Those closest to the problem are also closest to finding the solution

by Lionesses of Africa Operations Department

“….the difference we have made to the lives of others…”, to which Madiba could have added “…and to those that are yet to come.”

What a mess so many of us and the generations before have made of this world. This mess was, of course, born of the great industrial revolutions of the 18th centuries in the UK and Europe and continued and indeed increased as we moved into the ‘must have’ and ‘in excess’ eras of the current day, but the impact of all this is now felt most in the ‘Global South’, places such as Africa, which for so long have been ‘at one’ with the land and Mother Nature.

There is some sympathy with the argument from the ‘Global South’ that the West has had its industrial revolution, now ‘we need one’, however the globe is simply too small and sadly we are all in the same boat, like it or not. So how do we not only find solutions, but also drive the solutions that the globe so desperately needs?

Melanie in a recent Good Morning Lionesses blog stated clearly: “As we always say, those closest to the problem are also closest to finding the solution - and we have so many women entrepreneurs in our Lionesses community who are doing just that, creating green businesses with impact.” (here). 

Although we see the impact and the sustainability of so many Lioness businesses led by truly inspirational leaders such as Dr Gladys, Jane or Samantha to name just a few out of the many thousands we could have picked, this is often not obvious - so, how does one get an ESG sticker for one’s products? How does one differentiate between the way we impact the Planet and how the Planet impacts us, or even for that case, with our own companies.

This is actually a serious question. As Bloomberg reported recently (here): “MSCI, the largest ESG rating company, doesn’t even try to measure the impact of a corporation on the world. It’s all about whether the world might mess with the bottom line.” Does this make a difference, well it seems so as “Bloomberg Intelligence estimates that 60% of all the money retail investors have plowed into sustainable or ESG funds globally has gone into ones built on MSCI’s ratings.”, here. That’s billions if not trillions of US$, going into stocks based upon ratings that appear the opposite of what we as globe need. Bloomberg: “For example: ‘Water Stress’ measures whether the local community has enough water for the company, not whether the company is stressing the local water supply.”

Anyone watching the levels of their country’s reservoirs dropping whilst yet more industry or housing estates move into their area, can agree. The problem being that this has made many of our companies lazy at the expense not only of the Planet, but also those who have tried as best they can to drive their companies with the Planet truly in mind, through the 3P’s, People, Planet, Profit. For those companies who are sitting proud, high up in the MSCI ratings chart (take a bow Philip Morris or McDonalds) and even for those that thought they had covered all the bases by creating an ESG department, but hadn’t given it any powers, the EU is closing its net.

On 5 January 2023, the EU Corporate Sustainability Reporting Directive (CSRD)1 entered into force. This not only tightens proper ESG reporting requirements (no hiding behind a MSCI rating), it increases the number of companies within its scope, plus - and here is the wake up call for many: “While companies will not be subject to specific reporting requirements under the CSRD until at least 2024, the significant impact on ESG reporting for companies means that companies should identify the extent to which they will be subject to CSRD reporting well in advance of reporting requirements entering into effect. If they are subject to the CSRD, such companies will need to significantly build the processes, procedures and add internal controls, and develop the resources to manage their obligations.” Note: ‘should identify…’.

The regulations of this world are changing. Greenwashing and any of the other ‘washings’ are slowly being squeezed out by the EU, and if you think that this will not impact companies elsewhere in the world, think again. The EU’s Article 40a brings in ‘Global Groups With a Significant Presence in the EU’. Oh and create a dirty subsidiary outside of the EU? Articles 19a or 29a will get you.

Global sustainability, and corporate sustainability, is an ongoing process rather than an achievement, it is a marathon not a sprint. Something we think those that are being impacted by the new EU regulations will come to realize, and fast.

With that ongoing process comes a requirement for continuous measurement, a reflection on how sustainability is being reached, what works, what does not and if it can be improved. Why? Because according to Daniele Giovannucci and Freek Jan Koekoek in their paper -  ‘The state of sustainable coffee: a study of twelve major markets’: “…in order to achieve sustainability long-term environmental, social, and economic needs must be met in an integrated manner without compromising the ability of future generations to meet their own needs…”(here). ‘Long-term needs’, ‘integrated’ and ‘without compromising’ being the important factors. AND then communicating this information in a well documented factual format.

As Kate Raworth in her article for The Lancet (here) entitled: ‘A Doughnut for the Anthropocene: humanity's compass in the 21st century’, wrote “…wellbeing depends on enabling every person to lead a life of dignity and opportunity, while safeguarding the integrity of Earth's life-supporting systems.”

Our membership have done the hard work (although to be fair much of this is second nature to Lionesses), they are now measuring it, starting to shout about it and certainly celebrating it, thereby confirming Melanie’s belief that “those closest to the problem are also closest to finding the solution…”.

We wrote in more depth about the ESG and MSCI ‘problem’ (here) back in 2022, and what we said then still counts:

“The ‘Problem with ESG’ can be solved with the right partner.”

Melanie is only a phone call away, and has a massive pipeline of  brilliant, inspirational Lionesses all doing their utmost in keeping, preserving and creating a wonderful planet for us and for the coming generations - daily making a 'difference…to the lives of others…and to those that are yet to come.

Join us on this journey.

Stay safe.