Over the past 15 years, sustainability has become mainstream in the corporate and financial sectors. But environmental and social conditions are declining rapidly in many regions. Nearly all corporate and financial sector sustainability strategies are focused on company- level activities, such as unilaterally mitigating negative environmental and social impacts. But flawed economic and political systems make it impossible for businesses to mitigate about 80 percent of negative impacts. These impacts often return to harm companies, for example, in the form of market rejection, lawsuits and reputation damage. System change is the most important sustainability issue. Protecting business and society requires substantially shifting the focus of corporate sustainability strategies from company change to system change. A growing number of collaborative system change efforts are being implemented. Most focus on specific issues, sectors or system flaws. They frequently are ineffective because they do not use a whole system approach. All major aspects of human society are connected. Root causes, key leverage points and most effective solutions often lie outside of issue-specific areas. Climate change, economic reform and other complex issues can only be effectively addressed through a whole system approach. This paper summarizes important economic and political system flaws and describes a collaborative, whole system approach for engaging the corporate and financial sectors in system change.
