Call to legislate for business sustainability

A multi-pronged analysis of New Zealand businesses and their commitment to sustainability reveals many businesses will commit to sustainability only if government legislates.

Researchers at the University of Waikato have been examining the vulnerability of New Zealand’s global environmental positioning and find that even though the country’s clean, green brand is fragile, committing to sustainability practices long-term is not something businesses will readily take up.

Figures from the Ministry for the Environment show New Zealand's greenhouse gas emissions rose by 25 percent between 1990 and 2012.

Even when businesses recognise they can save money long-term by reducing waste and energy use for example, they don’t action it says Professor Juliet Roper who led the Marsden-funded study.

“With the current drive for economic growth, the present government seems to have taken the ‘s’ word off its agenda. Sustainability has all but disappeared from political discourse and as a consequence the media are no longer using the term as often, removing a significant source of information and debate on the issue.” This in turn takes the pressure off business to adopt sustainability practices, Professor Roper says. 

“It may not please everybody, but we need government regulations to maintain our clean green image. Businesses are increasingly at risk of suffering a legitimacy gap as the country’s lack of environmental protection becomes an issue for consumers internationally.”

The researchers found bigger businesses were more likely to be implementing sustainability policies and practice than small, because they respond to external market pressure, but no matter the sector, Professor Roper says for most businesses, sustainability is still an add on.

“We looked at New Zealand’s vulnerability across multiple sectors – local and national government, businesses, the media, food and beverage industries – including farming and wine – industries that need New Zealand’s positive national reputation to stay intact.”

Businesses have been surveyed four times since 2003, and Associate Professor Eva Collins says this latest iteration reveals that the key drivers to adopting environmental and social sustainability initiatives are reputation and brand, cost reduction and employees. “Perhaps surprisingly there is minimal pressure from activist groups this time round.”

The primary barrier to adoption is cost. “This discrepancy between cost as a driver and cost as a barrier suggests that while short-term cost savings are recognised, long-term investment that may be required to maximise cost reduction still poses a barrier,” says Dr Collins.