No more talking, workshop time: sustainable business a must for a green future - Mattias Axelsson

Return on capital has been the overall goal of the industrial system. It has led to increased prosperity and increased welfare, but it happened at the expense of the environment in a way we may not have initially anticipated or taken into account. Now we have to rethink and do something new before it is too late, writes Mattias Axelsson, PhD in business administration and researcher at the Stockholm School of Economics.

We are facing a shift in how we think about business: the business of the future must be sustainable in order to remain profitable. The future of climate and ecosystems has been systematically jeopardized and the consequences are becoming so great that the entire economic system is being put in permanent turmoil. Customers and thus companies risk perishing in an overheated world if we do not implement innovation to create sustainable business.

The pandemic has become a reminder that neither we humans nor our economic system are disconnected from nature. Therefore, it is not surprising that new regulations and sustainable investments are now being announced more frequently than ever. Business leaders and heads of government aim for CO2 neutrality within a decade or so. Snack is good, but now a workshop is needed. Are companies ready to go from word to deed?

The journey to sustainability is long and difficult. Cellulose from trees replaces plastic, but trees are also needed in the forest. It's just one example of genuine dilemmas and complex conflicts of interest emerging like never before, and few companies will be unaffected when business models need to become circular.

Post in Swedish.