SUSTAINABILITY 2: COMMON PROBLEMS AND SOLUTION ASSOCIATED WITH IT

In my last post, we have been able to ascertain the benefits and ways to engage in sustainability mainly in the extractive industry. I was able to establish GREEN MANUFACTURING, ECO-FRIENDLY products and labels, and GREEN SUPPLY chains as major areas that can bring about SUSTAINABILITY in the industry from the perspective of an organization fully representing the PEOPLE, PLANET, and PROFIT, viz-a-viz sustainable programs for human existence to align economic growth, environmental growth, and social inclusion.

However, it won't be complete to assume all will be well engaging sustainability. Picking out the possible problems is a reflection of an upward review of the practices and their potency. Even though there are great opportunities in implementing sustainability in an organization, one can not deny that there are many challenges in implementing sustainability in the business model. I reiterate, that reflecting on these problems is not to discredit the sustainability model of any business, but to add to the sustainable development of the practice.

A Deep reflection made me come up with possible problems, solutions, and recommended action plan that would be explained in parts, in other series of this write-up. These are the problems and possible solutions that address the business model of any organization in the extractive industry. Even though it's addressed to extractive industries, it can also be related to other industries. The problems are as follows but not limited:

• Meeting Zero Emission Rate

This part is important, especially in manufacturing. This part speaks more about going green in the major operations that makes up the production. Operations like drilling, blasting haulage, beneficiation, and the treatment of tailings are very important. The truth is, to what extent can we prove that we have got zero emission from these operations.

Having an environmental management plan, environmental reclamation plans are part of what can be helpful. Technological advancement can also help in meeting this zero-emission plan. This will be discussed in later write-ups. Making research and development a top priority will be helpful.

• Developing A Long Term Focus Is An Issue

Developing a long-term focus and practicing a model is a difficult move in the face of incessant changes in the financial market, consumer spending, trade agreement, and contradictory policies. When a financial asset increases in value, the company makes more money, which in turn results in maximizing the sustainability model of the organization. In the same vein, consumers are expected to spend more in a growing economy, and when the economy becomes otherwise, the value of their portfolio follows the direction of gain or loss. It should also be noted that purchasing environmentally friendly products comes with an extra cost which does not benefit the economy of scale. In this view, an organization becomes weak facing incessant rise and fall in economic performance. The fluctuation of prices is what creates profit and losses that affect both long-term and short-term plans of an organization, caused by government policies, geopolitical events, and supply and demand.

A proper forecast of the financial market world would make a deep solution. R&D should also be engaged for corrective and preventive management integration.

• Climate Change And Natural Disaster

An unexpected climate change or natural disaster can change green sustainability programs in the pipeline of implementation. Storms for instance could be so severe to the extent of damaging properties that can lead to losses. Green programs are capital intensive, and events like sudden climate change are capable of abruptly bringing to an end or partial disengagement of the practice. No doubt, natural disasters or climatic change can bring about unplanned structures that might engulf losses, and put the organization's reputation under threat and jeopardy.

Engaging in sustainability is the surest way to put natural disasters in check. The disaster management plan should be included in the management plan. Insurance coverage should be checked and properties secured.

• Supply Chain Transparency

A supply chain is a network between a company and its supplier to produce and distribute a specific product to the final buyer. If a network becomes responsible for supplying materials needed for production, and some other sets of networks are responsible for the distribution, it means these networks can make a significant impact on the organization. Therefore, the supply chain becomes transparent when companies are aware of where and how their goods are produced, based on reliable data, and then communicate that knowledge to all stakeholders.

Coming up with this policy is not enough as checking the transparency priority of the stakeholders involved is the problem. However, how transparent companies choose to make their supply chain known is still a question of ethical and unethical practice, and varies differently, it means that as the knowledge of green products grows, so are the impostors. Some organizations are very wise at holding total information on green policy and yet portray themselves as green without the knowledge of other stakeholders. With a different strategy of getting to put a green label on companies with green policies, difficulties still hold the data responsible for labeling green organizations.

Proper monitoring and evaluation of the supplier sustainability plan on quarterly bases are very important to checkmate imposters. The organization can also work with NGOs to play this role.

• Integrating Stakeholders And Education

The world is increasingly facing different environmental challenges, and working together as one entity to mitigate the challenges is becoming important by the day. Bringing all stakeholders together for effective management of the environment is becoming important. Meanwhile, mankind still finds it difficult to unite people that are divided politically, and of diverse interests. Supporting and aligning stakeholders is challenging, as many are divided on the line of tradition, beliefs, experience, and interest. Bringing people together to believe in the course of sustainability is a difficult task.

Continuous education will put an end to the issue. Regular financial reporting, continuous information on events and add incentives to motivate them.

• Government Policy

Having green sustainable development policies in a business model within this industry is an imminent factor, and aligning it with government policy is another. Businesses generally have challenges in aligning governmental policies to the green business model initiative, largely to political uncertainties. For instance, political environments can be unstable due to impending government regulations and policies. This impact on the business is considered an external constraint but can control the company’s sailing toward sustainability.

To be politically informed is not a bad idea. I am not saying the organization should be partisan. But then, it is not a bad idea to be recognized within the political structure. Not partisan!

• Unethical Leadership Practice

Sustainability initiatives in SCG come with a success story, which also needs to consider the type of leadership to maintain long-term progress. Sustainable leadership has a positive impact on employees' organizational commitment and employee job satisfaction. Having leaders that operate with unethical standards, with conflict of interest is a disaster in the making and capable of ruin. Leadership among other issues about business has a logical link to an underperforming organization. No matter how beautiful an initiative is, a picture of not having a proactive solution to impending problems from a leader to drive easy operations amounts to deep losses.

Leaders are the face of all organizations. To have proactive leaders settle the problem and to be trained for leadership positions as individuals or corporations is of necessity.