As the Rio+20 conference reports on progress towards a sustainable world, an increasing number of companies are realising sustainability is good business sense,writes Markus Wildi
A In June, 200 countries, including the UAE, met at the United Nations's Rio+20 Conference on Sustainable Development to assess the progress made in creating a more sustainable world, and look at what needs to be done over the next 20 years.
The outcome is detailed in The Future We Want, an in-depth report that, among other things, acknowledges that sustainable development depends on the "active engagement" of industry in both public and private sectors.
Rio+20 member states have also called on the private sector, in particular, to "engage in responsible business practices", while also acknowledging the need for accurate sustainability reporting as part of regular corporate reporting cycles.
It is noteworthy that in the Middle East, countries such as the UAE are already leading the way in encouraging and nurturing sustainable practices by actively engaging with industry. Groundbreaking initiatives such as Masdar are not only setting new global standards in the environmental aspect of sustainability but are also helping to incubate new technologies that have potential applications around the world. The country's recently launched economic development platform - "A green economy for sustainable development" - is also an excellent indicator of a firm commitment by the country to pursue a sustainable agenda.
The definition of sustainability, from a business perspective, has long been debated but it can be said with certainty that it means more than addressing our own environmental and social footprint.
It means that businesses, large and small, should make every decision with the future in mind, reaching beyond their fences to be a driving force for positive change.
It is said that sustainability begins by ensuring that our own footprint is light, but it reaches its full potential only when it delivers solutions to the problems faced by society. In other words, taking on a sustainable approach to business should also translate into addressing the greatest needs of people across the globe, tackling challenges such as energy, climate change, water, food, housing and health.
Yet focusing on the most basic premises of sustainability - economy, efficiency and reliability - one cannot help but realise that sustainable business practices are, in fact, good business practices.
For instance, when Dow launched its 2005 environment, health and safety goals in 1996, when sustainability wasn't quite the buzzword it is today, it was one of the first initiatives of its kind.
When we took stock of the results a decade later, we found that the exercise had made a tremendous impact on lowering our environmental footprint. Waste was reduced by 83 billion kilograms and we saved 900 million British thermal units of energy, enough to power about eight million homes for a year.
Significantly, we also found the company had saved US$5 billion (Dh18.3bn) in the process.
This was a clear indication that sustainability makes excellent business sense and has a tangible, triple bottom line impact. As a result, we've embedded it firmly at the heart of our growth strategy and established our 2015 sustainability goals, which set even more ambitious targets for us to achieve.
It is heartening to see that we are not alone in realising the business benefits of sustainability.
Last year a McKinsey Global Survey on sustainability in business revealed changing attitudes over the span of just one year. While corporate image and reputation was cited as a major reason for addressing sustainability in 2010, one third of the respondents in 2011 said that the need to improve operational efficiency and lower costs was now a key consideration driving adoption. The study also noted that executives have started to recognise that sustainability makes "a positive contribution to their companies' short and long-term value."
While there is some work to be done to ensure that we evolve from "widespread" to "universal" employment of sustainable business practices, it is safe to say that industry is moving in the right direction. By all accounts, the proactive adoption of sustainable business practices for the right motives is a fast-emerging trend. If the number of companies signing up for initiatives such as the World Business Council for Sustainable Development is anything to go by, it can be argued that businesses of all sizes are more conscious now than ever before of their extensive responsibilities to the community and to our planet.
Looking back at the history of human development, economic progress almost always came at a cost to the environment. But the fact of the matter is that we have one planet, with limited resources, and to continue living like we have is not an option.
Adopting sustainability in its truest form, however, presents industry with the opportunity to fulfil its socio-environmental responsibilities, without sacrificing innovation, advancement and growth.
Markus Wildi is the president of Dow Middle East
