Case Study: First Sentier Investors – Achieving B Corporation Certification
About First Sentier Investors First Sentier Investors is a global asset manager with a strong culture of stewardship and a commitment to responsible investing principles. It has been a signatory to the UN Principles of Responsible Investment since 2007. First Sentier Investors’ active investment teams, whether in-house or individually branded, manage assets exceeding A$230 billion* on behalf of institutional investors, pension funds, wholesale distributors and platforms, financial advisers and their clients. It believes that capital allocation can be used as a force for good and incorporates ESG considerations into its investment approaches to make better decisions on behalf of clients, the broader society and the environment. The Challenge First Sentier Investors sought a global certification for its responsible business practices and a designation that would represent its commitment to meet high standards of social and environmental performance. The Solution The B Corp Certification provides an external and global framework to assess and improve First Sentier Investors’ operations, complementing its responsible investing principles to clients, employees, its shareholders and the wider community. The Approach In April 2020, First Sentier Investors engaged The Growth Activists’ ESG practice lead Kirsty Simmonds. Kirsty is one of the first B Lab-trained consultants and advisers in Australia and New Zealand, specialising in guiding large businesses through B Corp Certifications. As a large corporate, First Sentier Investors followed B Lab’s Multinationals and Large Enterprise Businesses certification path. This is a staged approach with milestone reviews and thresholds to meet during that time. It typically takes businesses a couple of years to complete. This process for Large & Complex businesses involved: The final stage was for First Sentier Investors to adjust its constitution to meet the legal requirements to become a B Corp and to engage across the business on announcement. The Deliverables Guide First Sentier Investors through the process to certification. The Growth Activists provided expert advice, troubleshooting, and project management to ensure accountability and progress within the agreed timeframe. The Results First Sentier Investors obtained its B Corp Certification in November 2022 with an outstanding score of 107.2, joining a select group of fewer than 200 large businesses worldwide with this distinction. Its substantial size allows the organisation to exemplify best practices. Kirsty and TGA now work with First Sentier Investors to lead a periodic roundtable event for large businesses to share insights, fostering a forum for leaders to share how large businesses can be a force for good. *First Sentier Investors’ gross AUM, inclusive of associated strategic partnership with AlbaCore Capital Group, as of 31 December 2023.
Case Study: Bassike – Achieving B Corporation Certification
About Bassike Bassike is an Australian designer fashion brand that champions local production of high-quality, sustainably-made wardrobe essentials. With eight stores across the country and products stocked by over 80 retailers worldwide, Bassike is regarded as an Australian leader brand in the designer fashion segment. The Challenge In 2019, Bassike made a strategic commitment to elevating responsible business practices as a core part of its purpose and vision. Recognising the challenge of turning their commitment into action, the leadership team engaged The Growth Activists as external ESG experts for guidance. The Solution The Growth Activists had previously worked with Bassike, supporting annual strategic planning and implementation. As part of this work, B Corp certification was identified as Bassike’s best ESG global accreditation option. This certification demonstrates the brand’s commitment to ethical and responsible business practices and the positive impact of its ESG efforts. The Deliverables The Growth Activists guided the Bassike team through the B Impact Assessment (BIA) process, identifying actionable items and operational practices that could lead to significant additional points, referred to as Impact Business Models (IBM). After receiving the BIA report and comprehensive action list, the Bassike team began implementing the next stage, concentrating on improving their policies and operations. Upon completion, they submitted for certification through B Lab, which involved standard evidence verification. The Results Bassike became a Certified B Corp in June 2022, achieving an outstanding score of 92.6 – an exceptional achievement for a fashion retail business. It also demonstrated remarkable success in the BIA by scoring strongly in two impact areas, Community (28.9 points) and Environment (26.1 points). The BIA process and subsequent implementation plan helped the Bassike leadership team identify ethical and responsible business practices that were already implicitly ingrained in the organisation, but importantly the framework helped them articulate them more explicitly and effectively. The BIA also helped them to recognise strengths, identify areas for improvement to meet the standards, and underscored the importance of documentation of evidence of processes and policies as foundational to good ESG practice. Furthermore, the BIA process led to an enhancement of existing operational procedures. Notably, Bassike was able to enrich its Sustainable Ethical Manufacturing Index (S.E.M.I.), a proprietary internal framework developed to guide internal decision-making around Bassike’s supply chain. S.E.M.I. screens and ranks Bassike’s fabric mills, manufacturing partners and the material composition of every Bassike product across three pillars; environment, labour and animal welfare. The BIA framework enabled the Bassike team to cross-reference standards and enhance the process. Finally, the process highlighted the opportunity to strengthen the brand’s ESG narrative for critical stakeholders, particularly for employees and customers, who offered valuable insights into material issues that matter. This led to an employee education program enabling store staff to understand what it means to be a B Corp and engage with customers confidently on the positive impact of the brand on people and planet. In 2023 Bassike also published its first impact report, leveraging the important chain of evidence already created through the B Corp certification process to tell their impact story to all their stakeholders.
