The Grey in the Green

The human eye can see more shades of green than any other colour. So too, it seems, can those that address sustainability.

Take sustainable finance. You’ve probably noticed not all ‘green’ bonds are viewed through the same lens. There’s ‘dark green’, ‘light green’ and ‘brown’ issuances. 

And then there’s the European Union’s sustainable finance taxonomy. Reports in early January suggested natural gas and nuclear power would qualify as ‘green’ projects so long as they met certain criteria. The proposal was greeted with a mixture of understanding, outrage and head-scratching from various stakeholders. Two grey areas in a green framework.

One justification for natural gas’s inclusion is it acts as a transition fuel. If you’re a country reliant on coal, gas can be used as a less polluting option. Its deployment might help movement toward a renewables-led economy. Not all necessary steps to sustainability seem green.

It’s important to have a realistic transition plan. Stakeholders may want to see immediate results but change happens in the slow daily grind. Better to think about long-term good than pursue half-hearted measures today to silence critics.

Have conviction in your ultimate goals and the route you’ve chosen to get there. While some criticism and confusion may be unavoidable on the long road to sustainability, explain why you’ve chosen this path. Explain why these strategies are sustainable choices for your business now.

And then, of course, deliver. Transitions are temporary and not an excuse to enforce the status quo with prolonged business-as-usual. A much more interesting opportunity awaits.