Five tips for sustainable entrepreneurship

Tips 4 min.

Wouter Scheepens studied Dutch Law at Tilburg University, but opted for a career in a different direction. After having worked for a bank, he has been active for the past 25 years in the field of sustainable entrepreneurship. He is a founding partner of consultancy agency Steward Redqueen. The agency has offices in Amsterdam, Singapore, and Washington DC. With his mission of “making business work for society”, Wouter advises financial institutions and multinationals but also non-profit organizations. Since May 2023 he has been executive director at MVO Nederland, a corporate network for sustainable entrepreneurs. He wrote Duurzaamheid in de boardroom (‘Sustainability in the Boardroom’), among other things, and lectures on the subject in the Commissioner and Supervisor Programs at TIAS and Ebbinge.

Tip 1: Look at your enterprise from a social perspective to identify new risks and opportunities

“You won’t notice it until you get it” is a famous quote by Johan Cruijff that is also relevant with respect to making a business more sustainable. It is an inevitable fact that we are moving towards a climate-neutral, circular, and inclusive economy. An entrepreneur takes charge and does not wait until the ship has almost sailed. Looking at your enterprise from a social perspective will give you a different picture of new business models and avoidable risks. Of course this process will have its challenges and dilemmas, but relying on the routines of the past will stand in the way of making your business future-proof. Take your time in the boardroom to fully understand this.

You do not have to change everything at once: you don’t have to start a revolution

Tip 2: Make a smart plan, and implement sound governance and controls

The sustainability transition is still subject to the laws and customs of our present economic system. World-changing ideas are fine, but if you want to realize them in your enterprise, your plan must support financial viability and competitive strength. You do not have to change everything at once: you don’t have to start a revolution. What you do need to get in order is governance and controls. There are plenty of examples of companies that went under because their business plans for sustainability fell short from a financial-economic perspective or in terms of governance . So think big, but work smart. Keep your eye on the ball and adjust where necessary.

Tip 3: Be open to resistance. Listen carefully but move forward boldly

An ambitious CEO of a large company once told me that most resistance came from within his own organization. He observed that many workers were happy with the existing conditions because tidy profits were being achieved. “We do not believe in those new products you are proposing. That is simply beyond us.” So, as a CEO, you need to really believe that your vision is the right one and to not let cold feet or predictable opposition hold you back. Of course you take criticism seriously and you want to avoid being overbearing. But if you do not move boldly forward, it is unlikely that your great plans will get beyond the drawing board.

Making the economy more sustainable also requires a facilitating playing field

Tip 4: Accept that it is a complex process and build a culture of continuous improvement

Fundamental change, i.e., the transition towards climate-neutral, circular, and inclusive entrepreneurship, is a complex and demanding process. You need to experiment, get chain partners on board, and scale up. Something will inevitably go wrong. You may fail and have to try again. That is part of the process. There should be scope for making mistakes in the boardroom, and new experiments should be facilitated. A culture of learning and of continuous improvement is essential. The ‘tone at the top’ is crucial. Are you leading by example in your company?

Tip 5: Collaborate, make alliances, and establish partnerships

Making the economy more sustainable also requires a facilitating playing field. By joining forces with other companies, knowledge partners, and other stakeholders, it is easier to make a stand against relevant stakeholders. You must work together to help the government see how it can make optimal use of its tools of norms, pricing, and subsidies. Making sure, for example, that circular business models are viable in what is still a linear economy requires joint action. Becoming a partner of MVO Nederland will give you the thrust of a movement of 2000 enterprises that is committed to the new economy. So join us!

Finally: nothing at all about on reporting and the challenges of the EU’s requirements set out in the Corporate Sustainability Reporting Directive? Of course these rules are also relevant for directors and commissioners. But reporting should be seen as the culmination of the sustainability effort. It shows what the organization is doing and what its plans are. It is a means in the transition process to becoming a sustainable business; it is not an end in itself. So concentrate on making a difference in the market and to be successful in a way that provides positive social impact. If that is your focus, reporting will prove to be a useful tool, and not hard at all. However, if you see the reporting as the be all and end all of your enterprise, you may get bogged down in a bureaucratic framework that drains your energy and distracts you from what really matters.