1.5 Motivations for Pursuing Sustainability

To make a sticky case for sustainability as a strategic priority, you need to speak to the motivations driving decision makers positions on sustainability. To help you begin to think about motivations, consider your own motivations.

• Why do you want—or not want—to pursue a sustainable lifestyle?

• Where do you fall on the not committed/committed spectrum?

Keep these questions in mind as we take a closer look at the societal and corporate motivations driving today’s sustainability discussion.

Society’s Side of the Story

In 2015, the United Nations (UN) established an agenda for sustainable development. The UN’s Global Goals were a call to action. Specifically, the UN invited societies worldwide to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity. No one could reasonably argue against these high-level goals. They are ambitious and admirable. Table 1.1 lists the UN’s specific goals.

Almost a decade later, intense debate rages about the UN’s calls for climate action. Three competing storylines have emerged (see Figure 1.7). Let’s review the arguments. After all, understanding others’ perspectives, even if you don’t agree, is critical to your ability to drive change. You may even learn something as you consider other points of view.

Go Slow, Let the Market Show the Way

Sustainability skeptics worry the exaggerated language of climate activists encourages ill-considered policies that may be more costly and disruptive than climate change itself. They argue that the costs and benefits of each alternative should be carefully evaluated and note that if current initiatives were ready for prime time, they wouldn’t need to be heavily subsidized. Here are a few of their talking points.

• Economic Pain. No modern economy can operate on the intermittent energy produced by solar and wind power. We’re not ready to make the transition.

• Not Just a Rich-World Issue. Mitigating climate change will require everyone’s efforts. Yet, China, the world’s largest emitter, plans to build coal-fired power plants until 2030. China’s goal to achieve carbon neutrality is 2060, 10 years behind the E.U. and U.S.

• Enduring Poverty. Moving quickly to renewables condemns the developing world to enduring poverty.

• The Nuclear Option. Modern, modular nuclear plants are reliable and emit no GHGs. Climate activists show their unseriousness by promoting less-reliable renewables over nuclear.

Ultimately, sustainability skeptics argue that proposed solutions to climate change—e.g., investing in windmills and solar panels—are unlikely to succeed. They argue that the market should lead the way, not government bureaucrats. The most extreme skeptics claim the “alarmist” push to carbon neutrality is a power grab.

Why should you care what the skeptics say? Answer: Skeptics have a potent political voice. To get where you want to go, you need to know where they are coming from.

Act Now, Cost Doesn’t Matter

Climate activists worry that climate change is an existential threat, and that ambitious action is needed now to prevent catastrophic outcomes. They argue that consensus is on their side; that is, that 97% of scientists agree climate change is real, a threat to our future, and caused by human activity. They view fossil fuels as the villain and call for a “massive and rapid shift in the world’s energy supply.”

The climate activists’ story is not new. In fact, you may remember that in 2015, leaders from 174 nations signed the Paris Agreement. The goal: Avoid the worst outcomes of climate change by limiting the rise in global temperature to 1.5°C above pre-industrial levels. Their prescription: Cut carbon emissions in half by 2030, moving to net zero by 2050.

Almost 10 years later, activists argue that progress has been too slow to achieve the 1.5°C goal. In fact, global GHG emissions hit record levels in 2022, and are going up. To speed the transition, activists say two things must happen.

1. Increase Subsidies. During 2023’s World Economic Forum (WEF), John Kerry, the U.S. Special Presidential Envoy for Climate, explained, “The lesson I’ve learned in the last years … is: money, money, money, money, money, money, money.” The U.S. Inflation Reduction Act dedicated $400 billion–$800 billion to climate solutions, offering a down payment on the transition to a green economy. Activists say much more money is needed.

2. Increase Regulation. Climate activists argue that companies’ short-term focus on profits pushes sustainability action down the road. Sadly, ESG investing hasn’t changed priorities. Their point: When markets fail, governments must intervene. On this point, the UN Compact’s Sue Allchurch is optimistic, saying, “The regulation is coming.”

Why should you care what climate activists say? Answer: Post COVID, they are driving EU and US economic and social policy. Now that momentum is on their side, they need to produce results—or risk a populist backlash.

