Washington
THE IMPORTANCE OF SUSTAINABILITY TO THE FUTURE OF GLOBAL BUSINESS
Renowned futurist Dr. James Canton discusses the importance of sustainability to the future of global business.
Many goals of today’s corporate eco-strategies are aimed at achievements for 2020 and beyond. The next decade will undoubtedly set the stage for the leaders of the next business era.
Dr. James Canton agrees. As Chairman and CEO of the Institute for Global Futures and a member of the Advisory Board of the Corporate Eco Forum, Dr. Canton’s extensive experience advising the world’s leading corporations and governments involves his belief that sustainability will be the key transformation strategy for business success in the future.
Dr. Canton spoke to The Eco Innovator about why eco-strategy will disrupt business in the same way that the Internet did, why it doesn’t matter if you believe in global warming, and why 2020 will be “game over” for companies still on the sustainability sidelines.
The Eco-Innovator: Many Global 500 companies are launching eco-strategies today that have goals for 2020 and beyond. What factors should they be considering?
James Canton: First, the idea of an “eco-strategy” implies a concise standard of excellence. It sounds like we have a consensus, which has not been established yet. We are still very early in the game – the definition of an “eco-strategy” is still a moving target. Also, what may count as an eco-strategy for one company or one industry may be different from what counts in another.
Developing an eco-strategy is more art than science today. The definition of eco-strategy is still an evolving paradigm that needs to be evaluated and tested in the marketplace. Let’s not assume that there are strategies out there that have buy-in and consensus.
What I’ve found as I consult with governments and institutions is that it is very difficult for people to picture the right strategies for the future. It is still an evolving conversation.
Let’s make an analogy to the Internet. In the 1990s, the early adopters were considered radical. Most companies did not believe that the Internet represented a fundamental shift that would transform business and organizations – that didn’t happen until after 2000.
A similar phenomenon is happening with eco-strategy adoption. Many companies still think it is about reputation. They’re using their eco-strategy to prove to the marketplace that they’re on top of the right trends.
By 2020, we’ll have global agreement. We’ll have organizational leaders that have demonstrated the courage to deploy real eco-strategies.
Because by 2020, if we’ve not achieved a measured, significant reduction in emissions, sequestered carbon, developed carbon-trading exchanges, cut back on climate change so that we’re able to manage the risks associated with health and mobility, it will be a tragedy.
But as of today, we still don’t have a critical mass of change. There’s not so much happening that I can say, as a futurist, we will achieve these goals. At this point, by 2020, we’ll need to have developed more ideals and goals to make a sustainable future come to life.
By 2020, the global business community will have put the stake in the ground and created the goals that will transform their organizations – and it will be the corporations, not the governments – which will make the planet more livable for our children and grandchildren.
The Eco-I: What will separate the successful eco-strategies from the others?
JC: In every part of the organization, innovation around eco-strategy will need to be baked in. That’s where the real change will occur. Currently we’ve got companies with a green strategy for this service, or with investment in green initiatives, but overall, they’re still risk-averse.
That won’t be the case in 2020. Consumers will be brutally evaluating which companies are really green. Eco-strategy will be a systematic approach to the business.
Going back to the Internet example, the eco-movement is similarly a very disruptive business change. Green will be a natural evolution by 2020. The companies that get it right will be rewarded – by the marketplace, investors, consumers – and those that don’t will suffer. I forecast that 25 percent of today’s companies will not change fast enough and will be disrupted by the eco-strategy movement in the same way that the Internet disrupted the corporate establishment.
In many companies, the boardroom has not yet woken up to this reality. When it does, that is when things will really shift. Interestingly, you now have cases where companies like GE, which are out in front of this green movement, have had to deal with investors who are not on board.
The good news is that this won’t be the case in five – or even three – years. In a short time, you will see entire company boards replaced. The new members will be listening to the marketplace, which says green matters. Where the environment is primarily an identity issue today, eco-strategy will become a fundamental change in the DNA of business – and by 2020 we’ll see that.
The Eco-I: For today’s companies that are just launching their sustainability initiatives, is there still time to make real change by 2020?
JC: Companies should be baking in sustainability to their strategies today. Yet many don’t have any kind of real eco-strategy. They are de-linking green initiatives from their overall corporate missions. These companies still need to make the strategic link to where the marketplace is going and execute on that strategy.
I worked with GE on their “Ecomagination” strategy. The program began a decade-plus ago when the company was dealing with a lot of pollution problems. After a lot of hard work, they ended up turning a corner. GE had to make sure that product strategies included eco-considerations that were authentic to the market and sustainable for the planet.
