Business

Unleashing the potential of nature finance: a pathway to mitigate risks and unlock benefits

Szilvia Szabó — Thu, 16 May 2024 15:59:49 +0000

Unleashing the potential of nature finance: a pathway to mitigate risks and unlock benefits

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Finance

Nature-based Solutions

Nature Positive Economy

Nature Conversation

Business

Economy

Topic

Nature Positive Economy

The loss of wildlife has rapidly accelerated and has reached a staggering 69% decline on average since 1970, according to World Wild Fund's latest Living Planet Report, which we could assume is an issue for environmentalists to deal with.

However, nature provides all kinds of ecosystem services that businesses leverage, directly or indirectly, and according to KPMG, more than half the world’s economic output depends on nature, and its contribution is estimated at more than $125 trillion USD annually.

“Businesses rely on nature for products and suitable operating conditions. If these services are lost, it will affect business profitability and viability,” says Gillian Power, Director of Communications and Marketing at the International Sustainable Finance Centre of Excellence (ISFCOE), also referred to as the Centre.

She adds:

“While the economic value extracted from nature has continued to grow, such as crop production, many of nature’s other contributions to people are in decline, like soil productivity or pollinator abundance.”

The Centre first released its scoping study, ‘Nature and biodiversity finance: Risks and opportunities for Ireland’ in 2022 to examine the biodiversity agenda and highlight nature-related risks and potential impacts on various sectors, such as agriculture, real estate, and manufacturing.

Gillian explains that “the financial sector drives nature loss through the activities it lends to, insures, and invests in and is also exposed to financial risks from short- and long-term nature loss.”

Gillian Power, Director of Communications and Marketing at the International Sustainable Finance Centre of Excellence (ISFCOE)

To put this in perspective, she shares an example of the greenhouse gas emissions induced by Canadian banks' investments and loans to fossil fuel companies being 100 times higher than the operational emissions from the banks themselves.

She underscores that the finance sector, with its pivotal role in directing capital flows, has the power to steer away from detrimental practices and towards more sustainable investments, thereby contributing to net-zero goals.

“Banks have allocated over $2.6 trillion to sectors predominantly accountable for biodiversity loss, with many lacking sufficient processes or policies to monitor or mitigate these impacts and their exposure to nature-related risks. Similarly, globally, publicly funded development banks are estimated to finance approximately $800 billion in harmful activities annually.”

Based on their first study, ISFCOE realised that more detailed research covering the full spectrum of biodiversity-related risks and opportunities for the Irish financial system was needed, which led them to publish the Nature of Finance report in 2023.

The Nature of Finance report is Ireland’s first study on nature-related risks and opportunities to the financial sector, published by Dublin-based International Sustainable Finance Centre of Excellence.

KPMG Sustainable Futures and ISFCOE co-authored the report with support from Skillnet Ireland to establish a baseline in this area, raise awareness of the sector's interactions with and reliance on nature, and ignite deeper investigations.

This first-of-its-kind landmark study found that more than half (58%) of Irish lending goes to economic sectors with a high dependency on biodiversity and nature, while 94% (€85 billion) of lending goes to industries that potentially have a high impact on nature.

It also showed a clear link between bank lending in Ireland and economic sectors highly dependent on ecosystem services and impact nature in areas like managing surface and groundwater, climate regulation, flood and storm protection, erosion control, and pollination.

In addition, it recognises that Ireland hosts one of the largest insurance services sectors in Europe, which could open up new opportunities.

“The insurance industry in Ireland is a key agent of change in the move towards a more sustainable economy and society.”

She adds: “Transitioning to a carbon-neutral economic model requires long-term financing, and insurers are amongst the most significant institutional investors.

Many insurers have started to screen their investments using ESG criteria and increase their sustainable investment commitments.

As a result, they have become significant investors in green, social, and sustainable financial instruments.”

Based on her experience, Gillian believes that insurers and reinsurers increasingly acknowledge the imperative of addressing nature-related risks within their risk management and underwriting frameworks.

“Loss of biodiversity and degradation of nature pose risks for the financial sector, including physical risk due to increased frequency and severity of natural disasters such as floods, droughts, and storms, leading to infrastructure damage and disrupted supply chains.

You will also need to manage market risk, which means consumers are shifting preferences towards environmentally sustainable products and services.

Besides, businesses operating in sectors dependent on natural resources may face increased credit risks due to their vulnerability to environmental shocks and regulatory changes.

Given the scale and complexity of nature-related financial impacts, risks, and opportunities and how underdeveloped this area is, the report proposed a draft Nature Finance Roadmap to position Ireland as a leader on the nature finance agenda.

Nature Finance Roadmap draft proposed in the Nature of Finance report as a next step.

