How to encourage companies to be more sustainable
#SRI — 24.02.2022

How to encourage companies to be more sustainable

By Caroline Palumbo - Investment Communication Manager

All companies should embrace sustainability. They can do this by promoting good governance, transparency, practical measures and sustainable habits. That said, Covid-19 is hindering some decisions.

SOMMAIRE

  • Five main characteristics of sustainable development
  • Three main pillars: Social, Economic and Environmental
  • Fighting greenhouse gas emissions is at the crux of the matter
  • Companies are responsible for the impact of operators in their production chain
  • ·A host of simple actions to increase sustainability in the workplace

Sustainable development has become a major concern for citizens and politicians alike, reflected in the ever stricter regulations. Many companies have begun their transition towards greater sustainability and several considerations must be taken into account. We highlight below the five main characteristics:

  • a strong governance with incentives linked to environmental and social performance;
  • stakeholder engagement (e.g. dialogue and training) and employee engagement;
  • long-term prospects for greater reliability;
  • measures which are detailed, realistic, planned and practical;
  • a high level of transparency
Objectifs de développement durable

"It makes sense for companies to move towards a more sustainable model."

Caroline Palumbo - Investment Communication Manager

The three pillars of sustainable development

The “social” (or human) pillar is about having an impact inside and outside the company. Furthermore, the workplace is an  ideal place where sustainable values can be developed thanks to diversity. Everyone can play a role by contributing to the “social” pillar. In the example of mentoring, a company is a key player when it provides the wider society with its expertise. With regard to the “economic” pillar, it makes sense for a company to participate in the development of its ecosystem, and favour the transition towards a more sustainable model. Meanwhile it must take into account the risks involved. The “environmental” pillar is the most visible, because the fight against global warming is on all our minds, starting with the reduction of greenhouse gas emissions.

La durabilité en entreprise - BNP Paribas Wealth Management

Every little counts

Whether big or small, companies should welcome any actions that contribute to sustainability. Here are some habits that can be adopted outside the workplace too:

  • reducing energy consumption by not overheating rooms;
  • configuring equipment by programming electrical installations and lighting, as well as turning off computers and other devices;
  • recycling by encouraging staff to sort waste;
  • optimising the sending of emails, for example by reducing large attachments (large emitters of CO2);
  • using soft mobility, carpooling and public transport;
  • having the reflex of reusing and recycling, which are principles of the circular economy.

 

 

"Citizens can also have a positive impact, by investing in more virtuous active funds, and therefore in sustainable companies. "

Caroline Palumbo - Investment Communication Manager

Due diligence

Companies are legally responsible for the negative impact of operators in their production chain. Furthermore, Europe is increasingly monitoring greenhouse gas emissions (GHG), which are divided into three areas for the purposes of measuring a company's carbon footprint. The first area includes direct emissions (heating, fuel, etc.). The second area relates to indirect energy emissions. And the third (very broad) area covers all other indirect emissions. For example, the purchase of goods and raw materials, or commuting to and from work.  The third area remains the big challenge for a company. Citizens can also have a positive impact, by investing in more virtuous active funds, and therefore in sustainable companies.

The opinions given on this website are those of the authors and do not necessarily represent the position of BNP Paribas Wealth Management.  

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