Have you ever had that gnawing feeling, just as you’re sitting down to your computer at work, that you’ve left the central heating on at home? You’re not alone. Rising concern about wasted energy and the financial cost of unregulated thermostats, as well as the convenience of a connected and cozy home, all point to the rise of the smart thermostat. Berg Insights projects it’ll grow 64.7 percent over the next five years.

Founded in Munich in 2011, tado° is Europe’s biggest maker of smart thermostats and air-conditioning controls. Looking to grow, tado° approached IDEO, a longtime collaborator, with a late-stage prototype for a new, wall-mounted gadget to connect any air-conditioning unit to the web so it could be controlled remotely through a smartphone app.

Dubbed tado° Cooling, the device recognizes when people leave their house and heats or cools the house upon their return. The brand tasked IDEO with a three-fold goal: gauge interest in the device, raise brand awareness, and work out product/market fit.

After stakeholder interviews, research, and prototyping, IDEO supported tado°’s team in refreshing the industrial design of the hardware and creating a distinctive yet unified user-interface language for the brand’s existing and future products.

To work out what potential customers thought of tado° Cooling, tado° turned to a novel research medium: Kickstarter. Its ultimate goal? Knowing whether people would part with their money for one. The IDEO team provided an overarching crowdfunding strategy, including funding goals, giving tiers, and marketing, and shot the brand’s Kickstarter campaign video.

As a result, the campaign burst through its $150,000 funding goal to $200,000, and scored coverage in a raft of tech media outlets including TechCrunch, GigaOm, TheNextWeb, Engadget, and PC Magazine. After hitting its “stretch goal,” tado° is adding non-A/C device controls, a Windows Phone app, and IFTTT and Jawbone Up integration.

In addition to media coverage, and showing the public’s appetite for the device, the Kickstarter community’s conversation unearthed further user insights that fed into product development, according to tado° head of design, Jens Pohl.

Buoyed by that success, tado° enlisted IDEO to translate user insights and a big-picture overview of the connected home sector into new services to enhance the device’s UX, and introduced new business models to strengthen its European brand strategy. Early visual concepts, learnings, and evidence from this exploration supported the brand’s investor pitch, securing a further round of $15 million venture capital.

Dr. Reddy’s, a 36-year-old global pharmaceutical company headquartered in India, was growing at a rapid pace. Over the years, the company’s main focus had been on producing affordable generic medication. But with more than 24,000 employees and seven distinct business units operating in 100 countries, there was an urgent need to identify a core, unifying purpose—one that would articulate a set of shared values and align leaders on key business decisions and goals.

G.V. Prasad, the company’s Co-Chairman and Managing Director, knew that the vision had to be simple and elegant–an emotional drive that every employee across the company could relate to and act upon.

Prasad partnered with IDEO to distill the focus that would align the company. Over the course of several months, Dr. Reddy’s team worked with IDEO to learn about the needs of everyone, from shop floor workers to scientists, external partners and investors. Together, they defined and distilled the essence of the company, paring it down to four simple words that center on the patient: Good health can’t wait.

The simplicity of these words belie their power. According to Prasad, the newly articulated purpose has resonated across the company, changing the whole culture of the organization. The idea of infusing a sense of urgency and nimbleness to their systems as a means of serving their customers has had a direct application in almost every corner of the business. Employees connect the message to their own experience, and each of the different business units are now moving towards a common goal.

A Shift Inside

“Good health can’t wait” has become a powerful recruitment tool and employee rallying cry. It makes clear that the company is in the business of serving patients, not just creating products, no matter how innovative or affordable. This has given a new sense of meaning to all personnel, from frontline sales representatives to senior leaders to scientists. Many key decision-makers, including new CEO Erez Israeli, share that the purpose statement inspired them to join the company.

Articulating Dr. Reddy’s purpose has empowered these employees to take risks, experiment, and work together. For example, the marketing department has refocused its efforts on finding solutions that improve patients’ consistent use of their medications. And motivated by the idea that patients can no longer wait for a cure, employees from different disciplines are coming together to find inventive ways of bringing new products to market in record time.