This Roadmap mirrors Ireland's Sustainable Finance Roadmap introduced in 2021 and is structured around its five main pillars: developing talent, improving industry readiness, leveraging digital and data, creating a nature-positive enabling environment, and enhancing communications and engagements on nature and finance risks and opportunities.

It also recommends establishing a Nature Finance Roadmap Delivery Group as an additional Pillar 0, including experts and stakeholders from public, private, and academic institutions.

Gillian further explains that the public sector is currently the more prominent actor in nature-based and biodiversity finance, offering financial instruments that would encourage businesses to advance conservation outcomes through tax breaks and other incentives.

She points out that the State also has a critical role in attracting foreign direct investment as capability and critical mass of expertise emerges.

“Our ongoing research in the nature and biodiversity finance space has presented us with a unique set of opportunities for both private and public sector financial actors and businesses in Ireland.

We are also advancing efforts in the space through ‘Communities of Practice’ discussions and by working on developing an upcoming course for finance professionals on Biodiversity Finance.”

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Building the business case for biodiversity in Ireland

Szilvia Szabó — Thu, 16 May 2024 13:56:42 +0000

Building the business case for biodiversity in Ireland

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The World Economic Forum warned in 2020 that, based on the New Nature Economy Report, approximately $44 trillion of economic value is at moderate or severe risk due to nature loss.

The continued loss of biodiversity and degradation of nature is a looming threat to businesses and communities alike.

“Businesses have a critical role in nature stewardship, but it is challenging to bring their attention to biodiversity and make the link between their operations and impacts visible,” says Lucy Gaffney, Platform Manager at Business for Biodiversity Ireland.

She adds that while some companies are more dependent on and related to nature than others, most have some relationship with it regardless of size or industry.

“A bank, an agribusiness, or a mining company has a completely different relationship with nature.”

According to Lucy, one standard practice is that organisations tend to externalise their impact, which can give the illusion of minimal responsibility and impact.

“It`s the case with Ireland, where you often hear the argument falsely claiming that we are such a small island, so we have no significant impact on biodiversity. In reality, we are very good at using supply chains, leaving the troubles outside the country.”

Lucy Gaffney, Platform Manager at Business for Biodiversity Ireland

But the risks and responsibilities are real, adds Lucy when she explains why businesses should care about this issue more.

She highlights that even though the latest CSRD reporting (Corporate Sustainability Reporting Directive) will not directly apply to most SMEs, they will be forced to deal with sustainability issues as they are part of bigger organisations' supply chains, which will include nature-related issues.

Business for Biodiversity Ireland focuses on creating a safe space and an inspirational community where companies can learn how to connect their operation and strategy with nature.

They are building a multi-sector platform on the pillars of raising awareness, facilitating collaboration, influencing policy, and inspiring action so businesses can mitigate nature-related risks while maximising opportunities and integrating nature into their decision-making.

The organisation aspires to bring together leaders through active participation to share learnings with a learn-as-you-go approach since adopting meaningful biodiversity strategies can be even more complicated than carbon management.

“When you are experimenting with new ideas, there is a fine line between being courageous and being accused of greenwashing. This can lead to greenhushing, a term for consciously concealing sustainability efforts.”

Lucy points out that learning always includes making mistakes, and they try to encourage open and honest discussions that could lead to better solutions.

A critical part of establishing a meaningful biodiversity strategy is identifying the company`s true influence and impact and building a meaningful, long-term plan around that.

To support that process, Business for Biodiversity Ireland created a library of resources available for businesses that would help them better understand how to contribute to a nature positive economy and what the benefits are.

Some guidelines on their website include a Nature Positive Roadmap, a Finance for Biodiversity guide, and a Nature Disclosure tool.

Lucy shares that their role, among others, is to translate and simplify complex concepts so companies can easily see the connection and take action.

“We need to present a distilled version of extensive frameworks, reports, or whitepapers to cut through the noise and make them relevant for decision-makers, providing clear steps they can take.”

Community of Practice sessions provide a safe space for businesses to earn how to connect their operation and strategy with nature. Image: Business for Biodiversity Ireland

Educational activities are also needed to translate biodiversity and make a business case for nature.

“Most people associate biodiversity with pollinators, which is a great first step but not the whole picture. Focusing only on pollinators in communication can actually become misleading since other equally important areas get sidelined because of that.”

She explains that the All-Ireland Pollinator Plan was a very successful campaign and had an overarching positive impact on preserving wildlife in this particular area.

However, Lucy sees this as drifting into dangerous territory by implying that you can tick biodiversity off your list if you are good with pollinators.

“We have so much more that we should discover and protect in Ireland.

Our marine environment is fascinating, and having a natural rainforest that could be restored and expanded along the West Coast is a unique opportunity we could embrace.

