Can Industry Deliver Sustainability?

Addressing growing environmental issues has generated a fundamental shift in the way business sees itself, the customer and the future. Such issues have become strategic and a source of competitive advantage as environmental responsibility becomes an integrated part of business and can benefit the bottom line. As industry becomes proactive in its environmental and social responsibilities and re-brands itself with a more 'green' identity, can the world's big companies help bring forth sustainable development?

For greater sustainable development and resource-efficiency, industry has been a monumental driving force behind the development of technological and technical innovation required for a societal shift. Renewable energy and cleaner chemistry technologies are such examples initiated by industry demonstrating commitment to sustainability concerns. Some industries have shown commitment to sustainability by initiating company-specific action programmes, self-monitoring systems, education-industry partnerships and other such voluntary programmes which can complement government policy instruments. According to the European Commission, in the last 20 years European industries have shown increased environmental performance where, for example, industrial energy intensity has improved by more than 20% since 1995 while emissions and waste generation have much reduced. Changes by industry towards sustainable development have also contributed to poverty reduction by stimulating local economies and develop partnerships with private sector individuals for greater transparency.

Industry is central for change but there are still challenges to overcome. There is an overwhelming amount of policy frameworks or global initiatives, legislation considerations and required resources for implementation. Even with support, not all businesses have successfully managed to improve their sustainable performances. The recent 2012 EIRIS Sustainability Report scores several, high-profile global companies such as ExxonMobil and Apple with low sustainability grades. It claims that these companies have limited systems in place for environmental protection and human rights in the countries they operate in. If the leadership is lacking in the large corporations than inspiration for sustainable action can not be expected for other businesses. The report also notes how a company handles sustainability can differ where it will excel in one area but under perform in another so there are many factors when considering how much a company has contributed towards sustainability.

It is important that legislation and regulation by government allows room for industry to initiate action, utilise supporting economic instruments and make progress through a desire for social responsibility rather than strict compliance which can result in conflict and hinder sustainability efforts. This also means that strategies are designed to fit specific country circumstances. To achieve sustainable development industry is indeed a primary agent of change but it cannot solely deliver it. The causes of many issues are too diffuse, complex and interrelated that industry is only one part of, and the need to address the issues must come from a systemic way of thinking.