Everything is connected

A good example of this interconnectedness is the extraction of raw materials like nickel, cobalt, and lithium: although essential for the transition to renewable energy technologies, the extraction of these metals often causes major damage to local ecosystems. Similarly, mining and the production of solar panels are often associated with forced labour in poor working conditions. This is how efforts to combat climate change can inadvertently harm the environment and result in human rights violations.

Holistic approach

If we want to make society truly sustainable, we need to understand the broader consequences of our actions. It won’t always be straightforward and will sometimes involve tough trade-offs. For instance, what takes priority: reducing carbon emissions or promoting biodiversity? Decision-making is further complicated by the availability of data, evolving regulations and uncertainties around government policy. We must not allow this complexity to stand in the way of us taking some kind of action. An imperfect step forward is better than doing nothing at all. But by adopting a holistic approach, we can certainly minimise negative impacts and focus on measures that deliver benefits in multiple areas.

Nature-inclusive farming is a good case in point. Farmers who reduce their use of pesticides not only lower health risks for themselves and their communities, but also minimise negative impacts on soil and water quality. Not to mention that in many cases, this approach can even result in better prices for their products. It’s important to remember, though, that the transition to more sustainable farming practices can be complex.

Taking inspiration from the natural world

Nature itself provides valuable inspiration for understanding these interconnections. Mangrove forests in tropical coastal regions, for example, absorb carbon dioxide, serve as a breeding ground for fish and protect shorelines from flooding. We can apply the lessons learned from such ecosystems closer to home, too. Making business premises greener can help cut energy consumption: just a few strategically placed trees can cool a building, thus reducing the need for air conditioning. Vegetation also improves water drainage and creates a more pleasant and healthier working environment.

Sustainability is a web of interlinked factors where each decision can affect another. That’s why a complete overview of the long-term impacts of our actions is essential to making informed choices. Research recently carried out by Group Economics highlights the need for greater awareness of these connections in the financial sector. One way is by better integrating the impact on biodiversity into our risk models. Deeper knowledge and better data availability will play a key role in driving these advancements. We’ve definitely got work todo here!

Solange Rouschop, ABN AMRO Chief Sustainability Officer