Julija Menise, Senior Vice President at TDi Sustainability, guides us towards positive change regarding new sustainability standards
Introducing new sustainability standards or developing multi-stakeholder initiatives that unite an entire industry is never easy, but it is often necessary to create the type of systemic change that can’t be achieved by one organisation alone. Improving standards for the future takes cross-party collaboration and multiple organisations working towards a common goal.
Here, I outline key examples from many years of experience in bringing together cross-industry groups to effect positive change – as well as sharing my top tips on how to overcome common challenges.
Today’s business landscape presents several challenges when it comes to responsible sourcing, with global issues impacting organisations of all sizes. A proliferation of regulations and standards is causing already stretched teams to push their resources to the limits, with some businesses subject to as many as 100different audits per year. At the same time, political leaders in the U.S., Europe and elsewhere are changing ESG (Environmental, Social and Governance) regulations, creating an uncertain future.
Despite this uncertainty, adhering to a common set of values and demonstrating that your organisation aligns with relevant, robust ESG standards brings several benefits. It provides an edge at a time when competition for business is fierce and can level the playing field for smaller organisations that are being judged against larger counterparts. When standards and initiatives are correctly planned and executed, with a multi-stakeholder approach at the core, they can lead to industry-wide improvements and push organisations to make better decisions for a more sustainable future.
Uniting for a common cause
One clear example of how this approach has worked in practice is the creation of CiPPPA (the Circularity in Primary Pharmaceutical Packaging Accelerator), a not-for-profit, industry-wide initiative with a mission toprovide solutions that improve the circularity of primary
pharmaceutical packaging. This collaborative initiative was introduced because there was an obvious gap impacting the entire industry. Primary pharmaceutical packaging is subject to stringent regulations to ensure its safety, efficacy and regulatory compliance, but the long-term environmental effects of packaging disposal are rarely considered. The creation of CiPPPA, which is project-managed by TDi Sustainability, has allowed organisations to come together in a non-competitive space and work together to develop potential solutions to these industry-wide challenges.
Similarly, the Solar Stewardship Initiative (SSI) was created to fill a void impacting a number of stakeholders – this time in the solar PV sector, where a raft of ESG and supply chain traceability issues were emerging. Stakeholders include manufacturers and buyers of solar PV modules, as well as civil society, NGOs, intergovernmental institutions, international financial institutions, academics and independent experts. With the backing of more than 50 solar organisations at its inception, the SSI is the only holistic sustainable supply chain solution with the support of a majority market share of the solar PV industry, working to collaboratively foster responsible production, sourcing and stewardship of materials in the solar value chain.
Guiding principles
Through the creation of these initiatives, and countless others that I have been involved in over the past decade, the following guiding principles have helped to achieve success.
1) Adopt a multi-stakeholder approach
One of the defining shifts over the last decade has been towards multi-stakeholder approaches as a benchmark for credibility in the development of sustainability initiatives and new standards. Whether driven by investor expectations, regulatory requirements or consumer pressure, the trend is clear: no single actor can or should define what “good” looks like in isolation.
2) Lead with purpose
Standards and initiatives need a purpose – particularly given the aforementioned raft of measures that already exist. Before considering creating something new, ask yourself why you’re doing it – what gap does it fill, and is there a genuine need for something to be done differently? The best initiatives have representation from every impacted party, ensuring there is an equal share of voice throughout the process. One of the most persistent challenges is in addressing the inherent imbalances that exist between stakeholders – for example, between a multi-billion-dollar corporation and civil society. It is vital that the latter feels just as valued and able to share their opinion as the former.
3) Set realistic timelines
Gone are the days of taking more than ten years to develop a cohesive sustainability standard or new initiative – we don’t have that luxury in today’s regulatory climate. Laws are changing at such a quick pace that standards need to keep up; anything that takes longer than two years to create and introduce risks becoming obsolete before it even begins.
4) Transparency is key
From fair voting rights to a representative board, transparency and balance are vital. If stakeholders can see that the initiative or standard is built on a fair structure, they will be more likely to participate and support the outcome. Considerations should include how voting is structured. Who has veto power? How are different stakeholder groups able to express concern or block a decision that’s not aligned with the overall mission? Are the results of assessments shared publicly? Communicating clearly and openly with members of the initiative and external stakeholders from the start will boost the chances of success.
With sustainability expectations rising from all sides, the pressure is on whole industries to respond with solutions that are both credible and agile. Development of cross-industry solutions is one way to achieve this. The most impactful innovations will be the ones that are born from a shared purpose that encourages collective action, with clear objectives. To keep pace with the ever-changing geopolitical and regulatory landscape, solutions need to be smart, fast, and have clear governance. Ensuring that new standards and initiatives are meaningful, functional and fair requires far more than just ticking stakeholder boxes. It requires real design thinking, governance expertise and a deep commitment to collaboration.
