The Week That Shook the Oil Industry to Its Core

A Turning Point for the Oil Industry

It’s been an extraordinary week.

In a major coup for people and the planet, Exxon Mobil shareholders voted two new
directors onto their board this week to ensure the oil giant does more to tackle climate
change and re-direct its business toward a sustainable future.

In the same week, two other corporate giants were brought to their knees by
those determined to make a difference. Chevron Corporation, the owners of Texaco and
Noble Energy, was forced to adopt a resolution by its shareholders to reduce its carbon
emissions. Meanwhile, on the other side of the Atlantic, British-Dutch oil and gas
multinational Shell was ordered by a Dutch court to lower its greenhouse gases by 45%.

A Battle for the Future of Business

What we are witnessing is an ongoing battle for the future of business, not just in
the oil industry but across the corporate landscape. It’s a battle between the
old guard defenders of the status quo and a fast-growing vanguard of investors,
consumers, and employees who are tired of listening to the self-serving motives of
short-term-focused executives and financial opportunists.

Time is quickly running out for those who still believe that profit comes before people and the planet.

Sustainability at the Core of Business Strategy

Sustainability is moving to the core of business strategy—exactly where it
needs to be in the 21st century. Treating CSR/ESG as a ‘nice to have,’ a bolt-on
afterthought, or merely a ‘social license to operate’ is no longer enough.

The Tools for Change Exist

There are tried and tested tools, technologies, and approaches developed over many years that ensure change is not only possible but practical. Change is deniable, but it is also inevitable. Those who embrace it will not only ensure their business survives the coming decade but thrives in a way that meets the needs, wants, and desires of all stakeholders.

About the Author

Neil Gaught is the conceiver of Single Organizing Idea (SOI®) and the author of two books, CORE and The CORE Playbook.

Find CORE here:

• CORE (UK)
• CORE (USA)
• The CORE Playbook

There Be Dragons – Or Are They Dinosaurs?

Dragons’ Den and the Future of Business

Dragons’ Den, the international reality TV franchise that originated in Japan in 2006, pits fund-seeking entrepreneurs against celebrity-seeking venture capitalists. Last week, on Canada’s CBC channel, the show aired an ‘Up-cycle Special,’ featuring fledgling businesses aiming to make the world a better place.

By coincidence, I was in Montreal with my Canadian Associates, Umalia. As part of our work, I spent a morning talking with the founders of the business that would later set the Den on fire that very night.

Norden: A Business with Purpose

Norden was inspired by CORE, and the power of a Single Organizing Idea (SOI). The book sparked an epiphany, leading two visionary individuals to create a world first—outerwear made entirely from recycled plastic water bottles.

Every aspect of Norden’s garments—the shell, lining, and insulation—is made from traceable, digitally numbered fibers supplied by Repreve®. Only the zips and fastenings are not made from waste materials. Founders Mayer Vafi and his silent partner, investor and mentor Michael Eliesen, have demonstrated how being organised around a single compelling idea can lead to practical, sustainable solutions.

A Harsh Reception in the Den

During the show, Mayer delivered his pitch with enthusiasm. The Dragons initially responded with excitement:

“Wow!”

“It’s so fashionable.”

“Hard to believe.”

“Very cool.”

“A good buy.”

Models showcased Norden’s designs, and the Dragons eagerly tried on various styles. But then, the mood shifted.

The Dragons’ Short-Sightedness

What the Dragons failed to understand is that Norden, like other emerging sustainable businesses, represents a new breed of company—one whose primary focus is not on maximizing profit but on saving the planet.

When Mayer explained that he would welcome competitors into his space, he was met with ridicule:

“That’s not true, that’s not true, tell the truth!”

“No one puts $1.2m in just hoping everyone else takes a market share.”

But actually, that’s exactly what Norden is doing.

A Collaborative Future

As Michael explained earlier that day:

“Our objective is to lead change; to help make our industry sustainable. It’s not at all easy, and we can only do that if we all act together—not just with our suppliers and partners, but also with our competitors.”

This approach makes total sense to leaders in sustainable fashion, such as Stella McCartney, Community Clothing’s Patrick Grant, Eileen Fisher, and Patagonia’s Yvon Chouinard. It even extends beyond fashion—at NY Climate Change Week 2018, the Chairman of French multinational Suez stated:

“The only way to deliver real change is for all competitors to act together.”

