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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.