There are brilliant, committed sustainability professionals working hard inside, or with, some of the most insidious and damaging businesses. Can we turn them into low-carbon, equitable and just institutions working for noble purposes? Or is the best we can do to make them a little less awful? Before we begin working with a business that is in the 'bad' zone, how can we know?

You may have read Tariq Fancy's recent searing critique of responsible investing. Fancy was Blackrock's global Chief Investment Officer for Sustainable Investing, and he sees the field as a 'dangerous placebo'. His critique has been criticised in turn, e.g. here. But he said something this week (4th November) which stood out for me: "The simplest thing is to run a test that if this company doubles in size, is it good or bad for the world? Well, if it’s an electric vehicle maker it’s probably good for the world … and if Exxon Mobile doubles in size, it’s probably not good for the world."

As a rough rule of thumb, it's hard to beat.

Look to your values (or prejudices)

I recently discovered that I'm not willing to work with businesses which are primarily based on gambling. I probably wouldn't have realised until the opportunity came knocking, but my gut told me that the work wasn't for me. Other sectors I know I'm not the right person for include new nuclear, defence/weapons manufacture, tobacco, porn and mining / minerals extraction (including fossil fuels). (I have helped companies which retail fossil fuels, but are actively planning low-carbon transition, to hear from their stakeholders.) Some of this is probably down to my Quaker education - the strong non-conformist tradition which led the Cadbury, Barclay and Fry families to eschew making weapons and turn to, ahem, chocolate and banking instead. No-one's perfect. And your values and prejudices will be different to mine.

Which businesses need to change the most?

You may recognise that you have instinctive pull towards or aversion to particular sectors. It's worth bringing these often subconscious feelings to conscious attention so that you can check whether they stand up to scrutiny. Because it's also true that the 'worst' businesses are the ones which need to change the most. The outcome of that change may be 'cease to exist', but it could be reinvention as a business which plays a full and effective role in building the low-carbon, just future we need.

How can we tell?

Here are some clues:

Could this business meet the same needs it meets for society today, in a sustainable way? Can it change from supplying fossil fuels to supplying energy services? Can it change from making its money through gambling, to making it through more innocent games? Are there signs that it intends to make this change? Is it plausible that it could make this change, and make it fast enough?
Where is it spending its own money, and the money it gets in from investors? What does it say to its investors and shareholders about where it expects future revenues to come from? If the more sustainable products and services are only getting a tiny percentage of that investment, or are seen as a niche income stream, then change is unlikely to be a pushover.
What does it say to politicians and regulators about how it wants the sector to be supported in its transition to sustainability (or does it lobby against transition or for delays)? There are information sources which aggregate spending on lobbying, like this database of US lobbying and this one relating to the EU. They includes the issues that companies and lobbyist consultancies are interested in, although not their specific positions or requests. On climate specifically, InfluenceMap produces information on the lobbying undertaken by corporates.
What's in its strategy? CSR and sustainability reports can tell you a certain amount, but does its mainstream or core strategy take it closer to, or further away from, sustainability?
What is the senior leadership saying about sustainability, to investors, peers and each other? When they think the sustainability people aren't listening, what do they say? It may be hard to find out, but take a look at financial and investment media, rather than sustainability outlets, and look for articles which weren't triggered by sustainability-related announcements. Do their statements ring true?

If the signs aren't good, perhaps it can't change enough to deserve its place in a sustainable society, and our talents and energy are better used elsewhere - including helping there to be a 'just transition' for their employees and supply chain.

Making the Path by Walking

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