What will be after Covid-19?

COVID-19 has impacted business at all levels around the world, and has developed pitfalls and inconsistencies in supply chains and other business practices. The coronavirus pandemic has damaged humanity but it has also been exposed to pre-existing wounds.

Companies with a strong focus on innovation and sustainability and circular practices have shown resilience to a global pandemic, along with many other companies now pivoting their models to replicate this success.

So what happens next? What should companies do once the crisis begins to subside to make a better world a reality?

As always, before making a transformational shift, we need to understand the reasons of WHY business need to change and transform to become more sustainable.

I wrote an article couple of weeks ago "6 Reasons Why Business Needs to Be Sustainable In The Wake of COVID-19". One of the reasons I mention is the fact that BlackRock Inc, The New York-based firm, which oversees about $6.5 trillion of assets, said that 88% of sustainable indexes did better than their non-sustainable counterparts in the first four months of 2020.

Deriving from BlackRock’s conviction that sustainability-integrated portfolios can deliver better risk-adjusted returns and more resilient portfolios, the BlackRock's commitment is to make sustainability its standard for investing. 

Sandy Boss, Global Head of BlackRock Investment Stewardship said;

“We believe that sustainable companies are better positioned to generate long-term investment returns for our investors. We’re committed to helping clients navigate society’s transition to a more sustainable economy and will use our votes to hold companies to account when they are moving too slowly or when their disclosures lack compelling targets and a sensible business strategy to manage ESG risk and opportunities.” 

Therefore, for companies to stay in business and become even more competitive – they will need to integrate sustainability into business strategy.

This is what I’ve been teaching and certifying professionals and companies over a decade.

Since I started my company VATI of Sweden in January 2019 - I’ve taught 100+ professionals and companies on how to integrate sustainability in business strategy through the online certification course, Business4SDGs. We are now a community of over 15,000 people who are committed to creating a better world by running businesses that promote sustainability, equality, and diversity.

It’s now clearer than ever that system change is needed and brands, investors and consumers are waking up to the facts.

So what will be after COVID-19?

I am convinced that the Sustainable Development Goals (SDGs) are the clearest globally-agreed articulation of social and environmental outcomes to achieve by 2030. As such, they can set a common frame for governments, business, academia and civil society, to develop sustainable guidelines.

True sustainability in business requires a profound transformation throughout entire industries and it will take more than brand pledges to achieve this. In order to adopt sustainable practices across global markets, transparency and verification will therefore be needed.

As an example I would like to share this short video where Anna Johansson, Sustainability Manager at Granuldisk, a Swedish innovation of pot washing machine, explains why their company needed to become even more sustainable – to meet their customers needs. (The video is in Swedish).

However, some may ask whether Covid-19 will negatively affect the sustainability work at companies?

If we are to look out there globally at the moment, there are also many worrying things – countries failing to meet their commitments on the environment and other international agreements, pulling out of commitments, questioning the fundamental principles upon which the science around some sustainable development issues is based, a lack of international consensus and so on. Given all of this, can we expect businesses to take the lead on sustainable development and SDG commitment when it could be argued there is a lack of courageous, concerted political leadership on these issues at a national or international level?

I believe we can!

Companies are the engine and the transformators in the world and are driving economic growth. No matter how big or small, and regardless of industry - all companies can contribute to the SDGs.

The key for transformation is to make business leaders aware of all the great business opportunities that lies within the 2030 Agenda and the SDGs.

According to a report "Better Business Better World" – there are $ 12 trillions of business opportunities within 4 segments per year until year 2030.

Energy US$ 4.3 trillions

Cities: US$ 3.7 trillions

Food & Agriculture US$ 2.3 trillions

Health & Wellbeing US $1.7 trillions

This is a topic I am explaining in the podcast The New Principles & Leadership.

With crisis and risks comes opportunities! Especially within sustainability!

This crisis is an opportunity to Future-Proof and change our business models towards sustainability and stimulate innovation to preserve our world for the coming generations. To integrate sustainability into business strategy, business processes and ensure stakeholder engagement.

This pandemic is a true wake up call for sustainability!

But sustainability is broad and complex. How do you integrate it into your business strategy? How do you know what level of ambition you should choose?

I would say it depends whether you are a large Enterprise, a medium enterprise or a small or even a start-up. In my next article I will write about how to solve it. How to integrate sustainability depending whether you are a large enterprise, medium sized or small. Or even a start-up.

Thoughts on this topic? Please leave your comment below.

Eva Vati is an Entrepreneur and Business Strategist who helps executives, businesses, and entrepreneurs future-proof their companies.

She is the CEO and founder of VATI of Sweden, which is one of the first companies in the world giving certification on integrating sustainability into business strategy. She has a loyal community of over 15,000 people who are committed to creating a better world by running businesses that promote sustainability, equality, and diversity.