Modern Slavery Risks and Compliance: What Boards and Executives Need to Know
Modern Slavery is the umbrella term spanning illegal acts that remove people’s freedom The United Nations defines modern slavery as “an umbrella term covering practices such as forced labour, debt bondage, forced marriage, and human trafficking. Essentially, it refers to situations of exploitation that a person cannot refuse or leave because of threats, violence, coercion, deception, and/or abuse of power.” Despite being illegal globally, modern slavery persists in all regions of the world, including Australia. Globally, modern slavery is increasing not reducing Modern slavery is a gross violation of human rights. Global authority, Walk Free Foundation based in Australia, calculates that 50 million people worldwide are trapped in modern slavery, with an estimated 41,000 of them in Australia. This is a 10 million increase on the numbers estimated in 2016. Forced labour is the most prevalent problem which makes it a business issue 28 million – nearly two-thirds of all cases are forced labour cases, linked to global supply chains, impacting workers across a diverse range of sectors and at every stage of production. Past reports from Walk Free revealed that a horrifying 12% of those in forced labour are children. Walk Free Global Slavery Index 20231 identifies the top five high risk sectors are electronics, garments, palm oil, solar panels and textiles. With such high % related to labour practices there is a significant responsibility on businesses to identify and fight it. This involves actively identifying, preventing, and mitigating slavery risks within operations and supply networks. By thoroughly investigating and addressing issues, businesses not only protect vulnerable populations but also set a positive example for their stakeholders, contributing to wider societal efforts against modern slavery. Modern Slavery Legislation and Reporting The Commonwealth Modern Slavery Act 2018 came into effect on 1 January 2019. The legislation introduced an annual Modern Slavery Reporting Requirement for large businesses and entities operating in Australia that generate more than A$100 million in annual consolidated revenue. “The dual aim of the Act is to increase business and government awareness of these modern slavery risks, and support entities to identify, report and address the risks.”2 Attorney General’s Department A review after three years resulted in 30 recommended improvements Similar to the UK Modern Slavery Act process, Australia’s Modern Slavery Act 2018 was reviewed after three years in practice, to identify what works and what needs to be improved. In 2023, Professor John McMillan, AO, led the review with support from the Attorney-General’s Department. The objective was to assess the effectiveness of the Act in its first three years of operation.IFRS S1: Sets out overall disclosure requirements for sustainability-related financial information. Hundreds of submissions received The Review invited submissions, receiving 136 written submissions from domestic and international stakeholders, 30 responses to the online questionnaire and 496 responses to the online survey for reporting entities. This delivered extensive feedback provided valuable insights into the Act’s strengths, weaknesses, and areas for improvement. Review recommendations The review made 30 recommendations to the Australian Government. An Australian Anti-Slavery Commissioner will be appointed The appointment of the Australian Anti-Slavery Commissioner is the first direct implementation of a key recommendation from the 2023 Modern Slavery Act review. The Government is currently in the process of selecting the inaugural Commissioner. Responsibilities of the Commissioner a blend of compliance, education and advocacy The Commissioner’s role will be to ensure compliance with the Act’s requirements by businesses and government agencies, raise awareness by educating the public, businesses, and government about modern slavery and its impacts, and advocacy by representing the interests of victims of modern slavery and advocating for their rights and support. The government will provide updates on its progress in implementing some of the remaining recommendations in the coming months and years. This could include legislative changes, policy updates, and additional resources allocated to combating modern slavery. Other recommendations: Expand scope of legislation, due diligence and reporting quality Lower the revenue threshold from $100 million to $50 million to include more organisations The review proposed reducing the reporting threshold from $100 million to $50 million significantly expanding the number of companies required to report. The proposed reduced reporting threshold would include specific guidance for small and medium-sized enterprises to meet their reporting requirements. Tighten due diligence The most substantial recommendation is to impose a mandatory due diligence obligation on reporting entities. This would require companies to assess and address modern slavery risks within their supply chains. Introduce guidance to high risk sectors and penalties for inadequate reporting A further recommendation is to introduce penalties for non-compliance or inaccurate reporting to strengthen enforcement. And providing tailored guidance for industries or sectors with a higher risk of modern slavery, such as agriculture and garment manufacturing, was also recommended. What does this mean for Boards and Executives? Recognise that good practice enhances business value Many businesses view compliance with the Modern Slavery Act as an additional expense or a burden. However, reframing compliance with the regulations as a strategic, business practice improvement and value creating investment can deliver qualitative and quantitative benefits. Adopt an impact, risk and opportunities mindset Purposeful Boards and executives can approach Modern Slavery reporting obligations through the lenses of impact, risks and opportunities, in the same way that they approach environmental and other social responsibilities. Success comes from a two-part response: Systems and Culture Walk Free estimates that $468 billion of goods imported by G20 countries are at risk of modern slavery. Systems This means modern slavery can exist in any business or supply chain, regardless of industry or location. By assuming that risks exist, you can adopt a thorough and vigilant approach to combating modern slavery. This means diligently examining every aspect of your supply chain, including direct suppliers (Tier 1) and their suppliers (from Tiers 2 to Tiers 5-6 including importers, exporters and trading companies). Culture Integrating anti-slavery measures with your company’s core values and ESG strategies underscores the importance of the issue. This alignment ensures that the fight against modern slavery is prioritised throughout the organisation, reinforcing your company’s dedication