“The website medznat.ru required immense collaboration between various teams—medical, information technology, marketing, and analytics,” says Mvsma Raja, Head of Strategy and Marketing for Emerging Markets. “This served as a platform to bring the latest happenings in the area of pain management to doctors in Russia, who we learned are looking for the latest medical updates on the go.” Building on this cross-functional collaboration and momentum, Dr. Reddy’s established an internal design studio dedicated to using consumer insights and rapid prototyping to drive innovation.

New Offerings

“Our brand belief has inspired how we’ve thought about our future growth,” says CEO Erez Israeli. The new purpose unlocked a series of initiatives, including the aforementioned website for Russian physicians and innovative pill packaging that helps patients better understand their instructions.

Purple Pack is a new type of pill package that ensures that vital information like the expiration date is not torn off and thrown away. Born out of Dr. Reddy’s in-house design studio, Purple Pack allows the pharmacist or patient to mark their daily dosage and reminders on the packaging itself, as paper prescriptions are often misplaced.

A Business Boost

“Good health can’t wait” has not only attracted and unified talent and inspired new offerings, it’s boosted both sales and profit. For example, Dr. Reddy’s generic oral diabetes medication, Metsmall, has become the fourth largest brand in India based on the number of pills sold. The medication is distinct from competitors’ versions in that the pill is smaller and easier to swallow—a clear embodiment of product development oriented around the patient. With its signature Purple Pack convenience packaging, the medication has been one of the fast-growing Indian pharmaceutical brands over the last two years.

Looking ahead, both Prasad and Israeli hope to continue building a purpose-led culture that influences the business from the inside out, inspiring employees to be empathetic and responsive and realizing its mission to deliver good health to all.

In 2006, the MacArthur Foundation made what became a big bet about the future of education, shifting its attention away from the traditional school-based model of reform toward a more youth-centered approach.

By 2014, the bet was starting to pay off, but for it to really succeed, it needed an innovative path to scale and an entrepreneurial approach to sustainability. That’s when MacArthur came to IDEO for help in designing a new organization.

Together, IDEO and MacArthur set out to transform the foundation’s efforts into a self-sustaining enterprise that could balance the social responsibilities of a nonprofit with the lasting viability of a business—an opportunity that was as much about designing a new infrastructure as it was about creating a new culture.

Using a novel prototyping process, IDEO created three illustrated scenarios to tell different versions of LRNG’s possible future, each with an alternative portraiture of its purpose, vision, operating structure, product portfolio, and business model. Through a playful, modular storytelling structure, the stakeholders considered the potential trade-offs of the different approaches and how to prioritize their organizational goals with clear definitions of success.

These different future-forward scenarios helped funders and partners grasp a radical organizational vision, as well as a clear operational model that was go-to-market-ready.

In October 2015, the MacArthur Foundation launched Collective Shift, the organization behind LRNG, with $25 million in seed funding and 30 partners, including Arizona State University, Gap Foundation, the Boys & Girls Clubs, Electronic Arts, and musical artist John Legend.

Based on the scenarios created by IDEO, LRNG is dedicated to creating a “learning as a lifestyle” movement that will transform the learning landscape and close the equity and opportunity gap for young people.

Hundreds of millions of people, from excitable teens driving their first hatchback, to new parents going in for a minivan, have driven Fords off lots around the world since the first Ford Model A was produced in 1903. And cars have changed how we shop, travel, and work; they’ve reshaped our homes, towns, and the world’s infrastructure.

Today, Ford, along with the entire industry, is at an inflection point. As millions around the world move into gridlocked, polluted cities, the allure of owning a shiny new car has dulled. In some places, young people are driving less, and getting their licenses later or not at all. Lightening their load, city dwellers are relying on ride-sharing services and other alternatives to individual ownership.

Technology underpins that shift from ownership to usership. Smartphones, sensors, and open data have enabled new ways of getting from point A to B: from car-sharing services like Zipcar to taxi services like Uber or clever transport apps like Citymapper that help people skip effortlessly between the bus, a shared bike scheme, and renting a car.

While the owner of the very first commercially available Model A—Chicagoan dentist, Ernest Pfennig—couldn’t see more than a century ago how cars would change the world, Ford is squinting into its future by prototyping it now. Building on a longstanding relationship with IDEO, the carmaker approached us, along with a number of other partners, to undertake two of 25 experiments exploring a car company’s place in the changing world of mobility.

