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Article

29 Jun 2015

Author:
James Phillips, Business Green (UK)

Commentary: "Seven crucial lessons for green businesses from the UN Global Compact"

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1. Sustainability should be a board-level issue

2. "Corporate sustainability" is a growing umbrella term...But the term sustainability now typically covers social, environmental and governance issues, and includes issues such as gender equality and indigenous rights. For many businesses, sustainability now extends beyond pure environmental concerns...

3. Collaboration is key for sustainable businesses

4. Government policy needs to help companies stay true to their sustainability goals

5. Transparency on sustainability is becoming the norm for businesses...The report also suggests that this transparency allows companies to share and learn about best practices relating to sustainability issues, incentivising others to tackle potential environmental, social and governance risks...

6. Sustainability can drive corporate success...Energy and water efficiency in particular is becoming more important to customers..As a result, many of the most competitive business models are increasingly low carbon and focused on tackling social and environmental challenges.

7. Dominant world views need to adapt in order to tackle sustainability risks...Society now experiences "a deep sense of urgency" around the importance of combating climate change and resource scarcity, and some investors are responding by divesting from fossil fuel companies, demonstrating a recognition that businesses are seen as "a critical part of the solution"...Businesses need to overcome the "long-held view" that "short-term profit-maximisation" should always be the primary concern of commercial organisations, and recognise they also have long-term purpose, obligations and opportunities.