The three lines of action

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

The three aspects of the long-term

In this context, there is a very wide range of ESG practices, though they all share certain aspects: the importance of informing and training, formulating a strategy, agreeing on an approach, developing skills, building an organisation and managerial practices, and developing tools and methods. There are also various contingency factors, such as the nature of the activities or the sphere of regulatory requirements and organisational culture. Three perspectives emerge from the research carried out and, far from clashing with each other, these different approaches reflect a long-term process:

The sustainable company seeks to assess its impact in view of achieving (carbon) neutrality, i.e. change its practices and eliminate the negative externalities associated with its activities. The degree of ambition can be assessed using SCOPE 1, 2 and 3 categories, which integrate a company’s more or less complex ecosystem.
The contributive company is committed to transforming its economic models so as to foster ways of consuming its products and services that reduce or preserve resources and innovate across the extended value chain.
The regenerative company describes firms that are rethinking their raison d’être and mission to build a new relationship with the world and work with their stakeholders, assessing their performance through a positive, holistic contribution.

Goal

Carbon neutrality and offsetting

Value creation and positive impact

Purpose “serving the living world”.

How

Identifying solutions to reduce negative externalities

Redefining economic models

New activities and an ESG model that repairs and regenerates conditions for living things

Challenges

Diagnostic capacity, data, integrated reporting, methodology, resources, skills, governance, agility, culture and representations

A long-term societal vision, strategy and investment, (sector) leadership, collaboration and the transformation of ecosystems, R&D and innovation

A mission, a new paradigm, an “alliance” with the living world/positive nature, common goods, an ecosystemic vision

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The sustainable company is based on three pillars: social inclusion (the social aspect), environmental protection (the ecological aspect) and economic growth (the economic aspect) (Elkington, 1997), which are generally represented by a Venn diagram. A company becomes sustainable when it lies at the intersection of these three circles, and is then defined as equitable, bearable and viable.
The contributive company aims to transform economic models and move away from the practices of a “linear” economy. It can draw on the principles of the circular economy to drive a more systemic industrial approach. The transformation to a circular economic model creates opportunities to “do things differently” and involves a change for the stakeholders – i.e. businesses and citizens – in the way they relate to the world in order to meet social challenges.
The regenerative company acknowledges our responsibility in the Anthropocene era. It is a paradigm shift that questions the vision of the world conveyed by the political, institutional and educational spheres. The concept of regeneration promotes a win-win model for the individual, the community and the planet.

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The transformation to a circular economic model creates opportunities to do things differently and involves a change in the way stakeholders relate to the world.

Fabien Seraidarian, SKEMA Business School