No Market, No Mojo: The Truth About Driving Sustainability
Ah, consulting. Nearly two years in, and I’ve come to learn it’s a mix of being a detective, a therapist, and, occasionally, a magician. My specialty? Sustainability—a world where market incentives and corporate commitments set the pace for who plays and who watches from the sidelines. The deeper I dive, the clearer it becomes: market incentives drive sustainability work more than good intentions ever will.
Take the work we do at Seafood Ninja. Our clients include seafood suppliers and producers, and the ones selling to retailers or food service giants (the kind with glossy environmental, social responsibility, and climate commitments) tend to double down on their sustainability programs. Why? Because they have to—it’s a cost of doing business with these big players.
On the flip side, there are those suppliers who want to access these retail markets but haven’t quite made it in yet. Many of them sign up for sustainability programs in the hope it’ll get them a golden ticket to those retail shelves. But if they hit a wall—let’s say they can’t crack the market or only get limited access—they often drop out. Why? They’re not seeing the return on investment. Without that carrot dangling in front of them, why pour resources into human rights due diligence or climate initiatives when those resources are already stretched thin?
This trend underscores an uncomfortable truth: unless it’s required, companies are more reactive than proactive.
Without market incentives, they’re less likely to engage in meaningful, impactful sustainability work.
So, how do we fix this? How do we get companies on board when the market incentive isn’t readily available?
Here are a few ideas worth exploring:
- Create Alternative Incentives: If market incentives aren’t present, can we create other types of incentives? Think grants, certifications, or partnerships that lower the cost or risk of investing in sustainability.
- Leverage Peer Pressure: Public recognition can work wonders. What if we celebrated companies that lead the way in sustainability—even those without retail ties? Highlighting these trailblazers can create FOMO (fear of missing out) for others in the industry.
- Policy as a Push: Regulatory frameworks can act as the nudge companies need. If market incentives are missing, government policies can fill the gap by setting minimum standards everyone has to meet.
- Educate on the Long Game: Sometimes, companies fail to see the long-term value of sustainability investments—like future-proofing their business or staying ahead of eventual regulations. Making the case for sustainability as a competitive advantage could sway hesitant players.
- Collaborate on Collective Benefits: Sustainability programs often has spillover effects. For example, investing in human rights due diligence or reducing carbon footprints can benefit entire industries. Industry-wide collaborations or co-investments could make sustainability efforts more accessible and appealing.
Ultimately, sustainability work is a marathon, not a sprint. And while market incentives are powerful, they’re not the only way to move the needle. The challenge is to think creatively about what drives companies to act and how we can align their priorities with the greater good—whether or not there’s a retailer watching.