A new report from the World Benchmarking Alliance says most large companies are not doing enough to prevent environmental damage. Ranking more than 800 companies across different sectors, research found big gaps in reducing plastic pollution, saving water, and recognizing the rights of Indigenous Peoples. While some sectors, like personal care and medicine, did well, for the greater part of companies, there is still much that has to be done to reduce their environmental harm.
The WBA report underlines a critical issue: fewer companies understand their impact on nature. Only a few firms have made comprehensive analyses of the effects of their businesses on, or even reliance upon, the natural world. Too many lack such awareness, which can abate them from taking effective methods of environmental protection.
Plastic pollution remains very problematic. Many business companies do claim to reduce plastic, but in reality, very few set concrete goals or are making significant progress. From that, it is evident that declarations of intent are not turning into concrete actions and major space exists in covering plastic waste.
Water conservation efforts are also lacking. While some companies work to save water, the report indicates that not nearly enough have committed to cleaning up the water they use. Effective water management is critical to sustainable operations; yet, corporations just haven’t made this part of their environmental stewardship a priority.
Another key finding is that the rights of Indigenous Peoples are not adequately safeguarded. Although indigenous communities have a huge impact on the conservation of natural ecosystems, very few companies are found doing enough to respect and protect these rights. When this happens, there is a risk not only to the wellbeing of Indigenous Peoples but also to broader environmental conservation efforts.
The report identifies that sectors with committed leadership have advanced further in environmental protection. For instance, companies whose board of directors has been composed of individuals knowledgeable about the environment are more likely to have proper working sustainability practice in place. This correlation, therefore, proves the role of informed leadership in driving positive change within corporations.
Despite this generally poor performance, the report does identify some sectors as making notable progress. This generally means that businesses dealing with personal care and medicine perform better in terms of environmental performance. Companies operating within these sectors are usually compelled to achieve high standards for the sale of their products, ensuring safety both for people and the environment. Most striking examples are Unilever and Novartis, which have reduced their environmental impact considerably and are the leaders in their sectors.
It urges large companies to act decisively in nature conservation. This entails detailed assessments to understand the impact on the environment, concrete goal setting with achievements to reduce harm, and respect for the rights of the Indigenous Peoples. The report also highlights the call for accountability on the environmental actions of companies by governments, investors, and consumers.
This can only lead, as reflected in the WBA report, to an alarming picture of corporate environmental responsibility. The great majority of large companies are still failing to act on the natural world, while some sectors and firms are already at the forefront. Avoiding a crisis will require a powerful impetus and collaboration from business, policymakers, and the public. The rise of awareness, higher expectations, and pressure will drive companies to do better for a more sustainable future.
Source: WBA, World Benchmarking Alliance.