): New and expanded rules ensure products are inherently more durable, repairable, and recyclable. These ecodesign mandates now cover a broader range of products beyond energy-related goods, extending to textiles, furniture, and electronics. This directly challenges manufacturers to innovate in materials science, modular design, and even business models, promoting “product-as-a-service” offerings.
  • Ambitious Waste Management Targets: Stringent targets for recycling and waste reduction are set for member states, driving significant investment in advanced sorting, recycling technologies, and the infrastructure necessary for a circular economy.
  • Green Public Procurement (GPP): Public authorities are increasingly mandated or encouraged to leverage their substantial purchasing power to buy sustainable products and services. This creates a powerful “pull” market, signaling strong demand for circular solutions and accelerating their mainstream adoption.
  • Forthcoming Digital Product Passports: These passports will provide comprehensive, transparent information about a product’s origin, durability, repairability, and end-of-life options. This transparency empowers both consumers and businesses to make informed choices, simplifies repair processes, and streamlines material recovery, further pushing industries towards deeper circularity.

The tangible impact is evident: companies across Europe are fundamentally rethinking their entire value chains. This policy framework has spurred a remarkable surge in repair services, remanufacturing initiatives, and sophisticated material recovery solutions, demonstrating how policy can catalyze profound industrial transformation.

Case Study 2: Singapore’s Carbon Tax and Green Finance Initiatives

While many nations grapple with carbon pricing, Singapore offers a compelling case study of a nation implementing a **carbon tax** as a core policy tool to drive sustainability and innovation. Unlike cap-and-trade systems, a carbon tax provides a direct and predictable price signal, incentivizing businesses to reduce emissions. Singapore’s carbon tax, initially S$5 per tonne of greenhouse gas (GHG) emissions, is set to increase to S$25 per tonne in 2024-2025 and S$45 per tonne in 2026-2027, with a long-term goal of S$50-80 per tonne by 2030. This rising price signal creates a powerful “push” for companies to invest in energy efficiency, adopt cleaner technologies, and explore renewable energy sources.

Complementing this “push,” Singapore has also aggressively pursued **Green Finance initiatives** (a “pull” mechanism) to support this transition. The Monetary Authority of Singapore (MAS) has launched various schemes, including:

  • Green Bond Grant Scheme: Encouraging the issuance of green bonds by companies to finance environmentally friendly projects.
  • Sustainable Bond Grant Scheme: Supporting the issuance of sustainability-linked bonds and other sustainable debt instruments.
  • Green and Sustainability-Linked Loan Grant Scheme: Providing grants for companies to obtain green and sustainability-linked loans, incentivizing financing for green projects and sustainable business practices.

The combination of a predictable carbon price and robust green finance mechanisms has spurred significant innovation in Singapore. Industries are actively seeking ways to decarbonize operations, from adopting industrial heat pumps and optimizing energy consumption to exploring carbon capture technologies. The financial sector is innovating new products and services to support green investments, creating a virtuous cycle where policy drives investment, and investment drives further sustainable innovation. This dual approach illustrates how a clear economic signal, coupled with supportive financial mechanisms, can effectively accelerate a nation’s sustainability agenda.

The Human Element: Orchestrating Mindset Shifts and Collaborative Action

Beyond the direct economic and technological shifts, effective regulations and policies play a crucial, often underestimated, role in shaping human behavior and fostering a pervasive culture of sustainability. When the “rules of the game” are redefined, individuals and organizations are compelled to adapt. While this adaptation can initially present challenges, it invariably ignites creativity and problem-solving, pushing boundaries that might otherwise remain untouched.

For policies to be truly impactful and foster continuous innovation, they must be meticulously crafted:

  • Clarity and Consistency: Businesses require certainty to commit to long-term strategic investments. Ambiguous or frequently shifting regulations breed hesitancy and undermine confidence.
  • Performance-Based, Not Prescriptive: Rather than dictating *how* a company must achieve sustainability (e.g., “you must use X technology”), policies should focus on *what* needs to be achieved (e.g., “reduce emissions by Y%”). This allows for diverse, innovative solutions tailored to specific contexts.
  • Collaborative Design and Iteration: Engaging a broad spectrum of stakeholders – industry leaders, academic experts, civil society organizations, and even citizens – in the policy-making process ensures that regulations are practical, effective, and perceived as fair. This collaborative approach also allows for continuous improvement and adaptation.
  • Supportive of Early Adopters and R&D: Policies should actively include mechanisms that reward pioneering efforts, provide incentives for research and development in sustainable technologies, and help de-risk crucial, but sometimes uncertain, sustainable investments.