The first, Data-Driven Insurance, investigates a new pay-as-you-go insurance offer based on people’s driving behavior, as measured by a small adapter plugged into the car. The second, Infocycle, plots a snapshot of how bikes traverse the city and interact with cars and public transport by using Ford’s open source API, Open XC, to track cyclists around San Francisco.

Tackling the tangled ecosystems of bike sharing, private cars, and open city data proved an international effort. The two projects brought together a multidisciplinary team of researchers, hardware and software developers, data scientists, and interaction, industrial, and business designers from IDEO’s San Francisco, Palo Alto, Chicago, and London studios.

Have we cracked the future of mobility? Probably not. And that’s okay, says Fields. Smart mobility is simply part of Ford’s journey of evolution. Along with global competitions, collaborations with universities, and opening up their hardware and software platform Open XC, these experiments help Ford meet the needs of a fast-changing mobile world. “As we drive innovation in every part of our business,” Fields said, “we are determined to learn, to take risks, to challenge custom and question tradition, and to change our business going forward.”

More information on Ford’s Smart Mobility projects can be found here.

That was the question that we woke up to from our colleague, EJ Baker, on IDEO’s #climate Slack channel in mid-September. For months, Anna Varnai, Jenny Gottstein, Mike Sakowski, and I had been evaluating potential providers and projects to offset IDEO’s carbon footprint in our journey to becoming Net Zero.

EJ’s inquiry brought us back to a question we had been debating for months: Is it better to invest in voluntary offsets or invest more deeply in reducing emissions? While there are legitimate arguments to be made for each path, we felt that emissions reductions weren’t enough. We urgently need to remove greenhouse gasses from the atmosphere. And since we are driven to design the world we want to live in, we chose to meet in the middle—both reduce our emissions and offset what we are unable to reduce. Despite its limitations, offsetting offers a way to strengthen our climate commitments as we ramp up our emissions reduction efforts.

In principle, voluntary carbon offsets appear simple; in reality, they become complicated very quickly. We reached out to offset providers and offset purchasers to learn about their approach and experiences, but instead of walking away with clarity, we realized that no one had really figured it out yet. Even the experts were still grappling with questions like what types of offsets should be used and when, or whether offsetting is even a credible means of achieving Net Zero.

In search of answers, we set out on a quest—diving into academic literature, researching industry best practices, and following countless startups in the space. We learned about the permanence, additionality, and vintage of an offset and how each relates to the quality of an offset project. We learned about the potential social benefits—from community employment to energy access—that come from different projects. We learned about the entities that verify and certify offset efforts. And, we learned that the more we uncovered, the more questions we had.

Should IDEO invest in high-quality and expensive carbon sequestration solutions aligned with our ambitions for the future? Or should we invest in readily available and affordable nature-based solutions? How much geographical representation should we have? How do we know that our investments won’t go up in smoke? How should we think about the intersection between our offsets, climate justice, and IDEO’s DE&I commitments?

The considerations for what to invest in went on, and the dilemma was paralyzing. On the one hand, we wanted to do it all. On the other hand, we had a finite budget and the clock was ticking. What was the right way to get started?

We contemplated having employees vote and help us pick offset projects. While this approach empowered employees to directly shape our company investments, in an area as complex and opaque as the voluntary carbon market, it would be hard for all participants to have an informed perspective in voting.

We contemplated creating a committee that would select projects based on a set of established needs and values. While simple in practice, we weren’t confident an internal team could navigate the magnitude of the task in a manner that fully represented IDEO, and the inevitable scrutiny that comes from decisions like this.

We contemplated seeking advice from third-party experts, but found that many of them sold offsets themselves, raising all kinds of questions about their motives and whether there was a conflict of interest (even though they were extremely generous with their perspective—thank you!).

We needed to get reasonably smart about this space to make informed decisions.

Enter the Oxford Offsetting Principles, a series of guidelines put together by Eli Mitchell-Larson et al., that outline how offsetting should be approached to achieve Net Zero. Informed by these principles, we were drawn to two start-up offset providers, Lune and Patch. These providers stood apart for several reasons. First, they allowed us to select a broad portfolio of high-quality carbon offset projects. Second, their projects had an international reach. From the get go, we knew we wanted our carbon offsetting efforts to reflect IDEO’s global presence, impact, and responsibility. Both Lune and Patch offered a way for us to do so.

