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In recent years, the discourse around sustainability has grown louder, with increasing attention being paid to the environmental and social impacts of business operations. Companies across the Asia Pacific region are increasingly recognizing the importance of sustainability reporting and initiatives. However, a study conducted by NUS Business School and Pricewater Cooper (PwC) sheds light on a significant gap between reporting and implementation.
The study reveals a notable increase in the number of companies reporting on climate-related risks and opportunities. Yet, when it comes to demonstrating companies have roadmaps to achieving their net zero targets, only 16% of the targets are validated by the Science-Based Targets initiative (SBTi). Similarly, findings from the South Pole and Carbon Disclosure Project (CDP) in 2021 indicate that only 38% of companies have a specific low-carbon transition plan, with a mere 8% committed to net-zero targets. These statistics underscore the challenges in translating sustainability commitments into tangible actions within businesses. One key question arises: How can sustainability personnel drive adoption and impactful actions toward sustainability goals within their companies? Here are five essential steps to ensure smooth adoption and long-term impact: 1. Align Sustainability with Business Objectives: It is crucial to align sustainability initiatives with the core business model and direction. In the end, a company cannot be considered sustainable if its operations do not generate economic benefits. Sustainability should not be seen as separate from profit-driven motives but rather integrated into the operations of the company. Companies that implement the strategy of "creating shared value" to improve profitability and competitive advantage while also contributing to the social and economic development of the communities and partners with whom they conduct business, demonstrate a judicious application of resources to enhance their market reputation and financial performance. 2. Be a Sustainability Salesman to Management: Convincing management of the importance of sustainability requires clear communication and alignment with the vision of the company. In all likelihood, when consulting with the management of the company regarding the incorporation of sustainable practices into business operations, their initial reaction would be to perceive such actions as an unnecessary expense. Therefore, demonstrating how sustainability initiatives can boost reputation, efficiency, and ultimately profit is essential. One instance of this would be the repurposing of food waste into pharmaceutically viable applications, which would significantly broaden the business prospects of the company. In addition, it can be persuasive to demonstrate the economic benefits of sustainability through the use of the carbon credits market. Nonetheless, this is contingent upon the level of development exhibited by the carbon credit markets and the strength of the regulatory frameworks that bolster their progress. However, this is an effective mechanism for associating financial benefits with sustainability initiatives and demonstrating that sustainability encompasses more than mere expenditures. Moreover, by emphasizing the possible consequences of failing to comply and the dynamic nature of sustainability trends, one can instill a sense of urgency among management, compelling them to prioritize sustainability compliance. This is particularly crucial when the internal processes of the company are sluggish and failing to advance. 3. Integrate Sustainability into Management Systems: An exemplary instance of how an ISO 14001 Environmental Management System (EMS) can facilitate in monitoring of stakeholder and regulatory obligations with regard to environmental compliance of a company, is the maintenance of a comprehensive inventory of such information as an integral document upon the initiation of the EMS. Leveraging existing management systems, such as ISO certifications, provides a structured approach to integrating sustainability parameters. By aligning sustainability goals with established processes for identifying, monitoring, and controlling hazards, accountability is enhanced. Effective deployment strategies, tailored to the size, complexity, and cultural nuances of a company, ensure widespread understanding and acceptance among employees. 4. Identify Champion Leaders and Prioritize Sustainability Topics: Champion leaders within core departments play a crucial role in driving sustainability initiatives forward. These individuals should be identified with a deep understanding of the importance of sustainability to long-term success and be able to persevere in the deployment of projects and articulate its relevance to profitability. By aligning sustainability topics with the priorities of the company and focusing on progressive steps, resources can be optimized for maximum impact. 5. Consider Cultural Factors in Deployment: Cultural considerations, including language, training approaches, and perceptions of regulatory standards and deadlines, must be taken into account during deployment. Irrespective of scale, every company will have a globally interconnected supply chain. Hence, when organizing training in culturally and linguistically diverse geographical locations, the level of success in comprehending the training materials and gaining participants' support for implementing sustainability initiatives is highly dependent on adapting to the language's comfort zone. Speaking with smallholders, for instance, reveals that a subset of them is more proficient in their regional dialects. When the subject matter is novel and trainees possess a limited understanding of it, a top-down training approach is probably more appropriate. Utilizing a participatory approach in this situation will only serve to increase confusion. A further nuance of cultural considerations is the manner in which standards and deadlines are perceived; in some regions, it is uncommon to complete tasks in strict adherence to procedures and deadlines. Understanding an individual’s personal motivations, and characteristics and fostering relationships with others may ultimately aid in ensuring that tasks are completed. Recognizing and accommodating cultural nuances ensures that sustainability initiatives resonate with employees across diverse backgrounds. In conclusion, while the journey towards sustainability within businesses may present challenges, employees can play a pivotal role in driving adoption and impactful actions. By aligning sustainability efforts with business objectives, effectively communicating their value to management, integrating them into existing management systems, identifying champion leaders, and considering cultural factors in deployment, company can unlock the full potential of sustainability and create lasting positive impacts for both the business and society. NUS Business School. (2023, June 7). New Asia Pacific study reveals overall progress in sustainability reporting but critical gaps remain; PwC and NUS Business School. NUS Business School BIZBeat. Retrieved March 25, 2024, from https://bizbeat.nus.edu.sg/press-release/article/new-asia-pacific-study-reveals-overall-progress-in-sustainability-reporting-but-critical-gaps-remain-pwc-and-nus-business-school/# South Pole & Carbon Disclosure Project (CDP). (2022, March 31). Despite growing awareness of climate risks, just 8% of companies in Asia Pacific region have committed to net-zero targets. CDP Worldwide. Retrieved March 25, 2024, from https://www.cdp.net/en/articles/media/despite-growing-awareness-of-climate-risks-just-8-of-companies-in-asia-pacific-region-have-committed-to-net-zero-targets