That means building viable, high-growth businesses while considering people and the planet. The best entrepreneurial thinkers are building these critical considerations into their businesses from the start — and their actions are inspiring positive change across the business landscape at large.
“Entrepreneurs are at the heart of progress,” says Cheryl Grise, EY Americas Industry and Solutions Leader. “We conducted a study that showed over every recessionary period, an increase in startups, entrepreneurial spirit and new levels of innovation that solve big problems.”
New levels of innovation can emerge within any organization, at any rank. Even at large corporations like Dow, Inc., a 125-year-old company, leaders are acknowledging how big-picture global issues tie to business stakes.
“Sophisticated investors would look at an industry like ours and say, ‘If you don’t address sustainability, there’s a tail-risk financially on your company,’” Jim Fitterling, Dow Chairman and CEO, noted at the Strategic Growth Forum® in November 2022. “Over time, people will either deselect your industry, or they’ll just move their investments completely to other alternatives.”
For sustainable, inclusive growth, then, it’s up to leaders — new or established — to foster a culture that encourages the open sharing of ideas, the centering of key threats such as climate concerns, and the nurturing of talent from all walks of life.
The new sustainability imperatives
For entrepreneurs and business leaders, it’s common knowledge that “doing good” — including taking on sustainability initiatives — is associated with positive business results. According to EY research, 80% of organizations see share performance improvement when they have sound sustainability practices, and 90% of sustainability-committed companies see a lower cost of capital. At the management consulting firm Indelible Solutions, CEO and Cofounder Joshua Hay considers such practices indispensable: “They provide the fundamental, core concepts that you must execute on in order to continue growing the business.” In other words, they’re the very foundation of company growth.
But there’s a gap between promise and progress when it comes to sustainability and other environmental, social and governance initiatives. A November 2022 EY report shows that business leaders and investors disagree on whether meaningful improvements are taking place and whether developments are being shared transparently. Per an EY survey, about three-quarters of investors want organizations to prioritize these commitments, even at the expense of short-term financial gain — but more than one-half of business leaders disagree, saying they’re held back from progress due to investors wanting immediate gains. Furthermore, one in five leaders claim investors are “indifferent” to long-term promises, including sustainability work.
Fitterling avoids corporate finger-pointing. “[Our] projects have to be profitable and low-carbon, [and] it’s not a question of either/or,” he says. “I don’t think the market is going to give a company at our age a pass.” Dow is working toward decarbonization, and Fitterling says investors are only asking to go faster. Some of the company’s current initiatives include creating, in Canada, the world’s first ethylene facility with no Scope I or Scope II greenhouse gas emissions. From there, Dow will convert an existing facility into a zero-emissions operation. The company is also pushing for stronger curbside recycling programs nationwide, working with organizations such as the Recycling Partnership. “[We have] a detailed path to 2050, [with these types of] projects all along the way,” says Fitterling.