Not to mention that an iconic indicator species, the Hen Harrier, also known as the Sky-Dancer, is disappearing from our habitat, but we still have the chance to save it.”

Lucy believes we need to foster more investment-ready biodiversity projects with measurable outputs to help channel attention and finance.

Companies like An Post, Bank of Ireland, or Bus Éireann are already signing up to join Business for Biodiversity Ireland and become more involved with their work through membership, which involves participating in Community of Practice workshops that provide great learning opportunities.

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EU delays key sustainability reporting standards

Bronagh Loughlin — Tue, 05 Mar 2024 11:10:45 +0000

EU delays key sustainability reporting standards

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European Union

Sustainability Reporting

Sustainability

Business

Topic

Sustainability Reporting

The European Union, in a significant policy shift, has postponed the implementation of critical sustainability reporting standards, a move impacting global and EU-based companies.

This delay affects the enforcement of the Corporate Sustainable Reporting Directive (CSRD), originally set to elevate transparency and accountability in environmental and social governance.

The decision underscores the complexities in standardising corporate sustainability disclosures and reflects the challenges in balancing regulatory objectives with business realities.

This move prompts a reevaluation of corporate sustainability strategies, stirring varied responses from stakeholders across the economic and environmental spectrum.

Background on Corporate Sustainability Reporting Directive

The CSRD represents the EU’s ambitious initiative to enhance transparency in corporate sustainability efforts.

It aims to extend the scope of sustainability reporting beyond the current Non-Financial Reporting Directive (NFRD), mandating a comprehensive disclosure framework for companies on their environmental, social, and governance (ESG) activities.

The CSRD’s objective is to standardise sustainability reporting, making it more consistent, comparable, and reliable across the EU, thereby aiding investors, consumers, and other stakeholders in making informed decisions based on the sustainability performance of companies.

This initiative is pivotal in driving corporate accountability in addressing global sustainability challenges.

Rationale Behind the Delay

The rationale behind the EU’s delay in implementing the Corporate Sustainability Reporting Directive (CSRD) is multifaceted. Rapporteur Axel Voss’s statement in the ESG Today article provides insight into this decision.

Voss mentioned that the postponement by two years for sector-specific standards under CSRD aims to give the European Financial Reporting Advisory Group (EFRAG) adequate time to develop quality standards, and for companies to implement them effectively.

He emphasised the need to reduce bureaucracy that companies have faced in recent years, marked by crises ranging from the COVID-19 pandemic to economic inflation.

This perspective highlights the EU’s approach to balancing advancing corporate sustainability while considering the practical challenges businesses face.

Impact on Global and EU Companies

Reuters reports that the delay in implementing CSRD offers companies more time to adjust to new sustainability reporting requirements.

This impacts their strategic planning and resource allocation for meeting these standards, particularly for businesses in specific sectors and those outside the EU.

The postponement, while providing temporary relief, may also lead to prolonged uncertainty, influencing companies’ approaches to sustainability and ESG (Environmental, Social, and Governance) disclosures.

This shift necessitates ongoing vigilance by businesses to stay aligned with evolving regulatory landscapes.

Responses and Criticisms

The EU’s decision to delay the implementation of the CSRD has elicited mixed responses. Some business groups have welcomed this move, viewing the additional time as crucial for adequately preparing for the new reporting requirements.

Conversely, environmental advocates and sustainability experts have expressed concerns, arguing that the delay could hinder progress in corporate accountability for environmental and social impacts.

This divergence in opinions underscores the complex interplay between advancing sustainability goals and addressing the practical challenges faced by businesses in complying with evolving regulatory standards.

Future Implications and Conclusion

The postponement of the CSRD by the EU could have far-reaching implications for the future of corporate sustainability.

While it provides companies with more time to prepare, this delay may also slow the momentum towards enhanced transparency and accountability in environmental and social governance.

This decision sets a precedent for the balance between regulatory aspirations and practical business capabilities, possibly influencing future policies and corporate strategies.

On the one hand, while this move may slow the progress towards greater corporate transparency in environmental and social governance, on the other, it offers an invaluable opportunity for organisations to proactively prepare for the upcoming standards.

This additional time allows companies to refine their sustainability practices, potentially avoiding the rush and potential fines associated with non-compliance.

It’s a strategic period for businesses to align their operations with future requirements, turning the delay into a preparatory advantage for long-term sustainability goals.

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Sharing joy with delicious and sustainable treats

Szilvia Szabó — Mon, 04 Mar 2024 15:07:11 +0000

Sharing joy with delicious and sustainable treats

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Sustainability

Business

Topic

Sustainable Food

Bringing happiness with a little treat is the headline of Dublin-based Rua Food, which was born from a desire to bring healthy, wholesome food to a world too busy to cook.

