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Sustainability is disrupting the market – Is your business ready?

15.03.2021

Sustainability, especially related to climate change, is one of the biggest global disruptors. It has an impact on the market, our mindsets and the way we consume.

 

Business disruptors, such as platform economy, digitalisation, and sustainability, contest the status quo. At the same time, they create new opportunities and enable novel operating models and innovations.

 

“ Governments will increasingly use carrot and stick approaches to incentivise companies to adopt sustainable business practices.

 

A disruptor has an effect on regulation and the expectations of investors and customers. Sustainability has, for example, pushed the financial sector towards a complete renewal. For the sector, sustainability is relevant to both risk abatement and finding new business opportunities. In the future, governments will increasingly use carrot and stick approaches to incentivise companies to adopt sustainable business practices.

 

Sustainability, as it relates to climate change, may radically change the competitive environment in the long run. It may give advantages for small and dynamic businesses. At the same time, sustainability may force successful companies critically examine their operating models, their supply chains and the whole industry.

 

The way companies view sustainability has changed radically within the past few years. Whereas it was previously seen as a support function and a compliance issue, sustainability has now become an essential topic of discussion for management teams and boards. It is increasingly part of the core of a business, and as such, it can guide the development of new products and services.

 

“ Companies that do not integrate sustainability and climate aspects in their business keep losing their competitive edge and value in the long run.

 

Companies that do not integrate sustainability and climate aspects in their business may have a good run for another few years. It is clear, however, that they keep losing their competitive edge and value in the long run. At the same time, the companies that see climate change and sustainability as an opportunity find new innovations and unpredictable new value chains.

 

To succeed in the age of climate change, companies must change. Only by renewing their business now, they can induce cash flow, attract investors, invest in new technologies and create value for shareholders in the long run

Ulla Heinonen

Managing Director, Partner

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