Economic growth has for the longest time defined how businesses operated and how they were rewarded. The assumption had always been that there is an infinite supply of resources available to create what we wanted. But the current environmental problems we currently face1 have shown us that we do not have infinite supplies of everything.
Sustainability is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. It acknowledges that any business decision that one makes will have an impact on the natural environment and people far and wide.
‘Treat the Earth well. It was not given to you by your parents. It was loaned to you by your children.’ ~ Kenyan proverb
While growth is still the main focus for businesses, it should not come at a cost to the society and the environment. Companies should not continue profiting through depleting and damaging2 their surrounding environment. Profitability should rely on responsible and equitable approaches to workers, communities, and the natural environment, and then reflecting this in corporate values, practices, decisions and policies.
Environmental, Social and Governance (ESG) is an investor lens into some sustainability concepts, but from the point of view of financial performance. ESG are groups of issues that investors use to screen the non-financial performance of companies that they invest in. Investors would want to know that a company they invest in is addressing risky issues3 that may affect its bottom line, preventing it from delivering its responsibilities to shareholders.
Globally, sustainability regulations are evolving at different paces. Frameworks such as the CSRD in Europe, Japan’s sustainability disclosure requirements, Australia’s climate-related financial disclosure framework, the UK’s Sustainability Disclosure Requirements, and climate disclosure rules in California reflect increasing recognition of sustainability-related risks.
In Africa, while the sustainability regulation landscape is still developing, many countries have adopted or are adopting the IFRS Sustainability Disclosure Standards (IFRS S1 and S2).
At Jaya Karbon Kounsel, we help companies understand sustainability and ESG, identify material risks and opportunities, and guide them in embedding these considerations into their core business strategy. We do this through a structured, four-stage approach:
Stage 1: Capacity building to help companies understand sustainability, ESG principles, and their relevance to business performance.
Stage 2: Opportunity identification through roundtable discussions to brainstorm and prioritise potential ESG initiatives aligned with the company’s operations and strategic objectives.
Stage 3: Integration by facilitating the embedding of sustainability and ESG considerations into day-to-day operations, governance structures, and long-term strategy.
Stage 4: Sustainability reporting and storytelling, including data management and analytics, to transparently communicate the company’s sustainability performance and ESG narrative to stakeholders.
Ultimately, we believe that sustainability should not be driven by compliance alone, but by a genuine commitment to long-term value creation, risk management, resilience, and positive impact on society and the environment.
Get in touch to explore how we can support your business on its sustainability and ESG journey.
Footnotes
Air pollution, climate change, deforestation, biodiversity loss and ocean plastics↩︎
This damage ranges from climate change, biodiversity loss, the waste crisis, water pollution and scarcity, inequalities across regions, classes and gender, the rise of corrupt institutions, etc. There is a need for businesses to pursue their economic objectives while operating within an environmentally and socially safe space.↩︎
For example, if a company relies on scarce natural resources to produce its products, it might run into supply intermittency and commodity spikes, leading to delays in production and higher commodity costs. Additionally, if a company disposes of its harzadous waste properly and sets up strong health and safety practices at the workplace, it is less likely to be subject to fines from regulators or reputational damage from its employees and the public.↩︎