Founder Alice Tevlin created a range of all-natural, gluten-free and mostly plant-based delicious snacks to supply cafes and businesses in addition to home delivery.

What sets these treats apart from others is not only the taste and healthy ingredients but also the sustainability elements of how they are made and distributed.

Alice left a job in in banking in 2014 to do the Ballymaloe Cookery School 12-week Certificate Course that covers a wide range of world cuisines and techniques and turned out to be a life-changing experience for her.

After travelling and living in Australia for a while, she returned to Dublin in 2018 with the intention of working for herself as a transition period, not anticipating that she would still be at it five years later.

Alice Tevlin, Founder of Rua Food

Alice says: “Rua started as a freelance catering gig while I figured out my next step. I was catering small events, making salads for a few Cafés and making meals for friends and older people in my area.

Then, during COVID lockdown, everything changed. Cafés in my area needed treats, and I was very keen to make them as accessible as possible, so I began making cookies and other treats without gluten or dairy for people to enjoy with their coffee on their allotted daily walks.”

The business went from strength to strength, and winning with their Golden Toasted Nutty Granola at Blas na hÉireann or Irish Food Awards was a moment to celebrate. Earning this recognition allowed Rua to use a well-recognised sticker on their packaging, which was a significant push to establish their presence on the market.

Alice created a range of all-natural, gluten-free and mostly plant-based delicious snacks. Image: Rua Food

Giving birth in 2023 brought her attention to the overwhelming challenges of managing every aspect of being a new mum and trying to breastfeed on top of everything else.

While Alice loves all the snacks they produce, she is proud that she could design lactation cookies to help support breastfeeding mums, using specific ingredients traditionally considered to increase milk flow, such as oats, brewer’s yeast, and linseed.

Becoming a mum also made her realise how much she appreciated the team running Rua. “One of my biggest achievements is creating an amazing team that cares about the business and goes the extra mile for Rua, especially when I was home with my baby.”

Another area that Alice feels she proactively wants to bring change is sustainability.

“When I created the Hazelnut and chocolate Truffle Bites from the waste of our Hazelnut Brownie, it was a step to mitigate food waste, but it was also a financial step. If you are throwing away food, you are throwing away money – profits! It is a no-brainer.”

“Sustainability is at the core of everything we create in Rua. Sometimes, it feels like you’re fighting a losing battle with costs and industry norms, but we continue striving for the best outcome for us and future generations.”

She emphasises that she never had to think twice about sustainability, saying that it is simply a part of business and a part of life.

“Being more sustainable means keeping costs down, minimising waste, and not wasting precious resources like time and energy. As a food producer, it is so important to put sustainability at the forefront of any conversation.

Between increased prices, climate anxiety, and fear for the future, any choices we can make now will not be in vain.”

However, according to Alice, the barriers to adopting sustainability include the need for more resources, more expensive compostable options for packaging, or simply taking the time to research.

Another challenge comes with supplying their food for retail, where managing packaging is a real hassle to comply with regulations and stay on the sustainability side. Right now, the basic solution is to use recyclable packaging.

"If you think about it from the retail point of view, the breakthrough would come if they considered being a sustainable business just as much as being health- and safety-compliant. ”

Working with wholesale customers, they could adopt a reusable system while compostable packaging is used with home delivery.

Referring to their sustainability commitments, she adds that they follow a zero-waste ethos to ensure that not an iota of food gets thrown away, which even influences designing products.

“I made the call to change the shape of our Tracker Bars to Tracker Balls to eliminate any potential waste when cutting the bars into rectangles.”

Besides the production, Alice also has to face managing the business.

The support from the Dublin Local Enterprise Office (LEO) immensely helped her overcome challenges by sharing advice and options for thinking about business issues, namely Cathy McPadden from the LEO, who has helped enormously in the past 12 months.

Alice Tevlin is passionate to create treats with healthy ingredients but also to add sustainability elements of how they are made and distributed. Image: Rua Food

“Receiving the Business Expansion Grant also helped with investing in machinery to speed up our processes alongside participating in the Green for Business program that pointed out areas to become more sustainable.

Also, once you are connected with the LEO, you become part of that community and embrace opportunities for extra exposure and networking, which is also very important.”

The plan for Rua is to continue to grow and spread out further across Ireland and beyond to bring this unique line of products to more people.

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Companies going quiet about their climate efforts is becoming a massive global trend

Szilvia Szabó — Fri, 19 Jan 2024 09:13:09 +0000

Companies going quiet about their climate efforts is becoming a massive global trend

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Climate Communication

Climate Action

Climate Change

Business

Topic

Climate Communication

In recent years, business climate communication has become a spotlight issue to fight off greenwashing, and watchdogs are regularly fining companies for misleading marketing and advertising activities, as has happened lately to Shell with one of their public campaigns on green energy.

