What does sustainability really mean? Should businesses find meaning in sustainability? How do businesses integrate sustainability with competitive practices? Rather, should businesses integrate sustainability with competitive practices? Who even bears the cost of sustainability? What about durability of durability?
Interestingly, the term ‘sustainability’ first appeared in the 1970s. At that time, the concept came from ecological disasters. Within a decade, sustainability expanded to include a broader and more comprehensive meaning. Sustainability became ‘development that meets the needs of the present without compromising the ability of future generations to meet their own needs’.
By 2015, sustainability further refined its avatar as the Sustainable Development Goals (SDGs), comprising 17 goals and 169 distinct targets across environmental, social and economic indicators. Correspondingly, the SDGs underscored the critical role of businesses in sustainability – not only in contributing to but also in meeting the SDG targets. And this marked the beginning of the ballad of sustainability and businesses.
The forums were created to encourage consistency in business practices. Important statistics and data found their way into the headlines. It said the SDGs could generate at least $12 trillion in savings and business income across four sectors by 2030 – energy, cities, food and agriculture. The SDG-led solutions needed to enable businesses to manage their risks, anticipate consumer demands, strengthen supply chains and build positions in growth markets. ‘Business cases’ for sustainability are drawn up and discussed.
Businesses turned their attention. Around 2017, Paul Polman, (then) CEO of Unilever observed that if a company wants to thrive in the long term, putting sustainability at the heart of business operations is essential. In 2019, the UN’s Global Compact-Accenture Report drew insights from over 1,000 CEOs around the globe and found that the business case for sustainability was clear and businesses were ready to embrace sustainability at its core and (also) act. !
Over time, the discussion about sustainability and the role of businesses developed. New commitments and objectives were discussed.
Unfortunately, discussions remained within the glass walls of the Global North, or the developed world. The Global South, or the developing world and also the manufacturing segment of the value chain, were mainly observed.
A significant landmark in the evolution of sustainability was Business and Human Rights (BHR). Officially launched as the UN Guiding Principles on HRD (2011), the concept supports the responsibility of states to protect and the duty of businesses to respect human rights – not just in business operations, but through their supply chains. Further, the guidelines expect states and businesses to provide efficient and accessible redress for human rights violations.
On this front, the Global North, taking on the responsibility of cleaning up global supply chains, moved at a remarkable pace. Unfortunately, once again no discussion with the Global South.
Some countries such as Germany, Norway, France, the United Kingdom, the Netherlands and Belgium have mandated companies across a certain threshold to undertake human rights due diligence in their global supply chains. The European Union is going one step further and considering an import ban on forced labor and modern slavery. Australia and the United States have announced similar targets.
Due diligence laws, though created with sincere intentions, fail to understand and take into account the social, economic and cultural nuances of developing countries. Further, as the developing world grapples with packaging sustainability, it seems unfair to use buyer preference and expect some standards to be implemented without sharing the cost and assuming equal responsibilities.
By understanding the gap between understanding and practicality around sustainability, especially BHR, a platform such as the Business and Human Rights Network can simplify and demystify the concepts of sustainability, especially under BHR, for South Asian businesses. The network also aspires to create a voice for South Asian businesses and develop North-South dialogues.
These dialogues will bring together businesses and key stakeholders from developed and developing countries to discuss pragmatic ways of implementing sustainability principles. The idea is to understand how South Asian businesses can navigate the sustainability and BHR paradigm, become more resilient and competitive, and engage meaningfully with the North.
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