From there, having estimated our carbon footprint at around 4,950 t CO2e for 2021, we intentionally over-offset our emissions by purchasing 5,500 t CO2e.

Based on the Oxford Offsetting Principles, we spread those offsets across:

• Global renewable energy projects for Type I (22.5%)
• Forestry protection projects in Asia and Latin America for Type II (22.5%)
• Methane capture at landfills in the United States for Type III (5%)
• Reforestation projects in Africa and North America and regenerative agriculture projects in the US for Type IV (45%)
• Enhanced weathering projects in Europe for Type V (5%)

Overall, we spent a little over $20 per tonne of CO2e with about 92% of those fees going toward the projects themselves. (You can see a visual breakdown of our project bundles with Lune, here.)

Are we confident that our offset strategy is the gold standard? Not quite. But we do feel confident in our approach, and as the voluntary carbon market matures, we will continue to iterate alongside it. We’ve learned that climate action, like design, requires us to get started with curiosity and humility. It demands a learning mindset that seeks progress over perfection.

To those who have purchased or are considering purchasing offsets of your own, we’d love to hear about your approach and what you’re learning.

This article is part of a series detailing IDEO’s journey to becoming Net Zero, the lessons we’ve learned, and our continued commitments to addressing climate change.

“Genuine question: are offsets a useful thing?”

When it comes to sustainability and the food system, looking ahead five or ten years and making eventual environmental commitments are not enough. There is a limited time to act if we want to head off the worst of what’s to come, from major supply chain disruptions to even higher levels of agriculture-related carbon emissions. That’s a challenging reality in the face of a climate crisis that can feel overwhelmingly abstract and a business environment that has long prioritized what is happening in the next quarter, not the next decade.

IDEO is a future-oriented firm, and over the last decade, we have been working with people, companies, governments, and organizations across the food industry who share our exploratory mindset and growing sense of urgency around addressing climate change. We have partnered with global nonprofits seeking to reduce food loss on farms, helped food brands launch products with better and healthier ingredients, are examining corporate procurement’s role in mainstreaming regenerative agriculture, and are working with food companies to help them achieve their environmental, social, and governance (ESG) commitments. It has left us sure of the food future we’re aiming for: one in which the extractive, linear model is replaced by a circular economy that regenerates the environment, builds thriving communities, and develops more nourishing food and beverage products that everyone can access. Design is a vital tool in getting us there.

Circular design recognizes that each individual, from farmers to food workers to consumers, factors into an interconnected and constantly changing system. It allows us to position the human perspective alongside technological and economic constraints and arrive at ways to make food truly equitable, regenerative, and nourishing for both people and the planet.

As we work toward that climate-positive future using the tools of design, here are three things that are on our mind and directing our actions:

The system has made headway in reducing food waste, but there’s more to be done

Globally, about one-third of food is lost or wasted each year. The loss and waste account for 8% of global greenhouse gas emissions and are occurring at the same time that 1 in 9 people are undernourished. “Preventing food waste is ... the food sector’s single most important direct climate action,” is how Sodexo CEO Denis Machuel put it.

Within the US, some 40% of food waste is tied to businesses that serve consumers, like hotels and restaurants. That point was driven home when we partnered with The Rockefeller Foundation and Hyatt Hotels to develop novel ways to tackle food waste at the hotel buffet. We found nearly half of the food put out for guests wasn’t eaten, and at most only 15% of that could be donated or repurposed.

The fear of shortage was a driver, with the hotel kitchen overproducing to ensure they would have ample food for guests, and guests overloading plates so as not to miss out. Knowing that allowed us to introduce simple but effective solutions like displaying small sample plates of meat and cheeses that guests can order, rather than laying out extensive platters.

But a third of global food waste occurs upstream, at the agricultural harvest and production stage. Our work with Japanese growers while developing the fudoloop app highlighted one reason why: a disconnect between supply and demand. Agricultural wholesalers were generally in the dark about coming crop volumes and details, which made it harder to negotiate with buyers—resulting in food waste—while the labor-intensive nature of the harvest left farmers without the time and energy to pursue a solution. The app gets crop information from farmers to wholesalers one day in advance to allow for much more effective coordination.

