Global Compact Principle 8
"Businesses should undertake initiatives to promote greater
environmental responsibility."
What is environmental responsibility?
In Chapter 30 of Agenda 21, the 1992 Rio Earth Summit
spelled out the role of business and industry in the sustainable development agenda as: "Business
and industry should increase self regulation, guided by appropriate codes, charters and initiatives
integrated into all elements of business planning and decision-making, and fostering openness and
dialogue with employees and the public."
The relevant principle in the Rio Declaration says we have the responsibility to ensure that
activities on our own yard should not cause harm to the environment of our neighbours. Society also
expects business to be good neighbours. Business gains its legitimacy through meeting the needs of
society, and increasingly society is expressing a clear need for more environmentally sustainable
practices.
What steps could companies take to promote environmental responsibility?
Steps that the
company could take to promote environmental responsibility would be the following:
- Re-define company vision, policies and strategies to include the 'triple bottom line' of
sustainable development - economic prosperity, environmental quality and social equity.
- Develop sustainability targets and indicators (economic, environmental, social).
- Establish a sustainable production and consumption programme with clear performance objectives
to take the organisation beyond compliance in the long-term.
- Work with suppliers to improve environmental performance, extending responsibility up the
product chain and down the supply chain.
- Adopt voluntary charters, codes of conduct or practice internally as well as through
sectoral and international initiatives to confirm acceptable behaviour and performance.
- Measure, track and communicate progress in incorporating sustainability principles into
business practices, including reporting against global operating standards.
- Ensure transparency and unbiased dialogue with stakeholders.
In doing the above, the existence of appropriate management systems is crucial in helping the
company to meet the organizational challenge. Key mechanisms or tools for the company to use would
be (a) assessment or audit tools (such as environmental impact assessment, environmental risk
assessment, technology assessment, life cycle assessment); (b) management tools (such as
environmental management systems and ecodesign) and (c) communication and reporting tools (such as
corporate environmental reporting and sustainability reporting).
(Last update 12 February 2009)
