‘Businesses must embrace sustainability to differentiate themselves in crowded markets’

By Daniel NONOR, Accra

Venan Sondo, a sustainable business & management executive and the  Executive Director of Chaint Afrique has emphasized sustainability as vital component of modern business strategy in a fast-growing global economy fraught with geopolitical tensions, fluctuating markets, and evolving consumer expectations.

In an exclusive interview with The New Finder, Mr Sondo shares insights on how businesses from large corporations to small and medium-sized enterprises (SMEs) can not only survive but thrive in this challenging environment.

“The geopolitical landscape, the global economy, national economies, demands from consumers, and the ever-changing perspectives of these consumers based on their exposure to vast amounts of information mean that businesses have to respond to different critical stakeholders. Some of these stakeholders hold the key to the very existence of these businesses.”

He explained that navigating this shifting landscape required more than just traditional business practices. He noted that companies must now operate with a heightened awareness of their environmental impact, their relationship with the communities they serve, and the regulatory frameworks within which they operate.

According to him sustainability reporting has emerged as a crucial tool for businesses to demonstrate their commitment to the “triple bottom line” of people, planet, and profit.

“Sustainability reporting is about ensuring that you are operating in a way that considers the planet, the people, and also bears in mind the profit—the three Ps, as I call them,” he explained.

Furthermore, he emphasised that “implementing this framework means you analyze your business operations, focusing on your business imperatives, the vision of the business, and the objectives of the business. Then you develop response mechanisms in terms of how your business is protecting the planet, how it is engaging with the economy, how it is relating to consumers and communities, and how it is responding to regulatory demands.”

The Imperative for SMEs

Mr Sondo explained further that while large businesses may have the resources to integrate sustainability into their operations, SMEs often view it as an additional burden rather than a strategic advantage.

He however, argued that sustainability is even more crucial for SMEs, particularly those seeking to differentiate themselves in a crowded market.

“For SMEs, especially those that are not necessarily unique in what they do, sustainability can be a key differentiator. It’s about how they are setting themselves up to be resilient against the ever-changing dynamics in the economy.”

 Mr Sondo referenced the environmental challenge being faced by the country as a key example to buttress his point. He explained that many SMEs rely on plastic for packaging and product distribution, but as environmental regulations tighten, the cost of using plastic will inevitably rise hence, any forward-thinking businesses should be seeking alternatives.

“Some businesses will rely on the fact that they can produce and market their products using plastic containers. But eventually, the use of plastics will be highly regulated, which means it will cost more to produce a product using plastics,” Sondo points out. “Forward-thinking businesses would ask, ‘How can I now develop my product in a way that would not be affected in the future by stringent regulations on plastics?’ They might develop a distribution model that includes a way to take back the packaging from consumers or use biodegradable materials, which would not present issues with plastic disposal.”

This proactive approach, while potentially more expensive upfront, can save SMEs from future regulatory headaches and position them as leaders in sustainability.

Aligning with national and global goals

Mr Sondo also highlighted the broader implications of sustainability, particularly in the context of national commitments to global agreements like the Paris Climate Accord.

 “Ghana, for example, is committed to the Paris Agreement in terms of climate change commitments, which means the country has a set of nationally determined contributions. These are activities the country has committed to implementing to reduce carbon emissions.”

He stressed that for businesses, aligning with these national goals is essential to avoid future disruptions.

“Suppose you’re an SME that produces and sells charcoal. The use of charcoal, especially when produced unsustainably, contributes to deforestation, which in turn leads to increased carbon emissions. As regulations tighten, only charcoal produced from sustainable sources might be permitted. SMEs that rely on unsustainable charcoal production would struggle to operate under these new rules.”, he stressed

He however suggested that such businesses explore alternative sources of charcoal, like coconut or rice husks, which are more sustainable. “This shift would not only make them more resilient to regulatory changes but could also improve their market position,” he said.

The intervention of NetCycle in bridging a gab

One of the key challenges in promoting sustainability is making it accessible, affordable, and aspirational for the masses “Sustainable living is crucial to achieving global environmental and social safeguards, but it’s often expensive. Some of the products are not affordable or available to the masses, and they are not aspirational,” Mr Sondo noted.

He explained that this challenge is particularly evident in rural communities, where access to sustainable choices is often limited.

He used his organization, Chaint Afrique and its work in addressing some of these gaps through initiatives like NetCycle, a project designed to bring recycling infrastructure to rural fisher folks 

“We focus our project NetCycle intentionally in rural communities because there is a critical need due to the lack of access to infrastructure for recycling. By designing NetCycle so they can recycle their fishnets, we make the basic choice of recycling—one of the most fundamental sustainable actions—accessible to them.”

NetCycle also provides financial incentives to encourage participation. “We pay them for the nets they bring to us, making it an affordable choice they can make because it doesn’t cost them anything. It safeguards the environment because we prevent them from discarding these nets improperly. It becomes aspirational because the entire community can participate and earn something, while also contributing to environmental preservation.”

Mr Sondo emphasized the importance of making sustainable choices universally accessible and affordable stressing that  particularly for  SMEs, this means embracing sustainability not just as a compliance requirement, but as a strategic advantage that can enhance resilience, improve market positioning, and contribute to a more sustainable future for all. “Sustainability should not be a privilege that only a few can afford. It should be a universal service something that is available, accessible, affordable, and aspirational for everyone.”