What you need to know about business sustainability in Nigeria
-
Upload
adiya-atuluku -
Category
Business
-
view
551 -
download
2
Transcript of What you need to know about business sustainability in Nigeria
What you need to know about business sustainabilityin Nigeria
April 2016
By Adiya Atuluku
What’s business sustainability anyway?
Business sustainability is all about balance!Businesses that can meet their needs of today without compromising theirs’ & others’ needs of the future are sustainable businesses
The key lies in balancing the triple bottom-line
People + Planet + Profit
A quantitative research revealed that about half of the people surveyed do not understand the concept of ‘business sustainability’.
But most of those that understand the concept care about it and are willing to take action for sustainability…given enabling circumstances.
A qualitative survey showed that of those that don’t understand the concept, they think of sustainability in terms of longevity of profit alone.
Do Nigerians know and care about sustainable businesses?
Yes
No
I don't get
39%
6%
55%
Poll ran on Twitter with 897 respondents, March 2016
All things being equal, would you champion sustainability in your office?
Yes
No
I don't get
42%
8%
50%
Poll ran on Twitter with 661 respondents, March 2016
All things being equal, would you choose a business practicing sustainability first?
What are some of the laws that you should know? (1/5)
United Nations Convention on Climate
Change
Is an environmental treaty negotiated in 1992 with the aim of reducing greenhouse gas (GHG) emissions to stabilize concentrations in the atmosphere. It sets a framework by which
countries can negotiate their own GHG emission
limits
Montreal Protocol on Substances that
Deplete the Ozone Layer
Is an international treaty aimed at
protecting the ozone layer by phasing out
the production of substances that are
responsible for ozone depletion
The Equator Principles
Is a voluntary set of standards for identifying,
assessing and managing
environmental and social risk in project
financing
ISO 14000
This family of standards contains tools that can be used by companies
to manage their environmental
responsibilities. In particular, ISO
14001:2015 sets criteria for a company’s
Environmental Management System.
Some Key International treaties
What are some of the laws that you should know? (2/5)
Other Key International treaties
• Basel Convention on the Control of Trans-boundary Movements of Hazardous Wastes and their Disposal
• Stockholm Convention on Persistent Organic Pollutants • Rotterdam Convention on the Prior Informed Consent
Procedure for Certain Hazardous Chemicals and Pesticides in International Trade
• International Convention on Oil Pollution Preparedness, Response and Co-operation
• International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage
• Convention for Co operation in the Protection and Development of the Marine and Coastal Environment of the West and Central African Region
• Oil in Navigable Waters Act
• Protocol Concerning Cooperation in Combating Pollution in case of Emergency
• African Convention on the Conservation of Nature and Natural Resources
• International Convention for the Safety of Life at Sea• International Convention on Civil and Political Rights• Constitution of the International Labor Organization• International Convention to combat Desertification in those
Countries Experiencing Serious Drought and/or Desertification, particularly in Africa
• Convention on Biological Diversity • Vienna Convention for the Protection of the Ozone Layer • United Nations Convention on the Law of the Sea • Global Reporting Initiative (GRI)• United Nations Environment Program – Finance Initiative
What are some of the laws that you should know? (3/5)
National Policy on Environment, 1989
This describes guidelines for
securing a quality & healthy environment,
and maintaining or restoring ecosystems for the preservation
of biodiversity
National Guidelines and Standards for
Environmental Pollution Control in
Nigeria, 1991
This serves as a guideline for
monitoring and controlling industrial and urban pollution (air, noise, waste, water, soil, etc.)
Pollution Abatement in Industries, Industries Generating Wastes Regulation, 1991
This imposes restrictions on the
release of toxic substances, and
states requirements monitoring pollution
from industrial machineries, etc.
Environmental Impact Assessment Act, 1992
The Act makes EIA mandatory for any major development
project that may have negative environmental and social impacts, and
describes the procedure for risk assessment and
reporting
Some Key National Laws
What are some of the laws that you should know? (4/5)
Other Key National Laws & Regulations
• National Environmental Standards And Regulation Enforcement Agency (NESREA) Act 2007
• National Effluent Limitation Regulation, 1991 • Management of Hazardous and Solid Wastes
Regulation, 1991• Minerals and Mining Act, 2007• Quarries Act, 1969 • Explosives Act, 1967• Nature Conservation and Environmental
Development Organization, 2001• Factories Act, 1987• Mineral Oils (Safety) Regulations, 1997• Criminal Code • Forestry Act, 1958 • Land Use Act, 1978
• The Endangered Species Act, 1973 • Harmful Waste (Special Criminal Provisions) Act, 2004• Petroleum Act, 2004• Niger-Delta Development Commission (NDDC) Act, 2004• National Oil Spill, Detection and Response Agency
(NOSDRA) Act 2006 • Water Resources Act, 2004 • National Environmental Regulations 2009 (for various
sectors, e.g. telecoms, manufacturing, mining, food, apparel, construction, seas, electronics, automobiles, pharmaceuticals, etc.)