Case Study: Avant Dental -Marketing Engagement
The Challenge By 2019, the Australian dental lab market had become highly competitive and commoditised, leading dental labs to engage in a price-driven race to the bottom. Avant Dental found themselves struggling to stand out amidst the sea of competitors and were ranked 10th in the market. They recognised the need to break free from commoditised competition and achieve growth, so they partnered with The Growth Activists (TGA) for business growth through integrated marketing. Their key objectives were to acquire new dentist customers, drive revenue growth, and move up from the number 10 spot in the dental lab market. The Approach TGA adopted a data-driven approach to devise a comprehensive growth strategy for Avant Dental: The research, analysis, strategy, and planning phases were finalised in late 2019. Following this, the implementation of brand, communications, and marketing initiatives began in early 2020, coinciding with the onset of the COVID-19 pandemic. The Deliverables The marketing engagement between TGA and Avant Dental included the following deliverables: Avant Dental achieved remarkable results through their strategic partnership with TGA: In conclusion, Avant Dental were able to rise above a saturated market, becoming a leader in the dental lab sector. With a strong brand and united digital marketing, they achieved remarkable growth, widened their market presence, and established a solid foundation for lasting success. Avant Dental’s experience highlights how a well-executed, data-driven marketing strategy can drive a business to lead in the market and achieve lasting growth.
Mandatory Climate Reporting is Looming: Are You Ready?
In the rapidly evolving landscape of corporate responsibility and environmental stewardship, one certainty is changing boardrooms and C-Suites forever: Mandatory Climate Reporting. In a keynote speech to Deakin University earlier this year, ASIC Chair Joe Longo spoke about how important it is, “the growing interest in environmental, social, and governance (ESG) issues is driving the biggest changes to financial reporting and disclosure standards in a generation. This is a transformational issue for global markets, and we need to be ready to meet that change at every step of its development.” Governments and regulatory bodies worldwide are stepping up their efforts to ensure businesses are transparent about their environmental impact, particularly their greenhouse gas (GHG) emissions. This transparency aims to provide stakeholders—investors, customers, regulators, and the community—with a clear picture of a company’s contributions to climate change and the measures taken to mitigate these effects. These regulations are not just a trend; they are becoming a fundamental aspect of doing business. Countries like New Zealand and members of the European Union have already implemented stringent climate reporting standards. Japan, Singapore, and the United States are also moving in this direction, with some countries adopting stricter measures than others. With the clock ticking towards the regulations’ implementation in our backyard, every Australian business leader should ask, “Are we ready?” Understanding the ISSB’s role Multiple stakeholders, including accounting boards, investors, multinationals, and regulators, have expressed frustration over the need for interoperability between various sustainability standards. Their two primary concerns are: Lack of Consistency: Different countries and organisations use various sustainability reporting frameworks, leading to a lack of comparability and transparency, especially for investors. Limited Focus on Materiality: Sustainability reports do not always emphasise the most financially material climate-related risks and opportunities for companies. A harmonised global approach offers significant benefits: Streamlined Reporting for Companies: Simplifies the reporting process. Consistent and Improved Data for Investors: Enables more informed investment decisions across multiple jurisdictions. The International Sustainability Standards Board (ISSB) develops and approves sustainability reporting standards for financial markets. It led to the development of the new International Finance Reporting Standards (IFRS), designed to create a common language for financial reporting. The first two standards issued, IFRS S1 and S2, outline the general and climate-related disclosure requirements for companies: IFRS S1: Sets out overall disclosure requirements for sustainability-related financial information. Companies must disclose sustainability risks and opportunities over short, medium, and long-term periods. These disclosures should provide insights into aspects such as cash flows, access to finance, and cost of capital. A key feature of IFRS S1 is its integration with general-purpose financial reports, ensuring that sustainability information is part of overall financial statements. IFRS S2: Complements S1 by detailing specific requirements for Climate-related disclosures. Companies must disclose climate-related risks and opportunities that could influence their prospects, including industry-specific metrics derived from the Sustainability Accounting Standards Board (SASB) standards. Both standards build on and go further than the four pillars (governance, strategy, risk management, and metrics and targets) and 11 recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). The risks to be disclosed include: