Trade wars, escalating tariffs, land grabs, AI, and economic nationalism are reshaping global commerce. Regulations like the Foreign Corrupt Practices Act are under scrutiny, and the Sustainable Development Goals remain an unfinished and often ignored agenda.
Long-standing institutions meant to stabilize markets are being tested.
The world order, once defined by cooperation and shared goals, now tilts toward transactionalism. But there is another force reshaping the market: generational change.
Gen Z, the TikTok generation, is stepping into the economy with distinct values, expectations, and purchasing power. Unlike previous generations, they inherit a world marked by climate instability and resource scarcity, and they think differently about consumption, responsibility, and corporate action. Studies indicate that over 60% of Gen Z prefer to buy from sustainable brands, and more than 70% are willing to pay extra for environmentally friendly products. They research corporate sustainability commitments, hold brands accountable, and align their purchasing decisions with their values.
This generational shift is particularly evident in European family-owned firms, where younger leadership is pushing the envelope in rethinking business models. Unlike publicly traded corporations beholden to short-term shareholder expectations, family-owned enterprises have the freedom—and often the long-term vision—to embrace sustainability as a core business strategy rather than a compliance requirement.
Decathlon, for example, has radically shifted its approach, embedding circular economy principles into its product lines, embracing rental and resale models, and prioritising sustainable material sourcing. Their latest moves illustrate a generational willingness to transform business as usual.
In contrast, consider Lego—a company that, despite its global presence and reputation for innovation, recently scaled back its ambitious plan to replace oil-based plastic bricks with sustainable alternatives. The official reasoning? The new materials didn’t meet durability and safety standards. However, this also reflects the stark realities of legacy brands that struggle to balance sustainability ambitions with existing production infrastructure. Yet, Lego enjoys a distinct advantage—it has no serious competitors in its niche, allowing it the luxury of time. Unlike Decathlon, which operates in a highly competitive retail environment where sustainability is becoming a differentiator, Lego can afford to delay its sustainability transition without immediate market consequences.
This leaves us with an important question: Where does that leave the rest of us?
The automotive industry provides a perfect lens through which to examine the tension between legacy markets and the forces of change. BMW recently announced its continued investment in both traditional combustion engines and EVs. Is this the right strategy, or is it hedging against inevitable change? Can businesses balance legacy with the future, or does one inevitably give way?
Perhaps. Yet, staying in legacy, business as usual, won't cut it for long.
Sustainability as status and innovation - the first smart choice
Sustainability is a driver of status, aspiration, and innovation. An upgrade. Consumers don’t buy an EV because it’s good for the planet. They buy it because it’s cutting-edge, efficient, and signals that they are ahead of the game.
Consumers may hesitate to pay more for sustainability, but they will embrace it if it becomes the smarter choice. The key is to integrate sustainability into the cost structure so that it’s automatic rather than optional.
Tesla sold excitement, not carbon neutrality. BYD isn’t winning the EV race by pushing “eco-friendly” messaging—it’s winning by delivering superior technology and value.
Sustainability leaders should focus on making their products aspirational, effortless, and high-performance—not just a moral imperative.
Sustainability as risk management - the second smart choice
Sustainability isn’t about being virtuous—it’s about managing risk and ensuring long-term profitability. Companies that ignore ESG concerns aren’t just missing out on branding opportunities. They are exposing themselves to demand erosion, future liabilities, regulatory fines, and capital flight.
The Corporate Sustainability Reporting Directive (CSRD) isn’t just another compliance hurdle—it’s a fundamental shift in how businesses will be evaluated. Companies that adapt early will shape the rules, attract forward-thinking investors, and secure long-term partnerships. Those who delay will scramble under the pressure of last-minute compliance.
The shift is happening now. Companies that align today will not only secure their position but define the standards for their industries. Those that delay will be forced to follow, struggling to catch up in a landscape where compliance becomes the cost of survival rather than a strategic advantage. The choice is simple: lead with purpose or risk irrelevance.
Businesses that embed sustainability strategically will have a lasting advantage. But how do they do it?
Four steps to leading in sustainability
Sell sustainability, don’t preach It
People don’t want a lecture. They want better, cheaper, smarter, and more exciting choices. Sustainability should feel like an upgrade, not an obligation. Rebrand it as convenience, innovation, and superior quality. Make it the obvious choice rather than the ethical one.
SDGs as a competitive edge
The Sustainable Development Goals (SDGs) are shaping policy and business incentives worldwide. Companies that integrate them now will future proof their brand before competitors wake up. The SDGs won’t force action, but they will define the next wave of regulation and investment. Smart companies position themselves as leaders before the shift becomes mandatory.
Integrate sustainability into core business strategy
Sustainability should not be a standalone initiative or a marketing tool—it should be embedded in supply chains, pricing models, and innovation cycles. Companies that build sustainability into their business model from the ground up will create long-term resilience and competitive advantage.
Measure, adapt, and stay ahead
Sustainability leadership requires agility. Companies should continuously track their ESG impact, anticipate regulatory changes, and adapt to evolving consumer expectations. Those who proactively innovate rather than react to external pressures will define the future of their industries.
Final Thought: lead or be left behind
Sustainability isn’t a burden. It’s the biggest business opportunity of the 21st century. While no company has fully cracked the code, those who start now will be in the best position to win.
Are you going to lead, or are you waiting to be left behind?
As companies adapt, so must consumers. Would I trade my Tesla for a BYD?
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