Letter: Turning companies’ principles into practice

Letter: Turning companies’ principles into practice

December 3, 2019

This article was written by Brook Horowitz, CEO of IBLF Global, published on the Financial Times.

 Sir, Paul Polman is right to call for companies to join efforts to tackle climate change (“Why companies cannot tackle climate change on their own”, December 2). But collective action, self-regulation and voluntary standards such as the sustainable development goals which Mr Polman had an active hand in, have been part of the corporate narrative for years. They have been entirely dependent on a relatively limited number of companies “doing the right thing” — usually led by visionaries such as Mr Polman. With the climate crisis no closer to resolution, these calls seem hitherto to have fallen on deaf ears, even among the global multinationals which are so well placed to do something about it.


The problem is not only with the global multinationals. I am currently in Vietnam, a country which, like China, is beginning to invest in renewable energy such as wind power. But I search the streets in vain for a sign of recycling or even basic waste or environment management. The reality is that despite their best efforts, many developing countries still have a long way to go before being able to meet their commitments. Without these countries and their companies being fully engaged in the process, Mr Polman will be making the same arguments in 2030.


In order to have impact, both regulation and market forces need to be harnessed worldwide. There are some optimistic signs such as the rise of impact investing into environment, society and governance (ESG). But at the root of the change that needs to occur is the very definition of the corporation.


If the profit motive remains the sole reward for shareholders, then there is unlikely to be any significant change in behaviour, at least not to the level required to resolve the climate crisis. Making a company’s “purpose” both measurable and a critical part of return on investment is what will turn principles into practice.

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