Rounding off on environmental wellbeing with this week’s piece, I write to speak to the sudden resurgence of ESG in the business society as commented by a TV host in an interview with the MD/CEO of FITC ESG Sustainability Institute. My take on the recent reawakening in Nigeria is driven by the need to attract foreign investments, considering the ongoing recapitalisation of financial institutions and the government’s campaign for direct investments.
A trend identified by S&P 500, Deloitte Insight, and other business reporting bodies showed that investors now prioritise sustainability and profitability. They look for companies that demonstrate a high compliance rate in terms of ESG and CSR frameworks.
ESG, which stands for Environmental, Social, and Governance, is a set of criteria used to evaluate companies’ operations and policies in relation to their impact on the environment, society, and corporate governance. The urgency of environmental issues such as pollution, deforestation, global warming, climate change, and loss of biodiversity underscores the need for immediate action. It’s crucial that we all prioritise environmental sensitivity and responsibility in our daily lives and business operations. Not only does this contribute to a healthier planet, but it also presents significant financial opportunities for companies that embrace ESG principles.
“The urgency of environmental issues such as pollution, deforestation, global warming, climate change, and loss of biodiversity underscores the need for immediate action.”
These pressing environmental concerns underscore the need for individuals, organisations, and governments to adopt sustainable practices, reduce their ecological footprint, and promote eco-friendly policies. In this context, I present a comparison of two supermarket chains, each with a unique approach to ESG. This comparison is designed to engage you, the reader, in a thought-provoking analysis of their environmental and social responsibility practices and to inspire you to play your part in promoting sustainability.
ValueMart, a leading supermarket chain with a strong focus on competitive prices, high efficiency, one-stop stores, and ample parking spaces, has done so well with significant figures in profitability, customer base/footfall, and brand presence. Despite their financial success, they have faced several environmental and social violations. However, their rapid growth had come at a cost, such as not optimising their stores for energy consumption and greenhouse gas emissions. They are primarily on diesel generators due to poor and erratic power supply. Their livestock farm, which supplies their stores with animal products, also deals in rare animals that are threatened with extinction. Due to the high footfall in their stores, their bathroom taps and faucets are frequently broken, often leaving the place flooded with running water. Their use of pressure pumps also contributed to water wastage in their stores, farms, and distribution centres because of inefficient fixtures, practices, and poor staff training.
ValueMart was named twice as one of the major contributors to landfill emissions because of its supply chain and inventory mismanagement, which always caused excessive food waste. Their stores still package items and groceries with single-use plastics and non-biodegradable materials, contributing to pollution and waste. Some of their suppliers are well known for engaging in questionable environmental practices such as deforestation and habitat destruction. They have just one recycling programme where they sell cartons from shelved products.
GreenGrocer, a smaller but growing supermarket chain prioritising sustainability and social responsibility, implemented several environmental and social initiatives such as energy-efficient lighting and solar-powered appliances. They installed low-flow fixtures and implemented water-saving practices in their stores and distribution centres. The stores implemented efficient inventory management and supply chain practices to minimise food waste as they transitioned to biodegradable and compostable packaging materials for packaging. They introduced reusable grocery bags and started charging for plastic bags at points of sale. GreenGrocer worked and sometimes partnered with suppliers to ensure adherence to sustainable practices through investments, training, and random inspection visits. Their robust recycling programmes included compensating customers for bringing in their single-use plastics, glasses, and cans. Every month, they promote and engage in local environmental initiatives such as cleaning up their locality’s coastal lines and drainages. Due to this, they have received several ecological stewardship badges of honour, as they are always used to create awareness through their wildlife conservation efforts.
Call To Action.
This case study has been purposely adapted for the environmental aspect of ESG to show how specific decisions affect the environment, the people, and even the investors willing to support businesses. I plan to feature other social and corporate governance tenets in their relevant wellness dimensions. Your opinion on which supermarket chain you believe attracted the most investor buy-in in the case study above is highly valued. Your insights will contribute to a more comprehensive evaluation of these supermarket chains.
Please share your thoughts at [email protected]. Olayinka Opaleye is a Wellbeing Specialist and Corporate Wellness Strategist. She can also be reached via Tel: 09091131150 or by clicking on www.linkedin.com/in/olayinkaopaleye.
