Biz urged to adopt sustainability strategies

More businesses are called to adopt sustainability strategies given the changing global landscape and support a circular economy.

Citing a study of the Boston Consulting Group, Pete Maniego Jr., trustee of Institute of Corporate Directors, said strong environmental, social, and governance (ESG) performance drives consumption decisions, and determines employer attractiveness.

“(Over) 20 percent of the consumers are willing to pay a 10-percent premium on companies that practice ESG and millennials use this ESG to select jobs,” he said in a webinar.

“And there is a higher profitability and of course a reduced threat of regulatory risk and you can attract better financing and therefore you have a lower (cost of) capital and fuel market expansion, and your valuation will increase by more than 10 percent,” he added.

Maniego highlighted the benefits of a sustainable circular economy to reduce greenhouse gas (GHG) emissions, improve air quality, preserve long-term biodiversity, improve ocean health and water quality, and economic growth and job creation.

He noted the $4.5 trillion global economic opportunity by 2030 through spurring innovation in waste reduction.

With these benefits, Maniego said there are companies that have moved beyond linear to a circular economy which is “transitioning away from business as usual.”

“Circular economy is a restorative and regenerative system which is a close look and built on these three principles –designing out waste and pollution, keeping materials and production in use, and regenerating natural resources. We cannot just sustain, we have to regenerate natural resources. There is minimal zero waste since materials and resources retain inside the close loops,” he added.

Maniego said among the priority programs of the Marcos administration are the utilization of renewable energy sources, and sustainable development.

“But any efficiency and conservation are the low hanging fruits and have very short payback period. Of course intelligent buildings and we must accelerate electric vehicle deployment. We strengthen tourism and jobs creation –ecotourism, utilization of indigenous materials, and revitalizing traditional handicrafts and of course to promote sustainable development, we must all commit to the SDGs (Sustainable Development Goals),” he said.

Yoly Crisanto, chief sustainability and corporate communications officer of Globe Telecom Inc. Philippines, said using ESG creates value for the business.

“At the core of our ESG practice is carrying out responsible business operations by ensuring that we address our material issues and engage our stakeholders. How we use ESG to create value –first of all we focus on our employees, we focus on our supply chain, and of course our shareholders,” she said.

In terms of supply chain management, Crisanto said her company has committed to develop, practice, and promote sustainable supply chain policies and programs.

“We have an existing supplier code of ethics where suppliers are encouraged to support the economic, social, and governance aspects that the company practices at the moment. And also responsible supply chain engagement where we integrate sustainability metrics in partner engagements. When you want to become a supplier of Globe, there will be questions on sustainability as part of your criteria to enter the supplier value chain,” she added.

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