Sustainable strategies

Several companies in the uae have broadened the scope of corporate social responsibility (CSR) by homing in on eco-friendly projects. These programmes, they feel, will make the world a better place.

Major business houses always had a strong head, but now they also seem to possess a large and green heart.

Till recently many companies were only worried about their bottom line. Issues like community development, eco conservation and adhering to, and encouraging, ecologically safe practices rarely featured on their project plans.

But that has all changed. Today several large organisations are willing to look beyond their immediate short- and long-term goals and are keen to give back to society without expecting any fiscal gains.

And they have a name for it Corporate Social Responsibility (CSR). This is not a compromise worked out by big companies to placate their consumers or society. On the contrary it is a hard-edged business decision that seeks to enhance a company's profile and brand equity. Today, CSR is not limited to sponsoring a musical evening or helping organise a flower show in aid of a local charity. Organisations today are acutely aware that they are partners with the government and other administrative agencies and have to make a more substantial contribution towards community development. It is a culture that is being nurtured by the expectation of people. People who want popular brand-driven organisations to not just rake in profits, but to also integrate their goals with that of the community on a continued and long-term basis.

Anita Roddick, owner of The Body Shop, seemed to get it right. In her book Business As Usual, she says: "In terms of power and influence... there is no more powerful institution in society than business. The business of business should not be about money; it should be about responsibility. It should be about public good, not private greed."

The good news is that there are many companies in the UAE that have expanded their roles of CSR and have made eco-sustainability a very focused goal. Several of them have adopted 'green' projects that may not have given them instant recognition or boosted their image overnight, but are sure to have a lasting impact on communities around them.

In collaboration with the government, environmental agencies and municipalities, some companies have proved that they are keen to make the world a better place.

Dolphin Energy, for instance, has successfully collaborated with the Abu Dhabi government, and the Emirates Wildlife Society in association with the World Wildlife Fund (EWS - WWF) on a two-year programme to revive and conserve many important coral reefs in the UAE and Qatar.

At the recently held CSR Arabia Awards, the chairman of the Emirates Environment Group (EEG), Habiba Al Marashi, pointed out that the need of the hour was for all organisations to rise above superficiality and integrate sustainability and social responsibility as part of their core strategy. Despite economic challenges, CSR has not been affected and companies are marching forward with specific and definite policies underscoring their responsibility to the community and future generations.

Dolphin Energy is not alone. The Al Fahim group sponsored the Ghaf Tree Campaign to raise public awareness about the multiple values of the ghaf, while encouraging UAE nationals to vote for the ghaf to be designated a natural treasure of the UAE. The National Bank of Abu Dhabi organises internal campaigns to spread awareness about ecological issues. It also encourages staff to avoid wasting paper and to recycle it as best they can. There's more: there's Géant and Le Marché's no plastic bags initiative and Al Dar and Emirates Foundation sponsored the Interactive Enviro-Spellathon, an online environmental educational programme aiming to raise awareness about the local environment among thousands of schoolchildren across the UAE.

Then there are Nokia and Nokia Siemens Networks (both part of WWF climate savers) and Canon ME which sponsors the polar bear project in the Arctic to name just a few companies that have taken on the task of heightening awareness about ecological issues.

Commenting on this encouraging trend in the UAE, Ida Tillisch, director of business development and marketing, EWS-WWF, says, "Consumers all over the globe are demanding sustainable goods and services and want to see companies demonstrate that they are working towards a more sustainable future and a healthy planet. This of course causes sensible companies to take action and look into how they can conduct business and at the same time contribute to improving the local environment.

''Many companies have realised that growing their businesses and helping the planet are more than compatible, they are complementary. In my opinion CSR is not just a buzzword, it is here to stay, and companies need to implement CSR [practices] in their long-term strategies and take action if they want to survive in the market."

A real paradigm shift has happened; most organisations are now voluntarily opting for eco-sustainability as part of their integrated programme of economic development, acting like true collaborators along with the government on social welfare.

"While traditionally it is the governments that give businesses environmental targets, we saw at the G-8 recently that many of the world's leading companies are already ahead on the issue, and are urging governments to deliver a strong framework to reduce CO2 emissions globally," says Tillisch.

''Also, we see some of the world's most successful and high-profile companies are already leading by setting aside large sums [of money] for eco-conservation. Companies [have realised the] benefits of a living planet. After all, you can't do business on a dead planet."

