Giles Gibbons

Good Business - Sustainability | Strategy | Impact

February 12, 2024

1. Just what the doctor ordered

They say that health is wealth, but the relationship between the two is not so simple. In the face of abundant cheap unhealthy food, it’s easy to cut costs and be in poor health. And poor diet costs us financially given the big pressure it places on health systems. With obesity costing the NHS £6.5bn annually and expected to hit almost £10bn by 2050, there’s a clear need to act.

It’s in response to these issues that the Government has funded a pilot project in Wolverhampton to directly incentivise healthy behaviour. Participants in the scheme use wrist-worn devices to track activity and have access to an app giving personalised health recommendations, such as increasing their step count or eating more fruit and vegetables. If they follow through, they are rewarded with vouchers for food and clothes, as well as discounts on entertainment and events. A twenty-week trial involving 28,000 people saw increases in both exercise and healthy eating, with signs that the changes people made may stick.

This will be familiar to anyone who has health insurance with Vitality, which has been pioneering the shared value model for health insurance for around thirty years. With a bigger data set than the recent Government-backed trial, Vitality has found 30% lower hospitalisation costs, 7% to 14% lower healthcare costs for members than non-Vitality members and a reduction of 7% in probable hospitalisation rates – great news for its members and reducing payouts to healthcare providers.

Each £1 invested in public health interventions could offer an average return on investment to the wider health and social care economy of £14. But with cost savings typically taking five to ten years to be realised – crucially, more than one political term – preventative healthcare only accounts for 5% of healthcare spending in the UK. It’s promising to see the Government and businesses supporting individuals to take steps to remedy this situation. And it’s powerful proof of the way careful incentivisation can drive real behaviour change.

2. BiodiverCities

When we think about cities, we don’t necessarily think about the role of nature and wildlife, yet biodiversity is fundamental to thriving urban areas. Cities rely on nature for essential services like building materials, clean air and water, food, medicines, and human wellbeing.

The dilemma is that urban land expansion is a key driver of biodiversity loss. By 2050 it is expected that 75% of the global population will be living in cities, and most future urban expansion will take place in some of the world’s most biodiverse regions. The resulting increase in fragmentation of non-urban ecosystems interrupts wildlife and ecological zones and increases risks from fire, pests, and diseases.

Some cities, notably in India and China, are embracing eco-city developments to address these challenges. Broadly, eco-cities are defined as ecologically sensitive cities which aim to restore natural environments and promote social justice. However, despite their allegedly ‘eco’ credentials, there have been cases where these developments have ignored local contexts, placed an excessive focus on economic growth, and caused environmental harm (see Lavasa eco-city in India as an example).

Therefore, joined-up, context-specific approaches to urbanisation that recognise the importance of biodiversity, and bring together scientists, policymakers and planners are essential. The Peak Urban Project — an international collaboration between universities across the world — has called for the establishment of a new Urban Science Advisory System. They encourage the adoption of a systems approach, connecting those working on cities with those who run and live in them. Similarly, the Columbian government has worked with the WEC on the concept of BiodiverCities by 2030, which encourages the collaboration of multidisciplinary expertise to work towards the ambition for more resilient and adaptive futures for cities. They suggest that BiodiverCities can restore the balance between cities and nature by improving urban governance, adopting nature-based solutions (NbS) and nurturing nature-positive values in citizens.

We think there is a great opportunity to act now, and tap into the potential of urban areas, by encouraging policymakers, businesses and the whole urban community to bring nature and biodiversity to the centre of the urban agenda.

3. Beefing up sustainability

Ten years ago, McDonald's unveiled its ambition to switch to 100% ‘verified sustainable beef’. Progress towards this goal has been slow, (perhaps in part because there were few metrics or hard definitions attached to the ambition) as the fast-food giant has engaged with its suppliers, competitors, and experts to make good on its promise. After a decade, the business is still some way away from achieving its objective and it has now changed its plans, saying it will focus on “beef sustainability” rather than “sustainable beef”. The reasoning? While “sustainable beef” is an outcome, “beef sustainability” indicates a journey. And in a complex area like this, ongoing improvement rather than a tangible and definitive outcome is perhaps a better way of shaping business transformation.

Beef production has many environmental impacts, including deforestation, greenhouse gas emissions, water pollution, and land degradation. McDonald’s first step was to create regional roundtables to nail down clearer definitions across the sector and uncover supply chains aligned with their sustainability principles, before moving into investment in building the industry infrastructure and a network of on-farm research programmes to better understand what beef sustainability may look like.