Besides, new regulations are shaping the landscape as the EU Parliament and Council new rules are coming to ban generic environmental claims and provide consumers with better product information from 2026.

All these changes seem to put too much pressure on companies, making them afraid to go public about their climate initiatives or plans.

According to the latest Net Zero Report released in January by South Pole, a global organisation supporting companies to achieve net zero emissions, the majority of surveyed companies are intentionally keeping quiet, decreasing their climate communications, otherwise known as 'greenhushing', despite increasing investment in carbon management and climate action.

Data collected from climate-conscious companies revealed that 70 per cent of them admit to 'greenhushing', which is present across nearly every major sector worldwide, from fashion to tech, consumer goods, oil and even environmental services.

The report explored why companies choose not to publicise their climate strategies or goals and deliberately decrease or cease external communications around them by surveying over 1,400 companies with dedicated sustainability leads across 12 countries and 14 sectors.

Reflecting on the result, John Davis, Interim CEO of South Pole, said:

“It reveals that regulation, industry requirements on reporting on climate goals and heightened scrutiny from various stakeholders are the core reasons for companies keeping quiet about their climate goals and progress.”

Scaling down communication happens despite most surveyed respondents (81 per cent) claiming to be on track to meet their net zero goals and recognise the value of communicating climate action.

John Davis, Interim CEO of South Pole. Image source: South Pole

Consumer goods companies marketing food, beverages, and household goods were more likely to be `greenhushing` (86 per cent), more than the oil and gas industry (72 per cent).

Controversially, 93 per cent of surveyed companies see communications as crucial to commercial success, and nearly half (46 per cent) say that customer demand is the number one reason to pursue net zero targets for the third year in a row.

Yet, they are holding back on connecting climate action and communication.

Besides customers, the desire to have better oversight of supply chain risks and to future-proof operations are the leading drivers for pledging net zero goals, surpassing the need to stay ahead of the competition.

Drivers to set net zero company targets over the years. Image source: Net Zero Report 2024, South Pole

Nearly half (44 per cent) of surveyed businesses claimed that due to lack of clarity and changing regulations, they find it more difficult than before to communicate about their net zero plans and actions despite the vast majority (81 per cent) of companies saying it is good for their bottom line.

The study showed that 2025 to 2030 is the most common net zero target year range, which raises some questions about delivering meaningful results.

The Net Zero Report found that over three quarters (76 per cent) of researched companies claim to be increasing their budgets to meet their net zero targets, and the vast majority say they feel like they are “on track" to meeting targets.

“Our latest research shows that too many companies in the surveyed cohort are working towards highly optimistic, possibly even unrealistic, net zero target dates of by 2030 or earlier.

The coming years will either bring unprecedented industry transformations or deep disappointments,”

says Franziska Sinner, Senior Director of Climate Strategies at South Pole.

She adds:

"What remains crystal clear today, however, is that corporate leaders must step up and speak up if we are to make a dent in this terrifying climate challenge.”

According to another research by Net Zero Tracker, the number of company net zero targets has risen by more than 40 per cent in 16 months from 2022 to 2023 based on numbers from assessing 1000 companies' net zero targets from the Forbes Global 2000 list of the world's largest companies.

However, only 4 per cent of these commitments meet the revised ‘Starting Line criteria’ set out in 2022 by the UN Race to Zero campaign, aiming to have clear and specific measurements and actions in place for carbon offsetting, reduction, and reporting progress.

This resonates with results based on analysing South Pole’s proprietary database of 77,000 listed companies, showing that only 8 per cent have set a net zero target, with 92 per cent having no targets or progress.

The data collected by South Pole in the Net Zero Report for the fourth year strongly suggests that most companies struggle to find the confidence to go public about their carbon management mainly because of their fear of scrutiny by stakeholders, regulatory requirements, and lack of guidance on best practices.

The lack of communication can jeopardise progress on climate action in the business community since there will be no best practices to follow or lessons to learn from.

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European business decarbonisation platform company attracts $27M funding to scale

Climate Journal reporting — Fri, 22 Sep 2023 12:54:02 +0000

European business decarbonisation platform company attracts $27M funding to scale

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Greentech company Plan A, a corporate carbon accounting, decarbonisation, and ESG reporting software provider, raised $27M in a round led by Lightspeed Venture Partners due to its significant growth and innovative carbon data processing technology.

Known for leading the way in corporate carbon management, the enterprise already had prominent clients such as BMW, Deutsche Bank, Visa, trivago, and KFC, among others, using their digital sustainability platform to reduce and offset carbon emissions.

“The strength and flexibility of their platform truly has the capabilities to drive change and impact within organisations from across any sector and on a global scale, and to guide organisations both small and large on a holistic decarbonisation journey,”

said Julie Kainz, Partner at Lightspeed Venture Partners regarding their choice to back Plan A growth plans.

