{"id":30096,"date":"2021-01-26T18:49:55","date_gmt":"2021-01-26T16:49:55","guid":{"rendered":"https:\/\/www.euruni.edu\/blog\/?p=30096"},"modified":"2021-07-27T13:03:03","modified_gmt":"2021-07-27T11:03:03","slug":"paul-polman-imagine","status":"publish","type":"post","link":"https:\/\/www.euruni.edu\/blog\/paul-polman-imagine\/","title":{"rendered":"“The crisis we have is a crisis of moral leadership” – Paul Polman, Co-Founder & Chair at IMAGINE"},"content":{"rendered":"\r\n

Visionary business leader Paul Polman<\/a> joined us for a rousing Learning From Leaders\u2019 conference in January 2021. Former CEO of Unilever, Paul is co-founder and Chair of IMAGINE<\/a> whose mission is to support business leaders to build a sustainable future. In a fascinating interview with Peter Vanham, author of \u201cBefore I Was CEO\u201d, Paul discussed his business philosophy and shared advice for budding business leaders. He urged everyone to work for future generations by adopting sustainable practices<\/a> and by taking on board the United Nation\u2019s 17 Sustainable Development Goals (SDGs), which offer plentiful business opportunities.<\/p>\r\n\r\n\r\n\r\n

Here we\u2019ve distilled some of Paul\u2019s most pertinent insights, shared with the EU Business School community at this prestigious virtual event.<\/p>\r\n\r\n\r\n\r\n

Taking the Time to Reflect<\/strong><\/h2>\r\n\r\n\r\n\r\n

An unshakable optimist, Paul acknowledged the challenges of 2020 but also described the benefits of having had the past year to reflect: \u201cWhen you push the pause button on a computer everything stops, but when you push the pause button on a human being, I think everything begins\u201d, he said. 2020 provided humanity with a lot of time to reflect<\/strong>. Paul commented: \u201cAs a race, we are not really on the ball. We were not making the changes fast enough; we were debating, discussing, but we lacked the individual and collective courage to really do what was right \u2013 to attack the burning issues of climate change and inequality.\u201d He continued: \u201cI think 2020 has been a good year because it made a lot of people realize the inter-relationships between biodiversity, human health and climate.\u201d<\/p>\r\n\r\n\r\n\r\n

Although the pandemic has caused considerable suffering, there are some positive effects as well: \u201c2020 has given us a good opportunity to increase the collective and individual level of consciousness and also to start thinking differently about how we should be moving forward\u201d, Paul noted.<\/p>\r\n\r\n\r\n\r\n

The Need for a Marshall Plan for the Planet<\/strong><\/h2>\r\n\r\n\r\n\r\n

As 2021 begins without the reset for which we all longed, it\u2019s clear that we must learn to live with coronavirus. What\u2019s more, despite the $15 trillion spent on stabilizing the economies of developed countries around the world, 20-30% of SMEs are still at risk of going out of business. The pandemic caused 86 million people to fall back into poverty, and the World Food Program has calculated that 265 million people now face acute food security issues. 500 million jobs have been lost around the world according to the International Labor Organization. Rising unemployment has further exacerbated inequality and disproportionately affected women and young people. These challenges seem unsurmountable.<\/p>\r\n\r\n\r\n\r\n

However, Mr. Polman remained optimistic and offered a constructive approach to building a better future: \u201cA lot of things are broken that we cannot solve by trying to change it within the current system, and sometimes you need to break more things to rebuild it back better.\u201d And, he pointed out, \u201cThe cost of inaction is going to be higher than the cost of action.\u201d After WWII, the U.S.A. developed the Marshall Plan to foster growth and job creation in war-ravaged countries around the globe. Now, Paul argues, \u201cWe need to have a \u2018Marshall Plan\u2019 to redesign our economic system. We need to do this collectively at a global level \u2013 we cannot solve these issues at a local or individual level. And that means we need to attack without hesitation the transition to a greener economy; we need to start investing in protecting our biodiversity; we need to take care of our emerging markets and have financial markets become again servants to the real economy, instead of, as many people would argue, the real economy being subservient to the financial markets<\/strong>.\u201d According to Paul, \u201cWith a relatively modest investment of just 1-2% GDP we can decarbonize our global economies,\u201d a humble sum when compared to the cost of tackling disasters caused by climate change. As Vice Chair of the U.N. Global Compact, it goes without saying that he knows what he is talking about.<\/p>\r\n\r\n\r\n\r\n

Actions Being Taken to Address Climate Change<\/strong><\/h2>\r\n\r\n\r\n\r\n

Thankfully, momentum is building in the global fight against climate change. China has committed to net zero carbon emissions by 2060, a major milestone for one of the world\u2019s most polluting countries. The European Green Deal has committed the EU to net zero emissions of greenhouse gases by 2050; Japan and Korea have followed suit; and 70% of the G7 have also made net zero commitments, most of which are for 2050. Finally, at the time of the conference, President-elect Joe Biden had just promised to rejoin the Paris Agreement. Moving forward, he said, the U.S.A. will play a more leading role in combating climate change.<\/p>\r\n\r\n\r\n\r\n

