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Sustainability & COP28: What it means for boards launch, platform unveils strategic roadmap for governance issues

By Sunday Aikulola

02 June 2024   |   3:26 am

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In furtherance of its commitment to elevating the quality of discourse on governance issues, leading online professional forum, The Governanc

In furtherance of its commitment to elevating the quality of discourse on governance issues, leading online professional forum, The Governance Platform (TGP) has unveiled a strategic roadmap aimed at guiding organisations in shaping their sustainability agendas by adopting the outcomes of COP28.

Based on insights from the book, Sustainability & COP28: What It Means for Boards, co-authored by corporate governance expert, Professor Fabian Ajogwu (SAN), and sustainability expert, Dr Onajite Newton, the roadmap was unveiled during an executive breakfast session in Lagos, which also marked the official launch of the book.

At the event, C-level executives from various multinationals and local corporations had the opportunity to dialogue with the co-authors gaining valuable insights on enhancing sustainability awareness within their companies. The co-authors offered practical steps ranging from improving business models to incentivising exemplary sustainability practices within their organisations.

According to Ajogwu, inculcating sustainability into the operations of companies necessitates customised approaches, as there is no universal solution for organisations.

He noted: “For a company to be sustainable close attention needs to be paid to the industry they operate in, how they need to survive the environment, and changes they need to make. Boards need to be more aggressive in taking their agenda and particularising it in sectors they work in and to sustain the purpose for which the entity was set up.”

Ajogwu stressed the need for boards to pay closer attention to balancing the 3Ps of People, Profit, and Performance.

He maintained that boards need to constantly ask themselves how they are performing in all three key areas in order to set the agenda for companies, particularly in light of the threatening macroeconomic conditions.

“Responsible, forward-looking boards need to engage the management of companies to prioritise how the 3Ps have been threatened by external factors beyond their control and craft strategies on how to respond to the changes,” he said.

On her part, Newton stated that the need to change the mind sett of people on the concept of sustainability was a motivating factor in writing the book.

According to her, educating the mind-set of boards by prompting them to evaluate their current positions and chart a clear pathway to achieving sustainability in their business operations was integral in the book’s development.

“Materiality assessment is extremely crucial when transitioning into a sustainability-focused organisation as there is no one-size-fits-all approach to it. As the first step, materiality assessment helps engage all stakeholders within an organisation to better understand where they see the company and acquire the key steps that need to be taken,” Newton added.

The co-authors addressed concerns regarding the perceived financial burden of adopting environmentally friendly business practices, emphasizing a shift from sustainability being viewed as optional to being deemed essential. According to Ajogwu, SAN, the increasing preference among investors for sustainable companies underscores the necessity for businesses to integrate sustainable practices into their operations. He noted that institutional shareholders prioritize substantive sustainability efforts over superficial “greenwashing,” ensuring long-term investment security and resilience over short-term profit gains.

Buttressing the need for sustainability practices in organisations regardless of their sizes while eschewing the false financial burden narrative associated with going green, Newton shared an anecdote of how a big hospitality firm she consults for reduced its electricity bill to the tune of 30 per cent by switching to energy-efficient light bulbs She stressed that SMEs could tap into the gains of going green by first appraising their business operations to identify the areas where they could be green and make the requisite changes.