Professor | LinkedIn Top Voice | Advisory Boards Member | Sustainability Strategy | Keynote Speaker on Sustainability Leadership and Corporate Responsibility
💭 "Sometimes sustainability costs more. So what?" This bold question headlines Andrew Winston’s latest article in MIT Sloan Management Review. He challenges the outdated idea that sustainability initiatives must always deliver immediate, short-term financial gains to be worthwhile. Here are three key insights: 1️⃣ Strategic decisions often cost more upfront—but they’re worth it: Businesses routinely invest in R&D, marketing, or technology upgrades that cost more initially but unlock long-term value. Sustainability is no different. Winston shows how initiatives like adopting low-carbon materials may raise short-term costs but position companies for future success. 🌍 2️⃣ The cost of inaction far outweighs short-term expenses: Ignoring sustainability comes with immense risks, as climate change disrupts operations and renders regions uninhabitable. Inaction today will halt tomorrow’s economic activity, making sustainability a necessity, not a choice. 3️⃣ Sustainability is a long-term value driver: While it doesn’t always deliver immediate returns, sustainability underpins long-term growth. There’s no economy on a dying planet, and true leaders prioritize enduring value over quarterly gains. In my view, his argument resonates deeply with debates about business’s role in tackling global challenges. It also raises critical questions about how we frame and act on sustainability within our organizations. These insights prompted me to reflect on three essential themes: 🌟 Courage takes centre stage: True leadership means bold decisions, even without immediate payoff. Prioritizing sustainability amid investor scepticism redefines success in a rapidly changing world. 🚀 Sustainability drives innovation: Sustainability isn’t a constraint—it sparks new technologies and products that address environmental goals while securing market leadership. 💡 Reframing costs as investments: We see R&D or digital transformation as investments, yet dismiss sustainability as a cost. Shifting this mindset reveals sustainability as a tool for resilience, advantage, and industry leadership. Andrew’s piece is a powerful call for businesses to rethink outdated notions of cost and embrace sustainability’s transformative potential. 🌱 What do you think? How can we reshape this conversation in our companies and industries? ⬇️ Full article available here: https://lnkd.in/en2RMqs4 #Sustainability #Leadership #Innovation #CorporateStrategy #FutureOfBusiness
Ioannis Ioannou, this is very similar to the concepts we were discussing on the podcast we just did... we need to be looking at intent vs. outcome. We can simply intend to do good in the world through business, but the outcome can create a rich business case filled with value generators. It's time to find new framing for this sustainability topic and tell new stories, or allow fear and opposition to drive the narrative.
Ioannis Ioannou It seems to me that many managers do not consider that the outcome of investments into sustainability eventually benefit them. We need to support decision makers in developing a clear and convincing idea for the "what's in it for me?" question.
…so…this “cost” word is problematic yet yes also a practical issue to deal with. But we all have to remember that “cost” is a word propelled into a financial / economic context where so many still can’t look at the reality of the costs we “externalise”. Time for economists and financial sector to address this.
A threshold of perfection is often held by detractors of sustainability…but not for anything else.
Completely agree! I'm always saying there is an elephant in the room: sustainable management practices implies investment and that decreases the P&L in the short term. And there is nothing wrong with that. Its an investment that will bring better results in a near future....
Wait did someone just say that outloud?! I’ve been wondering for 30 years how extractive industries that bearly return their cost of capital through the cycle are legit while efforts at restoration or circularity require higher hurdles.
As long as the one paying the price recognizes that the value outweighs any increase.
Thanks for the helpful builds. Yes, courage is a key focus of my thinking now. Also, it's semantics and we're saying the same thing, but i'd say sustainability IS a constraint, as in the good kind that drives innovation (e.g., how do we make this with no emissions?). Key challenge we face is how do we get companies to focus on the long-term when there's so much short-term chaos?
Roads and bridges ain’t cheap, but we’d be worse than foolish not to build ‘em.
Sustainability Leadership | PhD, MBA, MEng, CEng | Mountaineer and Adventurer
1wThanks for posting. The premise that firms think sustainability initiatives must always deliver short-term financial gains is partially valid but oversimplifies the issue. Investor pressures and quarterly reporting cycles do reinforce this mindset, but progressive businesses are already recognising sustainability as a strategic imperative. To accelerate this shift, we as sustainability professionals must help to reframe initiatives as investments rather than costs - traditional approaches that emphasise efficiency, waste, and cost reduction may inadvertently focus too heavily on immediate operational improvements rather than long-term strategic objectives. We need to align sustainability goals more closely with core business objectives and clearly demonstrate how they drive long-term resilience, innovation, and competitive advantage. Greater emphasis on metrics and ROI that connect sustainability to financial outcomes, rather than relying solely on social or environmental impacts, could strengthen this case. We must also acknowledge that industry alone cannot achieve this transition - the role of consumers, regulators, and other stakeholders is critical in internalising negative externalities, driving and supporting sustainability