Prioritising sustainability goals in Asian business
Roundtable participants came together from diverse industries—including agribusiness, automotive, chemicals, logistics, coatings, real estate, banking, technology, electric vehicles, finance and education—to discuss their contributions to sustainable transformation in the region. Their self-introductions highlighted the importance of work in areas such as uniting indigenous knowledge with sustainable agriculture, reducing the environmental burden of industrial processes, and promoting electrification, low-emission transport and the use of renewable energy.
“Business leaders must go beyond regulation to actively address sustainability challenges, rather than expecting that mere compliance will do enough to promote the necessary change.”
They shared diverse perspectives on balancing immediate economic goals with long-term environmental and social objectives. Views on government’s role varied: European laws were seen as supportive, while South-East Asian countries have been slower to move in a similar direction. However, some Asian initiatives may even be ahead of Europe. Sustainable transformation can be complex, but benefits from alignment between public policy and private-sector initiatives. Attendees saw collaboration across industries and borders as essential to addressing global sustainability goals.
For commercial reasons, business leaders must go beyond regulation to actively address sustainability challenges, rather than expecting that mere compliance will do enough to promote the necessary change, one participant argued. Firms should take a strategic approach to sustainability, from the board level down, building partnerships and fostering innovation and forward thinking.
Using data to guide investments
Another speaker gave thought to the challenges of using data to achieve sustainability, which centre around achieving transparency and integrating systems throughout supply chains. Obstacles also include a greater reticence among some major companies, under today’s economic pressures, to implement aggressive sustainability agendas. This is especially true where regulation is lacking or not implemented effectively.
On the other hand, some large firms have ample idle capital, which led to consideration of how banks and green funding organisations could put it to work in sustainability initiatives. Financial institutions can play a role in redeploying capital in this way, especially if reliable data on the ESG performance of projects and initiatives is available. Appropriate laws and government incentives should help to make sustainable investments attractive and feasible for small and medium-sized enterprises, not just large ones.
“Participants suggested focusing on systems interventions, strategies to uplift communities and ecosystems without the aid of government, and applying technology to reduce greenhousegas emissions.”
But precisely where sustainability investments should be targeted is a multifaceted question with no simple solutions. Participants suggested focusing on systems interventions, strategies to uplift communities and ecosystems without the aid of government, and applying technology to reduce greenhouse-gas emissions. Distributing the costs of change across value chains can be a challenge, but would reduce firms’ perceived risk from being the first to act. Government incentives could be reallocated from high-emitting industries to fund sustainable transformation.
Working together is essential to transformation
As the discussion drew to a close, one participant considered how their business had tried to make sustainability action both affordable and accessible through award and hackathon programmes that stimulate sustainability innovation. Outcomes have included data-driven insights on how to reduce carbon footprints, including through converting waste into bioelectricity. Startups and private-sector collaboration could play an increasing role in advancing sustainability in the near future.
“No one sector can go it alone, but collaborative approaches that unite government, businesses and communities can help to conserve resources, biodiversity and the environment effectively.”
Mr Beardsell wrapped up the discussion by acknowledging the widely observed complexity of achieving sustainability as a business. No one sector can go it alone, but collaborative approaches that unite government, businesses and communities can help to conserve resources, biodiversity and the environment effectively, especially when the right financial frameworks and tax incentives are in place.
Key takeaways
Compliance is not enough. Leaders must go beyond what regulation demands to actively address sustainability challenges.
Data is crucial for informed decision-making on sustainability.
Achieving greater transparency and systems integration across supply chains will help To maintain trust in organisations, this has to be done securely.
Idle capital could be put to better use. Financial institutions and large firms could direct more investment to sustainability initiatives where reliable information on ESG performance is available.
Government has a substantial role to play in promoting transformation. Asia is often seen as lagging behind Europe in introducing laws on sustainability. The right regulation and tax incentives can bring multiple stakeholders together for the benefit of society and the environment.
