EOSD CEO: Corporates need to embrace sustainability holistically

Arshad Rab, the CEO of the European Organisation for Sustainable Development and Chairman of the International Sustainability Council, is calling on African financial institutions to shift their focus towards holistic sustainability rather than just reporting. In an exclusive interview with CNBC Africa at the Nigeria Sustainability Summit 2023, Rab emphasized the importance of moving beyond voluntary pledges and making sustainability a core part of the business model. Rab highlighted the challenges of creating an economy that is socially inclusive, economically sustainable, environmentally friendly, and climate-neutral. He argued that addressing these complex issues requires a practical framework that integrates sustainability across all aspects of an organization, rather than approaching it in fragmented pieces. One of the key concerns raised during the interview was the risk of institutions merely going through the motions of sustainability reporting without truly embodying sustainable practices. Rab acknowledged this risk and cautioned against placing too much emphasis on reporting at the expense of real sustainability outcomes. He introduced the concept of 'Reporting as an Outcome of Sustainability Excellence' (ROSE), which underscores the importance of establishing sustainability credentials before focusing on reporting. Furthermore, Rab discussed the development of comprehensive sustainability metrics by the Sustainability Standards and Certification Initiative. These metrics cover institutional sustainability, social sustainability, and economic sustainability, highlighting the need for a balanced approach that incorporates all three dimensions. When addressing the level of commitment to sustainability reporting in African financial institutions, Rab stressed the importance of prioritizing genuine sustainability efforts over the quantity of reporting. He emphasized the need for impactful actions that drive social, economic, and environmental change on the ground, rather than superficial reporting for compliance purposes. Rab acknowledged the challenges facing African financial institutions, such as power shortages and other infrastructure limitations, which can hinder their sustainability efforts. He pointed to the newly launched version 2.0 of the sustainability standards as a tool to assist these institutions in overcoming obstacles and transitioning towards genuine sustainability. In conclusion, Rab urged African financial institutions to adopt a more proactive approach to sustainability by embracing practical frameworks, standards, and metrics. By shifting the focus from reporting to substantive sustainability practices, these institutions can contribute meaningfully to creating a more sustainable economy and world.