Lubomila Jordanova, CEO of Plan A, (left) and Julie Kainz, Partner at Lightspeed Venture Partners (right). Image: Plan A

Businesses are yet to meet the legally binding target of net zero greenhouse (GHG) gas emissions by 2050 set in The European Climate Law, with the recent addition of reaching at least a 55% reduction by 2030 compared to levels in 1990.

The fresh capital will further propel Plan A expansion in European markets, primarily focusing on France, the UK, and Scandinavian countries, while they aim to double their headcount and advance the platform’s features.

Lubomila Jordanova, CEO of Plan A adds:

“It's our mission at Plan A to provide made-to-measure software solutions and services to empower large and complex companies to decarbonise their operations and value chains and respond to the regulatory shift.”

This investment will enable the company to further its mission to empower many more businesses to self-manage their net-zero journey using its end-to-end SaaS platform.

One of the unique characteristics of this fully automated digital solution is that it operates based on integrating internationally recognised methodologies and standards, such as the Greenhouse Gas Protocol and the Science Based Targets initiative (SBTi), making it a credible and reliable tool for companies to navigate sustainability reporting and implementations.

The Berlin, Paris, and London-based company was founded in 2017 to develop an end-to-end software solution from data collection over emissions calculation, target setting, and decarbonisation planning to non-financial reporting in one central hub.

Jordanova states that “climate change and the associated impacts pose an existential risk to businesses,” and with Plan A, they strive to empower large and complex companies to decarbonise their operations and value chains and respond to changes in regulations.

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How to get people involved with sustainability and keep them engaged?

Anonymous — Thu, 07 Sep 2023 12:40:58 +0000

How to get people involved with sustainability and keep them engaged?

Tags

Sustainability

Business

communication

Topic

Sustainability Communication

Expert opinion by Joanna Mulkeen, Founder of One Step Closer

In the past years, more and more companies put efforts into managing their carbon emission and pledging to become net-zero while introducing other sustainability practices.

However, most companies and organisations have no measures of how successful their sustainability communications are in reaching and influencing their audience, and there are often no set KPIs for active audience engagement.

But this is about to change. New regulations, like the Corporate Sustainability Reporting Directive (CSRD), will require companies and organisations to map and report on their engagement efforts starting in 2024.

People trust companies and organisations more than governments, media and even NGOs to bring changes to sustainability, according to Edelman’s Trust Barometer 2023 report. It also found that climate change concerns people more than nuclear war, inflation and food shortages.

There is a growing demand amongst consumers and employees alike to align with organisations and companies and look at them as ‘partners for good’.

I created One Step Closer, a unique Sustainability Engagement Engine, to allow people to engage with organisations’ sustainability actions in an easy and fun way, immediately seeing their actions’ impact.

I work with organisations to help them extract simple sustainability stories linked to bigger commitments and design engagement campaigns that allow their audience to vote directly and influence these actions while we communicate the results and the proven impacts.

Joanna Mulkeen, Founder of One Step Closer

However, citizen engagement is a hard nut to crack.

One of these challenges is that consumers want organisations to take sustainability actions but often don't believe what they say.

Then there is the complexity of sustainability challenges and strategies that can make it hard to create simple messages and translate them into campaigns.

Also, some organisations are shying away from publicly discussing their sustainability agenda as they fear being accused of greenwashing and any potential backlash.

Many organisations fear that simple sustainability messages will convey an insincere sustainability commitment.

Although, we have found just the opposite to be the case, as these straightforward campaigns can help anchor complex messages in a tangible and personally relevant way.

Also, organisations are holding back because not all aspects of their operations might be perfectly sustainable.

Sustainability mastery is impressive and sometimes inspirational, but as stories, they are often presented as passive pieces of content.

Journeys, however, are an invitation to explore together and perfectly placed to tell stories about intentions, failures, commitments, sacrifice and success – celebrating milestones along the way.

Probably one of the most used tools where complexity can become a barrier in this space is sustainability reports. But honestly, who wants to read a report? Why not let your audience become a part of it?

A perfect sustainability track record absolutely should not be a starting point.

If you have already done everything, how could people get involved?

It is human nature to ‘connect’ with stories that are not finished rather than the ones that are.

We have developed the ENGAGE Model for the One Step Closer platform with a focus on community actions around sustainability:

E – EMPOWER citizens by asking them to vote and influence positive outcomes

N – in a NEUTRAL space away from marketing fluff

G – make sure it’s GREGARIOUS so people can share

A – with ACTION-BASED activity that makes a difference

G – prove it’s GENUINE by showing the impact

E – ensure that it is EMPIRICAL so you can learn every time you do anything

I believe following this logic can help take small but meaningful steps towards common goals, and I have seen them deliver results beyond expectations.

