Miniseries of knowledge nuggets on Positive impact
The first knowledge nugget goes
‘Beyond sustainability: Getting fit for regeneration’
Curious, read more and listen to interview bites with
Anna Yona, Co-founder and CEO of Wildling Shoes
Diversity Equity Inclusion: Progress amid challenges
Explore more in the 2nd knowledge nugget and listen to interview bites with
Katharina Kurz, co-founder and directrice BRLO, D-Berlin
Anna Yona, co-founder and directrice Wildling Shoes, D-Engelskirchen
Verena Roos, 1st chairwoman Business Professional Women Club, D-Saarbrücken
Co-creation: A mindset towards innovation
Curious, read more in the 3rd knowledge nugget and watch interview bites with
Katharina Kurz, co-founder and directrice BRLO, D-Berlin
Anna Yona, co-founder and directrice Wildling Shoes, D-Engelskirchen
Andrea Hohlweck, OrganisationsberatungI Coaching, D-Saarbrücken
From Leadership role to Leadership work: A paradigm shift in leadership and organizational development to navigate complexity and transformation
For more, explore the 4th knowledge nugget and watch interview bites with
Andrea Hohlweck, OrganisationsberatungI Coaching, D-Saarbrücken
Financing the future: From short-term profit to long-term positive impact creation: Why reforming the financial, monetary and banking system matters
Explore, why it starts with you in the 5th knowledge nugget and watch an interview introduction about a ‘no venture capital case’ with
Katharina Kurz, co-founder and directrice of BRLO, D-Berlin
Impact Measurement and Management in complex context: From ‚data as an end‘ for compliance reporting to ‚data as a means‘ for informed action to change. But how to tell if organizations, sectors, ecosystmes truly making an impact or simply talking the talk? Are you a first mover stepping forward?
Data- and AI driven approach to creating positive impact: essential but far from being automatic, ethical, safe and trustworthy: Can we trust the approach for critical decisions and processes in business context and beyond? The last knowledge nugget highlights why there is definitely room for advancement.
PREVIEW
AUTUMN 2024
The world is changing - with or without us
In times of uncertainties natural human reaction is to stick to the well-known
BUT
Most pressing challenges are complex, global and mostly intertwined. They can only be addressed through positive impact creation in a collaborative effort, leveraging collective power and resources.
After the Ah! miniseries on navigating BANI times in an innovative, analytical and empathetic way, the new miniseries addresses hidden barriers and underlying dynamics to positive impact creation and explores what each of us can do
by asking two basic questions:
- What keeps economic and financial priorities, environmental sustainability and social responsibility separate?
- What pivotal shifts are needed?
Tomorrows roles and responsibilites of stakeholders are defined by our todays visions and actions
Aren’t we all stakeholders in this effort?
Read more about and listen to pressing questions, insights and takeaways, relevant not only in your professional context,
after the summerbreak 2024
and
grab food for thoughts before the summer break
The world is changing - with or without us
The tech transformation comes with a transformative force perceived as fast and disruptive.
The environmental and social transformation force is as transformative but we still pay not enough meaningful attention and action toward creating positive impact.
However, many of us are sensing that pivotal shifts are required but economic and financial considerations still take precedence over environmental sustanaibility and social responsibility.
BUT
What are the most pressing challenges driven by the environmental and social transformation ?
The agenda 2030 summarizes 17 Global Sustainable Goals -mostly intertwined- issued by the UN in 2015:
Current status reports on sustainable goals (UN SDG Progress Report 2023, UN Sustainable Development Goals, UN DESA Publications UNSD), groundbreaking AI development and crucial elections in major economies in 2024 reinforce the urgency for action.
Achieving these goals requires more than incremental improvements—it needs systemic, regenerative changes!
Climate change and environmental sustainability
Six of the nine planetary boundaries are already transgressed.
Overall, Earth was about 1.36 degrees Celsius warmer in 2023 than in the late 19th-century (1850-1900) preindustrial average, with projections indicating the possibility of reaching or surpassing the critical 1.5°C tipping point by 2035 (UN DESA PUBLICATIONS, UNSD) .
No poverty and zero hunger
The number of people living in extreme poverty increased, with 575 million people projected to remain in extreme poverty by 2030.
Food insecurity has worsened, with nearly 2.3 billion people experiencing moderate or severe food insecurity in 2021. The impacts of climate change and conflict have exacerbated the situation
Good health and well-being
COVID-19 pandemic, disasters and armed conflicts disrupted health services, leading to setbacks in many areas and regions.