Transition Risks from shifting to a lower-carbon economy include policy/legal changes, technological advancements, market dynamics, and reputational issues. Physical Risks include acute risks like extreme weather events and chronic risks like rising sea levels. Companies should also highlight opportunities such as resource efficiency, alternative energy sources, innovative products and services, market expansion, and resilience. Aligning Australian standards with ISSB standards Following the ISSB’s announcement in June 2023, the Australian government initiated a consultation on implementing ISSB-aligned requirements in Australia. A proposed roadmap and timeline were released. They initially targeted the largest companies from 1 July 2024 and planned to expand to smaller companies over the next three years. This timeline has been adjusted, and Group 1 reporting is expected to commence on 1 January 2025. On 27 March 2024, Treasury incorporated the recommendations into an Omnibus Bill to adopt Australia’s version of ISSB S1 and S2. This Bill, named the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024, integrates the reporting changes into the Corporations Act (2001) under the financial reporting obligations section (Chapter 2M). The Bill proposes that reporting begins on 1 January 2025 for the first tranche of organisations subject to the new obligations. 2025: Group 1 – Large Entities Entities meeting 2 of the following criteria: $500m+ consolidated revenue $1b+ consolidated gross assets 500+ employees 2026: Group 2 – Medium Entities Entities meeting 2 of the following criteria: $200m+ consolidated revenue $500m+ consolidated gross assets 250+ employees 2027: Group 3 – Small Entities Entities meeting 2 of the following criteria: $50m+ consolidated revenue $25m+ consolidated gross assets 100+ employees The Bill passed the Lower House on 6 June and now sits with the Senate. Then Parliament has until 2 December 2024 to enact these changes into law. If the Bill passes after this date, the start will be deferred to 1 July 2025. It is also important to note that the Bill does not specify the precise reporting requirements. Instead, it outlines the key components required of organisations. The Australian Accounting Standards Board (AASB) defines the specific obligations and are currently in draft form. Organisations that must comply with regulations in other countries must rely on something other than Australian reporting standards to meet their international compliance. They will need to adhere to the regulations in each jurisdiction. While some countries follow the ISSB model, others do not. Currently, over 20 global jurisdictions have committed to adopting the standards, reflecting significant progress. As a rule of thumb, US regulation is lighter, and EU regulation is more stringent. NZ already follows its own climate change reporting and may not opt into ISSB. Taking advantage of the 1 January 2025 extension Although 1 January 2025 has yet to be confirmed as the official start date, the extension offers businesses a valuable opportunity. Many businesses still need to start, and for those that have, the additional six months provide valuable time to
Maximising Impact: How External Consultants Drive Sustainability Initiatives Forward
In today’s business landscape, sustainability has become a critical component of corporate strategy. Increasing pressure from stakeholders – including investors, consumers, and regulatory bodies – is driving companies to integrate Environmental, Social, and Governance (ESG) principles into their operations. However, navigating the complex terrain of sustainability requires expertise and resources that are often not readily available within an organisation. This is where external consultants are pivotal. They support Sustainability Managers in developing and executing effective ESG strategies and sustainability communications. Understanding the Need for External Expertise Sustainability is a multifaceted domain that encompasses environmental conservation, social responsibility, and corporate governance. Sustainability initiatives also often require cross-disciplinary collaboration that spans supply chain management, stakeholder engagement, and regulatory compliance. Crafting a robust ESG strategy demands a deep understanding of these intricacies and the ability to align sustainability goals with broader business objectives. External consultants bring specialised knowledge and experience to the table. They offer fresh perspectives and innovative solutions that internal teams may overlook, and contribute diverse skill sets and cross-industry insights. This enables Sustainability Managers to leverage a broader range of expertise in addressing complex challenges. A seasoned consultant’s breadth of client experience enables them to customise effective solutions, drawing from a toolbox of proven and adaptable strategies, thus reducing risk and optimising results for the organisation. Driving Strategic Alignment Sustainability Managers must ensure sustainability efforts are closely aligned with their organisation’s corporate strategy. That means ESG goals must be integrated seamlessly into business operations to maximise impact and drive long-term value creation. External consultants excel in helping organisations identify strategic priorities, assess risks and opportunities, and develop actionable plans to embed sustainability across all levels of the organisation. They conduct comprehensive audits and gap analyses to identify areas for improvement and recommend objective and data-informed strategies to address them. Whether implementing renewable energy solutions, enhancing diversity and inclusion practices, or optimising waste management processes, external consultants can accelerate progress towards sustainability targets while improving overall business performance. Navigating the Regulatory Landscape The regulatory landscape surrounding sustainability is constantly evolving. New laws and reporting requirements are emerging at national and international levels. Keeping abreast of these changes and ensuring compliance can be daunting for Sustainability Managers, especially in industries subject to stringent environmental and