The best 2x2 matrix I’ve seen - How profitability and decarbonisation are aligned for businesses

I came across this diagram a couple of weeks ago, from Sam Baker, and it helped me understand the best way we, at Pineapple, can support businesses - including our own - deliver on their decarbonisation ambitions and generate returns.

As a reminder, Pineapple’s objective is to create scale partnerships that address market opportunities of the future and accelerate decarbonisation. This is what we mean by the Partnership Era.

This, for me, was the most poignant and brilliant part of a discussion we had last week on Degrowth. It is a way of looking at changing existing business behaviour that should appeal to all. 

Context

I only became aware of Degrowth (or Beyond Growth, or Post Growth), as a concept, in 2023. I had listened to The Rest Is Politics’s Leading interview with Kate Raworth and read sprinklings across a variety of sources. 

I liked the idea. I could not see how it would work in practice.

To my great interest and trepidation, strategic advisor to Pineapple, Sam Baker came to our latest team day to talk to us about ‘Degrowth’. I had visions of a preacher, portending the end of the world, slamming down any dissenters, ignoring challenges, then leaving more frustrated with the “blind idiots”. 

This was far from the reality.

Sam walked us through a very well constructed argument. His “Time to Choose” theory runs as follows:

1. We are in a polycrisis;

2. Prioritising economic growth is contributing to this; therefore

3. We need to reconfigure our economic activity and priorities

   
   

This was all backed up with detailed evidence, graphs, charts and stories. As well as sound historic economic theories and rationale. It was hard to argue with.

Sam then took the session to the next level and described how he presents this to the executives he advises. If he has walked them through the argument and they don’t agree, he asks “at what point did I lose you?”. He will then go back to that point and explore where the hold-ups are. This shows the robustness of his logical path and openness to challenge and discussion.

A breath of fresh air.

There is little doubt that we are breaking the Earth’s planetary boundaries and some reports demonstrate that we are dangerously close to irreversible tipping points. Tipping points, in themselves, are notoriously hard to spot, even when they have been passed. Regardless, there is a need to act by reducing our emissions and stepping further into extracting carbon (and equivalents) from the atmosphere if we hope to sustain the planet that is fit for human habitation as we know it.

And this is why Pineapple’s approach exists. We are creating systemic solutions to address the polycrisis by building partnerships in finance, skills and delivery that will help accelerate the transition of businesses to achieve their financial desires and help the planet.

This brings us back to the diagram at the top! 

Bottom Left → Top Left: Need to identify those processes that are essential for a business, then work out how to reduce their energy usage and emissions. We are doing this successfully with a global manufacturer in the UK.

Bottom Left → Bottom Right: Identify those processes that are not needed and remove, or make them essential, then reduce their energy usage and emissions.

Ultimately, we want to move all processes to the top right, i.e. they are both essential and low energy users.

This gives us a decision pathway on how to reimagine an individual business and the wider economy, it focuses our minds on the priorities for degrowth and/or net zero pathways, and it makes good business sense. If a business can use less energy to do the same things and eliminate its non-essential tasks/processes, it will have a better, more profitable business. 

Pineapple is supporting businesses in moving towards the top-right-hand corner. This requires new ways of thinking and a change from past business models to create sustainable businesses. The Partnership Era. 

Addendum

My exploration of this - and other climate change reading - must continue. As a support/counter, I have just begun Hannah Ritchie’s book, Not the End of the World (a Christmas gift from my brother. Thank you.)

I have only read the introduction and part of chapter 1. Hannah’s writing is clear and concise, her structure is logical and the mix of fact and data analysis with emotion is perfectly balanced.

I will be intrigued to get to the end and see if it informs further on Degrowth, has better solutions, or has a completely different approach altogether.

I will report back!