Corporate sustainability in 2017

I’m in the jury for the ‘Best Swedish Sustainability Report’ award and we are announcing the 2017 winner tomorrow. Because of this jury work, I have been reading a lot of sustainability reports this summer and see some current trends.

On the positive side, companies increasingly work with sustainability in their core operations. Compared to when I started my research in this area eight years ago, there is much less reporting on how much money companies give to charities. These days, companies understand that their main focus should be on the social and environmental impact of their business operations. This is where they can really make a difference. Anyone can give money to a charity, but only the company can make demands on its suppliers and reduce the carbon footprint in the operations.

Another trend is that companies increasingly connect their work to the UN sustainable development goals. This can of course be seen as a way for companies to ‘glorify’ their work. Nevertheless, the UN goals may help companies to think about the global challenges and their role therein. It’s a way to connect everyday work to a bigger picture. Similarly, some companies describe how their work contributes to the Swedish state’s sustainability plan ‘Agenda 2030’ (which, in fact all Swedish state-owned companies should do).

Still, there is more work to be done. Sustainability, in its essence, is about the long term perspective. According to the 1987 definition, it’s about future generations. In this respect, the old criticism that companies’ sustainability reports are not really about sustainability at all is still valid. When you set goals for 2020 you are not considering future generations. When you mainly report what you did last year you do not see the longer time perspective. As a company you should ask how your business operations will affect the life conditions of future generations. If there is no unpolluted water left, how will it affect future generations? No biodiversity? Unfortunately, very few companies think in terms of such time perspectives (yet).

Still, there are reasons to be optimistic. A few companies stand out and show that things can in fact change fast. Swedish textile company Ellos isn’t known for their sustainability work. However, in two years they have gone from sourcing only conventional cotton to 46% ‘better’, organic or recycled cotton. By 2020 it should be 100% and, at this pace, they will definitely make it. If all companies went from 0 to 50% in one to two years it would help the environment tremendously.

From 2018, all large Swedish companies will report on sustainability (a Swedish adoption of the EU directive). I am excited to see how this will affect business practices.

 

Leave a Reply

Your email address will not be published. Required fields are marked *