Chief Executive Officer of Green Sahara Farms, Mr Suleiman Dikwa has called on companies operating in the country to avoid greenwashing in sustainability reporting.
Dikwa made the call at Nairametrics May 2024 Industry Outlook Webinar tagged, ‘Climate Change – Resilient Strategies for Businesses’.
He noted that to avoid pitfalls and prevent greenwashing, companies must clearly understand and disclose their environmental impact.
Greenwashing is the process of conveying a false impression or misleading information about how a company’s products are environmentally sound.
It also involves making an unsubstantiated claim to deceive consumers into believing that a company’s products are environmentally friendly or have a greater positive environmental impact than they do.
Dikwa stated that the prevalent approach of using manufactured capital to solve sustainability issues often aggravates the problem, adding that companies that continue to focus solely on financial metrics are merely addressing symptoms rather than root causes.
He noted that the impact of a company is influenced by its size and affluence, which explains why larger companies and countries contribute disproportionately to the global carbon footprint.
The industrial era
He said that to avoid the mistakes of the industrial era, companies must build a culture that values natural capital.
“This includes integrating community issues and corporate social responsibility (CSR) into their core strategies. Environmental, Social, and Governance (ESG) principles must be tied to tangible actions, such as sustainable city design and resource management.
Urbanization has led to resource overload and income inequality between urban and rural areas. Companies must think outside the box and adapt to new ways of doing business.
There is a grand transition underway, exemplified by Unilever’s strategic corporate objectives, which align CSR with business goals. Unilever’s initiatives in India, for instance, lifted millions out of poverty through sustainable practices,” he said.
Long-term sustainability
Dikwa called on the companies to align their policies with ethical standards and stakeholder interests to avoid greenwashing.
He noted that long-term sustainability requires a focus on future generations, as opposed to short-term profits, adding that this involves conducting material flow analysis and ecological assessments to identify opportunities for sustainable growth.
He said that Nigeria, with its array of climate policies, holds a $12 billion business opportunity in sustainability.
“Companies should integrate CSR into developing sustainable values, as Unilever has done globally. This approach not only fosters ethical business practices but also creates new opportunities for innovation and growth,” he said.