Holistic integration of sustainability across a business’ value chain, including operations and supply chains, is gaining traction across the globe. Multifaceted and interlinked challenges of climate crisis, resource depletion and social inequalities are further driving this integration.
This article highlights various ways in which businesses are innovating and evolving to meet the demands of a more sustainable future, while inspiring others to enhance their own Environmental, Social, and Governance (ESG) impact.
Sustainable Resource Management refers to the systematic and responsible stewardship of resources to meet present needs without compromising the ability of future generations to meet their own.
This approach entails optimising the usage of natural resources, mitigating carbon emissions, and incorporating renewable energy sources. It encompasses strategies for waste minimisation, water conservation, and the adoption of sustainable sourcing practices.
IKEA's sustainability efforts focus on reducing carbon emissions across its supply chain, product manufacturing, and business operations.
The company invests in renewable energy to reduce its energy consumption in stores and distribution centres by 80% by 2030, as compared to FY2016 levels.
The company is also developing products that use less resources in manufacturing and operation, are made from renewable materials like bamboo, and have a longer lifespan.
Green building and energy efficiency involve the deliberate design, construction, and upkeep of environmentally sustainable structures.
This concept encompasses the usage of energy-efficient buildings, incorporation of sustainable materials, and the reduction of greenhouse gas emissions as key components in the strategy for creating and maintaining environmentally friendly facilities.
In the past decade, Google has amplified its investments for energy-efficient data centers, with several situated underground to reduce emission footprint.
From 2010 to 2018, the computational workload in Google's data centers surged by approximately 550%, whereas the energy consumption of these data centers experienced a mere 6% increase.
Google is also experimenting with its new office buildings and spaces to meet internationally recognised green building standards like LEED certification and BREEAM.
They use energy management strategies and data analytics to improve performance across their existing facilities. As of 2022, Google had reduced its total Scope 1, 2, and 3 emissions to 10.2 million tCO₂e, and their long-term goal is to run on carbon-free energy 24/7 on every grid where they operate by 2030.
Responsible investment and finance involve the integration of Environmental, Social, and Governance (ESG) factors into financial decisions. This encompasses directing investments towards sustainable projects, refraining from financing harmful industries, and endorsing green bonds or sustainable investment funds.
JPMorgan Chase has committed to facilitating $2.5+ trillion over 10 years, from 2021 to 2030, to address climate change and contribute to sustainable development.
This ambitious target includes $1 trillion to green initiatives accelerating the transition to a low-carbon economy.
Key aspects of these initiatives include financing renewable energy, energy efficiency, and sustainable transportation projects.
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Product life cycle assessment is the systematic analysis of the environmental impact of products from raw material extraction to disposal. This approach entails designing products with an emphasis on durability, repairability, and recyclability to minimise their ecological footprint.
HP's approach to sustainable impact involves innovative product design, using recycled and renewable materials, and improving product repairability, reusability, longevity, and recyclability.
The company has established ambitious goals, including the sourcing of only third-party certified sustainable fibre for all HP brand paper and paper-based product packaging. Furthermore, HP aims to offset the impact on forests resulting from all paper used in their products and print services by 2030.
Ethical supply chain management is the deliberate effort to guarantee that the supply chain operates without engaging in unethical practices such as child labor, forced labor, and environmental harm. This approach includes collaboration with suppliers who uphold ethical standards and embrace sustainable practices.
Patagonia distinguishes itself as a leader in ethical supply chain management, showcasing a robust dedication to fair labor practices, secure working conditions, and environmental responsibility.
The Supplier Workplace Code of Conduct at Patagonia aligns with the core labor standards of the International Labour Organisation (ILO) and requires compliance with local laws in the regions where their factories are situated.
This code of conduct is applicable to every tier of their supply chain, spanning from farm to garment factory. It encompasses policies on diverse topics, including but not limited to child labor, forced labor, harassment, discrimination, wages and benefits, health and safety, environmental standards, community engagement, subcontracting, animal welfare, and traceability.
As a founding member of the Fair Labor Association (FLA), Patagonia's affiliation and accreditation status are central to its social responsibility program. The FLA conducts random audits of Patagonia's supply chain to assess the quality of their factory-monitoring program and identify areas for improvement.
The audit results are made publicly available, fostering transparency and accountability. Patagonia undergoes re-accreditation by the FLA every three years to ensure continuous compliance with the Principles of Fair Labor and Responsible Sourcing.
Patagonia adopts a 4-fold approach to supply chain decisions, which encompasses pre-screening potential new suppliers for sourcing, quality, social, and environmental standards.
This collaborative process involves Patagonia's social and environmental responsibility team working alongside the sourcing and quality teams to conduct a comprehensive evaluation of suppliers, ensuring they meet the company's stringent criteria.
Employee well-being and diversity initiatives constitute a strategic focus on fostering employee health, safety, diversity, equity, and inclusion. This encompasses the implementation of fair labor practices, the promotion of workplace diversity, and the provision of programs dedicated to employee development.
Ben & Jerry's distinguishes itself through its dedicated commitment to community engagement, with a specific focus on education and job training, particularly for its employees. The company has instituted the Ben & Jerry's Core Academy, an innovative program designed to elevate the skills and knowledge of its workforce.
The Core Academy, a collaboration between Champlain College's Robert P. Stiller School of Business and the Berkeley-based Story of Stuff Project, offers a diverse range of courses tailored for Ben & Jerry's employees, with a particular emphasis on entry-level staff who are often new to the workforce.
The courses offered include "Beyond the Job," "Activism Academy," "Leadership with Purpose," and "Social Equity," covering topics such as emotional intelligence, communication skills, social activism, cultural literacy, and leadership development.
These courses are crafted to support employees in both professional and personal development, fostering their capacity to emerge as leaders in their local communities. Although participation in the academy is voluntary, it is noteworthy that scoop shops with academy alumni on staff tend to demonstrate stronger sales trends and receive higher customer service ratings.
Hence, the program not only enriches employees individually but also contributes to the overall enhanced performance of the stores. Graduates are presented with a certificate signed by Ben & Jerry's CEO and the college's program project manager, acknowledging their accomplishments and dedication to personal growth.
Transparent reporting and governance encompass a strategic commitment to openly communicate ESG (Environmental, Social, and Governance) goals and progress, adhere to ethical governance practices, and be accountable to stakeholders. This involves providing clear and comprehensive communication regarding ESG initiatives and their outcomes.
Siemens stands out as a notable example of a company recognised for its transparent Environmental, Social, and Governance (ESG) reporting. The company has consistently achieved high rankings in the Dow Jones Sustainability Index, underscoring its dedication to sustainable practices and transparent reporting.
Siemens' ESG strategy and reporting exemplify a seamless integration of sustainability into its business model. The emphasis on technological innovation is evident, highlighting its pivotal role in driving sustainable development and addressing global challenges, such as climate change.
Embarking on the journey towards sustainable resource management presents both challenges and rewards, as exemplified by the initiatives of various corporations highlighted in this article.
These case studies underscore the significance of adopting a holistic approach, where environmental responsibility, social equity, and economic viability intersect to create a sustainable business model.
In the face of ongoing environmental challenges, the principles and practices of sustainable resource management outlined here serve as a blueprint for businesses to make positive contributions to the planet and society, all while achieving long-term profitability and resilience.Take proactive steps now and initiate the implementation of an Environmental, Social, and Governance (ESG) strategy for your organisation with Apiday!
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