Companies facing the challenges of the Anthropocene

ESG, with its response to the climate crisis, is gaining increasing visibility in the media. In the Anthropocene era, the environment has already been a global issue for over 20 years as regards preserving the planet and sustaining living conditions for humanity. However, scientific reasoning and the IPCC’s reports need to be shored up by a narrative that initiates action. Politicians play their role in talking about environmental issues and guiding public policies, but businesses have a responsibility to “change the game”. This is where we are. Social concerns and governance issues are now being addressed as well as environmental protection. While the economic sphere has come adrift from society, ESG gives new meaning, and helps the community-spirited employee come to the fore.

Companies are showing their willingness to act, though a gap still persists between awareness, commitment and effective action. Because beyond rolling out practices that make good sense, tackling the challenges raised by the ESG approach can soon become complex and involve the ecosystem. Several salient points emerged from our interviews with various highly knowledgeable figures. ESG procedures require time, acculturation and training tools, and come about through learning loops. To eliminate negative externalities and target carbon neutrality, new skills, tools and investment are needed to take action and meet the challenges, as well as innovative technical and technological solutions.

This study illustrates the determination to shape sustainable businesses through a wide range of practices, where the priority is achieving carbon neutrality. But far beyond that, the goal is to turn firms into “contributive companies” that demonstrate their positive impact, and this means rethinking the old economic models. ESG then becomes a virtuous process designed to turn organisations into regenerative businesses in symbiosis with the living world. Though a long road is involved, this collective determination gives companies meaning and helps them develop their purpose and mission. At a time when geopolitical issues weigh heavily on global stability, this new awareness and commitment to ESG initiatives is highly welcome in businesses.

We have moved into a new age. Enjoy your read!

Pascale Viala
Vice-Dean and Director of the Corporate Office,
SKEMA Business School

Fabien Seraidarian
Director of Knowledge Transfer and of SKEMA Global Executive MBA,
SKEMA Business School