SUSTAINABILITY & SOCIAL RESPONSIBILITY
SUSTAINABILITY & SOCIAL
RESPONSIBILITY
Exploring latest advances and the stories behind global companies addressing climate change, environmental and social issues.
“The message is clear: purpose–driven companies are the future.”
Marga Hoek, thought-leader, international speaker and author
transfer power to homes means that, when large-scale storms and
hurricanes hit, those power lines are usually affected. “Looking ahead we’re likely to see more
THE DANGERS OF WOKE-WASHING With the promise of stronger social
capital and customer loyalty, it’s tempting for some brands to try to capitalise on this movement without really committing to social or environmental change. The changes need to be more than skin-
deep, they need to be real and sustained, otherwise, consumers and staff will quickly spot the gap between words and actions, says Ms Rivett-Carnac. In the trade, this is known as ‘woke-washing’ – consumers and employees can spot it, and they resent it. “Genuine purpose-driven businesses
will track and measure their social and environmental impact, and communicate it regularly to customers, investors and other stakeholders,” she adds.
THE IMPACT ON GLOBAL BUSINESS Jonatan Pinkse, professor of strategy, innovation and entrepreneurship at Alliance Manchester Business School, says oil and gas companies, car manufacturers and energy companies are already feeling the impact of climate change pressure, but all industries will, in time, have to change and adapt. “Climate change has been impacting
certain industries for decades because those sectors have played a big role in causing climate change in the first place,” he says. “The likes of oil and gas companies and car manufacturers are prime examples. Their contribution towards climate change means they have really felt the pressure from governmental bodies over the past 20 years. “More recently, however, we’ve seen
energy companies start to be impacted. Their reliance on electricity lines to
food and drink companies feel the effects of climate change. Many in the sector are now starting to realise that they have to deal with changes in the natural environment to grow crops and livestock and are working hard to innovate how they produce their goods.”
PROACTIVE CHANGE AND RISK MITIGATION Mr Pinkse explains that the industry that was aware of the effects of climate change the earliest was the insurance sector. It quickly realised that payouts made following a natural disaster caused by climate change, such as flooding or hurricanes, would have a big impact on the business. “Reinsurers, the insurers who insure
the insurance industry, started talking about climate change 30 years ago – a decade earlier than any other sector. Recent evidence has shown that the oil industry was also aware of climate change early on and decided to keep it silent.” The car industry has also been
proactive. “For example, we’re seeing car manufacturers working on the technology needed to power electric vehicles, rather than waiting for the charging infrastructure to be built,” adds Mr Pinkse. He says risk mitigation planning is a
collective responsibility and industries have really started to wake up to that, sharing best practices among each other – a step in the right direction. “The most important thing that
businesses need to do when drawing up an environmental risk assessment is acknowledging that this isn’t just a normal risk,” he explains. Existing risk management practices don’t work when it comes to environmental hazards. “Companies need to develop new ways
of dealing with the risk presented by climate change, which will be unique to each business. It takes real effort, but it’s vital for our environment.”
ESG BUSINESSES WILL ENJOY MILLENNIAL SUPPORT Your staff, customers and investors include Millennials, and it is this generation who are most attuned to the social and environmental impact of the business they work for or buy from. They have a genuine interest in knowing whether a company has a policy on sustainability and look to management to incorporate and demonstrate a sense of value and purpose. Without this, businesses will struggle to attract talent from this generation. “With Millennials, we see differences
in the awareness of issues like ESG and diversity – they seek out services and products that enable them to implement their views,” says Hector McNeil, co-CEO at HANetf, which provides investment products to European customers. Companies with pension funds also need
to think about how they manage pension money. At the beginning of November 2019, the revised EU Shareholder Rights Directive was implemented. This means that every trustee of a pension fund with more than 100 members will be liable for the disclosure of all climate-related links. “The message is clear: purpose-driven
companies are the future,” says Marga Hoek, a global thought-leader on sustainable business, international speaker and the author of The Trillion Dollar Shift, a new book revealing the business opportunities provided by the UN’s Sustainable Development Goals. “Young people, who will be most of the
workforce soon, want to dedicate their time and talents to a company with a soul, a company that contributes to a better world, and that applies to any business sector,” she says. The same applies to Generation Z, which
30 | RELOCATE | WINTER 2019 / 2020
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