The Green Temptation

Good Evening,

I remember several years ago, the office staff of our consumer goods manufacturing company was asked for ideas to act more responsibly towards the environment and climate change. Ideas poured in, ranging from the replacement of plastic bottles and paper cups with reusable utensils, to greening the company stationery design, to switching to energy-efficient lighting.

These were all good ideas to which the team members had a sensorial connection when implemented, and therefore they gave us a sense of ownership, accomplishment, and storytelling.

On the other hand, while these initiatives contributed qualitatively to our organization’s green efforts, they did not contribute much in terms of significance or materiality towards our organization’s impact. This I learned a few years later when I reached a higher level of understanding of corporate sustainability through the concept of life cycle assessment - the journey of a product from the raw materials it is made from until the end of its useful life and disposal and its place in determining what matters most towards corporate sustainability actions. In our laundry care business, for example, I learned, much to my surprise that the highest GHG emissions contribution in our product’s lifecycle was caused by the consumers during their use of washing machines. The second level of learning I gained at this stage was that brand manufacturers were responsible for the emissions and impact on the environment caused by their consumers, posing a challenge in terms of the control we had over such activity.

Fast forward a decade, I now coach and advise tens of companies on corporate sustainability. The issue of materiality, value chains, and the measurement of climate action remains the most difficult point on the agenda in every discussion. Where are the highest points of impact in a business value chain, how to measure these impacts, and how to reduce these impacts such that the reduction is in line with the quantum of the problem caused by the business that is where the rubber hits the road. It is a long and arduous journey for any organization, and the challenges range from capability, to data access, to high costs. At the same time, science and technology are making rapid progress towards understanding, measuring, and providing solutions to climate change, such that these knowledge and technology tools are becoming more accessible and affordable.

As much as it is difficult to take the correct path towards climate action, it is equally important for organizations to avoid taking an irrelevant or fluffy path. The green temptation stems from its stakeholder appeal and the reputation-fortification potential, and it translates into emphasis on visible, demonstrable, and trending activities and their related communication thrust. Where there exists appropriate regulation and governance, such activities are likely to be caught out, leading to reputational damage and financial losses. Regulations notwithstanding, non-material climate activities are inefficient, distracting, and wasteful for the organization.

Executives can take the first steps by educating themselves on the scientific evidence available and by building their organization’s capability to take strategically correct decisions towards climate action. Hence, avoid the green temptation.

📊 🌍 Climate Myth vs. Fact

Myth: “The Earth’s climate is always changing naturally, so current warming isn’t a concern.”​Center for Rural Health

Fact: While the Earth's climate has indeed changed over geological time scales, the current rate of warming is unprecedented and primarily driven by human activities. Since the Industrial Revolution, the burning of fossil fuels has significantly increased the concentration of greenhouse gases in the atmosphere, leading to rapid global temperature rise. This accelerated warming poses serious risks to ecosystems, weather patterns, and human societies.

💬 Comment Corner

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