Sustainability is the work of many. It’s the work of all.
The Covid crisis has compelled us to rethink our economic model in terms of sustainability. We must do so with persistence, because the pandemic has exacerbated many of the problems that our society was already facing. I think, for example, of growing economic and social inequality, the depletion of natural resources, health problems caused by environmental degradation, and warfare and waste, among others.
Governments, regulators, experts, NGOs, and even Pope Francis have for years been looking for solutions to a problem that is difficult to solve because it requires a comprehensive approach and the participation of myriad stakeholders. If one of the components involved in sustainable development fails, the chain is broken.
In recent weeks, some initiatives have emerged that make clear the importance of dialogue and agreement between multiple parties to the advancement of sustainability. Three in particular have caught my attention due to their potential impact on the business world:
- The European Commission has advanced certain regulations to help make Europe the first climate-neutral continent. In fact, the new Sustainable Finance Disclosure Regulation (SFDR) was approved just two weeks ago. Without entering into the debate over the regulation’s details, the fact that it sets transparency standards establishes an equal playing field for companies across the financial sector, which in turn prevents sustainability from being limited to the strong will of a few, or falling into the category of greenwashing. This is a clear example of an agreement between many—in this case, EU member countries—that intends to act decisively on sustainability.
- Another publication that is sparking conversation and increasing awareness in the corporate world is “How to Avoid a Climate Disaster”, the new book by Bill Gates. If someone with Gates' business experience and influence decides to focus his efforts on stressing the need to reduce CO2 emissions in order to blunt climate change, the message reaches many people and organizations which otherwise might not take such actions seriously. According to Gates, "although the most important steps to avoiding climate disaster must be taken at the government level, we all have the power to produce change as citizens, consumers, employees or employers". The book offers a richly informative guide and concrete measures to help change the Earth’s ecological future. It is another example of the multi-stakeholder vision, where we all contribute our bit to advance sustainability.
- Finally, there's the letter that Larry Fink, the president and CEO of the fund manager Blackrock, sent in January to CEOs around the world announcing that his company will divest from businesses that present a high risk to sustainability and will prioritize those that achieve zero emissions. His letter sends a signal to the market about the urgency of the environmental problem and the need to think long term. Fink achieves this by appealing to CEOs responsibility for making major business decisions. But he also makes an indirect plea to all investors to enable companies to extend their performance timelines and thereby move toward a more responsible and sustainable business model. Although the letter has been criticized for not specifying how the involved companies will be evaluated, Blackrock, thanks to its influence, has underscored the importance of sustainability and framed what the new relationship between investors and companies will be.
As these three cases show, sustainability cannot be treated as an isolated issue to be approached from a single angle or area. Sustainability belongs to many. Indeed, it belongs to everyone.
Business leaders, thanks to the reach of their actions, have a tremendous capacity to make an impact and encourage positive change in society. With their decisions on procurement, resource management, location strategies and even on remuneration forms, these leaders can shift the trend toward more responsible and sustainable consumption and a healthier relationship with the environment.
Managers do not have to do anything extraordinary to integrate sustainability into their daily work. They only need to remember that the purpose of their companies goes beyond financial results and work performance to aligning the needs of different stakeholders (shareholders, employees, customers, suppliers etc.) in order to achieve a common good.
As Pope Francis wrote in his encyclical, “Laudato Si”, "if we can overcome individualism, we will truly be able to develop a different lifestyle and bring about significant changes in society”.
Sustainability is possible. Will we make it happen?
https://www.gatesnotes.com/Energy/My-new-climate-book-is-finally-here
https://www.blackrock.com/cl/2021-larry-fink-ceo-letter
Materials specialist engineer
4yExcellent compilation of very powerful initiatives from the present moment. Thank you for the article Franz Heukamp!