The costs to business of not adapting and changing to address the climate crisis are starting to exceed the costs of the changes that are necessary, former CEO of Unilever and now environmental advocate Paul Polman says.
Speaking at Rabobank Farm2Fork conference on Thursday, Polman said for businesses to thrive now and in the future, they must become “net positive” – giving more to the world than they take and by adopting the mindset of “profiting by fixing the world’s problems instead of creating them”.
More than 1600 delegates came together at Sydney’s White Bay Cruise Terminal for a day of thought-provoking insights on trends, innovation, and best practice in the food and agriculture industries.
Polman went on to say people around the world are demanding changes, with two thirds of them buying brands that align with their values, but there is the final third that needs addressing.
Companies willing to be part of the solution will be the ones that will succeed, he said. “All the elements point in that direction, but the speed and scale data show we’re not there yet. You need to make the economics of the transition work for farmers and frankly, work for everyone. The answer is not just more technology or more individual commitments, it is SDG 17.”
[UN Sustainable Development Goals 17: Strengthen the means of implementation and revitalise the Global Partnership for Sustainable Development]
Polman said there were three components, firstly, systems of deeper “transformational” partnerships throughout the value chain – between governments, communities, and the private sector. Farmers need to challenge their peers to improve environmental performance, lobby for greater accountability and rewards, and experiment with practises that benefit themselves and nature. And thirdly, ensure the economics work for farmers, who are at the heart “of all this”.
“I can’t stress that enough in a functioning food system,” he said.
Polman raised the concept of “net positive leadership” because change ultimately takes leadership and courage. He said many can talk about the need to change, but more struggle with how to.
“In net positive companies, they ask themselves two very simple questions. How can we profit from solving the world’s problems rather than creating them and is the world a better place because our company is in it,” Polman said.
“What does courage look like? It means having a broad growth mindset, looking at societal issues not as risks but opportunities to create value. Looking beyond the short term of the quarterly earnings and towards the longer term of value creation.
“Setting targets that science demands, not targets you can simply get away with. And leaders who understand that it is not about competitive leadership, but collaborative leadership.
Polman said the transformation we need is much bigger than the scale of the industrial revolution and the speed with which we need to implement it.
“We can’t be a purposeful company if we are not purposeful ourselves. Wherever we are in the value chain, we all have to take responsibility for the full impact we each have,” he said.
