Corporate sustainability is at a crossroads according to the Harvard Business Review. This is primarily due to a shifting political landscape. Before the crossroads, there had been much progress made over the last two decades. Several well-known companies have already started to back-pedal their ambitions while the U.S. government has quickly begun undoing various sustainability commitments. On the other hand, there has been great progress made in China regarding renewable energy thanks in part to global investments and capital expenditure that have secured infrastructure which has lowered the marginal cost of renewables.

Over the last 50 years, the number of disasters caused by climate change has increased by a factor of five. Recent events such as the Los Angeles fires are a result of failure to contain carbon emissions. Hopefully, popular opinion with start to reshape politics along with deteriorating climate conditions. All is not lost since new business models are helping to transform sustainability into profits thereby giving businesses a competitive advantage. Maersk, for example, has invested a great deal in low-carbon fuels along with the electrification of port operations. This has helped to set the company apart from their competitors because it is now considered a lower emissions supply-chain partner. 

Discussion Questions:

  1. How significant do you believe corporate sustainability is in driving long-term economic growth and competitive advantage? Explain.
  2. Are you surprised to learn that some companies are reducing their sustainability efforts in response to economic challenges and changing political policies? How do you think this decision impacts their long-term economic performance and market competitiveness?