Doing business differently
How sustainability is transforming Kiwi enterprise
Enabling change for good
When the CEO of the world’s largest financial asset manager, BlackRock’s Larry Fink, famously penned a letter to global CEOs in 2018 stating that society is demanding companies serve a social purpose, business leaders sat up and took notice.
Since that warning, and as climate change effects become clearer every day, sustainability has now become a business imperative, rather than the nice-to-have it may once have been.
New Zealand businesses are increasingly looking to enable real, tangible change for the greater good of the environment, the economy and wider society. A recent MBIE report indicated 74% of the 100 largest organisations in NZ reported on sustainability performance.
Sustainability is something the Māori business community has long embraced with many iwi businesses making their children’s children the focus of decisions they make today.
And the push towards sustainability is driven by demands from a raft of stakeholders – employees, investors and consumers.
MBIE’s report The future of Business for Aotearoa New Zealand noted that 29% of Kiwis are actively seeking out ‘do good’ brands and 87% see sustainability as a key concern.
But true sustainability is more than an office recycling bin - it requires a complete mind-shift. As the Sustainable Business Council says in its strategy document – it’s about shaping a new normal.
Greener pastures
Agriculture has long formed the backbone of New Zealand’s economy and general prosperity. Today the sector accounts for 10% of GDP, over 65% of export revenue and nearly 12% of our workforce.
But, as the Ministry for the Environment’s emissions reduction plan sets out, agriculture is also a significant emitter, contributing 50% of NZ’s gross emissions.
The government is clear that agriculture needs to contribute to meeting our climate goals, with its focus areas for agriculture covering:
- Pricing agricultural emissions by 2025
- Accelerating new mitigations
- Supporting producers to make changes
A fifth focus area is ‘Enable Māori-led solutions’, working across each focus area.
But many farmers are not waiting for government-mandated directives and have instigated measures themselves. One example is Karen Williams’ Ahiaruhe Farm – a sheep, beef and arable farm in the Wairarapa.
Karen Williams and her family on Ariaruhe Farm in Wairarapa have spent two decades nurturing biodiversity.
Karen Williams and her family on Ariaruhe Farm in Wairarapa have spent two decades nurturing biodiversity.
Over the past 22 years Williams and her family have worked to create a natural habitat that encourages real biodiversity.
With a focus on the future, Williams understands the challenges of implementing sustainable practices, but also sees the benefits. She points to the necessity of the “three-legged stool” of sustainability made up of social, economic and environmental outcomes.
In encouraging fellow farmers and growers, Williams suggests they just “get started on your journey of sustainability, just make yourself a plan”.
Watch the video to learn more about Ahiaruhe Farm and their important work
A holistic community-focussed approach
Growing businesses are increasingly seeing sustainable practices as going beyond ticking a few green boxes.
For many, the importance of sustainability extends to the wellbeing of their employees, the communities they work in and future generations.
It’s not a matter of greenwashing – but of firmly held principles that go to the core of these purpose-led organisations.
The Sustainable Business Council’s Strategy 2023 -2027 says a future that is economically vibrant, resilient, and sustainable is within reach. And when it comes to the role of business in this transition, it sees businesses as re-inventing themselves.
By 2030 the council envisages businesses:
- Reducing emissions in line with national and international requirements
- Preparing for, and adapting, to a changing climate
- Placing people and communities at the core of decision-making
- Balancing economic, environmental and social outcomes in their business models and value proposition
Sustainability, in all its ramifications, is intrinsic to Queenstown-based Mana Tāhuna, a kaupapa Māori organisation committed to positive social, cultural and environmental development for its community.
Mana Tāhuna CEO Mike Rewi says their community-based enterprise wants to better lives for Māori in the Queenstown area.
Mana Tāhuna CEO Mike Rewi says their community-based enterprise wants to better lives for Māori in the Queenstown area.
CEO Mike Rewi explains that Mana Tāhuna was born of a seed planted by whanau decades ago and, alongside its extensive social support services, it’s also on a mission to make Lake Hayes swimmable again.
Rewi says Mana Tāhuna wants to be a pillar of Te Ao Māori in the community and it views everything through a Te Ao Māori lens.
He says for Māori it is about finding a voice. “Sometimes people need to stand up and be that voice … and then actively be doing stuff that creates that for the generations to come.”
Watch the video to learn more about Mana Tāhuna and their empowering community-based enterprise
Clean-tech innovation for the long-haul
As New Zealand’s sustainability journey gains momentum, the government has a key focus on sustainable tech or clean-tech.
There’s a growing pipeline of clean-tech businesses, which Callaghan Innovation describes as businesses that develop innovative products, processes and services that bring about a stable climate, clean water and smart-resource use.
The organisation’s business innovation advisor Phil Anderson states that clean-tech is critical for a zero-carbon, climate-resilient future. “New technology will play an important role in solving climate change and other environmental problems, while creating a high-value export industry and new employment opportunities.”
Fabrum co-founder and managing director, Chris Boyle. Fabrum is a Christchurch-based clean-tech business that is influencing the adoption of new technology for a cleaner, greener emissions world.
Fabrum co-founder and managing director, Chris Boyle. Fabrum is a Christchurch-based clean-tech business that is influencing the adoption of new technology for a cleaner, greener emissions world.
In Christchurch one successful clean-tech business, Fabrum, is influencing the adoption of new technology for a cleaner, greener emissions world as it works to de-carbonise the economy through hydrogen innovation, providing sustainable transport, travel and industrial solutions.
And for Fabrum founder and managing director, Chris Boyle, it’s also very personal. “Accountability is really simple. Look across the dinner table, look at your children and ask yourself the question: Are you supporting a better place for them?”
Watch the video to learn more about Fabrum and its incredible mission
Supporting NZ’s sustainable businesses where it counts
For many businesses thinking creatively about sustainability options, funding can be an issue. A 2021 Callaghan Innovation report notes that, when compared to other small advanced economies, NZ’s climate tech innovators struggle to raise the same amounts of funds that innovators in comparable economies are able to.
BNZ’s Head of Social Impact, Frances Ronowicz says the bank is committed to working with customers to enable the best social impact possible.
BNZ’s Head of Social Impact, Frances Ronowicz says the bank is committed to working with customers to enable the best social impact possible.
But getting the right financial support is essential. BNZ’s Head of Social Impact, Frances Ronowicz, says for BNZ it’s about manaakitanga, and working with its customers for the best social impact.
“For us, manaakitanga is about caring and connecting with our communities,” she says. “Making sure that from a social point of view, we're being generous in what we do, in how we use our products and services, and how we're adapting our mindset to make sure that we can provide more sustainable options.”
Ronowicz says we have to think about things differently. “Whether that's environmental change, or social change… money is an enabler, and we have to do things differently, and change our mindset and our focus in how we approach things in order to ensure a good future...”
To learn more, check out this lively discussion with industry leaders, hosted by Arrun Soma.
For businesses embarking on their own sustainability journey, partnering with a bank that shares their values and offers knowledgeable support is key.
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