Sustainability is the magic word that recurs often in public debate and in the speeches and strategies of the world's largest companies. But do we really know what sustainability means to today's companies and consumers?
On the one hand, there are companies and organizations that make concrete efforts, making virtuous decisions for the health of consumers and the planet. On the other hand, there are companies that are guilty of so-called "green washing," that is, of an environmentally friendly attitude only on the surface.
To understand what it really means to do sustainability, let's start by understanding the 5 elements that are characterizing the topic of sustainability in this specific historical phase we are experiencing.
1. A broader definition of Sustainability
When we talk about sustainability, it is good to clarify and specify what we are referring to. I believe that, to date, referring to it by focusing only on the environmental aspects (while central and fundamental) is reductive and limiting compared to the potential that is contained in these issues. In recent years, the market has moved forward and reached such a level of awareness that it is no longer premature to talk about sustainability in terms of all three of its constituent macro-blocks: environmental, economic and social sustainability. When we talk about sustainability in its social dimension, we refer to the principle of Social Inclusion, which can be defined as "the process of improving the conditions under which individuals and groups participate in society-improving the capabilities, opportunities and dignity of those who are disadvantaged on the basis of their identity."
Adopting a model based on social inclusion is an ambitious process that can direct business activities toward full accessibility and participation in society for people with disabilities and in vulnerable conditions, opening up new win-win opportunities for both the end users of the solutions and the companies themselves.
2. The ongoing shift in public awareness of climate change and the opening of huge funding opportunities
The driving force behind this sustainability-related awareness is the climate crisis we are currently experiencing. The effects of climate change are now evident, tangible and concrete, and the direct link between human activities and climate impacts is now unanimously recognized by leading scientists and institutions. This stance of the scientific community, combined with the growing attention to the issue by citizens, has prompted institutions to allocate large sums of money internationally to steer the market in this direction and to set increasingly stringent targets to mitigate and slow down the climate process as much as possible. Suffice it to say that at the European level, with an investment plan for the period 2021-2027 [EU Long-Term Budget + Next Generation EU] of 2.018 trillion, about 80 percent (1.63 trillion) is dedicated to sustainability-related investments, a quarter of which is specifically for issues related to the environment and the exploitation of natural resources.
3. Circular economy as a pillar of sustainability
It is now important to introduce the concept of the Circular Economy to understand how it can serve as an enabling model and glue between the three souls of sustainability. When we talk about Circular Economy, we refer to five business models. We talk about Sustainable Input, Product as a Service, Sharing Platform, Life Extension, and Recovery and Recycling. We refer to "business models" because we talk concretely about principles that impact and intersect with all activities in the value chain, thus focusing on aspects of economic sustainability and initiatives that have a positive impact on organizations in terms of increased value generated and/or reduced costs and efficiency.
Circular consumer: This consumer, who does not exist in his or her full identity because he or she is divided into different communities (such as PV, EV, 2Hands, Bio, Sharing, etc.) that will merge through the development of the platform, does not want to plant trees; he or she wants to change the world. Therefore, circular consumers have two goals: one focused on values such as environmental protection and sustainability, the other on financial savings and opportunities to spend their money better. These consumers seek quality and durability, have no time to waste, and avoid waste in general because they dislike the concept itself. Finally, consumers also expect to save money because they want to be rewarded by the system for their sustainable choices.
4. The extraordinary role of digitization and innovation for sustainability
How today can we really think about innovation that is not sustainable? Digital technologies play a decisive role in the green transition because they are an enabler for the transition to the circular economy. In studies published in the Harvard Business Review, researchers have found that organizations leading in sustainability are also leading in innovation. But why? The market recognizes and rewards new ideas because sustainability practices rely on new ideas to continuously optimize and find efficiencies, and idea generation becomes second nature to all employees. They are much more likely to think of solutions for other (foreseen and unforeseen) problems as well.
Employees begin to see the entire value chain. When they are looking for efficiencies, they end up thinking beyond their own small scope and about the rest of the company, its partners and procedures. This expansion allows for more comprehensive and valuable ideation.
5. The negative effects of years of GREEN WASHING activities and overcoming Offsetting
First, the term Greenwashing should be revised, given the increasingly broad scope of the current definition of Sustainability. It should be replaced with a broader Sustainability washing. Now that sustainability is a strategic lever to sell products and get funding, everyone is trying to ride the wave! How can we tell that we are dealing with greenwashing? When the information provided is too vague and approximate, unsupported by objective data, or if, on the contrary, it uses very technical, almost incomprehensible language, perhaps resorting to suggestive images: we are probably dealing with companies that have been greenwashing.
OFFSETTING IS THE PAST: In recent years, communication has been based on offsetting our impact by planting three plants, but not on changing the organization's behaviors. Consumers are tired of generic offsets and demand concrete efforts.
Find out how EnelX's sustainability program was developed!
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