The Sustainability Imperative

The recent rise in public concern and expectations around climate change and environmental issues is placing mounting pressure on the businesses to adapt. But this is not the only reason for businesses to make sustainable changes: there is increasing global recognition that business “as usual” is no longer viable.

By now, we all understand the importance of investing in sustainable business practices. What was once considered a company mission to do social good is now a business imperative. The proof is easy to see.

World Economic Forum, Davos 2020

Our white paper on sustainable business, The Sustainability Imperative, opens with this reminder that sustainability is an unavoidable topic for organisations today. It is also taking on new meanings in today's climate: it is more than corporate social responsibility and reputation and it also goes beyond environmental sustainability. A sustainable business integrates long-term stakeholder value into all dimensions of its activities, including its supply chain, employee relations, community relations, environmental impact and governance practices.

The set of criteria used to assess the impact of business activities and investments on the wider world is known as ESG (environmental, social and governance), and we support businesses to think about how to implement the right actions for their ESG agenda. We find that these activities are benefiting the planet and people, as well as adding value for businesses and investors.

So, where do businesses begin in their sustainability journey, or where should they go from here?

We set this out in detail in the full paper, but here are some key points.

The first step is to assess your current environmental impact and explore the wider landscape, including what competitors are doing, and what/who to target. Actions must be aligned with your business and be authentic to what you do. Long-term commitment must be possible.

Maintaining open and transparent communication with consumers will help, especially if there are bumps along the way.

At the same time, it’s better to show before you tell when communicating about sustainability, and in an era of greenwashing, it is important you have evidence of your efforts before you shout about them.

Sustainability is also a particularly complex area, so you may have to educate your consumers on the issues, your role, and your intentions. Do not tell them what they should do, but what you will do.

Businesses must learn to operate in a more constrained environment as they come under scrutiny from government and consumers alike on their sustainability agenda.

Read more in Credible Corporations.

Read our white paper The Sustainability Imperative.

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