Similarly, when the World Wildlife Foundation asked us to help minimize food loss on farms in the United States, labor availability emerged as one of the main reasons crops are not fully harvested and packed. Together we prototyped a model that connects farms and local people in need of part-time paid work to harvest surplus produce otherwise left in the fields, and tested the concept on a California tomato farm. Under this model, the harvested fruits and vegetables would then be made accessible to those who need them through a virtual platform that matches a grower’s surplus with a food bank’s demand.

Downstream, food banks and pantries serve as a way to mitigate both food waste and hunger, but challenges abound there too. According to the USDA's Household Food Insecurity in the United States in 2020 report, 61% of food insecure Americans do not use them.

In some cases, schedules and transportation are deterrents, which inspired our work with the Northern Illinois Food Bank. We helped them launch a first-of-its-kind digital pantry that allows individuals to order groceries and select a pick-up time and location in advance. The approach gives food bank users agency and choice, eliminating food waste that can occur when individuals are given foods they dislike or that don’t align with their dietary restrictions. It also allows the food bank to track data—a key element to understanding waste—in order to have better supply and demand signaling.

Food companies need to reimagine their product portfolios with biodiversity in mind

For more than a decade IDEO has worked with CPG clients to create food that is healthier. Biodiversity is the next step in the journey, and it’s a particularly exciting one because of the dual impacts to the planet and human health. In a little more than a century the planet has lost 75% of the genetic plant diversity in agriculture, and per a 2020 report, some 20% of countries risk seeing their ecosystems collapse due to the decline in biodiversity.

The linear economy got us here. Prioritizing efficiency and profit brought us to a place where 75% of the global food supply is sourced from just 12 plant and five animal species. Rice, maize, and wheat account for almost 60% of calories all of humanity gets from plants, curtailing consumption of vital nutrients. The monoculture farming responsible for that shortlist of crops makes the food supply more vulnerable. Monocultures are less able to withstand climate extremes and pests. Diversifying these farms is a way of building resilience.

Transforming dietary diversity at scale requires efforts on production, procurement, manufacturing, product design, and consumption levels. In a recent WBCSD & One Planet Business for Biodiversity report, product design is the most commonly cited area of opportunity when it comes to “staple crop diversification along the value chain.” As designers we believe that individual product design decisions about formulation, sourcing, packaging, and branding collectively shape the food system—and have the ability to send positive ripple effects across it.

We have helped CPG clients advance on their path towards using more biodiverse ingredients through product launches that emphasize healthier and alternative ingredients. That has included working with Betterer Foods to design their RightRice brand, based on an ingredient they developed that tastes and looks like rice but is made from rice and vegetables and has more than twice the protein of regular rice; partnering with Green Onyx, an Israeli company that developed an in-home growing method to produce a tiny aquatic vegetable called khai nam; and working with Bitty Foods to find new product innovation for products made with their high-protein cricket flour.

Through our work, we’ve learned that sustainability is often not the driver when it comes to food choices—yet flavor often is. Biodiversity expands the palate for a food R&D team to think about flavors, textures, and ingredients. It also has the potential to make us healthier. The 2020 WHO report on biodiversity noted one risk factor associated with the loss of biodiversity is “increased consumption of ultra-processed foods high in energy, saturated and trans fats, sugars and salts.” Biodiversity won’t inherently make us healthier if we diversify ingredients but continue to put them into highly processed foods. It's important that R&D teams still consider nutrition as they explore a wider variety of ingredients for their products.

Product design alone isn’t enough. Companies must transform their supply chains

A 2019 study of the 50 largest food and beverage companies in the US found that, of those who disclose the data, scope 3 emissions constituted on average 89% of total reported company emissions. Failure to monitor, disclose, and transform operations to lessen these emissions poses “substantial material risk” for the industry—risk that will only increase. The IPCC Report on Climate Change and Land found that without intervention, emissions from agriculture are likely to increase 30% to 40% by 2050.

We understand the heaviness of this challenge for food companies: How do they design an entirely new system while still operating their businesses in the current system? How can they encourage regenerative farming among different stakeholders along the supply chain to reduce their carbon footprint overall?

With the Circular Economy of Food CoLab, we have been able to use collaboration and rapid prototyping to make those questions less daunting and quickly surface potential solutions. The Food CoLab is anchored by member companies Danone, Kroger, and Electrolux and builds on a network of farmers, food companies, startups, NGOs, and experts.

