Proactive approach to sustainanability

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Business is facing increasingly sophisticated consumer attitudes about sustainability issues and will have to respond accordingly, says Tim Nevard, principal consultant and conservationist at the international professional services firm GHD.

Addressing GHD’s one-day forum on sustainability, titled "Our Planet – Leaving a Legacy" in Melbourne today, Nevard told the 1100 attendees that the giant UK retailer Marks & Spencer has invested more than $400 million in a partnership program with the World Wide Fund for Nature (WWF) to ensure the sustainability of their supply chain.

"They know that consumers won’t buy their products if there are question marks about how these products are produced in terms of sustainability.

"Another example is the UK cereal manufacturer Jordan’s Cereals. It has developed a supply chain that ensures that everything from the field to the fork is driven by sustainability. This includes packaging, distribution and production systems. By doing this Jordan’s has increased market share by more than 45% over the past five years.

"Consumer activism is not new, of course. The abolition of slavery came about because of consumer pressure by not buying sugar from the West Indies."

Nevard also cited the example of the environmental organisation, BirdLife International, which represents more than 25 million conservationists. BirdLife International now puts business front and centre to the solution of the global extinction crisis.

"Their 'Species Champion' program sets out to save more than 180 of the world’s most endangered birds and believes business is pivotal to their survival.

"This is happening at many levels. Aside from financial support, companies are getting involved by having their staff act as volunteers, by offering logistical support, and by promoting the programs on their websites and in their products.

The 2007 Australian of the Year Prof Tim Flannery concurs that business has an important role to play. But he was critical of the role some businesses have played to date. "There’s no doubt some businesses have been obstructionist in the way they have approached sustainability.

"But business is powerful, and it needs to harness that power in a constructive manner by playing a positive role in building a well-regulated marketplace."

Flannery says that sustainability issues like climate change are very close to the the tipping point. "Consumers are extremely conscious of this issue and governments and business have to be acutely aware of this. Certainly that’s what the market research is telling us."

The Australian of the Year says the 21st century will demand that we all become "planetary engineers".

“From a consumer point of view, it is demanding a better response from the people we buy our products from. At the same time business has to be proactive, a point that many executives have acknowledged in surveys that show a vast majority agree they need to do more on this issue.

"We all need to be proactive. If we leave it to the politicians we’re not going to solve these critical issues. People have to come to the realisation that the 21st century is going to be fundamentally different from the 20th century."

Nevard says it’s vitally important that business is increasingly transparent about sustainability issues. "The era of corporate social responsibility has arrived, and businesses have to explain what they’re doing and how their processes in terms of sustainability are improving year on year," he says.

GHD employs 5800 people in a network of offices throughout Australia, New Zealand, Asia, the Middle East, the Americas and Europe.

 

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