Post-Covid and Sustainability: Three Areas to Focus on as Business Does NOT Return to Normal

It’s become as much of a cliched phrase as “you’re on mute”:

“When things go back to normal…”

But the evidence is mounting: Our world has been dramatically reshaped, and we are not going back to normal. And that is a good thing.

Business and societal leaders today have a unique, once-in-a-generation opportunity to shape the systems, institutions, policies and beliefs on which the world turns. They are grasping this opportunity with both hands, and the landscape of business as we know it is undergoing an enormous transformation.

Dr. Victoria Hurth, Fellow, University of Cambridge Institute for Sustainability Leadership, describes the scale of the change like this: “It Is sometimes hard to get a handle on how rapidly the foundations of a… business-as-usual model are changing and a new model, based on resource regeneration and equitable wellbeing outcome, is being born.” [1]

This seismic shift is going to require rapid adaptation, and the ability to ruthlessly prioritize strategic decisions and resources in order to keep up. Those who can do this will likely see significant advantages in the post-Covid world.

These are the key areas we think you should focus on, as we look to the future:

Purpose-Led Businesses Become the New Norm

While the term ‘purpose’ has become the new ‘vision and mission’ in corporate jargon, the pandemic has seen the rise and rise of the truly purpose-led business, that exists to create positive social change. Think Patagonia, Tom’s Shoes, or Tesla.

 Organizations that go beyond the buzzwords and can genuinely bring a purpose to life will likely see increased social capital, lower downside risk and greater return on equity in the changing corporate landscape, as investors look for safe bets and consumers demand transparent, ethical practices.

For some businesses, this will lead to a radical reassessment of the nature of their operations. A study by Strandberg Consulting observes that “leaders are transitioning their businesses out of unsustainable operations and products to regenerative and equitable business models.” [2]  This might mean reprioritizing investment in industry or product sectors, or saying no to some clients in order to say yes to others.

Focusing on why your company exists, and bringing this clarity of purpose to strategic decision-making as you prepare for what’s next, will help position you to lead.

No One Left Behind

The pandemic lifted the veil on the vast, and widening, gap between the haves and the have-nots in our society. From low-income and gig workers devastated by job losses, to children missing educational opportunities, to women being squeezed out of the workforce due to the irreconcilable demands of their employers and their families. And of course, the long-overdue social awakening to the treatment of BIPOC and other racialized members of our communities.

This new awareness will lead to new expectations for, and scrutiny of, businesses’ social practices. It will impact approaches to hiring and talent management, benefits, inclusion initiatives and workplace culture. Leaders will be expected to foster environments where success is truly possible for all, and policies and practices do not leave marginalized groups behind.

An Integrated Approach

The World Economic Forum recently noted, “The health of the planet is inextricably linked to the health and wellbeing of people and businesses across the globe. Leaders who are preparing to address both with strong strategies and decision-making will set their businesses and their people up for success in the future.”

Integration will be key to businesses looking to not just survive, but thrive, in a post-Covid world. Isolated tactics to address environmental, social and governance tactics will no longer be enough to satisfy investors and stakeholders, who will expect businesses to demonstrate a strong ESG proposition across all elements of operations, with relevant ties to the nature and purpose of the business.

Integration will likely be supported by rapidly emerging technologies that facilitate everything from supply chain transparency to customer analysis to carbon footprint reporting.

What now?

The shift in thinking about the role of business in society provides a significant opportunity, or ‘positive risk’ for businesses who have adopted, or are ready to adopt, a coherent sustainability proposition.

[1] Coro Strandberg. Future of Business in Society: Global Thought Leader Study. March 2021, p.5

[2] Strandberg, Ibid, p.3.