Tensie Whelan is Distinguished Professor of Practice at NYU Stern School of Business. Her 25 year career spans journalism, environmental nonprofits, and academia, and she's dedicated to proving that sustainability drives financial value. In this episode, she joins Jenn to explain why we need to reframe decarbonisation as innovation. The transformation toward sustainability creates opportunities to invent completely new products and processes that are better and cheaper.
Measure the Money You're Not Spending
Finance teams track what companies spend, but they don't track what companies avoid spending. For example, Tensie described a case where a medical device company refurbished equipment instead of buying new and saved $3.5 million a year. These are significant savings, but most companies never add them up because they're focused on costs going out, not costs that never happen.
Focus on What You're Actually Doing, Not What You Say You'll Do
ESG reporting asks if companies have policies and training programmes. It doesn't ask if those policies really work or make money. The ROSI framework looks at specific actions instead. When an automotive company started tracking what they actually did with waste, like recycling paint solvent, they found they were making $235 million a year from practices they'd written off as compliance costs. Installing LED lighting doesn't just cut energy bills - it reduces maintenance costs by 50% and boosts productivity because people can see better. Track the actions, not the paperwork.
Reframe Sustainability as Innovation
The transformation toward sustainability creates massive innovation opportunities across B2B and B2C markets. Rather than talking about decarbonisation or emissions reduction, companies should focus on innovating new processes, products, and services. They’re more effective and cheaper.