As mentioned earlier, in 1987, the Brundtland Commission set up by the United Nations defined Sustainable Development as “meeting the needs of the present without compromising the ability of future generations to meet their own needs”. This landmark definition which sought to balance economic, social and environmental needs has profoundly influenced global development and business practices ever since. Before now, the focus was on Corporate Social Responsibility (CSR) which is often narrowly concerned with socio-economic justice to host communities and critical stakeholders. But the Brundtland Commission report helped usher in the emergent Environmental, Social and Governance (ESG) model which has placed conservation and sustainability on the front burner. In truth though, both approaches are mutually reinforcing and it is not a case either this or that as the Social and Governance in ESG are underpinned by strong ethics and commitment to economic justice.
So, in the Nigerian economy long driven by fossil fuels, sustainable business practices speak directly to the need to, among other things, adopt environmentally friendly and sustainable business practices to help combat climate change which pose an existential threat to humanity. Just last week, the Coordinating Minister of Health and Social Welfare, Prof. Muhammad Pate warned that the effects of climate change have worsened air quality, exacerbating both infectious and non-communicable diseases as well as malnutrition and food insecurity. For businesses and humanity at large, climate action is key to reducing greenhouse gas emissions and achieving the target of zero net emissions of human-caused carbon dioxide (CO2) by the year 2050.
So, while businesses are primarily driven by their bottomline, sustainability places on them the added responsibility to protect the planet and to be ethical, fair and just to their employees, customers and communities underscoring the three pillars of sustainability- People, Planet and Profit.
Realigning current economic realities in Nigeria to sustainable business practices requires, without doubt, deliberate, well-thought efforts by a diverse range of actors- governments at all levels, the organized private sector and civil society groups, including faith-based entities and community organizations. Such intentional, collective and collaborative approach must be anchored on sound policies, good ethics and global best practice with well-thought-out legislations and mechanisms, where necessary, for their enforcement.
As you may well have noticed, I have deliberately refrained from emphasizing legislations as I strongly believe that sensitization and voluntary commitment of all stakeholders is the most effective way to entrench sustainable practices. Take, for instance, the case of conservation in the light of the debilitating impacts of climate change. How many Nigerians would act on that on the basis of admonitions by climate activists or government officials? But if such call to climate action were to come from their Pastors or Imams as sin against God, and there are scriptural basis in both Islam and Christianity, even Traditional African Religions (ATR) to protect nature (i.e. God’s creation), they are much more likely to act. I say this because Nigerians are zealous about religion. In my opinion, faith driven advocacy is probably a more effective way to generate passion and commitment around sustainability in every respect, than legislations that are barely enforced due, in part, to lack of resources. It is about tapping into our immense cultural reservoir (e.g. faith and traditional institutions) to engender a new sustainability ethos across sectors, including businesses. As primarily a values issue, we should make sustainability a way of life.
With respect to businesses, sustainable practices involve embracing eco-friendly activities, which aim to minimize harm to the environment by conserving natural resources. Thes include water and energy conservation such as adoption of renewable energy, use of energy efficient lighting systems, smart grids and management systems, recycling waste products, reducing single-use plastics, developing waste-to-energy capacity and environmentally safe use and disposal of hazardous waste, especially in the manufacturing sector, more eco-friendly transportation systems that reduce our carbon footprints.
This also involves developing what is now known as green architecture- the use of sustainable materials like wood, bamboo, and recycled materials in building energy-efficient homes with green roofs and walls along with rainwater harvesting systems. With respect to Agriculture, the transition demands better eco-friendly practices including the adoption more efficient irrigation systems that minimize water waste. Also, high up among sustainability’s key concerns is the conservation of biodiversity which includes the restoration of natural habitats, protection of endangered species, promotion of sustainable forestry practices, support for eco-tourism and conservation education programs, all geared towards sustainable lifestyles.
The United Nations Environment Program (UNEP) and similar organizations are today driving the concept of the Green Economy- an economy defined by sustainable consumption, production and resource efficiency for development which aims to produce production processes and consumption practices to reduce resource depletion, waste generation and emissions across the full life cycle of processes and products.
Realigning current economic realities to sustainable business practices will also require emerging economies to promote good governance and transparency. The twin issues of good governance and transparency have been issues of global concern because they embody capacities to grow or mar economies. This is mainly because issues bordering on institutional reforms and transparency are critical to economic sustainability. For instance, by engaging in institutional reforms, emerging economies can establish independent judiciaries, strengthen anti-corruption agencies, implement electoral reforms, enhance parliamentary oversight as well as foster transparent public procurement processes, among others. These will help foster an ethical governance and business culture.
In building transparency and accountability platforms, emerging economies would need to adopt and adapt to open data portals where information can be easily accessed, activate Freedom of Information (FOI) laws, encourage public budget disclosures, enforce asset declarations for officials and ensure whistleblower protection. They must also be ready to allow for independent media and press freedom which is necessary to hold public officials accountable, and also encourage civil society engagement, public participation in policy-making and citizen-led budget tracking. This is necessary to ensure that budgets are applied to needs. Such economies must also enact and enforce anti-corruption laws, investigate and prosecute corruption cases, implement asset recovery mechanisms, enhance corporate governance and encourage international cooperation against corruption by way of joining international anti-corruption conventions and signing up to such international protocols that allow independent bodies to have a look at your books, participate in global governance forums, collaborate with international organizations for anti-corruption measures and even investigation and prosecution of as well as engage in peer review mechanisms, implement electronic voting systems to ensure transparent polls and adopt cybersecurity measures to ensure data protections and safety of online financial transaction. These, according to the United Nations Development Programme (UNDP) and Organisation for Economic Co-operation and Development (OECD) have the capacity to open emerging economies to global audiences and create opportunities for international collaborations that are vital to economic development and growth. In virtually all the issues mentioned above, Nigeria lags many African countries, not to talk of more advanced economies and democracies. But we can, and must do better given the immense human and material resources at our disposal.
Check this story for Part 5
Sustainable business practices in emerging economies (5)