Sustainability: How far can we go, and what’s holding us back?

As a board member of the UN Global Compact Network Robin Mellon has a bird’s eye view of how we’re tracking in sustainability. On Wednesday and Thursday (30 and 31 October) he will be co-MC with Susan Moylan-Coombs at the organisation’s conference where local and international leaders will place a sharp focus on the risks of inaction for businesses and the economic opportunities to be gained by taking a proactive approach.

Look around some Australian industries, read the technology updates, or see the rapid changes in energy systems and their efficiencies, and you might assume that we’ve fixed the climate crisis and we’re on the way to sustainable systems.

But we are past the halfway mark to the 2030 deadline for the UN Sustainable Development Goals (SDGs), and we’re not half done. We face significant challenges including the urgency of the energy transition, an economy historically reliant on fossil fuels, and our per capita material footprint that’s currently one of the highest in the world. Today, only 17 per cent of the SDGs are on track.

Yet as the recent UN Global Compact “Forward Faster” report points out, despite geopolitical tensions, a complex regulatory environment and a growing tug-of-war in the environmental, social and governance (ESG) debate, the SDGs continue to be a driver of business growth and innovation, and the business case grows stronger.

Three-quarters of the world’s 250 highest revenue companies now use the SDGs to align their sustainability strategies, while 96 per cent of board directors expect continued or stronger focus on ESG in the next five years. At the same time, global ESG assets are expected to surpass $US40 trillion by 2030.

And among investors, 85 per cent report that ESG leads to better returns, and two-thirds of consumers are more likely to buy from responsible brands. These figures come in tandem with new sustainability disclosure standards being adopted worldwide.

So, what’s holding us back here in Australia? Research suggests three key factors:

1. A separation of technology from the traditional knowledge of First Nations people
2. A lack of understanding about the consequences of our inactions
3. A focus on either profit or purpose, but seldom both

Ancient wisdom alongside emerging technologies

Thousands of generations of First Nations people have been custodians of these lands, and many of the concepts being discussed today are not new’ideas but based around traditional practices, cultural heritage and natural phenomena.

Circular economy principles, conservation, and resource efficiency are all concepts advanced by Aboriginal and Torres Strait Islander people in different ways across different lands; today’s “smart building design” is reflected in everything from ancient wisdom to plant growth and from weather cycles to anthills.

As we know, many man-made materials take thousands of years to break down in landfill. Nowadays the longevity of products or their end-of-life disposal is barely considered while designing items.

Yet Aboriginal and Torres Strait Islander people have used locally available natural materials like wetland grasses and reeds for thousands of years for weaving useful and multifunctional everyday objects which are completely biodegradable.

Indeed, Aboriginal and Torres Strait Islander people have transformed materials from their local environment using skill, innovation and science, using their highly developed knowledge of designs, processes and materials to make tools and implements.

First Nations people are regarded as the greatest pattern making culture in the world, and most tech, especially AI, is based on pattern making.

Yet ancient wisdom is frequently overlooked in favour of new and emerging technologies, or the latest enthusiasm.

Thousands of generations of culture would indicate we would do better to learn from First Nations people about what works, and doesn’t work, on these lands, so that we can work in partnership to achieve these technological advancements. Centring First Nations voices and experience is an important part of embracing technology that should not be considered separate but the foundation stone.

The new Shark in Shark Tank Australia and co-author of the influential book Checkmate Humanity: the how and why of Responsible AI, Dr Catriona Wallace said: “We have to explore the intricate relationship between technology and human behaviour to achieve real change and innovation. First Nations people are regarded as the greatest pattern making culture in the world, and most tech, especially AI, is based on pattern making. We need much greater engagement of our Indigenous community in tech design if we want any hope for the current trajectory of tech and sustainability to be a good one.”

At the recent Global Nature Positive Summit 2024, the WWF Australia’s First Nations Principal Adviser Cliff Cobbo confirmed: “Nature positive is not a new concept for First Nations peoples. It’s in our DNA. We have a physical and spiritual connection to nature. It’s our inherent right and responsibility to look after and care for Country and we’ve been doing so for thousands of generations.”

The consequences of our inactions

The triangle of inaction shows how key players pass the buck to each other when it comes to action against climate change, which results in everyone failing to act.

The triangle of inaction was established by Pierre Peyretou, a low-carbon economy specialist at the French Business School in Paris. His describes how taking responsibility for action in the face of the climate emergency is avoided.

