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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:
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setting
industry-wide standards for sustainability |
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sharing
best practice to accelerate sustainability |
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building
on existing activities within companies |
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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:
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analyse
tough strategic issues and new ideas in a safer, group context
with less chance of exposing brands to perceived risks; |
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bring industry
partners closer together and galvanise opinions; |
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share best
practices which contribute to bottom line performance improvements. |
The reporting process can also help a sector
identify important market information, such as:
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major trends
affecting member companies |
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actions
already taken to address those challenges |
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progress
made over time |
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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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