Will the lastest government policy declarations on sustainable development affect CSR managers?

Will the lastest government policy declarations on sustainable development affect CSR managers? First the government is making a big play about greening its own procurement. Therefore there is a business case for private companies to improve the impact of thier own products and services.

Companies are used to governments issuing lofty policy declarations, launching new strategies and publishing well-meaning plans in response to public concern – only to move on to other worries until an election comes round again. Is the latest flurry on sustainable development any different?

We think it is, and what’s more this collection of developments will affect CSR managers. First, the government is making a big play about greening its own procurement. In the UK, the public sector accounts for around 40% of economic activity (whoever wins the election), so there’s an immediate business case for private companies to improve the impact of their own products and services. Second, there are more incentives (that means subsidies) for companies to take action – well worth CSR managers checking that their firms are taking full advantage where the costs of action currently outweigh immediate benefits.

Third, sustainability issues are now creeping into government rules and regulations, such as local spatial development plans. That means getting planning permission is going to be harder unless you can demonstrate environmental as well as social and economic impacts.

And fourth, on reporting all this: the suite of indicators is now developing into something useful, just as companies themselves are making progress with their own sustainable development KPIs. The opportunity exists in CSR reports to show how company action is directly contributing to national and international goals. The obvious one is carbon dioxide emissions, where the Kyoto protocol has now come into force in many countries. Companies should be reporting trends in total emissions, not just efficiency ratios that mask the effects of growth. After all, travelling the road to perdition less quickly is NOT what sustainable development is all about.

Corporate Citizenship Briefing, issue no: 81 – April, 2005