The Problem with Dragons’ Den

I’ve always had an issue with Dragons’ Den (and don’t get me started on The Apprentice). I understand that reality TV thrives on drama, but what aspiring entrepreneurs truly need is encouragement, constructive guidance, and empathy.

One of the Dragons stated at the start of the show:

“I think the Den has always been a reflection of what is happening out there.”

Sadly, that may be true. To change the system, we need a shift in attitude, and that must come from business leaders—whether they are Dragons, Titans, or Sharks.

Business as Usual Is Outdated

Sustainability isn’t a business “trend to plug into,” nor is it an act of charity “because I have a foundation.” It is our future.

Perhaps Norden was on the wrong show. Maybe Dragons’ Den is also outdated.

About the Author

Neil Gaught is the author of CORE: How a Single Organizing Idea Can Change Business for Good, published by Routledge.

Find CORE here:

• Paperback (UK)
• Paperback (USA)
• Kindle (USA)
• Audiobook (USA)

CORE was a finalist at the 2018 Business Book Awards.

The Time for Business to Act Is Now

A Call to Action

This agenda introduced 17 Sustainable Development Goals (SDGs) and 169 targets designed to address global challenges such as poverty, hunger, health, education, climate change, and environmental sustainability.

The ambition behind the SDGs was groundbreaking—unlike the Millennium Development Goals, which primarily focused on developing nations, the SDGs were universal. Their promise? A fairer world where reduced poverty, improved health, and better education would generate wealth that is more equitably distributed. At their core, the SDGs presented an opportunity for capitalism to evolve by doing good.

Three Years Later: A Sobering Reality

Fast forward to September 25, 2018, during Climate Week NYC, and the optimism had waned.

Jeffrey Sachs, economist and special advisor to the UN Secretary-General on the SDGs, did not mince words:

“We’ve achieved almost nothing. Markets don’t do social justice.”

Sachs argued that markets not only fail to deliver social justice but actively work against it. He described a world obsessed with wealth accumulation, where environmental and social concerns are continually pushed aside.

Earlier that evening, Jean-Louis Chaussade, CEO of the French multinational Suez, voiced his own frustrations:

“What do we do? How do we move from A to B? How do we close down our cash cows? Companies cannot and will not move alone. It’s a simple question of supply and demand; if there is a need, companies will meet it. They will not change.”

Hope from Innovation

Not all perspectives were as bleak. Bertrand Piccard, the visionary behind the Solar Impulse project, pointed to technological breakthroughs as drivers of change:

“Businesses can understand that growth can be achieved in a sustainable manner. Some can even see beyond the short-term when necessary, but the argument needs to be logical, not just ecological, to get them to change.”

Customer Activism: A Key Driver

One of the most striking comments of the evening came from Chaussade:

“We need to accelerate the activism of customers to focus minds.”

At the 2nd London Core Dinner Debate business leaders reflected on this statement. Nick Davies, CEO of Neighbourly, emphasized that customer activism is vital, but so is business education:

“Businesses need to do much more to educate their customers.”

The debate, which included representatives from M&S, Sodexo, The Climate Group, HSBC, EDF Energy, and others, highlighted the ongoing struggle between sustainability teams and short-term financial targets.

The Power of Media

A guest at the event pointed to the impact of Blue Planet II as an example of how media can drive real action:

“We’ve been banging on about sustainability for 30 years, and then suddenly this program comes from nowhere and the impact is instant. People leave plastic packaging on supermarket floors, plastic straws and cups are banned overnight, and plastics companies go bust—it’s been remarkable.”

Despite decades of climate education, many still fail to grasp the urgency. The key question remains: how can we make climate change feel real and immediate?

The Business Imperative

Many attendees acknowledged progress within their supply chains but admitted that sustainability is still often treated as an add-on rather than a core business priority. This urgency was reinforced when, on October 8, the Intergovernmental Panel on Climate Change (IPCC) released a critical report warning:

“Climate change is not the next generation’s issue. It’s ours.”

The Role of Business Leadership

Businesses have the resources, influence, and ability to drive meaningful change. Companies like Unilever have shown that a strong purpose, structured around a methodology such as Single Organizing Idea (SOI), can accelerate sustainability efforts.

For businesses, this means:

• Turning sustainability commitments into concrete actions.
• Expanding sustainability efforts beyond supply chains to entire business models.
• Rethinking operations from the ground up to align with a core purpose that benefits all stakeholders.

