Posted by Pua Mench, Future 500 Manager for Stakeholder Engagement – Asia
The 8th annual CSR Asia Summit kicked off Tuesday, Sept. 14 in Hong Kong, engaging 400 participants from 25 countries on an array of issues centered on “strategic solutions for sustainability.” Across Asia “CS-who?” is a common response when someone begins to raise sustainability issues to a corporate audience, so the sellout crowd here at the summit is an exciting signal of a growing profile for CSR issues.
There is a long way to go. Even in the very westernized and very wealthy Hong Kong, 86% of companies either do not know what CSR is or do not know what to do about it. And as a fellow participant from Singapore shared with me later, that number is about the same in her country.
Mark Dickens, Head of Listing for the Hong Kong Exchanges and Clearing Limited (HKex), suggested that cultural differences are part of the problem. Dickens says that the language used by people in the West to discuss CSR issues with Asia is often perceived as patronizing. He advocated more collaborative efforts as a way forward, for example engaging in conversations and sharing ideas, such as exemplified by the model of the Equator Principles. “A process of inclusion rather than preaching process makes a lot more sense,” said Dickens.
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At a breakout session on the role of business in achieving the Millennium Development Goals (MDGs) in Asia, UNICEF’s regional chief David Girling discussed progress in the region and business opportunities presented by the MDGs. Girling said there is untapped potential for private sector, particularly between now and 2015, as business can leverage government pressure to achieve the MDGs.
He offered a few exciting examples of business capitalizing on the MDGs—illustrating a point echoed throughout the day, “CSR is NOT about philanthropy.” For example, India’s Tata—a frontrunner on many levels, including CSR—has developed a low-cost water purifier targeted at low-income groups and rural markets, in an effort to both save the lives of millions who suffer from waterborne diseases and make a profit. The Vietnam-based International Development Enterprises (IDE) is helping to eradicate disease by providing commercial rural latrines. Girling said that innovation of this nature is a huge growth area.
Toby Ernberg, global corporate accounts manager of Vestergaard Frandsen, followed up on this idea, with examples of his company’s own ability to innovate. Vestergaard Frandsen develops products that save lives, are easy to use and long lasting. They are the leading producer of insecticide treated bed nets, the most effective known device for preventing malaria in the developing world. I was particularly impressed by Vestergaard Frandsen’s “Life Straw” product, which is aptly named as it looks exactly like a big straw, albeit much enhanced. The life straw filters up to 1,000 liters of water, removing most waterborne bacteria and parasites.
What I found particularly inspiring about Vestergaard Frandsen is that they adhere to strict CSR principles—they walk the walk, as was made obvious when Ernberg spoke with pride about the trip the entire staff took to Kenya to test the rural poor for AIDS and malaria and offer counseling, medicine and other helpful materials.
Ernberg’s last comment summed up the session nicely, and offered a powerful insight, “Most companies focus on just 10% of the population when developing products, whereas my company focuses on those 90% that need products.”
Note: For those companies wishing to learn more about the MDGs, and gain insight into their current impact/contribution, the Netherlands-based National Committee for International Cooperation and Sustainable Development has devised an online tool, the “MDG scan.” www.mdgscan.com/
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In the afternoon discussion turned to climate change adaptation, not an entirely uplifting topic but a critical one none-the-less.
A two-pronged conversation emerged, the urgency for action coupled with the confusion among companies over what to do.
Dr. Glen Frommer, Head of Sustainability Department for Hong Kong’s MTR corporation, had this to offer to business, as a way to manage the risks presented by climate change, “As long as companies have a transparent, robust system in place, and trust is in place, they should move forward by taking it one step at a time.” ‘Do so with urgency’ was the silent caveat.
Frommer also encouraged participants to accelerate the realization that climate change will impact rich and poor alike. “What’s happening in Pakistan [the lethal flooding] is going to happen again and again. We are one people with one goal, and not much time to get there.”
I wrapped up the day participating in a discussion on innovative solutions for sustainable value chains. The moderator kicked the discussion off with an insightful remark, “Where the value chain stops is increasingly expanding.” Indeed. We’re seeing this in China right now, where NGOs are increasingly scrutinizing MNCs’ supply chains, and holding them accountable for suppliers to the nth-tier.
For a company like Proctor and Gamble (the first to present), which has 75,000 suppliers, this is no easy task. One way they are tackling the issue is through their “supplier sustainability board,” which launched P&G’s “supplier environmental scorecard” in May 2010. P&G asks suppliers to report on carbon emissions, wastes and other environmental and social indicators. They also encourage suppliers to bring forward their innovations and ideas, which, if successful, are recognized and rewarded.
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