How to Achieve Corporate Sustainability?

By Öykü Güldürmez On Jan 25, 2024

This article will outline how to achieve corporate sustainability. To be more effective, we should first define the concept of sustainability.

Sustainability refers to the goal of maintaining environmental, economic and social balance by paying heed to the needs of future generations while using natural resources to meet the needs of current generations. In this context, it is crucial to acknowledge that resources are finite. Therefore, we should use resources consciously and evaluate long-term consequences wisely.

To survive in a world where resources are finite, it is not enough for individuals to adopt sustainable lifestyles as companies must also embrace sustainability in business. Sustainability offers various advantages to companies in the long term such as decreasing costs, better corporate reputation, increased brand value, and longer company life.

Each day, the number of stakeholders and investors who expect companies to report regularly in compliance with globally recognized frameworks is increasing. As a result, companies need to develop and implement environmental compliance plans.

Below, there are some steps to be taken by companies for corporate sustainability.

1. Strategy Development

The United Nations Millennium Declaration was signed in September 2000 to underline the most important and urgent sustainability issues, including:

Poverty eradication
Combating hunger
Healthy and improved life
Quality education
Social gender equality
Clean water and purification
Accessible and clean energy
Decent work and economic growth
Industry, innovation and infrastructure
Reducing inequalities
Sustainable cities and communities
Responsible production and consumption
Climate action
Marine life
Terrestrial life
Peace, justice and powerful institutions
Partnerships for common goals

In this context, sustainability goals should be identified from the issues above within the framework of fields of activity as well as environmental and social factors.

2. Analysis and Reporting

Following the identification of the goals, the next step is to determine the actions that will achieve them. To that end, a company’s field of activity and products and services must be addressed one by one. Identifying existing and potential outliers facilitates achieving goals.

To measure the impact of targeted actions, qualitative and quantitative indicators must be used together, and reporting methods must be explored to choose the most appropriate one.

When a company respects international reporting standards while reporting its activities, it will improve its reliability at the international level and complete the compliance procedures more easily.

3. Integration and Practice

Integration is crucial to adopt and embrace sustainability. Many habits will need to change during the transition process, and the internalization of this change will require sustainability to turn into a corporate identity in the long term.

Sustainability goals must be incorporated into the company’s mission/vision.
Top executives must show that they care about sustainability and be role models in their actions.
Managers must receive sustainability training and follow the most up to date information about the topic.
The monitoring of the process can be easier if a board is formed from managers to maintain and supervise sustainable activities.
Employees must receive sustainability training on the relevant goals and the necessary actions to achieve them.
Mechanisms must be established for action plans, and the employees to be appointed for this purpose must be given specific tasks.

Below, there are examples from some of the companies that have embraced sustainability, which will illustrate the points explained so far.

LEGO

LEGO has made a major progress in the use of sustainable materials by selling plant-based polyethylene toys since 2018. The company has also been recycling plastic bottles for use in its toys since 2012 and continues to work on recyclable materials that can be used in toys.

IKEA

IKEA gets almost half of the wood and cotton used in its textile products from sustainable resources. All of them are produced based on a standard that minimizes water pollution through organic farming while the use of chemical fertilizers and pesticides is kept to a minimum.

The company also advocates for justice and equality. Hence, it observes internal rules of conduct promoting those principles and supports social entrepreneurship.

ABDİ İBRAHİM

Abdi İbrahim reports regularly and sets targets, thus getting recognition due to its compliance with international standards. The company’s actions will be more realistic and consistent if objectives are set for the following 10 years.

Abdi İbrahim balances its field of activity and objectives by looking for sustainable packaging alternatives in material supply and using 100% renewable energy in its Esenyurt Plant.

It is a long process to turn corporate sustainability into a corporate identity. However, we should always remember that our resources are limited, and our planet is one and only. Therefore, taking the necessary action is indispensable for the future of the planet first and then adaptation to international trade.