Since 2018, the Food CoLab has built over 30 prototypes that promote a circular food system: where waste becomes a resource, natural systems and farming communities are uplifted, and all materials realize their highest value. A major focus is reimagining how retailers and food and beverage companies source ingredients and products. Today’s commodity-centric model leads to overproduction on farms, reinforces intensive farming approaches, and shifts the risk of diversifying operations to growers. Yet supporting regenerative production and choosing lower impact, upcycled, and biodiverse ingredients has the potential to realize significant emissions reduction and greater profitability for farmers.

Together we are prototyping new procurement models that support regenerative agriculture, with input from farmers and experts in soil health, ecosystem services measurement, and agriculture innovation. We’re exploring ways that design can help food and beverage companies partner with growers to build soil health and biodiversity, equitably collect and share data, and collaborate across industries and supply chains.

While there are new business models and technologies that might help achieve goals around nature-positive food production, it’s important to acknowledge that regenerative farming is not new. The quest for efficiency and the consolidation of power in global supply chains undermines resilient farming models in the United States and many other places around the world. Many people and communities who hold this agricultural expertise have been denied access to land, capital, research, and other support—and now they face the brunt of food insecurity and climate change impacts. It's imperative to help right these wrongs as we seek to design a more climate-positive food system.

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Addressing these food- and climate-related challenges requires we consider and involve all the players. The cost of reducing food waste, restoring biodiversity, and transforming the supply chain may impact one segment of the food value chain while another segment reaps the benefit. Indeed, one of the biggest challenges to overcome is to realign who makes decisions and who bears the cost. Figuring out how to share both the risk and the reward requires collaboration. Design is a powerful and effective tool to leverage. Human-centered design surfaces the role each player has individually, how they relate to each other, and the amount of influence and power that each has.

The design process enables us to zoom in and out between a potential solution to the challenge at hand and the larger system. It highlights the leverage points, the places where a successful intervention could touch several aspects of the problem, and allows us to quickly start prototyping. We iterate, we learn, we refine the question.

Design is relentlessly optimistic, but it’s also grounded in reality. The climate crisis has gotten where it is because we’ve taken from the earth with little concern for any consequence beyond profit. That’s by design, which means we can also fix it. The redesign can’t wait.

In 2015, we helped IKEA envision the kitchen of 2025. Thinking that far into the future was a visionary move on IKEA’s part. Now, that kind of perspective and action are a requisite.

We quickly realized the complexity of the challenge. There are hundreds of people across IDEO, and each of them make purchases on behalf of the firm in the running of our business—from video conference subscriptions to user research project expenses. With at least 80-90% of any organization’s carbon footprint coming from Scope 3 emissions (including upstream suppliers), calculating one’s carbon footprint is a significantly distributed issue.

But we knew we had to get started. We began by exploring a wide variety of emissions accounting solutions, from countless start-ups in the space to corporations like Salesforce repurposing their internal tools for emissions accounting. In our view, the ideal carbon accounting solution possessed several qualities. It would be accessible and intuitive enough for IDEOers to understand the tradeoffs they are making during everyday purchases. It would be shareable with our clients who are increasingly invested in our sustainability efforts. It would be reasonably priced for a small-to-medium sized business that intends to spend in the low six figures on carbon offsets and hopes to reduce its emissions by 7-8% per year. Most importantly, it would track emissions down to the company level to make it possible for us to vote with our dollars when considering prospective suppliers.

Unfortunately, most of the existing carbon accounting solutions haven’t met our particular set of needs. They often involve cumbersome, manual data entry. The carbon footprint is often estimated at an industry, not company, level. And when you’re hoping to use such a tool to save 7-8% of low six figures per year off your carbon offset budget, emissions accounting solutions can be disproportionately expensive. These are early days for the greenhouse gas accounting industry and, as momentum builds, so will the quality of accounting options available.

After exploring the many solutions in the market, we ultimately embraced a carbon accounting technique shared by Jane Yang, former Head of Data & Senior Policy Analyst at Basecamp, who used academic literature to convert dollars spent in a particular category into the equivalent greenhouse gas emissions. This method gave us a framework to pull data from our Enterprise Resource Planning (ERP) systems and estimate the carbon footprint of emissions-intensive categories like energy consumption, travel, and food. While this technique is not perfect, it was a critical step in better understanding which areas of our business contribute most to our global carbon footprint.

