The sustainability sector has been plagued by plenty of greenwashing cases, whether intended or not. We speak to The Green Factory's Harith Ridzuan to see how companies can maintain trust in their brand as they highlight their sustainability strategy
In recent years, companies both big and small have started to incorporate ESG (environmental, social and governance) into their businesses. The Covid-19 pandemic has further accelerated this shift, just as more investors begin to see ESG-friendly companies as being more resilient and better performers in the long run.
As more companies announce their ESG commitments, there is growing concern that some may be overselling their plans and misleading people with their words. Several companies and even governments have already been called out for greenwashing. The United Nations has also appointed a panel earlier this year to make recommendations on the standards and definitions for setting net-zero targets, as well as to scrutinise commitments made by governments.
To find out how companies can avoid overstating or misleading with their sustainability claims, we reached out to Gen.T honouree Harith Ridzuan for his insights. Sometimes known as the Green Carpenter, Harith is known for transforming his family's furniture company into one of Malaysia's leading manufacturers of sustainable wood products. At The Green Factory, he also advises other companies that want to become more environmentally friendly.
"When we talk about sustainability, it's about the whole operation of the business and not just a small part," he says. "Just because you use 'green' materials doesn't make you 100 percent sustainable."
"Many businesses also think it will be costly to be a 'green' business, but being sustainable actually gives companies a competitive edge." Harith says this includes reduced operational costs, increased margins and being attractive to quality young talents.
"We now live in an era where we have enough knowledge to make money and, at the same time, contribute to making the world better. We need to create more awareness among companies on the holistic approach to sustainable businesses. Let's be part of the change."
Here, Harith shares four ways companies can avoid greenwashing and instead implement truly sustainable practices.