Decoupling: How to Separate Business Growth from Environmental Impact
Most consumer product brands are stuck in an unsustainable cycle - in order to grow year-on-year, they have to make and sell more stuff year-on-year. This means using more resources, producing more emissions, creating more waste. In other words, their success depends on an ever-increasing environmental impact.
This is clearly not a sustainable path forward. So how can you break free from this cycle and separate your growth from environmental impact? The answer lies in the concept of “decoupling”.
Relative Decoupling vs. Absolute Decoupling
Relative decoupling involves reducing the connection between business growth and environmental impact. For example, making products more efficiently or reducing their carbon footprint means your impacts won't increase quite as quickly as your business grows. This is a step in the right direction, but doesn't go far enough.
The real goal is absolute decoupling - finding ways to grow your business while actually decreasing your environmental impact year-on-year. This flips the model and turns business growth into a driver for sustainability.
Rethinking How You Generate Revenue
Achieving absolute decoupling requires creativity in rethinking how you generate revenue. Rather than relying solely on sales of new products, look for opportunities to make money from services and activities that actively reduce impacts.
Here are a few examples to spark ideas:
Offer repair services to extend product life, decoupling revenue from new production
Lease products rather than sell to incentivise reuse, decoupling revenue from disposability
Make products from waste streams so more revenue equals more waste diverted
The key is to shift from a linear make-use-dispose model to a circular system where revenue comes from maximising product utility and extending lifecycles.
Turning Growth Into Impact Reduction
By rethinking your business model and revenue streams, you can reach the ultimate goal - having financial growth fuel sustainability. More customers, more revenue, and more impact reduction year-on-year.
The process of decoupling is a transition that will take time and commitment. But the brands that lead the way will build resilience, meet stakeholder expectations, and position themselves for long-term success. Start thinking about this now!
Reach out if you need a sounding board while exploring decoupling opportunities for your brand!
