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Sectoral

Sectoral Strategies
Companies are under increasing pressure to take responsibility for issues that have traditionally been outside their normal sphere of activity. We see this trend in regulation, such as the European ‘producer responsibility’ legislation, which passes responsibility for end-of-life products, such as packaging, electronic products and vehicles, back to producers. It also arises in the expectations of civil society: for instance, the responsibility of retailers for the impacts of their supply chain in far-off countries. Responding to this, many of the issues that companies now face can be best addressed through co-ordinated action between the companies in an industry sector, and between that industry sector and government, civil society and other related sectors.

At the sector level, trade bodies have a role to play in coordinating the development of a sector sustainability strategy. Reporting on the aims of the strategy and the performance of the sector can help stakeholders recognise successes and understand sectoral challenges and how they can be overcome.

Benefits of sectoral strategies
There are clear benefits in developing sector sustainability strategies:

  setting industry-wide standards for sustainability
  sharing best practice to accelerate sustainability
  building on existing activities within companies
  helping members to avoid the risks accociated with unsustainable activities

Unlocking opportunities to improve competitiveness and reputation.

Benefits of sectoral strategies
The danger with sector responses to sustainability comes from the possibility that a sector will take the ‘lowest common denominator approach’. This means that the sector’s sustainability aspirations are set at a lower level to accommodate more companies within the sector, rather than being more challenging in order to promote best practice within the sector.

“Getting on top of sustainable development is no longer an option for companies - it’s an imperative. Not just to reduce costs, manage risk and stay out of trouble, but to get ahead of the competition. And that makes it an imperative for the trade associations that represent those companies. Given the speed of legislative change, and the ever-rising curve of expectations on the part of consumers and business partners, it would be disastrous for trade associations to get trapped in minimalist, lowest-common denominator reactions.”
Jonathon Porritt, Chairman, Sustainable Development Commission

Practical Responses
Sd3 has found that sector reporting can benefit sector members by helping to:

  analyse tough strategic issues and new ideas in a safer, group context with less chance of exposing brands to perceived risks;
  bring industry partners closer together and galvanise opinions;
  share best practices which contribute to bottom line performance improvements.

The reporting process can also help a sector identify important market information, such as:

  major trends affecting member companies
  key challenges
  actions already taken to address those challenges
  progress made over time
  common issues and targets

Reporting can show how a sector body represents a wide range of companies, it can enhance collective credibility and reach a wider audience. This contributes to the sector being perceived as a coherent and responsible steward for the industry’s future.

The United Nations Environment Programme has published executive summaries of 22 sectoral reports on ‘progress by industry towards sustainable development’. This aims to set the basis for
developing sectoral agendas against which to track future progress.



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