Get It Right to Avoid a Backlash

Historic optimists worry the bickering between skeptics and activists may stall progress toward a sustainable future. They argue, based on history, that the solution to today’s climate crisis is innovation. That is, innovation will stave off the catastrophic effects of climate change just as it prevented the 20th century’s population bomb from starving the masses. Optimists point to a variety of potential game-changing technologies.

• Carbon Capture. Since 1997’s Kyoto Protocol committed industrialized economies to reduce their carbon footprint, countries have struggled to reduce emissions. One result: More people are trying to take carbon out of the air. In 2023, 1PointFive flipped the switch on Notrees, the planet’s first commercial-scale direct-air capture (DAC) plant. As carbon capture evolves, it may become an economical way to keep the world cool.

• Energy from Space. Cloudy skies and dark nights are the biggest threat to a solar-energy future. Yet, above the earth’s atmosphere the sun always shines. Scientists at Caltech are building prototypes to harvest the sun’s power in space and transmit it safely to earth. What used to be science fiction may soon be a solution to the world’s energy needs.

• Geothermal. The U.S. leads the world in geothermal energy, but obtains less than 1% of its energy needs from the earth’s heat. Better drilling capabilities are making “enhanced geothermal systems (EGS) viable.” What does this mean? EGS could provide 8.5% of America’s electricity generation by 2050.

• Hydrogen. Hydrogen, the most abundant element in the universe, is emerging as a key element in decarbonization efforts. With 1,000 hydrogen projects now under way, experts expect “clean” hydrogen to be cost competitive by 2030. Hydrogen may be the fuel of the future, powering heavy manufacturing and challenging EVs for supremacy on the road.

• Seaweed. Seaweed, a relatively new source of nutrition, may offer an unexpected boost in our climate-change fight. How, you ask? Cows fed seaweed emit 80% less methane, a particularly noxious GHG. Seaweed may also be ideal to sequester carbon.

Critically, optimists aren’t relying on a technological silver bullet to solve today’s climate challenges. But they are confident that developing a portfolio of new technologies will enable both the world’s economy and environment to thrive.

Why should you care what optimists say? Their pragmatic approach offers a hopeful, positive message. It seeks to avoid the possible backlash that could occur if we abandon fossil fuels too quickly, causing economic chaos and pain.

Before turning to the corporate side of the story, take a minute to ask, “What can I learn from each view?” Listening to and learning from each other may be the best way to tackle the 21st century’s toughest issues

The Corporate Side of the Story

At the corporate level, the sustainability story begins with the word authenticity, which means “acting in congruence with personal, intrinsic values.” Authenticity underlies motivation. It also influences stakeholders’ responses. Low authenticity leads to lightweight motivations, which may prove too weak to …

1. Establish sustainability as a top strategic priority.

2. Sustain required resource allocation.

3. Produce a marketable sustainability capability.

Figure 1.8 identifies four corporate motivations for sustainability: Image Enhancer, Efficiency Maximizer, Resource Acquirer, and True Believer. Note that companies often have multiple motivations—i.e., an image enhancer can also be an efficiency maximizer.

The Image Enhancer

Sustainability enjoys a halo effect. Companies often pursue sustainability to attract new customers or rehabilitate a tarnished image earned through other business practices (e.g., low wages, worker exploitation, poor quality). Simply put, sustainability provides an alternative talking point. Image is, however, an extrinsic motivator. External stakeholders may doubt the Image Enhancer’s story, labeling their sustainability initiatives as “greenwashing.”

Lee Scott grasped the power of sustainability to enhance Walmart’s image. In the early 2000s, the trade press portrayed Walmart as an oppressive employer and the foe of small business. Then, Hurricane Katrina stuck, devastating New Orleans. Over the following months, Walmart provided vital and visible assistance, alleviating suffering at costs no one could match. The press showered Walmart with “gratitude, kindness and acknowledgements.” Scott soon announced Walmart’s push to become a sustainability leader.

Early public reaction was mixed. Chris Kofinis, communications director at Wakeup Walmart, noted, “We don’t know whether Walmart’s environmental changes are real or a Machiavellian attempt to green-wash a declining public image.” By contrast, Fred Krupp, president of Environmental Defense, highlighted the possibilities, saying, “Walmart has as much or more potential than any other company to change the way the world does business.” Krupp underscored a harsh reality: Walmart will be judged by “the results of its efforts.”

