OneWorldExpress
It is impossible to ignore the increasingly frequent and dramatic environmental disasters around the world – and, significantly, the efforts of governments to take action to prevent further catastrophe in the long-term. The upcoming COP26 conference, held in Glasgow in November, will bring this issue to international prominence. And given the severity of recent disasters in countries like Australia, Guatemala and Sri Lanka, we must be optimistic that substantive change is on the way.
In light of this, a trend had emerged: there is a growing demand from consumers for sustainable practices from business. Estimates that the largest 100 companies produce the majority of global emissions receive significant airtime, and are indeed emblematic of the scale of the issue. In truth, businesses of all scales are increasingly being forced to review their operations, and invest in appropriate improvements to their sustainability.
Of course, many businesses have been reviewing their environmental, social, and governance (ESG) policies for years, for various reasons and with varying success. However, for UK firms, there remains the small matter of the impacts of Covid-19 and Brexit, the pressure of which has forced a considerable number of decision-makers to put their ESG and sustainability policies on the back burner, while concentrating resources on the survival of their business.
Unrelenting pressures
One World Express recently commissioned a body of research delving into the sustainability plans and practices of 365 managers at UK businesses. Indeed, over half (55%) confirmed that their business had prioritised allocating resources towards its survival over the environmental initiatives it would typically have supported.
Inversely, we should consider the 45% who felt they had retained a commitment to sustainability initiatives. There are several potential reasons for doing so beyond altruism; in many cases, it makes sound business sense.
For instance, 44% of respondents reported feeling pressure from customers and clients to adopt more sustainable practices. With global environmental catastrophes becoming more regular, varied, and vivid, consumer awareness of the issues has naturally risen – and in turn, led to a substantial share of the buying marketplace wanting to align themselves financially with companies that do less harm.
In light of such demand, that over two fifths (41%) of respondents to One World Express’ aforementioned research felt implementing greener ESG policies would benefit their business financially is striking; after all, the short-term cost of investing in new manufacturing processes may be prohibitive or reviewing shipping arrangements to select a lower emission method, such as swapping lorry freight for trains, can significantly raise operating costs. Such costs may seem unattainable for many businesses, particularly within the context of post-COVID Britain. Indeed, One World Express’ survey found that just 19% believe they have adequate resourced to at hand to develop and implement environmentally-friendly policy.
That said, UK businesses are beginning to turn a corner, with the easing of lockdown restrictions. Indeed, with trading practices enjoying a gradual return to normality – both with staff returning to traditional working spaces and customers feeling more confident traders in person. This will lead to the broadening of streams of revenue which had contracted due to the pandemic economy, affording companies more resources and greater flexibility about how they are invested.
It should be anticipated that this freedom to invest in the long-term health of the business will see a rejuvenation in serious engagement with sustainable practices; nearly half (45%) of businesses reported having plans to implement greener policies in their business in the coming year, according to One World Express.
Of course, even with serious engagement from businesses across sectors, this is not a change that will happen overnight. The success of any shift towards sustainable business practices will require a great deal of planning and considered investments. However, One World Express’ research suggests definite business appetite for embracing more sustainable and environmentally friendly operations. As such, it is likely that the world will enjoy a sustained and broad embracing of sustainability by businesses over the coming decade.