Of these areas, airline travel was having the most detrimental environmental impact. As a consulting firm with offices, clients, and research across the world, we will need to be very thoughtful in how we balance the benefits, and environmental costs, of travel. More on this in a subsequent post.

Estimating IDEO’s carbon footprint also revealed another dilemma: our ERP systems had no data on the downstream impact of our work with our clients. In speaking with experts, we received mixed messages on how to properly account for emissions outcomes from consulting firms like IDEO. On the one hand, our deliverables are often digital assets that have a negligible carbon footprint. But on the other hand, these deliverables represent strategic recommendations or new products and services that could have significant environmental implications. It’s complicated. While we have a clear ethical responsibility to set our clients and the planet up for success, we have chosen not to include the downstream impact of our client work at this time. This is a decision that we will continue to assess going forward.

With that, we turned our attention to the data on hand. Our team’s background in scientific research gave us enough familiarity with the academic literature to find relevant conversion factors for the emissions per dollar spent on different categories of expenses like travel, for example. Using this methodology, we estimated IDEO’s carbon footprint at around ~14,500 t CO2e in 2019, ~6,400 t CO2e in 2020, and ~4,950 t CO2e in 2021. The good news is that these numbers are trending in the right direction, although these improvements were largely side effects of the pandemic (as with many companies). As we plan ahead, we intend to take another look at third-party products to see if any have started to gain an edge, and we’d enjoy the opportunity to learn alongside others that are going through a similar process. Any takers?

This article is part of a series detailing IDEO’s journey to becoming Net Zero, the lessons we’ve learned, and our continued commitments to addressing climate change.

For IDEO to commit to Net Zero or to prioritize emissions reductions initiatives, we first needed to understand the magnitude of our global carbon footprint and which factors were the greatest contributors.

We were at a conference that IDEO was hosting in the Bay Area. We’d just been jamming on the approach Allbirds was taking to carbon labeling its products and he was chastising me for IDEO’s lack of visible progress in addressing the climate crisis.

His feedback stung. But isn’t that what friends are for—to call you on your BS?

I went home and dug into IDEO’s growing portfolio of work in the climate space. We had written a guide to circular design with the Ellen MacArthur Foundation, hosted open innovation challenges to redesign single-use cups and plastic bags with Closed Loop Partners, explored potential scenarios around the future of regenerative food systems, and had begun coaching many of our clients towards work that directly tackled climate change and sustainability. But in poring over our work, I realized that what we were doing so well for our clients, we were failing to do for ourselves. How could we expect our clients to partner with us on such important challenges when our own house wasn’t in order?

Luckily, I wasn’t alone in my desire to catalyze IDEO’s efforts around addressing climate change. Many of my colleagues were grappling with the same questions, including IDEO Partner, Dean Malmgren. As we dug into where we could and should take action, we began to grapple with the impact of Scope 3 emissions.

What are Scope 3 emissions? Greenhouse gas (GHG) emissions are categorized into three “scopes” according to the world’s most widely used accounting standard, the GHG Corporate Protocol. Scope 1 emissions cover direct emissions from sources an organization owns or controls. Scope 2 emissions include indirect emissions associated with the purchase of electricity, heat, steam, or cooling. Scope 3 emissions, or “value chain emissions,” are the result of activities from assets not owned or controlled by an organization. These indirect emissions occur outside of an organization’s operations—think business travel, commuting, or purchased goods.

Interestingly, 80-90% of an organization's carbon footprint comes from Scope 3 emissions—or from their upstream and downstream suppliers. So in order to reduce IDEO’s carbon footprint, we would need to carefully consider the suppliers with which we work and the impact of the work IDEO delivers.

At the same time, we’ve seen many of our clients wrestling with this challenge. While comforting to see, it also gave us a second, much needed, wake up call.

If our clients—many of whom have made public Net Zero commitments—were working on the same problem, they’d quickly arrive at a similar conclusion and start considering the climate impact of their business partners to manage-down their own footprint. We immediately saw the future: IDEO was going to increasingly be put under the microscope to understand whether we were the right partner for their business.

As we socialized this realization, we quickly learned that we’d already seen a steady uptick in clients and procurement partners requesting details about IDEO’s sustainability programs (and rightly so!). Not only are climate initiatives a moral imperative, but there was also a clear case for business risk associated with languishing. We were staring that business risk straight in the face.

