SMEs urged to employ sustainable practices

CEBU, Philippines — The cost of green, sustainable products are going down as more and more companies embrace sustainable practices, including the adaption of the environmental, social and governance (ESG) standards, an economist said.

In the recently held RCBC’s Businesseries Forum, Michael Ricafort, chief economist of the Yuchengco-led Rizal Commercial Banking Corp. (RCBC) said that while pricing remains a challenge, there has been an improvement, especially in the power sector wherein more industry players are now investing in renewable energy (RE), such as solar, wind, and hydro.

“We have seen it in RE. It was very expensive 10 years ago. But look at it now – its price has gone down significantly,” Ricafort said, adding that the road towards a livable earth requires technology, scale, and determination among companies and SMEs to adapt.

RCBC has also urged small and medium enterprises (SMEs) to redefine their business models by employing sustainable practices. This will not only save the environment but will also make it more affordable for consumers to patronize sustainable products.

The current definition of sustainability is the “avoidance of the depletion of natural resources in order to maintain an ecological balance; it consists of fulfilling the needs of current generations without compromising the needs of future generations.”

Roberto Bascon, director of the Institute of Corporate Director’s (ICD) Research & Development, said sustainability can be done by businesses in many ways, such as implementing a circular economy, waste reduction and recycling, and sustainability-adherent supply chain.

Bascon said that a circular economy is being regenerative and restorative by intention and design. The value chain under such a feature is that the finished products after consumption by consumers will still have value. For example, electric panels, after consumption, those panels can be recycled. Then there will be sustainable production and consumption.

“We can also do waste reduction and recycling, and sustainability-adherent supply chain by choosing suppliers that adhere to sustainable practices. Then we can also implement telecommuting and remote work, which also helps because it decreases carbon emission at the same time there is employee satisfaction in your business,” the ICD director added.

According to Jeannie Javelosa, the co-founder of ECHOStore Sustainable Lifestyle, said investing in sustainability has rewarded her business and nature. ECHOStore is the pioneering and award-winning sustainable retailer of green products in the Philippines.

“EchoStore integrates supply chains of community producers and gathers public-private partnerships. This results in value creation in products and services under our green brands plus empowerment of community microenterprises. Our world is in crisis so we need to change our ways,” Javelosa said.