Tillisch believes that over the years her organisation and other non-government environmental agencies have acquired a special role in terms of giving direction and shape to these CSR policies. "EWS-WWF can help companies, and we have a range of tools that we use. On one side of the spectrum are the traditional tools that we use to push businesses, including campaigns, scorecards, etc. But perhaps more interesting is the growing set of tools that we are using to pull or positively encourage companies to do the right thing. A clear trend in our private sector engagement is cooperation focused on solutions, maximising mutual benefit with a strong element of challenge, and encouraging our corporate partners to achieve ambitious targets to improve their environmental performance."

In the near future she sees CSR in the region acquiring a more articulate and well-defined shape. "The business of business in the UAE, as elsewhere, must be in creating value from products and services that are good for people and the planet, and in providing solutions to our needs and problems. This is really the only sustainable option for our planet and thus the only viable business plan beyond the very short term."

Tillisch feels that in their tireless campaign for environmental sustainability the smallest organisation with a limited CSR budget can also play a big role in financing eco-projects. Every little company, however small it may be, has an important place in the scheme of things. "Every little donation helps. In fact we can't do it without support from the corporate sector. Of course, if a company has a substantial budget for the environment, we can implement a conservation or education project right away. But companies that only have a small budget for CSR can also help significantly by donating perhaps Dh5,000 or Dh15,000. We have a corporate membership programme created especially for these companies. It is a great way for companies to contribute to environmental projects and at the same time get involved and be introduced to the environmental issues in the UAE and the region."

Companies in the Corporate Membership Programme receive information and advice on how to get on the route towards more sustainable business practices while at the same time contributing to a living planet. Companies interested in supporting EWS-WWF can e-mail Tillisch on itillisch@ewswwf.ae

There are a few companies in the UAE who have an impressive CSR record. They illustrate what impact a responsible organisation can have on our community. Take for example Masafi, HSBC and Shell.

It was a massive coordination programme for which the company appointed recycling inspectors and collection personnel, set up recycling centres and launched a campaign in schools and organisations to instil in them the significance of this venture.

Their efforts paid off, and this year nearly 34 per cent of the four-gallon PET bottles were redeemed. Nearly 179 mega-tonnes of plastic were sourced through this campaign to be sent to the recycling centres. The organisation was not only awarded the business achievement award for 2008, but also won the Idea of the Year award at the Ideas Arabia Conference.

Natascha Edelmann, head of marketing at Masafi is spearheading this initiative: "Despite our successful diversification over the past three years, our natural mineral water business still contributes 60 per cent of our total revenue. The implication is that we as a company are dependent on nature for a sustainable business," she explains. "Masafi's recognition of this dependency leads us to focus on the environmental platform of CSR. We have developed a 3-tier strategy that helps us offset our carbon footprint by initiatives that are geared to collecting and disposing of our (and competitor) PET wastes properly and to educate the public and future generations.

''In October 2008 we started with our unique corporate recycling service. Today we are delighted to announce that we have signed up more government and private organisations to the Corporate Recycling Service than ever before. In addition to 24 schools and 10 public recycling centres, we have signed up with 89 companies across all of the emirates.

"We have enrolled 52 new partners in 2009. The natural source at Masafi also dictates our product and packaging development for all new launches and businesses.

"If the attribute of 'natural' is not respected, we do not pursue it as this forms a core pillar of the values for which Masafi stands.

"Last year we introduced the 'brown carton' to reduce the amount of lead-based paint used in design, therefore making it more environmentally friendly. It's these grassroots, team-building, immediate-result-bringing things that inspire us. It's a small world and it's a small effort we just have to keep making them."

For three years, HSBC worked in collaboration with the EWS-WWF and Fujairah municipality to conserve the UAE's national heritage, the picturesque 129-km Wadi Wurayah, an important water resource that has been home to a variety of endangered species of animals such as the Arabian tahr and Arabian leopard. The wadi is located within the Ecoregion 127 "Arabian Highlands and Shrub lands", one of the WWF Global 200 Ecoregions which regroup the richest, rarest and most distinctive of the earth's natural habitats.

A constant monitoring of the area for three years as part of the conservation project revealed the presence of, among others, 12 species of mammals, 73 species of birds and 17 species of reptiles and amphibians.

More than 300 species of plants have been documented in the area, including species that are found only in wetlands such as Typha domingensis and the unique orchid species indigenous to the UAE, Epipactis veratrifolia.

It was a significant achievement, not only for the environmental agency and the country, but also a feather in the cap for the ongoing CSR programme of the bank. Kaltham Al Koheji, chairperson of HSBC in the Community Middle East Foundation discusses the project, "At HSBC we start from the premise that what is good for society is good for HSBC, because we believe that business and society are interdependent.

