When focusing on sustainability and the threat of climate change, we quite often jump solely to environmental changes, anything relating to carbon, and emissions reductions. Here we discuss the danger of forgetting the ‘S’ — Social — in ESG, and how a holistic view really is necessary to create sustainable businesses and society. Grain’s recent Climate Fresk sessions, the latest addition to our sustainability services, have helped participants become aware of the complexities of climate change, and how environmental changes ultimately end up affecting people.
Environmental racism and climate migrants
The term ‘environmental racism‘ refers to how certain communities are more likely to live in heavily polluted areas based on income level and race. While being a planet-wide problem, this issue is not tied only to different countries and levels of development, but even within cities like London. A UK Government report found that Black British children are exposed to up to 30% more air pollution than white children. This ties into the concept of ‘intersectional environmentalism‘, which explains how multiple forms of environmental and social injustice overlap and intersect.
The number of global migrants and displaced people is now over 100 million, and vulnerable groups whose lifestyles contribute the least to the climate crisis are often the most at risk from extreme weather. Recent research by Oxfam on the ‘carbon gap’ shows the richest 1% of people are responsible for as much carbon output as the poorest 66%, and that millionaires alone are on track to burn 72% of the remaining carbon budget for the 1.5°C limit. Already marginalised groups are those most at risk of becoming future ‘climate migrants’, specifically women and children, proving climate change to be a social issue that requires a focus on inequality.
How can business sustainability strategies make a difference?
One way businesses can take a holistic approach to sustainability is focusing on incorporating the UN Sustainable Development Goals (SDGs) into their business strategy, and setting targets based on them. The B Corp framework is another process that ensures focus on social and environmental performance, and there has been a recent push towards ensuring the certification is available to underrepresented founders. It is important to look at how business may impact all stakeholders, from direct employees to those further along the supply chain, and ensure targeted measures are in place to help. It has been found that 76% of the world’s largest asset managers have a commitment to human rights in their policy documents, but just 4% have a dedicated policy to tackle this.
The idea that sustainability is a luxury many can’t afford has led people to believe that big businesses should be leading the charge, as they have traditionally been the most detrimental to the planet. However, sustainability needs to be accessible to small businesses too, considering that SMEs represent 90% of businesses worldwide and employ 2 billion people. Initiatives such as the SME Climate Hub are a good place to start, and investing in prioritising social and environmental sustainability will allow you to get ahead of regulation, improve efficiency and reduce costs, while attracting new customers and funding.
The think tank Demos has recently proposed that if laws were to change and businesses looked beyond shareholders to put social, economic, and environmental benefits at the heart of their decision-making — following the example of businesses such as Tony’s Chocolonely — Britain’s economy could receive a £149bn boost. Enhancing the focus on social issues and people, as well as the environment, is critical if we want to optimise the green transition. Promoting inclusivity allows for different communities to have a voice, bringing unique perspectives and knowledge on how to create a more sustainable future.
For help with business sustainability strategies, ESG reporting services, B Corp consultancy and more, don’t hesitate to get in touch.