Supported by the Wheeler Institute for Business and Development, the Social Impact Club at London Business School recently held a panel on “The Role of Corporates in Sustainability and Development.” This panel, moderated by Elias Papaioannou, featured industry leaders Amit Mehra from Accenture, Jorge Carpio Aguilar from Citi, and Emma Reyburn from UNICEF. The discussion centered around the evolving role of corporations in sustainability, highlighting successful initiatives, challenges, impact measurement, stakeholder collaboration, and emerging trends.
Evolution of Corporate Sustainability
Jorge Carpio Aguilar shared how corporate sustainability has evolved from being a skeptical concept to a mainstream priority. He emphasized the importance of comprehensive resource management and aligning corporate missions with sustainability goals. Financial support and community involvement are essential for achieving long-term environmental impact.
Emma Reyburn highlighted the crucial role of public-private partnerships. She shared UNICEF’s collaboration with Microsoft, which combined resources and technology to create the Learning Passport, a tool that helps displaced children continue their education. Such partnerships are key to scaling impact and addressing urgent development needs.
Amit Mehra provided a historical perspective, identifying two key phases: the initial focus on philanthropy and a later phase where sustainability became a business value driver. Recently, sustainability has become a mainstream concern, driven by compliance and risk management. Amit’s work involves integrating sustainability into the core strategies of large corporations.
Successes and Challenges in Sustainability Initiatives
Amit Mehra discussed a successful initiative focused on managing emission profiles across FMCG supply chains. By collaborating with startups, civil society organizations, and technology providers, companies can track carbon emissions and ensure ethical practices. However, he also shared a less successful project in India aimed at promoting sustainable agricultural practices. The project struggled to scale because it required farmers to pay for the service, though it has since evolved through large company partnerships.
Jorge Carpio Aguilar reiterated the importance of communication and cooperation across teams. He shared Citi’s ambitious goal of achieving net-zero emissions by 2050, with significant milestones by 2030. This goal requires top-level commitment and rapid learning from both successes and failures.
Emma Reyburn discussed UNICEF’s transformation and the increasing role of corporate partnerships. Private sector funding has become essential for supporting social development and humanitarian aid. Emma emphasized the importance of rigorous reporting and tracking of fund usage and impact.
Future Challenges and Trends
Amit Mehra identified key challenges for the next decade, including setting and achieving sustainability goals. Data accuracy and cultural change within organizations are crucial. Companies need reliable data to understand their emissions profiles and make informed decisions. Amit also highlighted the need for collaboration within and between sectors to share best practices and data.
Emma Reyburn stressed the importance of collaborating closely with governments and tailoring strategies to local needs. Detailed data and individual stories are essential for understanding the hardships children face and guiding program decisions. She also emphasized the role of data in securing funding and demonstrating impact to donors.
Balancing Standardization and Specific Data Needs
Amit Mehra discussed the complexity of data in sustainability reporting. While standardization helps make metrics comparable, companies must also collect granular data critical to their business strategies. For example, a beverage company might prioritize water impact data, while a pharmaceutical company focuses on access to medicines.
Future Trends and Opportunities
Emma Reyburn highlighted the increasing role of digital financial mechanisms in sustainability. Programs like the Today & Tomorrow Initiative aid climate resilience in developing countries by enabling swift financial responses to weather events.
Amit Mehra identified two main trends: risk management and compliance, and the need for significant financial investment. Collaboration with development finance institutions and innovative financing methods will be vital to bridge the funding gap.
Jorge Carpio Aguilar noted the diverse opportunities for young professionals in sustainability. Companies are seeking individuals who understand the benefits and implementation of sustainable practices, with a growing demand for skills in risk management, compliance, and innovative financial schemes.
Balancing Business Value with Social Impact
Amit explained that balancing business value with sustainability impact is crucial. Embedding sustainability into core business strategies ensures these efforts are not sidelined. He also noted that more companies are tying sustainability-related metrics to executive bonuses, making sustainability a core part of business strategy.
Emma Reyburn emphasized the financial value of sustainable investments. Educating C-level executives about these benefits is crucial for gaining their support and ensuring long-term commitment to sustainability goals.
Conclusion
The panel discussion underscored the increasing importance of public-private partnerships, the critical role of comprehensive data and targets, and the necessity of balancing business value with sustainability impact. Successful initiatives, challenges, and future trends were highlighted, with a focus on the growing opportunities for young professionals in sustainability-focused roles. Embedding sustainability into core business strategies and executive compensation is crucial, reinforcing the integral role of sustainability in modern corporate practices.