Walmart delivered strong results on the two goals that align with its efficiency prowess—to be supplied by 100% renewable energy and to create zero waste. Selling sustainable products proved more difficult. In this area, suppliers controlled Walmart’s destiny. Walmart quickly learned that 90% of its sustainability impact was embedded in the upstream supply chain.

The Efficiency Maximizer

Efforts to maximize efficiency typically reduce waste, leading to a smaller carbon footprint—key sustainability goals. Lean operations contribute to a company’s sustainability quest. To the extent that operational savings offset sustainability’s costs, sustainability is free.

DuPont is a model efficiency maximizer. In the late 1980s, the Toxics Release Inventory placed DuPont at the top of the list of global toxins emitters. At the time, DuPont spent over $1 billion a year on waste treatment and pollution control. To remain viable in a global chemical industry, DuPont needed to shrink these costs. DuPont engineers went to work, redesigning processes to improve efficiency—and reduce emissions. By minimizing materials consumption, eliminating rejects, and reducing energy use in the nylon production process, DuPont reduced toxic emissions 70% by 2002—at virtually no extra cost.

Despite its award-winning emissions reductions, DuPont’s massive scale means it still appears on negative rankings of major world polluters. What does this imply? Efficiency Maximizers may save money, but they may not receive accolades for being “green.” The result: As sustainability is tangential to efficiency, sustainability goals seldom evoke culture-changing passion throughout the organization. When the low-hanging fruit has been harvested and sustainability programs no longer provide a positive ROI, Efficiency Maximizers refocus on other projects.

The Resource Acquirer

By definition, sustainability focuses on managing resources to “sustain” operations into an unknowable future. Resource Acquirers take future scarcity seriously, pursuing renewable resources to assure their own survival.

Starbucks, a purveyor of high-quality coffee at a premium price, is a Resource Acquirer. Masses of loyal consumers—Starbucks operates over 35,000 stores in 80 countries—are willing to sacrifice a little discretionary income and other pleasures for the taste, experience, and image associated with the Starbucks brand. Sustaining growth means that Starbucks must assure long-term supply of potentially scarce coffee beans. In fact, Starbucks buys more than 800 million pounds of “green” coffee beans each year. That’s five percent of the world’s supply.

Decision makers at Starbucks know that coffee is a threatened crop. Some studies have predicted that climate change could cause the demise of Coffea arabica—the special variety that accounts for 70% of the coffee consumed worldwide—by 2080. To assure supply, Starbucks established a Farmer Support Center in Costa Rica and cultivated collaborative relationships with key growers. Remarkably, by making Fairtrade coffee desirable, Starbucks made it fashionable to pay more for a raw material. By 2015, Starbucks sourced 99% of its coffee “responsibly.”

The True Believer

For a few select companies, sustainability is part of the organizational DNA. True Believers are motivated by who they are. Their goal: Proactively make the world better. They are authentic—a reality rewarded by committed employees and loyal customers.

Patagonia was born as a True Believer. Founder Yvon Chouinard established Patagonia to sell the highest-quality items produced in the most responsible way possible. Patagonia’s mission:

Like many True Believers, both Chouinard and Patagonia are sustainability evangelists.

For example, Patagonia established an Environmental Internship program in 1993 that pays employees to take a leave of absence to work for an environmental non-profit for two months. Patagonia lives by what it calls the 5 Rs:

• Reduce. Make high-quality, long-lasting products that do not need to be replaced.

• Repair. Teach customers how to repair their products instead of replacing them.

• Reuse. Buy back used clothes in good condition, renew them, and resell them.

• Recycle. Make it easy to take back and recycle old items.

• Reimagine. Promote the vision: “a world where we only take what nature can replace.”

Patagonia openly accepts the growth limitations that come with its chosen strategy and culture. Leaders realize that encouraging consumers to buy less runs counter to consumerism and the profit-motive of Wall Street. Patagonia is content with its leadership position.

Why should you care about a company’s motivation for pursuing sustainability? As a consumer, when you buy things, you are making a choice. Companies increasingly hope that you, and your peers, will opt to support socially responsible companies. Likewise, as an employee, you want to work for a company that shares your values. More companies now count on millennials and Gen Z to want to work for sustainability leaders. Attracting and retaining consumers and employees is part of the sustainability story. This is where the ROI is!