The Intelligent Path Forward

The journey towards a truly sustainable future is not a passive current to be drifted upon. It demands intentional design, courageous leadership, and a collective willingness to embrace profound change. Regulations and policies, far from being shackles on the hands of progress, are in fact the essential guiding rails and powerful accelerators that can help us navigate the complex, intertwined terrain of environmental responsibility and economic prosperity.

By integrating a deep understanding of the human-centered aspects of change – how policies influence individual and organizational decision-making, encourage cross-sector collaboration, and unlock latent creativity – we can craft regulatory frameworks that not only mitigate environmental harm but actively promote a vibrant, innovative, and truly sustainable global economy. It’s time to champion policies that make sustainability not just an ethical imperative, but the intelligent, economically viable, and ultimately inevitable path forward.

Extra Extra: Futurology is not fortune telling. Futurists use a scientific approach to create their deliverables, but a methodology and tools like those in FutureHacking™ can empower anyone to engage in futurology themselves.

Image credit: Pixabay

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A Human-Centered Approach to Innovating with Purpose

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A Human-Centered Approach to Innovating with Purpose

GUEST POST from Chateau G Pato

In today’s rapidly changing world, the emphasis on technology and digital transformation is more pronounced than ever. However, successful innovation cannot rely solely on advancements in technology. A human-centered approach is paramount to ensure that innovations do not just exist for the sake of change, but serve a meaningful purpose and positive impact on people’s lives.

Case Study 1: IKEA – Simplifying Sustainable Living

As part of its commitment to sustainability, IKEA launched its “Sustainable Living” initiative. Recognizing that people increasingly want to live sustainably but are often put off by the perceived complexity and cost, IKEA focused on simplifying and demystifying sustainable choices.

Through a human-centered design approach, IKEA engaged with customers around the world to understand their sustainability challenges. The insights gained led to practical solutions such as affordable solar panels, water-saving taps, and energy-efficient lighting, all designed with the customer’s ease of use in mind. This initiative proved to be a success, reflecting in increased customer engagement and loyalty.

For more insights on human-centered design principles and how they can be combined with artificial intelligence, explore Braden Kelley’s article on Artificial Innovation.

Case Study 2: IBM’s Inclusive Design Initiative

IBM has long been a pioneer in leveraging technology for innovation, and its Inclusive Design initiative is a testament to its human-centered approach. Realizing that true innovation must cater to diverse needs, IBM focused on accessibility in their product design and development.

By embedding inclusive practices, IBM worked with both their employees and customers, including individuals with disabilities, to co-create products that are accessible to everyone. This initiative not only improved product accessibility but also drove innovation culture within IBM, setting them apart as a leader in both tech and social responsibility.

If you are interested in how organizations can build innovation capabilities that embrace inclusivity, check out my piece on Building an Innovation Ecosystem: Lessons from Silicon Valley.

The Core Principles of Human-Centered Innovation

Human-centered innovation involves empathizing with and understanding the end-users. Here are core principles to guide innovation teams:

  • Empathy: Truly understanding and empathizing with users’ needs and challenges.
  • Collaboration: Engaging diverse perspectives in the ideation process.
  • Iteration: Prioritizing rapid prototyping and learning from feedback.

By embedding these principles, organizations can ensure their innovations serve the targeted needs of their users while contributing positively to society.

Conclusion

Innovation is not just about generating new ideas but about serving people and improving lives. By adopting a human-centered approach, organizations can develop innovations that are not only effective and efficient but also meaningful and impactful. Join us on this journey towards purposeful innovation—transform aspirations into reality, and make a difference that matters.

Extra Extra: Because innovation is all about change, Braden Kelley’s human-centered change methodology and tools are the best way to plan and execute the changes necessary to support your innovation and transformation efforts — all while literally getting everyone all on the same page for change. Find out more about the methodology and tools, including the book Charting Change by following the link. Be sure and download the TEN FREE TOOLS while you’re here.

Image credit: Unsplash

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