The Time to Act Is Now

The IPCC report made it clear: businesses cannot afford to wait for governments to take the lead or pass the responsibility onto others.

Sustainability must be woven into the fabric of business operations—not just as a CSR initiative or a marketing strategy, but as a central pillar of business strategy.

About the Author

Neil Gaught is the author of CORE: How a Single Organizing Idea Can Change Business for Good, published by Routledge.

Find CORE here:

• Paperback (UK)
• Paperback (USA)
• Kindle (USA)
• Audiobook (USA)

CORE was a finalist at the 2018 Business Book Awards.

Royal Dutch Shell Searches for a Purpose Beyond Oil

This article summarises an original piece from the Financial Times, part of an FT series exploring the risks and trade-offs businesses encounter when defining a broader purpose.

Navigating an Uncertain Future

In May 2017, Ben van Beurden, CEO of Royal Dutch Shell, convened a meeting with top executives in The Hague to discuss the company’s long-term future. The company was facing numerous challenges, including falling oil prices, a $53 billion takeover of natural gas giant BG Group, and scrutiny over a controversial Nigerian deal.

At the heart of the discussions was a pressing dilemma: how should Shell, one of the world’s largest oil and gas companies, navigate a future where political and public sentiment is turning against fossil fuels?

Reevaluating Purpose

As companies across industries reassess their role in society, Shell executives debated the implications of the Paris Climate Agreement, the impact of reducing oil and gas production, and whether the company should take responsibility for customer emissions.

The outcome of these discussions was a strategy that embraces low-carbon energy while still relying heavily on oil and gas, which remains Shell’s primary source of profit.

Shell’s Energy Transition Strategy

Shell has pledged to cut the carbon intensity of its products by 50% by 2050, taking inspiration from corporate sustainability efforts at companies like Mars. The company has invested in:

• Natural gas (as a lower-carbon alternative to oil)
• Renewable energy (wind, solar, and hydrogen fuel projects)
• Electric vehicle infrastructure
• Home energy storage solutions

Despite these initiatives, two-thirds of Shell’s cash flow still comes from oil. While CEO van Beurden hopes to eventually balance oil, gas, and renewables, there is no clear timeline.

Balancing Profit and Sustainability

Shell faces criticism from multiple sides:

• Investors expect high returns, making an aggressive transition to renewables risky.
• Environmental activists accuse Shell of greenwashing.
• Industry peers question whether Shell truly wants to move beyond fossil fuels.

According to Adam Matthews of the Church of England Pensions Board, Shell’s investment in renewables remains disproportionately small compared to its continued focus on oil and gas.

The Challenges of Change

Shell executives acknowledge that the transition away from oil will take time. Van Beurden himself has stated that the company cannot afford to abandon fossil fuels prematurely, emphasizing that the profitability of low-carbon businesses must improve before significant capital shifts can occur.

The article notes that Shell is not alone—many energy giants face similar dilemmas as they attempt to balance financial sustainability with increasing pressure to embrace a low-carbon future.

Looking Ahead

Shell’s ability to maintain shareholder value while transitioning toward sustainability will be a test of its leadership and strategy. As van Beurden puts it:

“We have to find a way to preserve our dividend-paying capacity while growing the value of the company and changing its makeup.”

Whether Shell can successfully reposition itself as a clean energy leader while maintaining profitability remains to be seen.

Further Reading

• Full article: Financial Times (Subscription Required)
• Shell’s Official Sustainability Page
• Paris Climate Agreement

Raising the Purpose Banner (Again) Is Only the Start

Bringing communications and CSR (Corporate Social Responsibility) teams together under a shared purpose is a step forward.

But to deliver sustainable success for all, it is critical that Executive Teams and their Boards grasp the initiative and hot-wire purpose into the core of their business strategy. When that happens, purpose is elevated and given the status it requires to affect real change. It subsumes old-school generic mission/vision statements and becomes THE Single Organizing Idea (SOI) of the business and the ecosystem it both influences and relies upon.

The Measurable Impact of an SOI

A Single Organizing Idea (SOI) is a methodology that ensures a business is fully aligned with its purpose, embedding that purpose at the core of its strategy and operations. The impact of an SOI is both tangible and, in some areas, almost immediate:

• Internally: Employees feel connected to a meaningful movement that enhances both the success of the business and their own personal fulfillment.

