1 Minute Summary of
Sustainability now: Six reasons to act
WHY READ THIS
Understand why it’s imperative to act now and adapt to new sustainability demands.
IN BRIEF
Acting more sustainably has fast become an urgent initiative that organisations need to adapt to. Five shifts have caused this urgency: climate change reaching crisis point, awareness turning into anxiety, sustainability moving from government responsibility to business imperative, disclosure becoming mandatory, and the necessity of collaboration for a sustainable future. These six reasons highlight why it’s crucial for companies to act now.
THE SIX REASONS
A rise in civic engagement and customer actions. Sustainability movements are gaining momentum, with both investors and consumers becoming increasingly concerned about sustainable practices. Studies show that younger generations are more trusting of sustainable organisations, so it’s important to align company activities with societal needs to stay relevant.
Greater regulation. With regulations tightening around disclosure requirements for reporting sustainability factors, organisations need to adapt quickly in the areas they operate. Those who proactively address industry-specific environmental concerns will gain a competitive advantage.
Investors are taking action. Rising numbers of investors are prioritising investments in organisations that positively impact society. This goes beyond just examining ESG ratings, as investors are evaluating what actions are being taken to improve an organisation’s environmental footprint. Such actions need to align with evolving investor expectations.
Capturing market opportunities. Establishing strategies that provide societal and environmental benefits can also deliver business benefits. Organisations that research societal needs can discover new market segments and capture available opportunities.
Developing technologies. The speed of technological advancement means that companies can leverage technology in increasing ways to reduce their environmental footprint. Organisations can drive this shift through the use of blockchain and AI to deliver improved process efficiencies and positive ecological impact.
Driving innovation. Viewing the rising focus on sustainability as a chance to innovate is a healthier perception. Organisations around the world are beginning to understand the urgency of transitioning to greener energy sources, driving innovations in areas such as hydrogen use, digital solutions, and cleaner food production.
THE BOTTOM LINE
The increasing frequency of extreme climate events highlights the need to work collectively in the fight against climate change. There will be increasing pressure from all stakeholders for companies to take action, but those who move now will benefit at both a business and environmental level.
