Implementing Environmental Sustainability across Businesses in Nigeria: Can environmental sustainability thrive in Nigeria?
“We are not passive inhabitants of Earth. We give Earth its shape and form. We are responsible for Earth”. These are the words of George Perkins March recognised by some as America’s first environmentalist, in his book published in 1864, ‘Man and Nature’.
Sustainability is an unending process that requires constant effort and improvement in Nigeria considering the different developmental challenges facing the Nation. Environmental sustainability simply involves making decisions and taking actions that are in the interests of protecting the natural world, and its vital aspect in achieving sustainability in business. This article focuses on one of the triple bottom line of sustainability: environmental sustainability. Specifically, it discusses how businesses in Nigeria and Africa can implement and improve their approach in reducing their environmental footprint.
March describes the problem of how man utilizes, and damages the natural world at a time when the earth’s natural resources were considered by many to be infinite. March’s work helped to launch the modern conservation movement.
Nigeria is ranked very low (145th position out of 190 countries) in the Ease of Doing Business Index by the World Bank in 2018. The country is characterized with problems of infrastructure, policy consistency and implementation, multiple taxation, corruption, poor governance among others. Businesses are mostly hinged on capitalism, which lay huge emphasis on profit maximization and satisfying its financiers. Thus business heads and managers are left with the responsibility to utilize resources for maximum value creation, where success or failure is determined by financial figures. In addition the environment in Nigeria is not yet sustainably developed because improved quality of life has not been achieved as man’s activity continues to degrade the environment.
Businesses are considered to be major contributors to environmental degradation even as they occupy a strategic position in society and could trigger significant change. Furthermore handling environmental management in Nigeria was seen as a chief responsibility of the government in previous years. But in recent times, government has not been able to assume this responsibility due to increasing demands from other aspect of the economy. Businesses are therefore expected to lead in the area of environmental sustainability. It is only when environmental sustainability is attained, that the maintenance of healthy ecosystems, which is essential to the process of improving the livelihood of the world’s poorest countries, which depend on fields, forests and waters, can be attained.
Understanding the Business case of Environmental Sustainability
Even when evidences have shown that environmental sustainability as very beneficial to businesses, most businesses continue to focus more on social and economic concerns than on environment. But the business case for environmental sustainability can be demonstrated with the following facts:
- Environmental sustainability in business has the potential to reduce business operating expenditure in the long term. A good example is reduction in energy cost when a business incorporates energy efficiency measures.
- It has a competitive edge in attracting customers and investors as modern consumers and investors keep themselves aware of social and environmental issues and are thus well informed about what business are acting responsibly towards the environment.and suitable to invest in
- As environmental sustainability gain increased attention and becomes heavily regulated, businesses with an environmental sustainability structure will gain the trust of regulators and have more advantage over many competitors.
The business case for environmental sustainability may not rely on immediate, short term returns. But on understanding the risks associated with doing nothing and on the opportunities innate in early preparation for the future. Also it is important to recognize that the benefits of environmental practice can be directly internalized today, particularly in some industries by using raw materials more efficiently, preventing brand damage, selling to the sustainable niche among others. This explains why the relationship between environmental action and financial returns has yielded such mixed results in varying industries.
Identifying Relevant Business Issues
Core business operations and activities should be identified. Furthermore the most material issues should be prioritize into high, medium and low. Business drivers, interests, and/or needs usually inform this step. For example, a mining company might be keen on their environmental risk management and regulatory compliance, while a manufacturing company might prioritize resource availability, cost of capital and corporate reputation.
Implementing Environmental Sustainability
The Harvard Business Review article: ‘Making Sustainability Profitable’ suggests the following three approaches for companies to ensure their environmental efforts pay off financially.
- Businesses can start by introducing little changes to their processes such as (From installing solar panels on rooftops, utilizing recycling bins, and switching off lights after hours, there are a number of ways both employers and employees can adjust their behavior to operate in an environmentally responsible way). which can generate substantial savings, which can be used to fund advanced technologies that can result in more efficient production.
- Businesses can take a long term view and engage in more expensive methods of sustainability operation that eventually led to dramatically lower costs and higher yields.
- Business can spread their sustainability efforts to the operations of their customers and suppliers, in the process devising new business models that competitors find hard to emulate.
In addition, Linda Brennan in her paper ‘Implementation of environmental sustainability in business: suggestions for improvement’ recommends that businesses can build high level of commitment to environmental sustainability by formulating measurable goals and objectives with analysis, implemented policy, and a proactive attitude towards environmental sustainability, instigate projects, policies and engage in environmental partnerships.
Sustainability Reporting
Another practice that will raise environmental sustainability in a business is the use of sustainability reporting, which helps companies to monitor environmental sustainability initiatives more accurately across all areas of operations. By having a single platform for financial and sustainability reporting, businesses will be able to eliminate multiple data collection of the same information and ensure the consistency of sustainability metrics and effortlessly incorporate vital sustainability statistics with financial statistics and build brand reputation. The Global Reporting Initiative (GRI), an independent non-governmental organization provides an effective way to meet this demand.
Often, in Nigeria, political attention on environmental problems comes only after a catastrophic event. In his paper, Okanlawon Simon indicated that the Nigerian government is yet to regard environmental management as a priority in National development. Environmental agencies are set up but with insufficient operating resources. My next article will consider the role of government in developing policies that would support environmental sustainability.
Bibliography
1. Fairtel Ireland Business tools. Environmental sustainability in Business
2. George Perkins Marsh. 1864. Man and Nature. https://www.thoughtco.com/george-perkins-marsh-1773618
3. Knut Haanaes, David Michael, Jeremy Jurgens and Subramanian Rangan. 2013. Making Sustainability profitable. The Comprehensive Business Case for Sustainability. Havard Business review.
4. Linda Brennan, Wayne Binney, Janelle McCrohan and Narelle Lancaster. 2011. Implementation of environmental sustainability in business: suggestions for improvement
5. Moses Nosike. 2016, April 9. How SMEs can achieve sustainability in unhealthy business environment. Vanguard Newspaper. https://www.vanguardngr.com/2016/04/smes-can-achieve-sustaianbaility- unhealthy business environment/
6. Ogbo, A. I., Agbaeze E. K., Eneh, Nnajiofor C. J., Isijola, D. O. and Chukwu, B. I.. 2017. Strategies for achieving sustainable economy in Nigeria taking into consideration the acceptable stakeholders. Vol.11(19), pp. 582–589, October 2017
7. Okanlawon Simon Ayorinde, Odunjo Oluronke Omolola And Soyebo Olugbenga O. 2015. Challenges of Sustainable Environmental Management in Nigeria. Vol.6, №5, 2015Journal of Economics and Sustainable Development
8. Oracle . 2011. Sustainability Matters: Why — and how — business is widening its focus to consider the needs of all stakeholders. https://www.nap.edu/read/13152/chapter/2
9. Rebecca Henderson. 2015. Making the Business Case for Environmental Sustainability. https://www.hbs.edu/faculty/Publication%20Files/15-068_c417331e-2146-40b6-8dfc-aa9a029db119.pdf
