· 6 min read
Once upon a time, humanity was trapped in multiple crises, with climate change, biodiversity loss, and wars threatening life on Earth. Amid the complacent and those who had given up, some enlightened individuals understood that something about the system needed to change. They recognized that greed and money were overtaking health and survival. This group was made up of researchers, activists, educators, entrepreneurs, and sustainability practitioners—people who decided to dedicate themselves and much of their time to creating value and positive change.
What is the difference between sustainability practitioners and change-makers?
Choosing to work in sustainability is a mission! It is a mission to make a positive impact and leave a lasting change in the status quo. Without a healthy planet, neither humanity nor the economy can thrive. From this standpoint, the next step is to decide whether the primary role of sustainability practitioners should be simply to comply with assessments, regulatory requests, and standards…Does that actually deliver the positive change we all need?
Reducing a firm's negative environmental and social impacts while increasing transparency and trust is part of the story. Working on a firm’s sustainability team requires designing, delivering, and proving its sustainability efforts and ultimately communicating this information through well-crafted sustainability reports. However, one might question whether sustainability practitioners should go a bit further because that is what change-makers do.
As a sustainability practitioner, I myself question every day if I am in the right role to make the most significant possible change. Thus far, AWorld has given me the opportunity to assist sustainability practitioners in other businesses in using CSRD and other regulations as part of a broader narrative of change. Think about the most brilliant people in history, such as Rosalind Franklin, Marie Curie, Antonio Meucci, Galileo Galilei, Cristoforo Colombo, and many other pioneers. Would their impacts have been the same had they not shared their knowledge and awareness with the world?
Beyond compliance: How CSOs can transform businesses and society through stakeholder engagement
Creating value for the many communities sustainability practitioners encounter in their work is one of the best outcomes they can achieve. These communities—namely employees and co-workers, consumers, suppliers, the territorial community where the firm operates, boards of directors, and investors—are collectively referred to with the rather old-fashioned term 'stakeholders.' Not to forget that stakeholders are people who have their own families in their own districts or towns and their own circles of friends. These are the people who, along with many others, are not only part of the climate crisis but also part of the solution. In business discussions, a phrase often heard is 'stakeholder engagement is a key driver of change,' as it provides sustainability practitioners with what I refer to as the 'impact multiplier.' Through stakeholder engagement, ESG practitioners can shift people's perceptions of sustainability and even encourage a deeper understanding of why it should be central. Sustainability should be prioritized in business discussions and decision-making, just like revenues, and it should also be seen as a catalyst for change in people's daily lives.
The term 'stakeholders' in the private sector is rather obsolete. It was first introduced in 1963 by the Stanford Research Institute and further developed by Edward Freeman, who defined a stakeholder as any entity without which a company cannot survive.Present regulations, such as the Corporate Sustainability Reporting Directive (CSRD) in the European landscape, clearly state the importance of stakeholder engagement. UnderCSRD, in both key ESRSs (ESRS 1 (3.1) and ESRS 2 – Disclosure requirement SBM-2 and IRO-1, 53b (iii) Disclosure Requirement), stakeholders should be kept informed at various stages of the sustainability report data production. The CSRD uses the following words: 'Engagement with affected stakeholders is central to the undertaking’s (firm’s) ongoing due diligence process and sustainability materiality assessment. This includes its processes to identify and assess actual and potential negative impacts, which then inform the assessment process to identify the material impacts for the purposes of sustainability reporting.'
From the double materiality matrix standpoint, stakeholders (e.g., the own workforce: ESRS S1, and suppliers: ESRS S2) are required to assign weight to the approximately 90 topics that define the firm’s unique double materiality matrix. Stakeholders should also provide valuable feedback for the continuous improvement of the firm’s sustainability practices. Indeed, stakeholders are required to offer comments and suggestions about the firm's sustainability strategies, plans, and policies (ESRS 2). To accomplish this, stakeholders need to be engaged and educated on sustainability topics; otherwise, they will underestimate the importance of the process and fail to deliver the much-needed added value.
AWorld: The enabler to become a change-maker yourself
At AWorld, we firmly believe that a firm is more than just a business - it’s a large community of people working together to drive improvement. This is why we believe that sustainability practitioners should use their privileged positions of knowledge to advocate for sustainability education and stakeholder engagement around sustainability topics—not solely those that matter to the firm but also to humanity at large, helping to operate within planetary boundaries.
Call me a dreamer, but I strongly believe that many sustainability practitioners understand the significance of their role in society. By educating and engaging with stakeholders, alongside all other compliance-related duties, sustainability practitioners can become the change-makers humanity needs them to be!
Usually, risks in climate change science and management are measured as 'what if not,' but at present, I wonder, 'what if?' Using this narrative, I see all CSOs, Heads or Directors of Sustainability, Sustainability Managers, Specialists, Analysts, and Consultants worldwide as a network of action-oriented people looking to create a positive impact in their communities and, therefore, in society. AWorld is here to to upport them. AWorld developed the app endorsed by the United Nations to support climate action and the Sustainable Development Goals. Named "Best App for Good 2023" by Google, it helps users adopt sustainable practices through gamified tools, AI, and impact measurement. Companies like Cognizant, Enel, and Nestlé use AWorld to engage stakeholders and align with sustainability goals.
On the business side, AWorld supports companies by addressing the needs and aspirations of stakeholders, and building a solid foundation for a business’ long-term success and growth can be built. However, to have a bigger impact with spillover effects outside the firm, stakeholder engagement must be effective and integrated . With the AWorld app, sustainability practitioners can make a genuine positive impact on society and the environment and become real change-makers!
The power of stakeholder activation
This article is grounded in the passion and leadership needed to create lasting positive change. As stated earlier, humanity is currently living in a time of multiple crises, and those who understand the processes and are aware of solutions should act for good. Join us in this mission. Together - we can succeed!
illuminem is proud to partner with AWorld in advancing sustainability oriented stakeholder engagement.
