Sustainability is no longer a choice but a profit and ethical imperative

by Amante Abela

The COVID-19 pandemic has forced businesses to look inward at the relationship between purpose and profit. There is a critical opportunity now for all businesses, irrespective of size or industry, to put sustainability at the core of their strategy and operations. For companies that want to achieve a triple bottom line return, the SDGs provide guidance and motivation for solving the wicked problems often beyond the scope of government and private philanthropy. As businesses focus on operational adaptability in the wake of the pandemic, the importance of long-term sustainability and a robust framework for ethical decision making cannot be understated.

Source: abc.net.au

Fortescue Metals Group have explicitly aligned their sustainability strategy with the SDGs, evident in the transparency around the progress towards their targets and pursuit of renewable green hydrogen and ammonia through Fortescue Future Industries (FFI). According to think tank Beyond Zero Emissions, Australia’s green exports could almost triple the value of existing fossil fuel exports by 2050. Fortescue recognises that the same exponential growth in iron ore exports, which grew from contributing only 4% of Australia’s total exports in 2000 to 39% in March this year, can be replicated for green energy opportunities. The heavy industries with large scale energy infrastructure experience are well positioned to facilitate the decarbonisation of the global economy, highlighting the all-encompassing nature of business sustainability.

In the face of changing societal expectations and ethical challenges, the businesses that embrace the SDGs and undertake transformational change will see a powerful flywheel effect that will drive innovation and unlock new opportunities. The question is not so much whether it is possible for businesses to be sustainable, as whether the businesses without a sustainable competitive advantage will survive.