Do Not Despair: The More Things Change, the Stronger the Case for Sustainable Business Becomes

By Michael Kobori (he/him)

Thirty years ago, in 1995, I began my career in corporate responsibility by implementing labor standards in apparel factories around the world for Levi Strauss & Co. At that time my biggest allies within the company were the communications and legal teams. Protecting brand reputation was important in responding to activist campaigns and threatened legal actions.

Today, seeing the epochal changes occurring in the role of corporations in society, I am experiencing, to quote the immortal Yogi Berra, “Deja vu all over again.”

Protecting brand reputation is important in responding to activist campaigns and threatened legal actions. However, in contrast to 30 years ago, activism and legal action does not come from forces demanding companies act to address their social and environmental impacts. Rather, it is the exact opposite.

What remains constant is the raison d’etre for any global company in protecting brand reputation: customers and employees. There has been a generational shift in both over the years. Today, external and internal research documents measurably greater support among millennials and Gen Z for brands that have a positive impact on society and the environment. This holds true across all markets and states, whether they are red or blue.

The other significant development has been a sharpening of the sustainability business case: that constant refrain of sustainability professionals everywhere.

Over the last ten years, first at Levi’s and then at Starbucks, the finance team became my biggest ally on sustainability. This came from several quarters: the recognition of climate as a fundamental business risk to be captured in 10K filings; the opportunity for sustainability related investments to provide competitive rates of return; the regulatory demand for environmental and human rights disclosures; and the importance of resilience as we transition to a low carbon economy.

The current administration and forces pushing against a greater societal role for corporations may temporarily curtail momentum in these areas, but they cannot stem the tide of these broader historic trends.

As I discussed with the CFO of NASDAQ at our recent Climate Week presentation, sustainability teams are deeply engaged with all finance functions: Audit, Controller, Corporate Development, FP&A, Investor Relations, Risk Management, and Treasury.

The integration of sustainability and finance brings relevance and context?to companies’ sustainability and social impact efforts. As sustainability leaders, it grounds us in the current boardroom and management team discussions of risk management, pragmatism, and business value.

Importantly, it does not seek to diminish our efforts or drive us to compromise with the forces of denial. Rather, it provides an important and growing set of hard economic reasons to continue to pursue a role for the corporation in society. This will ensure long-term benefit for our companies by supporting a more just and sustainable future for all, including our customers, employees, and investors.

History tells us that the alternative, which seems to be on the ascendency, is not a viable future for business.

Michael Kobori is an independent Board Director at Bunge Global SA. He recently retired as Chief Sustainability Officer of Starbucks and previously led sustainability at Levi Strauss & Co. His work has focused on building a more just and sustainable world through industry collaboration, human rights and economic development, and catalyzing sustainable change.