BEYOND THE “KNEE JERK” ENVIRONMENT REACTION

Not too long ago, addressing environmental issues was considered as philanthropy. But now, a significant proportion of business- small and large- have mainstreamed environment management practices as a part of their daily business routine. What possibly began as a knee-jerk reaction has unfolded to a new business standard with business putting more back into society and the environment than they take out.

The sustainability of the natural environment is highly relevant for business and is currently attracting diverse perspectives by the different stakeholders. The key proponent of this discussion is the subject of climate change where Washington has insisted that climate change is FAKE NEWS. Well, the private sector globally is ignoring this as they have carried out their risk an analysis and one of the biggest risk is the issue of natural environment sustainability. “Mother nature” is the source of raw materials for many and if they will need to remain in Business, there is need to maintain or improve the mother for it to continue being the goose that lays the golden egg. What Washington is auguring is that we should just slaughter the goose and hope all will be well. To address natural environment challenges there is two options left one is to have the trade-off between economic progress and environmental performance given that the economy is wholly dependent on the environment for its survival. The second option is for individuals and institutions to have deliberate sustainable consumption and production methods that safeguard the natural environment. In a nutshell, the prevailing world’s economic model is pushing beyond the limits of the ecosystem ability to cope and business being the most at risk need to do something. There are diverse concepts and discussions around the natural environment that are spanning from focus on the inevitable material exhaustion, rising costs and social injustice as a result of operations, the fragmented paradigms on the future of natural environment shapes and companies need to determine what actions to take to mitigate the risks. 

The Resource Depletion Challenge

It is easy to feel astounded by the complex subject on natural environment subject but conceivably we could address the issue from a business approach to resource scarcity and resource efficacy. The earth has a deposit of finite resources while business depends on natural resources such as fossil fuels for energy, clean water supply, and food supply. The exponential population and economic growth, economic shifts, and climate change are progressively putting pressure on the natural environment yielding high environmental cost and diminishing the utility derived from our environment. For example, world’s water supply is becoming increasingly scarce notwithstanding that it’s a basic resource for entirely all business environment from running machines to sanitation in the office. We are witnessing the encroachment of animal parks and forest are diminishing the lifeboats for wildlife a major resource for tourism business. The consequences of deteriorating environment such as increasing sea levels, floods, drought, heat waves and forest fires keep increasing in both frequency and severity. Environmental shocks such as flash floods and landslides affect infrastructure which increases the cost of production that results in the decline in business bottom lines. This raises a great challenge in ensuring the integrity of our natural systems and striking a balance between economic and environmental demands balance.

The Resource Efficiency Opportunity

Organizations are already pursuing innovative strategies that yield profitability alongside a low ecological footprint which emphasizes the significance of resource efficiency. Companies that demonstrate good examples of environmental stewardship validate that there necessarily no reason for cynicism in environmental conservation. Unpacking the renewable energy market opportunity, Bronkhorstspruit Biogas Plant (Pty) Ltd in South Africa utilizes waste from the food processing plants to generate 4.6MW renewable energy which is supplied to the national grid demonstrates that resource efficacy creates value for business while addressing ecological footprint challenge. Sustainable living brands that combine a strong business and environmental purpose by Unilever delivered 75% of the growth of sales in 2017. Such intervention demonstrates that the resource scarcity challenge creates new opportunities for money-making: by developing products that use fewer valuable resources, for example, or which allow users to use less. The implication has been recognizing that the natural environments have both an intrinsic value as well as financial value whose optimization is fundamental for intergenerational equity as well as for the welfare of the various stakeholders, shareholders included. Moreover, by increasingly adopting strategies to reduce ecological footprint, business build reputation which buys them legitimacy in the eyes of the stakeholders such as consumers, environmentalist, and regulators. Therefore, the business agenda ought to reform along environmental conservation for intergenerational equity.

Striking a Balance

We’re seeing more companies work on their ecological footprint. Certainly, a detour from predominantly utilitarian approach to an intergenerational equity approach in addressing concepts in the natural environment is inevitable. It’s salient that business has to adopt efficient operations and collaborate in research on technologies that yield positive ROI and environmental benefits. We have to appreciate that it will not be a walk in the path striking a balance between economic and environment protection priorities, but financial sacrifices will be inevitable.

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