Ruwandi Perera gathers industry views on how the corporate sector should commit to social goals

Organisations are often called complex, open, social systems to mean that they are born out of society in terms of inputs like people, resources and expertise, and that they contribute back to society in terms of products and services, employment and other outputs.

However, in recent times, there has been much magnification of an organisation’s role in society – corporates are expected to not only give back to society but enhance it and develop it holistically.

Environmental, social and governance (ESG) is an approach to business evaluation to ensure that organisations go beyond profit maximisation, and be responsible for societal wellbeing and environmental protection. Today, it encompasses everything from celebrating inclusion and diversity to saving the planet’s corals, and no organisation is exempted from this responsibility.

We gathered views from industry experts on how corporations must take charge to ensure the sustainability of ESG especially now, when economies, societies and the planet are poised precariously.

Pyumi Sumanasekara 

Partner – Family Business, Board Governance,
ESG/Sustainability and Global Assurance at KPMG Sri Lanka

“ESG is not just a buzzword, which wins awards or improves reputation. Sri Lankan companies haven’t really understood its true value yet. Climate action failure is one of the top risks. ESG initiatives open opportunities in terms of product differentiation, new customers, access to markets and better funding, and managing supply chain risks. We see the need for renewable energy now. What’s next? Clean air? One thing is for sure, as businesses, we either evolve now or risk being irrelevant in the future. Doing what’s right is finally doing what’s profitable too!”

Choliya De Silva

Group Chief Financial Officer – Hayleys
Board member – UN Global Compact Network

 

“ESG strategies are all about risk management and capitalising on opportunities. We must drive powerful and uncompromised ESG standards in everyday decision making to strengthen our business strategies and risk resilience for long-term value creation.

By proactively monitoring and managing ESG related issues and putting in place a systematic, policy driven roadmap with targets, businesses can take meaningful calls to action, which are transparently reported to their stakeholders.

ESG is arguably of greater significance to economies like Sri Lanka, to inspire confidence in global markets at this time, and leverage our positioning as an ethical and sustainable export source. We must strengthen our ESG commitments as critical drivers of business resilience and responsibility.”

Zahara Ansary 

Country Manager – CIMA Sri Lanka

“Corporates need to be more than just showcasing sustainability initiatives – they need to be driving it throughout their organisations and their people – in their DNA. Our youth are now more conscious of what impacts them and their future: they are the upcoming customers – the decision makers.

Therefore, businesses have a critical role to play with their influence and economic power to make that difference where it truly matters – in communities. It’s not just the processes or products that need change but the entire ecosystem with a focus on a planet that’s saved for all. It’s time to build back, better.”

Viraj Dayaratne

Chairman – Securities and Exchange Commission of Sri Lanka

“Best practices in corporate governance have been proven to enhance company performance and lain the foundation for strong businesses. The sustainability of such companies however, will depend on the proactive role they play in integrating the environment and its people as part of  company policy and strategy. A healthy harmony that includes environmental and social sustainability within a business model adds great value.

Building policies and structures based on accountability, transparency, fairness and responsibility will ensure that the interests of the company and its stakeholders are safeguarded at all times. A governance framework that is balanced and receptive towards ESG will therefore enable lasting growth.”