Taking a ‘Systems Approach’ for Sustainability in Business

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Sustainability Directory

7 min readMay 17, 2024

Too many people see sustainability as a simple or isolated problem that can be solved with linear or reductionist thinking. Alas, this simply isn’t the case. It’s a complex and interconnected issue that requires holistic and adaptive thinking.

We refer to this as taking ‘a systems approach’, which is a way of thinking that sees the big picture, not just the pieces. Such ‘thinkers’ know that everything is connected and affects everything else, sometimes in surprising and crazy ways. They realize that there are many different views and values in any system, and that they all matter when making decisions and taking actions.

A systems approach is very important for sustainability, which is about solving the big problems we have today, like climate change, biodiversity loss, poverty, inequality, and health. These problems aren’t separate (nor, for that matter, easy), but linked and ‘wicked’. Addressing the myriad of sustainability issues requires a different way of thinking that is both whole and flexible. A systems approach can help us do that, by helping us understand the problems better, find the best places and ways to change them (leverage points), and create solutions that work and, crucially, last.

It’s no surprise then that businesses need to adopt a systems approach to their sustainability efforts.

Dominoes toppling in a row, illustrating a cascading effect, metaphor for a business implementing a sustainable system. — Dominoes Falling in a Row Sustainability Business Strategy

What is a Systems Approach and Why Does It Matter?

A systems approach considers the interconnections and interactions between different elements of a complex system, such as the environment, society, and economy. It recognizes that these elements are not isolated or independent, but rather influence and depend on each other in dynamic and often unpredictable ways. This approach also acknowledges that there are multiple perspectives and values involved in any system, and that these need to be taken into account when designing and implementing solutions.[1]

Applying a systems approach to sustainability is crucial for addressing the global challenges we face today, such as climate change, biodiversity loss, poverty, inequality, and health. These challenges cannot be solved with linear or reductionist thinking. Why? Because they’re interconnected and complex issues that require holistic and adaptive thinking. By using a systems approach, we can better understand the root causes and consequences of these challenges, identify leverage points and opportunities for change, and design solutions that are more effective, resilient, and equitable.[2]

Hand nurturing a miniature terrarium with plants and water, symbolizing small-scale sustainability efforts. — Hand Cultivating Miniature Nature in Bowl

How Can Businesses Adopt a Systems Approach to Sustainability?

Businesses play a vital role in shaping the sustainability of our world. They have the potential to create positive or negative impacts on the environment, society, and economy through their products, services, operations, and supply chains. Therefore, companies need to adopt a systems approach to sustainability in order to align their strategies and actions with the needs and expectations of their stakeholders, as well as the planetary boundaries and social foundations that support human well-being.[3]

Adopting a systems approach to sustainability involves several steps for businesses:

Define the system boundary and scope. Businesses need to define the system they are part of or influencing, and determine the relevant elements, relationships, perspectives, and values within that system. This can help them identify their material issues, impacts, risks, and opportunities for sustainability.[4]
Analyze the system dynamics and trends. Considerable effort should be invested to analyze how the system behaves over time, how it responds to changes and shocks, and what are the drivers and feedback loops that affect its performance. Only by doing so can companies better understand the root causes and consequences of their sustainability challenges, as well as the trade-offs and synergies between different goals and indicators.[5]
Envision the desired system outcomes and scenarios. Visioning matters and so companies should envision what kind of future they want to create or contribute to within the system and along their value chain. This will include identifying what the desired outcomes and indicators for sustainability are. In doing so, businesses are better able to define their vision, mission, values, and purpose.[6]
Design and implement system solutions and innovations. This means considering the impacts and implications of their design solutions and actions across the system, involving multiple stakeholders in co-creating solutions. It includes testing assumptions and hypotheses through experiments and learning cycles, and scaling up successful practices through collaboration and diffusion.[7]
Monitor and evaluate system performance and impact. Businesses need to monitor and evaluate how their solutions and innovations affect the system performance and impact over time. This includes measuring and reporting on their progress towards their sustainability goals and indicators, using qualitative and quantitative data from various sources, applying feedback mechanisms to adjust their actions based on results, and communicating their impact transparently and credibly to their stakeholders.[8]

Dominoes falling in a row representing a systems approach to sustainability in business. — Systems Thinking Domino Effect

What are Some Examples of Businesses Using a Systems Approach to Sustainability?

Nike: Circular Design for a Regenerative Future

Nike is one of the world’s leading sports brands that aims to create products that are more sustainable for people and the planet. Shoes are notoriously difficult to recycle due to the number of materials used in their production. To start addressing this, Nike uses a circular design approach that considers the entire life cycle of its products, from materials sourcing to manufacturing to end-of-use. Their circular design principles include minimizing waste, using renewable or recycled materials, extending product life span, enabling product reuse or regeneration, and delivering positive social impact.[9]

While still a long ways to go, Nike’s circular design approach is driven by its vision of creating a regenerative future where products never become waste. The company believes that by applying circular design principles across its product portfolio, it can reduce its environmental footprint, enhance its brand value, increase its customer loyalty, create new revenue streams, foster innovation, and contribute to global sustainability goals.[10]

Tesla: Accelerating the Transition to Sustainable Energy

Tesla is one of the world’s leading electric vehicle manufacturers that aims to accelerate the transition to sustainable energy. The company uses a systems approach to sustainability that considers the interconnections between transportation, energy generation, energy storage, and energy consumption. Tesla’s systems approach involves developing products that enable clean mobility, renewable energy production (solar panels and roofs), and energy management (batteries and software).[11]

This approach to sustainability is driven by its mission of making a positive impact on the environment, society, and economy. Tesla believes that by developing products that integrate transportation and energy systems, it can reduce greenhouse gas emissions, improve air quality, enhance energy security, lower energy costs, create jobs, spur innovation, and support global sustainability goals.[12]

Taking a Systems Approach to Sustainability

Systems thinking is a way of making sense of the complexity of the world by looking at it in terms of wholes and relationships rather than by splitting it down into its parts. It helps us understand the interconnections and interactions between different elements of a system, such as the environment, society, and economy, and how they influence and depend on each other.

It also recognizes that there are multiple perspectives and values involved in any system, and that they need to be considered when designing and implementing solutions. This will be crucial for addressing the global challenges we face today, such as climate change, biodiversity loss, poverty, inequality, and health, which are interconnected and complex issues that require holistic and adaptive thinking. By using systems thinking, we can better identify the root causes and consequences of these challenges, find leverage points and opportunities for change, and design solutions that are more effective, resilient, and equitable.

Row of dominoes falling one at a time, illustrating the interconnectedness of business sustainability practices. — Systems Thinking Domino Effect Sustainability Business

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