Emerging Trends in Corporate Sustainability

Corporate sustainability encourages companies to pursue profit but not at the expense of finite planetary resources or workers' rights, either...

Corporate sustainability encourages companies to pursue profit but not at the expense of finite planetary resources or workers' rights, either now or in the future. It's often divided into environmental, social and economic responsibilities.   

Corporate sustainability isn't the most exciting thing you'll read about today. Stick the word "corporate" to anything, and most people will start yawning, but it is important, especially as companies can (and do) exaggerate their sustainability claims and credentials.    

As consumers, we have a right to know the environmental, social, and economic impact companies have on a local, national, and global level. We all share the same planet, and organisations shouldn't be allowed to compromise the welfare of future generations for short-term profit.  

Corporate responsibility can also make companies more resource-efficient. Finding more effective ways to design, manufacture, create and deliver products or services can fuel innovation and lead to improvements and new products. Younger generations are often more aware of environmental sustainability and social justice. It makes them more discerning about who they spend their money with. A Nielsen study found that 75% of Millennials will change their buying habits in 'favour of eco-friendly products'.   

A strong sustainability policy can also make employees more likely to stay with a company. For job applicants, it makes them more selective about where to apply their talents. Research suggests that 67% of Gen Z will avoid brands incompatible with their morals.    

A robust and genuine sustainability policy could set a company apart. Afdhel Aziz writes in Forbes Magazine that 64% of Millennials say they won't take a job unless the company has a strong corporate social responsibility, and 80% said they'd be more loyal to companies contributing to social and environmental issues.   

It's also essential that companies and organisations take responsibility for the big changes required to tackle sustainability challenges. As individuals, we're told we can make a difference (and we can), but we're often the last link in the chain. It's disheartening to see big companies failing to address their environmental impact while making huge profits. Many of these will also make small sustainability concessions to appease their audience. For many of us, it shows how far corporate sustainability still has to go. There doesn't seem to be a day when a business isn't caught doing something it shouldn't be doing or pleading ignorance about questionable environmental and social practices.   

The onus is on governments to set the legal framework for companies. Still, consumers, clients, and stakeholders also have the power to adapt their buying habits to fit their social conscience.   

  

Emerging Trends in Corporate Sustainability  

Integration of sustainability into a core business strategy  

Sustainability looks great in a company's brand guidelines, glossy brochure, or PDF. However, while sustainability may be born on paper, it must live and grow in the real world as part of a company's actions, systems, and processes. This can be hard work. Getting employee buy-in is vital. Everyone from the very top to the bottom should be aware of the company's sustainability policies. This could be familiarity with recycling systems or other examples of sustainability in action. It can be celebrating success using communication channels or making visible changes to the building or decor to support eco-friendly approaches to working. It could be installing an ECO:POD with electricity-generating bikes or offering volunteer days for community action.   

Employees should also be asked for ideas on improving sustainability or contributing to a company's mission. Feedback is crucial for getting a better understanding of how things really are, not just how they look from further up the ladder. Giving people a voice can also help them feel part of the process, making them more likely to participate and engage with positive organisational changes.   

Setting measurable goals can help, too. You may want to get a waste audit or have a carbon footprint done professionally. This gives you a baseline against which to measure future progress. It's important to report back to employees and stakeholders.   

  

Focus on circular economy models  

A circular economy model is where resources and materials are reused and recycled. Items at the end of their working life are managed out of the chain sustainably. It can be a complicated process, especially for companies with expansive operations, supply and logistics. You may have to work with product designers to create or adapt existing products. You will also need to examine your supply chain, packaging, and materials. There was a time when companies could plead ignorance, but consumers now expect companies to be responsible throughout the entire process. This isn't always easy, especially when balancing costs or dealing with many different contractors. You don't have to change everything immediately. Many companies are working towards better managing supply chains, manufacturing and distribution partners. The goal is progress through improvement. In turn, companies within your supply chain may then adapt their own internal operations and systems to be more attractive to clients looking to be more sustainable.   

And it doesn't only happen on a large scale. Reuse and recycle is something employees can practice in the office. Recycling food and other waste can significantly impact a company's waste management. Office furniture can be reused and recycled, too.   

    

Employee and Community Engagement   

We've already mentioned how important it is to get employee buy-in. It's also important to share brand values and ethos in an engaging way. Showcasing company progress can make it clear that sustainability is working for everyone's benefit. Some companies set up voluntary half-days where employees might clean up a local area or work with a charity to provide manpower. Other companies experiment with locally sourced ingredients in the canteen or hold meat-free days.  There are lots of international days relating to sustainability that companies could take advantage of. World Clean Up Day is held each year in September, but there's almost certainly going to be something environmentally related any month of the year. Community action isn't just great for the immediate recipient or those living and working locally, but it can also provide positive PR opportunities in the press and a way to showcase brand values meaningfully.   

It can also be adapting working practices to make them more sustainable. This could allow remote and hybrid working to reduce people driving to work. Some companies find it helpful to nominate a sustainability champion. This is someone passionate about the environment who can oversee new and existing sustainability practices.   

  

Clean energy and tech  

Companies are now starting to look at ways of not only reducing their energy consumption but also generating their own power. Solar panels have been popular for some time and can provide businesses with clean electricity. Heat pumps and wind turbines are other options. The issue is that sometimes companies rent their buildings, making it difficult to adapt existing spaces without the landlord's permission. It's why corporate teams are putting the ECO:POD in their offices to support sustainability and employee wellness.   

  

Sustainability reporting   

As corporate sustainability becomes more prevalent, clients, customers, stakeholders and employees demand more transparency. Companies are now incorporating a standard reporting framework into their strategies. Sustainability reporting can help build trust, especially with many other companies greenwashing their credentials. Reporting serves several functions. It helps companies measure their progress over months and years. It also gives them a measure of proof to back up any sustainability claims used in marketing or in-house communications.   

   

Supply chain transparency  

It's not just about the end product. Consumers and stakeholders may want to know that standards have been met throughout the manufacturing and distribution process. This isn't always easy or a priority for those higher up in the business. It can be expensive and time-consuming to take responsibility for the actions of those further down the chain. New systems and processes may have to be implemented. Existing systems and processes may need to be adapted or terminated. The benefit of fully understanding your supply chain is that you can better recognise environmental and social risks that could impact your production. This can help you identify potential problems and mitigate them before they become more significant. Ignorance is certainly not bliss if something disrupts your supply chain and costs your business time and money.   

  

Corporate sustainability is easy to talk about but harder to execute. It can be difficult to integrate into existing systems and processes. You may also find it challenging to convince employees to adapt their working practices to support a new or more sustainable approach. However, companies must have a robust and successful corporate sustainability culture. Not only is it the moral thing to do, but it can also help businesses attract and retain customers and employees, contribute to a positive brand image, make processes more efficient and help companies identify potential environmental and social risks that could later create issues for the business. Corporate sustainability shouldn't be seen as a one-and-done approach but as an adaptable and evolving process, continually working to reduce the negative social, economic and environmental impact of doing business today and in the future.   

The ECO:POD is a self-contained exercise space that uses electricity-generating bikes to power employee devices and hot-desking areas.   

 

  

  

  

 

 

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