21.11.2024
3
mins
By
Lucy O'Connor
The climate crisis has reached a pivotal moment. Extreme weather events are becoming more frequent and devastating, and business owners are realising that building climate resilience is no longer optional—it’s essential for survival.
But how can leaders step up to meet this challenge and successfully drive sustainable transformation? To find answers, we spoke with Mike Barry, former Director of Sustainable Business at Marks & Spencer and a pioneer in sustainable business transformation. In this conversation, Mike shares actionable strategies for embedding sustainability into business operations and offers his perspective on the leadership required to successfully drive change.
Many businesses have an incremental improvement mindset when it comes to climate action—aiming for small, annual reductions in carbon emissions. However, Mike Barry argues that this approach is inadequate in the face of the rapidly escalating climate crisis.
“Transformation, not incrementalism, is the only viable path forward.” Mike says. This shift requires nothing short of a “radical reimagination of products and services, our basic business model, and the value chain that underpins it”.
He warns that relying on a handful of sustainability specialists within an organisation will not drive the change needed. Instead, transformation must engage every department—from marketing to engineering—and embed sustainability into the daily operations of the entire business.
According to Mike, businesses looking to embed sustainability into their operations must begin by addressing three questions in tandem at the leadership level:
This question integrates sustainability into the very heart of a company’s overall strategy. It requires leaders to understand the urgency of aligning their business with planetary boundaries while identifying opportunities in rapidly emerging sustainable markets.
This involves setting clear, measurable targets and, crucially, creating actionable plans to achieve them. "It’s not enough to set targets; you need a plan to deliver them," says Mike, noting that fewer than 1% of the world’s largest companies have comprehensive plans to turn ambitions into reality.
This, Mike believes, is the most critical question. “Transformation requires collective action—not the isolated efforts of a dedicated sustainability team,”. Achieving this means engaging employees, supply chain partners, and customers as active participants in the sustainability journey.
Leadership plays a pivotal role in driving successful sustainability efforts. According to Mike, strong leaders can articulate a vision for sustainability through the lens of the organisation’s core values and strategy.
For example, Mike shares how Marks & Spencer redefined its commitment to “quality.” Traditionally, quality was about functionality—products that worked well, like shirts with buttons that didn’t fall off or packaging that didn’t leak. But as customer expectations evolved, M&S expanded the concept to include emotional value: products that are good for the planet and the people who produce them. This shift allowed M&S to embed sustainability into its core offering in a way that resonated with both employees and customers.
Mike explains, "Great leaders find an anchor point for how they bring sustainability into their business. It’s not a technical preoccupation; it’s something that galvanises the entire organisation." By linking sustainability to a shared purpose, leaders can motivate their teams to work toward the same goal.
Strong leadership also involves demonstrating the tangible business benefits of sustainability. Whether through improved operational efficiency, supply chain resilience, or employee engagement, leaders must make the case that sustainability is a smart business decision, not just an ethical one. As Mike notes, "Sustainability must be a compelling business proposition, not a nice-to-have."
Consistency is also crucial. Too often, sustainability is addressed once a year in a press release or annual report, only to disappear from the agenda for the rest of the year. "Sustainability has to be part of the day-to-day operations of your business," says Mike. "It must be woven into your leadership style and messaging, becoming part of the fabric of how your organisation operates."
Finally, strong leaders know how to prioritise. They focus on the actions that deliver the greatest value to their business and customers, while collaborating with industry peers to tackle broader challenges. "You can’t do everything—so invest in what makes the biggest difference," Mike advises.
In the past, businesses often waited for regulations or consumer demand to drive sustainability. However, this passive approach is no longer an option. According to Mike, two major forces—extreme weather events and market disruption—are pushing businesses to act now.
Extreme weather events, like the devastating floods in Valencia, are a wake up call for businesses. “I’m starting to see a new narrative emerge where companies are realising they need to future-proof their operations." Mike observes. Building resilience is no longer optional—it’s essential for survival in an increasingly unpredictable climate.
Market disruption is another powerful driver. Mike points to the automotive industry as an example. While legacy manufacturers hesitated to fully embrace electrification, focusing instead on minor efficiency improvements, Chinese companies seized the opportunity to innovate. They established dominance in electric vehicle exports, reshaping global markets, and posing a serious threat to economies reliant on traditional car manufacturing, such as Germany and Japan.
“You’re going to get transformed whether you like it or not,” Mike warns. “So, put yourself on the front foot with a mindset that says, ‘It’s going to happen, and I need to plot a route myself to a very different place quickly to win in a new marketplace.’”
Mike believes that climate conferences, like COP, while not without flaws, remain vital for global collaboration. He says, "In a flawed world, COP has been important as a place where people can come together," and without it, we would be in a worse off position. To improve future COP conferences, Mike outlines three priorities:
Mike calls for greater cross-sector collaboration to tackle emissions and address the climate crisis as a united front.
"COP29 is happening against a backdrop of a very troubled, complex world, with conflicts, elections, and economic challenges. But the global community must lift its head and confront the existential weather patterns we’re seeing, fueled by the climate crisis. It doesn’t matter how many tanks you have, how many trade barriers you impose—none of us can solve this on our own."
Mike emphasises the need for increased financial support for developing countries that suffer the greatest impacts of climate change despite contributing the least to the crisis. He argues that this is not just morally imperative but also essential for maintaining global stability.
The acceleration and scaling of innovative technologies are crucial to achieving net-zero goals. “When we get innovation right, progress becomes exponential,” Mike notes.
The path to a sustainable future requires courage, clarity, and collaboration. As Mike Barry highlights, businesses must move beyond incremental changes and embrace transformation—integrating sustainability into every aspect of their operations. With strong leadership and a focus on collective action, we can meet the challenge of the climate crisis and create a more resilient, sustainable future for all.
Learn more about Cogo’s tools for sustainable business transformation, here.