To use the Internet example, if the Internet didn’t transform your communications, supply chain, ecosystem, customer interactions, then your company is not around anymore. Any sizeable company has embraced the Internet. What was a disruptive force in the 1990s is now the standard of business.
The company that is not working on its eco-strategy is planning its own death and demise. It is really a matter of smelling the coffee and getting moving.
Every business is facing the same transition. Rather than fighting the change, it will pay to embrace a good eco-strategy – to see where the market is going and get there before the competition.
By 2020, it is “game over.” It is critical for companies to cast their eco-strategy bets now and make changes as they go along. By 2012, they’ll otherwise have missed the opportunity to achieve a competitive advantage by having a business strategy that has the right sustainability components to establish them as leaders. Companies that can execute on eco-innovations today will be way out in front.
The Eco-I: What will drive eco-strategy success in 2020?
JC: Eighty percent of corporations have yet to realize that eco-strategies will create a new competitive edge in business. There are products and services that have yet to be created, which will drive bottom-line value.
This is a tremendous opportunity. Here are customers saying they want to buy these types of products. From a mercantile point of view, it pays to serve them. I’m in business to make money. Buying into the idea of climate change – it doesn’t make any difference. But if you like to make money and want your company to survive, guess what? Eco-strategies make financial sense.
It is the pure economic argument that is getting traction today. Those companies that are out in front don’t care about the metrics of eco-strategies because they understand that fundamentally, customers want this. Our surveys show that 90 percent of Europeans and North Americans view themselves as environmentally aware. The question is, can companies create eco-strategies to transform their organizations, so that they can benefit from these sentiments and improve their bottom line? That’s the real challenge.
When I work with companies, we don’t discuss the health of the planet. I don’t play the social-morality card to get clients to pay attention. Basically, I say, “Your customer will buy more goods and pay more money for green offerings. If you want to leave money and market share on the table, so be it. But if you want to understand these trends and use them to develop an eco-strategy that will lead to a competitive advantage in the future, then let’s talk.”
Read more: http://goo.gl/wb5fs
Renowned futurist Dr. James Canton discusses the importance of sustainability to the future of global business.
Many goals of today’s corporate eco-strategies are aimed at achievements for 2020 and beyond. The next decade will undoubtedly set the stage for the leaders of the next business era.
Dr. James Canton agrees. As Chairman and CEO of the Institute for Global Futures and a member of the Advisory Board of the Corporate Eco Forum, Dr. Canton’s extensive experience advising the world’s leading corporations and governments involves his belief that sustainability will be the key transformation strategy for business success in the future.
Dr. Canton spoke to The Eco Innovator about why eco-strategy will disrupt business in the same way that the Internet did, why it doesn’t matter if you believe in global warming, and why 2020 will be “game over” for companies still on the sustainability sidelines.
The Eco-Innovator: Many Global 500 companies are launching eco-strategies today that have goals for 2020 and beyond. What factors should they be considering?
James Canton: First, the idea of an “eco-strategy” implies a concise standard of excellence. It sounds like we have a consensus, which has not been established yet. We are still very early in the game – the definition of an “eco-strategy” is still a moving target. Also, what may count as an eco-strategy for one company or one industry may be different from what counts in another.
Developing an eco-strategy is more art than science today. The definition of eco-strategy is still an evolving paradigm that needs to be evaluated and tested in the marketplace. Let’s not assume that there are strategies out there that have buy-in and consensus.
What I’ve found as I consult with governments and institutions is that it is very difficult for people to picture the right strategies for the future. It is still an evolving conversation.
Let’s make an analogy to the Internet. In the 1990s, the early adopters were considered radical. Most companies did not believe that the Internet represented a fundamental shift that would transform business and organizations – that didn’t happen until after 2000.
A similar phenomenon is happening with eco-strategy adoption. Many companies still think it is about reputation. They’re using their eco-strategy to prove to the marketplace that they’re on top of the right trends.
By 2020, we’ll have global agreement. We’ll have organizational leaders that have demonstrated the courage to deploy real eco-strategies.
Because by 2020, if we’ve not achieved a measured, significant reduction in emissions, sequestered carbon, developed carbon-trading exchanges, cut back on climate change so that we’re able to manage the risks associated with health and mobility, it will be a tragedy.
But as of today, we still don’t have a critical mass of change. There’s not so much happening that I can say, as a futurist, we will achieve these goals. At this point, by 2020, we’ll need to have developed more ideals and goals to make a sustainable future come to life.