social regulations. External consultants specialising in sustainability regulations can provide invaluable support in interpreting complex legislation, navigating reporting frameworks such as GRI (Global Reporting Initiative) and SASB (Sustainability Accounting Standards Board), and implementing robust governance structures to mitigate compliance risks. They help organisations proactively adapt their ESG strategies to meet evolving standards and stay ahead of regulatory developments. Addressing Resource Constraints and Accelerating Progress Sustainability Managers must commonly deal with resource constraints when tasked with driving ESG initiatives. Limited budgets, competing priorities, and staffing shortages can hinder the effective implementation of sustainability strategies. This may leave managers overwhelmed and unable to achieve desired outcomes. In these cases, external consultants offer a cost-effective solution. Many provide on-demand access to their specialised skills and resources without the overhead costs of hiring additional full-time staff. External consultants can act as an extension of the internal sustainability team, filling gaps in expertise and capacity as needed. Whether conducting in-depth research, analysing data, or managing stakeholder engagements, consultants can alleviate the burden on internal resources. This allows Sustainability Managers to focus on strategic decision-making and priority relationships and initiatives. Consultants experienced in working with diverse clients across industries can quickly adapt to each organisation’s unique needs and challenges. They can provide flexibility for Sustainability Managers operating in dynamic environments where agile responses and innovative solutions are needed to meet rapidly shifting priorities. Moreover, external consultants bring a crucial element of acceleration to the table. With their specialised expertise and focus, consultants can expedite the pace of ESG progress within businesses facing resource constraints. By leveraging their deep understanding of sustainability frameworks, regulations, and best practices, consultants can swiftly identify critical areas for improvement and implement targeted strategies to drive measurable impact. Enhancing Stakeholder Engagement Effective communication is essential for building trust, credibility and ownership around sustainability initiatives. External consultants can play a vital role in helping organisations craft compelling narratives, engage stakeholders, and communicate progress transparently. From developing sustainability reports and ESG disclosures, to designing stakeholder engagement programs and conducting materiality assessments, consultants can help Sustainability Managers articulate their sustainability story in a way that resonates with diverse audiences. Consultants are also often connected to valuable networks within the sustainability ecosystem, and can facilitate partnerships with NGOs, industry associations, and peer organisations. Companies can leverage these networks to amplify their impact, promote best practices, and drive collective action towards shared sustainability goals. Providing a Supportive Network for Sustainability Managers Navigating the complexities of sustainability initiatives within organisations can be a daunting task, particularly for Sustainability Managers who may feel isolated in their efforts. The role often entails balancing competing priorities, managing stakeholder expectations, and driving change across diverse functional areas, all while facing resistance from internal stakeholders already feeling stretched. External consultants serve as more than just advisors; they provide a valuable support network and forum for Sustainability Managers to seek advice, share experiences, and gain perspective from peers facing similar challenges. Peer Learning and Knowledge Sharing: External consultants can connect Sustainability Managers with other professionals in the field to facilitate peer-to-peer learning. Through workshops, roundtable discussions, and networking events, consultants can create a forum for sharing best practices, lessons learned, and innovative solutions to common sustainability challenges. This collaborative environment fosters a sense of camaraderie and solidarity among Sustainability Managers, and empowers them to learn from each other’s experiences and collectively drive progress towards shared sustainability goals. Access to Industry Insights and Trends: Keeping abreast of emerging sustainability trends, regulatory developments, and industry best practices is essential for effective decision-making and strategy development. External consultants offer access to a wealth of industry insights and market intelligence to provide Sustainability Managers with timely information and analysis to inform their initiatives. Staying informed about the latest trends and benchmarks helps Sustainability Managers
Restarting a Stalled Business Impact Assessment (BIA)
B Corp Certification journeys usually span 6 to 18 months, depending on a company’s size, complexity, and existing sustainability practices. It’s also a self-paced process. If you’ve already started the Business Impact Assessment (BIA) process but are not making much progress, or you have completely stalled, it’s understandable that you may feel frustrated and discouraged. The BIA is time-intensive, but it’s important to remember that it’s a crucial step in becoming a Certified B Corp. Small and medium-sized businesses often stall because of a lack of internal skills in ESG, or the team’s available capacity to complete the certification process. Larger complex businesses can stall for a wide variety of reasons, but often this is related to the specific skills needed to deeply understand the BIA and certification process including business improvements. If you have stalled, to help move things along in the assessment stage, you can do the following: First, start with the ‘why’ When you and your team hit a roadblock on the BIA, it’s crucial to identify the underlying reasons to effectively address them. Here are four common hurdles that companies may encounter: 1. Overwhelming responsibility In many cases, the responsibility for driving the BIA falls on one individual. In small businesses, this is often the CEO or owner. In medium-sized firms this can be a variety of job roles or at least a key decision-maker. This individual becomes a bottleneck, overwhelmed by the magnitude of the task. B Corp certification is difficult, as it should be, so having a single project lead for a project that needs a team is often a roadblock. 