CORPORATE SUSTAINABILITY
Compiled by Yamini Sequeira
FORGING TOWARDS NET ZERO
Malika Samaraweera makes a case for instilling corporate sustainability
Q: What are the critical issues in our natural and social environment that need attention as a business strategy?
A: In Sri Lanka, companies must particularly address water and air pollution, which impacts the health and wellbeing of the workforce and local communities. This can lead to increased healthcare costs and reduced productivity.
Strategies such as investing in cleaner technologies, adhering to international environmental standards, and engaging in community-based environmental and social projects, can inspire the workforce – and benefit both business and the environment.
Q: Considering the dynamics of the labour market, the prevailing economic challenges and climate change-related catastrophes, how should local corporates balance people, profit and the planet?
A: They complement each other as it’s basically about managing the triple bottom line. Companies must ensure that these areas are given equal importance and linked to their strategy.
To aid this process, companies must conduct comprehensive materiality assessments to understand the most important indicators that impact businesses and stakeholders, and implement strategies to address them so as to have a positive impact on the planet.
Adopting a holistic environmental, social and governance (ESG) strategy will aid any organisation overcome the aforementioned issues. By adopting a comprehensive strategy, companies will not only be able to balance these three elements but also foresee potential risks when change is still possible.
Q: Why does corporate sustainability matter?
A: Corporate sustainability is vital as it enables companies to make a positive environmental and societal impact. This encompasses practices such as waste reduction, resource conservation and renewable energy use.
For instance, some companies have indicated how sustainable practices not only reduce environmental impacts but also enhance brand reputation, reduce costs by increasing efficiency and meet the demands of environmentally conscious customers.
Collaborative efforts in monitoring and reporting ESG data are essential in the journey towards net zero.
Q: How important is it to merge sustainability related indicators with key performance indicators (KPIs)?
A: Incorporating sustainability into KPIs across functions enables companies to track their impact effectively. Measuring the carbon footprint helps us understand the broader environmental impact of an organisation’s activities.
Energy consumption metrics guide businesses in reducing energy intensity, leading to cost savings and lower emissions. Similarly, waste reduction and recycling rates align with consumer preferences for sustainable products while social impact KPIs ensure fair treatment in the supply chain.
A KPI that businesses are already using to create actionable sustainability insights is the carbon footprint, which is one of the most important indicators to measure against, as it analyses a broader range of data from both the company in question and its suppliers and customers.
By measuring scopes one, two and three of emissions, organisations can assess how the market presence of their products or services is impacting climate change.
Energy consumption is another measure. Businesses can look into how much energy their operations consume and determine where they can use less, resulting in cost savings for the company and fewer emissions from energy production facilities.
Digital tools are more than capable of measuring how much energy is used in different areas. Applications such as the Industrial Internet of Things (IIoT) can provide valuable information on production energy consumption.
Measuring waste reduction and recycling rates is also important to remain competitive.
To remain in sync with market trends, organisations will benefit from monitoring waste management to ensure that not only production is sustainable but the products themselves fit into a circular economy.
Social impact is another key KPI. In relation to sourcing and the shift in consumer behaviour, businesses must be able to recall information regarding the treatment of suppliers.
ESG reporting too can provide insights into the social impacts of operations.
Q: What green trends do you observe across the manufacturing industry?
A: The industry is increasingly adopting renewable energy, optimising water usage and implementing sustainable waste
management practices.
Recent trends include the integration of Industry 4.0 technologies for greater efficiency and traceability in supply chains.
Q: How should organisations adopt a holistic approach to being environmentally conscious?
A: Organisations should adopt environmental consciousness by actively involving stakeholders such as employees, customers and the public.
This can include employee training programmes on sustainability practices, education campaigns on the environmental impact of products manufactured, and community projects focussed on local environmental and social concerns.
Such an inclusive approach not only fosters a culture of sustainability within the organisation but also builds the momentum to drive broader societal change.
