Amidst resurgent waves of the pandemic in the world, including Asia, sustainability continues to be a critical focus in the world. There are five standout lessons for the broader community.
(1) Pivot to social
Sustainability is often framed as a triple concept – environment, social and governance (ESG). While the environment has been the mainstay, the COVID-19 crisis surfaces social aspects that have not been receiving the necessary attention.
In the pandemic, many were required to adopt home-based learning or work from home. But some do not have adequate facilities or space for doing so. It is reassuring that some schools and companies have been doing their best to help their charges tide through this period.
On a broader social front, the often-forgotten plight of migrant workers has sprung up as a critical social concern in the pandemic. The efforts to improve the welfare of these workers have become a centrepiece of community actions.
Thus a foremost singular lesson of the pandemic is on the social front to address the challenges of inequality and cohesion.
(2) Don’t forget the climate
The coronavirus fallout has resulted in climate change being put on the back burner. Carbon emissions have been reduced, but national and corporate resources have also been diverted from tackling climate change.
A key development in the year is the change of presidential leadership in the United States, a country which was the first to withdraw from the Paris Agreement to fight climate change. The new Biden administration will have to take a global leading role, alongside with other major entities like China and the European Union, in reclaiming the agenda for climate change.
The key lesson is that climate change is a persistent global problem not to be neglected.
(3) Waste not, want not
Waste management is often an issue that is “out of sight, out of mind”. Countries try to export wastes when the costs of recycling or putting them in landfills are too expensive. There are now pushbacks from the Asian countries that used to be paid to receive such imports. For example, China has totally banned the import of waste from next year.
The key lesson is that for the waste problem to be solved, the waste must be reduced at the source. Less waste will be generated only if personal lifestyles or corporate practices change – the mantra is not to bite off more than what can be chewed.
(4) Substance matters
Stakeholders of sustainability, particularly investors and regulators, often rely on company disclosures. However, there may be cases of “greenwashing”, a practice where efforts are made for misleading marketing rather than to be actually sustainable.
There are sustainability-linked bonds and loans, and stakeholders, including the smaller public investors, should look at the substance rather than the form.
(5) Consumer is king
Ultimately, it will be the consumers who can nudge businesses to adopt good sustainability practices. It is only when the revenues are hit that corporates will sit up. In daily fixtures from coffee to meats, consumers can look at how the businesses are being responsible to the environment or society. Companies can help by communicating their effort in simple terms to customers at large.
Consumers will wield the final power and interestingly, this will require them to be more responsible. Consumer social responsibility, as the flip side to corporate social responsibility, will be the most powerful lesson driving good sustainable practices.