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Chief Executive, Crescent Enterprises; Impact Entrepreneur

Posted: 06/05/2014 12:22 pm EDT Updated: 06/05/2014 12:59 pm EDT

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(https://reader015.{domain}/reader015/html5/0720/5b510f3926ff6/5b510f4438674.jpg)

Today is World Environment Day (http://www .unep.org/wed/). Celebrated in more

than 100 countries, the United Nations describes it as the "principal vehicle" for

promoting environmental action and awareness, and "the people's day for doing

something positive for the environment." Ultimately, this is a call to action for

individuals, governments and businesses alike to strengthen their efforts in defense of

our global environment.

For individuals, the incentives for protecting the environment are seemingly obvious.

These include our ability to enjoy the natural surroundings in which we live, the

availability of food and resources upon which we rely, and the ultimate goal of

leaving a better world for our children and grandchildren. While we may not always

make the m ost sustainable choices when choosing cars or cooling our homes, the

importance of the environment is omnipresent in each of our daily lives.

For national governments, the incentives to protect the environment are also clear,

but must be balanced with other interests. The need to balance environmental policies

with short-term economic priorities is a source of contention in many countries in

developing, as w ell as developed, markets worldwide. And while there will alw ays be

differences of opinion on where that right balance lies, the political significance of the

environment to the vast majority of governments and their constituents is broadly

accepted.

For intergovernmental institutions, such as the United Nations and the G20

(https://www.g20.org/), the importance of the environment has been high on their

agenda for decades. And while the international community has sometimes been slow

to take shared and decisive action, there is a growing understanding of the negativesocial, political and security impacts if the w orld's environmental challenges are left

unchecked.

However, when it comes to business, the incentives for sound environmental practices

can too often be obscured by other factors. For example, the pressures of competition,

the short-term perspectives of many boards and the emphasis placed on quarterly

results can push environmental concerns way down a company's list of priorities. In

fact, PwC's Global CEO Survey (http://www.pwc.com/gx/en/ceo-survey/) for 2013

found that concern over climate change had actually declined significantly among

business leaders due to being "seemingly overshadowed by more pressing short-term

economic issues".

I believe that is a shortsighted and imprudent approach. In today's increasingly

globalised economy, no business can afford to ignore the importance of sound

environmental practices, in-turn risking their corporate reputation, relations withstakeholders and long-term commercial interests. The bottom-line is that businesses

willing to make sustainable decisions today w ill be more likely to reap sustainable

rewards in the future, through the technical benefits of innovation and the

commercial benefits of increased trust.

While some business owners may regard commercial and environmental factors as

mutually exclusive, or as a zero-sum game, consumers no longer see it that way.

Perhaps they never did. According to the Edelman Trust Barometer

(http://www .edelman.com/insights/intellectual-property/2014-edelman-trust-

barometer/) for 2014, an annual study measuring trust in a range of institutions, 84

percent of respondents expressed a belief that businesses can pursue their self-interest

while at the same doing good for society and the environment.

In fact the Edelman study found that since the economic crisis of 2008, the

importance of "integrity-based attributes" for generating trust has actually been on

the rise, compared with more traditional business metrics. Companies that fail to heed

this warning, and purely pursue commercial interests at the expense of sustainability,

will eventually pay for it in reduced trust in the marketplace, a weakened reputation,

and ultimately poorer overall results. Conversely, firms that can demonstrate integrity

to their stakeholders through a genuine commitment to sustainability in all its forms

will increasingly find themselves at a commercial competitive advantage.

(http://www.huffingtonpost.com/2014/07/08/carleigh-oconnell-graffiti_n_5567875.html?utm_hp_ref=mostpopular)

(http://www.huffingtonpost.com/2014/07/09/jessica-simpson-wedding-photos-people_n_5570180.html?utm_hp_ref=mostpopular)

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3/6

Overrated Tourist Attractions You

Should Avoid This Summer

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John Boehner Rejects Calls To

Impeach Obama

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'Game Of Thrones' Star Tells George

R.R. Martin To 'Go F--k Yourself'

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Apparently, Eva Mendes Is Pregnant

With Ryan Gosling's Baby

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Zooey Deschanel: Not Every Woman Is

'Dying To Give Birth'

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Conversations

MORE:

It is easy to think that one person, or one business, can never make a meaningful

difference, and that short-term priorities usually prevail. However that attitude is in

itself as unsustainable as the actions that it will precipitate. According to UNEP

(http://www .unep.org/), "when multiplied by a global chorus, our individual voices

and actions become exponential in their impact." On this World Environment Day,

and in the year ahead, it is in the long-term commercial interests of every business to

lend their voice to that growing tune.

Badr Jafar (http://www.badrjafar.com) is founder of the Pearl Initiative

(http://www.pearlinitiative.org/) and chief executive of Crescent Enterprises

(http://www.crescententerprises.com/)

Follow Badr Jafar on Twitter: www.twitter.com/BadrJafar

(http://www.twitter.com/BadrJafar)Trus t, Sharjah, Pwc, United Nations, Abu Dhabi, UN World Environme nt Day, G 20 Summ it,

Crescent Enterprises, Edelman, Dubai , World Environment Day, Unep, Environment, Sustainability, Badr

Jafar, Pearl Init iative, UAE

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(http://www.slate.com/blogs/moneybox/2014/07/10/l

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