Why Corporate Sustainability Is the Key to Our Future
If the sheer amount of destruction we humans are creating continues for much longer, the Earth is—simply put—doomed. It’s all good and well when we pledge ourselves to minimising our plastic wastage or meat consumption; everyone knows to a certain degree how they can play their part in the collective journey towards a sustainable Earth. But, like so many other journeys, a roadblock is reached—a plateau if you must. This journey might seem a group effort, but we just aren’t thinking big enough; we need to step back and really look at the big picture. Individuals like you and I are coming together are committing ourselves to saving the planet, but significant positive results are nowhere to be found. The answer? Corporate and conglomerate ignorance.
Why do I say that, you ask? The answer is simple: the majority of huge multinational businesses with a ton of power and influence have yet to adopt meaningful sustainability models. Imagine how quickly things would change if these billion-dollar companies began to ratify environmental sustainability schemes, whether it be for their production processes, transportation, or even outsourcing of resources. This is why I think that things will really start to pick up once these conglomerates start taking the environment into consideration. And that, is exactly what corporate sustainability is: it’s the business model that doesn’t just prioritise the economic implications of business, but also the social and environmental implications. just strive to maximise profit, but rather on societal goals—particularly those related to sustainable development. These goals can include an increase in social awareness/responsibility or further consideration of the company’s environmental impact. The main objective is to do business which is devoid of purely selfish ulterior motives, by ensuring the welfare of all contributors (workers) and not just those at the top of the food chain, as well as the welfare of the planet.
Our world would look very different if large companies adopted sustainable business models; I might even say that we would enter a ‘cycle of prosperity’. Picture this: a multibillion dollar clothing company alters its policies and decides to begin the road to sustainability. It starts off by saying:
“It’s okay that our profits will decrease, because we’re paying our workers fairly and saving the environment. We’re doing this for the greater good.”
The company starts by increasing the wages of even its lowliest workers, ultimately helping them up their quality of life. It also starts to outsource the various required raw materials more sustainably, whether the material be organic, or the production of it more resource efficient. It might cost more, but the benefits outweigh the drawbacks, right? So the workers, happier with their increased wages, now have the option to ponder where to do their shopping, instead of opting for the most affordable choice. Often, a sustainable scheme may very well influence and inspire employees to be more conscious of their own environmental footprint. As a result, employees may well choose to shop second-hand, or even buy from a responsible brand. This therefore leads to more money being put into sustainable brands, which helps employers pay the higher wage, and the cycle continues. Not only does this cycle encourage and strengthen sustainable clothing companies, but it also discourages the fast-fashion tycoons that exploit and abuse cheap labour. Overall, I can’t imagine a world where large corporations adopting a sustainability model has more cons than it does pros. We need to shift from the capitalist mindset which sends money directly to the rich and doesn’t leave any for the ones who need it most. It literally feeds those at the top oodles and oodles of wealth and leaves the bare minimum to those at the bottom, while also causing mass environmental destruction.
Another indirect benefit of corporate sustainability is that it takes into account all types of equality. After all, sustainability itself isn’t just about the environment; the argument stretches towards racial justice, feminism, and the wealth gap. Large companies can set examples for ordinary citizens and show that sustainability is the right responsibility. Caring about these social factors can help us work towards a sustainable future, just as well as caring about the environment can help us alleviate these social issues. It’s not about who can live the most lavish pseudo-sustainable lifestyle with all kinds of expensive bamboo goods, but about preserving what is available and maximising what we already have. Everyone should have and choose the option to live more sustainably, regardless of how wealthy they are. If this idea was perpetuated by prominent multinational companies, the amount of change—even in a short time—would be phenomenal.
I could drone on about corporate sustainability and its pros, but what I’m trying to convey is that it would begin a domino effect of environmental sustainability and ultimately play one of the biggest roles in our journey towards a better future.
Some industry leaders that have adopted sustainability initiatives (copied from this IMD article, which is well worth a read if you want to know more about corporate sustainability):
Nike and Adidas have both stepped up seriously. Nike has focused on reducing waste and minimizing its footprint, whereas Adidas has created a greener supply chain and targeted specific issues like dyeing and eliminating plastic bags.
Unilever and Nestlé have both taken on major commitments; Unilever notably on organic palm oil and its overall waste and resource footprint, and Nestlé in areas such as product life cycle, climate, water efficiency and waste.
Walmart, IKEA and H&M have moved toward more sustainable retailing, largely by leading collaboration across their supply chains to reduce waste, increase resource productivity and optimize material usage. It also has taken steps to address local labour conditions with suppliers from emerging markets.
Pepsi and Coca-Cola have both developed ambitious agendas, such as increasing focus on water stewardship and setting targets on water replenishment.
In biopharma, Biogen and Novo Nordisk have both worked toward energy efficiency, waste reduction, and other ecological measures. They have also focused on social impact via partner initiatives in the areas of health and safety.
In financial services we see how banks like ANZ and Westpac in Australia both advance local communities with good sustainability practices and by embedding sustainability in their business processes and culture.
Car manufacturers like BMW and Toyota have made strides on energy efficiency and pollution reduction, not to mention Tesla as an outsider really challenging the industry’s overall footprint.
