IoD Scotland Autumn 2021

Putting wellbeing before profit
as we build a new economy
The Covid-19 pandemic has shown us
that when pushed, we can do impossible
things – so is the climate emergency
another time where we need to do the
‘impossible’ again and build an entirely
new economic model based on
wellbeing and balance with nature?
That was the question posed by
Dr Katherine Trebeck, co-founder of the
Wellbeing Economy Alliance, in a
conference session chaired by Louise
Macdonald, IoD Scotland national director.
Dr Trebeck described the current
economic model as “inadequate for
delivering the standard of life required
without depleting natural resources;” it
was time for a new alignment that
promoted the environment and people’s
wellbeing to the same level of profit.
The Wellbeing Economy Alliance’s
goal was to support organisations as
they challenge the hegemony and
explored new methods of working.
Advocates were transforming their
organisations by putting their
decision-making through a
‘wellbeing focus’ that looked
closely at products and practices
and questioned their impact.
Current economic models were the
victims of narrow thinking that the
climate crisis was forcing them to
challenge, and Dr Trebeck urged
delegates to build new bridges with all
stakeholders to align policies for mutual
benefit.
In a robust Q&A session that followed
delegates questioned whether the
current economic model was “broken”. It
wasn’t, said Dr Trebeck; it worked within
its current rules. Her advice,
“Do we need to reframe what
success means in business?”
Dr Katherine Trebeck
Dr Katherine
Trebeck
however, was that
those rules needed
changing, and quickly.
As she pointed out, governments
spend billions on welfare payments to
ensure citizens had a reasonable
standard of living. Wouldn’t it be better,
she asked, if the economic model
ensured everyone had that expected
standard of living at source, without
state help – and without asking the
planet to do the heavy lifting, too?
She ended with some challenges to
current thinking. Do we need to reframe
what ‘success’ means in business, and
perhaps more closely align director’s
remuneration with not only profit but the
company’s impact on the environment
and wellbeing of its employers?
The innocent approach proves that sustainable
businesses can be global success stories
Leading a business that takes the name
‘innocent’ carries a particular weight,
admitted its CEO Douglas Lamont – and
with its values and philosophy front and
centre, it was imperative the business
‘walked the walk’ on sustainability and
the environment.
The drinks company is aiming to be
Net Zero by 2030 – an ambitious goal,
given the carbon footprint of agribusinesses.
But with a new production
plant in Rotterdam based on the
strongest sustainability criteria possible,
it was an ambition the company was
determined to meet.
Douglas said there were a host of
opportunities awaiting those who built
their businesses on the pillars of
sustainability and social justice
– not least the ability to attract
committed, focused
employees who were keen
to make their own
contributions to tackling
the climate emergency.
He was a passionate
advocate of sustainable
capitalism. Innocent did not
get everything right, and he
Douglas Lamont
was happy to accept challenge from any
corner over its operations.
However, he also knew that he could
“look himself in the mirror every night
knowing his business was trying to do
the right thing.”
An example of this was the new
Rotterdam facility. It was built from the
ground up on the principles of water
reduction, eliminating carbon from
energy sources and streamlining
processes to make it as sustainable as
possible. While the construction had
been costly, it would offer payback for
years to come. “We’re in a new paradigm
in which thinking about the environment
is the new norm,” he said. “We have to
balance profit with people and
planet.”
Be good all round, he
urged. There was little
point trumpeting about
the 10 per cent of your
organisation with
positive environmental
metrics when the rest
was poor. “Avoid green
washing and be
action-orientated. It’s
not just words on a sheet
of paper; you need to
propagate change.”
His team at innocent were
“evangelical” about the business’s
sustainability criteria and were its
greatest ambassadors.
Session lead Aidan O’Caroll, Chair of
IoD Scotland, asked if the company’s
takeover by drinks giant Coca Cola had
threatened innocent’s principles.
Douglas said the takeover had reinforced
its ethos: Coca Cola “bought innocent
because of its environmental
credentials,” and remained fully
supportive “of everything we do –
including our annual donation of 10 per
cent of our profits to charity.”
“We’re in a new paradigm
in which thinking about the
environment is the norm...
we have to balance profit
with people and planet...”
Douglas Lamont
Autumn 2021
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