Climate change is a hot topic right now, with the Australian Federal Government announcing its plan to achieve net zero emissions by 2050 last month. Despite this announcement however, Australia has received harsh criticism for its “hollow” promises and has been labelled as “the rich world’s weakest link at Cop26”. 

However, while government of course plays a major role in implementing the strategies that will lower emissions and achieve net-zero, a sustainable society also requires significant business engagement and leadership to drive environmentally sound practices. And though it would be reasonable to expect that organisations may have stalled their sustainability efforts during the pandemic – seeing it as a “nice to have” rather than a necessity – the last two years have seen a tidal wave of businesses committing to greater sustainability. This may be through achieving net zero carbon emissions, diversifying their workforce or adjusting their procurement policies and supply chains. 

Here, we look at the growing importance of sustainability for businesses, how companies from around the world are tackling the issue and how, surprisingly, COVID-19 may have provided an environmental silver lining. 

Why is sustainability so important for companies right now?

Put simply, sustainability matters to companies because sustainability matters to everyone: stakeholders, employees, customers, lenders, regulators and industry. 

Significant research has demonstrated the positive outcomes for business who commit to sustainable and environmental practices. According to McKinsey, companies with high Environmental, Social and Governance (ESG) ratings consistently outperform the market in both the medium and long-term, showing that while sustainability strategies might be an investment in the short-term, they can lead to greater benefits in the future. In fact, a review of over fifty research articles makes it clear that the biggest financial payoff comes when sustainability grows beyond discrete efforts in functional areas – like procurement – and becomes embedded in the firm’s strategy. 

Business leaders have likely noticed a shift in consumer sentiment, with more customers – whether individuals, governments or other companies – wanting more sustainable products, and those industries perceived as unsustainable are finding it harder to attract financing. 

Attracting top talent with sustainable values 

Whether organisations accept it or not, climate change poses a risk to economic ecosystems, and those organisations that use COVID-19 as a time to reassess their sustainability goals and strategies stand to benefit. But not just by way of profitability. 

In terms of attracting and retaining employees, committing to sustainability is becoming increasingly important, with one-third of both Millennials and Gen-Z saying that a companies’ environmental practices factor heavily into their decision-making process when job hunting. 



Today’s employees want to work for companies with missions that promote sustainability and inclusivity, not divisiveness and harm to the environment. Companies looking to hire the best talent must consider that money may not be enough to attract and retain a new generation of conscientious workers. 

Employees’ expectations of their employers are changing, and they want to be associated with organisations and brands that are at the forefront of driving positive change for the planet and communities. 

How Covid has helped companies achieve greater sustainability 

Surprisingly for many, the COVID-19 crisis has offered some critical opportunities for businesses to commit to more environmentally-friendly practices. With many organisations experiencing such upheaval, they have the unique opportunity to pivot their strategies to reflect their values and use budget, resources, and influence to make positive change. In a way, the pandemic has acted as a “circuit breaker” of sorts, that has helped organisations “unfreeze” much of the inertia that comes with decision and policy making. 

Throughout the pandemic, we saw many major companies make pledges to reduce or eliminate their carbon footprints. At the start of this year, Apple announced it was  modifying executive bonuses based on environmental values in 2021, and Microsoft recently took major action and pledged to become a carbon-negative company within 10 years. Major online retailer Etsy, is the first of its kind to offset 100 percent of carbon emissions from shipping, and Walmart, IKEA and H&M are working to reduce waste and optimise material usage across their supply chains, while also taking steps to address local labour conditions with suppliers from emerging markets. 

AstraZeneca has partnered with Kenyan company Biogas International and the University of Cambridge’s Institute for Sustainability to install biogas stoves in rural communities in Kenya. The biogas stoves replaced firewood and charcoal fires, which were releasing harmful CO2 into the environment and causing Kenyans who were standing over the fires cooking—namely, women and girls—to experience detrimental respiratory issues. 

While it might not be possible for every organisation to achieve such significant sustainability goals in the short-term, the first steps will be to ensure corporate strategy aligns with sustainability efforts. Doing so will set employers up to attract top talent, improve branding, profitability and productivity. 

If you’re looking for staff, partner with our specialist consultants and contact Bayside Group today.