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31/1/2023

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2023: awareness, courage and action?

At the start of this new year, I wanted to put down on paper a few thoughts from 2022 and proposals for 2023.

2023: awareness, courage and action?

What struck me in 2022 was the growing penetration of questions about the ecological transition and sustainable development. No matter how much insiders criticize the term, blaming it for all the ills of organizations' lack of ambition, greenwashing and runaway growth, even if it is green, I am well aware that it has not yet been taken on board by organizational leaders. In fact, the term ESG is emerging as an even less sexy terminological alternative, but if that gets things moving... In parallel, however, let's talk about post-growth, regenerative economics. It's more exciting and opens the door to real, committed transformations that follow the principles of life to create more life. You can see here the article written by a collective of friends who are experts in transition during our search for meaning in the midst of Covid.

2022 has seen a series of obvious contradictions: an ambitious plan in the United States (the Inflation reduction act) alongside anti ESG laws in several states; the 2 COPs of the year, bringing promising and ambitious commitments, even historic ones, notably on the loss and damage fund and biodiversity, but we note the emissions curve that is taking us further away from the targets in Canada, political changes linked to Covid and inflation that are diverting investments, and conflicts surrounding the war in Ukraine, which allow us to negotiate arrangements with our collective commitments.

Some investments in companies are still discarded because they are unable to demonstrate a short-term return, generally because they are calculated by excluding a number of revenues and costs. Indeed, these are either borne by others (our famous externalities, such as the cost of managing the end-of-life of products, negative health impacts, etc.), or are excluded from traditional calculation methods, such as environmental and social costs and benefits which nevertheless have a very significant ultimate financial impact. Just think of employee loyalty or increased attractiveness, which reduce the cost of recruitment.

We can see that innovation is still little inspired by the circular economy, although it is growing. Biomimicry is still largely unknown to managers. We're talking about 6G and infinite technologies, while critical metals will be in short supply in less than a generation.

Closer to home, I was struck by the figures shown in the Québec Net + study indicating that half of entrepreneurs are aware that their business does not add value to society. I've already read that over 70% of brands could disappear without negatively impacting our quality of life. If this isn't a sign of urgent questioning, with big underlying questions: what imprint do I want my company to leave on future generations? What is the fundamental purpose of my activities, the one that justifies my existence?

In 2022, even though awareness of the seriousness of the situation has increased and certain issues have gained in visibility, such as climate justice and the circular economy, the links with corporate activities are still difficult to make by entrepreneurs and managers, who doubt their ability to act. The notion of growth is entrenched and difficult to challenge. How many discussions have I had with managers about growth prospects, new markets, expansion... And yet growth is not synonymous with success, efficiency or financial health. Even less so for quality of life and mental health. So, infinite growth? Some entrepreneurs are already asking the question realistically.

Finally, understanding climate change is generally associated with constraints, cataclysmic visions and, ultimately, a perception of powerlessness and fatality.

Change will happen, with or in spite of us. Businesses will lose access to certain resources or capabilities over time (plastic packaging, certain foods or ingredients, working days due to heatwaves or extreme weather events, etc.). Some will find their lives easier, or their services more socially useful. It's a good idea to think ahead. I invite managers to see this challenge as an opportunity to rethink their business models, to innovate to provide concrete solutions to societal issues, to collaborate with other inspired people, and to give even more creativity and meaning to their activities. We see every day in our coaching that employees want this transition and are ready to devote themselves to it with enthusiasm.

There are more and more impact entrepreneurs, the knowledge and technology are perfectly accessible, and funding is on the way. Isn't pondering these questions the most exciting thing you can do with your teams?

The year 2023, the year of awareness and courage for action?

We welcome your thoughts.

2023: awareness, courage and action?
2023: awareness, courage and action?

Photo credit: sharon-pittaway-N7FtpkC_P7o-unsplash

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