And so Dean, I, and many others across IDEO made the decision to “just get started.” Because it’s the right thing to do for the planet. And because it’s the necessary thing to do for our business and for our clients’ businesses.

We made a commitment for IDEO to reduce our emissions in line with the Paris Agreement and to be Net Zero effective Jan 1, 2021. We estimated our carbon footprint. We purchased voluntary carbon offsets for our 2021 emissions. We switched to renewable energy across all of our locations globally. We experimented with addressing emissions offsets in our project plans and contracts. We offered more responsible investments in our 401(k). We have been regularly meeting with our sibling firms across kyu and the broader design consulting industry to share learnings and best practices for evolving our business model for the climate era. And many of IDEO’s locations have taken on a smorgasbord of initiatives to make their operations more climate-friendly as well, from switching to LED lighting, to serving local food and composting whatever we can.

We have made progress, but we are far from perfect. There’s much more work to do. And unfortunately, we are unlikely to be perfect any time soon. That’s where you, dear readers, come into play. Over the next few weeks, we’ll share some of the work we have done and the dilemmas that we have run into along the way. We’re hoping that this is the start of many conversations, ones that not only help us consider different perspectives and approaches, but also help others get started too.

To progress, together!

This article is part of a series detailing IDEO’s journey to becoming Net Zero, the lessons we’ve learned, and our continued commitments to addressing climate change.

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Those were the words that Tim Brown, co-founder and co-CEO of Allbirds, uttered to me just before the pandemic began.

I help organizations cut through complexity by shaping how they show up, through brand strategy, identity, and storytelling.

Working at the intersection of brand and business, I bring an editorial eye and a bias toward making—turning ideas into tangible experiences that people can understand, trust, and believe in.

My work spans government, healthcare, financial services, media, and consumer goods, from launching Gen Z-focused ventures to building innovation labs and reimagining legacy brands. I relish moments of ambiguity and enjoy translating across teams, perspectives, and priorities to move ideas forward.

I started my career in editorial and digital design, shaping cross-platform experiences and identity systems in publishing and agency environments. That foundation still shapes how I work today: I’m detail-oriented, collaborative, and overreliant on the Oxford comma. I hold a BFA in Visual Communication from the School of the Art Institute of Chicago.

For 25 years, I've asked the same question: Who does this design exclude—and what are we going to do about it?

My work spans human-centered strategy, inclusive design, and qualitative research, with clients ranging from Microsoft, Google, and Verizon to the National Science Foundation, and San Francisco Unified School District.

Before IDEO, I taught elementary school in East Palo Alto and spent a decade doing design work with social service organizations—where I learned firsthand what it costs people when systems are built without them in mind.

I am currently writing User Error, a nonfiction book about digital access and the design decisions behind it. I live in Oakland, California.

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My expertise spans brand, communication, and product design across tech, education, the arts, and social impact.

I believe great work demands both high-level vision and obsessive attention to detail, and only happens through collaboration.

I bring an inclusive, hands-on approach and a deep understanding of business, which enables me to consistently deliver excellence while always asking why.

Before joining IDEO, I worked at the brand firms Pentagram and VSA Partners. I began my career as a designer, leading teams at the School of the Art Institute of Chicago and the Milwaukee Art Museum. I hold an MFA in graphic design from Maryland Institute College of Art and a BFA in communication design from the Milwaukee Institute of Art & Design, and have taught at some of the best design schools in the US.

I am responsible for IDEO’s long-term success in China and working with clients to use design as a tool to enable growth. Specifically, I have helped Chinese companies design holistic brand solutions through the development of their products, communication, services, and innovation teams, and I have helped multinationals expand their presence and influence in China.

I advise global leaders on developing China-led innovation and capabilities.

In over 15 years in IDEO Shanghai, I have worked on projects that use design to elevate the quality of the experience of healthcare products and services, streamline processes that increase productivity, create spaces and programs that promote and enable inclusive communities, and build next generation mobility solutions that are planet-positive.

Before joining IDEO, I worked at Philips Electronics and the Electrolux Group in Italy, the Netherlands, and Singapore on a number of breakthrough commercial products. I am a member of the Young President Organization in Shanghai.