"Strong economic growth is what HSBC relies on to continue to build its business, and this requires an educated society and skilled workforce living in a healthy and sustainable environment.

"Managing the environmental footprint of our global operations is now firmly embedded throughout HSBC, and we saw some significant achievements in 2008.

"Globally and locally HSBC has invested in new technologies that help cut costs as well as carbon emissions; we set new targets for water, waste, carbon dioxide and energy usage; and we have taken further steps to ensure consistent application of our sustainability programmes throughout our operations. Apart from the Wadi Wurayah Project, HSBC has also collaborated on a five-year partnership between the bank and The Climate Group, Earthwatch Institute, Smithsonian Tropical Research Institute and WWF. HSBC's $100 million investment the largest ever corporate donation to each of these four world-class environmental charities aims to combat the urgent threat of climate change by inspiring action by individuals, businesses and governments worldwide.

"The basis for any initiative to protect the environment is intrinsically linked to ensuring the welfare of the people. This global HSBC initiative to create awareness and take action now will positively impact upon the environment."

For many years Shell Middle East has been an active partner with the government, working on a variety of community and environmental projects in Dubai and Abu Dhabi. Among some of the more successful environment projects have been the coral reef conservation project off the Abu Dhabi coast, and the conservation of mangroves, turtles, etc in collaboration with the Marine Environment and Research Centre (MERC). A highly successful ongoing project by Shell is the institution of the Better Environment Award (BEA) for students in the age group of 14 to 18 in UAE schools. Citations and medals are presented to teams working in the area of atmospheric pollution and conservation by doing things such as recycling paper, plastics, etc. and in the field of environment studies more generally. Shell also supports the Enviro-Spellathon programme that helps thousands of students acquire a rich vocabulary and awareness of environment conservation related words and concepts through quizzes.

Omar Al Qurashi, communications manager, Shell Markets (Middle East) Limited prefers to call his company's initiative sustainable development. "Sustainable Development (SD) and Corporate Social Responsibility (CSR) are sometimes used interchangeably in external debates. In our organisation we talk about sustainable development. For us, contributing to sustainable development means helping meet the world's growing need for energy in economically, socially and environmentally responsible ways.

"The sustainable development mindset is a way of thinking and of approaching all our day-to-day activities, everyone in the company needs to have it. This is embedded in our Business Principles, which since 1997 have included our commitment to contribute to sustainable development. This is how we balance short- and long-term interests, integrate economic, environmental and social considerations into business decisions and regularly engage with our many stakeholders. This mindset is also about being determined to tackle seemingly insurmountable environmental and social problems through creativity and perseverance, to secure a responsible energy future.

"Through our portfolio and products, we deliver benefits by providing the energy that people and modern economies need in order to prosper, and we help reduce impacts by offering cleaner products like natural gas and biofuels. Through our operations we look to deliver lasting economic and social benefits, for example by employing local people and using local contractors and suppliers, and by setting a good example through our business practices and ethics.

"At the same time, we work to reduce environmental and social impacts in such ways as: safeguarding the health and safety of our employees and neighbours; reducing disruptions to communities; lowering our emissions including greenhouse gases; reducing our impact on biodiversity; and using less energy, water and other resources.

"It starts with understanding the social and environmental impacts and opportunities for both our operations and our products. It continues with delivering benefits and reducing impacts to the communities where we operate and to the society as a whole.''

He emphasises the difference between the two concepts: "In Shell we talk about sustainable development and not corporate social responsibility, for the following reasons:

- CSR, as a title, loses any reference to improving environmental performance. Whereas sustainable development covers both social and environmental dimensions.

- CSR, with its focus on 'responsibility', emphasises meeting requirements or paying back debts, rather than harnessing markets and capturing new business opportunities from addressing environmental and social impacts effectively. Yet harnessing markets is the only way to get truly large-scale change, and address the massive environmental and social challenges like climate change that the world faces. That is partly why discussions of CSR tend to focus on social investment activities.

- Unlike CSR, sustainable development rightly emphasises development in its title, and hence the central role of economic growth in alleviating poverty (and Shell's business success).

"In these tough economic times, our business success depends more than ever on winning and maintaining our neighbours' trust. Trust depends on relationships. And relationships are only built over time: by listening to the many different points of view in a community."

The change in society has been slow and gradual, but over the years it has gained momentum to become substantial enough for all those still waiting in the wings to join the eco-sustainability juggernaut.