“Wicked Problems, No Simple Solutions” — The Challenge of Sustainability for European Businesses

As the dust settles on COP29, it’s time to reflect on the role of business in meeting climate goals, especially when many companies are revising their long-term sustainability targets as commercial realities bite.  

 Under both regulatory and revenue pressures, what’s the situation for European businesses in 2025? How should they respond? What’s their role in the energy transition? To get some answers, we spoke to Eliot Whittington, Chief Systems Change Officer at Cambridge Institute for Sustainability Leadership (CISL).    

77% of adults globally say businesses aren’t doing enough to address the world’s climate challenges.  

Businesses are leading at COP29 — but more collaboration is required 

Having attended COP15 in Copenhagen in 2009, Eliot notes governments are stuck on the same topics and “there’s a certain sense of déjà vu from the discussions 15 years ago.” He blames this on an assumption that it would be straightforward, so “they didn’t put enough time and energy into diplomacy.”  

Business, on the other hand, gives him cause for optimism. “The conversations with companies in and around the COP felt very energised, purposeful and practical. There is a sense that the green economy is moving forward.” 

But progress must be collaborative, and Eliot believes change will only come with business, government, finance and academic institutions working together. “These are wicked problems,” he says, “You don’t solve sustainability alone. Almost all major issues  — whether it’s nature, biodiversity loss or climate change — need collaboration, scale and policy.”  

ESG initiatives aren’t everyone’s priority  

It’s a mistake to think that all businesses are focused on ESG initiatives. “While I think it’s true that many European and US large corporates have sustainability and ESG reporting, there are hundreds of thousands of SMEs that aren’t on the first step.”  

Their contribution is important because businesses with under 500 employees represent 90% of businesses globally. Eliot explains that what really drives SMEs to compliance is “requirements placed on them by corporates who are their customers, rather than having specific in-house policies.” 

The differing views on ESG initiatives vary by region as well as by company size. “Unfortunately, the conversation is still a little bit too much of a bubble in the West.” 

Should ESG be anyone’s priority? 

The Cambridge Institute for Sustainability Leadership’s position is that ESG, as traditionally implemented, has failed to deliver the systemic changes necessary to address global crises such as climate change, biodiversity loss, and resource depletion.  

Eliot expands on this, “Actually the fundamentals of sustainability are not about ESG; they’re about navigating the transition that has to happen and will happen.” For businesses, “it’s about thinking in a commercial sense where your benefits and risks lie.” 

The problem is that despite decades of corporate commitments and capital investment in clean technologies, many businesses still prioritise short-term profitability that reinforces unsustainable practices. 

74% of technologists globally say automation and AI help companies develop software more sustainably.  

Proceed strategically for long-term success 

Eliot thinks a wholesale change in thinking is needed. “Rather than discussing ESG and the need to do sustainability out of goodwill, we should talk about the need to focus on it strategically.” 

In the long term, focusing on sustainability can earn consideration and loyalty. “Brand value is a big part of that strategic piece. As companies become increasingly concerned about their environmental footprint, they pay closer attention to their supply chain.” 

He cites Volvo as an example. “As we’re developing new sources of steel that can be made without carbon, you’re seeing Volvo saying ‘OK, I want to make my car from zero-carbon steel because then I can sell it and say it’s a zero-carbon EV’ … and clearly it’s more expensive to do that” but the brand value is greater than the cost of the steel. 

One challenge for SMEs is they often lack the resources to develop bespoke sustainable business strategies. “For an SME, what you want is stuff off the shelf that you can just adopt.” Eliot points us to a solution: “There’s the SME climate hub which includes toolkits, education, etc.”  

The value of competitive sustainability 

One misconception is that sustainability always comes at a cost. Eliot challenges this, saying, “When you reinvent something with sustainability in mind, you drive costs out of the system to make it much more efficient.” And if you’re not looking for these efficiencies, you’re “essentially leaving money lying around on the factory floor.” 

Businesses understand that “opportunities to reduce energy and material use directly benefits their bottom line while decreasing their environmental footprint.” This means “Sustainability becomes not just an obligation but a source of competitive advantage.” 

Free-market competition is playing its role in driving sustainability innovation too. Eliot tells a story about working with a UK water company that wanted to drive carbon and cost out of its infrastructure.

“They focused on the water storage tank, a big construction made of concrete … they put out a request to tender to their supply chain and an alternative supplier came back and said, ‘oh, we did the same thing with heavy-duty plastic, much lower carbon and it’s actually cheaper.’” This stirred the original supplier into action who “realised that they were going to lose this contract, went away and came back with another design.” 

Lasting change requires system change 

All businesses have a role to play in driving change. And it’s to their advantage to do so. By integrating sustainability into strategy, fostering collaboration, and innovating to reduce costs and environmental impact, businesses can unlock new opportunities and stay competitive, not to mention build consumer trust.

For Eliot, lasting change will come by aligning incentives with sustainable practices. “The tension between profitability and sustainability needs to be designed out of the system.” This means the path to sustainability isn’t about doing more of the same. It’s about reinventing business models and leaning-in to the coming transition. 

57% of adults globally say businesses are responsible for considering the environmental impact of their actions on local communities.  

Recommendations for SMEs looking at sustainability: Start small, think big 

1. Leverage ready-made solutions: Use frameworks like the SME Climate Hub to take practical steps. 
2. Engage with supply chains: Collaborate with larger partners who can share resources and guidance. 
3. Focus on quick wins: Adopt low-cost ideas, such as improving logistics, switching to renewables, or reducing material use. 
4. Access grants and programs: Look for funding and government incentives to support green initiatives. 
5. Collaborate within communities: Join SME networks to share knowledge, pool resources, and collaborate on projects like recycling or circular supply chains. 

For more information on how Salesforce can help implement a sustainability management solution into your business, see here.