At a time of heightened environmental concerns and changing circumstances due to the COVID-19 pandemic, prioritizing environment, social and governance (ESG) issues toward becoming a “conscious company” has become more important than ever.
So what does it mean to be a conscious company? Diverse panelists answered this question at a virtual discussion Gojek held on this very issue.
According to Chitra Hepburn, head of APAC ESG for Morgan Stanley Capital International (MSCI), a conscious company is one that took a 360-degree view of its actions and behaviors.
“[The company] does not only focus on the financial outcome, but on its lasting ecological, social and economic impacts, directly or indirectly, on the ecosystem it is a part of,” Hepburn said during the panel discussion.
The latest MSCI data shows a growing global trend in ESG investing in recent years. Signatories to the United Nations’ Principles for Responsible Investment (PRI) has now grown to more than 3,000 investors that manage over $100 trillion assets under management (AUM).
In Indonesia, on-demand services giant Gojek is leading the growing tech industry in setting new standards for driving sustainable and conscious business practices. The technology company recently pledged to achieve the “Three Zeros” by the year 2030: zero emissions, zero waste and zero barriers.
Upon announcing its commitment the company's first annual Sustainability Report, or ESG report, Gojek started making significant strides toward meeting its targets through three pillars named GoGreener, GoForward and GoTogether.
The report details the Gojek’s progress and vision for the thorough implementation of ESG practices. Gojek’s ESG report is the first to be compiled by a Southeast Asian technology company in line with international standards, namely the Global Reporting Initiative (GRI) and Sustainability Accounting Standards Board (SASB).
During the panel discussion, Gojek group head of sustainability Tanah Sullivan shared how extensive consultations led to the birth of the company’s the pledge.
“Prior to announcing our Three Zeros commitment in April, we went through a long and complex process, a series of consultations involving internal and external parties competent in the ESG field, including listening to input from customers, driver partners and merchants, as well as investors and policy makers,” Tanah explained.
“This process was very important for us to [undertake] so that it is not a mere promise, but rather is completely integrated into our business.”
Tanah also highlighted some of the challenges she faced in the pursuit of sustainability, mainly in aligning sustainability priorities with business priorities. She also noted that this was a challenge that many companies were facing worldwide, irrespective of industry or geography.
"Right now, the most important thing for us is to continue working with all of Gojek's business lines by adhering to science, data-based methodologies and transparently informing the public of the company's performance related to ESG issues," she said.
Robbert de Vreede, the Unilever executive vice president of global foods, said the consumer goods multinational was a company with a purpose, and that it aimed to make sustainable living commonplace.
“Actually, that already started out for us more than a hundred years ago when one of our founders, Lord Lever, brought Sunlight soap to the public in order to make hygiene accessible and fight bacteria in order to prevent people from falling ill,” he said.
“In terms of integrating with the business, it has to happen like that, because to make our impact sizable, we have to take it into our business model,” added de Vreede, who is also on the executive team for foods and refreshments at Unilever.
If the company was only interested in storytelling or sponsoring good deeds, he continued, it would never become impactful.
“We believe it’s good business. We’ve been around for a hundred years, and it’s also our mission to be around for another hundred years,” he said. “So we have to ensure that we support and keep our planet and our population healthy, because that is also our future potential.”
At the same time, businesses must also demonstrate how sustainability can create value for its top and bottom lines, as well as find scalable and self-sustaining solutions.
Antonia Gawel, deputy head of the Centre for Global Public Goods at the World Economic Forum, said companies must first step back and look at their business models. After that, they should examine the data to establish their ESG risks and opportunities.
Even so, it could be challenging to find the right response toward sustainability amid the myriad of initiatives and projects that had been launched, she said. In turn, this made it all the more important to select the right efforts for the company to invest in.