One of our campaigns for Trinity College Dublin (TCD) in Ireland aimed to raise awareness about the importance of biodiversity and ‘nature spaces’ in our cities.

We asked students, staff, and the general public to vote if TCS should rewild the iconic 400-year-old lawns on their campus in the heart of Dublin.

The campaign attracted nearly 14,000 votes, with 90 per cent in favour of choosing wildflowers. It also generated over 50 pieces of media coverage nationally and abroad.

This simple yet powerful project gave participating citizens a sense of personal ownership of these wildflower lawns and a clear emotional connection to the sustainability challenges around biodiversity.

Citizen engagement campaign at Trinity College Dublin. Image: One Step Closer

We need to see examples of actions that work, and this is where the role of media is vital and how they report on sustainability challenges, inspiring people to regain faith that efforts and shifts in how we live are worthwhile.

Headline image: Getty images

This article is an extract from content originally published in the Circular Economy in Action special edition of the Profit with Purpose Magazine - you can read the full article and other features in the magazine.

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How to keep the spark alive while changing the World?

Bronagh Loughlin — Fri, 03 Mar 2023 12:41:22 +0000

How to keep the spark alive while changing the World?

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Business leaders do not exactly have a 9 to 5 schedule, and coupling it with the pressure to make a positive impact can be extremely stressful.

But being a purpose-driven leader is more than simply selling a product or your brand to consumers.

According to research from Steve Bagi on Interdisciplinary Perspectives on International Leadership, sometimes burnout among leaders results from their expectations to be innovative and enthusiastic constantly about encouraging their organisation to continue to move forward.

A big challenge for leaders in the impact space is maintaining a healthy lifestyle while working for a mission or towards a cause they deeply care about.

Symptoms of burnout include feeling overwhelmed and unsatisfied about achievements, stressed out, mentally and physically exhausted.

Those working in the climate action and social impact arena may actually be more prone to these feelings and states of mind.

Eco-anxiety

Besides business-related issues, there is an increasing trend of experiencing eco-anxiety.

This emotional status is defined as the fear of environmental damage or ecological disaster, linked to extreme worry about current and future harm to nature caused by human activity and climate change.

Researchers use the term “eco-anxiety” to describe chronic or severe anxiety related to humans’ relationship with the environment.

Eco-anxiety can increase stress and lead to burnout. Image: Getty Images

This type of anxiety can be derived from the awareness of a rising risk of extreme weather events, losses of livelihood or housing, fear for future generations, and feelings of helplessness.

The increasing number of environmental crisis issues are not only frustrating, frightening or shocking to some people but can become the source of constant anxiety.

They can also feel guilty or anxious about the impact of their generation on the environment. For the most part, it is said to affect young people.

However, it is also likely to impact those working in sustainability, regardless of their age bracket. These emotions can result in leaders feeling increased stress, overworking to meet objectives and then experiencing burnout to a point where they find it hard to get back up again.

Keep going

There are some simple, practical ways how to keep the spark alive. The key is to find what works for you and be conscious about keeping it on your agenda.

The emotional attachment to what you are working on can make you more involved and prioritise the big mission over your own self-care.

Disconnecting from work and taking part in non-work-related social activities can be more difficult for impact-driven entrepreneurs and employees.

Establishing a work zone area can help if you do not have an office or work remotely. In addition, when you finish for the day and close that door or shut down the work computer, it is best to leave the work in that room or space.

A great way to escape a vicious circle of being constantly at work is to schedule time for yourself.

Taking time off is just as important as working. Image: Zach Betten, Unsplash

Taking time off is arguably just as crucial as working. It enables you to recharge your batteries so you can come back the next day pumped full of energy with renewed enthusiasm.

Being available 24 hours, 7 days of the week is not sustainable regardless of your reason for burning the candle on both ends.

Setting boundaries and knowing when to say ‘no’ is essential in avoiding burning out. Committing to more than we can handle is increasingly common as we as humans want to live up to people’s expectations of us.

Another thing that may help you when it comes to leaving work behind is if you have a hobby that takes your mind off from your to do list.

Be empathetic to others and yourself

Having a mission is not always enough to keep up motivation, although creating a safe and supportive environment will see you, your team and the organisation thrive.

According to a study from 2020 carried out by Kronos HR specialist company, employees are calling out for empathetic leadership to combat burnout. This is likely to still ring true, even in the post-COVID-19 working environment.

To stop putting so much pressure on yourself and understand that you are a human being could be a significant step toward lowering the risk of burnout.

It is okay not to be perfect and not get every single task done perfectly.

More research has found perfectionism and burnout often go hand in hand. So trying not to sweat the small things can prove to be valuable.

