Asian companies doing poorly compared to their western counterparts
Increasingly Asian brands/companies are becoming more and more popular. However, as they stand in the global stage enjoying the global attention, they need to remember to also act responsible as a global company, especially when it comes to sustainability.
World Wide Fund (WWF), recently conducted to research to determine how Asian consumer goods companies measure-up against their western counterparts when it comes to sustainability. The report titled, “Asian Fast Moving Consumer Goods (FMCG) - A Sustainability Guide for Financiers and Companies”, stated that Asian companies and their investors are not doing enough to protect the environment.
Twenty-six firms across APAC markets including China, India, Indonesia, Malaysia, Philippines, Singapore, South Korea, Thailand and Vietnam with market worth of at least US$1 billion were picked for the report. The report reviewed how they managed the environmental impact of the three most important elements of their operations, water use, packaging and soft commodities such as oil, sugar, and meat. The study revealed that Asian companies were less aware of environmental, social and related business risks when compared to their western counterparts. For example, outer/external appearance is important in Asia and thus, many FMCG companies in Asia use extensive amounts of packaging, which generates waste which is not always biodegradable.
An effective way to hold these companies accountable is to increase the voices of consumers who purchases products from these companies. Consumer must increasingly be responsible in choosing and purchasing products that are environmentally friendly. They must also demand companies to be accountable for doing their best to act responsibly when it comes to sustainability. I encourage everyone to look at the report to understand how your favorite brands/companies are doing.
For the full report click here.
Daniel Kim
