CORPORATE STRATEGY
Compiled by Yamini Sequeira
SHAPING GREEN ECONOMIES
Isuru Gunasekera urges businesspeople to source ethically from local suppliers
Q: What do you perceive as the most pressing sustainability challenges facing the economy today?
A: The primary challenges include climate change impacts such as severe weather, rising temperatures and resource scarcity. Water scarcity, waste management and loss of biodiversity add to the local economy’s burdens.
Many industries still lack the infrastructure for sustainable practices while limited policy support exists for waste reduction and renewable energy adoption. Addressing these issues requires coordinated efforts between the state and business community, to build sustainable infrastructure and encourage environmental stewardship.
Q: How can corporations better integrate sustainability into their core business strategies?
A: Sustainability can be integrated by embedding it into each stage of the business model.
This includes setting clear sustainability goals aligned with business objectives, and focussing on areas such as renewable energy, waste reduction and ethical supply chains.
Transparency and governance are key since regular reporting on sustainability practices helps build trust with stakeholders. It is also critical that all new business ventures have a detailed sustainability risk analysis and road map prior to the initial stage of approvals.
Additionally, employee training and a culture that values sustainability can encourage a more proactive approach to responsible business practices.
Q: What trends do you foresee in sustainable practices among Sri Lankan businesses over the next few years?
A: Local businesses are likely to focus on renewable energy adoption such as solar and bioenergy due to rising energy costs.
There’s a growing interest in circular economies, reducing waste through reuse and recycling and, a shift towards sustainable packaging with more companies seeking alternatives to single use plastics. More businesses will pursue green financing options for projects with a focus on environmental impacts. These trends reflect a move toward sustainability as environmental and economic priorities.
Q: What types of risks do you believe are most critical for businesses?
A: Environmental risks are critical as they affect resources, supply chains and operational stability. Reputational risks are also important with companies under increasing scrutiny for their environmental, social and corporate governance (ESG) practices.
Companies face regulatory risks, as governments across the world are implementing stricter environmental and labour laws. Additionally, digital security risks are essential too as businesses rely on digital systems for sustainable practices.
Q: How can organisations balance risk management with innovation especially in the face of sustainability challenges?
A: This requires a proactive approach to identifying risks and exploring sustainable solutions. Predictive data analytics can help companies foresee environmental impacts on supply chains, while partnerships with startups and academic institutions can lead to innovative and sustainable solutions.
Fostering a corporate culture that supports calculated risks for long-term gains can enable local businesses to pursue sustainability without compromising stability.
Q: What strategies should businesses adopt to strengthen their resilience against external economic shocks?
A: Businesses should diversify their supply chains and markets, to avoid overreliance on any single source and enhance resilience.
Building digital capabilities for remote operations ensures continuity during disruptions. Scenario planning also prepares companies to respond to sudden changes.
Q: How can businesses ensure that their sourcing practices contribute to the sustainability of the local economy? And how can technological advancements enhance sourcing strategies for greater sustainability?
A: Companies can support sustainability by sourcing materials from local suppliers who prioritise ethical and environmental standards, reducing emissions associated with transportation.
An increased emphasis on collaboration within the value chain will also emerge.
Organisations will need to actively guide and encourage their partners to adopt sustainable practices, creating a collective impact on industry. By working together, companies can share knowledge, resources and innovations that drive sustainability forward. Innovation will play a key role in sourcing practices with companies investing in research and development, to find new and sustainable materials and methods that reduce environmental impacts – including biodegradable materials and circular economy principles.
Q: What future trends do you anticipate in sourcing practices that will impact the economy and its sustainability?
A: ‘Local first’ sourcing is a growing trend as companies prioritise local suppliers for stability, increasing community relationships and reducing carbon footprints. As consumers and regulations demand more accountability, transparent and responsible sourcing will become essential, encouraging sustainable practices across the economy.
Digitisation of the supply chain will increase transparency and efficiency. It is also important to actively encourage and guide partners in the value chain to adopt best practices within the sourcing company.
Businesses can invest in training programmes for local suppliers to help them adopt sustainable practices. By providing resources and support, they can elevate the sustainability standards of their supply chains.
Advanced tracking systems can also help trace the origins of materials, ensuring they meet sustainability criteria. And finally, technologies such as blockchain can create an immutable record of the supply chain, which will improve accountability and trust.