SPECIAL FOCUS: CONSULTANTS’ FORUM
Embedding sustainability as part of your company’s DNA to drive growth By Greg Carli
W
ith the accelerated pace of societal, environmental and corporate change set to remain, businesses need to prepare for the future by managing risk and becoming more resilient to this change. Some of the biggest risks currently facing businesses include climate change, social inequity, resource scarcity and capital allocation. With the introduction of the United Nations Sustainable Development Goals, we saw sustainability become front of mind for business leaders who are progressively making commitments towards their decarbonization targets and better environmental, social and governance (ESG) outcomes. Understanding what those commitments really mean and developing a road map to translate them into outcomes can be overwhelming. The sustainability journey many organizations speak of is really a strategic planning exercise and operations management approach to non-financial topics. With an increasing focus placed on ESG
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as an inextricable way of doing business, it can be easy to fall into a trap of wanting to do it all. As with anything, establishing the basics is important to delivering on ambitious sustainability goals.
However, many also expressed a lack of confidence in businesses, with 58% of Americans and 63% of Canadians believing businesses will fail to meet their responsibilities to achieve net-zero carbon emissions by 2050. THE CONVERGENCE Combined, these expectations are OF STAKEHOLDER AND pushing businesses to demonstrate CONSUMER INFLUENCE increased transparency of their environThe convergence of stakeholder influ- mental and social impacts. A strong link ence has created an unparalleled empha- between sustainability, growth and persis on ESG issues for business and society. formance is key to meeting and exceedCommunities, consumers and govern- ing those expectations. ments increasingly expect investors to allocate capital in socially, environmen- HOW COMPANIES CAN RESPOND tally responsible and ethical ways to sup- TO DRIVE GROWTH AND PERFORMANCE THROUGH port the broader sustainability agenda. STRATEGIC SUSTAINABILITY Investors are also favouring sustainable-based funds. During the market Balancing growth with environmenturmoil of 2020, the returns on many tal stewardship and social welfare that funds committed to strong ESG out- deliver long-term value to stakeholdcomes performed better than those of ers sits at the heart of sustainability. To comparable non-ESG funds. support this balance, businesses need The ongoing pandemic has reinforced to look towards circular approaches to the shift in consumers amplifying the safeguard the environment, appeal to purchasing power behind sustainable changing consumer trends, and meet the products and companies. Our recent demand for greener products and serglobal survey of some 8,000 consumers vices. Re-thinking products and services showed sustainability factors are a high in light of these challenges can maximize priority, with 86% of Americans and 87% long-term value for stakeholders. of Canadians agreeing that we all have A sound ESG strategy lays out a a responsibility to change our habits to framework to manage risk, realize savhelp the planet become more sustainable. ings, improve performance and increase
Environmental Science & Engineering Magazine
