Topic 3: Sustainability & Business

Question 1

What is the Business Case?

Answer 1

It is a company’s reasons to integrate sustainable practices into their operations

Question 2

What are some reasons for a company to integrate sustainable practices?

Answer 2

1. To reduce cost
2. To preserve resources
3. To comply with legislation
4. To enhance reputation
5. To differentiate
6. To attract quality employees
7. To satisfy customer needs
8. To meet stakeholder expectations
9. To attract capital investment
10. To capitalize on new opportunities
11. To increase transparency

Question 3

Give a example of a company that preserves resources in their business operations (No.2)

Answer 3

For reason 2, preserve resources. One example is Hush Candles that makes their candles from soy wax, that burns cleanly and is non-toxic. They also use recycled glass jars and encourage customers to reuse or recycle them after the candles are burned to preserve the resource base and reduce waste

Question 4

What are some common attitudes of companies who are not yet on board the sustainability journey?

Answer 4

• Rejection: Some companies reject sustainability as they are unaware of it, do not see its relevance to their business
• Bare minimum: Companies that only comply with the minimum requirements but don’t have a sustainability strategy. they only act when forced & expect to be rewarded when doing anything beyond the bare minimum.
• Seen as a cost: Companies view sustainability as a philanthropic activity and do not coordinate their efforts. They view it as a cost rather than a business strategy. Additionally they might exaggerate or miscommunicate their sustainability efforts.

Question 5

What do companies that jump on board with sustainability journey tend to follow?

Answer 5

• Cutting costs: Companies start by reducing consumption and finding ways to save costs, often starting with office-greening projects coordinated by employees. (e.g. Singtel has implemented green initiatives such as energy-efficient technologies to reduce their energy consumption and carbon footprint.)
• Risk management:Companies use governance structures and sustainability tools to manage their risks better.
• Enjoy Indirect benefits:Companies look beyond cost savings and risk management to identify sustainability opportunities, such as recruiting better employees and suppliers.

Question 6

What are do companies get when they move forward with the sustainability journey?

Answer 6

• Opportunities: Companies explore sustainability opportunities across the business, including new products, markets, and partnerships.
• Strategic Approach: Companies developed an overall sustainability strategy supported by upper management and communicated internally and externally. Sustainability reporting is adopted throughout the organisation.
• Integration: Sustainability is integrated into everyone’s job descriptions, compensation, rewards, and performance evaluations, and all departments are involved in moving the agenda forward
• Continuous improvement: Companies work with other businesses to push sustainability issues forward and continually revisit their processes to make them more sustainable.