As we move into 2020, existing pressure on corporate entities to be more sustainable is set to increase. Climate action is one of the most pressing global issues of our generation. Cone Communications found that 63% of Americans are hopeful that in the absence of government regulation, businesses will take the lead to drive environmental and social change. Increased public pressure and changing market trends have led many experts to forecast new government regulations inclusive of environmental factors. The Inevitable Policy Response (IPR) predicts the regulations to be in force as early as the mid-2020s.
According to the 11th annual State of Sustainable Business survey, released by the Business for Social Responsibility (BSR), more than half of the 125 global companies that took part in the survey cited sustainability as a top priority of the CEO. Even with the sole consideration of environmental impact, it is no surprise many industry leaders will turn their attention to corporate sustainability in 2020. The concept of corporate sustainability also extends outside of climate action. The BSR survey also found:
“…climate change, ethics and integrity, diversity and inclusion, and human rights remain the top sustainability priorities for companies.”
The 11th annual State of Sustainable Business survey
When businesses of all shapes and sizes are armed with a comprehensive understanding of sustainability in action, they are better able to meet the consumer, employee and stakeholder demand for sustainable business practices. In this article, we share some exciting case studies of how corporate sustainability moves across three key industries; fashion, food, and tech. Even if your business falls outside of these areas, our handpicked examples are sure to inspire your company in the area of corporate sustainability.
Let’s take a closer look.
Corporate Sustainability Moves: An Overview
Corporate sustainability is rapidly evolving. So to help smaller organizations with less manpower stay ahead of the curve, here is a general overview of some key changes set to occur through 2020 and beyond. From HR practices to supply chains; all facets of a business fall under scrutiny when it comes to corporate sustainability. Here are some bold moves set to take place in larger corporations.
Supply chains are forecast to become “circular” with a clear focus on reducing carbon emissions and plastic waste. Organizations are expected to consider the impacts of the whole production process from start to finish. This type of end-to-end supply chain includes ethical sourcing/labor practices, appropriate health and safety procedures for workers, and a clear vision of where a product ends up post consumption.
Employee recruitment will also be considered an integral part of corporate sustainability. Forbes predicts industries such as financial services will break from the norm and look to rehire previous employees that left their talent pool. This will create a “hire to retire to rehire” model. Meaning, previous employees can get straight to work, rather than redoing all of the onboarding processes. The HR department’s time is then freed up to work on other sustainability issues within a given organization.
Flexible working will move to the forefront of the workforce as organizations take lessons from remote, temporary or part-time positions. Employees will increasingly request the ability to work from anywhere, at any time for the good of their overall wellbeing, and to create a healthy work-life balance. As large corporations explore sustainable workforce models, employees in rural areas, those with disabilities, or those caring for sick loved ones, will be able to access the workforce as digital nomads. At Useful Views Philanthropy, we collaborate with a digital nomad from a seaside town in the UK. We would be happy to provide advice on how to make an exciting digital partnership work!
Corporate Sustainability Moves in the Fashion Industry
Disposable fashion poses one of the greatest threats to the environment. Fortunately, in the last decade, the fashion industry has made great strides toward sustainability. In 2019, heavy hitters such as H&M Group, Adidas, and Burberry pledged to set net-zero emissions goals, cut plastic pollution, and source 100 percent renewable energy. This corporate sustainability move will be achieved by converting linear supply chains into circular ones and using the fashion industry’s combined global reach to help tackle climate change.
With more than 80% of mainstream investors now considering environmental, social, and corporate governance (ESG) coupled with Sprout Social, finding that 66% of consumers expect brands to discuss critical social issues, the fashion industry is readily exploring other areas of corporate sustainability. Startup brands such as TOMS and Bombas are built on giving back to local and national communities; matching all units sold with units donated to people in need. Companies can also make a stand on the push for social change as a move toward corporate sustainability. For example, in 2019 both Gucci and Levi’s publicly supported the issue of gun control.
Corporate Sustainability Moves in the Tech Industry
As technology continually evolves, old products are replaced by the latest gadget, which means many end up in landfills, creating waste and removing valuable metals and minerals from circulation. Like many industries, supply chains (especially the pursuit of rare minerals) are an issue for tech companies. To combat this, much of the tech industry is embracing sustainability into their business models. A new form of “eco-innovation” allows notable tech firms such as Samsung, Intel, and Apple to make great strides toward sustainability.
Samsung created a more sustainable supply chain in 2012 by establishing a system to ban the use of conflict materials. By 2018, all suppliers only sourced through the Responsible Minerals Assurance Process. Dell’s 2020 Legacy of Good Plan reiterated:
“By 2020, we expect to reduce the energy intensity of our product portfolio by 80 percent, use only packaging that is 100 percent compostable or recyclable, and rally our global workforce to give 5 million volunteer hours to the communities we call home.”
Dell’s 2020 Legacy of Good Plan
Corporate Sustainability Moves in the Food Industry
Food consumption is one of the largest and fastest-growing sources of pressure on the environment. With key sustainable food trends such as organic produce, local sourcing, and a drive for plastic reduction set to continue into 2020, companies within the food industry aim to be more sustainable. The food industry is gradually working to reduce their environmental impact by evaluating the full lifecycle of their products, educating consumers on food waste strategies, and supporting consumers in other areas such as the appropriate recycling of packaged goods.
An innovative example in this area comes from Patagonia Provisions who use Kernza in their beverage production. Kernza growth preserves the integrity of topsoil and removes more carbon from the atmosphere. The food industry is also partnering with tech companies such as SafetyNet to make the fishing industry more sustainable. Their work helps to protect one of the planet’s most precious resources, the ocean environment.
At Useful Views Philanthropy, Corporate Sustainability is our specialty, and we would be happy to discuss creating a robust and effective strategy to help your business to excel in this area in 2020 and beyond.