This article titled “The new year looks promising for sustainable business” was written by Martin Wright for the Guardian Professional Network, for guardian.co.uk on Tuesday 3rd January 2012 12.26 UTC
So, 2012, what’s it to be? Can we find a glass half full of something vaguely cheering, or are we staring at the dregs in the new year?
What hope for sustainable business when we have economies in atrophy across the world, a damp squib of a climate deal in Durban – and David Cameron’s drive to lead the ‘greenest government ever’ looking at least two huskies short of a sledge?
Let’s get the grim stuff over with. Inevitably, tight purse strings mean less money – whether bank loans, business investment or state funding – for all sorts of sustainability initiatives. And a divided government will hardly risk inflaming the Tory backbenchers on whose support it depends by making bold gestures on climate, say, or energy.
So where’s the good news for 2012?
First, despite numerous gloomy predictions, there is precious little sign that mainstream business is going soft on sustainable development. If it really were just an optional add-on, a luxury for the good times, then the streets should be filled with newly redundant sustainablity managers. In practice, I know of just one who has lost their job in the past year. And as Forum for the Future’s Sally Uren points out, such roles are rising up the responsibilities ladder. So it’s goodbye sustainability manager, hello chief sustainability officer.
Meanwhile, the contrast between the way in which sustainability leaders – companies like Kingfisher, Unilever and Marks & Spencer – are sticking to their course, while the government under chief petty officer Osborne is noisily trimming its sails, couldn’t be more striking. Unlike politicians, business leaders realise they’re in it for the long term.
Second, while cuts may indeed stymie investment, price signals send out a more nuanced message. The same rising costs of oil and resources which dampen the economy also put a premium on energy efficiency. And there’s nothing like soaring energy bills to focus the mind on low-carbon alternatives. So it’s just as well that the cost of solar energy will keep falling, with some experts suggesting grid parity is just a few years away. In hindsight, this could make the dip caused by the government’s shock move on feed-in tarriffs look like a very small blip indeed.
Third, tough times can be good for new business models. David Bent, deputy director of sustainable business at Forum for the Future, points to the surge in peer-to-peer startups – many of which, from AirBnB to WhipCar, are inherently sustainable (maximising the use of idle resources). Expect this to be a surefire growth sector in 2012. Some established companies, too, are exploring new consumption models. Patagonia even went so far as to exhort its customers not to buy stuff they don’t need. While Unilever’s CEO Paul Polman has spoken out against “mindless consumption”, arguing that “we have a unique opportunity to reinvent [it], to bring about ‘mindful’ consumption.”
So, there are three reasons to be at least moderately cheerful. Or to quote that old African saying: “Hope and optimism – in spite of present difficulties.”
Martin Wright is editor-in-chief of Green Futures at Forum for the Future
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