What path should the sustainable company of the future take
We all want our companies to function, to have lasting growth, to be sustainable companies, that are competitive, etc. And, ultimately, that we can go to sleep with the peace of mind that everything is going well.
Understanding how the visible heads of the large companies that this world conquers every year think is not bad and more, if we want to grow consistently in a rather hostile market.
A report from the Norwegian consultancy Xynteo has recently been published where it asks a question to the great European executives … What can European companies do to help build an inclusive, sustainable, regenerative and competitive growth model?.
The report presents a summary of interviews with 27 Executive Officers (CEOs). Companies of the caliber of AXA, Danone, EDF Energy, the IKEA Group, Mastercard, Nestlé, Nokia, Schneider Electric, Tesco, etc.
You have to think that the companies participating in this report - together - represent a market capitalization of more than 2 trillion euros, so it is assumed that we are dealing with very competent professionals.
Although the report gives different data of interest, it has been found that there are five "jobs to be done" to build future sustainability in every company.
1.- Go further from shareholder benefits
Wanted "an economy that serves all«. European business leaders foresee an evolution in the way companies create value, returning solid and reliable dividends to shareholders, but also benefiting - at the same time - society as a whole… «True value must be quantified that companies provide to society ”.
Of those surveyed, 17% said their businesses had linked salary and environmental targets. 70% agree that employees in their company increasingly value purpose and self-fulfillment in their work, above other factors such as financial compensation.
The true value that companies provide to society must be quantified
- Problem Statement. An almost exclusive priority of maximizing return for shareholders is preventing companies from driving inclusive and regenerative growth.
- View. An evolution in the way companies create value, returning solid and reliable dividends to shareholders and benefiting society at large.
- Business actions:
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- Expand the proof that shareholder and societal value can go hand in hand.
- Connect with the right investors
- Mobilize the board of directors
- Reprogram your own company
2. Guide the consumer towards more sustainable options
Companies must apply the power of knowledge about behavior to push consumers towards more sustainable choices, while radically raising the overall sustainability performance of products and services offered to the consumer, changing the consumption model itself, if required.
«Almost 90 percent of people are willing to change their behavior to fight climate change, but only 3 percent know how to do it, so there is a gap that we must solve.«. - Jesper Brodin, CEO of the Ingka Group - IKEA Retail.
- Problem Statement. Our current consumer model is wasteful and degenerative by design.
- View. A circular economy, based on smart prosperity and the value chain, where functional benefits are decoupled from ownership.
- Business actions:
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- Advance with intelligence
- Eliminate bad options from the table
- Redesign business models for smart and sustainable prosperity
3. Shape the jobs of the future
The current approach to work is becoming obsolete… Are we ready to tackle the challenges of Artificial Intelligence or automation at work?
The companies need to build a new employment model, in which we have enough decent work for humans while reaping the benefits brought by new technological advances; automation, Artificial Intelligence (AI), Big Data, etc.
84% of those surveyed agreed that companies, rather than governments, will have to take the lead in requalifying workers to respond to the demands of new jobs.
The demand for higher cognitive skills, such as creativity, critical thinking, decision-making and complex information processing, will grow by 14% in Europe.
The human factor will continue to be crucial, especially when it comes to strategy, design, customer engagement and future talent development.
As part of the report and answer to the survey question… How many days of training does your company provide to each employee per year?
- Problem Statement. Digitization and new technologies are advancing at such a rapid rate that current jobs are becoming obsolete.
- View. A dynamic workforce that offers high productivity, sufficient income security and high worker training. The balance between technology and decent work is sought where technology will create other capacities and needs that require human interaction.
- Business actions:
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- 1. That humans be human
- 2. Learn and learn - continuously
- 3. Invest in a shared workforce
- 4. Share responsibility for income security with workers.
- 5. Since tomorrow's workers are likely to change jobs multiple times, it is important that company cultures de-stigmatize and normalize changes.
The future of work with a increased automation and use of AI will have the potential to offer «better living standards, better working conditions, greater economic security, better health and longevity"According to the latest MIT report on the subject. But we won't get there by default.
A machine-centric dystopian future with high levels of unemployment can be avoided, but only if we align ourselves with the future we want and then identify the actions necessary to make it happen.
4.- Free but safe data
Data is becoming the currency of today's economy. Used sensibly, it has the power to revolutionize our ability to solve a number of problems, but we are not being consistent and judicious enough as consumers do not trust the companies that are using their data.
The companies need to reverse the trend in distrust of open data and improve security of these with the aim of being able to take advantage of them for a model of constant, coherent and social growth.
97% of respondents agree that earning the public's trust and respect is important to their business. 3% do not agree.
Another 79% of those surveyed agree that European companies must take on a more important role than today in building an open and collaborative global community.
- Problem Statement. Distrust in the digital economy could prevent us from using data to drive both business and social value.
- View. A human-centered data economy is envisioned that will drive better business and welfare.
- Business actions:
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- Take advantage of the Data Protection Regulation - RGPD
- Demonstrate the huge social benefits of data
- Unlocking the full value and potential of data
5.- More collaboration between government and companies
Businesses need to change their minds to establish symbiotic Government-Business partnerships that leverage their complementary assets. Collaboration is essential for Europe to face the rest of the world as a united and innovative power… It is the only way forward!
Businesses have a responsibility to step up and help governments design and deliver solutions through sustained dialogue
58% of respondents agreed that European policies should focus on supporting open trade with countries outside the EU, rather than on trade from within. 30% do not agree.
Another 75% of those surveyed agreed that promoting European environmental and social standards around the world would help make Europe more competitive.
- Problem Statement. We need government-business partnership more than ever, but mistrust is undermining effective collaboration
- View. It is necessary to revitalize the Government - Company alliance, based on the mutual recognition of the respective value and the competence of collaboration.
- Business actions.
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- Create a new narrative based on mutual appreciation
- Learn and practice collaborative competition
- Work to achieve the highest common denominator
We remember that recently in our blog we launched an article about the 10 Startups that are revolutionizing the construction sector, which is quite interesting to understand the business trends in the sector.
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