2. Additional workload For employees assigned to the BIA alongside their regular responsibilities, maintaining momentum can be challenging. Enthusiasm might wane as the project becomes an added burden to their daily workload. 3. Loss of key sponsorship If the internal champion or sponsor advocating for B Corp Certification leaves the company, momentum can also falter. Without their advocacy, the initiative loses steam, impacting the organisation’s commitment to the process. 4. Struggling to meet point thresholds Companies might feel discouraged if they perceive that their progress towards achieving the required 80 points for certification is inadequate. This perceived gap can lead to a sense of disheartenment, further stalling the process. With certification requiring 80 (out of a possible 200) points, most organisations score about 40-50 points on their very first pass of the BIA. This is normal but can quickly dampen enthusiasm and push it into the too-hard basket. Second, apply these strategies You can overcome these hurdles with strategic interventions, such as: 1. Reflect on organisational purpose Reignite discussions around your organisation’s purpose and the value you aim to create. Evaluate strategic support and capacity to ensure alignment with purposeful practices, fostering a renewed commitment to B Corp Certification. Restart that fire! 2. Build an internal project team Distribute the workload by assembling a dedicated project team comprising members from various functions within the organisation. This not only lightens the burden on individual employees but also ensures diverse perspectives are considered. Many hands… 3. Assign BIA sections by function Allocate specific BIA sections to relevant departments such as HR, sales, marketing, operations, and supply chain. Leveraging the expertise of each function ensures accurate information and documentation, streamlining the assessment process. 4. Unlock value with external support In many instances, seeking external support from consultants can be instrumental in overcoming BIA challenges. B Lab-trained consultants offer tailored assistance by diagnosing issues, providing temporary capacity, and maintaining momentum throughout the process. Their expertise can empower your organisation to maximise points, prioritise efforts, and unlock untapped value within the assessment. 5. Shift perspectives: investment vs. cost It’s essential to reframe the mindset around outsourcing support for the B Corp Certification journey. While it may appear as a cost, viewing it as an investment yields long-term benefits. Consultants can help your team focus on what you do best while efficiently navigating the certification process. Finally, move forward with confidence Restarting a stalled BIA for B Corp Certification requires a concerted effort, strategic planning, and a shift in perspective. By addressing common hurdles head-on and leveraging external expertise, you and your team can reignite the journey towards B Corp Certification with renewed determination. Remember, it’s not just a certification—it’s a testament to your commitment to purposeful business practices and creating positive impact.
Elevate Your ESG Performance with a Best-Practice Materiality Assessment
[activecampaign form=20][vc_row][vc_column][vc_column_text] Materiality Assessments (MAT) are crucial for navigating the intricate landscape of sustainability and corporate responsibility. By analysing impact and prioritising critical issues around environmental, social, and governance (ESG), you can enhance your organisation’s reputation, increase stakeholder relations, improve financial performance and create long-term value. MATs also identify and manage risk, as hearing directly from stakeholders delivers nuanced details and often surprises. Making data-based decisions can avoid costly mistakes when relying on unverified assumptions and gut feelings. As the Australian business environment evolves, integrating Materiality Assessments into corporate strategies will be crucial in shaping a more sustainable and prosperous future. Internationally, as ISSB reporting rolls around the world in those countries that opt-in, regulatory reporting standards will require quality data to back decisions, targets and progress claims. The bank of data from a comprehensive Materiality Assessment is also vital when making investment trade-offs. It provides confidence in trade-off decisions based on information, not opinion. The same is true for target setting. You need data-based targets geared to achieve real-world impact. This requires a baseline and trend information. By focusing on what matters most to your stakeholders, you can align your sustainability efforts with your overall strategy to become a sustainable and responsible business practice leader. The key benefits of Materiality Assessments Regulatory compliance and risk mitigation: Australia’s regulatory landscape increasingly emphasises environmental and social responsibility. Conduct a Materiality Assessment to help identify and address potential compliance risks related to changing regulations. Proactively managing ESG issues can help you to mitigate risks, avoid legal challenges, and stay ahead of evolving regulatory requirements. Improved financial performance: Materiality Assessments enable businesses to focus on ESG issues that directly impact financial performance. Organisations can address material risks and opportunities to enhance operational efficiency, reduce costs, and identify new revenue streams associated with sustainability initiatives. This approach aligns financial success with responsible business practices to create a win-win scenario. Strong materiality assessments also demonstrate a commitment to responsible corporate governance and transparency. This fosters trust and confidence