“You may think that we are at least half-way there, but we are far from it” is a general sentiment that is shared by everyone when it comes to gauging preventive measures that are being used to slow down climate change. Despite the fact that it is a topic that is vastly discussed and is under scrutiny day in day out, humanity is barely touching base with suggesting solutions or working on remedies to avert a natural catastrophe. Unfortunately, businesses are no better.
While there are stockpiles of projects and proposals that are put forth to combat adverse effects on nature, there are only a handful of nature positive businesses that take their role seriously. Most of the solutions look good on paper, but in practice they fall short because either they are quick-fixes or are too ambitious to be executed.
To put it into numbers, in an article published by CNN (in June 2023) about how large companies are not showing any progress in taking necessary preventive measures, Hanna Ziady points out how according to the primary provider of sustainability data, only 22% of the 500 largest companies globally, based on market value, are taking actions that are in line with the goals of the Paris Agreement. Even Though it is an increase in comparison to the 18% of companies in 2018, it is still very measly.
(The Paris Agreement’s objective is to restrict the increase in global temperature to a 1.5 degrees Celsius above the levels present before the industrial revolution).
Roughly 45% of the big companies, that is nearly half, are following a trajectory that would result in global warming of at least 2.7 degrees Celsius. A level of warming that is disastrous for billions.
The impact of climate change has become palpable. Greta Thunberg’s concerns have largely fallen on corporate deaf ears but it shouldn’t be the case. Everyone needs to be taking preventive measures to reduce the burden on nature, especially businesses. Because there will be no business on a planet that is murdered. All businesses rely on nature for resources and the eco-system renders services to them without a break. While there may be Corporate Social Responsibility (CSR) projects in place that prioritise creating a positive impact on the environment, they may not be enough. Not in the long run.
Sparing a thought to nature
Giving nature a stake in your business implies the incorporation of environmental considerations and sustainability principles into your company’s operations as well as decision-making processes. A concept as such acknowledges that a business is not isolated from nature and the environment but is rather interconnected with it. Therefore, companies need to work towards achieving a relationship with nature where they give to it ‘N’ number of times more than they take. It is reported that the part that business plays is vital to delivering a nature-positive world because as the World Economic Forum states “over half of the world’s total GDP is at moderate or severe risk due to nature loss”.
A few ways in which businesses can take a step in the right direction and create a positive environmental impact are:
- Businesses could create a positive environmental impact by conducting an Environmental Impact Assessment (EIA). Thorough research needs to be done to understand and recognize how a business and its activities affect the surrounding ecosystems, wildlife, and natural resources. This also includes conducting an assessment of materials that the business will be using. According to Business For Nature, this involves ensuring that “materials across the production and consumption value chain- from the extraction of raw materials to post-consumer waste is assessed”.
- Adopt sustainable practices and resource-efficient processes to lower the ecological footprint of the business. This will require the reduction of energy consumption, using eco-friendly materials, implementing recycling programs, and optimising water usage.
- Biodiversity conservation: Protecting and preserving natural habitats should be second nature to businesses. To do this, a productive measure that can be followed is creating green spaces or even participating in conservation initiatives
- Sourcing resources and materials that the business uses responsibly. This entails the task of making sure that the suppliers are in line with sustainable practices and do not contribute to deforestation, habitat destruction, or other harmful activities.
- It is a given that the Corporate Social Responsibility programs run by companies need to inculcate environmental initiatives. This includes supporting local communities and environmental organizations that work toward conservation and ecological restoration.
- Carbon offset and Renewable Energy: offset carbon emissions by investing in renewable energy projects.
- Transparent reporting: Providing transparent reporting on the business’s environmental performance, including data on emissions, water usage, waste generation, and other relevant metrics is integral if the business is considering giving nature a stake.
- Educate employees about the importance of sustainability efforts. Encourage environmentally responsible behaviour within the workplace.
- According to Business for Nature, it is also important that businesses call for policy recommendations to reverse the nature-loss that has already happened. To do this it is recommended that a business, “publicly recognizes the planetary emergency and commits to both reversing nature loss by 2039 and keeping global warming below 1.5 degrees Celsius. Furthermore, it is wise to adopt global targets and indicators informed by science to reverse the loss of nature”.
A considerable number of companies have already implemented the aforementioned measures whereas some are not all the way there yet. The outdoor clothing company ‘Patagonia’ made headlines in the year 2022 for claiming that planet earth is their only shareholder. Yvon Chouinard, the founder and the former owner of the California based business-Patagonia, has decided to transfer 98% of the shares that the company held to a new environmental organisation called the Holdfast Collective. The rest of the 2% of the retailer’s shares were then transferred to the ‘Patagonia Purpose Trust’ which was an initiative that started with the intention of guiding the company’s environmental and philanthropic principles. And they are staying true to their cause. This can be taken as a great example of how nature should be given undivided attention by businesses if they want to continue as unproblematic entities.
A few compelling reasons as to why going green is considered to be a good idea are:
The aspect of mitigating risks. Climate change and environmental degradation pose significant risks to businesses across various industries. These risks lead to issues such as disruptions in supply chains, regulatory changes, and reputational damage. If these problems are not addressed adequately and ethically, the business will come to a halt.
Long-term sustainability is undoubtedly a major factor that proves why it is of paramount importance for a business to be concerned about nature. To ensure the longevity of a business, preserving natural resources and ecosystems is a prerequisite. Especially to safeguard the availability of vital resources for the business.
Apart from reasons such as being genuinely concerned about nature and wanting to take part in preserving the environment, a few other compelling reasons could be ones like having a competitive advantage, reputation and brand value, regulatory compliance, and access to capital. Embracing sustainable practices and proving to be an entity that is committed to environmental responsibility can give your company a competitive edge over the competitors. The current consumer market is extremely conscious (in a good way) therefore environmentally responsible companies have the upper hand in attracting more customers. Additionally, a large number of governments are implementing or considering implementing rigid environmental regulations to address climate change and protect natural resources. By making nature a large part of the business plan, it can ensure compliance with current and future environmental laws. This will keep you safe and sound and away from the boundaries of the legal radar.
All in all, making nature a stake in your business may not merely be a moral imperative but also a strategic requirement. Therefore for the sake of everyone’s well-being, especially that of nature it is not a want but rather a need to prioritise nature.
(Sandunlekha Ekanayake)