• Externally: ESG (Environmental, Social, and Governance) initiatives aligned with an SOI designed for sustainable value creation attract attention from long-term institutional investors.

• Talent Attraction: A well-defined SOI resonates with purpose-driven professionals, drawing top talent eager to contribute to a meaningful mission.

• Innovation & Partnerships: Transformative innovations emerge through dynamic new partnerships and strengthened collaboration across supply chains and beyond, all driven by the SOI.

Where Are the ‘Activist CEOs’?

It’s all very positive and, of course, all very possible. But to make any of this happen, we need the ‘activist CEOs’ touted by Edelman @Davos in January and referenced in various publications like Harvard Business Review and CEO Magazine to show up, get involved, and start delivering.

This does NOT mean speaking out or standing up for ‘cherry-picked’ causes. That is just cynical, short-term brand management dressed up as CSR or Shared Value, with an eye on the perceived ‘brand preferences’ of Millennials.

Realignment, Not Greenwashing

No. This is about radical realignment and organizational development that will deliver practical outcomes. It’s about fundamentally redirecting the businesses they lead to deliver actions at scale that will save both the planet and people.

About the Author

Neil Gaught is the author of CORE: How a Single Organizing Idea Can Change Business for Good, published by Routledge.

Find CORE here:

• Paperback (UK)
• Paperback (USA)
• Kindle (USA)
• Audiobook (USA)

CORE was a finalist at the 2018 Business Book Awards.

Purpose Without Total Commitment Is Meaningless

Can Companies Do Well by Doing Good?

Prof. Ioannou’s latest article on sustainability and strategy in the Harvard Business Review confirms that companies can do well by doing good:

“Our exploratory results confirm that the adoption of strategic sustainability practices is significantly and positively associated with both return on capital and market valuation multiples, even after accounting for the focal firm’s past financial performance.”

This is good news, but how should companies react to it?

The article suggests that companies considering the adoption of sustainability practices are arriving at a crossroads that questions their motivation: “Are we doing this to survive or compete?”

Of course, it is both. But there is a third and more important factor to consider that makes adopting sustainable practices in the hope of achieving either objective a fool’s errand. That factor is commitment.

The Problem With Half-Hearted Sustainability

Unless a business is totally committed and motivated by a genuine human desire to contribute to a future that benefits all its stakeholders, any actions it takes will be seen as little more than a branding makeover. A company that simply adopts sustainability to gain competitive advantage or to appear to care is bound to fail in the long run.

There are many examples of this, but ExxonMobil is a case in point, as highlighted by the #ExxonKnew campaign and The Economist’s recent article on the oil industry and climate change.

Only by defining or redefining the core purpose of the business and putting ‘doing good’ front and center of its strategy—ensuring every single function of its operation actively aligns with a cause that matters beyond making money—can a business truly demonstrate that it is worthy of the support and essential resources (money, time, ideas) of its stakeholders.

Commitment: The Key to Sustainable Business

In the final chapter of my book CORE, I tackled the need for commitment. To introduce the subject, I quoted the acclaimed economist and strategist Pankaj Ghemawat, whose 1991 book Commitment: The Dynamic of Strategy helped shape my early thinking about the potential of Single Organizing Idea (SOI). He wrote:

“Commitment is the only general explanation for sustained differences in the performance of organizations… What needs to be emphasized is that the degree of commitment in regard to choices ensures that they can lead to sustained differences rather than merely transient ones.”

For further reading, David Grayson, Chris Coulter, and Mark Lee underline the need for total commitment in their aptly titled 2017 book All In. It’s time businesses and business leaders made that commitment.

Making Purpose Real With SOI

Single Organizing Idea (SOI) is a proven methodology conceived by Neil Gaught that enables businesses to integrate purpose at the core of their strategy, operations and decision-making. It aligns commercial success with positive social and environmental impact by ensuring that a company’s purpose is embedded in every aspect of its business model. Rather than being an add-on or marketing tool, an SOI serves as a guiding principle that shapes how a business operates, competes and delivers value to all stakeholders.

About the Author

Neil Gaught is the author of CORE: How a Single Organizing Idea Can Change Business for Good, published by Routledge.

Find CORE here:

• Paperback (UK)
• Paperback (USA)
• Kindle (USA)
• Audiobook (USA)

CORE was a finalist at the 2018 Business Book Awards.