4 minute read
Embedding sustainability as part of your company’s DNA to drive growth
By Greg Carli
With 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 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.
THE CONVERGENCE OF STAKEHOLDER AND CONSUMER INFLUENCE
The convergence of stakeholder influence has created an unparalleled emphasis on ESG issues for business and society. Communities, consumers and governments increasingly expect investors to allocate capital in socially, environmentally responsible and ethical ways to support the broader sustainability agenda.
Investors are also favouring sustainable-based funds. During the market turmoil of 2020, the returns on many funds committed to strong ESG outcomes performed better than those of comparable non-ESG funds.
The ongoing pandemic has reinforced the shift in consumers amplifying the purchasing power behind sustainable products and companies. Our recent global survey of some 8,000 consumers showed sustainability factors are a high priority, with 86% of Americans and 87% of Canadians agreeing that we all have a responsibility to change our habits to help the planet become more sustainable.
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.
Combined, these expectations are pushing businesses to demonstrate increased transparency of their environmental and social impacts. A strong link between sustainability, growth and performance is key to meeting and exceeding those expectations.
HOW COMPANIES CAN RESPOND TO DRIVE GROWTH AND PERFORMANCE THROUGH STRATEGIC SUSTAINABILITY
Balancing growth with environmental stewardship and social welfare that deliver long-term value to stakeholders sits at the heart of sustainability. To support this balance, businesses need to look towards circular approaches to safeguard the environment, appeal to changing consumer trends, and meet the demand for greener products and services. Re-thinking products and services in light of these challenges can maximize long-term value for stakeholders.
A sound ESG strategy lays out a framework to manage risk, realize savings, improve performance and increase
stakeholder satisfaction. Environmentally, it looks at impacts on the planet, energy used, waste discharges and resources needed. Socially, it measures the effects on the workforce and society, relationships with people and benefits to stakeholders. For governance, it considers policies, decision-making rules, organizational structure systems of practice, and stakeholder inclusiveness.
EMBEDDING STRATEGIC SUSTAINABILITY
Establishing long-term goals will enable transformation and create longterm viability and investment opportunities. Integrating these goals into decision making creates value and becomes a key function to achieving the strategic company vision.
Foundational steps include program visioning and governance, stakeholder engagement, materiality assessment, and establishing strategic goals and programmatic focus areas for an ESG program. With that foundation built, the business can embark on a more regular or ongoing cycle of strategy, planning, management and reporting.
GHD recently worked with Shell to manage hazardous waste associated with a crude oil tank. By implementing our recommendations, Shell is improving their ESG strategies with a changed approach to tank cleaning projects as well as a standard practice to improve efficiencies and reduce waste.
Virtually all businesses are grappling with ESG right now, either to attract investment, remain competitive, or futureproof their operations to appeal to stakeholders and consumers. The landscape is evolving rapidly and shying away from it now will only make it a larger challenge in the future. Operationalizing sustainability is a pathway to future preparedness that can ultimately lead to sustained growth.
Greg Carli is global leader for ESG and strategic sustainability at GHD. Email: gregory.carli@ghd.com
Global Products, Local Service, and Advice You Can Rely On
Service Filtration of Canada is a stocking distributor for industrial equipment such as: Pumps, Filtration Systems, Filtration Media, and Process Controls. Since 1988, we have been providing our customers with pumping solutions, filtering innovations, and superior product lines.
Pumps Filtration Chambers & Media Heaters Systems & Controls
ü Improve Profitability ü Improve Quality ü Reduce Emissions ü Reduce Waste ü Save Energy ü Low Maintenance
