Topic 5: Sustainability in Business Functions 2

Question 1

How can a company implement DEI? (Diversity, Equity & Inclusion)

Answer 1

Linking Pay with Sustainability: Mastercard is expanding its ESG initiative by linking all employee bonuses to ESG goals, focusing on cutting carbon usage, improving financial inclusion, and gender pay parity. This decision responds to growing public and political concerns about climate change and economic inequality, with companies under increased pressure to show greater responsibility for their operations and profits.
Having a Chief Sustainability Officer (CSO): Esther Anis the Chief Sustainability Officer at City Development Singapore (CDL). She is responsible for leading the company’s sustainability initiatives to align the company and her personal goals with the SDGs.

Question 2

What is operations management?

Answer 2

The operations management approach to sustainability involves analysing products and processes throughout their life cycle and ultimately aims to have zero impact. However, products and services are produced and distributed through complex supply chains, where to reach zero impact potentially; one needs to consider having eco-design that involves integrating environmental considerations into the design of products and services from the beginning, using non-harmful materials and components, doing more with less by creating more efficient processes, using sustainable technologies (e.g. pollution prevention technology), having close relationships with suppliers (e.g. knowing that the manufacturing factories do not use child labour!), accessing the environmental impact of the transportation systems in moving products and looking at waste prevention and reduction by implementing strategies such as waste minimisation, recycling, and composting

Question 3

What are some challenges in sustainability & accounting?

Answer 3

• Lack of awareness among accountants
• Difficulty quantifying environmental and social costs
• The need to identify business benefits of sustainability initiatives
• Inadequacy of traditional accounting systems
• Short-term focus