2021, Mr. Polman said, will be a year of action<\/strong>. The U.N. Biodiversity Conference takes place in Kunming, China; the U.N. Climate Change Conference, known as COP26, is being held in Glasgow, Scotland; and the U.N. Food Systems Summit and Tokyo Nutrition for Growth Summit will also take place this year. It is not too late to make change, as long as we act with speed.<\/p>\r\n\r\n\r\n\r\n

The Role of Business in Building a Sustainable Future<\/strong><\/h2>\r\n\r\n\r\n\r\n

Paul Polman believes that businesses must play an essential part in creating a better, more sustainable and equal world for us all to inhabit: \u201cBusinesses have a key role to play because they are the first ones who will suffer the effects of societies not functioning. Business cannot succeed in societies that fail.\u201d<\/p>\r\n\r\n\r\n\r\n

According to Paul, \u201cEvery business needs first and foremost to realize why they are here \u2013 that they are here to solve problems in society [\u2026] If a business cannot say what they do positively to make this a better world, why would we keep these businesses around?\u201d He described the necessary transition from CSR or corporate social responsibility, which is essentially \u201cbeing less bad\u201d, to RSC \u2013 responsible social corporations<\/strong>. He also pointed out that consumers, especially the young generation, expect responsible sustainable practices from business and that greenwashing is no longer an option.<\/p>\r\n\r\n\r\n\r\n

\"Paul<\/figure>\r\n\r\n\r\n\r\n

What\u2019s more, 90% of the U.N.\u2019s Sustainable Development Goals require businesses to act in order to succeed. \u201cBusinesses that understand that will do very well,\u201d Paul explained; the Business & Sustainable Development Commission has calculated that the SDGs offer $12 trillion worth of opportunities and have the potential to create 380 million jobs. \u201cIt\u2019s probably the best business plan we have at a time when everyone is looking for opportunities and growth.\u201d<\/p>\r\n\r\n\r\n\r\n

Arguments For a Circular Economy<\/strong><\/h2>\r\n\r\n\r\n\r\n

A circular economy offers a responsible and sustainable way to create growth. Given that last year Earth Overshoot Day was August 22, and, in Paul\u2019s words, \u201cafter that date every day we are stealing from future generations,\u201d it is essential to reform our systems to sustain healthy people and a healthy planet. Currently, only 9% of what we produce is reused, which means an astonishing 91% is discarded. It\u2019s a completely unsustainable system. Instead, Paul advised, \u201cwe need to think regeneratively.\u201d<\/p>\r\n\r\n\r\n\r\n

As an example of how a regenerative circular system can be implemented, Paul explained some of the work IMAGINE is doing to transform food production systems in collaboration with the top 28 food companies globally. Food production currently causes deforestation, tremendous waste, uses chemical pesticides and, ultimately, causes about 20% of global warming. But our food systems should be part of the solution, not the cause, Paul believes. Which is why they are supporting these top companies to transition, collectively, to regenerative agriculture. The first step is to create a pre-competitive space where they can come together to talk about their contribution to securing the future of humanity<\/strong>. The issue is too big for any one company to make meaningful change alone. Secondly, it\u2019s important to agree definitions and put together measures that lay out exactly what they need to achieve. With regenerative agriculture, key performance indicators could include soil health, carbon capture, the restoration of nature and the wellbeing of farmers. This creates a framework for the companies involved to start taking action and to hold themselves \u2013 and each other \u2013 accountable. And, Paul believes, working in this way is good business sense as well. With regenerative agriculture, for example, carbon is sequestered from the atmosphere, which helps to solve the problem of climate change. But at the same time, this makes the soil healthier, increases yield, enables farmers to sell carbon credits which can in turn solve smallholder farmer\u2019s livelihood issues \u2013 it is a win-win solution with wellbeing, planetary and economic benefits.<\/p>\r\n\r\n\r\n\r\n

As Paul summarized: \u201cCompanies that have decarbonized already, that have disclosed their risks, that have plans in line with the Paris Agreement that are science-based\u00a0 they tend to be more profitable. They have taken risks out of the system, they have identified opportunities, and all of this then starts to make business sense.\u201d<\/p>\r\n\r\n\r\n\r\n

A Visionary Business Leader<\/strong><\/h2>\r\n\r\n\r\n\r\n

Paul Polman has been described by the Financial Times as “a standout CEO of the past decade\u201d, and by himself and others as an \u201cactivist CEO\u201d. There is no question that his belief in business as inseparable from the moral responsibility we have towards each other and towards the planet is visionary.<\/p>\r\n\r\n\r\n\r\n

Paul commented: \u201cI have always believed that any system where too many people feel they are not participating or are being left behind will ultimately rebel against itself; you cannot make a world function if you don\u2019t live in harmony with fellow human beings and in harmony with human nature.\u201d \u201cI feel that my task is to fight for the underrepresented, the people who can\u2019t be at the table. There are still too many of them and I\u2019ve always believed that.\u201d<\/p>\r\n\r\n\r\n\r\n

