Net Positive

1. Embrace responsibility for all impacts to become net positive

You break it, you own it.

Expanding responsibility. Net positive companies take ownership of their entire value chain impact, from suppliers to end-of-life product disposal. This means looking beyond direct operations to consider broader societal and environmental effects. Companies should proactively address issues like:

• Climate change
• Biodiversity loss
• Human rights in the supply chain
• Community development
• Product lifecycle impacts

Creating value through responsibility. By embracing expanded responsibility, companies can:

• Identify new business opportunities
• Mitigate risks more effectively
• Build stronger stakeholder relationships
• Drive innovation in products and processes
• Enhance brand reputation and customer loyalty

2. Shift focus from short-term profits to long-term stakeholder value

Shareholder value should be a result, not an objective.

Redefining success. Net positive companies prioritize long-term value creation for all stakeholders over short-term profit maximization. This requires:

• Ending practices like quarterly earnings guidance
• Investing in employee development and well-being
• Building sustainable supply chains
• Developing products that solve societal challenges
• Engaging in multi-year partnerships to address systemic issues

Stakeholder benefits. By taking a long-term, multi-stakeholder approach, companies can:

• Attract patient capital and long-term investors
• Build more resilient businesses
• Develop deeper customer relationships
• Attract and retain top talent
• Contribute to solving global challenges

3. Set audacious goals that challenge boundaries and spark innovation

If you're not uneasy, you're not going far enough.

Stretch targets. Net positive companies set bold, seemingly impossible goals that force the organization to think differently. Examples include:

• Zero waste to landfill
• 100% renewable energy
• Improving the lives of 1 billion people
• Carbon negative operations

Benefits of audacious goals:

• Drive innovation and creative problem-solving
• Attract partners and collaborators
• Inspire and engage employees
• Signal leadership to stakeholders
• Create a sense of urgency and purpose

These goals should be science-based where possible, addressing planetary boundaries and societal needs rather than arbitrary targets.

4. Build trust through radical transparency and consistent action

Trust comes on foot and leaves on horseback.

Open communication. Net positive companies embrace radical transparency, sharing both successes and failures openly. This includes:

• Publishing detailed sustainability reports
• Disclosing product ingredients and supply chain information
• Sharing progress on ambitious goals, even when falling short
• Engaging with critics and inviting external audits

Walking the talk. Trust is built through consistent action that aligns with stated values. This means:

• Making tough choices that prioritize long-term value over short-term gains
• Addressing "elephant in the room" issues like executive compensation and tax practices
• Championing industry-wide changes, even if they create short-term disadvantages
• Investing in communities and stakeholders beyond shareholders

5. Create transformative partnerships to drive systemic change

If you want to go quickly, go alone. If you want to go far, go together.

Collaborative approach. Net positive companies recognize that many challenges are too big to solve alone. They actively seek partnerships with:

• Competitors within their industry
• Companies across different sectors
• NGOs and civil society organizations
• Governments and policymakers
• Academic institutions

Types of partnerships:

• Pre-competitive collaborations to solve shared industry challenges
• Cross-sector alliances to tackle complex systemic issues
• Public-private partnerships to drive policy changes
• Multi-stakeholder initiatives to set new standards and norms

These partnerships create multiplier effects, allowing companies to achieve far more than they could individually.

6. Advocate for policies that benefit society, not just your company

Net positive advocacy is broad coalitions having open conversations about policies that serve everyone's interests.

Shifting approach. Instead of traditional self-serving lobbying, net positive companies:

• Support policies that address societal challenges, even if they create short-term costs
• Work with NGOs and other stakeholders to develop policy proposals
• Publicly champion progressive regulations and standards
• Leave trade associations that lobby against societal interests

Benefits of proactive advocacy:

• Shapes the regulatory landscape in ways that benefit all stakeholders
• Builds trust with policymakers and civil society
• Creates a more stable and predictable business environment
• Demonstrates leadership and attracts like-minded partners

7. Cultivate a purpose-driven culture that attracts and inspires talent

Purpose is the best way to inspire and unlock the potential of the whole organization.

Embedding purpose. Net positive companies integrate purpose into every aspect of the organization:

• Recruitment and onboarding processes
• Performance evaluations and compensation
• Product development and innovation
• Brand positioning and marketing
• Partnerships and acquisitions

Cultural benefits:

• Attracts top talent, especially younger generations
• Increases employee engagement and retention
• Drives innovation and problem-solving
• Creates a shared sense of mission across the organization
• Builds resilience during challenging times

Companies should help employees discover their personal purpose and connect it to the organization's mission.

8. Rethink consumption and growth for a sustainable future

We need to measure what we treasure.

New economic models. Net positive companies challenge traditional notions of growth and consumption by:

• Developing circular and regenerative business models
• Designing products for longevity and repairability
• Shifting to service-based offerings instead of product ownership
• Educating consumers about responsible consumption
• Advocating for new economic metrics beyond GDP

Balancing growth and sustainability:

• Pursue growth in sustainable products and services
• Decouple revenue growth from resource consumption
• Invest in restoring natural capital
• Develop business models that thrive with less material throughput
• Collaborate to create industry-wide shifts in consumption patterns

9. Measure success beyond financial metrics to include societal impact

GDP measures nothing more than the speed with which money and stuff pass through the economy.

Holistic measurement. Net positive companies adopt broader definitions of success, incorporating metrics such as:

• Environmental impact (carbon footprint, biodiversity, water use)
• Social value creation (jobs created, lives improved, community development)
• Employee well-being and satisfaction
• Customer health and safety
• Contribution to the UN Sustainable Development Goals

Integrated reporting. Companies should:

• Publish integrated reports that combine financial and non-financial performance
• Set targets and compensate executives based on ESG metrics
• Engage investors on the link between sustainability and long-term value creation
• Advocate for standardized ESG reporting frameworks

10. Defend democracy, science, and other pillars of a thriving society

How can we possibly tackle global, shared challenges and seek a just, equitable world if we can't operate from a single basic set of facts?

Broader responsibility. Net positive companies recognize their role in upholding societal institutions by:

• Speaking out against threats to democracy and human rights
• Supporting evidence-based policymaking and scientific research
• Combating misinformation and promoting media literacy
• Investing in education and civic engagement initiatives
• Defending the rights of marginalized groups

Business benefits:

• Creates a more stable operating environment
• Builds trust with stakeholders and society at large
• Attracts employees and customers who share these values
• Mitigates long-term risks to the business and society
• Positions the company as a responsible corporate citizen

Companies must be willing to take stands on critical issues, even if it creates short-term controversy or backlash.

Last updated: August 8, 2024