McDonald’s journey to mitigate the impacts of its beef sourcing illuminates just how challenging transformational change can be. Progress has been deliberate and intricate as the company persists in propelling innovation not only for its own benefit but also for the broader industry. Despite its global might, McDonald’s only accounts for between 1.5 and 2% of beef production in the markets in which it operates, so industry-wide innovation is needed.

Despite the commendable efforts, the absence of clear metrics and interim goals weakens McDonald's ability to drive progress effectively. Another obstacle is the relentless acceleration in consumption and production rates, complicating their sustainability strategy as they seek to disentangle growth from emissions. Beef sustainability is just one piece of the larger puzzle as McDonald's increases its focus on regenerative agriculture. This strategic shift aims to reduce greenhouse gas emissions by collaborating with their value chain to overcome barriers to regenerative farming.

In a business landscape grappling with the challenge of establishing meaningful targets, balancing ambition with realism, McDonald's journey serves as a compelling example. Many industries face difficulties in setting and achieving goals, particularly in areas like plastic reduction, and are uncertain about the way forward. Even when aspirations seem daunting and progress slow, engaging with stakeholders, creating essential tools and metrics, and establishing interim goals can pave the way for incremental changes that can grow into transformational change.

4. Renters revolt

According to recent data, housing is the second highest contributor to UK carbon emissions and continues to pose a significant challenge to our net zero goals. However, a new survey from NatWest points to an interesting trend among renters.

The NatWest Greener Homes Attitude Tracker found that 75% of UK renters are calling for sustainable upgrades to their homes from landlords. While partially motivated by cost savings, this sentiment underscores a growing demand for greener living spaces and, with homeownership increasingly out of reach for many, renters are becoming increasingly vocal about their expectations.

It’s no secret that retrofitting will be a cornerstone of the UK’s efforts to reach its net zero by 2050 goal, and these upgrades not only reduce carbon emissions but also lead to lower utility bills, offering long-term benefits for both tenants and landlords. But there are many challenges in achieving widespread retrofits, with 67% of homeowners saying they were not planning to make improvements and citing upfront costs as a barrier. While there are mechanisms in the private sector that provide financial incentives for sustainable home improvements, such as green mortgages, government support is at risk, with the current government’s targets for greener heating in homes expected to be dropped, and yesterday’s U-turn by Labour on its £28 billion green pledge.

Landlords should take note of rising demand from renters for green investment in their homes, but we also need action and collaboration from all sides – renters, landlords, homeowners and policymakers – achieve our net zero goals. We hope policymakers also take note of the challenges homeowners face in implementing these improvements and step up their efforts to tackle the issue.

5. The Goods: Rent everything but the baby

Parents amongst us will know the feeling of fear that the baby kit list brings on. Desperately googling flash sales and watching your once-lovely living room morph into a baby storage depot. And then, plot twist: your tiny human decides they only need that contraption for a week. What if you were told you could rent everything but the baby?

Enter, Baboodle; the UK’s first baby equipment rental subscription service, offering you access to the full kit and caboodle of the best products for your baby. The products are selected from premium brands to ensure that they have the high quality demanded for a longer lifestyle.

Having a baby can lead to a huge amount of waste, and contributes an enormous amount to your carbon footprint. So we’re very excited to see the baby market embracing circularity, without compromising on quality. This helps avoid unnecessary purchases, increase the amount of use per item, and reduces the amount of baby kit ending up in landfill.

Affordable baby equipment remains elusive for many families. The cost of essential items like prams, cribs, and car seats can create significant financial strain, making it challenging for everyone to access the same level of quality and safety for their little ones. A rental model helps save money on purchases, making it more accessible to all parents. The average Baboodler will rent over £1450 worth of equipment whilst making a saving of over 70%.

Worried about baby barf on the carrier? Any items which don’t meet Baboodle’s strict rental standards find a new home via The Octopus Club, who are creating a wholesome and inclusive platform and saving you from Facebook Marketplace. This helps to extend the items lifetime and prevent it from going to landfill. Don’t miss the offer below…

Our friends at Baboodle are offering Friday 5 readers an exclusive 20% discount if you use the code GOODBUSINESS20. Hold onto your pacifiers, because parenting just got more sustainable and more affordable.