It is now common knowledge that the world is facing many pressing environmental and social hardships today. It is no secret that businesses of all sizes can play a role in the mitigation of these issues that will result in high standards of living for people on the globe. In fact through collaborations, they can improve the quality of life for more people. Today, the role of business goes beyond just business, and its drive should be to nurture an environment that develops talents to resolve complexity and overcome challenges we are facing.
In 2021, as the world lifted itself out of the COVID-19 pandemic and the challenges that came with it, organizations embarked on a journey of becoming sustainable entities by embedding sustainability strategies in their business operations. They adopted the three sustainability pillars of people, planet and profit which are considered together with the United Nations Strategic Development Goals (SDGs). Sustainability roadmaps fall under the three pillars of ESG (Environment, Social and Governance).
The question of how businesses can be sure of sustainability in today’s world of de-globalization and decentralization keeps showing its head. How can companies survive in this era de-carbonization and energy? How can they thrive in the era of AI, digitization and technology? How can organizations deal with geopolitical issues, changing demographics and debt? These are the emerging issues for businesses of today.
Organizations of whatever size and nature must put sustainability at the centre of their businesses. As companies chase performance, they need to do it as they deliver social impact and corporate governance, while creating shared value for consumers, society, employees and shareholders. They must be committed to operating sustainable and environmental friendly businesses.
It is agreed that the business environment is changing fast and that the sustainability challenges facing the world are evolving even faster. That calls for businesses to be committed to reducing their environment footprint and incorporating sustainability measures in their business strategies because sustainability is a key market driver and growth lever for them.
Businesses have a mandate to accord decent and sustainable livelihoods to millions of people who use their products everyday. They need to enable entrepreneurship for sustainable and inclusive economic growth and development of nations they operate in. Organizations need to be purpose-driven. Long-term success can only be achieved through responsible and ethical corporate governance and positively impacting the society and environment. Their actions should be founded on mutual trust, and steered by principle of shared values.
The vision for sustainable and responsible business involves inculcating a culture of sustainability; people and culture, innovation and digital transformation, care for the environment, corporate governance and support for local communities. With laser focus on these areas, and collaborating with partners, businesses can deliver more value to not only to their customers, but also their employees, strategic partners, investors and the society at large.
Today, sustainability is no longer an option. Businesses reap the benefits that accrue over time. They include growing business resilience, improved reputation and brand value (equity), optimization of capital, customer loyalty, enhanced risk management, improved financial performance, regulatory compliance and licence to operate, attracting and retaining talent and long-term sustainable growth. It is now apparent that sustainability is reshaping and influencing stakeholders, placing environmental, social and governance issues at the fore front.
To chart a sustainable future, companies should develop their pillars of sustainability that will guide them towards 2030 and beyond. These pillars will not only transform them, but will also transform our world.
ENDS
Raphael Atanda works at Car & General (Kenya) Plc as Head of Communications
raphael.atanda@cargen.com