The triangle of inaction shows how key players pass the buck to each other. Each side explains that it’s the fault of the other two that no action is being taken. In other words, the population, the state and business point the finger at the others to explain why things aren’t changing.  

To break the triangle of inaction, we need to raise awareness of the importance of changing now and on a large scale, with active collaboration between the three parties essential across:

• Public participation putting increased pressure on public policies and companies
• Strong political leaders capable of making tough decisions on behalf of citizens.
• Corporate social responsibility improving companies’ ESG practices overall.  

In Tim Buckley’s recent conversation with The Fifth Estate about sustainability and the energy transition, he outlined not only that “We haven’t seen anything yet,” but that “This is a massive opportunity.” Not only is Australia partnering with world leaders in energy transition transformation technologies, but there is a variety of solutions becoming available to us.

There is no silver bullet, according to Buckley, but “vehicle to grid charging will be part of the solution, along with time-of-day pricing, smart meters, home energy and batteries and utility scale batteries. Methane gas peakers will be “a small but important part of the solution” and so too pumped hydro storage, grid transmission, and the flexibility of systems like aluminium smelters.

These are the opportunities that our inaction may lead us to miss out on, rather than seize with both hands.

At the same time, according to a 2023 Globescan study, two-thirds of corporate affairs professionals are worried about greenwashing accusations, up from just over half in 2022. Could this be worsening our inaction; a fear of being called out? In an environment of greater scrutiny on ESG claims, the UN Global Compact’s Forward Faster campaign and resources enable companies to establish goals that foster trust based on credible, ambitious and measurable sustainability commitments

The forthcoming international event, UNiting Business LIVE Australia: Sustainability in Action is designed to help business leaders better understand the risks of inaction, and the economic opportunities to be gained by taking a proactive approach to their operations and business models.

UN Assistant Secretary-General and chief executive officer of the United Nations Global Compact Sanda Ojiambo will speak at the event, sharing some of the practical steps business leaders can take to achieve the 2030 Sustainable Development Goals.

In advance of the event, Ojiambo said: “We face an ever-expanding list of larger and more critical decisions, but also equally critical opportunities demanding our attention. The consequences of our actions – or inaction – are greater than ever. So, in 2024, let’s be braver and more ambitious than ever before.”

Laggards focus on profits or purpose, winners focus on both

According to UNGCNA executive director, Kate Dundas, “many Australian businesses are missing out on an opportunity to marry profit and purpose, and to build companies that actively help solve the world’s problems, while remaining resilient in a changing landscape.”

“With new mandatory climate-related financial reporting …it’s imperative that businesses future-proof and set themselves up for success in the year ahead.”

Ojiambo said: “The private sector has a key role to play in addressing worldwide sustainability challenges, not only in the context of environmental sustainability, but also in driving social justice by paying living wages and closing the gender gap in decision-making roles.” Not just a focus on profit, but mutually supportive focus areas.

As Dundas reminded us: “With new mandatory climate-related financial reporting coming into place in Australia in 2025, it’s imperative that businesses future-proof and set themselves up for success in the year ahead. Boards, executives, investors and employees alike will need to navigate these changes, including across departments such as finance and sustainability.”

However, sustainability isn’t just about the environment and reporting on the impact a business has on biodiversity. Sustainability includes social sustainability, building equity into business models and maintaining good governance practices. Importantly, each of these environmental, social and governance (ESG) principles need to be integrated. Leaders are already building this into their business models.

As Kate Dundas concluded: “We’re at a turning point in history. There is so much opportunity ahead for impact-led business models that boost the bottom line in the long term. The leaders who bury their heads in the sand do so at their peril.”

The UNiting Business Live Australia: Sustainability in Action conference will take place on 30-31 October in Sydney, with a few tickets still available, and key speakers including the Hon Matt Kean, Chair of the Climate Change Authority, former Australia Post chief, now CEO Team Global Express, Christine Holgate, AI entrepreneur and Shark Tank Australia investor Dr Catriona Wallace, the Hon Tanya Plibersek MP, business leader and co-author of Net Positive, Paul Polman, Deputy Chair of the NSW Indigenous Chamber of Commerce Narelle Anderson, Australian Council of Superannuation Investors CEO Louise Davidson AM, Intrepid Travel CEO, James Thornton, and Fortescue board member and former CSIRO CEO, Dr Larry Marshall.

This article is supported by advertising from the UN Global Compact.