Closing the Gulf Between Sustainability Discourse and Corporate Sustainability is Crucial for Driving Real-world Change
2024 has been a tumultuous year for our planet. As nations grapple with more frequent natural disasters, poor water quality, and heat waves caused by climate change, great differences have emerged over the scope, timeline, and implementation of sustainability regulations. The effectiveness of international conferences like the COP in driving real actions has also faced growing scepticism. Amidst negotiations on net-zero goals, sustainability events, ESG reports, and more, many reports have suggested that little has been achieved so far. Is it the case that sustainability is experiencing a rocking horse syndrome?
A strong sustainability discourse is a crucial ingredient for real change to occur. In simplified terms, corporate sustainability discourse often consists of three parties; one wants industries to do more to shoulder their fair share of sustainability efforts, while the other pushes for a more practical approach to corporate sustainability. The third is caught somewhere in the middle, trying to figure out where to go and what is “enough”, often moving ahead despite having a great fear of making mistakes.
While it is possible to have a simplified picture, I am not inclined to assign the three parties in sustainability discourse to a simplified dichotomy of right or wrong.
When looking at complex issues, I often find that reimagining them in a different context can lead to innovative solutions. The gap between sustainability discourse and corporate practice draws similar parallels to another long-debated topic: the gap between education and industrial skill requirements. For example, in both cases, the root cause lies in the contention of perceived or real lack of practical application. Therefore, solving this area of disputation could create a stronger resonate between, for example, sustainability conferences and corporate actions that can lead to dual benefits: increase the uptake of corporate sustainable practices and safeguard them from being marginalised during economic downturns.
Can we apply some of the remedies that are designed to bridge the industrial skill gap to bridge the gap between sustainability discourse and actions?
One of the main key drivers of industrial competitive advantage is through investment in the Global Competency Centre (GCC). A GCC is an offshore unit of a multinational corporation (MNC) that provides services and support to the parent organisation to improve efficiency and reduce costs using access to global talent, resources, and expertise as its driving force. GCCs are innovation hubs that help drive new initiatives and technologies. In recent years, GCCs increasingly hire fresh graduates due to their focus on cost-effective talent which leads to the indirect cause of serving as development centres that convert education research minds and knowledge into innovative industry-ready processes. A smart investment mix by countries and companies on sustainability GCCs can significantly expedite the conversion of sustainability regulations into practical corporate sustainability processes. It is worthwhile to note that while industrial process efficiency and best cost approach have clear winners in several sectors who lead in the world economy, today there is no clear winner in terms of who has the “best” sustainability practices. GCCs on sustainability can well-positioned countries and companies to be global leaders in sustainability practices.
Recent reports indicate a significant disparity between the growing demand for sustainability expertise and the availability of skilled professionals. For example, green job opportunities remain unfilled due to a shortage of individuals possessing the requisite sustainability skills. As the Global South continues its economic ascent, the need for local sustainability specialists who possess a deep understanding of regional contexts and nuances becomes increasingly critical.
To address this challenge, it is imperative to enhance access to sustainability higher education, particularly in India. Additionally, a curriculum that integrates theoretical knowledge with practical, regionally relevant applications will empower future sustainability professionals to implement effective solutions. This approach will not only facilitate the adoption of sustainable practices but also foster an innovation-driven environment conducive to the development of cost-effective and impactful sustainability measures.
Expanding access to higher education is crucial for cultivating a larger pool of skilled sustainability specialists. By providing greater opportunities for individuals to acquire the necessary knowledge and skills, we can better equip them to address the pressing sustainability challenges in the global south.
While sustainable business practices aim to permeate all levels of industry, including small and medium-sized enterprises (SMEs), significant barriers remain. The current reliance on third-party verification and certifications, which can be prohibitively expensive, poses a substantial challenge for SMEs. While the specific costs of third-party assurance and certifications can vary widely among large corporations, it is generally acknowledged that these expenses are considerable for large companies and prohibitive for SMEs. Moreover, despite the existence of due diligence laws that explicitly state that certification does not guarantee compliance, these costs persist. To remove these barriers for SMEs, it is essential to explore alternative mechanisms that reduce dependency on certification while simultaneously making it more accessible and affordable for SMEs. Ideally, certification costs should be sufficiently low to enable SMEs to independently afford them, eliminating the need for financial support from larger corporations. Once again, collaboration between academia and industry can lead to innovative solutions that reduce certification dependency and improve its accessibility and affordability for SMEs.
By framing the sustainability discourse-action gap within the broader context of the education-industry skill gap, we can identify potential solutions that have been successfully applied in other domains. Furthermore, incorporating real-world case studies and projects into curricula can bridge the theoretical-practical divide. By creating opportunities for sustainability graduates and professionals to engage with industry professionals and work on real-world sustainability challenges, we can equip them with the skills and knowledge needed to drive sustainable innovation.
In conclusion, by drawing inspiration from the education-industry skill gap, we can develop innovative strategies to address the sustainability discourse-action gap. By fostering collaboration between academia, industry, and government, we can create a more sustainable future for all.