among investors, potentially leading to improved access to capital and a higher valuation for the company. Competitive advantage: In a competitive business landscape, standing out is crucial. By integrating sustainability into your core strategies and operations you can gain a competitive advantage. A Materiality Assessment can help you to differentiate your business by clearly understanding the environmental and social factors that matter most to your stakeholders and embed them into your strategy. Enhanced reputation and stakeholder relations: In Australia’s socially conscious business environment, companies that actively manage and address material ESG issues benefit from enhanced reputation and stakeholder relations. Demonstrating a commitment to responsible business practices can build trust with your customers, investors, and the wider community. Employee engagement and retention: Australia’s workforce increasingly values companies that prioritise sustainability and social responsibility. A Materiality Assessment provides insights into the most critical ESG issues for employees. Addressing these concerns can foster a positive work environment, enhance employee satisfaction, and improve retention rates. Best-Practice Governance: High-quality materiality assessments are crucial for boards and company directors and are strongly tied to their fiduciary duty to act in the best interests of the company and its stakeholders. Organisations like the Australian Institute of Company Directors (AICD) are increasingly encouraging directors to work with management to fully identify their material impacts on stakeholders and take appropriate actions. A clear understanding of what is considered ‘material’ allows directors to prioritise attention and resources on the most critical issues and make more informed decisions on matters like risk resource allocation and strategic initiatives. The Importance of a Double Materiality Assessment Many organisations are still conducting their Materiality Assessments within the confines of a boardroom, without engaging external stakeholders. They are only assessing how sustainability issues, such as climate change regulations, resource scarcity, and changing consumer preferences, can affect the company’s financial performance and long-term value. This is known as Financial or ‘Single’ Materiality and is an Outside-in approach. Following the GRI framework enables organisations to undertake Double Materiality. This means also taking an Inside-out approach, known as Impact Materiality, and focuses on the company’s impact on the environment and society. It considers issues like climate change, pollution, resource depletion, human rights, and labour practices. Double materiality is becoming increasingly important for companies facing pressure from investors, regulators, and stakeholders to address sustainability issues. It provides a structured and more comprehensive approach to identify and prioritise the most relevant topics, leading to more informed decision-making and enhanced stakeholder engagement. Using Global Reporting Initiative (GRI) Standards Framework for Materiality Assessments The Global Reporting Initiative (GRI) Standards are a comprehensive and globally recognised set of guidelines designed to assist organisations in reporting their economic, environmental, and social performance. These standards provide a framework for transparent and credible sustainability reporting, and offer a systematic approach to disclose relevant, reliable, and comparable information. The GRI Standards cover various topics, from governance and ethics to environmental impact and human rights. They provide flexibility to tailor your Materiality Assessment to your specific context while ensuring consistency and comparability across diverse industries and sectors. By adhering to the GRI Standards, you’ll be well placed to meet stakeholders’ expectations and contribute to advancing sustainable business practices. This fosters accountability, and drives positive social and environmental impacts. The framework encourages a stakeholder-inclusive process, which enables you to engage with diverse perspectives to determine the relevance and significance of various topics. GRI’s emphasis on transparency and accountability supports you to enhance sustainability reporting by aligning it with globally recognised standards. This method not only aids in strategic decision-making but also fosters a culture of openness and responsiveness, which ultimately contributes to long-term success and resilience in a rapidly evolving business landscape. The Critical Role of Impact Analysis Impact Analysis is a core aspect of any Materiality Assessment and aims to evaluate the positive and negative impacts of ESG issues across various dimensions, including financial performance, brand reputation, regulatory compliance, and other relevant aspects. Stage 1: Engage with stakeholders As part of an Impact Analysis,
IWD: From Inspiration to Action – A Retailer’s Roadmap for Creating Change
Unlock the power to create authentic impact for women in retail! We’re excited to invite you to our upcoming webinar on Thursday, 15 February, where we’ll delve into the imperative for retail businesses to move beyond talk and embrace evidence-based action. Panellists Rosanna Iacono, CEO and Co-Founder, The Growth ActivistsJustine O’Byrne, ESG Manager and Supplier Liaison, CamillaMichele Molnar, Director, Cancer ChicksJeremy Meltzer, CEO & Founder, i=Change Why Attend? Actionable Insights: Gain practical takeaways for immediate implementation.Real Case Studies: Learn from successful examples and inspiring stories.Brand Impact: Position your brand as a force for positive change.Network: Connect with like-minded individuals in the retail space. Date & Time: Thursday, 15 February, 11.00am-11.30amFocus: Shifting from talk-fests to evidence-based action in retail.Topics: Stakeholder inclusion, long/short-term strategies, and inspiring case studies that are changing lives. Be part of this transformative session as we explore strategies that go beyond the ordinary, leaving a lasting impact on women in the retail sector. Reserve Your Spot Now! Please register for replay if unavailable on the day.