• Hydroelectric Power Producing Areas Development Commission (Establishment, Etc.) Act, 2010
• National Policy on Climate Change, 2012• National Energy Policy, 2003
What are some of the laws that you should know? (5/5)
Other interesting developments in the Nigerian regulatory space are…
Nigerian Electricity Regulatory Commission mandated 50% renewable energy procurement in
electricity sector in 2015
A National Adaptation Strategy and Plan of Action for Climate Change Nigeria (NASPA- CCN) was
developed in 2011
The banking industry developed the Banking Sustainability Principles in 2012 for assessment of
Environmental & Social Risks before financing
Energy Commission of Nigeria and UNDP developed the Renewable Energy Master Plan in
2005
FEC approved the National Renewable Energy and Energy Efficiency Policy (NREEEP) in 2015 for the
electricity sector
Nigerian government has committed to localizing and implementing the 17 Sustainable
Development Goals (SDGs), as well as adopting ISO 26000 (Social Responsibility)
Who are some of the key players that you should know? (1/2)
The key players (shown in no particular order) in the sustainable business space shown below are from both private and public sectors
Amina J MohammedCurrent Minister of Environment,
former SA to Sec-Gen of UN & former SSA to President on MDGs
Adejoke Orelope-AdefulireCurrent Senior Special
Advisor to the President on the SDGs
Dr. Chris OgbechieFounder & Director of First
Bank Sustainability Centre of Lagos Business School
Benedict Bengioushuye AyadeCurrent Cross River state governor,
former senator, Chairman of Ecological Fund, & Environmental
Inventor
Chris EdehExecutive Director of African
Alternative Energy Association & Grassroot Empowerment
Initiative
Ahmed SandaFounder of Ashawa Consults &
pioneer environmental consultant working with public
& private sectors
Ini OnukFounder of Thistle Group & experienced sustainability &
development consultant, & convener of Sustainable Conversations
Nnimmo Bassey Architect, renowned
environmental activist & former Chairman of Friends of the
Earth International
Who are some of the key players that you should know? (2/2)*Please note that this list is by no means exhaustive & is in no particular order.
Toyin OlakanpoLawyer & child rights activist, founder of CSR Children & the
popular weekly tweetchat on SDGs
Bekeme MasadeSocial entrepreneur, PR specialist, and Executive Director of CSR-In-Action
Ken EgbasPresident of the Social
Enterprise Report & Awards (SERAs), the top CSR honors
Dr. Aisha Usman MahmoodSpecial Advisor to CBN Governor on sustainable banking & former
DG of National Center for Women Affairs
Priscilla Achakpa Environmental activist and
executive director of the Women Environmental Programme (WEP)
Esther AgbarakweSA to Minister of Environment &
experienced environmental activist & development professional
Ugochi AnyakaAward-winning environmental
journalist & editor of EcoNigeria online magazine
Femi Oye Co-founder of SMEFunds &
founder of first carbon trading network in Nigeria
The key players (shown in no particular order) in the sustainable business space shown below are from both private and public sectors (cont’d)
What are some of the companies that you should watch? (1/2)
Some Nigerian corporations taking business sustainability seriously are…
Click the logos to learn more about each organizationEach of them report regularly on sustainability activities
There still needs to be a shift from CSR to business sustainability on a strategic level in many of these companies
But there are many more companies that carry out Corporate Social Responsibility (CSR)
These companies have specifically put sustainability in their business models, as well as reporting according to international standards
And these companies help by providing expertise…
What are some of the companies that you should watch (2/2)?
Click the logos to learn more about each organizationThese are some of the 31 companies in the coalition
The Coalition will work together to take action for sustainable development across Nigeria and share lessons learnt
These companies came together voluntarily to form the Nigerian Business Coalition for Sustainable Development
The Coalition is affiliated with the World Business Council for Sustainable Development.
Why do these companies bother?
Manage risks that may affect their current and future operations, especially with external pressures from climate change affecting ecosystems & societiesMake sure that they are in line with any laws and regulations that govern all the areas they operate in
Meet the changing needs of their customers, especially as the public is getting more aware of sustainability issues
Make their employees proud that they work with them and that they are contributing meaningfully to societyHave a culture of learning and innovation to solve society’s problems
Manage their reputation with the communities they operate in & gain recognition e.g. SERA Awards
Get access to finance from investors & organizations that care about sustainability Increase their chances of a strong, long-term financial performance
What’s happening in Nigeria that should you know about?
Click the news screenshots to learn more
Sustainable development has been on
the news lately!
What trends should you take note of?
Nigeria has the right laws in place, but more effort is required from regulators to monitor and enforce these laws accordinglyMany corporates, especially those with foreign head offices, are taking business sustainability more seriously, and getting more strategic with their CSR programmes. But many sustainability/CSR practitioners in companies are from a marketing or corporate communications background; there needs to be a shift towards more sustainability officials playing a more strategic roleThe banking industry is leading business sustainability in Nigeria by coming together to develop their banking sustainability principles
SMEs in the sustainability space are characterized by sustainable products (instead of processes or CSR projects), particularly renewable energy (with focus on solar)There is a growing awareness of the need for business sustainability amongst CEOs, politicians and state governors
The concept of business sustainability is catching on with the public, but it’s only about half way through
Renewable energy seems to be the most promising sector in the sustainable development space – with a lot of foreign investment & political support. Watch out for product innovations and more indigenous companies in this space.
Final Words
The 17 Sustainable Development Goals have gained a lot of support in Nigeria, first with the agreements at COP21 and later with federal and state governments engaging senior advisors on
the SDGs. There are also conversations around this in the business space, notably the Sustainable Convos and the online #SDGSaturdays. For once, people are watching and talking.
It is advised that to contribute meaningfully, businesses should assess their operations to find out which of these sustainability issues are material to them, and then empower their Sustainability Officers to incorporate these into the business strategy. The organizations can then work towards
implementation through partnerships with internal stakeholders, suppliers, similar or complimentary companies, relevant associations, and the Nigerian government.
People | Planet | Profit
Adiya Atulukuwebsite: adiyaatuluku.com| twitter: @adiyaatuluku| email: [email protected]