How can large companies and the environment coexist?

Integration of SDGs and ESG in Business: Businesses are increasingly recognizing the importance of sustainable development goals (SDGs) and environmental, social, and corporate governance (ESG) in their operations to enhance sustainability strategies and minimize ecological footprints. These frameworks not only improve risk management and attract investment but also contribute to societal goals like poverty eradication and environmental protection 1, 2.

Positive Impact on Business and Society: The adoption of SDGs and ESG frameworks can significantly benefit both businesses and society. Companies that prioritize these sustainable practices are likely to enhance their reputation, foster innovation, and contribute to sustainable economic growth while addressing global challenges such as inequality and environmental degradation 1.

Business Strategy and Operations for Sustainability: To achieve sustainability, businesses must integrate SDGs and ESG into their strategies through materiality assessments and stakeholder engagement. This alignment helps reduce environmental and social impacts while promoting a sustainable future 1.

Collaboration of ESG and SDGs: ESG and SDGs work in tandem to guide companies towards sustainable development. While SDGs outline global challenges, ESG factors measure a company's performance in addressing these issues, encouraging responsible business practices 1.

Value Creation through CSR, ESG, and Sustainability: The balance between CSR, ESG, and sustainability is crucial for creating business value alongside social and environmental value. An imbalance can pose risks to sustainability and the business itself, highlighting the need for responsible value creation 2.

Corporate sustainability principles established in Türkiye: Significant legal developments began in 2020 with the introduction of sustainability principles for publicly traded companies, culminating in the Türkiye Sustainability Reporting Standards (TSRS) established in 2023, which mandates certain companies to report on sustainability starting January 1, 2024. The EU's Corporate Sustainability Reporting Directive and Corporate Sustainability Due Diligence Directive will also affect non-EU companies, including those in Türkiye, requiring compliance by 2028 and 2029 respectively. 1

NRG Energy emphasizes the importance of corporate sustainability: A report by NRG Energy highlights the critical role of corporate sustainability initiatives, identifying key stakeholder groups that influence the sustainability agenda, including investors, governments, NGOs, customers, and employees. The company has also released a guide to assist businesses in developing effective sustainability strategies focused on reducing carbon footprints and engaging stakeholders. 2

Transition plans signal a new era in corporate accountability: Companies are now required to implement mandatory transition plans that will transform corporate climate reporting and accountability, linking emission reduction goals to long-term climate objectives. This shift emphasizes the need for credible explanations of contributions to limiting global warming. 2

VIVOTEK recognized for sustainability efforts: VIVOTEK received two awards at the Taiwan Corporate Sustainability Awards for its commitment to corporate governance, environmental protection, and social responsibility. The company has been publishing sustainability reports for over seven years and is actively involved in initiatives to reduce its carbon footprint. 3

Beyond greenwashing: the need for measurable impact: Many organizations struggle with greenwashing, claiming sustainability without delivering real results. Companies like IKEA and AWS are setting ambitious goals and employing transparency to embed sustainability across their operations, viewing it as an investment that drives innovation and value creation. 1

Companies shift towards scaling sustainable innovation: Businesses are moving away from fragmented sustainability efforts to focus on scaling transformative solutions that align profitability with environmental impact. This marks a significant transition from experimentation to comprehensive execution of sustainable practices. 2

The merging of climate change and biodiversity agendas: Addressing climate change requires a broader understanding of biodiversity. Companies are encouraged to adopt nature-positive strategies that integrate biodiversity considerations into their environmental agendas. 2

Sustainability as a tool for business performance: Firms are encouraged to leverage sustainability to enhance product performance and affordability, viewing it as a means to maximize customer value rather than an end goal. Companies like Schneider Electric and Nestlé exemplify this approach. 2

Corporate commitment to sustainability remains strong despite ESG backlash: Despite criticisms of ESG initiatives, businesses continue to advance their sustainability efforts driven by consumer demand and climate change risks, recognizing sustainability as essential for profitability and competitiveness. 2