Best-Practice Environmental Management Systems: How to use ISO 14001 as a framework for transformation
[activecampaign form=20][vc_row][vc_column][vc_column_text] As the global community grapples with the pressing challenges of climate change, sustainable business practices are no longer optional — they are essential. The Australian government has responded to these challenges with new Climate Change legislation that places greater responsibility on businesses to minimise their environmental impact. The government is also currently developing new legislation to mandate climate-related financial disclosures by businesses. As a result, the imperative for sustainable business practices has never been more pronounced, and Australian businesses are increasingly recognising the urgency of adopting environmentally responsible measures. And whilst the greatest pressure is being felt by large listed entities that will be the first to be affected by mandatory reporting, the small and medium businesses who work with them are also needing to prepare reliable and transparent data around their environmental impacts and improvement pathways. This will increasingly become a condition of being able to work with large organisations. One pivotal strategy is the implementation of an Environmental Management System (EMS), with the ISO 14001 framework emerging as a guiding force. This article explores the critical role of Environmental Management Systems in transforming business operations, and how aspiring and existing B Corps are using EMS’s to become more sustainable and environmentally conscious. What is ISO 14001? ISO 14001 acts as a compass for businesses navigating the complex landscape of environmental management. It was developed by the International Organisation for Standardisation (ISO) to provide a comprehensive framework for organisations to establish, implement, maintain, and continually improve an Environmental Management System. In doing so, ISO 14001 provides a structured approach to ensuring compliance with existing regulations, and proactively identifying and mitigating environmental risks. Through a robust EMS, organisations can not only meet emerging reporting requirements but also enhance their environmental performance and foster a culture of continual improvement. The PDCA (Plan, Do, Check, Act) cycle embedded within ISO 14001 ensures a systematic approach to environmental management. The cycle consists of four clear action points: Plan (establishing objectives) Do (implementing processes) Check (monitoring and measuring) Act (continual improvement) What are the benefits of using the ISO 14001 framework? Environmental Impact: By implementing an EMS, businesses can systematically assess and improve their environmental performance, leading to reduced resource consumption, waste generation and increased energy efficiency. Establishing clear environmental objectives and targets enables proactive measures to prevent pollution, conserve natural resources, and enhance overall sustainability. Operational Efficiency: An EMS’s systematic monitoring and measurement components enable data-driven decision-making, fostering continuous improvement in operational performance. Cost savings: Implementing an Environmental Management System isn’t just about regulatory compliance; it’s also a strategic move that can yield significant cost savings. By optimising resource use, reducing waste, and increasing energy efficiency, businesses can experience tangible financial benefits that contribute to long-term sustainability. Enhanced reputation: An EMS is a visible commitment to environmental responsibility. This commitment goes beyond legal obligations. It resonates with stakeholders who increasingly prioritise environmentally conscious businesses. Using the ISO 14001 framework enhances the company’s reputation and fosters trust. Market access and competitive advantage: An EMS using the ISO 14001 framework can put you on the radar of many domestic and international companies that seek out environmentally responsible business partners. Embedding an EMS provides a competitive advantage, and opens doors to partnerships and collaborations that might otherwise remain closed. Employee engagement and morale: The adoption of an EMS isn’t solely a top-down initiative; it’s an inclusive journey that engages employees at all levels. This process helps to create a workplace culture that values sustainability and fosters a sense of pride and purpose among employees. This boosts morale and attracts and retains talent — particularly from a Gen Z workforce that actively seeks employers with a commitment to corporate social responsibility. What are the challenges of implementing an Environmental Management System (EMS)? While the benefits of an EMS are clear, the journey toward implementation may pose challenges. Resistance to change, the complexity of integrating new processes, and initial resource investments can be daunting. However, overcoming these challenges is integral to realising the long-term advantages. A dedicated implementation team, effective communication, and a commitment to continuous improvement are crucial elements in solving these challenges. What is the role of an EMS for aspiring or existing B Corps? By embracing an EMS, B Corps underscore their pledge to diminish their environmental footprint, champion environmentally conscious innovations, and contribute to a more sustainable and resilient global business landscape. In essence, the incorporation of an EMS is not merely a strategic decision; it serves as a testament to a B Corp’s unwavering commitment to the triple bottom line — people, planet, and profit. For aspiring B Corps, it epitomises a steadfast commitment to sustainable business practices, and ensures that environmental considerations are intricately woven into the fabric of the organisation’s operations. This proactive stance not only aligns with the B Corp ethos of environmental stewardship, but also establishes a robust foundation for enduring sustainability. Having an EMS in place also means additional points are assigned in the Business Impact Assessment (BIA), the framework utilised for verification and B Corp certification. For existing B Corps, the integration of an EMS reinforces their dedication to perpetual improvement and serves as a cornerstone for upholding B Corp certification. An EMS furnishes a systematic framework for identifying, monitoring, and mitigating environmental impacts, thereby fostering transparency and accountability. How can you use EMS data to demonstrate transparency and accountability? Beyond the immediate operational benefits, the data generated by your EMS becomes a powerful tool for transparency and accountability. Consider this data as a foundation for creating a comprehensive Sustainability Impact Report. By analysing and presenting key environmental performance indicators, your business can showcase its commitment to sustainability to stakeholders, clients, and the wider community. Our expert team can guide you through the implementation of an EMS using the ISO 14001 framework, and assist in leveraging the valuable data to create a compelling narrative that demonstrates your environmental stewardship. Ready to transform your business by embedding an EMS? Embarking on the journey to
