Business Leaders Have The World In Their Hands

February 7th, 2025 Article by Dr. James Ring for Fáilte Solar

Back in the 90s when I was studying environmental science, the big messages of concern still focused around the hole in the ozone layer caused by CFCs. Sustainability and climate action were not really spoken about to any major degree outside of the lecture theatre. It felt like us Environmental Scientists knew about this ticking timebomb, but the rest of the world walked around and ignored us or even derided us as tree huggers. But things have changed. The Environmental Scientists time has come. Everyone is trying to get up on our bandwagon......the more the merrier as far as I'm concerned.

As we navigate the challenges of the 21st century one thing will become increasingly clear, our future depends on our ability to quickly transition towards a sustainable and environmentally responsible economy.

In my career I have worked with companies from all manner of industry, building growth strategies to maximise shareholder value, give real employment and growth opportunities to their people and generally try to be a good corporate citizen. In the last three or four years there has been a subtle paradigm shift in their narrative. Sustainability is genuinely becoming as important as profitability. The penny has finally dropped.

The most common question I am asked is, where do I even start?

Well, you start at the start, recognizing that you are probably already doing a lot of small but good things, eg, paperless offices, energy saving appliances, allowing hybrid working and minimising commuting, these all matter.

After that look at the gaps, identify the big things that will take a transitional plan over time. Identify and start picking low hanging fruit, the quick wins that allow you to create the momentum for change. These quick wins could be bringing in free public transport for all staff, putting solar panels on the roofs of your premise, begin to change your fleet to electric vehicles as you change them. Business leaders will see I am effectively describing how to build a strategy and that in essence is what this is all about. Writing your standard business growth strategy but overlaying it with sustainability considerations, effectively ending up with business growth goals and sustainability goals, with the trick being that they both go hand in hand and compliment each other.

There are huge benefits to this when looked through the lens of the ESG (Environmental, Social, Governance) benefits to a company.

Environmental

The biggest benefit of embracing the green economy lies in its capacity to safeguard our planets delicate and already damaged ecosystems. As companies adopt sustainable and cost saving practices such as reducing carbon emissions, conserving resources and minimising waste they actively contribute to mitigating climate change and preserving biodiversity. By being aware of their environmental impact and taking proactive steps to minimise it, todays businesses play a crucial stewardship role in protecting the planet for future generations to thrive.

Social

In today's interconnected world, consumers increasingly gravitate towards environmentally responsible companies, price is becoming less and less of a pull, believe it or not. By embracing the green economy businesses can enhance their reputation and brand value. Consumers are more likely to support and remain loyal to companies that prioritise sustainability and demonstrate a genuine commitment to the environment. This positive image translates into increased customer trust, brand loyalty and distinct competitive advantage in the marketplace.

With Ireland gone beyond full employment, the ability to attract and retain talent is at a whole new level that I have never seen before.

Much of this is fueled by what I believe is recklessness by employers, flying in the face of sustainability. They are paying over inflated salaries to employees, gambling on future growth that in this currently very ambiguous economy, may not be realised. I think we will see a lot of casualties.

That being said, there is always a need to attract great talent. Employees seek meaningful work that aligns with their values and purpose, particularly the younger entrants into the workforce who are growing up in the most environmentally woke generation ever. This matters to them. I have seen energy companies who continued to bet on oil and gas wonder why staff were leaving for competitors. Alternatively, in a client of mine, a Dublin based solar power company, I have seen how an inspiring vision to power the world sustainably is genuinely motivating and galvanising a relatively young workforce to play their part.

Governance and business growth

Contrary to popular belief transitioning to a green economy is not just an ethical endeavor it is also a smart business move. Sustainable practices often lead to substantial cost savings in the long run by optimizing energy and resource usage. Thinking deeply about energy use minimsation and waste reduction strategies can result in significant financial benefits, particularly around waste, as one persons waste is another’s raw material.

Embracing the green economy stimulates innovation and opens up new avenues for growth. This pursuit of innovation often results in breakthrough technologies, improved processes and alternative eco friendly products. Furthermore as the demand for sustainable solutions increases new markets emerge presenting companies with lucrative opportunities for expansion and diversification. Like all innovative companies, this time, by proactively addressing environmental concerns, businesses can position themselves as pioneers in these emerging markets giving them a competitive edge. Think about this through the lens of Blue Ocean, Red Ocean strategy.

Governments worldwide are finally recognising the need for a sustainable future and are implementing policies and economic incentives and regulations to encourage companies to embrace the green economy by proactively adopting sustainable practices. As we get closer to carbon reduction target deadlines, we will see these incentives rise as Governments scramble to achieve them. It is a real no brainer to align yourself to these incentives, it is basically free money, and money that you will give you a competitive advantage if you move quickly or will at least help keep you in the chasing pack.

The green economy finally represents a global paradigm shift, urging companies to transcend traditional business models and embrace sustainable practices.

There is a lesser known song by the Dubliners called “what will tell the children”, released in 1992. In it, the legendary Ronnie Drew speaks of a dystopian world, created by the greed of modern man in the pursuit of money and power.

We are the generation that hold the world in its hands. We can create a sustainable and fair eutopia, or allow greedy powerful people to hoard wealth in a dystopian cesspit. I wonder what story we will tell the children.

Link to the original article: https://www.dhirubhai.net/pulse/business-leaders-have-world-hands-james-ring/?trackingId=su3bu2q5RO6ZLfKNzQhg%2Bw%3D%3D