- the outer context is increasingly volatile and untenable -
Our severe ecological overshoot will soon send our economic and financial systems crumbling, and with them the planet stability.
The systematic social undershoot that underpins profitability of the current economic model and most of our models may not be socially acceptable much longer.
“Is it possible to combine promises about endless economic growth and carbon net-zero pledges?
Reflecting on these experiences has made it clear that achieving true sustainability requires us to confront some uncomfortable truths, both within the industry and in society at large. The reality is that the global commitment to the Paris Agreement, which aims to limit the temperature increase to 1.5°C, is increasingly out of reach. The promises of achieving "net-zero" emissions by 2050, while maintaining an energy-intensive economy and pursuing continuous growth, are neither realistic nor honest. This disconnect between ambition and reality became starkly apparent when the Science Based Targets initiative removed around 500 corporations from their validation process and demanded that others revise their climate mitigation plans.
The message is clear: what was once marketed as achievable is now being exposed as overly optimistic and, in some cases, entirely unfeasible.
Looking ahead, it’s crucial to acknowledge that we are falling short of our ambitious goals. For instance, Sweden recently abandoned its near-term climate targets for 2030, and public data from major tech companies shows almost no progress in reducing emissions from production. In some cases, companies continue to pursue growth targets within a linear business model that leaves little room for supporting climate objectives.
This suggests that we may soon find ourselves grappling with new financial realities, such as de-growth scenarios and the impending implementation of carbon taxation. Moreover, the need to curb consumeristic behavior is becoming increasingly urgent. The challenges we face extend far beyond Europe, the U.S., and the Global North; ultimately, it is our way of life that lies at the heart of the crises we confront. We cannot continue to consume as we have in the past, and the consequences of this unsustainable lifestyle are rapidly catching up with us.
The current situation is dire. Climate data and projections are not aligning with the optimistic goals set out in international agreements. Reports like the one from PwC in 2023 highlight not only the impending scarcity of critical resources but also the potential for the total depletion of several key minerals within this century.
These challenges are not just environmental, they are geopolitical as well.
An impossible equation.
a unique perspective on the tech industry and the hyper-consumeristic society in which it operates.“
Stefan Nilsson Korp-Patron
The Global South bears the brunt of climate change, while the Global North's reliance on imports of critical materials underscores a troubling dependency that could lead to further exploitation and conflict over resources.
The industry’s efforts to address these issues, particularly in regions like Congo, Madagascar, and China, are inadequate. The environmental impact is devastating, and the social consequences are equally tragic.
From a strategic standpoint, the path forward must involve developing a comprehensive strategy that prepares for potential carbon taxes, de-growth scenarios, and supply chain disruptions caused by trade wars, material scarcity, and price volatility. This approach is not just about adapting to the inevitable changes on the horizon, but about rethinking the very foundations of how we operate. It’s clear that our current trajectory is unsustainable, and without significant adjustments, we risk exacerbating the very problems we aim to solve.
In developing a strategic approach, my goal has been to create a business model that not only allows for growth but also ensures that the work becomes meaningful beyond just financial rewards or feel-good moments. Whether we face a future where we must urgently address the challenges of climate change and resource scarcity, or one where hyper-consumption continues to dominate, the aim is to contribute to a circular economy that supports sustainability. Through this approach, as growth occurs, the overall footprint of the tech industry can be reduced, and the environmental impacts of consumption can be lessened. While this alone won't solve all our problems, it represents a commitment to fostering a more sustainable way of engaging with technology.
There is still a long journey ahead to fully implement this strategy and achieve these ambitions. Challenges like meeting net-zero targets by 2050 may seem insurmountable, but by maintaining a broad perspective and involving all stakeholders, significant progress can be made. The path forward requires unwavering dedication and alignment among all involved, recognizing that strategy and sustainability must be deeply intertwined. The effort to be a force for positive impact must permeate every aspect of operations, guiding decisions and actions at every level.
The democratic process has been distorted by vested interest around much of the globe.
It is therefore our vision (and moral responsibility) to deliver and nurture a cohort of first mover organisations, CEOs, shareholders and sustainability champions willing and able to step up to making it their (literal) business to co-create a dignified future for all.
The severe ecological overshoot (transgression of most planetary boundaries) that we have collectively brought about is setting in motion a process of planetary destabilisation. Yet, the current economic and financial systems that underpin the corporate world and stability of shareholder returns will crumble much before a collapse of the Earth systems fully unravels.
It is increasingly obvious that our social undershoot (failure to provide social foundations to all) is not a result of insufficient economic growth, but that of systemic pre-emption of basic needs and dignity for many, especially in the Global Majority and the Global South. It is a design feature and a crucial precondition for profitability of the current economic model and most of our business models. Continued social acceptability of this status quo may not last much longer.
- Contrary to popular belief, choosing between pleasing shareholders and doing the right thing is therefore a false dichotomy: the ethical and business imperatives are actually aligned. (What an opportunity!) -
Revamping our understanding of, and approach to corporate sustainability, is a contributing factor to and starting point for the above. We need to leave behind sustainability-as-usual (preoccupied with compliance with norms that are irrelevant for securing liveable conditions for all, as well as future business continuity; and with presenting inconsequential incremental improvements to unsustainable core business as tangible progress). We must upgrade to Sustainability-as-the-World-Needs.
Understanding the true imperatives of corporate sustainability - as defined by available science, ethics, a systems perspective and business acumen - will break the cycle of approaching it as an afterthought to an unsustainable core business.
With the democratic process heavily distorted by corporate and vested interest around much of the globe, we believe what the world needs now is a cohort of first mover organisations, CEOs, investors, shareholders and sustainability champions who are proficient at Earth- and ethics-aligned strategic acumen, and who can make it their (literal) business to co-create a dignified future for all.
It is our Vision (and moral responsibility) to deliver and nurture such a cohort, thus contributing to the necessary immediate, radical systems change, from where we can erect and pull on the most powerful lever