午夜剧场

Are you familiar with Allbirds sneakers? While sneakers generally have a high dependence on petroleum in their production process, the company's products focus on renewable materials such as wool and wood, making them environmentally friendly. There are three stores in Japan—located in Tokyo and Osaka—and they also sell online. Alternatively, have you ever eaten a hamburger made with plant-based meat (meat alternatives) derived from soy or other sources? The taste is almost indistinguishable from a regular hamburger. Plant-based meat is said to have a relatively low environmental impact and eliminates the need to slaughter animals. These products are designed with consideration for the 'E' (Environment) in ESG. In recent years, interest in ESG has grown in both financial and consumer markets; investors are expected to incorporate ESG into their investments, and various surveys have shown that ESG influences consumer purchasing behavior.

Allbirds went public on the NASDAQ in 2021, and Beyond Meat, a manufacturer of plant-based meat, did the same in 2019. Initially, both were welcomed favorably by investors and their stock prices rose, but that momentum did not last long. As of November 2023, the stock prices of both companies are at less than 10% of their peak levels. The concept of providing a positive impact on society while delivering returns to shareholders is ideal and represents the form of capitalism that the new era demands. However, the reality is that equity investors are impatient and did not wait patiently for these companies to achieve profitability. Furthermore, the sales revenues of both companies have not grown as much as initially projected. This suggests that changes in consumer behavior have not yet fully caught up.

Few investors or consumers would disagree with the opinion that corporate activities and products should become greener and more sustainable. However, there is still no consensus on how to support this shift in corporate activity. While venture companies have led many innovations and social transformations in the past, seeing the struggles of the two aforementioned venture companies that champion green and sustainable practices suggests that shifting social values as a concept—without an overwhelming improvement in convenience for people—may be too heavy a burden for venture companies alone. So, which entities in the business world should take the lead? This lingering uncertainty will serve as the source for my next research.