by Christopher Laksana
Not only can businesses be sustainable, but it is now required of them. COVID-19 and the climate crisis have formed an acute awareness amongst investors and consumers that firms need to move beyond corporate social responsibility towards integrating sustainability into their business decisions. Corporate and social purpose are now intertwined; in recent years, environmental, social, and governance (ESG) factors have been positively linked to a business’ financial performance in over 2000 empirical studies.
The UN’s 17 Sustainable Development Goals (SDGs) have commonly been used by firms to achieve this end; ultimately, sustainability is about the ethical development of society, as encompassed by values such as human dignity (SDG 1), equality (SDG 10), and justice (SDG 16). From Amcor to ANZ, Woolworths to Woodside Petroleum, all companies have a role in furthering the UN’s SDGs.
But can inherently ‘unsustainable’ industries be sustainable? Take mining, for example, which relies upon the Earth’s limited resources — a company such as Rio Tinto (who do not necessarily have the best sustainability reputation) can still contribute to the SDGs by improving the wellbeing of workers and affected communities (SDG 8), and by supplying materials that can drive innovation (SDG 9). So perhaps the answer is yes, whilst acknowledging that sustainability inherently requires trade-offs between its social, environmental, and economic dimensions. Nevertheless, while the SDGs can provide direction and inspiration, they also need to be put into practice.
Being sustainable is no longer a way to stand out, but a necessary condition of doing business — a social licence to operate. Given the prominent role that businesses play in our economy and broader society, it is imperative for them to take meaningful and immediate action against pressing issues such as climate change and social inequity.
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