By 2020, the global business community will have put the stake in the ground and created the goals that will transform their organizations – and it will be the corporations, not the governments – which will make the planet more livable for our children and grandchildren.
The Eco-I: What will separate the successful eco-strategies from the others?
JC: In every part of the organization, innovation around eco-strategy will need to be baked in. That’s where the real change will occur. Currently we’ve got companies with a green strategy for this service, or with investment in green initiatives, but overall, they’re still risk-averse.
That won’t be the case in 2020. Consumers will be brutally evaluating which companies are really green. Eco-strategy will be a systematic approach to the business.
Going back to the Internet example, the eco-movement is similarly a very disruptive business change. Green will be a natural evolution by 2020. The companies that get it right will be rewarded – by the marketplace, investors, consumers – and those that don’t will suffer. I forecast that 25 percent of today’s companies will not change fast enough and will be disrupted by the eco-strategy movement in the same way that the Internet disrupted the corporate establishment.
In many companies, the boardroom has not yet woken up to this reality. When it does, that is when things will really shift. Interestingly, you now have cases where companies like GE, which are out in front of this green movement, have had to deal with investors who are not on board.
The good news is that this won’t be the case in five – or even three – years. In a short time, you will see entire company boards replaced. The new members will be listening to the marketplace, which says green matters. Where the environment is primarily an identity issue today, eco-strategy will become a fundamental change in the DNA of business – and by 2020 we’ll see that.
The Eco-I: For today’s companies that are just launching their sustainability initiatives, is there still time to make real change by 2020?
JC: Companies should be baking in sustainability to their strategies today. Yet many don’t have any kind of real eco-strategy. They are de-linking green initiatives from their overall corporate missions. These companies still need to make the strategic link to where the marketplace is going and execute on that strategy.
I worked with GE on their “Ecomagination” strategy. The program began a decade-plus ago when the company was dealing with a lot of pollution problems. After a lot of hard work, they ended up turning a corner. GE had to make sure that product strategies included eco-considerations that were authentic to the market and sustainable for the planet.
To use the Internet example, if the Internet didn’t transform your communications, supply chain, ecosystem, customer interactions, then your company is not around anymore. Any sizeable company has embraced the Internet. What was a disruptive force in the 1990s is now the standard of business.
The company that is not working on its eco-strategy is planning its own death and demise. It is really a matter of smelling the coffee and getting moving.
Every business is facing the same transition. Rather than fighting the change, it will pay to embrace a good eco-strategy – to see where the market is going and get there before the competition.
By 2020, it is “game over.” It is critical for companies to cast their eco-strategy bets now and make changes as they go along. By 2012, they’ll otherwise have missed the opportunity to achieve a competitive advantage by having a business strategy that has the right sustainability components to establish them as leaders. Companies that can execute on eco-innovations today will be way out in front.
The Eco-I: What will drive eco-strategy success in 2020?
JC: Eighty percent of corporations have yet to realize that eco-strategies will create a new competitive edge in business. There are products and services that have yet to be created, which will drive bottom-line value.
This is a tremendous opportunity. Here are customers saying they want to buy these types of products. From a mercantile point of view, it pays to serve them. I’m in business to make money. Buying into the idea of climate change – it doesn’t make any difference. But if you like to make money and want your company to survive, guess what? Eco-strategies make financial sense.
It is the pure economic argument that is getting traction today. Those companies that are out in front don’t care about the metrics of eco-strategies because they understand that fundamentally, customers want this. Our surveys show that 90 percent of Europeans and North Americans view themselves as environmentally aware. The question is, can companies create eco-strategies to transform their organizations, so that they can benefit from these sentiments and improve their bottom line? That’s the real challenge.
When I work with companies, we don’t discuss the health of the planet. I don’t play the social-morality card to get clients to pay attention. Basically, I say, “Your customer will buy more goods and pay more money for green offerings. If you want to leave money and market share on the table, so be it. But if you want to understand these trends and use them to develop an eco-strategy that will lead to a competitive advantage in the future, then let’s talk.”
Read more: http://goo.gl/wb5fs
Global Source and/or and/or more resources and/or read more: http://goo.gl/HKcYU ─ Publisher and/or Author and/or Managing Editor:__Andres Agostini ─ @Futuretronium at Twitter! Futuretronium Book at http://goo.gl/JujXk ─ www.FUTURE-OBSERVATORY.blogspot.com