Quality education
Education has been severely impacted by the pandemic, with 84 million children and young people projected to remain out of school by 2030. Investment in digital education infrastructure is crucial.
Gender equality
Significant gender disparities remain. As of 2022, 56% of countries lacked laws prohibiting discrimination against women, and gender-based violence persists globally.
Clean water and sanitation
Progress has been made, with 687 million more people gaining access to safely managed drinking water between 2015 and 2022. However, challenges remain in ensuring universal access.
Justice and human rights
Conflict, violence and lack of access to justice remain significant barriers. Issues such as discrimination and lack of access to justice are pervasive in many societies.
Affordable and clean energy
Access to electricity has improved, reaching 91% globally by 2021. Renewable energy capacity has also seen growth, particularly in developing countries.
Urbanization and Infrastructure
Urbanization continues to outpace efforts to improve living conditions, with nearly 1.1 billion people living in slums as of 2020.
Investment in sustainable infrastructure is urgently needed.
Responsible consumption and production
Responsible consumption and production patterns are not advancing rapidly enough. Efforts to reduce waste and promote recycling need to be intensified
Industry and Innovation
Medium-high and high-technology industries have shown robust growth despite a global slowdown.
Reduced inequality
Inequalities within and among countries persist. Efforts to reduce inequality have been hindered by economic disparities and lack of social protection in many regions.
Sustainable Cities, communities and social cohesion
Global Crises have local impacts, i.e. are threats to social cohesion. How cities and communities act toward social stability and collective well-being is getting more important.
Digital Inclusion
In the digital age, access to technology and the internet is essential for education, economic opportunities, and social connectivity. 5.35 bn out of 8 bn, i.e. around 66% of the world's population, have access to the internet, 75% of people aged 15 to 24 have access to the internet across the world according to Statista (Mar 2024)
Decent work and economic growth
The global economy is struggling due to various crises, including the COVID-19 pandemic and geopolitical conflicts. Youth unemployment and informal employment remain high.
The International Labour Organisation (ILO) expects global unemployment at 4,9% in 2024, but slow progress to reduce inequalities and poverty is “worrying”.
Women are disproportionally affected by lacking job opportunities and tend to earn far less than men.
The number of workers in informal employment has grown from approximately 1.7 billion in 2005 to 2.0 billion in 2024.
Life on land
Biodiversity loss continues at an alarming rate, driven by habitat destruction, climate change, and pollution. Conservation efforts need to be scaled up significantly
Life below water
Marine ecosystems are under severe threat from pollution, overfishing, and climate change. Protecting marine biodiversity requires more robust international cooperation
Positive impact goes beyond sustainable value
It encompasses the effects of strategies, actions, initiatives, policies and projects that aim to create meaningful and regenerative benefits for the climate, environment and societies as a whole.
What are key components defining positive impact?
Sustainability and beyond
ensures that positive impact is long-lasting, resilient and continue to benefit future generations, the climate and environment. Impact-driven organizations move from net-zero (reduction of food print) to net-positive (increasing environmental and social hand print) with regenerative visions, -strategies, - business models and - processes.
Stakeholder engagement
Positive impact creation involves the active participation and engagement of all stakeholders, i.e. beyond shareholders.This ensures that actions are meaningful, appropriate and supported.
Equity I Diversity I Inclusion
Positive impact aims to address inequalities, diversity and inclusion focusing on creating equitable opportunities and access to resources for all members of society.
Systemic change
Beyond immediate benefits, positive impact actions often seek to address root causes and bring about systemic changes. This involves transforming visions, strategies, business models, products, processes and services, policies, practices, and structures that perpetuate climate, environmental and social issues.
Innovation and scalability
Positive impact creation can involve innovative solutions and approaches to challenges. Successful actions are often scalable, allowing them to be expanded or replicated to benefit a larger environment and/or population.
Measurable outcomes
The effectiveness is assessed through evaluating tangible benefits and changes that result from specific actions, such as increased literacy rates, reduced poverty levels, improved health indicators or enhanced environmental conditions.
Which dynamics and barriers still impede the creation of positive impact?
Economic and financial dynamics
- Concentration of power:
Economic and financial power is largely concentrated in the hands of large corporations, financial institutions, and investors with significant influence over market trends, policy decisions and resource allocation.
- Profit maximization:
The primary focus of many businesses and financial entities is on profit maximization and shareholder value. This often leads to short-term thinking and prioritization of financial returns over environmental sustainability/regreation and social responsibility.