Being conscious and addressing burnout will help you find coping strategies, and even if you find yourself in this state, you may come back a stronger leader without considering it a defeat.

This mentality applies to managing your team, so dealing with burnout can become part of your culture and help you achieve your goals while working towards your mission together.

Headline image: Getty Image

This content is a piece of an article originally published in the "Make change happen" issue of Profit with Purpose Magazine.

The Summer 2022 edition of the magazine is focusing on making cities sustainable and inclusive, and is available here >>>

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Europe's largest business event for sustainable transformation is back for its third edition

Business Spirit News reporting — Tue, 24 Jan 2023 14:36:05 +0000

Europe's largest business event for sustainable transformation is back for its third edition

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Sustainability solution providers, users and investors are coming together for networking and knowledge exchange.

The IMPACT FESTIVAL offers targeted networking and knowledge exchange for start-ups, investors and companies to accelerate sustainability innovation on 13-14 September 2023 in Germany.

For the third annual event, organisers aim to highlight innovative solutions provided by start-ups and scale-ups that can contribute to sustainable development and economic growth.

“We offer companies the opportunity to be at the forefront of current developments, learn about the latest innovations, and take away concrete starting points for their own business,"

said Co-Lead, Linda Köpper about the focus of this year’s event.

Attendees will have the chance to visit an extensive exhibition area and connect with innovators while learning about specific application possibilities.

Linda Köpper, Co-Lead of IMPACT FESTIVAL, the biggest B2B sustainability event in Europe.

Talks, discussions and workshops will take place, including experts, visionary innovators and practitioners from related fields such as sustainable finance, circular economy, clean tech and more.

Maria Steinbrenner, the other Co-Lead of the event, highlighted:

“This year, more than ever, we want to focus on companies that are looking for concrete solutions and best practices for their challenges or want to network and position themselves in the field of sustainable transformation.”

IMPACT FESTIVAL provides opportunities for enterprises to directly promote their sustainable products and services to potential clients, users and investors to advance their business ambitions further.

IMPACT AWARD winners in 2022 received recognition and supports. Image: IMPACT FESTIVAL

The IMPACT AWARD will be awarded to European start-ups addressing the most pressing societal challenges through sustainable technology and innovation.

This two-day annual event first took place in September 2021 and has grown from strength to strength ever since developing an extensive all-year-round supporting program, including IMPACT WEEK, webinars, podcasts and an online magazine.

The registration of interest to purchase tickets is available on the event`s website.

IMPACT FESTIVAL is a project of the neosfer GmbH, the early-stage investor and innovation unit of Commerzbank Group, aiming to accelerate sustainable transformation.

Its purpose is to investigate future technologies relevant to business and society while promoting and developing sustainable digital solutions.

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January 2023

Innovation and sustainability trends showcased in Dublin

Business Spirit News reporting — Mon, 17 Oct 2022 09:50:05 +0000

Innovation and sustainability trends showcased in Dublin

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Event to connect Innovation, Sustainability and Technology in Ireland.

The Furthr Festival will present game-changing innovations, future technology, and business opportunities in sustainability on Friday, 21st October, at the Convention Centre in Dublin, Ireland.

The event, previously known as Futurescope, comes under a new name and branding but with the same passion for bringing together business leaders for a day of inspiration, learning and networking.

Attendees can explore topics across five main stages focusing on Insights, Innovation, Sustainability, Transformation and Investment with more than 100 high-profile international and Irish speakers.

Keynote speeches include topics like Guardians of the Future, presented by Sophie Howe, Future Generations Commissioner for Wales and Think global: Move quickly, delivered by Michael Culligan, CEO at Furthr.

The event is best suited for innovators and innovation seekers looking for trends, insights, ideas and connections to take their businesses to the next level.

One of the highlighted sessions will be the One2Whatch startup competition, where pre-selected innovators will pitch for the ten thousand Euro cash prize and become crowned winners as the most promising startup.

With an expected attendee number of around 1600, this is the ultimate meeting point for business leaders striving to be at the forefront of change, unlocking market opportunities.

Additional highlights of the conference include the Future Tech Arcade, The Innovation Exchange, panel rooms, an exhibition area and plenty of networking opportunities during lunch and the after-event drink reception.

One2Whatch startup competition at Furthr Festival with 10K prize money. Image: Furthr

A particular emphasis will be on facilitating collaboration opportunities between diverse stakeholders such as startups and scaleups, investors and academia.

Tickets are available on the event’s webpage.

Furthr, formerly Dublin Business Innovation Centre, has accelerated funds and connections for Irish startups since 1988, empowering entrepreneurs to advance their ambitions.

Over the years, Furthr has helped Ireland’s innovative startup founders to raise a total of €500+ million.

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October 2022