As a CEO, he feels it is his obligation to take actions in the service of others. Which is one reason for being against the Milton Friedman business philosophy of shareholder primacy which has, he commented, \u201cproven over and over again not to be a good strategy.\u201d Business decisions should not be based solely on profit but guided by the company\u2019s values and purpose.<\/p>\r\n\r\n\r\n\r\n

However, Paul recognizes that his approach is still fairly unique. He said, \u201cthe crisis that we have is not really a crisis of climate change or inequality, it\u2019s a crisis of moral leadership where people have increasingly put the interests of themselves ahead of the common good<\/strong>.\u201d Coronavirus was not a surprise, he remarked: \u201cwe have destroyed nature too much for too long\u201d, and zoonotic diseases are an inevitable consequence of that. But, he said, \u201cthe real black swan<\/a> was our lack of ability to collectively rise to the challenge.\u201d<\/p>\r\n\r\n\r\n\r\n

Paul continued: \u201cWe live in a world where adults behave like children and the children behave like adults\u201d. As 50% of the world population is below the age of 35, \u201cI would argue it is time we give them the table\u201d, rather than just a seat at it. \u201cThe main challenge is we need a different kind of leader\u201d, Paul reflected. At the moment, CEO turnover is going up \u2013 40% of companies have had three or more CEOs in the last 10 years and over 50% have had to appoint an emergency CEO. Not only this, but only 7% of boards are climate competent and only 1% include minority candidates, with women also underrepresented. \u201cWe have to invest in the right leaders. We have to reinvent the way we teach people what leadership is<\/a>.\u201d<\/p>\r\n\r\n\r\n\r\n

Advice for a Prosperous and Fulfilling Career<\/strong><\/h2>\r\n\r\n\r\n\r\n

To become a brilliant leader, it is necessary to build a fulfilling career. Paul offered his advice for how to get there:<\/p>\r\n\r\n\r\n\r\n

    \r\n
  1. Find out what you are passionate about.<\/strong><\/li>\r\n
  2. Discover what you are good at.<\/strong><\/li>\r\n
  3. Understand what the world needs.<\/strong><\/li>\r\n
  4. Look at that intersection to see what opportunities are available.<\/strong><\/li>\r\n
  5. Decide if you want to do something yourself or work with others already focused on that intersection.<\/strong><\/li>\r\n
  6. If you choose to collaborate with other people or businesses, make sure your values are aligned.<\/strong><\/li>\r\n<\/ol>\r\n\r\n\r\n\r\n

    By following these steps, you will be able to unlock a tremendous amount of energy, Paul assured the audience, and that will lead to success.<\/p>\r\n\r\n\r\n\r\n

    He also warned attendees at the conference that, \u201cmany people define themselves by their net worth or their titles or the power they have, but this is not a world anymore of formal authority, it is a world of moral authority.\u201d Above all, instead of seeking to be above others and to criticize difference \u2013 whether that\u2019s cultural, age, rank, gender and so on \u2013 \u201cwe should try to understand and seek common ground.\u201d<\/p>\r\n\r\n\r\n\r\n

    Only 5% of the world\u2019s population have access to such luxuries as soap, an inside bathroom, sufficient food and free education, luxuries that give them the attendant opportunities of health and prosperity \u2013 the choice of where and how to live and work. So, Paul said, \u201cif you win the lottery ticket of life it is your obligation to put yourself in the service of others\u201d. But this is not an entirely selfless act, because \u201cthe more you are able to give, the more you will receive, the better you will feel and the better you will do.\u201d<\/p>\r\n\r\n\r\n\r\n

    Paul\u2019s closing statement was an inspiring call to action for professionals and future leaders, like EU\u2019s students and alumni, to rise to the challenge of making a better world for us all to inhabit: \u201cIt needs all of us to rise to the true level of leadership, putting yourself in the service of others, feeling uncomfortable, operating with a high level of humility and humanity where words like empathy and compassion are going to rule [\u2026] Living your purpose is the most important thing. Do that with passion and along the way maintain a positive attitude. [\u2026] It is always better to be an optimist because at least you will have a nicer life!\u201d<\/p>\r\n\r\n\r\n\r\n

    Learn To Lead From The Best<\/strong><\/h2>\r\n\r\n\r\n\r\n

    At EU Business School, our pragmatic approach prioritizes opportunities for students to interact with and learn from leaders and experts at the cutting edge, preparing them with the tools and mindset they need to thrive in an ever-changing business landscape.<\/p>\r\n\r\n\r\n\r\n

    \"eu<\/a><\/figure>\r\n","protected":false},"excerpt":{"rendered":"

    Visionary business leader Paul Polman joined us for a rousing Learning From Leaders\u2019 conference in January 2021. Former CEO of Unilever, Paul is co-founder and Chair of IMAGINE whose mission is to support business leaders to build a sustainable future. In a fascinating interview with Peter Vanham, author of \u201cBefore I Was CEO\u201d, Paul discussed his business philosophy and shared advice for budding business leaders. He urged everyone to work for future generations by adopting sustainable practices and by taking on board the United Nation\u2019s 17 Sustainable Development Goals (SDGs), which offer plentiful business opportunities. 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