Business

Operationalising Sustainability from the what to the how!

The Business and Sustainable Development Commission identified the Sustainable Development Goals (SDGs) as a key driver of economic growth, potentially accounting for USD 12 trillion in new market value. In response, global business is moving quickly to innovate products and services capable of addressing SDGs in a way that also delivers economic growth. At the same time, investors are increasingly recognising that company risk and growth, and the cost of capital, are closely tied to an effective understanding and efficient management of environmental, social and governance (ESG) issues.

The result is that, “climate change risk, human rights, supply chain management, diversity and safety are now board-level topics. All require a depth and breadth of understanding, technical expertise and commercial awareness to deliver integrated solutions that create long-term business value,” says Lerato Sithole, Managing Partner, ERM Southern Africa, at the launch of ERM’s Sustainability Report for 2019.

ERM, a global provider of environmental, health, safety, risk, and social consulting services identified, in 2018, four global megatrends likely to have a significant social, economic, political and environmental impact on business and society for decades to come. The megatrends identified in the 2018 Report included: climate change, digital transformation, population growth and emerging middle class.

Understanding these trends, and how they impact the intersect between business, broader society and the environment is, “we believe, a critical first step in developing an informed and effective business response to the SDGs,” says Ms Sithole.

Since the focus for many firms today has shifted from the ‘what’ to the ‘how’, ERM clients are increasingly seeking advice on how to ‘operationalise’ sustainability, by structuring their businesses to deliver on key sustainability targets as part of everyday operations. ERM’s ability to provide strategic consulting and technical services in the environmental, health and safety, risk and social areas means, “we are uniquely placed to support clients operationalise sustainability in a practical way,” adds Ms Sithole.

To this end, in this year’s Sustainability Report, ERM focuses on three key topics – climate change and energy transition, tech-enabled innovation, and the circular economy. All three are central to understanding how business can articulate a response to the challenges and opportunities highlighted by the megatrends identified in 2018. For each of the three topics highlighted in 2019, the report shows how ERM’s work with clients over the past year helped companies, “improve performance, operate more efficiently, meet compliance obligations, and engage effectively with stakeholders – while also meeting expectations for disclosure, environmental and social stewardship, and keeping workers and local communities safe,” says Ms Sithole.

ERM’s stated purpose is to shape a sustainable future with the world’s leading organisations. “We frequently work with companies that have the biggest impact on the planet –including those in the power, chemical, technology, oil and gas, mining and manufacturing sectors,” says Ms Sithole. In addition to making a significant contribution to sustainability through its client work, ERM’s strong focus on operationalising sustainability in its own business – setting performance goals in line with the Science Based Targets initiative, for example – demonstrates, practically, how to align SDG and business outcomes.

About ERM

ERM is a leading provider of environmental, health, safety, risk, social consulting and sustainability-related services. ERM employs more than 5,000 people in over 40 countries working out of more than 160 offices. ERM delivers long-term sustainability by supporting clients manage the challenges and leverage the opportunities presented by a rapidly changing business, environmental and social world.

In the business of sustainability for over nearly 50 years, ERM assists clients around the world, including a large number of Fortune 500 companies, understand and manage their environmental, health, safety, risk and social impacts. Working across, amongst others, the Oil & Gas, Mining, Power, Manufacturing, Chemical and Pharmaceuticals sectors, ERM supports clients develop operational models that align business with environmental and social goals.

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