Green Corporate Stewardship Initiatives and Stakeholders: Examples of Interconnectedness

  • | Friday | 29th March, 2024

About a decade-old survey by McKinsey found that 70 per cent of consumers surveyed said they would pay an additional 5 per cent for a green product if it met the same performance standards as a nongreen alternative. This, of course, was the situation some 12 years back. Between then and now, landmark events like the Paris Agreement in 2015 and the COP 28 summit in Dubai in 2024 have further positively changed the scenario, leading to companies incorporating Green CSR practices into their operations and strategies. These practices include implementing environmentally friendly policies, reducing carbon emissions, using renewable energy sources, promoting recycling and waste reduction, supporting conservation efforts, and engaging in community initiatives related to environmental protection. Thus, companies are fulfilling their social and ethical responsibilities and reaping various benefits. As a result, their reputation and brand image go up, they can attract environmentally conscious customers, gain a competitive edge in the market, and reduce their manufacturing cost through energy efficiency measures and sustainable practices. Some of the prominent strategies and their examples can be articulated as: Sustainable Products and Services: Companies increasingly integrate eco-friendly design and sustainable materials into their core competencies. Services, like those provided by Zomato and Blinkit, integrate sustainable practices like using eco-friendly packaging for deliveries, promoting less use of plastic cutlery, and delivering food/ other orders through carbon-neutral means. Clean Energy Solutions: Businesses, including large corporations like Amazon, invest in renewable energy sources, such as solar or wind power, to run their operations, reducing reliance on fossil fuels. Carbon-intense companies like UltraTech Cement use dry waste/ used tyre dust instead of coal as their alternate fuel resource. The vision is to manufacture 100% carbon-neutral concrete by 2050. Resource-efficient Practices: Companies are adopting more efficient manufacturing processes to minimise waste and conserve water and energy. Unilever, for instance, focuses on the sustainable sourcing of ingredients and has implemented ways to conserve water and reduce factory waste. By eliminating fossil fuels, Unilever aims to become "carbon positive" by 2030. Green Marketing Initiatives: Many businesses promote their environment-friendly products and efforts as part of their marketing strategy, attracting consumers who value sustainability. The Body Shops ethical sourcing of ingredients and against animal testing are the main selling points for their personal care products today. Recycling and Waste Reduction Programs: Companies are increasing efforts to recycle materials and reduce waste outputs, including electronic waste management and encouraging consumers to recycle product packaging. Starbucks has launched programs to recycle coffee cups and minimise waste, enabling customers to bring reusable cups and offering in-store recycling bins. Likewise, Apple has a robust recycling scheme where customers can return old devices, which are then either refurbished for resale or recycled responsibly. Eco-conscious Corporate Policies: Companies may have policies encouraging environmentally friendly commuter options, such as bike-to-work programs or installing energy-saving devices in offices. BMW provides a company car fleet focusing on electric and hybrid vehicles to encourage a shift towards cleaner transportation among its employees. Another vital example is the remote work options offered by Twitter and Facebook, which allow employees to work from home and reduce the carbon footprint associated with commuting. Community-based Environmental Initiatives: Many organisations engage in afforestation programs, beach cleanups, or campaigns to promote awareness about environmental conservation. Macquarie Foundation frequently organises cleanup events to remove pollution from natural water bodies. HCL Technologies, for example, works with local municipalities to improve recycling infrastructure or sponsor programs that incentivise waste reduction and proper disposal. Every day, as consumers and communities, we observe these initiatives, whether through the choices we make while shopping, the brands we support, or the corporate policies that affect employees and local communities. Companies that engage in green CSR are playing a role in normalising environmentally responsible behaviour and contributing to a culture of sustainability. Companies often communicate these initiatives internally, but the systematic social reporting of such green CSR initiatives may need improvement in some contexts. Despite this, their green-based CSR initiatives positively impact both internally and externally. The writer, a PhD (Santiniketan), is a Manager (Grant Administration) at Humana People to People India, New Delhi

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