Sustainable Competitiveness

Economic development over the years has lead to an increased look into environmental and social concerns as part and parcel of productivity and economic growth.  Data has shown that increasing productivity and economic growth went hand in hand with better and improving living conditions. 

More recent data suggests that trends in economic growth no longer tell the whole story. The need to better understand the relationship between economic competitiveness and social and environmental sustainability has been revealed by events such as the “Arab Spring”, the rise of unemployment in many advanced economies – particularly among the young and less skilled population –, increasing income inequalities and social unrest in rapidly-growing economies as well as by increasing pressure on natural resources or the high levels of pollution.

The World Economic Forum’s annual Global Competitiveness has embarked on a major effort to deepen understanding of how sustainability relates to competitiveness and what this means for the development path of economies.  Since 2011 the Forum presents the  Sustainability-Adjusted Global Competitiveness Index (GCI). This new measure aims to assess the “the set of institutions, policies and factors that make a nation remain productive over the longer term while ensuring social and environmental sustainability”. measures not only the propensity to prosper and grow, but also integrates the notion of “quality growth”, taking into account environmental stewardship and social sustainability.

 

This innovative approach builds on the Global Competitiveness Index (GCI), highlighting the importance of competitiveness as the key indicator of prosperity. The GCI is then adjusted by two new pillars: The social sustainability pillar, which measures the “set of institutions, policies and factors that enable all members of society to experience the best possible health, participation and security; and to maximize their potential to contribute to and benefit from the economic prosperity of the country in which they live” and the environmental sustainability pillar which measures “the institutions, policies and factors that ensure an efficient management of resources to enable prosperity for present and future generations”. 

One of the most important findings of this analysis suggests that there do not seem to be any necessary trade-offs between being competitive as well as socially and environmentally sustainable.

The results presented in this edition are preliminary and tentative as the work continues. The lack of high-quality available data and a more evidence-based understanding of the complex relationship between competitiveness and environmental and social sustainability prevent us from presenting more conclusive results.

WEF original article 

Corporate Sustainability Leaders

In the world of corporate responsibility, CSR has become a “buzzword” and is becoming part of many industries, mining and exploration included.  CSR, is alternatively known as being a “good corporate citizen” or paying attention to the triple-bottom line of “people, planet, profit.”

This year DNV Two Tomorrows conducted its 9th annual global research of corporate responsibility best practices using the Tomorrow's Value criteria, a research tool designed to answer "Who are the CSR leaders?' question.  It looked at best practices in the 25 largest companies by revenue in the Americas, Europe and Asia and 19 Dow Jones Sustainability Index supersector leaders from 2011. 

Who are the leaders in CSR?  Typically consumer brands and technology companies gain much of our attention and create a lot of hype surrounding their marketing campaigns.  They are creating important approaches that will revolutionize the way we do business. 

Outside of these limelight sectors is another category, industries with historically risky, messy and challenging operations - petroleum, mining, heavy manufacturing.  Although rarely seen as models of sustainability, many have pioneered leadership in some of the most important areas of corporate responsibility.  These systems are not perfect, and when they fail, consequences can be disastrous and fatal.  But it is this risk that has driven such leading edge practices. 

 
Overall, companies are learning that there are some practical and profitable applications by focusing on protecting the environment, being proactive regarding health and safety of employees, or working with indigenous and local populations beyond what is required by government regulations.

What do you see as the future trends for CSR?