In July 2018 Australian Billionaire James Packer resigned from 24 boards in total where he held directorships. His spokesman in a statement announced that Packer was “suffering from mental health issues” and was seeking treatment for depression. Packer is not a lone case.
Climate Anxiety can be a trigger to mental health challenges - for fear of the future and well-being of loved ones. Creating boards that are able to open up about doubts, challenges and concerns is like adding a booster gear to their functioning, reaching deep into an individuals motivation and passion. It also could add a whole new dimensions to professional discussions and help to ask harder, but equally necessary questions to the executives running the day-to-day business.
Greenwashing is defined as 'the expression of environmentalist concerns especially as a cover for products, policies, or activities'. There also exists Diversity-washing, Governance-washing, or skill-washing for example.
In itself a truly nasty thing, there is an unexpected upside to Greenwashing however: it will come back to haunt the greenwasher. Maybe not fast, but no doubt steadily. Just like the tortoise won the race against the hare.
There are two approaches on how we can define of what is viable and desirable for our global economy.
In one, the 'soft attributes' and non-physical factors such as consumer desires, lifestyles or distribution of goods are a fixed attribute. In the other, quantifiable, physical attributes - amongst them natural resources - are fixed.
The challenge of boards in this time and age: Recognising that the first - the present - is failing. And outlining the path towards the second.
In mountaineering there are three distinct methods to handle the rope. Each technique has some distinct application characteristics. And as a consequence, a direct impact on the team work, team effectiveness - and even survival. What can boards learn from alpine roping techniques?
Over the last 12 months, the Doughnut Economics Action lab developed a methodology – denominated ‘Creating City Portraits’ - , tested in three different cities of the global North. So the question is: Could the methodology work for business too? The answer: Yes in principle. But commitment is at the heart of it.
The cat is – long-time coming - finally left out of the bag: while drawing up a Covid19 recovery package, EU legislators have decided to introduce a levy on non-recycled plastic as per 1st of January 2020. Reading through the text, two points offer a considerable surprise: The short notice, the wording, and the focus on packaging.
But how come that legislators seem to drive the industry R&D agenda? Here a few questions for boards to ask their CEOs to get to the bottom of this.
Many of the most important resources our current civilisation depends on – all of them finite natural resources - form part of what historically would have been called ‘The Commons’. And yet, many of them are economically treated as 'income' and not the valuable and finite 'assets' they are. That again is the tragedy of the commons.
The supply chain.
It has been accepted a long-time ago: supply chain is a risk. Or better: a RISK in capital letters.
But also a word that sounds impersonal. Very akin to a factory being a cogwheel in a much larger clockwork. And while the definition of the term does list ‘people’, the focus is very clearly on the idea of it all being a neat system of seamless interactions.
This post is going to be somewhat more personal than how I usually write. Normally, I try to write and argument as factually and data driven as possible. I’m not one that feels comfortable to carry my emotions on my sleeve. And even less as some of the topics I write about are truly important to me.
But: There are a couple of things that upset me in the present. They related to the #blacklivesmatter movement on the one hand, but maybe more specifically to the related discussion on #racism – globally.
-> Includes a list of practical resources for corporate boards
Unless the top line of company executives are held accountable for and judged by their contribution to the company’s risk management and mitigation efforts, including importantly CSR and sustainability performance, the company will struggle. Without senior commitment and engagement, the system only ever allows for minor ‘bug fixes’.
We need new business models that are not predicated on selling more stuff to more people.
And because in the 'Here and Now', there is truly not much more to say, I could finish with the above quote.
Except that: Those ‘new business models’ are not reality. Far from it.
About the Role of the Board in the 'Why'.
As I write this, it is late April.
And our lessons from the last few weeks in Corona lock down and the impact of the pandemic on our communities and societies, all over the world, have thrown an even harsher light onto some of the realities we either assumed as a given, or worked hard to change for years already.
And the lessons have been truly tough medicine.
It is end of March / early April 2020 as I write this. Corona (Covid19) increases its grip onto the world. Draconian, tough policy measures are being put in place limiting people's lives ... and rattling the global economy.
Could it hall happen again in the future? And if so - in what way?
What would the Inevitable Policy response mean for the consumer goods industries? What could the effects be? This instalment of a 3-part series looks at: consumption patterns, role of consumer goods industries for economic development, population behaviours when affected by severe conditions
CEO pay is an ongoing topic. Stock options are a regular part of their pay package.
The way CEO pay packages handle stock options may foster short-termism. Or contribute to remedy it. Some thoughts.
What would the Inevitable Policy response mean for the consumer goods industries? What could the effects be? This instalment of a 3-part series looks at shifts in costing paradigms, in transportation, and in supply chain structures.
We all can see it happening before our eyes: Despite the Paris Climate Agreement to a climate trajectory of ‘well bellow’ 2 degrees (hence where the 1.5C number stems from) – the trajectory is not anywhere near that number. The Inevitable Policy Response (IPR) is the response by governments and legislators around the globe in taking action – hence enacting laws – in line with the 1.5 Degree climate goals.
Supply chains, as a discipline of expertise, have come out of the hiding and recognise their role in reducing corporate risk. This is notably and specifically the case in fashion and textiles. At the same time, 'design' - not just in the creation room, but in all facets where it impacts the making, delivery and use of a product or service, is increasingly recognised as relevant.
The fashion industry, nearly like no other, has gone through dramatic changes in the last 20, 30 years. Indeed it finds itself in the present at a crossroad. Resource scarcity is triggering shifts in business models and supply-chains; waste is the new resource; customers are the sales channel of the future; and legislation is becoming ever more stringent. The fact though is: if looking back at predictions of the 1950 and 1960, or even earlier (physical artefacts not considered), the reality we live in compares best to the predictions that were considered ‘totally crazy’ in their time.
I had the chance to speak at the Green Business conference last week in Istanbul about future market scenarios for the fashion industry. The conference is an event of the Sustainability Academy in Turkey.
Key highlights from the event