Becoming Net Positive: The Impetus for Effecting Systemic Change
6 min read
Awareness of the climate crisis has increased dramatically in recent years,
but the bold actions needed to protect the environment have not kept pace.
Scientists have warned for years that we must limit global temperature rise to
less than 2°C to mitigate the worst consequences of anthropogenic climate
change. Although sympathetic to this rallying cry, many companies balk at taking
the necessary steps to rein in their greenhouse gas emissions and decrease other
environmental impacts.
Business leaders face a tragedy of the commons — fearing penalties for being
courageous while competitors continue to exploit shared resources without
consequence. But substantive action cannot be postponed indefinitely. The issue
is too critical, the required investments too substantial, and the demands for
change too persistent to ignore.
So, how can corporate leaders embrace the climate challenge in a way that
benefits the planet and their businesses? One compelling answer is to become net
positive.
Understanding net positive
The Future of Scope 3: Mastering Value Chain Sustainability with Insetting
Join us for a free webinar on Thursday, April 17, when leaders from ClimeCo and LSB Industries explore insetting as a tool to tackle Scope 3 emissions. Learn how to align sustainability initiatives with business goals, avoid compliance pitfalls, and gain a competitive edge.
In their book, Net Positive, former Unilever
CEO Paul Polman and sustainable
business expert Andrew Winston
argue that companies should strive to give back more to the world than they
consume. They lamented that a focus on short-term profits has distracted
business from developing more holistic
approaches
that consider long-term impacts on the environment and society.
The idea of net positive is simple yet profound: Businesses should not only aim
to neutralize their negative impacts but also actively work to improve the world
— by integrating issues including pollution and inequality into the core
principles and mission of a company.
Net positive therefore goes beyond net
zero
— which achieves balance between emissions produced and emissions removed — by
creating a net benefit.
The history of net positive
Back in 2014, Capgemini
collaborated
with Forum for the Future, BT, Coca-Cola Enterprises, The Crown
Estate, IKEA,
Kingfisher
and SKF on the then-largely theoretical concept of net
positive.
Polman adopted the idea and applied it at Unilever, where it made (and continues
to make) a significant impact.
Throughout Polman’s tenure as CEO, Unilever was consistently ranked as the top
company worldwide for
sustainability
— and that was with total shareholder return of nearly 300
percent, far higher than
its rivals. The consumer packaged goods company demonstrates that net-positive
principles can lead to societal benefits and long-term business value.
Polman and Winston’s 2021 book spread the concept in the business world and
compelled companies to rethink their roles and responsibilities in the climate
crisis.
The net-positive framework and maturity model
In collaboration with other thought leaders and sustainability experts,
Capgemini
launched
the Net Positive Advisory Panel at
Sustainable Brands
2022 in San Diego.
The group developed and operationalized the framework, which helps companies
focus on becoming net positive across three areas:
-
Soul — the values and purpose that define the organization
-
Bloodstream — the systems and processes that enable the organization to
function -
Impact — the outcomes and
legacy
of the organization’s actions.
It can be tailored to different organizational contexts.
We took this a step further by developing a net-positive maturity model,
which assesses an organization’s readiness and progress on the journey across
multiple dimensions — including leadership, culture, partnerships and impact on
the environment and society. It provides a structured approach to measure the
current state, identify gaps and set future targets.
The Hispanic Technology Executive Council
(HITEC) — a professional membership organization — was among the first to
apply Capgemini’s net-positive maturity model through its Emerging Executive
Program, dedicated to developing the next generation of Hispanic technology
leaders. In collaboration with Capgemini and members of the advisory panel, 111
participants from 46 companies used the maturity model to analyze 11
organizations, identify areas for improvement and recommend concrete actions to
improve sustainability performance.
The role of generative AI
Gen AI is an important arrow in the sustainability quiver, but it must be
handled
carefully.
By this point, it’s well known that Gen AI consumes significantly more
energy
than other technologies. On the other hand, Gen AI-powered tools can help
businesses and governments identify patterns in big data that inform more
sustainable decisions: optimizing energy use, reducing waste, designing
climate-resilient
cities,
etc.
For example, the HITEC program would not have been able to dissect the large
datasets of each company if it didn’t have access to advanced technology.
Members could understand the intricacies of the companies with relative ease,
thanks to Taza — a remarkable, AI-powered
sustainable-intelligence platform.
Taza develops an echo report for each company, summarizing vast amounts of
publicly available information to provide key insights for decision-making. To
put it simply, the platform handles the tedious and burdensome work of sifting
through reams of facts and figures, so the business leaders can focus on what’s
most important: developing a strategy for moving beyond net zero to become
regenerative and net positive.
Building a culture of regenerative practices
Achieving net positivity will require more than just frameworks and advanced
technologies. It needs a widespread cultural shift toward regenerative
principles. Anyone
trusted with driving organizational change knows that transforming technology is
easy compared to changing sometimes long-held beliefs and routine behaviors.
The C-suite will need to think beyond shareholder
capitalism,
popularized by the view that corporations were only responsible for increasing
shareholder value. Lately, a growing chorus has advocated returning to what had
previously been the norm in the US: stakeholder
capitalism,
which considers the interests of everyone involved — including employees,
customers, suppliers, communities and the environment — and promotes long-term
thinking and more sustainable practices.
Furthermore, it’s important for
leadership
to foster a culture of regenerative practices in which all employees understand the organization’s net-positive ambitions and feel empowered to be
part of that journey.
In recent years, more workplaces encouraged employees to
participate in optional, evidence-based mindfulness programs to improve mental
health, reduce stress and enhance concentration.Research indicates that
practicing mindfulness can foster a deeper connection between people and with
nature itself. In a
report
on the role of mindfulness in confronting climate change, UK-based policy
institute The Mindfulness Initiative and the Lund University Centre for
Sustainability Studies write: “Most large-scale climate action to date has
focused upon technical solutions to physical problems. Increasingly however,
voices in the sustainability field warn that neglect of human inner factors
driving the climate crisis leaves theories of change wanting; in part explaining
the failure of current policies to deliver adequate response.”
Course-correcting business
No major organization has achieved the lofty goal of becoming net positive, but
several have made large strides:
Microsoft
has committed to becoming carbon negative by 2030,
IKEA
pledged to halve emissions by 2030, and
Patagonia
promised to be carbon neutral by 2025.
Capgemini
has similar ambitions. We aim to be carbon neutral in our
operations no later than 2025, carbon neutral across our supply chain by 2030,
and net zero by 2040. The concept of net positive inspires us on this journey.
We will continue to iterate upon the net-positive framework and maturity model,
help our clients deploy sustainable solutions, and partner with all sorts of
stakeholders to build a greener future for everybody.
It’s time for bold, decisive action. We cannot afford to neglect our
collective duty. Set your course towards a net positive future, starting
now.
Let’s steer the future in the right direction.