- Access to capital:
Large corporations and established entities have easier access to capital and investment opportunities, while SMEs, social enterprises or social entrepreneurs often struggle to secure funding.
Environmental sustainability and beyond
- 2nd priority
Environmental sustainability is frequently treated as a secondary concern compared to economic and financial goals. Initiatives aimed at environmental protection and sustainability are often seen as costs rather than investments.
- Regulation driven:
Many environmental actions are driven by regulatory requirements rather than voluntary commitment. Compliance with environmental regulations is often seen as a burden rather than an opportunity for innovation.
Social responsibility
- Uneven focus
Social responsibility, including issues like equity, diversity, inclusion, and community development, is often unevenly prioritized. Companies and investors may focus on these areas when there is direct financial benefit or public pressure, but they are rarely central to business strategies.
- Corporate philanthropy driven
Positive impact is frequently addressed through corporate philanthropy and charitable contributions, which are separate from core business operations and strategies.
- Corporate Social Responsibilty peripherical to core business
Companies adopt CSR initiatives to address social and environmental concerns, but these are often peripherical to their core business strategies and maybe more about reputation managment than genuine impact.
Fragmented efforts
- Siloed approach:
Efforts to address economic, financial, environmental and social considerations are often siloed. Different departments within organizations handle these areas separately, leading to fragmented strategies and missed opportunities for holistic solutions.
- Short-term focus:
Many businesses and investors prioritize short-term gains over long-term sustainability and responsibility.
- Stakeholder misalignment:
There is frequently a misalignment of interests among stakeholders. Shareholders, consumers, employees, and communities a.o. may have conflicting priorities, making it challenging to pursue integrated positive impact.
Todays power patterns
reflect a landscape where economic and financial considerations still take precedence over environmental sustainability and social responsibility. Fragmented efforts and misalignments of stakeholders hinder the integration of positive impact creation into core business strategies and - models. Movements towards more sustainable practices are evoked. However, significant shifts in dynamics and priorities are needed to create a future with meaningful positive impact to the world.
But what if todays power patterns shift or even dissolve?
- In a future scenario where boundaries between profit-oriented core business activity, environmental sustainability and social responsibility have shifted, there is evidence to suggest significant changes in power dynamics across various stakeholders.
- Many of us are sensing that pivotal shifts are required
- This scenario fosters a more balanced distribution of power, collaboration, and mutual accountability.
- Future roles and responsibilities that are crucial for pivotal shifts and creating positive impact are defined by our todays visions and actions.
- SMEs and cooperations, NGOs, social businesses, social entrepreneurs, government agencies,investors and philanthropists, academic institutions and researchers, communities, media and communication platforms, employees, consumers, policy makers, legislators…
Aren’t we all stakeholder?
What pivotal shifts are needed to create positive impact?
From reduction in the ecological footprint (net zero) to an increase in the environmetal & societal handprint (net positive)
Net-positive companies invest in solving the world’s problems rather than creating them, cultivating strategic partnerships and innovative business prospects. Invest in people and the planet first, and the profit will come.
According to Polman and Winston, in order for businesses to achieve net positivity, they must operate under five core principles: 1I Take ownership of all impacts and consequences, intended or not. 2I Operate for the long-term benefit. 3I Create positive returns for all stakeholders. 4I Drive shareholder value as a result, not a goal. 5I Partner with competitors, civil society, and governments to drive transformative, systemic change.
From degenerative to regenerative business models
Regenerative business models aim to create a circular economy where products and services are designed to have a positive impact on the environment and society. They are built on the principles of regeneration, restoration, and renewal, rather than just targeting net-zero (=reducing the ecological foot print)
From shareholder - to stakeholder value
The stakeholder-value approach does not rely on short-term returns, but on long-term positive impact. It aims to fulfil – as far as possible – benefits for various interest groups affected by the actions.
From treating symptoms to addressing causes
Addressing causes rather than treating symptoms is a proactive approach that leads to long-term positive impact. It involves understanding and resolving the underlying issues that lead to problems, thereby preventing recurrence and promoting overall positive impact. For achieving this, systemic change and mind set change is required.
From short term profit to long term positive impact creation
Transitioning from short-term financial profit to long-term positive value creation requires a fundamental shift in business vision, - strategy, - culture, -models and operations. It involves embracing sustainability, ethical practices, and stakeholder engagement, leading to benefits that extend beyond financial profit and includes long-term positive impact for the climate, environment and societies.