The Need For Sustainability Strategies In Times Of An Economic Downturn
(25 February 2009)

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The 2nd community lecture of the Emirates Environmental Group highlighted the need for greater adherence to corporate social responsibility in order to speed up recovery of the corporate sector from the global credit crisis and recession.

The crisis which started with the failure of sub-prime mortgages in the USA caused a rapid chain reaction among financial institutions around the world showing the vulnerability of investments in a growing virtual economy. As we live in an inter-connected world, the financial crisis impacts on other economies. This resulted in widespread economic reversals and negative impacts on the real economy. The Region has also been affected by the crisis in varying degrees.

It is ironic though that many companies decided to downsize if not totally axe its sustainability units – a move that echoes the level of understanding of many companies of corporate social responsibility.

Mr. Ralph Thurm, a well known sustainability writer and current Director of Sustainability Strategies of Deloitte explained the need to place corporate responsibility and sustainability principles in the core strategy of a company. He also provided an insight of what companies should expect for the next couple of years and what they should do to regain profitability and address current and future challenges. Mr. Thurm gave a nine point guide for companies to assess, re-plan and rebound towards recovery.

He noted the importance for a company to understand the current business climate and define a long term vision while keeping close its core business strategies. Mr. Thurm emphasized the need to prioritize corporate responsibility and sustainability strategies and to use the GRI G3 guidelines for its sustainability reporting.

Mr. Thurm has worked for the Global Reporting Initiative, mainly in the area of business engagement and development. GRI is now viewed as a globally accepted international standard for sustainability reporting. Mr. Thurm also worked for Siemens as head of its Sustainability Council and was advisor to the German Federation of Industries for the World Summit on Sustainable Development in Johannesburg.

Mr. Abdulaziz Al Midfa, EEG Executive Committee Member and Director of Environment and Protected Agency Sharjah said. “The country suffered a great loss letting go of many talented individuals who contributed to the sustainability campaign in the corporate sector. Many companies are missing their priority and reverting to outdated management strategies which caused the climate of collapse in the financial system in the first place. The current situation is pointing us to the right direction and we cannot ignore the signs”.

“It is a big challenge for companies to emerge from the current crisis. It is an even bigger challenge to restore trust and confidence in the private sector in the light of the global economic crisis”, he added.

At the end of the lecture, Mr. Al Midfa thanked Mr. Thurm for his presentation, Emarat Atrium for the venue and Abela Company for the refreshments. A crystal was presented to Mr. Thurm as a token of gratitude of EEG for his support to the community lecture. He also presented certificates of membership to new EEG corporate members who were present at the workshop.

Mr. Al Midfa informed the audience that EEG will be having its 1st CSR workshop entitled “Sustainable Business in the Current Economic Climate” on February 26 from 8:30 AM – 3.30 PM at Sofitel City Centre Hotel, Dubai, featuring Mr. Ralph Thurm as main speaker.

He also reminded the public to join EEG’s Teacher’s Workshop entitled, From Green Education to Green Jobs: Opportunities from a Low-Carbon World on March 30th and 31st for English and Arabic speaking teachers, respectively.

He then announced that EEG will be conducting two community lectures for the Month of March. The first one on the 17th will be a special lecture on climate while the lecture on the 31st will focus on education for sustainable development and its role in a low-carbon world.

Finally Mr. Al Midfa thanked all the people who have regularly attended the lecture series and invited them to take part in other EEG events.

The community lecture is EEG’s free public service on pressing environmental issues and concerns. It is attended by people from different backgrounds and orientations but having a common concern for the environment.