How do we make businesses both profitable and sustainable?

Let’s face it—the idea behind sustainability makes perfect sense. Companies simply can’t succeed on a planet plagued by never-ending crises and overwhelming risks. And yet, despite countless corporate promises over the years, businesses keep harming the planet. Carbon emissions keep climbing, and fossil fuel companies are still chasing growth. So, what’s the problem? The current ESG approach isn’t cutting it, and it never will unless we rethink the entire system.

Some businesses are showing it’s possible to make real progress. They’re setting big net-zero targets, cutting carbon emissions, working together to make supply chains more fair, and being transparent about their progress. All good stuff, right? But here’s the catch—this gives off the impression that everything is going just fine, which takes the pressure off making deeper, much-needed changes.

The hard truth is this: ESG, as it stands today—based mostly on voluntary actions and fancy reports—, won’t bring about the change we need. What we need is a massive shift toward something called “competitive sustainability.” In simple terms, this means rethinking how businesses operate so sustainability becomes a competitive advantage rather than just a nice-to-have.

The real issue here isn’t that companies don’t care. They do. But ESG has mostly been treated as an add-on to traditional business models—a way to manage risks and boost reputations. What it doesn’t do is fix the deep-rooted conflict between making profits and being sustainable. As long as markets reward short-term profits over long-term resilience, businesses will continue to harm the planet, and markets will eventually collapse under their weight.

We don’t have time to wait for institutions and economic systems to slowly evolve. The global ecosystem is running out of time. Instead, we need to redesign market incentives—rewarding businesses that embrace sustainability and penalizing those that don’t. But here’s the catch: businesses can’t do this alone. They need to push governments to take action and, more importantly, shift their mindset. Sustainability shouldn’t be just a responsibility; it should be seen as a competitive edge.

The environmental challenges we face aren’t about morality or consumer trends—they’re about natural laws. Climate change and biodiversity loss are real, measurable threats that will destroy business as usual. Companies need to stop asking, “How much sustainability can we afford?” and start asking, “How do we thrive in this new, sustainable world?”

Some companies are already leading the way, like our little business in Grantham, which is working on being net zero by 2030. We are not just reacting to a green future—we are shaping it and setting ourselves up to win. But others, like those in the plastics industry, are still lagging, focusing on recycled content rather than pushing for the real solutions we need, like cutting material use and advocating for policies that boost recycling.

A change in mindset alone won’t cut it. We need to redesign markets so there’s no tension between making money and being sustainable. Governments need to step up, too, by making it financially smart to move away from harmful practices. If they don’t, businesses that voluntarily go green will be at a disadvantage compared to those that don’t.

Leading businesses are already speaking out, but their voices are too few. Progress keeps getting slowed down by lobbying from industries clinging to the past—just look at how the German car industry fights to keep the combustion engine or agriculture’s resistance to cutting chemicals and emissions.

In the end, ESG as we know it is on its way out. The next decade will be all about businesses competing not just for profits, but for the future itself. The future isn’t just about who can grab the biggest market share. It’s about who can help build a world where businesses thrive alongside a healthy planet. The companies that get this right will not only lead the way, but they’ll also be the ones that survive and thrive in the long run.

Let’s make sure we’re ready for that future.